The bill amends Minnesota Statutes to enhance regulations surrounding large water appropriation projects and data centers, focusing on energy management and environmental impact. It requires preapplication filings for large water appropriation projects that exceed certain consumption thresholds, ensuring early engagement with the relevant department. Additionally, the Public Utilities Commission is mandated to conduct environmental reviews for data centers that expand their average hourly load by 100 megawatts or more, while establishing new energy requirements for these facilities. Data centers are exempt from contributing to energy conservation plans but will incur a fee that will be deposited into an energy conservation account.

Moreover, the bill modifies the definition of a "large energy facility" to include backup generators for data centers and clarifies that their energy consumption will not count towards a utility's energy savings goals. It sets a requirement for data centers to generate or procure at least 65% of their electricity from carbon-free sources by December 31, 2030, increasing to 100% thereafter. Compliance plans must be submitted to the commission before operations begin, and annual reporting on energy consumption and waste reduction efforts is mandated. The bill also introduces a fee structure based on peak electricity demand and requires the Public Utilities Commission to develop a clean energy tariff by January 1, 2026, ensuring that data centers do not adversely affect renewable energy standards or system reliability.

Statutes affected:
Introduction: 103G.265, 103G.271, 116D.04, 216B.2402, 216B.241, 216B.2421