Purpose of the Bill

The bill aims to create energy performance standards for certain buildings in Minnesota to significantly reduce their energy use and greenhouse gas emissions by 2045. It is part of a broader effort to promote energy conservation and combat climate change at the state level.

Main Provisions

• Energy Standards Implementation: The bill requires certain buildings to meet defined energy use intensity (EUI) standards. These standards will gradually reduce energy usage and emissions by 90% from a 2005 baseline by the year 2045.

• Building Classifications: Buildings are classified into categories based on their ownership (such as public or private) and total floor area, with different timelines for compliance determined by these classifications.

• Interim Milestones: To ensure steady progress, interim EUI standards must be met every five years, starting in 2028 for the largest public buildings, and continuing through 2045 for smaller private buildings.

• Exemptions and Adjustments: Building owners experiencing financial distress or other qualifying conditions may request extensions, exemptions, or adjustments to the EUI standards. Multifamily affordable housing is exempt until refinancing occurs.

• Reporting and Compliance: Building owners must regularly report their progress towards meeting these standards. Penalties apply for failure to comply with interim or final standards without valid exemptions or adjustments.

• Assistance and Incentives: A technical and financial assistance hub will be established to help building owners reduce energy usage. Financial grants are available to assist with improvements necessary to meet the standards.

• Advisory Committee: A Building Performance Advisory Committee consisting of stakeholders from various sectors will be formed to advise on the implementation and operation of the standards.

• Penalties: Non-compliance with EUI standards can result in financial penalties, calculated based on the excess energy consumption beyond the standard.

Significant Changes to Existing Law

• The bill establishes new energy performance standards specifically coded into Minnesota Statutes chapter 216C.
• It introduces a more structured approach to managing building energy efficiency, including a requirement for periodic review and adjustment of standards.
• It sets a legal framework for penalties and compliance incentives beyond existing energy conservation policies.

Relevant Terms

• Building energy performance standards
• Energy use intensity (EUI)
• Greenhouse gas emissions
• Interim performance metric
• Financial distress
• Multifamily affordable housing
• Energy Star Portfolio Manager
• Building Performance Advisory Committee