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Proposal 1: instruct the DNR to include regulations controlling the use of water source heat pumps in their existing water supply management program. Additional funding or a staff position may be needed. The DNR may want to draw on the expertise of the WPB in developing its program. Regulatory parameters might include liquifer-specific well spacing and well depth standards in critical water areas or in aquifers where problems of drawdown and well interference are prevalent. Since water quality and water quantity issues are considerably interrelated, the DAR will also have to work closely with the MHD and the consumer to determine the best type of water source heat pump system for a particular water supply. At times the potential for water quantity problems may outweigh the potential for water quality problems. This is parti--ularly true in critical supply areas. C. Financial Incentives Objectives o encourage the use of water source neat pimp; through the use of financial incentives. Proposal l: Include water source heat pumps in any of the proposed renewable energy loan programs. P•oposal 2: Adopt a resolution to request the Housing Finance -ncy (HFA)'to include water source heat pumps in their home improvem�'* loan program. Proposal3: Include tax credits for water source heat pumps i;, proposals to continue the renewable energy tax -redit proram. Justification TState financial incentive proms- 4nms for the purchase and instal lativi. weatherizatir,t and alternati, enci,gy systems provide both social and economic sanctions for consumers to explore the use of these energy -saving measures. Presently, approximately forvy-four state, nave enacted some form of legislation to prov'.e such financial incentives. States are just ueginning to enhance their monitoring capabilities to assess the impact of these programs, but as yet there are no figures on the let energy savings �iializea. The National Solar Center has, however, collected information on .ax incentives that suggests that the number of state residents using these programs increases dramatically each year the incentives are in effect. In California, for examole, applications for solar tax credits grew from 5,600 in 1976 to 16,80 1978, an increase of 300 percent. Similar percentage increases were raa,, in all of the five other states that collected the relevant data {Perretta, 19W . The increased use of energy cv. -rvat.—, u_'.'nas and alternative energy systems off- ; several henefits to society as a vhole, such as d .-reased dependence on imported fossil fuels, utilization o," lbur'Jant and -13-