Energy Finance and Policy

HF 3298 establishes a reimbursement program for owners of underground petroleum storage tank systems to replace outdated pressurized single-walled steel piping. This directly affects property owners and operators of gas stations or similar facilities with these specific piping systems. The bill amends Minnesota Statutes to add a new provision (115C.09, subdivision 3l) allowing reimbursement from the existing petroleum tank release cleanup fund for the cost of replacing this piping. The program covers eligible piping between storage tanks and dispensers, excluding the tanks themselves or other site improvements. This creates a concrete financial mechanism to address a known safety and environmental risk associated with this aging infrastructure.

This bill repeals a previous exemption that allowed large data centers to avoid paying sales and use taxes on their equipment and software. It directly affects businesses building or operating data centers in Minnesota by requiring them to pay standard taxes on purchases like servers, computers, and related materials. The legislation defines a "qualified large-scale data center" as a facility with at least 25,000 square feet and a total investment of $250 million in construction and technology over a six-year period. Additionally, the bill removes a special reduction in state funding for special education that was previously tied to the data center tax exemption. These changes take effect on July 1, 2026, ensuring that data center projects contribute to state revenue like other commercial developments.

This bill prohibits the state Public Utilities Commission from issuing route permits for carbon dioxide pipelines that are longer than 1,000 feet or that cross, go under, or pass through public waters. It directly affects companies seeking to build or operate these pipelines in Minnesota by requiring them to obtain a permit for any project, while simultaneously banning applications for exemptions from standard route selection procedures. The legislation defines a carbon dioxide pipeline as any line transporting the substance in liquid, gaseous, or supercritical states within the state and sets these specific restrictions into law immediately upon enactment.

This bill directs state funds to conduct a study on building nuclear power plants in Minnesota, focusing on factors like technology, regulations, and community impact. The study will examine small modular reactors, waste management, economic benefits, and safety concerns, and must be completed by June 2027. The results will be shared with state lawmakers to inform future energy policy decisions.

This bill clarifies how the Minnesota Climate Innovation Finance Authority can use funds received through gifts or grants related to its activities. It directs that any money given to the state for the authority's purposes must be deposited into the specific account established under subdivision 11 of the relevant statute. The legislation also updates the authority's general powers to include accepting gifts, grants, or property interests on behalf of the state for climate-related initiatives. This change ensures proper accounting and management of external funding sources supporting Minnesota's climate innovation efforts.