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 is responsible for setting final Energy Use Intensity (EUI) standards by January 1, 2026, with interim standards to be established every five years starting in 2028. Building owners are required to report their progress towards these standards, and the bill includes provisions for extensions, exemptions, and adjustments based on financial distress or other circumstances. Additionally, a Building Performance Advisory Committee will be created to advise on the program's implementation and recommend standards, while a dedicated account will manage funds related to the program, including penalties collected.

The bill also introduces new provisions to enhance the program, including the development of administrative procedures for grant applications and awards, with preferences for applicants based on building types or energy-reduction measures. Priority will be given to applications aimed at reducing energy use in multifamily affordable housing or exceeding EUI standards. The bill stipulates that 50% of the grant amount will be disbursed before work begins, with the remainder paid upon completion. Furthermore, it requires the commissioner to align program requirements with federal programs under the Inflation Reduction Act of 2022 and includes an appropriation of funds from the general fund for fiscal year 2026 to support grants and a technical assistance hub. These new provisions will take effect the day after final enactment.