House File 9 advances to taxes after committee debate on nuclear, hydro, carbon capture and sales-tax changes

Representative Swazinski, the bill’s author, moved that House File 9 be referred to the Committee on Taxes after presenting a proposal that would lift Minnesota’s moratorium on new nuclear plants, expand the definition of eligible hydroelectric power under the state’s carbon-free standard, endorse carbon capture (while stating no state financial obligation), delay certain compliance deadlines for utilities that fail a rate test, prohibit demolition of fossil-fuel plants in some circumstances, and extend a sales-tax exemption for natural gas and electricity used as primary residential heat year-round beginning July 1, 2026.

The bill’s supporters told the committee the changes aim to shore up reliability and lower electric costs as coal plants retire and demand grows. Jenny Glumack, director of government affairs for the Minnesota Rural Electric Association, said the MISO region is “characterized as high risk” in the 2024 NERC long-term reliability assessment and argued that “we need base load energy, especially on these cold days and hot days.” Michelle Benson, director of energy policy for the Minnesota Chamber of Commerce, told the panel Minnesota needs “a low cost energy supply to support” businesses and said House File 9 would “reduce energy costs for Minnesotans, improve…