<a id="pl.1.3"></a><var>1.3</var>usage performance standards;amending Minnesota Statutes 2006, section <br/>
<a id="pl.1.4"></a><var>1.4</var>16B.325; Minnesota Statutes 2007 Supplement, section 216B.241, subdivision <br/>
<a id="pl.1.5"></a><var>1.5</var>1e, by adding a subdivision.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.7"></a><var>1.7</var>    Section 1. Minnesota Statutes 2006, section 16B.325, is amended to read:<br/>
<a id="pl.1.8"></a><var>1.8</var><b>16B.325 SUSTAINABLE BUILDING GUIDELINES.</b><br/>
<a id="pl.1.9"></a><var>1.9</var>    Subdivision 1. <b>Development of sustainable building guidelines.</b> The Department <br/>
<a id="pl.1.10"></a><var>1.10</var>of Administration and the Department of Commerce, with the assistance of other agencies, <br/>
<a id="pl.1.11"></a><var>1.11</var>shall develop sustainable building design guidelines for all new state buildings by January <br/>
<a id="pl.1.12"></a><var>1.12</var>15, 2003, and for all major renovations of state buildings by February 1, 2009. The <br/>
<a id="pl.1.13"></a><var>1.13</var>primary objectives of these guidelines are to ensure that all new state buildings, and <br/>
<a id="pl.1.14"></a><var>1.14</var>major renovations of state buildings, initially exceed existing the state energy code, as <br/>
<a id="pl.1.15"></a><var>1.15</var>established in Minnesota Rules, chapter 7676, by at least 30 percent. <br/>
<a id="pl.1.16"></a><var>1.16</var>    Subd. 2. <b>Lowest possible cost; energy conservation.</b> The guidelines must focus <br/>
<a id="pl.1.17"></a><var>1.17</var>on achieving the lowest possible lifetime cost for new buildings and major renovations, <br/>
<a id="pl.1.18"></a><var>1.18</var>and allow for changes in the guidelines that encourage continual energy conservation <br/>
<a id="pl.1.19"></a><var>1.19</var>improvements in new buildings. and major renovations. The guidelines must define <br/>
<a id="pl.1.20"></a><var>1.20</var>"major renovations" for purposes of this section. The definition may not allow "major <br/>
<a id="pl.1.21"></a><var>1.21</var>renovations" to encompass less than 10,000 square feet or to encompass less than the <br/>
<a id="pl.1.22"></a><var>1.22</var>replacement of the mechanical, ventilation, or cooling system of the building or a section <br/>
<a id="pl.1.23"></a><var>1.23</var>of the building. The design guidelines must establish sustainability guidelines that include <br/>
<a id="pl.1.24"></a><var>1.24</var>air quality and lighting standards and that create and maintain a healthy environment <br/>
<a id="pl.2.1"></a><var>2.1</var>and facilitate productivity improvements; must specify ways to reduce material costs; <br/>
<a id="pl.2.2"></a><var>2.2</var>and must consider the long-term operating costs of the building, including the use of <br/>
<a id="pl.2.3"></a><var>2.3</var>renewable energy sources and distributed electric energy generation that uses a renewable <br/>
<a id="pl.2.4"></a><var>2.4</var>source or natural gas or a fuel that is as clean or cleaner than natural gas. <br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 3. <b>Development of guidelines; applicability.</b> In developing the guidelines, <br/>
<a id="pl.2.6"></a><var>2.6</var>the departments shall use an open process, including providing the opportunity for public <br/>
<a id="pl.2.7"></a><var>2.7</var>comment. The guidelines established under this section are mandatory for all new <br/>
<a id="pl.2.8"></a><var>2.8</var>buildings receiving funding from the bond proceeds fund after January 1, 2004, and for all <br/>
<a id="pl.2.9"></a><var>2.9</var>major renovations receiving funding from the bond proceeds fund after February 1, 2009.<br/>
<a id="pl.2.10"></a><var>2.10</var>    Subd. 4. <b>Revisions.</b> The commissioners of administration and commerce shall <br/>
<a id="pl.2.11"></a><var>2.11</var>review the guidelines periodically and as soon as practicable revise the guidelines to <br/>
<a id="pl.2.12"></a><var>2.12</var>incorporate performance standards developed under section 216B.241, subdivision 9.<br/>
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<a id="bill.0.2.0"></a><a id="pl.2.13"></a><var>2.13</var>    Sec. 2. Minnesota Statutes 2007 Supplement, section 216B.241, subdivision 1e, <br/>
<a id="pl.2.14"></a><var>2.14</var>is amended to read:<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 1e. <b>Applied research and development grants.</b> (a) The commissioner <br/>
<a id="pl.2.16"></a><var>2.16</var>may, by order, approve and make grants for applied research and development projects <br/>
<a id="pl.2.17"></a><var>2.17</var>of general applicability that identify new technologies or strategies to maximize energy <br/>
<a id="pl.2.18"></a><var>2.18</var>savings, improve the effectiveness of energy conservation programs, or document <br/>
<a id="pl.2.19"></a><var>2.19</var>the carbon dioxide reductions from energy conservation programs. When approving <br/>
<a id="pl.2.20"></a><var>2.20</var>projects, the commissioner shall consider proposals and comments from utilities and <br/>
<a id="pl.2.21"></a><var>2.21</var>other interested parties. The commissioner may assess up to $3,600,000 annually for the <br/>
<a id="pl.2.22"></a><var>2.22</var>purposes of this subdivision. The assessments must be deposited in the state treasury <br/>
<a id="pl.2.23"></a><var>2.23</var>and credited to the energy and conservation account created under subdivision 2a. An <br/>
<a id="pl.2.24"></a><var>2.24</var>assessment made under this subdivision is not subject to the cap on assessments provided <br/>
<a id="pl.2.25"></a><var>2.25</var>by section 
         <statute_ref>216B.62</statute_ref>, or any other law.<br/>
<a id="pl.2.26"></a><var>2.26</var>    (b) The commissioner, as part of the assessment authorized under paragraph (a), <br/>
<a id="pl.2.27"></a><var>2.27</var>shall annually assess and grant up to $500,000 for the purpose of subdivision 9.<br/>
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<a id="bill.0.3.0"></a><a id="pl.2.28"></a><var>2.28</var>    Sec. 3. Minnesota Statutes 2007 Supplement, section 216B.241, is amended by adding <br/>
<a id="pl.2.29"></a><var>2.29</var>a subdivision to read:<br/>
<a id="pl.2.30"></a><var>2.30</var>    Subd. 9. <b>Building performance standards; Sustainable Building 2030.</b> (a) The <br/>
<a id="pl.2.31"></a><var>2.31</var>purpose of this subdivision is to establish cost-effective energy-efficiency performance <br/>
<a id="pl.2.32"></a><var>2.32</var>standards for new and substantially reconstructed residential, commercial, industrial, <br/>
<a id="pl.2.33"></a><var>2.33</var>and institutional buildings that can significantly reduce carbon dioxide emissions by <br/>
<a id="pl.2.34"></a><var>2.34</var>lowering energy use in new and substantially reconstructed buildings. For the purposes of <br/>
<a id="pl.3.1"></a><var>3.1</var>this subdivision, the establishment of these standards may be referred to as Sustainable <br/>
<a id="pl.3.2"></a><var>3.2</var>Building 2030.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (b) The commissioner shall contract with the Center for Sustainable Building <br/>
<a id="pl.3.4"></a><var>3.4</var>Research at the University of Minnesota to coordinate development and implementation <br/>
<a id="pl.3.5"></a><var>3.5</var>of energy-efficiency performance standards, strategic planning, research, data analysis, <br/>
<a id="pl.3.6"></a><var>3.6</var>technology transfer, training, and other activities related to the purpose of Sustainable <br/>
<a id="pl.3.7"></a><var>3.7</var>Building 2030. The commissioner and the Center for Sustainable Building Research <br/>
<a id="pl.3.8"></a><var>3.8</var>shall, in consultation with utilities and experts in building design and technology, develop <br/>
<a id="pl.3.9"></a><var>3.9</var>a Sustainable Building 2030 implementation plan that must address, at a minimum, the <br/>
<a id="pl.3.10"></a><var>3.10</var>following issues:<br/>
<a id="pl.3.11"></a><var>3.11</var>    (1) training architects to incorporate the performance standards in building design;<br/>
<a id="pl.3.12"></a><var>3.12</var>    (2) incorporating the performance standards in utility conservation improvement <br/>
<a id="pl.3.13"></a><var>3.13</var>programs; and<br/>
<a id="pl.3.14"></a><var>3.14</var>    (3) developing procedures for ongoing monitoring of energy use in buildings that <br/>
<a id="pl.3.15"></a><var>3.15</var>have adopted the performance standards.<br/>
<a id="pl.3.16"></a><var>3.16</var>The plan must be submitted to the chairs and ranking minority members of the senate and <br/>
<a id="pl.3.17"></a><var>3.17</var>house of representatives committees with primary jurisdiction over energy policy by <br/>
<a id="pl.3.18"></a><var>3.18</var>July 1, 2009.<br/>
<a id="pl.3.19"></a><var>3.19</var>    (c) Sustainable Building 2030 energy-efficiency performance standards must be firm, <br/>
<a id="pl.3.20"></a><var>3.20</var>quantitative measures of total building energy use and associated carbon dioxide emissions <br/>
<a id="pl.3.21"></a><var>3.21</var>per square foot for different building types and uses, that allow for accurate determinations <br/>
<a id="pl.3.22"></a><var>3.22</var>of a building's conformance with a performance standard. The energy-efficiency <br/>
<a id="pl.3.23"></a><var>3.23</var>performance standards must be updated every three or five years to incorporate all <br/>
<a id="pl.3.24"></a><var>3.24</var>cost-effective measures. The performance standards must reflect the reductions in carbon <br/>
<a id="pl.3.25"></a><var>3.25</var>dioxide emissions per square foot resulting from actions taken by utilities to comply <br/>
<a id="pl.3.26"></a><var>3.26</var>with the renewable energy standards in section 216B.1691. The performance standards <br/>
<a id="pl.3.27"></a><var>3.27</var>should be designed to achieve reductions equivalent to the following reduction schedule, <br/>
<a id="pl.3.28"></a><var>3.28</var>measured against energy consumption by an average building in each applicable building <br/>
<a id="pl.3.29"></a><var>3.29</var>sector in 2003: (1) 60 percent in 2010; (2) 70 percent in 2015; (3) 80 percent in 2020; <br/>
<a id="pl.3.30"></a><var>3.30</var>and (4) 90 percent in 2025. A performance standard must not be established or increased <br/>
<a id="pl.3.31"></a><var>3.31</var>absent a conclusive engineering analysis that it is cost-effective based upon established <br/>
<a id="pl.3.32"></a><var>3.32</var>practices used in evaluating utility conservation improvement programs.<br/>
<a id="pl.3.33"></a><var>3.33</var>    (d) The annual amount of the contract with the Center for Sustainable Building <br/>
<a id="pl.3.34"></a><var>3.34</var>Research is up to $500,000. The Center for Sustainable Building Research shall expend <br/>
<a id="pl.3.35"></a><var>3.35</var>no more than $150,000 of this amount each year on administration, coordination, and <br/>
<a id="pl.3.36"></a><var>3.36</var>oversight activities related to Sustainable Building 2030. The balance of contract funds <br/>
<a id="pl.4.1"></a><var>4.1</var>must be spent for subcontracts with not-for-profit energy organizations, architecture and <br/>
<a id="pl.4.2"></a><var>4.2</var>engineering firms, and other qualified entities to undertake technical projects and activities <br/>
<a id="pl.4.3"></a><var>4.3</var>in support of Sustainable Building 2030. The primary work to be accomplished each <br/>
<a id="pl.4.4"></a><var>4.4</var>year by qualified technical experts under subcontracts is the development and thorough <br/>
<a id="pl.4.5"></a><var>4.5</var>justification of recommendations for specific energy-efficiency performance standards. <br/>
<a id="pl.4.6"></a><var>4.6</var>Additional work may include:<br/>
<a id="pl.4.7"></a><var>4.7</var>    (1) research, development, and demonstration of new energy-efficiency technologies <br/>
<a id="pl.4.8"></a><var>4.8</var>and techniques suitable for residential, commercial, industrial, and institutional buildings;<br/>
<a id="pl.4.9"></a><var>4.9</var>    (2) analysis and evaluation of practices in building design, construction, <br/>
<a id="pl.4.10"></a><var>4.10</var>commissioning and operations, and analysis and evaluation of energy use in the residential, <br/>
<a id="pl.4.11"></a><var>4.11</var>commercial, industrial, and institutional sectors;<br/>
<a id="pl.4.12"></a><var>4.12</var>    (3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable <br/>
<a id="pl.4.13"></a><var>4.13</var>Building 2030 performance standards, conservation improvement programs, and building <br/>
<a id="pl.4.14"></a><var>4.14</var>energy codes;<br/>
<a id="pl.4.15"></a><var>4.15</var>    (4) development and delivery of training programs for architects, engineers, <br/>
<a id="pl.4.16"></a><var>4.16</var>commissioning agents, technicians, contractors, equipment suppliers, developers, and <br/>
<a id="pl.4.17"></a><var>4.17</var>others in the building industries; and<br/>
<a id="pl.4.18"></a><var>4.18</var>    (5) analyze and evaluate the effect of building operations on energy use.<br/>
<a id="pl.4.19"></a><var>4.19</var>    (e) The commissioner shall require utilities to develop and implement conservation <br/>
<a id="pl.4.20"></a><var>4.20</var>improvement programs that are expressly designed to achieve energy efficiency goals <br/>
<a id="pl.4.21"></a><var>4.21</var>consistent with the Sustainable Building 2030 performance standards. These programs <br/>
<a id="pl.4.22"></a><var>4.22</var>must include offerings of design assistance and modeling, financial incentives, and the <br/>
<a id="pl.4.23"></a><var>4.23</var>verification of the proper installation of energy-efficient design components in new <br/>
<a id="pl.4.24"></a><var>4.24</var>and substantially reconstructed buildings. A utility making an expenditure under its <br/>
<a id="pl.4.25"></a><var>4.25</var>conservation improvement program that results in a building meeting the Sustainable <br/>
<a id="pl.4.26"></a><var>4.26</var>Building 2030 performance standards may claim the energy savings toward its energy <br/>
<a id="pl.4.27"></a><var>4.27</var>savings goal established in section 216B.241, subdivision 1c.<br/>
<a id="pl.4.28"></a><var>4.28</var>    (f) The commissioner shall report to the legislature every three years, beginning <br/>
<a id="pl.4.29"></a><var>4.29</var>January 15, 2010, on the cost-effectiveness and progress of implementing the Sustainable <br/>
<a id="pl.4.30"></a><var>4.30</var>Building 2030 performance standards and shall make recommendations on the need to <br/>
<a id="pl.4.31"></a><var>4.31</var>continue the program as described in this section.<br/>
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<a id="bill.0.4.0"></a><a id="pl.4.32"></a><var>4.32</var>    Sec. 4. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.4.33"></a><var>4.33</var>    Sections 1 to 3 are effective the day following final enactment.<br/>