HF 2771

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/15/2023 12:22pm

A bill for an act
relating to energy; establishing a program in the Department of Commerce to
award rebates for the purchase and installation of residential heat pumps;
establishing a program to train heat pump installers; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 216C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216C.45] RESIDENTIAL HEAT PUMP REBATE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible applicant" means a person who provides evidence to the commissioner's
satisfaction demonstrating that the person has received or has applied for a heat pump rebate
available from the federal Department of Energy under the Inflation Reduction Act of 2022,
Public Law 117-189.
new text end

new text begin (c) "Heat pump" means a cold climate rated air-source heat pump composed of (1) a
mechanism that heats and cools indoor air by transferring heat from outdoor or indoor air
using a fan, (2) a refrigerant-filled heat exchanger, and (3) an inverter-driven compressor
that varies the pressure of the refrigerant to warm or cool the refrigerant vapor.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A residential heat pump rebate program is established in the
Department of Commerce to provide financial assistance to eligible applicants that purchase
and install a heat pump in the applicant's Minnesota residence.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a rebate under this section must be made
to the commissioner on a form developed by the commissioner. The application must be
accompanied by documentation, as required by the commissioner, demonstrating that:
new text end

new text begin (1) the applicant is an eligible applicant;
new text end

new text begin (2) the applicant owns the Minnesota residence in which the heat pump is to be installed;
new text end

new text begin (3) the applicant has had an energy audit conducted of the residence in which the heat
pump is to be installed within the last 18 months by a person with a Building Analyst
Technician certification issued by the Building Performance Institute, Inc., or an equivalent
certification, as determined by the commissioner;
new text end

new text begin (4) either:
new text end

new text begin (i) the applicant has installed in the applicant's residence, by a contractor with an Air
Leakage Control Installer certification issued by the Building Performance Institute, Inc.,
or an equivalent certification, as determined by the commissioner, the amount of insulation
and the air sealing measures recommended by the auditor; or
new text end

new text begin (ii) the auditor has otherwise determined that the amount of insulation and air sealing
measures in the residence are sufficient to enable effective heat pump performance;
new text end

new text begin (5) the applicant has purchased a heat pump of the capacity recommended by the auditor
or contractor, and has had the heat pump installed by a contractor with sufficient training
and experience in installing heat pumps, as determined by the commissioner; and
new text end

new text begin (6) the total cost to purchase and install the heat pump in the applicant's residence.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award processes.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amount. new text end

new text begin A rebate awarded under this section must not exceed the lesser
of:
new text end

new text begin (1) $4,000; or
new text end

new text begin (2) the total cost to purchase and install the heat pump in an eligible applicant's residence
net of the rebate amount received for the heat pump from the federal Department of Energy
under the Inflation Reduction Act of 2022, Public Law 117-189.
new text end

new text begin Subd. 5. new text end

new text begin Assisting applicants. new text end

new text begin The commissioner must issue a request for proposal
seeking an entity to serve as an energy coordinator to interact directly with applicants and
potential applicants to:
new text end

new text begin (1) explain the technical aspects of heat pumps, energy audits, and energy conservation
measures, and the energy and financial savings that can result from their implementation;
new text end

new text begin (2) identify federal, state, and utility programs available to homeowners to reduce the
costs of energy audits, energy conservation, and heat pumps;
new text end

new text begin (3) explain the requirements and scheduling of the application process;
new text end

new text begin (4) provide access to certified contractors who can perform energy audits, install
insulation and air sealing measures, and install heat pumps; and
new text end

new text begin (5) conduct outreach to make potential applicants aware of the program.
new text end

new text begin Subd. 6. new text end

new text begin Contractor training and support. new text end

new text begin The commissioner must issue a request for
proposal seeking an entity to develop and organize programs to train contractors with respect
to the technical aspects and installation of heat pumps in residences. The training curriculum
must be at a level sufficient to provide contractors who complete training with the knowledge
and skills necessary to install heat pumps to industry best practice standards, as determined
by the commissioner. Training programs must: (1) be accessible in all regions of the state;
and (2) provide mentoring and ongoing support, including continuing education and financial
assistance, to trainees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $14,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of commerce to implement the heat pump rebate program under Minnesota Statutes, section
216C.44, and to reimburse the reasonable costs incurred by the department to administer
the program. Of this amount:
new text end

new text begin (1) $10,000,000 is to award rebates under Minnesota Statutes, section 216C.44,
subdivision 4;
new text end

new text begin (2) $2,000,000 is to contract with an energy coordinator under Minnesota Statutes,
section 216C.44, subdivision 5; and
new text end

new text begin (3) $2,000,000 is to conduct contractor training and support under Minnesota Statutes,
section 216C.44, subdivision 6.
new text end