HF4153 (Legislative Session 94 (2025-2026))
Criteria for preapplication evaluations of water appropriations for data centers modified, data centers' electricity sales exempted in calculating a utility's solar energy standard, and data centers exempted from paying sales tax on electricity purchases.
Related bill: SF4681
AI Generated Summary
Purpose
- Establish a formal preapplication evaluation process for large data centers to assess how their water use could affect water availability and quality.
Main Provisions
- Scope and trigger:
- Applies to a data center as defined in Minnesota Statutes, with a proposed net increase in consumptive water use exceeding 100,000,000 gallons per year and that requires a permit amendment or a new individual permit.
- Preapplication information:
- The agency may request information from the data center to help assess water needs, including:
- Project description
- Estimated water use rates and volumes for the maximum day, maximum month, and average year
- Anticipated water source
- Water quality or temperature requirements
- The agency may request additional information as needed.
- Agency process and timing:
- The department will evaluate the information and respond in writing (which can be sent electronically) describing potential water availability constraints at each proposed site.
- Interagency collaboration:
- When assessing the impact on water quality and quantity, the department may consult with the commissioners of health, agriculture, the Pollution Control Agency, and other state agencies.
- Privacy and process boundaries:
- Communications or information exchanged under this subdivision are nonpublic data.
- This preapplication process does not replace or override other environmental reviews or permit processes required under federal, state, or local law.
- Definition of net increase:
- Net increase in consumptive use means the estimated net increase in annual water consumption after subtracting documented reductions from other entities that occurred previously or are scheduled to occur within a specified window.
- Exemption for certain large-scale data centers:
- The preapplication requirements do not apply to a qualified large-scale data center that has filed an application for permit/approval by January 1, 2025, or is located in an eligible community as defined by statute.
Significant Changes to Existing Law
- Adds a mandatory preapplication evaluation step for large data centers with substantial planned increases in water use, including formal written responses about site-specific water availability constraints.
- Introduces a data privacy protection (nonpublic data) for communications and information shared during the preapplication process.
- Establishes an interagency consultation mechanism to assess water quality and quantity impacts.
- Defines net increase in consumptive use for the purpose of triggering the preapplication process and clarifies exclusions for certain large-scale facilities.
Practical Implications
- Large data centers planning significant increases in water use will face an early information-gathering step with state agencies.
- The process aims to identify water-related constraints before new permits or amendments are finalized.
- Privacy protections limit public access to communications and information exchanged during this step.
- Some existing large-scale projects that meet criteria or are in eligible locations may be exempt from this preapplication requirement.
Applicable Terminology and Concepts
- Data center
- Preapplication evaluation
- Water appropriation
- Consumptive use
- Permit amendment
- New individual permit
- Water source
- Water quality
- Maximum day / maximum month / average year (water use rates)
- Nonpublic data
- Health, Agriculture, Pollution Control Agency (state agencies)
- Environment review
- Net increase in consumptive use
- Qualified large-scale data center
- 297A.68 subdivision 42
- 116J.55 subdivision 1
Relationship to Other Provisions
- The bill indicates there are broader amendments related to data centers (exemptions or other adjustments to fees, taxes, and solar energy standards), but the specific provisions are not detailed in the excerpt provided.
Relevant Terms - data center - preapplication evaluation - water appropriation - consumptive use - net increase in consumptive use - permit amendment - new individual permit - water source - water quality - maximum day - maximum month - average year - nonpublic data - Health - Agriculture - Pollution Control Agency - environment review - qualified large-scale data center - 297A.68 subdivision 42 - 116J.55 subdivision 1
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2026 | House | Action | Introduction and first reading, referred to | Energy Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Department may request preapplication information from a data center (project description, water use rates/volumes, estimated sources, water quality/temperature requirements).",
"Data center submissions may include seven enumerated items related to project description, water use rates/volumes, source, and water quality/temperature requirements.",
"Written response from the department describing potential water availability constraints at each project site (may be electronically transmitted).",
"Confidentiality: communications/information exchanged under this subdivision are nonpublic data as defined in section 13.02, subdivision 9.",
"Interagency consultation with the commissioners of health, agriculture, the Pollution Control Agency, and other state agencies in assessing water impact.",
"Nonpreclusion language: discussions/filings/evaluations under this subdivision do not preclude or supplant environmental review, preliminary well-construction approval, appropriation, permit review, or other requirements under federal, state, or local law.",
"Definition of net increase in consumptive use includes subtracting documented reductions in consumption from the same water source by others within a look-back window and/or scheduled to occur within a future window.",
"Qualifying large-scale data centers that filed an application on or before January 1, 2025 are exempt from this subdivision."
],
"removed": [],
"summary": "Modifies the preapplication evaluation process for water use by data centers with large consumptive-use increases; establishes process elements, data requests, confidentiality, interagency consultation, and an exception for certain large-scale data centers.",
"modified": [
"Amends Subd.5 to establish a data-center-specific preapplication evaluation framework with thresholds and information requirements."
]
},
"citation": "103G.265",
"subdivision": "Subd.5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference indicating data center is defined in 216B.02, subdivision 11; the bill relies on this existing definition.",
"modified": []
},
"citation": "216B.02",
"subdivision": "Subd.11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends 216B.02, subdivision 12 as part of the data center provisions; specific changes not shown in the excerpt.",
"modified": []
},
"citation": "216B.02",
"subdivision": "Subd.12"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amendment to 216B.1623 included in the bill; the exact language of the change is not presented in the provided text.",
"modified": []
},
"citation": "216B.1623",
"subdivision": ""
},
{
"analysis": {
"added": [
"Exemption of certain data centers from including electricity sales in calculating a utility's solar energy standard."
],
"removed": [],
"summary": "Incorporates data-center-related modifications to the solar energy standard framework; specifically related to exemptions affecting how data centers are treated in solar standard calculations.",
"modified": []
},
"citation": "216B.1691",
"subdivision": "Subd.2f"
},
{
"analysis": {
"added": [
"Exemption of certain data centers from paying a fee."
],
"removed": [],
"summary": "Amends provisions relating to fees; the excerpt notes a data-center-related exemption from paying a fee, but the exact language is not shown.",
"modified": []
},
"citation": "216B.72",
"subdivision": ""
},
{
"analysis": {
"added": [
"Provisions affecting data centers in relation to sales tax on electricity purchases; exemptions or special treatment discussed in the bill."
],
"removed": [],
"summary": "References to data-center related provisions within the sales tax framework; the exact language is not provided in the excerpt.",
"modified": []
},
"citation": "297A.68",
"subdivision": "42.1.9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota's Government Data Practices Act for nonpublic data status used in the bill.",
"modified": []
},
"citation": "13.02",
"subdivision": "Subd.9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to the definition of 'eligible community' used in the data-center-related exemptions; the exact language is not shown in the excerpt.",
"modified": []
},
"citation": "116J.55",
"subdivision": "Subd.1"
}
]Progress through the legislative process
In Committee