This bill seeks to revise environmental and energy regulations for data centers in Minnesota, introducing a clean energy and capacity tariff, adjusting sales and use tax exemptions, and implementing a new fee structure. It defines a "data center" as a facility with a load of 100 megawatts or more dedicated to digital data management. The bill mandates coordination with the Minnesota Business First Stop Program for permitting inquiries and requires data centers with significant water consumption to undergo evaluations and adhere to specific permit conditions focused on public health and water conservation. Additionally, it modifies solar energy standards to include large-scale data centers, promoting their contribution to renewable energy goals.

The legislation establishes new definitions and exemptions for large customer facilities and qualified large-scale data centers, which will be subject to a fee based on peak demand. It exempts these centers from contributing to energy conservation plans if they pay the required fee and outlines criteria for qualification, including construction costs and square footage. The bill also creates an energy and conservation account funded by the collected fees, directing the commissioner to use these funds for energy conservation, particularly for low-income programs. Furthermore, it mandates compliance with sustainable design standards within three years and includes qualified large-scale data centers in tax exemption eligibility for specific equipment and software, with effective dates set for sales and purchases after June 30, 2025.

Statutes affected:
Introduction: 103G.265, 103G.271, 216B.02, 216B.1691, 216B.2402, 216B.241, 297A.68, 297A.75