Purpose of the Bill

The bill addresses energy and water use regulations for large projects in Minnesota, specifically targeting data centers and large water appropriation projects. It aims to streamline the permitting process, adjust energy consumption metrics, and establish new requirements to promote energy conservation and efficiency.

Main Provisions

1. Preapplication Filings for Water Projects:

   • Requires potential applicants for large water appropriation projects to discuss their plans with the relevant department early in the development process.
   • Applies to projects proposing to use over 100 million gallons of water annually or 250,000 gallons daily.

2. Permit Application Requirements:

   • Enhances application processes by requiring detailed information about the project’s water use, potential locations, and sources.

3. Environmental Review for Data Centers:

   • Specifies the level of environmental review that data centers must undergo.

4. Energy Consumption and Savings Goals:

   • Removes data centers’ energy consumption from the calculation of a utility’s energy savings goals.
   • Exempts data centers from making financial contributions to energy conservation and optimization plans.

5. Financial and Energy Conservation Regulations:

   • Establishes specific energy requirements and imposes fees on data centers.
   • Requires the Public Utilities Commission to create new tariffs for data centers.

6. Revenue Use:

   • Stipulates that fee revenues be deposited into an account designated for energy conservation efforts.

7. Coordination and Water Availability:

   • Mandates inter-agency consultations to assess a project's impact on water resources.
   • Ensures nonpublic status for communications between potential applicants and government agencies until project submission or abandonment.

Significant Changes to Existing Law

• Introduces preapplication evaluation for large water appropriation projects.
• Redefines what constitutes a large energy facility, specifically articulating requirements and exemptions for data centers.
• Amends the calculation method of utilities' energy savings by excluding data center energy consumption.
• Establishes a new regulatory framework for data centers concerning energy tariffs and conservation fees.

Relevant Terms

large water appropriation, data centers, preapplication, water use permit, energy savings goals, energy conservation, Public Utilities Commission, environmental review, tariffs