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Senate committee advances geothermal rebate bill adding $5 million for commercial projects
Summary
The Minnesota Senate Energy Committee adopted an A1 amendment to Senate File 2900 that fills in funding amounts and would create a geothermal rebate program for commercial buildings; the bill was laid over for possible inclusion in the omnibus package.
Senate members on the Energy, Utilities, Environment and Climate Committee voted to adopt an A1 amendment to Senate File 2900, a bill that would establish a geothermal rebate program focused on commercial buildings and multifamily residences.
The amendment adopted in committee adds a specified dollar amount and funding sources to the bill. Senator McKeown, the bill sponsor, told the committee the amendment fills a prior blank by allocating $5,000,000 from the general fund and $5,000,000 from the Renewable Development Account and allows up to 10% of each rebate to be used for recommended building improvements identified by a required energy audit.
The bill’s sponsor said the program is intended to reduce the upfront cost of installing geothermal systems, accelerate building decarbonization for government and nonprofit buildings and multifamily housing, and reduce greenhouse gas emissions from the building sector. "Geothermal heat pumps are a carbon free and efficient way to heat and cool our buildings," Senator McKeown said, describing ground-source heat pump operation and the potential benefits for grid demand and building comfort.
Testimony before the committee included Aurora Botrin, legislative director for an organization identified in the record as 100%, who said the rebate would help local governments and other building owners move from planning into construction. "This rebate program will enable those local governments, along with others interested in geothermal for their commercial buildings and multifamily residences, to move past planning and into building and benefiting Minnesotans," Botrin said. Willie Miley, regulatory director at Darcy Solutions, described his company's groundwater-enabled geothermal work and said a program like SF 2900 would “help accelerate the widespread adoption of geothermal heating and cooling across Minnesota,” noting geothermal systems can reduce peak electric demand compared with other HVAC systems.
Committee members asked no questions after testimony and the chair laid the bill over for possible inclusion in the omnibus bill. Committee staff recorded the amendment adoption by voice vote and the bill was laid over without a final committee recommendation on passage.
Implementation and next steps will depend on subsequent omnibus negotiations and any additional amendments filed in later committee action or on the Senate floor. The committee packet includes letters of support from labor organizations such as the Minnesota Pipe Trades Association and LiUNA.
Votes at a glance: The committee adopted the A1 amendment by voice vote; no roll-call was recorded. Senate File 2900 was laid over for possible inclusion in the omnibus bill.
