SF3858

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)