Committee sends data-center backup-generator bill to environment committee after split vote

The House Committee on Energy, Finance and Policy on Feb. 14 referred House File 28 to the Environment and Natural Resources Finance and Policy Committee after an 8-7 roll call, moving forward a measure that would narrow state certificate-of-need review for standby generation at large data centers and allow some projects to use local alternative urban area-wide review (AUAR) processes instead of Public Utilities Commission (PUC) site-permit environmental review.

Representative Mecklen, the bill’s author, framed HF28 as an economic development measure intended to help communities that have lost large power-plant tax bases. “This is going to create a environment where we can be the host state of a tremendous amount of private capital investment,” Representative Mecklen said, arguing data centers could replace lost tax revenue and provide construction and permanent jobs in places such as Becker.

Supporters — including elected officials from Becker, Xcel Energy and several labor unions — told the committee that Becker and other communities face large revenue losses as coal-fired units retire and that AUAR work done locally should not be repeated. Jeremy Schmidt, superintendent of Becker Public Schools, told the committee his district could lose “about 40% or the equivalent of around $5,000,000 out of our $12,000,000 levy” when Sherco units go offline, and called HF28 “a critical opportunity to address those…