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Committee advances $2 million in geothermal planning grants for cities, adds tribal eligibility
Summary
Senate File 24‑54 would appropriate $2 million from the Renewable Development Account for geothermal and thermal energy network planning grants, with awards capped at $150,000. The committee adopted an author’s A‑1 amendment to specify the amount and add tribal governments to eligibility, then laid the bill over for possible inclusion.
Senator McEwen introduced Senate File 24‑54 on March 24, 2025, seeking $2,000,000 from the Renewable Development Account to continue a geothermal planning grants program established in 2024 and to expand eligibility to tribal governments. The bill would fund planning and feasibility work for geothermal and thermal energy networks across Minnesota municipalities, with individual grants capped at $150,000.
Senator McEwen said local governments — particularly smaller cities with older downtown building stock — can use geothermal systems and thermal networks to convert outdated HVAC systems to cleaner alternatives with no ongoing fuel costs and long‑term savings for taxpayers. "Geothermal and thermal energy networks are an opportunity for carbon free heating in buildings and create enormous potential to provide Minnesotans with reliable energy to heat and cool our buildings year round," the author said.
Sam Friesen, managing director of buildings at Fresh Energy (a Minnesota‑based nonpartisan nonprofit), testified in support, noting the prior round of applications exceeded available funds. Friesen told the committee Commerce received requests totaling about $2,560,000 against an original allocation of $1,200,000 and that at least 19 applicants had sought planning support. The A‑1 amendment adopted on the record fills in the appropriation amount and adds tribal governments to the list of eligible entities.
Committee members asked no substantive questions on the record; the committee laid Senate File 24‑54 over for possible inclusion in the omnibus bill.
Clarifying details from testimony: the bill requests $2,000,000 from the Renewable Development Account; grants would be capped at $150,000 each; Commerce had previously seen $2,560,000 in requests from at least 19 applicants against an earlier $1,200,000 allocation.
