Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings, 61693-61735 [2014-24151]

Download as PDF Vol. 79 Tuesday, No. 198 October 14, 2014 Part II Department of Energy mstockstill on DSK4VPTVN1PROD with PROPOSALS2 10 CFR Parts 433 and 435 Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings; Proposed Rule VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14OCP2.SGM 14OCP2 61694 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules DEPARTMENT OF ENERGY 10 CFR Parts 433 and 435 [Docket No. EERE–2010–BT–STD–0031] RIN 1904–AB96 Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Supplemental notice of proposed rulemaking. AGENCY: The Energy Conservation and Production Act (ECPA), as amended by the Energy Independence and Security Act of 2007, requires DOE to establish revised performance standards for the construction of new Federal buildings, including commercial buildings, multifamily high-rise residential buildings and low-rise residential buildings. On October 15, 2010, DOE issued a Notice of Proposed Rulemaking (NOPR) to establish regulations implementing the fossil fuel-generated energy provisions of the ECPA performance standards for Federal buildings. In response to the NOPR, DOE received a number of comments expressing concern and encouraging DOE to re-examine the proposed regulations. In response to these comments, DOE has identified additional areas for clarification and consideration that would benefit from further public comment. In this supplemental notice of proposed rulemaking (SNOPR), DOE responds to the comments received on the NOPR and identifies and seeks comment on additional approaches to the scope of the requirements in the context of major renovations, the potential use of renewable energy certificates for compliance, and a streamlined process for agencies to seek a downward adjustment from the required reduction levels, particularly for major renovations. DATES: Public comments on this supplemental proposed rule will be accepted until December 15, 2014. ADDRESSES: This rulemaking can be identified by docket number EERE– 2010–BT–STD–0031 and/or RIN number 1904–AB96. Docket: The docket is available for review at https://www.regulations.gov including Federal Register Notices, public meeting attendee lists, transcripts, comments and other supporting documents/materials. All documents in the docket are listed in the https://www.regulations.gov index. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 SUMMARY: VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 You may submit comments, identified by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: FossilFuelReduct-2010-STD0031@ee.doe.gov. Include EERE–2010– BT–STD–0031 and/or RIN 1904–AB96 in the subject line of the message. • Postal Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Program, Mailstop EE–2J, Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings, EERE–2010–BT–STD–0031 and/or RIN 1904–AB96, 1000 Independence Avenue SW., Washington, DC 20585– 0121. Telephone: (202) 586–9138. Please submit one signed paper original. Due to the potential delays in DOE’s receipt and processing of mail sent through the U.S. Postal Service, DOE encourages respondents to submit comments electronically to ensure timely receipt. • Hand Delivery/Courier: Brenda Edwards, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Program, EE–2J, 1000 Independence Avenue SW., Washington, DC 20585–0121. Instructions: All submissions must include the agency name and docket number or Regulatory Information Number (RIN) for this rulemaking. Docket: For access to the docket to read background documents or comments received by DOE, go to the U.S. Department of Energy, Forrestal Building, Room 5E–080 (Resource Room of the Federal Energy Management Program), 1000 Independence Avenue SW., Washington, DC, (202) 586–9127, between 9 a.m. and 4 p.m., Monday through Friday, except Federal holidays. Please call Brenda Edwards at (202) 586–2945 for additional information regarding visiting the Resource Room. FOR FURTHER INFORMATION CONTACT: For technical issues, contact Sarah Jensen, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Program, EE–5F, 1000 Independence Avenue SW., Washington, DC 20585–0121, (202) 287–6033, email: Sarah.Jensen@ ee.doe.gov. For legal issues, contact Ami Grace-Tardy, U.S. Department of Energy, Office of the General Counsel, Forrestal Building, GC–71, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586–5709, email: Ami.Grace-Tardy@hq.doe.gov. SUPPLEMENTARY INFORMATION: PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 Table of Contents I. Introduction A. Authority B. Background II. Summary of the Proposed Rule III. General Discussion and Response to Comments A. Overview B. Scope and Applicability of the Proposed Rule 1. Determining the $2.5 Million Threshold for Applicability of the Rule 2. Compliance Date of the Rule 3. Major Renovations 4. Multiple Buildings 5. Leased Buildings 6. Federal Buildings Overseas 7. Residential Buildings 8. Privatized Military Housing 9. Other C. Establishing and using the Baseline 1. CBECS and RECS Baselines 2. Climate Adjustment 3. Plug and Process Loads 4. Differentiate Between Fossil Fuels 5. Regional Fossil Fuel Factors 6. Marginal Source of Electricity 7. Residential Common Areas 8. Major Renovations 9. Other D. Methodology to Determine Compliance 1. Whole Building Simulation 2. Off-Site and On-Site Renewable Energy and Renewable Energy Certificates 3. Use of Source Energy 4. Fuel Conversion Efficiency 5. On-Site Energy Generation From Natural Gas 6. Additional Review 7. Other E. Petitions for Downward Adjustment 1. Technical Impracticability and Cost as a Basis for Downward Adjustment 2. Bundling of Petitions 3. DOE Review Process 4. Information Required in Petitions for New Construction 5. Downward Adjustments for Major Renovations 6. Make Information Publicly Available 7. Narrow the Use of Petitions 8. GSA Tenant Agencies 9. Other F. Impacts of the Rule 1. Cost Impacts 2. Other Impacts G. Guidance and Other Topics 1. Training 2. Verification and Monitoring IV. Reference Resources V. Procedural Issues and Regulatory Review I. Introduction A. Authority Section 305 of the Energy Conservation and Production Act (ECPA) established energy conservation requirements for Federal buildings. (42 U.S.C. 6834) Section 433(a) of the Energy Independence and Security Act of 2007 (Pub. L. 110–140) (EISA 2007) amended section 305 of ECPA and directed DOE to establish regulations that require fossil fuel-generated energy E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 consumption reductions for certain new Federal buildings and Federal buildings undergoing major renovations. (42 U.S.C. 6834(a)(3)(D)(i)) The fossil-fuel generated energy consumption reductions only apply to Federal buildings that: (1) Are ‘‘public buildings’’ (as defined in 40 U.S.C. 3301) 1 with respect to which the Administrator of General Services is required to transmit a prospectus to Congress under 40 U.S.C. 3307;2 or (2) those that cost at least $2,500,000 in costs adjusted annually for inflation. (42 U.S.C. 6834(a)(3)(D)(i)) For these buildings, Section 305 of ECPA, as amended by EISA 2007, mandates that the buildings be designed so that a building’s fossil fuel-generated energy consumption is reduced as compared with such energy consumption by a similar building in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from the DOE’s Energy Information Administration) by 55 percent beginning in fiscal year 2010, 65 percent beginning in fiscal year 2015, 80 percent beginning in fiscal year 2020, 90 percent beginning in fiscal year 2025, and 100 percent beginning in fiscal year 2030. (42 U.S.C. 6834(a)(3)(D)(i)(I)) 1 Under 40 U.S.C. 3301(5), ‘‘public building’’ is a building, whether for single or multitenant occupancy, and its grounds, approaches, and appurtenances, which is generally suitable for use as office or storage space or both by one or more Federal agencies or mixed-ownership Government corporations. ‘‘Public building’’ includes Federal office buildings, post offices, customhouses, courthouses, appraisers stores, border inspection facilities, warehouses, record centers, relocation facilities, telecommuting centers, similar Federal facilities, and any other buildings or construction projects the inclusion of which the President considers to be justified in the public interest. The definition does not include a building or construction project that is on the public domain (including that reserved for national forests and other purposes); that is on property of the Government in foreign countries; that is on Indian and native Eskimo property held in trust by the Government; that is on land used in connection with Federal programs for agricultural, recreational, and conservation purposes, including research in connection with the programs; that is on or used in connection with river, harbor, flood control, reclamation or power projects, for chemical manufacturing or development projects, or for nuclear production, research, or development projects; that is on or used in connection with housing and residential projects; that is on military installations (including any fort, camp, post, naval training station, airfield, proving ground, military supply depot, military school, or any similar facility of the Department of Defense); that is on installations of the Department of Veterans Affairs used for hospital or domiciliary purposes; or the exclusion of which the President considers to be justified in the public interest. 2 40 U.S.C. 3307 describes the minimum construction, alteration and lease costs that would trigger a prospectus to Congress. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 In addition, upon petition by an agency subject to the statutory requirements, ECPA, as amended by EISA 2007, permits DOE to adjust the applicable numeric reduction requirement downward with respect to a specific building, if the head of the agency designing the building certifies in writing that meeting such requirement would be technically impracticable in light of the agency’s specified functional needs for that building and DOE concurs with the agency’s conclusion. (42 U.S.C. 6834(a)(3)(D)(i)(II)) Such an adjustment does not apply to GSA. (42 U.S.C. 6834(a)(3)(D)(i)(II)) (In the remainder of today’s rulemaking, all references to ECPA refer to the statute as amended through EISA 2007.) B. Background This supplemental notice of proposed rulemaking amends certain portions of 10 CFR parts 433 and 435, the regulations governing energy efficiency in Federal buildings. The Notice of Proposed Rulemaking (NOPR) was published on October 15, 2010. 75 FR 63404. The public meeting was held on November 12, 2010, and public comments were accepted through December 14, 2010. DOE received a number of comments expressing concern and encouraging DOE to reexamine the proposed regulations.3 In response to these comments, DOE has identified additional areas for clarification and consideration that would benefit from further public comment. In this SNOPR, DOE responds to the comments received on the NOPR and identifies and seeks comment on additional approaches to the scope of the requirements in the context of major renovations, the potential use of renewable energy certificates for compliance, and a more streamlined process for agencies to seek a downward adjustment from the reduction levels. DOE is in the process of addressing other requirements for Federal buildings mandated in ECPA, as amended by section 433 of EISA. DOE published a proposed rule on sustainable design standards for new Federal buildings and major renovations on May 28, 2010 (75 FR 29933) (the ‘‘Sustainable Design NOPR’’), which also proposed to amend certain portions of 10 CFR parts 433 and 435. (Docket No. EE–RM/STD–02–112, RIN 1904–AC13) Elsewhere in this issue of the Federal Register, the green building certification portion of the 3 Complete contents of the docket folder may be found at https://www.regulations.gov/#!docketDetail; D=EERE-2010-BT-STD-0031. PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 61695 Sustainable Design NOPR is published as a final rule. DOE received a number of comments on the scope of the EISA 2007 amendments both in the context of this rulemaking and in response to the Sustainable Design NOPR. DOE addresses both sets of comments in today’s rulemaking. II. Summary of the Proposed Rule This SNOPR addresses requirements for new construction and major renovations of Federal commercial and high-rise residential buildings, as well as Federal low-rise residential buildings. The following is an overview of each section of today’s SNOPR, including any relevant changes from the proposal as provided in the October 15, 2010 NOPR. (75 FR 63404; ‘‘2010 Proposed Rule’’) A. Regulatory Scheme In this SNOPR, DOE is proposing to address the contents of Subpart B of both 10 CFR parts 433 and 435—the fossil fuel-generated energy consumption requirements. In addition, this rule proposes to amend the term ‘‘life-cycle costeffective’’ to tie the definition of lifecycle cost-effectiveness closer to the four life cycle cost methodologies set out in subpart A of 10 CFR part 436. B. Overall Basis for the Rulemaking The underlying requirements for this rulemaking are based on the requirements in Section 433 of EISA 2007. The statute requires that covered Federal buildings be designed so that the fossil fuel-generated energy consumption of the buildings is reduced, as compared with such energy consumption by a similar building in fiscal year 2003 (as measured by Commercial Buildings Energy Consumption Survey or Residential Energy Consumption Survey data from DOE’s Energy Information Administration), by the percentage specified in the following table: FISCAL YEAR PERCENTAGE REDUCTION 2010 2015 2020 2025 2030 ........................................................ ........................................................ ........................................................ ........................................................ ........................................................ 55 65 80 90 100 As discussed later in this document, DOE believes that the current energy efficiency requirements applicable to the design of new Federal buildings, when compared to the energy efficiency of the baseline buildings, would result in a substantial level of compliance with E:\FR\FM\14OCP2.SGM 14OCP2 61696 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules the 55 percent and 65 percent reduction levels. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 C. Covered Buildings The proposed rule would apply to certain new Federal buildings, and major renovations to Federal buildings, as specified in section 433 of EISA 2007. By statute, the term ‘‘Federal building’’ means any building to be constructed by, or for the use of, any Federal agency, including buildings built for the purpose of being leased by a Federal agency, and privatized military housing. (42 U.S.C. 6832(6)) This proposed rule only would apply to new Federal buildings and major renovations to Federal buildings covered by EISA 2007. Federal buildings covered by EISA 2007 include new Federal buildings, or major renovations to Federal buildings, that are also: (1) Public buildings, as defined in 40 U.S.C. 3301 for which a transmittal of a prospectus to Congress is required under 40 U.S.C. 3307; or (2) Federal buildings for which the construction cost or major renovation cost is at least $2,500,000 (2007 dollars, adjusted for inflation). This subset of buildings and major renovations will be referred to as EISA-covered buildings in this SNOPR. D. Definitions This rulemaking contains definitions for ‘‘combined heat and power (CHP) system,’’ ‘‘district energy system,’’ ‘‘fiscal year,’’ ‘‘major renovation,’’ ‘‘power purchase agreement (PPA),’’ ‘‘proposed building,’’ and ‘‘renewable energy certificate.’’ This rulemaking also proposes to define 16 categories of commercial buildings and one category of multifamily high-rise residential buildings in 10 CFR part 433 and one category of low-rise residential buildings in 10 CFR part 435. The 16 categories of commercial buildings proposed are education, food sales, food service, health care (inpatient), health care (outpatient), laboratory, lodging, mercantile (enclosed and strip shopping malls), office, public assembly, public order and safety, religious worship, retail (other than mall), service, and warehouse and storage. Many of these commercial building categories are further divided into building types. The single category of low-rise residential buildings is divided into five building/ activity types: manufactured homes, multi-family in 2–4 unit buildings, multi-family in 5 or more unit buildings, single-family attached, and single-family detached. These building categories and building types represent the high-level principal building VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 activity and low-level principle building activity categories in the 2003 Commercial Building Energy Consumption Survey (CBECS).4 E. Fossil Fuel-Generated Energy Consumption Requirements For buildings for which design for construction begins in the fiscal years 2013 to 2029, tables of the proposed maximum allowable fossil fuelgenerated energy consumption by building type and climate zone are provided. The proposed values in the tables come from DOE’s Energy Information Administration (EIA) CBECS (for commercial buildings) and RECS (for multi-family high-rise and low-rise residential buildings), both of which are converted from site energy consumption to source energy consumption. The building types in the tables in Appendix A to this proposed rule are subsets of the building categories discussed above. The CBECS and RECS data was parsed into the 16 climate zones used in the current Federal baseline standards for commercial and multi-family highrise residential buildings, which rely on ANSI/ASHRAE/IESNA Standard 90.1. For buildings that combine two or more building types, area-weighted averaging by square footage for each building type would be used to calculate the maximum allowable fossil fuel-generated energy consumption of the combined building. For building types dominated by process loads, as defined in 10 CFR 433.2, and that are not listed in CBECS, the regulations would require the use of the CBECS building type that most closely matches the building without the process load and then accounting for the process load in the calculation. For these buildings, process loads would be accounted for, but are not subject to the percentage reductions in fossil fuel-generated energy consumption required for the building related loads. For major renovations that are less than whole building renovations (system or component level retrofits) DOE is proposing that the maximum allowable fossil fuel-generated energy consumption in fiscal years 2013 through 2029 be based on a percentage of the whole building energy consumption represented by the renovated system or component. For buildings for which design for construction begins in fiscal year 2030 or beyond, the fossil fuel-generated 4 The CBECS principle building types and subcategories are described at https://www.eia.gov/ consumption/commercial/building-typedefinitions.cfm. This rulemaking is based on the subcategories shown in this link. PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 energy consumption of the building would be required to be zero for all building types and climate zones, based on the calculation established in the regulations. F. Fossil Fuel-Generated Energy Consumption Determination To determine compliance with the fossil fuel reductions, agencies would be required to estimate the fossil fuelgenerated energy consumption of their proposed building design and compare that estimate to the allowable fiscal year percentage reduction target. DOE has proposed a calculation to make this estimated fossil fuel-generated energy consumption for the proposed building. Fundamentally, the calculation would add the fossil fuel component of the electricity used by the building to the direct fossil fuels used by the building. To calculate the fossil fuel component of the electricity used by the building, agencies would be required to first estimate the amount of electricity used by the building in accordance with the Performance Rating Method in Appendix G of ASHRAE Standard 90.1– 2010. Any electricity produced from a renewable energy or CHP system would not count towards the site electricity consumption in the baseline or the current calculated level. This figure would then be multiplied by the fossil fuel generation factor (calculated at 0.71 for the 2003 base year and also for 2012, the latest year of data available from EIA) to account for the percentage of electricity in the U.S. that is generated from fossil fuel.5 FEMP will publish updates to the fossil fuel generation factor annually on the FEMP Web site 6 so that agencies can use the most recent value in their calculations. The adjusted site electricity estimate would then be converted to source electricity by dividing it by the national average electricity source energy factor of 0.316 to account for fuel conversion and transmission and distribution losses. To this would be added the direct fossil fuel consumption for fuels other than electricity, adjusted for distribution and other losses that occur between delivery to the fuel provider and final delivery to 5 The fossil fuel generation factor of 0.71 is derived from Table 3.2.A of the Energy Information Administration (EIA) 2012 Electric Power Annual Report (https://www.eia.gov/electricity/annual/html/ epa_03_02_a.html). Specifically, the number is developed by summing the annual electricity produced by coal, petroleum liquids, petroleum coke, natural gas, and other gas and then dividing the sum by the total electricity produced. 0.71 is the value of this factor in 2003 and in 2012, but the value has changed over time and is expected to vary in the future as new sources of renewable energy come online. 6 https://energy.gov/eere/femp/federal-energymanagement-program. E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 the site with the other fuels source energy multiplier. The other fuels energy source multiplier would not include losses associated with the production, harvesting, refining, or transportation of bulk fuels. The result would then be divided by the floor area of the building and converted to thousands of British thermal units per square foot (kBtu/sq.ft.). For major renovations that are less than whole building renovations (system or component level retrofits) DOE proposes to base the subject fossil fuel-generated energy consumption on the system or component as retrofitted. Electricity produced from renewable energy would qualify as a deduction to the extent that it represents new electric generating capacity or a new renewable energy obligation on the part of the agency, and not a reassignment of existing capacity or obligations. The regulations would establish criteria for on-site renewable electricity generation and off-site renewable electricity generation (including generation represented by Renewable Energy Certificates) to help clarify these terms and the limits on how this generation may be used as a deduction from the proposed building electricity consumption. DOE has also proposed a clarification as to how electricity associated with district heating or cooling systems, district chilled water, and CHP systems would be treated. G. Petitions for Downward Adjustment Under the provision of Section 433 of EISA 2007 and as proposed, agencies other than GSA (but including GSAtenant agencies with significant control over building design) would be able to petition DOE for an adjustment to the fossil fuel requirement with respect to a specific building if meeting the requirement is technically impracticable in light of the agency’s functional needs for the building. This proposed rule provides a list of what information would be required to be included in a petition for a downward adjust for a new building. This includes a description of the building and associated components and equipment, an explanation of why compliance with the requirements is technically impracticable in light of the functional needs of the building, a demonstration that all cost-effective energy efficiency and on-site renewable energy measures were included in the building design, and a description of measures that were evaluated but rejected. As proposed, the Director of the Federal Energy Management Program would review the petition and make a decision on the petition within 90 days of submittal. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 Additionally, this rulemaking proposes separate, streamlined downward adjustment processes for major renovations that are whole building renovations and for major renovations that are system or component level retrofits. The streamlined processes recognize the constraints on compliance inherent with major renovations, e.g., building site and orientation cannot be changed and configuration of the building shell is likely difficult, if not technically impracticable, to adjust. Under DOE’s proposal, upon application, a Federal agency with a major renovation that is a whole building renovation would receive a downward adjustment equal to the energy efficiency level that would be required under the Federal building energy efficiency standards were the building a new building (i.e., the ASHRAE 90.1 and IECC requirements applicable to commercial and residential new Federal buildings, respectively). Upon application, a major renovation that is limited to a system or component level retrofit would receive a downward adjustment equal to the energy efficiency level that would be achieved through the use of products that represent a level of energy efficiency that is life-cycle cost-effective if such products are commercially available. This would be demonstrated through the use of ENERGY STAR or FEMP-designated products, or products that meet the applicable prescriptive requirements under ASHRAE 90.1 or the IECC. H. Summary of the Differences Between the 2010 Proposed Rule and This Proposed Rule In this proposed rule, the Department makes a number of substantial changes from the 2010 proposed rule. The changes apply to both 10 CFR part 433 and 10 CFR part 435 unless otherwise noted. Details of these changes with a discussion of each are described in Section III. This proposed rule would: • Add definitions for combined heat and power (CHP) system, proposed building, proposed building site electricity consumption, direct fossil fuel consumption of proposed building, district energy system, electricity source energy factor, fiscal year, floor area, fossil fuel generation factor, other fuels source energy multiplier, power purchase agreement (PPA), renewable energy certificates and renewable energy and CHP electricity deduction. • Delete definitions for fossil fuel, fossil fuel consumption for electricity generation, and primary electrical energy consumption. PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 61697 • Amend definitions for direct fossil fuel consumption, district energy system, electricity source energy factor, fossil fuel generation factor, and major renovation. • Clarify applicability of the rule to major renovations. • Clarify applicability of the rule to leased facilities. • Replace the proposed maximum allowable fossil fuel-generated energy consumption tables with new tables adjusted for each of DOE’s 16 climate zones and covering additional commercial building types. • Consider an approach to determine required fossil fuel-generated energy consumption levels for major renovations that are limited to system or component level retrofits. • Delete the Performance Rating Method in Appendix G of ASHRAE Standard 90–1.2004 and the IECC Simulated Performance Alternative as the means to calculate a baseline for building types not listed in the Commercial Buildings Energy Consumption Survey (CBECS) and the Residential Energy Consumption Survey (RECS), respectively. The expansion of building types would eliminate the need to develop alternative baselines. • Include an alternative compliance method for buildings with process loads that are not included in CBECS and RECS. Clarifies that process loads of building types not included in CBECS are not subject to the fossil fuel reductions. • Clarify performance level determination. Modify the calculation methodology and specify the electricity source factor and the fossil fuel generation factor to be used. Add a source energy multiplier for other fuels. • Specify what qualifies as a renewable energy and CHP deduction, including renewable energy produced off-site by the agency, renewable energy acquired pursuant to a power purchase agreement, Renewable Energy Certificates and a pro-rated share of the electricity produced from a CHP system. Specify that renewable energy production must be additive, that it must be tracked, and that the renewable energy attributes must be retained. • Clarify how district heating and cooling systems and combined heat and power systems are to be considered in determining compliance with the fossil fuel reductions. • Move the discussion of petitions for downward adjustment into its own subsection. • Allow GSA-tenant agencies to submit a petition for downward adjustment. E:\FR\FM\14OCP2.SGM 14OCP2 61698 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules • Add information to be included in petitions for downward adjustment for new buildings, including a demonstration that all energy efficiency measures and on-site renewable energy measures that are life-cycle costeffective have been included in the design; a description of technologies that were evaluated and rejected, including a justification for why they were rejected; and a description of the building and building energy-related features. • Provide an address to which petitions must be submitted and clarify that DOE would respond to petitions within 90 days. • Provide streamlined processes for Federal agencies to petition for a downward adjustment for major renovations. III. General Discussion and Response to Comments mstockstill on DSK4VPTVN1PROD with PROPOSALS2 A. Overview DOE received comments from 22 different entities. In addition, 10,677 form letters were received in a campaign coordinated by Earthjustice, some of which included unique comments (hereinafter referred to collectively as ‘‘Form Letters.’’) The comments were analyzed and categorized into six major categories: Applicability, Baseline, Methodology, Impacts, Petition for Downward Adjustment, and Guidance. Each of these major categories was subdivided into at least four subcategories, leading to the final comment categorization shown below. Applicability: costs to determine $2.5 million threshold; the effective date of the rule; definition of major renovations; applicability to single or multiple buildings; treatment of leased buildings and mixed use buildings; Federal buildings overseas; residential building categories; privatized military housing; coordination with the DOE rulemaking on sustainable design practices; and other. Baseline: CBECS and RECS baseline; climate adjustment; whole building simulation; buildings with energyintensive process loads not covered in CBECS and RECS; plug and process loads; differentiation between fossil fuels; differentiation of electric power mix by region; using the marginal source of electricity; treatment of residential common areas; and other. Methodology: additional rounds of review of the rule; off-site renewable energy; source versus site energy; onsite energy generation; fuel conversion efficiency; and other. Impacts: cost impacts and other. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 Petition for downward adjustment: bundling of petitions; costs as grounds for a petition; DOE review process; information in petitions; public availability of petitions; stringency of petition requirements; GSA-tenant agencies; and consideration of technical impracticability. Guidance: training and verification and monitoring. Most of the issues are the same for both commercial buildings (including multi-family residential buildings four stories or more) and residential buildings. Therefore, the discussion below applies to both building categories unless otherwise noted. B. Scope and Applicability of the Proposed Rule This section discusses the scope, or applicability, of the rule as proposed in response to comments received to date. This section provides preliminary responses related to: (1) What costs should be considered when calculating whether a construction project meets the $2.5 million threshold in EISA 2007; (2) when the rule goes into effect; and (3) which new construction and major renovation projects are covered by today’s rule. 1. Determining the $2.5 Million Threshold for Applicability of the Rule As noted above, the proposed rule would apply to new Federal buildings and major renovations to Federal buildings that are: (1) ‘‘public buildings’’ as defined by 40 U.S.C. 3301 for which a prospectus to Congress is required under 40 U.S.C. 3307; or (2) buildings with construction or renovation costs of at least $2.5 million in costs adjusted annually for inflation. (42 U.S.C. 6834(a)(3)(D)(i)) (These buildings are collectively referred to as ‘‘EISA-covered buildings’’ in this SNOPR.) DOE notes that the ECPA definition of ‘‘Federal building’’ was revised by EISA 2007. DOE is addresses this definition and the regulatory definition of ‘‘new Federal building’’ in this rulemaking. ECPA, as amended, defines ‘‘Federal building’’ to mean any building to be constructed by, or for the use of, any Federal agency including buildings built for the purpose of being leased by a Federal agency, and privatized military housing. (42 U.S.C. 6832(6)) DOE requested comments in the NOPR specifically on the definition of construction costs to determine which buildings meet the $2.5 million threshold and would be subject to the fossil fuel reduction requirements. DOE noted that construction costs generally include design, permitting, construction PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 (materials and labor), and commissioning costs, but that land and legal costs generally would not be included. 75 FR 63406. The American Gas Association (AGA) and the Department of Health & Human Services-Indian Health Service-Office of Environmental Health, Division of Engineering Services (DHHS–IHS– OEHE) agreed with the proposed definition. (AGA, No. 16 at p. 4; 7 DHHS, No. 24 at p. 1) The Edison Electric Institute (EEI) commented that the land and legal costs could be very high, and that all costs should be considered in any analysis. (EEI, No. 10 at p. 2) DOE preliminarily has decided that land and legal costs would not be included when determining the $2.5 million threshold. Legal costs are generally part of overhead costs, not construction costs. Concerning land costs, many new Federal buildings are built on land already owned by the Federal government. Moreover, it would be very challenging for agencies to determine the value of the land in these cases where there is no recent land purchase. Not including land costs for new Federal buildings in the threshold calculation would be consistent with the threshold calculation for major renovations, for which land costs are not a concern. In addition to comments specifically about land and legal costs, AGA and the National Propane Gas Association (NPGA) both questioned whether the cost of compliance with the fossil fuel consumption reductions would be included when determining whether the $2.5 million applicability threshold is met. (AGA, No. 17 at p. 6; NPGA, No. 23 at p. 3) NPGA also expressed concern that the threshold is too low. (NPGA, No. 23 at p. 3) DOE believes that it could be difficult to separate the costs of complying with the requirements of this rule from other design and construction costs. Conversely, it may be difficult to calculate the cost of a project including the costs to comply with the fossil fuel reduction requirements in those instances in which an agency would be seeking a downward adjustment. DOE anticipates that design and constructions costs for most new Federal buildings, and many 7 Notations of this form appear throughout this document and identify statements made in written comments or at public hearings that DOE has received and has included in the docket for this rulemaking. For example, ‘‘AGA, No. 16 at p. 4’’ refers to a comment: (1) From the American Gas Association; (2) in document number 16 in the docket of this rulemaking; and (3) appearing on page 4 of the submission. E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 renovations to Federal buildings, will exceed $2.5 million. Therefore, DOE proposes that the $2.5 million threshold does not include the cost of complying with the reductions and requests comment on this proposal. 2. Compliance Date of the Rule The NOPR stated that the requirements would apply to all eligible buildings for which design for construction began at least one year after publication of the final rule. 75 FR 63415. The Department of Defense-Air Force (DOD–AF) asked that the rule apply to projects programmed after the date the rule is final. (DOD–AF, No. 25C at p. 3) The majority of the comments on this issue suggested not delaying the rule. The Natural Resources Defense Council (NRDC) and the Form Letters stated that the rule should be finalized and implemented immediately, and AGA commented that the target reductions should be promulgated as soon as administratively practicable. (NRDC, No. 14 at pp. 13–14; Form letter, No. 29 at p. 1; AGA, No. 16 at p. 2) NRDC commented that the rule is already late, and recommended that ‘‘design for construction’’ be interpreted to mean the initiation of the schematic design phase. (NRDC, No. 14 at pp. 13– 14) NRDC also commented that DOE should interpret the fossil fuelgenerated reduction tables in EISA 2007 to apply to the date of initial occupancy rather than the date that design begins. (NRDC, No. 14 at p. 15) DOE proposes to retain the compliance date, tied to the design of the building, as proposed in the NOPR. Federal agencies are familiar with this date as it is consistent with the compliance date that DOE has used for baseline Federal building energy efficiency standards at 10 CFR parts 433 and 435 for several years. Under 10 CFR parts 433 and 435, ‘‘design for construction’’ means the stage when the energy efficiency and sustainability details (such as insulation levels, HVAC (heating, ventilating, and airconditioning) systems, water-using systems, etc.) are either explicitly determined or implicitly included in a project cost specification. This proposed rule would add a closely related definition of ‘‘proposed building’’ to tie the ‘‘design for construction’’ definition to the fossil fuel-generated energy consumption determination equation in the rule. A proposed building would be the design for construction of a new Federal commercial, multi-family highrise residential building, or low-rise residential building, or major renovation to such a building, proposed for construction. This definition was not VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 proposed in the NOPR. DOE intends that the addition of this definition would help clarify terms in the fossil fuel-generated energy consumption determination equation. 3. Major Renovations ECPA requires that fossil fuel reductions be implemented in ‘‘major renovations’’ to EISA-covered buildings. The Sustainable Design NOPR would define major renovation to include changes to a building that provide significant opportunities for substantial improvement in energy efficiency and renovations of any kind with costs that exceed 25 percent of the replacement value of the building, and requested comments on the definition. 75 FR 29942. Because DOE had assigned the definition to the Sustainable Design Rule with the expectation that it would serve for both rules, DOE did not include the definition in the NOPR for this rule. However, this supplemental proposed fossil fuel-generated reduction rule is now being published prior to a final Sustainable Design rule, so DOE has modified the major renovation definition proposed in the Sustainable Design rule to align more closely with today’s fossil fuel-generated reduction supplemental proposed rule. Nonetheless, DOE received several comments related to major renovations for this rulemaking. NRDC commented that the scope of the rule should be broadened to apply to all new Federal buildings in order to meet the requirements of EISA 2007. (NRDC, No. 14 at p. 2) The American Public Gas Association (APGA) commented that the 25 percent threshold amount is too low. (APGA, No. 17 at p. 2) Both the Department of Defense-Navy (DOD–N) and DOD–AF recommended that DOE limit the rule to major renovations that cost 50 percent or more of the building replacement value, as that is the definition they use internally for their facilities. (DOD–N, No. 25B at p. 11; DOD–AF, No. 25C at p. 5) DOE also received two comments about renovations spanning more than one year. NRDC commented that DOE must define ‘‘construction project costs’’ to be the total planned or budgeted project costs for the renovation, irrespective of whether the project spans more than one fiscal year or whether the agency has yet to receive full funding. (NRDC, No. 14 at p. 5) APGA commented that by not including renovation activities that potentially could occur in future fiscal years, that energy saving capitalexpenditure renovations will be deferred to future fiscal years and could end up producing a negative net energy and greenhouse gas emissions return for PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 61699 renovation dollars expended. (APGA, No. 17 at p. 6) Based on the comments received, DOE is proposing to not include the 25 percent cost limit in the definition of ‘‘major renovation.’’ Regarding the issue of renovating a Federal building in phases over more than one year, the applicability of the requirements are again tied to the design for construction. If the cost of the design for construction, although performed in different phases, would trigger application of the fossil fuel requirements and the phases are known in advance, the fossil fuel requirements would apply. The construction phases should be planned such that the fossil fuel reductions are achieved by the time the entire project is complete. DOE proposes to clarify how the requirements would be applied to portions of a building or individual systems being renovated as part of a major renovation. DOE does not intend to require Federal agencies to meet the fossil fuel-generated reduction requirements for an entire building when an agency renovation is limited to system or component level retrofits. DOE proposes that the fossil fuel reduction requirements apply only to the fossil fuel consumption associated with the portions of the building or building systems that are being renovated and only to the extent that the scope of the renovation provides an opportunity for compliance with the applicable fossil fuel-generated energy consumption reduction requirements. This addition to the regulatory language would direct Federal agencies to determine whether the extent of the renovation allows for compliance with the requirements. For example, a renovation that overhauls a major energy-consuming system (e.g., lighting, HVAC, envelope, etc.) is likely a major renovation subject to today’s requirements because the renovation likely allows for compliance with the rule. Additionally, DOE proposes to distinguish between a major renovation that is a whole building renovation, and a major renovation that is limited to a system or component level retrofit. As reflected in the comments received, DOE acknowledges that it would often be technically impracticable in light of an agency’s specified functional needs to meet the requirements of today’s rule during a major renovation. A major renovation could range from what is essentially a ‘‘gut rehab’’ or total replacement of all building systems without replacement of the building structure itself to a replacement of a single system or piece of equipment to replacement of several E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 61700 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules systems in a building. DOE believes that given the $2.5 million or ‘‘public building’’ threshold, the fossil fuelgenerated energy consumption requirement will primarily apply to Federal commercial buildings. The Department notes, however, that the rule could apply to certain multi-family housing that costs at least $2.5 million that is built by or for the use of any Federal agency, including buildings built for the purpose of being leased by a Federal agency and privatized military housing. With a complete whole building renovation, the building is stripped down to its structural elements and all new systems (including envelope, lighting, HVAC, and water heating systems) are installed. Generally, the designer of the renovation has less flexibility in design than the designer of a new building. There are also limitations on whole building renovations that may not be present with new construction. The geometry, orientation, and location of the building structure on the building lot are likely to be fixed. As noted, a whole building renovation is one in which a building is gutted to the level of its structural elements. The structural elements of the building should not have a major impact on the fossil fuel-generated energy consumption of the building. The fossil fuel reduction baseline and requirements derived from EIA’s CBECS, www.eia.doe.gov/emeu/cbecs, relate to entire building fossil fuelgenerated energy consumption, not the fossil fuel consumption of individual systems. The level of fossil fuel consumption impacted through a whole building renovation is comparable to that consumption proposed in the appendices to this proposed rule; i.e., both the subject energy consumption and the maximum permitted amount of energy consumption are at the whole building level. Therefore DOE proposes that the requirements and methodologies applicable to new construction would be applicable to major renovations that are whole building renovations. Major renovations that are limited to system or component level retrofits, have additional practical limitations for reducing fossil fuel-generated energy consumption. Based on the DOE Buildings Energy Databook, DOE has estimated the contribution of major energy related systems to a commercial building’s energy use for primary energy.8 8 Based on Table 3.1.4 of the DOE Buildings Energy Databook (https://buildingsdatabook.eere. energy.gov/TableView.aspx?table=3.1.4). VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 TABLE III.1—CONTRIBUTION OF ENERGY USE BY MAJOR SYSTEMS Percent Lighting ......................................... Space Heating .............................. Space Cooling .............................. Ventilation ..................................... Refrigeration ................................. Electronics .................................... Water Heating ............................... Computers .................................... Cooking ......................................... Other ............................................. Adjust to SEDS * ........................... 20 16 15 9 7 4 4 4 1 15 5 Total .......................................... 100 * SEDS (States Energy Data System) is used by the U.S. Energy Information Administration to resolve discrepancies between data sources. There have been improvements in the efficiencies of the systems and components as compared to that which was present in the buildings reported under the 2003 CBECS and 2005 RECS databases.9 A comparison of equipment efficiency changes for chillers and boilers (two pieces of equipment likely to be involved in a major renovation) from the original 1975 ASHRAE Standard 90–75, Energy Conservation in New Building Design, to the present FEMP-designated efficiency requirements for these pieces of equipment showed cooling end-use savings of up to 34 percent and heating end-use savings of up to 11 percent.10 The same analysis report shows a similar comparison for lighting indicated a potential savings of up to 52 percent of the lighting load if lighting power density requirements from ASHRAE 90.1–2010 were compared with those found in ASHRAE 90A– 1980. However, many Federal buildings have likely already undergone some lighting renovation, so it may be unlikely that a Federal building still has a lighting system based on 1980 standards. Therefore, even if the subject energy use is limited to the energy use of the retrofitted system or component, the improvements in energy efficiency as compared to the systems and components in the typical CBECS building are not sufficient to meet the required reductions. If the impact of the efficiency improvements between current systems and components and those represented in CBECS is 9 See discussion below in Section C. Establishing and Using the Baseline. 10 See Simulation Analyses in Support of DOE’s Fossil Fuel Rule for Single Component Equipment and Lighting Replacements by M Halverson and W Wang of Pacific Northwest National Laboratory at https://www.pnl.gov/main/publications/external/ technical_reports/PNNL-22887.pdf. PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 considered in the whole building context, a typical commercial building would realize whole building fossil fuel savings of 3 percent for cooling, 2 percent for heating, and 7.5 percent for lighting. For these reasons, for major renovations that are less than whole building renovations (system or component level retrofits) DOE is proposing establishing the maximum allowable energy use in fiscal years 2013 through 2029 based on the percentage of whole building energy consumption represented by the retrofitted system or component. The applicable value from the appendices in today’s rule would be multiplied by this percentage to arrive at the maximum allowable energy use of the retrofitted system or component. DOE requests comment on whether further direction would be required on how to distinguish between a major renovation that is a whole building renovation and one that is a system or component level retrofit, and requests comment on how such a distinction could be made. To further address issues related to major renovations, while ensuring that a fossil fuel-generated energy reduction is attained during a renovation, today’s rulemaking would require both that Federal agencies achieve specified energy efficiency levels before applying off-site renewable energy generation and before petitioning for a downward adjustment. Again, the proposed rule would distinguish between whole building renovations and system and component level retrofits. These changes are described further in the ‘‘Off-Site and On-Site Renewable Energy and Renewable Energy Certificates’’ and ‘‘Downward Adjustments for Major Renovations’’ sections. 4. Multiple Buildings DOE received one comment from DOD–AF asking whether the $2.5 million threshold for applicability of the rule would apply to individual buildings or to projects which may have two or more buildings. (DOD–AF, No. 25C at p. 2) DOE has preliminarily determined that the $2.5 million threshold should apply to individual buildings to determine if they are covered buildings under this rule. The statute mandates that the requirements apply to ‘‘buildings,’’ not ‘‘projects’’ or ‘‘developments.’’ 5. Leased Buildings EISA 2007 modified the ECPA definition of ‘‘Federal buildings’’ to include any building to be constructed by, or for the use of, any Federal agency. E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 This term includes buildings built for the purpose of being leased by a Federal agency and privatized military housing. (42 U.S.C. 6832(6)) In addition, the NOPR limited application of the rule to renovations of leased buildings to only those renovations for which a Federal agency has significant control over the renovation design. 75 FR 63405. NRDC commented that there is a disconnect between the rule scope and the ECPA definition, which NRDC believes does not permit the exclusion of buildings that have been built for the purpose of being leased by a Federal agency. (NRDC, No. 14 at pp. 4–5) The U.S. Army Corps of Engineers-North Atlantic Division (NAD) commented that it seemed more appropriate to cover Federally leased buildings via the existing EISA 2007 section 435 rules, which require new Federal agency leases to be for ENERGY STAR labeled buildings, since existing buildings will be difficult to retrofit to meet these fossil fuel reductions. (NAD, No. 19 at p. 2) Department of Defense-Office of Under Secretary of Defense (DOD– OUSOD) recommended against applying the rule to any building whose design is not completely under the control of Federal agencies, and suggested that the rule should just state this principle and allow the agencies to apply their own judgment. (DOD–OUSOD, No. 25A at p. 1) EEI asked if there would be a minimum lease period. (EEI, No. 10 at p. 2) DOE preliminarily has decided to remove the ‘‘significant control’’ provision for leased buildings covered under today’s rule because the ECPA definition of ‘‘Federal building’’ makes clear that the rule applies only to buildings built specifically for the Federal government. Significant control, therefore, is implicit in the definition. DOE is aware that compliance with today’s rule for small buildings or spaces that are leased for relatively short periods of time may not be possible. DOE also recognizes that at least two Federal agencies utilize contracts for short-term leases. Therefore, DOE requests comment on whether there should be a minimum lease period or a minimum rentable square footage threshold. 6. Federal Buildings Overseas The DOD–N commented that including overseas facilities in the definition of Federal building may lead to circumstances where the agency does not have complete control over the design, or where other technical factors challenge the practicality of meeting the fossil energy reductions. (DOD–N, No. 25B at p. 8) DOE recognizes that several VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 agencies have buildings overseas and these buildings may be subject to a variety of legal authorities specific to that agency. DOE intends that the proposed rule would apply to the extent that the requirements are consistent with applicable law. DOE does not intend for the rule to cause any Federal agency to violate other legal authorities. This proposed rule does not expressly address the extent to which it may be applicable to buildings overseas as each individual agency is best positioned to understand the various and sometimes unique authorities that may be applicable to overseas buildings of that agency. In applying the proposed rule to any given building, Federal agencies must also decide whether the building meets the definition of Federal building at 42 U.S.C. 6832(6) and either the requirement that the building be a ‘‘public building’’ for which a prospectus is required, or the requirement that the building or major renovation cost at least $2.5 million. (42 U.S.C. 6834(a)(3)(D)(i)) For covered overseas facilities, Federal agencies should use the U.S. climate zone most similar to the location of the proposed building. 7. Residential Buildings DOE received four comments related to the definition of residential building categories. Lish commented that the rule definition should include housing facilities owned and managed by Federal agencies, such as the National Park Service, Forest Service, and other land management agencies. (Lish, No. 13 at p. 1) The DOD–AF requested that dormitories be removed from the proposed rule because of cost. (DOD– AF, No. 25C at p. 6) DHHS–IHS–OEHE believes there is an inconsistency between the reference to manufactured homes and mobile homes in the rule and in RECS. (DHHS, No. 24 at p. 3) DOE does not believe any changes to the proposed language in the NOPR are needed as a result of these comments. The statute requires the inclusion of all Federal buildings that are EISA-covered buildings. Some of the building types discussed by commenters may not meet the definition of ‘‘public building’’ at 40 U.S.C. 3301(a)(5) or may not require a prospectus to Congress as described at 40 U.S.C. 3307, but may meet the $2.5 million construction cost threshold. Some of the referenced buildings may not meet either threshold. Finally, DOE does not believe there would be an inconsistency between the reference to manufactured and mobile homes in the rule and in the RECS database. For purposes of the RECS database, manufactured and mobile homes are the PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 61701 same product. They are both defined as a housing unit built to the Federal Manufactured Home Construction and Safety Standards (24 CFR part 3280), built on a permanent chassis and moved to a site. 8. Privatized Military Housing DOD–AF stated that DOE should clarify that the rule does not apply to privatized military housing because, in DOD–AF’s view, privatized military housing is not ‘‘leased by a Federal agency.’’ (DOD–AF, No. 25C at p. 2) In addition, DOD–AF is concerned that the proposed rule may cause many AF Privatized Housing deals that have already been closed to be canceled or renegotiated if they have to comply with the fossil fuel reduction requirements. (DOD–AF, No. 25C at p. 1) As noted above, EISA 2007 modified the ECPA definition of ‘‘Federal building’’ to apply to any building to be constructed by, or for the use of, any Federal agency. Such term shall include buildings built for the purpose of being leased by a Federal agency, and privatized military housing. (42 U.S.C. 6832(6)) In addition, Congress again mentioned privatized military housing in ECPA when it specified that, ‘‘with respect to privatized military housing, the Secretary of Defense, after consultation with the Secretary [of Energy] may, through rulemaking, develop alternative criteria to those established in subclauses (I) [fossil fuel reduction requirements] and (III) [sustainable design requirements] of clause (i).’’ (42 U.S.C. 6834(a)(3)(D)(vi)) Although privatized military housing may not meet the definition of ‘‘public building’’ at 40 U.S.C. 3301(a)(5), the proposed rule would apply to privatized military housing with construction costs of at least $2.5 million. As described in this preamble, this cost threshold would apply on an individual building basis. 9. Other A few miscellaneous comments were submitted regarding the scope of the rule that did not fit into one of the above subcategories. One comment was submitted by an anonymous commenter and encouraged the use of vacant buildings rather than new construction. (Anon, No. 27 at p. 1) There is nothing in ECPA that would prevent the reuse of vacant buildings. Earthjustice requested data on the number of new buildings and renovations that are likely and projected to be covered by this rule. (EJ, Public Meeting Transcript, at p. 69) For purposes of developing this supplemental proposed rule, DOE assumed that the Federal government E:\FR\FM\14OCP2.SGM 14OCP2 61702 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 constructs 42 million square feet of new construction per year and renovates 14.6 million square feet per year. This assumption is based on the analysis of three years of construction data purchased by PNNL as part of a commercial building construction dataset. The data is described in ‘‘Weighting Factors for the Commercial Building Prototypes Used in the Development of ANSI/ASHRAE/IESNA Standard 90.1–2010’’, (Jarnagin and Bandyopadhyay, 2010). Data from the years 2007, 2008, and 2009 were used. Based on these analyses and assumptions, DOE expects that 44.6 million square feet of Federal building stock would be subject to this regulation each year. Over the next twenty years, DOE expects that this rulemaking would affect approximately 892 million square feet of Federal floor space. This represents less than 25 percent of the total Federal building stock in 2030, and about a quarter of one percent of the total residential and commercial building floor space in the U.S. in 2030. C. Establishing and Using the Baseline The CBECS and RECS data, which can be found at https://www.eia.doe.gov/ emeu/cbecs/contents.html and at https:// www.eia.gov/emeu/recs/contents.html, are based on actual reported energy use over a large sample of buildings, normalized for size to thousands of British thermal units per square foot of floor space (kBtu/ft2). For purposes of this rulemaking, the statute directs DOE to establish a baseline based on the energy consumption in similar buildings in fiscal year 2003 as measured by CBECS and RECS. One characteristic of buildings reported in the surveys is their age, or vintage.11 The 2003 CBECS estimates of building vintage range from pre-1920 buildings (representing the oldest) to the 2000–2003 years, which are the newest buildings in the 2003 CBECS.12 An analysis of the CBECS data indicates that 39 percent of the surveyed buildings were constructed prior to the publication of a standard energy code; the first widely recognized building energy codes were developed and published in 1975.13 Furthermore, DOE estimates that an additional 17 percent of the surveyed buildings were built before the architecture and construction 11 https://www.eia.gov/emeu/cbecs/cbecs2003/ detailed_tables_2003/2003set1/2003pdf/a1.pdf. 12 Because of the criteria for buildings subject to the requirements, DOE has initially determined the proposed requirements would apply primarily to commercial buildings. As such, DOE has focused this discussion on CBECS. 13 ASHRAE Standard 90–75, Energy Conservation in New Building Design, August 1975. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 industry recognized and used ASHRAE 90–75 nationally; i.e., 1980. Therefore, an estimated 56 percent of the buildings surveyed were constructed prior to 1980.14 The ‘‘typical building’’ in the 2003 CBECS was likely built between 1970 and 1979. The ASHRAE code is revised on a three year cycle. The version of the ASHRAE code that is applicable to new Federal commercial buildings for which design for construction began on or after August 10, 2012, is ASHRAE 90.1–2007. 10 CFR 433.4(a)(2). As compared to ASHRAE 90–75, ASHRAE 90.1–2007 has an energy efficiency improvement of approximately 30 percent.15 ASHRAE 90.1–2010 adds an additional energy efficiency improvement of approximately 18.5%.16 Although the average building in the 2003 CBECS would have been built to ASHRAE 90– 75, it is important to note that in the course of the lives of these buildings, building system components have been replaced over time so that the energy consumption as surveyed in 2003 will not be the same energy level the building used when first constructed. Even so, the energy efficiency improvements that are already required for the design of new Federal buildings would achieve a substantial portion of the fossil fuel-generated energy consumption reductions required in the interim years up to FY 2020. DOE has data that would indicate that Federal offices in Climate Zones 1a (Miami, Florida), 4c (Salem, Oregon), and 5a (Chicago, Illinois) as constructed to the requirements of the Federal baseline standard (90.1–2010) are approximately at the 65% Fossil Fuel Reduction level for government offices. Buildings constructed to be 30% better than 90.1– 2007 (as required in the Federal standards if life-cycle cost-effective) will achieve more than 65% Fossil Fuel Reduction level for government offices. This is especially true considering that new Federal buildings must be designed to achieve an energy efficiency improvement 30 percent beyond the referenced ASHARE code to the extent life cycle cost effective. The CBECS and RECS data are reported at a high level. At the highest level, the utility of the data is limited in 14 DOE estimates that even more than 56% of the surveyed buildings would have used 90–75, since the adoption of the 1980 standard was delayed two years. 15 ASHRAE Journal article titled ‘‘35 Years of Standard 90.1’’ in March 2010. https://www.ashrae. org/File%20Library/docLib/Public/20100625_ ASHRAEDAJ10Mar0220100301.pdf. 16 See DOE’s final determination notice on Standard 90.1–2010 at 76 FR 64904 (October 19, 2011) or https://www.gpo.gov/fdsys/pkg/FR–2011– 10–19/pdf/2011–27057.pdf. PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 terms of climate zones and building types. However, CBECS and RECS microdata allow additional analysis and refinement. Recognizing the importance of climate on building energy use, as well as the limitations in CBECS and RECS, in the NOPR, DOE asked several questions about refinements to the CBECS and RECS data by different categories. The questions included whether the baseline should be adjusted for climate, how to treat plug and process loads, whether the rule should differentiate between fossil fuels, and whether the rule should include a regional adjustment to the fossil fuel component of the electric power mix. These and other issues are further addressed below. 1. CBECS and RECS Baselines As previously indicated, the statute directs DOE to establish a baseline for the fossil fuel-generated energy consumption requirements using CBECS and RECS data from fiscal year 2003. A preliminary survey of the CBECS data indicates that the average building in the 2003 CBECS was subject to the 1975 version of the ASHRAE building code for commercial buildings.17 The building type definitions for commercial buildings used in the NOPR were based largely on the CBECS and RECS glossaries, with minimal modifications for regulatory clarity. For a commercial building type not listed in CBECS, the NOPR proposed that agencies establish a baseline for the proposed design using the procedures in Appendix G, Performance Rating Method, of ASHRAE Standard 90.1– 2004. For residential building types not listed in RECS, agencies would develop a baseline using the Simulated Performance Alternative from section 404 of the IECC, 2004 Supplement Edition. DOE requested comments on the building type categories and definitions. Most of the comments DOE received related to how to establish a baseline for building types not listed in the tables derived from CBECS and RECS. The American Society of Heating, Refrigeration and Air Conditioning Engineers Standard 100 Revision Committee Standard (ASHRAE Standard 100 Committee) commented that an analysis by DOE’s Oak Ridge National Laboratory (ORNL) determined that there is sufficient data in CBECS to establish energy consumption targets for 48 building types, and recommended 17 DOE has preliminarily determined that the building criteria that determine applicability of the requirements would result in primarily commercial buildings being subject. As such, DOE has focused on commercial buildings. E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules that the rule be modified to do so. (ASHRAE, No. 8 at p. 1) ICC and the Institute for Market Transformation (IMT) endorsed the uses of the CBECS and RECS databases. (ICC, No. 11 at p. 3; IMT, Public Meeting Transcript, No. 7 at p. 26) DHHS–IHS–OEHE supported DOE’s interpretation of the CBECS and RECS baselines and commented that building type definitions are appropriate, but requested clarification of the definition of health care (outpatient) facilities with diagnostic medical equipment. (DHHS, No. 24 at pp. 1, 3) EEI agreed with use of CBECS but commented that some buildings do not neatly fall into a building category. (EEI, No. 10 at p. 3) AGA encouraged the Department to develop more detailed procedures for building types not directly represented in the CBECS and RECS data, and believes the Department may engage stakeholders in this analysis. (AGA, No. 16 at p. 3) NAD and DOD–AF commented that the CBECS and RECS data does not cover some building types and larger buildings of a more industrial nature, such as military buildings, and requested information on how these will be included. (NAD, No. 19 at p. 1; DOE–AF, No. 25C at pp. 3– 4) Regarding the use of ASHRAE or the IECC, EEI recommended that ASHRAE 90.1–2004 should be allowed as an alternative to the IECC 2004 Supplement for residential buildings without baseline data. (EEI, No. 10.2 Cover Letter at p. 2) Several commenters noted that there would be a disparity between the baselines generated from CBECS and the baselines generated using ASHRAE 90.1–2004. (DHHS, No. 24 at p. 4; National Nuclear Security Administration, No. 9 at p. 1; EEI, No. 10 at p. 3; DOD–AF, No. 25C at p. 4) The Gas Technology Institute (GTI) proposed that DOE amend the ASHRAE Performance Rating Method to create a single reference building in order to be consistent with the CBECS database methodology, noting that DOE’s Home Energy Score Tool methodology would be a superior approach. (GTI, No. 22 at p. 12) NIBS supported DOE’s proposal to use Appendix G of ASHRAE Standard 90.1 and the IECC Simulated Performance Alternative, stating that these are probably the best alternatives to CBECS and RECS. However, NIBS noted there could be some issues with the quality of the baselines produced using these methods, and suggested certification of modelers and use of the COMNET protocols. (NIBS, No. 12 at p. 2) ICC and IMT stated that the CBECS and RECS data are in need of upgrading. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 NIBS encouraged DOE to expand sample sizes and improve the surveys going forward. (NIBS, No. 12 at pp. 1–2) DOE regularly updates and improves upon the CBECS and RECS. The versions of these surveys that DOE chose to use in today’s rule (2003 CBECS and 2005 RECS) were based on Congressional direction in EPCA. DOE chose to use 2005 RECS data because the RECS was conducted in 2001 and 2005 but not 2003. DOE proposes to retain CBECS as the baseline for commercial buildings and RECS as the baseline for multi-family high-rise and low-rise residential buildings with one exception. In the NOPR, DOE proposed to include the category ‘‘multi-family in 5 or more units’’ in the commercial building and multi-family high-rise residential building requirements. A ‘‘multi-family high-rise residential building’’ is a residential building that contains three or more dwelling units and that is designed to be four or more stories above grade. It is possible that a building could have four or more stories above grade, but fewer than five units. DOE believes that such buildings designs would be rare and would have energy consumption patterns similar to such buildings with five or more units. To avoid a potential gap in coverage of the building types, DOE proposes to use ‘‘multi-family high-rise residential building’’ in place of ‘‘multi-family in 5 or more units.’’ In addition, regarding the definition of health care (outpatient) facilities with diagnostic medical equipment, the reference to diagnostic equipment is from the current CBECS building types under which agencies have been reporting. DOE proposes that agencies continue to apply that term consistent with CBECS reporting. In response to comments, DOE preliminarily has decided to use the analysis from ORNL for the ASHRAE Standard 100 Revision Committee to expand the CBECS data from the twelve building categories used in the NOPR to the 48 commercial building types used in today’s rule. (As noted in the NOPR, the phrases ‘‘principal building activity’’ and ‘‘building types’’ are used interchangeably in CBECS and RECS documents. For the sake of consistency, this document only uses the phrase ‘‘building type.’’) While ORNL was conducting the climate adjustment for DOE, as DOE indicated it would conduct in the NOPR, it coordinated its work with the ASHRAE Standard 100 Revision Committee, which had a need for similar work. While developing the climate adjustment method, ORNL also developed a methodology to parse the CBECS and RECS microdata into more PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 61703 building types. As a result, as part of its public comment on today’s rulemaking, the ASHRAE Standard 100 Revision Committee requested that DOE use these building types. Although the reduction requirement for multi-family high-rise residential buildings comes from the RECS database, DOE proposes to include the requirements in the tables for 10 CFR part 433 to maintain the scope of coverage of part 433 versus part 435 building types. 2. Climate Adjustment The maximum allowable fossil fuelgenerated energy consumption values in Tables 1 and 2 of the NOPR were based on national averages not adjusted for climate. The NOPR noted that the limited number of buildings surveyed by CBECS and RECS data does not always allow for a direct estimate of building energy use by climate zone and building type because there are only a few surveyed buildings that fit into some building type/climate zone groups. 75 FR 63406. However, DOE noted that it believed a climate adjustment is necessary to provide reasonable baselines and, therefore, stated that DOE is developing fossil fuel-generated reduction requirements based on building type and then applying a climate zone as defined in the baseline energy efficiency standards at 10 CFR parts 433 and 435. 75 FR 63406. DOE requested comments on including a climate adjustment. Most of the comments DOE received regarding the climate adjustment were favorable. The ASHRAE Standard 100 Committee recommended that the maximum allowable consumption values for each of the CBECS and RECS building types be adjusted for each of the 16 climate zones developed by DOE’s Pacific Northwest National Laboratory (PNNL) based on a simulation of prototype buildings meeting ASHRAE Standard 90.1–2004 developed by DOE’s National Renewable Energy Laboratory (NREL). (ASHRAE, No. 8 at p. 1) NIBS recommended utilizing the climate normalization techniques developed by EPA for the ENERGY STAR program. (NIBS, No. 12 at p. 4) ICC states that it believes that it is sensible to take into account regional climate variations, such as those recognized in the International Energy Conservation Code. (ICC, No. 11 at p. 2) DHHS–IHS–OEHE and the American Institute of Architects (AIA) urged DOE to consider regional and climatic factors, and DHHS–HIS– OEHE suggested using the climate zones identified in ASHRAE 90.1 and IECC. (DHHS, No. 24 at p. 1; AIA, No. 15 at p. 2) GTI recommended the DOE Home E:\FR\FM\14OCP2.SGM 14OCP2 61704 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Energy Score Tool used for existing home ratings. (GTI, No. 22 at p. 11) The National Park Service, Alaska Region (NPS-Alaska), recommended an alternative table of Alaskan climate zones. (NPS-Alaska, No. 6, p. 1) EEI questioned how the adjustments are going to be calculated to address the limitations of the CBECS and RECS data. (EEI, No. 10 at p. 3) AGA commented that a climate adjustment is logical for some loads, such as space conditioning, but requested more information about DOE’s methodology. (AGA, No. 16 at p. 4) DOE proposes to include a climate adjustment. A climate adjustment places buildings in different climates on a more level-playing field. Under the proposed climate adjustments, buildings would have to achieve reductions commensurate to a baseline appropriate for their climate zone rather than a national average baseline. As a result, buildings in cold climates would have a higher target to account for the increased energy use associated with a cold climate, and buildings in warmer climates would have a lower target. This approach would ensure that buildings in both cold and warm climates achieve 55 percent reductions based on a climate-adjusted baseline, rather than the building in the cold climate having to achieve a deeper percentage reduction and a building in a warm VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 climate having to achieve a lesser percentage reduction to meet the same absolute target based on a national average. For example, assuming a CBECS or RECS national average baseline fossil fuel use equals 100 kBtu/sq.ft. for a given building, at a 55 percent reduction for FY 2010–14, the target fossil use becomes 45 kBtu/sq.ft. However, a building in a cold climate may actually use more than the national average, perhaps 150 kBtu/sq.ft. The same building in a warm climate may actually use less, perhaps 50 kBtu/sq.ft. To meet the 55 percent reduction for the FY 2010–14 national average target of 45 kBtus/sq.ft. without a climate adjustment, a building in a cold climate must achieve a reduction of 105 kBtus/ sq.ft. (which would be an actual 70 percent reduction), while the same building in a warm climate would need to achieve a reduction of only 5 kBtus/ sq.ft. (which would be an actual 10 percent reduction). Using the above example, the climate adjustment in today’s rule would set the baseline at 150 kBtu/sq.ft. for the cold climate example, so a 55 percent reduction would make the target 67.5 kBtu/sq.ft. instead of 45 kBtu/sq.ft. In the warm climate example, the baseline would be 50 kBtu/sq.ft., and a 55 percent reduction would make the target 22.5 kBtu/sq.ft. instead of 45 kBtu/sq.ft. In other words, buildings in both the PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 warm and cold climate zones have to achieve 55 percent reductions but must meet that baseline relative to the climate adjusted baseline for the appropriate climate. The same logic applies to the 65, 80, 90, and 100 percent reductions. All covered buildings designed in FY 2030 or later would be required to meet the 100 percent reduction, regardless of climate. The maximum allowable fossil fuelgenerated energy consumption in proposed Tables 1–4 of Appendix A of both part 433 for commercial buildings and multi-family residential buildings and part 435 for low-rise residential buildings include adjustments for climate. The climate adjustments were developed by ORNL. ORNL developed national energy use intensities (EUIs) for over 50 building types from CBECS and RECS, and used zonal EUI ratios derived from building simulation modeling performed by the NREL to parse the building types into 16 different climate zones. The procedure is described in more detail in ‘‘Derivation of Federal Building Fossil Fuel Energy Use Reduction Targets,’’ (ORNL/TM–2011/ 84, https://hyperion.ornl.gov/pubs/ EISATargets.pdf). DOE’s climate zone map is produced below for reference. The county-by-county climate zones are defined in the baseline standard for 10 CFR part 433—ASHRAE Standard 90.1– 2010. E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 3. Plug and Process Loads In addition to fossil fuel-generated energy consumption used for buildingrelated functions such as lighting, HVAC, and envelope, equipment related to the use that occurs within the building also consumes fossil fuelgenerated energy. This includes plug loads such as office equipment, personal computers, cash registers, and other such equipment that are typical to buildings. However, some building types also house process loads that are very energy-intensive relative to other building-related energy use. In the NOPR, DOE acknowledged that inclusion of plug and process loads in the methodology may make it more difficult to achieve the mandated fossil fuel-generated energy consumption reductions. DOE noted that all building energy consumption, including plug and process load consumption, is included in the baseline CBECS and RECS data and, therefore, proposed that plug and process loads would be subject to the fossil fuel reductions. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 DOE requested comments on how the proposed rule could be designed such that the assumptions used in the whole building simulations would accurately reflect the final building design and operation, including plug and process loads. 75 FR 63410. In this SNOPR, DOE clarifies that CBECS does not include building types with energy use dominated by process loads. Several comments were submitted relating to plug and process loads. Most comments received on plug and process loads expressed concerns about including process loads in the fossil fuel-generated energy consumption baselines, with particular concern about including energy-intensive process loads. EEI, DHHS–IHS–OEHE, DOD–AF, ASHRAE 100, and AGA commented that process or plug and process loads should not be included in the calculations since these loads do not directly represent the building design attributions. (EEI, No. 10 at p. 6; DHHS, No. 24 at p. 4; DOD–AF, No. 25C at p. 5; ASHRAE, No. 8 at p. 2; AGA, No. 16 at p. 4) PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 61705 DOE received a number of comments from DOD suggesting that because many DOD facilities do not map to the CBECS building types, DOE should remove the process load component from the calculations or otherwise treat certain buildings with process loads differently. (DOD–AF, No. 25C at p. 4; DOD– OUSOD, No. 25A at p. 2; NAD, No. 19 at p. 1;DOD–N, No. 25B at p. 9) Otherwise, DOD–N noted, petitions for downward adjustment of the reduction requirement could consist predominantly of buildings dominated by process loads. (DOD–N, No. 25B at pp. 6, 9, 12) DOD–N recommended standardized building occupancy and use assumptions. (DOD–N, No. 25B at p. 6) CBECS and RECS do not include building types with what are generally understood to be energy-intensive process loads. Process loads are typically metered separately and do not include energy consumed for maintaining comfort and amenities for the occupants of the building (including space conditioning and lighting for human comfort or convenience), E:\FR\FM\14OCP2.SGM 14OCP2 EP14OC14.000</GPH> Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 61706 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules commercial equipment and officerelated plug loads, and other loads whose energy use is included in the building categories in CBECS and RECS (such as medical equipment and commercial refrigeration). Energyintensive process loads would include, but not be limited to, activities such as manufacturing, painting, welding, metal work, fabricating, assembly, and data centers. In the proposed rule, the baseline for building types not in CBECS or RECS would have been determined by a whole building simulation, and the process loads would have been subject to the fossil fuel-generated energy consumption reduction requirements. DOE understands that it could be much more difficult for agencies designing buildings with energy-intensive process loads to comply with the requirements of today’s rule than agencies designing buildings without process loads. It is more difficult to reduce process energy consumption, and the process activity is critical to the agency’s purpose for the building. In addition, for buildings with energy-intensive process loads, the process loads tend to dominate the energy consumption of the building. As a result, DOE acknowledges that agencies with buildings with such process loads may be the agencies most likely to petition DOE for a downward adjustment of the standard if the process loads were subject to the fossil fuel reduction requirements. DOE also notes that plug and process loads are excluded from the baseline energy efficiency requirements for Federal commercial and multi-family high-rise residential buildings. (See 10 CFR 433.101) Based on these considerations, DOE proposes that for building categories and types not listed in CBECS with energy-intensive process loads, the process loads should not be subject to the fossil fuel-generated energy consumption reduction requirements of this rule. These building types would remain subject to today’s requirements by separating the process loads from the building and building-related loads as follows: 1. Federal agencies with buildings with energy-intensive process loads would choose the CBECS building type (from Tables 1–4 of Appendix A) that most resembles the building as if it had no process loads. For example, industrial facilities and airplane hangars for painting/plating would generally map to warehouses, and data centers would generally map to laboratories. 2. Agencies would then find the appropriate target from Tables 1–4 based on climate zone and fiscal year in VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 which design for construction began for the underlying building type selected in Step 1. Because Tables 1–4 do not include these process loads, agencies would add to the target the estimated fossil fuel-generated energy use of the process loads to determine the maximum allowable fossil fuelgenerated energy consumption for the proposed building. When estimating the process load, the agency would use the electricity fossil fuel generation factor and the electricity source energy factor defined in this rule to convert electricity into kBtu/sq.ft. 3. To determine compliance, agencies would estimate the energy use and fossil fuel-generated energy consumption of the proposed building using the equation in section 433.201(a) (for CBECS) or 435.201(a) (for RECS), add the estimated process load from Step 2, and compare the result to the maximum allowable fossil fuel-generated energy consumption. DOE believes that this calculation for buildings with process loads, along with the expanded list of building types described earlier, would make it unnecessary to develop an alternative baseline using a simulated model as was proposed in the NOPR. The expanded list of building types is comprehensive and should cover virtually all building types and categories in the Federal sector. Agencies should be able to find a building type from the expanded list that closely resembles the building as if there were no process loads. Thus, DOE has deleted provisions in the proposed rule to develop alternative baselines using Appendix G of the Performance Rating Method in ASHRAE Standard 90.1–2004 or the IECC Simulated Performance Alternative. DOE believes this approach is simpler and clearer than the method proposed in the NOPR, and addresses the concerns and comments that were submitted. DOE seeks comment on three specific issues related to process loads: 1. DOE recognizes that not all building categories or building types are equally represented in CBECS data. Additionally, energy use can vary widely within the same building category or type. Therefore, DOE requests additional comment on the treatment of process loads for building categories that are under-represented in CBECS, or where energy use varies widely. DOE also seeks comment on what parameters to use when determining that a building is underrepresented in CBECS. 2. In addition, DOE recognizes that buildings with high process loads must increase the capability of their HVAC systems beyond what the building PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 would require absent the building’s process-related mission. Therefore, DOE seeks further comment on whether and how to account for the increment of supplemental HVAC required to condition buildings with high process loads. 3. DOE understands that agencies may not be uniformly equipped to submeter their process loads for the purposes of calculating their required fossil fuel reduction. Therefore, DOE requests comment on the degree to which agencies presently submeter process loads. Concerning plug loads, GTI suggested that the additional variability in plug loads is a legitimate issue, but suggested that it is an issue that can be addressed by a good engineering analysis during the design phase. (GTI, No. 22 at p. 12) EEI stated that the methodology must treat plug loads the same for purposes of both the baseline and the proposed design. (EEI, No. 7 Public Meeting Transcript, at p. 33–35) Plug loads are included in the building types reported by the CBECS and RECS databases. In addition, they generally do not dominate the building energy profiles like some process loads, and it is easier to achieve plug load reductions through the use of ENERGY STAR and other energy efficient products than it is to reduce process loads. As a result, DOE preliminarily has decided that plug loads would continue to be included in the baseline and would be subject to the fossil fuel reduction requirements. 4. Differentiate Between Fossil Fuels Some fossil fuels produce higher CO2 emissions than other fossil fuels, with coal being the highest and natural gas being the lowest. The NOPR noted that ECPA makes no distinction between fossil fuels for purposes of the required fossil fuel-generated energy consumption reductions addressed by this rule. 75 FR 63406 While the statute does not specifically direct DOE to consider variation in fossil fuels for purposes of this rulemaking, DOE stated that the statute does not prohibit DOE from taking the variation into account. With that in mind, DOE requested comments on whether all fossil fuels should be treated equally or whether each should be treated differently based on CO2 emissions or some other factor. DOE received several comments about differentiating between fossil fuels. The comments varied, although most favored differentiating between fossil fuels. DHHS–IHS–OEHE supported taking into consideration the actual CO2 emission factors of fossil fuel types and whether or not a fuel comes from E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 domestic or imported sources. (DHHS, No. 24 at p. 2) DOD–N, National Rural Electric Cooperative (NREC) and the General Services Administration— Office of Federal High Performance Green Buildings (GSA) also supported weighting fossil fuels based on their respective carbon footprints. (DOD–N, No. 25B at p. 4; NREC, No. 28 at p. 2; GSA, No. 26 at p. 2) The Office of the Deputy Under Secretary of Defense, Installations and Environment, Facilities Energy Directorate (ODUSD) believes such an approach would help, but recommended a thorough study of the potential cost impact prior to implementing such a policy. (DOD– OUSOD, No. 25A at p. 3) GTI recommended that fossil fuel types be distinguished by their cost, efficiency and CO2 content. (GTI, No. 22 at p. 13) The AGA commented that the DOE should restrict its consideration only to fuel cycle issues, not carbon contributions of fuel cycles, because greenhouse gas emissions are not the dominant issue in this rulemaking. (AGA, No. 16 at pp. 4–5) DOE notes that ECPA establishes building design requirements based on ‘‘fossil fuel-generated energy consumption’’ of a building, not greenhouse gas emissions of a building or other factors that may differentiate fossil fuels. Upon reconsideration of the issue as it was proposed in the NOPR, DOE believes that applying the reduction requirements equally to all fossil fuel types is the best interpretation of the statute. As a result, DOE is not differentiating between fossil fuels in today’s rulemaking. 5. Regional Fossil Fuel Factors To determine the fossil fuel-generated energy consumption of the buildings reported in CBECS and RECS, the fossil fuel component of the electricity used by the building was added to the building’s direct fossil fuel consumption. To calculate the fossil fuel component of site electricity use, site electricity was multiplied by the percentage of electricity nationally that is produced from fossil fuels, referred to as the electricity fossil fuel generation factor for purposes of this rule. The factor was obtained by summing the electricity generated from fossil fuels (coal, oil, natural gas, and other gases) from Table 3.2.A of the Energy Information Administration (EIA) 2012 Electric Power Annual Report (https:// www.eia.gov/electricity/annual/html/ epa_03_02_a.html) and dividing it by the total electricity produced in the U.S. 75 FR 63407. According to Table 3.2.A, for 2003, the fossil fuel generation factor was 0.71, meaning that about 71 percent VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 of all electricity in the U.S. is generated from fossil fuels. DOE chose to use the 2003 value in accordance with the statutory mandate that buildings be designed so that the fossil fuelgenerated energy consumption of the buildings is reduced as compared with such energy consumption by a similar building in fiscal year 2003 (as measured by CBECS or RECS.) In addition, DOE notes that the fossil fuel generation factor has varied from 0.71 in 2003 to a peak of 0.74 in 2007 and back to 0.71 in 2012. DOE indicated in the NOPR that it was considering a regional approach to establishing the fossil fuel fraction associated with electricity, and asked for comments. Public comments were mixed, some supporting and some opposing the use of a regional fossil fuel factor. EEI questioned whether adjustments for regional electricity use would be made by census region, sub-census region, power pool region, by state, or by some other form of disaggregation. (EEI, No. 10 at p. 3) GSA also supported a regional approach. (GSA, No. 26 at p. 1) AGA supports use of a regional fossil fuel mix for electric generation based on eGRID subregional level data. (AGA, No. 16 at p. 4) The ICC supported the current proposed approach of using the national average, stating that it would be more efficient to simplify the requirements and smooth the differentials between buildings by using a national average fossil fuel generation factor. (ICC, No. 11 at pp. 2–3) GTI stated that for the purposes of national rulemaking, national average factors would be consistent with some of DOE’s prior methodology and protocols. (GTI, No. 22 at p. 7) DHHS–IHS–OEHE and NIBS also support the national average fuel mix. (DHHS, No. 24 at p. 2; NIBS, No. 12 at p. 2) NAD stated that the electricity source energy factor and electricity fossil fuel-generation factor should be based on a regional approach. (NAD, No. 19 at p. 1) The difference in regional fossil fuel factors would not increase overall fossil fuel reductions, but would simply shift where reductions come from. Buildings in regions with high fossil fuel content in their electric power mix would require deeper reductions in electricity use than buildings in regions with lower fossil fuel content in their electric power mix. For agencies with buildings across the nation, the fossil fuel content of their buildings, in the aggregate, would tend toward the national average. Introducing regional differences adds complexity to the rule with little additional benefit. Finally, the source of electricity used in a region may be different than the PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 61707 source of electricity generated in that region. Power may be generated in one place, but shipped via the grid to another area for use. Utilities may purchase power from another utility or a merchant plant at a distant location. While data on power generation is readily available, data on where the electricity in an area comes from and how it was produced is more difficult to trace. This leads to the question of what the appropriate breakdown of region would be—utility district, state, power pool area, or interconnection grid. Based on these preliminary conclusions, DOE proposes to use the national electric power mix in determining the fossil fuel portion of electricity consumption in the rule. Using the national average fossil fuel factor is simpler for Federal agencies and DOE believes it would yield equivalent results. In addition, DOE proposes to calculate and post the value of the fossil fuel generation factor to be used each year on the FEMP Web site and as an update to this regulation1 rather than requiring agencies to refer to the Buildings Energy Data Book on an annual basis as was proposed in the NOPR. 6. Marginal Source of Electricity The NOPR stated that reductions in future electricity demand are likely to cause electric utilities to reduce the power supplied by those electricity generation units or sources that have the highest marginal costs. DOE believes that over the short and long-run, fossil fuel-powered units would have higher marginal costs than units powered by nuclear, hydropower, or renewable energy sources. DOE invited comments on whether marginal factors to estimate the fossil fuel consumption associated with electricity consumption should be considered, on grounds that marginal factors might better reflect the fossil fuel portion of new generating capacity that is being built. 75 FR 63407. For example, if almost all new electricity generation capacity built for new demand in the coming years is from non-fossil sources of energy, then it might be reasonable for new Federal buildings to reduce only their locally consumed fossil fuel consumption and not focus on reducing electricity demand to meet the requirements of the rule. AGA commented that the rule should not use marginal electricity generation, noting that the most equitable means of including new ‘‘marginal’’ generation into the electric grid is as additional 1 https://energy.gov/eere/femp/federal-energymanagement-program. E:\FR\FM\14OCP2.SGM 14OCP2 61708 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 supply to the average mix. (AGA, No. 16 at p. 4) DOD–N recommended using marginal fossil fuel reduction factors, averaged nationally. (DOD–N, No. 25B at p. 4) NIBS commented that it would be appropriate to consider the time of such electricity use and its likely impact on the fossil fuel mix. (NIBS, No. 12 at p. 2) EEI was concerned that the electric grid is changing and the tools used by DOE in the rule are already out of date. (EEI, Public Meeting Transcript, No. 7 at p. 45) EEI commented that the source energy methodology looks backwards and does not account for the dynamic changes to electric generation that will be occurring over the next 20–30 years, and that DOE’s 71 percent electric source factor nationwide is outdated and does not account for the states that have renewable portfolio standards. (EEI, No. 10 at p. 3) DOE has considered the issue and is proposing not to use marginal electric source factors. The mix of new electric generating capacity added to the grid varies year-to-year. However, the amount of electricity generated from fossil fuels on an annual basis has varied from 68 percent to 72 percent over the past fifteen years, with no discernible trend. If new, marginal generating capacity were steadily becoming more fossil fuel-dependent or less fossil fuel-dependent, there would be a trend in how much electricity is produced from fossil fuel on an annual basis, but such a trend is not discernible in the current data. In addition, the load growth represented by buildings covered by this rule is likely too small relative to overall electric utility load growth to change utility decisions on investment in new generating resources. Furthermore, as the fossil fuel reduction requirement increases toward 100 percent for buildings for which design for construction begins in FY2030, the marginal factors will be less relevant because all fossil fuel use will be eliminated in any event. For these reasons DOE believes it would be best to continue to use average generating capacity for the fossil fuel generation factor rather than marginal generating capacity. 7. Residential Common Areas The NOPR stated that the RECS baseline for multi-family residential buildings only includes the energy use for individual dwelling units, not any associated conditioned common areas. DOE proposed applying the RECSderived fossil fuel requirements to all applicable floor space, including both common and non-common areas. 75 FR 63408. Because common areas often have a lower energy intensity than VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 individual dwelling units, using only non-common areas in the calculation for the proposed design’s fossil fuel consumption is likely to result in a slightly higher maximum allowable fossil fuel-generated energy requirement than using both common areas and noncommon areas in the calculation. This approach will make it easier for building designers to demonstrate compliance for a residential building overall. Because common areas account for only a small fraction of the floor space in multi-family residential buildings, however, the actual effect on fossil fuel reductions would be minimal. AGA and DHHS–IHS–OEHE supported application of the energy use values for non-common areas to all applicable floor space, common and non-common. (AGA, No. 16 at p. 4; DHHS, No. 24 at p. 4) Based on the rationale provided in the NOPR and the supporting public comments, this proposed rule continues the approach proposed in the NOPR. 8. Major Renovations As noted previously in this document, the CBECS and RECS data that provide the baseline for today’s requirement are building level data. For major renovations that are whole building renovations, the maximum fossil fuelgenerated energy consumption values generated from CBECS and RECS provide requirements that are comparable to the energy consumption of the whole building renovation. However, DOE believes that the maximum consumption levels presented in the proposed tables may not be appropriate for major renovations that are system or component level retrofits. As such, DOE is proposing that the requirements for system and component level retrofits would be based on percentage of whole building fossil fuel consumption represented by the retrofitted system or component. The applicable table value would be multiplied by this percentage to arrive at the maximum allowable energy use of the retrofitted system or component. DOE requests comment on this approach, as well as comment on other approaches that could be used to determine the requirement for system and component level retrofits. 9. Other Two additional comments were submitted that do not fit into one of the scope subcategories. EEI asked how mixed-use buildings would be treated. (EEI, Public Meeting Transcript, No. 7 at p. 19) The proposed rule required agencies to perform a building areaweighted average in order to determine PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 the appropriate baseline for mixed-use buildings. 75 FR 63407. The specific method to do this is found in section 433.200(d)(3) of the proposed rule. NPGA thought a paradox existed in that the required reductions identified for years preceding FY 2030 may change and yet fossil fuel energy consumption reductions may not apply to Federal agencies until the regulations are finalized. (NPGA, No. 23 at p. 4) DOE notes that the specific percentage reduction requirements by fiscal year are defined by statute and cannot be changed by DOE. In the NOPR, DOE stated that DOE intends to revise the maximum allowable fossil fuelgenerated energy consumption tables, which are based on the required percentage reductions in the statute, to adjust for climate. 75 FR 63408. DOE has done this in today’s rulemaking. DOE acknowledges that the specific means to obtain the FY 2030 goal are not known today, but believes that advances in design practices and technology over the next 20 years will make the requirement increasingly attainable. D. Methodology To Determine Compliance Once the appropriate baseline fossil fuel-generated energy consumption has been determined for commercial buildings and multi-family high-rise residential buildings and low-rise residential buildings, this rule provides the statutorily-mandated reduction requirements to those baseline consumption values. As noted in the NOPR, rather than setting standards by only listing the percentage reductions required, DOE has decided to deduct the statutorily-required percent reductions from the CBECS and RECS baselines to establish the maximum allowable fossil fuel-generated energy consumption for each building type and climate zone. 75 FR 63408. Establishing today’s standard as an absolute value should simplify agency use and interpretation of this proposed rule. 1. Whole Building Simulation To determine energy use in the proposed design, DOE proposed in the NOPR that the fossil fuel-generated energy consumption of a proposed new Federal building or major renovation of a Federal building be estimated using the Performance Rating Method found in Appendix G of ANSI/ASHRAE/ IESNA Standard 90.1–2004 for commercial and multi-family high-rise residential buildings, and the IECC 2004 Supplement for low-rise buildings. 75 FR 63409. Because of the complexity involved in estimating fossil fuel- E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules generated energy consumption, this requirement would effectively require the use of a whole building simulation tool, which can be difficult and increase cost. As a result, DOE invited comments on alternatives to a whole building simulation. The ICC endorsed the use of the Simulated Performance Alternative found in IECC 2004, but suggested that the rule reference more recent versions. (ICC, No. 11 at p. 3) NRDC and NIBS commented that DOE should work with the energy modeling industry to standardize modeling assumptions and results provided by the simulation programs, and eventually certify modeling programs and users. (NRDC, No. 14 at p. 16; NIBS, No. 12 at p. 2) The International District Energy Association (IDEA) was concerned that the Performance Rating Method in Appendix G of ASHRAE Standard 90.1– 2004 is based on energy costs, as it modifies the Energy Cost Budgeting Method in Chapter 11 of ASHRAE Standard 90.1. (IDEA, No. 21 at p. 2) DOE proposes that the estimated fossil fuel use of the proposed building be calculated in accordance with the provisions relating to ‘‘the proposed design’’ in the Performance Rating Method in Appendix G of ASHRAE 90.1–2007. Provisions in Appendix G relating to the generation of a baseline or the Energy Cost Budgeting Approach are irrelevant to today’s rule. As stated in the NOPR, the Performance Rating Method in Appendix G of ASHRAE 90.1 and the IECC Simulated Performance Alternative are already prescribed at 10 CFR parts 433 and 435 for determining whether covered new Federal buildings meet the required energy efficiency standards in those sections. In addition, whole building simulations are already performed today for most medium- and large-sized buildings to accurately estimate loads for purposes of sizing HVAC equipment and to evaluate buildings under voluntary advanced building programs. Based on this and the comments received, DOE is not changing this approach in today’s rule. On August 10, 2011, DOE published a final rule updating Federal energy efficiency baseline standards in 10 CFR part 435 for low-rise residential buildings to the 2009 IECC. 76 FR 49279. On July 19, 2013, DOE published a final rule updating the Federal energy efficiency baseline standard in 10 CFR part 433 for commercial and multifamily high-rise buildings to ASHRAE Standard 90.1–2010. 78 FR 40945. DOE also acknowledges the need to improve work with the energy modeling industry to standardize assumptions and certify VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 programs and users, but such collaboration is outside the scope of this rule. DOE and ENERGY STAR, drawing upon their experience with EnergyPlus Software and Target Finder, respectively, are participating with the Commercial Energy Services Network (COMNET, www.comnet.org) to develop energy performance modeling guidelines and procedures. DOE recognizes that the whole building approach likely is not appropriate for major renovations that are limited to system or component level retrofits. As noted previously, for major renovations that are less than whole building renovations (i.e., system or component level retrofits) DOE is proposing establishing the maximum allowable fossil fuel consumption in fiscal years 2013 through 2029 based on the percentage of whole building consumption represented by retrofitted system or component. The applicable table value would be multiplied by this percentage value to arrive at the maximum allowable fossil fuel consumption of the retrofitted system or component. For determining compliance, DOE is proposing basing the subject fossil fuel-generated energy consumption on the system or component as retrofitted. This would require the design engineer to estimate the energy consumption of the systems or components as renovated. 2. Off-Site and On-Site Renewable Energy and Renewable Energy Certificates The NOPR stated that in order to meet the fossil fuel-generated energy consumption reduction requirements mandated by ECPA, fossil fuelgenerated energy consumption could be offset with the use of renewable energy. 75 FR 63410. DOE also recognized that there may be physical limitations to the amount of on-site renewable electricity that can be produced, and it may be more affordable for an agency to purchase electricity from centralized renewable energy-generation facilities. DOE was concerned, however, that the purchase of renewable energy-generated electricity via Renewable Energy Certificates or direct Power Purchase Agreements (PPAs) may simply reduce the amount of renewable energy available for purchase by other entities within the U.S. and may not necessarily lead to an overall decrease in domestic fossil fuel-generated energy consumption. In addition, DOE was concerned that the purchase of Renewable Energy Certificates does not involve a long-term binding agreement and can readily be cancelled. DOE indicated in the NOPR that it was PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 61709 leaning toward allowing direct PPAs with a long-term contract to count toward meeting the fossil fuel-generated energy consumption reduction requirements, but not allowing Renewable Energy Certificates. 75 FR 63410. Numerous comments were submitted about Renewable Energy Certificates and PPAs. The Renewable Energy Markets Association (REMA) supported the use of Renewable Energy Certificates and stated that as demand outstrips supply, more renewable energy generation will be built. (REMA, No. 20 at pp. 1–2) REMA also indicated that the purchase of Renewable Energy Certificates is allowed to meet other Federal requirements, and commented that PPAs should be allowed only if the renewable energy attributes (the associated Renewable Energy Certificates) are purchased by the agency as well. (REMA, No. 20 at pp. 1– 2) NAD and NREC encouraged the use of Renewable Energy Certificates to stimulate demand for renewable energy generation. (NAD, No. 19 at p. 2; NREC, No. 28 at p. 2) EEI recommended use of both Renewable Energy Certificates and PPAs with a minimum contract term. (EEI, No. 10 at p. 8) The National Nuclear Security Administration (NNSA) commented that Renewable Energy Certificates should be allowed if the renewable energy was generated on Federal property or, from any source, if the contract is for a period of five years or greater. (NNSA, No. 9 at p. 1) DHHS– IHS–OEHE was concerned that unless the availability of renewable energy sources from the grid is allowed and expanded, these fossil fuel reduction goals will not be met, and therefore supported the use of Renewable Energy Certificates and PPAs. (DHHS, No. 24 at pp. 5–6) GSA expressed concern about the requirement for long-term contracts, and indicated that GSA cannot procure renewable energy under PPAs in a manner that would make them economical due to their 10 year utility contracting authority under Federal Acquisition Regulation Part 41. (GSA, No. 26 at p. 2) NIBS strongly discouraged the utilization of PPAs or Renewable Energy Certificates as a mechanism for meeting such requirements, stating that it would hamper interest in energy efficient design. (NIBS, No. 12 at p. 3) AGA opposed the use of Renewable Energy Certificates and PPAs, stating there is no guarantee that they will contribute to fossil fuel reductions. (AGA, No. 16 at p. 5) AGA was also concerned that, because the statute does E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 61710 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules not address efficient use of energy in Federal buildings, the rule encourages potentially wasteful use of renewables and nuclear-generated electric energy. (AGA, No. 16 at p. 1) AGA and GTI commented that, if PPAs are allowed, the rule should also allow the purchase of natural gas from renewable sources as well, such as biomethane, biopropane, biofuel oil and biomass. (AGA, No. 16 at p. 5; GTI, No. 22 at p. 14) APGA commented that DOE should not allow contracts to deliver off-site renewable energy to count towards on-site fossil fueled energy reductions because such contracts cannot insure that only nonfossil-fueled electrons are delivered to Federal facilities. (APGA, No. 17 at p. 6) In addition to Renewable Energy Certificates and PPAs, DOE received several comments from DOD about allowing agencies to use an agency portfolio approach for renewable electricity produced off-site by the agency. These commenters stated that they encourage investment in renewable energy where it is most cost-effective, which is often across a portfolio rather than on a building-by-building basis. (DOD–OUSOD, No. 25A at p. 1; DOD– N, No. 25B at p. 1; DOD–AF, No. 25C at p. 4) DOE proposes to permit a deduction, subject to limitation, for ‘‘on-site renewable electricity generation’’ and for ‘‘off-site renewable electricity generation’’ (e.g., Renewable Energy Certificates, agency portfolio renewable energy production and off-site PPAs). Today’s proposal specifies that ‘‘onsite renewable electricity generation’’ is the amount of electricity to be consumed by the subject building that is contributed by renewable electricity generated at the Federal site or facility on which the subject building will be located. Thermal energy produced from a renewable energy source reduces a building’s load and would be treated the same as energy efficiency for purposes of this rule. Federal agencies that choose to use on-site renewable electricity generation would not be permitted to transfer the environmental attributes of the on-site generation. In other words, agencies would not be permitted to convey the REC associated with the onsite project to an off-site project. In the proposed regulation Federal agencies are given credit for on-site renewable energy via the renewable energy and CHP electricity deduction in the calculation for the fossil fuelgenerated energy consumption of a proposed design. On-site renewable energy would be subtracted from the proposed design’s annual site electrical consumption. The building designer typically uses site electrical energy VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 consumption when calculating the building’s fossil fuel-generated energy consumption. Deducting renewable energy generation from the proposed design’s site electricity consumption before adjusting the electricity consumption for the electricity source energy factor and the fossil fuel generation factor would ensure that renewable energy generation is given appropriate credit for reducing fossil fuel-generated energy consumption. Biomethane, biopropane, biofuel oil, and biomass used on-site, to the extent they can be identified and accounted for, would not be included in direct fossil fuel energy consumption and would qualify as a renewable energy deduction if used to generate electricity. DOE understands agencies’ interest in allowing the use of off-site renewable energy resources, including environmental attributes represented by Renewable Energy Certificates, to help meet the requirements. It may be difficult to achieve the required fossil fuel reductions without use of renewable resources, and on-site renewable resources may not be feasible or available in many cases. Thus, use of off-site renewable electricity resources and/or Renewable Energy Certificates, may be necessary. In addition, with offsite renewable resources, agencies may be better able to optimize production or reduce costs because of resource availability, economies of scale, and other factors. While DOE acknowledges the benefits of off-site renewable energy, DOE has some concerns with allowing the use of off-site renewable energy, including Renewable Energy Certificates, without limitation. DOE is concerned that energy representing a Renewable Energy Certificate that is not under substantial control of the Federal agency claiming the REC because ECPA, as amended, requires that each Federal agency meet the reduction requirements for each of its Federal buildings. DOE is also concerned about RECs being not properly tracked and accounted for, and that a REC may not represent new or additional capacity. Additional administrative and accounting complexity could detract from agency compliance. Therefore, under this SNOPR, agencies would be required to ensure that any renewable energy resources used to meet the rule represent new capacity and are not drawn from existing resources, and the renewable energy generation could not be used to offset the fossil fuel-generated energy consumption of more than one design. DOE believes that requiring off-site generation to represent new capacity PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 would be consistent with the statutory goal of reducing total fossil fuel consumption. DOE acknowledges that increased demand for Renewable Energy Certificates, whether from the Federal sector or elsewhere, will send a market signal to develop more renewable resources rather than reduce the amount of Renewable Energy Certificates available for other entities. DOE also recognizes that many commenters support the use of Renewable Energy Certificates as a compliance path for this SNOPR. To receive credit against the reduction targets under any of the above scenarios, an agency would be required to ensure that the renewable energy environmental attributes are dedicated to meeting the fossil fuel reduction requirements of the subject new or renovated building and not used elsewhere. The renewable energy environmental attributes would need to be retained by the agency. Environmental attributes represent the general environmental benefits of renewable generation such as air pollution avoidance (e.g., sulfur dioxide, nitrogen oxide, methane, carbon dioxide). The exact quantity of the environmental benefit (e.g. pounds of emission reductions of a given pollutant) is not indicated by an environmental attribute, though it can be quantified separately through engineering estimates. The environmental attribute represents all environmental benefits provided by renewable energy generation. DOE recognizes that the December 5, 2013 ‘‘Presidential Memorandum— Federal Leadership on Energy Management’’ (‘‘Presidential Memorandum) prioritizes Federal agency renewable energy sources for purposes of meeting the renewable energy consumption goals in the Presidential Memorandum. Federal agencies should consider the prioritization in the Presidential Memorandum when determining how they would comply with this proposed rule. DOE requests additional comment on the issues related to the use of off-site renewable energy generation, including Renewable Energy Certificates, in complying with the proposed rule. Specifically, DOE is also concerned about, and requests comment on, how the current state of information and markets would allow Federal agencies to reliably trace a Renewable Energy Certificate to an actual reduction in fossil fuel use. E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 3. Use of Source Energy The NOPR stated that CBECS and RECS data does not provide data on total fossil fuel-generated energy consumption in buildings; however, fossil fuel-generated energy consumption can be calculated from CBECS and RECS data by using the following equation: Fossil fuel-generated energy consumption = Direct consumption of fossil fuels in the building plus the amount of electrical energy consumption that is generated from fossil fuels. 75 FR 63407. In order to determine the amount of electricity consumed in the building that is generated from fossil fuels, it is necessary to convert site electricity to source energy. Source energy is the total amount of energy used at the site, including the energy used to generate and deliver electricity to the site. Site electricity is converted to source energy by multiplying site electricity by the electricity source energy factor. For purposes of today’s rule, source energy is further adjusted to account for the portion of electricity generated from fossil fuels by multiplying source energy times the fossil fuel generation factor and adding direct consumption of fossil fuels in the building. DOE did not ask for comment on this issue except as to whether the calculation could be effectively used for on-site combined heat and power systems (discussed later). Nonetheless, DOE received several comments concerning the use of source energy rather than site energy. NREC commented that site energy, which can be easily measured and verified, is the only correct method that can be used. (NREC, No. 28 at pp. 1–2) EEI stated that the use of source energy contradicts the 2007 final rule on energy efficiency performance standards for new Federal buildings, and urged DOE to use site energy. (EEI, No. 10 at p. 2) EEI stated that the use of source energy contradicts the conclusion of ASHRAE’s Technology Council Ad Hoc Committee on Energy Targets, where ASHRAE, the American Institute of Architects (AIA), the U.S. Green Building Council (USGBC), and the Illuminating Engineering Society of North America (IESNA) agreed to use site energy as the metric for net-zero energy buildings. (EEI, No. 10 at pp. 4–5) EEI also claimed that the use of source energy will make the reduction targets unattainable. (EEI, No. 10 at p. 7) Finally, EEI argued that site energy metrics would eliminate any game playing or distorted results from the use of on-site renewable energy or CHP systems. (EEI, No. 10 at p. 6) VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 AGA commented in support of DOE’s proposed use of source energy. Source energy, AGA stated, is essential to calculating fossil fuel use in both direct primary energy use and electric generation, and is consistent with the recommendations of the National Research Council on energy efficiency standards and measurement approaches, EPA’s ENERGY STAR for Commercial Buildings, and national consensus standards such as the Green Buildings Initiative, ANSI standard and proposed IgCC Version 2.0 model code. (AGA, No. 16 at pp. 2–3) AGA recommended, for clarity, that the regulatory definitions include ‘‘source’’ energy. (AGA, No. 16 at p. 4) GTI supported the use of source energy. They commented that site energy incentivizes lower first cost technologies and inadvertently promotes fuel switching away from more full-fuel-cycle energy efficient and lower greenhouse gas-emitting technologies. (GTI, No. 22 at pp. 5, 14) GTI also commented that the proposed DOE definition of primary energy only considers the energy required to convert fuels to electricity at the power plant, not the fossil fuel energy consumption associated with extraction, processing, transportation, or distribution of fuels used directly in buildings. (GTI, No. 22 at p. 2) GTI, APGA, and NPGA commented that DOE’s proposed source energy metrics should be replaced with full-fuel-cycle information as DOE has decided to use in certain analyses the Department conducts when setting energy conservation standards for consumer products and commercial equipment. (see Docket No. EERE– 2010–BT–NOA–0028, RIN 1904–AC24, Statement of Policy for Adopting FullFuel-Cycle Analyses into Energy Conservation Standards Program.) (GTI, No. 22 at p. 15; APGA, No. 17 at p. 3; NPGA, No. 23 at p. 3) GTI offered DOE’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model as the primary energy to full-fuel-cycle conversion factor methodology, and its Source Energy and Emissions Analysis Tool (SEEAT) as its underlying methodology for consideration. (GTI, No. 22 at pp. 5–6) DOE continues to believe that source energy is the correct metric to use for this rulemaking, for reasons cited in the NOPR and discussed at the beginning of this section. Because this rule relates to fossil fuel reductions specifically (rather than energy reductions generally) and not all electricity is produced from fossil fuels, it was necessary to go beyond site energy and look at source energy to accurately quantify fossil fuel consumption for electricity. For this PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 61711 reason, DOE adjusted site energy from electricity by the percentage of electricity produced from fossil fuels (fossil fuel generation factor) and the fuel conversion, transmission, and distribution losses (electricity source energy factor) to determine the fossil fuel-generated energy consumption from electricity. The use of source energy is consistent with the approach EPA uses for ENERGY STAR Portfolio Manager. EPA has determined that source energy is the most equitable unit of evaluation for fossil fuels.1 Source energy forms the basis for the maximum allowable fossil fuel-generated consumption reductions in Tables 1–4 in Appendix A. Regarding EEI’s concern that source energy would distort the results or cause game-playing with on-site renewable energy or CHP, this SNOPR gives on-site renewable energy generation the same benefit as improved energy efficiency. Under either scenario, the non-fossil fuel generation does not count toward the proposed design site electricity consumption. Similarly, any electricity produced by a CHP does not count toward the proposed design site electricity consumption. Regarding EEI’s contention that source energy will make the reductions unattainable, DOE notes that if the reductions are not attainable via energy efficiency alone, Federal agencies may choose to use a renewable energy deduction. DOE appreciates the comments from GTI and others about using a full-fuelcycle approach with the GREET or SEEAT models, but believes the methods used in this rule are appropriate to address the statutory requirements. The maximum allowable fossil fuel-generated energy consumption targets in today’s rule incorporate losses back to the power plant and the pipeline. However, DOE does not believe it is necessary to go further upstream in its analysis for purposes of this rule. Any losses that occur further upstream than the power plant or pipeline would be very difficult to substantiate with precision. 4. Fuel Conversion Efficiency In the NOPR, DOE proposed that the electricity source energy factor would be based on the average utility delivery ratio in Table 6.2.4 of the 2010 DOE Building Energy Data Book (See https:// buildingsdatabook.eere.energy.gov). 75 FR 63410. The ratio accounts for fuel conversion losses to produce electricity, as well as transmission and distribution losses. DOE used the electricity source 1 U.S. Environmental Protection Agency. ENERGY STAR Performance Ratings Methodology for Incorporating Source Energy Use. March, 2011. E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 61712 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules energy factor of 0.316 from the most recent year data was available, 2008. Recent updates in the 2011 DOE Buildings Energy Databook (see https:// buildingsdatabook.eere.energy.gov) indicate that the current value in most current historical value in 2010 was 0.323, with a predicted gradual increase to 0.340 by 2035. EEI commented that assuming a 33 percent conversion efficiency of fossil fuels to electricity will guarantee miscalculations, especially in areas with more renewable forms of electric generation. (EEI, No. 10 at p. 3) For example, the conversion efficiency of natural gas generation built over the last 10–15 years, has a thermal efficiency in the 55 to 57 percent range. (EEI, No. 7 Public Meeting Transcript, at p. 29; EEI, No. 10 at p. 3) AGA commented that DOE should not impose barriers to use of end-use fuel choice as a means of achieving target reductions. (AGA, No. 16 at p. 3) APGA and GTI commented that since generation efficiency and fuel mix will not materially change between now and 2030, it will be critical to reduce purchased electricity consumption significantly to help achieve required targets. (APGA, No. 17 at p. 4; GTI, No. 22 at p. 2) APGA commented that the proposed definition of primary energy is incomplete in that it only considers the energy required to convert fuels to electricity at the power plant, not primary energy resources necessary to obtain and transport the fuel to the power plant nor fossil fuel energy consumption associated with extraction, processing, transportation, or distribution of fuels used directly in buildings. (APGA, No. 17 at p. 3) APGA also commented that renewable generation requires fossil fueled backup, which will frustrate the 100 percent elimination of fossil fuel-generated energy consumption. (APGA, No. 17 at p. 6) DOD–N commented that the thermal efficiency factor has been omitted from the proposed calculation. (DOD–N, No. 25B at p. 3) IDEA commented that the definition of electricity source energy factor appears to be incorrect and should refer to ‘‘primary fuel’’ rather than ‘‘primary electrical energy.’’ (IDEA, No. 21 at p. 2) First, DOE notes that thermal efficiency is embedded as part of electricity source energy factor, as well as the other fuel source energy multiplier. Further, DOE does not share the concern that the use of fossil fuels for backup power by a utility when intermittent renewable energy is not available will frustrate the 2030 goal of 100 percent reduction in the use of fossil fuel-generated energy. Compliance VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 with the requirements leading up to 2030 (i.e., 55 percent in FY 2010–2014, 65 percent in FY 2015–2019, 80 percent in FY 2020–2024, and 90 percent in FY 2025–2029) is determined on an annual basis, and DOE believes it is reasonable to continue to apply that approach to the 100 percent reduction requirement after 2030. Even though fossil fuels may be used by a utility as backup power during certain times of the day or year when a renewable resource is not available, surplus renewable energy provided at other times will offset fossil fuel consumption for use elsewhere. In the NOPR, ‘‘primary electrical energy use’’ was a term used only in the definitions of ‘‘electricity source energy factor’’ and ‘‘fossil fuel consumption for electricity generation.’’ The latter term is not included in the today’s rule, and the definition of ‘‘electricity source energy factor’’ has been modified and no longer refers to ‘‘primary electrical energy use,’’ eliminating the need to redefine the term. The definition of ‘‘electricity source energy factor’’ has been simplified in this proposed rule. Electricity source energy factor is defined as the multiplier used to account for fuel conversion losses and transmission and distribution losses associated with electricity generated from fossil fuels. For this proposed rule, the factor to be used is 0.316. This represents the average efficiency of fossil fuel generation in 2008 as described in the NOPR. The electricity source energy factor was used to help convert CBECS and RECS site energy data to source energy in Tables 1–4 of Appendix A as described in the preamble section on source energy. EEI argued that it is inconsistent to use estimates for going ‘‘upstream’’ for electricity but not for direct use of fossil fuels. (EEI, No. 10 at p. 6) DOE has added an ‘‘other fuels source energy multiplier’’ to the equation for various fuels other than electricity to determine the fossil fuel-generated energy consumption of the proposed building. These multipliers were used by ORNL when converting the CBECS site energy use data to source-based fossil fuel generated energy consumption, so the multipliers also need to be included in the calculation for the proposed building. The multipliers account for distribution and other losses that occur between the time the fuel provider takes delivery and final delivery to the building site as measured at the meter, and provides consistency with the adjustment for electricity. The ‘‘other fuels source energy multipliers’’ do not include well-head, mine-mouth, or bulk fuel transportation losses. PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 5. On-Site Energy Generation From Natural Gas The NOPR indicated DOE’s interest in the effect of the fossil fuel-generated energy consumption reduction requirements on distributed energy technologies that provide onsite electrical generation from natural gas, such as combined heat and power (CHP) systems to generate both heat and electricity. A building with a CHP system could potentially be an all-gas building in terms of utility purchases and would, therefore, be required to reduce natural gas consumption in accordance with the fossil fuelgenerated energy consumption reduction requirements. DOE indicated its interest in minimizing the penalty or not discourage the use of on-site CHP systems, within the limits of the statutory language. DOE invited comments on how appropriate credit may be given for CHP systems through the compliance determination methodology. 75 FR 63410. DOE received several comments related to distributed energy technologies. IDEA commented that district heating systems may use a mix of fossil fuels and renewable fuels and may also supply electricity to the power grid using combined heat and power (CHP), and that the rule does not accurately capture the efficiency of district energy. (IDEA, No. 21 at p. 2) EEI disagreed that on-site CHP has inherent efficiencies compared to purchased electricity; CHP can be very efficient, but it is not always more efficient than combined-cycle generation. (EEI, Public Meeting Transcript, No. 7 at pp. 53–54) EEI also commented that one of the issues is the on-site production of energy, whether it is electric energy, thermal energy or fossil fuel energy. (EEI, Public Meeting Transcript, No. 7 at p. 51) On a related issue pertaining to on-site generation more broadly, EEI commented that the use of on-site renewable energy does not change the energy efficiency of the building, it only moves the source of energy closer to the building. (EEI, No. 10 at p. 5) NIBS commented that the logic behind singling out CHP systems seems flawed because their efficiency is already accounted for. (NIBS, No. 12 at p. 3) AGA commented that the direct use of natural gas in Federal buildings should be preserved as an option where installation of natural gas applications would both reduce fossil fuel-generated energy consumption and increase energy efficiency. (AGA, No. 16 at p. 2) NAD commented that fuel cells can operate on natural gas until hydrogen E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules fuel storage becomes feasible, and suggested they should be addressed like CHP systems. (NAD, No. 19 at p. 3) AGA also commented that the calculation methodology correctly provides credit for the installation of on-site combined heat and power (CHP) systems, and suggested that DOE should promote these technologies within Federal buildings within the timeframes for which fossil fuel use is still permitted (i.e., before FY 2030). (AGA, No. 16 at p. 5) DHHS–IHS–OEHE supported not penalizing or discouraging the use of on-site sources. (DHHS, No. 24 at p. 5) DOD–N commented that distributed electrical power produced on-site should be credited with fossil fuel use avoidance for electricity sold into the grid. (DOD–N, No. 25B at p. 5) IDEA recommended the addition of eight definitions and amendment of the definition of ‘‘Proposed Design Fossil Fuel-Generated Energy Consumption’’ and the definition of ‘‘Direct Fossil Fuel Consumption.’’ (IDEA, No. 21 at pp. 3– 4) Based on the comments received and a technical review of the issues raised, DOE proposes specificity on how CHP and district heating systems should be considered. DOE believes that this specificity adds clarity and addresses the comments submitted. Under DOE’s proposal for district heating or cooling systems using fossil fuel as the source, the fossil fuel-generated energy consumption would be determined by adjusting the building load for the plant fuel conversion efficiency and estimated distribution losses as reflected in the ‘‘Other Fuels Energy Source Multiplier.’’ If a non-fossil fuel is used as the sole source (e.g., geothermal) of energy for the district heating system, there would be no contribution to fossil fuelgenerated energy consumption. For CHP district heating systems, the electricity attributed to the proposed building would be determined by multiplying the building’s pro-rated share of the total delivered heat from the system times the total electricity produced by the CHP system. For CHP systems serving only one building, fossil fuel consumption of the CHP system would be added to the direct fossil fuel consumption in Equation 1. Because it is produced from waste heat, the amount of electricity produced by either the CHP system serving a single building or a CHP district heating system, as determined above, would be deducted from the proposed design site electricity in Equation 1 under the renewable energy and CHP deduction. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 6. Additional Review Because of the complexity of some of the issues presented in the NOPR, two comments were submitted requesting an additional opportunity to review the rule before it is finalized, especially regarding the issues of climate zones and regional considerations. (NPGA, No. 23 at p. 5; DHHS, No. 24 at p. 1) This SNOPR provides an opportunity for additional comment on the proposed rulemaking, including the issues of climate zones and regional considerations. 7. Other DOE received a few additional comments relating to methodology that did not fit into one of the categories above. AGA and APGA asked DOE not to achieve reductions by encouraging Federal agencies to only use electricity supplied by nuclear energy rather than renewable energy. (AGA, No. 16 at p. 2; APGA, No. 17 at p. 6) The American Wood Council (AWC) commented that DOE should reference not only LEED as a tool for energy reductions, but also Green Globes and the National Association of Home Builders (NAHB) Standard. (AWC, No. 18 at p. 2) DOE notes that all nuclear power is produced by regulated utilities and there is no mechanism for utility customers to get credit for nuclear-generated electricity under today’s rule. There is currently no way for a non-utility to purchase nuclear-generated electric power as there is for electricity produced from renewable energy sources under arrangements like PPAs or RECs. However, DOE does recognize that onsite deployment of small modular reactors (SMRs) may be possible in the future and that some agencies may be in a position to rely on SMRs for energy. DOE requests comment on how the potential future use of on-site SMRs could be addressed in the final rule. DOE acknowledges that, to the extent LEED is referenced as a possible resource for fossil fuel reductions, it should have also referenced other green building rating systems (GBRS) such as Green Globes and the NAHB Green Standard. Although DOE has added these GBRS in the Reference Resources section below, DOE notes that these systems do not provide specific guidance that could help designers achieve the level of reductions called for in today’s rule. E. Petitions for Downward Adjustment Upon petition by an agency subject to the statutory requirements, ECPA permits DOE to adjust the applicable numeric fossil fuel-generated energy PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 61713 consumption percentage reduction requirement downward with respect to a specific building, if the head of the agency designing the building certifies in writing that meeting the requirement would be technically impracticable in light of the agency’s specified functional needs for the building and DOE concurs with the agency’s conclusion. (42 U.S.C. 6834(a)(3)(D)(i)(II)) ECPA further directs that such an adjustment does not apply to GSA. In today’s rulemaking, DOE proposes a downward adjustment process for new construction and separate processes for major renovations that are whole building renovations and for major renovations that are limited to system or component level renovations. 1. Technical Impracticability and Cost as a Basis for Downward Adjustment The NOPR noted that the downward adjustment provision of ECPA does not expressly include cost considerations, but that DOE was considering incorporating cost considerations as part of a ‘‘technically impracticable’’ determination. Cost would not be the sole rationale for a determination of ‘‘technically impracticable,’’ but high costs could be part of the evaluation. 75 FR 63412. DOE invited comments on what kind of technical impracticability would constitute grounds for a petition for downward adjustment. DOE received several comments about allowing costs (or cost-effectiveness) as grounds for a petition for downward adjustment. DOD–OUSOD and DOD–AF commented that life-cycle costeffectiveness should be the foundation for any finding of ‘‘technically impracticable.’’ (DOD–OUSOD, No. 25A at p. 1; DOD–AF, No. 25C at p. 7) NIBS commented that any petition invoking cost as a basis for technical impracticability should be based solely on life-cycle costs, not first costs. (NIBS, No. 12 at p. 4) AGA recommended that petitions should be ‘‘technologically feasible and economically justified’’ as the term is used in ECPA. It also recommended that cost-effectiveness be based on life-cycle cost-effectiveness of the relevant energy reduction measures. (AGA, No. 16 at p. 3) NRDC commented that DOE’s proposal to use ‘‘cost considerations’’ as part of the determination of what is ‘‘technically impracticable’’ is contrary to what NRDC reads as EISA’s plain language, and that DOE should not use cost impacts in any way to limit the application of the rule. (NRDC, No. 14 at p. 8) NRDC stated that by requiring these reductions in fossil fuel use regardless of costs, Congress was advancing a broader goal that goes beyond the reduction of fossil fuel use E:\FR\FM\14OCP2.SGM 14OCP2 61714 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 by Federal buildings, specifically that the Federal government will lead by example. (NRDC, No. 14 at p. 9) DOE understands the concern that achieving the reductions required by this rulemaking, especially in the outyears, could be difficult and expensive. DOE also appreciates the concern that allowing costs as the basis for a downward adjustment petition could result in many agencies requesting a petition simply based on cost. The statutory provision concerning a petition for downward adjustment states that agencies must demonstrate that meeting the reductions would be technically impracticable ‘‘in light of the agency’s specified functional needs for the building,’’ and does not mention cost. As a result, DOE does not believe that cost itself could be grounds for a downward adjustment. However, DOE believes that it would be appropriate and permissible to consider a petition for downward adjustment based on the impact to an agency’s functional needs for the building of achieving the fossil fuel-generated energy consumption reductions. DOE recognizes that an agency’s functional needs for a building may be inextricably linked with costs, but cost should not be the primary basis for a petition for downward adjustment. 2. Bundling of Petitions The bundling of petitions was not an issue addressed in the NOPR. However, three comments were submitted on whether an agency could submit a single petition for downward adjustment for multiple agency buildings of the same building type, rather than requiring a petition for each building separately, to minimize agency burden. (DOD–AF, No. 25C at p. 8; DOD–OUSOD, No. 25A at p. 1; DHHS, No. 24 at p. 6) DOE agrees that ‘‘bundling’’ of petitions by an agency for buildings of the same building type and function would help streamline the petitioning process and relieve the burden on agencies and DOE by avoiding duplication of effort. Although DOE would require an individual petition containing the information required under this proposed rule for each building, if the petitions for similar buildings are submitted jointly, a petition may reference the downward adjustment justification in another petition in the bundle. DOE is considering allowing agencies to bundle petitions for new buildings or whole renovations to buildings: (1) That are of the same building type and of similar size; (2) that are being designed and constructed to the same set of targets for fossil fuel-generated energy VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 consumption reduction; or (3) that would require similar measures to reduce fossil fuel-generated energy consumption and similar adjustment to the numeric reduction requirement. The bundled petitions should clearly state any differences between the buildings, and explain why the differences do not warrant the submission of separate evaluations. If an agency is designing a similar building for a different set of targets for fossil fuel-based energy consumption reduction that meets conditions (1) and (3) above, the agency would be required to submit a separate petition, but may include the evaluation for the previous building(s) as well as an explanation why that earlier evaluation should apply to the new building(s). For component-level major renovations, DOE is considering allowing bundling petitions that are of the same component and building type. DOE is accepting comment on the most efficient yet effective ways to bundle petitions. 3. DOE Review Process The NOPR stated that DOE will review petitions in a timely manner and if the petitioning agency has successfully demonstrated the need for a downward adjustment per the discussion above, DOE would concur with the agency’s conclusion and notify the agency in writing. If DOE does not concur, it would forward its reasons to the petitioning agency with suggestions as to how the fossil fuel-generated energy consumption percentage reduction requirement may be achieved. 75 FR 63412. Several comments were submitted about the DOE review process. EEI, ICC, DOD–OUSOD, and DOD–N requested information on how quickly the Secretary of Energy has to render a decision on a petition, and requested a timeline. (EEI, Public Meeting Transcript, No. 7 at p. 61; ICC, No. 11 at p. 3; DOD–OUSOD, No. 25A at p.1; DOD–N, No. 25B at p. 7) NRDC and DOD–OUSOD commented that DOE should establish procedures for reviewing and ruling on petitions for adjustments to ensure public transparency. (NRDC, No. 14 at p. 7; DOD–OUSOD, No. 25A at p. 1) DOD–N recommended that the rule should include where and how to submit petitions. (DOD–N, No. 25B at p. 7) DOE recognizes that agencies want assurance that DOE will respond to petitions in a timely manner to avoid project delays. For petitions for new construction, DOE proposes to notify an agency in writing within 90 days of submittal whether a petition for downward adjustment is approved or PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 rejected. If DOE rejects the petition, it would include its reasons for doing so in its response to the agency. Additionally for new construction, DOE proposes a provision under which DOE could establish an adjusted value other than the one presented in a petition if DOE finds that the petition does not support the conclusion of the submitting agency but that the statutorily required level was nonetheless technically impractical in light of the agency’s specific functional needs for the building. This provision is intended to provide flexibility in the petition process and reduce the need for agencies to resubmit in the instance of a rejection. Under the statute, the Secretary of Energy is tasked with deciding whether to grant a petition for downward adjustment and DOE believes that this authority also grants DOE the ability to propose alternative adjusted values if appropriate. For petitions for downward adjustments to the requirements applicable to major renovations, DOE proposes that the downward adjustment would be granted upon submission of specified certifications. The necessary certifications are discussed in greater detail further in this document. 4. Information Required in Petitions for New Construction The NOPR proposed that a petition for downward adjustment of the numeric requirement should include an explanation of what measures would be required to meet the fossil fuelgenerated energy consumption reduction requirement, and why those measures would be technically impracticable in light of the agency’s specified functional needs for the building. DOE also proposed that the petition should demonstrate that the adjustment requested by the agency represents the largest feasible reduction in fossil fuel-generated energy consumption that can reasonably be achieved. DOE solicited comments on those issues. 75 FR 63412. Several comments specifically asked what kind of information would be required for a petition. DOD–N recommended that DOE provide guidance regarding expected content of petitions and the minimum supporting information required for review and approval. (DOD–N, No. 25B at p. 7) NRDC recommended that DOE require that the agency provide in its petition any relevant information that is needed to understand and verify the agency’s conclusion and request, including information about the building’s specified functional needs. (NRDC, No. 14 at p. 12) NRDC thought the E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 requirement that a petition demonstrate that the requested adjustment is the largest feasible reduction in fossil fuelgenerated consumption that can be achieved represents a positive step. (NRDC, No. 14 at p. 8) NIBS suggested that the petitions include a description of all reasonable technologies and practices that were examined and ultimately rejected by the design team. (NIBS, No. 12 at p. 4) DOE agrees with these comments and is proposing provisions intended to provide more detailed petition requirements that would allow the Department to determine more comprehensively whether a downward adjustment would be allowable. DOE proposes a modified provision to require a demonstration that the requested adjustment represents the largest feasible fossil fuel reduction that can reasonably be achieved to include a demonstration that all life-cycle costeffective energy efficiency and on-site renewable energy measures were included in the design and a description of the technologies and practices that were evaluated and rejected, including a justification why they were not included. Finally, agencies would also be permitted to provide additional information they think will help justify the request for downward adjustment. Petitions would also be required to include the maximum allowable fossil fuel-generated energy consumption for the proposed building, the estimated fossil fuel-generated energy consumption of the proposed building, and a description of the building and the building energy systems. A description of the building would include, but would not be limited to, location, use type, floor area, stories, and functional needs of the building, and any other information the agency deems pertinent. The building energy systems to be described would include the building envelope, HVAC systems, lighting systems, service water heating system, and estimated receptacle and plug loads. This information should provide DOE the necessary information to review petitions, and help agencies ensure key questions and options are addressed in the design process. 5. Downward Adjustments for Major Renovations As noted previously, for major renovations DOE proposes that the fossil fuel reduction requirements apply only to the energy use associated with the portions of the building or building systems that are being renovated and only to the extent that the scope of the renovation provides an opportunity for compliance with the applicable fossil VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 fuel-generated energy consumption reduction requirements. DOE recognizes that the improved efficiencies that can be achieved through renovation may not provide sufficient reduction of fossil fuel-generated energy use for a major renovation to meet the interim requirements. Renovations are even less likely to achieve a 100 percentreduction, even in the limited context of the energy use associated with just the renovated system or component. As such, DOE expects that to the extent that renovations would be subject to the requirements, agencies would need to apply for downward adjustments. The SNOPR differs from the NOPR by establishing a separate section and separate requirements for downward adjustments for major renovations, and further delineates between major renovations that are whole building renovations and major renovations that are limited to system or component level retrofits (e.g., a lighting retrofit, a retrofit of a boiler or chiller). Whole building retrofits provide a greater opportunity for improved energy efficiency as compared to a system or component level retrofit, but generally neither type of retrofit would likely provide an opportunity to meet the fossil fuel reduction requirements. Recognizing the practical limitations on improving energy efficiency through retrofits, DOE proposes separate downward adjustment processes for major renovations. For major renovations that are whole building renovations, a downward adjustment would be provided at a level equal to the energy efficiency level that would be achieved were the proposed building designed to meet the energy efficiency standard applicable to new construction. As directed by ECPA, this downward adjustment would not apply to GSA, although DOE proposes that this adjustment would be available to GSA-tenant agencies with significant control over building design. The energy efficiency standards for new construction are established in 10 CFR part 433, for commercial and multifamily high-rise residential buildings, and 10 CFR part 435, for low-rise residential buildings. The energy efficiency standards require a building be designed to achieve the energy efficiency levels of the applicable referenced voluntary consensus code: ASHRAE 90.1 for commercial buildings multi-family high-rise residential buildings, and IECC for low-rise residential buildings. The energy efficiency standards for new Federal buildings further require that buildings be designed to achieve energy efficiency levels that are at least 30 percent beyond PO 00000 Frm 00023 Fmt 4701 Sfmt 4702 61715 the levels established in the referenced codes, if life-cycle cost-effective. As proposed, a building undergoing a whole building renovation would need to be designed to achieve the energy efficiency levels currently applicable only to new construction. DOE has preliminarily determined that achieving the specified level of energy efficiency for a major retrofit that is a whole building retrofit would represent the appropriate level of fossil fuel-generated energy reduction for the building efficiency that is also technically practicable. For major renovations that are limited to system or component level retrofits, DOE proposes to provide downward adjustments at a level equal to the energy efficiency level that would be achieved through the use of commercially available systems and/or components that provide a level of energy efficiency that is life-cycle cost effective. The energy efficiency requirement for system and component level renovations could be demonstrated by using the higher efficiency of the following, (1) ENERGY STAR or FEMP designated products, or (2) products that meet the energy efficiencies specified in ASHRAE 90.1 for systems and components in commercial buildings, or IECC for systems and components in residential buildings. In setting efficiency requirements, both FEMP and ENERGY STAR choose levels that are among the highest 25 percent of efficiency for a given product category. ENERGY STAR estimates that its program saves more than 200 billion kWh of electricity each year, and FEMP estimates that compliance with its efficiency requirements can save the government more than 30 trillion BTUs each year. Both programs have integrated life-cycle cost effectiveness into their guiding principles and, as such, Federal buyers can have confidence that required products have both good energy performance and a total cost of ownership that is equal to or less than products below set efficiencies. Prescriptive requirements of ASHRAE 90.1 and IECC demonstrate similarly high levels of efficiency. Together, these requirements cover more than 70 product types and will help ensure that the products used within Federal facilities are among the highest energy efficiencies available. Federal buildings that install and use these products will realize lower energy intensities compared to using noncompliant products. DOE requests comment on the considered approach as well as comment on other potential methods for E:\FR\FM\14OCP2.SGM 14OCP2 61716 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules processing requests related to major renovations. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 6. Make Information Publicly Available DOE received some comments that petitions for downward adjustment should be made publicly available on a DOE Web site. (NRDC, No. 14 at p. 11; Form letter, No. 29 at p. 1) This issue was not addressed in the NOPR. The Form Letter comments also stated that Federal agency compliance with today’s SNOPR should be made public. (Form letter, No. 29 at p. 1) Commenters stated that the reasons for making this information publicly available are that it would make the process transparent and hold agencies accountable and could reduce unsupported petitions. DOE appreciates the commenters concerns and supports transparency to the extent the Department can be transparent while also responding to petitions in a short timeframe so as not to delay building design and construction. As a result, DOE is proposing reporting petition summary level information in the DOE Annual Report to Congress on Federal Energy Management and Conservation Programs (See https://www.energy.gov/ about/budget.htm). 7. Narrow the Use of Petitions DOE received a few comments related to narrowing the use of petitions for downward adjustment. NRDC commented that in developing the test for technical impracticability and the standards for downward adjustment petitions, DOE must consider the statutory context of the EISA 2007 provision, which demonstrates that DOE should not craft a broad petition procedure that swallows the larger statutory requirement. (NRDC, No. 14 at p. 8) The Form Letter requested that DOE promulgate strict requirements that ensure that agency requests for fossil fuel reduction adjustments will be rarely granted, so that this process does not prevent the law from achieving its vital goal to cut government buildings’ greenhouse gas emissions dramatically. The Form Letter also urged DOE to strengthen the rule and apply it without exceptions and without loopholes. (Form letter, No. 29 at p. 1) DOE believes the changes it has proposed in this SNOPR would reduce the number of petitions submitted for downward adjustment and will improve the content of submitted petitions. DOE has expanded the number of building types covered in Tables 1–4 in Appendix A of part 433, and has a methodology for calculating the maximum allowable fossil fuelgenerated consumption values for VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 buildings with process loads. This is expected to greatly reduce the number of building types without baselines and fossil fuel reduction targets, eliminating a significant potential source of petitions. In addition, in response to some of the public comments received, this proposed rule is more specific about information to be provided as part of the petition process. Agencies requesting a petition would be required to: (1) Demonstrate that the requested adjustment represents the largest feasible fossil fuel reduction that can be achieved; (2) demonstrate that all costeffective energy efficiency and on-site renewable energy has been included in the proposed design; and (3) describe all technologies and practices that were evaluated and rejected, including a justification as to why they were not included in the design. The rule would require specific information about the energy efficiency and on-site renewable energy measures included in the proposed building design to enable DOE to evaluate the request for downward adjustment. 8. GSA Tenant Agencies The statute does not provide the General Services Administration (GSA) the option of petitioning DOE for a downward adjustment of the applicable percentage reduction requirement. (42 U.S.C. 6834(a)(3)(D)(i)(II)) In the NOPR, DOE proposed that a new Federal building or a Federal building undergoing major renovations for which a Federal agency is providing substantive and significant design criteria may be the subject of a petition. 75 FR 63412. Under this approach, DOE proposed that a GSA building that is designed to meet the specifications provided by a tenant agency may be considered for a downward adjustment if a petition is submitted by the head of the tenant agency. DOE received one comment on this issue. NRDC commented that allowing GSA tenant agencies to petition for downward adjustments contradicts the statute. (NRDC, No. 14 at p. 10) While the statute prohibits GSA from petitioning DOE for a downward adjustment, it makes no reference to GSA tenant agencies. DOE is continuing to propose that GSA tenant agencies that have significant control over building design may request a petition. In such cases, it would be the tenant agency, not GSA, that is making the design choices that would allow for compliance with the rule. Allowing GSA tenant agencies to submit a petition for downward adjustment would provide an option for some buildings for which the required fossil fuel reductions may be technically PO 00000 Frm 00024 Fmt 4701 Sfmt 4702 impracticable in light of the building’s functional needs, but for which GSA may not submit a petition. 9. Other DHHS–HIS–OEHE commented that consideration for what is technically impracticable should include remote locations that often have limited choices in available power utility companies. (DHHS, No. 24 at p. 6) DOE will consider remote locations and the availability of power utility companies in the petition process, but DOE also notes that the use of allowable, off-site renewable energy sources would help agencies meet their targets even in the case of remote buildings. F. Impacts of the Rule 1. Cost Impacts The NOPR provided a discussion of the expected costs of meeting the fossil fuel-generated energy consumption reduction requirements based on a study that DOE commissioned by PNNL in 2008 to look at the incremental costs of high performance buildings, and cost calculations for DOE work associated with the ASHRAE Advanced Energy Design Guides. DOE acknowledged that cost data for high performance buildings is fairly rare, and many times the costs for achieving high levels of energy efficiency are intermingled with the costs to achieve more sustainable design features. 75 FR 63410. Because of the limited data, DOE sought comment on cost impacts, especially any construction cost increases for buildings that Federal agencies are in the process of designing or have already built. DOE did not receive any comments providing additional specific cost information. EEI noted that the PNNL 2008 report stated that the cost data was very limited. (EEI, No. 10 at p. 8) NIBS stated that the focus on first costs is misplaced and should not be considered; DOE should focus on the overall life-cycle-cost of the requirements. (NIBS, No. 12 at p. 3) NRDC also stated that when analyzing cost impacts, DOE should look at lifecycle costs rather than increased first costs. (NRDC, No. 14 at p. 7) NRDC commented that past experience has shown that the cost of efficiency improvements tends to be lower than predicted and that the magnitude of increases in energy efficiency will often exceed expectations. In another comment, NRDC stated that the statute does not mention costs as one of the criteria for application of this rule; therefore, DOE should not use cost to limit the application of the rule. (NRDC, No. 14 at p. 6). E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules The AGA stated that the estimates should be based on actual quotes, not PNNL analyses or the ASHRAE Advanced Energy Design Guides. (AGA, No. 16 at p. 5) APGA states that EISA 2007 Section 433 strongly discourages any use of natural gas and subsidizes the growth of non fossil-fueled electricity generation, the vast majority of which will likely be produced offsite. APGA believes that, under this interpretation, EISA 2007 may reduce initial construction costs (relative to onsite generation) and massively increase life-cycle operating costs for utility services. (APGA, No. 17 at p. 6) NAD commented that the cost analysis described in the proposed rules showed up to an 8.7 percent cost increase for a simple building, but this will increase dramatically for more complex buildings, especially for buildings built in the later years when fossil fuel reductions near 100 percent. (NAD, No. 19 at p. 3) The DOD–AF commented that given the restrictive nature of the Military Construction Program (MILCON) funding process, it is not clear how the Air Force can implement a strategy to meet this requirement within the timeline discussed and whether there is a budget to implement this requirement while meeting current and future Air Force mission needs. (DOD–AF, No. 25C at p. 6). DOE agrees that it is prudent to consider cost-effectiveness of energy reduction measures. First costs, of course, are necessary to compute costeffectiveness. DOE notes, however, that per the statute, high first costs/poor cost-effectiveness are not an explicit consideration for today’s rulemaking. (See 42 U.S.C. 6834(a)(3)(D)). Nonetheless, DOE believes that minimizing costs to Federal agencies is a significant consideration, and DOE has designed this proposed rule to minimize costs and foster the most cost-effective approaches to meeting the statutorily mandated fossil fuel reductions. The baseline Federal building energy efficiency standards published in the past few years require agencies to design new Federal buildings to achieve energy consumption levels at least 30 percent below the levels of the baseline building built to ASHRAE Standard 90.1–2010, or the IECC 2009 (depending on the type of building), if life-cycle cost-effective. See 78 FR 40945 (July 9 2013); 76 FR 49279 (August 10, 2011). If achieving this consumption level is not life-cycle cost-effective, Federal agencies must, at a minimum, meet ASHRAE Standard 90.1–2007, or the IECC 2009 (depending on the type of building). Federal agencies are already required to incur the costs associated with meeting these VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 requirements. For new Federal buildings, it is only the additional first cost of achieving fossil fuel-generated consumption reductions beyond the energy efficiency improvements already required for new Federal buildings that would be attributable to this proposed rule. Beyond those pre-existing requirements, agencies have the option of implementing additional energy efficiency, on-site renewable energy, or acquiring off-site renewable energy in accordance with procedures described earlier. The rule provides agencies with some alternative ways to achieve the required fossil fuel reductions, and DOE expects that agencies will select the most cost-effective combination of these options. 2. Other Impacts DOE received several comments closely associated with cost impacts. A few commenters expressed concern that the rulemaking discourages or encourages the use of certain fuel types or other forms of energy without any consideration of the comparative efficiency and environmental impacts of optional fuel choices. (See AGA, No. 16 at p. 2; APGA, No. 17 at pp. 2–3). One commenter encouraged DOE to account for indirect social costs and another expressed concern that DOE might use the ‘‘social cost of carbon’’ in its cost/ benefit analysis for this rule (NRDC, No. 14 at p. 7; EEI, No. 10 at pp. 8–9). Several comments were submitted questioning the technical and fiscal feasibility of meeting today’s requirements, especially the 100 percent fossil fuel reduction requirement starting in FY 2030. (See AGA, No. 16 at p. 2; APGA, No. 17 at p. 2; NPGA, No. 23 at pp. 2, 4; GTI, No. 22 at p. 14; DOD–AF, No. 25C at p. 7; EEI, Public Meeting Transcript, No. 7 at p. 53) DOE acknowledges that achieving the reductions, especially the 100 percent reduction in 2030, will be challenging. However, the reductions mandated today are established by statute. DOE expects design practices and technologies will improve and costs will decrease in coming years, making it easier and less costly to achieve reductions through either energy efficiency or the use of on-site renewable energy. If the reductions are technically impracticable in light of the agency’s functional needs for the building after all of these provisions are implemented, as a last resort, Federal agencies (except for GSA) may petition the Secretary of Energy through the DOE’s Federal Energy Management Program (FEMP) Director for a downward adjustment to the numeric reduction requirement. PO 00000 Frm 00025 Fmt 4701 Sfmt 4702 61717 Finally, DOE received several comments broadly supporting DOE’s energy conservation and renewable energy efforts or other energy conservation or renewable energy efforts. Some of these comments supported or opposed the use of certain forms of renewable and fossil energy, others supported specific green building measures, and others encouraged green technology research. DOE actively supports the research and development of a wide range of forms of renewable energy and has chosen not to narrow the renewable energy deduction in this rule to only certain forms of renewable energy. Many of the suggestions made by commenters are currently being implemented by DOE. Executive Orders 13423 and 13514 require Federal agencies to implement sustainable practices, GSA has established an Office of High Performance Green Buildings, and ECPA, as amended by EISA, requires sustainable design principles be applied to all new Federal buildings and major renovations of Federal buildings (42 U.S.C. 6834(a)(3)). Elsewhere in this issue of the Federal Register, the green building certification portion of the Sustainable Design NOPR is published as a final rule. G. Guidance and Other Topics DOE requested specific comment in the NOPR on what additional training would help agencies meet the reductions called for by this statute. In addition to comments on that question, DOE received several unique comments as part of the Form Letter about alternative generation, green buildings, and transportation. 1. Training In the NOPR, DOE provided references to various tools to help agencies design new Federal buildings and major renovations to achieve the required fossil fuel reductions, and asked for comments on additional training or tools that might be helpful. 75 FR 63413. NIBS confirmed the importance of an experienced and well-trained design team. (NIBS, No. 12 at p. 4) AIA commented that improvement of energy modeling tools and creation of earlydesign phase tools is necessary. AIA mentioned the need to train architects, engineers and other building design professionals to meet these energy targets. They also mentioned the need to train building owners, facility managers and inhabitants on operations and maintenance. AIA also recommended examining tools being used for building analysis. (AIA, No. 15 at p. 2) DOD– OUSOD commented that additional E:\FR\FM\14OCP2.SGM 14OCP2 61718 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS2 training should cover reconciliation of force protection/security requirements with sustainable design. (DOD–OUSOD, No. 25A at p. 3) ICC endorsed the listing of resources including the International Green Construction Code and ASHRAE 189.1. (ICC, No. 11 at p. 3) NRDC commented that DOE should look at real data and survey other agencies to understand what would make the reduction requirement ‘‘technically impracticable’’ and look at the technology available now and consider the technology in development, to answer this question. This would allow DOE to target resources to assist agencies in meeting the requirements for future years, when greater reductions in fossil fuel usage will be required. (NRDC, No. 14 at p. 8) DOE agrees about the importance of training and tools to help improve the ease and effectiveness of designing highperformance buildings. DOE develops, and will continue to develop, tools and training. This will include looking at real data and surveying agencies on new technologies and experience with high performance building practices, including compliance with the fossil fuel reduction requirements. DOE agrees it is important to reconcile force protection/security requirements with energy and sustainable design considerations, and will work with agencies to do so. As FEMP did with the existing Federal building energy efficiency standards, FEMP plans to hold webcasts on the new Federal baseline energy efficiency standards, and today’s fossil fuel reduction rule. FEMP currently keeps all material related to the Federal standards at https://www1.eere.energy. gov/femp/regulations/notices_ rules.html. FEMP also has training available on all aspects of Federal energy management and conservation at https://apps1.eere.energy.gov/femp/ training. In addition to the tools identified in the NOPR and the FEMP tools listed above, DOE is also referencing additional resources in the next section of this document. 2. Verification and Monitoring NRDC recommended that a design verification and commissioning plan be part of the building design to help ensure the required reductions. They also suggested that a requirement be included for continued measurement and monitoring of Federal buildings with mandatory reporting and disclosure to the public. (NRDC, No. 14 at p. 16) DOE agrees that both building commissioning and verification of VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 performance are important to ensure buildings perform as designed to achieve the required fossil fuelgeneration energy consumption reductions. ECPA, however, provides that new Federal buildings and major renovations of Federal buildings shall be ‘‘designed’’ so that fossil fuelgenerated energy consumption is reduced. As such, the rulemaking only covers the building design, not postoccupancy. EISA section 432, however, requires that Federal agencies report and benchmark energy and water use for at least 75 percent of facility energy use. (42 U.S.C. 8253(f)) Agencies should refer to ‘‘Building Energy Use Benchmarking Guidance,’’ https://www1. eere.energy.gov/femp/regulations/ guidance.html, for information and guidance on these requirements. IV. Reference Resources DOE has prepared a list of resources to help Federal agencies address the reduction of fossil fuel-generated energy consumption. The final rule on energy efficiency published in the Federal Register on December 4, 2006 (71 FR 70275) contains some reference resources for energy efficiency improvement in building design. These resources come in many forms such as design guidance, case studies and in a variety of media such as printed documents or on Web sites. The resources for energy efficiency improvement will also provide guidance for fossil fuel-generated energy consumption reductions. DOE is adding to this list of resources to also include: • U.S. Department of Energy, Federal Energy Management Program. (www1.eere.energy.gov/femp). FEMP provides access to numerous resources and tools that can help Federal agencies improve the energy efficiency of new and existing buildings. • U.S. Department of Energy, Building Technologies Program. Database of high-performance buildings. (eere.buildinggreen.com). • FedCenter. High Performance Buildings. (www.fedcenter.gov/ programs/greenbuildings/). • American Society of Heating, Refrigerating, and Air-conditioning Engineers, Inc. ‘‘Advanced Energy Design Guides.’’ (https://www.ashrae. org/technology/page/938) and (https:// www1.eere.energy.gov/buildings/ commercial_initiative/guides.html). The ASHRAE ‘‘Advanced Energy Design Guides (AEDGs),’’ developed in cooperation with DOE and others, are a series of publications designed to provide recommendations for achieving energy savings 30 percent better than PO 00000 Frm 00026 Fmt 4701 Sfmt 4702 the minimum code requirements of ANSI/ASHRAE/IESNA 90.1–2004, and cover K–12 school buildings, small retail buildings, small office buildings, small hospitals and healthcare facilities, highway lodging, and small warehouses and self-storage buildings. Additional design guides aimed at establishing 50 percent energy savings over the minimum code requirements of ANSI/ ASHRAE/IESNA 90.1–2004 are being developed for small-to-medium office buildings, mid-box retail, highway lodging, K–12 schools, grocery/ supermarket, and quick-serve restaurants. • American Society of Heating, Refrigerating, and Air-conditioning Engineers, Inc. ANSI/ASHRAE/IESNA Standard 189.1 Standard for the Design of High-Performance Green Buildings. (www.ashrae.org/publications/page/ 927). • Tangherlini, Daniel, Administrator, General Services Administration, Letter to Secretary Ernest Moniz, U.S. Department of Energy, GSA recommendations and review of green building certification systems, October 25, 2013. (https://www.gsa.gov/portal/ content/131983?utm_source=OGP& utm_medium=print-radio&utm_term=gb certificationreview&utm_campaign= shortcuts). • National Institute of Building Sciences. ‘‘Whole Building Design Guide.’’ (www.wbdg.org). • International Code Council. ‘‘International Green Construction Code.’’ (www.iccsafe.org/cs/IGCC/ Pages/default.aspx). • Northwest Energy Efficiency Alliance, Better Bricks Commercial Building Initiative, (www.betterbricks.com). • Massachusetts High Performance Buildings Database. (mtc.buildinggreen.com). • New Buildings Institute. Buildings Database. (buildings.newbuildings.org). • Environmental Building News. BuildingGreen.com. (www.buildinggreen.com) (subscription required). V. Procedural Issues and Regulatory Review A. Review under Executive Orders 12866 and 13563 It has been determined that this regulatory action is a ‘‘economically significant regulatory action’’ under section 3(f)(1) of Executive Order 12866. Accordingly, section 6(a)(3) of the Executive Order requires that DOE prepare a regulatory impact analysis (RIA) on this proposed rule and that the Office of Information and Regulatory E:\FR\FM\14OCP2.SGM 14OCP2 61719 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules Affairs (OIRA) in the OMB review this proposed rule. DOE has also reviewed this regulation pursuant to Executive Order 13563, issued on January 18, 2011. 76 FR 3281 (January 21, 2011). EO 13563 is supplemental to and explicitly reaffirms the principles, structures, and definitions governing regulatory review established in Executive Order 12866. The RIA consists of: (1) A statement of the problem addressed by this regulation, and the mandate for government action; (2) a description and analysis of the feasible policy alternatives to this regulation; (3) a quantitative comparison of the impacts of the alternatives; and (4) the national economic impacts of the proposed standards. The RIA calculates the effects of feasible policy alternatives to mandatory standards for new Federal buildings and major renovations subject to the requirements, and provides a quantitative comparison of the impacts of the alternatives. DOE evaluated each alternative in terms of its ability to achieve significant energy savings at reasonable costs, and compared it to the effectiveness of the proposed rule. DOE identified the following major policy alternatives for achieving increased energy efficiency: • No new regulatory action; • ‘‘Zero fossil fuel’’ alternative of immediately requiring the lowest fossil fuel-generated energy consumption limits specified in the rule of zero fossil fuel usage; and • The proposed approach. DOE also considered certain nonregulatory policy alternatives such as tax credits, rebates, and labeling programs, and was unable to identify any non-regulatory policy alternatives that would be viable for Federal buildings. DOE evaluated the alternatives in terms of cost and energy savings. TABLE V–1—CONSTRUCTION COST INCREASES UNDER THE FOSSIL FUEL-REDUCTION RULE AND ‘‘ZERO FOSSIL FUEL’’ ALTERNATIVE (RELATIVE TO BASELINE ‘‘NO-ACTION’’ ALTERNATIVE) CALENDAR YEARS 2015–2044 Fossil fuel-reduction rule—high PV 1 cost scenario (2012 $million) Calendar year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. ................................................. 1 ‘‘PV’’ Fossil fuel-reduction rule—low PV cost scenario (2012 $million) $30 30 30 30 30 536 534 532 530 528 841 837 834 830 827 1,135 1,130 1,125 1,120 1,115 1,110 1,110 1,110 1,110 1,110 1,110 1,110 1,110 1,110 1,110 ‘‘Zero fossil fuel’’ alternative—high PV cost scenario (2012 $million) $30 30 30 30 30 447 435 424 413 402 618 601 585 569 554 736 716 696 677 658 640 640 640 640 640 640 640 640 640 640 ‘‘Zero fossil fuel’’ alternative—low PV cost scenario (2012 $million) $1,194 1,189 1,183 1,178 1,173 1,191 1,186 1,181 1,175 1,170 1,165 1,160 1,155 1,150 1,145 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 $1,136 1,103 1,071 1,040 1,010 1,005 976 949 922 896 871 847 824 801 778 757 757 757 757 757 757 757 757 757 757 757 757 757 757 757 references solar photovoltaic technologies. TABLE V–2—ANNUALIZED BENEFITS AND COSTS TO FEDERAL GOVERNMENT FOR NEW AND EXISTING CONSTRUCTION UNDER THE FOSSIL FUEL-REDUCTION RULE a Monetized (2012 $million/year) mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Discount rate Primary estimate b Low estimate b 349.2 ............... 606.7 ............... 46.0 ................. 178.6 ............... 270.6 ............... 550.9 ............... 336.1 ............... 580.1 ............... 46.0 ................. 178.6 ............... 270.6 ............... 550.9 ............... High estimate b Benefits Operating (Energy) Cost Savings .................................................... CO2 CO2 CO2 CO2 Reduction Reduction Reduction Reduction VerDate Sep<11>2014 at at at at $12.9/t c ............................................................... $40.8/t c ............................................................... $62.2/t c ............................................................... $117.0/t c ............................................................. 18:07 Oct 10, 2014 Jkt 235001 PO 00000 Frm 00027 7% ............................. 3% ............................. 5% ............................. 3% ............................. 2.50% ........................ 3% ............................. Fmt 4701 Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 468.9 841.4 46.0 178.6 270.6 550.9 61720 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE V–2—ANNUALIZED BENEFITS AND COSTS TO FEDERAL GOVERNMENT FOR NEW AND EXISTING CONSTRUCTION UNDER THE FOSSIL FUEL-REDUCTION RULEa—Continued Monetized (2012 $million/year) Discount rate 7% ............................. 3% ............................. 7% plus CO2 range ... 2.9 ................... 4.9 ................... 398 to 903 ...... 2.9 ................... 4.9 ................... 385 to 890 ...... 2.9 4.9 518 to 1023 530.7 ............... 790.2 ............... 658 to 1163 .... 517.6 ............... 763.6 ............... 631 to 1136 .... 650.4 1024.9 892 to 1397 479.4 ............... 574.6 ............... 572.6 ............... 695.6 ............... 386.3 453.5 7% plus CO2 range ... ¥28 to 477 ..... ¥188 to 317 ... 132 to 636 7% ............................. 3% ............................. 3% plus CO2 range ... Total (Operating Cost Savings, CO2 Reduction and NOX Reduction) d. Low estimate b 7% ............................. 3% ............................. 3% plus CO2 range ... NOX Reduction at $2,639/t c ............................................................ Primary estimate b 104.6 ............... 215.7 ............... 187 to 692 ...... ¥55.0 ............. 68.0 ................. ¥65 to 440 ..... 264.2 571.4 439 to 944 High estimate b Costs Incremental Purchase Price Increase .............................................. 7% ............................. 3% ............................. Net Benefits/Costs Total (Operating Cost Savings, CO2 Reduction and NOX Reduction, Minus Incremental Cost Increase to Buildings). a Incremental costs are calculated for buildings constructed or renovated in 2015–2044; total benefits extend through 2074. primary, low, and high estimates utilize forecasts of energy prices from the Annual Energy Outlook 2013 reference case. The low and high cases were based upon the percentage price deviations from the Annual Energy Outlook 2013 reference case as provided in the Low Economic Growth case and High Economic Growth case, respectively. c These values represent global values (in 2012$) of the social cost of CO (SCC) emissions in 2013 under several scenarios developed by the 2 Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value ($2,639) of the low ($468) and high ($4,809) values was used. d Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NO and CO emissions calX 2 culated at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$). b The Primary, low, and high estimates of the benefits and costs were developed to indicate the possible range of these metrics. The future energy prices used to compute operating cost savings for the primary estimate were taken from the Annual Energy Outlook 2013 reference case. The low estimate combines slightly lower energy prices as compared to the reference case along with the construction cost developed as part of the high-cost PV case (used for incremental construction cost). Alternatively, the high estimate combines higher energy prices relative to the reference case along with the construction cost developed as part of the low-cost PV case. The average incremental construction cost based upon the high-cost PV case and the lowcost PV case was used as the primary estimate of incremental construction cost. TABLE V–3—ANNUALIZED BENEFITS AND COSTS TO THE FEDERAL GOVERNMENT FOR NEW AND EXISTING CONSTRUCTION UNDER THE ‘‘ZERO FOSSIL FUEL’’ ALTERNATIVE a Monetized (2012 $million/year) Discount rate Primary estimate b Low estimate b High estimate b 7% ............................. 3% ............................. 5% ............................. 3% ............................. 2.50% ........................ 3% ............................. 7% ............................. 3% ............................. 601.4 ............... 1076.6 ............. 68.6 ................. 257.9 ............... 388.0 ............... 793.2 ............... 4.8 ................... 7.1 ................... 583.1 ............... 893.6 ............... 68.6 ................. 257.9 ............... 388.0 ............... 793.2 ............... 4.8 ................... 7.1 ................... 781.2 1259.6 68.6 257.9 388.0 793.2 4.8 7.1 7% 7% 3% 3% 675 to 1399 .... 864.1 ............... 1341.6 ............. 1152 to 1877 .. 657 to 1381 .... 845.8 ............... 1158.6 ............. 969 to 1694 .... 855 to 1579 1043.8 1524.7 1335 to 2060 Benefits mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Operating (Energy) Cost Savings .................................................... CO2 Reduction at $12.9/t c ............................................................... CO2 Reduction at $40.8/t c ............................................................... CO2 Reduction at $62.2/t c ............................................................... CO2 Reduction at $117.0/t c ............................................................. NOX Reduction at $2,639/t c ............................................................ Total (Operating Cost Savings, CO2 Reduction and NOX Reduction) d. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 PO 00000 Frm 00028 Fmt 4701 plus CO2 range ... ............................. ............................. plus CO2 range ... Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 61721 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE V–3—ANNUALIZED BENEFITS AND COSTS TO THE FEDERAL GOVERNMENT FOR NEW AND EXISTING CONSTRUCTION UNDER THE ‘‘ZERO FOSSIL FUEL’’ ALTERNATIVE a—Continued Monetized (2012 $million/year) Discount rate High estimate b Primary estimate b Low estimate b 1043.8 ............. 1021.6 ............. 1167.0 ............. 1161.1 ............. 920.6 882.2 ¥288 to 436 ... ¥99.0 ............. 320.0 ............... 131 to 855 ...... ¥510 to 214 ... ¥321.2 ........... ¥2.5 ............... ¥192 to 533 ... ¥66 to 659 123.2 642.5 453 to 1178 Costs Incremental Purchase Price Increase .............................................. 7% ............................. 3% ............................. Net Benefits/Costs Total (Operating Cost Savings, CO2 Reduction and NOX Reduction, Minus Incremental Cost Increase to Buildings). 7% 7% 3% 3% plus CO2 range ... ............................. ............................. plus CO2 range ... a Incremental costs are calculated for buildings constructed or renovated in 2014–2044; total benefits extend through 2074. footnote (b) for Table 2. c These values represent global values (in 2012$) of the social cost of CO (SCC) emissions in 2012 under several scenarios developed by the 2 Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value ($2,639) of the low ($468) and high ($4,809) values was used. d Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NO and CO emissions calX 2 culated at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$). b See mstockstill on DSK4VPTVN1PROD with PROPOSALS2 The net benefits in 2010 dollars to the Federal government using the primary estimate for PV system costs turns out to be $104.6 million/year using the 7% discount rate, while it is $215.7 million/ year using the 3% discount rate for the fossil fuel reduction rule (Table V–2), while the corresponding figures are negative $99.0 million/year using the 7% discount rate and positive $320 million/year using the 3% discount rate for the ‘‘zero fossil fuel’’ alternative to the rule (Table V–3). B. Review Under the Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the preparation of an initial regulatory flexibility analysis for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. As required by Executive Order 13272, Proper Consideration of Small Entities in Agency Rulemaking, 67 FR 53461 (August 16, 2002), DOE published procedures and policies on February 19, 2003, to ensure that the potential impacts of its rules on small entities are properly considered during the rulemaking process (68 FR 7990). The Department has made its procedures and policies available on the Office of General Counsel’s Web site: https:// energy.gov/gc/guidance-opinions-0 . This proposed rulemaking applies only to the fossil fuel-generated energy consumption of new Federal buildings and Federal buildings undergoing major VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 renovation. As such, the only entities directly regulated by this rulemaking would be Federal agencies. DOE does not believe that there will be any impacts on small entities such as small businesses, small organizations, or small governmental jurisdictions. On the basis of the foregoing, DOE certifies that this proposed rule would not have a significant economic impact on a substantial number of small entities. Accordingly, DOE has not prepared a regulatory flexibility analysis for this rulemaking. DOE’s certification and supporting statement of factual basis will be provided to the Chief Counsel for Advocacy of the Small Business Administration pursuant to 5 U.S.C. 605(b). C. Review Under the Paperwork Reduction Act of 1995 This rulemaking will impose no new information or record keeping requirements. Accordingly, Office of Management and Budget (OMB) clearance is not required under the Paperwork Reduction Act. (44 U.S.C. 3501 et seq.) D. Review Under the National Environmental Policy Act of 1969 DOE prepared an draft Environmental Assessment (EA) (DOE/EA–1778) entitled, ‘‘Environmental Assessment for Proposed Rulemaking, 10 CFR parts 433 and 435, ‘Fossil Fuel-Generated Energy Consumption Reduction for New Federal Buildings and Major Renovations of Federal Buildings,’’ pursuant to the Council on Environmental Quality’s (CEQ) PO 00000 Frm 00029 Fmt 4701 Sfmt 4702 Regulations for Implementing the Procedural Provisions of the National Environmental Policy Act (40 CFR parts 1500–1508), the National Environmental Policy Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et seq.), and DOE’s NEPA Implementing Procedures (10 CFR part 1021). The draft EA addresses the possible environmental effects attributable to the implementation of the today’s rule. The rule by its fundamental intent has a positive impact on the environment. The only anticipated impact of today’s rulemaking would be a decrease in outdoor air pollutants resulting from reduced fossil fuel-generated energy consumption in new Federal buildings and major renovations of Federal buildings. E. Review Under Executive Order 13132, ‘‘Federalism’’ Executive Order 13132, ‘‘Federalism,’’ 64 FR 43255 (August 4, 1999), imposes certain requirements on agencies formulating and implementing policies or regulations that preempt State law or that have Federalism implications. The Executive Order requires agencies to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the States and to carefully assess the necessity for such actions. The Executive Order also requires agencies to have an accountable process to ensure meaningful and timely input by State and local officials in the development of regulatory policies that have Federalism implications. On March 14, 2000, DOE published a E:\FR\FM\14OCP2.SGM 14OCP2 61722 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules statement of policy describing the intergovernmental consultation process it will follow in the development of such regulations. (65 FR 13735). DOE examined this rulemaking and determined that it would not preempt State law and would not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of Government. No further action is required by Executive Order 13132. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 F. Review Under Executive Order 12988, ‘‘Civil Justice Reform’’ With respect to the review of existing regulations and the promulgation of new regulations, section 3(a) of Executive Order 12988, ‘‘Civil Justice Reform,’’ 61 FR 4729 (February 7, 1996), imposes on Federal agencies the general duty to adhere to the following requirements: (1) Eliminate drafting errors and ambiguity; (2) write regulations to minimize litigation; and (3) provide a clear legal standard for affected conduct, rather than a general standard and promote simplification and burden reduction. Section 3(b) of Executive Order 12988 specifically requires that Executive agencies make every reasonable effort to ensure that the regulation: (1) Clearly specifies the preemptive effect, if any; (2) clearly specifies any effect on existing Federal law or regulation; (3) provides a clear legal standard for affected conduct, while promoting simplification and burden reduction; (4) specifies the retroactive effect, if any; (5) adequately defines key terms; and (6) addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of Executive Order 12988 requires Executive agencies to review regulations in light of applicable standards in section 3(a) and section 3(b) to determine whether they are met or it is unreasonable to meet one or more of them. DOE has completed the required review and determined that, to the extent permitted by law, this rulemaking meets the relevant standards of Executive Order 12988. G. Review Under the Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104–4) requires each Federal agency to assess the effects of Federal regulatory actions on State, local, and tribal governments and the private sector. For a proposed regulatory action likely to result in a rule that may cause the expenditure by State, local, and tribal VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 governments, in the aggregate, or by the private sector of $100 million or more in any one year (adjusted annually for inflation), section 202 of UMRA requires a Federal agency to publish a written statement that estimates the resulting costs, benefits, and other effects on the national economy. (2 U.S.C. 1532(a) and (b)) The UMRA also requires a Federal agency to develop an effective process to permit timely input by elected officers of State, local, and tribal governments on a proposed ‘‘significant intergovernmental mandate,’’ and requires an agency plan for giving notice and opportunity for timely input to potentially affected small governments before establishing any requirements that might significantly or uniquely affect small governments. On March 18, 1997, DOE published a statement of policy on its process for intergovernmental consultation under UMRA (62 FR 12820) (also available at https://energy.gov/gc/guidance-opinions0). This rulemaking contains neither an intergovernmental mandate nor a mandate that may result in the expenditure of $100 million or more in any year by State, local, and tribal governments, in the aggregate, or by the private sector so these requirements under the Unfunded Mandates Reform Act do not apply. H. Review Under the Treasury and General Government Appropriations Act of 1999 Section 654 of the Treasury and General Government Appropriations Act of 1999 (Pub. L. 105–277) requires Federal agencies to issue a Family Policymaking Assessment for any rule that may affect family well-being. This supplemental proposed rule would not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has preliminarily concluded that it is not necessary to prepare a Family Policymaking Assessment. I. Review Under Executive Order 12630, ‘‘Governmental Actions and Interference With Constitutionally Protected Property Rights’’ The Department has determined, under Executive Order 12630, ‘‘Governmental Actions and Interference with Constitutionally Protected Property Rights,’’ 53 FR 8859 (March 18, 1988), that this rule would not result in any takings which might require compensation under the Fifth Amendment to the United States Constitution. PO 00000 Frm 00030 Fmt 4701 Sfmt 4702 J. Review Under the Treasury and General Government Appropriations Act, 2001 Section 515 of the Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516, note) provides for agencies to review most disseminations of information to the public under guidelines established by each agency pursuant to general guidelines issued by OMB. OMB’s guidelines were published at 67 FR 8452 (February 22, 2002), and DOE’s guidelines were published at 67 FR 62446 (October 7, 2002). DOE has reviewed this rulemaking under the OMB and DOE guidelines and has preliminarily concluded that it is consistent with applicable policies in those guidelines. K. Review Under Executive Order 13211, ‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use’’ Executive Order 13211, ‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,’’ 66 FR 28355 (May 22, 2001), requires Federal agencies to prepare and submit to the Office of Information and Regulatory Affairs (OIRA), Office of Management and Budget, a Statement of Energy Effects for any proposed significant energy action. A ‘‘significant energy action’’ is defined as any action by an agency that promulgated or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (3) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. This rulemaking would not have a significant adverse effect on the supply, distribution, or use of energy. Moreover, as the rulemaking would result in increased building energy efficiency, it would not have a significant adverse effect on energy. For these reasons, the rulemaking is not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects. E:\FR\FM\14OCP2.SGM 14OCP2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules § 433.1 L. Review Under the Information Quality Bulletin for Peer Review In consultation with the Office of Science and Technology Policy (OSTP), OMB issued on December 16, 2004, its ‘‘Final Information Quality Bulletin for Peer Review’’ (the Bulletin). 70 FR 2664 (January 14, 2005). The Bulletin establishes that certain scientific information shall be peer reviewed by qualified specialists before it is disseminated by the Federal government, including influential scientific information related to agency regulatory actions. The purpose of the Bulletin is to enhance the quality and credibility of the government’s scientific information. Under the Bulletin, EIA’s CBECS and RECS are ‘‘influential scientific information,’’ which the Bulletin defines as ‘‘scientific information that the agency reasonably can determine will have or does have a clear and substantial impact on important public policies or private sector decisions.’’ 70 FR 2664, 2667 (January 14, 2005). The Academy recommendations have been peer reviewed pursuant to section II.2 of the Bulletin. Both surveys are peer reviewed internally within EIA and other DOE offices before they are published. In addition, both surveys are subject to public comment that EIA addresses before finalizing CBECS and RECS. List of Subjects in 10 CFR Parts 433 and 435 Buildings and facilities, Energy conservation, Engineers, Federal buildings and facilities, Fossil fuel reductions, Housing, Incorporation by reference, Multi-family residential buildings. Issued in Washington, DC, on September 28, 2014. David Danielson, Assistant Secretary, Energy Efficiency and Renewable Energy. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 For the reasons set forth in the preamble, DOE proposes to amend chapter II of title 10 of the Code of Federal Regulations as set forth below: PART 433—ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND CONSTRUCTION OF NEW FEDERAL COMMERCIAL AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS 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. 2. In § 433.1, paragraph (b) is added to read as follows: ■ VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 Purpose and scope. * * * * * (b) This part also establishes a maximum allowable fossil fuelgenerated energy consumption standard for new Federal buildings that are commercial and multi-family high-rise residential buildings and major renovations to Federal buildings that are commercial and multi-family high-rise residential buildings, for which design for construction began on or after October 14, 2015. * * * * * ■ 3. In § 433.2: ■ a. Add in alphabetical order, the definitions of ‘‘Combined heat and power (CHP) system,’’ ‘‘Construction cost,’’ ‘‘District energy system,’’ ‘‘Fiscal year (FY),’’ ‘‘Major renovation,’’ ‘‘Multifamily high-rise residential building,’’ ‘‘Power purchase agreement (PPA),’’ and ‘‘Renewable energy certificate’’; ■ b. Revise the definitions of ‘‘New Federal building’’ and ‘‘Proposed building’’; and ■ c. Remove the definitions of ‘‘Lifecycle cost’’ and ‘‘Life-cycle costeffective’’. The additions and revisions read as follows: § 433.2 Definitions. * * * * * Combined heat and power (CHP) system means an integrated system, located at or near a building or facility that is used to generate both heat and electricity for use in the building or facility. * * * * * Construction cost means all costs associated with design and construction of a building. It includes the cost of design, permitting, construction (materials and labor), and building commissioning. It does not include legal or administrative fees, or the cost of acquiring the land. * * * * * District energy system means a central energy conversion plant and transmission and distribution system that provides thermal energy to a group of buildings (heating via hot water or steam, and/or cooling via chilled water). This definition only includes thermal energy systems; central energy supply systems that only provide electricity are excluded from this definition. * * * * * Fiscal year (FY) begins on October 1 of the year prior to the specified calendar year and ends on September 30 of the specified calendar year. * * * * * Major renovation means changes to a building that provide significant PO 00000 Frm 00031 Fmt 4701 Sfmt 4702 61723 opportunities for compliance with other applicable requirements in this part. For subpart B—reduction in fossil fuelrelated energy consumption, for example, replacement of the HVAC system, lighting system, building envelope, or other components of the building that have a major impact on energy usage would constitute a major renovation. Multi-family high-rise residential building means a residential building that contains 3 or more dwelling units and that is designed to be 4 or more stories above grade. New Federal building means any new building (including a complete replacement of an existing building from the foundation up) to be constructed by, or for the use of, any Federal agency. Such term shall include buildings built for the purpose of being leased by a Federal agency, and privatized military housing. Power purchase agreement means an agreement with an electricity producer for all or a specified portion of the electricity produced from a particular power source, in this case a renewable energy source, for a specified period of time. * * * * * Proposed Building means the design for construction of a new Federal commercial or multi-family high-rise residential building, or major renovation to a Federal commercial multi-family high-rise residential building, proposed for construction. * * * * * Renewable energy certificate means the technology and environmental (nonenergy) attributes that represent proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable energy resource, and can be sold separately from the underlying generic electricity with which it is associated. ■ 4. Revise § 433.3(b)(3) to read as follows: § 433.3 Materials incorporated by reference. * * * * * (b) * * * (3) ANSI/ASHRAE/IESNA 90.1–2010, (‘‘ASHRAE 90.1–2010’’), Energy Standard for Buildings Except Low-Rise Residential Buildings, I–P Edition, Copyright 2010, IBR approved for §§ 433.2, 433.100, 433.101, Appendix A to subpart B. ■ 5. Revise § 433.4 to read as follows: § 433.4 Life-cycle cost-effective. Except as specified in subparts A, B or C of this part, Federal agencies shall determine life-cycle cost-effectiveness E:\FR\FM\14OCP2.SGM 14OCP2 61724 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules by using the procedures set out in subpart A of part 436 of this chapter. A Federal agency may choose to use any of four methods, including life-cycle cost, net savings, savings-to-investment ratio, and adjusted internal rate of return using the discount rate published in the annual supplement to the Life Cycle Costing Manual for the Federal Energy Management Program (NIST 85– 3273). ■ 6. Subpart B is added to part 433 to read as follows: Subpart B—Reduction in Fossil FuelGenerated Energy Consumption Sec. 433.200 Fossil fuel-generated energy consumption requirement. 433.201 Fossil fuel-generated energy consumption determination. 433.202 Petition for downward adjustment. Appendix A to Subpart B of Part 433— Maximum Allowable Fossil Fuel-Generated Energy Consumption Subpart B—Reduction in Fossil FuelGenerated Energy Consumption mstockstill on DSK4VPTVN1PROD with PROPOSALS2 § 433.200 Fossil fuel-generated energy consumption requirement. (a) New Federal buildings. New Federal buildings that are commercial and multi-family high rise residential buildings, for which design for construction began on or after October 14, 2015, must be designed to meet the requirements of paragraphs (c) or (d) of this section, as applicable, if: (1) The subject building is a public building as defined in 40 U.S.C. 3301 and for which transmittal of a prospectus to Congress is required under 40 U.S.C. 3307; or (2) The cost of the building is at least $2,500,000 (in 2007 dollars, adjusted for inflation). (b) Major renovations. (1) Major renovations to Federal buildings that are commercial and multi-family high-rise residential buildings, for which design for construction began on or after October 14, 2015, must be designed to meet the requirements of paragraph (c) or (d) of this section, as applicable, if: (i) The renovation is a major renovation to a public building as defined in 40 U.S.C. 3301 and for which transmittal of a prospectus to Congress is required under 40 U.S.C. 3307; or (ii) The cost of the major renovation is at least $2,500,000 (in 2007 dollars, adjusted for inflation). (2) This subpart applies only to the portions of the proposed building or proposed building systems that are being renovated and to the extent that the scope of the renovation permits compliance with the applicable requirements in this subpart. Unaltered VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 portions of the proposed building or proposed building systems are not required to comply with this subpart. (3) For leased buildings, this subpart applies to major renovations only if the building was originally built for the use of any Federal agency, including being leased by a Federal agency. (c) Federal buildings that are of the type included in Appendix A of this subpart—(1) Design for construction began during fiscal year 2014 through fiscal year 2029. The fossil fuelgenerated energy consumption of the proposed building, based on the building design and calculated according to § 433.201(a), must not exceed the value identified in Tables 1– 4 of Appendix A of this subpart for the associated building type, climate zone, and fiscal year in which design for construction began. (2) Design for construction began during or after fiscal year 2030. The fossil fuel-generated energy consumption of the proposed building, based on building design and calculated according to § 433.201(a), must be zero. (3) Mixed-use buildings. (i) For buildings that combine two or more building types identified in Tables 1–4 of Appendix A of this subpart, the maximum allowable fossil fuelgenerated energy consumption of the proposed building is equal to the averaged applicable building type values in Tables 1–4 weighted by floor area of the present building types. (ii) For example, if a proposed building for which design for construction began in FY2014 that is to be built in climate zone 1 has a total of 200 square feet—100 square feet of which qualifies as College/University and 100 square feet of which qualifies as Laboratory—the maximum allowable fossil fuel-generated energy consumption is equal to: [(100 sqft. × 89 kBtu/yr.-sqft.) + (100 sqft × 251 kBtu/yr.-sqft.)]/200 sqft. = 170 kBtu/yr.-sqft. (d) Federal buildings that are of the type not included in Appendix A of this subpart—(1) Process load buildings. For building types that are not included in any of the building types listed in Tables 1–4 of Appendix A of this subpart, Federal agencies must select the applicable building type, climate zone, and fiscal year in which design for construction began from Tables 1–4 of Appendix A of this subpart that most closely corresponds to the proposed building without the process load. The estimated fossil fuel-generated energy consumption of the process load must be added to the maximum allowable fossil fuel-generated energy PO 00000 Frm 00032 Fmt 4701 Sfmt 4702 consumption of the applicable building type for the appropriate fiscal year and climate zone to calculate the maximum allowable fossil fuel-generated energy consumption for the building. The same estimated fossil fuel-generated energy consumption of the process load that is added to the maximum allowable fossil fuel-generated energy consumption of the applicable building must also be used in determining the fossil fuelgenerated energy consumption of the proposed building. (2) Mixed-use buildings. For buildings that combine two or more building types with process loads or, alternatively, that combine one or more building types with process loads with one or more building types in Tables 1– 4 of Appendix A of this subpart, the maximum allowable fossil fuelgenerated energy consumption of the proposed building is equal to the averaged process load building values determined under paragraph (d)(1) of this section and the applicable building type values in Tables 1–4 of Appendix A of this subpart, weighted by floor area. § 433.201 Fossil fuel-generated energy consumption determination. (a) The fossil fuel-generated energy consumption of a proposed building is calculated as follows: Equation 1: Fossil fuel-generated energy consumption = ((3.412 kBtu/kwh × Fossil Fuel Generation Factor × (Proposed Building Site Electricity Consumption—Renewable Energy and CHP Electricity Deduction)/Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of Proposed Building × Other Fuels Source Energy Multiplier))/Floor Area Whereas: (1) Fossil Fuel-Generation Factor is equal to (AEPcoal+AEPpl+AEPpc+AEPng+AEPog)/ Total AEP Where AEP = annual electrical production pl = petroleum liquids pc = petroleum coke ng = natural gas og = other gas All values are taken from Table 3.2.A of the EIA Electric Power Annual Report, which is updated on a periodic basis. DOE will on an annual basis calculate the Fossil Fuel Generation Factor and publish the result at the following Web address: https://energy. gov/eere/femp/federal-energymanagement-program. (2) Proposed Building Site Electricity Consumption equals the estimated site electricity consumption of the proposed E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules building calculated in accordance with the Performance Rating Method in Appendix G of ASHRAE 90.1–2010 (incorporated by reference; see § 433.3) measured in kilowatt hours per year (kWh/yr). (3) Renewable Energy and CHP Electricity Deduction equals the total contribution specified in paragraph (b) of this section, measured in kilowatt hours per year (kWh/yr). (4) Electricity Source Energy Factor. For electricity purchased from the grid, the Electricity Source Energy Factor is equal to 0.316. For on-site electrical generation, the Electricity Source Factor is the estimated efficiency of the generating equipment and any estimated distribution losses that may occur. (5) Direct Fossil Fuel Consumption of Proposed Building equals the total site fossil fuel consumption of the proposed building calculated in accordance with the Performance Rating Method in Appendix G of ASHRAE 90.1–2010 (incorporated by reference; see § 433.3), excluding fossil fuel consumption for electricity generation, and measured in thousands of British thermal units per year (kBtu/yr). This includes any fossil fuel consumption attributable to nonelectric power (e.g., heat or steam) used in a proposed building that is supplied by a district energy system or CHP system. (6) Other Fuels Source Energy Multiplier. For purposes of Equation 1, the multipliers are as follows: Natural gas 1.046 Fuel oil 1.00 Propane 1.00 District steam (non-CHP) 1.35 District steam (CHP) 2.30 District hot water 1.28 Chilled water 1.05 Coal 1.00 (7) Floor Area is the area enclosed by the exterior walls of a building, both finished and unfinished, including indoor parking facilities, basements, hallways, lobbies, stairways, and elevator shafts. (b) Renewable and CHP electricity deductions—(1) Renewable electricity. The following renewable electricity generation qualifies as a deduction under paragraph (a) of this section to the extent that the renewable electricity generation represents new electric generating capacity or a new renewable energy obligation on the part of the agency, and not a reassignment of existing capacity or obligations: (i) On-site renewable electricity generation is the amount of electricity measured in kilowatt hours per year (kWh/yr) to be consumed by the building that is contributed by VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 renewable electricity generated at the Federal site or facility on which the building will be located. On-site renewable electricity can only be deducted if the environmental attributes are not transferred. (ii) Off-site renewable electricity generation is the amount of renewable electricity measured in kilowatt hours per year (kWh/yr) generated at a site or facility, either Federal or non-federal, other than the Federal site or facility on which the building will be located and that is designated for the purpose of complying with this section, and may include renewable electricity generation purchased under Power Purchase Agreements and Renewable Energy Certificates. (2) Limitation on the use of renewable electricity generation for new Federal buildings and major renovations. The environmental attributes of the renewable electricity generation must not be transferred. The agency must ensure that the environmental attributes of renewable electricity generation are dedicated to meeting the fossil fuelgenerated energy consumption reduction requirements of the proposed building. (3) CHP deduction. Electricity associated with non-electric power provided to a proposed building by a district energy system that is a CHP system or an on-site CHP system qualifies as a deduction under paragraph (a) of this section and is equal to the total heat delivered to the proposed building from the direct energy system divided by total heat produced by the CHP system, times the total electricity produced by the CHP system. § 433.202 Petition for downward adjustment. (a) New Federal buildings. (1) Upon petition by a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over building design, the Director of the Federal Energy Management Program may adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific building, upon written certification from the head of the agency designing the building, or the head of a GSA-tenant agency, that the requested adjustment is the largest feasible reduction in fossil fuel-generated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by: (i) A statement sealed by the design engineer that the proposed building was PO 00000 Frm 00033 Fmt 4701 Sfmt 4702 61725 designed in accordance with the applicable energy efficiency requirement in Subpart A of this Part; (ii) A description of the technologies and practices that were evaluated and rejected, including a justification of why they were not included in the design for construction; and (iii) Any other information the agency determines would help explain its request; (2) The head of the agency designing the building, or the head of a GSAtenant agency, must also include the following information in the petition: (i) A general description of the building, including but not limited to location, use type, floor area, stories, and functional needs; (ii) The maximum allowable fossil fuel-generated energy consumption for the building from Tables 1–4 of Appendix A of this subpart; (iii) The estimated fossil fuelgenerated energy consumption of the proposed building; (iv) A description of the proposed building’s energy-related features, including but not limited to: (A) Building envelope, including, but not limited to, construction materials, insulation levels, and the type, area, heat loss and solar heat gain and visible light transmission coefficients of windows and other glazing; (B) HVAC system type and configuration; (C) HVAC equipment sizes and efficiencies; (D) Ventilation systems (including outdoor air volume, controls technique, heat recovery systems, and economizers, if applicable); (E) Service water heating system configuration and equipment (including solar hot water, wastewater heat recovery, and controls for circulating hot water systems, if applicable); (F) Lighting technology, interior lighting power, and lighting control techniques; (G) Estimated process and plug loads; and (H) Any other energy-related equipment; and (3) The Director of the Federal Energy Management Program may concur in whole or in part with a petition. Upon concurring in part, the Director of the Federal Energy Management Program will establish an applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific building other than the value put forth in the petition. (4) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to: E:\FR\FM\14OCP2.SGM 14OCP2 61726 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules specific major renovation limited to a building system or component, upon written certification from the head of the agency designing the building, or the head of a GSA-tenant agency, that the requested adjustment is the largest feasible reduction in fossil fuelgenerated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by a statement stamped by the design engineer that the proposed building incorporates commercially available systems and/or components that provide a level of energy efficiency that is life-cycle cost effective. (3) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to: U.S. Department of Energy, Federal Energy Management Program, Director, Fossil Fuel Reductions in New Federal Buildings, EE–2L, 1000 Independence Ave. SW., Washington, DC 20585–0121. (4) The downward adjustment for a major renovation will be deemed approved upon submittal of the certification required in paragraphs (b)(1) or (b)(2) of this section, as applicable. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 U.S. Department of Energy, Federal Energy Management Program, Director, Fossil Fuel Reductions in New Federal Buildings, EE–2L, 1000 Independence Ave. SW., Washington, DC 20585–0121. (5) The Director will notify the requesting agency in writing whether the petition for downward adjustment to the numeric reduction requirement is approved, in whole or in part, or rejected, within 90 days of submittal. If the Director rejects the petition or establishes a value other than that presented in the petition, the Director will forward its reasons for rejection to the petitioning agency. (b) Major renovations to Federal buildings. (1) Major renovation of the whole building. Upon petition by a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over renovation design, the Director of the Federal Energy Management Program will adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific major renovation of a whole building, upon written certification from the head of the agency designing the building, or the head of a GSAtenant agency, that the requested adjustment is the largest feasible reduction in fossil fuel-generated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by a statement stamped by the design engineer that the proposed building was designed consistent with the energy efficiency requirement in subpart A of this part that corresponds to the date of the proposed building. (2) Major renovation of a building system or component. Upon petition by a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over renovation design, the Director of the Federal Energy Management Program will adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a Appendix A to Subpart B of Part 433— Maximum Allowable Fossil FuelGenerated Energy Consumption (a) For purposes of the tables in this Appendix, the climate zones for each county in the United States are those listed in Normative Appendix B Building Envelope Climate Criteria, Table B–1 U.S. Climate Zones, ASHRAE 90.1–2010 (incorporated by reference; see § 433.3). (b) For purpose of Appendix A, the following definitions apply: Education means a category of buildings used for academic or technical classroom instruction, such as elementary, middle, or high schools, and classroom buildings on college or university campuses. Buildings on education campuses for which the main use is not as a classroom are included in the category relating to their use. For example, administration buildings are part of ‘‘Office,’’ dormitories are ‘‘Lodging,’’ and libraries are ‘‘Public Assembly.’’ Food Sales means a category of buildings used for retail or wholesale of food. For example, grocery stores are ‘‘Food Sales.’’ Food Service means a category of buildings used for preparation and sale of food and beverages for consumption. For example, restaurants are ‘‘Food Service.’’ Health Care (Inpatient) means a category of buildings used as diagnostic and treatment facilities for inpatient care. Health Care (Outpatient) means a category of buildings used as diagnostic and treatment facilities for outpatient care. Medical offices are included here if they use any type of diagnostic medical equipment (if they do not, they are categorized as an office building). Laboratory means a category of buildings equipped for scientific experimentation or research as well as other technical, analytical and administrative activities. Lodging means a category of buildings used to offer multiple accommodations for shortterm or long-term residents, including skilled nursing and other residential care buildings. Mercantile (Enclosed and Strip Malls) means a category of shopping malls comprised of multiple connected establishments. Multi-Family High-Rise Residential Buildings means a category of residential buildings that contain 3 or more dwelling units and that is designed to be 4 or more stories above grade. Office means a category of buildings used for general office space, professional office, or administrative offices. Medical offices are included here if they do not use any type of diagnostic medical equipment (if they do, they are categorized as an outpatient health care building). Public Assembly means a category of public or private buildings, or spaces therein, in which people gather for social or recreational activities. Public Order and Safety means a category of buildings used for the preservation of law and order or public safety. Religious Worship means a category of buildings in which people gather for religious activities, (such as chapels, churches, mosques, synagogues, and temples). Retail (Other Than Mall) means a category of buildings used for the sale and display of goods other than food. Service means a category of buildings in which some type of service is provided, other than food service or retail sales of goods. Warehouse and Storage means a category of buildings used to store goods, manufactured products, merchandise, raw materials, or personal belongings (such as self-storage). TABLE 1—FY2013–FY2014 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building type Education ............... VerDate Sep<11>2014 College/university 18:07 Oct 10, 2014 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 97 146 Fossil fuel-generated energy use intensity 89 Jkt 235001 88 PO 00000 87 81 Frm 00034 59 Fmt 4701 84 Sfmt 4702 71 73 65 E:\FR\FM\14OCP2.SGM 70 77 14OCP2 65 92 82 61727 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 1—FY2013–FY2014 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS—Continued [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building type Education ............... Education ............... Education ............... Education ............... Food Sales ............. Food Sales ............. Food Sales ............. Food Food Food Food Sales ............. Service .......... Service .......... Service .......... Inpatient Health Care. Laboratory .............. Lodging .................. Lodging .................. Lodging .................. Lodging .................. Lodging .................. Mercantile .............. Mercantile .............. Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Outpatient Health Care. Outpatient Health Care. Public Assembly ..... Public Assembly ..... Public Assembly ..... mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Public Assembly ..... Public Assembly ..... Public Order & Safety. Public Order & Safety. Religious Worship .. Retail (except malls). Retail (except malls). Retail (except malls). Service ................... Service ................... Service ................... Service ................... Service ................... Warehouse ............. Warehouse ............. Warehouse ............. VerDate Sep<11>2014 Elementary/middle school. High school ........... Other classroom education. Preschool/daycare Convenience store Convenience store with gas. Grocery store/food market. Other food sales ... Fast food ............... Other food service Restaurant/cafeteria. Hospital/inpatient health. Laboratory ............. Dormitory/fraternity/sorority. Hotel ..................... Motel or inn ........... Nursing home/assisted living. Other lodging ........ Enclosed mall ....... Strip shopping mall Administrative/profess. office. Bank/other financial. Government office Medical office (non-diagnostic). Mixed-use office ... Other office ........... Clinic/other outpatient health. Medical office (diagnostic). Entertainment/culture. Library ................... Other public assembly. Recreation ............ Social/meeting ...... Fire station/police station. Other public order and safety. Religious worship Other retail ............ 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 54 54 52 49 40 50 45 41 39 39 42 37 47 43 48 71 65 36 65 36 63 35 59 33 43 24 61 34 52 29 53 30 48 27 51 29 56 31 48 27 67 37 60 33 71 40 106 59 70 194 156 69 215 173 67 208 167 63 197 158 52 178 144 65 213 171 58 189 152 53 164 132 50 173 139 51 181 146 54 166 133 47 153 124 60 181 145 56 200 161 62 199 160 92 259 209 162 179 173 164 149 177 158 137 144 151 138 128 150 167 166 216 49 378 112 204 54 395 117 214 52 402 118 216 50 358 106 195 45 333 97 177 54 407 120 219 48 338 100 183 41 303 90 164 44 323 96 175 46 327 98 180 42 308 91 166 39 286 84 154 46 339 100 182 50 373 110 202 50 375 111 203 65 490 144 264 205 210 215 182 188 212 174 142 149 156 129 120 133 146 137 163 251 58 254 61 247 61 233 62 197 42 245 63 217 56 196 58 190 53 192 59 203 65 184 55 229 76 216 70 238 84 320 118 71 80 118 73 76 12 70 76 117 67 66 110 62 63 93 70 73 115 68 65 103 55 52 93 57 54 90 57 52 91 57 52 96 55 50 87 62 57 108 62 55 102 64 56 112 74 68 151 76 81 85 56 73 81 85 58 72 79 83 57 63 77 81 54 60 58 61 43 69 78 82 56 62 68 72 47 50 69 72 46 52 64 67 43 50 66 69 44 50 77 81 48 48 67 70 42 54 91 96 54 53 84 89 50 54 99 104 57 65 143 150 80 80 82 80 77 62 79 67 65 61 62 67 59 77 71 81 114 70 48 72 49 71 48 67 46 54 37 70 48 59 40 57 39 54 37 55 37 59 40 52 36 68 46 62 42 71 48 100 68 65 54 72 67 56 70 65 55 70 63 52 63 50 42 60 65 54 70 54 45 56 53 44 48 50 42 50 51 42 46 55 46 45 48 40 44 63 52 47 58 48 48 66 55 45 93 78 52 48 46 47 42 40 46 38 32 33 31 30 30 32 32 30 35 33 33 32 30 26 32 28 26 25 25 26 24 30 28 31 42 86 40 87 40 85 39 80 37 68 31 84 39 75 34 68 31 65 30 66 30 70 32 63 29 79 36 74 34 82 38 110 51 37 39 92 38 39 93 37 38 91 35 36 86 29 31 73 36 38 90 32 34 80 29 30 72 28 29 70 29 30 71 30 31 75 27 28 68 34 35 84 32 33 80 35 37 88 47 49 118 84 85 83 78 66 82 73 66 64 65 68 62 77 73 80 107 33 70 33 72 32 70 31 68 26 50 32 69 29 59 26 60 25 56 25 56 27 66 24 58 30 79 28 73 31 85 42 123 Retail store ........... 40 41 40 39 28 39 34 34 32 32 38 33 45 42 49 71 Vehicle dealership showroom. Other service ........ Post office/postal center. Repair shop .......... Vehicle service/repair shop. Vehicle storage/ maintenance. Distribution/shipping center. Non-refrigerated warehouse. Refrigerated warehouse. 71 72 70 68 50 69 59 60 56 57 67 58 79 73 85 123 85 60 86 61 84 59 79 56 65 47 83 59 71 52 67 47 63 45 64 46 69 49 66 44 76 55 70 52 81 57 104 77 40 46 40 47 39 46 37 43 31 36 39 45 34 39 32 37 30 34 30 35 33 38 31 36 36 42 33 38 38 44 49 57 20 20 20 19 15 20 17 16 15 15 16 16 18 17 19 25 18 23 24 26 14 26 20 27 24 23 35 32 49 41 59 108 9 11 11 13 7 12 9 13 12 11 17 15 24 20 29 52 97 100 102 90 81 101 80 75 78 79 74 68 82 89 90 123 17:40 Oct 10, 2014 Jkt 235001 PO 00000 Frm 00035 Fmt 4701 Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 61728 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 1—FY2013–FY2014 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS—Continued [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3B coast 3A Building type Residential ............. Multi-family highrise residential. 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 55 72 Fossil fuel-generated energy use intensity 48 46 39 41 24 40 28 41 37 41 45 38 52 46 TABLE 2—FY2015–FY2019 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone Education ............... Education ............... College/university Elementary/middle school. High school ........... Other classroom education. Preschool/daycare Convenience store Convenience store with gas. Grocery store/food market. Other food sales ... Fast food ............... Other food service Restaurant/cafeteria. Hospital/inpatient health. Laboratory ............. Dormitory/fraternity/. sorority .................. Hotel ..................... Motel or inn ........... Nursing home/assisted living. Other lodging ........ Enclosed mall ....... Strip shopping mall Administrative/profess. office. Bank/other financial. Government office Medical office (non-diagnostic). Mixed-use office ... Other office ........... Clinic/other outpatient health. Medical office (diagnostic). Entertainment/culture. Library ................... Other public assembly. Recreation ............ Social/meeting ...... Fire station/police station. Other public order and safety. Religious worship Other retail ............ 1 2A 2B 3A 3B coast Building type Education ............... Education ............... Education ............... Food Sales ............. Food Sales ............. Food Sales ............. Food Food Food Food Sales ............. Service .......... Service .......... Service .......... Inpatient Health Care. Laboratory .............. Lodging .................. Lodging .................. Lodging .................. Lodging .................. Lodging .................. Mercantile .............. Mercantile .............. Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Outpatient Health Care. Outpatient Health Care. Public Assembly ..... mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Order & Safety. Public Order & Safety. Religious Worship .. Retail (except malls). Retail (except malls). VerDate Sep<11>2014 Retail store ........... 17:40 Oct 10, 2014 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 69 42 69 42 67 40 63 38 46 31 65 39 55 35 56 32 51 30 55 31 60 32 51 29 71 36 64 34 76 37 113 56 51 28 50 28 49 28 46 26 34 19 48 27 40 23 41 23 37 21 40 22 44 24 37 21 52 29 47 26 55 31 83 46 55 151 122 54 167 135 52 161 130 49 153 123 40 139 112 50 165 133 45 147 119 41 128 103 39 134 108 39 141 113 42 129 104 37 119 96 47 140 113 43 156 125 48 155 125 72 202 163 126 139 135 127 116 138 123 106 112 117 107 99 117 130 129 168 38 294 87 159 42 307 91 166 41 313 92 168 39 279 83 151 35 259 75 138 42 317 93 170 37 263 78 143 32 235 70 128 34 251 74 136 36 255 76 140 32 239 71 129 30 222 66 120 35 264 78 142 39 290 86 157 39 292 86 158 51 381 112 206 159 164 167 142 146 165 136 111 116 121 100 93 103 113 107 127 195 45 197 48 192 47 182 48 153 32 190 49 169 44 153 45 148 41 150 46 158 50 143 43 178 59 168 54 185 65 249 92 56 62 92 57 59 93 54 59 91 52 52 86 48 49 72 55 57 90 53 51 80 43 41 72 44 42 70 44 41 71 44 41 75 43 39 67 48 44 84 48 43 79 49 44 87 58 53 117 59 63 66 44 56 63 66 45 56 62 65 44 49 60 63 42 47 45 47 34 54 61 64 43 49 53 56 36 39 53 56 36 40 50 52 33 39 51 54 34 39 60 63 37 37 52 54 32 42 71 74 42 41 66 69 39 42 77 81 44 51 111 117 63 62 64 62 60 48 62 52 51 48 49 52 46 60 55 63 89 55 37 56 38 55 37 52 36 42 29 54 37 46 31 45 30 42 29 43 29 46 31 40 28 53 36 48 33 55 38 78 53 51 42 56 52 44 54 51 43 55 49 41 49 39 33 46 50 42 54 42 35 44 41 35 37 39 32 39 40 33 36 43 36 35 38 31 35 49 41 37 45 37 37 51 43 35 72 60 40 37 36 36 32 31 36 29 25 26 24 23 23 25 25 23 27 25 26 25 24 20 25 22 20 19 20 21 19 23 22 24 32 67 31 68 31 66 30 62 29 53 24 65 30 58 27 53 24 51 23 51 24 54 25 49 23 61 28 58 27 64 29 86 39 29 30 72 29 31 73 29 30 71 27 28 67 23 24 56 28 29 70 25 26 62 23 24 56 22 23 54 22 23 55 23 24 58 21 22 53 26 28 66 25 26 62 27 29 68 37 38 92 65 66 65 61 51 64 57 51 50 50 53 48 60 56 62 83 26 55 26 56 25 55 24 53 20 39 25 53 22 46 20 47 19 44 20 44 21 52 19 45 23 61 22 57 24 66 33 96 31 32 31 30 22 31 26 27 25 25 30 26 35 32 38 55 Jkt 235001 PO 00000 Frm 00036 Fmt 4701 Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 61729 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 2—FY2015–FY2019 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS—Continued [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3B coast 3A Building type Retail (except malls). Service ................... Service ................... Service ................... Service ................... Service ................... Warehouse ............. Warehouse ............. Warehouse ............. Residential ............. Vehicle dealership showroom. Other service ........ Post office/postal center. Repair shop .......... Vehicle service/repair shop. Vehicle storage/ maintenance. Distribution/shipping center. Non-refrigerated warehouse. Refrigerated warehouse. Multi-family highrise residential. 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 55 56 55 53 39 54 46 47 44 44 52 45 62 57 66 96 66 47 67 47 65 46 61 43 51 37 64 46 55 40 52 37 49 35 50 36 54 38 51 34 59 43 55 40 63 44 81 60 31 36 31 36 31 36 29 34 24 28 30 35 26 30 25 28 23 27 23 27 25 29 24 28 28 33 26 30 30 34 38 44 16 16 15 15 12 15 13 12 12 12 13 12 14 13 15 19 14 18 18 20 11 20 15 21 19 18 27 25 38 32 46 84 7 8 9 10 5 10 7 10 9 9 13 12 18 15 22 41 76 78 79 70 63 78 62 58 61 61 58 53 64 69 70 96 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56 TABLE 3—FY2020–FY2024 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building type Education ............... Education ............... Education ............... Education ............... Education ............... Food Sales ............. Food Sales ............. Food Sales ............. Food Food Food Food Sales ............. Service .......... Service .......... Service .......... Inpatient Health Care. Laboratory .............. Lodging .................. Lodging .................. Lodging .................. Lodging .................. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Lodging .................. Mercantile .............. Mercantile .............. Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Outpatient Health Care. Outpatient Health Care. VerDate Sep<11>2014 College/university Elementary/middle school. High school ........... Other classroom education. Preschool/daycare Convenience store Convenience store with gas. Grocery store/food market. Other food sales ... Fast food ............... Other food service Restaurant/cafeteria. Hospital/inpatient health. Laboratory ............. Dormitory/fraternity/sorority. Hotel ..................... Motel or inn ........... Nursing home/assisted living. Other lodging ........ Enclosed mall ....... Strip shopping mall Administrative/profess. office. Bank/other financial. Government office Medical office (non-diagnostic). Mixed-use office ... Other office ........... Clinic/other outpatient health. Medical office (diagnostic). 17:40 Oct 10, 2014 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 40 24 39 24 39 23 36 22 26 18 37 22 32 20 32 18 29 17 31 17 34 19 29 16 41 21 36 19 43 21 65 32 29 16 29 16 28 16 26 15 19 11 27 15 23 13 24 13 21 12 23 13 25 14 21 12 30 17 27 15 32 18 47 26 31 86 70 31 95 77 30 92 74 28 87 70 23 39 64 29 95 76 26 84 68 24 73 59 22 77 62 23 81 65 24 74 59 21 68 55 27 80 65 25 89 72 28 88 71 41 115 93 72 80 77 73 66 79 70 61 64 67 61 57 67 74 74 96 22 168 50 91 24 175 52 95 23 179 52 96 22 159 47 86 20 148 43 79 24 181 53 97 21 150 45 81 18 135 40 73 19 144 42 78 20 146 44 80 19 137 40 74 17 127 37 69 20 151 44 81 22 166 49 90 22 167 49 90 29 218 54 117 91 94 95 81 83 94 77 63 66 69 57 53 59 65 61 73 112 26 113 27 110 27 104 27 88 19 109 28 97 25 87 26 84 23 86 26 90 29 82 24 102 34 96 31 106 37 142 52 32 36 53 33 34 53 31 34 52 30 29 49 27 28 41 31 32 51 30 29 46 25 23 41 25 24 40 25 23 40 25 23 43 24 22 39 28 25 48 28 25 45 28 25 50 33 30 67 34 36 38 25 32 36 38 26 32 35 37 25 28 34 36 24 27 26 27 19 31 35 36 25 28 30 32 21 22 31 32 20 23 29 30 19 22 29 31 20 22 34 36 21 21 30 31 19 24 41 43 24 23 37 39 22 24 44 46 25 29 63 67 36 35 37 36 34 27 35 30 29 27 28 30 26 34 31 36 51 31 21 32 22 31 21 30 20 24 16 31 21 26 18 26 17 24 16 24 17 26 18 23 16 30 21 28 19 32 21 45 30 29 24 32 30 25 31 29 24 31 28 23 28 22 19 26 29 24 31 24 20 25 24 20 21 22 18 22 23 19 20 24 20 20 21 18 20 28 23 21 26 21 21 29 24 20 41 35 23 21 21 21 19 18 21 17 14 15 14 13 13 14 14 13 15 Jkt 235001 PO 00000 Frm 00037 Fmt 4701 Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 61730 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 3—FY2020–FY2024 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS—Continued [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3B coast 3A Building type Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Order & Safety. Public Order & Safety. Religious Worship .. Retail (except malls). Retail (except malls). Retail (except malls). Service ................... Service ................... Service ................... Service ................... Service ................... Warehouse ............. Warehouse ............. Warehouse ............. Residential ............. 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity Entertainment/culture. Library ................... Other public assembly. Recreation ............ Social/meeting ...... Fire station/police station. Other public order and safety. Religious worship Other retail ............ 15 15 14 14 11 14 13 11 11 11 12 11 13 13 14 19 38 18 39 18 38 17 36 16 30 14 37 17 33 15 30 14 29 13 29 14 31 14 28 13 35 16 33 15 36 17 49 23 17 17 41 17 17 41 16 17 40 15 16 38 13 14 32 16 17 40 14 15 36 13 13 32 13 13 31 13 13 32 13 14 33 12 13 30 15 16 38 14 15 35 16 16 39 21 22 52 37 38 15 31 15 32 37 35 29 36 32 29 28 29 30 27 34 32 35 48 14 31 14 30 12 22 14 30 13 26 11 27 11 25 11 25 12 30 11 26 13 35 13 32 14 38 19 55 Retail store ........... 18 18 18 17 14 17 15 15 14 14 17 15 20 19 22 31 Vehicle dealership showroom. Other service ........ Post office/postal center. Repair shop .......... Vehicle service/repair shop. Vehicle storage/ maintenance. Distribution/shipping center. Non-refrigerated warehouse. Refrigerated warehouse. Multi-family highrise residential. 31 32 31 30 22 31 26 27 25 25 30 26 35 32 38 55 38 27 38 27 37 26 35 25 29 21 37 26 32 23 30 21 28 20 28 20 31 22 29 20 34 24 31 23 36 25 46 34 18 21 18 21 18 20 17 19 14 16 17 20 15 17 14 16 13 15 13 16 14 17 14 16 16 19 15 17 17 20 22 25 9 9 9 8 7 9 8 7 7 7 7 7 8 7 9 11 8 10 11 12 6 11 9 12 11 10 16 14 22 18 26 48 4 5 5 6 3 6 4 6 5 5 8 7 11 9 13 23 43 45 45 40 36 45 36 33 35 35 33 30 36 39 40 55 21 20 17 18 11 18 12 18 16 18 20 17 23 21 24 32 TABLE 4—FY2025–FY2029 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building type Education ............... Education ............... Education ............... Education ............... Education ............... Food Sales ............. Food Sales ............. mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Food Sales ............. Food Food Food Food Sales ............. Service .......... Service .......... Service .......... Inpatient Health Care. Laboratory .............. Lodging .................. Lodging .................. Lodging .................. Lodging .................. Lodging .................. VerDate Sep<11>2014 College/university Elementary/middle school. High school ........... Other classroom education. Preschool/daycare Convenience store Convenience store with gas. Grocery store/food market. Other food sales ... Fast food ............... Other food service Restaurant/cafeteria. Hospital/inpatient health. Laboratory ............. Dormitory/fraternity/sorority. Hotel ..................... Motel or inn ........... Nursing home/assisted living. Other lodging ........ 17:40 Oct 10, 2014 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 20 12 20 12 19 12 18 11 13 9 19 11 16 10 16 9 15 9 16 9 17 9 14 8 20 10 18 10 22 11 32 16 14 8 14 8 14 8 13 7 10 5 14 8 12 6 12 7 11 6 11 6 13 7 11 6 15 8 13 7 16 9 24 13 16 43 35 15 48 38 15 46 37 14 44 35 12 40 32 14 47 38 13 42 34 12 36 29 11 38 31 11 40 32 12 37 30 11 34 27 13 40 32 12 44 36 14 44 36 20 58 46 36 40 38 36 33 39 35 30 32 34 31 28 33 37 37 48 11 84 25 45 12 88 26 48 12 89 26 48 11 80 24 43 10 74 21 39 12 90 27 49 11 75 22 41 9 67 20 36 10 72 21 39 10 73 22 40 9 68 20 37 9 63 19 34 10 75 22 41 11 83 25 45 11 83 25 45 15 109 32 59 45 47 48 41 42 47 39 32 33 35 29 27 29 32 30 36 56 13 56 14 55 14 52 14 44 9 54 14 48 13 44 13 42 12 43 13 45 14 41 12 51 17 48 16 53 19 71 26 16 18 26 16 17 27 15 17 26 15 15 24 14 14 21 16 16 26 15 15 23 12 12 21 13 12 20 13 12 20 13 12 21 12 11 19 14 13 24 14 12 23 14 12 25 17 15 34 17 16 16 14 13 15 14 11 12 11 11 11 12 12 12 14 Jkt 235001 PO 00000 Frm 00038 Fmt 4701 Sfmt 4702 E:\FR\FM\14OCP2.SGM 14OCP2 61731 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 4—FY2025–FY2029 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, COMMERCIAL BUILDINGS AND MULTI-FAMILY HIGH-RISE RESIDENTIAL BUILDINGS—Continued [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building type Mercantile .............. Mercantile .............. Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Office ...................... Outpatient Health Care. Outpatient Health Care. Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Assembly ..... Public Order & Safety. Public Order & Safety. Religious Worship .. Retail (except malls). Retail (except malls). Retail (except malls). Service ................... Service ................... Service ................... Service ................... Service ................... Warehouse ............. Warehouse ............. Warehouse ............. Residential ............. Enclosed mall ....... Strip shopping mall Administrative/profess. office. Bank/other financial. Government office Medical office (non-diagnostic). Mixed-use office ... Other office ........... Clinic/other outpatient health. Medical office (diagnostic). Entertainment/culture. Library ................... Other public assembly. Recreation ............ Social/meeting ...... Fire station/police station. Other public order and safety. Religious worship Other retail ............ 4B 4C 5A 5B 6A 6B 7 8 18 19 13 18 18 13 17 18 12 13 13 10 17 18 12 15 16 10 15 16 10 14 15 10 15 15 10 17 18 11 15 16 9 20 21 12 19 20 11 22 23 13 32 33 18 18 18 18 17 14 18 15 15 14 14 15 13 17 16 18 25 16 11 16 11 16 11 15 10 12 8 16 11 13 9 13 9 12 8 12 8 13 9 12 8 15 10 14 9 16 11 22 15 14 12 16 15 12 15 15 12 16 14 12 14 11 9 13 14 12 15 12 10 13 12 10 11 11 9 11 11 9 10 12 10 10 11 9 10 14 12 11 13 11 11 15 12 10 21 17 12 11 10 10 9 9 10 8 7 7 7 7 7 7 7 7 8 7 7 7 7 6 7 6 6 5 6 6 5 7 6 7 9 19 9 19 9 19 9 18 8 15 7 19 9 17 8 15 7 15 7 15 7 16 7 14 6 18 8 17 8 18 8 24 11 8 9 21 8 9 21 8 8 20 8 8 19 6 7 16 8 8 20 7 7 18 6 7 16 6 7 16 6 7 16 7 7 17 6 6 15 8 8 19 7 7 18 8 8 19 11 11 26 19 19 18 17 15 18 16 15 14 14 15 14 17 16 18 24 7 16 7 16 7 16 7 15 6 11 7 15 6 13 6 13 6 12 6 13 6 15 5 13 7 18 6 16 7 19 9 27 Retail store ........... 9 9 9 9 6 9 8 8 7 7 8 7 10 9 11 16 Vehicle dealership showroom. Other service ........ Post office/postal center. Repair shop .......... Vehicle service/repair shop. Vehicle storage/ maintenance. Distribution/shipping center. Non-refrigerated warehouse. Refrigerated warehouse. Multi-family highrise residential. 16 16 16 15 11 15 13 13 13 13 15 13 18 16 19 27 19 13 19 13 19 13 18 12 14 10 18 13 16 12 15 10 14 10 14 10 15 11 15 10 17 12 16 12 18 13 23 17 9 10 9 10 9 10 8 10 7 8 9 10 7 9 7 8 7 8 7 8 7 8 7 8 8 9 7 9 8 10 11 13 4 5 4 4 3 4 4 4 3 3 4 3 4 4 4 6 4 5 5 6 3 6 4 6 5 5 8 7 11 9 13 24 2 2 3 3 1 3 2 3 3 3 4 3 5 4 6 12 22 22 23 20 18 22 18 17 17 18 16 15 18 20 20 27 11 10 9 9 5 9 6 9 8 9 10 9 11 10 12 16 7. The authority citation for part 435 continues to read as follows: mstockstill on DSK4VPTVN1PROD with PROPOSALS2 4A 18 19 12 ■ Authority: 42 U.S.C. 6831–6832; 6834– 6836; 42 U.S.C. 8253–54; 42 U.S.C. 7101 et seq. 8. In § 435.1, paragraph (b) is added to read as follows: ■ Purpose and scope. * * * * * (b) This part also establishes a maximum allowable fossil fuel- VerDate Sep<11>2014 3C Fossil fuel-generated energy use intensity PART 435—ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND CONSTRUCTION OF NEW FEDERAL LOW-RISE RESIDENTIAL BUILDINGS § 435.1 3B other 17:40 Oct 10, 2014 Jkt 235001 generated energy consumption standard for new Federal buildings that are lowrise residential buildings and major renovations to Federal buildings that are low-rise residential buildings, for which design for construction began on or after October 14, 2015. ■ 9. In § 435.2: ■ a. Add in alphabetical order, the definitions of ‘‘Combined heat and power (CHP) system,’’ ‘‘Construction cost,’’ ‘‘District energy system,’’ ‘‘Fiscal year (FY),’’ ‘‘Major renovation,’’ ‘‘Power purchase agreement,’’ and ‘‘Renewable energy certificate’’; PO 00000 Frm 00039 Fmt 4701 Sfmt 4702 b. Revise the definitions of ‘‘New Federal building’’ and ‘‘Proposed building’’; and ■ c. Remove the definitions of ‘‘Lifecycle cost’’ and ‘‘Life-cycle costeffective’’. The additions and revisions read as follows: ■ § 435.2 Definitions. * * * * * Combined heat and power (CHP) system means an integrated system, located at or near a building or facility, that is used to generate both heat and electricity for use in the building or facility. E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 61732 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules Construction cost means all costs associated with design and construction of a building. It includes the cost of design, permitting, construction (materials and labor), and building commissioning. It does not include legal or administrative fees, or the cost of acquiring the land. * * * * * District energy system means a central energy conversion plant and transmission and distribution system that provides thermal energy to a group of buildings (heating via hot water or steam, and/or cooling via chilled water). This definition only includes thermal energy systems; central energy supply systems that only provide electricity are excluded from this definition. * * * * * Fiscal Year (FY) begins on October 1 of the year prior to the specified calendar year and ends on September 30 of the specified calendar year * * * * * Major renovation means changes to a building that provide significant opportunities for compliance with applicable requirements in this part. For subpart B —reduction in fossil fuelrelated energy consumption, for example, replacement of the HVAC system, lighting system, building envelope, or other components of the building that have a major impact on energy usage would constitute a major renovation. New Federal building means any new building (including a complete replacement of an existing building from the foundation up) to be constructed by, or for the use of, any Federal agency. Such term shall include buildings built for the purpose of being leased by a Federal agency, and privatized military housing. Power purchase agreement means an agreement with an electricity producer for all or a specified portion of the electricity produced from a particular power source, in this case a renewable energy source, for a specified period of time. Proposed building means the design for construction of a new Federal lowrise residential building, or major renovation to a Federal low-rise residential building, proposed for construction. Renewable energy certificate means the technology and environmental (nonenergy) attributes that represent proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable energy resource, and can be sold separately from the underlying generic electricity with which it is associated. VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 § 435.3 [Amended] 10. Amend § 435.3 by adding to the end of paragraph (b)(2) ‘‘, 435.201, Appendix A to Subpart B’’. ■ 11. Revise § 435.4 to read as follows: ■ § 435.4 Life-cycle cost-effective. Except as specified in subparts A, B or C of this part, Federal agencies shall determine life-cycle cost-effectiveness by using the procedures set out in subpart A of part 436. A Federal agency may choose to use any of four methods, including life-cycle cost, net savings, savings-to-investment ratio, and adjusted internal rate of return using the discount rate published in the annual supplement to the Life Cycle Costing Manual for the Federal Energy Management Program (NIST 85–3273). ■ 12. Subpart B is added to part 435 to read as follows: Subpart B—Reduction in Fossil FuelGenerated Energy Consumption Sec. 435.200 Fossil fuel-generated energy consumption requirement. 435.201 Fossil fuel-generated energy consumption determination. 435.202 Petition for downward adjustment. Appendix A to Subpart B of Part 435— Maximum Allowable Fossil Fuel-Generated Energy Consumption Subpart B—Reduction in Fossil FuelGenerated Energy Consumption § 435.200 Fossil fuel-generated energy consumption requirement. (a) New Federal buildings. New Federal buildings that are low-rise residential buildings, for which design for construction began on or after October 14, 2015, must be designed to meet the requirements of paragraph (c) of this section if the cost of the building is at least $2,500,000 (in 2007 dollars, adjusted for inflation). (b) Major renovations. (1) Major renovations to Federal buildings that are low-rise residential buildings, for which design for construction began on or after October 14, 2015, must be designed to meet the requirements of paragraph (c) of this section if the cost of the major renovation is at least $2,500,000 (in 2007 dollars, adjusted for inflation). (2) This subpart applies only to the portions of the proposed building or proposed building systems that are being renovated and to the extent that the scope of the renovation permits compliance with the applicable requirements in this subpart. Unaltered portions of the proposed building or proposed building systems are not required to comply with this subpart. (3) For leased buildings, this subpart applies to major renovations only if the PO 00000 Frm 00040 Fmt 4701 Sfmt 4702 proposed building was originally built for the use of any Federal agency, including being leased by a Federal agency. (c) Federal buildings that are of the type included in Appendix A of this subpart—(1) Design for construction began during fiscal year 2014 through fiscal year 2029. The fossil fuelgenerated energy consumption of the proposed building, based on the building design and calculated according to § 435.201(a), must not exceed the value identified in Tables 1– 4 of Appendix A of this subpart for the associated building type, climate zone, and fiscal year in which design for construction began. (2) Design for construction began during or after fiscal year 2030. The fossil fuel-generated energy consumption of the proposed building, based on building design and calculated according to § 435.201(a), must be zero. § 435.201 Fossil fuel-generated energy consumption determination. (a) The fossil fuel-generated energy consumption of a proposed design is calculated as follows: Equation 1: Fossil Fuel-Generated Energy Consumption = ((3.412 kBtu/ kwh × Fossil Fuel-Generation Factor × (Proposed Building Site Electricity Consumption ¥ Renewable Energy and CHP Electricity Deduction)/ Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of Proposed Building × Other Fuels Source Energy Multiplier))/Floor Area Whereas: (1) Fossil Fuel-Generation Factor is equal to (AEPcoal + AEPpl + AEPpc + AEPng + AEPog)/Total AEP Where AEP = annual electrical production pl = petroleum liquids pc = petroleum coke ng = natural gas og = other gas All values are taken from Table 3.2.A of the EIA Electric Power Annual Report, which is updated on a periodic basis. DOE will on an annual basis calculate the Fossil Fuel Generation Factor and publish the result at the following web address: https://energy. gov/eere/femp/federal-energymanagement-program (2) Proposed Building Site Electricity Consumption equals the estimated site electricity consumption of the proposed building calculated in accordance with the Simulated Performance Alternative in Section 405 of the IECC 2009 (incorporated by reference; see § 435.3), measured in kilowatt hours per year (kWh/yr). E:\FR\FM\14OCP2.SGM 14OCP2 mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules (3) Renewable Energy and CHP Electricity Deduction equals the total contribution specified in paragraph (b) of this section, measured in kilowatt hours per year (kWh/yr). (4) Electricity Source Energy Factor For electricity purchased from the grid, the Electricity Source Factor is equal to 0.316. For on-site electrical generation, it is the estimated efficiency of the generating equipment and any estimated distribution losses that may occur. (5) Direct Fossil Fuel Consumption of Proposed Building equals the total site fossil fuel consumption of the proposed building calculated in accordance with the Simulated Performance Alternative in Section 405 of the IECC 2009 (incorporated by reference; see § 435.3), excluding fossil fuel consumption for electricity generation, and measured in thousands of British thermal units per year per (kBtu/yr). This includes any fossil fuel consumption attributable to non-electric power (e.g., heat or steam) used in a proposed building that is supplied by a district energy system or CHP system. (6) Other Fuels Source Energy Multiplier For purposes of Equation 1, the multipliers are as follows: Natural gas 1.046 Fuel oil 1.00 Propane 1.00 District Steam (non-CHP) 1.35 District steam (CHP) 2.30 District hot water 1.28 Chilled water 1.05 Coal 1.00 (7) Floor Area is the floor area of the structure that is enclosed by exterior walls, including finished or unfinished basements, finished or heated space in attics, and garages if they have an uninsulated wall in common with the house. Not included are crawl spaces, and sheds and other buildings that are not attached to the house. (b) Renewable energy and CHP electricity deductions—(1) Renewable electricity. The following renewable electricity generation qualifies as a deduction under paragraph (a) of this section to the extent that the renewable electricity generation represents new electric generating capacity or a new renewable energy obligation on the part of the agency, and not a reassignment of existing capacity or obligations: (i) On-site renewable electricity generation is the amount of electricity measured in kilowatt hours per year (kWh/yr) to be consumed by the building that is contributed by renewable electricity generated at the Federal site or facility on which the building will be located. The environmental attributes of the on-site VerDate Sep<11>2014 17:40 Oct 10, 2014 Jkt 235001 renewable electricity generation must not be transferred. (ii) Off-site renewable electricity generation is the amount of renewable electricity measured in kilowatt hours per year (kWh/yr) generated at a site or facility, either Federal or non-federal, other than the Federal site or facility on which the building will be located, and may include renewable energy produced under a Power Purchase Agreement and represented by Renewable Energy Certificates. (2) Limitation on the use of renewable electricity generation for new Federal buildings and major renovations. The environmental attributes of the renewable energy generation must not be transferred. The agency must ensure that the environmental attributes of onsite renewable energy generation are dedicated to meeting the fossil fuelgenerated energy consumption reduction requirements of the proposed building. (3) CHP deduction. Electricity associated with non-electric power provided to a proposed building by a district energy system that is a CHP system or an on-site CHP system qualifies as a deduction under paragraph (a) and is equal to the total heat delivered to the proposed building from the direct energy system divided by total heat produced by the CHP system, times the total electricity produced by the CHP system. § 435.202 Petition for downward adjustment. (a) New Federal buildings. (1) Upon petition by a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over building design, the Director of the Federal Energy Management Program may adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific building, upon written certification from the head of the agency designing the building, or the head of a GSA-tenant agency, that the requested adjustment is the largest feasible reduction in fossil fuel-generated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by: (i) A statement sealed by the design engineer that the proposed building was designed in accordance with the applicable energy efficiency requirement in subpart A of this Part, and that each energy consuming product included in the proposed building that is of a product category covered by the ENERGY STAR program PO 00000 Frm 00041 Fmt 4701 Sfmt 4702 61733 or the Federal Energy Management Program for designated products is an ENERGY STAR product or a product meeting the FEMP designation criteria, as applicable; (ii) A description of the technologies and practices that were evaluated and rejected, including a justification of why they were not included in the design for construction; and (iii) Any other information the agency determines would help explain its request; (2) The head of the agency designing the building, or the head of a GSAtenant agency, must also include the following information in the petition: (i) A general description of the building, including but not limited to location, use type, floor area, stories, and functional needs; (ii) The maximum allowable fossil fuel-generated energy consumption for the building from Tables 1–4 of Appendix A of this subpart; (iii) The estimated fossil fuelgenerated energy consumption of the proposed building; (iv) A description of the proposed building’s energy-related features, including but not limited to: (A) Building envelope, including, but not limited to, construction materials, insulation levels, and the type, area, heat loss and solar heat gain and visible light transmission coefficients of windows and other glazing; (B) HVAC system type and configuration; (C) HVAC equipment sizes and efficiencies; (D) Ventilation systems (including outdoor air volume, controls technique, heat recovery systems, and economizers, if applicable); (E) Service water heating system configuration and equipment (including solar hot water, wastewater heat recovery, and controls for circulating hot water systems, if applicable); (F) Lighting technology, interior lighting power, and lighting control techniques; (G) Estimated process and plug loads; and (H) Any other energy-related equipment; and (3) The Director of the Federal Energy Management Program may concur in whole or in part with a petition. Upon concurring in part, the Director of the Federal Energy Management Program will establish an applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific building other than the value put forth in the petition. (4) Petitions for downward adjustment should be submitted to ffpetition@ee.doe.gov, or to: E:\FR\FM\14OCP2.SGM 14OCP2 61734 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over renovation design, the Director of the Federal Energy Management Program will adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific major renovation limited to a building system or component, upon written certification from the head of the agency designing the building, or the head of a GSA-tenant agency, that the requested adjustment is the largest feasible reduction in fossil fuelgenerated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by a statement stamped by the design engineer that the proposed building incorporates commercially available systems and/or components that provide a level of energy efficiency that is life-cycle cost effective. (3) Petitions for downward adjustment should be submitted to ffpetition@ee.doe.gov, or to: U.S. Department of Energy, Federal Energy Management Program, Director, Fossil Fuel Reductions in New Federal Buildings, EE–2L, 1000 Independence Ave. SW., Washington, DC 20585–0121. (4) The downward adjustment for a major renovation will be deemed approved upon submittal of the certification required in paragraphs (b)(1) or (2) of this section, as applicable. U.S. Department of Energy, Federal Energy Management Program, Director, Fossil Fuel Reductions in New Federal Buildings, EE–2L, 1000 Independence Ave. SW., Washington, DC 20585–0121. (5) The Director will notify the requesting agency in writing whether the petition for downward adjustment to the numeric reduction requirement is approved, in whole or in part, or rejected, within 90 days of submittal. If the Director rejects -the petition or establishes a value other than that presented in the petition, the Director will forward its reasons for rejection to the petitioning agency. (b) Major renovations to Federal buildings—(1) Major renovation of the whole building. Upon petition by a Federal agency, excluding the General Services Administration (GSA) but including GSA-tenant agencies with significant control over renovation design, the Director of the Federal Energy Management Program will adjust the applicable maximum allowable fossil fuel-generated energy consumption standard with respect to a specific major renovation of a whole building, upon written certification from the head of the agency designing the building, or the head of a GSAtenant agency, that the requested adjustment is the largest feasible reduction in fossil fuel-generated consumption that can practicably be achieved in light of the specified functional needs for that building, as demonstrated by a statement stamped by the design engineer that the proposed building was designed consistent with the energy efficiency requirement in subpart A of this Part that corresponds to the date of the proposed building. (2) Major renovation of a building system or component. Upon petition by Appendix A to Subpart B of Part 435— Maximum Allowable Fossil FuelGenerated Energy Consumption (a) For purposes of the tables in this Appendix, the climate zones for each county in the United States are those listed in Figure 301.1 of IECC 2009 (incorporated by reference; see § 435.3). (b) For purpose of Appendix A, the following definitions apply: Manufactured Home means a dwelling unit built to the Federal Manufactured Home Construction and Safety Standards in 24 CFR part 3280, that is built on a permanent chassis and moved to a site. It may be placed on a permanent or temporary foundation and may contain one or more rooms. Multi-Family in 2–4 Unit Buildings means a category of structures that is divided into living quarters for two, three, or four families or households in which one household lives above or beside another. This category also includes houses originally intended for occupancy by one family (or for some other use) that have since been converted to separate dwellings for two to four families. Multi-Family in 5 or More Unit Buildings means a category of structures that contain living quarters for five or more households or families and in which one household lives above or beside another. Single-Family Attached means a building with two or more connected dwelling units, generally with a shared wall, each providing living space for one household or family. Attached houses are considered single-family houses as long as they are not divided into more than one dwelling unit and they have independent outside entrances. A singlefamily house is contained within walls extending from the basement (or the ground floor, if there is no basement) to the roof. Townhouses, row houses, and duplexes are considered single-family attached dwelling units, as long as there is no dwelling unit above or below another. This includes modular homes but does not include manufactured homes. Single-Family Detached means a separate, unconnected dwelling unit, not sharing a wall with any other building or dwelling unit, which provides living space for one household or family. A single-family house is contained within walls extending from the basement (or the ground floor, if there is no basement) to the roof. This includes modular homes but does not include manufactured homes. TABLE 1—FY2013–FY2014 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building activity/ type mstockstill on DSK4VPTVN1PROD with PROPOSALS2 Residential ............. Residential ............. Residential ............. Residential ............. Residential ............. VerDate Sep<11>2014 Mobile/manufactured home. Single-family detached. Single-family attached. Multi-family (in 2–4 unit building). Multi-family (in 5+ unit building). 17:40 Oct 10, 2014 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 56 54 46 48 28 47 33 48 43 49 53 45 61 54 64 84 42 40 34 36 21 35 24 36 32 36 39 33 45 40 47 62 48 46 39 41 24 40 28 41 37 41 45 38 52 46 55 72 70 68 57 60 35 59 41 60 54 61 66 56 76 68 80 105 48 46 39 41 24 40 28 41 37 41 45 38 52 46 55 72 Jkt 235001 PO 00000 Frm 00042 Fmt 4701 Sfmt 4700 E:\FR\FM\14OCP2.SGM 14OCP2 61735 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Proposed Rules TABLE 2—FY2014–FY2019 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone: 1 2A 2B 3B coast 3A Building activity/ type Residential ............. Residential ............. Residential ............. Residential ............. Residential ............. Mobile/manufactured home. Single-family detached. Single-family attached. Multi-family (in 2–4 unit building). Multi-family (in 5+ unit building). 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 44 42 35 37 22 36 25 37 34 38 41 35 47 42 50 65 32 31 26 28 16 27 19 28 25 28 30 26 35 31 37 49 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56 55 53 44 47 27 46 32 47 42 47 51 44 59 53 62 82 37 36 30 32 18 31 22 32 29 32 35 30 40 36 42 56 TABLE 3—FY2020–FY2024 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3B coast 3A Building activity/ type Residential ............. Residential ............. Residential ............. Residential ............. Residential ............. Mobile/manufactured home. Single-family detached. Single-family attached. Multi-family (in 2–4 unit building). Multi-family (in 5+ unit building). 3B other 3C 4A 4B 4C 5A 5B 6A 6B 7 8 Fossil fuel-generated energy use intensity 25 24 20 21 12 21 15 21 19 22 23 20 27 24 28 37 18 18 15 16 9 15 11 16 14 16 17 15 20 18 21 28 21 21 17 18 11 18 12 18 16 18 20 17 23 21 24 32 31 30 25 27 15 26 18 27 24 27 29 25 34 30 36 47 21 20 17 18 11 18 12 18 16 18 20 17 23 21 24 32 TABLE 4—FY2024–FY2029 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND CLIMATE ZONE, RESIDENTIAL BUILDINGS [Source kBtu/yr-sqft] Building category Climate zone 1 2A 2B 3A 3B coast Building activity/ type Residential ............. Residential ............. Residential ............. Residential ............. Residential ............. Mobile/manufactured home. Single-family detached. Single-family attached. Multi-family (in 2–4 unit building). Multi-family (in 5+ unit building). 3B other 3C 4A 4B 4C 5A mstockstill on DSK4VPTVN1PROD with PROPOSALS2 6B 7 8 12 12 10 11 6 10 7 11 10 11 12 10 13 12 14 19 9 9 8 8 5 8 5 8 7 8 9 7 10 9 11 14 11 10 9 9 5 9 6 9 8 9 10 9 12 10 12 16 16 15 13 13 8 13 9 13 12 14 15 13 17 15 18 23 11 10 9 9 5 9 6 9 8 9 10 9 11 10 12 16 BILLING CODE 6450–01–P 17:40 Oct 10, 2014 6A Fossil fuel-generated energy use intensity [FR Doc. 2014–24151 Filed 10–10–14; 8:45 am] VerDate Sep<11>2014 5B Jkt 235001 PO 00000 Frm 00043 Fmt 4701 Sfmt 9990 E:\FR\FM\14OCP2.SGM 14OCP2

Agencies

[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Proposed Rules]
[Pages 61693-61735]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24151]



[[Page 61693]]

Vol. 79

Tuesday,

No. 198

October 14, 2014

Part II





Department of Energy





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10 CFR Parts 433 and 435





Fossil Fuel-Generated Energy Consumption Reduction for New Federal 
Buildings and Major Renovations of Federal Buildings; Proposed Rule

Federal Register / Vol. 79 , No. 198 / Tuesday, October 14, 2014 / 
Proposed Rules

[[Page 61694]]


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DEPARTMENT OF ENERGY

10 CFR Parts 433 and 435

[Docket No. EERE-2010-BT-STD-0031]
RIN 1904-AB96


Fossil Fuel-Generated Energy Consumption Reduction for New 
Federal Buildings and Major Renovations of Federal Buildings

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

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Energy Conservation and Production Act (ECPA), as amended 
by the Energy Independence and Security Act of 2007, requires DOE to 
establish revised performance standards for the construction of new 
Federal buildings, including commercial buildings, multi-family high-
rise residential buildings and low-rise residential buildings. On 
October 15, 2010, DOE issued a Notice of Proposed Rulemaking (NOPR) to 
establish regulations implementing the fossil fuel-generated energy 
provisions of the ECPA performance standards for Federal buildings. In 
response to the NOPR, DOE received a number of comments expressing 
concern and encouraging DOE to re-examine the proposed regulations. In 
response to these comments, DOE has identified additional areas for 
clarification and consideration that would benefit from further public 
comment. In this supplemental notice of proposed rulemaking (SNOPR), 
DOE responds to the comments received on the NOPR and identifies and 
seeks comment on additional approaches to the scope of the requirements 
in the context of major renovations, the potential use of renewable 
energy certificates for compliance, and a streamlined process for 
agencies to seek a downward adjustment from the required reduction 
levels, particularly for major renovations.

DATES: Public comments on this supplemental proposed rule will be 
accepted until December 15, 2014.

ADDRESSES: This rulemaking can be identified by docket number EERE-
2010-BT-STD-0031 and/or RIN number 1904-AB96.
    Docket: The docket is available for review at https://www.regulations.gov including Federal Register Notices, public meeting 
attendee lists, transcripts, comments and other supporting documents/
materials. All documents in the docket are listed in the https://www.regulations.gov index.
    You may submit comments, identified by any of the following 
methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: FossilFuelReduct-2010-STD-0031@ee.doe.gov. Include 
EERE-2010-BT-STD-0031 and/or RIN 1904-AB96 in the subject line of the 
message.
     Postal Mail: Ms. Brenda Edwards, U.S. Department of 
Energy, Building Technologies Program, Mailstop EE-2J, Fossil Fuel-
Generated Energy Consumption Reduction for New Federal Buildings and 
Major Renovations of Federal Buildings, EERE-2010-BT-STD-0031 and/or 
RIN 1904-AB96, 1000 Independence Avenue SW., Washington, DC 20585-0121. 
Telephone: (202) 586-9138. Please submit one signed paper original. Due 
to the potential delays in DOE's receipt and processing of mail sent 
through the U.S. Postal Service, DOE encourages respondents to submit 
comments electronically to ensure timely receipt.
     Hand Delivery/Courier: Brenda Edwards, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Building 
Technologies Program, EE-2J, 1000 Independence Avenue SW., Washington, 
DC 20585-0121.
    Instructions: All submissions must include the agency name and 
docket number or Regulatory Information Number (RIN) for this 
rulemaking.
    Docket: For access to the docket to read background documents or 
comments received by DOE, go to the U.S. Department of Energy, 
Forrestal Building, Room 5E-080 (Resource Room of the Federal Energy 
Management Program), 1000 Independence Avenue SW., Washington, DC, 
(202) 586-9127, between 9 a.m. and 4 p.m., Monday through Friday, 
except Federal holidays. Please call Brenda Edwards at (202) 586-2945 
for additional information regarding visiting the Resource Room.

FOR FURTHER INFORMATION CONTACT: For technical issues, contact Sarah 
Jensen, U.S. Department of Energy, Office of Energy Efficiency and 
Renewable Energy, Building Technologies Program, EE-5F, 1000 
Independence Avenue SW., Washington, DC 20585-0121, (202) 287-6033, 
email: Sarah.Jensen@ee.doe.gov. For legal issues, contact Ami Grace-
Tardy, U.S. Department of Energy, Office of the General Counsel, 
Forrestal Building, GC-71, 1000 Independence Avenue SW., Washington, DC 
20585, (202) 586-5709, email: Ami.Grace-Tardy@hq.doe.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Authority
    B. Background
II. Summary of the Proposed Rule
III. General Discussion and Response to Comments
    A. Overview
    B. Scope and Applicability of the Proposed Rule
    1. Determining the $2.5 Million Threshold for Applicability of 
the Rule
    2. Compliance Date of the Rule
    3. Major Renovations
    4. Multiple Buildings
    5. Leased Buildings
    6. Federal Buildings Overseas
    7. Residential Buildings
    8. Privatized Military Housing
    9. Other
    C. Establishing and using the Baseline
    1. CBECS and RECS Baselines
    2. Climate Adjustment
    3. Plug and Process Loads
    4. Differentiate Between Fossil Fuels
    5. Regional Fossil Fuel Factors
    6. Marginal Source of Electricity
    7. Residential Common Areas
    8. Major Renovations
    9. Other
    D. Methodology to Determine Compliance
    1. Whole Building Simulation
    2. Off-Site and On-Site Renewable Energy and Renewable Energy 
Certificates
    3. Use of Source Energy
    4. Fuel Conversion Efficiency
    5. On-Site Energy Generation From Natural Gas
    6. Additional Review
    7. Other
    E. Petitions for Downward Adjustment
    1. Technical Impracticability and Cost as a Basis for Downward 
Adjustment
    2. Bundling of Petitions
    3. DOE Review Process
    4. Information Required in Petitions for New Construction
    5. Downward Adjustments for Major Renovations
    6. Make Information Publicly Available
    7. Narrow the Use of Petitions
    8. GSA Tenant Agencies
    9. Other
    F. Impacts of the Rule
    1. Cost Impacts
    2. Other Impacts
    G. Guidance and Other Topics
    1. Training
    2. Verification and Monitoring
IV. Reference Resources
V. Procedural Issues and Regulatory Review

I. Introduction

A. Authority

    Section 305 of the Energy Conservation and Production Act (ECPA) 
established energy conservation requirements for Federal buildings. (42 
U.S.C. 6834) Section 433(a) of the Energy Independence and Security Act 
of 2007 (Pub. L. 110-140) (EISA 2007) amended section 305 of ECPA and 
directed DOE to establish regulations that require fossil fuel-
generated energy

[[Page 61695]]

consumption reductions for certain new Federal buildings and Federal 
buildings undergoing major renovations. (42 U.S.C. 6834(a)(3)(D)(i)) 
The fossil-fuel generated energy consumption reductions only apply to 
Federal buildings that: (1) Are ``public buildings'' (as defined in 40 
U.S.C. 3301) \1\ with respect to which the Administrator of General 
Services is required to transmit a prospectus to Congress under 40 
U.S.C. 3307;\2\ or (2) those that cost at least $2,500,000 in costs 
adjusted annually for inflation. (42 U.S.C. 6834(a)(3)(D)(i))
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    \1\ Under 40 U.S.C. 3301(5), ``public building'' is a building, 
whether for single or multitenant occupancy, and its grounds, 
approaches, and appurtenances, which is generally suitable for use 
as office or storage space or both by one or more Federal agencies 
or mixed-ownership Government corporations.
    ``Public building'' includes Federal office buildings, post 
offices, customhouses, courthouses, appraisers stores, border 
inspection facilities, warehouses, record centers, relocation 
facilities, telecommuting centers, similar Federal facilities, and 
any other buildings or construction projects the inclusion of which 
the President considers to be justified in the public interest.
    The definition does not include a building or construction 
project that is on the public domain (including that reserved for 
national forests and other purposes); that is on property of the 
Government in foreign countries; that is on Indian and native Eskimo 
property held in trust by the Government; that is on land used in 
connection with Federal programs for agricultural, recreational, and 
conservation purposes, including research in connection with the 
programs; that is on or used in connection with river, harbor, flood 
control, reclamation or power projects, for chemical manufacturing 
or development projects, or for nuclear production, research, or 
development projects; that is on or used in connection with housing 
and residential projects; that is on military installations 
(including any fort, camp, post, naval training station, airfield, 
proving ground, military supply depot, military school, or any 
similar facility of the Department of Defense); that is on 
installations of the Department of Veterans Affairs used for 
hospital or domiciliary purposes; or the exclusion of which the 
President considers to be justified in the public interest.
    \2\ 40 U.S.C. 3307 describes the minimum construction, 
alteration and lease costs that would trigger a prospectus to 
Congress.
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    For these buildings, Section 305 of ECPA, as amended by EISA 2007, 
mandates that the buildings be designed so that a building's fossil 
fuel-generated energy consumption is reduced as compared with such 
energy consumption by a similar building in fiscal year 2003 (as 
measured by Commercial Buildings Energy Consumption Survey or 
Residential Energy Consumption Survey data from the DOE's Energy 
Information Administration) by 55 percent beginning in fiscal year 
2010, 65 percent beginning in fiscal year 2015, 80 percent beginning in 
fiscal year 2020, 90 percent beginning in fiscal year 2025, and 100 
percent beginning in fiscal year 2030. (42 U.S.C. 6834(a)(3)(D)(i)(I))
    In addition, upon petition by an agency subject to the statutory 
requirements, ECPA, as amended by EISA 2007, permits DOE to adjust the 
applicable numeric reduction requirement downward with respect to a 
specific building, if the head of the agency designing the building 
certifies in writing that meeting such requirement would be technically 
impracticable in light of the agency's specified functional needs for 
that building and DOE concurs with the agency's conclusion. (42 U.S.C. 
6834(a)(3)(D)(i)(II)) Such an adjustment does not apply to GSA. (42 
U.S.C. 6834(a)(3)(D)(i)(II)) (In the remainder of today's rulemaking, 
all references to ECPA refer to the statute as amended through EISA 
2007.)

B. Background

    This supplemental notice of proposed rulemaking amends certain 
portions of 10 CFR parts 433 and 435, the regulations governing energy 
efficiency in Federal buildings. The Notice of Proposed Rulemaking 
(NOPR) was published on October 15, 2010. 75 FR 63404. The public 
meeting was held on November 12, 2010, and public comments were 
accepted through December 14, 2010. DOE received a number of comments 
expressing concern and encouraging DOE to re-examine the proposed 
regulations.\3\ In response to these comments, DOE has identified 
additional areas for clarification and consideration that would benefit 
from further public comment. In this SNOPR, DOE responds to the 
comments received on the NOPR and identifies and seeks comment on 
additional approaches to the scope of the requirements in the context 
of major renovations, the potential use of renewable energy 
certificates for compliance, and a more streamlined process for 
agencies to seek a downward adjustment from the reduction levels.
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    \3\ Complete contents of the docket folder may be found at 
https://www.regulations.gov/#!docketDetail;D=EERE-2010-BT-STD-0031.
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    DOE is in the process of addressing other requirements for Federal 
buildings mandated in ECPA, as amended by section 433 of EISA. DOE 
published a proposed rule on sustainable design standards for new 
Federal buildings and major renovations on May 28, 2010 (75 FR 29933) 
(the ``Sustainable Design NOPR''), which also proposed to amend certain 
portions of 10 CFR parts 433 and 435. (Docket No. EE-RM/STD-02-112, RIN 
1904-AC13) Elsewhere in this issue of the Federal Register, the green 
building certification portion of the Sustainable Design NOPR is 
published as a final rule.
    DOE received a number of comments on the scope of the EISA 2007 
amendments both in the context of this rulemaking and in response to 
the Sustainable Design NOPR. DOE addresses both sets of comments in 
today's rulemaking.

II. Summary of the Proposed Rule

    This SNOPR addresses requirements for new construction and major 
renovations of Federal commercial and high-rise residential buildings, 
as well as Federal low-rise residential buildings. The following is an 
overview of each section of today's SNOPR, including any relevant 
changes from the proposal as provided in the October 15, 2010 NOPR. (75 
FR 63404; ``2010 Proposed Rule'')

A. Regulatory Scheme

    In this SNOPR, DOE is proposing to address the contents of Subpart 
B of both 10 CFR parts 433 and 435--the fossil fuel-generated energy 
consumption requirements.
    In addition, this rule proposes to amend the term ``life-cycle 
cost-effective'' to tie the definition of life-cycle cost-effectiveness 
closer to the four life cycle cost methodologies set out in subpart A 
of 10 CFR part 436.

B. Overall Basis for the Rulemaking

    The underlying requirements for this rulemaking are based on the 
requirements in Section 433 of EISA 2007. The statute requires that 
covered Federal buildings be designed so that the fossil fuel-generated 
energy consumption of the buildings is reduced, as compared with such 
energy consumption by a similar building in fiscal year 2003 (as 
measured by Commercial Buildings Energy Consumption Survey or 
Residential Energy Consumption Survey data from DOE's Energy 
Information Administration), by the percentage specified in the 
following table:

                    Fiscal Year Percentage Reduction
------------------------------------------------------------------------
 
------------------------------------------------------------------------
2010...............................................................   55
2015...............................................................   65
2020...............................................................   80
2025...............................................................   90
2030...............................................................  100
------------------------------------------------------------------------

    As discussed later in this document, DOE believes that the current 
energy efficiency requirements applicable to the design of new Federal 
buildings, when compared to the energy efficiency of the baseline 
buildings, would result in a substantial level of compliance with

[[Page 61696]]

the 55 percent and 65 percent reduction levels.

C. Covered Buildings

    The proposed rule would apply to certain new Federal buildings, and 
major renovations to Federal buildings, as specified in section 433 of 
EISA 2007. By statute, the term ``Federal building'' means any building 
to be constructed by, or for the use of, any Federal agency, including 
buildings built for the purpose of being leased by a Federal agency, 
and privatized military housing. (42 U.S.C. 6832(6))
    This proposed rule only would apply to new Federal buildings and 
major renovations to Federal buildings covered by EISA 2007. Federal 
buildings covered by EISA 2007 include new Federal buildings, or major 
renovations to Federal buildings, that are also: (1) Public buildings, 
as defined in 40 U.S.C. 3301 for which a transmittal of a prospectus to 
Congress is required under 40 U.S.C. 3307; or (2) Federal buildings for 
which the construction cost or major renovation cost is at least 
$2,500,000 (2007 dollars, adjusted for inflation). This subset of 
buildings and major renovations will be referred to as EISA-covered 
buildings in this SNOPR.

D. Definitions

    This rulemaking contains definitions for ``combined heat and power 
(CHP) system,'' ``district energy system,'' ``fiscal year,'' ``major 
renovation,'' ``power purchase agreement (PPA),'' ``proposed 
building,'' and ``renewable energy certificate.''
    This rulemaking also proposes to define 16 categories of commercial 
buildings and one category of multi-family high-rise residential 
buildings in 10 CFR part 433 and one category of low-rise residential 
buildings in 10 CFR part 435. The 16 categories of commercial buildings 
proposed are education, food sales, food service, health care 
(inpatient), health care (outpatient), laboratory, lodging, mercantile 
(enclosed and strip shopping malls), office, public assembly, public 
order and safety, religious worship, retail (other than mall), service, 
and warehouse and storage. Many of these commercial building categories 
are further divided into building types. The single category of low-
rise residential buildings is divided into five building/activity 
types: manufactured homes, multi-family in 2-4 unit buildings, multi-
family in 5 or more unit buildings, single-family attached, and single-
family detached. These building categories and building types represent 
the high-level principal building activity and low-level principle 
building activity categories in the 2003 Commercial Building Energy 
Consumption Survey (CBECS).\4\
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    \4\ The CBECS principle building types and subcategories are 
described at https://www.eia.gov/consumption/commercial/building-type-definitions.cfm. This rulemaking is based on the subcategories 
shown in this link.
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E. Fossil Fuel-Generated Energy Consumption Requirements

    For buildings for which design for construction begins in the 
fiscal years 2013 to 2029, tables of the proposed maximum allowable 
fossil fuel-generated energy consumption by building type and climate 
zone are provided. The proposed values in the tables come from DOE's 
Energy Information Administration (EIA) CBECS (for commercial 
buildings) and RECS (for multi-family high-rise and low-rise 
residential buildings), both of which are converted from site energy 
consumption to source energy consumption. The building types in the 
tables in Appendix A to this proposed rule are subsets of the building 
categories discussed above.
    The CBECS and RECS data was parsed into the 16 climate zones used 
in the current Federal baseline standards for commercial and multi-
family high-rise residential buildings, which rely on ANSI/ASHRAE/IESNA 
Standard 90.1.
    For buildings that combine two or more building types, area-
weighted averaging by square footage for each building type would be 
used to calculate the maximum allowable fossil fuel-generated energy 
consumption of the combined building. For building types dominated by 
process loads, as defined in 10 CFR 433.2, and that are not listed in 
CBECS, the regulations would require the use of the CBECS building type 
that most closely matches the building without the process load and 
then accounting for the process load in the calculation. For these 
buildings, process loads would be accounted for, but are not subject to 
the percentage reductions in fossil fuel-generated energy consumption 
required for the building related loads.
    For major renovations that are less than whole building renovations 
(system or component level retrofits) DOE is proposing that the maximum 
allowable fossil fuel-generated energy consumption in fiscal years 2013 
through 2029 be based on a percentage of the whole building energy 
consumption represented by the renovated system or component.
    For buildings for which design for construction begins in fiscal 
year 2030 or beyond, the fossil fuel-generated energy consumption of 
the building would be required to be zero for all building types and 
climate zones, based on the calculation established in the regulations.

F. Fossil Fuel-Generated Energy Consumption Determination

    To determine compliance with the fossil fuel reductions, agencies 
would be required to estimate the fossil fuel-generated energy 
consumption of their proposed building design and compare that estimate 
to the allowable fiscal year percentage reduction target. DOE has 
proposed a calculation to make this estimated fossil fuel-generated 
energy consumption for the proposed building.
    Fundamentally, the calculation would add the fossil fuel component 
of the electricity used by the building to the direct fossil fuels used 
by the building. To calculate the fossil fuel component of the 
electricity used by the building, agencies would be required to first 
estimate the amount of electricity used by the building in accordance 
with the Performance Rating Method in Appendix G of ASHRAE Standard 
90.1-2010. Any electricity produced from a renewable energy or CHP 
system would not count towards the site electricity consumption in the 
baseline or the current calculated level. This figure would then be 
multiplied by the fossil fuel generation factor (calculated at 0.71 for 
the 2003 base year and also for 2012, the latest year of data available 
from EIA) to account for the percentage of electricity in the U.S. that 
is generated from fossil fuel.\5\ FEMP will publish updates to the 
fossil fuel generation factor annually on the FEMP Web site \6\ so that 
agencies can use the most recent value in their calculations. The 
adjusted site electricity estimate would then be converted to source 
electricity by dividing it by the national average electricity source 
energy factor of 0.316 to account for fuel conversion and transmission 
and distribution losses. To this would be added the direct fossil fuel 
consumption for fuels other than electricity, adjusted for distribution 
and other losses that occur between delivery to the fuel provider and 
final delivery to

[[Page 61697]]

the site with the other fuels source energy multiplier. The other fuels 
energy source multiplier would not include losses associated with the 
production, harvesting, refining, or transportation of bulk fuels. The 
result would then be divided by the floor area of the building and 
converted to thousands of British thermal units per square foot (kBtu/
sq.ft.).
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    \5\ The fossil fuel generation factor of 0.71 is derived from 
Table 3.2.A of the Energy Information Administration (EIA) 2012 
Electric Power Annual Report (https://www.eia.gov/electricity/annual/html/epa_03_02_a.html). Specifically, the number is developed by 
summing the annual electricity produced by coal, petroleum liquids, 
petroleum coke, natural gas, and other gas and then dividing the sum 
by the total electricity produced. 0.71 is the value of this factor 
in 2003 and in 2012, but the value has changed over time and is 
expected to vary in the future as new sources of renewable energy 
come online.
    \6\ https://energy.gov/eere/femp/federal-energy-management-program.
---------------------------------------------------------------------------

    For major renovations that are less than whole building renovations 
(system or component level retrofits) DOE proposes to base the subject 
fossil fuel-generated energy consumption on the system or component as 
retrofitted.
    Electricity produced from renewable energy would qualify as a 
deduction to the extent that it represents new electric generating 
capacity or a new renewable energy obligation on the part of the 
agency, and not a reassignment of existing capacity or obligations. The 
regulations would establish criteria for on-site renewable electricity 
generation and off-site renewable electricity generation (including 
generation represented by Renewable Energy Certificates) to help 
clarify these terms and the limits on how this generation may be used 
as a deduction from the proposed building electricity consumption. DOE 
has also proposed a clarification as to how electricity associated with 
district heating or cooling systems, district chilled water, and CHP 
systems would be treated.

G. Petitions for Downward Adjustment

    Under the provision of Section 433 of EISA 2007 and as proposed, 
agencies other than GSA (but including GSA-tenant agencies with 
significant control over building design) would be able to petition DOE 
for an adjustment to the fossil fuel requirement with respect to a 
specific building if meeting the requirement is technically 
impracticable in light of the agency's functional needs for the 
building. This proposed rule provides a list of what information would 
be required to be included in a petition for a downward adjust for a 
new building. This includes a description of the building and 
associated components and equipment, an explanation of why compliance 
with the requirements is technically impracticable in light of the 
functional needs of the building, a demonstration that all cost-
effective energy efficiency and on-site renewable energy measures were 
included in the building design, and a description of measures that 
were evaluated but rejected. As proposed, the Director of the Federal 
Energy Management Program would review the petition and make a decision 
on the petition within 90 days of submittal.
    Additionally, this rulemaking proposes separate, streamlined 
downward adjustment processes for major renovations that are whole 
building renovations and for major renovations that are system or 
component level retrofits. The streamlined processes recognize the 
constraints on compliance inherent with major renovations, e.g., 
building site and orientation cannot be changed and configuration of 
the building shell is likely difficult, if not technically 
impracticable, to adjust. Under DOE's proposal, upon application, a 
Federal agency with a major renovation that is a whole building 
renovation would receive a downward adjustment equal to the energy 
efficiency level that would be required under the Federal building 
energy efficiency standards were the building a new building (i.e., the 
ASHRAE 90.1 and IECC requirements applicable to commercial and 
residential new Federal buildings, respectively). Upon application, a 
major renovation that is limited to a system or component level 
retrofit would receive a downward adjustment equal to the energy 
efficiency level that would be achieved through the use of products 
that represent a level of energy efficiency that is life-cycle cost-
effective if such products are commercially available. This would be 
demonstrated through the use of ENERGY STAR or FEMP-designated 
products, or products that meet the applicable prescriptive 
requirements under ASHRAE 90.1 or the IECC.

H. Summary of the Differences Between the 2010 Proposed Rule and This 
Proposed Rule

    In this proposed rule, the Department makes a number of substantial 
changes from the 2010 proposed rule. The changes apply to both 10 CFR 
part 433 and 10 CFR part 435 unless otherwise noted. Details of these 
changes with a discussion of each are described in Section III. This 
proposed rule would:
     Add definitions for combined heat and power (CHP) system, 
proposed building, proposed building site electricity consumption, 
direct fossil fuel consumption of proposed building, district energy 
system, electricity source energy factor, fiscal year, floor area, 
fossil fuel generation factor, other fuels source energy multiplier, 
power purchase agreement (PPA), renewable energy certificates and 
renewable energy and CHP electricity deduction.
     Delete definitions for fossil fuel, fossil fuel 
consumption for electricity generation, and primary electrical energy 
consumption.
     Amend definitions for direct fossil fuel consumption, 
district energy system, electricity source energy factor, fossil fuel 
generation factor, and major renovation.
     Clarify applicability of the rule to major renovations.
     Clarify applicability of the rule to leased facilities.
     Replace the proposed maximum allowable fossil fuel-
generated energy consumption tables with new tables adjusted for each 
of DOE's 16 climate zones and covering additional commercial building 
types.
     Consider an approach to determine required fossil fuel-
generated energy consumption levels for major renovations that are 
limited to system or component level retrofits.
     Delete the Performance Rating Method in Appendix G of 
ASHRAE Standard 90-1.2004 and the IECC Simulated Performance 
Alternative as the means to calculate a baseline for building types not 
listed in the Commercial Buildings Energy Consumption Survey (CBECS) 
and the Residential Energy Consumption Survey (RECS), respectively. The 
expansion of building types would eliminate the need to develop 
alternative baselines.
     Include an alternative compliance method for buildings 
with process loads that are not included in CBECS and RECS. Clarifies 
that process loads of building types not included in CBECS are not 
subject to the fossil fuel reductions.
     Clarify performance level determination. Modify the 
calculation methodology and specify the electricity source factor and 
the fossil fuel generation factor to be used. Add a source energy 
multiplier for other fuels.
     Specify what qualifies as a renewable energy and CHP 
deduction, including renewable energy produced off-site by the agency, 
renewable energy acquired pursuant to a power purchase agreement, 
Renewable Energy Certificates and a pro-rated share of the electricity 
produced from a CHP system. Specify that renewable energy production 
must be additive, that it must be tracked, and that the renewable 
energy attributes must be retained.
     Clarify how district heating and cooling systems and 
combined heat and power systems are to be considered in determining 
compliance with the fossil fuel reductions.
     Move the discussion of petitions for downward adjustment 
into its own subsection.
     Allow GSA-tenant agencies to submit a petition for 
downward adjustment.

[[Page 61698]]

     Add information to be included in petitions for downward 
adjustment for new buildings, including a demonstration that all energy 
efficiency measures and on-site renewable energy measures that are 
life-cycle cost-effective have been included in the design; a 
description of technologies that were evaluated and rejected, including 
a justification for why they were rejected; and a description of the 
building and building energy-related features.
     Provide an address to which petitions must be submitted 
and clarify that DOE would respond to petitions within 90 days.
     Provide streamlined processes for Federal agencies to 
petition for a downward adjustment for major renovations.

III. General Discussion and Response to Comments

A. Overview

    DOE received comments from 22 different entities. In addition, 
10,677 form letters were received in a campaign coordinated by 
Earthjustice, some of which included unique comments (hereinafter 
referred to collectively as ``Form Letters.'')
    The comments were analyzed and categorized into six major 
categories: Applicability, Baseline, Methodology, Impacts, Petition for 
Downward Adjustment, and Guidance. Each of these major categories was 
subdivided into at least four subcategories, leading to the final 
comment categorization shown below.
    Applicability: costs to determine $2.5 million threshold; the 
effective date of the rule; definition of major renovations; 
applicability to single or multiple buildings; treatment of leased 
buildings and mixed use buildings; Federal buildings overseas; 
residential building categories; privatized military housing; 
coordination with the DOE rulemaking on sustainable design practices; 
and other.
    Baseline: CBECS and RECS baseline; climate adjustment; whole 
building simulation; buildings with energy-intensive process loads not 
covered in CBECS and RECS; plug and process loads; differentiation 
between fossil fuels; differentiation of electric power mix by region; 
using the marginal source of electricity; treatment of residential 
common areas; and other.
    Methodology: additional rounds of review of the rule; off-site 
renewable energy; source versus site energy; on-site energy generation; 
fuel conversion efficiency; and other.
    Impacts: cost impacts and other.
    Petition for downward adjustment: bundling of petitions; costs as 
grounds for a petition; DOE review process; information in petitions; 
public availability of petitions; stringency of petition requirements; 
GSA-tenant agencies; and consideration of technical impracticability.
    Guidance: training and verification and monitoring.
    Most of the issues are the same for both commercial buildings 
(including multi-family residential buildings four stories or more) and 
residential buildings. Therefore, the discussion below applies to both 
building categories unless otherwise noted.

B. Scope and Applicability of the Proposed Rule

    This section discusses the scope, or applicability, of the rule as 
proposed in response to comments received to date. This section 
provides preliminary responses related to: (1) What costs should be 
considered when calculating whether a construction project meets the 
$2.5 million threshold in EISA 2007; (2) when the rule goes into 
effect; and (3) which new construction and major renovation projects 
are covered by today's rule.
1. Determining the $2.5 Million Threshold for Applicability of the Rule
    As noted above, the proposed rule would apply to new Federal 
buildings and major renovations to Federal buildings that are: (1) 
``public buildings'' as defined by 40 U.S.C. 3301 for which a 
prospectus to Congress is required under 40 U.S.C. 3307; or (2) 
buildings with construction or renovation costs of at least $2.5 
million in costs adjusted annually for inflation. (42 U.S.C. 
6834(a)(3)(D)(i)) (These buildings are collectively referred to as 
``EISA-covered buildings'' in this SNOPR.) DOE notes that the ECPA 
definition of ``Federal building'' was revised by EISA 2007. DOE is 
addresses this definition and the regulatory definition of ``new 
Federal building'' in this rulemaking. ECPA, as amended, defines 
``Federal building'' to mean any building to be constructed by, or for 
the use of, any Federal agency including buildings built for the 
purpose of being leased by a Federal agency, and privatized military 
housing. (42 U.S.C. 6832(6))
    DOE requested comments in the NOPR specifically on the definition 
of construction costs to determine which buildings meet the $2.5 
million threshold and would be subject to the fossil fuel reduction 
requirements. DOE noted that construction costs generally include 
design, permitting, construction (materials and labor), and 
commissioning costs, but that land and legal costs generally would not 
be included. 75 FR 63406.
    The American Gas Association (AGA) and the Department of Health & 
Human Services-Indian Health Service-Office of Environmental Health, 
Division of Engineering Services (DHHS-IHS-OEHE) agreed with the 
proposed definition. (AGA, No. 16 at p. 4; \7\ DHHS, No. 24 at p. 1) 
The Edison Electric Institute (EEI) commented that the land and legal 
costs could be very high, and that all costs should be considered in 
any analysis. (EEI, No. 10 at p. 2)
---------------------------------------------------------------------------

    \7\ Notations of this form appear throughout this document and 
identify statements made in written comments or at public hearings 
that DOE has received and has included in the docket for this 
rulemaking. For example, ``AGA, No. 16 at p. 4'' refers to a 
comment: (1) From the American Gas Association; (2) in document 
number 16 in the docket of this rulemaking; and (3) appearing on 
page 4 of the submission.
---------------------------------------------------------------------------

    DOE preliminarily has decided that land and legal costs would not 
be included when determining the $2.5 million threshold. Legal costs 
are generally part of overhead costs, not construction costs. 
Concerning land costs, many new Federal buildings are built on land 
already owned by the Federal government. Moreover, it would be very 
challenging for agencies to determine the value of the land in these 
cases where there is no recent land purchase. Not including land costs 
for new Federal buildings in the threshold calculation would be 
consistent with the threshold calculation for major renovations, for 
which land costs are not a concern.
    In addition to comments specifically about land and legal costs, 
AGA and the National Propane Gas Association (NPGA) both questioned 
whether the cost of compliance with the fossil fuel consumption 
reductions would be included when determining whether the $2.5 million 
applicability threshold is met. (AGA, No. 17 at p. 6; NPGA, No. 23 at 
p. 3) NPGA also expressed concern that the threshold is too low. (NPGA, 
No. 23 at p. 3)
    DOE believes that it could be difficult to separate the costs of 
complying with the requirements of this rule from other design and 
construction costs. Conversely, it may be difficult to calculate the 
cost of a project including the costs to comply with the fossil fuel 
reduction requirements in those instances in which an agency would be 
seeking a downward adjustment. DOE anticipates that design and 
constructions costs for most new Federal buildings, and many

[[Page 61699]]

renovations to Federal buildings, will exceed $2.5 million. Therefore, 
DOE proposes that the $2.5 million threshold does not include the cost 
of complying with the reductions and requests comment on this proposal.
2. Compliance Date of the Rule
    The NOPR stated that the requirements would apply to all eligible 
buildings for which design for construction began at least one year 
after publication of the final rule. 75 FR 63415. The Department of 
Defense-Air Force (DOD-AF) asked that the rule apply to projects 
programmed after the date the rule is final. (DOD-AF, No. 25C at p. 3) 
The majority of the comments on this issue suggested not delaying the 
rule. The Natural Resources Defense Council (NRDC) and the Form Letters 
stated that the rule should be finalized and implemented immediately, 
and AGA commented that the target reductions should be promulgated as 
soon as administratively practicable. (NRDC, No. 14 at pp. 13-14; Form 
letter, No. 29 at p. 1; AGA, No. 16 at p. 2) NRDC commented that the 
rule is already late, and recommended that ``design for construction'' 
be interpreted to mean the initiation of the schematic design phase. 
(NRDC, No. 14 at pp. 13-14) NRDC also commented that DOE should 
interpret the fossil fuel-generated reduction tables in EISA 2007 to 
apply to the date of initial occupancy rather than the date that design 
begins. (NRDC, No. 14 at p. 15)
    DOE proposes to retain the compliance date, tied to the design of 
the building, as proposed in the NOPR. Federal agencies are familiar 
with this date as it is consistent with the compliance date that DOE 
has used for baseline Federal building energy efficiency standards at 
10 CFR parts 433 and 435 for several years. Under 10 CFR parts 433 and 
435, ``design for construction'' means the stage when the energy 
efficiency and sustainability details (such as insulation levels, HVAC 
(heating, ventilating, and air-conditioning) systems, water-using 
systems, etc.) are either explicitly determined or implicitly included 
in a project cost specification. This proposed rule would add a closely 
related definition of ``proposed building'' to tie the ``design for 
construction'' definition to the fossil fuel-generated energy 
consumption determination equation in the rule. A proposed building 
would be the design for construction of a new Federal commercial, 
multi-family high-rise residential building, or low-rise residential 
building, or major renovation to such a building, proposed for 
construction. This definition was not proposed in the NOPR. DOE intends 
that the addition of this definition would help clarify terms in the 
fossil fuel-generated energy consumption determination equation.
3. Major Renovations
    ECPA requires that fossil fuel reductions be implemented in ``major 
renovations'' to EISA-covered buildings. The Sustainable Design NOPR 
would define major renovation to include changes to a building that 
provide significant opportunities for substantial improvement in energy 
efficiency and renovations of any kind with costs that exceed 25 
percent of the replacement value of the building, and requested 
comments on the definition. 75 FR 29942. Because DOE had assigned the 
definition to the Sustainable Design Rule with the expectation that it 
would serve for both rules, DOE did not include the definition in the 
NOPR for this rule. However, this supplemental proposed fossil fuel-
generated reduction rule is now being published prior to a final 
Sustainable Design rule, so DOE has modified the major renovation 
definition proposed in the Sustainable Design rule to align more 
closely with today's fossil fuel-generated reduction supplemental 
proposed rule.
    Nonetheless, DOE received several comments related to major 
renovations for this rulemaking. NRDC commented that the scope of the 
rule should be broadened to apply to all new Federal buildings in order 
to meet the requirements of EISA 2007. (NRDC, No. 14 at p. 2) The 
American Public Gas Association (APGA) commented that the 25 percent 
threshold amount is too low. (APGA, No. 17 at p. 2) Both the Department 
of Defense-Navy (DOD-N) and DOD-AF recommended that DOE limit the rule 
to major renovations that cost 50 percent or more of the building 
replacement value, as that is the definition they use internally for 
their facilities. (DOD-N, No. 25B at p. 11; DOD-AF, No. 25C at p. 5) 
DOE also received two comments about renovations spanning more than one 
year. NRDC commented that DOE must define ``construction project 
costs'' to be the total planned or budgeted project costs for the 
renovation, irrespective of whether the project spans more than one 
fiscal year or whether the agency has yet to receive full funding. 
(NRDC, No. 14 at p. 5) APGA commented that by not including renovation 
activities that potentially could occur in future fiscal years, that 
energy saving capital-expenditure renovations will be deferred to 
future fiscal years and could end up producing a negative net energy 
and greenhouse gas emissions return for renovation dollars expended. 
(APGA, No. 17 at p. 6)
    Based on the comments received, DOE is proposing to not include the 
25 percent cost limit in the definition of ``major renovation.''
    Regarding the issue of renovating a Federal building in phases over 
more than one year, the applicability of the requirements are again 
tied to the design for construction. If the cost of the design for 
construction, although performed in different phases, would trigger 
application of the fossil fuel requirements and the phases are known in 
advance, the fossil fuel requirements would apply. The construction 
phases should be planned such that the fossil fuel reductions are 
achieved by the time the entire project is complete.
    DOE proposes to clarify how the requirements would be applied to 
portions of a building or individual systems being renovated as part of 
a major renovation. DOE does not intend to require Federal agencies to 
meet the fossil fuel-generated reduction requirements for an entire 
building when an agency renovation is limited to system or component 
level retrofits. DOE proposes that the fossil fuel reduction 
requirements apply only to the fossil fuel consumption associated with 
the portions of the building or building systems that are being 
renovated and only to the extent that the scope of the renovation 
provides an opportunity for compliance with the applicable fossil fuel-
generated energy consumption reduction requirements.
    This addition to the regulatory language would direct Federal 
agencies to determine whether the extent of the renovation allows for 
compliance with the requirements. For example, a renovation that 
overhauls a major energy-consuming system (e.g., lighting, HVAC, 
envelope, etc.) is likely a major renovation subject to today's 
requirements because the renovation likely allows for compliance with 
the rule. Additionally, DOE proposes to distinguish between a major 
renovation that is a whole building renovation, and a major renovation 
that is limited to a system or component level retrofit.
    As reflected in the comments received, DOE acknowledges that it 
would often be technically impracticable in light of an agency's 
specified functional needs to meet the requirements of today's rule 
during a major renovation. A major renovation could range from what is 
essentially a ``gut rehab'' or total replacement of all building 
systems without replacement of the building structure itself to a 
replacement of a single system or piece of equipment to replacement of 
several

[[Page 61700]]

systems in a building. DOE believes that given the $2.5 million or 
``public building'' threshold, the fossil fuel-generated energy 
consumption requirement will primarily apply to Federal commercial 
buildings. The Department notes, however, that the rule could apply to 
certain multi-family housing that costs at least $2.5 million that is 
built by or for the use of any Federal agency, including buildings 
built for the purpose of being leased by a Federal agency and 
privatized military housing.
    With a complete whole building renovation, the building is stripped 
down to its structural elements and all new systems (including 
envelope, lighting, HVAC, and water heating systems) are installed. 
Generally, the designer of the renovation has less flexibility in 
design than the designer of a new building. There are also limitations 
on whole building renovations that may not be present with new 
construction. The geometry, orientation, and location of the building 
structure on the building lot are likely to be fixed. As noted, a whole 
building renovation is one in which a building is gutted to the level 
of its structural elements. The structural elements of the building 
should not have a major impact on the fossil fuel-generated energy 
consumption of the building. The fossil fuel reduction baseline and 
requirements derived from EIA's CBECS, www.eia.doe.gov/emeu/cbecs, 
relate to entire building fossil fuel-generated energy consumption, not 
the fossil fuel consumption of individual systems. The level of fossil 
fuel consumption impacted through a whole building renovation is 
comparable to that consumption proposed in the appendices to this 
proposed rule; i.e., both the subject energy consumption and the 
maximum permitted amount of energy consumption are at the whole 
building level. Therefore DOE proposes that the requirements and 
methodologies applicable to new construction would be applicable to 
major renovations that are whole building renovations.
    Major renovations that are limited to system or component level 
retrofits, have additional practical limitations for reducing fossil 
fuel-generated energy consumption. Based on the DOE Buildings Energy 
Databook, DOE has estimated the contribution of major energy related 
systems to a commercial building's energy use for primary energy.\8\
---------------------------------------------------------------------------

    \8\ Based on Table 3.1.4 of the DOE Buildings Energy Databook 
(https://buildingsdatabook.eere.energy.gov/TableView.aspx?table=3.1.4).

        Table III.1--Contribution of Energy Use by Major Systems
------------------------------------------------------------------------
                                                                Percent
------------------------------------------------------------------------
Lighting.....................................................         20
Space Heating................................................         16
Space Cooling................................................         15
Ventilation..................................................          9
Refrigeration................................................          7
Electronics..................................................          4
Water Heating................................................          4
Computers....................................................          4
Cooking......................................................          1
Other........................................................         15
Adjust to SEDS *.............................................          5
                                                              ----------
  Total......................................................        100
------------------------------------------------------------------------
* SEDS (States Energy Data System) is used by the U.S. Energy
  Information Administration to resolve discrepancies between data
  sources.

    There have been improvements in the efficiencies of the systems and 
components as compared to that which was present in the buildings 
reported under the 2003 CBECS and 2005 RECS databases.\9\ A comparison 
of equipment efficiency changes for chillers and boilers (two pieces of 
equipment likely to be involved in a major renovation) from the 
original 1975 ASHRAE Standard 90-75, Energy Conservation in New 
Building Design, to the present FEMP-designated efficiency requirements 
for these pieces of equipment showed cooling end-use savings of up to 
34 percent and heating end-use savings of up to 11 percent.\10\ The 
same analysis report shows a similar comparison for lighting indicated 
a potential savings of up to 52 percent of the lighting load if 
lighting power density requirements from ASHRAE 90.1-2010 were compared 
with those found in ASHRAE 90A-1980. However, many Federal buildings 
have likely already undergone some lighting renovation, so it may be 
unlikely that a Federal building still has a lighting system based on 
1980 standards. Therefore, even if the subject energy use is limited to 
the energy use of the retrofitted system or component, the improvements 
in energy efficiency as compared to the systems and components in the 
typical CBECS building are not sufficient to meet the required 
reductions. If the impact of the efficiency improvements between 
current systems and components and those represented in CBECS is 
considered in the whole building context, a typical commercial building 
would realize whole building fossil fuel savings of 3 percent for 
cooling, 2 percent for heating, and 7.5 percent for lighting.
---------------------------------------------------------------------------

    \9\ See discussion below in Section C. Establishing and Using 
the Baseline.
    \10\ See Simulation Analyses in Support of DOE's Fossil Fuel 
Rule for Single Component Equipment and Lighting Replacements by M 
Halverson and W Wang of Pacific Northwest National Laboratory at 
https://www.pnl.gov/main/publications/external/technical_reports/PNNL-22887.pdf.
---------------------------------------------------------------------------

    For these reasons, for major renovations that are less than whole 
building renovations (system or component level retrofits) DOE is 
proposing establishing the maximum allowable energy use in fiscal years 
2013 through 2029 based on the percentage of whole building energy 
consumption represented by the retrofitted system or component. The 
applicable value from the appendices in today's rule would be 
multiplied by this percentage to arrive at the maximum allowable energy 
use of the retrofitted system or component. DOE requests comment on 
whether further direction would be required on how to distinguish 
between a major renovation that is a whole building renovation and one 
that is a system or component level retrofit, and requests comment on 
how such a distinction could be made.
    To further address issues related to major renovations, while 
ensuring that a fossil fuel-generated energy reduction is attained 
during a renovation, today's rulemaking would require both that Federal 
agencies achieve specified energy efficiency levels before applying 
off-site renewable energy generation and before petitioning for a 
downward adjustment. Again, the proposed rule would distinguish between 
whole building renovations and system and component level retrofits. 
These changes are described further in the ``Off-Site and On-Site 
Renewable Energy and Renewable Energy Certificates'' and ``Downward 
Adjustments for Major Renovations'' sections.
4. Multiple Buildings
    DOE received one comment from DOD-AF asking whether the $2.5 
million threshold for applicability of the rule would apply to 
individual buildings or to projects which may have two or more 
buildings. (DOD-AF, No. 25C at p. 2)
    DOE has preliminarily determined that the $2.5 million threshold 
should apply to individual buildings to determine if they are covered 
buildings under this rule. The statute mandates that the requirements 
apply to ``buildings,'' not ``projects'' or ``developments.''
5. Leased Buildings
    EISA 2007 modified the ECPA definition of ``Federal buildings'' to 
include any building to be constructed by, or for the use of, any 
Federal agency.

[[Page 61701]]

This term includes buildings built for the purpose of being leased by a 
Federal agency and privatized military housing. (42 U.S.C. 6832(6)) In 
addition, the NOPR limited application of the rule to renovations of 
leased buildings to only those renovations for which a Federal agency 
has significant control over the renovation design. 75 FR 63405.
    NRDC commented that there is a disconnect between the rule scope 
and the ECPA definition, which NRDC believes does not permit the 
exclusion of buildings that have been built for the purpose of being 
leased by a Federal agency. (NRDC, No. 14 at pp. 4-5) The U.S. Army 
Corps of Engineers-North Atlantic Division (NAD) commented that it 
seemed more appropriate to cover Federally leased buildings via the 
existing EISA 2007 section 435 rules, which require new Federal agency 
leases to be for ENERGY STAR labeled buildings, since existing 
buildings will be difficult to retrofit to meet these fossil fuel 
reductions. (NAD, No. 19 at p. 2) Department of Defense-Office of Under 
Secretary of Defense (DOD-OUSOD) recommended against applying the rule 
to any building whose design is not completely under the control of 
Federal agencies, and suggested that the rule should just state this 
principle and allow the agencies to apply their own judgment. (DOD-
OUSOD, No. 25A at p. 1) EEI asked if there would be a minimum lease 
period. (EEI, No. 10 at p. 2)
    DOE preliminarily has decided to remove the ``significant control'' 
provision for leased buildings covered under today's rule because the 
ECPA definition of ``Federal building'' makes clear that the rule 
applies only to buildings built specifically for the Federal 
government. Significant control, therefore, is implicit in the 
definition.
    DOE is aware that compliance with today's rule for small buildings 
or spaces that are leased for relatively short periods of time may not 
be possible. DOE also recognizes that at least two Federal agencies 
utilize contracts for short-term leases. Therefore, DOE requests 
comment on whether there should be a minimum lease period or a minimum 
rentable square footage threshold.
6. Federal Buildings Overseas
    The DOD-N commented that including overseas facilities in the 
definition of Federal building may lead to circumstances where the 
agency does not have complete control over the design, or where other 
technical factors challenge the practicality of meeting the fossil 
energy reductions. (DOD-N, No. 25B at p. 8) DOE recognizes that several 
agencies have buildings overseas and these buildings may be subject to 
a variety of legal authorities specific to that agency. DOE intends 
that the proposed rule would apply to the extent that the requirements 
are consistent with applicable law. DOE does not intend for the rule to 
cause any Federal agency to violate other legal authorities. This 
proposed rule does not expressly address the extent to which it may be 
applicable to buildings overseas as each individual agency is best 
positioned to understand the various and sometimes unique authorities 
that may be applicable to overseas buildings of that agency. In 
applying the proposed rule to any given building, Federal agencies must 
also decide whether the building meets the definition of Federal 
building at 42 U.S.C. 6832(6) and either the requirement that the 
building be a ``public building'' for which a prospectus is required, 
or the requirement that the building or major renovation cost at least 
$2.5 million. (42 U.S.C. 6834(a)(3)(D)(i)) For covered overseas 
facilities, Federal agencies should use the U.S. climate zone most 
similar to the location of the proposed building.
7. Residential Buildings
    DOE received four comments related to the definition of residential 
building categories. Lish commented that the rule definition should 
include housing facilities owned and managed by Federal agencies, such 
as the National Park Service, Forest Service, and other land management 
agencies. (Lish, No. 13 at p. 1) The DOD-AF requested that dormitories 
be removed from the proposed rule because of cost. (DOD-AF, No. 25C at 
p. 6) DHHS-IHS-OEHE believes there is an inconsistency between the 
reference to manufactured homes and mobile homes in the rule and in 
RECS. (DHHS, No. 24 at p. 3)
    DOE does not believe any changes to the proposed language in the 
NOPR are needed as a result of these comments. The statute requires the 
inclusion of all Federal buildings that are EISA-covered buildings. 
Some of the building types discussed by commenters may not meet the 
definition of ``public building'' at 40 U.S.C. 3301(a)(5) or may not 
require a prospectus to Congress as described at 40 U.S.C. 3307, but 
may meet the $2.5 million construction cost threshold. Some of the 
referenced buildings may not meet either threshold. Finally, DOE does 
not believe there would be an inconsistency between the reference to 
manufactured and mobile homes in the rule and in the RECS database. For 
purposes of the RECS database, manufactured and mobile homes are the 
same product. They are both defined as a housing unit built to the 
Federal Manufactured Home Construction and Safety Standards (24 CFR 
part 3280), built on a permanent chassis and moved to a site.
8. Privatized Military Housing
    DOD-AF stated that DOE should clarify that the rule does not apply 
to privatized military housing because, in DOD-AF's view, privatized 
military housing is not ``leased by a Federal agency.'' (DOD-AF, No. 
25C at p. 2) In addition, DOD-AF is concerned that the proposed rule 
may cause many AF Privatized Housing deals that have already been 
closed to be canceled or renegotiated if they have to comply with the 
fossil fuel reduction requirements. (DOD-AF, No. 25C at p. 1)
    As noted above, EISA 2007 modified the ECPA definition of ``Federal 
building'' to apply to any building to be constructed by, or for the 
use of, any Federal agency. Such term shall include buildings built for 
the purpose of being leased by a Federal agency, and privatized 
military housing. (42 U.S.C. 6832(6)) In addition, Congress again 
mentioned privatized military housing in ECPA when it specified that, 
``with respect to privatized military housing, the Secretary of 
Defense, after consultation with the Secretary [of Energy] may, through 
rulemaking, develop alternative criteria to those established in 
subclauses (I) [fossil fuel reduction requirements] and (III) 
[sustainable design requirements] of clause (i).'' (42 U.S.C. 
6834(a)(3)(D)(vi)) Although privatized military housing may not meet 
the definition of ``public building'' at 40 U.S.C. 3301(a)(5), the 
proposed rule would apply to privatized military housing with 
construction costs of at least $2.5 million. As described in this 
preamble, this cost threshold would apply on an individual building 
basis.
9. Other
    A few miscellaneous comments were submitted regarding the scope of 
the rule that did not fit into one of the above subcategories. One 
comment was submitted by an anonymous commenter and encouraged the use 
of vacant buildings rather than new construction. (Anon, No. 27 at p. 
1) There is nothing in ECPA that would prevent the reuse of vacant 
buildings.
    Earthjustice requested data on the number of new buildings and 
renovations that are likely and projected to be covered by this rule. 
(EJ, Public Meeting Transcript, at p. 69) For purposes of developing 
this supplemental proposed rule, DOE assumed that the Federal 
government

[[Page 61702]]

constructs 42 million square feet of new construction per year and 
renovates 14.6 million square feet per year. This assumption is based 
on the analysis of three years of construction data purchased by PNNL 
as part of a commercial building construction dataset. The data is 
described in ``Weighting Factors for the Commercial Building Prototypes 
Used in the Development of ANSI/ASHRAE/IESNA Standard 90.1-2010'', 
(Jarnagin and Bandyopadhyay, 2010). Data from the years 2007, 2008, and 
2009 were used.
    Based on these analyses and assumptions, DOE expects that 44.6 
million square feet of Federal building stock would be subject to this 
regulation each year. Over the next twenty years, DOE expects that this 
rulemaking would affect approximately 892 million square feet of 
Federal floor space. This represents less than 25 percent of the total 
Federal building stock in 2030, and about a quarter of one percent of 
the total residential and commercial building floor space in the U.S. 
in 2030.

C. Establishing and Using the Baseline

    The CBECS and RECS data, which can be found at https://www.eia.doe.gov/emeu/cbecs/contents.html and at https://www.eia.gov/emeu/recs/contents.html, are based on actual reported energy use over a 
large sample of buildings, normalized for size to thousands of British 
thermal units per square foot of floor space (kBtu/ft\2\). For purposes 
of this rulemaking, the statute directs DOE to establish a baseline 
based on the energy consumption in similar buildings in fiscal year 
2003 as measured by CBECS and RECS.
    One characteristic of buildings reported in the surveys is their 
age, or vintage.\11\ The 2003 CBECS estimates of building vintage range 
from pre-1920 buildings (representing the oldest) to the 2000-2003 
years, which are the newest buildings in the 2003 CBECS.\12\ An 
analysis of the CBECS data indicates that 39 percent of the surveyed 
buildings were constructed prior to the publication of a standard 
energy code; the first widely recognized building energy codes were 
developed and published in 1975.\13\ Furthermore, DOE estimates that an 
additional 17 percent of the surveyed buildings were built before the 
architecture and construction industry recognized and used ASHRAE 90-75 
nationally; i.e., 1980. Therefore, an estimated 56 percent of the 
buildings surveyed were constructed prior to 1980.\14\ The ``typical 
building'' in the 2003 CBECS was likely built between 1970 and 1979.
---------------------------------------------------------------------------

    \11\ https://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set1/2003pdf/a1.pdf.
    \12\ Because of the criteria for buildings subject to the 
requirements, DOE has initially determined the proposed requirements 
would apply primarily to commercial buildings. As such, DOE has 
focused this discussion on CBECS.
    \13\ ASHRAE Standard 90-75, Energy Conservation in New Building 
Design, August 1975.
    \14\ DOE estimates that even more than 56% of the surveyed 
buildings would have used 90-75, since the adoption of the 1980 
standard was delayed two years.
---------------------------------------------------------------------------

    The ASHRAE code is revised on a three year cycle. The version of 
the ASHRAE code that is applicable to new Federal commercial buildings 
for which design for construction began on or after August 10, 2012, is 
ASHRAE 90.1-2007. 10 CFR 433.4(a)(2). As compared to ASHRAE 90-75, 
ASHRAE 90.1-2007 has an energy efficiency improvement of approximately 
30 percent.\15\ ASHRAE 90.1-2010 adds an additional energy efficiency 
improvement of approximately 18.5%.\16\ Although the average building 
in the 2003 CBECS would have been built to ASHRAE 90-75, it is 
important to note that in the course of the lives of these buildings, 
building system components have been replaced over time so that the 
energy consumption as surveyed in 2003 will not be the same energy 
level the building used when first constructed. Even so, the energy 
efficiency improvements that are already required for the design of new 
Federal buildings would achieve a substantial portion of the fossil 
fuel-generated energy consumption reductions required in the interim 
years up to FY 2020. DOE has data that would indicate that Federal 
offices in Climate Zones 1a (Miami, Florida), 4c (Salem, Oregon), and 
5a (Chicago, Illinois) as constructed to the requirements of the 
Federal baseline standard (90.1-2010) are approximately at the 65% 
Fossil Fuel Reduction level for government offices. Buildings 
constructed to be 30% better than 90.1-2007 (as required in the Federal 
standards if life-cycle cost-effective) will achieve more than 65% 
Fossil Fuel Reduction level for government offices. This is especially 
true considering that new Federal buildings must be designed to achieve 
an energy efficiency improvement 30 percent beyond the referenced 
ASHARE code to the extent life cycle cost effective.
---------------------------------------------------------------------------

    \15\ ASHRAE Journal article titled ``35 Years of Standard 90.1'' 
in March 2010. https://www.ashrae.org/File%20Library/docLib/Public/20100625_ASHRAEDAJ10Mar0220100301.pdf.
    \16\ See DOE's final determination notice on Standard 90.1-2010 
at 76 FR 64904 (October 19, 2011) or https://www.gpo.gov/fdsys/pkg/FR-2011-10-19/pdf/2011-27057.pdf.
---------------------------------------------------------------------------

    The CBECS and RECS data are reported at a high level. At the 
highest level, the utility of the data is limited in terms of climate 
zones and building types. However, CBECS and RECS microdata allow 
additional analysis and refinement. Recognizing the importance of 
climate on building energy use, as well as the limitations in CBECS and 
RECS, in the NOPR, DOE asked several questions about refinements to the 
CBECS and RECS data by different categories. The questions included 
whether the baseline should be adjusted for climate, how to treat plug 
and process loads, whether the rule should differentiate between fossil 
fuels, and whether the rule should include a regional adjustment to the 
fossil fuel component of the electric power mix. These and other issues 
are further addressed below.
1. CBECS and RECS Baselines
    As previously indicated, the statute directs DOE to establish a 
baseline for the fossil fuel-generated energy consumption requirements 
using CBECS and RECS data from fiscal year 2003. A preliminary survey 
of the CBECS data indicates that the average building in the 2003 CBECS 
was subject to the 1975 version of the ASHRAE building code for 
commercial buildings.\17\
---------------------------------------------------------------------------

    \17\ DOE has preliminarily determined that the building criteria 
that determine applicability of the requirements would result in 
primarily commercial buildings being subject. As such, DOE has 
focused on commercial buildings.
---------------------------------------------------------------------------

    The building type definitions for commercial buildings used in the 
NOPR were based largely on the CBECS and RECS glossaries, with minimal 
modifications for regulatory clarity. For a commercial building type 
not listed in CBECS, the NOPR proposed that agencies establish a 
baseline for the proposed design using the procedures in Appendix G, 
Performance Rating Method, of ASHRAE Standard 90.1-2004. For 
residential building types not listed in RECS, agencies would develop a 
baseline using the Simulated Performance Alternative from section 404 
of the IECC, 2004 Supplement Edition.
    DOE requested comments on the building type categories and 
definitions. Most of the comments DOE received related to how to 
establish a baseline for building types not listed in the tables 
derived from CBECS and RECS.
    The American Society of Heating, Refrigeration and Air Conditioning 
Engineers Standard 100 Revision Committee Standard (ASHRAE Standard 100 
Committee) commented that an analysis by DOE's Oak Ridge National 
Laboratory (ORNL) determined that there is sufficient data in CBECS to 
establish energy consumption targets for 48 building types, and 
recommended

[[Page 61703]]

that the rule be modified to do so. (ASHRAE, No. 8 at p. 1) ICC and the 
Institute for Market Transformation (IMT) endorsed the uses of the 
CBECS and RECS databases. (ICC, No. 11 at p. 3; IMT, Public Meeting 
Transcript, No. 7 at p. 26) DHHS-IHS-OEHE supported DOE's 
interpretation of the CBECS and RECS baselines and commented that 
building type definitions are appropriate, but requested clarification 
of the definition of health care (outpatient) facilities with 
diagnostic medical equipment. (DHHS, No. 24 at pp. 1, 3)
    EEI agreed with use of CBECS but commented that some buildings do 
not neatly fall into a building category. (EEI, No. 10 at p. 3) AGA 
encouraged the Department to develop more detailed procedures for 
building types not directly represented in the CBECS and RECS data, and 
believes the Department may engage stakeholders in this analysis. (AGA, 
No. 16 at p. 3) NAD and DOD-AF commented that the CBECS and RECS data 
does not cover some building types and larger buildings of a more 
industrial nature, such as military buildings, and requested 
information on how these will be included. (NAD, No. 19 at p. 1; DOE-
AF, No. 25C at pp. 3-4)
    Regarding the use of ASHRAE or the IECC, EEI recommended that 
ASHRAE 90.1-2004 should be allowed as an alternative to the IECC 2004 
Supplement for residential buildings without baseline data. (EEI, No. 
10.2 Cover Letter at p. 2) Several commenters noted that there would be 
a disparity between the baselines generated from CBECS and the 
baselines generated using ASHRAE 90.1-2004. (DHHS, No. 24 at p. 4; 
National Nuclear Security Administration, No. 9 at p. 1; EEI, No. 10 at 
p. 3; DOD-AF, No. 25C at p. 4) The Gas Technology Institute (GTI) 
proposed that DOE amend the ASHRAE Performance Rating Method to create 
a single reference building in order to be consistent with the CBECS 
database methodology, noting that DOE's Home Energy Score Tool 
methodology would be a superior approach. (GTI, No. 22 at p. 12) NIBS 
supported DOE's proposal to use Appendix G of ASHRAE Standard 90.1 and 
the IECC Simulated Performance Alternative, stating that these are 
probably the best alternatives to CBECS and RECS. However, NIBS noted 
there could be some issues with the quality of the baselines produced 
using these methods, and suggested certification of modelers and use of 
the COMNET protocols. (NIBS, No. 12 at p. 2)
    ICC and IMT stated that the CBECS and RECS data are in need of 
upgrading. NIBS encouraged DOE to expand sample sizes and improve the 
surveys going forward. (NIBS, No. 12 at pp. 1-2) DOE regularly updates 
and improves upon the CBECS and RECS. The versions of these surveys 
that DOE chose to use in today's rule (2003 CBECS and 2005 RECS) were 
based on Congressional direction in EPCA. DOE chose to use 2005 RECS 
data because the RECS was conducted in 2001 and 2005 but not 2003.
    DOE proposes to retain CBECS as the baseline for commercial 
buildings and RECS as the baseline for multi-family high-rise and low-
rise residential buildings with one exception. In the NOPR, DOE 
proposed to include the category ``multi-family in 5 or more units'' in 
the commercial building and multi-family high-rise residential building 
requirements. A ``multi-family high-rise residential building'' is a 
residential building that contains three or more dwelling units and 
that is designed to be four or more stories above grade. It is possible 
that a building could have four or more stories above grade, but fewer 
than five units. DOE believes that such buildings designs would be rare 
and would have energy consumption patterns similar to such buildings 
with five or more units. To avoid a potential gap in coverage of the 
building types, DOE proposes to use ``multi-family high-rise 
residential building'' in place of ``multi-family in 5 or more units.'' 
In addition, regarding the definition of health care (outpatient) 
facilities with diagnostic medical equipment, the reference to 
diagnostic equipment is from the current CBECS building types under 
which agencies have been reporting. DOE proposes that agencies continue 
to apply that term consistent with CBECS reporting.
    In response to comments, DOE preliminarily has decided to use the 
analysis from ORNL for the ASHRAE Standard 100 Revision Committee to 
expand the CBECS data from the twelve building categories used in the 
NOPR to the 48 commercial building types used in today's rule. (As 
noted in the NOPR, the phrases ``principal building activity'' and 
``building types'' are used interchangeably in CBECS and RECS 
documents. For the sake of consistency, this document only uses the 
phrase ``building type.'') While ORNL was conducting the climate 
adjustment for DOE, as DOE indicated it would conduct in the NOPR, it 
coordinated its work with the ASHRAE Standard 100 Revision Committee, 
which had a need for similar work. While developing the climate 
adjustment method, ORNL also developed a methodology to parse the CBECS 
and RECS microdata into more building types. As a result, as part of 
its public comment on today's rulemaking, the ASHRAE Standard 100 
Revision Committee requested that DOE use these building types. 
Although the reduction requirement for multi-family high-rise 
residential buildings comes from the RECS database, DOE proposes to 
include the requirements in the tables for 10 CFR part 433 to maintain 
the scope of coverage of part 433 versus part 435 building types.
2. Climate Adjustment
    The maximum allowable fossil fuel-generated energy consumption 
values in Tables 1 and 2 of the NOPR were based on national averages 
not adjusted for climate. The NOPR noted that the limited number of 
buildings surveyed by CBECS and RECS data does not always allow for a 
direct estimate of building energy use by climate zone and building 
type because there are only a few surveyed buildings that fit into some 
building type/climate zone groups. 75 FR 63406. However, DOE noted that 
it believed a climate adjustment is necessary to provide reasonable 
baselines and, therefore, stated that DOE is developing fossil fuel-
generated reduction requirements based on building type and then 
applying a climate zone as defined in the baseline energy efficiency 
standards at 10 CFR parts 433 and 435. 75 FR 63406. DOE requested 
comments on including a climate adjustment.
    Most of the comments DOE received regarding the climate adjustment 
were favorable. The ASHRAE Standard 100 Committee recommended that the 
maximum allowable consumption values for each of the CBECS and RECS 
building types be adjusted for each of the 16 climate zones developed 
by DOE's Pacific Northwest National Laboratory (PNNL) based on a 
simulation of prototype buildings meeting ASHRAE Standard 90.1-2004 
developed by DOE's National Renewable Energy Laboratory (NREL). 
(ASHRAE, No. 8 at p. 1) NIBS recommended utilizing the climate 
normalization techniques developed by EPA for the ENERGY STAR program. 
(NIBS, No. 12 at p. 4) ICC states that it believes that it is sensible 
to take into account regional climate variations, such as those 
recognized in the International Energy Conservation Code. (ICC, No. 11 
at p. 2) DHHS-IHS-OEHE and the American Institute of Architects (AIA) 
urged DOE to consider regional and climatic factors, and DHHS-HIS-OEHE 
suggested using the climate zones identified in ASHRAE 90.1 and IECC. 
(DHHS, No. 24 at p. 1; AIA, No. 15 at p. 2) GTI recommended the DOE 
Home

[[Page 61704]]

Energy Score Tool used for existing home ratings. (GTI, No. 22 at p. 
11) The National Park Service, Alaska Region (NPS-Alaska), recommended 
an alternative table of Alaskan climate zones. (NPS-Alaska, No. 6, p. 
1) EEI questioned how the adjustments are going to be calculated to 
address the limitations of the CBECS and RECS data. (EEI, No. 10 at p. 
3) AGA commented that a climate adjustment is logical for some loads, 
such as space conditioning, but requested more information about DOE's 
methodology. (AGA, No. 16 at p. 4)
    DOE proposes to include a climate adjustment. A climate adjustment 
places buildings in different climates on a more level-playing field. 
Under the proposed climate adjustments, buildings would have to achieve 
reductions commensurate to a baseline appropriate for their climate 
zone rather than a national average baseline. As a result, buildings in 
cold climates would have a higher target to account for the increased 
energy use associated with a cold climate, and buildings in warmer 
climates would have a lower target. This approach would ensure that 
buildings in both cold and warm climates achieve 55 percent reductions 
based on a climate-adjusted baseline, rather than the building in the 
cold climate having to achieve a deeper percentage reduction and a 
building in a warm climate having to achieve a lesser percentage 
reduction to meet the same absolute target based on a national average.
    For example, assuming a CBECS or RECS national average baseline 
fossil fuel use equals 100 kBtu/sq.ft. for a given building, at a 55 
percent reduction for FY 2010-14, the target fossil use becomes 45 
kBtu/sq.ft. However, a building in a cold climate may actually use more 
than the national average, perhaps 150 kBtu/sq.ft. The same building in 
a warm climate may actually use less, perhaps 50 kBtu/sq.ft. To meet 
the 55 percent reduction for the FY 2010-14 national average target of 
45 kBtus/sq.ft. without a climate adjustment, a building in a cold 
climate must achieve a reduction of 105 kBtus/sq.ft. (which would be an 
actual 70 percent reduction), while the same building in a warm climate 
would need to achieve a reduction of only 5 kBtus/sq.ft. (which would 
be an actual 10 percent reduction).
    Using the above example, the climate adjustment in today's rule 
would set the baseline at 150 kBtu/sq.ft. for the cold climate example, 
so a 55 percent reduction would make the target 67.5 kBtu/sq.ft. 
instead of 45 kBtu/sq.ft. In the warm climate example, the baseline 
would be 50 kBtu/sq.ft., and a 55 percent reduction would make the 
target 22.5 kBtu/sq.ft. instead of 45 kBtu/sq.ft. In other words, 
buildings in both the warm and cold climate zones have to achieve 55 
percent reductions but must meet that baseline relative to the climate 
adjusted baseline for the appropriate climate. The same logic applies 
to the 65, 80, 90, and 100 percent reductions. All covered buildings 
designed in FY 2030 or later would be required to meet the 100 percent 
reduction, regardless of climate.
    The maximum allowable fossil fuel-generated energy consumption in 
proposed Tables 1-4 of Appendix A of both part 433 for commercial 
buildings and multi-family residential buildings and part 435 for low-
rise residential buildings include adjustments for climate. The climate 
adjustments were developed by ORNL. ORNL developed national energy use 
intensities (EUIs) for over 50 building types from CBECS and RECS, and 
used zonal EUI ratios derived from building simulation modeling 
performed by the NREL to parse the building types into 16 different 
climate zones. The procedure is described in more detail in 
``Derivation of Federal Building Fossil Fuel Energy Use Reduction 
Targets,'' (ORNL/TM-2011/84, https://hyperion.ornl.gov/pubs/EISATargets.pdf). DOE's climate zone map is produced below for 
reference. The county-by-county climate zones are defined in the 
baseline standard for 10 CFR part 433--ASHRAE Standard 90.1-2010.

[[Page 61705]]

[GRAPHIC] [TIFF OMITTED] TP14OC14.000

3. Plug and Process Loads
    In addition to fossil fuel-generated energy consumption used for 
building-related functions such as lighting, HVAC, and envelope, 
equipment related to the use that occurs within the building also 
consumes fossil fuel-generated energy. This includes plug loads such as 
office equipment, personal computers, cash registers, and other such 
equipment that are typical to buildings. However, some building types 
also house process loads that are very energy-intensive relative to 
other building-related energy use.
    In the NOPR, DOE acknowledged that inclusion of plug and process 
loads in the methodology may make it more difficult to achieve the 
mandated fossil fuel-generated energy consumption reductions. DOE noted 
that all building energy consumption, including plug and process load 
consumption, is included in the baseline CBECS and RECS data and, 
therefore, proposed that plug and process loads would be subject to the 
fossil fuel reductions.
    DOE requested comments on how the proposed rule could be designed 
such that the assumptions used in the whole building simulations would 
accurately reflect the final building design and operation, including 
plug and process loads. 75 FR 63410. In this SNOPR, DOE clarifies that 
CBECS does not include building types with energy use dominated by 
process loads.
    Several comments were submitted relating to plug and process loads. 
Most comments received on plug and process loads expressed concerns 
about including process loads in the fossil fuel-generated energy 
consumption baselines, with particular concern about including energy-
intensive process loads. EEI, DHHS-IHS-OEHE, DOD-AF, ASHRAE 100, and 
AGA commented that process or plug and process loads should not be 
included in the calculations since these loads do not directly 
represent the building design attributions. (EEI, No. 10 at p. 6; DHHS, 
No. 24 at p. 4; DOD-AF, No. 25C at p. 5; ASHRAE, No. 8 at p. 2; AGA, 
No. 16 at p. 4)
    DOE received a number of comments from DOD suggesting that because 
many DOD facilities do not map to the CBECS building types, DOE should 
remove the process load component from the calculations or otherwise 
treat certain buildings with process loads differently. (DOD-AF, No. 
25C at p. 4; DOD-OUSOD, No. 25A at p. 2; NAD, No. 19 at p. 1;DOD-N, No. 
25B at p. 9) Otherwise, DOD-N noted, petitions for downward adjustment 
of the reduction requirement could consist predominantly of buildings 
dominated by process loads. (DOD-N, No. 25B at pp. 6, 9, 12) DOD-N 
recommended standardized building occupancy and use assumptions. (DOD-
N, No. 25B at p. 6)
    CBECS and RECS do not include building types with what are 
generally understood to be energy-intensive process loads. Process 
loads are typically metered separately and do not include energy 
consumed for maintaining comfort and amenities for the occupants of the 
building (including space conditioning and lighting for human comfort 
or convenience),

[[Page 61706]]

commercial equipment and office-related plug loads, and other loads 
whose energy use is included in the building categories in CBECS and 
RECS (such as medical equipment and commercial refrigeration). Energy-
intensive process loads would include, but not be limited to, 
activities such as manufacturing, painting, welding, metal work, 
fabricating, assembly, and data centers.
    In the proposed rule, the baseline for building types not in CBECS 
or RECS would have been determined by a whole building simulation, and 
the process loads would have been subject to the fossil fuel-generated 
energy consumption reduction requirements. DOE understands that it 
could be much more difficult for agencies designing buildings with 
energy-intensive process loads to comply with the requirements of 
today's rule than agencies designing buildings without process loads. 
It is more difficult to reduce process energy consumption, and the 
process activity is critical to the agency's purpose for the building. 
In addition, for buildings with energy-intensive process loads, the 
process loads tend to dominate the energy consumption of the building. 
As a result, DOE acknowledges that agencies with buildings with such 
process loads may be the agencies most likely to petition DOE for a 
downward adjustment of the standard if the process loads were subject 
to the fossil fuel reduction requirements. DOE also notes that plug and 
process loads are excluded from the baseline energy efficiency 
requirements for Federal commercial and multi-family high-rise 
residential buildings. (See 10 CFR 433.101)
    Based on these considerations, DOE proposes that for building 
categories and types not listed in CBECS with energy-intensive process 
loads, the process loads should not be subject to the fossil fuel-
generated energy consumption reduction requirements of this rule. These 
building types would remain subject to today's requirements by 
separating the process loads from the building and building-related 
loads as follows:
    1. Federal agencies with buildings with energy-intensive process 
loads would choose the CBECS building type (from Tables 1-4 of Appendix 
A) that most resembles the building as if it had no process loads. For 
example, industrial facilities and airplane hangars for painting/
plating would generally map to warehouses, and data centers would 
generally map to laboratories.
    2. Agencies would then find the appropriate target from Tables 1-4 
based on climate zone and fiscal year in which design for construction 
began for the underlying building type selected in Step 1. Because 
Tables 1-4 do not include these process loads, agencies would add to 
the target the estimated fossil fuel-generated energy use of the 
process loads to determine the maximum allowable fossil fuel-generated 
energy consumption for the proposed building. When estimating the 
process load, the agency would use the electricity fossil fuel 
generation factor and the electricity source energy factor defined in 
this rule to convert electricity into kBtu/sq.ft.
    3. To determine compliance, agencies would estimate the energy use 
and fossil fuel-generated energy consumption of the proposed building 
using the equation in section 433.201(a) (for CBECS) or 435.201(a) (for 
RECS), add the estimated process load from Step 2, and compare the 
result to the maximum allowable fossil fuel-generated energy 
consumption.
    DOE believes that this calculation for buildings with process 
loads, along with the expanded list of building types described 
earlier, would make it unnecessary to develop an alternative baseline 
using a simulated model as was proposed in the NOPR. The expanded list 
of building types is comprehensive and should cover virtually all 
building types and categories in the Federal sector. Agencies should be 
able to find a building type from the expanded list that closely 
resembles the building as if there were no process loads. Thus, DOE has 
deleted provisions in the proposed rule to develop alternative 
baselines using Appendix G of the Performance Rating Method in ASHRAE 
Standard 90.1-2004 or the IECC Simulated Performance Alternative. DOE 
believes this approach is simpler and clearer than the method proposed 
in the NOPR, and addresses the concerns and comments that were 
submitted.
    DOE seeks comment on three specific issues related to process 
loads:
    1. DOE recognizes that not all building categories or building 
types are equally represented in CBECS data. Additionally, energy use 
can vary widely within the same building category or type. Therefore, 
DOE requests additional comment on the treatment of process loads for 
building categories that are under-represented in CBECS, or where 
energy use varies widely. DOE also seeks comment on what parameters to 
use when determining that a building is under-represented in CBECS.
    2. In addition, DOE recognizes that buildings with high process 
loads must increase the capability of their HVAC systems beyond what 
the building would require absent the building's process-related 
mission. Therefore, DOE seeks further comment on whether and how to 
account for the increment of supplemental HVAC required to condition 
buildings with high process loads.
    3. DOE understands that agencies may not be uniformly equipped to 
submeter their process loads for the purposes of calculating their 
required fossil fuel reduction. Therefore, DOE requests comment on the 
degree to which agencies presently submeter process loads.
    Concerning plug loads, GTI suggested that the additional 
variability in plug loads is a legitimate issue, but suggested that it 
is an issue that can be addressed by a good engineering analysis during 
the design phase. (GTI, No. 22 at p. 12) EEI stated that the 
methodology must treat plug loads the same for purposes of both the 
baseline and the proposed design. (EEI, No. 7 Public Meeting 
Transcript, at p. 33-35)
    Plug loads are included in the building types reported by the CBECS 
and RECS databases. In addition, they generally do not dominate the 
building energy profiles like some process loads, and it is easier to 
achieve plug load reductions through the use of ENERGY STAR and other 
energy efficient products than it is to reduce process loads. As a 
result, DOE preliminarily has decided that plug loads would continue to 
be included in the baseline and would be subject to the fossil fuel 
reduction requirements.
4. Differentiate Between Fossil Fuels
    Some fossil fuels produce higher CO2 emissions than 
other fossil fuels, with coal being the highest and natural gas being 
the lowest. The NOPR noted that ECPA makes no distinction between 
fossil fuels for purposes of the required fossil fuel-generated energy 
consumption reductions addressed by this rule. 75 FR 63406 While the 
statute does not specifically direct DOE to consider variation in 
fossil fuels for purposes of this rulemaking, DOE stated that the 
statute does not prohibit DOE from taking the variation into account. 
With that in mind, DOE requested comments on whether all fossil fuels 
should be treated equally or whether each should be treated differently 
based on CO2 emissions or some other factor.
    DOE received several comments about differentiating between fossil 
fuels. The comments varied, although most favored differentiating 
between fossil fuels. DHHS-IHS-OEHE supported taking into consideration 
the actual CO2 emission factors of fossil fuel types and 
whether or not a fuel comes from

[[Page 61707]]

domestic or imported sources. (DHHS, No. 24 at p. 2) DOD-N, National 
Rural Electric Cooperative (NREC) and the General Services 
Administration--Office of Federal High Performance Green Buildings 
(GSA) also supported weighting fossil fuels based on their respective 
carbon footprints. (DOD-N, No. 25B at p. 4; NREC, No. 28 at p. 2; GSA, 
No. 26 at p. 2) The Office of the Deputy Under Secretary of Defense, 
Installations and Environment, Facilities Energy Directorate (ODUSD) 
believes such an approach would help, but recommended a thorough study 
of the potential cost impact prior to implementing such a policy. (DOD-
OUSOD, No. 25A at p. 3) GTI recommended that fossil fuel types be 
distinguished by their cost, efficiency and CO2 content. 
(GTI, No. 22 at p. 13) The AGA commented that the DOE should restrict 
its consideration only to fuel cycle issues, not carbon contributions 
of fuel cycles, because greenhouse gas emissions are not the dominant 
issue in this rulemaking. (AGA, No. 16 at pp. 4-5)
    DOE notes that ECPA establishes building design requirements based 
on ``fossil fuel-generated energy consumption'' of a building, not 
greenhouse gas emissions of a building or other factors that may 
differentiate fossil fuels. Upon reconsideration of the issue as it was 
proposed in the NOPR, DOE believes that applying the reduction 
requirements equally to all fossil fuel types is the best 
interpretation of the statute. As a result, DOE is not differentiating 
between fossil fuels in today's rulemaking.
5. Regional Fossil Fuel Factors
    To determine the fossil fuel-generated energy consumption of the 
buildings reported in CBECS and RECS, the fossil fuel component of the 
electricity used by the building was added to the building's direct 
fossil fuel consumption. To calculate the fossil fuel component of site 
electricity use, site electricity was multiplied by the percentage of 
electricity nationally that is produced from fossil fuels, referred to 
as the electricity fossil fuel generation factor for purposes of this 
rule. The factor was obtained by summing the electricity generated from 
fossil fuels (coal, oil, natural gas, and other gases) from Table 3.2.A 
of the Energy Information Administration (EIA) 2012 Electric Power 
Annual Report (https://www.eia.gov/electricity/annual/html/epa_03_02_a.html) and dividing it by the total electricity produced in 
the U.S. 75 FR 63407. According to Table 3.2.A, for 2003, the fossil 
fuel generation factor was 0.71, meaning that about 71 percent of all 
electricity in the U.S. is generated from fossil fuels. DOE chose to 
use the 2003 value in accordance with the statutory mandate that 
buildings be designed so that the fossil fuel-generated energy 
consumption of the buildings is reduced as compared with such energy 
consumption by a similar building in fiscal year 2003 (as measured by 
CBECS or RECS.) In addition, DOE notes that the fossil fuel generation 
factor has varied from 0.71 in 2003 to a peak of 0.74 in 2007 and back 
to 0.71 in 2012. DOE indicated in the NOPR that it was considering a 
regional approach to establishing the fossil fuel fraction associated 
with electricity, and asked for comments.
    Public comments were mixed, some supporting and some opposing the 
use of a regional fossil fuel factor. EEI questioned whether 
adjustments for regional electricity use would be made by census 
region, sub-census region, power pool region, by state, or by some 
other form of disaggregation. (EEI, No. 10 at p. 3) GSA also supported 
a regional approach. (GSA, No. 26 at p. 1) AGA supports use of a 
regional fossil fuel mix for electric generation based on eGRID 
subregional level data. (AGA, No. 16 at p. 4) The ICC supported the 
current proposed approach of using the national average, stating that 
it would be more efficient to simplify the requirements and smooth the 
differentials between buildings by using a national average fossil fuel 
generation factor. (ICC, No. 11 at pp. 2-3) GTI stated that for the 
purposes of national rulemaking, national average factors would be 
consistent with some of DOE's prior methodology and protocols. (GTI, 
No. 22 at p. 7) DHHS-IHS-OEHE and NIBS also support the national 
average fuel mix. (DHHS, No. 24 at p. 2; NIBS, No. 12 at p. 2) NAD 
stated that the electricity source energy factor and electricity fossil 
fuel-generation factor should be based on a regional approach. (NAD, 
No. 19 at p. 1)
    The difference in regional fossil fuel factors would not increase 
overall fossil fuel reductions, but would simply shift where reductions 
come from. Buildings in regions with high fossil fuel content in their 
electric power mix would require deeper reductions in electricity use 
than buildings in regions with lower fossil fuel content in their 
electric power mix. For agencies with buildings across the nation, the 
fossil fuel content of their buildings, in the aggregate, would tend 
toward the national average. Introducing regional differences adds 
complexity to the rule with little additional benefit.
    Finally, the source of electricity used in a region may be 
different than the source of electricity generated in that region. 
Power may be generated in one place, but shipped via the grid to 
another area for use. Utilities may purchase power from another utility 
or a merchant plant at a distant location. While data on power 
generation is readily available, data on where the electricity in an 
area comes from and how it was produced is more difficult to trace. 
This leads to the question of what the appropriate breakdown of region 
would be--utility district, state, power pool area, or interconnection 
grid.
    Based on these preliminary conclusions, DOE proposes to use the 
national electric power mix in determining the fossil fuel portion of 
electricity consumption in the rule. Using the national average fossil 
fuel factor is simpler for Federal agencies and DOE believes it would 
yield equivalent results. In addition, DOE proposes to calculate and 
post the value of the fossil fuel generation factor to be used each 
year on the FEMP Web site and as an update to this regulation\1\ rather 
than requiring agencies to refer to the Buildings Energy Data Book on 
an annual basis as was proposed in the NOPR.
---------------------------------------------------------------------------

    \1\ https://energy.gov/eere/femp/federal-energy-management-program.
---------------------------------------------------------------------------

6. Marginal Source of Electricity
    The NOPR stated that reductions in future electricity demand are 
likely to cause electric utilities to reduce the power supplied by 
those electricity generation units or sources that have the highest 
marginal costs. DOE believes that over the short and long-run, fossil 
fuel-powered units would have higher marginal costs than units powered 
by nuclear, hydropower, or renewable energy sources. DOE invited 
comments on whether marginal factors to estimate the fossil fuel 
consumption associated with electricity consumption should be 
considered, on grounds that marginal factors might better reflect the 
fossil fuel portion of new generating capacity that is being built. 75 
FR 63407. For example, if almost all new electricity generation 
capacity built for new demand in the coming years is from non-fossil 
sources of energy, then it might be reasonable for new Federal 
buildings to reduce only their locally consumed fossil fuel consumption 
and not focus on reducing electricity demand to meet the requirements 
of the rule.
    AGA commented that the rule should not use marginal electricity 
generation, noting that the most equitable means of including new 
``marginal'' generation into the electric grid is as additional

[[Page 61708]]

supply to the average mix. (AGA, No. 16 at p. 4) DOD-N recommended 
using marginal fossil fuel reduction factors, averaged nationally. 
(DOD-N, No. 25B at p. 4) NIBS commented that it would be appropriate to 
consider the time of such electricity use and its likely impact on the 
fossil fuel mix. (NIBS, No. 12 at p. 2) EEI was concerned that the 
electric grid is changing and the tools used by DOE in the rule are 
already out of date. (EEI, Public Meeting Transcript, No. 7 at p. 45) 
EEI commented that the source energy methodology looks backwards and 
does not account for the dynamic changes to electric generation that 
will be occurring over the next 20-30 years, and that DOE's 71 percent 
electric source factor nationwide is outdated and does not account for 
the states that have renewable portfolio standards. (EEI, No. 10 at p. 
3)
    DOE has considered the issue and is proposing not to use marginal 
electric source factors. The mix of new electric generating capacity 
added to the grid varies year-to-year. However, the amount of 
electricity generated from fossil fuels on an annual basis has varied 
from 68 percent to 72 percent over the past fifteen years, with no 
discernible trend. If new, marginal generating capacity were steadily 
becoming more fossil fuel-dependent or less fossil fuel-dependent, 
there would be a trend in how much electricity is produced from fossil 
fuel on an annual basis, but such a trend is not discernible in the 
current data. In addition, the load growth represented by buildings 
covered by this rule is likely too small relative to overall electric 
utility load growth to change utility decisions on investment in new 
generating resources. Furthermore, as the fossil fuel reduction 
requirement increases toward 100 percent for buildings for which design 
for construction begins in FY2030, the marginal factors will be less 
relevant because all fossil fuel use will be eliminated in any event. 
For these reasons DOE believes it would be best to continue to use 
average generating capacity for the fossil fuel generation factor 
rather than marginal generating capacity.
7. Residential Common Areas
    The NOPR stated that the RECS baseline for multi-family residential 
buildings only includes the energy use for individual dwelling units, 
not any associated conditioned common areas. DOE proposed applying the 
RECS-derived fossil fuel requirements to all applicable floor space, 
including both common and non-common areas. 75 FR 63408. Because common 
areas often have a lower energy intensity than individual dwelling 
units, using only non-common areas in the calculation for the proposed 
design's fossil fuel consumption is likely to result in a slightly 
higher maximum allowable fossil fuel-generated energy requirement than 
using both common areas and non-common areas in the calculation. This 
approach will make it easier for building designers to demonstrate 
compliance for a residential building overall. Because common areas 
account for only a small fraction of the floor space in multi-family 
residential buildings, however, the actual effect on fossil fuel 
reductions would be minimal.
    AGA and DHHS-IHS-OEHE supported application of the energy use 
values for non-common areas to all applicable floor space, common and 
non-common. (AGA, No. 16 at p. 4; DHHS, No. 24 at p. 4) Based on the 
rationale provided in the NOPR and the supporting public comments, this 
proposed rule continues the approach proposed in the NOPR.
8. Major Renovations
    As noted previously in this document, the CBECS and RECS data that 
provide the baseline for today's requirement are building level data. 
For major renovations that are whole building renovations, the maximum 
fossil fuel-generated energy consumption values generated from CBECS 
and RECS provide requirements that are comparable to the energy 
consumption of the whole building renovation. However, DOE believes 
that the maximum consumption levels presented in the proposed tables 
may not be appropriate for major renovations that are system or 
component level retrofits. As such, DOE is proposing that the 
requirements for system and component level retrofits would be based on 
percentage of whole building fossil fuel consumption represented by the 
retrofitted system or component. The applicable table value would be 
multiplied by this percentage to arrive at the maximum allowable energy 
use of the retrofitted system or component. DOE requests comment on 
this approach, as well as comment on other approaches that could be 
used to determine the requirement for system and component level 
retrofits.
9. Other
    Two additional comments were submitted that do not fit into one of 
the scope subcategories. EEI asked how mixed-use buildings would be 
treated. (EEI, Public Meeting Transcript, No. 7 at p. 19) The proposed 
rule required agencies to perform a building area-weighted average in 
order to determine the appropriate baseline for mixed-use buildings. 75 
FR 63407. The specific method to do this is found in section 
433.200(d)(3) of the proposed rule.
    NPGA thought a paradox existed in that the required reductions 
identified for years preceding FY 2030 may change and yet fossil fuel 
energy consumption reductions may not apply to Federal agencies until 
the regulations are finalized. (NPGA, No. 23 at p. 4) DOE notes that 
the specific percentage reduction requirements by fiscal year are 
defined by statute and cannot be changed by DOE. In the NOPR, DOE 
stated that DOE intends to revise the maximum allowable fossil fuel-
generated energy consumption tables, which are based on the required 
percentage reductions in the statute, to adjust for climate. 75 FR 
63408. DOE has done this in today's rulemaking. DOE acknowledges that 
the specific means to obtain the FY 2030 goal are not known today, but 
believes that advances in design practices and technology over the next 
20 years will make the requirement increasingly attainable.

D. Methodology To Determine Compliance

    Once the appropriate baseline fossil fuel-generated energy 
consumption has been determined for commercial buildings and multi-
family high-rise residential buildings and low-rise residential 
buildings, this rule provides the statutorily-mandated reduction 
requirements to those baseline consumption values. As noted in the 
NOPR, rather than setting standards by only listing the percentage 
reductions required, DOE has decided to deduct the statutorily-required 
percent reductions from the CBECS and RECS baselines to establish the 
maximum allowable fossil fuel-generated energy consumption for each 
building type and climate zone. 75 FR 63408. Establishing today's 
standard as an absolute value should simplify agency use and 
interpretation of this proposed rule.
1. Whole Building Simulation
    To determine energy use in the proposed design, DOE proposed in the 
NOPR that the fossil fuel-generated energy consumption of a proposed 
new Federal building or major renovation of a Federal building be 
estimated using the Performance Rating Method found in Appendix G of 
ANSI/ASHRAE/IESNA Standard 90.1-2004 for commercial and multi-family 
high-rise residential buildings, and the IECC 2004 Supplement for low-
rise buildings. 75 FR 63409. Because of the complexity involved in 
estimating fossil fuel-

[[Page 61709]]

generated energy consumption, this requirement would effectively 
require the use of a whole building simulation tool, which can be 
difficult and increase cost. As a result, DOE invited comments on 
alternatives to a whole building simulation.
    The ICC endorsed the use of the Simulated Performance Alternative 
found in IECC 2004, but suggested that the rule reference more recent 
versions. (ICC, No. 11 at p. 3) NRDC and NIBS commented that DOE should 
work with the energy modeling industry to standardize modeling 
assumptions and results provided by the simulation programs, and 
eventually certify modeling programs and users. (NRDC, No. 14 at p. 16; 
NIBS, No. 12 at p. 2) The International District Energy Association 
(IDEA) was concerned that the Performance Rating Method in Appendix G 
of ASHRAE Standard 90.1-2004 is based on energy costs, as it modifies 
the Energy Cost Budgeting Method in Chapter 11 of ASHRAE Standard 90.1. 
(IDEA, No. 21 at p. 2) DOE proposes that the estimated fossil fuel use 
of the proposed building be calculated in accordance with the 
provisions relating to ``the proposed design'' in the Performance 
Rating Method in Appendix G of ASHRAE 90.1-2007. Provisions in Appendix 
G relating to the generation of a baseline or the Energy Cost Budgeting 
Approach are irrelevant to today's rule.
    As stated in the NOPR, the Performance Rating Method in Appendix G 
of ASHRAE 90.1 and the IECC Simulated Performance Alternative are 
already prescribed at 10 CFR parts 433 and 435 for determining whether 
covered new Federal buildings meet the required energy efficiency 
standards in those sections. In addition, whole building simulations 
are already performed today for most medium- and large-sized buildings 
to accurately estimate loads for purposes of sizing HVAC equipment and 
to evaluate buildings under voluntary advanced building programs. Based 
on this and the comments received, DOE is not changing this approach in 
today's rule.
    On August 10, 2011, DOE published a final rule updating Federal 
energy efficiency baseline standards in 10 CFR part 435 for low-rise 
residential buildings to the 2009 IECC. 76 FR 49279. On July 19, 2013, 
DOE published a final rule updating the Federal energy efficiency 
baseline standard in 10 CFR part 433 for commercial and multi-family 
high-rise buildings to ASHRAE Standard 90.1-2010. 78 FR 40945. DOE also 
acknowledges the need to improve work with the energy modeling industry 
to standardize assumptions and certify programs and users, but such 
collaboration is outside the scope of this rule. DOE and ENERGY STAR, 
drawing upon their experience with EnergyPlus Software and Target 
Finder, respectively, are participating with the Commercial Energy 
Services Network (COMNET, www.comnet.org) to develop energy performance 
modeling guidelines and procedures.
    DOE recognizes that the whole building approach likely is not 
appropriate for major renovations that are limited to system or 
component level retrofits. As noted previously, for major renovations 
that are less than whole building renovations (i.e., system or 
component level retrofits) DOE is proposing establishing the maximum 
allowable fossil fuel consumption in fiscal years 2013 through 2029 
based on the percentage of whole building consumption represented by 
retrofitted system or component. The applicable table value would be 
multiplied by this percentage value to arrive at the maximum allowable 
fossil fuel consumption of the retrofitted system or component. For 
determining compliance, DOE is proposing basing the subject fossil 
fuel-generated energy consumption on the system or component as 
retrofitted. This would require the design engineer to estimate the 
energy consumption of the systems or components as renovated.
2. Off-Site and On-Site Renewable Energy and Renewable Energy 
Certificates
    The NOPR stated that in order to meet the fossil fuel-generated 
energy consumption reduction requirements mandated by ECPA, fossil 
fuel-generated energy consumption could be offset with the use of 
renewable energy. 75 FR 63410. DOE also recognized that there may be 
physical limitations to the amount of on-site renewable electricity 
that can be produced, and it may be more affordable for an agency to 
purchase electricity from centralized renewable energy-generation 
facilities. DOE was concerned, however, that the purchase of renewable 
energy-generated electricity via Renewable Energy Certificates or 
direct Power Purchase Agreements (PPAs) may simply reduce the amount of 
renewable energy available for purchase by other entities within the 
U.S. and may not necessarily lead to an overall decrease in domestic 
fossil fuel-generated energy consumption. In addition, DOE was 
concerned that the purchase of Renewable Energy Certificates does not 
involve a long-term binding agreement and can readily be cancelled. DOE 
indicated in the NOPR that it was leaning toward allowing direct PPAs 
with a long-term contract to count toward meeting the fossil fuel-
generated energy consumption reduction requirements, but not allowing 
Renewable Energy Certificates. 75 FR 63410.
    Numerous comments were submitted about Renewable Energy 
Certificates and PPAs. The Renewable Energy Markets Association (REMA) 
supported the use of Renewable Energy Certificates and stated that as 
demand outstrips supply, more renewable energy generation will be 
built. (REMA, No. 20 at pp. 1-2) REMA also indicated that the purchase 
of Renewable Energy Certificates is allowed to meet other Federal 
requirements, and commented that PPAs should be allowed only if the 
renewable energy attributes (the associated Renewable Energy 
Certificates) are purchased by the agency as well. (REMA, No. 20 at pp. 
1-2)
    NAD and NREC encouraged the use of Renewable Energy Certificates to 
stimulate demand for renewable energy generation. (NAD, No. 19 at p. 2; 
NREC, No. 28 at p. 2) EEI recommended use of both Renewable Energy 
Certificates and PPAs with a minimum contract term. (EEI, No. 10 at p. 
8) The National Nuclear Security Administration (NNSA) commented that 
Renewable Energy Certificates should be allowed if the renewable energy 
was generated on Federal property or, from any source, if the contract 
is for a period of five years or greater. (NNSA, No. 9 at p. 1) DHHS-
IHS-OEHE was concerned that unless the availability of renewable energy 
sources from the grid is allowed and expanded, these fossil fuel 
reduction goals will not be met, and therefore supported the use of 
Renewable Energy Certificates and PPAs. (DHHS, No. 24 at pp. 5-6)
    GSA expressed concern about the requirement for long-term 
contracts, and indicated that GSA cannot procure renewable energy under 
PPAs in a manner that would make them economical due to their 10 year 
utility contracting authority under Federal Acquisition Regulation Part 
41. (GSA, No. 26 at p. 2) NIBS strongly discouraged the utilization of 
PPAs or Renewable Energy Certificates as a mechanism for meeting such 
requirements, stating that it would hamper interest in energy efficient 
design. (NIBS, No. 12 at p. 3)
    AGA opposed the use of Renewable Energy Certificates and PPAs, 
stating there is no guarantee that they will contribute to fossil fuel 
reductions. (AGA, No. 16 at p. 5) AGA was also concerned that, because 
the statute does

[[Page 61710]]

not address efficient use of energy in Federal buildings, the rule 
encourages potentially wasteful use of renewables and nuclear-generated 
electric energy. (AGA, No. 16 at p. 1) AGA and GTI commented that, if 
PPAs are allowed, the rule should also allow the purchase of natural 
gas from renewable sources as well, such as biomethane, biopropane, 
biofuel oil and biomass. (AGA, No. 16 at p. 5; GTI, No. 22 at p. 14) 
APGA commented that DOE should not allow contracts to deliver off-site 
renewable energy to count towards on-site fossil fueled energy 
reductions because such contracts cannot insure that only non-fossil-
fueled electrons are delivered to Federal facilities. (APGA, No. 17 at 
p. 6)
    In addition to Renewable Energy Certificates and PPAs, DOE received 
several comments from DOD about allowing agencies to use an agency 
portfolio approach for renewable electricity produced off-site by the 
agency. These commenters stated that they encourage investment in 
renewable energy where it is most cost-effective, which is often across 
a portfolio rather than on a building-by-building basis. (DOD-OUSOD, 
No. 25A at p. 1; DOD-N, No. 25B at p. 1; DOD-AF, No. 25C at p. 4)
    DOE proposes to permit a deduction, subject to limitation, for 
``on-site renewable electricity generation'' and for ``off-site 
renewable electricity generation'' (e.g., Renewable Energy 
Certificates, agency portfolio renewable energy production and off-site 
PPAs).
    Today's proposal specifies that ``on-site renewable electricity 
generation'' is the amount of electricity to be consumed by the subject 
building that is contributed by renewable electricity generated at the 
Federal site or facility on which the subject building will be located. 
Thermal energy produced from a renewable energy source reduces a 
building's load and would be treated the same as energy efficiency for 
purposes of this rule. Federal agencies that choose to use on-site 
renewable electricity generation would not be permitted to transfer the 
environmental attributes of the on-site generation. In other words, 
agencies would not be permitted to convey the REC associated with the 
on-site project to an off-site project.
    In the proposed regulation Federal agencies are given credit for 
on-site renewable energy via the renewable energy and CHP electricity 
deduction in the calculation for the fossil fuel-generated energy 
consumption of a proposed design. On-site renewable energy would be 
subtracted from the proposed design's annual site electrical 
consumption. The building designer typically uses site electrical 
energy consumption when calculating the building's fossil fuel-
generated energy consumption. Deducting renewable energy generation 
from the proposed design's site electricity consumption before 
adjusting the electricity consumption for the electricity source energy 
factor and the fossil fuel generation factor would ensure that 
renewable energy generation is given appropriate credit for reducing 
fossil fuel-generated energy consumption. Biomethane, biopropane, 
biofuel oil, and biomass used on-site, to the extent they can be 
identified and accounted for, would not be included in direct fossil 
fuel energy consumption and would qualify as a renewable energy 
deduction if used to generate electricity.
    DOE understands agencies' interest in allowing the use of off-site 
renewable energy resources, including environmental attributes 
represented by Renewable Energy Certificates, to help meet the 
requirements. It may be difficult to achieve the required fossil fuel 
reductions without use of renewable resources, and on-site renewable 
resources may not be feasible or available in many cases. Thus, use of 
off-site renewable electricity resources and/or Renewable Energy 
Certificates, may be necessary. In addition, with off-site renewable 
resources, agencies may be better able to optimize production or reduce 
costs because of resource availability, economies of scale, and other 
factors.
    While DOE acknowledges the benefits of off-site renewable energy, 
DOE has some concerns with allowing the use of off-site renewable 
energy, including Renewable Energy Certificates, without limitation. 
DOE is concerned that energy representing a Renewable Energy 
Certificate that is not under substantial control of the Federal agency 
claiming the REC because ECPA, as amended, requires that each Federal 
agency meet the reduction requirements for each of its Federal 
buildings. DOE is also concerned about RECs being not properly tracked 
and accounted for, and that a REC may not represent new or additional 
capacity. Additional administrative and accounting complexity could 
detract from agency compliance.
    Therefore, under this SNOPR, agencies would be required to ensure 
that any renewable energy resources used to meet the rule represent new 
capacity and are not drawn from existing resources, and the renewable 
energy generation could not be used to offset the fossil fuel-generated 
energy consumption of more than one design. DOE believes that requiring 
off-site generation to represent new capacity would be consistent with 
the statutory goal of reducing total fossil fuel consumption.
    DOE acknowledges that increased demand for Renewable Energy 
Certificates, whether from the Federal sector or elsewhere, will send a 
market signal to develop more renewable resources rather than reduce 
the amount of Renewable Energy Certificates available for other 
entities. DOE also recognizes that many commenters support the use of 
Renewable Energy Certificates as a compliance path for this SNOPR.
    To receive credit against the reduction targets under any of the 
above scenarios, an agency would be required to ensure that the 
renewable energy environmental attributes are dedicated to meeting the 
fossil fuel reduction requirements of the subject new or renovated 
building and not used elsewhere. The renewable energy environmental 
attributes would need to be retained by the agency. Environmental 
attributes represent the general environmental benefits of renewable 
generation such as air pollution avoidance (e.g., sulfur dioxide, 
nitrogen oxide, methane, carbon dioxide). The exact quantity of the 
environmental benefit (e.g. pounds of emission reductions of a given 
pollutant) is not indicated by an environmental attribute, though it 
can be quantified separately through engineering estimates. The 
environmental attribute represents all environmental benefits provided 
by renewable energy generation.
    DOE recognizes that the December 5, 2013 ``Presidential 
Memorandum--Federal Leadership on Energy Management'' (``Presidential 
Memorandum) prioritizes Federal agency renewable energy sources for 
purposes of meeting the renewable energy consumption goals in the 
Presidential Memorandum. Federal agencies should consider the 
prioritization in the Presidential Memorandum when determining how they 
would comply with this proposed rule.
    DOE requests additional comment on the issues related to the use of 
off-site renewable energy generation, including Renewable Energy 
Certificates, in complying with the proposed rule. Specifically, DOE is 
also concerned about, and requests comment on, how the current state of 
information and markets would allow Federal agencies to reliably trace 
a Renewable Energy Certificate to an actual reduction in fossil fuel 
use.

[[Page 61711]]

3. Use of Source Energy
    The NOPR stated that CBECS and RECS data does not provide data on 
total fossil fuel-generated energy consumption in buildings; however, 
fossil fuel-generated energy consumption can be calculated from CBECS 
and RECS data by using the following equation:

Fossil fuel-generated energy consumption = Direct consumption of fossil 
fuels in the building plus the amount of electrical energy consumption 
that is generated from fossil fuels. 75 FR 63407.

    In order to determine the amount of electricity consumed in the 
building that is generated from fossil fuels, it is necessary to 
convert site electricity to source energy. Source energy is the total 
amount of energy used at the site, including the energy used to 
generate and deliver electricity to the site. Site electricity is 
converted to source energy by multiplying site electricity by the 
electricity source energy factor. For purposes of today's rule, source 
energy is further adjusted to account for the portion of electricity 
generated from fossil fuels by multiplying source energy times the 
fossil fuel generation factor and adding direct consumption of fossil 
fuels in the building. DOE did not ask for comment on this issue except 
as to whether the calculation could be effectively used for on-site 
combined heat and power systems (discussed later). Nonetheless, DOE 
received several comments concerning the use of source energy rather 
than site energy.
    NREC commented that site energy, which can be easily measured and 
verified, is the only correct method that can be used. (NREC, No. 28 at 
pp. 1-2) EEI stated that the use of source energy contradicts the 2007 
final rule on energy efficiency performance standards for new Federal 
buildings, and urged DOE to use site energy. (EEI, No. 10 at p. 2) EEI 
stated that the use of source energy contradicts the conclusion of 
ASHRAE's Technology Council Ad Hoc Committee on Energy Targets, where 
ASHRAE, the American Institute of Architects (AIA), the U.S. Green 
Building Council (USGBC), and the Illuminating Engineering Society of 
North America (IESNA) agreed to use site energy as the metric for net-
zero energy buildings. (EEI, No. 10 at pp. 4-5) EEI also claimed that 
the use of source energy will make the reduction targets unattainable. 
(EEI, No. 10 at p. 7) Finally, EEI argued that site energy metrics 
would eliminate any game playing or distorted results from the use of 
on-site renewable energy or CHP systems. (EEI, No. 10 at p. 6)
    AGA commented in support of DOE's proposed use of source energy. 
Source energy, AGA stated, is essential to calculating fossil fuel use 
in both direct primary energy use and electric generation, and is 
consistent with the recommendations of the National Research Council on 
energy efficiency standards and measurement approaches, EPA's ENERGY 
STAR for Commercial Buildings, and national consensus standards such as 
the Green Buildings Initiative, ANSI standard and proposed IgCC Version 
2.0 model code. (AGA, No. 16 at pp. 2-3) AGA recommended, for clarity, 
that the regulatory definitions include ``source'' energy. (AGA, No. 16 
at p. 4)
    GTI supported the use of source energy. They commented that site 
energy incentivizes lower first cost technologies and inadvertently 
promotes fuel switching away from more full-fuel-cycle energy efficient 
and lower greenhouse gas-emitting technologies. (GTI, No. 22 at pp. 5, 
14) GTI also commented that the proposed DOE definition of primary 
energy only considers the energy required to convert fuels to 
electricity at the power plant, not the fossil fuel energy consumption 
associated with extraction, processing, transportation, or distribution 
of fuels used directly in buildings. (GTI, No. 22 at p. 2) GTI, APGA, 
and NPGA commented that DOE's proposed source energy metrics should be 
replaced with full-fuel-cycle information as DOE has decided to use in 
certain analyses the Department conducts when setting energy 
conservation standards for consumer products and commercial equipment. 
(see Docket No. EERE-2010-BT-NOA-0028, RIN 1904-AC24, Statement of 
Policy for Adopting Full-Fuel-Cycle Analyses into Energy Conservation 
Standards Program.) (GTI, No. 22 at p. 15; APGA, No. 17 at p. 3; NPGA, 
No. 23 at p. 3) GTI offered DOE's Greenhouse Gases, Regulated 
Emissions, and Energy Use in Transportation (GREET) model as the 
primary energy to full-fuel-cycle conversion factor methodology, and 
its Source Energy and Emissions Analysis Tool (SEEAT) as its underlying 
methodology for consideration. (GTI, No. 22 at pp. 5-6)
    DOE continues to believe that source energy is the correct metric 
to use for this rulemaking, for reasons cited in the NOPR and discussed 
at the beginning of this section. Because this rule relates to fossil 
fuel reductions specifically (rather than energy reductions generally) 
and not all electricity is produced from fossil fuels, it was necessary 
to go beyond site energy and look at source energy to accurately 
quantify fossil fuel consumption for electricity. For this reason, DOE 
adjusted site energy from electricity by the percentage of electricity 
produced from fossil fuels (fossil fuel generation factor) and the fuel 
conversion, transmission, and distribution losses (electricity source 
energy factor) to determine the fossil fuel-generated energy 
consumption from electricity. The use of source energy is consistent 
with the approach EPA uses for ENERGY STAR Portfolio Manager. EPA has 
determined that source energy is the most equitable unit of evaluation 
for fossil fuels.\1\ Source energy forms the basis for the maximum 
allowable fossil fuel-generated consumption reductions in Tables 1-4 in 
Appendix A.
---------------------------------------------------------------------------

    \1\ U.S. Environmental Protection Agency. ENERGY STAR 
Performance Ratings Methodology for Incorporating Source Energy Use. 
March, 2011.
---------------------------------------------------------------------------

    Regarding EEI's concern that source energy would distort the 
results or cause game-playing with on-site renewable energy or CHP, 
this SNOPR gives on-site renewable energy generation the same benefit 
as improved energy efficiency. Under either scenario, the non-fossil 
fuel generation does not count toward the proposed design site 
electricity consumption. Similarly, any electricity produced by a CHP 
does not count toward the proposed design site electricity consumption. 
Regarding EEI's contention that source energy will make the reductions 
unattainable, DOE notes that if the reductions are not attainable via 
energy efficiency alone, Federal agencies may choose to use a renewable 
energy deduction.
    DOE appreciates the comments from GTI and others about using a 
full-fuel-cycle approach with the GREET or SEEAT models, but believes 
the methods used in this rule are appropriate to address the statutory 
requirements. The maximum allowable fossil fuel-generated energy 
consumption targets in today's rule incorporate losses back to the 
power plant and the pipeline. However, DOE does not believe it is 
necessary to go further upstream in its analysis for purposes of this 
rule. Any losses that occur further upstream than the power plant or 
pipeline would be very difficult to substantiate with precision.
4. Fuel Conversion Efficiency
    In the NOPR, DOE proposed that the electricity source energy factor 
would be based on the average utility delivery ratio in Table 6.2.4 of 
the 2010 DOE Building Energy Data Book (See https://buildingsdatabook.eere.energy.gov). 75 FR 63410. The ratio accounts for 
fuel conversion losses to produce electricity, as well as transmission 
and distribution losses. DOE used the electricity source

[[Page 61712]]

energy factor of 0.316 from the most recent year data was available, 
2008. Recent updates in the 2011 DOE Buildings Energy Databook (see 
https://buildingsdatabook.eere.energy.gov) indicate that the current 
value in most current historical value in 2010 was 0.323, with a 
predicted gradual increase to 0.340 by 2035.
    EEI commented that assuming a 33 percent conversion efficiency of 
fossil fuels to electricity will guarantee miscalculations, especially 
in areas with more renewable forms of electric generation. (EEI, No. 10 
at p. 3) For example, the conversion efficiency of natural gas 
generation built over the last 10-15 years, has a thermal efficiency in 
the 55 to 57 percent range. (EEI, No. 7 Public Meeting Transcript, at 
p. 29; EEI, No. 10 at p. 3) AGA commented that DOE should not impose 
barriers to use of end-use fuel choice as a means of achieving target 
reductions. (AGA, No. 16 at p. 3) APGA and GTI commented that since 
generation efficiency and fuel mix will not materially change between 
now and 2030, it will be critical to reduce purchased electricity 
consumption significantly to help achieve required targets. (APGA, No. 
17 at p. 4; GTI, No. 22 at p. 2)
    APGA commented that the proposed definition of primary energy is 
incomplete in that it only considers the energy required to convert 
fuels to electricity at the power plant, not primary energy resources 
necessary to obtain and transport the fuel to the power plant nor 
fossil fuel energy consumption associated with extraction, processing, 
transportation, or distribution of fuels used directly in buildings. 
(APGA, No. 17 at p. 3) APGA also commented that renewable generation 
requires fossil fueled backup, which will frustrate the 100 percent 
elimination of fossil fuel-generated energy consumption. (APGA, No. 17 
at p. 6) DOD-N commented that the thermal efficiency factor has been 
omitted from the proposed calculation. (DOD-N, No. 25B at p. 3) IDEA 
commented that the definition of electricity source energy factor 
appears to be incorrect and should refer to ``primary fuel'' rather 
than ``primary electrical energy.'' (IDEA, No. 21 at p. 2)
    First, DOE notes that thermal efficiency is embedded as part of 
electricity source energy factor, as well as the other fuel source 
energy multiplier. Further, DOE does not share the concern that the use 
of fossil fuels for backup power by a utility when intermittent 
renewable energy is not available will frustrate the 2030 goal of 100 
percent reduction in the use of fossil fuel-generated energy. 
Compliance with the requirements leading up to 2030 (i.e., 55 percent 
in FY 2010-2014, 65 percent in FY 2015-2019, 80 percent in FY 2020-
2024, and 90 percent in FY 2025-2029) is determined on an annual basis, 
and DOE believes it is reasonable to continue to apply that approach to 
the 100 percent reduction requirement after 2030. Even though fossil 
fuels may be used by a utility as backup power during certain times of 
the day or year when a renewable resource is not available, surplus 
renewable energy provided at other times will offset fossil fuel 
consumption for use elsewhere.
    In the NOPR, ``primary electrical energy use'' was a term used only 
in the definitions of ``electricity source energy factor'' and ``fossil 
fuel consumption for electricity generation.'' The latter term is not 
included in the today's rule, and the definition of ``electricity 
source energy factor'' has been modified and no longer refers to 
``primary electrical energy use,'' eliminating the need to redefine the 
term.
    The definition of ``electricity source energy factor'' has been 
simplified in this proposed rule. Electricity source energy factor is 
defined as the multiplier used to account for fuel conversion losses 
and transmission and distribution losses associated with electricity 
generated from fossil fuels. For this proposed rule, the factor to be 
used is 0.316. This represents the average efficiency of fossil fuel 
generation in 2008 as described in the NOPR. The electricity source 
energy factor was used to help convert CBECS and RECS site energy data 
to source energy in Tables 1-4 of Appendix A as described in the 
preamble section on source energy.
    EEI argued that it is inconsistent to use estimates for going 
``upstream'' for electricity but not for direct use of fossil fuels. 
(EEI, No. 10 at p. 6) DOE has added an ``other fuels source energy 
multiplier'' to the equation for various fuels other than electricity 
to determine the fossil fuel-generated energy consumption of the 
proposed building. These multipliers were used by ORNL when converting 
the CBECS site energy use data to source-based fossil fuel generated 
energy consumption, so the multipliers also need to be included in the 
calculation for the proposed building. The multipliers account for 
distribution and other losses that occur between the time the fuel 
provider takes delivery and final delivery to the building site as 
measured at the meter, and provides consistency with the adjustment for 
electricity. The ``other fuels source energy multipliers'' do not 
include well-head, mine-mouth, or bulk fuel transportation losses.
5. On-Site Energy Generation From Natural Gas
    The NOPR indicated DOE's interest in the effect of the fossil fuel-
generated energy consumption reduction requirements on distributed 
energy technologies that provide onsite electrical generation from 
natural gas, such as combined heat and power (CHP) systems to generate 
both heat and electricity. A building with a CHP system could 
potentially be an all-gas building in terms of utility purchases and 
would, therefore, be required to reduce natural gas consumption in 
accordance with the fossil fuel-generated energy consumption reduction 
requirements. DOE indicated its interest in minimizing the penalty or 
not discourage the use of on-site CHP systems, within the limits of the 
statutory language. DOE invited comments on how appropriate credit may 
be given for CHP systems through the compliance determination 
methodology. 75 FR 63410.
    DOE received several comments related to distributed energy 
technologies. IDEA commented that district heating systems may use a 
mix of fossil fuels and renewable fuels and may also supply electricity 
to the power grid using combined heat and power (CHP), and that the 
rule does not accurately capture the efficiency of district energy. 
(IDEA, No. 21 at p. 2) EEI disagreed that on-site CHP has inherent 
efficiencies compared to purchased electricity; CHP can be very 
efficient, but it is not always more efficient than combined-cycle 
generation. (EEI, Public Meeting Transcript, No. 7 at pp. 53-54) EEI 
also commented that one of the issues is the on-site production of 
energy, whether it is electric energy, thermal energy or fossil fuel 
energy. (EEI, Public Meeting Transcript, No. 7 at p. 51) On a related 
issue pertaining to on-site generation more broadly, EEI commented that 
the use of on-site renewable energy does not change the energy 
efficiency of the building, it only moves the source of energy closer 
to the building. (EEI, No. 10 at p. 5)
    NIBS commented that the logic behind singling out CHP systems seems 
flawed because their efficiency is already accounted for. (NIBS, No. 12 
at p. 3) AGA commented that the direct use of natural gas in Federal 
buildings should be preserved as an option where installation of 
natural gas applications would both reduce fossil fuel-generated energy 
consumption and increase energy efficiency. (AGA, No. 16 at p. 2) NAD 
commented that fuel cells can operate on natural gas until hydrogen

[[Page 61713]]

fuel storage becomes feasible, and suggested they should be addressed 
like CHP systems. (NAD, No. 19 at p. 3) AGA also commented that the 
calculation methodology correctly provides credit for the installation 
of on-site combined heat and power (CHP) systems, and suggested that 
DOE should promote these technologies within Federal buildings within 
the timeframes for which fossil fuel use is still permitted (i.e., 
before FY 2030). (AGA, No. 16 at p. 5)
    DHHS-IHS-OEHE supported not penalizing or discouraging the use of 
on-site sources. (DHHS, No. 24 at p. 5) DOD-N commented that 
distributed electrical power produced on-site should be credited with 
fossil fuel use avoidance for electricity sold into the grid. (DOD-N, 
No. 25B at p. 5) IDEA recommended the addition of eight definitions and 
amendment of the definition of ``Proposed Design Fossil Fuel-Generated 
Energy Consumption'' and the definition of ``Direct Fossil Fuel 
Consumption.'' (IDEA, No. 21 at pp. 3-4)
    Based on the comments received and a technical review of the issues 
raised, DOE proposes specificity on how CHP and district heating 
systems should be considered. DOE believes that this specificity adds 
clarity and addresses the comments submitted. Under DOE's proposal for 
district heating or cooling systems using fossil fuel as the source, 
the fossil fuel-generated energy consumption would be determined by 
adjusting the building load for the plant fuel conversion efficiency 
and estimated distribution losses as reflected in the ``Other Fuels 
Energy Source Multiplier.'' If a non-fossil fuel is used as the sole 
source (e.g., geothermal) of energy for the district heating system, 
there would be no contribution to fossil fuel-generated energy 
consumption.
    For CHP district heating systems, the electricity attributed to the 
proposed building would be determined by multiplying the building's 
pro-rated share of the total delivered heat from the system times the 
total electricity produced by the CHP system. For CHP systems serving 
only one building, fossil fuel consumption of the CHP system would be 
added to the direct fossil fuel consumption in Equation 1. Because it 
is produced from waste heat, the amount of electricity produced by 
either the CHP system serving a single building or a CHP district 
heating system, as determined above, would be deducted from the 
proposed design site electricity in Equation 1 under the renewable 
energy and CHP deduction.
6. Additional Review
    Because of the complexity of some of the issues presented in the 
NOPR, two comments were submitted requesting an additional opportunity 
to review the rule before it is finalized, especially regarding the 
issues of climate zones and regional considerations. (NPGA, No. 23 at 
p. 5; DHHS, No. 24 at p. 1) This SNOPR provides an opportunity for 
additional comment on the proposed rulemaking, including the issues of 
climate zones and regional considerations.
7. Other
    DOE received a few additional comments relating to methodology that 
did not fit into one of the categories above. AGA and APGA asked DOE 
not to achieve reductions by encouraging Federal agencies to only use 
electricity supplied by nuclear energy rather than renewable energy. 
(AGA, No. 16 at p. 2; APGA, No. 17 at p. 6) The American Wood Council 
(AWC) commented that DOE should reference not only LEED as a tool for 
energy reductions, but also Green Globes and the National Association 
of Home Builders (NAHB) Standard. (AWC, No. 18 at p. 2) DOE notes that 
all nuclear power is produced by regulated utilities and there is no 
mechanism for utility customers to get credit for nuclear-generated 
electricity under today's rule. There is currently no way for a non-
utility to purchase nuclear-generated electric power as there is for 
electricity produced from renewable energy sources under arrangements 
like PPAs or RECs. However, DOE does recognize that on-site deployment 
of small modular reactors (SMRs) may be possible in the future and that 
some agencies may be in a position to rely on SMRs for energy. DOE 
requests comment on how the potential future use of on-site SMRs could 
be addressed in the final rule.
    DOE acknowledges that, to the extent LEED is referenced as a 
possible resource for fossil fuel reductions, it should have also 
referenced other green building rating systems (GBRS) such as Green 
Globes and the NAHB Green Standard. Although DOE has added these GBRS 
in the Reference Resources section below, DOE notes that these systems 
do not provide specific guidance that could help designers achieve the 
level of reductions called for in today's rule.

E. Petitions for Downward Adjustment

    Upon petition by an agency subject to the statutory requirements, 
ECPA permits DOE to adjust the applicable numeric fossil fuel-generated 
energy consumption percentage reduction requirement downward with 
respect to a specific building, if the head of the agency designing the 
building certifies in writing that meeting the requirement would be 
technically impracticable in light of the agency's specified functional 
needs for the building and DOE concurs with the agency's conclusion. 
(42 U.S.C. 6834(a)(3)(D)(i)(II)) ECPA further directs that such an 
adjustment does not apply to GSA. In today's rulemaking, DOE proposes a 
downward adjustment process for new construction and separate processes 
for major renovations that are whole building renovations and for major 
renovations that are limited to system or component level renovations.
1. Technical Impracticability and Cost as a Basis for Downward 
Adjustment
    The NOPR noted that the downward adjustment provision of ECPA does 
not expressly include cost considerations, but that DOE was considering 
incorporating cost considerations as part of a ``technically 
impracticable'' determination. Cost would not be the sole rationale for 
a determination of ``technically impracticable,'' but high costs could 
be part of the evaluation. 75 FR 63412. DOE invited comments on what 
kind of technical impracticability would constitute grounds for a 
petition for downward adjustment.
    DOE received several comments about allowing costs (or cost-
effectiveness) as grounds for a petition for downward adjustment. DOD-
OUSOD and DOD-AF commented that life-cycle cost-effectiveness should be 
the foundation for any finding of ``technically impracticable.'' (DOD-
OUSOD, No. 25A at p. 1; DOD-AF, No. 25C at p. 7) NIBS commented that 
any petition invoking cost as a basis for technical impracticability 
should be based solely on life-cycle costs, not first costs. (NIBS, No. 
12 at p. 4) AGA recommended that petitions should be ``technologically 
feasible and economically justified'' as the term is used in ECPA. It 
also recommended that cost-effectiveness be based on life-cycle cost-
effectiveness of the relevant energy reduction measures. (AGA, No. 16 
at p. 3)
    NRDC commented that DOE's proposal to use ``cost considerations'' 
as part of the determination of what is ``technically impracticable'' 
is contrary to what NRDC reads as EISA's plain language, and that DOE 
should not use cost impacts in any way to limit the application of the 
rule. (NRDC, No. 14 at p. 8) NRDC stated that by requiring these 
reductions in fossil fuel use regardless of costs, Congress was 
advancing a broader goal that goes beyond the reduction of fossil fuel 
use

[[Page 61714]]

by Federal buildings, specifically that the Federal government will 
lead by example. (NRDC, No. 14 at p. 9)
    DOE understands the concern that achieving the reductions required 
by this rulemaking, especially in the out-years, could be difficult and 
expensive. DOE also appreciates the concern that allowing costs as the 
basis for a downward adjustment petition could result in many agencies 
requesting a petition simply based on cost. The statutory provision 
concerning a petition for downward adjustment states that agencies must 
demonstrate that meeting the reductions would be technically 
impracticable ``in light of the agency's specified functional needs for 
the building,'' and does not mention cost. As a result, DOE does not 
believe that cost itself could be grounds for a downward adjustment. 
However, DOE believes that it would be appropriate and permissible to 
consider a petition for downward adjustment based on the impact to an 
agency's functional needs for the building of achieving the fossil 
fuel-generated energy consumption reductions. DOE recognizes that an 
agency's functional needs for a building may be inextricably linked 
with costs, but cost should not be the primary basis for a petition for 
downward adjustment.
2. Bundling of Petitions
    The bundling of petitions was not an issue addressed in the NOPR. 
However, three comments were submitted on whether an agency could 
submit a single petition for downward adjustment for multiple agency 
buildings of the same building type, rather than requiring a petition 
for each building separately, to minimize agency burden. (DOD-AF, No. 
25C at p. 8; DOD-OUSOD, No. 25A at p. 1; DHHS, No. 24 at p. 6)
    DOE agrees that ``bundling'' of petitions by an agency for 
buildings of the same building type and function would help streamline 
the petitioning process and relieve the burden on agencies and DOE by 
avoiding duplication of effort. Although DOE would require an 
individual petition containing the information required under this 
proposed rule for each building, if the petitions for similar buildings 
are submitted jointly, a petition may reference the downward adjustment 
justification in another petition in the bundle. DOE is considering 
allowing agencies to bundle petitions for new buildings or whole 
renovations to buildings: (1) That are of the same building type and of 
similar size; (2) that are being designed and constructed to the same 
set of targets for fossil fuel-generated energy consumption reduction; 
or (3) that would require similar measures to reduce fossil fuel-
generated energy consumption and similar adjustment to the numeric 
reduction requirement. The bundled petitions should clearly state any 
differences between the buildings, and explain why the differences do 
not warrant the submission of separate evaluations. If an agency is 
designing a similar building for a different set of targets for fossil 
fuel-based energy consumption reduction that meets conditions (1) and 
(3) above, the agency would be required to submit a separate petition, 
but may include the evaluation for the previous building(s) as well as 
an explanation why that earlier evaluation should apply to the new 
building(s).
    For component-level major renovations, DOE is considering allowing 
bundling petitions that are of the same component and building type. 
DOE is accepting comment on the most efficient yet effective ways to 
bundle petitions.
3. DOE Review Process
    The NOPR stated that DOE will review petitions in a timely manner 
and if the petitioning agency has successfully demonstrated the need 
for a downward adjustment per the discussion above, DOE would concur 
with the agency's conclusion and notify the agency in writing. If DOE 
does not concur, it would forward its reasons to the petitioning agency 
with suggestions as to how the fossil fuel-generated energy consumption 
percentage reduction requirement may be achieved. 75 FR 63412.
    Several comments were submitted about the DOE review process. EEI, 
ICC, DOD-OUSOD, and DOD-N requested information on how quickly the 
Secretary of Energy has to render a decision on a petition, and 
requested a timeline. (EEI, Public Meeting Transcript, No. 7 at p. 61; 
ICC, No. 11 at p. 3; DOD-OUSOD, No. 25A at p.1; DOD-N, No. 25B at p. 7) 
NRDC and DOD-OUSOD commented that DOE should establish procedures for 
reviewing and ruling on petitions for adjustments to ensure public 
transparency. (NRDC, No. 14 at p. 7; DOD-OUSOD, No. 25A at p. 1) DOD-N 
recommended that the rule should include where and how to submit 
petitions. (DOD-N, No. 25B at p. 7)
    DOE recognizes that agencies want assurance that DOE will respond 
to petitions in a timely manner to avoid project delays. For petitions 
for new construction, DOE proposes to notify an agency in writing 
within 90 days of submittal whether a petition for downward adjustment 
is approved or rejected. If DOE rejects the petition, it would include 
its reasons for doing so in its response to the agency. Additionally 
for new construction, DOE proposes a provision under which DOE could 
establish an adjusted value other than the one presented in a petition 
if DOE finds that the petition does not support the conclusion of the 
submitting agency but that the statutorily required level was 
nonetheless technically impractical in light of the agency's specific 
functional needs for the building. This provision is intended to 
provide flexibility in the petition process and reduce the need for 
agencies to resubmit in the instance of a rejection. Under the statute, 
the Secretary of Energy is tasked with deciding whether to grant a 
petition for downward adjustment and DOE believes that this authority 
also grants DOE the ability to propose alternative adjusted values if 
appropriate.
    For petitions for downward adjustments to the requirements 
applicable to major renovations, DOE proposes that the downward 
adjustment would be granted upon submission of specified 
certifications. The necessary certifications are discussed in greater 
detail further in this document.
4. Information Required in Petitions for New Construction
    The NOPR proposed that a petition for downward adjustment of the 
numeric requirement should include an explanation of what measures 
would be required to meet the fossil fuel-generated energy consumption 
reduction requirement, and why those measures would be technically 
impracticable in light of the agency's specified functional needs for 
the building. DOE also proposed that the petition should demonstrate 
that the adjustment requested by the agency represents the largest 
feasible reduction in fossil fuel-generated energy consumption that can 
reasonably be achieved. DOE solicited comments on those issues. 75 FR 
63412.
    Several comments specifically asked what kind of information would 
be required for a petition. DOD-N recommended that DOE provide guidance 
regarding expected content of petitions and the minimum supporting 
information required for review and approval. (DOD-N, No. 25B at p. 7) 
NRDC recommended that DOE require that the agency provide in its 
petition any relevant information that is needed to understand and 
verify the agency's conclusion and request, including information about 
the building's specified functional needs. (NRDC, No. 14 at p. 12) NRDC 
thought the

[[Page 61715]]

requirement that a petition demonstrate that the requested adjustment 
is the largest feasible reduction in fossil fuel-generated consumption 
that can be achieved represents a positive step. (NRDC, No. 14 at p. 8) 
NIBS suggested that the petitions include a description of all 
reasonable technologies and practices that were examined and ultimately 
rejected by the design team. (NIBS, No. 12 at p. 4)
    DOE agrees with these comments and is proposing provisions intended 
to provide more detailed petition requirements that would allow the 
Department to determine more comprehensively whether a downward 
adjustment would be allowable. DOE proposes a modified provision to 
require a demonstration that the requested adjustment represents the 
largest feasible fossil fuel reduction that can reasonably be achieved 
to include a demonstration that all life-cycle cost-effective energy 
efficiency and on-site renewable energy measures were included in the 
design and a description of the technologies and practices that were 
evaluated and rejected, including a justification why they were not 
included. Finally, agencies would also be permitted to provide 
additional information they think will help justify the request for 
downward adjustment.
    Petitions would also be required to include the maximum allowable 
fossil fuel-generated energy consumption for the proposed building, the 
estimated fossil fuel-generated energy consumption of the proposed 
building, and a description of the building and the building energy 
systems. A description of the building would include, but would not be 
limited to, location, use type, floor area, stories, and functional 
needs of the building, and any other information the agency deems 
pertinent. The building energy systems to be described would include 
the building envelope, HVAC systems, lighting systems, service water 
heating system, and estimated receptacle and plug loads. This 
information should provide DOE the necessary information to review 
petitions, and help agencies ensure key questions and options are 
addressed in the design process.
5. Downward Adjustments for Major Renovations
    As noted previously, for major renovations DOE proposes that the 
fossil fuel reduction requirements apply only to the energy use 
associated with the portions of the building or building systems that 
are being renovated and only to the extent that the scope of the 
renovation provides an opportunity for compliance with the applicable 
fossil fuel-generated energy consumption reduction requirements. DOE 
recognizes that the improved efficiencies that can be achieved through 
renovation may not provide sufficient reduction of fossil fuel-
generated energy use for a major renovation to meet the interim 
requirements. Renovations are even less likely to achieve a 100 
percent-reduction, even in the limited context of the energy use 
associated with just the renovated system or component. As such, DOE 
expects that to the extent that renovations would be subject to the 
requirements, agencies would need to apply for downward adjustments.
    The SNOPR differs from the NOPR by establishing a separate section 
and separate requirements for downward adjustments for major 
renovations, and further delineates between major renovations that are 
whole building renovations and major renovations that are limited to 
system or component level retrofits (e.g., a lighting retrofit, a 
retrofit of a boiler or chiller). Whole building retrofits provide a 
greater opportunity for improved energy efficiency as compared to a 
system or component level retrofit, but generally neither type of 
retrofit would likely provide an opportunity to meet the fossil fuel 
reduction requirements. Recognizing the practical limitations on 
improving energy efficiency through retrofits, DOE proposes separate 
downward adjustment processes for major renovations. For major 
renovations that are whole building renovations, a downward adjustment 
would be provided at a level equal to the energy efficiency level that 
would be achieved were the proposed building designed to meet the 
energy efficiency standard applicable to new construction. As directed 
by ECPA, this downward adjustment would not apply to GSA, although DOE 
proposes that this adjustment would be available to GSA-tenant agencies 
with significant control over building design.
    The energy efficiency standards for new construction are 
established in 10 CFR part 433, for commercial and multi-family high-
rise residential buildings, and 10 CFR part 435, for low-rise 
residential buildings. The energy efficiency standards require a 
building be designed to achieve the energy efficiency levels of the 
applicable referenced voluntary consensus code: ASHRAE 90.1 for 
commercial buildings multi-family high-rise residential buildings, and 
IECC for low-rise residential buildings. The energy efficiency 
standards for new Federal buildings further require that buildings be 
designed to achieve energy efficiency levels that are at least 30 
percent beyond the levels established in the referenced codes, if life-
cycle cost-effective. As proposed, a building undergoing a whole 
building renovation would need to be designed to achieve the energy 
efficiency levels currently applicable only to new construction. DOE 
has preliminarily determined that achieving the specified level of 
energy efficiency for a major retrofit that is a whole building 
retrofit would represent the appropriate level of fossil fuel-generated 
energy reduction for the building efficiency that is also technically 
practicable.
    For major renovations that are limited to system or component level 
retrofits, DOE proposes to provide downward adjustments at a level 
equal to the energy efficiency level that would be achieved through the 
use of commercially available systems and/or components that provide a 
level of energy efficiency that is life-cycle cost effective. The 
energy efficiency requirement for system and component level 
renovations could be demonstrated by using the higher efficiency of the 
following, (1) ENERGY STAR or FEMP designated products, or (2) products 
that meet the energy efficiencies specified in ASHRAE 90.1 for systems 
and components in commercial buildings, or IECC for systems and 
components in residential buildings.
    In setting efficiency requirements, both FEMP and ENERGY STAR 
choose levels that are among the highest 25 percent of efficiency for a 
given product category. ENERGY STAR estimates that its program saves 
more than 200 billion kWh of electricity each year, and FEMP estimates 
that compliance with its efficiency requirements can save the 
government more than 30 trillion BTUs each year. Both programs have 
integrated life-cycle cost effectiveness into their guiding principles 
and, as such, Federal buyers can have confidence that required products 
have both good energy performance and a total cost of ownership that is 
equal to or less than products below set efficiencies. Prescriptive 
requirements of ASHRAE 90.1 and IECC demonstrate similarly high levels 
of efficiency. Together, these requirements cover more than 70 product 
types and will help ensure that the products used within Federal 
facilities are among the highest energy efficiencies available. Federal 
buildings that install and use these products will realize lower energy 
intensities compared to using non-compliant products.
    DOE requests comment on the considered approach as well as comment 
on other potential methods for

[[Page 61716]]

processing requests related to major renovations.
6. Make Information Publicly Available
    DOE received some comments that petitions for downward adjustment 
should be made publicly available on a DOE Web site. (NRDC, No. 14 at 
p. 11; Form letter, No. 29 at p. 1) This issue was not addressed in the 
NOPR. The Form Letter comments also stated that Federal agency 
compliance with today's SNOPR should be made public. (Form letter, No. 
29 at p. 1)
    Commenters stated that the reasons for making this information 
publicly available are that it would make the process transparent and 
hold agencies accountable and could reduce unsupported petitions. DOE 
appreciates the commenters concerns and supports transparency to the 
extent the Department can be transparent while also responding to 
petitions in a short timeframe so as not to delay building design and 
construction. As a result, DOE is proposing reporting petition summary 
level information in the DOE Annual Report to Congress on Federal 
Energy Management and Conservation Programs (See https://www.energy.gov/about/budget.htm).
7. Narrow the Use of Petitions
    DOE received a few comments related to narrowing the use of 
petitions for downward adjustment. NRDC commented that in developing 
the test for technical impracticability and the standards for downward 
adjustment petitions, DOE must consider the statutory context of the 
EISA 2007 provision, which demonstrates that DOE should not craft a 
broad petition procedure that swallows the larger statutory 
requirement. (NRDC, No. 14 at p. 8) The Form Letter requested that DOE 
promulgate strict requirements that ensure that agency requests for 
fossil fuel reduction adjustments will be rarely granted, so that this 
process does not prevent the law from achieving its vital goal to cut 
government buildings' greenhouse gas emissions dramatically. The Form 
Letter also urged DOE to strengthen the rule and apply it without 
exceptions and without loopholes. (Form letter, No. 29 at p. 1)
    DOE believes the changes it has proposed in this SNOPR would reduce 
the number of petitions submitted for downward adjustment and will 
improve the content of submitted petitions. DOE has expanded the number 
of building types covered in Tables 1-4 in Appendix A of part 433, and 
has a methodology for calculating the maximum allowable fossil fuel-
generated consumption values for buildings with process loads. This is 
expected to greatly reduce the number of building types without 
baselines and fossil fuel reduction targets, eliminating a significant 
potential source of petitions. In addition, in response to some of the 
public comments received, this proposed rule is more specific about 
information to be provided as part of the petition process. Agencies 
requesting a petition would be required to: (1) Demonstrate that the 
requested adjustment represents the largest feasible fossil fuel 
reduction that can be achieved; (2) demonstrate that all cost-effective 
energy efficiency and on-site renewable energy has been included in the 
proposed design; and (3) describe all technologies and practices that 
were evaluated and rejected, including a justification as to why they 
were not included in the design. The rule would require specific 
information about the energy efficiency and on-site renewable energy 
measures included in the proposed building design to enable DOE to 
evaluate the request for downward adjustment.
8. GSA Tenant Agencies
    The statute does not provide the General Services Administration 
(GSA) the option of petitioning DOE for a downward adjustment of the 
applicable percentage reduction requirement. (42 U.S.C. 
6834(a)(3)(D)(i)(II)) In the NOPR, DOE proposed that a new Federal 
building or a Federal building undergoing major renovations for which a 
Federal agency is providing substantive and significant design criteria 
may be the subject of a petition. 75 FR 63412. Under this approach, DOE 
proposed that a GSA building that is designed to meet the 
specifications provided by a tenant agency may be considered for a 
downward adjustment if a petition is submitted by the head of the 
tenant agency.
    DOE received one comment on this issue. NRDC commented that 
allowing GSA tenant agencies to petition for downward adjustments 
contradicts the statute. (NRDC, No. 14 at p. 10)
    While the statute prohibits GSA from petitioning DOE for a downward 
adjustment, it makes no reference to GSA tenant agencies. DOE is 
continuing to propose that GSA tenant agencies that have significant 
control over building design may request a petition. In such cases, it 
would be the tenant agency, not GSA, that is making the design choices 
that would allow for compliance with the rule. Allowing GSA tenant 
agencies to submit a petition for downward adjustment would provide an 
option for some buildings for which the required fossil fuel reductions 
may be technically impracticable in light of the building's functional 
needs, but for which GSA may not submit a petition.
9. Other
    DHHS-HIS-OEHE commented that consideration for what is technically 
impracticable should include remote locations that often have limited 
choices in available power utility companies. (DHHS, No. 24 at p. 6) 
DOE will consider remote locations and the availability of power 
utility companies in the petition process, but DOE also notes that the 
use of allowable, off-site renewable energy sources would help agencies 
meet their targets even in the case of remote buildings.

F. Impacts of the Rule

1. Cost Impacts
    The NOPR provided a discussion of the expected costs of meeting the 
fossil fuel-generated energy consumption reduction requirements based 
on a study that DOE commissioned by PNNL in 2008 to look at the 
incremental costs of high performance buildings, and cost calculations 
for DOE work associated with the ASHRAE Advanced Energy Design Guides. 
DOE acknowledged that cost data for high performance buildings is 
fairly rare, and many times the costs for achieving high levels of 
energy efficiency are intermingled with the costs to achieve more 
sustainable design features. 75 FR 63410. Because of the limited data, 
DOE sought comment on cost impacts, especially any construction cost 
increases for buildings that Federal agencies are in the process of 
designing or have already built.
    DOE did not receive any comments providing additional specific cost 
information. EEI noted that the PNNL 2008 report stated that the cost 
data was very limited. (EEI, No. 10 at p. 8) NIBS stated that the focus 
on first costs is misplaced and should not be considered; DOE should 
focus on the overall life-cycle-cost of the requirements. (NIBS, No. 12 
at p. 3) NRDC also stated that when analyzing cost impacts, DOE should 
look at life-cycle costs rather than increased first costs. (NRDC, No. 
14 at p. 7) NRDC commented that past experience has shown that the cost 
of efficiency improvements tends to be lower than predicted and that 
the magnitude of increases in energy efficiency will often exceed 
expectations. In another comment, NRDC stated that the statute does not 
mention costs as one of the criteria for application of this rule; 
therefore, DOE should not use cost to limit the application of the 
rule. (NRDC, No. 14 at p. 6).

[[Page 61717]]

    The AGA stated that the estimates should be based on actual quotes, 
not PNNL analyses or the ASHRAE Advanced Energy Design Guides. (AGA, 
No. 16 at p. 5) APGA states that EISA 2007 Section 433 strongly 
discourages any use of natural gas and subsidizes the growth of non 
fossil-fueled electricity generation, the vast majority of which will 
likely be produced off-site. APGA believes that, under this 
interpretation, EISA 2007 may reduce initial construction costs 
(relative to onsite generation) and massively increase life-cycle 
operating costs for utility services. (APGA, No. 17 at p. 6) NAD 
commented that the cost analysis described in the proposed rules showed 
up to an 8.7 percent cost increase for a simple building, but this will 
increase dramatically for more complex buildings, especially for 
buildings built in the later years when fossil fuel reductions near 100 
percent. (NAD, No. 19 at p. 3) The DOD-AF commented that given the 
restrictive nature of the Military Construction Program (MILCON) 
funding process, it is not clear how the Air Force can implement a 
strategy to meet this requirement within the timeline discussed and 
whether there is a budget to implement this requirement while meeting 
current and future Air Force mission needs. (DOD-AF, No. 25C at p. 6).
    DOE agrees that it is prudent to consider cost-effectiveness of 
energy reduction measures. First costs, of course, are necessary to 
compute cost-effectiveness. DOE notes, however, that per the statute, 
high first costs/poor cost-effectiveness are not an explicit 
consideration for today's rulemaking. (See 42 U.S.C. 6834(a)(3)(D)). 
Nonetheless, DOE believes that minimizing costs to Federal agencies is 
a significant consideration, and DOE has designed this proposed rule to 
minimize costs and foster the most cost-effective approaches to meeting 
the statutorily mandated fossil fuel reductions.
    The baseline Federal building energy efficiency standards published 
in the past few years require agencies to design new Federal buildings 
to achieve energy consumption levels at least 30 percent below the 
levels of the baseline building built to ASHRAE Standard 90.1-2010, or 
the IECC 2009 (depending on the type of building), if life-cycle cost-
effective. See 78 FR 40945 (July 9 2013); 76 FR 49279 (August 10, 
2011). If achieving this consumption level is not life-cycle cost-
effective, Federal agencies must, at a minimum, meet ASHRAE Standard 
90.1-2007, or the IECC 2009 (depending on the type of building). 
Federal agencies are already required to incur the costs associated 
with meeting these requirements. For new Federal buildings, it is only 
the additional first cost of achieving fossil fuel-generated 
consumption reductions beyond the energy efficiency improvements 
already required for new Federal buildings that would be attributable 
to this proposed rule. Beyond those pre-existing requirements, agencies 
have the option of implementing additional energy efficiency, on-site 
renewable energy, or acquiring off-site renewable energy in accordance 
with procedures described earlier. The rule provides agencies with some 
alternative ways to achieve the required fossil fuel reductions, and 
DOE expects that agencies will select the most cost-effective 
combination of these options.
2. Other Impacts
    DOE received several comments closely associated with cost impacts. 
A few commenters expressed concern that the rulemaking discourages or 
encourages the use of certain fuel types or other forms of energy 
without any consideration of the comparative efficiency and 
environmental impacts of optional fuel choices. (See AGA, No. 16 at p. 
2; APGA, No. 17 at pp. 2-3). One commenter encouraged DOE to account 
for indirect social costs and another expressed concern that DOE might 
use the ``social cost of carbon'' in its cost/benefit analysis for this 
rule (NRDC, No. 14 at p. 7; EEI, No. 10 at pp. 8-9).
    Several comments were submitted questioning the technical and 
fiscal feasibility of meeting today's requirements, especially the 100 
percent fossil fuel reduction requirement starting in FY 2030. (See 
AGA, No. 16 at p. 2; APGA, No. 17 at p. 2; NPGA, No. 23 at pp. 2, 4; 
GTI, No. 22 at p. 14; DOD-AF, No. 25C at p. 7; EEI, Public Meeting 
Transcript, No. 7 at p. 53)
    DOE acknowledges that achieving the reductions, especially the 100 
percent reduction in 2030, will be challenging. However, the reductions 
mandated today are established by statute. DOE expects design practices 
and technologies will improve and costs will decrease in coming years, 
making it easier and less costly to achieve reductions through either 
energy efficiency or the use of on-site renewable energy. If the 
reductions are technically impracticable in light of the agency's 
functional needs for the building after all of these provisions are 
implemented, as a last resort, Federal agencies (except for GSA) may 
petition the Secretary of Energy through the DOE's Federal Energy 
Management Program (FEMP) Director for a downward adjustment to the 
numeric reduction requirement.
    Finally, DOE received several comments broadly supporting DOE's 
energy conservation and renewable energy efforts or other energy 
conservation or renewable energy efforts. Some of these comments 
supported or opposed the use of certain forms of renewable and fossil 
energy, others supported specific green building measures, and others 
encouraged green technology research. DOE actively supports the 
research and development of a wide range of forms of renewable energy 
and has chosen not to narrow the renewable energy deduction in this 
rule to only certain forms of renewable energy. Many of the suggestions 
made by commenters are currently being implemented by DOE. Executive 
Orders 13423 and 13514 require Federal agencies to implement 
sustainable practices, GSA has established an Office of High 
Performance Green Buildings, and ECPA, as amended by EISA, requires 
sustainable design principles be applied to all new Federal buildings 
and major renovations of Federal buildings (42 U.S.C. 6834(a)(3)). 
Elsewhere in this issue of the Federal Register, the green building 
certification portion of the Sustainable Design NOPR is published as a 
final rule.

G. Guidance and Other Topics

    DOE requested specific comment in the NOPR on what additional 
training would help agencies meet the reductions called for by this 
statute. In addition to comments on that question, DOE received several 
unique comments as part of the Form Letter about alternative 
generation, green buildings, and transportation.
1. Training
    In the NOPR, DOE provided references to various tools to help 
agencies design new Federal buildings and major renovations to achieve 
the required fossil fuel reductions, and asked for comments on 
additional training or tools that might be helpful. 75 FR 63413.
    NIBS confirmed the importance of an experienced and well-trained 
design team. (NIBS, No. 12 at p. 4) AIA commented that improvement of 
energy modeling tools and creation of early-design phase tools is 
necessary. AIA mentioned the need to train architects, engineers and 
other building design professionals to meet these energy targets. They 
also mentioned the need to train building owners, facility managers and 
inhabitants on operations and maintenance. AIA also recommended 
examining tools being used for building analysis. (AIA, No. 15 at p. 2) 
DOD-OUSOD commented that additional

[[Page 61718]]

training should cover reconciliation of force protection/security 
requirements with sustainable design. (DOD-OUSOD, No. 25A at p. 3) ICC 
endorsed the listing of resources including the International Green 
Construction Code and ASHRAE 189.1. (ICC, No. 11 at p. 3) NRDC 
commented that DOE should look at real data and survey other agencies 
to understand what would make the reduction requirement ``technically 
impracticable'' and look at the technology available now and consider 
the technology in development, to answer this question. This would 
allow DOE to target resources to assist agencies in meeting the 
requirements for future years, when greater reductions in fossil fuel 
usage will be required. (NRDC, No. 14 at p. 8)
    DOE agrees about the importance of training and tools to help 
improve the ease and effectiveness of designing high-performance 
buildings. DOE develops, and will continue to develop, tools and 
training. This will include looking at real data and surveying agencies 
on new technologies and experience with high performance building 
practices, including compliance with the fossil fuel reduction 
requirements. DOE agrees it is important to reconcile force protection/
security requirements with energy and sustainable design 
considerations, and will work with agencies to do so.
    As FEMP did with the existing Federal building energy efficiency 
standards, FEMP plans to hold webcasts on the new Federal baseline 
energy efficiency standards, and today's fossil fuel reduction rule. 
FEMP currently keeps all material related to the Federal standards at 
https://www1.eere.energy.gov/femp/regulations/notices_rules.html. FEMP 
also has training available on all aspects of Federal energy management 
and conservation at https://apps1.eere.energy.gov/femp/training.
    In addition to the tools identified in the NOPR and the FEMP tools 
listed above, DOE is also referencing additional resources in the next 
section of this document.
2. Verification and Monitoring
    NRDC recommended that a design verification and commissioning plan 
be part of the building design to help ensure the required reductions. 
They also suggested that a requirement be included for continued 
measurement and monitoring of Federal buildings with mandatory 
reporting and disclosure to the public. (NRDC, No. 14 at p. 16)
    DOE agrees that both building commissioning and verification of 
performance are important to ensure buildings perform as designed to 
achieve the required fossil fuel-generation energy consumption 
reductions. ECPA, however, provides that new Federal buildings and 
major renovations of Federal buildings shall be ``designed'' so that 
fossil fuel-generated energy consumption is reduced. As such, the 
rulemaking only covers the building design, not post-occupancy. EISA 
section 432, however, requires that Federal agencies report and 
benchmark energy and water use for at least 75 percent of facility 
energy use. (42 U.S.C. 8253(f)) Agencies should refer to ``Building 
Energy Use Benchmarking Guidance,'' https://www1.eere.energy.gov/femp/regulations/guidance.html, for information and guidance on these 
requirements.

IV. Reference Resources

    DOE has prepared a list of resources to help Federal agencies 
address the reduction of fossil fuel-generated energy consumption. The 
final rule on energy efficiency published in the Federal Register on 
December 4, 2006 (71 FR 70275) contains some reference resources for 
energy efficiency improvement in building design. These resources come 
in many forms such as design guidance, case studies and in a variety of 
media such as printed documents or on Web sites. The resources for 
energy efficiency improvement will also provide guidance for fossil 
fuel-generated energy consumption reductions.
    DOE is adding to this list of resources to also include:
     U.S. Department of Energy, Federal Energy Management 
Program. (www1.eere.energy.gov/femp). FEMP provides access to numerous 
resources and tools that can help Federal agencies improve the energy 
efficiency of new and existing buildings.
     U.S. Department of Energy, Building Technologies Program. 
Database of high-performance buildings. (eere.buildinggreen.com).
     FedCenter. High Performance Buildings. (www.fedcenter.gov/programs/greenbuildings/).
     American Society of Heating, Refrigerating, and Air-
conditioning Engineers, Inc. ``Advanced Energy Design Guides.'' (https://www.ashrae.org/technology/page/938) and (https://www1.eere.energy.gov/buildings/commercial_initiative/guides.html). The ASHRAE ``Advanced 
Energy Design Guides (AEDGs),'' developed in cooperation with DOE and 
others, are a series of publications designed to provide 
recommendations for achieving energy savings 30 percent better than the 
minimum code requirements of ANSI/ASHRAE/IESNA 90.1-2004, and cover K-
12 school buildings, small retail buildings, small office buildings, 
small hospitals and healthcare facilities, highway lodging, and small 
warehouses and self-storage buildings. Additional design guides aimed 
at establishing 50 percent energy savings over the minimum code 
requirements of ANSI/ASHRAE/IESNA 90.1-2004 are being developed for 
small-to-medium office buildings, mid-box retail, highway lodging, K-12 
schools, grocery/supermarket, and quick-serve restaurants.
     American Society of Heating, Refrigerating, and Air-
conditioning Engineers, Inc. ANSI/ASHRAE/IESNA Standard 189.1 Standard 
for the Design of High-Performance Green Buildings. (www.ashrae.org/publications/page/927).
     Tangherlini, Daniel, Administrator, General Services 
Administration, Letter to Secretary Ernest Moniz, U.S. Department of 
Energy, GSA recommendations and review of green building certification 
systems, October 25, 2013. (https://www.gsa.gov/portal/content/131983?utm_source=OGP&utm_medium=print-radio&utm_term=gbcertificationreview&utm_campaign=shortcuts).
     National Institute of Building Sciences. ``Whole Building 
Design Guide.'' (www.wbdg.org).
     International Code Council. ``International Green 
Construction Code.'' (www.iccsafe.org/cs/IGCC/Pages/default.aspx).
     Northwest Energy Efficiency Alliance, Better Bricks 
Commercial Building Initiative, (www.betterbricks.com).
     Massachusetts High Performance Buildings Database. 
(mtc.buildinggreen.com).
     New Buildings Institute. Buildings Database. 
(buildings.newbuildings.org).
     Environmental Building News. BuildingGreen.com. 
(www.buildinggreen.com) (subscription required).

V. Procedural Issues and Regulatory Review

A. Review under Executive Orders 12866 and 13563

    It has been determined that this regulatory action is a 
``economically significant regulatory action'' under section 3(f)(1) of 
Executive Order 12866. Accordingly, section 6(a)(3) of the Executive 
Order requires that DOE prepare a regulatory impact analysis (RIA) on 
this proposed rule and that the Office of Information and Regulatory

[[Page 61719]]

Affairs (OIRA) in the OMB review this proposed rule. DOE has also 
reviewed this regulation pursuant to Executive Order 13563, issued on 
January 18, 2011. 76 FR 3281 (January 21, 2011). EO 13563 is 
supplemental to and explicitly reaffirms the principles, structures, 
and definitions governing regulatory review established in Executive 
Order 12866.
    The RIA consists of: (1) A statement of the problem addressed by 
this regulation, and the mandate for government action; (2) a 
description and analysis of the feasible policy alternatives to this 
regulation; (3) a quantitative comparison of the impacts of the 
alternatives; and (4) the national economic impacts of the proposed 
standards.
    The RIA calculates the effects of feasible policy alternatives to 
mandatory standards for new Federal buildings and major renovations 
subject to the requirements, and provides a quantitative comparison of 
the impacts of the alternatives. DOE evaluated each alternative in 
terms of its ability to achieve significant energy savings at 
reasonable costs, and compared it to the effectiveness of the proposed 
rule.
    DOE identified the following major policy alternatives for 
achieving increased energy efficiency:
     No new regulatory action;
     ``Zero fossil fuel'' alternative of immediately requiring 
the lowest fossil fuel-generated energy consumption limits specified in 
the rule of zero fossil fuel usage; and
     The proposed approach.
    DOE also considered certain non-regulatory policy alternatives such 
as tax credits, rebates, and labeling programs, and was unable to 
identify any non-regulatory policy alternatives that would be viable 
for Federal buildings. DOE evaluated the alternatives in terms of cost 
and energy savings.

  Table V-1--Construction Cost Increases Under the Fossil Fuel-Reduction Rule and ``Zero Fossil Fuel'' Alternative (Relative to Baseline ``No-action''
                                                          Alternative) Calendar Years 2015-2044
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Fossil fuel-reduction    Fossil fuel-reduction     ``Zero fossil fuel''     ``Zero fossil fuel''
                                                       rule--high PV \1\ cost     rule--low PV cost       alternative--high PV     alternative--low PV
                    Calendar year                          scenario (2012           scenario (2012        cost scenario (2012      cost scenario (2012
                                                             $million)                $million)                $million)                $million)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2015................................................                      $30                      $30                   $1,194                   $1,136
2016................................................                       30                       30                    1,189                    1,103
2017................................................                       30                       30                    1,183                    1,071
2018................................................                       30                       30                    1,178                    1,040
2019................................................                       30                       30                    1,173                    1,010
2020................................................                      536                      447                    1,191                    1,005
2021................................................                      534                      435                    1,186                      976
2022................................................                      532                      424                    1,181                      949
2023................................................                      530                      413                    1,175                      922
2024................................................                      528                      402                    1,170                      896
2025................................................                      841                      618                    1,165                      871
2026................................................                      837                      601                    1,160                      847
2027................................................                      834                      585                    1,155                      824
2028................................................                      830                      569                    1,150                      801
2029................................................                      827                      554                    1,145                      778
2030................................................                    1,135                      736                    1,140                      757
2031................................................                    1,130                      716                    1,140                      757
2032................................................                    1,125                      696                    1,140                      757
2033................................................                    1,120                      677                    1,140                      757
2034................................................                    1,115                      658                    1,140                      757
2035................................................                    1,110                      640                    1,140                      757
2036................................................                    1,110                      640                    1,140                      757
2037................................................                    1,110                      640                    1,140                      757
2038................................................                    1,110                      640                    1,140                      757
2039................................................                    1,110                      640                    1,140                      757
2040................................................                    1,110                      640                    1,140                      757
2041................................................                    1,110                      640                    1,140                      757
2042................................................                    1,110                      640                    1,140                      757
2043................................................                    1,110                      640                    1,140                      757
2044................................................                    1,110                      640                    1,140                      757
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ ``PV'' references solar photovoltaic technologies.


        Table V-2--Annualized Benefits and Costs to Federal Government for New and Existing Construction Under the Fossil Fuel-Reduction Rule \a\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Monetized (2012 $million/year)
                                                Discount rate           --------------------------------------------------------------------------------
                                                                           Primary  estimate \b\        Low  estimate \b\          High  estimate \b\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating (Energy) Cost Savings.....  7%...............................  349.2....................  336.1....................  468.9
                                      3%...............................  606.7....................  580.1....................  841.4
CO2 Reduction at $12.9/t \c\........  5%...............................  46.0.....................  46.0.....................  46.0
CO2 Reduction at $40.8/t \c\........  3%...............................  178.6....................  178.6....................  178.6
CO2 Reduction at $62.2/t \c\........  2.50%............................  270.6....................  270.6....................  270.6
CO2 Reduction at $117.0/t \c\.......  3%...............................  550.9....................  550.9....................  550.9

[[Page 61720]]

 
NOX Reduction at $2,639/t \c\.......  7%...............................  2.9......................  2.9......................  2.9
                                      3%...............................  4.9......................  4.9......................  4.9
Total (Operating Cost Savings, CO2    7% plus CO2 range................  398 to 903...............  385 to 890...............  518 to 1023
 Reduction and NOX Reduction) \d\.
                                      7%...............................  530.7....................  517.6....................  650.4
                                      3%...............................  790.2....................  763.6....................  1024.9
                                      3% plus CO2 range................  658 to 1163..............  631 to 1136..............  892 to 1397
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Incremental Purchase Price Increase.  7%...............................  479.4....................  572.6....................  386.3
                                      3%...............................  574.6....................  695.6....................  453.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Net Benefits/Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2    7% plus CO2 range................  -28 to 477...............  -188 to 317..............  132 to 636
 Reduction and NOX Reduction, Minus
 Incremental Cost Increase to
 Buildings).
                                      7%...............................  104.6....................  -55.0....................  264.2
                                      3%...............................  215.7....................  68.0.....................  571.4
                                      3% plus CO2 range................  187 to 692...............  -65 to 440...............  439 to 944
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Incremental costs are calculated for buildings constructed or renovated in 2015-2044; total benefits extend through 2074.
\b\ The primary, low, and high estimates utilize forecasts of energy prices from the Annual Energy Outlook 2013 reference case. The low and high cases
  were based upon the percentage price deviations from the Annual Energy Outlook 2013 reference case as provided in the Low Economic Growth case and
  High Economic Growth case, respectively.
\c\ These values represent global values (in 2012$) of the social cost of CO2 (SCC) emissions in 2013 under several scenarios developed by the
  Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC
  distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC
  distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value
  ($2,639) of the low ($468) and high ($4,809) values was used.
\d\ Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NOX and CO2 emissions calculated
  at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$).

    Primary, low, and high estimates of the benefits and costs were 
developed to indicate the possible range of these metrics. The future 
energy prices used to compute operating cost savings for the primary 
estimate were taken from the Annual Energy Outlook 2013 reference case. 
The low estimate combines slightly lower energy prices as compared to 
the reference case along with the construction cost developed as part 
of the high-cost PV case (used for incremental construction cost). 
Alternatively, the high estimate combines higher energy prices relative 
to the reference case along with the construction cost developed as 
part of the low-cost PV case. The average incremental construction cost 
based upon the high-cost PV case and the low-cost PV case was used as 
the primary estimate of incremental construction cost.

    Table V-3--Annualized Benefits and Costs to the Federal Government for New and Existing Construction Under the ``Zero Fossil Fuel'' Alternative a
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Monetized (2012 $million/year)
                                                Discount rate           --------------------------------------------------------------------------------
                                                                           Primary  estimate \b\        Low  estimate \b\          High  estimate \b\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Operating (Energy) Cost Savings.....  7%...............................  601.4....................  583.1....................  781.2
                                      3%...............................  1076.6...................  893.6....................  1259.6
CO2 Reduction at $12.9/t \c\........  5%...............................  68.6.....................  68.6.....................  68.6
CO2 Reduction at $40.8/t \c\........  3%...............................  257.9....................  257.9....................  257.9
CO2 Reduction at $62.2/t \c\........  2.50%............................  388.0....................  388.0....................  388.0
CO2 Reduction at $117.0/t \c\.......  3%...............................  793.2....................  793.2....................  793.2
NOX Reduction at $2,639/t \c\.......  7%...............................  4.8......................  4.8......................  4.8
                                      3%...............................  7.1......................  7.1......................  7.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2    7% plus CO2 range................  675 to 1399..............  657 to 1381..............  855 to 1579
 Reduction and NOX Reduction) \d\.    7%...............................  864.1....................  845.8....................  1043.8
                                      3%...............................  1341.6...................  1158.6...................  1524.7
                                      3% plus CO2 range................  1152 to 1877.............  969 to 1694..............  1335 to 2060
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 61721]]

 
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Incremental Purchase Price Increase.  7%...............................  1043.8...................  1167.0...................  920.6
                                      3%...............................  1021.6...................  1161.1...................  882.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Net Benefits/Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total (Operating Cost Savings, CO2    7% plus CO2 range................  -288 to 436..............  -510 to 214..............  -66 to 659
 Reduction and NOX Reduction, Minus   7%...............................  -99.0....................  -321.2...................  123.2
 Incremental Cost Increase to         3%...............................  320.0....................  -2.5.....................  642.5
 Buildings).                          3% plus CO2 range................  131 to 855...............  -192 to 533..............  453 to 1178
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Incremental costs are calculated for buildings constructed or renovated in 2014-2044; total benefits extend through 2074.
\b\ See footnote (b) for Table 2.
\c\ These values represent global values (in 2012$) of the social cost of CO2 (SCC) emissions in 2012 under several scenarios developed by the
  Interagency Working Group on Social Cost of Carbon (SCC) (OMB 2013). The values of $12.9, $40.8, and $62.2 per metric ton are the averages of SCC
  distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $117.0 per ton represents the 95th percentile of the SCC
  distribution calculated using a 3% discount rate. For NOX, values were extracted from OMB guidance (OMB 2006) and updated to 2012$. An average value
  ($2,639) of the low ($468) and high ($4,809) values was used.
\d\ Total monetary benefits for both the 3-percent and 7-percent cases utilize the central estimate of social cost of NOX and CO2 emissions calculated
  at a 3-percent discount rate (averaged across three integrated assessment models (IAMs)), which is equal to $40.8/metric ton (in 2012$).

    The net benefits in 2010 dollars to the Federal government using 
the primary estimate for PV system costs turns out to be $104.6 
million/year using the 7% discount rate, while it is $215.7 million/
year using the 3% discount rate for the fossil fuel reduction rule 
(Table V-2), while the corresponding figures are negative $99.0 
million/year using the 7% discount rate and positive $320 million/year 
using the 3% discount rate for the ``zero fossil fuel'' alternative to 
the rule (Table V-3).

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, Proper Consideration of Small Entities in 
Agency Rulemaking, 67 FR 53461 (August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process (68 FR 7990). The Department 
has made its procedures and policies available on the Office of General 
Counsel's Web site: https://energy.gov/gc/guidance-opinions-0 .
    This proposed rulemaking applies only to the fossil fuel-generated 
energy consumption of new Federal buildings and Federal buildings 
undergoing major renovation. As such, the only entities directly 
regulated by this rulemaking would be Federal agencies. DOE does not 
believe that there will be any impacts on small entities such as small 
businesses, small organizations, or small governmental jurisdictions.
    On the basis of the foregoing, DOE certifies that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. Accordingly, DOE has not prepared a 
regulatory flexibility analysis for this rulemaking. DOE's 
certification and supporting statement of factual basis will be 
provided to the Chief Counsel for Advocacy of the Small Business 
Administration pursuant to 5 U.S.C. 605(b).

C. Review Under the Paperwork Reduction Act of 1995

    This rulemaking will impose no new information or record keeping 
requirements. Accordingly, Office of Management and Budget (OMB) 
clearance is not required under the Paperwork Reduction Act. (44 U.S.C. 
3501 et seq.)

D. Review Under the National Environmental Policy Act of 1969

    DOE prepared an draft Environmental Assessment (EA) (DOE/EA-1778) 
entitled, ``Environmental Assessment for Proposed Rulemaking, 10 CFR 
parts 433 and 435, `Fossil Fuel-Generated Energy Consumption Reduction 
for New Federal Buildings and Major Renovations of Federal Buildings,'' 
pursuant to the Council on Environmental Quality's (CEQ) Regulations 
for Implementing the Procedural Provisions of the National 
Environmental Policy Act (40 CFR parts 1500-1508), the National 
Environmental Policy Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et 
seq.), and DOE's NEPA Implementing Procedures (10 CFR part 1021).
    The draft EA addresses the possible environmental effects 
attributable to the implementation of the today's rule. The rule by its 
fundamental intent has a positive impact on the environment. The only 
anticipated impact of today's rulemaking would be a decrease in outdoor 
air pollutants resulting from reduced fossil fuel-generated energy 
consumption in new Federal buildings and major renovations of Federal 
buildings.

E. Review Under Executive Order 13132, ``Federalism''

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 
1999), imposes certain requirements on agencies formulating and 
implementing policies or regulations that preempt State law or that 
have Federalism implications. The Executive Order requires agencies to 
examine the constitutional and statutory authority supporting any 
action that would limit the policymaking discretion of the States and 
to carefully assess the necessity for such actions. The Executive Order 
also requires agencies to have an accountable process to ensure 
meaningful and timely input by State and local officials in the 
development of regulatory policies that have Federalism implications. 
On March 14, 2000, DOE published a

[[Page 61722]]

statement of policy describing the intergovernmental consultation 
process it will follow in the development of such regulations. (65 FR 
13735). DOE examined this rulemaking and determined that it would not 
preempt State law and would not have a substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of Government. No further action is required by 
Executive Order 13132.

F. Review Under Executive Order 12988, ``Civil Justice Reform''

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Federal agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct, rather than a general standard and 
promote simplification and burden reduction. Section 3(b) of Executive 
Order 12988 specifically requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect, if any; (2) clearly specifies any effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct, while promoting simplification and burden 
reduction; (4) specifies the retroactive effect, if any; (5) adequately 
defines key terms; and (6) addresses other important issues affecting 
clarity and general draftsmanship under any guidelines issued by the 
Attorney General. Section 3(c) of Executive Order 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in section 3(a) and section 3(b) to determine whether they 
are met or it is unreasonable to meet one or more of them. DOE has 
completed the required review and determined that, to the extent 
permitted by law, this rulemaking meets the relevant standards of 
Executive Order 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. 
L. 104-4) requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and tribal governments and the 
private sector. For a proposed regulatory action likely to result in a 
rule that may cause the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector of $100 million 
or more in any one year (adjusted annually for inflation), section 202 
of UMRA requires a Federal agency to publish a written statement that 
estimates the resulting costs, benefits, and other effects on the 
national economy. (2 U.S.C. 1532(a) and (b)) The UMRA also requires a 
Federal agency to develop an effective process to permit timely input 
by elected officers of State, local, and tribal governments on a 
proposed ``significant intergovernmental mandate,'' and requires an 
agency plan for giving notice and opportunity for timely input to 
potentially affected small governments before establishing any 
requirements that might significantly or uniquely affect small 
governments. On March 18, 1997, DOE published a statement of policy on 
its process for intergovernmental consultation under UMRA (62 FR 12820) 
(also available at https://energy.gov/gc/guidance-opinions-0). This 
rulemaking contains neither an intergovernmental mandate nor a mandate 
that may result in the expenditure of $100 million or more in any year 
by State, local, and tribal governments, in the aggregate, or by the 
private sector so these requirements under the Unfunded Mandates Reform 
Act do not apply.

H. Review Under the Treasury and General Government Appropriations Act 
of 1999

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 (Pub. L. 105-277) requires Federal agencies to issue a 
Family Policymaking Assessment for any rule that may affect family 
well-being. This supplemental proposed rule would not have any impact 
on the autonomy or integrity of the family as an institution. 
Accordingly, DOE has preliminarily concluded that it is not necessary 
to prepare a Family Policymaking Assessment.

I. Review Under Executive Order 12630, ``Governmental Actions and 
Interference With Constitutionally Protected Property Rights''

    The Department has determined, under Executive Order 12630, 
``Governmental Actions and Interference with Constitutionally Protected 
Property Rights,'' 53 FR 8859 (March 18, 1988), that this rule would 
not result in any takings which might require compensation under the 
Fifth Amendment to the United States Constitution.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for agencies to review most 
disseminations of information to the public under guidelines 
established by each agency pursuant to general guidelines issued by 
OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), 
and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). 
DOE has reviewed this rulemaking under the OMB and DOE guidelines and 
has preliminarily concluded that it is consistent with applicable 
policies in those guidelines.

K. Review Under Executive Order 13211, ``Actions Concerning Regulations 
That Significantly Affect Energy Supply, Distribution, or Use''

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to the 
Office of Information and Regulatory Affairs (OIRA), Office of 
Management and Budget, a Statement of Energy Effects for any proposed 
significant energy action. A ``significant energy action'' is defined 
as any action by an agency that promulgated or is expected to lead to 
promulgation of a final rule, and that: (1) Is a significant regulatory 
action under Executive Order 12866, or any successor order; and (2) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy, or (3) is designated by the 
Administrator of OIRA as a significant energy action. For any proposed 
significant energy action, the agency must give a detailed statement of 
any adverse effects on energy supply, distribution, or use should the 
proposal be implemented, and of reasonable alternatives to the action 
and their expected benefits on energy supply, distribution, and use. 
This rulemaking would not have a significant adverse effect on the 
supply, distribution, or use of energy. Moreover, as the rulemaking 
would result in increased building energy efficiency, it would not have 
a significant adverse effect on energy. For these reasons, the 
rulemaking is not a significant energy action. Accordingly, DOE has not 
prepared a Statement of Energy Effects.

[[Page 61723]]

L. Review Under the Information Quality Bulletin for Peer Review

    In consultation with the Office of Science and Technology Policy 
(OSTP), OMB issued on December 16, 2004, its ``Final Information 
Quality Bulletin for Peer Review'' (the Bulletin). 70 FR 2664 (January 
14, 2005). The Bulletin establishes that certain scientific information 
shall be peer reviewed by qualified specialists before it is 
disseminated by the Federal government, including influential 
scientific information related to agency regulatory actions. The 
purpose of the Bulletin is to enhance the quality and credibility of 
the government's scientific information. Under the Bulletin, EIA's 
CBECS and RECS are ``influential scientific information,'' which the 
Bulletin defines as ``scientific information that the agency reasonably 
can determine will have or does have a clear and substantial impact on 
important public policies or private sector decisions.'' 70 FR 2664, 
2667 (January 14, 2005). The Academy recommendations have been peer 
reviewed pursuant to section II.2 of the Bulletin. Both surveys are 
peer reviewed internally within EIA and other DOE offices before they 
are published. In addition, both surveys are subject to public comment 
that EIA addresses before finalizing CBECS and RECS.

List of Subjects in 10 CFR Parts 433 and 435

    Buildings and facilities, Energy conservation, Engineers, Federal 
buildings and facilities, Fossil fuel reductions, Housing, 
Incorporation by reference, Multi-family residential buildings.

    Issued in Washington, DC, on September 28, 2014.
David Danielson,
Assistant Secretary, Energy Efficiency and Renewable Energy.

    For the reasons set forth in the preamble, DOE proposes to amend 
chapter II of title 10 of the Code of Federal Regulations as set forth 
below:

PART 433--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND 
CONSTRUCTION OF NEW FEDERAL COMMERCIAL AND MULTI-FAMILY HIGH-RISE 
RESIDENTIAL BUILDINGS

0
1. The authority citation for part 433 continues to read as follows:

    Authority:  42 U.S.C. 6831-6832, 6834-6835; 42 U.S.C. 7101 et 
seq.

0
2. In Sec.  433.1, paragraph (b) is added to read as follows:


Sec.  433.1  Purpose and scope.

* * * * *
    (b) This part also establishes a maximum allowable fossil fuel-
generated energy consumption standard for new Federal buildings that 
are commercial and multi-family high-rise residential buildings and 
major renovations to Federal buildings that are commercial and multi-
family high-rise residential buildings, for which design for 
construction began on or after October 14, 2015.
* * * * *
0
3. In Sec.  433.2:
0
a. Add in alphabetical order, the definitions of ``Combined heat and 
power (CHP) system,'' ``Construction cost,'' ``District energy 
system,'' ``Fiscal year (FY),'' ``Major renovation,'' ``Multi-family 
high-rise residential building,'' ``Power purchase agreement (PPA),'' 
and ``Renewable energy certificate'';
0
b. Revise the definitions of ``New Federal building'' and ``Proposed 
building''; and
0
c. Remove the definitions of ``Life-cycle cost'' and ``Life-cycle cost-
effective''.
    The additions and revisions read as follows:


Sec.  433.2  Definitions.

* * * * *
    Combined heat and power (CHP) system means an integrated system, 
located at or near a building or facility that is used to generate both 
heat and electricity for use in the building or facility.
* * * * *
    Construction cost means all costs associated with design and 
construction of a building. It includes the cost of design, permitting, 
construction (materials and labor), and building commissioning. It does 
not include legal or administrative fees, or the cost of acquiring the 
land.
* * * * *
    District energy system means a central energy conversion plant and 
transmission and distribution system that provides thermal energy to a 
group of buildings (heating via hot water or steam, and/or cooling via 
chilled water). This definition only includes thermal energy systems; 
central energy supply systems that only provide electricity are 
excluded from this definition.
* * * * *
    Fiscal year (FY) begins on October 1 of the year prior to the 
specified calendar year and ends on September 30 of the specified 
calendar year.
* * * * *
    Major renovation means changes to a building that provide 
significant opportunities for compliance with other applicable 
requirements in this part. For subpart B--reduction in fossil fuel-
related energy consumption, for example, replacement of the HVAC 
system, lighting system, building envelope, or other components of the 
building that have a major impact on energy usage would constitute a 
major renovation.
    Multi-family high-rise residential building means a residential 
building that contains 3 or more dwelling units and that is designed to 
be 4 or more stories above grade.
    New Federal building means any new building (including a complete 
replacement of an existing building from the foundation up) to be 
constructed by, or for the use of, any Federal agency. Such term shall 
include buildings built for the purpose of being leased by a Federal 
agency, and privatized military housing.
    Power purchase agreement means an agreement with an electricity 
producer for all or a specified portion of the electricity produced 
from a particular power source, in this case a renewable energy source, 
for a specified period of time.
* * * * *
    Proposed Building means the design for construction of a new 
Federal commercial or multi-family high-rise residential building, or 
major renovation to a Federal commercial multi-family high-rise 
residential building, proposed for construction.
* * * * *
    Renewable energy certificate means the technology and environmental 
(non-energy) attributes that represent proof that 1 megawatt-hour (MWh) 
of electricity was generated from a renewable energy resource, and can 
be sold separately from the underlying generic electricity with which 
it is associated.
0
4. Revise Sec.  433.3(b)(3) to read as follows:


Sec.  433.3  Materials incorporated by reference.

* * * * *
    (b) * * *
    (3) ANSI/ASHRAE/IESNA 90.1-2010, (``ASHRAE 90.1-2010''), Energy 
Standard for Buildings Except Low-Rise Residential Buildings, I-P 
Edition, Copyright 2010, IBR approved for Sec. Sec.  433.2, 433.100, 
433.101, Appendix A to subpart B.
0
5. Revise Sec.  433.4 to read as follows:


Sec.  433.4  Life-cycle cost-effective.

    Except as specified in subparts A, B or C of this part, Federal 
agencies shall determine life-cycle cost-effectiveness

[[Page 61724]]

by using the procedures set out in subpart A of part 436 of this 
chapter. A Federal agency may choose to use any of four methods, 
including life-cycle cost, net savings, savings-to-investment ratio, 
and adjusted internal rate of return using the discount rate published 
in the annual supplement to the Life Cycle Costing Manual for the 
Federal Energy Management Program (NIST 85-3273).
0
6. Subpart B is added to part 433 to read as follows:
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec.
433.200 Fossil fuel-generated energy consumption requirement.
433.201 Fossil fuel-generated energy consumption determination.
433.202 Petition for downward adjustment.

Appendix A to Subpart B of Part 433--Maximum Allowable Fossil Fuel-
Generated Energy Consumption

Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption


Sec.  433.200  Fossil fuel-generated energy consumption requirement.

    (a) New Federal buildings. New Federal buildings that are 
commercial and multi-family high rise residential buildings, for which 
design for construction began on or after October 14, 2015, must be 
designed to meet the requirements of paragraphs (c) or (d) of this 
section, as applicable, if:
    (1) The subject building is a public building as defined in 40 
U.S.C. 3301 and for which transmittal of a prospectus to Congress is 
required under 40 U.S.C. 3307; or
    (2) The cost of the building is at least $2,500,000 (in 2007 
dollars, adjusted for inflation).
    (b) Major renovations. (1) Major renovations to Federal buildings 
that are commercial and multi-family high-rise residential buildings, 
for which design for construction began on or after October 14, 2015, 
must be designed to meet the requirements of paragraph (c) or (d) of 
this section, as applicable, if:
    (i) The renovation is a major renovation to a public building as 
defined in 40 U.S.C. 3301 and for which transmittal of a prospectus to 
Congress is required under 40 U.S.C. 3307; or
    (ii) The cost of the major renovation is at least $2,500,000 (in 
2007 dollars, adjusted for inflation).
    (2) This subpart applies only to the portions of the proposed 
building or proposed building systems that are being renovated and to 
the extent that the scope of the renovation permits compliance with the 
applicable requirements in this subpart. Unaltered portions of the 
proposed building or proposed building systems are not required to 
comply with this subpart.
    (3) For leased buildings, this subpart applies to major renovations 
only if the building was originally built for the use of any Federal 
agency, including being leased by a Federal agency.
    (c) Federal buildings that are of the type included in Appendix A 
of this subpart--(1) Design for construction began during fiscal year 
2014 through fiscal year 2029. The fossil fuel-generated energy 
consumption of the proposed building, based on the building design and 
calculated according to Sec.  433.201(a), must not exceed the value 
identified in Tables 1-4 of Appendix A of this subpart for the 
associated building type, climate zone, and fiscal year in which design 
for construction began.
    (2) Design for construction began during or after fiscal year 2030. 
The fossil fuel-generated energy consumption of the proposed building, 
based on building design and calculated according to Sec.  433.201(a), 
must be zero.
    (3) Mixed-use buildings. (i) For buildings that combine two or more 
building types identified in Tables 1-4 of Appendix A of this subpart, 
the maximum allowable fossil fuel-generated energy consumption of the 
proposed building is equal to the averaged applicable building type 
values in Tables 1-4 weighted by floor area of the present building 
types.
    (ii) For example, if a proposed building for which design for 
construction began in FY2014 that is to be built in climate zone 1 has 
a total of 200 square feet--100 square feet of which qualifies as 
College/University and 100 square feet of which qualifies as 
Laboratory--the maximum allowable fossil fuel-generated energy 
consumption is equal to:

[(100 sqft. x 89 kBtu/yr.-sqft.) + (100 sqft x 251 kBtu/yr.-sqft.)]/200 
sqft. = 170 kBtu/yr.-sqft.

    (d) Federal buildings that are of the type not included in Appendix 
A of this subpart--(1) Process load buildings. For building types that 
are not included in any of the building types listed in Tables 1-4 of 
Appendix A of this subpart, Federal agencies must select the applicable 
building type, climate zone, and fiscal year in which design for 
construction began from Tables 1-4 of Appendix A of this subpart that 
most closely corresponds to the proposed building without the process 
load. The estimated fossil fuel-generated energy consumption of the 
process load must be added to the maximum allowable fossil fuel-
generated energy consumption of the applicable building type for the 
appropriate fiscal year and climate zone to calculate the maximum 
allowable fossil fuel-generated energy consumption for the building. 
The same estimated fossil fuel-generated energy consumption of the 
process load that is added to the maximum allowable fossil fuel-
generated energy consumption of the applicable building must also be 
used in determining the fossil fuel-generated energy consumption of the 
proposed building.
    (2) Mixed-use buildings. For buildings that combine two or more 
building types with process loads or, alternatively, that combine one 
or more building types with process loads with one or more building 
types in Tables 1-4 of Appendix A of this subpart, the maximum 
allowable fossil fuel-generated energy consumption of the proposed 
building is equal to the averaged process load building values 
determined under paragraph (d)(1) of this section and the applicable 
building type values in Tables 1-4 of Appendix A of this subpart, 
weighted by floor area.


Sec.  433.201  Fossil fuel-generated energy consumption determination.

    (a) The fossil fuel-generated energy consumption of a proposed 
building is calculated as follows:

Equation 1: Fossil fuel-generated energy consumption = ((3.412 kBtu/kwh 
x Fossil Fuel Generation Factor x (Proposed Building Site Electricity 
Consumption--Renewable Energy and CHP Electricity Deduction)/
Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of 
Proposed Building x Other Fuels Source Energy Multiplier))/Floor Area


Whereas:

(1) Fossil Fuel-Generation Factor is equal to 
(AEPcoal+AEPpl+AEPpc+AEPng+A
EPog)/Total AEP

Where

AEP = annual electrical production
pl = petroleum liquids
pc = petroleum coke
ng = natural gas
og = other gas

    All values are taken from Table 3.2.A of the EIA Electric Power 
Annual Report, which is updated on a periodic basis. DOE will on an 
annual basis calculate the Fossil Fuel Generation Factor and publish 
the result at the following Web address: https://energy.gov/eere/femp/federal-energy-management-program.
    (2) Proposed Building Site Electricity Consumption equals the 
estimated site electricity consumption of the proposed

[[Page 61725]]

building calculated in accordance with the Performance Rating Method in 
Appendix G of ASHRAE 90.1-2010 (incorporated by reference; see Sec.  
433.3) measured in kilowatt hours per year (kWh/yr).
    (3) Renewable Energy and CHP Electricity Deduction equals the total 
contribution specified in paragraph (b) of this section, measured in 
kilowatt hours per year (kWh/yr).
    (4) Electricity Source Energy Factor. For electricity purchased 
from the grid, the Electricity Source Energy Factor is equal to 0.316. 
For on-site electrical generation, the Electricity Source Factor is the 
estimated efficiency of the generating equipment and any estimated 
distribution losses that may occur.
    (5) Direct Fossil Fuel Consumption of Proposed Building equals the 
total site fossil fuel consumption of the proposed building calculated 
in accordance with the Performance Rating Method in Appendix G of 
ASHRAE 90.1-2010 (incorporated by reference; see Sec.  433.3), 
excluding fossil fuel consumption for electricity generation, and 
measured in thousands of British thermal units per year (kBtu/yr). This 
includes any fossil fuel consumption attributable to non-electric power 
(e.g., heat or steam) used in a proposed building that is supplied by a 
district energy system or CHP system.
    (6) Other Fuels Source Energy Multiplier. For purposes of Equation 
1, the multipliers are as follows:

Natural gas 1.046
Fuel oil 1.00
Propane 1.00
District steam (non-CHP) 1.35
District steam (CHP) 2.30
District hot water 1.28
Chilled water 1.05
Coal 1.00

    (7) Floor Area is the area enclosed by the exterior walls of a 
building, both finished and unfinished, including indoor parking 
facilities, basements, hallways, lobbies, stairways, and elevator 
shafts.
    (b) Renewable and CHP electricity deductions--(1) Renewable 
electricity. The following renewable electricity generation qualifies 
as a deduction under paragraph (a) of this section to the extent that 
the renewable electricity generation represents new electric generating 
capacity or a new renewable energy obligation on the part of the 
agency, and not a reassignment of existing capacity or obligations:
    (i) On-site renewable electricity generation is the amount of 
electricity measured in kilowatt hours per year (kWh/yr) to be consumed 
by the building that is contributed by renewable electricity generated 
at the Federal site or facility on which the building will be located. 
On-site renewable electricity can only be deducted if the environmental 
attributes are not transferred.
    (ii) Off-site renewable electricity generation is the amount of 
renewable electricity measured in kilowatt hours per year (kWh/yr) 
generated at a site or facility, either Federal or non-federal, other 
than the Federal site or facility on which the building will be located 
and that is designated for the purpose of complying with this section, 
and may include renewable electricity generation purchased under Power 
Purchase Agreements and Renewable Energy Certificates.
    (2) Limitation on the use of renewable electricity generation for 
new Federal buildings and major renovations. The environmental 
attributes of the renewable electricity generation must not be 
transferred. The agency must ensure that the environmental attributes 
of renewable electricity generation are dedicated to meeting the fossil 
fuel-generated energy consumption reduction requirements of the 
proposed building.
    (3) CHP deduction. Electricity associated with non-electric power 
provided to a proposed building by a district energy system that is a 
CHP system or an on-site CHP system qualifies as a deduction under 
paragraph (a) of this section and is equal to the total heat delivered 
to the proposed building from the direct energy system divided by total 
heat produced by the CHP system, times the total electricity produced 
by the CHP system.


Sec.  433.202  Petition for downward adjustment.

    (a) New Federal buildings. (1) Upon petition by a Federal agency, 
excluding the General Services Administration (GSA) but including GSA-
tenant agencies with significant control over building design, the 
Director of the Federal Energy Management Program may adjust the 
applicable maximum allowable fossil fuel-generated energy consumption 
standard with respect to a specific building, upon written 
certification from the head of the agency designing the building, or 
the head of a GSA-tenant agency, that the requested adjustment is the 
largest feasible reduction in fossil fuel-generated consumption that 
can practicably be achieved in light of the specified functional needs 
for that building, as demonstrated by:
    (i) A statement sealed by the design engineer that the proposed 
building was designed in accordance with the applicable energy 
efficiency requirement in Subpart A of this Part;
    (ii) A description of the technologies and practices that were 
evaluated and rejected, including a justification of why they were not 
included in the design for construction; and
    (iii) Any other information the agency determines would help 
explain its request;
    (2) The head of the agency designing the building, or the head of a 
GSA-tenant agency, must also include the following information in the 
petition:
    (i) A general description of the building, including but not 
limited to location, use type, floor area, stories, and functional 
needs;
    (ii) The maximum allowable fossil fuel-generated energy consumption 
for the building from Tables 1-4 of Appendix A of this subpart;
    (iii) The estimated fossil fuel-generated energy consumption of the 
proposed building;
    (iv) A description of the proposed building's energy-related 
features, including but not limited to:
    (A) Building envelope, including, but not limited to, construction 
materials, insulation levels, and the type, area, heat loss and solar 
heat gain and visible light transmission coefficients of windows and 
other glazing;
    (B) HVAC system type and configuration;
    (C) HVAC equipment sizes and efficiencies;
    (D) Ventilation systems (including outdoor air volume, controls 
technique, heat recovery systems, and economizers, if applicable);
    (E) Service water heating system configuration and equipment 
(including solar hot water, wastewater heat recovery, and controls for 
circulating hot water systems, if applicable);
    (F) Lighting technology, interior lighting power, and lighting 
control techniques;
    (G) Estimated process and plug loads; and
    (H) Any other energy-related equipment; and
    (3) The Director of the Federal Energy Management Program may 
concur in whole or in part with a petition. Upon concurring in part, 
the Director of the Federal Energy Management Program will establish an 
applicable maximum allowable fossil fuel-generated energy consumption 
standard with respect to a specific building other than the value put 
forth in the petition.
    (4) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to:


[[Page 61726]]


U.S. Department of Energy, Federal Energy Management Program, Director, 
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000 
Independence Ave. SW., Washington, DC 20585-0121.

    (5) The Director will notify the requesting agency in writing 
whether the petition for downward adjustment to the numeric reduction 
requirement is approved, in whole or in part, or rejected, within 90 
days of submittal. If the Director rejects the petition or establishes 
a value other than that presented in the petition, the Director will 
forward its reasons for rejection to the petitioning agency.
    (b) Major renovations to Federal buildings. (1) Major renovation of 
the whole building. Upon petition by a Federal agency, excluding the 
General Services Administration (GSA) but including GSA-tenant agencies 
with significant control over renovation design, the Director of the 
Federal Energy Management Program will adjust the applicable maximum 
allowable fossil fuel-generated energy consumption standard with 
respect to a specific major renovation of a whole building, upon 
written certification from the head of the agency designing the 
building, or the head of a GSA-tenant agency, that the requested 
adjustment is the largest feasible reduction in fossil fuel-generated 
consumption that can practicably be achieved in light of the specified 
functional needs for that building, as demonstrated by a statement 
stamped by the design engineer that the proposed building was designed 
consistent with the energy efficiency requirement in subpart A of this 
part that corresponds to the date of the proposed building.
    (2) Major renovation of a building system or component. Upon 
petition by a Federal agency, excluding the General Services 
Administration (GSA) but including GSA-tenant agencies with significant 
control over renovation design, the Director of the Federal Energy 
Management Program will adjust the applicable maximum allowable fossil 
fuel-generated energy consumption standard with respect to a specific 
major renovation limited to a building system or component, upon 
written certification from the head of the agency designing the 
building, or the head of a GSA-tenant agency, that the requested 
adjustment is the largest feasible reduction in fossil fuel-generated 
consumption that can practicably be achieved in light of the specified 
functional needs for that building, as demonstrated by a statement 
stamped by the design engineer that the proposed building incorporates 
commercially available systems and/or components that provide a level 
of energy efficiency that is life-cycle cost effective.
    (3) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to:

U.S. Department of Energy, Federal Energy Management Program, Director, 
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000 
Independence Ave. SW., Washington, DC 20585-0121.

    (4) The downward adjustment for a major renovation will be deemed 
approved upon submittal of the certification required in paragraphs 
(b)(1) or (b)(2) of this section, as applicable.

Appendix A to Subpart B of Part 433--Maximum Allowable Fossil Fuel-
Generated Energy Consumption

    (a) For purposes of the tables in this Appendix, the climate 
zones for each county in the United States are those listed in 
Normative Appendix B Building Envelope Climate Criteria, Table B-1 
U.S. Climate Zones, ASHRAE 90.1-2010 (incorporated by reference; see 
Sec.  433.3).
    (b) For purpose of Appendix A, the following definitions apply:
    Education means a category of buildings used for academic or 
technical classroom instruction, such as elementary, middle, or high 
schools, and classroom buildings on college or university campuses. 
Buildings on education campuses for which the main use is not as a 
classroom are included in the category relating to their use. For 
example, administration buildings are part of ``Office,'' 
dormitories are ``Lodging,'' and libraries are ``Public Assembly.''
    Food Sales means a category of buildings used for retail or 
wholesale of food. For example, grocery stores are ``Food Sales.''
    Food Service means a category of buildings used for preparation 
and sale of food and beverages for consumption. For example, 
restaurants are ``Food Service.''
    Health Care (Inpatient) means a category of buildings used as 
diagnostic and treatment facilities for inpatient care.
    Health Care (Outpatient) means a category of buildings used as 
diagnostic and treatment facilities for outpatient care. Medical 
offices are included here if they use any type of diagnostic medical 
equipment (if they do not, they are categorized as an office 
building).
    Laboratory means a category of buildings equipped for scientific 
experimentation or research as well as other technical, analytical 
and administrative activities.
    Lodging means a category of buildings used to offer multiple 
accommodations for short-term or long-term residents, including 
skilled nursing and other residential care buildings.
    Mercantile (Enclosed and Strip Malls) means a category of 
shopping malls comprised of multiple connected establishments.
    Multi-Family High-Rise Residential Buildings means a category of 
residential buildings that contain 3 or more dwelling units and that 
is designed to be 4 or more stories above grade.
    Office means a category of buildings used for general office 
space, professional office, or administrative offices. Medical 
offices are included here if they do not use any type of diagnostic 
medical equipment (if they do, they are categorized as an outpatient 
health care building).
    Public Assembly means a category of public or private buildings, 
or spaces therein, in which people gather for social or recreational 
activities.
    Public Order and Safety means a category of buildings used for 
the preservation of law and order or public safety.
    Religious Worship means a category of buildings in which people 
gather for religious activities, (such as chapels, churches, 
mosques, synagogues, and temples).
    Retail (Other Than Mall) means a category of buildings used for 
the sale and display of goods other than food.
    Service means a category of buildings in which some type of 
service is provided, other than food service or retail sales of 
goods.
    Warehouse and Storage means a category of buildings used to 
store goods, manufactured products, merchandise, raw materials, or 
personal belongings (such as self-storage).

     Table 1--FY2013-FY2014 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
                                                                                      Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building type.................                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Education...................................  College/university............     89     88     87     81       59       84     71     73     65     70     77     65     92     82     97    146

[[Page 61727]]

 
Education...................................  Elementary/middle school......     54     54     52     49       40       50     45     41     39     39     42     37     47     43     48     71
Education...................................  High school...................     65     65     63     59       43       61     52     53     48     51     56     48     67     60     71    106
Education...................................  Other classroom education.....     36     36     35     33       24       34     29     30     27     29     31     27     37     33     40     59
Education...................................  Preschool/daycare.............     70     69     67     63       52       65     58     53     50     51     54     47     60     56     62     92
Food Sales..................................  Convenience store.............    194    215    208    197      178      213    189    164    173    181    166    153    181    200    199    259
Food Sales..................................  Convenience store with gas....    156    173    167    158      144      171    152    132    139    146    133    124    145    161    160    209
Food Sales..................................  Grocery store/food market.....    162    179    173    164      149      177    158    137    144    151    138    128    150    167    166    216
Food Sales..................................  Other food sales..............     49     54     52     50       45       54     48     41     44     46     42     39     46     50     50     65
Food Service................................  Fast food.....................    378    395    402    358      333      407    338    303    323    327    308    286    339    373    375    490
Food Service................................  Other food service............    112    117    118    106       97      120    100     90     96     98     91     84    100    110    111    144
Food Service................................  Restaurant/cafeteria..........    204    214    216    195      177      219    183    164    175    180    166    154    182    202    203    264
Inpatient Health Care.......................  Hospital/inpatient health.....    205    210    215    182      188      212    174    142    149    156    129    120    133    146    137    163
Laboratory..................................  Laboratory....................    251    254    247    233      197      245    217    196    190    192    203    184    229    216    238    320
Lodging.....................................  Dormitory/fraternity/sorority.     58     61     61     62       42       63     56     58     53     59     65     55     76     70     84    118
Lodging.....................................  Hotel.........................     71     73     70     67       62       70     68     55     57     57     57     55     62     62     64     74
Lodging.....................................  Motel or inn..................     80     76     76     66       63       73     65     52     54     52     52     50     57     55     56     68
Lodging.....................................  Nursing home/assisted living..    118     12    117    110       93      115    103     93     90     91     96     87    108    102    112    151
Lodging.....................................  Other lodging.................     76     73     72     63       60       69     62     50     52     50     50     48     54     53     54     65
Mercantile..................................  Enclosed mall.................     81     81     79     77       58       78     68     69     64     66     77     67     91     84     99    143
Mercantile..................................  Strip shopping mall...........     85     85     83     81       61       82     72     72     67     69     81     70     96     89    104    150
Office......................................  Administrative/profess. office     56     58     57     54       43       56     47     46     43     44     48     42     54     50     57     80
Office......................................  Bank/other financial..........     80     82     80     77       62       79     67     65     61     62     67     59     77     71     81    114
Office......................................  Government office.............     70     72     71     67       54       70     59     57     54     55     59     52     68     62     71    100
Office......................................  Medical office (non-               48     49     48     46       37       48     40     39     37     37     40     36     46     42     48     68
                                               diagnostic).
Office......................................  Mixed-use office..............     65     67     65     63       50       65     54     53     50     51     55     48     63     58     66     93
Office......................................  Other office..................     54     56     55     52       42       54     45     44     42     42     46     40     52     48     55     78
Outpatient Health Care......................  Clinic/other outpatient health     72     70     70     63       60       70     56     48     50     46     45     44     47     48     45     52
Outpatient Health Care......................  Medical office (diagnostic)...     48     46     47     42       40       46     38     32     33     31     30     30     32     32     30     35
Public Assembly.............................  Entertainment/culture.........     33     33     32     30       26       32     28     26     25     25     26     24     30     28     31     42
Public Assembly.............................  Library.......................     86     87     85     80       68       84     75     68     65     66     70     63     79     74     82    110
Public Assembly.............................  Other public assembly.........     40     40     39     37       31       39     34     31     30     30     32     29     36     34     38     51
Public Assembly.............................  Recreation....................     37     38     37     35       29       36     32     29     28     29     30     27     34     32     35     47
Public Assembly.............................  Social/meeting................     39     39     38     36       31       38     34     30     29     30     31     28     35     33     37     49
Public Order & Safety.......................  Fire station/police station...     92     93     91     86       73       90     80     72     70     71     75     68     84     80     88    118
Public Order & Safety.......................  Other public order and safety.     84     85     83     78       66       82     73     66     64     65     68     62     77     73     80    107
Religious Worship...........................  Religious worship.............     33     33     32     31       26       32     29     26     25     25     27     24     30     28     31     42
Retail (except malls).......................  Other retail..................     70     72     70     68       50       69     59     60     56     56     66     58     79     73     85    123
Retail (except malls).......................  Retail store..................     40     41     40     39       28       39     34     34     32     32     38     33     45     42     49     71
Retail (except malls).......................  Vehicle dealership showroom...     71     72     70     68       50       69     59     60     56     57     67     58     79     73     85    123
Service.....................................  Other service.................     85     86     84     79       65       83     71     67     63     64     69     66     76     70     81    104
Service.....................................  Post office/postal center.....     60     61     59     56       47       59     52     47     45     46     49     44     55     52     57     77
Service.....................................  Repair shop...................     40     40     39     37       31       39     34     32     30     30     33     31     36     33     38     49
Service.....................................  Vehicle service/repair shop...     46     47     46     43       36       45     39     37     34     35     38     36     42     38     44     57
Service.....................................  Vehicle storage/maintenance...     20     20     20     19       15       20     17     16     15     15     16     16     18     17     19     25
Warehouse...................................  Distribution/shipping center..     18     23     24     26       14       26     20     27     24     23     35     32     49     41     59    108
Warehouse...................................  Non-refrigerated warehouse....      9     11     11     13        7       12      9     13     12     11     17     15     24     20     29     52
Warehouse...................................  Refrigerated warehouse........     97    100    102     90       81      101     80     75     78     79     74     68     82     89     90    123

[[Page 61728]]

 
Residential.................................  Multi-family high-rise             48     46     39     41       24       40     28     41     37     41     45     38     52     46     55     72
                                               residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


     Table 2--FY2015-FY2019 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
                                                                                      Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building type.................                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Education...................................  College/university............     69     69     67     63       46       65     55     56     51     55     60     51     71     64     76    113
Education...................................  Elementary/middle school......     42     42     40     38       31       39     35     32     30     31     32     29     36     34     37     56
Education...................................  High school...................     51     50     49     46       34       48     40     41     37     40     44     37     52     47     55     83
Education...................................  Other classroom education.....     28     28     28     26       19       27     23     23     21     22     24     21     29     26     31     46
Education...................................  Preschool/daycare.............     55     54     52     49       40       50     45     41     39     39     42     37     47     43     48     72
Food Sales..................................  Convenience store.............    151    167    161    153      139      165    147    128    134    141    129    119    140    156    155    202
Food Sales..................................  Convenience store with gas....    122    135    130    123      112      133    119    103    108    113    104     96    113    125    125    163
Food Sales..................................  Grocery store/food market.....    126    139    135    127      116      138    123    106    112    117    107     99    117    130    129    168
Food Sales..................................  Other food sales..............     38     42     41     39       35       42     37     32     34     36     32     30     35     39     39     51
Food Service................................  Fast food.....................    294    307    313    279      259      317    263    235    251    255    239    222    264    290    292    381
Food Service................................  Other food service............     87     91     92     83       75       93     78     70     74     76     71     66     78     86     86    112
Food Service................................  Restaurant/cafeteria..........    159    166    168    151      138      170    143    128    136    140    129    120    142    157    158    206
Inpatient Health Care.......................  Hospital/inpatient health.....    159    164    167    142      146      165    136    111    116    121    100     93    103    113    107    127
Laboratory..................................  Laboratory....................    195    197    192    182      153      190    169    153    148    150    158    143    178    168    185    249
Lodging.....................................  Dormitory/fraternity/.........     45     48     47     48       32       49     44     45     41     46     50     43     59     54     65     92
                                              sorority......................
Lodging.....................................  Hotel.........................     56     57     54     52       48       55     53     43     44     44     44     43     48     48     49     58
Lodging.....................................  Motel or inn..................     62     59     59     52       49       57     51     41     42     41     41     39     44     43     44     53
Lodging.....................................  Nursing home/assisted living..     92     93     91     86       72       90     80     72     70     71     75     67     84     79     87    117
Lodging.....................................  Other lodging.................     59     56     56     49       47       54     49     39     40     39     39     37     42     41     42     51
Mercantile..................................  Enclosed mall.................     63     63     62     60       45       61     53     53     50     51     60     52     71     66     77    111
Mercantile..................................  Strip shopping mall...........     66     66     65     63       47       64     56     56     52     54     63     54     74     69     81    117
Office......................................  Administrative/profess. office     44     45     44     42       34       43     36     36     33     34     37     32     42     39     44     63
Office......................................  Bank/other financial..........     62     64     62     60       48       62     52     51     48     49     52     46     60     55     63     89
Office......................................  Government office.............     55     56     55     52       42       54     46     45     42     43     46     40     53     48     55     78
Office......................................  Medical office (non-               37     38     37     36       29       37     31     30     29     29     31     28     36     33     38     53
                                               diagnostic).
Office......................................  Mixed-use office..............     51     52     51     49       39       50     42     41     39     40     43     38     49     45     51     72
Office......................................  Other office..................     42     44     43     41       33       42     35     35     32     33     36     31     41     37     43     60
Outpatient Health Care......................  Clinic/other outpatient health     56     54     55     49       46       54     44     37     39     36     35     35     37     37     35     40
Outpatient Health Care......................  Medical office (diagnostic)...     37     36     36     32       31       36     29     25     26     24     23     23     25     25     23     27
Public Assembly.............................  Entertainment/culture.........     25     26     25     24       20       25     22     20     19     20     21     19     23     22     24     32
Public Assembly.............................  Library.......................     67     68     66     62       53       65     58     53     51     51     54     49     61     58     64     86
Public Assembly.............................  Other public assembly.........     31     31     30     29       24       30     27     24     23     24     25     23     28     27     29     39
Public Assembly.............................  Recreation....................     29     29     29     27       23       28     25     23     22     22     23     21     26     25     27     37
Public Assembly.............................  Social/meeting................     30     31     30     28       24       29     26     24     23     23     24     22     28     26     29     38
Public Order & Safety.......................  Fire station/police station...     72     73     71     67       56       70     62     56     54     55     58     53     66     62     68     92
Public Order & Safety.......................  Other public order and safety.     65     66     65     61       51       64     57     51     50     50     53     48     60     56     62     83
Religious Worship...........................  Religious worship.............     26     26     25     24       20       25     22     20     19     20     21     19     23     22     24     33
Retail (except malls).......................  Other retail..................     55     56     55     53       39       53     46     47     44     44     52     45     61     57     66     96
Retail (except malls).......................  Retail store..................     31     32     31     30       22       31     26     27     25     25     30     26     35     32     38     55

[[Page 61729]]

 
Retail (except malls).......................  Vehicle dealership showroom...     55     56     55     53       39       54     46     47     44     44     52     45     62     57     66     96
Service.....................................  Other service.................     66     67     65     61       51       64     55     52     49     50     54     51     59     55     63     81
Service.....................................  Post office/postal center.....     47     47     46     43       37       46     40     37     35     36     38     34     43     40     44     60
Service.....................................  Repair shop...................     31     31     31     29       24       30     26     25     23     23     25     24     28     26     30     38
Service.....................................  Vehicle service/repair shop...     36     36     36     34       28       35     30     28     27     27     29     28     33     30     34     44
Service.....................................  Vehicle storage/maintenance...     16     16     15     15       12       15     13     12     12     12     13     12     14     13     15     19
Warehouse...................................  Distribution/shipping center..     14     18     18     20       11       20     15     21     19     18     27     25     38     32     46     84
Warehouse...................................  Non-refrigerated warehouse....      7      8      9     10        5       10      7     10      9      9     13     12     18     15     22     41
Warehouse...................................  Refrigerated warehouse........     76     78     79     70       63       78     62     58     61     61     58     53     64     69     70     96
Residential.................................  Multi-family high-rise             37     36     30     32       18       31     22     32     29     32     35     30     40     36     42     56
                                               residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


     Table 3--FY2020-FY2024 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
                                                                                      Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building type.................                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Education...................................  College/university............     40     39     39     36       26       37     32     32     29     31     34     29     41     36     43     65
Education...................................  Elementary/middle school......     24     24     23     22       18       22     20     18     17     17     19     16     21     19     21     32
Education...................................  High school...................     29     29     28     26       19       27     23     24     21     23     25     21     30     27     32     47
Education...................................  Other classroom education.....     16     16     16     15       11       15     13     13     12     13     14     12     17     15     18     26
Education...................................  Preschool/daycare.............     31     31     30     28       23       29     26     24     22     23     24     21     27     25     28     41
Food Sales..................................  Convenience store.............     86     95     92     87       39       95     84     73     77     81     74     68     80     89     88    115
Food Sales..................................  Convenience store with gas....     70     77     74     70       64       76     68     59     62     65     59     55     65     72     71     93
Food Sales..................................  Grocery store/food market.....     72     80     77     73       66       79     70     61     64     67     61     57     67     74     74     96
Food Sales..................................  Other food sales..............     22     24     23     22       20       24     21     18     19     20     19     17     20     22     22     29
Food Service................................  Fast food.....................    168    175    179    159      148      181    150    135    144    146    137    127    151    166    167    218
Food Service................................  Other food service............     50     52     52     47       43       53     45     40     42     44     40     37     44     49     49     54
Food Service................................  Restaurant/cafeteria..........     91     95     96     86       79       97     81     73     78     80     74     69     81     90     90    117
Inpatient Health Care.......................  Hospital/inpatient health.....     91     94     95     81       83       94     77     63     66     69     57     53     59     65     61     73
Laboratory..................................  Laboratory....................    112    113    110    104       88      109     97     87     84     86     90     82    102     96    106    142
Lodging.....................................  Dormitory/fraternity/sorority.     26     27     27     27       19       28     25     26     23     26     29     24     34     31     37     52
Lodging.....................................  Hotel.........................     32     33     31     30       27       31     30     25     25     25     25     24     28     28     28     33
Lodging.....................................  Motel or inn..................     36     34     34     29       28       32     29     23     24     23     23     22     25     25     25     30
Lodging.....................................  Nursing home/assisted living..     53     53     52     49       41       51     46     41     40     40     43     39     48     45     50     67
Lodging.....................................  Other lodging.................     34     32     32     28       27       31     28     22     23     22     22     21     24     23     24     29
Mercantile..................................  Enclosed mall.................     36     36     35     34       26       35     30     31     29     29     34     30     41     37     44     63
Mercantile..................................  Strip shopping mall...........     38     38     37     36       27       36     32     32     30     31     36     31     43     39     46     67
Office......................................  Administrative/profess. office     25     26     25     24       19       25     21     20     19     20     21     19     24     22     25     36
Office......................................  Bank/other financial..........     35     37     36     34       27       35     30     29     27     28     30     26     34     31     36     51
Office......................................  Government office.............     31     32     31     30       24       31     26     26     24     24     26     23     30     28     32     45
Office......................................  Medical office (non-               21     22     21     20       16       21     18     17     16     17     18     16     21     19     21     30
                                               diagnostic).
Office......................................  Mixed-use office..............     29     30     29     28       22       29     24     24     22     23     24     21     28     26     29     41
Office......................................  Other office..................     24     25     24     23       19       24     20     20     18     19     20     18     23     21     24     35
Outpatient Health Care......................  Clinic/other outpatient health     32     31     31     28       26       31     25     21     22     20     20     20     21     21     20     23
Outpatient Health Care......................  Medical office (diagnostic)...     21     21     21     19       18       21     17     14     15     14     13     13     14     14     13     15

[[Page 61730]]

 
Public Assembly.............................  Entertainment/culture.........     15     15     14     14       11       14     13     11     11     11     12     11     13     13     14     19
Public Assembly.............................  Library.......................     38     39     38     36       30       37     33     30     29     29     31     28     35     33     36     49
Public Assembly.............................  Other public assembly.........     18     18     17     16       14       17     15     14     13     14     14     13     16     15     17     23
Public Assembly.............................  Recreation....................     17     17     16     15       13       16     14     13     13     13     13     12     15     14     16     21
Public Assembly.............................  Social/meeting................     17     17     17     16       14       17     15     13     13     13     14     13     16     15     16     22
Public Order & Safety.......................  Fire station/police station...     41     41     40     38       32       40     36     32     31     32     33     30     38     35     39     52
Public Order & Safety.......................  Other public order and safety.     37     38     37     35       29       36     32     29     28     29     30     27     34     32     35     48
Religious Worship...........................  Religious worship.............     15     15     14     14       12       14     13     11     11     11     12     11     13     13     14     19
Retail (except malls).......................  Other retail..................     31     32     31     30       22       30     26     27     25     25     30     26     35     32     38     55
Retail (except malls).......................  Retail store..................     18     18     18     17       14       17     15     15     14     14     17     15     20     19     22     31
Retail (except malls).......................  Vehicle dealership showroom...     31     32     31     30       22       31     26     27     25     25     30     26     35     32     38     55
Service.....................................  Other service.................     38     38     37     35       29       37     32     30     28     28     31     29     34     31     36     46
Service.....................................  Post office/postal center.....     27     27     26     25       21       26     23     21     20     20     22     20     24     23     25     34
Service.....................................  Repair shop...................     18     18     18     17       14       17     15     14     13     13     14     14     16     15     17     22
Service.....................................  Vehicle service/repair shop...     21     21     20     19       16       20     17     16     15     16     17     16     19     17     20     25
Service.....................................  Vehicle storage/maintenance...      9      9      9      8        7        9      8      7      7      7      7      7      8      7      9     11
Warehouse...................................  Distribution/shipping center..      8     10     11     12        6       11      9     12     11     10     16     14     22     18     26     48
Warehouse...................................  Non-refrigerated warehouse....      4      5      5      6        3        6      4      6      5      5      8      7     11      9     13     23
Warehouse...................................  Refrigerated warehouse........     43     45     45     40       36       45     36     33     35     35     33     30     36     39     40     55
Residential.................................  Multi-family high-rise             21     20     17     18       11       18     12     18     16     18     20     17     23     21     24     32
                                               residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


     Table 4--FY2025-FY2029 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Commercial Buildings and Multi-Family High-Rise
                                                                                      Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building type.................                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Education...................................  College/university............     20     20     19     18       13       19     16     16     15     16     17     14     20     18     22     32
Education...................................  Elementary/middle school......     12     12     12     11        9       11     10      9      9      9      9      8     10     10     11     16
Education...................................  High school...................     14     14     14     13       10       14     12     12     11     11     13     11     15     13     16     24
Education...................................  Other classroom education.....      8      8      8      7        5        8      6      7      6      6      7      6      8      7      9     13
Education...................................  Preschool/daycare.............     16     15     15     14       12       14     13     12     11     11     12     11     13     12     14     20
Food Sales..................................  Convenience store.............     43     48     46     44       40       47     42     36     38     40     37     34     40     44     44     58
Food Sales..................................  Convenience store with gas....     35     38     37     35       32       38     34     29     31     32     30     27     32     36     36     46
Food Sales..................................  Grocery store/food market.....     36     40     38     36       33       39     35     30     32     34     31     28     33     37     37     48
Food Sales..................................  Other food sales..............     11     12     12     11       10       12     11      9     10     10      9      9     10     11     11     15
Food Service................................  Fast food.....................     84     88     89     80       74       90     75     67     72     73     68     63     75     83     83    109
Food Service................................  Other food service............     25     26     26     24       21       27     22     20     21     22     20     19     22     25     25     32
Food Service................................  Restaurant/cafeteria..........     45     48     48     43       39       49     41     36     39     40     37     34     41     45     45     59
Inpatient Health Care.......................  Hospital/inpatient health.....     45     47     48     41       42       47     39     32     33     35     29     27     29     32     30     36
Laboratory..................................  Laboratory....................     56     56     55     52       44       54     48     44     42     43     45     41     51     48     53     71
Lodging.....................................  Dormitory/fraternity/sorority.     13     14     14     14        9       14     13     13     12     13     14     12     17     16     19     26
Lodging.....................................  Hotel.........................     16     16     15     15       14       16     15     12     13     13     13     12     14     14     14     17
Lodging.....................................  Motel or inn..................     18     17     17     15       14       16     15     12     12     12     12     11     13     12     12     15
Lodging.....................................  Nursing home/assisted living..     26     27     26     24       21       26     23     21     20     20     21     19     24     23     25     34
Lodging.....................................  Other lodging.................     17     16     16     14       13       15     14     11     12     11     11     11     12     12     12     14

[[Page 61731]]

 
Mercantile..................................  Enclosed mall.................     18     18     18     17       13       17     15     15     14     15     17     15     20     19     22     32
Mercantile..................................  Strip shopping mall...........     19     19     18     18       13       18     16     16     15     15     18     16     21     20     23     33
Office......................................  Administrative/profess. office     12     13     13     12       10       12     10     10     10     10     11      9     12     11     13     18
Office......................................  Bank/other financial..........     18     18     18     17       14       18     15     15     14     14     15     13     17     16     18     25
Office......................................  Government office.............     16     16     16     15       12       16     13     13     12     12     13     12     15     14     16     22
Office......................................  Medical office (non-               11     11     11     10        8       11      9      9      8      8      9      8     10      9     11     15
                                               diagnostic).
Office......................................  Mixed-use office..............     14     15     15     14       11       14     12     12     11     11     12     11     14     13     15     21
Office......................................  Other office..................     12     12     12     12        9       12     10     10      9      9     10      9     12     11     12     17
Outpatient Health Care......................  Clinic/other outpatient health     16     15     16     14       13       15     13     11     11     10     10     10     11     11     10     12
Outpatient Health Care......................  Medical office (diagnostic)...     11     10     10      9        9       10      8      7      7      7      7      7      7      7      7      8
Public Assembly.............................  Entertainment/culture.........      7      7      7      7        6        7      6      6      5      6      6      5      7      6      7      9
Public Assembly.............................  Library.......................     19     19     19     18       15       19     17     15     15     15     16     14     18     17     18     24
Public Assembly.............................  Other public assembly.........      9      9      9      8        7        9      8      7      7      7      7      6      8      8      8     11
Public Assembly.............................  Recreation....................      8      8      8      8        6        8      7      6      6      6      7      6      8      7      8     11
Public Assembly.............................  Social/meeting................      9      9      8      8        7        8      7      7      7      7      7      6      8      7      8     11
Public Order & Safety.......................  Fire station/police station...     21     21     20     19       16       20     18     16     16     16     17     15     19     18     19     26
Public Order & Safety.......................  Other public order and safety.     19     19     18     17       15       18     16     15     14     14     15     14     17     16     18     24
Religious Worship...........................  Religious worship.............      7      7      7      7        6        7      6      6      6      6      6      5      7      6      7      9
Retail (except malls).......................  Other retail..................     16     16     16     15       11       15     13     13     12     13     15     13     18     16     19     27
Retail (except malls).......................  Retail store..................      9      9      9      9        6        9      8      8      7      7      8      7     10      9     11     16
Retail (except malls).......................  Vehicle dealership showroom...     16     16     16     15       11       15     13     13     13     13     15     13     18     16     19     27
Service.....................................  Other service.................     19     19     19     18       14       18     16     15     14     14     15     15     17     16     18     23
Service.....................................  Post office/postal center.....     13     13     13     12       10       13     12     10     10     10     11     10     12     12     13     17
Service.....................................  Repair shop...................      9      9      9      8        7        9      7      7      7      7      7      7      8      7      8     11
Service.....................................  Vehicle service/repair shop...     10     10     10     10        8       10      9      8      8      8      8      8      9      9     10     13
Service.....................................  Vehicle storage/maintenance...      4      5      4      4        3        4      4      4      3      3      4      3      4      4      4      6
Warehouse...................................  Distribution/shipping center..      4      5      5      6        3        6      4      6      5      5      8      7     11      9     13     24
Warehouse...................................  Non-refrigerated warehouse....      2      2      3      3        1        3      2      3      3      3      4      3      5      4      6     12
Warehouse...................................  Refrigerated warehouse........     22     22     23     20       18       22     18     17     17     18     16     15     18     20     20     27
Residential.................................  Multi-family high-rise             11     10      9      9        5        9      6      9      8      9     10      9     11     10     12     16
                                               residential.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PART 435--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND 
CONSTRUCTION OF NEW FEDERAL LOW-RISE RESIDENTIAL BUILDINGS

0
7. The authority citation for part 435 continues to read as follows:

    Authority: 42 U.S.C. 6831-6832; 6834-6836; 42 U.S.C. 8253-54; 42 
U.S.C. 7101 et seq.

0
8. In Sec.  435.1, paragraph (b) is added to read as follows:


Sec.  435.1  Purpose and scope.

* * * * *
    (b) This part also establishes a maximum allowable fossil fuel-
generated energy consumption standard for new Federal buildings that 
are low-rise residential buildings and major renovations to Federal 
buildings that are low-rise residential buildings, for which design for 
construction began on or after October 14, 2015.
0
9. In Sec.  435.2:
0
a. Add in alphabetical order, the definitions of ``Combined heat and 
power (CHP) system,'' ``Construction cost,'' ``District energy 
system,'' ``Fiscal year (FY),'' ``Major renovation,'' ``Power purchase 
agreement,'' and ``Renewable energy certificate'';
0
b. Revise the definitions of ``New Federal building'' and ``Proposed 
building''; and
0
c. Remove the definitions of ``Life-cycle cost'' and ``Life-cycle cost-
effective''.
    The additions and revisions read as follows:


Sec.  435.2  Definitions.

* * * * *
    Combined heat and power (CHP) system means an integrated system, 
located at or near a building or facility, that is used to generate 
both heat and electricity for use in the building or facility.

[[Page 61732]]

    Construction cost means all costs associated with design and 
construction of a building. It includes the cost of design, permitting, 
construction (materials and labor), and building commissioning. It does 
not include legal or administrative fees, or the cost of acquiring the 
land.
* * * * *
    District energy system means a central energy conversion plant and 
transmission and distribution system that provides thermal energy to a 
group of buildings (heating via hot water or steam, and/or cooling via 
chilled water). This definition only includes thermal energy systems; 
central energy supply systems that only provide electricity are 
excluded from this definition.
* * * * *
    Fiscal Year (FY) begins on October 1 of the year prior to the 
specified calendar year and ends on September 30 of the specified 
calendar year
* * * * *
    Major renovation means changes to a building that provide 
significant opportunities for compliance with applicable requirements 
in this part. For subpart B --reduction in fossil fuel-related energy 
consumption, for example, replacement of the HVAC system, lighting 
system, building envelope, or other components of the building that 
have a major impact on energy usage would constitute a major 
renovation.
    New Federal building means any new building (including a complete 
replacement of an existing building from the foundation up) to be 
constructed by, or for the use of, any Federal agency. Such term shall 
include buildings built for the purpose of being leased by a Federal 
agency, and privatized military housing.
    Power purchase agreement means an agreement with an electricity 
producer for all or a specified portion of the electricity produced 
from a particular power source, in this case a renewable energy source, 
for a specified period of time.
    Proposed building means the design for construction of a new 
Federal low-rise residential building, or major renovation to a Federal 
low-rise residential building, proposed for construction.
    Renewable energy certificate means the technology and environmental 
(non-energy) attributes that represent proof that 1 megawatt-hour (MWh) 
of electricity was generated from a renewable energy resource, and can 
be sold separately from the underlying generic electricity with which 
it is associated.


Sec.  435.3  [Amended]

0
10. Amend Sec.  435.3 by adding to the end of paragraph (b)(2) ``, 
435.201, Appendix A to Subpart B''.
0
11. Revise Sec.  435.4 to read as follows:


Sec.  435.4  Life-cycle cost-effective.

    Except as specified in subparts A, B or C of this part, Federal 
agencies shall determine life-cycle cost-effectiveness by using the 
procedures set out in subpart A of part 436. A Federal agency may 
choose to use any of four methods, including life-cycle cost, net 
savings, savings-to-investment ratio, and adjusted internal rate of 
return using the discount rate published in the annual supplement to 
the Life Cycle Costing Manual for the Federal Energy Management Program 
(NIST 85-3273).
0
12. Subpart B is added to part 435 to read as follows:
Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption
Sec.
435.200 Fossil fuel-generated energy consumption requirement.
435.201 Fossil fuel-generated energy consumption determination.
435.202 Petition for downward adjustment.

Appendix A to Subpart B of Part 435--Maximum Allowable Fossil Fuel-
Generated Energy Consumption

Subpart B--Reduction in Fossil Fuel-Generated Energy Consumption


Sec.  435.200  Fossil fuel-generated energy consumption requirement.

    (a) New Federal buildings. New Federal buildings that are low-rise 
residential buildings, for which design for construction began on or 
after October 14, 2015, must be designed to meet the requirements of 
paragraph (c) of this section if the cost of the building is at least 
$2,500,000 (in 2007 dollars, adjusted for inflation).
    (b) Major renovations. (1) Major renovations to Federal buildings 
that are low-rise residential buildings, for which design for 
construction began on or after October 14, 2015, must be designed to 
meet the requirements of paragraph (c) of this section if the cost of 
the major renovation is at least $2,500,000 (in 2007 dollars, adjusted 
for inflation).
    (2) This subpart applies only to the portions of the proposed 
building or proposed building systems that are being renovated and to 
the extent that the scope of the renovation permits compliance with the 
applicable requirements in this subpart. Unaltered portions of the 
proposed building or proposed building systems are not required to 
comply with this subpart.
    (3) For leased buildings, this subpart applies to major renovations 
only if the proposed building was originally built for the use of any 
Federal agency, including being leased by a Federal agency.
    (c) Federal buildings that are of the type included in Appendix A 
of this subpart--(1) Design for construction began during fiscal year 
2014 through fiscal year 2029. The fossil fuel-generated energy 
consumption of the proposed building, based on the building design and 
calculated according to Sec.  435.201(a), must not exceed the value 
identified in Tables 1-4 of Appendix A of this subpart for the 
associated building type, climate zone, and fiscal year in which design 
for construction began.
    (2) Design for construction began during or after fiscal year 2030. 
The fossil fuel-generated energy consumption of the proposed building, 
based on building design and calculated according to Sec.  435.201(a), 
must be zero.


Sec.  435.201  Fossil fuel-generated energy consumption determination.

    (a) The fossil fuel-generated energy consumption of a proposed 
design is calculated as follows:

Equation 1: Fossil Fuel-Generated Energy Consumption = ((3.412 kBtu/kwh 
x Fossil Fuel-Generation Factor x (Proposed Building Site Electricity 
Consumption - Renewable Energy and CHP Electricity Deduction)/
Electricity Source Energy Factor) + (Direct Fossil Fuel Consumption of 
Proposed Building x Other Fuels Source Energy Multiplier))/Floor Area


Whereas:

(1) Fossil Fuel-Generation Factor is equal to (AEPcoal + 
AEPpl + AEPpc + AEPng + 
AEPog)/Total AEP

Where

AEP = annual electrical production
pl = petroleum liquids
pc = petroleum coke
ng = natural gas
og = other gas

    All values are taken from Table 3.2.A of the EIA Electric Power 
Annual Report, which is updated on a periodic basis. DOE will on an 
annual basis calculate the Fossil Fuel Generation Factor and publish 
the result at the following web address: https://energy.gov/eere/femp/federal-energy-management-program
    (2) Proposed Building Site Electricity Consumption equals the 
estimated site electricity consumption of the proposed building 
calculated in accordance with the Simulated Performance Alternative in 
Section 405 of the IECC 2009 (incorporated by reference; see Sec.  
435.3), measured in kilowatt hours per year (kWh/yr).

[[Page 61733]]

    (3) Renewable Energy and CHP Electricity Deduction equals the total 
contribution specified in paragraph (b) of this section, measured in 
kilowatt hours per year (kWh/yr).
    (4) Electricity Source Energy Factor For electricity purchased from 
the grid, the Electricity Source Factor is equal to 0.316. For on-site 
electrical generation, it is the estimated efficiency of the generating 
equipment and any estimated distribution losses that may occur.
    (5) Direct Fossil Fuel Consumption of Proposed Building equals the 
total site fossil fuel consumption of the proposed building calculated 
in accordance with the Simulated Performance Alternative in Section 405 
of the IECC 2009 (incorporated by reference; see Sec.  435.3), 
excluding fossil fuel consumption for electricity generation, and 
measured in thousands of British thermal units per year per (kBtu/yr). 
This includes any fossil fuel consumption attributable to non-electric 
power (e.g., heat or steam) used in a proposed building that is 
supplied by a district energy system or CHP system.
    (6) Other Fuels Source Energy Multiplier For purposes of Equation 
1, the multipliers are as follows:

Natural gas 1.046
Fuel oil 1.00
Propane 1.00
District Steam (non-CHP) 1.35
District steam (CHP) 2.30
District hot water 1.28
Chilled water 1.05
Coal 1.00

    (7) Floor Area is the floor area of the structure that is enclosed 
by exterior walls, including finished or unfinished basements, finished 
or heated space in attics, and garages if they have an uninsulated wall 
in common with the house. Not included are crawl spaces, and sheds and 
other buildings that are not attached to the house.
    (b) Renewable energy and CHP electricity deductions--(1) Renewable 
electricity. The following renewable electricity generation qualifies 
as a deduction under paragraph (a) of this section to the extent that 
the renewable electricity generation represents new electric generating 
capacity or a new renewable energy obligation on the part of the 
agency, and not a reassignment of existing capacity or obligations:
    (i) On-site renewable electricity generation is the amount of 
electricity measured in kilowatt hours per year (kWh/yr) to be consumed 
by the building that is contributed by renewable electricity generated 
at the Federal site or facility on which the building will be located. 
The environmental attributes of the on-site renewable electricity 
generation must not be transferred.
    (ii) Off-site renewable electricity generation is the amount of 
renewable electricity measured in kilowatt hours per year (kWh/yr) 
generated at a site or facility, either Federal or non-federal, other 
than the Federal site or facility on which the building will be 
located, and may include renewable energy produced under a Power 
Purchase Agreement and represented by Renewable Energy Certificates.
    (2) Limitation on the use of renewable electricity generation for 
new Federal buildings and major renovations. The environmental 
attributes of the renewable energy generation must not be transferred. 
The agency must ensure that the environmental attributes of onsite 
renewable energy generation are dedicated to meeting the fossil fuel-
generated energy consumption reduction requirements of the proposed 
building.
    (3) CHP deduction. Electricity associated with non-electric power 
provided to a proposed building by a district energy system that is a 
CHP system or an on-site CHP system qualifies as a deduction under 
paragraph (a) and is equal to the total heat delivered to the proposed 
building from the direct energy system divided by total heat produced 
by the CHP system, times the total electricity produced by the CHP 
system.


Sec.  435.202  Petition for downward adjustment.

    (a) New Federal buildings. (1) Upon petition by a Federal agency, 
excluding the General Services Administration (GSA) but including GSA-
tenant agencies with significant control over building design, the 
Director of the Federal Energy Management Program may adjust the 
applicable maximum allowable fossil fuel-generated energy consumption 
standard with respect to a specific building, upon written 
certification from the head of the agency designing the building, or 
the head of a GSA-tenant agency, that the requested adjustment is the 
largest feasible reduction in fossil fuel-generated consumption that 
can practicably be achieved in light of the specified functional needs 
for that building, as demonstrated by:
    (i) A statement sealed by the design engineer that the proposed 
building was designed in accordance with the applicable energy 
efficiency requirement in subpart A of this Part, and that each energy 
consuming product included in the proposed building that is of a 
product category covered by the ENERGY STAR program or the Federal 
Energy Management Program for designated products is an ENERGY STAR 
product or a product meeting the FEMP designation criteria, as 
applicable;
    (ii) A description of the technologies and practices that were 
evaluated and rejected, including a justification of why they were not 
included in the design for construction; and
    (iii) Any other information the agency determines would help 
explain its request;
    (2) The head of the agency designing the building, or the head of a 
GSA-tenant agency, must also include the following information in the 
petition:
    (i) A general description of the building, including but not 
limited to location, use type, floor area, stories, and functional 
needs;
    (ii) The maximum allowable fossil fuel-generated energy consumption 
for the building from Tables 1-4 of Appendix A of this subpart;
    (iii) The estimated fossil fuel-generated energy consumption of the 
proposed building;
    (iv) A description of the proposed building's energy-related 
features, including but not limited to:
    (A) Building envelope, including, but not limited to, construction 
materials, insulation levels, and the type, area, heat loss and solar 
heat gain and visible light transmission coefficients of windows and 
other glazing;
    (B) HVAC system type and configuration;
    (C) HVAC equipment sizes and efficiencies;
    (D) Ventilation systems (including outdoor air volume, controls 
technique, heat recovery systems, and economizers, if applicable);
    (E) Service water heating system configuration and equipment 
(including solar hot water, wastewater heat recovery, and controls for 
circulating hot water systems, if applicable);
    (F) Lighting technology, interior lighting power, and lighting 
control techniques;
    (G) Estimated process and plug loads; and
    (H) Any other energy-related equipment; and
    (3) The Director of the Federal Energy Management Program may 
concur in whole or in part with a petition. Upon concurring in part, 
the Director of the Federal Energy Management Program will establish an 
applicable maximum allowable fossil fuel-generated energy consumption 
standard with respect to a specific building other than the value put 
forth in the petition.
    (4) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to:


[[Page 61734]]


U.S. Department of Energy, Federal Energy Management Program, Director, 
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000 
Independence Ave. SW., Washington, DC 20585-0121.

    (5) The Director will notify the requesting agency in writing 
whether the petition for downward adjustment to the numeric reduction 
requirement is approved, in whole or in part, or rejected, within 90 
days of submittal. If the Director rejects -the petition or establishes 
a value other than that presented in the petition, the Director will 
forward its reasons for rejection to the petitioning agency.
    (b) Major renovations to Federal buildings--(1) Major renovation of 
the whole building. Upon petition by a Federal agency, excluding the 
General Services Administration (GSA) but including GSA-tenant agencies 
with significant control over renovation design, the Director of the 
Federal Energy Management Program will adjust the applicable maximum 
allowable fossil fuel-generated energy consumption standard with 
respect to a specific major renovation of a whole building, upon 
written certification from the head of the agency designing the 
building, or the head of a GSA-tenant agency, that the requested 
adjustment is the largest feasible reduction in fossil fuel-generated 
consumption that can practicably be achieved in light of the specified 
functional needs for that building, as demonstrated by a statement 
stamped by the design engineer that the proposed building was designed 
consistent with the energy efficiency requirement in subpart A of this 
Part that corresponds to the date of the proposed building.
    (2) Major renovation of a building system or component. Upon 
petition by a Federal agency, excluding the General Services 
Administration (GSA) but including GSA-tenant agencies with significant 
control over renovation design, the Director of the Federal Energy 
Management Program will adjust the applicable maximum allowable fossil 
fuel-generated energy consumption standard with respect to a specific 
major renovation limited to a building system or component, upon 
written certification from the head of the agency designing the 
building, or the head of a GSA-tenant agency, that the requested 
adjustment is the largest feasible reduction in fossil fuel-generated 
consumption that can practicably be achieved in light of the specified 
functional needs for that building, as demonstrated by a statement 
stamped by the design engineer that the proposed building incorporates 
commercially available systems and/or components that provide a level 
of energy efficiency that is life-cycle cost effective.
    (3) Petitions for downward adjustment should be submitted to ff-petition@ee.doe.gov, or to:

U.S. Department of Energy, Federal Energy Management Program, Director, 
Fossil Fuel Reductions in New Federal Buildings, EE-2L, 1000 
Independence Ave. SW., Washington, DC 20585-0121.

    (4) The downward adjustment for a major renovation will be deemed 
approved upon submittal of the certification required in paragraphs 
(b)(1) or (2) of this section, as applicable.

Appendix A to Subpart B of Part 435--Maximum Allowable Fossil Fuel-
Generated Energy Consumption

    (a) For purposes of the tables in this Appendix, the climate 
zones for each county in the United States are those listed in 
Figure 301.1 of IECC 2009 (incorporated by reference; see Sec.  
435.3).
    (b) For purpose of Appendix A, the following definitions apply:
    Manufactured Home means a dwelling unit built to the Federal 
Manufactured Home Construction and Safety Standards in 24 CFR part 
3280, that is built on a permanent chassis and moved to a site. It 
may be placed on a permanent or temporary foundation and may contain 
one or more rooms.
    Multi-Family in 2-4 Unit Buildings means a category of 
structures that is divided into living quarters for two, three, or 
four families or households in which one household lives above or 
beside another. This category also includes houses originally 
intended for occupancy by one family (or for some other use) that 
have since been converted to separate dwellings for two to four 
families.
    Multi-Family in 5 or More Unit Buildings means a category of 
structures that contain living quarters for five or more households 
or families and in which one household lives above or beside 
another.
    Single-Family Attached means a building with two or more 
connected dwelling units, generally with a shared wall, each 
providing living space for one household or family. Attached houses 
are considered single-family houses as long as they are not divided 
into more than one dwelling unit and they have independent outside 
entrances. A single-family house is contained within walls extending 
from the basement (or the ground floor, if there is no basement) to 
the roof. Townhouses, row houses, and duplexes are considered 
single-family attached dwelling units, as long as there is no 
dwelling unit above or below another. This includes modular homes 
but does not include manufactured homes.
    Single-Family Detached means a separate, unconnected dwelling 
unit, not sharing a wall with any other building or dwelling unit, 
which provides living space for one household or family. A single-
family house is contained within walls extending from the basement 
(or the ground floor, if there is no basement) to the roof. This 
includes modular homes but does not include manufactured homes.

                  Table 1--FY2013-FY2014 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building activity/type........                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Residential.................................  Mobile/manufactured home......     56     54     46     48       28       47     33     48     43     49     53     45     61     54     64     84
Residential.................................  Single-family detached........     42     40     34     36       21       35     24     36     32     36     39     33     45     40     47     62
Residential.................................  Single-family attached........     48     46     39     41       24       40     28     41     37     41     45     38     52     46     55     72
Residential.................................  Multi-family (in 2-4 unit          70     68     57     60       35       59     41     60     54     61     66     56     76     68     80    105
                                               building).
Residential.................................  Multi-family (in 5+ unit           48     46     39     41       24       40     28     41     37     41     45     38     52     46     55     72
                                               building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 61735]]


                  Table 2--FY2014-FY2019 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone:            1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building activity/type........                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Residential.................................  Mobile/manufactured home......     44     42     35     37       22       36     25     37     34     38     41     35     47     42     50     65
Residential.................................  Single-family detached........     32     31     26     28       16       27     19     28     25     28     30     26     35     31     37     49
Residential.................................  Single-family attached........     37     36     30     32       18       31     22     32     29     32     35     30     40     36     42     56
Residential.................................  Multi-family (in 2-4 unit          55     53     44     47       27       46     32     47     42     47     51     44     59     53     62     82
                                               building).
Residential.................................  Multi-family (in 5+ unit           37     36     30     32       18       31     22     32     29     32     35     30     40     36     42     56
                                               building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                  Table 3--FY2020-FY2024 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building activity/type........                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Residential.................................  Mobile/manufactured home......     25     24     20     21       12       21     15     21     19     22     23     20     27     24     28     37
Residential.................................  Single-family detached........     18     18     15     16        9       15     11     16     14     16     17     15     20     18     21     28
Residential.................................  Single-family attached........     21     21     17     18       11       18     12     18     16     18     20     17     23     21     24     32
Residential.................................  Multi-family (in 2-4 unit          31     30     25     27       15       26     18     27     24     27     29     25     34     30     36     47
                                               building).
Residential.................................  Multi-family (in 5+ unit           21     20     17     18       11       18     12     18     16     18     20     17     23     21     24     32
                                               building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                  Table 4--FY2024-FY2029 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
                                                                                      [Source kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             3B       3B
              Building category                        Climate zone             1      2A     2B     3A    coast    other     3C     4A     4B     4C     5A     5B     6A     6B     7      8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              Building activity/type........                                      Fossil fuel-generated energy use intensity
                                             ---------------------------------------------------------------------------------------------------------------------------------------------------
Residential.................................  Mobile/manufactured home......     12     12     10     11        6       10      7     11     10     11     12     10     13     12     14     19
Residential.................................  Single-family detached........      9      9      8      8        5        8      5      8      7      8      9      7     10      9     11     14
Residential.................................  Single-family attached........     11     10      9      9        5        9      6      9      8      9     10      9     12     10     12     16
Residential.................................  Multi-family (in 2-4 unit          16     15     13     13        8       13      9     13     12     14     15     13     17     15     18     23
                                               building).
Residential.................................  Multi-family (in 5+ unit           11     10      9      9        5        9      6      9      8      9     10      9     11     10     12     16
                                               building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2014-24151 Filed 10-10-14; 8:45 am]
BILLING CODE 6450-01-P
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