Care Center Rate Increases for Clean Energy Projects Available

Posted on March 31, 2021 by Jeff Bostic

2019 legislation authorized the Minnesota Department of Human Services (DHS) to develop a pilot project to reduce overall energy consumption in care centers and provide rate adjustments for providers implementing Property Assessed Clean Energy (PACE) projects. PACE projects are clean energy projects paid off through a financing mechanism that uses a special assessment. The commissioner will select projects from qualifying proposals via a competitive application process. The application and associated materials are at the top of the DHS Nursing Facility Provider Portal. Proposals are due June 1.

A care center applying for a rate adjustment must demonstrate it has met specific criteria, including cost-effectiveness requirements after an energy assessment or audit (MS 216B.241) and a completed PACE application and recommended approval by an authorized PACE program administrator (MS 216C.435 and 216C.436). Applicants must provide the commissioner with all requested information regarding its utility costs from a period before and after project completion. Approved projects will have a contract that specifies the level of payment. Payments are time limited-time rate adjustments, and they become part of the external fixed costs payment rates under MS 256R.25.

While this rate adjustment is specific to care centers, property assessed clean energy projects are an option for many buildings, including assisted and independent living for seniors. Members interested in implementing a PACE project can get more information at the PACE website.