Dive Brief:
- Missouri Gov. Jay Nixon (D) this week threw his support behind Clean Line Energy Partner's (CLEP) proposed Grain Belt Express project, a $2 billion, 780-mile proposed transmission line that would carry wind power from western Kansas to Illinois.
- State regulators rejected the project last year, but EnergyWire reports Public Service Commission Chair Daniel Hall has indicated he would like to see the company re-file the plan.
- According to Nixon, the project would mean a $500 million investment in Missouri, 1,500 construction jobs and access to 500 MW of low-cost, clean power.
Dive Insight:
Missouri regulators turned down the Grain Belt Express project last year, finding little benefit to the state, but CLEP has since committed to landowner protections and added offtake infrastructure, winning a nod from Gov. Nixon this week.
“With these new protections for landowners and millions of dollars in savings for consumers, the Grain Belt Express Clean Line is a good deal for Missouri,” Nixon said in a statement. “In addition to reducing energy costs, this $500 million construction project will also boost our economy and create good-paying jobs.”
At the urging of PSC chief Hall, the company has said it intends to refile the project. Nixon said landowner protections were a key to his support.
The company has agreed to offer the option of binding arbitration to resolve any compensation disputes, and will establish a Missouri Agriculture Protocol and follow guidelines to avoid and mitigate any impacts to agricultural fields or activities. CLEP also agreed to establish a fund to ultimately decommission the project when it nears the end of its life and committed to have a local firm update land value assessments.
"In the event land values have decreased since the last assessment because of commodity prices or any other reason, the Grain Belt Express will honor the higher of the values," according to Nixon's statement. "Also, compensation will not be reduced after an Order has been issued approving the project by the Missouri Public Service Commission."
Earlier this month, The Missouri Joint Municipal Electric Utility Commission contracted for up to 200 MW of capacity on the Grain Belt Express. About 35 of the 67 members of the municipal utility group have committed to between 50 MW and 100 MW of the line’s capacity, and leaders say more contracts could follow.