Support for energy efficiency projects could help nursing homes, communities

Nursing homes may want to update their buildings to be more energy efficient, but they may not have the cash needed to do so, Rep. Todd Lippert (DFL-Northfield) told the House Long-Term Care Division Monday.

He sponsors HF3236, which would establish an energy efficiency grant program for nursing homes, allowing them to make improvements that would save money, create jobs, and improve the quality of life for both residents and employees.

The division approved the bill as amended. It now goes to the House Energy and Climate Finance and Policy Division, where a range of grant programs are under consideration.

A companion, SF2123, sponsored by Sen. Karin Housley (R- St. Marys Point), awaits action by the Senate Family Care and Aging Committee.

The program would be administered by the Department of Commerce and developed in concert with the Department of Human Services and other public agencies.

Dylan Sievers, senior policy analyst at Fresh Energy, testifies March 2 before the House Long-Term Care Division in support of a bill that would establish a nursing home energy efficiency grant program. Photo by Andrew VonBank

It would be supported by a $20 million one-time appropriation in Fiscal Year 2021, which would remain available until June 30, 2022. Any funds left over after that date would be returned to the General Fund.

Grants would be limited to $500,000 per applicant and distributed using a competitive application and review process that would consider a range of criteria, including project readiness, innovation, community impact, and reductions in fossil fuel emissions.

The amendment, offered by Rep. Ginny Klevorn (DFL-Plymouth), would require that projects meet "prevailing wage rate" requirements, with the intention of supporting “high-quality local jobs” and ensuring that the work is done to a high standard.

A few Republicans objected, saying that the amendment doesn’t account for differences between the metro area and Greater Minnesota and that it would limit the amount of funding available for projects.

Another program exists to help nursing homes fund small projects — including energy efficiency projects — but does not provide up-front funding, Lippert said.

Rep. Glenn Gruenhagen (R-Glencoe) said that the division should be wary about creating and funding new programs and consider modifying the existing program instead.

“Our HHS budget is growing at a rate that is simply unsustainable,” he said. “I just think we’ve got to be real careful.”