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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

This legislative bill seeks to establish a rebate program in Minnesota for the installation of geothermal heat exchange systems. It aims to promote energy efficiency and reduce reliance on traditional heating and cooling methods by providing financial incentives for the adoption of geothermal technology.

Main Provisions

  • Eligibility: The rebate program is available to a variety of entities including individuals, businesses, nonprofits, government entities, federally recognized Tribes in Minnesota, and religious institutions. To qualify, the applicant must demonstrate receipt of or application for a similar federal rebate under the Inflation Reduction Act of 2022 for commercial or multifamily buildings located in Minnesota.

  • Application Process: Applicants must submit an application with specific documentation, including proof of ownership of the building in which the system is installed, an energy audit conducted by certified personnel, and evidence of installation by a qualified contractor.

  • Rebate Amounts: Rebates are capped at the lower of 15% of the system costs or a maximum of $100,000 per project. The rebate amount considers other financial supports received from federal, state, or utility programs.

  • Prioritization: Preference is given to applications for installations in multifamily housing or commercial buildings owned by nonprofits or government entities identified as low-income rental properties.

  • Funding Mechanism: A dedicated geothermal heat exchange system rebate account will be established to fund the rebates, with money allocated from both the renewable development account and the general fund. This account will also support administrative costs and is subject to cancellation to the renewable development account by January 1, 2033, if unspent.

Significant Changes to Existing Law

  • This bill proposes coding for this rebate program within a new law chapter (216C.49) in Minnesota Statutes, requiring the state to develop and implement administrative procedures to manage the distribution of rebates.

Relevant Terms

geothermal heat exchange system, rebate program, energy efficiency, Inflation Reduction Act, commercial buildings, multifamily housing, low-income rental property, renewable development account, commissioner of commerce

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionReferred toEnergy, Utilities, Environment, and Climate
March 26, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the definition of low-income rental property under section 273.128 to prioritize certain applications for the geothermal rebate program.",
      "modified": []
    },
    "citation": "273.128"
  },
  {
    "analysis": {
      "added": [
        "Appropriation details referencing electric service area of the utility subject to section 116C.779."
      ],
      "removed": [],
      "summary": "This bill allocates funds for the geothermal heat exchange system rebate program, with a specific requirement for alignment with electric service areas governed by section 116C.779.",
      "modified": []
    },
    "citation": "116C.779"
  }
]

Sponsors