Department of Energy (DOE) Issues a Final Rule on Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings.
On Wednesday, the DOE issued the Final Rule for implementation of Section 433, the Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings Rule, linked here . Section 433 became law in 2007 as part of the Energy Independence and Security Act, which required 100% reduction in fossil fuel use in federal buildings by 2030 with phased reductions beginning in 2010. Until now, DOE failed to meet its statutory timelines laid out in the bill related to phase-down timelines. The newly issued rule requires federal agencies to phase out fossil fuel usage in new federal building construction or major renovation by achieving a 90% reduction in fossil fuel use for new projects started between FY 2025-2029 and eliminating on-site fossil fuel usage in new projects beginning in 2030. AGA believes the rule is in direct contradiction to the statute, which uses the phrase “fossil fuel-generated energy consumption of the buildings” to mean only fossil-fuel generated energy consumed from on-site sources, which is contrary to the plain text, context, and the history of the statute. In the rule, DOE has attempted to focus only on-site energy considerations rather than full fuel cycle, which, in addition to being concerning, adds confusion about the eligibility of hydrogen and possible requirements for proving hydrogen for use in federal property. AGA’s legal team is reviewing the rule for these and other questions about which Department of Defense facilities might be impacted. According to DOE, the rule would increase overall energy consumption and likely greenhouse gas emissions. The federal building energy standards in this final rule are projected to result in an estimated national increased energy use of 29,000,000 MMBtu which would also see increased energy costs for impacted buildings. Finally, attached is the AGA’s April 24th Press Release on the rule as well as comments filed on the rule in 2023.
Final Determination on Energy Efficiency Codes and Standards for New Construction Requirements for HUD and USDA Financed Housing.
Today, HUD and USDA issued a final determination that the 2021 IECC and ASHRAE 90.1– 2019 will not negatively affect the affordability and availability of housing covered by EISA and therefore will be requiring compliance with these standards in HUD and USDA housing financing covered by the Energy Independence and Security Act (EISA). As a reminder, in the June 16, 2023 Update on End Use Codes and Standards, we reported that in the May 18, 2023 Federal Register, HUD had issued a notice announcing a “preliminary determination of HUD and USDA Financed Housing , as required under section 481(d)(1) of the Energy Independence and Security Act of 2007 (EISA), that the 2021 IECC and ASHRAE 90.1–2019 will not negatively affect the affordability and availability of housing covered by EISA”. The Notice stated that “In making this preliminary determination, the first step to ultimately requiring compliance with these standards in HUD and USDA housing covered by EISA, this Notice relies on several studies that show that these codes are cost effective in that the incremental cost of the additional efficiency measures pays for themselves with energy cost savings on a life-cycle basis.” Of particular concern to the natural gas industry and other stakeholders was the statement: “Building Electrification. While the 2021 IECC did not include building electrification provisions in the final version of the code, provisions are available for adoption by states as amendments to the 2021 IECC: RE147–19, Electrification-Ready; RE126–19. Energy Efficient Water Heating, RE107–19, Eliminate Continuous Burning Pilot Light.” There were other provisions in the 2021 IECC and ASHRAE 90.1–2019 that were reviewed and identified as not adding to energy efficiency improvements or are not cost effective that we contended should be amended prior to HUD and USDA adopting the codes as a basis for funding by these federal agency programs. On August 7, 2023, AGA and the American Public Gas Association filed comments (attached) providing our opposition of including “electrification” and provisions that were not cost effective in the 2021 IECC and ASHRAE 90.1–2019 standard. We cited the June, 2021 Home Innovations Research Labs study for the National Association of Home Builders titled 2021 IECC Residential Cost Effectiveness Analysis that identified those specific provisions in the 2021 IECC. In this Final Determination, we are disappointed that although not required for compliance, the “Building Electrification” provisions were not deleted, and HUD did not agree with the lack of cost effectiveness of the 2021 IECC and ASHRAE 90.1– 2019 and therefore made no adjustments for compliance to those code requirements for HUD and USDA financed housing.
Reminder: The BECS Meeting Scheduled for May 8-9, 2024, at The Wigwam, Litchfield, AZ.
The next BECS Committee meeting will be held on May 8-9, 2024 at the Wigwam in Litchfield, AZ. (outside of Phoenix). Attached is the Notice of the Meeting that includes registration and hotel room reservation information. A tentative agenda for the meeting is attached and includes sessions on the varies model codes, indoor air quality, educational items, NGV issues, research items, etc. and presentations on federal legislative and regulatory items impacting the end use of natural gas, manufacturers presentations, etc. Note that there is no registration fee for attending meeting, but registration is required.
For meeting registration click here: BECS Committee Meeting.
The American Gas Association represents more than 200 local energy companies committed to the safe and reliable delivery of clean natural gas to more than 73 million customers throughout the nation.
2024 BECS Committee Meeting Schedule
May 8-9, 2024, Location Phoenix, AZ Hotel The Wigwam
To: The AGA Building Energy Codes and Standards (BECS) Committee:
You are invited to attend the upcoming Building Energy Codes and Standards Committee (BECS) Meeting on Wednesday and Thursday, May 8-9, 2024, at The Wigwam, in Litchfield Park, AZ.
There is no registration fee for this meeting, however registration is required. Additional, detailed information including the comprehensive agenda will be sent out as we approach the meeting dates. Note that the preliminary agenda (attached) may be modified based on recommendations by the BECS Executive Committee but the timeframe for the meeting will remain the same. We wanted to provide you with plenty of lead time to make your travel arrangements. Also, please provide us with your top 3 codes and standards issues that you want to be included during discussions at the meeting. We will make sure those items are included during the meeting. Additional Registration Guidelines and Special Discounts are also attached.
See attached meeting announcement letter to make hotel reservations.
For meeting registration click here: BECS Committee Meeting.
Best Regards,
Jim
Jim Ranfone | Managing Director, Codes and Standards
400 N. Capitol St., NW | Washington, DC | 20001
P: 202-824-7310 | [email protected]
The American Gas Association represents more than 200 local energy companies committed to the safe and reliable delivery of clean natural gas to more than 73 million customers throughout the nation.
Attachments: Preliminary Agenda, Registration Guidelines and Special Discounts
2024 BECS Committee Meeting Schedule
May 8-9, 2024, Litchfield Park, AZ
September 2024, TBD
For Immediate Release:
April 24, 2024
Expensive and Counterproductive: AGA Responds to DOE Federal Building Rule
WASHINGTON – The American Gas Association (AGA) today criticized the United States Department of Energy’s (DOE) Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings Rule as ineffective and fiscally irresponsible.
DOE’s rule eliminates natural gas heating, hot water and cooking systems from a broad range of new and modified federal buildings in 2030. According to DOE, the rule would increase overall energy consumption and likely greenhouse gas emissions. The federal building energy standards in this final rule are projected to result in an estimated national increased energy use of 29,000,000 MMBtu.
“Our natural gas utilities are committed to lowering emissions while delivering affordable and reliable energy to all of our customers, including the federal government in all 50 states. Unfortunately, this rule will raise costs on taxpayers to operate our federal government without any guarantee of real environmental gain,” said AGA President and CEO Karen Harbert. “According to DOE’s own data, natural gas is the most affordable way to heat buildings by a factor of three and also the most reliable during the most challenging times. That vital reliability is desperately needed to ensure operability in high-stakes moments, protect our national security, and serve important communities across our nation.”
DOE’s rulemaking comes one day after the adoption and release of two major reports by the National Petroleum Council which made clear that abundant, affordable and reliable natural gas will continue to play a crucial role in energy security and an important role in economic security beyond 2050 in all scenarios. AGA supports the goal of lower emissions and is investing every day to continue to decarbonize our systems. The decision to prioritize electrification over emissions reductions runs afoul of the government’s own investments in natural gas system decarbonization, including the announcement of 8 hydrogen hubs and a more than $7 billion investment in funding for clean hydrogen under the Inflation Reduction Act, and could foreclose or eliminate more cost-effective low and zero carbon energy options.
# # #
AGA Media Contact:
Emily Carlin
[email protected]
(202) 824-7278
Adam Kay
[email protected]
(202) 824-7263
About the American Gas Association
The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 77 million residential, commercial and industrial natural gas customers in the U.S., of which 96 percent — more than 74 million customers — receive their gas from AGA members. Today, natural gas meets nearly one-third of the United States’ energy needs.