HF3296 (Legislative Session 94 (2025-2026))

Data centers excluded from gross annual retail energy sales for energy conservation and optimization purposes.

Related bill: SF3444

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify existing energy conservation and optimization regulations in Minnesota by changing how gross annual retail energy sales are calculated, specifically with regard to data centers.

Main Provisions

  • Definition of Data Center: The bill defines a data center as a freestanding structure designed primarily for housing electronic equipment that processes, stores, and transmits digital information.

  • Exclusion from Energy Sales Calculations: The bill seeks to exclude energy sales to data centers, particularly those that meet a certain electrical demand threshold, from the calculation of a utility's gross annual retail energy sales. This would impact how energy conservation targets are set and met.

  • Criteria for Exclusion:

    • Data centers or data mining facilities can be excluded if they provide a utility with a signed letter verifying their status as such.
    • They must also impose a peak electrical demand equal to or greater than 40% of the utility's system's peak demand.
  • Electric Vehicles: The bill specifies that, before December 31, 2032, electric sales associated with electric vehicle charging do not count towards gross annual sales. After this date, these sales will be included.

Significant Changes to Existing Law

  • Exempts data centers from the calculation of gross annual retail energy sales, which could affect the requirements for utilities to engage in energy conservation and optimization efforts.
  • Adjusts the methodology for including electric vehicle charging sales in these calculations after a specified date.

Relevant Terms

  • Data center
  • Gross annual retail energy sales
  • Energy conservation
  • Electric vehicle charging
  • Peak electrical demand
  • Utility exemptions

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 05, 2025HouseFloorActionIntroduction and first reading, referred toEnergy Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section outlines circumstances under which large customer facilities or commercial facilities can be exempted from certain energy sales requirements.",
      "modified": []
    },
    "citation": "216B.241",
    "subdivision": "subdivision 1a"
  }
]

Progress through the legislative process

17%
In Committee