Minnesota SF 4686: Geothermal heat exchange system rebate program and account establishment and appropriation

Bill Text

1.1 A bill for an act​
1.2 relating to energy; establishing a geothermal heat exchange system rebate program;​
1.3 establishing an account; appropriating money; proposing coding for new law in​
1.4 Minnesota Statutes, chapter 216C.​
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. [216C.47] GEOTHERMAL HEAT EXCHANGE SYSTEM REBATE​
1.7 PROGRAM.​
1.8 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have​
1.9 the meanings given.​
1.10 (b) "Eligible applicant" means a person, business, nonprofit, government entity, or​
1.11 religious institution that provides evidence to the commissioner's satisfaction demonstrating​
1.12 the person has received or has applied for a geothermal heat exchange system rebate available​
1.13 from the United States Department of the Treasury under the Inflation Reduction Act of​
1.14 2022, Public Law 117-189, for a building located in Minnesota.​
1.15 (c) "Geothermal heat exchange system" means a heating or cooling exchange mechanism,​
1.16 including a heat pump, composed of a mechanism to collect heat from underground utilizing​
1.17 a series of connected pipes.​
1.18 Subd. 2.Establishment.A geothermal heat exchange system rebate program is​
1.19 established in the department to provide financial assistance to eligible applicants that​
1.20 purchase and install geothermal heat exchange technology in the applicant's building.​
1​Section 1.​
24-06374 as introduced​02/21/24 REVISOR RSI/HL​
SENATE​
STATE OF MINNESOTA​
S.F. No. 4686​NINETY-THIRD SESSION​
(SENATE AUTHORS: MCEWEN and Xiong)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​12045​03/07/2024​
Referred to Energy, Utilities, Environment, and Climate​
Author added Xiong​12454​03/20/2024​

2.1 Subd. 3.Application.(a) An application for a rebate under this section must be made​
2.2 to the commissioner on a form developed by the commissioner. The application must be​
2.3 accompanied by documentation, as required by the commissioner, demonstrating that:​
2.4 (1) the applicant is an eligible applicant;​
2.5 (2) the applicant owns the building in which the geothermal heat exchange system is to​
2.6 be installed;​
2.7 (3) an energy audit of the building in which the geothermal heat exchange system is to​
2.8 be installed has been conducted within the 18 months preceding the application date by a​
2.9 person with a building analyst technician certification issued by the Building Performance​
2.10 Institute, Inc., or an equivalent certification, as determined by the commissioner;​
2.11 (4) the applicant has purchased a geothermal heat exchange system with the capacity​
2.12 recommended by the auditor or contractor, and has had the geothermal heat exchange system​
2.13 installed by a contractor with sufficient training and experience in installing heat pumps,​
2.14 as determined by the commissioner; and​
2.15 (5) the total cost to purchase and install the geothermal heat exchange system, including​
2.16 the associated geothermal loop installed and located outside the building, in the applicant's​
2.17 building.​
2.18 (b) The commissioner must develop administrative procedures governing the application​
2.19 and rebate award processes.​
2.20 (c) The commissioner may modify program requirements under this section if necessary​
2.21 to align with comparable federal programs administered by the department under the Inflation​
2.22 Reduction Act of 2022, Public Law 117-189.​
2.23 Subd. 4.Rebate amount.(a) A rebate awarded under this section must not exceed the​
2.24 lower of:​
2.25 (1) for a single-family home: (i) $6,000; or (ii) the total cost to purchase and install the​
2.26 geothermal heat exchange system in an eligible applicant's building, net of the rebate amount​
2.27 the applicant received for the geothermal heat exchange system from the United States​
2.28 Department of the Treasury under the Inflation Reduction Act of 2022, Public Law 117-18;​
2.29 or​
2.30 (2) for multifamily housing and commercial buildings: (i) five percent of all system​
2.31 costs, not to exceed $50,000 for a single project; or (ii) the total cost to purchase and install​
2.32 the geothermal heat exchange system in an eligible applicant's building, net of the rebate​
2​Section 1.​
24-06374 as introduced​02/21/24 REVISOR RSI/HL​

3.1 amount the applicant received for the geothermal heat exchange from the United States​
3.2 Department of the Treasury under the Inflation Reduction Act of 2022, Public Law 117-18.​
3.3 Subd. 5.Prevailing wage.A project with a total system capacity over 284 tons that​
3.4 receives financial assistance under this section is subject to the requirement to pay the​
3.5 prevailing wage rate, as defined in section 177.42, and the requirements and enforcement​
3.6 provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.​
3.7 Subd. 6.Prioritization.When evaluating applications under this program, the​
3.8 commissioner must give priority to applic