Senate committee hears McAllister College geothermal RDA request; members press for independent cost and payback analysis
March 18, 2026 | 2026 Legislature MN, Minnesota
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ST. PAUL — McAllister College requested Renewable Development Account (RDA) support for a ground-source geothermal heat-pump plant paired with rooftop solar for a new north-campus residence hall and welcome center during the Senate Energy Committee hearing March 17.
Senator Champion introduced the project and college officials said the installation is already under construction, designed as a closed-loop geothermal plant that can expand to serve additional campus buildings. College witnesses said the integrated design — geothermal plus improved envelope and rooftop solar — is expected to reduce operating costs and emissions and that the rooftop solar will provide on-site generation to offset some of the plant’s electricity demand. Testimony said the full building cost is approximately $88 million and the project team estimated annual operational savings from the combined measures on the order of tens of thousands of dollars per year; witnesses cited a figure of about $71,000 in annual savings tied to the geothermal, upgraded envelope and rooftop solar.
Committee members sought more detail about the project’s financing and independent verification. Questions included whether the geothermal system is closed-loop (witnesses confirmed it is), where remaining capital would come from (testimony said private philanthropy and bonds in addition to prior federal grant efforts), how long the system is expected to last (witnesses provided a long-life estimate for loop piping and ancillary equipment) and what backup arrangements exist for reliability. Several senators expressed concern about using RDA money — collected from ratepayers — for a project that also benefits a college with a substantial endowment and private fundraising, and asked for independent comparisons of a conventional natural-gas system versus the proposed electrified design.
Chair France said the committee would continue RDA discussions and laid the bill (SF 32 11) over for further consideration.
Why it matters: If funded from the RDA, the project would use ratepayer-collected funds for a campus electrification demonstration; the committee’s questions focus on return on investment, equity of subsidy and whether RDA support best advances statewide goals.
What’s next: Committee staff will continue conversations with the sponsor and RDA stakeholders; the bill was laid over.
Senator Champion introduced the project and college officials said the installation is already under construction, designed as a closed-loop geothermal plant that can expand to serve additional campus buildings. College witnesses said the integrated design — geothermal plus improved envelope and rooftop solar — is expected to reduce operating costs and emissions and that the rooftop solar will provide on-site generation to offset some of the plant’s electricity demand. Testimony said the full building cost is approximately $88 million and the project team estimated annual operational savings from the combined measures on the order of tens of thousands of dollars per year; witnesses cited a figure of about $71,000 in annual savings tied to the geothermal, upgraded envelope and rooftop solar.
Committee members sought more detail about the project’s financing and independent verification. Questions included whether the geothermal system is closed-loop (witnesses confirmed it is), where remaining capital would come from (testimony said private philanthropy and bonds in addition to prior federal grant efforts), how long the system is expected to last (witnesses provided a long-life estimate for loop piping and ancillary equipment) and what backup arrangements exist for reliability. Several senators expressed concern about using RDA money — collected from ratepayers — for a project that also benefits a college with a substantial endowment and private fundraising, and asked for independent comparisons of a conventional natural-gas system versus the proposed electrified design.
Chair France said the committee would continue RDA discussions and laid the bill (SF 32 11) over for further consideration.
Why it matters: If funded from the RDA, the project would use ratepayer-collected funds for a campus electrification demonstration; the committee’s questions focus on return on investment, equity of subsidy and whether RDA support best advances statewide goals.
What’s next: Committee staff will continue conversations with the sponsor and RDA stakeholders; the bill was laid over.
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