A bill for an act
relating to energy; requiring certain buildings to meet energy performance
standards; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 216C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216C.332] BUILDING ENERGY PERFORMANCE STANDARDS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Building type" means a category of buildings similar in design, function, and energy
use.
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new text begin (c) "Covered building" has the meaning given to "covered property" in section 216C.331,
subdivision 1.
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new text begin (d) "Energy" has the meaning given in section 216C.331, subdivision 1.
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new text begin (e) "Energy use intensity" has the meaning given in section 216C.331, subdivision 1.
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new text begin (f) "Energy Star Portfolio Manager" has the meaning given in section 216C.331,
subdivision 1.
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new text begin (g) "Final performance standard" means the numeric value of a performance metric that
covered buildings must meet by 2045.
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new text begin (h) "Financial distress" means that a covered building:
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new text begin (1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
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new text begin (2) is controlled by a court-appointed receiver based on financial problems;
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new text begin (3) is owned by a financial institution through default by the borrower;
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new text begin (4) has been acquired by deed in lieu of foreclosure; or
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new text begin (5) has a senior mortgage that is subject to a notice of default.
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new text begin (i) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride resulting from energy
used at a building site.
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new text begin (j) "Interim performance metric" means the numeric value of a performance metric that
covered properties must meet every five years until 2045.
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new text begin (k) "Multifamily affordable housing" means a covered building that:
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new text begin (1) contains five or more dwelling units;
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new text begin (2) is encumbered by an agreement that limits rents charged to tenants or imposes income
limits on tenants, whether those limits are imposed by a governmental entity or self-imposed
by the owner; and
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new text begin (3) receives or received financing or financial assistance from the federal government.
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new text begin (l) "Owner" means:
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new text begin (1) an individual or entity that possesses the title to a covered building; or
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new text begin (2) an agent authorized to act on behalf of the covered building owner.
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new text begin (m) "Performance metric" means an objectively verifiable numeric measure of building
performance with respect to energy use or greenhouse gas emissions.
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new text begin (n) "Total floor area" has the meaning given in section 216C.331, subdivision 1.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish and maintain a building
performance standards program. The purpose of the program is to reduce: (1) the amount
of energy used to (i) heat and cool buildings, and (ii) provide other energy services; and (2)
greenhouse gas emissions from buildings to assist the state in meeting the greenhouse gas
reduction goals under section 216H.02, subdivision 1.
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new text begin Subd. 3. new text end

new text begin Classification of covered buildings. new text end

new text begin For the purposes of this section, a covered
building is classified as follows:
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new text begin Class
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new text begin Ownership
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new text begin Total floor area (square feet)
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new text begin 1
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new text begin City, state, county, school district,
metropolitan council
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new text begin 50,000 or more
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new text begin 2
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new text begin Private
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new text begin 100,000 or more
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new text begin 3
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new text begin Private
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new text begin 50,000 or more
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new text begin Subd. 4. new text end

new text begin Final performance standards; establishment. new text end

new text begin (a) No later than January 1,
2026, the commissioner must establish final performance standards with respect to energy
use and greenhouse gas emissions for all covered buildings. The commissioner must establish
the final performance standards at a level so that in 2045, if the performance standards are
met by all covered buildings:
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new text begin (1) the aggregated energy use intensity of all covered buildings is reduced by 30 percent
from a 2005 baseline; and
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new text begin (2) the aggregated greenhouse gas emissions from all covered buildings is reduced by
90 percent from a 2005 baseline.
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new text begin (b) When establishing final performance standards, the commissioner may utilize the
building types used in the Energy Star Portfolio Manager benchmarking tool or other building
types.
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new text begin (c) Class 1 covered buildings must meet the final performance standard no later than
2043. Class 2 covered buildings must meet the final performance standard no later than
2044. Class 3 covered buildings must meet the final performance standard no later than
2045.
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new text begin (d) Final performance standards established for a covered property containing more than
a single building type must be calculated on a pro rata basis based on the square footage of
each building type.
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new text begin Subd. 5. new text end