Federal regulators are pointing to Minnesota policies as examples of how to cut greenhouse gases by 30 percent at the nation's power plants under rules the Obama administration proposed Monday.
The U.S. Environmental Protection Agency proposed rules, ultimately to be drafted by states, requiring investments in energy efficiency and renewable and lower-carbon energy such as natural gas — policies that have been in place in Minnesota for years.
"This is very different from anything they have done before — the fact that they are allowing massive amounts of flexibility in how you meet it," said David Thornton, assistant commissioner for air policy at the Minnesota Pollution Control Agency, which will be responsible for the state's plan. "I am rather assured by the fact that we know how to do this."
In its 645-page proposal, the EPA cited Minnesota for collaborating with investor-owned utilities to reduce emissions and using energy efficiency programs to cut demand for electricity by 13 percent. Colorado and California also were mentioned. Across the nation, the EPA said, 38 states have renewable energy requirements and 47 states have conservation programs to cut power demand.
Executives of Minnesota's three largest electric utilities, Xcel Energy, Great River Energy and Minnesota Power, said they're well positioned to comply with rules to achieve a 30 percent reduction of greenhouse gas emissions from 2005 levels nationwide by 2030.
Coal generates about 40 percent of the nation's electricity. In the coal-mining state of North Dakota, the share is 79 percent, according to 2013 U.S. Energy Information Administration data. Minnesota relied on coal for 46 percent of its power last year.
Xcel Energy, the state's largest utility with 1.2 million electric customers, said it has reduced carbon dioxide emissions by nearly 20 percent since 2005, and is on track to reduce them 31 percent by 2020. Over the past decade, the utility has closed some coal plants, shifted generation to natural gas, including units in St. Paul, Minneapolis and Burnsville, and invested in renewable energy, especially wind.
Unlike smog-causing pollutants, carbon dioxide can't be reduced by using standard smokestack controls. Cutting carbon means replacing some coal power plants, making others more efficient or running them less, investing in lower- or no-carbon power sources like natural gas, wind, hydro and solar and offering utility customers incentives to conserve.