1.1    .................... moves to amend H. F. No. 3401 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 16B.325, is amended to read:
1.5    Subdivision 1. Development of sustainable building guidelines. The Department
1.6of Administration and the Department of Commerce, with the assistance of other agencies,
1.7shall develop sustainable building design guidelines for all new state buildings by January
1.815, 2003, and for all major renovations of state buildings by February 1, 2009. The
1.9primary objectives of these guidelines are to ensure that all new state buildings, and
1.10major renovations of state buildings, initially exceed existing the state energy code, as
1.11established in Minnesota Rules, chapter 7676, by at least 30 percent.
1.12    Subd. 2. Lowest possible cost; energy conservation. The guidelines must focus
1.13on achieving the lowest possible lifetime cost for new buildings and major renovations,
1.14and allow for changes in the guidelines that encourage continual energy conservation
1.15improvements in new buildings. and major renovations. The guidelines must define
1.16"major renovations" for purposes of this section. The definition may not allow "major
1.17renovations" to encompass less than 10,000 square feet or to encompass less than the
1.18complete replacement of the mechanical, ventilation, or cooling system of the building or
1.19a section of the building. The design guidelines must establish sustainability guidelines
1.20that include air quality and lighting standards and that create and maintain a healthy
1.21environment and facilitate productivity improvements; specify ways to reduce material
1.22costs; and must consider the long-term operating costs of the building, including the use of
1.23renewable energy sources and distributed electric energy generation that uses a renewable
1.24source or natural gas or a fuel that is as clean or cleaner than natural gas.
1.25    Subd. 3. Development of guidelines; applicability. In developing the guidelines,
1.26the departments shall use an open process, including providing the opportunity for public
2.1comment. The guidelines established under this section are mandatory for all new
2.2buildings receiving funding from the bond proceeds fund after January 1, 2004, and for all
2.3major renovations receiving funding from the bond proceeds fund after February 1, 2009.
2.4    Subd. 4. Revisions. The commissioners of administration and commerce shall
2.5review the guidelines periodically and as soon as practicable revise the guidelines based
2.6upon performance standards developed under section 216B.241, subdivision 9.

2.7    Sec. 2. Minnesota Statutes 2007 Supplement, section 216B.241, subdivision 1e,
2.8is amended to read:
2.9    Subd. 1e. Applied research and development grants. (a) The commissioner
2.10may, by order, approve and make grants for applied research and development projects
2.11of general applicability that identify new technologies or strategies to maximize energy
2.12savings, improve the effectiveness of energy conservation programs, or document
2.13the carbon dioxide reductions from energy conservation programs. When approving
2.14projects, the commissioner shall consider proposals and comments from utilities and
2.15other interested parties. The commissioner may assess up to $3,600,000 annually for the
2.16purposes of this subdivision. The assessments must be deposited in the state treasury
2.17and credited to the energy and conservation account created under subdivision 2a. An
2.18assessment made under this subdivision is not subject to the cap on assessments provided
2.19by section 216B.62, or any other law.
2.20    (b) The commissioner, as part of the assessment authorized under paragraph (a),
2.21shall annually assess and grant up to $500,000 for the purpose of subdivision 9.

2.22    Sec. 3. Minnesota Statutes 2007 Supplement, section 216B.241, is amended by adding
2.23a subdivision to read:
2.24    Subd. 9. Building performance standards; Sustainable Building 2030. (a) The
2.25purpose of this subdivision is to establish cost-effective energy-efficiency performance
2.26standards for new and substantially reconstructed commercial-industrial and institutional
2.27buildings that can substantially reduce carbon emissions from fossil-fuel energy and
2.28reduce overall energy demand in new and substantially reconstructed buildings. For the
2.29purposes of this subdivision, the establishment of these standards may be referred to as
2.30Sustainable Building 2030.
2.31    (b) The commissioner shall contract with the Center for Sustainable Building
2.32Research at the University of Minnesota to coordinate development and implementation
2.33of energy-efficiency performance standards, strategic planning, research, data analysis,
2.34technology transfer, training, and other activities related to the purpose of Sustainable
2.35Building 2030. The commissioner and the Center for Sustainable Building Research shall,
3.1in consultation with utilities and experts in building design and technology, develop a
3.2Sustainable Building 2030 implementation plan.
3.3    (c) Sustainable Building 2030 energy-efficiency performance standards must be
3.4firm, quantitative measures of total building energy use and associated greenhouse
3.5gas emissions per square foot for different building types and uses, that allow for
3.6accurate determinations of a building's conformance with a performance standard. The
3.7energy-efficiency performance standards shall be updated every three or five years to
3.8incorporate all cost-effective measures. The performance standards must recognize the
3.9reductions in carbon intensity due to compliance with the renewable energy standards in
3.10section 216B.1691. The performance standards should be designed to achieve reductions
3.11to meet the following reduction schedule: (1) 60 percent in 2010; (2) 70 percent in
3.122015; (3) 80 percent in 2020; and (4) 90 percent in 2025. A performance standard must
3.13not be established or increased absent a conclusive engineering analysis that the higher
3.14performance standard would result in cost-effective improvements in building design and
3.15construction. The determination of cost-effectiveness must be based upon established
3.16practices used in evaluating utility conservation improvement programs.
3.17    (d) The annual amount of the contract with the Center for Sustainable Building
3.18Research is up to $500,000. The Center for Sustainable Building Research shall expend
3.19no more than $150,000 of this amount each year on administration, coordination, and
3.20oversight activities related to Sustainable Building 2030. The balance of contract funds
3.21must be spent for subcontracts with not-for-profit energy organizations, architecture and
3.22engineering firms, and other qualified entities to undertake technical projects and activities
3.23in support of Sustainable Building 2030. The primary work to be accomplished each
3.24year by qualified technical experts under subcontracts is the development and thorough
3.25justification of recommendations for specific energy-efficiency performance standards.
3.26Additional work may include:
3.27    (1) research, development, and demonstration of new energy-efficiency technologies
3.28and techniques suitable for commercial, industrial, and institutional buildings;
3.29    (2) analysis and evaluation of practices in building design, construction,
3.30commissioning and operations, and analysis and evaluation of energy use in the
3.31commercial, industrial, and institutional sectors;
3.32    (3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable
3.33Building 2030 performance standards, conservation improvement programs, and building
3.34energy codes;
4.1    (4) development and delivery of training programs for architects, engineers,
4.2commissioning agents, technicians, contractors, equipment suppliers, developers, and
4.3others in the building industries; and
4.4    (5) analyze and evaluate the effect of building operations on energy use.
4.5    (e) The commissioner shall require utilities to develop and implement conservation
4.6improvement programs that are expressly designed to achieve energy efficiency goals
4.7consistent with the Sustainable Building 2030 policy goal through implementation of the
4.8performance standards. These programs must include offerings of design assistance and
4.9modeling, financial incentives, and the verification of energy efficient design components
4.10of new and substantially reconstructed buildings. Utilities providing conservation
4.11improvement programs that lead to meeting the 2030 standards may claim the energy
4.12savings as part of their goals for the conservation improvement program.
4.13    (f) The commissioner shall report to the legislature every three years on the
4.14cost-effectiveness and progress of implementing the 2030 standards and shall make
4.15recommendations on the need to continue the program as described in this section.

4.16    Sec. 4. EFFECTIVE DATE.
4.17    Sections 1 to 3 are effective the day following final enactment."
4.18Delete the title and insert:
4.19"A bill for an act
4.20relating to energy; providing for development and application of building energy
4.21usage performance standards;amending Minnesota Statutes 2006, section
4.2216B.325; Minnesota Statutes 2007 Supplement, section 216B.241, subdivision
4.231e, by adding a subdivision."