Energy policy in Minnesota

in  Minnesota

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Minnesota.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Minnesota.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Minnesota, and the electric reliability organizations in Minnesota.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Minnesota, a state profile of Minnesota from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

## Contents

* 1 Policy
* 1.1 State regulations
* 1.2 Renewable energy policies
* 1.2.1 Renewable Portfolio Standard
* 1.2.2 Grant programs
* 1.2.3 Loan programs
* 1.3 Energy efficiency regulations
* 1.4 Net metering
* 1.5 Recent legislation
* 1.6 Ballot measures
* 1.6.1 Energy policy ballot measures
* 1.6.2 Utility policy ballot measures
* 2 Production
* 2.1 Total energy production
* 2.2 Nonrenewable energy production
* 2.3 Oil and gas production (2004-2014)
* 3 Energy usage
* 3.1 Consumption
* 4 Prices and taxes
* 4.1 Energy prices
* 4.2 Energy spending
* 4.3 Fuel taxes
* 4.4 Federal tax
* 5 Utilities
* 5.1 Background
* 5.2 Electricity markets
* 5.3 Electric reliability organizations
* 5.3.1 Minnesota EROs
* 6 Background
* 6.1 Background on energy resources
* 6.2 Minnesota energy profile
* 6.3 State profile
* 6.3.1 Presidential voting pattern
* 6.3.1.1 Pivot Counties (2016)
* 6.3.1.2 Pivot Counties (2020)
* 6.3.2 Economic indicators
* 6.4 See also
* 6.5 Recent news
* 6.6 Footnotes

# Policy[edit]

### State regulations[edit]

According to the U.S. Energy Information Administration, there were no proven crude oil or natural gas reserves in Minnesota as of 2015; consequently, there were no state regulations on oil and gas operations.[1]

### Renewable energy policies[edit]

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.[2]

#### Renewable Portfolio Standard[edit]

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.[3][4]

As of February 2017, Minnesota was one of 30 states with a Renewable Portfolio Standard. In 2007, the Minnesota State Legislature enacted a mandatory standard to replace the state's voluntary standard. Investor-owned utilities, electric cooperatives, publicly owned municipal utilities, and power districts must generate or procure at least 25 percent of their retail electricity sales from eligible renewable energy sources by the year 2025. Xcel Energy, the state's sole nuclear energy utility, must generate or procure 30 percent of their electricity sales from renewable energy by the year 2030. In 2013, the legislature required that investor-owned utilities must have an additional 1.5 percent of their sales come from solar energy by the year 2020. In addition, the legislature required investor-owned utilities to procure 10 percent of their sales from solar energy by the year 2030. Eligible renewable sources include solar energy, wind energy, hydroelectric power facilities with a capacity of less than 100 megawatts (MW), hydrogen generated from another eligible source, and biomass.[5][6]

#### Grant programs[edit]

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.[2]

As of March 2015, Minnesota was one of nine states with utility-run, or locally run grant programs for renewable energy. See the map below for grant programs by state.[2]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

#### Loan programs[edit]

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.[2]

As of March 2015, Minnesota was one of 36 states with a state-run loan program and locally run, utility-run, and/or privately run loan programs for renewable energy.[2]

The Minnesota Department of Commerce funds the Home Energy Loan Program, which is distributed by the Minnesota Center for Energy and Environment. The program distributes loans of up to $20,000 for single-family homes or individuals who own 1-4 unit rental properties. These loans must be used for energy efficiency measures on existing properties. Geothermal energy, geothermal heat pumps, and geothermal water heaters are eligible renewable energy technologies under the program.[7]

The Minnesota Housing Finance Agency operates the Fix Up Loan program, which provides loans for energy efficiency measures on residential properties. Loans can be issued for up to $15,000. Wind generators and solar panels are eligible renewable energy technologies under the program.[8][9]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Minnesota can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

### Energy efficiency regulations[edit]

As of February 2017, Minnesota required all new residential and commercial buildings to meet energy efficiency standards. All residential buildings must meet energy efficiency standards for heating, ventilating, air conditioning, water heating, and lighting found in the 2012 International Energy Conservation Code (IECC). Commercial buildings must meet similar standards under the ASHRAE 90.1-2010 Standard or and 2012 IECC.[10][11]

### Net metering[edit]

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.[12][13][14]

As of October 2016, Minnesota was one of 41 states with a statewide net metering policy, which applies to investor-owned utilities, publicly owned municipal utilities, and electric cooperatives. Net metering is offered to customers with eligible renewable energy facilities with less than 1,000 kilowatts (kW) in capacity if they are customers of an investor-owned utility. Customers of municipal utilities and electric cooperatives are eligible for net metering if they have eligible facilities with less than 40 kW in electric capacity. Eligible renewable energy sources include solar energy, wind energy, hydroelectric power with a capacity of less than 100 megawatts, and biomass.[15][16]

For a complete list of net metering programs by state, click here.[5][17]

### Recent legislation[edit]

The following is a list of recent energy policy bills that have been introduced in or passed by the Minnesota State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

### Ballot measures[edit]

#### Energy policy ballot measures[edit]

See also: Energy on the ballot and List of Minnesota ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Minnesota.

#### Utility policy ballot measures[edit]

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Minnesota.

# Production[edit]

The sections below include statistics on total energy production in Minnesota, oil and natural gas production in Minnesota, oil and gas production in Minnesota over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Minnesota for production.

### Total energy production[edit]

The table below provides information regarding energy production in Minnesota in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.[18]

Energy production, 2014 (in billion Btu)

State | Biomass | Coal | Crude oil | Nuclear energy | Natural gas | Renewable | Total*
Minnesota |  159,583  |  0  |  0  |  132,904  |  0  |  334,063  |  626,550
Iowa |  526,781  |  0  |  0  |  43,431  |  0  |  713,583  |  1,283,795
South Dakota |  144,400  |  0  |  10,428  |  0  |  15,878  |  223,482  |  394,188
Wisconsin |  73,257  |  0  |  0  |  98,807  |  0  |  199,796  |  371,860
U.S. average | 38,759  |  404,181  |  307,301  |  160,980  |  585,731  |  187,132  |  1,684,085
*Total figures were computed by Ballotpedia.
Source: U.S. Energy Information Administration, "Google Sheets API"

### Nonrenewable energy production[edit]

The table below provides information regarding nonrenewable energy production in Minnesota. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.[1][19]

Nonrenewable energy production

State | Coal, productive capacity
(short tons)  | Natural gas
(million cubic feet)  | Crude oil
(thousand barrels)
Date  |  2014  |  December 2014  |  April 2016
Minnesota |  0  |  0  |  0
Iowa |  0  |  0  |  0
South Dakota |  0  |  1,282  |  121
Wisconsin |  0  |  0  |  0
U.S. average |  24,874,314  |  43,350  |  4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

### Oil and gas production (2004-2014)[edit]

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

Because Minnesota had no crude oil or natural gas reserves as of 2015, there was no oil or gas production in the state.[1]

# Energy usage[edit]

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

### Consumption[edit]

The table below provides information about energy consumption by source in Minnesota in 2014. Information from select surrounding states is provided for comparison.[1]

Energy consumption in Minnesota, 2014 (in billion BtuBtu or British thermal units is a means of measuring the heat contained in fuels. "It is the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are often converted into Btu to make it easier to compare different types of fuels with different energy contents and prices. For comparison, one gallon of gasoline equals 120,524 Btu.[20])

State | Coal | Crude oil and petroleum products | Natural gas | Nuclear energy | Solar | Wind | Geothermal | Hydropower | Wood and wood waste | Biomass
Minnesota |  313,073  |  607,762  |  489,901  |  132,904  |  670  |  92,162  |  1,075  |  5,216  |  75,357  |  162,992
Iowa |  401,151  |  439,727  |  342,431  |  43,431  |  380  |  155,077  |  1,281  |  8,356  |  21,708  |  241,138
South Dakota |  33,062  |  117,723  |  83,464  | 0  |  10  |  22,218  |  1,868  |  52,288  |  2,699  |  62,730
Wisconsin |  417,096  |  564,769  |  477,923  |  98,807  |  833  |  15,387  |  615  |  23,507  |  86,197  |  136,809
U.S. average |  359,931  |  716,746  |  544,353  |  172,585  |  20,739  |  531,323  |  16,555  |  61,397  |  65,345  |  101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

# Prices and taxes[edit]

The sections below include information on energy prices and spending in Minnesota, fuel taxes and state taxes in Minnesota and in neighboring states, and an overview of the federal tax on gasoline.

### Energy prices[edit]

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.[21][22]

The table below provides information about energy prices in Minnesota as of April 2016. Information from select surrounding states is provided for comparison.[1]

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in Minnesota

State | Natural gas
Dollars per thousand cubic foot  | Electricity
Cents per kilowatthour
Date  |  April 2016  |  April 2016
Minnesota |  $7.59  |  9.8
Iowa |  \--* |  7.7
South Dakota |  $6.85  |  9.6
Wisconsin |  $7.57  |  10.7
U.S. average |  $11.20  |  10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Minnesota in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Minnesota by sector (in cents per kilowatthour)

State | Commercial | Industrial | Residential | Transportation | Average (all sectors)
Date  |  April 2016  |  April 2016  |  April 2016  |  April 2016  |  April 2016
Minnesota |  9.8  |  7.1  |  12.6  |  9.8  |  9.8
Iowa |  8.7  |  5.0  |  11.7  |  8.7  |  8.5
South Dakota |  9.3  |  7.4  |  11.4  |  9.3  |  9.4
Wisconsin |  10.9  |  7.4  |  14.5  |  10.9  |  10.9
U.S. average |  10.48  |  7.45  |  13.05  |  10.47  |  10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

### Energy spending[edit]

The table below provides information about energy spending in Minnesota as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Minnesota, 2014 (in millions of dollar except per capita spending)

State | Petroleum | Coal | Natural gas | Nuclear | Per capita spending
Minnesota |  $15,168  |  $643  |  $3,647  |  $119  |  $4,638
Iowa |  $11,483  |  $723  |  $2,579  |  $35  |  $5,796
South Dakota |  $3,156  |  $72  |  $549  |  $0  |  $5,648
Wisconsin |  $15,161  |  $1,019  |  $3,981  |  $72  |  $4,592
U.S. average |  $17,267  |  $1,322  |  $3,786  |  $574  |  $5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

### Fuel taxes[edit]

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.[23][24]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Minnesota as of January 2016. As of January 2016, Minnesota levied a 28.6 cent state gasoline tax and a 28.6 cent state diesel tax. Minnesota ranked 25th highest in total gasoline taxes (federal and state) and 23rd highest in total diesel fuel taxes as of January 2016.[25][26]

State motor fuel taxes in cents per gallon, January 2016

State | State gasoline tax | Total gasoline tax | Rank | State diesel tax | Total diesel tax | Rank
Minnesota |  28.6  |  47.0  |  25  |  28.6  |  53.0  |  23
Iowa |  32.0  |  50.4  |  14  |  33.5  |  57.9  |  13
South Dakota |  30.0  |  48.4  |  22  |  30.0  |  54.4  |  21
Wisconsin |  32.9  |  51.3  |  12  |  32.9  |  57.3  |  16
U.S. average |  30.29  |  48.69  |  N/A  |  30.01  |  54.41  |  N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

### Federal tax[edit]

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.[27]

# Utilities[edit]

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Minnesota, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Minnesota.

### Background[edit]

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.[28][29]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.[29]

### Electricity markets[edit]

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.[30][31]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.[30][31]

As of February 2017, Minnesota was one of 40 states with a regulated electricity market. The Minnesota Public Utilities Commission oversees the state's investor-owned electric utilities, power plants, and electric transmission lines. The commission is responsible electricity rates, energy planning and certification of power plants and transmission lines, mergers and acquisitions, and the resolution of formal complaints. As of February 2017, Minnesota had four investor-owned utilities: Minnesota Power, Northwestern Wisconsin Electric, Otter Tail Power Company, and Xcel Energy. In addition, the state had 45 electric cooperatives and 125 municipal electric utilities, which are not regulated by the commission.[32][33]

### Electric reliability organizations[edit]

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.[34]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are comprised of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.[35]

#### Minnesota EROs[edit]

As of February 2017, the Midwest Reliability Organization (MRO) was the NERC-affiliated corporation that oversees electricity in Minnesota. The MRO conducts studies and assessments of the electricity grid, conducts long-term planning, and develops regional standards for electricity reliability.[36]

# Background[edit]

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Minnesota (from the U.S. Energy Information Administration), a general profile of Minnesota (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Minnesota.

### Background on energy resources[edit]

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.[37]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.[37]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.[37]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.[37]

### Minnesota energy profile[edit]

According to the U.S. Energy Information Administration, Minnesota has no coal, oil, or natural gas reserves and thus has no fossil fuel production. The Mississippi River is used to transport petroleum and coal to Minnesota while the Port of Duluth on Lake Superior receives petroleum and coal for use in the state. In addition, coal is delivered by railroad from Wyoming and Montana, and several pipelines deliver oil to Minnesota refineries.[1]

Around 50 percent of petroleum consumed in Minnesota came in the form of motor vehicle gasoline as of 2015. The state's largest natural gas user as of 2015 was the industrial sector, which accounted for approximately 33 percent of the state's natural gas use. Two-thirds of Minnesota households also used natural gas for home heating in 2015.[1]

As of January 2016, coal-fired power plants produced the largest share of the state's net electricity generation. Minnesota's two nuclear power plants, which are located near the Mississippi River, accounted for approximately 20 percent of the state's net electricity generation as of January 2016.[1]

As of 2015, Minnesota was in the top 10 states in installed wind energy capacity and net electricity generation from wind. In 2015, wind accounted for approximately 17 percent of the state's net electricity generation. The state also had hydroelectric power facilities, which were located primarily along the Mississippi River. Other sources of renewable energy in Minnesota included municipal solid waste, landfill methane gas, and wood products.[1]

## State profile[edit]

Demographic data for Minnesota

| Minnesota| U.S.
Total population:| 5,482,435| 316,515,021
Land area (sq mi):| 79,627| 3,531,905
Race and ethnicity**
White:| 84.8%| 73.6%
Black/African American:| 5.5%| 12.6%
Asian:| 4.4%| 5.1%
Native American:| 1%| 0.8%
Pacific Islander:| 0%| 0.2%
Two or more:| 2.7%| 3%
Hispanic/Latino:| 5%| 17.1%
Education
High school graduation rate:| 92.4%| 86.7%
College graduation rate:| 33.7%| 29.8%
Income
Median household income:| $61,492| $53,889
Persons below poverty level:| 12.2%| 11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015)
Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Minnesota.

* * *

**Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

### Presidential voting pattern[edit]

See also: Presidential voting trends in Minnesota

Minnesota voted for the Democratic candidate in all five presidential elections between 2000 and 2016.

#### Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, 19 are located in Minnesota, accounting for 9.22 percent of the total pivot counties.[38]

#### Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Minnesota had 15 Retained Pivot Counties and four Boomerang Pivot Counties, accounting for 8.29 and 16.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More Minnesota coverage on Ballotpedia

* Elections in Minnesota
* United States congressional delegations from Minnesota
* Public policy in Minnesota
* Influencers in Minnesota
* Minnesota fact checks
* More...

### Economic indicators[edit]

See also: Economic indicators by state

Minnesota's GDP increased by 1.4 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[39][40][41]

In 2013, Minnesota had the largest percentages of residents that earned incomes below the federal poverty level (FPL) and at least 400 percent above the FPL. Minnesota's median annual household income between 2011 and 2013 was $59,847, higher than in any neighboring state.[42][43][44][45]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state

State  |  Distribution of population by FPL* (2013)  |  Median annual income (2011-2013)  |  Unemployment rate  |  Total GSP (2013)†
Under 100%  |  100-199%  |  200-399%  |  400%+  |  Sept. 2013  |  Sept. 2014
Minnesota |  12%  |  14%  |  28%  |  46%  |  $59,847  |  4.9%  |  4.1%  |  $312,081
North Dakota |  10%  |  17%  |  33%  |  40%  |  $55,583  |  2.8%  |  2.8%  |  $56,329
South Dakota |  11%  |  17%  |  35%  |  37%  |  $50,488  |  3.7%  |  3.4%  |  $46,732
Wisconsin |  11%  |  15%  |  31%  |  42%  |  $54,205  |  6.6%  |  5.5%  |  $282,486
United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
† Median annual household income, 2011-2013.
‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

## See also[edit]

* Energy policy in the U.S.
* Fracking in Minnesota
* Net metering
* Renewable Portfolio Standard
* Environmental policy in Minnesota

## Recent news[edit]

The link below is to the most recent stories in a Google news search for the terms Minnesota energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Energy policy in Minnesota - Google News

## Footnotes[edit]

1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 U.S. Energy Information Administration, "Minnesota State Energy Profile," May 19, 2016
2. ↑ 2.0 2.1 2.2 2.3 2.4 U.S. Environmental Protection Agency, "Chapter 3. Funding and Financial Incentive Policies," accessed March 1, 2017
3. ↑ National Renewable Energy Laboratory, “State & Local Activities,” accessed January 30, 2014
4. ↑ National Conference of State Legislatures, "State Renewable Portfolio Standards and Goals," accessed March 14, 2017
5. ↑ 5.0 5.1 Institute for Energy Research, "Minnesota Energy Facts," accessed March 15, 2017
6. ↑ DSIRE, "Renewable Energy Standard - Michigan," accessed March 25, 2017
7. ↑ Minnesota Center for Energy and Environment, "Home Energy Loan Program," accessed March 25, 2017
8. ↑ Minnesota Housing Finance Agency, "Fix Up Program," accessed March 25, 2017
9. ↑ Minnesota Housing Finance Agency, "Eligible Improvements under Fix Up Home Improvement Loans," accessed March 25, 2017
10. ↑ DSIRE, "Louisiana Building Energy Code," accessed March 24, 2017
11. ↑ DSIRE, "Minnesota - Building Energy Code," accessed March 25, 2017
12. ↑ Database of State Incentives for Renewables and Efficiency, "Glossary," accessed October 22, 2014
13. ↑ Edison Electric Institute, "Straight Talk About Net Metering," September 2013
14. ↑ Call Me Power, "What is the difference between wholesale and retail electricity?" March 12, 2015
15. ↑ DSIRE, "Minnesota - Net Metering," accessed March 25, 2017
16. ↑ Minnesota Revisor of Statutes, "216B.1691 Renewable Energy Objectives," accessed March 25, 2017
17. ↑ DSIRE, "Net metering programs," accessed February 28, 2017
18. ↑ U.S. Energy Information Administration, "British Thermal Units (Btu)," December 15, 2014
19. ↑ U.S. Energy Information Administration, "Table 13. Productive Capacity and Capacity Utilization of Underground Coal Mines by State and Mining Method, 2014," accessed July 19, 2016
20. ↑ U.S. Energy Information Administration, "British Thermal Units (Btu)," December 15, 2014
21. ↑ RWE, "How the electricity price is determined," accessed April 21, 2015
22. ↑ Forbes, "How The Price For Power Is Set," December 26, 2012
23. ↑ U.S. Energy Information Administration, "Gasoline and Diesel Fuel Update," accessed April 25, 2016
24. ↑ Tax Foundation, "How High Are Gas Taxes in Your State?" July 23, 2016
25. ↑ The Washington Post, "A (very) brief history of the state gas tax on its 95th birthday," February 25, 2014
26. ↑ American Petroleum Institute, "Motor Fuel Taxes," accessed April 27, 2016
27. ↑ U.S. Department of Transportation, "When did the Federal Government begin collecting the gas tax?" November 18, 2015
28. ↑ Business Dictionary, "Electric utility," accessed February 28, 2017
29. ↑ 29.0 29.1 U.S. Department of Energy, "A Primer on Electric Utilities, Deregulation, and Restructuring of U.S. Energy Markets," May 2002
30. ↑ 30.0 30.1 Electric Choice, "Map of Deregulated Energy States and Markets (Updated 2017)," accessed February 28, 2017
31. ↑ 31.0 31.1 Allied Power Services, "Deregulated States," accessed February 28, 2017
32. ↑ Minnesota Public Utilities Commission, "Find a Utility Company," accessed March 25, 2017
33. ↑ Minnesota Public Utilities Commission, "Utility Regulation," accessed March 25, 2017
34. ↑ WhatIs.com, "North American Electric Reliability Corporation (NERC)," accessed February 28, 2017
35. ↑ North American Electric Reliability Corporation, "Frequently asked questions," August 2013
36. ↑ Midwest Reliability Organization, "About MRO," accessed March 16, 2017
37. ↑ 37.0 37.1 37.2 37.3 U.S. Department of Energy, "How Much Energy Does Your State Produce?" November 10, 2014
38. ↑ The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.
39. ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
40. ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
41. ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
42. ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
43. ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
44. ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
45. ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015

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