St. Paul – The Minnesota Department of Employment and Economic Development (DEED) today announced a $4.75 million grant round to support eligible Minnesota communities with power plants fueled by coal, natural gas or nuclear energy that are scheduled to close, have recently closed or are due to have their operating license expire soon.

The Energy Transition Grant program helps the state's "energy transition communities" minimize the negative consequences from closures and maximize opportunities for future economic growth and community wellbeing. It provides funds for research, planning and implementation activities designed to:

• assist workers at the plant find new employment, including worker retraining and developing small business startup skills;
• increase the community's property tax base;
• develop alternative economic development strategies to attract new employers to the community; and
• produce site readiness plans, land use studies and long-term economic planning and impact studies.

The grant program also activates Minnesota's Environmental Quality Board to reimburse some costs associated with helping communities address regulatory issues, provide consultation on technical and regulatory challenges and educate the community on transitions.

"As the state works toward achieving its goal of 100% clean electricity by 2040, we realize energy transition communities will face initial economic uncertainties as legacy power plants close," said DEED Commissioner Matt Varilek. "Empowering the growth of Minnesota's economy for everyone is DEED's mission. Our Energy Transition Office is dedicated to helping affected communities through transition as the state progresses toward a more sustainable energy system and a cleaner economy."

"We're proud to partner with local governments and power companies in energy transition communities and provide support to help them not only weather the transition but also benefit from the state's long-term clean economy goals," said Carla Vita, Director of DEED's Energy Transition Office.

Eligible communities can apply for grants of up to $1 million for fiscal year 2025 projects. Grant applications will be accepted and reviewed on a rolling basis through June 30, 2025 or until available funds are expended. DEED has released an ongoing call for applications for communities interested in the Energy Transition grant.