Minnesota House Bill HF2928

Minnesota 2025-2026 Regular Session

• Introduced: 3/27/25
• Refer: 3/27/25

Caption

Preapplication filings for large water appropriation projects required, permit application information for large water appropriation projects added, level of environmental review for data centers specified, data centers exempted from making financial contributions to an energy conservation and optimization plan, and other data center provisions modified.

Impact

In addition to setting new requirements for water appropriation, HF2928 establishes specific environmental review processes for data centers expanding their energy consumption by significant amounts. Notably, data centers are also exempted from contributing to certain energy conservation plans, thereby sparking some debate regarding the balance between supporting high-technology industries and prioritizing sustainability commitments. The bill proposes a clean energy tariff that requires data centers to ensure a progressive transition toward 100% carbon-free energy consumption by the end of 2030.

Summary

House File 2928 aims to revise regulations surrounding large water appropriation projects and the energy requirements for data centers in Minnesota. The bill mandates that any large water appropriation project—defined as utilizing over 100 million gallons per year—must undergo preapplication evaluations to assess compatibility with existing water users. The intent is to facilitate a more efficient permitting process while ensuring adequate water supply in resource-limited areas. Consequently, applicants for these large projects are encouraged to engage with appropriate state departments early in their development cycle.

Contention

Supporters advocate that the bill streamlines energies allowing for faster development of critical infrastructure while addressing environmental conservation. On the other hand, opponents raise concerns about the implications of exemptions for data centers, fearing they could encourage excessive energy use without adequate environmental oversight. The debate extends to how these measures may disproportionately favor tech companies at the expense of broader environmental responsibilities. Critics argue that the proposed measures undermine the intent of existing conservation strategies, emphasizing that the balance between environmental preservation and economic development must be carefully maintained.