HF2498

Purpose of the Bill

The bill aims to establish a rebate program for geothermal heat exchange systems in Minnesota. It is designed to provide financial assistance to a variety of eligible entities, including businesses and nonprofits, that install these energy-efficient systems in commercial or multifamily buildings.

Main Provisions

• Rebate Program Establishment: The program offers rebates for installing geothermal heat exchange systems, a technology that uses the earth's stable temperature to provide heating and cooling.
• Eligible Applicants: Includes individuals, businesses, nonprofits, government entities, federally recognized Tribes in Minnesota, and religious institutions. Eligibility requires either receiving or applying for a federal geothermal heat exchange rebate.
• Application Requirements: Applicants must submit a form proving eligibility, ownership of the property, and completion of an energy audit by a certified technician. The audit must have taken place within 18 months prior to the application.
• Rebate Amount: The rebate will cover either 15% of the system's installation cost (capped at $100,000) or the net cost after accounting for other federal, state, or utility financial support.
• Prioritization: Preference will be given to applications from nonprofit or government-owned multifamily housing or commercial buildings designated as low-income rental properties.
• Funding and Management: A dedicated account is created to manage the rebates, funded by appropriations and managed by the commissioner. Funds will remain available until expended or will revert to a renewable development account after January 1, 2033.

Significant Changes

• The bill creates a new financial incentive program that aligns with federal initiatives for renewable energy systems, under the Inflation Reduction Act of 2022.
• Ensures that funds are appropriately divided to support both within and outside the areas served by specific public utilities.

Relevant Terms

geothermal heat exchange, rebate program, financial assistance, inflation reduction act, energy audit, renewable energy, low-income rental property