House advances bill allowing local governments to bond for thermal energy networks

The House on Wednesday approved House File 4348 to allow cities and counties to treat thermal energy networks—systems that use ground heat for heating and cooling—as public improvements eligible for bonding. Representative Kraft, the bill’s author, said the systems are long‑lived infrastructure that typically cut heating and cooling costs by 40–70% and align with federal geothermal programs.

Representatives asked technical questions about system types (open‑loop vs. closed‑loop). Kraft said the bill is silent on loop type and noted Minnesota’s permitting standards already constrain hydrologic impacts in applicable systems. The bill passed comfortably, 117–16, and supporters said the change expands financing tools for local governments that want to invest in district thermal systems and resilient, lower‑carbon energy infrastructure.