H.F. 4423 Summary

• Expands the definition of "service" under Minnesota energy law to include thermal energy and its delivery or measurement.

• Requires utilities with more than 800,000 customers to include at least five pilot thermal energy network projects in their innovation plans, with at least two projects located in disadvantaged communities.

• Directs the Public Utilities Commission to initiate a proceeding within six months to establish ownership, market, and rate structures for pilot thermal energy networks and determine if thermal energy services are in the public interest.

• Requires the Commission to adopt administrative rules governing thermal energy networks and to deem thermal energy networks approved in innovation plans as satisfying certificate of need requirements under section 216B.243.

• Directs the Department of Commerce to conduct a study by December 31, 2024, determining optimal thermal energy network capacity for Minnesota by 2030, 2040, and 2050, and to host a stakeholder meeting by September 15, 2024, to solicit recommendations for promoting thermal energy network deployment.