MN SF2393

Summary of Minnesota S.F. No. 2393 - Energy Omnibus Bill

• Appropriates $25.3 million for FY2026-2027 to the Department of Commerce ($12.6M/year from general and petroleum tank funds) and Public Utilities Commission ($13.3M-$13.4M/year) for energy-related programs including weatherization, community solar gardens, energy benchmarking, and grid-enhancing technologies

• Allocates $20.6 million from the Renewable Development Account for one-time grants including $5M to University of Minnesota for hydrogen/ammonia energy research, $4M for anaerobic digester construction, $2.2M for Como Zoo geothermal system, $2M for St. Cloud green hydrogen project, and $1.2M for University of St. Thomas microgrid research

• Sunsets the Renewable Development Account by repealing sections 116C.779 and 116C.7791, transferring remaining funds back to utility ratepayers, and shifting the solar energy production incentive program to commissioner of commerce operation with general fund appropriations beginning January 1, 2026

• Authorizes natural gas utilities to issue "extraordinary event bonds" (up to 30-year term, AA/Aa2 rated) to finance costs from storms, disasters, cyberattacks, or wholesale price spikes, with nonbypassable charges on all customers to repay bondholders

• Modifies energy policy provisions including expanding the carbon-free standard definition to include biomass wood chips, removing hydroelectric capacity limits from eligible energy technology, exempting data center emergency backup generators from certificate of need requirements, and setting community solar gardens program to expire July 31, 2028