Minnesota is entering a new era of energy growth and innovation, thanks to long-overdue permitting reform that finally cuts through decades of red tape. From wide-open prairies perfect for wind farming to myriad waterways and underground pipelines to ferry fossil fuels, projects that once languished in bureaucratic limbo are now breaking ground and unleashing a new wave of energy development to power our state.
The Gopher State’s ample resources lend themselves to a diversified power grid that is uniquely situated to benefit from the revamped energy provisions of President Donald Trump’s landmark legislation. However, while renewables account for 33% of Minnesota’s net in-state power generation, fossil fuels are still responsible for roughly 70% of the state’s total power supply. And with a harsh Midwest winter approaching, we need predictable baseload power from coal, natural gas and nuclear sources to keep Minnesotans warm when wind and solar fall short.
Today, natural gas piped in from South Dakota, Canada and Iowa plays an increasingly important role in providing this baseload, powering two-thirds of Minnesota households, and counting. A crucial junction for interstate utility traffic, Minnesota’s energy infrastructure also facilitates the transfer of coal and natural gas throughout the Midwest and supports a fuel sector that provides over 10,000 good-paying, full-time jobs, powering local economies and supporting families across the state.
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Provisions that open federal lands and waters to fossil fuel production and stipulate yearly lease sales will ensure that Minnesotans maintain this steady supply of domestic energy while revitalizing key regions from coast to coast ranging from the Gulf to Alaska. Other measures that scale back the federal government’s royalty rate on offshore and onshore gas projects to a more modest 12.5% will help re-prioritize traditional energy projects and reward producers who invest in America’s energy future.
Minnesotans need not look far to see these reforms at work. The recently approved carbon capture pipeline running from Fergus Falls to Wilkin County shows how a streamlined approval process will be able to facilitate projects that help balance economic opportunities with environmental stewardship. Farther south, Northern Natural Gas is expanding its interstate pipeline capacity to deliver more affordable home heating and dependable power generation to families and businesses across the region. These projects were approved prior to recent permitting reforms, but they exemplify the kinds of developments that will now face fewer obstacles and likely advance in Minnesota with increasing frequency in the years ahead.
Central to this approach is a long-overdue overhaul of the National Environmental Policy Act’s stubborn, slow-moving permitting process, helping game-changing developments break ground in months, not decades. Under the new law, federal agencies, known to drag approvals out for four to six years on average, will now face a one-year timer to greenlight projects before they are automatically approved. To further speed urgent or time-sensitive applications, project sponsors can now pay a fee for expedited review as well.
Smart steps are also taken to safeguard tax incentives and reduce foreign influence. Companies tied to foreign adversaries will face stricter limits on clean energy tax credits, and new solar projects will have to meet firm implementation deadlines. Meanwhile, proven U.S. producers can continue to benefit from support for carbon capture and storage through the 45Q tax credit. In Minnesota alone, 100 of the state’s 123 industrial and power facilities qualify for these incentives, which encourage projects that capture, store and reuse carbon emissions.
Related: As Minnesota curbs climate emissions, what’s the future of natural gas?
As working-class Minnesotans recover from the record inflation under the previous administration, these latest permitting reform measures are a welcome reprieve for working families fed up with Democrats’ habit of putting green goals over consumer costs. By recalibrating our national energy policy toward America-first priorities, Minnesota’s energy ecosystem can finally reach its full potential.
American energy prosperity is on the horizon at last, and Minnesotans have President Trump and Republicans in Congress to thank.
Paul Gazelka is the former majority leader of the Minnesota Senate and previously served on the committee on Environment and Natural Resources.
The post Minnesota powers up under Trump’s regulatory reform appeared first on MinnPost.
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