[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Rules and Regulations]
[Pages 2857-2868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00025]


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DEPARTMENT OF ENERGY

10 CFR Part 435

[Docket No. EERE-2016-BT-STD-0003]
RIN 1904-AD56


Energy Efficiency Standards for the Design and Construction of 
New Federal Low-Rise Residential Buildings' Baseline Standards Update

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Final rule.

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SUMMARY: The U.S. Department of Energy (DOE) is publishing this final 
rule to implement provisions in the Energy Conservation and Production 
Act (ECPA) that require DOE to update the baseline Federal energy 
efficiency performance standards for the construction of new Federal 
low-rise residential buildings. This rule updates the baseline Federal 
residential standard to the International Code Council (ICC) 2015 
International Energy Conservation Code (IECC).

DATES: This rule is effective March 13, 2017.
    The incorporation by reference of a certain publication listed in 
this rule was approved by the Director of the Federal Register as of 
March 13, 2017.
    All Federal agencies shall design new Federal buildings that are 
low-rise residential buildings, for which design for construction began 
on or after January 10, 2018, using the 2015 IECC as the baseline 
standard for 10 CFR part 435.

ADDRESSES: The docket, which includes Federal Register notices, public 
meeting attendee lists and transcripts, comments, and other supporting 
documents/materials, is available for review at https://www.regulations.gov/docketBrowser?rpp=25&po=0&D=EERE-2016-BT-STD-0003]. 
All documents in the docket are listed in the regulations.gov index. 
However, some documents listed in the index, such as those containing 
information that is exempt from public disclosure, may not be publicly 
available. The regulations.gov site contains simple instructions on how 
to access all documents, including public comments, in the docket.

[[Page 2858]]

    A link to the docket Web page can be found at http://www.regulations.gov/#!docketDetail;D=EERE-2016-BT-STD-0003. This Web 
page will contain a link to the docket for this rule on the 
www.regulations.gov site. The www.regulations.gov Web page will contain 
simple instructions on how to access all documents, including public 
comments, in the docket.
    For further information on how to review the docket, contact Mr. 
Nicolas Baker at (202) 586-8215 or by email: [email protected].

FOR FURTHER INFORMATION CONTACT:

Nicolas Baker, U.S. Department of Energy, Office of Energy Efficiency 
and Renewable Energy, Federal Energy Management Program, Mailstop EE-
5F, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586-8215, 
email: [email protected].
Kavita Vaidyanathan, U.S. Department of Energy, Office of the General 
Counsel, Forrestal Building, GC-33, 1000 Independence Avenue SW., 
Washington, DC 20585, (202) 586-0669, email: 
[email protected].

SUPPLEMENTARY INFORMATION: This final rule incorporates by reference 
the following standard into 10 CFR part 435: ICC International Energy 
Conservation Code (IECC), 2015 Edition (``IECC 2015''), May 30, 2014.
    Copies of this standard are available from the International Code 
Council, 4051 West Flossmoor Road, Country Club Hills, IL 60478, 1-800-
422-7233, http://www.iccsafe.org/.
    Also, a copy of this standard is available for inspection at U.S. 
Department of Energy (DOE), Office of Energy Efficiency and Renewable 
Energy, Federal Energy Management Program, 8th Floor, 956 L'Enfant 
Plaza SW., Suite 8000, Washington, DC 20024. For information on the 
availability of this standard at DOE, contact Mr. Cyrus Nasseri at 
(202) 586-9138, or email [email protected].
    This standard is discussed in greater detail in section VI.N of 
this document.

Table of Contents

I. Executive Summary of the Final Rule
II. Introduction
III. Synopsis of the Final Rule
    A. Updated Definition of New Federal Building
    B. Adding Explicit Mention of Mechanical Ventilation 
Requirements in the 2015 IECC
    C. Expanding the List of Energy End-Uses that must be included 
in the 30 Percent Savings Calculation
    D. Other Energy Efficiency Requirements
    E. Synopsis of Changes to the IECC Between the 2009 and 2015 
Versions
IV. Compliance Date
V. Reference Resources
    A. Resources for Low-Rise Residential Buildings.
VI. Regulatory Analysis
    A. Review Under Executive Order 12866, ``Regulatory Planning and 
Review''
    B. Administrative Procedure Act
    C. Review Under the Regulatory Flexibility Act
    D. Review Under the Paperwork Reduction Act of 1995
    E. Review Under the National Environmental Policy Act of 1969
    F. Review Under Executive Order 13132, ``Federalism''
    G. Review Under Executive Order 12988, ``Civil Justice Reform''
    H. Review Under the Unfunded Mandates Reform Act of 1995
    I. Review Under the Treasury and General Government 
Appropriations Act of 1999
    J. Review Under Executive Order 12630, ``Governmental Actions 
and Interference With Constitutionally Protected Property Rights''
    K. Review Under the Treasury and General Government 
Appropriations Act, 2001
    L. Review Under Executive Order 13211, ``Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, 
or Use''
    M. Review Under Section 32 of the Federal Energy Administration 
Act of 1974
    N. Description of Materials Incorporated by Reference
VII. Congressional Notification
VIII. Approval of the Office of the Secretary

I. Executive Summary of the Final Rule

    Section 305 of the Energy Conservation and Production Act (ECPA), 
as amended, requires DOE to determine whether the energy efficiency 
standards for new Federal buildings should be updated to reflect 
revisions to the IECC based on the cost-effectiveness of the revisions. 
(42 U.S.C. 6834(a)(3)(B)) Accordingly, DOE conducted a cost-
effectiveness analysis that found the 2015 IECC to be cost-effective. 
DOE's assumptions and methodology for the cost-effectiveness of this 
rule are based on DOE's cost-effectiveness analysis of 2015 IECC, as 
well as DOE's Environmental Assessment (EA) for this rulemaking.\1\ 
Therefore, in this final rule, DOE updates the energy efficiency 
standards for new Federal buildings to the 2015 IECC for buildings for 
which design for construction began on or after one year after the rule 
is published in the Federal Register. (42 U.S.C. 6834(a)(3)(A)). 
Federal buildings are defined as follows: ``any building to be 
constructed by, or for the use of, any Federal agency. Such term shall 
include buildings built for the purpose of being leased by a Federal 
agency, and privatized military housing.'' (42 U.S.C. 6832(6)). This 
term does not include renovations or modifications to existing 
buildings.
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    \1\ The Environmental Assessment (EA) (DOE/EA-2020) is entitled, 
``Environmental Assessment for Final Rule, 10 CFR part 435, `Energy 
Efficiency Standards for New Federal Low-Rise Residential 
Buildings,' Baseline Standards Update''. The EA may be found in the 
docket for this rulemaking and at https://energy.gov/sites/prod/files/2016/12/f34/EA-2020-FEA-2016.pdf.
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II. Introduction

    ECPA, as amended, requires DOE to establish building energy 
efficiency standards for all new Federal buildings. (42 U.S.C. 
6834(a)(1)) The standards established under section 305(a)(1) of ECPA 
must contain energy efficiency measures that are technologically 
feasible, economically justified, and meet the energy efficiency levels 
in the applicable voluntary consensus energy codes specified in section 
305. (42 U.S.C. 6834(a)(1)-(3))
    Under section 305 of ECPA, the referenced voluntary consensus code 
for low-rise residential buildings is the International Code Council 
(ICC) International Energy Conservation Code (IECC). (42 U.S.C. 
6834(a)(2)(A)). DOE codified this referenced code as the baseline 
Federal building standard in its existing energy efficiency standards 
found in 10 CFR part 435. Also pursuant to section 305 of ECPA, DOE 
must establish, by rule, revised Federal building energy efficiency 
performance standards for new Federal buildings that require such 
buildings to be designed to achieve energy consumption levels that are 
at least 30 percent below the levels established in the referenced code 
(baseline Federal building standard), if life-cycle cost-effective. (42 
U.S.C. 6834(a)(3)(A)(i)(I))
    Under section 305 of ECPA, not later than one year after the date 
of approval of each subsequent revision of the ASHRAE Standard or the 
IECC, DOE must determine whether to amend the baseline Federal building 
standards with the revised voluntary standard based on the cost-
effectiveness of the revised voluntary standard. (42 U.S.C. 
6834(a)(3)(B)) It is this requirement that this rulemaking addresses. 
ICC has updated the IECC from the version currently referenced in DOE's 
regulations at 10 CFR part 435. In this rule, DOE revises the latest 
baseline Federal building standard for 10 CFR part 435 from the 2009 
IECC to the 2015 IECC. DOE notes that although ICC published an update 
to the IECC in 2012, this rule updates 10 CFR part 435 to the 2015 IECC 
directly, without requiring agencies to comply with the 2012 IECC. DOE 
notes however that because development of the IECC is incremental from 
version to version, the 2015 IECC does include all content in

[[Page 2859]]

the 2012 IECC that was not specifically removed or modified during the 
development of the 2015 IECC. DOE evaluated the 2012 IECC as well and 
found it to be technologically feasible and economically justified.\2\
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    \2\ See DOE's determination for the 2012 IECC at http://www.gpo.gov/fdsys/pkg/FR-2012-05-17/pdf/2012-12000.pdf. See DOE's 
analysis of the cost-effectiveness of the 2012 IECC at https://www.energycodes.gov/sites/default/files/documents/NationalResidentialCostEffectiveness.pdf. See DOE's analysis of the 
cost savings of the 2009 IECC and 2012 IECC at https://www.energycodes.gov/sites/default/files/documents/NationalResidentialEnergyAnalysis.pdf.
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    Section 306(a) of ECPA provides that each Federal agency and the 
Architect of the Capitol must adopt procedures to ensure that new 
Federal buildings will meet or exceed the Federal building energy 
efficiency standards established under section 305. (42 U.S.C. 6835(a)) 
ECPA Section 306(b) bars the head of a Federal agency from expending 
Federal funds for the construction of a new Federal building unless the 
building meets or exceeds the applicable baseline Federal building 
energy standards established under section 305. (42 U.S.C. 6835(b)) 
Specifically, all new Federal buildings \3\ must be designed to achieve 
the baseline standards in the International Energy Conservation Code 
for low-rise residential buildings (and ASHRAE Standard 90.1 for 
commercial and multi-family high-rise residential buildings) and 
achieve energy consumption levels at least 30 percent below these 
minimum baseline standards, where life-cycle cost-effective. (42 U.S.C. 
6834(a)(3)(A)). This requirement does not extend to renovations or 
modifications to existing buildings.
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    \3\ 42 U.S.C. 6832 defines ``Federal buildings'' as any building 
to be constructed by, or for the use of, any Federal agency. Such 
term shall include buildings built for the purpose of being leased 
by a Federal agency, and privatized military housing. DOE's 
codifications of this definition in 10 CFR 435 and 10 CFR 433 
include a second sentence defining ``new buildings'', resulting in 
the definition of ``new Federal buildings'' as ``New Federal 
building means any building to be constructed by, or for the use of, 
any Federal agency which is not legally subject to State or local 
building codes or similar requirements. A new building is a building 
constructed on a site that previously did not have a building or a 
complete replacement of an existing building from the foundation 
up.''
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III. Synopsis of the Final Rule

    DOE is issuing this action as a final rule. As indicated in this 
preamble, DOE must determine whether the energy efficiency standards 
for new Federal buildings should be updated to reflect revisions to the 
2015 IECC based on the cost-effectiveness of the revisions. (42 U.S.C. 
6834(a)(3)(B)) In this final rule, DOE determines that the energy 
efficiency standards for new Federal buildings should be updated to 
reflect the 2015 revisions to the IECC based on the cost-effectiveness 
of the revisions.
    DOE reviewed the IECC for DOE's state building codes program and 
determined that the 2015 version of the IECC would achieve greater 
energy efficiency than the prior version (the 2012 version). (See 80 FR 
33250 (June 11, 2015)) DOE also reviewed the 2012 version of the IECC 
and determined that the 2012 version would achieve greater energy 
efficiency than the prior version (the 2009 version currently 
referenced in 10 CFR part 435). (See 77 FR 29322 (May 17, 2012)) Both 
these determinations were subject to notice and comment. See 79 FR 
57915 (September 26, 2014) and 76 FR 42688 (July 19, 2011) respectively 
for the 2015 IECC and 2012 preliminary determinations. DOE found that 
the 2015 version of the IECC would save 0.87% more source energy than 
the 2012 version of the IECC \4\ and that the 2012 version of the IECC 
would save 24% more source energy than the 2009 version of the IECC.\5\
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    \4\ Determination Regarding Energy Efficiency Improvements in 
the 2015 International Energy Conservation Code (IECC); Notice of 
determination, 80 FR 33250 (June 11, 2015)
    \5\ Energy savings of the 2012 IECC over the 2009 IECC are shown 
in Table 1 of Energy Use Savings for a Typical New Residential 
Dwelling Unit Based on the 2009 and 2012 IECC as Compared to the 
2006 IECC--Letter Report (PNNL-88603) (available at https://www.energycodes.gov/sites/default/files/documents/NationalResidentialEnergyAnalysis.pdf, rather than the actual 
published determination.
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    In DOE's determination for the state building codes program, and 
again in this rule, DOE states that the cost-effectiveness of revisions 
to the voluntary codes is considered through DOE's statutorily directed 
involvement in the codes process. See 80 FR 33250. Section 307 of ECPA 
requires DOE to participate in the ICC code development process and to 
assist in determining the cost-effectiveness of the voluntary 
standards. (42 U.S.C. 6836) DOE is required to periodically review the 
economic basis of the voluntary building energy codes and participate 
in the industry process for review and modification, including seeking 
adoption of all technologically feasible and economically justified 
energy efficiency measures. (42 U.S.C. 6836(b))
    In addition to DOE's consideration of the cost-effectiveness of the 
2015 IECC through its participation in the codes development process, 
DOE conducted an independent analysis of the cost-effectiveness of the 
2015 IECC compared to the 2012 IECC and 2009 IECC. The results of the 
analysis are discussed in section A. Review Under Executive Order 
12866, ``Regulatory Planning and Review''.\6\ DOE's assumptions and 
methodology for the cost-effectiveness of this rule are based on DOE's 
cost-effectiveness analysis of the 2015 IECC, as well as DOE's 
Environmental Assessment (EA) for this rulemaking.\7\
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    \6\ National Cost-Effectiveness of the Residential Provisions of 
the 2015 IECC, Mendon, V.V. et al. PNNL-24240, Pacific Northwest 
National Laboratory, June 2015. https://www.energycodes.gov/sites/default/files/documents/2015IECC_CE_Residential.pdf.
    \7\ The Environmental Assessment (EA) (DOE/EA-2020) is entitled, 
``Environmental Assessment for Final Rule, 10 CFR part 435, `Energy 
Efficiency Standards for New Federal Low-Rise Residential 
Buildings,' Baseline Standards Update''. The EA may be found in the 
docket for this rulemaking and at https://energy.gov/sites/prod/files/2016/12/f34/EA-2020-FEA-2016.pdf.
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    In this rule, DOE updates the energy efficiency standards 
applicable to new Federal buildings based on the determinations made by 
DOE as to the energy efficiency improvements of the 2015 IECC \8\ and 
2012 IECC,\9\ as compared to the predecessor version (the 2009 IECC), 
and based on the considerations of cost-effectiveness incorporated into 
the codes processes, DOE's involvement in those processes, and DOE's 
own cost-effectiveness analysis. This final rule amends 10 CFR part 435 
to update the referenced baseline Federal energy efficiency performance 
standards. This final rule does not make any changes to the overall 
requirement that agencies must design buildings to meet the baseline 
standard and, if life-cycle cost-effective, achieve savings of at least 
30% below the baseline standard. The statutory requirement to achieve 
savings of at least 30% below the levels established for the 2012 and 
2015 IECC updates, applies to Federal agencies in the determinations 
they make for individual buildings, but not to DOE's overall 
determination for the purpose of this rule.
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    \8\ Determination Regarding Energy Efficiency Improvements in 
the 2015 International Energy Conservation Code (IECC); Notice of 
determination. 80 FR 33250 (June 11, 2015).
    \9\ Updating State Residential Building Energy Efficiency Codes, 
77 FR 29322 (May 17, 2012).
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    Three changes made to 10 CFR part 435 in this rule warrant further 
discussion. These changes are: (1) Updated the definition of ``Federal 
buildings'' to meet the requirements of 42 U.S.C. 6832(6); (2) explicit 
reference to the new mechanical ventilation requirements found in the 
2015 IECC to Sec.  435.4; and (3) expanded list of energy end-uses that 
must be considered in the 30 percent savings calculation. Each of these 
changes is discussed in this preamble. DOE is also providing a synopsis 
of the major changes made to

[[Page 2860]]

the IECC between the 2009 IECC and the 2015 IECC to provide more detail 
regarding what the change in baseline standard means.

A. Updated Definition of New Federal Building

    The definition of ``New Federal building'' in 10 CFR part 435 has 
not previously been updated to match what is found in 42 U.S.C. 
6832(6). The Energy Independence and Security Act of 2007 (EISA 2007) 
updated the definition of ``Federal building'' to include privatized 
military family housing and leased buildings. This rule makes that 
update by revising the definition of ``New Federal building'' to mean 
``any new building (including a complete replacement of an existing 
building from the foundation up) to be constructed by, or for the use 
of, any federal agency.\10\ Such term shall include buildings built for 
the purpose of being leased by a federal agency, and privatized 
military housing.'' DOE believes that the main impact of this 
definition change for this rule will be that privatized military 
housing will now be required to follow the requirements of 10 CFR part 
435 for energy efficiency instead of using prevailing energy efficiency 
standards. For example, privatized military family housing constructed 
in the state of Georgia must meet the requirements of 10 CFR part 435, 
which may or may not be the same as the Georgia energy code. This 
change is made solely to bring 10 CFR part 435 into agreement with 42 
U.S.C. 6832(6).
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    \10\ 42 U.S.C. 6832 defines ``Federal agency'' as ``any 
department, agency, corporation, or other entity or instrumentality 
of the executive branch of the Federal Government, including the 
United States Postal Service, the Federal National Mortgage 
Association, and the Federal Home Loan Mortgage Corporation.''
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B. Adding Explicit Mention of Mechanical Ventilation Requirements in 
the 2015 IECC

    The 2015 IECC includes explicit mechanical ventilation requirements 
for new homes. Previous editions of the IECC (prior to the 2012 IECC, 
but including the 2009 IECC) referred to in 10 CFR part 435 did not 
explicitly require mechanical ventilation. DOE believes that ensuring 
adequate ventilation is critical to ensuring good indoor air quality 
and has therefore explicitly added a mention of this requirement in 10 
CFR part 435. DOE believes the main impact of this change will be to 
require agencies to use the newest residential ventilation standards. 
The 2015 IECC explicitly mentions the 2015 International Mechanical 
Code (IMC) \11\ and the 2015 International Residential Code (IRC) \12\ 
as optional sources of ventilation requirements. The 2015 IECC also 
allows ``other approved means'' of mechanical ventilation.
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    \11\ The 2015 IMC is available for read-only viewing at http://codes.iccsafe.org/app/book/toc/2015/I-Codes/2015%20IMC%20HTML/index.html.
    \12\ The 2015 IRC is available for read-only viewing at http://codes.iccsafe.org/app/book/toc/2015/I-Codes/2015%20IRC%20HTML/index.html.
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    Specifically, Section R403.5 of the 2015 IECC requires that ``the 
building shall be provided with ventilation that meets the requirements 
of the International Residential Code or International Mechanical Code, 
as applicable, or with other approved means of ventilation. Outdoor air 
intakes and exhausts shall have automatic or gravity dampers that close 
when the ventilation system is not operating''. Section R403.5.1 of the 
2015 IECC also requires that ``Mechanical ventilation system fans shall 
meet the requirements of Table R403.5.1.'' Table R403.5.1 sets minimum 
efficacy for range hoods, in-line fans, and bathroom and utility room 
fans. DOE's 2012 IECC determination (previously footnoted) states that 
the 2009 IECC does not require any mechanical ventilation. Section 
R403.5 of the 2012 IECC refers to the 2012 International Residential 
Code and International Mechanical Code which, in tandem with the 2012 
IECC, require that a mechanical ventilation system meet these 
requirements or other approved means of ventilation in new homes.
    DOE believes that the primary technical authority on residential 
ventilation is the American Society of Heating, Refrigerating, and Air-
Conditioning Engineers (ASHRAE) Standard 62.2 committee. Their latest 
standard--ASHRAE Standard 62.2-2013,\13\ is the source of many of the 
requirements in the 2015 IMC and 2015 IRC and could therefore be used 
as an ``other approved means'' by agencies. If agencies wish to develop 
their own mechanical ventilation standards, they may choose to request 
an interpretation from the ASHRAE Standard 62.2 committee as to whether 
or not the agency's own standard is an acceptable substitute. Agencies 
may submit a request for interpretation to the committee using the 
procedures outlined at https://www.ashrae.org/standards-research--technology/standards-forms--procedures/how-to-request-an-interpretation. Neither the 2015 IMC, nor 2015 IRC, nor ASHRAE Standard 
62.2-2013 are incorporated by reference in this rule as they are 
options that an agency may choose to use.
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    \13\ Standard 62.2-2013 is available for read-only viewing at 
https://www.ashrae.org/standards-research--technology/standards--guidelines/other-ashrae-standards-referenced-in-code.
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C. Expanding the List of Energy End-Uses That Must Be Included in the 
30 Percent Savings Calculation

    Under the current 10 CFR 435.4, Federal agencies that are designing 
new Federal buildings that are low-rise residential buildings must only 
consider space heating, space cooling and domestic water heating when 
making the 30% savings calculation required in 10 CFR part 435 because 
the 2004 IECC and 2009 IECC only included those requirements. In 
addition to those three elements, the 2015 IECC includes explicit 
mechanical ventilation requirements that, the energy used for 
mechanical ventilation should be included in the 30 percent savings 
calculation required in 10 CFR part 435 as well. Also, both the 2015 
IECC and the 2009 IECC (the current baseline standard for 10 CFR part 
435) contain requirements for high-efficacy lighting and, therefore, 
lighting should be included in the 30 percent savings calculation as 
well. DOE believes that the impact of this change on agencies should be 
minimal as ventilation and lighting end-uses should be part of the 
output of any residential whole building simulation tool that an agency 
might be using for its calculations.
    This rule also updates the methodology used in the 30 Percent 
Savings Calculation by directing agencies to use the Simulated 
Performance Alternative in the 2015 IECC as opposed to the Simulated 
Performance Alternative in the 2009 IECC. Updates to the Simulation 
Performance Alternative in the 2015 IECC from the Simulated Performance 
Alternative in the 2009 IECC include three clarifications to the 
documentation, calculation procedure, and calculation software tools 
sections that point out that all subsections in these sections must be 
addressed, as well as a number of editorial changes to call out 
specific sections in the 2015 IECC. There were also a few more 
technical changes to the Simulated Performance Alternative, including a 
change to the calculation method for the internal shade fraction, a 
change to the treatment of air exchange rates, a change to the default 
heating system assumption in cases where electric heating without a 
heat pump is used, and a change in how thermal distribution system 
efficiency is treated. There are also new requirements for compliance 
documentation associated with the Simulated Performance Alternative in 
the 2015 IECC. These

[[Page 2861]]

requirements, while part of the 2015 IECC, do not apply to Federal 
buildings as they are associated with applications for building permits 
and certificates of occupancy required from local code officials.

D. Other Energy Efficiency Requirements

    DOE also notes that there are a number of statutory provisions, 
regulations, Executive Orders, and memoranda of understanding that 
govern energy consumption in new Federal buildings. These include, but 
are not limited to, the Executive Order 13693 (80 FR 15871 (March 25, 
2015)); sections 323, 431, 433, 434, and 523 of the Energy Independence 
and Security Act of 2007 (EISA 2007); section 109 of the Energy Policy 
Act of 2005 (Pub. L. 109-58); and 10 CFR parts 433 and 435. This rule 
supports and does not supplant these other applicable requirements and 
goals for new Federal buildings. For example, by designing buildings to 
meet the 2015 IECC baseline, Federal agencies also help achieve the 
energy intensity reductions mandated under section 431 of EISA 2007.
    Of particular significance is the Administration's Climate Action 
Plan, (CAP), issued June 2013, in which the President affirmed that the 
Federal government must position itself as a leader in clean energy and 
energy efficiency, and pledged that Federal agencies must surpass 
previous greenhouse gas reduction achievements, through a combination 
of consuming 20 percent of Federal electricity from renewable sources 
by 2020, and by pursuing greater energy efficiency in Federal 
buildings.\14\ Additionally, the President directed that efficiency 
standards for appliances and Federal buildings set in the first and 
second terms combined would reduce carbon pollution by at least 3 
billion metric tons cumulatively by 2030--equivalent to nearly one-half 
of the carbon pollution from the entire U.S. energy sector for one 
year. This rule, which DOE estimates will avoid cumulative emissions of 
690,200 metric tons of carbon dioxide through 2030, directly supports 
the Administration's undertaking to make energy efficiency in Federal 
buildings an essential stratagem in the government's enduring 
achievement of the greenhouse gas reduction goals set out in the CAP.
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    \14\ The President's Climate Action Plan, Office of the 
Executive Office of the President, https://www.whitehouse.gov/sites/default/files/image/president27sclimateactionplan.pdf, June 2013.
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E. Synopsis of Changes to the IECC Between the 2009 and 2015 IECC

    The IECC is updated every three years by the International Code 
Council (ICC). Between the 2009 IECC and the 2015 IECC, the ICC also 
issued the 2012 IECC. DOE, as part of its determination process, 
evaluates each new version of the IECC for low-rise residential 
buildings. The following summaries are taken directly from DOE's 
determinations and supporting analyses for the 2012 IECC \15\ and 2015 
IECC.\16\
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    \15\ See determination at http://www.gpo.gov/fdsys/pkg/FR-2012-05-17/pdf/2012-12000.pdf. See analysis of energy savings at https://www.energycodes.gov/sites/default/files/documents/NationalResidentialEnergyAnalysis.pdf.
    \16\ See determination at https://www.regulations.gov/document?D=EERE-2014-BT-DET-0030-0007.
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2012 IECC Changes
    In creating the 2012 IECC, ICC processed 27 sets of approved code 
change proposals. Overall, DOE found that the majority of changes in 
the 2012 IECC appear to be positive (i.e., have a positive impact on 
energy savings) within the context of the determination analysis. Of 
the 27 sets of changes:

 14 were considered beneficial;
 9 were considered neutral;
 2 were considered detrimental; and
 2 were considered to have an unquantifiable impact.

    In the 2012 IECC, DOE noted the following 14 sets of improvements:
    1. Increases in prescriptive insulation levels of walls, roofs and 
floors,
    2. Decrease (improvement) in U-factor allowances for fenestration,
    3. Decrease (improvement) in allowable Solar Heat Gain Coefficient 
(SHGC) for fenestration in warm climates,
    4. Infiltration control: Mandated whole house pressure test with 
strict allowances for air leakage rates,
    5. Wall insulation when structural sheathing is used,
    6. Ventilation fan efficiency,
    7. Lighting--Increased fraction of lamps required to be high-
efficacy,
    8. Air distribution systems--leakage control requirements,
    9. Hot water pipe insulation and length requirements,
    10. Skylight definition change,
    11. Penalizing electric resistance heating in the performance 
compliance path,
    12. Fireplace air leakage control,
    13. Insulating covers for in-ground spas, and
    14. Baffles for attic insulation.
    DOE also noted the following two changes that decrease the 
efficiency of the 2012 IECC:
    1. Steel-framed wall insulation, and
    2. Air barrier location.
    DOE also noted another two changes the effect of which was unclear:
    1. Fenestration SHGC requirement in climate zone 4, and
    2. Interior shading assumptions in the performance compliance path.
    DOE also noted nine additional changes that had no apparent impact 
on the energy performance of the 2012 IECC:
    1. Clarification of the scope of the residential building section 
of the IECC,
    2. Definition of a whole house ventilation system,
    3. A requirement for the results of the air leakage test to be put 
on the certificate,
    4. Inclusion of Visual Transmittance (VT) in the code,
    5. Clarification of recessed lighting leakage rates,
    6. Introduction of ASHRAE Test Procedure 193 for HVAC equipment 
leakage test rates,
    7. Introduction of a new test standard for home ventilation 
systems,
    8. Clarification for the requirement for thermal distribution 
system design in the Simulated Performance Alternative, and
    9. Moving of a requirement for sizing of equipment from an IRC 
reference into the IECC.
    All of these changes are discussed in more detail in DOE's 2012 
Determination.
2015 IECC Changes
    In creating the 2015 IECC, ICC processed 76 approved code change 
proposals. Overall, DOE found that the vast majority of changes in the 
2015 IECC appear to be neutral (i.e., have no direct impact on energy 
savings) within the context of the determination analysis. DOE also 
found that beneficial changes (i.e., increased energy savings) outweigh 
any changes with a detrimental effect on energy efficiency in 
residential buildings. Of the 76 total changes:

 6 were considered beneficial;
 62 were considered neutral;
 5 were considered negligible;
 2 were considered detrimental; and
 1 was considered to have an unquantifiable impact.

    The 6 changes considered beneficial are:

[[Page 2862]]



------------------------------------------------------------------------
         Nature of change                   Reason for evaluation
------------------------------------------------------------------------
Increases insulation requirements   Modestly reduces conduction losses
 for return ducts in attics from R-  from return ducts in attics.
 6 to R-8.
Adds requirements for demand-       Demand activated control reduces the
 activated control on hot water      runtime of circulation pumps.
 circulation systems and heat
 trace systems. Makes IECC, IRC,
 and IPC consistent and clarifies
 requirements for these systems.
Deletes requirement for domestic    Energy lost due to the elimination
 hot water (DHW) pipe insulation     of hot water pipe insulation on the
 to kitchen and the generic          kitchen pipe is typically more than
 requirement on long/large-          made up by added insulation
 diameter pipes. However, adds DHW   requirements for pipes \3/4\ inches
 pipe insulation for \3/4\-inch      in diameter, the most common size
 pipes.                              for trunk lines.
Adds demand control requirements    Demand activated control reduces the
 for recirculating systems that      runtime of circulation pumps.
 use a cold water supply pipe to
 return water to the tank.
Revises language requiring the      Additional buildings must meet the
 code to apply to historic           code requirements.
 buildings if no ``compromise to
 the historic nature and function
 of the building'' occurs.
Adds requirement for outdoor        Lowering boiler water temperature
 setback control for hot water       during periods of moderate outdoor
 boilers that controls the boiler    temperature reduces energy
 water temperature based on the      consumption of the boiler.
 outdoor temperature.
------------------------------------------------------------------------

    The two changes were considered detrimental were:

------------------------------------------------------------------------
         Nature of change                   Reason for evaluation
------------------------------------------------------------------------
Slightly increases sunroom U-       Applies to only climate zones 2 and
 factor.                             3; impacts only thermally isolated
                                     sunrooms.
Defines a new ``Tropical'' climate  Exception to code requirements
 zone and adds an optional           applicable to a small number of
 compliance path for semi-           homes in tropical areas.
 conditioned residential buildings
 with a list of pre-defined
 criteria to be deemed as code
 compliant in this climate zone.
------------------------------------------------------------------------

The remaining 68 changes were primarily editorial in nature. These 
changes are discussed in more detail in Table III.1 in DOE's 2015 IECC 
Determination.

IV. Compliance Date

    This final rule applies to new Federal low-rise residential 
buildings for which design for construction begins on or after one year 
from the publication date of this rulemaking in the Federal Register. 
(42 U.S.C. 6834(a)(1)) Such buildings must be designed to exceed the 
energy efficiency level of the appropriate updated voluntary standard 
by 30 percent if life-cycle cost-effective. However, at a minimum, such 
buildings must achieve the energy efficiency equal to that of the 
appropriate updated voluntary standard. One year lead time before the 
design for construction begins is consistent with DOE's previous 
updates to the energy efficiency baselines and the original statutory 
mandate for Federal building standards. One year lead time before 
design for construction begins helps minimize compliance costs to 
agencies, which may have planned buildings in various stages of design, 
and allows for design changes to more fully consider life-cycle cost-
effective measures (as opposed to having to revise designs in 
development, which may make incorporation of energy efficiency measure 
more difficult or expensive).

V. Reference Resources

    The Department originally prepared this list of resources to help 
Federal agencies achieve building energy efficiency levels of at least 
30 percent below the 2009 IECC. The Department has reviewed these 
resources and believes that they continue to be useful for helping 
agencies maximize their energy efficiency levels. The Department has 
updated this resource list as appropriate. These resources come in many 
forms and in a variety of media. Resources are provided for all 
buildings, and also specifically for low-rise residential buildings.

A. Resources for Low-Rise Residential Buildings

1. Energy Efficient Products--U.S. DOE Federal Energy Management 
Program and U.S. Environmental Protection Agency (EPA) ENERGY STAR 
Program
http://energy.gov/eere/femp/energy-and-water-efficient-products

    Federal agencies are required to specify Federal Energy Management 
Program (FEMP) designated or ENERGY STAR equipment, including building 
mechanical and lighting equipment and builder-supplied appliances, for 
purchase and installation in all new construction. 42 U.S.C. 8259b(b) 
Although this rule does not specifically address the use of this 
equipment, ENERGY STAR and FEMP-Designated products are generally more 
energy efficient than the corresponding requirements of the 2015 IECC, 
and may be used to achieve part of the savings required of Federal 
building designs. Therefore, DOE lists this Web site as a potential 
resource.
2. Life-Cycle Cost Analysis--U.S. DOE Federal Energy Management Program
http://energy.gov/sites/prod/files/2015/06/f23/ashb15.pdf

    The life-cycle cost analysis rules promulgated in 10 CFR part 436 
Subpart A Life-Cycle Cost Methodology and Procedures conform to 
requirements in the Federal Energy Management Improvement Act of 1988 
(Pub. L. 100-615) and subsequent energy conservation legislation, as 
well as Executive Order 13693, Planning for Federal Sustainability in 
the Next Decade. The life-cycle cost guidance and required discount 
rates and energy price projections are determined annually by FEMP and 
the Energy Information Administration, and are published in the Annual 
Supplement to The National Institute of Standards and Technology 
Handbook 135: ``Energy

[[Page 2863]]

Price Indices and Discount Factors for Life-Cycle Cost Analysis''.
3. ENERGY STAR Buildings--U.S. Environmental Protection Agency and U.S. 
Department of Energy
(http://www.energystar.gov/homes)

    ENERGY STAR is a government-backed program helping businesses and 
individuals protect the environment through superior energy efficiency. 
The EPA program requirements for ENERGY STAR-labeled homes, effective 
as of the date of this rule, provide a useful guide for meeting the 
Federal energy efficiency standard for low-rise residential buildings.
4. Passive House Institute US
http://www.phius.org/home-page

    This Web site provides information on designing and building very 
low energy homes.
5. Energy Efficient Home Design--U.S. DOE Building Technologies Program
http://energy.gov/energysaver/energy-efficient-home-design

    This Web site provides information on energy efficient home design 
strategies, and technologies to support energy efficiency in 
residences.
6. 2012 National Green Building Standard--ICC and NAHB
http://shop.iccsafe.org/2012-national-green-building-standard-icc-700-2012.html

    This standard provides requirements for building high-efficiency 
and green homes and multi-family buildings.
7. LEED for Homes--US Green Building Council
http://www.usgbc.org/articles/getting-know-leed-homes-design-and-construction

    This certification system provides requirements for building high-
efficiency and green homes and multi-family buildings.
8. Green Globes--The Green Building Initiative
http://www.thegbi.org/

    This certification provides requirements for building high-
efficiency and green multi-family buildings.
9. 2015 IECC--ICC
http://shop.iccsafe.org/codes/2015-international-codes-and-references/2015-international-energy-conservation-coder-1.html

    The baseline energy efficiency standard for low-rise residential 
buildings is the 2015 IECC.
10. Whole Building Design Guide--National Institute of Building 
Sciences
http://www.wbdg.org/

    A portal providing one-stop access to up-to-date information on a 
wide range of building-related guidance, criteria and technology from a 
``whole buildings'' perspective.

VI. Regulatory Analysis

A. Review Under Executive Order 12866, ``Regulatory Planning and 
Review''

    This final rule is a ``significant regulatory action'' under 
Executive Order 12866, ``Regulatory Planning and Review.'' 58 FR 51735 
(October 4, 1993). Accordingly, this action was subject to review by 
the Office of Information and Regulatory Affairs in the Office of 
Management and Budget (OMB). OMB has completed its review. As discussed 
previously in this rule, DOE is required to determine, based on the 
cost-effectiveness, whether the standards for Federal buildings should 
be updated to reflect an amendment to the IECC standard. As stated in 
this preamble, DOE complied with the statutory language by analyzing 
the cost-effectiveness of the 2015 IECC, and through DOE's involvement 
in the ICC code development process, including consideration of the 
cost-effectiveness of the 2015 IECC.
    DOE has also reviewed this regulation pursuant to Executive Order 
13563, issued on January 18, 2011. 76 FR 3281 (January 21, 2011). E.O. 
13563 is supplemental to and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866.
    Review under Executive Order 12866 requires an analysis of the 
economic effect of the rule. For this purpose, DOE estimated 
incremental first cost (in this case, the difference between the cost 
of a building designed to meet the 2015 IECC and a building designed to 
meet the 2009 IECC) for the Federal low-rise residential buildings 
sector, as well as life-cycle cost net savings. DOE determined that the 
total incremental first cost estimate is an increase of $4.1 million 
per year, with an average first cost increase of $2,051 per household. 
DOE estimated $14.8 million in annual life-cycle cost (LCC) net savings 
for the entire Federal low-rise residential buildings sector with an 
average life-cycle cost net savings of $7,421 per household.
    DOE's assumptions and methodology for the cost-effectiveness of 
this rule are based on DOE's cost-effectiveness analysis of the 2015 
IECC,\17\ as well as DOE's Environmental Assessment (EA) for this 
rulemaking.\18\ The EA identified a rate of new Federal residential 
construction of 4,936 homes per year. As described in the EA, this 
estimate is derived from consideration of data from a number of 
sources. DOE's cost-effectiveness analysis of the 2015 IECC provides 
tables for the first cost increase, the energy savings, and the life 
cycle costs associated with the 2015 IECC versus the 2012 IECC and 2009 
IECC by climate zone. DOE's cost-effectiveness report does not provide 
national average values, but does provide sufficient weighting data so 
that these national averages can be calculated. The weighting data 
provided in the cost-effectiveness report is used to generate the rows 
labeled ``National Average'' in Tables 1, 2, and 3 in this preamble.
---------------------------------------------------------------------------

    \17\ DOE's Cost Effectiveness report on the 2015 IECC is 
``National Cost-Effectiveness of the Residential Provisions of the 
2015 IECC'', PNNL-24240, Mendon et al, June 2015. Available at 
https://www.energycodes.gov/sites/default/files/documents/2015IECC_CE_Residential.pdf.
    \18\ The Environmental Assessment (EA) (DOE/EA-2020) is 
entitled, ``Environmental Assessment for Final Rule, 10 CFR part 
435, `Energy Efficiency Standards for New Federal Low-Rise 
Residential Buildings,' Baseline Standards Update''. The EA may be 
found in the docket for this rulemaking and at https://energy.gov/sites/prod/files/2016/12/f34/EA-2020-FEA-2016.pdf.
---------------------------------------------------------------------------

    Table 1 lists the increased first costs associated with the 2015 
IECC for a standard 2,400 ft\2\ prototypical home and a standard 1,200 
ft\2\ prototypical apartment/condo building. DOE believes that the 
majority of Federal low-rise residential construction will be single 
family homes built by the Department of Defense (or their

[[Page 2864]]

privatization contractors), but there is a possibility that some 
Federal low-rise multi-family buildings could be built,\19\ so the 
results of DOE's first cost analysis are shown in full. The 2015 IECC 
does increase the first cost of construction of new homes and 
apartments/condos compared to the 2009 IECC in all climate zones in the 
United States.
---------------------------------------------------------------------------

    \19\ DOE's main source of Federal construction information, the 
Federal Real Property Profile, does list Family Housing and 
Barracks/Apartments as separate categories but does not 
differentiate Barracks/Apartments on the basis of number of stories. 
DOE assumes the all Family Housing would fall under this rule, while 
Barracks/Apartments are regulated under the Federal building energy 
efficiency standards for commercial and high-rise multi-family 
buildings. While Barracks may be envisioned long low buildings 
containing rows of cots, this vision is driven primarily by old-
style barracks from the past. DOD's new training barracks tend to 
combine sleeping accommodations, class rooms, and physical training 
facilities and are therefore designed by DOD using the Federal 
commercial and high-rise multi-family requirements.

                                      Table 1--Total Incremental First Cost for 2015 IECC Compared to the 2009 IECC
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 2,400 ft \2\ house                        1,200 ft \2\ apartment/condo
                                                           --------------------------------------------------------------               \a\
                                                                                                                         -------------------------------
                       Climate zone                                                          Unheated         Heated      Slab, unheated
                                                                    Slab-on-grade          basement, or      basement      basement, or       Heated
                                                                                            crawlspace                      crawlspace       basement
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.........................................................                        $1,585          $1,553          $1,553            $848            $848
1-tropical \b\............................................                         1,152           1,152           1,152             848             848
2.........................................................                         1,920           1,888           1,888             968             968
3.........................................................                         2,495           2,463           2,463           1,175           1,175
4.........................................................                         2,005           1,973           1,973           1,012           1,012
5.........................................................                         1,493           1,461           1,715             827             865
6.........................................................                         2,718           2,686           2,686           1,266           1,266
7.........................................................                         2,718           2,686           2,686           1,266           1,266
8.........................................................                         2,718           2,686           2,686           1,266           1,266
National Average..........................................                         2,060           2,028           2,081           1,026           1,034
Foundation Weight \c\.....................................                         0.479           0.379           0.142           0.858           0.142
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ For multifamily homes with an oil-fired boiler, an additional incremental cost of $30.55 for the outdoor air temperature reset applies to all
  climate zones.
\b\ This cost applies to 35% of all new single-family homes in the tropical climate zone. The tropical climate zone accounts for around 50% of all new
  single-family construction starts in climate zone 1.
\c\ Foundation weights from Table 1.3 of the 2015 IECC Cost-Effectiveness Report.

    The first cost data shown in Table 1 can be further aggregated by 
foundation type using the foundation type weightings found in the 2015 
IECC Cost-Effectiveness report (and also shown in Table 1 in the row 
labeled ``Foundation Weights''). The results of that weighting indicate 
that the typical first cost of a home would be $2,051 and that of an 
apartment/condo would be $1,027. These first cost increases should be 
compared to the estimated first cost of new Federal low-rise 
residential construction, but that information is not typically 
publicly available. Instead, DOE has chosen to compare these costs to 
typical costs in the private sector.
    The National Association of Realtors (NAR) in a press release dated 
September 21, 2015 states that the median U.S. single family home price 
was $230,200 in August 2015.\20\ The $2,051 cost increase represents 
approximately 0.9% of the average cost of a new home. As previously 
stated, DOE does not believe that a large fraction of Federal low-rise 
construction falls under this rule, but for comparison, the same NAR 
press release lists the price for condominiums at $217,400. The $1,027 
cost increase for condominiums represents a 0.5% increase. Any increase 
in first cost would be accompanied by a reduction in energy costs and 
an increase in life cycle cost savings.
---------------------------------------------------------------------------

    \20\ See http://www.realtor.org/news-releases/2015/09/existing-home-sales-stall-in-august-prices-moderate.
---------------------------------------------------------------------------

    The estimated energy cost savings associated with the 2015 IECC is 
shown in Table 2. This table is based on a combination of single-family 
homes and apartments/condos as described in DOE's cost-effectiveness 
report. While the weighting of homes and apartments/condos may not be 
identical in the private and Federal sectors, the trends are similar 
for both single-family homes and apartments/condos. The 2015 IECC saves 
a considerable amount of energy costs over the 2009 IECC in all climate 
zones in the United States.

 Table 2--Average Annual Energy Cost Savings for the 2015 IECC Compared
                            to the 2009 IECC
------------------------------------------------------------------------
                                                         Average annual
                                                          energy cost
                     Climate zone                         savings ($/
                                                         residence-yr)
------------------------------------------------------------------------
1....................................................               $179
2....................................................                220
3....................................................                256
4....................................................                353
5....................................................                353
6....................................................                497
7....................................................                841
8....................................................              1,199
National Average.....................................                315
------------------------------------------------------------------------

    The life-cycle cost impact of the 2015 IECC is shown in Table 3. 
Again, these values represent the combination of single-family homes 
and apartments/condos, but the trends are clear. The 2015 IECC has 
large life cycle cost-savings in all climate zones in the U.S.

Table 3--Total Life Cycle Cost Savings for the 2015 IECC Compared to the
                                2009 IECC
------------------------------------------------------------------------
                                                        Total life cycle
                     Climate zone                       cost savings ($/
                                                         residence-yr)
------------------------------------------------------------------------
1....................................................            +$4,418
2....................................................             +5,725
3....................................................             +6,569
4....................................................             +8,088
5....................................................             +7,697
6....................................................            +11,231
7....................................................            +17,525

[[Page 2865]]

 
8....................................................            +24,003
National Average.....................................             +7,421
------------------------------------------------------------------------

    Multiplying the estimated 4936 new Federal homes per year by the 
national average values in Tables 1, 2, and 3 provides a summary of 
annual cost increases, energy savings, and first cost-increases for the 
entire Federal low-rise sector shown in Table 4.

  Table 4--Annual National Average First Cost Increase, Energy Savings,
 and Life Cycle Cost Savings for Federal Low Rise Residential Sector for
                   the 2015 IECC Compared to 2009 IECC
------------------------------------------------------------------------
                                                        Annual national
                                                       average fist cost
                        Metric                              increase
                                                           (million)
------------------------------------------------------------------------
Incremental First Cost Increase......................              $9.24
Energy Savings.......................................               1.55
Life Cycle Cost Savings..............................               36.6
------------------------------------------------------------------------

B. Administrative Procedure Act

    DOE notes that the determination regarding the 2015 IECC in the 
context of State building codes was subject to notice and comment in 
evaluating the voluntary consensus codes. See 79 FR 57915 (September 
26, 2014) for the preliminary determination and 80 FR 33250 (June 11, 
2015) for the final determination. DOE also notes that the 
determination regarding the 2012 IECC in the context of State building 
codes was subject to notice and comment in evaluating the voluntary 
consensus codes. See 76 FR 42688 (July 19, 2011) for the preliminary 
determination and 77 FR 29322 (May 17, 2012) for the final 
determination. The determinations made in the context of the State 
codes are equally applicable in the context of Federal buildings. DOE 
finds that providing notice and comment on the determinations again in 
the context of Federal buildings would be unnecessary. The fact that 
the voluntary consensus codes apply to Federal buildings as opposed to 
the general building stock does not require a different evaluation of 
energy efficiency and cost-effectiveness. Additionally, DOE notes that 
this rule, which updates energy efficiency performance standards for 
the design and construction of new Federal buildings, is a rule 
relating to public property, and therefore is not subject to the 
rulemaking requirements of the Administrative Procedure Act, including 
the requirement to publish a notice of proposed rulemaking. (See 5 
U.S.C. 553(a)(2))

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, Proper Consideration of Small Entities in 
Agency Rulemaking, 67 FR 53461 (August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process, 68 FR 7990. The Department 
has made its procedures and policies available on the Office of General 
Counsel's Web site: http://energy.gov/gc/office-general-counsel.
    DOE has determined that a notice of proposed rulemaking is not 
required by 5 U.S.C. 553 or any other law for issuance of this rule. As 
such, the analytical requirements of the Regulatory Flexibility Act do 
not apply.

D. Review Under the Paperwork Reduction Act of 1995

    This rulemaking will impose no new information or record keeping 
requirements. Accordingly, Office of Management and Budget (OMB) 
clearance is not required under the Paperwork Reduction Act. (44 U.S.C. 
3501 et seq).

E. Review Under the National Environmental Policy Act of 1969

    The Department prepared an Environmental Assessment (EA) (DOE/EA-
2020) entitled, ``Environmental Assessment for Final Rule, 10 CFR part 
435, `Energy Efficiency Standards for New Federal Low-Rise Residential 
Buildings,' Baseline Standards Update,'' \21\ pursuant to the Council 
on Environmental Quality's (CEQ) Regulations for Implementing the 
Procedural Provisions of the National Environmental Policy Act (40 CFR 
parts 1500-1508), the National Environmental Policy Act of 1969 (NEPA), 
as amended (42 U.S.C. 4321 et seq.), and DOE's NEPA Implementing 
Procedures (10 CFR part 1021).
---------------------------------------------------------------------------

    \21\ The EA may be found in the docket for this rulemaking and 
at https://energy.gov/sites/prod/files/2016/12/f34/EA-2020-FEA-2016.pdf.
---------------------------------------------------------------------------

    The EA addresses the possible incremental environmental effects 
attributable to the application of the final rule. The only anticipated 
impact would be a decrease in outdoor air pollutants resulting from 
decreased fossil fuel burning for energy use in Federal buildings. 
Therefore, DOE has issued a Finding of No Significant Impact (FONSI), 
pursuant to NEPA, the regulations of the Council on Environmental 
Quality (40 CFR parts 1500-1508), and DOE's regulations for compliance 
with NEPA (10 CFR part 1021).
    To identify the potential environmental impacts that may result 
from implementing the final rule on new Federal low-rise residential 
buildings, DOE compared the requirements of the final rule updating 
energy efficiency performance standard for Federal new low-rise 
residential buildings to 2015 IECC with the ``no-action alternative'' 
of using the current Federal standards (the 2009 IECC). This comparison 
is identical to that undertaken by DOE in its determinations of energy 
savings of those standards and codes.
    Accordingly, DOE concludes in the EA that new Federal buildings 
designed and constructed to the 2015 IECC will use less energy than new 
Federal buildings designed and constructed to the 2009 IECC because the 
2015 IECC is more efficient than 2009 IECC. This decrease in energy 
usage translates to reduced emissions of carbon dioxide 
(CO2), nitrogen oxides (NOX), and mercury (Hg) 
over the thirty-year period examined in the EA. Cumulative emission 
reductions for 30 years of construction (2018 through 2047) and 30 
years of energy reduction for each building built during that period 
can be estimated at up to 4,114,800 metric tons of CO2, up 
to 3,147 metric tons of NOX, and up to 0.0338 metric tons of 
Hg. DOE conducted a separate calculation to determine emissions 
reductions relative to the targets identified in the CAP. This 
calculation showed that the cumulative reduction in CO2 
emissions through 2030 amounts to 690,220 metric tons of 
CO2.\22\
---------------------------------------------------------------------------

    \22\ See discussion of CAP calculations in footnote 12 on page 
23 of the EA for this rule. The EA may be found in the docket for 
this rulemaking and at https://energy.gov/sites/prod/files/2016/12/f34/EA-2020-FEA-2016.pdf.

---------------------------------------------------------------------------

[[Page 2866]]

F. Review Under Executive Order 13132, ``Federalism''

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 
1999), imposes certain requirements on agencies formulating and 
implementing policies or regulations that preempt State law or that 
have federalism implications. The Executive Order requires agencies to 
examine the constitutional and statutory authority supporting any 
action that would limit the policymaking discretion of the States and 
to carefully assess the necessity for such actions. The Executive Order 
also requires agencies to have an accountable process to ensure 
meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications. 
On March 14, 2000, DOE published a statement of policy describing the 
intergovernmental consultation process it will follow in the 
development of such regulations, 65 FR 13735. DOE examined this rule 
and determined that it does not preempt State law and does not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of Government. No further 
action is required by Executive Order 13132.

G. Review Under Executive Order 12988, ``Civil Justice Reform''

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Federal agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct, rather than a general standard and 
promote simplification and burden reduction. Section 3(b) of Executive 
Order 12988 specifically requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect, if any; (2) clearly specifies any effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct, while promoting simplification and burden 
reduction; (4) specifies the retroactive effect, if any; (5) adequately 
defines key terms; and (6) addresses other important issues affecting 
clarity and general draftsmanship under any guidelines issued by the 
Attorney General. Section 3(c) of Executive Order 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in section 3(a) and section 3(b) to determine whether they 
are met or it is unreasonable to meet one or more of them. DOE has 
completed the required review and determined that, to the extent 
permitted by law, this rule meets the relevant standards of Executive 
Order 12988.

H. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. 
L. 104-4) requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and tribal governments and the 
private sector. For a proposed regulatory action likely to result in a 
rule that may cause the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector of $100 million 
or more in any one year (adjusted annually for inflation), section 202 
of UMRA requires a Federal agency to publish a written statement that 
estimates the resulting costs, benefits, and other effects on the 
national economy. (2 U.S.C. 1532(a) and (b)) The UMRA also requires a 
Federal agency to develop an effective process to permit timely input 
by elected officers of State, local, and tribal governments on a 
proposed ``significant intergovernmental mandate'' and requires an 
agency plan for giving notice and opportunity for timely input to 
potentially affected small governments before establishing any 
requirements that might significantly or uniquely affect small 
governments. On March 18, 1997, DOE published a statement of policy on 
its process for intergovernmental consultation under UMRA (62 FR 12820) 
(also available at http://energy.gov/gc/office-general-counsel). This 
final rule contains neither an intergovernmental mandate nor a mandate 
that may result in the expenditure of $100 million or more in any year 
by State, local, and tribal governments, in the aggregate, or by the 
private sector, so these requirements under the Unfunded Mandates 
Reform Act do not apply.

I. Review Under the Treasury and General Government Appropriations Act 
of 1999

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 (Pub. L. 105-277) requires Federal agencies to issue a 
Family Policymaking Assessment for any rule that may affect family 
well-being. This final rule would not have any impact on the autonomy 
or integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

J. Review Under Executive Order 12630, ``Governmental Actions and 
Interference With Constitutionally Protected Property Rights''

    The Department has determined, under Executive Order 12630, 
``Governmental Actions and Interference with Constitutionally Protected 
Property Rights'' 53 FR 8859 (March 18, 1988) that this rule would not 
result in any takings which might require compensation under the Fifth 
Amendment to the United States Constitution.

K. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for agencies to review most 
disseminations of information to the public under guidelines 
established by each agency pursuant to general guidelines issued by 
OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), 
and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). 
DOE has reviewed this final rule under the OMB and DOE guidelines and 
has concluded that it is consistent with applicable policies in those 
guidelines.

L. Review Under Executive Order 13211, ``Actions Concerning Regulations 
That Significantly Affect Energy Supply, Distribution, or Use''

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to the 
Office of Information and Regulatory Affairs (OIRA), Office of 
Management and Budget, a Statement of Energy Effects for any proposed 
significant energy action. A ``significant energy action'' is defined 
as any action by an agency that promulgated or is expected to lead to 
promulgation of a final rule, and that: (1) Is a significant regulatory 
action under Executive Order 12866, or any successor order; and (2) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy, or (3) is designated by the 
Administrator of OIRA as a significant energy action. For any proposed 
significant energy action, the agency must give a detailed statement of 
any adverse effects on energy supply, distribution, or use should the 
proposal be implemented, and of reasonable alternatives to the

[[Page 2867]]

action and their expected benefits on energy supply, distribution, and 
use. DOE's Energy Information Administration (EIA) estimates that new 
construction in the residential sector will range from average about 81 
million households in the US in 2016, with a growth rate of roughly 
0.8% per year which is equivalent to about 648,000 new households per 
year.\23\ This rule is expected to incrementally reduce the energy 
usage of approximately 4936 \24\ units of Federal low-rise residential 
construction annually. Thus, the rule represents approximately 0.76% of 
the expected annual U.S. construction in 2017, and less in every 
succeeding year. This final rule would not have a significant adverse 
effect on the supply, distribution, or use of energy and, therefore, is 
not a significant energy action. Accordingly, DOE has not prepared a 
Statement of Energy Effects.
---------------------------------------------------------------------------

    \23\ See Table A4 of the 2016 Annual Energy Outlook at http://www.eia.gov/forecasts/aeo/.
    \24\ See Environmental Assessment for this rule for origin of 
the 4936 homes estimate.
---------------------------------------------------------------------------

M. Review Under Section 32 of the Federal Energy Administration Act of 
1974

    Under section 301 of the Department of Energy Organization Act 
(Pub. L. 95-91), DOE must comply with section 32 of the Federal Energy 
Administration Act of 1974 (Pub. L. 93-275), as amended by the Federal 
Energy Administration Authorization Act of 1977 (Pub. L. 95-70). (15 
U.S.C. 788) Section 32 provides that where a proposed rule authorizes 
or requires use of commercial standards, the NOPR must inform the 
public of the use and background of such standards. In addition, 
section 32(c) requires DOE to consult with the Department of Justice 
(DOJ) and the Federal Trade Commission (FTC) concerning the impact of 
the commercial or industry standards on competition.
    Although section 32 specifically refers to the proposed rule stage, 
DOE is meeting these requirements at the final rule stage because there 
was no proposed rule for this action. This final rule incorporates 
testing methods contained in the following commercial standard: ICC 
2015 IECC, International Energy Conservation Code, 2014, International 
Code Council, ISBN 978-1-60983-486-9.
    DOE has evaluated these standards and notes that the IECC Standard 
is developed under ICC's governmental consensus standard procedures, 
and is under a three-year maintenance cycle. ICC has established a 
program for regular publication of errata and revisions, including 
procedures for timely, documented, consensus action on requested 
changes to the IECC. The 2015 IECC was published in 2014. However, DOE 
is unable to conclude whether the IECC fully complies with the 
requirements of section 32(b) of the FEAA (i.e., whether they were 
developed in a manner that fully provides for public participation, 
comment, and review). DOE has consulted with both the Attorney General 
and the Chairman of the FTC about the impact on competition of using 
the methods contained in these standards and has received no comments 
objecting to their use.

N. Description of Materials Incorporated by Reference

    In this rule, DOE incorporates by reference the ICC 2015 IECC, 
International Energy Conservation Code, Copyright 2014. This U.S. 
standard provides minimum requirements for energy efficient designs for 
low-rise residential buildings. Copies of this standard are available 
from the International Code Council, 4051 West Flossmoor Road, Country 
Club Hills, IL 60478, 1-888-422-7233, http://www.iccsafe.org.

VII. Congressional Notification

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(2).

VIII. Approval of the Office of the Secretary

    The Secretary of Energy has approved publication of this final 
rule.

List of Subjects in 10 CFR Part 435

    Buildings and facilities, Energy conservation, Federal buildings 
and facilities, Housing, Incorporation by reference.

    Issued in Washington, DC, on December 28, 2016.
David J. Friedman,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons set forth in the preamble, the Department of Energy 
amends part 435 of chapter II of title 10 of the Code of Federal 
Regulations as set forth below:

PART 435--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND 
CONSTRUCTION OF NEW FEDERAL LOW-RISE RESIDENTIAL BUILDINGS

0
1. The authority citation for part 435 continues to read as follows:

    Authority: 42 U.S.C. 6831-6832; 6834-6836; 42 U.S.C. 8253-54, 42 
U.S.C. 7101 et seq.

0
2. Section 435.2 is amended by:
0
a. Adding in alphabetical order the definition of ``IECC Baseline 
Building 2015''; and
0
b. Revising the definition of ``New Federal building''.
    The revision and addition read as follows:


Sec.  435.2  Definitions.

* * * * *
    IECC Baseline Building 2015 means a building that is otherwise 
identical to the proposed building but is designed to meet, but not 
exceed, the energy efficiency specifications in the ICC IECC 2015 
(incorporated by reference, see Sec.  435.3).
* * * * *
    New Federal building means any new building (including a complete 
replacement of an existing building from the foundation up) to be 
constructed by, or for the use of, any federal agency. Such term shall 
include buildings built for the purpose of being leased by a federal 
agency, and privatized military housing.
* * * * *

0
3. Revise Sec.  435.3(b) to read as follows:


Sec.  435.3  Materials incorporated by reference.

* * * * *
    (b) ICC. International Code Council, 4051 West Flossmoor Road, 
Country Club Hills, IL 60478, 1-888-422-7233, or go to http://www.iccsafe.org/.
    (1) ICC International Energy Conservation Code (IECC), 2004 
Supplement Edition (``IECC 2004''), January 2005, IBR approved for 
Sec. Sec.  435.2, 435.4, 435.5;
    (2) ICC International Energy Conservation Code (IECC), 2009 Edition 
(``IECC 2009''), January 2009, IBR approved for Sec. Sec.  435.2, 
435.4, 435.5.
    (3) ICC International Energy Conservation Code (IECC), 2015 Edition 
(``IECC 2015''), published May 30, 2014, IBR approved for Sec. Sec.  
435.2, 435.4, 435.5.

0
4. Section 435.4 is amended by:
0
a. Revising the introductory text of paragraph (a)(2);
0
b. Adding paragraph (a)(3); and
0
c. Revising paragraph (b).
    The revisions and addition reads as follows:


Sec.  435.4   Energy efficiency performance standard.

    (a) * * *
    (2) All Federal agencies shall design new Federal buildings that 
are low-rise residential buildings, for which design for construction 
began on or after

[[Page 2868]]

August 10, 2012, but before January 10, 2018 to:
* * * * *
    (3) All Federal agencies shall design new Federal buildings that 
are low-rise residential buildings, for which design for construction 
began on or after January 10, 2018 to:
    (i) Meet the IECC 2015, (incorporated by reference, see Sec.  
435.3), including the mandatory mechanical ventilation requirements in 
Section R403.6 of the 2015 IECC; and
    (ii) If life-cycle cost-effective, achieve energy consumption 
levels, calculated consistent with paragraph (b) of this section, that 
are at least 30 percent below the levels of the IECC Baseline Building 
2015.
    (b)(1) For new Federal low-rise residential buildings whose design 
for construction began before January 10, 2018, energy consumption for 
the purposes of calculating the 30 percent savings shall include space 
heating, space cooling, and domestic water heating.
    (2) For new Federal low-rise residential buildings whose design for 
construction began on or after before January 10, 2018, energy 
consumption for the purposes of calculating the 30 percent savings 
shall include space heating, space cooling, lighting, mechanical 
ventilation, and domestic water heating.
* * * * *

0
5. Revise Sec.  435.5 to read as follows:


Sec.  435.5   Performance level determination.

    (a) For new Federal buildings for which design for construction 
began on or after January 3, 2007, but before August 10, 2012, each 
Federal agency shall determine energy consumption levels for both the 
IECC Baseline Building 2004 and proposed building by using the 
Simulated Performance Alternative found in section 404 of the IECC 2004 
(incorporated by reference, see Sec.  435.3).
    (b) For new Federal buildings for which design for construction 
began on or after August 10, 2012, but before January 10, 2018, each 
Federal agency shall determine energy consumption levels for both the 
IECC Baseline Building 2009 and proposed building by using the 
Simulated Performance Alternative found in section 405 of the IECC 2009 
(incorporated by reference, see Sec.  435.3).
    (c) For new Federal buildings for which design for construction 
began on or after January 10, 2018 each Federal agency shall determine 
energy consumption levels for both the IECC Baseline Building 2015 and 
proposed building by using the Simulated Performance Alternative found 
in section R405 of the IECC 2015 (incorporated by reference, see Sec.  
435.3).

[FR Doc. 2017-00025 Filed 1-9-17; 8:45 am]
 BILLING CODE 6450-01-P