1.1 	A bill for an act
1.2 	relating to utilities; establishing geothermal energy
1.3 	incentives; amending Minnesota Statutes 2004, section
1.4 	297A.67, by adding a subdivision; proposing coding for
1.5 	new law in Minnesota Statutes, chapter 216B.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [216B.2426] GEOTHERMAL INCENTIVE.
1.8 		Subdivision 1.Credit. Each public utility, as defined
1.9 	in section 216B.02, shall offer each of its customers a minimum
1.10 	onetime credit of $200 per ton for geothermal heating and
1.11 	cooling equipment purchased after June 30, 2005.  For purposes
1.12 	of this section, "ton" is a term used by the heating and cooling
1.13 	industry referring to the cooling power of a ton of ice.
1.14 		Subd. 2.Quarterly notice. Each public utility shall
1.15 	inform its customers four times per year (1) that geothermal
1.16 	energy can substantially reduce their heating bills and carbon
1.17 	dioxide emissions and (2) that the incentive to purchase
1.18 	geothermal heating and cooling equipment is available under this
1.19 	section and a sales tax credit is available under section
1.20 	297A.67, subdivision 32, when geothermal equipment is purchased.
1.21 	
EFFECTIVE DATE. This section is effective for sales,
1.22 	purchases, and installations occurring on and after July 1, 2005.

1.23 	Sec. 2. Minnesota Statutes 2002, section 297A.67, is
1.24 	amended by adding a subdivision to read:
1.25 		Subd. 32.Geothermal equipment. The loop field
2.1 	collection system, the heat pump, and charges for installation
2.2 	of geothermal heating and cooling systems are exempt.
2.3 	
EFFECTIVE DATE. This section is effective for sales,
2.4 	purchases, and installations occurring on and after July 1, 2005.