Thermal energy could become a utility-scale thing under bill

Last year, thermal energy was a hot topic at the Capitol. The House Energy Finance and Policy Committee discussed several bills related to tapping into the earth to heat and cool houses and buildings.

The next step in implementation of the technology is seeing if utilities want to start building thermal energy networks that would function much as natural gas systems do now.

They would get the green light to start doing so under HF4122. Sponsored by Rep. Athena Hollins (DFL-St. Paul), it would establish a regulatory pathway for utilities to develop and implement thermal energy networks in the state.

On Tuesday, the committee laid the bill over, as amended, for possible omnibus bill inclusion.

Rep. Athena Hollins

“This bill, as amended, is the result of the thermal energy network deployment work group, as well as months of negotiation with a broad array of stakeholders,” Hollins said. “Thermal energy networks are projects that provide heating and cooling to multiple buildings connected via underground piping that contains fluids that exchange thermal energy from the earth underground or from surface water, wastewater or other heat sources.

“This bill allows public utilities to build thermal energy networks, if they so choose. … Thermal energy networks are subject to the same [Public Utilities Commission] oversight as electric and natural gas services, ensuring that consumer protection remains strong.”

On Dec. 15, the Commerce Department published a report from the Public Utilities Commission workgroup that identifies geographic areas deemed most suitable for thermal energy networks in Minnesota, potential barriers to their deployment and possible solutions.

Testifiers representing utilities, unions and advocacy groups all praised the proposal, with Kevin Pranis, marketing manager for the Great Lakes regional organizing committee for Laborers’ International Union of North America, saying that deployment of thermal energy uses many of the same skills as utility and water infrastructure.

“I think this is a really important step,” said Rep. Katie Jones (DFL-Mpls). “And we’d be a leader in the country in taking this step.”

“We know that decarbonizing heating and cooling is one of the biggest challenges that we have in the clean energy transition,” Hollins said. “And this bill would create a foundation for utilities to incorporate [thermal energy networks] into their resource plans.”