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 specified conditions. Additionally, a Building Performance Advisory Committee will be created to provide guidance on the program's implementation and recommend standards.

The bill also introduces new administrative procedures for grant applications and awards, prioritizing applications that focus on reducing energy use in multifamily affordable housing or that exceed EUI standards. It specifies that 50% of grant amounts will be disbursed before work begins, with the remainder paid upon completion. Furthermore, the bill includes an appropriation of funds from the general fund for fiscal year 2026 to support the program's administration and enforcement, with specific allocations for grants and a technical assistance hub. The provisions will take effect the day after final enactment.