SF3858 (Legislative Session 94 (2025-2026))
Sustainability provisions modification
Related bill: HF3737
AI Generated Summary
Purpose
The bill updates and expands how the state manages energy and water use in government buildings. It aims to push buildings to use less energy and water, incorporate more renewable energy, track and report usage, and support better management through a new enterprise sustainability office.
Main Provisions
Sec. 1: Building energy standards and energy sources
- If simply adding cost-effective energy efficiency measures doesn’t meet the Sustainable Building 2030 energy performance standards, the bill requires deploying cost-effective renewable energy sources, solar thermal energy, or both to reach those standards.
- The commissioners of administration and commerce will review building designs and plans to ensure standards are met and report back with recommendations as needed.
- The section includes clear definitions for terms such as benchmark, energy, energy conservation, energy efficiency, renewable energy (including hydrogen from wind/solar/hydro), and solar thermal energy systems, to standardize terminology.
Sec. 2: Shared savings program for energy conservation
- Establishes a program where a public utility or energy services provider works with state agencies to improve energy efficiency in state-owned or state-leased buildings.
- Improvements must be designed so the cost payback is within ten years, and repayment is made only from the energy cost savings and only to the extent of those savings (interest-free).
- The goal is to show that energy use per square foot can exceed current energy code performance by at least 30%.
- Agencies must report monthly on energy use, building schedules, and related data to help manage the program.
Sec. 3: Energy and water data collection
- Agencies that control facilities must report material energy and water consumption and costs to the commissioner on a schedule the commissioner sets.
Sec. 4: Energy and water goals and conservation improvement plans
- Agencies must maintain energy and water benchmarks and goals developed with the commissioner.
- Agencies must keep a plan to implement energy and water conservation improvements in existing buildings with a simple payback of up to 15 years.
Sec. 5: Enterprise Sustainability Office
- Creates the Office of Enterprise Sustainability to help all state agencies reduce environmental impact, cut waste, and save public funds.
- Responsibilities include: managing a statewide sustainability metrics and reporting system, setting enterprise-wide goals, publishing a public dashboard that Minnesotans can use to track progress (updated annually), helping agencies develop and execute sustainability plans, and implementing a state building energy conservation improvement revolving loan program.
Sec. 6: Revisor instruction
- Directs a technical update to change the section heading to “ENERGY AND WATER USE.”
Significant Changes to Law
- Introduces a requirement to deploy renewable energy or solar thermal energy if cost-effective energy efficiency alone doesn’t meet the Sustainable Building 2030 standards.
- Establishes a comprehensive shared-savings model for energy improvements in state buildings, with repayment tied to actual savings and no interest.
- Mandates systematic energy and water data collection and public reporting to improve accountability and transparency.
- Creates an Office of Enterprise Sustainability to coordinate statewide sustainability goals, reporting, and financing tools (including a revolving loan program) for building improvements.
- Sets explicit benchmarks, payback periods, and performance targets (e.g., 30% beyond current energy code, up to 15-year paybacks for certain improvements).
How It Affects Government Operations
- State agencies must actively pursue energy and water efficiency, track usage, and report data.
- Building projects will consider renewable energy and solar thermal options to meet higher performance standards.
- A centralized office will coordinate sustainability efforts, public reporting, and financing for improvements, potentially accelerating modernization and cost savings.
Relevant Terms - Sustainable Building 2030 - energy performance standards - renewable energy - solar thermal energy - energy efficiency - energy conservation - energy conservation improvement - energy benchmarking - energy data collection - water data collection - water conservation - water efficiency - simple payback - revolving loan - energy cost savings - public dashboard - Office of Enterprise Sustainability - energy code (general reference to building energy codes)
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- State and Local Government on: March 03, 2026 12:30
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | Senate | Action | Introduction and first reading | ||
| February 26, 2026 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Adds requirement to deploy cost-effective renewable energy sources or solar thermal energy systems to meet Sustainable Building 2030 standards when energy efficiency is insufficient.",
"Incorporates cross-references to definitions of terms (benchmark, energy, energy conservation, energy efficiency, renewable energy, water conservation, water efficiency) drawn from sections 216C.331, 216B.2402, 216B.2422, and 216B.2411 to standardize terminology used in this section."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 16B.32 subdivision 1 to require deployment of cost-effective renewable energy sources or solar thermal energy systems if energy efficiency measures alone do not meet Sustainable Building 2030 energy performance standards under section 216B.241 subdivision 9.",
"modified": [
"Links to Sustainable Building 2030 standards and related definitions to shape how energy performance is measured in state building projects."
]
},
"citation": "16B.32",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Authorizes a shared-savings program involving energy conservation expenditures and contracts with public utilities or energy services providers.",
"Requires that energy efficiency improvements be included in the program with a cost payback within ten years and repayment from energy cost savings, interest-free.",
"Requires agencies to report monthly energy usage, building schedules, inventory of energy-using equipment, and other information to manage and evaluate the program."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 16B.32 subdivision 2 to establish a shared-savings program for energy conservation in state-owned and leased buildings.",
"modified": [
"Shifts toward performance-based energy savings with collaboration among agencies, the commissioner of administration, the commissioner of commerce, and utilities/energy services providers."
]
},
"citation": "16B.32",
"subdivision": "2"
},
{
"analysis": {
"added": [
"Requires agencies with custodial control for facilities to report material energy and water consumption and cost data to the commissioner."
],
"removed": [],
"summary": "Adds Minnesota Statutes 2024 section 16B.32 Subd.4 establishing energy and water data collection.",
"modified": [
"Creates a data collection mechanism to inform energy planning and conservation efforts."
]
},
"citation": "16B.32",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Establishes the Office of Enterprise Sustainability to assist all state agencies in improving sustainability of government operations, reduce waste, and spur innovation.",
"Outlines duties including managing a sustainability metrics and reporting system, setting enterprisewide goals, publishing a public dashboard, assisting agencies to plan and implement improvements, and implementing a state building energy conservation improvement revolving loan program."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 16B.372 Subdivision 1 to establish the Office of Enterprise Sustainability and outline its duties.",
"modified": [
"References existing statutes (16B.86 and 16B.87) to support the office's role and the revolving loan program."
]
},
"citation": "16B.372",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Revisor instruction to change Minnesota Statutes 2024 section 16.32 section headnote to ENERGY AND WATER USE.",
"modified": [
"Updates the section headnote to reflect a focus on energy and water use."
]
},
"citation": "16.32",
"subdivision": ""
},
{
"analysis": {
"added": [
"Recognizes 216B.241 Subd.9 as the standards governing Sustainable Building 2030 energy performance."
],
"removed": [],
"summary": "Cited as the source of Sustainable Building 2030 energy performance standards referenced in 16B.32 Subd.1.",
"modified": [
"Provides the benchmark for when renewable energy or solar thermal energy must be deployed to meet standards."
]
},
"citation": "216B.241",
"subdivision": "9"
},
{
"analysis": {
"added": [
"Adopts cross-references to 216C.331 Subd.1 to standardize terms across energy-related provisions."
],
"removed": [],
"summary": "Uses definitions from 216C.331 Subd.1 to define terms such as benchmark, energy, energy conservation, energy efficiency, renewable energy, and water conservation used in this act.",
"modified": [
"Links terminology in this act to 216C.331 definitions to ensure consistency."
]
},
"citation": "216C.331",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Referencing the definition of energy conservation from 216B.2402 Subd.5."
],
"removed": [],
"summary": "Uses definitions for energy-related terms from 216B.2402 Subd.5 as the basis for terms used in this act.",
"modified": [
"Aligns interpretation of energy terms with 216B.2402 across the act."
]
},
"citation": "216B.2402",
"subdivision": "5"
},
{
"analysis": {
"added": [
"Referencing the definition of energy conservation improvement from 216B.2402 Subd.6."
],
"removed": [],
"summary": "Uses definitions for energy conservation improvement from 216B.2402 Subd.6.",
"modified": [
"Ensures cross-referencing of energy conservation improvement terminology."
]
},
"citation": "216B.2402",
"subdivision": "6"
},
{
"analysis": {
"added": [
"Referencing the definition of energy efficiency from 216B.2402 Subd.7."
],
"removed": [],
"summary": "Uses definitions for energy efficiency from 216B.2402 Subd.7.",
"modified": [
"Ensures cross-referencing of energy efficiency terminology."
]
},
"citation": "216B.2402",
"subdivision": "7"
},
{
"analysis": {
"added": [
"Defines renewable energy to include hydrogen produced from wind, solar or hydroelectric sources."
],
"removed": [],
"summary": "Defines renewable energy in a way that includes hydrogen generated from wind, solar, or hydroelectric, and includes solar thermal energy systems as used for a qualifying solar thermal project in 216B.2411 Subd.2 Paragraph e.",
"modified": [
"Includes solar thermal energy systems and references 216B.2411 Subd.2 Paragraph e for qualifying solar thermal projects."
]
},
"citation": "216B.2422",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Provides the definition for qualifying solar thermal projects used in relation to renewable energy and solar energy provisions."
],
"removed": [],
"summary": "Defines the 'qualifying solar thermal project' referenced for solar thermal energy within this act (Paragraph e).",
"modified": [
"Supports the interpretation of solar thermal energy within the renewable energy framework."
]
},
"citation": "216B.2411",
"subdivision": "2"
}
]Progress through the legislative process
In Committee