Minnesota State Capitol Building in Saint Paul
August 2025 Updates
BDC and its Partners selected for Statewide Thermal Energy Networks Study
Following a successful campaign by advocates that convinced the Minnesota legislature to fund a study to assess the feasibility of building Thermal Energy Networks (TENs) across the state, the Minnesota Department of Commerce selected a joint proposal from BDC, Buro Happold, Slipstream, and Thermal Energy Insights to complete the study. This study will deliver the Minnesota Department of Commerce a statewide mapping tool to assess the feasibility of new TENs projects, a site ranking matrix to rank TEN project sites under consideration, and a report on TENs policy barriers in Minnesota.
Minnesota Takes a Step Towards Removing Barriers for TENs
Over the past year, the Minnesota Public Utilities Commission (PUC) has been busy overseeing a TENs working group made up of advocates, community leaders, utilities, labor groups, and other stakeholders. This group worked together to identify statutory barriers and opportunities related to the development of TENS by Minnesota gas utilities in their territories. BDC was an active participant in this work group, which held its final meeting in June and then delivered its recommendations to PUC. These recommendations include:
- Amending definitions of TENs in statute to include a broad range of systems and aligning these definitions with the following principles 1) affordability 2) cost-effectiveness 3) carbon reductions 4) diverse carbon-free thermal sources.
- Amending definitions of utility and service to include thermal energy so utilities can better recover costs associated with developing TENs.
- Prioritizing the development of TENs in communities that have historically experienced environmental injustice and communities that possess TEN project success indicators.
- Amending utilities’ obligation to serve to account for TENs, and ensuring TEN projects include protections and transition periods that ensure the switch to a TEN does not significantly disrupt the lives of existing gas customers
The group also recommended that its members collaborate with the Minnesota legislature to determine how the state can develop additional pilot TEN projects beyond the existing pilot project cap.
The work of this group will be summarized in a forthcoming report by the PUC that will be submitted to the legislature by the end of 2025. BDC looks forward to working with its work group partners to see these recommendations implemented by the legislature and other stakeholders during the 2026 Minnesota legislative session.
May 2025 Updates
BDC Submits Legislative Recommendations to the Minnesota Public Utilities Commission’s Thermal Energy Network Work Group
On April 18th, BDC submitted a comprehensive set of legislative recommendations to the Minnesota Public Utilities Commission’s Thermal Energy Network (TENs) Work Group on how the legislature can amend existing statutes and develop new ones to advance TENs across the state. These recommendations tackled commonly discussed barriers to deployment, such as a utility’s obligation to serve, and more novel concepts like establishing a thermal marketplace and thermal commons to manage shared thermal resources for TENs when they start being deployed at scale.
Prospects for Passage of Building Decarbonization Bills by the Minnesota Legislature in 2024 Appear Dim
During a rocky legislative session marked by lawsuits, boycotts, and special elections, the Minnesota State House and Senate energy committees conducted hearings on several building decarbonization-related bills. Both committees eventually laid these bills over for possible inclusion in each body’s respective energy omnibus bill.
However, HF2442, the House’s energy omnibus bill, and SF 2393, the Senate’s energy omnibus bill, were both passed out of their respective committees with none of the building decarbonization bills laid over by these committees included in them. The Minnesota Legislature is also on a path to pass a “lights-on” budget this year that includes funding for few new initiatives of any kind. Both these facts make it highly likely that there will be no significant building decarbonization bills passed by the Minnesota legislature in 2024.
March 2025 Updates
Minnesota Legislature Introduces Bills That Would Redefine Electric Utilities, Require Energy Bill Disclosure, and Expand Home Energy Assistance
Following a tumultuous start to the 2025 legislative session, Minnesota’s House has reached a power-sharing agreement, and the bills have started to flow in. BDC is tracking all energy bills as they make their way to Senate and House Energy committees and working with advocates to identify opportunities to further decarbonization in the state through this legislation. So far, a few bills have stood out among the pack:
- SF 1436 (Matthews) – Changes the definition of electric utility to include only investor-owned utilities. Notably, this bill makes changes to MN statute 216B, which governs a utility’s obligation to serve.
- HF1138 (Elkins) – Requires disclosure of a property’s past 12 months of energy bills on sale of a property to the buyer. Authorizes utilities to comply with requests to fulfill this bill history from a buyer. This energy use disclosure has the potential to inform and increase weatherization and energy upgrades from homebuyers.
- SF 486 (Dibble) – Expands Minnesota’s Low-Income Home Energy Assistance Program (LIHEAP) into the summer months to protect against utility shutoffs and provide bill assistance for summer cooling. These are critical protections for customers as Minnesotans experience hotter summers and increasingly use electricity-powered heat pumps to cool their houses during the summer, as well as heat them during the winter.
Public Utilities Commission (PUC) To Fill All Its Commissioner Seats With Confirmation of Commissioner Audrey Partridge
The PUC oversees Minnesota’s regulated utilities and plays a crucial role in the decarbonization of the gas system across the state. The PUC is overseen by 5 Governor-appointed Commissioners who preside over issues presented to the regulatory body.
Following the end of Commissioner Valerie Means’ term, Governor Tim Walz appointed the Center for Energy and Environment’s Audrey Partridge to replace her on the Commission. Alongside current seated Commissioner Hwikwon Ham, Commissioner Partridge received a favorable vote and recommendation from the Minnesota Senate Energy Committee. Now, both Commissioners go to the Senate Floor where they are expected to be confirmed, filling the PUC’s bench ahead of crucial dockets like the Future of Gas.
February 2025 Updates
Public Utilities Commission To Take Up Line Extension Allowances (LEAs)
In a January Notice determining the scope and timeline of Minnesota’s long-delayed Future of Gas Docket, the Commission outlined clear next steps for the year and a plan to begin a stakeholder process via comment period and hearing to evaluate the role LEAs play in achieving gas system emissions reductions and opportunities for policy changes to align greenhouse gas (GHG) reduction goals and the policy. The process begins with a thorough comment period on LEAs in March 2025, with the Commission aiming to evaluate changes to gas rates with the same GHG reduction goal lens.
Minnesota House Threatens Stall Till March
Following a tie between House Democrats and Republicans in the November election, a flurry of contested races, lawsuits, and Minnesota State Supreme Court decisions has led to a stalemate of power in the Minnesota House. Democrats have refused to show up to the State Capitol to ensure Republicans cannot begin the legislative session in the majority until a special election is conducted to fill a newly vacant seat after courts ruled Curtis Johnson (40B) did not meet residency requirements to run in his district. With prospects for a power-sharing agreement between Democrats and Republicans unlikely, the hope for any significant legislative action remains dim until March, when a newly elected Democrat can be seated from House District 40B.
January 2025 Updates
Thermal Energy Networks Take Center Stage in Minnesota
Minnesota has taken the next step in introducing thermal energy networks (TENs) across its energy system by convening the largest and most diverse stakeholder group on the topic in the State’s history. The group first met in late 2024 and will continue meeting through 2025 to develop a report with recommendations for the Minnesota state legislature on policy changes Minnesota should make to accelerate the deployment of TENs by the state’s regulated gas utilities. BDC is supporting the Minnesota Public Utilities Commission in organizing this TENs work group and looks forward to supporting the group as it develops its TENs report for the Minnesota legislature.