Minnesota’s legislative session concluded on May 19. However, the Legislature was unable to come to agreement on several budget bills and will need to conduct a special session to complete the budgeting process. A date for the special session has not yet been set.
With the next fiscal biennium beginning on July 1, the Legislature must approve all budget bills and have them signed into law by the governor before midnight on June 30, otherwise the state government will shut down.
Still left unfinished are budgets in the areas of commerce, education, energy, environment and natural resources, health, higher education, human services, labor and workforce development, and transportation.
The tax bill is also on the to-do list, which sets parameters for revenue collection to fund all state programs. Neither the House nor the Senate had an omnibus tax bill voted upon by the time the two chambers adjourned Monday.
Conference committees, which are made up of members from both the House and Senate, are tasked with reconciling differences between two versions of bills that have been passed by both bodies. The committees will continue to convene during the special session to come to agreement on all budget bills to avoid a government shutdown.
Below are the bills we are monitoring so far.
We welcome your input. Feel free to be in touch about these or any other bills you feel are important to rural communities. I can be reached at [email protected] or 507.581.8545.
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Members of the general public can and are encouraged to testify before committees. This needs to be arranged with committee staff assigned to the bill prior to a scheduled hearing. Email addresses can be found here by clicking on the specific committee within the House or Senate.
Energy and environment
Senate File (SF) 441 – Support: This bill, brought by Sen. Coleman, creates a temporary income tax credit for the purchase and installation of solar energy systems. This credit would apply to classifications of business property and homesteads, including agricultural homesteads. This bill was heard on Jan. 30 in the Committee on Taxes. It was amended and laid over. Laying over a bill delays its consideration.
This bill was not included in the Senate Omnibus Tax bill (SF 2374) and is considered dead for this session.
House File (HF) 771 and SF 486 – Support: These companion bills, brought by Rep. Kraft and Sen. Dibble, appropriate money for a supplemental energy assistance program to provide financial support to complement Minnesota’s Energy Assistance Program (EAP) and the income-qualified Minnesotans whom it helps. The House bill was heard on March 25 by the Committee on Energy Finance and Policy and was laid over. The Senate bill was heard on Feb. 5 in the Committee on Energy, Utilities, Environment, and Climate and laid over for possible inclusion in the omnibus bill.
Neither the House nor the Senate version were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills are considered dead for this session.
HF 9 and SF 572 – Monitor: These companion bills, brought separately by Rep. Swedzinski in the House and Sen. Mathews in the Senate, allow hydroelectric facilities of any capacity and age to qualify under the renewable energy standard; delay the deadline by three years for electric utilities to meet standards set in the 100% clean electricity law; prohibit the demolition of fossil fuel-powered electric generating plants; make it a policy of the state to support the development and deployment of carbon capture and sequestration technologies; and expand the sales tax exemption for residential heating fuels and electricity.
Notably, this legislation lifts the nuclear moratorium and aims to delay many standards set in the 100% clean electricity law passed in 2023, which committed all utilities to provide their Minnesota customers with 100% carbon-free electricity by 2040.
The House bill was heard on Feb. 26 by the Committee on Taxes and was referred to the Committee on Ways and Means. The Senate bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.
The House bill was not included in the Energy omnibus bill (HF 2442) and is considered dead for this session. The Senate bill was included in the Energy omnibus bill (SF 2393).
HF 1073 and SF 733 – Support: These companion bills, brought by Rep. Hansen and Sen. Kunesh, lay out the responsibilities for abandoning a pipeline, including a timeline and land restoration planning, and require the approval of an abandonment plan prior to disconnecting the pipeline’s service, which includes mandatory public hearings. While the industry uses the term “pipeline abandonment” when they wish to end use, the equipment needs to be decommissioned and removed to restore the land where the pipeline was sited. This legislation would ensure proper decommissioning of a pipeline and make sure that landowners do not get stuck removing pipeline infrastructure.
The House bill was introduced and referred to the Committee on Transportation Finance and Policy. The Senate bill was heard on March 19 by the Committee on Energy, Utilities, Environment, and Climate and was recommended to pass. It was re-referred to the Committee on Environment, Climate, and Legacy.
Neither the House nor the Senate version were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills are considered dead for this session.
HF 1013 and SF 761 – Support: These companion bills, brought by Rep. Kraft and Sen. Xiong, appropriate $5 million from the renewable development account in the special revenue fund to Minnesota Energy Alley, an initiative to secure the state's energy and economic development future. The money from the grant may be used to establish and support the initiative, provide seed funding for businesses, develop a training and development program, support recruitment of entrepreneurs to Minnesota, and secure funding from federal programs and corporate partners to establish a self-sustaining, long-term revenue model.
The House bill was heard on March 18 by the Committee on Energy Finance and Policy and laid over for possible inclusion in the omnibus bill. The Senate bill was heard on April 2 by the Committee on Energy, Utilities, Environment, and Climate and was laid over for possible inclusion in the omnibus bill. The Center submitted a comment in support.
A $1 million appropriation was included in the House (HF 2442) and Senate Energy (SF 2393) omnibus bills.
HF 880 and SF 997 – Monitor: These companion bills, brought by Rep. Rymer and Sen. Koran, require community solar garden subscribers to reside in the same county as the solar garden generating facility. Currently, a community solar garden subscriber must only be located in the Minnesota service territory of the utility operating the solar garden. The House bill was introduced and referred to the Committee on Energy Finance and Policy. The Senate bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.
Neither the House nor the Senate version were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills are considered dead for this session.
HF 845 and SF 1142 – Oppose: These companion bills, brought by Rep. Baker and Sen. Rarick, modify Minnesota’s current net metering law. Under current law, if your home or business generates excess electricity from solar panels on your property, you qualify for what is known as net metering. Net metering is a policy where utilities credit customers for excess electric generation, reducing the customer’s bill while providing the utility with low-cost electricity. These bills seek to lower the rate of compensation.
Under current net metering policy, people with solar arrays under 40 kW get paid the retail electric rate for any energy they send to the grid. This bill would reduce payments by switching to an avoided cost rate for projects under 40 kW in municipal and cooperative utilities territories. The retail electric rate is the price consumers pay for electricity, which includes the wholesale cost of electricity plus fees for transmission, distribution, taxes, and regulatory charges, all based on usage. The avoided cost rate is the minimum financial amount that an electric utility is required to pay an independent power producer. Since it only accounts for the cost of generating power, the avoided cost rate is usually significantly lower than the retail rate a customer pays.
Net metering has given opportunities for rural communities to participate in distributed power generation. This bill would unfairly compensate homeowners, farmers, and small businesses who made the choice to take control of their energy future with solar and discourage others from choosing solar to lower their energy costs. Moreover, this bill would reduce the amount of homegrown energy we can generate locally in Minnesota.
The House bill was heard on March 11 by the House Floor and was laid on the table. This means that further consideration of the bill is postponed, effectively killing it for the current legislative session unless a motion is made to take it off the table. The Senate bill was heard on March 10 by the Committee on Energy, Utilities, Environment, and Climate, which laid the bill over for possible inclusion in the omnibus bill.
The House bill was not included in the Energy omnibus bill (HF 2442). The Senate bill was included in the Energy omnibus bill (SF 2393), which did not pass during the regular session and will be worked on during the special session.
HF 1588 and SF 2377 – Support: These companion bills, brought by Rep. Mekeland and Sen. Mathews, appropriate $6.5 million in 2026 from the general fund to the commissioner of employment and economic development for the community energy transition grant program. Similarly, companion bills HF 2072 and SF 2570, brought by Rep. Hill and Sen. Hauschild, appropriate $10 million in 2026 for the grant program.
The grant program provides funds for research, planning, and implementation activities to support eligible Minnesota communities with power plants fueled by coal, natural gas, or nuclear energy that are scheduled to close, have recently closed, or are due to have their operating license expire soon. The goal of this program is to help the state's "energy transition communities" minimize the negative consequences from closures and maximize opportunities for future economic growth and community well-being.
The House bills were introduced and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy. The Senate bills were introduced and referred to the Committee on Jobs and Economic Development. SF 2570 was heard by the Committee on April 2 and was laid over for possible inclusion.
None of these bills were included in an omnibus bill and are considered dead for this session.
HF 1707 and SF 2664 – Monitor: These companion bills, brought by Rep. Mekeland and Sen. Mathews, require that an applicant wanting a solar project permit of any capacity must receive approval from each local unit of government and Minnesota Tribal government that has jurisdiction over the proposed site location. It further removes the requirement that a permit is issued by the Public Utilities Commission to construct a solar project with a capacity of less than 50 megawatts. The House bill was introduced and referred to the Committee on Energy Finance and Policy. The Senate bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.
Neither the House nor the Senate version were included in their respective Energy omnibus bill (HF 2442 and SF 2393). These bills are considered dead for this session.
HF 1738 and SF 2369 – Oppose: These companion bills, brought by Rep. Swedzinski and Sen. Mathews, repeal the renewable development account and end a solar energy production incentive program.
The Renewable Development Account, also known as the Renewable Development Fund, was established in 1994 when Xcel Energy was given permission to store nuclear waste at its Prairie Island plant in southeastern Minnesota, and for further storage at its Monticello plant that was added in 2007. For each waste cask used, Xcel gives the state between $350,000 and $500,000 annually. Each year, Xcel must set aside money for the fund in accordance with state statute. Money from the fund comes from Xcel electric customers in Minnesota and Wisconsin after grant awards are approved by the Minnesota Public Utilities Commission for the development of renewable energy sources in Minnesota.
The Renewable Energy Account funds Xcel Energy’s Solar*Rewards program, which provides incentives for solar energy systems, with a focus on low-income and income-qualified projects. Customers who install solar panels receive payments for the energy their systems produce in exchange for Renewable Energy Credits (RECs). Additionally, all Solar*Rewards customers receive net energy metering benefits. These companion bills would halt the program.
The House bill was heard on March 4 by the Committee on Energy Finance and Policy. The Committee approved the bill by an 8-7 party-line vote and sent it to the Committee on Ways and Means. The Senate bill was introduced and referred to the Committee on Energy, Utilities, Environment, and Climate.
Both the House and the Senate versions were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills did not come to agreement during the regular session, so they will be worked on during the special session.
HF 2103 and SF 1710 – Support: These companion bills, brought by Rep. P.H. Anderson and Sen. Putnam, appropriate $9 million from the general fund to the commissioner of commerce for a grant to the Midwest Renewable Energy Tracking System (MRETS). This funding allows MRETS to deploy technology that enables the tracking of tradable ammonia, hydrogen, and renewable energy certificates, creating a system to ensure there is no double counting of energy certificates and maximizing the benefits of the program by ensuring funds are distributed more broadly.
This legislation assists in facilitating local investments in fertilizer production, reducing the financial impacts on the state’s farms and farm businesses. Local production reduces costs associated with transportation while creating local economic development opportunities in rural areas. Having a system to track certificates is important to spread benefits across the state, especially to rural areas.
The House bill was heard on March 27 by the Committee on Energy Finance and Policy and was laid over for possible inclusion in an omnibus bill. The Senate bill was heard on March 5 by the Committee on Energy, Utilities, Environment, and Climate and was laid over for possible inclusion in the omnibus bill. The Center submitted a comment in support.
Neither the House nor the Senate version were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills are considered dead for this session.
HF 2297 and SF 2653 – Support: These companion bills, brought by Rep. Myers and Sen. Kupec, define agrivoltaics, a practice of combining solar energy production with agricultural activities on the same land, and create a special license plate to self fund the Minnesota’s Board of Water and Soil Resources solar pollinator program. The program supports the establishment of habitat for pollinators, songbirds, and other species in addition to project co-benefits such as water management, grazing, and soil health.
Solar grazing, pollinator habitat, and growing crops under solar panels are all examples of agrivoltaics. The practice offers farmers financial stability and an option to diversify income through land lease payments for solar projects while stewarding land through practices that offer environmental benefits, such as reduced water consumption and improved crop resilience.
Defining the term agrivoltaics in legislation is important for clarity, consistency, and to avoid ambiguity, which ensures laws are understood and applied uniformly, and that the public can understand their rights and responsibilities.
The House bill was heard on April 1 by the Committee on Energy Finance and Policy and was referred to the Committee on Agriculture Finance and Policy. The Senate bill was heard on April 21 by the Committee on Energy, Utilities, Environment, and Climate, but no committee action was taken. The Center joined a comment in support.
Neither the House nor the Senate version were included in an Omnibus bill. These bills are considered dead for this session.
HF 2793 and SF 2855 – Oppose: These companion bills, brought by Rep. Swedzinski and Sen. Frentz, change the sunset date for the state's community solar garden program from 2031 to July 31, 2028. A community solar garden is a shared solar power facility where multiple participants (individuals, businesses, or organizations) benefit from the electricity generated by a solar project, typically receiving credits on their utility bills for their share of the power produced.
Community solar gardens started with a 2013 state law and sparked the growth of solar in Minnesota. The original program allowed third-party developers to build mid-sized solar arrays in Xcel Energy territory. Subscribers receive credits for the energy produced for the grid. The program was amended in 2023 to direct it toward low- and moderate-income residential customers and to cap the amount of solar that could be installed each year.
Community solar offers residents and businesses the opportunity to participate in solar energy projects with no upfront investment for solar panel installation. It offers cost savings on consumers' electricity bills, supports local economies, and creates jobs. The existing program has active participation and delivers benefits to residential and business customers across the state. According to the Community Solar Garden Study, released by the Minnesota Department of Commerce in 2024, the program has delivered affordable, renewable energy to over 34,000 families and businesses and is projected to generate $1.67 billion in economic benefits statewide.
Amendments to the community solar legislation in 2023 capped the amount of energy that can be built at community solar gardens each year at 100 megawatts. That is enough to power roughly 16,400 homes, but per current state statute (2024), the amount gradually decreases to just 60 megawatts in 2031 and thereafter. With an existing capacity limit drawdown period already outlined in the current legislation, the proposed companion bills would unnecessarily expedite the end of the program and dismantle the possibility for new community solar. This would subsequently eliminate local renewable energy jobs and eliminate cost saving opportunities for electricity consumers.
The House bill was heard on March 27 by the Committee on Energy Finance and Policy and was laid over. The Senate bill was heard by the Committee on Energy, Utilities, Environment, and Climate on March 26 and was recommended to pass.
Both the House and the Senate versions were included in their respective Energy omnibus bills (HF 2442 and SF 2393). These bills did not come to agreement during the regular session, so they will be worked on during the special session.
SF 2393 – Oppose: This bill, brought by Sen. Frentz, is the Senate Energy, Utilities, Environment, and Climate Committee omnibus legislation. An omnibus bill is generally made up of numerous bills on the same broad topic. These bills have already been heard in committee and then laid over for possible inclusion in the omnibus bill rather than passed separately. SF 2393 creates a barrier for residents wishing to take advantage of renewable energy and would limit the state’s efforts to provide reliable and affordable renewable energy while meeting its carbon reduction goals.
The omnibus legislation incorporates several negative pieces of legislation, including altering how net-metering would operate in the state (as originally laid out in HF 845 and SF 1142). The omnibus bill also sunsets the community solar garden program (as originally laid out in HF 2793 and SF 2855). Finally, it shuts down the Renewable Development Account and ends a solar energy production incentive program (as originally laid out in HF 1738 and SF 2369), which would eliminate grant and financial incentive opportunities that have helped Minnesotans take advantage of renewable energy.
This bill was heard on May 8 by the Committee on Finance, but no Committee action was recorded. This bill did not come to agreement during the regular session, so it will be worked on during the special session.
Economic and community development
SF 29, SF 217, and SF 478 – Support: Seeking the same outcome, these bills—brought by Sens. Nelson, Jasinski, and Housley, respectively—appropriate $25 million from the bond proceeds fund to the commissioner of transportation for the Small Cities Assistance program. This program supplies road aid to smaller Minnesota cities; eligibility is limited to cities that are not receiving municipal state-aid street funds, which generally means the city must have a population of under 5,000. There has not yet been any effort to reconcile the redundant legislation. SF 29 and SF 478 were introduced and referred to the Committee on Capital Investment. SF 217 was introduced and referred to the Committee on Transportation. No action was taken on these bills, so they are considered dead for this session.
HF 1360 and SF 2203 – Support: These companion bills, brought by Rep. Koegel and Sen. Pappas, appropriate $2.5 million in 2026 and $2.5 million in 2027 from the general fund to the Board of Regents of the University of Minnesota to fund the Empowering Small Minnesota Communities Program. This program provides technical assistance to small Minnesota communities and local government units to develop resilient, sustainable, and adaptable infrastructure projects. Examples of infrastructure projects include physical systems like broadband, housing, and energy systems as well as community-oriented projects that encourage social connection, like health care, education, and recreation. Under this program, small communities are defined as local jurisdictions of fewer than 15,000 people. The House bill was heard on March 19 by the Committee on Transportation Finance and Policy and was laid over. The Senate bill was heard on April 7 by the Committee on Transportation, but no action was taken.
The House and Senate bills were included in their respective Omnibus Transportation bills (HF 2438 and SF 2082) with a $250,000 appropriation.
HF 1552 and SF 843 – Support: These bills, brought by Sen. Hauschild and Rep. Skraba, allow for more rapid expansion of broadband services by increasing the cap on the Lower Population Density Grant Program from 75% of the total cost of a project to 90%.
As part of Minnesota’s Border-to-Border Broadband Development Grant Program, projects located in unserved or underserved areas of the state are eligible to apply for funding from the Lower Population Density Grant Program to expand broadband access. With some stipulations, eligible applicants include incorporated businesses or partnerships, political subdivisions, Tribes, nonprofit organizations, cooperative associations, or limited liability corporations. The House bill was introduced and referred to the Committee on Agriculture Finance and Policy. The Senate bill was introduced and referred to the Committee on Agriculture, Veterans, Broadband, and Rural Development.
Neither the House nor the Senate bills were included in an Omnibus bill and are considered dead for this session.
HF 1655 and SF 2050 – Support: These companion bills, brought by Rep. Pursell and Sen. Nelson, appropriate $627,000 from the general fund to the commissioner of employment and economic development for a grant to Community and Economic Development Associates (CEDA) to provide funding for economic development technical assistance and economic development project grants to small communities across rural Minnesota. This would also allow CEDA to design, implement, market, and administer specific types of basic community and economic development programs tailored to individual community needs. Of the amount appropriated, up to $270,000 may be used for economic development project implementation in conjunction with the technical assistance received.
The House bill was introduced and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy. The Senate bill was heard on March 10 by the Committee on Jobs and Economic Development, but no action was taken.
The Senate bill was included in the Omnibus Jobs, Labor Economic Development bill (SF 1832), and included a $627,000 appropriation. The House bill was not included and is considered dead for this session.
HF 2099 and SF 2119 – Support: These companion bills, brought by Rep. Johnson, P. and Sen. Kupec, appropriate $12 million in 2026 and $12 million in 2027 from the general fund to the commissioner of public safety to distribute local emergency management funding to emergency management departments in all 87 counties, 11 federally recognized Tribes, and four cities of the first class (defined by a population of over 100,000 people) for planning and preparedness activities, including capital purchases. The funds would be distributed evenly among the eligible counties, Tribes, and cities. Funds must be used for emergency management and preparedness activities, including but not limited to planning, training, equipment purchases, infrastructure improvements, and addressing emerging threats.
The House bill was heard on April 1 by the Committee on Public Safety Finance and Policy and was laid over. The Senate bill was heard on March 24 by the Committee on Judiciary and Public Safety and was laid over for possible inclusion in the omnibus bill.
Neither the House nor the Senate version were included in an Omnibus bill. These bills are considered dead for this session.
HF 337 and SF 1080 – Support: These companion bills, brought by Rep. Zeleznikar and Sen. Hauschild, establish an ambulance operating deficit grant program to award grants to applicants to address revenue shortfalls creating operating deficits among eligible applicants. This deficit account is created in the special revenue fund in the state treasury.
In rural areas, the financial burden for emergency medical services falls heavily on small and aging taxpayer bases, as these services are often funded through local levies. In 2024, the Legislature and governor sent $24 million to struggling EMS companies, but this bill offers a more permanent solution.
The House bill was heard on Feb. 24 by the Committee on Health Finance and Policy and was laid over as amended. The Senate bill was heard on March 19 by the Committee on Health and Human Services and laid over for possible inclusion in the omnibus funding bill.
The Senate bill was included in the Omnibus Health and Human Services bill (SF 2669) with an $18 million appropriation. The House bill was not included in an Omnibus bill and is considered dead for this session.
HF 93 and SF 1132 – Support: These companion bills, brought by Rep. Baker and Sen. Hoffman, appropriate $750,000 in 2026 and $750,000 in 2027 from the general fund to the Office of Emergency Medical Services for the ambulance service training and staffing grant program, which supports rural ambulance services by establishing grants to provide EMTs with a living wage while they complete training.
The House bill was heard on Feb. 24 by the Committee on Health Finance and Policy and was laid over as amended. The Senate bill was heard on March 19 by the Committee on Health and Human Services and laid over for possible inclusion in the omnibus funding bill.
The House bill was included in the Omnibus Health and Human Services bill (HF 2435) with $500,000 appropriated in 2026 and $500,000 appropriated in 2027. The Senate bill was included in the Omnibus Health and Human Services bill (SF 2669) with the same appropriation.
