SF 4504

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/16/2026 09:27 a.m.

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