[Federal Register Volume 87, Number 67 (Thursday, April 7, 2022)]
[Rules and Regulations]
[Pages 20267-20295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06949]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules
and Regulations
[[Page 20267]]
DEPARTMENT OF ENERGY
10 CFR Part 433
[EERE-2022-BT-STD-0012]
RIN 1904-AE44
Baseline Energy Efficiency Standards Update for New Federal
Commercial and Multi-Family High-Rise Residential Buildings
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Final rule.
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SUMMARY: The U.S. Department of Energy (DOE) is publishing this final
rule to implement provisions in the Energy Conservation and Production
Act (ECPA) that require DOE to update the baseline Federal energy
efficiency performance standards for the construction of new Federal
commercial and multi-family high-rise residential buildings. This rule
updates the baseline Federal commercial standard to the American
Society of Heating, Refrigerating, and Air-Conditioning Engineers
(ASHRAE) Standard 90.1-2019.
DATES: This rule is effective June 6, 2022.
The incorporation by reference of certain material listed in this
rule is approved by the Director of the Federal Register as of June 6,
2022. The incorporation by reference of certain other material listed
in this rule was approved by the Director of the Federal Register
through January 5, 2016.
All Federal agencies shall design new Federal buildings that are
commercial and multi-family high-rise residential buildings, for which
design for construction began on or after April 7, 2023, using ASHRAE
Standard 90.1-2019 as the baseline standard for 10 CFR part 433.
ADDRESSES: The docket, which includes this Federal Register notice and
other supporting documents/materials, is available for review at
www.regulations.gov. All documents in the docket are listed in the
www.regulations.gov index. However, some documents listed in the index,
such as those containing information that is exempt from public
disclosure, may not be publicly available.
This rulemaking can be identified by docket number EERE-2022-BT-
STD-0012 and/or RIN number 1904-AE44. A link to the docket web page can
be found at www.energy.gov/eere/femp/notices-and-rules-related-federal-energy-management. The docket web page contains instructions on how to
access all documents, including public comments, in the docket.
FOR FURTHER INFORMATION CONTACT:
For technical issues: Nicolas Baker, U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, Federal Energy
Management Program, Mailstop EE-5F, 1000 Independence Avenue SW,
Washington, DC 20585, (202) 586-8215, Email: [email protected].
For legal issues: Matthew Ring, U.S. Department of Energy, Office
of the General Counsel, Forrestal Building, GC-33, 1000 Independence
Avenue SW, Washington, DC 20585, (202) 586-2555, Email:
[email protected].
SUPPLEMENTARY INFORMATION: DOE maintains a previously approved
incorporation by reference and incorporates by reference the following
standard into 10 CFR part 433:
ANSI/ASHRAE/IES Standard 90.1-2013, Energy Standard for Buildings
Except Low-Rise Residential Buildings, I-P Edition, Copyright 2013.
ANSI/ASHRAE/IES Standard 90.1-2019, Energy Standard for Buildings
Except Low-Rise Residential Buildings, I-P Edition, Copyright 2019.
Copies of ANSI/ASHRAE/IES Standards 90.1-2013 and 2019 can be obtained
from ASHRAE, Inc., 1791 Tullie Circle, NE, Atlanta, GA 30329, or
www.ashrae.org.
For a further discussion of these standards, see section VII.N of
this document.
Table of Contents
I. Summary of the Final Rule
II. Introduction
A. Energy Conservation and Production Act Requirements
B. ASHRAE Standard 90.1
C. Regulatory Requirements of 10 CFR Part 433
D. Synopsis of Changes to ASHRAE Standard 90.1 Between ASHRAE
Standard 90.1-2013 and ASHRAE Standard 90.1-2019
1. Changes in ASHRAE From Standard 90.1-2013 to Standard 90.1-
2016
a. Fixed Baseline
b. Revisions and Additions to the Formula for Demonstrating
Compliance With the Appendix G Performance Rating Method
2. Changes in ASHRAE From Standard 90.1-2016 to Standard 90.1-
2019
III. Discussion of the Final Rule
A. DOE's Analysis of the Cost-Effectiveness of ASHRAE Standard
90.1 as Applied to New Federal Buildings
B. Federal Agency Implementation of Changes to the Appendix G
Performance Rating Method in ASHRAE Standard 90.1-2016 and ASHRAE
Standard 90.1-2019
C. Definition of ``New Federal Building''
D. Programmatic Clarifications for Implementing ASHRAE Standard
90.1
1. Whole Building Simulation and Model for Appendix G
Performance Rating Method
2. DOE and Agency Roles When Applying ASHRAE Standard 90.1
IV. Methodology, Analytical Results, and Conclusion
A. Cost-Effectiveness
B. Monetization of Emissions Reduction Benefits
1. Monetization of Greenhouse Gas Emissions
a. Social Cost of Carbon
b. Social Cost of Methane and Nitrous Oxide
2. Monetization of Other Air Pollutants
C. Conclusion
V. Compliance Date
VI. Reference Resources
A. Resources for Commercial and Multi-Family High-Rise
Residential Buildings
VII. Regulatory Analysis
A. Review Under Executive Order 12866, ``Regulatory Planning and
Review''
B. Review Under the Administrative Procedure Act
C. Review Under the Regulatory Flexibility Act
D. Review Under the Paperwork Reduction Act of 1995
E. Review Under the National Environmental Policy Act of 1969
F. Review Under Executive Order 13132, ``Federalism''
G. Review Under Executive Order 12988, ``Civil Justice Reform''
H. Review Under the Unfunded Mandates Reform Act of 1995
I. Review Under the Treasury and General Government
Appropriations Act of 1999
J. Review Under Executive Order 12630, ``Governmental Actions
and Interference
[[Page 20268]]
With Constitutionally Protected Property Rights''
K. Review Under the Treasury and General Government
Appropriations Act, 2001
L. Review Under Executive Order 13211, ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution,
or Use''
M. Review Under Section 32 of the Federal Energy Administration
Act of 1974
N. Description of Materials Incorporated by Reference
VIII. Congressional Notification
IX. Approval of the Office of the Secretary
I. Summary of the Final Rule
Section 305 of ECPA, as amended, requires DOE to determine whether
the energy efficiency standards for new Federal buildings \1\ should be
updated to reflect revisions to ASHRAE Standard 90.1 based on the cost-
effectiveness of the revisions. (42 U.S.C. 6834(a)(3)(B)) Accordingly,
DOE conducted a cost-effectiveness analysis that found ASHRAE Standard
90.1-2019 to be cost-effective for new Federal commercial and multi-
family high-rise residential buildings. DOE's assumptions and
methodology for the cost-effectiveness of this rule are based on DOE's
State building energy codes program's cost-effectiveness analysis of
ASHRAE Standard 90.1-2016 and ASHRAE Standard 90.1-2019.\2\ These
assumptions and methodology also provide the basis for the
environmental assessment (EA) for this rulemaking. Therefore, in this
final rule, DOE updates the energy efficiency standards for new Federal
buildings to ASHRAE Standard 90.1-2019 for buildings for which design
for construction begins on or after one year after this rule is
published in the Federal Register. (42 U.S.C. 6834(a)(3)(A))
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\1\ For the purposes of discussion in this document, all
references to ``Federal buildings'' subject to 10 CFR part 433 will
include commercial and multi-family high-rise residential unless
otherwise noted.
\2\ See DOE's State building energy codes program analyses of
the cost savings of the 2016 and 2019 ASHRAE 90.1 Standards at
www.energycodes.gov/sites/default/files/2020-07/90.1-2016_National_Cost-Effectiveness.pdf and www.energycodes.gov/sites/default/files/2021-07/90.1-2019_National_Cost-Effectiveness.pdf,
respectively.
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To ensure consistency with ASHRAE Standard 90.1-2019, this final
rule also limits the types of process and receptacle loads that may be
excluded from the calculation of the 30 percent improvement beyond
ASHRAE Standard 90.1 by revising 10 CFR 433.101(b) to require Federal
agencies to include unregulated energy use (i.e., process loads and
receptacle loads not within the scope of ASHRAE Standard 90.1) when
calculating the 30 percent improvement beyond ASHRAE Standard 90.1,
except for energy-intensive process loads that are: (i) Driven by
mission and operational requirements, not necessarily buildings, and
(ii) not influenced by conventional building energy conservation
measures.
This final rule also amends the definition for ``new Federal
buildings'' in 10 CFR 433.2 to include buildings leased by Federal
agencies and privatized military housing in accordance with amendments
to the underlying statutory definition of this term made by the Energy
Independence and Security Act (EISA) 2007.\3\ This final rule also
makes technical amendments to the definitions in 10 CFR 433.2 for
consistency with the materials incorporated by reference in 10 CFR
433.3.
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\3\ See section 433(b) of EISA 2007, Public Law 110-140, 121
Stat. 1614 (Dec. 19, 2007).
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Additionally, in the discussion of final rule, DOE clarifies and
reiterates several programmatic principles related to agencies'
implementation of ASHRAE Standard 90.1. These clarifications do not
represent changes to the regulations in 10 CFR part 433. However, DOE
frequently receives repeat questions from Federal agencies expressing
confusion over particular aspects of implementing ASHRAE Standard 90.1.
Accordingly, DOE wishes to reduce agencies' confusion by clarifying
several important principles of implementing ASHRAE Standard 90.1 in
the discussion of final rule.
II. Introduction
A. Energy Conservation and Production Act Requirements
ECPA, as amended, requires DOE to establish building energy
efficiency standards for all new Federal buildings. (42 U.S.C.
6834(a)(1)) The standards established under section 305(a)(1) of ECPA
must contain energy efficiency measures that are technologically
feasible, economically justified, and meet the energy efficiency levels
in the applicable voluntary consensus energy codes specified in section
305. (42 U.S.C. 6834(a)(1)-(3)) Section 306(a) of ECPA further provides
that each Federal agency and the Architect of the Capitol must adopt
procedures to ensure that new Federal buildings will meet or exceed the
Federal building energy efficiency standards established under section
305. (42 U.S.C. 6835(a)) ECPA Section 306(b) bars the head of a Federal
agency from expending Federal funds for the construction of a new
Federal building unless the building meets or exceeds the applicable
baseline Federal building energy standards established under section
305. (42 U.S.C. 6835(b))
Under section 305 of ECPA, the referenced voluntary consensus code
for new Federal commercial buildings (including multi-family high rise
residential buildings) is ASHRAE Standard 90.1. (42 U.S.C.
6834(a)(2)(A)) DOE codified this referenced code as the baseline
Federal building standard in its existing energy efficiency standards
found in 10 CFR part 433. Also pursuant to section 305 of ECPA, DOE
must establish, by rule, Federal building energy efficiency performance
standards for new Federal buildings that require such buildings be
designed to achieve energy consumption levels that are at least 30
percent below the levels established in the referenced code (baseline
Federal building standard), if life-cycle cost (LCC) effective. (42
U.S.C. 6834(a)(3)(A)(i)(I)) These requirements do not extend to
renovations or modifications to existing buildings.
Additionally, under section 305 of ECPA, not later than one year
after the date of approval of each subsequent revision of the ASHRAE
Standard or the International Energy Conservation Code (IECC), DOE must
determine whether to amend the baseline Federal building standards with
the revised voluntary standard based on the cost-effectiveness of the
revised voluntary standard. (42 U.S.C. 6834(a)(3)(B)) It is this
requirement that this rulemaking addresses. ASHRAE has updated Standard
90.1 from the version currently referenced in DOE's regulations at 10
CFR part 433. In this rule, DOE revises the latest baseline Federal
building standard for 10 CFR part 433 from ASHRAE Standard 90.1-2013 to
ASHRAE Standard 90.1-2019. DOE notes that although ASHRAE published an
update to ASHRAE Standard 90.1 in 2016, this rule updates 10 CFR part
433 to ASHRAE Standard 90.1-2019 directly, without requiring agencies
to comply with ASHRAE Standard 90.1-2016. DOE notes however that
because development of ASHRAE Standard 90.1 is incremental from version
to version, ASHRAE Standard 90.1-2019 does include all content in
ASHRAE Standard 90.1-2016 that was not specifically removed or modified
during the development of ASHRAE Standard 90.1-2019.
B. ASHRAE Standard 90.1
Standard 90.1 is recognized by the U.S. Congress as the national
model energy code for commercial buildings under the ECPA. Standard
90.1 is developed under ANSI-approved consensus procedures and is under
continuous maintenance by a Standing Standard Project Committee
(commonly referenced as SSPC 90.1). Updates to
[[Page 20269]]
Standard 90.1 are published every three years in order for the Standard
to be included in model building energy codes.
Standard 90.1 includes several paths for compliance in order to
provide flexibility to users of the Standard. The prescriptive path,
which is widely considered the most traditional, establishes criteria
for energy-related characteristics of individual building components
such as minimum insulation levels, maximum lighting power, and controls
for lighting and heating, ventilation, air conditioning, and
refrigeration (HVAC&R) systems. Some of those requirements are
considered ``mandatory,'' meaning that they must be met even when one
of the other optional paths are utilized (e.g., performance path).
In addition to the prescriptive path, Standard 90.1 includes two
optional whole building performance paths. The first, known as the
Energy Cost Budget (ECB) method, provides flexibility in allowing a
designer to ``trade-off'' compliance among various requirements of
Standard 90.1. This effectively allows a designer to not meet a given
prescriptive requirement if the impact on energy cost is offset by
exceeding other prescriptive requirements, as demonstrated through
established energy modeling protocols. A building is deemed in
compliance when the annual energy cost of the proposed design is no
greater than the annual energy cost of the reference building design
(baseline). Additionally, Standard 90.1 includes a second performance
approach, the Performance Rating Method in Appendix G of the Standard.
Traditionally, Appendix G has been used to rate the performance of
buildings that exceed the requirements of Standard 90.1 for ``beyond
code'' programs, including the Leadership in Energy and Environmental
Design (LEED) Rating System, Green Globes, ASHRAE Standard 189.1, the
International Green Construction Code (IgCC), the National Green
Building Standard (NGBS), and other above-code programs.
C. Regulatory Requirements of 10 CFR Part 433
The energy efficiency standards for the design and construction of
new Federal commercial and multi-family high rise buildings required by
section 305 of ECPA were established by DOE under 10 CFR part 433.\4\
As required by section 305 of ECPA, the standards in 10 CFR part 433
require Federal buildings be designed to achieve energy consumption
levels that are at least 30 percent below the levels set by the most
recently adopted version of ASHRAE Standard 90.1. When it is not LCC
effective to design new Federal buildings to exceed ASHRAE Standard
90.1 performance levels by 30 percent, new Federal buildings must be
designed to exceed the ASHRAE Standard 90.1 performance levels up to
the percentage that is LCC effective. (10 CFR 433.100(c)). Furthermore,
new Federal buildings must, at minimum, be designed to achieve the
baseline standards established in ASHRAE Standard 90.1. (10 CFR
433.100(a)(1)-(4), (c)).
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\4\ For the purposes of discussion in this document, all
references to ``Federal buildings'' subject to 10 CFR part 433 will
include commercial and multi-family high-rise residential unless
otherwise noted.
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To determine if achieving energy consumption at least 30 percent
lower than the levels of ASHRAE Standard 90.1 is LCC effective, Federal
agencies must use the life-cycle-cost-effectiveness procedures set out
in subpart A of 10 CFR part 436. (10 CFR 433.8) A Federal agency may
choose to use one of four methods to determine LCC effectiveness: Lower
LCC (10 CFR 436.19), positive net savings (10 CFR 436.20), savings-to-
investment ratio estimated to be greater than one (10 CFR 436.21), and
an adjusted internal rate of return estimated to be greater than the
discount rate as listed in OMB Circular Number A-94 ``Guidelines and
Discount Rates for Benefit-Cost Analysis of Federal Programs'' (10 CFR
436.22).
To determine if a proposed building's energy consumption levels are
at least 30 percent better than ASHRAE Standard 90.1, Federal agencies
must use the Performance Rating Method found in Appendix G of ASHRAE
Standard 90.1, subject to the DOE-specific formula found in 10 CFR
433.101. See 10 CFR 433.101(a)(1)-(4). This requires the use of a whole
building simulation tool and model for every new Federal building
design. Similarly, if it is LCC effective for a proposed building's
energy consumption levels to be at a percentage better than ASHRAE
Standard 90.1, but less than 30 percent, Federal agencies must use the
Performance Rating Method in Appendix G of ASHRAE Standard 90.1 to
determine this percentage. However, Federal agencies may use the
prescriptive or ECB methods in lieu of the Performance Rating Method
when determining whether a proposed building's energy consumption
levels comply with, or meet, the energy consumption levels of ASHRAE
Standard 90.1.
Currently, for the purposes of calculating the 30 percent savings
requirements in 10 CFR 433.100, Federal agencies must include energy
consumption levels associated with the building envelope and energy
consuming systems normally specified as part of the building design by
ASHRAE Standard 90.1, such as space heating, space cooling,
ventilation, service water heating (SWH), and lighting, but must not
include receptacle and process loads not within the scope of ASHRAE
Standard 90.1, such as specialized medical or research equipment and
equipment used in manufacturing processes.\5\ (10 CFR 433.101(b))
However, due to a change made by ASHRAE in Standard 90.1-2016, and
retained in ASHRAE Standard 90.1-2019, unregulated process and
receptacle loads must be accounted for in the whole building analysis
to determine whether a Federal building design complies with, or meets,
ASHRAE Standard 90.1-2019, and in the whole building simulation used to
establish the baseline for applying the Appendix G Performance Rating
Method. See section III.B for a more detailed discussion.
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\5\ ``Process load'' means the load on a building resulting from
energy consumed in support of a manufacturing, industrial, or
commercial process. Process loads do not include energy consumed
maintaining comfort and amenities for the occupants of the building
(including space conditioning for human comfort). ``Receptacle
load,'' also known as ``plug load,'' means the load on a building
resulting from energy consumed by any equipment plugged into
electrical outlets. (10 CFR 433.2)
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D. Synopsis of Changes to ASHRAE Standard 90.1 Between ASHRAE Standard
90.1-2013 and ASHRAE Standard 90.1-2019
Under its building energy codes program, DOE evaluated ASHRAE
Standard 90.1-2016 and 90.1-2019 and determined that each version would
improve energy efficiency in commercial buildings subject to the code
relative to the previous version of the Standard. (See 83 FR 8463 and
86 FR 40543) The summaries of the changes between each version of the
Standard in the following sections are taken directly from DOE's
determinations and supporting analyses for ASHRAE Standard 90.1-2016
and ASHRAE Standard 90.1-2019.\6\ Section
[[Page 20270]]
II.D.1 describes the changes between ASHRAE Standard 90.1-2013 and
ASHRAE Standard 90.1-2016, and section II.D.2 describes the changes
between ASHRAE Standard 90.1-2016 and ASHRAE Standard 90.1-2019.
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\6\ See determinations for the 2016 and 2019 ASHRAE 90.1
Standards at www.regulations.gov/document/EERE-2017-BT-DET-0046-0008
and www.regulations.gov/document/EERE-2020-BT-DET-0017-0010. See
analysis of energy savings for the 2016 and 2019 ASHRAE 90.1
Standards at www.energycodes.gov/sites/default/files/2021-07/02202018_Standard_90.1-2016_Determination_TSD.pdf and
www.energycodes.gov/sites/default/files/2021-07/Standard_90.1-2019_Final_Determination_TSD.pdf.
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1. Changes in ASHRAE From Standard 90.1-2013 to Standard 90.1-2016
ASHRAE publishes changes to Standard 90.1 as individual addenda to
the preceding Standard, and then bundles them together to form the next
published edition. In creating the 2016 edition, ASHRAE published 121
addenda in total (listed in Appendix H of Standard 90.1-2016). DOE
characterized the individual addenda into four categories:
(1) Addenda that are clarifications, administrative, or update
references to other documents;
(2) Addenda that modify prescriptive and mandatory design and
construction requirements for the envelope, HVAC, SWH, power,
lighting, and other equipment sections of the standard;
(3) Addenda that modify the performance path options for
compliance (the energy cost budget, building envelope trade-off
option, and performance rating method sections of Standard 90.1); or
(4) Addenda that modify normative references.
DOE analyzed these addenda in preliminary and final energy savings
analyses in making its determination that changes in ASHRAE Standard
90.1-2016 would lead to improved overall energy efficiency in buildings
subject to the code compared to the 2013 edition of the Standard. (See
83 FR 8463) A more detailed discussion of the individual addenda may be
found in DOE's energy savings analysis technical support document (TSD)
for the final determination, which may be accessed at
www.energycodes.gov/determinations.
For the purposes of this final rule, the most significant changes
in ASHRAE Standard 90.1-2016 and beyond are to the Appendix G
Performance Rating Method. The changes include: moving to a fixed
baseline for calculating baseline building costs in the Performance
Rating Method, adjustments to the associated equation for demonstrating
compliance with the Performance Rating Method, and the application of a
second equation that includes selecting building type and climate zone
from a new table included in the revision. These changes are discussed
in more detail in this section. However, as before, the calculations in
the Appendix G Performance Rating Method are expressed in terms of
energy costs.
Another significant change is that the new Appendix G Performance
Rating Method may now be used to demonstrate compliance with ASHRAE
Standard 90.1. In previous versions of the Standard, the Appendix G
Performance Rating Method could only be used to make ``beyond code''
determinations of a proposed building's energy efficiency improvement
beyond ASHRAE Standard 90.1. To demonstrate compliance, users were
required to use either the prescriptive path or the ECB model to
determine compliance. With the changes to the Appendix G Performance
Rating Method formula, users may now use the Performance Rating Method
to determine compliance with ASHRAE Standard 90.1.
a. Fixed Baseline
In Standard 90.1-2016, Appendix G was redesigned to have a
consistent baseline across future versions for purposes of calculating
baseline building energy costs, as opposed to having a baseline based
on the prescriptive requirements of each new Standard. The new baseline
for the Appendix G Performance Rating Method is now fixed at a level of
performance approximately equal to the requirements in ASHRAE Standard
90.1-2004. That baseline is then used in a new formula found in Section
4.2.1.1 of ASHRAE Standard 90.1-2016 to set a compliance baseline for
buildings designed under ASHRAE Standard 90.1-2016. The formula uses
factors for different building types and climate zones, the building
performance factors (BPFs) which are established in ASHRAE Standard
90.1-2016, and will be updated in each subsequent version. The BPFs are
based upon the percent improvement in energy cost savings that is
required by each successive ASHRAE Standard 90.1 compared to the fixed
baseline. The resulting target represents the increase in energy cost
savings beyond the fixed baseline that is required in each successive
ASHRAE Standard 90.1 for each building type and climate zone.
The intent of these changes is to encourage the development of
software tools that implement the Appendix G Performance Rating Method
by providing a consistent baseline for Standard 90.1-2016 and future
versions. This would allow software developers to more easily update
programs to account for subsequent versions of the Standard by simply
updating the BPFs used in the subsequent Standard. These efforts could
have significant value to Federal agencies because the software tools
envisioned would perform both the baseline and proposed building
performance calculations and keep track of the relationships between
the baseline building performance and proposed building performance, as
noted in Table G3.1 of the Appendix G Performance Rating Method in
ASHRAE Standard 90.1-2016. While these tools do not currently exist, it
is expected that adhering to a consistent baseline will encourage
software development.
b. Revisions and Additions to the Formula for Demonstrating Compliance
With the Appendix G Performance Rating Method
To accommodate the new baseline, and because ASHRAE Standard 90.1
prescriptive requirements are now significantly more stringent than
that baseline, ASHRAE revised the formula for demonstrating compliance
with, and improvement beyond, the Appendix G Performance Rating Method
in Standard 90.1-2016. The new formula requires the user to determine a
metric first established in ASHRAE Standard 90.1-2016, the Performance
Cost Index (PCI), which is calculated as follows:
Performance Cost Index = proposed building performance/baseline
building performance
To determine compliance with, or improvement beyond, ASHRAE
Standard 90.1, the user must then compare the PCI with a PCI Target
(PCIt). The PCIt is the energy cost value that a
proposed building must meet in order to comply with ASHRAE Standard
90.1 and, as noted above, it represents the increase in energy cost
savings beyond the fixed baseline that is required in new versions of
ASHRAE Standard 90.1 for that specific building type and climate zone.
Accordingly, where PCI <= PCIt the proposed building design
complies with ASHRAE Standard 90.1.
To calculate PCIt, users must use the formula in Section
4.2.1.1, first established in ASHRAE Standard 90.1-2016 and repeated in
Standard 90.1-2019, which is quoted below:
``When using Appendix G, the Performance Cost Index (PCI) shall be
less than or equal to the Performance Cost Index Target
(PCIt) when calculated in accordance with the following:
PCIt = [BBUEC + (BPF x BBREC)]/BBP
Where:
PCI = Performance Cost Index calculated in accordance with section
G1.2.
BBUEC = Baseline Building Unregulated Energy Cost, the portion of
the annual energy cost of a baseline building design that is due to
unregulated energy use.
BBREC = Baseline Building Regulated Energy Cost, the portion of the
annual energy cost of a baseline building design that is due to
regulated energy use.
[[Page 20271]]
BPF = Building Performance Factor from Table 4.2.1.1. For building
area types not listed in Table 4.2.1.1, use ``all others.'' Where a
building has multiple building area types, the required BPF shall be
equal to the area-weighted average of the building area types.
BBP = Baseline Building Performance.''
This formula is used in conjunction with Table 4.2.1.1, which
provides BPFs for 9 building area types: Multifamily, Healthcare/
Hospital, Hotel/Motel, Office, Restaurant, Retail, School, Warehouse,
and All Others. BPFs are also provided for 17 climate zones: 0A and 1A,
0B and 1B, 2A, 2B, 3A, 3B, 3C, 4A, 4B, 4C, 5A, 5B, 5C, 6A, 6B, 7, and
8. Table 4.2.1.1 may be viewed in the online read-only version of
ASHRAE Standard 90.1-2019.\7\
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\7\ Table 4.2.1.1 of Standard 90.1-2019 is copyrighted by ASHRAE
and is not included in this rule. However, a read-only copy of ANSI/
ASHRAE/IES Standard 90.1-2019 may be found on the ASHRAE website at
www.ashrae.org/technical-resources/standards-and-guidelines by
scrolling down to ``Preview ASHRAE Standards and Guidelines'' and
selecting ``Standard 90.1-2019 (I-P).'' Table 4.2.1.1 is found in
Section 4 on page 47.
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Definitions of Regulated and Unregulated Energy Use
As noted previously, there are two key terms used in the formula in
Section 4.2.1.1 of ASHRAE Standard 90.1: ``regulated energy use'' and
``unregulated energy use.'' ASHRAE defines ``regulated energy use'' as
``energy used by building systems and components with requirements
prescribed in sections 5 through 10. This includes energy used by HVAC,
lighting, SWH, motors, transformers, vertical transportation,
refrigeration equipment, computer-room cooling equipment, and other
building systems, components, and processes with requirements in
sections 5 through 10.'' ASHRAE defines ``unregulated energy use'' as
``energy used by building systems and components that is not regulated
energy use (see regulated energy use).'' For purposes of clarity, DOE
notes that the definition of ``regulated energy use'' should include
SWH used for pools, both interior lighting and exterior lighting, and
service water pressure booster systems.
DOE also notes that in ASHRAE Standard 90.1-2016, ASHRAE considered
plug loads such as computers, printers, copiers, and other electronic
devices to be ``unregulated energy use'' for purposes of ASHRAE
Standard 90.1. While automatic receptacle control \8\ for plug loads is
required by Section 8.4.2 of ASHRAE Standard 90.1, the actual plug
loads themselves are not regulated. DOE also notes that cooking
equipment other than refrigeration equipment should be considered
``unregulated energy use'' as well. DOE notes that both plug loads and
cooking equipment are covered by Federal energy efficient product
procurement requirements in 10 CFR part 436.
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\8\ ASHRAE Standard 90.1 uses the term ``automatic receptacle
control'' without a specific definition, indicating that the common
usage of this term should be used. However, ASHRAE Standard 90.1
does use the term ``automatic control device'' in conjunction with
the term ``automatic receptacle control.'' The definition of
``automatic control device'' in ASHRAE Standard 90.1 is ``a device
capable of automatically turning loads off and on without manual
intervention.'' This definition implies that an ``automatic
receptacle control'' is a device capable of automatically turning
loads plugged into a receptacle off and on without manual
intervention.
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2. Changes in ASHRAE From Standard 90.1-2016 to Standard 90.1-2019
In creating Standard 90.1-2019, ASHRAE published 88 addenda in
total, of which:
29 are expected to decrease energy use (i.e., increased
energy savings);
none are expected to increase energy use (i.e., decreased
energy savings), and;
59 are expected to have no direct impact on energy savings
(such as administrative or clarifications or changes to alternative
compliance paths).
DOE analyzed these addenda in preliminary and final energy savings
analyses in making its determination that changes in ASHRAE Standard
90.1-2019 will lead to improved overall energy efficiency in buildings
subject to the code compared to the 2016 edition of the Standard. (See
86 FR 20674 (April 21, 2021) and 86 FR 40543 (July 28, 2021)) A more
detailed discussion of the individual addenda may be found in DOE's
energy savings analysis TSD for the final determination, which may be
accessed at www.energycodes.gov/determinations.
The 29 changes considered that are expected to decrease energy use
are:
(1) Modified exceptions to exhaust air energy recovery
requirements.
(2) Changes the term ``ventilation air'' to ``outdoor air'' in
multiple locations. Adds an exception to allow systems intended to
operate continuously not to install motorized outdoor air dampers.
Changes return air dampers to require low leakage ratings.
(3) Provides a definition of ``occupied-standby mode'' and adds
new ventilation air requirements for zones served in occupied-
standby mode.
(4) Clarifies that exhaust air energy recovery ventilators
(ERVs) should be sized to meet both heating and cooling design
conditions unless one mode is specifically excluded by existing
exceptions.
(5) Revises the exception to demand control ventilation (DCV)
requirements to clarify that the exception only applies to systems
with ERV required to meet section 6.5.6.1.
(6) Revises the definition of ``networked guest room control
system'' and aligns HVAC and lighting time-out periods for guest
rooms.
(7) Expands the exterior lighting power density (LPD)
application table to cover additional exterior spaces that are not
in the exterior LPD table.
(8) Adds heat recovery for the space conditioning requirement
targeted specifically at in-patient hospitals.
(9) Restructures commissioning and functional testing
requirements in all sections of Standard 90.1 to require
verification or testing for smaller and simpler buildings and
commissioning for larger and more complex buildings.
(10) Adds indoor pool dehumidifier energy recovery requirement.
(11) Implements Federal clean water pump requirements.
(12) Replaces Fan Energy Grade metric with Fan Energy Index
metric.
(13) Revises supply air temperature reset controls.
(14) Eliminates the requirement that zones with direct digital
control (DDC) have air flow rates that are no more than 20 percent
of the zone design peak flow rate.
(15) Revises the prescriptive fenestration U-factor and solar
heat gain coefficient (SHGC) requirements and makes them material
neutral.
(16) Provides separate requirements for non-transient dwelling
unit exhaust air energy recovery.
(17) Changes the interior LPD requirements for many space types.
(18) Adds a new chiller table for heat pump and heat recovery
chillers.
(19) Revises the computer room air conditioner (CRAC)
requirements to clarify these are for floor mounted units and adds a
new table for ceiling mounted units.
(20) Adds a definition of Standby Power Mode Consumption.
Increases the furnace efficiency requirements.
(21) Adds a new Table F-5 to specify DOE-covered residential
water boiler efficiency requirements and notes that requirements in
Table 6.8.1-6 apply only to products used outside the United States.
Adds standby mode and improved efficiency as of January 15, 2021.
(22) Adds dry cooler efficiency requirements and slightly
increases efficiency requirements for evaporative condensers.
(23) Combines the commercial refrigerator and freezer table with
the refrigerated casework table into a single table. Increases
efficiency requirements.
(24) Revises LPDs using the Building Area Method.
(25) Makes a similar change to the variable air volume (VAV) box
minimums as Addendum au to 90.1-2016, but in exception 1 to section
6.5.2.1 where the same 20 percent requirement still existed.
(26) Cleans up the outdated language regarding walk-in cooler
and walk-in freezer
[[Page 20272]]
requirements and makes the requirements consistent with current
Federal regulations.
(27) Adds new normative references and updates existing ones
with new effective dates, including several addenda to ASHRAE
Standard 62.1-2016.
(28) Updates the lighting control requirements for parking
garages in section 9.4.1.2.
(29) Changes the daylight responsive requirements from
continuous dimming or stepped control to continuous dimming required
for all spaces and adds a definition of continuous dimming.
The remaining 59 changes were considered administrative in nature
or were determined to not be energy related. These changes are
discussed in more detail in Appendix A of Preliminary Energy Savings
Analysis: ANSI/ASHRAE/IES Standard 90.1-2019.\9\ One change that is
considered administrative in DOE's determination but is significant to
this rulemaking is that ASHRAE updated the BPFs in Table 4.2.1.1 that
are used in the Performance Rating Method in Standard 90.1-2019. This
change reflects the increased performance of buildings designed to
Standard 90.1-2019. The changes made to the Performance Rating Method
that are discussed previously in section II.D.1 were carried over from
ASHRAE Standard 90.1-2016 and included in ASHRAE Standard 90.1-2019.
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\9\ www.energycodes.gov/sites/default/files/2021-07/20210407_Standard_90.1-2019_Determination_TSD.pdf.
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III. Discussion of the Final Rule
DOE is issuing this action as a final rule. As indicated
previously, DOE must determine whether the energy efficiency standards
for new Federal buildings should be updated to reflect revisions to
ASHRAE Standard 90.1 based on the cost-effectiveness of the revisions.
(42 U.S.C. 6834(a)(3)(B)). In this final rule, DOE determines that the
energy efficiency standards for new Federal buildings should be updated
to reflect the 2019 revisions to ASHRAE Standard 90.1 based on the
cost-effectiveness of the revisions. This final rule amends 10 CFR part
433 to update the referenced baseline Federal energy efficiency
performance standards and provides a formula for Federal agencies to
use when implementing the Appendix G Performance Rating Method based on
the changes in ASHRAE Standard 90.1-2016, detailed in section II.D.1,
that were carried over into ASHRAE Standard 90.1-2019. These amendments
are described in sections II.D.1. and II.D.2. of this document.
Additionally, DOE clarifies and reiterates several programmatic
principles for Federal agencies implementing ASHRAE Standard 90.1 based
on frequently asked questions received by DOE.
DOE also notes that there are a number of energy management
requirements for Federal buildings found in statutory provisions,
regulations, Executive Orders, and associated guidance, including, but
not limited to the National Energy Conservation Policy Act, as amended
(42 U.S.C. 8253-8258); the Energy Policy Act (EPAct) of 2005 (42 U.S.C.
15852); 10 CFR parts 433 and 435; and Executive Order 13834 (83 FR
23771 (May 22, 2018)). This final rule supports and does not supplant
other legal requirements governing energy consumption in new Federal
buildings. For example, by designing buildings to meet the ASHRAE
Standard 90.1-2019 baseline, Federal agencies also help achieve the
energy intensity reductions mandated under 42 U.S.C. 8253(a).
A. DOE's Analysis of the Cost-Effectiveness of ASHRAE Standard 90.1 as
Applied to New Federal Buildings
DOE has determined that the energy efficiency standards for new
Federal buildings should be updated to reflect the 2019 revisions to
ASHRAE Standard 90.1 because these revisions are cost-effective for the
Federal government. DOE's determination that the revisions to ASHRAE
Standard 90.1 are cost effective for new Federal buildings is based on
several forms of analysis.
DOE is required by ECPA section 304(b) to determine whether
revisions to ASHRAE Standard 90.1 would improve energy efficiency in
commercial buildings and must publish notice of its determination in
the Federal Register. (42 U.S.C. 6833(b)(2)(A)). Although DOE's review
of ASHRAE Standard 90.1 is required for the activities of DOE's State
building energy codes program, DOE also uses the analysis as part of
its review for purposes of the baseline standard update for new Federal
buildings. Accordingly, DOE first compared ASHRAE Standard 90.1-2016 to
the 2013 version of the standard and found that the revisions in the
2016 version achieved greater energy efficiency. (See 82 FR 34513 (July
25, 2017)). This determination was subject to notice and comment. (See
83 FR 8463 (Feb. 27, 2018)). In that determination, DOE found that the
2016 version of Standard 90.1 would have energy cost, source energy,
and site energy savings of 8.3, 7.9, and 6.8 percent, respectively,
compared to the 2013 version of Standard 90.1. Similarly, DOE compared
ASHRAE Standard 90.1-2019 to the 2016 version of the standard and found
that the revisions in the 2019 version would achieve greater energy
efficiency. (See 86 FR 20674 (April 21, 2021)) This determination was
subject to notice and comment. (See 86 FR 40543; July 28, 2021). In
that determination, DOE found that the 2019 version of Standard 90.1
would have energy cost, source energy, and site energy savings of 4.3,
4.3, and 4.7 percent, respectively, compared to the 2016 version of
Standard 90.1. DOE also conducted an independent, supplemental analysis
of the updated ASHRAE Standard 90.1 as applied to the Federal sector,
and found that the 2019 version of Standard 90.1 would have energy
cost, source energy, and site energy savings of 11.3, 11.3, and 11.2
percent, respectively, compared to the 2013 version of Standard 90.1.
Second, DOE conducted an analysis of the cost-effectiveness of the
updated ASHRAE Standard 90.1 as part of DOE's required activities for
its building energy codes program and found the updated version to be
cost-effective. DOE determines the cost effectiveness of revisions to
ASHRAE Standard 90.1 as part of DOE's participation in the code
development process. Section 307(b) of ECPA requires DOE to participate
in the ASHRAE code development process and to assist in determining the
cost-effectiveness of the voluntary standards. (42 U.S.C. 6836). DOE is
required to periodically review the economic basis of the voluntary
building energy codes and participate in the industry process for
review and modification, including seeking adoption of all
technologically feasible and economically justified energy efficiency
measures. (42 U.S.C. 6836(b)).
Finally, DOE conducted an independent, supplemental analysis of
ASHRAE Standard 90.1-2019 as applied to the Federal sector (baseline
ASHRAE Standard 90.1-2013), and found that the energy efficiency gains
resulted in $161.9 million annual life-cycle-cost net savings overall
for an assumed 19.54 million square feet of annual new Federal
construction, with a cumulative net present value (NPV) of total
benefits of $1.66 billion (at a 7-percent discount rate) and $3.48
billion (at a 3-percent discount rate). This NPV expresses the
estimated total value of future operating cost savings minus the
estimated increased building costs for new Federal construction for
2022-2051 with a 30-year lifetime, along with monetized estimates of
climate and health benefits. As part of the development of this rule,
for the purpose of complying with the requirements of Executive Order
12866, DOE considered the estimated monetary benefits from the reduced
emissions of CO2, CH4, N2O,
NOX, and SO2 that are
[[Page 20273]]
expected to result from this rule. On March 16, 2022, the Fifth Circuit
Court of Appeals (No. 22-30087) granted the federal government's
emergency motion for stay pending appeal of the February 11, 2022,
preliminary injunction issued in Louisiana v. Biden, No. 21-cv-1074-
JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of
the federal government's appeal of that injunction or a further court
order. Among other things, the preliminary injunction enjoined the
defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group on
the Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach prior
to the injunction and present monetized benefits where appropriate and
permissible under law. These results are discussed in greater detail in
section IV of this document.
DOE's assumptions and methodology for the supplemental review cost-
effectiveness of this rule are based on the cost-effectiveness analysis
of ASHRAE Standard 90.1-2016 and ASHRAE Standard 90.1-2019 conducted by
DOE's State building energy codes program. These assumptions and
methodology also provide the basis for the EA for this rulemaking. In
this supplemental review, DOE recognized differences in Federal sector
building types and attempted to address these differences by drawing
functional equivalencies among building types that were analyzed in the
cost-effectiveness analysis described above. DOE also calculated the
weighted average incremental costs for the 14 Federal building types
that most closely matched the prototypes analyzed in DOE's cost-
effectiveness analysis of Standard 90.1-2019. These Federal building
types comprise 79.3 percent of estimated Federal construction. DOE
assumes that all other Federal building types are represented by the
average of the Federal buildings that were mapped to DOE's cost-
effectiveness analysis building types. The results of this supplemental
review are discussed in detail in section IV of this document.
Accordingly, based on these analyses, DOE has determined that the
energy efficiency standards for new Federal buildings should be updated
to reflect the 2019 revisions to ASHRAE Standard 90.1 based on the
cost-effectiveness of the revisions.
B. Federal Agency Implementation of Changes to the Appendix G
Performance Rating Method in ASHRAE Standard 90.1-2016 and ASHRAE
Standard 90.1-2019
As previously discussed, ASHRAE Standard 90.1-2016 was the first
version of Standard 90.1 in which the Appendix G Performance Rating
Method may be used to demonstrate compliance with Standard 90.1. In
previous versions, Appendix G was limited to demonstrating the
percentage improvement above Standard 90.1. Federal agencies can now
use Appendix G for both compliance and demonstrating the percentage
improvement better than ASHRAE Standard 90.1-2019. Federal agencies may
also choose to use one of the other compliance methods (the
prescriptive path or the ECB method) to demonstrate compliance with
Standard 90.1-2019. However, Federal agencies can only use the Appendix
G Performance Rating Method for calculating the 30 percent improvement
beyond ASHRAE Standard 90.1 as required in 10 CFR 433.100 and 433.101.
DOE notes that not all Federal building types are explicitly
covered by the BPFs listed in Table 4.2.1.1 of ASHRAE Standard 90.1-
2019. DOE plans to work with Federal agencies to define the most
appropriate building area type for various types of buildings
constructed in the Federal sector, such as courthouses, barracks, and
industrial type facilities.
To calculate the percent improvement beyond ASHRAE Standard 90.1-
2019, Federal agencies must use the formula in new 10 CFR
433.101(a)(5). The formula is as follows:
Percent improvement beyond code = 100 x ((PCIt--PCI)/PCIt)
Where
PCI = Performance Cost Index, as defined in Appendix G of ASHRAE
Standard 90.1-2019, and
PCIt = Performance Cost Index Target, as calculated in
Section 4.2.1.1 of ASHRAE Standard 90.1-2019
This formula differs from previous formulas that DOE has required
in 10 CFR 433.101 due to the new ASHRAE requirement to calculate
PCIt to determine whether a proposed building design exceeds
the energy costs savings of ASHRAE Standard 90.1-2019.
Importantly, section 4.2.1.1 requires that the Baseline Building
Unregulated Energy Consumption (BBUEC) be included in the calculation
of a building's PCIt. DOE notes that Federal agencies have
always been required to include energy consumption that has generally
been ``unregulated'' by ASHRAE Standard 90.1 (i.e., certain process
loads and receptacle loads) for purposes of determining compliance with
ASHRAE Standard 90.1. Additionally, Federal agencies are required to
include such unregulated energy use to conduct the required whole
building simulation to establish the baseline for applying the Appendix
G Performance Rating Method.
However, Federal agencies are currently required to exclude
unregulated energy use not within the scope of ASHRAE Standard 90.1
when determining whether a design has met the required 30 percent
improvement below ASHRAE Standard 90.1. (10 CFR 433.101(b)) In the
initial promulgation of the energy efficiency standards for Federal
commercial and multi-family high rises, DOE stated that such an
exclusion for process loads was warranted because process loads in
government facilities typically involve specialized equipment for which
improvements in energy efficiency may affect the functionality of the
equipment or where improvements are not available at all. Additionally,
some Federal buildings use most of their energy serving process loads,
and application of the energy savings requirement to these buildings
would likely place an undue burden on the rest of the building if the
30 percent savings is to be achieved. (See 72 FR 72565, 72567-72568
(Dec. 21, 2007)). With respect to receptacle loads, DOE stated that it
is often not possible to identify all receptacle loads when a building
is designed or constructed as the occupants will to some degree
establish what is plugged in, and that as equipment is replaced over
time the initial savings from receptacle loads may diminish. (See 72 FR
72567-72568) Moreover, DOE stated that the energy efficiency of many
receptacle loads was addressed in section 104 of EPAct 2005 (Pub. L.
109-58), which requires Federal agencies to purchase energy efficient
appliances and equipment. (42 U.S.C 8259b).
However, due to ASHRAE's explicit inclusion of unregulated energy
use in the PCIt equation, in this final rule, DOE limits the
types of unregulated loads that may be excluded from the calculation of
the 30 percent improvement beyond ASHRAE Standard 90.1. This final rule
revises 10 CFR 433.101(b) to require Federal agencies to include
unregulated energy use (i.e., process loads and receptacle loads not
within the scope of ASHRAE Standard 90.1) in agencies'
[[Page 20274]]
determination of PCIt when calculating the 30 percent
improvement beyond ASHRAE Standard 90.1, except for energy-intensive
process loads that are (i) driven by mission and operational
requirements, not necessarily buildings, and (ii) not influenced by
conventional building energy conservation measures. Examples would
include training simulators, health-care equipment, facilities which
generate and/or transmit electricity or steam, waterway shipping locks,
and transmitters and other types of electronic installations. This
exception aligns with DOE's exception for certain assumed exclusions of
structures and processes under the Federal energy performance and
reporting requirements of section 543 of the National Energy
Conservation Policy Act (NECPA), as amended by EPAct.\10\ (See 42
U.S.C. 8253(a)) This final rule also removes paragraph (b) from 10 CFR
433.100, as this paragraph is duplicative of the current paragraph (b)
in 10 CFR 433.101, and is not reflective of the changes in this final
rule. Moreover, the content in this paragraph, how to incorporate
process and receptacle loads in the calculation of the 30 percent
improvement, is best placed in 10 CFR 433.101, which prescribes the
equations for the 30 percent improvement calculation.
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\10\ Section 543 of NECPA requires agencies to meet specific
energy reduction targets, report progress towards such targets,
perform periodic energy consumption evaluations, and implement
periodic energy conservation measures where feasible. (42 U.S.C.
8253). Section 543(c)(3) of NECPA requires DOE to issue guidelines
that establish criteria for exclusions to these performance and
reporting requirements. These exclusions are outlined in
``Guidelines Establishing Criteria for Excluding Buildings from the
Energy Performance Requirements of Section 543 of the National
Energy Conservation Policy Act as Amended by the Energy Policy Act
of 2005,'' (Jan. 27, 2006), available at: www.energy.gov/eere/femp/downloads/guidelines-establishing-criteria-excluding-buildings-energy-performance.
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DOE acknowledges that the inclusion of unregulated loads into the
30 percent or more determination is a change from prior practice.
However, the changes in this final rule ensure consistency between
ASHRAE Standard 90.1-2019 and the application of the Standard to
Federal buildings, as required by section 305 of ECPA, while still
providing agencies the flexibility to exclude unique mission-focused,
energy-intensive process loads from the 30 percent improvement
calculation so that the functionality of such loads is not jeopardized
and an undue burden is not placed on the rest of the building if the 30
percent savings is to be achieved. The inclusion of unregulated energy,
particularly receptacle loads, into the 30 percent improvement
calculation may mean that fewer building designs will meet the 30
percent threshold, where such designs would otherwise meet that
threshold if unregulated energy loads were excluded from the
calculation. However, DOE believes that the inclusion of unregulated
energy use into this calculation is more consistent with the text of
section 305 of EPAct 2005, which requires that Federal buildings be
designed to achieve energy savings of 30 percent or more below ASHRAE
Standard 90.1, without reference to or exception for process or
receptacle loads. Moreover, DOE notes that such buildings consume the
same amount of energy, regardless of whether unregulated energy is
included in the 30 percent or more calculation. Additionally, DOE
reiterates that a building design is compliant with 10 CFR 433.100 even
if the design does not meet the 30 percent or more threshold, provided
the design obtains the most energy savings below ASHRAE Standard 90.1
that is cost-effective, in accordance with 10 CFR 433.100(c) (now
section 433.100(b)).
C. Definition of ``New Federal Building''
The definition of ``New Federal building'' in 10 CFR part 433 has
not previously been updated to match what is found in 42 U.S.C.
6832(6). EISA 2007 (Pub. L. 110-140, 121 Stat. 1614 (Dec. 19, 2007))
updated the definition of ``Federal building'' to include privatized
military family housing and leased buildings. Accordingly, in order to
bring 10 CFR part 433 into agreement with 42 U.S.C. 6832(6), DOE is
updating the definition of ``New Federal building'' to mean '' any new
building (including a complete replacement of an existing building from
the foundation up) to be constructed by, or for the use of, any Federal
agency. Such term shall include new buildings (including a complete
replacement of an existing building from the foundation up) built for
the purpose of being leased by a Federal agency, and privatized
military housing.''
D. Programmatic Clarifications for Implementing ASHRAE Standard 90.1
As noted previously, DOE is clarifying and reiterating several
programmatic principles regarding implementation of ASHRAE Standard
90.1-2019 in the preamble of final rule. The clarifications and
reiterations are not changes to the regulatory text. Instead, DOE is
taking this opportunity to provide answers and clarifications for
frequent questions that DOE receives from Federal agencies in order to
reduce confusion over agencies' implementation of ASHRAE Standard 90.1.
1. Whole Building Simulation and Model for Appendix G Performance
Rating Method
Based on frequent questions regarding the issue, DOE reiterates
that the use of the ASHRAE Standard 90.1 Appendix G Performance Rating
Method requires the consideration of the building envelope and the use
of a whole-building simulation tool and simulation model for the chosen
tool of the proposed building design. As noted previously, Federal
agencies must use the Performance Rating Method when determining if
their proposed buildings are 30 percent or better beyond ASHRAE
Standard 90.1. Since all Federal agencies must determine if they can
meet the 30 percent or more threshold, this means that all Federal
agencies must use a whole building simulation tool and a building model
for every new Federal building design. Additionally, where a Federal
agency uses the Performance Rating Method to determine compliance with
ASHRAE Standard 90.1-2019, the agency must use a whole building
simulation tool and whole building model.
2. DOE and Agency Roles When Applying ASHRAE Standard 90.1
DOE has often received questions regarding enforcement of the
energy efficiency standards for Federal commercial and multi-family
high rise buildings, including for situations when agencies may seek
exceptions to particular aspects of ASHRAE Standard 90.1. Specifically,
agencies have asked whether DOE is the ``authority having
jurisdiction'' referenced in ASHRAE Standard 90.1, and whether DOE is
the ``authority having jurisdiction'' for purposes of granting
exceptions to aspects of the Standard for Federal agencies. As with
prior versions of ASHRAE Standard 90.1, Standard 90.1-2019 provides
some flexibility to building designers based upon the type of code
requirement at issue. Standard 90.1 contains ``prescriptive
requirements,'' which may have exceptions to them or may be ``traded
off'' in the Performance Rating Method if designers are unable or
choose not to meet a specific prescriptive requirement. Such an
approach means that another building component would need to be
improved beyond what was required prescriptively by the Standard for
that component, or else the overall score of the building design under
the Performance Rating Method will be lowered. Standard 90.1 also
contains ``mandatory requirements,'' which may not be traded off with
other requirements. However, Standard 90.1
[[Page 20275]]
allows building designs to be excepted from meeting certain mandatory
requirements in certain situations if allowed by the ``authority having
jurisdiction,'' ``building code official,'' and/or ``code official.''
For example, the ``authority having jurisdiction'' or ``code official''
is the person who authorizes the use of alternative materials, methods
of construction, or design (see, e.g., section 4.1.3 of Standard 90.1-
2019), and is also the person charged with determining if there is a
conflict between the Standard and other laws or requirements and how to
address such conflict (see section 4.1.5 of Standard 90.1-2019).
For the purposes of the energy efficiency standards for Federal
buildings, DOE does not have authority to grant exceptions to the
Standard for any Federal agency. The statute does not provide a
specific enforcement authority beyond the statutory requirements, but
section 548(a) of NEPCA (42 U.S.C. 8258(a)) requires Federal agencies
to submit to DOE an annual report that describes activities to meet the
energy management requirements of section 543 of NECPA (42 U.S.C.
8253). This submittal includes a list of all new Federal buildings
owned, operated, or controlled by the Federal agency, for which designs
were started since the beginning of FY 2007 (begun since October 1,
2006), and a statement specifying whether the Federal buildings are
expected to meet or exceed the Federal building efficiency standards in
10 CFR part 433, as applicable. (See www.energy.gov/eere/femp/downloads/annual-energy-management-data-report). The DOE Annual Energy
Management Data Report Reporting workbook and associated guidance can
be found on the DOE Federal Energy Management Program (FEMP)
website.\11\ Federal agencies themselves are responsible for
implementing the energy efficiency standards for Federal buildings and
meeting any applicable statutory and regulatory requirements.
Accordingly, where the terms are used in ASHRAE Standard 90.1, Federal
agencies are their own ``authority having jurisdiction,'' ``building
official,'' and/or ``code official,'' and may use their own best
judgment in determining whether to exempt a proposed Federal building
from aspects of the Standard or seek an alternative energy conservation
measure to meet a particular aspect of the Standard where such
exceptions or alternatives are permitted by the Standard. However,
agencies must still comply with all relevant Federal energy efficiency
statutes and regulations, including 10 CFR part 433. DOE notes that, as
a general rule, any prescriptive requirement in ASHRAE Standard 90.1-
2019 can be ``traded off'' in the Performance Rating Method if agencies
are unable or choose not to meet a specific prescriptive requirement.
Such an approach means that another building component would need to be
improved beyond what was required prescriptively by the Standard for
that component, or else the overall score of the building design under
the Performance Rating Method will be lowered. With respect to
mandatory requirements in the Standard, DOE notes that, as the
``authority having jurisdiction,'' ``building official,'' or ``code
official,'' agencies should only be making exceptions to mandatory
requirements where the Standard allows for the ``authority having
jurisdiction,'' ``building official,'' and/or ``code official'' to make
exceptions to such requirements. DOE welcomes Federal agencies'
questions and requests for assistance in implementing the energy
efficiency standards for Federal buildings, and DOE will provide
guidance and assistance upon request.
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\11\ Federal Comprehensive Annual Energy Reporting Requirements
www.energy.gov/eere/femp/federal-facility-consolidated-annual-reporting-requirements.
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IV. Methodology, Analytical Results, and Conclusion
A. Cost-Effectiveness
DOE's assumptions and methodology for the cost-effectiveness of
this rule are based on cost-effectiveness analysis of ASHRAE Standard
90.1-2016 and ASHRAE Standard 90.1-2019 conducted by DOE's State
building energy codes program,\12\ as well as DOE's EA for this
rulemaking.\13\ As described in the EA, DOE identified a rate of new
Federal commercial construction of 19.54 million square feet per year
with a distribution of building types as shown in Table IV.1. The
distribution of building types is based on an extraction of the latest
10 years of new construction data entered into the Federal Real
Property Portfolio Management System (FRPP MS).\14\ Table IV.1 also
shows the prototype buildings incorporated into computer simulations
that are used to estimate energy use in each building type. DOE derived
these prototype buildings from 16 building types in 17 climate zones
\15\ using its Commercial Prototype Building models.\16\ Of the 16
prototype buildings, DOE developed costs for 6 prototype buildings to
determine the cost effectiveness of ASHRAE Standard 90.1-2016 and
ASHRAE Standard 90.1-2019. DOE then extracted the cost-effectiveness
information for those prototype buildings and weighted those values as
appropriate to obtain an average cost effectiveness value for building
types found in the Federal commercial sector.
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\12\ See DOE's analysis of the cost savings of the 2016 and 2019
ASHRAE 90.1 Standards at www.energycodes.gov/sites/default/files/2020-07/90.1-2016_National_Cost-Effectiveness.pdf and
www.energycodes.gov/sites/default/files/2021-07/90.1-2019_National_Cost-Effectiveness.pdf, respectively.
\13\ The Environmental Assessment (EA) (DOE/EA-2165) is
entitled, ``Environmental Assessment for Final Rule, 10 CFR part
433, `Energy Efficiency Standards for New Federal Commercial and
Multi-Family High-Rise Residential Buildings' Baseline Standards
Update''. The EA may be found in the docket for this rulemaking and
at www.energy.gov/nepa/doeea-2165-energy-efficiency-standards-new-federal-commercial-and-multi-family-high-rise.
\14\ See www.realpropertyprofile.gov/FRPPMS/FRPP_Login.
\15\ Briggs, R.S., R.G. Lucas, and Z.T. Taylor. 2003. ``Climate
classification for building energy codes and standards: Part 1--
Development Process.'' ASHRAE Transactions 109(1): 109:121. American
Society of Heating, Refrigerating and Air-Conditioning Engineers.
Atlanta, Georgia.
\16\ DOE's prototype buildings are described at
www.energycodes.gov/prototype-building-models.
Table IV.1--New Federal Commercial and High-Rise Multi-Family Construction Volume by Building Type
----------------------------------------------------------------------------------------------------------------
Fraction of
Federal
construction Assumed BECP prototypes Assumed BECP prototypes
Building type volume (by for energy savings for cost effectiveness
floor area)
(%)
----------------------------------------------------------------------------------------------------------------
Office.................................. 20.74 Small Office, Medium Small Office, Large
Office, Large Office. Office.
Dormitories and Barracks................ 14.85 Small Hotel, Mid-rise Small Hotel, Mid-rise
Apartment, High-rise Apartment.
Apartment.
[[Page 20276]]
School.................................. 14.33 Secondary School.......... Primary School.
Service................................. 13.31 Stand-alone Retail, Non- Stand-alone Retail.
refrigerated Warehouse.
Other Institutional Uses................ 5.90 None *.................... None.
Hospital................................ 5.57 Hospital.................. Small Office, Large
Office.
Warehouses.............................. 5.37 Non-Refrigerated Warehouse None.
Laboratories............................ 4.37 Medium Office, Hospital... Small Office, Large
Office.
All Other............................... 3.45 None...................... None.
Outpatient Healthcare Facility.......... 3.35 Outpatient Healthcare..... Small Office.
Industrial.............................. 2.36 None...................... None.
Child Care Center....................... 1.18 Primary School............ Primary School.
Communications Systems.................. 1.11 None...................... None.
Prisons and Detention Centers........... 1.01 None...................... None.
Family Housing.......................... 0.68 Mid-rise Apartment........ Mid-rise Apartment.
Navigation and Traffic Aids............. 0.53 None...................... None.
Land Port of Entry...................... 0.53 Non-refrigerated Warehouse None.
Border/Inspection Station............... 0.49 Small Office, Non- Small Office.
refrigerated Warehouse.
Facility Security....................... 0.31 Small Office.............. Small Office.
Data Centers............................ 0.23 None...................... None.
Museum.................................. 0.19 None...................... None.
Comfort Station/Restrooms............... 0.07 Non-refrigerated Warehouse None.
Public Facing Facility.................. 0.05 Stand-alone Retail........ Stand-alone Retail.
Aviation Security Related............... 0.01 Small Office.............. Small Office.
Post Office............................. 0.01 Stand-alone Retail........ Stand-alone Retail.
----------------------------------------------------------------------------------------------------------------
* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building
types, with other institutional uses, warehouses, and all other being the largest Federal building types with
no reliable mapping. As described in this section, DOE considered energy savings and costs for these unmapped
Federal building types to be equivalent to the weighted energy savings and cost for the mapped Federal
building types.
DOE has determined incremental construction first cost information
for the building types and climate zones analyzed for ASHRAE Standard
90.1-2016 versus ASHRAE Standard 90.1-2013 (see Table IV.2),\17\ ASHRAE
Standard 90.1-2019 versus ASHRAE Standard 90.1-2016 (see Table IV.3),
and for ASHRAE Standard 90.1-2019 versus ASHRAE Standard 90.1-2013 (see
Table IV.4).
---------------------------------------------------------------------------
\17\ Note that the values in Table VI.2 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for Standard 90.1-2016, which were in 2018$. This
adjustment was made using the GDP deflator value to correct for
inflation between 2018 and 2020. Organization for Economic Co-
operation and Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank of St. Louis;
fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17,
2021. These values have also been adjusted to reflect the same
underlying economic assumptions as the 2019 version, and sales tax
has also been removed.
Table IV.2--Incremental Construction First Cost (2020$) for ASHRAE Standard 90.1-2016 vs. ASHRAE Standard 90.1-2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. $673 $584 $515 $1,666 $641
$/ft2....................... 0.12 0.11 0.09 0.30 0.12
Large Office.............................. First Cost.................. 261,781 268,194 196,408 354,808 223,553
$/ft2....................... 0.52 0.54 0.39 0.71 0.45
Stand-alone Retail........................ First Cost.................. 19,608 20,240 19,740 21,563 19,363
$/ft2....................... 0.79 0.82 0.80 0.87 0.78
Primary School............................ First Cost.................. (126,946) (121,994) (116,139) (94,722) (122,894)
$/ft2....................... (1.72) (1.65) (1.57) (1.28) (1.66)
Small Hotel............................... First Cost.................. (104,866) (104,624) (104,396) (101,194) (103,044)
$/ft2....................... (2.43) (2.42) (2.42) (2.34) (2.38)
Mid-rise Apartment........................ First Cost.................. (18,343) (17,490) (18,113) (12,445) (25,126)
$/ft2....................... (0.54) (0.52) (0.54) (0.37) (0.74)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this
particular transition from ASHRAE Standard 90.1-2013 to ASHRAE Standard 90.1-2016, the cost reduction was mainly because of smaller and less expensive
HVAC equipment since the building HVAC load had decreased. This cost reduction is part of the first cost calculation. Note that in addition to reduced
equipment costs, there is reduced ductwork or piping costs as well.
[[Page 20277]]
Table IV.3--Incremental Construction First Cost (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard 90.1-2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. ($9,527) ($9,787) ($9,890) ($9,521) ($9,563)
$/ft2....................... (1.73) (1.78) (1.80) (1.73) (1.74)
Large Office.............................. First Cost.................. (989,010) (976,327) (930,667) (1,037,775) (997,955)
$/ft2....................... (1.98) (1.96) (1.87) (2.08) (2.00)
Stand-alone Retail........................ First Cost.................. (33,532) (33,999) (34,505) (34,348) (34,957)
$/ft2....................... (1.36) (1.38) (1.40) (1.39) (1.42)
Primary School............................ First Cost.................. (156,050) (141,073) (153,621) (149,787) (151,492)
$/ft2....................... (2.11) (1.91) (2.08) (2.03) (2.05)
Small Hotel............................... First Cost.................. 26,805 26,218 26,335 26,078 25,616
$/ft2....................... 0.62 0.61 0.61 0.60 0.59
Mid-rise Apartment........................ First Cost.................. (12,251) (12,645) (13,894) (8,127) (7,839)
$/ft2....................... (0.36) (0.37) (0.41) (0.24) (0.23)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this
particular transition from ASHRAE Standard 90.1-2016 to ASHRAE Standard 90.1-2019, the cost reduction was mainly because of smaller and less expensive
HVAC equipment since the building HVAC load had decreased. This cost reduction is part of the first cost calculation.
Table IV.4 combines the incremental first costs associated with the
2016 and 2019 versions of ASHRAE Standard 90.1. The 2016 analysis was
adjusted to use the same underlying economic assumptions as the 2019
version, including fuel prices, fuel price escalations, and labor and
material costs. Additionally, the underlying calculations for both the
2016 and 2019 versions were adjusted to remove sales tax, as Federal
building construction may be exempt from State sales tax, depending on
the State.
Table IV.4--Incremental Construction First Cost (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard 90.1-2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. ($8,854) ($9,204) ($9,375) ($7,855) ($8,922)
$/ft2....................... (1.61) (1.67) (1.70) (1.43) (1.62)
Large Office.............................. First Cost.................. (727,229) (708,133) (734,259) (682,967) (774,402)
$/ft2....................... (1.46) (1.42) (1.47) (1.37) (1.55)
Stand-alone Retail........................ First Cost.................. (13,924) (13,759) (14,765) (12,785) (15,593)
$/ft2....................... (0.56) (0.56) (0.60) (0.52) (0.63)
Primary School............................ First Cost.................. (282,996) (263,067) (269,760) (244,509) (274,386)
$/ft2....................... (3.83) (3.56) (3.65) (3.31) (3.71)
Small Hotel............................... First Cost.................. (78,060) (78,406) (78,061) (75,117) (77,428)
$/ft2....................... (1.81) (1.81) (1.81) (1.74) (1.79)
Mid-rise Apartment........................ First Cost.................. (30,594) (30,136) (32,007) (20,571) (32,965)
$/ft2....................... (0.91) (0.89) (0.95) (0.61) (0.98)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this
particular transition from ASHRAE Standard 90.1-2013 to ASHRAE Standard 90.1-2019, the cost reduction was mainly because of smaller and less expensive
HVAC equipment since the building load had decreased. This cost reduction is part of the first cost calculation. Note that in addition to reduced
equipment costs, there may be reduced ductwork or piping costs as well.
DOE used data from Table IV.1 and Table IV.4 to calculate
preliminary values for overall incremental first cost of construction
for Federal commercial and high-rise, multi-family residential
buildings. DOE calculated the incremental first cost of the Federal
building types based on the DOE cost prototypes shown in the far-right
column of Table IV.1 of this document. DOE then calculated the weighted
average incremental cost for mapped Federal building types based on
their corresponding BECP prototypes, which represent an estimated 79.3
percent of new Federal construction. This weighted incremental cost was
assigned to un-mapped Federal building types, and a total weighted
incremental cost was calculated by multiplying the incremental cost for
each Federal building type by the fraction of Federal construction
shown in Table IV.1 of this document.
The national incremental first cost for building types was
developed by multiplying the average (across climate zones) incremental
first cost of the prototypes (determined from the DOE State building
energy codes program ASHRAE Standard 90.1 cost-effectiveness analysis)
by the fraction of the Federal sector construction volume shown in
Table IV.1, and then multiplying that by the total estimate of Federal
new construction floorspace.\18\ DOE estimates that total first cost
outlays for new Federal buildings will be less under ASHRAE Standard
90.1-2019 than ASHRAE Standard 90.1-2013, primarily due to lower HVAC
equipment costs for some building types (See Table IV.2). The resulting
total incremental first cost estimate is a savings of $32.67 million
per year. The average first cost decrease is $1.67 per square foot.
---------------------------------------------------------------------------
\18\ For the Federal office building, the small and large office
prototype first costs were averaged. For the Federal education
building, the primary school prototype first cost was used. For the
Federal dormitories/barracks building type, the small hotel and mid-
rise apartment prototype first costs were averaged.
---------------------------------------------------------------------------
DOE also analyzed the relative impact of the final rule on the
first cost of new constructed Federal buildings as a percentage of the
overall annual cost of newly constructed Federal commercial and high-
rise buildings. In order to estimate the total cost of construction for
new Federal buildings, DOE obtained estimated construction costs for
new Federal commercial and high-rise multifamily buildings were
[[Page 20278]]
obtained from RS Means (2020) \19\ for the six building types analyzed
in DOE's cost-effectiveness report. These new construction costs were
weighted by the percent of Federal floorspace to develop an average
cost of a new Federal building of $198 per square foot, as shown in
Table IV.5. This average construction cost may be multiplied by the
19.54 million square feet of new Federal construction per year used in
this rulemaking to estimate the annual total cost of new Federal
commercial and high-rise multi-family construction of $3.86 billion. As
previously noted, first cost savings associated with this rulemaking
are estimated at $32.67 million per year, indicating a potential cost
reduction in new Federal construction costs of 0.85 percent ($32.67
million divided by $3.86 billion).
---------------------------------------------------------------------------
\19\ RS Means. 2020. RS Means Building Construction Cost Data,
78th Ed. Construction Publishers & Consultants. Norwell, MA.
Table IV.5--First Cost of Typical New Federal Building in $/ft2
----------------------------------------------------------------------------------------------------------------
First cost * Weighted cost
Federal building type Weight (%) ($) ($)
----------------------------------------------------------------------------------------------------------------
Office.......................................................... 20.74 210 43.51
Barracks and Dormitories........................................ 14.85 217 32.18
School.......................................................... 14.33 225 32.25
Service......................................................... 13.31 116 15.44
Hospital........................................................ 5.57 200 11.14
Laboratories.................................................... 4.37 200 8.73
Outpatient Healthcare Facility.................................. 3.35 220 7.38
Child Care Center............................................... 1.18 225 2.67
Family Housing >3 Stories....................................... 0.68 218 1.48
Border/Inspection Station....................................... 0.49 220 1.07
Facility Security............................................... 0.31 220 0.69
Aviation Security Related....................................... 0.01 220 0.02
Public Facing Facility.......................................... 0.05 116 0.06
Post Office..................................................... 0.01 116 0.01
Remaining Federal Stock......................................... 20.75 198 41.00
-----------------------------------------------
Federal Average............................................. 100.00 198 197.62
----------------------------------------------------------------------------------------------------------------
* All building first cost data from RS Means 2020.
For annual average (first year) energy cost savings, DOE used a
similar approach to that used for incremental first cost. That is, DOE
developed the national first year energy cost savings \20\ for building
types by multiplying the average (across climate zones) energy cost
savings (determined from the DOE ASHRAE Standard 90.1 cost-
effectiveness analysis) by the fraction of the Federal sector
construction volume shown in Table IV.1, and then multiplying that by
the total estimate of Federal new construction floorspace.\21\ Table
IV.6 \22\ and Table IV.7 show annual energy cost savings by prototype
buildings for ASHRAE Standard 90.1-2016 compared to ASHRAE Standard
90.1-2013 and for ASHRAE Standard 90.1-2019 compared to ASHRAE Standard
90.1-2016 respectively, and Table IV.8 shows the combined energy cost
savings associated with the 2016 and 2019 versions of ASHRAE Standard
90.1. As was done for the incremental cost analysis, the 2016 energy
cost savings analysis was adjusted to use the same underlying economic
assumptions as the 2019 version, including fuel prices, fuel price
escalations, labor and material costs, and the removal of sales tax.
The resulting total annual energy cost savings for 19.54 million square
feet of annual construction was estimated to be $3.4 million. The
average annual energy savings in year 1 was estimated to be $0.17 per
square foot. Note the annual energy cost savings are for one year of
Federal commercial and high-rise multi-family residential construction
and that those savings would accumulate over the evaluation period.
---------------------------------------------------------------------------
\20\ The energy costs used were the national average energy
costs used by ASHRAE in the development of Standard 90.1-2019. To
quote the cost-effectiveness analysis report ``Energy rates used to
calculate the energy costs from the modeled energy usage were $0.98/
therm for fossil fuel and $0.1063/kWh for electricity. These rates
were used for the 90.1-2019 energy analysis and derived from the EIA
data. These were the values approved by the SSPC 90.1 for cost-
effectiveness for the evaluation of individual addenda during the
development of 90.1-2019.''
\21\ For the Federal office building, the small and large office
prototype LCCs were weighted by estimated fraction of small and
large offices observed in the FRPP MS database over the past 10
years of construction. For the Federal education building, the
primary school prototype LCC was used. For the Federal dorm/barracks
building type, the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
\22\ Note that the values in Table VI.6 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for Standard 90.1-2016, which were in 2018$. This
adjustment was made using the GDP deflator value to correct for
inflation between 2018 and 2020. Organization for Economic Co-
operation and Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank of St. Louis;
fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17,
2021. These values have also been adjusted to reflect the same
underlying economic assumptions as the 2019 version.
Table IV.6--Average First Year Energy Cost Savings (2020$) for ASHRAE Standard 90.1-2016 vs. ASHRAE Standard 90.1-2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. $597 $583 $589 $557 $591
$/ft2....................... 0.11 0.11 0.11 0.10 0.11
Large Office.............................. First Cost.................. 37,492 39,844 19,652 49,019 45,108
$/ft2....................... 0.08 0.08 0.04 0.10 0.09
[[Page 20279]]
Stand-alone Retail........................ First Cost.................. 3,324 3,214 2,895 3,075 2,778
$/ft2....................... 0.13 0.13 0.12 0.12 0.11
Primary School............................ First Cost.................. 15,245 16,130 11,841 15,560 16,377
$/ft2....................... 0.21 0.22 0.16 0.21 0.22
Small Hotel............................... First Cost.................. 6,964 6,594 6,025 7,193 8,019
$/ft2....................... 0.16 0.15 0.14 0.17 0.19
Mid-rise Apartment........................ First Cost.................. 1,715 1,615 1,649 1,461 1,881
$/ft2....................... 0.05 0.05 0.05 0.04 0.06
--------------------------------------------------------------------------------------------------------------------------------------------------------
Table IV.7--Average First Year Energy Cost Savings (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard 90.1-2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. $278 $259 $271 $237 $235
$/ft2....................... 0.05 0.05 0.05 0.04 0.04
Large Office.............................. First Cost.................. 36,020 36,525 29,947 29,898 31,038
$/ft2....................... 0.07 0.07 0.06 0.06 0.06
Stand-alone Retail........................ First Cost.................. 2,674 2,309 2,395 2,035 1,927
$/ft2....................... 0.11 0.09 0.10 0.08 0.08
Primary School............................ First Cost.................. 6,320 6,085 6,945 5,411 5,439
$/ft2....................... 0.09 0.08 0.09 0.07 0.07
Small Hotel............................... First Cost.................. 4,002 3,754 3,833 3,364 3,203
$/ft2....................... 0.09 0.09 0.09 0.08 0.07
Mid-rise Apartment........................ First Cost.................. 1,747 1,581 732 542 522
$/ft2....................... 0.05 0.05 0.02 0.02 0.02
--------------------------------------------------------------------------------------------------------------------------------------------------------
Table IV.8--Average First Year Energy Cost Savings (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard 90.1-2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value -------------------------------------------------------------------------------
2A 3A 3B 4A 5A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office.............................. First Cost.................. $874 $842 $860 $794 $826
$/ft2....................... 0.16 0.15 0.16 0.14 0.15
Large Office.............................. First Cost.................. 73,512 76,369 49,598 78,917 76,146
$/ft2....................... 0.15 0.15 0.10 0.16 0.15
Stand-alone Retail........................ First Cost.................. 5,998 5,522 5,290 5,111 4,705
$/ft2....................... 0.24 0.22 0.21 0.21 0.19
Primary School............................ First Cost.................. 21,565 22,215 18,786 20,971 21,816
$/ft2....................... 0.29 0.30 0.25 0.28 0.29
Small Hotel............................... First Cost.................. 10,966 10,348 9,858 10,557 11,222
$/ft2....................... 0.25 0.24 0.23 0.24 0.26
Mid-rise Apartment........................ First Cost.................. 3,462 3,196 2,381 2,003 2,403
$/ft2....................... 0.10 0.09 0.07 0.06 0.07
--------------------------------------------------------------------------------------------------------------------------------------------------------
For LCC net savings, DOE used a similar approach to that used for
incremental first cost and first year energy cost savings. That is, DOE
developed the national annual LCC net savings \23\ for building types
by multiplying the average (across climate zones) LCC net savings
(determined from the DOE ASHRAE Standard 90.1 cost-effectiveness
analysis) by the fraction of the Federal sector construction volume
shown in Table IV.1, and then multiplying that by the total estimate of
Federal new construction floorspace.\24\ Table IV.9 \25\ and Table
IV.10 show annual LCC net savings by prototype buildings for ASHRAE
Standard 90.1-2016 compared to ASHRAE Standard 90.1-2013 and for ASHRAE
Standard 90.1-2019 compared to ASHRAE Standard 90.1-2016 respectively,
and Table IV.11 shows the combined LCC associated with the 2016 and
2019 versions of ASHRAE Standard 90.1. As was done for the incremental
cost analysis, the 2016 LCC analysis was adjusted to use the same
underlying
[[Page 20280]]
economic assumptions as the 2019 version, including fuel prices, fuel
price escalations, labor and material costs, and the removal of sales
tax. The resulting total LCC net savings for 19.54 million square feet
of annual construction was estimated to be $161.9 million. The average
LCC net savings in year 1 was estimated to be $8.29 per square foot.
Note the annual LCC savings are for one year of Federal commercial and
high-rise multi-family residential construction and that those savings
would accumulate over the LCC evaluation period. For the purpose of
this analysis, DOE relied on a 30-year period.\26\
---------------------------------------------------------------------------
\23\ The energy costs used were the national average energy
costs used by ASHRAE in the development of Standard 90.1-2019. To
quote the cost-effectiveness analysis report ``Energy rates used to
calculate the energy costs from the modeled energy usage were $0.98/
therm for fossil fuel and $0.1063/kWh for electricity. These rates
were used for the 90.1-2019 energy analysis and derived from the EIA
data. These were the values approved by the SSPC 90.1 for cost-
effectiveness for the evaluation of individual addenda during the
development of 90.1-2019.''
\24\ For the Federal office building, the small and large office
prototype LCCs were weighted by estimated fraction of small and
large offices observed in the FRPP MS database over the past 10
years of construction. For the Federal education building, the
primary school prototype LCC was used. For the Federal dorm/barracks
building type, the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
\25\ Note that the values in Table IV.9 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for Standard 90.1-2016, which were in 2018$. This
adjustment was made using the GDP deflator value to correct for
inflation between 2018 and 2020. Organization for Economic Co-
operation and Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank of St. Louis;
fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17,
2021. These values have also been adjusted to reflect the same
underlying economic assumptions as the 2019 version, and sales tax
has also been removed.
\26\ Lavappa, P. and J. Kneifel. 2021. Energy Price Indices and
Discount Factors for Life-Cycle Cost Analysis-2021 Annual Supplement
to NIST Handbook 135.
Table IV.9--Annual Life-Cycle Cost (LCC) Net Savings (2020$) for ASHRAE Standard 90.1-2016 vs. ASHRAE Standard
90.1-2013
----------------------------------------------------------------------------------------------------------------
ASHRAE climate zone
-------------------------------------------------------------------------------
Prototype Value
-------------------------------------------------------------------------------
2A 3A 3B 4A 5A
----------------------------------------------------------------------------------------------------------------
Small Office:
Total....................... $11,545 $11,362 $11,605 $9,814 $11,502
$/ft\2\..................... 2.10 2.07 2.11 1.78 2.09
Large Office:
Total....................... 393,008 459,357 166,387 584,969 722,155
$/ft\2\..................... 0.79 0.92 0.33 1.17 1.45
Stand-alone Retail:
Total....................... 297,938 294,578 289,116 290,447 287,461
$/ft\2\..................... 12.07 11.93 11.71 11.76 11.64
Primary School:
Total....................... 383,418 394,371 299,407 349,720 402,682
$/ft\2\..................... 5.18 5.33 4.05 4.73 5.44
Small Hotel:
Total....................... 244,166 236,409 225,204 244,098 261,430
$/ft\2\..................... 5.65 5.47 5.21 5.65 6.05
Mid-rise Apartment:
Total....................... 67,323 63,971 65,950 54,724 83,693
$/ft\2\..................... 2.00 1.90 1.95 1.62 2.48
----------------------------------------------------------------------------------------------------------------
Table IV.10--Annual Life-Cycle Cost (LCC) Net Savings (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard
90.1-2016
----------------------------------------------------------------------------------------------------------------
ASHRAE climate zone
-------------------------------------------------------------------------------
Prototype Value
-------------------------------------------------------------------------------
2A 3A 3B 4A 5A
----------------------------------------------------------------------------------------------------------------
Small Office:
Total....................... $22,458 $22,257 $22,670 $21,425 $21,303
$/ft\2\..................... 4.08 4.05 4.12 3.89 3.87
Large Office:
Total....................... 2,140,166 2,137,734 1,907,461 2,083,232 2,054,131
$/ft\2\..................... 4.29 4.29 3.83 4.18 4.12
Stand-alone Retail:
Total....................... 120,306 113,599 117,007 108,246 106,638
$/ft\2\..................... 4.87 4.60 4.74 4.38 4.32
Primary School:
Total....................... 395,974 370,009 398,497 367,937 372,306
$/ft\2\..................... 5.35 5.00 5.39 4.97 5.03
Small Hotel:
Total....................... 604,477 600,247 601,537 592,772 590,215
$/ft\2\..................... 13.99 13.89 13.92 13.72 13.66
Mid-rise Apartment:
Total....................... 88,940 89,183 73,209 57,750 56,579
$/ft\2\..................... 2.64 2.64 2.17 1.71 1.68
----------------------------------------------------------------------------------------------------------------
Table IV.11--Annual Life-Cycle Cost (LCC) Net Savings (2020$) for ASHRAE Standard 90.1-2019 vs. ASHRAE Standard
90.1-2013
----------------------------------------------------------------------------------------------------------------
ASHRAE climate zone
-------------------------------------------------------------------------------
Prototype Value
-------------------------------------------------------------------------------
2A 3A 3B 4A 5A
----------------------------------------------------------------------------------------------------------------
Small Office:
Total....................... $34,003 $33,620 $34,274 $31,238 $32,805
$/ft\2\..................... 6.18 6.11 6.23 5.68 5.96
Large Office:
Total....................... 2,533,174 2,597,090 2,073,848 2,668,200 2,776,287
$/ft\2\..................... 5.08 5.21 4.16 5.35 5.57
Stand-alone Retail:
[[Page 20281]]
Total....................... 418,244 408,176 406,123 398,693 394,099
$/ft\2\..................... 16.94 16.53 16.45 16.15 15.96
Primary School:
Total....................... 779,392 764,380 697,904 717,657 774,987
$/ft\2\..................... 10.54 10.33 9.44 9.70 10.48
Small Hotel:
Total....................... 848,643 836,656 826,742 836,871 851,646
$/ft\2\..................... 19.64 19.37 19.14 19.37 19.71
Mid-rise Apartment:
Total....................... 156,263 153,154 139,159 112,474 140,271
$/ft\2\..................... 4.63 4.54 4.12 3.33 4.16
----------------------------------------------------------------------------------------------------------------
DOE determined that the total incremental first cost estimate for
Federal buildings (as mapped to the prototype buildings in Table IV.1)
is a savings of $32.67 million per year, with an average first cost
decrease of $1.67 per square foot. DOE determined that the total first
year energy cost estimate is a savings of $3.4 million per year, with
an average first year energy cost savings of $0.17 per square foot. DOE
estimated $161.9 million in annual LCC net savings for the entire
Federal commercial and multi-family high-rise buildings sector with an
average LCC net savings of $8.29 per square foot.
DOE also conducted a net benefits and costs analysis using a 30-
year analysis period and an assumed building lifetime of 30 years. The
building lifetime assumption was made to correspond with availability
of underlying data from the cost-effectiveness analysis conducted by
DOE's State building energy codes program.
DOE calculated the net present value (NPV) of the change in
equipment cost and reduced operating cost associated with the
difference between ASHRAE 90.1-2013 and ASHRAE 90.1-2019. The NPV is
the value in the present of a time-series of costs and savings, equal
to the present value of savings in operating cost minus the present
value of the increased total equipment cost to consumers.
DOE determined the total increased equipment cost for each year of
the analysis period (2022-2051) using the incremental construction cost
described previously. DOE determined the present value of operating
cost savings for each year from the beginning of the analysis period to
the year when all Federal buildings constructed by 2051 have been
retired, assuming a 30-year lifetime of the building.
The average annual operating cost includes the costs for energy,
repair or replacement of building components (e.g., heating and cooling
equipment, lighting, and envelope measures), and maintenance of the
building. DOE determined the per-unit annual savings in operating cost
based on the savings in energy costs plus replacement and maintenance
cost savings, which were calculated in the underlying cost-
effectiveness analysis by DOE's State building energy codes program.
While DOE used the methodology and prices described above to calculate
first year energy cost savings and LCC net savings, for the NPV
calculations, DOE determined the per-unit annual savings in operating
cost by multiplying the per square foot annual electricity and natural
gas savings in energy consumption by the appropriate energy price from
EIA's AEO2021.\27\ DOE forecasted energy prices based on projected
average annual price changes in EIA's AEO2021 to develop the operating
cost savings through the analysis period.
---------------------------------------------------------------------------
\27\ DOE--U.S. Department of Energy. 2021. Annual Energy Outlook
2021 with Projections to 2050. Washington, DC Available at
www.eia.gov/outlooks/aeo/.
---------------------------------------------------------------------------
DOE uses national discount rates to calculate national NPV. DOE
estimated NPV using both a 3-percent and a 7-percent real discount
rate, in accordance with the Office of Management and Budget's guidance
to Federal agencies on the development of regulatory analysis,
particularly section E therein: Identifying and Measuring Benefits and
Costs.\28\ The NPV is the sum over time of the discounted net savings.
---------------------------------------------------------------------------
\28\ Office of Management and Budget. OMB Circular A-4,
Regulatory Analysis. 2003. OMB: Washington, DC September 17, 2003.
www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf.
---------------------------------------------------------------------------
The present value of increased equipment costs is the annual total
cost increase in each year (the difference between ASHRAE 90.1-2019 and
ASHRAE 90.1-2013), discounted to the present, and summed throughout the
analysis period (2022 through 2051). Because new construction is held
constant through the analysis period, the installed cost is constant.
The present value of savings in operating cost is the annual
savings in operating cost (the difference between ASHRAE 90.1-2019 and
ASHRAE 90.1-2013), discounted to the present and summed through the
analysis period (2022 through 2051). Savings are decreases in operating
cost associated with the higher energy efficiency associated with
buildings designed to ASHRAE 90.1-2019 compared to ASHRAE 90.1-2013.
Total annual savings in operating cost are the savings per square foot
multiplied by the number of square feet that survive in a particular
year through the lifetime of the buildings constructed in the last year
of the analysis period.
B. Monetization of Emissions Reduction Benefits
As part of the development of this rule, for the purpose of
complying with the requirements of Executive Order 12866, DOE
considered the estimated monetary benefits from the reduced emissions
of CO2, CH4, N2O, NOX, and
SO2 that are expected to result from this rule. In order to
make this calculation analogous to the calculation of the NPV of
consumer benefit, DOE considered the reduced emissions expected to
result over the lifetime of buildings constructed in the analysis
period. This section summarizes the basis for the values used for
monetizing the emissions benefits and presents the values considered in
this rule.
On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-
30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-
[[Page 20282]]
JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of
the federal government's appeal of that injunction or a further court
order. Among other things, the preliminary injunction enjoined the
defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group on
the Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach prior
to the injunction and present monetized benefits where appropriate and
permissible under law.
1. Monetization of Greenhouse Gas Emissions
For the purpose of complying with the requirements of Executive
Order 12866, DOE estimates the monetized benefits of the reductions in
emissions of CO2, CH4, and N2O by
using a measure of the social cost (``SC'') of each pollutant (e.g.,
SC-GHGs). These estimates represent the monetary value of the net harm
to society associated with a marginal increase in emissions of these
pollutants in a given year, or the benefit of avoiding that increase.
These estimates are intended to include (but are not limited to)
climate-change-related changes in net agricultural productivity, human
health, property damages from increased flood risk, disruption of
energy systems, risk of conflict, environmental migration, and the
value of ecosystem services. DOE exercises its own judgment in
presenting monetized climate benefits as recommended by applicable
Executive Orders and guidance, and DOE would reach the same conclusion
presented in this notice in the absence of the social cost of
greenhouse gases, including the February 2021 Interim Estimates
presented by the Interagency Working Group on the Social Cost of
Greenhouse Gases. DOE exercises its own judgment in presenting
monetized climate benefits as recommended by applicable Executive
Orders, and DOE would reach the same conclusion presented in this
notice in the absence of the social cost of greenhouse gases, including
the February 2021 Interim Estimates presented by the Interagency
Working Group on the Social Cost of Greenhouse Gases.
DOE estimated the global social benefits of CO2,
CH4, and N2O reductions (i.e., SC-GHGs) using the
estimates presented in the Technical Support Document: Social Cost of
Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive
Order 13990 published in February 2021 by the Interagency Working Group
on the Social Cost of Greenhouse Gases (IWG) (IWG, 2021).\29\ The SC-
GHGs is the monetary value of the net harm to society associated with a
marginal increase in emissions in a given year, or the benefit of
avoiding that increase. In principle, SC-GHGs includes the value of all
climate change impacts, including (but not limited to) changes in net
agricultural productivity, human health effects, property damage from
increased flood risk and natural disasters, disruption of energy
systems, risk of conflict, environmental migration, and the value of
ecosystem services. The SC-GHGs therefore, reflects the societal value
of reducing emissions of the gas in question by one metric ton. The SC-
GHGs is the theoretically appropriate value to use in conducting
benefit-cost analyses of policies that affect CO2,
N2O and CH4 emissions. As a member of the IWG
involved in the development of the February 2021 SC-GHG TSD), the DOE
agrees that the interim SC-GHG estimates represent the most appropriate
estimate of the SC-GHG until revised estimates have been developed
reflecting the latest, peer-reviewed science.
---------------------------------------------------------------------------
\29\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at: www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf
(last accessed March 17, 2021).
---------------------------------------------------------------------------
The SC-GHGs estimates presented here were developed over many
years, using transparent process, peer-reviewed methodologies, the best
science available at the time of that process, and with input from the
public. Specifically, in 2009, an interagency working group (IWG) that
included the DOE and other executive branch agencies and offices was
established to ensure that agencies were using the best available
science and to promote consistency in the social cost of carbon (SC-
CO2) values used across agencies. The IWG published SC-
CO2 estimates in 2010 that were developed from an ensemble
of three widely cited integrated assessment models (IAMs) that estimate
global climate damages using highly aggregated representations of
climate processes and the global economy combined into a single
modeling framework. The three IAMs were run using a common set of input
assumptions in each model for future population, economic, and
CO2 emissions growth, as well as equilibrium climate
sensitivity (ECS)--a measure of the globally averaged temperature
response to increased atmospheric CO2 concentrations. These
estimates were updated in 2013 based on new versions of each IAM. In
August 2016 the IWG published estimates of the social cost of methane
(SC-CH4) and nitrous oxide (SC-N2O) using
methodologies that are consistent with the methodology underlying the
SC-CO2 estimates. The modeling approach that extends the IWG
SC-CO2 methodology to non-CO2 GHGs has undergone
multiple stages of peer review. The SC-CH4 and SC-
N2O estimates were developed by Marten et al. (2015) and
underwent a standard double-blind peer review process prior to journal
publication. In 2015, as part of the response to public comments
received to a 2013 solicitation for comments on the SC-CO2
estimates, the IWG announced a National Academies of Sciences,
Engineering, and Medicine review of the SC-CO2 estimates to
offer advice on how to approach future updates to ensure that the
estimates continue to reflect the best available science and
methodologies. In January 2017, the National Academies released their
final report, Valuing Climate Damages: Updating Estimation of the
Social Cost of Carbon Dioxide, and recommended specific criteria for
future updates to the SC-CO2 estimates, a modeling framework
to satisfy the specified criteria, and both near-term updates and
longer-term research needs pertaining to various components of the
estimation process (National Academies, 2017).\30\ Shortly thereafter,
in March 2017, President Trump issued Executive Order 13783, which
disbanded the IWG, withdrew the previous TSDs, and directed agencies to
ensure SC-CO2 estimates used in regulatory analyses are
consistent with the guidance contained in OMB's Circular A-4,
``including with respect to the consideration of domestic versus
international impacts and the consideration of appropriate discount
rates'' (E.O. 13783, Section 5(c)).
---------------------------------------------------------------------------
\30\ See National Academies of Sciences, Engineering, and
Medicine. 2017. Valuing Climate Damages: Updating Estimation of the
Social Cost of Carbon Dioxide. Washington, DC: The National
Academies Press. doi.org/10.17226/24651.
---------------------------------------------------------------------------
On January 20, 2021, President Biden issued Executive Order 13990,
which re-established the IWG and directed it to ensure that the U.S.
Government's estimates of the social cost of carbon and other
greenhouse gases reflect the
[[Page 20283]]
best available science and the recommendations of the National
Academies (2017). The IWG was tasked with first reviewing the SC-GHG
estimates currently used in Federal analyses and publishing interim
estimates within 30 days of the E.O. that reflect the full impact of
GHG emissions, including by taking global damages into account. The
interim SC-GHG estimates published in February 2021, specifically the
SC-CH4 estimates, are used here to estimate the climate
benefits for this rule. The E.O. instructs the IWG to undertake a
fuller update of the SC-GHG estimates by January 2022 that takes into
consideration the advice of the National Academies (2017) and other
recent scientific literature.
The February 2021 SC-GHG TSD provides a complete discussion of the
IWG's initial review conducted under E.O. 13990. In particular, the IWG
found that the SC-GHG estimates used under E.O. 13783 fail to reflect
the full impact of GHG emissions in multiple ways. First, the IWG found
that a global perspective is essential for SC-GHG estimates because it
fully captures climate impacts that affect the United States and which
have been omitted from prior U.S.-specific estimates due to
methodological constraints. Examples of omitted effects include direct
effects on U.S. citizens, assets, and investments located abroad,
supply chains, and tourism, and spillover pathways such as economic and
political destabilization and global migration. In addition, assessing
the benefits of U.S. GHG mitigation activities requires consideration
of how those actions may affect mitigation activities by other
countries, as those international mitigation actions will provide a
benefit to U.S. citizens and residents by mitigating climate impacts
that affect U.S. citizens and residents. If the United States does not
consider impacts on other countries, it is difficult to convince other
countries to consider the impacts of their emissions on the United
States. As a member of the IWG involved in the development of the
February 2021 SC-GHG TSD, DOE agrees with this assessment and,
therefore, in this rule DOE centers attention on a global measure of
SC-GHG. This approach is the same as that taken in DOE regulatory
analyses from 2012 through 2016. Prior to that, in 2008 DOE presented
Social Cost of Carbon (SCC) estimates based on values the
Intergovernmental Panel on Climate Change (IPCC) identified in
literature at that time. As noted in the February 2021 SC-GHG TSD, the
IWG will continue to review developments in the literature, including
more robust methodologies for estimating a U.S.-specific SC-GHG value,
and explore ways to better inform the public of the full range of
carbon impacts. As a member of the IWG, DOE will continue to follow
developments in the literature pertaining to this issue.
Second, the IWG found that the use of the social rate of return on
capital (7 percent under current OMB Circular A-4 guidance) to discount
the future benefits of reducing GHG emissions inappropriately
underestimates the impacts of climate change for the purposes of
estimating the SC-GHG. Consistent with the findings of the National
Academies (2017) and the economic literature, the IWG continued to
conclude that the consumption rate of interest is the theoretically
appropriate discount rate in an intergenerational context (IWG 2010,
2013, 2016a, 2016b), and recommended that discount rate uncertainty and
relevant aspects of intergenerational ethical considerations be
accounted for in selecting future discount rates. As a member of the
IWG involved in the development of the February 2021 SC-GHG TSD, DOE
agrees with this assessment and will continue to follow developments in
the literature pertaining to this issue.
While the IWG works to assess how best to incorporate the latest,
peer reviewed science to develop an updated set of SC-GHG estimates, it
set the interim estimates to be the most recent estimates developed by
the IWG prior to the group being disbanded in 2017. The estimates rely
on the same models and harmonized inputs and are calculated using a
range of discount rates. As explained in the February 2021 SC-GHG TSD,
the IWG has recommended that agencies to revert to the same set of four
values drawn from the SC-GHG distributions based on three discount
rates as were used in regulatory analyses between 2010 and 2016 and
subject to public comment. For each discount rate, the IWG combined the
distributions across models and socioeconomic emissions scenarios
(applying equal weight to each) and then selected a set of four values
recommended for use in benefit-cost analyses: An average value
resulting from the model runs for each of three discount rates (2.5
percent, 3 percent, and 5 percent), plus a fourth value, selected as
the 95th percentile of estimates based on a 3 percent discount rate.
The fourth value was included to provide information on potentially
higher-than-expected economic impacts from climate change. As explained
in the February 2021 SC-GHG TSD, and DOE agrees, this update reflects
the immediate need to have an operational SC-GHG for use in regulatory
benefit-cost analyses and other applications that was developed using a
transparent process, peer-reviewed methodologies, and the science
available at the time of that process. Those estimates were subject to
public comment in the context of dozens of proposed rulemakings as well
as in a dedicated public comment period in 2013.
DOE's derivations of the SC-GHGs (i.e., SC-CO2, SC-
N2O, and SC-CH4) values used for this rule are
discussed in the following sections, and the results of DOE's analyses
estimating the benefits of the reductions in emissions of these
pollutants are presented in section VII.A of this document.
a. Social Cost of Carbon
The SC-CO2 values used for this rule were generated
using the values presented in the 2021 update from the IWG's February
2021 TSD. Table IV.12 shows the updated sets of SC-CO2
estimates from the latest interagency update in 5-year increments from
2020 to 2050. For purposes of capturing the uncertainties involved in
regulatory impact analysis, DOE has determined it is appropriate
include all four sets of SC-CO2 values, as recommended by
the IWG.\31\
---------------------------------------------------------------------------
\31\ For example, the February 2021 TSD discusses how the
understanding of discounting approaches suggests that discount rates
appropriate for intergenerational analysis in the context of climate
change may be lower than 3 percent.
[[Page 20284]]
Table IV.12--Annual SC-CO2 Values From 2021 Interagency Update, 2020-2050
[2020$ per metric ton CO2]
----------------------------------------------------------------------------------------------------------------
Discount rate
---------------------------------------------------------------------------
Year 5% 3% 2.5% 3%
---------------------------------------------------------------------------
Average Average Average 95th percentile
----------------------------------------------------------------------------------------------------------------
2020................................ 14 51 76 152
2025................................ 17 56 83 169
2030................................ 19 62 89 187
2035................................ 22 67 96 206
2040................................ 25 73 103 225
2045................................ 28 79 110 242
2050................................ 32 85 116 260
----------------------------------------------------------------------------------------------------------------
In calculating the potential global benefits resulting from reduced
CO2 emissions, DOE used the values from the 2021 interagency
report, adjusted to 2020$ using the implicit price deflator for gross
domestic product (``GDP'') from the Bureau of Economic Analysis. For
each of the four sets of SC-CO2 cases specified, the values
for emissions in 2020 were $14, $51, $76, and $152 per metric ton
avoided (values expressed in 2020$). DOE derived values from 2051 to
2070 based on estimates published by EPA.\32\ These estimates are based
on methods, assumptions, and parameters identical to the 2020-2050
estimates published by the IWG. DOE derived values after 2070 based on
the trend in 2060-2070 in each of the four cases in the IWG update.
---------------------------------------------------------------------------
\32\ See EPA, Revised 2023 and Later Model Year Light-Duty
Vehicle GHG Emissions Standards: Regulatory Impact Analysis,
Washington, DC, December 2021. Available at: www.epa.gov/system/files/documents/2021-12/420r21028.pdf (last accessed January 13,
2022).
---------------------------------------------------------------------------
DOE multiplied the CO2 emissions reduction estimated for
each year by the SC-CO2 value for that year in each of the
four cases. To calculate a present value of the stream of monetary
values, DOE discounted the values in each of the four cases using the
specific discount rate that had been used to obtain the SC-
CO2 values in each case.
b. Social Cost of Methane and Nitrous Oxide
The SC-CH4 and SC-N2O values used for this
rule were generated using the values presented in the 2021 update from
the IWG.\33\ Table IV.13 shows the updated sets of SC-CH4
and SC-N2O estimates from the latest interagency update in
5-year increments from 2020 to 2050. To capture the uncertainties
involved in regulatory impact analysis, DOE has determined it is
appropriate to include all four sets of SC-CH4 and SC-
N2O values, as recommended by the IWG.
---------------------------------------------------------------------------
\33\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at: www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf
(last accessed March 17, 2021).
Table IV.13--Annual SC-CH4 and SC-N2O Values From 2021 Interagency Update, 2020-2050
[2020$ per metric ton]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SC-CH4 SC-N2O
-------------------------------------------------------------------------------------------------------------------------------------
Discount rate and statistic Discount rate and statistic
Year -------------------------------------------------------------------------------------------------------------------------------------
5% 3% 2.5% 3% 5% 3% 2.5% 3%
-------------------------------------------------------------------------------------------------------------------------------------
Average Average Average 95th percentile Average Average Average 95th percentile
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2020...................................................... 670 1500 2000 3900 5800 18000 27000 48000
2025...................................................... 800 1700 2200 4500 6800 21000 30000 54000
2030...................................................... 940 2000 2500 5200 7800 23000 33000 60000
2035...................................................... 1100 2200 2800 6000 9000 25000 36000 67000
2040...................................................... 1300 2500 3100 6700 10000 28000 39000 74000
2045...................................................... 1500 2800 3500 7500 12000 30000 42000 81000
2050...................................................... 1700 3100 3800 8200 13000 33000 45000 88000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DOE multiplied the CH4 and N2O emissions
reduction estimated for each year by the SC-CH4 and SC-
N2O estimates for that year in each of the cases. To
calculate a present value of the stream of monetary values, DOE
discounted the values in each of the cases using the specific discount
rate that had been used to obtain the SC-CH4 and SC-
N2O estimates in each case.
2. Monetization of Other Air Pollutants
DOE estimated the monetized value of NOX and
SO2 emissions reductions from electricity generation using
benefit per ton estimates based on air quality modeling and
concentration-response functions conducted for the Clean Power Plan
final rule. 84 FR 32520. DOE used EPA's values for NOX (as
PM2.5) and SO2 for 2020, 2025, and 2030
calculated with discount rates of 3 percent and 7 percent, and EPA's
values for ozone season NOX, which do not involve
discounting since the impacts are in the same year as emissions. DOE
used linear interpolation to define values for the years between 2020
and 2025 and between 2025 and 2030; for years beyond 2030 the values
are held constant.
DOE also estimated the monetized value of NOX and
SO2 emissions reductions from site use of natural gas in
buildings impacted by this rule using benefit-per-ton estimates from
the EPA's
[[Page 20285]]
Benefits Mapping and Analysis Program. Although none of the sectors
covered by EPA refers specifically to residential and commercial
buildings, the sector called ``area sources'' would be a reasonable
proxy for residential and commercial buildings.\34\ The EPA document
provides high and low estimates for 2025 and 2030 at 3- and 7-percent
discount rates.\35\ DOE used the same linear interpolation and
extrapolation as it did with the values for electricity generation. DOE
primarily relied on the low estimates to be conservative.
---------------------------------------------------------------------------
\34\ ``Area sources'' represents all emission sources for which
states do not have exact (point) locations in their emissions
inventories. Because exact locations would tend to be associated
with larger sources, ``area sources'' would be fairly representative
of small dispersed sources like homes and businesses.
\35\ ``Area sources'' are a category in the 2018 document from
EPA, but are not used in the 2021 document cited above. See:
www.epa.gov/sites/default/files/2018-02/documents/sourceapportionmentbpttsd_2018.pdf.
---------------------------------------------------------------------------
DOE multiplied the emissions reduction (in tons) in each year by
the associated $/ton values, and then discounted each series using
discount rates of 3 percent and 7 percent as appropriate. On March 16,
2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the
federal government's emergency motion for stay pending appeal of the
February 11, 2022, preliminary injunction issued in Louisiana v. Biden,
No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's
order, the preliminary injunction is no longer in effect, pending
resolution of the federal government's appeal of that injunction or a
further court order. Among other things, the preliminary injunction
enjoined the defendants in that case from relying on ``adopting,
employing, treating as binding, or relying upon'' the interim estimates
of the social cost of greenhouse gases--which were issued by the
Interagency Working Group on the Social Cost of Greenhouse Gases on
February 26, 2021--to monetize the benefits of reducing greenhouse gas
emissions. In the absence of further intervening court orders, DOE will
revert to its approach prior to the injunction and present monetized
benefits in accordance with applicable Executive Orders, and applicable
guidance.
C. Conclusion
This analysis results in a cumulative net present value (NPV) of
total benefits of the rule of $1.66 billion (at a 7-percent discount
rate) and $3.48 billion (at a 3-percent discount rate). This NPV
expresses the estimated total value of future operating cost savings
minus the estimated increased building costs for new Federal
construction for 2022-2051 with a 30-year lifetime and includes
monetized climate and health benefits (see Table IV.14). DOE estimates
climate benefits from a reduction in greenhouse gases (GHG) using four
different estimates of the social cost of CO2 (``SC-
CO2''), the social cost of methane (``SC-CH4''),
and the social cost of nitrous oxide (``SC-N2O''). Together
these represent the social cost of GHG (SC-GHG). DOE used interim SC-
GHG values developed by an Interagency Working Group on the Social Cost
of Greenhouse Gases (IWG).36 37 DOE does not have a single
central SC-GHG point estimate and it emphasizes the importance and
value of considering the benefits calculated using all four SC-GHG
estimates. DOE is currently only monetizing (for SO2 and
NOX) PM2.5 precursor health benefits and (for
NOX) ozone precursor health benefits, but will continue to
assess the ability to monetize other effects such as health benefits
from reductions in direct PM2.5 emissions.
---------------------------------------------------------------------------
\36\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. https://www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalvSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf.
\37\ On March 16, 2022, the Fifth Circuit Court of Appeals (No.
22-30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction
issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a
result of the Fifth Circuit's order, the preliminary injunction is
no longer in effect, pending resolution of the federal government's
appeal of that injunction or a further court order. Among other
things, the preliminary injunction enjoined the defendants in that
case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse
gases--which were issued by the Interagency Working Group on the
Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach
prior to the injunction and present monetized benefits where
appropriate and permissible under law.
---------------------------------------------------------------------------
The benefits and costs of the rulemaking can also be expressed in
terms of annualized values. The annualized net benefit is (1) the
annualized national economic value (expressed in 2020$) of the benefits
from building to ASHRAE 90.1-2019, consisting primarily of operating
cost savings from using less energy), minus increases in building
costs, and (2) the annualized monetary value of the benefits of climate
(GHG) and health (NOX, and SO2) emission
reductions. Table IV.15 shows the annualized values for this
rulemaking, expressed in 2020$. In the tables, total benefits for both
the 3-percent and 7-percent cases are presented using the average GHG
social costs with 3-percent discount rate, but the Department
emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG cases.
Table IV.14--Summary of Monetized Economic Benefits and Costs
[Billion 2020$]
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Billion $2020
------------------------------------------------------------------------
3% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings................ 1.86
Climate Benefits *............................. 0.38
Health Benefits **............................. 0.60
------------------------
Total Benefits [dagger].................... 2.84
Consumer Incremental Product Costs -0.64
[dagger][dagger]..............................
------------------------
Net Benefits............................... 3.48
------------------------------------------------------------------------
7% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings................ 0.65
[[Page 20286]]
Climate Benefits *............................. 0.38
Health Benefits **............................. 0.22
------------------------
Total Benefits [dagger].................... 1.25
Consumer Incremental Product Costs -0.41
[dagger][dagger]..............................
------------------------
Net Benefits............................... 1.66
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new commercial and multi-family high-rise buildings built in 2022-
2051. These results include benefits to consumers which accrue after
2051 from the buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown but the
Department does not have a single central SC-GHG point estimate, and
it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health
benefits, but will continue to assess the ability to monetize other
effects such as health benefits from reductions in direct PM2.5
emissions. The health benefits are presented at real discount rates of
3 and 7 percent. See section IV.B of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as
installation costs.
Table IV.15--Annualized Monetized Benefits, Costs, and Net Benefits
[Million 2020$]
[2022-2051 plus 30-year lifetime]
----------------------------------------------------------------------------------------------------------------
Million 2020$/year
Category -------------------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings............................... 94.9 52.5
Climate Benefits *............................................ 19.1 19.1
Health Benefits **............................................ 30.7 18.1
-------------------------------------------------
Total Benefits [dagger]................................... 144.8 89.7
Costs [dagger][dagger]........................................ -32.7 -32.7
-------------------------------------------------
Net Benefits.............................................. 177.5 122.4
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-
rise buildings built in 2022-2051. These results include benefits to consumers which accrue after 2051 from
the buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane
(SC-CH4), and nitrous oxide (SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates;
95th percentile at 3 percent discount rate). Together these represent the social cost of greenhouse gases (SC-
GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a
3 percent discount rate are shown, but the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits calculated using all four SC-GHG
estimates. See section IV.B of this document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing
(for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will
continue to assess the ability to monetize other effects such as health benefits from reductions in direct
PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See section IV.B
of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings and benefits related to public health
and climate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of the federal government's appeal of that
injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in
that case from ``adopting, employing, treating as binding, or relying upon'' the interim estimates of the
social cost of greenhouse gases--which were issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its approach prior to the injunction and
present monetized benefits where appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as installation costs.
Accordingly, DOE has determined that the implementation of ASHRAE
Standard 90.1-2019 versus Standard 90.1-2013 for Federal commercial and
multi-family high-rise buildings is cost-effective. DOE is presenting
monetized climate benefits in accordance with the applicable Executive
Orders and DOE would reach the same conclusion
[[Page 20287]]
presented in this notice in the absence of the social cost of
greenhouse gases, including the February 2021 Interim Estimates
presented by the Interagency Working Group on the Social Cost of
Greenhouse Gases.
V. Compliance Date
This final rule applies to new Federal commercial and multi-family
high-rise residential buildings for which design for construction
begins on or after one year from the publication date of this
rulemaking in the Federal Register. (42 U.S.C. 6834(a)(1)) Such
buildings must be designed to exceed the energy efficiency level of the
appropriate updated voluntary standard by 30 percent if LCC effective.
However, at a minimum, such buildings must achieve the energy
efficiency equal to that of the appropriate updated voluntary standard.
One year lead time before the design for construction begins is
consistent with DOE's previous updates to the energy efficiency
baselines and the original statutory mandate for Federal building
standards. One year lead time before design for construction begins
helps minimize compliance costs to agencies, which may have planned
buildings in various stages of design and allows for design changes to
more fully consider LCC-effective measures (as opposed to having to
revise designs in development, which may make incorporation of energy
efficiency measure more difficult or expensive).
VI. Reference Resources
DOE first prepared this list of resources to help Federal agencies
achieve building energy efficiency levels for the original rulemaking
establishing the baseline energy performance standards for new Federal
commercial and multi-family high-rise residential buildings. DOE has
reviewed these resources and believes that they continue to be useful
for helping agencies maximize their energy efficiency levels. DOE has
updated this resource list as necessary. These resources come in many
forms and in a variety of media. Resources are provided for all
buildings, and also specifically for commercial and multi-family high-
rise residential buildings. FEMP offers an online search database of
tools that can help agencies reduce energy use and meet Federal laws
and requirements. Tools include software, calculators, data sets, and
databases created by DOE and other Federal organizations. This resource
can be found at www.energy.gov/eere/femp/federal-energy-management-tools.
A. Resources for Commercial and Multi-Family High-Rise Residential
Buildings
The following references and sources are provided to aid interested
parties in gathering additional information and specifics regarding
various aspects of this rule.
(1) Energy Efficient Products--FEMP and U.S. Environmental Protection
Agency (EPA) ENERGY STAR Program
www.energy.gov/eere/femp/search-energy-efficient-products
www.energy.gov/eere/femp/energy-efficient-products-and-energy-saving-technologies
Federal agencies are required by EPAct 2005 and 10 CFR part 436 to
specify FEMP designated or ENERGY STAR equipment, including building
mechanical and lighting equipment and builder-supplied appliances, for
purchase and installation in all new construction unless the agency can
show that the use of such equipment is not life-cycle cost-effective.
This equipment is generally more efficient than the corresponding
requirements of ASHRAE Standard 90.1-2019 and may be used to achieve
part of the savings required of Federal building designs. (This rule
does not require the use of EnergyStar or FEMP-designated equipment,
but the FEMP websites, accessed through the previous links, are
provided as useful resources for achieving part of the energy savings
required by the rule.)
(2) LCC Analysis--FEMP
www.wbdg.org/FFC/NIST/hdbk_135.pdf
nvlpubs.nist.gov/nistpubs/ir/2018/NIST.IR.85-3273-33.pdf
As detailed previously, agencies are required to determine the
percentage beyond compliance with ASHRAE Standard 90.1 that would be
life-cycle cost effective and to design new Federal buildings to
achieve that percentage. DOE has promulgated LCC analysis rules in 10
CFR part 436 subpart A Life-Cycle Cost Methodology and Procedures (55
FR 48220, Nov. 20, 1990, as amended at 61 FR 32650, June 25, 1996) that
conform to requirements in the Federal Energy Management Improvement
Act of 1988 (Pub. L. 100-615) and subsequent energy conservation
legislation. LCC guidance and required discount rates and energy price
projections are determined annually by FEMP and the Energy Information
Administration (EIA) and are published in the Annual Supplement to The
National Institute of Standards and Technology (NIST) Handbook 135:
``Energy Price Indices and Discount Factors for Life-Cycle Cost
Analysis.''
(3) Building Energy Efficiency Support Resources--DOE Building
Technologies Office
www.energy.gov/eere/buildings/building-technologies-office
www.energy.gov/eere/buildings/building-energy-modeling
www.energy.gov/eere/buildings/about-building-energy-modeling
The website for DOE's Building Technologies Office provides
information, case studies, and tools to help evaluate energy
efficiency, renewable energy, and sustainability in buildings. The
Whole-Building Energy Modeling (BEM) is a versatile, multipurpose tool
that is used in new building and retrofit design, code compliance,
green certification, qualification for tax credits and utility
incentives, and real-time building control. BEM can be used to assess
the inherent performance of a building while controlling for specific
use and operation.
(4) ASHRAE Standard 90.1-2019--ASHRAE
www.ashrae.org/technical-resources/standards-and-guidelines/read-only-versions-of-ashrae-standards
The baseline energy efficiency standard for commercial and multi-
family high-rise buildings is ANSI/ASHRAE/IESNA Standard 90.1-2019. A
read-only version of Standard 90.1-2019 can be found at the link
``Standard 90.1-2019, Energy Standard for Buildings Except Low-Rise
Residential Buildings.''
(5) Whole Building Design Guide (WBDG)--National Institute of Building
Sciences
www.wbdg.org
www.wbdg.org/design-objectives/sustainable/optimize-energy-use
The WBDG is a web-based portal providing government and industry
practitioners with one-stop access to up-to-date information on a wide
range of building-related guidance, criteria, and technology from a
``whole buildings'' perspective. Currently, WBDG is organized into
three major categories--design guidance, project management, and
operations & maintenance. Development of the WBDG is a collaborative
effort among Federal agencies, private sector companies, non-profit
organizations, and educational institutions.
(6) International Institute for Sustainable Laboratories (I2SL)
www.i2sl.org/resources/toolkit.html
[[Page 20288]]
Laboratory Benchmarking Tool
https://lbt.i2sl.org/
This website focuses on improving the energy efficiency and
environmental performance of laboratory space. The website includes
training, educational resources, and design and benchmarking tools
focused on laboratories.
(7) Sustainable Facilities Tool--GSA Office of Federal High-Performance
Buildings
https://sftool.gov/ www.gsa.gov/about-us/organization/office-of-governmentwide-policy/office-of-federal-highperformance-buildings
The GSA is tasked with putting our nation's public servants into
efficient, healthy buildings and buying goods and services that provide
maximum value to the taxpayer. The Sustainable Facilities Tool (SFTool)
was created by the GSA Office of Federal High-Performance Green
Buildings to connect Federal planners with new sustainability solutions
and to assist the GSA in realizing healthier, more efficient
workplaces. SFTool is an interactive website designed to show the user
how to build, buy, and operate green property. Project managers can
derive the most value from the SFTool by using it to understand Federal
sustainability requirements; build effective project delivery teams and
inform project planning; educate partners and stakeholders on the
benefits of considering sustainable solutions; and discover high-
performance, green building options and products.
(8) ASHRAE Advanced Energy Design Guide (AEDG) Series
www.ashrae.org/technical-resources/aedgs
To promote building energy efficiency, ASHRAE and its partners are
making the AEDGs available for free download. The zero-energy guides
offer designers and contractors the tools needed for achieving zero
energy buildings. The 50 percent guides offer designers and contractors
the tools needed for achieving a 50 percent energy savings compared to
buildings that meet the minimum requirements of Standard 90.1-2004, and
the 30 percent guides offer a 30 percent energy savings compared to
buildings that meet the minimum energy requirements of Standard 90.1-
1999. ASHRAE, in collaboration with the American Institute of
Architects (AIA), IES, U.S. Green Building Council (USGBC), and DOE,
continues to develop the AEDG series.
(9) ASHRAE Standard 90.1 Performance Based Compliance (Section 11 and
Appendix G)
www.energycodes.gov/performance_based_compliance#tools
The website for DOE's Building Energy Codes Program (BECP) provides
further information and tools to assist with the performance rating
method, including the following:
Spreadsheet-based compliance forms that meet the
documentation requirements of ASHRAE Standard 90.1-2019 section 11 and
Appendix G,
The ASHRAE Standard 90.1 section 11 and Appendix G
Submittal Review Manual (the Manual), a comprehensive reference for
reviewing modeling-based submittals, and
The 2010 and 2016 Performance Rating Method Reference
Manuals, which include procedure and process descriptions to help
provide consistency and accuracy to users of the Performance Rating
Method.
VII. Regulatory Analysis
A. Review Under Executive Order 12866, ``Regulatory Planning and
Review''
This final rule is an ``economically significant regulatory
action'' under Executive Order 12866, ``Regulatory Planning and
Review.'' 58 FR 51735 (October 4, 1993). Accordingly, this action was
subject to review by the Office of Information and Regulatory Affairs
in the Office of Management and Budget (OMB). OMB has completed its
review. DOE has also reviewed this regulation pursuant to Executive
Order 13563, issued on January 18, 2011. 76 FR 3281 (January 21, 2011).
E.O. 13563 is supplemental to and explicitly reaffirms the principles,
structures, and definitions governing regulatory review established in
Executive Order 12866.
As discussed previously in this final rule, DOE is required to
determine, based on cost-effectiveness, whether the standards for
Federal buildings should be updated to reflect an amendment to the
ASHRAE Standard. As stated previously, DOE complied with the statutory
language by analyzing the cost-effectiveness of ASHRAE Standard 90.1-
2019, which included, through DOE's involvement in the ASHRAE code
development process, consideration of ASHRAE's cost-effectiveness
criteria for Standard 90.1-2019.
Review under Executive Order 12866 requires an analysis of the
economic effect of the rule. For this purpose, DOE estimated
incremental first cost (in this case, the difference between the cost
of a building designed to meet ASHRAE Standard 90.1-2019 and a building
designed to meet ASHRAE Standard 90.1-2013) for the Federal commercial
and high-rise multi-family residential buildings sector, as well as LCC
net savings. First, DOE estimated that the annual full fuel cycle
national energy savings would be 0.273 trillion Btu (associated with
one year of Federal construction), that the cumulative (over the 30-
year analysis period) full fuel cycle national energy savings would be
0.12 quadrillion Btu, and that the cumulative (including building
lifetime savings) full fuel cycle national energy savings would be 0.23
quadrillion Btu (see Table VII.1, Table VII.2, and Table VII.3). Based
on these energy savings and using the methodology described in section
IV, DOE estimated the resulting incremental first cost, first year
energy cost savings, and annual LCC net savings. DOE determined that
the total incremental first cost estimate is a savings of $32.67
million per year, with an average first cost decrease of $1.67 per
square foot. DOE determined that the total first year energy cost
estimate is a savings of $3.4 million, with an average first year
energy cost savings of $0.17 per square foot. DOE estimated $161.9
million in annual LCC net savings for the entire Federal commercial and
multi-family high-rise buildings sector with an average LCC net savings
of $8.29 per square foot. (See Table VII.4).
Table VII.5 shows the monetized economic benefits and costs
expected to result from this rulemaking. Using a 7-percent discount
rate for consumer benefits and costs and health benefits, and a 3-
percent discount rate case for GHG social (climate) costs, the
estimated cost of this rulemaking is -$0.41 billion in increased
equipment costs, while the estimated benefits are $0.65 billion in
reduced equipment operating costs, $0.38 billion in climate benefits,
and $0.22 billion in health benefits. In this case, the net monetized
benefit amounts to $1.66 billion. Using a 3-percent discount rate for
all monetized benefits and costs, the estimated cost of this rulemaking
is -$0.64 billion in increased equipment costs, while the estimated
benefits are $1.86 billion in reduced equipment operating costs, $0.38
billion in climate benefits, and $0.60 billion in health benefits. In
this case, the net monetized benefit amounts to $3.48 billion.
Table VII.6 shows the annualized monetized economic benefits and
costs expected to result from this rulemaking. Using a 7-percent
discount rate for consumer benefits and costs and health benefits, and
a 3-percent discount rate case for GHG social (climate) costs, the
[[Page 20289]]
estimated cost of this rulemaking is -$32.7 million per year in
increased equipment costs, while the estimated annual benefits are
$52.5 million in reduced equipment operating costs, $19.1 million in
climate benefits, and $18.1 million in health benefits. In this case,
the net monetized benefit amounts to $122.4 million per year. Using a
3-percent discount rate for all monetized benefits and costs, the
estimated cost of this rulemaking is -$32.7 million per year in
increased equipment costs, while the estimated annual benefits are
$94.9 million in reduced equipment operating costs, $19.1 million in
climate benefits, and $30.7 million in health benefits. In this case,
the net monetized benefit amounts to $177.5 million per year.
Table VII.1--Annual Energy Savings for ASHRAE Standard 90.1-2019 vs.
ASHRAE Standard 90.1-2013
------------------------------------------------------------------------
Results--ASHRAE 90.1-
2019 compared to ASHRAE
Category 90.1-2013 baseline
(TBtu)
------------------------------------------------------------------------
Annual Site National Energy Savings (Trillion 0.106
Btu)..........................................
Annual Source National Energy Savings (Trillion 0.261
Btu)..........................................
Annual Full Fuel Cycle National Energy Savings 0.273
(Trillion Btu)................................
------------------------------------------------------------------------
Table VII.2--Cumulative Energy Savings for ASHRAE Standard 90.1-2019 vs.
ASHRAE Standard 90.1-2013
[30-year analysis period]
------------------------------------------------------------------------
Results--ASHRAE 90.1-
2019 compared to ASHRAE
Category 90.1-2013 baseline
(quads)
------------------------------------------------------------------------
Cumulative Site National Energy Savings (quads) 0.049
Cumulative Source National Energy Savings 0.115
(quads).......................................
Cumulative Full Fuel Cycle National Energy 0.120
Savings (quads)...............................
------------------------------------------------------------------------
Table VII.3--Cumulative Lifetime Energy Savings for ASHRAE Standard 90.1-
2019 vs. ASHRAE Standard 90.1-2013
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Results--ASHRAE 90.1-
2019 compared to ASHRAE
Category 90.1-2013 baseline
(quads)
------------------------------------------------------------------------
Cumulative Lifetime Site National Energy 0.095
Savings (quads)...............................
Cumulative Lifetime Source National Energy 0.223
Savings (quads)...............................
Cumulative Lifetime Full Fuel Cycle National 0.232
Energy Savings (quads)........................
------------------------------------------------------------------------
Table VII.4--Cost-Effectiveness Results for ASHRAE Standard 90.1-2019
vs. ASHRAE Standard 90.1-2013
[2020$]
------------------------------------------------------------------------
Results--ASHRAE 90.1-2019 compared
Category to ASHRAE 90.1-2013 baseline
------------------------------------------------------------------------
Average LCC Net Savings (2020$).... $8.29/ft \2\.
Annual LCC Net Savings (2020$)..... $161.9 million.
First Year Energy Cost Savings $0.17/ft \2\.
(2020$).
Total First Year Energy Cost $3.4 million.
Savings (2020$).
Incremental First Cost (2020$)..... -$1.67/ft \2\.
Total Incremental First Cost -$32.7 million.
(2020$).
------------------------------------------------------------------------
Table VII.5--Summary of Monetized Economic Benefits and Costs
[Billion 2020$]
[2022-2051 plus 30-year lifetime]
------------------------------------------------------------------------
Billion $2020
------------------------------------------------------------------------
3% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings................ 1.86
[[Page 20290]]
Climate Benefits *............................. 0.38
Health Benefits **............................. 0.60
------------------------
Total Benefits [dagger].................... 2.84
Consumer Incremental Product Costs -0.64
[dagger][dagger]..............................
------------------------
Net Benefits............................... 3.48
------------------------------------------------------------------------
7% discount rate
------------------------------------------------------------------------
Consumer Operating Cost Savings................
Consumer Operating Cost Savings................ 0.65
Climate Benefits *............................. 0.38
Health Benefits **............................. 0.22
------------------------
Total Benefits [dagger].................... 1.25
Consumer Incremental Product Costs -0.41
[dagger][dagger]..............................
------------------------
Net Benefits............................... 1.66
------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal
new commercial and multi-family high-rise buildings built in 2022-
2051. These results include benefits to consumers which accrue after
2051 from the buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the
social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent
discount rates; 95th percentile at 3 percent discount rate). Together
these represent the social cost of greenhouse gases (SC-GHG). For
presentational purposes of this table, the climate benefits associated
with the average SC-GHG at a 3 percent discount rate are shown, but
the Department does not have a single central SC-GHG point estimate,
and it emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates. See section IV.B of this
document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX
and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health
benefits, but will continue to assess the ability to monetize other
effects such as health benefits from reductions in direct PM2.5
emissions. The health benefits are presented at real discount rates of
3 and 7 percent. See section IV.B of this document for more details.
[dagger] Total and net benefits include consumer operating cost savings
and benefits related to public health and climate. On March 16, 2022,
the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February
11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21-
cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order,
the preliminary injunction is no longer in effect, pending resolution
of the federal government's appeal of that injunction or a further
court order. Among other things, the preliminary injunction enjoined
the defendants in that case from ``adopting, employing, treating as
binding, or relying upon'' the interim estimates of the social cost of
greenhouse gases--which were issued by the Interagency Working Group
on the Social Cost of Greenhouse Gases on February 26, 2021--to
monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where
appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as
installation costs.
Table VII.6--Annualized Monetized Benefits, Costs, and Net Benefits
[Million 2020$]
[2022-2051 plus 30-year lifetime]
----------------------------------------------------------------------------------------------------------------
Million 2020$/year
Category -------------------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Consumer Operating Cost Savings............................... 94.9 52.5
Climate Benefits *............................................ 19.1 19.1
Health Benefits **............................................ 30.7 18.1
-------------------------------------------------
Total Benefits [dagger]................................... 144.8 89.7
Costs [dagger][dagger]........................................ -32.7 -32.7
-------------------------------------------------
Net Benefits.............................................. 177.5 122.4
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-
rise buildings built in 2022-2051. These results include benefits to consumers which accrue after 2051 from
the buildings constructed in 2022-2051.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane
(SC-CH4), and nitrous oxide (SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates;
95th percentile at 3 percent discount rate). Together these represent the social cost of greenhouse gases (SC-
GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a
3 percent discount rate are shown but the Department does not have a single central SC-GHG point estimate, and
it emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
See section IV.B of this document for more details.
** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing
(for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will
continue to assess the ability to monetize other effects such as health benefits from reductions in direct
PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See section IV.B
of this document for more details.
[[Page 20291]]
[dagger] Total and net benefits include consumer operating cost savings and benefits related to public health
and climate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of the federal government's appeal of that
injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in
that case from ``adopting, employing, treating as binding, or relying upon'' the interim estimates of the
social cost of greenhouse gases--which were issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its approach prior to the injunction and
present monetized benefits where appropriate and permissible under law.
[dagger][dagger] Costs include incremental equipment costs as well as installation costs.
B. Review Under the Administrative Procedure Act
This rule, which updates energy efficiency performance standards
for the design and construction of new Federal buildings, is a rule
relating to public property, and therefore is not subject to the
rulemaking requirements of the Administrative Procedure Act, including
the requirement to publish a notice of proposed rulemaking. (See 5
U.S.C. 553(a)(2)) Additionally, DOE notes that the determinations
regarding the increase in energy efficiency for commercial buildings
using ASHRAE Standard 90.1-2016 and 90.1-2019 in the context of State
building codes were subject to notice and comment. See 82 FR 34513
(July 25, 2017) for the preliminary determination and 83 FR 8463
(February 27, 2018) for the final determination on Standard 90.1-2016.
See 86 FR 20674 (April 21, 2021) for the preliminary determination and
86 FR 40543 (July 28, 2021) for the final determination on Standard
90.1-2019. The determinations made in the context of the State codes
are equally applicable in the context of Federal buildings. DOE finds
that providing notice and comment again in the context of Federal
buildings would therefore be unnecessary. (See 5 U.S.C. 553(b)(B)) The
fact that the voluntary consensus codes apply to Federal buildings as
opposed to the general building stock does not require a different
evaluation of energy efficiency and cost-effectiveness.
C. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the
preparation of an initial regulatory flexibility analysis for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by Executive Order 13272, ``Proper Consideration of Small Entities in
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published
procedures and policies on February 19, 2003, to ensure that the
potential impacts of its rules on small entities are properly
considered during the rulemaking process. 68 FR 7990. DOE has made its
procedures and policies available on the Office of General Counsel's
website (https://energy.gov/gc/office-general-counsel).
As noted previously, DOE has determined that a notice of proposed
rulemaking is not required by 5 U.S.C. 553 or any other law for
issuance of this rule. As such, the analytical requirements of the
Regulatory Flexibility Act do not apply. 5 U.S.C. 605(b).
D. Review Under the Paperwork Reduction Act of 1995
This rulemaking will impose no new information or record keeping
requirements. Accordingly, OMB clearance is not required under the
Paperwork Reduction Act. (44 U.S.C. 3501 et seq.)
E. Review Under the National Environmental Policy Act of 1969
DOE prepared an EA (DOE/EA-20165) entitled, ``Environmental
Assessment for Final Rule, 10 CFR part 433, `Baseline Energy Efficiency
Standards Update for New Federal Commercial and Multi-Family High-Rise
Residential Buildings' '',\38\ pursuant to the Council on Environmental
Quality's (CEQ's) 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).
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\38\ The EA and FONSI may be found in the docket for this
rulemaking and at www.energy.gov/nepa/doeea-2165-energy-efficiency-standards-new-federal-commercial-and-multi-family-high-rise.
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The EA addresses the possible incremental environmental effects
attributable to the application of the final rule. The only anticipated
impact would be a decrease in outdoor air pollutants resulting from
decreased fossil fuel burning for energy use in Federal buildings.
Therefore, DOE has issued a Finding of No Significant Impact (FONSI),
pursuant to NEPA, the regulations of the Council on Environmental
Quality (40 CFR parts 1500-1508), and DOE's regulations for compliance
with NEPA (10 CFR part 1021).
To identify the potential environmental impacts that may result
from implementing the final rule on new Federal commercial buildings,
DOE compared the requirements of the final rule updating energy
efficiency performance standard for Federal new commercial and multi-
family high rise residential buildings to ASHRAE Standard 90.1-2019
with the ``no-action alternative'' of using the current Federal
standards (ASHRAE Standard 90.1-2013). This comparison is identical to
that undertaken by DOE in its determinations of energy savings of those
standards and codes.
Accordingly, DOE concludes in the EA that new Federal buildings
designed and constructed to Standard 90.1-2019 will use less energy
than new Federal buildings designed and constructed to Standard 90.1-
2013 because Standard 90.1-2019 is more efficient than Standard 90.1-
2013. This decrease in energy usage translates to reduced emissions of
carbon dioxide (CO2), nitrogen oxides (NOX),
mercury (Hg), and methane (CH4) over the 30-year period
examined in the EA. As reported in the EA, cumulative emission
reductions for 30 years of construction and operation for Federal
buildings built during the analysis period (2022 through 2051) were
estimated at up to 4.5 million metric tons of CO2, up to 6.9
thousand tons of NOX, up to 0.01 tons of Hg, up to 33.5
thousand tons of CH4, up to 1.6 thousand tons of
SO2, and up to 0.04 thousand tons of N2O. In
conducting the net benefits analysis, DOE also calculated the energy
savings and associated emissions corresponding to the analysis period
plus the lifetime of the building to capture the full benefits stream
associated with Federal buildings constructed from 2022 through 2051.
For 30 years of construction and operation including building lifetime,
cumulative emission reductions were estimated at up to 8.4 million
metric tons of CO2, up to 13.1 thousand tons of
NOX, up to 0.02 tons of Hg, up to 64.5 thousand tons of
CH4, up to 3.0 thousand tons of SO2, and up to
0.08 thousand tons of N2O.
[[Page 20292]]
F. Review Under Executive Order 13132, ``Federalism''
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4,
1999), imposes certain requirements on agencies formulating and
implementing policies or regulations that preempt State law or that
have federalism implications. The Executive order requires agencies to
examine the constitutional and statutory authority supporting any
action that would limit the policymaking discretion of the States and
to carefully assess the necessity for such actions. The Executive order
also requires agencies to have an accountable process to ensure
meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.
On March 14, 2000, DOE published a statement of policy describing the
intergovernmental consultation process it will follow in the
development of such regulations. (See 65 FR 13735) DOE examined this
rule and determined that it does not preempt State law and does not
have a substantial direct effect on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government.
No further action is required by Executive Order 13132.
G. Review Under Executive Order 12988, ``Civil Justice Reform''
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Federal agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; and (3) provide a clear legal
standard for affected conduct, rather than a general standard and
promote simplification and burden reduction. Section 3(b) of Executive
Order 12988 specifically requires that executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect, if any; (2) clearly specifies any effect on
existing Federal law or regulation; (3) provides a clear legal standard
for affected conduct, while promoting simplification and burden
reduction; (4) specifies the retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. Section 3(c) of Executive Order 12988 requires
Executive agencies to review regulations in light of applicable
standards in section 3(a) and section 3(b) to determine whether they
are met or it is unreasonable to meet one or more of them. DOE has
completed the required review and determined that, to the extent
permitted by law, this rule meets the relevant standards of Executive
Order 12988.
H. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub.
L. 104-4) requires each Federal agency to assess the effects of Federal
regulatory actions on State, local, and tribal governments and the
private sector. For a proposed regulatory action likely to result in a
rule that may cause the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector of $100 million
or more in any one year (adjusted annually for inflation), section 202
of UMRA requires a Federal agency to publish a written statement that
estimates the resulting costs, benefits, and other effects on the
national economy. (2 U.S.C. 1532(a) and (b)) The UMRA also requires a
Federal agency to develop an effective process to permit timely input
by elected officers of State, local, and tribal governments on a
proposed ``significant intergovernmental mandate'' and requires an
agency plan for giving notice and opportunity for timely input to
potentially affected small governments before establishing any
requirements that might significantly or uniquely affect small
governments. On March 18, 1997, DOE published a statement of policy on
its process for intergovernmental consultation under UMRA. 62 FR 12820.
DOE's policy statement is also available at https://energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf. This final rule contains
neither an intergovernmental mandate nor a mandate that may result in
the expenditure of $100 million or more in any year by State, local,
and tribal governments, in the aggregate, or by the private sector, so
these requirements under the Unfunded Mandates Reform Act do not apply.
I. Review Under the Treasury and General Government Appropriations Act
of 1999
Section 654 of the Treasury and General Government Appropriations
Act of 1999 (Pub. L. 105-277) requires Federal agencies to issue a
Family Policymaking Assessment for any rule that may affect family
well-being. This final rule would not have any impact on the autonomy
or integrity of the family as an institution. Accordingly, DOE has
concluded that it is not necessary to prepare a Family Policymaking
Assessment.
J. Review Under Executive Order 12630, ``Governmental Actions and
Interference With Constitutionally Protected Property Rights''
DOE has determined, under Executive Order 12630, ``Governmental
Actions and Interference with Constitutionally Protected Property
Rights,'' 53 FR 8859 (March 18, 1988), that this rule would not result
in any takings which might require compensation under the Fifth
Amendment to the United States Constitution.
K. Review Under the Treasury and General Government Appropriations Act,
2001
Section 515 of the Treasury and General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note) provides for agencies to review most
disseminations of information to the public under guidelines
established by each agency pursuant to general guidelines issued by
OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002),
and DOE's guidelines were published at 67 FR 62446 (October 7, 2002).
Pursuant to OMB Memorandum M-19-15, Improving Implementation of the
Information Quality Act (April 24, 2019), DOE published updated
guidelines which are available at www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf. DOE
has reviewed this final rule under the OMB and DOE guidelines and has
concluded that it is consistent with applicable policies in those
guidelines.
L. Review Under Executive Order 13211, ``Actions Concerning Regulations
That Significantly Affect Energy Supply, Distribution, or Use''
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355
(May 22, 2001), requires Federal agencies to prepare and submit to the
Office of Information and Regulatory Affairs (OIRA) 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
[[Page 20293]]
(3) is designated by the Administrator of OIRA as a significant energy
action. For any proposed significant energy action, the agency must
give a detailed statement of any adverse effects on energy supply,
distribution, or use should the proposal be implemented, and of
reasonable alternatives to the action and their expected benefits on
energy supply, distribution, and use. DOE's EIA estimates that new
construction in the commercial sector will range from 1.91 billion
square feet per year in 2022 to 2.52 billion square feet per year in
2050.\39\ This rule is expected to incrementally reduce the energy
usage of approximately 19.54 million square feet of Federal commercial
and high-rise multi-family residential construction annually.\40\ Thus,
the rule represents approximately 1.17 percent of the expected annual
U.S. commercial construction in 2022, falling to approximately 0.89
percent in the year 2050. This final rule would not have a significant
adverse effect on the supply, distribution, or use of energy and,
therefore, is not a significant energy action. Accordingly, DOE has not
prepared a Statement of Energy Effects.
---------------------------------------------------------------------------
\39\ See Table A5 of the 2021 Annual Energy Outlook at
www.eia.gov/outlooks/aeo/excel/aeotab_5.xlsx.
\40\ See Regulatory Analysis Section A. Review Under Executive
Order 12866, ``Regulatory Planning and Review'' above for origin of
the 25.85 million square foot estimate.
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M. Review Under Section 32 of the Federal Energy Administration Act of
1974
Under section 301 of the Department of Energy Organization Act
(Pub. L. 95-91), DOE must comply with section 32 of the Federal Energy
Administration Act of 1974 (Pub. L. 93-275), as amended by the Federal
Energy Administration Authorization Act of 1977 (Pub. L. 95-70). (15
U.S.C. 788) Section 32 provides that where a proposed rule authorizes
or requires use of commercial standards, the final rule must inform the
public of the use and background of such standards. In addition,
section 32(c) requires DOE to consult with the U.S. Department of
Justice (DOJ) and the Federal Trade Commission (FTC) concerning the
impact of the commercial or industry standards on competition.
Although section 32 specifically refers to the proposed rule stage,
DOE is meeting these requirements at the final rule stage because there
was no proposed rule for this action. This final rule incorporates
testing methods contained in the following commercial standard: ANSI/
ASHRAE/IES Standard 90.1-2019, Energy Standard for Buildings Except
Low-Rise Residential Buildings, 2019, American Society of Heating
Refrigerating and Air-Conditioning Engineers, Inc., ISSN 1041-2336.
DOE has evaluated these standards and notes that ASHRAE Standard
90.1 Standard is developed under ANSI-approved consensus procedures and
is under continuous maintenance by a Standing Standard Project
Committee. ASHRAE has established a program for regular publication of
addenda, or revisions, including procedures for timely, documented,
consensus action on requested changes to ASHRAE Standard 90.1. ANSI
approved the final addendum for inclusion in the 2016 edition in August
2016 and in the 2019 edition in October 2019. Standard 90.1-2016 was
published in October 2016 and Standard 90.1-2019 was published in
October 2019. However, DOE is unable to conclude whether ASHRAE
Standard 90.1 fully complies with the requirements of section 32(b) of
the Federal Energy Administration Act (FEAA) (i.e., whether they were
developed in a manner that fully provides for public participation,
comment, and review). DOE has consulted with both the Attorney General
and the Chairman of the FTC about the impact on competition of using
the methods contained in these standards and has received no comments
objecting to their use.
N. Description of Materials Incorporated by Reference
In this final rule, DOE incorporates by reference ANSI/ASHRAE/IES
Standard 90.1-2019, Energy Standard for Buildings Except Low-Rise
Residential Buildings, (I-P Edition), 2019. This standard provides
minimum requirements for energy efficient designs for buildings except
for low-rise residential buildings. Copies of this standard are
available from ASHRAE, Inc., 180 Technology Parkway NW, Peachtree
Corners, GA 30092, (404) 636-8400, www.ashrae.org. ASHRAE provides a
free, online, read-only version of Standard 90.1-2019 available at
www.ashrae.org/technical-resources/standards-and-guidelines. Users must
scroll down to locate and click on Standard 90.1-2019 (IP).
The Director of the Federal Register previously approved ANSI/
ASHRAE/IES 90.1-2004, 2007, 2010, and 2013, Energy Standard for
Buildings Except Low-Rise Residential Buildings for incorporation by
reference in 10 CFR part 433.
VIII. Congressional Notification
As required by 5 U.S.C. 801, DOE will report to Congress on the
promulgation of this rule prior to its effective date. The report will
state that it has been determined that the rule is a ``major rule'' as
defined by 5 U.S.C. 804(2).
IX. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this final
rule.
List of Subjects in 10 CFR Part 433
Buildings and facilities, Energy conservation, Engineers, Federal
buildings and facilities, Housing, Incorporation by reference.
Signing Authority
This document of the DOE was signed on March 28, 2022, by Kelly J.
Speakes-Backman, Principal Deputy Assistant Secretary for Energy
Efficiency and Renewable Energy, pursuant to delegated authority from
the Secretary of Energy. That document with the original signature and
date is maintained by DOE. For administrative purposes only, and in
compliance with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of DOE. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on March 29, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
For the reasons set forth in the preamble, DOE amends chapter II
Subchapter D of title 10 of the Code of Federal Regulations as set
forth below:
PART 433--ENERGY EFFICIENCY STANDARDS FOR 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. Amend Sec. 433.2 by:
0
a. In the definition of ``ASHRAE Baseline Building 2004'', removing the
text ``ANSI/ASHRAE/IES Standard 90.1-2004, Energy Standard for
Buildings Except Low-Rise Residential Buildings, January 2004'' and
adding, in
[[Page 20294]]
its place, the text, ``ASHRAE 90.1-2004'';
0
b. In the definition of ``ASHRAE Baseline Building 2007'', removing the
text ``ANSI/ASHRAE/IES Standard 90.1-2007, Energy Standard for
Buildings Except Low-Rise Residential Buildings, December 2007'' and
adding, in its place, the text, ``ASHRAE 90.1-2007'';
0
c. In the definition of ``ASHRAE Baseline Building 2010'', removing the
text ``ANSI/ASHRAE/IES Standard 90.1-2010, Energy Standard for
Buildings Except Low-Rise Residential Buildings, 2010'' and adding, in
its place, the text, ``ASHRAE 90.1-2010'';
0
d. In the definition of ``ASHRAE Baseline Building 2013'', removing the
text ``ANSI/ASHRAE/IES Standard 90.1-2013, Energy Standard for
Buildings Except Low-Rise Residential Buildings, 2013'' and adding, in
its place, the text, ``ASHRAE 90.1-2013'';
0
e. Adding in alphabetical order the definition of ``ASHRAE Baseline
Building 2019''; and
0
f. Revising the definition of ``New Federal building''.
The addition and revision read as follows:
Sec. 433.2 Definitions.
* * * * *
ASHRAE Baseline Building 2019 means a building that is otherwise
identical to the proposed building but is designed to meet, but not
exceed, the energy efficiency specifications in ASHRAE 90.1-2019
(incorporated by reference, see Sec. 433.3).
* * * * *
New Federal building means any new building (including a complete
replacement of an existing building from the foundation up) to be
constructed by, or for the use of, any Federal agency. Such term shall
include new buildings (including a complete replacement of an existing
building from the foundation up) built for the purpose of being leased
by a Federal agency, and privatized military housing.
* * * * *
0
3. Amend Sec. 433.3 by:
0
a. Revising paragraph (a) and the introductory text of paragraph (b);
and
0
b. Adding paragraph (b)(5).
The revision and addition read as follows:
Sec. 433.3 Materials incorporated by reference.
(a) Certain material is incorporated by reference into this subpart
with the approval of the Director of the Federal Register in accordance
with 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other
than that specified in this section, DOE must publish a document in the
Federal Register and the material must be available to the public. All
approved material is available for inspection at DOE, and at the
National Archives and Records Administration (NARA). Contact DOE at:
The U.S. Department of Energy, Office of Energy Efficiency and
Renewable Energy, Building Technologies Program, Sixth Floor, 950
L'Enfant Plaza SW, Washington, DC 20024, (202) 586-9127,
[email protected], https://www.energy.gov/eere/buildings/building-technologies-office. For information on the availability of this
material at NARA, email: [email protected], or go to:
www.archives.gov/federal-register/cfr/ibr-locations.html. The material
may be obtained from the sources in the following paragraphs of this
section.
(b) ASHRAE. American Society of Heating Refrigerating and Air-
Conditioning Engineers, Inc., 180 Technology Parkway NW, Peachtree
Corners, GA 30092; (404) 636-8400; www.ashrae.org.
* * * * *
(5) ANSI/ASHRAE/IES 90.1-2019, (``ASHRAE 90.1-2019''), Energy
Standard for Buildings Except Low-Rise Residential Buildings, I-P
Edition, copyright 2019, IBR approved for Sec. Sec. 433.2, 433.100 and
433.101.
0
4. Amend Sec. 433.100 by:
0
a. Revising paragraph (a)(4) and adding paragraph (a)(5);
0
b. Removing paragraph (b);
0
c. Redesignating paragraph (c) as (b); and
0
d. Revising newly redesignated paragraph (b).
The revisions and addition read as follows:
Sec. 433.100 Energy efficiency performance standard.
(a) * * *
(4) All Federal agencies shall design new Federal buildings that
are commercial and multi-family high-rise residential buildings, for
which design for construction began on or after November 6, 2016, but
before April 7, 2023, to:
(i) Meet ASHRAE 90.1-2013, (incorporated by reference, see Sec.
433.3); and
(ii) If LCC effective, achieve energy consumption levels,
calculated consistent with paragraph (b) of this section, that are at
least 30 percent below the levels of the ASHRAE Baseline Building 2013.
(5) All Federal agencies shall design new Federal buildings that
are commercial and multi-family high-rise residential buildings, for
which design for construction began on or after April 7, 2023, to:
(i) Meet ASHRAE 90.1-2019, (incorporated by reference, see Sec.
433.3); and
(ii) If LCC effective, achieve energy consumption levels,
calculated consistent with paragraph (b) of this section, that are at
least 30 percent below the levels of the ASHRAE Baseline Building 2019.
(b) If a 30 percent reduction is not LCC effective, the design of
the proposed building shall be modified so as to achieve an energy
consumption level at or better than the maximum level of energy
efficiency that is LCC effective, but at a minimum complies with
paragraph (a) of this section.
0
5. Amend Sec. 433.101 by:
0
a. Revising paragraph (a)(4) and adding paragraph (a)(5); and
0
b. Revising paragraph (b).
The revisions and addition read as follows:
Sec. 433.101 Performance level determination.
(a) * * *
(4) For Federal buildings for which design for construction began
on or after November 6, 2016, but before April 7, 2023, each Federal
agency shall determine energy consumption levels for both the ASHRAE
Baseline Building 2013 and proposed building by using the Performance
Rating Method found in Appendix G of ASHRAE 90.1-2013 (incorporated by
reference, see Sec. 433.3), except the formula for calculating the
Performance Rating in Section G1.2 shall read as follows:
(i) Percentage improvement = 100 x ((Baseline building consumption-
Receptacle and process loads)-(Proposed building consumption-Receptacle
and process loads))/(Baseline building consumption-Receptacle and
process loads) (which simplifies as follows):
(ii) Percentage improvement = 100 x (Baseline building consumption-
Proposed building consumption)/(Baseline building consumption-
Receptacle and process loads).
(5) For Federal buildings for which design for construction began
on or after April 7, 2023, each Federal agency shall determine energy
consumption levels for both the ASHRAE Baseline Building 2019 and
proposed building by using the Performance Rating Method found in
Appendix G of ASHRAE 90.1-2019 (incorporated by reference, see Sec.
433.3). The formula for determining the percentage improvement shall be
as follows:
[[Page 20295]]
Percentage Improvement = 100 x (1-PCI/PCIt)
Where
PCI = Performance Cost Index calculated in accordance with Section
G1.2 of ASHRAE Standard 90.1-2019
PCIt = Performance Cost Index Target calculated by formula in
Section 4.2.1.1 of ASHRAE Standard 90.1-2019
(b) Energy consumption for the purposes of calculating the 30
percent savings requirements shall include the building envelope and
energy consuming systems normally specified as part of the building
design by ASHRAE Standard 90.1 such as space heating, space cooling,
ventilation, service water heating, and lighting, and all process and
receptacle loads, except for energy-intensive process loads that are
driven by mission and operational requirements, not necessarily
buildings, and not influenced by conventional building energy
conservation measures.
[FR Doc. 2022-06949 Filed 4-6-22; 8:45 am]
BILLING CODE 6450-01-P