Omnibus Energy, Utilities, Environment, and Climate policy and supplemental appropriations

A bill for an act

relating to energy; establishing and modifying provisions related to petroleum,

thermal energy network service, solar, and other energy policy; establishing the

supplemental energy assistance grant program; establishing a supplemental budget

for energy and renewable energy purposes; requiring reports; amending Minnesota

Statutes 2024, sections 115C.08, subdivision 4; 115C.09, by adding a subdivision;

216C.02, subdivision 1; 216C.05, subdivision 1; 216C.377, subdivisions 10, 13;

216C.391, subdivisions 6, 7; 216C.441, subdivisions 3, 4, by adding a subdivision;

216C.46, subdivision 3; Minnesota Statutes 2025 Supplement, section 216B.16,

subdivision 15; proposing coding for new law in Minnesota Statutes, chapters

216B; 216C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ENERGY FINANCE AND POLICY

Section 1.

Minnesota Statutes 2024, section 115C.08, subdivision 4, is amended to read:

Subd. 4.

Expenditures.

(a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections
116.46
to
116.50
, sections
115C.03

to
115C.06
, and costs of corrective action taken by the agency under section
115C.03
,

including investigations;

(3) for costs of recovering expenses of corrective actions under section
115C.04
;

(4) for training, certification, and rulemaking under sections
116.46
to
116.50
;

(5) for agency administrative costs of enforcing rules governing the construction,

installation, operation, and closure of aboveground and underground petroleum storage

tanks;

(6) for reimbursement of the environmental response, compensation, and compliance

account under subdivision 5 and section
115B.26, subdivision 4
;

(7) for administrative and staff costs as set by the board to administer the petroleum tank

release program established in this chapter;

(8) for corrective action performance audits under section
115C.093
;

(9) for contamination cleanup grants, as provided in paragraph (c);

(10) to assess and remove abandoned underground storage tanks under section
115C.094

and, if a release is discovered, to pay for the specific consultant and contractor services

costs necessary to complete the tank removal project, including, but not limited to, excavation

soil sampling, groundwater sampling, soil disposal, and completion of an excavation report;
deleted text begin

and
deleted text end

(11) to acquire interests in real or personal property, including easements, environmental

covenants under chapter 114E, and leases, that the agency determines are necessary for

corrective actions or to ensure the protectiveness of corrective actions. A donation of an

interest in real property to the agency is not effective until the agency executes a certificate

of acceptance. The state is not liable under this chapter solely as a result of acquiring an

interest in real property under this clause. Agency approval of an environmental covenant

under chapter 114E is sufficient evidence of acceptance of an interest in real property when

the agency is expressly identified as a holder in the covenant. Acquisition of real property

under this clause, except environmental covenants under chapter 114E, is subject to approval

by the board
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(12) to partially reimburse the cost of replacing pressurized single-walled steel piping

related equipment in underground petroleum storage tank systems under section 115C.09,

subdivision 3l.

new text end

(b) Except as provided in paragraph (c), money in the fund is appropriated to the board

to make reimbursements or payments under this section.

(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund to

the commissioner of employment and economic development for contamination cleanup

grants under section
116J.554
. Beginning in fiscal year 2012 and each year thereafter,

$6,200,000 is annually appropriated from the fund to the commissioner of employment and

economic development for contamination cleanup grants under section
116J.554
. Of this

amount, the commissioner may spend up to $225,000 annually for administration of the

contamination cleanup grant program. The appropriation does not cancel and is available

until expended. The appropriation shall not be withdrawn from the fund nor the fund balance

reduced until the funds are requested by the commissioner of employment and economic

development. The commissioner shall schedule requests for withdrawals from the fund to

minimize the necessity to impose the fee authorized by subdivision 2. Unless otherwise

provided, the appropriation in this paragraph may be used for:

(1) project costs at a qualifying site if a portion of the cleanup costs are attributable to

petroleum contamination or new and used tar and tar-like substances, including but not

limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist

primarily of hydrocarbons and are found in natural deposits in the earth or are distillates,

fractions, or residues from the processing of petroleum crude or petroleum products as

defined in section
296A.01
; and

(2) the costs of performing contamination investigation if there is a reasonable basis to

suspect the contamination is attributable to petroleum or new and used tar and tar-like

substances, including but not limited to bitumen and asphalt, but excluding bituminous or

asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits

in the earth or are distillates, fractions, or residues from the processing of petroleum crude

or petroleum products as defined in section
296A.01
.

Sec. 2.

Minnesota Statutes 2024, section 115C.09, is amended by adding a subdivision to

read:

new text begin

Subd. 3l.

new text end

new text begin

Reimbursement; single-walled steel piping.

new text end

new text begin

(a) For the purposes of this

subdivision, the following terms have the meanings given:

new text end

new text begin

(1) "eligible equipment" means all equipment between the underground petroleum storage

tank and the dispenser, including piping, probes, monitors, pumps, containment, and electrical

equipment to support the equipment. Eligible equipment does not include underground

petroleum storage tanks, dispensers, canopies, site improvements, or signage replacement;

new text end

new text begin

(2) "eligible location" means an underground petroleum storage tank system that is

located in Minnesota, has pressurized single-walled steel piping, and was installed before

the effective date of this subdivision; and

new text end

new text begin

(3) "qualified person" means someone who is registered as a contractor under sections

115C.11 to 115C.12 and, as part of the person's trade or business, installs or repairs

pressurized underground petroleum storage tank systems.

new text end

new text begin

(b) Notwithstanding any other provision of this chapter or any rules adopted under this

chapter, for replacement projects beginning after January 1, 2027, the board must reimburse

an owner 50 percent of the cost of replacing existing eligible equipment at eligible locations

with eligible equipment that meets all current applicable federal and Minnesota regulations

and standards, provided that:

new text end

new text begin

(1) the owner considered at least two bids and selected the bid with the lowest total cost;

and

new text end

new text begin

(2) the board determines that the costs incurred were reasonable.

new text end

new text begin

(c) The board must not reimburse costs that the board determines were unreasonable.

new text end

new text begin

(d) Reimbursement under paragraph (b) must not exceed $100,000 per eligible location.

new text end

new text begin

(e) The maximum annual expenditure from the fund established under section 115C.08

for purposes of this subdivision must not exceed $4,000,000.

new text end

new text begin

(f) An owner that owns or operates multiple eligible locations must not receive

reimbursement for more than two eligible locations per calendar year.

new text end

new text begin

(g) An owner may be reimbursed for the costs of:

new text end

new text begin

(1) all eligible equipment;

new text end

new text begin

(2) labor completed by a qualified person and associated with eligible equipment

installation;

new text end

new text begin

(3) labor completed by a qualified person and associated with dirt and concrete work

directly associated with installing eligible equipment; and

new text end

new text begin

(4) permits, freight, and shipping directly related to eligible equipment.

new text end

new text begin

(h) Nothing in this subdivision prohibits an owner from receiving reimbursement from

other sources for costs that are not reimbursed under this subdivision.

new text end

new text begin

(i) This subdivision expires June 30, 2037.

new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 216B.16, subdivision 15, is amended

to read:

Subd. 15.

Low-income affordability programs.

(a) The commission must consider

ability to pay as a factor in setting utility rates and may establish affordability programs for

low-income residential ratepayers in order to ensure affordable, reliable, and continuous

service to low-income utility customers. A public utility serving low-income residential

ratepayers who use natural gas
new text begin
or service from a thermal energy network, as defined in

section 216B.2427, subdivision 1,
new text end
for heating must file an affordability program with the

commission.

(b) Any affordability program the commission orders a utility to implement must:

(1) lower the percentage of income that participating low-income households devote to

energy bills;

(2) increase participating customer payments over time by increasing the frequency of

payments;

(3) decrease or eliminate participating customer arrears;

(4) lower the utility costs associated with customer account collection activities; and

(5) coordinate the program with other available low-income bill payment assistance and

conservation resources.

(c) In ordering affordability programs, the commission may require public utilities to

file program evaluations that measure the effect of the affordability program on:

(1) the percentage of income that participating households devote to energy bills;

(2) service disconnections; and

(3) frequency of customer payments, utility collection costs, arrearages, and bad debt.

(d) The commission must issue orders necessary to implement, administer, and evaluate

affordability programs, and to allow a utility to recover program costs, including

administrative costs, on a timely basis. The commission may not allow a utility to recover

administrative costs, excluding start-up costs, in excess of five percent of total program

costs, or program evaluation costs in excess of two percent of total program costs. The

commission must permit deferred accounting, with carrying costs, for recovery of program

costs incurred during the period between general rate cases.

(e) Public utilities may use information collected or created for the purpose of

administering energy assistance to administer affordability programs.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 4.

new text begin

[216B.2413] PLUG-IN SOLAR PHOTOVOLTAIC DEVICE.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

(a) "Electric utility" means a public utility, cooperative

electric association, or municipal utility that provides electric service at retail to customers

in Minnesota.

new text end

new text begin

(b) "Energy storage system" has the meaning given in section 216B.2422, subdivision

1.

new text end

new text begin

(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.

new text end

new text begin

(d) "Plug-in solar photovoltaic device" means a portable photovoltaic device that:

new text end

new text begin

(1) is intended primarily to offset a portion of a customer's electricity consumption;

new text end

new text begin

(2) has a maximum power output of 1,200 watts;

new text end

new text begin

(3) is capable of being connected with an on-site energy storage system; and

new text end

new text begin

(4) is listed or certified to UL 3700 as compliant with the requirements for interactive

plug-in photovoltaic equipment and systems.

new text end

new text begin

(e) "UL 3700" means a standard that is compliant with the National Electric Code and

was developed by Underwriters Laboratories, a testing laboratory that is recognized under

the federal Occupational Safety and Health Agency's Nationally Recognized Testing

Laboratory program to certify photovoltaic equipment and systems.

new text end

new text begin

Subd. 2.

new text end

new text begin

Exemptions.

new text end

new text begin

(a) A plug-in solar photovoltaic device is exempt from:

new text end

new text begin

(1) a requirement to enter into an interconnection agreement with an electric utility;

new text end

new text begin

(2) the net metering provisions under section 216B.164; and

new text end

new text begin

(3) an electric utility's establishment of any fee, condition, required approval, or reporting

requirement, except as specified in subdivision 3, on its installation or operation.

new text end

new text begin

(b) An electric utility is not liable for damage or injury caused by a plug-in solar

photovoltaic device.

new text end

new text begin

Subd. 3.

new text end

new text begin

Registration.

new text end

new text begin

An electric utility may require a customer to register a plug-in

solar photovoltaic device installed by the customer and provide the following information:

new text end

new text begin

(1) the customer's name and contact information;

new text end

new text begin

(2) the customer's service address and utility account number;

new text end

new text begin

(3) the brand and model of the plug-in solar photovoltaic device; and

new text end

new text begin

(4) the size of the plug-in solar photovoltaic device in kilowatts.

new text end

new text begin

Subd. 4.

new text end

new text begin

Installation.

new text end

new text begin

A customer must install a plug-in solar photovoltaic device

according to the manufacturer's installation instructions.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 5.

new text begin

[216B.2429] THERMAL ENERGY NETWORKS.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

For the purposes of this section, "thermal energy network"

or "TEN" has the meaning given in section 216B.2427, subdivision 1.

new text end

new text begin

Subd. 2.

new text end

new text begin

Thermal energy network service.

new text end

new text begin

A public utility may offer service by a

thermal energy network.

new text end

new text begin

Subd. 3.

new text end

new text begin

Cost recovery.

new text end

new text begin

A public utility must, subject to commission review and

approval, recover reasonable and prudently incurred costs of implementing an approved

TEN in a general rate case or, before December 31, 2036, in a thermal energy network

service rider.

new text end

new text begin

Subd. 4.

new text end

new text begin

TEN consumer protection.

new text end

new text begin

A utility's provision of service by a TEN is subject

to the same laws, protections, and commission authority to which a utility's provision of

natural gas service is subject under this chapter.

new text end

new text begin

Subd. 5.

new text end

new text begin

TEN siting; priorities.

new text end

new text begin

In assessing locations at which to site a TEN, a utility

must give preference to an area:

new text end

new text begin

(1) whose residents have expressed a desire to have a TEN installed;

new text end

new text begin

(2) whose characteristics resemble those of an area in which a successful TEN was

completed under a natural gas innovation plan filed under section 216B.2427; or

new text end

new text begin

(3) that includes or is within an environmental justice area, as defined in section 116.065,

subdivision 1, paragraph (e).

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 6.

Minnesota Statutes 2024, section 216C.02, subdivision 1, is amended to read:

Subdivision 1.

Powers.

(a) The commissioner may:

(1) apply for, receive, and spend money received from federal, municipal, county,

regional, and other government agencies and private sources;

(2) apply for, accept, and disburse grants and other aids from public and private sources;

(3) contract for professional services if work or services required or authorized to be

carried out by the commissioner cannot be satisfactorily performed by employees of the

department or by another state agency;

(4) enter into interstate
new text begin
or intrastate partnerships or
new text end
compacts to carry out research and

planning jointly with other states or the federal government
new text begin
, private entities, or

nongovernmental organizations
new text end
when appropriate;

(5) upon reasonable request, distribute informational material at no cost to the public;

and

(6) enter into contracts for the performance of the commissioner's duties with federal,

state, regional, metropolitan, local, and other agencies or units of government and educational

institutions, including the University of Minnesota, without regard to the competitive bidding

requirements of chapters 16A and 16C.

(b) The commissioner shall collect information on conservation and other energy-related

programs carried on by other agencies, by public utilities, by cooperative electric associations,

by municipal power agencies, by other fuel suppliers, by political subdivisions, and by

private organizations. Other agencies, cooperative electric associations, municipal power

agencies, and political subdivisions shall cooperate with the commissioner by providing

information requested by the commissioner. The commissioner may by rule require the

submission of information by other program operators. The commissioner shall make the

information available to other agencies and to the public and, as necessary, shall recommend

to the legislature changes in the laws governing conservation and other energy-related

programs to ensure that:

(1) expenditures on the programs are adequate to meet identified needs;

(2) the needs of low-income energy users are being adequately addressed;

(3) duplication of effort is avoided or eliminated;

(4) a program that is ineffective is improved or eliminated; and

(5) voluntary efforts are encouraged through incentives for their operators.

(c) By January 15 of each year, the commissioner shall report to the legislature on the

projected amount of federal money likely to be available to the state during the next fiscal

year, including grant money and money received by the state as a result of litigation or

settlements of alleged violations of federal petroleum-pricing regulations. The report must

also estimate the amount of money projected as needed during the next fiscal year to finance

a level of conservation and other energy-related programs adequate to meet projected needs,

particularly the needs of low-income persons and households, and must recommend the

amount of state appropriations needed to cover the difference between the projected

availability of federal money and the projected needs.

Sec. 7.

Minnesota Statutes 2024, section 216C.05, subdivision 1, is amended to read:

Subdivision 1.

Energy planning.

The legislature finds and declares that continued

growth in demand for energy will cause severe social and economic dislocations, and that

the state has a vital interest in providing for: increased efficiency in energy consumption,

the development and use of renewable energy resources wherever possible,
new text begin
a secure and

resilient energy system infrastructure,
new text end
and the creation of an effective energy forecasting,

planning, and education program.

The legislature further finds and declares that the protection of life, safety, and financial

security for citizens during an energy crisis is of paramount importance.

Therefore, the legislature finds that it is in the public interest to review, analyze, and

encourage those energy programs that will minimize the need for annual increases in fossil

fuel consumption
deleted text begin
by 1990
deleted text end
and the need for additional
deleted text begin
electrical generating plants
deleted text end
new text begin
electric

generation, distribution, and storage
new text end
, and provide for an optimum combination of energy

sources and energy conservation consistent with environmental protection and the protection

of citizens.

new text begin

The legislature further finds that maintaining an energy security plan that addresses (1)

all sources of regulated and unregulated energy, (2) a statewide risk assessment, (3) an

all-hazards threat assessment, (4) analysis of cross-sector critical infrastructure

interdependencies, (5) risk mitigation strategies, and (6) multistate and regional coordination

is in the public interest. The responsibilities pursuant to the energy security plan must be

executed under a planning, preparedness, and response framework, and in consultation with

state agencies, local units of government, energy providers, community-based organizations,

and others as appropriate.

new text end

The legislature intends to monitor, through energy policy planning and implementation,

the transition from historic growth in energy demand to a period when demand for traditional

fuels becomes stable and the supply of renewable energy resources is readily available and

adequately utilized.

The legislature further finds that for economic growth, environmental improvement,

and protection of citizens, it is in the public interest to encourage
deleted text begin
those
deleted text end
energy programs
new text begin

and planning processes
new text end
that
deleted text begin
will
deleted text end
provide an optimum combination of energy resources,

including energy savings.

Therefore, the legislature, through its committees, must monitor and evaluate progress

toward greater reliance on cost-effective energy efficiency and renewable energy and lesser

dependence on fossil fuels in order to reduce the economic burden of fuel imports, diversify

utility-owned and consumer-owned energy resources, reduce utility costs for businesses

and residents, improve the competitiveness and profitability of Minnesota businesses,
new text begin

increase energy security,
new text end
create more energy-related jobs that contribute to the Minnesota

economy, and reduce pollution and emissions that cause climate change.

Sec. 8.

Minnesota Statutes 2024, section 216C.377, subdivision 10, is amended to read:

Subd. 10.

Application deadline.

An application must not be submitted under this section

after June 30,
deleted text begin
2026
deleted text end
new text begin
2028
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective June 1, 2026.

new text end

Sec. 9.

Minnesota Statutes 2024, section 216C.377, subdivision 13, is amended to read:

Subd. 13.

Reporting.

Beginning January 15, 2025, and each year thereafter until January

15,
deleted text begin
2027
deleted text end
new text begin
2029
new text end
, the commissioner must report to the chairs and ranking minority members

of the legislative committees with jurisdiction over energy finance and policy regarding

grants and amounts awarded to local units of government under this section during the

previous year and any remaining balances available in the account established under this

section.

Sec. 10.

Minnesota Statutes 2024, section 216C.391, subdivision 6, is amended to read:

Subd. 6.

Grant awards; administration.

(a) An eligible entity seeking a grant award

under subdivision 3 or an entity seeking a grant award under subdivision 4 must submit an

application to the commissioner on a form prescribed by the commissioner. The

commissioner is responsible for receiving and reviewing grant applications and awarding

grants under this section, and shall develop administrative procedures governing the

application, evaluation, and award process. The commissioner may not make a grant award

under this section unless the commissioner has determined, and has notified the applicant

in writing, that the application is complete. In awarding grants under this section, the

commissioner shall endeavor to make awards to applicants from all regions of the state.

(b) The department must provide technical assistance to applicants. Applicants may also

receive grant development assistance at no cost from entities awarded grants for that purpose

under subdivision 4.

(c) Within ten business days of determining a grant award amount to an applicant, the

commissioner must:

(1) reserve that amount for that specific grant in the state competitiveness fund account;

and

(2) notify the Legislative Advisory Commission in writing of the reserved amount, the

name of the applicant, the purpose of the project, and the unreserved balance of funds

remaining in the account.

(d) Reserved funds are committed to the grant and use specified in the notice provided

under paragraph (c) and are unavailable for reservation or appropriation for other applications

unless and until the commissioner receives written notice from the applicant that the

application for federal funds has been withdrawn or from the federal grantor that the

application for which funds from the account were reserved has been denied federal funds.

(e) Reserved funds may only be expended upon presentation of written notice from the

federal grantor to the commissioner stating that the applicant will receive federal funds for

the project described in the application. If the amount of federal funds awarded to an applicant

differs from the amount requested in the application, the commissioner may adjust the award

made under this section accordingly.
new text begin
Notwithstanding sections 16B.98, subdivisions 5 and

7, and 16C.05, a reimbursement may cover cost-sharing expenses incurred after the start of

the federal award agreement but before the date the contract with the state of Minnesota is

effective, to ensure the applicant's compliance with federal award schedule requirements.
new text end

(f) Reserved funds must be made for projects that demonstrate they will help meet the

state's clean energy and energy-related climate goals through renewable energy development,

energy conservation, efficiency, or energy-related greenhouse gas reduction benefits.

(g) The commissioner must notify the chairs and ranking minority members of the

legislative committees with jurisdiction over energy finance when the unreserved balance

of the competitiveness fund account reaches the following amounts: 50 percent, unreserved;

25 percent, unreserved; 15 percent, unreserved; and five percent. The notification must be

within ten days after each level of unreserved balance is reached.

Sec. 11.

Minnesota Statutes 2024, section 216C.391, subdivision 7, is amended to read:

Subd. 7.

Report; audit.

deleted text begin
Beginning February 15, 2024, and each
deleted text end
new text begin
By
new text end
February 15
deleted text begin
thereafter
deleted text end
new text begin

each year
new text end
until February 15, 2035, the commissioner must submit a written report to the

chairs and ranking minority members of the legislative committees with jurisdiction over

energy finance on the activities taken and expenditures made under this section. The report

must, at a minimum, include the following information for the most recent calendar year:

(1) the number of applications for grants filed with the commissioner and the total amount

of grant funds requested;

(2) each grant awarded;

(3) the number of additional personnel hired for the purposes of this section;

(4) expenditures on activities conducted under this section, reported separately for these

areas:

(i) the provision of technical assistance;

(ii) grants made under subdivision 4 to entities to assist applicants with grant

development;

(iii) application review and evaluation, including applicants that were denied federal or

state grant awards and the reason for the denial;

(iv) information technology activities; and

(v) other expenditures;

(5) the unreserved balance remaining in the state competitiveness fund account;

(6) a copy of a financial audit of the department's expenditures under this section
new text begin
for the

previous fiscal year
new text end
new text begin
,
new text end
conducted by an independent auditor;

(7) recommendations for legislation to enhance the ability of eligible entities to

successfully compete for federal funds;

(8) additional available funding opportunities to obtain energy-related funding from

federal agencies; and

(9) federal grant program changes that would affect the federal funds available to the

state and eligible applicants, including changes that would affect the required match for

receiving federal funds.

Sec. 12.

new text begin

[216C.392] SUPPLEMENTAL ENERGY ASSISTANCE GRANT

PROGRAM.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Definitions.

new text end

new text begin

(a) For the purposes of this section, the following terms have

the meanings given.

new text end

new text begin

(b) "LIHEAP" has the meaning given in section 142G.02, subdivision 59.

new text end

new text begin

(c) "Crisis grant" means a grant to a low-income household to prevent shut-off of

residential energy services, reinstate residential energy services, or enable delivery of

residential fuels.

new text end

new text begin

(d) "Primary energy grant" means a grant to help a low-income household maintain and

continue affordable energy service.

new text end

new text begin

Subd. 2.

new text end

new text begin

Establishment.

new text end

new text begin

A supplemental energy assistance grant program is established

in the department to award grants to eligible applicants. The purpose of the program is to

assist low-income households experiencing energy burden to pay the costs of heating,

cooling, and other home energy costs throughout the year.

new text end

new text begin

Subd. 3.

new text end

new text begin

Applications; procedures.

new text end

new text begin

(a) The commissioner must develop policies and

procedures governing the grant application and award process, and must leverage existing

LIHEAP application processes and infrastructure to the maximum degree practicable.

new text end

new text begin

(b) An eligible applicant must file an application with the commissioner on a form

developed by the commissioner. The form must be available to eligible applicants in both

a paper and electronic format.

new text end

new text begin

Subd. 4.

new text end

new text begin

Eligibility.

new text end

new text begin

(a) A Minnesota resident whose household income is below the

income eligibility threshold identified in the Minnesota LIHEAP Detailed Model Plan

submitted to the United States Department of Health and Human Services for the applicable

program year is eligible to receive a grant award under this section. If the LIHEAP Detailed

Model Plan is not available, the commissioner may develop a similar income eligibility

threshold.

new text end

new text begin

(b) An organization with experience conducting outreach for programs designed for

low-income households is eligible for grants awarded under subdivision 6, clause (4).

new text end

new text begin

Subd. 5.

new text end

new text begin

Grant awards.

new text end

new text begin

(a) When awarding grants under this section, the commissioner

may give priority to expanding the number of households receiving energy assistance over

increasing grant amounts to households that already received assistance under LIHEAP

during the same year.

new text end

new text begin

(b) To the extent practicable, available LIHEAP funds must be awarded to all eligible

applicants for primary energy and crisis grants before energy and crisis grants are awarded

under this section.

new text end

new text begin

Subd. 6.

new text end

new text begin

Types of grants.

new text end

new text begin

The commissioner may award grants under this section for:

new text end

new text begin

(1) crisis grants to households that received a LIHEAP primary energy grant from federal

funds but did not receive the maximum crisis grant amount while federal funds allocated

for crisis grants were available;

new text end

new text begin

(2) primary energy and crisis grants to eligible households that did not receive LIHEAP

primary energy and crisis grants from federal funds;

new text end

new text begin

(3) emergency heating system repair or replacement; and

new text end

new text begin

(4) outreach activities.

new text end

new text begin

Subd. 7.

new text end

new text begin

Reporting.

new text end

new text begin

(a) Beginning January 31, 2028, and annually thereafter until January

31, 2030, the commissioner must submit a report to the chairs and ranking minority members

of the senate and house of representatives committees with primary jurisdiction over energy

policy and finance that documents state supplemental energy assistance grant awards made

under this section during the previous program year from October 1 to September 30.

new text end

new text begin

(b) To the extent practicable, the following information on grants awarded under this

section must be reported by statewide total, by county, and by census tract within cities with

populations over 30,000:

new text end

new text begin

(1) the number of households awarded a grant;

new text end

new text begin

(2) the number of households served that did not receive a LIHEAP primary energy

grant;

new text end

new text begin

(3) the average primary energy grant award;

new text end

new text begin

(4) the average crisis grant award; and

new text end

new text begin

(5) average annual costs of heating and electricity for households served.

new text end

new text begin

(c) The following information on grants awarded under this section may be reported as

statewide totals:

new text end

new text begin

(1) the average household income of grant recipients;

new text end

new text begin

(2) a distribution of grant awards by grant recipients' household income, expressed as a

percentage of the federal poverty level established by the United States Department of

Health and Human Services;

new text end

new text begin

(3) the number of households that include a person over 60 years old;

new text end

new text begin

(4) the number of households that include a disabled person;

new text end

new text begin

(5) the number of households that include a child under six years old; and

new text end

new text begin

(6) the number of households served by race or ethnicity.

new text end

new text begin

(d) A report under this section must comply with chapter 13, including provisions

establishing data on individuals as not public in order to ensure the individual privacy of

applicants.

new text end

Sec. 13.

Minnesota Statutes 2024, section 216C.441, subdivision 3, is amended to read:

Subd. 3.

General powers.

(a) For the purpose of exercising the specific powers granted

in this section, the authority has the general powers granted in this subdivision.

(b) The authority may:

(1) hire an executive director and staff to conduct the authority's operations;

(2) sue and be sued;

(3) have a seal and alter the seal;

(4) acquire, hold, lease, manage, and dispose of real or personal property for the

authority's corporate purposes;

(5) enter into agreements, including cooperative financing agreements, contracts, or

other transactions, with a Tribal government, any federal or state agency, county, local unit

of government, regional development commission, person, domestic or foreign partnership,

corporation, association, or organization;

(6) acquire by purchase real property, or an interest therein, in the authority's own name

where acquisition is necessary or appropriate;

(7) provide general technical and consultative services related to the authority's purpose;

(8) promote research and development in matters related to the authority's purpose;

(9) conduct market analysis to determine where the market is underserved;

(10) analyze greenhouse gas emissions reduction project financing needs in the state

and recommend measures to alleviate any shortage of financing capacity;

(11) contract with any governmental or private agency or organization, legal counsel,

financial advisor, investment banker, or others to assist in the exercise of the authority's

powers;

new text begin

(12) borrow money or other property for any purpose pertaining to the authority's

activities;

new text end

deleted text begin

(12)
deleted text end
new text begin
(13)
new text end
enter into agreements with qualified lenders or others insuring or guaranteeing

to the state the payment of qualified loans or other financing instruments;
deleted text begin
and
deleted text end

new text begin

(14) sell at a public or private sale a note, mortgage, or other interest or obligation that

evidences or secures a loan; and

new text end

deleted text begin

(13)
deleted text end
new text begin
(15)
new text end
accept on behalf of the state any gift, grant, or interest in money or personal

property tendered to the state for any purpose pertaining to the authority's activities.
new text begin
Money

received under this clause must be deposited in the account under subdivision 11.
new text end

Sec. 14.

Minnesota Statutes 2024, section 216C.441, subdivision 4, is amended to read:

Subd. 4.

Authority duties.

(a) The authority must:

(1) serve as a financial resource to reduce the upfront and total costs of implementing

qualified projects;

(2) ensure that all financed projects reduce greenhouse gas emissions;

(3) ensure that financing terms and conditions offered are well-suited to qualified projects;

(4) strategically prioritize the use of the authority's funds to leverage private investment

in qualified projects, with the aim of achieving a high ratio of private to public money

invested through funding mechanisms that support, enhance, and complement private lending

and investment;

(5) coordinate with existing federal, state, local, utility, and other programs to ensure

that the authority's resources are being used most effectively to add to and complement

those programs;

(6) stimulate demand for qualified projects by:

(i) contracting with the department to provide, including through subcontracts with

community navigators, information to project participants about federal, state, local, utility,

and other authority financial assistance for qualifying projects, and technical information

on energy conservation and renewable energy measures;

(ii) forming partnerships with contractors and informing contractors about the authority's

financing programs;

(iii) developing innovative marketing strategies to stimulate project owner interest,

especially in underserved communities; and

(iv) incentivizing financing entities to increase activity in underserved markets;

(7) finance projects in all regions of the state;

(8) develop participant eligibility standards and other terms and conditions for financial

support provided by the authority;

(9) develop and administer:

(i) policies to collect reasonable fees for authority services; and

(ii) risk management activities to support ongoing authority activities;

(10) develop consumer protection standards governing the authority's investments to

ensure that financial support is provided responsibly and transparently and is in the financial

interest of participating project owners;

(11) develop methods to accurately measure the impact of the authority's activities,

particularly on low-income communities and on greenhouse gas emissions reductions;

(12) hire an executive director and sufficient staff with the appropriate skills and

qualifications to carry out the authority's programs, making an affirmative effort to recruit

and hire a director and staff who are from, or share the interests of, the communities the

authority must serve;

(13) apply for, either as a direct or subgrantee applicant, and accept Greenhouse Gas

Reduction Fund grants authorized by the federal Clean Air Act, United States Code, title

42, section 7434, paragraph (a), clauses (1), (2), and (3). Until the Climate Innovation

Finance Authority is established, the commissioner shall apply for and receive funding

through Public Law 117-169 in order to leverage state investment, on behalf of the authority.

To the extent practicable, applications for these funds by or on behalf of the authority should

be made in coordination with other Minnesota applicants;

(14) acting under its powers as a state energy financing institution under United States

Code, title 42, section 16511, collaborate with the United States Department of Energy Loan

Programs Office to ensure that authorities made available under the Inflation Reduction

Act of 2022, Public Law 117-169, maximally benefit Minnesotans. Until the Climate

Innovation Finance Authority is established, the commissioner may engage with the United

States Department of Energy Loan Programs Office on behalf of the authority; and

(15) ensure that authority contracts with all third-party administrators, contractors, and

subcontractors contain required covenants, representations, and warranties specifying that

contracted third parties are agents of the authority and that all acts of contracted third parties

are considered acts of the authority, provided that the act is within the contracted scope of

work.

(b) The authority may:

(1) employ credit enhancement mechanisms that reduce financial risk for financing

entities by providing assurance that a limited portion of a loan or other financial instrument

is assumed by the authority via a loan loss reserve, loan guarantee, or other mechanism;

(2) co-invest in a qualified project by providing senior or subordinated debt, equity, or

other mechanisms in conjunction with other investment, co-lending, or financing;

(3) aggregate small and geographically dispersed qualified projects in order to diversify

risk
new text begin
;
new text end

deleted text begin
or
deleted text end

new text begin

(4)
new text end
secure additional private investment through securitization or similar resale of the

authority's interest in a completed qualified project;

deleted text begin

(4)
deleted text end
new text begin
(5)
new text end
expend up to 25 percent of funds appropriated to the authority for start-up

purposes, which may be used for financing programs and project investments authorized

under this section, prior to adoption of the strategic plan required under subdivision 7 and

the investment strategy under subdivision 8; and

deleted text begin

(5)
deleted text end
new text begin
(6)
new text end
require a specific project to agree to implement a project labor agreement as a

condition of receiving financing from the authority.

Sec. 15.

Minnesota Statutes 2024, section 216C.441, is amended by adding a subdivision

to read:

new text begin

Subd. 4a.

new text end

new text begin

Liability; limitation.

new text end

new text begin

(a) The state is not liable on notes, loans, or other interests

or obligations evidencing or securing a loan entered into by the authority under this section.

A note, loan, or other interest or obligation securing a loan under this section is not a debt

of the state.

new text end

new text begin

(b) A note, loan, or other agreement or contract evidencing security for a loan entered

into under this section must contain a statement that clearly indicates the liability limitation

under paragraph (a).

new text end

Sec. 16.

Minnesota Statutes 2024, section 216C.46, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) An application for a rebate under this section must be made

to the commissioner on a form developed by the commissioner. The application must be

accompanied by documentation, as required by the commissioner, demonstrating that:

(1) the applicant is an eligible applicant;

(2) the applicant owns the Minnesota residence in which the heat pump is to be installed
new text begin

or has the signed approval from the owner of the Minnesota residence in which the heat

pump is to be installed
new text end
;

(3) the applicant
deleted text begin
has had an energy audit conducted of the residence in which the heat

pump is to be installed within the last 18 months by a person with a Building Analyst

Technician certification issued by the Building Performance Institute, Inc., or an equivalent

certification, as determined by the commissioner
deleted text end
new text begin
, heat pump, and installation meet the

federal Department of Energy's documentation and eligibility requirements to receive a heat

pump rebate under the federal Inflation Reduction Act of 2022, Public Law 117-169
new text end
;

(4)
deleted text begin
either:
deleted text end
new text begin
the applicant has accepted the potential impacts of replacing a natural gas

primary heating system with a heat pump in the applicant's home;
new text end

deleted text begin

(i) the applicant has installed in the applicant's residence, by a contractor with an Air

Leakage Control Installer certification issued by the Building Performance Institute, Inc.,

or an equivalent certification, as determined by the commissioner, the amount of insulation

and the air sealing measures recommended by the auditor; or

deleted text end

deleted text begin

(ii) the auditor has otherwise determined that the amount of insulation and air sealing

measures in the residence are sufficient to enable effective heat pump performance;

deleted text end

(5) the applicant has purchased a heat pump of the capacity recommended by the auditor

or contractor, and has had the heat pump installed by a contractor
deleted text begin
with sufficient training

and experience in installing heat pumps, as determined by the commissioner
deleted text end
new text begin
approved to

install heat pumps under comparable federal programs administered by the department

under the federal Inflation Reduction Act of 2022, Public Law 117-169
new text end
; and

(6) the total cost to purchase and install the heat pump in the applicant's residence.

(b) The commissioner must develop administrative procedures governing the application

and rebate award processes.

(c) The commissioner may modify program requirements under this section when

necessary to align with comparable federal programs administered by the department under

the federal Inflation Reduction Act of 2022, Public Law
deleted text begin
117-189
deleted text end
new text begin
117-169
new text end
.

Sec. 17.
new text begin
APPROPRIATION; PUBLIC UTILITIES COMMISSION.
new text end

new text begin

$40,000 in fiscal year 2027 is appropriated from the general fund to the Public Utilities

Commission for thermal energy network services provided under Minnesota Statutes, section

216B.2429.

new text end

Sec. 18.
new text begin
APPROPRIATION; DEPARTMENT OF COMMERCE.
new text end

new text begin

(a) $15,000,000 in fiscal year 2027 is appropriated from the general fund to the

commissioner of commerce for the supplemental energy assistance grant program under

Minnesota Statutes, section 216C.392. This is a onetime appropriation and is available until

December 31, 2029.

new text end

new text begin

(b) Of the amount appropriated in paragraph (a):

new text end

new text begin

(1) up to 12.5 percent may be used for staffing and other costs associated with

administering the supplemental energy assistance grant program under Minnesota Statutes,

section 216C.392, including program planning and preparation, reviewing applications and

verifying information, and entering data into a central electronic system maintained by the

Department of Commerce. Of this funding, up to 2.5 percent may be used by the Department

of Commerce. The remaining amount allocated under this clause may be used to reimburse

reasonable administrative costs incurred under Minnesota Statutes, section 216C.392, by

service providers contracted by the Department of Commerce to deliver LIHEAP services;

and

new text end

new text begin

(2) up to five percent may be used to reimburse the reasonable costs incurred under

Minnesota Statutes, section 216C.392, by organizations the department has contracted with

to provide outreach and assistance to households to complete grant applications under

Minnesota Statutes, section 216C.392. Priority for grants awarded under this clause must

be given to organizations that have the ability to conduct outreach to underserved

communities and populations, including current service providers and other organizations.

new text end

ARTICLE 2

RENEWABLE DEVELOPMENT FINANCE

Section 1.
new text begin
RENEWABLE DEVELOPMENT FINANCE.
new text end

new text begin

The sums shown in the columns marked "Appropriations" are appropriated to the agencies

and for the purposes specified in this article. Notwithstanding Minnesota Statutes, section

116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable

development account in the special revenue fund established in Minnesota Statutes, section

116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.

The figures "2026" and "2027" used in this article mean that the appropriations listed under

them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.

"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"

is fiscal years 2026 and 2027. The appropriations in this article are onetime.

new text end

new text begin

APPROPRIATIONS

new text end

new text begin

Available for the Year

new text end

new text begin

Ending June 30

new text end

new text begin

2026

new text end

new text begin

2027

new text end

Sec. 2.
new text begin
DEPARTMENT OF COMMERCE
new text end

new text begin

Subdivision 1.

new text end

new text begin

Total Appropriation

new text end

new text begin

$

new text end

new text begin

-0-

new text end

new text begin

$

new text end

new text begin

22,335,000

new text end

new text begin

The amounts that may be spent for each

purpose are specified in the following

subdivisions.

new text end

new text begin

Subd. 2.

new text end

new text begin

Microgrid Research and Application

new text end

new text begin

$800,000 the second year is for a grant to the

University of St. Thomas Center for Microgrid

Research, which must be used to:

new text end

new text begin

(1) increase the center's capacity to provide

industry partners with opportunities to test

near-commercial microgrid products on a

real-world scale and to multiply opportunities

for innovative research;

new text end

new text begin

(2) procure advanced equipment and controls

to enable the extension of the university's

microgrid to additional buildings; and

new text end

new text begin

(3) expand (i) hands-on educational

opportunities for undergraduate and graduate

electrical engineering students to increase

understanding of microgrid operations, and

(ii) partnerships with community colleges.

This appropriation is available until June 30,

2029.

new text end

new text begin

Subd. 3.

new text end

new text begin

Green Hydrogen Project

new text end

new text begin

$3,500,000 the second year is for a grant to

the city of St. Cloud for the Green Hydrogen

Project to incorporate a battery and renewable

energy system. This appropriation is available

until June 30, 2029.

new text end

new text begin

Subd. 4.

new text end

new text begin

Anaerobic Digester Energy System

new text end

new text begin

$5,000,000 the second year is for a grant to

Ramsey/Washington Recycling and Energy,

in partnership with Dem-Con HZI Bioenergy,

LLC, to construct an anaerobic digester energy

system in Louisville Township. For the

purposes of this subdivision, "anaerobic

digester energy system" means a facility that

uses diverted food and organic waste to create

renewable natural gas and biochar. This

appropriation is available until June 30, 2029.

new text end

new text begin

Subd. 5.

new text end

new text begin

Como Zoo Geothermal Energy System

new text end

new text begin

$2,250,000 the second year is for a grant to

Como Zoo in the city of St. Paul to construct

a geothermal energy system that provides

space heating and cooling to the large cats

building. For the purposes of this subdivision,

"geothermal energy system" means a system

composed of a heat pump that moves a

heat-transferring fluid through piping

embedded in the earth and absorbs the earth's

constant temperature, a heat exchanger, and

ductwork to distribute heated and cooled air

to a building. This appropriation is available

until June 30, 2029.

new text end

new text begin

Subd. 6.

new text end

new text begin

Minnesota Energy Alley

new text end

new text begin

(a) $2,000,000 the first year is for a grant to

Clean Energy Economy Minnesota for the

Minnesota Energy Alley initiative. The

initiative is designed to promote energy

innovation through supporting energy

entrepreneurs and emerging businesses to

commercialize energy solutions by matching

promising innovators with established and

trustworthy Minnesota-based public and

private partners to demonstrate emerging

technologies in real-world applications. The

grant may be used to provide seed funding for

businesses, develop a training and

development program, support recruitment of

entrepreneurs to Minnesota, and secure

funding from federal programs and corporate

partners to establish a self-sustaining,

long-term revenue model. This appropriation

is available until June 30, 2028.

new text end

new text begin

(b) By January 15, 2028, the commissioner of

commerce must submit a written report to the

chairs and ranking minority members of the

house of representatives and senate

committees with jurisdiction over energy

finance and policy on the activities and

accomplishments of the Minnesota Energy

Alley initiative during the previous fiscal year

and the disposition of this appropriation,

including a separate statement of the amount

of administrative costs.

new text end

new text begin

Subd. 7.

new text end

new text begin

Ammonia, Hydrogen, and Renewable

Energy Certificate Tracking

new text end

new text begin

(a) $2,000,000 the second year is for a grant

to CleanCounts for technology that enables

tradable ammonia, hydrogen, and renewable

energy certificates.

new text end

new text begin

(b) Beginning January 1, 2027, and through

January 1, 2031, an entity that receives a grant

under this subdivision must submit a report to

the legislative auditor that details how the

grant money received has been spent.

new text end

new text begin

(c) Beginning January 1, 2031, and through

January 1, 2036, an entity that receives a grant

under this subdivision must report to the

commissioners of commerce and agriculture

regarding the number of ammonia certificates

issued in Minnesota as a result of the grant

money received.

new text end

new text begin

(d) This appropriation is available until June

30, 2029.

new text end

new text begin

Subd. 8.

new text end

new text begin

Great Plains Institute

new text end

new text begin

$500,000 the second year is for a grant to the

Great Plains Institute for work related to

identifying existing and future areas of the

state that are suitable for additional distributed

ammonia production and that have nearby

wind or other curtailed power. This

appropriation is available until June 30, 2029.

new text end

new text begin

Subd. 9.

new text end

new text begin

Macalester College Geothermal Energy

System

new text end

new text begin

(a) $2,570,000 the second year is for a grant

to Macalester College in St. Paul to construct

an aquifer-based geothermal energy system

that provides space heating and cooling to a

new campus residence hall and welcome

center, with the capacity for future expansion

to serve as a district heating and cooling plant

for all campus buildings north of Grand

Avenue. This appropriation is available until

June 30, 2029.

new text end

new text begin

(b) For purposes of this section, "aquifer-based

geothermal energy system" means a system

composed of wells that access underground

aquifers, heat pumps that transfer thermal

energy between buildings and the aquifer, heat

exchangers, and associated distribution

infrastructure.

new text end

new text begin

Subd. 10.

new text end

new text begin

Biomass Energy Facility

new text end

new text begin

(a) $715,000 the second year is for a grant to

Liberty Paper, Inc. to study and plan for an

anaerobic digester or a biomass thermal

generation facility in the city of Becker. This

is a onetime appropriation and is available

until June 30, 2029.

new text end

new text begin

(b) For purposes of this section, the following

terms have the meanings given: (1) "anaerobic

digester" means a facility that uses diverted

food and organic waste to generate renewable

natural gas and biochar; (2) "biochar" means

a solid substance, made from burning organic

material, that sequesters carbon and is capable

of being used as a soil application; and (3)

"biomass thermal generation facility" means

a facility that generates energy for commercial

heat or industrial process heat from the

combustion of organic material.

new text end

new text begin

Subd. 11.

new text end

new text begin

Geothermal Energy System; The

Heights Community Energy

new text end

new text begin

(a) $3,000,000 in the second year is for a grant

to The Heights Community Energy to

construct a geothermal energy system.

new text end

new text begin

(b) For purposes of this section, "geothermal

energy system" means a system composed of

one or more heat pumps connected to piping

embedded in the earth that exchanges thermal

energy with the earth and associated

distribution and building mechanical

infrastructure to provide heating and cooling

to one or more buildings.

new text end

new text begin

Subd. 12.

new text end

new text begin

Grant Administration

new text end

new text begin

Notwithstanding Minnesota Statutes, section

16B.98, subdivision 14, the commissioner may

use up to $250,000 of the amount in this

section for the administrative costs of the

grants in this section.

new text end

Sec. 3.
new text begin
UNIVERSITY OF MINNESOTA
new text end

new text begin

$

new text end

new text begin

-0-

new text end

new text begin

$

new text end

new text begin

2,900,000

new text end

new text begin

(a) $1,500,000 the second year is for research,

development, outreach, and demonstration of

energy systems that use hydrogen and

ammonia production from renewable energy

resources and other sources of clean energy

as a means of storing and generating

electricity. This appropriation is available until

June 30, 2029.

new text end

new text begin

(b) $650,000 the second year is for the Natural

Resources Research Institute to evaluate the

state's geological hydrogen potential. The

evaluation must include: (1) the availability

of the mined hydrogen resource; (2) the

feasibility of extracting the hydrogen from

underground deposits; (3) the potential

groundwater management challenges; and (4)

cost-effective strategies for storing and

transporting mined hydrogen. The Natural

Resources Research Institute must submit the

evaluation and an interim report to the chairs

and ranking minority members of the

legislative committees with jurisdiction over

energy policy and finance by May 15, 2028,

and a final report by May 15, 2029.

new text end

new text begin

(c) $750,000 the second year is for the Natural

Resources Research Institute to evaluate new

feedstock resources for a globally competitive,

next generation iron ore industry. The study

must include but is not limited to

quantification and characterization of

resources related to iron ore, energy, water,

hydrogen, biomass, carbon materials, process

technologies, transportation, and

manufacturing infrastructure that support

cross-coupling of iron production with

industries such as liquid fuels and ammonia.

The Natural Resources Research Institute must

submit the results of the study and an interim

report to the chairs and ranking minority

members of the legislative committees with

jurisdiction over energy policy and finance by

May 15, 2028, and a final report by May 15,

2029.

new text end

Sec. 4.
new text begin
POLLUTION CONTROL AGENCY
new text end

new text begin

$

new text end

new text begin

-0-

new text end

new text begin

$

new text end

new text begin

3,000,000

new text end

new text begin

$3,000,000 the second year is for a grant to

the owner of a biomass energy generation

plant in Shakopee that uses waste heat from

the generation of electricity in the malting

process to purchase equipment to facilitate the

disposal of wood that is infested by emerald

ash borer. This appropriation is available until

June 30, 2029. Notwithstanding Minnesota

Statutes, section 16B.98, subdivision 14, the

commissioner of the Pollution Control Agency

may use up to $25,000 of the amount in this

section for the administrative costs of this

grant.

new text end

Sec. 5.
new text begin
DEPARTMENT OF AGRICULTURE
new text end

new text begin

$

new text end

new text begin

-0-

new text end

new text begin

$

new text end

new text begin

4,000,000

new text end

new text begin

$4,000,000 the second year is for a grant to

TalusAg for the production and operation of

at least two green fertilizer production systems

located in Minnesota. This appropriation is

available until June 30, 2029. Notwithstanding

Minnesota Statutes, section 16B.98,

subdivision 14, the commissioner of

agriculture may use up to $25,000 of the

amount in this section for the administrative

costs of this grant.

new text end

Sec. 6.
new text begin
PUBLIC UTILITIES COMMISSION
new text end

new text begin

$

new text end

new text begin

-0-

new text end

new text begin

$

new text end

new text begin

300,000

new text end

new text begin

(a) $300,000 the second year is to contract

with a third party to conduct a study to inform

policymakers regarding the potential impact

of new nuclear generation on the public

interest of Minnesota, including affordability,

reliability, environmental protection, public

health, and equitable outcomes.

new text end

new text begin

(b) The commission must issue a competitive

request for proposals and contract with an

independent, qualified entity or consortium

with demonstrated expertise in relevant subject

matter, and with no material financial interest

in the expansion of nuclear generation. The

commission must ensure balanced

representation of perspectives in the study.

The selected entity must disclose any potential

conflicts of interest to the commission. If the

commission determines that issuing a

competitive request for proposals would

unreasonably delay completion of the study

within the required timeline, the commission

may contract on a sole-source basis, provided

that the selected entity meets the qualifications

and independence requirements under this

paragraph.

new text end

new text begin

(c) The study must be completed no later than

January 30, 2027, and must include, at a

minimum, discussion of:

new text end

new text begin

(1) changes in federal regulations governing

the licensing of nuclear-powered facilities that

may speed the review and approval process;

new text end

new text begin

(2) technological advances made with respect

to conventional nuclear-powered facilities that

affect safety and cost;

new text end

new text begin

(3) full lifecycle costs, including capital costs,

financing costs, construction risk, cost

overruns, decommissioning costs, waste

management, and long-term liability exposure

compared to alternative resource options. The

analysis must include historical evidence from

comparable projects in the United States and

internationally;

new text end

new text begin

(4) ratepayer impacts where new nuclear

generation has been developed, including

effects on electricity rates, cost and schedule

overruns, and the allocation of financial risk

between ratepayers and developers;

new text end

new text begin

(5) public finance protections such as public

subsidies, tax expenditures, and financial

incentives required, and the opportunity cost

of those public investments;

new text end

new text begin

(6) the prospects for small modular reactors

and factory-built portable modules with a

capacity up to 300 megawatts, including:

new text end

new text begin

(i) the types of technologies available;

new text end

new text begin

(ii) current licensing status; and

new text end

new text begin

(iii) estimated costs;

new text end

new text begin

(7) siting issues, including:

new text end

new text begin

(i) the degree to which the requirement for

proximity to water resources sufficient for

cooling purposes restricts possible locations

of nuclear facilities, and what locations

meeting that requirement are available in this

state;

new text end

new text begin

(ii) the potential for colocating nuclear

facilities with businesses that demand very

large amounts of electricity;

new text end

new text begin

(iii) the environmental impacts of nuclear

facilities, including impacts on the health of

nearby residents;

new text end

new text begin

(iv) the prospects for acceptance of nuclear

facilities by host communities, and best

practices for engaging communities on this

issue; and

new text end

new text begin

(v) how interconnection and transmission

issues affect potential plant locations;

new text end

new text begin

(8) nuclear waste issues, including:

new text end

new text begin

(i) the amount and toxicity of radioactive

waste produced by both conventional nuclear

technologies and small modular reactors;

new text end

new text begin

(ii) the costs of on-site storage;

new text end

new text begin

(iii) the prospects for developing permanent

storage of radioactive waste at either a

federally-owned or privately-owned repository

to which Minnesota's waste could be

transported; and

new text end

new text begin

(iv) the feasibility and cost of reprocessing

nuclear waste;

new text end

new text begin

(9) the economic impacts of various nuclear

technologies on a host community, including:

new text end

new text begin

(i) increased employment levels during

construction and operations;

new text end

new text begin

(ii) increased local economic activity resulting

from purchases made by the nuclear-powered

facility and the facility's employees; and

new text end

new text begin

(iii) potential tax revenue to local

communities, local schools, and the state;

new text end

new text begin

(10) impacts of new nuclear-powered electric

generating plants on public safety officials and

emergency responders in host communities

and adjacent areas with respect to emergency

planning efforts;

new text end

new text begin

(11) system integration, including impacts on

grid flexibility, compatibility with high levels

of renewable energy, ramping capability, and

implications for achieving Minnesota's

greenhouse gas reduction goals;

new text end

new text begin

(12) how new nuclear generation could

accelerate or delay achievement of, and assist

or hinder ongoing compliance with,

Minnesota's statutory greenhouse gas

reduction and carbon-free electricity goals,

including comparison of deployment

timelines;

new text end

new text begin

(13) expected timelines from permitting

through operation, including historical

averages and delays for similar projects;

new text end

new text begin

(14) current Minnesota statutes and

administrative rules that would require

modification in order to enable the

construction and operation of advanced

nuclear reactors;

new text end

new text begin

(15) the feasibility of replacing retiring

generation assets in host communities with

advanced nuclear reactors; and

new text end

new text begin

(16) the workforce required and available, and

the training capacity necessary to construct

and operate new nuclear reactors.

new text end

new text begin

(d) The study must be conducted transparently,

with all data, assumptions, and models

publicly available.

new text end

new text begin

(e) No later than February 1, 2027, the

commission must submit the study to the

chairs and ranking minority members of the

senate and house of representatives

committees responsible for energy policy and

finance.

new text end

Sec. 7.
new text begin
TRANSFERS.
new text end

new text begin

(a) $2,000,000 in fiscal year 2027 is transferred from the renewable development account

in the special revenue fund to the geothermal planning grant account under Minnesota

Statutes, section 216C.47, subdivision 3. This is a onetime transfer.

new text end

new text begin

(b) $4,465,000 in fiscal year 2027 is transferred from the renewable development account

in the special revenue fund to the preweatherization account under Minnesota Statutes,

section 216C.264, subdivision 1c. This is a onetime transfer.

new text end

Sec. 8.
new text begin
RENEWABLE DEVELOPMENT ACCOUNT; ONETIME REDUCTION.
new text end

new text begin

(a) The amount transferred to the renewable development account under Minnesota

Statutes, section 116C.779, subdivision 1, paragraph (c), on January 15, 2027, is reduced

by $2,000,000.

new text end

new text begin

(b) The amount transferred to the renewable development account under Minnesota

Statutes, section 116C.779, subdivision 1, paragraph (d), on January 15, 2027, is reduced

by $2,000,000.

new text end

new text begin

(c) The public utility subject to Minnesota Statutes, section 116C.779, must reduce the

public utility's cost recovery under Minnesota Statutes, section 216B.1645, subdivision 2,

to reflect the reduced transfers in paragraphs (a) and (b) in calendar year 2027.

new text end