Proposed pilot project could help realize energy savings in nursing facilities

Long-term care facilities could get easier access to energy savings.

Sponsored by Rep. Ginny Klevorn (DFL-Plymouth), HF2244 would extend the Property Assessed Clean Energy financing mechanism to include nursing facilities, making projects like updated, energy-efficient lighting or HVAC systems more affordable, Klevorn said.

The House Long-Term Care Division approved the bill Monday and referred it to the House Health and Human Services Finance Division.

Rep. Ginny Klevorn

A companion, SF2009, is sponsored by Sen. Jim Abeler (R-Anoka) and awaits action by the Senate Family Care and Aging Committee.

Going forward, Klevorn plans to amend the bill to narrow the scope to a pilot project, to make sure the idea works as intended.

The planned amendment would also allow the state to work out a mechanism to split the benefit of energy savings between facilities and the state, said Assistant Human Services Commissioner Dan Pollack.

The PACE program has helped fund hundreds of projects around the state, including solar energy projects, generating nearly $500 billion in savings, said Peter Klein, vice president of finance for the St. Paul Port Authority, which manages PACE.

HF2244 would help nursing facilities access this program by modifying the definition of “special assessment” in Medical Assistance’s nursing facility value-based reimbursement system. The bill would also specify a limit to allowable costs, require credits and rebates to be used for offsetting project costs, and prohibit duplicative reporting.