HF 4241

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/14/2022 03:09pm

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; 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.
new text end

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.
new text end

new text begin (b) "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.
new text end

new text begin (c) "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:
new text end

new text begin (1) address;
new text end

new text begin (2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;
new text end

new text begin (3) total floor area, expressed in square feet;
new text end

new text begin (4) energy use intensity;
new text end

new text begin (5) greenhouse gas emissions; and
new text end

new text begin (6) energy performance score comparing the building's energy use with that of similar
buildings.
new text end

new text begin (d) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
new text end

new text begin (e) "Covered property" means a building whose total floor area is equal to or greater
than 50,000 square feet. Covered property does not include:
new text end

new text begin (1) a residential property containing fewer than five dwelling units;
new text end

new text begin (2) a property classified as manufacturing under the North American Industrial
Classification System (NAICS); or
new text end

new text begin (3) other property types that do not meet the purposes of this section, as determined by
the commissioner.
new text end

new text begin (f) "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.
new text end

new text begin (g) "Energy audit" has the meaning given in section 216C.435, subdivision 4.
new text end

new text begin (h) "Energy intensity" means the total annual energy consumed in a building divided by
the building's total floor area.
new text end

new text begin (i) "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.
new text end

new text begin (j) "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.
new text end

new text begin (k) "Financial distress" means a covered property that, at the time benchmarking is
conducted:
new text end

new text begin (1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
new text end

new text begin (2) is controlled by a court-appointed receiver based on financial distress;
new text end

new text begin (3) is owned by a financial institution through default by the borrower;
new text end

new text begin (4) has been acquired by deed in lieu of foreclosure; or
new text end

new text begin (5) has a senior mortgage that is subject to a notice of default.
new text end

new text begin (l) "Owner" means (1) an individual or entity that possesses title to a covered property,
or (2) an agent authorized to act on behalf of the covered property owner.
new text end

new text begin (m) "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.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A building energy benchmarking program is established in the
department. The purpose of the program is to:
new text end

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
new text end

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:
new text end

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 150,000 or more new text end
new text begin 2 new text end	new text begin 100,000 to 149,999 new text end
new text begin 3 new text end	new text begin 75,000 to 99,999 new text end
new text begin 4 new text end	new text begin 50,000 to 74,999 new text end

new text begin Subd. 4. new text end

new text begin Benchmarking requirement. new text end

new text begin (a) In conformity with the schedule in subdivision
6, an owner must annually benchmark all covered property owned as of December 31 during
the previous calendar year. Energy use data must be compiled by:
new text end

new text begin (1) obtaining the data from the utility providing the energy; or
new text end

new text begin (2) reading a master meter.
new text end

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 missing or incorrect data identified.
new text end

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.
new text end

new text begin Subd. 5. new text end

new text begin Exemption. new text end

new text begin (a) The commissioner may exempt an owner from the requirements
of subdivision 4 for a covered property if the owner provides evidence satisfying the
commissioner that the covered property:
new text end

new text begin (1) is presently experiencing financial distress;
new text end

new text begin (2) has been less than 50 percent occupied during the previous calendar year;
new text end

new text begin (3) does not have a certificate of occupancy or temporary certificate of occupancy for
the full previous calendar year;
new text end

new text begin (4) was issued a demolition permit during the previous calendar year that remains current;
new text end

new text begin (5) received no energy services for at least 30 days during the previous calendar year;
or
new text end

new text begin (6) is participating in a benchmarking program operated by a city or other political
subdivision that the commissioner determines is equivalent to the benchmarking program
established in this section.
new text end

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.
new text end

new text begin (c) Within 30 days of the date an owner makes a request under this paragraph, each
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.
new text end

new text begin Subd. 6. new text end

new text begin Benchmarking schedule. new text end

new text begin An owner must annually benchmark each covered
property for the previous calendar year according to the following schedule:
new text end

new text begin (1) all Class 1 properties by June 1, 2023, and by every June 1 thereafter;
new text end

new text begin (2) all Class 2 properties by June 1, 2024, and by every June 1 thereafter;
new text end

new text begin (3) all Class 3 properties by June 1, 2025, and by every June 1 thereafter; and
new text end

new text begin (4) all Class 4 properties by June 1, 2026, and by every June 1 thereafter.
new text end

new text begin Subd. 7. new text end

new text begin Energy audit. new text end

new text begin (a) The commissioner must notify in writing an owner of a
building whose energy performance score is 25 or lower or whose calculated energy intensity
is among the highest 25 percent compared to similar building types within the building's
class, as determined by the commissioner, that, except as provided in paragraph (c), the
owner is required to contract for an energy audit of the building no later than one year after
the notice is issued, unless the commissioner extends the deadline.
new text end

new text begin (b) The commissioner must award a grant to an owner who completes an energy audit
after receiving notice under this subdivision. The grant amount must be the lower of $.......
or ... percent of the cost of the audit. An owner must not receive more than one grant under
this subdivision.
new text end

new text begin (c) If a building owner that receives notice under this subdivision submits evidence to
the commissioner's satisfaction that an energy audit of the building that is the subject of the
notice was conducted within the previous five years, the owner is exempt from the
requirement to conduct an energy audit.
new text end

new text begin Subd. 8. new text end

new text begin Data collection and management. new text end

new text begin (a) The commissioner must:
new text end

new text begin (1) collect benchmarking information generated by a benchmarking tool and other related
information for each covered property;
new text end

new text begin (2) provide technical assistance to owners entering data into a benchmarking tool; and
new text end

new text begin (3) collaborate with utilities regarding the provision of energy use information to owners
and tenants to enable owners to comply with this section.
new text end

new text begin (b) A utility must comply with a request from the commissioner to provide energy use
information to the commissioner or to an owner that is needed to effectively operate the
energy benchmarking program.
new text end

new text begin (c) The commissioner must:
new text end

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;
new text end

new text begin (2) divide covered properties in each property class into four quartiles based on the
applicable measure in clause (1);
new text end

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;
new text end

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;
new text end

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;
new text end

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
new text end

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.
new text end

new text begin Subd. 9. 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 annually the following information for the previous calendar year:
new text end

new text begin (1) annual summary statistics on energy use for all covered properties in Minnesota;
new text end

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;
new text end

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 6; and
new text end

new text begin (4) for each covered property, at a minimum, total energy use, energy use per square
foot of total floor area, annual greenhouse gas emissions, and an energy performance score,
if available.
new text end

new text begin (b) The commissioner must post the information required under this subdivision for each
class of covered property beginning one year after the date the initial benchmarking
submission is made by the owner under the schedule in subdivision 6.
new text end

new text begin Subd. 10. new text end

new text begin Building performance disclosure to potential tenants. new text end

new text begin An owner must, on
any application provided to a potential tenant seeking to rent a unit in a covered property,
include the following language in a 12-point or larger font on the first page of the application:
"This building has received a [insert number of stars assigned to the building by the
commissioner under subdivision 8, paragraph (c)] star rating of the building's energy
efficiency from the Minnesota Department of Commerce, where four stars represents the
most energy efficient buildings and one star represents the least energy efficient buildings."
new text end

new text begin Subd. 11. new text end

new text begin Notifications. new text end

new text begin (a) 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 (b) By July 15 each year, the commissioner must notify the owner of each covered
property required to benchmark for the previous calendar year that has failed to benchmark
that the owner has 30 days to comply with the benchmarking requirement.
new text end

new text begin Subd. 12. 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 duties required of the commissioner
under subdivisions 2 to 10.
new text end

new text begin Subd. 13. new text end

new text begin Enforcement. new text end

new text begin If the commissioner determines that an owner has failed to
benchmark in a timely, complete, and accurate fashion as required under this section, the
commissioner may impose on the owner a civil fine of $........ Each day that the owner fails
to benchmark to the satisfaction of the commissioner for each covered property owned by
the owner may be deemed a separate offense and the commissioner may impose a separate
civil penalty.
new text end

new text begin Subd. 14. new text end

new text begin Rules. new text end

new text begin The commissioner is authorized to adopt rules under chapter 14 to
implement this section.
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

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

new text begin $....... in fiscal year 2023 and $....... in fiscal year 2024 are appropriated from the general
fund to the commissioner of commerce to award grants under and implement Minnesota
Statutes, section 216C.331. These appropriations are available until expended.
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