Minnesota HVAC Regulatory Oversight for 2026: Complete Guide

Understanding Minnesota HVAC regulatory oversight is essential for contractors, businesses, and homeowners navigating the state's energy landscape. Minnesota's regulatory environment is unique because it does not require state-level HVAC licensing, instead leaving licensing to local municipalities. This comprehensive guide covers everything you need to know about Minnesota HVAC regulations heading into 2026.

The regulatory oversight framework in Minnesota affects how HVAC contractors operate, what utility rates consumers pay, and how energy infrastructure develops across the state. Whether you're an HVAC contractor seeking to understand local requirements or a business evaluating Minnesota's energy market, understanding these regulatory structures is critical for success.

Minnesota Public Utilities Commission: Primary Regulatory Oversight

The Minnesota Public Utilities Commission (PUC) serves as the primary regulatory body for Minnesota's investor-owned utilities. The PUC regulates electricity, natural gas, and telephone services, ensuring Minnesotans have safe, reliable, and affordable utility services. The PUC was established in 1980 as an independent state agency, evolving from earlier railroad and warehouse commissions dating to 1871.

The Minnesota PUC is composed of five commissioners appointed by the Governor to six-year staggered terms, confirmed by the Minnesota State Senate. By law, no more than three commissioners may be from the same political party, and at least one must reside outside the seven-county metropolitan area at the time of appointment.

The current commissioners include: Chair Katie Sieben (appointed January 2017, named Chair 2019, reappointed 2023, term expires January 1, 2029), Vice Chair Joseph K. Sullivan (term expires January 5, 2026), Commissioner Hwikwon Ham (appointed January 3, 2024, term expires January 3, 2028), Commissioner Audrey Partridge (term expires January 6, 2031), and Commissioner John Tuma (Republican, term expires January 4, 2027).

Chair Sieben is incoming second vice president of NARUC and previously served 14 years in the Minnesota Legislature. Commissioner Ham has 20+ years experience in state government energy regulation and was formerly supervisor for the PUC's regional energy program. Commissioner Tuma was recently elected president of Southwest Power Pool's Regional State Committee.

The PUC's regulatory authority in Minnesota includes:

Three investor-owned electric utilities (Xcel Energy, Minnesota Power, Otter Tail Power Company), natural gas utilities (CenterPoint Energy, Minnesota Energy Resources, Xcel Energy, Greater Minnesota Gas, Great Plains Natural Gas), certificates of need for large energy facilities, site and route permits for transmission lines and pipelines, and telecommunications services.

The PUC does not regulate cooperative utilities (whose rates are set by member-elected boards) or municipal utilities (governed by city councils). Dakota Electric Association is the only electric cooperative whose rates are PUC-regulated.

Agency: Minnesota Public Utilities Commission (PUC)
Address: 121 7th Place East, Suite 350, Saint Paul, MN 55101
Phone: (651) 296-0406 or 1-800-657-3782
Email: consumer.puc@state.mn.us
Website: mn.gov/puc

Understanding Minnesota's Regulatory Environment for 2026

The regulatory environment in Minnesota is characterized by aggressive clean energy goals and ongoing attention to affordability. Minnesota has committed to a carbon-free energy transition, and the PUC reviews Integrated Resource Plans from utilities to ensure adequate supply while adhering to environmental goals.

Xcel Energy, serving 1.3 million electricity customers in Minnesota, has the highest residential electricity rates in the state at approximately 15.60 cents per kWh. The company has been shutting off power to customers in record numbers following the COVID-19 pandemic, with 52,549 households disconnected in 2024. The PUC and consumer advocates are engaged in ongoing discussions about rate affordability and shut-off policies.

Minnesota Power serves approximately 145,000 customers in northern Minnesota, and Otter Tail Power serves about 62,000 Minnesota customers with some of the lowest rates in the region. The PUC sets annual reliability goals for investor-owned utilities benchmarked against IEEE national reliability data.

Minnesota's natural gas customers can participate in choice programs through Consumers Energy, DTE Gas, Michigan Gas Utilities, and SEMCO Energy. CenterPoint Energy serves over 800,000 natural gas customers in Minnesota.

Minnesota HVAC Licensing Requirements for 2026

Minnesota does not have state-level HVAC licensing requirements. Instead, the state requires mechanical contractors to file a $25,000 bond with the Department of Labor and Industry (DLI) to contract for HVAC work. Individual licensing is handled at the municipal level, with cities like Minneapolis and St. Paul requiring certificates of competency or trade licenses.

State-Level Requirements

Mechanical Contractor Bond: Minnesota Statute § 326B.197 requires anyone who installs gas piping, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration (G/HVACR) equipment to post a $25,000 bond and file with the Minnesota Department of Labor and Industry, Construction Codes and Licensing Division.

Bond Fee: $100 filing fee, valid for two years. Renewal fee is $100.

Insurance Requirements: Contractors must provide proof of public liability and workers' compensation insurance. Cities may have additional insurance requirements.

There is no state license requirement for individual employees of mechanical contractors. However, cities may require licensure or competency cards for workers performing mechanical work.

Minneapolis and St. Paul Licensing

The Twin Cities both require HVAC workers to be certified before being allowed to work. Minneapolis Construction Code Service and St. Paul Department of Safety and Inspection issue certificates of competency (comp cards) at journey and master levels. The cities have reciprocal agreements, so certification in one city allows immediate corresponding certification in the other without retesting.

HVAC-Related Classifications in Minneapolis/St. Paul:

Refrigeration systems installer, Gas fitter, Warm air heating, Air conditioning, Ventilation, Combined trades license (requires competency card for each specialization).

Journeyperson Requirements:

Four years of trade-related training or schooling (equivalent to 576 hours), Four years of experience on the job or apprenticeship in related trade. Alternative: St. Paul may allow 7 years of work experience with passing exam score in lieu of educational requirement.

Master Requirements:

One year as a licensed journeyperson in HVAC-related trade, Two notarized signatures from master HVAC contractors, Minimum 5 years total applicable HVAC work experience.

Examination: Certificate of Competency exams or HVAC trade exams are typically open book with 70-100 multiple choice questions, lasting 3-4 hours. Passing score is 70% or 75% depending on journeyman or master level.

Exam Fees: $55 for journeyman exams, $82.50 for master exams (non-refundable, check only).

License Fees: St. Paul charges $168 annually for a trade license; Minneapolis residential contractor license is $180.

Insurance (Minneapolis): $100,000 per occurrence and $300,000 aggregate for bodily injury and property damage.

Insurance (St. Paul): $500,000 for bodily injury and property damage combined.

Bond Requirements: HVAC Class A in Minneapolis requires State of MN $25,000 bond; HVAC Class B requires $10,000 city bond.

Other Cities

Rochester and St. Cloud also have their own certificate of competency requirements. Contractors should check with local jurisdictions before performing work, as requirements vary significantly by municipality.

Additional Requirements

EPA Section 608 Certification: Required for all technicians working with refrigerants.

Minnesota Mechanical Code: The Minnesota State Building Code is the standard for construction statewide. Chapter 1346 governs installation and maintenance of HVAC systems, consisting of the 2012 International Mechanical and Fuel Gas Codes with state amendments.

Minnesota Utility Directory for HVAC Contractors

HVAC contractors in Minnesota work closely with utilities for rebate programs, energy efficiency initiatives, and service connections. Minnesota has a mix of investor-owned utilities, cooperatives, and municipal utilities.

Investor-Owned Electric Utilities

Natural Gas Utilities

Electric Cooperatives

Minnesota has approximately 50 electric cooperatives serving around 700,000 households, covering over 80% of the state's geography. Major cooperatives include:

Dakota Electric Association is the only electric cooperative in Minnesota with PUC-regulated rates rather than member-regulated rates.

Municipal Utilities

Over 100 Minnesota communities receive electric or gas service through municipal utilities. Rochester is the state's largest municipal utility. Municipal rates are regulated by city councils or locally appointed commissions.

• Does Minnesota require a state HVAC license?
  No. Minnesota does not have state-level HVAC licensing. However, mechanical contractors must file a $25,000 bond with the Department of Labor and Industry to perform HVAC work, and many cities require local licenses or competency cards.
• What is the $25,000 mechanical contractor bond?
  Minnesota Statute § 326B.197 requires businesses contracting to perform gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work to post a $25,000 bond with DLI. The filing fee is $100, valid for two years.
• Do I need a license to work in Minneapolis or St. Paul?
  Yes. Both cities require certificates of competency (comp cards) at the journeyperson or master level for HVAC work. The cities have reciprocal agreements, so certification in one allows immediate certification in the other.
• What are the requirements for a journeyperson comp card in the Twin Cities?
  Four years of trade-related training (576 hours) and four years of experience or apprenticeship. Alternatively, St. Paul may accept 7 years of experience with a passing exam score.
• How much does HVAC licensing cost in Minnesota?
  The state bond filing fee is $100 (two-year validity). Exam fees are $55 for journeyman and $82.50 for master exams. License fees vary by city: St. Paul charges $168 annually, Minneapolis residential contractor is $180.
• Is there continuing education required?
  There are no state-level continuing education requirements for mechanical contractors in Minnesota. Check with local jurisdictions for any local requirements.
• Who regulates electric utilities in Minnesota?
  The Minnesota Public Utilities Commission regulates investor-owned electric and gas utilities. Cooperative utilities are member-regulated (except Dakota Electric), and municipal utilities are governed by city councils.
• What are the major electric utilities in Minnesota?
  Xcel Energy (~1.3 million customers, highest rates), Minnesota Power (~145,000 customers in northern MN), and Otter Tail Power (~62,000 MN customers, lowest rates).
• Do I need EPA certification in Minnesota?
  Yes. EPA Section 608 certification is federally required for anyone working with refrigerants, regardless of state or local licensing requirements.
• What building code governs HVAC work in Minnesota?
  The Minnesota Mechanical Code (Chapter 1346) consists of the 2012 International Mechanical and Fuel Gas Codes with Minnesota amendments. This code is enforced by local building officials.

Resources for Minnesota HVAC Contractors

DLI Construction Codes and Licensing: www.dli.mn.gov/mechanical-contractor-bond

Minneapolis Business Licenses: minneapolismn.gov/business-licenses

St. Paul Licenses and Permits: stpaul.gov/safety-inspections

Minnesota Public Utilities Commission: mn.gov/puc

Citizens Utility Board of Minnesota: cubminnesota.org