Housing First Minnesota recently submitted formal comments to the Minnesota Public Utilities Commission (PUC) regarding proposed changes to the state’s natural gas utility regulations (Docket No. G-999/CI-21-565). These proposals are part of Minnesota’s broader strategy to reduce greenhouse gas emissions.
While we support efforts to build a more sustainable energy future, we emphasized a critical point: climate policy must not make Minnesota’s housing crisis worse.
“Minnesota cannot afford to address one crisis while worsening another,” said Mark Foster, Vice President of Legislative & Political Affairs.
Key Issues We Raised
Affordability Must Be a Priority
Any policy changes that raise construction or operational costs—like mandated electrification or restricted gas connections—could make homeownership even more out of reach, especially for first-time and moderate-income buyers.
Natural Gas Remains Essential in Cold Climates
Minnesota winters are brutal. Natural gas is the most reliable and cost-effective option for meeting building code heating requirements. Electric systems like heat pumps currently struggle in sub-zero temperatures, potentially requiring costly backup systems.
Builders and Buyers Need Fuel Choice
Eliminating access to natural gas before scalable, affordable alternatives are available limits flexibility and drives up costs. As Foster noted in our comments, “A successful transition must be driven by innovation and economic readiness, not rigid mandates.”
Technology and Infrastructure Aren’t Ready Yet
Emerging systems like electric thermal networks and alternative fuels hold promise, but mass deployment isn’t feasible in the short term. Policy shifts must be phased in based on proven readiness—not assumptions.
Energy Equity Must Include Housing Access
We support the Commission’s commitment to equity. But true energy equity must also consider whether families can afford to buy a home.
Our Recommendations to the Commission
We urged the Commission to:
- Maintain fuel choice in new home construction
- Avoid regulatory changes that increase housing costs
- Preserve long-standing policies that support affordability (like gas line extension cost-sharing)
- Align policy changes with technological readiness
- Evaluate all proposals for their impact on housing supply and affordability
- Involve housing stakeholders in future policy development
A Balanced Path Forward
We’re committed to working with the Commission, utilities, and energy stakeholders to find solutions that meet Minnesota’s climate goals without making housing less attainable.
