Reflections on the 2026 Legislative Session
The 2025-2026 biennium came to a close with the anticipated last-minute bonding bill and some accomplishments but sparse activity in the climate and energy space.
The MN Senate passed an Energy Omnibus bill that included the plug-in solar bill. Unfortunately, the Energy omnibus was one of those that did not make it to the finish line after passing in the Senate, so the plug-in solar bill will have to be brought back next session.
Included in the bonding bill is $5 million for community tree planting grants (page 5) and specific PFAS removal upgrades for Apple Valley’s water treatment plant and for Hastings and Oak Park Heights (page 9).
The final tax bill does include some minor positive tweaks to the definition of so-called sustainable aviation fuel (SAF). Tax credits are not permitted for SAF that supplies CO2 for enhanced oil recovery (EOR) to produce more fossil fuels, a familiar concern for carbon pipeline proposals.
And to be eligible for tax credits, SAF made from biomass must be produced in the U.S. and if it uses agricultural feedstocks, they must come from land that was cleared or cultivated prior to 2008, so it will be less likely to promote deforestation or land use conversion (see Article 2 here).
Beyond that, there were many good bills introduced this session on data centers, along with some objectionable ones, and while NDAs and a moratorium were brought up as amendments on the Senate floor in the last several weeks, ultimately nothing was passed.
There will be significant turnover next year with all House and Senate seats on the ballot in November and a high number of retirements – so keep talking with your friends and neighbors and your candidates, new and incumbents, about what you want them to prioritize when the new biennium begins.