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Committee hears calls for stronger environmental review for hyperscale data centers; bill laid over
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Summary
The House Energy Finance and Policy Committee heard competing testimony on House File 2862, which would add tailored environmental review and permitting for hyperscale data centers and require PUC flexibility reporting; supporters called for transparency and EIS-level review, while industry and utilities warned of economic risks. The bill was laid over for further work.
The House Energy Finance and Policy Committee on April 14 heard extensive testimony on House File 2862, a proposal to require tailored environmental review, permitting and public engagement for hyperscale data-center projects.
Chair Acum moved the DE1 amendment and invited testifiers. Amelia Voss of the Minnesota Center for Environmental Advocacy told the committee, “No data center project has done an EIS in Minnesota,” and urged an environmental impact statement and stronger public disclosure so communities can weigh impacts on electricity use, water, wetlands and waste streams. Sarah Marie of CURE said the current AUAR process has been inconsistently applied and “fails to report critical things like the total electricity use and how this will impact the community’s utility rates.” Kathy Johnson, speaking for the Coalition for Responsible Data Center Development, cited site-specific concerns in Farmington including water requests and threatened species and asked the legislature to establish a proactive EIS-triggering framework.
Industry and unions offered a different view. Jim Pierce of Xcel Energy described an electric service agreement filed with the Public Utilities Commission for a Pine Island project and said the agreement enables new wind, solar and battery resources and that the company expects to show benefits to existing customers. “This agreement will bring benefits to our existing customers to the tune of about $75,000,000 a year,” Pierce said, and noted new-generation and storage investments tied to the project. Dan McConnell of the Minnesota Building and Construction Trades Council warned that a substantially different permitting regime could jeopardize billions in investment, thousands of jobs and local revenue and urged building on last year’s data-center framework.
Supporters of HF2862 said the bill would create predictable, transparent review that reduces litigation risk and gives communities meaningful opportunities for input. Opponents said data centers already face PUC review related to electricity and that singling out one development type for additional permitting could produce uneven outcomes.
The committee laid the bill over to allow continued negotiation. No final votes on the bill itself occurred; the DE1 shaping amendment was adopted in committee prior to layover.
