as introduced - 93rd Legislature (2023 - 2024) Posted on 03/15/2023 12:22pm
Engrossments | ||
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Introduction | Posted on 03/09/2023 |
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:
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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 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.
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(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.
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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.
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(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:
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(1) the applicant is an eligible applicant;
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(2) the applicant owns the Minnesota residence in which the heat pump is to be installed;
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(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;
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(4) either:
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(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
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(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;
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(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
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(6) the total cost to purchase and install the heat pump in the applicant's residence.
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(b) The commissioner must develop administrative procedures governing the application
and rebate award processes.
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A rebate awarded under this section must not exceed the lesser
of:
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(1) $4,000; or
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(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.
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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:
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(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;
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(2) identify federal, state, and utility programs available to homeowners to reduce the
costs of energy audits, energy conservation, and heat pumps;
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(3) explain the requirements and scheduling of the application process;
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(4) provide access to certified contractors who can perform energy audits, install
insulation and air sealing measures, and install heat pumps; and
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(5) conduct outreach to make potential applicants aware of the program.
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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.
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This section is effective the day following final enactment.
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$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:
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(1) $10,000,000 is to award rebates under Minnesota Statutes, section 216C.44,
subdivision 4;
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(2) $2,000,000 is to contract with an energy coordinator under Minnesota Statutes,
section 216C.44, subdivision 5; and
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(3) $2,000,000 is to conduct contractor training and support under Minnesota Statutes,
section 216C.44, subdivision 6.
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