Energy

With threats being lobbed by the Trump administration to eliminate funding for clean energy projects and prioritize dirty, unaffordable energy sources, Senate DFLers this year fought to make targeted investments in ready-to-go projects within our local communities. Our energy priorities included emergency assistance to help Minnesotans heat their homes and over $40 million in clean energy projects in the state.

PASSED 

 Nuclear energy feasibility study  

Originally carried in the Energy’s Renewable Development Spending, this year’s Tax bill included funding to complete a study on the potential impact of new nuclear generation in Minnesota, including on the affordability and reliability of nuclear energy and any impacts to the environment and human health. This study will help provide lawmakers and regulators with a comprehensive understanding of what, if any, role new nuclear generation could have in decarbonizing the state’s energy sector. (HF 2438)  

 Melissa Hortman Community Solar Garden program  

Following the horrific events of June 2025, House and Senate DFLers this year passed legislation to rename the state’s community solar garden program in honor of late Speaker Emerita Melissa Hortman, who was a leader in establishing the state’s nation-leading program in 2013. (HF 3556)  

Regulatory streamlining for transmission projects  

One of the bills passed earlier in this year’s session provides a narrowly tailored exemption to speed up the regulatory process for replacing existing transmission lines with similar lines that provide a higher transmission capacity. Utilities are trying to keep up with growing energy demand, particularly in rural Minnesota and particularly with the increased demand to bring renewable technologies online. With this change, utilities will see quicker regulatory timelines for these critical projects without jeopardizing any of the critical environmental and community protections we have in place currently. (HF 3802)

Did NOT pass: 

Emergency energy assistance  

In the face of federal threats to assistance programs and skyrocketing energy and living costs, Senate DFLers fought to provide immediate, one-time assistance to help low-income Minnesotans heat their homes and make emergency furnace repairs. Included in the Senate’s supplemental finance bill, DFLers committed $15 million to establish a state-level energy assistance program. Unfortunately, House Republicans refused to prioritize this need during end-of-session negotiations. (SF 4059)  

Renewable Development Account investments  

For the second year in a row, Senate DFLers passed funding for projects out of the Renewable Development Account, and for the second year in a row, the House was unable to come to an agreement to fund any of these projects. This year’s Senate proposal included a bipartisan mix of projects within local communities, as reflected in the following spreadsheet.  (SF 4059)  

Budget item  

Recipient  

FY26 Appropriation  

Microgrid Center  

U of St. Thomas  

$800,000  

Green Hydrogen Project – St. Cloud   

St. Cloud  

$3.5 million  

Anaerobic Digester – Shakopee  

Ramsey/Washington Recycling & Energy  

$5 million  

Como Zoo Geothermal Energy System  

Como Zoo  

$2.25 million  

Minnesota Energy Alley  

CEEM  

$2 million  

Ammonia, Hydrogen, and Renewable Energy certificate tracking  

CleanCounts  

$2 million  

Distributed ammonia production study  

Great Plains Institute  

$500,000  

Macalester College geothermal system  

Macalester  

$2.57 million  

Biomass energy facility – Becker  

Liberty Paper  

$715,000  

Hydrogen and ammonia production from renewable energy resources study and development  

U of M / NRRI  

$1.5 million  

MN geological hydrogen potential study  

NRRI  

$650,000  

Minnesota Green Iron Initiative  

NRRI  

$750,000  

Emerald Ash Borer disposal via waste-to-heat process  

Shakopee  

$3 million  

Green ammonia production  

TalusAg  

$4 million  

Nuclear study*  

*Passed in 2026 Omnibus Tax Bill  

Great Plains Institute  

$300,000  

Geothermal planning grants  

Commerce  

$2 million  

Preweatherization Grants  

Commerce  

$4.465 million  

The Heights geothermal system  

The Heights  

$3 million  

TOTAL RDA SPENDING  

$40 million  


Plug-in “balcony” solar  

Included in the Senate Omnibus Energy Policy bill, this change would have provided new statutory guidance to allow consumers to use plug-in solar panels for onsite energy generation that does not require interconnection onto the grid, making it a viable renewable energy option for renters and Minnesotans seeking a more cost-effective solar option. Approximately 29 other states have passed or are considering similar changes, but the provision failed to pass in Minnesota this year. (SF 3873 / SF 4504)  

Authorizing utility thermal energy networks  

Following a stakeholder process that took place during the summer of 2025, the Legislature took a look at statutory changes needed to facilitate utility-scale deployment of thermal energy networks in the state. This year’s Omnibus Energy provisions included initial statutory changes to authorize public utilities to develop these networks and to prioritize projects in interested and underserved communities. (SF 4281 / SF 4059)