House passes a much lighter ‘lights-on’ omnibus energy bill

If 2023 and 2024 provided the big bang when it came to changes in Minnesota’s energy policy and funding for renewable energy projects, then 2025 is looking to be more of a firecracker.

On the House Floor Wednesday, the omnibus bill that came out of the House Energy Finance and Policy Committee was referred to as a “lights-on bill” by its sponsor, Rep. Patty Acomb (DFL-Minnetonka).

HF2442 would fund the Public Utilities Commission and the Commerce Department’s work within the energy sphere — including some of those energy projects enacted in 2023 and 2024 — as well as such long-running programs as the Petroleum Tank Release Cleanup Fund and Clean Energy Resource Teams.

The floor debate didn’t have much juice. Members spoke for less than an hour before passing the bill 112-21 and sending it to the Senate.

Acomb portrays the bill as a successful defense of recently instituted policies and programs.

“While there may be some missed opportunities that we could have addressed this session, what we did accomplish in this bill is to protect the many advancements we’ve made over the last several years, making Minnesota a leader in the Midwest and nationally in terms of renewable energy production,” Acomb said.

Her committee co-chair, Rep. Chris Swedzinski (R-Ghent), also spoke of missed opportunities.

“This bill could have done a great many reforms that this state needs,” he said, citing his efforts to bring about net metering reform and lift the state’s moratorium on new nuclear energy projects. “This bill is not a perfect one. This bill may spend more than we’d like. But this bill does get us to conference committee.”

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For the 2026-27 biennium, the bill includes $30.69 million for the Commerce Department, $22.95 million for the Public Utilities Commission, $184,000 for the Department of Administration, and $600,000 from the Renewable Development Account, a special state-administered fund designed to support renewable energy projects.

Xcel Energy pays into the Renewable Development Account for being able to store nuclear waste at its Prairie Island and Monticello nuclear power plants, the size of payments based upon how many dry casks are currently in use.

The bill’s $600,000 outlay from the account for fiscal year 2026 is limited to $400,000 for the University of St. Thomas Center for Microgrid Research and $200,000 for administration of the Made in Minnesota solar energy production incentive program.

By comparison, the final conference committee report on energy that came out of the Legislature in 2023 (and was subsequently signed into law by Gov. Tim Walz) contained $110.8 million from the Renewable Development Account, while the 2024 conference committee report contained $15.4 million more.

Disappointment with the bill and grudging support were common themes in the floor debate.

“I’m a little bit disappointed in that we’re not deciding here to be a leader with small modular nuclear,” said Rep. Duane Quam (R-Byron), adding that he’d also like to see the state promote the development of hydrogen as a transportation source.

“I am deeply disappointed that it doesn’t include any RDA spending,” said Rep. Athena Hollins (DFL-St. Paul). “Since its inception, the RDA has directed over $200 million into projects that advance wind, solar, biomass, energy storage and other clean energy technologies right here in Minnesota. … As we face the urgency of climate change, funds like the RDA are not just helpful, but essential.”

Now it remains to be seen what the Senate passes in the way of an energy bill, and what provisions that body may push for inclusion in a final conference committee report. The Senate energy omnibus bill scheduled to be heard in the Senate Finance Committee Thursday contains $10 million more in Renewable Development Account appropriations than the House bill, as well as other grants for renewable energy projects.