Our policy work

CEEM’s 2026 goal is to decarbonize Minnesota’s economy and accelerate the growth of the state’s clean energy industry while embracing emerging clean technologies. CEEM will continue to build upon policies encouraging economy-wide decarbonization and market development for clean energy by reducing and eliminating key barriers such as lack of transmission and ensuring grid reliability.

In 2026, CEEM will be working to support Minnesota’s renewable energy growth through actions like improving the permitting process, supporting smart load growth, and exploring carbon-free resources and innovative clean technology solutions.

CEEM’s 2026 goal is to maintain Minnesota’s competitiveness and access to clean energy solutions while implementing equitable strategies to existing industry workforce challenges.

CEEM continues to educate lawmakers and interface with the business community around innovative new technologies including green ammonia and green hydrogen. These technologies hold a lot of promise for hard-to-decarbonize industrial sectors in Minnesota. In 2026, CEEM will secure funding to expand the Minnesota Energy Alley initiative to continue to strengthen the state’s energy and economic development future.

With shifting policies and economic conditions that risk slowing clean energy job growth, CEEM is prioritizing strategies that help to maintain a resilient and adaptable clean energy workforce. From the 2025 Clean Jobs Midwest Minnesota report, the state currently has 63,802 clean energy jobs to protect. CEEM will work to secure funding to assess and develop a statewide clean energy workforce development plan that supports job retention and equips workers with transferable skills that allow them to move within the sector without experiencing negative impacts of uncertainty. Additionally, CEEM will also support efforts to maximize existing and sunsetting tax credits and incentives by leveraging state programming that advances clean technology, family-sustaining jobs, and in-state manufacturing.

The last biennium at the Minnesota State Legislature secured significant wins for the Solar and Energy Storage industry. In 2023, the Solar*Rewards program secured $12.5 million, a new Energy Storage Incentive program received $4 million, and other solar incentives included funding for Solar on Schools and Solar on Public Buildings. Additionally, the Community Solar Garden (CSG) program was modernized and included preservation to the subscriber-based model for inclusion of projects up to 5 MW and new Distributed Generation (DG) of up to 10 MW. In 2024, the legislature passed a package deal of $50 million from the Renewable Development Account beginning in 2026 for a $5 million appropriation to be withheld for the next ten calendar years for the Solar*Rewards program. This legislation ensures the security of annual funding, reliable program support, and reestablishes incentives for the adoption of solar energy in Minnesota.

In 2025, CEEM worked to protect Minnesota’s solar industry from the sunsetting of the Community Solar Garden program, proposed changes to the state’s net metering policies, and new setback requirements for solar project siting. Together with our members, CEEM educated legislators on the potential impacts of these harmful policies and pushed for solutions that preserve the state’s clean energy progress.

In 2026, CEEM will continue to advance market opportunities for solar and energy storage to deliver resilience, security, and cost savings. CEEM has seen a growing trend in energy storage in Minnesota as a way to meet our clean energy demand, and will work to expand this technology by addressing policy and market barriers. Working alongside members and labor partners, CEEM will explore targeted reforms to Minnesota’s solar licensing and project-ratio rules aimed at improving consistency across projects statewide, easing administrative bottlenecks, and enhancing predictability and transparency in the project approval process. Additionally, CEEM will focus on policies to support consumer protections and ensure ethical business practices, protect legacy projects, and extend and secure solar and energy storage incentives.

According to the 2025 Biennial Greenhouse Gas Emissions Reductions report from the Minnesota Pollution Control Agency (MPCA), “the transportation sector is currently the largest source of greenhouse gas (GHG) emissions in Minnesota, accounting for about 29% of the state’s total emissions.” The state still has a long road ahead in lowering emissions from the transportation sector.

CEEM is dedicated to supporting solutions that work to reduce these emissions and electrify the transportation sector in Minnesota. Electrifying the transportation sector and expanding the transportation infrastructure section not only helps reduce emissions but will also create additional jobs and help speed our transition to a clean energy economy.

In the 2026 legislature, CEEM will continue statewide efforts to build a reliable fast-charging network by expanding EV charging infrastructure across Minnesota. CEEM will also work to expand business options for commercial EV fleets by supporting incentives, innovative financing mechanisms, and accessible charging solutions that lower barriers to adoption. Additionally, CEEM will educate stakeholders about efforts to implement a Clean Transportation Standard in Minnesota and will continue to support initiatives that advance the electrification of heavy-duty transportation.

In recent legislative sessions, CEEM worked to streamline the implementation of the Energy Conservation and Optimization (ECO) Act. CEEM supported the ECO Act when it was passed and signed into law by Governor Tim Walz in 2021. Included in the most recent modification of the ECO Act was clarifying language on marketing efficient fuel-switching programs and expanded opportunities for consumer-owned utilities to spend on efficient fuel switching. Additionally, CEEM also supported legislation to update residential building codes to increase efficiency requirements and accelerate the adoption of codes.

In the 2026 session, CEEM will continue advancing efforts to expand the availability and use of energy-efficiency technologies and programs that help decarbonize buildings and the built environment. CEEM will build on its Energy Savings Performance Contracting (ESPC) working group, which collaborates with state agencies and CEEM members to streamline ESPC programming and educate entities on energy conservation measures. CEEM will also support efforts that modernize building energy codes and standards, including energy optimization, net-zero goals, building performance standards, and grid-interactive buildings. In addition, CEEM will accelerate industrial decarbonization by expanding low- to medium-heat solutions and advancing a green iron project through improved electric rates, new incentives, stakeholder collaboration, and early adopter commitments.

Minnesota is facing a severe oversupply problem when it comes to dealing with wood waste from emerald ash borer. CEEM believes bioenergy facilities can help the state address this problem — but it will need additional funding to smooth the path. CEEM is a member of the Bioeconomy Coalition of Minnesota, which works to expand market opportunities for agricultural and forestry products. One market is electricity generation; in 2023 biomass fueled 2% of Minnesota’s total electricity generation and 6% of the state’s renewable generation. Biomass facilities play an important role in the bioeconomy, as they create energy from products that would otherwise be wasted.

As a member of the Minnesota Bio-Fuels Association, CEEM supports policies that create more markets and business opportunities for the renewable fuels industry. One example is the Bioeconomy Production Incentive, which was passed by the Legislature in 2015. It has been a popular program and has created jobs in advanced biofuels, renewable chemicals, and biomass thermal energy. CEEM supports fully funding this incentive program. Another example is the Sustainable Aviation Fuel (SAF) tax credit, which the Legislature passed in 2023. CEEM supports the efforts of a Sustainable Aviation Fuel Hub and its efforts to decarbonize the aviation industry.