This bill (S.F. No. 2040) proposes an appropriation of $500,000 for fiscal year 2026 from Minnesota’s general fund to the Pollution Control Agency to conduct a report on the viability of small modular nuclear reactors (SMRs) in the state.

The report, due by January 15, 2026, must be developed in consultation with various state agencies, including the Environmental Quality Board, Public Utilities Commission, Department of Natural Resources, Department of Health, and the Critical Materials Recovery Advisory Task Force. The report will be submitted to legislative committees overseeing energy, environment, natural resources, health, and capital investment.

The report must cover: 1. Environmental Considerations – Recommendations for monitoring and protection, including water quality standards, waste storage, water usage requirements, environmental justice factors, regulatory integration, and ecosystem protection. 2. Infrastructure and Operational Requirements – Considerations such as grid integration, regulatory adaptations, emergency response infrastructure, public health monitoring, long-term health surveillance, and workforce development needs. 3. Economic Viability – An assessment of power purchase agreements, rate impacts, economic effects on utilities and communities, revenue projections, and community benefit models. 4. Community Engagement and Benefits – Exploration of cooperative ownership structures, revenue-sharing mechanisms, protections for local businesses, and rural development opportunities.

The report must provide specific and actionable legislative recommendations for implementing the required strategies. It may not suggest further studies or reports.