Purpose

• Update Minnesota’s building code process to require rulemaking that adopts the 2024 International Energy Conservation Code (IECC) with no state-level amendments.
• Align Minnesota’s code system with model codes used nationwide while pursuing strong energy efficiency goals for both commercial and residential buildings.
• Establish clear schedules, review processes, and reporting requirements for adopting new model codes and tracking progress toward energy-saving targets.

Main Provisions

• Code adoption framework

  • The commissioner must create and enforce a State Building Code that covers structural design, construction, fire protection, health, sanitation, safety, heat loss control, illumination, and climate control. It must be based on widely accepted model codes, with the possibility to adopt by reference, and include administration duties, penalties, and certification actions.
  • The code should emphasize outcomes (desired results) rather than prescribing exact methods or materials, encouraging new methods and materials where feasible.
  • The commissioner oversees adoption and enforcement of the building code, in consultation with the Construction Codes Advisory Council.

• Plan review fees

  • The commissioner must develop rules for plan review fees for similar buildings with limited modifications, including how building systems are evaluated under the industrial-modular program. Fees must reflect the real costs of the services.

• Cadence for model code adoption

  • Starting with the 2018 edition, the commissioner reviews new model building codes every six years and adopts Minnesota versions within two years of the edition date.
  • The commissioner may adopt amendments before the new edition if it advances construction methods, technology, or materials, or to protect public health and safety or improve efficiency.

• Energy codes: commercial sector

  • Beginning in 2024, the commissioner will act on each new model commercial energy code by adopting the latest edition of ASHRAE 90.1 or a more efficient standard.
  • The commercial energy code in effect in 2036 and beyond must achieve an 80% reduction in annual net energy consumption (using ASHRAE 90.1-2004 as the baseline).
  • Minnesota will move toward the 80% reduction by adopting incremental changes from 2024 through 2036.
  • After each new commercial energy code is adopted, the commissioner must report progress to the Legislature by January 15 of the following year.

• Energy codes: residential sector

  • Beginning in 2026, the commissioner will act on each new model residential energy code by adopting the latest edition of the IECC or a more efficient standard.
  • The residential energy code in effect in 2038 and onward must achieve a 70% reduction in annual net energy consumption (using the 2006 State Level Residential Codes Energy Use Index as the baseline published by the U.S. DOE).
  • Minnesota will move toward the 70% reduction by adopting incremental changes from 2026 through 2038.
  • After each new residential energy code is adopted, the commissioner must report progress to the Legislature by January 15 of the following year.

• Incorporation of the 2024 IECC

  • The commissioner must adopt rules to incorporate the 2024 IECC as part of the State Building Code without any state-level amendments.

• Compliance with federal law and utilities

  • The requirement to act on new energy codes for commercial and residential sectors is aligned with federal law where applicable (e.g., DOE determinations).
  • Nothing in these provisions limits public utilities from offering energy efficiency programs or counting energy savings from those programs in utility plans or energy conservation and optimization plans approved by state authorities.

• Other references

  • The provisions reference related statutes and programs, including the Minnesota Code sections on building codes, energy plans, and utility energy programs.

Changes to Existing Law (Significant Shifts)

• Mandatory, no-amendment IECC incorporation

  • The bill requires incorporating the 2024 IECC into Minnesota’s State Building Code with no state-level modifications, which tightens alignment with national standards.

• Strong energy-efficiency targets

  • Introduces explicit, ambitious energy-reduction goals: 80% reduction for commercial buildings by 2036 and 70% for residential buildings by 2038, each using defined national baselines.
  • Requires ongoing progress reporting to legislative energy committees after each code adoption.

• Structured, rules-based adoption cadence

  • Establishes a formal six-year review cycle for model codes with a two-year adoption window, plus authority to adopt amendments ahead of schedule to enable new technologies or protect public welfare.

• Outward-facing outcome focus

  • Moves towards outcome-oriented code language emphasizing results (energy performance) rather than prescribing specific construction methods or materials.

• Utility program interplay

  • Maintains space for public utilities to offer energy-saving programs and count savings within approved plans, ensuring continued utility participation in energy efficiency efforts.

Implementation & Oversight (Key Implementation Points)

• Rulemaking and advisory collaboration

  • The commissioner must develop rules and work with the Construction Codes Advisory Council to implement the code standards and administration framework.

• Reporting requirements

  • After each new commercial or residential energy code adoption, the commissioner must provide a progress report to relevant legislative committees by January 15 of the following year.

• Administrative and enforcement provisions

  • The code will include procedures for plan reviews, administrative actions, penalties, and potential suspension or revocation of certification.

• Transitional and cost considerations

  • Plan review fees are tied to the actual costs of services, including considerations for similar building plans and modular/industrial approaches.

Relevant Terms - State Building Code - 2024 International Energy Conservation Code (IECC) - International Energy Conservation Code (IECC) - ASHRAE 90.1-2004 - ASHRAE 90.1 - Energy codes (commercial energy code, residential energy code) - Energy Use Index (Minnesota baseline) - DOE (Department of Energy) - United States Code title 42 section 6833 - Construction Codes Advisory Council - commissioner (Minnesota) - 326B.106; 326B.101 to 326B.194 (state building code statutes) - plan review fees - industrial-modular program - energy conservation and optimization plans - 216B.241; 216B.2403 (utility energy planning statutes)