SF2900

SF2900 (Legislative Session 94 (2025-2026))

Geothermal heat exchange system rebate program establishment and appropriation

Related bill: HF2498

AI Generated Summary

Purpose of the Bill

The bill aims to establish a geothermal heat exchange system rebate program in Minnesota. This program is designed to encourage the installation of geothermal heating and cooling technologies in commercial and multifamily buildings, providing financial assistance to eligible applicants. The bill also allocates funds for this purpose and sets guidelines for the application and distribution of rebates.

Main Provisions

Eligibility: Applicants can include individuals, businesses, nonprofits, government entities, federally recognized Tribes, and religious institutions within Minnesota that have either received or applied for a federal rebate under the Inflation Reduction Act of 2022.
System Definition: A geothermal heat exchange system is defined as a mechanism that exchanges heat with the underground to provide heating or cooling.
Rebate Program Establishment: The program will be managed by the Minnesota Department of Commerce and is intended to offer financial assistance to those who install geothermal systems in qualifying buildings.
Application Requirements: To apply for the rebate, applicants must provide specific documentation such as evidence of eligibility, building ownership, a recent energy audit, and confirmation of installation by a qualified contractor.
Rebate Amounts: The maximum rebate is 15% of the system's costs, with a cap of $100,000 per project, or the total net cost after deducting other financial supports, whichever is less.
Prioritization: Applications from nonprofit or government-owned multifamily housing defined as low-income rental properties will be prioritized.
Account Management: A separate account is created within the state treasury to manage funds dedicated to this program, with all earnings credited back into the account. Unspent funds will stay in the account until used, except those unspent by January 1, 2033, which will transfer to the renewable development account.

Significant Changes to Existing Law

The bill proposes new legislation under Minnesota Statutes chapter 216C to establish and govern this geothermal rebate program. It specifies that appropriations will come from both the renewable development account and the general fund, explicitly dictating how these funds are distributed based on geographic eligibility criteria tied to electric service areas.

Relevant Terms

Geothermal heat exchange system
Rebate program
Inflation Reduction Act 2022
Eligible applicants
Energy audit
Low-income rental property
Renewable development account
Commissioner of Commerce

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	Senate	Floor	Action	Introduction and first reading
March 23, 2025	Senate	Floor	Action	Referred to	Energy, Utilities, Environment, and Climate
March 26, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Specifies funding to be allocated to the geothermal heat exchange system rebate program."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the renewable development account under Minnesota Statutes section 116C.779 for funding appropriations.",
      "modified": [
        "Residual funds on January 1, 2033, would cancel to the renewable development account."
      ]
    },
    "citation": "116C.779",
    "subdivision": "subdivision 1"
  }
]