Lawmakers refer bill to rebalance private‑activity bond pools to Capital Investment

Representative Anderson introduced House File 2252, a proposal to modernize Minnesotas private activity bond volume allocation so that underused small‑issue/manufacturing capacity is shifted to the public‑facilities pool. Paul Donna, a public‑finance professional with DA Davidson, told the committee the change would be budget‑neutral at the state level and would not increase the total federal volume cap; rather, it would realign allocations to match current demand.

Witnesses from agriculture and industry supported the reallocation. Lucas Sjostrom, executive director of the Minnesota Milk Producers Association, urged the change as a way to unlock tax‑exempt financing for dairy processing and waste‑to‑energy projects. Brian Warner of the Minnesota Biofuels Association told the committee that additional public‑facilities capacity would help ethanol and renewable natural gas producers invest in decarbonization equipment.

Several members questioned jurisdiction and potential effects on housing finance. Supporters said the bill preserves the housing pool as the top priority in the unified pool and noted that federal tax changes have improved housing leverage, but members asked staff to verify impacts on affordable and workforce housing. After discussion, the committee voted to refer House File 2252, as amended, to the Capital Investment Committee without recommendation so subject matter committees can review technical housing and capital implications.

The referral sends the bill to lawmakers with jurisdiction over capital projects and housing for additional hearings and any technical changes.