Senate finance panel strips budget from energy bill, sends policy portions to floor; $15M LIHEAP boost and $39M in RDA awards detailed

Senate Finance Committee members on April 30 voted to split Senate File 4504, moving budget provisions into the supplemental finance vehicle and sending the bill’s policy portions to the Senate floor.

Senator Friends, who presented SF4504 as the energy budget and policy bill, moved the A21 amendment to remove finance items. The committee adopted A21 by voice vote, and later recommended the remaining policy language to pass with staff instructed to make technical and conforming changes.

Why it matters: the bill combines policy changes for energy programs with new spending. Senator Friends told the committee the proposal includes a $15,000,000 general fund appropriation for supplemental energy assistance targeted to low-income Minnesotans, and he estimated about 70% of that amount would go to Greater Minnesota. “This is energy assistance for those Minnesotans that have the least,” Senator Friends said. The committee adopted the division so members could consider policy independently of the budget mechanics.

Budget details and RDA awards: Mr. Mueller walked the committee through the House File 2433 A39 spreadsheet that would receive the finance items removed from SF4504. Article 13 in the amendment contains three fiscal items, including a roughly $40,000 cost to the Public Utilities Commission for thermal energy networks (net general fund $0 through assessment recovery), the $15,000,000 one-time energy assistance appropriation (LIHEAP-like), and changes to a petrol fund program that could accelerate fee triggers when balances fall below $4,000,000.

Article 14 contains Renewable Development Account (RDA) appropriations and transfers totaling $39,000,000. Mr. Mueller listed project allocations included in the amendment: $800,000 for a University of St. Thomas microgrid project; $3,500,000 for a green hydrogen project in St. Cloud; $5,000,000 for an anaerobic digester system; $2,250,000 for Como Zoo geothermal; $2,000,000 for Minnesota Energy Alley; $2,000,000 related to ammonia/hydrogen renewable energy certificates; $500,000 for the Great Plains Institute to study distributed ammonia; $2,570,000 for Macalester College geothermal; $715,000 for a Becker biomass facility; and $3,000,000 for a geothermal project at The Heights. Additional RDA appropriations went to university research and agency projects, a $300,000 PUC advanced nuclear study, $2,000,000 in geothermal planning grants (transfer), and $4,465,000 for pre-weatherization grants (transfer).

Petrol fund mechanics: Mr. Mueller explained the petrol fund has an automatic 2¢/gallon fee that is triggered when the fund balance drops below $4,000,000 to replenish the fund. He warned that adding new reimbursable costs could deplete the fund faster and make the fee trigger occur more often.

Nuclear study scope: In response to a question from Senator Pratt, Senator Friends said the bill funds a broader nuclear study than earlier efforts, covering advanced nuclear, waste disposal, potential usages and rate-payer impacts, and that the Prairie Island Indian community and Xcel Energy now support the study — a change from earlier neutral or opposed positions.

Next steps: The committee adopted the A39 amendment to add the finance pieces into the HF2433 vehicle by voice vote and laid the vehicle over for further amendments and floor consideration. The policy portions of SF4504 were recommended to pass and will proceed to the full Senate; the budget pieces will be considered in HF2433 in a subsequent markup.

Provenance: Topic introduced SEG 018; spreadsheet walkthrough and RDA project list SEG 180–325; LIHEAP discussion SEG 093–114; A21 adoption and policy passage SEG 077–172; A39 adoption SEG 386–395.

Speakers quoted or referenced: Senator Friends (presenter), Mr. Mueller (fiscal analyst), Senator Pratt (questioner).