Minnesota Senate Passes Bipartisan Energy Budget, Paving Way Toward 100% Clean Energy by 2040

Minnesota Senate Passes Bipartisan Energy Budget, Paving Way Toward 100% Clean Energy by 2040

ST. PAUL, MN (May 12, 2025) – In a decisive step toward a cleaner energy future, the Minnesota Senate has passed a sweeping bipartisan energy budget and policy package led by Senator Nick Frentz (DFL–North Mankato). The legislation, which passed on a 36–31 bipartisan vote, reinforces the state's commitment to achieving 100% carbon-free electricity by 2040, while investing in infrastructure, innovation, and grid reliability.

As chair of the Senate Energy, Utilities, Environment, and Climate Committee, Frentz played a pivotal role in crafting the legislation. The comprehensive package not only addresses Minnesota’s long-term environmental goals but also tackles affordability and the practical demands of energy transition.

Key Provisions of the Energy Package:

Commitment to 100% Clean Energy:
The bill affirms Minnesota’s statutory goal of reaching 100% carbon-free electricity by 2040. It funds key infrastructure projects and planning efforts necessary to support this transformation.

Grid Modernization and Reliability:
To ensure Minnesotans can depend on a stable, clean energy supply, the legislation invests heavily in upgrading the state's transmission systems. These upgrades are essential for efficiently delivering renewable energy across the state as demand continues to grow.

Phasing Out Community Solar Gardens (CSG):
The bill initiates the phase-out of the Community Solar Garden program by 2030. Senator Frentz emphasized that while Minnesota remains committed to solar energy, shifting to more cost-effective solar deployment strategies is in the best interest of both ratepayers and the grid.

Strategic Investments in Clean Energy Innovation:
The package directs $20 million from the Renewable Development Account (RDA) to a range of innovative projects that support Minnesota’s clean energy and climate goals, including:

• $4 million for an anaerobic digester in Shakopee to convert food waste into renewable energy
• $2.2 million for a geothermal system at the Como Zoo in St. Paul, advancing the city's carbon neutrality objectives
• $5 million for green ammonia research at the University of Minnesota Morris, targeting decarbonization in agriculture and heavy industry
• $2 million for a green hydrogen project in St. Cloud that converts wastewater into clean fuel

Enhanced Regulatory Oversight and Assistance:
The bill increases operational funding for the Department of Commerce’s Energy Resources Division and the Public Utilities Commission. This ensures stronger regulatory oversight of the energy market and expands support for energy assistance programs.

Senator Frentz’s Remarks:

"Minnesota has made historic progress toward 100% clean energy by 2040, and this budget ensures we don’t lose momentum," said Senator Frentz following the vote. "We’re investing in reliability, affordability, and smart infrastructure so Minnesotans can count on clean energy for decades to come while phasing out outdated programs that no longer deliver for ratepayers."

What’s Next:

With Senate approval secured, the bill now heads to a conference committee, where lawmakers will reconcile differences between the Senate and House versions before sending a final proposal to Governor Tim Walz.

This bipartisan package represents a critical milestone in Minnesota's clean energy journey—balancing bold environmental ambitions with economic pragmatism and the pressing need for reliable energy solutions.