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HF 3802

Exemptions to the certificate of need requirement amended.

2025-2026 Regular Session Introduced by Keith Allen and 8 co-sponsors

The bill narrows or clarifies CON exemptions for many energy projects, potentially speeding approvals by reducing review requirements while preserving oversight for larger, multi-c

Effective date 04/22/26
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Bill Summary · HF 3802

Summary of HF 3802 (2025-2026) – Exemptions to the Certificate of Need Requirement Amended (Minnesota)

1) Purpose and intent

HF 3802 amends Minnesota Statutes § 216B.243, subdivision 8, to modify the exemptions from the state certificate of need (CON) process for various electric generation, transmission, and related energy projects. The bill narrows or expands exemptions for specific types of projects and, in some cases, adds conditions that determine whether a project must undergo CON review. The overarching effect is to streamline or clarify which energy projects can proceed without CON approval, while ensuring certain projects still trigger review when they meet defined criteria.

2) Key provisions and changes

  • Section 216B.243, Subd. 8, Exemptions (a) Updated list of exemptions:

    • (1) Cogeneration or small power production facilities with a single-site capacity under 80,000 kilowatts (kW); facilities for ethanol or fuel alcohol; or any case where the Minnesota Public Utilities Commission (now “commission”) has determined federal preemption applies.
    • (2) High-voltage transmission line primarily serving a single customer at a single location, unless the applicant opts to have the commission determine need under this section or 216B.2425.
    • (3) Upgrades to a higher voltage for an existing transmission line serving a single customer using existing rights-of-way, unless the applicant opts to seek CON determination under this section or 216B.2425.
    • (4) A high-voltage transmission line of one mile or less connecting a new/upgraded substation to an existing line.
    • (5) Conversion of an existing electric generating plant to natural gas.
    • (6) Modifications to improve efficiency of an existing plant, provided capacity does not increase by more than 10% or 100 MW, whichever is greater.
    • (7) Large wind energy conversion systems (WECS) or solar generating systems for which a site permit is submitted by an independent power producer under chapter 216I.
    • (8) Repowering of WECS or solar projects that either:
    • (i) do not exceed the system’s nameplate capacity from the most recent interconnection agreement, or
    • (ii) exceed that nameplate capacity if a signed generator interconnection agreement with MISO reflects the expected net power increase.
    • (9) Energy storage systems as defined in 216I.02, subdivision 6.
    • (10) Transmission lines that directly interconnect large WECS, solar, or energy storage systems to the transmission system.
    • (11) Relocation of an existing high-voltage transmission line to a new right-of-way, with new structures not designed for higher voltage.
    • (12) Upgrade or rebuilding of an existing electric line and related facilities from less than 100 kV to a high-voltage transmission line at 115 kV, provided at least 80% of the upgraded line in Minnesota runs along an existing electric line right-of-way.

  • (b) Definitions

    • “Repowering project” means:
    • (1) Modifying a large WECS or solar system to increase efficiency without increasing nameplate capacity.
    • (2) Replacing turbines in a WECS without increasing nameplate capacity.
    • (3) Increasing the nameplate capacity of a WECS.

  • Effective date

    • The act becomes effective the day after final enactment.
    • Applies to projects where upgrading or rebuilding has begun on or after that date.

3) Who or what is affected

  • Electricity generation facilities (WECS, solar, biomass-related projects, energy storage systems) and upgrades/modifications that fall within listed exemptions.
  • Transmission lines and related upgrades, relocations, and interconnections, especially those serving single customers or relying on existing rights-of-way.
  • Projects undergoing repowering or efficiency upgrades to large wind or solar facilities.
  • Independent power producers and developers seeking site permits under chapter 216I.
  • Interconnection arrangements and settlements managed by MISO for capacity changes.

4) Procedural and timeline aspects

  • The bill went through the Minnesota legislative process in 2025-2026, with multiple readings, committee consideration, and a path to the governor for signature (presented 04/20/2026).
  • The effective date is immediate upon final enactment, applying to upgrading or rebuilding projects begun on or after that date.
  • Certain exemptions (e.g., expedited review for single-customer transmission lines, repowering, and storage) are contingent on meeting specific criteria and, in some cases, on opting for CON review or interconnection agreements.

5) Practical impact

  • Potentially reduces CON review requirements for a broad set of energy projects, which can shorten project timelines and reduce regulatory complexity.
  • Maintains protections and review for projects with significant capacity increases, multi-customer transmission needs, or those that may have broader regional impact.
  • Creates clearer thresholds for what constitutes an exemption, particularly around repowering, upgrades, and large-scale WECS/solar developments.

Note: This summary reflects the bill text as introduced and engrossed editions up to the 1st Engrossment. For final, authoritative language and any amendments, consult the enacted statute and the bill’s enrolled version.

Compiled from official sources — confirm details with the bill’s official record.

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