SF 4503 Minnesota Senate · 2025-2026 Regular Session

Thermal energy network plans establishment and Thermal energy networks designation as public improvements and waterworks

This bill designates thermal energy networks as public improvements and waterworks, allowing Minnesota municipalities to build, maintain, and operate these systems as part of their infrastructure responsibilities. The legislation amends state statutes to explicitly include thermal energy networks in the list of authorized municipal improvements, placing them alongside existing utilities like waterworks and district heating systems. Municipalities will gain the authority to acquire, construct, and maintain these networks, enabling them to develop district heating infrastructure for residential and commercial areas. The bill also updates legal definitions to formally recognize thermal energy networks within the state's waterworks classification.

Issues: ✓ Energy ✓ Environment

Bill status died 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 17, 2026 Last action May 12, 2026

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What changed between versions

Introduction → 1st Engrossment · 5 edits · May 8, 2026

MODERATE

This bill was updated from its introduction to its first engrossment version, adding significant new provisions to regulate thermal energy networks (TENs) in Minnesota. The changes include establishing specific consumer protections, defining how utilities can recover costs for these networks, and creating new requirements for low-income affordability programs. Additionally, the bill now includes a specific appropriation of $40,000 for the Public Utilities Commission to oversee these services.

Scope change

The bill's scope expanded from a general designation of thermal energy networks as public improvements to a comprehensive regulatory framework that includes cost recovery mechanisms, consumer protection standards, and mandatory affordability programs for low-income households.

REQUIREMENT

New requirements were added for utilities to file affordability programs specifically for low-income customers using thermal energy networks, ensuring these programs lower income burden and coordinate with existing assistance resources.

Utilities must prioritize siting thermal energy networks in areas where residents have expressed interest or where similar natural gas projects have succeeded, rather than having unrestricted discretion in location.

DEFINITION

A new section was added to formally define 'thermal energy network' and establish rules for cost recovery, requiring utilities to recover costs through general rate cases or specific riders before December 31, 2036.

FISCAL

A specific appropriation of $40,000 from the general fund was added for fiscal year 2027 to support the Public Utilities Commission in regulating thermal energy network services.

TIMELINE

The effective date for the new thermal energy network provisions was set to the day following final enactment, making the regulatory changes immediate upon passage.

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Full legislative history

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Key actions

Committee

May 7, 2026

Upper · Passed

Senate Concurrent Resolution 6 Suspended adopt previous committee report

upper

May 7, 2026

Committee

Pursuant to Senate Concurrent Resolution No. 6, referred to Rules and Administration

upper

May 7, 2026

Upper · Passed

Comm report: To pass as amended

upper

Mar 17, 2026

Committee

Referred to State and Local Government

upper

Mar 17, 2026

Introduced

Introduction and first reading

upper

1 primary · 2 co-sponsors