Questions & Answers

Why is the Natural Gas Innovation Act needed?

This legislation would establish a state regulatory policy that encourages natural gas utilities to use clean energy resources and innovative technologies to help the state meet its renewable energy and greenhouse gas reduction goals.

In particular, this legislation would create the opportunity for a natural gas utility to submit an “alternative resource plan” to the Minnesota Public Utilities Commission. In the plan, a natural gas utility could propose to offer new clean energy options, such as renewable natural gas (RNG) and renewable hydrogen gas, as well as innovative energy-efficiency and carbon-capture technologies.



  • Diversifying the state’s energy supply with local energy sources,
  • Encouraging technological innovation,
  • Improving waste management and
  • Supporting rural economic development.


How much would the Natural Gas Innovation Act cost and what impact could it have on customers’ bills?

The Natural Gas Innovation Act is policy legislation and does not request any appropriation from the Minnesota Legislature.

Under the legislation, the Public Utilities Commission would have to approve a natural gas utility’s “alternative resource plan.” To limit the potential impact on customers, the costs of the plan must be no more than five percent of the utility’s total annual revenue requirement. The actual cost for any specific customer would depend on their gas usage and the details of the alternative resource plan as reviewed and approved by the Commission. For a typical CenterPoint Energy residential customer, the maximum expected cost could be about one dollar extra on their monthly bill, based on current rates and the specific plan approved by the Commission.

Do other states have policies like this legislation?

Several states – including Oregon, Washington and Nevada – have passed recent laws specifically to promote renewable natural gas, including requirements for natural gas utilities to purchase RNG and voluntary RNG purchase programs for utility customers.

The Minnesota legislation is distinctive because it encompasses a broader range of potential clean energy resources and technologies.


The legislation would actually help to answer this question for Minnesota by directing the Minnesota Department of Commerce to prepare a statewide inventory of potential RNG resources, including a list of all potential sources in the state and estimated energy available from each source.


Is hydrogen gas really an option?



CenterPoint Energy is currently exploring a potential pilot project in Minnesota that would produce hydrogen gas with solar power.

How would carbon capture technology work?




Depending on how much low- and no-carbon energy is actually on the electric grid, electrification is one approach that may reduce emissions and serve as a cost-effective alternative energy source for uses such as electric vehicles or to replace propane for space and water heating.



Electrification of natural gas end uses is also expensive. Currently, natural gas rates are significantly lower than electricity rates in Minnesota. Also, adding new electric heating equipment and appliances to replace natural gas in homes and businesses would be costly and may actually be less energy efficient. In fact, greater energy efficiency remains the most cost-effective approach to reducing greenhouse gas emissions, and CenterPoint Energy’s efficiency programs have long been recognized as a national leader in helping customers save both energy and money.

Recent research also indicates that the use of RNG could reduce emissions from buildings and industrial processes more cheaply and simply than electrification. With the deployment of innovative energy-efficiency and carbon-capture technologies, there is further potential for the natural gas system to reduce greenhouse gas emissions compared to electrification.