Committee lays over bill to expand Minnesota Energy Alley after amendment adopted

A Minnesota House committee laid over House File 1013 on March 18 after adopting an author's amendment that tightens language and adds a reporting requirement.

The bill, introduced by Representative Kraft, seeks continued support for Minnesota Energy Alley, an initiative proponents described as a public'private effort to help clean'energy startups scale in Minnesota. "Minnesota Energy Alley is about developing a kind of Silicon Valley of clean energy in Minnesota," Representative Kraft said when moving the bill and the amendment.

Why it matters: Testifiers said the initiative has already helped startups reach commercialization milestones and attract outside investment. Greg Mast, executive director of Clean Energy Economy Minnesota (SEAM), told the committee the program works alongside more than 80 business members to provide seed funding and demonstration opportunities. "We are confident that this bill, as amended, will build and expand on the program's early success in supporting and nurturing start up businesses," Mast said.

Bridgel Catalyst (referred to in testimony as Bridal Catalyst) and other partners described measurable outcomes from the first appropriation. Nina Axelson, president of Bridal Catalyst, said the program supported more than 20 Minnesota businesses, placed eight earlier-stage companies in an incubator and funded five Minnesota pilot projects. Axelson said the initial program investment has helped attract roughly $11 million in follow-on public and private funding since 2024 and that the initiative had invested just over $1 million in pilots.

Flow Environmental Systems, a Minnesota company developing a CO2 heat pump, described a pilot funded through the initiative. Nabud Birney, cofounder and chief financial officer of Flow, said the company will deploy a demonstration unit at a local training facility in St. Paul and expects it to be operational by summer. "With the initiative support and the guidance from the teams at Bridal Catalyst and SEAM, we will mobilize this pilot this spring and have a fully working heat pump installed by this summer," Birney said.

Committee action: Representative Kraft moved the DE2 amendment, which the chair put to voice vote; the amendment was adopted and the bill was laid over for further consideration in omnibus. No roll-call vote totals were specified in the transcript.

The discussion centered on economic development, commercialization support and leveraging private capital rather than regulatory or compliance requirements. Several committee members praised the program's return on investment and expressed bipartisan support.

The bill will remain under consideration as lawmakers continue negotiations on energy and renewable development account appropriations this session. Proponents asked that further work continue on drafting and appropriation language ahead of omnibus negotiations.