City Council Meeting Date: June 3, 2025
To: Mayor and City Council
City Administrator
From: Risi Karim, Assistant to the City Administrator
Title
Consider Approving Application for the MN Department of Commerce Geothermal Planning Grant Program
Body
Action Requested:
The Northfield City Council approves the application submittal for the MN Department of Commerce Geothermal Planning Grant Program
Summary Report:
Staff submitted a grant application to the Minnesota Department of Commerce in March 2025, requesting the maximum award amount of $150,000. This report is provided for Council’s information and post approval in accordance with the grants policy. Also, this provides some additional awareness regarding the grant submission and outcome. Staff will keep the Council updated on future opportunities related to this initiative.
Earlier this month, the City was notified that its application was not selected for funding during this grant cycle. While this outcome is disappointing, staff remains committed to exploring future funding opportunities and partnerships to advance geothermal and other sustainable energy projects at City facilities.
Background
The Minnesota Legislature established the Geothermal Planning Grant Program during the 2024 legislative session to support local governments in assessing the technical and economic feasibility of geothermal energy systems. The Minnesota Department of Commerce is administering the program and will distribute a total of $1.08 million in grant funds statewide. Individual grants of up to $150,000 are available to support planning efforts for systems that heat and cool one or more buildings. Eligible geothermal systems include:
• Bored geothermal heat exchangers
• Groundwater thermal exchange devices
• Submerged closed-loop heat exchangers
The City sought funding through this program to support a comprehensive feasibility study and planning process for a geothermal heating and cooling system at the Northfield Community Resource Center (NCRC). This initiative aligns with the City’s commitment to sustainability, carbon reduction, and energy efficiency in city facilities. The potential use of geothermal systems at City-owned buildings has been under discussion for several years and was formally identified in Northfield’s Climate Action Plan (CAP), adopted in 2019. The CAP highlights geothermal energy as a strategic opportunity to:
• Reduce greenhouse gas emissions
• Lower long-term energy costs
• Increase energy system resilience for City operations
Alternative Options:
None recommended.
Financial Impacts:
Grant Funds $150,000, no city match requested
Tentative Timelines:
Application Open: Monday, December 16, 2024
Application Due: Monday, March 10, 2025