HF3545

Purpose

This bill updates Minnesota’s approach to building energy codes. It aims to ensure codes reflect current model standards, establish clear administration rules, and set long-term goals for reducing energy use in commercial and residential buildings. It also includes provisions for fees, oversight, and progress reporting to the Legislature.

Key Provisions

• Code framework and administration

  • The commissioner, with the Construction Codes Advisory Council, must establish a code of standards for construction, reconstruction, alteration, and repair of buildings. The code covers structural design, fire protection, health and safety, and energy aspects such as heat loss, illumination, and climate control.
  • The code should align with generally accepted model building codes and may be adopted by reference, with modifications as needed.
  • The code must include administration duties, procedures for enforcement, penalties, and suspension or revocation of certifications.
  • The code should emphasize outcomes (desired results) over prescribing specific methods or materials and encourage new methods and materials.

• Plan review fees and related administration

  • Rules must address plan review fees for similar buildings without significant modifications, including the use of building systems under the industrial-modular program.
  • Additional plan review fees for similar plans must reflect the actual costs of providing the service.

• Updating model codes and amendments

  • Starting with the 2018 edition of model codes, the commissioner must review new model building codes every six years and adopt Minnesota-ready versions within two years of each edition, with possible amendments to advance construction methods or to protect health and safety.
  • For new model energy codes, the commissioner may adopt amendments ahead of the national adoption to improve efficiency or safety, and in line with federal law when the U.S. DOE has issued an affirmative determination.

• Energy code adoption timelines and targets

  • Commercial energy code:
  • Beginning in 2024, Minnesota must act on each new published edition of ASHRAE 90.1 (or a more efficient standard).
  • From 2024 through 2036, the commercial energy code must move toward achieving an 80% reduction in annual net energy consumption, using ASHRAE 90.1-2004 as the baseline.
  • By 2036 and beyond, the code must achieve at least an 80% reduction in annual net energy consumption, with progress reported after each new code adoption.
  • Residential energy code:
  • Beginning in 2026, Minnesota must act on each new published edition of the International Energy Conservation Code (IECC) (or a more efficient standard).
  • From 2026 through 2038, the residential energy code must move toward achieving a 70% reduction in annual net energy consumption, using the 2006 IECC State Level Residential Codes Energy Use Index as the baseline.
  • By 2038 and beyond, the residential code must meet or exceed a 70% reduction, with progress reported after each new code adoption.

• Progress reporting

  • Following each adopted code, the commissioner must submit a progress report to the legislative committees that oversee the energy code by January 15 of the following year.

• Utilities and energy savings programs

  • Nothing in the section limits a public utility from offering code support programs or from counting energy savings achieved through such programs in its energy savings plans or utility filings.

Impact on Existing Law

• The bill updates the statutory framework for adopting and enforcing building and energy codes, shifting toward a structured, outcome-based approach and long-term energy-use reductions.
• It preserves the authority to adopt model codes with Minnesota-specific amendments while formalizing fee rules, administrative procedures, and mandatory progress reporting to the Legislature.
• It explicitly ties commercial and residential energy-code updates to recognized national standards (ASHRAE 90.1 and IECC) and sets ambitious energy-reduction targets for new code cycles.

Practical Effects

• Builders and designers would need to prepare for updates aligned with the latest ASHRAE 90.1 and IECC editions as they are adopted in Minnesota.
• Jurisdictions would see recurring two-part cycles: regular code updates (every edition) plus multi-year targets to achieve substantial reductions in energy use.
• Public utilities may continue to implement energy efficiency programs, and the savings from those programs would remain eligible for certain regulatory frameworks.

Significant Changes to Law

• Establishes explicit, long-term energy-reduction targets tied to updated national model codes.
• Introduces scheduled reviews and new adoption deadlines for model codes (both building and energy codes).
• Adds or clarifies the framework for plan review fees and the use of modular building systems.
• Reinforces the role of the commissioner in adopting and amending codes to advance energy efficiency, health, and safety.

Relevant Terms - Minnesota energy codes - ASHRAE 90.1 - IECC (International Energy Conservation Code) - commercial energy code - residential energy code - energy code adoption timelines - 80 percent reduction (commercial) - 70 percent reduction (residential) - ASHRAE 90.1-2004 baseline - 2006 IECC baseline (State Level Residential Codes Energy Use Index) - 326B.106 subdivision 1 - 326B.194 (industrial-modular program) - plan review fees - model building codes - energy conservation and optimization plans - federal law, DOE determinations (42 U.S.C. 6833) - public utility code support programs