North Dakota

The North Dakota Legislature does not meet in even-numbered years. However, the North Dakota legislators will be called back into special session in January to address spending of a $500 million grant for rural health care. It is highly unlikely that energy policy would be discussed during the special session. Meanwhile, the state will continue working through its interim committee process, which includes some energy policy. The interim Advanced Nuclear Energy Committee is continuing to discuss advanced nuclear energy and its potential place in the state. Likewise, the interim Energy Development and Transmission committee continues to review the impacts of large loads (data centers) on the state, the accelerating electric energy demand, and the need for major transmission buildouts.

South Dakota

The topic most likely to consume debate during the 2026 South Dakota legislative session is property tax reform. Several proposals came from the summer study committee and additional ones are likely to be introduced by legislators; all in the hope – no matter how lofty – to find a solution that will address the concerns of property taxpayers. It is a topic that will likely be debated from the opening week to the closing days. Other issues that will also top legislative minds include education funding, data center tax incentives, prohibition on data centers and tax-increment financing. We also expect that investor-owned utilities will bring forth a proposal to mitigate wildfire liability. If wildfire mitigation legislation like that adopted in North Dakota were introduced, Missouri River Energy Services (MRES) would be supportive. Finally, given the recent Public Utilities Commission ruling requiring the proposed Crown Ridge storage facility to obtain a permit, it is probable there will be legislation clarifying the regulation and permitting of large-scale storage facilities.

Meanwhile, Gov. Larry Rhoden has announced his intention to seek re-election and Speaker Jon Hansen (R–Dell Rapids) is also running for governor. This race (as well as other races) will lead to legislative positioning during session among current seated lawmakers.

Iowa

The Iowa Legislature will gavel in on the second Monday in January (Jan. 12 this session), kicking off what’s expected to be a busy session. Even though it’s the second year of the general assembly, there will still be quite a few new faces at the Capitol due to five special elections held over the past year and new leadership in both the Senate and the House.

Property tax reform is expected to take center stage this year after lawmakers fell short of agreement last year. This session the governor, Senate and House are all expected to roll out their own tax proposals in hopes of finding common ground. Eminent domain is another topic guaranteed to be a priority for many. The issue has stayed in the spotlight since last year’s end-of-session drama, when the governor ultimately vetoed a bill that reached her desk. Other energy issues expected to return this year include developer-led community solar projects, deregulation for large energy users led by data centers and continued interest in integrated resource planning.

This year’s session is scheduled to go for 100 days, concluding on April 21. But if recent history is any indication, lawmakers may stick around a little longer, working past the deadline without per diem pay.

Minnesota

The Minnesota Legislature will not meet until Feb. 17. The key to this session is the tie in the House. Even with two special elections coming up in January, it is doubtful that the tie will be broken. As a result, unless there is bipartisan support in the House, it is unlikely a bill will pass. The Senate continues with a one-vote Democratic-Farmer-Labor party (DFL) majority.

The other potential side issue this year is access to legislators in St. Paul. House members will again be in the Centennial Office Building pending the refurbishing of the House State Office Building. Access to the legislative floors in the Centennial will require an appointment and an escort. Meanwhile, after the events of last summer, the Capitol and the Minnesota Senate Building may have additional security as well.

Two issues that have some bipartisan support, at least in the Senate, are the repeal of the state’s nuclear moratorium and reform of net metering. The sticking point for each of these issues is the House. In 2025, DFL members of House Energy Committee opposed changes both to the rates paid by cooperatives and municipalities for net metering and opposed the repeal of the nuclear moratorium. Without buy-in from these key committee members, it is unlikely any House DFL members would break ranks and vote to support the changes. Additionally, several lawmakers have indicated that without tribal support, they will not vote in favor of removing the nuclear moratorium.

One issue that may arise is third-party sales to solar customers. A solar developer is considering bringing legislation to allow solar developers to use a sales model that would allow them to install panels on homes and then sell the power to the homeowner on a kilowatt-hour basis. It is also possible that their bill would allow aggregation of rooftop power to sell to utilities or directly into the market.

Finally, there will be a lot of time spent discussing issues that quite frankly may not pass this session, but will set up debates for post-election 2027. One issue will be data centers. Some see data centers as good economic development opportunities and want to bring them to Minnesota with incentives and clear siting protocols. Other legislators see data centers as potentially gutting the ability to comply with the 2040 carbon-free standard (CFS) and renewable energy standard (RES) mandates and would want to place specific environmental requirements on data centers in Minnesota.

Likewise, legislators may bring legislation to amend the CFS or RES or add new electric energy policies. These policy proposals could include virtual power plants, implementing storage mandates, requiring hourly retirement of renewable energy certificates and adding further requirements to the CFS or RES. Again, these approaches are unlikely to pass in 2026 but may lay the foundation for debate in 2027.

Join MRES

The MRES South Dakota Legislative Power Lunch will be held on Wednesday, Feb. 4, 2026, in Pierre, South Dakota. Members are welcome to join at the Capitol in promoting the value of municipal power.