
Fresh Energy has been advancing bold, equitable clean energy and climate policy for over three decades, and we’ve had a historic two years at the Minnesota Legislature in 2023 and 2024. As we enter a new biennium with a divided government at the state level and a new dynamic of federal policy, Fresh Energy is ready to meet the moment and continue our commitment to a rapid, equitable energy transition that benefits all Minnesotans.
This year’s session will be different than the last few, because uncertainty, slim majorities, and political polarization will significantly affect how business gets done at the Minnesota Capitol. The Legislature’s most urgent business will be working to pass a budget for the coming biennium, ensuring that our state government can continue to function and serve Minnesotans. This includes critical work at the Minnesota Department of Commerce and other agencies that are charged with ensuring clean and reliable energy meets the demands of our climate crisis.
In early January, Fresh Energy staff Justin Fay, Brynn Kirsling, and Jo Olson sat down to record the annual “Legislative Outlook” episode for our podcast — if you missed it, you can stream it here or find it by subscribing to “Decarbonize: The Clean Energy Podcast” on your favorite podcasting app.
While the session is off and running, Fresh Energy has begun our work ensuring that our clean energy and climate progress continues, finding short-term victories for meaningful climate progress while aggressively defending our most critical bedrock clean energy policies and strategizing for long-term success with ambitious new initiatives to decarbonize our state.
Keep reading to learn about our expectations and priorities for the the 2025 legislative session. Be sure to sign up for our Action Network to help us advance the issues below.
This year’s legislative session is precedented but unique
The 2025 session of the Minnesota Legislature started on January 14, and it has already proven to be anything but ordinary. Following last November’s election, the Minnesota House was slated to be evenly divided at 67 Democrats and 67 Republicans – a situation not seen since 1978. This tie led to a carefully negotiated power-sharing agreement between parties, with co-chairs from each party leading legislative committees and each having equal representation in committee structures. However, the need for bipartisan cooperation in our polarized political climate means the likelihood of significant legislative breakthroughs is slim; across nearly all policy areas, progress will be difficult and extremely hard won.
Things in the Minnesota Senate are less turbulent. Although it faces a temporary 33-33 tie following the recent passing of Senator Kari Dziedzic, a dedicated climate leader and former Senate Majority Leader, a special election will be held on January 28 to fill her seat. While the Senate’s tie is less disruptive due to established committee structures and a newly negotiated power-sharing agreement between DFL and GOP Senate leaders, it adds another layer of complexity to this session.
Despite these challenges, Fresh Energy remains committed to advancing our mission to equitably decarbonize Minnesota’s economy. It’s important to remember that legislative progress often takes years of planning, relationship-building, and persistence. Our team of policy experts is leveraging strategies to safeguard our past victories at the Capitol, secure new climate-forward policies where we can, and ensure Minnesota benefits from a clean energy future.
What we’re looking forward to in Minnesota’s 2025 legislative session
Geothermal policies to advance clean heat in Minnesota
Last year’s legislative victories included $1.2 million in geothermal planning grants to support local communities in the pre-design phase of geothermal development. With the grant program’s launch in December of 2024, Fresh Energy is working to advance policies that build on this success and make geothermal technology more accessible and impactful for Minnesotans. The work of Empower Crookston, which Fresh Energy is proud to be in partnership with, exemplifies how local communities can lead the way in clean heating solutions, creating replicable models for the rest of the state.
Addressing energy rater shortage for energy efficient buildings
Energy efficiency is a key piece of Minnesota’s climate puzzle, especially with our cold winters. Federal programs under the Inflation Reduction Act offer grants and incentives for building energy-efficiency buildings in Minnesota to meet passive house and net-zero standards. However, accessing those funds requires a certified energy rate to visit the building to ensure it meets certain standards – and there aren’t enough energy raters, especially in Minnesota, for the buildings that need them. Fresh Energy is exploring legislative solutions to address this geographic equity issue, helping ensure Minnesota can unlock these historic federal investments and build more climate-smart buildings in the state.
Setting a Thermal Resource Standard to decarbonize Minnesota’s buildings
Building on the success of Minnesota’s 100% clean electricity law, Fresh Energy is initiating discussion on a Thermal Resource Standard to decarbonize Minnesota’s buildings sector by a certain date. This market-based mechanism would gradually reduce emissions from heating fuels, creating a framework similar to the clean electricity standard. While this ambitious policy will take time to develop, it is a foundational step in achieving Minnesota’s bold climate goals. And don’t get too committed to the name, “Thermal Resource Standard!” Fresh Energy and partners are still determining an official name for this bill.
Key partnerships: advancing climate solutions together
Fresh Energy’s policy work is rooted in collaboration. One partnership we’re especially excited about is with White Earth Tribal and Community College (WETCC). WETCC is developing a Trades Building to expand its workforce training programs that help meet northern Minnesota’s workforce development needs by training plumbers, HVAC technicians, welders, carpenters, and renewable energy installers. This initiative builds on the program’s success to offer additional certifications, which will support economic growth, family-sustaining careers, and a just energy transition in rural Minnesota.
We’re also continuing our coalition with Drive Electric Minnesota and the Great Plains Institute to address technical challenges and opportunities in the electric vehicle space. These partnerships bring together diverse stakeholders to navigate a divided government and accelerate electric vehicle adoption across the state.
Emerging topics Fresh Energy is watching
Fresh Energy is keeping an eye on several developing issues that could influence this legislative session, including:
- Data centers: As energy-intensive data centers continue to grow in Minnesota, Fresh Energy is monitoring their impacts to ensure they align with the state’s decarbonization goals.
- Sustainable Aviation Fuel (SAF): Sustainable aviation fuel represents a promising opportunity to reduce aviation emissions using agricultural feedstocks from Minnesota. Fresh Energy is working to ensure SAF development meets robust climate benchmarks as the industry emerges.
- State budget: Minnesota faces a small surplus for 2025-26 and projected a deficit for the years afterward. Fresh Energy will continue to advocate for climate and energy policies to remain a top funding priority as legislators craft the state budget.
While this legislative session poses unique challenges to Minnesota’s climate goals, Fresh Energy remains steadfast in its commitment to advancing bold, equitable climate policies. By continuing to build partnerships, advocating for equitable solutions, and navigating complex political landscapes, we are ensuring that Minnesota’s clean energy transition continues to move forward.