My name is Kayla Christensen, and I am the new Public Affairs Director at K2 & Company. I spent 3 years as Executive Director of the Minnesota Conservative Energy Forum. In that time, I was in the thick of major energy policy fights in the Midwest and across the nation. Now that we’re on the other side of the 2024 election, I think there will be some significant energy policy battles and opportunities ahead of us next year in the Midwest and the Midcontinent Independent System Operator (MISO) region.
The question isn’t about choosing which sources of energy we should be using—it’s about recognizing that we need more energy, from all available sources, to meet our growing needs. In a cleaner energy economy, getting decisionmakers to acknowledge the reality of this will be crucial. With Republicans now in control in Washington, and political realignments in many Midwest states, firms and clients interested in energy issues should begin gearing up now with robust public affairs campaigns to support their priorities in 2025.
Here are the things K2 is keeping an eye on in 2025 across Minnesota, Wisconsin, the Dakotas and Illinois:
Minnesota Gains Influential Voices in Agriculture in Congresswoman Craig and Senator Klobuchar
For anyone eyeing the Farm Bill or federal fights around issues like biofuels, Minnesota will be a key player in the federal agriculture scene. For the first time since Congressman Collin Peterson departed DC, Minnesota Democrats will play a pivotal role in helping shape ag policy in Washington. Congresswoman Craig and Senator Klobuchar (also the third ranking Dem in the Senate), are serving as minority leads of the House and Senate Ag Committees. Both known for focusing on rural issues and a more moderate reputation, expect them both to have influence, even with full Republican control of Congress.
Looking at What’s Next in Biofuels
Permitting challenges for biofuel production remain a significant hurdle. The challenges involve navigating complex regulatory frameworks that intertwine at the federal, state and local levels–which can vary widely depending on the location and scale of the project. Environmental studies and permits delay projects and increase costs, while public opposition and misinformation can stir up additional problems. Public affairs efforts to push streamlined permitting processes, advocate for national energy security, advance positive press around ethanol, and tell the story of sustainability with biofuels will be important in 2025.
Sustainable Aviation Fuel (SAF) will also be a major focus in the coming year as the U.S. competes with Brazil to become the world’s leading SAF producer. Addressing permitting challenges in the U.S. will be critical. If Brazil outpaces us in large-scale production, the Amazon Rainforest could be at risk, with increased deforestation to support SAF production. This is another place where America can demonstrate it can produce energy more efficiently and more clean than other places across the globe .
Fights Over Data Centers Hold Both Major Energy and Tech Implications
Data centers will take center stage the next few years as companies try to figure out how to build out the infrastructure needed to meet our nation’s growing storage needs and rapidly evolving AI capabilities. The MISO states are being heavily considered, especially in second ring suburbs and just outside regional hubs in greater midwest areas. Data centers are great additions for tax bases that are often shrinking and being stretched thin by rising costs of operation, but local and state policy battles around energy usage means data centers are prime for robust public affairs campaigns.
A New Future of Nuclear Energy?
With the arrival of data centers comes the talk of small modular nuclear and the resurgence of nuclear in general. With large entities like Google and Meta looking to get in the nuclear business to power their data center needs, the energy market has the potential to be shaped by private investment which could help with the acceptance and support of the newer advanced nuclear technologies.
In states like Minnesota with a nuclear moratorium, we’re seeing coalitions being organized under GENERATIONATOMIC that could catapult this issue to the forefront of the legislative discussions this biennium. While the lifting of the moratorium will be a heavy lift, the rise in willingness to engage on the issue should be capitalized on to help improve public opinion in Midwest states
American Energy Independence Will Be a Federal Priority
With the new administration, there will be a continued focus on enhancing energy independence. Past legislation, such as HR1—introduced by Congressman Scalise (R-LA1) will likely be revisited in some form. The goal will be to address key areas, including increased American energy production and exports, energy infrastructure development, critical mineral processing, permitting reform, and transparency and accountability measures for energy projects with the goal of decreasing our reliability on foreign nations for our energy needs. This also aligns with the bipartisan effort to reshore manufacturing and reduce reliance on global supply chains.
Measuring the Success of Projects like CenterPoint’s Renewable Natural Gas
In blue-leaning states like Minnesota, the success of pilot projects like CenterPoint’s Renewable Natural Gas program, the anaerobic digester in Scott County, MN, heat pumps will be watched to see if they are viable and replicable in other states.
– Kayla Christensen is K2’s Public Affairs Director.