HF 4242

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/25/2024 03:39pm

A bill for an act
relating to the State Building Code; modifying residential energy code adoption
standards and timelines; creating the residential energy rating rebate program;
requiring reports; appropriating money; amending Minnesota Statutes 2023
Supplement, section 326B.106, subdivision 1.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is
amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. The
commissioner may adopt amendments prior to adoption of the new energy codes, as amended
for use in Minnesota, to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or use of a building.

(e) Beginning in 2024, the commissioner shall act on the new model commercial energy
code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard.
The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent
reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a
baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that
incrementally move toward achieving the 80 percent reduction in annual net energy
consumption. By January 15 of the year following each new code adoption, the commissioner
shall make a report on progress under this section to the legislative committees with
jurisdiction over the energy code.

(f) Nothing in this section shall be interpreted to limit the ability of a public utility to
offer code support programs, or to claim energy savings resulting from such programs,
through its energy conservation and optimization plans approved by the commissioner of
commerce under section 216B.241 or an energy conservation and optimization plan filed
by a consumer-owned utility under section 216B.2403.

new text begin (g) Beginning in 2026, the commissioner shall act on the new model residential energy
code by adopting each new published edition of the International Energy Conservation Code
or a more efficient standard. The residential energy code in effect in 2038 and thereafter
must achieve a 70 percent reduction in annual net energy consumption or greater, using the
2006 International Energy Conservation Code State Level Residential Codes Energy Use
Index for Minnesota, as published by the United States Department of Energy's Building
Energy Codes Program, as a baseline. The commissioner shall adopt residential energy
codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction
in annual net energy consumption. Requirements must be adopted such that electricity-only
and mixed-fuel buildings attain the same site energy use intensity. By January 15 of the
year following each new code adoption, the commissioner shall make a report on progress
under this section to the legislative committees with jurisdiction over the energy code.
new text end

Sec. 2. new text begin RESIDENTIAL ENERGY RATING REBATE PROGRAM.
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) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Program" or "the program" means the residential energy rating rebate program
established under this section.
new text end

new text begin (d) "Qualifying unit" means a residential living space occupied by an individual or a
household that has been certified by the United States Department of Energy's Zero Energy
Ready Home Program and that is located in a building with no more than 12 residential
dwelling units. Individual units may qualify independently, without regard to the certification
status of another unit in a building or another structure on a lot.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin By September 1, 2024, the commissioner must establish a
residential energy rating rebate program to provide financial assistance to owners, builders,
and developers of qualifying units with the costs of certification under the United States
Department of Energy's Zero Energy Ready Home Program.
new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin (a) Applicants must apply for rebates using a form
developed by the commissioner that demonstrates, at a minimum:
new text end

new text begin (1) that the qualifying unit received a certification under the version of the United States
Department of Energy's Zero Energy Ready Home Program that was in effect at the time
the qualifying unit received its building permit; and
new text end

new text begin (2) proof of payment for energy rating services done by a verifier partner of the United
States Department of Energy Zero Energy Ready Home Program.
new text end

new text begin (b) Applicants must submit a copy of the final energy rating report completed by the
verifier partner.
new text end

new text begin (c) Applications must be considered on a rolling basis according to criteria developed
by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin The commissioner must award rebates to applicants in an
amount that equals the amount that the applicant paid for energy rating services certified
by third parties necessary for certification by the United States Department of Energy's Zero
Energy Ready Home Program, including the travel and lodging costs for site visits of energy
rating professionals, subject to the following limitations:
new text end

new text begin (1) the maximum award per qualifying unit of single-family housing is $5,000;
new text end

new text begin (2) the maximum award per qualifying unit of all other types of housing is $2,500;
new text end

new text begin (3) no applicant may receive more than $15,000 in rebates for qualifying units in a single
building; and
new text end

new text begin (4) no qualifying unit may receive more than one rebate.
new text end

new text begin Subd. 5. new text end

new text begin Outreach. new text end

new text begin The commissioner must publicize the availability of rebates under
this section to, at a minimum:
new text end

new text begin (1) construction, energy, and architecture professionals;
new text end

new text begin (2) building officials; and
new text end

new text begin (3) affordable and nonprofit housing developers.
new text end

new text begin Subd. 6. new text end

new text begin Reports. new text end

new text begin By January 15 of each year, beginning in 2026, the commissioner
must submit a report to the chairs and ranking minority members of the legislative committees
with primary responsibility for climate and energy policy that summarizes program outcomes
for the prior year, including, at a minimum:
new text end

new text begin (1) the number of rebates awarded;
new text end

new text begin (2) the number of rebates awarded to single-family homes versus other types of housing;
and
new text end

new text begin (3) the mean and median amounts of the rebates awarded.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2029.
new text end

Sec. 3. new text begin RESIDENTIAL ENERGY RATING REBATE PROGRAM;
APPROPRIATION.
new text end

new text begin $600,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of commerce for the residential energy rating rebate program. Of this amount, up to $100,000
may be used for administration of the program and outreach and technical assistance to
applicants. This appropriation is onetime and is available until June 30, 2029.
new text end