Legislation to provide compensation to businesses affected by the Benson Power Plant passed a key committee hurdle on Tuesday. Senate File 182, authored by Senator Andrew Lang (R-Olivia), was cleared by the Senate Energy and Utilities Finance and Policy Committee, and laid over for possible inclusion in a forthcoming budget bill. Similar legislation was vetoed by former Governor Mark Dayton in 2018.

“The closure of the Benson Biomass Plant had a serious impact on many area businesses and individuals that served the plant. They are facing serious financial losses and business closures,” said Senator Lang. “These losses are having an undeniable effect on our area. My legislation aims to assist those businesses and individuals who are experiencing financial hardship and aid in the development of other avenues.”

Xcel Energy purchased and closed the Benson Power Plant in 2017, despite being under contract to buy the plant’s power through 2028. The legislation would shift $40 million in non-taxpayer dollars into a special account for businesses affected by the plant’s closure and establish a process for receiving compensation. The compensation would come from a fund to which Xcel Energy makes an annual contribution. In order to be eligible for the compensation, businesses would be required to demonstrate a valid contract or an ongoing business relationship with the plant. In addition, businesses would be required to show decreased operating income or the loss of property value based on the plant’s closure.

Senator Lang continued: “When the Benson facility closed early, it had a ripple effect on area businesses that were counting on it. This bill brings long-overdue relief to those negatively affected by the biomass plant’s closure.”

Senator Andrew Lang, of Olivia, represents District 17, which includes communities in Chippewa, Kandiyohi, Renville, and Swift counties.