Minnesota's Energy Agency and the Legislative Commission on Energy were created in 1974. A goal for the agency was the establishment of procedures and guidelines to be used in developing a plan for the management of Minnesota's energy future. The agency was organized along three divisional lines of responsibility: Conservation and Planning, Research, and Fuel Allocation.
In 1981, the duties and functions of the Energy Agency were transferred to the Department of Energy, Planning and Development by Laws of Minnesota 1981, chapter 356, section 64, codified at Minnesota Statutes 116J and effective July 1, 1981.