This bill establishes a Building Energy Performance Standards program in Minnesota, which mandates that certain buildings achieve a 90% reduction in greenhouse gas emissions from a 2005 baseline by 2045. The commissioner will set final Energy Use Intensity (EUI) standards by January 1, 2026, with interim standards to be met every five years starting in 2028. Building owners are required to report their progress, and the bill includes provisions for extensions, exemptions, and penalties for non-compliance. Additionally, a Building Performance Advisory Committee will be created to provide guidance on the program's implementation, and a technical and financial assistance hub will be established to support building owners in meeting the new standards.

The bill also introduces new administrative procedures for grant applications and awards, prioritizing funding for projects that reduce energy use in multifamily affordable housing or exceed EUI standards. It specifies that 50% of grant funds will be disbursed upfront, with the remainder paid upon project completion. Furthermore, the commissioner must align program requirements with federal initiatives under the Inflation Reduction Act of 2022. An appropriation from the general fund for fiscal year 2026 is included to support the program's administration and enforcement, with specific allocations for grants and assistance. These provisions will take effect the day after final enactment.