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HF2498 (Legislative Session 94 (2025-2026))

Geothermal heat exchange system rebate program established, and money appropriated.

Related bill: SF2900

AI Generated Summary

Purpose of the Bill

The bill aims to establish a rebate program to encourage the installation of geothermal heat exchange systems in buildings located in Minnesota. This initiative seeks to promote energy efficiency and reduce reliance on traditional heating and cooling systems by providing financial incentives to eligible parties.

Main Provisions

  • Establishment of the Program: A geothermal heat exchange system rebate program will be set up under Minnesota Statutes, chapter 216C. The program will offer rebates to eligible individuals or entities who install geothermal heat exchange systems.

  • Eligibility: To qualify for a rebate, applicants can be individuals, businesses, nonprofits, government entities, federally recognized Tribes in Minnesota, or religious institutions. They must apply for or have received a relevant federal rebate and be installing the system in a Minnesota building.

  • Application Requirements: Applicants must provide proof, through a specific process, that includes ownership of the building, an energy audit performed within 18 months prior to application, professional installation of the system, and details of the installation costs.

  • Rebate Details: The rebate will not exceed the lesser of 15% of the system’s total costs or $100,000 per project. The rebate will be adjusted by any other financial support from federal, state, or utility programs.

  • Prioritization: Applications for multifamily housing or commercial buildings owned by nonprofits or government entities, especially those classified as low-income rental properties, will be given priority.

  • Funding: The bill establishes a separate account for the rebate program, where appropriations and other financial earnings will be managed. Funds are allocated for grants and administrative costs until January 1, 2033.

Significant Changes

  • The bill introduces a new rebate program specifically for geothermal systems, which is a departure from traditional energy incentives that might focus on solar or wind power.

  • It creates a new statutory provision under Minnesota Statutes, chapter 216C, dedicating specific financial appropriations from the renewable development account and the general fund to support this initiative.

Relevant Terms

  • Geothermal heat exchange system
  • Rebate program
  • Energy efficiency
  • Inflation Reduction Act
  • Renewable development account
  • Low-income rental property

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toEnergy Finance and Policy
March 23, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Priority to projects meeting low-income rental property criteria."
      ],
      "removed": [],
      "summary": "This section modifies prioritization criteria for rebate applications, linking them to low-income rental property definitions under section 273.128.",
      "modified": [
        "Changed evaluation criteria for application prioritization."
      ]
    },
    "citation": "273.128",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Appropriates funds to geothermal rebate program."
      ],
      "removed": [],
      "summary": "This section references the funding source for the rebate program, appropriating funds from the renewable development account governed by section 116C.779, subdivision 1.",
      "modified": [
        "Modified appropriation levels and scope based on location criteria."
      ]
    },
    "citation": "116C.779",
    "subdivision": "subdivision 1"
  }
]

Sponsors