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SF 4503

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 09:29 a.m.

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to local government; designating thermal energy networks as public
improvements and waterworks; amending Minnesota Statutes 2024, sections
429.021, subdivision 1; 444.075, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 429.021, subdivision 1, is amended to read:


Subdivision 1.

Improvements authorized.

The council of a municipality shall have
power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage and
connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,
lift stations, service connections, and other appurtenances of a sewer system, within and
without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems and
special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
treatment plants, and other appurtenances of a water works system, within and without the
corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
systems in existing buildings, but only upon a petition pursuant to section 429.031,
subdivision 3
.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and other
communications purposes, provided that the municipality must:

(i) not discriminate in favor of the municipality's own communications facilities by
granting the municipality more favorable or less burdensome terms and conditions than a
nonmunicipal service provider with respect to: (A) access and use of public rights-of-way;
(B) access and use of municipally owned or controlled conduit, towers, and utility poles;
and (C) permitting fees charged to access municipally owned and managed facilities;

(ii) maintain separation between the municipality's role as a regulator over firms that
offer services in competition with the services offered by the municipality over the
municipality's communications service facilities, and the municipality's role as a competitive
provider of services over the municipality's communications service facilities; and

(iii) not share inside information between employees or contractors responsible for
executing the municipality's role as a regulator over firms that offer communications services
in competition with the communication services offered by the municipality, and employees
or contractors responsible for executing the municipality's role as a competitive
communications services provider.

(20) To assess affected property owners for all or a portion of the costs agreed to with
an electric utility, telecommunications carrier, or cable system operator to bury or alter a
new or existing distribution system within the public right-of-way that exceeds the utility's
design and construction standards, or those set by law, tariff, or franchise, but only upon
petition under section 429.031, subdivision 3.

(21) To assess affected property owners for repayment of voluntary energy improvement
financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.

(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy
improvement projects in existing buildings, provided that:

(i) a petition for the improvement is made by a property owner under section 429.031,
subdivision 3;

(ii) the municipality funds and administers the energy improvement project;

(iii) project funds are only used for the installation of improvements to heating,
ventilation, and air conditioning equipment and building envelope and for the installation
of renewable energy systems;

(iv) each property owner petitioning for the improvement receives notice that free or
low-cost energy improvements may be available under federal, state, or utility programs;

(v) for energy improvement projects on residential property, only residential property
having five or more units may obtain financing for projects under this clause; and

(vi) prior to financing an energy improvement project or imposing an assessment for a
project, written notice is provided to the mortgage lender of any mortgage encumbering or
otherwise secured by the property proposed to be improved.

new text begin (23) To construct, reconstruct, extend, and maintain thermal energy networks as defined
in section 216B.2427, subdivision 1, paragraph (s).
new text end

Sec. 2.

Minnesota Statutes 2024, section 444.075, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

new text begin (a) new text end The definitions in this subdivision apply deleted text begin indeleted text end new text begin tonew text end this section.

deleted text begin (a)deleted text end new text begin (b) new text end "Municipality" means a home rule charter or statutory city or a town.

deleted text begin (b)deleted text end new text begin (c) new text end "Governing body" means the town board with respect to towns.

deleted text begin (c)deleted text end new text begin (d) new text end "Waterworks" means waterworks systems, including mains, valves, hydrants,
service connections, wells, pumps, reservoirs, tanks, treatment plants, new text begin thermal energy
networks as defined in section 216B.2427, subdivision 1, paragraph (s),
new text end and other
appurtenances of a waterworks system.

deleted text begin (d)deleted text end new text begin (e) new text end "Sanitary sewer" means sanitary sewer systems, including sewage treatment
works, disposal systems, and other facilities for disposing of sewage, industrial waste, or
other wastes.

deleted text begin (e)deleted text end new text begin (f) new text end "Storm sewer" means storm sewer systems, including mains, holding areas and
ponds, and other appurtenances and related facilities for the collection and disposal of
stormwater.

deleted text begin (f)deleted text end new text begin (g) new text end "Facilities" means and includes waterworks, sanitary sewer and storm sewer
systems, or any portion or portions thereof.