HF 4689

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 02:44pm

A bill for an act
relating to energy; establishing a geothermal heat exchange system rebate program;
establishing an account; 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.47] GEOTHERMAL HEAT EXCHANGE SYSTEM 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, business, nonprofit, government entity, or
religious institution that provides evidence to the commissioner's satisfaction demonstrating
the person has received or has applied for a geothermal heat exchange system rebate available
from the United States Department of the Treasury under the Inflation Reduction Act of
2022, Public Law 117-189, for a building located in Minnesota.
new text end

new text begin (c) "Geothermal heat exchange system" means a heating or cooling exchange mechanism,
including a heat pump, composed of a mechanism to collect heat from underground utilizing
a series of connected pipes.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A geothermal heat exchange system rebate program is
established in the department to provide financial assistance to eligible applicants that
purchase and install geothermal heat exchange technology in the applicant's building.
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 building in which the geothermal heat exchange system is to
be installed;
new text end

new text begin (3) an energy audit of the building in which the geothermal heat exchange system is to
be installed has been conducted within the 18 months preceding the application date 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) the applicant has purchased a geothermal heat exchange system with the capacity
recommended by the auditor or contractor, and has had the geothermal heat exchange system
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 (5) the total cost to purchase and install the geothermal heat exchange system, including
the associated geothermal loop installed and located outside the building, in the applicant's
building.
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 (c) The commissioner may modify program requirements under this section if necessary
to align with comparable federal programs administered by the department under the Inflation
Reduction Act of 2022, Public Law 117-189.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amount. new text end

new text begin (a) A rebate awarded under this section must not exceed the
lower of:
new text end

new text begin (1) for a single-family home: (i) $6,000; or (ii) the total cost to purchase and install the
geothermal heat exchange system in an eligible applicant's building, net of the rebate amount
the applicant received for the geothermal heat exchange system from the United States
Department of the Treasury under the Inflation Reduction Act of 2022, Public Law 117-18;
or
new text end

new text begin (2) for multifamily housing and commercial buildings: (i) five percent of all system
costs, not to exceed $50,000 for a single project; or (ii) the total cost to purchase and install
the geothermal heat exchange system in an eligible applicant's building, net of the rebate
amount the applicant received for the geothermal heat exchange from the United States
Department of the Treasury under the Inflation Reduction Act of 2022, Public Law 117-18.
new text end

new text begin Subd. 5. new text end

new text begin Prevailing wage. new text end

new text begin A project with a total system capacity over 284 tons that
receives financial assistance under this section is subject to the requirement to pay the
prevailing wage rate, as defined in section 177.42, and the requirements and enforcement
provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
new text end

new text begin Subd. 6. new text end

new text begin Prioritization. new text end

new text begin When evaluating applications under this program, the
commissioner must give priority to applications that:
new text end

new text begin (1) for single family homes, are not currently served by a natural gas utility;
new text end

new text begin (2) are located in environmental justice areas, as defined in section 115A.03, subdivision
10b; and
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new text begin (3) have submitted a workforce plan demonstrating the intention to use registered
apprenticeships.
new text end

new text begin Subd. 7. new text end

new text begin Account established. new text end

new text begin (a) The geothermal heat exchange system rebate account
is established as a separate account in the special revenue fund in the state treasury. The
commissioner must credit to the account appropriations and transfers made to the account.
Earnings, including interest, dividends, and any other earnings arising from assets of the
account, must be credited to the account. Money remaining in the account at the end of a
fiscal year does not cancel to the general fund, but remains in the account until expended.
The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of this
section and to reimburse the reasonable costs of the department to administer this section.
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 $....... in fiscal year 2025 is appropriated from the general fund to the geothermal heat
exchange system under Minnesota Statutes, section 216C.47, subdivision 7. This
appropriation does not cancel, but remains available until December 31, 2032. Any money
remaining in the account on January 1, 2033, cancels to the general fund.
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