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Committee lays over bill to continue geothermal planning grant program with $2M appropriation
Summary
House File 2162 would add $2 million to a geothermal and thermal energy planning grant program and extend eligibility to tribal governments; the bill's A1 amendment set the RDA appropriation at $2 million and added tribal eligibility and was adopted before the bill was laid over.
A Minnesota House committee on March 18 laid over House File 2162 after adopting an author's amendment that sets a $2 million Renewable Development Account appropriation and expands grant eligibility to include tribal governments.
Representative Mahamud moved the bill and described it as a continuation and expansion of a 2024 geothermal planning grant program. "Geothermal and thermal energy networks are a growing industry in Minnesota with enormous potential to provide Minnesotans with clean energy to heat and cool our buildings," she said.
Why it matters: Testimony from Fresh Energy and local project coordinators said planning grants help small cities and tribal communities prepare shovel'ready projects that can reduce operating costs, improve reliability and unlock larger infrastructure investments. Sam Friesen, managing director of buildings at Fresh Energy, told the committee the original appropriation for the planning program was $1.2 million, demand exceeded supply (19 applicants requested roughly $2.56 million in the prior round), and an additional $2 million would increase access to feasibility and predevelopment planning.
Crookston, MN, provided a concrete example: Taylor Wyam, project coordinator for the City of Crookston Economic Development Department, described a neighborhood-scale geothermal network being planned alongside street and sewer reconstruction and said the prior planning grant made the preliminary work viable. Wyam urged continued funding to help more small cities and tribal partners complete feasibility work and align with near'term infrastructure projects.
Committee action: Representative Mahamud moved and the A1 amendment (setting RDA appropriation to $2,000,000 and adding tribal governments as eligible entities) was adopted; the bill was laid over for omnibus consideration. No roll'call vote totals were recorded in the transcript.
Technical clarifications from witnesses: Fresh Energy and committee members discussed typical system designs; witnesses said modern geothermal closed'loop systems are standard and that ground'source systems perform reliably at Minnesota temperatures, unlike some older air'source heat pumps that lose efficiency at very low temperatures.
Next steps: The bill was left in committee for omnibus negotiations; committee members asked staff and sponsors to consider access for small communities that lack grant-writing capacity and to track distribution between metro and Greater Minnesota applicants.
