Bill would require regional demand forecasts for large oil pipeline certificates of need

Representative Jones introduced House file 43 77, a bill intended to clarify demand-forecasting criteria that the Public Utilities Commission must consider when evaluating certificate of need applications for large oil pipelines.

Jones said the proposal would require applicants to assess projected consumption of gasoline and other refined petroleum products in Minnesota and immediate neighboring states, and to account for policy shifts, population changes and technology adoption when forecasting demand over a 15-year horizon. "If we are going to take on that risk, we need to make sure there is a true benefit and justifiable demand for new oil pipelines," Jones said.

Andy Pearson, a senior organizer with CURE (a community-based nonprofit), said the bill aligns demand forecasting with ultimate consumer use rather than partner-company contracts and would help avoid unnecessary infrastructure and litigation. Ben Olsen, legislative director at the Minnesota Center for Environmental Advocacy, said the change would clarify application standards and reduce ambiguity that has led to controversy in past proceedings.

Representative Sexton, a former pipeline professional, questioned whether private pipelines are subject to public-utility oversight and noted property-tax revenue and eminent-domain practices. He warned the measure could raise legal issues tied to the interstate Commerce Clause and said pipeline companies typically seek appropriately sized pipe to meet demand.

Representative Jones said the bill does not ban pipelines and that the forecasting exercise is intended to ensure Minnesota does not shoulder disproportionate environmental or economic risk if regional demand does not justify new infrastructure.

Committee took no final vote on the policy and laid the bill over for further work.