SF 486
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/26/2026 09:11 a.m.
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A bill for an act
relating to energy; establishing a supplemental energy assistance grant program;
requiring an annual report; appropriating money; proposing coding for new law
in Minnesota Statutes, chapter 216C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[216C.392] SUPPLEMENTAL ENERGY ASSISTANCE GRANT
PROGRAM.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "LIHEAP" has the meaning given in section 142G.02, subdivision 59.
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(c) "Crisis grant" means a grant to a low-income household to prevent shut-off of
residential energy services, to reinstate residential energy services, or to enable delivery of
residential fuels.
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(d) "Primary energy grant" means a grant to help a low-income household maintain and
continue affordable energy service.
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new text begin Subd. 2. new text end
new text begin Establishment. new text end
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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.
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new text begin Subd. 3. new text end
new text begin Applications; procedures. new text end
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(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.
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(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.
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(c) The commissioner must accept grant applications and award grants under this section
throughout the year.
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new text begin Subd. 4. new text end
new text begin Eligibility. new text end
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(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.
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(b) An organization with experience conducting outreach for programs designed for
low-income households is eligible for grants awarded under subdivision 6, clause (4).
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new text begin Subd. 5. new text end
new text begin Grant awards. new text end
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(a) When awarding grants under this section, the commissioner
must 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.
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(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.
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new text begin Subd. 6. new text end
new text begin Types of grants. new text end
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The commissioner may award grants under this section for:
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(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;
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(2) primary energy and crisis grants to eligible households that did not receive LIHEAP
primary energy and crisis grants from federal funds;
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(3) emergency heating system repair or replacement; and
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(4) outreach activities.
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new text begin Subd. 7. new text end
new text begin Reporting. new text end
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(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.
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(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:
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(1) the number of households awarded a grant;
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(2) the number of households served that did not receive a LIHEAP primary energy
grant;
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(3) the average primary energy grant award;
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(4) the average crisis grant award; and
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(5) average annual costs of heating and electricity for households served.
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(c) The following information on grants awarded under this section may be reported as
statewide totals:
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(1) the average household income of grant recipients;
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(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;
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(3) the number of households that include a person over 60 years old;
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(4) the number of households that include a disabled person;
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(5) the number of households that include a child under six years old; and
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(6) the number of households served by race or ethnicity.
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(d) A report under this section must comply with the provisions of chapter 13, including
provisions establishing data on individuals as not public in order to ensure the individual
privacy of applicants.
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Sec. 2. new text begin APPROPRIATION.
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(a) $40,000,000 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.
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(b) Of the amount appropriated in paragraph (a):
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(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
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(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.
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