City Council Meeting Date: February 17, 2026
To: Mayor and City Council
From: Sara Pabich, Sustainability Coordinator
Title
Sustainable Building Policy
Body
Action Requested:
N/A
Summary Report:
The City’s Sustainable Building Policy is currently not achievable for current development projects due to external constraints on renewable energy interconnections and policy requirements that depend on on-site renewables. As a result, projects receiving City financial assistance cannot comply with the policy as written.
Background: The Sustainable Building Policy supports Northfield’s Climate Action Plan and goal of becoming a carbon-free community by 2040. Since buildings account for the most local greenhouse gas emissions, the policy is intended to reduce energy use and environmental impacts in new construction and major renovations. The policy applies to projects receiving City financial assistance, including tax increment financing, grants, loans, or land write-downs. One of the core elements are the “Northfield Green Requirements,” which include:
1. Calculate greenhouse gas emissions
2. Energy efficiency standards
3. Renewable energy standards
These requirements cannot be modified administratively and require Council approval to change.
Key Reasons the Policy Is Not Currently Achievable
1. Renewable Energy Standard: The policy requires evaluation and installation of on-site renewable energy when cost-effective. However, Xcel Energy’s interconnection queue for solar and microgrids is currently three to five years long, with no guarantee of approval due to grid congestion. This makes on-site solar infeasible for current projects and requires studies for systems that may never be built. Geothermal is technically allowed but is complex, costly, and must be incorporated very early in design, making it impractical for projects already underway.
2. Energy Efficiency Standard: The current developments fall under Sustainable Buildings 2030, which requires a 90% reduction in energy use and emissions compared to 2003 levels. This cannot be achieved without on-site renewables or large purchases of renewable energy credits. With installations blocked, developers would be forced to rely on credits, which are costly and do not meaningfully reduce emissions within Northfield.
3. Calculate Greenhouse Gas Emissions: While emissions must be calculated, no reduction from a baseline is required, so this component does not advance the City’s goals to reduce greenhouse gas emissions.
Conclusion: Due to these combined factors, no current development project receiving City financial assistance can fully comply with the Sustainable Building Policy as written. Staff are working on potential solutions and will return to Council with recommendations.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
February 18, 2026 Environmental Quality Commission to receive presentation
March 2026 City Council to receive proposed amendment to Sustainable Building Policy