[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Proposed Rules]
[Pages 61694-61735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24151]
[[Page 61693]]
Vol. 79
Tuesday,
No. 198
October 14, 2014
Part II
Department of Energy
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10 CFR Parts 433 and 435
Fossil Fuel-Generated Energy Consumption Reduction for New Federal
Buildings and Major Renovations of Federal Buildings; Proposed Rule
Federal Register / Vol. 79 , No. 198 / Tuesday, October 14, 2014 /
Proposed Rules
[[Page 61694]]
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DEPARTMENT OF ENERGY
10 CFR Parts 433 and 435
[Docket No. EERE-2010-BT-STD-0031]
RIN 1904-AB96
Fossil Fuel-Generated Energy Consumption Reduction for New
Federal Buildings and Major Renovations of Federal Buildings
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Supplemental notice of proposed rulemaking.
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SUMMARY: The Energy Conservation and Production Act (ECPA), as amended
by the Energy Independence and Security Act of 2007, requires DOE to
establish revised performance standards for the construction of new
Federal buildings, including commercial buildings, multi-family high-
rise residential buildings and low-rise residential buildings. On
October 15, 2010, DOE issued a Notice of Proposed Rulemaking (NOPR) to
establish regulations implementing the fossil fuel-generated energy
provisions of the ECPA performance standards for Federal buildings. In
response to the NOPR, DOE received a number of comments expressing
concern and encouraging DOE to re-examine the proposed regulations. In
response to these comments, DOE has identified additional areas for
clarification and consideration that would benefit from further public
comment. In this supplemental notice of proposed rulemaking (SNOPR),
DOE responds to the comments received on the NOPR and identifies and
seeks comment on additional approaches to the scope of the requirements
in the context of major renovations, the potential use of renewable
energy certificates for compliance, and a streamlined process for
agencies to seek a downward adjustment from the required reduction
levels, particularly for major renovations.
DATES: Public comments on this supplemental proposed rule will be
accepted until December 15, 2014.
ADDRESSES: This rulemaking can be identified by docket number EERE-
2010-BT-STD-0031 and/or RIN number 1904-AB96.
Docket: The docket is available for review at http://www.regulations.gov including Federal Register Notices, public meeting
attendee lists, transcripts, comments and other supporting documents/
materials. All documents in the docket are listed in the http://www.regulations.gov index.
You may submit comments, identified by any of the following
methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include
EERE-2010-BT-STD-0031 and/or RIN 1904-AB96 in the subject line of the
message.
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-2J, Fossil Fuel-
Generated Energy Consumption Reduction for New Federal Buildings and
Major Renovations of Federal Buildings, EERE-2010-BT-STD-0031 and/or
RIN 1904-AB96, 1000 Independence Avenue SW., Washington, DC 20585-0121.
Telephone: (202) 586-9138. Please submit one signed paper original. Due
to the potential delays in DOE's receipt and processing of mail sent
through the U.S. Postal Service, DOE encourages respondents to submit
comments electronically to ensure timely receipt.
Hand Delivery/Courier: Brenda Edwards, U.S. Department of
Energy, Office of Energy Efficiency and Renewable Energy, Building
Technologies Program, EE-2J, 1000 Independence Avenue SW., Washington,
DC 20585-0121.
Instructions: All submissions must include the agency name and
docket number or Regulatory Information Number (RIN) for this
rulemaking.
Docket: For access to the docket to read background documents or
comments received by DOE, go to the U.S. Department of Energy,
Forrestal Building, Room 5E-080 (Resource Room of the Federal Energy
Management Program), 1000 Independence Avenue SW., Washington, DC,
(202) 586-9127, between 9 a.m. and 4 p.m., Monday through Friday,
except Federal holidays. Please call Brenda Edwards at (202) 586-2945
for additional information regarding visiting the Resource Room.
FOR FURTHER INFORMATION CONTACT: For technical issues, contact Sarah
Jensen, U.S. Department of Energy, Office of Energy Efficiency and
Renewable Energy, Building Technologies Program, EE-5F, 1000
Independence Avenue SW., Washington, DC 20585-0121, (202) 287-6033,
email: [email protected]. For legal issues, contact Ami Grace-
Tardy, U.S. Department of Energy, Office of the General Counsel,
Forrestal Building, GC-71, 1000 Independence Avenue SW., Washington, DC
20585, (202) 586-5709, email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority
B. Background
II. Summary of the Proposed Rule
III. General Discussion and Response to Comments
A. Overview
B. Scope and Applicability of the Proposed Rule
1. Determining the $2.5 Million Threshold for Applicability of
the Rule
2. Compliance Date of the Rule
3. Major Renovations
4. Multiple Buildings
5. Leased Buildings
6. Federal Buildings Overseas
7. Residential Buildings
8. Privatized Military Housing
9. Other
C. Establishing and using the Baseline
1. CBECS and RECS Baselines
2. Climate Adjustment
3. Plug and Process Loads
4. Differentiate Between Fossil Fuels
5. Regional Fossil Fuel Factors
6. Marginal Source of Electricity
7. Residential Common Areas
8. Major Renovations
9. Other
D. Methodology to Determine Compliance
1. Whole Building Simulation
2. Off-Site and On-Site Renewable Energy and Renewable Energy
Certificates
3. Use of Source Energy
4. Fuel Conversion Efficiency
5. On-Site Energy Generation From Natural Gas
6. Additional Review
7. Other
E. Petitions for Downward Adjustment
1. Technical Impracticability and Cost as a Basis for Downward
Adjustment
2. Bundling of Petitions
3. DOE Review Process
4. Information Required in Petitions for New Construction
5. Downward Adjustments for Major Renovations
6. Make Information Publicly Available
7. Narrow the Use of Petitions
8. GSA Tenant Agencies
9. Other
F. Impacts of the Rule
1. Cost Impacts
2. Other Impacts
G. Guidance and Other Topics
1. Training
2. Verification and Monitoring
IV. Reference Resources
V. Procedural Issues and Regulatory Review
I. Introduction
A. Authority
Section 305 of the Energy Conservation and Production Act (ECPA)
established energy conservation requirements for Federal buildings. (42
U.S.C. 6834) Section 433(a) of the Energy Independence and Security Act
of 2007 (Pub. L. 110-140) (EISA 2007) amended section 305 of ECPA and
directed DOE to establish regulations that require fossil fuel-
generated energy
[[Page 61695]]
consumption reductions for certain new Federal buildings and Federal
buildings undergoing major renovations. (42 U.S.C. 6834(a)(3)(D)(i))
The fossil-fuel generated energy consumption reductions only apply to
Federal buildings that: (1) Are ``public buildings'' (as defined in 40
U.S.C. 3301) \1\ with respect to which the Administrator of General
Services is required to transmit a prospectus to Congress under 40
U.S.C. 3307;\2\ or (2) those that cost at least $2,500,000 in costs
adjusted annually for inflation. (42 U.S.C. 6834(a)(3)(D)(i))
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\1\ Under 40 U.S.C. 3301(5), ``public building'' is a building,
whether for single or multitenant occupancy, and its grounds,
approaches, and appurtenances, which is generally suitable for use
as office or storage space or both by one or more Federal agencies
or mixed-ownership Government corporations.
``Public building'' includes Federal office buildings, post
offices, customhouses, courthouses, appraisers stores, border
inspection facilities, warehouses, record centers, relocation
facilities, telecommuting centers, similar Federal facilities, and
any other buildings or construction projects the inclusion of which
the President considers to be justified in the public interest.
The definition does not include a building or construction
project that is on the public domain (including that reserved for
national forests and other purposes); that is on property of the
Government in foreign countries; that is on Indian and native Eskimo
property held in trust by the Government; that is on land used in
connection with Federal programs for agricultural, recreational, and
conservation purposes, including research in connection with the
programs; that is on or used in connection with river, harbor, flood
control, reclamation or power projects, for chemical manufacturing
or development projects, or for nuclear production, research, or
development projects; that is on or used in connection with housing
and residential projects; that is on military installations
(including any fort, camp, post, naval training station, airfield,
proving ground, military supply depot, military school, or any
similar facility of the Department of Defense); that is on
installations of the Department of Veterans Affairs used for
hospital or domiciliary purposes; or the exclusion of which the
President considers to be justified in the public interest.
\2\ 40 U.S.C. 3307 describes the minimum construction,
alteration and lease costs that would trigger a prospectus to
Congress.
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For these buildings, Section 305 of ECPA, as amended by EISA 2007,
mandates that the buildings be designed so that a building's fossil
fuel-generated energy consumption is reduced as compared with such
energy consumption by a similar building in fiscal year 2003 (as
measured by Commercial Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from the DOE's Energy
Information Administration) by 55 percent beginning in fiscal year
2010, 65 percent beginning in fiscal year 2015, 80 percent beginning in
fiscal year 2020, 90 percent beginning in fiscal year 2025, and 100
percent beginning in fiscal year 2030. (42 U.S.C. 6834(a)(3)(D)(i)(I))
In addition, upon petition by an agency subject to the statutory
requirements, ECPA, as amended by EISA 2007, permits DOE to adjust the
applicable numeric reduction requirement downward with respect to a
specific building, if the head of the agency designing the building
certifies in writing that meeting such requirement would be technically
impracticable in light of the agency's specified functional needs for
that building and DOE concurs with the agency's conclusion. (42 U.S.C.
6834(a)(3)(D)(i)(II)) Such an adjustment does not apply to GSA. (42
U.S.C. 6834(a)(3)(D)(i)(II)) (In the remainder of today's rulemaking,
all references to ECPA refer to the statute as amended through EISA
2007.)
B. Background
This supplemental notice of proposed rulemaking amends certain
portions of 10 CFR parts 433 and 435, the regulations governing energy
efficiency in Federal buildings. The Notice of Proposed Rulemaking
(NOPR) was published on October 15, 2010. 75 FR 63404. The public
meeting was held on November 12, 2010, and public comments were
accepted through December 14, 2010. DOE received a number of comments
expressing concern and encouraging DOE to re-examine the proposed
regulations.\3\ In response to these comments, DOE has identified
additional areas for clarification and consideration that would benefit
from further public comment. In this SNOPR, DOE responds to the
comments received on the NOPR and identifies and seeks comment on
additional approaches to the scope of the requirements in the context
of major renovations, the potential use of renewable energy
certificates for compliance, and a more streamlined process for
agencies to seek a downward adjustment from the reduction levels.
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\3\ Complete contents of the docket folder may be found at
http://www.regulations.gov/#!docketDetail;D=EERE-2010-BT-STD-0031.
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DOE is in the process of addressing other requirements for Federal
buildings mandated in ECPA, as amended by section 433 of EISA. DOE
published a proposed rule on sustainable design standards for new
Federal buildings and major renovations on May 28, 2010 (75 FR 29933)
(the ``Sustainable Design NOPR''), which also proposed to amend certain
portions of 10 CFR parts 433 and 435. (Docket No. EE-RM/STD-02-112, RIN
1904-AC13) Elsewhere in this issue of the Federal Register, the green
building certification portion of the Sustainable Design NOPR is
published as a final rule.
DOE received a number of comments on the scope of the EISA 2007
amendments both in the context of this rulemaking and in response to
the Sustainable Design NOPR. DOE addresses both sets of comments in
today's rulemaking.
II. Summary of the Proposed Rule
This SNOPR addresses requirements for new construction and major
renovations of Federal commercial and high-rise residential buildings,
as well as Federal low-rise residential buildings. The following is an
overview of each section of today's SNOPR, including any relevant
changes from the proposal as provided in the October 15, 2010 NOPR. (75
FR 63404; ``2010 Proposed Rule'')
A. Regulatory Scheme
In this SNOPR, DOE is proposing to address the contents of Subpart
B of both 10 CFR parts 433 and 435--the fossil fuel-generated energy
consumption requirements.
In addition, this rule proposes to amend the term ``life-cycle
cost-effective'' to tie the definition of life-cycle cost-effectiveness
closer to the four life cycle cost methodologies set out in subpart A
of 10 CFR part 436.
B. Overall Basis for the Rulemaking
The underlying requirements for this rulemaking are based on the
requirements in Section 433 of EISA 2007. The statute requires that
covered Federal buildings be designed so that the fossil fuel-generated
energy consumption of the buildings is reduced, as compared with such
energy consumption by a similar building in fiscal year 2003 (as
measured by Commercial Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from DOE's Energy
Information Administration), by the percentage specified in the
following table:
Fiscal Year Percentage Reduction
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2010............................................................... 55
2015............................................................... 65
2020............................................................... 80
2025............................................................... 90
2030............................................................... 100
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As discussed later in this document, DOE believes that the current
energy efficiency requirements applicable to the design of new Federal
buildings, when compared to the energy efficiency of the baseline
buildings, would result in a substantial level of compliance with
[[Page 61696]]
the 55 percent and 65 percent reduction levels.
C. Covered Buildings
The proposed rule would apply to certain new Federal buildings, and
major renovations to Federal buildings, as specified in section 433 of
EISA 2007. By statute, the term ``Federal building'' means any building
to be constructed by, or for the use of, any Federal agency, including
buildings built for the purpose of being leased by a Federal agency,
and privatized military housing. (42 U.S.C. 6832(6))
This proposed rule only would apply to new Federal buildings and
major renovations to Federal buildings covered by EISA 2007. Federal
buildings covered by EISA 2007 include new Federal buildings, or major
renovations to Federal buildings, that are also: (1) Public buildings,
as defined in 40 U.S.C. 3301 for which a transmittal of a prospectus to
Congress is required under 40 U.S.C. 3307; or (2) Federal buildings for
which the construction cost or major renovation cost is at least
$2,500,000 (2007 dollars, adjusted for inflation). This subset of
buildings and major renovations will be referred to as EISA-covered
buildings in this SNOPR.
D. Definitions
This rulemaking contains definitions for ``combined heat and power
(CHP) system,'' ``district energy system,'' ``fiscal year,'' ``major
renovation,'' ``power purchase agreement (PPA),'' ``proposed
building,'' and ``renewable energy certificate.''
This rulemaking also proposes to define 16 categories of commercial
buildings and one category of multi-family high-rise residential
buildings in 10 CFR part 433 and one category of low-rise residential
buildings in 10 CFR part 435. The 16 categories of commercial buildings
proposed are education, food sales, food service, health care
(inpatient), health care (outpatient), laboratory, lodging, mercantile
(enclosed and strip shopping malls), office, public assembly, public
order and safety, religious worship, retail (other than mall), service,
and warehouse and storage. Many of these commercial building categories
are further divided into building types. The single category of low-
rise residential buildings is divided into five building/activity
types: manufactured homes, multi-family in 2-4 unit buildings, multi-
family in 5 or more unit buildings, single-family attached, and single-
family detached. These building categories and building types represent
the high-level principal building activity and low-level principle
building activity categories in the 2003 Commercial Building Energy
Consumption Survey (CBECS).\4\
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\4\ The CBECS principle building types and subcategories are
described at http://www.eia.gov/consumption/commercial/building-type-definitions.cfm. This rulemaking is based on the subcategories
shown in this link.
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E. Fossil Fuel-Generated Energy Consumption Requirements
For buildings for which design for construction begins in the
fiscal years 2013 to 2029, tables of the proposed maximum allowable
fossil fuel-generated energy consumption by building type and climate
zone are provided. The proposed values in the tables come from DOE's
Energy Information Administration (EIA) CBECS (for commercial
buildings) and RECS (for multi-family high-rise and low-rise
residential buildings), both of which are converted from site energy
consumption to source energy consumption. The building types in the
tables in Appendix A to this proposed rule are subsets of the building
categories discussed above.
The CBECS and RECS data was parsed into the 16 climate zones used
in the current Federal baseline standards for commercial and multi-
family high-rise residential buildings, which rely on ANSI/ASHRAE/IESNA
Standard 90.1.
For buildings that combine two or more building types, area-
weighted averaging by square footage for each building type would be
used to calculate the maximum allowable fossil fuel-generated energy
consumption of the combined building. For building types dominated by
process loads, as defined in 10 CFR 433.2, and that are not listed in
CBECS, the regulations would require the use of the CBECS building type
that most closely matches the building without the process load and
then accounting for the process load in the calculation. For these
buildings, process loads would be accounted for, but are not subject to
the percentage reductions in fossil fuel-generated energy consumption
required for the building related loads.
For major renovations that are less than whole building renovations
(system or component level retrofits) DOE is proposing that the maximum
allowable fossil fuel-generated energy consumption in fiscal years 2013
through 2029 be based on a percentage of the whole building energy
consumption represented by the renovated system or component.
For buildings for which design for construction begins in fiscal
year 2030 or beyond, the fossil fuel-generated energy consumption of
the building would be required to be zero for all building types and
climate zones, based on the calculation established in the regulations.
F. Fossil Fuel-Generated Energy Consumption Determination
To determine compliance with the fossil fuel reductions, agencies
would be required to estimate the fossil fuel-generated energy
consumption of their proposed building design and compare that estimate
to the allowable fiscal year percentage reduction target. DOE has
proposed a calculation to make this estimated fossil fuel-generated
energy consumption for the proposed building.
Fundamentally, the calculation would add the fossil fuel component
of the electricity used by the building to the direct fossil fuels used
by the building. To calculate the fossil fuel component of the
electricity used by the building, agencies would be required to first
estimate the amount of electricity used by the building in accordance
with the Performance Rating Method in Appendix G of ASHRAE Standard
90.1-2010. Any electricity produced from a renewable energy or CHP
system would not count towards the site electricity consumption in the
baseline or the current calculated level. This figure would then be
multiplied by the fossil fuel generation factor (calculated at 0.71 for
the 2003 base year and also for 2012, the latest year of data available
from EIA) to account for the percentage of electricity in the U.S. that
is generated from fossil fuel.\5\ FEMP will publish updates to the
fossil fuel generation factor annually on the FEMP Web site \6\ so that
agencies can use the most recent value in their calculations. The
adjusted site electricity estimate would then be converted to source
electricity by dividing it by the national average electricity source
energy factor of 0.316 to account for fuel conversion and transmission
and distribution losses. To this would be added the direct fossil fuel
consumption for fuels other than electricity, adjusted for distribution
and other losses that occur between delivery to the fuel provider and
final delivery to
[[Page 61697]]
the site with the other fuels source energy multiplier. The other fuels
energy source multiplier would not include losses associated with the
production, harvesting, refining, or transportation of bulk fuels. The
result would then be divided by the floor area of the building and
converted to thousands of British thermal units per square foot (kBtu/
sq.ft.).
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\5\ The fossil fuel generation factor of 0.71 is derived from
Table 3.2.A of the Energy Information Administration (EIA) 2012
Electric Power Annual Report (http://www.eia.gov/electricity/annual/html/epa_03_02_a.html). Specifically, the number is developed by
summing the annual electricity produced by coal, petroleum liquids,
petroleum coke, natural gas, and other gas and then dividing the sum
by the total electricity produced. 0.71 is the value of this factor
in 2003 and in 2012, but the value has changed over time and is
expected to vary in the future as new sources of renewable energy
come online.
\6\ http://energy.gov/eere/femp/federal-energy-management-program.
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For major renovations that are less than whole building renovations
(system or component level retrofits) DOE proposes to base the subject
fossil fuel-generated energy consumption on the system or component as
retrofitted.
Electricity produced from renewable energy would qualify as a
deduction to the extent that it represents new electric generating
capacity or a new renewable energy obligation on the part of the
agency, and not a reassignment of existing capacity or obligations. The
regulations would establish criteria for on-site renewable electricity
generation and off-site renewable electricity generation (including
generation represented by Renewable Energy Certificates) to help
clarify these terms and the limits on how this generation may be used
as a deduction from the proposed building electricity consumption. DOE
has also proposed a clarification as to how electricity associated with
district heating or cooling systems, district chilled water, and CHP
systems would be treated.
G. Petitions for Downward Adjustment
Under the provision of Section 433 of EISA 2007 and as proposed,
agencies other than GSA (but including GSA-tenant agencies with
significant control over building design) would be able to petition DOE
for an adjustment to the fossil fuel requirement with respect to a
specific building if meeting the requirement is technically
impracticable in light of the agency's functional needs for the
building. This proposed rule provides a list of what information would
be required to be included in a petition for a downward adjust for a
new building. This includes a description of the building and
associated components and equipment, an explanation of why compliance
with the requirements is technically impracticable in light of the
functional needs of the building, a demonstration that all cost-
effective energy efficiency and on-site renewable energy measures were
included in the building design, and a description of measures that
were evaluated but rejected. As proposed, the Director of the Federal
Energy Management Program would review the petition and make a decision
on the petition within 90 days of submittal.
Additionally, this rulemaking proposes separate, streamlined
downward adjustment processes for major renovations that are whole
building renovations and for major renovations that are system or
component level retrofits. The streamlined processes recognize the
constraints on compliance inherent with major renovations, e.g.,
building site and orientation cannot be changed and configuration of
the building shell is likely difficult, if not technically
impracticable, to adjust. Under DOE's proposal, upon application, a
Federal agency with a major renovation that is a whole building
renovation would receive a downward adjustment equal to the energy
efficiency level that would be required under the Federal building
energy efficiency standards were the building a new building (i.e., the
ASHRAE 90.1 and IECC requirements applicable to commercial and
residential new Federal buildings, respectively). Upon application, a
major renovation that is limited to a system or component level
retrofit would receive a downward adjustment equal to the energy
efficiency level that would be achieved through the use of products
that represent a level of energy efficiency that is life-cycle cost-
effective if such products are commercially available. This would be
demonstrated through the use of ENERGY STAR or FEMP-designated
products, or products that meet the applicable prescriptive
requirements under ASHRAE 90.1 or the IECC.
H. Summary of the Differences Between the 2010 Proposed Rule and This
Proposed Rule
In this proposed rule, the Department makes a number of substantial
changes from the 2010 proposed rule. The changes apply to both 10 CFR
part 433 and 10 CFR part 435 unless otherwise noted. Details of these
changes with a discussion of each are described in Section III. This
proposed rule would:
Add definitions for combined heat and power (CHP) system,
proposed building, proposed building site electricity consumption,
direct fossil fuel consumption of proposed building, district energy
system, electricity source energy factor, fiscal year, floor area,
fossil fuel generation factor, other fuels source energy multiplier,
power purchase agreement (PPA), renewable energy certificates and
renewable energy and CHP electricity deduction.
Delete definitions for fossil fuel, fossil fuel
consumption for electricity generation, and primary electrical energy
consumption.
Amend definitions for direct fossil fuel consumption,
district energy system, electricity source energy factor, fossil fuel
generation factor, and major renovation.
Clarify applicability of the rule to major renovations.
Clarify applicability of the rule to leased facilities.
Replace the proposed maximum allowable fossil fuel-
generated energy consumption tables with new tables adjusted for each
of DOE's 16 climate zones and covering additional commercial building
types.
Consider an approach to determine required fossil fuel-
generated energy consumption levels for major renovations that are
limited to system or component level retrofits.
Delete the Performance Rating Method in Appendix G of
ASHRAE Standard 90-1.2004 and the IECC Simulated Performance
Alternative as the means to calculate a baseline for building types not
listed in the Commercial Buildings Energy Consumption Survey (CBECS)
and the Residential Energy Consumption Survey (RECS), respectively. The
expansion of building types would eliminate the need to develop
alternative baselines.
Include an alternative compliance method for buildings
with process loads that are not included in CBECS and RECS. Clarifies
that process loads of building types not included in CBECS are not
subject to the fossil fuel reductions.
Clarify performance level determination. Modify the
calculation methodology and specify the electricity source factor and
the fossil fuel generation factor to be used. Add a source energy
multiplier for other fuels.
Specify what qualifies as a renewable energy and CHP
deduction, including renewable energy produced off-site by the agency,
renewable energy acquired pursuant to a power purchase agreement,
Renewable Energy Certificates and a pro-rated share of the electricity
produced from a CHP system. Specify that renewable energy production
must be additive, that it must be tracked, and that the renewable
energy attributes must be retained.
Clarify how district heating and cooling systems and
combined heat and power systems are to be considered in determining
compliance with the fossil fuel reductions.
Move the discussion of petitions for downward adjustment
into its own subsection.
Allow GSA-tenant agencies to submit a petition for
downward adjustment.
[[Page 61698]]
Add information to be included in petitions for downward
adjustment for new buildings, including a demonstration that all energy
efficiency measures and on-site renewable energy measures that are
life-cycle cost-effective have been included in the design; a
description of technologies that were evaluated and rejected, including
a justification for why they were rejected; and a description of the
building and building energy-related features.
Provide an address to which petitions must be submitted
and clarify that DOE would respond to petitions within 90 days.
Provide streamlined processes for Federal agencies to
petition for a downward adjustment for major renovations.
III. General Discussion and Response to Comments
A. Overview
DOE received comments from 22 different entities. In addition,
10,677 form letters were received in a campaign coordinated by
Earthjustice, some of which included unique comments (hereinafter
referred to collectively as ``Form Letters.'')
The comments were analyzed and categorized into six major
categories: Applicability, Baseline, Methodology, Impacts, Petition for
Downward Adjustment, and Guidance. Each of these major categories was
subdivided into at least four subcategories, leading to the final
comment categorization shown below.
Applicability: costs to determine $2.5 million threshold; the
effective date of the rule; definition of major renovations;
applicability to single or multiple buildings; treatment of leased
buildings and mixed use buildings; Federal buildings overseas;
residential building categories; privatized military housing;
coordination with the DOE rulemaking on sustainable design practices;
and other.
Baseline: CBECS and RECS baseline; climate adjustment; whole
building simulation; buildings with energy-intensive process loads not
covered in CBECS and RECS; plug and process loads; differentiation
between fossil fuels; differentiation of electric power mix by region;
using the marginal source of electricity; treatment of residential
common areas; and other.
Methodology: additional rounds of review of the rule; off-site
renewable energy; source versus site energy; on-site energy generation;
fuel conversion efficiency; and other.
Impacts: cost impacts and other.
Petition for downward adjustment: bundling of petitions; costs as
grounds for a petition; DOE review process; information in petitions;
public availability of petitions; stringency of petition requirements;
GSA-tenant agencies; and consideration of technical impracticability.
Guidance: training and verification and monitoring.
Most of the issues are the same for both commercial buildings
(including multi-family residential buildings four stories or more) and
residential buildings. Therefore, the discussion below applies to both
building categories unless otherwise noted.
B. Scope and Applicability of the Proposed Rule
This section discusses the scope, or applicability, of the rule as
proposed in response to comments received to date. This section
provides preliminary responses related to: (1) What costs should be
considered when calculating whether a construction project meets the
$2.5 million threshold in EISA 2007; (2) when the rule goes into
effect; and (3) which new construction and major renovation projects
are covered by today's rule.
1. Determining the $2.5 Million Threshold for Applicability of the Rule
As noted above, the proposed rule would apply to new Federal
buildings and major renovations to Federal buildings that are: (1)
``public buildings'' as defined by 40 U.S.C. 3301 for which a
prospectus to Congress is required under 40 U.S.C. 3307; or (2)
buildings with construction or renovation costs of at least $2.5
million in costs adjusted annually for inflation. (42 U.S.C.
6834(a)(3)(D)(i)) (These buildings are collectively referred to as
``EISA-covered buildings'' in this SNOPR.) DOE notes that the ECPA
definition of ``Federal building'' was revised by EISA 2007. DOE is
addresses this definition and the regulatory definition of ``new
Federal building'' in this rulemaking. ECPA, as amended, defines
``Federal building'' to mean any building to be constructed by, or for
the use of, any Federal agency including buildings built for the
purpose of being leased by a Federal agency, and privatized military
housing. (42 U.S.C. 6832(6))
DOE requested comments in the NOPR specifically on the definition
of construction costs to determine which buildings meet the $2.5
million threshold and would be subject to the fossil fuel reduction
requirements. DOE noted that construction costs generally include
design, permitting, construction (materials and labor), and
commissioning costs, but that land and legal costs generally would not
be included. 75 FR 63406.
The American Gas Association (AGA) and the Department of Health &
Human Services-Indian Health Service-Office of Environmental Health,
Division of Engineering Services (DHHS-IHS-OEHE) agreed with the
proposed definition. (AGA, No. 16 at p. 4; \7\ DHHS, No. 24 at p. 1)
The Edison Electric Institute (EEI) commented that the land and legal
costs could be very high, and that all costs should be considered in
any analysis. (EEI, No. 10 at p. 2)
---------------------------------------------------------------------------
\7\ Notations of this form appear throughout this document and
identify statements made in written comments or at public hearings
that DOE has received and has included in the docket for this
rulemaking. For example, ``AGA, No. 16 at p. 4'' refers to a
comment: (1) From the American Gas Association; (2) in document
number 16 in the docket of this rulemaking; and (3) appearing on
page 4 of the submission.
---------------------------------------------------------------------------
DOE preliminarily has decided that land and legal costs would not
be included when determining the $2.5 million threshold. Legal costs
are generally part of overhead costs, not construction costs.
Concerning land costs, many new Federal buildings are built on land
already owned by the Federal government. Moreover, it would be very
challenging for agencies to determine the value of the land in these
cases where there is no recent land purchase. Not including land costs
for new Federal buildings in the threshold calculation would be
consistent with the threshold calculation for major renovations, for
which land costs are not a concern.
In addition to comments specifically about land and legal costs,
AGA and the National Propane Gas Association (NPGA) both questioned
whether the cost of compliance with the fossil fuel consumption
reductions would be included when determining whether the $2.5 million
applicability threshold is met. (AGA, No. 17 at p. 6; NPGA, No. 23 at
p. 3) NPGA also expressed concern that the threshold is too low. (NPGA,
No. 23 at p. 3)
DOE believes that it could be difficult to separate the costs of
complying with the requirements of this rule from other design and
construction costs. Conversely, it may be difficult to calculate the
cost of a project including the costs to comply with the fossil fuel
reduction requirements in those instances in which an agency would be
seeking a downward adjustment. DOE anticipates that design and
constructions costs for most new Federal buildings, and many
[[Page 61699]]
renovations to Federal buildings, will exceed $2.5 million. Therefore,
DOE proposes that the $2.5 million threshold does not include the cost
of complying with the reductions and requests comment on this proposal.
2. Compliance Date of the Rule
The NOPR stated that the requirements would apply to all eligible
buildings for which design for construction began at least one year
after publication of the final rule. 75 FR 63415. The Department of
Defense-Air Force (DOD-AF) asked that the rule apply to projects
programmed after the date the rule is final. (DOD-AF, No. 25C at p. 3)
The majority of the comments on this issue suggested not delaying the
rule. The Natural Resources Defense Council (NRDC) and the Form Letters
stated that the rule should be finalized and implemented immediately,
and AGA commented that the target reductions should be promulgated as
soon as administratively practicable. (NRDC, No. 14 at pp. 13-14; Form
letter, No. 29 at p. 1; AGA, No. 16 at p. 2) NRDC commented that the
rule is already late, and recommended that ``design for construction''
be interpreted to mean the initiation of the schematic design phase.
(NRDC, No. 14 at pp. 13-14) NRDC also commented that DOE should
interpret the fossil fuel-generated reduction tables in EISA 2007 to
apply to the date of initial occupancy rather than the date that design
begins. (NRDC, No. 14 at p. 15)
DOE proposes to retain the compliance date, tied to the design of
the building, as proposed in the NOPR. Federal agencies are familiar
with this date as it is consistent with the compliance date that DOE
has used for baseline Federal building energy efficiency standards at
10 CFR parts 433 and 435 for several years. Under 10 CFR parts 433 and
435, ``design for construction'' means the stage when the energy
efficiency and sustainability details (such as insulation levels, HVAC
(heating, ventilating, and air-conditioning) systems, water-using
systems, etc.) are either explicitly determined or implicitly included
in a project cost specification. This proposed rule would add a closely
related definition of ``proposed building'' to tie the ``design for
construction'' definition to the fossil fuel-generated energy
consumption determination equation in the rule. A proposed building
would be the design for construction of a new Federal commercial,
multi-family high-rise residential building, or low-rise residential
building, or major renovation to such a building, proposed for
construction. This definition was not proposed in the NOPR. DOE intends
that the addition of this definition would help clarify terms in the
fossil fuel-generated energy consumption determination equation.
3. Major Renovations
ECPA requires that fossil fuel reductions be implemented in ``major
renovations'' to EISA-covered buildings. The Sustainable Design NOPR
would define major renovation to include changes to a building that
provide significant opportunities for substantial improvement in energy
efficiency and renovations of any kind with costs that exceed 25
percent of the replacement value of the building, and requested
comments on the definition. 75 FR 29942. Because DOE had assigned the
definition to the Sustainable Design Rule with the expectation that it
would serve for both rules, DOE did not include the definition in the
NOPR for this rule. However, this supplemental proposed fossil fuel-
generated reduction rule is now being published prior to a final
Sustainable Design rule, so DOE has modified the major renovation
definition proposed in the Sustainable Design rule to align more
closely with today's fossil fuel-generated reduction supplemental
proposed rule.
Nonetheless, DOE received several comments related to major
renovations for this rulemaking. NRDC commented that the scope of the
rule should be broadened to apply to all new Federal buildings in order
to meet the requirements of EISA 2007. (NRDC, No. 14 at p. 2) The
American Public Gas Association (APGA) commented that the 25 percent
threshold amount is too low. (APGA, No. 17 at p. 2) Both the Department
of Defense-Navy (DOD-N) and DOD-AF recommended that DOE limit the rule
to major renovations that cost 50 percent or more of the building
replacement value, as that is the definition they use internally for
their facilities. (DOD-N, No. 25B at p. 11; DOD-AF, No. 25C at p. 5)
DOE also received two comments about renovations spanning more than one
year. NRDC commented that DOE must define ``construction project
costs'' to be the total planned or budgeted project costs for the
renovation, irrespective of whether the project spans more than one
fiscal year or whether the agency has yet to receive full funding.
(NRDC, No. 14 at p. 5) APGA commented that by not including renovation
activities that potentially could occur in future fiscal years, that
energy saving capital-expenditure renovations will be deferred to
future fiscal years and could end up producing a negative net energy
and greenhouse gas emissions return for renovation dollars expended.
(APGA, No. 17 at p. 6)
Based on the comments received, DOE is proposing to not include the
25 percent cost limit in the definition of ``major renovation.''
Regarding the issue of renovating a Federal building in phases over
more than one year, the applicability of the requirements are again
tied to the design for construction. If the cost of the design for
construction, although performed in different phases, would trigger
application of the fossil fuel requirements and the phases are known in
advance, the fossil fuel requirements would apply. The construction
phases should be planned such that the fossil fuel reductions are
achieved by the time the entire project is complete.
DOE proposes to clarify how the requirements would be applied to
portions of a building or individual systems being renovated as part of
a major renovation. DOE does not intend to require Federal agencies to
meet the fossil fuel-generated reduction requirements for an entire
building when an agency renovation is limited to system or component
level retrofits. DOE proposes that the fossil fuel reduction
requirements apply only to the fossil fuel consumption associated with
the portions of the building or building systems that are being
renovated and only to the extent that the scope of the renovation
provides an opportunity for compliance with the applicable fossil fuel-
generated energy consumption reduction requirements.
This addition to the regulatory language would direct Federal
agencies to determine whether the extent of the renovation allows for
compliance with the requirements. For example, a renovation that
overhauls a major energy-consuming system (e.g., lighting, HVAC,
envelope, etc.) is likely a major renovation subject to today's
requirements because the renovation likely allows for compliance with
the rule. Additionally, DOE proposes to distinguish between a major
renovation that is a whole building renovation, and a major renovation
that is limited to a system or component level retrofit.
As reflected in the comments received, DOE acknowledges that it
would often be technically impracticable in light of an agency's
specified functional needs to meet the requirements of today's rule
during a major renovation. A major renovation could range from what is
essentially a ``gut rehab'' or total replacement of all building
systems without replacement of the building structure itself to a
replacement of a single system or piece of equipment to replacement of
several
[[Page 61700]]
systems in a building. DOE believes that given the $2.5 million or
``public building'' threshold, the fossil fuel-generated energy
consumption requirement will primarily apply to Federal commercial
buildings. The Department notes, however, that the rule could apply to
certain multi-family housing that costs at least $2.5 million that is
built by or for the use of any Federal agency, including buildings
built for the purpose of being leased by a Federal agency and
privatized military housing.
With a complete whole building renovation, the building is stripped
down to its structural elements and all new systems (including
envelope, lighting, HVAC, and water heating systems) are installed.
Generally, the designer of the renovation has less flexibility in
design than the designer of a new building. There are also limitations
on whole building renovations that may not be present with new
construction. The geometry, orientation, and location of the building
structure on the building lot are likely to be fixed. As noted, a whole
building renovation is one in which a building is gutted to the level
of its structural elements. The structural elements of the building
should not have a major impact on the fossil fuel-generated energy
consumption of the building. The fossil fuel reduction baseline and
requirements derived from EIA's CBECS, www.eia.doe.gov/emeu/cbecs,
relate to entire building fossil fuel-generated energy consumption, not
the fossil fuel consumption of individual systems. The level of fossil
fuel consumption impacted through a whole building renovation is
comparable to that consumption proposed in the appendices to this
proposed rule; i.e., both the subject energy consumption and the
maximum permitted amount of energy consumption are at the whole
building level. Therefore DOE proposes that the requirements and
methodologies applicable to new construction would be applicable to
major renovations that are whole building renovations.
Major renovations that are limited to system or component level
retrofits, have additional practical limitations for reducing fossil
fuel-generated energy consumption. Based on the DOE Buildings Energy
Databook, DOE has estimated the contribution of major energy related
systems to a commercial building's energy use for primary energy.\8\
---------------------------------------------------------------------------
\8\ Based on Table 3.1.4 of the DOE Buildings Energy Databook
(http://buildingsdatabook.eere.energy.gov/TableView.aspx?table=3.1.4).
Table III.1--Contribution of Energy Use by Major Systems
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
Lighting..................................................... 20
Space Heating................................................ 16
Space Cooling................................................ 15
Ventilation.................................................. 9
Refrigeration................................................ 7
Electronics.................................................. 4
Water Heating................................................ 4
Computers.................................................... 4
Cooking...................................................... 1
Other........................................................ 15
Adjust to SEDS *............................................. 5
----------
Total...................................................... 100
------------------------------------------------------------------------
* SEDS (States Energy Data System) is used by the U.S. Energy
Information Administration to resolve discrepancies between data
sources.
There have been improvements in the efficiencies of the systems and
components as compared to that which was present in the buildings
reported under the 2003 CBECS and 2005 RECS databases.\9\ A comparison
of equipment efficiency changes for chillers and boilers (two pieces of
equipment likely to be involved in a major renovation) from the
original 1975 ASHRAE Standard 90-75, Energy Conservation in New
Building Design, to the present FEMP-designated efficiency requirements
for these pieces of equipment showed cooling end-use savings of up to
34 percent and heating end-use savings of up to 11 percent.\10\ The
same analysis report shows a similar comparison for lighting indicated
a potential savings of up to 52 percent of the lighting load if
lighting power density requirements from ASHRAE 90.1-2010 were compared
with those found in ASHRAE 90A-1980. However, many Federal buildings
have likely already undergone some lighting renovation, so it may be
unlikely that a Federal building still has a lighting system based on
1980 standards. Therefore, even if the subject energy use is limited to
the energy use of the retrofitted system or component, the improvements
in energy efficiency as compared to the systems and components in the
typical CBECS building are not sufficient to meet the required
reductions. If the impact of the efficiency improvements between
current systems and components and those represented in CBECS is
considered in the whole building context, a typical commercial building
would realize whole building fossil fuel savings of 3 percent for
cooling, 2 percent for heating, and 7.5 percent for lighting.
---------------------------------------------------------------------------
\9\ See discussion below in Section C. Establishing and Using
the Baseline.
\10\ See Simulation Analyses in Support of DOE's Fossil Fuel
Rule for Single Component Equipment and Lighting Replacements by M
Halverson and W Wang of Pacific Northwest National Laboratory at
http://www.pnl.gov/main/publications/external/technical_reports/PNNL-22887.pdf.
---------------------------------------------------------------------------
For these reasons, for major renovations that are less than whole
building renovations (system or component level retrofits) DOE is
proposing establishing the maximum allowable energy use in fiscal years
2013 through 2029 based on the percentage of whole building energy
consumption represented by the retrofitted system or component. The
applicable value from the appendices in today's rule would be
multiplied by this percentage to arrive at the maximum allowable energy
use of the retrofitted system or component. DOE requests comment on
whether further direction would be required on how to distinguish
between a major renovation that is a whole building renovation and one
that is a system or component level retrofit, and requests comment on
how such a distinction could be made.
To further address issues related to major renovations, while
ensuring that a fossil fuel-generated energy reduction is attained
during a renovation, today's rulemaking would require both that Federal
agencies achieve specified energy efficiency levels before applying
off-site renewable energy generation and before petitioning for a
downward adjustment. Again, the proposed rule would distinguish between
whole building renovations and system and component level retrofits.
These changes are described further in the ``Off-Site and On-Site
Renewable Energy and Renewable Energy Certificates'' and ``Downward
Adjustments for Major Renovations'' sections.
4. Multiple Buildings
DOE received one comment from DOD-AF asking whether the $2.5
million threshold for applicability of the rule would apply to
individual buildings or to projects which may have two or more
buildings. (DOD-AF, No. 25C at p. 2)
DOE has preliminarily determined that the $2.5 million threshold
should apply to individual buildings to determine if they are covered
buildings under this rule. The statute mandates that the requirements
apply to ``buildings,'' not ``projects'' or ``developments.''
5. Leased Buildings
EISA 2007 modified the ECPA definition of ``Federal buildings'' to
include any building to be constructed by, or for the use of, any
Federal agency.
[[Page 61701]]
This term includes buildings built for the purpose of being leased by a
Federal agency and privatized military housing. (42 U.S.C. 6832(6)) In
addition, the NOPR limited application of the rule to renovations of
leased buildings to only those renovations for which a Federal agency
has significant control over the renovation design. 75 FR 63405.
NRDC commented that there is a disconnect between the rule scope
and the ECPA definition, which NRDC believes does not permit the
exclusion of buildings that have been built for the purpose of being
leased by a Federal agency. (NRDC, No. 14 at pp. 4-5) The U.S. Army
Corps of Engineers-North Atlantic Division (NAD) commented that it
seemed more appropriate to cover Federally leased buildings via the
existing EISA 2007 section 435 rules, which require new Federal agency
leases to be for ENERGY STAR labeled buildings, since existing
buildings will be difficult to retrofit to meet these fossil fuel
reductions. (NAD, No. 19 at p. 2) Department of Defense-Office of Under
Secretary of Defense (DOD-OUSOD) recommended against applying the rule
to any building whose design is not completely under the control of
Federal agencies, and suggested that the rule should just state this
principle and allow the agencies to apply their own judgment. (DOD-
OUSOD, No. 25A at p. 1) EEI asked if there would be a minimum lease
period. (EEI, No. 10 at p. 2)
DOE preliminarily has decided to remove the ``significant control''
provision for leased buildings covered under today's rule because the
ECPA definition of ``Federal building'' makes clear that the rule
applies only to buildings built specifically for the Federal
government. Significant control, therefore, is implicit in the
definition.
DOE is aware that compliance with today's rule for small buildings
or spaces that are leased for relatively short periods of time may not
be possible. DOE also recognizes that at least two Federal agencies
utilize contracts for short-term leases. Therefore, DOE requests
comment on whether there should be a minimum lease period or a minimum
rentable square footage threshold.
6. Federal Buildings Overseas
The DOD-N commented that including overseas facilities in the
definition of Federal building may lead to circumstances where the
agency does not have complete control over the design, or where other
technical factors challenge the practicality of meeting the fossil
energy reductions. (DOD-N, No. 25B at p. 8) DOE recognizes that several
agencies have buildings overseas and these buildings may be subject to
a variety of legal authorities specific to that agency. DOE intends
that the proposed rule would apply to the extent that the requirements
are consistent with applicable law. DOE does not intend for the rule to
cause any Federal agency to violate other legal authorities. This
proposed rule does not expressly address the extent to which it may be
applicable to buildings overseas as each individual agency is best
positioned to understand the various and sometimes unique authorities
that may be applicable to overseas buildings of that agency. In
applying the proposed rule to any given building, Federal agencies must
also decide whether the building meets the definition of Federal
building at 42 U.S.C. 6832(6) and either the requirement that the
building be a ``public building'' for which a prospectus is required,
or the requirement that the building or major renovation cost at least
$2.5 million. (42 U.S.C. 6834(a)(3)(D)(i)) For covered overseas
facilities, Federal agencies should use the U.S. climate zone most
similar to the location of the proposed building.
7. Residential Buildings
DOE received four comments related to the definition of residential
building categories. Lish commented that the rule definition should
include housing facilities owned and managed by Federal agencies, such
as the National Park Service, Forest Service, and other land management
agencies. (Lish, No. 13 at p. 1) The DOD-AF requested that dormitories
be removed from the proposed rule because of cost. (DOD-AF, No. 25C at
p. 6) DHHS-IHS-OEHE believes there is an inconsistency between the
reference to manufactured homes and mobile homes in the rule and in
RECS. (DHHS, No. 24 at p. 3)
DOE does not believe any changes to the proposed language in the
NOPR are needed as a result of these comments. The statute requires the
inclusion of all Federal buildings that are EISA-covered buildings.
Some of the building types discussed by commenters may not meet the
definition of ``public building'' at 40 U.S.C. 3301(a)(5) or may not
require a prospectus to Congress as described at 40 U.S.C. 3307, but
may meet the $2.5 million construction cost threshold. Some of the
referenced buildings may not meet either threshold. Finally, DOE does
not believe there would be an inconsistency between the reference to
manufactured and mobile homes in the rule and in the RECS database. For
purposes of the RECS database, manufactured and mobile homes are the
same product. They are both defined as a housing unit built to the
Federal Manufactured Home Construction and Safety Standards (24 CFR
part 3280), built on a permanent chassis and moved to a site.
8. Privatized Military Housing
DOD-AF stated that DOE should clarify that the rule does not apply
to privatized military housing because, in DOD-AF's view, privatized
military housing is not ``leased by a Federal agency.'' (DOD-AF, No.
25C at p. 2) In addition, DOD-AF is concerned that the proposed rule
may cause many AF Privatized Housing deals that have already been
closed to be canceled or renegotiated if they have to comply with the
fossil fuel reduction requirements. (DOD-AF, No. 25C at p. 1)
As noted above, EISA 2007 modified the ECPA definition of ``Federal
building'' to apply to any building to be constructed by, or for the
use of, any Federal agency. Such term shall include buildings built for
the purpose of being leased by a Federal agency, and privatized
military housing. (42 U.S.C. 6832(6)) In addition, Congress again
mentioned privatized military housing in ECPA when it specified that,
``with respect to privatized military housing, the Secretary of
Defense, after consultation with the Secretary [of Energy] may, through
rulemaking, develop alternative criteria to those established in
subclauses (I) [fossil fuel reduction requirements] and (III)
[sustainable design requirements] of clause (i).'' (42 U.S.C.
6834(a)(3)(D)(vi)) Although privatized military housing may not meet
the definition of ``public building'' at 40 U.S.C. 3301(a)(5), the
proposed rule would apply to privatized military housing with
construction costs of at least $2.5 million. As described in this
preamble, this cost threshold would apply on an individual building
basis.
9. Other
A few miscellaneous comments were submitted regarding the scope of
the rule that did not fit into one of the above subcategories. One
comment was submitted by an anonymous commenter and encouraged the use
of vacant buildings rather than new construction. (Anon, No. 27 at p.
1) There is nothing in ECPA that would prevent the reuse of vacant
buildings.
Earthjustice requested data on the number of new buildings and
renovations that are likely and projected to be covered by this rule.
(EJ, Public Meeting Transcript, at p. 69) For purposes of developing
this supplemental proposed rule, DOE assumed that the Federal
government
[[Page 61702]]
constructs 42 million square feet of new construction per year and
renovates 14.6 million square feet per year. This assumption is based
on the analysis of three years of construction data purchased by PNNL
as part of a commercial building construction dataset. The data is
described in ``Weighting Factors for the Commercial Building Prototypes
Used in the Development of ANSI/ASHRAE/IESNA Standard 90.1-2010'',
(Jarnagin and Bandyopadhyay, 2010). Data from the years 2007, 2008, and
2009 were used.
Based on these analyses and assumptions, DOE expects that 44.6
million square feet of Federal building stock would be subject to this
regulation each year. Over the next twenty years, DOE expects that this
rulemaking would affect approximately 892 million square feet of
Federal floor space. This represents less than 25 percent of the total
Federal building stock in 2030, and about a quarter of one percent of
the total residential and commercial building floor space in the U.S.
in 2030.
C. Establishing and Using the Baseline
The CBECS and RECS data, which can be found at http://www.eia.doe.gov/emeu/cbecs/contents.html and at http://www.eia.gov/emeu/recs/contents.html, are based on actual reported energy use over a
large sample of buildings, normalized for size to thousands of British
thermal units per square foot of floor space (kBtu/ft\2\). For purposes
of this rulemaking, the statute directs DOE to establish a baseline
based on the energy consumption in similar buildings in fiscal year
2003 as measured by CBECS and RECS.
One characteristic of buildings reported in the surveys is their
age, or vintage.\11\ The 2003 CBECS estimates of building vintage range
from pre-1920 buildings (representing the oldest) to the 2000-2003
years, which are the newest buildings in the 2003 CBECS.\12\ An
analysis of the CBECS data indicates that 39 percent of the surveyed
buildings were constructed prior to the publication of a standard
energy code; the first widely recognized building energy codes were
developed and published in 1975.\13\ Furthermore, DOE estimates that an
additional 17 percent of the surveyed buildings were built before the
architecture and construction industry recognized and used ASHRAE 90-75
nationally; i.e., 1980. Therefore, an estimated 56 percent of the
buildings surveyed were constructed prior to 1980.\14\ The ``typical
building'' in the 2003 CBECS was likely built between 1970 and 1979.
---------------------------------------------------------------------------
\11\ http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set1/2003pdf/a1.pdf.
\12\ Because of the criteria for buildings subject to the
requirements, DOE has initially determined the proposed requirements
would apply primarily to commercial buildings. As such, DOE has
focused this discussion on CBECS.
\13\ ASHRAE Standard 90-75, Energy Conservation in New Building
Design, August 1975.
\14\ DOE estimates that even more than 56% of the surveyed
buildings would have used 90-75, since the adoption of the 1980
standard was delayed two years.
---------------------------------------------------------------------------
The ASHRAE code is revised on a three year cycle. The version of
the ASHRAE code that is applicable to new Federal commercial buildings
for which design for construction began on or after August 10, 2012, is
ASHRAE 90.1-2007. 10 CFR 433.4(a)(2). As compared to ASHRAE 90-75,
ASHRAE 90.1-2007 has an energy efficiency improvement of approximately
30 percent.\15\ ASHRAE 90.1-2010 adds an additional energy efficiency
improvement of approximately 18.5%.\16\ Although the average building
in the 2003 CBECS would have been built to ASHRAE 90-75, it is
important to note that in the course of the lives of these buildings,
building system components have been replaced over time so that the
energy consumption as surveyed in 2003 will not be the same energy
level the building used when first constructed. Even so, the energy
efficiency improvements that are already required for the design of new
Federal buildings would achieve a substantial portion of the fossil
fuel-generated energy consumption reductions required in the interim
years up to FY 2020. DOE has data that would indicate that Federal
offices in Climate Zones 1a (Miami, Florida), 4c (Salem, Oregon), and
5a (Chicago, Illinois) as constructed to the requirements of the
Federal baseline standard (90.1-2010) are approximately at the 65%
Fossil Fuel Reduction level for government offices. Buildings
constructed to be 30% better than 90.1-2007 (as required in the Federal
standards if life-cycle cost-effective) will achieve more than 65%
Fossil Fuel Reduction level for government offices. This is especially
true considering that new Federal buildings must be designed to achieve
an energy efficiency improvement 30 percent beyond the referenced
ASHARE code to the extent life cycle cost effective.
---------------------------------------------------------------------------
\15\ ASHRAE Journal article titled ``35 Years of Standard 90.1''
in March 2010. http://www.ashrae.org/File%20Library/docLib/Public/20100625_ASHRAEDAJ10Mar0220100301.pdf.
\16\ See DOE's final determination notice on Standard 90.1-2010
at 76 FR 64904 (October 19, 2011) or http://www.gpo.gov/fdsys/pkg/FR-2011-10-19/pdf/2011-27057.pdf.
---------------------------------------------------------------------------
The CBECS and RECS data are reported at a high level. At the
highest level, the utility of the data is limited in terms of climate
zones and building types. However, CBECS and RECS microdata allow
additional analysis and refinement. Recognizing the importance of
climate on building energy use, as well as the limitations in CBECS and
RECS, in the NOPR, DOE asked several questions about refinements to the
CBECS and RECS data by different categories. The questions included
whether the baseline should be adjusted for climate, how to treat plug
and process loads, whether the rule should differentiate between fossil
fuels, and whether the rule should include a regional adjustment to the
fossil fuel component of the electric power mix. These and other issues
are further addressed below.
1. CBECS and RECS Baselines
As previously indicated, the statute directs DOE to establish a
baseline for the fossil fuel-generated energy consumption requirements
using CBECS and RECS data from fiscal year 2003. A preliminary survey
of the CBECS data indicates that the average building in the 2003 CBECS
was subject to the 1975 version of the ASHRAE building code for
commercial buildings.\17\
---------------------------------------------------------------------------
\17\ DOE has preliminarily determined that the building criteria
that determine applicability of the requirements would result in
primarily commercial buildings being subject. As such, DOE has
focused on commercial buildings.
---------------------------------------------------------------------------
The building type definitions for commercial buildings used in the
NOPR were based largely on the CBECS and RECS glossaries, with minimal
modifications for regulatory clarity. For a commercial building type
not listed in CBECS, the NOPR proposed that agencies establish a
baseline for the proposed design using the procedures in Appendix G,
Performance Rating Method, of ASHRAE Standard 90.1-2004. For
residential building types not listed in RECS, agencies would develop a
baseline using the Simulated Performance Alternative from section 404
of the IECC, 2004 Supplement Edition.
DOE requested comments on the building type categories and
definitions. Most of the comments DOE received related to how to
establish a baseline for building types not listed in the tables
derived from CBECS and RECS.
The American Society of Heating, Refrigeration and Air Conditioning
Engineers Standard 100 Revision Committee Standard (ASHRAE Standard 100
Committee) commented that an analysis by DOE's Oak Ridge National
Laboratory (ORNL) determined that there is sufficient data in CBECS to
establish energy consumption targets for 48 building types, and
recommended
[[Page 61703]]
that the rule be modified to do so. (ASHRAE, No. 8 at p. 1) ICC and the
Institute for Market Transformation (IMT) endorsed the uses of the
CBECS and RECS databases. (ICC, No. 11 at p. 3; IMT, Public Meeting
Transcript, No. 7 at p. 26) DHHS-IHS-OEHE supported DOE's
interpretation of the CBECS and RECS baselines and commented that
building type definitions are appropriate, but requested clarification
of the definition of health care (outpatient) facilities with
diagnostic medical equipment. (DHHS, No. 24 at pp. 1, 3)
EEI agreed with use of CBECS but commented that some buildings do
not neatly fall into a building category. (EEI, No. 10 at p. 3) AGA
encouraged the Department to develop more detailed procedures for
building types not directly represented in the CBECS and RECS data, and
believes the Department may engage stakeholders in this analysis. (AGA,
No. 16 at p. 3) NAD and DOD-AF commented that the CBECS and RECS data
does not cover some building types and larger buildings of a more
industrial nature, such as military buildings, and requested
information on how these will be included. (NAD, No. 19 at p. 1; DOE-
AF, No. 25C at pp. 3-4)
Regarding the use of ASHRAE or the IECC, EEI recommended that
ASHRAE 90.1-2004 should be allowed as an alternative to the IECC 2004
Supplement for residential buildings without baseline data. (EEI, No.
10.2 Cover Letter at p. 2) Several commenters noted that there would be
a disparity between the baselines generated from CBECS and the
baselines generated using ASHRAE 90.1-2004. (DHHS, No. 24 at p. 4;
National Nuclear Security Administration, No. 9 at p. 1; EEI, No. 10 at
p. 3; DOD-AF, No. 25C at p. 4) The Gas Technology Institute (GTI)
proposed that DOE amend the ASHRAE Performance Rating Method to create
a single reference building in order to be consistent with the CBECS
database methodology, noting that DOE's Home Energy Score Tool
methodology would be a superior approach. (GTI, No. 22 at p. 12) NIBS
supported DOE's proposal to use Appendix G of ASHRAE Standard 90.1 and
the IECC Simulated Performance Alternative, stating that these are
probably the best alternatives to CBECS and RECS. However, NIBS noted
there could be some issues with the quality of the baselines produced
using these methods, and suggested certification of modelers and use of
the COMNET protocols. (NIBS, No. 12 at p. 2)
ICC and IMT stated that the CBECS and RECS data are in need of
upgrading. NIBS encouraged DOE to expand sample sizes and improve the
surveys going forward. (NIBS, No. 12 at pp. 1-2) DOE regularly updates
and improves upon the CBECS and RECS. The versions of these surveys
that DOE chose to use in today's rule (2003 CBECS and 2005 RECS) were
based on Congressional direction in EPCA. DOE chose to use 2005 RECS
data because the RECS was conducted in 2001 and 2005 but not 2003.
DOE proposes to retain CBECS as the baseline for commercial
buildings and RECS as the baseline for multi-family high-rise and low-
rise residential buildings with one exception. In the NOPR, DOE
proposed to include the category ``multi-family in 5 or more units'' in
the commercial building and multi-family high-rise residential building
requirements. A ``multi-family high-rise residential building'' is a
residential building that contains three or more dwelling units and
that is designed to be four or more stories above grade. It is possible
that a building could have four or more stories above grade, but fewer
than five units. DOE believes that such buildings designs would be rare
and would have energy consumption patterns similar to such buildings
with five or more units. To avoid a potential gap in coverage of the
building types, DOE proposes to use ``multi-family high-rise
residential building'' in place of ``multi-family in 5 or more units.''
In addition, regarding the definition of health care (outpatient)
facilities with diagnostic medical equipment, the reference to
diagnostic equipment is from the current CBECS building types under
which agencies have been reporting. DOE proposes that agencies continue
to apply that term consistent with CBECS reporting.
In response to comments, DOE preliminarily has decided to use the
analysis from ORNL for the ASHRAE Standard 100 Revision Committee to
expand the CBECS data from the twelve building categories used in the
NOPR to the 48 commercial building types used in today's rule. (As
noted in the NOPR, the phrases ``principal building activity'' and
``building types'' are used interchangeably in CBECS and RECS
documents. For the sake of consistency, this document only uses the
phrase ``building type.'') While ORNL was conducting the climate
adjustment for DOE, as DOE indicated it would conduct in the NOPR, it
coordinated its work with the ASHRAE Standard 100 Revision Committee,
which had a need for similar work. While developing the climate
adjustment method, ORNL also developed a methodology to parse the CBECS
and RECS microdata into more building types. As a result, as part of
its public comment on today's rulemaking, the ASHRAE Standard 100
Revision Committee requested that DOE use these building types.
Although the reduction requirement for multi-family high-rise
residential buildings comes from the RECS database, DOE proposes to
include the requirements in the tables for 10 CFR part 433 to maintain
the scope of coverage of part 433 versus part 435 building types.
2. Climate Adjustment
The maximum allowable fossil fuel-generated energy consumption
values in Tables 1 and 2 of the NOPR were based on national averages
not adjusted for climate. The NOPR noted that the limited number of
buildings surveyed by CBECS and RECS data does not always allow for a
direct estimate of building energy use by climate zone and building
type because there are only a few surveyed buildings that fit into some
building type/climate zone groups. 75 FR 63406. However, DOE noted that
it believed a climate adjustment is necessary to provide reasonable
baselines and, therefore, stated that DOE is developing fossil fuel-
generated reduction requirements based on building type and then
applying a climate zone as defined in the baseline energy efficiency
standards at 10 CFR parts 433 and 435. 75 FR 63406. DOE requested
comments on including a climate adjustment.
Most of the comments DOE received regarding the climate adjustment
were favorable. The ASHRAE Standard 100 Committee recommended that the
maximum allowable consumption values for each of the CBECS and RECS
building types be adjusted for each of the 16 climate zones developed
by DOE's Pacific Northwest National Laboratory (PNNL) based on a
simulation of prototype buildings meeting ASHRAE Standard 90.1-2004
developed by DOE's National Renewable Energy Laboratory (NREL).
(ASHRAE, No. 8 at p. 1) NIBS recommended utilizing the climate
normalization techniques developed by EPA for the ENERGY STAR program.
(NIBS, No. 12 at p. 4) ICC states that it believes that it is sensible
to take into account regional climate variations, such as those
recognized in the International Energy Conservation Code. (ICC, No. 11
at p. 2) DHHS-IHS-OEHE and the American Institute of Architects (AIA)
urged DOE to consider regional and climatic factors, and DHHS-HIS-OEHE
suggested using the climate zones identified in ASHRAE 90.1 and IECC.
(DHHS, No. 24 at p. 1; AIA, No. 15 at p. 2) GTI recommended the DOE
Home
[[Page 61704]]
Energy Score Tool used for existing home ratings. (GTI, No. 22 at p.
11) The National Park Service, Alaska Region (NPS-Alaska), recommended
an alternative table of Alaskan climate zones. (NPS-Alaska, No. 6, p.
1) EEI questioned how the adjustments are going to be calculated to
address the limitations of the CBECS and RECS data. (EEI, No. 10 at p.
3) AGA commented that a climate adjustment is logical for some loads,
such as space conditioning, but requested more information about DOE's
methodology. (AGA, No. 16 at p. 4)
DOE proposes to include a climate adjustment. A climate adjustment
places buildings in different climates on a more level-playing field.
Under the proposed climate adjustments, buildings would have to achieve
reductions commensurate to a baseline appropriate for their climate
zone rather than a national average baseline. As a result, buildings in
cold climates would have a higher target to account for the increased
energy use associated with a cold climate, and buildings in warmer
climates would have a lower target. This approach would ensure that
buildings in both cold and warm climates achieve 55 percent reductions
based on a climate-adjusted baseline, rather than the building in the
cold climate having to achieve a deeper percentage reduction and a
building in a warm climate having to achieve a lesser percentage
reduction to meet the same absolute target based on a national average.
For example, assuming a CBECS or RECS national average baseline
fossil fuel use equals 100 kBtu/sq.ft. for a given building, at a 55
percent reduction for FY 2010-14, the target fossil use becomes 45
kBtu/sq.ft. However, a building in a cold climate may actually use more
than the national average, perhaps 150 kBtu/sq.ft. The same building in
a warm climate may actually use less, perhaps 50 kBtu/sq.ft. To meet
the 55 percent reduction for the FY 2010-14 national average target of
45 kBtus/sq.ft. without a climate adjustment, a building in a cold
climate must achieve a reduction of 105 kBtus/sq.ft. (which would be an
actual 70 percent reduction), while the same building in a warm climate
would need to achieve a reduction of only 5 kBtus/sq.ft. (which would
be an actual 10 percent reduction).
Using the above example, the climate adjustment in today's rule
would set the baseline at 150 kBtu/sq.ft. for the cold climate example,
so a 55 percent reduction would make the target 67.5 kBtu/sq.ft.
instead of 45 kBtu/sq.ft. In the warm climate example, the baseline
would be 50 kBtu/sq.ft., and a 55 percent reduction would make the
target 22.5 kBtu/sq.ft. instead of 45 kBtu/sq.ft. In other words,
buildings in both the warm and cold climate zones have to achieve 55
percent reductions but must meet that baseline relative to the climate
adjusted baseline for the appropriate climate. The same logic applies
to the 65, 80, 90, and 100 percent reductions. All covered buildings
designed in FY 2030 or later would be required to meet the 100 percent
reduction, regardless of climate.
The maximum allowable fossil fuel-generated energy consumption in
proposed Tables 1-4 of Appendix A of both part 433 for commercial
buildings and multi-family residential buildings and part 435 for low-
rise residential buildings include adjustments for climate. The climate
adjustments were developed by ORNL. ORNL developed national energy use
intensities (EUIs) for over 50 building types from CBECS and RECS, and
used zonal EUI ratios derived from building simulation modeling
performed by the NREL to parse the building types into 16 different
climate zones. The procedure is described in more detail in
``Derivation of Federal Building Fossil Fuel Energy Use Reduction
Targets,'' (ORNL/TM-2011/84, http://hyperion.ornl.gov/pubs/EISATargets.pdf). DOE's climate zone map is produced below for
reference. The county-by-county climate zones are defined in the
baseline standard for 10 CFR part 433--ASHRAE Standard 90.1-2010.
[[Page 61705]]
[GRAPHIC] [TIFF OMITTED] TP14OC14.000
3. Plug and Process Loads
In addition to fossil fuel-generated energy consumption used for
building-related functions such as lighting, HVAC, and envelope,
equipment related to the use that occurs within the building also
consumes fossil fuel-generated energy. This includes plug loads such as
office equipment, personal computers, cash registers, and other such
equipment that are typical to buildings. However, some building types
also house process loads that are very energy-intensive relative to
other building-related energy use.
In the NOPR, DOE acknowledged that inclusion of plug and process
loads in the methodology may make it more difficult to achieve the
mandated fossil fuel-generated energy consumption reductions. DOE noted
that all building energy consumption, including plug and process load
consumption, is included in the baseline CBECS and RECS data and,
therefore, proposed that plug and process loads would be subject to the
fossil fuel reductions.
DOE requested comments on how the proposed rule could be designed
such that the assumptions used in the whole building simulations would
accurately reflect the final building design and operation, including
plug and process loads. 75 FR 63410. In this SNOPR, DOE clarifies that
CBECS does not include building types with energy use dominated by
process loads.
Several comments were submitted relating to plug and process loads.
Most comments received on plug and process loads expressed concerns
about including process loads in the fossil fuel-generated energy
consumption baselines, with particular concern about including energy-
intensive process loads. EEI, DHHS-IHS-OEHE, DOD-AF, ASHRAE 100, and
AGA commented that process or plug and process loads should not be
included in the calculations since these loads do not directly
represent the building design attributions. (EEI, No. 10 at p. 6; DHHS,
No. 24 at p. 4; DOD-AF, No. 25C at p. 5; ASHRAE, No. 8 at p. 2; AGA,
No. 16 at p. 4)
DOE received a number of comments from DOD suggesting that because
many DOD facilities do not map to the CBECS building types, DOE should
remove the process load component from the calculations or otherwise
treat certain buildings with process loads differently. (DOD-AF, No.
25C at p. 4; DOD-OUSOD, No. 25A at p. 2; NAD, No. 19 at p. 1;DOD-N, No.
25B at p. 9) Otherwise, DOD-N noted, petitions for downward adjustment
of the reduction requirement could consist predominantly of buildings
dominated by process loads. (DOD-N, No. 25B at pp. 6, 9, 12) DOD-N
recommended standardized building occupancy and use assumptions. (DOD-
N, No. 25B at p. 6)
CBECS and RECS do not include building types with what are
generally understood to be energy-intensive process loads. Process
loads are typically metered separately and do not include energy
consumed for maintaining comfort and amenities for the occupants of the
building (including space conditioning and lighting for human comfort
or convenience),
[[Page 61706]]
commercial equipment and office-related plug loads, and other loads
whose energy use is included in the building categories in CBECS and
RECS (such as medical equipment and commercial refrigeration). Energy-
intensive process loads would include, but not be limited to,
activities such as manufacturing, painting, welding, metal work,
fabricating, assembly, and data centers.
In the proposed rule, the baseline for building types not in CBECS
or RECS would have been determined by a whole building simulation, and
the process loads would have been subject to the fossil fuel-generated
energy consumption reduction requirements. DOE understands that it
could be much more difficult for agencies designing buildings with
energy-intensive process loads to comply with the requirements of
today's rule than agencies designing buildings without process loads.
It is more difficult to reduce process energy consumption, and the
process activity is critical to the agency's purpose for the building.
In addition, for buildings with energy-intensive process loads, the
process loads tend to dominate the energy consumption of the building.
As a result, DOE acknowledges that agencies with buildings with such
process loads may be the agencies most likely to petition DOE for a
downward adjustment of the standard if the process loads were subject
to the fossil fuel reduction requirements. DOE also notes that plug and
process loads are excluded from the baseline energy efficiency
requirements for Federal commercial and multi-family high-rise
residential buildings. (See 10 CFR 433.101)
Based on these considerations, DOE proposes that for building
categories and types not listed in CBECS with energy-intensive process
loads, the process loads should not be subject to the fossil fuel-
generated energy consumption reduction requirements of this rule. These
building types would remain subject to today's requirements by
separating the process loads from the building and building-related
loads as follows:
1. Federal agencies with buildings with energy-intensive process
loads would choose the CBECS building type (from Tables 1-4 of Appendix
A) that most resembles the building as if it had no process loads. For
example, industrial facilities and airplane hangars for painting/
plating would generally map to warehouses, and data centers would
generally map to laboratories.
2. Agencies would then find the appropriate target from Tables 1-4
based on climate zone and fiscal year in which design for construction
began for the underlying building type selected in Step 1. Because
Tables 1-4 do not include these process loads, agencies would add to
the target the estimated fossil fuel-generated energy use of the
process loads to determine the maximum allowable fossil fuel-generated
energy consumption for the proposed building. When estimating the
process load, the agency would use the electricity fossil fuel
generation factor and the electricity source energy factor defined in
this rule to convert electricity into kBtu/sq.ft.
3. To determine compliance, agencies would estimate the energy use
and fossil fuel-generated energy consumption of the proposed building
using the equation in section 433.201(a) (for CBECS) or 435.201(a) (for
RECS), add the estimated process load from Step 2, and compare the
result to the maximum allowable fossil fuel-generated energy
consumption.
DOE believes that this calculation for buildings with process
loads, along with the expanded list of building types described
earlier, would make it unnecessary to develop an alternative baseline
using a simulated model as was proposed in the NOPR. The expanded list
of building types is comprehensive and should cover virtually all
building types and categories in the Federal sector. Agencies should be
able to find a building type from the expanded list that closely
resembles the building as if there were no process loads. Thus, DOE has
deleted provisions in the proposed rule to develop alternative
baselines using Appendix G of the Performance Rating Method in ASHRAE
Standard 90.1-2004 or the IECC Simulated Performance Alternative. DOE
believes this approach is simpler and clearer than the method proposed
in the NOPR, and addresses the concerns and comments that were
submitted.
DOE seeks comment on three specific issues related to process
loads:
1. DOE recognizes that not all building categories or building
types are equally represented in CBECS data. Additionally, energy use
can vary widely within the same building category or type. Therefore,
DOE requests additional comment on the treatment of process loads for
building categories that are under-represented in CBECS, or where
energy use varies widely. DOE also seeks comment on what parameters to
use when determining that a building is under-represented in CBECS.
2. In addition, DOE recognizes that buildings with high process
loads must increase the capability of their HVAC systems beyond what
the building would require absent the building's process-related
mission. Therefore, DOE seeks further comment on whether and how to
account for the increment of supplemental HVAC required to condition
buildings with high process loads.
3. DOE understands that agencies may not be uniformly equipped to
submeter their process loads for the purposes of calculating their
required fossil fuel reduction. Therefore, DOE requests comment on the
degree to which agencies presently submeter process loads.
Concerning plug loads, GTI suggested that the additional
variability in plug loads is a legitimate issue, but suggested that it
is an issue that can be addressed by a good engineering analysis during
the design phase. (GTI, No. 22 at p. 12) EEI stated that the
methodology must treat plug loads the same for purposes of both the
baseline and the proposed design. (EEI, No. 7 Public Meeting
Transcript, at p. 33-35)
Plug loads are included in the building types reported by the CBECS
and RECS databases. In addition, they generally do not dominate the
building energy profiles like some process loads, and it is easier to
achieve plug load reductions through the use of ENERGY STAR and other
energy efficient products than it is to reduce process loads. As a
result, DOE preliminarily has decided that plug loads would continue to
be included in the baseline and would be subject to the fossil fuel
reduction requirements.
4. Differentiate Between Fossil Fuels
Some fossil fuels produce higher CO2 emissions than
other fossil fuels, with coal being the highest and natural gas being
the lowest. The NOPR noted that ECPA makes no distinction between
fossil fuels for purposes of the required fossil fuel-generated energy
consumption reductions addressed by this rule. 75 FR 63406 While the
statute does not specifically direct DOE to consider variation in
fossil fuels for purposes of this rulemaking, DOE stated that the
statute does not prohibit DOE from taking the variation into account.
With that in mind, DOE requested comments on whether all fossil fuels
should be treated equally or whether each should be treated differently
based on CO2 emissions or some other factor.
DOE received several comments about differentiating between fossil
fuels. The comments varied, although most favored differentiating
between fossil fuels. DHHS-IHS-OEHE supported taking into consideration
the actual CO2 emission factors of fossil fuel types and
whether or not a fuel comes from
[[Page 61707]]
domestic or imported sources. (DHHS, No. 24 at p. 2) DOD-N, National
Rural Electric Cooperative (NREC) and the General Services
Administration--Office of Federal High Performance Green Buildings
(GSA) also supported weighting fossil fuels based on their respective
carbon footprints. (DOD-N, No. 25B at p. 4; NREC, No. 28 at p. 2; GSA,
No. 26 at p. 2) The Office of the Deputy Under Secretary of Defense,
Installations and Environment, Facilities Energy Directorate (ODUSD)
believes such an approach would help, but recommended a thorough study
of the potential cost impact prior to implementing such a policy. (DOD-
OUSOD, No. 25A at p. 3) GTI recommended that fossil fuel types be
distinguished by their cost, efficiency and CO2 content.
(GTI, No. 22 at p. 13) The AGA commented that the DOE should restrict
its consideration only to fuel cycle issues, not carbon contributions
of fuel cycles, because greenhouse gas emissions are not the dominant
issue in this rulemaking. (AGA, No. 16 at pp. 4-5)
DOE notes that ECPA establishes building design requirements based
on ``fossil fuel-generated energy consumption'' of a building, not
greenhouse gas emissions of a building or other factors that may
differentiate fossil fuels. Upon reconsideration of the issue as it was
proposed in the NOPR, DOE believes that applying the reduction
requirements equally to all fossil fuel types is the best
interpretation of the statute. As a result, DOE is not differentiating
between fossil fuels in today's rulemaking.
5. Regional Fossil Fuel Factors
To determine the fossil fuel-generated energy consumption of the
buildings reported in CBECS and RECS, the fossil fuel component of the
electricity used by the building was added to the building's direct
fossil fuel consumption. To calculate the fossil fuel component of site
electricity use, site electricity was multiplied by the percentage of
electricity nationally that is produced from fossil fuels, referred to
as the electricity fossil fuel generation factor for purposes of this
rule. The factor was obtained by summing the electricity generated from
fossil fuels (coal, oil, natural gas, and other gases) from Table 3.2.A
of the Energy Information Administration (EIA) 2012 Electric Power
Annual Report (http://www.eia.gov/electricity/annual/html/epa_03_02_a.html) and dividing it by the total electricity produced in
the U.S. 75 FR 63407. According to Table 3.2.A, for 2003, the fossil
fuel generation factor was 0.71, meaning that about 71 percent of all
electricity in the U.S. is generated from fossil fuels. DOE chose to
use the 2003 value in accordance with the statutory mandate that
buildings be designed so that the fossil fuel-generated energy
consumption of the buildings is reduced as compared with such energy
consumption by a similar building in fiscal year 2003 (as measured by
CBECS or RECS.) In addition, DOE notes that the fossil fuel generation
factor has varied from 0.71 in 2003 to a peak of 0.74 in 2007 and back
to 0.71 in 2012. DOE indicated in the NOPR that it was considering a
regional approach to establishing the fossil fuel fraction associated
with electricity, and asked for comments.
Public comments were mixed, some supporting and some opposing the
use of a regional fossil fuel factor. EEI questioned whether
adjustments for regional electricity use would be made by census
region, sub-census region, power pool region, by state, or by some
other form of disaggregation. (EEI, No. 10 at p. 3) GSA also supported
a regional approach. (GSA, No. 26 at p. 1) AGA supports use of a
regional fossil fuel mix for electric generation based on eGRID
subregional level data. (AGA, No. 16 at p. 4) The ICC supported the
current proposed approach of using the national average, stating that
it would be more efficient to simplify the requirements and smooth the
differentials between buildings by using a national average fossil fuel
generation factor. (ICC, No. 11 at pp. 2-3) GTI stated that for the
purposes of national rulemaking, national average factors would be
consistent with some of DOE's prior methodology and protocols. (GTI,
No. 22 at p. 7) DHHS-IHS-OEHE and NIBS also support the national
average fuel mix. (DHHS, No. 24 at p. 2; NIBS, No. 12 at p. 2) NAD
stated that the electricity source energy factor and electricity fossil
fuel-generation factor should be based on a regional approach. (NAD,
No. 19 at p. 1)
The difference in regional fossil fuel factors would not increase
overall fossil fuel reductions, but would simply shift where reductions
come from. Buildings in regions with high fossil fuel content in their
electric power mix would require deeper reductions in electricity use
than buildings in regions with lower fossil fuel content in their
electric power mix. For agencies with buildings across the nation, the
fossil fuel content of their buildings, in the aggregate, would tend
toward the national average. Introducing regional differences adds
complexity to the rule with little additional benefit.
Finally, the source of electricity used in a region may be
different than the source of electricity generated in that region.
Power may be generated in one place, but shipped via the grid to
another area for use. Utilities may purchase power from another utility
or a merchant plant at a distant location. While data on power
generation is readily available, data on where the electricity in an
area comes from and how it was produced is more difficult to trace.
This leads to the question of what the appropriate breakdown of region
would be--utility district, state, power pool area, or interconnection
grid.
Based on these preliminary conclusions, DOE proposes to use the
national electric power mix in determining the fossil fuel portion of
electricity consumption in the rule. Using the national average fossil
fuel factor is simpler for Federal agencies and DOE believes it would
yield equivalent results. In addition, DOE proposes to calculate and
post the value of the fossil fuel generation factor to be used each
year on the FEMP Web site and as an update to this regulation\1\ rather
than requiring agencies to refer to the Buildings Energy Data Book on
an annual basis as was proposed in the NOPR.
---------------------------------------------------------------------------
\1\ http://energy.gov/eere/femp/federal-energy-management-program.
---------------------------------------------------------------------------
6. Marginal Source of Electricity
The NOPR stated that reductions in future electricity demand are
likely to cause electric utilities to reduce the power supplied by
those electricity generation units or sources that have the highest
marginal costs. DOE believes that over the short and long-run, fossil
fuel-powered units would have higher marginal costs than units powered
by nuclear, hydropower, or renewable energy sources. DOE invited
comments on whether marginal factors to estimate the fossil fuel
consumption associated with electricity consumption should be
considered, on grounds that marginal factors might better reflect the
fossil fuel portion of new generating capacity that is being built. 75
FR 63407. For example, if almost all new electricity generation
capacity built for new demand in the coming years is from non-fossil
sources of energy, then it might be reasonable for new Federal
buildings to reduce only their locally consumed fossil fuel consumption
and not focus on reducing electricity demand to meet the requirements
of the rule.
AGA commented that the rule should not use marginal electricity
generation, noting that the most equitable means of including new
``marginal'' generation into the electric grid is as additional
[[Page 61708]]
supply to the average mix. (AGA, No. 16 at p. 4) DOD-N recommended
using marginal fossil fuel reduction factors, averaged nationally.
(DOD-N, No. 25B at p. 4) NIBS commented that it would be appropriate to
consider the time of such electricity use and its likely impact on the
fossil fuel mix. (NIBS, No. 12 at p. 2) EEI was concerned that the
electric grid is changing and the tools used by DOE in the rule are
already out of date. (EEI, Public Meeting Transcript, No. 7 at p. 45)
EEI commented that the source energy methodology looks backwards and
does not account for the dynamic changes to electric generation that
will be occurring over the next 20-30 years, and that DOE's 71 percent
electric source factor nationwide is outdated and does not account for
the states that have renewable portfolio standards. (EEI, No. 10 at p.
3)
DOE has considered the issue and is proposing not to use marginal
electric source factors. The mix of new electric generating capacity
added to the grid varies year-to-year. However, the amount of
electricity generated from fossil fuels on an annual basis has varied
from 68 percent to 72 percent over the past fifteen years, with no
discernible trend. If new, marginal generating capacity were steadily
becoming more fossil fuel-dependent or less fossil fuel-dependent,
there would be a trend in how much electricity is produced from fossil
fuel on an annual basis, but such a trend is not discernible in the
current data. In addition, the load growth represented by buildings
covered by this rule is likely too small relative to overall electric
utility load growth to change utility decisions on investment in new
generating resources. Furthermore, as the fossil fuel reduction
requirement increases toward 100 percent for buildings for which design
for construction begins in FY2030, the marginal factors will be less
relevant because all fossil fuel use will be eliminated in any event.
For these reasons DOE believes it would be best to continue to use
average generating capacity for the fossil fuel generation factor
rather than marginal generating capacity.
7. Residential Common Areas
The NOPR stated that the RECS baseline for multi-family residential
buildings only includes the energy use for individual dwelling units,
not any associated conditioned common areas. DOE proposed applying the
RECS-derived fossil fuel requirements to all applicable floor space,
including both common and non-common areas. 75 FR 63408. Because common
areas often have a lower energy intensity than individual dwelling
units, using only non-common areas in the calculation for the proposed
design's fossil fuel consumption is likely to result in a slightly
higher maximum allowable fossil fuel-generated energy requirement than
using both common areas and non-common areas in the calculation. This
approach will make it easier for building designers to demonstrate
compliance for a residential building overall. Because common areas
account for only a small fraction of the floor space in multi-family
residential buildings, however, the actual effect on fossil fuel
reductions would be minimal.
AGA and DHHS-IHS-OEHE supported application of the energy use
values for non-common areas to all applicable floor space, common and
non-common. (AGA, No. 16 at p. 4; DHHS, No. 24 at p. 4) Based on the
rationale provided in the NOPR and the supporting public comments, this
proposed rule continues the approach proposed in the NOPR.
8. Major Renovations
As noted previously in this document, the CBECS and RECS data that
provide the baseline for today's requirement are building level data.
For major renovations that are whole building renovations, the maximum
fossil fuel-generated energy consumption values generated from CBECS
and RECS provide requirements that are comparable to the energy
consumption of the whole building renovation. However, DOE believes
that the maximum consumption levels presented in the proposed tables
may not be appropriate for major renovations that are system or
component level retrofits. As such, DOE is proposing that the
requirements for system and component level retrofits would be based on
percentage of whole building fossil fuel consumption represented by the
retrofitted system or component. The applicable table value would be
multiplied by this percentage to arrive at the maximum allowable energy
use of the retrofitted system or component. DOE requests comment on
this approach, as well as comment on other approaches that could be
used to determine the requirement for system and component level
retrofits.
9. Other
Two additional comments were submitted that do not fit into one of
the scope subcategories. EEI asked how mixed-use buildings would be
treated. (EEI, Public Meeting Transcript, No. 7 at p. 19) The proposed
rule required agencies to perform a building area-weighted average in
order to determine the appropriate baseline for mixed-use buildings. 75
FR 63407. The specific method to do this is found in section
433.200(d)(3) of the proposed rule.
NPGA thought a paradox existed in that the required reductions
identified for years preceding FY 2030 may change and yet fossil fuel
energy consumption reductions may not apply to Federal agencies until
the regulations are finalized. (NPGA, No. 23 at p. 4) DOE notes that
the specific percentage reduction requirements by fiscal year are
defined by statute and cannot be changed by DOE. In the NOPR, DOE
stated that DOE intends to revise the maximum allowable fossil fuel-
generated energy consumption tables, which are based on the required
percentage reductions in the statute, to adjust for climate. 75 FR
63408. DOE has done this in today's rulemaking. DOE acknowledges that
the specific means to obtain the FY 2030 goal are not known today, but
believes that advances in design practices and technology over the next
20 years will make the requirement increasingly attainable.
D. Methodology To Determine Compliance
Once the appropriate baseline fossil fuel-generated energy
consumption has been determined for commercial buildings and multi-
family high-rise residential buildings and low-rise residential
buildings, this rule provides the statutorily-mandated reduction
requirements to those baseline consumption values. As noted in the
NOPR, rather than setting standards by only listing the percentage
reductions required, DOE has decided to deduct the statutorily-required
percent reductions from the CBECS and RECS baselines to establish the
maximum allowable fossil fuel-generated energy consumption for each
building type and climate zone. 75 FR 63408. Establishing today's
standard as an absolute value should simplify agency use and
interpretation of this proposed rule.
1. Whole Building Simulation
To determine energy use in the proposed design, DOE proposed in the
NOPR that the fossil fuel-generated energy consumption of a proposed
new Federal building or major renovation of a Federal building be
estimated using the Performance Rating Method found in Appendix G of
ANSI/ASHRAE/IESNA Standard 90.1-2004 for commercial and multi-family
high-rise residential buildings, and the IECC 2004 Supplement for low-
rise buildings. 75 FR 63409. Because of the complexity involved in
estimating fossil fuel-
[[Page 61709]]
generated energy consumption, this requirement would effectively
require the use of a whole building simulation tool, which can be
difficult and increase cost. As a result, DOE invited comments on
alternatives to a whole building simulation.
The ICC endorsed the use of the Simulated Performance Alternative
found in IECC 2004, but suggested that the rule reference more recent
versions. (ICC, No. 11 at p. 3) NRDC and NIBS commented that DOE should
work with the energy modeling industry to standardize modeling
assumptions and results provided by the simulation programs, and
eventually certify modeling programs and users. (NRDC, No. 14 at p. 16;
NIBS, No. 12 at p. 2) The International District Energy Association
(IDEA) was concerned that the Performance Rating Method in Appendix G
of ASHRAE Standard 90.1-2004 is based on energy costs, as it modifies
the Energy Cost Budgeting Method in Chapter 11 of ASHRAE Standard 90.1.
(IDEA, No. 21 at p. 2) DOE proposes that the estimated fossil fuel use
of the proposed building be calculated in accordance with the
provisions relating to ``the proposed design'' in the Performance
Rating Method in Appendix G of ASHRAE 90.1-2007. Provisions in Appendix
G relating to the generation of a baseline or the Energy Cost Budgeting
Approach are irrelevant to today's rule.
As stated in the NOPR, the Performance Rating Method in Appendix G
of ASHRAE 90.1 and the IECC Simulated Performance Alternative are
already prescribed at 10 CFR parts 433 and 435 for determining whether
covered new Federal buildings meet the required energy efficiency
standards in those sections. In addition, whole building simulations
are already performed today for most medium- and large-sized buildings
to accurately estimate loads for purposes of sizing HVAC equipment and
to evaluate buildings under voluntary advanced building programs. Based
on this and the comments received, DOE is not changing this approach in
today's rule.
On August 10, 2011, DOE published a final rule updating Federal
energy efficiency baseline standards in 10 CFR part 435 for low-rise
residential buildings to the 2009 IECC. 76 FR 49279. On July 19, 2013,
DOE published a final rule updating the Federal energy efficiency
baseline standard in 10 CFR part 433 for commercial and multi-family
high-rise buildings to ASHRAE Standard 90.1-2010. 78 FR 40945. DOE also
acknowledges the need to improve work with the energy modeling industry
to standardize assumptions and certify programs and users, but such
collaboration is outside the scope of this rule. DOE and ENERGY STAR,
drawing upon their experience with EnergyPlus Software and Target
Finder, respectively, are participating with the Commercial Energy
Services Network (COMNET, www.comnet.org) to develop energy performance
modeling guidelines and procedures.
DOE recognizes that the whole building approach likely is not
appropriate for major renovations that are limited to system or
component level retrofits. As noted previously, for major renovations
that are less than whole building renovations (i.e., system or
component level retrofits) DOE is proposing establishing the maximum
allowable fossil fuel consumption in fiscal years 2013 through 2029
based on the percentage of whole building consumption represented by
retrofitted system or component. The applicable table value would be
multiplied by this percentage value to arrive at the maximum allowable
fossil fuel consumption of the retrofitted system or component. For
determining compliance, DOE is proposing basing the subject fossil
fuel-generated energy consumption on the system or component as
retrofitted. This would require the design engineer to estimate the
energy consumption of the systems or components as renovated.
2. Off-Site and On-Site Renewable Energy and Renewable Energy
Certificates
The NOPR stated that in order to meet the fossil fuel-generated
energy consumption reduction requirements mandated by ECPA, fossil
fuel-generated energy consumption could be offset with the use of
renewable energy. 75 FR 63410. DOE also recognized that there may be
physical limitations to the amount of on-site renewable electricity
that can be produced, and it may be more affordable for an agency to
purchase electricity from centralized renewable energy-generation
facilities. DOE was concerned, however, that the purchase of renewable
energy-generated electricity via Renewable Energy Certificates or
direct Power Purchase Agreements (PPAs) may simply reduce the amount of
renewable energy available for purchase by other entities within the
U.S. and may not necessarily lead to an overall decrease in domestic
fossil fuel-generated energy consumption. In addition, DOE was
concerned that the purchase of Renewable Energy Certificates does not
involve a long-term binding agreement and can readily be cancelled. DOE
indicated in the NOPR that it was leaning toward allowing direct PPAs
with a long-term contract to count toward meeting the fossil fuel-
generated energy consumption reduction requirements, but not allowing
Renewable Energy Certificates. 75 FR 63410.
Numerous comments were submitted about Renewable Energy
Certificates and PPAs. The Renewable Energy Markets Association (REMA)
supported the use of Renewable Energy Certificates and stated that as
demand outstrips supply, more renewable energy generation will be
built. (REMA, No. 20 at pp. 1-2) REMA also indicated that the purchase
of Renewable Energy Certificates is allowed to meet other Federal
requirements, and commented that PPAs should be allowed only if the
renewable energy attributes (the associated Renewable Energy
Certificates) are purchased by the agency as well. (REMA, No. 20 at pp.
1-2)
NAD and NREC encouraged the use of Renewable Energy Certificates to
stimulate demand for renewable energy generation. (NAD, No. 19 at p. 2;
NREC, No. 28 at p. 2) EEI recommended use of both Renewable Energy
Certificates and PPAs with a minimum contract term. (EEI, No. 10 at p.
8) The National Nuclear Security Administration (NNSA) commented that
Renewable Energy Certificates should be allowed if the renewable energy
was generated on Federal property or, from any source, if the contract
is for a period of five years or greater. (NNSA, No. 9 at p. 1) DHHS-
IHS-OEHE was concerned that unless the availability of renewable energy
sources from the grid is allowed and expanded, these fossil fuel
reduction goals will not be met, and therefore supported the use of
Renewable Energy Certificates and PPAs. (DHHS, No. 24 at pp. 5-6)
GSA expressed concern about the requirement for long-term
contracts, and indicated that GSA cannot procure renewable energy under
PPAs in a manner that would make them economical due to their 10 year
utility contracting authority under Federal Acquisition Regulation Part
41. (GSA, No. 26 at p. 2) NIBS strongly discouraged the utilization of
PPAs or Renewable Energy Certificates as a mechanism for meeting such
requirements, stating that it would hamper interest in energy efficient
design. (NIBS, No. 12 at p. 3)
AGA opposed the use of Renewable Energy Certificates and PPAs,
stating there is no guarantee that they will contribute to fossil fuel
reductions. (AGA, No. 16 at p. 5) AGA was also concerned that, because
the statute does
[[Page 61710]]
not address efficient use of energy in Federal buildings, the rule
encourages potentially wasteful use of renewables and nuclear-generated
electric energy. (AGA, No. 16 at p. 1) AGA and GTI commented that, if
PPAs are allowed, the rule should also allow the purchase of natural
gas from renewable sources as well, such as biomethane, biopropane,
biofuel oil and biomass. (AGA, No. 16 at p. 5; GTI, No. 22 at p. 14)
APGA commented that DOE should not allow contracts to deliver off-site
renewable energy to count towards on-site fossil fueled energy
reductions because such contracts cannot insure that only non-fossil-
fueled electrons are delivered to Federal facilities. (APGA, No. 17 at
p. 6)
In addition to Renewable Energy Certificates and PPAs, DOE received
several comments from DOD about allowing agencies to use an agency
portfolio approach for renewable electricity produced off-site by the
agency. These commenters stated that they encourage investment in
renewable energy where it is most cost-effective, which is often across
a portfolio rather than on a building-by-building basis. (DOD-OUSOD,
No. 25A at p. 1; DOD-N, No. 25B at p. 1; DOD-AF, No. 25C at p. 4)
DOE proposes to permit a deduction, subject to limitation, for
``on-site renewable electricity generation'' and for ``off-site
renewable electricity generation'' (e.g., Renewable Energy
Certificates, agency portfolio renewable energy production and off-site
PPAs).
Today's proposal specifies that ``on-site renewable electricity
generation'' is the amount of electricity to be consumed by the subject
building that is contributed by renewable electricity generated at the
Federal site or facility on which the subject building will be located.
Thermal energy produced from a renewable energy source reduces a
building's load and would be treated the same as energy efficiency for
purposes of this rule. Federal agencies that choose to use on-site
renewable electricity generation would not be permitted to transfer the
environmental attributes of the on-site generation. In other words,
agencies would not be permitted to convey the REC associated with the
on-site project to an off-site project.
In the proposed regulation Federal agencies are given credit for
on-site renewable energy via the renewable energy and CHP electricity
deduction in the calculation for the fossil fuel-generated energy
consumption of a proposed design. On-site renewable energy would be
subtracted from the proposed design's annual site electrical
consumption. The building designer typically uses site electrical
energy consumption when calculating the building's fossil fuel-
generated energy consumption. Deducting renewable energy generation
from the proposed design's site electricity consumption before
adjusting the electricity consumption for the electricity source energy
factor and the fossil fuel generation factor would ensure that
renewable energy generation is given appropriate credit for reducing
fossil fuel-generated energy consumption. Biomethane, biopropane,
biofuel oil, and biomass used on-site, to the extent they can be
identified and accounted for, would not be included in direct fossil
fuel energy consumption and would qualify as a renewable energy
deduction if used to generate electricity.
DOE understands agencies' interest in allowing the use of off-site
renewable energy resources, including environmental attributes
represented by Renewable Energy Certificates, to help meet the
requirements. It may be difficult to achieve the required fossil fuel
reductions without use of renewable resources, and on-site renewable
resources may not be feasible or available in many cases. Thus, use of
off-site renewable electricity resources and/or Renewable Energy
Certificates, may be necessary. In addition, with off-site renewable
resources, agencies may be better able to optimize production or reduce
costs because of resource availability, economies of scale, and other
factors.
While DOE acknowledges the benefits of off-site renewable energy,
DOE has some concerns with allowing the use of off-site renewable
energy, including Renewable Energy Certificates, without limitation.
DOE is concerned that energy representing a Renewable Energy
Certificate that is not under substantial control of the Federal agency
claiming the REC because ECPA, as amended, requires that each Federal
agency meet the reduction requirements for each of its Federal
buildings. DOE is also concerned about RECs being not properly tracked
and accounted for, and that a REC may not represent new or additional
capacity. Additional administrative and accounting complexity could
detract from agency compliance.
Therefore, under this SNOPR, agencies would be required to ensure
that any renewable energy resources used to meet the rule represent new
capacity and are not drawn from existing resources, and the renewable
energy generation could not be used to offset the fossil fuel-generated
energy consumption of more than one design. DOE believes that requiring
off-site generation to represent new capacity would be consistent with
the statutory goal of reducing total fossil fuel consumption.
DOE acknowledges that increased demand for Renewable Energy
Certificates, whether from the Federal sector or elsewhere, will send a
market signal to develop more renewable resources rather than reduce
the amount of Renewable Energy Certificates available for other
entities. DOE also recognizes that many commenters support the use of
Renewable Energy Certificates as a compliance path for this SNOPR.
To receive credit against the reduction targets under any of the
above scenarios, an agency would be required to ensure that the
renewable energy environmental attributes are dedicated to meeting the
fossil fuel reduction requirements of the subject new or renovated
building and not used elsewhere. The renewable energy environmental
attributes would need to be retained by the agency. Environmental
attributes represent the general environmental benefits of renewable
generation such as air pollution avoidance (e.g., sulfur dioxide,
nitrogen oxide, methane, carbon dioxide). The exact quantity of the
environmental benefit (e.g. pounds of emission reductions of a given
pollutant) is not indicated by an environmental attribute, though it
can be quantified separately through engineering estimates. The
environmental attribute represents all environmental benefits provided
by renewable energy generation.
DOE recognizes that the December 5, 2013 ``Presidential
Memorandum--Federal Leadership on Energy Management'' (``Presidential
Memorandum) prioritizes Federal agency renewable energy sources for
purposes of meeting the renewable energy consumption goals in the
Presidential Memorandum. Federal agencies should consider the
prioritization in the Presidential Memorandum when determining how they
would comply with this proposed rule.
DOE requests additional comment on the issues related to the use of
off-site renewable energy generation, including Renewable Energy
Certificates, in complying with the proposed rule. Specifically, DOE is
also concerned about, and requests comment on, how the current state of
information and markets would allow Federal agencies to reliably trace
a Renewable Energy Certificate to an actual reduction in fossil fuel
use.
[[Page 61711]]
3. Use of Source Energy
The NOPR stated that CBECS and RECS data does not provide data on
total fossil fuel-generated energy consumption in buildings; however,
fossil fuel-generated energy consumption can be calculated from CBECS
and RECS data by using the following equation:
Fossil fuel-generated energy consumption = Direct consumption of fossil
fuels in the building plus the amount of electrical energy consumption
that is generated from fossil fuels. 75 FR 63407.
In order to determine the amount of electricity consumed in the
building that is generated from fossil fuels, it is necessary to
convert site electricity to source energy. Source energy is the total
amount of energy used at the site, including the energy used to
generate and deliver electricity to the site. Site electricity is
converted to source energy by multiplying site electricity by the
electricity source energy factor. For purposes of today's rule, source
energy is further adjusted to account for the portion of electricity
generated from fossil fuels by multiplying source energy times the
fossil fuel generation factor and adding direct consumption of fossil
fuels in the building. DOE did not ask for comment on this issue except
as to whether the calculation could be effectively used for on-site
combined heat and power systems (discussed later). Nonetheless, DOE
received several comments concerning the use of source energy rather
than site energy.
NREC commented that site energy, which can be easily measured and
verified, is the only correct method that can be used. (NREC, No. 28 at
pp. 1-2) EEI stated that the use of source energy contradicts the 2007
final rule on energy efficiency performance standards for new Federal
buildings, and urged DOE to use site energy. (EEI, No. 10 at p. 2) EEI
stated that the use of source energy contradicts the conclusion of
ASHRAE's Technology Council Ad Hoc Committee on Energy Targets, where
ASHRAE, the American Institute of Architects (AIA), the U.S. Green
Building Council (USGBC), and the Illuminating Engineering Society of
North America (IESNA) agreed to use site energy as the metric for net-
zero energy buildings. (EEI, No. 10 at pp. 4-5) EEI also claimed that
the use of source energy will make the reduction targets unattainable.
(EEI, No. 10 at p. 7) Finally, EEI argued that site energy metrics
would eliminate any game playing or distorted results from the use of
on-site renewable energy or CHP systems. (EEI, No. 10 at p. 6)
AGA commented in support of DOE's proposed use of source energy.
Source energy, AGA stated, is essential to calculating fossil fuel use
in both direct primary energy use and electric generation, and is
consistent with the recommendations of the National Research Council on
energy efficiency standards and measurement approaches, EPA's ENERGY
STAR for Commercial Buildings, and national consensus standards such as
the Green Buildings Initiative, ANSI standard and proposed IgCC Version
2.0 model code. (AGA, No. 16 at pp. 2-3) AGA recommended, for clarity,
that the regulatory definitions include ``source'' energy. (AGA, No. 16
at p. 4)
GTI supported the use of source energy. They commented that site
energy incentivizes lower first cost technologies and inadvertently
promotes fuel switching away from more full-fuel-cycle energy efficient
and lower greenhouse gas-emitting technologies. (GTI, No. 22 at pp. 5,
14) GTI also commented that the proposed DOE definition of primary
energy only considers the energy required to convert fuels to
electricity at the power plant, not the fossil fuel energy consumption
associated with extraction, processing, transportation, or distribution
of fuels used directly in buildings. (GTI, No. 22 at p. 2) GTI, APGA,
and NPGA commented that DOE's proposed source energy metrics should be
replaced with full-fuel-cycle information as DOE has decided to use in
certain analyses the Department conducts when setting energy
conservation standards for consumer products and commercial equipment.
(see Docket No. EERE-2010-BT-NOA-0028, RIN 1904-AC24, Statement of
Policy for Adopting Full-Fuel-Cycle Analyses into Energy Conservation
Standards Program.) (GTI, No. 22 at p. 15; APGA, No. 17 at p. 3; NPGA,
No. 23 at p. 3) GTI offered DOE's Greenhouse Gases, Regulated
Emissions, and Energy Use in Transportation (GREET) model as the
primary energy to full-fuel-cycle conversion factor methodology, and
its Source Energy and Emissions Analysis Tool (SEEAT) as its underlying
methodology for consideration. (GTI, No. 22 at pp. 5-6)
DOE continues to believe that source energy is the correct metric
to use for this rulemaking, for reasons cited in the NOPR and discussed
at the beginning of this section. Because this rule relates to fossil
fuel reductions specifically (rather than energy reductions generally)
and not all electricity is produced from fossil fuels, it was necessary
to go beyond site energy and look at source energy to accurately
quantify fossil fuel consumption for electricity. For this reason, DOE
adjusted site energy from electricity by the percentage of electricity
produced from fossil fuels (fossil fuel generation factor) and the fuel
conversion, transmission, and distribution losses (electricity source
energy factor) to determine the fossil fuel-generated energy
consumption from electricity. The use of source energy is consistent
with the approach EPA uses for ENERGY STAR Portfolio Manager. EPA has
determined that source energy is the most equitable unit of evaluation
for fossil fuels.\1\ Source energy forms the basis for the maximum
allowable fossil fuel-generated consumption reductions in Tables 1-4 in
Appendix A.
---------------------------------------------------------------------------
\1\ U.S. Environmental Protection Agency. ENERGY STAR
Performance Ratings Methodology for Incorporating Source Energy Use.
March, 2011.
---------------------------------------------------------------------------
Regarding EEI's concern that source energy would distort the
results or cause game-playing with on-site renewable energy or CHP,
this SNOPR gives on-site renewable energy generation the same benefit
as improved energy efficiency. Under either scenario, the non-fossil
fuel generation does not count toward the proposed design site
electricity consumption. Similarly, any electricity produced by a CHP
does not count toward the proposed design site electricity consumption.
Regarding EEI's contention that source energy will make the reductions
unattainable, DOE notes that if the reductions are not attainable via
energy efficiency alone, Federal agencies may choose to use a renewable
energy deduction.
DOE appreciates the comments from GTI and others about using a
full-fuel-cycle approach with the GREET or SEEAT models, but believes
the methods used in this rule are appropriate to address the statutory
requirements. The maximum allowable fossil fuel-generated energy
consumption targets in today's rule incorporate losses back to the
power plant and the pipeline. However, DOE does not believe it is
necessary to go further upstream in its analysis for purposes of this
rule. Any losses that occur further upstream than the power plant or
pipeline would be very difficult to substantiate with precision.
4. Fuel Conversion Efficiency
In the NOPR, DOE proposed that the electricity source energy factor
would be based on the average utility delivery ratio in Table 6.2.4 of
the 2010 DOE Building Energy Data Book (See http://buildingsdatabook.eere.energy.gov). 75 FR 63410. The ratio accounts for
fuel conversion losses to produce electricity, as well as transmission
and distribution losses. DOE used the electricity source
[[Page 61712]]
energy factor of 0.316 from the most recent year data was available,
2008. Recent updates in the 2011 DOE Buildings Energy Databook (see
http://buildingsdatabook.eere.energy.gov) indicate that the current
value in most current historical value in 2010 was 0.323, with a
predicted gradual increase to 0.340 by 2035.
EEI commented that assuming a 33 percent conversion efficiency of
fossil fuels to electricity will guarantee miscalculations, especially
in areas with more renewable forms of electric generation. (EEI, No. 10
at p. 3) For example, the conversion efficiency of natural gas
generation built over the last 10-15 years, has a thermal efficiency in
the 55 to 57 percent range. (EEI, No. 7 Public Meeting Transcript, at
p. 29; EEI, No. 10 at p. 3) AGA commented that DOE should not impose
barriers to use of end-use fuel choice as a means of achieving target
reductions. (AGA, No. 16 at p. 3) APGA and GTI commented that since
generation efficiency and fuel mix will not materially change between
now and 2030, it will be critical to reduce purchased electricity
consumption significantly to help achieve required targets. (APGA, No.
17 at p. 4; GTI, No. 22 at p. 2)
APGA commented that the proposed definition of primary energy is
incomplete in that it only considers the energy required to convert
fuels to electricity at the power plant, not primary energy resources
necessary to obtain and transport the fuel to the power plant nor
fossil fuel energy consumption associated with extraction, processing,
transportation, or distribution of fuels used directly in buildings.
(APGA, No. 17 at p. 3) APGA also commented that renewable generation
requires fossil fueled backup, which will frustrate the 100 percent
elimination of fossil fuel-generated energy consumption. (APGA, No. 17
at p. 6) DOD-N commented that the thermal efficiency factor has been
omitted from the proposed calculation. (DOD-N, No. 25B at p. 3) IDEA
commented that the definition of electricity source energy factor
appears to be incorrect and should refer to ``primary fuel'' rather
than ``primary electrical energy.'' (IDEA, No. 21 at p. 2)
First, DOE notes that thermal efficiency is embedded as part of
electricity source energy factor, as well as the other fuel source
energy multiplier. Further, DOE does not share the concern that the use
of fossil fuels for backup power by a utility when intermittent
renewable energy is not available will frustrate the 2030 goal of 100
percent reduction in the use of fossil fuel-generated energy.
Compliance with the requirements leading up to 2030 (i.e., 55 percent
in FY 2010-2014, 65 percent in FY 2015-2019, 80 percent in FY 2020-
2024, and 90 percent in FY 2025-2029) is determined on an annual basis,
and DOE believes it is reasonable to continue to apply that approach to
the 100 percent reduction requirement after 2030. Even though fossil
fuels may be used by a utility as backup power during certain times of
the day or year when a renewable resource is not available, surplus
renewable energy provided at other times will offset fossil fuel
consumption for use elsewhere.
In the NOPR, ``primary electrical energy use'' was a term used only
in the definitions of ``electricity source energy factor'' and ``fossil
fuel consumption for electricity generation.'' The latter term is not
included in the today's rule, and the definition of ``electricity
source energy factor'' has been modified and no longer refers to
``primary electrical energy use,'' eliminating the need to redefine the
term.
The definition of ``electricity source energy factor'' has been
simplified in this proposed rule. Electricity source energy factor is
defined as the multiplier used to account for fuel conversion losses
and transmission and distribution losses associated with electricity
generated from fossil fuels. For this proposed rule, the factor to be
used is 0.316. This represents the average efficiency of fossil fuel
generation in 2008 as described in the NOPR. The electricity source
energy factor was used to help convert CBECS and RECS site energy data
to source energy in Tables 1-4 of Appendix A as described in the
preamble section on source energy.
EEI argued that it is inconsistent to use estimates for going
``upstream'' for electricity but not for direct use of fossil fuels.
(EEI, No. 10 at p. 6) DOE has added an ``other fuels source energy
multiplier'' to the equation for various fuels other than electricity
to determine the fossil fuel-generated energy consumption of the
proposed building. These multipliers were used by ORNL when converting
the CBECS site energy use data to source-based fossil fuel generated
energy consumption, so the multipliers also need to be included in the
calculation for the proposed building. The multipliers account for
distribution and other losses that occur between the time the fuel
provider takes delivery and final delivery to the building site as
measured at the meter, and provides consistency with the adjustment for
electricity. The ``other fuels source energy multipliers'' do not
include well-head, mine-mouth, or bulk fuel transportation losses.
5. On-Site Energy Generation From Natural Gas
The NOPR indicated DOE's interest in the effect of the fossil fuel-
generated energy consumption reduction requirements on distributed
energy technologies that provide onsite electrical generation from
natural gas, such as combined heat and power (CHP) systems to generate
both heat and electricity. A building with a CHP system could
potentially be an all-gas building in terms of utility purchases and
would, therefore, be required to reduce natural gas consumption in
accordance with the fossil fuel-generated energy consumption reduction
requirements. DOE indicated its interest in minimizing the penalty or
not discourage the use of on-site CHP systems, within the limits of the
statutory language. DOE invited comments on how appropriate credit may
be given for CHP systems through the compliance determination
methodology. 75 FR 63410.
DOE received several comments related to distributed energy
technologies. IDEA commented that district heating systems may use a
mix of fossil fuels and renewable fuels and may also supply electricity
to the power grid using combined heat and power (CHP), and that the
rule does not accurately capture the efficiency of district energy.
(IDEA, No. 21 at p. 2) EEI disagreed that on-site CHP has inherent
efficiencies compared to purchased electricity; CHP can be very
efficient, but it is not always more efficient than combined-cycle
generation. (EEI, Public Meeting Transcript, No. 7 at pp. 53-54) EEI
also commented that one of the issues is the on-site production of
energy, whether it is electric energy, thermal energy or fossil fuel
energy. (EEI, Public Meeting Transcript, No. 7 at p. 51) On a related
issue pertaining to on-site generation more broadly, EEI commented that
the use of on-site renewable energy does not change the energy
efficiency of the building, it only moves the source of energy closer
to the building. (EEI, No. 10 at p. 5)
NIBS commented that the logic behind singling out CHP systems seems
flawed because their efficiency is already accounted for. (NIBS, No. 12
at p. 3) AGA commented that the direct use of natural gas in Federal
buildings should be preserved as an option where installation of
natural gas applications would both reduce fossil fuel-generated energy
consumption and increase energy efficiency. (AGA, No. 16 at p. 2) NAD
commented that fuel cells can operate on natural gas until hydrogen
[[Page 61713]]
fuel storage becomes feasible, and suggested they should be addressed
like CHP systems. (NAD, No. 19 at p. 3) AGA also commented that the
calculation methodology correctly provides credit for the installation
of on-site combined heat and power (CHP) systems, and suggested that
DOE should promote these technologies within Federal buildings within
the timeframes for which fossil fuel use is still permitted (i.e.,
before FY 2030). (AGA, No. 16 at p. 5)
DHHS-IHS-OEHE supported not penalizing or discouraging the use of
on-site sources. (DHHS, No. 24 at p. 5) DOD-N commented that
distributed electrical power produced on-site should be credited with
fossil fuel use avoidance for electricity sold into the grid. (DOD-N,
No. 25B at p. 5) IDEA recommended the addition of eight definitions and
amendment of the definition of ``Proposed Design Fossil Fuel-Generated
Energy Consumption'' and the definition of ``Direct Fossil Fuel
Consumption.'' (IDEA, No. 21 at pp. 3-4)
Based on the comments received and a technical review of the issues
raised, DOE proposes specificity on how CHP and district heating
systems should be considered. DOE believes that this specificity adds
clarity and addresses the comments submitted. Under DOE's proposal for
district heating or cooling systems using fossil fuel as the source,
the fossil fuel-generated energy consumption would be determined by
adjusting the building load for the plant fuel conversion efficiency
and estimated distribution losses as reflected in the ``Other Fuels
Energy Source Multiplier.'' If a non-fossil fuel is used as the sole
source (e.g., geothermal) of energy for the district heating system,
there would be no contribution to fossil fuel-generated energy
consumption.
For CHP district heating systems, the electricity attributed to the
proposed building would be determined by multiplying the building's
pro-rated share of the total delivered heat from the system times the
total electricity produced by the CHP system. For CHP systems serving
only one building, fossil fuel consumption of the CHP system would be
added to the direct fossil fuel consumption in Equation 1. Because it
is produced from waste heat, the amount of electricity produced by
either the CHP system serving a single building or a CHP district
heating system, as determined above, would be deducted from the
proposed design site electricity in Equation 1 under the renewable
energy and CHP deduction.
6. Additional Review
Because of the complexity of some of the issues presented in the
NOPR, two comments were submitted requesting an additional opportunity
to review the rule before it is finalized, especially regarding the
issues of climate zones and regional considerations. (NPGA, No. 23 at
p. 5; DHHS, No. 24 at p. 1) This SNOPR provides an opportunity for
additional comment on the proposed rulemaking, including the issues of
climate zones and regional considerations.
7. Other
DOE received a few additional comments relating to methodology that
did not fit into one of the categories above. AGA and APGA asked DOE
not to achieve reductions by encouraging Federal agencies to only use
electricity supplied by nuclear energy rather than renewable energy.
(AGA, No. 16 at p. 2; APGA, No. 17 at p. 6) The American Wood Council
(AWC) commented that DOE should reference not only LEED as a tool for
energy reductions, but also Green Globes and the National Association
of Home Builders (NAHB) Standard. (AWC, No. 18 at p. 2) DOE notes that
all nuclear power is produced by regulated utilities and there is no
mechanism for utility customers to get credit for nuclear-generated
electricity under today's rule. There is currently no way for a non-
utility to purchase nuclear-generated electric power as there is for
electricity produced from renewable energy sources under arrangements
like PPAs or RECs. However, DOE does recognize that on-site deployment
of small modular reactors (SMRs) may be possible in the future and that
some agencies may be in a position to rely on SMRs for energy. DOE
requests comment on how the potential future use of on-site SMRs could
be addressed in the final rule.
DOE acknowledges that, to the extent LEED is referenced as a
possible resource for fossil fuel reductions, it should have also
referenced other green building rating systems (GBRS) such as Green
Globes and the NAHB Green Standard. Although DOE has added these GBRS
in the Reference Resources section below, DOE notes that these systems
do not provide specific guidance that could help designers achieve the
level of reductions called for in today's rule.
E. Petitions for Downward Adjustment
Upon petition by an agency subject to the statutory requirements,
ECPA permits DOE to adjust the applicable numeric fossil fuel-generated
energy consumption percentage reduction requirement downward with
respect to a specific building, if the head of the agency designing the
building certifies in writing that meeting the requirement would be
technically impracticable in light of the agency's specified functional
needs for the building and DOE concurs with the agency's conclusion.
(42 U.S.C. 6834(a)(3)(D)(i)(II)) ECPA further directs that such an
adjustment does not apply to GSA. In today's rulemaking, DOE proposes a
downward adjustment process for new construction and separate processes
for major renovations that are whole building renovations and for major
renovations that are limited to system or component level renovations.
1. Technical Impracticability and Cost as a Basis for Downward
Adjustment
The NOPR noted that the downward adjustment provision of ECPA does
not expressly include cost considerations, but that DOE was considering
incorporating cost considerations as part of a ``technically
impracticable'' determination. Cost would not be the sole rationale for
a determination of ``technically impracticable,'' but high costs could
be part of the evaluation. 75 FR 63412. DOE invited comments on what
kind of technical impracticability would constitute grounds for a
petition for downward adjustment.
DOE received several comments about allowing costs (or cost-
effectiveness) as grounds for a petition for downward adjustment. DOD-
OUSOD and DOD-AF commented that life-cycle cost-effectiveness should be
the foundation for any finding of ``technically impracticable.'' (DOD-
OUSOD, No. 25A at p. 1; DOD-AF, No. 25C at p. 7) NIBS commented that
any petition invoking cost as a basis for technical impracticability
should be based solely on life-cycle costs, not first costs. (NIBS, No.
12 at p. 4) AGA recommended that petitions should be ``technologically
feasible and economically justified'' as the term is used in ECPA. It
also recommended that cost-effectiveness be based on life-cycle cost-
effectiveness of the relevant energy reduction measures. (AGA, No. 16
at p. 3)
NRDC commented that DOE's proposal to use ``cost considerations''
as part of the determination of what is ``technically impracticable''
is contrary to what NRDC reads as EISA's plain language, and that DOE
should not use cost impacts in any way to limit the application of the
rule. (NRDC, No. 14 at p. 8) NRDC stated that by requiring these
reductions in fossil fuel use regardless of costs, Congress was
advancing a broader goal that goes beyond the reduction of fossil fuel
use
[[Page 61714]]
by Federal buildings, specifically that the Federal government will
lead by example. (NRDC, No. 14 at p. 9)
DOE understands the concern that achieving the reductions required
by this rulemaking, especially in the out-years, could be difficult and
expensive. DOE also appreciates the concern that allowing costs as the
basis for a downward adjustment petition could result in many agencies
requesting a petition simply based on cost. The statutory provision
concerning a petition for downward adjustment states that agencies must
demonstrate that meeting the reductions would be technically
impracticable ``in light of the agency's specified functional needs for
the building,'' and does not mention cost. As a result, DOE does not
believe that cost itself could be grounds for a downward adjustment.
However, DOE believes that it would be appropriate and permissible to
consider a petition for downward adjustment based on the impact to an
agency's functional needs for the building of achieving the fossil
fuel-generated energy consumption reductions. DOE recognizes that an
agency's functional needs for a building may be inextricably linked
with costs, but cost should not be the primary basis for a petition for
downward adjustment.
2. Bundling of Petitions
The bundling of petitions was not an issue addressed in the NOPR.
However, three comments were submitted on whether an agency could
submit a single petition for downward adjustment for multiple agency
buildings of the same building type, rather than requiring a petition
for each building separately, to minimize agency burden. (DOD-AF, No.
25C at p. 8; DOD-OUSOD, No. 25A at p. 1; DHHS, No. 24 at p. 6)
DOE agrees that ``bundling'' of petitions by an agency for
buildings of the same building type and function would help streamline
the petitioning process and relieve the burden on agencies and DOE by
avoiding duplication of effort. Although DOE would require an
individual petition containing the information required under this
proposed rule for each building, if the petitions for similar buildings
are submitted jointly, a petition may reference the downward adjustment
justification in another petition in the bundle. DOE is considering
allowing agencies to bundle petitions for new buildings or whole
renovations to buildings: (1) That are of the same building type and of
similar size; (2) that are being designed and constructed to the same
set of targets for fossil fuel-generated energy consumption reduction;
or (3) that would require similar measures to reduce fossil fuel-
generated energy consumption and similar adjustment to the numeric
reduction requirement. The bundled petitions should clearly state any
differences between the buildings, and explain why the differences do
not warrant the submission of separate evaluations. If an agency is
designing a similar building for a different set of targets for fossil
fuel-based energy consumption reduction that meets conditions (1) and
(3) above, the agency would be required to submit a separate petition,
but may include the evaluation for the previous building(s) as well as
an explanation why that earlier evaluation should apply to the new
building(s).
For component-level major renovations, DOE is considering allowing
bundling petitions that are of the same component and building type.
DOE is accepting comment on the most efficient yet effective ways to
bundle petitions.
3. DOE Review Process
The NOPR stated that DOE will review petitions in a timely manner
and if the petitioning agency has successfully demonstrated the need
for a downward adjustment per the discussion above, DOE would concur
with the agency's conclusion and notify the agency in writing. If DOE
does not concur, it would forward its reasons to the petitioning agency
with suggestions as to how the fossil fuel-generated energy consumption
percentage reduction requirement may be achieved. 75 FR 63412.
Several comments were submitted about the DOE review process. EEI,
ICC, DOD-OUSOD, and DOD-N requested information on how quickly the
Secretary of Energy has to render a decision on a petition, and
requested a timeline. (EEI, Public Meeting Transcript, No. 7 at p. 61;
ICC, No. 11 at p. 3; DOD-OUSOD, No. 25A at p.1; DOD-N, No. 25B at p. 7)
NRDC and DOD-OUSOD commented that DOE should establish procedures for
reviewing and ruling on petitions for adjustments to ensure public
transparency. (NRDC, No. 14 at p. 7; DOD-OUSOD, No. 25A at p. 1) DOD-N
recommended that the rule should include where and how to submit
petitions. (DOD-N, No. 25B at p. 7)
DOE recognizes that agencies want assurance that DOE will respond
to petitions in a timely manner to avoid project delays. For petitions
for new construction, DOE proposes to notify an agency in writing
within 90 days of submittal whether a petition for downward adjustment
is approved or rejected. If DOE rejects the petition, it would include
its reasons for doing so in its response to the agency. Additionally
for new construction, DOE proposes a provision under which DOE could
establish an adjusted value other than the one presented in a petition
if DOE finds that the petition does not support the conclusion of the
submitting agency but that the statutorily required level was
nonetheless technically impractical in light of the agency's specific
functional needs for the building. This provision is intended to
provide flexibility in the petition process and reduce the need for
agencies to resubmit in the instance of a rejection. Under the statute,
the Secretary of Energy is tasked with deciding whether to grant a
petition for downward adjustment and DOE believes that this authority
also grants DOE the ability to propose alternative adjusted values if
appropriate.
For petitions for downward adjustments to the requirements
applicable to major renovations, DOE proposes that the downward
adjustment would be granted upon submission of specified
certifications. The necessary certifications are discussed in greater
detail further in this document.
4. Information Required in Petitions for New Construction
The NOPR proposed that a petition for downward adjustment of the
numeric requirement should include an explanation of what measures
would be required to meet the fossil fuel-generated energy consumption
reduction requirement, and why those measures would be technically
impracticable in light of the agency's specified functional needs for
the building. DOE also proposed that the petition should demonstrate
that the adjustment requested by the agency represents the largest
feasible reduction in fossil fuel-generated energy consumption that can
reasonably be achieved. DOE solicited comments on those issues. 75 FR
63412.
Several comments specifically asked what kind of information would
be required for a petition. DOD-N recommended that DOE provide guidance
regarding expected content of petitions and the minimum supporting
information required for review and approval. (DOD-N, No. 25B at p. 7)
NRDC recommended that DOE require that the agency provide in its
petition any relevant information that is needed to understand and
verify the agency's conclusion and request, including information about
the building's specified functional needs. (NRDC, No. 14 at p. 12) NRDC
thought the
[[Page 61715]]
requirement that a petition demonstrate that the requested adjustment
is the largest feasible reduction in fossil fuel-generated consumption
that can be achieved represents a positive step. (NRDC, No. 14 at p. 8)
NIBS suggested that the petitions include a description of all
reasonable technologies and practices that were examined and ultimately
rejected by the design team. (NIBS, No. 12 at p. 4)
DOE agrees with these comments and is proposing provisions intended
to provide more detailed petition requirements that would allow the
Department to determine more comprehensively whether a downward
adjustment would be allowable. DOE proposes a modified provision to
require a demonstration that the requested adjustment represents the
largest feasible fossil fuel reduction that can reasonably be achieved
to include a demonstration that all life-cycle cost-effective energy
efficiency and on-site renewable energy measures were included in the
design and a description of the technologies and practices that were
evaluated and rejected, including a justification why they were not
included. Finally, agencies would also be permitted to provide
additional information they think will help justify the request for
downward adjustment.
Petitions would also be required to include the maximum allowable
fossil fuel-generated energy consumption for the proposed building, the
estimated fossil fuel-generated energy consumption of the proposed
building, and a description of the building and the building energy
systems. A description of the building would include, but would not be
limited to, location, use type, floor area, stories, and functional
needs of the building, and any other information the agency deems
pertinent. The building energy systems to be described would include
the building envelope, HVAC systems, lighting systems, service water
heating system, and estimated receptacle and plug loads. This
information should provide DOE the necessary information to review
petitions, and help agencies ensure key questions and options are
addressed in the design process.
5. Downward Adjustments for Major Renovations
As noted previously, for major renovations DOE proposes that the
fossil fuel reduction requirements apply only to the energy use
associated with the portions of the building or building systems that
are being renovated and only to the extent that the scope of the
renovation provides an opportunity for compliance with the applicable
fossil fuel-generated energy consumption reduction requirements. DOE
recognizes that the improved efficiencies that can be achieved through
renovation may not provide sufficient reduction of fossil fuel-
generated energy use for a major renovation to meet the interim
requirements. Renovations are even less likely to achieve a 100
percent-reduction, even in the limited context of the energy use
associated with just the renovated system or component. As such, DOE
expects that to the extent that renovations would be subject to the
requirements, agencies would need to apply for downward adjustments.
The SNOPR differs from the NOPR by establishing a separate section
and separate requirements for downward adjustments for major
renovations, and further delineates between major renovations that are
whole building renovations and major renovations that are limited to
system or component level retrofits (e.g., a lighting retrofit, a
retrofit of a boiler or chiller). Whole building retrofits provide a
greater opportunity for improved energy efficiency as compared to a
system or component level retrofit, but generally neither type of
retrofit would likely provide an opportunity to meet the fossil fuel
reduction requirements. Recognizing the practical limitations on
improving energy efficiency through retrofits, DOE proposes separate
downward adjustment processes for major renovations. For major
renovations that are whole building renovations, a downward adjustment
would be provided at a level equal to the energy efficiency level that
would be achieved were the proposed building designed to meet the
energy efficiency standard applicable to new construction. As directed
by ECPA, this downward adjustment would not apply to GSA, although DOE
proposes that this adjustment would be available to GSA-tenant agencies
with significant control over building design.
The energy efficiency standards for new construction are
established in 10 CFR part 433, for commercial and multi-family high-
rise residential buildings, and 10 CFR part 435, for low-rise
residential buildings. The energy efficiency standards require a
building be designed to achieve the energy efficiency levels of the
applicable referenced voluntary consensus code: ASHRAE 90.1 for
commercial buildings multi-family high-rise residential buildings, and
IECC for low-rise residential buildings. The energy efficiency
standards for new Federal buildings further require that buildings be
designed to achieve energy efficiency levels that are at least 30
percent beyond the levels established in the referenced codes, if life-
cycle cost-effective. As proposed, a building undergoing a whole
building renovation would need to be designed to achieve the energy
efficiency levels currently applicable only to new construction. DOE
has preliminarily determined that achieving the specified level of
energy efficiency for a major retrofit that is a whole building
retrofit would represent the appropriate level of fossil fuel-generated
energy reduction for the building efficiency that is also technically
practicable.
For major renovations that are limited to system or component level
retrofits, DOE proposes to provide downward adjustments at a level
equal to the energy efficiency level that would be achieved through the
use of commercially available systems and/or components that provide a
level of energy efficiency that is life-cycle cost effective. The
energy efficiency requirement for system and component level
renovations could be demonstrated by using the higher efficiency of the
following, (1) ENERGY STAR or FEMP designated products, or (2) products
that meet the energy efficiencies specified in ASHRAE 90.1 for systems
and components in commercial buildings, or IECC for systems and
components in residential buildings.
In setting efficiency requirements, both FEMP and ENERGY STAR
choose levels that are among the highest 25 percent of efficiency for a
given product category. ENERGY STAR estimates that its program saves
more than 200 billion kWh of electricity each year, and FEMP estimates
that compliance with its efficiency requirements can save the
government more than 30 trillion BTUs each year. Both programs have
integrated life-cycle cost effectiveness into their guiding principles
and, as such, Federal buyers can have confidence that required products
have both good energy performance and a total cost of ownership that is
equal to or less than products below set efficiencies. Prescriptive
requirements of ASHRAE 90.1 and IECC demonstrate similarly high levels
of efficiency. Together, these requirements cover more than 70 product
types and will help ensure that the products used within Federal
facilities are among the highest energy efficiencies available. Federal
buildings that install and use these products will realize lower energy
intensities compared to using non-compliant products.
DOE requests comment on the considered approach as well as comment
on other potential methods for
[[Page 61716]]
processing requests related to major renovations.
6. Make Information Publicly Available
DOE received some comments that petitions for downward adjustment
should be made publicly available on a DOE Web site. (NRDC, No. 14 at
p. 11; Form letter, No. 29 at p. 1) This issue was not addressed in the
NOPR. The Form Letter comments also stated that Federal agency
compliance with today's SNOPR should be made public. (Form letter, No.
29 at p. 1)
Commenters stated that the reasons for making this information
publicly available are that it would make the process transparent and
hold agencies accountable and could reduce unsupported petitions. DOE
appreciates the commenters concerns and supports transparency to the
extent the Department can be transparent while also responding to
petitions in a short timeframe so as not to delay building design and
construction. As a result, DOE is proposing reporting petition summary
level information in the DOE Annual Report to Congress on Federal
Energy Management and Conservation Programs (See http://www.energy.gov/about/budget.htm).
7. Narrow the Use of Petitions
DOE received a few comments related to narrowing the use of
petitions for downward adjustment. NRDC commented that in developing
the test for technical impracticability and the standards for downward
adjustment petitions, DOE must consider the statutory context of the
EISA 2007 provision, which demonstrates that DOE should not craft a
broad petition procedure that swallows the larger statutory
requirement. (NRDC, No. 14 at p. 8) The Form Letter requested that DOE
promulgate strict requirements that ensure that agency requests for
fossil fuel reduction adjustments will be rarely granted, so that this
process does not prevent the law from achieving its vital goal to cut
government buildings' greenhouse gas emissions dramatically. The Form
Letter also urged DOE to strengthen the rule and apply it without
exceptions and without loopholes. (Form letter, No. 29 at p. 1)
DOE believes the changes it has proposed in this SNOPR would reduce
the number of petitions submitted for downward adjustment and will
improve the content of submitted petitions. DOE has expanded the number
of building types covered in Tables 1-4 in Appendix A of part 433, and
has a methodology for calculating the maximum allowable fossil fuel-
generated consumption values for buildings with process loads. This is
expected to greatly reduce the number of building types without
baselines and fossil fuel reduction targets, eliminating a significant
potential source of petitions. In addition, in response to some of the
public comments received, this proposed rule is more specific about
information to be provided as part of the petition process. Agencies
requesting a petition would be required to: (1) Demonstrate that the
requested adjustment represents the largest feasible fossil fuel
reduction that can be achieved; (2) demonstrate that all cost-effective
energy efficiency and on-site renewable energy has been included in the
proposed design; and (3) describe all technologies and practices that
were evaluated and rejected, including a justification as to why they
were not included in the design. The rule would require specific
information about the energy efficiency and on-site renewable energy
measures included in the proposed building design to enable DOE to
evaluate the request for downward adjustment.
8. GSA Tenant Agencies
The statute does not provide the General Services Administration
(GSA) the option of petitioning DOE for a downward adjustment of the
applicable percentage reduction requirement. (42 U.S.C.
6834(a)(3)(D)(i)(II)) In the NOPR, DOE proposed that a new Federal
building or a Federal building undergoing major renovations for which a
Federal agency is providing substantive and significant design criteria
may be the subject of a petition. 75 FR 63412. Under this approach, DOE
proposed that a GSA building that is designed to meet the
specifications provided by a tenant agency may be considered for a
downward adjustment if a petition is submitted by the head of the
tenant agency.
DOE received one comment on this issue. NRDC commented that
allowing GSA tenant agencies to petition for downward adjustments
contradicts the statute. (NRDC, No. 14 at p. 10)
While the statute prohibits GSA from petitioning DOE for a downward
adjustment, it makes no reference to GSA tenant agencies. DOE is
continuing to propose that GSA tenant agencies that have significant
control over building design may request a petition. In such cases, it
would be the tenant agency, not GSA, that is making the design choices
that would allow for compliance with the rule. Allowing GSA tenant
agencies to submit a petition for downward adjustment would provide an
option for some buildings for which the required fossil fuel reductions
may be technically impracticable in light of the building's functional
needs, but for which GSA may not submit a petition.
9. Other
DHHS-HIS-OEHE commented that consideration for what is technically
impracticable should include remote locations that often have limited
choices in available power utility companies. (DHHS, No. 24 at p. 6)
DOE will consider remote locations and the availability of power
utility companies in the petition process, but DOE also notes that the
use of allowable, off-site renewable energy sources would help agencies
meet their targets even in the case of remote buildings.
F. Impacts of the Rule
1. Cost Impacts
The NOPR provided a discussion of the expected costs of meeting the
fossil fuel-generated energy consumption reduction requirements based
on a study that DOE commissioned by PNNL in 2008 to look at the
incremental costs of high performance buildings, and cost calculations
for DOE work associated with the ASHRAE Advanced Energy Design Guides.
DOE acknowledged that cost data for high performance buildings is
fairly rare, and many times the costs for achieving high levels of
energy efficiency are intermingled with the costs to achieve more
sustainable design features. 75 FR 63410. Because of the limited data,
DOE sought comment on cost impacts, especially any construction cost
increases for buildings that Federal agencies are in the process of
designing or have already built.
DOE did not receive any comments providing additional specific cost
information. EEI noted that the PNNL 2008 report stated that the cost
data was very limited. (EEI, No. 10 at p. 8) NIBS stated that the focus
on first costs is misplaced and should not be considered; DOE should
focus on the overall life-cycle-cost of the requirements. (NIBS, No. 12
at p. 3) NRDC also stated that when analyzing cost impacts, DOE should
look at life-cycle costs rather than increased first costs. (NRDC, No.
14 at p. 7) NRDC commented that past experience has shown that the cost
of efficiency improvements tends to be lower than predicted and that
the magnitude of increases in energy efficiency will often exceed
expectations. In another comment, NRDC stated that the statute does not
mention costs as one of the criteria for application of this rule;
therefore, DOE should not use cost to limit the application of the
rule. (NRDC, No. 14 at p. 6).
[[Page 61717]]
The AGA stated that the estimates should be based on actual quotes,
not PNNL analyses or the ASHRAE Advanced Energy Design Guides. (AGA,
No. 16 at p. 5) APGA states that EISA 2007 Section 433 strongly
discourages any use of natural gas and subsidizes the growth of non
fossil-fueled electricity generation, the vast majority of which will
likely be produced off-site. APGA believes that, under this
interpretation, EISA 2007 may reduce initial construction costs
(relative to onsite generation) and massively increase life-cycle
operating costs for utility services. (APGA, No. 17 at p. 6) NAD
commented that the cost analysis described in the proposed rules showed
up to an 8.7 percent cost increase for a simple building, but this will
increase dramatically for more complex buildings, especially for
buildings built in the later years when fossil fuel reductions near 100
percent. (NAD, No. 19 at p. 3) The DOD-AF commented that given the
restrictive nature of the Military Construction Program (MILCON)
funding process, it is not clear how the Air Force can implement a
strategy to meet this requirement within the timeline discussed and
whether there is a budget to implement this requirement while meeting
current and future Air Force mission needs. (DOD-AF, No. 25C at p. 6).
DOE agrees that it is prudent to consider cost-effectiveness of
energy reduction measures. First costs, of course, are necessary to
compute cost-effectiveness. DOE notes, however, that per the statute,
high first costs/poor cost-effectiveness are not an explicit
consideration for today's rulemaking. (See 42 U.S.C. 6834(a)(3)(D)).
Nonetheless, DOE believes that minimizing costs to Federal agencies is
a significant consideration, and DOE has designed this proposed rule to
minimize costs and foster the most cost-effective approaches to meeting
the statutorily mandated fossil fuel reductions.
The baseline Federal building energy efficiency standards published
in the past few years require agencies to design new Federal buildings
to achieve energy consumption levels at least 30 percent below the
levels of the baseline building built to ASHRAE Standard 90.1-2010, or
the IECC 2009 (depending on the type of building), if life-cycle cost-
effective. See 78 FR 40945 (July 9 2013); 76 FR 49279 (August 10,
2011). If achieving this consumption level is not life-cycle cost-
effective, Federal agencies must, at a minimum, meet ASHRAE Standard
90.1-2007, or the IECC 2009 (depending on the type of building).
Federal agencies are already required to incur the costs associated
with meeting these requirements. For new Federal buildings, it is only
the additional first cost of achieving fossil fuel-generated
consumption reductions beyond the energy efficiency improvements
already required for new Federal buildings that would be attributable
to this proposed rule. Beyond those pre-existing requirements, agencies
have the option of implementing additional energy efficiency, on-site
renewable energy, or acquiring off-site renewable energy in accordance
with procedures described earlier. The rule provides agencies with some
alternative ways to achieve the required fossil fuel reductions, and
DOE expects that agencies will select the most cost-effective
combination of these options.
2. Other Impacts
DOE received several comments closely associated with cost impacts.
A few commenters expressed concern that the rulemaking discourages or
encourages the use of certain fuel types or other forms of energy
without any consideration of the comparative efficiency and
environmental impacts of optional fuel choices. (See AGA, No. 16 at p.
2; APGA, No. 17 at pp. 2-3). One commenter encouraged DOE to account
for indirect social costs and another expressed concern that DOE might
use the ``social cost of carbon'' in its cost/benefit analysis for this
rule (NRDC, No. 14 at p. 7; EEI, No. 10 at pp. 8-9).
Several comments were submitted questioning the technical and
fiscal feasibility of meeting today's requirements, especially the 100
percent fossil fuel reduction requirement starting in FY 2030. (See
AGA, No. 16 at p. 2; APGA, No. 17 at p. 2; NPGA, No. 23 at pp. 2, 4;
GTI, No. 22 at p. 14; DOD-AF, No. 25C at p. 7; EEI, Public Meeting
Transcript, No. 7 at p. 53)
DOE acknowledges that achieving the reductions, especially the 100
percent reduction in 2030, will be challenging. However, the reductions
mandated today are established by statute. DOE expects design practices
and technologies will improve and costs will decrease in coming years,
making it easier and less costly to achieve reductions through either
energy efficiency or the use of on-site renewable energy. If the
reductions are technically impracticable in light of the agency's
functional needs for the building after all of these provisions are
implemented, as a last resort, Federal agencies (except for GSA) may
petition the Secretary of Energy through the DOE's Federal Energy
Management Program (FEMP) Director for a downward adjustment to the
numeric reduction requirement.
Finally, DOE received several comments broadly supporting DOE's
energy conservation and renewable energy efforts or other energy
conservation or renewable energy efforts. Some of these comments
supported or opposed the use of certain forms of renewable and fossil
energy, others supported specific green building measures, and others
encouraged green technology research. DOE actively supports the
research and development of a wide range of forms of renewable energy
and has chosen not to narrow the renewable energy deduction in this
rule to only certain forms of renewable energy. Many of the suggestions
made by commenters are currently being implemented by DOE. Executive
Orders 13423 and 13514 require Federal agencies to implement
sustainable practices, GSA has established an Office of High
Performance Green Buildings, and ECPA, as amended by EISA, requires
sustainable design principles be applied to all new Federal buildings
and major renovations of Federal buildings (42 U.S.C. 6834(a)(3)).
Elsewhere in this issue of the Federal Register, the green building
certification portion of the Sustainable Design NOPR is published as a
final rule.
G. Guidance and Other Topics
DOE requested specific comment in the NOPR on what additional
training would help agencies meet the reductions called for by this
statute. In addition to comments on that question, DOE received several
unique comments as part of the Form Letter about alternative
generation, green buildings, and transportation.
1. Training
In the NOPR, DOE provided references to various tools to help
agencies design new Federal buildings and major renovations to achieve
the required fossil fuel reductions, and asked for comments on
additional training or tools that might be helpful. 75 FR 63413.
NIBS confirmed the importance of an experienced and well-trained
design team. (NIBS, No. 12 at p. 4) AIA commented that improvement of
energy modeling tools and creation of early-design phase tools is
necessary. AIA mentioned the need to train architects, engineers and
other building design professionals to meet these energy targets. They
also mentioned the need to train building owners, facility managers and
inhabitants on operations and maintenance. AIA also recommended
examining tools being used for building analysis. (AIA, No. 15 at p. 2)
DOD-OUSOD commented that additional
[[Page 61718]]
training should cover reconciliation of force protection/security
requirements with sustainable design. (DOD-OUSOD, No. 25A at p. 3) ICC
endorsed the listing of resources including the International Green
Construction Code and ASHRAE 189.1. (ICC, No. 11 at p. 3) NRDC
commented that DOE should look at real data and survey other agencies
to understand what would make the reduction requirement ``technically
impracticable'' and look at the technology available now and consider
the technology in development, to answer this question. This would
allow DOE to target resources to assist agencies in meeting the
requirements for future years, when greater reductions in fossil fuel
usage will be required. (NRDC, No. 14 at p. 8)
DOE agrees about the importance of training and tools to help
improve the ease and effectiveness of designing high-performance
buildings. DOE develops, and will continue to develop, tools and
training. This will include looking at real data and surveying agencies
on new technologies and experience with high performance building
practices, including compliance with the fossil fuel reduction
requirements. DOE agrees it is important to reconcile force protection/
security requirements with energy and sustainable design
considerations, and will work with agencies to do so.
As FEMP did with the existing Federal building energy efficiency
standards, FEMP plans to hold webcasts on the new Federal baseline
energy efficiency standards, and today's fossil fuel reduction rule.
FEMP currently keeps all material related to the Federal standards at
http://www1.eere.energy.gov/femp/regulations/notices_rules.html. FEMP
also has training available on all aspects of Federal energy management
and conservation at http://apps1.eere.energy.gov/femp/training.
In addition to the tools identified in the NOPR and the FEMP tools
listed above, DOE is also referencing additional resources in the next
section of this document.
2. Verification and Monitoring
NRDC recommended that a design verification and commissioning plan
be part of the building design to help ensure the required reductions.
They also suggested that a requirement be included for continued
measurement and monitoring of Federal buildings with mandatory
reporting and disclosure to the public. (NRDC, No. 14 at p. 16)
DOE agrees that both building commissioning and verification of
performance are important to ensure buildings perform as designed to
achieve the required fossil fuel-generation energy consumption
reductions. ECPA, however, provides that new Federal buildings and
major renovations of Federal buildings shall be ``designed'' so that
fossil fuel-generated energy consumption is reduced. As such, the
rulemaking only covers the building design, not post-occupancy. EISA
section 432, however, requires that Federal agencies report and
benchmark energy and water use for at least 75 percent of facility
energy use. (42 U.S.C. 8253(f)) Agencies should refer to ``Building
Energy Use Benchmarking Guidance,'' http://www1.eere.energy.gov/femp/regulations/guidance.html, for information and guidance on these
requirements.
IV. Reference Resources
DOE has prepared a list of resources to help Federal agencies
address the reduction of fossil fuel-generated energy consumption. The
final rule on energy efficiency published in the Federal Register on
December 4, 2006 (71 FR 70275) contains some reference resources for
energy efficiency improvement in building design. These resources come
in many forms such as design guidance, case studies and in a variety of
media such as printed documents or on Web sites. The resources for
energy efficiency improvement will also provide guidance for fossil
fuel-generated energy consumption reductions.
DOE is adding to this list of resources to also include:
U.S. Department of Energy, Federal Energy Management
Program. (www1.eere.energy.gov/femp). FEMP provides access to numerous
resources and tools that can help Federal agencies improve the energy
efficiency of new and existing buildings.
U.S. Department of Energy, Building Technologies Program.
Database of high-performance buildings. (eere.buildinggreen.com).
FedCenter. High Performance Buildings. (www.fedcenter.gov/programs/greenbuildings/).
American Society of Heating, Refrigerating, and Air-
conditioning Engineers, Inc. ``Advanced Energy Design Guides.'' (http://www.ashrae.org/technology/page/938) and (http://www1.eere.energy.gov/buildings/commercial_initiative/guides.html). The ASHRAE ``Advanced
Energy Design Guides (AEDGs),'' developed in cooperation with DOE and
others, are a series of publications designed to provide
recommendations for achieving energy savings 30 percent better than the
minimum code requirements of ANSI/ASHRAE/IESNA 90.1-2004, and cover K-
12 school buildings, small retail buildings, small office buildings,
small hospitals and healthcare facilities, highway lodging, and small
warehouses and self-storage buildings. Additional design guides aimed
at establishing 50 percent energy savings over the minimum code
requirements of ANSI/ASHRAE/IESNA 90.1-2004 are being developed for
small-to-medium office buildings, mid-box retail, highway lodging, K-12
schools, grocery/supermarket, and quick-serve restaurants.
American Society of Heating, Refrigerating, and Air-
conditioning Engineers, Inc. ANSI/ASHRAE/IESNA Standard 189.1 Standard
for the Design of High-Performance Green Buildings. (www.ashrae.org/publications/page/927).
Tangherlini, Daniel, Administrator, General Services
Administration, Letter to Secretary Ernest Moniz, U.S. Department of
Energy, GSA recommendations and review of green building certification
systems, October 25, 2013. (http://www.gsa.gov/portal/content/131983?utm_source=OGP&utm_medium=print-radio&utm_term=gbcertificationreview&utm_campaign=shortcuts).
National Institute of Building Sciences. ``Whole Building
Design Guide.'' (www.wbdg.org).
International Code Council. ``International Green
Construction Code.'' (www.iccsafe.org/cs/IGCC/Pages/default.aspx).
Northwest Energy Efficiency Alliance, Better Bricks
Commercial Building Initiative, (www.betterbricks.com).
Massachusetts High Performance Buildings Database.
(mtc.buildinggreen.com).
New Buildings Institute. Buildings Database.
(buildings.newbuildings.org).
Environmental Building News. BuildingGreen.com.
(www.buildinggreen.com) (subscription required).
V. Procedural Issues and Regulatory Review
A. Review under Executive Orders 12866 and 13563
It has been determined that this regulatory action is a
``economically significant regulatory action'' under section 3(f)(1) of
Executive Order 12866. Accordingly, section 6(a)(3) of the Executive
Order requires that DOE prepare a regulatory impact analysis (RIA) on
this proposed rule and that the Office of Information and Regulatory
[[Page 61719]]
Affairs (OIRA) in the OMB review this proposed rule. DOE has also
reviewed this regulation pursuant to Executive Order 13563, issued on
January 18, 2011. 76 FR 3281 (January 21, 2011). EO 13563 is
supplemental to and explicitly reaffirms the principles, structures,
and definitions governing regulatory review established in Executive
Order 12866.
The RIA consists of: (1) A statement of the problem addressed by
this regulation, and the mandate for government action; (2) a
description and analysis of the feasible policy alternatives to this
regulation; (3) a quantitative comparison of the impacts of the
alternatives; and (4) the national economic impacts of the proposed
standards.
The RIA calculates the effects of feasible policy alternatives to
mandatory standards for new Federal buildings and major renovations
subject to the requirements, and provides a quantitative comparison of
the impacts of the alternatives. DOE evaluated each alternative in
terms of its ability to achieve significant energy savings at
reasonable costs, and compared it to the effectiveness of the proposed
rule.
DOE identified the following major policy alternatives for
achieving increased energy efficiency:
No new regulatory action;
``Zero fossil fuel'' alternative of immediately requiring
the lowest fossil fuel-generated energy consumption limits specified in
the rule of zero fossil fuel usage; and
The proposed approach.
DOE also considered certain non-regulatory policy alternatives such
as tax credits, rebates, and labeling programs, and was unable to
identify any non-regulatory policy alternatives that would be viable
for Federal buildings. DOE evaluated the alternatives in terms of cost
and energy savings.
Table V-1--Construction Cost Increases Under the Fossil Fuel-Reduction Rule and ``Zero Fossil Fuel'' Alternative (Relative to Baseline ``No-action''
Alternative) Calendar Years 2015-2044
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fossil fuel-reduction Fossil fuel-reduction ``Zero fossil fuel'' ``Zero fossil fuel''
rule--high PV \1\ cost rule--low PV cost alternative--high PV alternative--low PV
Calendar year scenario (2012 scenario (2012 cost scenario (2012 cost scenario (2012
$million) $million) $million) $million)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2015................................................ $30 $30 $1,194 $1,136
2016................................................ 30 30 1,189 1,103
2017................................................ 30 30 1,183 1,071
2018................................................ 30 30 1,178 1,040
2019................................................ 30 30 1,173 1,010
2020................................................ 536 447 1,191 1,005
2021................................................ 534 435 1,186 976
2022................................................ 532 424 1,181 949
2023................................................ 530 413 1,175 922
2024................................................ 528 402 1,170 896
2025................................................ 841 618 1,165 871
2026................................................ 837 601 1,160 847
2027................................................ 834 585 1,155 824
2028................................................ 830 569 1,150 801
2029................................................ 827 554 1,145 778
2030................................................ 1,135 736 1,140 757
2031................................................ 1,130 716 1,140 757
2032................................................ 1,125 696 1,140 757
2033................................................ 1,120 677 1,140 757
2034................................................ 1,115 658 1,140 757
2035................................................ 1,110 640 1,140 757
2036................................................ 1,110 640 1,140 757
2037................................................ 1,110 640 1,140 757
2038................................................ 1,110 640 1,140 757
2039................................................ 1,110 640 1,140 757
2040................................................ 1,110 640 1,140 757
2041................................................ 1,110 640 1,140 757
2042................................................ 1,110 640 1,140 757
2043................................................ 1,110 640 1,140 757
2044................................................ 1,110 640 1,140 757
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ ``PV'' references solar photovoltaic technologies.
Table V-2--Annualized Benefits and Costs to Federal Government for New and Existing Construction Under the Fossil Fuel-Reduction Rule \a\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Monetized (2012 $million/year)
Discount rate --------------------------------------------------------------------------------
Primary estimate \b\ Low estimate \b\ High estimate \b\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating (Energy) Cost Savings..... 7%............................... 349.2.................... 336.1.................... 468.9
3%............................... 606.7.................... 580.1.................... 841.4
CO2 Reduction at $12.9/t \c\........ 5%............................... 46.0..................... 46.0..................... 46.0
CO2 Reduction at $40.8/t \c\........ 3%............................... 178.6.................... 178.6.................... 178.6
CO2 Reduction at $62.2/t \c\........ 2.50%............................ 270.6.................... 270.6.................... 270.6
CO2 Reduction at $117.0/t \c\....... 3%............................... 550.9.................... 550.9.................... 550.9
[[Page 61720]]
NOX Reduction at $2,639/t \c\....... 7%............................... 2.9...................... 2.9...................... 2.9
3%............................... 4.9...................... 4.9...................... 4.9
Total (Operating Cost Savings, CO2 7% plus CO2 range................ 398 to 903............... 385 to 890............... 518 to 1023
Reduction and NOX Reduction) \d\.
7%............................... 530.7.................... 517.6.................... 650.4
3%............................... 790.2.................... 763.6.................... 1024.9
3% plus CO2 range................ 658 to 1163.............. 631 to 1136.............. 892 to 1397
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Incremental Purchase Price Increase. 7%............................... 479.4.................... 572.6.................... 386.3
3%............................... 574.6.................... 695.6.................... 453.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Benefits/Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2 7% plus CO2 range................ -28 to 477............... -188 to 317.............. 132 to 636
Reduction and NOX Reduction, Minus
Incremental Cost Increase to
Buildings).
7%............................... 104.6.................... -55.0.................... 264.2
3%............................... 215.7.................... 68.0..................... 571.4
3% plus CO2 range................ 187 to 692............... -65 to 440............... 439 to 944
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Incremental costs are calculated for buildings constructed or renovated in 2015-2044; total benefits extend through 2074.
\b\ The primary, low, and high estimates utilize forecasts of energy prices from the Annual Energy Outlook 2013 reference case. The low and high cases
were based upon the percentage price deviations from the Annual Energy Outlook 2013 reference case as provided in the Low Economic Growth case and
High Economic Growth case, respectively.
\c\ These values represent global values (in 2012$) of the social cost of CO2 (SCC) emissions in 2013 under several scenarios developed by the
Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC
distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC
distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value
($2,639) of the low ($468) and high ($4,809) values was used.
\d\ Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NOX and CO2 emissions calculated
at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$).
Primary, low, and high estimates of the benefits and costs were
developed to indicate the possible range of these metrics. The future
energy prices used to compute operating cost savings for the primary
estimate were taken from the Annual Energy Outlook 2013 reference case.
The low estimate combines slightly lower energy prices as compared to
the reference case along with the construction cost developed as part
of the high-cost PV case (used for incremental construction cost).
Alternatively, the high estimate combines higher energy prices relative
to the reference case along with the construction cost developed as
part of the low-cost PV case. The average incremental construction cost
based upon the high-cost PV case and the low-cost PV case was used as
the primary estimate of incremental construction cost.
Table V-3--Annualized Benefits and Costs to the Federal Government for New and Existing Construction Under the ``Zero Fossil Fuel'' Alternative a
--------------------------------------------------------------------------------------------------------------------------------------------------------
Monetized (2012 $million/year)
Discount rate --------------------------------------------------------------------------------
Primary estimate \b\ Low estimate \b\ High estimate \b\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating (Energy) Cost Savings..... 7%............................... 601.4.................... 583.1.................... 781.2
3%............................... 1076.6................... 893.6.................... 1259.6
CO2 Reduction at $12.9/t \c\........ 5%............................... 68.6..................... 68.6..................... 68.6
CO2 Reduction at $40.8/t \c\........ 3%............................... 257.9.................... 257.9.................... 257.9
CO2 Reduction at $62.2/t \c\........ 2.50%............................ 388.0.................... 388.0.................... 388.0
CO2 Reduction at $117.0/t \c\....... 3%............................... 793.2.................... 793.2.................... 793.2
NOX Reduction at $2,639/t \c\....... 7%............................... 4.8...................... 4.8...................... 4.8
3%............................... 7.1...................... 7.1...................... 7.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2 7% plus CO2 range................ 675 to 1399.............. 657 to 1381.............. 855 to 1579
Reduction and NOX Reduction) \d\. 7%............................... 864.1.................... 845.8.................... 1043.8
3%............................... 1341.6................... 1158.6................... 1524.7
3% plus CO2 range................ 1152 to 1877............. 969 to 1694.............. 1335 to 2060
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 61721]]
Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Incremental Purchase Price Increase. 7%............................... 1043.8................... 1167.0................... 920.6
3%............................... 1021.6................... 1161.1................... 882.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Benefits/Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2 7% plus CO2 range................ -288 to 436.............. -510 to 214.............. -66 to 659
Reduction and NOX Reduction, Minus 7%............................... -99.0.................... -321.2................... 123.2
Incremental Cost Increase to 3%............................... 320.0.................... -2.5..................... 642.5
Buildings). 3% plus CO2 range................ 131 to 855............... -192 to 533.............. 453 to 1178
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Incremental costs are calculated for buildings constructed or renovated in 2014-2044; total benefits extend through 2074.
\b\ See footnote (b) for Table 2.
\c\ These values represent global values (in 2012$) of the social cost of CO2 (SCC) emissions in 2012 under several scenarios developed by the
Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC
distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC
distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value
($2,639) of the low ($468) and high ($4,809) values was used.
\d\ Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NOX and CO2 emissions calculated
at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$).
The net benefits in 2010 dollars to the Federal government using
the primary estimate for PV system costs turns out to be $104.6
million/year using the 7% discount rate, while it is $215.7 million/
year using the 3% discount rate for the fossil fuel reduction rule
(Table V-2), while the corresponding figures are negative $99.0
million/year using the 7% discount rate and positive $320 million/year
using the 3% discount rate for the ``zero fossil fuel'' alternative to
the rule (Table V-3).
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the
preparation of an initial regulatory flexibility analysis for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by Executive Order 13272, Proper Consideration of Small Entities in
Agency Rulemaking, 67 FR 53461 (August 16, 2002), DOE published
procedures and policies on February 19, 2003, to ensure that the
potential impacts of its rules on small entities are properly
considered during the rulemaking process (68 FR 7990). The Department
has made its procedures and policies available on the Office of General
Counsel's Web site: http://energy.gov/gc/guidance-opinions-0 .
This proposed rulemaking applies only to the fossil fuel-generated
energy consumption of new Federal buildings and Federal buildings
undergoing major renovation. As such, the only entities directly
regulated by this rulemaking would be Federal agencies. DOE does not
believe that there will be any impacts on small entities such as small
businesses, small organizations, or small governmental jurisdictions.
On the basis of the foregoing, DOE certifies that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. Accordingly, DOE has not prepared a
regulatory flexibility analysis for this rulemaking. DOE's
certification and supporting statement of factual basis will be
provided to the Chief Counsel for Advocacy of the Small Business
Administration pursuant to 5 U.S.C. 605(b).
C. Review Under the Paperwork Reduction Act of 1995
This rulemaking will impose no new information or record keeping
requirements. Accordingly, Office of Management and Budget (OMB)
clearance is not required under the Paperwork Reduction Act. (44 U.S.C.
3501 et seq.)
D. Review Under the National Environmental Policy Act of 1969
DOE prepared an draft Environmental Assessment (EA) (DOE/EA-1778)
entitled, ``Environmental Assessment for Proposed Rulemaking, 10 CFR
parts 433 and 435, `Fossil Fuel-Generated Energy Consumption Reduction
for New Federal Buildings and Major Renovations of Federal Buildings,''
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).
The draft EA addresses the possible environmental effects
attributable to the implementation of the today's rule. The rule by its
fundamental intent has a positive impact on the environment. The only
anticipated impact of today's rulemaking would be a decrease in outdoor
air pollutants resulting from reduced fossil fuel-generated energy
consumption in new Federal buildings and major renovations of Federal
buildings.
E. 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
[[Page 61722]]
statement of policy describing the intergovernmental consultation
process it will follow in the development of such regulations. (65 FR
13735). DOE examined this rulemaking and determined that it would not
preempt State law and would 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.
F. Review Under Executive Order 12988, ``Civil Justice Reform''
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Federal agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; and (3) provide a clear legal
standard for affected conduct, rather than a general standard and
promote simplification and burden reduction. Section 3(b) of Executive
Order 12988 specifically requires that Executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect, if any; (2) clearly specifies any effect on
existing Federal law or regulation; (3) provides a clear legal standard
for affected conduct, while promoting simplification and burden
reduction; (4) specifies the retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. Section 3(c) of Executive Order 12988 requires
Executive agencies to review regulations in light of applicable
standards in section 3(a) and section 3(b) to determine whether they
are met or it is unreasonable to meet one or more of them. DOE has
completed the required review and determined that, to the extent
permitted by law, this rulemaking meets the relevant standards of
Executive Order 12988.
G. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub.
L. 104-4) requires each Federal agency to assess the effects of Federal
regulatory actions on State, local, and tribal governments and the
private sector. For a proposed regulatory action likely to result in a
rule that may cause the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector of $100 million
or more in any one year (adjusted annually for inflation), section 202
of UMRA requires a Federal agency to publish a written statement that
estimates the resulting costs, benefits, and other effects on the
national economy. (2 U.S.C. 1532(a) and (b)) The UMRA also requires a
Federal agency to develop an effective process to permit timely input
by elected officers of State, local, and tribal governments on a
proposed ``significant intergovernmental mandate,'' and requires an
agency plan for giving notice and opportunity for timely input to
potentially affected small governments before establishing any
requirements that might significantly or uniquely affect small
governments. On March 18, 1997, DOE published a statement of policy on
its process for intergovernmental consultation under UMRA (62 FR 12820)
(also available at http://energy.gov/gc/guidance-opinions-0). This
rulemaking 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.
H. 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 supplemental proposed rule would not have any impact
on the autonomy or integrity of the family as an institution.
Accordingly, DOE has preliminarily concluded that it is not necessary
to prepare a Family Policymaking Assessment.
I. Review Under Executive Order 12630, ``Governmental Actions and
Interference With Constitutionally Protected Property Rights''
The Department has determined, under Executive Order 12630,
``Governmental Actions and Interference with Constitutionally Protected
Property Rights,'' 53 FR 8859 (March 18, 1988), that this rule would
not result in any takings which might require compensation under the
Fifth Amendment to the United States Constitution.
J. 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 rulemaking under the OMB and DOE guidelines and
has preliminarily concluded that it is consistent with applicable
policies in those guidelines.
K. Review Under Executive Order 13211, ``Actions Concerning Regulations
That Significantly Affect Energy Supply, Distribution, or Use''
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355
(May 22, 2001), requires Federal agencies to prepare and submit to the
Office of Information and Regulatory Affairs (OIRA), Office of
Management and Budget, a Statement of Energy Effects for any proposed
significant energy action. A ``significant energy action'' is defined
as any action by an agency that promulgated or is expected to lead to
promulgation of a final rule, and that: (1) Is a significant regulatory
action under Executive Order 12866, or any successor order; and (2) is
likely to have a significant adverse effect on the supply,
distribution, or use of energy, or (3) is designated by the
Administrator of OIRA as a significant energy action. For any proposed
significant energy action, the agency must give a detailed statement of
any adverse effects on energy supply, distribution, or use should the
proposal be implemented, and of reasonable alternatives to the action
and their expected benefits on energy supply, distribution, and use.
This rulemaking would not have a significant adverse effect on the
supply, distribution, or use of energy. Moreover, as the rulemaking
would result in increased building energy efficiency, it would not have
a significant adverse effect on energy. For these reasons, the
rulemaking is not a significant energy action. Accordingly, DOE has not
prepared a Statement of Energy Effects.
[[Page 61723]]
L. Review Under the Information Quality Bulletin for Peer Review
In consultation with the Office of Science and Technology Policy
(OSTP), OMB issued on December 16, 2004, its ``Final Information
Quality Bulletin for Peer Review'' (the Bulletin). 70 FR 2664 (January
14, 2005). The Bulletin establishes that certain scientific information
shall be peer reviewed by qualified specialists before it is
disseminated by the Federal government, including influential
scientific information related to agency regulatory actions. The
purpose of the Bulletin is to enhance the quality and credibility of
the government's scientific information. Under the Bulletin, EIA's
CBECS and RECS are ``influential scientific information,'' which the
Bulletin defines as ``scientific information that the agency reasonably
can determine will have or does have a clear and substantial impact on
important public policies or private sector decisions.'' 70 FR 2664,
2667 (January 14, 2005). The Academy recommendations have been peer
reviewed pursuant to section II.2 of the Bulletin. Both surveys are
peer reviewed internally within EIA and other DOE offices before they
are published. In addition, both surveys are subject to public comment
that EIA addresses before finalizing CBECS and RECS.
List of Subjects in 10 CFR Parts 433 and 435
Buildings and facilities, Energy conservation, Engineers, Federal
buildings and facilities, Fossil fuel reductions, Housing,
Incorporation by reference, Multi-family residential buildings.
Issued in Washington, DC, on September 28, 2014.
David Danielson,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the preamble, DOE proposes to amend
chapter II of title 10 of the Code of Federal Regulations as set forth
below:
PART 433--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND
CONSTRUCTION OF NEW FEDERAL COMMERCIAL AND MULTI-FAMILY HIGH-RISE
RESIDENTIAL BUILDINGS
0
1. The authority citation for part 433 continues to read as follows:
Authority: 42 U.S.C. 6831-6832, 6834-6835; 42 U.S.C. 7101 et
seq.
0
2. In Sec. 433.1, paragraph (b) is added to read as follows:
Sec. 433.1 Purpose and scope.
* * * * *
(b) This part also establishes a maximum allowable fossil fuel-
generated energy consumption standard for new Federal buildings that
are commercial and multi-family high-rise residential buildings and
major renovations to Federal buildings that are commercial and multi-
family high-rise residential buildings, for which design for
construction began on or after October 14, 2015.
* * * * *
0
3. In Sec. 433.2:
0
a. Add in alphabetical order, the definitions of ``Combined heat and
power (CHP) system,'' ``Construction cost,'' ``District energy
system,'' ``Fiscal year (FY),'' ``Major renovation,'' ``Multi-family
high-rise residential building,'' ``Power purchase agreement (PPA),''
and ``Renewable energy certificate'';
0
b. Revise the definitions of ``New Federal building'' and ``Proposed
building''; and
0
c. Remove the definitions of ``Life-cycle cost'' and ``Life-cycle cost-
effective''.
The additions and revisions read as follows:
Sec. 433.2 Definitions.
* * * * *
Combined heat and power (CHP) system means an integrated system,
located at or near a building or facility that is used to generate both
heat and electricity for use in the building or facility.
* * * * *
Construction cost means all costs associated with design and
construction of a building. It includes the cost of design, permitting,
construction (materials and labor), and building commissioning. It does
not include legal or administrative fees, or the cost of acquiring the
land.
* * * * *
District energy system means a central energy conversion plant and
transmission and distribution system that provides thermal energy to a
group of buildings (heating via hot water or steam, and/or cooling via
chilled water). This definition only includes thermal energy systems;
central energy supply systems that only provide electricity are
excluded from this definition.
* * * * *
Fiscal year (FY) begins on October 1 of the year prior to the
specified calendar year and ends on September 30 of the specified
calendar year.
* * * * *
Major renovation means changes to a building that provide
significant opportunities for compliance with other applicable
requirements in this part. For subpart B--reduction in fossil fuel-
related energy consumption, for example, replacement of the HVAC
system, lighting system, building envelope, or other components of the
building that have a major impact on energy usage would constitute a
major renovation.
Multi-family high-rise residential building means a residential
building that contains 3 or more dwelling units and that is designed to
be 4 or more stories above grade.
New Federal building means any new building (including a complete
replacement of an existing building from the foundation up) to be
constructed by, or for the use of, any Federal agency. Such term shall
include buildings built for the purpose of being leased by a Federal
agency, and privatized military housing.
Power purchase agreement means an agreement with an electricity
producer for all or a specified portion of the electricity produced
from a particular power source, in this case a renewable energy source,
for a specified period of time.
* * * * *
Proposed Building means the design for construction of a new
Federal commercial or multi-family high-rise residential building, or
major renovation to a Federal commercial multi-family high-rise
residential building, proposed for construction.
* * * * *
Renewable energy certificate means the technology and environmental
(non-energy) attributes that represent proof that 1 megawatt-hour (MWh)
of electricity was generated from a renewable energy resource, and can
be sold separately from the underlying generic electricity with which
it is associated.
0
4. Revise Sec. 433.3(b)(3) to read as follows:
Sec. 433.3 Materials incorporated by reference.
* * * * *
(b) * * *
(3) ANSI/ASHRAE/IESNA 90.1-2010, (``ASHRAE 90.1-2010''), Energy
Standard for Buildings Except Low-Rise Residential Buildings, I-P
Edition, Copyright 2010, IBR approved for Sec. Sec. 433.2, 433.100,
433.101, Appendix A to subpart B.
0
5. Revise Sec. 433.4 to read as follows:
Sec. 433.4 Life-cycle cost-effective.
Except as specified in subparts A, B or C of this part, Federal
agencies shall determine life-cycle cost-effectiveness
[[Page 61724]]
by using the procedures set out in subpart A of part 436 of this
chapter. A Federal agency may choose to use any of four methods,
including life-cycle cost, net savings, savings-to-investment ratio,
and adjusted internal rate of return using the discount rate published
in the annual supplement to the Life Cycle Costing Manual for the
Federal Energy Management Program (NIST 85-3273).
0
6. Subpart B is added to part 433 to read as follows:
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec.
433.200 Fossil fuel-generated energy consumption requirement.
433.201 Fossil fuel-generated energy consumption determination.
433.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 433--Maximum Allowable Fossil Fuel-
Generated Energy Consumption
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec. 433.200 Fossil fuel-generated energy consumption requirement.
(a) New Federal buildings. New Federal buildings that are
commercial and multi-family high rise residential buildings, for which
design for construction began on or after October 14, 2015, must be
designed to meet the requirements of paragraphs (c) or (d) of this
section, as applicable, if:
(1) The subject building is a public building as defined in 40
U.S.C. 3301 and for which transmittal of a prospectus to Congress is
required under 40 U.S.C. 3307; or
(2) The cost of the building is at least $2,500,000 (in 2007
dollars, adjusted for inflation).
(b) Major renovations. (1) Major renovations to Federal buildings
that are commercial and multi-family high-rise residential buildings,
for which design for construction began on or after October 14, 2015,
must be designed to meet the requirements of paragraph (c) or (d) of
this section, as applicable, if:
(i) The renovation is a major renovation to a public building as
defined in 40 U.S.C. 3301 and for which transmittal of a prospectus to
Congress is required under 40 U.S.C. 3307; or
(ii) The cost of the major renovation is at least $2,500,000 (in
2007 dollars, adjusted for inflation).
(2) This subpart applies only to the portions of the proposed
building or proposed building systems that are being renovated and to
the extent that the scope of the renovation permits compliance with the
applicable requirements in this subpart. Unaltered portions of the
proposed building or proposed building systems are not required to
comply with this subpart.
(3) For leased buildings, this subpart applies to major renovations
only if the building was originally built for the use of any Federal
agency, including being leased by a Federal agency.
(c) Federal buildings that are of the type included in Appendix A
of this subpart--(1) Design for construction began during fiscal year
2014 through fiscal year 2029. The fossil fuel-generated energy
consumption of the proposed building, based on the building design and
calculated according to Sec. 433.201(a), must not exceed the value
identified in Tables 1-4 of Appendix A of this subpart for the
associated building type, climate zone, and fiscal year in which design
for construction began.
(2) Design for construction began during or after fiscal year 2030.
The fossil fuel-generated energy consumption of the proposed building,
based on building design and calculated according to Sec. 433.201(a),
must be zero.
(3) Mixed-use buildings. (i) For buildings that combine two or more
building types identified in Tables 1-4 of Appendix A of this subpart,
the maximum allowable fossil fuel-generated energy consumption of the
proposed building is equal to the averaged applicable building type
values in Tables 1-4 weighted by floor area of the present building
types.
(ii) For example, if a proposed building for which design for
construction began in FY2014 that is to be built in climate zone 1 has
a total of 200 square feet--100 square feet of which qualifies as
College/University and 100 square feet of which qualifies as
Laboratory--the maximum allowable fossil fuel-generated energy
consumption is equal to:
[(100 sqft. x 89 kBtu/yr.-sqft.) + (100 sqft x 251 kBtu/yr.-sqft.)]/200
sqft. = 170 kBtu/yr.-sqft.
(d) Federal buildings that are of the type not included in Appendix
A of this subpart--(1) Process load buildings. For building types that
are not included in any of the building types listed in Tables 1-4 of
Appendix A of this subpart, Federal agencies must select the applicable
building type, climate zone, and fiscal year in which design for
construction began from Tables 1-4 of Appendix A of this subpart that
most closely corresponds to the proposed building without the process
load. The estimated fossil fuel-generated energy consumption of the
process load must be added to the maximum allowable fossil fuel-
generated energy consumption of the applicable building type for the
appropriate fiscal year and climate zone to calculate the maximum
allowable fossil fuel-generated energy consumption for the building.
The same estimated fossil fuel-generated energy consumption of the
process load that is added to the maximum allowable fossil fuel-
generated energy consumption of the applicable building must also be
used in determining the fossil fuel-generated energy consumption of the
proposed building.
(2) Mixed-use buildings. For buildings that combine two or more
building types with process loads or, alternatively, that combine one
or more building types with process loads with one or more building
types in Tables 1-4 of Appendix A of this subpart, the maximum
allowable fossil fuel-generated energy consumption of the proposed
building is equal to the averaged process load building values
determined under paragraph (d)(1) of this section and the applicable
building type values in Tables 1-4 of Appendix A of this subpart,
weighted by floor area.
Sec. 433.201 Fossil fuel-generated energy consumption determination.
(a) The fossil fuel-generated energy consumption of a proposed
building is calculated as follows:
Equation 1: Fossil fuel-generated energy consumption = ((3.412 kBtu/kwh
x Fossil Fuel Generation Factor x (Proposed Building Site Electricity
Consumption--Renewable Energy and CHP Electricity Deduction)/
Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of
Proposed Building x Other Fuels Source Energy Multiplier))/Floor Area
Whereas:
(1) Fossil Fuel-Generation Factor is equal to
(AEPcoal+AEPpl+AEPpc+AEPng+A
EPog)/Total AEP
Where
AEP = annual electrical production
pl = petroleum liquids
pc = petroleum coke
ng = natural gas
og = other gas
All values are taken from Table 3.2.A of the EIA Electric Power
Annual Report, which is updated on a periodic basis. DOE will on an
annual basis calculate the Fossil Fuel Generation Factor and publish
the result at the following Web address: http://energy.gov/eere/femp/federal-energy-management-program.
(2) Proposed Building Site Electricity Consumption equals the
estimated site electricity consumption of the proposed
[[Page 61725]]
building calculated in accordance with the Performance Rating Method in
Appendix G of ASHRAE 90.1-2010 (incorporated by reference; see Sec.
433.3) measured in kilowatt hours per year (kWh/yr).
(3) Renewable Energy and CHP Electricity Deduction equals the total
contribution specified in paragraph (b) of this section, measured in
kilowatt hours per year (kWh/yr).
(4) Electricity Source Energy Factor. For electricity purchased
from the grid, the Electricity Source Energy Factor is equal to 0.316.
For on-site electrical generation, the Electricity Source Factor is the
estimated efficiency of the generating equipment and any estimated
distribution losses that may occur.
(5) Direct Fossil Fuel Consumption of Proposed Building equals the
total site fossil fuel consumption of the proposed building calculated
in accordance with the Performance Rating Method in Appendix G of
ASHRAE 90.1-2010 (incorporated by reference; see Sec. 433.3),
excluding fossil fuel consumption for electricity generation, and
measured in thousands of British thermal units per year (kBtu/yr). This
includes any fossil fuel consumption attributable to non-electric power
(e.g., heat or steam) used in a proposed building that is supplied by a
district energy system or CHP system.
(6) Other Fuels Source Energy Multiplier. For purposes of Equation
1, the multipliers are as follows:
Natural gas 1.046
Fuel oil 1.00
Propane 1.00
District steam (non-CHP) 1.35
District steam (CHP) 2.30
District hot water 1.28
Chilled water 1.05
Coal 1.00
(7) Floor Area is the area enclosed by the exterior walls of a
building, both finished and unfinished, including indoor parking
facilities, basements, hallways, lobbies, stairways, and elevator
shafts.
(b) Renewable and CHP electricity deductions--(1) Renewable
electricity. The following renewable electricity generation qualifies
as a deduction under paragraph (a) of this section to the extent that
the renewable electricity generation represents new electric generating
capacity or a new renewable energy obligation on the part of the
agency, and not a reassignment of existing capacity or obligations:
(i) On-site renewable electricity generation is the amount of
electricity measured in kilowatt hours per year (kWh/yr) to be consumed
by the building that is contributed by renewable electricity generated
at the Federal site or facility on which the building will be located.
On-site renewable electricity can only be deducted if the environmental
attributes are not transferred.
(ii) Off-site renewable electricity generation is the amount of
renewable electricity measured in kilowatt hours per year (kWh/yr)
generated at a site or facility, either Federal or non-federal, other
than the Federal site or facility on which the building will be located
and that is designated for the purpose of complying with this section,
and may include renewable electricity generation purchased under Power
Purchase Agreements and Renewable Energy Certificates.
(2) Limitation on the use of renewable electricity generation for
new Federal buildings and major renovations. The environmental
attributes of the renewable electricity generation must not be
transferred. The agency must ensure that the environmental attributes
of renewable electricity generation are dedicated to meeting the fossil
fuel-generated energy consumption reduction requirements of the
proposed building.
(3) CHP deduction. Electricity associated with non-electric power
provided to a proposed building by a district energy system that is a
CHP system or an on-site CHP system qualifies as a deduction under
paragraph (a) of this section and is equal to the total heat delivered
to the proposed building from the direct energy system divided by total
heat produced by the CHP system, times the total electricity produced
by the CHP system.
Sec. 433.202 Petition for downward adjustment.
(a) New Federal buildings. (1) Upon petition by a Federal agency,
excluding the General Services Administration (GSA) but including GSA-
tenant agencies with significant control over building design, the
Director of the Federal Energy Management Program may adjust the
applicable maximum allowable fossil fuel-generated energy consumption
standard with respect to a specific building, upon written
certification from the head of the agency designing the building, or
the head of a GSA-tenant agency, that the requested adjustment is the
largest feasible reduction in fossil fuel-generated consumption that
can practicably be achieved in light of the specified functional needs
for that building, as demonstrated by:
(i) A statement sealed by the design engineer that the proposed
building was designed in accordance with the applicable energy
efficiency requirement in Subpart A of this Part;
(ii) A description of the technologies and practices that were
evaluated and rejected, including a justification of why they were not
included in the design for construction; and
(iii) Any other information the agency determines would help
explain its request;
(2) The head of the agency designing the building, or the head of a
GSA-tenant agency, must also include the following information in the
petition:
(i) A general description of the building, including but not
limited to location, use type, floor area, stories, and functional
needs;
(ii) The maximum allowable fossil fuel-generated energy consumption
for the building from Tables 1-4 of Appendix A of this subpart;
(iii) The estimated fossil fuel-generated energy consumption of the
proposed building;
(iv) A description of the proposed building's energy-related
features, including but not limited to:
(A) Building envelope, including, but not limited to, construction
materials, insulation levels, and the type, area, heat loss and solar
heat gain and visible light transmission coefficients of windows and
other glazing;
(B) HVAC system type and configuration;
(C) HVAC equipment sizes and efficiencies;
(D) Ventilation systems (including outdoor air volume, controls
technique, heat recovery systems, and economizers, if applicable);
(E) Service water heating system configuration and equipment
(including solar hot water, wastewater heat recovery, and controls for
circulating hot water systems, if applicable);
(F) Lighting technology, interior lighting power, and lighting
control techniques;
(G) Estimated process and plug loads; and
(H) Any other energy-related equipment; and
(3) The Director of the Federal Energy Management Program may
concur in whole or in part with a petition. Upon concurring in part,
the Director of the Federal Energy Management Program will establish an
applicable maximum allowable fossil fuel-generated energy consumption
standard with respect to a specific building other than the value put
forth in the petition.
(4) Petitions for downward adjustment should be submitted to [email protected], or to:
[[Page 61726]]
U.S. Department of Energy, Federal Energy Management Program, Director,
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000
Independence Ave. SW., Washington, DC 20585-0121.
(5) The Director will notify the requesting agency in writing
whether the petition for downward adjustment to the numeric reduction
requirement is approved, in whole or in part, or rejected, within 90
days of submittal. If the Director rejects the petition or establishes
a value other than that presented in the petition, the Director will
forward its reasons for rejection to the petitioning agency.
(b) Major renovations to Federal buildings. (1) Major renovation of
the whole building. Upon petition by a Federal agency, excluding the
General Services Administration (GSA) but including GSA-tenant agencies
with significant control over renovation design, the Director of the
Federal Energy Management Program will adjust the applicable maximum
allowable fossil fuel-generated energy consumption standard with
respect to a specific major renovation of a whole building, upon
written certification from the head of the agency designing the
building, or the head of a GSA-tenant agency, that the requested
adjustment is the largest feasible reduction in fossil fuel-generated
consumption that can practicably be achieved in light of the specified
functional needs for that building, as demonstrated by a statement
stamped by the design engineer that the proposed building was designed
consistent with the energy efficiency requirement in subpart A of this
part that corresponds to the date of the proposed building.
(2) Major renovation of a building system or component. Upon
petition by a Federal agency, excluding the General Services
Administration (GSA) but including GSA-tenant agencies with significant
control over renovation design, the Director of the Federal Energy
Management Program will adjust the applicable maximum allowable fossil
fuel-generated energy consumption standard with respect to a specific
major renovation limited to a building system or component, upon
written certification from the head of the agency designing the
building, or the head of a GSA-tenant agency, that the requested
adjustment is the largest feasible reduction in fossil fuel-generated
consumption that can practicably be achieved in light of the specified
functional needs for that building, as demonstrated by a statement
stamped by the design engineer that the proposed building incorporates
commercially available systems and/or components that provide a level
of energy efficiency that is life-cycle cost effective.
(3) Petitions for downward adjustment should be submitted to [email protected], or to:
U.S. Department of Energy, Federal Energy Management Program, Director,
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000
Independence Ave. SW., Washington, DC 20585-0121.
(4) The downward adjustment for a major renovation will be deemed
approved upon submittal of the certification required in paragraphs
(b)(1) or (b)(2) of this section, as applicable.
Appendix A to Subpart B of Part 433--Maximum Allowable Fossil Fuel-
Generated Energy Consumption
(a) For purposes of the tables in this Appendix, the climate
zones for each county in the United States are those listed in
Normative Appendix B Building Envelope Climate Criteria, Table B-1
U.S. Climate Zones, ASHRAE 90.1-2010 (incorporated by reference; see
Sec. 433.3).
(b) For purpose of Appendix A, the following definitions apply:
Education means a category of buildings used for academic or
technical classroom instruction, such as elementary, middle, or high
schools, and classroom buildings on college or university campuses.
Buildings on education campuses for which the main use is not as a
classroom are included in the category relating to their use. For
example, administration buildings are part of ``Office,''
dormitories are ``Lodging,'' and libraries are ``Public Assembly.''
Food Sales means a category of buildings used for retail or
wholesale of food. For example, grocery stores are ``Food Sales.''
Food Service means a category of buildings used for preparation
and sale of food and beverages for consumption. For example,
restaurants are ``Food Service.''
Health Care (Inpatient) means a category of buildings used as
diagnostic and treatment facilities for inpatient care.
Health Care (Outpatient) means a category of buildings used as
diagnostic and treatment facilities for outpatient care. Medical
offices are included here if they use any type of diagnostic medical
equipment (if they do not, they are categorized as an office
building).
Laboratory means a category of buildings equipped for scientific
experimentation or research as well as other technical, analytical
and administrative activities.
Lodging means a category of buildings used to offer multiple
accommodations for short-term or long-term residents, including
skilled nursing and other residential care buildings.
Mercantile (Enclosed and Strip Malls) means a category of
shopping malls comprised of multiple connected establishments.
Multi-Family High-Rise Residential Buildings means a category of
residential buildings that contain 3 or more dwelling units and that
is designed to be 4 or more stories above grade.
Office means a category of buildings used for general office
space, professional office, or administrative offices. Medical
offices are included here if they do not use any type of diagnostic
medical equipment (if they do, they are categorized as an outpatient
health care building).
Public Assembly means a category of public or private buildings,
or spaces therein, in which people gather for social or recreational
activities.
Public Order and Safety means a category of buildings used for
the preservation of law and order or public safety.
Religious Worship means a category of buildings in which people
gather for religious activities, (such as chapels, churches,
mosques, synagogues, and temples).
Retail (Other Than Mall) means a category of buildings used for
the sale and display of goods other than food.
Service means a category of buildings in which some type of
service is provided, other than food service or retail sales of
goods.
Warehouse and Storage means a category of buildings used to
store goods, manufactured products, merchandise, raw materials, or
personal belongings (such as self-storage).
Table 1--FY2013-FY2014 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type................. Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Education................................... College/university............ 89 88 87 81 59 84 71 73 65 70 77 65 92 82 97 146
[[Page 61727]]
Education................................... Elementary/middle school...... 54 54 52 49 40 50 45 41 39 39 42 37 47 43 48 71
Education................................... High school................... 65 65 63 59 43 61 52 53 48 51 56 48 67 60 71 106
Education................................... Other classroom education..... 36 36 35 33 24 34 29 30 27 29 31 27 37 33 40 59
Education................................... Preschool/daycare............. 70 69 67 63 52 65 58 53 50 51 54 47 60 56 62 92
Food Sales.................................. Convenience store............. 194 215 208 197 178 213 189 164 173 181 166 153 181 200 199 259
Food Sales.................................. Convenience store with gas.... 156 173 167 158 144 171 152 132 139 146 133 124 145 161 160 209
Food Sales.................................. Grocery store/food market..... 162 179 173 164 149 177 158 137 144 151 138 128 150 167 166 216
Food Sales.................................. Other food sales.............. 49 54 52 50 45 54 48 41 44 46 42 39 46 50 50 65
Food Service................................ Fast food..................... 378 395 402 358 333 407 338 303 323 327 308 286 339 373 375 490
Food Service................................ Other food service............ 112 117 118 106 97 120 100 90 96 98 91 84 100 110 111 144
Food Service................................ Restaurant/cafeteria.......... 204 214 216 195 177 219 183 164 175 180 166 154 182 202 203 264
Inpatient Health Care....................... Hospital/inpatient health..... 205 210 215 182 188 212 174 142 149 156 129 120 133 146 137 163
Laboratory.................................. Laboratory.................... 251 254 247 233 197 245 217 196 190 192 203 184 229 216 238 320
Lodging..................................... Dormitory/fraternity/sorority. 58 61 61 62 42 63 56 58 53 59 65 55 76 70 84 118
Lodging..................................... Hotel......................... 71 73 70 67 62 70 68 55 57 57 57 55 62 62 64 74
Lodging..................................... Motel or inn.................. 80 76 76 66 63 73 65 52 54 52 52 50 57 55 56 68
Lodging..................................... Nursing home/assisted living.. 118 12 117 110 93 115 103 93 90 91 96 87 108 102 112 151
Lodging..................................... Other lodging................. 76 73 72 63 60 69 62 50 52 50 50 48 54 53 54 65
Mercantile.................................. Enclosed mall................. 81 81 79 77 58 78 68 69 64 66 77 67 91 84 99 143
Mercantile.................................. Strip shopping mall........... 85 85 83 81 61 82 72 72 67 69 81 70 96 89 104 150
Office...................................... Administrative/profess. office 56 58 57 54 43 56 47 46 43 44 48 42 54 50 57 80
Office...................................... Bank/other financial.......... 80 82 80 77 62 79 67 65 61 62 67 59 77 71 81 114
Office...................................... Government office............. 70 72 71 67 54 70 59 57 54 55 59 52 68 62 71 100
Office...................................... Medical office (non- 48 49 48 46 37 48 40 39 37 37 40 36 46 42 48 68
diagnostic).
Office...................................... Mixed-use office.............. 65 67 65 63 50 65 54 53 50 51 55 48 63 58 66 93
Office...................................... Other office.................. 54 56 55 52 42 54 45 44 42 42 46 40 52 48 55 78
Outpatient Health Care...................... Clinic/other outpatient health 72 70 70 63 60 70 56 48 50 46 45 44 47 48 45 52
Outpatient Health Care...................... Medical office (diagnostic)... 48 46 47 42 40 46 38 32 33 31 30 30 32 32 30 35
Public Assembly............................. Entertainment/culture......... 33 33 32 30 26 32 28 26 25 25 26 24 30 28 31 42
Public Assembly............................. Library....................... 86 87 85 80 68 84 75 68 65 66 70 63 79 74 82 110
Public Assembly............................. Other public assembly......... 40 40 39 37 31 39 34 31 30 30 32 29 36 34 38 51
Public Assembly............................. Recreation.................... 37 38 37 35 29 36 32 29 28 29 30 27 34 32 35 47
Public Assembly............................. Social/meeting................ 39 39 38 36 31 38 34 30 29 30 31 28 35 33 37 49
Public Order & Safety....................... Fire station/police station... 92 93 91 86 73 90 80 72 70 71 75 68 84 80 88 118
Public Order & Safety....................... Other public order and safety. 84 85 83 78 66 82 73 66 64 65 68 62 77 73 80 107
Religious Worship........................... Religious worship............. 33 33 32 31 26 32 29 26 25 25 27 24 30 28 31 42
Retail (except malls)....................... Other retail.................. 70 72 70 68 50 69 59 60 56 56 66 58 79 73 85 123
Retail (except malls)....................... Retail store.................. 40 41 40 39 28 39 34 34 32 32 38 33 45 42 49 71
Retail (except malls)....................... Vehicle dealership showroom... 71 72 70 68 50 69 59 60 56 57 67 58 79 73 85 123
Service..................................... Other service................. 85 86 84 79 65 83 71 67 63 64 69 66 76 70 81 104
Service..................................... Post office/postal center..... 60 61 59 56 47 59 52 47 45 46 49 44 55 52 57 77
Service..................................... Repair shop................... 40 40 39 37 31 39 34 32 30 30 33 31 36 33 38 49
Service..................................... Vehicle service/repair shop... 46 47 46 43 36 45 39 37 34 35 38 36 42 38 44 57
Service..................................... Vehicle storage/maintenance... 20 20 20 19 15 20 17 16 15 15 16 16 18 17 19 25
Warehouse................................... Distribution/shipping center.. 18 23 24 26 14 26 20 27 24 23 35 32 49 41 59 108
Warehouse................................... Non-refrigerated warehouse.... 9 11 11 13 7 12 9 13 12 11 17 15 24 20 29 52
Warehouse................................... Refrigerated warehouse........ 97 100 102 90 81 101 80 75 78 79 74 68 82 89 90 123
[[Page 61728]]
Residential................................. Multi-family high-rise 48 46 39 41 24 40 28 41 37 41 45 38 52 46 55 72
residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 2--FY2015-FY2019 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type................. Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Education................................... College/university............ 69 69 67 63 46 65 55 56 51 55 60 51 71 64 76 113
Education................................... Elementary/middle school...... 42 42 40 38 31 39 35 32 30 31 32 29 36 34 37 56
Education................................... High school................... 51 50 49 46 34 48 40 41 37 40 44 37 52 47 55 83
Education................................... Other classroom education..... 28 28 28 26 19 27 23 23 21 22 24 21 29 26 31 46
Education................................... Preschool/daycare............. 55 54 52 49 40 50 45 41 39 39 42 37 47 43 48 72
Food Sales.................................. Convenience store............. 151 167 161 153 139 165 147 128 134 141 129 119 140 156 155 202
Food Sales.................................. Convenience store with gas.... 122 135 130 123 112 133 119 103 108 113 104 96 113 125 125 163
Food Sales.................................. Grocery store/food market..... 126 139 135 127 116 138 123 106 112 117 107 99 117 130 129 168
Food Sales.................................. Other food sales.............. 38 42 41 39 35 42 37 32 34 36 32 30 35 39 39 51
Food Service................................ Fast food..................... 294 307 313 279 259 317 263 235 251 255 239 222 264 290 292 381
Food Service................................ Other food service............ 87 91 92 83 75 93 78 70 74 76 71 66 78 86 86 112
Food Service................................ Restaurant/cafeteria.......... 159 166 168 151 138 170 143 128 136 140 129 120 142 157 158 206
Inpatient Health Care....................... Hospital/inpatient health..... 159 164 167 142 146 165 136 111 116 121 100 93 103 113 107 127
Laboratory.................................. Laboratory.................... 195 197 192 182 153 190 169 153 148 150 158 143 178 168 185 249
Lodging..................................... Dormitory/fraternity/......... 45 48 47 48 32 49 44 45 41 46 50 43 59 54 65 92
sorority......................
Lodging..................................... Hotel......................... 56 57 54 52 48 55 53 43 44 44 44 43 48 48 49 58
Lodging..................................... Motel or inn.................. 62 59 59 52 49 57 51 41 42 41 41 39 44 43 44 53
Lodging..................................... Nursing home/assisted living.. 92 93 91 86 72 90 80 72 70 71 75 67 84 79 87 117
Lodging..................................... Other lodging................. 59 56 56 49 47 54 49 39 40 39 39 37 42 41 42 51
Mercantile.................................. Enclosed mall................. 63 63 62 60 45 61 53 53 50 51 60 52 71 66 77 111
Mercantile.................................. Strip shopping mall........... 66 66 65 63 47 64 56 56 52 54 63 54 74 69 81 117
Office...................................... Administrative/profess. office 44 45 44 42 34 43 36 36 33 34 37 32 42 39 44 63
Office...................................... Bank/other financial.......... 62 64 62 60 48 62 52 51 48 49 52 46 60 55 63 89
Office...................................... Government office............. 55 56 55 52 42 54 46 45 42 43 46 40 53 48 55 78
Office...................................... Medical office (non- 37 38 37 36 29 37 31 30 29 29 31 28 36 33 38 53
diagnostic).
Office...................................... Mixed-use office.............. 51 52 51 49 39 50 42 41 39 40 43 38 49 45 51 72
Office...................................... Other office.................. 42 44 43 41 33 42 35 35 32 33 36 31 41 37 43 60
Outpatient Health Care...................... Clinic/other outpatient health 56 54 55 49 46 54 44 37 39 36 35 35 37 37 35 40
Outpatient Health Care...................... Medical office (diagnostic)... 37 36 36 32 31 36 29 25 26 24 23 23 25 25 23 27
Public Assembly............................. Entertainment/culture......... 25 26 25 24 20 25 22 20 19 20 21 19 23 22 24 32
Public Assembly............................. Library....................... 67 68 66 62 53 65 58 53 51 51 54 49 61 58 64 86
Public Assembly............................. Other public assembly......... 31 31 30 29 24 30 27 24 23 24 25 23 28 27 29 39
Public Assembly............................. Recreation.................... 29 29 29 27 23 28 25 23 22 22 23 21 26 25 27 37
Public Assembly............................. Social/meeting................ 30 31 30 28 24 29 26 24 23 23 24 22 28 26 29 38
Public Order & Safety....................... Fire station/police station... 72 73 71 67 56 70 62 56 54 55 58 53 66 62 68 92
Public Order & Safety....................... Other public order and safety. 65 66 65 61 51 64 57 51 50 50 53 48 60 56 62 83
Religious Worship........................... Religious worship............. 26 26 25 24 20 25 22 20 19 20 21 19 23 22 24 33
Retail (except malls)....................... Other retail.................. 55 56 55 53 39 53 46 47 44 44 52 45 61 57 66 96
Retail (except malls)....................... Retail store.................. 31 32 31 30 22 31 26 27 25 25 30 26 35 32 38 55
[[Page 61729]]
Retail (except malls)....................... Vehicle dealership showroom... 55 56 55 53 39 54 46 47 44 44 52 45 62 57 66 96
Service..................................... Other service................. 66 67 65 61 51 64 55 52 49 50 54 51 59 55 63 81
Service..................................... Post office/postal center..... 47 47 46 43 37 46 40 37 35 36 38 34 43 40 44 60
Service..................................... Repair shop................... 31 31 31 29 24 30 26 25 23 23 25 24 28 26 30 38
Service..................................... Vehicle service/repair shop... 36 36 36 34 28 35 30 28 27 27 29 28 33 30 34 44
Service..................................... Vehicle storage/maintenance... 16 16 15 15 12 15 13 12 12 12 13 12 14 13 15 19
Warehouse................................... Distribution/shipping center.. 14 18 18 20 11 20 15 21 19 18 27 25 38 32 46 84
Warehouse................................... Non-refrigerated warehouse.... 7 8 9 10 5 10 7 10 9 9 13 12 18 15 22 41
Warehouse................................... Refrigerated warehouse........ 76 78 79 70 63 78 62 58 61 61 58 53 64 69 70 96
Residential................................. Multi-family high-rise 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56
residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 3--FY2020-FY2024 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type................. Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Education................................... College/university............ 40 39 39 36 26 37 32 32 29 31 34 29 41 36 43 65
Education................................... Elementary/middle school...... 24 24 23 22 18 22 20 18 17 17 19 16 21 19 21 32
Education................................... High school................... 29 29 28 26 19 27 23 24 21 23 25 21 30 27 32 47
Education................................... Other classroom education..... 16 16 16 15 11 15 13 13 12 13 14 12 17 15 18 26
Education................................... Preschool/daycare............. 31 31 30 28 23 29 26 24 22 23 24 21 27 25 28 41
Food Sales.................................. Convenience store............. 86 95 92 87 39 95 84 73 77 81 74 68 80 89 88 115
Food Sales.................................. Convenience store with gas.... 70 77 74 70 64 76 68 59 62 65 59 55 65 72 71 93
Food Sales.................................. Grocery store/food market..... 72 80 77 73 66 79 70 61 64 67 61 57 67 74 74 96
Food Sales.................................. Other food sales.............. 22 24 23 22 20 24 21 18 19 20 19 17 20 22 22 29
Food Service................................ Fast food..................... 168 175 179 159 148 181 150 135 144 146 137 127 151 166 167 218
Food Service................................ Other food service............ 50 52 52 47 43 53 45 40 42 44 40 37 44 49 49 54
Food Service................................ Restaurant/cafeteria.......... 91 95 96 86 79 97 81 73 78 80 74 69 81 90 90 117
Inpatient Health Care....................... Hospital/inpatient health..... 91 94 95 81 83 94 77 63 66 69 57 53 59 65 61 73
Laboratory.................................. Laboratory.................... 112 113 110 104 88 109 97 87 84 86 90 82 102 96 106 142
Lodging..................................... Dormitory/fraternity/sorority. 26 27 27 27 19 28 25 26 23 26 29 24 34 31 37 52
Lodging..................................... Hotel......................... 32 33 31 30 27 31 30 25 25 25 25 24 28 28 28 33
Lodging..................................... Motel or inn.................. 36 34 34 29 28 32 29 23 24 23 23 22 25 25 25 30
Lodging..................................... Nursing home/assisted living.. 53 53 52 49 41 51 46 41 40 40 43 39 48 45 50 67
Lodging..................................... Other lodging................. 34 32 32 28 27 31 28 22 23 22 22 21 24 23 24 29
Mercantile.................................. Enclosed mall................. 36 36 35 34 26 35 30 31 29 29 34 30 41 37 44 63
Mercantile.................................. Strip shopping mall........... 38 38 37 36 27 36 32 32 30 31 36 31 43 39 46 67
Office...................................... Administrative/profess. office 25 26 25 24 19 25 21 20 19 20 21 19 24 22 25 36
Office...................................... Bank/other financial.......... 35 37 36 34 27 35 30 29 27 28 30 26 34 31 36 51
Office...................................... Government office............. 31 32 31 30 24 31 26 26 24 24 26 23 30 28 32 45
Office...................................... Medical office (non- 21 22 21 20 16 21 18 17 16 17 18 16 21 19 21 30
diagnostic).
Office...................................... Mixed-use office.............. 29 30 29 28 22 29 24 24 22 23 24 21 28 26 29 41
Office...................................... Other office.................. 24 25 24 23 19 24 20 20 18 19 20 18 23 21 24 35
Outpatient Health Care...................... Clinic/other outpatient health 32 31 31 28 26 31 25 21 22 20 20 20 21 21 20 23
Outpatient Health Care...................... Medical office (diagnostic)... 21 21 21 19 18 21 17 14 15 14 13 13 14 14 13 15
[[Page 61730]]
Public Assembly............................. Entertainment/culture......... 15 15 14 14 11 14 13 11 11 11 12 11 13 13 14 19
Public Assembly............................. Library....................... 38 39 38 36 30 37 33 30 29 29 31 28 35 33 36 49
Public Assembly............................. Other public assembly......... 18 18 17 16 14 17 15 14 13 14 14 13 16 15 17 23
Public Assembly............................. Recreation.................... 17 17 16 15 13 16 14 13 13 13 13 12 15 14 16 21
Public Assembly............................. Social/meeting................ 17 17 17 16 14 17 15 13 13 13 14 13 16 15 16 22
Public Order & Safety....................... Fire station/police station... 41 41 40 38 32 40 36 32 31 32 33 30 38 35 39 52
Public Order & Safety....................... Other public order and safety. 37 38 37 35 29 36 32 29 28 29 30 27 34 32 35 48
Religious Worship........................... Religious worship............. 15 15 14 14 12 14 13 11 11 11 12 11 13 13 14 19
Retail (except malls)....................... Other retail.................. 31 32 31 30 22 30 26 27 25 25 30 26 35 32 38 55
Retail (except malls)....................... Retail store.................. 18 18 18 17 14 17 15 15 14 14 17 15 20 19 22 31
Retail (except malls)....................... Vehicle dealership showroom... 31 32 31 30 22 31 26 27 25 25 30 26 35 32 38 55
Service..................................... Other service................. 38 38 37 35 29 37 32 30 28 28 31 29 34 31 36 46
Service..................................... Post office/postal center..... 27 27 26 25 21 26 23 21 20 20 22 20 24 23 25 34
Service..................................... Repair shop................... 18 18 18 17 14 17 15 14 13 13 14 14 16 15 17 22
Service..................................... Vehicle service/repair shop... 21 21 20 19 16 20 17 16 15 16 17 16 19 17 20 25
Service..................................... Vehicle storage/maintenance... 9 9 9 8 7 9 8 7 7 7 7 7 8 7 9 11
Warehouse................................... Distribution/shipping center.. 8 10 11 12 6 11 9 12 11 10 16 14 22 18 26 48
Warehouse................................... Non-refrigerated warehouse.... 4 5 5 6 3 6 4 6 5 5 8 7 11 9 13 23
Warehouse................................... Refrigerated warehouse........ 43 45 45 40 36 45 36 33 35 35 33 30 36 39 40 55
Residential................................. Multi-family high-rise 21 20 17 18 11 18 12 18 16 18 20 17 23 21 24 32
residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 4--FY2025-FY2029 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type................. Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Education................................... College/university............ 20 20 19 18 13 19 16 16 15 16 17 14 20 18 22 32
Education................................... Elementary/middle school...... 12 12 12 11 9 11 10 9 9 9 9 8 10 10 11 16
Education................................... High school................... 14 14 14 13 10 14 12 12 11 11 13 11 15 13 16 24
Education................................... Other classroom education..... 8 8 8 7 5 8 6 7 6 6 7 6 8 7 9 13
Education................................... Preschool/daycare............. 16 15 15 14 12 14 13 12 11 11 12 11 13 12 14 20
Food Sales.................................. Convenience store............. 43 48 46 44 40 47 42 36 38 40 37 34 40 44 44 58
Food Sales.................................. Convenience store with gas.... 35 38 37 35 32 38 34 29 31 32 30 27 32 36 36 46
Food Sales.................................. Grocery store/food market..... 36 40 38 36 33 39 35 30 32 34 31 28 33 37 37 48
Food Sales.................................. Other food sales.............. 11 12 12 11 10 12 11 9 10 10 9 9 10 11 11 15
Food Service................................ Fast food..................... 84 88 89 80 74 90 75 67 72 73 68 63 75 83 83 109
Food Service................................ Other food service............ 25 26 26 24 21 27 22 20 21 22 20 19 22 25 25 32
Food Service................................ Restaurant/cafeteria.......... 45 48 48 43 39 49 41 36 39 40 37 34 41 45 45 59
Inpatient Health Care....................... Hospital/inpatient health..... 45 47 48 41 42 47 39 32 33 35 29 27 29 32 30 36
Laboratory.................................. Laboratory.................... 56 56 55 52 44 54 48 44 42 43 45 41 51 48 53 71
Lodging..................................... Dormitory/fraternity/sorority. 13 14 14 14 9 14 13 13 12 13 14 12 17 16 19 26
Lodging..................................... Hotel......................... 16 16 15 15 14 16 15 12 13 13 13 12 14 14 14 17
Lodging..................................... Motel or inn.................. 18 17 17 15 14 16 15 12 12 12 12 11 13 12 12 15
Lodging..................................... Nursing home/assisted living.. 26 27 26 24 21 26 23 21 20 20 21 19 24 23 25 34
Lodging..................................... Other lodging................. 17 16 16 14 13 15 14 11 12 11 11 11 12 12 12 14
[[Page 61731]]
Mercantile.................................. Enclosed mall................. 18 18 18 17 13 17 15 15 14 15 17 15 20 19 22 32
Mercantile.................................. Strip shopping mall........... 19 19 18 18 13 18 16 16 15 15 18 16 21 20 23 33
Office...................................... Administrative/profess. office 12 13 13 12 10 12 10 10 10 10 11 9 12 11 13 18
Office...................................... Bank/other financial.......... 18 18 18 17 14 18 15 15 14 14 15 13 17 16 18 25
Office...................................... Government office............. 16 16 16 15 12 16 13 13 12 12 13 12 15 14 16 22
Office...................................... Medical office (non- 11 11 11 10 8 11 9 9 8 8 9 8 10 9 11 15
diagnostic).
Office...................................... Mixed-use office.............. 14 15 15 14 11 14 12 12 11 11 12 11 14 13 15 21
Office...................................... Other office.................. 12 12 12 12 9 12 10 10 9 9 10 9 12 11 12 17
Outpatient Health Care...................... Clinic/other outpatient health 16 15 16 14 13 15 13 11 11 10 10 10 11 11 10 12
Outpatient Health Care...................... Medical office (diagnostic)... 11 10 10 9 9 10 8 7 7 7 7 7 7 7 7 8
Public Assembly............................. Entertainment/culture......... 7 7 7 7 6 7 6 6 5 6 6 5 7 6 7 9
Public Assembly............................. Library....................... 19 19 19 18 15 19 17 15 15 15 16 14 18 17 18 24
Public Assembly............................. Other public assembly......... 9 9 9 8 7 9 8 7 7 7 7 6 8 8 8 11
Public Assembly............................. Recreation.................... 8 8 8 8 6 8 7 6 6 6 7 6 8 7 8 11
Public Assembly............................. Social/meeting................ 9 9 8 8 7 8 7 7 7 7 7 6 8 7 8 11
Public Order & Safety....................... Fire station/police station... 21 21 20 19 16 20 18 16 16 16 17 15 19 18 19 26
Public Order & Safety....................... Other public order and safety. 19 19 18 17 15 18 16 15 14 14 15 14 17 16 18 24
Religious Worship........................... Religious worship............. 7 7 7 7 6 7 6 6 6 6 6 5 7 6 7 9
Retail (except malls)....................... Other retail.................. 16 16 16 15 11 15 13 13 12 13 15 13 18 16 19 27
Retail (except malls)....................... Retail store.................. 9 9 9 9 6 9 8 8 7 7 8 7 10 9 11 16
Retail (except malls)....................... Vehicle dealership showroom... 16 16 16 15 11 15 13 13 13 13 15 13 18 16 19 27
Service..................................... Other service................. 19 19 19 18 14 18 16 15 14 14 15 15 17 16 18 23
Service..................................... Post office/postal center..... 13 13 13 12 10 13 12 10 10 10 11 10 12 12 13 17
Service..................................... Repair shop................... 9 9 9 8 7 9 7 7 7 7 7 7 8 7 8 11
Service..................................... Vehicle service/repair shop... 10 10 10 10 8 10 9 8 8 8 8 8 9 9 10 13
Service..................................... Vehicle storage/maintenance... 4 5 4 4 3 4 4 4 3 3 4 3 4 4 4 6
Warehouse................................... Distribution/shipping center.. 4 5 5 6 3 6 4 6 5 5 8 7 11 9 13 24
Warehouse................................... Non-refrigerated warehouse.... 2 2 3 3 1 3 2 3 3 3 4 3 5 4 6 12
Warehouse................................... Refrigerated warehouse........ 22 22 23 20 18 22 18 17 17 18 16 15 18 20 20 27
Residential................................. Multi-family high-rise 11 10 9 9 5 9 6 9 8 9 10 9 11 10 12 16
residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PART 435--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND
CONSTRUCTION OF NEW FEDERAL LOW-RISE RESIDENTIAL BUILDINGS
0
7. 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
8. In Sec. 435.1, paragraph (b) is added to read as follows:
Sec. 435.1 Purpose and scope.
* * * * *
(b) This part also establishes a maximum allowable fossil fuel-
generated energy consumption standard for new Federal buildings that
are low-rise residential buildings and major renovations to Federal
buildings that are low-rise residential buildings, for which design for
construction began on or after October 14, 2015.
0
9. In Sec. 435.2:
0
a. Add in alphabetical order, the definitions of ``Combined heat and
power (CHP) system,'' ``Construction cost,'' ``District energy
system,'' ``Fiscal year (FY),'' ``Major renovation,'' ``Power purchase
agreement,'' and ``Renewable energy certificate'';
0
b. Revise the definitions of ``New Federal building'' and ``Proposed
building''; and
0
c. Remove the definitions of ``Life-cycle cost'' and ``Life-cycle cost-
effective''.
The additions and revisions read as follows:
Sec. 435.2 Definitions.
* * * * *
Combined heat and power (CHP) system means an integrated system,
located at or near a building or facility, that is used to generate
both heat and electricity for use in the building or facility.
[[Page 61732]]
Construction cost means all costs associated with design and
construction of a building. It includes the cost of design, permitting,
construction (materials and labor), and building commissioning. It does
not include legal or administrative fees, or the cost of acquiring the
land.
* * * * *
District energy system means a central energy conversion plant and
transmission and distribution system that provides thermal energy to a
group of buildings (heating via hot water or steam, and/or cooling via
chilled water). This definition only includes thermal energy systems;
central energy supply systems that only provide electricity are
excluded from this definition.
* * * * *
Fiscal Year (FY) begins on October 1 of the year prior to the
specified calendar year and ends on September 30 of the specified
calendar year
* * * * *
Major renovation means changes to a building that provide
significant opportunities for compliance with applicable requirements
in this part. For subpart B --reduction in fossil fuel-related energy
consumption, for example, replacement of the HVAC system, lighting
system, building envelope, or other components of the building that
have a major impact on energy usage would constitute a major
renovation.
New Federal building means any new building (including a complete
replacement of an existing building from the foundation up) to be
constructed by, or for the use of, any Federal agency. Such term shall
include buildings built for the purpose of being leased by a Federal
agency, and privatized military housing.
Power purchase agreement means an agreement with an electricity
producer for all or a specified portion of the electricity produced
from a particular power source, in this case a renewable energy source,
for a specified period of time.
Proposed building means the design for construction of a new
Federal low-rise residential building, or major renovation to a Federal
low-rise residential building, proposed for construction.
Renewable energy certificate means the technology and environmental
(non-energy) attributes that represent proof that 1 megawatt-hour (MWh)
of electricity was generated from a renewable energy resource, and can
be sold separately from the underlying generic electricity with which
it is associated.
Sec. 435.3 [Amended]
0
10. Amend Sec. 435.3 by adding to the end of paragraph (b)(2) ``,
435.201, Appendix A to Subpart B''.
0
11. Revise Sec. 435.4 to read as follows:
Sec. 435.4 Life-cycle cost-effective.
Except as specified in subparts A, B or C of this part, Federal
agencies shall determine life-cycle cost-effectiveness by using the
procedures set out in subpart A of part 436. A Federal agency may
choose to use any of four methods, including life-cycle cost, net
savings, savings-to-investment ratio, and adjusted internal rate of
return using the discount rate published in the annual supplement to
the Life Cycle Costing Manual for the Federal Energy Management Program
(NIST 85-3273).
0
12. Subpart B is added to part 435 to read as follows:
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec.
435.200 Fossil fuel-generated energy consumption requirement.
435.201 Fossil fuel-generated energy consumption determination.
435.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 435--Maximum Allowable Fossil Fuel-
Generated Energy Consumption
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec. 435.200 Fossil fuel-generated energy consumption requirement.
(a) New Federal buildings. New Federal buildings that are low-rise
residential buildings, for which design for construction began on or
after October 14, 2015, must be designed to meet the requirements of
paragraph (c) of this section if the cost of the building is at least
$2,500,000 (in 2007 dollars, adjusted for inflation).
(b) Major renovations. (1) Major renovations to Federal buildings
that are low-rise residential buildings, for which design for
construction began on or after October 14, 2015, must be designed to
meet the requirements of paragraph (c) of this section if the cost of
the major renovation is at least $2,500,000 (in 2007 dollars, adjusted
for inflation).
(2) This subpart applies only to the portions of the proposed
building or proposed building systems that are being renovated and to
the extent that the scope of the renovation permits compliance with the
applicable requirements in this subpart. Unaltered portions of the
proposed building or proposed building systems are not required to
comply with this subpart.
(3) For leased buildings, this subpart applies to major renovations
only if the proposed building was originally built for the use of any
Federal agency, including being leased by a Federal agency.
(c) Federal buildings that are of the type included in Appendix A
of this subpart--(1) Design for construction began during fiscal year
2014 through fiscal year 2029. The fossil fuel-generated energy
consumption of the proposed building, based on the building design and
calculated according to Sec. 435.201(a), must not exceed the value
identified in Tables 1-4 of Appendix A of this subpart for the
associated building type, climate zone, and fiscal year in which design
for construction began.
(2) Design for construction began during or after fiscal year 2030.
The fossil fuel-generated energy consumption of the proposed building,
based on building design and calculated according to Sec. 435.201(a),
must be zero.
Sec. 435.201 Fossil fuel-generated energy consumption determination.
(a) The fossil fuel-generated energy consumption of a proposed
design is calculated as follows:
Equation 1: Fossil Fuel-Generated Energy Consumption = ((3.412 kBtu/kwh
x Fossil Fuel-Generation Factor x (Proposed Building Site Electricity
Consumption - Renewable Energy and CHP Electricity Deduction)/
Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of
Proposed Building x Other Fuels Source Energy Multiplier))/Floor Area
Whereas:
(1) Fossil Fuel-Generation Factor is equal to (AEPcoal +
AEPpl + AEPpc + AEPng +
AEPog)/Total AEP
Where
AEP = annual electrical production
pl = petroleum liquids
pc = petroleum coke
ng = natural gas
og = other gas
All values are taken from Table 3.2.A of the EIA Electric Power
Annual Report, which is updated on a periodic basis. DOE will on an
annual basis calculate the Fossil Fuel Generation Factor and publish
the result at the following web address: http://energy.gov/eere/femp/federal-energy-management-program
(2) Proposed Building Site Electricity Consumption equals the
estimated site electricity consumption of the proposed building
calculated in accordance with the Simulated Performance Alternative in
Section 405 of the IECC 2009 (incorporated by reference; see Sec.
435.3), measured in kilowatt hours per year (kWh/yr).
[[Page 61733]]
(3) Renewable Energy and CHP Electricity Deduction equals the total
contribution specified in paragraph (b) of this section, measured in
kilowatt hours per year (kWh/yr).
(4) Electricity Source Energy Factor For electricity purchased from
the grid, the Electricity Source Factor is equal to 0.316. For on-site
electrical generation, it is the estimated efficiency of the generating
equipment and any estimated distribution losses that may occur.
(5) Direct Fossil Fuel Consumption of Proposed Building equals the
total site fossil fuel consumption of the proposed building calculated
in accordance with the Simulated Performance Alternative in Section 405
of the IECC 2009 (incorporated by reference; see Sec. 435.3),
excluding fossil fuel consumption for electricity generation, and
measured in thousands of British thermal units per year per (kBtu/yr).
This includes any fossil fuel consumption attributable to non-electric
power (e.g., heat or steam) used in a proposed building that is
supplied by a district energy system or CHP system.
(6) Other Fuels Source Energy Multiplier For purposes of Equation
1, the multipliers are as follows:
Natural gas 1.046
Fuel oil 1.00
Propane 1.00
District Steam (non-CHP) 1.35
District steam (CHP) 2.30
District hot water 1.28
Chilled water 1.05
Coal 1.00
(7) Floor Area is the floor area of the structure that is enclosed
by exterior walls, including finished or unfinished basements, finished
or heated space in attics, and garages if they have an uninsulated wall
in common with the house. Not included are crawl spaces, and sheds and
other buildings that are not attached to the house.
(b) Renewable energy and CHP electricity deductions--(1) Renewable
electricity. The following renewable electricity generation qualifies
as a deduction under paragraph (a) of this section to the extent that
the renewable electricity generation represents new electric generating
capacity or a new renewable energy obligation on the part of the
agency, and not a reassignment of existing capacity or obligations:
(i) On-site renewable electricity generation is the amount of
electricity measured in kilowatt hours per year (kWh/yr) to be consumed
by the building that is contributed by renewable electricity generated
at the Federal site or facility on which the building will be located.
The environmental attributes of the on-site renewable electricity
generation must not be transferred.
(ii) Off-site renewable electricity generation is the amount of
renewable electricity measured in kilowatt hours per year (kWh/yr)
generated at a site or facility, either Federal or non-federal, other
than the Federal site or facility on which the building will be
located, and may include renewable energy produced under a Power
Purchase Agreement and represented by Renewable Energy Certificates.
(2) Limitation on the use of renewable electricity generation for
new Federal buildings and major renovations. The environmental
attributes of the renewable energy generation must not be transferred.
The agency must ensure that the environmental attributes of onsite
renewable energy generation are dedicated to meeting the fossil fuel-
generated energy consumption reduction requirements of the proposed
building.
(3) CHP deduction. Electricity associated with non-electric power
provided to a proposed building by a district energy system that is a
CHP system or an on-site CHP system qualifies as a deduction under
paragraph (a) and is equal to the total heat delivered to the proposed
building from the direct energy system divided by total heat produced
by the CHP system, times the total electricity produced by the CHP
system.
Sec. 435.202 Petition for downward adjustment.
(a) New Federal buildings. (1) Upon petition by a Federal agency,
excluding the General Services Administration (GSA) but including GSA-
tenant agencies with significant control over building design, the
Director of the Federal Energy Management Program may adjust the
applicable maximum allowable fossil fuel-generated energy consumption
standard with respect to a specific building, upon written
certification from the head of the agency designing the building, or
the head of a GSA-tenant agency, that the requested adjustment is the
largest feasible reduction in fossil fuel-generated consumption that
can practicably be achieved in light of the specified functional needs
for that building, as demonstrated by:
(i) A statement sealed by the design engineer that the proposed
building was designed in accordance with the applicable energy
efficiency requirement in subpart A of this Part, and that each energy
consuming product included in the proposed building that is of a
product category covered by the ENERGY STAR program or the Federal
Energy Management Program for designated products is an ENERGY STAR
product or a product meeting the FEMP designation criteria, as
applicable;
(ii) A description of the technologies and practices that were
evaluated and rejected, including a justification of why they were not
included in the design for construction; and
(iii) Any other information the agency determines would help
explain its request;
(2) The head of the agency designing the building, or the head of a
GSA-tenant agency, must also include the following information in the
petition:
(i) A general description of the building, including but not
limited to location, use type, floor area, stories, and functional
needs;
(ii) The maximum allowable fossil fuel-generated energy consumption
for the building from Tables 1-4 of Appendix A of this subpart;
(iii) The estimated fossil fuel-generated energy consumption of the
proposed building;
(iv) A description of the proposed building's energy-related
features, including but not limited to:
(A) Building envelope, including, but not limited to, construction
materials, insulation levels, and the type, area, heat loss and solar
heat gain and visible light transmission coefficients of windows and
other glazing;
(B) HVAC system type and configuration;
(C) HVAC equipment sizes and efficiencies;
(D) Ventilation systems (including outdoor air volume, controls
technique, heat recovery systems, and economizers, if applicable);
(E) Service water heating system configuration and equipment
(including solar hot water, wastewater heat recovery, and controls for
circulating hot water systems, if applicable);
(F) Lighting technology, interior lighting power, and lighting
control techniques;
(G) Estimated process and plug loads; and
(H) Any other energy-related equipment; and
(3) The Director of the Federal Energy Management Program may
concur in whole or in part with a petition. Upon concurring in part,
the Director of the Federal Energy Management Program will establish an
applicable maximum allowable fossil fuel-generated energy consumption
standard with respect to a specific building other than the value put
forth in the petition.
(4) Petitions for downward adjustment should be submitted to [email protected], or to:
[[Page 61734]]
U.S. Department of Energy, Federal Energy Management Program, Director,
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000
Independence Ave. SW., Washington, DC 20585-0121.
(5) The Director will notify the requesting agency in writing
whether the petition for downward adjustment to the numeric reduction
requirement is approved, in whole or in part, or rejected, within 90
days of submittal. If the Director rejects -the petition or establishes
a value other than that presented in the petition, the Director will
forward its reasons for rejection to the petitioning agency.
(b) Major renovations to Federal buildings--(1) Major renovation of
the whole building. Upon petition by a Federal agency, excluding the
General Services Administration (GSA) but including GSA-tenant agencies
with significant control over renovation design, the Director of the
Federal Energy Management Program will adjust the applicable maximum
allowable fossil fuel-generated energy consumption standard with
respect to a specific major renovation of a whole building, upon
written certification from the head of the agency designing the
building, or the head of a GSA-tenant agency, that the requested
adjustment is the largest feasible reduction in fossil fuel-generated
consumption that can practicably be achieved in light of the specified
functional needs for that building, as demonstrated by a statement
stamped by the design engineer that the proposed building was designed
consistent with the energy efficiency requirement in subpart A of this
Part that corresponds to the date of the proposed building.
(2) Major renovation of a building system or component. Upon
petition by a Federal agency, excluding the General Services
Administration (GSA) but including GSA-tenant agencies with significant
control over renovation design, the Director of the Federal Energy
Management Program will adjust the applicable maximum allowable fossil
fuel-generated energy consumption standard with respect to a specific
major renovation limited to a building system or component, upon
written certification from the head of the agency designing the
building, or the head of a GSA-tenant agency, that the requested
adjustment is the largest feasible reduction in fossil fuel-generated
consumption that can practicably be achieved in light of the specified
functional needs for that building, as demonstrated by a statement
stamped by the design engineer that the proposed building incorporates
commercially available systems and/or components that provide a level
of energy efficiency that is life-cycle cost effective.
(3) Petitions for downward adjustment should be submitted to [email protected], or to:
U.S. Department of Energy, Federal Energy Management Program, Director,
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000
Independence Ave. SW., Washington, DC 20585-0121.
(4) The downward adjustment for a major renovation will be deemed
approved upon submittal of the certification required in paragraphs
(b)(1) or (2) of this section, as applicable.
Appendix A to Subpart B of Part 435--Maximum Allowable Fossil Fuel-
Generated Energy Consumption
(a) For purposes of the tables in this Appendix, the climate
zones for each county in the United States are those listed in
Figure 301.1 of IECC 2009 (incorporated by reference; see Sec.
435.3).
(b) For purpose of Appendix A, the following definitions apply:
Manufactured Home means a dwelling unit built to the Federal
Manufactured Home Construction and Safety Standards in 24 CFR part
3280, that is built on a permanent chassis and moved to a site. It
may be placed on a permanent or temporary foundation and may contain
one or more rooms.
Multi-Family in 2-4 Unit Buildings means a category of
structures that is divided into living quarters for two, three, or
four families or households in which one household lives above or
beside another. This category also includes houses originally
intended for occupancy by one family (or for some other use) that
have since been converted to separate dwellings for two to four
families.
Multi-Family in 5 or More Unit Buildings means a category of
structures that contain living quarters for five or more households
or families and in which one household lives above or beside
another.
Single-Family Attached means a building with two or more
connected dwelling units, generally with a shared wall, each
providing living space for one household or family. Attached houses
are considered single-family houses as long as they are not divided
into more than one dwelling unit and they have independent outside
entrances. A single-family house is contained within walls extending
from the basement (or the ground floor, if there is no basement) to
the roof. Townhouses, row houses, and duplexes are considered
single-family attached dwelling units, as long as there is no
dwelling unit above or below another. This includes modular homes
but does not include manufactured homes.
Single-Family Detached means a separate, unconnected dwelling
unit, not sharing a wall with any other building or dwelling unit,
which provides living space for one household or family. A single-
family house is contained within walls extending from the basement
(or the ground floor, if there is no basement) to the roof. This
includes modular homes but does not include manufactured homes.
Table 1--FY2013-FY2014 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building activity/type........ Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Residential................................. Mobile/manufactured home...... 56 54 46 48 28 47 33 48 43 49 53 45 61 54 64 84
Residential................................. Single-family detached........ 42 40 34 36 21 35 24 36 32 36 39 33 45 40 47 62
Residential................................. Single-family attached........ 48 46 39 41 24 40 28 41 37 41 45 38 52 46 55 72
Residential................................. Multi-family (in 2-4 unit 70 68 57 60 35 59 41 60 54 61 66 56 76 68 80 105
building).
Residential................................. Multi-family (in 5+ unit 48 46 39 41 24 40 28 41 37 41 45 38 52 46 55 72
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 61735]]
Table 2--FY2014-FY2019 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone: 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building activity/type........ Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Residential................................. Mobile/manufactured home...... 44 42 35 37 22 36 25 37 34 38 41 35 47 42 50 65
Residential................................. Single-family detached........ 32 31 26 28 16 27 19 28 25 28 30 26 35 31 37 49
Residential................................. Single-family attached........ 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56
Residential................................. Multi-family (in 2-4 unit 55 53 44 47 27 46 32 47 42 47 51 44 59 53 62 82
building).
Residential................................. Multi-family (in 5+ unit 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 3--FY2020-FY2024 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building activity/type........ Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Residential................................. Mobile/manufactured home...... 25 24 20 21 12 21 15 21 19 22 23 20 27 24 28 37
Residential................................. Single-family detached........ 18 18 15 16 9 15 11 16 14 16 17 15 20 18 21 28
Residential................................. Single-family attached........ 21 21 17 18 11 18 12 18 16 18 20 17 23 21 24 32
Residential................................. Multi-family (in 2-4 unit 31 30 25 27 15 26 18 27 24 27 29 25 34 30 36 47
building).
Residential................................. Multi-family (in 5+ unit 21 20 17 18 11 18 12 18 16 18 20 17 23 21 24 32
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 4--FY2024-FY2029 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
3B 3B
Building category Climate zone 1 2A 2B 3A coast other 3C 4A 4B 4C 5A 5B 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building activity/type........ Fossil fuel-generated energy use intensity
---------------------------------------------------------------------------------------------------------------------------------------------------
Residential................................. Mobile/manufactured home...... 12 12 10 11 6 10 7 11 10 11 12 10 13 12 14 19
Residential................................. Single-family detached........ 9 9 8 8 5 8 5 8 7 8 9 7 10 9 11 14
Residential................................. Single-family attached........ 11 10 9 9 5 9 6 9 8 9 10 9 12 10 12 16
Residential................................. Multi-family (in 2-4 unit 16 15 13 13 8 13 9 13 12 14 15 13 17 15 18 23
building).
Residential................................. Multi-family (in 5+ unit 11 10 9 9 5 9 6 9 8 9 10 9 11 10 12 16
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[FR Doc. 2014-24151 Filed 10-10-14; 8:45 am]
BILLING CODE 6450-01-P