St. Paul, MN—The Senate Energy and Utilities Policy and Finance Committee passed its budget bill out of the Finance Committee, authored by Senator David Senjem (R-Rochester). Senate File 2075 focuses on measured, thoughtful changes to Minnesota energy and telecom policy. This bill contains comprehensive funding for the two-year energy budget and implements renewable development account spending.

 “Polls confirm that Minnesota strongly favors moving towards a clean energy future, provided it’s affordable and reliable,” Senator David Senjem (R-Rochester), Chair of the Energy and Utilities Finance and Policy Committee, said. “This past year alone has shown how vital it is to facilitate innovation in our state energy production. It is imperative that we make improvements consistent with the opinions of our citizens and the direction being taken to combat climate change.”

This bipartisan legislation allocates $8 million for the Solar Rewards Program which incentivizes utilities which use solar systems, as well as modifying utility reporting to achieve the new solar standard by July, 1, 2021. This bill establishes a Solar for Schools Program to provide grants to aid in the installation of solar energy systems on or adjacent to school buildings. This would allow schools to use the solar energy system as a teaching tool that can be integrated into the school’s curriculum.

The key theme for this legislation is updating Minnesota’s renewable energy policy. Notably, this legislation also establishes a state building energy conservation improvement account. It appropriates money to make loans to implement energy conservation and energy efficiency improvements in state buildings. Additionally, this bill includes a provision to allow Xcel Energy to propose a new power purchase agreement with St. Paul District Energy. The bill establishes conditions that govern the new power purchase agreement between Xcel and District Energy of St. Paul.

The bill will also aid in expanding Minnesota’s broadband market to provide robust broadband to all corners of the state and modernize the crucial telecom market.

“More and more Minnesota’s energy future will be linked to their economic future. Minnesotan’s deserve the best and most cost effective options moving forward and shifting now can only help us in the long run. We should be doing everything we can to ensure Minnesota is leading the nation in energy policy.”

A number of other key provisions are included in the legislation:

• Establishes a program to provide financial incentives for the production of wood pellets at an eligible production facility located in Minnesota

• Requires a utility that has scheduled the retirement of an electric generating facility in Minnesota to include in the utility’s resource plan filing a narrative identifying and describing the utility’s plan and efforts made to date to work with the utility’s workers represented by an exclusive representative.

• Establishes a Clean Energy Career Training Pilot Project

• Allows a nonprofit organization implementing energy efficiency programs and conducting efficient technology research in Minnesota to file a proposal for a program to accelerate and reduce the cost of emerging and innovative efficient technologies

• Establishes an ammonia production pilot research and demonstration project