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HF 3179

Certain buildings required to meet energy performance standards, reports required, and money appropriated.

2025-2026 Regular Session Introduced by Katie Jones and 3 co-sponsors

Minnesota requires large public and private buildings to meet progressive energy use and emissions standards, aiming for a 90% GHG reduction by 2045 with enforcement and financial

Author added Rehrauer
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WeVote Research Nonpartisan
Bill Summary · HF 3179

Summary of HF 3179 (2025-2026) — Minnesota: Building Energy Performance Standards, Reports, and Funding

Note: This summary covers the main purpose, key provisions, affected parties, and procedural/timeline aspects as proposed.

1) Purpose and Intent

  • Establishes a statewide program to reduce energy use and greenhouse gas (GHG) emissions from covered buildings.
  • Aims for a 90% reduction in GHG emissions from covered buildings by 2045 relative to a 2005 baseline.
  • Implements energy performance standards (EUI – energy use intensity) with interim and final targets, enforcement mechanisms, and financial assistance to achieve compliance.

2) Key Provisions and Changes

A. Building Energy Performance Standards (216C.332)

  • Defines key terms: building types, covered buildings, Energy Star Portfolio Manager, EUI, and related concepts.
  • Establishes a framework to reduce energy use and GHG emissions from covered buildings by 2045.

B. Classification and Coverage

  • Classifies covered buildings by ownership and size:
    • Class 1: Public ownership (cities, counties, school districts, metropolitan councils) with 100,000+ total floor area.
    • Class 2: Public ownership with 50,000–99,999 total floor area.
    • Class 3: Private ownership with 100,000+ total floor area.
    • Class 4: Private ownership with 50,000+ total floor area.
  • Also includes multifamily affordable housing (as defined) within coverage.

C. Final EUI Standards (Subd. 4)

  • By Jan 1, 2026, the commissioner must establish final EUI standards designed to achieve a 90% GHG reduction by 2045 (from 2005 baseline).
  • Standards may use building types from Energy Star Portfolio Manager or other types.
  • Phase-in deadlines by class:
    • Class 1: Final standard by 2042
    • Class 2: Final standard by 2043
    • Class 3: Final standard by 2044
    • Class 4: Final standard by 2045
  • For mixed-building-type properties, final standards are prorated by building-type square footage.

D. Interim EUI Standards (Subd. 5)

  • Establish interim standards every 5 years beginning in 2028 for Class 1 and continuing through 2045 for Class 4.
  • Interim progress must follow a straight-line trajectory toward the final EUI standards.
  • Owners must submit progress reports to the commissioner on prescribed forms.

E. Extensions, Exemptions, and Adjustments (Subd. 6)

  • Allows owner requests for extensions, exemptions, or adjustments due to:
    • Financial distress
    • Occupancy issues, occupancy certificates, current demolition permits, or energy service disruptions
    • Public-interest considerations
  • Penalties: If a request is filed within one year of a deadline, penalties can apply (up to $1,000 per submission window, as determined by the commissioner).
  • Multifamily Affordable Housing: Exempt until refinancing occurs; after refinancing, they face the next applicable EUI standard.
  • Exemptions apply if there is a more stringent state or local energy standard.
  • Data submitted for exemption considerations is treated as not public.

F. Interaction with Utilities (Subd. 7)

  • Utilities may offer energy efficiency programs and count energy savings toward the building’s performance as approved in related utility planning.

G. Public Buildings — Portfolio Option (Subd. 8)

  • Owners of multiple Class 1 or Class 2 buildings can meet an applicable EUI standard by achieving reductions across their portfolio equivalent to or greater than what would have occurred if each building met its standard individually.

H. Building Performance Advisory Committee (Subd. 9)

  • Establishes a multidisciplinary advisory committee by Aug 15, 2025, including utilities, efficiency/renewable sectors, designers, engineers, managers, labor representatives, affordable housing owners, tenants, climate/environment nonprofits, and a university energy expert.
  • Committee roles: advise on implementation, recommend interim/final standards, and recommend exemption/extension/adjustment procedures.
  • Committee to meet quarterly; department staff to support.

I. Penalties and Compliance Payments (Subd. 10)

  • If a covered building misses an interim/final standard without approved relief, a compliance payment is required.
  • Penalty amount is up to a level tied to energy overconsumption (per 1,000 BTU excess) and increases over time aligned with the social cost of carbon emissions (per the latest state-accepted estimate).
  • Options to avoid penalties if an approved remedy or extension is granted, but future noncompliance triggers additional penalties.
  • Penalty calculations consider magnitude of excess, duration, building value, and number of missed standards.

J. Technical and Financial Assistance Hub (Subds. 11–12)

  • Requires a nonprofit with energy efficiency experience to run a Building Performance Technical and Financial Assistance Hub.
  • Hub provides:
    • Direct technical assistance to owners
    • Connection to other owners with successful reductions
    • Information on financial assistance (tax credits, utility incentives, federal/state/local programs)
  • Commissioner may contract with third parties to implement duties; outreach to begin in 2025.

K. Funding and Administration (Subs. 13–14)

  • Establishes a Building Energy Performance Standards program account in the state treasury for appropriations, penalties, and earnings.
  • Funds may be used for grants (Subd. 14) and for the technical/financial assistance hub (Subd. 11).
  • Grants may prioritize multifamily affordable housing and larger/earlier energy reductions.
  • Grants can be disbursed 50% upfront before work and the remainder on completion.
  • Administrative procedures to align with federal programs (Inflation Reduction Act) as needed.
  • Effective date: upon final enactment.

3) Who Is Affected

  • Covered buildings and their owners/operators (private and public):
    • Multifamily buildings (especially affordable housing)
    • Local governments and school districts
    • Building managers, engineers, designers, and energy professionals
  • Utilities and energy program administrators
  • Building owners seeking exemptions or extensions
  • Tenants and community organizations (via advisory committee representation)
  • Agencies administering energy efficiency grants and technical assistance

4) Procedural and Timeline Highlights

  • Final EUI standards: due by 2042–2045 depending on class; interim standards begin 2028 and every five years thereafter.
  • Advisory Committee: appointments by Aug 15, 2025; quarterly meetings.
  • Outreach and implementation: to begin in 2025; ongoing program administration in 2026 and beyond.
  • Funding: 2026 general fund appropriation to administer and enforce program, with allocations for grants and hub operations.

Overall, HF 3179 creates a structured, phased approach to reduce energy use and GHG emissions from Minnesota's larger and publicly owned buildings, with financial incentives, exemptions, and support mechanisms to assist owners in achieving compliance.

Compiled from official sources — confirm details with the bill’s official record.

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