Analysis of Building Energy Code Provisions in 2009 House and Senate Energy Bills

Senate Energy Committee

House Energy and Commerce Committee

Section 241 of Building Efficiency title as reported from Senate ENR Committee

Section 201 of American Clean Energy and Security Act of 2009 as passed by the House of Representatives

Savings Targets

Energy savings targets in the bill
(also see chart of Savings Targets below)

Department of Energy (DOE) is to support updates to national model building energy codes at least every three years to achieve:

• 30% savings compared to 2006 IECC and ASHRAE Standard 90.1-2004 in model codes released during or after 2010 (would apply to 2012 IECC and 90.1-2010),
• 50% savings in codes released during or after 2016 (would apply to 2018 IECC and 90.1-2016). [subsection (a)(1)(A)]

‘National building code energy efficiency targets’:

• 30% savings compared to 2006 IECC for residential and ASHRAE Standard 90.1-2004 for commercial buildings on date of enactment,
• 50% savings for residential on 1/1/14 and commercial on 1/1/15,
• 5% additional reduction every three years thereafter (e.g. 55% savings 1/1/17 and 1/1/18) until 2029 for residential and 2030 for commercial. [(a)(1)&(6), (b)(1)]

End goal

DOE targets are to be on a path to achieving net-zero-energy buildings. [(a)(1)(B)(i)]

Achieve zero-net-energy commercial buildings consistent with Commercial Buildings Initiative (2030 for new buildings). [(a)(5)]

DOE setting of targets

DOE is to set targets three years in advance, based on IECC & ASHRAE cycles, at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective. DOE may set a different target year if the 50% target cannot be met in 2016. [(a)(1)(B)]

DOE, by rule and in consultation with NIST, may set higher targets if life cycle cost-justified and technically feasible, and may set lower targets if they are the maximum levels that can meet these criteria. DOE also may set targets starting in 2033 with those criteria. [(a)(3),(4)&(7)]

Development of Codes

DOE assistance to code development organizations

DOE is to provide technical assistance to model code-setting and standard development organizations in evaluating proposals, building energy analysis and design tools, building demonstrations, and design assistance and training. [(a)(1)(C)]

DOE is to assist ‘recognized consensus-based code development organizations’ to develop and, if adopted as the national code, disseminate codes.

If their code meets a target, DOE is to support making the code available on the internet or distributing the code to all State, tribal, and local code agencies, may provide grants and support for further code development, and may contract with this or other organizations to provide training on implementation.

If DOE uses such a code in establishing its own code, DOE is to negotiate and provide appropriate compensation. [(b)(3) & (4)]

DOE proposed changes to and recognition of model code or standard

DOE is to determine (preliminary within 90 days and final within 1 year) whether any revisions to IECC or ASHRAE 90.1 improve energy efficiency and meet the targets. If not, DOE would (within the year) recommend changes to meet the target to the code developers. [(a)(2)(A) & (a)(2)(B)(i)]

DOE is to review codes published or under review by ‘recognized developer of national energy codes and standards’ 6 months before the target date and propose improvements to meet the target. If DOE finds by the target date that such a code meets the target, that code shall be the national energy efficiency building code. [(a)(2) & (b)(2)]

DOE establishment of code (if needed)

If ICC or ASHRAE does not incorporate the changes within 180 additional days, DOE is to establish a modified code or standard that meets the targets, with the maximum energy savings that are technologically feasible and life-cycle cost effective, and based on the IECC or ASHRAE 90.1.

If IECC or ASHRAE 90.1 are not updated within three years, DOE is to establish a modified code or standard that meets the targets. [(a)(2)(B)(ii-iv) & (a)(2)(C) – (D)]

If DOE does not recognize an outside code, within 1 year after the target date (15 months for the first target date) DOE is to adopt a code by rule that meets or exceeds the target, and is at the maximum level that is life cycle cost-justified and technically feasible. DOE shall consider IECC, ASHRAE, RESNET, Building America, Energy Star, and other information, and cool roofs, and shall consult with NIST.

Savings calculation shall take into account typical lifetimes and use NIST life cycle cost methods. [(b)(1)(c) & (2)]

Alternate code

States may also adopt California’s Title 24-2009 within 27 months of enactment to comply with the 30% savings requirement for residential buildings. [(c )(3)]

Voluntary advanced codes

DOE shall support the development of voluntary advanced codes achieving savings 30% beyond national model building codes and standards, updated every three years, preferably developed by ICC and ASHRAE. [(c)(4)(D)]

Code Adoption

State adoption

Within 2 years of enactment states are to certify whether they have updated their codes, and that the codes meet the 2009 IECC for residential and ASHRAE 90.1-2007 for commercial buildings or achieve equivalent or greater energy savings.

Within 2 years of a determination by DOE that an update to a model code meets the target, states are to certify whether they have updated their codes, and that the codes meet the revised model or achieve equivalent or greater energy savings.

If DOE does not make a positive determination, states are to certify within 2 years whether they have updated their codes to meet or exceed any provisions of the revised model they find to improve energy efficiency in buildings. [(b)]

Within 1 year of establishment or revision of a national energy efficiency building code, states are to either adopt the national code; review and update their building energy codes to meet or exceed the federal code’s target to achieve equivalent or greater energy savings; or, if local governments establish codes, document that localities representing at least 80% of a state’s urban population have adopted such codes or equivalent ones.

States are to certify to DOE within the year that codes throughout the state meet the targets, and DOE is to review within 90 days. [(c)(1) & (2)]

Federal adoption

If DOE has not certified a state’s or a locality’s code within 18 months of the federal code’s establishment (or not earlier than 1 year from when the legislature first meets for states with legislative adoption), the national code becomes the code for that jurisdiction.

In the case of a conflict between national and other energy codes, the national code shall apply. Should the national code conflict with other codes (such as fire, safety, or accessibility), the DOE shall make a determination. [(d)(1) – (3)]

Implementation & Compliance

State compliance targets and requirements

Within 3 years of certification of a state code, each state must certify whether or not either:
(1) achieved compliance:

• at least 90% of new and renovated building space substantially meets code requirements, or
• excess energy use for non-compliant buildings is not greater than 5% of energy use of all covered buildings

(these targets may be reduced for renovations), or
(2) progress toward compliance: only within 8 years of adequate funding ($50 million in total federal codes funding in a year):

• the state is implementing a plan to achieve compliance within 8 years,
• after 1 year has demonstrated progress, and
• after 5 years has achieved compliance in 80% of building space or no more than 10% excess energy.

The certification must document the rate of compliance based on independent inspections of a random sample of buildings or an alternative method. A certification under (2) must be repeated each year. [(c)(1)-(3) & (c)(4)(A)-(B)]

States or local governments are to implement and enforce the applicable code.

Within 2 years of certification of a state code, or the establishment of a national code, each state must certify that either:
(1) achieved compliance: at least 90% of new and substantially-renovated building space meets code requirements, verified by independent inspections of a random sample of buildings or alternative method, or
(2) progress: only within 7 years after enactment:

• it has a plan to achieve full compliance within 5 years of code adoption,
• is implementing that plan,
• has not reduced spending on code enforcement, and
• at least 50% of new and substantially renovated building space meets the code.

DOE is to review within 90 days.
In states that do not have a certification accepted, local governments may meet the same requirements. [(d)(4), (e)(1) – (6)]

Federal enforcement

DOE shall enforce applicable energy codes where the state and local governments fail to do so.

DOE shall, by rule within 2 years of enactment, establish enforcement capability designed to achieve 90% compliance within 1 year in states that don’t achieve compliance targets. Inspection fees may be collected to fund this activity.

DOE shall, by rule within 3 years of enactment, determine penalties for violations of a national code, and ask for any needed legislation. [(f) & (g)]

Federal support to states and localities for implementation

DOE is to provide technical assistance to states, including procedures to demonstrate their codes meet the targets and to improve and implement codes.

DOE is to provide incentive funding to states to implement requirements of this provision and to improve and implement building efficiency codes, including increasing and verifying compliance.

Additional funding is to be provided to states that have adopted the 2006 IECC or ASHRAE 90.1-2007, or to local governments in states that have not, to achieve and document a 90% compliance rate with the codes.

Up to $500,000 per state may be used to train state and local building code officials.

Authorizes $100 million each year from 2009 through 2013, and such sums as necessary thereafter, for this assistance. [(c)(4)(C) & (e)]

The DOE is to support training and education for builders in coordination with code officials, architects, engineers, experts and other builders.

0.5% of all allowances (estimated average of $370 million per year) are allocated to states that have certified compliance through the SEED Accounts under the formula:

• 1/5 equally divided amongst the 50 states and territories
• 2/5 as a function of the energy use in all buildings in each state.
• 2/5 based on building activity using the number of building starts, building permits, or other indicator.

These allowances shall be used exclusively for the costs of ‘development, adoption, implementation, and enforcement’ of a certified or national energy code.

In states where local governments provide ‘substantially all’ building code enforcement, at least 50% of the allowance value must be distributed to local governments based on their populations. Local governments that certify compliance (in states that do not) shall receive a portion of the allowances that the state would have received, based on their relative populations.

Where State and local governments share enforcement duties, shares of the allowance values will be apportioned based on the number of building inspections conducted by each level of government, and between localities based on population. [(f)(5) – (6) & (h)]

Consequences for states not meeting targets

If a state does not meet the adoption and compliance requirements, it must submit a report to the DOE explaining the status of the state’s efforts to reach compliance and a plan to do so, and it is out of compliance with the section. In states out of compliance, localities may meet the certification requirements. [(d)(1)-(3)]

States that do not meet the compliance targets are out of compliance with the section, and ineligible to receive:

• emission allowances for codes implementation,
• State Energy Program funding in excess of the state’s share of $125 million each year, and
• a percentage of other funding provided under the bill (this would include up to 9.5% of allowances provided for SEED), starting at 25% in the first year of noncompliance and rising to 100% in the fourth and subsequent years. [(e)(6)]

Administration

Funding

Authorization for support to states described above.

Authorizes $25 million each year from 2010 through 2020, and such sums as necessary thereafter. [(i)]

DOE reports

DOE shall annually report to Congress on the status of the national codes, the status of code adoption and compliance in the States, implementation of this provision, and impacts of the program. [(d)(4)]

DOE shall annually report to Congress on the status of the national codes, the status of code adoption and compliance in the States, implementation of this provision, impacts of the program, Federal enforcement of building codes, and impacts of past action. [(j)]

Procedures

DOE shall allow public comment on targets, determinations, and modified codes and standards, and publish them in the Federal Register. [(a)(2)(D)]

As described above, most targets and codes are to be set by rule.

Year

Model Codes (IECC/ASHRAE 90.1)

State Adoption

Senate

House

Senate

House

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Commercial

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