HF 2269

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/22/2023 10:25am

A bill for an act
relating to energy; requiring owners of certain buildings to enter energy use data
into a benchmarking tool; requiring public disclosure of energy use data; providing
grants; requiring a report; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 216C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216C.331] ENERGY BENCHMARKING.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Aggregated customer energy use data" means customer energy use data, which is
combined into one collective data point per time interval. Aggregated customer energy use
data is data with any unique identifiers or other personal information removed that a
qualifying utility collects and aggregates in at least monthly intervals for an entire covered
building.
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new text begin (c) "Benchmark" means to electronically input into a benchmarking tool the total energy
use data and other descriptive information about a building that is required by a benchmarking
tool.
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new text begin (d) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool, and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:
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new text begin (1) address;
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new text begin (2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;
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new text begin (3) total floor area, expressed in square feet;
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new text begin (4) energy use intensity;
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new text begin (5) greenhouse gas emissions; and
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new text begin (6) energy performance score comparing the building's energy use with that of similar
buildings.
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new text begin (e) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
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new text begin (f) "Customer energy use data" means data collected from the utility customer meters
that reflect the quantity, quality, or timing of customers' usage.
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new text begin (g) "Covered property" means any property that has one or more buildings containing
in sum 50,000 gross square feet or greater. Covered property does not include:
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new text begin (1) a residential property containing fewer than five dwelling units;
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new text begin (2) a property classified as manufacturing under the North American Industrial
Classification System (NAICS);
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new text begin (3) an agricultural building; or
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new text begin (4) other property types that do not meet the purposes of this section, as determined by
the commissioner.
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new text begin (h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide
heating, cooling, lighting, or water heating; or (2) power other end uses in a building.
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new text begin (i) "Energy use intensity" means the total annual energy consumed in a building divided
by the building's total floor area.
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new text begin (j) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.
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new text begin (k) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.
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new text begin (l) "Financial distress" means a covered property that, at the time benchmarking is
conducted:
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new text begin (1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
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new text begin (2) is controlled by a court-appointed receiver based on financial distress;
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new text begin (3) is owned by a financial institution through default by the borrower;
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new text begin (4) has been acquired by deed in lieu of foreclosure; or
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new text begin (5) has a senior mortgage that is subject to a notice of default.
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new text begin (m) "Local government" means a statutory or home rule municipality or county.
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new text begin (n) "Owner" means:
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new text begin (1) an individual or entity that possesses title to a covered property; or
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new text begin (2) an agent authorized to act on behalf of the covered property owner.
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new text begin (o) "Qualifying utility" means:
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new text begin (1) an electric or gas utility, including:
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new text begin (i) an investor-owned electric or gas utility;
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new text begin (ii) a cooperative electric association; or
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new text begin (iii) a municipally owned electric or gas utility;
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new text begin (2) a natural gas supplier with five or more active commercial or industrial connections,
accounts, or customers in the state; or
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new text begin (3) a district steam, hot water, or chilled water provider.
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new text begin (p) "Tenant" means a person that, pursuant to a rental or lease agreement, occupies or
holds possession of a building or part of a building or premises.
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new text begin (q) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.
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new text begin (r) "Utility customer" means the building owner or tenant listed on the utility's records
as the customer liable for payment of the utility service or additional charges assessed on
the utility account.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish and maintain a building
energy benchmarking program. The purpose of the program is to:
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new text begin (1) make a building's owners, tenants, and potential tenants aware of (i) the building's
energy consumption levels and patterns, and (ii) how the building's energy use compares
with that of similar buildings nationwide; and
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new text begin (2) enhance the likelihood that owners adopt energy conservation measures in the owners'
buildings as a way to reduce energy use, operating costs, and greenhouse gas emissions.
new text end

new text begin Subd. 3. new text end

new text begin Classification of covered properties. new text end

new text begin For the purposes of this section, a covered
property is classified as follows:
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new text begin Class new text end	new text begin Total Floor Area (sq. ft.) new text end
new text begin 1 new text end	new text begin 100,000 or more new text end
new text begin 2 new text end	new text begin 50,000 to 99,999 new text end

new text begin Subd. 4. new text end

new text begin Benchmarking requirement. new text end

new text begin (a) An owner must annually benchmark all
covered property owned as of December 31 in conformity with the schedule in subdivision
7. Energy use data must be compiled by:
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new text begin (1) obtaining the data from the utility providing the energy; or
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new text begin (2) reading a master meter.
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new text begin (b) Before entering information in a benchmarking tool, an owner must run all automated
data quality assurance functions available within the benchmarking tool and must correct
all data identified as missing or incorrect.
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new text begin (c) An owner who becomes aware that any information entered into a benchmarking
tool is inaccurate or incomplete must amend the information in the benchmarking tool within
30 days of the date the owner learned of the inaccuracy.
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new text begin (d) Nothing in this subdivision shall be construed to prohibit an owner of property that
is not a covered property from voluntarily benchmarking a property under this section.
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new text begin Subd. 5. new text end

new text begin Exemption by individual building. new text end

new text begin (a) The commissioner may exempt an
owner of a covered property from the requirements of subdivision 4 if the owner provides
evidence satisfactory to the commissioner that the covered property:
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new text begin (1) is presently experiencing financial distress;
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new text begin (2) has been less than 50 percent occupied during the previous calendar year;
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new text begin (3) does not have a certificate of occupancy or temporary certificate of occupancy for
the full previous calendar year;
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new text begin (4) was issued a demolition permit during the previous calendar year that remains current;
or
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new text begin (5) received no energy services for at least 30 days during the previous calendar year.
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new text begin (b) An exemption granted under this subdivision applies only to a single calendar year.
An owner must reapply to the commissioner each year an extension is sought.
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new text begin (c) Within 30 days of the date an owner makes a request under this paragraph, a tenant
of a covered property subject to this section must provide the owner with any information
regarding energy use of the tenant's rental unit that the property owner cannot otherwise
obtain and that is needed by the owner to comply with this section. The tenant must provide
the information required under this paragraph in a format approved by the commissioner.
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new text begin Subd. 6. new text end

new text begin Exemption by other government benchmarking program. new text end

new text begin Owners are
exempt from the requirements of subdivision 4 for a covered property if the property is
subject to a benchmarking requirement by the state, a city, or other political subdivision
with a benchmarking requirement that the commissioner determines is equivalent or more
stringent, as determined under subdivision 11, paragraph (b), than the benchmarking
requirement established in this section. This exemption applies in perpetuity unless or until
the benchmarking requirement is changed or revoked and the commissioner deems the
benchmarking requirement no longer equivalent nor more stringent.
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new text begin Subd. 7. new text end

new text begin Benchmarking schedule. new text end

new text begin (a) An owner must annually benchmark each covered
property for the previous calendar year according to the following schedule:
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new text begin (1) all Class 1 properties by June 1, 2024, and by every June 1 thereafter; and
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new text begin (2) all Class 2 properties by June 1, 2025, and by every June 1 thereafter.
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new text begin (b) Beginning June 1, 2024, an owner who is selling a covered property must provide
the following to the new owner at the time of sale:
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new text begin (1) benchmarking information for the most recent 12-month period, including monthly
energy use by source; or
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new text begin (2) ownership of the digital property record in the benchmarking tool through an online
transfer.
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new text begin Subd. 8. new text end

new text begin Utility data requirements. new text end

new text begin (a) On or before January 1, 2024, a qualifying
utility shall:
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new text begin (1) establish and implement an aggregation standard whereby:
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new text begin (i) an aggregated customer energy use data set may include customer energy use data
from no fewer than four customers. A single customer's energy use must not constitute more
than 50 percent of total energy consumption for the requested data set; and
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new text begin (ii) customer energy use data sets containing three or fewer customers or with a single
customer's energy use constituting more than 50 percent of total energy consumption may
be provided upon the written consent of:
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new text begin (A) all customers included in the requested data set, in cases of three or fewer customers;
or
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new text begin (B) any customer constituting more than 50 percent of total energy consumption for the
requested data set; and
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new text begin (2) prepare and make available customer energy use data and aggregated customer energy
use data upon the request of any owner.
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new text begin (b) Any customer energy use data that a qualified utility provides an owner pursuant to
this subdivision must be:
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new text begin (1) available on, or able to be requested through, an easily navigable web portal or online
request form using up-to-date standards for digital authentication;
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new text begin (2) provided to the owner within 30 days after receiving the owner's valid written or
electronic request;
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new text begin (3) provided for at least 24 consecutive months of energy consumption or as many
months of consumption data that are available if the owner has owned the building for less
than 24 months;
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new text begin (4) directly uploaded to the owner's benchmarking tool account, delivered in the
spreadsheet template specified by the benchmarking tool, or delivered in another format
approved by the commissioner;
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new text begin (5) provided to the owner on at least an annual basis until the owner revokes the request
for energy use data or sells the covered property; and
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new text begin (6) provided in monthly intervals, or the shortest available intervals based in billing.
new text end

new text begin (c) A qualifying utility that is a municipal utility shall be exempt from section 13.685,
Municipal Utility Customer Data, in the sharing of aggregated customer energy use data
for purposes of whole building benchmarking.
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new text begin (d) For covered properties that require customer consent under paragraph (a), clause (1),
item (ii), to access or share customer energy use data, the consent:
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new text begin (1) may be in written or electronic form;
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new text begin (2) may be provided in a lease agreement provision;
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new text begin (3) is valid until the utility customer revokes it; and
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new text begin (4) is not required if a utility customer vacates the covered building before explicitly
denying the owner consent to access and share the utility customer's energy-use data.
new text end

new text begin Subd. 9. new text end

new text begin Data collection and management. new text end

new text begin (a) The commissioner must:
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new text begin (1) collect benchmarking information generated by a benchmarking tool and other related
information for each covered property;
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new text begin (2) provide technical assistance to owners entering data into a benchmarking tool;
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new text begin (3) collaborate with the Department of Revenue to collect the data necessary for
establishing the covered building list annually; and
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new text begin (4) provide technical guidance to utilities in the establishment of data aggregation and
access tools.
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new text begin (b) Upon request of the commissioner, a county assessor shall provide readily available
property data necessary for the development of the covered property list, including but not
limited to gross floor area, property type, and owner information by January 15 annually.
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new text begin (c) The commissioner must:
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new text begin (1) rank benchmarked covered properties in each property class from highest to lowest
performance score, or, if a performance score is unavailable for a covered property, from
lowest to highest energy use intensity;
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new text begin (2) divide covered properties in each property class into four quartiles based on the
applicable measure in clause (1);
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new text begin (3) assign four stars to each covered property in the quartile of each property class with
the highest performance scores or lowest energy use intensities, as applicable;
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new text begin (4) assign three stars to each covered property in the quartile of each property class with
the second highest performance scores or second lowest energy use intensities, as applicable;
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new text begin (5) assign two stars to each covered property in the quartile of each property class with
the third highest performance scores or third lowest energy use intensities, as applicable;
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new text begin (6) assign one star to each covered property in the quartile of each property class with
the lowest performance scores or highest energy use intensities, as applicable; and
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new text begin (7) serve notice in writing to each owner identifying the number of stars assigned by the
commissioner to each of the owner's covered properties.
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new text begin Subd. 10. new text end

new text begin Data disclosure to public. new text end

new text begin (a) The commissioner must post on the department's
website and update by December 1 annually the following information for the previous
calendar year:
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new text begin (1) annual summary statistics on energy use for all covered properties;
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new text begin (2) annual summary statistics on energy use for all covered properties, aggregated by
covered property class, as defined in subdivision 3, city, and county;
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new text begin (3) the percentage of covered properties in each building class listed in subdivision 3
that are in compliance with the benchmarking requirements under subdivisions 4 to 7; and
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new text begin (4) for each covered property, at a minimum, report the address, the total energy use,
energy use intensity, annual greenhouse gas emissions, and an energy performance score,
if available.
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new text begin (b) The commissioner must post the information required under this subdivision for:
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new text begin (1) all Class 1 properties by November 1, 2025, and by every November 1 thereafter;
and
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new text begin (2) all Class 2 properties by November 1, 2026, and by every November 1 thereafter.
new text end

new text begin Subd. 11. new text end

new text begin Coordination with other benchmarking programs. new text end

new text begin (a) The commissioner
shall coordinate with any state agency or local government that implements its own energy
benchmarking program, including the coordination of reporting requirements.
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new text begin (b) This section does not restrict a local government from adopting or implementing an
ordinance or resolution that imposes more stringent benchmarking requirements. For purposes
of this section, a local government benchmarking program is more stringent if it:
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new text begin (1) requires buildings to be benchmarked that are not required to be benchmarked under
this section; or
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new text begin (2) requires benchmarking of information that is not required to be benchmarked under
this section.
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new text begin (c) Benchmarking program requirements of local governments must:
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new text begin (1) be at least as comprehensive in scope and application as the program operated under
this section; and
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new text begin (2) include annual enforcement of a penalty on covered properties that do not comply
with the local government's benchmarking ordinance.
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new text begin (d) Local governments must notify the commissioner of the local government's existing
benchmarking ordinance requirements. Local governments must notify the commissioner
of new, changed, or revoked ordinance requirements, which when made by December 31
would apply to the benchmarking schedule for the following year.
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new text begin (e) The commissioner shall make available for local governments who request it, all
benchmarking data for covered properties within the local government's jurisdiction by
December 1, annually.
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new text begin Subd. 12. new text end

new text begin Building performance disclosure to occupants. new text end

new text begin The commissioner must
provide disclosure materials for public display within a building to building owners, such
that building owners can prominently display the performance of the building. The materials
must include the number of stars assigned to the building by the commissioner under
subdivision 9, paragraph (c), and relevant explanation of rating.
new text end

new text begin Subd. 13. new text end

new text begin Notifications. new text end

new text begin By March 1 each year, the commissioner must notify the owner
of each covered property required to benchmark for the previous calendar year of the
requirement to benchmark by June 1 of that year.
new text end

new text begin Subd. 14. new text end

new text begin Program implementation. new text end

new text begin The commissioner may contract with an
independent third party to implement any or all of the commissioner's duties required under
this section. To implement the benchmarking program, the commissioner shall assist building
owners to increase energy efficiency and reduce greenhouse gas emissions from their
buildings, including by providing outreach, training, and technical assistance to building
owners to help their buildings come into compliance with the benchmarking program.
new text end

new text begin Subd. 15. new text end

new text begin Enforcement. new text end

new text begin By June 15 each year, the commissioner must notify the owner
of each covered property required to comply with this section that has failed to comply that
the owner has until July 15 to come into compliance, unless the owner requests an extension,
in which case the owner has until August 15 to come into compliance. If an owner fails to
comply with the requirements of this section by July 15 and fails to request an extension
by that date, or is given an extension and fails to comply by August 15, the commissioner
may impose a civil fine of $1,000 on the owner. The commissioner may by rule increase
the civil fine to adjust for inflation.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin (a) $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are appropriated
from the general fund to the commissioner of commerce to implement Minnesota Statutes,
section 216C.331. These appropriations are available until expended.
new text end

new text begin (b) $750,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of commerce to award grants to qualifying utilities that are not investor-owned utilities to
support the development of technology for implementing Minnesota Statutes, section
216C.331. Any balance does not cancel but is available until June 30, 2026.
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new text begin (c) $750,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of higher education for a grant to Building Owners and Managers Association Greater
Minneapolis to establish partnerships with three technical colleges and high school career
counselors with a goal of increasing the number of building engineers across Minnesota.
Any balance does not cancel but is available until June 30, 2028. The grant recipient must
provide a detailed report to the chairs and ranking minority members of the legislative
committees having jurisdiction over higher education by January 15 of each year until 2028,
describing how the grant funds were used. The report must describe the progress made
toward the goal of increasing the number of building engineers and strategies used.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end