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HF 5312

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/08/2024 02:15pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/05/2024

Current Version - as introduced

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A bill for an act
relating to capital investment; modifying the purposes, processes, and related
agency responsibilities for the sustainable building guidelines; adding sustainable
building guideline compliance to predesign requirements; requiring a report;
appropriating money; amending Minnesota Statutes 2022, sections 16B.325, as
amended; 16B.335, subdivision 4.

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

Section 1.

Minnesota Statutes 2022, section 16B.325, as amended by Laws 2023, chapter
60, article 12, section 2, is amended to read:


16B.325 SUSTAINABLE BUILDING GUIDELINES.

Subdivision 1.

deleted text begin Development ofdeleted text end Sustainable building guidelines.

The Department of
Administration and the Department of Commerce, with the assistance of other agencies,
shall develop new text begin and maintain new text end sustainable building design guidelines for all new state buildings
deleted text begin by January 15, 2003,deleted text end and for all major renovations of state buildings deleted text begin by February 1, 2009.
The primary objectives of these guidelines are to ensure that all new state buildings, and
major renovations of state buildings, initially exceed the state energy code, as established
in Minnesota Rules, chapter 7676, by at least 30 percent
deleted text end .

new text begin Subd. 1a. 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) "Capital project" or "project" means the acquisition or betterment of buildings or
other fixed assets and other improvements of a capital nature.
new text end

new text begin (c) "CSBR" means the Center for Sustainable Building Research at the University of
Minnesota.
new text end

new text begin (d) "Guidelines" means the sustainable building design guidelines developed under this
section.
new text end

new text begin (e) "Major renovation" means a project that:
new text end

new text begin (1) has a renovated conditioned area that is at least 10,000 square feet; and
new text end

new text begin (2) includes, at a minimum, the replacement of the mechanical, ventilation, or cooling
system of a building or a section of a building, whether or not the building is served by an
adjacent building or district system impacted by the scope of the project.
new text end

new text begin (f) "New building" means a newly constructed structure and additions to existing buildings
that include spaces that meet the following criteria:
new text end

new text begin (1) space is conditioned, whether or not its source of energy is from an adjacent building
or district system; and
new text end

new text begin (2) the project size is at least 10,000 gross square feet of conditioned space.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Lowest possible cost; energy conservation. deleted text end

deleted text begin The guidelines must:
deleted text end

deleted text begin (1) focus on achieving the lowest possible lifetime cost, considering both construction
and operating costs, for new buildings and major renovations;
deleted text end

deleted text begin (2) allow for revisions that encourage continual energy conservation improvements in
new buildings and major renovations;
deleted text end

deleted text begin (3) define "major renovations" for purposes of this section to encompass not less than
10,000 square feet or not less than the replacement of the mechanical, ventilation, or cooling
system of a building or a building section;
deleted text end

deleted text begin (4) establish sustainability guidelines that include air quality and lighting standards and
that create and maintain a healthy environment and facilitate productivity improvements;
deleted text end

deleted text begin (5) establish resiliency guidelines to encourage design that allows buildings to adapt to
and accommodate projected climate-related changes that are reflected in both acute events
and chronic trends, including but not limited to changes in temperature and precipitation
levels;
deleted text end

deleted text begin (6) specify ways to reduce material costs; and
deleted text end

deleted text begin (7) consider the long-term operating costs of the building, including the use of renewable
energy sources and distributed electric energy generation that uses a renewable source or
natural gas or a fuel that is as clean or cleaner than natural gas.
deleted text end

new text begin Subd. 2a. new text end

new text begin Guidelines; purpose. new text end

new text begin (a) The primary objectives of the guidelines are to:
new text end

new text begin (1) reduce greenhouse gas emissions across the project's life cycle by promoting the
design and operation of energy-efficient buildings and the development of renewable energy
sources;
new text end

new text begin (2) provide high-quality indoor environmental conditions to promote occupant health,
well-being, comfort, and productivity;
new text end

new text begin (3) develop processes that ensure that projects are designed and operating as intended
and that project impact can be measured;
new text end

new text begin (4) reduce water use and impacts on water resources;
new text end

new text begin (5) restore soil and water quality, enhance biodiversity, and provide sites supportive of
native species;
new text end

new text begin (6) reduce the embodied environmental impact of building materials; and
new text end

new text begin (7) encourage design that allows building resilience to adapt to and accommodate
projected changes that are reflected in both acute events and chronic trends, including but
not limited to climate-related changes to temperature and precipitation levels.
new text end

new text begin (b) The guidelines must consider the following to meet the objectives in paragraph (a):
new text end

new text begin (1) the health and well-being of occupants;
new text end

new text begin (2) material impacts and sustainability;
new text end

new text begin (3) construction and operating costs;
new text end

new text begin (4) the use of renewable energy sources;
new text end

new text begin (5) diversion of waste from landfills;
new text end

new text begin (6) the impact of climate change;
new text end

new text begin (7) biodiversity and ecological impacts;
new text end

new text begin (8) resilience and adaptability; and
new text end

new text begin (9) any other factors the commissioner deems relevant.
new text end

Subd. 3.

deleted text begin Development of guidelines;deleted text end Applicability.

deleted text begin In developing the guidelines, the
departments shall use an open process, including providing the opportunity for public
comment.
deleted text end new text begin (a)new text end The guidelines established under this section are mandatory for all new
buildings new text begin and for all major renovations new text end receiving deleted text begin fundingdeleted text end new text begin an appropriationnew text end from the bond
proceeds fund deleted text begin after January 1, 2004, and for all major renovations receiving funding from
the bond proceeds fund after January 1, 2009
deleted text end .

new text begin (b) The guidelines established under this section are mandatory for all new buildings
and for all major renovations receiving an appropriation from the general fund after May
1, 2024.
new text end

Subd. 4.

new text begin Commissioner of administration; new text end guidelinenew text begin administration, oversight, andnew text end
revisions.

deleted text begin The commissioners of administration and commerce shall review the guidelines
periodically and as soon as practicable revise the guidelines to incorporate performance
standards developed under section 216B.241, subdivision 9.
deleted text end new text begin (a) The commissioner of
administration must review and amend the guidelines periodically to better meet the goals
under subdivision 6. Each guideline section must be reviewed and updated no less than once
every five years. The review must be conducted with the commissioner of commerce and
in consultation with other stakeholders. The commissioner of administration and the
commissioner of commerce must use an open process, including providing the opportunity
for public comment, when reviewing and amending the guidelines.
new text end

new text begin (b) The commissioner of administration is responsible for the following:
new text end

new text begin (1) making applicability determinations on which projects are required by state law to
follow the guidelines upon receipt of an applicability determination request from a project;
new text end

new text begin (2) approving or denying waiver requests for specific guidelines;
new text end

new text begin (3) approving or denying applicability requests for specific guidelines;
new text end

new text begin (4) updating the legislature regarding program outcomes;
new text end

new text begin (5) coordinating with the commissioner of commerce on the energy and atmosphere
guidelines, including coordination with the Sustainable Building 2030 Energy Standards
under section 216B.241, subdivision 9; and
new text end

new text begin (6) contracting with CSBR for the items in subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin CSBR; guideline administration and oversight. new text end

new text begin (a) The commissioner of
administration, in consultation with the commissioner of commerce, shall contract with
CSBR to implement the guidelines. At a minimum, CSBR must:
new text end

new text begin (1) maintain and update the guidelines in coordination with the commissioner of
administration and the commissioner of commerce;
new text end

new text begin (2) offer training on an annual basis to state agencies, project team members, and other
entities involved in the design of projects subject to the guidelines on how projects may
meet the guideline requirements;
new text end

new text begin (3) develop procedures for compliance with the guidelines, in accordance with the criteria
under subdivision 7;
new text end

new text begin (4) periodically conduct post-construction performance evaluations on projects to evaluate
the effectiveness of the guidelines in meeting the goals under subdivision 6;
new text end

new text begin (5) determine compliance of project designs with the guidelines;
new text end

new text begin (6) administer a tracking system for all projects subject to the guidelines and for projects
that received state funding for predesign or design that may seek further state funding for
additional project phases subject to the guidelines;
new text end

new text begin (7) develop and track measurable goals for the guidelines in accordance with subdivision
6;
new text end

new text begin (8) offer outreach, training, and technical assistance to state agencies, project team
members, and other entities with responsibility for managing, designing, and overseeing
projects subject to the guidelines;
new text end

new text begin (9) evaluate waiver requests and determinations on project scope and make
recommendations to the commissioner of administration;
new text end

new text begin (10) provide a report on or before December 1 annually to the commissioner of
administration on the following:
new text end

new text begin (i) the current compliance status of all projects subject to the guidelines;
new text end

new text begin (ii) an analysis of the effects of the guidelines on the goals under subdivision 6; and
new text end

new text begin (iii) waivers approved for projects, including both waivers from all of the guidelines
and waivers of individual guidelines; and
new text end

new text begin (11) perform any other duties required by the commissioner of administration to
administer the guidelines.
new text end

new text begin (b) State agencies, project team members, and other entities that are responsible for
managing or designing projects subject to the guidelines must provide any compliance data
requested by CSBR and the commissioner of administration that CSBR and the commissioner
deem necessary to fulfill the duties described under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Measurable goals. new text end

new text begin CSBR, in collaboration with the commissioner of
administration and the commissioner of commerce, must develop measurable goals for the
guidelines based on the objectives and considerations described in subdivision 2a. The
commissioner of administration must provide final approval of the goals under this
subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Procedures. new text end

new text begin The commissioner of administration must develop procedures for
the administration of the guidelines. The commissioner of administration may delegate
guideline administration responsibilities to state agencies. The procedures under this
subdivision must specify the administrative activities for which state agencies are responsible.
The procedures must include:
new text end

new text begin (1) criteria to identify whether a project is subject to the guidelines;
new text end

new text begin (2) information on project team member roles and guideline administration requirements
for each role;
new text end

new text begin (3) a process to notify projects subject to the guidelines of the guideline requirements;
new text end

new text begin (4) a guideline-related data submission process coordinated by the commissioner of
administration;
new text end

new text begin (5) activities and a timeline to monitor project compliance with the guidelines; and
new text end

new text begin (6) record-keeping requirements and related retention schedules for materials related to
guideline compliance.
new text end

new text begin Subd. 8. new text end

new text begin Guidelines waivers and scope determination. new text end

new text begin (a) The commissioner of
administration, in consultation with the commissioner of commerce and other stakeholders,
must develop a process for reviewing and approving waivers and scope determinations to
the guidelines.
new text end

new text begin (b) A waiver may apply to all of the guidelines or individual guidelines and may identify
an alternative path of meeting the intent of the guidelines.
new text end

new text begin (c) A waiver under this subdivision is only permitted due to technological limitations
or when the intended use of the project conflicts with the guidelines.
new text end

new text begin (d) A waiver request for a project owned by a state agency must be reviewed and
approved by the commissioner of administration. If the waiver request is for a project owned
by the Department of Administration, the waiver request must be approved by the
commissioner of commerce.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin The commissioner of administration must report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over capital investment and climate and energy by February 1 of each year. The
report must include:
new text end

new text begin (1) information on the current status of all projects subject to the guidelines from the
previous five years and the projects' compliance with the guidelines;
new text end

new text begin (2) an analysis of the effects of the guidelines on the measurable goals under subdivision
6;
new text end

new text begin (3) progress made toward the recommendations in the report required under Laws 2023,
chapter 71, article 1, section 6, subdivision 4; and
new text end

new text begin (4) any other information the commissioner of administration deems relevant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 16B.335, subdivision 4, is amended to read:


Subd. 4.

new text begin Sustainable buildings; new text end energy conservation.

A recipient to whom a direct
appropriation is made for a capital improvement project shall ensure that the project complies
with the applicable new text begin sustainable building guidelines and new text end energy conservation standards
contained in law, including sections new text begin 16B.325 and new text end 216C.19 to 216C.20, and rules adopted
thereunder. The recipient may obtain information and technical assistance from the
new text begin commissioner of administration on the sustainable building guidelines and the new text end State Energy
Office in the Department of Commerce on energy conservation and alternative energy
development relating to the planning and construction of the capital improvement project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 3. new text begin APPROPRIATION; DEPARTMENT OF ADMINISTRATION.
new text end

new text begin $1,564,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of administration to develop, oversee, and administer the sustainable building guidelines
under Minnesota Statutes, section 16B.325, in consultation with the commissioner of
commerce and the Center for Sustainable Building Research at the University of Minnesota.
This appropriation includes money for the commissioner of administration to contract with
the Center for Sustainable Building Research at the University of Minnesota to administer
the guidelines. The base for this appropriation is $1,555,000 in fiscal year 2026 and
$1,128,000 in fiscal year 2027 and thereafter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end