HF4702

Purpose

• The bill would require the legislative auditor to conduct a cost-benefit analysis about sustainability-related building standards used in state capital projects that are financed with general obligation bond proceeds.

Main provisions

• The legislative auditor must perform a cost-benefit analysis comparing two approaches for a capital project funded with state general obligation bond proceeds:
  • continue applying the sustainable building guidelines under Minnesota Statutes section 16B.325, and
  • applying four specific sustainability-related standards to the project: LEED (Leadership in Energy and Environmental Design) ratings, ASHRAE standards and guidelines, Energy Star requirements, and the International Green Construction Code.
• The auditor may include additional information they deem relevant beyond these standards.
• The analysis must be submitted to the chairs and ranking minority members of the legislative committees with jurisdiction over capital investment by January 15, 2027.

Significant changes to current law

• Creates a formal, one-time requirement for a cost-benefit analysis by the legislative auditor focused on sustainability standards for capital projects funded with GO bond proceeds.
• Explicitly specifies four standards to be considered (LEED, ASHRAE, Energy Star, International Green Construction Code) and references the existing guidelines under Minnesota Statutes 16B.325.
• Establishes a reporting deadline and allows the auditor to include additional information beyond the listed standards.

Funding and timing

• Funding: Appropriates a one-time general fund amount in fiscal year 2027 to the legislative auditor to conduct the analysis.
• Timing: The analysis must be completed and submitted by January 15, 2027.

Practical impact

• State capital projects financed with GO bonds would be evaluated to determine if replacing or adjusting the current guidelines (as set out in 16B.325) with the four specified standards provides a better cost-benefit outcome.
• The bill does not immediately change project requirements but creates a formal study to guide potential future policy decisions.

Relevant Terms - sustainable building guidelines - Minnesota Statutes section 16B.325 - LEED - ASHRAE - Energy Star - International Green Construction Code - cost-benefit analysis - legislative auditor - general obligation bond proceeds - capital investment - fiscal year 2027 - onetime appropriation - January 15, 2027