Minnesota Natural Gas Innovation Act Signed Into Law

June 29, 2021

By Michael R. Cummings and Melissa J. Rahn

Blue flame of a burning natural gasOn June 26, 2021, passing with bipartisan support, Minnesota’s Natural Gas Innovation Act (Special Session HF6, the Commerce and Energy Omnibus) was presented and signed into law by Governor Walz.

The Natural Gas Innovation Act establishes a regulatory framework for natural gas utilities to contribute to meeting Minnesota’s greenhouse gas reduction and renewable energy goals through the development of “innovation plans” using “innovative resources.” Innovative resources include biogas, renewable natural gas, power-to-hydrogen, power-to-ammonia, carbon capture, strategic electrification, district energy and energy efficiency.

A natural gas utility that obtains approval of an innovation plan from the Minnesota Public Utilities Commission can seek limited cost recovery for reasonable and prudently incurred costs. The Natural Gas Innovation Act requires that by June 1, 2022, the Public Utilities Commission issue an order establishing a framework to calculate lifecycle greenhouse gas emissions intensities of each innovative resource.

Fredrikson & Byron’s experienced Energy and Government Relations teams help clients navigate regulatory and legislative matters regarding renewable energy, renewable fuels, and carbon capture and sequestration throughout the Upper Midwest.