Committee debates bill to classify wood waste as eligible carbon-free energy; amendment adopted and bill laid over

Senate File 27-10, presented by Senator Farnsworth, would broaden the statute's definition of eligible carbon-free electricity to include energy generated from wood waste such as limbs, branches, and byproducts of timber harvesting and discarded wood products.

Proponents emphasized local economic benefits and forest-management uses for biomass. Luke Peterson, general manager of Hibbing Public Utilities, told the committee his facility operates a 35-megawatt cogeneration plant that provides steam and heat while supporting local jobs. "In a full cogent mode, we are 80% efficient ... We use our fuel responsibly," Peterson said, adding the plant supports union jobs and regional economic resilience.

Peter Wood, a third-generation logger representing the American Loggers Council, described biomass feedstocks as residues and forest-cleanup material and said markets for that material help forest management and reduce fire risk.

Rick Horton, executive vice president of Minnesota Forest Industries, said woody biomass can provide reliable, dispatchable baseload power and argued the life-cycle carbon balance and sustainable forest practices support counting some biomass as carbon neutral. "When we look at the forest across the entirety of the landscape in over hundred year time spans, what we see is that more carbon is absorbed and stored than is emitted in this system," Horton said.

Opponents at the hearing included Sarah Meradian, government relations and policy director for CURE, who testified in strong opposition. Meradian said the state's 2023 law defines "carbon free" as electricity generated without emitting carbon dioxide and argued that combustion of woody biomass emits CO2 as well as other pollutants that can harm public health. She also warned that the bill's inclusion of "discarded wood products" could permit combustion of treated lumber and contaminated materials that produce toxic emissions and disproportionately affect low-income or minority communities.

Senator Farnsworth said the amendment adopted in committee (A2) removed a provision that would have limited the bill to facilities that generate at least 50% of a utility's annual electricity, to avoid narrowly targeting a single plant and to broaden applicability. He described the proposal as a way to use waste wood that otherwise would decompose and emit methane and CO2 and argued it can help prevent wildfires and provide heat and electricity.

Committee members asked questions about public health, lifecycle carbon accounting, and the role of the Public Utilities Commission (PUC). Senator Dibble and others emphasized the complexity of lifecycle analyses and noted the PUC has an open docket interpreting the 100% carbon-free law passed in 2023; both proponents and opponents urged care to avoid unintended consequences.

The A2 amendment was adopted by voice vote and the bill was laid over for possible inclusion in the Energy Omnibus. The testimony and member remarks indicate ongoing policy and regulatory questions about how biomass should be treated under Minnesotas carbon-free standard and how to protect public health and environmental quality while supporting rural economic and forest-management goals.