Ohio environmental advocates are questioning the intent of a pending state law that would add nuclear power to the state’s legal definition of “green” energy.
House Bill 308’s sponsors say the legislation is meant to signal that Ohio is open for business when it comes to nuclear power research and development, but critics warn the language could have broader implications in the future.
“Legislators don’t just put something into the code unless it has meaning and purpose and value,” said Megan Hunter, an attorney with Earthjustice, one of several environmental groups challenging a similar 2022 state law that classified natural gas as a “green” energy source. “Why would you do this if it has no impact or meaning or effect?”
Critics fear the language could be used to greenwash power plants or divert public funding from renewable energy projects, though the bill’s sponsors deny that motive.
“It doesn’t promise any incentives or anything beyond simply placing nuclear under the category of green energy in the Ohio Revised Code,” said state Rep. Sean Brennan, a Democrat from Parma who co-sponsored the nuclear legislation with Republican state Rep. Dick Stein of Norwalk.
The General Assembly passed the nuclear legislation on Dec. 11. As of Thursday it was awaiting Gov. Mike DeWine’s signature.
Brennan said the question of why the language should be in a law instead of just a resolution didn’t come up in discussions with Stein, who initially asked him to cosponsor the bill.
Stein said the legislation is “about sending a signal to the market that Ohio wants to be a partner and won’t be an impediment,” in contrast to other states that don’t want nuclear energy. He said he hopes it will help attract jobs and federal funding, building on last year’s creation of a state nuclear development authority.
Stein would not speculate on follow-up steps lawmakers might take, saying his term in the House of Representatives ends this month.
What the law could do
Ohio does not currently have state incentives or policy preferences for “green” energy. The state’s renewable energy standard essentially ended in 2019 as a result of House Bill 6, the coal and nuclear bailout law at the heart of the state’s ongoing corruption scandal. Opponents testifying against the current legislation, though, said they worry the definition will be used to water down future clean energy policies.
“HB 308 will enable the manipulation of public funds into private, corporate hands,” said Pat Marida, a coordinator for the Ohio Nuclear-Free Network, in her December 13 testimony. Also, she said, “there is nothing ‘green’ about nuclear power,” referring to radioactive waste, which continues to be stored at power plant sites.
Future state programs might offer funding or other advantages for projects that meet the state’s definition of “green” energy, for example. And even if the definition doesn’t open doors to new government funding, it could provide cover to private companies that want to count gas and nuclear energy toward their climate or clean energy targets, another advocate warned.
“Insidiously, it does potentially become important,” said Nathan Alley, conservation manager for the Sierra Club of Ohio. Many companies have adopted clean energy goals, he noted. “This might telegraph to them that they could invest in nuclear energy and achieve the same climate and/or energy goals as if they invest in solar or wind.”
Ohio lawmakers aren’t the only ones who want to define natural gas and nuclear power as “green energy.” Model legislation finalized by the American Legislative Exchange Council this fall does the same thing. ALEC is a Koch-linked group that has long opposed renewable energy and actions to address climate change.
ALEC’s model bill would have its definition “apply to all programs in the state that fund any ‘green energy’ or ‘clean energy’ initiatives.” Another model ALEC bill would define nuclear energy as “clean energy” and put it on a par with renewable energy.
A coalition of environmental groups is currently challenging House Bill 507, Ohio’s 2022 law that labeled natural gas as “green energy,” arguing in court that the way in which it was passed violated the state constitution. The groups say last-minute amendments violated provisions that require bills to deal with a single subject – the initial two-page bill dealt with chickens – and call for at least three hearings in each house of the General Assembly where lawmakers can hear testimony from supporters and opponents.
That lawsuit has been briefed and is currently awaiting a decision from Judge Kimberly Cocroft at the Franklin County Court of Common Pleas. HB 308 should not affect that case, said Hunter and Alley.
As with HB 507, though, lawmakers added last-minute amendments to HB 308. One of those would extend lease terms for drilling under state park and wildlife areas from three years to five years. That was unacceptable to Brennan, who voted against the Senate amendments when it came back to the Ohio House.
Still, he supports what he views as the main purpose of the legislation: attracting more nuclear power to Ohio. In his view, solar and wind won’t be enough to meet growing energy demands while shifting away from fossil fuels in order to address climate change. “I believe nuclear is going to be hugely important for our energy independence, and hopefully Ohio will become an exporter of electricity in the future.”
Hunter wasn’t surprised that lawmakers made last-minute amendments to the bill. For her, it shows the importance of the ongoing litigation over HB 507.
“Those constitutional protections are there for a reason,” she said. “And seeing the General Assembly have blatant disregard for them again and again harms Ohioans. It deprives them of these constitutional rights.”
Two community-based geothermal pilot projects, each led by equity-focused nonprofits, have advanced to the second phase of funding through a U.S. Department of Energy program.
Blacks in Green, a community organization based in Chicago, and Home Energy Efficiency Team, a Boston-based nonprofit dedicated to promoting an equitable transition to clean energy, were included last week in a set of five projects across the country that have been awarded a total of more than $35 million from the DOE’s Geothermal Technologies Office to implement geothermal installations.
The five project teams advancing to the next phase of the DOE project were among a cohort of 11 projects participating in the initial phase of the program, where coalitions selected project sites, assessed geothermal resource and permitting needs, conducted feasibility analysis and local engagement, and identified workforce and training needs. The selected projects’ range of sizes, technologies, and innovations will provide potential templates for other communities considering implementing geothermal systems.
Three of the five projects are located in urban or suburban areas; two are in rural communities. The other three recipients are the city of Ann Arbor, Michigan; the University of Oklahoma, for a project in the town of Shawnee; and GTI Energy, for a project in Hinesburg, Vermont.
Tapping into Chicago’s alleys
Blacks in Green, located in West Woodlawn, a predominantly Black community on Chicago’s South Side, serves as the lead for a coalition which was awarded $9.9 million for its Sustainable Chicago Geothermal pilot. Other coalition partners are the City of Chicago, University of Illinois, The Accelerate Group, Citizens Utility Board, Climate Jobs Illinois, dbHMS, GeoExchange, and Illinois AFL-CIO.
The pilot, also located in West Woodlawn, utilizes alleys to circumvent the need for vast open plots for subterranean loop fields that form the heart of a geothermal array. Locating the bulk of geothermal loop lines in alleyways also sidesteps the underground congestion of existing utility infrastructure typically located underneath city streets.
It’s among an assortment of elements in the Sustainable Square Mile approach that advances BIG’s vision for energy justice through clean energy and microgrid/VPP systems owned and managed by the community, said Naomi Davis, BIG’s founder and CEO.
“BIG launched in 2007 with a goal of increasing household income and community resilience against the harms of climate crisis at neighborhood scale using the new green economy — so we’re grateful for this chance to make it manifest,” Davis said in a news release.
Along with installation of the needed infrastructure within the multiblock footprint, year two of the West Woodlawn project will focus on community outreach and job programs. Once construction is complete, the geothermal system will provide heating and cooling, not to mention lower utility bills, for potentially more than 200 households.
“The Sustainable Chicago Geothermal project will be a transformational investment in the West Woodlawn community. The effort to eliminate harmful emissions from homes and businesses, while lowering energy burden, has proven to be a community-wide challenge, and requires a community-wide solution,” said Andrew Barbeau, president of The Accelerate Group and principal investigator of the Blacks in Green project, in a news release.
The need to reconstruct the alleyways after installation of the geothermal array also presents the opportunity to replace asphalt or concrete with permeable pavers. This would work to promote climate resiliency through mitigation of urban flooding, a persistent occurrence in many of Chicago’s South and West Side communities, said Nuri Madina, the director of Sustainable Square Mile, who serves as point person for the pilot.
“All of our programs are designed to create multiple benefits,” Madina told the Energy News Network in September.
A first-of-its kind project in suburban Boston
Home Energy Efficiency Team, commonly referred to by the acronym HEET, in partnership with Eversource Energy; the city of Framingham, Massachusetts; and engineering consultant Salas O’Brien; was awarded $7.8 million toward construction of a utility-based,community-scale geothermal system.
“We are honored to receive this funding from the DOE’s Geothermal Technologies Office as part of the Community Geothermal Heating and Cooling initiative, and to show how geothermal energy networks can be interconnected to increase efficiency, build resilience, and decarbonize at the scale and speed we need to achieve our climate goals,” said Zeyneb Magavi, executive director for HEET, in a news release.
The proposed plans by HEET and its partners would connect to the first Framingham geothermal network, which was commissioned earlier this year. Once approved by the state Department of Public Utilities and upon completion, it would represent the first utility-owned community geothermal network to connect to an adjacent operational loop, establishing guidelines for the interconnection and growth of geothermal networks.
“This innovative project not only showcases Framingham’s commitment to sustainable energy solutions but also sets a precedent for other communities across the nation. By harnessing the natural heat from the earth, we are taking a significant step towards reducing our carbon footprint and promoting renewable energy sources. Our collaboration with HEET and Eversource exemplifies the power of partnerships in driving forward clean energy initiatives,” said Framingham Mayor Charlie Sisitsky in a news release.
“So instead of feeding natural gas into these buildings, we could feed geothermal water,” Magavi said. “And then we could meter that and sell that. It’s no different than when you pay your water bill.”
Three Ohio companies are investing in hydrogen fuel cell passenger vehicles even as the U.S. market for electric vehicles continues to grow. Each has an innovative approach to the chicken-and-egg problem of having fuel available when and where drivers need it.
The Ohio companies’ focus on fuel cell passenger vehicles is unique nationwide, especially for a state that doesn’t yet have any public hydrogen fueling stations. California, where almost all of the country’s hydrogen fuel cell cars are registered, still has fewer than 60 public stations.
“When we see hydrogen transportation deployment projects, it’s really more on the medium- and heavy-duty side,” said Mark Henning, a researcher at Cleveland State University’s Energy Policy Center at the Maxine Goodman Levin School of Urban Affairs.
A hydrogen car is essentially an electric vehicle with an onboard fuel cell providing electricity alongside a battery. General Motors first displayed a prototype for a hydrogen fuel cell vehicle back in the 1960s, but hydrogen cars weren’t available to U.S. consumers until leases for the 2015 Hyundai Tucson Fuel Cell began, with sales of the Toyota Mirai starting that fall.
Hydrogen car sales have been essentially limited to California, where state policy and public funding supported the development of some public fueling stations. Since then, only about 18,000 fuel cell cars have been sold in the U.S.
Yet Ohio companies have been working on hydrogen energy for more than two decades. The state trade association, the Ohio Fuel Cell and Hydrogen Coalition, traces its history back to 2003.
If successful, the current efforts could eventually provide another option for switching away from gasoline-powered cars. While electric vehicles are comparable in price, hydrogen cars can be refueled quickly — assuming the infrastructure is available — and offer more consistent range in cold weather. But much could hinge on how quickly hydrogen infrastructure develops, as well as how quickly and effectively plug-in electric vehicle makers deal with their own range and charging challenges.
One example of the desire for hydrogen vehicle alternatives comes from DLZ, an engineering, architectural and project management company headquartered in Columbus with offices across the United States as well as in India and Costa Rica. The company has a fleet of about 250 vehicles across the Midwest, including electric vehicles. In 2022, it added six Hyundai hydrogen fuel cell cars for use by professionals from its Columbus office.
“The hydrogen fuel cell vehicles have a lot more consistent performance in range and durability,” especially in cold weather, said Ram Rajadhyaksha, DLZ’s executive vice president. The range for the cars is sufficient for round trips the office’s professionals make to site locations around the state, he explained at the Ohio Fuel Cell & Hydrogen Coalition symposium in North Canton last month.
Hydrogen fuel cell cars aren’t sold in Ohio yet, so DLZ had its six Hyundai vehicles shipped from California to Columbus. Except for the fuel cells, dealers in Ohio can provide any necessary service the vehicles may need, Rajakhyasksha said.
The cars also need a regular source of hydrogen, so DLZ added its own. Its station in Columbus can generate about 20 kilograms of hydrogen per day, using electricity from a solar array atop a large building on company property. A net metering agreement lets DLZ sell any excess electricity from the array to the grid.
Nonetheless, there were hurdles, including permitting, building codes, supply chain issues during the tail end of the pandemic, and even signage codes.
Made in Ohio
While California has been the country’s epicenter for fuel cell vehicles, Honda Motors is now producing the first American-made hybrid hydrogen vehicle at its Marysville plant in Ohio. Its 2025 CR-V e:FCEV model can go roughly 270 miles on a tank of hydrogen. There’s also a small electric battery which provides a driving range of about 30 miles. A 110-volt power outlet on the vehicle can run small home appliances or other equipment.
That range is about the same as Honda’s all-electric Prologue SUV, which also has a comparable list price. But the company believes there is room for both.
“It’s not one or the other,” said Dave Perzynski, assistant manager for hydrogen solutions business development at Honda, who also spoke at the Ohio Fuel Cell & Hydrogen Coalition symposium. “It’s using the right equipment at the right place at the right time.” The CR-V’s electric charging range is about right for his daily round-trip commute, he said, while the fuel cell offers flexibility for longer trips.
Honda’s goal is to achieve 100% decarbonization, Perzynski said. However, limits on local electric grids can make that difficult in some places. “If you can electrify it, if it works, then do that,” he said. “And once that stops working, then thank goodness we’ve been investing in hydrogen for the last 20 years, because there are places and times when you run out of power.”
As a practical matter, the Ohio-made cars’ initial market will be California. For other states, Honda is counting on others to build out the fueling infrastructure.
“The only way we can do that is through a coalition,” Perzynski said. “We can’t build infrastructure alone.”
Building a network
Millennium Reign Energy in Dayton has a membership model to develop hydrogen infrastructure along with the demand for it. Its Emerald H2 network will help customers buy used fuel cell vehicles, while also providing access to hydrogen fueling stations designed and built by the company.
As the number of customers in an area grows, Millennium Reign Energy would swap out the fueling station for one with larger capacity. The smaller station would then go to another location. Access to the stations would be for members only, although members traveling outside their local area could use stations elsewhere.
“Our mission is to build the first transcontinental hydrogen highway,” said CEO Chris McWhinney as he explained the model at the fuel cell program last month. The company’s fueling stations are already operating at places outside the United States, as well as three private facilities in Ohio. The company plans to add its first Emerald H2 network stations in the Dayton area early next year.
The stations use electricity and water to make hydrogen, so using one with a nearby source of solar, wind, hydropower or geothermal energy can provide green energy, versus just moving emissions from tailpipes up to power plants, McWhinney said. That can also bring the cost for the hydrogen fuel down below that of gasoline, he suggested, as renewable electricity continues to get cheaper.
Hurdles ahead
Whether hydrogen-powered passenger vehicles are the best use for renewable energy remains questionable. A study published in Joule last August found battery-electric vehicles were roughly three times more efficient in using renewable electricity than fuel-cell vehicles.
“The battery-electric case is much more efficient than the hydrogen fuel cell vehicle,” said Greg Keoleian, co-director of the University of Michigan’s MI Hydrogen initiative, and one of the co-authors of the Joule study. Ideally, renewable energy will be used efficiently, given the limited amount on the grid now and the urgent need to decarbonize because of climate change, he said.
Battery electric cars also have a much bigger charging network, with nearly 70,000 stations nationwide, Keoleian noted. Cost is also an issue, he added, noting that hydrogen fuel in California currently costs about five times as much as gasoline would to go the same distance.
Henning did note that one of Ohio’s public transit systems, SARTA, the Stark Area Regional Transit Authority, has had hydrogen buses as part of its fleet since 2016. Transit fleets also often need a handful of passenger vehicles, which might be able to use tbuses’ hydrogen fueling station while also qualifying for bulk discounts that may start with the acquisition of five or six vehicles, he said.
The Department of Energy’s recent push for hydrogen hubs might also play an indirect role, suggested Sergey Paltsev, deputy director of the Massachusetts Institute of Technology’s Center for Sustainability Science and Strategy. None of the hub projects so far focus on light-duty vehicles, but infrastructure developed for other purposes could make it easier to develop fueling stations. In that case, the Ohio companies could be angling for a competitive advantage.
Yet much remains unknown about whether the incoming Trump administration will continue incentives begun in the Biden administration, Henning said. The law’s tax credit can apply to fuel cell vehicles with final assembly in North America, which might apply to Honda’s hybrid car — if the Inflation Reduction Act continues.
“I do think there is an appetite and there is a customer base for fuel cell electric vehicles, and I can imagine different use cases where that makes more sense” than an all-electric car, said Grant Goodrich, executive director of the Great Lakes Energy Institute at Case Western Reserve University. Multiple people in Northeast Ohio have expressed reluctance to buy an electric vehicle now, especially given the challenges of harsh winter weather.
Yet the infrastructure for electric vehicles is much farther ahead, and electric vehicle makers continue to work to improve performance. “Will the technology of battery and electric vehicles improve enough to stay ahead of FCEV adoption so that is able to keep that challenge at bay?” Goodrich asked.
Early last month, he would have put money on the EV makers to stay ahead. After hearing the presentations from Honda, Millenium Reign Energy and DLZ, he’s not so sure.
“It’s not a done deal,” Goodrich said, noting that the hydrogen fueling experience also seems to be a more natural replacement for the habits customers have adopted as drivers of vehicles with internal combustion engines. “If it was to roll out faster, I think you could see some competition there.”
Editor’s note: This story was updated to clarify Greg Keoleian’s role.
Emissions from buildings make up about two-thirds of the greenhouse gas footprint of Indianapolis. So when the city committed to slash emissions, in its 2019 climate action plan and then as part of the Bloomberg American Cities Climate Challenge in 2020, leaders knew where they had to start.
A 2021 ordinance requires all buildings over 50,000 square feet and publicly-owned buildings over 25,000 square feet to do energy benchmarking and report results to the city, to be made publicly available by 2026.
The deadline to comply was July 1, 2024. But at year’s end, only about 20% of the 1,500 buildings covered had complied — even though the process can be done in a matter of hours using EPA’s ENERGYSTAR Portfolio manager software. The city also hosted workshops to help walk building managers through the process.
Now the city’s challenge is to boost benchmarking compliance. The penalties for failing to comply are low: fines of $100 the first year and $250 yearly after that. Chicago’s 2013 benchmarking ordinance, by comparison, includes fines of $100 for the first day of a violation and up to $25 each day thereafter, with a maximum fine of $9,200 per year — and the city has a much higher compliance rate.
Lindsay Trameri, community engagement manager for the Indianapolis Office of Sustainability, said the office is continuing outreach, including sending postcards to all relevant building managers and owners.
“We’re not assessing fines yet, but we’re making sure they’re aware this isn’t a city program that’s going away, it is indeed local law,” Trameri said. “And there are benefits to be gleaned from participating. It might cost hundreds of dollars not to participate, but you could save thousands if you participate and take it seriously.”
Trameri said 27 publicly-owned buildings in the consolidated city and county government must be benchmarked, and the city is planning to use about $800,000 worth of federal Department of Energy funding to hire an energy manager “who will be solely focused on looking at city-owned buildings and how to make them more energy efficient.”
In Indiana, reducing buildings’ electricity use is particularly urgent since the state got about 45% of its power from coal in 2023. The benchmarking mandate doesn’t require buildings to take any action based on their energy results, but benchmarking often motivates building owners and municipalities to invest in savings, experts say.
Cities participating in the Bloomberg program saw 3% to 8% energy reductions and millions in savings, with nearly 400 million square feet now covered by benchmarking policies and over 37,000 energy audits completed, according to Kelly Shultz, who leads Bloomberg Philanthropies” sustainable cities initiative.
Success stories
Though overall compliance is low, some major public and private entities have completed benchmarking in Indianapolis, including the airport, convention center, the Indianapolis Museum of Art, Target and JC Penney.
Phil Day, facilities director for the museum, noted that it’s crucial for museums to keep consistent levels of humidity and temperature. That means high energy use, and also vulnerability to blackouts or energy price spikes. Benchmarking has helped him develop plans for reducing natural gas and electricity use with smaller boilers and heat pumps distributed throughout the facilities, a possible geothermal chilling system, and better insulation. These innovations should save money and make the museum more resilient to energy disruptions.
“Museums aren’t typically known as an energy efficient facility, but it is always high on my priority list in everything we program or replace,” Day said.
The firm Cenergistic has done benchmarking since 2017 for Indianapolis Public Schools, and identified more than $1 million in wasteful energy costs that could be cut across 71 schools. Under Cenergistic’s contract, it is paid half of the energy savings it secures. Seventeen school buildings have obtained EPA Energy Star status based on their energy efficiency improvements, Cenergistic CEO Dennis Harris said.
“Benchmarking provided a clear starting point by identifying high-energy-consuming facilities and systems,” Harris said. “Cenergistic energy specialists track energy consumption at all campuses with the company’s software platform, identifying waste and driving conservation. By consistently reviewing this data, Cenergistic continues to work with IPS to make data-driven decisions, set measurable goals, and continually refine its strategy for maximum impact.”
Trameri said the schools’ success is “a great message to point to. If they can do it, we can do it. Of course, we want those millions to go back into classrooms and teachers and students versus out the door for utility costs.”
Learning by example
Trameri said in developing its benchmarking program and ordinance, Indianapolis has relied on guidance and lessons from other cities including Columbus, Ohio and Chicago, both fellow participants in the Bloomberg challenge.
In Chicago, about 85% of the 3,700 buildings covered by the ordinance are in compliance, said Amy Jewel, vice president of programs at Elevate, the organization that oversees Chicago’s program. She said nine out of 10 buildings complied even right after the ordinance took effect, thanks to years of organizing by city leaders and NGOs like the Natural Resources Defense Council.
“A large number of building owners recognized this was coming. They engaged in the process, and saw their fingerprints within the ordinance,” said Lindy Wordlaw, director of climate and environmental justice initiatives for the city of Chicago.
Chicago passed an additional ordinance creating an energy rating program, where buildings receive a score of 0 to 4 based on their energy benchmarking results. An 11-by-17-inch placard with the score and explanation must be publicly posted, “similar to a food safety rating for a restaurant,” Wordlaw said.
In 2021, Chicago reported that median energy use per square foot had dropped by 7% over the past three years, and greenhouse gas emissions had dropped 37% since 2016 in buildings subject to the ordinance. City public housing and buildings owned by the Archdiocese were among those to do early benchmarking and investments.
Along with Philadelphia, New York and Washington D.C., Chicago was among the nation’s first major cities to institute benchmarking. Jewel said they hope to keep sharing lessons learned.
For example, “it’s actually pretty hard to come up with the covered buildings list,” Jewel noted, since there is no central list of all buildings in a city but rather various records “all used for slightly different purposes — the property tax database, different sources tracking violations. It took a bit of time to get that list together, and it takes time to maintain it as buildings are constructed or demolished.”
In Indianapolis, Trameri said they are hopeful more buildings will get with the program as awareness grows about the requirement.
“There has always been evidence that you can’t manage what you don’t measure,” said Trameri. “It’s a market-based strategy. Truly once a facilities owner or manager is able to look at their energy usage over a month, 12 months, or multiple years and make evidence-based decisions based on that data, it will affect your bottom line, and those savings you can reinvest into whatever your organization’s mission is.”
Correction: An earlier version of this story misattributed performance information about Bloomberg Philanthropies’ sustainable cities initiative.
Amid a surge in utility shutoffs, and in the face of a groundbreaking study finding racial disparities in those outcomes, Minnesota’s largest utility is taking a closer look at the issue.
In a November agreement with consumer groups and the state’s Public Utilities Commission, Xcel Energy has outlined a series of steps to provide more information to customers and make it easier for them to restore service.
Xcel also agreed to hire an outside consultant to conduct a one-year study of disparity issues related to disconnections and outages and, separately, do its own analysis of outages. The move came in response to a University of Minnesota study released earlier this year that found that people of color were more likely than White households to have their service disconnected for falling behind on bills, even when controlling for income and home ownership status.
The agreement falls short of a demand from the Minnesota Attorney General’s Office for Xcel to institute a temporary moratorium on shutoffs until racial disparities are addressed, based on a recommendation from Fresh Energy and a coalition formed by Cooperative Energy Futures, Environmental Law & Policy Center, Sierra Club, and Vote Solar.
Erica McConnell, staff attorney for the Environmental Law & Policy Center, represented the clean energy organizations advocating for grid equity. She supported the agreement but believes it will do little to help reduce disparities in shutoffs.
“These are very important improvements that don’t really address — and the commission didn’t discuss — the disparate impacts and the racial disparity (of disconnections) and how to address that specifically,” she said.
A temporary moratorium on disconnections would have allowed for time to study disparities and find ways to address them.
“The commission didn’t talk about that,” McConnell said. “They didn’t address it at all, so that was disappointing. I understand it’s uncomfortable and it’s a tough issue, but it’s disappointing they shied away taking it head on.”
Shutoffs soaring
Beyond the challenge of disparities, Xcel’s number of service disconnections has skyrocketed. More than 45,000 Xcel customers saw their power shut off this year, a number that has grown significantly over the last two decades.
Xcel agreed to many proposals from the Citizens Utility Board of Minnesota, the Energy CENTS Coalition, clean energy organizations and the Public Utilities Commission to create more consumer protection against shutoffs.
Xcel Energy’s involuntary disconnection notices began rising significantly in 2023 before skyrocketing in 2024, when shutoffs doubled the prior year’s total for May through July. Despite Minnesota’s cold weather protection rules that limit disconnections during the winter through April 30, shutoffs even grew during the winter months.
This chart, based on Xcel Energy data and submitted by consumer and clean energy groups to the Minnesota Public Utilities Commission, shows a sharp increase in utility shutoffs in 2023 and 2024, which the groups attribute to the utility’s new ability to use smart meters to disconnect customers remotely. Credit: Minnesota PUC Docket E002/M-24-27
Clean energy and consumer organizations point to Xcel’s ability to remotely disconnect customers who have smart meters as a major reason for the shutoffs, along with inflation, escalating rate increases and challenging repayment requirements. Xcel had demanded customers pay 50% of what they owe to reconnect, which may have violated Minnesota law, according to the Citizens Utility Board.
Xcel’s pact with the Citizens Utility Board and Energy CENTS “is going to make payment agreements more affordable and hopefully help households that are behind on their bills avoid getting shut off and get caught back up,” said Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota.
The utility board and Energy CENTS Coalition forged the agreement with Xcel under the purview of the Public Utilities Commission, which will issue a final order later. The agreement requires the following:
Customers will pay 10% of what they owe to have the power turned back on, instead of 50%.
The amount due will have to be at least $180 before Xcel can send a disconnect notice.
Xcel cannot shut off power until a customer reaches a $300 past due balance. Xcel’s data from this year showed disconnected customers were $441 in arrears on average in October and much higher in other months.
The utility must wait at least 10 days after a shutoff notice has been sent to disconnect, up from five days.
Xcel must post clear disconnection and payment policies on its website, along with information about customers’ right to develop an affordable repayment plan. Any changes Xcel makes to shutoff policies and repayments have to be reported to the commission, and it must collect data on repayments and customer agreements.
A variance allowing remote disconnections without field visits from Xcel remains, but the utility must contact customers via voicemail and use at least one other form of electronic communication.
Xcel spokesperson Kevin Coss said the utility believes “this agreement is a great step toward reducing disconnections for some of our customers who continue to struggle economically.”
Options for customers
George Shardlow, Energy CENTS executive director, said he thought a clearer explanation of the disconnection process on Xcel’s website brings a transparency that had been lacking.
“I don’t think the average person even knows that they have a right to negotiate when they’re struggling to pay their bills,” he said. “It’s all sort of opaque. We’re excited to see better documentation of people’s rights on Xcel’s website.”
Minnesota law says utility customers are “entitled” to a payment plan they can afford, Shardlow said. Customers who cannot afford the 10% down payment can still negotiate for a settlement that fits their budget, he added.
Shutoffs have been growing. This year Xcel sent disconnection notices to 51,000 customers in January and 71,000 in July. But not all notices result in shutoffs. The highest month for disconnections, May, saw more than 10,000 shutoffs. By August, slightly more than 8,400 customers had been disconnected.
Coss said Xcel works with customers to avoid disconnection by starting a nine-week process of contacting them through multiple channels to “point them to available options for energy assistance — both through the federal Low Income Home Energy Assistance Program and our own affordability programs — and offer flexible payment plans tailored to their circumstances.”
Minnesota also has cold weather protections that greatly reduce utilities’ ability to disconnect customers in winter months. But people who fail to pay their bills in winter see their balances grow, leading to higher disconnections in summer when they fail to catch up.
Xcel agreed to monitor progress and collect more data on racial disparities involving customers involuntarily shut off. The utility has already hired a third party evaluator, as the agreement requires, to study its shutoff policies and hold stakeholder engagement meetings during the year-long process.
Coss said disparities result in inequities throughout society and Xcel has been doing its part to address them. The utility has worked with the study’s authors and advocacy groups to identify actions to reduce disparities, he said.
Earlier this year, the commission also approved a proposal by Xcel for a pilot program that will provide bill credits to select census tracts with high levels of disconnections. Coss said Xcel will provide $500 bill credits to customers in low-income census areas who have a greater than $2,000 past-due balance, using money available from a quality of service program.
Minnesota Public Utilities Commissioner Joe Sullivan said he believed the agreement negotiated among the nonprofits and utility would reduce the financial strain on households facing disconnections and assist Xcel in recovering debt.
“I thought that in that docket people came together and were constructive,” he said. “I feel like I’m hopeful that the order will make some progress.”
PUC Chair Katie Sieben said the commission is “always looking at affordability, and especially as it pertains to low-income customers, I think we have a great track record on working with stakeholders and with utilities to provide robust low-income assistance to customers.”
She mentioned the commission’s role in approving an Xcel pilot to decrease payments for low-income, low-usage customers and a September decision that used a penalty for the utility’s service quality underperformance to provide bill credits to around 1,000 customers with the oldest outstanding balances in low-income census tracts.
‘Still more work to do’
The agreement does not solve the problem of low-income customers struggling to pay utility bills. Shardlow said Energy CENTS and the Citizens Utility Board lobbied the state legislature to allow households to apply for energy assistance funding the entire year instead of the current policy of having a deadline of May 31. Only 20% of eligible Minnesota households participate in the program, he said.
Levenson-Falk wants Xcel to consider eliminating the 1.5% late fee it charges customers on their balance, or consider donating the money to affordability programs.
The Citizens Utility Board also wants Xcel to develop a plan to reconnect customers quickly on days of high heat or poor air quality. Coss said Xcel will evaluate reconnecting customers disconnected during days of air quality alerts.
Levenson-Falk said the agreement at least makes progress. “I think we resolved everything that we had discussed with Xcel but that’s not to say that we think this is going to solve the problem, because, of course, there are still going to be continuing shutoffs, and those are still very concerning,” she said. “There’s still more work to do.”
This story was updated to include a statement from Minnesota Public Utilities Commission Chair Katie Sieben.
Fresh Energy staff, board members and funders do not have access to or oversight of the Energy News Network’s editorial process. More about our relationship with Fresh Energy can be found in our code of ethics.
Living in a net-zero home is often a luxury for those who can afford solar panels, state-of-the-art HVAC and other innovations and renovations.
But lower-income people are those who could benefit most from energy cost savings, and those who suffer most from extreme climate. Milwaukee is trying to address this disconnect by building net-zero homes for low-income buyers in partnership with Habitat for Humanity, a marquee project of the city’s 2023 Climate and Equity Plan.
In September, the U.S. Department of Energy announced a $3.4 million grant that will go toward Milwaukee’s construction of 35 homes on vacant lots in disadvantaged neighborhoods and the opening of a factory to make wall panels for net-zero manufactured homes.
City leaders have found the undertaking more challenging than expected, especially on the factory front. But they hope overcoming roadblocks will help create a new local and regional market for energy-efficient, affordable prefabricated homes, while also training a new generation of architects in the sector through partnership with the University of Wisconsin-Milwaukee School of Architecture and Urban Planning.
“It remains an ambitious project,” said Milwaukee environmental sustainability director Erick Shambarger. “We’re trying to support equity, climate, new technology, manufacturing. It takes some time, but we’re excited about it and looking forward to making it a success.”
Panelized, prefabricated homes can be built relatively cheaply, but making them highly energy efficient is a different story. A handful of small companies nationwide make the wall panels used in such construction to highly energy-efficient standards, but transporting the panels is expensive and creates greenhouse gas emissions.
The city sought a local manufacturer, but an initial request for proposals yielded no viable candidates. Now the city and UWM professors are working with the Rocky Mountain Institute to convince a qualified company to open a site in Milwaukee to make energy-efficient panelized home components at commercial scale, for both the city and private customers.
“It’s such a great fit for Milwaukee,” said Lucas Toffoli, a principal in RMI’s carbon-free buildings program. “It’s a city that has a very strong blue-collar tradition, so the idea of bringing back some manufacturing, and leveling up the home-building capacity of the city feels very congruent with the spirit of Milwaukee.”
And panelized homes could be a cornerstone of affordable, energy-efficient housing nationwide if the sector was better organized and incentivized, RMI argues — a goal that Milwaukee could help further.
“Local action always drives a message in a way that federal action doesn’t,” Toffoli said. “It will be even more important under the incoming presidential administration and Congress. Having this project getting started at the local level in an important Midwestern city is a way to help ensure that progress continues at some level, even if it’s less of a priority at the federal level.”
Panel problems
Habitat for Humanity builds its own panels in its Milwaukee warehouse, and is working on an energy-efficient panelized design that it hope will yield the first net-zero affordable homes in 2025. Milwaukee has yet to select a developer for the DOE-funded program, but Milwaukee Habitat was a partner in the DOE grant and CEO Brian Sonderman said the organization is hopeful it will be chosen during an RFP process.
Single-family homes are typically “stick built” from the ground up, with 2×4 or similar boards forming a skeleton and then, one by one, walls. Panelized homes involve walls transported intact to the site.
Milwaukee Habitat for Humanity often uses a hybrid method wherein walls are “stick built” laying on their side in the Habitat warehouse, and then brought to the site where volunteers help assemble the new house.
There are various other methods of making panels that don’t involve lumber, UWM Associate Professor Alexander Timmer explained, and making these models highly energy efficient is still an emerging and decentralized field.
“It’s the chicken-or-the-egg problem in some sense,” Timmer said, since component manufacturers don’t know if there’s a market for energy-efficient panelized homes, and developers don’t build the homes because few component suppliers exist.
Wall panels can involve two sheets of plywood with insulation in between, or a steel interior surrounded by rigid insulation, among other models.
“With 2x4s, any small crew can build a home,” said Timmer. “With panelized, you need a factory, specialized tools, specialized knowledge. The hope is we are graduating architects into the market who know these technologies and techniques, and can design them to high energy efficiency standards. The city needs architects and builders who want to do these things and feel comfortable doing them.”
Toffoli touted the benefits of net-zero homes beyond the carbon emissions and utility bill savings.
“There’s less draftiness, greater comfort throughout the whole home,” said Toffoli. “In addition to making the heater run less to warm the air, there’s a big comfort benefit and acoustic benefit,” with little noise or pollutants filtering into the well-sealed home.
“In the middle of a severe Wisconsin winter storm, [if] power goes out for everyone, you have a home that can basically ride through harsh conditions passively much better,” Toffoli added.
Toffoli said examples in Pennsylvania and Massachusetts show panelized, highly energy-efficient homes can be built at costs not much greater than standard market panelized homes. A different design, including thinner studs and more insulation, means less heat or cold is transported from the outside in. Insulation and highly efficient windows cost more than market rate, but smaller appliances can be used because of the efficiency, helping to mitigate the cost increase.
He said mass production of net-zero panelized homes is much more efficient and cost-effective than stick-built energy-efficient homes.
“You don’t need to, every time, find a contractor who understands the proper sequence of control layers for a very high-performance wall,” Toffoli said. “It’s been done in part in a factory where they’re plugging and chugging on a design that’s been validated and repeated.”
The DOE grant includes $1 million for Milwaukee to incentivize construction of the panel factory, $40,000 each toward 25 homes, plus funds for administration and other costs. Shambarger said $40,000 per home will cover the construction cost difference between an affordable home that merely complies with building codes, and one that is net-zero – meeting federal standards with a highly efficient envelope, an electric heat pump and solar panels.
Shambarger noted that the city funding and business will not be enough to motivate a company to build a new factory in Milwaukee.
“Any company is going to have to have a customer base” beyond the city orders, Shambarger said. “We’ll have to make sure other housing developers like the product that companies have, that it’s cost effective. One of the things we learned the first time around is most of the developers really didn’t understand how to do net-zero energy. We want to make sure the product we select fits within Milwaukee neighborhoods, will work in our climate, has buy-in from the community.”
Local jobs would be created by the factory, which is slated to be in Century City, the neighborhood with the most vacant manufacturing space.
“Overall with the climate and equity plan, we are trying to create good-paying jobs that people want,” Shambarger said. “That often means the trades. One of the things attractive about building housing components in a factory is it offers steady year-round employment, rather than having to go on unemployment for the winter,” as many building tradespeople do.
Creating Habitat
Sonderman said that in the past, Milwaukee Habitat has put solar on some homes, but little else specifically to lower energy costs.
“Clearly if there was a really substantial market for developers who were interested and willing to do this work, the reality is Habitat wouldn’t be the first call,” he said. “It’s something new. One of the things we’re looking forward to is sharing with our Habitat network in the state and other developers and builders, so we build some confidence this can be done efficiently and cost-effectively.”
Net-zero homes are not only a way to fight climate change, but an environmental and economic justice issue in predominantly Black neighborhoods scarred by redlining and disinvestment, where the majority of residents are renters, Sonderman added.
“Even for the individuals who don’t live in that home but live in the neighborhood, it breathes hope, it says that our neighborhood is being invested in,” Sonderman said. “That matters deeply for the residents of Lindsay Heights, Harambee, Midtown and elsewhere. To take a project like this and see it come to fruition has tremendous ripple effect in a positive way.”
Several other Habitat chapters nationwide are building net-zero homes, including in Colorado, Illinois and Oregon.
Milwaukee Habitat is planning to build 34 homes in 2025 and up to 60 homes annually by 2028. Sonderman said they will make as many as possible net-zero.
“We’re not in a capacity to be the full-scale factory [Shambarger] was envisioning,” he said. “But we believe we’ll be able to supply the walls we need to build dozens and dozens of net-zero homes in the future.”
Massive data centers used for cloud computing and artificial intelligence are consuming enormous amounts of energy, and developers are eyeing South Dakota as a potential location, regulators say.
These “hyperscale data centers,” or “hyperscalers,” are designed to handle immense computing demands and are often operated by tech giants. The centers are characterized by their large size — often tens of thousands of square feet — and thousands of computer servers that require significant energy to operate.
Nick Phillips with Applied Digital in Texas, a developer of the centers, highlighted South Dakota’s appeal: a cold climate that cuts down on cooling a room full of hot servers, and abundant wind energy that’s considered one of the most cost-effective renewable energy sources, which can help keep operating costs down.
State regulators are not aware of any hyperscale data centers currently operating in South Dakota.
“There isn’t a requirement to report hyperscale data centers to the commission, so we don’t have a formal method to track that information,” said Leah Mohr with the Public Utilities Commission.
Commissioner Kristie Fiegen noted that the state’s largest proposed data center is a 50-megawatt facility in Leola.
“We don’t know what’s coming,” she said. “But the utilities are getting calls every week from people trying to see if they have the megawatts available.”
The commission recently hosted a meeting in Pierre with representatives from regional utilities, regional power grid associations and data centers. The goal was to understand the emerging demands and facilitate an information exchange.
Bob Sahr, a former public utilities commissioner and current CEO of East River Electric Cooperative in Madison, emphasized the scale of energy needed.
“We’re talking loads that eclipse some of the largest cities in South Dakota,” he said.
A single data center campus can require anywhere from 300 to 500 megawatts of electricity to operate. One megawatt can power hundreds of homes. By one estimate, there are over 1,000 hyperscalers worldwide, with the U.S. hosting just over half of them.
Ryan Long, president of Xcel Energy, headquartered in Minneapolis, illustrated the extreme nature of the demand.
“We now have, I would say, north of seven gigawatts of requests across the Xcel Energy footprint for data centers to locate in one of our eight states,” he said. “And I’ll be very frank that there’s no way that we’re going to be able to serve all of that in a reasonable amount of time.”
Protecting existing customers from potential costs or energy shortages is another shared concern. Utility representatives emphasized the need for coal and natural gas to maintain a reliable “base load” when renewable sources like wind and solar are unavailable. Arick Sears of Iowa-based MidAmerican Energy underscored the point, noting that costs for each data center should depend on how much energy it consumes.
“We need to ensure that large-scale energy users are paying their fair share,” he said.
Utilities also flagged the risk of “stranded costs,” referring to a data center ceasing operations, leaving a utility with added infrastructure to meet a demand that no longer exists. They said financial safeguards will need to be written into power agreements with hyperscalers.
Speed of deployment is another pressing issue. Representatives from Montana-Dakota Utilities, headquartered in North Dakota, and NorthWestern Energy, headquartered in Sioux Falls, noted that some facilities expect to be operational within months of making a deal, straining infrastructure, planning and resources.
Grid managers Brian Tulloh of Indiana-based Midcontinent Independent System Operator and Lanny Nickell of Arkansas-based Southwest Power Pool echoed those concerns. They warned that data center growth is outpacing the grid’s ability to meet demand and cautioned against decommissioning coal power plants too quickly. Setting aside how much it would cost to produce the required energy, Tulloh estimated that MISO needs $30 billion in electric transmission infrastructure to support the demand from hyperscalers.
“The grid wasn’t designed for that,” Public Utilities Commissioner Chris Nelson told South Dakota Searchlight after the meeting.
Nelson was glad to hear the data centers will include backup generators, similar to hospitals, for power outages or when homes need prioritization. He said some even aim to have huge batteries to power the plant until the generators get going. They would consume massive amounts of diesel and natural gas until the outage is over.
Nelson said all of this makes modern nuclear energy facilities more attractive. He said few alternative “base load” options remain, and the public has little appetite for ramping up coal power.
NorthWestern Energy is exploring the possibility of constructing a small nuclear power plant in South Dakota, with an estimated cost of $1.2 billion to $1.6 billion for a 320-megawatt facility. The plant would be the first in the state since a test facility near Sioux Falls in the 1960s.
The company is conducting a study, partially funded by the Department of Energy. Details about the study and potential plant sites remain confidential.
Additionally, South Dakota’s Legislature has shown interest in nuclear energy, passing a resolution for further study on the topic that led to the publication of an issue memorandum by the Legislative Research Council.
A new contract between Kalamazoo, Michigan, and utility Consumers Energy signals a change in direction for the city’s clean energy strategy as it seeks to become carbon neutral by 2040.
Solar was seen as a pillar of the city’s plans when it declared a climate emergency in 2019 and set a goal of zeroing out carbon emissions by 2040. After spending years exploring its options, though, the Michigan city is tempering a vision for rooftop solar in favor of large, more distant solar projects built and owned by the utility. It’s not alone either, with Grand Rapids, Milwaukee, Muskegon and other cities taking a similar approach.
“Folks want to see solar panels on parking lots and buildings, but there’s no way as a city we can accomplish our net-zero buildings just putting solar panels on a roof,” said Justin Gish, Kalamazoo’s sustainability planner. “Working with the utility seemed to make the most sense.”
Initially there was skepticism, Gish said — “environmentalists tend to not trust utilities and large corporate entities” — but the math just didn’t work out for going it alone with rooftop solar.
The city’s largest power user, the wastewater treatment station, has a pumping house with a roof of only 225 square feet. Kalamazoo’s largest city-owned roof, at the public service station, is 26,000 square feet. Spending an estimated $750,000 to cover that with solar would only provide 14% of the power that building uses annually — a financial “non-starter,” he said.
So the city decided to partner with Consumers Energy, joining a solar subscription program wherein Kalamazoo will tell Consumers how much solar energy it wants, starting in 2028, and the utility will use funds from its subscription fee to construct new solar farms, like a 250 MW project Consumers is building in Muskegon.
Under the 20-year contract, Kalamazoo will pay a set rate of 15.8 cents per kWh — 6.4 cents more than what it currently pays — for 43 million kWh of solar power per year. If electricity market rates rise, the city will save money, and Kalamazoo receives Renewable Energy Credits (RECs) to help meet its energy goals.
The subscription is expected to eliminate about 80% of Kalamazoo’s emissions from electricity, Gish said. The electricity used to power streetlights and traffic signals couldn’t be covered since it is not metered. As the city acquires more electric vehicles — it currently has two — electricity demand may increase, but city leaders hope to offset any increases by improving energy efficiency of city buildings.
Consumers Energy spokesperson Matt Johnson said the company relies “in part” on funds from customers specifically to build solar, and considers it a better deal for cities than building it themselves, “which would be more costly for them, and they have to do their own maintenance.”
“We can do it in a more cost-effective way, we maintain it, they’re helping us fund it and do it in the right way, and those benefits get passed on to arguably everybody,” Johnson said.
Grand Rapids, Michigan, joined the subscription program at the same time as Kalamazoo. Corporate customers including 7-Eleven, Walmart and General Motors are part of the same Consumers Energy solar subscription program, as is the state of Michigan.
Costs and benefits
“There’s a growing movement of cities trying to figure out solar — ‘Yes we want to do this, it could save us money over time, but the cost is prohibitive,’” said John Farrell, co-director of the Institute for Local Self-Reliance.
Until the Inflation Reduction Act, cities couldn’t directly access federal tax credits. The direct-pay incentives under the IRA have simplified financing, Farrell said, but cities still face other financial and logistical barriers, such as whether they have sufficient rooftop space.
Advocates acknowledge deals with utilities may be the most practical way for budget-strapped cities to move the needle on clean energy, but they emphasize that cities should also strive to develop their own solar, and question whether utilities should charge more for clean power that is increasingly a cheaper option than fossil fuels.
“Our position is rooftop and distributed generation is best — it’s best for the customers, in this case the cities; it’s best for the grid, because you’re putting those resources directly on the grid where it’s needed most; and it’s best for the planet because it can deploy a lot faster,” said John Delurey, Midwest deputy director of the advocacy group Vote Solar. “I believe customers in general and perhaps cities in particular should exhaust all resources and opportunities for distributed generation before they start to explore utility-scale resources. It’s the lowest hanging fruit and very likely to provide the most bang for their buck.”
Utility-scale solar is more cost-effective per kilowatt, but Delurey notes that when a public building is large enough for solar, “you are putting that generation directly on load, you’re consuming onsite. Anything that is concurrent consumption or paired with a battery, you are getting the full retail value of that energy. That is a feature you can’t really beat no matter how good the contract is with some utility-scale projects that are farther away.”
Delurey also noted that Michigan law mandates all energy be from clean sources by 2040; and 50% by 2030. That means Consumers needs to be building or buying renewable power, whether or not customers pay extra for it.
“So there are diminishing returns [to a subscription deal] at that point,” Delurey said. “You better be getting a price benefit, because the power on their grid would be clean anyways.”
“Some folks are asking ‘Why do anything now? Just wait until Consumers cleans up the grid,’” Gish acknowledged. “But our purchase shows we have skin in the game.”
A complement to rooftop
In 2009, Milwaukee adopted a goal of powering 25% of city operations — excluding waterworks — with solar by 2025. The city’s Climate and Equity Plan adopted in 2023 also enshrined that goal.
For a decade, Milwaukee has been battling We Energies over the city’s plan to install rooftop solar on City Hall and other buildings through a third-party owner, Eagle Point Solar. The city sought the arrangement — common in many states — to tap federal tax incentives that a nonprofit public entity couldn’t reap. But We Energies argued that third party ownership would mean Eagle Point would be acting as a utility and infringing on We Energies’ territory. A lawsuit over Milwaukee’s plans with Eagle Point is still pending.
In 2018, We Energies launched a pilot solar program in Milwaukee known by critics as “rent a roof,” in which the utility leased rooftop space for its own solar arrays. Advocates and Milwaukee officials opposed the program, arguing that it encouraged the utility to suppress the private market or publicly-owned solar. In 2023, the state Public Service Commission denied the utility’s request to expand the program.
Wisconsin Citizens Utility Board opposed the rent-a-roof arrangement since it passed costs they viewed as unfair on to ratepayers. But Wisconsin CUB executive director Tom Content said the city’s current partnership with We Energies is different, since it is just the city, not ratepayers, footing the cost for solar that helps the city meet its goals.
Solar panels atop Milwaukee’s Central Library. Credit: City of Milwaukee
Milwaukee is paying about $84,000 extra per year for We Energies to build solar farms on a city landfill near the airport and outside the city limits in the town of Caledonia. The deal includes a requirement that We Energies hire underemployed or unemployed Milwaukee residents.
The Caledonia project is nearly complete, and will provide over 11 million kWh of energy annually, “enough to make 57 municipal police stations, fire stations, and health clinics 100% renewable electricity,” said Milwaukee Environmental Collaboration Office director Erick Shambarger.
The landfill project is slated to break ground in 2025. The two arrays will total 11 MW and provide enough power for 83 city buildings, including City Hall – where Milwaukee had hoped to do the rooftop array with Eagle Point.
Meanwhile Milwaukee is building its own rooftop solar on the Martin Luther King Jr. library and later other public buildings, and Shambarger said they will apply for direct pay tax credits made possible by the Inflation Reduction Act — basically eliminating the need for a third-party agreement.
“Utility-scale is the complement to rooftop,” said Shambarger. “They own it and maintain it, we get the RECs. It worked out pretty well. If you think about it from a big picture standpoint, to now have the utility offer a big customer like the city an option to source their power from renewable energy — that didn’t exist five years ago. If you were a big customer in Wisconsin five years ago, you really had no option except for buying RECs from who knows where. We worked hard with them to make sure we could see our renewable energy being built.”
We Energies already owns a smaller 2.25 MW solar farm on the same landfill, under a similar arrangement. Building solar on the landfill is less efficient than other types of land, since special mounting is needed to avoid puncturing the landfill’s clay cap, and the panels can’t turn to follow the sun. But Shambarger said the sacrifice is worth it to have solar within the city limits, on land useful for little else.
“We do think it’s important to have some of this where people can see it and understand it,” he said. “We also have the workforce requirements, it’s nice to have it close to home for our local workers.”
Madison is also pursuing a mix of city-owned distributed solar and utility-scale partnerships.
On Earth Day 2024, Madison announced it has installed 2 MW of solar on 38 city rooftops. But a utility-scale solar partnership with utility MGE is also crucial to the goal of 100% clean energy for city operations by 2030. Through MGE’s Renewable Energy Rider program, Madison helped pay for the 8 MW Hermsdorf Solar Fields on a city landfill, with 5 MW devoted to city operations and 3 MW devoted to the school district. The 53-acre project went online in 2022.
Farrell said such “all of the above” approaches are ideal.
“The lesson we’ve seen generally is the more any entity can directly own the solar project, the more financial benefit you’ll get,” he said. “Ownership comes with privileges, and with risks.
“Energy is in addition to a lot of other challenging issues that cities have to work on. The gold standard is solar on a couple public buildings with battery storage, so these are resiliency places if the grid goes down.”
Correction: Covering Kalamazoo’s public service station roof with solar panels would provide an estimated 14% of power used by that building. An earlier version of this story mischaracterized the number.
Community and environmental justice advocates say the Biden administration is failing to deliver promised transparency and public engagement around its $7 billion clean hydrogen hub initiative.
“Engagement isn’t merely leading people into a process that’s going to happen with or without them,” said Tom Torres, hydrogen program director for the Ohio River Valley Institute, a nonprofit serving one of the regions where federally funded partnerships are trying to lay the groundwork for new local hydrogen economies. “It means meaningfully involving people in the decisions about the project.”
The U.S. Department of Energy announced funding in October 2023 for seven regional clean hydrogen hubs — clusters of interconnected projects meant to kickstart production of the fuel with little or no greenhouse gas emissions. Since then, the department has held online briefings and virtual listening sessions for each hub, but advocates say they are not getting the kind of information necessary to assess who will be impacted by the projects and how.
Torres and others say they want more than just dots on a map. They want to know how hydrogen will be produced, how it will be used, and how it will get to end users. For projects that depend on carbon capture, they want to know how and where the carbon will be captured, transported and stored. And once the specifics are known, they want a chance to have meaningful input on the final projects.
Spokespeople for the Department of Energy and regional hubs said the answers to those questions are still being worked out and that more engagement is on the horizon. Advocates are increasingly frustrated and fear that community input will come too late to affect how the hubs are developed.
“It doesn’t make sense … on one hand to say there’s not enough on paper to tell the public about, but on the other hand there is enough to allocate almost $1 billion for these companies,” Torres said.
Are events just ‘checking a box’?
When burned as a fuel source, hydrogen does not emit carbon dioxide, but its production today almost always comes from fossil fuels. Some see a potential for hydrogen to replace natural gas in certain hard-to-electrify sectors such as industry or heavy duty transportation, but the benefits for addressing climate change hinge on whether it can be produced cleanly and at scale.
The Biden administration’s hydrogen hub program, part of the 2021 Bipartisan Infrastructure Law, aims to ramp up production of hydrogen made with low-carbon energy, including renewables, nuclear power, and fossil fuels paired with carbon capture.
“It is literally like building the natural gas infrastructure that we have all over the place again for hydrogen,” said Shawn Bennett, energy and resilience manager for Battelle, the project manager for the Appalachian Regional Hydrogen Hub, ARCH2, which includes projects for Ohio, West Virginia and Pennsylvania. A majority of its projects will use steam methane reforming to make hydrogen from natural gas, along with carbon capture and storage. Other projects in the hub plan to make hydrogen from waste gases or from electrolysis, which uses energy to split water molecules.
In May, dozens of groups urged the Department of Energy to suspend funding discussions for the ARCH2 project until the public receives detailed information beyond general maps and short project descriptions. On July 31 the Department of Energy formally committed the first $30 million of federal funding to ARCH2, with a total of up to $925 million to be spent over the next decade or so.
Last month, the Department of Energy committed up to $1 billion for the Midwest Alliance for Clean Hydrogen, MachH2, which spans Illinois, Indiana, Michigan and Iowa and plans to produce hydrogen from a mix of nuclear power, wind energy and natural gas. The department will hold a December 9 briefing on MachH2.
In response to the Energy News Network’s questions about community groups’ complaints about a lack of outreach, a Department of Energy spokesperson provided a statement saying it “has been actively engaged with these communities in support of the economic playbook” of the Biden-Harris administration.
The ARCH2 project held a community outreach session in West Virginia in November, and additional meetings will be held in Ohio and Pennsylvania early next year, Bennett said. Some community group members protested outside at the West Virginia session but then came inside for a good discussion, he added.
Torres said there was no general presentation at the West Virginia meeting, and company representatives were present for only a handful of the hub’s projects. Even then, project information was still sparse.
“It wasn’t an opportunity for people’s voices to be heard,” he said. “What is the value of these events other than checking a box for these companies?”
Advocacy groups focusing on the MachH2 project said months went by without getting updates or details. Then last month, they got less than 24 hours’ notice for a briefing with general descriptions about the MachH2 hub projects.
During that session, representatives for the Department of Energy said a decision on the hub’s funding commitment would come soon, “probably next week sometime,” said Susan Thomas, the legislative and policy director and communications manager for Just Transition Northwest Indiana. Minutes after the November 20 session ended, the Department of Energy announced the MachH2 funding commitment.
“Our jaws were on the table,” Thomas said.
Details remain to be worked out
Groups have been trying to get answers from the Department of Energy for more than a year, said Chris Chyung, executive director of Indiana Conservation Voters. In his view, the agency’s approach “is just flouting the law.” According to the Department of Energy’s website, engagement with communities and labor is a key principle required in hubs’ community benefits plans, which are part of hubs’ contractual obligations for funding.
Community groups learned in the November 20 briefing that the MachH2 community engagement would not address concerns related to any pipelines associated with the hub. Instead, those would be handled by a separate office within the Department of Energy.
But a pipeline for northwestern Indiana “is absolutely part and parcel of [a] dirty hydrogen project that is part of MachH2,” and the community should get a say on it, said Lauren Piette, an attorney with Earthjustice, which does not consider hydrogen made with natural gas to be climate-friendly, even with carbon capture.
The Department of Energy spokesperson did not respond to the Energy News Network’s question about how community benefits for hub projects can fully be assessed if they don’t include consideration of issues and input related to necessary pipelines.
Representatives of the MachH2 and ARCH2 hubs who spoke at an Ohio Fuel Cell & Hydrogen Consortium program last month said they couldn’t practically engage in community outreach until funding commitments had been negotiated with the Department of Energy. Until then, it wasn’t certain whether each hub would move forward.
Also, as a practical matter, “there was no budget for these things,” Bennett said. Details for each hub’s projects are still being worked out, and ARCH2 is still trying to add additional project partners.
Even then, details for projects won’t be finalized until review under the National Environmental Policy Act, according to Neil Banwart, who is the chief integration officer for the MachH2 hub and also the managing director for hydrogen at Energy Systems Network.
“It’s not a certainty that all of the projects will get built in the locations that we shared on a map,” he said.
Chyung said he felt the comments about funding were “a complete dodge on behalf of these extremely wealthy national corporations that have said since 2023 they were eager to get started on community outreach.”
A new report from Union of Concerned Scientists pushes for wetland protections in a new Farm Bill. (Photo courtesy of USDA)
A new report from the Union of Concerned Scientists found wetlands in the Upper Midwest region are “in peril” due to recent legal challenges and a lack of state-level regulation. The report looks to a new farm bill as a vessel to protect wetlands.
The report, authored by Stacy Woods, the research director for the Food & Environment program at the Union of Concerned Scientists, said industrial agriculture has inflicted “devastating damage” on wetlands across the country and that Iowa has more than 640,000 acres of wetland.
These wetlands, along with those in states across the Upper Midwest region, act as “natural barriers” to flooding. The report found this flood protection equates to nearly $23 billion in annual residential flood protection. Iowa’s wetlands alone could mitigate $477 million worth of flood damage to residential areas.
These estimates in the report are extrapolated from a 2022 study that found one acre of wetland was the equivalent to $745 in benefits from prevented flood damage.
The Union of Concerned Scientists is a non-profit advocating for “science and evidence-based decision making” for climate, energy, transportation, food and equality issues.
The report alleges the Supreme Court decision in Sackett v. the U.S. Environmental Protection Agency “stripped” Clean Water Act protections from wetlands that are not connected to federally recognized bodies of water.
The new interpretation of the law, combined with the “absence of state-level wetland protections” in Iowa and other Upper Midwestern states makes wetlands “particularly vulnerable” to pollution or drainage, the report found.
According to the U.S. Department of Agriculture, in 2020, the Conservation Reserve Program had restored more than 3 million wetland acres across the country since the program started in 1985. The same program has restored over 118,000 acres of wetland in Iowa and enrolled 66,000 acres as “buffer” in farmable wetlands, according to data collected by Environmental Working Group.
A hope for Farm Bill protections
The report looks at the Farm Bill as a place to implement wetland regulations to stop “large-scale commodity growers and corporate agribusiness interests” that “exploit wetlands for agricultural expansion.”
Farm bills in the past have established protections for wetlands, including the Conservation Reserve Program and the “swampbuster” provision that linked a landowner’s eligibility for USDA incentive programs to their preservation of wetlands.
An Iowa landowner recently sued the USDA over the provision and several groups including Iowa Environmental Council, Iowa Farmers Union, Dakota Rural Action and Food & Water Watch, sought to intervene in the lawsuit, which a federal judge of the U.S. District Court for the Northern District of Iowa approved Tuesday.
The lawsuit alleges swampbusters created an unconstitutional condition for a farmer to receive USDA benefits, while the now-approved intervenors say without the law, there would be little to no protections for wetlands from farmers seeking to expand their croplands.
In addition to swampbuster, the report details other Farm Bill provisions that have protected wetlands, including conservation and wetland easement programs and the Environmental Quality Incentives Program, or EQIP, which “enhance(s) wetlands” by promoting soil and water conservation.
The report calls for the next Farm Bill, which Congress has been unable to agree on and pass for more than two sessions now, to “enhance” existing conservation programs and implement new incentives that “foster soil and water health.”
These suggestions include: increasing the Conservation Reserve Program acres to 45 million acres; increasing funding for the Conservation Stewardship Program from $1 billion to $4 billion annually; expanding funding to historically underserved, disadvantaged and new farmers, and to link the Federal Crop Insurance Program to a farmer’s participation in conservation practices.
According to the report, investments from these recommendations constitute “only a fraction of the significant annual value wetlands deliver.”
“Integrating these initiatives into the next food and Farm Bill will fortify USDA programs that safeguard wetlands from industrial agriculture, ensuring these vital ecosystems thrive and continue to mitigate flooding, purify water, and support our communities and our climate,” the report said.
Iowa Capital Dispatch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: info@iowacapitaldispatch.com. Follow Iowa Capital Dispatch on Facebook and X.
A top executive with Minnesota’s largest utility says data center growth will not prevent it from meeting the state’s 100% clean electricity law, but it may extend the life of natural gas power plants into the next decade.
“As we take all of that coal off the system — even if you didn’t add data centers into the mix — I think we may have been looking to extend some gas (contracts) on our system to get us through a portion of the 2030s,” said Ryan Long, president of Xcel Energy’s division serving Minnesota and the Dakotas. “Adding data centers could increase the likelihood of that, to be perfectly honest.”
Long made the comments at a Minnesota Public Utilities Commission conference this fall exploring the potential impact of data centers on the state’s 2040 clean electricity mandate.
The expansion of power-hungry data centers, driven by artificial intelligence, has caused anxiety across the country among utility planners and regulators. The trend is moving the goalposts for states’ clean electricity targets and raising questions about whether clean energy capacity can keep up with demand as society also tries to electrify transportation and building heat.
Minnesota PUC commissioner Joe Sullivan organized last month’s conference in response to multiple new data centers projects, including a $700 million facility by Facebook’s parent company Meta that’s under construction in suburban Rosemount. Microsoft and Amazon have each acquired property near a retiring Xcel coal plant in central Minnesota.
“We need to ensure that our system is able to serve these companies if they come,” Sullivan said, “and that it can serve them with clean resources consistent with state law.”
Alongside concerns about whether clean energy can keep up with new electricity demand, there’s also an emerging view that data centers — if properly regulated — could become grid assets that help accelerate the transition to carbon-free power. Several stakeholders at the Oct. 31 event shared that view, including Xcel’s regional president.
A 100-megawatt data center could generate as much as $64 million in annual revenue for Xcel, enough to help temper rate increases or cover the cost of other projects on the system, Long said. He said the company wants to attract 1.3 gigawatts worth of data centers to its territory by 2032, and it thinks it can absorb all of that demand without harming progress toward its 2040 clean energy requirement.
Long said data center expansion will not change the company’s plans to close all of its remaining coal-fired power plants by 2040, but it may cause them to try to keep gas plans operating longer. Ultimately, meeting the needs of data centers will require more renewable generation, battery storage, and grid-enhancing technology, but rising costs and supply chain issues have slowed deployment of those solutions.
Other utilities echoed that optimism. Julie Pierce, Minnesota Power’s vice president for strategy and planning said the company has experience serving large customers such as mines in northeastern Minnesota and would be ready to serve data centers. Great River Energy’s resource planning director Zachary Ruzycki said the generation and transmission cooperative “has a lot of arrows in its quiver” to accommodate data centers.
Ruzycki noted, too, that much of the interest it has received from data center developers is because of the state’s commitment to clean energy. Many large data center operators have made corporate commitments to power them on 100% carbon-free electricity, whether from renewables or nuclear power.
Pete Wyckoff, deputy commissioner for energy at the Minnesota Department of Commerce, expressed doubts about the ability to meet unchecked demand from data centers. Even with the state’s recent permitting reforms, utilities are unlikely to be able to deliver “power of any sort — much less clean power — in the size and timeframes that data centers are likely to request.”
He sees hydrogen, long-duration batteries, carbon capture, and advanced nuclear among the solutions that will eventually be needed, but in the short-term the grid could serve more data centers with investments in transmission upgrades, virtual power plants, and other demand response programs.
“These solutions can be deployed faster and cheaper than building all new transmission and large clean energy facilities, though we’ll need those, too,” Wyckoff said.
Aaron Tinjum, director of energy policy and regulatory affairs for the Data Center Coalition, said data centers provide the computing power for things like smart meters, demand response, and other grid technologies. The national trade group represents the country’s largest technology and data center companies.
“We can’t simply view data centers as a significant consumer of energy if they’re all helping us become more efficient, and helping us save on our utility bills,” Tinjum said.
He also pointed to data centers’ role in driving clean energy development. A recent report from S&P Global Commodity Insights found that data centers account for half of all U.S. corporate clean energy procurement.
The true impact of data centers on emissions and the grid is complicated, though. Meta, which participated in the recent Minnesota conference, says it matches all of its annual electricity use with renewable energy, but environmental groups say there is evidence that its data centers are increasing fossil fuel use and emissions in the local markets where they are built.
Amelia Vohs, climate program director with the Minnesota Center for Environmental Advocacy, raised concerns at the conference about whether data center growth will make it harder to electrify transportation and heating. She pointed to neighboring Wisconsin, where utilities are proposing to build new gas plants to power data centers.
“This commission and the stakeholders here today have all done a ton of work and made great progress in decarbonizing the electric sector in our state,” Vohs said. “I worry about possibly rolling that back if we all of a sudden have a large load that needs to be served with fossil fuels, or [require] a fossil fuel backup.”
The Minnesota Attorney General’s Office argued that state regulators need to scrutinize data center deals to make sure developers are paying the total cost of their impact on the system, including additional regulatory, operational and maintenance work that might be required on the grid.
In an interview, Sullivan said he was impressed by tech companies’ interest in having data centers in Minnesota because of the 2040 net zero goal, not despite it. They want to buy electricity from Minnesota utilities rather than build their own power systems or locate in neighboring states, he added, and the October meeting left him confident that “we can deal with this.”
A solar-powered microgrid project backed with funding from the Biden administration aims to reduce energy burdens and provide backup power to a tiny northern Minnesota tribal community.
The Pine Point Resilience Hub would serve an elementary school and community center in Pine Point, an Anishinaabe village of about 330 people on the White Earth Reservation.
In June, the project was selected to receive $1.75 million from the U.S. Department of Energy’s Energy Storage for Social Equity (ES4SE) Program, which helps underserved and frontline communities leverage energy storage to make electricity more affordable and reliable. It’s part of a slew of Biden administration funding related to grid resilience and energy equity that has spurred several tribal microgrid projects across the country.
The developers, locally owned 8th Fire Solar and San Francisco-based 10Power, hope to finish the project next year, and have also secured funding from Minnesota’s Solar for Schools program and foundation grants but said they still need to raise about $1 million. They’re also counting on receiving about $1.5 million in federal tax credits, which face an uncertain future with the incoming Trump administration.
“The idea of the microgrid is to help with infrastructure,” said Gwe Gasco, a member of the White Earth Nation and the program coordinator with 8th Fire Solar, a thermal solar company based on the reservation.
Tribal communities were largely bypassed during the massive, federally funded push under the Rural Electrification Act of 1936 to bring electricity to remote rural areas of the country. As a result, grid infrastructure on many reservations remains insufficient to this day, with an estimated 1 in 7 Native American households on reservations lacking electricity connections, and many more contending with unreliable service.
On top of higher-than-average electric reliability issues, tribal communities also generally pay higher rates for electricity and face higher energy burdens due to poverty and substandard housing.
On the White Earth Reservation, these challenges are most pronounced in Pine Point, where one-third of residents live in poverty. Gasco said the area is among the first to suffer from outages, with eleven occurring over the last five years, according to the Itasca-Mantrap Electric Cooperative that serves the area.
The Pine Point School on the White Earth Reservation in Minnesota. Credit: 10Power
The Pine Point Resilience Hub project will build on an existing 21-kilowatt solar array, adding another 500 kilowatts of solar capacity along with a 2.76 megawatt-hour battery storage system, enough to provide about 12 hours worth of backup power for residents to be able to charge cell phones, power medical equipment, or stay warm in the event of a power outage.
Gasco said the microgrid could be especially important in the winter, given the area’s “brutally cold” weather and reliance on electric heat. They also hope it will reduce utility costs, though they are still negotiating with the local electric co-op on rates for power the system sends and receives from the utility’s grid. Itasca-Mantrap President and CEO Christine Fox said it doesn’t set net metering rates, which are determined by its electricity supplier.
The project developers hope to qualify for additional federal tax credits by using equipment largely produced in the U.S., including Minnesota-built Heliene solar panels, inverters made in Massachusetts, and Ohio-produced solar racks.
The developers have partnered with the Pine Point School District, which plans to incorporate the microgrid into an Ojibwe-language curriculum on renewable energy. A monitoring interface will allow students to see real-time data in the classroom.
“It’s powerful to me that this (project) is at a school where we’re hoping to inspire the next generation of kids,” said Sandra Kwak, CEO and founder of 10Power, a for-profit company that specializes in developing renewable energy projects in tribal communities.
Corey Orehek, senior business developer for Ziegler Energy Solutions, which has been hired to do the installation, said they plan to work with a local community college to train students for solar jobs.
“One of the things that we want to drive in this is workforce development,” Orehek said. “We want to leave something that’s not only a project that’ll last 30 years but provide the training and experience for community members to either start their own energy companies or become contractors in the clean energy workforce.”
The resilience hub is the second such project announced by a Minnesota tribe in just recent months. The Red Lake Nation received $3.15 million from the U.S. Department of Energy’s Local Government Energy Program in late September for a behind-the-meter microgrid project at a secondary school.
The Shakopee Mdewakanton Sioux Community is also working with Minnesota Valley Electric Cooperative to build a $9 million microgrid with U.S. Department of Energy funding. The electric cooperative will install a 4 megawatt-hour energy storage system and add a 1 megawatt solar system at the reservation in suburban Minneapolis.
It’s unclear whether federal funding for such projects will continue in President-elect Trump’s second term, but for now tribal energy advocates see microgrids as a good solution to both lower energy burdens and improve reliability.
“This is a great opportunity to create a success story in terms of leveraging cutting-edge technology, being able to help frontline communities, and for tribes and co-ops to work together,” Kwak said.
Election Day yielded few bright spots for the transition to clean energy, but there was one in Ann Arbor, Michigan. The city of nearly 120,000 voted 79 percent in favor of a measure to create a “sustainable energy utility” (SEU) that will supplement the existing grid and help residents shift to cleaner, more reliable energy.
With that overwhelming approval, city officials will now figure out the governance, staffing, and leadership of the new local utility. They have already begun outreach to residents interested in participating; 600 customers had registered by Tuesday afternoon. The plan is to assemble an initial tranche of 20 megawatts worth of demand, at which point Ann Arbor will finance the purchase and installation of solar panels, batteries, and energy-efficiency upgrades to serve those customers.
Installations — on homes, sheds, schools, libraries — could happen in the next 18 to 24 months, Mayor Christopher Taylor told Canary Media. Longer term, the utility hopes to construct a district-level geothermal network to heat and cool buildings without fossil fuels.
“I’m incredibly gratified by the support that voters of Ann Arbor have given to the SEU,” Taylor said. “The SEU is going to be both great for our carbon future and great for the pocketbook.”
The effort to fast-track local clean energy installations serves Ann Arbor’s ambitious climate goals. But it’s also a response to an uptick in power outages as extreme weather collides with for-profit utility DTE’s aging distribution-grid infrastructure. Monopoly utilities, for the most part, have shown little interest in seizing the opportunities of decentralized energy, but that’s core to the new Ann Arbor utility’s mission.
The measure’s success marks the latest episode in a sporadic national trend of communities trying to break free from the century-old model of for-profit, monopoly utilities controlling local energy systems.
Such efforts typically provoke a scorched-earth response from the incumbent utility. Utilities elsewhere have waged lengthy legal battles and spent millions of dollars on political campaigns to stop these escape attempts. When localities win their energy autonomy, they often have to pay hefty exit fees as a reimbursement for grid infrastructure built on their behalf. Communities that make it through that ringer then have to shoulder the laborious task of operating and maintaining decades-old infrastructure while trying to push ahead with new technologies.
In a bracing and punchily worded 2021 report, Ann Arbor’s sustainability office made clear that it would take a different route.
“Every dollar we don’t spend in litigation or to buy the [investor owned utility]’s old, failing infrastructure is money we can spend on new infrastructure here in Ann Arbor to generate power, distribute power, and store power — dollars we can use to immediately provide reliable, clean, and affordable public power to everyone,” the city wrote.
In short, it’s a distributed energy wish list coming to life. Ann Arbor has created a clear pathway to building more clean, local, resilient, and publicly owned infrastructure. If the city can make electricity cheaper on top of that, it will demonstrate that a better electricity system is possible even without completely overhauling the existing utility industry.
Local action for local needs
In 2019, Ann Arbor set a 2030 deadline to deliver equitable, community-wide carbon neutrality. Meeting that target requires sourcing clean electricity, driving out fossil-fuel combustion in buildings, and cleaning up transportation.
But the city’s built environment poses some challenges. Ann Arbor spans about 49,000 households, 52 percent of which are rentals. Overall housing stock averages 48 years old. That necessitates a lot of retrofits to turn these buildings into efficient systems running on clean electricity.
The SEU thus prioritizes energy-efficiency upgrades for customers. Unlike a for-profit utility, the municipally owned nonprofit has no incentive to let customers keep wasting energy. Ann Arbor aims to make efficiency more accessible with tools like on-bill financing, “structured to match or be lower than the monthly utility bill savings, resulting in a positive cash-flow for the customer immediately,” per the 2021 report.
The utility can buy equipment like solar panels and batteries in bulk and finance these upgrades with its AAA municipal credit rating, accessing far cheaper capital than a bunch of lone homeowners negotiating separately with private lenders. And the on-bill charge stays with the house — if someone moves out, the new resident takes over paying for the improvements that will lower their bill.
Climate goals weren’t the only factor motivating the change. The area’s aging grid has suffered a number of outages lately.
“Ann Arbor is currently served by an investor-owned utility that has a history of reliability challenges in our area,” Taylor noted. “We expect the SEU to provide far more reliable service.”
The SEU plans to install and own solar panels on customers’ rooftops and batteries in their sheds and garages, selling those customers the power at cost, without a markup. That lets residents access solar power and backup power without dropping a load of cash up front for it or taking on debt. This kind of subscription is available from companies like Sunrun, but they do it to make money, not to sell at cost.
The most radical dimension of the plan is to use the city’s utility franchise rights to build wires between properties, so that they can share excess solar power locally. Most everywhere in the country, customer-led upgrades have to stay on the customer side of the utility meter; crossing that boundary to sell power to a neighbor violates the utility’s legally enforced monopoly. This stands in the way of visions for interconnected neighborhoods generating and selling power with each other based on who needs it at a given moment.
But Ann Arbor officials tracked down a century-old precedent that makes sharing power possible: “The Michigan Constitution preserves the rights of cities and villages to form their own utility or to supplement an existing utility,” Missy Stults, the city’s sustainability and innovation director, told me.
Thus, the SEU will link up different properties if the people living there want it. If a home generates more solar than it can use, it could run a line to a neighboring house that’s shaded by trees, allowing it to buy surplus power.
“We’ll be able to connect homes with each other, schools with homes, schools with each other,” Taylor said. “We’re going to do this in a way that is cost-effective and fully opt-in.”
This plan assumes people will be happy to offer up their roof space for panels that the SEU will own and use for broader community benefit. But doing so will let that household buy cheaper, cleaner power for itself. The battery controls present some additional complications: Will the host customer get first dibs on backup power, or will that be split among the locally connected homes as well? This is new territory for distributed energy in the U.S.
That said, the strong show of support at the ballot box demonstrates the local community is fully on board with the general direction of the SEU. It’s no accident that this idea is coming to fruition in a college town like Ann Arbor, said Liesl Clark, a former state climate leader who now serves as director of climate action engagement at the University of Michigan.
“There are a lot of people who are innovative and also are interested in having agency,” she said. “It is a community that was ripe for a solution like this.”
Furthermore, the city structured the plan in a way to minimize any downside for residents who don’t want to jump on the decentralized power opportunity.
“You haven’t asked me how much it’s going to cost the taxpayer,” Taylor told me as I was about to wrap up our phone call. He answered the rhetorical question: “Nothing!”
That pledge veers into too-good-to-be-true territory, but the SEU structure makes it possible. The city won’t levy any new taxes because it’s not buying out DTE’s assets. Instead, it’s installing new equipment based on voluntary customer commitments, and those customers pay their way, while saving themselves money.
Breaking free from utilities without all the hassle
The outcome of this effort remains far from certain. But so far, Ann Arbor has managed to pursue a low-drama, low-conflict way to break up with a monopoly utility, in contrast to high-profile recent attempts elsewhere.
The city of Boulder, Colorado, famously fought for a decade to peel off from Xcel Energy, and ultimately gave up. In 2010, California mega-utility PG&E spent $46 million to make it harder for communities to source their own electricity, though even that gargantuan sum failed to stop the rise of community choice aggregators.
Maine has grappled for years with its deeply unpopular monopoly utilities. Last year, voters nonetheless soundly rejected a ballot referendum to seize utility assets under a new public power entity. The utilities spent $40 million to fight it, and independent experts raised concerns about how the public entity would deliver on promises of a cheaper, more efficient grid after saddling itself with billions of dollars of debt.
Activists in Ann Arbor have also pushed for full municipalization — a city-level version of what Maine considered and rejected. The city is working on a second study to dig into the details of what purchasing the grid infrastructure would entail. That conversation will continue as the SEU implementation moves forward, Taylor noted.
For its part, Michigan utility DTE hasn’t declared war on Ann Arbor. Following the vote, the company stated that it will continue to invest in making the city’s grid more resilient and clean — a recent Michigan climate law requires ramping to 60 percent renewable power by 2035 and 100 percent clean electricity by 2040.
The public interest in full municipalization may explain the muted response from the utility: The SEU allows DTE to go on with business as usual, and its distribution grid will continue to play a crucial role even if kilowatt-hour sales decline from the new local solar generation.
Instead of fighting the utility colossus head on, Ann Arbor is taking a live-and-let-live approach. It’s a case where avoiding head-on conflict could make it possible to deliver the benefits of clean, local energy far more quickly.
Dearborn, Michigan, was at the heart of auto industry innovation during the days of the Model T Ford.
Now clean energy and environmental justice advocates are proposing that the city play a lead role in greening the auto industry, through a transformation of the Dearborn Works steel mill to “green steel” — a steelmaking process powered by hydrogen and renewable energy with drastically lower emissions than a traditional blast furnace.
The blast furnace at Dearborn Works is due for relining in 2027, at an estimated cost of $470 million. Advocates argue that instead of prolonging the blast furnace’s life, its owner, Cleveland Cliffs, should invest another $2 billion dollars and convert the mill to Direct Reduced Iron (DRI) technology powered by green hydrogen (hydrogen produced with renewable energy).
An October report by Dr. Elizabeth Boatman of the firm 5 Lakes Energy examines the economics and logistics of such a conversion, and argues that demand for cleaner steel is likely to grow as auto companies and other global industries seek to lower their greenhouse gas footprints. Starting in 2026, steel importers to the European Union will need to make payments to offset emissions associated with steel production.
Worldwide, the auto industry is the second largest consumer of steel after construction, and “being able to pass on the price of a ‘green steel premium’ to its end consumers, the automotive industry is uniquely positioned to create demand for green steel without having to rely on public subsidies,” the European Union think tank CEPS said in a recent publication.
“This is a great chance for the state to step in now and ensure this conversion happens, instead of waiting another 20 years,” said Boatman. “All the economic indicators suggest clean steel is the steel product of the future, and the best way to future-proof jobs especially in the steel sector and especially for unions.”
Cutting pollution, creating jobs
Cleveland Cliffs is planning to convert its Middletown, Ohio, steel mill to DRI, tapping a $500 million federal grant for industrial decarbonization under the Bipartisan Infrastructure Law and Inflation Reduction Act.
A DRI furnace does not need to use coke or heat iron ore to 3,000 degrees Fahrenheit to produce pure “pig iron”; the same result is achieved with a different chemical process at much lower temperatures. DRI furnaces can be powered by natural gas or clean hydrogen. Initially, Cleveland Cliffs says, its Middletown mill will run on natural gas, releasing about half the carbon emissions of its current blast furnace. Eventually, the company announced, it could switch to hydrogen.
Along with slashing greenhouse gas emissions, a similar green steel conversion at Dearborn Works would greatly reduce the local air pollution burden facing local residents in the heavily industrial area, which is also home to a Marathon oil refinery, a major rail yard and other polluters.
But it wouldn’t be cheap. Boatman’s report estimated the cost of converting a blast furnace to a DRI furnace and associated electric arc furnaces at $1.57 billion, plus $2.6 billion to build a green hydrogen plant. Utility DTE Energy would need to work with grid operator MISO to add about 2 GW of solar and 2 GW of wind power, plus battery storage, to the grid to power the green hydrogen production.
The conversion would mean closure of the EES Coke plant, which turns coal into coke for the steel mill, on heavily polluted Zug Island in the River Rouge just outside Detroit, five miles from Dearborn. In 2022, the EPA sued the coke plant, a subsidiary of DTE Energy, over Clean Air Act violations.
A recent study by the nonprofit Industrious Labs found that the EES Coke plant could be responsible for up to 57 premature deaths and more than 15,000 asthma attacks. The report also found that more than half the people living within a three-mile radius of both the steel mill and coke plant are low-income, and three-quarters of those living around the coke plant are people of color, as are half those living around the steel mill.
“The total health costs are quite significant,” said Nick Leonard, executive director of the Great Lakes Environmental Law Center, which is representing local residents as intervenors in the EPA lawsuit against the coke plant. “We allow companies to externalize those costs and not account for them. If they were required by some sort of change in policy or regulation to be responsible for those costs, it would certainly make the case they could make this expensive switch” to green steel.
The law center also represented residents in legal proceedings around Dearborn Works’ Clean Air Act violations, including a 2015 consent decree and a 2023 mandate to install a new electrostatic precipitator at a cost of $100 million.
Leonard said local residents “know Cleveland Cliffs poses a risk to their health, and they want solutions. They know there’s a problem, they are frustrated by the lack of will or attention from state and local government.”
Cleveland Cliffs did not respond to a request for comment.
Why Michigan?
The country’s active steel mills are concentrated in Pennsylvania, Indiana, Ohio and Michigan. Advocates and residents are asking Nippon Steel to consider a green steel conversion at the Gary Works mill in Northwest Indiana, if the global corporation succeeds in acquiring Gary Works owner U.S. Steel. Advocates have also proposed green steel conversions for Pennsylvania mills.
There are factors that make a green steel conversion both more promising and more challenging at Dearborn Works, compared to other locations, Boatman explained.
Dearborn Works has only one blast furnace in operation, meaning a potentially smaller investment than at mills with more furnaces. Michigan has also set aggressive renewable energy goals, which could be furthered by the ambitious renewable energy buildout that would be required to produce enough green hydrogen for the steel mill.
“That’s why we’re asking the state of Michigan and the governor to get all the interested parties to the table to actually talk about this, hopefully commit to it, and do the detailed planning that needs to be done to figure out how much wind, how much solar, how much battery storage does there need to be to get this off the ground,” said Boatman.
Michigan has legal limits on behind-the-meter generation that could make it more difficult to build renewables specifically to power green hydrogen production for a steel mill. Utilities would instead need to produce or procure the renewable energy, and sell it to the steel mill, Boatman explained.
A green steel conversion at Dearborn Works could create a total of about 500 new jobs, Boatman estimates, considering that about 500 jobs would be lost at the closing coke plant but 410 jobs would be created at the hydrogen plant, 550 in new renewables and 170 at the mill itself. The DRI conversion at the Middletown steel mill is expected to create 170 new permanent jobs and 1,200 construction jobs, according to Cleveland Cliffs.
A 2023 analysis by the Ohio River Valley Institute found that at the Mon Valley Works steel mill in Pennsylvania, a DRI conversion would likely preserve more iron- and steel-making jobs than “business as usual,” with 87% of the current jobs expected to exist in 2031, compared to 69% without a change — as U.S. steel production continues to shrink and automate.
“We are seeing a general trend for both iron and [secondary] steel production to move toward the South, to states that aren’t friendly to unions and can produce products at cheaper prices by bypassing unions,” said Boatman. “Michigan obviously has a proud history of being a strong union state, it matters to keep those good union jobs there.”
Labor unions have largely been silent on the concept of green steel conversion. The United Auto Workers union — which represents Dearborn Works employees — and the United Steelworkers did not respond to requests for comment.
Hydrogen wild cards
The U.S. Department of Energy plans to spend $8 billion on hydrogen hubs, and a potentially lucrative tax credit known as 45V is being finalized for clean hydrogen. Experts and advocates agree that energy-intensive, hard-to-decarbonize industries like steel are where hydrogen could have the most impact. But large-scale production of pure hydrogen for industrial use is still in nascent stages, and little infrastructure has been built or tested for transporting and storing hydrogen.
That is among the reasons, Boatman said, that there’s been reluctance among residents and union leaders to embrace the concept of green steel. Boatman’s report emphasizes that community benefits agreements and community engagement processes are crucial to make sure residents are informed about, benefit from, and have a meaningful voice in any green steel plans.
“Union workers and fence-line community members all want better air quality, lower emissions, who wouldn’t want to go to work knowing you’re safer being there?” she said. “There’s a lot of interest in cleaning up the air. It’s more a question over how that happens. When hydrogen becomes part of the equation, there’s always some concern.”
She noted that hydrogen could potentially be stored in salt caverns in the Detroit area, though extensive study on the feasibility and environmental impacts would be needed. In Mississippi, a startup company Hy Stor Energy is planning to store green hydrogen in salt caverns, ready to generate electricity during times of high demand.
Tax incentives for clean hydrogen could provide major incentives for steel mills. But clean hydrogen proposed projects have been in flux nationwide as the rules for qualifying for 45V tax credits are being hashed out in a lengthy, controversial process; and the change in presidential administration adds even more uncertainty.
“These industries have to be incentivized,” said Roxana Bekemohammadi, founder and executive director of the U.S. Hydrogen Alliance, which advocates for pro-hydrogen policies on the state level. “Europe is creating a mandate — that’s one incentive. We’d love to support any incentives that would allow hydrogen to be leveraged in the steel industry. With state legislation we certainly can incentivize it. It’s a question of how competitive we want to be.”
In May, a CBS News reporter asked the Illinois Department of Agriculture if there were bird-flu-positive dairy herds in Kane County, only to be told the department “doesn’t have any role in this testing” and was directed to the state’s health department.
But an internal email from Connie Austin, the public health department’s veterinarian and deputy state epidemiologist, revealed disagreement.
“I just want to reinforce that IL Dept of Ag should be the source of information about positive dairy herds as they would be coordinating the testing/getting results from USDA etc.,” she wrote to high-ranking agency members in the public health department.
The reporter’s email request came nearly two months after the first reported case of bird flu in dairy cattle.
Because bird flu poses a risk to both animals and humans, state departments of agriculture and health have overlapping roles. However, records and emails obtained by Investigate Midwest show the two agencies in multiple states often disagreed on who was responsible for testing and whether confirmed cases should be publicized. Emails also showed that officials within state agriculture agencies disagreed on how to investigate suspected cases.
Avian influenza, also called bird flu or H5N1, first appeared two years ago among commercial and backyard poultry. In March, the virus was found in U.S. dairy cattle. Since then, more than 330 dairy herds and 36 people have been infected with the virus, according to the Centers for Disease Control.
While the risk to the general public remains low, according to the CDC, the total number of human cases of H5N1 nationwide has grown significantly in the last month, having more than doubled this month.
Bird flu cases in cattle have been found in at least 14 states, and local agencies often dictate testing requirements, the dispersal of protective equipment and how warnings and guidance are issued to dairy farm operators.
Asked about the May emails that showed disagreement between the two agencies, the Illinois health and agriculture departments issued a joint statement, saying the statutory responsibilities of the agriculture department are “to surveille, respond, identify, contain, and eradicate the disease from the affected herd or flock. Outbreak response pertaining to human health, exposure, etc. is conducted by IDPH.”
However, similar disagreements and confusion were found in other states. Investigate Midwest’s review of emails showed:
State officials in Michigan decided not to notify the public of a suspected case earlier this year and grew frustrated when local officials intended to alert their community.
In Illinois, few farms have requested personal protective equipment, and a state advisory board on livestock diseases has not met in years.
Wisconsin officials did not have a plan for issuing guidance in Spanish, the dominant language for most dairy farm workers in that state.
Some state health officials were at odds with how federal agencies were dispersing information and the lack of unique guidance between dairy farms and poultry farms.
Dr. Rosemary Sifford, chief veterinary officer for the U.S. Department of Agriculture, told Investigate Midwest that compared to years of experience with the virus in poultry, the explosion of bird flu in dairy cattle caught states off guard. Sifford works with federal and state agencies to track and prevent the spread of the virus across the country.
“We just haven’t had that kind of experience on the dairy side,” she said.
Michigan officials disagreed on publicizing second dairy herd outbreak
On April 8, a veterinarian with the Michigan Department of Agriculture & Rural Development alerted her bosses to an outbreak in Montcalm County, in the central part of the state. The agriculture department had issued a press release about the first outbreak 10 days earlier, on March 29.
But the state vet, Nora Wineland, said that was not the plan this time. “We do not have plans for a specific press release about this finding,” she wrote in emails obtained by Investigate Midwest through a public records request.
The next day, Joseph Coyle, one of Michigan’s top epidemiologists at the Michigan Department of Health & Human Services, pushed back.
“Our feeling is that a proactive vs. reactive media statement is warranted,” he wrote. “Of course, the farms could not be named and (the state health department) and the (local health department) would work with (the agriculture department) on the content of the media statement.”
Over the next two days, state officials had a series of calls, which are not described in the emails. Ultimately, state agriculture officials would lead on messaging.
On the afternoon of April 11, the state agriculture department released its statement. It did not mention that a second dairy herd had an outbreak. Instead, Tim Boring, Michigan’s agriculture director, said farms “must act now to heighten and tighten biosecurity measures to contain the spread” of the virus. State health officials did not release a press statement.
However, hours later, a health department spokeswoman, Lynn Sutfin, emailed her agriculture counterpart, Jennifer Holton. The local health department responsible for Montcalm County — the Mid-Michigan District Health Department, which also serves two other counties — had prepared a public guidance related to bird flu and was going to announce local herds had tested positive.
“Don’t shoot the messenger,” Sutfin told Holton. “Deep breath.”
Holton appeared blindsided. “My understanding that was no longer the case,” she replied. “So, I am surprised there is a planned news release for tomorrow.”
An email exchange between Michigan health and agriculture officials over plans to publicize a positive case.
On April 12, the local health officials published their guidance on their website. The locals’ guidance had similar information as the agriculture department’s release the previous day, and it urged those working with dairy herds to take precautions. It also said that “two herds in Michigan” had tested positive.
In a joint statement to Investigate Midwest, Sutfin and Holton said there was a miscommunication that was quickly addressed. The discussion was about “ensuring … clear, consistent and correct information was getting out on a rapidly evolving animal health emergency,” the statement reads.
“During the rapid response to the growing outbreak, commitment to providing clear and consistent information to Michigan’s farming community and residents was always the priority,” the statement continues. “There was a bit of a misunderstanding on the local health department level, (the state health department), and (the state agriculture department) that was quickly and effectively cleared up.”
Liz Braddock, the health officer leading the Mid-Michigan District Health Department, is not included in the email thread. She said having the agriculture department involved changed the usual lines of communication.
“It didn’t come out right away that there was an animal industry (involved), so maybe that’s the miscommunication,” she said in an interview. “(Avian influenza) was new to our area and we wanted to make sure that those in the community knew what avian flu was and they were not getting any misinformation or misguidance because we had seen that happen with past pandemics.
“It was an odd way at the beginning,” she continued. “We were unfamiliar with animal industry law, and (the agriculture department is) a part of animal health, and we are human health. … It became better.”
Around this time, Braddock said, her health department started having weekly calls with officials from the state agriculture department. All local health departments in the state were eventually invited to the weekly calls, she said.
The next month, as the number of dairy herds testing positive for bird flu rapidly increased — 27 herds had tested positive by mid-May — Michigan agriculture officials argued over whether and how to respond to a possible case of the virus, records show.
On Friday, May 17, agriculture officials were tipped off that a state employee suspected a cow in southern Michigan might have died from the virus. According to the state’s data, four dairies had tested positive for the virus on just that day.
Wineland, the state veterinarian, asked if a dairy inspector could contact the farm.
“I thought we had a plan to have dairy inspectors call to check in and that there would be a generic script they could follow,” Wineland responded. “That’s what I was thinking at this point. Is that plan still in the works?? Sorry if I missed the update on that plan.”
Tim Slawinski, the state agriculture department’s bureau director of Food Safety and Animal Health, which oversees dairy inspectors, disabused her.
“Our plan has evolved and does not have them asking about whether there are sick cows,” he responded.
The farm could submit samples to the Michigan State University veterinary diagnostic lab, which is not associated with the state, if they suspect bird flu, Slawinski recommended.
Boring, the state agriculture director, agreed, writing in an email that the agency doesn’t need vets chasing down every call. He suggested an agency official walk the producer through how to send samples to the lab.
“I do take these reports seriously with our growing sense that this disease is underreported,” he wrote. “I find it very plausible there are dead cows from (bird flu) on non-identified farms today.”
Asked by Investigate Midwest about the email chain, Michigan’s state agriculture department said the tip was handled correctly.
“While a dead animal is not an unusual occurrence for (state agricultural) staff to hear about, we always want to make sure to handle appropriately and expeditiously and during the HPAI outbreak in dairy cattle there were reasons to quickly determine not only the validity, but if this was actually related to HPAI and be able to take immediate action on this reportable disease,” the state agencies said. “This tip was followed up on and determined to not be HPAI-related within a short timeframe. It also underscores the importance of working with a local veterinarian.”
Survey reveals gaps in Illinois bird flu readiness; Illinois Cattle Disease Committee has not met
In April, the CDC asked that all states update their bird flu plans. In September, the Illinois Department of Public Health internally shared the results of a survey of the state’s local health departments to determine their capabilities and needs if bird flu was found within their counties.
The survey found the majority of local health departments that responded to the questionnaires could set up adequate ways to test for bird flu and get treatment to anyone who tested positive within two days. However, less than a quarter of hospitals and clinics said they had space available where symptomatic workers or families could isolate while infected.
In a statement sent to Investigate Midwest, a spokesperson for the IDPH said: “In the event of a public health emergency that overwhelms an LHD’s (local health department’s) capabilities, state or federal assistance could be requested by the LHD.”
According to the University of Illinois, there are 423 dairy farms in Illinois. Sixteen farms were selling raw milk as of mid-April.
“That is a practice that is always discouraged, but even more so now,” said public health veterinarian Connie Austin, according to notes sent out by the College of Veterinary Medicine at the University of Illinois Urbana Champaign. “Farmer workers (sic) need to step up their PPE including gloves, goggles, boots, head covers, N95 masks and aprons.”
But as of Sept. 5, only one Illinois dairy farm near Rockford has requested personal protective equipment for five employees, which included protective face shields, N95 respirators, polyethylene aprons and disposable gloves.
It took the agency 10 days to fulfill the request.
The spread of avian influenza would also seem to be a relevant time for the state’s little-known Cattle Disease Committee to gather, as its role is to meet in the “event of a disease outbreak or other significant disease situation.” The state’s director of agriculture, Jerry F. Costello II, is the only person who can convene the 18-person board.
However, the Cattle Disease Committee has not met this year.
The state’s Advisory Board of Livestock Commissioners also has not met since 2021. According to public records, 53% of the positions on the advisory board (15 out of 28 positions) are vacant. That accounts for every governor-appointed position except for Dave Thompson, a representative of poultry breeders, and Jane Zeien, a representative of sheep breeders.
The Illinois Department of Agriculture is in the process of appointing new members to the Advisory Board of Livestock Commissions, according to an IDOA spokesperson. The state’s Cattle Disease Committee has not met because “meetings shall only occur in the event of a disease outbreak or other significant disease situation,” according to the spokesperson.
Majority Spanish-speaking dairy workforce left out of Wisconsin’s initial response plans
The Midwest’s largest dairy-producing state has not had a confirmed case of bird flu in dairy herds, but as the state’s agencies prepared for potential outbreaks, inter-department breakdown often got in the way.
Emails show leadership within the health department division responsible for dealing with communicable diseases were unclear on answers to questions regarding the size of the state’s dairy industry, where the state’s farms were located, if they should be contact tracing for the virus, and the availability of PPE.
Department of Health Services employees also asked leadership about the need for Spanish-language communication plans, which weren’t an initial part of the state’s response. A DHS employee wrote that they would be “supportive of creating a Spanish-speaking comms plan,” but weren’t sure how to incorporate it into already established communication plans.
Wisconsin DHS did not answer specific questions about whether the agency had Spanish-language communication plans early in the onset of the bird flu crisis.
The majority of dairy workers in Wisconsin are Hispanic and speak Spanish, according to UW-Madison research.
When members of the state’s dairy industry reached out to DHS about guidance in May, the health department was still waiting on guidance from the state department of agriculture.
In a statement provided to Investigate Midwest, Wisconsin DHS said it has been meeting with its agricultural counterpart from the outset of the bird flu crisis. A spokesperson with the department said it has had to react to new information from federal partners and other states, as well as communication plans that cast a wide net.
“Part of our routine work in a public health response is working with partners uniquely suited to help reach communities and get information to people who need it from sources they already trust, and it appears these records reflect that important work,” the agency said, referring to the emails reviewed by Investigate Midwest.
Colorado cases spike as lead epidemiologist questions PPE protocol
Over the summer, Colorado saw a spike in bird flu cases in dairy cattle. From early June to August, the state had 60 new cases, nearly one each day.
However, the state was still dealing with its bird flu outbreaks among poultry and how the two industries differ.
In a July email, Dr. Rachel Herlihy, the state’s leading epidemiologist, said she disagreed with how the federal government was communicating different PPE guidelines.
“I feel that OSHA and other federal agencies need to clarify that there are risk differences and exposure differences on dairy farms and poultry farms,” she wrote. “PPE guidance should be distinct for the two settings. Face shields are definitely not adequate during poultry culling.”
Three poultry workers in Colorado were confirmed with positive cases in early July. According to a report obtained through an open records request, the state’s ag department witnessed and was involved in a mass culling of poultry at a commercial poultry operation in Platteville, Colorado, in mid-July.
Colorado agriculture department employees praised the efficient communication among state, local and federal officials who were present at the culling event, according to the records.
“Numerous USDA people communicated to me that they aren’t used to having a state department of ag be such a collaborative partner like the (Colorado Department of Agriculture) has been for this incident,” one employee wrote. “The (poultry operation) employees also conveyed their appreciation for the assistance they have received during this HPAI crisis.”
This story was originally published on Investigate Midwest. Investigate Midwest is an independent, nonprofit newsroom whose mission is to serve the public interest by exposing dangerous and costly practices of influential agricultural corporations and institutions through in-depth and data-driven investigative journalism.Visit online at www.investigatemidwest.org.
A successful regional collaboration to secure federal Inflation Reduction Act money in northeast Ohio has inspired a new, ongoing effort to help cities, counties, utilities and community groups coordinate on clean energy.
Three Cleveland-area foundations last month announced the launch of Power Up Local, which aims to play both a matchmaker and wedding planner role on large-scale, regional clean energy developments. The initiative plans to help connect potential partners, maximize projects’ community benefits, and facilitate joint funding opportunities such as federal grants, tax incentives, or green bank loans.
“This is really looking for the larger, more ambitious stakeholder projects that have direct stakeholder benefits,” said Daniel Gray, Power Up Local’s executive director. A big emphasis will be on assembling groups who “might not have worked with each other originally or understood where there’s an overlap” between clean energy and other goals.
The initiative could offer a new path for local leaders to advance in a place where state government remains hostile to clean energy. The continued availability of federal funding is in question following former President Donald Trump’s reelection, but Gray and others said they are confident some form of federal support for clean energy will remain during his second term.
The idea for Power Up Local grew out of collaboration among Cuyahoga County, the cities of Cleveland and Painesville, and other organizations on a $129 million grant application under the federal Climate Pollution Reduction Grant program. The application was among those awarded funding in July. It includes money for closing a coal plant and building multiple solar arrays, including on four closed landfills.
Beyond reducing pollution, the project will help lower electricity costs and generate revenue. Some of that will in turn aid in conservation efforts for the West Creek Conservancy, including lakeside access for residents in Lake County. Gray did some work on the project as director of local strategies for the Citizens Utility Board of Ohio, and local philanthropic support also helped in assembling the grant application.
The Cleveland Foundation, George Gund Foundation and the Fund for Our Economic Future are providing initial funding for Power Up Local. Initially, the program’s three full-time employees are being housed under Fund for Our Economic Future, with a goal of spinning it out as an independent nonprofit by 2027.
Gray said Power Up Local will help stakeholders think bigger and more broadly about projects. For example, a project to redevelop a former industrial site may be able to help bring in other properties from a land bank or other group, potentially expanding into an economic redevelopment district that might support a microgrid, he suggested.
“We can add efficiency to projects, both financially and timewise,” Gray said.
Power Up Local will be a resource for organizations that want to add clean energy to a project but may not have the time or bandwidth to figure out how to do it. “They don’t necessarily know how to engage the marketplace,” Gray said.
And when it comes to funding, competitive grants will just be part of the story. A range of other credits or incentives can also help bring more clean energy. That raised a question, said Stephen Love, program director for environmental initiatives at the Cleveland Foundation: “What would it look like at scale beyond just the competitive grants to really unlock the whole scale of federal resources?”
While Power Up Local will work on clean energy projects, those projects must still be “net-neutral or revenue-positive” in order to promote economic development, Gray said. “We’re looking to develop as much community benefit as possible.”
Those benefits can come from lower electricity rates for people with high energy burdens, health benefits from lower pollution, job opportunities, conservation, access to parks, redevelopment of properties to attract businesses, and so on.
“This is about economic development. This is about creating economic opportunity in our communities,” said Love. As he sees it, clean energy can help drive that development.
Uncertainties ahead
No one knows what Trump’s presidential victory will mean for federal clean energy funding, but advocates are confident some funding will still be available.
“There are still grants to go after, and will likely still be grants to go after in the future,” Gray said. A repeal of the Inflation Reduction Act and Bipartisan Infrastructure Law would take time, and much of the grant funding has flowed to districts that supported Trump in 2020.
Even if agencies under Trump stopped carrying out the law, “I don’t think the bulk of the IRA direct credits are going to go away,” Gray said. He noted that Rep. Dave Joyce (R-Bainbridge Township) is among 18 members of Congress who wrote to House Speaker Mike Johnson this summer to support continuation of the energy tax credits.
Atlas Public Policy’s Climate Portal Program estimates those tax credits could exceed a quarter of a trillion dollars, with nearly another $250 billion of potential credits under the 2021 Bipartisan Infrastructure Law. Those credits can serve as refunds for nonprofits and local governments, which is how sewage treatment authorities in Columbus and Cincinnati plan to offset big chunks of the costs for biogas plants at two of their wastewater treatment facilities.
Financing opportunities will also be available from green banks, Gray said. Commercial banks also are looking to expand their portfolios for financing clean energy projects as part of corporate sustainability goals, he noted.
Power A Clean Future Ohio has already been working for several years to help its 50 local government members find ways to cut greenhouse gas emissions, based on their individual interests and priorities. Executive Director Joe Flarida said Power Up Local’s work will be a welcome complement to its ongoing work.
“It just underscores the huge needs we have in the state of Ohio to invest locally and ensure that our local leaders and local governments have all the resources they need to do this work efficiently,” he said.
In Flarida’s view, an anti-climate approach by the incoming Trump administration “is also an anti-jobs approach.” And even if the federal government no longer treats climate change as a key priority, “that doesn’t change the reality that this is an issue we have to address head on,” he said.
Gray encourages local governments and other organizations with ideas for projects to reach out in the coming weeks and months.
“Now is the time to start thinking about what might be possible,” he said.
The U.S. Environmental Protection Agency plans to finalize more than $200 million in grant funding in the coming weeks to accelerate the clean energy transition at three Great Lakes shipping ports.
The Cleveland-Cuyahoga County Port Authority, Detroit/Wayne County Port Authority, and the Illinois International Port District were each selected for grants last month under the Biden administration’s Clean Ports Program.
The U.S. EPA said it intends to finalize grant agreements by December or January. That action will obligate the federal government to pay roughly $3 billion in grants under the program, even if President-elect Donald Trump or the next Congress tries to repeal or block further action under the Inflation Reduction Act.
The $94 million grant announced for the Cleveland port is the largest it has ever received and will help it build on work that’s already underway to electrify and decarbonize its infrastructure.
“It puts us at the forefront of decarbonization,” said William Friedman, president and chief executive officer of Cleveland’s port authority. “Now we’ll be able to start figuring out what’s the phase-in and then how do we move forward with the next round.”
The Detroit/Wayne County Port Authority will get approximately $25 million for solar panels, charging infrastructure and electric cargo handling equipment, and another $95 million will go to the Illinois EPA for solar, battery storage and hydrogen-related investments at the Illinois International Port District serving greater Chicago.
The largest share of grants will go to ports along the East and West coasts. “But the program is also intended to set the foundation for transitioning the entire port industry to zero emissions,” said Jennifer Macedonia, a deputy assistant administrator for U.S. EPA. “And there are important communities around many of our inland ports as well.”
The shipping industry accounts for roughly 3% of global greenhouse gas emissions, according to the U.S. Department of Energy. While the bulk of that is from ships themselves, port operations typically rely on diesel power for most of their energy. And ships often burn fuel to power equipment even while they’re in port.
The EPA’s review process included ensuring that selected projects can achieve or exceed goals for reducing greenhouse gas emissions, as well as other pollution that can affect nearby communities, said U.S. EPA Administrator Michael Regan. Those criteria air pollutants are ozone, particulate matter, carbon monoxide, lead, sulfur dioxide and nitrogen dioxide.
The work is especially important for Ohio, which has lagged other Midwest states and regions in deploying strategies to reduce greenhouse gases, said Valerie Katz, deputy director for Cuyahoga Green Energy. “Our regional decarbonization efforts will reduce environmental exposure to toxic air pollutants for downstream Ohio communities.”
Funding for the Port of Cleveland will encompass work for electric cargo-handling equipment and vessels that serve the port, along with solar generation and battery storage, charging infrastructure and shore power for vessels. Project partners include Logistec USA, the commercial operator for day-to-day operations, as well as the Great Lakes Towing Company, which will build two electric tug boats.
Decarbonization is a “competitive advantage that will attract more shipping volume to our port,” said Baiju Shah, president and CEO of the Greater Cleveland Partnership. “Companies are striving to reduce their environmental footprints through their operations and value chains,” including Scope 3 greenhouse gas emissions. “In addition, electrifying the port operations supports our region’s clean air efforts.”
That’s especially important given the port’s location near the downtown lakefront and riverfront areas, Shah said. Lake Erie and the Cuyahoga River are the focus for several waterfront development projects aimed at drawing more business and visitors to Cleveland.
Funding for the Port of Detroit will go toward electric cargo-handling equipment, some vessels and railcar movers, along with charging infrastructure and solar generation. Part of the money also will be used to develop a roadmap for adding EV and hydrogen fueling infrastructure. The Detroit/Wayne County Port Authority is part of the Midwest Alliance for Clean Hydrogen, or MachH2, which was selected last year for $1 billion in Department of Energy funding for a hydrogen hub.
Funding for the Illinois International Port District will cover a variety of projects for its three ports, including hydrogen fueling infrastructure, solar energy and battery storage, and hydrogen and electric cargo handling equipment. Hydrogen and electric locomotives also are on EPA’s program selections list. The Illinois EPA is the lead partner for the grant work.
Like its counterpart in Cleveland, the Detroit/Wayne County Port Authority had already begun working on plans to move to cleaner energy sources for Scope 1 and Scope 2 emissions. But zero-emissions equipment to move cargo is new in the U.S. shipping industry and is still generally more expensive than fossil-fueled counterparts.
“What’s great about the EPA grant is that it helps these businesses make the decision to choose this cleaner technology,” said Mark Schrupp, executive director for the Detroit port authority. Over time, costs for such equipment should come down, but the grants will help launch market growth.
Various projects among the 55 selected for grants last month have planning components and provisions for community engagement or workforce development. Planning work on emissions inventories can position other ports to move ahead with clean energy in the future, Macedonia said.
The U.S. EPA plans to move ahead swiftly to finalize grant agreements, which will have the effect of protecting the funds from a possible clawback under Trump or the next Congress.
“We will be awarding the grants in December of 2024 and January of 2025… so that money will be obligated on or before the end of this administration,” Regan said. Depending on the projects, implementation will occur over the next three to four years.
In Cleveland, that means a big chunk of work under the new grant will be taking place even as renovation of the Port of Cleveland’s Warehouse A and electrical work take place under its current projects.
“We’ll have to throw a lot here at the engineers and construction project management people to figure this out,” Friedman said. Yet the timing means it will be that much sooner for the port to move to zero emissions for its own operations.
A year-old state law is helping to bring new voices before the Minnesota Public Utilities Commission, and advocates and officials hope its impact will grow as more organizations learn about its existence.
Since 2007, small nonprofits have been able to seek financial compensation to help pay for expert testimony they provide in utility rate cases. State lawmakers last year expanded the concept to cover a broader range of cases, including utility pilot programs, infrastructure projects, and performance measures.
“It’s really about getting voices to the table to present us with new arguments and new issues for us to consider,” said Commissioner Joe Sullivan.
Since the law took effect in May 2023, the commission has authorized $124,318 in payments to four organizations, including two groups — Community Power and Minnesota Interfaith Power & Light — that had never before requested or received compensation for expert testimony. The other recipients were the Citizens Utility Board of Minnesota and Energy CENTS Coalition, which advocates for low-income ratepayers.
Under the previous rules, some years, including 2019, 2021, and 2022, saw no payouts at all. In 2023, regulators approved $96,000 for testimony under the old program before state lawmakers expanded its scope.
“We’re glad to see broadening participation due to the change in this intervenor compensation law,” said state Sen. Nick Frentz, a Democrat from North Mankato who supported the legislation. “Our hope is that the more voices that contribute, the better the quality of the eventual PUC decisions.”
Where the money goes
Anyone can comment on utility commission matters, but having a significant impact requires investing in staff time and experts — precious commodities unavailable to many smaller nonprofits.
The compensation process involves nonprofits submitting documentation and a sum for testimony related to a specific case. Rules require the nonprofits to have a payroll of no more than $600,000 for participation in commission proceedings and 30 full-time or fewer employees for the previous three years. The commission judges the merits of reimbursement based on six criteria that focus on whether the organization’s testimony materially impacted its decision.
Once nonprofits receive approval for compensation from the commission, the utility involved in that case pays them. The Legislature set a maximum limit on how much any utility will pay annually to intervenors, ranging from $1.25 million for Xcel Energy to $100,000 for Otter Tail Power and other smaller utilities.
Although the new law broadened the types of cases in which nonprofits could seek compensation, three of the six 2024 awards went to organizations testifying in the Xcel Energy rate case. However, the Citizens Utility Board received the largest amount for its recommendations in an integrated gas resource planning docket, an issue that would not have been eligible for compensation in the past.
Nonprofits typically use the money to offset the high costs of expert testimony or staff time related to cases where utilities usually spend millions to influence the commission’s decisions. Other intervenors often include larger nonprofits, industrial organizations, chambers of commerce, labor unions, national associations and, on occasion, cities and counties.
Frentz, who chairs the Senate’s Energy, Utilities, Environment and Climate Committee, said he thinks more organizations are out there that could provide testimony at the commission. But they must have the resources available before intervening, and believe their input will influence the Public Utilities Commission, he said.
Commissioner Sullivan said regulators have “seen a little bit more utilization” of the compensation law. The 2023 law specifically encouraged tribal participation, though no tribes have done so yet. Barriers may include a lack of familiarity with the commission or the need for a local budget to hire experts or allocate staff time to complex cases, Sullivan said.
‘A difficult needle to thread’
Solar entrepreneur and tribal clean energy advocate Robert Blake said he was not surprised to hear tribal nations had not participated in the expanded intervenor law. He said many are administratively stretched thin and focused on taking advantage of federal and state opportunities to fund clean energy projects on reservations.
Also, many of the issues that come before the commission involve large utilities that do not serve reservations, which often also get electricity from locally owned cooperatives, Blake said.
Community Power and Minnesota Interfaith Power & Light each received $17,984 after each requested nearly $26,000. Community Power employee Alice Madden said the money paid for expert witnesses who “cost hundreds of dollars per hour” but did not cover the staff time of either organization, which involved door-knocking and collecting more than 1,000 ratepayers’ comments.
“The intervenor compensation works for covering narrow costs but does not help people intervene and front the costs of that,” Madden said. “It accomplished allowing us to have extra witnesses, but it does not cover the full cost of intervening, nor of organizing to get community voices to the table.”
Minnesota Interfaith Power & Light Executive Director Julia Nerbonne was disappointed that the commission only partially reimbursed what it had requested, but she decided against appealing the decision. The organization has been involved in several dockets outside of rate cases and may someday ask for compensation for expert witnesses.
“I feel like the PUC has a difficult needle to thread, and I appreciate that they did that (provided compensation),” Nerbonne said. “I want to say thumbs up for expanding it.”
In its order, the commission granted compensation to the two organizations because they “made a unique contribution to the record, promoting public policies and representing interests of people of color and low-wealth households that would not otherwise have been adequately represented. The evidence and arguments they presented would not otherwise have been part of the record and were an important factor in producing a fair decision.”
Citizens Utility Board Executive Director Annie Levenson-Falk said the compensation received in 2024 was the amount it would have been for similar testimony in the past. The commission granted it compensation in two dockets, the largest of which was $41,385, for promoting a requirement that natural gas providers file periodic integrated resource plans that the commission has required from electric companies. The money paid for some of the expense of outside experts to research and testify on behalf of the organization.
In an order approving payment in the natural gas case, the commission said it had adopted the Citizens Utility Board’s recommendation that the state’s three natural gas utilities develop integrated resource plans. The commission determined how much each utility would pay the board, with Xcel providing nearly $30,000.
The prospect of compensation does not impact the Citizens Utility Board’s decisions on whether to intervene in commission matters. “It is something we keep in mind at the end if the PUC (Public Utilities Commission) has adopted a position we advocated,” Levenson-Falk said.
Levenson-Falk said she was unsurprised that organizations new to regulatory proceedings have yet to often participate in hearings or ask for reimbursements. “I think it is more difficult for a group that does not have utility regulatory professionals,” she said. “We have a team of folks who do this kind of work, but if it’s your first time coming to the PUC, it’s a challenging statute to take advantage of. It’s not easy.”
Energy CENTS Coalition received $36,785, the second largest disbursement under the new law, for testimony in the Xcel rate case that led the commission to adopt a “low-income, low-usage” discount. The organization provided “an important factor in producing a fair decision and would not otherwise have been part of the record,” the commission said in its order.
Executive Director George Shardlow wants to expand the organization’s involvement beyond rate cases to other issues. “It’s very helpful for a small consumer advocacy organization to have this added support to play in dockets over and above rate cases where consumer advocates need to show up,” he said.
The commission is required to issue a report on the intervenor law to the Legislature by July 2025.
Work headed by an Ohio waste-to-energy company to make plastic from biodigester byproducts is among seven projects recently selected for federal grants to develop new ways to use captured carbon dioxide.
The grants aim to advance the federal government’s goal of net-zero greenhouse gas emissions by 2050 in order to address ongoing climate change.
Quasar Energy Group, headquartered south of Cleveland in Independence, designs and builds anaerobic digesters, in which bacteria break down manure, food waste, or other organic materials. Methane is the systems’ main gas output and can be used to power generators or heat buildings, among other uses.
But anaerobic digesters also produce carbon dioxide, another greenhouse gas which has fewer commercial uses. Customers today include fertilizer manufacturers, oil and gas companies, and food and beverage makers. But those markets are tiny compared to the amount of CO₂ scientists think will need to be removed from industrial emissions, or even pulled from the atmosphere, to deal with climate change.
There’s a limit to how much carbon dioxide will be able to be stored in the ground, and community opposition to pipelines is another barrier to Midwest carbon capture plans. Using the carbon in products — such as cement or plastics — can be a useful alternative, especially if it displaces other fossil fuel inputs.
On Oct. 9, the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management announced funding for seven projects aimed at commercializing new approaches to incorporating carbon dioxide into products. The selections are aimed at hard-to-decarbonize sectors, said Ian Rowe, division director for carbon dioxide conversion at DOE’s office of Fossil Energy and Carbon Management.
“There’s not going to be a non-carbon solution for those needs in the future, but we should make them from more sustainable forms of carbon,” Rowe said. “And carbon dioxide represents a feedstock that you can use.”
How the process works
Ohio is already a leader in plastics production that relies heavily on the fossil fuel industry. Hundreds of companies across the state play a role in manufacturing or the supply chain. And midstream processing provides a ready supply of natural gas feedstocks from the Utica shale play.
Quasar Energy’s team designed its process for making plastic so it will work well with biodigesters. Basically, the project will use lipids from algae as a feedstock for a type of polyurethane. Liquid effluent from the biodigester could help grow the algae and supply nutrients for it, such as nitrogen and phosphorus.
Carbon dioxide from the biogester’s gas would be another ingredient in the process. The project team estimates the process could cut carbon dioxide emissions at least 25%, compared to current technology for making the plastic.
The process already works on a bench-scale level in the lab, said Tao Dong, a chemical engineer with the National Renewable Energy Laboratory in Colorado, who is also working on the project. Other team members named in the group’s grant application to DOE include Caixia “Ellen” Wan at the University of Missouri, Xumeng Ge at Quasar, and Ashton Zeller, director of research at Algix.
Costs are an important factor for the Quasar team’s project or any other products aimed at displacing those made from fossil fuel sources. Those costs include expenses for “cleaning up” the biodigester gas to separate methane from carbon dioxide. But a chunk of that expense also can be allocated to the separated methane, which has its own value for energy, either for on-site use or for sale for use elsewhere.
In other words, using the gas for making the plastic and for energy helps the economics for both uses, versus just flaring the gas into the atmosphere.
“Our process can be cost-effective,” said Yebo Li, Quasar’s chief innovation and science officer.
The plastic made from the process also has an advantage from being a non-isocyanate polyurethane, said Mel Kurtz, president of Quasar. The Occupational Safety and Health Administration links isocyanates to various health problems, and some are potential carcinogens. So, a polyurethane plastic that doesn’t have them should reduce risks for workers at factories who would then use the material to manufacture products, such as shoes or other items.
“If [farms] can add another revenue stream, that can improve the economics” for biodigesters on farms, said Andy Olsen, a senior policy advocate for the Environmental Law & Policy Center, whose work focuses on energy issues relating to agriculture and is not part of the project team.
It’s also important to make sure staff are properly trained to use and maintain the equipment properly, Olsen added, noting potential problems with leaked gases. Others question whether emissions offsets from some biodigesters have been overstated.
Next steps
The Quasar project team still faces hurdles. Work under the grant will focus on identifying and addressing risks so the technology can be scaled up.
One challenge will be maintaining algae ponds over time to provide the lipids for the process. Another will be optimizing the process for making them into small chemical building blocks called monomers and then assembling them into polymers, which are the plastic. Maintaining the reduction in greenhouse gas emissions over time also will be important.
Other Midwest grant recipients include LanzaTech, an Illinois sustainable fuels company, and Washington University in St. Louis, which will develop a low-carbon process to convert carbon dioxide to high-quality carbon nanotubes. Those will be tested for use as anodes for lithium-ion batteries.
Whether these and other carbon management projects can scale up quickly enough for the United States to achieve net-zero emissions by 2050 is a big question, said Rowe at DOE.
The energy source for the production process will also make a big difference, Rowe said. Algae can make their own food with carbon dioxide and sunlight. But it takes energy to maintain the ponds throughout the year. The equipment to process the algae and then make the lipids and biodigesters’ carbon dioxide into polyurethane also needs energy.
“Carbon management strategies go hand in hand with an increased deployment of cheap clean electricity. So, a lot of these won’t work without the other,” Rowe said. On the flip side, “if that energy does not come from clean sources, you’ve just produced something that is worse for the environment than if you dug it up and just used fossil carbon.”
BOONE – Engineers at Critical Materials Recycling break apart circuit boards, old transmissions and decommissioned wind turbines to extract and recycle rare earth materials.
Most recycling facilities extract things like copper and aluminum from the same scraps, but few know how to break down the batteries, meaning those rare earth material components are often lost.
Rare earth materials are a series of elements with properties like conduction or magnetism that make them essential to electronics. They’re also part of the 10%-15% of wind turbine materials that are not currently recycled.
Iowa-based Critical Materials Recycling was selected by the U.S. Department of Energy as one of six companies to receive a $500,000 cash prize and $100,000 in assistance from national laboratories. Twenty projects were selected in the initial phase of the DOE prize and awarded smaller sums, $75,000, to further develop their concepts.
The $5.1 million Wind Turbine Materials Recycling prize was funded by the Bipartisan Infrastructure Law as part of its efforts to achieve a carbon-pollution-free power sector by 2035.
Dan Bina, Critical Materials Recycling president and CEO, said his company was already interested in wind turbine recycling but the DOE funding expedited and prioritized the project.
“The prize will give us the funding to be able to do that initial leg work, and we’ll build a team to make it happen much sooner and probably much better,” Bina said.
The need for better wind turbine recycling
Tyler Christoffel, a technology manager for materials manufacturing and design innovation at the DOE wind energy technologies office, said a big goal of the office is to create a circular economy.
“Basically looking at the ways that we can make our materials more sustainable, be able to reuse them, make them go further,” Christoffel said.
He said about 90% of the turbines, mostly the parts made of steel and concrete, have an established recycling process.
“The work in the program was really focusing on those materials that have been hard to recycle so far, developing technologies so that you can more cost effectively recycle them and then get them into secondary markets,” Christoffel said.
Those materials include the fiber reinforced composites that make up the blades, housing components and the rare earth materials found in the turbine generators.
Christoffel said increasing recycling infrastructure and technology will help reduce waste at all stages of the turbines, from the production process, to the end of life and updating stages that occur less frequently.
Critical materials recycling is a big focus for the department across various industries, not just wind technology. Most of that research is going on at the Critical Materials Innovation Hub led by Ames National Laboratory, here in Iowa.
Ikenna Nlebedim, a scientist at the hub who worked with Critical Materials Recycling, said rare earth recycling is “a key strategy” for U.S. sustainability, security and technological advancement.
“Recycling rare earth elements is crucial for the United States, particularly in the context of wind generators, electronic waste (e-waste), and electric vehicles,” Nlebedim said. “It helps reduce the environmental damage caused by mining and processing, conserves finite resources, and supports a circular economy by reusing materials.”
Most of these minerals are mined overseas, with a majority coming from China, which spurred of the U.S. to develop better recycling capacity.
The gray rectangles around the core of this old wind turbine are magnets made of rare earth materials. Critical Materials Recycling used this smaller turbine as part of its research to recycle the turbines. (Photo by Cami Koons/Iowa Capital Dispatch)
How it works
Critical Materials Recycling worked with the Ames National Laboratory to use an acid-free dissolution recycling (ADR) process that has little to no waste, saves more of the metal components and doesn’t expose technicians to dangerous acids.
Nlebedim, who led the research, said the hub invented the process in 2015 and has worked with TdVib, Bina’s other company that produces a very specific type of material used in sonar-like technologies. Bina’s team commercialized the process with its Critical Materials Recycling company.
“ADR is both environmentally friendly and efficient, eliminating the need for pre-heating and reducing pollution, making it a greener alternative to traditional methods,” Nlebedim said in a statement.
The DOE prize went to Critical Materials Recycling to apply the acid-free dissolution process to wind turbines.
The first step in the process is to break apart the various “feedstocks,” — a wind turbine, car part or other electronics brought to the company — into their components.
Computer hard drives, already shredded by the technology companies for security purposes, get tossed in a rock-tumbler like machine with a copper salt that Bina said selectively dissolves the rare earth materials and pulls them out into a solution.
The rest of the hard drive, which has copper, gold and aluminum, can go to a more traditional recycler after CMR has extracted the approximately 2% rare earth materials from the hard drives.
“We insert ourselves into the process, and actually add value, because now there’s more copper,” Bina said.
The copper salt used to pull out rare earth materials leaves a copper residue on the shredded hard drives, which adds value to the recyclers who traditionally strip the hard drives for gold, copper and aluminum. Rare earth materials are rarely extracted from hard drives because they make up a relatively small percentage of the materials and were difficult to separate with other processes.
The process is more or less the same moving up the line to larger, discarded magnets and the “swarf,” which is like magnet sawdust, accumulated from cutting them to size.
Bigger items, like a transmission from a sedan or the generator of a wind turbine, have to be taken apart before they undergo the same process. Some of these magnets can also be recut and used again in various components.
Dan Bina of Critical Materials Recycling shows the various components broken apart from a transmission to harvest the rare earth from inside. (Photo by Cami Koons/Iowa Capital Dispatch)
Each type of magnet has a slightly different process, but Bina said they go through a selective leaching process, like the hard drives in the copper salt tumbler, and come out as a rare earth solution.
The solution then goes through a series of tanks where it is precipitated into a solid form and cleaned to a rare earth material that Bina said is “exactly” like what a buyer would find on the open market.
Bina said the water used in the process goes through treatment and filtration and can be used again.
“We’re not using any strong acids throughout the entire process, we don’t produce any hazardous waste, and we almost have no waste whatsoever,” Bina said.
An acid process would break down everything but rare earth materials, which are typically such a small portion of the electronic that it rarely makes financial sense to do. Critical Materials Recycling pulls the copper and aluminum to sell to smelters, to make up for the cost of gathering the rare earth materials.
“In order to get the rare earth from something like this, you have to valorize everything,” Bina said.
Dan Bina of Critical Material Recycling said even these small, pilot-project sized tanks can process rare earth materials from over 2 million hard drives a year. (Photo by Cami Koons/Iowa Capital Dispatch)
Moving forward
Soon, as part of the second phase of the DOE prize, Bina said his team will process several of the big, 4-megawatt or larger, turbines.
“Not just looking to see if we can do it, but actually doing it,” Bina said.
He said part of the challenge is building a team and the partnerships to operate. He doesn’t have a contract in place but has been in conversation with big energy and wind companies in Iowa to work into their decommissioning plans.
Dan Bina, president and CEO of Critical Materials Recycling in Boone. (Photo by Cami Koons/Iowa Capital Dispatch)
A spokesperson with MidAmerican Energy said the company was aware of Critical Materials Recycling and wrote a letter of support for its project with DOE.
“We look forward to seeing how the company develops and we embrace the potential for additional recycling and disposal options,” the statement read. “The more options, the better.”
Some of the other recipients of the DOE prize are developing processes for recycling wind turbine blades, which had proven to be rather difficult, as more than one company has run into problems processing the blades quickly enough.
MidAmerican has partnered, in the past, with a company that was later sued by the state for leaving piles of wind turbine blades, destined for recycling, around the state. MidAmerican has since partnered with another facility in Fairfax for recycling the blades.
Bina hopes wind turbines become a large part of his business, which he has plans to expand into a larger space soon. But, since wind turbines are typically decommissioned en masse at intervals of 10 or 20 years, the other items, like hard drives and swarf will be constant inputs for the plant.
“We have seen numerous pieces of these feedstocks just getting thrown away, in our eyes, the rare earth anyways, because there just isn’t that technology, that industry in place to capture them,” Bina said. “
The team in Boone is at the beginning of the growing industry.
“Rare earth recycling, five years or so ago, was unheard of,” Bina said.
Christoffel said the development of a circular economy of these expensive materials will help the U.S. to more sustainably build out expanded wind and solar infrastructure.
“It’ll provide some insulation to our supply and help us to ensure a more sustainable build out of clean energy domestically,” Christoffel said.
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