This regulatory impact statement, regulatory flexibility analysis, rural area flexibility analysis and/or job impact statement
pertain(s) to a notice of proposed rule making, I.D. No. DOS-02-07-00009-P, printed in the State Register on Jan. 10, 2007.
Summary of Revised Regulatory Impact Statement
1. STATUTORY AUTHORITY
Energy Law Section 11-103(2) authorizes the State Fire Prevention and Building Code Council (the “Code Council”) to review and amend the State Energy Conservation Construction Code (the “State Energy Code”), provided the State Energy Code remains cost effective with respect to building construction. Energy Law Section 11-103(2) provides that the State Energy Code is cost effective if the cost of materials and their installation to meet its standards would be equal to or less than the present value of energy savings that could be expected over a 10 year period in a building where such materials are installed.
Energy Law section 11-104 provides that the State Energy Code must be designed to satisfy the following criteria:
• as far as practicable, the State Energy Code's standards and requirements must be formulated in terms of performance objectives;
• to the fullest extent feasible, use of modern technical methods, devices and improvements which tend to minimize consumption of energy and utilize to the greatest extent practical solar and other renewable sources of energy without affecting reasonable requirements for the health, safety and security of the occupants or users of buildings must be permitted;
• as far as practicable, the improvement of energy conservation construction must be encouraged;
• reasonable uniform standards and requirements for construction and construction materials for the improvement of energy conservation construction practices must be provided; and
• property that is listed on the national register of historic places, listed on the State register of historic places, or determined to be eligible for listing on the State register by the Commissioner of Parks, Recreation and Historic Preservation must be exempted from the State Energy Code's uniform standards.
2. LEGISLATIVE OBJECTIVES
Article 11 of the Energy Law, entitled State Energy Conservation Construction Code Act, was first adopted by the State Legislature in 1978. Energy Law section 11-101 directs the adoption of a State Energy Code to protect the health, safety and security of the people of the State and to assure a continuing supply of energy for future generations. Energy Law section 11-101 provides that the State Energy Code must mandate that economically reasonable energy conservation techniques be used in the design and construction of all new public and private buildings in New York State. Energy Law section 11-101 further states that adoption of the State Energy Code is in furtherance of the following policy, as set forth in Energy Law section 3-101(2):
“to encourage conservation of energy in the construction and operation of new commercial, industrial, and residential buildings, and in the rehabilitation of existing structures, through heating, cooling, ventilation, lighting, insulation and design techniques and the use of energy audits and life-cycle costing analysis.”
Pursuant to Energy Law section 11-103(2), the Code Council has reviewed the existing State Energy Code and determined that it no longer adequately effectuates the policies and purposes articulated by the State Legislature when it adopted Article 11 of the Energy Law.
The Code Council proposes to repeal the existing State Energy Code, which is based on text of the 2000 edition of the International Energy Conservation Code, a model code developed and published by the International Conference of Building Officials (“ICBO”), and the 2001 supplement thereto, and replace it with a new State Energy Code, which will be based on the 2003 edition of the International Energy Conservation Code. The revised text will provide for the continued widespread use of modern technical methods and devices and will maintain harmonization of the New York energy conservation regulations with those of other states which use a model energy code. The standardization of the practices, methods and techniques used for energy conservation in New York with the practices, methods and techniques used in other states will maintain and enhance New York State's competitive standing in attracting new business and jobs to the State.
3. NEEDS AND BENEFITS
The proposed rule would amend the State Energy Code by repealing the existing text and adopting new text which, in principal part, consists of provisions developed and published by the International Code Council (the “ICC”) as the International Energy Conservation Code (“IECC”) 2003. Certain modifications have been made to the IECC text to address specific New York needs. The proposed rule will include updated technologies and increase energy conservation requirements for residential and commercial buildings. This will insure that energy efficient construction practices continue to occur within New York State.
One of the primary benefits of the proposed State Energy Code to building owners would be reduced fuel needs and thereby lower operating costs. Reduced energy consumption will have a tremendous positive benefit to New York State by reducing dependence upon imported energy sources and through the reduction of associated emissions and pollutants produced by fossil fuel and electric use.
Further information concerning the needs and benefits of significant provisions of the revised State Energy Code are further discussed in the full Revised Regulatory Impact Statement.
STUDIES WHICH SERVED AS A BASIS FOR THE RULE
Seven studies served as a basis for the rule. These studies are:
A. Climate Classification for Building Energy Codes and Standards, R. S. Briggs, R. G. Lucas and Z. T. Taylor, Pacific Northwest National Laboratory for the United States Department of Energy, March 26, 2002.
B. Eliminating Window-Area Restrictions in the IECC, Z. T. Taylor, C. C. Conner, R. G. Lucas, Pacific Northwest.
C. Comparison of the Supplement to the 2004 IECC to the Current New York Energy Conservation Code — Residential Buildings, R. G. Lucas, Pacific Northwest National Laboratory for the United States Department of Energy, September, 2004.
D. Analysis of IECC 2003 Chiller Heat Recovery for Service Water Heating Requirements for New York State, D. W. Winiarski, Pacific Northwest National Laboratory for the United States Department of Energy, August, 2004.
E. New York State Code Adoption Analysis: Lighting Requirements, E. E. Richman, Pacific Northwest National Laboratory for the United States Department of Energy, June, 2004.
F. Technical Analysis of Residential Energy Code Options for New York State, A. Fisk, B. McVoy and W. Parlapiano, NYSERDA, M. DeWein, Building Codes Assistance Project, et. al., February, 2005.
G. Economic Analysis of Residential Energy Code Options for New York State, S. Nadel, American Council for an Energy-Efficient Economy, March, 2005.
4. COSTS
a. Costs to regulated parties.
Overall, the proposed amendments to the State Energy Code are not expected to result in an increase in the cost of construction in New York State. However, the costs for specific construction subsystems in certain areas of the State are expected to experience modest increases when compliance is demonstrated utilizing prescriptive provisions of the code; the use of software-based compliance paths could eliminate these cost increases. In other cases, provisions that would reduce energy costs actually result in a reduction in construction costs.
Energy Law section 11-103(2) specifies that “the code shall be deemed cost effective if the cost of materials and their installation to meet its standards would be equal to or less than the present value of energy savings that could be expected over a ten-year period in the building in which they are installed.” The additional costs of materials and their installation to achieve conservation improvements required by the proposed rule will result in a payback within ten-years, thereby satisfying the statutory requirement.
Further information concerning costs and significant provisions of the new State Energy Code are further discussed in the full Revised Regulatory Impact Statement.
b. Costs to the Agency, the State and Local Governments for the Implementation and Continuation of the Rule.
It is not anticipated that this rule will place any greater burden on local governments with respect to code enforcement and administration than that which currently exists. Furthermore, the Department of State – Division of Code Enforcement and Administration has a program in place for training local government code enforcement officials. The staff of the Division of Code Enforcement and Administration has undergone training to assist local governments.
Local governments that construct buildings for their own use should experience effects on costs similar to those experienced by private owners, as discussed in part “a” of this Item 4.
The Department of State proposes to enter into a contract with the ICC under which the ICC will provide (1) a license to modify the model codes and to use the modified model code as the new Uniform Code and the new State Energy Code, (2) 4,500 sets of the new codes books for local governments, local governmental officials, and Department of State staff, and (3) examinations and related study materials leading to certification of Department of State staff in a variety of code-enforcement related categories. The contract would also grant the Department of State the option to purchase annual governmental memberships in the ICC for approximately 1,600 local governments in New York State for three years. The sums to be paid under this proposed contract total approximately $1,638,000 over three years, and represent a cost to the Department of State and the State. (This total cost includes approximately $159,110 per year for the optional purchase of governmental memberships. The total cost of this contract would be reduced if the Department of State elects not to exercise its option to purchase governmental memberships in the ICC for any of the three years covered by the contract.)
5. LOCAL GOVERNMENT MANDATES
Adoption of the proposed rule would do nothing to change that basic enforcement and administrative structure of the State Energy Code. Energy Law section 11-107 provides that the State Energy Code will be principally administered and enforced by the cities, towns and villages of New York.
Local government personnel will require training in the details of this rule. The Department of State – Division of Code Enforcement and Administration has a program in place for training local government code enforcement officials. This training will provide knowledge to enable local government to enforce the proposed rule.
6. PAPERWORK
This rule will not impose any additional reporting or record keeping requirements. No additional paperwork is anticipated.
7. DUPLICATION
The proposal does not duplicate, nor is it inconsistent with any existing Federal Law. The Department Of Energy has issued a determination that the 2000 editions of the International Energy Conservation Code (IECC) and ASHRAE Standard 90.1-1999 will improve energy efficiency in residential and commercial buildings. Each state is required to certify to DOE that its energy code mandates that commercial buildings meet the requirements of ASHRAE/IESNA 90.1-1999. The Department of State provided the required certification on March 26, 2004.
Subdivision 3 of Energy Law section 11-103 provides that any regulations of other State agencies pertaining to energy conservation be superseded by the adoption of the State Energy Code.
8. ALTERNATIVES
It is the policy of the Department of State to modernize and amend the State Energy Code and Chapter 11 of the Residential Code regularly, so as to maintain consistency with national model codes, to keep energy construction practices in New York State consistent with practice nationally, and to incorporate new technical developments in a timely manner. Consequently, the alternative of maintaining existing provisions of the State Energy Code was rejected.
Further information concerning alternatives considered concerning significant provisions of the new State Energy Code are further discussed in the full Revised Regulatory Impact Statement.
9. FEDERAL STANDARDS
Title III of the Energy Conservation and Production Act (ECPA), establishes requirements for the Building Energy Standards Program [42 U.S.C. 6831–6837]. Further discussion of these requirements is contained in the full Revised Regulatory Impact Statement.
10. COMPLIANCE SCHEDULE
The target date for publication of a notice of adoption for this rule is between April of 2007 and July of 2007. It is anticipated that the revised State Energy Code will become effective immediately upon publication of the notice of adoption.
