Bill > SF4281

This bill establishes requirements for thermal energy network (TEN) plans, which are proposals by public utilities to construct a TEN to provide heating and cooling services. A TEN is a system that distributes thermal energy, similar to how natural gas or electricity is distributed. The bill amends existing law to include "service provided by a thermal energy network" as a type of service offered by a public utility, and defines "public utility" to encompass entities operating TENs. Key provisions require TEN service plans to detail project and customer preparation costs, construction schedules, efforts to secure incentives, and plans for economic development and job creation, including the use of prevailing wage standards and apprenticeship programs. The plans must also include a customer transition plan if the TEN will replace existing gas service, outlining communication, technical assistance, incentives to offset customer costs, and protections for low-income customers. Approved TEN service plans must ensure customer waivers for undue financial burden or technical infeasibility, inform customers about the transition from gas, contribute to state emissions reductions, and evaluate cost-effectiveness, considering lifetime project costs and future emissions benefits. The bill also outlines consumer protections for TEN service, similar to those for gas service, and allows utilities to recover reasonable costs for approved TEN plans, while preventing recovery for unnecessary gas infrastructure in areas served by a TEN. Finally, it designates priority zones for TEN projects, including areas where new gas infrastructure is less prudent, where gas infrastructure is old or leaky, or where communities have expressed interest in a TEN.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/94/2026/0/SF/4281/