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$370B in play: Businesses, government agencies and consumers are still trying to digest the implications of the recently passed Investment Reduction Act.

The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, will bring down consumer energy costs, increase American energy security and reduce carbon emissions by roughly 40 percent by 2030.

The 2022 legislative session is in the rearview mirror. Most attention is being focused on educating legislative and gubernatorial candidates on clean energy policy ahead of the November election this fall.

Despite a $9 billion budget surplus, very little was accomplished this session. Minnesota is leaving billions in federal funds on the table by not passing competitiveness matching funds.

President Biden announced a 2-year exemption from tariffs on solar panels imported from four south Asian countries – throwing the country’s solar industry a massive lifeline.

Despite a $9 billion budget surplus, very little was accomplished this session. If legislators don’t return to the Capitol, Minnesotans lose out on billions of federal dollars for energy and transportation projects that will go to other states.

Federal UI & frontline worker pay: The agreement around these issues paves the way for more conversations around energy. The House bill contains important investments and policy changes that are good for Minnesota’s clean energy community and innovators. The Senate bill includes Solar*Rewards funding, but doesn’t include money for the state’s competition fund – an important omission CEEM is trying to rectify.

It would be a surprise if some deal on replenishing the UI Trust Fund and Hero Pay is not reached. With over a $9.25 billion surplus, we are likely to see some form of tax relief passed, whether it be a rate decrease or “Walz Checks” as proposed by the Governor or some compromise proposal to emerge. The surplus should also mean there is room for at least some supplemental budget bills to pass before session ends. Finally, it is a “bonding year” and the Capital Investment Committees in both chambers are busy putting together a proposal.

The Legislature will take a break next week, from April 9 to April 18, and then return to complete their work by May 23. Both bodies have their omnibus bills together in some form and will begin passing them upon returning from break. Negotiations between the House and Senate will then take center stage over the final several weeks of session.