[Federal Register Volume 87, Number 65 (Tuesday, April 5, 2022)]
[Rules and Regulations]
[Pages 19595-19613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07138]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 87, No. 65 / Tuesday, April 5, 2022 / Rules
and Regulations
[[Page 19595]]
DEPARTMENT OF ENERGY
10 CFR Part 435
[EERE-2022-BT-STD-0013]
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 final rule updates the baseline
Federal residential standard to the International Code Council (ICC)
2021 International Energy Conservation Code (IECC).
DATES: This rule is effective June 6, 2022. The incorporation by
reference of certain material listed in this rule was approved by the
Director of the Federal Register as of June 6, 2022. The incorporation
by reference of other material 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 April 5, 2023, using the 2021 IECC as the baseline standard
for 10 CFR part 435.
ADDRESSES: The docket, which includes this Federal Register notice and
other supporting documents and materials, is available for review at
www.regulations.gov. All documents in the docket are listed in the
www.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 www.regulations.gov site
contains simple instructions on how to access all documents, including
public comments, in the docket.
A link to the docket web page can be found at www.energy.gov/eere/femp/notices-and-rules-related-federal-energy-management. This web page
will contain a link to the docket for this notice 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: Mr. 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].
Mr. Matthew Ring, U.S. Department of Energy, Office of the General
Counsel, Forrestal Building, GC-33, 1000 Independence Avenue SW,
Washington, DC 20585, (202) 586-2555, Email: [email protected].
SUPPLEMENTARY INFORMATION: DOE maintains previously-approved versions
and incorporates by reference the following standard into 10 CFR part
435:
ICC International Energy Conservation Code (IECC), Redline Version,
copyright 2021. (IECC 2021).
Copies of this standard is available from the International Code
Council, 4051 West Flossmoor Road, Country Club Hills, IL 60478, 1-800-
422-7233, www.iccsafe.org/.
For a further discussion of this standard see section VII.N of this
document.
Table of Contents
I. Summary
II. Introduction
III. Synopsis of the Final Rule
A. Synopsis of Changes to the IECC Between the 2015 and 2021
IECC
1. Description of Changes From 2015 IECC to 2018 IECC
2. Description of Changes From 2018 IECC to 2021 IECC
IV. Methodology, Analytical Results, and Conclusion
A. Cost-Effectiveness Analysis
B. Monetization of Emissions Reduction Benefits
1. Monetization of Greenhouse Gas Emissions
2. Monetization of Other Air Pollutants
C. Conclusion
V. Compliance Date
VI. Reference Resources
VII. Regulatory Analysis
A. Review Under Executive Order 12866, ``Regulatory Planning and
Review''
B. Review Under the 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
VIII. Congressional Notification
IX. Approval of the Office of the Secretary
I. Summary
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)) In this rulemaking, DOE is updating the
energy efficiency standards for new Federal low-rise residential
buildings to IECC 2021 from IECC 2015. Accordingly, DOE conducted a
cost-effectiveness analysis and determined that the 2021 IECC would be
cost-effective if applied to new Federal low-rise residential
buildings. DOE's assumptions and methodology for the cost-effectiveness
of this rule are based on the cost-effectiveness analysis of the 2021
IECC
[[Page 19596]]
performed by DOE's state building codes program, 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 2021 IECC for buildings for which design for
construction begins on or after one year following publication of this
final rule in the Federal Register. (42 U.S.C. 6834 (a)(3)(A))
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\1\ National Cost-Effectiveness of the Residential Provisions of
the 2018 IECC, Taylor, ZT. PNNL-28515, Pacific Northwest National
Laboratory, April 2021. www.energycodes.gov/sites/default/files/2021-07/2018IECC_CE_Residential.pdf.
National Cost-Effectiveness of the Residential Provisions of the
2021 IECC, Salcido, VR, Y Chen, Y Xie, and ZT Taylor. PNNL-31019,
Pacific Northwest National Laboratory, June 2021.
www.energycodes.gov/sites/default/files/2021-07/2021IECC_CostEffectiveness_Final_Residential.pdf.
Environmental Assessment for Final Rule, 10 CFR part 435,
`Energy Efficiency Standards for the Design and Construction of New
Federal Low-Rise Residential Buildings,' Baseline Standards Update.
The EA may be found in the docket for this rulemaking and at
www.energy.gov/nepa/doeea-2166-energy-efficiency-standards-new-federal-low-rise-residential-buildings-baseline.
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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 (LCC)
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 final rule, DOE revises the
latest baseline Federal building standard for 10 CFR part 435 from the
2015 IECC to the 2021 IECC. DOE notes that although ICC published an
update to the IECC in 2018, this rule updates 10 CFR part 435 to the
2021 IECC directly, without requiring agencies to comply with the 2018
IECC. DOE notes, however, that because development of the IECC is
incremental from version to version, the 2021 IECC does include all
content in the 2018 IECC that was not specifically removed or modified
during the development of the 2021 IECC.
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))
Section 306(b) of ECPA 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 must be designed to achieve the
baseline standards in the IECC 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 LCC effective.
(42 U.S.C. 6834 (a)(3)(A)) When it is not LCC effective to design new
Federal low-rise residential buildings to exceed IECC performance
levels by 30 percent, new Federal buildings must be designed to exceed
the IECC performance levels up to the percentage that is LCC effective,
but at minimum meets the performance levels of the IECC. (10 CFR
435.4(c)). These requirements do not extend to renovations or
modifications to existing buildings.
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
included in the 2021 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 2021 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 2021 version of the IECC would achieve greater
energy efficiency than the prior version (the 2018 version). (See 86 FR
40529 (July 28, 2021)) DOE also reviewed the 2018 version of the IECC
and determined that the 2018 version would achieve greater energy
efficiency than the prior version (the 2015 version currently
referenced in 10 CFR part 435). (See 82 FR 2867 (January 10, 2017))
Both these determinations were subject to notice and comment. See 86 FR
26710 (May 17, 2021) and 84 FR 18833 (May 2, 2019), respectively, for
the 2021 IECC and 2018 preliminary determinations. DOE found that the
2021 version of the IECC would save 8.79 percent more source energy
than the 2018 version of the IECC \2\ and that the 2018 version of the
IECC would save 1.91 percent more source energy than the 2015 version
of the IECC.\3\
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\2\ Final Determination Regarding Energy Efficiency Improvements
in the 2021 International Energy Conservation Code (IECC); Notice of
determination, 86 FR 40529 (July 28, 2021). www.regulations.gov/docket/EERE-2021-BT-DET-0010/document.
\3\ Final Determination Regarding Energy Efficiency Improvements
in the 2018 International Energy Conservation Code (IECC); Notice of
determination, 84 FR 67435 (December 10, 2019).
www.federalregister.gov/documents/2019/12/10/2019-26550/final-determination-regarding-energy-efficiency-improvements-in-the-2018-international-energy.
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In DOE's determinations 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 86 FR 40529 (July 28, 2021).
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
2021 IECC through its participation in the code
[[Page 19597]]
development process, DOE conducted an independent analysis of the cost-
effectiveness of the 2021 IECC compared to the 2018 IECC and 2015
IECC.\4\ The results of the analysis are discussed in section VII.A of
this document. DOE's assumptions and methodology for the cost-
effectiveness of this rule are based on DOE's cost-effectiveness
analysis of the 2018 and 2021 IECC, as well as DOE's EA for this
rulemaking.\5\
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\4\ National Cost-Effectiveness of the Residential Provisions of
the 2018 IECC, Taylor, ZT PNNL-28515, Pacific Northwest National
Laboratory, April 2021. www.energycodes.gov/sites/default/files/2021-07/2018IECC_CE_Residential.pdf.
National Cost-Effectiveness of the Residential Provisions of the
2021 IECC, Salcido, VR, Y Chen, Y Xie, and ZT Taylor. PNNL-31019,
Pacific Northwest National Laboratory, June 2021.
www.energycodes.gov/sites/default/files/2021-07/2021IECC_CostEffectiveness_Final_Residential.pdf.
\5\ 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 www.energy.gov/nepa/doeea-2166-energy-efficiency-standards-new-federal-low-rise-residential-buildings-baseline.
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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 2018 IECC \6\ and
2021 IECC,\7\ as compared to the predecessor version (the 2015 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 LCC effective, achieve savings of at least 30 percent
below the baseline standard.
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\6\ Final Determination Regarding Energy Efficiency Improvements
in the 2018 International Energy Conservation Code (IECC); Notice of
determination, 84 FR 67435 (December 10, 2019).
www.federalregister.gov/documents/2019/12/10/2019-26550/final-determination-regarding-energy-efficiency-improvements-in-the-2018-international-energy.
\7\ Final Determination Regarding Energy Efficiency Improvements
in the 2021 International Energy Conservation Code (IECC); Notice of
determination, 86 FR 40529 (July 28, 2021). www.regulations.gov/docket/EERE-2021-BT-DET-0010/document.
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A. Synopsis of Changes to the IECC Between the 2015 and 2021 IECC
The IECC is updated every three years by the International Code
Council (ICC). DOE, as part of its determination process, evaluates
each new version of the IECC for low-rise residential buildings. The
summaries in the following sections are taken directly from DOE's
determinations and supporting analyses for the 2018 IECC \8\ and 2021
IECC.\9\ Section III.A.1 of this document describes the changes between
the 2015 IECC and the 2018 IECC and section III.A.2 of this document
describes the changes between the 2018 IECC and the 2021 IECC.
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\8\ Final Determination Regarding Energy Efficiency Improvements
in the 2018 International Energy Conservation Code (IECC); Notice of
determination, 84 FR 67435 (December 10, 2019).
www.federalregister.gov/documents/2019/12/10/2019-26550/final-determination-regarding-energy-efficiency-improvements-in-the-2018-international-energy.
National Cost-Effectiveness of the Residential Provisions of the
2018 IECC, Taylor, ZT. PNNL-28515, Pacific Northwest National
Laboratory, April 2021. www.energycodes.gov/sites/default/files/2021-07/2018IECC_CE_Residential.pdf.
\9\ Final Determination Regarding Energy Efficiency Improvements
in the 2021 International Energy Conservation Code (IECC); Notice of
determination, 86 FR 40529 (July 28, 2021) www.regulations.gov/docket/EERE-2021-BT-DET-0010/document.
National Cost-Effectiveness of the Residential Provisions of the
2021 IECC, Salcido VR, Y Chen, Y Xie, and ZT Taylor, PNNL-31019,
Pacific Northwest National Laboratory, June 2021.
www.energycodes.gov/sites/default/files/2021-07/2021IECC_CostEffectiveness_Final_Residential.pdf.
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1. Description of Changes From 2015 IECC to 2018 IECC
In creating the 2018 IECC, ICC processed 47 approved code change
proposals to the 2015 IECC. A total of 14 of these changes were found
to have a direct impact on energy use and the other 33 changes were
administrative or had an impact on non-energy portions of the code. DOE
found that changes resulting in decreased energy use outweigh any
changes expected to result in increased energy use in residential
buildings. Of the 47 total changes, 11 were expected to decrease energy
use, 3 were expected to increase energy use, 30 were administrative,
and 3 were considered not energy related.
The 11 changes considered that are expected to decrease energy use
are the following:
(1) Requires R-5 insulation under the entire slab when the slab is
heated. This change will result in reduced heat loss in buildings with
heated slabs, thereby reducing energy use.
(2) Lowers fenestration U-factors in climate zones 3-8. This change
reduces heat loss and gain through doors and windows in six of the
eight IECC climate zones.
(3) Corrects an inconsistency in the steel framing R-value
equivalency table. This change effectively requires an additional R-1
continuous insulation if R-19 cavity insulation is used, resulting in
decreased energy use.
(4) Adds provisions for ducts buried in attic insulation. The
provisions added address buried ducts as an optional feature.
(5) Adds heat recovery ventilation (HRV)/energy recovery
ventilation (ERV)-specific fan-efficacy requirements. This change
replaces prior efficacy values for generic in-line fans that were
considered inappropriate when HRV/ERV systems are installed.
(6) Increases high-efficacy lighting requirements from 75 percent
to 90 percent of permanently installed lighting fixtures and eliminates
the option of calculating percentages based on lamp counts instead of
fixture counts. This change results in reduced energy use in lighting
and applies to all homes complying with the IECC.
(7) Updates equation for ventilation fan energy in the Standard
Reference Design of the simulated performance alternative compliance
path to reference prescriptive fan-efficacy requirements. The equation
in the prior code version used a term based on outdated fan efficacies.
This change reduces energy when compliance is demonstrated using the
performance path.
(8) Replaces definition of Energy Rating Index (ERI) with a
reference to ANSI/RESNET/ICC 301, except for Reference Home ventilation
rates, which are modified to be consistent with International
Residential Code (IRC) requirements. This change bases the ERI target
on the IRC's ventilation rates, which are lower than those in American
National Standards Institute (ANSI)/Residential Energy Services Network
(RESNET)/ICC 301. This reduces ventilation energy in homes meeting the
target in the ERI path.
(9) Improves mandatory envelope requirements in the ERI compliance
path for homes with onsite generation. This change strengthens
mandatory envelope efficiency requirements and prevents degrading
envelope efficiency in trade for onsite generation.
(10) Requires new heating, ventilating, and air-conditioning (HVAC)
systems in additions and alterations to comply with the same
requirements as systems in new homes. This change will improve
efficiency in some additions and alterations.
(11) Modifies and clarifies an exception to the pool cover
requirements. This change makes a modest increase to the level of site-
recovered energy required to qualify for the exception.
The three changes that are expected to increase energy use are as
follows:
(1) Exempts log homes designed in accordance with ICC-400 from the
thermal envelope requirements of the
[[Page 19598]]
IECC. This change results in an expected increase in energy use in log
homes since ICC-400 allows less efficient walls than the IECC.
(2) Allows buried ducts meeting specified insulation and air-
sealing criteria to be considered equivalent to ducts located entirely
within conditioned space in the simulated performance alternative
compliance path. This change increases heat gain/loss into attics
compared to ducts entirely within conditioned space.
(3) Raises (relaxes) ERI thresholds. This change allows higher
energy use in residences under the ERI compliance path.
The remaining 33 changes were considered administrative in nature
or were determined to not be energy related. These changes are
discussed in more detail in Table A.2 of Energy Savings Analysis: 2018
IECC for Residential Buildings.\10\
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\10\ www.energycodes.gov/sites/default/files/2021-07/EERE-2018-BT-DET-0014-0008.pdf.
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2. Description of Changes From 2018 IECC to 2021 IECC
In creating the 2021 IECC, ICC processed 119 approved code change
proposals to the 2018 IECC. A total of 35 of these changes were found
to have a direct impact on energy use and the other 79 changes were
administrative or had an impact on non-energy portions of the code. DOE
found that changes resulting in decreased energy use outweigh any
changes expected to result in increased energy use in residential
buildings. Of the 35 changes that were determined to directly impact
energy use, 29 were expected to decrease energy use and 6 were expected
to increase energy use.
The following 11 changes were determined to result in the bulk of
the energy savings associated with the 2021 IECC over the 2018 IECC:
(1) Increases lamp efficacy to 65 lumens per watt and luminaires
efficacy to 45 lumens per watt.
(2) Increases efficacy in the definition of high-efficacy lamps to
70 lumens per watt.
(3) Increases stringency of wood frame wall R-value requirements in
climate zones 4 and 5.
(4) Increases slab insulation R-value requirements and depth in
climate zones 3-5.
(5) Increases stringency for ceiling insulation in climate zones 2
and 3.
(6) Increases stringency for ceiling insulation in climate zones 4-
8 and adds exception for when there is not space for R-60 in the
ceiling.
(7) Increases stringency of fenestration U-factors in climate zones
3-4.
(8) Increases whole-house mechanical ventilation system fan
efficacy requirements for inline fans and bathroom/utility fans.
(9) Requires ventilation systems to include heat or energy recovery
in climate zones 7 and 8.
(10) Requires exterior lighting in R-2, R-3, and R-4 buildings to
meet Section C405.4 of IECC.
(11) Adds new section R408, ``Additional Efficiency Package
Options'' to reduce energy use by 5 percent regardless of the
compliance path chosen.
IV. Methodology, Analytical Results, and Conclusion
A. Cost-Effectiveness Analysis
DOE's assumptions and methodology for the cost-effectiveness of
this rule are based on the cost-effectiveness analysis of the 2018 IECC
\11\ and 2021 IECC performed by DOE's state building codes program,\12\
as well as DOE's EA for this rulemaking.\13\ The EA identified a rate
of new Federal residential construction of approximately 9.78 million
square feet per year. This equates to approximately 3,824 new single-
family units (9.60 million square feet) and 153 new low-rise multi-
family residential units (0.19 million square feet) assumed each year.
As described in the EA, this estimate is derived from consideration of
data from the Federal Real Property Profile Management System (FRPP MS)
extraction and Department of Defense estimates of privatized housing.
DOE's cost-effectiveness analysis of the 2018 IECC provides tables for
the first cost increase, the energy savings, and the LCCs associated
with the 2018 IECC versus the 2015 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
Table IV.1 through Table IV.9 in this preamble.
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\11\ DOE's cost-effectiveness report on the 2018 IECC is
``National Cost-Effectiveness of the Residential Provisions of the
2018 IECC'', PNNL-28515, Taylor, ZT, April 2021. Available at
www.energycodes.gov/sites/default/files/2021-07/2018IECC_CE_Residential.pdf.
\12\ DOE's cost-effectiveness report on the 2021 IECC is
``National Cost-Effectiveness of the Residential Provisions of the
2021 IECC'', PNNL-31019, Salcido et al, June 2021. Available at
www.energycodes.gov/sites/default/files/2021-07/2021IECC_CostEffectiveness_Final_Residential.pdf.
\13\ The EA (DOE/EA-2166) 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 www.energy.gov/nepa/doeea-2166-energy-efficiency-standards-new-federal-low-rise-residential-buildings-baseline.
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Table IV.1 lists the increased first costs associated with the 2018
IECC for a standard 2,376 square feet prototypical home and a standard
1,200 square feet prototypical apartment/condo building.\14\ \15\ Based
on historical data as described in the EA, DOE estimates that the
majority of Federal low-rise residential construction will be single-
family homes built by the Department of Defense (or their privatization
contractors), along with some single-family homes and Federal low-rise
multi-family buildings built by other agencies,\16\ so the results of
DOE's first cost analysis are shown in full. The
[[Page 19599]]
2018 IECC does increase the first cost of construction of new homes and
apartments/condos compared to the 2015 IECC in all climate zones in the
United States.
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\14\ A discussion of the DOE residential prototypes is found in
DOE's cost-effectiveness report, available at www.energycodes.gov/sites/default/files/2021-07/2021IECC_CostEffectiveness_Final_Residential.pdf.
\15\ Note that the values in Table VI.1 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for IECC 2018, which were in 2018$. This adjustment
was made using the GDP deflator value to correct for inflation
between 2018 and 2020. Organization for Economic Co-operation and
Development, GDP Implicit Price Deflator in United States, retrieved
from FRED, Federal Reserve Bank of St. Louis; fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17, 2021.
\16\ DOE's main source of Federal construction information, the
Federal Real Property Profile Management System (FRPP MS), lists
Family Housing and Barracks/Dormitories as separate categories. DOE
utilized the Federal Agency information in the FRPP MS to
disaggregate Federal Dormitories and Barracks to estimate new
construction of dormitories, which are predominantly residential in
nature, and training barracks, which include non-residential spaces.
Department of Defense agencies were assumed to construct training
barracks, while non-DoD agencies were assumed to construct
dormitories. DOE utilized Asset Height Range information in the FRPP
MS to distinguish between low-rise residential construction and
multi-family high-rise construction by including only buildings
estimated to be less than 30 feet in height. Once buildings to be
included had been identified, the FRPP MS data was then used to
estimate the square footage of buildings in the Federal Dormitories
and Barracks and Family Housing categories that are assumed to be
built under 10 CFR part 435 (the subject of this rulemaking) versus
those more likely to be built under 10 CFR part 433 (New Federal
Commercial and Multi-Family High-rise Residential). For Family
Housing, DOE also utilized the square foot information in the FRPP
MS to develop percentage weights for the Single-Family prototype
(less than 6,000 square feet) and Low-rise Multi-family Residential
(6,000 square feet and greater). The square foot demarcation was
determined using the BECP assumption of approximately 1,200 square
feet per multi-family housing unit, and an assumption that 5 or more
housing units would define a multi-family building. While Barracks
may be envisioned as 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,
classrooms, and physical training facilities and are therefore
designed by DOD using the Federal commercial and high-rise multi-
family requirements.
Table IV.1--Total Incremental Construction First Cost for 2018 IECC Compared to the 2015 IECC
[2020$]
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2,376 ft\2\ house 1,200 ft\2\ apartment/condo
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Climate zone Slab, unheated Slab, unheated
basement, or Heated basement, or Heated
crawlspace basement crawlspace basement
----------------------------------------------------------------------------------------------------------------
1........................................... $0 $0 $0 $0
2........................................... 0 0 0 0
3........................................... 72 108 56 74
4........................................... 72 108 56 74
5........................................... 48 72 37 49
6........................................... 48 72 37 49
7........................................... 48 72 37 49
8........................................... 48 72 37 49
National Average............................ 49 74 38 50
----------------------------------------------------------------------------------------------------------------
Table IV.2 lists the increased first costs associated with the 2021
IECC for a standard 2,376 square feet prototypical home and a standard
1,200 square feet prototypical apartment/condo building. The 2021 IECC
increases the first cost of construction of new homes and apartments/
condos compared to the 2018 IECC in all climate zones in the United
States.
Table IV.2--Total Incremental Construction First Cost * for 2021 IECC Compared to the 2018 IECC
[2020$]
----------------------------------------------------------------------------------------------------------------
Climate zone 2,376 ft\2\ house 1,200 ft\2\ apartment/condo
----------------------------------------------------------------------------------------------------------------
1.............................................................. $936 $933
2.............................................................. 1,530 1,146
3.............................................................. 1,859 1,192
4.............................................................. 3,687 1,533
5.............................................................. 3,569 1,487
6.............................................................. 1,477 1,102
7.............................................................. 2,980 2,603
8.............................................................. 2,982 2,603
National Average............................................... 2,372 1,316
----------------------------------------------------------------------------------------------------------------
* The 2021 Cost Effectiveness report provides total incremental construction cost increase with no distinction
made between the foundation type. In this particular transition from IECC 2018 to IECC 2021, the cost increase
is primarily due to additional insulation requirements, window improvements, efficiency option packages, and
heat recovery ventilation (only for climate zones 7 and 8).
Table IV.3 combines the incremental first costs associated with the
2018 and 2021 versions of the IECC. In addition to adjusting for
inflation (as was done for the values in Table IV.1), the 2018 IECC
analysis was adjusted to use the same underlying economic assumptions
as the 2021 IECC, including fuel prices, fuel price escalations, labor
and material costs, and sales tax rates.
Table IV.3--Total Incremental Construction First Cost for 2021 IECC Compared to the 2015 IECC
[2020$]
----------------------------------------------------------------------------------------------------------------
Climate zone 2,376 ft\2\ house 1,200 ft\2\ apartment/condo
----------------------------------------------------------------------------------------------------------------
1.............................................................. $936 $933
2.............................................................. 1,536 1,146
3.............................................................. 1,938 1,217
4.............................................................. 3,265 1,386
5.............................................................. 3,624 1,503
6.............................................................. 1,531 1,118
7.............................................................. 3,035 2,620
8.............................................................. 3,037 2,620
National Average............................................... 2,336 1,294
----------------------------------------------------------------------------------------------------------------
[[Page 19600]]
The United States Census Bureau tracks information on new home
sales in the United States. Based on available data, the median price
of a non-Federal single-family home in the United States in 2020 was
$336,990.\17\ The national average incremental cost increase of $2,336
represents approximately 0.7 percent of the median cost of a new home.
An estimated construction cost of $217 per square foot for new Federal
dormitories and barracks was obtained from RS Means (2020).\18\ This
would equate to approximately $260,400 per multi-family unit. The
national average incremental cost increase of $1,294 represents
approximately 0.5 percent of the approximate cost per multi-family
unit. Any increase in first cost would be accompanied by a reduction in
energy costs and an increase in LCC net savings.
---------------------------------------------------------------------------
\17\ See www.census.gov/construction/nrs/historical_data/index.html, Median and Average Sale Price of Houses Sold.
\18\ RS Means. 2020. RS Means Building Construction Cost Data,
89th Ed. Construction Publishers & Consultants. Norwell, MA.
---------------------------------------------------------------------------
The estimated first year energy cost savings associated with the
2018 IECC is shown in Table IV.4 and the estimated first year energy
cost savings associated with the 2021 IECC is show in Table IV.5.\19\
These tables are based on a combination of single-family homes and
apartments/condos as described in DOE's cost-effectiveness reports.
While the weighting of homes and apartments/condos may not be identical
in the private and Federal sectors, the trends are similar for both
single-family homes and apartments/condos. Both the 2018 IECC and 2021
IECC save a moderate amount of energy costs over the 2015 IECC in all
climate zones in the United States.
---------------------------------------------------------------------------
\19\ Note that the values in Table VI.4 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for IECC 2018, which were in 2018$. This adjustment
was made using the GDP deflator value to correct for inflation
between 2018 and 2020. Organization for Economic Co- operation and
Development, GDP Implicit Price Deflator in United States, retrieved
from FRED, Federal Reserve Bank of St. Louis; fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17, 2021.
Table IV.4--Average First Year Energy Cost Savings for the 2018 IECC
Compared to the 2015 IECC
[2020$]
------------------------------------------------------------------------
Average annual energy cost
Climate zone savings (2020$/dwelling-unit-
yr)
------------------------------------------------------------------------
1......................................... $15
2......................................... 15
3......................................... 25
4......................................... 29
5......................................... 28
6......................................... 30
7......................................... 36
8......................................... 48
National Average.......................... 25
------------------------------------------------------------------------
Table IV.5--Average First Year Energy Cost Savings for the 2021 IECC
Compared to the 2018 IECC
[2020$]
------------------------------------------------------------------------
Average annual energy cost
Climate zone savings (2020$/dwelling-unit-
yr)
------------------------------------------------------------------------
1......................................... $200
2......................................... 192
3......................................... 200
4......................................... 205
5......................................... 173
6......................................... 123
7......................................... 306
8......................................... 411
National Average.......................... 191
------------------------------------------------------------------------
Table IV.6 combines the average first year energy cost savings
associated with the 2018 and 2021 versions of the IECC. In addition to
adjusting for inflation (as was done for the values in Table IV.4), the
2018 IECC analysis was adjusted to use the same underlying economic
assumptions as the 2021 IECC, including fuel prices, fuel price
escalations, labor and material costs, and sales tax rates.
Table IV.6--Average First Year Energy Cost Savings for the 2015 IECC
Compared to the 2021 IECC
[2020$]
------------------------------------------------------------------------
Average annual energy cost
Climate zone savings (2020$/dwelling-unit-
yr)
------------------------------------------------------------------------
1......................................... $208
2......................................... 199
3......................................... 214
[[Page 19601]]
4......................................... 223
5......................................... 189
6......................................... 146
7......................................... 328
8......................................... 439
National Average.......................... 205
------------------------------------------------------------------------
The LCC impact of the 2018 IECC is shown in Table IV.7 and the LCC
impact of the 2021 IECC is shown in Table IV.8.\20\ Again, these values
represent the combination of single-family homes and apartments/condos,
but the trends are clear. Both the 2018 IECC and 2021 IECC have
moderate LCC net savings in all climate zones in the United States.
---------------------------------------------------------------------------
\20\ Note that the values in Table VI.7 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for IECC 2018, which were in 2018$. This adjustment
was made using the GDP deflator value to correct for inflation
between 2018 and 2020. Organization for Economic Co-operation and
Development, GDP Implicit Price Deflator in United States, retrieved
from FRED, Federal Reserve Bank of St. Louis; fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17, 2021.
Table IV.7--Total LCC Net Savings for the 2018 IECC Compared to the 2015
IECC
[2020$]
------------------------------------------------------------------------
Total LCC net savings (2020$/
Climate zone dwelling-unit)
------------------------------------------------------------------------
1......................................... $417
2......................................... 420
3......................................... 548
4......................................... 641
5......................................... 652
6......................................... 706
7......................................... 857
8......................................... 1,209
National Average.......................... 579
------------------------------------------------------------------------
Table IV.8--Total LCC Net Savings for the 2021 IECC Compared to the 2018
IECC
[2020$]
------------------------------------------------------------------------
Total LCC net savings (2020$/
Climate zone dwelling-unit)
------------------------------------------------------------------------
1......................................... $3,536
2......................................... 2,854
3......................................... 2,829
4......................................... 2,243
5......................................... 1,034
6......................................... 970
7......................................... 3,783
8......................................... 6,782
National Average.......................... 2,320
------------------------------------------------------------------------
Table IV.9 combines the total LCC net savings associated with the
2018 and 2021 versions of the IECC. In addition to adjusting for
inflation (as was done for the values in Table IV.7), the 2018 IECC
analysis was adjusted to use the same underlying economic assumptions
as the 2021 IECC, including fuel prices, fuel price escalations, labor
and material costs, and sales tax rates.
Table IV.9--Total LCC Net Savings for the 2021 IECC Compared to the 2015
IECC
[2020$]
------------------------------------------------------------------------
Total LCC net savings (2020$/
Climate zone dwelling-unit)
------------------------------------------------------------------------
1......................................... $3,946
2......................................... 3,241
3......................................... 3,354
[[Page 19602]]
4......................................... 2,890
5......................................... 1,639
6......................................... 1,716
7......................................... 4,643
8......................................... 7,924
National Average.......................... 2,860
------------------------------------------------------------------------
By multiplying the estimated 3,977 units of new low-rise Federal
construction per year by the national average values in Table IV.3,
Table IV.6, and Table IV.9, DOE estimated that the total incremental
first cost estimate for Federal buildings is an increase of $9.1
million per year, that the total first year energy cost estimate is a
savings of $0.8 million per year, and that the annual LCC net savings
for the entire Federal low-rise residential buildings sector are
estimated to be $11.4 million per year.
DOE also conducted a net benefits and costs analysis using a 30-
year analysis period and an assumed building lifetime of 30 years. The
building lifetime assumption was made to correspond with availability
of underlying data from the cost-effectiveness analysis conducted by
DOE's State building energy codes program.
DOE calculated the net present value (NPV) of the change in
equipment cost and reduced operating cost associated with the
difference between the IECC 2015 and the IECC 2021. The NPV is the
value in the present of a time-series of costs and savings, equal to
the present value of savings in operating cost minus the present value
of the increased total equipment cost to consumers.
DOE determined the total increased equipment cost for each year of
the analysis period (2022-2051) using the incremental construction cost
described previously. DOE determined the present value of operating
cost savings for each year from the beginning of the analysis period to
the year when all Federal buildings constructed by 2051 have been
retired, assuming a 30-year lifetime of the building.
The average annual operating cost includes the costs for energy,
repair or replacement of building components (e.g., heating and cooling
equipment, lighting, and envelope measures), and maintenance of the
building. DOE determined the per-unit annual savings in operating cost
based on the savings in energy costs plus replacement and maintenance
cost savings, which were calculated in the underlying cost-
effectiveness analysis by DOE's State building energy codes program.
While DOE used the methodology and prices described previously to
calculate first year energy cost savings and LCC net savings, for the
NPV calculations, DOE determined the per-unit annual savings in
operating cost by multiplying the per square foot annual electricity,
natural gas, and fuel oil savings in energy consumption by the
appropriate residential energy price from EIA's AEO2021.\21\ DOE
forecasted energy prices based on projected average annual price
changes in EIA's AEO2021 to develop the operating cost savings through
the analysis period.
---------------------------------------------------------------------------
\21\ DOE--U.S. Department of Energy. 2021. Annual Energy Outlook
2021 with Projections to 2050. Washington, DC. Available at
www.eia.gov/outlooks/aeo/.
---------------------------------------------------------------------------
DOE uses national discount rates to calculate national NPV. DOE
estimated NPV using both a 3-percent and a 7-percent real discount
rate, in accordance with the Office of Management and Budget's guidance
to Federal agencies on the development of regulatory analysis,
particularly section E therein: Identifying and Measuring Benefits and
Costs.\22\ The NPV is the sum over time of the discounted net savings.
---------------------------------------------------------------------------
\22\ Office of Management and Budget. OMB Circular A-4,
Regulatory Analysis. 2003. OMB: Washington, DC. September 17, 2003.
www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf.
---------------------------------------------------------------------------
The present value of increased equipment costs is the annual total
cost increase in each year (the difference between the IECC 2021 and
the IECC 2015), discounted to the present, and summed throughout the
analysis period (2022 through 2051). Because new construction is held
constant through the analysis period, the installed cost is constant.
The present value of savings in operating cost is the annual
savings in operating cost (the difference between the IECC 2021 and the
IECC 2015), discounted to the present and summed through the analysis
period (2022 through 2051). Savings are decreases in operating cost
associated with the higher energy efficiency associated with buildings
designed to the IECC 2021 compared to the IECC 2015. Total annual
savings in operating cost are the savings per square foot multiplied by
the number of square feet that survive in a particular year through the
lifetime of the buildings constructed in the last year of the analysis
period.
B. Monetization of Emissions Reduction Benefits
As part of the development of this rule, for the purpose of
complying with the requirements of Executive Order 12866, DOE
considered the estimated monetary benefits from the reduced emissions
of CO2, CH4, N2O, NOX, and
SO2 that are expected to result from this rule. In order to
make this calculation analogous to the calculation of the NPV of
consumer benefit, DOE considered the reduced emissions expected to
result over the lifetime of buildings constructed in the analysis
period. This section summarizes the basis for the values used for
monetizing the emissions benefits and presents the values considered in
this rule.
On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-
30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of
the Fifth Circuit's order, the preliminary injunction is no longer in
effect, pending resolution of the federal government's appeal of that
injunction or a further court order. Among other things, the
preliminary injunction enjoined the defendants in that case from
``adopting, employing, treating as binding, or relying upon'' the
interim estimates of the social cost of greenhouse gases--which were
issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits of
reducing greenhouse gas emissions. In the absence of further
intervening court orders, DOE will revert to its approach prior to the
[[Page 19603]]
injunction and present monetized benefits where appropriate and
permissible under law.
1. Monetization of Greenhouse Gas Emissions
For the purpose of complying with the requirements of Executive
Order 12866, DOE estimates the monetized benefits of the reductions in
emissions of CO2, CH4, and N2O by
using a measure of the social cost (``SC'') of each pollutant (e.g.,
SC-GHGs). These estimates represent the monetary value of the net harm
to society associated with a marginal increase in emissions of these
pollutants in a given year, or the benefit of avoiding that increase.
These estimates are intended to include (but are not limited to)
climate-change-related changes in net agricultural productivity, human
health, property damages from increased flood risk, disruption of
energy systems, risk of conflict, environmental migration, and the
value of ecosystem services. DOE exercises its own judgment in
presenting monetized climate benefits as recommended by applicable
executive orders and guidance, and DOE would reach the same conclusion
presented in this notice in the absence of the social cost of
greenhouse gases, including the February 2021 Interim Estimates
presented by the Interagency Working Group on the Social Cost of
Greenhouse Gases. DOE exercises its own judgment in presenting
monetized climate benefits as recommended by applicable executive
orders, and DOE would reach the same conclusion presented in this
notice in the absence of the social cost of greenhouse gases, including
the February 2021 Interim Estimates presented by the Interagency
Working Group on the Social Cost of Greenhouse Gases.
DOE estimated the global social benefits of CO2,
CH4, and N2O reductions (i.e., SC-GHGs) using the
estimates presented in the Technical Support Document: Social Cost of
Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive
Order 13990 published in February 2021 by the Interagency Working Group
on the Social Cost of Greenhouse Gases (IWG) (IWG, 2021). The SC-GHGs
is the monetary value of the net harm to society associated with a
marginal increase in emissions in a given year, or the benefit of
avoiding that increase. In principle, SC-GHGs includes the value of all
climate change impacts, including (but not limited to) changes in net
agricultural productivity, human health effects, property damage from
increased flood risk and natural disasters, disruption of energy
systems, risk of conflict, environmental migration, and the value of
ecosystem services. The SC-GHGs therefore, reflects the societal value
of reducing emissions of the gas in question by one metric ton. The SC-
GHGs is the theoretically appropriate value to use in conducting
benefit-cost analyses of policies that affect CO2,
N2O and CH4 emissions. As a member of the IWG
involved in the development of the February 2021 SC-GHG TSD), the DOE
agrees that the interim SC-GHG estimates represent the most appropriate
estimate of the SC-GHG until revised estimates have been developed
reflecting the latest, peer-reviewed science.
The SC-GHGs estimates presented here were developed over many
years, using transparent process, peer-reviewed methodologies, the best
science available at the time of that process, and with input from the
public. Specifically, in 2009, an interagency working group (IWG) that
included the DOE and other executive branch agencies and offices was
established to ensure that agencies were using the best available
science and to promote consistency in the social cost of carbon (SC-
CO2) values used across agencies. The IWG published SC-
CO2 estimates in 2010 that were developed from an ensemble
of three widely cited integrated assessment models (IAMs) that estimate
global climate damages using highly aggregated representations of
climate processes and the global economy combined into a single
modeling framework. The three IAMs were run using a common set of input
assumptions in each model for future population, economic, and
CO2 emissions growth, as well as equilibrium climate
sensitivity (ECS)--a measure of the globally averaged temperature
response to increased atmospheric CO\2\ concentrations. These estimates
were updated in 2013 based on new versions of each IAM. In August 2016
the IWG published estimates of the social cost of methane (SC-
CH4) and nitrous oxide (SC-N2O) using methodologies that are
consistent with the methodology underlying the SC-CO2
estimates. The modeling approach that extends the IWG SC-CO2
methodology to non-CO2 GHGs has undergone multiple stages of
peer review. The SC-CH4 and SC-N2O estimates were
developed by Marten et al. (2015) and underwent a standard double-blind
peer review process prior to journal publication. In 2015, as part of
the response to public comments received to a 2013 solicitation for
comments on the SC-CO2 estimates, the IWG announced a
National Academies of Sciences, Engineering, and Medicine review of the
SC-CO2 estimates to offer advice on how to approach future
updates to ensure that the estimates continue to reflect the best
available science and methodologies. In January 2017, the National
Academies released their final report, Valuing Climate Damages:
Updating Estimation of the Social Cost of Carbon Dioxide, and
recommended specific criteria for future updates to the SC-
CO2 estimates, a modeling framework to satisfy the specified
criteria, and both near-term updates and longer-term research needs
pertaining to various components of the estimation process (National
Academies, 2017). Shortly thereafter, in March 2017, President Trump
issued Executive Order 13783, which disbanded the IWG, withdrew the
previous TSDs, and directed agencies to ensure SC-CO2
estimates used in regulatory analyses are consistent with the guidance
contained in OMB's Circular A-4, ``including with respect to the
consideration of domestic versus international impacts and the
consideration of appropriate discount rates'' (E.O. 13783, Section
5(c)).
On January 20, 2021, President Biden issued Executive Order 13990,
which re-established the IWG and directed it to ensure that the U.S.
Government's estimates of the social cost of carbon and other
greenhouse gases reflect the best available science and the
recommendations of the National Academies (2017). The IWG was tasked
with first reviewing the SC-GHG estimates currently used in Federal
analyses and publishing interim estimates within 30 days of the E.O.
that reflect the full impact of GHG emissions, including by taking
global damages into account. The interim SC-GHG estimates published in
February 2021, specifically the SC-CH4 estimates, are used
here to estimate the climate benefits for this final rule. The E.O.
instructs the IWG to undertake a fuller update of the SC-GHG estimates
by January 2022 that takes into consideration the advice of the
National Academies (2017) and other recent scientific literature.
The February 2021 SC-GHG TSD provides a complete discussion of the
IWG's initial review conducted under E.O. 13990. In particular, the IWG
found that the SC-GHG estimates used under E.O. 13783 fail to reflect
the full impact of GHG emissions in multiple ways. First, the IWG found
that a global perspective is essential for SC-GHG estimates because it
fully captures climate impacts that affect the United States and which
have been omitted from prior U.S.-specific estimates due to
[[Page 19604]]
methodological constraints. Examples of omitted effects include direct
effects on U.S. citizens, assets, and investments located abroad,
supply chains, and tourism, and spillover pathways such as economic and
political destabilization and global migration. In addition, assessing
the benefits of U.S. GHG mitigation activities requires consideration
of how those actions may affect mitigation activities by other
countries, as those international mitigation actions will provide a
benefit to U.S. citizens and residents by mitigating climate impacts
that affect U.S. citizens and residents. If the United States does not
consider impacts on other countries, it is difficult to convince other
countries to consider the impacts of their emissions on the United
States. As a member of the IWG involved in the development of the
February 2021 SC-GHG TSD, DOE agrees with this assessment and,
therefore, in this final rule DOE centers attention on a global measure
of SC-CH4. This approach is the same as that taken in DOE regulatory
analyses from 2012 through 2016. Prior to that, in 2008 DOE presented
Social Cost of Carbon (SCC) estimates based on values the
Intergovernmental Panel on Climate Change (IPCC) identified in
literature at that time. As noted in the February 2021 SC-GHG TSD, the
IWG will continue to review developments in the literature, including
more robust methodologies for estimating a U.S.-specific SC-GHG value,
and explore ways to better inform the public of the full range of
carbon impacts. As a member of the IWG, DOE will continue to follow
developments in the literature pertaining to this issue.
Second, the IWG found that the use of the social rate of return on
capital (7 percent under current OMB Circular A-4 guidance) to discount
the future benefits of reducing GHG emissions inappropriately
underestimates the impacts of climate change for the purposes of
estimating the SC-GHG. Consistent with the findings of the National
Academies (2017) and the economic literature, the IWG continued to
conclude that the consumption rate of interest is the theoretically
appropriate discount rate in an intergenerational context (IWG 2010,
2013, 2016a, 2016b), and recommended that discount rate uncertainty and
relevant aspects of intergenerational ethical considerations be
accounted for in selecting future discount rates. As a member of the
IWG involved in the development of the February 2021 SC-GHG TSD, DOE
agrees with this assessment and will continue to follow developments in
the literature pertaining to this issue.
While the IWG works to assess how best to incorporate the latest,
peer reviewed science to develop an updated set of SC-GHG estimates, it
set the interim estimates to be the most recent estimates developed by
the IWG prior to the group being disbanded in 2017. The estimates rely
on the same models and harmonized inputs and are calculated using a
range of discount rates. As explained in the February 2021 SC-GHG TSD,
the IWG has recommended that agencies to revert to the same set of four
values drawn from the SC-GHG distributions based on three discount
rates as were used in regulatory analyses between 2010 and 2016 and
subject to public comment. For each discount rate, the IWG combined the
distributions across models and socioeconomic emissions scenarios
(applying equal weight to each) and then selected a set of four values
recommended for use in benefit-cost analyses: An average value
resulting from the model runs for each of three discount rates (2.5
percent, 3 percent, and 5 percent), plus a fourth value, selected as
the 95th percentile of estimates based on a 3 percent discount rate.
The fourth value was included to provide information on potentially
higher-than-expected economic impacts from climate change. As explained
in the February 2021 SC-GHG TSD, and DOE agrees, this update reflects
the immediate need to have an operational SC-GHG for use in regulatory
benefit-cost analyses and other applications that was developed using a
transparent process, peer-reviewed methodologies, and the science
available at the time of that process. Those estimates were subject to
public comment in the context of dozens of proposed rulemakings as well
as in a dedicated public comment period in 2013.
DOE's derivations of the SC-GHGs (i.e., SC-CO2, SC-
N2O, and SC-CH4) values used for this rule are
discussed in the following sections, and the results of DOE's analyses
estimating the benefits of the reductions in emissions of these
pollutants are presented in section VII.A.
a. Social Cost of Carbon
The SC-CO2 values used for this rule were generated
using the values presented in the 2021 update from the IWG's February
2021 TSD. Table IV.10 shows the updated sets of SC-CO2
estimates from the latest interagency update in 5-year increments from
2020 to 2050. For purposes of capturing the uncertainties involved in
regulatory impact analysis, DOE has determined it is appropriate
include all four sets of SC-CO2 values, as recommended by
the IWG.\23\
---------------------------------------------------------------------------
\23\ For example, the February 2021 TSD discusses how the
understanding of discounting approaches suggests that discount rates
appropriate for intergenerational analysis in the context of climate
change may be lower than 3 percent.
Table IV.10--Annual SC-CO2 Values From 2021 Interagency Update, 2020-2050
[2020$ per Metric Ton CO2]
----------------------------------------------------------------------------------------------------------------
Discount rate
------------------------------------------------------------------
Year 3% 95th
5% average 3% average 2.5% average percentile
----------------------------------------------------------------------------------------------------------------
2020......................................... 14 51 76 152
2025......................................... 17 56 83 169
2030......................................... 19 62 89 187
2035......................................... 22 67 96 206
2040......................................... 25 73 103 225
2045......................................... 28 79 110 242
2050......................................... 32 85 116 260
----------------------------------------------------------------------------------------------------------------
[[Page 19605]]
In calculating the potential global benefits resulting from reduced
CO2 emissions, DOE used the values from the February 2021
TSD, adjusted to 2020$ using the implicit price deflator for gross
domestic product (GDP) from the Bureau of Economic Analysis. For each
of the four sets of SC-CO2 cases specified, the values for
emissions in 2020 were $14, $51, $76, and $152 per metric ton avoided
(values expressed in 2020$). DOE derived values from 2051 to 2070 based
on estimates published by EPA.\24\ These estimates are based on
methods, assumptions, and parameters identical to the 2020-2050
estimates published by the IWG. DOE derived values after 2070 based on
the trend in 2060-2070 in each of the four cases. DOE derived values
after 2050 using the approach described above for the SC-
CO2.
---------------------------------------------------------------------------
\24\ See EPA, Revised 2023 and Later Model Year Light-Duty
Vehicle GHG Emissions Standards: Regulatory Impact Analysis,
Washington, DC, December 2021. Available at: www.epa.gov/system/files/documents/2021-12/420r21028.pdf (last accessed January 13,
2022).
---------------------------------------------------------------------------
DOE multiplied the CO2 emissions reduction estimated for
each year by the SC-CO2 value for that year in each of the
four cases. To calculate a present value of the stream of monetary
values, DOE discounted the values in each of the four cases using the
specific discount rate that had been used to obtain the SC-
CO2 values in each case.
b. Social Cost of Methane and Nitrous Oxide
The SC-CH4 and SC-N2O values used for this
rule were generated using the values presented in the 2021 update from
the IWG.\25\ Table IV.11 shows the updated sets of SC-CH4
and SC-N2O estimates from the latest interagency update in
5-year increments from 2020 to 2050. To capture the uncertainties
involved in regulatory impact analysis, DOE has determined it is
appropriate to include all four sets of SC-CH4 and SC-
N2O values, as recommended by the IWG.
---------------------------------------------------------------------------
\25\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at: www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf
(last accessed March 17, 2021).
Table IV.11--Annual SC-CH4 and SC-N2O Values From 2021 Interagency Update, 2020-2050
[2020$ per metric ton]
--------------------------------------------------------------------------------------------------------------------------------------------------------
SC-CH4 discount rate and statistic SC-N2O discount rate and statistic
-------------------------------------------------------------------------------------
Year 5% 3% 2.5% 3% 95th 5% 3% 2.5% 3% 95th
average average average percentile average average average percentile
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020.............................................................. 670 1,500 2,000 3,900 5,800 18,000 27,000 48,000
2025.............................................................. 800 1,700 2,200 4,500 6,800 21,000 30,000 54,000
2030.............................................................. 940 2,000 2,500 5,200 7,800 23,000 33,000 60,000
2035.............................................................. 1,100 2,200 2,800 6,000 9,000 25,000 36,000 67,000
2040.............................................................. 1,300 2,500 3,100 6,700 10,000 28,000 39,000 74,000
2045.............................................................. 1,500 2,800 3,500 7,500 12,000 30,000 42,000 81,000
2050.............................................................. 1,700 3,100 3,800 8,200 13,000 33,000 45,000 88,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
DOE multiplied the CH4 and N2O emissions
reduction estimated for each year by the SC-CH4 and SC-
N2O estimates for that year in each of the cases. To
calculate a present value of the stream of monetary values, DOE
discounted the values in each of the cases using the specific discount
rate that had been used to obtain the SC-CH4 and SC-
N2O estimates in each case.
2. Monetization of Other Air Pollutants
DOE estimated the monetized value of NOX and
SO2 emissions reductions from electricity generation using
benefit per ton estimates based on air quality modeling and
concentration-response functions conducted for the Clean Power Plan
final rule. 84 FR 32520. DOE used EPA's values for NOX (as
PM2.5) and SO2 for 2020, 2025, and 2030
calculated with discount rates of 3 percent and 7 percent, and EPA's
values for ozone season NOX, which do not involve
discounting since the impacts are in the same year as emissions. DOE
used linear interpolation to define values for the years between 2020
and 2025 and between 2025 and 2030; for years beyond 2030 the values
are held constant.
DOE also estimated the monetized value of NOX and
SO2 emissions reductions from site use of natural gas in
buildings impacted by this rule using benefit-per-ton estimates from
the EPA's Benefits Mapping and Analysis Program. Although none of the
sectors covered by EPA refers specifically to residential and
commercial buildings, the sector called ``area sources'' would be a
reasonable proxy for residential and commercial buildings.\26\ The EPA
document provides high and low estimates for 2025 and 2030 at 3- and 7-
percent discount rates.\27\ DOE used the same linear interpolation and
extrapolation as it did with the values for electricity generation. DOE
primarily relied on the low estimates to be conservative.
---------------------------------------------------------------------------
\26\ ``Area sources'' represents all emission sources for which
states do not have exact (point) locations in their emissions
inventories. Because exact locations would tend to be associated
with larger sources, ``area sources'' would be fairly representative
of small dispersed sources like homes and businesses.
\27\ ``Area sources'' are a category in the 2018 document from
EPA, but are not used in the 2021 document cited above. See:
www.epa.gov/sites/default/files/2018-02/documents/sourceapportionmentbpttsd_2018.pdf.
---------------------------------------------------------------------------
DOE multiplied the emissions reduction (in tons) in each year by
the associated $/ton values, and then discounted each series using
discount rates of 3 percent and 7 percent as appropriate. On March 16,
2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the
federal government's emergency motion for stay pending appeal of the
February 11, 2022, preliminary injunction issued in Louisiana v. Biden,
No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's
order, the preliminary injunction is no longer in effect, pending
resolution of the federal government's appeal of that injunction or a
further court order. Among other things, the preliminary injunction
enjoined the defendants in that case from ``adopting, employing,
treating as binding, or relying upon'' the interim estimates of the
social cost of
[[Page 19606]]
greenhouse gases--which were issued by the Interagency Working Group on
the Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach prior
to the injunction and present monetized benefits where appropriate and
permissible under law.
C. Conclusion
This analysis results in a cumulative net present value (NPV) of
total benefits of the rule of $0.23 billion (at a 7-percent discount
rate) and $0.50 billion (at a 3-percent discount rate). This NPV
expresses the estimated total value of future operating cost savings
minus the estimated increased building costs for new Federal
construction for 2022-2051 with a 30-year lifetime and includes
monetized climate and health benefits (see Table IV.12). DOE estimates
climate benefits from a reduction in greenhouse gases (GHG) using four
different estimates of the social cost of CO2 (``SC-
CO2''), the social cost of methane (``SC-CH4''),
and the social cost of nitrous oxide (``SC-N2O''). Together
these represent the social cost of GHG (SC-GHG). DOE used interim SC-
GHG values developed by an Interagency Working Group on the Social Cost
of Greenhouse Gases (IWG).\28\ \29\ DOE does not have a single central
SC-GHG point estimate and it emphasizes the importance and value of
considering the benefits calculated using all four SC-GHG estimates.
DOE is currently only monetizing (for SO2 and
NOX) PM2.5 precursor health benefits and (for
NOX) ozone precursor health benefits, but will continue to
assess the ability to monetize other effects such as health benefits
from reductions in direct PM2.5 emissions.
---------------------------------------------------------------------------
\28\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. https://www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf.
\29\ On March 16, 2022, the Fifth Circuit Court of Appeals (No.
22-30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction
issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a
result of the Fifth Circuit's order, the preliminary injunction is
no longer in effect, pending resolution of the federal government's
appeal of that injunction or a further court order. Among other
things, the preliminary injunction enjoined the defendants in that
case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse
gases--which were issued by the Interagency Working Group on the
Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach
prior to the injunction and present monetized benefits where
appropriate and permissible under law.
---------------------------------------------------------------------------
The benefits and costs of the rulemaking can also be expressed in
terms of annualized values. The annualized net benefit is (1) the
annualized national economic value (expressed in 2020$) of the benefits
from building to IECC 2021, consisting primarily of operating cost
savings from using less energy, minus increases in building costs, and
(2) the annualized monetary value of the benefits of climate (GHG) and
health (NOX, and SO2) emission reductions. Table
IV.13 shows the annualized values for this rulemaking, expressed in
2020$. In the tables, total benefits for both the 3-percent and 7-
percent cases are presented using the average GHG social costs with 3-
percent discount rate, but the Department emphasizes the importance and
value of considering the benefits calculated using all four SC-GHG
cases.
Table IV.12--Summary of Monetized Economic Benefits and Costs (Billion
2020$)
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Billion $2020
------------------------------------------------------------------------
3% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings......................... 0.391
Climate Benefits *...................................... 0.114
Health Benefits **...................................... 0.177
---------------
Total Benefits [dagger]............................. 0.682
Consumer Incremental Product Costs [dagger][dagger]. 0.179
---------------
Net Benefits.................................... 0.503
------------------------------------------------------------------------
7% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings......................... 0.168
Climate Benefits *...................................... 0.114
Health Benefits **...................................... 0.066
---------------
Total Benefits [dagger]............................. 0.347
Consumer Incremental Product Costs [dagger][dagger]. 0.113
---------------
Net Benefits.................................... 0.234
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new low-rise residential buildings built in 2022-2051. These results
include benefits to consumers which accrue after 2051 from the
buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown, but
the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing PM2.5 and (for NOX) ozone
precursor health benefits, but will continue to assess the ability to
monetize other effects such as health benefits from reductions in
direct PM2.5 emissions. The health benefits are presented at real
discount rates of 3 and 7 percent. See IV.B of this document for more
details.
[[Page 19607]]
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as
installation costs.
Table IV.13--Annualized Monetized Benefits, Costs, and Net Benefits
(Million 2020$)
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Million 2020$/year
Category ---------------------------------------
3% discount rate 7% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings. 20.0 13.5
Climate Benefits *.............. 5.8 5.8
Health Benefits **.............. 9.0 5.3
---------------------------------------
Total Benefits [dagger]..... 34.8 18.8
Costs [dagger][dagger]...... 9.1 9.1
---------------------------------------
Net Benefits............ 25.7 15.5
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new low-rise residential buildings built in 2022-2051. These results
include benefits to consumers which accrue after 2051 from the
buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown, but
the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health
benefits, but will continue to assess the ability to monetize other
effects such as health benefits from reductions in direct PM2.5
emissions. The health benefits are presented at real discount rates of
3 and 7 percent. See section IV.B of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as
installation costs.
Accordingly, DOE has determined that the implementation of IECC
2021 for Federal low-rise residential buildings is cost-effective. DOE
is presenting monetized climate benefits in accordance with the
applicable Executive Orders and DOE would reach the same conclusion
presented in this notice in the absence of the social cost of
greenhouse gases, including the February 2021 Interim Estimates
presented by the Interagency Working Group on the Social Cost of
Greenhouse Gases.
V. 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 LCC 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 to minimize compliance costs to agencies,
which may have planned buildings in various stages of design, and
allows for design changes to more fully consider LCC effective measures
(as opposed to having to revise designs in development, which may make
incorporation of energy efficiency measures more difficult or
expensive).
VI. Reference Resources
DOE originally prepared this list of resources to help Federal
agencies achieve building energy efficiency levels of at least 30
percent below the 2009 IECC. DOE has reviewed these resources and
believes that they continue to be useful for helping agencies maximize
their energy efficiency levels. DOE 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, as well as
specifically for low-rise residential buildings. FEMP offers an online
search database of tools that can help agencies reduce energy use and
meet Federal laws and requirements. Tools include software,
calculators, data sets, and databases created by DOE and other Federal
organizations. This resource can be found at www.energy.gov/eere/femp/federal-energy-management-tools.
(1) Energy Efficient Products--U.S. DOE Federal Energy Management
Program and U.S. Environmental Protection Agency (EPA) ENERGY STAR
Program
www.energy.gov/eere/femp/energy-efficient-products-and-energy-saving-technologies
Federal agencies are required by EPAct 2005 and 10 CFR part 436 to
[[Page 19608]]
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 unless the agency can show that the use of such
equipment is not life-cycle cost-effective. 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 minimum manufacturing standards for
residential-sized appliances and equipment, and may be used to achieve
part of the savings required of Federal building designs. Agencies are
required to use equipment designated as high-efficiency by FEMP and/or
ENERGY STAR, credit may be taken for this equipment as part of the
Total Building Performance compliance path through the use of Section
R401.2.5 Part 2 of the 2021 IECC. Credit given in the Total Building
Performance compliance path will depend on whether the equipment
efficiency required for ENERGY STAR and FEMP-designated products meets
or exceeds the efficiency required for the 2021 IECC additional
efficiency packages. In some cases, the efficiency required in the 2021
IECC additional efficiency packages exceeds the efficiency of the
ENERGY STAR and FEMP-designated equipment, which implies that no credit
will be given in the Total Building Performance compliance path. The
FEMP websites, accessed through the previous links, are provided as
useful resources for achieving part of the energy savings required by
the rule.
(2) Life-Cycle Cost Analysis--U.S. DOE Federal Energy Management
Program
www.energy.gov/eere/femp/building-life-cycle-cost-programs
The LCC 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 LCC 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
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
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
www.phius.org/home-page
This website provides information on designing and building very
low energy homes.
(5) U.S. DOE Office of Energy Efficiency & Renewable Energy--
Residential Buildings Integration
www.energy.gov/eere/buildings/residential-buildings-integration
This website provides information on energy efficient home design
strategies and technologies to support energy efficiency in residences.
(6) 2020 National Green Building Standard, ICC 700--ICC and NAHB
https://shop.iccsafe.org/icc-700-2020-national-green-building-standardr.html
The National Green Building Standard ICC 700-2020 National Green
Building Standard[supreg] (NGBS) is an American National Standards
Institute (ANSI)-approved, residential construction standard for
voluntary, above-code building certification is a green building rating
system for homes approved by the American National Standards Institute.
This standard The NGBS standard provides requirements design and
verification direction for building high-efficiency and green homes and
multi-family buildings.
(7) The NGBS Green Promise
www.ngbs.com/the-ngbs-green-promise
The National Green Building Standard is a green building rating
system for homes approved by the American National Standards Institute.
(8) LEED Certification for Residential
www.usgbc.org/leed/rating-systems/residential
This certification system provides requirements for building high-
efficiency and green homes and multi-family buildings.
(9) Green Globes--The Green Building Initiative
www.thegbi.org/
This certification provides requirements for building high-
efficiency and green multi-family buildings.
(10) 2018 IECC--ICC
https://shop.iccsafe.org/codes/2018-international-codes-and-references/2018-international-energy-conservation-code.html \30\
---------------------------------------------------------------------------
\30\ A free read-only version of the 2018 IECC is available at
https://codes.iccsafe.org/content/IECC2018P4.
The interim energy efficiency standard for low-rise residential
buildings between the 2015 IECC and the 2021 IECC is the 2018 IECC.
(11) 2021 IECC--ICC
https://shop.iccsafe.org/codes/2021-international-codes-and-references/2021-international-energy-conservation-coder.html \31\
---------------------------------------------------------------------------
\31\ A free read-only version of the 2021 IECC is available at
https://codes.iccsafe.org/content/IECC2021P1.
The energy efficiency standard for low-rise residential buildings
is the 2021 IECC.
(12) Whole Building Design Guide--National Institute of Building
Sciences
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.
VII. 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 (OIRA) 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 the preamble, DOE complied with the statutory language by
analyzing the cost-effectiveness of the 2018 IECC and the 2021 IECC,
and through DOE's involvement in the ICC code development process.
[[Page 19609]]
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 2021 IECC and a building designed to
meet the 2015 IECC) for the Federal low-rise residential buildings
sector, as well as LCC net savings. Because this update incorporates
changes made in the 2018 and 2021 IECC codes, DOE has adjusted the IECC
2018 analyses to use the same underlying economic assumptions (e.g.,
fuel price escalations, labor rates, etc.) as the IECC 2021 analysis in
order to estimate the cumulative impact of the two code changes. First,
DOE estimated that the annual full fuel cycle national energy savings
would be 0.074 trillion Btu (associated with one year of Federal
construction), that the cumulative (over the 30-year analysis period)
full fuel cycle national energy savings would be 0.060 quadrillion Btu,
and that the cumulative (including building lifetime savings) full fuel
cycle national energy savings would be 0.063 quadrillion Btu. Based on
these energy savings and using the methodology described in section IV
of this document, DOE estimated the resulting incremental first cost,
first year energy cost savings, and annual LCC net savings. DOE
estimated that the total incremental first cost is an increase of $9.1
million per year, with an average first cost increase of $2,296 per
household. DOE estimated $11.3 million in annual LCC net savings for
the entire Federal low-rise residential buildings sector with an
average LCC net savings of $2,860 per household.\32\
---------------------------------------------------------------------------
\32\ DOE also prepared an EA for this rule that details the
environmental impacts, including emissions reductions, of the rule.
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 www.energy.gov/nepa/doeea-2166-energy-efficiency-standards-new-federal-low-rise-residential-buildings-baseline.
---------------------------------------------------------------------------
Table VII.1 shows the monetized economic benefits and costs
expected to result from this rulemaking. Using a 7-percent discount
rate for consumer benefits and costs and health benefits, and a 3-
percent discount rate case for GHG social (climate) costs, the
estimated cost of this rulemaking is $0.113 billion in increased
equipment costs, while the estimated benefits are $0.168 billion in
reduced equipment operating costs, $0.114 billion in climate benefits,
and $0.066 billion in health benefits. In this case, the net benefit
amounts to $0.234 billion. Using a 3-percent discount rate for all
benefits and costs, the estimated cost of this rulemaking is $0.179
billion in increased equipment costs, while the estimated benefits are
$0.391 billion in reduced equipment operating costs, $0.114 billion in
climate benefits, and $0.177 billion in health benefits. In this case,
the net benefit amounts to $0.503 billion.
Table VII.2 shows the annualized monetized economic benefits and
costs expected to result from this rulemaking. Using a 7-percent
discount rate for consumer benefits and costs and health benefits, and
a 3-percent discount rate case for GHG social (climate) costs, the
estimated cost of this rulemaking is $9.1 million per year in increased
equipment costs, while the estimated annual benefits are $13.5 million
in reduced equipment operating costs, $5.8 million in climate benefits,
and $5.3 million in health benefits. In this case, the net benefit
amounts to $15.5 million per year. Using a 3-percent discount rate for
all benefits and costs, the estimated cost of this rulemaking is $9.1
million per year in increased equipment costs, while the estimated
annual benefits are $20.0 million in reduced equipment operating costs,
$5.8 million in climate benefits, and $9.0 million in health benefits.
In this case, the net benefit amounts to $25.7 million per year.
Table VII.1--Summary of Monetized Economic Benefits and Costs (Billion
2020$)
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Billion $2020
------------------------------------------------------------------------
3% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings......................... 0.391
Climate Benefits *...................................... 0.114
Health Benefits **...................................... 0.177
---------------
Total Benefits [dagger]............................. 0.682
Consumer Incremental Product Costs [dagger][dagger]. 0.179
---------------
Net Benefits.................................... 0.503
------------------------------------------------------------------------
7% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings......................... 0.168
Climate Benefits *...................................... 0.114
Health Benefits **...................................... 0.066
---------------
Total Benefits [dagger]............................. 0.347
Consumer Incremental Product Costs [dagger][dagger]. 0.113
---------------
Net Benefits.................................... 0.234
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new commercial and multi-family high-rise buildings built in 2022-
2051. These results include benefits to consumers which accrue after
2051 from the buildings constructed in 2022-2051.
[[Page 19610]]
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown, but
the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health
benefits, but will continue to assess the ability to monetize other
effects such as health benefits from reductions in direct PM2.5
emissions. The health benefits are presented at real discount rates of
3 and 7 percent. See section IV.B of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law. [dagger] Costs include
incremental equipment costs as well as installation costs.
Table VII.2--Annualized Monetized Benefits, Costs, and Net Benefits
(Million 2020$)
[2022-2051 plus 30-Year Lifetime]
------------------------------------------------------------------------
Million 2020$/year
Category ---------------------------------------
3% Discount rate 7% Discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings. 20.0 13.5
Climate Benefits *.............. 5.8 5.8
Health Benefits **.............. 9.0 5.3
---------------------------------------
Total Benefits[dagger]...... 34.8 24.6
Costs[dagger][dagger]....... 9.1 9.1
---------------------------------------
Net Benefits............ 25.7 15.5
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new commercial and multi-family high-rise buildings built in 2022-
2051. These results include benefits to consumers which accrue after
2051 from the buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown, but
the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health
benefits, but will continue to assess the ability to monetize other
effects such as health benefits from reductions in direct PM2.5
emissions. The health benefits are presented at real discount rates of
3 and 7 percent. See section IV.B of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as
installation costs.
B. Review Under the Administrative Procedure Act
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. DOE has made its
procedures and policies available on the Office of General Counsel's
website: https://energy.gov/gc/office-general-counsel.
As noted above, 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. 5 U.S.C. 605(b).
D. Review Under the Paperwork Reduction Act of 1995
This rulemaking will impose no new information or record keeping
requirements. Accordingly, OMB clearance is not required under the
Paperwork Reduction Act. (44 U.S.C. 3501 et seq.)
[[Page 19611]]
E. Review Under the National Environmental Policy Act of 1969
DOE prepared an EA (DOE/EA-2166) entitled, ``Environmental
Assessment for Final Rule, 10 CFR part 435, `Energy Efficiency
Standards for New Federal Low-Rise Residential Buildings,' Baseline
Standards Update,'' \33\ 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).
---------------------------------------------------------------------------
\33\ The EA may be found in the docket for this rulemaking and
at www.energy.gov/nepa/doeea-2166-energy-efficiency-standards-new-federal-low-rise-residential-buildings-baseline.
---------------------------------------------------------------------------
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 consumption, either directly consumed on site or
indirectly when used to generate energy that is consumed 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 standards for Federal new low-rise
residential buildings to 2021 IECC with the ``no-action alternative''
of using the current Federal standards (the 2015 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 2021 IECC will use less energy than new
Federal buildings designed and constructed to the 2015 IECC because the
2021 IECC is more efficient than 2015 IECC. This decrease in energy
usage translates to reduced emissions of carbon dioxide
(CO2), nitrogen oxides (NOX), and mercury (Hg)
over the 30-year period examined in the EA. As reported in the EA,
cumulative emission reductions for 30 years of construction and
operation for Federal buildings built during that period (2022 through
2051) were estimated at up to 1.3 million metric tons of
CO2, up to 2.3 thousand tons of NOX, up to 0.002
tons of Hg, up to 10.8 thousand tons of CH4, up to 0.4
thousand tons of SO2, and up to 0.01 thousand tons of
N2O. In conducting the net benefits analysis, DOE also
calculated the energy savings and associated emissions corresponding to
the analysis period plus the lifetime of the building (30 years) to
capture the full benefits stream associated with Federal buildings
constructed from 2022 through 2051. For 30 years of construction and
operation including building lifetime, cumulative emission reductions
were estimated at up to 2.5 million metric tons of CO2, up
to 4.3 thousand tons of NOX, up to 0.004 tons of Hg, up to
20.8 thousand tons of CH4, up to 0.8 thousand tons of
SO2, and up to 0.02 thousand tons of N2O.
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 if 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 as well as
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
[[Page 19612]]
12820) (also available at https://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''
DOE 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 that 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
OIRA, 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 action and their expected
benefits on energy supply, distribution, and use. DOE's Energy
Information Administration (EIA) estimates single-family and multi-
family households in the residential sector will be approximately 120
million households averaging 1,800 square feet in the United States in
2022, with a growth rate of roughly 0.7 percent per year, which is
equivalent to about 832,000 new households or approximately 1.5 billion
square feet per year.\34\ This rule is expected to incrementally reduce
the energy usage of approximately 9.78 million square feet \35\ of
Federal low-rise residential construction annually. Thus, the rule
represents approximately 0.65 percent of the expected annual U.S.
construction in 2022, 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.
---------------------------------------------------------------------------
\34\ See Table A4 of the 2021 Annual Energy Outlook at
www.eia.gov/outlooks/aeo/excel/aeotab_4.xlsx.
\35\ See EA for this rule for the origin of the federal
residential construction estimate.
---------------------------------------------------------------------------
M. Review Under Section 32 of the Federal Energy Administration Act of
1974
Under section 301 of the DOE 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
2021 IECC, International Energy Conservation Code, 2020, International
Code Council, ISBN 978-1-60983-749-5.
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 2018 IECC was published in 2017 and the 2021 IECC was
published in 2020. 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 final rule, DOE incorporates by reference the ICC 2021
International Energy Conservation Code, (IECC), Redline Version,
copyright 2021. 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,
www.iccsafe.org.
The Director of the Federal Register previously approved ICC
International Energy Conservation Code (IECC) 2005, 2009, and 2015
Editions, for incorporation by reference in 10 CFR part 435.
[[Page 19613]]
VIII. 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).
IX. 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.
Signing Authority
This document of the DOE was signed on March 28, 2022, by Kelly J.
Speakes-Backman, Principal Deputy Assistant Secretary for Energy
Efficiency and Renewable Energy, pursuant to delegated authority from
the Secretary of Energy. That document, with the original signature and
date, is maintained by DOE. For administrative purposes only, and in
compliance with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on March 31, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of 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. Removing in the definition for ``IECC Baseline Building 2004'', the
text ``ICC International Energy Conservation Code, 2004 Supplement
Edition, January 2005'' and adding, in its place, the text ``ICC IECC
2004'';
0
b. Removing in the definition for ``IECC Baseline Building 2009'', the
text ``ICC International Energy Conservation Code, 2009 Edition,
January 2009'' and adding, in its place, the text ``ICC IECC 2009'';
and
0
c. Adding in alphanumerical order a definition for ``IECC Baseline
Building 2021''.
The addition reads as follows:
Sec. 435.2 Definitions.
* * * * *
IECC Baseline Building 2021 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 2021
(incorporated by reference, see Sec. 435.3).
* * * * *
0
3. Section 435.3 is amended by revising paragraph (a) and adding
paragraph (b)(4) to read as follows:
Sec. 435.3 Materials incorporated by reference.
(a) Certain material is incorporated by reference into this subpart
with the approval of the Director of the Federal Register in accordance
with 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other
than that specified in this section, DOE must publish a document in the
Federal Register and the material must be available to the public. All
approved material is available for inspection at DOE, and at the
National Archives and Records Administration (NARA). Contact DOE at:
The U.S. Department of Energy, Office of Energy Efficiency and
Renewable Energy, Building Technologies Program, Sixth Floor, 950
L'Enfant Plaza SW, Washington, DC 20024, (202) 586-9127,
[email protected], https://www.energy.gov/eere/buildings/building-technologies-office. For information on the availability of this
material at NARA, email: [email protected], or go to:
www.archives.gov/federal-register/cfr/ibr-locations.html. The material
may be obtained from the sources in the following paragraphs of this
section.
(b) * * *
(4) ICC 2021 International Energy Conservation Code (IECC), Redline
Version, Copyright 2021, (``IECC 2021''), IBR approved for Sec. Sec.
435.2, 435.4, and 435.5.
0
4. Section 435.4 is amended by:
0
a. Revising paragraph (a)(3) introductory text;
0
b. Removing in paragraph (a)(3)(i), the text ``2015 IECC'' and adding
in its place the text ``IECC 2015''; and
0
c. Adding paragraph (a)(4).
The revision and addition reads as follows:
Sec. 435.4 Energy efficiency performance standard.
(a) * * *
(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, but before April 5, 2023 to:
* * * * *
(4) All Federal agencies shall design new Federal buildings that
are low-rise residential buildings, for which design for construction
began on or after April 5, 2023 to:
(i) Meet the IECC 2021, (incorporated by reference, see Sec.
435.3); 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
2021.
* * * * *
0
5. Section 435.5 is amended by revising paragraph (c) and adding
paragraph (d) to read as follows:
Sec. 435.5 Performance level determination.
* * * * *
(c) For new Federal buildings for which design for construction
began on or after January 10, 2018 but before April 5, 2023 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).
(d) For new Federal buildings for which design for construction
began on or after April 5, 2023 each Federal agency shall determine
energy consumption levels for both the IECC Baseline Building 2021 and
proposed building by using the Simulated Performance Alternative found
in section R405 of the IECC 2021 (incorporated by reference, see Sec.
435.3).
[FR Doc. 2022-07138 Filed 4-4-22; 8:45 am]
BILLING CODE 6450-01-P