Minnesota SF 5100: Data centers provisions modifications

Bill Text

1.1 A bill for an act​
1.2 relating to data centers; modifying the criteria for preapplication evaluations of​
1.3 water appropriations for certain data centers; exempting certain data centers'​
1.4 electricity sales in calculating a utility's solar energy standard; exempting certain​
1.5 data centers from paying a fee; exempting certain data centers from paying sales​
1.6 tax on electricity purchases; providing for data center energy generation​
1.7 redundancy; amending Minnesota Statutes 2024, sections 116D.04, subdivision​
1.8 4a; 216B.02, by adding a subdivision; 216B.243, subdivision 8; 216I.02, by adding​
1.9 a subdivision; 216I.07, subdivision 2; Minnesota Statutes 2025 Supplement, sections​
1.10 103G.265, subdivision 5; 216B.02, subdivision 12; 216B.1623; 216B.1691,​
1.11 subdivision 2f; 216B.72; 216I.07, subdivision 3; 297A.68, subdivision 42.​
1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.13 Section 1. Minnesota Statutes 2025 Supplement, section 103G.265, subdivision 5, is​
1.14 amended to read:​
1.15 Subd. 5.Preapplication evaluation of certain water appropriation projects.(a) This​
1.16 subdivision applies to a data center, as defined in section 216B.02, subdivision 11, whose​
1.17 proposed net increase in consumptive use exceeds 100,000,000 gallons per year and which​
1.18 requires a permit amendment or a new individual permit.​
1.19 (b) In response to a contact from a data center regarding a project that is likely to be​
1.20 subject to this subdivision, the department may request preapplication information from the​
1.21 data center that is helpful in assisting the department to assess the factors affecting the ability​
1.22 of a water source to meet a project's water use needs at a proposed location, including:​
1.23 (1) a project description;​
1.24 (2) the project's estimated water use rates and volumes for the maximum day, maximum​
1.25 month, and average year;​
1​Section 1.​
26-08060 as introduced​04/08/26 REVISOR RSI/MG​
SENATE​
STATE OF MINNESOTA​
S.F. No. 5100​NINETY-FOURTH SESSION​
(SENATE AUTHORS: MATHEWS)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​8000​04/13/2026​
Referred to Energy, Utilities, Environment, and Climate​

2.1 (3) the anticipated source of water; and​
2.2 (4) water quality or temperature requirements.​
2.3 (c) The department may request any additional information necessary from the data​
2.4 center to assist it to assess the ability of a water source to meet a project's water use needs.​
2.5 (d) The commissioner shall evaluate the information supplied under this subdivision​
2.6 and shall respond in writing, which may be electronically transmitted, describing potential​
2.7 water availability constraints at each proposed project site.​
2.8 (e) In determining the impact of a potential project on water quality and quantity, the​
2.9 commissioner may consult with the commissioners of health, agriculture, and the Pollution​
2.10 Control Agency, and other state agencies.​
2.11 (f) Any communication made or information exchanged under this subdivision between​
2.12 a data center and a government agency, or between government agencies, is nonpublic data,​
2.13 as defined in section 13.02, subdivision 9.​
2.14 (g) None of the discussions, filings, or evaluations made under this subdivision preclude​
2.15 or supplant environment review, preliminary well-construction approval, appropriation​
2.16 permit review, or any other requirements under federal, state, or local law.​
2.17 (h) For purposes of this subdivision, "net increase in consumptive use" means the​
2.18 estimated net increase in annual water consumption by a data center after subtracting​
2.19 documented reductions in consumption from the same water source by other entities that​
2.20 occurred within the past ... years or are scheduled to occur within ... years of the date the​
2.21 data center initiates operations.​
2.22 (i) This section does not apply to a qualified large-scale data center, as defined in section​
2.23 297A.68, subdivision 42, that:​
2.24 (1) files an application on or before January 1, 2035, with a county, town, or municipality​
2.25 for a permit or approval that is necessary to allow for construction; or​
2.26 (2) is located in an eligible community, as defined in section 116J.55, subdivision 1.​
2.27 EFFECTIVE DATE.This section is effective the day following final enactment.​
2.28 Sec. 2. Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read:​
2.29 Subd. 4a.Alternative review.(a) The board shall by rule identify alternative forms of​
2.30 environmental review which will address the same issues and utilize similar procedures as​
2​Sec. 2.​
26-08060 as introduced​04/08/26 REVISOR RSI/MG​

3.1 an environmental impact statement in a more timely or more efficient manner to be utilized​
3.2 in lieu of an environmental impact statement.​
3.3 (b) Upon adoption by the responsible governmental unit of the environmental document​
3.4 and plan for