At the Friday, Nov. 14, meeting, the Minnesota Construction Codes Advisory Council (CCAC) approved the draft Minnesota Residential Energy Code without four amendments that would have dramatically increased new construction costs in Minnesota.

These amendments would have eliminated the Simulated Building Performance pathway and increased the efficiency requirements to the point that the remaining performance path, the ERI, would have been unworkable in Minnesota. As proposed by the Technical Advisory Group (TAG), the residential energy code would have raised construction costs by more than $13,000 on a two-story home.

The decision follows an October meeting between Housing First Minnesota staff, Commissioner Nicole Blissenbach, and department leaders, where the industry outlined how the proposals would reduce affordability and worsen the state’s housing shortage. Minnesota remains 98,000 homes short of a balanced market, and new-home prices continue to outpace incomes.

Industry Responds to Call for Action

Eric Boyd, division president of member-firm Arcxis, served as Housing First’s representative on the review panel, and association staff were present at the hearings, weighing in to promote homeownership at every opportunity. Several members also attended critical hearings over the past two years to ensure that, as the implementers of the code, their voices and the voices of their prospective buyers were part of the discussion.

As the CCAC meeting neared, Housing First Minnesota gathered a group of stakeholders who were equally concerned over the massive cost increase and negative impact on homeownership opportunities that the TAG had recommended.

Coalition partners commenting included: Central Minnesota Builders Association, Rochester Area Builders,Window and Door Manufacturers Association, HBA of the Red River Valley, and Minnesota Association of Realtors.

Our engagement was able to get the Simulated Building Performance pathway restored, ensuring affordable alternative option in Minnesota’s next code. The committee also decreased the tradeoff requirements that energy efficiency groups proposed which would have eliminated any viable performance path options.

Mitchell Provision Considerations

While the cost increase was averted, clouds remain on the horizon. The Mitchell Provision, enacted in 2024, requires Minnesota to adopt each new IECC model code starting in 2026 and achieve a 70% reduction in residential net energy use by 2038. Industry representatives emphasized that while the law sets long-term targets, each amendment must still meet Minnesota’s statutory requirements for need, reasonableness, and substantial evidence—standards that several of the proposed amendments do not meet.

“CCAC’s actions, while commendable on the Energy Code, have only delayed the coming cost increases,” said Nick Erickson, senior director of housing policy for Housing First Minnesota. “With the Mitchell Provision still in place, we can expect significant cost increases, like the ones proposed by the TAG, every three years through 2036.”

EV-Capable Garage Proposal

The Council also received a late-stage proposal requiring new homes to be built with EV-capable garages. Similar proposals were rejected twice earlier in the process. Builders report that EV-charging infrastructure is selected by only 0.5% of buyers seeking the median-priced new home in Minnesota, making the mandate an added upfront cost for features many homeowners decline.

The proposal failed by a vote of 2-16, with two abstentions.

Housing First Minnesota staff addressed CCAC during the public hearing portion of the meeting.  Housing First Minnesota’s TAG representative, Curtis Johnson of Pulte Homes, submitted a letter to the Committee as well.

Next Steps

The Department of Labor and Industry will now prepare a final recommendation for the Commissioner, who will determine which amendments move into formal rulemaking. Part of this process is a statutorily required durability analysis.

Members with questions on this topic should contact Nick Erickson, Housing First Minnesota senior director of housing policy, or Steve Gottwalt, CMBA government affairs consultant.