Despite razor-thin margins, the Minnesota state legislature and Governor eventually found their way to a last-minute global agreement on May 13. It included a mixture of partisan and bipartisan priorities including $250M in license tab fees relief, anti-fraud measures, $125M in property tax cuts, $205M to save safety-net hospital HCMC (additional $500M to a hospital stabilization fund, likely recipient HCMC), and a $1.2B capital improvements package.
Following the global agreement, lawmakers worked around-the-clock to complete their work, adjourning just short of midnight on May 17, minutes before the constitutional deadline.
While many ambitious proposals related to energy affordability, grid modernization, clean energy, and utility reform were discussed throughout the session, with one notable exception, no significant energy agreements ultimately crossed the finish line.
The notable exception was the inclusion of a nuclear energy study in the final tax bill, HF 2438. This study aligns with CEE’s data-driven mission to further explore this carbon-free energy resource, while remaining steadfast in our alignment with the Prairie Island Indian Community, less than a half of a mile from the plant, which has valid concerns about nuclear waste and community siting engagement and also supported the study.
The nuclear study represents nearly 10 years of debate, conversations, and stakeholder engagement. We hope it will provide Minnesota policymakers and stakeholders information to better understand the potential community impacts, costs, site considerations, and long-term implications of nuclear energy as the state continues planning for a reliable, affordable, and carbon-free energy future.
At the same time, the session highlighted the challenges of advancing comprehensive energy policy in a divided political environment. Many proposals aimed at strengthening energy efficiency, expanding equitable clean energy access, improving affordability, and addressing emerging energy demands did not advance before adjournment.
While little policy advanced, there were opportunities for us to collaborate with clean energy partners, like Fresh Energy, to defend against rollbacks to the upcoming and more efficient Residential Energy Code. Additionally, we worked with our utility partners to successfully push back against an attempt to eliminate the energy savings goals in ECO, Minnesota’s nation-leading energy efficiency program. With utilities and committee member champions, we highlighted efficiency as the lowest-cost energy resource that reduces energy waste, promotes innovation, and saves ratepayers money. CEE also supported the organization 100% on their efforts to enable Thermal Energy Network Systems (TENS) to give gas utilities an avenue to decarbonize our heating system.
As Minnesota’s energy landscape continues to evolve, driven by growing electricity demand, grid reliability concerns, and climate commitments, the need for thoughtful, evidence-based policymaking remains critical. Center for Energy and Environment looks forward to continuing to work over the interim with our clean energy allies, lawmakers, utilities, businesses, and local communities to advance meaningful energy solutions for all Minnesotans.