1.1 A bill for an act
1.2 relating to energy; providing for data center energy generation redundancy;
1.3 amending Minnesota Statutes 2024, sections 116D.04, subdivision 4a; 216B.02,
1.4 by adding subdivisions; 216B.243, subdivision 8; 216I.02, by adding a subdivision;
1.5 216I.07, subdivisions 2, 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read:
1.8 Subd. 4a.Alternative review.(a) The board shall by rule identify alternative forms of
1.9environmental review which will address the same issues and utilize similar procedures as
1.10an environmental impact statement in a more timely or more efficient manner to be utilized
1.11in lieu of an environmental impact statement.
1.12 (b) Upon adoption by the responsible governmental unit of the environmental document
1.13and plan for mitigation under an alternative urban areawide review process, and
1.14notwithstanding any additional environmental review that may otherwise be required for a
1.15phased action or connected action, or project component that was not evaluated in the
1.16alternative urban areawide review process, environmental review is complete and the
1.17prerequisites under subdivision 2b are satisfied with regards to the anticipated residential,
1.18commercial, warehousing, and light industrial development projects that are consistent with
1.19development assumptions within the established boundaries of the geographic area to which
1.20the alternative urban areawide review applies.
1.21 EFFECTIVE DATE.This section is effective the day following final enactment.
1Section 1.
S1393-1 1st EngrossmentSF1393 REVISOR RSI
SENATE
STATE OF MINNESOTA
S.F. No. 1393NINETY-FOURTH SESSION
(SENATE AUTHORS: MATHEWS, Jasinski, Hoffman and Frentz)
OFFICIAL STATUSD-PGDATE
Introduction and first reading38602/13/2025
Referred to Energy, Utilities, Environment, and Climate
Author added Frentz87303/17/2025
Author stricken Eichorn102603/24/2025
Comm report: To pass as amended and re-refer to Environment, Climate, and Legacy03/27/2025 2.1 Sec. 2. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
2.2read:
2.3 Subd. 11.Emergency backup generator."Emergency backup generator" means a
2.4stationary compressed ignition or spark ignition engine described under Code of Federal
2.5Regulations, title 40, parts 60.4211(f) and 60.4243(d), respectively, that is installed with
2.6equipment that prevents the flow of electricity to the electric grid.
2.7 EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 3. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
2.9read:
2.10 Subd. 12.Data center."Data center" means a freestanding structure that primarily
2.11contains electronic equipment used to process, store, and transmit digital information.
2.12 Sec. 4. Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read:
2.13 Subd. 8.Exemptions.(a) This section does not apply to:
2.14 (1) cogeneration or small power production facilities as defined in the Federal Power
2.15Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
2.16paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
2.17than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
2.18any case where the commission has determined after being advised by the attorney general
2.19that its application has been preempted by federal law;
2.20 (2) a high-voltage transmission line proposed primarily to distribute electricity to serve
2.21the demand of a single customer at a single location, unless the applicant opts to request
2.22that the commission determine need under this section or section 216B.2425;
2.23 (3) the upgrade to a higher voltage of an existing transmission line that serves the demand
2.24of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
2.25request that the commission determine need under this section or section 216B.2425;
2.26 (4) a high-voltage transmission line of one mile or less required to connect a new or
2.27upgraded substation to an existing, new, or upgraded high-voltage transmission line;
2.28 (5) conversion of the fuel source of an existing electric generating plant to using natural
2.29gas;
2Sec. 4.
S1393-1 1st EngrossmentSF1393 REVISOR RSI 3.1 (6) the modification of an existing electric generating plant to increase efficiency, as
3.2long as the capacity of the plant is not increased more than ten percent or more than 100
3.3megawatts, whichever is greater;
3.4 (7) a large wind energy conversion system, as defined in section 216I.02, subdivision
3.512, or a solar energy generating system, as defined in section 216I.02, subdivision 18, for
3.6which a site permit application is submitted by an independent power producer under chapter
3.7216I;
3.8 (8) a large wind energy conversion system, as defined in section 216I.02, subdivision
3.912, or a solar energy generating system, as defined in section 216I.02, subdivision 18,
3.10engaging in a repowering project that:
3.11 (i) will not result in the system exceeding the nameplate capacity under its most recent
3.12interconnection agreement; or
3.13 (ii) will result in the system exceeding the nameplate capacity under its most recent
3.14interconnection agreement, provided that the Midcontinent Independent System Operator
3.15has provided a signed generator interconnection agreement that reflects the expected net
3.16power increase;
3.17 (9) energy storage systems, as defined in section 216I.02, subdivision 6;
3.18 (10) transmission lines that directly interconnect large wind energy conversion systems,
3.19solar energy generating systems, or energy storage systems to the transmission system; or
3.20 (11) relocation of an existing high voltage transmission line to new right-of-way, provided
3.21that any new structures that are installed are not designed for and capable of operation at
3.22higher voltage.; or
3.23 (12) a combination of emergency backup generators at a single site with a combined
3.24capacity of 50,000 kilowatts or more that provides power to a data center and is eligible for
3.25permitting as a single stationary source under Minnesota Rules, parts 7007.0200, 7007.0250,
3.267007.1100, or 7007.1110 to 7007.1141.
3.27 (b) For the purpose of this subdivision, "repowering project" means:
3.28 (1) modifying a large wind energy conversion system or a solar energy generating system
3.29that is a large energy facility to increase its efficiency without increasing its nameplate
3.30capacity;
3.31 (2) replacing turbines in a large wind energy conversion system without increasing the
3.32nameplate capacity of the system; or
3Sec. 4.
S1393-1 1st EngrossmentSF1393 REVISOR RSI 4.1 (3) increasing the nameplate capacity of a large wind energy conversion system.
4.2 EFFECTIVE DATE; APPLICATION.This section is effective the day following
4.3final enactment and applies to applications under Minnesota Statutes, section 216B.243,
4.4that are pending before or submitted to the Public Utilities Commission on or after that date.
4.5 Sec. 5. Minnesota Statutes 2024, section 216I.02, is amended by adding a subdivision to
4.6read:
4.7 Subd. 5a.Emergency backup generator."Emergency backup generator" has the
4.8meaning given in section 216B.02, subdivision 11.
4.9 EFFECTIVE DATE.This section is effective the day following final enactment.
4.10 Sec. 6. Minnesota Statutes 2024, section 216I.07, subdivision 2, is amended to read:
4.11 Subd. 2.Applicable projects.The requirements and procedures under this section apply
4.12to projects for which the applicant's proposal is:
4.13 (1) large electric power generating plants with a capacity of less than 80 megawatts;
4.14 (2) a combination of emergency backup generators designed to serve one person and
4.15located on property owned or controlled by the person;
4.16 (2) (3) large electric power generating plants that are fueled by natural gas;
4.17 (3) (4) high-voltage transmission lines with a capacity between 100 and 300 kilovolts;
4.18 (4) (5) high-voltage transmission lines with a capacity in excess of 300 kilovolts and
4.19less than 30 miles in length in Minnesota;
4.20 (5) (6) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at
4.21least 80 percent of the distance of the line in Minnesota, as proposed by the applicant, is
4.22located along existing high-voltage transmission line right-of-way;
4.23 (6) (7) solar energy systems;
4.24 (7) (8) energy storage systems; and
4.25 (8) (9) large wind energy conversion systems.
4.26 EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2025, and
4.27applies to applications under Minnesota Statutes, section 216I.07, that are pending before
4.28or submitted to the Public Utilities Commission on or after that date.
4Sec. 6.
S1393-1 1st EngrossmentSF1393 REVISOR RSI 5.1 Sec. 7. Minnesota Statutes 2024, section 216I.07, subdivision 3, is amended to read:
5.2 Subd. 3.Environmental review.(a) For the projects identified in subdivision 2 and
5.3following the procedures under this section, the applicant must prepare and submit an
5.4environmental assessment with the application. A draft of the environmental assessment
5.5must also be provided to commission staff as part of the preapplication review under section
5.6216I.05, subdivision 6. The environmental assessment must (1) contain information regarding
5.7the proposed project's human and environmental impacts, and (2) address mitigating measures
5.8for identified impacts. The environmental assessment for projects identified in subdivision
5.92, clause (2), must also include a discussion of reasonable alternatives to the proposed
5.10project considering (i) the appropriateness of the size and type of the proposed method of
5.11generation compared to those of reasonable alternatives; (ii) the cost to the proposer of
5.12energy to be supplied by the project compared to the cost of energy that would be supplied
5.13by reasonable alternatives; (iii) the effects of the proposed project upon the natural and
5.14socioeconomic environments compared to the effects of reasonable alternatives; and (iv)
5.15the expected reliability of the proposed facility compared to the expected reliability of
5.16reasonable alternatives. The environmental assessment is the only state environmental
5.17review document that must be prepared for the proposed project.
5.18 (b) If after the public meeting the commission identifies other sites or routes or potential
5.19impacts for review, the commission must prepare an addendum to the environmental
5.20assessment that evaluates (1) the human and environmental impacts of the alternative site
5.21or route, and (2) any additional mitigating measures related to the identified impacts
5.22consistent with the scoping decision made pursuant to section 216I.06, subdivision 10,
5.23clause (2). The public may provide comments on the environmental assessment and any
5.24addendum to the environmental assessment at the public hearing and comment period under
5.25subdivision 4. When making the commission's final decision, the commission must consider
5.26the environmental assessment, the environmental assessment addendum, if any, and the
5.27entirety of the record related to human and environmental impacts.
5Sec. 7.
S1393-1 1st EngrossmentSF1393 REVISOR RSI