This bill amends Minnesota Statutes to modify the residential energy code adoption standards and timelines, and it establishes a new residential energy rating rebate program. The commissioner of commerce is required to adopt new model residential energy codes starting in 2026, aiming for a 70% reduction in annual net energy consumption by 2038, using the 2006 International Energy Conservation Code as a baseline. The bill also mandates that the commissioner report on progress regarding these codes to legislative committees annually. Additionally, the bill includes provisions for the adoption of commercial energy codes that will achieve an 80% reduction in energy consumption by 2036.

The newly created residential energy rating rebate program will provide financial assistance to owners, builders, and developers of qualifying residential units certified under the U.S. Department of Energy's Zero Energy Ready Home Program. The program will offer rebates up to $5,000 for single-family homes and $2,500 for other types of housing, with a cap of $15,000 in total rebates for a single building. The bill appropriates $600,000 from the general fund for the program, which will be available until June 30, 2029, and requires the commissioner to report annually on the program's outcomes starting in 2026.