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 ensure progress. The bill also provides for extensions, exemptions, and adjustments to the EUI standards based on specific circumstances, and it establishes a Building Performance Advisory Committee to assist in program implementation. Penalties will be imposed on non-compliant building owners, while a technical and financial assistance hub and a grant program will be created to support compliance and energy efficiency improvements.

Additionally, the bill introduces new provisions for the grant application and award processes, allowing preferences for applicants based on building types or energy-reduction measures, particularly for multifamily affordable housing. It stipulates that 50% of grant funds must be disbursed before work begins, with the remainder paid upon completion. The bill includes an appropriation of funds from the general fund for fiscal year 2026 to support the program's administration and enforcement, as well as for grants and assistance. It also requires the commissioner to align program requirements with federal programs under the Inflation Reduction Act of 2022, with provisions taking effect the day after final enactment.