| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to energy; requiring preapplication filings for large water appropriation |
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| 3 | 3 | | 1.3 projects; adding information to permit applications for large water appropriation |
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| 4 | 4 | | 1.4 projects; specifying the level of environmental review for data centers; removing |
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| 5 | 5 | | 1.5 data centers' energy consumption from the calculation of a utility's energy savings |
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| 6 | 6 | | 1.6 goal; exempting data centers from making financial contributions to an energy |
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| 7 | 7 | | 1.7 conservation and optimization plan; depositing fee revenues in an account to be |
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| 8 | 8 | | 1.8 used for energy conservation; modifying the definition of large energy facility; |
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| 9 | 9 | | 1.9 establishing energy requirements for data centers; imposing a fee on data centers; |
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| 10 | 10 | | 1.10 requiring the Public Utilities Commission to establish a new tariff for data centers; |
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| 11 | 11 | | 1.11 amending Minnesota Statutes 2024, sections 103G.265, by adding a subdivision; |
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| 12 | 12 | | 1.12 103G.271, by adding a subdivision; 116D.04, by adding a subdivision; 216B.2402, |
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| 13 | 13 | | 1.13 subdivision 10; 216B.241, subdivisions 1a, 2a; 216B.2421, subdivision 2; proposing |
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| 14 | 14 | | 1.14 coding for new law in Minnesota Statutes, chapter 216B. |
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| 15 | 15 | | 1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 16 | 16 | | 1.16 Section 1. Minnesota Statutes 2024, section 103G.265, is amended by adding a subdivision |
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| 17 | 17 | | 1.17to read: |
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| 18 | 18 | | 1.18 Subd. 5.Preapplication evaluation of large water appropriation projects.(a) This |
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| 19 | 19 | | 1.19subdivision applies to a project whose proposed consumptive use exceeds 100 million |
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| 20 | 20 | | 1.20gallons per year or 250,000 gallons per day, whether under an existing permit, as the result |
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| 21 | 21 | | 1.21of a permit amendment, or under a new individual permit. |
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| 22 | 22 | | 1.22 (b) To ensure that a project is compatible with the needs of other current and future |
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| 23 | 23 | | 1.23water users, to help maintain the water allocation priorities established under section |
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| 24 | 24 | | 1.24103G.261, to ensure adequate water supply in areas of the state with limited water |
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| 25 | 25 | | 1.25availability, and to promote a more efficient and timely permitting process, potential |
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| 26 | 26 | | 1.26applicants or persons working on behalf of potential applicants are encouraged to discuss |
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| 27 | 27 | | 1.27the project with the department as early in the project development process as possible, |
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| 28 | 28 | | 1Section 1. |
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| 29 | 29 | | REVISOR RSI/AD 25-0519403/26/25 |
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| 30 | 30 | | State of Minnesota |
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| 31 | 31 | | This Document can be made available |
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| 32 | 32 | | in alternative formats upon request |
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| 33 | 33 | | HOUSE OF REPRESENTATIVES |
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| 34 | 34 | | H. F. No. 2928 |
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| 35 | 35 | | NINETY-FOURTH SESSION |
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| 36 | 36 | | Authored by Acomb03/27/2025 |
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| 37 | 37 | | The bill was read for the first time and referred to the Committee on Energy Finance and Policy 2.1preferably before a final project site has been selected, project design has been finalized, |
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| 38 | 38 | | 2.2or land has been acquired. |
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| 39 | 39 | | 2.3 (c) A city or county employee that has been contacted by a person regarding a project |
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| 40 | 40 | | 2.4that is likely to be subject to this subdivision must, even if no final decision has been made |
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| 41 | 41 | | 2.5on the project's location, notify the department in writing within ten business days of the |
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| 42 | 42 | | 2.6contact, providing the name of and contact information for the person, and potential project |
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| 43 | 43 | | 2.7locations. |
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| 44 | 44 | | 2.8 (d) In response to a contact from a potential applicant, the department may request |
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| 45 | 45 | | 2.9preapplication information that is helpful in assisting the department to assess the factors |
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| 46 | 46 | | 2.10affecting the ability of a water source to meet a project's water use needs at proposed |
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| 47 | 47 | | 2.11locations, including: |
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| 48 | 48 | | 2.12 (1) a project description, including all potential locations; |
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| 49 | 49 | | 2.13 (2) the project's estimated maximum daily, seasonal, and annual water use rates and |
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| 50 | 50 | | 2.14volumes; |
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| 51 | 51 | | 2.15 (3) the anticipated source of water; and |
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| 52 | 52 | | 2.16 (4) water quality or temperature requirements. |
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| 53 | 53 | | 2.17The department may request any additional information necessary to assist it to assess the |
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| 54 | 54 | | 2.18ability of a water source to meet a project's water use needs. |
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| 55 | 55 | | 2.19 (e) The commissioner shall evaluate the information supplied by a potential applicant |
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| 56 | 56 | | 2.20under this subdivision and shall respond in writing, which may be electronically transmitted, |
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| 57 | 57 | | 2.21describing potential water availability constraints at each proposed project site. |
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| 58 | 58 | | 2.22 (f) In determining the impact of a potential project on water quality and quantity, the |
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| 59 | 59 | | 2.23commissioner may consult with the commissioners of health, agriculture, the Pollution |
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| 60 | 60 | | 2.24Control Agency, and other state agencies. |
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| 61 | 61 | | 2.25 (g) Any communication made or information exchanged under this subdivision between |
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| 62 | 62 | | 2.26a potential applicant and a government agency, or between government agencies, is nonpublic |
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| 63 | 63 | | 2.27data, as defined in section 13.02, until the project is either abandoned or the applicant files |
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| 64 | 64 | | 2.28an application for a water use permit under section 103G.285 or 103G.287, after which the |
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| 65 | 65 | | 2.29data is public. |
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| 66 | 66 | | 2.30 (h) None of the discussions, filings, or evaluations made under this subdivision preclude |
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| 67 | 67 | | 2.31or supplant environmental review, preliminary well-construction approval, appropriation |
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| 68 | 68 | | 2.32permit review, or any other requirements under federal, state, or local law. |
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| 69 | 69 | | 2Section 1. |
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| 70 | 70 | | REVISOR RSI/AD 25-0519403/26/25 3.1 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 71 | 71 | | 3.2 Sec. 2. Minnesota Statutes 2024, section 103G.271, is amended by adding a subdivision |
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| 72 | 72 | | 3.3to read: |
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| 73 | 73 | | 3.4 Subd. 5b.Large water appropriation projects; permit conditions.In issuing water |
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| 74 | 74 | | 3.5use permits to applicants that meet the criteria of section 103G.265, subdivision 5, the |
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| 75 | 75 | | 3.6department shall ensure that: |
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| 76 | 76 | | 3.7 (1) water resources of the state are utilized in the public interest and that public health, |
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| 77 | 77 | | 3.8safety, and welfare are adequately protected; |
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| 78 | 78 | | 3.9 (2) technologies that promote water conservation and the efficient use of water are fully |
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| 79 | 79 | | 3.10considered; and |
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| 80 | 80 | | 3.11 (3) water use conflicts are addressed as prescribed in Minnesota Rules, part 6115.0740. |
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| 81 | 81 | | 3.12 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 82 | 82 | | 3.13 Sec. 3. Minnesota Statutes 2024, section 116D.04, is amended by adding a subdivision to |
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| 83 | 83 | | 3.14read: |
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| 84 | 84 | | 3.15 Subd. 18.Data centers; environmental review.(a) Notwithstanding any law to the |
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| 85 | 85 | | 3.16contrary, the proposed construction of a data center, as defined in section 216B.71, or the |
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| 86 | 86 | | 3.17expansion of the average hourly load of an existing data center by 100 megawatts or more, |
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| 87 | 87 | | 3.18requires preparation of an environmental impact statement according to the provisions of |
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| 88 | 88 | | 3.19subdivision 2a. The responsible governmental unit for the environmental impact statement |
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| 89 | 89 | | 3.20is the Public Utilities Commission. |
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| 90 | 90 | | 3.21 (b) For the purposes of this subdivision, "average hourly load" means the amount of |
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| 91 | 91 | | 3.22electricity consumed by a facility each hour, averaged over an entire year. |
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| 92 | 92 | | 3.23 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 93 | 93 | | 3.24 Sec. 4. Minnesota Statutes 2024, section 216B.2402, subdivision 10, is amended to read: |
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| 94 | 94 | | 3.25 Subd. 10.Gross annual retail energy sales."Gross annual retail energy sales" means |
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| 95 | 95 | | 3.26a utility's annual electric sales to all Minnesota retail customers, or natural gas throughput |
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| 96 | 96 | | 3.27to all retail customers, including natural gas transportation customers, on a utility's |
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| 97 | 97 | | 3.28distribution system in Minnesota. Gross annual retail energy sales does not include: |
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| 98 | 98 | | 3.29 (1) gas sales to: |
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| 99 | 99 | | 3.30 (i) a large energy facility; |
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| 100 | 100 | | 3Sec. 4. |
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| 101 | 101 | | REVISOR RSI/AD 25-0519403/26/25 4.1 (ii) a large customer facility whose natural gas utility has been exempted by the |
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| 102 | 102 | | 4.2commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural |
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| 103 | 103 | | 4.3gas sales made to the large customer facility; and |
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| 104 | 104 | | 4.4 (iii) a commercial gas customer facility whose natural gas utility has been exempted by |
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| 105 | 105 | | 4.5the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to |
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| 106 | 106 | | 4.6natural gas sales made to the commercial gas customer facility; |
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| 107 | 107 | | 4.7 (2) electric sales to: |
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| 108 | 108 | | 4.8 (i) a large customer facility whose electric utility has been exempted by the commissioner |
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| 109 | 109 | | 4.9under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made |
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| 110 | 110 | | 4.10to the large customer facility; and |
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| 111 | 111 | | 4.11 (ii) a data mining facility, if the facility: |
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| 112 | 112 | | 4.12 (A) has provided a signed letter to the utility verifying the facility meets the definition |
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| 113 | 113 | | 4.13of a data mining facility; and |
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| 114 | 114 | | 4.14 (B) imposes a peak electrical demand on a consumer-owned utility's system equal to or |
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| 115 | 115 | | 4.15greater than 40 percent of the peak electrical demand of the system, measured in the same |
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| 116 | 116 | | 4.16manner as the utility that serves the customer facility measures electric demand for billing |
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| 117 | 117 | | 4.17purposes; or and |
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| 118 | 118 | | 4.18 (iii) a data center, as defined in section 216B.71; or |
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| 119 | 119 | | 4.19 (3) the amount of electric sales prior to December 31, 2032, that are associated with a |
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| 120 | 120 | | 4.20utility's program, rate, or tariff for electric vehicle charging based on a methodology and |
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| 121 | 121 | | 4.21assumptions developed by the department in consultation with interested stakeholders no |
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| 122 | 122 | | 4.22later than December 31, 2021. After December 31, 2032, incremental sales to electric |
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| 123 | 123 | | 4.23vehicles must be included in calculating a public utility's gross annual retail sales. |
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| 124 | 124 | | 4.24 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 125 | 125 | | 4.25 Sec. 5. Minnesota Statutes 2024, section 216B.241, subdivision 1a, is amended to read: |
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| 126 | 126 | | 4.26 Subd. 1a.Large customer facility.(a) The owner of a large customer facility may |
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| 127 | 127 | | 4.27petition the commissioner to exempt both electric and gas utilities serving the large customer |
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| 128 | 128 | | 4.28facility from contributing to investments and expenditures made under an energy and |
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| 129 | 129 | | 4.29conservation optimization plan filed under subdivision 2 or section 216B.2403, subdivision |
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| 130 | 130 | | 4.303, with respect to retail revenues attributable to the large customer facility. The filing must |
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| 131 | 131 | | 4.31include a discussion of the competitive or economic pressures facing the owner of the facility |
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| 132 | 132 | | 4.32and the efforts taken by the owner to identify, evaluate, and implement energy conservation |
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| 133 | 133 | | 4Sec. 5. |
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| 134 | 134 | | REVISOR RSI/AD 25-0519403/26/25 5.1and efficiency improvements. A filing submitted on or before October 1 of any year must |
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| 135 | 135 | | 5.2be approved within 90 days and become effective January 1 of the year following the filing, |
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| 136 | 136 | | 5.3unless the commissioner finds that the owner of the large customer facility has failed to |
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| 137 | 137 | | 5.4take reasonable measures to identify, evaluate, and implement energy conservation and |
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| 138 | 138 | | 5.5efficiency improvements. If a facility qualifies as a large customer facility solely due to its |
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| 139 | 139 | | 5.6peak electrical demand or annual natural gas usage, the exemption may be limited to the |
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| 140 | 140 | | 5.7qualifying utility if the commissioner finds that the owner of the large customer facility has |
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| 141 | 141 | | 5.8failed to take reasonable measures to identify, evaluate, and implement energy conservation |
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| 142 | 142 | | 5.9and efficiency improvements with respect to the nonqualifying utility. Once an exemption |
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| 143 | 143 | | 5.10is approved, the commissioner may request the owner of a large customer facility to submit, |
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| 144 | 144 | | 5.11not more often than once every five years, a report demonstrating the large customer facility's |
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| 145 | 145 | | 5.12ongoing commitment to energy conservation and efficiency improvement after the exemption |
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| 146 | 146 | | 5.13filing. The commissioner may request such reports for up to ten years after the effective |
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| 147 | 147 | | 5.14date of the exemption, unless the majority ownership of the large customer facility changes, |
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| 148 | 148 | | 5.15in which case the commissioner may request additional reports for up to ten years after the |
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| 149 | 149 | | 5.16change in ownership occurs. The commissioner may, within 180 days of receiving a report |
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| 150 | 150 | | 5.17submitted under this paragraph, rescind any exemption granted under this paragraph upon |
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| 151 | 151 | | 5.18a determination that the large customer facility is not continuing to make reasonable efforts |
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| 152 | 152 | | 5.19to identify, evaluate, and implement energy conservation improvements. A large customer |
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| 153 | 153 | | 5.20facility that is, under an order from the commissioner, exempt from the investment and |
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| 154 | 154 | | 5.21expenditure requirements of paragraph (a) as of December 31, 2010, is not required to |
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| 155 | 155 | | 5.22submit a report to retain its exempt status, except as otherwise provided in this paragraph |
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| 156 | 156 | | 5.23with respect to ownership changes. No exempt large customer facility may participate in a |
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| 157 | 157 | | 5.24utility conservation improvement program unless the owner of the facility submits a filing |
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| 158 | 158 | | 5.25with the commissioner to withdraw its exemption. A data center that pays the required fee |
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| 159 | 159 | | 5.26under section 216B.72 is exempt from the requirement to contribute to investments and |
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| 160 | 160 | | 5.27expenditures made under an energy conservation optimization plan filed under subdivision |
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| 161 | 161 | | 5.282 or section 216B.2403, subdivision 3, and is not required to comply with the provisions |
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| 162 | 162 | | 5.29of this paragraph. |
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| 163 | 163 | | 5.30 (b) A commercial gas customer that is not a large customer facility and that purchases |
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| 164 | 164 | | 5.31or acquires natural gas from a public utility having fewer than 600,000 natural gas customers |
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| 165 | 165 | | 5.32in Minnesota may petition the commissioner to exempt gas utilities serving the commercial |
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| 166 | 166 | | 5.33gas customer from contributing to investments and expenditures made under an energy and |
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| 167 | 167 | | 5.34conservation optimization plan filed under subdivision 2 or section 216B.2403, subdivision |
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| 168 | 168 | | 5.353, with respect to retail revenues attributable to the commercial gas customer. The petition |
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| 169 | 169 | | 5.36must be supported by evidence demonstrating that the commercial gas customer has acquired |
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| 170 | 170 | | 5Sec. 5. |
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| 171 | 171 | | REVISOR RSI/AD 25-0519403/26/25 6.1or can reasonably acquire the capability to bypass use of the utility's gas distribution system |
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| 172 | 172 | | 6.2by obtaining natural gas directly from a supplier not regulated by the commission. The |
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| 173 | 173 | | 6.3commissioner shall grant the exemption if the commissioner finds that the petitioner has |
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| 174 | 174 | | 6.4made the demonstration required by this paragraph. |
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| 175 | 175 | | 6.5 (c) A public utility, consumer-owned utility, or owner of a large customer facility may |
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| 176 | 176 | | 6.6appeal a decision of the commissioner under paragraph (a) or (b) to the commission under |
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| 177 | 177 | | 6.7subdivision 2. In reviewing a decision of the commissioner under paragraph (a) or (b), the |
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| 178 | 178 | | 6.8commission shall rescind the decision if it finds the decision is not in the public interest. |
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| 179 | 179 | | 6.9 (d) Notwithstanding paragraph (a), a large customer facility or commercial gas customer |
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| 180 | 180 | | 6.10that is exempt from the investment and expenditure requirements of this section pursuant |
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| 181 | 181 | | 6.11to an order from the commissioner as of December 31, 2020, is not required to submit |
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| 182 | 182 | | 6.12additional documentation to maintain the exemption and must not be assessed any costs |
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| 183 | 183 | | 6.13related to any energy conservation and optimization plan filed under this section or section |
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| 184 | 184 | | 6.14216B.2403, including but not limited to costs, incentives, or rates of return associated with |
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| 185 | 185 | | 6.15investments in programs for efficient fuel-switching improvements. |
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| 186 | 186 | | 6.16 (e) A public utility is prohibited from spending for or investing in energy conservation |
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| 187 | 187 | | 6.17improvements that directly benefit a large energy facility or a large electric customer facility |
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| 188 | 188 | | 6.18the commissioner has issued an exemption to under this section. |
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| 189 | 189 | | 6.19 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 190 | 190 | | 6.20 Sec. 6. Minnesota Statutes 2024, section 216B.241, subdivision 2a, is amended to read: |
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| 191 | 191 | | 6.21 Subd. 2a.Energy and conservation account.(a) The energy and conservation account |
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| 192 | 192 | | 6.22is established in the special revenue fund in the state treasury. |
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| 193 | 193 | | 6.23 (b) The commissioner must deposit money assessed or contributed under subdivisions |
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| 194 | 194 | | 6.241d, 1e, 1f, and 7 in the state treasury and credit it to the energy and conservation account |
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| 195 | 195 | | 6.25in the special revenue fund. Money in the account assessed or contributed under subdivisions |
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| 196 | 196 | | 6.261d, 1e, and 1f is appropriated to the commissioner for the purposes of subdivisions 1d, 1e, |
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| 197 | 197 | | 6.271f, and 7. |
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| 198 | 198 | | 6.28 (c) The commissioner must deposit money transferred from the fee on data centers |
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| 199 | 199 | | 6.29established in section 216B.72 in the state treasury and credit it to the account. Money |
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| 200 | 200 | | 6.30transferred from the fee on data centers is appropriated to the commissioner to conduct |
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| 201 | 201 | | 6.31energy conservation, weatherization, and associated activities allowed under sections |
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| 202 | 202 | | 6.32216B.2403 and 216B.241, and the rules applicable to those sections. The commissioner |
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| 203 | 203 | | 6.33may spend money appropriated under this paragraph anywhere in the state, but only: |
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| 204 | 204 | | 6Sec. 6. |
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| 205 | 205 | | REVISOR RSI/AD 25-0519403/26/25 7.1 (1) on low-income programs; and |
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| 206 | 206 | | 7.2 (2) as the result of a request for proposals process administered by the department. |
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| 207 | 207 | | 7.3 (d) Interest on money in the account accrues to the account. |
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| 208 | 208 | | 7.4 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 209 | 209 | | 7.5 Sec. 7. Minnesota Statutes 2024, section 216B.2421, subdivision 2, is amended to read: |
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| 210 | 210 | | 7.6 Subd. 2.Large energy facility."Large energy facility" means: |
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| 211 | 211 | | 7.7 (1) any electric power generating plant or combination of plants at a single site with a |
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| 212 | 212 | | 7.8combined capacity of 50,000 kilowatts or more and transmission lines directly associated |
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| 213 | 213 | | 7.9with the plant that are necessary to interconnect the plant to the transmission system. Large |
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| 214 | 214 | | 7.10energy facility includes backup generators designed to provide electricity to a data center, |
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| 215 | 215 | | 7.11as defined in section 216B.71, with a combined capacity of 50,000 kilowatts or more; |
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| 216 | 216 | | 7.12 (2) any high-voltage transmission line with a capacity of 300 kilovolts or more and |
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| 217 | 217 | | 7.13greater than one mile in length in Minnesota; |
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| 218 | 218 | | 7.14 (3) any high-voltage transmission line with a capacity of 100 kilovolts or more with |
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| 219 | 219 | | 7.15more than ten miles of its length in Minnesota; |
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| 220 | 220 | | 7.16 (4) any pipeline greater than six inches in diameter and having more than 50 miles of |
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| 221 | 221 | | 7.17its length in Minnesota used for the transportation of coal, crude petroleum or petroleum |
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| 222 | 222 | | 7.18fuels or oil, or their derivatives; |
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| 223 | 223 | | 7.19 (5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200 |
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| 224 | 224 | | 7.20pounds per square inch with more than 50 miles of its length in Minnesota; |
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| 225 | 225 | | 7.21 (6) any facility designed for or capable of storing on a single site more than 100,000 |
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| 226 | 226 | | 7.22gallons of liquefied natural gas or synthetic gas; |
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| 227 | 227 | | 7.23 (7) any underground gas storage facility requiring a permit pursuant to section 103I.681; |
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| 228 | 228 | | 7.24 (8) any nuclear fuel processing or nuclear waste storage or disposal facility; and |
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| 229 | 229 | | 7.25 (9) any facility intended to convert any material into any other combustible fuel and |
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| 230 | 230 | | 7.26having the capacity to process in excess of 75 tons of the material per hour. |
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| 231 | 231 | | 7.27 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 232 | 232 | | 7Sec. 7. |
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| 233 | 233 | | REVISOR RSI/AD 25-0519403/26/25 8.1 Sec. 8. [216B.71] DATA CENTERS; ENERGY REQUIREMENTS. |
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| 234 | 234 | | 8.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
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| 235 | 235 | | 8.3the meanings given. |
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| 236 | 236 | | 8.4 (b) "Carbon-free" has the meaning given in section 216B.1691, subdivision 1. |
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| 237 | 237 | | 8.5 (c) "Data center" means a facility whose primary purpose is the storage, management, |
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| 238 | 238 | | 8.6and processing of digital data via the interconnection and operation of information technology |
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| 239 | 239 | | 8.7and network telecommunications equipment, including all related facilities and infrastructure |
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| 240 | 240 | | 8.8for power distribution, environmental control, cooling, and security, and whose average |
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| 241 | 241 | | 8.9hourly electrical load is 100 megawatts or greater. |
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| 242 | 242 | | 8.10 (d) "Political subdivision" means a county, statutory or home rule charter city, town, the |
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| 243 | 243 | | 8.11Metropolitan Council, a port authority, economic development authority, redevelopment |
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| 244 | 244 | | 8.12agency established under chapter 469, or regional development commission. |
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| 245 | 245 | | 8.13 Subd. 2.Carbon-free energy.(a) A data center must, prior to December 31, 2030, |
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| 246 | 246 | | 8.14arrange to generate or procure carbon-free energy equal to at least 65 percent of its electricity |
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| 247 | 247 | | 8.15consumption, measured on an hourly basis. |
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| 248 | 248 | | 8.16 (b) After December 31, 2030, a data center must generate or purchase carbon-free energy |
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| 249 | 249 | | 8.17equal to 100 percent of its electricity requirements, measured on an hourly basis. |
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| 250 | 250 | | 8.18 (c) Tracking and verification of compliance with this subdivision shall be determined |
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| 251 | 251 | | 8.19by the Minnesota Renewable Energy Tracking System or another qualified entity approved |
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| 252 | 252 | | 8.20by the commission. |
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| 253 | 253 | | 8.21 (d) Each data center shall, before beginning operations in this state, submit a plan to the |
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| 254 | 254 | | 8.22commission describing the actions it intends to take to comply with the requirement of |
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| 255 | 255 | | 8.23paragraph (b), and shall make additional filings as required by the commission. |
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| 256 | 256 | | 8.24 (e) The commission may delay or modify a data center's compliance with the requirements |
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| 257 | 257 | | 8.25of paragraph (a) or (b) if it determines that technical constraints impair the ability to |
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| 258 | 258 | | 8.26accurately track and verify carbon-free energy transactions at an hourly level so as to enable |
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| 259 | 259 | | 8.27compliance with those requirements. |
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| 260 | 260 | | 8.28 Subd. 3.State energy targets; modification.If a utility determines that providing |
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| 261 | 261 | | 8.29electric service to a data center may, in whole or in part, contribute to the utility's inability |
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| 262 | 262 | | 8.30to achieve a standard mandated under section 216B.1691, the utility must, no later than two |
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| 263 | 263 | | 8.31years before the standard is required to be met, submit a filing to the commission containing |
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| 264 | 264 | | 8.32a plan describing actions the utility intends to implement in order to achieve the standard |
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| 265 | 265 | | 8.33in a timely manner. The commission shall review and may accept, reject, or modify the plan |
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| 266 | 266 | | 8Sec. 8. |
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| 267 | 267 | | REVISOR RSI/AD 25-0519403/26/25 9.1and may issue an order requiring implementation of an approved plan. The commission |
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| 268 | 268 | | 9.2shall require a utility whose plan was approved under this subdivision to file reports with |
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| 269 | 269 | | 9.3the commission describing actions taken and progress made in achieving the standard, on |
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| 270 | 270 | | 9.4a schedule determined by the commission. |
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| 271 | 271 | | 9.5 Subd. 4.Prevailing wage.A contractor or subcontractor that constructs any portion of |
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| 272 | 272 | | 9.6a data center: |
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| 273 | 273 | | 9.7 (1) must pay no less than the prevailing wage rate, as defined in section 177.42; and |
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| 274 | 274 | | 9.8 (2) is subject to the requirements and enforcement provisions under sections 177.27, |
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| 275 | 275 | | 9.9177.30, 177.32, 177.41 to 177.435, and 177.45. |
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| 276 | 276 | | 9.10 Subd. 5.Reporting.(a) Within one year of being placed in service, and annually |
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| 277 | 277 | | 9.11thereafter on a schedule determined by the commissioner, a data center owner must report |
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| 278 | 278 | | 9.12the following information to the commissioner on a form and on a schedule prescribed by |
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| 279 | 279 | | 9.13the commissioner of commerce: |
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| 280 | 280 | | 9.14 (1) energy consumption during the most recently completed year and during each of the |
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| 281 | 281 | | 9.15past five years, if applicable, and projections of energy consumption for the coming year; |
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| 282 | 282 | | 9.16 (2) efforts made to reduce energy consumption; |
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| 283 | 283 | | 9.17 (3) efforts made to reduce waste heat and to utilize it as thermal energy or electricity; |
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| 284 | 284 | | 9.18and |
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| 285 | 285 | | 9.19 (4) the amount, type, and country of origin of metals used to construct the data center, |
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| 286 | 286 | | 9.20and the percentage of metals used that were recycled. |
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| 287 | 287 | | 9.21 (b) Within one year of being placed in service, and annually thereafter on a schedule |
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| 288 | 288 | | 9.22determined by the commissioner of natural resources, a data center owner must report the |
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| 289 | 289 | | 9.23following information to the commissioner of natural resources, on a form and on a schedule |
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| 290 | 290 | | 9.24prescribed by the commissioner of natural resources: |
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| 291 | 291 | | 9.25 (1) the amount of water withdrawn under the data center's water use permit; |
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| 292 | 292 | | 9.26 (2) the amount of water discharged by the data center to groundwater or surface waters; |
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| 293 | 293 | | 9.27and |
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| 294 | 294 | | 9.28 (3) the amount of water evaporated when used for cooling data center equipment. |
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| 295 | 295 | | 9.29 Subd. 6.Noncompliance; ineligibility for financial assistance.Notwithstanding any |
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| 296 | 296 | | 9.30other law, a data center that fails to comply with any of the requirements of this section is |
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| 297 | 297 | | 9.31ineligible to receive any financial incentives provided by this state for which it is otherwise |
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| 298 | 298 | | 9.32eligible, including tax incentives, until it has submitted documentation of compliance to the |
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| 299 | 299 | | 9Sec. 8. |
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| 300 | 300 | | REVISOR RSI/AD 25-0519403/26/25 10.1commissioner of commerce and has received written notice from the commissioner of |
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| 301 | 301 | | 10.2commerce that it is in compliance with all the provisions of this section. |
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| 302 | 302 | | 10.3 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 303 | 303 | | 10.4 Sec. 9. [216B.72] DATA CENTER FEE. |
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| 304 | 304 | | 10.5 (a) A fee of $....... is imposed on a data center, as defined in section 216B.71, for each |
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| 305 | 305 | | 10.6megawatt of the data center's peak demand. The fee must be collected monthly by the utility |
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| 306 | 306 | | 10.7providing electric service to the data center and deposited in the energy and conservation |
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| 307 | 307 | | 10.8account established in section 216B.241, subdivision 2a. |
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| 308 | 308 | | 10.9 (b) For the purposes of this section, "peak demand" means the largest demand a data |
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| 309 | 309 | | 10.10center imposes on an electric utility's system, expressed in megawatts, during a 30-minute |
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| 310 | 310 | | 10.11period within the most recent month. |
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| 311 | 311 | | 10.12 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 312 | 312 | | 10.13Sec. 10. CLEAN ENERGY TARIFF. |
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| 313 | 313 | | 10.14 (a) No later than January 1, 2026, the Public Utilities Commission shall develop and |
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| 314 | 314 | | 10.15establish a clean energy tariff and terms and conditions for energy supply agreements under |
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| 315 | 315 | | 10.16which a separate customer class composed solely of all data centers receiving electric service |
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| 316 | 316 | | 10.17from a public utility located in this state must operate. The tariff and energy supply agreement |
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| 317 | 317 | | 10.18must be designed to insulate the utility's other customers from the energy costs attributable |
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| 318 | 318 | | 10.19to data centers and to ensure that arrangements made to provide electric service to a data |
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| 319 | 319 | | 10.20center will: |
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| 320 | 320 | | 10.21 (1) not interfere with or jeopardize a utility's achieving the mandated renewable energy |
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| 321 | 321 | | 10.22and carbon-free standards established under Minnesota Statutes, sections 216B.1691 and |
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| 322 | 322 | | 10.23216B.71, subdivision 2; |
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| 323 | 323 | | 10.24 (2) not impair a utility's system reliability or its ability to provide electric service to its |
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| 324 | 324 | | 10.25other customers; |
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| 325 | 325 | | 10.26 (3) require payment of the data center's full portion of the utility's cost to procure |
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| 326 | 326 | | 10.27electricity, and for the full transmission and distribution costs necessary to deliver that |
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| 327 | 327 | | 10.28electricity to the data center, including any construction or upgrading of transmission, |
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| 328 | 328 | | 10.29distribution, or other utility infrastructure; and |
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| 329 | 329 | | 10.30 (4) ensure that ratepayers are fully protected from bearing any portion of the cost resulting |
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| 330 | 330 | | 10.31from: |
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| 331 | 331 | | 10Sec. 10. |
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| 332 | 332 | | REVISOR RSI/AD 25-0519403/26/25 11.1 (i) a data center's failure to meet its projected level of electricity demand; |
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| 333 | 333 | | 11.2 (ii) a data center's termination of its operations in this state earlier than agreed to in an |
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| 334 | 334 | | 11.3energy supply agreement; |
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| 335 | 335 | | 11.4 (iii) an electricity supplier's failure to fully meet the terms of its supply contract with |
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| 336 | 336 | | 11.5the utility; or |
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| 337 | 337 | | 11.6 (iv) early termination of an energy supply agreement. |
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| 338 | 338 | | 11.7 (b) The Public Utilities Commission may require a data center to post a bond of sufficient |
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| 339 | 339 | | 11.8magnitude to guarantee performance under the tariff and energy supply agreement. |
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| 340 | 340 | | 11.9 (c) For purposes of this section, the following terms have the meanings given: |
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| 341 | 341 | | 11.10 (1) "data center" has the meaning given in Minnesota Statutes, section 216B.71, |
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| 342 | 342 | | 11.11subdivision 1; and |
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| 343 | 343 | | 11.12 (2) "energy supply agreement" means an agreement between a data center and a utility |
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| 344 | 344 | | 11.13providing electric service to a data center governing the transfer of electricity from a generator |
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| 345 | 345 | | 11.14to the data center under a clean energy tariff. |
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| 346 | 346 | | 11.15 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 347 | 347 | | 11Sec. 10. |
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| 348 | 348 | | REVISOR RSI/AD 25-0519403/26/25 |
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