Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings, 78382-78436 [2022-27098]
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78382
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Proposed Rules
DEPARTMENT OF ENERGY
10 CFR Parts 433 and 435
[EERE–2010–BT–STD–0031]
RIN 1904–AB96
Clean Energy 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 Department of Energy
(‘‘DOE’’) is publishing a supplemental
notice of proposed rulemaking
(‘‘SNOPR’’) to establish revised energy
performance standards for the
construction of new Federal buildings,
including commercial buildings, multifamily high-rise residential buildings,
and low-rise residential buildings per
the Energy Conservation and Production
Act (‘‘ECPA’’), as amended by the
Energy Independence and Security Act
(‘‘EISA’’) of 2007. This document
presents an updated proposal with a
new focus that accounts for the needs of
Federal agencies and the goals of
President Biden’s Administration and
responds to comments received on prior
notice of proposed rulemaking
(‘‘NOPR’’) and SNOPR documents.
Consistent with the requirements of
ECPA and EISA, this document presents
revised Federal building energy
performance standards that would
require reductions in Federal agencies’
on-site use of fossil fuels (which include
coal, petroleum, natural gas, oil shales,
bitumens, tar sands, and heavy oils)
consistent with the targets of ECPA and
EISA and provides processes by which
agencies can petition DOE for the
downward adjustment of said targets for
buildings.
DATES:
Meeting: DOE will hold a webinar on
Thursday, January 5, 2023, from 1:00
p.m. to 4:00 p.m. See section VI, ‘‘Public
Participation,’’ for webinar registration
information, participant instructions,
and information about the capabilities
available to webinar participants.
Comments: DOE will accept
comments, data, and information
regarding this SNOPR no later than
February 21, 2023. Interested persons
are encouraged to submit comments
using the Federal eRulemaking Portal at
www.regulations.gov, under docket
number EERE–2010–BT–STD–0031.
Follow the instructions for submitting
comments. EERE–2010–BT–STD–0031.
Alternatively, interested persons may
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SUMMARY:
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submit comments, identified by docket
number EERE–2010–BT–STD–0031, by
any of the following methods:
(1) Email: FossilFuelReduct-2010STD-0031@ee.doe.gov. Include the
docket number EERE–2010–BT–STD–
0031 in the subject line of the message.
(2) Postal Mail: Mr. Jeremy Williams,
U.S. Department of Energy, Building
Technologies Program, Mailstop EE–5B,
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. If
possible, please submit all items on a
compact disc (‘‘CD’’), in which case it is
not necessary to include printed copies.
(3) Hand Delivery/Courier: Mr. Jeremy
Williams, 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. If possible, please
submit all items on a CD, in which case
it is not necessary to include printed
copies.
No telefacsimiles (‘‘faxes’’) will be
accepted. For detailed instructions on
submitting comments and additional
information on this process, see section
VI of this document.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Williams, U.S. Department
of Energy, Office of Energy Efficiency
and Renewable Energy, Building
Technologies Office, EE–5B, 1000
Independence Avenue SW, Washington,
DC 20585–0121. Email:
Jeremy.Williams@ee.doe.gov.
Mr. Matthew Ring, U.S. Department of
Energy, Office of the General Counsel,
GC–33, 1000 Independence Avenue SW,
Washington, DC 20585–0121.
Telephone: (202) 586–2555. Email:
Matthew.Ring@hq.doe.gov.
For further information on how to
submit a comment, review other public
comments and the docket, or participate
in the public meeting, contact the
Building Energy Codes Program staff at
BuildingEnergyCodes@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
DOE proposes to incorporate by
reference the following industry
standards:
ANSI/ASHRAE/IES 90.1–2019,
Energy Standard for Buildings Except
Low-Rise Residential Buildings, I–P
Edition, copyright 2019 (‘‘ASHRAE
90.1–2019’’), into part 433.
ASHRAE 90.1–2019 is available from
the American Society of Heating
Refrigerating and Air-Conditioning
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Engineers, Inc., 180 Technology
Parkway NW, Peachtree Corners, GA
30092; (404) 636–8400; www.ashrae.org.
ICC 2021, Redline Version, Copyright
2021, (‘‘IECC 2021’’) into part 435.
IECC 2021 is available from the
International Energy Conservation Code
(IECC), 4051 West Flossmoor Road,
Country Club Hills, IL 60478, 1–888–
422–7233, or go to https://
www.iccsafe.org/.
See section V.M of this document for
a further discussion of these standards.
Table of Contents
I. Introduction
A. Authority
B. Background
C. Coverage of the Regulation
II. Discussion of Proposed Standards
A. Performance Standards for Fossil FuelGenerated Energy Consumption
B. Compliance With Performance
Standards for New Construction and
Major Renovations of a Whole Building
C. Compliance With Performance
Standards for Major Renovations Within
a Building
D. Development of Fossil Fuel-Generated
Energy Consumption Target
E. Petitions for Downward Adjustment
F. Terminology To Be Defined in This
Rulemaking
III. Additional Discussion Including Related
Comments
A. 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 Relevant Comments
B. Establishing and Using the Baseline
1. CBECS and RECS Baselines
2. Climate Adjustment
3. Plug and Process Loads
4. Differentiating Between Fossil Fuels
5. Regional Fossil Fuel Factors
6. Marginal Source of Electricity
7. Residential Common Areas
8. Major Renovations
9. Other Relevant Comments
C. 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. Other Relevant Comments
D. Petitions for Downward Adjustment
1. Technical Impracticability 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
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6. Make Information Publicly Available
7. Narrow the Use of Petitions
8. GSA Tenant Agencies
9. Other Relevant Comments
E. Impacts of the Rule
1. Cost Impacts
2. Other Impacts
F. Guidance and Other Topics
IV. Methodology, Analytical Results, and
Conclusion
A. Cost-Effectiveness
B. Emissions Analysis
1. Air Quality Regulations Incorporated in
DOE’s Analysis
C. Monetization of Emissions Changes
1. Monetization of Greenhouse Gas
Emissions
a. Social Cost of Carbon
b. Social Cost of Methane and Nitrous
Oxide
2. Monetization of Other Emissions
Impacts
D. Conclusion
E. Reference Resources
V. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866
and 13563
B. Review Under the Regulatory Flexibility
Act
C. Review Under the Paperwork Reduction
Act
D. Review Under the National
Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates
Reform Act of 1995
H. Review Under the Treasury and General
Government Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General
Government Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Information Quality
M. Description of Materials Incorporated
by Reference
VI. Public Participation
A. Attendance at the Public Meeting
B. Procedure for Submitting Prepared
General Statements for Distribution
C. Conduct of the Public Meeting
D. Submission of Comments
VII. Approval of the Office of the Secretary
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I. Introduction
The following section briefly
discusses the statutory authority
underlying this proposed rule, as well
as some of the relevant historical
background related to the establishment
of a fossil fuel-generated energy
consumption reduction rule for Federal
buildings.
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 the Department of
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Energy (‘‘DOE’’) to establish regulations
that require fossil fuel-generated energy
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 (‘‘FY’’) 2003 (as measured by
Commercial Buildings Energy
Consumption Survey (‘‘CBECS’’) or
Residential Energy Consumption Survey
(‘‘RECS’’) data from the DOE’s Energy
Information Administration (‘‘EIA’’) by
55 percent beginning in FY2010, 65
percent beginning in FY2015, 80
percent beginning in FY2020, 90
percent beginning in FY2025, and 100
percent beginning in FY2030, also
1 Under 40 U.S.C. 3301(a)(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 Native
American and Native Alaskan 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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shown in the Table I.1. (42 U.S.C.
6834(a)(3)(D)(i)(I))
TABLE I.1—BUILDING PERCENTAGE
REDUCTION REQUIREMENTS BY FISCAL YEAR
Fiscal year
2010
2015
2020
2025
2030
........................................
........................................
........................................
........................................
........................................
Percentage
reduction
55
65
80
90
100
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 the General Services
Administration (‘‘GSA’’). (Id.)
The term ‘‘fossil fuel-generated energy
consumption’’ is not defined in section
433 of EISA 2007. In this SNOPR, DOE
is proposing to apply the term ‘‘fossil
fuel-generated energy consumption,’’ for
purposes of meeting the reduction
targets in EISA section 433, as only
energy consumption from on-site fossil
fuel used by equipment and systems
designed to support building operations
(also referred to as Scope 1 uses). In this
SNOPR, DOE proposes that these initial
standards would not cover certain
process loads, manufacturing/industrial
activities, unique research activities or
back-up emergency generators nor
would the standards cover electricity or
other purchased utility consumption
supplied from the grid and generated
using fossil fuels off-site. However, DOE
may re-examine the scope of this term
and coverage in future updates of these
standards.
B. Background
This SNOPR proposes to amend
certain portions of 10 CFR parts 433 and
435, the regulations governing energy
efficiency in Federal buildings. DOE
previously published a notice of
proposed rulemaking (‘‘NOPR’’) in the
Federal Register on October 15, 2010,
which outlined a proposal to implement
section 433 of EISA. 75 FR 63404. A
public meeting on the NOPR was held
on November 12, 2010, and public
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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
identified additional areas for
clarification and consideration that
would benefit from further public
comment. DOE issued a supplemental
notice of proposed rulemaking (2014
SNOPR) on October 14, 2014. 79 FR
61694. Comments were accepted
through December 15, 2014.4 To ensure
alignment with the decarbonization
goals of the Biden Administration, DOE
is revising its proposal and issuing a
second SNOPR. This revised SNOPR
will take into consideration previous
relevant comments from the 2014
SNOPR as well as considerations of
Administration objectives to reduce
emissions across federal operations, as
appropriate.
In this second SNOPR, DOE makes a
number of changes from the 2014
SNOPR that would 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 of this
document. This second SNOPR:
• Converts the proposed rule from a
kBtu per ft2 accounting of total fossil
fuel use (including both on-site fossil
fuel use and the embedded fossil fuels
in on-site electricity use) to use kBtu per
ft2 of on-site fossil fuel usage or Scope
1 GHG emissions in CO2e (‘‘Carbon
Dioxide Equivalent Gases’’) per ft2.
• Implements a shift multiplier for
Federal buildings that operate on
extended schedules compared to the
private sector buildings sampled in
CBECS. This multiplier will apply
solely to Federal commercial buildings
regulated in 10 CFR part 433 as
residential buildings of all types in both
the private sector and Federal sector are
assumed to be operated 24 hours a day.
• Revises the calculation of fossil fuel
usage for the proposed design to make
it consistent with how DOE tracks fossil
fuel usage and greenhouse gas emissions
in reporting related to EISA 2007
section 432.
• Clarifies applicability of the rule to
EISA-subject major renovations in three
categories—renovations of all Scope 1
fossil fuel-using systems, Scope 1 fossil
fuel-using system level renovations, and
Scope 1 fossil fuel-using component
level renovations.
3 Complete contents of the docket folder may be
found at www.regulations.gov/
#!docketDetail;D=EERE-2010-BT-STD-0031.
4 Id.
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• Clarifies applicability of the rule to
leased facilities, noting that the only
leases subject to this proposed rule are
new leases for buildings built
specifically for the purpose of being
leased to the Federal government.
• Clarifies an approach to determine
required fossil fuel-generated energy
consumption levels for EISA-subject
major renovations that are limited to
system or component level retrofits.
• Clarifies 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, including, for example,
process loads associated with the
charging of electric vehicles and the
fueling of natural gas fueled vehicles.
• Clarifies that renewable fossil fuels
such as biomethane and biopropane
qualify as exemptions from the
calculation of fossil fuel usage.
• Clarifies the definition of Scope 1
fossil fuel-generated energy
consumption as the metric being used
for this rule (only including
consumption for on-site fossil fuel use,
not embedded fossil fuels in on-site
electricity use).
• Clarifies the definition of technical
impracticability for purposes of the
petition process.
• Modifies definitions of major
renovations to reflect focus on Scope 1
fossil fuel-generated energy
consumption and fossil fuel-using
systems as opposed to the whole
building fossil-fuel generated energy
consumption and all building systems.
Over the past few years, DOE has
addressed energy efficiency
requirements for Federal buildings as
mandated in ECPA. DOE published a
final rule updating Federal building
energy efficiency standards for
commercial or multi-family high-rise
residential buildings to ASHRAE
Standard 90.1–2019 on April 7, 2022. 87
FR 20293. DOE also published a final
rule updating Federal building energy
efficiency standards for low-rise
residential buildings to the 2021
International Energy Conservation Code
(‘‘IECC’’) on April 5, 2022. 87 FR 19613.
Prior to that, DOE published a final rule
updating the Federal building energy
efficiency standards for low-rise
residential buildings to the 2015 IECC
on January 10, 2017 (82 FR 2857), and
a final rule updating Federal building
energy efficiency standards for
commercial and multi-family high-rise
residential buildings to ASHRAE
Standard 90.1–2013 on November 6,
2015. 80 FR 65749. DOE also published
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a final rule regarding green building
certification systems for Federal
buildings that applied to Federal
commercial or multi-family high-rise
residential buildings and low-rise
residential buildings on October 14,
2014. 79 FR 61563.
C. Coverage of the Regulation
This SNOPR applies to a defined
subset of new Federal buildings and
major renovations to Federal buildings,
as specified in section 433 of EISA 2007.
(See 42 U.S.C. 6834(a)(3)(D)(i)) 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)).
The subset of Federal buildings for
which this rule will apply fall under
two categories and will be referred
collectively to as ‘‘EISA-subject
buildings.’’ The first qualifying category
of EISA-subject buildings includes any
new Federal buildings or major
renovations to Federal buildings that are
public buildings, as defined in 40 U.S.C.
3301,5 for which transmittal of a
prospectus to Congress is required
under 40 U.S.C. 3307. Under 40 U.S.C.
3307(a)(1), a transmittal of a prospectus
to Congress is required if a total
expenditure in excess of $1,500,000 is
required to construct, alter, or acquire
5 Under 40 U.S.C. 3301(a)(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 Native
American and native Alaskan 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.
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the public building.6 Under 40 U.S.C.
3307(h), the GSA Administrator may
adjust this value annually to account for
construction cost increases. GSA’s
annual prospectus threshold for FY
2022 is $3,375,000.7 GSA also provides
a separate dollar threshold for
alterations in leased public buildings for
which a prospectus is required. In FY
2022, the cost threshold for alterations
in leased buildings for public purposes
is $1,687,500.
The second qualifying category of
EISA-subject buildings covers any new
Federal buildings or major renovations
to Federal buildings that are not public
buildings and for which the
construction cost or major renovation
cost is at least $2,500,000 (in 2007
dollars, adjusted for inflation). Agencies
can calculate what that adjusted cost
threshold would be currently by visiting
(https://data.bls.gov/cgi-bin/cpicalc.pl).
As noted previously, GSA also provides
a separate dollar threshold for
alterations in leased public buildings
($1,687,500 in FY2022). DOE will use
both of these thresholds (i.e., the
$2,500,000 in FY 2007 dollars, and the
$1,687,500 in FY2022, each adjusted for
inflation) for this second category of
EISA-subject buildings (i.e., buildings
for which a prospectus is not required).
With respect to the threshold for
alterations in leased buildings, while
section 433 of EISA prescribes a
$2,500,000 (in 2007 dollars) threshold
for major renovations for which a
prospectus is not required, DOE
proposes to use the lower GSA
prospectus threshold for alterations in
leased buildings for this second category
of EISA-subject buildings because it is
consistent with: (1) current agency
practice for such buildings, and (2) the
scheme Congress established in EISA
section 433 where the prospectus dollar
thresholds (e.g., $2,500,000 in 2007
dollars) are nonetheless applied to
buildings and renovations for which a
prospectus is not required.
For example, a building in the first
category would include a federal office
building for which design for
construction began in FY 2022 and with
construction or renovation costs that are
more than $3,375,000. A building in the
second category would include a
residential building (which is excluded
6 40 U.S.C. 3307(a) also contains a second
prospectus threshold in 40 U.S.C. 3307(a)(3) which
applies to alterations of buildings which are under
lease by the Federal Government for use for a public
purpose if the cost of the alteration will exceed
$750,000. This threshold is one-half of the
threshold for all other new construction or
alterations of existing buildings.
7 See GSA Annual Prospectus Thresholds at
www.gsa.gov/real-estate/design-construction/gsaannual-prospectus-thresholds.
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from the definition of ‘‘public building’’
under 40 U.S.C. 3301) with construction
or renovation costs of at least $3,375,000
in FY22 ($2,500,000 (in 2007 dollars,
adjusted for inflation)). DOE expects
that the majority of low-rise residential
buildings that meet the cost threshold
will be low-rise multi-family buildings
or low-rise dormitories as Federal lowrise single-family homes are not likely
to meet the cost threshold.
When identifying major renovation
projects within an EISA-subject building
which could be subject to this
regulation because of the cost
thresholds, agencies should consider
any energy conservation measures
(‘‘ECMs’’) which have been identified in
that building and reported to DOE, as
per 42 U.S.C. 8253(f)(3)(A). If identified
ECMs include projects which would
impact on-site fossil fuel usage, the
agency should consider the total of
those project costs bundled together
when implementing those ECMs to
determine whether the total cost triggers
EISA compliance. ECMs that impact onsite fossil fuel usage may include, for
example: adding new fossil fuel-using
heating, hot water, or cooking systems
to an existing building; direct
replacement of existing fossil fuel-using
heating, hot water, or cooking systems
in an existing building; and
modification or replacement of any
building systems (including systems
such as lighting or building envelope
systems that do not use fossil fuel
directly) that lead to an increase or
decrease in fossil fuel use). Such an
approach would address a situation
where individual pieces of on-site fossil
fuel consuming technology are replaced
with similar technologies in a piecemeal
approach instead of a more strategic and
comprehensive way that furthers the
goals of EISA along with the
Administration’s priorities to reduce
Federal agencies’ reliance on fossil fuels
and reduce on-site Federal building
emissions.
II. Discussion of Proposed Standards
A. Performance Standards for Fossil
Fuel-Generated Energy Consumption
To provide flexibility while adhering
to the statutory origins of the rule, DOE
is proposing to keep the performance
standards for fossil fuel-generated
energy consumption metric from the
2014 SNOPR (expressed in kBtu per ft2
of building gross area) while also
providing an equivalent conversion of
the energy metric measured in
greenhouse gas (GHG) metrics. As
mentioned earlier, DOE has chosen to
focus on on-site fossil fuels or Scope 1
emissions, at least initially. This is a
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shift from the proposed scope of the
2014 SNOPR, which also included
consideration of off-site fossil fuel
consumption. DOE determined to focus
this rule on onsite fossil fuel use in light
of recent Federal building initiatives
and efforts to address fossil fuel use and
emissions generated off-site (e.g.,
Executive Order 14057). DOE may
address emissions generated off-site
(i.e., Scope 2 emissions) at a later time.
This SNOPR provides agencies with
two separate but equivalent sets of fossil
fuel generated energy consumption
targets—(1) fossil fuel-generated energy
consumption based on a summation of
on-site fossil fuel usage expressed in
kBtu per ft2 of building gross area and
(2) a new carbon dioxide equivalent
(‘‘CO2e’’) per ft2 metric based on the
emissions associated with the on-site
fossil fuel-generated energy
consumption. Both metrics are based
directly on the reported usage of fossil
fuels in CBECS and RECS, with the
fossil fuel-generated energy
consumption metric simply adding up
the fossil fuel usage and converting it to
kBtu and the CO2e metric converting the
amount of each fuel used to CO2e.
Agencies will be allowed to use either
metric for their design targets. DOE
opted to include the GHG metric, which
will measure Scope 1 emissions,
because agencies are already required to
track and report their GHG emissions
annually utilizing the ‘‘Federal
Greenhouse Gas Accounting and
Reporting Guidance’’ (Council on
Environmental Quality (‘‘CEQ’’),
January 17, 2016). DOE is proposing to
align the quantifications and
terminologies with those established in
the Federal Greenhouse Gas Accounting
and Reporting Guidance, which
categorizes Scope 1 emissions into
‘‘Generation of electricity, heat, cooling,
or steam’’, ‘‘Mobile sources’’, ‘‘Fugitive
emissions’’, and ‘‘Process emissions’’.
As mentioned earlier, at this time, DOE
is proposing that the scope of this rule
to be focused only on the on-site fossil
fuel associated with the ‘‘Generation of
electricity, heat, cooling, or steam’’.
DOE is proposing two exceptions to
the scope of coverage of the standards
in this SNOPR which differ from how
emissions are instructed to be tracked
by the Federal Greenhouse Gas
Accounting and Reporting Guidance.
First, DOE is proposing to exclude onsite fossil fuel energy generation or
Scope 1 emissions associated with
emergency backup generation of
electricity from the scope of this rule.
The Federal Greenhouse Gas
Accounting and Reporting Guidance for
the category of Scope 1 emissions from
‘‘generation of electricity, heat, cooling,
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or steam’’ requires tracking and
reporting for emergency generators.
However, DOE intends for agencies to
include all on-site fossil fuel use or
Scope 1 emissions associated with nonemergency generation from backup
generators (such as those for peak
shaving or peak shifting) in the scope of
this rule. DOE may revisit the issue of
whether to include these on-site fossil
fuel uses in the future. DOE also notes
that if agencies use their backup
generators for both purposes, they will
be required to calculate what fraction of
their backup generator Scope 1
emissions is associated with emergency
use and what fraction is associated with
non-emergency use.
Second, DOE proposes to exclude any
energy generation or Scope 1 emissions
associated with biomass fuels from this
rule, as they are not fossil fuel based
and thus fall outside the coverage of this
rule. DOE acknowledges that CEQ’s
guidance is different on biomass but is
complimentary to provide additional
coverage outside the fossil fuel scope
mandated by statute for this proposed
rulemaking. The Federal Greenhouse
Gas Accounting and Reporting
Guidance, unlike this rule, is not
limited to fossil fuel-based emissions,
and states that Scope 1 emissions
include ‘‘emissions from biomass
combusted for production of electricity,
heat, cooling, or steam’’. However,
because EISA 2007 directed DOE to
establish regulations that require fossil
fuel-generated energy consumption
reductions, and biomass is not a fossil
fuel, DOE has intentionally left biomass
out of the CBECS and RECS targets
developed for this rule. Agencies
therefore would not include any energy
consumption or Scope 1 emissions from
biomass in their calculations.
Also, at this time DOE is focusing the
scope of the SNOPR to regulate on-site
fossil fuel use or Scope 1 on-site
emission from stationary combustion
sources. As such, any emissions
associated with natural gas for
alternatively fueled vehicles (‘‘AFVs’’)
(or any other alternative fuel defined at
42 U.S.C. 13211 that is provided at a
Federal building) would be excluded
from coverage of these standards. In
addition, for buildings with
manufacturing or industrial process
loads, DOE notes that the CBECS and
RECS data that provide the targets for
this rule do not contain manufacturing
or industrial process loads. Therefore,
DOE proposes to exclude these loads
from coverage as well. For buildings
with such process loads, the process
loads will need to be accounted for in
the analysis of the building’s fossil fuel
consumption and GHG emissions but
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would not be subject to the percentage
reductions in fossil fuel-generated
energy consumption (Scope 1 GHG
emissions) required for the building
related loads.
B. Compliance With Performance
Standards for New Construction and
Major Renovations of a Whole Building
DOE has developed quantitative
requirements to determine compliance
with the fossil fuel performance
standards for new construction and
major renovations (i.e., major renovation
of all Scope 1 fossil fuel-using systems
in a building) of EISA-subject buildings.
Consistent with the changes proposed in
this SNOPR, DOE is proposing to define
the term ‘‘Major renovation of all Scope
1 fossil fuel-using systems in a
building,’’ which DOE proposes to
define as a renovation of all Scope 1
fossil fuel-using systems on an existing
building that is so extensive that it
replaces all scope 1 fossil fuel-using
systems in the building. This term
includes, but is not limited to,
comprehensive replacement or
restoration of most or all major systems,
interior work (such as ceilings,
partitions, doors, floor finishes, etc.), or
building elements and features. DOE
also refers to such major renovations as
‘‘whole building’’ renovations
throughout this preamble.
The proposed quantitative
requirements would require agencies to
calculate the on-site fossil fuelgenerated energy consumption in kBtu
of fossil fuels or the Scope 1 GHG
emissions in CO2e of their proposed
building design and compare that
estimate to the allowable fiscal year
percentage reduction target found in the
target tables in appendix A. Per statute
(42 U.S.C. 6834), DOE has provided
three compliance years in this SNOPR,
those EISA-subject buildings for which
the design for construction or major
renovation begins in the FY2024,
FY2025 to FY2029, and for those which
the design for construction or major
renovation begins during or after
FY2030.
Fundamentally, the calculation would
require agencies to determine the
allowable target (in either kBtu of onsite fossil fuels or Scope 1 greenhouse
gas (‘‘GHG’’) emissions attributed to the
generation of electricity, heat, cooling,
or steam) for stationary combustion
sources as per ‘‘Federal Greenhouse Gas
Accounting and Reporting Guidance’’
(Council on Environmental Quality
(‘‘CEQ’’), January 17, 2016). The kBtu
values or the metric tons of CO2e from
the Scope 1 emissions can then be
divided by the floor area of the building
and converted to per square foot (metric
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tons of CO2e per square foot) value that
can be compared with the target values
in appendix A. 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 EISA-subject buildings for which
design for construction or whole
building renovation begins in the
FY2024 to FY2029, tables of the
proposed maximum allowable on-site
fossil fuel-generated energy
consumption (expressed in both kBtu
per ft2 and Scope 1 GHG emissions in
CO2e per ft2) by building type and
climate zone are provided. The
proposed values in the tables come from
DOE’s 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 kBtu
and Scope 1 GHG emissions in CO2e. As
noted previously, DOE is proposing to
define the term ‘‘Major renovation of all
Scope 1 fossil fuel-using systems in a
building’’ as a major renovation of all
scope 1 fossil fuel-using systems in a
building that is so extensive that it
replaces all scope 1 fossil fuel-using
systems in the building. This term
includes, but is not limited to,
comprehensive replacement or
restoration of most or all major systems,
interior work (such as ceilings,
partitions, doors, floor finishes, etc.), or
building elements and features. DOE
also uses the term ‘‘whole building
renovation’’ in reference to these types
of renovations throughout this
preamble.
For EISA-subject buildings for which
design for construction or whole
building renovation begins in fiscal year
2030 or beyond, the fossil fuel-generated
energy consumption of the building
must be zero for all building types and
climate zones, based on the calculation
established in the regulations.
C. Compliance With Performance
Standards for Major Renovations Within
a Building
To determine compliance with the
fossil fuel performance standards for
major renovations of systems or
components within EISA-subject
buildings, DOE has developed
streamlined proposed prescriptive
requirements. The proposed
prescriptive requirements in this case
would be that the systems within the
building undergoing major renovation
would be brought up to the performance
requirements of the individual sections
of ASHRAE 90.1–2019 (chapters 5–10).
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DOE is not proposing fiscal year
timeframes for these requirements to
apply, but rather, agencies would begin
implementing them upon effective date
of the rule. For major renovations in
EISA-subject buildings which meet the
project cost threshold and coverage
requirements that are less than whole
building renovations (i.e., projects
within the existing building comprising
of retrofits to a single system or
component such as a HVAC system or
a chiller), agencies would be required to
follow the following prescriptive
requirements.
A major renovation within a building
is defined as a major renovation of a
scope 1 fossil fuel-using building system
or scope 1 fossil fuel-using component
that provide significant opportunities
for energy efficiency or reduction in
fossil fuel-related energy consumption.
This includes, but is not limited to,
replacement of the HVAC system, hot
water system, or cooking system, or
other fossil fuel-using systems or
components of the building that have a
major impact on fossil fuel usage. For
component level renovations, meaning
just a product or piece of equipment,
agencies would be required to utilize
electric or non-fossil fuel using Federal
Energy Management Program (‘‘FEMP’’)
designated or ENERGY STAR
equipment, which follow existing
Federal requirements for equipment
efficiency (found in 10 CFR part 436,
subpart C, ‘‘Agency Procurement of
Energy Efficient Products’’).
For system level renovations, agencies
would be required to utilize electric or
non-fossil fuel using FEMP designated
or ENERGY STAR equipment, in
alignment with 10 CFR part 436, subpart
C and would also be required to meet
the system level requirements for the
systems being renovated in the model
energy codes used to establish baseline
energy efficiency standards for Federal
buildings (i.e., the current ASHRAE
Standard 90.1 for Federal commercial
and high-rise multi-family buildings
covered under 10 CFR part 433 or the
current IECC for Federal low-rise
buildings covered under 10 CFR part
435.)
While this SNOPR would only cover
systems and components that utilize onsite fossil fuels, agencies should ensure
that projects that could have secondary
impacts on fossil fuel using equipment,
such as lighting or window replacement
projects are considered. DOE encourages
agencies to consider whole building
optimization for any type of major
renovation project to ensure no adverse
impacts to on-site fossil fuel use. DOE
also encourages on-site renewables such
as solar and storage as good practice.
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DOE is not including on-site solar as a
means to offset on-site fossil fuel
consumption because it will not reduce
the overall on-site contribution even
though it is a means to reduce emissions
from the electricity use of Federal
building. DOE requests that agencies
provide comments on how to ensure
major renovations which do not directly
replace on-site fossil fuel using
equipment could be incorporated in this
rule (e.g., lighting replacement projects
that indirectly increase onsite fossil fuel
usage through decreased internal gains
and higher subsequent heating loads).
D. Development of Fossil FuelGenerated Energy Consumption Target
To develop the target values in
appendix A, DOE utilized CBECS and
RECS data to determine the on-site
fossil fuel usage by fossil fuel type for
each building in CBECS or RECS and
then applied two transformations to that
data.
The CBECS and RECS data was
parsed into the 19 climate zones used in
the current Federal baseline standards
for commercial and multi-family highrise residential buildings, which rely on
ASHRAE Standard 90.1–2019. The same
19 climate zones are used in the current
Federal baseline standards for low-rise
residential buildings, which rely on the
2021 IECC.
The first transformation DOE
performed was converting the fossil fuel
consumption data collected and
reported in CBECS and RECS by
building and by fossil fuel into kBtu,
dividing by the building area, applying
the weighting factors associated with
the building, and assigning each
building to one of the building type/
climate zone bins. The resulting target is
expressed in terms of allowable kBtu
per square foot by building type and
climate zone.
The second transformation was taking
the same fossil fuel consumption data
reported in CBECS and RECS for each
building, multiplying the fossil fuel
usage for each fuel type by the
applicable GHG coefficient from the
CEQ guidance for each fuel type,
dividing by the building area, applying
the weighting factors associated with
the building, and assigning each
building to one of the building type/
climate zone bins. The resulting target is
expressed in terms of allowable CO2e (in
metric tons of CO2e) per square foot by
building type and climate zone. The
resulting targets are shown in appendix
A to subpart B of parts 433 and 435 in
Table A–1a and Table A–1b.
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E. Petitions for Downward Adjustment
Under section 433 of EISA 2007,
agencies other than GSA may petition
DOE for an adjustment to the fossil fuelgenerated energy consumption
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. The 2014 SNOPR proposed
allowing GSA tenant agencies with
significant control over building design
to petition DOE, and that proposal is
carried forward into this second
SNOPR. This SNOPR proposes a list of
what information would be required in
a petition for a downward adjustment
for a new building and for major
renovations that are whole building
renovations. This includes a description
of the building and associated
components and equipment, an
explanation of why compliance with the
requirements is technically
impracticable considering 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,
the largest feasible reduction in fossil
fuel-generated energy consumption that
can reasonably be achieved, and a
description of measures that were
evaluated but rejected. As proposed, the
Director of FEMP will review the
petition and make a best effort to return
the complete petition in 45 calendar
days of submittal (see 42 U.S.C.
8253(i)(3)(B)(iv)); incomplete petitions
will not be subject to this timeframe and
may result in delays.
Additionally, this rulemaking
proposes a separate downward
adjustment process for major
renovations that are system or
component level retrofits. Upon
application, a major renovation that is
limited to a component level retrofit
will 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
using ENERGY STAR or FEMP
designated products. Upon application,
a major renovation that is limited to a
single system or multiple systems will
receive a downward adjustment equal to
the energy efficiency level that would be
achieved through the use of the same
ENERGY STAR or FEMP designated
products as required for component
renovations and through use of the
system level requirements for
renovations found in the baseline
energy efficiency standards in 10 CFR
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part 433 (ASHRAE Standard 90.1–2019)
or 10 CFR part 435 (the 2021 IECC). If
the petition only contains component
level retrofits for adjustment
consideration, the Director of FEMP will
review the petition and make a best
effort to return the complete petition
within 20 calendar days of submittal
(see 42 U.S.C. 8253(i)(3)(B)(iv));
incomplete petitions will not be subject
to this timeframe and may result in
delays. DOE is also considering a
separate petition process for Department
of Defense projects that serve critical
national security functions. Under this
separate process, the head of the agency
designing the building (or his or her
designee) must certify that meeting the
Scope 1 fossil fuel-based energy
consumption targets would be
technically impracticable because the
building, system, or component serves a
critical national security function and
providing basic facility or project design
information may divulge sensitive
national security information. The
petition must be accompanied by a
statement that the agency has reduced
the fossil fuel-based energy
consumption of the building, system or
component and complied with the other
requirements of this part to the
maximum extent practicable. DOE
believes this separate process would be
protective of critical national security
projects and information, while also
ensuring that DOE meets its petition
obligations under 42 U.S.C. 6834.
However, DOE recognizes that the term
‘‘critical national security function’’ is
potentially ambiguous. DOE also
recognizes that agencies may need
flexibility in defining what buildings or
projects serve critical national security
functions, and that a pending petition
may delay projects that serve critical
national security functions.
DOE requests comment on (i) a
separate petition process for buildings
and projects serving critical national
security functions, (ii) if and how DOE
should define ‘‘critical national security
functions’’, (iii) whether such buildings
or projects (or some of them) should be
exempt from the scope of the proposed
rule, and (iv) how agencies should use
their own discretion in determining
what buildings or projects serve critical
national security functions.
F. Terminology To Be Defined in This
Rulemaking
This SNOPR adds definitions for
‘‘construction cost,’’ ‘‘design for
renovation,’’ ‘‘fiscal year (‘‘FY’’),’’
‘‘major renovation,’’ ‘‘major renovation
cost,’’ ‘‘major renovation of a whole
building,’’ ‘‘major renovation of a
building system or component,’’ ‘‘multi-
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family high-rise residential building,’’
and revises the definition for ‘‘proposed
building.’’ For the purposes of
establishing the targets, this proposed
rulemaking establishes the definitions of
16 categories of commercial buildings
and 5 categories of residential dwelling
units which cover all residential
buildings, including low-rise (singlefamily and multi-family), mid-rise
apartment buildings, and high-rise
apartment building.
The 16 categories of commercial
buildings defined 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 (not
applicable), retail (other than mall),
service, and warehouse and storage.
Many of these commercial building
categories are further divided into
building types, providing a total of 48
commercial building types. These
building categories and building types
represent the high-level Principle
Building Activity (‘‘PBA’’) and low-level
Principle Building Activity Plus
categories in the 2003 CBECS.
The five categories of residential
buildings are divided into five building/
activity types: mobile, multi-family in
2–4-unit buildings, multi-family in 5 or
more unit buildings, single-family
attached, and single-family detached.
These building types represent the
housing unit types in the 2005 RECS.
Residential buildings that fall under 10
CFR part 435 and multi-family mid-rise
and high-rise buildings that fall under
10 CFR part 433 will use these same
categories. For the purposes of analysis
of the rule, DOE assumes that most
multi-family high-rise residential
buildings will fall into the ‘‘multi-family
in 5 or more unit buildings’’ based on
the most typical buildings
representative of the Federal building.
Federal agencies would be required to
select from these 53 categories to
identify the fossil fuel-generated energy
consumption target (expressed in both
kBtu per ft2 and Scope 1 GHG emissions
in CO2e per ft2), for their new
construction or building undergoing a
major renovation. DOE notes that the
building types available from CBECS
and RECS do not correspond directly to
the building types used in the Federal
Real Property Profile (‘‘FRPP’’). Thus,
agencies may need to area-weight the
floor space these CBECS and RECS
targets for Federal buildings that do not
correspond directly to the CBECS or
RECS building types. For example, a
DOD Post Exchange building might have
aspects of Food Sales, Food Service, and
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Mercantile, necessitating the
development of an area-weighted target.
Similarly, a DOD barracks building
might include aspects of Lodging or
Residential, Education, and Warehouse,
again necessitating the use of an areaweighted mapping.
III. Additional Discussion Including
Related Comments
DOE received 179 comments on the
2014 SNOPR from 27 different entities.8
The comments were analyzed and
categorized into the same six major
categories used to categorize comments
on the NOPR: Scope and Applicability
of the Proposed Rule, Baseline,
Methodology, Impacts, Petition for
Downward Adjustment, Impacts of the
Rule, and Guidance. Each major
category of comment was broken down
into multiple subcategories for
discussion purposes.
DOE believes that many of the prior
comments may no longer be appropriate
or applicable given recent Federal
building initiatives (e.g., Executive
Order 14057) and the significant change
in the scope of the rule in this second
SNOPR. Therefore, in this SNOPR, DOE
only discusses comments relevant to
DOE’s current proposal, and only in a
manner applicable to this proposal. DOE
encourages those agencies and other
stakeholders who commented on the
2014 SNOPR to read this proposed rule
and provide further comment on this
updated proposal.
A. Scope and Applicability of the
Proposed Rule
This section discusses the scope and
applicability of the proposed rule and
the comments received on the 2014
SNOPR regarding that topic. The
subcategories of comments are
determining the $2.5 million threshold
for applicability of the rule, compliance
date of the rule, major renovations,
multiple buildings, leased buildings,
Federal buildings overseas, residential
buildings, privatized military housing,
and other relevant comments.
1. Determining the $2.5 Million
Threshold for Applicability of the Rule
DOE received four comments
including the Clean Energy Rule’’
should apply to all new construction
without consideration of the $2.5
million threshold,’’ ‘‘the $2.5 million
threshold implies that low-rise
residential buildings (such as military
8 Comments received on the proposed rule are
designated by the commenter or commenting
organization, the DOE assigned number of the
individual comment, and the page number of the
commenters or commenting organizations
submission.
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family housing) will not be included,’’
‘‘replace the mention of the $2.5 million
in 2007 dollars with a table of year by
year amounts,’’ and ‘‘do not use the $2.5
million threshold for major renovations
as the definition of those renovations
already mentions ‘significant
opportunities’ ’’. In light of the comment
to provide tables with the year-by-year
the $2.5 million in 2007 dollars, DOE
has provided a link to the GSA website
where such a table resides. See
www.gsa.gov/real-estate/designconstruction/gsa-annual-prospectusthresholds. In response to comments
suggesting different cost thresholds, the
cost threshold at 42 U.S.C. 6834(3)(D)(I)
forms the basis of the $2.5 million in
2007 cost threshold. DOE maintained
use of this threshold in this SNOPR for
consistency with the statutory
requirement.
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2. Compliance Date of the Rule
DOE received two comments on this
topic, including a comment that the rule
is overdue and another that DOE should
finalize this rule only when DOE feels
that agencies can meet the requirements
in the rule, especially for the
requirements in year 2030 and beyond.
DOE is issuing this SNOPR with the
intent of establishing these standards
expeditiously. DOE also believes that
agencies can now meet the requirements
of this revised SNOPR as the new
proposal would simply require
elimination of on-site fossil fuel usage
in the years 2030 and beyond.
3. Major Renovations
DOE received four comments on the
2014 SNOPR related to major
renovations, including (1) agencies
might break up their renovations into
smaller pieces to avoid the rule’s scope,
(2) DOE should eliminate requirements
for major renovations that involve single
components or systems, (3) DOE should
provide instructions for how to deal
with major renovations for part of a
building, and (4) agreement with DOE’s
previous decision to drop a 25 percent
replacement cost threshold that
appeared in the original NOPR. In
response, DOE accepted the first, third,
and fourth comments, but rejected the
second comment. DOE will attempt to
discourage the possibility of ‘‘breaking
up renovation projects to get around the
cost threshold’’ in the guidance
document that will accompany this rule.
DOE notes that section 433 states that
‘‘[i]n establishing criteria for identifying
major renovations that are subject to the
requirements of this subparagraph,
[DOE] shall take into account the scope,
degree, and types of renovations that are
likely to provide significant
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opportunities for substantial
improvements in energy efficiency.’’ 42
U.S.C. 6834(a)(3)(D)(ii). This indicates
Congressional intent that the term
‘‘major renovations’’ should be
construed broadly to include projects
for which agencies can practicably
implement the energy efficiency and
fossil fuel reduction goals of ECPA and
EISA. DOE believes that major
renovations that are less than whole
building renovations, i.e., component
and system level renovations, can
provide significant opportunities for
substantial improvements in efficiency
and reduction of fossil fuel usage across
the Federal building portfolio.
Accordingly, this proposed rule
addresses how building systems and
components should be addressed if only
part of the building is renovated, and
the requirements for these renovations
are not based on the whole building
targets that apply to new construction
and major renovations of the whole
building.
4. Multiple Buildings
DOE received one comment in this
category supporting DOE’s decision to
apply the $2.5 million threshold to
individual buildings rather than to
multiple buildings in a single project.
DOE concludes that the $2.5 million
threshold should apply to individual
buildings in order to determine whether
they are covered buildings under this
rule. The statute mandates that the
requirements apply to ‘‘buildings,’’ not
‘‘projects’’ or ‘‘developments.’’ (42
U.S.C. 6834(a)(3)(D)(i))
5. Leased Buildings
DOE asked for and received two
comments on leased buildings. One
comment pointed out that applying this
rule to short term leases would preclude
the use of Utility Energy Service
Contracts (‘‘UESCs’’) or Energy Savings
Performance Contracts (‘‘ESPCs’’). DOE
notes that agencies may implement
UESCs and ESPCs in leased buildings.9
Therefore, the rule’s requirements
would apply to renovations of such
leased buildings where the cost
thresholds are met. However, DOE does
not anticipate that many, if any,
agencies would implement such
renovations in short-term leases, and
expects that most renovations of shortterm leases would likely fall under the
9 More guidance on considerations and
implementation of ESPCs and UESCs in leased
spaces may be found on FEMP’s web page. For
ESPCs: https://www.energy.gov/sites/default/files/
2022-07/espc_faq_42-usc-8287-0622.pdf. For
UESCs: https://www.energy.gov/eere/femp/
frequently-asked-questions-about-federal-utilityenergy-service-contracts.
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cost thresholds of the rule. However, the
rule would not apply in cases of Federal
agencies leasing space in buildings
where the entire building is not leased
to the Federal Government. This
proposed rule only applies to major
renovations of buildings originally built
to be leased to the Federal Government
with the exclusion that if the building
at issue is not entirely leased to the
Federal Government at the time of
renovation, this proposed rule does not
apply. DOE also received a comment
objecting to DOE removing mention of
‘‘significant design control’’ as a
limitation to the rule. In response to this
comment, DOE points out that it
addressed a similar comment in the
issuance of the Green Building
Certification Rule. (79 FR 61563) In that
rule, DOE stated that it has not
expressly added the significant control
restriction to the rule for leased
buildings because the ECPA definition
of Federal building is limited to
buildings that are built specifically for
the Federal government. See 42 U.S.C.
6832. Construction design for a building
built specifically for use of the Federal
government, including under lease to a
Federal agency, is, presumably, under
the significant control of the Federal
owner or Federal lessee. DOE reaffirms
its previous decision on significant
control in this proposed rule.
6. Federal Buildings Overseas
DOE received no comments on this
topic in the 2014 SNOPR. DOE reaffirms its statement that this proposed
rule will 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)).
7. Residential Buildings
DOE received no comments on
residential buildings in the 2014
SNOPR. Therefore, DOE does not
believe any changes to the proposed
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language in the 2014 SNOPR are
needed. The statute requires the
inclusion of all Federal buildings,
including residential buildings that are
EISA-subject buildings.
8. Privatized Military Housing
DOE received no comments on this
topic in the 2014 SNOPR. Therefore,
DOE will confirm its use of the EISA
2007-modified ECPA definition of
‘‘Federal building’’ to apply to any
building to be constructed by, or for the
use of, any Federal agency. Such 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, 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)’’ of section 433 of EISA. (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 rule will
apply to privatized military housing
with construction costs of at least $2.5
million. As described in this preamble,
this cost threshold applies on an
individual building basis.
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9. Other Relevant Comments
DOE received three comments in this
category. One comment from electric
utilities indicated that fossil fuel
generated energy consumption of a
building should only apply to on-site
energy consumption. DOE agrees with
this comment and this proposed rule is
based solely on on-site fossil fuel usage.
A second comment indicated that the
rule should include all Federal
buildings due to the long term
ecological and economic benefits of the
rule. DOE notes that under section 433
of EISA 2007, there is a clear limit to the
application of this rule to larger and
costlier buildings and major renovations
so DOE declines to expand the rule to
additional Federal buildings. A third
comment indicated that the use of
energy efficient buildings is not only
ecologically sound but also of great
strategic value, due to the increases in
energy costs and the reduction of
government funds to pay for programs
and these costs. DOE agrees with this
comment.
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B. Establishing and Using the Baseline
4. Differentiating Between Fossil Fuels
This category was divided into nine
subcategories: CBECS and RECS
baselines, climate adjustment, plug and
process loads, differentiating between
fossil fuels, regional fossil fuel factors,
marginal source of electricity,
residential common areas, major
renovations, and other relevant
comments.
DOE received several comments on
the NOPR about differentiating between
fossil fuels i.e., natural gas versus crude
oil. The comments varied, although
most favored differentiating between
fossil fuels. DOE received three
comments on the 2014 SNOPR on this
topic, with two comments agreeing that
not differentiating between fossil fuel
was appropriate and one comment
focusing on the source emissions factors
used by DOE. In response, DOE notes
that this proposed rule focuses on only
on-site fossil fuel emissions. DOE notes
that the targets, while based on the
actual fossil fuels used in CBECS and
RECS buildings, are expressed only in
terms of overall kBtu per ft2 of fossil
fuels or CO2e per ft2 of emissions, thus
keeping with DOE’s original intent of
not differentiating between fossil fuels.
DOE also notes that since the rule is
now focused on on-site fossil fuel use
only, the issue of source emission
factors for electricity is now less
important as DOE is no longer
proposing to regulate the fossil fuel
content of electricity used in Federal
buildings. DOE does acknowledge that
the source emission factors related to
electricity are used in DOE’s analysis of
the impacts of the rule and that DOE
will use the latest available source
emission factors from DOE and EPA.
1. CBECS and RECS Baselines
DOE received two comments in this
category—one asking if DOE was
planning to update the rule to refer to
the 2012 CBECS when that data became
available and another questioning the
statistical significance of the CBECS
data when it is split at the building
category level. In response, DOE notes
that EISA 2007 requires the use of 2003
CBECS and RECS as a baseline. DOE
also notes that because this proposed
rule includes a gradual increase to 100
percent fossil fuel-based energy
consumption reduction in 2030, the use
of a single, unchanging baseline is
necessary.
DOE believes that while there may be
some loss of statistical significance by
using disaggregated building types and
climate zones, the flexibility the
disaggregation provides agencies in
terms of selecting a building type and
climate zone that much more accurately
reflects an agency’s building and its
location outweighs the loss of statistical
significance.
2. Climate Adjustment
DOE received no comments on this
topic in the 2014 SNOPR. Therefore,
DOE re-affirms its commitment to
including fossil fuel-based energy
consumption reduction targets based on
both building type and climate zone in
the rule.
3. Plug and Process Loads
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. In response, DOE received 15
comments on plug and process loads.
Given that DOE has revised the scope of
this proposed rule to apply only to onsite fossil fuel usage associated with
heating, hot water, generation of
electricity, and cooking, virtually all
these comments are no longer
applicable. Plug loads (entirely electric)
are excluded from this proposed rule.
Certain process loads that use fossil fuel
may be applicable in the petition
process.
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5. Regional Fossil Fuel Factors
DOE indicated in the 2010 NOPR that
it was considering a regional approach
to establishing the fossil fuel fraction
associated with electricity and asked for
comments. In the 2014 SNOPR, DOE
decided to use the national electric
power mix in determining the fossil fuel
portion of electricity consumption in
the rule. DOE received no comments on
this topic in the 2014 SNOPR, so DOE
re-affirms those decisions in this second
SNOPR. DOE also notes that this issue
is much less important in this proposed
rule as DOE is no longer regulating the
fossil fuel content of grid electricity
used in Federal buildings. DOE does
acknowledge that the source emission
factors related to electricity are used in
DOE’s analysis of the impacts of the rule
and that DOE will use the latest
available source emission factors from
DOE and EPA.
6. Marginal Source of Electricity
DOE received a number of comments
on this topic in the NOPR and proposed
in the 2014 SNOPR to not use marginal
electric source factors. DOE received
two comments on this topic in the 2014
SNOPR, both agreeing with DOE’s
decision not to use marginal electrical
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rates. Receiving no other comments,
DOE re-affirms its tentative decision to
not use marginal electricity rates in
second SNOPR.
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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.
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 fuelgenerated 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.
DOE received no comments on this
topic in the 2014 SNOPR and re-affirms
the approach taken in the NOPR and
2014 SNOPR in this second SNOPR.
8. Major Renovations
As noted previously in this document,
the CBECS and RECS data that provide
the baseline for this proposed
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, in the 2014 SNOPR,
DOE proposed that the requirements for
system and component level retrofits be
based on the 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 requested comment on
this approach, as well as comment on
other approaches that could be used to
determine the requirement for system
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and component level retrofits. DOE
received five comments on this topic in
the 2014 SNOPR. Comments ranged
from agreement with DOE’s approach to
not require major renovations of systems
or components to meet the full target to
opposition to DOE’s approach because it
did not require specific evaluation of
the renovation petitions, to comments
that DOE should expand the scope of
the rule to all renovations, even those
that did meet the cost threshold, and
other comments that DOE should apply
the requirements of ASHRAE Standard
90.1 and the IECC to renovations, and
comments that DOE should not even
consider major renovations that do not
involve the whole building, but which
happen to meet the cost-threshold.
In response, DOE notes major
renovations are required to be part of
this proposed rule by statute, and that
DOE believes any renovation that meets
the cost-threshold of the rule and falls
within the scope of the rule should
comply with the rule unless agencies go
through the petition process for specific
considerations of a given project. DOE is
proposing this approach to allow
agencies to take a more holistic view of
their renovation projects over time, so
that projects resulting in load reductions
(such as insulation improvements) as
well as electrifying end-uses can be
implemented in a complimentary
fashion. DOE also notes that for major
renovations involving only replacement
of equipment (such as boilers), there is
little else DOE can direct agencies to do
other than to use high efficiency
equipment (as is required under 10 CFR
part 436, subpart C) and to require that
that equipment uses electricity and not
fossil fuels. DOE cannot require
agencies to renovate other parts of the
building. For major renovations that
involve renovation of individual
systems (such as hot water or heating,
ventilation, and air-conditioning
(‘‘HVAC’’) systems), DOE is requiring
agencies to use high efficiency
equipment that uses electricity and not
fossil fuels and meet the renovation
requirements of the baseline standards
in 10 CFR part 433 (ASHRAE Standard
90.1–2019) or 10 CFR part 435 (the 2021
IECC), as appropriate. DOE notes and
encourages on-site renewables such as
solar and storage as good practice.
9. Other Relevant Comments
Three additional comments were
submitted that do not fit into one of the
scope subcategories. One comment
recommended using embodied energy
in the rule. DOE noted that it was
required to use CBECS and RECS data
per statute and that CBECS and RECS do
not contain embodied energy. Two other
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comments recommended that DOE
implement a multiplier based on hours
of operation for Federal buildings that
are in operation longer than
corresponding private sector buildings
found in CBECS. DOE found these two
comments persuasive because many
types of Federal buildings are operated
longer hours than typical buildings
covered in CBECS and RECS. In
addition, DOE notes that hours of
operation are already considered in
tools such as ENERGY STAR Portfolio
Manager which agencies are required to
use as part of their building
benchmarking activities. (42 U.S.C.
8253(f)(8)) The hours of operation of a
building are also implicit in any whole
building simulation done on a building
design, with longer hours of operation
typically leading to higher energy usage.
The proposed shift multiplier in this
proposed rule is based on analysis by
Oak Ridge National Laboratory and was
originally developed for ASHRAE
Standard 100–2018 and is expressed in
‘‘number of operating shifts’’ as opposed
to actual hours of operation. Shift
multipliers provided are both less than
and greater than 1 depending on
building type. For government offices,
for example, operating the building for
2 shifts does not increase the energy
usage, but operating the building 3
shifts increases the energy use by a
multiplier of 1.4. DOE notes that
residential buildings, by their very
nature, are already considered to be 24hour operation and, therefore, this
multiplier will only apply to Federal
commercial buildings regulated under
10 CFR part 433.
C. Methodology To Determine
Compliance
DOE categorized comments on the
methodology to determine compliance
in six subcategories: whole building
simulation, off-site and on-site
renewable energy and renewable energy
certificates, use of source energy, fuel
conversion efficiency, and on-site
energy generation from natural gas. Each
of these subcategories is discussed
below.
1. Whole Building Simulation
To determine energy use in the
proposed building design, DOE
proposed in the 2010 NOPR and reaffirmed in the 2014 SNOPR 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
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buildings, and the IECC 2004
Supplement for low-rise buildings. 75
FR 63409. Because of the complexity
involved in estimating fossil fuelgenerated energy consumption, this
requirement would effectively require
the use of a whole building simulation
tool, which can be difficult and
increases cost.
In the 2014 SNOPR, DOE recognized
that the whole building approach is
likely not appropriate for major
renovations that are limited to system or
component level retrofits. For major
renovations that are less than whole
building renovations (i.e., system or
component level-retrofits) DOE
proposed establishing the maximum
allowable fossil fuel consumption in
fiscal years 2018 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 proposed basing the
subject fossil fuel-generated energy
consumption on the system or
component as retrofitted. This will
require the design engineer to estimate
both the energy consumption of the
systems or components as renovated
and the energy consumption of the
entire building as renovated.
DOE received no comments on the
use of whole building simulation, but
DOE has changed its adopted approach
to major renovations to system and
components in a manner which will no
longer require whole building
simulation, as described in this section.
Instead, component and system level
renovations will be required to use
electric or non-fossil fuel using FEMP
designated or ENERGY STAR
equipment and system level major
renovations will be required to use the
same electric or non-fossil fuel using
FEMP designated or ENERGY STAR
equipment and major renovation
requirements in the baseline standards
for 10 CFR part 433 and 10 CFR part
435. (ASHRAE 90.1–2019 is the current
baseline standard for 10 CFR part 433
and the 2021 IECC is the current
baseline standard for 10 CFR part 435.)
2. Off-Site and On-Site Renewable
Energy and Renewable Energy
Certificates
In the NOPR and 2014 SNOPR for this
rule, DOE considered both the on-site
fossil fuel usage and the fossil fuel use
associated with the electricity used on
site. As part of compliance with the
NOPR and 2014 SNOPR versions of the
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rule, renewable energy and renewable
energy certificates were allowed for
compliance with this rule. This topic
area was the single most commented on
topic area in the 2014 SNOPR, with 51
comments being received. However,
given that DOE has chosen to refocus
this rule on just on-site fossil fuel usage,
the entire concept of using (or not using)
renewable energy or renewable energy
certificates to meet this rule is no longer
relevant. Therefore, DOE will not list all
the comments related to the use of
renewable energy and renewable energy
certificates from the 2014 SNOPR.
conversion efficiencies are taken from
FEMP’s Annual Reporting Template for
agencies.
5. On-Site Energy Generation From
Natural Gas
The 2010 NOPR indicated DOE’s
interest in the effect of the fossil fuelgenerated energy consumption
reduction requirements on distributed
energy technologies that provide on-site
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
3. Use of Source Energy
building in terms of utility purchases
and would, therefore, be required to
DOE previously made use of source
reduce natural gas consumption in
energy for both on-site fossil fuel usage
accordance with the fossil fueland electrical usage in the NOPR and
generated energy consumption
2014 SNOPR. DOE received six
reduction requirements. DOE indicated
comments on this topic in response to
its interest in minimizing the penalty in
the 2014 SNOPR. However, with the
order to not discourage the use of onrefocus of the rule to just on-site fossil
site CHP systems, within the limits of
fuel usage, consideration of source
the statutory language. DOE invited
energy is no longer relevant. DOE will
comments on the NOPR on how
use on-site fossil fuel usage using the
appropriate credit may be given for CHP
directions provided for Federal
systems through the compliance
greenhouse gas emission calculation as
determination methodology. 75 FR
noted previously in this proposed rule.
The six comments will not be discussed 63410.
DOE received several comments
in this SNOPR.
related to distributed energy
4. Fuel Conversion Efficiency
technologies on the 2010 NOPR. Based
on the comments received and a
In the NOPR, DOE proposed that the
electricity source energy factor would be technical review of the issues raised,
DOE proposed specificity on how CHP
based on the average utility delivery
and district heating systems should be
ratio in Table 6.2.4 of the 2010 DOE
Building Energy Data Book (See https:// considered in the 2014 SNOPR. Under
this proposed rule, for district heating or
buildingsdatabook.eere.energy.gov). 75
cooling systems using fossil fuel as the
FR 63410. The ratio accounts for fuel
conversion losses to produce electricity, source, the fossil fuel-generated energy
as well as transmission and distribution consumption would be determined by
adjusting the building load for the plant
losses. DOE used the electricity source
fuel conversion efficiency and estimated
energy factor of 0.316 from the most
distribution losses as reflected in the
recent year data was available, 2008.
Other Fuels Energy Source Multiplier. If
DOE made several definition changes
a non-fossil fuel is used as the sole
in the 2014 SNOPR and added a new
source energy multiplier for other fuels. source (e.g., geothermal) of energy for
the district heating system, there would
DOE received no comments on this
be no contribution to fossil fueltopic on the 2014 SNOPR, but DOE has
generated energy consumption.
made one further refinement to its
For CHP district heating systems, the
treatment of fuel conversion efficiency
electricity
attributed to the proposed
in this proposed rule. DOE has added
reference to ‘‘coke’’ 10 and used the same building would be determined by
multiplying the building’s pro-rated
source energy multiplier as for coal and
share of the total delivered heat from the
other fossil fuels. This action brings this
system times the total electricity
proposed rule more into alignment with
produced by the CHP system. For CHP
how fossil fuel usage is reported to
systems serving only one building, fossil
FEMP under the requirements of EISA
fuel consumption of the CHP system
2007 Section 432. The new fuel
would be added to the direct fossil fuel
consumption in Equation 1 proposed
10 Coke is defined as a solid carbonaceous residue
below. Because the electricity is
derived from low-ash, low-sulfur bituminous coal
from which the volatile constituents are driven off
produced from waste heat, the amount
by baking in an oven at temperatures as high as
of electricity produced by either the
2,000 degrees Fahrenheit so that the fixed carbon
CHP system serving a single building or
and residual ash are fused together. Coke is used
a CHP district heating system, as
as a fuel and as a reducing agent in smelting iron
ore in a blast furnace.
determined previously, would be
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deducted from the proposed design site
electricity in Equation 1 under the
renewable energy and CHP deduction.
In response to the 2014 SNOPR, DOE
received 22 comments from natural gas
associations, utilities, and
manufacturers of gas turbines and fuel
cells, most opposing the application of
this rule to natural gas as doing so
would will preclude the use of natural
gas in the future which is problematic
not only because it is an economical and
environmentally beneficial domestic
fuel, but also because doing so would be
fundamentally inconsistent with the
then Administration’s support of CHP
and the then Administration’s goals to
promote greater use of alternative fuels
by Federal agencies. This subcategory
was the second most commented on
topic in the 2014 SNOPR.
In response to these comments, DOE
emphasizes, once again, that this
proposed rule is based directly on
congressionally mandated language in
section 433 of EISA 2007, which
governs fossil fuel-generated energy
consumption. DOE notes that the use of
natural gas, CHP, and alternative fuels is
not entirely prohibited by this rule
(until 2030), although all fossil fuel
usage must be accounted for and is
regulated by this proposed rule.
6. Other Relevant Comments
DOE received fourteen additional
comments relating to methodology that
did not fit into one of the other
subcategories in this larger topic. These
comments covered potential exclusions
for thermal and electrical energy storage
systems, making this rule be based on
an agency portfolio (as opposed to on a
building-by-building basis), exemption
of emergency backup systems,
exemptions for fuel use for alternatively
fueled vehicles (‘‘AFVs’’), potential
credits for nuclear and hydropower
electricity, and the need to rewrite the
main equation in the rule.
In response to the comments about
energy storage systems, DOE’s rewrite of
the rule to focus only on on-site
combustion of fossil fuels makes any
discussion of electrical energy storage
moot. If agencies choose to burn fossil
fuels to store heat in a thermal energy
storage system, that fossil fuel would be
counted as part of the consumption of
the building. DOE notes that this rule
applies to individual buildings based on
statutory requirements, so DOE cannot
change this rule to a portfolio approach.
DOE notes that while emergency backup
systems are part of the Scope 1
emissions covered by this rule, DOE has
implemented a specific exemption for
emergency backup generators that are
used solely for emergency backup. Any
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use of these backup generators for peak
shaving, peak shifting, or other demand
management activities must be included
in the building consumption.
With respect to mobile sources,
section 433 of EISA refers to the fossil
fuel-generated energy use of ‘‘Federal
buildings.’’ 42 U.S.C. 6834(a)(3)(D)(i).
Under ECPA, the term ‘‘building’’
means ‘‘any structure to be constructed
which includes provision for a heating
or cooling system, or both, or for a hot
water system.’’ 42 U.S.C. 6832. This
does not include mobile sources.
Accordingly, mobile sources are
excluded from the scope of this rule.
Finally, DOE notes that credits for
nuclear and hydropower electricity are
no longer relevant to this proposed rule
and that the governing equation in this
proposed rule has been extensively
rewritten and simplified in accordance
with the change of scope.
D. 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, however, DOE proposes that
GSA tenant agencies that have design
control over their buildings and make
significant design decisions that will
allow for compliance with the rule may
petition DOE for a downward
adjustment, even if that building is
owned by GSA. DOE also proposes a
downward adjustment process for new
construction and major renovations that
are whole building renovations, as well
as for major renovations that are limited
to system or component level
renovations.
1. Technical Impracticability as a Basis
for Downward Adjustment
Technical impracticability is defined
as a situation in which achieving the
Scope 1 fossil fuel-based energy
consumption targets would: (1) not be
feasible from an engineering design or
execution standpoint due to existing
physical or site constraints that prohibit
modification or addition of elements or
spaces; (2) significantly obstruct
building operations and the functional
needs of a building, specifically for
industrial process loads, research
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operations, and critical national security
functions, mission critical information
systems as defined in NIST SP 800–60
Vol. 2 Rev. 1; or 3) significantly degrade
energy resiliency and energy security of
building operations as defined in 10
U.S.C. 101(e)(6) and 10 U.S.C. 101(e)(7),
respectively. Upon determination that
complying with these standards is
technically impracticable, the building
would still be required to reduce fossil
fuel consumption to the maximum
extent practicable. Technical
impracticability may include technology
availability and cost considerations but
may not be based solely on cost
considerations.
The 2010 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 also invited comments on what
kind of technical impracticability would
constitute grounds for a petition for
downward adjustment. DOE received a
number of comments on this topic in
the NOPR and restated its position in
the 2014 SNOPR that cost could not be
the sole rationale for a determination of
‘‘technically impracticable.’’ DOE also
emphasized in the 2014 SNOPR 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 fuelgenerated 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.
DOE received no further comments on
this topic in the 2014 SNOPR and thus
reaffirms its intent to not allow cost as
the sole rationale for a determination of
technically impracticable, but also to
consider an agency’s functional needs in
that determination.
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.
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DOE agreed 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. In the
2014 SNOPR, DOE stated that 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 also noted
in the 2014 SNOPR that 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 and location; (2) that are being
designed and constructed to the same
set of targets for fossil fuel-generated
energy consumption reduction; and (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. Projects involving multiple
new buildings would need to submit
separate petitions for each building if
they do not meet criteria (1)–(3)
previously listed. For component-level
major renovations, the 2014 SNOPR
stated that DOE is considering allowing
bundling petitions that are of the same
component and building type.
In response, DOE received one
comment on bundling of petitions. AGA
and other utilities supported the
concept of bundling of petitions. (AGA
et al No. 18 at p.6). DOE agrees that
bundling of petitions for buildings of
the same building type and function in
a similar location is a useful feature of
the process and bundling is being
proposed. DOE encourages agencies to
submit a singular petition with all of the
information on groups of similarly
situated buildings to help streamline the
review process.
3. DOE Review Process
The 2010 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
previous discussion, DOE will concur
with the agency’s conclusion and notify
the agency in writing. If DOE does not
concur, it will forward its reasons to the
petitioning agency with suggestions as
to how the fossil fuel-generated energy
consumption percentage reduction
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requirement may be achieved. 75 FR
63412.
Several comments were submitted
about the DOE review process in the
NOPR. In response, DOE recognized that
agencies want assurance that DOE will
respond to petitions in a timely manner
in order to avoid project delays. For
petitions for new construction, DOE
proposes to make a best effort to notify
an agency in 45 calendar days of
submittal whether a petition is
approved or rejected, granted the
petition is complete. If DOE rejects the
petition, it would include its reasons for
doing so in its response to the agency.
Additionally, for new construction, DOE
proposed 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 impracticable 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. For petitions for downward
adjustments to the requirements
applicable to major renovations, DOE
proposed that the downward adjustment
would be granted upon submission of
specified certifications. The necessary
certifications are discussed in greater
detail in section III.D.5 in this
document. In response, DOE received
five comments on its review process.
The Department of Defenses
(‘‘DOD’s’’) Office of the Under Secretary
of Defense (‘‘OUSD’’) 11 and the Office of
the Deputy Under Secretary of Defense
(Installations and Environment)
(‘‘ODUSD(I&E)’’) stated that regardless
of project type, all petitions for
downward adjustments should be
deemed approved upon submittal to
DOE. (OUSD–AF 9 at p.6 and
ODUSD(I&E) 16 at p.4) In response, DOE
notes that approving all petitions for
downward adjustment without
reviewing the petitions to ensure that
the Secretary of DOE concurs with the
petition would be contrary to the
statutory requirement that DOE review
and concur on each petition submitted.
(42 U.S.C. 6834(a)(3)(D)(i)(II)) The
American Gas Association (‘‘AGA’’) and
other utilities commented that they
support DOE’s proposed review process
11 OUSD submitted 4 sets of comments—one set
on behalf of the Air Force (marked ‘‘-AF’’), another
set on behalf of the U.S. Army Corps of Engineers
(marked ‘‘-USACE’’), a third set on behalf of the
Army (marked ‘‘-Army’’), and a final set on behalf
of OUSD’s Facility Energy and Privatization
director (marked ‘‘-FEP’’).
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(AGA et al No. 18 at p.6) and they also
requested that DOE consider the costeffectiveness of fossil fuel energy
reduction measures to the greatest
extent possible in the downward
reduction process. (AGA et al No. 17 at
p.6) In response, DOE notes that the
statutory requirement for adjusting the
fossil fuel-generated energy
consumption requirements is technical
impracticability. As previously noted,
DOE will consider cost and costeffectiveness through that lens;
however, cost or cost-effectiveness
impacts cannot be the only reason a
petition is approved. (See section E.1 of
this proposed rule for additional
discussion of cost.)
Earthjustice noted that despite
mention in the preamble, the regulatory
text of the 2014 SNOPR fails to
recognize that, to evaluate petitions for
downward adjustments, DOE needs a
description of all technologies and
practices that an agency evaluated and
rejected, including a justification as to
why the technologies were not included
in the design. (Earthjustice No. 4 at p.3)
DOE agrees with Earthjustice with
respect to documentation requirements
for downward petitions for whole
building renovations. This
documentation should be identical to
that required for new construction
petitions. This change was made in this
proposed rule. DOE expanded the type
of building specific information that
DOE is requesting in petitions as
requested by Earthjustice but is doing so
in a manner that allows DOE to analyze
what possibilities each petitioner has to
meet the rule in its renovation. DOE
changed the rule to require the director
of FEMP to approve each petition after
reviewing this building-specific
information.
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.
DOE received several comments on
the NOPR and provided more detailed
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petition requirements in the 2014
SNOPR that allows DOE to determine
more comprehensively whether a
downward adjustment should be
approved. DOE proposed a modified
provision that requires a Federal agency
to demonstrate that the requested
adjustment represents the largest
feasible fossil fuel reduction that the
agency can reasonably achieve by
providing evidence that the agency
included all life-cycle cost-effective
energy efficiency and on-site renewable
energy measures in the design and by
providing a description of the
technologies and practices that the
agency evaluated and rejected,
including a justification as to why these
technologies and practices were
rejected. Finally, agencies would also be
permitted to provide additional
information they think will help justify
the request for downward adjustment.
As per the 2014 SNOPR, petitions
would also be required to include the
maximum allowable fossil fuelgenerated energy consumption for the
proposed building, the estimated fossil
fuel-generated energy consumption of
the proposed building, the total
estimated project cost, 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, expected number of occupants
and occupant schedule, and functional
needs of the building, and any other
information the agency deems pertinent.
The building energy Federal agencies
must describe includes the HVAC
systems and service water heating
system, as well as the loads in the
building, including any specialized
process, specialized research loads,
electric vehicle charging stations,
alternatively fueled vehicle fueling
stations, and emergency backup
generators. 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.
DOE received one comment on the
information required in petitions for
new construction. An individual
commenter suggested that to discourage
excessive petitions for downward
adjustment, DOE should require a
comprehensive analysis of the selected
and rejected energy efficiency measures
or technologies, similar to methods
employed in a Level II energy audit as
defined by the American Society of
Heating, Refrigeration and AirConditioning Engineers (‘‘ASHRAE’’). In
response, DOE notes that Federal
agencies are already required to perform
audits on 25 percent of their buildings
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every year under the provisions of
section 432 of EISA 2007. DOE believes
that dividing major renovations into
three categories that each have their
own threshold for DOE granting of a
petition for downward adjustment (e.g.,
whole building renovations, system
level renovation, and component level
renovations) should keep the number of
petitions submitted by agencies to a
minimum.
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.
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
will be provided at a level equal to the
energy efficiency level that would be
achieved were the proposed building
designed to meet the baseline energy
efficiency standard applicable to new
construction in 10 CFR parts 433 or 435.
DOE proposed in the 2014 SNOPR that
this adjustment would be available to
GSA-tenant agencies with significant
control over building design and DOE
re-affirms this proposal.
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, at minimum, 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 costeffective.
For major renovations that are limited
to system or component level retrofits,
DOE proposed in the 2014 SNOPR to
provide downward adjustments at a
level equal to the energy efficiency level
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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, i.e., ENERGY STAR or FEMP
designated products. For system level
renovations, agencies would adopt as
renovation requirements the relevant
parts of new building baseline energy
efficiency standard in 10 CFR part 433
or 435 on a system level (i.e., brought up
to the performance requirements of the
individual sections of ASHRAE 90.1–
2019 (chapters 5–10)) where appropriate
and cost effective, and additionally
would follow the replacement guidance
for all equipment that is included in the
renovation with ENERGY STAR or
FEMP designated products, per 10 CFR
part 436, subpart C. For component
level retrofits, agencies will replace all
equipment that is part of the renovation
with ENERGY STAR or FEMP
designated products as defined at 10
CFR part 436, subpart C.
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.
6. Make Information Publicly Available
DOE received some comments on the
NOPR that petitions for downward
adjustment should be made publicly
available on a DOE website.
Commenters stated that making this
information publicly available would
make the process transparent, hold
agencies accountable, and could reduce
unsupported petitions. As a result of
these comments on the NOPR, DOE
proposed in the 2014 SNOPR to report
petition summary level information in
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the DOE Annual Report to Congress on
Federal Energy Management and
Conservation Programs (See
www.energy.gov/about/budget.htm).
DOE received two comments on its
proposal. Earthjustice commented that
to ensure public accountability, all
petitions and DOE responses should be
made publicly available. (Earthjustice
No. 9 at p.7) An individual commenter
commented that transparency is an
important factor that will influence the
effectiveness of this regulation and
create accountability for meeting the
target requirements and deadlines.
(Dirogene No. 3 at p.1) DOE agrees that
transparency is important and will
publish any petitions that are filed,
deemed complete, and screened for
national security reasons for downward
adjustment that are received (subject to
potential filtering for national security
reasons) on the DOE website.
7. Narrow the Use of Petitions
DOE received a few comments on the
NOPR related to narrowing the use of
petitions for downward adjustment. In
response to these comments, DOE
proposed changes in the 2014 SNOPR
that would reduce the number of
petitions submitted for downward
adjustment and improve the content of
submitted petitions. DOE expanded the
number of building types covered in
Tables A–1a and A–1b to A–2a and A–
2b in appendix A of part 433 and added
a methodology for calculating the
maximum allowable fossil fuelgenerated consumption values for
buildings with process loads. This was
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,
the 2014 SNOPR proposed that
additional information be provided as
part of the petition process, including
that Federal agencies must: (1)
demonstrate that the requested
adjustment represents the largest
feasible fossil fuel reduction that can be
achieved, given agency mission and
building purpose; and (2) 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
requires Federal agencies to provide
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.
DOE received no comments on this
topic in the 2014 SNOPR, so DOE
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proposes to require evidence of these
additional criteria in petitions for
downward adjustments.
8. GSA Tenant Agencies
ECPA, as amended, does not provide
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 GSA tenant that
is 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.
In response to the NOPR, DOE
received one comment on this issue
stating that allowing GSA tenant
agencies to petition for downward
adjustments contradicts the statute. DOE
noted in the 2014 SNOPR that while the
statute prohibits GSA from petitioning
DOE for a downward adjustment, it
makes no reference to GSA tenant
agencies. DOE will allow GSA tenant
agencies that have significant control
over building design to submit a
petition. In such cases, it will be the
tenant agency, not GSA, that is making
the design choices that will allow for
compliance with the rule. Allowing
GSA tenant agencies to submit a
petition for downward adjustment will
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.
DOE received one comment on this
topic in response to the 2014 SNOPR.
Earthjustice commented that DOE may
not allow tenants of GSA buildings to
petition for downward adjustments of
the fossil fuel reductions because the
statute specifically excludes only GSA
from the downward adjustment petition
process, expanding the number of
buildings eligible for such adjustments
in a manner that directly contravenes
the plain statutory language and that is
arbitrary and capricious. (Earthjustice
No. 8 at p.6) DOE reiterates that while
the statute prohibits GSA from
petitioning DOE for a downward
adjustment, it makes no reference to
GSA tenant agencies. The statute allows
for an ‘‘agency’’ to petition for a
downward adjustment. The term
‘‘Federal agency’’ means any
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department, agency, corporation, or
other entity or instrumentality of the
executive branch of the Federal
Government, including the United
States Postal Service, the Federal
National Mortgage Association, and the
Federal Home Loan Mortgage
Corporation. 42 U.S.C. 6832(5). As the
commenter notes, the statute only
prohibits GSA from submitting a
petition. Thus, in cases in which the
tenant agency exercises significant
control of design choices in the
building, and GSA does not, it makes
little sense to prohibit the tenant agency
form petitioning for an adjustment
where the statute does not expressly
require it. Moreover, these petitions are
still subject to the same criteria and
review process as other petitions and
would need to justify any downward
adjustment in accordance with such.
Accordingly, in this SNOPR, DOE has
decided to continue to allow GSA
tenant agencies to petition in those
cases where GSA tenants have design
control.
9. Other Relevant Comments
In this category, DOE received two
comments on the 2014 SNOPR.
Earthjustice commented that it is
unnecessary to limit the scope of major
renovations covered by the rule to the
extent that the renovation permits
compliance with applicable
requirements. Earthjustice argues that as
the rule does not apply to unaltered
portions of buildings or buildings
systems that are undergoing major
renovations it is not necessary to further
limit the scope. Moreover, because ‘‘the
scope of the renovation’’ is not a defined
term, it may be subject to a broad
interpretation by agencies subject to the
fossil fuel reduction requirement.
(Earthjustice No. 5 at p.4)
In response, DOE also notes that this
rule is not the only requirement that
mandates that Agencies implement and
upgrade their facilities. Per 42 U.S.C.
8253(f), agencies are required to
complete their annual comprehensive
energy and water evaluation for
approximately 25 percent of their
covered facilities each calendar year and
through those evaluations agencies will
identify and plan for significant updates
and modifications to those covered
facilities. This proposed rule is not the
appropriate vehicle for requiring
significant facility upgrades beyond the
portions being replaced.
ODUSD(I&E) also commented that
requiring individual renovation projects
that have difficulty in meeting the
requirements, (regardless of size,
renovation type, scope, funding,
climatic conditions, etc.) to petition
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DOE for downward adjustment may
pose significant challenges.
(ODUSD(I&E) No. 1 at p.1) DOE
recognizes that petition submittals may
add burden for agencies undertaking
major renovations in buildings.
However, EISA provides no recourse to
agencies other than petitioning DOE for
major renovations subject to the scope
of these standards. As noted previously,
pursuant to the intent indicated by
EISA, DOE construes the term ‘‘major
renovations’’ broadly to include projects
for which agencies can practicably
implement the energy efficiency and
fossil fuel reduction goals of ECPA and
EISA, including component and system
level renovations subject to the $2.5
million threshold. Accordingly,
agencies will need to submit a petition
to adjust the relevant reduction targets
for such projects. DOE notes that, in this
SNOPR, DOE is proposing to make best
efforts to complete review of petitions
within 45 calendar days of receipt for
new construction and major building
retrofits and 20 calendar days for
component level retrofits for adjustment
consideration. DOE believes this will
help obviate any burden experienced by
agencies that submit petitions.
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E. Impacts of the Rule
As part of the 2014 SNOPR, DOE
requested comments on the impacts of
the proposed rule. DOE received
comments in two categories—Cost
Impacts and Other Impacts.
1. Cost Impacts
In response to the 2014 SNOPR, DOE
received eight comments on cost
impacts. Several comments
recommended referring to the Office of
Management and Budget (‘‘OMB’’)
Circular A–94 to the rule. In response,
DOE notes that while OMB Circular A–
94 is an important document, section
544 of the National Energy Conservation
Policy Act (‘‘NECPA’’), as amended by
section 441 of EISA 2007, directed DOE
to establish practical and effective
present value methods for estimating
and comparing life-cycle costs for
Federal buildings, based on capital and
operating costs during a period of the
expected life of the building’s energy
system or 40 years, whichever is shorter.
See 42 U.S.C. 8254. Further, Federal
agencies must use the DOE-established
methods in the design of new Federal
buildings and the application of energy
conservation measures to existing
Federal buildings. Id. at (b)(1). DOE
established life-cycle cost analyses
methodologies and procedures in 10
CFR part 436, subpart A. Federal
agencies are already using the
methodologies and procedures in 10
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CFR part 436, subpart A when meeting
the energy efficiency obligations in 10
CFR parts 433 and 435. To ensure
consistency across Federal buildings
regulations, DOE will continue to use
the same methodologies and
procedures.
Other comments suggested that the
life-cycle costs of implementing new
requirements under the fossil energy
reduction rule are underestimated and
that costs for compliance should be
more closely examined. In response to
these comments, DOE based its costs on
the best available estimates it had at the
time.
Several comments stated that while
the 2014 SNOPR explicitly did not
consider costs, because of the
obligations imposed by the statute,
exorbitant additional expenditures
remain unjustified. Further comments
implied that because of the inherent
efficiency of natural gas used directly on
site, the overall impact of displacing
natural gas use with electrically
powered alternatives will be an increase
in total GHG emissions, a decrease in
energy productivity of Federal
buildings, and increased energy costs to
Federal agencies and ultimately to
taxpayers. In response, DOE notes that
had Congress intended for DOE to
consider costs in establishing the fossil
fuel use reduction targets in this rule or
in adjudicating petitions it would have
specified to do so. Instead, Congress
directed DOE to use the specific
reduction targets contained in 42 U.S.C.
6834(a)(3)(d)(i)(I), and base DOE’s
petition adjudication decisions on
agency determinations of technical
impracticability.
However, while DOE did not consider
costs in setting the reduction targets or
petition requirements, as part of its
obligations under Executive Order
12866 to inform the public of the
impacts of the proposed rule, DOE
analyzed the costs and benefits of the
rule proposed in the 2014 SNOPR and
in this proposed rule, and has
tentatively concluded that the rule as a
whole saves both site energy and lifecycle cost.
Other commenters also requested that
DOE present its construction cost
increases as a percentage of total cost on
both a year and cumulative basis and
provide more detail about DOE’s
assumptions underlying the analysis.
The commenters further requested that
DOE also explain why its year 2020
costs and beyond are relatively constant,
stating that they believe that compliance
costs will grow much more significantly
as permitted fossil fuel energy
consumption nears zero. All
assumptions used in the RIA are
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78397
documented in the RIA document. The
costs for year 2020 and beyond are
relatively constant because DOE
assumed that by 2020, agencies would
be able to achieve the maximum
estimated savings for major renovations
by that time.
Another comment was made that a
problem with the cost estimate is that
the RIA makes no reference to life cycle
costs, even though section 109 of Energy
Policy Act of 2005 (‘‘EPAct 2005’’)
requires technologies employed be
life-cycle cost- effective. (ODUSD(I&E)
No. 4 at p.1) DOE notes that section 109
of EPAct 2005 amended section 305 of
ECPA, which was later amended by
section 433 of EISA, which provides the
authority for this rulemaking. The
amendments made by section 433 of
EISA did not include requirements or
references to life-cycle cost-effectiveness
with respect to the fossil fuel-generated
energy consumption reduction targets of
EISA section 433. If Congress intended
for life-cycle cost-effectiveness to be
considered as part of these reduction
targets, it would have specifically stated
so in section 433 of EISA as it did in the
amendments in section 109 of EPAct
2005. Moreover, DOE does not see a
conflict between this rule and the
Federal building energy efficiency rules
in 10 CFR parts 433 and 435 in terms
of life-cycle cost-effectiveness.
2. Other Impacts
DOE also received eighteen comments
on other impacts of the rule. One
comment stated this rule is an action
that would have a significant adverse
effect on energy, and therefore DOE
must prepare a Statement of Energy
Effects pursuant to E.O. 13211. See 79
FR 61722. In response, DOE states that
this rule is not a significant energy
action requiring a Statement of Energy
Effects pursuant to E.O. 13211, because
it is not expected to have a significant
adverse effect on the supply,
distribution, or use of energy. According
to the Office of Management and
Budget, ‘‘adverse effects’’ requiring a
statement under E.O. 13211 include
significant (1) reductions in the
production or supply of crude oil, coal,
natural gas, or other fuel; (2) increases
in energy use; or (3) increases in the cost
of energy production or distribution.
The current action implements a
statutory mandate to reduce fossil fuel
energy use in Federal buildings. As
such, this action cannot reasonably be
expected to reduce the production or
supply of fuel, increase energy use, or
significantly increase the cost of energy
production.
Several other comments suggested
that the proposed mandate is not only
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costly and impractical, but also
infeasible, not flexible enough, or
absolutely unattainable. In response,
DOE notes that DOE’s rule is based
directly on Congressionally mandated
language in section 433 of EISA 2007,
which governs fossil fuel-generated
energy consumption. Per the statute,
however, the rule does allow for the
downward adjustments of the required
reductions in some cases.
Other comments supported the rule,
by pointing out that this rule presents
DOE with a significant opportunity not
only to reduce the Federal
Government’s own energy costs and
environmental footprint, but also to
influence the design of both state and
local government buildings as well as
all new residential and commercial
buildings. Therefore, this proposed
rulemaking is an opportunity for the
Federal Government to use its large
purchasing power to drive and
transform markets for greater efficiency
and reduced fossil fuel consumption in
all buildings. Two additional supportive
comments commended DOE for working
with stakeholders to craft the 2014
SNOPR and pointed out that the rule
will increase the ability to design and
build facilities that use less energy, save
energy, save taxpayers money, and
protect the environment; and also that
stakeholders from varying industries
have been working with the Department
of Energy to implement this rule in a
way that is smart, efficient, and
effective, noting that some have argued
that these targets are not achievable, but
building and sustainability
professionals are already succeeding in
making Federal facilities meet
sustainability targets, including DOE’s
new Research Support Facilities
(‘‘RSF’’) in Colorado, which opened in
2010. More importantly, private sector
owners are increasingly adopting these
technologies and strategies for their
buildings.
DOE also received six comments on
the use of the social cost of carbon
(‘‘SCC’’). DOE is presenting monetized
benefits in accordance with the
applicable Executive Orders and DOE
would reach the same tentative
conclusion presented in this SNOPR in
the absence of the social cost of
greenhouse gases, including the
February 2021 Interim Estimates
presented by the Interagency Working
Group on the Social Cost of Greenhouse
Gases.
F. Guidance and Other Topics
DOE requested specific comment in
the 2010 NOPR and 2014 SNOPR on
what additional training and guidance
would help agencies meet the
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reductions called for by this statute.
DOE received a single comment on this
topic in the 2014 SNOPR. That
comment focused on the fact that DOE
had not included implementation of
sub-metering as a requirement for new
Federal buildings and major renovations
for Federal buildings because the
compulsory implementation of submetering should alleviate future stresses
related to clarification of major
renovations, improve accuracy of
process load baselines for future Federal
building construction, and aid in
verification of building simulation
models developed during the design
stage (especially since they are enforced
under this rule for current and future
projects). The commenter further stated
that dissemination of sub-metering in
Federal buildings is instrumental in
achieving an intelligent grid capable of
improving delivered power quality and
inducing energy efficient behavior from
building owners and operators. In
response, DOE notes that agencies are
already subject to certain metering and
advanced metering requirements. 42
U.S.C. 8253(e). DOE has issued metering
guidance for Federal agencies in
accordance with the Energy Policy Act
of 2005, EISA 2007, and the Presidential
Memorandum ‘‘Federal Leadership on
Energy Management’’. See
www.energy.gov/eere/femp/articles/doereleases-Federal-building-meteringguidance for more details. DOE notes
this guidance addresses metering, and
not sub-metering, in accordance with
Congressional and Presidential
direction. Neither sub-metering nor
metering is expressly mentioned in
section 433 of EISA 2007. Therefore,
those topics are not addressed in this
SNOPR.
IV. Methodology, Analytical Results,
and Conclusion
DOE acknowledges exchanging onsite fossil fuel generated energy for
reliance on the electric grid, which may
still be generating energy with fossil
fuels, doesn’t necessarily lead to an
immediate reduction in emissions of
GHGs and SO2 and in some cases (and
as a whole) may result in increased
energy costs. However, this proposed
rule is intended to prepare federal
buildings for a green energy future. By
ensuring that federal buildings are
designed—either from the ground up, or
when being renovated—to rely on the
electric grid, the rule ensures that longterm, as the grid integrates more carbon
free energies, emissions will be reduced.
In addition, DOE expects emerging and
improving technological advancements
in electric equipment such as heat
pumps will lead to additional and
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dramatic site energy savings further
improving the emissions and cost
savings cases for this rule.
A. Cost-Effectiveness
DOE’s assumptions and methodology
for the cost-effectiveness of this rule are
built upon the cost-effectiveness
analysis of ASHRAE Standard 90.1–
2019 conducted by DOE’s State building
energy codes program,12 as well as
DOE’s Environmental Assessment (EA)
for this proposed rulemaking.13 As
described in the EA, DOE identified a
rate of new Federal commercial
construction of 13.3 million square feet
per year with a distribution of building
types as shown in Table IV.1. Starting
in the year 2030, section 205(c)(ii) of
Executive Order 14057, ‘‘Catalyzing
Clean Energy Industries and Jobs
Through Federal Sustainability.’’
(December 8, 2021) requires to ‘‘design
new construction and modernization
projects greater than 25,000 gross square
feet to be net-zero emissions by 2030’’.
This effectively reduces the impact of
this rule to apply to new construction
and major renovation projects that fall
above the cost threshold but are also
below 25,000 gross square feet. For the
year 2030 and beyond the estimated
new Federal commercial and multifamily high-rise residential building
construction volume per year will be 2.2
million square feet per year with a
distribution of building types as shown
in Table IV.2. The distribution of
building types is based on an extraction
of the latest 10 years of new
construction data entered into the
Federal Real Property Portfolio
Management System (‘‘FRPP MS’’) that
meets the required cost threshold of the
proposed rule for cases both before and
after the 25,000 Sf minimum triggering
E.O. 14057 compliance.14 Additionally
DOE identified an estimated rate of
federal major renovation projects that
would be influenced by this rule. To do
so DOE utilized data from the Federal
Compliance Tracking System (‘‘CTS’’)
where agencies report data on building
efficiency improvement projects. The
12 See DOE’s analysis of the cost savings of the
2016 and 2019 ASHRAE 90.1 Standards at
www.energycodes.gov/sites/default/files/2020-07/
90.1-2016_National_Cost-Effectiveness.pdf and
www.energycodes.gov/sites/default/files/2021-07/
90.1-2019_National_Cost-Effectiveness.pdf,
respectively.
13 The Environmental Assessment (EA) (DOE/EA–
2165) is entitled, ‘‘Environmental Assessment for
Final Rule, 10 CFR part 433, ‘Energy Efficiency
Standards for New Federal Commercial and MultiFamily High-Rise Residential Buildings’ Baseline
Standards Update’’. The EA may be found in the
docket for this proposed rulemaking and at
www.energy.gov/node/472482.
14 See www.realpropertyprofile.gov/FRPPMS/
FRPP_Login.
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data from CTS was queried to include
only those projects which would meet
the cost threshold and have impacts on
site fossil fuel energy consumption. As
not all agencies are compliant in
reporting data into CTS, results were
scaled up to account for agencies out of
compliance. CTS does not supply data
on the types of buildings for the
reported projects, as such the
distribution of eligible federal buildings
for a renovation that would meet the
cost threshold was applied to the
estimated project square footage. DOE
identified a rate of new Federal major
renovation construction of 1.36 million
square feet per year with a distribution
of building types as shown in Table
IV.1. Starting in the year 2030, section
205(c)(ii) of Executive Order 14057
‘‘Catalyzing Clean Energy Industries and
Jobs Through Federal Sustainability.’’
(December 8, 2021) requires agencies to
‘‘design new construction and
modernization projects greater than
25,000 gross square feet to be net-zero
emissions by 2030’’. This part of the
Executive Order effectively reduces the
impact of this rule to apply only to new
construction and major renovation
projects that fall above the cost
threshold but are also below 25,000
gross square feet. Taking this into
account for the year 2030 and beyond,
the estimated new Federal commercial
and multi-family high-rise residential
building major renovation construction
volume per year will be 0.4 million
square feet per year with a distribution
of building types as shown in Table IV.1
78399
and Table IV.2 of this document. These
tables also show the prototype buildings
incorporated into computer simulations
that are used to estimate energy use in
each building type. DOE derived these
prototype buildings from 16 building
types in 17 climate zones 15 using its
Commercial Prototype Building
models.16 Of the 16 prototype buildings,
DOE developed costs for 6 prototype
buildings to determine the cost
effectiveness of ASHRAE Standard
90.1–2016 and ASHRAE Standard 90.1–
2019. DOE then extracted the costeffectiveness information for those
prototype buildings and weighted those
values as appropriate to obtain an
average cost effectiveness value for
building types found in the Federal
commercial sector.
TABLE IV.1—NEW FEDERAL COMMERCIAL AND HIGH-RISE MULTI-FAMILY CONSTRUCTION VOLUME BY BUILDING TYPE FOR
BUILDINGS CONSTRUCTED IN YEARS 2025–2029
Fraction
of Federal
construction
volume
(by floor area)
(%)
Building type
Office ...............................................
Dormitories and Barracks ...............
17.77
14.57
School .............................................
Service ............................................
Other Institutional Uses ..................
Hospital ...........................................
Warehouses ....................................
Laboratories ....................................
All Other ..........................................
Outpatient Healthcare Facility .........
Industrial ..........................................
Child Care Center ...........................
Communications Systems ..............
Prisons and Detention Centers .......
Family Housing ...............................
Navigation and Traffic Aids .............
Land Port of Entry ...........................
Border/Inspection Station ................
Facility Security ...............................
Data Centers ...................................
Museum ..........................................
Comfort Station/Restrooms .............
Public Facing Facility ......................
Aviation Security Related ................
Post Office ......................................
15.65
15.16
5.76
7.80
2.95
4.24
2.74
5.00
1.63
0.89
1.42
0.18
1.06
0.53
0.68
0.64
0.25
0.34
0.74
0.01
0.02
0.00
0.00
Assumed BECP prototypes for energy savings
Small Office, Medium Office, Large Office ..........
Small Hotel, Mid-rise Apartment, High-rise Apartment.
Secondary School ................................................
Stand-alone Retail, Non-refrigerated Warehouse
None * ...................................................................
Hospital ................................................................
Non-Refrigerated Warehouse ..............................
Medium Office, Hospital .......................................
None .....................................................................
Outpatient Healthcare ..........................................
None .....................................................................
Primary School .....................................................
None .....................................................................
None .....................................................................
Mid-rise Apartment ...............................................
None .....................................................................
Non-refrigerated Warehouse ...............................
Small Office, Non-refrigerated Warehouse ..........
Small Office ..........................................................
None .....................................................................
None .....................................................................
Non-refrigerated Warehouse ...............................
Stand-alone Retail ...............................................
Small Office ..........................................................
Stand-alone Retail ...............................................
Assumed BECP prototypes for
cost effectiveness
Small Office, Large Office.
Small Hotel, Mid-rise Apartment.
Primary School.
Stand-alone Retail.
None.
Small Office, Large Office.
None.
Small Office, Large Office.
None.
Small Office.
None.
Primary School.
None.
None.
Mid-rise Apartment.
None.
None.
Small Office.
Small Office.
None.
None.
None.
Stand-alone Retail.
Small Office.
Stand-alone Retail.
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* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building types, with other institutional
uses, warehouses, and all other being the largest Federal building types with no reliable mapping. As described in this section, DOE considered
energy savings and costs for these unmapped Federal building types to be equivalent to the weighted energy savings and cost for the mapped
Federal building types.
15 Briggs, R.S., R.G. Lucas, and Z.T. Taylor. 2003.
‘‘Climate classification for building energy codes
and standards: Part 1—Development Process.’’
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ASHRAE Transactions 109(1): 109:121. American
Society of Heating, Refrigerating and AirConditioning Engineers. Atlanta, Georgia.
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16 DOE’s prototype buildings are described at
www.energycodes.gov/prototype-building-models.
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TABLE IV.2—NEW FEDERAL COMMERCIAL AND HIGH-RISE MULTI-FAMILY CONSTRUCTION VOLUME BY BUILDING TYPE FOR
BUILDINGS CONSTRUCTED IN YEARS 2030–2054
Fraction
of Federal
construction
volume
(by floor area)
(%)
Building type
Office ...............................................
Dormitories and Barracks ...............
14.24
4.02
School .............................................
Service ............................................
Other Institutional Uses ..................
Hospital ...........................................
Warehouses ....................................
Laboratories ....................................
All Other ..........................................
Outpatient Healthcare Facility .........
Industrial ..........................................
Child Care Center ...........................
Communications Systems ..............
Prisons and Detention Centers .......
Family Housing ...............................
Navigation and Traffic Aids .............
Land Port of Entry ...........................
Border/Inspection Station ................
Facility Security ...............................
Data Centers ...................................
Museum ..........................................
Comfort Station/Restrooms .............
Public Facing Facility ......................
Aviation Security Related ................
Post Office ......................................
10.88
18.34
12.63
2.97
6.88
4.37
5.58
7.66
2.05
2.67
0.87
0.26
1.49
1.95
0.99
0.36
1.36
0.19
0.10
0.03
0.09
0.00
0.00
Assumed BECP prototypes for
cost effectiveness
Assumed BECP prototypes for energy savings
Small Office, Medium Office ................................
Small Hotel, Mid-rise Apartment, High-rise Apartment.
Secondary School ................................................
Stand-alone Retail, Non-refrigerated Warehouse
None * ...................................................................
Hospital ................................................................
Non-Refrigerated Warehouse ..............................
Medium Office, Hospital .......................................
None .....................................................................
Outpatient Healthcare ..........................................
None .....................................................................
Primary School .....................................................
None .....................................................................
None .....................................................................
Mid-rise Apartment ...............................................
None .....................................................................
Non-refrigerated Warehouse ...............................
Small Office, Non-refrigerated Warehouse ..........
Small Office ..........................................................
None .....................................................................
None .....................................................................
Non-refrigerated Warehouse ...............................
Stand-alone Retail ...............................................
Small Office ..........................................................
Stand-alone Retail ...............................................
Small Office, Large Office.
Small Hotel, Mid-rise Apartment.
Primary School.
Stand-alone Retail.
None.
Small Office, Large Office.
None.
Small Office, Large Office.
None.
Small Office.
None.
Primary School.
None.
None.
Mid-rise Apartment.
None.
None.
Small Office.
Small Office.
None.
None.
None.
Stand-alone Retail.
Small Office.
Stand-alone Retail.
* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building types, with other institutional
uses, warehouses, and all other being the largest Federal building types with no reliable mapping. As described in this section, DOE considered
energy savings and costs for these unmapped Federal building types to be equivalent to the weighted energy savings and cost for the mapped
Federal building types.
DOE has determined incremental
construction first cost information for
the building types and climate zones
analyzed for buildings compliant with
this proposed rule (‘‘Clean Energy Rule
Compliant’’ buildings) versus ASHRAE
Standard 90.1–2019 (see Table IV.3).17
TABLE IV.3—INCREMENTAL CONSTRUCTION FIRST COST (2021$) FOR ASHRAE STANDARD 90.1–2019 VS. FOSSIL FUEL
COMPLIANT BUILDING DESIGN
ASHRAE climate zone *
Prototype
Value
2A
Small Office ..................................
Large Office ..................................
Stand-alone Retail ........................
Primary School .............................
Small Hotel ...................................
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Mid-rise Apartment .......................
First
$/ft2
First
$/ft2
First
$/ft2
First
$/ft2
First
$/ft2
First
$/ft2
Cost ......................................
...............................................
Cost ......................................
...............................................
Cost ......................................
...............................................
Cost ......................................
...............................................
Cost ......................................
...............................................
Cost ......................................
...............................................
3A
$673
0.12
261,781
0.52
19,608
0.79
(126,946)
(1.72)
(104,866)
(2.43)
(18,343)
(0.54)
3B
$584
0.11
268,194
0.54
20,240
0.82
(121,994)
(1.65)
(104,624)
(2.42)
(17,490)
(0.52)
$515
0.09
196,408
0.39
19,740
0.80
(116,139)
(1.57)
(104,396)
(2.42)
(18,113)
(0.54)
4A
$1,666
0.30
354,808
0.71
21,563
0.87
(94,722)
(1.28)
(101,194)
(2.34)
(12,445)
(0.37)
5A
$641
0.12
223,553
0.45
19,363
0.78
(122,894)
(1.66)
(103,044)
(2.38)
(25,126)
(0.74)
* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capital cost
and reduction of venting required for onsite combustion.
17 Note that the values in Table IV.3 have been
adjusted to reflect 2021$ from the table that appears
in DOE’s determination of energy savings for
Standard 90.1–2016, which were in 2018$. This
adjustment was made using the GDP deflator value
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to correct for inflation between 2018 and 2021.
Organization for Economic Co-operation and
Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank
of St. Louis; fred.stlouisfed.org/series/
PO 00000
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USAGDPDEFAISMEI, Updated February 17, 2021.
These values have also been adjusted to reflect the
same underlying economic assumptions as the 2019
version, and sales tax has also been removed.
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DOE used data from Table IV.3 to
calculate preliminary values for overall
incremental first cost of construction for
Federal commercial and high-rise,
multi-family residential buildings. DOE
calculated the incremental first cost of
the Federal building types based on the
DOE cost prototypes shown in the farright column of Table IV.1 of this
document. DOE then calculated the
weighted average incremental cost for
mapped Federal building types based on
their corresponding BECP prototypes,
which represent an estimated 79.3
percent of new Federal construction.
This weighted incremental cost was
assigned to un-mapped Federal building
types, and a total weighted incremental
cost was calculated by multiplying the
incremental cost for each Federal
building type by the fraction of Federal
construction shown in Table IV.1.
The national incremental first cost for
building types was developed by
multiplying the average (across climate
zones) incremental first cost of the
prototypes (determined from the DOE
State building energy codes program
ASHRAE Standard 90.1 costeffectiveness analysis) by the fraction of
the Federal sector construction volume
shown in Table IV.1, and then
multiplying that by the total estimate of
Federal new construction floorspace.18
DOE estimates that total first cost
outlays for new Federal buildings will
be less under Clean Energy Rule
compliant designs than ASHRAE
Standard 90.1–2019, primarily due to
lower HVAC equipment costs for some
building types (See Table IV.3). The
resulting total incremental first cost
estimate is a savings of $8.62 million
per year. The average first cost decrease
78401
is $1.86 per square foot. These first cost
decreases are a result of the lower
capital costs of the assumed electric
equipment types as dictated in the
ASHRAE and IECC energy codes (as
mandated in 10 CFR part 433 and 10
CFR part 435 and are the baseline for
this modified building efficiency
standard). Minimally compliant electric
equipment was assumed in the
proposed case as hitting the 30% better
than baseline performance goal as
generally required by regulation and
does include a cost effectiveness caveat
that can reduce the goal down to
minimal compliance. As can be seen in
Table IV.4, most building types switch
their space heating systems from a fossil
fuel burning system over to an electric
resistance-based system. DOE seeks
comment on the efficiency of the
electric equipment used in its analyses.
TABLE IV.4—BREAKDOWN OF PROPOSED HEATING SYSTEM BY BUILDING PROTYPE
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Building prototype
Yearly
constructed
SF—Post
2030
(%)
Yearly
constructed
SF—Pre 2030
(%)
Baseline gas
unit efficiency
Proposed electric
unit efficiency
Space heat notes
Convert using AFUE for gas furnace and AFUE Estimate
for Electric Furnace.
Convert using pre 1/1/2023 Et estimated Et for Furnaces
assuming 0.75% casing loss.
Convert using Et Estimate for boilers.
Convert using national weight heat pump efficiency from
office analysis.
1⁄4 Furnaces, 3⁄4 boilers. Convert both to electric equivalents.
Convert using Et Estimate for boilers.
Convert using Et Estimate for boilers.
Convert using Et Estimate for boilers.
Convert using AFUE for Gas and AFUE Estimate for
Electric.
Note Model uses a 0.8 gas AFUE for office space, but
0.7925 for Fine storage and unit heater.
Convert using AFUE Estimate to residential HSPF.
Small Office ..................
12.8
14.8
0.81
99% Electric Boilers ...........
Medium Office ..............
2.6
5.5
0.79
99% Electric Furnaces .......
Large Office ..................
Stand-Alone Retail .......
0.0
13.2
2.3
8.8
0.82
0.79
99% Electric Boilers ...........
1.76 COP RTU Heat Pump
Primary School .............
3.8
1.0
0.81
Secondary School ........
Outpatient Health Care
Hospital ........................
Small Hotel ...................
15.5
10.9
8.9
0.4
18.1
5.8
12.7
1.2
0.82
0.82
0.82
0.81
99% 1⁄4 Furnaces, 3⁄4 boilers.
99% Electric Boilers ...........
99% Electric Boilers ...........
99% Electric Boilers ...........
99% Electric Furnaces .......
Warehouse ...................
24.4
13.1
0.79
99% Electric Furnaces .......
Mid-Rise Apartment .....
4.7
8.7
0.81
High-Rise Apartment ....
2.7
8.2
0.82
2.4 COP Residential Heat
Pump.
99% Electric Boilers ...........
Convert using Et Estimate for boilers.
An estimated 17.7 percent of the
projects would utilize heat pumps in
their proposed ‘‘all electric’’ case (those
that map to Stand Alone Retail and MidRise Apartment prototype models) with
assumed efficiency performance metrics
as noted. Service hot water systems
(when not already specified as an
electric system per 10 CFR parts 433
and 435 requirement) are similarly
assumed to be minimally compliant
electric resistance systems with 99
percent efficiencies. Cooking systems
where present are assumed to switch
from 40 percent efficient gas systems to
70 percent standard efficiency electric
systems.
It should be noted that in all cases
higher efficiency electric equipment is
available on the market, but the
statutory authority of this rule is limited
to total building reduction targets and
does not specify specific equipment
types or efficiency levels. An agency is
free to design a project per their own
site, cost, and usage specific needs,
while complying with the applicable
efficiency targets. As such, the analysis
presented in this SNOPR intends to
capture the base-level compliance cases
only. An agency is free and encouraged
to select higher efficiency equipment
(such as even higher efficiency heat
pumps and/or more widespread
adoption) as project details
accommodate. DOE encourages the
higher efficiency equipment to be
carefully considered by agencies as it
can often provide projects with a
lifecycle cost effective solution that
saves even more energy and emissions
(albeit usually with higher up-front
capital costs) than presented for base
compliance with this rule.
DOE is seeking comment with regard
to heat pump pricing, availability,
efficiency levels, and weather
incentivizing higher performing
equipment is likely to increase
utilization amongst federal facilities.
DOE also analyzed the relative impact
of the final rule on the first cost of new
constructed Federal buildings as a
18 For the Federal office building, the small and
large office prototype first costs were averaged. For
the Federal education building, the primary school
prototype first cost was used. For the Federal
dormitories/barracks building type, the small hotel
and mid-rise apartment prototype first costs were
averaged.
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percentage of the overall annual cost of
newly constructed Federal commercial
and high-rise buildings. In order to
estimate the total cost of construction
for new Federal buildings, DOE
obtained estimated construction costs
for new Federal commercial and highrise multifamily buildings were
obtained from RS Means (2020) 19 for
the six building types analyzed in DOE’s
cost-effectiveness report. These new
construction costs were weighted by the
percent of Federal floorspace to develop
an average cost of a new Federal
building of $198 per square foot, as
shown in Table IV.5. This average
construction cost may be multiplied by
the overall total of 19.54 million square
feet of new Federal construction per
year used in this rulemaking to estimate
the annual total cost of all new Federal
commercial and high-rise multi-family
construction of $3.86 billion. As
previously noted, first cost savings
associated with this rulemaking are
estimated at $8.62 million per year,
indicating a potential cost reduction in
new Federal construction costs of 0.223
percent ($8.62 million divided by $3.86
billion).
TABLE IV.5—FIRST COST OF TYPICAL NEW FEDERAL BUILDING IN $/ft2
Weight
(%)
Federal building type
Office ................................................................................................................................................
Barracks and Dormitories ................................................................................................................
School ..............................................................................................................................................
Service .............................................................................................................................................
Hospital ............................................................................................................................................
Laboratories .....................................................................................................................................
Outpatient Healthcare Facility .........................................................................................................
Child Care Center ............................................................................................................................
Family Housing >3 Stories ..............................................................................................................
Border/Inspection Station ................................................................................................................
Facility Security ................................................................................................................................
Aviation Security Related ................................................................................................................
Public Facing Facility .......................................................................................................................
Post Office .......................................................................................................................................
Remaining Federal Stock ................................................................................................................
Federal Average ..............................................................................................................................
20.74
14.85
14.33
13.31
5.57
4.37
3.35
1.18
0.68
0.49
0.31
0.01
0.05
0.01
20.75
100.00
First cost *
$210
217
225
116
200
200
220
225
218
220
220
220
116
116
198
198
Weighted
cost
$43.51
32.18
32.25
15.44
11.14
8.73
7.38
2.67
1.48
1.07
0.69
0.02
0.06
0.01
41.00
197.62
lotter on DSK11XQN23PROD with PROPOSALS4
* All building first cost data from RS Means 2020.
DOE determined that the total
incremental first cost estimate for
Federal buildings (as mapped to the
prototype buildings in Table IV.1) is a
savings of $139.4 million (at a 3 percent
discount rate) and a cost of $85.5
million (based on a 7 percent discount
rate), with an average first cost decrease
of $1.0 per square foot (at a 3 percent
discount rate) and $0.61 per square foot
(at a 3 percent discount rate).
For annualized energy cost savings,
DOE used a similar approach to that
used for incremental first cost. That is,
DOE developed the national annualized
energy cost savings 20 for building types
by multiplying the average (across
climate zones) energy cost savings
(determined from the DOE ASHRAE
Standard 90.1 cost-effectiveness
analysis) by the fraction of the Federal
sector construction volume shown in
Table IV.1, and then multiplying that by
the total estimate of Federal new
construction floorspace.21 Table IV.6 22
shows the annual energy cost savings by
prototype buildings for a Clean Energy
Rule compliant building compared to
ASHRAE Standard 90.1–2019. There are
increases in energy costs across the
board, this is because despite the
increases in equipment efficiency and
overall site energy savings the difference
between the cost of fossil fuels
(primarily natural gas) and purchased
electricity at a national level are too
high for the improvements to overcome.
The EIA AEO 2021 energy outlook rate
projections indicate that per the same
amount of site energy consumed,
electricity is about 4.3x more expensive
than natural gas, this number gradually
reduces over time per this projection
down to 3.2x by the year 2050.
As was done for the incremental cost
analysis, the 2019 energy cost savings
analysis was adjusted to use the same
underlying economic assumptions as
the Clean Energy Rule Compliant
version, including fuel prices, fuel price
escalations, labor and material costs,
and the removal of sales tax. The
resulting total annualized energy cost
impacts for the Clean Energy Rule
affected buildings’ 14.7 million square
feet of annual construction for years
2025–2029 and 2.6 million square feet
of annual construction for years 2030–
2054 was estimated to be an additional
cost of $10.6 million/yr (at a 3 percent
discount rate) and $8.3 million/yr (at a
7 percent discount rate). The annualized
energy cost impacts were estimated to
be an additional $2.28 per square foot
(at a 3 percent discount rate) and ¥1.78
per square foot (at a 3 percent discount
rate). Note the annual energy cost
impacts are for one year of Federal
commercial and high-rise multi-family
residential construction and that those
19 RS Means. 2020. RS Means Building
Construction Cost Data, 78th Ed. Construction
Publishers & Consultants. Norwell, MA.
20 The energy costs used were the national
average energy costs used by ASHRAE in the
development of Standard 90.1–2019. To quote the
cost-effectiveness analysis report ‘‘Energy rates used
to calculate the energy costs from the modeled
energy usage were $0.98/therm for fossil fuel and
$0.1063/kWh for electricity. These rates were used
for the 90.1–2019 energy analysis and derived from
the EIA data. These were the values approved by
the SSPC 90.1 for cost-effectiveness for the
evaluation of individual addenda during the
development of 90.1–2019.’’
21 For the Federal office building, the small and
large office prototype LCCs were weighted by
estimated fraction of small and large offices
observed in the FRPP MS database over the past 10
years of construction. For the Federal education
building, the primary school prototype LCC was
used. For the Federal dorm/barracks building type,
the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
22 Note that the values in Table IV.5 have been
adjusted to reflect 2020$ from the table that appears
in DOE’s determination of energy savings for
Standard 90.1–2016, which were in 2018$. This
adjustment was made using the GDP deflator value
to correct for inflation between 2018 and 2020.
Organization for Economic Co-operation and
Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank
of St. Louis; fred.stlouisfed.org/series/
USAGDPDEFAISMEI, Updated February 17, 2021.
These values have also been adjusted to reflect the
same underlying economic assumptions as the 2019
version.
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78403
impacts accumulate over the evaluation
period.
TABLE IV.6—ANNUALIZED ENERGY COSTS (2021$) FOR ASHRAE STANDARD 90.1–2019 VS. FOSSIL FUEL COMPLIANT
BUILDING DESIGN
Total
prototype
usage
(%)
Building prototype
Annualized energy
cost savings
(M$2021)
3%
Discount rate
Annualized energy cost
savings intensity
(M$2021/SF)
7%
Discount rate
3%
Discount rate
7%
Discount rate
Small Office ......................................................................
Medium Office ..................................................................
Large Office .....................................................................
Stand-Alone Retail ...........................................................
Strip Mall ..........................................................................
Primary School .................................................................
Secondary School ............................................................
Outpatient Health Care ....................................................
Hospital ............................................................................
Small Hotel .......................................................................
Large Hotel ......................................................................
Quick-service Restaurant .................................................
Full-service Restaurant ....................................................
Mid-Rise Apartment .........................................................
High-Rise Apartment ........................................................
Non-Refrigerated Warehouse ..........................................
14.78
5.53
2.26
8.76
0.00
1.02
18.06
5.76
12.68
1.18
0.00
0.00
0.00
8.95
7.90
13.12
($1.57)
(0.59)
(0.24)
(0.93)
0.00
(0.11)
(1.91)
(0.61)
(1.34)
(0.12)
0.00
0.00
0.00
(0.95)
(0.84)
(1.39)
($1.23)
(0.46)
(0.19)
(0.73)
0.00
(0.08)
(1.50)
(0.48)
(1.05)
(0.10)
0.00
0.00
0.00
(0.74)
(0.66)
(1.09)
($0.34)
(0.13)
(0.05)
(0.20)
0.00
(0.02)
(0.41)
(0.13)
(0.29)
(0.03)
0.00
0.00
0.00
(0.20)
(0.18)
(0.30)
($0.26)
(0.10)
(0.04)
(0.16)
0.00
(0.02)
(0.32)
(0.10)
(0.23)
(0.02)
0.00
0.00
0.00
(0.16)
(0.14)
(0.23)
Total ..........................................................................
100.00
(10.60)
(8.30)
(2.28)
(1.78)
Note: Negative numbers represent an increase cost.
For LCC net savings, DOE used a
similar approach to that used for
incremental first cost and first year
energy cost savings. That is, DOE
developed the national annual LCC net
savings 23 for the entire rule by
multiplying the average (across climate
zones) LCC net savings (determined
from the DOE ASHRAE Standard 90.1
cost-effectiveness analysis) by the
fraction of the Federal sector
construction volume shown in Table
IV.1, and then multiplying that by the
total estimate of Federal new
construction floorspace.24 Table IV.7
shows annual LCC net savings by
prototype buildings for the Clean Energy
Rule Compliant Case compared to
ASHRAE Standard 90.1–2019. As was
done for the incremental cost analysis,
the 2019 LCC analysis was adjusted to
use the same underlying economic
assumptions as the Clean Energy Rule
Compliant Case, including fuel prices,
fuel price escalations, labor and material
costs, and the removal of sales tax. The
resulting total LCC net savings for 14.7
million square feet of annual
construction for years 2025–2029 and
2.6 million square feet of annual
construction for years 2030–2054 was
estimated to be a cost of $56.13 million
(at a 3 percent discount rate) and a cost
of $4.07 million (based on a 7 percent
discount rate). The average LCC net
impacts in year 1 was estimated to be
a cost of $12.09 million (at a 3 percent
discount rate) and a cost of $0.88
million (based on a 7 percent discount
rate. Note the annual LCC savings are
for one year of Federal commercial and
high-rise multi-family residential
construction and that those savings
would accumulate over the LCC
evaluation period. For the purpose of
this analysis, DOE relied on a 30-year
period.25
TABLE IV.7—ANNUAL NET LIFE-CYCLE COST (LCC) (2021$) FOR ASHRAE STANDARD 90.1–2019 VS. FOSSIL FUEL
COMPLIANT BUILDING DESIGN
Total
prototype
usage
(%)
Building prototype
lotter on DSK11XQN23PROD with PROPOSALS4
Small Office ......................................................................
Medium Office ..................................................................
Large Office .....................................................................
Stand-Alone Retail ...........................................................
23 The energy costs used were the national
average energy costs used by ASHRAE in the
development of Standard 90.1–2019. To quote the
cost-effectiveness analysis report ‘‘Energy rates used
to calculate the energy costs from the modeled
energy usage were $0.98/therm for fossil fuel and
$0.1063/kWh for electricity. These rates were used
for the 90.1–2019 energy analysis and derived from
the EIA data. These were the values approved by
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Cumulative LCC
cost savings,
(M$2021)
3%
Discount rate
14.78
5.53
2.26
8.76
7%
Discount rate
($8.30)
(3.10)
(1.27)
(4.92)
the SSPC 90.1 for cost-effectiveness for the
evaluation of individual addenda during the
development of 90.1–2019.’’
24 For the Federal office building, the small and
large office prototype LCCs were weighted by
estimated fraction of small and large offices
observed in the FRPP MS database over the past 10
years of construction. For the Federal education
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Annualized LCC cost savings,
annualized
(M$2021)
3%
Discount rate
($0.60)
(0.23)
(0.09)
(0.36)
($0.45)
(0.17)
(0.07)
(0.27)
7%
Discount rate
($0.13)
(0.05)
(0.02)
(0.08)
building, the primary school prototype LCC was
used. For the Federal dorm/barracks building type,
the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
25 Lavappa, P and J Kneifel. 2021. Energy Price
Indices and Discount Factors for Life-Cycle Cost
Analysis-2021 Annual Supplement to NIST
Handbook 135.
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TABLE IV.7—ANNUAL NET LIFE-CYCLE COST (LCC) (2021$) FOR ASHRAE STANDARD 90.1–2019 VS. FOSSIL FUEL
COMPLIANT BUILDING DESIGN—Continued
Total
prototype
usage
(%)
Building prototype
Cumulative LCC
cost savings,
(M$2021)
3%
Discount rate
Annualized LCC cost savings,
annualized
(M$2021)
7%
Discount rate
3%
Discount rate
7%
Discount rate
Strip Mall ..........................................................................
Primary School .................................................................
Secondary School ............................................................
Outpatient Health Care ....................................................
Hospital ............................................................................
Small Hotel .......................................................................
Large Hotel ......................................................................
Quick-service Restaurant .................................................
Full-service Restaurant ....................................................
Mid-Rise Apartment .........................................................
High-Rise Apartment ........................................................
Non-Refrigerated Warehouse ..........................................
0.00
1.02
18.06
5.76
12.68
1.18
0.00
0.00
0.00
8.95
7.90
13.12
0.00
(0.57)
(10.13)
(3.24)
(7.12)
(0.66)
0.00
0.00
0.00
(5.02)
(4.43)
(7.37)
0.00
(0.04)
(0.73)
(0.23)
(0.52)
(0.05)
0.00
0.00
0.00
(0.36)
(0.32)
(0.53)
0.00
(0.03)
(0.55)
(0.17)
(0.38)
(0.04)
0.00
0.00
0.00
(0.27)
(0.24)
(0.40)
0.00
(0.01)
(0.16)
(0.05)
(0.11)
(0.01)
0.00
0.00
0.00
(0.08)
(0.07)
(0.12)
Total ..........................................................................
100.00
(56.13)
(4.07)
(0.45)
(0.88)
lotter on DSK11XQN23PROD with PROPOSALS4
Note: Negative numbers represent an increase cost or disbenefit.
DOE also conducted a net benefits
and costs analysis using a 30-year
analysis period and an assumed
building lifetime of 30 years. The
building lifetime assumption was made
to correspond with availability of
underlying data from the costeffectiveness analysis conducted by
DOE’s State building energy codes
program.
DOE calculated the net present value
(‘‘NPV’’) of the change in equipment
cost and reduced operating cost
associated with the difference between
the Clean Energy Rule compliant case
and ASHRAE 90.1–2019. The NPV is
the value in the present of a time-series
of costs and savings, equal to the
present value of savings in operating
cost minus the present value of the
increased total equipment cost.
DOE determined the total increased
equipment cost for each year of the
analysis period (2024–2053) using the
incremental construction cost described
previously. DOE determined the present
value of operating cost savings for each
year from the beginning of the analysis
period to the year when all Federal
buildings constructed by 2054 have
been retired, assuming a 30-year lifetime
of the building.
The average annual operating cost
includes the costs for energy, repair, or
replacement of building components
(e.g., heating and cooling equipment,
lighting, and envelope measures), and
maintenance of the building. DOE
determined the per-unit annual increase
in operating cost based on the
differences in energy costs plus
replacement and maintenance cost
savings, which were calculated in the
underlying cost-effectiveness analysis
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by DOE’s State building energy codes
program. While DOE used the
methodology and prices described
above to calculate first year energy cost
savings and LCC net savings, for the
NPV calculations, DOE determined the
per-unit annual savings in operating
cost by multiplying the per square foot
annual electricity and natural gas
savings in energy consumption by the
appropriate energy price from EIA’s
AEO2021.26 DOE forecasted energy
prices based on projected average
annual price changes in EIA’s AEO2021
to develop the operating cost savings
through the analysis period.
DOE uses national discount rates to
calculate national NPV. DOE estimated
NPV using both a 3-percent and a 7percent real discount rate, in accordance
with the Office of Management and
Budget’s guidance to Federal agencies
on the development of regulatory
analysis, particularly section E therein:
Identifying and Measuring Benefits and
Costs.27 The NPV is the sum over time
of the discounted net savings.
The present value of increased
equipment costs is the annual total cost
increase in each year (the difference
between The Clean Energy Rule
Compliant Case and ASHRAE 90.1–
2019), discounted to the present, and
summed throughout the analysis period
(2024 through 2053) plus 30-year
26 DOE—U.S. Department of Energy. 2022.
Annual Energy Outlook 2022 with Projections to
2050. Washington, DC. Available at www.eia.gov/
outlooks/aeo/.
27 Office of Management and Budget. OMB
Circular A–4, Regulatory Analysis. 2003. OMB:
Washington, DC, September 17, 2003.
www.whitehouse.gov/sites/whitehouse.gov/files/
omb/circulars/A4/a-4.pdf.
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lifetime. Because new construction is
held constant through the analysis
period, the installed cost is constant.
The present value of savings in
operating cost is the annual savings in
operating cost (the difference between
The Clean Energy Rule Compliant Case
and ASHRAE 90.1–2019), discounted to
the present and summed through the
analysis period (2024 through 2053)
plus 30-year lifetime. Savings are
decreases in operating cost associated
with the higher energy efficiency
associated with buildings designed to
the Clean Energy Rule Compliant Case
compared to ASHRAE 90.1–2019. Total
annual savings in operating cost are the
savings per square foot multiplied by
the number of square feet that survive
in a particular year through the lifetime
of the buildings constructed in the last
year of the analysis period.
B. Emissions Analysis
The emissions analysis consists of
two components. The first component
estimates the effect of potential Federal
building energy standards on power
sector and site (where applicable)
combustion emissions of CO2, NOX,
SO2, and Hg. The second component
estimates the impacts of potential
Federal building energy standards on
emissions of two additional greenhouse
gases, CH4 and N2O, as well as the
changes to emissions of other gases due
to ‘‘upstream’’ activities in the fuel
production chain. These upstream
activities comprise extraction,
processing, and transporting fuels to the
site of combustion.
The analysis of electric power sector
emissions of CO2, NOX, SO2, and Hg
uses emissions factors intended to
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represent the marginal impacts of the
change in electricity consumption
associated with Federal building energy
standards. The methodology is based on
results published for the AEO, including
a set of side cases that implement a
variety of efficiency-related policies.
The analysis presented in this notice
uses projections from AEO2022. Power
sector emissions of CH4 and N2O from
fuel combustion are estimated using
Emission Factors for Greenhouse Gas
Inventories published by the
Environmental Protection Agency
(‘‘EPA’’).28
Until 2030, the on-site operation of
construction subject to this proposed
rule allows combustion of fossil fuels
and results in emissions of CO2, NOX,
SO2, CH4, and N2O where these
products are used. Site emissions of
these gases were estimated using
Emission Factors for Greenhouse Gas
Inventories and, for NOX and SO2
emissions intensity factors from an EPA
publication.29
FFC upstream emissions, which
include emissions from fuel combustion
during extraction, processing, and
transportation of fuels, and ‘‘fugitive’’
emissions (direct leakage to the
atmosphere) of CH4 and CO2, are
estimated based on the methodology
described in chapter 1 of the NOPR
TSD.
The emissions intensity factors are
expressed in terms of physical units per
MWh or MMBtu of site energy savings.
For power sector emissions, specific
emissions intensity factors are
calculated by sector and end use. Total
emissions changes are estimated using
the energy savings calculated in the
national impact analysis with energy
savings derived from a load shifting
modeling analysis of ASHRAE
Prototype models.
lotter on DSK11XQN23PROD with PROPOSALS4
1. Air Quality Regulations Incorporated
in DOE’s Analysis
DOE’s no-new-standards case for the
electric power sector reflects the AEO,
which incorporates the projected
impacts of existing air quality
regulations on emissions. AEO2022
generally represents current legislation
and environmental regulations,
including recent government actions,
that were in place at the time of
28 Available at www.epa.gov/sites/production/
files/2021-04/documents/emission-factors_
apr2021.pdf (last accessed July 12, 2021).
29 U.S. Environmental Protection Agency.
External Combustion Sources. In Compilation of Air
Pollutant Emission Factors. AP–42. Fifth Edition.
Volume I: Stationary Point and Area Sources.
Chapter 1. Available at https://www.epa.gov/airemissions-factors-and-quantification/ap-42compilation-air-emissions-factors (last accessed
April 15, 2022).
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preparation of AEO2022, including the
emissions control programs discussed in
the following paragraphs.30
SO2 emissions from affected electric
generating units (‘‘EGUs’’) are subject to
nationwide and regional emissions capand-trade programs. Title IV of the
Clean Air Act sets an annual emissions
cap on SO2 for affected EGUs in the 48
contiguous States and the District of
Columbia (D.C.). (42 U.S.C. 7651 et seq.)
SO2 emissions from numerous States in
the eastern half of the United States are
also limited under the Cross-State Air
Pollution Rule (‘‘CSAPR’’). 76 FR 48208
(Aug. 8, 2011). CSAPR requires these
States to reduce certain emissions,
including annual SO2 emissions, and
went into effect as of January 1, 2015.31
AEO2022 incorporates implementation
of CSAPR, including the update to the
CSAPR ozone season program emission
budgets and target dates issued in 2016.
81 FR 74504 (Oct. 26, 2016).32
Compliance with CSAPR is flexible
among EGUs and is enforced through
the use of tradable emissions
allowances. Under existing EPA
regulations, for states subject to SO2
emissions limits under CSAPR, excess
SO2 emissions allowances resulting
from the lower electricity demand
caused by the adoption of an efficiency
standard could be used to permit
offsetting increases in SO2 emissions by
another regulated EGU.
However, beginning in 2016, SO2
emissions began to fall as a result of the
Mercury and Air Toxics Standards
(‘‘MATS’’) for power plants. 77 FR 9304
30 For further information, see the Assumptions to
AEO2022 report that sets forth the major
assumptions used to generate the projections in the
Annual Energy Outlook. Available at www.eia.gov/
outlooks/aeo/assumptions/ (last accessed April 15,
2022).
31 CSAPR requires states to address annual
emissions of SO2 and NOX, precursors to the
formation of fine particulate matter (PM2.5)
pollution, in order to address the interstate
transport of pollution with respect to the 1997 and
2006 PM2.5 National Ambient Air Quality Standards
(‘‘NAAQS’’). CSAPR also requires certain states to
address the ozone season (May–September)
emissions of NOX, a precursor to the formation of
ozone pollution, in order to address the interstate
transport of ozone pollution with respect to the
1997 ozone NAAQS. 76 FR 48208 (Aug. 8, 2011).
EPA subsequently issued a supplemental rule that
included an additional five states in the CSAPR
ozone season program; 76 FR 80760 (Dec. 27, 2011)
(Supplemental Rule), and EPA issued the CSAPR
Update for the 2008 ozone NAAQS. 81 FR 74504
(Oct. 26, 2016).
32 In Sept. 2019, the D.C. Court of Appeals
remanded the 2016 CSAPR Update to EPA. In April
2021, EPA finalized the 2021 CSAPR Update which
resolved the interstate transport obligations of 21
states for the 2008 ozone NAAQS. 86 FR 23054
(April 30, 2021); see also, 86 FR 29948 (June 4,
2021) (correction to preamble). The 2021 CSAPR
Update became effective on June 29, 2021. The
release of AEO 2021 in February 2021 predated the
2021 CSAPR Update.
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78405
(Feb. 16, 2012). In the MATS final rule,
EPA established a standard for hydrogen
chloride as a surrogate for acid gas
hazardous air pollutants (‘‘HAP’’), and
also established a standard for SO2 (a
non-HAP acid gas) as an alternative
equivalent surrogate standard for acid
gas HAP. The same controls are used to
reduce HAP and non-HAP acid gas;
thus, SO2 emissions are being reduced
as a result of the control technologies
installed on coal-fired power plants to
comply with the MATS requirements
for acid gas. In order to continue
operating, coal power plants must have
either flue gas desulfurization or dry
sorbent injection systems installed. Both
technologies, which are used to reduce
acid gas emissions, also reduce SO2
emissions. Because of the emissions
reductions under the MATS, it is
unlikely that excess SO2 emissions
allowances resulting from the lower
electricity demand would be needed or
used to permit offsetting increases in
SO2 emissions by another regulated
EGU.
CSAPR also established limits on NOX
emissions for numerous States in the
eastern half of the United States.
Impacts from this Clean Energy Rule
would have little effect on NOX
emissions in those States covered by
CSAPR emissions limits if excess NOX
emissions allowances resulting from the
lower electricity demand could be used
to permit offsetting increases in NOX
emissions from other EGUs. In such
case, NOx emissions would remain near
the limit even if electricity generation
goes down. A different case could
possibly result, depending on the
configuration of the power sector in the
different regions and the need for
allowances, such that NOX emissions
might not remain at the limit in the case
of lower electricity demand. In this case,
Federal building standards might reduce
NOX emissions in covered States.
Despite this possibility, DOE has chosen
to be conservative in its analysis and
has maintained the assumption that
standards will not reduce NOX
emissions in States covered by CSAPR.
Federal building standards would be
expected to reduce NOX emissions in
the States not covered by CSAPR.
DOE estimated mercury emissions
reduction using emissions factors based
on AEO2022, which incorporates the
MATS.
C. Monetization of Emissions Changes
As part of the development of this
rule, for the purpose of complying with
the requirements of Executive Order
12866, DOE considered the estimated
monetary climate and health benefits
and disbenefits from the changes in
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emissions of CO2, CH4, N2O, NOX, and
SO2 that are expected to result from this
rule. DOE considered the emissions
changes expected to result over the
lifetime of buildings constructed in the
analysis period. This section
summarizes the basis for the values
used for monetizing the emissions
changes and presents the values
considered in this rule.
On March 16, 2022, the Fifth Circuit
Court of Appeals (No. 22–30087)
granted the federal government’s
emergency motion for stay pending
appeal of the February 11, 2022,
preliminary injunction issued in
Louisiana v. Biden, No. 21–cv–1074–
JDC–KK (W.D. La.). As a result of the
Fifth Circuit’s order, the preliminary
injunction is no longer in effect,
pending resolution of the federal
government’s appeal of that injunction
or a further court order. Among other
things, the preliminary injunction
enjoined the defendants in that case
from ‘‘adopting, employing, treating as
binding, or relying upon’’ the interim
estimates of the social cost of
greenhouse gases—which were issued
by the Interagency Working Group on
the Social Cost of Greenhouse Gases on
February 26, 2021—to monetize the
benefits and disbenefits of changing
greenhouse gas emissions. In the
absence of further intervening court
orders, DOE will revert to its approach
prior to the injunction and present
monetized benefits and disbenefits
where appropriate and permissible
under law.
1. Monetization of Greenhouse Gas
Emissions
For the purpose of complying with
the requirements of Executive Order
12866, DOE estimates the monetized
benefits and disbenefits of the changes
in emissions of CO2, CH4, and N2O by
using a measure of the social cost (‘‘SC’’)
of each pollutant (e.g., SC-CO2). These
estimates represent the monetary value
of the net harm to society associated
with a marginal increase in emissions of
these pollutants in a given year, or the
benefit of avoiding that increase. These
estimates are intended to include (but
are not limited to) climate-changerelated changes in net agricultural
productivity, human health, property
damages from increased flood risk,
disruption of energy systems, risk of
conflict, environmental migration, and
the value of ecosystem services. DOE
exercises its own judgment in
presenting monetized climate benefits
and disbenefits as recommended by
applicable Executive orders and
guidance, and DOE would reach the
same conclusion presented in this
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notice in the absence of the social cost
of greenhouse gases, including the
February 2021 Interim Estimates
presented by the Interagency Working
Group on the Social Cost of Greenhouse
Gases.
DOE estimated the climate benefits
and disbenefits of CO2, CH4, and N2O
changes (i.e., SC-GHGs) using the
estimates presented in the Technical
Support Document: Social Cost of
Carbon, Methane, and Nitrous Oxide
Interim Estimates under Executive
Order 13990 published in February
2021 by the Interagency Working Group
on the Social Cost of Greenhouse Gases
(IWG) (IWG, 2021).33 The SC-GHGs is
the theoretically appropriate value to
use in conducting benefit-cost analyses
of policies that affect CO2, N2O and CH4
emissions. As a member of the IWG
involved in the development of the
February 2021 SC-GHG TSD, the DOE
agrees that the interim SC-GHG
estimates represent the most appropriate
estimate of the SC-GHG until revised
estimates have been developed
reflecting the latest, peer-reviewed
science.
The SC-GHGs estimates presented
here were developed over many years,
using transparent process, peerreviewed methodologies, the best
science available at the time of that
process, and with input from the public.
Specifically, in 2009, an interagency
working group (‘‘IWG’’) that included
the DOE and other executive branch
agencies and offices was established to
ensure that agencies had access to the
best available information when
quantifying the benefits of reducing CO2
emissions in benefit-cost analyses. The
IWG published estimates of the social
cost of carbon (‘‘SC-CO2’’) in 2010 that
were developed from an ensemble of
three widely cited integrated assessment
models (‘‘IAMs’’) that estimate climate
damages using highly aggregated
representations of climate processes and
the global economy combined into a
single modeling framework. The three
IAMs were run using a common set of
input assumptions in each model for
future population, economic, and CO2
emissions growth, as well as
equilibrium climate sensitivity
(‘‘ECS’’)—a measure of the globally
averaged temperature response to
increased atmospheric CO2
33 See Interagency Working Group on Social Cost
of Greenhouse Gases, Technical Support Document:
Social Cost of Carbon, Methane, and Nitrous Oxide.
Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at:
www.whitehouse.gov/wp-content/uploads/2021/02/
TechnicalSupportDocument_
SocialCostofCarbonMethaneNitrousOxide.pdf (last
accessed March 17, 2021).
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concentrations. These estimates were
updated in 2013 based on new versions
of each IAM. In August 2016 the IWG
published estimates of the social cost of
methane (‘‘SC-CH4’’) and nitrous oxide
(‘‘SC-N2O’’) using methodologies that
are consistent with the methodology
underlying the SC-CO2 estimates. The
modeling approach that extends the
IWG SC-CO2 methodology to non-CO2
GHGs has undergone multiple stages of
peer review. The SC-CH4 and SC-N2O
estimates were developed by Marten et
al. (2015) and underwent a standard
double-blind peer review process prior
to journal publication.
In 2015, as part of the response to
public comments received to a 2013
solicitation for comments on the SC-CO2
estimates, the IWG announced a
National Academies of Sciences,
Engineering, and Medicine review of the
SC-CO2 estimates to offer advice on how
to approach future updates to ensure
that the estimates continue to reflect the
best available science and
methodologies. In January 2017, the
National Academies released their final
report, Valuing Climate Damages:
Updating Estimation of the Social Cost
of Carbon Dioxide, and recommended
specific criteria for future updates to the
SC-CO2 estimates, a modeling
framework to satisfy the specified
criteria, and both near-term updates and
longer-term research needs pertaining to
various components of the estimation
process (National Academies, 2017).34
Shortly thereafter, in March 2017,
President Trump issued Executive
Order 13783, which disbanded the IWG,
withdrew the previous TSDs, and
directed agencies to ensure SC-CO2
estimates used in regulatory analyses
are consistent with the guidance
contained in OMB’s Circular A–4,
‘‘including with respect to the
consideration of domestic versus
international impacts and the
consideration of appropriate discount
rates’’ (E.O. 13783, Section 5(c)).
Benefit-cost analyses following E.O.
13783 used SC-GHG estimates that
attempted to focus on the U.S.-specific
share of climate change damages as
estimated by the models (and so did not
reflect many pathways by which
physical impacts outside the United
States affect the welfare of U.S. citizens
and residents) and were calculated
using two default discount rates
recommended by Circular A–4, 3
34 See National Academies of Sciences,
Engineering, and Medicine. 2017. Valuing Climate
Damages: Updating Estimation of the Social Cost of
Carbon Dioxide. Washington, DC: The National
Academies Press. doi.org/10.17226/24651.
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percent and 7 percent.35All other
methodological decisions and model
versions used in SC-GHG calculations
remained the same as those used by the
IWG in 2010 and 2013, respectively.
On January 20, 2021, President Biden
issued Executive Order 13990, which reestablished the IWG and directed it to
develop updated estimates of the social
cost of carbon and other greenhouse
gases that reflect the best available
science and the recommendations of the
National Academies (2017). The IWG
was tasked with first reviewing the SCGHG estimates currently used in Federal
analyses and publishing interim
estimates within 30 days of the E.O. that
reflect the full impact of GHG
emissions, including by taking global
damages into account.
As noted previously, DOE
participated in the IWG but has also
independently evaluated the interim
SC-GHG estimates published in the
February 2021 TSD and determined
they are appropriate to use here to
estimate the climate benefits and
disbenefits associated with this
proposed rule. DOE and other agencies
intend to undertake a fuller update of
the SC-GHG estimates that takes into
consideration the advice of the National
Academies (2017) and other recent
scientific literature. The DOE has also
evaluated the supporting rationale of the
February 2021 TSD, including the
studies and methodological issues
discussed therein, and concludes that it
agrees with the rationale for these
estimates presented in the TSD and
summarized below.
The February 2021 SC-GHG TSD
provides a complete discussion of the
IWG’s initial review conducted under
E.O. 13990. In particular, the IWG found
that the SC-GHG estimates used under
E.O. 13783 fail to reflect the full impact
of GHG emissions in multiple ways.
First, the IWG found that the SC-GHG
estimates used under E.O. 13783 fail to
fully capture many climate impacts that
affect the welfare of U.S. citizens and
residents, and those impacts are better
reflected by global measures of the SC35 DOE regulatory analyses under E.O. 13783
included sensitivity analyses based on global SCGHG values and using a lower discount rate of
2.5%. OMB Circular A–4 (2003) recognizes that
special considerations arise when applying
discount rates if intergenerational effects are
important. In the IWG’s 2015 Response to
Comments, OMB—as a co-chair of the IWG—made
clear that ‘‘Circular A–4 is a living document,’’ that
‘‘the use of 7 percent is not considered appropriate
for intergenerational discounting,’’ and that ‘‘[t]here
is wide support for this view in the academic
literature, and it is recognized in Circular A–4
itself.’’ OMB, as part of the IWG, similarly
repeatedly confirmed that ‘‘a focus on global SCC
estimates in [regulatory impact analyses] is
appropriate’’ (IWG 2015).
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GHG. Examples of effects omitted from
the E.O. 13783 estimates include direct
effects on U.S. citizens, assets, and
investments located abroad, supply
chains, U.S. military assets and interests
abroad, and tourism, and spillover
pathways such as economic and
political destabilization and global
migration that can lead to adverse
impacts on U.S. national security,
public health, and humanitarian
concerns. In addition, assessing the
benefits of U.S. GHG mitigation
activities requires consideration of how
those actions may affect mitigation
activities by other countries, as those
international mitigation actions will
provide a benefit to U.S. citizens and
residents by mitigating climate impacts
that affect U.S. citizens and residents. A
wide range of scientific and economic
experts have emphasized the issue of
reciprocity as support for considering
global damages of GHG emissions. If the
United States does not consider impacts
on other countries, it is difficult to
convince other countries to consider the
impacts of their emissions on the United
States. The only way to achieve an
efficient allocation of resources for
emissions reduction on a global basis—
and so benefit the U.S. and its citizens—
is for all countries to base their policies
on global estimates of damages. As a
member of the IWG involved in the
development of the February 2021 SCGHG TSD, DOE agrees with this
assessment and, therefore, in this rule
DOE centers attention on a global
measure of SC-GHG. This approach is
the same as that taken in DOE regulatory
analyses from 2012 through 2016. A
robust estimate of climate damages to
U.S. citizens and residents that accounts
for the myriad of ways that global
climate change reduces the net welfare
of U.S. populations does not currently
exist in the literature. As explained in
the February 2021 TSD, existing
estimates are both incomplete and an
underestimate of total damages that
accrue to the citizens and residents of
the U.S. because they do not fully
capture the regional interactions and
spillovers discussed previously, nor do
they include all of the important
physical, ecological, and economic
impacts of climate change recognized in
the climate change literature. As noted
in the February 2021 SC-GHG TSD, the
IWG will continue to review
developments in the literature,
including more robust methodologies
for estimating a U.S.-specific SC-GHG
value, and explore ways to better inform
the public of the full range of carbon
impacts. As a member of the IWG, DOE
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will continue to follow developments in
the literature pertaining to this issue.
Second, the IWG found that the use of
the social rate of return on capital (7
percent under current OMB Circular A–
4 guidance) to discount the future
benefits and disbenefits of reducing
GHG emissions inappropriately
underestimates the impacts of climate
change for the purposes of estimating
the SC-GHG. Consistent with the
findings of the National Academies
(2017) and the economic literature, the
IWG continued to conclude that the
consumption rate of interest is the
theoretically appropriate discount rate
in an intergenerational context (IWG
2010, 2013, 2016a, 2016b),36 and
recommended that discount rate
uncertainty and relevant aspects of
intergenerational ethical considerations
be accounted for in selecting future
discount rates.
Furthermore, the damage estimates
developed for use in the SC-GHG are
estimated in consumption-equivalent
terms, and so an application of OMB
Circular A–4’s guidance for regulatory
analysis would then use the
consumption discount rate to calculate
the SC-GHG. DOE agrees with this
assessment and will continue to follow
developments in the literature
pertaining to this issue. DOE also notes
that while OMB Circular A–4, as
published in 2003, recommends using
3% and 7% discount rates as ‘‘default’’
values, Circular A–4 also reminds
agencies that ‘‘different regulations may
call for different emphases in the
analysis, depending on the nature and
complexity of the regulatory issues and
the sensitivity of the benefit and cost
36 Interagency Working Group on Social Cost of
Carbon. Social Cost of Carbon for Regulatory Impact
Analysis under Executive Order 12866. 2010.
United States Government. (Last accessed April 15,
2022.) www.epa.gov/sites/default/files/2016-12/
documents/scc_tsd_2010.pdf; Interagency Working
Group on Social Cost of Carbon. Technical Update
of the Social Cost of Carbon for Regulatory Impact
Analysis Under Executive Order 12866. 2013. (Last
accessed April 15, 2022.) www.federalregister.gov/
documents/2013/11/26/2013-28242/technicalsupport-document-technical-update-of-the-socialcost-of-carbon-for-regulatory-impact; Interagency
Working Group on Social Cost of Greenhouse Gases,
United States Government. Technical Support
Document: Technical Update on the Social Cost of
Carbon for Regulatory Impact Analysis-Under
Executive Order 12866. August 2016. (Last accessed
January 18, 2022.) www.epa.gov/sites/default/files/
2016-12/documents/sc_co2_tsd_august_2016.pdf;
Interagency Working Group on Social Cost of
Greenhouse Gases, United States Government.
Addendum to Technical Support Document on
Social Cost of Carbon for Regulatory Impact
Analysis under Executive Order 12866: Application
of the Methodology to Estimate the Social Cost of
Methane and the Social Cost of Nitrous Oxide.
August 2016. (Last accessed January 18, 2022.)
www.epa.gov/sites/default/files/2016-12/
documents/addendum_to_sc-ghg_tsd_august_
2016.pdf.
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estimates to the key assumptions.’’ On
discounting, Circular A–4 recognizes
that ‘‘special ethical considerations arise
when comparing benefits and costs
across generations,’’ and Circular A–4
acknowledges that analyses may
appropriately ‘‘discount future costs and
consumption benefits . . . at a lower
rate than for intragenerational analysis.’’
In the 2015 Response to Comments on
the Social Cost of Carbon for Regulatory
Impact Analysis, OMB, DOE, and the
other IWG members recognized that
‘‘Circular A–4 is a living document’’ and
‘‘the use of 7 percent is not considered
appropriate for intergenerational
discounting. There is wide support for
this view in the academic literature, and
it is recognized in Circular A–4 itself.’’
Thus, DOE concludes that a 7%
discount rate is not appropriate to apply
to value the social cost of greenhouse
gases in the analysis presented in this
analysis. In this analysis, to calculate
the present and annualized values of
climate benefits and disbenefits, DOE
uses the same discount rate as the rate
used to discount the value of damages
from future GHG emissions, for internal
consistency. That approach to
discounting follows the same approach
that the February 2021 TSD
recommends ‘‘to ensure internal
consistency—i.e., future damages from
climate change using the SC-GHG at 2.5
percent should be discounted to the
base year of the analysis using the same
2.5 percent rate.’’ DOE has also
consulted the National Academies’ 2017
recommendations on how SC-GHG
estimates can ‘‘be combined in RIAs
with other cost and benefits estimates
that may use different discount rates.’’
The National Academies reviewed
‘‘several options,’’ including
‘‘presenting all discount rate
combinations of other costs and benefits
with [SC-GHG] estimates.’’
As a member of the IWG involved in
the development of the February 2021
SC-GHG TSD, DOE agrees with this
assessment and will continue to follow
developments in the literature
pertaining to this issue. While the IWG
works to assess how best to incorporate
the latest, peer reviewed science to
develop an updated set of SC-GHG
estimates, it recommended the interim
use of the mot SC-GHG estimates
developed by the IWG prior to the group
being disbanded in 2017. The estimates
rely on the same models and
harmonized inputs and are calculated
using a range of discount rates. As
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explained in the February 2021 SC-GHG
TSD, the IWG has recommended that
agencies to revert to the same set of four
values drawn from the SC-GHG
distributions based on three discount
rates as were used in regulatory analyses
between 2010 and 2016 and subject to
public comment. For each discount rate,
the IWG combined the distributions
across models and socioeconomic
emissions scenarios (applying equal
weight to each) and then selected a set
of four values recommended for use in
benefit-cost analyses: an average value
resulting from the model runs for each
of three discount rates (2.5 percent, 3
percent, and 5 percent), plus a fourth
value, selected as the 95th percentile of
estimates based on a 3 percent discount
rate. The fourth value was included to
provide information on potentially
higher-than-expected economic impacts
from climate change. As explained in
the February 2021 SC-GHG TSD, and
DOE agrees, this update reflects the
immediate need to have an operational
SC-GHG for use in regulatory benefitcost analyses and other applications that
was developed using a transparent
process, peer-reviewed methodologies,
and the science available at the time of
that process. Those estimates were
subject to public comment in the
context of dozens of proposed
rulemakings as well as in a dedicated
public comment period in 2013.
There are a number of limitations and
uncertainties associated with the SCGHG estimates. First, the current
scientific and economic understanding
of discounting approaches suggests
discount rates appropriate for
intergenerational analysis in the context
of climate change are likely to be less
than 3 percent, near 2 percent or
lower.37 Second, the IAMs used to
produce these interim estimates do not
include all of the important physical,
ecological, and economic impacts of
climate change recognized in the
climate change literature and the
science underlying their ‘‘damage
functions’’—i.e., the core parts of the
IAMs that map global mean temperature
changes and other physical impacts of
37 Interagency Working Group on Social Cost of
Greenhouse Gases (IWG). 2021. Technical Support
Document: Social Cost of Carbon, Methane, and
Nitrous Oxide Interim Estimates under Executive
Order 13990. February. United States Government.
Available at: 2014
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For the SNOPR, DOE estimated the
monetized value of NOX and SO2
emissions changes from electricity
generation using benefit-per-ton
estimates for that sector from the EPA’s
Benefits Mapping and Analysis
Program.41 DOE used EPA’s values for
PM2.5-related benefits associated with
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18,000
21,000
23,000
25,000
28,000
30,000
33,000
27,000
30,000
33,000
36,000
39,000
42,000
45,000
48,000
54,000
60,000
67,000
74,000
81,000
88,000
NOX and SO2 and for ozone-related
benefits associated with NOX for 2025,
2030, and 2040, calculated with
discount rates of 3 percent and 7
percent. DOE used linear interpolation
to define values for the years not given
in the 2025 to 2040 period; for years
beyond 2050 the values are held
constant.
DOE also estimated the monetized
value of NOX and SO2 emissions
SocialCostofCarbonMethaneNitrousOxide.pdf (last
accessed March 17, 2021).
41 Estimating the Benefit per Ton of Reducing
PM2.5 Precursors from 21 Sectors. www.epa.gov/
benmap/estimating-benefit-ton-reducing-pm25precursors-21-sectors.
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changes from site use of natural gas in
buildings impacted by this rule using
benefit-per-ton estimates from the EPA’s
Benefits Mapping and Analysis
Program. Although none of the sectors
covered by EPA refers specifically to
residential and commercial buildings,
the sector called ‘‘area sources’’ would
be a reasonable proxy for Federal
buildings.42 The EPA document
provides high and low estimates for
2025 and 2030 at 3- and 7-percent
discount rates.43 DOE used the same
linear interpolation and extrapolation as
it did with the values for electricity
generation.
DOE multiplied the emissions
changes (in tons) in each year by the
associated $/ton values, and then
discounted each series using discount
rates of 3 percent and 7 percent as
appropriate.
We request comment on how to
address the monetization of climate and
health benefits and disbenefits from this
proposal.
D. Conclusion
Table IV.10 provides DOE’s estimate
of cumulative emissions changes
expected to result from this rulemaking.
DOE acknowledges exchanging on-site
fossil fuel generated energy for reliance
on the electric grid, which may still be
generating energy with fossil fuels,
doesn’t necessarily lead to an immediate
reduction in emissions of GHGs and
SO2. However, it does prepare federal
buildings for a green energy future. By
ensuring that federal buildings are
designed—either from the ground up, or
when being renovated—to rely on the
electric grid, the rule ensures that longterm, as the grid integrates more
renewable energies, emissions will be
reduced.
TABLE IV.10—CUMULATIVE EMISSIONS CHANGES IN 2025–2084
Pollutant
Total
Primary (plant) Emissions Changes
CO2 (million metric tons) .....................................................................................................................................................................
Hg (tons) ..............................................................................................................................................................................................
NOX (thousand tons) ...........................................................................................................................................................................
SO2 (thousand tons) ............................................................................................................................................................................
CH4 (thousand tons) ............................................................................................................................................................................
N2O (thousand tons) ............................................................................................................................................................................
¥0.3
¥0.01
0.54
¥1.0
¥0.1
¥0.02
Upstream Emissions Changes
CO2 (million metric tons) .....................................................................................................................................................................
Hg (tons) ..............................................................................................................................................................................................
NOX (thousand tons) ...........................................................................................................................................................................
SO2 (thousand tons) ............................................................................................................................................................................
CH4 (thousand tons) ............................................................................................................................................................................
N2O (thousand tons) ............................................................................................................................................................................
0.1
¥0.00002
1.3
¥0.01
10.5
¥0.0004
Total Emissions Changes
CO2 (million metric tons) .....................................................................................................................................................................
Hg (tons) ..............................................................................................................................................................................................
NOX (thousand tons) ...........................................................................................................................................................................
SO2 (thousand tons) ............................................................................................................................................................................
CH4 (thousand tons) ............................................................................................................................................................................
N2O (thousand tons) ............................................................................................................................................................................
¥0.2
¥0.01
1.9
¥1.0
10.4
¥0.021
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Negative values refer to an increase in emissions.
Table IV.11 presents the present value
of monetized climate disbenefits
associated with the CO2 emissions
changes using the full set of SC-CO2
estimates described previously.
42 ‘‘Area sources’’ represents all emission sources
for which states do not have exact (point) locations
in their emissions inventories. Because exact
locations would tend to be associated with larger
sources, ‘‘area sources’’ would be fairly
representative of small, dispersed sources like
homes, businesses and office buildings.
43 ‘‘Area sources’’ are a category in the 2018
document from EPA, but are not used in the 2021
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document cited previously. See: www.epa.gov/sites/
default/files/2018-02/documents/
sourceapportionmentbpttsd_2018.pdf.
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TABLE IV.11—PRESENT VALUE OF MONETIZED CLIMATE DISBENEFITS FROM CHANGES IN CO2 EMISSIONS FOR CLEAN
ENERGY RULE CONSTRUCTION IMPACTS 2025–2054 WITH A 30-YEAR LIFETIME
SC-CO2 Case
Discount rate and statistics
5%
3%
2.5%
3%
Average
Average
Average
95th percentile
Million 2021$
Total .......................................................................................................................
¥2.3
¥9.4
¥14.3
¥28.3
Note: Negative numbers represent an increase cost or disbenefit. Climate benefits and disbenefits associated with CO2 emissions changes
occur over 2025–2070. DOE expects additional climate impacts to accrue from CO2 emissions changes post 2070, but a lack of available SCCO2 estimates for years beyond 2070 prevents DOE from monetizing these additional impacts in this analysis.
Table IV.12 presents the monetized
climate benefits associated with the
estimated CH4 emissions reduction, and
Table IV.13 presents the monetized
climate disbenefits associated with the
estimated changes in N2O emissions.
TABLE IV.12—PRESENT VALUE OF MONETIZED CLIMATE BENEFITS FROM CHANGES IN METHANE EMISSIONS FOR CLEAN
ENERGY RULE CONSTRUCTION IMPACTS 2025–2054 WITH A 30-YEAR LIFETIME
SC-CH4 Case
Discount rate and statistics
5%
3%
2.5%
3%
Average
Average
Average
95th percentile
Million 2021$
Total .......................................................................................................................
4.0
12.4
17.4
32.7
Note: Climate benefits and disbenefits associated with CH4 emissions changes occur over 2025–2070. DOE expects additional climate impacts to accrue from CH4 emissions changes post 2070, but a lack of available SC-CH4 estimates for years beyond 2070 prevents DOE from
monetizing these additional impacts in this analysis.
TABLE IV.13—PRESENT VALUE OF MONETIZED CLIMATE DISBENEFITS FROM CHANGES IN NITROUS OXIDE EMISSIONS FOR
CLEAN ENERGY RULE CONSTRUCTION IMPACTS 2025–2054 WITH A 30-YEAR LIFETIME
SC-N2O Case
Discount rate and statistics
5%
3%
2.5%
3%
Average
Average
Average
95th percentile
Million 2021$
Total .......................................................................................................................
¥0.1
¥0.3
¥0.4
¥0.7
lotter on DSK11XQN23PROD with PROPOSALS4
Note: Negative numbers represent an increase cost or disbenefit. Climate benefits and disbenefits associated with N2O emissions changes
occur over 2025–2070. DOE expects additional climate impacts to accrue from N2O emissions changes post 2070, but a lack of available SCN2O estimates for years beyond 2070 prevents DOE from monetizing these additional impacts in this analysis.
DOE is well aware that scientific and
economic knowledge about the
contribution of CO2 and other GHG
emissions to changes in the future
global climate and the potential
resulting damages to the global and U.S.
economy continues to evolve rapidly.
DOE, together with other Federal
agencies, will continue to review
methodologies for estimating the
monetary value of changes in CO2 and
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other GHG emissions. This ongoing
review will consider the comments on
this subject that are part of the public
record for this and other rulemakings, as
well as other methodological
assumptions and issues.
DOE also estimated the monetary
value of the health benefits and
disbenefits associated with changes in
NOX and SO2 emissions anticipated to
result from this rule. The dollar-per-ton
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values that DOE used are discussed in
section V.C of this document. Table
IV.14 presents the present value for NOX
emissions reduction calculated using 7percent and 3-percent discount rates,
and Table IV.15 presents similar results
for SO2 emissions increases. The results
in these tables reflect application of
EPA’s low dollar-per-ton values, which
DOE used to be conservative.
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TABLE IV.14—PRESENT VALUE OF NOX EMISSIONS REDUCTION
3% Discount rate
(low)
I
7% Discount rate
(low)
I
3% Discount rate
(high)
I
7% Discount rate
(high)
Million 2021$
Total .................................................................................
20.2
I
6.6
I
31.0
I
10.9
TABLE IV.15—PRESENT VALUE OF SO2 EMISSIONS INCREASE
3% Discount rate
(low)
I
7% Discount rate
(low)
I
3% Discount rate
(high)
I
7% Discount rate
(high)
Million 2021$
Total .................................................................................
¥54.1
I
¥22.5
I
¥57.8
I
¥23.9
lotter on DSK11XQN23PROD with PROPOSALS4
Note: Negative numbers represent an increase cost or disbenefit.
The Federal building energy
standards in this proposed rule are
projected to result in an estimated
national increased energy use of 0.029
quad. The increase is for the full fuel
cycle which is essentially accounting for
source energy impacts. The actual
breakdown is .001 upstream energy
savings and an increase of 0.030
primary energy use (energy use impacts
at the power plants) for a grand total of
an increase in .029 quads of full fuel
cycle energy. Additionally, the Federal
building energy standards are projected
to result in an estimated national CO2
emissions increase of 0.2 Mt (million
metric tons) according to AEO 2022
emission projection values accounting
for electricity procured from the grid. It
should be noted that this is a CO2
emissions increase only and does not
account for the additional emission
impacts from other GHGs such as N2O
and CH4. When combining CO2
increases with savings in Methane (CH4)
and minor increases in N2O into a CO2
equivalent metric, there results in an
overall net savings of CO2e emissions of
approximately 0.07 MMT (million
metric tons) CO2e.
Notably, the recent enactment of the
Inflation Reduction Act of 2022 (Pub. L.
117–169) and the Infrastructure
Investment and Jobs Act (Pub. L. 117–
58) will drive power sector emissions
reductions in both the near-term and the
short-term. With these laws in place,
U.S. economy-wide greenhouse gas
emissions are already projected to be 40
percent below 2005 levels in 2030, with
the power sector representing the largest
source of these reductions. In contrast to
the base case presented in this
rulemaking, there are alternative
scenarios for projecting the future
emissions associated with grid
electricity that better align with these
new policy drivers. These scenarios,
discussed in section V.A of this
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document, have a large effect on the net
emissions impacts of the proposed
rulemakings and present larger
environmental and overall net benefits.
With these policy drivers now in place,
reduced power sector emissions below
40% would only further add to the
benefits of this proposed rulemaking in
the future in terms of emissions
benefits. These scenarios do not present
comprehensive profiles for all
additional climate factors beyond CO2
emissions (such as NOX, Hg, N2O, CH4,
and SO2), and have been presented only
in the corresponding TSD for reference.
A more detailed discussion of the
basis for these tentative conclusions is
contained in the remainder of this
document and the accompanying TSD.
Further discussion on the costs and
benefits can be found in section V.A of
this document.
E. Reference Resources
DOE has prepared a list of resources
to help Federal agencies address the
reduction of fossil fuel-generated energy
consumption. These resources come in
many forms such as design guidance,
case studies and in a variety of media
such as printed documents or websites.
The resources for energy efficiency
improvement will also provide guidance
for fossil fuel-generated energy
consumption reductions.
• U.S. Department of Energy, Federal
Energy Management Program. (https://
www.energy.gov/eere/femp/federalenergy-management-program). 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.
(https://buildingdata.energy.gov/).
• U.S. Department of Energy, Better
Buildings Program. Decarbonization
Resource Hub. (https://
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betterbuildingssolution
center.energy.gov/carbon-hub).
• New York State Energy Research
and Development Authority
(NYSERDA). Building Decarbonization
Insights. (https://www.nyserda.ny.gov/
All-Programs/Empire-BuildingChallenge/Building-DecarbonizationInsights)
• New Buildings Institute. Buildings
Database. (https://newbuildings.org/
resource/getting-to-zero-database/).
V. Procedural Issues and Regulatory
Review
A. Review Under Executive Orders
12866 and 13563
Executive Order (‘‘E.O.’’) 12866,
‘‘Regulatory Planning and Review,’’ as
supplemented and reaffirmed by E.O.
13563, ‘‘Improving Regulation and
Regulatory Review, 76 FR 3821 (Jan. 21,
2011), requires agencies, to the extent
permitted by law, to (1) propose or
adopt a regulation only upon a reasoned
determination that its benefits justify its
costs (recognizing that some benefits
and costs are difficult to quantify); (2)
tailor regulations to impose the least
burden on society, consistent with
obtaining regulatory objectives, taking
into account, among other things, and to
the extent practicable, the costs of
cumulative regulations; (3) select, in
choosing among alternative regulatory
approaches, those approaches that
maximize net benefits (including
potential economic, environmental,
public health and safety, and other
advantages; distributive impacts; and
equity); (4) to the extent feasible, specify
performance objectives, rather than
specifying the behavior or manner of
compliance that regulated entities must
adopt; and (5) identify and assess
available alternatives to direct
regulation, including providing
economic incentives to encourage the
desired behavior, such as user fees or
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marketable permits, or providing
information upon which choices can be
made by the public. DOE emphasizes as
well that E.O. 13563 requires agencies to
use the best available techniques to
quantify anticipated present and future
benefits and costs as accurately as
possible. In its guidance, OIRA has
emphasized that such techniques may
include identifying changing future
compliance costs that might result from
technological innovation or anticipated
behavioral changes. For the reasons
stated in the preamble, this proposed
regulatory action is consistent with
these principles.
Section 6(a) of E.O. 12866 also
requires agencies to submit ‘‘significant
regulatory actions’’ to the Office of
Information and Regulatory Affairs
(‘‘OIRA’’) for review. OIRA has
determined that this proposed
regulatory action constitutes a
‘‘significant regulatory action’’ under
section 3(f) of E.O. 12866. Accordingly,
pursuant to section 6(a)(3)(C) of E.O.
12866, DOE has provided to OIRA an
assessment, including the underlying
analysis, of benefits and costs
anticipated from the proposed
regulatory action, together with, to the
extent feasible, a quantification of those
costs; and an assessment, including the
underlying analysis, of costs and
benefits of potentially effective and
reasonably feasible alternatives to the
planned regulation, and an explanation
why the planned regulatory action is
preferable to the identified potential
alternatives. These assessments are
summarized in the tables that follows,
as well as elsewhere in this preamble.
Further detail can be found in the
technical support document for this
proposed rulemaking.
DOE’s analyses indicate that the
proposed regulation would save a
significant amount of site energy;
however, switching from gas loads
burned on-site to electric loads
produced off-site, at national average
level emission rates, would result in an
increase of CO2, N2O, Hg, and SO2
emissions with a decrease in NOX and
CH4 emissions. Electrifying the end-use
equipment results in emissions that
become dependent upon the electricity
generation mix delivered to the
building. Relative to the case without
the proposed amended standards, Clean
Energy Rule compliant buildings
constructed in the 30-year period that
begins in the anticipated year of
compliance with the proposed amended
standards (2025–2034) will result in—
an increased lifetime energy use of
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0.029 quadrillion British thermal units
(‘‘Btu’’), or quads.44
The cumulative net present value
(‘‘NPV’’) of the proposed standards for
Clean Energy Rule compliant buildings
ranges from ¥$15.6 million (at a 7percent discount rate) to ¥$85.3
Million (at a 3-percent discount rate).
This NPV expresses the estimated total
value of future operating-cost savings
minus the estimated increased product
costs for a Clean Energy Rule compliant
building constructed in 2025–2054.
In addition, the proposed standards
for Clean Energy Rule compliant
buildings are projected to impact
emissions of multiple greenhouse gases
and other pollutants. DOE estimates that
the proposed standards would result in
cumulative emissions (over the same
period as for energy savings) impacts of
an increase of 0.2 million metric tons
(‘‘Mt’’) 45 of carbon dioxide (‘‘CO2’’), an
increase of 1.0 thousand tons of sulfur
dioxide (‘‘SO2’’), a decrease of 1.9
thousand tons of nitrogen oxides
(‘‘NOX’’), a decrease of 10.4 thousand
tons of methane (‘‘CH4’’), an increase of
0.021 thousand tons of nitrous oxide
(‘‘N2O’’), and an increase of 0.01 tons of
mercury (‘‘Hg’’).46
DOE estimates the monetized net
climate benefits from a change in
emissions of greenhouse gases using
four different estimates of the social cost
of CO2 (‘‘SC-CO2’’), the social cost of
methane (‘‘SC-CH4’’), and the social cost
of nitrous oxide (‘‘SC-N2O’’). Together
these represent the social cost of
greenhouse gases (‘‘SC-GHG’’). DOE
used interim SC-GHG values developed
by an Interagency Working Group on the
Social Cost of Greenhouse Gases
(‘‘IWG’’).47 The derivation of these
values is discussed in section IV. of this
44 The
quantity refers to full-fuel-cycle (‘‘FFC’’)
energy savings. FFC energy savings includes the
energy consumed in extracting, processing, and
transporting primary fuels (i.e., coal, natural gas,
petroleum fuels), and, thus, presents a more
complete picture of the impacts of energy efficiency
standards. For more information on the FFC metric,
see section on emission within this document.
45 A metric ton is equivalent to 1.1 short tons.
Results for emissions other than CO2 are presented
in short tons.
46 DOE calculated emissions changes relative to
the no-new-standards case, which reflects key
assumptions in the Annual Energy Outlook [2022]
(‘‘AEO[2022’’]). AEO2022 represents current federal
and state legislation and final implementation of
regulations as of the time of its preparation. See
section IV.K of this document for further discussion
of AEO2022 assumptions that effect air pollutant
emissions.
47 See Interagency Working Group on Social Cost
of Greenhouse Gases, Technical Support Document:
Social Cost of Carbon, Methane, and Nitrous Oxide.
Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021, available at
www.whitehouse.gov/wp-content/uploads/2021/02/
TechnicalSupportDocument_SocialCostof
CarbonMethaneNitrousOxide.pdf?source=email.
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78413
document. For presentational purposes,
the net climate benefits (Including both
the climate benefits and disbenefits)
associated with the average SC-GHG at
a 3-percent discount rate is $2.8 million,
primarily driven by savings in CH4. DOE
does not have a single central SC-GHG
point estimate and it emphasizes the
importance and value of considering the
benefits calculated using all four SCGHG estimates.48
DOE also estimates health disbenefits
from changes in SO2 and NOX
emissions.49 DOE estimates the present
value of the health disbenefits would be
$15.9 million using a 7-percent discount
rate, and $33.9 million using a 3-percent
discount rate which is driven by SO2
emission increases outweighing NOX
emissions decreases.50 DOE is currently
only monetizing (for SO2 and NOX)
PM2.5 precursor health effects and (for
NOX) ozone precursor health benefits,
but will continue to assess the ability to
monetize other effects such as health
effects from reductions in direct PM2.5
emissions.
Table V.1 summarizes the economic
benefits and costs expected to result
from the proposed standards. In the
table, total benefits for both the 3percent and 7-percent discount rate
cases include monetized climate
benefits based on the average SC-GHG
estimate under 3-percent discount rate
(thus the climate benefits number stays
the same). DOE does not have a single
central SC-GHG point estimate and it
emphasizes the importance and value of
considering the benefits calculated
using all four SC-GHG estimates. The
estimated total net benefits using each
of the four cases are presented in section
IV of this document.
48 On March 16, 2022, the Fifth Circuit Court of
Appeals (No. 22–30087) granted the federal
government’s emergency motion for stay pending
appeal of the February 11, 2022, preliminary
injunction issued in Louisiana v. Biden, No. 21–cv–
1074–JDC–KK (W.D. La.). As a result of the Fifth
Circuit’s order, the preliminary injunction is no
longer in effect, pending resolution of the federal
government’s appeal of that injunction or a further
court order. Among other things, the preliminary
injunction enjoined the defendants in that case
from ‘‘adopting, employing, treating as binding, or
relying upon’’ the interim estimates of the social
cost of greenhouse gases—which were issued by the
Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021—to
monetize the benefits of reducing greenhouse gas
emissions. In the absence of further intervening
court orders, DOE will revert to its approach prior
to the injunction and present monetized benefits
where appropriate and permissible under law.
49 DOE estimated the monetized value of NO
X
and SO2 emissions changes associated with the
Clean Energy Rule using benefit per ton estimates
from the scientific literature. See section IV.L.2 of
this document for further discussion.
50 DOE estimates the economic value of these
emissions changes resulting from the considered
rule for the purpose of complying with the
requirements of Executive Order 12866.
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TABLE V.1—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS
[Million 2021$] [2025–2054 plus 30-year lifetime]
Million 2021$
3% Discount rate
¥195.5
2.8
¥33.9
¥226.7
¥139.4
¥87.3
Operating Cost Savings ...........................................................................................................................
Climate Benefits * .....................................................................................................................................
Health Benefits ** .....................................................................................................................................
Total Benefits † ........................................................................................................................................
Incremental Product Costs †† ..................................................................................................................
Net Benefits .............................................................................................................................................
7% Discount rate
¥89.5
2.8
¥15.9
¥102.7
¥85.5
¥17.3
lotter on DSK11XQN23PROD with PROPOSALS4
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-rise buildings built and operated in 2025–2084. These results include benefits which accrue after 2054 from the buildings constructed in 2025–2054. Climate benefits and
disbenefits associated with GHG emissions changes occur over 2025–2070. DOE expects additional climate impacts to accrue from GHG emissions changes post 2070, but a lack of available SC-CO2, SC-CH4, and SC-N2O estimates for emissions years beyond 2070 prevents DOE from
monetizing these additional impacts in this analysis.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these
represent the social cost of greenhouse gases (SC-GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3 percent discount rate are shown but the Department does not have a single central SC-GHG point estimate. See section
IV.C of this document for more details. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s
emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–
KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in that case from
‘‘adopting, employing, treating as binding, or relying upon’’ the interim estimates of the social cost of greenhouse gases—which were issued by
the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health benefits but will continue to assess the ability to monetize other effects such as
health benefits from reductions in direct PM2.5 emissions. See section IV.C of this document for more details.
† Total and net benefits include those consumer, climate, and health benefits that can be quantified and monetized. For presentation purposes,
total and net benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate, but the
Department does not have a single central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
‡ Costs include incremental equipment costs as well as installation costs.
The benefits and costs of the proposed
standards can also be expressed in terms
of annualized values. The monetary
values for the total annualized net
benefits are (1) the reduced product
purchase prices and installation costs,
minus (2) the increase in operating
costs, plus (3) the monetized value of
changes in GHG, and NOX, and SO2
emissions, all annualized.51 The
benefits and disbenefits associated with
changes in emissions as a result of the
proposed standards are also calculated
based on the lifetime of a Clean Energy
Rule compliant building constructed in
2025–2054.
Estimates of annualized benefits and
costs of the proposed standards are
shown in. The results show as the
primary estimate utilize a 7-percent
discount rate for operating benefits,
costs, and health benefits and
disbenefits (from changes to NOX and
SO2 emissions), and a 3-percent
discount rate case for climate benefits
(from GHG emissions) are as follows:
• Capital cost impacts of the
standards proposed in this case are
estimated to be $7.89 million per year
in decreased equipment costs.
• Annual operating disbenefits are
estimated to be $8.26 million per year
in increased equipment operating costs,
primarily driven by the higher relative
cost of electricity compared to natural
gas.
• Net climate benefits total $0.15
million per year, primarily driven by
savings from CH4.
• Net health disbenefits total $1.47
million per year, primarily driven by
increased SO2 emissions overshadowing
NOX emissions savings.
• Overall net monetized disbenefits
would amount to a cost of $1.70 million
per year.
Using a 3-percent discount rate for all
benefits, disbenefits and costs the
annualized results are as follows:
• Capital cost impacts of the
standards proposed in this case are
estimated to be $7.55 million per year
in decreased equipment costs.
• Annual operating disbenefits are
estimated to be $10.58 million per year
in increased equipment operating costs,
driven by the higher relative cost of
electricity compared to natural gas.
• Net Climate benefits total $0.15
million per year, primarily driven by
savings from CH4.
• Net health disbenefits total $1.84
million per year, primarily driven by
increased SO2 emissions overshadowing
NOX emissions savings.
• Overall net monetized disbenefits
would amount to a cost of $4.73 million
per year.
51 To convert the time-series of costs and benefits
into annualized values, DOE calculated a present
value in $2021, the year used for discounting the
NPV of total costs and savings. For the benefits,
DOE calculated a present value associated with
each year’s shipments in the year in which the
shipments occur (e.g., 2030), and then discounted
the present value from each year to 2022. Using the
present value, DOE then calculated the fixed annual
payment over a 30-year period, starting in the
compliance year, that yields the same present value.
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TABLE V.2—ANNUALIZED MONETIZED BENEFITS AND COSTS OF PROPOSED REGULATION
[Million 2021$]
Million 2021$/year
Category
3% Discount rate
7% Discount rate
¥10.58
0.15
¥1.84
¥12.27
¥7.55
¥4.73
Operating Cost Impacts ...........................................................................................................................
Climate Benefits * .....................................................................................................................................
Health Benefits ** .....................................................................................................................................
Total Benefits † ........................................................................................................................................
Incremental Product Costs †† ..................................................................................................................
Net Benefits .............................................................................................................................................
¥8.26
0.15
¥1.47
¥9.58
¥7.89
¥1.70
Note: This table presents the costs and benefits associated with the Clean Energy Rule impacted buildings in 2025–2084. These results include benefits which accrue after 2054 from the buildings constructed in 2025–2054.
* Climate benefits are calculated using four different estimates of the SC-GHG (see section IV.D of this document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3 percent discount rate are shown, but the Department does
not have a single central SC-GHG point estimate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–
1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal
government’s appeal of that injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in that
case from ‘‘adopting, employing, treating as binding, or relying upon’’ the interim estimates of the social cost of greenhouse gases—which were
issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing
greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its approach prior to the injunction and presents
monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health benefits but will continue to assess the ability to monetize other effects such as
health benefits from reductions in direct PM2.5 emissions.
† Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate, but the Department does not have a single central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
†† Costs include incremental equipment costs as well as installation costs.
DOE’s analysis of the national impacts
of the proposed standards is described
in sections IV.A, and IV.B of this
document.
Table V.3 presents DOE’s evaluation
of the economic impacts of the proposed
regulations, as measured by the average
life-cycle cost (‘‘LCC’’).52 The average
LCC savings are ¥$30.1 Million and
there is no traditional PBP as the
incremental capital cost of the proposed
regulation is negative but the
incremental operating cost is positive
(see section IV of this document).
lotter on DSK11XQN23PROD with PROPOSALS4
TABLE V.3—IMPACTS OF PROPOSED REGULATION
Clean energy rule compliant building policy
Average LCC savings
(million 2021$)
3% Discount Rate ................................................................................................................................................................
7% Discount Rate ................................................................................................................................................................
¥56.13
¥4.077
DOE’s analysis is sensitive to how
emission factors per unit of grid
electricity purchased change over time.
The base case presented in this
rulemaking utilizes emission factors
obtained through EIA’s Annual Energy
Outlook for 2022 (AEO 2022). This is
consistent with the methodology used
in other rulemakings (including the
efficiency portions for the analysis
behind 10 CFR parts 433 and 435) and
representative of an expected or
‘‘business as usual’’ case. However, AEO
2022 does not account for goals or plans
to accelerate grid decarbonization, such
as President Biden’s goal to achieve
100% carbon pollution-free electricity
by 2035. Such accelerated clean grid
scenarios can significantly impact the
overall emissions profile of the rule
allowing for more climate benefits
sooner in the lifecycle of the expected
projects.
To demonstrate this proposed
rulemaking’s sensitivity to purchased
electricity emission factor ‘‘cleanliness’’
projections, DOE analyzed an additional
case where the future grid emission
factors were assumed to follow a ‘‘95%
reduction by 2035’’ (95 by 2035) profile
as defined in the National Renewable
Energy Lab’s ‘‘2021 Standard Scenarios
Report: A U.S. Electricity Sector
Outlook’’ report presented in the
technical support document for this
rulemaking. This case represents a
change in national electricity generation
which assumes national power sector
CO2 emissions reach 95% below 2005
levels by 2035 and are eliminated on a
net basis by 2050. This aggressive case
results in only three years of annual
increases in CO2e gas emissions and
results in cumulative savings of CO2e
emissions just after 5 years. Results for
the 95 by 2035 case are presented in
Table V.4 and Table V.5 of this
document. Additional details on the
sensitivity to emission factor
progression and an additional case run
based on the EIA Corporate Goal data
are presented in the technical support
document and environmental
assessment supporting this rule. As
noted previously, these alternative cases
are presented to show the emissions and
climate impacts of this rule in
accelerated clean grid scenarios that
may flow from recent legislation and
Administration priorities, but that are
52 The average LCC refer to buildings that are
affected by a standard and are measured relative to
the efficiency distribution in the no-new-standards
case, which depicts the market in the compliance
year in the absence of new or amended standards
(see section E. Impacts of the Rule of this
document). The simple PBP, which is designed to
compare specific building performance levels, is
measured relative to the baseline compliance case
(see section V.A of this document).
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not represented in the base case using
AEO 2022 (the ‘‘business as usual’’
case).
TABLE V.4—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS (MILLION 2021$) (2025–2054 PLUS 30-YEAR
LIFETIME) FOR 95 BY 35 EMISSIONS REDUCTIONS CASE
Million 2021$
3% Discount rate
7% Discount rate
¥195.5
92.9
46.6
¥56.0
¥139.4
83.4
Operating Cost Savings ...........................................................................................................................
Climate Benefits * .....................................................................................................................................
Health Benefits ** .....................................................................................................................................
Total Benefits † ........................................................................................................................................
Incremental Product Costs †† ..................................................................................................................
Net Benefits .............................................................................................................................................
¥89.5
92.9
15.8
19.2
¥85.5
104.6
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-rise buildings built in 2025–
2084. These results include benefits which accrue after 2054 from the buildings constructed in 2025–2054.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide
(SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these
represent the social cost of greenhouse gases (SC-GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3 percent discount rate are shown but the Department does not have a single central SC-GHG point estimate. See section
IV.C of this document for more details. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s
emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–
KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in that case from
‘‘adopting, employing, treating as binding, or relying upon’’ the interim estimates of the social cost of greenhouse gases—which were issued by
the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health benefits but will continue to assess the ability to monetize other effects such as
health benefits from reductions in direct PM2.5 emissions. See section IV.C of this document for more details.
† Total and net benefits include those consumer, climate, and health benefits that can be quantified and monetized. For presentation purposes,
total and net benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate, but the
Department does not have a single central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
†† Costs include incremental equipment costs as well as installation costs.
TABLE V.5—ANNUALIZED MONETIZED BENEFITS AND COSTS OF PROPOSED REGULATION (MILLION 2021$) FOR 95 BY 35
EMISSIONS REDUCTIONS CASE
Million 2021$/year
Category
3% Discount rate
¥10.58
5.03
2.52
¥3.03
¥7.55
4.51
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Operating Cost Impacts ...........................................................................................................................
Climate Benefits * .....................................................................................................................................
Health Benefits ** .....................................................................................................................................
Total Benefits † ........................................................................................................................................
Incremental Product Costs †† ..................................................................................................................
Net Benefits .............................................................................................................................................
7% Discount rate
¥8.26
5.03
1.46
¥1.77
¥7.89
6.11
Note: This table presents the costs and benefits associated with Clean Energy Rule impacted buildings in 2025–2084. These results include
benefits which accrue after 2054 from the buildings constructed in 2025–2054.
* Climate benefits are calculated using four different estimates of the SC-GHG (see section IV.D of this document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a 3 percent discount rate are shown, but the Department does
not have a single central SC-GHG point estimate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22–30087) granted the Federal
government’s emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued in Louisiana v. Biden, No. 21–
cv–1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the
Federal government’s appeal of that injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in
that case from ‘‘adopting, employing, treating as binding, or relying upon’’ the interim estimates of the social cost of greenhouse gases—which
were issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its approach prior to the injunction and
presents monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5
precursor health benefits and (for NOX) ozone precursor health benefits but will continue to assess the ability to monetize other effects such as
health benefits from reductions in direct PM2.5 emissions.
† Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-percent discount rate, but the Department does not have a single central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated using all four SC-GHG estimates.
†† Costs include incremental equipment costs as well as installation costs.
DOE’s analysis of the impacts of the
proposed regulation on federal agencies
is described in section V.A, Cost
Effectiveness, of this document.
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B. Review Under the Regulatory
Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires preparation
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of an initial regulatory flexibility
analysis (‘‘IRFA’’) for any rule that by
law must be proposed for public
comment, unless the agency certifies
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that the rule, if promulgated, will not
have a significant economic impact on
a substantial number of small entities.
As required by E.O. 13272, ‘‘Proper
Consideration of Small Entities in
Agency Rulemaking,’’ 67 FR 53461
(Aug. 16, 2002), DOE published
procedures and policies on February 19,
2003, to ensure that the potential
impacts of its rules on small entities are
properly considered during the
rulemaking process. 68 FR 7990. DOE
has made its procedures and policies
available on the Office of the General
Counsel’s website (www.energy.gov/gc/
office-general-counsel).
This proposed rule 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 rule will 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
This proposed rulemaking will
impose no new information or record
keeping requirements. Accordingly,
OMB clearance is not required under
the Paperwork Reduction Act. (44
U.S.C. 3501 et seq.)
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D. Review Under the National
Environmental Policy Act of 1969
DOE prepared a draft Environmental
Assessment (EA) (DOE/EA–1778)
entitled, ‘‘Environmental Assessment
for Final 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 (NEPA) (40
CFR parts 1500–1508), NEPA, as
amended (42 U.S.C. 4321 et seq.), and
DOE’s NEPA Implementing Procedures
(10 CFR part 1021).
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The draft EA addresses the possible
environmental effects attributable to the
implementation of this proposed rule.
The rule, by its fundamental intent, will
have a positive impact on the
environment. The anticipated impacts
of this proposed rulemaking are an
overall decrease in CO2 equivalent gases
(despite modest increases in base CO2
and N2O emissions, CH4 emission
reductions result in net savings) with an
additional decrease in NOX emission
and an increase in SO2 emissions
resulting from reduced fossil fuelgenerated energy consumption in new
Federal buildings and major renovations
of Federal buildings but increased
electric purchases from the grid.
To identify the potential
environmental impacts that may result
from implementing the proposed rule
on Federal buildings, DOE compared
the requirements of the proposed rule
shifting all scope 1 stationary
combustion on site fossil fuel usage to
electric with the ‘‘no-action alternative’’.
Accordingly, DOE concludes in the
draft EA that new Federal buildings
designed and constructed to be
compliant with the Clean Energy Rule
will not have a significant
environmental impact compared to
Federal buildings designed and
constructed to Standard 90.1–2019
because the site energy impacts are very
sensitive to and offset by upstream
emissions associated with electricity
purchased from the grid. This change in
energy usage translates to varied
emissions impacts of carbon dioxide
(‘‘CO2’’), nitrogen oxides (‘‘NOX’’),
mercury (‘‘Hg’’), and methane (‘‘CH4’’)
over the 30-year period examined in the
EA. As reported in the EA, Cumulative
emission changes for 30 years of
construction and operation for Federal
buildings built during the analysis
period (2025 through 2054) were
estimated to be an increase of 174,730
metric tons of CO2, an increase of 907.4
tons of SO2, a decrease of 1,597.67 tons
of NOX, a decrease of 8,917.46 tons of
CH4, and an increase of 17.76 tons of
N2O.
E. Review Under Executive Order 13132
E.O. 13132, ‘‘Federalism,’’ 64 FR
43255 (Aug. 10, 1999), imposes certain
requirements on Federal 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
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have an accountable process to ensure
meaningful and timely input by State
and local officials in the development of
regulatory policies that have federalism
implications. On March 14, 2000, DOE
published a statement of policy
describing the intergovernmental
consultation process it will follow in the
development of such regulations. 65 FR
13735. DOE has examined this proposed
rule and has tentatively determined that
it 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. Therefore,
no further action is required by
Executive Order 13132.
F. Review Under Executive Order 12988
With respect to the review of existing
regulations and the promulgation of
new regulations, section 3(a) of E.O.
12988, ‘‘Civil Justice Reform,’’ 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, (3) provide a clear
legal standard for affected conduct
rather than a general standard, and (4)
promote simplification and burden
reduction. 61 FR 4729 (Feb. 7, 1996).
Regarding the review required by
section 3(a), section 3(b) of E.O. 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 proposed
rule meets the relevant standards of E.O.
12988.
G. Review Under the Unfunded
Mandates Reform Act of 1995
Title II of the Unfunded Mandates
Reform Act of 1995 (‘‘UMRA’’) requires
each Federal agency to assess the effects
of Federal regulatory actions on State,
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local, and Tribal governments and the
private sector. Public Law 104–4,
section 201 (codified at 2 U.S.C. 1531).
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), (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 them. On March 18, 1997, DOE
published a statement of policy on its
process for intergovernmental
consultation under UMRA. 62 FR
12820. DOE’s policy statement is also
available at www.energy.gov/sites/prod/
files/gcprod/documents/umra_97.pdf.
This proposed 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 UMRA do not apply.
H. Review Under the Treasury and
General Government Appropriations
Act, 1999
Section 654 of the Treasury and
General Government Appropriations
Act, 1999 (Pub. L. 105–277) requires
Federal agencies to issue a Family
Policymaking Assessment for any rule
that may affect family well-being. This
proposed rule would not have any
impact on the autonomy or integrity of
the family as an institution.
Accordingly, DOE has concluded that it
is not necessary to prepare a Family
Policymaking Assessment.
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I. Review Under Executive Order 12630
Pursuant to E.O. 12630,
‘‘Governmental Actions and Interference
with Constitutionally Protected Property
Rights,’’ 53 FR 8859 (Mar. 15, 1988),
DOE has determined that this proposed
rule would not result in any takings that
might require compensation under the
Fifth Amendment to the U.S.
Constitution.
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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 Federal agencies to review most
disseminations of information to the
public under information quality
guidelines established by each agency
pursuant to general guidelines issued by
OMB. OMB’s guidelines were published
at 67 FR 8452 (Feb. 22, 2002), and
DOE’s guidelines were published at 67
FR 62446 (Oct. 7, 2002). Pursuant to
OMB Memorandum M–19–15,
Improving Implementation of the
Information Quality Act (April 24,
2019), DOE published updated
guidelines which are available at
www.energy.gov/sites/prod/files/2019/
12/f70/DOE%20Final
%20Updated%20IQA%20Guidelines
%20Dec%202019.pdf. DOE has
reviewed this SNOPR under the OMB
and DOE guidelines and has concluded
that it is consistent with applicable
policies in those guidelines.
K. Review Under Executive Order 13211
E.O. 13211, ‘‘Actions Concerning
Regulations That Significantly Affect
Energy Supply, Distribution, or Use,’’ 66
FR 28355 (May 22, 2001), requires
Federal agencies to prepare and submit
to OIRA at OMB, a Statement of Energy
Effects for any proposed significant
energy action. A ‘‘significant energy
action’’ is defined as any action by an
agency that promulgates 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 proposed 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.
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L. Information Quality
On December 16, 2004, OMB, in
consultation with the Office of Science
and Technology Policy (‘‘OSTP’’),
issued its Final Information Quality
Bulletin for Peer Review (‘‘the
Bulletin’’). 70 FR 2664 (Jan. 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.
M. Description of Materials
Incorporated by Reference
In this final rule, DOE incorporates by
reference ANSI/ASHRAE/IES Standard
90.1–2019, Energy Standard for
Buildings Except Low-Rise Residential
Buildings, (I–P Edition), 2019. This
standard provides minimum
requirements for energy efficient
designs for buildings except for low-rise
residential buildings. Copies of this
standard are available from ASHRAE,
Inc., 180 Peachtree Corners, GA 30092,
(404) 636–8400, www.ashrae.org.
ASHRAE provides a free, online, readonly version of Standard 90.1–2019
available at www.ashrae.org/technicalresources/standards-and-guidelines.
Users must scroll down to locate and
click on Standard 90.1–2019 (IP).
The Director of the Federal Register
previously approved ANSI/ASHRAE/
IES 90.1–2004, 2007, 2010, and 2013,
Energy Standard for Buildings Except
Low-Rise Residential Buildings for
incorporation by reference in 10 CFR
part 433.
In this final rule, DOE incorporates by
reference the ICC 2021 International
Energy Conservation Code, (IECC),
Redline Version, copyright 2021. This
U.S. standard provides minimum
requirements for energy-efficient
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designs for low-rise residential
buildings. Copies of this standard are
available from the International Code
Council, 4051 West Flossmoor Road,
Country Club Hills, IL 60478, 1–888–
422–7233, www.iccsafe.org.
The Director of the Federal Register
previously approved ICC International
Energy Conservation Code (IECC) 2005,
2009, and 2015 Editions, for
incorporation by reference in 10 CFR
part 435.
VI. Public Participation
A. Attendance at the Public Meeting
The time, date, and location of the
public meeting are listed in the DATES
and ADDRESSES sections at the beginning
of this document. This meeting will be
held via webinar. Webinar registration
information, participant instructions,
and information about the capabilities
available to webinar participants can be
found at the following link: https://
doe.webex.com/weblink/register/
ra441feed3edc105af1383fa6e41e1e39.
Participants are responsible for ensuring
their systems are compatible with the
webinar software.
Please note that foreign nationals
attending the meeting are subject to
advance security screening procedures
which require advance notice prior to
attendance at the public meeting. If a
foreign national wishes to participate in
the public meeting, please inform DOE
of this fact as soon as possible by
contacting Ms. Regina Washington at
(202) 586–1214 or by email
(Regina.Washington@ee.doe.gov) so that
the necessary procedures can be
completed.
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B. Procedure for Submitting Prepared
General Statements for Distribution
Any person who has plans to present
a prepared general statement may
request that copies of his or her
statement be made available at the
public meeting. Such persons may
submit requests, along with an advance
electronic copy of their statement in
PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file
format, to the appropriate address
shown in the ADDRESSES section at the
beginning of this document. The request
and advance copy of statements must be
received at least one week before the
public meeting and are to be emailed.
Please include a telephone number to
enable DOE staff to make follow-up
contact, if needed.
C. Conduct of the Public Meeting
DOE will designate a DOE official to
preside at the public meeting and may
also use a professional facilitator to aid
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discussion. The meeting will not be a
judicial or evidentiary-type public
hearing, but DOE will conduct it in
accordance with section 336 of EPCA.
(42 U.S.C. 6306) A court reporter will be
present to record the proceedings and
prepare a transcript. DOE reserves the
right to schedule the order of
presentations and to establish the
procedures governing the conduct of the
public meeting. There shall not be
discussion of proprietary information,
costs or prices, market share, or other
commercial matters regulated by U.S.
anti-trust laws. After the public meeting,
interested parties may submit further
comments on the proceedings, as well
as on any aspect of the rulemaking, until
the end of the comment period.
The public meeting will be conducted
in an informal, conference style. DOE
will present a general overview of the
topics addressed in this rulemaking,
allow time for prepared general
statements by participants, and
encourage all interested parties to share
their views on issues affecting this
rulemaking. Each participant will be
allowed to make a general statement
(within time limits determined by DOE),
before the discussion of specific topics.
DOE will allow, as time permits, other
participants to comment briefly on any
general statements.
At the end of all prepared statements
on a topic, DOE will permit participants
to clarify their statements briefly.
Participants should be prepared to
answer questions by DOE and by other
participants concerning these issues.
DOE representatives may also ask
questions of participants concerning
other matters relevant to this
rulemaking. The official conducting the
public meeting will accept additional
comments or questions from those
attending, as time permits. The
presiding official will announce any
further procedural rules or modification
of the previous procedures that may be
needed for the proper conduct of the
public meeting.
A transcript of the public meeting will
be included in the docket, which can be
viewed as described in the Docket
section at the beginning of this
document and will be accessible on the
DOE website. In addition, any person
may buy a copy of the transcript from
the transcribing reporter.
D. Submission of Comments
DOE will accept comments, data, and
information regarding this proposed
rule before or after the public meeting,
but no later than the date provided in
the DATES section at the beginning of
this proposed rule. Interested parties
may submit comments, data, and other
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information using any of the methods
described in the ADDRESSES section at
the beginning of this document.
Submitting comments via
www.regulations.gov. The
www.regulations.gov web page will
require you to provide your name and
contact information. Your contact
information will be viewable to DOE
Building Technologies staff only. Your
contact information will not be publicly
viewable except for your first and last
names, organization name (if any), and
submitter representative name (if any).
If your comment is not processed
properly because of technical
difficulties, DOE will use this
information to contact you. If DOE
cannot read your comment due to
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you for clarification, DOE may not be
able to consider your comment.
However, your contact information
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it in the comment itself or in any
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Any information that you do not want
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Otherwise, persons viewing comments
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Do not submit to www.regulations.gov
information for which disclosure is
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secrets and commercial or financial
information (hereinafter referred to as
Confidential Business Information
(‘‘CBI’’)). Comments submitted through
www.regulations.gov cannot be claimed
as CBI. Comments received through the
website will waive any CBI claims for
the information submitted. For
information on submitting CBI, see the
Confidential Business Information
section.
DOE processes submissions made
through www.regulations.gov before
posting. Normally, comments will be
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Please keep the comment tracking
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Submitting comments via email.
Comments and documents submitted
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your comment or any accompanying
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documents. Instead, provide your
contact information in a cover letter.
Include your first and last names, email
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letter will not be publicly viewable as
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comments.
Include contact information each time
you submit comments, data, documents,
and other information to DOE. No
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Comments, data, and other
information submitted to DOE
electronically should be provided in
PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file
format. Provide documents that are not
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Documents should not contain special
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and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit
campaign form letters by the originating
organization in batches of between 50 to
500 form letters per PDF or as one form
letter with a list of supporters’ names
compiled into one or more PDFs. This
reduces comment processing and
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Confidential Business Information.
Pursuant to 10 CFR 1004.11, any person
submitting information that he or she
believes to be confidential and exempt
by law from public disclosure should
submit via email two well-marked
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and one copy of the document marked
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It is DOE’s policy that all comments
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Buildings and facilities, Energy
conservation, Engineers, Federal
buildings and facilities, Fossil fuel
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Buildings and facilities, Energy
conservation, Engineers, Federal
buildings and facilities, Fossil fuel
reductions, Housing, Incorporation by
reference.
Signing Authority
This document of the Department of
Energy was signed on December 6, 2022,
by Mary Sotos, Director of the Federal
Energy Management Program, pursuant
to delegated authority from the
Secretary of Energy. That document
with the original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on December 9,
2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
For the reasons set forth in the
preamble, DOE proposes to amend parts
433 and 435 of 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. Amend § 433.1 by adding paragraph
(b) to read as follows:
■
Purpose and scope.
*
The Secretary of Energy has approved
publication of this supplemental notice
of proposed rulemaking.
10 CFR Part 433
10 CFR Part 435
§ 433.1
VII. Approval of the Office of the
Secretary
List of Subjects
reductions, Housing, Incorporation by
reference, Multi-family residential
buildings.
*
*
*
*
(b) This part also establishes a
maximum allowable fossil fuelgenerated energy consumption standard
for new Federal buildings that are
commercial or multi-family high-rise
residential buildings and major
renovations to Federal buildings that are
commercial or multi-family high-rise
residential buildings, for which design
for construction began on or after [Date
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one year after date of publication in the
Federal Register].
*
*
*
*
*
■ 3. Amend § 433.2 by:
■ a. Adding in alphabetical order the
definitions of ‘‘Construction cost,’’
‘‘Design for renovation’’, ‘‘EISA-subject
building or project’’, ‘‘Federal building,’’
‘‘Fiscal year (FY),’’ ‘‘Major renovation,’’
‘‘Major renovation cost,’’ ‘‘Major
renovation of all Scope 1 fossil fuelusing systems in a building,’’ ‘‘Major
renovation of a Scope 1 fossil fuel-using
building system or Scope 1 fossil fuelusing component,’’ and ‘‘Multi-family
high-rise residential building,’’.
■ b. Revising the definition of
‘‘Proposed building’’; and
■ c. Adding in alphabetical order the
definition of ‘‘Scope 1 fossil fuelgenerated energy consumption’’, ‘‘Shift
adjustment multiplier’’ and ‘‘Technical
impracticability’’.
The additions and revision read as
follows:
§ 433.2
Definitions.
*
*
*
*
*
Construction cost means all costs
associated with design and construction
of a Federal 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.
*
*
*
*
*
Design for renovation means the stage
when the energy efficiency and
sustainability details (such as insulation
levels, HVAC systems, water-using
systems, etc.) are either explicitly
determined or implicitly included in a
renovation project cost specification.
EISA-subject building or project
means, for purposes of this rule, any
new Federal building or renovation
project that is subject to the cost
thresholds and reporting requirements
in Section 433 of EISA 2007 ((42 U.S.C.
6834(a)(3)(D)(i))). The cost threshold
referenced in Section 433 of EISA is
$2.5 million in 2007 dollars. GSA
provides a table of annual updates to
this cost threshold at https://
www.gsa.gov/real-estate/design-andconstruction/annual-prospectusthresholds. GSA also provides a second
cost threshold for renovations of leased
buildings that is 1⁄2 of the cost threshold
for renovation of Federally owned
buildings.
*
*
*
*
*
Federal building as defined in 42
U.S.C. 6832 means 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
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leased by a Federal agency, and
privatized military housing.
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 either major
renovation of all Scope 1 fossil fuelgenerated/consuming systems in a
Federal building or major renovation of
one or more Scope 1 fossil fuel-using
building systems or components, as
defined in this section.
Major renovation cost means:
(1) Preliminary planning, engineering,
architectural, legal, fiscal, and economic
investigations and studies, surveys,
designs, plans, working drawings,
specifications, procedures, and other
similar actions necessary for the
alteration of a public building; and (2)
Repairing, remodeling, improving, or
extending, or other changes in, a public
building as per 40 U.S.C. 3301(a)(1).
Major renovation of all Scope 1 fossil
fuel-using systems in a building means
construction on an existing Federal
building that is so extensive that it
replaces all Scope 1 fossil fuel-using
systems in the building. This term
includes, but is not limited to,
comprehensive replacement or
restoration of most or all major systems,
interior work (such as ceilings,
partitions, doors, floor finishes, etc.), or
building elements and features.
Major renovation of a Scope 1 fossil
fuel-using building system or Scope 1
fossil fuel-using component means
changes to a Federal building that
provide significant opportunities for
energy efficiency or reduction in fossil
fuel-related energy consumption. This
includes, but is not limited to,
replacement of the HVAC system, hot
water system, or cooking system, or
other fossil fuel-using systems or
components of the building that have a
major impact on fossil fuel usage.
Multi-family high-rise residential
building means a residential Federal
building that contains 3 or more
dwelling units and that is designed to be
4 or more stories above grade.
*
*
*
*
*
Proposed building means the design
for construction of a new Federal
commercial or multi-family high-rise
residential building, proposed for
construction, or a major renovation to a
Federal commercial or multi-family
high-rise residential building.
*
*
*
*
*
Scope 1 fossil fuel-generated energy
consumption means, for purposes of
this proposed rule, the on-site stationary
combustion of fossil fuels that
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contribute to Scope 1 emissions for
generation of electricity, heat, cooling,
or steam as defined by ‘‘Federal
Greenhouse Gas Accounting and
Reporting Guidance’’ (Council on
Environmental Quality, January 17,
2016), including but not limited to,
combustion of fuels in stationary
sources (e.g., boilers, furnaces, turbines,
and emergency generators). This term
does not include mobile sources,
fugitive emissions, or process emissions
as defined by ‘‘Federal Greenhouse Gas
Accounting and Reporting Guidance’’
(Council on Environmental Quality,
January 17, 2016).
Shift adjustment multiplier means
that agencies can apply a multiplication
factor to their Maximum Allowable
Fossil Fuel-Generated Energy
Consumption by Building Category
target based upon the weekly hours of
active operation of the building. The
weekly hours of operation to use as a
basis for the shift adjustment multiplier
lookup should be based upon the time
in which in the building is actively
occupied and operating per its intended
use type and should include
unoccupied hours or other times of
limited use (such as night-time setback
hours).
Technical impracticability means
achieving the Scope 1 fossil fuelgenerated energy consumption targets
would (1) not be feasible from an
engineering design or execution
standpoint due to existing physical or
site constraints that prohibit
modification or addition of elements or
spaces (2) significantly obstruct building
operations and the functional needs of
a building, specifically for industrial
process loads, critical national security
functions, mission critical information
systems as defined in NIST SP 800–60
Vol. 2 Rev. 1, and research operations,
or (3) significantly degrade energy
resiliency and energy security of
building operations as defined in 10
U.S.C. 101(e)(6) and 10 U.S.C. 101(e)(7)
respectively. Upon determination that
complying with the Clean Energy Rule
is technically impracticable, the
building is still required to reduce fossil
fuel consumption to the maximum
extent practicable. Technical
impracticability may include technology
availability and cost considerations but
may not be based solely on cost
considerations.
■ 4. Amend § 433.3 by revising
paragraph (b)(5) to read as follows:
§ 433.3 Materials incorporated by
reference.
*
*
*
(b) * * *
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78421
(5) ANSI/ASHRAE/IES 90.1–2019,
(‘‘ASHRAE 90.1–2019’’), Energy
Standard for Buildings Except Low-Rise
Residential Buildings, I–P Edition,
copyright 2019, IBR approved for
§§ 433.2, 433.100, 433.101, 433.201 and
appendix A to this subpart.
■ 5. Subpart B is added to part 433 to
read as follows:
Subpart B—Reduction in Scope 1
Fossil Fuel-Generated Energy
Consumption
Sec.
433.200 Scope 1 Fossil fuel-generated
energy consumption requirement.
433.201 Scope 1 Fossil fuel-generated
energy consumption determination.
433.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 433—
Maximum Allowable Scope 1 Fossil
Fuel-Generated Energy Consumption
§ 433.200 Scope 1 Fossil fuel-generated
energy consumption requirement.
(a) New EISA-Subject buildings. (1)
New Federal buildings that are
commercial or multi-family high-rise
residential buildings, for which design
for construction began on or after
December 21, 2023, 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). See GSA Annual
Prospectus Thresholds at www.gsa.gov/
real-estate/design-construction/gsaannual-prospectus-thresholds.
(2) Reserved.
(b) Major renovations of EISA-Subject
buildings. (1) Major renovations to
Federal buildings that are commercial or
multi-family high-rise residential
buildings, for which design for
construction began on or after December
21, 2023, 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
of a Federally owned building is at least
$2,500,000 (in 2007 dollars, adjusted for
inflation). The cost of a major
renovation for a Federally leased
building is at least $1,250,000 (in 2007
dollars). See GSA Annual Prospectus
Thresholds at www.gsa.gov/real-estate/
design-construction/gsa-annualprospectus-thresholds.
(2) This subpart only applies to major
renovations that meet the major
renovation of all scope 1 fossil fuelusing systems in a Federal building or
the major renovation of a scope 1 fossil
fuel-using building system or scope 1
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fossil fuel-using component definition
in § 433.2.
(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.
(4) 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 renovations permits
compliance with the applicable
requirements of this subpart. Unaltered
portions of the proposed building or
proposed building systems are not
required to comply with this subpart.
(c) Federal buildings that are of the
type included in Appendix A of this
subpart.
(1) New Construction and Major
Renovations of all Scope 1 Fossil FuelUsing Systems in EISA-Subject
Buildings.
(i) Design for construction began
during fiscal year 2024 through fiscal
year 2029. For new construction or
major renovations of all Scope 1 fossilfuel using systems in a Federal building
for which design for construction or
renovation, as applicable, began during
fiscal year 2024 through 2029, the Scope
1 fossil fuel-generated 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 A–1a to A–2a (if targets based on
emissions are used) or Tables A–1b to
A–2b (if targets based on kBtu of fossil
fuel usage are used) of appendix A of
this subpart for the associated building
type, climate zone, and fiscal year in
which design for construction began.
(A) Federal agencies may apply a shift
adjustment multiplier to the values in
Tables A–1a to A–2a or Tables A–1b to
A–2b based on the following baseline
hours of operation assumed in Tables
A–1a to A–2a or Tables A–1b to A–2b.
(B) To calculate the shift adjustment
multiplier, agencies shall estimate the
number of shifts for their new building
and multiply by the appropriate factor
shown below in Table VII.1 of this
section for their building type. The
Scope 1 fossil fuel-generated energy
consumption target for the building
would be the value in either Tables A–
1a to A–2a or Tables A–1b to A–2b
multiplied by the multiplier calculated
in the previous sentence.
TABLE VII.1—SHIFT ADJUSTMENT MULTIPLIER BY HOURS OF OPERATION AND BUILDING TYPE
Weekly hours of operation
Building activity/type
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50 or less
Admin/professional office .............................................................................................................
Bank/other financial .....................................................................................................................
Government office .......................................................................................................................
Medical office (non-diagnostic) ....................................................................................................
Mixed-use office ...........................................................................................................................
Other office ..................................................................................................................................
Laboratory ....................................................................................................................................
Distribution/shipping center .........................................................................................................
Nonrefrigerated warehouse .........................................................................................................
Convenience store .......................................................................................................................
Convenience store with gas ........................................................................................................
Grocery store/food market ...........................................................................................................
Other food sales ..........................................................................................................................
Fire station/police station .............................................................................................................
Other public order and safety ......................................................................................................
Medical office (diagnostic) ...........................................................................................................
Clinic/other outpatient health .......................................................................................................
Refrigerated warehouse ..............................................................................................................
Religious worship .........................................................................................................................
Entertainment/culture ...................................................................................................................
Library ..........................................................................................................................................
Recreation ....................................................................................................................................
Social/meeting .............................................................................................................................
Other public assembly .................................................................................................................
College/university .........................................................................................................................
Elementary/middle school ............................................................................................................
High school ..................................................................................................................................
Preschool/daycare .......................................................................................................................
Other classroom education ..........................................................................................................
Fast food ......................................................................................................................................
Restaurant/cafeteria .....................................................................................................................
Other food service .......................................................................................................................
Hospital/inpatient health ..............................................................................................................
Nursing home/assisted living .......................................................................................................
Dormitory/fraternity/sorority ..........................................................................................................
Hotel .............................................................................................................................................
Motel or inn ..................................................................................................................................
Other lodging ...............................................................................................................................
Vehicle dealership/showroom ......................................................................................................
Retail store ...................................................................................................................................
Other retail ...................................................................................................................................
Post office/postal center ..............................................................................................................
Repair shop .................................................................................................................................
Vehicle service/repair shop .........................................................................................................
Vehicle storage/maintenance ......................................................................................................
Other service ...............................................................................................................................
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1
1
1
1
1
1
0.7
0.7
1
1
1
1
0.8
0.8
1
1
1
0.9
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.4
0.4
0.4
1
1
1
1
1
1
0.8
0.8
0.8
0.7
0.7
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0.7
0.7
21DEP4
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1
1
1
1
1
1
1.4
1.4
1
1
1
1
0.8
0.8
1
1
1
1.7
1.5
1.5
1.5
1.5
1.5
1.3
1.3
1.3
1.3
1.3
1.1
1.1
1.1
1
1
1
1
1
1
1.2
1.2
1.2
1.5
1.5
1.5
1.5
1.5
168
1.4
1.4
1.4
1.4
1.4
1.4
1.4
2.1
2.1
1.4
1.4
1.4
1.4
1.1
1.1
1.5
1.5
1
1.7
1.5
1.5
1.5
1.5
1.5
1.3
1.3
1.3
1.3
1.3
2.1
2.1
2.1
1
1
1
1
1
1
1.8
1.8
1.8
1.5
1.5
1.5
1.5
1.5
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78423
TABLE VII.1—SHIFT ADJUSTMENT MULTIPLIER BY HOURS OF OPERATION AND BUILDING TYPE—Continued
Weekly hours of operation
Building activity/type
50 or less
Strip shopping mall ......................................................................................................................
Enclosed mall ..............................................................................................................................
Bar/Pub/Lounge ...........................................................................................................................
Courthouse/Probation Office .......................................................................................................
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(ii) Design for construction began
during or after fiscal year 2030. For new
construction or major renovations of all
fossil fuel-using systems in an EISASubject building for which design for
construction or renovation, as
applicable, began during or after fiscal
year 2030, the Scope 1 fossil fuelgenerated energy consumption of the
proposed building, based on building
design and calculated according to
§ 433.201(a), must be zero.
(2) Major Renovations of a Federal
Building System or Component within
an EISA-Subject Building. System level
renovations shall follow the renovation
requirements in section 4.2.1.3 of the
applicable building baseline energy
efficiency standards listed in § 433.100
substituting the ‘‘design for
construction’’ with ‘‘design for
renovation’’ for the relevant date and
shall replace all equipment that is
included in the renovation with all
electric or non-fossil fuel using ENERGY
STAR or Federal Energy Management
Program (FEMP) designated products as
defined in § 436.42. For component
level renovations, Agencies shall
replace all equipment that is part of the
renovation with all electric or non-fossil
fuel using ENERGY STAR or FEMP
designated products as defined in
§ 436.42.
(3) Mixed-use buildings. (i) For
Federal buildings subject to the
requirements of paragraph (c)(1) of this
section that combine two or more
building types identified in Tables 1a to
2a or Tables 1b to 2b 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 A–1a to
A–2a or Tables A–1b to A–2b weighted
by floor area of the two or more building
types. The equation which follows shall
be used for mixed use buildings.
Equation 1: Scope 1 Fossil fuelgenerated energy consumption for a
mixed-use building = the sum
across all building uses of (the
fraction of total floor building floor
area for building use i times the
allowable fossil fuel-generated
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energy consumption for building
use i)
Equation 1 may be rewritten as:
Scope 1 Fossil Fuel-Generated Energy
Consumption for a Mixed Use
Building = Sni=1 (Fraction of Total
Building Floor Area for Building
Use i times Allowable Scope 1
Fossil Fuel-Generated Energy
Consumption for Building Use).
(ii) For example, if a proposed
building for which design for
construction began in FY2026 that is to
be built in climate zone 4a 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
Scope 1 fossil fuel-generated energy
consumption is equal to:
[(100 sqft. × 3 kBtu/yr.-sqft.) + (100 sqft
× 10 kBtu/yr.-sqft.)]/200 sqft. = 6.5
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 A–1a to A–2a or A–1b to A–2b
of appendix A of this subpart, or for
building types in these tables that
contain significant process loads that
are not likely to be found in the
Commercial Buildings Energy
Consumption Survey (CBECS) and
qualify for exemption per § 433.202,
Federal agencies must select the
applicable building type, climate zone,
and fiscal year in which design for
construction began from Tables 1a to 2a
or 1b to 2b of appendix A of this subpart
that most closely corresponds to the
proposed building without the process
load. The estimated Scope 1 fossil fuelgenerated energy consumption of the
process load must be added to the
maximum allowable Scope 1 fossil fuelgenerated energy consumption of the
applicable building type for the
appropriate fiscal year and climate zone
to calculate the maximum allowable
Scope 1 fossil fuel-generated energy
consumption for the building. The same
estimated Scope 1 fossil fuel-generated
energy consumption of the process load
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1
1
1
168
1
1
1
1
1
1
1.4
1.4
that is added to the maximum allowable
Scope 1 fossil fuel-generated energy
consumption of the applicable building
must also be used in determining the
Scope 1 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 A–
1a to A–2a or A–1b to A–2b of appendix
A of this subpart, the maximum
allowable Scope 1 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 A–1a to A–2a or A–1b to A–2b
of appendix A of this subpart, weighted
by floor area.
§ 433.201 Scope 1 Fossil fuel-generated
energy consumption determination.
(a) The fossil fuel¥generated energy
consumption of a proposed building is
calculated as follows:
Equation 2: Fossil fuel-generated energy
consumption = Direct Scope 1
Fossil Fuel-Generated Consumption
of Proposed Building/Floor Area
Where:
Direct Scope 1 Fossil Fuel-Generated Energy
Consumption of Proposed Building
equals the total Scope 1 fossil fuelgenerated energy consumption of the
proposed building calculated in
accordance with the Performance Rating
Method in Appendix G of ASHRAE
90.1–2019 (incorporated by reference;
see § 433.3) and measured in thousands
of British thermal units per year (kBtu/
yr), except that this term does not
include fossil fuel consumption for
emergency electricity generation.
Agencies must include all on-site fossil
fuel use or Scope 1 emissions associated
with non-emergency generation from
backup generators (such as those for
peak shaving or peak shifting). Any
energy generation or Scope 1 emissions
associated with biomass fuels are
excluded. Any emissions associated with
natural gas for alternatively fueled
vehicles (‘‘AFVs’’) (or any other
alternative fuel defined at 42 U.S.C.
13211 that is provided at a Federal
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Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Proposed Rules
building) is excluded. Buildings with
manufacturing or industrial process
loads should be accounted for in the
analysis for the building’s fossil fuel
consumption and GHG emissions but are
not subject to the phase down targets.
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.
lotter on DSK11XQN23PROD with PROPOSALS4
§ 433.202 Petition for downward
adjustment.
(a) New Federal buildings and major
renovations of all Scope 1 fossil fuelusing systems in an EISA-subject
building. (1) Upon petition by a Federal
agency the Director of FEMP may adjust
the applicable maximum allowable
Scope 1 fossil fuel-generated energy
consumption standard with respect to a
specific building, upon written
certification from the head of the agency
designing the building, that the
requested adjustment is the largest
feasible reduction in Scope 1 fossil fuel
energy 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 to the maximum extent
practicable and that each fossil fuel
consuming product included in the
proposed building that is of a product
category covered by the ENERGY STAR
program or FEMP for designated
products is an ENERGY STAR product
or a product meeting the FEMP
designation criteria, as applicable;
(ii) A description of the systems,
technologies, and practices that were
evaluated and unable to meet the
required fossil fuel reduction including
a justification of why achieving the
Scope 1 fossil fuel-generated energy
consumption targets would be
technically impracticable: and
(iii) Any other information the agency
determines would help explain its
request;
(2) The head of the agency designing
the building, 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,
expected number of occupants and
occupant schedule, project type, project
cost, and functional needs, mission
critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1
fossil fuel energy consumption for the
building from § 433.200(c) or (d);
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(iii) The estimated Scope 1 fossil fuel
energy consumption of the proposed
building;
(iv) A description of the proposed
building’s energy-related features,
including but not limited to:
(A) HVAC system type and
configuration;
(B) HVAC equipment sizes and
efficiencies;
(C) Ventilation systems (including
outdoor air volume, controls technique,
heat recovery systems, and economizers,
if applicable);
(D) Service water heating system
configuration and equipment (including
solar hot water, wastewater heat
recovery, and controls for circulating
hot water systems, if applicable);
(E) Estimated industrial process loads;
and
(F) Any other on-site fossil fuel
consuming equipment.
(3) Petitions for downward
adjustment should be submitted to ffpetition@ee.doe.gov, or to: U.S.
Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE–5F,
1000 Independence Ave. SW,
Washington, DC 20585–0121.
(4) The Director of FEMP will make a
best effort to notify the requesting
agency in writing whether the petition
for downward adjustment to the
numeric reduction requirement is
approved or rejected, in 45 calendar
days of submittal, provided that the
petition is complete. 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 of a Scope 1
fossil fuel-using building system or
Scope 1 fossil fuel-using component. (1)
Upon petition by a Federal agency, the
Director of FEMP may adjust the
applicable requirements for the Federal
agency to reduce Scope 1 on-site fossil
fuel-generated energy consumption
standard with respect to a specific
renovation, upon written certification
from the head of the agency designing
the renovation, that the requested
adjustment is the largest feasible
reduction in Scope 1 fossil fuel energy
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 renovation
incorporates commercially available
systems and/or components that
provide a level of energy efficiency that
is life-cycle cost effective as defined in
this part and reduces consumption of
Scope 1 fossil fuel energy to the
maximum extent practicable and that
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Fmt 4701
Sfmt 4702
each fossil fuel consuming product
included in the proposed building that
is of a product category covered by the
ENERGY STAR program or FEMP for
designated products is an ENERGY
STAR product or a product meeting the
FEMP designation criteria, as
applicable.
(ii) A description of the systems,
technologies, and practices that were
evaluated and unable to meet the
required fossil fuel reduction including
a justification of why achieving the
Scope 1 fossil fuel-generated energy
consumption targets would be
technically impracticable: and
(iii) Any other information the agency
determines would help explain its
request.
(2) The head of the agency making the
design decisions for the building, 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,
estimated number of occupants and
occupant schedule, project type, project
cost, and functional needs, mission
critical activity, research, and national
security operations, as applicable;
(ii) The maximum allowable Scope 1
fossil fuel energy consumption for the
building from § 433.200(c) or (d);
(iii) The estimated Scope 1 fossil fuel
energy consumption of the building;
(iv) A description of system(s) or
component(s) that are being renovated,
including but not limited to:
(A) HVAC system or component type
and configuration;
(B) HVAC equipment sizes and
efficiencies;
(C) Ventilation systems or
components (including outdoor air
volume, controls technique, heat
recovery systems, and economizers, if
applicable);
(D) Service water heating system or
component configuration and
equipment (including solar hot water,
wastewater heat recovery, and controls
for circulating hot water systems, if
applicable);
(E) Estimated process loads; and
(F) Any other on-site fossil fuel
consuming equipment.
(3) Petitions for downward
adjustment should be submitted to ffpetition@ee.doe.gov, or to: U.S.
Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE–5F,
1000 Independence Ave. SW,
Washington, DC 20585–0121.
(4) The Director will make a best
effort to notify the requesting agency in
writing whether the petition for
downward adjustment to the numeric
reduction requirement is approved or
E:\FR\FM\21DEP4.SGM
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Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Proposed Rules
rejected, in 45 calendar days of
submittal for major renovations of a
buildings system, and 20 calendar days
for major renovations of a component,
granted the petition is complete. If the
Director rejects the petition, the Director
will forward its reasons for rejection to
the petitioning agency.
(c) Exclusions. The General Services
Administration (GSA) may not submit
petitions under paragraphs (a) and (b) of
this section. Agencies that are tenants of
GSA buildings for which the agency, not
GSA, has significant design control may
submit petitions in accordance with this
section.
Appendix A to Subpart B of Part 433—
Maximum Allowable Fossil FuelGenerated Energy Consumption
lotter on DSK11XQN23PROD with PROPOSALS4
(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 90.1–2019 (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
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21:29 Dec 20, 2022
Jkt 259001
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.
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Fmt 4701
Sfmt 4702
78425
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).
E:\FR\FM\21DEP4.SGM
21DEP4
VerDate Sep<11>2014
College/university .............................
Elementary/middle school ................
High school ......................................
Other classroom education ..............
Preschool/daycare ...........................
Enclosed mall ...................................
Convenience store ...........................
Convenience store with gas station
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 ......................................
Other lodging ...................................
Nursing home/assisted living ...........
Administra tive/professional 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 .......................................
Retail store .......................................
Vehicle dealership/showroom ..........
Other service ....................................
Post office/postal center ..................
Repair shop ......................................
Vehicle service/repair shop ..............
Vehicle storage/maintenance ...........
Strip shopping mall ..........................
Distribution/shipping center ..............
Non-refrigerated warehouse ............
Refrigerated warehouse ...................
0.21
0.33
0.02
0.13
0.30
0.35
0.33
0.24
0.35
1.09
2.06
0.27
1.47
1.06
0.79
0.51
0.46
0.60
0.23
0.82
0.30
0.18
0.31
0.34
0.26
0.40
0.25
0.27
0.20
0.23
0.23
0.24
0.30
0.54
0.26
0.24
0.40
0.01
0.56
0.58
0.24
0.18
0.37
0.29
0.35
0.20
0.19
0.03
0A
0.22
0.34
0.02
0.13
0.31
0.35
0.34
0.24
0.36
1.11
2.09
0.27
1.49
1.08
0.80
0.51
0.47
0.61
0.24
0.83
0.31
0.19
0.31
0.35
0.27
0.40
0.25
0.27
0.20
0.24
0.24
0.24
0.30
0.55
0.27
0.24
0.40
0.01
0.57
0.59
0.25
0.18
0.37
0.30
0.35
0.20
0.19
0.04
0B
0.23
0.36
0.06
0.14
0.33
0.38
0.36
0.26
0.38
1.18
2.23
0.29
1.59
1.13
0.85
0.55
0.50
0.65
0.25
0.88
0.33
0.20
0.33
0.37
0.28
0.43
0.27
0.29
0.21
0.25
0.25
0.26
0.32
0.58
0.29
0.26
0.43
0.04
0.60
0.63
0.26
0.20
0.39
0.31
0.38
0.21
0.20
0.04
1A
0.28
0.44
0.17
0.16
0.40
0.46
0.43
0.31
0.46
1.43
2.70
0.35
1.92
1.31
1.03
0.66
0.60
0.78
0.30
1.07
0.39
0.24
0.40
0.45
0.34
0.52
0.33
0.35
0.25
0.30
0.31
0.31
0.39
0.70
0.35
0.31
0.52
0.11
0.73
0.76
0.32
0.24
0.48
0.38
0.45
0.26
0.25
0.05
1B
2B
3A
3B
3C
4A
4B
4C
0.35
0.54
0.34
0.20
0.49
0.57
0.54
0.39
0.58
1.78
3.37
0.44
2.40
1.56
1.28
0.83
0.75
0.98
0.38
1.33
0.49
0.30
0.50
0.56
0.43
0.65
0.41
0.44
0.32
0.38
0.38
0.39
0.49
0.88
0.43
0.39
0.65
0.22
0.91
0.95
0.40
0.30
0.60
0.47
0.57
0.32
0.31
0.06
0.33
0.51
0.29
0.19
0.46
0.54
0.51
0.36
0.54
1.68
3.16
0.41
2.25
1.48
1.21
0.78
0.71
0.92
0.36
1.25
0.46
0.28
0.47
0.52
0.40
0.61
0.38
0.41
0.30
0.36
0.36
0.37
0.46
0.83
0.40
0.37
0.61
0.18
0.86
0.89
0.37
0.28
0.56
0.45
0.53
0.31
0.29
0.05
0.47
0.73
0.62
0.27
0.66
0.76
0.73
0.52
0.77
2.38
4.50
0.59
3.21
1.99
1.72
1.10
1.00
1.31
0.51
1.78
0.66
0.40
0.67
0.74
0.58
0.86
0.55
0.58
0.43
0.51
0.51
0.53
0.65
1.17
0.58
0.52
0.86
0.40
1.22
1.27
0.53
0.40
0.80
0.63
0.76
0.43
0.41
0.08
0.42
0.65
0.50
0.25
0.59
0.68
0.65
0.46
0.69
2.13
4.02
0.52
2.87
1.81
1.53
0.99
0.90
1.17
0.45
1.60
0.59
0.36
0.60
0.66
0.51
0.77
0.49
0.52
0.38
0.45
0.46
0.47
0.58
1.05
0.52
0.47
0.77
0.32
1.09
1.13
0.47
0.35
0.71
0.57
0.68
0.39
0.37
0.07
0.47
0.73
0.62
0.27
0.66
0.76
0.73
0.52
0.78
2.39
4.51
0.59
3.21
2.00
1.72
1.11
1.01
1.31
0.51
1.79
0.66
0.40
0.67
0.74
0.58
0.87
0.55
0.59
0.43
0.51
0.51
0.53
0.65
1.18
0.58
0.52
0.86
0.40
1.22
1.27
0.53
0.40
0.80
0.64
0.76
0.44
0.41
0.08
0.61
0.95
0.96
0.36
0.87
1.00
0.95
0.68
1.01
3.12
5.90
0.77
4.20
2.53
2.25
1.45
1.32
1.71
0.66
2.34
0.86
0.53
0.88
0.97
0.75
1.13
0.71
0.77
0.56
0.67
0.67
0.69
0.85
1.54
0.75
0.68
1.13
0.62
1.60
1.66
0.69
0.52
1.04
0.83
0.99
0.57
0.54
0.10
0.59
0.92
0.90
0.35
0.83
0.96
0.91
0.65
0.97
3.00
5.67
0.74
4.04
2.44
2.16
1.39
1.26
1.65
0.64
2.25
0.83
0.50
0.84
0.94
0.72
1.09
0.69
0.74
0.54
0.64
0.64
0.66
0.82
1.48
0.73
0.66
1.09
0.58
1.54
1.60
0.67
0.50
1.00
0.80
0.96
0.55
0.52
0.10
0.60
0.94
0.94
0.35
0.85
0.99
0.94
0.67
1.00
3.08
5.82
0.76
4.15
2.50
2.22
1.43
1.30
1.69
0.65
2.31
0.85
0.52
0.87
0.96
0.74
1.12
0.71
0.76
0.55
0.66
0.66
0.68
0.84
1.52
0.74
0.67
1.12
0.61
1.58
1.64
0.69
0.51
1.03
0.82
0.98
0.56
0.53
0.10
Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
2A
-
Building type
Climate zone:
-
Education .............................
Education .............................
Education .............................
Education .............................
Education .............................
Enclosed Mall .......................
Food Sales ...........................
Food Sales ...........................
Food Sales ...........................
Food Sales ...........................
Food Service ........................
Food Service ........................
Food Service ........................
Inpatient Health Care ...........
Laboratory ............................
Lodging .................................
Lodging .................................
Lodging .................................
Lodging .................................
Nursing .................................
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 .................................
Strip Shopping Mall ..............
Warehouse ...........................
Warehouse ...........................
Warehouse ...........................
Building category
[CO2e/yr-sqft]
0.76
1.19
1.33
0.45
1.08
1.25
1.19
0.85
1.27
3.91
7.39
0.96
5.26
3.10
2.82
1.81
1.65
2.14
0.83
2.93
1.08
0.66
1.10
1.22
0.94
1.42
0.90
0.96
0.70
0.83
0.84
0.86
1.06
1.93
0.95
0.85
1.42
0.85
2.00
2.08
0.87
0.65
1.31
1.04
1.25
0.71
0.68
0.12
5A
0.72
1.13
1.22
0.42
1.02
1.18
1.12
0.80
1.20
3.69
6.97
0.91
4.96
2.93
2.66
1.71
1.55
2.02
0.78
2.76
1.02
0.62
1.04
1.15
0.89
1.34
0.84
0.90
0.66
0.79
0.79
0.81
1.00
1.82
0.89
0.81
1.34
0.79
1.89
1.96
0.82
0.61
1.23
0.98
1.17
0.67
0.64
0.12
5B
0.64
1.01
1.04
0.38
0.92
1.06
1.00
0.72
1.07
3.30
6.24
0.81
4.44
2.66
2.38
1.53
1.39
1.81
0.70
2.47
0.91
0.56
0.93
1.03
0.80
1.20
0.76
0.81
0.59
0.70
0.71
0.73
0.90
1.63
0.80
0.72
1.20
0.67
1.69
1.76
0.73
0.55
1.10
0.88
1.05
0.60
0.57
0.11
5C
0.89
1.38
1.62
0.52
1.26
1.45
1.38
0.98
1.47
4.54
8.56
1.11
6.10
3.54
3.26
2.10
1.91
2.49
0.96
3.39
1.25
0.76
1.27
1.41
1.10
1.64
1.04
1.11
0.81
0.97
0.97
1.00
1.23
2.23
1.10
0.99
1.64
1.04
2.32
2.41
1.01
0.75
1.51
1.21
1.44
0.83
0.78
0.14
6A
0.89
1.39
1.63
0.52
1.26
1.46
1.39
0.99
1.48
4.56
8.60
1.12
6.13
3.56
3.28
2.11
1.92
2.50
0.97
3.41
1.26
0.77
1.28
1.42
1.10
1.65
1.04
1.12
0.81
0.97
0.97
1.00
1.24
2.25
1.10
1.00
1.65
1.05
2.33
2.42
1.01
0.76
1.52
1.21
1.45
0.83
0.79
0.15
6B
1.04
1.63
1.99
0.61
1.48
1.71
1.62
1.16
1.73
5.33
10.06
1.31
7.17
4.12
3.83
2.47
2.24
2.92
1.13
3.99
1.47
0.90
1.50
1.66
1.29
1.93
1.22
1.31
0.95
1.14
1.14
1.17
1.45
2.62
1.29
1.16
1.93
1.28
2.72
2.83
1.19
0.89
1.78
1.42
1.70
0.97
0.92
0.17
7
8
1.39
2.17
2.82
0.82
1.97
2.27
2.16
1.54
2.30
7.11
13.41
1.74
9.56
5.40
5.11
3.29
2.99
3.90
1.51
5.32
1.96
1.19
2.00
2.21
1.72
2.58
1.63
1.74
1.27
1.51
1.52
1.57
1.93
3.50
1.72
1.55
2.57
1.81
3.63
3.78
1.58
1.18
2.37
1.89
2.26
1.29
1.23
0.23
TABLE A–1a—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
lotter on DSK11XQN23PROD with PROPOSALS4
78426
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-
-
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VerDate Sep<11>2014
2
3
0
1
3
3
3
2
3
10
19
2
13
10
7
5
4
5
2
7
3
2
3
3
2
4
2
2
2
2
2
2
3
5
2
2
4
0
5
5
2
2
3
3
3
2
2
0
2
3
0
1
3
3
3
2
3
10
19
2
14
10
7
5
4
6
2
8
3
2
3
3
2
4
2
2
2
2
2
2
3
5
2
2
4
0
5
5
2
2
3
3
3
2
2
0
0B
2
3
1
1
3
3
3
2
3
11
20
3
14
10
8
5
5
6
2
8
3
2
3
3
3
4
2
3
2
2
2
2
3
5
3
2
4
0
5
6
2
2
4
3
3
2
2
0
1A
3
4
2
1
4
4
4
3
4
13
24
3
17
12
9
6
5
7
3
10
4
2
4
4
3
5
3
3
2
3
3
3
4
6
3
3
5
1
7
7
3
2
4
3
4
2
2
0
1B
2B
3A
3B
3C
4A
4B
4C
3
5
3
2
4
5
5
4
5
16
31
4
22
14
12
7
7
9
3
12
4
3
5
5
4
6
4
4
3
3
3
4
4
8
4
4
6
2
8
9
4
3
5
4
5
3
3
1
3
5
3
2
4
5
5
3
5
15
29
4
20
13
11
7
6
8
3
11
4
3
4
5
4
6
3
4
3
3
3
3
4
7
4
3
6
2
8
8
3
3
5
4
5
3
3
0
4
7
6
2
6
7
7
5
7
22
41
5
29
18
16
10
9
12
5
16
6
4
6
7
5
8
5
5
4
5
5
5
6
11
5
5
8
4
11
12
5
4
7
6
7
4
4
1
4
6
5
2
5
6
6
4
6
19
37
5
26
16
14
9
8
11
4
14
5
3
5
6
5
7
4
5
3
4
4
4
5
10
5
4
7
3
10
10
4
3
6
5
6
4
3
1
4
7
6
2
6
7
7
5
7
22
41
5
29
18
16
10
9
12
5
16
6
4
6
7
5
8
5
5
4
5
5
5
6
11
5
5
8
4
11
12
5
4
7
6
7
4
4
1
6
9
9
3
8
9
9
6
9
28
54
7
38
23
20
13
12
16
6
21
8
5
8
9
7
10
6
7
5
6
6
6
8
14
7
6
10
6
14
15
6
5
9
8
9
5
5
1
5
8
8
3
8
9
8
6
9
27
51
7
37
22
20
13
11
15
6
20
8
5
8
8
7
10
6
7
5
6
6
6
7
13
7
6
10
5
14
14
6
5
9
7
9
5
5
1
5
9
9
3
8
9
9
6
9
28
53
7
38
23
20
13
12
15
6
21
8
5
8
9
7
10
6
7
5
6
6
6
8
14
7
6
10
5
14
15
6
5
9
7
9
5
5
1
Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
2A
-
College/university ...................................
Elementary/middle school ......................
High school ............................................
Other classroom education ....................
Preschool/daycare ..................................
Enclosed mall .........................................
Convenience store .................................
Convenience store with gas station .......
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 ............................................
Other lodging ..........................................
Nursing home/assisted living .................
Administrative/professional 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 .............................................
Retail store .............................................
Vehicle dealership/showroom ................
Other service ..........................................
Post office/postal center .........................
Repair shop ............................................
Vehicle service/repair shop ....................
Vehicle storage/maintenance .................
Strip shopping mall ................................
Distribution/shipping center ....................
Non-refrigerated warehouse ..................
Refrigerated warehouse .........................
0A
-
Building type
Climate zone:
-
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Enclosed Mall .............................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Service ..............................
Food Service ..............................
Food Service ..............................
Inpatient Health Care .................
Laboratory ..................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Nursing .......................................
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 .......................................
Strip Shopping Mall ....................
Warehouse .................................
Warehouse .................................
Warehouse .................................
Building category
[Source kBtu/yr-sqft]
7
11
12
4
10
11
11
8
12
36
67
9
48
28
26
16
15
19
8
27
10
6
10
11
9
13
8
9
6
8
8
8
10
17
9
8
13
8
18
19
8
6
12
9
11
6
6
1
5A
7
10
11
4
9
11
10
7
11
33
63
8
45
27
24
16
14
18
7
25
9
6
9
10
8
12
8
8
6
7
7
7
9
16
8
7
12
7
17
18
7
6
11
9
11
6
6
1
5B
6
9
9
3
8
10
9
7
10
30
57
7
40
24
22
14
13
16
6
22
8
5
8
9
7
11
7
7
5
6
6
7
8
15
7
7
11
6
15
16
7
5
10
8
10
5
5
1
5C
8
13
15
5
11
13
13
9
13
41
78
10
55
32
30
19
17
23
9
31
11
7
12
13
10
15
9
10
7
9
9
9
11
20
10
9
15
9
21
22
9
7
14
11
13
7
7
1
6A
8
13
15
5
11
13
13
9
13
41
78
10
56
32
30
19
17
23
9
31
11
7
12
13
10
15
9
10
7
9
9
9
11
20
10
9
15
9
21
22
9
7
14
11
13
8
7
1
6B
9
15
18
6
13
15
15
10
16
48
91
12
65
37
35
22
20
27
10
36
13
8
14
15
12
18
11
12
9
10
10
11
13
24
12
11
17
12
25
26
11
8
16
13
15
9
8
2
7
TABLE A–1b—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
lotter on DSK11XQN23PROD with PROPOSALS4
13
20
26
7
18
21
20
14
21
64
122
16
87
49
46
30
27
35
14
48
18
11
18
20
16
23
15
16
11
14
14
14
18
32
16
14
23
16
33
34
14
11
22
17
21
12
11
2
8
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21:29 Dec 20, 2022
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PO 00000
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21DEP4
78427
-
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VerDate Sep<11>2014
College/university ...................................
Elementary/middle school ......................
High school ............................................
Other classroom education ....................
Preschool/daycare ..................................
Enclosed mall .........................................
Convenience store .................................
Convenience store with gas station .......
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 ............................................
Other lodging ..........................................
Nursing home/assisted living .................
Administrative/professional 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 .............................................
Retail store .............................................
Vehicle dealership/showroom ................
Other service ..........................................
Post office/postal center .........................
Repair shop ............................................
Vehicle service/repair shop ....................
Vehicle storage/maintenance .................
Strip shopping mall ................................
Distribution/shipping center ....................
Non-refrigerated warehouse ..................
Refrigerated warehouse .........................
0.11
0.17
0.01
0.06
0.15
0.17
0.17
0.12
0.18
0.55
1.03
0.13
0.74
0.53
0.39
0.25
0.23
0.30
0.12
0.41
0.15
0.09
0.15
0.17
0.13
0.20
0.13
0.13
0.10
0.12
0.12
0.12
0.15
0.27
0.13
0.12
0.20
0.01
0.28
0.29
0.12
0.09
0.18
0.15
0.17
0.10
0.09
0.02
0A
0.11
0.17
0.01
0.06
0.15
0.18
0.17
0.12
0.18
0.55
1.05
0.14
0.75
0.54
0.40
0.26
0.23
0.30
0.12
0.42
0.15
0.09
0.16
0.17
0.13
0.20
0.13
0.14
0.10
0.12
0.12
0.12
0.15
0.27
0.13
0.12
0.20
0.01
0.28
0.29
0.12
0.09
0.19
0.15
0.18
0.10
0.10
0.02
0B
0.12
0.18
0.03
0.07
0.16
0.19
0.18
0.13
0.19
0.59
1.11
0.14
0.79
0.56
0.42
0.27
0.25
0.32
0.13
0.44
0.16
0.10
0.17
0.18
0.14
0.21
0.13
0.14
0.11
0.13
0.13
0.13
0.16
0.29
0.14
0.13
0.21
0.02
0.30
0.31
0.13
0.10
0.20
0.16
0.19
0.11
0.10
0.02
1A
0.14
0.22
0.09
0.08
0.20
0.23
0.22
0.15
0.23
0.71
1.35
0.18
0.96
0.65
0.51
0.33
0.30
0.39
0.15
0.53
0.20
0.12
0.20
0.22
0.17
0.26
0.16
0.18
0.13
0.15
0.15
0.16
0.19
0.35
0.17
0.16
0.26
0.06
0.37
0.38
0.16
0.12
0.24
0.19
0.23
0.13
0.12
0.02
1B
2B
3A
3B
3C
4A
4B
4C
0.17
0.27
0.17
0.10
0.25
0.29
0.27
0.19
0.29
0.89
1.68
0.22
1.20
0.78
0.64
0.41
0.38
0.49
0.19
0.67
0.25
0.15
0.25
0.28
0.22
0.32
0.20
0.22
0.16
0.19
0.19
0.20
0.24
0.44
0.22
0.19
0.32
0.11
0.46
0.47
0.20
0.15
0.30
0.24
0.28
0.16
0.15
0.03
0.16
0.26
0.14
0.10
0.23
0.27
0.25
0.18
0.27
0.84
1.58
0.21
1.13
0.74
0.60
0.39
0.35
0.46
0.18
0.63
0.23
0.14
0.24
0.26
0.20
0.30
0.19
0.21
0.15
0.18
0.18
0.18
0.23
0.41
0.20
0.18
0.30
0.09
0.43
0.45
0.19
0.14
0.28
0.22
0.27
0.15
0.14
0.03
0.23
0.36
0.31
0.14
0.33
0.38
0.36
0.26
0.39
1.19
2.25
0.29
1.60
1.00
0.86
0.55
0.50
0.65
0.25
0.89
0.33
0.20
0.33
0.37
0.29
0.43
0.27
0.29
0.21
0.25
0.25
0.26
0.32
0.59
0.29
0.26
0.43
0.20
0.61
0.63
0.27
0.20
0.40
0.32
0.38
0.22
0.21
0.04
0.21
0.33
0.25
0.12
0.30
0.34
0.32
0.23
0.35
1.07
2.01
0.26
1.43
0.91
0.77
0.49
0.45
0.58
0.23
0.80
0.29
0.18
0.30
0.33
0.26
0.39
0.24
0.26
0.19
0.23
0.23
0.23
0.29
0.53
0.26
0.23
0.39
0.16
0.55
0.57
0.24
0.18
0.36
0.28
0.34
0.19
0.18
0.03
0.23
0.36
0.31
0.14
0.33
0.38
0.36
0.26
0.39
1.19
2.26
0.29
1.61
1.00
0.86
0.55
0.50
0.66
0.25
0.89
0.33
0.20
0.34
0.37
0.29
0.43
0.27
0.29
0.21
0.25
0.26
0.26
0.33
0.59
0.29
0.26
0.43
0.20
0.61
0.64
0.27
0.20
0.40
0.32
0.38
0.22
0.21
0.04
0.30
0.48
0.48
0.18
0.43
0.50
0.48
0.34
0.51
1.56
2.95
0.38
2.10
1.26
1.12
0.72
0.66
0.86
0.33
1.17
0.43
0.26
0.44
0.49
0.38
0.57
0.36
0.38
0.28
0.33
0.33
0.34
0.42
0.77
0.38
0.34
0.57
0.31
0.80
0.83
0.35
0.26
0.52
0.42
0.50
0.28
0.27
0.05
0.29
0.46
0.45
0.17
0.42
0.48
0.46
0.33
0.49
1.50
2.83
0.37
2.02
1.22
1.08
0.70
0.63
0.82
0.32
1.12
0.41
0.25
0.42
0.47
0.36
0.54
0.34
0.37
0.27
0.32
0.32
0.33
0.41
0.74
0.36
0.33
0.54
0.29
0.77
0.80
0.33
0.25
0.50
0.40
0.48
0.27
0.26
0.05
0.30
0.47
0.47
0.18
0.43
0.49
0.47
0.33
0.50
1.54
2.91
0.38
2.07
1.25
1.11
0.71
0.65
0.84
0.33
1.15
0.43
0.26
0.43
0.48
0.37
0.56
0.35
0.38
0.27
0.33
0.33
0.34
0.42
0.76
0.37
0.34
0.56
0.30
0.79
0.82
0.34
0.26
0.51
0.41
0.49
0.28
0.27
0.05
Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
2A
-
Building Type
Climate zone:
-
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Enclosed Mall .............................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Service ..............................
Food Service ..............................
Food Service ..............................
Inpatient Health Care .................
Laboratory ..................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Nursing .......................................
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 .......................................
Strip Shopping Mall ....................
Warehouse .................................
Warehouse .................................
Warehouse .................................
Building category
[CO2e/yr-sqft]
0.38
0.60
0.66
0.22
0.54
0.63
0.60
0.42
0.63
1.96
3.69
0.48
2.63
1.55
1.41
0.91
0.82
1.07
0.42
1.46
0.54
0.33
0.55
0.61
0.47
0.71
0.45
0.48
0.35
0.42
0.42
0.43
0.53
0.96
0.47
0.43
0.71
0.43
1.00
1.04
0.44
0.33
0.65
0.52
0.62
0.36
0.34
0.06
5A
0.36
0.56
0.61
0.21
0.51
0.59
0.56
0.40
0.60
1.85
3.48
0.45
2.48
1.47
1.33
0.85
0.78
1.01
0.39
1.38
0.51
0.31
0.52
0.58
0.45
0.67
0.42
0.45
0.33
0.39
0.39
0.41
0.50
0.91
0.45
0.40
0.67
0.39
0.94
0.98
0.41
0.31
0.62
0.49
0.59
0.34
0.32
0.06
5B
0.32
0.50
0.52
0.19
0.46
0.53
0.50
0.36
0.54
1.65
3.12
0.41
2.22
1.33
1.19
0.76
0.70
0.91
0.35
1.24
0.46
0.28
0.46
0.51
0.40
0.60
0.38
0.41
0.29
0.35
0.35
0.36
0.45
0.81
0.40
0.36
0.60
0.34
0.84
0.88
0.37
0.27
0.55
0.44
0.53
0.30
0.29
0.05
5C
0.44
0.69
0.81
0.26
0.63
0.73
0.69
0.49
0.74
2.27
4.28
0.56
3.05
1.77
1.63
1.05
0.96
1.24
0.48
1.70
0.63
0.38
0.64
0.71
0.55
0.82
0.52
0.56
0.40
0.48
0.49
0.50
0.62
1.12
0.55
0.50
0.82
0.52
1.16
1.21
0.50
0.38
0.76
0.60
0.72
0.41
0.39
0.07
6A
0.44
0.70
0.81
0.26
0.63
0.73
0.69
0.49
0.74
2.28
4.30
0.56
3.06
1.78
1.64
1.06
0.96
1.25
0.48
1.71
0.63
0.38
0.64
0.71
0.55
0.83
0.52
0.56
0.41
0.49
0.49
0.50
0.62
1.12
0.55
0.50
0.82
0.52
1.17
1.21
0.51
0.38
0.76
0.61
0.73
0.41
0.39
0.07
6B
0.52
0.81
0.99
0.31
0.74
0.85
0.81
0.58
0.86
2.66
5.03
0.65
3.58
2.06
1.92
1.23
1.12
1.46
0.57
1.99
0.74
0.45
0.75
0.83
0.64
0.97
0.61
0.65
0.48
0.57
0.57
0.59
0.72
1.31
0.64
0.58
0.96
0.64
1.36
1.42
0.59
0.44
0.89
0.71
0.85
0.49
0.46
0.08
7
TABLE A–2a—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
lotter on DSK11XQN23PROD with PROPOSALS4
0.69
1.08
1.41
0.41
0.98
1.14
1.08
0.77
1.15
3.55
6.71
0.87
4.78
2.70
2.56
1.65
1.50
1.95
0.75
2.66
0.98
0.60
1.00
1.11
0.86
1.29
0.81
0.87
0.63
0.76
0.76
0.78
0.97
1.75
0.86
0.78
1.29
0.90
1.82
1.89
0.79
0.59
1.19
0.95
1.13
0.65
0.61
0.11
8
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1
2
0
1
1
2
2
1
2
5
9
1
7
5
4
2
2
3
1
4
1
1
1
2
1
2
1
1
1
1
1
1
1
2
1
1
2
0
3
3
1
1
2
1
2
1
1
0
1
2
0
1
1
2
2
1
2
5
9
1
7
5
4
2
2
3
1
4
1
1
1
2
1
2
1
1
1
1
1
1
1
2
1
1
2
0
3
3
1
1
2
1
2
1
1
0
0B
1
2
0
1
1
2
2
1
2
5
10
1
7
5
4
2
2
3
1
4
1
1
2
2
1
2
1
1
1
1
1
1
1
3
1
1
2
0
3
3
1
1
2
1
2
1
1
0
1A
1
2
1
1
2
2
2
1
2
6
12
2
9
6
5
3
3
4
1
5
2
1
2
2
2
2
1
2
1
1
1
1
2
3
2
1
2
1
3
3
1
1
2
2
2
1
1
0
1B
2B
3A
3B
3C
4A
4B
4C
2
2
2
1
2
3
2
2
3
8
15
2
11
7
6
4
3
4
2
6
2
1
2
3
2
3
2
2
1
2
2
2
2
4
2
2
3
1
4
4
2
1
3
2
3
1
1
0
1
2
1
1
2
2
2
2
2
8
14
2
10
7
5
4
3
4
2
6
2
1
2
2
2
3
2
2
1
2
2
2
2
4
2
2
3
1
4
4
2
1
3
2
2
1
1
0
2
3
3
1
3
3
3
2
4
11
20
3
15
9
8
5
5
6
2
8
3
2
3
3
3
4
2
3
2
2
2
2
3
5
3
2
4
2
6
6
2
2
4
3
3
2
2
0
2
3
2
1
3
3
3
2
3
10
18
2
13
8
7
4
4
5
2
7
3
2
3
3
2
4
2
2
2
2
2
2
3
5
2
2
3
1
5
5
2
2
3
3
3
2
2
0
2
3
3
1
3
3
3
2
4
11
20
3
15
9
8
5
5
6
2
8
3
2
3
3
3
4
2
3
2
2
2
2
3
5
3
2
4
2
6
6
2
2
4
3
3
2
2
0
3
4
4
2
4
5
4
3
5
14
27
3
19
11
10
7
6
8
3
11
4
2
4
4
3
5
3
3
3
3
3
3
4
7
3
3
5
3
7
8
3
2
5
4
5
3
2
0
3
4
4
2
4
4
4
3
4
14
26
3
18
11
10
6
6
7
3
10
4
2
4
4
3
5
3
3
2
3
3
3
4
7
3
3
5
3
7
7
3
2
5
4
4
2
2
0
3
4
4
2
4
4
4
3
5
14
26
3
19
11
10
6
6
8
3
10
4
2
4
4
3
5
3
3
2
3
3
3
4
7
3
3
5
3
7
7
3
2
5
4
4
3
2
0
Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
2A
-
College/university ...................................
Elementary/middle school ......................
High school ............................................
Other classroom education ....................
Preschool/daycare ..................................
Enclosed mall .........................................
Convenience store .................................
Convenience store with gas station .......
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 ............................................
Other lodging ..........................................
Nursing home/assisted living .................
Administrative/professional 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 .............................................
Retail store .............................................
Vehicle dealership/showroom ................
Other service ..........................................
Post office/postal center .........................
Repair shop ............................................
Vehicle service/repair shop ....................
Vehicle storage/maintenance .................
Strip shopping mall ................................
Distribution/shipping center ....................
Non-refrigerated warehouse ..................
Refrigerated warehouse .........................
0A
-
Building Type
Climate zone:
-
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Education ...................................
Enclosed Mall .............................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Sales .................................
Food Service ..............................
Food Service ..............................
Food Service ..............................
Inpatient Health Care .................
Laboratory ..................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Lodging ......................................
Nursing .......................................
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 .......................................
Strip Shopping Mall ....................
Warehouse .................................
Warehouse .................................
Warehouse .................................
Building category
[Site kBtu/yr-sqft]
3
5
6
2
5
6
5
4
6
18
34
4
24
14
13
8
7
10
4
13
5
3
5
6
4
6
4
4
3
4
4
4
5
9
4
4
6
4
9
9
4
3
6
5
6
3
3
1
5A
3
5
6
2
5
5
5
4
5
17
32
4
23
13
12
8
7
9
4
13
5
3
5
5
4
6
4
4
3
4
4
4
5
8
4
4
6
4
9
9
4
3
6
4
5
3
3
1
5B
3
5
5
2
4
5
5
3
5
15
28
4
20
12
11
7
6
8
3
11
4
3
4
5
4
5
3
4
3
3
3
3
4
7
4
3
5
3
8
8
3
2
5
4
5
3
3
0
5C
4
6
7
2
6
7
6
4
7
21
39
5
28
16
15
10
9
11
4
15
6
3
6
6
5
7
5
5
4
4
4
5
6
10
5
4
7
5
11
11
5
3
7
5
7
4
4
1
6A
4
6
7
2
6
7
6
4
7
21
39
5
28
16
15
10
9
11
4
15
6
3
6
6
5
7
5
5
4
4
4
5
6
10
5
5
7
5
11
11
5
3
7
6
7
4
4
1
6B
5
7
9
3
7
8
7
5
8
24
46
6
33
19
17
11
10
13
5
18
7
4
7
8
6
9
6
6
4
5
5
5
7
12
6
5
9
6
12
13
5
4
8
6
8
4
4
1
7
TABLE A–2b—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
lotter on DSK11XQN23PROD with PROPOSALS4
6
10
13
4
9
10
10
7
10
32
61
8
43
24
23
15
14
18
7
24
9
5
9
10
8
12
7
8
6
7
7
7
9
16
8
7
12
8
16
17
7
5
11
9
10
6
6
1
8
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78429
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78430
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Proposed Rules
PART 435—ENERGY EFFICIENCY
STANDARDS FOR THE DESIGN AND
CONSTRUCTION OF NEW FEDERAL
LOW–RISE RESIDENTIAL BUILDINGS
6. 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.
7. Amend § 435.1, by adding
paragraph (b) to read as follows:
■
§ 435.1
Purpose and scope.
*
*
*
*
*
(b) This part also establishes a
maximum allowable fossil fuelgenerated 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
December 21, 2023.
*
*
*
*
*
■ 8. Amend § 435.2 by:
■ a. Adding in alphabetical order, the
definitions of ‘‘Construction cost,’’
‘‘Design for renovation’’, ‘‘EISA-subject
building or project’’, ‘‘Federal building,’’
‘‘Fiscal year (FY),’’ ‘‘Major renovation,’’
‘‘Major renovation cost,’’ ‘‘Major
renovation of all Scope fossil fuel-using
systems in a building,’’ and ‘‘Major
renovation of a Scope 1 fossil fuel-using
building system or Scope 1 fossil fuelusing component’’;
■ b. Revising the definitions of
‘‘Proposed building’’; and
■ c. Adding in alphabetical order, the
definitions of ‘‘Scope 1 fossil fuelgenerated energy consumption’’ and
‘‘Shift adjustment multiplier’’ and
‘‘Technical impracticability’’.
The additions and revision read as
follows:
§ 435.2
Definitions.
lotter on DSK11XQN23PROD with PROPOSALS4
*
*
*
*
*
Construction cost means all costs
associated with design and construction
of a Federal 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.
*
*
*
*
*
Design for renovation means the stage
when the energy efficiency and
sustainability details (such as insulation
levels, HVAC systems, water-using
systems, etc.) are either explicitly
determined or implicitly included in a
renovation project cost specification.
*
*
*
*
*
EISA-subject building or project
means, for purposes of this rule, any
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new building or renovation project that
is subject to the cost thresholds and
reporting requirements in Section 433 of
EISA 2007 ((42 U.S.C. 6834(a)(3)(D)(i))).
The cost threshold referenced in Section
433 of EISA is $2.5 million in 2007
dollars. GSA provides a table of annual
updates to this cost threshold at https://
www.gsa.gov/real-estate/design-andconstruction/annual-prospectusthresholds. GSA also provides a second
cost threshold for renovations of leased
buildings that is 1⁄2 of the cost threshold
for renovation of Federally owned
buildings.
*
*
*
*
*
Federal building as defined in 42
U.S.C. 6832 means 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.
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 either major
renovation of all Scope 1 fossil fuelgenerated/consuming systems in a
building or major renovation of one or
more Scope 1 fossil fuel-using building
systems or components, as defined in
this section.
Major renovation cost means:
(1) Preliminary planning, engineering,
architectural, legal, fiscal, and economic
investigations and studies, surveys,
designs, plans, working drawings,
specifications, procedures, and other
similar actions necessary for the
alteration of a public building; and (2)
Repairing, remodeling, improving, or
extending, or other changes in, a public
building as per 40 U.S.C. 3301(a)(1).
Major renovation of all Scope 1 fossil
fuel-using systems in a building means
construction on an existing building
that is so extensive that it replaces all
Scope 1 fossil fuel-using systems in the
building. This term includes, but is not
limited to, comprehensive replacement
or restoration of most or all major
systems, interior work (such as ceilings,
partitions, doors, floor finishes, etc.), or
building elements and features.
Major renovation of a Scope 1 fossil
fuel-using building system or Scope 1
fossil fuel-using component means
changes to a building that provide
significant opportunities for energy
efficiency or reduction in fossil fuelrelated energy consumption. This
includes, but is not limited to,
replacement of the HVAC system, hot
water system, or cooking system, or
other fossil fuel-using systems or
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components of the building that have a
major impact on fossil fuel usage.
*
*
*
*
*
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.
Scope 1 fossil fuel-generated energy
consumption means, for purposes of
this rule, the on-site stationary
combustion of fossil fuels that
contribute to Scope 1 emissions for
generation of electricity, heat, cooling,
or steam as defined by ‘‘Federal
Greenhouse Gas Accounting and
Reporting Guidance’’ (Council on
Environmental Quality, January 17,
2016). Emissions that result from
combustion of fuels in stationary
sources (e.g., boilers, furnaces, turbines,
and emergency generators). This term
does not include mobile sources,
fugitive emissions, or process emissions
as defined by ‘‘Federal Greenhouse Gas
Accounting and Reporting Guidance’’
(Council on Environmental Quality,
January 17, 2016).
Shift adjustment multiplier means
that agencies can apply a multiplication
factor to their Maximum Allowable
Fossil Fuel-Generated Energy
Consumption by Building Category
target based upon the weekly hours of
active operation of the building. The
weekly hours of operation to use as a
basis for the shift adjustment multiplier
lookup should be based upon the time
in which in the building is actively
occupied and operating per its intended
use type and should include
unoccupied hours or other times of
limited use (such as night-time setback
hours).
Technical impracticability means
achieving the Scope 1 fossil fuelgenerated energy consumption targets
would—
(1) Not be feasible from an
engineering design or execution
standpoint due to existing physical or
site constraints that prohibit
modification or addition of elements or
spaces,
(2) Significantly obstruct building
operations and the functional needs of
a building, specifically for industrial
process loads, critical national security
functions, mission critical information
systems as defined in NIST SP 800–60
Vol. 2 Rev. 1, and research operations,
or
(3) Significantly degrade energy
resiliency and energy security of
building operations as defined in 10
U.S.C. 101(e)(6) and 10 U.S.C. 101(e)(7)
respectively. Upon determination that
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complying with the Clean Energy Rule
is technically impracticable, the
building is still required to reduce fossil
fuel consumption to the maximum
extent practicable. Technical
impracticability may include technology
availability and cost considerations but
may not be based solely on cost
considerations.
■ 9. Amend § 435.3 by revising
paragraph (b)(4) to read as follows:
§ 435.3 Materials incorporated by
reference.
*
*
*
*
*
(b) * * *
(4) ICC 2021 International Energy
Conservation Code (IECC), Redline
Version, Copyright 2021, (‘‘IECC 2021’’),
IBR approved for §§ 435.2, 435.5,
435.201, and appendix A to this
subpart.
■ 10. Section 435.4 is revised 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 10 CFR 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 FEMP (NIST 85–3273).
■ 11. Subpart B is added to part 435 to
read as follows:
Subpart B—Reduction in Scope 1
Fossil Fuel-Generated Energy
Consumption
Sec.
435.200 Scope 1 Fossil fuel-generated
energy consumption requirement.
435.201 Scope 1 Fossil fuel-generated
energy consumption determination.
435.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 435—
Maximum Allowable Scope 1 Fossil
Fuel-Generated Energy Consumption
§ 435.200 Scope 1 Fossil fuel-generated
energy consumption requirement.
(a) New EISA-Subject buildings. (1)
New Federal buildings that are low-rise
residential buildings, for which design
for construction began on or after [Date
one year after date of publication in the
Federal Register], 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). See GSA Annual
Prospectus Thresholds at www.gsa.gov/
real-estate/design-construction/gsaannual-prospectus-thresholds.
(b) Major renovations of EISA-Subject
buildings. (1) Major renovations to
Federal buildings that are low-rise
residential buildings, for which design
for construction began on or after [Date
one year after date of publication in the
Federal Register], 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) New Construction and
Major Renovations of all Scope 1 Fossil
Fuel-Using Systems in an EISA-Subject
Building.
(i) Design for construction began
during fiscal year 2024 through fiscal
year 2029. For new construction or
major renovations of all fossil fuel-using
systems in an EISA-subject building, for
which design for construction or
renovation, as applicable, began during
fiscal year 2024 through 2029, the Scope
1 fossil fuel-generated 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 A–1a to A–2a (if targets based on
Scope 1 emissions are used) or Tables
A–1b to A–2b (if targets based on kBtu
of fossil fuel usage are used) of
Appendix A of this subpart for the
associated building type, climate zone,
and fiscal year in which design for
construction began.
(A) Federal agencies may apply a shift
adjustment multiplier to the values in
Tables A–1a to A–2a or Tables A–1b to
A–2b based on the following baseline
hours of operation assumed in Tables
A–1a to A–2a or Tables A–1b to A–2b.
(B) To calculate the shift adjustment
multiplier, agencies shall estimate the
number of shifts for their new building
and multiply by the appropriate factor
shown below in Table 1 for their
building type. The Scope 1 fossil fuelgenerated energy consumption target for
the building would be the value in
either Tables A–1a to A–2a or Tables A–
1b to A–2b multiplied by the multiplier
calculated in the previous sentence.
TABLE VII.2—SHIFT ADJUSTMENT MULTIPLIER BY HOURS OF OPERATION AND BUILDING TYPE
Weekly hours of operation
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Building activity/type
50 or less
51 to 167
1
1
1
1
1
1
1
0.7
0.7
1
1
1
1
0.8
0.8
1
1
1
1
1
1
1
1
1
1.4
1.4
1
1
1
1
0.8
0.8
1
1
Admin/professional office .....................................................................................................................................
Bank/other financial .............................................................................................................................................
Government office ...............................................................................................................................................
Medical office (non-diagnostic) ............................................................................................................................
Mixed-use office ...................................................................................................................................................
Other office ..........................................................................................................................................................
Laboratory ............................................................................................................................................................
Distribution/shipping center .................................................................................................................................
Nonrefrigerated warehouse .................................................................................................................................
Convenience store ...............................................................................................................................................
Convenience store with gas ................................................................................................................................
Grocery store/food market ...................................................................................................................................
Other food sales ..................................................................................................................................................
Fire station/police station .....................................................................................................................................
Other public order and safety ..............................................................................................................................
Medical office (diagnostic) ...................................................................................................................................
Clinic/other outpatient health ...............................................................................................................................
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168
1.4
1.4
1.4
1.4
1.4
1.4
1.4
2.1
2.1
1.4
1.4
1.4
1.4
1.1
1.1
1.5
1.5
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TABLE VII.2—SHIFT ADJUSTMENT MULTIPLIER BY HOURS OF OPERATION AND BUILDING TYPE—Continued
Weekly hours of operation
Building activity/type
50 or less
51 to 167
1
0.9
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.8
0.4
0.4
0.4
1
1
1
1
1
1
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.7
1
1
1
1
1
1.7
1.5
1.5
1.5
1.5
1.5
1.3
1.3
1.3
1.3
1.3
1.1
1.1
1.1
1
1
1
1
1
1
1.2
1.2
1.2
1.5
1.5
1.5
1.5
1.5
1
1
1
1
lotter on DSK11XQN23PROD with PROPOSALS4
Refrigerated warehouse ......................................................................................................................................
Religious worship .................................................................................................................................................
Entertainment/culture ...........................................................................................................................................
Library ..................................................................................................................................................................
Recreation ............................................................................................................................................................
Social/meeting .....................................................................................................................................................
Other public assembly .........................................................................................................................................
College/university .................................................................................................................................................
Elementary/middle school ....................................................................................................................................
High school ..........................................................................................................................................................
Preschool/daycare ...............................................................................................................................................
Other classroom education ..................................................................................................................................
Fast food ..............................................................................................................................................................
Restaurant/cafeteria .............................................................................................................................................
Other food service ...............................................................................................................................................
Hospital/inpatient health ......................................................................................................................................
Nursing home/assisted living ...............................................................................................................................
Dormitory/fraternity/sorority ..................................................................................................................................
Hotel .....................................................................................................................................................................
Motel or inn ..........................................................................................................................................................
Other lodging .......................................................................................................................................................
Vehicle dealership/showroom ..............................................................................................................................
Retail store ...........................................................................................................................................................
Other retail ...........................................................................................................................................................
Post office/postal center ......................................................................................................................................
Repair shop .........................................................................................................................................................
Vehicle service/repair shop .................................................................................................................................
Vehicle storage/maintenance ..............................................................................................................................
Other service .......................................................................................................................................................
Strip shopping mall ..............................................................................................................................................
Enclosed mall ......................................................................................................................................................
Bar/Pub/Lounge ...................................................................................................................................................
Courthouse/Probation Office ...............................................................................................................................
(ii) Design for construction began
during or after fiscal year 2030. For new
construction and major renovations of
all Scope 1 fossil fuel-using systems in
an EISA-subject building, the Scope 1
fossil fuel-generated energy
consumption of the proposed building,
based on building design and calculated
according to § 435.201(a), must be zero.
(2) Major Renovations of a Scope 1
Fossil Fuel-Using Building System or
Scope 1 fossil fuel-using Component
within an EISA-Subject Building shall
follow the renovation requirements in
section 4.2.1.3 of the applicable
building baseline energy efficiency
standards listed in § 435.4 substituting
the term ‘‘design for construction’’ with
‘‘design for renovation’’ for the relevant
date, and shall replace all equipment
that is included in the renovation with
all electric or non-fossil fuel using
ENERGY STAR or FEMP designated
products as defined in § 436.42. For
component level renovations, Agencies
shall replace all equipment that is part
of the renovation with all electric or
non-fossil fuel using ENERGY STAR or
FEMP designated products as defined in
§ 436.42.
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(d) EISA-Subject 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 A–1a to A–2a or A–1b to A–2b
of appendix A of this subpart, or for
building types in these tables that
contain significant process loads,
Federal agencies must select the
applicable building type, climate zone,
and fiscal year in which design for
construction began from Tables A–1a to
A–2a or A–1b to A–2b of appendix A of
this subpart that most closely
corresponds to the proposed building
without the process load. The estimated
Scope 1 fossil fuel-generated energy
consumption of the process load must
be added to the maximum allowable
Scope 1 fossil fuel-generated energy
consumption of the applicable building
type for the appropriate fiscal year and
climate zone to calculate the maximum
allowable Scope 1 fossil fuel-generated
energy consumption for the building.
The same estimated Scope 1 fossil fuelgenerated energy consumption of the
process load that is added to the
maximum allowable Scope 1 fossil fuelgenerated energy consumption of the
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168
1
1.7
1.5
1.5
1.5
1.5
1.5
1.3
1.3
1.3
1.3
1.3
2.1
2.1
2.1
1
1
1
1
1
1
1.8
1.8
1.8
1.5
1.5
1.5
1.5
1.5
1
1
1.4
1.4
applicable building must also be used in
determining the Scope 1 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 A–
1a to A–2a or A–1b to A–2b of appendix
A of this subpart, the maximum
allowable Scope 1 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 A–1a to A–2a or A–1b to A–2b
of appendix A of this subpart, weighted
by floor area. Equation 1 shall be used
for mixed use buildings.
Equation 1: Scope 1 Fossil fuel
generated energy consumption for a
mixed-use building = the sum
across all building uses of (the
fraction of total floor building floor
area for building use i times the
allowable fossil fuel-generated
energy consumption for building
use i)
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Equation 2 may be rewritten as:
Scope 1 Fossil Fuel-Generated Energy
Consumption for a Mixed Use
Building = Sni=1
(Fraction of Total Building Floor Area
for Building Use i times Allowable
Scope 1 Fossil Fuel-Generated
Energy Consumption for Building
Use).
§ 435.201 Scope 1 Fossil fuel-generated
energy consumption determination.
(a) The Scope 1 fossil fuel-generated
energy consumption of a proposed
design is calculated as follows:
Equation: Scope 1 Fossil Fuel-Generated
Energy Consumption = Direct Fossil
Fuel Consumption of Proposed
Building/Floor Area
Where:
Direct Scope 1 Fossil Fuel-Generated Energy
Consumption of Proposed Building
equals the total site Scope 1 fossil fuelgenerated energy consumption of the
proposed building calculated in
accordance with the Simulated
Performance Alternative in Section 405
of the IECC 2021 (incorporated by
reference; see § 435.3), and measured in
thousands of British thermal units per
year (kBtu/yr), except that this term does
not include fossil fuel consumption for
emergency electricity generation.
Agencies must include all on-site fossil
fuel use or Scope 1 emissions associated
with non-emergency generation from
backup generators (such as those for
peak shaving or peak shifting). Any
energy generation or Scope 1 emissions
associated with biomass fuels are
excluded. Any emissions associated with
natural gas for alternatively fueled
vehicles (‘‘AFVs’’) (or any other
alternative fuel defined at 42 U.S.C.
13211 that is provided at a Federal
building) is excluded. Buildings with
manufacturing or industrial process
loads should be accounted for in the
analysis for the building’s fossil fuel
consumption and GHG emissions but are
not subject to the phase down targets.
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.
lotter on DSK11XQN23PROD with PROPOSALS4
§ 435.202 Petition for downward
adjustment.
(a) New Federal buildings and major
renovations of all Scope 1 fossil fuelusing systems in an EISA-subject
building. (1) Upon petition by a Federal
agency the Director of FEMP may adjust
the applicable maximum allowable
Scope 1 fossil fuel energy consumption
standard with respect to a specific
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building, upon written certification
from the head of the agency designing
the building, that the requested
adjustment is the largest feasible
reduction in Scope 1 fossil fuel energy
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
requirements to the maximum extent
practicable and that each fossil fuel
consuming product included in the
proposed building that is of a product
category covered by the ENERGY STAR
program or FEMP for designated
products is an ENERGY STAR product
or a product meeting the FEMP
designation criteria, as applicable;
(ii) A description of the systems,
technologies, and practices that were
evaluated and unable to meet the
required fossil fuel reduction including
a justification of why achieving the
Scope 1 fossil fuel-generated energy
consumption targets would be
technically impracticable: and
(iii) Any other information the agency
determines would help explain its
request;
(2) The head of the agency designing
the building, 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,
expected number of occupants and
occupant schedule, project type, project
cost, and functional needs, mission
critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1
fossil fuel energy consumption for the
building from paragraphs (c) or (d) of
this section;
(iii) The estimated Scope 1 fossil fuel
energy consumption of the proposed
building;
(iv) A description of the proposed
building’s energy-related features,
including but not limited to:
(A) HVAC system type and
configuration;
(B) HVAC equipment sizes and
efficiencies;
(C) Ventilation systems (including
outdoor air volume, controls technique,
heat recovery systems, and economizers,
if applicable);
(D) Service water heating system
configuration and equipment (including
solar hot water, wastewater heat
recovery, and controls for circulating
hot water systems, if applicable);
(E) Estimated industrial process loads;
and
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(F) Any other on-site fossil fuel
consuming equipment.
(3) Petitions for downward
adjustment should be submitted to ffpetition@ee.doe.gov, or to: U.S.
Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE–5F,
1000 Independence Ave. SW,
Washington, DC 20585–0121.
(4) The Director will make a best
effort to notify the requesting agency in
writing whether the petition for
downward adjustment to the numeric
reduction requirement is approved or
rejected, in 45 calendar days of
submittal, granted the petition is
complete. 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 of a Scope 1
fossil fuel-using building system or
Scope 1 fossil fuel-using component. (1)
Upon petition by a Federal agency, the
Director of FEMP may adjust the
applicable requirements for the Federal
agency to reduce Scope 1 on-site fossil
fuel-generated energy consumption
standard with respect to a specific
renovation, upon written certification
from the head of the agency designing
the renovation, that the requested
adjustment is the largest feasible
reduction in Scope 1 fossil fuel energy
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 renovation
incorporates commercially available
systems and/or components that
provide a level of energy efficiency that
is life-cycle cost effective as defined in
this part and reduces consumption of
Scope 1 fossil fuel energy consumption
to the maximum extent practicable and
that each fossil fuel consuming product
included in the proposed building that
is of a product category covered by the
ENERGY STAR program or FEMP for
designated products is an ENERGY
STAR product or a product meeting the
FEMP designation criteria, as
applicable.
(ii) A description of the systems,
technologies, and practices that were
evaluated and unable to meet the
required fossil fuel reduction including
a justification of why achieving the
Scope 1 fossil fuel-generated energy
consumption targets would be
technically impracticable: and
(iii) Any other information the agency
determines would help explain its
request.
(2) The head of the agency making the
design decisions for the building, must
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lotter on DSK11XQN23PROD with PROPOSALS4
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,
estimated number of occupants and
occupant schedule, project type, project
cost, and functional needs, mission
critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1
fossil fuel energy consumption for the
building from § 435.200(c) or (d);
(iii) The estimated Scope 1 fossil fuel
energy consumption of the building;
(iv) A description of system(s) or
component(s) that are being renovated,
including but not limited to:
(A) HVAC system or component type
and configuration;
(B) HVAC equipment sizes and
efficiencies;
(C) Ventilation systems or
components (including outdoor air
volume, controls technique, heat
recovery systems, and economizers, if
applicable);
(D) Service water heating system or
component configuration and
equipment (including solar hot water,
wastewater heat recovery, and controls
for circulating hot water systems, if
applicable);
(E) Estimated process loads; and
(F) Any other on-site fossil fuel
consuming equipment.
(3) Petitions for downward
adjustment should be submitted to ffpetition@ee.doe.gov, or to: U.S.
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Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE–5F,
1000 Independence Ave. SW,
Washington, DC 20585–0121.
(4) The Director will make a best
effort to notify the requesting agency in
writing whether the petition for
downward adjustment to the numeric
reduction requirement is approved or
rejected, in 45 calendar days of
submittal for major renovations of a
buildings system, and 20 calendar days
for major renovations of a component,
granted the petition is complete. If the
Director rejects the petition, the Director
will forward its reasons for rejection to
the petitioning agency.
(c) Exclusions. The General Services
Administration (GSA) may not submit
petitions under paragraphs (a) and (b) of
this section. Agencies that are tenants of
GSA buildings for which the agency, not
GSA, has significant design control may
submit petitions in accordance with this
section.
Appendix A to Subpart B of Part 435
Maximum Allowable Scope 1 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 2021 (incorporated by
reference; see § 435.3).
(b) For purpose of appendix A, the
following definitions apply:
Mobile 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
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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.
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 mobile homes.
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0.67
0.41
0.76
0.57
0.25
0.68
0.41
0.77
0.61
0.29
1A
2A
0.80
0.50
0.80
0.93
0.61
1B
0.73
0.45
0.78
0.74
0.42
3A
3B
3C
4A
4B
4C
5A
0.92
0.58
0.83
1.25
0.93
0.76
0.47
0.79
0.83
0.51
0.87
0.55
0.82
1.11
0.80
0.92
0.58
0.83
1.25
0.93
1.07
0.69
0.87
1.64
1.32
1.05
0.67
0.87
1.58
1.26
1.06
0.68
0.87
1.62
1.30
5B
1.23
0.79
0.92
2.06
1.74
Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
0.78
0.48
0.79
0.87
0.55
2B
1.19
0.76
0.90
1.95
1.63
5C
6B
1.36
0.88
0.95
2.40
2.08
6A
1.11
0.71
0.88
1.74
1.42
1.36
0.88
0.95
2.41
2.09
7
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12
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10
6
8
15
12
11
7
8
19
16
5B
Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
2B
11
7
8
18
15
5C
10
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1B
0.40
0.25
0.40
0.46
0.30
3A
3B
3C
4A
4B
4C
5A
0.38
0.24
0.39
0.41
0.25
0.44
0.27
0.41
0.56
0.40
0.46
0.29
0.42
0.63
0.47
0.54
0.34
0.44
0.82
0.66
0.52
0.33
0.43
0.79
0.63
0.53
0.34
0.44
0.81
0.65
0.62
0.40
0.46
1.03
0.87
5B
0.59
0.38
0.45
0.97
0.81
Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
0.46
0.29
0.42
0.62
0.46
2B
0.55
0.35
0.44
0.87
0.71
5C
6B
0.68
0.44
0.48
1.20
1.04
6A
0.68
0.44
0.47
1.20
1.04
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Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
2B
-
Mobile .....................................................................
Single-family detached ...........................................
Single-family attached ............................................
Multi-family (in 2–4-unit building) ............................
Multi-family (in 5+ unit building) ..............................
Building Activity/Type
-
.................
.................
.................
.................
.................
Climate zone:
-
Residential
Residential
Residential
Residential
Residential
Building category
[Source kBtu/yr-sqft]
5
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TABLE A–2b–FY2025–FY2029 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND
CLIMATE ZONE, RESIDENTIAL BUILDINGS
0.33
0.20
0.38
0.28
0.13
0B
-
Mobile .....................................................................
Single-family detached ...........................................
Single-family attached ............................................
Multi-family (in 2–4-unit building) ............................
Multi-family (in 5+ unit building) ..............................
Building Activity/Type
0A
-
.................
.................
.................
.................
.................
Climate zone:
-
Residential
Residential
Residential
Residential
Residential
Building category
[CO2e/yr-sqft]
TABLE A–2a—FY2025–FY2029 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND
CLIMATE ZONE, RESIDENTIAL BUILDINGS
6
4
7
5
2
0B
-
Mobile .....................................................................
Single-family detached ...........................................
Single-family attached ............................................
Multi-family (in 2–4-unit building) ............................
Multi-family (in 5+ unit building) ..............................
Building Activity/Type
0A
-
.................
.................
.................
.................
.................
Climate zone:
-
Residential
Residential
Residential
Residential
Residential
Building category
[Source kBtu/yr-sqft]
TABLE A–1b—FY2020–FY2024 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND
CLIMATE ZONE, RESIDENTIAL BUILDINGS
0.66
0.40
0.76
0.56
0.24
0B
-
Mobile .....................................................................
Single-family detached ...........................................
Single-family attached ............................................
Multi-family (in 2–4-unit building) ............................
Multi-family (in 5+ unit building) ..............................
Building activity/type
0A
-
.................
.................
.................
.................
.................
Climate zone:
-
Residential
Residential
Residential
Residential
Residential
Building category
[CO2e/yr-sqft]
TABLE A–1a—FY2020–FY2024 MAXIMUM ALLOWABLE FOSSIL FUEL-GENERATED ENERGY CONSUMPTION BY BUILDING CATEGORY, BUILDING TYPE AND
CLIMATE ZONE, RESIDENTIAL BUILDINGS
lotter on DSK11XQN23PROD with PROPOSALS4
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2.82
2.50
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Agencies
[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Proposed Rules]
[Pages 78382-78436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27098]
[[Page 78381]]
Vol. 87
Wednesday,
No. 244
December 21, 2022
Part IV
Department of Energy
-----------------------------------------------------------------------
10 CFR Parts 433 and 435
Clean Energy for New Federal Buildings and Major Renovations of Federal
Buildings; Proposed Rule
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 /
Proposed Rules
[[Page 78382]]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
10 CFR Parts 433 and 435
[EERE-2010-BT-STD-0031]
RIN 1904-AB96
Clean Energy 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.
-----------------------------------------------------------------------
SUMMARY: The Department of Energy (``DOE'') is publishing a
supplemental notice of proposed rulemaking (``SNOPR'') to establish
revised energy performance standards for the construction of new
Federal buildings, including commercial buildings, multi-family high-
rise residential buildings, and low-rise residential buildings per the
Energy Conservation and Production Act (``ECPA''), as amended by the
Energy Independence and Security Act (``EISA'') of 2007. This document
presents an updated proposal with a new focus that accounts for the
needs of Federal agencies and the goals of President Biden's
Administration and responds to comments received on prior notice of
proposed rulemaking (``NOPR'') and SNOPR documents. Consistent with the
requirements of ECPA and EISA, this document presents revised Federal
building energy performance standards that would require reductions in
Federal agencies' on-site use of fossil fuels (which include coal,
petroleum, natural gas, oil shales, bitumens, tar sands, and heavy
oils) consistent with the targets of ECPA and EISA and provides
processes by which agencies can petition DOE for the downward
adjustment of said targets for buildings.
DATES:
Meeting: DOE will hold a webinar on Thursday, January 5, 2023, from
1:00 p.m. to 4:00 p.m. See section VI, ``Public Participation,'' for
webinar registration information, participant instructions, and
information about the capabilities available to webinar participants.
Comments: DOE will accept comments, data, and information regarding
this SNOPR no later than February 21, 2023. Interested persons are
encouraged to submit comments using the Federal eRulemaking Portal at
www.regulations.gov, under docket number EERE-2010-BT-STD-0031. Follow
the instructions for submitting comments. EERE-2010-BT-STD-0031.
Alternatively, interested persons may submit comments, identified by
docket number EERE-2010-BT-STD-0031, by any of the following methods:
(1) Email: [email protected]. Include the
docket number EERE-2010-BT-STD-0031 in the subject line of the message.
(2) Postal Mail: Mr. Jeremy Williams, U.S. Department of Energy,
Building Technologies Program, Mailstop EE-5B, 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. If possible, please submit all items on a
compact disc (``CD''), in which case it is not necessary to include
printed copies.
(3) Hand Delivery/Courier: Mr. Jeremy Williams, 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. If possible, please submit all items on a CD, in which
case it is not necessary to include printed copies.
No telefacsimiles (``faxes'') will be accepted. For detailed
instructions on submitting comments and additional information on this
process, see section VI of this document.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Williams, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies Office, EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. Email:
[email protected].
Mr. Matthew Ring, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: (202) 586-2555. Email: [email protected].
For further information on how to submit a comment, review other
public comments and the docket, or participate in the public meeting,
contact the Building Energy Codes Program staff at
[email protected].
SUPPLEMENTARY INFORMATION:
DOE proposes to incorporate by reference the following industry
standards:
ANSI/ASHRAE/IES 90.1-2019, Energy Standard for Buildings Except
Low-Rise Residential Buildings, I-P Edition, copyright 2019 (``ASHRAE
90.1-2019''), into part 433.
ASHRAE 90.1-2019 is available from the American Society of Heating
Refrigerating and Air-Conditioning Engineers, Inc., 180 Technology
Parkway NW, Peachtree Corners, GA 30092; (404) 636-8400;
www.ashrae.org.
ICC 2021, Redline Version, Copyright 2021, (``IECC 2021'') into
part 435.
IECC 2021 is available from the International Energy Conservation
Code (IECC), 4051 West Flossmoor Road, Country Club Hills, IL 60478, 1-
888-422-7233, or go to https://www.iccsafe.org/.
See section V.M of this document for a further discussion of these
standards.
Table of Contents
I. Introduction
A. Authority
B. Background
C. Coverage of the Regulation
II. Discussion of Proposed Standards
A. Performance Standards for Fossil Fuel-Generated Energy
Consumption
B. Compliance With Performance Standards for New Construction
and Major Renovations of a Whole Building
C. Compliance With Performance Standards for Major Renovations
Within a Building
D. Development of Fossil Fuel-Generated Energy Consumption
Target
E. Petitions for Downward Adjustment
F. Terminology To Be Defined in This Rulemaking
III. Additional Discussion Including Related Comments
A. 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 Relevant Comments
B. Establishing and Using the Baseline
1. CBECS and RECS Baselines
2. Climate Adjustment
3. Plug and Process Loads
4. Differentiating Between Fossil Fuels
5. Regional Fossil Fuel Factors
6. Marginal Source of Electricity
7. Residential Common Areas
8. Major Renovations
9. Other Relevant Comments
C. 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. Other Relevant Comments
D. Petitions for Downward Adjustment
1. Technical Impracticability 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
[[Page 78383]]
6. Make Information Publicly Available
7. Narrow the Use of Petitions
8. GSA Tenant Agencies
9. Other Relevant Comments
E. Impacts of the Rule
1. Cost Impacts
2. Other Impacts
F. Guidance and Other Topics
IV. Methodology, Analytical Results, and Conclusion
A. Cost-Effectiveness
B. Emissions Analysis
1. Air Quality Regulations Incorporated in DOE's Analysis
C. Monetization of Emissions Changes
1. Monetization of Greenhouse Gas Emissions
a. Social Cost of Carbon
b. Social Cost of Methane and Nitrous Oxide
2. Monetization of Other Emissions Impacts
D. Conclusion
E. Reference Resources
V. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act
D. Review Under the National Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government
Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General Government
Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Information Quality
M. Description of Materials Incorporated by Reference
VI. Public Participation
A. Attendance at the Public Meeting
B. Procedure for Submitting Prepared General Statements for
Distribution
C. Conduct of the Public Meeting
D. Submission of Comments
VII. Approval of the Office of the Secretary
I. Introduction
The following section briefly discusses the statutory authority
underlying this proposed rule, as well as some of the relevant
historical background related to the establishment of a fossil fuel-
generated energy consumption reduction rule for Federal buildings.
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 the Department of Energy (``DOE'') to
establish regulations that require fossil fuel-generated energy
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))
---------------------------------------------------------------------------
\1\ Under 40 U.S.C. 3301(a)(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 Native American and Native Alaskan
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.
---------------------------------------------------------------------------
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 (``FY'') 2003
(as measured by Commercial Buildings Energy Consumption Survey
(``CBECS'') or Residential Energy Consumption Survey (``RECS'') data
from the DOE's Energy Information Administration (``EIA'') by 55
percent beginning in FY2010, 65 percent beginning in FY2015, 80 percent
beginning in FY2020, 90 percent beginning in FY2025, and 100 percent
beginning in FY2030, also shown in the Table I.1. (42 U.S.C.
6834(a)(3)(D)(i)(I))
Table I.1--Building Percentage Reduction Requirements by Fiscal Year
------------------------------------------------------------------------
Percentage
Fiscal year reduction
------------------------------------------------------------------------
2010...................................................... 55
2015...................................................... 65
2020...................................................... 80
2025...................................................... 90
2030...................................................... 100
------------------------------------------------------------------------
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 the General
Services Administration (``GSA''). (Id.)
The term ``fossil fuel-generated energy consumption'' is not
defined in section 433 of EISA 2007. In this SNOPR, DOE is proposing to
apply the term ``fossil fuel-generated energy consumption,'' for
purposes of meeting the reduction targets in EISA section 433, as only
energy consumption from on-site fossil fuel used by equipment and
systems designed to support building operations (also referred to as
Scope 1 uses). In this SNOPR, DOE proposes that these initial standards
would not cover certain process loads, manufacturing/industrial
activities, unique research activities or back-up emergency generators
nor would the standards cover electricity or other purchased utility
consumption supplied from the grid and generated using fossil fuels
off-site. However, DOE may re-examine the scope of this term and
coverage in future updates of these standards.
B. Background
This SNOPR proposes to amend certain portions of 10 CFR parts 433
and 435, the regulations governing energy efficiency in Federal
buildings. DOE previously published a notice of proposed rulemaking
(``NOPR'') in the Federal Register on October 15, 2010, which outlined
a proposal to implement section 433 of EISA. 75 FR 63404. A public
meeting on the NOPR was held on November 12, 2010, and public
[[Page 78384]]
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 identified
additional areas for clarification and consideration that would benefit
from further public comment. DOE issued a supplemental notice of
proposed rulemaking (2014 SNOPR) on October 14, 2014. 79 FR 61694.
Comments were accepted through December 15, 2014.\4\ To ensure
alignment with the decarbonization goals of the Biden Administration,
DOE is revising its proposal and issuing a second SNOPR. This revised
SNOPR will take into consideration previous relevant comments from the
2014 SNOPR as well as considerations of Administration objectives to
reduce emissions across federal operations, as appropriate.
---------------------------------------------------------------------------
\3\ Complete contents of the docket folder may be found at
www.regulations.gov/#!docketDetail;D=EERE-2010-BT-STD-0031.
\4\ Id.
---------------------------------------------------------------------------
In this second SNOPR, DOE makes a number of changes from the 2014
SNOPR that would 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 of this document. This second SNOPR:
Converts the proposed rule from a kBtu per ft\2\
accounting of total fossil fuel use (including both on-site fossil fuel
use and the embedded fossil fuels in on-site electricity use) to use
kBtu per ft\2\ of on-site fossil fuel usage or Scope 1 GHG emissions in
CO2e (``Carbon Dioxide Equivalent Gases'') per ft\2\.
Implements a shift multiplier for Federal buildings that
operate on extended schedules compared to the private sector buildings
sampled in CBECS. This multiplier will apply solely to Federal
commercial buildings regulated in 10 CFR part 433 as residential
buildings of all types in both the private sector and Federal sector
are assumed to be operated 24 hours a day.
Revises the calculation of fossil fuel usage for the
proposed design to make it consistent with how DOE tracks fossil fuel
usage and greenhouse gas emissions in reporting related to EISA 2007
section 432.
Clarifies applicability of the rule to EISA-subject major
renovations in three categories--renovations of all Scope 1 fossil
fuel-using systems, Scope 1 fossil fuel-using system level renovations,
and Scope 1 fossil fuel-using component level renovations.
Clarifies applicability of the rule to leased facilities,
noting that the only leases subject to this proposed rule are new
leases for buildings built specifically for the purpose of being leased
to the Federal government.
Clarifies an approach to determine required fossil fuel-
generated energy consumption levels for EISA-subject major renovations
that are limited to system or component level retrofits.
Clarifies 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,
including, for example, process loads associated with the charging of
electric vehicles and the fueling of natural gas fueled vehicles.
Clarifies that renewable fossil fuels such as biomethane
and biopropane qualify as exemptions from the calculation of fossil
fuel usage.
Clarifies the definition of Scope 1 fossil fuel-generated
energy consumption as the metric being used for this rule (only
including consumption for on-site fossil fuel use, not embedded fossil
fuels in on-site electricity use).
Clarifies the definition of technical impracticability for
purposes of the petition process.
Modifies definitions of major renovations to reflect focus
on Scope 1 fossil fuel-generated energy consumption and fossil fuel-
using systems as opposed to the whole building fossil-fuel generated
energy consumption and all building systems.
Over the past few years, DOE has addressed energy efficiency
requirements for Federal buildings as mandated in ECPA. DOE published a
final rule updating Federal building energy efficiency standards for
commercial or multi-family high-rise residential buildings to ASHRAE
Standard 90.1-2019 on April 7, 2022. 87 FR 20293. DOE also published a
final rule updating Federal building energy efficiency standards for
low-rise residential buildings to the 2021 International Energy
Conservation Code (``IECC'') on April 5, 2022. 87 FR 19613. Prior to
that, DOE published a final rule updating the Federal building energy
efficiency standards for low-rise residential buildings to the 2015
IECC on January 10, 2017 (82 FR 2857), and a final rule updating
Federal building energy efficiency standards for commercial and multi-
family high-rise residential buildings to ASHRAE Standard 90.1-2013 on
November 6, 2015. 80 FR 65749. DOE also published a final rule
regarding green building certification systems for Federal buildings
that applied to Federal commercial or multi-family high-rise
residential buildings and low-rise residential buildings on October 14,
2014. 79 FR 61563.
C. Coverage of the Regulation
This SNOPR applies to a defined subset of new Federal buildings and
major renovations to Federal buildings, as specified in section 433 of
EISA 2007. (See 42 U.S.C. 6834(a)(3)(D)(i)) 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)).
The subset of Federal buildings for which this rule will apply fall
under two categories and will be referred collectively to as ``EISA-
subject buildings.'' The first qualifying category of EISA-subject
buildings includes any new Federal buildings or major renovations to
Federal buildings that are public buildings, as defined in 40 U.S.C.
3301,\5\ for which transmittal of a prospectus to Congress is required
under 40 U.S.C. 3307. Under 40 U.S.C. 3307(a)(1), a transmittal of a
prospectus to Congress is required if a total expenditure in excess of
$1,500,000 is required to construct, alter, or acquire
[[Page 78385]]
the public building.\6\ Under 40 U.S.C. 3307(h), the GSA Administrator
may adjust this value annually to account for construction cost
increases. GSA's annual prospectus threshold for FY 2022 is
$3,375,000.\7\ GSA also provides a separate dollar threshold for
alterations in leased public buildings for which a prospectus is
required. In FY 2022, the cost threshold for alterations in leased
buildings for public purposes is $1,687,500.
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\5\ Under 40 U.S.C. 3301(a)(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 Native American and native Alaskan
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.
\6\ 40 U.S.C. 3307(a) also contains a second prospectus
threshold in 40 U.S.C. 3307(a)(3) which applies to alterations of
buildings which are under lease by the Federal Government for use
for a public purpose if the cost of the alteration will exceed
$750,000. This threshold is one-half of the threshold for all other
new construction or alterations of existing buildings.
\7\ See GSA Annual Prospectus Thresholds at www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds.
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The second qualifying category of EISA-subject buildings covers any
new Federal buildings or major renovations to Federal buildings that
are not public buildings and for which the construction cost or major
renovation cost is at least $2,500,000 (in 2007 dollars, adjusted for
inflation). Agencies can calculate what that adjusted cost threshold
would be currently by visiting (https://data.bls.gov/cgi-bin/cpicalc.pl). As noted previously, GSA also provides a separate dollar
threshold for alterations in leased public buildings ($1,687,500 in
FY2022). DOE will use both of these thresholds (i.e., the $2,500,000 in
FY 2007 dollars, and the $1,687,500 in FY2022, each adjusted for
inflation) for this second category of EISA-subject buildings (i.e.,
buildings for which a prospectus is not required). With respect to the
threshold for alterations in leased buildings, while section 433 of
EISA prescribes a $2,500,000 (in 2007 dollars) threshold for major
renovations for which a prospectus is not required, DOE proposes to use
the lower GSA prospectus threshold for alterations in leased buildings
for this second category of EISA-subject buildings because it is
consistent with: (1) current agency practice for such buildings, and
(2) the scheme Congress established in EISA section 433 where the
prospectus dollar thresholds (e.g., $2,500,000 in 2007 dollars) are
nonetheless applied to buildings and renovations for which a prospectus
is not required.
For example, a building in the first category would include a
federal office building for which design for construction began in FY
2022 and with construction or renovation costs that are more than
$3,375,000. A building in the second category would include a
residential building (which is excluded from the definition of ``public
building'' under 40 U.S.C. 3301) with construction or renovation costs
of at least $3,375,000 in FY22 ($2,500,000 (in 2007 dollars, adjusted
for inflation)). DOE expects that the majority of low-rise residential
buildings that meet the cost threshold will be low-rise multi-family
buildings or low-rise dormitories as Federal low-rise single-family
homes are not likely to meet the cost threshold.
When identifying major renovation projects within an EISA-subject
building which could be subject to this regulation because of the cost
thresholds, agencies should consider any energy conservation measures
(``ECMs'') which have been identified in that building and reported to
DOE, as per 42 U.S.C. 8253(f)(3)(A). If identified ECMs include
projects which would impact on-site fossil fuel usage, the agency
should consider the total of those project costs bundled together when
implementing those ECMs to determine whether the total cost triggers
EISA compliance. ECMs that impact on-site fossil fuel usage may
include, for example: adding new fossil fuel-using heating, hot water,
or cooking systems to an existing building; direct replacement of
existing fossil fuel-using heating, hot water, or cooking systems in an
existing building; and modification or replacement of any building
systems (including systems such as lighting or building envelope
systems that do not use fossil fuel directly) that lead to an increase
or decrease in fossil fuel use). Such an approach would address a
situation where individual pieces of on-site fossil fuel consuming
technology are replaced with similar technologies in a piecemeal
approach instead of a more strategic and comprehensive way that
furthers the goals of EISA along with the Administration's priorities
to reduce Federal agencies' reliance on fossil fuels and reduce on-site
Federal building emissions.
II. Discussion of Proposed Standards
A. Performance Standards for Fossil Fuel-Generated Energy Consumption
To provide flexibility while adhering to the statutory origins of
the rule, DOE is proposing to keep the performance standards for fossil
fuel-generated energy consumption metric from the 2014 SNOPR (expressed
in kBtu per ft\2\ of building gross area) while also providing an
equivalent conversion of the energy metric measured in greenhouse gas
(GHG) metrics. As mentioned earlier, DOE has chosen to focus on on-site
fossil fuels or Scope 1 emissions, at least initially. This is a shift
from the proposed scope of the 2014 SNOPR, which also included
consideration of off-site fossil fuel consumption. DOE determined to
focus this rule on onsite fossil fuel use in light of recent Federal
building initiatives and efforts to address fossil fuel use and
emissions generated off-site (e.g., Executive Order 14057). DOE may
address emissions generated off-site (i.e., Scope 2 emissions) at a
later time.
This SNOPR provides agencies with two separate but equivalent sets
of fossil fuel generated energy consumption targets--(1) fossil fuel-
generated energy consumption based on a summation of on-site fossil
fuel usage expressed in kBtu per ft\2\ of building gross area and (2) a
new carbon dioxide equivalent (``CO2e'') per ft\2\ metric
based on the emissions associated with the on-site fossil fuel-
generated energy consumption. Both metrics are based directly on the
reported usage of fossil fuels in CBECS and RECS, with the fossil fuel-
generated energy consumption metric simply adding up the fossil fuel
usage and converting it to kBtu and the CO2e metric
converting the amount of each fuel used to CO2e.
Agencies will be allowed to use either metric for their design
targets. DOE opted to include the GHG metric, which will measure Scope
1 emissions, because agencies are already required to track and report
their GHG emissions annually utilizing the ``Federal Greenhouse Gas
Accounting and Reporting Guidance'' (Council on Environmental Quality
(``CEQ''), January 17, 2016). DOE is proposing to align the
quantifications and terminologies with those established in the Federal
Greenhouse Gas Accounting and Reporting Guidance, which categorizes
Scope 1 emissions into ``Generation of electricity, heat, cooling, or
steam'', ``Mobile sources'', ``Fugitive emissions'', and ``Process
emissions''. As mentioned earlier, at this time, DOE is proposing that
the scope of this rule to be focused only on the on-site fossil fuel
associated with the ``Generation of electricity, heat, cooling, or
steam''.
DOE is proposing two exceptions to the scope of coverage of the
standards in this SNOPR which differ from how emissions are instructed
to be tracked by the Federal Greenhouse Gas Accounting and Reporting
Guidance. First, DOE is proposing to exclude on-site fossil fuel energy
generation or Scope 1 emissions associated with emergency backup
generation of electricity from the scope of this rule. The Federal
Greenhouse Gas Accounting and Reporting Guidance for the category of
Scope 1 emissions from ``generation of electricity, heat, cooling,
[[Page 78386]]
or steam'' requires tracking and reporting for emergency generators.
However, DOE intends for agencies to include all on-site fossil fuel
use or Scope 1 emissions associated with non-emergency generation from
backup generators (such as those for peak shaving or peak shifting) in
the scope of this rule. DOE may revisit the issue of whether to include
these on-site fossil fuel uses in the future. DOE also notes that if
agencies use their backup generators for both purposes, they will be
required to calculate what fraction of their backup generator Scope 1
emissions is associated with emergency use and what fraction is
associated with non-emergency use.
Second, DOE proposes to exclude any energy generation or Scope 1
emissions associated with biomass fuels from this rule, as they are not
fossil fuel based and thus fall outside the coverage of this rule. DOE
acknowledges that CEQ's guidance is different on biomass but is
complimentary to provide additional coverage outside the fossil fuel
scope mandated by statute for this proposed rulemaking. The Federal
Greenhouse Gas Accounting and Reporting Guidance, unlike this rule, is
not limited to fossil fuel-based emissions, and states that Scope 1
emissions include ``emissions from biomass combusted for production of
electricity, heat, cooling, or steam''. However, because EISA 2007
directed DOE to establish regulations that require fossil fuel-
generated energy consumption reductions, and biomass is not a fossil
fuel, DOE has intentionally left biomass out of the CBECS and RECS
targets developed for this rule. Agencies therefore would not include
any energy consumption or Scope 1 emissions from biomass in their
calculations.
Also, at this time DOE is focusing the scope of the SNOPR to
regulate on-site fossil fuel use or Scope 1 on-site emission from
stationary combustion sources. As such, any emissions associated with
natural gas for alternatively fueled vehicles (``AFVs'') (or any other
alternative fuel defined at 42 U.S.C. 13211 that is provided at a
Federal building) would be excluded from coverage of these standards.
In addition, for buildings with manufacturing or industrial process
loads, DOE notes that the CBECS and RECS data that provide the targets
for this rule do not contain manufacturing or industrial process loads.
Therefore, DOE proposes to exclude these loads from coverage as well.
For buildings with such process loads, the process loads will need to
be accounted for in the analysis of the building's fossil fuel
consumption and GHG emissions but would not be subject to the
percentage reductions in fossil fuel-generated energy consumption
(Scope 1 GHG emissions) required for the building related loads.
B. Compliance With Performance Standards for New Construction and Major
Renovations of a Whole Building
DOE has developed quantitative requirements to determine compliance
with the fossil fuel performance standards for new construction and
major renovations (i.e., major renovation of all Scope 1 fossil fuel-
using systems in a building) of EISA-subject buildings. Consistent with
the changes proposed in this SNOPR, DOE is proposing to define the term
``Major renovation of all Scope 1 fossil fuel-using systems in a
building,'' which DOE proposes to define as a renovation of all Scope 1
fossil fuel-using systems on an existing building that is so extensive
that it replaces all scope 1 fossil fuel-using systems in the building.
This term includes, but is not limited to, comprehensive replacement or
restoration of most or all major systems, interior work (such as
ceilings, partitions, doors, floor finishes, etc.), or building
elements and features. DOE also refers to such major renovations as
``whole building'' renovations throughout this preamble.
The proposed quantitative requirements would require agencies to
calculate the on-site fossil fuel-generated energy consumption in kBtu
of fossil fuels or the Scope 1 GHG emissions in CO2e of
their proposed building design and compare that estimate to the
allowable fiscal year percentage reduction target found in the target
tables in appendix A. Per statute (42 U.S.C. 6834), DOE has provided
three compliance years in this SNOPR, those EISA-subject buildings for
which the design for construction or major renovation begins in the
FY2024, FY2025 to FY2029, and for those which the design for
construction or major renovation begins during or after FY2030.
Fundamentally, the calculation would require agencies to determine
the allowable target (in either kBtu of on-site fossil fuels or Scope 1
greenhouse gas (``GHG'') emissions attributed to the generation of
electricity, heat, cooling, or steam) for stationary combustion sources
as per ``Federal Greenhouse Gas Accounting and Reporting Guidance''
(Council on Environmental Quality (``CEQ''), January 17, 2016). The
kBtu values or the metric tons of CO2e from the Scope 1
emissions can then be divided by the floor area of the building and
converted to per square foot (metric tons of CO2e per square
foot) value that can be compared with the target values in appendix A.
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 EISA-subject buildings for which design for construction or
whole building renovation begins in the FY2024 to FY2029, tables of the
proposed maximum allowable on-site fossil fuel-generated energy
consumption (expressed in both kBtu per ft\2\ and Scope 1 GHG emissions
in CO2e per ft\2\) by building type and climate zone are
provided. The proposed values in the tables come from DOE's 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 kBtu and Scope 1 GHG emissions in
CO2e. As noted previously, DOE is proposing to define the
term ``Major renovation of all Scope 1 fossil fuel-using systems in a
building'' as a major renovation of all scope 1 fossil fuel-using
systems in a building that is so extensive that it replaces all scope 1
fossil fuel-using systems in the building. This term includes, but is
not limited to, comprehensive replacement or restoration of most or all
major systems, interior work (such as ceilings, partitions, doors,
floor finishes, etc.), or building elements and features. DOE also uses
the term ``whole building renovation'' in reference to these types of
renovations throughout this preamble.
For EISA-subject buildings for which design for construction or
whole building renovation begins in fiscal year 2030 or beyond, the
fossil fuel-generated energy consumption of the building must be zero
for all building types and climate zones, based on the calculation
established in the regulations.
C. Compliance With Performance Standards for Major Renovations Within a
Building
To determine compliance with the fossil fuel performance standards
for major renovations of systems or components within EISA-subject
buildings, DOE has developed streamlined proposed prescriptive
requirements. The proposed prescriptive requirements in this case would
be that the systems within the building undergoing major renovation
would be brought up to the performance requirements of the individual
sections of ASHRAE 90.1-2019 (chapters 5-10).
[[Page 78387]]
DOE is not proposing fiscal year timeframes for these requirements to
apply, but rather, agencies would begin implementing them upon
effective date of the rule. For major renovations in EISA-subject
buildings which meet the project cost threshold and coverage
requirements that are less than whole building renovations (i.e.,
projects within the existing building comprising of retrofits to a
single system or component such as a HVAC system or a chiller),
agencies would be required to follow the following prescriptive
requirements.
A major renovation within a building is defined as a major
renovation of a scope 1 fossil fuel-using building system or scope 1
fossil fuel-using component that provide significant opportunities for
energy efficiency or reduction in fossil fuel-related energy
consumption. This includes, but is not limited to, replacement of the
HVAC system, hot water system, or cooking system, or other fossil fuel-
using systems or components of the building that have a major impact on
fossil fuel usage. For component level renovations, meaning just a
product or piece of equipment, agencies would be required to utilize
electric or non-fossil fuel using Federal Energy Management Program
(``FEMP'') designated or ENERGY STAR equipment, which follow existing
Federal requirements for equipment efficiency (found in 10 CFR part
436, subpart C, ``Agency Procurement of Energy Efficient Products'').
For system level renovations, agencies would be required to utilize
electric or non-fossil fuel using FEMP designated or ENERGY STAR
equipment, in alignment with 10 CFR part 436, subpart C and would also
be required to meet the system level requirements for the systems being
renovated in the model energy codes used to establish baseline energy
efficiency standards for Federal buildings (i.e., the current ASHRAE
Standard 90.1 for Federal commercial and high-rise multi-family
buildings covered under 10 CFR part 433 or the current IECC for Federal
low-rise buildings covered under 10 CFR part 435.)
While this SNOPR would only cover systems and components that
utilize on-site fossil fuels, agencies should ensure that projects that
could have secondary impacts on fossil fuel using equipment, such as
lighting or window replacement projects are considered. DOE encourages
agencies to consider whole building optimization for any type of major
renovation project to ensure no adverse impacts to on-site fossil fuel
use. DOE also encourages on-site renewables such as solar and storage
as good practice. DOE is not including on-site solar as a means to
offset on-site fossil fuel consumption because it will not reduce the
overall on-site contribution even though it is a means to reduce
emissions from the electricity use of Federal building. DOE requests
that agencies provide comments on how to ensure major renovations which
do not directly replace on-site fossil fuel using equipment could be
incorporated in this rule (e.g., lighting replacement projects that
indirectly increase onsite fossil fuel usage through decreased internal
gains and higher subsequent heating loads).
D. Development of Fossil Fuel-Generated Energy Consumption Target
To develop the target values in appendix A, DOE utilized CBECS and
RECS data to determine the on-site fossil fuel usage by fossil fuel
type for each building in CBECS or RECS and then applied two
transformations to that data.
The CBECS and RECS data was parsed into the 19 climate zones used
in the current Federal baseline standards for commercial and multi-
family high-rise residential buildings, which rely on ASHRAE Standard
90.1-2019. The same 19 climate zones are used in the current Federal
baseline standards for low-rise residential buildings, which rely on
the 2021 IECC.
The first transformation DOE performed was converting the fossil
fuel consumption data collected and reported in CBECS and RECS by
building and by fossil fuel into kBtu, dividing by the building area,
applying the weighting factors associated with the building, and
assigning each building to one of the building type/climate zone bins.
The resulting target is expressed in terms of allowable kBtu per square
foot by building type and climate zone.
The second transformation was taking the same fossil fuel
consumption data reported in CBECS and RECS for each building,
multiplying the fossil fuel usage for each fuel type by the applicable
GHG coefficient from the CEQ guidance for each fuel type, dividing by
the building area, applying the weighting factors associated with the
building, and assigning each building to one of the building type/
climate zone bins. The resulting target is expressed in terms of
allowable CO2e (in metric tons of CO2e) per
square foot by building type and climate zone. The resulting targets
are shown in appendix A to subpart B of parts 433 and 435 in Table A-1a
and Table A-1b.
E. Petitions for Downward Adjustment
Under section 433 of EISA 2007, agencies other than GSA may
petition DOE for an adjustment to the fossil fuel-generated energy
consumption 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. The 2014 SNOPR proposed allowing GSA
tenant agencies with significant control over building design to
petition DOE, and that proposal is carried forward into this second
SNOPR. This SNOPR proposes a list of what information would be required
in a petition for a downward adjustment for a new building and for
major renovations that are whole building renovations. This includes a
description of the building and associated components and equipment, an
explanation of why compliance with the requirements is technically
impracticable considering 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, the
largest feasible reduction in fossil fuel-generated energy consumption
that can reasonably be achieved, and a description of measures that
were evaluated but rejected. As proposed, the Director of FEMP will
review the petition and make a best effort to return the complete
petition in 45 calendar days of submittal (see 42 U.S.C.
8253(i)(3)(B)(iv)); incomplete petitions will not be subject to this
timeframe and may result in delays.
Additionally, this rulemaking proposes a separate downward
adjustment process for major renovations that are system or component
level retrofits. Upon application, a major renovation that is limited
to a component level retrofit will 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 using ENERGY STAR or FEMP designated products.
Upon application, a major renovation that is limited to a single system
or multiple systems will receive a downward adjustment equal to the
energy efficiency level that would be achieved through the use of the
same ENERGY STAR or FEMP designated products as required for component
renovations and through use of the system level requirements for
renovations found in the baseline energy efficiency standards in 10 CFR
[[Page 78388]]
part 433 (ASHRAE Standard 90.1-2019) or 10 CFR part 435 (the 2021
IECC). If the petition only contains component level retrofits for
adjustment consideration, the Director of FEMP will review the petition
and make a best effort to return the complete petition within 20
calendar days of submittal (see 42 U.S.C. 8253(i)(3)(B)(iv));
incomplete petitions will not be subject to this timeframe and may
result in delays. DOE is also considering a separate petition process
for Department of Defense projects that serve critical national
security functions. Under this separate process, the head of the agency
designing the building (or his or her designee) must certify that
meeting the Scope 1 fossil fuel-based energy consumption targets would
be technically impracticable because the building, system, or component
serves a critical national security function and providing basic
facility or project design information may divulge sensitive national
security information. The petition must be accompanied by a statement
that the agency has reduced the fossil fuel-based energy consumption of
the building, system or component and complied with the other
requirements of this part to the maximum extent practicable. DOE
believes this separate process would be protective of critical national
security projects and information, while also ensuring that DOE meets
its petition obligations under 42 U.S.C. 6834. However, DOE recognizes
that the term ``critical national security function'' is potentially
ambiguous. DOE also recognizes that agencies may need flexibility in
defining what buildings or projects serve critical national security
functions, and that a pending petition may delay projects that serve
critical national security functions.
DOE requests comment on (i) a separate petition process for
buildings and projects serving critical national security functions,
(ii) if and how DOE should define ``critical national security
functions'', (iii) whether such buildings or projects (or some of them)
should be exempt from the scope of the proposed rule, and (iv) how
agencies should use their own discretion in determining what buildings
or projects serve critical national security functions.
F. Terminology To Be Defined in This Rulemaking
This SNOPR adds definitions for ``construction cost,'' ``design for
renovation,'' ``fiscal year (``FY''),'' ``major renovation,'' ``major
renovation cost,'' ``major renovation of a whole building,'' ``major
renovation of a building system or component,'' ``multi-family high-
rise residential building,'' and revises the definition for ``proposed
building.'' For the purposes of establishing the targets, this proposed
rulemaking establishes the definitions of 16 categories of commercial
buildings and 5 categories of residential dwelling units which cover
all residential buildings, including low-rise (single-family and multi-
family), mid-rise apartment buildings, and high-rise apartment
building.
The 16 categories of commercial buildings defined 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 (not applicable), retail (other than mall), service,
and warehouse and storage. Many of these commercial building categories
are further divided into building types, providing a total of 48
commercial building types. These building categories and building types
represent the high-level Principle Building Activity (``PBA'') and low-
level Principle Building Activity Plus categories in the 2003 CBECS.
The five categories of residential buildings are divided into five
building/activity types: mobile, multi-family in 2-4-unit buildings,
multi-family in 5 or more unit buildings, single-family attached, and
single-family detached. These building types represent the housing unit
types in the 2005 RECS. Residential buildings that fall under 10 CFR
part 435 and multi-family mid-rise and high-rise buildings that fall
under 10 CFR part 433 will use these same categories. For the purposes
of analysis of the rule, DOE assumes that most multi-family high-rise
residential buildings will fall into the ``multi-family in 5 or more
unit buildings'' based on the most typical buildings representative of
the Federal building.
Federal agencies would be required to select from these 53
categories to identify the fossil fuel-generated energy consumption
target (expressed in both kBtu per ft\2\ and Scope 1 GHG emissions in
CO2e per ft\2\), for their new construction or building
undergoing a major renovation. DOE notes that the building types
available from CBECS and RECS do not correspond directly to the
building types used in the Federal Real Property Profile (``FRPP'').
Thus, agencies may need to area-weight the floor space these CBECS and
RECS targets for Federal buildings that do not correspond directly to
the CBECS or RECS building types. For example, a DOD Post Exchange
building might have aspects of Food Sales, Food Service, and
Mercantile, necessitating the development of an area-weighted target.
Similarly, a DOD barracks building might include aspects of Lodging or
Residential, Education, and Warehouse, again necessitating the use of
an area-weighted mapping.
III. Additional Discussion Including Related Comments
DOE received 179 comments on the 2014 SNOPR from 27 different
entities.\8\ The comments were analyzed and categorized into the same
six major categories used to categorize comments on the NOPR: Scope and
Applicability of the Proposed Rule, Baseline, Methodology, Impacts,
Petition for Downward Adjustment, Impacts of the Rule, and Guidance.
Each major category of comment was broken down into multiple
subcategories for discussion purposes.
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\8\ Comments received on the proposed rule are designated by the
commenter or commenting organization, the DOE assigned number of the
individual comment, and the page number of the commenters or
commenting organizations submission.
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DOE believes that many of the prior comments may no longer be
appropriate or applicable given recent Federal building initiatives
(e.g., Executive Order 14057) and the significant change in the scope
of the rule in this second SNOPR. Therefore, in this SNOPR, DOE only
discusses comments relevant to DOE's current proposal, and only in a
manner applicable to this proposal. DOE encourages those agencies and
other stakeholders who commented on the 2014 SNOPR to read this
proposed rule and provide further comment on this updated proposal.
A. Scope and Applicability of the Proposed Rule
This section discusses the scope and applicability of the proposed
rule and the comments received on the 2014 SNOPR regarding that topic.
The subcategories of comments are determining the $2.5 million
threshold for applicability of the rule, compliance date of the rule,
major renovations, multiple buildings, leased buildings, Federal
buildings overseas, residential buildings, privatized military housing,
and other relevant comments.
1. Determining the $2.5 Million Threshold for Applicability of the Rule
DOE received four comments including the Clean Energy Rule'' should
apply to all new construction without consideration of the $2.5 million
threshold,'' ``the $2.5 million threshold implies that low-rise
residential buildings (such as military
[[Page 78389]]
family housing) will not be included,'' ``replace the mention of the
$2.5 million in 2007 dollars with a table of year by year amounts,''
and ``do not use the $2.5 million threshold for major renovations as
the definition of those renovations already mentions `significant
opportunities' ''. In light of the comment to provide tables with the
year-by-year the $2.5 million in 2007 dollars, DOE has provided a link
to the GSA website where such a table resides. See www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds. In
response to comments suggesting different cost thresholds, the cost
threshold at 42 U.S.C. 6834(3)(D)(I) forms the basis of the $2.5
million in 2007 cost threshold. DOE maintained use of this threshold in
this SNOPR for consistency with the statutory requirement.
2. Compliance Date of the Rule
DOE received two comments on this topic, including a comment that
the rule is overdue and another that DOE should finalize this rule only
when DOE feels that agencies can meet the requirements in the rule,
especially for the requirements in year 2030 and beyond. DOE is issuing
this SNOPR with the intent of establishing these standards
expeditiously. DOE also believes that agencies can now meet the
requirements of this revised SNOPR as the new proposal would simply
require elimination of on-site fossil fuel usage in the years 2030 and
beyond.
3. Major Renovations
DOE received four comments on the 2014 SNOPR related to major
renovations, including (1) agencies might break up their renovations
into smaller pieces to avoid the rule's scope, (2) DOE should eliminate
requirements for major renovations that involve single components or
systems, (3) DOE should provide instructions for how to deal with major
renovations for part of a building, and (4) agreement with DOE's
previous decision to drop a 25 percent replacement cost threshold that
appeared in the original NOPR. In response, DOE accepted the first,
third, and fourth comments, but rejected the second comment. DOE will
attempt to discourage the possibility of ``breaking up renovation
projects to get around the cost threshold'' in the guidance document
that will accompany this rule. DOE notes that section 433 states that
``[i]n establishing criteria for identifying major renovations that are
subject to the requirements of this subparagraph, [DOE] shall take into
account the scope, degree, and types of renovations that are likely to
provide significant opportunities for substantial improvements in
energy efficiency.'' 42 U.S.C. 6834(a)(3)(D)(ii). This indicates
Congressional intent that the term ``major renovations'' should be
construed broadly to include projects for which agencies can
practicably implement the energy efficiency and fossil fuel reduction
goals of ECPA and EISA. DOE believes that major renovations that are
less than whole building renovations, i.e., component and system level
renovations, can provide significant opportunities for substantial
improvements in efficiency and reduction of fossil fuel usage across
the Federal building portfolio. Accordingly, this proposed rule
addresses how building systems and components should be addressed if
only part of the building is renovated, and the requirements for these
renovations are not based on the whole building targets that apply to
new construction and major renovations of the whole building.
4. Multiple Buildings
DOE received one comment in this category supporting DOE's decision
to apply the $2.5 million threshold to individual buildings rather than
to multiple buildings in a single project. DOE concludes that the $2.5
million threshold should apply to individual buildings in order to
determine whether they are covered buildings under this rule. The
statute mandates that the requirements apply to ``buildings,'' not
``projects'' or ``developments.'' (42 U.S.C. 6834(a)(3)(D)(i))
5. Leased Buildings
DOE asked for and received two comments on leased buildings. One
comment pointed out that applying this rule to short term leases would
preclude the use of Utility Energy Service Contracts (``UESCs'') or
Energy Savings Performance Contracts (``ESPCs''). DOE notes that
agencies may implement UESCs and ESPCs in leased buildings.\9\
Therefore, the rule's requirements would apply to renovations of such
leased buildings where the cost thresholds are met. However, DOE does
not anticipate that many, if any, agencies would implement such
renovations in short-term leases, and expects that most renovations of
short-term leases would likely fall under the cost thresholds of the
rule. However, the rule would not apply in cases of Federal agencies
leasing space in buildings where the entire building is not leased to
the Federal Government. This proposed rule only applies to major
renovations of buildings originally built to be leased to the Federal
Government with the exclusion that if the building at issue is not
entirely leased to the Federal Government at the time of renovation,
this proposed rule does not apply. DOE also received a comment
objecting to DOE removing mention of ``significant design control'' as
a limitation to the rule. In response to this comment, DOE points out
that it addressed a similar comment in the issuance of the Green
Building Certification Rule. (79 FR 61563) In that rule, DOE stated
that it has not expressly added the significant control restriction to
the rule for leased buildings because the ECPA definition of Federal
building is limited to buildings that are built specifically for the
Federal government. See 42 U.S.C. 6832. Construction design for a
building built specifically for use of the Federal government,
including under lease to a Federal agency, is, presumably, under the
significant control of the Federal owner or Federal lessee. DOE
reaffirms its previous decision on significant control in this proposed
rule.
---------------------------------------------------------------------------
\9\ More guidance on considerations and implementation of ESPCs
and UESCs in leased spaces may be found on FEMP's web page. For
ESPCs: https://www.energy.gov/sites/default/files/2022-07/espc_faq_42-usc-8287-0622.pdf. For UESCs: https://www.energy.gov/eere/femp/frequently-asked-questions-about-federal-utility-energy-service-contracts.
---------------------------------------------------------------------------
6. Federal Buildings Overseas
DOE received no comments on this topic in the 2014 SNOPR. DOE re-
affirms its statement that this proposed rule will 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)).
7. Residential Buildings
DOE received no comments on residential buildings in the 2014
SNOPR. Therefore, DOE does not believe any changes to the proposed
[[Page 78390]]
language in the 2014 SNOPR are needed. The statute requires the
inclusion of all Federal buildings, including residential buildings
that are EISA-subject buildings.
8. Privatized Military Housing
DOE received no comments on this topic in the 2014 SNOPR.
Therefore, DOE will confirm its use of the EISA 2007-modified ECPA
definition of ``Federal building'' to apply to any building to be
constructed by, or for the use of, any Federal agency. Such 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, 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)'' of section 433
of EISA. (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 rule will apply to privatized military housing with
construction costs of at least $2.5 million. As described in this
preamble, this cost threshold applies on an individual building basis.
9. Other Relevant Comments
DOE received three comments in this category. One comment from
electric utilities indicated that fossil fuel generated energy
consumption of a building should only apply to on-site energy
consumption. DOE agrees with this comment and this proposed rule is
based solely on on-site fossil fuel usage. A second comment indicated
that the rule should include all Federal buildings due to the long term
ecological and economic benefits of the rule. DOE notes that under
section 433 of EISA 2007, there is a clear limit to the application of
this rule to larger and costlier buildings and major renovations so DOE
declines to expand the rule to additional Federal buildings. A third
comment indicated that the use of energy efficient buildings is not
only ecologically sound but also of great strategic value, due to the
increases in energy costs and the reduction of government funds to pay
for programs and these costs. DOE agrees with this comment.
B. Establishing and Using the Baseline
This category was divided into nine subcategories: CBECS and RECS
baselines, climate adjustment, plug and process loads, differentiating
between fossil fuels, regional fossil fuel factors, marginal source of
electricity, residential common areas, major renovations, and other
relevant comments.
1. CBECS and RECS Baselines
DOE received two comments in this category--one asking if DOE was
planning to update the rule to refer to the 2012 CBECS when that data
became available and another questioning the statistical significance
of the CBECS data when it is split at the building category level. In
response, DOE notes that EISA 2007 requires the use of 2003 CBECS and
RECS as a baseline. DOE also notes that because this proposed rule
includes a gradual increase to 100 percent fossil fuel-based energy
consumption reduction in 2030, the use of a single, unchanging baseline
is necessary.
DOE believes that while there may be some loss of statistical
significance by using disaggregated building types and climate zones,
the flexibility the disaggregation provides agencies in terms of
selecting a building type and climate zone that much more accurately
reflects an agency's building and its location outweighs the loss of
statistical significance.
2. Climate Adjustment
DOE received no comments on this topic in the 2014 SNOPR.
Therefore, DOE re-affirms its commitment to including fossil fuel-based
energy consumption reduction targets based on both building type and
climate zone in the rule.
3. Plug and Process Loads
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. In response, DOE received 15 comments on plug
and process loads. Given that DOE has revised the scope of this
proposed rule to apply only to on-site fossil fuel usage associated
with heating, hot water, generation of electricity, and cooking,
virtually all these comments are no longer applicable. Plug loads
(entirely electric) are excluded from this proposed rule. Certain
process loads that use fossil fuel may be applicable in the petition
process.
4. Differentiating Between Fossil Fuels
DOE received several comments on the NOPR about differentiating
between fossil fuels i.e., natural gas versus crude oil. The comments
varied, although most favored differentiating between fossil fuels. DOE
received three comments on the 2014 SNOPR on this topic, with two
comments agreeing that not differentiating between fossil fuel was
appropriate and one comment focusing on the source emissions factors
used by DOE. In response, DOE notes that this proposed rule focuses on
only on-site fossil fuel emissions. DOE notes that the targets, while
based on the actual fossil fuels used in CBECS and RECS buildings, are
expressed only in terms of overall kBtu per ft\2\ of fossil fuels or
CO2e per ft\2\ of emissions, thus keeping with DOE's
original intent of not differentiating between fossil fuels. DOE also
notes that since the rule is now focused on on-site fossil fuel use
only, the issue of source emission factors for electricity is now less
important as DOE is no longer proposing to regulate the fossil fuel
content of electricity used in Federal buildings. DOE does acknowledge
that the source emission factors related to electricity are used in
DOE's analysis of the impacts of the rule and that DOE will use the
latest available source emission factors from DOE and EPA.
5. Regional Fossil Fuel Factors
DOE indicated in the 2010 NOPR that it was considering a regional
approach to establishing the fossil fuel fraction associated with
electricity and asked for comments. In the 2014 SNOPR, DOE decided to
use the national electric power mix in determining the fossil fuel
portion of electricity consumption in the rule. DOE received no
comments on this topic in the 2014 SNOPR, so DOE re-affirms those
decisions in this second SNOPR. DOE also notes that this issue is much
less important in this proposed rule as DOE is no longer regulating the
fossil fuel content of grid electricity used in Federal buildings. DOE
does acknowledge that the source emission factors related to
electricity are used in DOE's analysis of the impacts of the rule and
that DOE will use the latest available source emission factors from DOE
and EPA.
6. Marginal Source of Electricity
DOE received a number of comments on this topic in the NOPR and
proposed in the 2014 SNOPR to not use marginal electric source factors.
DOE received two comments on this topic in the 2014 SNOPR, both
agreeing with DOE's decision not to use marginal electrical
[[Page 78391]]
rates. Receiving no other comments, DOE re-affirms its tentative
decision to not use marginal electricity rates in second SNOPR.
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. 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. DOE received no comments on this topic in
the 2014 SNOPR and re-affirms the approach taken in the NOPR and 2014
SNOPR in this second SNOPR.
8. Major Renovations
As noted previously in this document, the CBECS and RECS data that
provide the baseline for this proposed 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, in the 2014 SNOPR, DOE proposed
that the requirements for system and component level retrofits be based
on the 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
requested 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. DOE received five comments on this topic
in the 2014 SNOPR. Comments ranged from agreement with DOE's approach
to not require major renovations of systems or components to meet the
full target to opposition to DOE's approach because it did not require
specific evaluation of the renovation petitions, to comments that DOE
should expand the scope of the rule to all renovations, even those that
did meet the cost threshold, and other comments that DOE should apply
the requirements of ASHRAE Standard 90.1 and the IECC to renovations,
and comments that DOE should not even consider major renovations that
do not involve the whole building, but which happen to meet the cost-
threshold.
In response, DOE notes major renovations are required to be part of
this proposed rule by statute, and that DOE believes any renovation
that meets the cost-threshold of the rule and falls within the scope of
the rule should comply with the rule unless agencies go through the
petition process for specific considerations of a given project. DOE is
proposing this approach to allow agencies to take a more holistic view
of their renovation projects over time, so that projects resulting in
load reductions (such as insulation improvements) as well as
electrifying end-uses can be implemented in a complimentary fashion.
DOE also notes that for major renovations involving only replacement of
equipment (such as boilers), there is little else DOE can direct
agencies to do other than to use high efficiency equipment (as is
required under 10 CFR part 436, subpart C) and to require that that
equipment uses electricity and not fossil fuels. DOE cannot require
agencies to renovate other parts of the building. For major renovations
that involve renovation of individual systems (such as hot water or
heating, ventilation, and air-conditioning (``HVAC'') systems), DOE is
requiring agencies to use high efficiency equipment that uses
electricity and not fossil fuels and meet the renovation requirements
of the baseline standards in 10 CFR part 433 (ASHRAE Standard 90.1-
2019) or 10 CFR part 435 (the 2021 IECC), as appropriate. DOE notes and
encourages on-site renewables such as solar and storage as good
practice.
9. Other Relevant Comments
Three additional comments were submitted that do not fit into one
of the scope subcategories. One comment recommended using embodied
energy in the rule. DOE noted that it was required to use CBECS and
RECS data per statute and that CBECS and RECS do not contain embodied
energy. Two other comments recommended that DOE implement a multiplier
based on hours of operation for Federal buildings that are in operation
longer than corresponding private sector buildings found in CBECS. DOE
found these two comments persuasive because many types of Federal
buildings are operated longer hours than typical buildings covered in
CBECS and RECS. In addition, DOE notes that hours of operation are
already considered in tools such as ENERGY STAR Portfolio Manager which
agencies are required to use as part of their building benchmarking
activities. (42 U.S.C. 8253(f)(8)) The hours of operation of a building
are also implicit in any whole building simulation done on a building
design, with longer hours of operation typically leading to higher
energy usage. The proposed shift multiplier in this proposed rule is
based on analysis by Oak Ridge National Laboratory and was originally
developed for ASHRAE Standard 100-2018 and is expressed in ``number of
operating shifts'' as opposed to actual hours of operation. Shift
multipliers provided are both less than and greater than 1 depending on
building type. For government offices, for example, operating the
building for 2 shifts does not increase the energy usage, but operating
the building 3 shifts increases the energy use by a multiplier of 1.4.
DOE notes that residential buildings, by their very nature, are already
considered to be 24-hour operation and, therefore, this multiplier will
only apply to Federal commercial buildings regulated under 10 CFR part
433.
C. Methodology To Determine Compliance
DOE categorized comments on the methodology to determine compliance
in six subcategories: whole building simulation, off-site and on-site
renewable energy and renewable energy certificates, use of source
energy, fuel conversion efficiency, and on-site energy generation from
natural gas. Each of these subcategories is discussed below.
1. Whole Building Simulation
To determine energy use in the proposed building design, DOE
proposed in the 2010 NOPR and re-affirmed in the 2014 SNOPR 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
[[Page 78392]]
buildings, and the IECC 2004 Supplement for low-rise buildings. 75 FR
63409. Because of the complexity involved in estimating fossil fuel-
generated energy consumption, this requirement would effectively
require the use of a whole building simulation tool, which can be
difficult and increases cost.
In the 2014 SNOPR, DOE recognized that the whole building approach
is likely not appropriate for major renovations that are limited to
system or component level retrofits. For major renovations that are
less than whole building renovations (i.e., system or component level-
retrofits) DOE proposed establishing the maximum allowable fossil fuel
consumption in fiscal years 2018 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 proposed basing the subject fossil fuel-generated
energy consumption on the system or component as retrofitted. This will
require the design engineer to estimate both the energy consumption of
the systems or components as renovated and the energy consumption of
the entire building as renovated.
DOE received no comments on the use of whole building simulation,
but DOE has changed its adopted approach to major renovations to system
and components in a manner which will no longer require whole building
simulation, as described in this section. Instead, component and system
level renovations will be required to use electric or non-fossil fuel
using FEMP designated or ENERGY STAR equipment and system level major
renovations will be required to use the same electric or non-fossil
fuel using FEMP designated or ENERGY STAR equipment and major
renovation requirements in the baseline standards for 10 CFR part 433
and 10 CFR part 435. (ASHRAE 90.1-2019 is the current baseline standard
for 10 CFR part 433 and the 2021 IECC is the current baseline standard
for 10 CFR part 435.)
2. Off-Site and On-Site Renewable Energy and Renewable Energy
Certificates
In the NOPR and 2014 SNOPR for this rule, DOE considered both the
on-site fossil fuel usage and the fossil fuel use associated with the
electricity used on site. As part of compliance with the NOPR and 2014
SNOPR versions of the rule, renewable energy and renewable energy
certificates were allowed for compliance with this rule. This topic
area was the single most commented on topic area in the 2014 SNOPR,
with 51 comments being received. However, given that DOE has chosen to
refocus this rule on just on-site fossil fuel usage, the entire concept
of using (or not using) renewable energy or renewable energy
certificates to meet this rule is no longer relevant. Therefore, DOE
will not list all the comments related to the use of renewable energy
and renewable energy certificates from the 2014 SNOPR.
3. Use of Source Energy
DOE previously made use of source energy for both on-site fossil
fuel usage and electrical usage in the NOPR and 2014 SNOPR. DOE
received six comments on this topic in response to the 2014 SNOPR.
However, with the refocus of the rule to just on-site fossil fuel
usage, consideration of source energy is no longer relevant. DOE will
use on-site fossil fuel usage using the directions provided for Federal
greenhouse gas emission calculation as noted previously in this
proposed rule. The six comments will not be discussed in this SNOPR.
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 energy factor
of 0.316 from the most recent year data was available, 2008.
DOE made several definition changes in the 2014 SNOPR and added a
new source energy multiplier for other fuels. DOE received no comments
on this topic on the 2014 SNOPR, but DOE has made one further
refinement to its treatment of fuel conversion efficiency in this
proposed rule. DOE has added reference to ``coke'' \10\ and used the
same source energy multiplier as for coal and other fossil fuels. This
action brings this proposed rule more into alignment with how fossil
fuel usage is reported to FEMP under the requirements of EISA 2007
Section 432. The new fuel conversion efficiencies are taken from FEMP's
Annual Reporting Template for agencies.
---------------------------------------------------------------------------
\10\ Coke is defined as a solid carbonaceous residue derived
from low-ash, low-sulfur bituminous coal from which the volatile
constituents are driven off by baking in an oven at temperatures as
high as 2,000 degrees Fahrenheit so that the fixed carbon and
residual ash are fused together. Coke is used as a fuel and as a
reducing agent in smelting iron ore in a blast furnace.
---------------------------------------------------------------------------
5. On-Site Energy Generation From Natural Gas
The 2010 NOPR indicated DOE's interest in the effect of the fossil
fuel-generated energy consumption reduction requirements on distributed
energy technologies that provide on-site 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 in
order to not discourage the use of on-site CHP systems, within the
limits of the statutory language. DOE invited comments on the NOPR 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 on the 2010 NOPR. Based on the comments received and a
technical review of the issues raised, DOE proposed specificity on how
CHP and district heating systems should be considered in the 2014
SNOPR. Under this proposed rule, 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 proposed
below. Because the electricity 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 previously,
would be
[[Page 78393]]
deducted from the proposed design site electricity in Equation 1 under
the renewable energy and CHP deduction.
In response to the 2014 SNOPR, DOE received 22 comments from
natural gas associations, utilities, and manufacturers of gas turbines
and fuel cells, most opposing the application of this rule to natural
gas as doing so would will preclude the use of natural gas in the
future which is problematic not only because it is an economical and
environmentally beneficial domestic fuel, but also because doing so
would be fundamentally inconsistent with the then Administration's
support of CHP and the then Administration's goals to promote greater
use of alternative fuels by Federal agencies. This subcategory was the
second most commented on topic in the 2014 SNOPR.
In response to these comments, DOE emphasizes, once again, that
this proposed rule is based directly on congressionally mandated
language in section 433 of EISA 2007, which governs fossil fuel-
generated energy consumption. DOE notes that the use of natural gas,
CHP, and alternative fuels is not entirely prohibited by this rule
(until 2030), although all fossil fuel usage must be accounted for and
is regulated by this proposed rule.
6. Other Relevant Comments
DOE received fourteen additional comments relating to methodology
that did not fit into one of the other subcategories in this larger
topic. These comments covered potential exclusions for thermal and
electrical energy storage systems, making this rule be based on an
agency portfolio (as opposed to on a building-by-building basis),
exemption of emergency backup systems, exemptions for fuel use for
alternatively fueled vehicles (``AFVs''), potential credits for nuclear
and hydropower electricity, and the need to rewrite the main equation
in the rule.
In response to the comments about energy storage systems, DOE's
rewrite of the rule to focus only on on-site combustion of fossil fuels
makes any discussion of electrical energy storage moot. If agencies
choose to burn fossil fuels to store heat in a thermal energy storage
system, that fossil fuel would be counted as part of the consumption of
the building. DOE notes that this rule applies to individual buildings
based on statutory requirements, so DOE cannot change this rule to a
portfolio approach. DOE notes that while emergency backup systems are
part of the Scope 1 emissions covered by this rule, DOE has implemented
a specific exemption for emergency backup generators that are used
solely for emergency backup. Any use of these backup generators for
peak shaving, peak shifting, or other demand management activities must
be included in the building consumption.
With respect to mobile sources, section 433 of EISA refers to the
fossil fuel-generated energy use of ``Federal buildings.'' 42 U.S.C.
6834(a)(3)(D)(i). Under ECPA, the term ``building'' means ``any
structure to be constructed which includes provision for a heating or
cooling system, or both, or for a hot water system.'' 42 U.S.C. 6832.
This does not include mobile sources. Accordingly, mobile sources are
excluded from the scope of this rule. Finally, DOE notes that credits
for nuclear and hydropower electricity are no longer relevant to this
proposed rule and that the governing equation in this proposed rule has
been extensively rewritten and simplified in accordance with the change
of scope.
D. 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, however, DOE proposes that GSA tenant
agencies that have design control over their buildings and make
significant design decisions that will allow for compliance with the
rule may petition DOE for a downward adjustment, even if that building
is owned by GSA. DOE also proposes a downward adjustment process for
new construction and major renovations that are whole building
renovations, as well as for major renovations that are limited to
system or component level renovations.
1. Technical Impracticability as a Basis for Downward Adjustment
Technical impracticability is defined as a situation in which
achieving the Scope 1 fossil fuel-based energy consumption targets
would: (1) not be feasible from an engineering design or execution
standpoint due to existing physical or site constraints that prohibit
modification or addition of elements or spaces; (2) significantly
obstruct building operations and the functional needs of a building,
specifically for industrial process loads, research operations, and
critical national security functions, mission critical information
systems as defined in NIST SP 800-60 Vol. 2 Rev. 1; or 3) significantly
degrade energy resiliency and energy security of building operations as
defined in 10 U.S.C. 101(e)(6) and 10 U.S.C. 101(e)(7), respectively.
Upon determination that complying with these standards is technically
impracticable, the building would still be required to reduce fossil
fuel consumption to the maximum extent practicable. Technical
impracticability may include technology availability and cost
considerations but may not be based solely on cost considerations.
The 2010 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 also
invited comments on what kind of technical impracticability would
constitute grounds for a petition for downward adjustment. DOE received
a number of comments on this topic in the NOPR and restated its
position in the 2014 SNOPR that cost could not be the sole rationale
for a determination of ``technically impracticable.'' DOE also
emphasized in the 2014 SNOPR 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. DOE received no further comments on
this topic in the 2014 SNOPR and thus reaffirms its intent to not allow
cost as the sole rationale for a determination of technically
impracticable, but also to consider an agency's functional needs in
that determination.
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.
[[Page 78394]]
DOE agreed 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. In the 2014 SNOPR, DOE stated that
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 also noted in the 2014 SNOPR that 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 and location; (2) that are being designed and constructed
to the same set of targets for fossil fuel-generated energy consumption
reduction; and (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. Projects involving
multiple new buildings would need to submit separate petitions for each
building if they do not meet criteria (1)-(3) previously listed. For
component-level major renovations, the 2014 SNOPR stated that DOE is
considering allowing bundling petitions that are of the same component
and building type.
In response, DOE received one comment on bundling of petitions. AGA
and other utilities supported the concept of bundling of petitions.
(AGA et al No. 18 at p.6). DOE agrees that bundling of petitions for
buildings of the same building type and function in a similar location
is a useful feature of the process and bundling is being proposed. DOE
encourages agencies to submit a singular petition with all of the
information on groups of similarly situated buildings to help
streamline the review process.
3. DOE Review Process
The 2010 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 previous discussion, DOE will
concur with the agency's conclusion and notify the agency in writing.
If DOE does not concur, it will 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 in the
NOPR. In response, DOE recognized that agencies want assurance that DOE
will respond to petitions in a timely manner in order to avoid project
delays. For petitions for new construction, DOE proposes to make a best
effort to notify an agency in 45 calendar days of submittal whether a
petition is approved or rejected, granted the petition is complete. If
DOE rejects the petition, it would include its reasons for doing so in
its response to the agency. Additionally, for new construction, DOE
proposed 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
impracticable 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. For petitions for downward adjustments to the
requirements applicable to major renovations, DOE proposed that the
downward adjustment would be granted upon submission of specified
certifications. The necessary certifications are discussed in greater
detail in section III.D.5 in this document. In response, DOE received
five comments on its review process.
The Department of Defenses (``DOD's'') Office of the Under
Secretary of Defense (``OUSD'') \11\ and the Office of the Deputy Under
Secretary of Defense (Installations and Environment) (``ODUSD(I&E)'')
stated that regardless of project type, all petitions for downward
adjustments should be deemed approved upon submittal to DOE. (OUSD-AF 9
at p.6 and ODUSD(I&E) 16 at p.4) In response, DOE notes that approving
all petitions for downward adjustment without reviewing the petitions
to ensure that the Secretary of DOE concurs with the petition would be
contrary to the statutory requirement that DOE review and concur on
each petition submitted. (42 U.S.C. 6834(a)(3)(D)(i)(II)) The American
Gas Association (``AGA'') and other utilities commented that they
support DOE's proposed review process (AGA et al No. 18 at p.6) and
they also requested that DOE consider the cost-effectiveness of fossil
fuel energy reduction measures to the greatest extent possible in the
downward reduction process. (AGA et al No. 17 at p.6) In response, DOE
notes that the statutory requirement for adjusting the fossil fuel-
generated energy consumption requirements is technical
impracticability. As previously noted, DOE will consider cost and cost-
effectiveness through that lens; however, cost or cost-effectiveness
impacts cannot be the only reason a petition is approved. (See section
E.1 of this proposed rule for additional discussion of cost.)
---------------------------------------------------------------------------
\11\ OUSD submitted 4 sets of comments--one set on behalf of the
Air Force (marked ``-AF''), another set on behalf of the U.S. Army
Corps of Engineers (marked ``-USACE''), a third set on behalf of the
Army (marked ``-Army''), and a final set on behalf of OUSD's
Facility Energy and Privatization director (marked ``-FEP'').
---------------------------------------------------------------------------
Earthjustice noted that despite mention in the preamble, the
regulatory text of the 2014 SNOPR fails to recognize that, to evaluate
petitions for downward adjustments, DOE needs a description of all
technologies and practices that an agency evaluated and rejected,
including a justification as to why the technologies were not included
in the design. (Earthjustice No. 4 at p.3)
DOE agrees with Earthjustice with respect to documentation
requirements for downward petitions for whole building renovations.
This documentation should be identical to that required for new
construction petitions. This change was made in this proposed rule. DOE
expanded the type of building specific information that DOE is
requesting in petitions as requested by Earthjustice but is doing so in
a manner that allows DOE to analyze what possibilities each petitioner
has to meet the rule in its renovation. DOE changed the rule to require
the director of FEMP to approve each petition after reviewing this
building-specific information.
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.
DOE received several comments on the NOPR and provided more
detailed
[[Page 78395]]
petition requirements in the 2014 SNOPR that allows DOE to determine
more comprehensively whether a downward adjustment should be approved.
DOE proposed a modified provision that requires a Federal agency to
demonstrate that the requested adjustment represents the largest
feasible fossil fuel reduction that the agency can reasonably achieve
by providing evidence that the agency included all life-cycle cost-
effective energy efficiency and on-site renewable energy measures in
the design and by providing a description of the technologies and
practices that the agency evaluated and rejected, including a
justification as to why these technologies and practices were rejected.
Finally, agencies would also be permitted to provide additional
information they think will help justify the request for downward
adjustment.
As per the 2014 SNOPR, 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, the total estimated project cost,
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, expected number of occupants
and occupant schedule, and functional needs of the building, and any
other information the agency deems pertinent. The building energy
Federal agencies must describe includes the HVAC systems and service
water heating system, as well as the loads in the building, including
any specialized process, specialized research loads, electric vehicle
charging stations, alternatively fueled vehicle fueling stations, and
emergency backup generators. 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.
DOE received one comment on the information required in petitions
for new construction. An individual commenter suggested that to
discourage excessive petitions for downward adjustment, DOE should
require a comprehensive analysis of the selected and rejected energy
efficiency measures or technologies, similar to methods employed in a
Level II energy audit as defined by the American Society of Heating,
Refrigeration and Air-Conditioning Engineers (``ASHRAE''). In response,
DOE notes that Federal agencies are already required to perform audits
on 25 percent of their buildings every year under the provisions of
section 432 of EISA 2007. DOE believes that dividing major renovations
into three categories that each have their own threshold for DOE
granting of a petition for downward adjustment (e.g., whole building
renovations, system level renovation, and component level renovations)
should keep the number of petitions submitted by agencies to a minimum.
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.
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 will be provided at a level
equal to the energy efficiency level that would be achieved were the
proposed building designed to meet the baseline energy efficiency
standard applicable to new construction in 10 CFR parts 433 or 435. DOE
proposed in the 2014 SNOPR that this adjustment would be available to
GSA-tenant agencies with significant control over building design and
DOE re-affirms this proposal.
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, at minimum, 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.
For major renovations that are limited to system or component level
retrofits, DOE proposed in the 2014 SNOPR 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, i.e., ENERGY STAR or FEMP designated products. For
system level renovations, agencies would adopt as renovation
requirements the relevant parts of new building baseline energy
efficiency standard in 10 CFR part 433 or 435 on a system level (i.e.,
brought up to the performance requirements of the individual sections
of ASHRAE 90.1-2019 (chapters 5-10)) where appropriate and cost
effective, and additionally would follow the replacement guidance for
all equipment that is included in the renovation with ENERGY STAR or
FEMP designated products, per 10 CFR part 436, subpart C. For component
level retrofits, agencies will replace all equipment that is part of
the renovation with ENERGY STAR or FEMP designated products as defined
at 10 CFR part 436, subpart C.
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.
6. Make Information Publicly Available
DOE received some comments on the NOPR that petitions for downward
adjustment should be made publicly available on a DOE website.
Commenters stated that making this information publicly available would
make the process transparent, hold agencies accountable, and could
reduce unsupported petitions. As a result of these comments on the
NOPR, DOE proposed in the 2014 SNOPR to report petition summary level
information in
[[Page 78396]]
the DOE Annual Report to Congress on Federal Energy Management and
Conservation Programs (See www.energy.gov/about/budget.htm).
DOE received two comments on its proposal. Earthjustice commented
that to ensure public accountability, all petitions and DOE responses
should be made publicly available. (Earthjustice No. 9 at p.7) An
individual commenter commented that transparency is an important factor
that will influence the effectiveness of this regulation and create
accountability for meeting the target requirements and deadlines.
(Dirogene No. 3 at p.1) DOE agrees that transparency is important and
will publish any petitions that are filed, deemed complete, and
screened for national security reasons for downward adjustment that are
received (subject to potential filtering for national security reasons)
on the DOE website.
7. Narrow the Use of Petitions
DOE received a few comments on the NOPR related to narrowing the
use of petitions for downward adjustment. In response to these
comments, DOE proposed changes in the 2014 SNOPR that would reduce the
number of petitions submitted for downward adjustment and improve the
content of submitted petitions. DOE expanded the number of building
types covered in Tables A-1a and A-1b to A-2a and A-2b in appendix A of
part 433 and added a methodology for calculating the maximum allowable
fossil fuel-generated consumption values for buildings with process
loads. This was 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, the 2014 SNOPR proposed that
additional information be provided as part of the petition process,
including that Federal agencies must: (1) demonstrate that the
requested adjustment represents the largest feasible fossil fuel
reduction that can be achieved, given agency mission and building
purpose; and (2) 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 requires Federal agencies to
provide 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.
DOE received no comments on this topic in the 2014 SNOPR, so DOE
proposes to require evidence of these additional criteria in petitions
for downward adjustments.
8. GSA Tenant Agencies
ECPA, as amended, does not provide 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 GSA tenant that is 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.
In response to the NOPR, DOE received one comment on this issue
stating that allowing GSA tenant agencies to petition for downward
adjustments contradicts the statute. DOE noted in the 2014 SNOPR that
while the statute prohibits GSA from petitioning DOE for a downward
adjustment, it makes no reference to GSA tenant agencies. DOE will
allow GSA tenant agencies that have significant control over building
design to submit a petition. In such cases, it will be the tenant
agency, not GSA, that is making the design choices that will allow for
compliance with the rule. Allowing GSA tenant agencies to submit a
petition for downward adjustment will 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.
DOE received one comment on this topic in response to the 2014
SNOPR. Earthjustice commented that DOE may not allow tenants of GSA
buildings to petition for downward adjustments of the fossil fuel
reductions because the statute specifically excludes only GSA from the
downward adjustment petition process, expanding the number of buildings
eligible for such adjustments in a manner that directly contravenes the
plain statutory language and that is arbitrary and capricious.
(Earthjustice No. 8 at p.6) DOE reiterates that while the statute
prohibits GSA from petitioning DOE for a downward adjustment, it makes
no reference to GSA tenant agencies. The statute allows for an
``agency'' to petition for a downward adjustment. The term ``Federal
agency'' means any department, agency, corporation, or other entity or
instrumentality of the executive branch of the Federal Government,
including the United States Postal Service, the Federal National
Mortgage Association, and the Federal Home Loan Mortgage Corporation.
42 U.S.C. 6832(5). As the commenter notes, the statute only prohibits
GSA from submitting a petition. Thus, in cases in which the tenant
agency exercises significant control of design choices in the building,
and GSA does not, it makes little sense to prohibit the tenant agency
form petitioning for an adjustment where the statute does not expressly
require it. Moreover, these petitions are still subject to the same
criteria and review process as other petitions and would need to
justify any downward adjustment in accordance with such. Accordingly,
in this SNOPR, DOE has decided to continue to allow GSA tenant agencies
to petition in those cases where GSA tenants have design control.
9. Other Relevant Comments
In this category, DOE received two comments on the 2014 SNOPR.
Earthjustice commented that it is unnecessary to limit the scope of
major renovations covered by the rule to the extent that the renovation
permits compliance with applicable requirements. Earthjustice argues
that as the rule does not apply to unaltered portions of buildings or
buildings systems that are undergoing major renovations it is not
necessary to further limit the scope. Moreover, because ``the scope of
the renovation'' is not a defined term, it may be subject to a broad
interpretation by agencies subject to the fossil fuel reduction
requirement. (Earthjustice No. 5 at p.4)
In response, DOE also notes that this rule is not the only
requirement that mandates that Agencies implement and upgrade their
facilities. Per 42 U.S.C. 8253(f), agencies are required to complete
their annual comprehensive energy and water evaluation for
approximately 25 percent of their covered facilities each calendar year
and through those evaluations agencies will identify and plan for
significant updates and modifications to those covered facilities. This
proposed rule is not the appropriate vehicle for requiring significant
facility upgrades beyond the portions being replaced.
ODUSD(I&E) also commented that requiring individual renovation
projects that have difficulty in meeting the requirements, (regardless
of size, renovation type, scope, funding, climatic conditions, etc.) to
petition
[[Page 78397]]
DOE for downward adjustment may pose significant challenges.
(ODUSD(I&E) No. 1 at p.1) DOE recognizes that petition submittals may
add burden for agencies undertaking major renovations in buildings.
However, EISA provides no recourse to agencies other than petitioning
DOE for major renovations subject to the scope of these standards. As
noted previously, pursuant to the intent indicated by EISA, DOE
construes the term ``major renovations'' broadly to include projects
for which agencies can practicably implement the energy efficiency and
fossil fuel reduction goals of ECPA and EISA, including component and
system level renovations subject to the $2.5 million threshold.
Accordingly, agencies will need to submit a petition to adjust the
relevant reduction targets for such projects. DOE notes that, in this
SNOPR, DOE is proposing to make best efforts to complete review of
petitions within 45 calendar days of receipt for new construction and
major building retrofits and 20 calendar days for component level
retrofits for adjustment consideration. DOE believes this will help
obviate any burden experienced by agencies that submit petitions.
E. Impacts of the Rule
As part of the 2014 SNOPR, DOE requested comments on the impacts of
the proposed rule. DOE received comments in two categories--Cost
Impacts and Other Impacts.
1. Cost Impacts
In response to the 2014 SNOPR, DOE received eight comments on cost
impacts. Several comments recommended referring to the Office of
Management and Budget (``OMB'') Circular A-94 to the rule. In response,
DOE notes that while OMB Circular A-94 is an important document,
section 544 of the National Energy Conservation Policy Act (``NECPA''),
as amended by section 441 of EISA 2007, directed DOE to establish
practical and effective present value methods for estimating and
comparing life-cycle costs for Federal buildings, based on capital and
operating costs during a period of the expected life of the building's
energy system or 40 years, whichever is shorter. See 42 U.S.C. 8254.
Further, Federal agencies must use the DOE-established methods in the
design of new Federal buildings and the application of energy
conservation measures to existing Federal buildings. Id. at (b)(1). DOE
established life-cycle cost analyses methodologies and procedures in 10
CFR part 436, subpart A. Federal agencies are already using the
methodologies and procedures in 10 CFR part 436, subpart A when meeting
the energy efficiency obligations in 10 CFR parts 433 and 435. To
ensure consistency across Federal buildings regulations, DOE will
continue to use the same methodologies and procedures.
Other comments suggested that the life-cycle costs of implementing
new requirements under the fossil energy reduction rule are
underestimated and that costs for compliance should be more closely
examined. In response to these comments, DOE based its costs on the
best available estimates it had at the time.
Several comments stated that while the 2014 SNOPR explicitly did
not consider costs, because of the obligations imposed by the statute,
exorbitant additional expenditures remain unjustified. Further comments
implied that because of the inherent efficiency of natural gas used
directly on site, the overall impact of displacing natural gas use with
electrically powered alternatives will be an increase in total GHG
emissions, a decrease in energy productivity of Federal buildings, and
increased energy costs to Federal agencies and ultimately to taxpayers.
In response, DOE notes that had Congress intended for DOE to consider
costs in establishing the fossil fuel use reduction targets in this
rule or in adjudicating petitions it would have specified to do so.
Instead, Congress directed DOE to use the specific reduction targets
contained in 42 U.S.C. 6834(a)(3)(d)(i)(I), and base DOE's petition
adjudication decisions on agency determinations of technical
impracticability.
However, while DOE did not consider costs in setting the reduction
targets or petition requirements, as part of its obligations under
Executive Order 12866 to inform the public of the impacts of the
proposed rule, DOE analyzed the costs and benefits of the rule proposed
in the 2014 SNOPR and in this proposed rule, and has tentatively
concluded that the rule as a whole saves both site energy and life-
cycle cost.
Other commenters also requested that DOE present its construction
cost increases as a percentage of total cost on both a year and
cumulative basis and provide more detail about DOE's assumptions
underlying the analysis. The commenters further requested that DOE also
explain why its year 2020 costs and beyond are relatively constant,
stating that they believe that compliance costs will grow much more
significantly as permitted fossil fuel energy consumption nears zero.
All assumptions used in the RIA are documented in the RIA document. The
costs for year 2020 and beyond are relatively constant because DOE
assumed that by 2020, agencies would be able to achieve the maximum
estimated savings for major renovations by that time.
Another comment was made that a problem with the cost estimate is
that the RIA makes no reference to life cycle costs, even though
section 109 of Energy Policy Act of 2005 (``EPAct 2005'') requires
technologies employed be life[hyphen]cycle cost[hyphen] effective.
(ODUSD(I&E) No. 4 at p.1) DOE notes that section 109 of EPAct 2005
amended section 305 of ECPA, which was later amended by section 433 of
EISA, which provides the authority for this rulemaking. The amendments
made by section 433 of EISA did not include requirements or references
to life-cycle cost-effectiveness with respect to the fossil fuel-
generated energy consumption reduction targets of EISA section 433. If
Congress intended for life-cycle cost-effectiveness to be considered as
part of these reduction targets, it would have specifically stated so
in section 433 of EISA as it did in the amendments in section 109 of
EPAct 2005. Moreover, DOE does not see a conflict between this rule and
the Federal building energy efficiency rules in 10 CFR parts 433 and
435 in terms of life-cycle cost-effectiveness.
2. Other Impacts
DOE also received eighteen comments on other impacts of the rule.
One comment stated this rule is an action that would have a significant
adverse effect on energy, and therefore DOE must prepare a Statement of
Energy Effects pursuant to E.O. 13211. See 79 FR 61722. In response,
DOE states that this rule is not a significant energy action requiring
a Statement of Energy Effects pursuant to E.O. 13211, because it is not
expected to have a significant adverse effect on the supply,
distribution, or use of energy. According to the Office of Management
and Budget, ``adverse effects'' requiring a statement under E.O. 13211
include significant (1) reductions in the production or supply of crude
oil, coal, natural gas, or other fuel; (2) increases in energy use; or
(3) increases in the cost of energy production or distribution. The
current action implements a statutory mandate to reduce fossil fuel
energy use in Federal buildings. As such, this action cannot reasonably
be expected to reduce the production or supply of fuel, increase energy
use, or significantly increase the cost of energy production.
Several other comments suggested that the proposed mandate is not
only
[[Page 78398]]
costly and impractical, but also infeasible, not flexible enough, or
absolutely unattainable. In response, DOE notes that DOE's rule is
based directly on Congressionally mandated language in section 433 of
EISA 2007, which governs fossil fuel-generated energy consumption. Per
the statute, however, the rule does allow for the downward adjustments
of the required reductions in some cases.
Other comments supported the rule, by pointing out that this rule
presents DOE with a significant opportunity not only to reduce the
Federal Government's own energy costs and environmental footprint, but
also to influence the design of both state and local government
buildings as well as all new residential and commercial buildings.
Therefore, this proposed rulemaking is an opportunity for the Federal
Government to use its large purchasing power to drive and transform
markets for greater efficiency and reduced fossil fuel consumption in
all buildings. Two additional supportive comments commended DOE for
working with stakeholders to craft the 2014 SNOPR and pointed out that
the rule will increase the ability to design and build facilities that
use less energy, save energy, save taxpayers money, and protect the
environment; and also that stakeholders from varying industries have
been working with the Department of Energy to implement this rule in a
way that is smart, efficient, and effective, noting that some have
argued that these targets are not achievable, but building and
sustainability professionals are already succeeding in making Federal
facilities meet sustainability targets, including DOE's new Research
Support Facilities (``RSF'') in Colorado, which opened in 2010. More
importantly, private sector owners are increasingly adopting these
technologies and strategies for their buildings.
DOE also received six comments on the use of the social cost of
carbon (``SCC''). DOE is presenting monetized benefits in accordance
with the applicable Executive Orders and DOE would reach the same
tentative conclusion presented in this SNOPR in the absence of the
social cost of greenhouse gases, including the February 2021 Interim
Estimates presented by the Interagency Working Group on the Social Cost
of Greenhouse Gases.
F. Guidance and Other Topics
DOE requested specific comment in the 2010 NOPR and 2014 SNOPR on
what additional training and guidance would help agencies meet the
reductions called for by this statute. DOE received a single comment on
this topic in the 2014 SNOPR. That comment focused on the fact that DOE
had not included implementation of sub-metering as a requirement for
new Federal buildings and major renovations for Federal buildings
because the compulsory implementation of sub-metering should alleviate
future stresses related to clarification of major renovations, improve
accuracy of process load baselines for future Federal building
construction, and aid in verification of building simulation models
developed during the design stage (especially since they are enforced
under this rule for current and future projects). The commenter further
stated that dissemination of sub-metering in Federal buildings is
instrumental in achieving an intelligent grid capable of improving
delivered power quality and inducing energy efficient behavior from
building owners and operators. In response, DOE notes that agencies are
already subject to certain metering and advanced metering requirements.
42 U.S.C. 8253(e). DOE has issued metering guidance for Federal
agencies in accordance with the Energy Policy Act of 2005, EISA 2007,
and the Presidential Memorandum ``Federal Leadership on Energy
Management''. See www.energy.gov/eere/femp/articles/doe-releases-Federal-building-metering-guidance for more details. DOE notes this
guidance addresses metering, and not sub-metering, in accordance with
Congressional and Presidential direction. Neither sub-metering nor
metering is expressly mentioned in section 433 of EISA 2007. Therefore,
those topics are not addressed in this SNOPR.
IV. Methodology, Analytical Results, and Conclusion
DOE acknowledges exchanging on-site fossil fuel generated energy
for reliance on the electric grid, which may still be generating energy
with fossil fuels, doesn't necessarily lead to an immediate reduction
in emissions of GHGs and SO2 and in some cases (and as a
whole) may result in increased energy costs. However, this proposed
rule is intended to prepare federal buildings for a green energy
future. By ensuring that federal buildings are designed--either from
the ground up, or when being renovated--to rely on the electric grid,
the rule ensures that long-term, as the grid integrates more carbon
free energies, emissions will be reduced. In addition, DOE expects
emerging and improving technological advancements in electric equipment
such as heat pumps will lead to additional and dramatic site energy
savings further improving the emissions and cost savings cases for this
rule.
A. Cost-Effectiveness
DOE's assumptions and methodology for the cost-effectiveness of
this rule are built upon the cost-effectiveness analysis of ASHRAE
Standard 90.1-2019 conducted by DOE's State building energy codes
program,\12\ as well as DOE's Environmental Assessment (EA) for this
proposed rulemaking.\13\ As described in the EA, DOE identified a rate
of new Federal commercial construction of 13.3 million square feet per
year with a distribution of building types as shown in Table IV.1.
Starting in the year 2030, section 205(c)(ii) of Executive Order 14057,
``Catalyzing Clean Energy Industries and Jobs Through Federal
Sustainability.'' (December 8, 2021) requires to ``design new
construction and modernization projects greater than 25,000 gross
square feet to be net-zero emissions by 2030''. This effectively
reduces the impact of this rule to apply to new construction and major
renovation projects that fall above the cost threshold but are also
below 25,000 gross square feet. For the year 2030 and beyond the
estimated new Federal commercial and multi-family high-rise residential
building construction volume per year will be 2.2 million square feet
per year with a distribution of building types as shown in Table IV.2.
The distribution of building types is based on an extraction of the
latest 10 years of new construction data entered into the Federal Real
Property Portfolio Management System (``FRPP MS'') that meets the
required cost threshold of the proposed rule for cases both before and
after the 25,000 Sf minimum triggering E.O. 14057 compliance.\14\
Additionally DOE identified an estimated rate of federal major
renovation projects that would be influenced by this rule. To do so DOE
utilized data from the Federal Compliance Tracking System (``CTS'')
where agencies report data on building efficiency improvement projects.
The
[[Page 78399]]
data from CTS was queried to include only those projects which would
meet the cost threshold and have impacts on site fossil fuel energy
consumption. As not all agencies are compliant in reporting data into
CTS, results were scaled up to account for agencies out of compliance.
CTS does not supply data on the types of buildings for the reported
projects, as such the distribution of eligible federal buildings for a
renovation that would meet the cost threshold was applied to the
estimated project square footage. DOE identified a rate of new Federal
major renovation construction of 1.36 million square feet per year with
a distribution of building types as shown in Table IV.1. Starting in
the year 2030, section 205(c)(ii) of Executive Order 14057 ``Catalyzing
Clean Energy Industries and Jobs Through Federal Sustainability.''
(December 8, 2021) requires agencies to ``design new construction and
modernization projects greater than 25,000 gross square feet to be net-
zero emissions by 2030''. This part of the Executive Order effectively
reduces the impact of this rule to apply only to new construction and
major renovation projects that fall above the cost threshold but are
also below 25,000 gross square feet. Taking this into account for the
year 2030 and beyond, the estimated new Federal commercial and multi-
family high-rise residential building major renovation construction
volume per year will be 0.4 million square feet per year with a
distribution of building types as shown in Table IV.1 and Table IV.2 of
this document. These tables also show the prototype buildings
incorporated into computer simulations that are used to estimate energy
use in each building type. DOE derived these prototype buildings from
16 building types in 17 climate zones \15\ using its Commercial
Prototype Building models.\16\ Of the 16 prototype buildings, DOE
developed costs for 6 prototype buildings to determine the cost
effectiveness of ASHRAE Standard 90.1-2016 and ASHRAE Standard 90.1-
2019. DOE then extracted the cost-effectiveness information for those
prototype buildings and weighted those values as appropriate to obtain
an average cost effectiveness value for building types found in the
Federal commercial sector.
---------------------------------------------------------------------------
\12\ See DOE's analysis of the cost savings of the 2016 and 2019
ASHRAE 90.1 Standards at www.energycodes.gov/sites/default/files/2020-07/90.1-2016_National_Cost-Effectiveness.pdf and
www.energycodes.gov/sites/default/files/2021-07/90.1-2019_National_Cost-Effectiveness.pdf, respectively.
\13\ The Environmental Assessment (EA) (DOE/EA-2165) is
entitled, ``Environmental Assessment for Final Rule, 10 CFR part
433, `Energy Efficiency Standards for New Federal Commercial and
Multi-Family High-Rise Residential Buildings' Baseline Standards
Update''. The EA may be found in the docket for this proposed
rulemaking and at www.energy.gov/node/472482.
\14\ See www.realpropertyprofile.gov/FRPPMS/FRPP_Login.
\15\ Briggs, R.S., R.G. Lucas, and Z.T. Taylor. 2003. ``Climate
classification for building energy codes and standards: Part 1--
Development Process.'' ASHRAE Transactions 109(1): 109:121. American
Society of Heating, Refrigerating and Air-Conditioning Engineers.
Atlanta, Georgia.
\16\ DOE's prototype buildings are described at
www.energycodes.gov/prototype-building-models.
Table IV.1--New Federal Commercial and High-Rise Multi-Family Construction Volume by Building Type for Buildings
Constructed in Years 2025-2029
----------------------------------------------------------------------------------------------------------------
Fraction of
Federal
Building type construction Assumed BECP prototypes Assumed BECP prototypes
volume (by floor for energy savings for cost effectiveness
area) (%)
----------------------------------------------------------------------------------------------------------------
Office................................. 17.77 Small Office, Medium Small Office, Large
Office, Large Office. Office.
Dormitories and Barracks............... 14.57 Small Hotel, Mid-rise Small Hotel, Mid-rise
Apartment, High-rise Apartment.
Apartment.
School................................. 15.65 Secondary School......... Primary School.
Service................................ 15.16 Stand-alone Retail, Non- Stand-alone Retail.
refrigerated Warehouse.
Other Institutional Uses............... 5.76 None *................... None.
Hospital............................... 7.80 Hospital................. Small Office, Large
Office.
Warehouses............................. 2.95 Non-Refrigerated None.
Warehouse.
Laboratories........................... 4.24 Medium Office, Hospital.. Small Office, Large
Office.
All Other.............................. 2.74 None..................... None.
Outpatient Healthcare Facility......... 5.00 Outpatient Healthcare.... Small Office.
Industrial............................. 1.63 None..................... None.
Child Care Center...................... 0.89 Primary School........... Primary School.
Communications Systems................. 1.42 None..................... None.
Prisons and Detention Centers.......... 0.18 None..................... None.
Family Housing......................... 1.06 Mid-rise Apartment....... Mid-rise Apartment.
Navigation and Traffic Aids............ 0.53 None..................... None.
Land Port of Entry..................... 0.68 Non-refrigerated None.
Warehouse.
Border/Inspection Station.............. 0.64 Small Office, Non- Small Office.
refrigerated Warehouse.
Facility Security...................... 0.25 Small Office............. Small Office.
Data Centers........................... 0.34 None..................... None.
Museum................................. 0.74 None..................... None.
Comfort Station/Restrooms.............. 0.01 Non-refrigerated None.
Warehouse.
Public Facing Facility................. 0.02 Stand-alone Retail....... Stand-alone Retail.
Aviation Security Related.............. 0.00 Small Office............. Small Office.
Post Office............................ 0.00 Stand-alone Retail....... Stand-alone Retail.
----------------------------------------------------------------------------------------------------------------
* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building
types, with other institutional uses, warehouses, and all other being the largest Federal building types with
no reliable mapping. As described in this section, DOE considered energy savings and costs for these unmapped
Federal building types to be equivalent to the weighted energy savings and cost for the mapped Federal
building types.
[[Page 78400]]
Table IV.2--New Federal Commercial and High-Rise Multi-Family Construction Volume by Building Type for Buildings
Constructed in Years 2030-2054
----------------------------------------------------------------------------------------------------------------
Fraction of
Federal
Building type construction Assumed BECP prototypes Assumed BECP prototypes
volume (by floor for energy savings for cost effectiveness
area) (%)
----------------------------------------------------------------------------------------------------------------
Office................................. 14.24 Small Office, Medium Small Office, Large
Office. Office.
Dormitories and Barracks............... 4.02 Small Hotel, Mid-rise Small Hotel, Mid-rise
Apartment, High-rise Apartment.
Apartment.
School................................. 10.88 Secondary School......... Primary School.
Service................................ 18.34 Stand-alone Retail, Non- Stand-alone Retail.
refrigerated Warehouse.
Other Institutional Uses............... 12.63 None *................... None.
Hospital............................... 2.97 Hospital................. Small Office, Large
Office.
Warehouses............................. 6.88 Non-Refrigerated None.
Warehouse.
Laboratories........................... 4.37 Medium Office, Hospital.. Small Office, Large
Office.
All Other.............................. 5.58 None..................... None.
Outpatient Healthcare Facility......... 7.66 Outpatient Healthcare.... Small Office.
Industrial............................. 2.05 None..................... None.
Child Care Center...................... 2.67 Primary School........... Primary School.
Communications Systems................. 0.87 None..................... None.
Prisons and Detention Centers.......... 0.26 None..................... None.
Family Housing......................... 1.49 Mid-rise Apartment....... Mid-rise Apartment.
Navigation and Traffic Aids............ 1.95 None..................... None.
Land Port of Entry..................... 0.99 Non-refrigerated None.
Warehouse.
Border/Inspection Station.............. 0.36 Small Office, Non- Small Office.
refrigerated Warehouse.
Facility Security...................... 1.36 Small Office............. Small Office.
Data Centers........................... 0.19 None..................... None.
Museum................................. 0.10 None..................... None.
Comfort Station/Restrooms.............. 0.03 Non-refrigerated None.
Warehouse.
Public Facing Facility................. 0.09 Stand-alone Retail....... Stand-alone Retail.
Aviation Security Related.............. 0.00 Small Office............. Small Office.
Post Office............................ 0.00 Stand-alone Retail....... Stand-alone Retail.
----------------------------------------------------------------------------------------------------------------
* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building
types, with other institutional uses, warehouses, and all other being the largest Federal building types with
no reliable mapping. As described in this section, DOE considered energy savings and costs for these unmapped
Federal building types to be equivalent to the weighted energy savings and cost for the mapped Federal
building types.
DOE has determined incremental construction first cost information
for the building types and climate zones analyzed for buildings
compliant with this proposed rule (``Clean Energy Rule Compliant''
buildings) versus ASHRAE Standard 90.1-2019 (see Table IV.3).\17\
---------------------------------------------------------------------------
\17\ Note that the values in Table IV.3 have been adjusted to
reflect 2021$ from the table that appears in DOE's determination of
energy savings for Standard 90.1-2016, which were in 2018$. This
adjustment was made using the GDP deflator value to correct for
inflation between 2018 and 2021. Organization for Economic Co-
operation and Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank of St. Louis;
fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17,
2021. These values have also been adjusted to reflect the same
underlying economic assumptions as the 2019 version, and sales tax
has also been removed.
Table IV.3--Incremental Construction First Cost (2021$) for ASHRAE Standard 90.1-2019 vs. Fossil Fuel Compliant
Building Design
----------------------------------------------------------------------------------------------------------------
ASHRAE climate zone *
Prototype Value ----------------------------------------------------------------
2A 3A 3B 4A 5A
----------------------------------------------------------------------------------------------------------------
Small Office................. First Cost...... $673 $584 $515 $1,666 $641
$/ft\2\......... 0.12 0.11 0.09 0.30 0.12
Large Office................. First Cost...... 261,781 268,194 196,408 354,808 223,553
$/ft\2\......... 0.52 0.54 0.39 0.71 0.45
Stand-alone Retail........... First Cost...... 19,608 20,240 19,740 21,563 19,363
$/ft\2\......... 0.79 0.82 0.80 0.87 0.78
Primary School............... First Cost...... (126,946) (121,994) (116,139) (94,722) (122,894)
$/ft\2\......... (1.72) (1.65) (1.57) (1.28) (1.66)
Small Hotel.................. First Cost...... (104,866) (104,624) (104,396) (101,194) (103,044)
$/ft\2\......... (2.43) (2.42) (2.42) (2.34) (2.38)
Mid-rise Apartment........... First Cost...... (18,343) (17,490) (18,113) (12,445) (25,126)
$/ft\2\......... (0.54) (0.52) (0.54) (0.37) (0.74)
----------------------------------------------------------------------------------------------------------------
* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to
reduced HVAC capital cost and reduction of venting required for onsite combustion.
[[Page 78401]]
DOE used data from Table IV.3 to calculate preliminary values for
overall incremental first cost of construction for Federal commercial
and high-rise, multi-family residential buildings. DOE calculated the
incremental first cost of the Federal building types based on the DOE
cost prototypes shown in the far-right column of Table IV.1 of this
document. DOE then calculated the weighted average incremental cost for
mapped Federal building types based on their corresponding BECP
prototypes, which represent an estimated 79.3 percent of new Federal
construction. This weighted incremental cost was assigned to un-mapped
Federal building types, and a total weighted incremental cost was
calculated by multiplying the incremental cost for each Federal
building type by the fraction of Federal construction shown in Table
IV.1.
The national incremental first cost for building types was
developed by multiplying the average (across climate zones) incremental
first cost of the prototypes (determined from the DOE State building
energy codes program ASHRAE Standard 90.1 cost-effectiveness analysis)
by the fraction of the Federal sector construction volume shown in
Table IV.1, and then multiplying that by the total estimate of Federal
new construction floorspace.\18\ DOE estimates that total first cost
outlays for new Federal buildings will be less under Clean Energy Rule
compliant designs than ASHRAE Standard 90.1-2019, primarily due to
lower HVAC equipment costs for some building types (See Table IV.3).
The resulting total incremental first cost estimate is a savings of
$8.62 million per year. The average first cost decrease is $1.86 per
square foot. These first cost decreases are a result of the lower
capital costs of the assumed electric equipment types as dictated in
the ASHRAE and IECC energy codes (as mandated in 10 CFR part 433 and 10
CFR part 435 and are the baseline for this modified building efficiency
standard). Minimally compliant electric equipment was assumed in the
proposed case as hitting the 30% better than baseline performance goal
as generally required by regulation and does include a cost
effectiveness caveat that can reduce the goal down to minimal
compliance. As can be seen in Table IV.4, most building types switch
their space heating systems from a fossil fuel burning system over to
an electric resistance-based system. DOE seeks comment on the
efficiency of the electric equipment used in its analyses.
---------------------------------------------------------------------------
\18\ For the Federal office building, the small and large office
prototype first costs were averaged. For the Federal education
building, the primary school prototype first cost was used. For the
Federal dormitories/barracks building type, the small hotel and mid-
rise apartment prototype first costs were averaged.
Table IV.4--Breakdown of Proposed Heating System by Building Protype
--------------------------------------------------------------------------------------------------------------------------------------------------------
Yearly Yearly
constructed constructed Baseline gas Proposed electric unit
Building prototype SF--Post 2030 SF--Pre 2030 unit efficiency Space heat notes
(%) (%) efficiency
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Office........................... 12.8 14.8 0.81 99% Electric Boilers...... Convert using AFUE for gas furnace
and AFUE Estimate for Electric
Furnace.
Medium Office.......................... 2.6 5.5 0.79 99% Electric Furnaces..... Convert using pre 1/1/2023 Et
estimated Et for Furnaces assuming
0.75% casing loss.
Large Office........................... 0.0 2.3 0.82 99% Electric Boilers...... Convert using Et Estimate for
boilers.
Stand-Alone Retail..................... 13.2 8.8 0.79 1.76 COP RTU Heat Pump.... Convert using national weight heat
pump efficiency from office
analysis.
Primary School......................... 3.8 1.0 0.81 99% \1/4\ Furnaces, \3/4\ \1/4\ Furnaces, \3/4\ boilers.
boilers. Convert both to electric
equivalents.
Secondary School....................... 15.5 18.1 0.82 99% Electric Boilers...... Convert using Et Estimate for
boilers.
Outpatient Health Care................. 10.9 5.8 0.82 99% Electric Boilers...... Convert using Et Estimate for
boilers.
Hospital............................... 8.9 12.7 0.82 99% Electric Boilers...... Convert using Et Estimate for
boilers.
Small Hotel............................ 0.4 1.2 0.81 99% Electric Furnaces..... Convert using AFUE for Gas and AFUE
Estimate for Electric.
Warehouse.............................. 24.4 13.1 0.79 99% Electric Furnaces..... Note Model uses a 0.8 gas AFUE for
office space, but 0.7925 for Fine
storage and unit heater.
Mid-Rise Apartment..................... 4.7 8.7 0.81 2.4 COP Residential Heat Convert using AFUE Estimate to
Pump. residential HSPF.
High-Rise Apartment.................... 2.7 8.2 0.82 99% Electric Boilers...... Convert using Et Estimate for
boilers.
--------------------------------------------------------------------------------------------------------------------------------------------------------
An estimated 17.7 percent of the projects would utilize heat pumps
in their proposed ``all electric'' case (those that map to Stand Alone
Retail and Mid-Rise Apartment prototype models) with assumed efficiency
performance metrics as noted. Service hot water systems (when not
already specified as an electric system per 10 CFR parts 433 and 435
requirement) are similarly assumed to be minimally compliant electric
resistance systems with 99 percent efficiencies. Cooking systems where
present are assumed to switch from 40 percent efficient gas systems to
70 percent standard efficiency electric systems.
It should be noted that in all cases higher efficiency electric
equipment is available on the market, but the statutory authority of
this rule is limited to total building reduction targets and does not
specify specific equipment types or efficiency levels. An agency is
free to design a project per their own site, cost, and usage specific
needs, while complying with the applicable efficiency targets. As such,
the analysis presented in this SNOPR intends to capture the base-level
compliance cases only. An agency is free and encouraged to select
higher efficiency equipment (such as even higher efficiency heat pumps
and/or more widespread adoption) as project details accommodate. DOE
encourages the higher efficiency equipment to be carefully considered
by agencies as it can often provide projects with a lifecycle cost
effective solution that saves even more energy and emissions (albeit
usually with higher up-front capital costs) than presented for base
compliance with this rule.
DOE is seeking comment with regard to heat pump pricing,
availability, efficiency levels, and weather incentivizing higher
performing equipment is likely to increase utilization amongst federal
facilities.
DOE also analyzed the relative impact of the final rule on the
first cost of new constructed Federal buildings as a
[[Page 78402]]
percentage of the overall annual cost of newly constructed Federal
commercial and high-rise buildings. In order to estimate the total cost
of construction for new Federal buildings, DOE obtained estimated
construction costs for new Federal commercial and high-rise multifamily
buildings were obtained from RS Means (2020) \19\ for the six building
types analyzed in DOE's cost-effectiveness report. These new
construction costs were weighted by the percent of Federal floorspace
to develop an average cost of a new Federal building of $198 per square
foot, as shown in Table IV.5. This average construction cost may be
multiplied by the overall total of 19.54 million square feet of new
Federal construction per year used in this rulemaking to estimate the
annual total cost of all new Federal commercial and high-rise multi-
family construction of $3.86 billion. As previously noted, first cost
savings associated with this rulemaking are estimated at $8.62 million
per year, indicating a potential cost reduction in new Federal
construction costs of 0.223 percent ($8.62 million divided by $3.86
billion).
---------------------------------------------------------------------------
\19\ RS Means. 2020. RS Means Building Construction Cost Data,
78th Ed. Construction Publishers & Consultants. Norwell, MA.
Table IV.5--First Cost of Typical New Federal Building in $/ft\2\
----------------------------------------------------------------------------------------------------------------
Weighted
Federal building type Weight (%) First cost * cost
----------------------------------------------------------------------------------------------------------------
Office............................................................. 20.74 $210 $43.51
Barracks and Dormitories........................................... 14.85 217 32.18
School............................................................. 14.33 225 32.25
Service............................................................ 13.31 116 15.44
Hospital........................................................... 5.57 200 11.14
Laboratories....................................................... 4.37 200 8.73
Outpatient Healthcare Facility..................................... 3.35 220 7.38
Child Care Center.................................................. 1.18 225 2.67
Family Housing >3 Stories.......................................... 0.68 218 1.48
Border/Inspection Station.......................................... 0.49 220 1.07
Facility Security.................................................. 0.31 220 0.69
Aviation Security Related.......................................... 0.01 220 0.02
Public Facing Facility............................................. 0.05 116 0.06
Post Office........................................................ 0.01 116 0.01
Remaining Federal Stock............................................ 20.75 198 41.00
Federal Average.................................................... 100.00 198 197.62
----------------------------------------------------------------------------------------------------------------
* All building first cost data from RS Means 2020.
DOE determined that the total incremental first cost estimate for
Federal buildings (as mapped to the prototype buildings in Table IV.1)
is a savings of $139.4 million (at a 3 percent discount rate) and a
cost of $85.5 million (based on a 7 percent discount rate), with an
average first cost decrease of $1.0 per square foot (at a 3 percent
discount rate) and $0.61 per square foot (at a 3 percent discount
rate).
For annualized energy cost savings, DOE used a similar approach to
that used for incremental first cost. That is, DOE developed the
national annualized energy cost savings \20\ for building types by
multiplying the average (across climate zones) energy cost savings
(determined from the DOE ASHRAE Standard 90.1 cost-effectiveness
analysis) by the fraction of the Federal sector construction volume
shown in Table IV.1, and then multiplying that by the total estimate of
Federal new construction floorspace.\21\ Table IV.6 \22\ shows the
annual energy cost savings by prototype buildings for a Clean Energy
Rule compliant building compared to ASHRAE Standard 90.1-2019. There
are increases in energy costs across the board, this is because despite
the increases in equipment efficiency and overall site energy savings
the difference between the cost of fossil fuels (primarily natural gas)
and purchased electricity at a national level are too high for the
improvements to overcome. The EIA AEO 2021 energy outlook rate
projections indicate that per the same amount of site energy consumed,
electricity is about 4.3x more expensive than natural gas, this number
gradually reduces over time per this projection down to 3.2x by the
year 2050.
---------------------------------------------------------------------------
\20\ The energy costs used were the national average energy
costs used by ASHRAE in the development of Standard 90.1-2019. To
quote the cost-effectiveness analysis report ``Energy rates used to
calculate the energy costs from the modeled energy usage were $0.98/
therm for fossil fuel and $0.1063/kWh for electricity. These rates
were used for the 90.1-2019 energy analysis and derived from the EIA
data. These were the values approved by the SSPC 90.1 for cost-
effectiveness for the evaluation of individual addenda during the
development of 90.1-2019.''
\21\ For the Federal office building, the small and large office
prototype LCCs were weighted by estimated fraction of small and
large offices observed in the FRPP MS database over the past 10
years of construction. For the Federal education building, the
primary school prototype LCC was used. For the Federal dorm/barracks
building type, the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
\22\ Note that the values in Table IV.5 have been adjusted to
reflect 2020$ from the table that appears in DOE's determination of
energy savings for Standard 90.1-2016, which were in 2018$. This
adjustment was made using the GDP deflator value to correct for
inflation between 2018 and 2020. Organization for Economic Co-
operation and Development, GDP Implicit Price Deflator in United
States, retrieved from FRED, Federal Reserve Bank of St. Louis;
fred.stlouisfed.org/series/USAGDPDEFAISMEI, Updated February 17,
2021. These values have also been adjusted to reflect the same
underlying economic assumptions as the 2019 version.
---------------------------------------------------------------------------
As was done for the incremental cost analysis, the 2019 energy cost
savings analysis was adjusted to use the same underlying economic
assumptions as the Clean Energy Rule Compliant version, including fuel
prices, fuel price escalations, labor and material costs, and the
removal of sales tax. The resulting total annualized energy cost
impacts for the Clean Energy Rule affected buildings' 14.7 million
square feet of annual construction for years 2025-2029 and 2.6 million
square feet of annual construction for years 2030-2054 was estimated to
be an additional cost of $10.6 million/yr (at a 3 percent discount
rate) and $8.3 million/yr (at a 7 percent discount rate). The
annualized energy cost impacts were estimated to be an additional $2.28
per square foot (at a 3 percent discount rate) and -1.78 per square
foot (at a 3 percent discount rate). Note the annual energy cost
impacts are for one year of Federal commercial and high-rise multi-
family residential construction and that those
[[Page 78403]]
impacts accumulate over the evaluation period.
Table IV.6--Annualized Energy Costs (2021$) for ASHRAE Standard 90.1-2019 vs. Fossil Fuel Compliant Building
Design
----------------------------------------------------------------------------------------------------------------
Annualized energy cost savings Annualized energy cost savings
Total (M$2021) intensity (M$2021/SF)
Building prototype prototype -------------------------------------------------------------------
usage (%) 3% Discount 7% Discount 3% Discount 7% Discount
rate rate rate rate
----------------------------------------------------------------------------------------------------------------
Small Office................... 14.78 ($1.57) ($1.23) ($0.34) ($0.26)
Medium Office.................. 5.53 (0.59) (0.46) (0.13) (0.10)
Large Office................... 2.26 (0.24) (0.19) (0.05) (0.04)
Stand-Alone Retail............. 8.76 (0.93) (0.73) (0.20) (0.16)
Strip Mall..................... 0.00 0.00 0.00 0.00 0.00
Primary School................. 1.02 (0.11) (0.08) (0.02) (0.02)
Secondary School............... 18.06 (1.91) (1.50) (0.41) (0.32)
Outpatient Health Care......... 5.76 (0.61) (0.48) (0.13) (0.10)
Hospital....................... 12.68 (1.34) (1.05) (0.29) (0.23)
Small Hotel.................... 1.18 (0.12) (0.10) (0.03) (0.02)
Large Hotel.................... 0.00 0.00 0.00 0.00 0.00
Quick-service Restaurant....... 0.00 0.00 0.00 0.00 0.00
Full-service Restaurant........ 0.00 0.00 0.00 0.00 0.00
Mid-Rise Apartment............. 8.95 (0.95) (0.74) (0.20) (0.16)
High-Rise Apartment............ 7.90 (0.84) (0.66) (0.18) (0.14)
Non-Refrigerated Warehouse..... 13.12 (1.39) (1.09) (0.30) (0.23)
--------------------------------------------------------------------------------
Total...................... 100.00 (10.60) (8.30) (2.28) (1.78)
----------------------------------------------------------------------------------------------------------------
Note: Negative numbers represent an increase cost.
For LCC net savings, DOE used a similar approach to that used for
incremental first cost and first year energy cost savings. That is, DOE
developed the national annual LCC net savings \23\ for the entire rule
by multiplying the average (across climate zones) LCC net savings
(determined from the DOE ASHRAE Standard 90.1 cost-effectiveness
analysis) by the fraction of the Federal sector construction volume
shown in Table IV.1, and then multiplying that by the total estimate of
Federal new construction floorspace.\24\ Table IV.7 shows annual LCC
net savings by prototype buildings for the Clean Energy Rule Compliant
Case compared to ASHRAE Standard 90.1-2019. As was done for the
incremental cost analysis, the 2019 LCC analysis was adjusted to use
the same underlying economic assumptions as the Clean Energy Rule
Compliant Case, including fuel prices, fuel price escalations, labor
and material costs, and the removal of sales tax. The resulting total
LCC net savings for 14.7 million square feet of annual construction for
years 2025-2029 and 2.6 million square feet of annual construction for
years 2030-2054 was estimated to be a cost of $56.13 million (at a 3
percent discount rate) and a cost of $4.07 million (based on a 7
percent discount rate). The average LCC net impacts in year 1 was
estimated to be a cost of $12.09 million (at a 3 percent discount rate)
and a cost of $0.88 million (based on a 7 percent discount rate. Note
the annual LCC savings are for one year of Federal commercial and high-
rise multi-family residential construction and that those savings would
accumulate over the LCC evaluation period. For the purpose of this
analysis, DOE relied on a 30-year period.\25\
---------------------------------------------------------------------------
\23\ The energy costs used were the national average energy
costs used by ASHRAE in the development of Standard 90.1-2019. To
quote the cost-effectiveness analysis report ``Energy rates used to
calculate the energy costs from the modeled energy usage were $0.98/
therm for fossil fuel and $0.1063/kWh for electricity. These rates
were used for the 90.1-2019 energy analysis and derived from the EIA
data. These were the values approved by the SSPC 90.1 for cost-
effectiveness for the evaluation of individual addenda during the
development of 90.1-2019.''
\24\ For the Federal office building, the small and large office
prototype LCCs were weighted by estimated fraction of small and
large offices observed in the FRPP MS database over the past 10
years of construction. For the Federal education building, the
primary school prototype LCC was used. For the Federal dorm/barracks
building type, the small office, small hotel and mid-rise apartment
prototype LCCs were averaged.
\25\ Lavappa, P and J Kneifel. 2021. Energy Price Indices and
Discount Factors for Life-Cycle Cost Analysis-2021 Annual Supplement
to NIST Handbook 135.
Table IV.7--Annual Net Life-Cycle Cost (LCC) (2021$) for ASHRAE Standard 90.1-2019 vs. Fossil Fuel Compliant
Building Design
----------------------------------------------------------------------------------------------------------------
Cumulative LCC cost savings, Annualized LCC cost savings,
Total (M$2021) annualized (M$2021)
Building prototype prototype -------------------------------------------------------------------
usage (%) 3% Discount 7% Discount 3% Discount 7% Discount
rate rate rate rate
----------------------------------------------------------------------------------------------------------------
Small Office................... 14.78 ($8.30) ($0.60) ($0.45) ($0.13)
Medium Office.................. 5.53 (3.10) (0.23) (0.17) (0.05)
Large Office................... 2.26 (1.27) (0.09) (0.07) (0.02)
Stand-Alone Retail............. 8.76 (4.92) (0.36) (0.27) (0.08)
[[Page 78404]]
Strip Mall..................... 0.00 0.00 0.00 0.00 0.00
Primary School................. 1.02 (0.57) (0.04) (0.03) (0.01)
Secondary School............... 18.06 (10.13) (0.73) (0.55) (0.16)
Outpatient Health Care......... 5.76 (3.24) (0.23) (0.17) (0.05)
Hospital....................... 12.68 (7.12) (0.52) (0.38) (0.11)
Small Hotel.................... 1.18 (0.66) (0.05) (0.04) (0.01)
Large Hotel.................... 0.00 0.00 0.00 0.00 0.00
Quick-service Restaurant....... 0.00 0.00 0.00 0.00 0.00
Full-service Restaurant........ 0.00 0.00 0.00 0.00 0.00
Mid-Rise Apartment............. 8.95 (5.02) (0.36) (0.27) (0.08)
High-Rise Apartment............ 7.90 (4.43) (0.32) (0.24) (0.07)
Non-Refrigerated Warehouse..... 13.12 (7.37) (0.53) (0.40) (0.12)
--------------------------------------------------------------------------------
Total...................... 100.00 (56.13) (4.07) (0.45) (0.88)
----------------------------------------------------------------------------------------------------------------
Note: Negative numbers represent an increase cost or disbenefit.
DOE also conducted a net benefits and costs analysis using a 30-
year analysis period and an assumed building lifetime of 30 years. The
building lifetime assumption was made to correspond with availability
of underlying data from the cost-effectiveness analysis conducted by
DOE's State building energy codes program.
DOE calculated the net present value (``NPV'') of the change in
equipment cost and reduced operating cost associated with the
difference between the Clean Energy Rule compliant case and ASHRAE
90.1-2019. The NPV is the value in the present of a time-series of
costs and savings, equal to the present value of savings in operating
cost minus the present value of the increased total equipment cost.
DOE determined the total increased equipment cost for each year of
the analysis period (2024-2053) using the incremental construction cost
described previously. DOE determined the present value of operating
cost savings for each year from the beginning of the analysis period to
the year when all Federal buildings constructed by 2054 have been
retired, assuming a 30-year lifetime of the building.
The average annual operating cost includes the costs for energy,
repair, or replacement of building components (e.g., heating and
cooling equipment, lighting, and envelope measures), and maintenance of
the building. DOE determined the per-unit annual increase in operating
cost based on the differences in energy costs plus replacement and
maintenance cost savings, which were calculated in the underlying cost-
effectiveness analysis by DOE's State building energy codes program.
While DOE used the methodology and prices described above to calculate
first year energy cost savings and LCC net savings, for the NPV
calculations, DOE determined the per-unit annual savings in operating
cost by multiplying the per square foot annual electricity and natural
gas savings in energy consumption by the appropriate energy price from
EIA's AEO2021.\26\ DOE forecasted energy prices based on projected
average annual price changes in EIA's AEO2021 to develop the operating
cost savings through the analysis period.
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\26\ DOE--U.S. Department of Energy. 2022. Annual Energy Outlook
2022 with Projections to 2050. Washington, DC. Available at
www.eia.gov/outlooks/aeo/.
---------------------------------------------------------------------------
DOE uses national discount rates to calculate national NPV. DOE
estimated NPV using both a 3-percent and a 7-percent real discount
rate, in accordance with the Office of Management and Budget's guidance
to Federal agencies on the development of regulatory analysis,
particularly section E therein: Identifying and Measuring Benefits and
Costs.\27\ The NPV is the sum over time of the discounted net savings.
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\27\ Office of Management and Budget. OMB Circular A-4,
Regulatory Analysis. 2003. OMB: Washington, DC, September 17, 2003.
www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf.
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The present value of increased equipment costs is the annual total
cost increase in each year (the difference between The Clean Energy
Rule Compliant Case and ASHRAE 90.1-2019), discounted to the present,
and summed throughout the analysis period (2024 through 2053) plus 30-
year lifetime. Because new construction is held constant through the
analysis period, the installed cost is constant.
The present value of savings in operating cost is the annual
savings in operating cost (the difference between The Clean Energy Rule
Compliant Case and ASHRAE 90.1-2019), discounted to the present and
summed through the analysis period (2024 through 2053) plus 30-year
lifetime. Savings are decreases in operating cost associated with the
higher energy efficiency associated with buildings designed to the
Clean Energy Rule Compliant Case compared to ASHRAE 90.1-2019. Total
annual savings in operating cost are the savings per square foot
multiplied by the number of square feet that survive in a particular
year through the lifetime of the buildings constructed in the last year
of the analysis period.
B. Emissions Analysis
The emissions analysis consists of two components. The first
component estimates the effect of potential Federal building energy
standards on power sector and site (where applicable) combustion
emissions of CO2, NOX, SO2, and Hg.
The second component estimates the impacts of potential Federal
building energy standards on emissions of two additional greenhouse
gases, CH4 and N2O, as well as the changes to
emissions of other gases due to ``upstream'' activities in the fuel
production chain. These upstream activities comprise extraction,
processing, and transporting fuels to the site of combustion.
The analysis of electric power sector emissions of CO2,
NOX, SO2, and Hg uses emissions factors intended
to
[[Page 78405]]
represent the marginal impacts of the change in electricity consumption
associated with Federal building energy standards. The methodology is
based on results published for the AEO, including a set of side cases
that implement a variety of efficiency-related policies. The analysis
presented in this notice uses projections from AEO2022. Power sector
emissions of CH4 and N2O from fuel combustion are
estimated using Emission Factors for Greenhouse Gas Inventories
published by the Environmental Protection Agency (``EPA'').\28\
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\28\ Available at www.epa.gov/sites/production/files/2021-04/documents/emission-factors_apr2021.pdf (last accessed July 12,
2021).
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Until 2030, the on-site operation of construction subject to this
proposed rule allows combustion of fossil fuels and results in
emissions of CO2, NOX, SO2,
CH4, and N2O where these products are used. Site
emissions of these gases were estimated using Emission Factors for
Greenhouse Gas Inventories and, for NOX and SO2
emissions intensity factors from an EPA publication.\29\
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\29\ U.S. Environmental Protection Agency. External Combustion
Sources. In Compilation of Air Pollutant Emission Factors. AP-42.
Fifth Edition. Volume I: Stationary Point and Area Sources. Chapter
1. Available at https://www.epa.gov/air-emissions-factors-and-quantification/ap-42-compilation-air-emissions-factors (last
accessed April 15, 2022).
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FFC upstream emissions, which include emissions from fuel
combustion during extraction, processing, and transportation of fuels,
and ``fugitive'' emissions (direct leakage to the atmosphere) of
CH4 and CO2, are estimated based on the
methodology described in chapter 1 of the NOPR TSD.
The emissions intensity factors are expressed in terms of physical
units per MWh or MMBtu of site energy savings. For power sector
emissions, specific emissions intensity factors are calculated by
sector and end use. Total emissions changes are estimated using the
energy savings calculated in the national impact analysis with energy
savings derived from a load shifting modeling analysis of ASHRAE
Prototype models.
1. Air Quality Regulations Incorporated in DOE's Analysis
DOE's no-new-standards case for the electric power sector reflects
the AEO, which incorporates the projected impacts of existing air
quality regulations on emissions. AEO2022 generally represents current
legislation and environmental regulations, including recent government
actions, that were in place at the time of preparation of AEO2022,
including the emissions control programs discussed in the following
paragraphs.\30\
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\30\ For further information, see the Assumptions to AEO2022
report that sets forth the major assumptions used to generate the
projections in the Annual Energy Outlook. Available at www.eia.gov/outlooks/aeo/assumptions/ (last accessed April 15, 2022).
---------------------------------------------------------------------------
SO2 emissions from affected electric generating units
(``EGUs'') are subject to nationwide and regional emissions cap-and-
trade programs. Title IV of the Clean Air Act sets an annual emissions
cap on SO2 for affected EGUs in the 48 contiguous States and
the District of Columbia (D.C.). (42 U.S.C. 7651 et seq.)
SO2 emissions from numerous States in the eastern half of
the United States are also limited under the Cross-State Air Pollution
Rule (``CSAPR''). 76 FR 48208 (Aug. 8, 2011). CSAPR requires these
States to reduce certain emissions, including annual SO2
emissions, and went into effect as of January 1, 2015.\31\ AEO2022
incorporates implementation of CSAPR, including the update to the CSAPR
ozone season program emission budgets and target dates issued in 2016.
81 FR 74504 (Oct. 26, 2016).\32\ Compliance with CSAPR is flexible
among EGUs and is enforced through the use of tradable emissions
allowances. Under existing EPA regulations, for states subject to
SO2 emissions limits under CSAPR, excess SO2
emissions allowances resulting from the lower electricity demand caused
by the adoption of an efficiency standard could be used to permit
offsetting increases in SO2 emissions by another regulated
EGU.
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\31\ CSAPR requires states to address annual emissions of
SO2 and NOX, precursors to the formation of
fine particulate matter (PM2.5) pollution, in order to
address the interstate transport of pollution with respect to the
1997 and 2006 PM2.5 National Ambient Air Quality
Standards (``NAAQS''). CSAPR also requires certain states to address
the ozone season (May-September) emissions of NOX, a
precursor to the formation of ozone pollution, in order to address
the interstate transport of ozone pollution with respect to the 1997
ozone NAAQS. 76 FR 48208 (Aug. 8, 2011). EPA subsequently issued a
supplemental rule that included an additional five states in the
CSAPR ozone season program; 76 FR 80760 (Dec. 27, 2011)
(Supplemental Rule), and EPA issued the CSAPR Update for the 2008
ozone NAAQS. 81 FR 74504 (Oct. 26, 2016).
\32\ In Sept. 2019, the D.C. Court of Appeals remanded the 2016
CSAPR Update to EPA. In April 2021, EPA finalized the 2021 CSAPR
Update which resolved the interstate transport obligations of 21
states for the 2008 ozone NAAQS. 86 FR 23054 (April 30, 2021); see
also, 86 FR 29948 (June 4, 2021) (correction to preamble). The 2021
CSAPR Update became effective on June 29, 2021. The release of AEO
2021 in February 2021 predated the 2021 CSAPR Update.
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However, beginning in 2016, SO2 emissions began to fall
as a result of the Mercury and Air Toxics Standards (``MATS'') for
power plants. 77 FR 9304 (Feb. 16, 2012). In the MATS final rule, EPA
established a standard for hydrogen chloride as a surrogate for acid
gas hazardous air pollutants (``HAP''), and also established a standard
for SO2 (a non-HAP acid gas) as an alternative equivalent
surrogate standard for acid gas HAP. The same controls are used to
reduce HAP and non-HAP acid gas; thus, SO2 emissions are
being reduced as a result of the control technologies installed on
coal-fired power plants to comply with the MATS requirements for acid
gas. In order to continue operating, coal power plants must have either
flue gas desulfurization or dry sorbent injection systems installed.
Both technologies, which are used to reduce acid gas emissions, also
reduce SO2 emissions. Because of the emissions reductions
under the MATS, it is unlikely that excess SO2 emissions
allowances resulting from the lower electricity demand would be needed
or used to permit offsetting increases in SO2 emissions by
another regulated EGU.
CSAPR also established limits on NOX emissions for
numerous States in the eastern half of the United States. Impacts from
this Clean Energy Rule would have little effect on NOX
emissions in those States covered by CSAPR emissions limits if excess
NOX emissions allowances resulting from the lower
electricity demand could be used to permit offsetting increases in
NOX emissions from other EGUs. In such case, NOx emissions
would remain near the limit even if electricity generation goes down. A
different case could possibly result, depending on the configuration of
the power sector in the different regions and the need for allowances,
such that NOX emissions might not remain at the limit in the
case of lower electricity demand. In this case, Federal building
standards might reduce NOX emissions in covered States.
Despite this possibility, DOE has chosen to be conservative in its
analysis and has maintained the assumption that standards will not
reduce NOX emissions in States covered by CSAPR. Federal
building standards would be expected to reduce NOX emissions
in the States not covered by CSAPR.
DOE estimated mercury emissions reduction using emissions factors
based on AEO2022, which incorporates the MATS.
C. Monetization of Emissions Changes
As part of the development of this rule, for the purpose of
complying with the requirements of Executive Order 12866, DOE
considered the estimated monetary climate and health benefits and
disbenefits from the changes in
[[Page 78406]]
emissions of CO2, CH4, N2O,
NOX, and SO2 that are expected to result from
this rule. DOE considered the emissions changes expected to result over
the lifetime of buildings constructed in the analysis period. This
section summarizes the basis for the values used for monetizing the
emissions changes and presents the values considered in this rule.
On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-
30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of
the Fifth Circuit's order, the preliminary injunction is no longer in
effect, pending resolution of the federal government's appeal of that
injunction or a further court order. Among other things, the
preliminary injunction enjoined the defendants in that case from
``adopting, employing, treating as binding, or relying upon'' the
interim estimates of the social cost of greenhouse gases--which were
issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits and
disbenefits of changing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach prior
to the injunction and present monetized benefits and disbenefits where
appropriate and permissible under law.
1. Monetization of Greenhouse Gas Emissions
For the purpose of complying with the requirements of Executive
Order 12866, DOE estimates the monetized benefits and disbenefits of
the changes in emissions of CO2, CH4, and
N2O by using a measure of the social cost (``SC'') of each
pollutant (e.g., SC-CO2). These estimates represent the
monetary value of the net harm to society associated with a marginal
increase in emissions of these pollutants in a given year, or the
benefit of avoiding that increase. These estimates are intended to
include (but are not limited to) climate-change-related changes in net
agricultural productivity, human health, property damages from
increased flood risk, disruption of energy systems, risk of conflict,
environmental migration, and the value of ecosystem services. DOE
exercises its own judgment in presenting monetized climate benefits and
disbenefits as recommended by applicable Executive orders and guidance,
and DOE would reach the same conclusion presented in this notice in the
absence of the social cost of greenhouse gases, including the February
2021 Interim Estimates presented by the Interagency Working Group on
the Social Cost of Greenhouse Gases.
DOE estimated the climate benefits and disbenefits of
CO2, CH4, and N2O changes (i.e., SC-
GHGs) using the estimates presented in the Technical Support Document:
Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates
under Executive Order 13990 published in February 2021 by the
Interagency Working Group on the Social Cost of Greenhouse Gases (IWG)
(IWG, 2021).\33\ The SC-GHGs is the theoretically appropriate value to
use in conducting benefit-cost analyses of policies that affect
CO2, N2O and CH4 emissions. As a
member of the IWG involved in the development of the February 2021 SC-
GHG TSD, the DOE agrees that the interim SC-GHG estimates represent the
most appropriate estimate of the SC-GHG until revised estimates have
been developed reflecting the latest, peer-reviewed science.
---------------------------------------------------------------------------
\33\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at: www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf
(last accessed March 17, 2021).
---------------------------------------------------------------------------
The SC-GHGs estimates presented here were developed over many
years, using transparent process, peer-reviewed methodologies, the best
science available at the time of that process, and with input from the
public. Specifically, in 2009, an interagency working group (``IWG'')
that included the DOE and other executive branch agencies and offices
was established to ensure that agencies had access to the best
available information when quantifying the benefits of reducing
CO2 emissions in benefit-cost analyses. The IWG published
estimates of the social cost of carbon (``SC-CO2'') in 2010
that were developed from an ensemble of three widely cited integrated
assessment models (``IAMs'') that estimate climate damages using highly
aggregated representations of climate processes and the global economy
combined into a single modeling framework. The three IAMs were run
using a common set of input assumptions in each model for future
population, economic, and CO2 emissions growth, as well as
equilibrium climate sensitivity (``ECS'')--a measure of the globally
averaged temperature response to increased atmospheric CO2
concentrations. These estimates were updated in 2013 based on new
versions of each IAM. In August 2016 the IWG published estimates of the
social cost of methane (``SC-CH4'') and nitrous oxide (``SC-
N2O'') using methodologies that are consistent with the
methodology underlying the SC-CO2 estimates. The modeling
approach that extends the IWG SC-CO2 methodology to non-
CO2 GHGs has undergone multiple stages of peer review. The
SC-CH4 and SC-N2O estimates were developed by
Marten et al. (2015) and underwent a standard double-blind peer review
process prior to journal publication.
In 2015, as part of the response to public comments received to a
2013 solicitation for comments on the SC-CO2 estimates, the
IWG announced a National Academies of Sciences, Engineering, and
Medicine review of the SC-CO2 estimates to offer advice on
how to approach future updates to ensure that the estimates continue to
reflect the best available science and methodologies. In January 2017,
the National Academies released their final report, Valuing Climate
Damages: Updating Estimation of the Social Cost of Carbon Dioxide, and
recommended specific criteria for future updates to the SC-
CO2 estimates, a modeling framework to satisfy the specified
criteria, and both near-term updates and longer-term research needs
pertaining to various components of the estimation process (National
Academies, 2017).\34\ Shortly thereafter, in March 2017, President
Trump issued Executive Order 13783, which disbanded the IWG, withdrew
the previous TSDs, and directed agencies to ensure SC-CO2
estimates used in regulatory analyses are consistent with the guidance
contained in OMB's Circular A-4, ``including with respect to the
consideration of domestic versus international impacts and the
consideration of appropriate discount rates'' (E.O. 13783, Section
5(c)). Benefit-cost analyses following E.O. 13783 used SC-GHG estimates
that attempted to focus on the U.S.-specific share of climate change
damages as estimated by the models (and so did not reflect many
pathways by which physical impacts outside the United States affect the
welfare of U.S. citizens and residents) and were calculated using two
default discount rates recommended by Circular A-4, 3
[[Page 78407]]
percent and 7 percent.\35\All other methodological decisions and model
versions used in SC-GHG calculations remained the same as those used by
the IWG in 2010 and 2013, respectively.
---------------------------------------------------------------------------
\34\ See National Academies of Sciences, Engineering, and
Medicine. 2017. Valuing Climate Damages: Updating Estimation of the
Social Cost of Carbon Dioxide. Washington, DC: The National
Academies Press. doi.org/10.17226/24651.
\35\ DOE regulatory analyses under E.O. 13783 included
sensitivity analyses based on global SC-GHG values and using a lower
discount rate of 2.5%. OMB Circular A-4 (2003) recognizes that
special considerations arise when applying discount rates if
intergenerational effects are important. In the IWG's 2015 Response
to Comments, OMB--as a co-chair of the IWG--made clear that
``Circular A-4 is a living document,'' that ``the use of 7 percent
is not considered appropriate for intergenerational discounting,''
and that ``[t]here is wide support for this view in the academic
literature, and it is recognized in Circular A-4 itself.'' OMB, as
part of the IWG, similarly repeatedly confirmed that ``a focus on
global SCC estimates in [regulatory impact analyses] is
appropriate'' (IWG 2015).
---------------------------------------------------------------------------
On January 20, 2021, President Biden issued Executive Order 13990,
which re-established the IWG and directed it to develop updated
estimates of the social cost of carbon and other greenhouse gases that
reflect the best available science and the recommendations of the
National Academies (2017). The IWG was tasked with first reviewing the
SC-GHG estimates currently used in Federal analyses and publishing
interim estimates within 30 days of the E.O. that reflect the full
impact of GHG emissions, including by taking global damages into
account.
As noted previously, DOE participated in the IWG but has also
independently evaluated the interim SC-GHG estimates published in the
February 2021 TSD and determined they are appropriate to use here to
estimate the climate benefits and disbenefits associated with this
proposed rule. DOE and other agencies intend to undertake a fuller
update of the SC-GHG estimates that takes into consideration the advice
of the National Academies (2017) and other recent scientific
literature. The DOE has also evaluated the supporting rationale of the
February 2021 TSD, including the studies and methodological issues
discussed therein, and concludes that it agrees with the rationale for
these estimates presented in the TSD and summarized below.
The February 2021 SC-GHG TSD provides a complete discussion of the
IWG's initial review conducted under E.O. 13990. In particular, the IWG
found that the SC-GHG estimates used under E.O. 13783 fail to reflect
the full impact of GHG emissions in multiple ways. First, the IWG found
that the SC-GHG estimates used under E.O. 13783 fail to fully capture
many climate impacts that affect the welfare of U.S. citizens and
residents, and those impacts are better reflected by global measures of
the SC-GHG. Examples of effects omitted from the E.O. 13783 estimates
include direct effects on U.S. citizens, assets, and investments
located abroad, supply chains, U.S. military assets and interests
abroad, and tourism, and spillover pathways such as economic and
political destabilization and global migration that can lead to adverse
impacts on U.S. national security, public health, and humanitarian
concerns. In addition, assessing the benefits of U.S. GHG mitigation
activities requires consideration of how those actions may affect
mitigation activities by other countries, as those international
mitigation actions will provide a benefit to U.S. citizens and
residents by mitigating climate impacts that affect U.S. citizens and
residents. A wide range of scientific and economic experts have
emphasized the issue of reciprocity as support for considering global
damages of GHG emissions. If the United States does not consider
impacts on other countries, it is difficult to convince other countries
to consider the impacts of their emissions on the United States. The
only way to achieve an efficient allocation of resources for emissions
reduction on a global basis--and so benefit the U.S. and its citizens--
is for all countries to base their policies on global estimates of
damages. As a member of the IWG involved in the development of the
February 2021 SC-GHG TSD, DOE agrees with this assessment and,
therefore, in this rule DOE centers attention on a global measure of
SC-GHG. This approach is the same as that taken in DOE regulatory
analyses from 2012 through 2016. A robust estimate of climate damages
to U.S. citizens and residents that accounts for the myriad of ways
that global climate change reduces the net welfare of U.S. populations
does not currently exist in the literature. As explained in the
February 2021 TSD, existing estimates are both incomplete and an
underestimate of total damages that accrue to the citizens and
residents of the U.S. because they do not fully capture the regional
interactions and spillovers discussed previously, nor do they include
all of the important physical, ecological, and economic impacts of
climate change recognized in the climate change literature. As noted in
the February 2021 SC-GHG TSD, the IWG will continue to review
developments in the literature, including more robust methodologies for
estimating a U.S.-specific SC-GHG value, and explore ways to better
inform the public of the full range of carbon impacts. As a member of
the IWG, DOE will continue to follow developments in the literature
pertaining to this issue.
Second, the IWG found that the use of the social rate of return on
capital (7 percent under current OMB Circular A-4 guidance) to discount
the future benefits and disbenefits of reducing GHG emissions
inappropriately underestimates the impacts of climate change for the
purposes of estimating the SC-GHG. Consistent with the findings of the
National Academies (2017) and the economic literature, the IWG
continued to conclude that the consumption rate of interest is the
theoretically appropriate discount rate in an intergenerational context
(IWG 2010, 2013, 2016a, 2016b),\36\ and recommended that discount rate
uncertainty and relevant aspects of intergenerational ethical
considerations be accounted for in selecting future discount rates.
---------------------------------------------------------------------------
\36\ Interagency Working Group on Social Cost of Carbon. Social
Cost of Carbon for Regulatory Impact Analysis under Executive Order
12866. 2010. United States Government. (Last accessed April 15,
2022.) www.epa.gov/sites/default/files/2016-12/documents/scc_tsd_2010.pdf; Interagency Working Group on Social Cost of
Carbon. Technical Update of the Social Cost of Carbon for Regulatory
Impact Analysis Under Executive Order 12866. 2013. (Last accessed
April 15, 2022.) www.federalregister.gov/documents/2013/11/26/2013-28242/technical-support-document-technical-update-of-the-social-cost-of-carbon-for-regulatory-impact; Interagency Working Group on
Social Cost of Greenhouse Gases, United States Government. Technical
Support Document: Technical Update on the Social Cost of Carbon for
Regulatory Impact Analysis-Under Executive Order 12866. August 2016.
(Last accessed January 18, 2022.) www.epa.gov/sites/default/files/2016-12/documents/sc_co2_tsd_august_2016.pdf; Interagency Working
Group on Social Cost of Greenhouse Gases, United States Government.
Addendum to Technical Support Document on Social Cost of Carbon for
Regulatory Impact Analysis under Executive Order 12866: Application
of the Methodology to Estimate the Social Cost of Methane and the
Social Cost of Nitrous Oxide. August 2016. (Last accessed January
18, 2022.) www.epa.gov/sites/default/files/2016-12/documents/addendum_to_sc-ghg_tsd_august_2016.pdf.
---------------------------------------------------------------------------
Furthermore, the damage estimates developed for use in the SC-GHG
are estimated in consumption-equivalent terms, and so an application of
OMB Circular A-4's guidance for regulatory analysis would then use the
consumption discount rate to calculate the SC-GHG. DOE agrees with this
assessment and will continue to follow developments in the literature
pertaining to this issue. DOE also notes that while OMB Circular A-4,
as published in 2003, recommends using 3% and 7% discount rates as
``default'' values, Circular A-4 also reminds agencies that ``different
regulations may call for different emphases in the analysis, depending
on the nature and complexity of the regulatory issues and the
sensitivity of the benefit and cost
[[Page 78408]]
estimates to the key assumptions.'' On discounting, Circular A-4
recognizes that ``special ethical considerations arise when comparing
benefits and costs across generations,'' and Circular A-4 acknowledges
that analyses may appropriately ``discount future costs and consumption
benefits . . . at a lower rate than for intragenerational analysis.''
In the 2015 Response to Comments on the Social Cost of Carbon for
Regulatory Impact Analysis, OMB, DOE, and the other IWG members
recognized that ``Circular A-4 is a living document'' and ``the use of
7 percent is not considered appropriate for intergenerational
discounting. There is wide support for this view in the academic
literature, and it is recognized in Circular A-4 itself.'' Thus, DOE
concludes that a 7% discount rate is not appropriate to apply to value
the social cost of greenhouse gases in the analysis presented in this
analysis. In this analysis, to calculate the present and annualized
values of climate benefits and disbenefits, DOE uses the same discount
rate as the rate used to discount the value of damages from future GHG
emissions, for internal consistency. That approach to discounting
follows the same approach that the February 2021 TSD recommends ``to
ensure internal consistency--i.e., future damages from climate change
using the SC-GHG at 2.5 percent should be discounted to the base year
of the analysis using the same 2.5 percent rate.'' DOE has also
consulted the National Academies' 2017 recommendations on how SC-GHG
estimates can ``be combined in RIAs with other cost and benefits
estimates that may use different discount rates.'' The National
Academies reviewed ``several options,'' including ``presenting all
discount rate combinations of other costs and benefits with [SC-GHG]
estimates.''
As a member of the IWG involved in the development of the February
2021 SC-GHG TSD, DOE agrees with this assessment and will continue to
follow developments in the literature pertaining to this issue. While
the IWG works to assess how best to incorporate the latest, peer
reviewed science to develop an updated set of SC-GHG estimates, it
recommended the interim use of the mot SC-GHG estimates developed by
the IWG prior to the group being disbanded in 2017. The estimates rely
on the same models and harmonized inputs and are calculated using a
range of discount rates. As explained in the February 2021 SC-GHG TSD,
the IWG has recommended that agencies to revert to the same set of four
values drawn from the SC-GHG distributions based on three discount
rates as were used in regulatory analyses between 2010 and 2016 and
subject to public comment. For each discount rate, the IWG combined the
distributions across models and socioeconomic emissions scenarios
(applying equal weight to each) and then selected a set of four values
recommended for use in benefit-cost analyses: an average value
resulting from the model runs for each of three discount rates (2.5
percent, 3 percent, and 5 percent), plus a fourth value, selected as
the 95th percentile of estimates based on a 3 percent discount rate.
The fourth value was included to provide information on potentially
higher-than-expected economic impacts from climate change. As explained
in the February 2021 SC-GHG TSD, and DOE agrees, this update reflects
the immediate need to have an operational SC-GHG for use in regulatory
benefit-cost analyses and other applications that was developed using a
transparent process, peer-reviewed methodologies, and the science
available at the time of that process. Those estimates were subject to
public comment in the context of dozens of proposed rulemakings as well
as in a dedicated public comment period in 2013.
There are a number of limitations and uncertainties associated with
the SC-GHG estimates. First, the current scientific and economic
understanding of discounting approaches suggests discount rates
appropriate for intergenerational analysis in the context of climate
change are likely to be less than 3 percent, near 2 percent or
lower.\37\ Second, the IAMs used to produce these interim estimates do
not include all of the important physical, ecological, and economic
impacts of climate change recognized in the climate change literature
and the science underlying their ``damage functions''--i.e., the core
parts of the IAMs that map global mean temperature changes and other
physical impacts of climate change into economic (both market and
nonmarket) damages--lags behind the most recent research. For example,
limitations include the incomplete treatment of catastrophic and non-
catastrophic impacts in the integrated assessment models, their
incomplete treatment of adaptation and technological change, the
incomplete way in which inter-regional and intersectoral linkages are
modeled, uncertainty in the extrapolation of damages to high
temperatures, and inadequate representation of the relationship between
the discount rate and uncertainty in economic growth over long time
horizons. Likewise, the socioeconomic and emissions scenarios used as
inputs to the models do not reflect new information from the last
decade of scenario generation or the full range of projections. The
modeling limitations do not all work in the same direction in terms of
their influence on the SC-CO2 estimates. However, as
discussed in the February 2021 TSD, the IWG has recommended that, taken
together, the limitations suggest that the interim SC-GHG estimates
used in this rule likely underestimate the damages from GHG emissions.
DOE concurs with this assessment.
---------------------------------------------------------------------------
\37\ Interagency Working Group on Social Cost of Greenhouse
Gases (IWG). 2021. Technical Support Document: Social Cost of
Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive
Order 13990. February. United States Government. Available at:
<https://www.whitehouse.gov/briefing-room/blog/2021/02/26/a-return-to-science-evidence-based-estimates-of-the-benefits-of-reducing-climate-pollution/.
---------------------------------------------------------------------------
DOE's derivations of the SC-GHGs (i.e., SC-CO2, SC-
N2O, and SC-CH4) values used for this rule are
discussed in the following sections, and the results of DOE's analyses
estimating the benefits and disbenefits of the changes in emissions of
these pollutants are presented in section V.A. of this document.
a. Social Cost of Carbon
The SC-CO2 values used for this rule were generated
using the values presented in the 2021 update from the IWG's February
2021 TSD. Table IV.8 shows the updated sets of SC-CO2
estimates from the latest interagency update in 5-year increments from
2020 to 2050. The full set of annual values used is presented in the
SNOPR TSD. For purposes of capturing the uncertainties involved in
regulatory impact analysis, DOE has determined it is appropriate
include all four sets of SC-CO2 values, as recommended by
the IWG.\38\
---------------------------------------------------------------------------
\38\ For example, the February 2021 TSD discusses how the
understanding of discounting approaches suggests that discount rates
appropriate for intergenerational analysis in the context of climate
change may be lower than 3 percent.
[[Page 78409]]
Table IV.8--Annual SC-CO2 Values From 2021 Interagency Update, 2020-2050
[2020$ per metric ton CO2]
----------------------------------------------------------------------------------------------------------------
Discount rate
---------------------------------------------------------
Year 5% 3% 2.5% 3%
---------------------------------------------------------
Average Average Average 95th percentile
----------------------------------------------------------------------------------------------------------------
2020.................................................. 14 51 76 152
2025.................................................. 17 56 83 169
2030.................................................. 19 62 89 187
2035.................................................. 22 67 96 206
2040.................................................. 25 73 103 225
2045.................................................. 28 79 110 242
2050.................................................. 32 85 116 260
----------------------------------------------------------------------------------------------------------------
In calculating the potential climate benefits and disbenefits
resulting from changes in CO2 emissions, DOE used the values
from the 2021 interagency report, adjusted to 2021$ using the implicit
price deflator for gross domestic product (``GDP'') from the Bureau of
Economic Analysis. DOE derived values from 2051 to 2070 based on
estimates published by EPA.\39\ These estimates are based on methods,
assumptions, and parameters identical to the 2020-2050 estimates
published by the IWG. If further analysis of monetized climate benefits
beyond 2070 becomes available prior to the publication of the final
rule, DOE will include that analysis in the final rule.
---------------------------------------------------------------------------
\39\ See EPA, Revised 2023 and Later Model Year Light-Duty
Vehicle GHG Emissions Standards: Regulatory Impact Analysis,
Washington, DC, December 2021. Available at: www.epa.gov/system/files/documents/2021-12/420r21028.pdf (last accessed January 13,
2022).
---------------------------------------------------------------------------
DOE multiplied the CO2 emissions change estimated for
each year by the SC-CO2 value for that year in each of the
four cases. To calculate a present value of the stream of monetized
climate impacts, DOE discounted the values in each of the four cases
using the specific discount rate that had been used to obtain the SC-
CO2 values in each case.
b. Social Cost of Methane and Nitrous Oxide
The SC-CH4 and SC-N2O values used for this
rule were generated using the values presented in the February 2021
TSD.\40\ Table IV.9 shows the updated sets of SC-CH4 and SC-
N2O estimates from the latest interagency update in 5-year
increments from 2020 to 2050. To capture the uncertainties involved in
regulatory impact analysis, DOE has determined it is appropriate to
include all four sets of SC-CH4 and SC-N2O
values, as recommended by the IWG.
---------------------------------------------------------------------------
\40\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021. Available at: www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf
(last accessed March 17, 2021).
Table IV.9--Annual SC-CH4 and SC-N2O Values From 2021 Interagency Update, 2020-2050
[2020$ per metric ton]
--------------------------------------------------------------------------------------------------------------------------------------------------------
SC-CH4 SC-N2O
-------------------------------------------------------------------------------------------------------------------
Discount rate and statistic Discount rate and statistic
Year -------------------------------------------------------------------------------------------------------------------
5% 3% 2.5% 3% 5% 3% 2.5% 3%
-------------------------------------------------------------------------------------------------------------------
Average Average Average 95th percentile Average Average Average 95th percentile
--------------------------------------------------------------------------------------------------------------------------------------------------------
2020................................ 670 1,500 2,000 3,900 5,800 18,000 27,000 48,000
2025................................ 800 1,700 2,200 4,500 6,800 21,000 30,000 54,000
2030................................ 940 2,000 2,500 5,200 7,800 23,000 33,000 60,000
2035................................ 1,100 2,200 2,800 6,000 9,000 25,000 36,000 67,000
2040................................ 1,300 2,500 3,100 6,700 10,000 28,000 39,000 74,000
2045................................ 1,500 2,800 3,500 7,500 12,000 30,000 42,000 81,000
2050................................ 1,700 3,100 3,800 8,200 13,000 33,000 45,000 88,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
DOE multiplied the CH4 and N2O emissions
change estimated for each year by the SC-CH4 and SC-
N2O estimates for that year in each of the cases. To
calculate a present value of the stream of estimated monetized impacts,
DOE discounted the values in each of the cases using the specific
discount rate that had been used to obtain the SC-CH4 and
SC-N2O estimates in each case.
2. Monetization of Other Emissions Impacts
For the SNOPR, DOE estimated the monetized value of NOX
and SO2 emissions changes from electricity generation using
benefit-per-ton estimates for that sector from the EPA's Benefits
Mapping and Analysis Program.\41\ DOE used EPA's values for
PM2.5-related benefits associated with NOX and
SO2 and for ozone-related benefits associated with
NOX for 2025, 2030, and 2040, calculated with discount rates
of 3 percent and 7 percent. DOE used linear interpolation to define
values for the years not given in the 2025 to 2040 period; for years
beyond 2050 the values are held constant.
---------------------------------------------------------------------------
\41\ Estimating the Benefit per Ton of Reducing PM2.5 Precursors
from 21 Sectors. www.epa.gov/benmap/estimating-benefit-ton-reducing-pm25-precursors-21-sectors.
---------------------------------------------------------------------------
DOE also estimated the monetized value of NOX and
SO2 emissions
[[Page 78410]]
changes from site use of natural gas in buildings impacted by this rule
using benefit-per-ton estimates from the EPA's Benefits Mapping and
Analysis Program. Although none of the sectors covered by EPA refers
specifically to residential and commercial buildings, the sector called
``area sources'' would be a reasonable proxy for Federal buildings.\42\
The EPA document provides high and low estimates for 2025 and 2030 at
3- and 7-percent discount rates.\43\ DOE used the same linear
interpolation and extrapolation as it did with the values for
electricity generation.
---------------------------------------------------------------------------
\42\ ``Area sources'' represents all emission sources for which
states do not have exact (point) locations in their emissions
inventories. Because exact locations would tend to be associated
with larger sources, ``area sources'' would be fairly representative
of small, dispersed sources like homes, businesses and office
buildings.
\43\ ``Area sources'' are a category in the 2018 document from
EPA, but are not used in the 2021 document cited previously. See:
www.epa.gov/sites/default/files/2018-02/documents/sourceapportionmentbpttsd_2018.pdf.
---------------------------------------------------------------------------
DOE multiplied the emissions changes (in tons) in each year by the
associated $/ton values, and then discounted each series using discount
rates of 3 percent and 7 percent as appropriate.
We request comment on how to address the monetization of climate
and health benefits and disbenefits from this proposal.
D. Conclusion
Table IV.10 provides DOE's estimate of cumulative emissions changes
expected to result from this rulemaking. DOE acknowledges exchanging
on-site fossil fuel generated energy for reliance on the electric grid,
which may still be generating energy with fossil fuels, doesn't
necessarily lead to an immediate reduction in emissions of GHGs and
SO2. However, it does prepare federal buildings for a green
energy future. By ensuring that federal buildings are designed--either
from the ground up, or when being renovated--to rely on the electric
grid, the rule ensures that long-term, as the grid integrates more
renewable energies, emissions will be reduced.
Table IV.10--Cumulative Emissions Changes in 2025-2084
------------------------------------------------------------------------
Pollutant Total
------------------------------------------------------------------------
Primary (plant) Emissions Changes
------------------------------------------------------------------------
CO2 (million metric tons)............................... -0.3
Hg (tons)............................................... -0.01
NOX (thousand tons)..................................... 0.54
SO2 (thousand tons)..................................... -1.0
CH4 (thousand tons)..................................... -0.1
N2O (thousand tons)..................................... -0.02
------------------------------------------------------------------------
Upstream Emissions Changes
------------------------------------------------------------------------
CO2 (million metric tons)............................... 0.1
Hg (tons)............................................... -0.00002
NOX (thousand tons)..................................... 1.3
SO2 (thousand tons)..................................... -0.01
CH4 (thousand tons)..................................... 10.5
N2O (thousand tons)..................................... -0.0004
------------------------------------------------------------------------
Total Emissions Changes
------------------------------------------------------------------------
CO2 (million metric tons)............................... -0.2
Hg (tons)............................................... -0.01
NOX (thousand tons)..................................... 1.9
SO2 (thousand tons)..................................... -1.0
CH4 (thousand tons)..................................... 10.4
N2O (thousand tons)..................................... -0.021
------------------------------------------------------------------------
Negative values refer to an increase in emissions.
Table IV.11 presents the present value of monetized climate
disbenefits associated with the CO2 emissions changes using
the full set of SC-CO2 estimates described previously.
[[Page 78411]]
Table IV.11--Present Value of Monetized Climate Disbenefits From Changes in CO2 Emissions for Clean Energy Rule
Construction Impacts 2025-2054 With a 30-Year Lifetime
----------------------------------------------------------------------------------------------------------------
SC-CO2 Case
-------------------------------------------------------------
Discount rate and statistics
-------------------------------------------------------------
5% 3% 2.5% 3%
-------------------------------------------------------------
Average Average Average 95th percentile
----------------------------------------------------------------------------------------------------------------
Million 2021$
----------------------------------------------------------------------------------------------------------------
Total............................................. -2.3 -9.4 -14.3 -28.3
----------------------------------------------------------------------------------------------------------------
Note: Negative numbers represent an increase cost or disbenefit. Climate benefits and disbenefits associated
with CO2 emissions changes occur over 2025-2070. DOE expects additional climate impacts to accrue from CO2
emissions changes post 2070, but a lack of available SC-CO2 estimates for years beyond 2070 prevents DOE from
monetizing these additional impacts in this analysis.
Table IV.12 presents the monetized climate benefits associated with
the estimated CH4 emissions reduction, and Table IV.13
presents the monetized climate disbenefits associated with the
estimated changes in N2O emissions.
Table IV.12--Present Value of Monetized Climate Benefits From Changes in Methane Emissions for Clean Energy Rule
Construction Impacts 2025-2054 With a 30-Year Lifetime
----------------------------------------------------------------------------------------------------------------
SC-CH4 Case
-------------------------------------------------------------
Discount rate and statistics
-------------------------------------------------------------
5% 3% 2.5% 3%
-------------------------------------------------------------
Average Average Average 95th percentile
----------------------------------------------------------------------------------------------------------------
Million 2021$
----------------------------------------------------------------------------------------------------------------
Total............................................. 4.0 12.4 17.4 32.7
----------------------------------------------------------------------------------------------------------------
Note: Climate benefits and disbenefits associated with CH4 emissions changes occur over 2025-2070. DOE expects
additional climate impacts to accrue from CH4 emissions changes post 2070, but a lack of available SC-CH4
estimates for years beyond 2070 prevents DOE from monetizing these additional impacts in this analysis.
Table IV.13--Present Value of Monetized Climate Disbenefits From Changes in Nitrous Oxide Emissions for Clean
Energy Rule Construction Impacts 2025-2054 With a 30-Year Lifetime
----------------------------------------------------------------------------------------------------------------
SC-N2O Case
-------------------------------------------------------------
Discount rate and statistics
-------------------------------------------------------------
5% 3% 2.5% 3%
-------------------------------------------------------------
Average Average Average 95th percentile
----------------------------------------------------------------------------------------------------------------
Million 2021$
----------------------------------------------------------------------------------------------------------------
Total............................................. -0.1 -0.3 -0.4 -0.7
----------------------------------------------------------------------------------------------------------------
Note: Negative numbers represent an increase cost or disbenefit. Climate benefits and disbenefits associated
with N2O emissions changes occur over 2025-2070. DOE expects additional climate impacts to accrue from N2O
emissions changes post 2070, but a lack of available SC-N2O estimates for years beyond 2070 prevents DOE from
monetizing these additional impacts in this analysis.
DOE is well aware that scientific and economic knowledge about the
contribution of CO2 and other GHG emissions to changes in
the future global climate and the potential resulting damages to the
global and U.S. economy continues to evolve rapidly. DOE, together with
other Federal agencies, will continue to review methodologies for
estimating the monetary value of changes in CO2 and other
GHG emissions. This ongoing review will consider the comments on this
subject that are part of the public record for this and other
rulemakings, as well as other methodological assumptions and issues.
DOE also estimated the monetary value of the health benefits and
disbenefits associated with changes in NOX and
SO2 emissions anticipated to result from this rule. The
dollar-per-ton values that DOE used are discussed in section V.C of
this document. Table IV.14 presents the present value for
NOX emissions reduction calculated using 7-percent and 3-
percent discount rates, and Table IV.15 presents similar results for
SO2 emissions increases. The results in these tables reflect
application of EPA's low dollar-per-ton values, which DOE used to be
conservative.
[[Page 78412]]
Table IV.14--Present Value of NOX Emissions Reduction
----------------------------------------------------------------------------------------------------------------
3% Discount rate 7% Discount rate 3% Discount rate 7% Discount rate
(low) (low) (high) (high)
----------------------------------------------------------------------------------------------------------------
Million 2021$
----------------------------------------------------------------------------------------------------------------
Total....................... 20.2 6.6 31.0 10.9
----------------------------------------------------------------------------------------------------------------
Table IV.15--Present Value of SO2 Emissions Increase
----------------------------------------------------------------------------------------------------------------
3% Discount rate 7% Discount rate 3% Discount rate 7% Discount rate
(low) (low) (high) (high)
----------------------------------------------------------------------------------------------------------------
Million 2021$
----------------------------------------------------------------------------------------------------------------
Total....................... -54.1 -22.5 -57.8 -23.9
----------------------------------------------------------------------------------------------------------------
Note: Negative numbers represent an increase cost or disbenefit.
The Federal building energy standards in this proposed rule are
projected to result in an estimated national increased energy use of
0.029 quad. The increase is for the full fuel cycle which is
essentially accounting for source energy impacts. The actual breakdown
is .001 upstream energy savings and an increase of 0.030 primary energy
use (energy use impacts at the power plants) for a grand total of an
increase in .029 quads of full fuel cycle energy. Additionally, the
Federal building energy standards are projected to result in an
estimated national CO2 emissions increase of 0.2 Mt (million
metric tons) according to AEO 2022 emission projection values
accounting for electricity procured from the grid. It should be noted
that this is a CO2 emissions increase only and does not
account for the additional emission impacts from other GHGs such as
N2O and CH4. When combining CO2
increases with savings in Methane (CH4) and minor increases
in N2O into a CO2 equivalent metric, there
results in an overall net savings of CO2e emissions of
approximately 0.07 MMT (million metric tons) CO2e.
Notably, the recent enactment of the Inflation Reduction Act of
2022 (Pub. L. 117-169) and the Infrastructure Investment and Jobs Act
(Pub. L. 117-58) will drive power sector emissions reductions in both
the near-term and the short-term. With these laws in place, U.S.
economy-wide greenhouse gas emissions are already projected to be 40
percent below 2005 levels in 2030, with the power sector representing
the largest source of these reductions. In contrast to the base case
presented in this rulemaking, there are alternative scenarios for
projecting the future emissions associated with grid electricity that
better align with these new policy drivers. These scenarios, discussed
in section V.A of this document, have a large effect on the net
emissions impacts of the proposed rulemakings and present larger
environmental and overall net benefits. With these policy drivers now
in place, reduced power sector emissions below 40% would only further
add to the benefits of this proposed rulemaking in the future in terms
of emissions benefits. These scenarios do not present comprehensive
profiles for all additional climate factors beyond CO2
emissions (such as NOX, Hg, N2O, CH4,
and SO2), and have been presented only in the corresponding
TSD for reference.
A more detailed discussion of the basis for these tentative
conclusions is contained in the remainder of this document and the
accompanying TSD. Further discussion on the costs and benefits can be
found in section V.A of this document.
E. Reference Resources
DOE has prepared a list of resources to help Federal agencies
address the reduction of fossil fuel-generated energy consumption.
These resources come in many forms such as design guidance, case
studies and in a variety of media such as printed documents or
websites. The resources for energy efficiency improvement will also
provide guidance for fossil fuel-generated energy consumption
reductions.
U.S. Department of Energy, Federal Energy Management
Program. (https://www.energy.gov/eere/femp/federal-energy-management-program). 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. (https://buildingdata.energy.gov/).
U.S. Department of Energy, Better Buildings Program.
Decarbonization Resource Hub. (https://betterbuildingssolutioncenter.energy.gov/carbon-hub).
New York State Energy Research and Development Authority
(NYSERDA). Building Decarbonization Insights. (https://www.nyserda.ny.gov/All-Programs/Empire-Building-Challenge/Building-Decarbonization-Insights)
New Buildings Institute. Buildings Database. (https://newbuildings.org/resource/getting-to-zero-database/).
V. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866 and 13563
Executive Order (``E.O.'') 12866, ``Regulatory Planning and
Review,'' as supplemented and reaffirmed by E.O. 13563, ``Improving
Regulation and Regulatory Review, 76 FR 3821 (Jan. 21, 2011), requires
agencies, to the extent permitted by law, to (1) propose or adopt a
regulation only upon a reasoned determination that its benefits justify
its costs (recognizing that some benefits and costs are difficult to
quantify); (2) tailor regulations to impose the least burden on
society, consistent with obtaining regulatory objectives, taking into
account, among other things, and to the extent practicable, the costs
of cumulative regulations; (3) select, in choosing among alternative
regulatory approaches, those approaches that maximize net benefits
(including potential economic, environmental, public health and safety,
and other advantages; distributive impacts; and equity); (4) to the
extent feasible, specify performance objectives, rather than specifying
the behavior or manner of compliance that regulated entities must
adopt; and (5) identify and assess available alternatives to direct
regulation, including providing economic incentives to encourage the
desired behavior, such as user fees or
[[Page 78413]]
marketable permits, or providing information upon which choices can be
made by the public. DOE emphasizes as well that E.O. 13563 requires
agencies to use the best available techniques to quantify anticipated
present and future benefits and costs as accurately as possible. In its
guidance, OIRA has emphasized that such techniques may include
identifying changing future compliance costs that might result from
technological innovation or anticipated behavioral changes. For the
reasons stated in the preamble, this proposed regulatory action is
consistent with these principles.
Section 6(a) of E.O. 12866 also requires agencies to submit
``significant regulatory actions'' to the Office of Information and
Regulatory Affairs (``OIRA'') for review. OIRA has determined that this
proposed regulatory action constitutes a ``significant regulatory
action'' under section 3(f) of E.O. 12866. Accordingly, pursuant to
section 6(a)(3)(C) of E.O. 12866, DOE has provided to OIRA an
assessment, including the underlying analysis, of benefits and costs
anticipated from the proposed regulatory action, together with, to the
extent feasible, a quantification of those costs; and an assessment,
including the underlying analysis, of costs and benefits of potentially
effective and reasonably feasible alternatives to the planned
regulation, and an explanation why the planned regulatory action is
preferable to the identified potential alternatives. These assessments
are summarized in the tables that follows, as well as elsewhere in this
preamble. Further detail can be found in the technical support document
for this proposed rulemaking.
DOE's analyses indicate that the proposed regulation would save a
significant amount of site energy; however, switching from gas loads
burned on-site to electric loads produced off-site, at national average
level emission rates, would result in an increase of CO2,
N2O, Hg, and SO2 emissions with a decrease in
NOX and CH4 emissions. Electrifying the end-use
equipment results in emissions that become dependent upon the
electricity generation mix delivered to the building. Relative to the
case without the proposed amended standards, Clean Energy Rule
compliant buildings constructed in the 30-year period that begins in
the anticipated year of compliance with the proposed amended standards
(2025-2034) will result in--an increased lifetime energy use of 0.029
quadrillion British thermal units (``Btu''), or quads.\44\
---------------------------------------------------------------------------
\44\ The quantity refers to full-fuel-cycle (``FFC'') energy
savings. FFC energy savings includes the energy consumed in
extracting, processing, and transporting primary fuels (i.e., coal,
natural gas, petroleum fuels), and, thus, presents a more complete
picture of the impacts of energy efficiency standards. For more
information on the FFC metric, see section on emission within this
document.
---------------------------------------------------------------------------
The cumulative net present value (``NPV'') of the proposed
standards for Clean Energy Rule compliant buildings ranges from -$15.6
million (at a 7-percent discount rate) to -$85.3 Million (at a 3-
percent discount rate). This NPV expresses the estimated total value of
future operating-cost savings minus the estimated increased product
costs for a Clean Energy Rule compliant building constructed in 2025-
2054.
In addition, the proposed standards for Clean Energy Rule compliant
buildings are projected to impact emissions of multiple greenhouse
gases and other pollutants. DOE estimates that the proposed standards
would result in cumulative emissions (over the same period as for
energy savings) impacts of an increase of 0.2 million metric tons
(``Mt'') \45\ of carbon dioxide (``CO2''), an increase of
1.0 thousand tons of sulfur dioxide (``SO2''), a decrease of
1.9 thousand tons of nitrogen oxides (``NOX''), a decrease
of 10.4 thousand tons of methane (``CH4''), an increase of
0.021 thousand tons of nitrous oxide (``N2O''), and an
increase of 0.01 tons of mercury (``Hg'').\46\
---------------------------------------------------------------------------
\45\ A metric ton is equivalent to 1.1 short tons. Results for
emissions other than CO2 are presented in short tons.
\46\ DOE calculated emissions changes relative to the no-new-
standards case, which reflects key assumptions in the Annual Energy
Outlook [2022] (``AEO[2022'']). AEO2022 represents current federal
and state legislation and final implementation of regulations as of
the time of its preparation. See section IV.K of this document for
further discussion of AEO2022 assumptions that effect air pollutant
emissions.
---------------------------------------------------------------------------
DOE estimates the monetized net climate benefits from a change in
emissions of greenhouse gases using four different estimates of the
social cost of CO2 (``SC-CO2''), the social cost
of methane (``SC-CH4''), and the social cost of nitrous
oxide (``SC-N2O''). Together these represent the social cost
of greenhouse gases (``SC-GHG''). DOE used interim SC-GHG values
developed by an Interagency Working Group on the Social Cost of
Greenhouse Gases (``IWG'').\47\ The derivation of these values is
discussed in section IV. of this document. For presentational purposes,
the net climate benefits (Including both the climate benefits and
disbenefits) associated with the average SC-GHG at a 3-percent discount
rate is $2.8 million, primarily driven by savings in CH4.
DOE does not have a single central SC-GHG point estimate and it
emphasizes the importance and value of considering the benefits
calculated using all four SC-GHG estimates.\48\
---------------------------------------------------------------------------
\47\ See Interagency Working Group on Social Cost of Greenhouse
Gases, Technical Support Document: Social Cost of Carbon, Methane,
and Nitrous Oxide. Interim Estimates Under Executive Order 13990,
Washington, DC, February 2021, available at www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf?so
urce=email.
\48\ On March 16, 2022, the Fifth Circuit Court of Appeals (No.
22-30087) granted the federal government's emergency motion for stay
pending appeal of the February 11, 2022, preliminary injunction
issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a
result of the Fifth Circuit's order, the preliminary injunction is
no longer in effect, pending resolution of the federal government's
appeal of that injunction or a further court order. Among other
things, the preliminary injunction enjoined the defendants in that
case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse
gases--which were issued by the Interagency Working Group on the
Social Cost of Greenhouse Gases on February 26, 2021--to monetize
the benefits of reducing greenhouse gas emissions. In the absence of
further intervening court orders, DOE will revert to its approach
prior to the injunction and present monetized benefits where
appropriate and permissible under law.
---------------------------------------------------------------------------
DOE also estimates health disbenefits from changes in
SO2 and NOX emissions.\49\ DOE estimates the
present value of the health disbenefits would be $15.9 million using a
7-percent discount rate, and $33.9 million using a 3-percent discount
rate which is driven by SO2 emission increases outweighing
NOX emissions decreases.\50\ DOE is currently only
monetizing (for SO2 and NOX) PM2.5
precursor health effects and (for NOX) ozone precursor
health benefits, but will continue to assess the ability to monetize
other effects such as health effects from reductions in direct
PM2.5 emissions.
---------------------------------------------------------------------------
\49\ DOE estimated the monetized value of NOX and
SO2 emissions changes associated with the Clean Energy
Rule using benefit per ton estimates from the scientific literature.
See section IV.L.2 of this document for further discussion.
\50\ DOE estimates the economic value of these emissions changes
resulting from the considered rule for the purpose of complying with
the requirements of Executive Order 12866.
---------------------------------------------------------------------------
Table V.1 summarizes the economic benefits and costs expected to
result from the proposed standards. In the table, total benefits for
both the 3-percent and 7-percent discount rate cases include monetized
climate benefits based on the average SC-GHG estimate under 3-percent
discount rate (thus the climate benefits number stays the same). DOE
does not have a single central SC-GHG point estimate and it emphasizes
the importance and value of considering the benefits calculated using
all four SC-GHG estimates. The estimated total net benefits using each
of the four cases are presented in section IV of this document.
[[Page 78414]]
Table V.1--Summary of Monetized Economic Benefits and Costs
[Million 2021$] [2025-2054 plus 30-year lifetime]
----------------------------------------------------------------------------------------------------------------
Million 2021$
---------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Operating Cost Savings.................................................. -195.5 -89.5
Climate Benefits *...................................................... 2.8 2.8
Health Benefits **...................................................... -33.9 -15.9
Total Benefits [dagger]................................................. -226.7 -102.7
Incremental Product Costs [dagger][dagger].............................. -139.4 -85.5
Net Benefits............................................................ -87.3 -17.3
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-
rise buildings built and operated in 2025-2084. These results include benefits which accrue after 2054 from
the buildings constructed in 2025-2054. Climate benefits and disbenefits associated with GHG emissions changes
occur over 2025-2070. DOE expects additional climate impacts to accrue from GHG emissions changes post 2070,
but a lack of available SC-CO2, SC-CH4, and SC-N2O estimates for emissions years beyond 2070 prevents DOE from
monetizing these additional impacts in this analysis.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane
(SC-CH4), and nitrous oxide (SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates;
95th percentile at 3 percent discount rate). Together these represent the social cost of greenhouse gases (SC-
GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a
3 percent discount rate are shown but the Department does not have a single central SC-GHG point estimate. See
section IV.C of this document for more details. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-
30087) granted the federal government's emergency motion for stay pending appeal of the February 11, 2022,
preliminary injunction issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the
Fifth Circuit's order, the preliminary injunction is no longer in effect, pending resolution of the federal
government's appeal of that injunction or a further court order. Among other things, the preliminary
injunction enjoined the defendants in that case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse gases--which were issued by the Interagency
Working Group on the Social Cost of Greenhouse Gases on February 26, 2021--to monetize the benefits of
reducing greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only
monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits but
will continue to assess the ability to monetize other effects such as health benefits from reductions in
direct PM2.5 emissions. See section IV.C of this document for more details.
[dagger] Total and net benefits include those consumer, climate, and health benefits that can be quantified and
monetized. For presentation purposes, total and net benefits for both the 3-percent and 7-percent cases are
presented using the average SC-GHG with 3-percent discount rate, but the Department does not have a single
central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated
using all four SC-GHG estimates.
[Dagger] Costs include incremental equipment costs as well as installation costs.
The benefits and costs of the proposed standards can also be
expressed in terms of annualized values. The monetary values for the
total annualized net benefits are (1) the reduced product purchase
prices and installation costs, minus (2) the increase in operating
costs, plus (3) the monetized value of changes in GHG, and
NOX, and SO2 emissions, all annualized.\51\ The
benefits and disbenefits associated with changes in emissions as a
result of the proposed standards are also calculated based on the
lifetime of a Clean Energy Rule compliant building constructed in 2025-
2054.
---------------------------------------------------------------------------
\51\ To convert the time-series of costs and benefits into
annualized values, DOE calculated a present value in $2021, the year
used for discounting the NPV of total costs and savings. For the
benefits, DOE calculated a present value associated with each year's
shipments in the year in which the shipments occur (e.g., 2030), and
then discounted the present value from each year to 2022. Using the
present value, DOE then calculated the fixed annual payment over a
30-year period, starting in the compliance year, that yields the
same present value.
---------------------------------------------------------------------------
Estimates of annualized benefits and costs of the proposed
standards are shown in. The results show as the primary estimate
utilize a 7-percent discount rate for operating benefits, costs, and
health benefits and disbenefits (from changes to NOX and
SO2 emissions), and a 3-percent discount rate case for
climate benefits (from GHG emissions) are as follows:
Capital cost impacts of the standards proposed in this
case are estimated to be $7.89 million per year in decreased equipment
costs.
Annual operating disbenefits are estimated to be $8.26
million per year in increased equipment operating costs, primarily
driven by the higher relative cost of electricity compared to natural
gas.
Net climate benefits total $0.15 million per year,
primarily driven by savings from CH4.
Net health disbenefits total $1.47 million per year,
primarily driven by increased SO2 emissions overshadowing
NOX emissions savings.
Overall net monetized disbenefits would amount to a cost
of $1.70 million per year.
Using a 3-percent discount rate for all benefits, disbenefits and
costs the annualized results are as follows:
Capital cost impacts of the standards proposed in this
case are estimated to be $7.55 million per year in decreased equipment
costs.
Annual operating disbenefits are estimated to be $10.58
million per year in increased equipment operating costs, driven by the
higher relative cost of electricity compared to natural gas.
Net Climate benefits total $0.15 million per year,
primarily driven by savings from CH4.
Net health disbenefits total $1.84 million per year,
primarily driven by increased SO2 emissions overshadowing
NOX emissions savings.
Overall net monetized disbenefits would amount to a cost
of $4.73 million per year.
[[Page 78415]]
Table V.2--Annualized Monetized Benefits and Costs of Proposed Regulation
[Million 2021$]
----------------------------------------------------------------------------------------------------------------
Million 2021$/year
Category ---------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Operating Cost Impacts.................................................. -10.58 -8.26
Climate Benefits *...................................................... 0.15 0.15
Health Benefits **...................................................... -1.84 -1.47
Total Benefits [dagger]................................................. -12.27 -9.58
Incremental Product Costs [dagger][dagger].............................. -7.55 -7.89
Net Benefits............................................................ -4.73 -1.70
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with the Clean Energy Rule impacted buildings in
2025-2084. These results include benefits which accrue after 2054 from the buildings constructed in 2025-2054.
* Climate benefits are calculated using four different estimates of the SC-GHG (see section IV.D of this
document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG
at a 3 percent discount rate are shown, but the Department does not have a single central SC-GHG point
estimate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the federal
government's emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of the federal government's appeal of that
injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in
that case from ``adopting, employing, treating as binding, or relying upon'' the interim estimates of the
social cost of greenhouse gases--which were issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its approach prior to the injunction and
presents monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only
monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits but
will continue to assess the ability to monetize other effects such as health benefits from reductions in
direct PM2.5 emissions.
[dagger] Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-
percent discount rate, but the Department does not have a single central SC-GHG point estimate. DOE emphasizes
the importance and value of considering the benefits calculated using all four SC-GHG estimates.
[dagger][dagger] Costs include incremental equipment costs as well as installation costs.
DOE's analysis of the national impacts of the proposed standards is
described in sections IV.A, and IV.B of this document.
Table V.3 presents DOE's evaluation of the economic impacts of the
proposed regulations, as measured by the average life-cycle cost
(``LCC'').\52\ The average LCC savings are -$30.1 Million and there is
no traditional PBP as the incremental capital cost of the proposed
regulation is negative but the incremental operating cost is positive
(see section IV of this document).
---------------------------------------------------------------------------
\52\ The average LCC refer to buildings that are affected by a
standard and are measured relative to the efficiency distribution in
the no-new-standards case, which depicts the market in the
compliance year in the absence of new or amended standards (see
section E. Impacts of the Rule of this document). The simple PBP,
which is designed to compare specific building performance levels,
is measured relative to the baseline compliance case (see section
V.A of this document).
Table V.3--Impacts of Proposed Regulation
------------------------------------------------------------------------
Average LCC savings
Clean energy rule compliant building policy (million 2021$)
------------------------------------------------------------------------
3% Discount Rate.............................. -56.13
7% Discount Rate.............................. -4.077
------------------------------------------------------------------------
DOE's analysis is sensitive to how emission factors per unit of
grid electricity purchased change over time. The base case presented in
this rulemaking utilizes emission factors obtained through EIA's Annual
Energy Outlook for 2022 (AEO 2022). This is consistent with the
methodology used in other rulemakings (including the efficiency
portions for the analysis behind 10 CFR parts 433 and 435) and
representative of an expected or ``business as usual'' case. However,
AEO 2022 does not account for goals or plans to accelerate grid
decarbonization, such as President Biden's goal to achieve 100% carbon
pollution-free electricity by 2035. Such accelerated clean grid
scenarios can significantly impact the overall emissions profile of the
rule allowing for more climate benefits sooner in the lifecycle of the
expected projects.
To demonstrate this proposed rulemaking's sensitivity to purchased
electricity emission factor ``cleanliness'' projections, DOE analyzed
an additional case where the future grid emission factors were assumed
to follow a ``95% reduction by 2035'' (95 by 2035) profile as defined
in the National Renewable Energy Lab's ``2021 Standard Scenarios
Report: A U.S. Electricity Sector Outlook'' report presented in the
technical support document for this rulemaking. This case represents a
change in national electricity generation which assumes national power
sector CO2 emissions reach 95% below 2005 levels by 2035 and
are eliminated on a net basis by 2050. This aggressive case results in
only three years of annual increases in CO2e gas emissions
and results in cumulative savings of CO2e emissions just
after 5 years. Results for the 95 by 2035 case are presented in Table
V.4 and Table V.5 of this document. Additional details on the
sensitivity to emission factor progression and an additional case run
based on the EIA Corporate Goal data are presented in the technical
support document and environmental assessment supporting this rule. As
noted previously, these alternative cases are presented to show the
emissions and climate impacts of this rule in accelerated clean grid
scenarios that may flow from recent legislation and Administration
priorities, but that are
[[Page 78416]]
not represented in the base case using AEO 2022 (the ``business as
usual'' case).
Table V.4--Summary of Monetized Economic Benefits and Costs (Million 2021$) (2025-2054 Plus 30-Year Lifetime)
for 95 by 35 Emissions Reductions Case
----------------------------------------------------------------------------------------------------------------
Million 2021$
---------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Operating Cost Savings.................................................. -195.5 -89.5
Climate Benefits *...................................................... 92.9 92.9
Health Benefits **...................................................... 46.6 15.8
Total Benefits [dagger]................................................. -56.0 19.2
Incremental Product Costs [dagger][dagger].............................. -139.4 -85.5
Net Benefits............................................................ 83.4 104.6
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-
rise buildings built in 2025-2084. These results include benefits which accrue after 2054 from the buildings
constructed in 2025-2054.
* Climate benefits are calculated using four different estimates of the social cost of carbon (SC-CO2), methane
(SC-CH4), and nitrous oxide (SC-N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates;
95th percentile at 3 percent discount rate). Together these represent the social cost of greenhouse gases (SC-
GHG). For presentational purposes of this table, the climate benefits associated with the average SC-GHG at a
3 percent discount rate are shown but the Department does not have a single central SC-GHG point estimate. See
section IV.C of this document for more details. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-
30087) granted the federal government's emergency motion for stay pending appeal of the February 11, 2022,
preliminary injunction issued in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the
Fifth Circuit's order, the preliminary injunction is no longer in effect, pending resolution of the federal
government's appeal of that injunction or a further court order. Among other things, the preliminary
injunction enjoined the defendants in that case from ``adopting, employing, treating as binding, or relying
upon'' the interim estimates of the social cost of greenhouse gases--which were issued by the Interagency
Working Group on the Social Cost of Greenhouse Gases on February 26, 2021--to monetize the benefits of
reducing greenhouse gas emissions. In the absence of further intervening court orders, DOE will revert to its
approach prior to the injunction and present monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only
monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits but
will continue to assess the ability to monetize other effects such as health benefits from reductions in
direct PM2.5 emissions. See section IV.C of this document for more details.
[dagger] Total and net benefits include those consumer, climate, and health benefits that can be quantified and
monetized. For presentation purposes, total and net benefits for both the 3-percent and 7-percent cases are
presented using the average SC-GHG with 3-percent discount rate, but the Department does not have a single
central SC-GHG point estimate. DOE emphasizes the importance and value of considering the benefits calculated
using all four SC-GHG estimates.
[dagger][dagger] Costs include incremental equipment costs as well as installation costs.
Table V.5--Annualized Monetized Benefits and Costs of Proposed Regulation (Million 2021$) for 95 by 35 Emissions
Reductions Case
----------------------------------------------------------------------------------------------------------------
Million 2021$/year
Category ---------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
Operating Cost Impacts.................................................. -10.58 -8.26
Climate Benefits *...................................................... 5.03 5.03
Health Benefits **...................................................... 2.52 1.46
Total Benefits [dagger]................................................. -3.03 -1.77
Incremental Product Costs [dagger][dagger].............................. -7.55 -7.89
Net Benefits............................................................ 4.51 6.11
----------------------------------------------------------------------------------------------------------------
Note: This table presents the costs and benefits associated with Clean Energy Rule impacted buildings in 2025-
2084. These results include benefits which accrue after 2054 from the buildings constructed in 2025-2054.
* Climate benefits are calculated using four different estimates of the SC-GHG (see section IV.D of this
document). For presentational purposes of this table, the climate benefits associated with the average SC-GHG
at a 3 percent discount rate are shown, but the Department does not have a single central SC-GHG point
estimate. On March 16, 2022, the Fifth Circuit Court of Appeals (No. 22-30087) granted the Federal
government's emergency motion for stay pending appeal of the February 11, 2022, preliminary injunction issued
in Louisiana v. Biden, No. 21-cv-1074-JDC-KK (W.D. La.). As a result of the Fifth Circuit's order, the
preliminary injunction is no longer in effect, pending resolution of the Federal government's appeal of that
injunction or a further court order. Among other things, the preliminary injunction enjoined the defendants in
that case from ``adopting, employing, treating as binding, or relying upon'' the interim estimates of the
social cost of greenhouse gases--which were issued by the Interagency Working Group on the Social Cost of
Greenhouse Gases on February 26, 2021--to monetize the benefits of reducing greenhouse gas emissions. In the
absence of further intervening court orders, DOE will revert to its approach prior to the injunction and
presents monetized benefits where appropriate and permissible under law.
** Health disbenefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only
monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits but
will continue to assess the ability to monetize other effects such as health benefits from reductions in
direct PM2.5 emissions.
[dagger] Total benefits for both the 3-percent and 7-percent cases are presented using the average SC-GHG with 3-
percent discount rate, but the Department does not have a single central SC-GHG point estimate. DOE emphasizes
the importance and value of considering the benefits calculated using all four SC-GHG estimates.
[dagger][dagger] Costs include incremental equipment costs as well as installation costs.
DOE's analysis of the impacts of the proposed regulation on federal
agencies is described in section V.A, Cost Effectiveness, of this
document.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis (``IRFA'')
for any rule that by law must be proposed for public comment, unless
the agency certifies
[[Page 78417]]
that the rule, if promulgated, will not have a significant economic
impact on a substantial number of small entities. As required by E.O.
13272, ``Proper Consideration of Small Entities in Agency Rulemaking,''
67 FR 53461 (Aug. 16, 2002), DOE published procedures and policies on
February 19, 2003, to ensure that the potential impacts of its rules on
small entities are properly considered during the rulemaking process.
68 FR 7990. DOE has made its procedures and policies available on the
Office of the General Counsel's website (www.energy.gov/gc/office-general-counsel).
This proposed rule 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 rule will
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
This proposed rulemaking will impose no new information or record
keeping requirements. Accordingly, OMB clearance is not required under
the Paperwork Reduction Act. (44 U.S.C. 3501 et seq.)
D. Review Under the National Environmental Policy Act of 1969
DOE prepared a draft Environmental Assessment (EA) (DOE/EA-1778)
entitled, ``Environmental Assessment for Final 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 (NEPA) (40 CFR parts 1500-1508), 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 this proposed rule. The rule, by
its fundamental intent, will have a positive impact on the environment.
The anticipated impacts of this proposed rulemaking are an overall
decrease in CO2 equivalent gases (despite modest increases
in base CO2 and N2O emissions, CH4
emission reductions result in net savings) with an additional decrease
in NOX emission and an increase in SO2 emissions
resulting from reduced fossil fuel-generated energy consumption in new
Federal buildings and major renovations of Federal buildings but
increased electric purchases from the grid.
To identify the potential environmental impacts that may result
from implementing the proposed rule on Federal buildings, DOE compared
the requirements of the proposed rule shifting all scope 1 stationary
combustion on site fossil fuel usage to electric with the ``no-action
alternative''.
Accordingly, DOE concludes in the draft EA that new Federal
buildings designed and constructed to be compliant with the Clean
Energy Rule will not have a significant environmental impact compared
to Federal buildings designed and constructed to Standard 90.1-2019
because the site energy impacts are very sensitive to and offset by
upstream emissions associated with electricity purchased from the grid.
This change in energy usage translates to varied emissions impacts of
carbon dioxide (``CO2''), nitrogen oxides
(``NOX''), mercury (``Hg''), and methane
(``CH4'') over the 30-year period examined in the EA. As
reported in the EA, Cumulative emission changes for 30 years of
construction and operation for Federal buildings built during the
analysis period (2025 through 2054) were estimated to be an increase of
174,730 metric tons of CO2, an increase of 907.4 tons of
SO2, a decrease of 1,597.67 tons of NOX, a
decrease of 8,917.46 tons of CH4, and an increase of 17.76
tons of N2O.
E. Review Under Executive Order 13132
E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), imposes
certain requirements on Federal agencies formulating and implementing
policies or regulations that preempt State law or that have federalism
implications. The Executive order requires agencies to examine the
constitutional and statutory authority supporting any action that would
limit the policymaking discretion of the States and to carefully assess
the necessity for such actions. The Executive order also requires
agencies to have an accountable process to ensure meaningful and timely
input by State and local officials in the development of regulatory
policies that have federalism implications. On March 14, 2000, DOE
published a statement of policy describing the intergovernmental
consultation process it will follow in the development of such
regulations. 65 FR 13735. DOE has examined this proposed rule and has
tentatively determined that it 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. Therefore, no
further action is required by Executive Order 13132.
F. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil
Justice Reform,'' 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, (3) provide a
clear legal standard for affected conduct rather than a general
standard, and (4) promote simplification and burden reduction. 61 FR
4729 (Feb. 7, 1996). Regarding the review required by section 3(a),
section 3(b) of E.O. 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 proposed rule meets the
relevant standards of E.O. 12988.
G. Review Under the Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA'')
requires each Federal agency to assess the effects of Federal
regulatory actions on State,
[[Page 78418]]
local, and Tribal governments and the private sector. Public Law 104-4,
section 201 (codified at 2 U.S.C. 1531). 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),
(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 them. On March 18, 1997, DOE published a statement of
policy on its process for intergovernmental consultation under UMRA. 62
FR 12820. DOE's policy statement is also available at www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf.
This proposed 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
UMRA do not apply.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any rule that may affect family well-being.
This proposed rule would not have any impact on the autonomy or
integrity of the family as an institution. Accordingly, DOE has
concluded that it is not necessary to prepare a Family Policymaking
Assessment.
I. Review Under Executive Order 12630
Pursuant to E.O. 12630, ``Governmental Actions and Interference
with Constitutionally Protected Property Rights,'' 53 FR 8859 (Mar. 15,
1988), DOE has determined that this proposed rule would not result in
any takings that might require compensation under the Fifth Amendment
to the U.S. 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 Federal agencies to review
most disseminations of information to the public under information
quality guidelines established by each agency pursuant to general
guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452
(Feb. 22, 2002), and DOE's guidelines were published at 67 FR 62446
(Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving
Implementation of the Information Quality Act (April 24, 2019), DOE
published updated guidelines which are available at www.energy.gov/sites/prod/files/2019/12/f70/DOE%20Final%20Updated%20IQA%20Guidelines%20Dec%202019.pdf. DOE has
reviewed this SNOPR under the OMB and DOE guidelines and has concluded
that it is consistent with applicable policies in those guidelines.
K. Review Under Executive Order 13211
E.O. 13211, ``Actions Concerning Regulations That Significantly
Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22,
2001), requires Federal agencies to prepare and submit to OIRA at OMB,
a Statement of Energy Effects for any proposed significant energy
action. A ``significant energy action'' is defined as any action by an
agency that promulgates 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 proposed 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.
L. Information Quality
On December 16, 2004, OMB, in consultation with the Office of
Science and Technology Policy (``OSTP''), issued its Final Information
Quality Bulletin for Peer Review (``the Bulletin''). 70 FR 2664 (Jan.
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.
M. Description of Materials Incorporated by Reference
In this final rule, DOE incorporates by reference ANSI/ASHRAE/IES
Standard 90.1-2019, Energy Standard for Buildings Except Low-Rise
Residential Buildings, (I-P Edition), 2019. This standard provides
minimum requirements for energy efficient designs for buildings except
for low-rise residential buildings. Copies of this standard are
available from ASHRAE, Inc., 180 Peachtree Corners, GA 30092, (404)
636-8400, www.ashrae.org. ASHRAE provides a free, online, read-only
version of Standard 90.1-2019 available at www.ashrae.org/technical-resources/standards-and-guidelines. Users must scroll down to locate
and click on Standard 90.1-2019 (IP).
The Director of the Federal Register previously approved ANSI/
ASHRAE/IES 90.1-2004, 2007, 2010, and 2013, Energy Standard for
Buildings Except Low-Rise Residential Buildings for incorporation by
reference in 10 CFR part 433.
In this final rule, DOE incorporates by reference the ICC 2021
International Energy Conservation Code, (IECC), Redline Version,
copyright 2021. This U.S. standard provides minimum requirements for
energy-efficient
[[Page 78419]]
designs for low-rise residential buildings. Copies of this standard are
available from the International Code Council, 4051 West Flossmoor
Road, Country Club Hills, IL 60478, 1-888-422-7233, www.iccsafe.org.
The Director of the Federal Register previously approved ICC
International Energy Conservation Code (IECC) 2005, 2009, and 2015
Editions, for incorporation by reference in 10 CFR part 435.
VI. Public Participation
A. Attendance at the Public Meeting
The time, date, and location of the public meeting are listed in
the DATES and ADDRESSES sections at the beginning of this document.
This meeting will be held via webinar. Webinar registration
information, participant instructions, and information about the
capabilities available to webinar participants can be found at the
following link: https://doe.webex.com/weblink/register/ra441feed3edc105af1383fa6e41e1e39. Participants are responsible for
ensuring their systems are compatible with the webinar software.
Please note that foreign nationals attending the meeting are
subject to advance security screening procedures which require advance
notice prior to attendance at the public meeting. If a foreign national
wishes to participate in the public meeting, please inform DOE of this
fact as soon as possible by contacting Ms. Regina Washington at (202)
586-1214 or by email ([email protected]) so that the
necessary procedures can be completed.
B. Procedure for Submitting Prepared General Statements for
Distribution
Any person who has plans to present a prepared general statement
may request that copies of his or her statement be made available at
the public meeting. Such persons may submit requests, along with an
advance electronic copy of their statement in PDF (preferred),
Microsoft Word or Excel, WordPerfect, or text (ASCII) file format, to
the appropriate address shown in the ADDRESSES section at the beginning
of this document. The request and advance copy of statements must be
received at least one week before the public meeting and are to be
emailed. Please include a telephone number to enable DOE staff to make
follow-up contact, if needed.
C. Conduct of the Public Meeting
DOE will designate a DOE official to preside at the public meeting
and may also use a professional facilitator to aid discussion. The
meeting will not be a judicial or evidentiary-type public hearing, but
DOE will conduct it in accordance with section 336 of EPCA. (42 U.S.C.
6306) A court reporter will be present to record the proceedings and
prepare a transcript. DOE reserves the right to schedule the order of
presentations and to establish the procedures governing the conduct of
the public meeting. There shall not be discussion of proprietary
information, costs or prices, market share, or other commercial matters
regulated by U.S. anti-trust laws. After the public meeting, interested
parties may submit further comments on the proceedings, as well as on
any aspect of the rulemaking, until the end of the comment period.
The public meeting will be conducted in an informal, conference
style. DOE will present a general overview of the topics addressed in
this rulemaking, allow time for prepared general statements by
participants, and encourage all interested parties to share their views
on issues affecting this rulemaking. Each participant will be allowed
to make a general statement (within time limits determined by DOE),
before the discussion of specific topics. DOE will allow, as time
permits, other participants to comment briefly on any general
statements.
At the end of all prepared statements on a topic, DOE will permit
participants to clarify their statements briefly. Participants should
be prepared to answer questions by DOE and by other participants
concerning these issues. DOE representatives may also ask questions of
participants concerning other matters relevant to this rulemaking. The
official conducting the public meeting will accept additional comments
or questions from those attending, as time permits. The presiding
official will announce any further procedural rules or modification of
the previous procedures that may be needed for the proper conduct of
the public meeting.
A transcript of the public meeting will be included in the docket,
which can be viewed as described in the Docket section at the beginning
of this document and will be accessible on the DOE website. In
addition, any person may buy a copy of the transcript from the
transcribing reporter.
D. Submission of Comments
DOE will accept comments, data, and information regarding this
proposed rule before or after the public meeting, but no later than the
date provided in the DATES section at the beginning of this proposed
rule. Interested parties may submit comments, data, and other
information using any of the methods described in the ADDRESSES section
at the beginning of this document.
Submitting comments via www.regulations.gov. The
www.regulations.gov web page will require you to provide your name and
contact information. Your contact information will be viewable to DOE
Building Technologies staff only. Your contact information will not be
publicly viewable except for your first and last names, organization
name (if any), and submitter representative name (if any). If your
comment is not processed properly because of technical difficulties,
DOE will use this information to contact you. If DOE cannot read your
comment due to technical difficulties and cannot contact you for
clarification, DOE may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment itself or in any documents attached to your
comment. Any information that you do not want to be publicly viewable
should not be included in your comment, nor in any document attached to
your comment. Otherwise, persons viewing comments will see only first
and last names, organization names, correspondence containing comments,
and any documents submitted with the comments.
Do not submit to www.regulations.gov information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (hereinafter referred to as
Confidential Business Information (``CBI'')). Comments submitted
through www.regulations.gov cannot be claimed as CBI. Comments received
through the website will waive any CBI claims for the information
submitted. For information on submitting CBI, see the Confidential
Business Information section.
DOE processes submissions made through www.regulations.gov before
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that www.regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email. Comments and documents submitted via
email also will be posted to www.regulations.gov. If you do not want
your personal contact information to be publicly viewable, do not
include it in your comment or any accompanying
[[Page 78420]]
documents. Instead, provide your contact information in a cover letter.
Include your first and last names, email address, telephone number, and
optional mailing address. The cover letter will not be publicly
viewable as long as it does not include any comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. No telefacsimiles (``faxes'')
will be accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, that are written in English, and that are free of any
defects or viruses. Documents should not contain special characters or
any form of encryption and, if possible, they should carry the
electronic signature of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email two well-marked copies: one copy of the document marked
``confidential'' including all the information believed to be
confidential, and one copy of the document marked ``non-confidential''
with the information believed to be confidential deleted. DOE will make
its own determination about the confidential status of the information
and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
VII. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this
supplemental notice of proposed rulemaking.
List of Subjects
10 CFR Part 433
Buildings and facilities, Energy conservation, Engineers, Federal
buildings and facilities, Fossil fuel reductions, Housing,
Incorporation by reference, Multi-family residential buildings.
10 CFR Part 435
Buildings and facilities, Energy conservation, Engineers, Federal
buildings and facilities, Fossil fuel reductions, Housing,
Incorporation by reference.
Signing Authority
This document of the Department of Energy was signed on December 6,
2022, by Mary Sotos, Director of the Federal Energy Management Program,
pursuant to delegated authority from the Secretary of Energy. That
document with the original signature and date is maintained by DOE. For
administrative purposes only, and in compliance with requirements of
the Office of the Federal Register, the undersigned DOE Federal
Register Liaison Officer has been authorized to sign and submit the
document in electronic format for publication, as an official document
of the Department of Energy. This administrative process in no way
alters the legal effect of this document upon publication in the
Federal Register.
Signed in Washington, DC, on December 9, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
For the reasons set forth in the preamble, DOE proposes to amend
parts 433 and 435 of 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. Amend Sec. 433.1 by adding paragraph (b) 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 or multi-family high-rise residential buildings and
major renovations to Federal buildings that are commercial or multi-
family high-rise residential buildings, for which design for
construction began on or after [Date one year after date of publication
in the Federal Register].
* * * * *
0
3. Amend Sec. 433.2 by:
0
a. Adding in alphabetical order the definitions of ``Construction
cost,'' ``Design for renovation'', ``EISA-subject building or
project'', ``Federal building,'' ``Fiscal year (FY),'' ``Major
renovation,'' ``Major renovation cost,'' ``Major renovation of all
Scope 1 fossil fuel-using systems in a building,'' ``Major renovation
of a Scope 1 fossil fuel-using building system or Scope 1 fossil fuel-
using component,'' and ``Multi-family high-rise residential
building,''.
0
b. Revising the definition of ``Proposed building''; and
0
c. Adding in alphabetical order the definition of ``Scope 1 fossil
fuel-generated energy consumption'', ``Shift adjustment multiplier''
and ``Technical impracticability''.
The additions and revision read as follows:
Sec. 433.2 Definitions.
* * * * *
Construction cost means all costs associated with design and
construction of a Federal 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.
* * * * *
Design for renovation means the stage when the energy efficiency
and sustainability details (such as insulation levels, HVAC systems,
water-using systems, etc.) are either explicitly determined or
implicitly included in a renovation project cost specification.
EISA-subject building or project means, for purposes of this rule,
any new Federal building or renovation project that is subject to the
cost thresholds and reporting requirements in Section 433 of EISA 2007
((42 U.S.C. 6834(a)(3)(D)(i))). The cost threshold referenced in
Section 433 of EISA is $2.5 million in 2007 dollars. GSA provides a
table of annual updates to this cost threshold at https://www.gsa.gov/real-estate/design-and-construction/annual-prospectus-thresholds. GSA
also provides a second cost threshold for renovations of leased
buildings that is \1/2\ of the cost threshold for renovation of
Federally owned buildings.
* * * * *
Federal building as defined in 42 U.S.C. 6832 means 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
[[Page 78421]]
leased by a Federal agency, and privatized military housing.
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 either major renovation of all Scope 1
fossil fuel-generated/consuming systems in a Federal building or major
renovation of one or more Scope 1 fossil fuel-using building systems or
components, as defined in this section.
Major renovation cost means:
(1) Preliminary planning, engineering, architectural, legal,
fiscal, and economic investigations and studies, surveys, designs,
plans, working drawings, specifications, procedures, and other similar
actions necessary for the alteration of a public building; and (2)
Repairing, remodeling, improving, or extending, or other changes in, a
public building as per 40 U.S.C. 3301(a)(1).
Major renovation of all Scope 1 fossil fuel-using systems in a
building means construction on an existing Federal building that is so
extensive that it replaces all Scope 1 fossil fuel-using systems in the
building. This term includes, but is not limited to, comprehensive
replacement or restoration of most or all major systems, interior work
(such as ceilings, partitions, doors, floor finishes, etc.), or
building elements and features.
Major renovation of a Scope 1 fossil fuel-using building system or
Scope 1 fossil fuel-using component means changes to a Federal building
that provide significant opportunities for energy efficiency or
reduction in fossil fuel-related energy consumption. This includes, but
is not limited to, replacement of the HVAC system, hot water system, or
cooking system, or other fossil fuel-using systems or components of the
building that have a major impact on fossil fuel usage.
Multi-family high-rise residential building means a residential
Federal building that contains 3 or more dwelling units and that is
designed to be 4 or more stories above grade.
* * * * *
Proposed building means the design for construction of a new
Federal commercial or multi-family high-rise residential building,
proposed for construction, or a major renovation to a Federal
commercial or multi-family high-rise residential building.
* * * * *
Scope 1 fossil fuel-generated energy consumption means, for
purposes of this proposed rule, the on-site stationary combustion of
fossil fuels that contribute to Scope 1 emissions for generation of
electricity, heat, cooling, or steam as defined by ``Federal Greenhouse
Gas Accounting and Reporting Guidance'' (Council on Environmental
Quality, January 17, 2016), including but not limited to, combustion of
fuels in stationary sources (e.g., boilers, furnaces, turbines, and
emergency generators). This term does not include mobile sources,
fugitive emissions, or process emissions as defined by ``Federal
Greenhouse Gas Accounting and Reporting Guidance'' (Council on
Environmental Quality, January 17, 2016).
Shift adjustment multiplier means that agencies can apply a
multiplication factor to their Maximum Allowable Fossil Fuel-Generated
Energy Consumption by Building Category target based upon the weekly
hours of active operation of the building. The weekly hours of
operation to use as a basis for the shift adjustment multiplier lookup
should be based upon the time in which in the building is actively
occupied and operating per its intended use type and should include
unoccupied hours or other times of limited use (such as night-time
setback hours).
Technical impracticability means achieving the Scope 1 fossil fuel-
generated energy consumption targets would (1) not be feasible from an
engineering design or execution standpoint due to existing physical or
site constraints that prohibit modification or addition of elements or
spaces (2) significantly obstruct building operations and the
functional needs of a building, specifically for industrial process
loads, critical national security functions, mission critical
information systems as defined in NIST SP 800-60 Vol. 2 Rev. 1, and
research operations, or (3) significantly degrade energy resiliency and
energy security of building operations as defined in 10 U.S.C.
101(e)(6) and 10 U.S.C. 101(e)(7) respectively. Upon determination that
complying with the Clean Energy Rule is technically impracticable, the
building is still required to reduce fossil fuel consumption to the
maximum extent practicable. Technical impracticability may include
technology availability and cost considerations but may not be based
solely on cost considerations.
0
4. Amend Sec. 433.3 by revising paragraph (b)(5) to read as follows:
Sec. 433.3 Materials incorporated by reference.
* * * * *
(b) * * *
(5) ANSI/ASHRAE/IES 90.1-2019, (``ASHRAE 90.1-2019''), Energy
Standard for Buildings Except Low-Rise Residential Buildings, I-P
Edition, copyright 2019, IBR approved for Sec. Sec. 433.2, 433.100,
433.101, 433.201 and appendix A to this subpart.
0
5. Subpart B is added to part 433 to read as follows:
Subpart B--Reduction in Scope 1 Fossil Fuel-Generated Energy
Consumption
Sec.
433.200 Scope 1 Fossil fuel-generated energy consumption
requirement.
433.201 Scope 1 Fossil fuel-generated energy consumption
determination.
433.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 433--Maximum Allowable Scope 1
Fossil Fuel-Generated Energy Consumption
Sec. 433.200 Scope 1 Fossil fuel-generated energy consumption
requirement.
(a) New EISA-Subject buildings. (1) New Federal buildings that are
commercial or multi-family high-rise residential buildings, for which
design for construction began on or after December 21, 2023, 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). See GSA Annual Prospectus Thresholds at
www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds.
(2) Reserved.
(b) Major renovations of EISA-Subject buildings. (1) Major
renovations to Federal buildings that are commercial or multi-family
high-rise residential buildings, for which design for construction
began on or after December 21, 2023, 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 of a Federally owned building
is at least $2,500,000 (in 2007 dollars, adjusted for inflation). The
cost of a major renovation for a Federally leased building is at least
$1,250,000 (in 2007 dollars). See GSA Annual Prospectus Thresholds at
www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds.
(2) This subpart only applies to major renovations that meet the
major renovation of all scope 1 fossil fuel-using systems in a Federal
building or the major renovation of a scope 1 fossil fuel-using
building system or scope 1
[[Page 78422]]
fossil fuel-using component definition in Sec. 433.2.
(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.
(4) 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 renovations permits compliance with
the applicable requirements of this subpart. Unaltered portions of the
proposed building or proposed building systems are not required to
comply with this subpart.
(c) Federal buildings that are of the type included in Appendix A
of this subpart.
(1) New Construction and Major Renovations of all Scope 1 Fossil
Fuel-Using Systems in EISA-Subject Buildings.
(i) Design for construction began during fiscal year 2024 through
fiscal year 2029. For new construction or major renovations of all
Scope 1 fossil-fuel using systems in a Federal building for which
design for construction or renovation, as applicable, began during
fiscal year 2024 through 2029, the Scope 1 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 A-1a to A-2a (if targets based on emissions are
used) or Tables A-1b to A-2b (if targets based on kBtu of fossil fuel
usage are used) of appendix A of this subpart for the associated
building type, climate zone, and fiscal year in which design for
construction began.
(A) Federal agencies may apply a shift adjustment multiplier to the
values in Tables A-1a to A-2a or Tables A-1b to A-2b based on the
following baseline hours of operation assumed in Tables A-1a to A-2a or
Tables A-1b to A-2b.
(B) To calculate the shift adjustment multiplier, agencies shall
estimate the number of shifts for their new building and multiply by
the appropriate factor shown below in Table VII.1 of this section for
their building type. The Scope 1 fossil fuel-generated energy
consumption target for the building would be the value in either Tables
A-1a to A-2a or Tables A-1b to A-2b multiplied by the multiplier
calculated in the previous sentence.
Table VII.1--Shift Adjustment Multiplier by Hours of Operation and Building Type
----------------------------------------------------------------------------------------------------------------
Weekly hours of operation
Building activity/type -----------------------------------------------
50 or less 51 to 167 168
----------------------------------------------------------------------------------------------------------------
Admin/professional office....................................... 1 1 1.4
Bank/other financial............................................ 1 1 1.4
Government office............................................... 1 1 1.4
Medical office (non-diagnostic)................................. 1 1 1.4
Mixed-use office................................................ 1 1 1.4
Other office.................................................... 1 1 1.4
Laboratory...................................................... 1 1 1.4
Distribution/shipping center.................................... 0.7 1.4 2.1
Nonrefrigerated warehouse....................................... 0.7 1.4 2.1
Convenience store............................................... 1 1 1.4
Convenience store with gas...................................... 1 1 1.4
Grocery store/food market....................................... 1 1 1.4
Other food sales................................................ 1 1 1.4
Fire station/police station..................................... 0.8 0.8 1.1
Other public order and safety................................... 0.8 0.8 1.1
Medical office (diagnostic)..................................... 1 1 1.5
Clinic/other outpatient health.................................. 1 1 1.5
Refrigerated warehouse.......................................... 1 1 1
Religious worship............................................... 0.9 1.7 1.7
Entertainment/culture........................................... 0.8 1.5 1.5
Library......................................................... 0.8 1.5 1.5
Recreation...................................................... 0.8 1.5 1.5
Social/meeting.................................................. 0.8 1.5 1.5
Other public assembly........................................... 0.8 1.5 1.5
College/university.............................................. 0.8 1.3 1.3
Elementary/middle school........................................ 0.8 1.3 1.3
High school..................................................... 0.8 1.3 1.3
Preschool/daycare............................................... 0.8 1.3 1.3
Other classroom education....................................... 0.8 1.3 1.3
Fast food....................................................... 0.4 1.1 2.1
Restaurant/cafeteria............................................ 0.4 1.1 2.1
Other food service.............................................. 0.4 1.1 2.1
Hospital/inpatient health....................................... 1 1 1
Nursing home/assisted living.................................... 1 1 1
Dormitory/fraternity/sorority................................... 1 1 1
Hotel........................................................... 1 1 1
Motel or inn.................................................... 1 1 1
Other lodging................................................... 1 1 1
Vehicle dealership/showroom..................................... 0.8 1.2 1.8
Retail store.................................................... 0.8 1.2 1.8
Other retail.................................................... 0.8 1.2 1.8
Post office/postal center....................................... 0.7 1.5 1.5
Repair shop..................................................... 0.7 1.5 1.5
Vehicle service/repair shop..................................... 0.7 1.5 1.5
Vehicle storage/maintenance..................................... 0.7 1.5 1.5
Other service................................................... 0.7 1.5 1.5
[[Page 78423]]
Strip shopping mall............................................. 1 1 1
Enclosed mall................................................... 1 1 1
Bar/Pub/Lounge.................................................. 1 1 1.4
Courthouse/Probation Office..................................... 1 1 1.4
----------------------------------------------------------------------------------------------------------------
(ii) Design for construction began during or after fiscal year
2030. For new construction or major renovations of all fossil fuel-
using systems in an EISA-Subject building for which design for
construction or renovation, as applicable, began during or after fiscal
year 2030, the Scope 1 fossil fuel-generated energy consumption of the
proposed building, based on building design and calculated according to
Sec. 433.201(a), must be zero.
(2) Major Renovations of a Federal Building System or Component
within an EISA-Subject Building. System level renovations shall follow
the renovation requirements in section 4.2.1.3 of the applicable
building baseline energy efficiency standards listed in Sec. 433.100
substituting the ``design for construction'' with ``design for
renovation'' for the relevant date and shall replace all equipment that
is included in the renovation with all electric or non-fossil fuel
using ENERGY STAR or Federal Energy Management Program (FEMP)
designated products as defined in Sec. 436.42. For component level
renovations, Agencies shall replace all equipment that is part of the
renovation with all electric or non-fossil fuel using ENERGY STAR or
FEMP designated products as defined in Sec. 436.42.
(3) Mixed-use buildings. (i) For Federal buildings subject to the
requirements of paragraph (c)(1) of this section that combine two or
more building types identified in Tables 1a to 2a or Tables 1b to 2b 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 A-1a to A-2a or Tables A-1b
to A-2b weighted by floor area of the two or more building types. The
equation which follows shall be used for mixed use buildings.
Equation 1: Scope 1 Fossil fuel-generated energy consumption for a
mixed-use building = the sum across all building uses of (the fraction
of total floor building floor area for building use i times the
allowable fossil fuel-generated energy consumption for building use i)
Equation 1 may be rewritten as:
Scope 1 Fossil Fuel-Generated Energy Consumption for a Mixed Use
Building = [Sigma]ni=1 (Fraction of Total Building Floor
Area for Building Use i times Allowable Scope 1 Fossil Fuel-Generated
Energy Consumption for Building Use).
(ii) For example, if a proposed building for which design for
construction began in FY2026 that is to be built in climate zone 4a 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 Scope 1 fossil fuel-generated energy
consumption is equal to:
[(100 sqft. x 3 kBtu/yr.-sqft.) + (100 sqft x 10 kBtu/yr.-sqft.)]/200
sqft. = 6.5 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 A-1a to A-2a or
A-1b to A-2b of appendix A of this subpart, or for building types in
these tables that contain significant process loads that are not likely
to be found in the Commercial Buildings Energy Consumption Survey
(CBECS) and qualify for exemption per Sec. 433.202, Federal agencies
must select the applicable building type, climate zone, and fiscal year
in which design for construction began from Tables 1a to 2a or 1b to 2b
of appendix A of this subpart that most closely corresponds to the
proposed building without the process load. The estimated Scope 1
fossil fuel-generated energy consumption of the process load must be
added to the maximum allowable Scope 1 fossil fuel-generated energy
consumption of the applicable building type for the appropriate fiscal
year and climate zone to calculate the maximum allowable Scope 1 fossil
fuel-generated energy consumption for the building. The same estimated
Scope 1 fossil fuel-generated energy consumption of the process load
that is added to the maximum allowable Scope 1 fossil fuel-generated
energy consumption of the applicable building must also be used in
determining the Scope 1 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 A-1a to A-2a or A-1b to A-2b of appendix A of this
subpart, the maximum allowable Scope 1 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 A-1a to A-2a or A-1b
to A-2b of appendix A of this subpart, weighted by floor area.
Sec. 433.201 Scope 1 Fossil fuel-generated energy consumption
determination.
(a) The fossil fuel-generated energy consumption of a proposed
building is calculated as follows:
Equation 2: Fossil fuel-generated energy consumption = Direct Scope 1
Fossil Fuel-Generated Consumption of Proposed Building/Floor Area
Where:
Direct Scope 1 Fossil Fuel-Generated Energy Consumption of Proposed
Building equals the total Scope 1 fossil fuel-generated energy
consumption of the proposed building calculated in accordance with
the Performance Rating Method in Appendix G of ASHRAE 90.1-2019
(incorporated by reference; see Sec. 433.3) and measured in
thousands of British thermal units per year (kBtu/yr), except that
this term does not include fossil fuel consumption for emergency
electricity generation. Agencies must include all on-site fossil
fuel use or Scope 1 emissions associated with non-emergency
generation from backup generators (such as those for peak shaving or
peak shifting). Any energy generation or Scope 1 emissions
associated with biomass fuels are excluded. Any emissions associated
with natural gas for alternatively fueled vehicles (``AFVs'') (or
any other alternative fuel defined at 42 U.S.C. 13211 that is
provided at a Federal
[[Page 78424]]
building) is excluded. Buildings with manufacturing or industrial
process loads should be accounted for in the analysis for the
building's fossil fuel consumption and GHG emissions but are not
subject to the phase down targets.
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.
Sec. 433.202 Petition for downward adjustment.
(a) New Federal buildings and major renovations of all Scope 1
fossil fuel-using systems in an EISA-subject building. (1) Upon
petition by a Federal agency the Director of FEMP may adjust the
applicable maximum allowable Scope 1 fossil fuel-generated energy
consumption standard with respect to a specific building, upon written
certification from the head of the agency designing the building, that
the requested adjustment is the largest feasible reduction in Scope 1
fossil fuel energy 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 to the maximum extent practicable and that each
fossil fuel consuming product included in the proposed building that is
of a product category covered by the ENERGY STAR program or FEMP for
designated products is an ENERGY STAR product or a product meeting the
FEMP designation criteria, as applicable;
(ii) A description of the systems, technologies, and practices that
were evaluated and unable to meet the required fossil fuel reduction
including a justification of why achieving the Scope 1 fossil fuel-
generated energy consumption targets would be technically
impracticable: and
(iii) Any other information the agency determines would help
explain its request;
(2) The head of the agency designing the building, 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, expected number of
occupants and occupant schedule, project type, project cost, and
functional needs, mission critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1 fossil fuel energy consumption
for the building from Sec. 433.200(c) or (d);
(iii) The estimated Scope 1 fossil fuel energy consumption of the
proposed building;
(iv) A description of the proposed building's energy-related
features, including but not limited to:
(A) HVAC system type and configuration;
(B) HVAC equipment sizes and efficiencies;
(C) Ventilation systems (including outdoor air volume, controls
technique, heat recovery systems, and economizers, if applicable);
(D) Service water heating system configuration and equipment
(including solar hot water, wastewater heat recovery, and controls for
circulating hot water systems, if applicable);
(E) Estimated industrial process loads; and
(F) Any other on-site fossil fuel consuming equipment.
(3) Petitions for downward adjustment should be submitted to [email protected], or to: U.S. Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE-5F, 1000 Independence Ave. SW,
Washington, DC 20585-0121.
(4) The Director of FEMP will make a best effort to notify the
requesting agency in writing whether the petition for downward
adjustment to the numeric reduction requirement is approved or
rejected, in 45 calendar days of submittal, provided that the petition
is complete. 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 of a Scope 1 fossil fuel-using building
system or Scope 1 fossil fuel-using component. (1) Upon petition by a
Federal agency, the Director of FEMP may adjust the applicable
requirements for the Federal agency to reduce Scope 1 on-site fossil
fuel-generated energy consumption standard with respect to a specific
renovation, upon written certification from the head of the agency
designing the renovation, that the requested adjustment is the largest
feasible reduction in Scope 1 fossil fuel energy 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
renovation incorporates commercially available systems and/or
components that provide a level of energy efficiency that is life-cycle
cost effective as defined in this part and reduces consumption of Scope
1 fossil fuel energy to the maximum extent practicable and that each
fossil fuel consuming product included in the proposed building that is
of a product category covered by the ENERGY STAR program or FEMP for
designated products is an ENERGY STAR product or a product meeting the
FEMP designation criteria, as applicable.
(ii) A description of the systems, technologies, and practices that
were evaluated and unable to meet the required fossil fuel reduction
including a justification of why achieving the Scope 1 fossil fuel-
generated energy consumption targets would be technically
impracticable: and
(iii) Any other information the agency determines would help
explain its request.
(2) The head of the agency making the design decisions for the
building, 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, estimated number of
occupants and occupant schedule, project type, project cost, and
functional needs, mission critical activity, research, and national
security operations, as applicable;
(ii) The maximum allowable Scope 1 fossil fuel energy consumption
for the building from Sec. 433.200(c) or (d);
(iii) The estimated Scope 1 fossil fuel energy consumption of the
building;
(iv) A description of system(s) or component(s) that are being
renovated, including but not limited to:
(A) HVAC system or component type and configuration;
(B) HVAC equipment sizes and efficiencies;
(C) Ventilation systems or components (including outdoor air
volume, controls technique, heat recovery systems, and economizers, if
applicable);
(D) Service water heating system or component configuration and
equipment (including solar hot water, wastewater heat recovery, and
controls for circulating hot water systems, if applicable);
(E) Estimated process loads; and
(F) Any other on-site fossil fuel consuming equipment.
(3) Petitions for downward adjustment should be submitted to [email protected], or to: U.S. Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE-5F, 1000 Independence Ave. SW,
Washington, DC 20585-0121.
(4) The Director will make a best effort to notify the requesting
agency in writing whether the petition for downward adjustment to the
numeric reduction requirement is approved or
[[Page 78425]]
rejected, in 45 calendar days of submittal for major renovations of a
buildings system, and 20 calendar days for major renovations of a
component, granted the petition is complete. If the Director rejects
the petition, the Director will forward its reasons for rejection to
the petitioning agency.
(c) Exclusions. The General Services Administration (GSA) may not
submit petitions under paragraphs (a) and (b) of this section. Agencies
that are tenants of GSA buildings for which the agency, not GSA, has
significant design control may submit petitions in accordance with this
section.
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 90.1-2019 (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).
[[Page 78426]]
Table A-1a--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
[CO2e/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building category Climate zone: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type...... Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Education....................... College/university. 0.21 0.22 0.23 0.28 0.35 0.33 0.47 0.42 0.47 0.61 0.59 0.60 0.76 0.72 0.64 0.89 0.89 1.04 1.39
Education....................... Elementary/middle 0.33 0.34 0.36 0.44 0.54 0.51 0.73 0.65 0.73 0.95 0.92 0.94 1.19 1.13 1.01 1.38 1.39 1.63 2.17
school.
Education....................... High school........ 0.02 0.02 0.06 0.17 0.34 0.29 0.62 0.50 0.62 0.96 0.90 0.94 1.33 1.22 1.04 1.62 1.63 1.99 2.82
Education....................... Other classroom 0.13 0.13 0.14 0.16 0.20 0.19 0.27 0.25 0.27 0.36 0.35 0.35 0.45 0.42 0.38 0.52 0.52 0.61 0.82
education.
Education....................... Preschool/daycare.. 0.30 0.31 0.33 0.40 0.49 0.46 0.66 0.59 0.66 0.87 0.83 0.85 1.08 1.02 0.92 1.26 1.26 1.48 1.97
Enclosed Mall................... Enclosed mall...... 0.35 0.35 0.38 0.46 0.57 0.54 0.76 0.68 0.76 1.00 0.96 0.99 1.25 1.18 1.06 1.45 1.46 1.71 2.27
Food Sales...................... Convenience store.. 0.33 0.34 0.36 0.43 0.54 0.51 0.73 0.65 0.73 0.95 0.91 0.94 1.19 1.12 1.00 1.38 1.39 1.62 2.16
Food Sales...................... Convenience store 0.24 0.24 0.26 0.31 0.39 0.36 0.52 0.46 0.52 0.68 0.65 0.67 0.85 0.80 0.72 0.98 0.99 1.16 1.54
with gas station.
Food Sales...................... Grocery store/food 0.35 0.36 0.38 0.46 0.58 0.54 0.77 0.69 0.78 1.01 0.97 1.00 1.27 1.20 1.07 1.47 1.48 1.73 2.30
market.
Food Sales...................... Other food sales... 1.09 1.11 1.18 1.43 1.78 1.68 2.38 2.13 2.39 3.12 3.00 3.08 3.91 3.69 3.30 4.54 4.56 5.33 7.11
Food Service.................... Fast food.......... 2.06 2.09 2.23 2.70 3.37 3.16 4.50 4.02 4.51 5.90 5.67 5.82 7.39 6.97 6.24 8.56 8.60 10.06 13.41
Food Service.................... Other food service. 0.27 0.27 0.29 0.35 0.44 0.41 0.59 0.52 0.59 0.77 0.74 0.76 0.96 0.91 0.81 1.11 1.12 1.31 1.74
Food Service.................... Restaurant/ 1.47 1.49 1.59 1.92 2.40 2.25 3.21 2.87 3.21 4.20 4.04 4.15 5.26 4.96 4.44 6.10 6.13 7.17 9.56
cafeteria.
Inpatient Health Care........... Hospital/inpatient 1.06 1.08 1.13 1.31 1.56 1.48 1.99 1.81 2.00 2.53 2.44 2.50 3.10 2.93 2.66 3.54 3.56 4.12 5.40
health.
Laboratory...................... Laboratory......... 0.79 0.80 0.85 1.03 1.28 1.21 1.72 1.53 1.72 2.25 2.16 2.22 2.82 2.66 2.38 3.26 3.28 3.83 5.11
Lodging......................... Dormitory/ 0.51 0.51 0.55 0.66 0.83 0.78 1.10 0.99 1.11 1.45 1.39 1.43 1.81 1.71 1.53 2.10 2.11 2.47 3.29
fraternity/
sorority.
Lodging......................... Hotel.............. 0.46 0.47 0.50 0.60 0.75 0.71 1.00 0.90 1.01 1.32 1.26 1.30 1.65 1.55 1.39 1.91 1.92 2.24 2.99
Lodging......................... Motel or inn....... 0.60 0.61 0.65 0.78 0.98 0.92 1.31 1.17 1.31 1.71 1.65 1.69 2.14 2.02 1.81 2.49 2.50 2.92 3.90
Lodging......................... Other lodging...... 0.23 0.24 0.25 0.30 0.38 0.36 0.51 0.45 0.51 0.66 0.64 0.65 0.83 0.78 0.70 0.96 0.97 1.13 1.51
Nursing......................... Nursing home/ 0.82 0.83 0.88 1.07 1.33 1.25 1.78 1.60 1.79 2.34 2.25 2.31 2.93 2.76 2.47 3.39 3.41 3.99 5.32
assisted living.
Office.......................... Administra tive/ 0.30 0.31 0.33 0.39 0.49 0.46 0.66 0.59 0.66 0.86 0.83 0.85 1.08 1.02 0.91 1.25 1.26 1.47 1.96
professional
office.
Office.......................... Bank/other 0.18 0.19 0.20 0.24 0.30 0.28 0.40 0.36 0.40 0.53 0.50 0.52 0.66 0.62 0.56 0.76 0.77 0.90 1.19
financial.
Office.......................... Government office.. 0.31 0.31 0.33 0.40 0.50 0.47 0.67 0.60 0.67 0.88 0.84 0.87 1.10 1.04 0.93 1.27 1.28 1.50 2.00
Office.......................... Medical office (non- 0.34 0.35 0.37 0.45 0.56 0.52 0.74 0.66 0.74 0.97 0.94 0.96 1.22 1.15 1.03 1.41 1.42 1.66 2.21
diagnostic).
Office.......................... Mixed-use office... 0.26 0.27 0.28 0.34 0.43 0.40 0.58 0.51 0.58 0.75 0.72 0.74 0.94 0.89 0.80 1.10 1.10 1.29 1.72
Office.......................... Other office....... 0.40 0.40 0.43 0.52 0.65 0.61 0.86 0.77 0.87 1.13 1.09 1.12 1.42 1.34 1.20 1.64 1.65 1.93 2.58
Outpatient Health Care.......... Clinic/other 0.25 0.25 0.27 0.33 0.41 0.38 0.55 0.49 0.55 0.71 0.69 0.71 0.90 0.84 0.76 1.04 1.04 1.22 1.63
outpatient health.
Outpatient Health Care.......... Medical office 0.27 0.27 0.29 0.35 0.44 0.41 0.58 0.52 0.59 0.77 0.74 0.76 0.96 0.90 0.81 1.11 1.12 1.31 1.74
(diagnostic).
Public Assembly................. Entertainment/ 0.20 0.20 0.21 0.25 0.32 0.30 0.43 0.38 0.43 0.56 0.54 0.55 0.70 0.66 0.59 0.81 0.81 0.95 1.27
culture.
Public Assembly................. Library............ 0.23 0.24 0.25 0.30 0.38 0.36 0.51 0.45 0.51 0.67 0.64 0.66 0.83 0.79 0.70 0.97 0.97 1.14 1.51
Public Assembly................. Other public 0.23 0.24 0.25 0.31 0.38 0.36 0.51 0.46 0.51 0.67 0.64 0.66 0.84 0.79 0.71 0.97 0.97 1.14 1.52
assembly.
Public Assembly................. Recreation......... 0.24 0.24 0.26 0.31 0.39 0.37 0.53 0.47 0.53 0.69 0.66 0.68 0.86 0.81 0.73 1.00 1.00 1.17 1.57
Public Assembly................. Social/meeting..... 0.30 0.30 0.32 0.39 0.49 0.46 0.65 0.58 0.65 0.85 0.82 0.84 1.06 1.00 0.90 1.23 1.24 1.45 1.93
Public Order & Safety........... Fire station/police 0.54 0.55 0.58 0.70 0.88 0.83 1.17 1.05 1.18 1.54 1.48 1.52 1.93 1.82 1.63 2.23 2.25 2.62 3.50
station.
Public Order & Safety........... Other public order 0.26 0.27 0.29 0.35 0.43 0.40 0.58 0.52 0.58 0.75 0.73 0.74 0.95 0.89 0.80 1.10 1.10 1.29 1.72
and safety.
Religious Worship............... Religious worship.. 0.24 0.24 0.26 0.31 0.39 0.37 0.52 0.47 0.52 0.68 0.66 0.67 0.85 0.81 0.72 0.99 1.00 1.16 1.55
Retail (except malls)........... Other retail....... 0.40 0.40 0.43 0.52 0.65 0.61 0.86 0.77 0.86 1.13 1.09 1.12 1.42 1.34 1.20 1.64 1.65 1.93 2.57
Retail (except malls)........... Retail store....... 0.01 0.01 0.04 0.11 0.22 0.18 0.40 0.32 0.40 0.62 0.58 0.61 0.85 0.79 0.67 1.04 1.05 1.28 1.81
Retail (except malls)........... Vehicle dealership/ 0.56 0.57 0.60 0.73 0.91 0.86 1.22 1.09 1.22 1.60 1.54 1.58 2.00 1.89 1.69 2.32 2.33 2.72 3.63
showroom.
Service......................... Other service...... 0.58 0.59 0.63 0.76 0.95 0.89 1.27 1.13 1.27 1.66 1.60 1.64 2.08 1.96 1.76 2.41 2.42 2.83 3.78
Service......................... Post office/postal 0.24 0.25 0.26 0.32 0.40 0.37 0.53 0.47 0.53 0.69 0.67 0.69 0.87 0.82 0.73 1.01 1.01 1.19 1.58
center.
Service......................... Repair shop........ 0.18 0.18 0.20 0.24 0.30 0.28 0.40 0.35 0.40 0.52 0.50 0.51 0.65 0.61 0.55 0.75 0.76 0.89 1.18
Service......................... Vehicle service/ 0.37 0.37 0.39 0.48 0.60 0.56 0.80 0.71 0.80 1.04 1.00 1.03 1.31 1.23 1.10 1.51 1.52 1.78 2.37
repair shop.
Service......................... Vehicle storage/ 0.29 0.30 0.31 0.38 0.47 0.45 0.63 0.57 0.64 0.83 0.80 0.82 1.04 0.98 0.88 1.21 1.21 1.42 1.89
maintenance.
Strip Shopping Mall............. Strip shopping mall 0.35 0.35 0.38 0.45 0.57 0.53 0.76 0.68 0.76 0.99 0.96 0.98 1.25 1.17 1.05 1.44 1.45 1.70 2.26
Warehouse....................... Distribution/ 0.20 0.20 0.21 0.26 0.32 0.31 0.43 0.39 0.44 0.57 0.55 0.56 0.71 0.67 0.60 0.83 0.83 0.97 1.29
shipping center.
Warehouse....................... Non-refrigerated 0.19 0.19 0.20 0.25 0.31 0.29 0.41 0.37 0.41 0.54 0.52 0.53 0.68 0.64 0.57 0.78 0.79 0.92 1.23
warehouse.
Warehouse....................... Refrigerated 0.03 0.04 0.04 0.05 0.06 0.05 0.08 0.07 0.08 0.10 0.10 0.10 0.12 0.12 0.11 0.14 0.15 0.17 0.23
warehouse.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 78427]]
Table A-1b--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: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building type......... Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Education.......................... College/university.... 2 2 2 3 3 3 4 4 4 6 5 5 7 7 6 8 8 9 13
Education.......................... Elementary/middle 3 3 3 4 5 5 7 6 7 9 8 9 11 10 9 13 13 15 20
school.
Education.......................... High school........... 0 0 1 2 3 3 6 5 6 9 8 9 12 11 9 15 15 18 26
Education.......................... Other classroom 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 5 5 6 7
education.
Education.......................... Preschool/daycare..... 3 3 3 4 4 4 6 5 6 8 8 8 10 9 8 11 11 13 18
Enclosed Mall...................... Enclosed mall......... 3 3 3 4 5 5 7 6 7 9 9 9 11 11 10 13 13 15 21
Food Sales......................... Convenience store..... 3 3 3 4 5 5 7 6 7 9 8 9 11 10 9 13 13 15 20
Food Sales......................... Convenience store with 2 2 2 3 4 3 5 4 5 6 6 6 8 7 7 9 9 10 14
gas station.
Food Sales......................... Grocery store/food 3 3 3 4 5 5 7 6 7 9 9 9 12 11 10 13 13 16 21
market.
Food Sales......................... Other food sales...... 10 10 11 13 16 15 22 19 22 28 27 28 36 33 30 41 41 48 64
Food Service....................... Fast food............. 19 19 20 24 31 29 41 37 41 54 51 53 67 63 57 78 78 91 122
Food Service....................... Other food service.... 2 2 3 3 4 4 5 5 5 7 7 7 9 8 7 10 10 12 16
Food Service....................... Restaurant/cafeteria.. 13 14 14 17 22 20 29 26 29 38 37 38 48 45 40 55 56 65 87
Inpatient Health Care.............. Hospital/inpatient 10 10 10 12 14 13 18 16 18 23 22 23 28 27 24 32 32 37 49
health.
Laboratory......................... Laboratory............ 7 7 8 9 12 11 16 14 16 20 20 20 26 24 22 30 30 35 46
Lodging............................ Dormitory/fraternity/ 5 5 5 6 7 7 10 9 10 13 13 13 16 16 14 19 19 22 30
sorority.
Lodging............................ Hotel................. 4 4 5 5 7 6 9 8 9 12 11 12 15 14 13 17 17 20 27
Lodging............................ Motel or inn.......... 5 6 6 7 9 8 12 11 12 16 15 15 19 18 16 23 23 27 35
Lodging............................ Other lodging......... 2 2 2 3 3 3 5 4 5 6 6 6 8 7 6 9 9 10 14
Nursing............................ Nursing home/assisted 7 8 8 10 12 11 16 14 16 21 20 21 27 25 22 31 31 36 48
living.
Office............................. Administrative/ 3 3 3 4 4 4 6 5 6 8 8 8 10 9 8 11 11 13 18
professional office.
Office............................. Bank/other financial.. 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 8 11
Office............................. Government office..... 3 3 3 4 5 4 6 5 6 8 8 8 10 9 8 12 12 14 18
Office............................. Medical office (non- 3 3 3 4 5 5 7 6 7 9 8 9 11 10 9 13 13 15 20
diagnostic).
Office............................. Mixed-use office...... 2 2 3 3 4 4 5 5 5 7 7 7 9 8 7 10 10 12 16
Office............................. Other office.......... 4 4 4 5 6 6 8 7 8 10 10 10 13 12 11 15 15 18 23
Outpatient Health Care............. Clinic/other 2 2 2 3 4 3 5 4 5 6 6 6 8 8 7 9 9 11 15
outpatient health.
Outpatient Health Care............. Medical office 2 2 3 3 4 4 5 5 5 7 7 7 9 8 7 10 10 12 16
(diagnostic).
Public Assembly.................... Entertainment/culture. 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 9 11
Public Assembly.................... Library............... 2 2 2 3 3 3 5 4 5 6 6 6 8 7 6 9 9 10 14
Public Assembly.................... Other public assembly. 2 2 2 3 3 3 5 4 5 6 6 6 8 7 6 9 9 10 14
Public Assembly.................... Recreation............ 2 2 2 3 4 3 5 4 5 6 6 6 8 7 7 9 9 11 14
Public Assembly.................... Social/meeting........ 3 3 3 4 4 4 6 5 6 8 7 8 10 9 8 11 11 13 18
Public Order & Safety.............. Fire station/police 5 5 5 6 8 7 11 10 11 14 13 14 17 16 15 20 20 24 32
station.
Public Order & Safety.............. Other public order and 2 2 3 3 4 4 5 5 5 7 7 7 9 8 7 10 10 12 16
safety.
Religious Worship.................. Religious worship..... 2 2 2 3 4 3 5 4 5 6 6 6 8 7 7 9 9 11 14
Retail (except malls).............. Other retail.......... 4 4 4 5 6 6 8 7 8 10 10 10 13 12 11 15 15 17 23
Retail (except malls).............. Retail store.......... 0 0 0 1 2 2 4 3 4 6 5 5 8 7 6 9 9 12 16
Retail (except malls).............. Vehicle dealership/ 5 5 5 7 8 8 11 10 11 14 14 14 18 17 15 21 21 25 33
showroom.
Service............................ Other service......... 5 5 6 7 9 8 12 10 12 15 14 15 19 18 16 22 22 26 34
Service............................ Post office/postal 2 2 2 3 4 3 5 4 5 6 6 6 8 7 7 9 9 11 14
center.
Service............................ Repair shop........... 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 8 11
Service............................ Vehicle service/repair 3 3 4 4 5 5 7 6 7 9 9 9 12 11 10 14 14 16 22
shop.
Service............................ Vehicle storage/ 3 3 3 3 4 4 6 5 6 8 7 7 9 9 8 11 11 13 17
maintenance.
Strip Shopping Mall................ Strip shopping mall... 3 3 3 4 5 5 7 6 7 9 9 9 11 11 10 13 13 15 21
Warehouse.......................... Distribution/shipping 2 2 2 2 3 3 4 4 4 5 5 5 6 6 5 7 8 9 12
center.
Warehouse.......................... Non-refrigerated 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 8 11
warehouse.
Warehouse.......................... Refrigerated warehouse 0 0 0 0 1 0 1 1 1 1 1 1 1 1 1 1 1 2 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 78428]]
Table A-2a--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
[CO2e/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building category Climate zone: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building Type......... Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Education.......................... College/university.... 0.11 0.11 0.12 0.14 0.17 0.16 0.23 0.21 0.23 0.30 0.29 0.30 0.38 0.36 0.32 0.44 0.44 0.52 0.69
Education.......................... Elementary/middle 0.17 0.17 0.18 0.22 0.27 0.26 0.36 0.33 0.36 0.48 0.46 0.47 0.60 0.56 0.50 0.69 0.70 0.81 1.08
school.
Education.......................... High school........... 0.01 0.01 0.03 0.09 0.17 0.14 0.31 0.25 0.31 0.48 0.45 0.47 0.66 0.61 0.52 0.81 0.81 0.99 1.41
Education.......................... Other classroom 0.06 0.06 0.07 0.08 0.10 0.10 0.14 0.12 0.14 0.18 0.17 0.18 0.22 0.21 0.19 0.26 0.26 0.31 0.41
education.
Education.......................... Preschool/daycare..... 0.15 0.15 0.16 0.20 0.25 0.23 0.33 0.30 0.33 0.43 0.42 0.43 0.54 0.51 0.46 0.63 0.63 0.74 0.98
Enclosed Mall...................... Enclosed mall......... 0.17 0.18 0.19 0.23 0.29 0.27 0.38 0.34 0.38 0.50 0.48 0.49 0.63 0.59 0.53 0.73 0.73 0.85 1.14
Food Sales......................... Convenience store..... 0.17 0.17 0.18 0.22 0.27 0.25 0.36 0.32 0.36 0.48 0.46 0.47 0.60 0.56 0.50 0.69 0.69 0.81 1.08
Food Sales......................... Convenience store with 0.12 0.12 0.13 0.15 0.19 0.18 0.26 0.23 0.26 0.34 0.33 0.33 0.42 0.40 0.36 0.49 0.49 0.58 0.77
gas station.
Food Sales......................... Grocery store/food 0.18 0.18 0.19 0.23 0.29 0.27 0.39 0.35 0.39 0.51 0.49 0.50 0.63 0.60 0.54 0.74 0.74 0.86 1.15
market.
Food Sales......................... Other food sales...... 0.55 0.55 0.59 0.71 0.89 0.84 1.19 1.07 1.19 1.56 1.50 1.54 1.96 1.85 1.65 2.27 2.28 2.66 3.55
Food Service....................... Fast food............. 1.03 1.05 1.11 1.35 1.68 1.58 2.25 2.01 2.26 2.95 2.83 2.91 3.69 3.48 3.12 4.28 4.30 5.03 6.71
Food Service....................... Other food service.... 0.13 0.14 0.14 0.18 0.22 0.21 0.29 0.26 0.29 0.38 0.37 0.38 0.48 0.45 0.41 0.56 0.56 0.65 0.87
Food Service....................... Restaurant/cafeteria.. 0.74 0.75 0.79 0.96 1.20 1.13 1.60 1.43 1.61 2.10 2.02 2.07 2.63 2.48 2.22 3.05 3.06 3.58 4.78
Inpatient Health Care.............. Hospital/inpatient 0.53 0.54 0.56 0.65 0.78 0.74 1.00 0.91 1.00 1.26 1.22 1.25 1.55 1.47 1.33 1.77 1.78 2.06 2.70
health.
Laboratory......................... Laboratory............ 0.39 0.40 0.42 0.51 0.64 0.60 0.86 0.77 0.86 1.12 1.08 1.11 1.41 1.33 1.19 1.63 1.64 1.92 2.56
Lodging............................ Dormitory/fraternity/ 0.25 0.26 0.27 0.33 0.41 0.39 0.55 0.49 0.55 0.72 0.70 0.71 0.91 0.85 0.76 1.05 1.06 1.23 1.65
sorority.
Lodging............................ Hotel................. 0.23 0.23 0.25 0.30 0.38 0.35 0.50 0.45 0.50 0.66 0.63 0.65 0.82 0.78 0.70 0.96 0.96 1.12 1.50
Lodging............................ Motel or inn.......... 0.30 0.30 0.32 0.39 0.49 0.46 0.65 0.58 0.66 0.86 0.82 0.84 1.07 1.01 0.91 1.24 1.25 1.46 1.95
Lodging............................ Other lodging......... 0.12 0.12 0.13 0.15 0.19 0.18 0.25 0.23 0.25 0.33 0.32 0.33 0.42 0.39 0.35 0.48 0.48 0.57 0.75
Nursing............................ Nursing home/assisted 0.41 0.42 0.44 0.53 0.67 0.63 0.89 0.80 0.89 1.17 1.12 1.15 1.46 1.38 1.24 1.70 1.71 1.99 2.66
living.
Office............................. Administrative/ 0.15 0.15 0.16 0.20 0.25 0.23 0.33 0.29 0.33 0.43 0.41 0.43 0.54 0.51 0.46 0.63 0.63 0.74 0.98
professional office.
Office............................. Bank/other financial.. 0.09 0.09 0.10 0.12 0.15 0.14 0.20 0.18 0.20 0.26 0.25 0.26 0.33 0.31 0.28 0.38 0.38 0.45 0.60
Office............................. Government office..... 0.15 0.16 0.17 0.20 0.25 0.24 0.33 0.30 0.34 0.44 0.42 0.43 0.55 0.52 0.46 0.64 0.64 0.75 1.00
Office............................. Medical office (non- 0.17 0.17 0.18 0.22 0.28 0.26 0.37 0.33 0.37 0.49 0.47 0.48 0.61 0.58 0.51 0.71 0.71 0.83 1.11
diagnostic).
Office............................. Mixed-use office...... 0.13 0.13 0.14 0.17 0.22 0.20 0.29 0.26 0.29 0.38 0.36 0.37 0.47 0.45 0.40 0.55 0.55 0.64 0.86
Office............................. Other office.......... 0.20 0.20 0.21 0.26 0.32 0.30 0.43 0.39 0.43 0.57 0.54 0.56 0.71 0.67 0.60 0.82 0.83 0.97 1.29
Outpatient Health Care............. Clinic/other 0.13 0.13 0.13 0.16 0.20 0.19 0.27 0.24 0.27 0.36 0.34 0.35 0.45 0.42 0.38 0.52 0.52 0.61 0.81
outpatient health.
Outpatient Health Care............. Medical office 0.13 0.14 0.14 0.18 0.22 0.21 0.29 0.26 0.29 0.38 0.37 0.38 0.48 0.45 0.41 0.56 0.56 0.65 0.87
(diagnostic).
Public Assembly.................... Entertainment/culture. 0.10 0.10 0.11 0.13 0.16 0.15 0.21 0.19 0.21 0.28 0.27 0.27 0.35 0.33 0.29 0.40 0.41 0.48 0.63
Public Assembly.................... Library............... 0.12 0.12 0.13 0.15 0.19 0.18 0.25 0.23 0.25 0.33 0.32 0.33 0.42 0.39 0.35 0.48 0.49 0.57 0.76
Public Assembly.................... Other public assembly. 0.12 0.12 0.13 0.15 0.19 0.18 0.25 0.23 0.26 0.33 0.32 0.33 0.42 0.39 0.35 0.49 0.49 0.57 0.76
Public Assembly.................... Recreation............ 0.12 0.12 0.13 0.16 0.20 0.18 0.26 0.23 0.26 0.34 0.33 0.34 0.43 0.41 0.36 0.50 0.50 0.59 0.78
Public Assembly.................... Social/meeting........ 0.15 0.15 0.16 0.19 0.24 0.23 0.32 0.29 0.33 0.42 0.41 0.42 0.53 0.50 0.45 0.62 0.62 0.72 0.97
Public Order & Safety.............. Fire station/police 0.27 0.27 0.29 0.35 0.44 0.41 0.59 0.53 0.59 0.77 0.74 0.76 0.96 0.91 0.81 1.12 1.12 1.31 1.75
station.
Public Order & Safety.............. Other public order and 0.13 0.13 0.14 0.17 0.22 0.20 0.29 0.26 0.29 0.38 0.36 0.37 0.47 0.45 0.40 0.55 0.55 0.64 0.86
safety.
Religious Worship.................. Religious worship..... 0.12 0.12 0.13 0.16 0.19 0.18 0.26 0.23 0.26 0.34 0.33 0.34 0.43 0.40 0.36 0.50 0.50 0.58 0.78
Retail (except malls).............. Other retail.......... 0.20 0.20 0.21 0.26 0.32 0.30 0.43 0.39 0.43 0.57 0.54 0.56 0.71 0.67 0.60 0.82 0.82 0.96 1.29
Retail (except malls).............. Retail store.......... 0.01 0.01 0.02 0.06 0.11 0.09 0.20 0.16 0.20 0.31 0.29 0.30 0.43 0.39 0.34 0.52 0.52 0.64 0.90
Retail (except malls).............. Vehicle dealership/ 0.28 0.28 0.30 0.37 0.46 0.43 0.61 0.55 0.61 0.80 0.77 0.79 1.00 0.94 0.84 1.16 1.17 1.36 1.82
showroom.
Service............................ Other service......... 0.29 0.29 0.31 0.38 0.47 0.45 0.63 0.57 0.64 0.83 0.80 0.82 1.04 0.98 0.88 1.21 1.21 1.42 1.89
Service............................ Post office/postal 0.12 0.12 0.13 0.16 0.20 0.19 0.27 0.24 0.27 0.35 0.33 0.34 0.44 0.41 0.37 0.50 0.51 0.59 0.79
center.
Service............................ Repair shop........... 0.09 0.09 0.10 0.12 0.15 0.14 0.20 0.18 0.20 0.26 0.25 0.26 0.33 0.31 0.27 0.38 0.38 0.44 0.59
Service............................ Vehicle service/repair 0.18 0.19 0.20 0.24 0.30 0.28 0.40 0.36 0.40 0.52 0.50 0.51 0.65 0.62 0.55 0.76 0.76 0.89 1.19
shop.
Service............................ Vehicle storage/ 0.15 0.15 0.16 0.19 0.24 0.22 0.32 0.28 0.32 0.42 0.40 0.41 0.52 0.49 0.44 0.60 0.61 0.71 0.95
maintenance.
Strip Shopping Mall................ Strip shopping mall... 0.17 0.18 0.19 0.23 0.28 0.27 0.38 0.34 0.38 0.50 0.48 0.49 0.62 0.59 0.53 0.72 0.73 0.85 1.13
Warehouse.......................... Distribution/shipping 0.10 0.10 0.11 0.13 0.16 0.15 0.22 0.19 0.22 0.28 0.27 0.28 0.36 0.34 0.30 0.41 0.41 0.49 0.65
center.
Warehouse.......................... Non-refrigerated 0.09 0.10 0.10 0.12 0.15 0.14 0.21 0.18 0.21 0.27 0.26 0.27 0.34 0.32 0.29 0.39 0.39 0.46 0.61
warehouse.
Warehouse.......................... Refrigerated warehouse 0.02 0.02 0.02 0.02 0.03 0.03 0.04 0.03 0.04 0.05 0.05 0.05 0.06 0.06 0.05 0.07 0.07 0.08 0.11
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 78429]]
Table A-2b--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
[Site kBtu/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building category Climate zone: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building Type......... Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Education.......................... College/university.... 1 1 1 1 2 1 2 2 2 3 3 3 3 3 3 4 4 5 6
Education.......................... Elementary/middle 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5 6 6 7 10
school.
Education.......................... High school........... 0 0 0 1 2 1 3 2 3 4 4 4 6 6 5 7 7 9 13
Education.......................... Other classroom 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 4
education.
Education.......................... Preschool/daycare..... 1 1 1 2 2 2 3 3 3 4 4 4 5 5 4 6 6 7 9
Enclosed Mall...................... Enclosed mall......... 2 2 2 2 3 2 3 3 3 5 4 4 6 5 5 7 7 8 10
Food Sales......................... Convenience store..... 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5 6 6 7 10
Food Sales......................... Convenience store with 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 4 4 5 7
gas station.
Food Sales......................... Grocery store/food 2 2 2 2 3 2 4 3 4 5 4 5 6 5 5 7 7 8 10
market.
Food Sales......................... Other food sales...... 5 5 5 6 8 8 11 10 11 14 14 14 18 17 15 21 21 24 32
Food Service....................... Fast food............. 9 9 10 12 15 14 20 18 20 27 26 26 34 32 28 39 39 46 61
Food Service....................... Other food service.... 1 1 1 2 2 2 3 2 3 3 3 3 4 4 4 5 5 6 8
Food Service....................... Restaurant/cafeteria.. 7 7 7 9 11 10 15 13 15 19 18 19 24 23 20 28 28 33 43
Inpatient Health Care.............. Hospital/inpatient 5 5 5 6 7 7 9 8 9 11 11 11 14 13 12 16 16 19 24
health.
Laboratory......................... Laboratory............ 4 4 4 5 6 5 8 7 8 10 10 10 13 12 11 15 15 17 23
Lodging............................ Dormitory/fraternity/ 2 2 2 3 4 4 5 4 5 7 6 6 8 8 7 10 10 11 15
sorority.
Lodging............................ Hotel................. 2 2 2 3 3 3 5 4 5 6 6 6 7 7 6 9 9 10 14
Lodging............................ Motel or inn.......... 3 3 3 4 4 4 6 5 6 8 7 8 10 9 8 11 11 13 18
Lodging............................ Other lodging......... 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 4 4 5 7
Nursing............................ Nursing home/assisted 4 4 4 5 6 6 8 7 8 11 10 10 13 13 11 15 15 18 24
living.
Office............................. Administrative/ 1 1 1 2 2 2 3 3 3 4 4 4 5 5 4 6 6 7 9
professional office.
Office............................. Bank/other financial.. 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 4 5
Office............................. Government office..... 1 1 2 2 2 2 3 3 3 4 4 4 5 5 4 6 6 7 9
Office............................. Medical office (non- 2 2 2 2 3 2 3 3 3 4 4 4 6 5 5 6 6 8 10
diagnostic).
Office............................. Mixed-use office...... 1 1 1 2 2 2 3 2 3 3 3 3 4 4 4 5 5 6 8
Office............................. Other office.......... 2 2 2 2 3 3 4 4 4 5 5 5 6 6 5 7 7 9 12
Outpatient Health Care............. Clinic/other 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 5 5 6 7
outpatient health.
Outpatient Health Care............. Medical office 1 1 1 2 2 2 3 2 3 3 3 3 4 4 4 5 5 6 8
(diagnostic).
Public Assembly.................... Entertainment/culture. 1 1 1 1 1 1 2 2 2 3 2 2 3 3 3 4 4 4 6
Public Assembly.................... Library............... 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 4 4 5 7
Public Assembly.................... Other public assembly. 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 4 4 5 7
Public Assembly.................... Recreation............ 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 5 5 5 7
Public Assembly.................... Social/meeting........ 1 1 1 2 2 2 3 3 3 4 4 4 5 5 4 6 6 7 9
Public Order & Safety.............. Fire station/police 2 2 3 3 4 4 5 5 5 7 7 7 9 8 7 10 10 12 16
station.
Public Order & Safety.............. Other public order and 1 1 1 2 2 2 3 2 3 3 3 3 4 4 4 5 5 6 8
safety.
Religious Worship.................. Religious worship..... 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 4 5 5 7
Retail (except malls).............. Other retail.......... 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 9 12
Retail (except malls).............. Retail store.......... 0 0 0 1 1 1 2 1 2 3 3 3 4 4 3 5 5 6 8
Retail (except malls).............. Vehicle dealership/ 3 3 3 3 4 4 6 5 6 7 7 7 9 9 8 11 11 12 16
showroom.
Service............................ Other service......... 3 3 3 3 4 4 6 5 6 8 7 7 9 9 8 11 11 13 17
Service............................ Post office/postal 1 1 1 1 2 2 2 2 2 3 3 3 4 4 3 5 5 5 7
center.
Service............................ Repair shop........... 1 1 1 1 1 1 2 2 2 2 2 2 3 3 2 3 3 4 5
Service............................ Vehicle service/repair 2 2 2 2 3 3 4 3 4 5 5 5 6 6 5 7 7 8 11
shop.
Service............................ Vehicle storage/ 1 1 1 2 2 2 3 3 3 4 4 4 5 4 4 5 6 6 9
maintenance.
Strip Shopping Mall................ Strip shopping mall... 2 2 2 2 3 2 3 3 3 5 4 4 6 5 5 7 7 8 10
Warehouse.......................... Distribution/shipping 1 1 1 1 1 1 2 2 2 3 2 3 3 3 3 4 4 4 6
center.
Warehouse.......................... Non-refrigerated 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 4 4 4 6
warehouse.
Warehouse.......................... Refrigerated warehouse 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 1
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[[Page 78430]]
PART 435--ENERGY EFFICIENCY STANDARDS FOR THE DESIGN AND
CONSTRUCTION OF NEW FEDERAL LOW-RISE RESIDENTIAL BUILDINGS
0
6. 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
7. Amend Sec. 435.1, by adding paragraph (b) 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 December 21, 2023.
* * * * *
0
8. Amend Sec. 435.2 by:
0
a. Adding in alphabetical order, the definitions of ``Construction
cost,'' ``Design for renovation'', ``EISA-subject building or
project'', ``Federal building,'' ``Fiscal year (FY),'' ``Major
renovation,'' ``Major renovation cost,'' ``Major renovation of all
Scope fossil fuel-using systems in a building,'' and ``Major renovation
of a Scope 1 fossil fuel-using building system or Scope 1 fossil fuel-
using component'';
0
b. Revising the definitions of ``Proposed building''; and
0
c. Adding in alphabetical order, the definitions of ``Scope 1 fossil
fuel-generated energy consumption'' and ``Shift adjustment multiplier''
and ``Technical impracticability''.
The additions and revision read as follows:
Sec. 435.2 Definitions.
* * * * *
Construction cost means all costs associated with design and
construction of a Federal 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.
* * * * *
Design for renovation means the stage when the energy efficiency
and sustainability details (such as insulation levels, HVAC systems,
water-using systems, etc.) are either explicitly determined or
implicitly included in a renovation project cost specification.
* * * * *
EISA-subject building or project means, for purposes of this rule,
any new building or renovation project that is subject to the cost
thresholds and reporting requirements in Section 433 of EISA 2007 ((42
U.S.C. 6834(a)(3)(D)(i))). The cost threshold referenced in Section 433
of EISA is $2.5 million in 2007 dollars. GSA provides a table of annual
updates to this cost threshold at https://www.gsa.gov/real-estate/design-and-construction/annual-prospectus-thresholds. GSA also provides
a second cost threshold for renovations of leased buildings that is \1/
2\ of the cost threshold for renovation of Federally owned buildings.
* * * * *
Federal building as defined in 42 U.S.C. 6832 means 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.
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 either major renovation of all Scope 1
fossil fuel-generated/consuming systems in a building or major
renovation of one or more Scope 1 fossil fuel-using building systems or
components, as defined in this section.
Major renovation cost means:
(1) Preliminary planning, engineering, architectural, legal,
fiscal, and economic investigations and studies, surveys, designs,
plans, working drawings, specifications, procedures, and other similar
actions necessary for the alteration of a public building; and (2)
Repairing, remodeling, improving, or extending, or other changes in, a
public building as per 40 U.S.C. 3301(a)(1).
Major renovation of all Scope 1 fossil fuel-using systems in a
building means construction on an existing building that is so
extensive that it replaces all Scope 1 fossil fuel-using systems in the
building. This term includes, but is not limited to, comprehensive
replacement or restoration of most or all major systems, interior work
(such as ceilings, partitions, doors, floor finishes, etc.), or
building elements and features.
Major renovation of a Scope 1 fossil fuel-using building system or
Scope 1 fossil fuel-using component means changes to a building that
provide significant opportunities for energy efficiency or reduction in
fossil fuel-related energy consumption. This includes, but is not
limited to, replacement of the HVAC system, hot water system, or
cooking system, or other fossil fuel-using systems or components of the
building that have a major impact on fossil fuel usage.
* * * * *
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.
Scope 1 fossil fuel-generated energy consumption means, for
purposes of this rule, the on-site stationary combustion of fossil
fuels that contribute to Scope 1 emissions for generation of
electricity, heat, cooling, or steam as defined by ``Federal Greenhouse
Gas Accounting and Reporting Guidance'' (Council on Environmental
Quality, January 17, 2016). Emissions that result from combustion of
fuels in stationary sources (e.g., boilers, furnaces, turbines, and
emergency generators). This term does not include mobile sources,
fugitive emissions, or process emissions as defined by ``Federal
Greenhouse Gas Accounting and Reporting Guidance'' (Council on
Environmental Quality, January 17, 2016).
Shift adjustment multiplier means that agencies can apply a
multiplication factor to their Maximum Allowable Fossil Fuel-Generated
Energy Consumption by Building Category target based upon the weekly
hours of active operation of the building. The weekly hours of
operation to use as a basis for the shift adjustment multiplier lookup
should be based upon the time in which in the building is actively
occupied and operating per its intended use type and should include
unoccupied hours or other times of limited use (such as night-time
setback hours).
Technical impracticability means achieving the Scope 1 fossil fuel-
generated energy consumption targets would--
(1) Not be feasible from an engineering design or execution
standpoint due to existing physical or site constraints that prohibit
modification or addition of elements or spaces,
(2) Significantly obstruct building operations and the functional
needs of a building, specifically for industrial process loads,
critical national security functions, mission critical information
systems as defined in NIST SP 800-60 Vol. 2 Rev. 1, and research
operations, or
(3) Significantly degrade energy resiliency and energy security of
building operations as defined in 10 U.S.C. 101(e)(6) and 10 U.S.C.
101(e)(7) respectively. Upon determination that
[[Page 78431]]
complying with the Clean Energy Rule is technically impracticable, the
building is still required to reduce fossil fuel consumption to the
maximum extent practicable. Technical impracticability may include
technology availability and cost considerations but may not be based
solely on cost considerations.
0
9. Amend Sec. 435.3 by revising paragraph (b)(4) to read as follows:
Sec. 435.3 Materials incorporated by reference.
* * * * *
(b) * * *
(4) ICC 2021 International Energy Conservation Code (IECC), Redline
Version, Copyright 2021, (``IECC 2021''), IBR approved for Sec. Sec.
435.2, 435.5, 435.201, and appendix A to this subpart.
0
10. Section 435.4 is revised 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 10 CFR 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 FEMP (NIST 85-3273).
0
11. Subpart B is added to part 435 to read as follows:
Subpart B--Reduction in Scope 1 Fossil Fuel-Generated Energy
Consumption
Sec.
435.200 Scope 1 Fossil fuel-generated energy consumption
requirement.
435.201 Scope 1 Fossil fuel-generated energy consumption
determination.
435.202 Petition for downward adjustment.
Appendix A to Subpart B of Part 435--Maximum Allowable Scope 1
Fossil Fuel-Generated Energy Consumption
Sec. 435.200 Scope 1 Fossil fuel-generated energy consumption
requirement.
(a) New EISA-Subject buildings. (1) New Federal buildings that are
low-rise residential buildings, for which design for construction began
on or after [Date one year after date of publication in the Federal
Register], 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). See GSA Annual Prospectus
Thresholds at www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds.
(b) Major renovations of EISA-Subject buildings. (1) Major
renovations to Federal buildings that are low-rise residential
buildings, for which design for construction began on or after [Date
one year after date of publication in the Federal Register], 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) New Construction and Major Renovations of all
Scope 1 Fossil Fuel-Using Systems in an EISA-Subject Building.
(i) Design for construction began during fiscal year 2024 through
fiscal year 2029. For new construction or major renovations of all
fossil fuel-using systems in an EISA-subject building, for which design
for construction or renovation, as applicable, began during fiscal year
2024 through 2029, the Scope 1 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 A-1a to A-2a (if targets based on Scope 1 emissions are used) or
Tables A-1b to A-2b (if targets based on kBtu of fossil fuel usage are
used) of Appendix A of this subpart for the associated building type,
climate zone, and fiscal year in which design for construction began.
(A) Federal agencies may apply a shift adjustment multiplier to the
values in Tables A-1a to A-2a or Tables A-1b to A-2b based on the
following baseline hours of operation assumed in Tables A-1a to A-2a or
Tables A-1b to A-2b.
(B) To calculate the shift adjustment multiplier, agencies shall
estimate the number of shifts for their new building and multiply by
the appropriate factor shown below in Table 1 for their building type.
The Scope 1 fossil fuel-generated energy consumption target for the
building would be the value in either Tables A-1a to A-2a or Tables A-
1b to A-2b multiplied by the multiplier calculated in the previous
sentence.
Table VII.2--Shift Adjustment Multiplier by Hours of Operation and
Building Type
------------------------------------------------------------------------
Weekly hours of operation
--------------------------------
Building activity/type 50 or
less 51 to 167 168
------------------------------------------------------------------------
Admin/professional office.............. 1 1 1.4
Bank/other financial................... 1 1 1.4
Government office...................... 1 1 1.4
Medical office (non-diagnostic)........ 1 1 1.4
Mixed-use office....................... 1 1 1.4
Other office........................... 1 1 1.4
Laboratory............................. 1 1 1.4
Distribution/shipping center........... 0.7 1.4 2.1
Nonrefrigerated warehouse.............. 0.7 1.4 2.1
Convenience store...................... 1 1 1.4
Convenience store with gas............. 1 1 1.4
Grocery store/food market.............. 1 1 1.4
Other food sales....................... 1 1 1.4
Fire station/police station............ 0.8 0.8 1.1
Other public order and safety.......... 0.8 0.8 1.1
Medical office (diagnostic)............ 1 1 1.5
Clinic/other outpatient health......... 1 1 1.5
[[Page 78432]]
Refrigerated warehouse................. 1 1 1
Religious worship...................... 0.9 1.7 1.7
Entertainment/culture.................. 0.8 1.5 1.5
Library................................ 0.8 1.5 1.5
Recreation............................. 0.8 1.5 1.5
Social/meeting......................... 0.8 1.5 1.5
Other public assembly.................. 0.8 1.5 1.5
College/university..................... 0.8 1.3 1.3
Elementary/middle school............... 0.8 1.3 1.3
High school............................ 0.8 1.3 1.3
Preschool/daycare...................... 0.8 1.3 1.3
Other classroom education.............. 0.8 1.3 1.3
Fast food.............................. 0.4 1.1 2.1
Restaurant/cafeteria................... 0.4 1.1 2.1
Other food service..................... 0.4 1.1 2.1
Hospital/inpatient health.............. 1 1 1
Nursing home/assisted living........... 1 1 1
Dormitory/fraternity/sorority.......... 1 1 1
Hotel.................................. 1 1 1
Motel or inn........................... 1 1 1
Other lodging.......................... 1 1 1
Vehicle dealership/showroom............ 0.8 1.2 1.8
Retail store........................... 0.8 1.2 1.8
Other retail........................... 0.8 1.2 1.8
Post office/postal center.............. 0.7 1.5 1.5
Repair shop............................ 0.7 1.5 1.5
Vehicle service/repair shop............ 0.7 1.5 1.5
Vehicle storage/maintenance............ 0.7 1.5 1.5
Other service.......................... 0.7 1.5 1.5
Strip shopping mall.................... 1 1 1
Enclosed mall.......................... 1 1 1
Bar/Pub/Lounge......................... 1 1 1.4
Courthouse/Probation Office............ 1 1 1.4
------------------------------------------------------------------------
(ii) Design for construction began during or after fiscal year
2030. For new construction and major renovations of all Scope 1 fossil
fuel-using systems in an EISA-subject building, the Scope 1 fossil
fuel-generated energy consumption of the proposed building, based on
building design and calculated according to Sec. 435.201(a), must be
zero.
(2) Major Renovations of a Scope 1 Fossil Fuel-Using Building
System or Scope 1 fossil fuel-using Component within an EISA-Subject
Building shall follow the renovation requirements in section 4.2.1.3 of
the applicable building baseline energy efficiency standards listed in
Sec. 435.4 substituting the term ``design for construction'' with
``design for renovation'' for the relevant date, and shall replace all
equipment that is included in the renovation with all electric or non-
fossil fuel using ENERGY STAR or FEMP designated products as defined in
Sec. 436.42. For component level renovations, Agencies shall replace
all equipment that is part of the renovation with all electric or non-
fossil fuel using ENERGY STAR or FEMP designated products as defined in
Sec. 436.42.
(d) EISA-Subject 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 A-1a to A-2a or A-1b to A-2b of appendix A of this subpart, or
for building types in these tables that contain significant process
loads, Federal agencies must select the applicable building type,
climate zone, and fiscal year in which design for construction began
from Tables A-1a to A-2a or A-1b to A-2b of appendix A of this subpart
that most closely corresponds to the proposed building without the
process load. The estimated Scope 1 fossil fuel-generated energy
consumption of the process load must be added to the maximum allowable
Scope 1 fossil fuel-generated energy consumption of the applicable
building type for the appropriate fiscal year and climate zone to
calculate the maximum allowable Scope 1 fossil fuel-generated energy
consumption for the building. The same estimated Scope 1 fossil fuel-
generated energy consumption of the process load that is added to the
maximum allowable Scope 1 fossil fuel-generated energy consumption of
the applicable building must also be used in determining the Scope 1
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 A-1a to A-2a or A-1b to A-2b of appendix A of this
subpart, the maximum allowable Scope 1 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 A-1a to A-2a or A-1b
to A-2b of appendix A of this subpart, weighted by floor area. Equation
1 shall be used for mixed use buildings.
Equation 1: Scope 1 Fossil fuel generated energy consumption for a
mixed-use building = the sum across all building uses of (the fraction
of total floor building floor area for building use i times the
allowable fossil fuel-generated energy consumption for building use i)
[[Page 78433]]
Equation 2 may be rewritten as:
Scope 1 Fossil Fuel-Generated Energy Consumption for a Mixed Use
Building = [Sigma]ni=1
(Fraction of Total Building Floor Area for Building Use i times
Allowable Scope 1 Fossil Fuel-Generated Energy Consumption for Building
Use).
Sec. 435.201 Scope 1 Fossil fuel-generated energy consumption
determination.
(a) The Scope 1 fossil fuel-generated energy consumption of a
proposed design is calculated as follows:
Equation: Scope 1 Fossil Fuel-Generated Energy Consumption = Direct
Fossil Fuel Consumption of Proposed Building/Floor Area
Where:
Direct Scope 1 Fossil Fuel-Generated Energy Consumption of Proposed
Building equals the total site Scope 1 fossil fuel-generated energy
consumption of the proposed building calculated in accordance with
the Simulated Performance Alternative in Section 405 of the IECC
2021 (incorporated by reference; see Sec. 435.3), and measured in
thousands of British thermal units per year (kBtu/yr), except that
this term does not include fossil fuel consumption for emergency
electricity generation. Agencies must include all on-site fossil
fuel use or Scope 1 emissions associated with non-emergency
generation from backup generators (such as those for peak shaving or
peak shifting). Any energy generation or Scope 1 emissions
associated with biomass fuels are excluded. Any emissions associated
with natural gas for alternatively fueled vehicles (``AFVs'') (or
any other alternative fuel defined at 42 U.S.C. 13211 that is
provided at a Federal building) is excluded. Buildings with
manufacturing or industrial process loads should be accounted for in
the analysis for the building's fossil fuel consumption and GHG
emissions but are not subject to the phase down targets.
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.
Sec. 435.202 Petition for downward adjustment.
(a) New Federal buildings and major renovations of all Scope 1
fossil fuel-using systems in an EISA-subject building. (1) Upon
petition by a Federal agency the Director of FEMP may adjust the
applicable maximum allowable Scope 1 fossil fuel energy consumption
standard with respect to a specific building, upon written
certification from the head of the agency designing the building, that
the requested adjustment is the largest feasible reduction in Scope 1
fossil fuel energy 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 requirements to the maximum extent practicable and that each
fossil fuel consuming product included in the proposed building that is
of a product category covered by the ENERGY STAR program or FEMP for
designated products is an ENERGY STAR product or a product meeting the
FEMP designation criteria, as applicable;
(ii) A description of the systems, technologies, and practices that
were evaluated and unable to meet the required fossil fuel reduction
including a justification of why achieving the Scope 1 fossil fuel-
generated energy consumption targets would be technically
impracticable: and
(iii) Any other information the agency determines would help
explain its request;
(2) The head of the agency designing the building, 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, expected number of
occupants and occupant schedule, project type, project cost, and
functional needs, mission critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1 fossil fuel energy consumption
for the building from paragraphs (c) or (d) of this section;
(iii) The estimated Scope 1 fossil fuel energy consumption of the
proposed building;
(iv) A description of the proposed building's energy-related
features, including but not limited to:
(A) HVAC system type and configuration;
(B) HVAC equipment sizes and efficiencies;
(C) Ventilation systems (including outdoor air volume, controls
technique, heat recovery systems, and economizers, if applicable);
(D) Service water heating system configuration and equipment
(including solar hot water, wastewater heat recovery, and controls for
circulating hot water systems, if applicable);
(E) Estimated industrial process loads; and
(F) Any other on-site fossil fuel consuming equipment.
(3) Petitions for downward adjustment should be submitted to [email protected], or to: U.S. Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE-5F, 1000 Independence Ave. SW,
Washington, DC 20585-0121.
(4) The Director will make a best effort to notify the requesting
agency in writing whether the petition for downward adjustment to the
numeric reduction requirement is approved or rejected, in 45 calendar
days of submittal, granted the petition is complete. 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 of a Scope 1 fossil fuel-using building
system or Scope 1 fossil fuel-using component. (1) Upon petition by a
Federal agency, the Director of FEMP may adjust the applicable
requirements for the Federal agency to reduce Scope 1 on-site fossil
fuel-generated energy consumption standard with respect to a specific
renovation, upon written certification from the head of the agency
designing the renovation, that the requested adjustment is the largest
feasible reduction in Scope 1 fossil fuel energy 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
renovation incorporates commercially available systems and/or
components that provide a level of energy efficiency that is life-cycle
cost effective as defined in this part and reduces consumption of Scope
1 fossil fuel energy consumption to the maximum extent practicable and
that each fossil fuel consuming product included in the proposed
building that is of a product category covered by the ENERGY STAR
program or FEMP for designated products is an ENERGY STAR product or a
product meeting the FEMP designation criteria, as applicable.
(ii) A description of the systems, technologies, and practices that
were evaluated and unable to meet the required fossil fuel reduction
including a justification of why achieving the Scope 1 fossil fuel-
generated energy consumption targets would be technically
impracticable: and
(iii) Any other information the agency determines would help
explain its request.
(2) The head of the agency making the design decisions for the
building, must
[[Page 78434]]
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, estimated number of
occupants and occupant schedule, project type, project cost, and
functional needs, mission critical activity, research, and national
security operations as applicable;
(ii) The maximum allowable Scope 1 fossil fuel energy consumption
for the building from Sec. 435.200(c) or (d);
(iii) The estimated Scope 1 fossil fuel energy consumption of the
building;
(iv) A description of system(s) or component(s) that are being
renovated, including but not limited to:
(A) HVAC system or component type and configuration;
(B) HVAC equipment sizes and efficiencies;
(C) Ventilation systems or components (including outdoor air
volume, controls technique, heat recovery systems, and economizers, if
applicable);
(D) Service water heating system or component configuration and
equipment (including solar hot water, wastewater heat recovery, and
controls for circulating hot water systems, if applicable);
(E) Estimated process loads; and
(F) Any other on-site fossil fuel consuming equipment.
(3) Petitions for downward adjustment should be submitted to [email protected], or to: U.S. Department of Energy, FEMP, Director,
Fossil Fuel Reduction Petitions, EE-5F, 1000 Independence Ave. SW,
Washington, DC 20585-0121.
(4) The Director will make a best effort to notify the requesting
agency in writing whether the petition for downward adjustment to the
numeric reduction requirement is approved or rejected, in 45 calendar
days of submittal for major renovations of a buildings system, and 20
calendar days for major renovations of a component, granted the
petition is complete. If the Director rejects the petition, the
Director will forward its reasons for rejection to the petitioning
agency.
(c) Exclusions. The General Services Administration (GSA) may not
submit petitions under paragraphs (a) and (b) of this section. Agencies
that are tenants of GSA buildings for which the agency, not GSA, has
significant design control may submit petitions in accordance with this
section.
Appendix A to Subpart B of Part 435 Maximum Allowable Scope 1 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 2021 (incorporated by reference; see Sec.
435.3).
(b) For purpose of appendix A, the following definitions apply:
Mobile 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.
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 mobile homes.
[[Page 78435]]
Table A-1a--FY2020-FY2024 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[CO2e/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building category Climate zone: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building activity/type.. Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Residential...................... Mobile.................. 0.66 0.67 0.68 0.73 0.80 0.78 0.92 0.76 0.87 0.92 1.07 1.05 1.06 1.23 1.19 1.11 1.36 1.36 1.51
Residential...................... Single-family detached.. 0.40 0.41 0.41 0.45 0.50 0.48 0.58 0.47 0.55 0.58 0.69 0.67 0.68 0.79 0.76 0.71 0.88 0.88 0.99
Residential...................... Single-family attached.. 0.76 0.76 0.77 0.78 0.80 0.79 0.83 0.79 0.82 0.83 0.87 0.87 0.87 0.92 0.90 0.88 0.95 0.95 0.99
Residential...................... Multi-family (in 2-4- 0.56 0.57 0.61 0.74 0.93 0.87 1.25 0.83 1.11 1.25 1.64 1.58 1.62 2.06 1.95 1.74 2.40 2.41 2.82
unit building).
Residential...................... Multi-family (in 5+ unit 0.24 0.25 0.29 0.42 0.61 0.55 0.93 0.51 0.80 0.93 1.32 1.26 1.30 1.74 1.63 1.42 2.08 2.09 2.50
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table A-1b--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: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building Activity/Type.. Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Residential...................... Mobile.................. 6 6 6 7 7 7 8 7 8 8 10 10 10 11 11 10 12 12 14
Residential...................... Single-family detached.. 4 4 4 4 5 4 5 4 5 5 6 6 6 7 7 6 8 8 9
Residential...................... Single-family attached.. 7 7 7 7 7 7 8 7 7 8 8 8 8 8 8 8 9 9 9
Residential...................... Multi-family (in 2-4- 5 5 6 7 8 8 11 8 10 11 15 14 15 19 18 16 22 22 26
unit building).
Residential...................... Multi-family (in 5+ unit 2 2 3 4 6 5 8 5 7 8 12 11 12 16 15 13 19 19 23
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table A-2a--FY2025-FY2029 Maximum Allowable Fossil Fuel-Generated Energy Consumption by Building Category, Building Type and Climate Zone, Residential Buildings
[CO2e/yr-sqft]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building category Climate zone: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building Activity/Type.. Fossil fuel-generated energy use intensity (CO2e/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Residential...................... Mobile.................. 0.33 0.34 0.37 0.40 0.39 0.46 0.38 0.44 0.46 0.54 0.52 0.53 0.62 0.59 0.55 0.68 0.68 0.76 0.33
Residential...................... Single-family detached.. 0.20 0.21 0.22 0.25 0.24 0.29 0.24 0.27 0.29 0.34 0.33 0.34 0.40 0.38 0.35 0.44 0.44 0.50 0.20
Residential...................... Single-family attached.. 0.38 0.38 0.39 0.40 0.40 0.42 0.39 0.41 0.42 0.44 0.43 0.44 0.46 0.45 0.44 0.47 0.48 0.50 0.38
Residential...................... Multi-family (in 2-4- 0.28 0.30 0.37 0.46 0.44 0.62 0.41 0.56 0.63 0.82 0.79 0.81 1.03 0.97 0.87 1.20 1.20 1.41 0.28
unit building).
Residential...................... Multi-family (in 5+ unit 0.13 0.14 0.21 0.30 0.28 0.46 0.25 0.40 0.47 0.66 0.63 0.65 0.87 0.81 0.71 1.04 1.04 1.25 0.13
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table A-2b-FY2025-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: 0A 0B 1A 1B 2A 2B 3A 3B 3C 4A 4B 4C 5A 5B 5C 6A 6B 7 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Building Activity/Type.. Fossil fuel-generated energy use intensity (site kBtu/yr-sqft)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Residential...................... Mobile.................. 3 3 3 3 4 4 4 3 4 4 5 5 5 6 5 5 6 6 7
Residential...................... Single-family detached.. 2 2 2 2 2 2 3 2 2 3 3 3 3 4 3 3 4 4 4
Residential...................... Single-family attached.. 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5
Residential...................... Multi-family (in 2-4- 3 3 3 3 4 4 6 4 5 6 7 7 7 9 9 8 11 11 13
unit building).
Residential...................... Multi-family (in 5+ unit 1 1 1 2 3 3 4 2 4 4 6 6 6 8 7 6 9 9 11
building).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 78436]]
[FR Doc. 2022-27098 Filed 12-20-22; 8:45 pm]
BILLING CODE 6450-01-P