AN ACT ESTABLISHING A THERMAL ENERGY NETWORK GRANT AND LOAN PROGRAM.

2025 Regular Session Introduced by Joe Gresko and 3 co-sponsors

Summary of HB 6929: Establishing a Thermal Energy Network Grant and Loan Program Bill OverviewThis bill, introduced on February 13, 2025, seeks to establish a grant and loan progra

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Bill Overview

This bill, introduced on February 13, 2025, seeks to establish a grant and loan program to support the development of thermal energy networks in the state. Thermal energy networks, also known as district heating and cooling systems, are centralized infrastructure that generate and distribute thermal energy (heating and cooling) to multiple buildings through a network of underground pipes.

Key Provisions

The main components of HB 6929 include:

Thermal Energy Network Grant Program: The bill would create a competitive grant program administered by the Department of Energy and Environmental Protection (DEEP). Grants of up to $10 million would be available to support the planning, design, and construction of new thermal energy networks or expansions of existing networks.

Thermal Energy Network Loan Program: In addition to grants, the bill would establish a low-interest loan program for thermal energy network projects. DEEP would be authorized to provide loans of up to $50 million per project at an interest rate of 2% or less.

Eligibility and Funding: Municipalities, regional councils of government, and private entities would be eligible to apply for the grants and loans. The bill appropriates $50 million from the state's general fund to capitalize the new programs.

Reporting Requirements: Recipients of grants or loans would be required to submit annual reports to DEEP detailing the status, energy savings, and environmental benefits of their projects.

Potential Impact

If enacted, HB 6929 could have several important impacts:

Accelerate the deployment of thermal energy networks, which can significantly reduce greenhouse gas emissions and fossil fuel consumption compared to traditional building-level heating and cooling systems.

Provide financial assistance to help overcome the high upfront costs that often hinder the development of thermal energy network infrastructure.

Increase energy efficiency and sustainability in the heating and cooling of buildings across the state.

Generate long-term cost savings for building owners and tenants connected to the thermal energy networks.

Create new jobs and economic opportunities in the design, construction, and operation of these systems.

Overall, this bill represents a comprehensive effort to incentivize and support the growth of thermal energy networks as a strategy for improving energy efficiency and reducing the environmental impact of the building sector in the state.