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HF845 (Legislative Session 94 (2025-2026))

Net metering; various governing provisions modified.

Related bill: SF1142

AI Generated Summary

Summary of HF 845 (First Engrossment) – Minnesota House of Representatives

HF 845 is a bill related to energy policy and net metering in Minnesota. It amends provisions in Minnesota Statutes 2024, section 216B.164, specifically subdivisions 2a and 3. The bill primarily focuses on updating definitions and modifying the rules for net metering and compensation for small energy facilities.

Key Provisions:

  1. Definitions Updates (Subd. 2a):

    • New or revised definitions include aggregated meter, capacity, cogeneration, contiguous property, customer, designated meter, distributed generation, high-efficiency distributed generation, net-metered facility, renewable energy, and standby charge.
    • These definitions clarify terms related to distributed energy generation and metering.

  2. Modifications to Compensation and Billing for Net Metering (Subd. 3):

    • For small facilities (under 40 kW) connected to cooperative electric associations or municipal utilities:
      • Customers are billed based on net energy use.
      • Cooperatives/municipal utilities may charge an additional fee to recover fixed costs.
      • Compensation for excess energy fed into the grid is at a kilowatt-hour rate determined in the bill.
    • For small facilities (under 1,000 kW) connected to public utilities:
      • Customers are billed based on net energy use.
      • Compensation rates differ based on the facility’s size (above or below 40 kW).
    • Rate setting considerations include ensuring non-discriminatory utility costs and using avoided-cost calculations per federal regulations.
    • Customers with facilities under 40 kW in cooperative or municipal utility areas may:
      • Opt for kilowatt-hour energy bill credits that roll forward.
      • Credits unused by the end of the calendar year are canceled with no cash compensation.
    • New compensation structure applies only to facilities beginning operation after June 30, 2025.
      • Facilities operating before this date remain subject to existing 2024 statutes.

Impact:

  • This bill modernizes Minnesota’s net metering policies by:
    • Introducing new definitions to reflect current industry practices.
    • Adjusting net metering rules to better distribute costs between customers and utilities.
    • Allowing more flexible compensation options for small-scale clean energy producers.
    • Setting a transition period, with older facilities retaining previous compensation structures.

This bill is intended to ensure fair utility cost distribution while supporting distributed generation and renewable energy adoption in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toEnergy Finance and Policy
February 16, 2025HouseFloorActionIntroduction and first reading, referred toEnergy Finance and Policy
February 18, 2025HouseFloorActionAuthors added
February 18, 2025HouseFloorActionAuthors added
February 23, 2025HouseFloorActionCommittee report, to adopt as amended
February 23, 2025HouseFloorActionAuthor added
February 23, 2025HouseFloorActionCommittee report, to adopt as amended
February 23, 2025HouseFloorActionSecond reading
February 23, 2025HouseFloorActionSecond reading
February 23, 2025HouseFloorActionAuthor added
March 10, 2025HouseFloorActionHouse rule 1.21, placed on Calendar for the Day
March 12, 2025HouseFloorActionMotion to lay on the table
March 12, 2025HouseFloorActionMotion prevailed
March 19, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded definition of 'aggregated meter', 'customer', and 'distributed generation'."
      ],
      "removed": [],
      "summary": "Modifications to definitions related to net metering.",
      "modified": [
        "Updates to various definitions regarding energy generation and metering practices."
      ]
    },
    "citation": "216B.164",
    "subdivision": "subdivision 2a"
  },
  {
    "analysis": {
      "added": [
        "Introduced more flexible compensation options for customers with net metered facilities."
      ],
      "removed": [],
      "summary": "Changes to how net inputs are compensated for small qualifying facilities.",
      "modified": [
        "Revised compensation rate determination methodology based on cost studies."
      ]
    },
    "citation": "216B.164",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References high-efficiency distributed generation efficiency threshold.",
      "modified": [
        "Clarified calculation method for distributed energy facility efficiency."
      ]
    },
    "citation": "272.02",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to the definition of renewable energy.",
      "modified": [
        "Ensures alignment with existing definitions of renewable energy."
      ]
    },
    "citation": "216B.2411",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Sets compensation rates based on avoided costs.",
      "modified": [
        "Considers federal regulatory factors in pricing net input."
      ]
    },
    "citation": "18 C.F.R. 292.101",
    "subdivision": "paragraph b6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Consideration for rate setting of net input compensation.",
      "modified": [
        "Aligns local rate setting with federal regulatory guidelines."
      ]
    },
    "citation": "18 C.F.R. 292.304",
    "subdivision": ""
  }
]

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