[Federal Register Volume 84, Number 237 (Tuesday, December 10, 2019)]
[Notices]
[Pages 67435-67437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26550]


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DEPARTMENT OF ENERGY

[EERE-2018-BT-DET-0014]


Final Determination Regarding Energy Efficiency Improvements in 
the 2018 International Energy Conservation Code (IECC)

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

ACTION: Notice of determination.

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SUMMARY: The U.S. Department of Energy (DOE) has reviewed the 2018 
edition of the International Energy Conservation Code (IECC) and 
determined the updated edition would improve energy efficiency in 
buildings subject to the code compared to the 2015 edition. DOE 
analysis indicates that buildings meeting the 2018 IECC (as compared 
with buildings meeting the 2015 IECC) would result in national site 
energy savings of 1.68 percent, national source energy savings of 1.91 
percent, and national energy cost savings of approximately 1.97 percent 
of residential building energy consumption. Upon publication of this 
affirmative determination, each State is required by statute to certify 
that it has reviewed the provisions of its residential building code 
regarding energy efficiency, and made a determination as to whether to 
update its code to meet or exceed the 2018 IECC. Additionally, this 
notice provides guidance on state code review processes and associated 
certifications.

DATES: Certification statements provided by States shall be submitted 
by December 10, 2021.

ADDRESSES: A copy of the final analysis, as well as links to the 
Federal docket and public comments received, are available at: https://www.energycodes.gov/development/determinations.
    Certification Statements must be addressed to the Building 
Technologies Office--Building Energy Codes Program Manager, U.S. 
Department of Energy, Office of Energy Efficiency and Renewable Energy, 
1000 Independence Avenue SW, EE-5B, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Jeremiah Williams; U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, 1000 
Independence Avenue SW, EE-5B, Washington, DC 20585; (202) 441-1288; 
[email protected]. For legal issues, please contact Matthew 
Ring; U.S. Department of Energy, Office of the General Counsel, 1000 
Independence Avenue SW, GC-33, Washington, DC 20585; (202) 586-2555; 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    Title III of the Energy Conservation and Production Act (ECPA), as 
amended, establishes requirements for building energy conservation 
standards, which are administered by the DOE Building Energy Codes 
Program. (42 U.S.C. 6831 et seq.) Section 304(a)(5)(A), as amended, of 
ECPA provides that whenever the 1992 CABO Model Energy Code, or any 
successor to that code, is

[[Page 67436]]

revised, the Secretary of Energy (Secretary) must make a determination, 
not later than 12 months after such revision, whether the revised code 
would improve energy efficiency in residential buildings, and must 
publish notice of such determination in the Federal Register. (42 
U.S.C. 6833(a)(5)(A)) If the Secretary determines that the revision of 
the CABO Model Energy Code, or any successor thereof, improves the 
level of energy efficiency in residential buildings then, not later 
than two years after the date of the publication of such affirmative 
determination, each State is required to certify that it has reviewed 
its residential building code regarding energy efficiency, and made a 
determination as to whether it is appropriate to revise its code to 
meet or exceed the provisions of the successor code. (42 U.S.C. 
6833(a)(5)(B))
    The International Energy Conservation Code (IECC) is the 
contemporary successor to the CABO Model Energy Code specified in ECPA. 
The IECC is revised every three years through an established code 
development and consensus process administered by the International 
Code Council (ICC). Code change proposals may be submitted by any 
interested party, and are evaluated through a series of public 
hearings. As part of the ICC process, any interested party may submit 
proposals, as well as written comments or suggested changes to any 
proposal, and make arguments before a committee of experts assembled by 
the ICC. Proposals are presented to interested parties, and ultimately 
decided by a vote by the ICC Governmental Member Representatives, with 
the collection of accepted proposals forming the revised edition of the 
IECC. More information on the ICC code development process is available 
at: https://www.iccsafe.org/codes-tech-support/codes/code-development-process/code-development-2/.
    The ICC published the most recent revision of the IECC, the 2018 
edition of the IECC (2018 IECC or 2018 edition), on August 31, 2017, 
triggering the statutorily required DOE review process. To meet its 
statutory obligation, DOE conducted a preliminary analysis to quantify 
the expected energy savings associated with the 2018 IECC relative to 
the 2015 edition. Notice of this preliminary analysis was published in 
the Federal Register on May 2, 2019 (84 FR 18833), and is available at: 
https://www.regulations.gov/docket?D=EERE-2018-BT-DET-0014.
    DOE reviewed the 2018 IECC to identify changes that have a direct 
impact on energy efficiency, and which could be reasonably quantified 
in estimating national average savings impacts. In total, 47 individual 
changes were identified, and of these changes:
     11 were expected to reduce energy use;
     3 were expected to increase energy use, and;
     33 were considered administrative or not energy related.
    A more detailed discussion of each of the 47 changes may be found 
in the final energy savings analysis, which is available at: https://www.energycodes.gov/development/determinations.
    In its preliminary analysis, DOE found that many of the code 
changes are anticipated to have a neutral impact on energy efficiency, 
while a small number of code changes are anticipated to yield improved 
energy efficiency, and a smaller number of code changes are anticipated 
to be detrimental to energy efficiency. DOE's preliminary analysis 
identified two key changes that compose the bulk of the energy savings 
associated with the updated code:
     RE31 (Fenestration): Lowers (improves) fenestration U-
factors in climate zones 3 through 8, and;
     RE127 (Lighting): Increases high-efficacy lighting from 
75% to 90% of permanently installed fixtures in all homes.
    These changes are expected to have a significant and measurable 
impact on energy efficiency in residential buildings because they 
increase energy savings, and impact a significant fraction of new 
homes. Overall, DOE's preliminary analysis found that the revisions in 
the 2018 IECC will yield annual aggregated site energy, source energy, 
and energy cost savings of 1.68 percent, 1.91 percent and 1.97 percent, 
respectively.
    Together, the key impacts identified above are expected to result 
in life-cycle cost savings ranging from a low of $398 in climate zone 1 
to a high of $1071 in climate zone 8. Expected payback ranges from 0.0 
years (immediate payback) in climate zones 1 and 2 to 1.8 years in 
climate zone 3. National average savings are $480 with a payback of 1.1 
years.

II. Public Participation

    DOE accepted public comments on the Notice of Preliminary 
Determination for the 2018 IECC until June 3, 2019, and received 
submissions from a total of three commenters. DOE received responsive 
comments from two commenters. DOE received a comment from a third 
commenter; however, this comment was not responsive because it was 
outside the scope of this determination. Responsive public comments and 
associated DOE answers are described below.

Responsible Energy Codes Alliance (RECA)

    Comment: RECA commented that it agrees with DOE's affirmative 
determination, supports DOE's dual qualitative/quantitative approach to 
assessing the 2018 IECC, and agrees that the improvements in 
fenestration efficiency and lighting efficiency will likely have the 
most directly positive impact on energy conservation. RECA also agrees 
with DOE's split qualitative assessment of the Energy Rating Index 
(ERI) changes, noting that higher thresholds will reduce energy 
efficiency while enhanced envelope backstops will help maintain or 
increase energy efficiency.
    RECA also commented that the consideration of costs and cost 
effectiveness metrics are not referenced in 42 U.S.C. 6833(a)(5)(A), 
and suggests they are therefore not appropriate to include in either 
the preliminary or final determination. RECA further noted that 
inclusion of cost information in the preliminary determination departs 
from the precedent of previous determinations. RECA urged DOE to either 
eliminate the cost discussion from the final determination or, at a 
minimum, clarify that the cost effectiveness and payback information is 
provided for informational purposes and does not play a role in the 
determination. RECA noted that DOE's work to provide technical 
assistance, including cost effectiveness information to states and 
local jurisdictions, is part of its statutory directive in 42 U.S.C. 
6833(d), but that such information should be provided through channels 
other than this determination.
    Response: DOE notes that energy savings is the deciding factor in 
making its preliminary and final determinations. Cost and payback 
information is included for informational purposes only. DOE also 
intends to continue to conduct comprehensive cost-effectiveness 
analysis as a state technical assistance function in the future.

Edison Electric Institute (EEI)

    Comment: EEI commented that keeping the site-source conversion 
factor used in the preliminary analysis static going forward ignores 
regional variations, and ignores overall trends from a previous DOE 
report that gives alternative, generally lower, ratios based on a 
methodology that is responsive to future deployment of renewable 
electricity generation. EEI indicated that

[[Page 67437]]

national source factors for electricity should decline over a 30-year 
period, or a projected value representing the 2030 or 2040 timeframe 
should be selected, to account for the increased prevalence of 
renewable energy on the utility grid.
    Response: DOE acknowledges that the primary energy sources for 
electricity generation are changing and agrees in principle that 
renewable energy will likely result in lower site-source ratios in the 
future. However, DOE's determination methodology is based simply on a 
comparison of the first-year energy cost savings of the 2018 IECC 
(relative to the previous 2015 IECC). The calculation relies on current 
factors and does not make projections beyond the first year, as would 
be necessary to apply the site-source conversion factors suggested by 
the comment. The out-year approach would also further introduce risk 
associated with future uncertainties regarding fuel prices, the shares 
and distribution of heating fuels among new residences, the regional 
distribution of new residences, or the mix of primary energy sources 
for electricity generation. DOE therefore elects not to incorporate the 
suggested change, although it notes that declining factors may be 
appropriate for other forms of analysis where building energy code 
impacts are projected into the future or assessed relative to changing 
grid conditions.

III. Determination Statement

    Residential buildings meeting the 2018 IECC (compared to the 
previous 2015 IECC edition) are expected to incur the following savings 
on a weighted national average basis:
     1.68 percent of annual site energy;
     1.91 percent of annual source energy, and;
     1.97 percent of annual energy costs.

DOE has rendered the conclusion that the 2018 IECC will improve energy 
efficiency in residential buildings, and, therefore, receives an 
affirmative determination under Section 304(a) of ECPA.

IV. State Certification

    Based on today's determination, each State is required to review 
the provisions of its residential building code regarding energy 
efficiency, and determine whether it is appropriate for such state to 
revise its building code to meet or exceed the energy efficiency 
provisions of the 2018 IECC. (42 U.S.C. 6833(a)(5)(B)) This action must 
be made not later than 2 years from the date of publication of a Notice 
of Determination, unless an extension is provided.

A. State Review and Update

    The State determination must be: (1) Made after public notice and 
hearing; (2) in writing; (3) based upon findings and upon the evidence 
presented at the hearing; and (4) made available to the public. (42 
U.S.C. 6833(a)(2)) States have discretion with regard to the hearing 
procedures they use, subject to providing an adequate opportunity for 
members of the public to be heard and to present relevant information. 
The Department recommends publication of any notice of public hearing 
through appropriate and prominent media outlets, such as in a newspaper 
of general circulation. States should also be aware that this 
determination does not apply to IECC chapters specific to 
nonresidential buildings,\1\ as defined in the IECC. Therefore, States 
should certify their evaluations of their State building codes for 
residential buildings with respect to all provisions of the IECC, 
except for those chapters not affecting residential buildings. Because 
state codes are based on a variety of model code editions, DOE 
encourages States to consider the energy efficiency improvements of the 
2018 IECC, as well as other recent editions of the IECC, which may also 
represent a significant energy and cost savings opportunity. DOE 
determinations regarding earlier editions of the IECC are available on 
the DOE Building Energy Codes Program website.\2\ Further national and 
state analysis is also available.\3\
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    \1\ For information regarding nonresidential buildings based on 
ANSI/ASHRAE/IES Standard 90.1 see https://www.energycodes.gov/development/determinations.
    \2\ Available at http://www.energycodes.gov/regulations/determinations/previous.
    \3\ Available at http://www.energycodes.gov/development/residential/iecc_analysis.
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B. State Certification Statements

    State certifications are to be sent to the address provided in the 
ADDRESSES section, or may be submitted to 
[email protected], and must be submitted in accordance 
with the deadline identified in the DATES section. If a State makes a 
determination that it is not appropriate to revise the energy 
efficiency provisions of its residential building code, the State must 
submit to the Secretary, in writing, the reasons for this 
determination, which shall be made available to the public. (42 U.S.C. 
6833(a)(4))
    The DOE Building Energy Codes Program tracks and reports State code 
adoption and certifications.\4\ Once a State has adopted an updated 
residential code, DOE typically provides software, training, and 
support for the new code, as long as the new code is based on the 
national model code (i.e., the 2018 IECC). DOE has issued previous 
guidance on how it intends to respond to technical assistance requests 
related to implementation resources, such as building energy code 
compliance software. (79 FR 15112) DOE also recognizes that some States 
develop their own codes that are only loosely related to the national 
model codes, and DOE does not typically provide technical support for 
those codes. DOE does not prescribe how each State adopts and enforces 
its energy codes.
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    \4\ Available at http://www.energycodes.gov/adoption/states.
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Requests for Extensions
    Section 304(c) of ECPA requires that the Secretary permit an 
extension of the deadline for complying with the certification 
requirements described above, if a State can demonstrate that it has 
made a good faith effort to comply with such requirements, and that it 
has made significant progress toward meeting its certification 
obligations. (42 U.S.C. 6833(c)) Such demonstrations could include one 
or both of the following: (1) A substantive plan for response to the 
requirements stated in Section 304; or (2) a statement that the State 
has appropriated or requested funds (within State funding procedures) 
to implement a plan that would respond to the requirements of Section 
304 of ECPA. This list is not exhaustive.
    Requests are to be sent to the address provided in the ADDRESSES 
section, or may be submitted to [email protected].

     Signed in Washington, DC, on November 20, 2019.
Alexander N. Fitzsimmons,
Acting Deputy Assistant Secretary for Energy Efficiency, Office of 
Energy Efficiency and Renewable Energy.
[FR Doc. 2019-26550 Filed 12-9-19; 8:45 am]
 BILLING CODE 6450-01-P