As Minnesota weighs updates to its Energy Conservation and Optimization (ECO) Program, Housing First Minnesota has asked policymakers to ensure that energy efficiency policy continues to support—not hinder—affordable, practical, and consumer-friendly homebuilding.
In a formal public comment submitted to the Minnesota Department of Commerce earlier this month, Mark Foster, vice president of legislative & political affairs for Housing First Minnesota, outlined key concerns with the proposed ECO Program revisions. The central message? Minnesota’s progress in energy efficiency should not come at the expense of affordability, consumer choice, or construction feasibility.
Energy Efficiency Without Compromise
Minnesota has earned a top national ranking in energy efficiency for new residential construction, thanks largely to the innovation and leadership of local builders—not mandates. Foster emphasized that this achievement was built on flexibility and voluntary adoption, with programs like ECO offering effective, performance-based incentives.
But proposed changes could shift the balance, narrowing eligible conservation measures and emphasizing electrification. Housing First Minnesota warns this could undermine progress by making homes more expensive and difficult to build—especially for first-time and workforce buyers.
A Stand for Consumer Choice
Additionally, the comments emphasized the need for energy system choice. For many homeowners, natural gas remains a reliable, cost-effective option—particularly in Minnesota’s frigid climate.
Housing First Minnesota opposes any policy direction that would marginalize natural gas or mandate full electrification, noting that such moves risk increasing costs and limiting options for families and builders alike. The comments stressed that energy policy should be inclusive, not prescriptive.
Construction Impacts: More Than Just Policy
The public comment also sheds light on how policy changes ripple through the construction process. A stronger push toward electrification, without corresponding infrastructure and labor readiness, could delay projects and increase costs due to:
- Design constraints in areas lacking upgraded electric infrastructure
- Higher upfront expenses from new system requirements
- Delays in permitting and inspections due to mismatched expectations
- Strain on supply chains for electric HVAC and water heating systems
These complications are particularly acute in affordable housing developments, where tight budgets and narrow margins leave little room for added complexity.
Recommendations for a Balanced Path Forward
To preserve energy progress while keeping homes affordable and buildable, Housing First Minnesota offers six policy recommendations:
- Maintain flexibility in achieving energy savings through multiple technologies.
- Preserve consumer choice in selecting energy systems.
- Avoid unintended burdens on the construction process.
- Keep natural gas eligible for conservation incentives.
- Align with Minnesota’s fuel-neutral energy code, avoiding policies that create de facto mandates.
- Promote cost-effective, fuel-neutral, performance-based strategies for all housing markets.
Conclusion: Efficiency Through Collaboration, Not Mandates
Housing First Minnesota’s public comment underscores a fundamental belief: Minnesota’s leadership in energy efficiency didn’t come from top-down rules—it came from collaboration between policymakers and the private sector. As the ECO Program evolves, we will call for continued focus on real-world feasibility, affordability, and consumer-driven innovation.
Our message to policymakers is clear: Let’s keep Minnesota at the forefront of efficiency—without compromising the homes and communities we’re building.
