Energy Omnibus bill abandons bipartisan work, Housley urges consideration of policies that lower costs and ensure reliability

This week the Minnesota Senate passed the Energy Omnibus bill (H.F. 2442), abandoning a host of bipartisan provisions originally approved by the Senate Energy Committee. The Energy Committee’s target was a modest $4 million cut for the next biennium.

What began as a bipartisan effort to deliver affordable, reliable, and clean energy for Minnesotans was gutted into a bare-bones bill that overlooks rising energy costs, grid reliability, and the tools needed to meet the state’s 100% clean energy mandate by 2040. The original committee version earned full Republican support, but the version brought to the Senate floor stripped out key provisions aimed at strengthening Minnesota’s energy future.

“I’m incredibly disappointed that the good bipartisan work done in committee was abandoned on the Senate Floor, and as a result, we have a partisan Energy bill that does little to ensure reliability and affordability for Minnesota families,” said Senator Karin Housley (R-Stillwater).

This bill grows energy-related government agencies with full funding and added staff. Despite a $6 billion budget deficit and a negative target, not a single agency was asked to tighten its belt, demonstrating a continued pattern of expanding government no matter the fiscal outlook.

Republicans offered a series of amendments aimed at giving energy producers the tools they need to meet Minnesota’s 100% clean energy mandate by 2040, while also working to lower costs for consumers. Democrats rejected every proposal. Among the key Republican-backed amendments that were not adopted:

  • Restoring the bipartisan committee bill: Would have returned the bill to the bipartisan version that passed committee, focused on energy affordability and reliability.
  • Lifting the moratorium on nuclear energy: Proposed ending the decades-long ban on new nuclear plants to expand reliable, carbon-free baseload power.
  • Net metering reform: Sought to modernize outdated solar buyback rules that currently shift costs onto low- and middle-income ratepayers.
  • Biodiesel exemption during peak demand: Would have allowed diesel generators using biodiesel to operate during peak periods—a critical tool for many rural utility providers.
  • Hydropower cap removal: Proposed removing the cap on hydroelectric power so it can count as a carbon-free energy source, boosting reliability and affordability.

During last week’s floor session when the bill was first brought up for consideration, an amendment was adopted to classify energy produced from certain wood waste as “carbon-free.” Using wood waste for energy prevents its decomposition in forests, which can release significant greenhouse gases, and instead turns it into a renewable energy source. While the amendment was initially adopted, the bill was later laid on the table and on Monday, May 12, the amendment was reconsidered and not adopted.

One bright spot in the final bill includes a provision that addresses the growing emerald ash borer crisis. The measure appropriates money to a Shakopee biomass energy generation plant to purchase equipment to facilitate the disposal of wood that is infested by emerald ash borer.

“When debating any energy legislation, we must consider ways to move towards a carbon-free future, but we cannot do that unless we’re using all resources available, and doing so in a way that keeps costs down for Minnesota families,” said Housley. “Republicans offered numerous amendments to meet that standard, and I’m disappointed all were rejected in the name of partisanship. We need to put partisan politics aside and do what’s right for families who are concerned about the rising cost of energy.”