Minnesota Legislature
SF 4849
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/12/2024 09:16am
Current Version - as introduced
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A bill for an act
relating to energy; establishing a program to award grants to political subdivisions
to assess the feasibility of installing geothermal energy systems; 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.
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[216C.47] GEOTHERMAL PLANNING GRANTS.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Eligible applicant" means a county, city, town, or the Metropolitan Council.
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(c) "Geothermal energy system" means a system that heats and cools one or more
buildings by using the constant temperature of the earth as both a heat source and heat sink
and a heat exchanger consisting of an underground closed loop system of piping containing
a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
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(1) a bored geothermal heat exchanger, as defined in section 103I.005;
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(2) a groundwater thermal exchange device, as defined in section 103I.005; and
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(3) a submerged closed loop heat exchanger, as defined in section 103I.005.
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new text begin Subd. 2. new text end
new text begin Establishment. new text end
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A geothermal planning grant program is established in the
department to provide financial assistance to political subdivisions to examine the technical
and economic feasibility of installing geothermal energy systems.
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new text begin Subd. 3. new text end
new text begin Account established. new text end
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(a) The geothermal planning grant 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 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 June 30, 2027. The commissioner
must manage the account.
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(b) Money in the account is appropriated to the commissioner to (1) award geothermal
planning grants to eligible applicants, and (2) reimburse the reasonable costs incurred by
the department to administer this section.
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new text begin Subd. 4. new text end
new text begin Application process. new text end
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An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern the application and grant
award process. The commissioner may contract with a third party to conduct some or all of
the program's operations.
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new text begin Subd. 5. new text end
new text begin Grant awards. new text end
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(a) A grant awarded under this process may be used to pay the
total cost of the activities eligible for funding under subdivision 6, up to a limit of $150,000.
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(b) The commissioner must endeavor to award grants to eligible applicants in all regions
of Minnesota.
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new text begin Subd. 6. new text end
new text begin Eligible grant expenditures. new text end
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Activities that may be funded with a grant awarded
under this section include:
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(1) analysis of the heating and cooling demand of the building or buildings that consume
energy from the geothermal energy system;
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(2) evaluation of equipment that could be combined with a geothermal energy system
to meet the building's heating and cooling requirement;
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(3) analysis of the geologic conditions of the earth in which a geothermal energy system
operates, including the drilling of one or more test wells to characterize geologic materials
and to measure properties of the earth and aquifers that impact the feasibility of installing
and operating a geothermal energy system; and
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(4) preparation of a financial analysis of the project.
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new text begin Subd. 7. new text end
new text begin Contractor and subcontractor requirements. new text end
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Contractors and subcontractors
performing work funded with a grant awarded under this section must have experience
installing geothermal energy systems.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$....... in fiscal year 2025 is appropriated from the renewable development account established
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award geothermal planning grants under Minnesota Statutes, section 216C.47, and to
reimburse the costs of the department to administer Minnesota Statutes, section 216C.47.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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