SAINT PAUL, Minn. – Today, March 25, 2026, the Senate Energy, Utilities, Environment & Climate Committee heard Senate File 4730, authored by Senator Tou Xiong (DFL – Maplewood). The bill appropriates $3 million from the Renewable Development Account to The Heights Community Energy to construct a geothermal energy system. This community in East Saint Paul has 1,000 market-rate and affordable housing units and one million square feet of light industrial space.
The proposed geothermal system will use aquifer thermal energy storage, drawing water from underground aquifers to heat and cool buildings; this system will work in tandem with solar and energy storage to provide low-cost, reliable, low-maintenance energy for the community. Ultimately, this will be a net-zero carbon system.
“The Heights Community proposal is a great example of how we can move our living and working spaces to more renewable energy sources,” said Sen. Xiong. “Geothermal systems deliver substantial cost savings. They are among the most efficient heating and cooling solutions in North America. Moving large communities like The Heights to geothermal networks lowers costs for residents and reduces overall energy demand. I hope to see more projects like this coming from our Renewable Energy Account in the future.”
The systems are currently being designed, with potential construction over the next two years, and anticipated geothermal operations commencing in 2028.
The committee laid the bill over for possible inclusion in a future omnibus bill. The bill presentation can be viewed here.
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