SF4730

Purpose

• The bill would provide funding to build a geothermal energy system by awarding a grant to The Heights Community Energy. The money comes from Minnesota’s Renewable Development Account and would be used in fiscal year 2027.

Main Provisions

• Appropriation: $3,000,000 in fiscal year 2027 is appropriated.
• Source: Funds come from the Renewable Development Account.
• Recipient: The Commissioner of Commerce would issue the grant to The Heights Community Energy to construct the geothermal energy system.
• Purpose of funds: To finance the construction of a geothermal energy system that provides heating and cooling to buildings.
• Legal override: The appropriation is made “Notwithstanding” a specified provision of Minnesota law (116C.779, subdivision 1, paragraph j), meaning this funding would go forward despite that statute’s normal limits or restrictions.

Definition of Geothermal Energy System

• A geothermal energy system is defined as one or more heat pumps connected to piping embedded in the earth, which exchanges thermal energy with the earth and uses distribution and building mechanical systems to provide heating and cooling to one or more buildings.

Notable Legal Change

• The bill uses a Notwithstanding clause to bypass a particular provision of law (116C.779 subdivision 1, paragraph j) for this specific appropriation, enabling the grant to proceed even if the current statute would otherwise restrict or limit such funding.

Fiscal Year and Oversight

• Fiscal year: 2027 is specified for the appropriation.
• Oversight/Administration: The grant would be administered by the Commissioner of Commerce.

Significance

• This is a targeted investment to support a geothermal energy project, expanding the use of heat pump technology linked to earth-embedded piping to provide heating and cooling for buildings.

Relevant Terms geothermal energy system, heat pumps, piping embedded in the earth, thermal energy, heating and cooling, The Heights Community Energy, Commissioner of Commerce, grant, Renewable Development Account, Minnesota Statutes 116C.779, Notwithstanding, fiscal year 2027, appropriation