HF4559 (Legislative Session 94 (2025-2026))
Commissioner of commerce's ability to enter into energy research partnerships or compacts expanded, energy security planning provided, and various energy-related grant programs extended and modified.
Related bill: SF4720
AI Generated Summary
Purpose
- Expand the commissioner of commerce’s authority to pursue energy-related work by authorizing more partnerships, research collaborations, and compacts with other states, the federal government, private entities, and non-governmental organizations.
- Strengthen energy security planning for Minnesota, including planning, preparedness, and response frameworks.
- Extend or modify various energy-related grant programs and update related statutes to support these goals.
Main provisions
Powers for the commissioner of commerce
- can apply for, receive, and spend money from federal, state, local, regional, and private sources; accept grants and aid; contract for professional services when work cannot be done in-house; and enter into interstate or intrastate partnerships or compacts for energy research and planning.
- can distribute informational materials to the public at no cost.
- can enter into contracts with federal, state, regional, local, and university entities (including the University of Minnesota) without regard to competitive bidding rules.
- must collect information on conservation and other energy programs from various entities (other agencies, utilities, municipal power agencies, private organizations) and ensure this information is shared with other agencies and the public.
- may require information from program operators by rule and must assess whether programs meet needs, address low-income users, avoid duplication, improve or eliminate ineffective programs, and encourage voluntary efforts through incentives.
- must annually report to the legislature (by January 15) on projected federal funding for the next fiscal year, including grant money and settlements related to federal petroleum-pricing regulations; must estimate the funding needed to sustain energy conservation and related programs, with emphasis on low-income households, and recommend state appropriations to cover any gap between federal funds projected and program needs.
Energy planning and policy direction
- states the Legislature’s intent to promote energy efficiency, renewable energy, and a secure, resilient energy system.
- establishes a public interest in maintaining an energy security plan that covers all energy sources, a statewide risk assessment, all-hazards threat assessment, cross-sector critical infrastructure interdependencies, risk mitigation strategies, and multi-state/regional coordination.
- requires planning to be carried out within a framework of planning, preparedness, and response, in consultation with state agencies, local governments, energy providers, community organizations, and others.
- directs ongoing monitoring and evaluation of progress toward greater reliance on cost-effective energy efficiency and renewable energy, with a goal of reducing dependence on fossil fuels, lowering fuel imports, creating energy-related jobs, reducing pollution, and improving Minnesota’s economic competitiveness.
Electric school bus program account
- creates a separate electric school bus program account in the state’s special revenue fund.
- authorizes crediting of appropriations, transfers, and earnings (including interest and dividends) to the account.
- allows money in the account to carry over from year to year and remain available beyond the end of the fiscal year.
- specifies that the account will be managed by the commissioner and includes a sunset provision with an end date (June 30, 2027/2028, as shown in the bill) for the account.
Application deadline adjustments
- revises the application deadline under the relevant section to extend the submission deadline to June 30, 2028 (instead of June 30, 2026).
Significant changes to existing law
- Broadens the commissioner of commerce’s authority to engage in energy research partnerships and compacts with other states, the federal government, private entities, and NGOs, and to contract for services without standard competitive bidding requirements for certain agreements.
- formalizes the collection and sharing of energy program data across multiple agencies and private entities to inform policy decisions, program design, and potential legislative changes.
- codifies a comprehensive energy security planning framework, including risk assessments and cross-sector infrastructure interdependencies, with an emphasis on efficiency, renewables, and reducing fossil fuel use.
- creates a dedicated funding mechanism (electric school bus program account) to support electrification of school transportation, with funding that carries forward and is managed by the commissioner.
- updates deadlines for program applications to 2028, effectively extending current program windows.
Administrative and reporting details
- Requires annual reporting to the Legislature on federal funding projections and anticipated needs for energy programs, with a focus on protecting low-income energy users.
- Encourages alignment of energy policy with environmental protection and climate goals, economic growth, and energy security objectives.
Relevant Terms - commissioner of commerce - energy research partnerships - compacts - interstate/intrastate partnerships - energy security planning - all-hazards threat assessment - statewide risk assessment - cross-sector critical infrastructure interdependencies - energy efficiency - renewable energy - fossil fuels - low-income energy users - energy-related grants - information collection and sharing - public information - competitive bidding exemptions (ch. 16A and 16C) - electric school bus program account - special revenue fund - earnings and carryover - funding projections - federal petroleum-pricing regulations - Department/Agency coordination (state agencies, local government, utilities, universities)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | House | Action | Introduction and first reading, referred to | Energy Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Authority to apply for, receive, and spend money from federal, municipal, county, regional, and private sources.",
"Authority to contract for professional services when work cannot be satisfactorily performed by department staff or another state agency.",
"Authority to enter into interstate or intrastate partnerships or compacts for research and planning with other states, the federal government, private entities, or nongovernmental organizations.",
"Authority to distribute informational material at no cost to the public.",
"Authority to enter into contracts for the performance of the commissioner's duties with federal, state, regional, metropolitan, local, and other agencies or units of government and educational institutions, including the University of Minnesota, without regard to the competitive bidding requirements of chapters 16A and 16C.",
"Requirement to collect information on conservation and other energy-related programs carried on by other agencies, public utilities, cooperative electric associations, municipal power agencies, and other entities; make information available; and recommend legislative changes to ensure adequate expenditures, address low-income needs, avoid duplication, improve ineffective programs, and encourage voluntary efforts."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 216C.02, subdivision 1 to expand the Energy Commissioner’s powers, including ability to receive and spend funds from multiple sources, contract for professional services, enter intergovernmental partnerships or compacts, distribute information, and contract with various agencies and institutions (including the University of Minnesota) without regard to bidding requirements; and to collect information on energy programs and report to the legislature.",
"modified": [
"Substantially broadens the existing powers and responsibilities of the commissioner regarding funding, contracting, intergovernmental agreements, information dissemination, and reporting."
]
},
"citation": "216C.02",
"subdivision": "Subdivision 1"
},
{
"analysis": {
"added": [
"Finds and declares continued growth in energy demand and the state’s interest in increased efficiency, renewable energy resources, a secure and resilient energy system, and an effective energy forecasting, planning, and education program.",
"Commitment to energy security planning, including a statewide risk assessment and cross-sector coordination."
],
"removed": [],
"summary": "This bill adds and elevates energy planning and related findings and declarations to guide energy policy, planning, and education, outlining the state’s interests in efficiency, renewable resources, secure infrastructure, forecasting, and cross-sector coordination.",
"modified": [
"Introduces a comprehensive set of findings and declarations to justify ongoing energy planning and program coordination."
]
},
"citation": "216C.05",
"subdivision": "Subdivision 1"
},
{
"analysis": {
"added": [
"Creation of the electric school bus program account as a separate special revenue fund account.",
"Credit of appropriations, transfers, and earnings to the account; end-of-fiscal-year balances to remain in the account (not canceled to the general fund) through specified dates.",
"Management responsibility assigned to the commissioner."
],
"removed": [],
"summary": "Establishes an electric school bus program account as a separate account in the state treasury's special revenue fund, with credited earnings, and imposes end-of-year balance rules and management responsibilities.",
"modified": [
"Creates/recodes a dedicated account for electric school bus program funding with specified fiscal controls."
]
},
"citation": "216C.374",
"subdivision": "Subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends the application deadline under the section related to the electric school bus program.",
"modified": [
"Extends the application deadline to June 30, 2028 (from June 30, 2026)."
]
},
"citation": "216C.377",
"subdivision": "Subdivision 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends subdivision 13 of 216C.377; specifics not shown in the provided text.",
"modified": [
"Details of subdivision 13 amendment are not provided in the excerpt."
]
},
"citation": "216C.377",
"subdivision": "Subdivision 13"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 216C.391, subdivision 6 (text not shown in excerpt).",
"modified": [
"Details of subdivision 6 amendment are not provided in the excerpt."
]
},
"citation": "216C.391",
"subdivision": "Subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 216C.391, subdivision 7 (text not shown in excerpt).",
"modified": [
"Details of subdivision 7 amendment are not provided in the excerpt."
]
},
"citation": "216C.391",
"subdivision": "Subdivision 7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 216C.46, subdivision 3 (text not shown in excerpt).",
"modified": [
"Details of subdivision 3 amendment are not provided in the excerpt."
]
},
"citation": "216C.46",
"subdivision": "Subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references competitive bidding requirements of chapters 16A and 16C in relation to contracting for the commissioner’s duties with the University of Minnesota and other entities.",
"modified": [
"Bypassing or modifying competitive bidding requirements of chapters 16A and 16C for certain contracts."
]
},
"citation": "16A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references competitive bidding requirements of chapters 16A and 16C in relation to contracting for the commissioner’s duties with the University of Minnesota and other entities.",
"modified": [
"Bypassing or modifying competitive bidding requirements of chapters 16A and 16C for certain contracts."
]
},
"citation": "16C",
"subdivision": ""
}
]Progress through the legislative process
In Committee