HF 28

2nd Engrossment - 94th Legislature (2025 - 2026) Posted on 03/12/2025 12:34pm

A bill for an act
relating to energy; providing for data center energy generation redundancy;
amending Minnesota Statutes 2024, sections 116D.04, subdivision 4a; 216B.02,
by adding subdivisions; 216B.243, subdivision 8; 216I.02, by adding a subdivision;
216I.07, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read:

Subd. 4a.

Alternative review.

new text begin (a) new text end The board shall by rule identify alternative forms of
environmental review which will address the same issues and utilize similar procedures as
an environmental impact statement in a more timely or more efficient manner to be utilized
in lieu of an environmental impact statement.

new text begin (b) Upon adoption by the responsible governmental unit of the environmental document
and plan for mitigation under an alternative urban areawide review process, and
notwithstanding any additional environmental review that may otherwise be required for a
phased action, connected action, or project component that was not evaluated in the
alternative urban areawide review process, environmental review is complete and the
prerequisites under subdivision 2b are satisfied with regards to anticipated development
projects within the established boundaries of the geographic area to which the alternative
urban areawide review applies.
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. 2.

Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Emergency backup generator. new text end

new text begin "Emergency backup generator" means a
stationary compressed ignition or spark ignition engine described under Code of Federal
Regulations, title 40, parts 60.4211(f) and 60.4243(d), respectively, that is installed with
equipment that prevents the flow of electricity to the electric grid.
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. 3.

Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Data center. new text end

new text begin "Data center" means a freestanding structure that primarily
contains electronic equipment used to process, store, and transmit digital information.
new text end

Sec. 4.

Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a large wind energy conversion system, as defined in section 216I.02, subdivision
12, or a solar energy generating system, as defined in section 216I.02, subdivision 18, for
which a site permit application is submitted by an independent power producer under chapter
216I;

(8) a large wind energy conversion system, as defined in section 216I.02, subdivision
12, or a solar energy generating system, as defined in section 216I.02, subdivision 18,
engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase;

(9) energy storage systems, as defined in section 216I.02, subdivision 6;

(10) transmission lines that directly interconnect large wind energy conversion systems,
solar energy generating systems, or energy storage systems to the transmission system; deleted text begin or
deleted text end

(11) relocation of an existing high voltage transmission line to new right-of-way, provided
that any new structures that are installed are not designed for and capable of operation at
higher voltage deleted text begin . deleted text end new text begin ; or
new text end

new text begin (12) a combination of emergency backup generators at a single site with a combined
capacity of 50,000 kilowatts or more that provides power to a data center and is eligible for
permitting as a single stationary source under Minnesota Rules, part 7007.0250.
new text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to applications under Minnesota Statutes, section 216B.243,
that are pending before or submitted to the Public Utilities Commission on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2024, section 216I.02, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Emergency backup generator. new text end

new text begin "Emergency backup generator" has the
meaning given in section 216B.02, subdivision 11.
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 216I.07, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures under this section apply
to projects for which the applicant's proposal is:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

new text begin (2) a combination of emergency backup generators designed to serve one person and
located on property owned or controlled by the person;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end large electric power generating plants that are fueled by natural gas;

deleted text begin (3) deleted text end new text begin (4) new text end high-voltage transmission lines with a capacity between 100 and 300 kilovolts;

deleted text begin (4) deleted text end new text begin (5) new text end high-voltage transmission lines with a capacity in excess of 300 kilovolts and
less than 30 miles in length in Minnesota;

deleted text begin (5) deleted text end new text begin (6) new text end high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at
least 80 percent of the distance of the line in Minnesota, as proposed by the applicant, is
located along existing high-voltage transmission line right-of-way;

deleted text begin (6) deleted text end new text begin (7) new text end solar energy systems;

deleted text begin (7) deleted text end new text begin (8) new text end energy storage systems; and

deleted text begin (8) deleted text end new text begin (9) new text end large wind energy conversion systems.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2025, and
applies to applications under Minnesota Statutes, section 216I.07, that are pending before
or submitted to the Public Utilities Commission on or after that date.
new text end