This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

19595 

Vol. 87, No. 65 

Tuesday, April 5, 2022 

DEPARTMENT OF ENERGY 

10 CFR Part 435 

[EERE–2022–BT–STD–0013] 

RIN 1904–AD56 

Energy Efficiency Standards for the 

Design and Construction of New 

Federal Low-Rise Residential 

Buildings Baseline Standards Update 

AGENCY: Office of Energy Efficiency and 

Renewable Energy, Department of 

Energy. 

ACTION: Final rule. 

SUMMARY: The U.S. Department of 

Energy (DOE) is publishing this final 

rule to implement provisions in the 

Energy Conservation and Production 

Act (ECPA) that require DOE to update 

the baseline Federal energy efficiency 

performance standards for the 

construction of new Federal low-rise 

residential buildings. This final rule 

updates the baseline Federal residential 

standard to the International Code 

Council (ICC) 2021 International Energy 

Conservation Code (IECC). 

DATES: This rule is effective June 6, 

2022. The incorporation by reference of 

certain material listed in this rule was 

approved by the Director of the Federal 

Register as of June 6, 2022. The 

incorporation by reference of other 

material listed in this rule was approved 

by the Director of the Federal Register 

as of March 13, 2017. 

All Federal agencies shall design new 

Federal buildings that are low-rise 

residential buildings, for which design 

for construction began on or after April 

5, 2023, using the 2021 IECC as the 

baseline standard for 10 CFR part 435. 

ADDRESSES: The docket, which includes 

this Federal Register notice and other 

supporting documents and materials, is 

available for review at 

www.regulations.gov. All documents in 

the docket are listed in the 

www.regulations.gov index. However, 

some documents listed in the index, 

such as those containing information 

that is exempt from public disclosure, 

may not be publicly available. The 

www.regulations.gov site contains 

simple instructions on how to access all 

documents, including public comments, 

in the docket. 

A link to the docket web page can be 

found at www.energy.gov/eere/femp/ 

notices-and-rules-related-federalenergy-management. This web page will 

contain a link to the docket for this 

notice on the www.regulations.gov site. 

The www.regulations.gov web page will 

contain simple instructions on how to 

access all documents, including public 

comments, in the docket. 

For further information on how to 

review the docket, contact Mr. Nicolas 

Baker at (202) 586–8215 or by email: 

nicolas.baker@ee.doe.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Nicolas Baker, U.S. Department of 

Energy, Office of Energy Efficiency and 

Renewable Energy, Federal Energy 

Management Program, Mailstop EE–5F, 

1000 Independence Avenue SW, 

Washington, DC 20585, (202) 586–8215, 

email: nicolas.baker@ee.doe.gov. 

Mr. Matthew Ring, U.S. Department of 

Energy, Office of the General Counsel, 

Forrestal Building, GC–33, 1000 

Independence Avenue SW, Washington, 

DC 20585, (202) 586–2555, Email: 

matthew.ring@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: DOE 

maintains previously-approved versions 

and incorporates by reference the 

following standard into 10 CFR part 

435: 

ICC International Energy Conservation 

Code (IECC), Redline Version, copyright 

2021. (IECC 2021). 

Copies of this standard is available 

from the International Code Council, 

4051 West Flossmoor Road, Country 

Club Hills, IL 60478, 1–800–422–7233, 

www.iccsafe.org/. 

For a further discussion of this 

standard see section VII.N of this 

document. 

Table of Contents 

I. Summary 

II. Introduction 

III. Synopsis of the Final Rule 

A. Synopsis of Changes to the IECC 

Between the 2015 and 2021 IECC 

1. Description of Changes From 2015 IECC 

to 2018 IECC 

2. Description of Changes From 2018 IECC 

to 2021 IECC 

IV. Methodology, Analytical Results, and 

Conclusion 

A. Cost-Effectiveness Analysis 

B. Monetization of Emissions Reduction 

Benefits 

1. Monetization of Greenhouse Gas 

Emissions 

2. Monetization of Other Air Pollutants 

C. Conclusion 

V. Compliance Date 

VI. Reference Resources 

VII. Regulatory Analysis 

A. Review Under Executive Order 12866, 

‘‘Regulatory Planning and Review’’ 

B. Review Under the Administrative 

Procedure Act 

C. Review Under the Regulatory Flexibility 

Act 

D. Review Under the Paperwork Reduction 

Act of 1995 

E. Review Under the National 

Environmental Policy Act of 1969 

F. Review Under Executive Order 13132, 

‘‘Federalism’’ 

G. Review Under Executive Order 12988, 

‘‘Civil Justice Reform’’ 

H. Review Under the Unfunded Mandates 

Reform Act of 1995 

I. Review Under the Treasury and General 

Government Appropriations Act of 1999 

J. Review Under Executive Order 12630, 

‘‘Governmental Actions and Interference 

With Constitutionally Protected Property 

Rights’’ 

K. Review Under the Treasury and General 

Government Appropriations Act, 2001 

L. Review Under Executive Order 13211, 

‘‘Actions Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use’’ 

M. Review Under Section 32 of the Federal 

Energy Administration Act of 1974 

N. Description of Materials Incorporated by 

Reference 

VIII. Congressional Notification 

IX. Approval of the Office of the Secretary 

I. Summary 

Section 305 of the Energy 

Conservation and Production Act 

(ECPA), as amended, requires DOE to 

determine whether the energy efficiency 

standards for new Federal buildings 

should be updated to reflect revisions to 

the IECC based on the cost-effectiveness 

of the revisions. (42 U.S.C. 

6834(a)(3)(B)) In this rulemaking, DOE 

is updating the energy efficiency 

standards for new Federal low-rise 

residential buildings to IECC 2021 from 

IECC 2015. Accordingly, DOE 

conducted a cost-effectiveness analysis 

and determined that the 2021 IECC 

would be cost-effective if applied to 

new Federal low-rise residential 

buildings. DOE’s assumptions and 

methodology for the cost-effectiveness 

of this rule are based on the costeffectiveness analysis of the 2021 IECC 


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19596 Federal Register / Vol. 87, No. 65 / Tuesday, April 5, 2022 / Rules and Regulations 

1National Cost-Effectiveness of the Residential 

Provisions of the 2018 IECC, Taylor, ZT. PNNL– 

28515, Pacific Northwest National Laboratory, April 

2021. www.energycodes.gov/sites/default/files/ 

2021–07/2018IECC_CE_Residential.pdf. 

National Cost-Effectiveness of the Residential 

Provisions of the 2021 IECC, Salcido, VR, Y Chen, 

Y Xie, and ZT Taylor. PNNL–31019, Pacific 

Northwest National Laboratory, June 2021. 

www.energycodes.gov/sites/default/files/2021–07/ 

2021IECC_CostEffectiveness_Final_Residential.pdf. 

Environmental Assessment for Final Rule, 10 CFR 

part 435, ‘Energy Efficiency Standards for the 

Design and Construction of New Federal Low-Rise 

Residential Buildings,’ Baseline Standards Update. 

The EA may be found in the docket for this 

rulemaking and at www.energy.gov/nepa/doeea2166-energy-efficiency-standards-new-federal-lowrise-residential-buildings-baseline. 

2 Final Determination Regarding Energy 

Efficiency Improvements in the 2021 International 

Energy Conservation Code (IECC); Notice of 

determination, 86 FR 40529 (July 28, 2021). 

www.regulations.gov/docket/EERE–2021–BT–DET– 

0010/document. 

3 Final Determination Regarding Energy 

Efficiency Improvements in the 2018 International 

Energy Conservation Code (IECC); Notice of 

determination, 84 FR 67435 (December 10, 2019). 

www.federalregister.gov/documents/2019/12/10/ 

2019–26550/final-determination-regarding-energyefficiency-improvements-in-the-2018-internationalenergy. 

performed by DOE’s state building 

codes program, as well as DOE’s 

environmental assessment (EA) for this 

rulemaking.1 Therefore, in this final 

rule, DOE updates the energy efficiency 

standards for new Federal buildings to 

the 2021 IECC for buildings for which 

design for construction begins on or 

after one year following publication of 

this final rule in the Federal Register. 

(42 U.S.C. 6834 (a)(3)(A)) 

II. Introduction 

ECPA, as amended, requires DOE to 

establish building energy efficiency 

standards for all new Federal buildings. 

(42 U.S.C. 6834(a)(1)) The standards 

established under section 305(a)(1) of 

ECPA must contain energy efficiency 

measures that are technologically 

feasible, economically justified, and 

meet the energy efficiency levels in the 

applicable voluntary consensus energy 

codes specified in section 305. (42 

U.S.C. 6834(a)(1)–(3)) 

Under section 305 of ECPA, the 

referenced voluntary consensus code for 

low-rise residential buildings is the 

International Code Council (ICC) 

International Energy Conservation Code 

(IECC). (42 U.S.C. 6834(a)(2)(A)) DOE 

codified this referenced code as the 

baseline Federal building standard in its 

existing energy efficiency standards 

found in 10 CFR part 435. Also pursuant 

to section 305 of ECPA, DOE must 

establish, by rule, revised Federal 

building energy efficiency performance 

standards for new Federal buildings that 

require such buildings to be designed to 

achieve energy consumption levels that 

are at least 30 percent below the levels 

established in the referenced code 

(baseline Federal building standard), if 

life-cycle cost (LCC) effective. (42 U.S.C. 

6834(a)(3)(A)(i)(I)) 

Under section 305 of ECPA, not later 

than one year after the date of approval 

of each subsequent revision of the 

ASHRAE Standard or the IECC, DOE 

must determine whether to amend the 

baseline Federal building standards 

with the revised voluntary standard 

based on the cost-effectiveness of the 

revised voluntary standard. (42 U.S.C. 

6834(a)(3)(B)) It is this requirement that 

this rulemaking addresses. ICC has 

updated the IECC from the version 

currently referenced in DOE’s 

regulations at 10 CFR part 435. In this 

final rule, DOE revises the latest 

baseline Federal building standard for 

10 CFR part 435 from the 2015 IECC to 

the 2021 IECC. DOE notes that although 

ICC published an update to the IECC in 

2018, this rule updates 10 CFR part 435 

to the 2021 IECC directly, without 

requiring agencies to comply with the 

2018 IECC. DOE notes, however, that 

because development of the IECC is 

incremental from version to version, the 

2021 IECC does include all content in 

the 2018 IECC that was not specifically 

removed or modified during the 

development of the 2021 IECC. 

Section 306(a) of ECPA provides that 

each Federal agency and the Architect 

of the Capitol must adopt procedures to 

ensure that new Federal buildings will 

meet or exceed the Federal building 

energy efficiency standards established 

under section 305. (42 U.S.C. 6835(a)) 

Section 306(b) of ECPA bars the head of 

a Federal agency from expending 

Federal funds for the construction of a 

new Federal building unless the 

building meets or exceeds the 

applicable baseline Federal building 

energy standards established under 

section 305. (42 U.S.C. 6835(b)) 

Specifically, all new Federal buildings 

must be designed to achieve the 

baseline standards in the IECC for lowrise residential buildings (and ASHRAE 

Standard 90.1 for commercial and 

multi-family high-rise residential 

buildings) and achieve energy 

consumption levels at least 30 percent 

below these minimum baseline 

standards, where LCC effective. (42 

U.S.C. 6834 (a)(3)(A)) When it is not 

LCC effective to design new Federal 

low-rise residential buildings to exceed 

IECC performance levels by 30 percent, 

new Federal buildings must be designed 

to exceed the IECC performance levels 

up to the percentage that is LCC 

effective, but at minimum meets the 

performance levels of the IECC. (10 CFR 

435.4(c)). These requirements do not 

extend to renovations or modifications 

to existing buildings. 

III. Synopsis of the Final Rule 

DOE is issuing this action as a final 

rule. As indicated in this preamble, DOE 

must determine whether the energy 

efficiency standards for new Federal 

buildings should be updated to reflect 

revisions included in the 2021 IECC 

based on the cost-effectiveness of the 

revisions. (42 U.S.C. 6834(a)(3)(B)) In 

this final rule, DOE determines that the 

energy efficiency standards for new 

Federal buildings should be updated to 

reflect the 2021 revisions to the IECC 

based on the cost-effectiveness of the 

revisions. 

DOE reviewed the IECC for DOE’s 

state building codes program and 

determined that the 2021 version of the 

IECC would achieve greater energy 

efficiency than the prior version (the 

2018 version). (See 86 FR 40529 (July 

28, 2021)) DOE also reviewed the 2018 

version of the IECC and determined that 

the 2018 version would achieve greater 

energy efficiency than the prior version 

(the 2015 version currently referenced 

in 10 CFR part 435). (See 82 FR 2867 

(January 10, 2017)) Both these 

determinations were subject to notice 

and comment. See 86 FR 26710 (May 

17, 2021) and 84 FR 18833 (May 2, 

2019), respectively, for the 2021 IECC 

and 2018 preliminary determinations. 

DOE found that the 2021 version of the 

IECC would save 8.79 percent more 

source energy than the 2018 version of 

the IECC2 and that the 2018 version of 

the IECC would save 1.91 percent more 

source energy than the 2015 version of 

the IECC.3

In DOE’s determinations for the State 

building codes program, and again in 

this rule, DOE states that the costeffectiveness of revisions to the 

voluntary codes is considered through 

DOE’s statutorily directed involvement 

in the codes process. See 86 FR 40529 

(July 28, 2021). Section 307 of ECPA 

requires DOE to participate in the ICC 

code development process and to assist 

in determining the cost-effectiveness of 

the voluntary standards. (42 U.S.C. 

6836) DOE is required to periodically 

review the economic basis of the 

voluntary building energy codes and 

participate in the industry process for 

review and modification, including 

seeking adoption of all technologically 

feasible and economically justified 

energy efficiency measures. (42 U.S.C. 

6836(b)) 

In addition to DOE’s consideration of 

the cost-effectiveness of the 2021 IECC 

through its participation in the code 


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Federal Register / Vol. 87, No. 65 / Tuesday, April 5, 2022 / Rules and Regulations 19597 

4National Cost-Effectiveness of the Residential 

Provisions of the 2018 IECC, Taylor, ZT PNNL– 

28515, Pacific Northwest National Laboratory, April 

2021. www.energycodes.gov/sites/default/files/ 

2021–07/2018IECC_CE_Residential.pdf. 

National Cost-Effectiveness of the Residential 

Provisions of the 2021 IECC, Salcido, VR, Y Chen, 

Y Xie, and ZT Taylor. PNNL–31019, Pacific 

Northwest National Laboratory, June 2021. 

www.energycodes.gov/sites/default/files/2021–07/ 

2021IECC_CostEffectiveness_Final_Residential.pdf. 

5Environmental Assessment for Final Rule, 10 

CFR part 435, ‘Energy Efficiency Standards for New 

Federal Low-Rise Residential Buildings,’ Baseline 

Standards Update. The EA may be found in the 

docket for this rulemaking and at www.energy.gov/ 

nepa/doeea-2166-energy-efficiency-standards-newfederal-low-rise-residential-buildings-baseline. 

6 Final Determination Regarding Energy 

Efficiency Improvements in the 2018 International 

Energy Conservation Code (IECC); Notice of 

determination, 84 FR 67435 (December 10, 2019). 

www.federalregister.gov/documents/2019/12/10/ 

2019–26550/final-determination-regarding-energyefficiency-improvements-in-the-2018-internationalenergy. 

7 Final Determination Regarding Energy 

Efficiency Improvements in the 2021 International 

Energy Conservation Code (IECC); Notice of 

determination, 86 FR 40529 (July 28, 2021). 

www.regulations.gov/docket/EERE–2021–BT–DET– 

0010/document. 

8 Final Determination Regarding Energy 

Efficiency Improvements in the 2018 International 

Energy Conservation Code (IECC); Notice of 

determination, 84 FR 67435 (December 10, 2019). 

www.federalregister.gov/documents/2019/12/10/ 

2019-26550/final-determination-regarding-energyefficiency-improvements-in-the-2018-internationalenergy. 

National Cost-Effectiveness of the Residential 

Provisions of the 2018 IECC, Taylor, ZT. PNNL– 

28515, Pacific Northwest National Laboratory, April 

2021. www.energycodes.gov/sites/default/files/ 

2021-07/2018IECC_CE_Residential.pdf. 

9 Final Determination Regarding Energy 

Efficiency Improvements in the 2021 International 

Energy Conservation Code (IECC); Notice of 

determination, 86 FR 40529 (July 28, 2021) 

www.regulations.gov/docket/EERE–2021–BT–DET– 

0010/document. 

National Cost-Effectiveness of the Residential 

Provisions of the 2021 IECC, Salcido VR, Y Chen, 

Y Xie, and ZT Taylor, PNNL–31019, Pacific 

Northwest National Laboratory, June 2021. 

www.energycodes.gov/sites/default/files/2021–07/ 

2021IECC_CostEffectiveness_Final_Residential.pdf. 

development process, DOE conducted 

an independent analysis of the costeffectiveness of the 2021 IECC compared 

to the 2018 IECC and 2015 IECC.4 The 

results of the analysis are discussed in 

section VII.A of this document. DOE’s 

assumptions and methodology for the 

cost-effectiveness of this rule are based 

on DOE’s cost-effectiveness analysis of 

the 2018 and 2021 IECC, as well as 

DOE’s EA for this rulemaking.5

In this rule, DOE updates the energy 

efficiency standards applicable to new 

Federal buildings based on the 

determinations made by DOE as to the 

energy efficiency improvements of the 

2018 IECC6 and 2021 IECC,7 as 

compared to the predecessor version 

(the 2015 IECC), and based on the 

considerations of cost-effectiveness 

incorporated into the codes processes, 

DOE’s involvement in those processes, 

and DOE’s own cost-effectiveness 

analysis. This final rule amends 10 CFR 

part 435 to update the referenced 

baseline Federal energy efficiency 

performance standards. This final rule 

does not make any changes to the 

overall requirement that agencies must 

design buildings to meet the baseline 

standard and, if LCC effective, achieve 

savings of at least 30 percent below the 

baseline standard. 

A. Synopsis of Changes to the IECC

Between the 2015 and 2021 IECC

The IECC is updated every three years 

by the International Code Council (ICC). 

DOE, as part of its determination 

process, evaluates each new version of 

the IECC for low-rise residential 

buildings. The summaries in the 

following sections are taken directly 

from DOE’s determinations and 

supporting analyses for the 2018 IECC8

and 2021 IECC.9 Section III.A.1 of this 

document describes the changes 

between the 2015 IECC and the 2018 

IECC and section III.A.2 of this 

document describes the changes 

between the 2018 IECC and the 2021 

IECC. 

1. Description of Changes From 2015

IECC to 2018 IECC

In creating the 2018 IECC, ICC 

processed 47 approved code change 

proposals to the 2015 IECC. A total of 

14 of these changes were found to have 

a direct impact on energy use and the 

other 33 changes were administrative or 

had an impact on non-energy portions 

of the code. DOE found that changes 

resulting in decreased energy use 

outweigh any changes expected to result 

in increased energy use in residential 

buildings. Of the 47 total changes, 11 

were expected to decrease energy use, 3 

were expected to increase energy use, 30 

were administrative, and 3 were 

considered not energy related. 

The 11 changes considered that are 

expected to decrease energy use are the 

following: 

(1) Requires R–5 insulation under the

entire slab when the slab is heated. This 

change will result in reduced heat loss 

in buildings with heated slabs, thereby 

reducing energy use. 

(2) Lowers fenestration U-factors in

climate zones 3–8. This change reduces 

heat loss and gain through doors and 

windows in six of the eight IECC 

climate zones. 

(3) Corrects an inconsistency in the

steel framing R-value equivalency table. 

This change effectively requires an 

additional R–1 continuous insulation if 

R–19 cavity insulation is used, resulting 

in decreased energy use. 

(4) Adds provisions for ducts buried

in attic insulation. The provisions 

added address buried ducts as an 

optional feature. 

(5) Adds heat recovery ventilation

(HRV)/energy recovery ventilation 

(ERV)-specific fan-efficacy 

requirements. This change replaces 

prior efficacy values for generic in-line 

fans that were considered inappropriate 

when HRV/ERV systems are installed. 

(6) Increases high-efficacy lighting

requirements from 75 percent to 90 

percent of permanently installed 

lighting fixtures and eliminates the 

option of calculating percentages based 

on lamp counts instead of fixture 

counts. This change results in reduced 

energy use in lighting and applies to all 

homes complying with the IECC. 

(7) Updates equation for ventilation

fan energy in the Standard Reference 

Design of the simulated performance 

alternative compliance path to reference 

prescriptive fan-efficacy requirements. 

The equation in the prior code version 

used a term based on outdated fan 

efficacies. This change reduces energy 

when compliance is demonstrated using 

the performance path. 

(8) Replaces definition of Energy

Rating Index (ERI) with a reference to 

ANSI/RESNET/ICC 301, except for 

Reference Home ventilation rates, which 

are modified to be consistent with 

International Residential Code (IRC) 

requirements. This change bases the ERI 

target on the IRC’s ventilation rates, 

which are lower than those in American 

National Standards Institute (ANSI)/ 

Residential Energy Services Network 

(RESNET)/ICC 301. This reduces 

ventilation energy in homes meeting the 

target in the ERI path. 

(9) Improves mandatory envelope

requirements in the ERI compliance 

path for homes with onsite generation. 

This change strengthens mandatory 

envelope efficiency requirements and 

prevents degrading envelope efficiency 

in trade for onsite generation. 

(10) Requires new heating,

ventilating, and air-conditioning 

(HVAC) systems in additions and 

alterations to comply with the same 

requirements as systems in new homes. 

This change will improve efficiency in 

some additions and alterations. 

(11) Modifies and clarifies an

exception to the pool cover 

requirements. This change makes a 

modest increase to the level of siterecovered energy required to qualify for 

the exception. 

The three changes that are expected to 

increase energy use are as follows: 

(1) Exempts log homes designed in

accordance with ICC–400 from the 

thermal envelope requirements of the 


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10www.energycodes.gov/sites/default/files/2021– 

07/EERE–2018–BT–DET–0014–0008.pdf. 

11 DOE’s cost-effectiveness report on the 2018 

IECC is ‘‘National Cost-Effectiveness of the 

Residential Provisions of the 2018 IECC’’, PNNL– 

28515, Taylor, ZT, April 2021. Available at 

www.energycodes.gov/sites/default/files/2021–07/ 

2018IECC_CE_Residential.pdf. 

12 DOE’s cost-effectiveness report on the 2021 

IECC is ‘‘National Cost-Effectiveness of the 

Residential Provisions of the 2021 IECC’’, PNNL– 

31019, Salcido et al, June 2021. Available at 

www.energycodes.gov/sites/default/files/2021-07/ 

2021IECC_CostEffectiveness_Final_Residential.pdf. 

13The EA (DOE/EA–2166) is entitled, 

‘‘Environmental Assessment for Final Rule, 10 CFR 

part 435, ‘Energy Efficiency Standards for New 

Federal Low-Rise Residential Buildings,’ Baseline 

Standards Update.’’ The EA may be found in the 

docket for this rulemaking and at www.energy.gov/ 

nepa/doeea-2166-energy-efficiency-standards-newfederal-low-rise-residential-buildings-baseline. 

14A discussion of the DOE residential prototypes 

is found in DOE’s cost-effectiveness report, 

available at www.energycodes.gov/sites/default/ 

files/2021-07/2021IECC_CostEffectiveness_Final_

Residential.pdf. 

15Note that the values in Table VI.1 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for IECC 

2018, 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. 

16 DOE’s main source of Federal construction 

information, the Federal Real Property Profile 

Management System (FRPP MS), lists Family 

Housing and Barracks/Dormitories as separate 

categories. DOE utilized the Federal Agency 

information in the FRPP MS to disaggregate Federal 

Dormitories and Barracks to estimate new 

construction of dormitories, which are 

predominantly residential in nature, and training 

barracks, which include non-residential spaces. 

Department of Defense agencies were assumed to 

construct training barracks, while non-DoD agencies 

were assumed to construct dormitories. DOE 

utilized Asset Height Range information in the 

FRPP MS to distinguish between low-rise 

residential construction and multi-family high-rise 

construction by including only buildings estimated 

to be less than 30 feet in height. Once buildings to 

be included had been identified, the FRPP MS data 

was then used to estimate the square footage of 

buildings in the Federal Dormitories and Barracks 

and Family Housing categories that are assumed to 

be built under 10 CFR part 435 (the subject of this 

rulemaking) versus those more likely to be built 

under 10 CFR part 433 (New Federal Commercial 

and Multi-Family High-rise Residential). For Family 

Housing, DOE also utilized the square foot 

information in the FRPP MS to develop percentage 

weights for the Single-Family prototype (less than 

6,000 square feet) and Low-rise Multi-family 

Residential (6,000 square feet and greater). The 

square foot demarcation was determined using the 

BECP assumption of approximately 1,200 square 

feet per multi-family housing unit, and an 

assumption that 5 or more housing units would 

define a multi-family building. While Barracks may 

be envisioned as long low buildings containing 

rows of cots, this vision is driven primarily by oldstyle barracks from the past. DOD’s new training 

barracks tend to combine sleeping accommodations, 

classrooms, and physical training facilities and are 

therefore designed by DOD using the Federal 

commercial and high-rise multi-family 

requirements. 

IECC. This change results in an 

expected increase in energy use in log 

homes since ICC–400 allows less 

efficient walls than the IECC. 

(2) Allows buried ducts meeting 

specified insulation and air-sealing 

criteria to be considered equivalent to 

ducts located entirely within 

conditioned space in the simulated 

performance alternative compliance 

path. This change increases heat gain/ 

loss into attics compared to ducts 

entirely within conditioned space. 

(3) Raises (relaxes) ERI thresholds. 

This change allows higher energy use in 

residences under the ERI compliance 

path. 

The remaining 33 changes were 

considered administrative in nature or 

were determined to not be energy 

related. These changes are discussed in 

more detail in Table A.2 of Energy 

Savings Analysis: 2018 IECC for 

Residential Buildings.10

2. Description of Changes From 2018 

IECC to 2021 IECC 

In creating the 2021 IECC, ICC 

processed 119 approved code change 

proposals to the 2018 IECC. A total of 

35 of these changes were found to have 

a direct impact on energy use and the 

other 79 changes were administrative or 

had an impact on non-energy portions 

of the code. DOE found that changes 

resulting in decreased energy use 

outweigh any changes expected to result 

in increased energy use in residential 

buildings. Of the 35 changes that were 

determined to directly impact energy 

use, 29 were expected to decrease 

energy use and 6 were expected to 

increase energy use. 

The following 11 changes were 

determined to result in the bulk of the 

energy savings associated with the 2021 

IECC over the 2018 IECC: 

(1) Increases lamp efficacy to 65 

lumens per watt and luminaires efficacy 

to 45 lumens per watt. 

(2) Increases efficacy in the definition 

of high-efficacy lamps to 70 lumens per 

watt. 

(3) Increases stringency of wood frame 

wall R-value requirements in climate 

zones 4 and 5. 

(4) Increases slab insulation R-value 

requirements and depth in climate 

zones 3–5. 

(5) Increases stringency for ceiling 

insulation in climate zones 2 and 3. 

(6) Increases stringency for ceiling 

insulation in climate zones 4–8 and 

adds exception for when there is not 

space for R–60 in the ceiling. 

(7) Increases stringency of fenestration 

U-factors in climate zones 3–4. 

(8) Increases whole-house mechanical 

ventilation system fan efficacy 

requirements for inline fans and 

bathroom/utility fans. 

(9) Requires ventilation systems to 

include heat or energy recovery in 

climate zones 7 and 8. 

(10) Requires exterior lighting in R–2, 

R–3, and R–4 buildings to meet Section 

C405.4 of IECC. 

(11) Adds new section R408, 

‘‘Additional Efficiency Package 

Options’’ to reduce energy use by 5 

percent regardless of the compliance 

path chosen. 

IV. Methodology, Analytical Results, 

and Conclusion 

A. Cost-Effectiveness Analysis 

DOE’s assumptions and methodology 

for the cost-effectiveness of this rule are 

based on the cost-effectiveness analysis 

of the 2018 IECC11 and 2021 IECC 

performed by DOE’s state building 

codes program,12 as well as DOE’s EA 

for this rulemaking.13 The EA identified 

a rate of new Federal residential 

construction of approximately 9.78 

million square feet per year. This 

equates to approximately 3,824 new 

single-family units (9.60 million square 

feet) and 153 new low-rise multi-family 

residential units (0.19 million square 

feet) assumed each year. As described in 

the EA, this estimate is derived from 

consideration of data from the Federal 

Real Property Profile Management 

System (FRPP MS) extraction and 

Department of Defense estimates of 

privatized housing. DOE’s costeffectiveness analysis of the 2018 IECC 

provides tables for the first cost 

increase, the energy savings, and the 

LCCs associated with the 2018 IECC 

versus the 2015 IECC by climate zone. 

DOE’s cost-effectiveness report does not 

provide national average values but 

does provide sufficient weighting data 

so that these national averages can be 

calculated. The weighting data provided 

in the cost-effectiveness report is used 

to generate the rows labeled ‘‘National 

Average’’ in Table IV.1 through Table 

IV.9 in this preamble. 

Table IV.1 lists the increased first 

costs associated with the 2018 IECC for 

a standard 2,376 square feet prototypical 

home and a standard 1,200 square feet 

prototypical apartment/condo 

building.14 15 Based on historical data as 

described in the EA, DOE estimates that 

the majority of Federal low-rise 

residential construction will be singlefamily homes built by the Department of 

Defense (or their privatization 

contractors), along with some singlefamily homes and Federal low-rise 

multi-family buildings built by other 

agencies,16 so the results of DOE’s first 

cost analysis are shown in full. The 


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2018 IECC does increase the first cost of 

construction of new homes and 

apartments/condos compared to the 

2015 IECC in all climate zones in the 

United States. 

TABLE IV.1—TOTAL INCREMENTAL CONSTRUCTION FIRST COST FOR 2018 IECC COMPARED TO THE 2015 IECC 

[2020$] 

Climate zone 

2,376 ft2 house 1,200 ft2 apartment/condo 

Slab, unheated 

basement, or 

crawlspace 

Heated 

basement 

Slab, unheated 

basement, or 

crawlspace 

Heated 

basement 

1 ............................................................................................................... $0 $0 $0 $0 

2 ............................................................................................................... 0 0 0 0 

3 ............................................................................................................... 72 108 56 74 

4 ............................................................................................................... 72 108 56 74 

5 ............................................................................................................... 48 72 37 49 

6 ............................................................................................................... 48 72 37 49 

7 ............................................................................................................... 48 72 37 49 

8 ............................................................................................................... 48 72 37 49 

National Average ..................................................................................... 49 74 38 50 

Table IV.2 lists the increased first 

costs associated with the 2021 IECC for 

a standard 2,376 square feet prototypical 

home and a standard 1,200 square feet 

prototypical apartment/condo building. 

The 2021 IECC increases the first cost of 

construction of new homes and 

apartments/condos compared to the 

2018 IECC in all climate zones in the 

United States. 

TABLE IV.2—TOTAL INCREMENTAL CONSTRUCTION FIRST COST * FOR 2021 IECC COMPARED TO THE 2018 IECC 

[2020$] 

Climate zone 2,376 ft2

house 

1,200 ft2

apartment/condo 

1 ............................................................................................................................................... $936 $933 

2 ............................................................................................................................................... 1,530 1,146 

3 ............................................................................................................................................... 1,859 1,192 

4 ............................................................................................................................................... 3,687 1,533 

5 ............................................................................................................................................... 3,569 1,487 

6 ............................................................................................................................................... 1,477 1,102 

7 ............................................................................................................................................... 2,980 2,603 

8 ............................................................................................................................................... 2,982 2,603 

National Average ..................................................................................................................... 2,372 1,316 

* The 2021 Cost Effectiveness report provides total incremental construction cost increase with no distinction made between the foundation 

type. In this particular transition from IECC 2018 to IECC 2021, the cost increase is primarily due to additional insulation requirements, window 

improvements, efficiency option packages, and heat recovery ventilation (only for climate zones 7 and 8). 

Table IV.3 combines the incremental 

first costs associated with the 2018 and 

2021 versions of the IECC. In addition 

to adjusting for inflation (as was done 

for the values in Table IV.1), the 2018 

IECC analysis was adjusted to use the 

same underlying economic assumptions 

as the 2021 IECC, including fuel prices, 

fuel price escalations, labor and material 

costs, and sales tax rates. 

TABLE IV.3—TOTAL INCREMENTAL CONSTRUCTION FIRST COST FOR 2021 IECC COMPARED TO THE 2015 IECC 

[2020$] 

Climate zone 2,376 ft2

house 

1,200 ft2

apartment/condo 

1 ............................................................................................................................................... $936 $933 

2 ............................................................................................................................................... 1,536 1,146 

3 ............................................................................................................................................... 1,938 1,217 

4 ............................................................................................................................................... 3,265 1,386 

5 ............................................................................................................................................... 3,624 1,503 

6 ............................................................................................................................................... 1,531 1,118 

7 ............................................................................................................................................... 3,035 2,620 

8 ............................................................................................................................................... 3,037 2,620 

National Average ..................................................................................................................... 2,336 1,294 


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17See www.census.gov/construction/nrs/ 

historical_data/index.html, Median and Average 

Sale Price of Houses Sold. 18RS Means. 2020. RS Means Building 

Construction Cost Data, 89th Ed. Construction 

Publishers & Consultants. Norwell, MA. 

19Note that the values in Table VI.4 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for IECC 

2018, 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. 

The United States Census Bureau 

tracks information on new home sales in 

the United States. Based on available 

data, the median price of a non-Federal 

single-family home in the United States 

in 2020 was $336,990.17 The national 

average incremental cost increase of 

$2,336 represents approximately 0.7 

percent of the median cost of a new 

home. An estimated construction cost of 

$217 per square foot for new Federal 

dormitories and barracks was obtained 

from RS Means (2020).18 This would 

equate to approximately $260,400 per 

multi-family unit. The national average 

incremental cost increase of $1,294 

represents approximately 0.5 percent of 

the approximate cost per multi-family 

unit. Any increase in first cost would be 

accompanied by a reduction in energy 

costs and an increase in LCC net 

savings. 

The estimated first year energy cost 

savings associated with the 2018 IECC is 

shown in Table IV.4 and the estimated 

first year energy cost savings associated 

with the 2021 IECC is show in Table 

IV.5.19 These tables are based on a 

combination of single-family homes and 

apartments/condos as described in 

DOE’s cost-effectiveness reports. While 

the weighting of homes and apartments/ 

condos may not be identical in the 

private and Federal sectors, the trends 

are similar for both single-family homes 

and apartments/condos. Both the 2018 

IECC and 2021 IECC save a moderate 

amount of energy costs over the 2015 

IECC in all climate zones in the United 

States. 

TABLE IV.4—AVERAGE FIRST YEAR ENERGY COST SAVINGS FOR THE 2018 IECC COMPARED TO THE 2015 IECC 

[2020$] 

Climate zone 

Average annual 

energy cost savings 

(2020$/dwelling-unit-yr) 

1 ................................................................................................................................................................................. $15 

2 ................................................................................................................................................................................. 15 

3 ................................................................................................................................................................................. 25 

4 ................................................................................................................................................................................. 29 

5 ................................................................................................................................................................................. 28 

6 ................................................................................................................................................................................. 30 

7 ................................................................................................................................................................................. 36 

8 ................................................................................................................................................................................. 48 

National Average ....................................................................................................................................................... 25 

TABLE IV.5—AVERAGE FIRST YEAR ENERGY COST SAVINGS FOR THE 2021 IECC COMPARED TO THE 2018 IECC 

[2020$] 

Climate zone 

Average annual 

energy cost savings 

(2020$/dwelling-unit-yr) 

1 ................................................................................................................................................................................. $200 

2 ................................................................................................................................................................................. 192 

3 ................................................................................................................................................................................. 200 

4 ................................................................................................................................................................................. 205 

5 ................................................................................................................................................................................. 173 

6 ................................................................................................................................................................................. 123 

7 ................................................................................................................................................................................. 306 

8 ................................................................................................................................................................................. 411 

National Average ....................................................................................................................................................... 191 

Table IV.6 combines the average first 

year energy cost savings associated with 

the 2018 and 2021 versions of the IECC. 

In addition to adjusting for inflation (as 

was done for the values in Table IV.4), 

the 2018 IECC analysis was adjusted to 

use the same underlying economic 

assumptions as the 2021 IECC, 

including fuel prices, fuel price 

escalations, labor and material costs, 

and sales tax rates. 

TABLE IV.6—AVERAGE FIRST YEAR ENERGY COST SAVINGS FOR THE 2015 IECC COMPARED TO THE 2021 IECC 

[2020$] 

Climate zone 

Average annual 

energy cost savings 

(2020$/dwelling-unit-yr) 

1 ................................................................................................................................................................................. $208 

2 ................................................................................................................................................................................. 199 

3 ................................................................................................................................................................................. 214 


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20Note that the values in Table VI.7 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for IECC 

2018, 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. 

TABLE IV.6—AVERAGE FIRST YEAR ENERGY COST SAVINGS FOR THE 2015 IECC COMPARED TO THE 2021 IECC— 

Continued 

[2020$] 

Climate zone 

Average annual 

energy cost savings 

(2020$/dwelling-unit-yr) 

4 ................................................................................................................................................................................. 223 

5 ................................................................................................................................................................................. 189 

6 ................................................................................................................................................................................. 146 

7 ................................................................................................................................................................................. 328 

8 ................................................................................................................................................................................. 439 

National Average ....................................................................................................................................................... 205 

The LCC impact of the 2018 IECC is 

shown in Table IV.7 and the LCC impact 

of the 2021 IECC is shown in Table 

IV.8.20 Again, these values represent the 

combination of single-family homes and 

apartments/condos, but the trends are 

clear. Both the 2018 IECC and 2021 

IECC have moderate LCC net savings in 

all climate zones in the United States. 

TABLE IV.7—TOTAL LCC NET SAVINGS FOR THE 2018 IECC COMPARED TO THE 2015 IECC 

[2020$] 

Climate zone Total LCC net savings 

(2020$/dwelling-unit) 

1 ................................................................................................................................................................................. $417 

2 ................................................................................................................................................................................. 420 

3 ................................................................................................................................................................................. 548 

4 ................................................................................................................................................................................. 641 

5 ................................................................................................................................................................................. 652 

6 ................................................................................................................................................................................. 706 

7 ................................................................................................................................................................................. 857 

8 ................................................................................................................................................................................. 1,209 

National Average ....................................................................................................................................................... 579 

TABLE IV.8—TOTAL LCC NET SAVINGS FOR THE 2021 IECC COMPARED TO THE 2018 IECC 

[2020$] 

Climate zone Total LCC net savings 

(2020$/dwelling-unit) 

1 ................................................................................................................................................................................. $3,536 

2 ................................................................................................................................................................................. 2,854 

3 ................................................................................................................................................................................. 2,829 

4 ................................................................................................................................................................................. 2,243 

5 ................................................................................................................................................................................. 1,034 

6 ................................................................................................................................................................................. 970 

7 ................................................................................................................................................................................. 3,783 

8 ................................................................................................................................................................................. 6,782 

National Average ....................................................................................................................................................... 2,320 

Table IV.9 combines the total LCC net 

savings associated with the 2018 and 

2021 versions of the IECC. In addition 

to adjusting for inflation (as was done 

for the values in Table IV.7), the 2018 

IECC analysis was adjusted to use the 

same underlying economic assumptions 

as the 2021 IECC, including fuel prices, 

fuel price escalations, labor and material 

costs, and sales tax rates. 

TABLE IV.9—TOTAL LCC NET SAVINGS FOR THE 2021 IECC COMPARED TO THE 2015 IECC 

[2020$] 

Climate zone Total LCC net savings 

(2020$/dwelling-unit) 

1 ................................................................................................................................................................................. $3,946 

2 ................................................................................................................................................................................. 3,241 

3 ................................................................................................................................................................................. 3,354 


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21 DOE—U.S. Department of Energy. 2021. 

Annual Energy Outlook 2021 with Projections to 

2050. Washington, DC. Available at www.eia.gov/ 

outlooks/aeo/. 

22Office 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. 

TABLE IV.9—TOTAL LCC NET SAVINGS FOR THE 2021 IECC COMPARED TO THE 2015 IECC—Continued 

[2020$] 

Climate zone Total LCC net savings 

(2020$/dwelling-unit) 

4 ................................................................................................................................................................................. 2,890 

5 ................................................................................................................................................................................. 1,639 

6 ................................................................................................................................................................................. 1,716 

7 ................................................................................................................................................................................. 4,643 

8 ................................................................................................................................................................................. 7,924 

National Average ....................................................................................................................................................... 2,860 

By multiplying the estimated 3,977 

units of new low-rise Federal 

construction per year by the national 

average values in Table IV.3, Table IV.6, 

and Table IV.9, DOE estimated that the 

total incremental first cost estimate for 

Federal buildings is an increase of $9.1 

million per year, that the total first year 

energy cost estimate is a savings of $0.8 

million per year, and that the annual 

LCC net savings for the entire Federal 

low-rise residential buildings sector are 

estimated to be $11.4 million per year. 

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 IECC 

2015 and the IECC 2021. The NPV is the 

value in the present of a time-series of 

costs and savings, equal to the present 

value of savings in operating cost minus 

the present value of the increased total 

equipment cost to consumers. 

DOE determined the total increased 

equipment cost for each year of the 

analysis period (2022–2051) using the 

incremental construction cost described 

previously. DOE determined the present 

value of operating cost savings for each 

year from the beginning of the analysis 

period to the year when all Federal 

buildings constructed by 2051 have 

been retired, assuming a 30-year lifetime 

of the building. 

The average annual operating cost 

includes the costs for energy, repair or 

replacement of building components 

(e.g., heating and cooling equipment, 

lighting, and envelope measures), and 

maintenance of the building. DOE 

determined the per-unit annual savings 

in operating cost based on the savings 

in energy costs plus replacement and 

maintenance cost savings, which were 

calculated in the underlying costeffectiveness analysis by DOE’s State 

building energy codes program. While 

DOE used the methodology and prices 

described previously 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, natural 

gas, and fuel oil savings in energy 

consumption by the appropriate 

residential energy price from EIA’s 

AEO2021.21 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 

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.22 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 IECC 2021 and the IECC 

2015), discounted to the present, and 

summed throughout the analysis period 

(2022 through 2051). Because new 

construction is held constant through 

the analysis period, the installed cost is 

constant. 

The present value of savings in 

operating cost is the annual savings in 

operating cost (the difference between 

the IECC 2021 and the IECC 2015), 

discounted to the present and summed 

through the analysis period (2022 

through 2051). Savings are decreases in 

operating cost associated with the 

higher energy efficiency associated with 

buildings designed to the IECC 2021 

compared to the IECC 2015. Total 

annual savings in operating cost are the 

savings per square foot multiplied by 

the number of square feet that survive 

in a particular year through the lifetime 

of the buildings constructed in the last 

year of the analysis period. 

B. Monetization of Emissions Reduction 

Benefits 

As part of the development of this 

rule, for the purpose of complying with 

the requirements of Executive Order 

12866, DOE considered the estimated 

monetary benefits from the reduced 

emissions of CO2, CH4, N2O, NOX, and 

SO2 that are expected to result from this 

rule. In order to make this calculation 

analogous to the calculation of the NPV 

of consumer benefit, DOE considered 

the reduced emissions expected to 

result over the lifetime of buildings 

constructed in the analysis period. This 

section summarizes the basis for the 

values used for monetizing the 

emissions benefits and presents the 

values considered in this rule. 

On March 16, 2022, the Fifth Circuit 

Court of Appeals (No. 22–30087) 

granted the federal government’s 

emergency motion for stay pending 

appeal of the February 11, 2022, 

preliminary injunction issued in 

Louisiana v. Biden, No. 21–cv–1074– 

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 


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injunction and present monetized 

benefits where appropriate and 

permissible under law. 

1. Monetization of Greenhouse Gas 

Emissions 

For the purpose of complying with 

the requirements of Executive Order 

12866, DOE estimates the monetized 

benefits of the reductions in emissions 

of CO2, CH4, and N2O by using a 

measure of the social cost (‘‘SC’’) of each 

pollutant (e.g., SC–GHGs). These 

estimates represent the monetary value 

of the net harm to society associated 

with a marginal increase in emissions of 

these pollutants in a given year, or the 

benefit of avoiding that increase. These 

estimates are intended to include (but 

are not limited to) climate-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 

as recommended by applicable 

executive orders and guidance, and DOE 

would reach the same conclusion 

presented in this notice in the absence 

of the social cost of greenhouse gases, 

including the February 2021 Interim 

Estimates presented by the Interagency 

Working Group on the Social Cost of 

Greenhouse Gases. DOE exercises its 

own judgment in presenting monetized 

climate benefits as recommended by 

applicable executive orders, and DOE 

would reach the same conclusion 

presented in this notice in the absence 

of the social cost of greenhouse gases, 

including the February 2021 Interim 

Estimates presented by the Interagency 

Working Group on the Social Cost of 

Greenhouse Gases. 

DOE estimated the global social 

benefits of CO2, CH4, and N2O 

reductions (i.e., SC–GHGs) using the 

estimates presented in the Technical 

Support Document: Social Cost of 

Carbon, Methane, and Nitrous Oxide 

Interim Estimates under Executive 

Order 13990 published in February 

2021 by the Interagency Working Group 

on the Social Cost of Greenhouse Gases 

(IWG) (IWG, 2021). The SC–GHGs is the 

monetary value of the net harm to 

society associated with a marginal 

increase in emissions in a given year, or 

the benefit of avoiding that increase. In 

principle, SC–GHGs includes the value 

of all climate change impacts, including 

(but not limited to) changes in net 

agricultural productivity, human health 

effects, property damage from increased 

flood risk and natural disasters, 

disruption of energy systems, risk of 

conflict, environmental migration, and 

the value of ecosystem services. The 

SC–GHGs therefore, reflects the societal 

value of reducing emissions of the gas 

in question by one metric ton. The SC– 

GHGs is the theoretically appropriate 

value to use in conducting benefit-cost 

analyses of policies that affect CO2, N2O 

and CH4 emissions. As a member of the 

IWG involved in the development of the 

February 2021 SC–GHG TSD), the DOE 

agrees that the interim SC–GHG 

estimates represent the most appropriate 

estimate of the SC–GHG until revised 

estimates have been developed 

reflecting the latest, peer-reviewed 

science. 

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 were using the best 

available science and to promote 

consistency in the social cost of carbon 

(SC–CO2) values used across agencies. 

The IWG published SC–CO2 estimates 

in 2010 that were developed from an 

ensemble of three widely cited 

integrated assessment models (IAMs) 

that estimate global climate damages 

using highly aggregated representations 

of climate processes and the global 

economy combined into a single 

modeling framework. The three IAMs 

were run using a common set of input 

assumptions in each model for future 

population, economic, and CO2

emissions growth, as well as 

equilibrium climate sensitivity (ECS)—a 

measure of the globally averaged 

temperature response to increased 

atmospheric CO2 concentrations. These 

estimates were updated in 2013 based 

on new versions of each IAM. In August 

2016 the IWG published estimates of the 

social cost of methane (SC–CH4) and 

nitrous oxide (SC–N2O) using 

methodologies that are consistent with 

the methodology underlying the SC– 

CO2 estimates. The modeling approach 

that extends the IWG SC–CO2

methodology to non-CO2 GHGs has 

undergone multiple stages of peer 

review. The SC–CH4 and SC–N2O 

estimates were developed by Marten et 

al. (2015) and underwent a standard 

double-blind peer review process prior 

to journal publication. In 2015, as part 

of the response to public comments 

received to a 2013 solicitation for 

comments on the SC–CO2 estimates, the 

IWG announced a National Academies 

of Sciences, Engineering, and Medicine 

review of the SC–CO2 estimates to offer 

advice on how to approach future 

updates to ensure that the estimates 

continue to reflect the best available 

science and methodologies. In January 

2017, the National Academies released 

their final report, Valuing Climate 

Damages: Updating Estimation of the 

Social Cost of Carbon Dioxide, and 

recommended specific criteria for future 

updates to the SC–CO2 estimates, a 

modeling framework to satisfy the 

specified criteria, and both near-term 

updates and longer-term research needs 

pertaining to various components of the 

estimation process (National 

Academies, 2017). 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)). 

On January 20, 2021, President Biden 

issued Executive Order 13990, which reestablished the IWG and directed it to 

ensure that the U.S. Government’s 

estimates of the social cost of carbon 

and other greenhouse gases reflect the 

best available science and the 

recommendations of the National 

Academies (2017). The IWG was tasked 

with first reviewing the SC–GHG 

estimates currently used in Federal 

analyses and publishing interim 

estimates within 30 days of the E.O. that 

reflect the full impact of GHG 

emissions, including by taking global 

damages into account. The interim SC– 

GHG estimates published in February 

2021, specifically the SC–CH4 estimates, 

are used here to estimate the climate 

benefits for this final rule. The E.O. 

instructs the IWG to undertake a fuller 

update of the SC–GHG estimates by 

January 2022 that takes into 

consideration the advice of the National 

Academies (2017) and other recent 

scientific literature. 

The February 2021 SC–GHG TSD 

provides a complete discussion of the 

IWG’s initial review conducted under 

E.O. 13990. In particular, the IWG found 

that the SC–GHG estimates used under 

E.O. 13783 fail to reflect the full impact 

of GHG emissions in multiple ways. 

First, the IWG found that a global 

perspective is essential for SC–GHG 

estimates because it fully captures 

climate impacts that affect the United 

States and which have been omitted 

from prior U.S.-specific estimates due to 


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23For 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. 

methodological constraints. Examples of 

omitted effects include direct effects on 

U.S. citizens, assets, and investments 

located abroad, supply chains, and 

tourism, and spillover pathways such as 

economic and political destabilization 

and global migration. In addition, 

assessing the benefits of U.S. GHG 

mitigation activities requires 

consideration of how those actions may 

affect mitigation activities by other 

countries, as those international 

mitigation actions will provide a benefit 

to U.S. citizens and residents by 

mitigating climate impacts that affect 

U.S. citizens and residents. If the United 

States does not consider impacts on 

other countries, it is difficult to 

convince other countries to consider the 

impacts of their emissions on the United 

States. As a member of the IWG 

involved in the development of the 

February 2021 SC–GHG TSD, DOE 

agrees with this assessment and, 

therefore, in this final rule DOE centers 

attention on a global measure of SC– 

CH4. This approach is the same as that 

taken in DOE regulatory analyses from 

2012 through 2016. Prior to that, in 2008 

DOE presented Social Cost of Carbon 

(SCC) estimates based on values the 

Intergovernmental Panel on Climate 

Change (IPCC) identified in literature at 

that time. As noted in the February 2021 

SC–GHG TSD, the IWG will continue to 

review developments in the literature, 

including more robust methodologies 

for estimating a U.S.-specific SC–GHG 

value, and explore ways to better inform 

the public of the full range of carbon 

impacts. As a member of the IWG, DOE 

will continue to follow developments in 

the literature pertaining to this issue. 

Second, the IWG found that the use of 

the social rate of return on capital (7 

percent under current OMB Circular A– 

4 guidance) to discount the future 

benefits of reducing GHG emissions 

inappropriately underestimates the 

impacts of climate change for the 

purposes of estimating the SC–GHG. 

Consistent with the findings of the 

National Academies (2017) and the 

economic literature, the IWG continued 

to conclude that the consumption rate of 

interest is the theoretically appropriate 

discount rate in an intergenerational 

context (IWG 2010, 2013, 2016a, 2016b), 

and recommended that discount rate 

uncertainty and relevant aspects of 

intergenerational ethical considerations 

be accounted for in selecting future 

discount rates. As a member of the IWG 

involved in the development of the 

February 2021 SC–GHG TSD, DOE 

agrees with this assessment and will 

continue to follow developments in the 

literature pertaining to this issue. 

While the IWG works to assess how 

best to incorporate the latest, peer 

reviewed science to develop an updated 

set of SC–GHG estimates, it set the 

interim estimates to be the most recent 

estimates developed by the IWG prior to 

the group being disbanded in 2017. The 

estimates rely on the same models and 

harmonized inputs and are calculated 

using a range of discount rates. As 

explained in the February 2021 SC– 

GHG TSD, the IWG has recommended 

that agencies to revert to the same set of 

four values drawn from the SC–GHG 

distributions based on three discount 

rates as were used in regulatory analyses 

between 2010 and 2016 and subject to 

public comment. For each discount rate, 

the IWG combined the distributions 

across models and socioeconomic 

emissions scenarios (applying equal 

weight to each) and then selected a set 

of four values recommended for use in 

benefit-cost analyses: An average value 

resulting from the model runs for each 

of three discount rates (2.5 percent, 3 

percent, and 5 percent), plus a fourth 

value, selected as the 95th percentile of 

estimates based on a 3 percent discount 

rate. The fourth value was included to 

provide information on potentially 

higher-than-expected economic impacts 

from climate change. As explained in 

the February 2021 SC–GHG TSD, and 

DOE agrees, this update reflects the 

immediate need to have an operational 

SC–GHG for use in regulatory 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. 

DOE’s derivations of the SC–GHGs 

(i.e., SC–CO2, SC–N2O, and SC–CH4) 

values used for this rule are discussed 

in the following sections, and the results 

of DOE’s analyses estimating the 

benefits of the reductions in emissions 

of these pollutants are presented in 

section VII.A. 

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.10 

shows the updated sets of SC–CO2

estimates from the latest interagency 

update in 5-year increments from 2020 

to 2050. For purposes of capturing the 

uncertainties involved in regulatory 

impact analysis, DOE has determined it 

is appropriate include all four sets of 

SC–CO2 values, as recommended by the 

IWG.23

TABLE IV.10—ANNUAL SC–CO2 VALUES FROM 2021 INTERAGENCY UPDATE, 2020–2050 

[2020$ per Metric Ton CO2] 

Year 

Discount rate 

5% 

average 

3% 

average 

2.5% 

average 

3% 

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 


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24See 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). 

25See 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). 

26 ‘‘Area sources’’ represents all emission sources 

for which states do not have exact (point) locations 

in their emissions inventories. Because exact 

locations would tend to be associated with larger 

sources, ‘‘area sources’’ would be fairly 

representative of small dispersed sources like 

homes and businesses. 

27 ‘‘Area sources’’ are a category in the 2018 

document from EPA, but are not used in the 2021 

document cited above. See: www.epa.gov/sites/ 

default/files/2018-02/documents/ 

sourceapportionmentbpttsd_2018.pdf. 

In calculating the potential global 

benefits resulting from reduced CO2

emissions, DOE used the values from 

the February 2021 TSD, adjusted to 

2020$ using the implicit price deflator 

for gross domestic product (GDP) from 

the Bureau of Economic Analysis. For 

each of the four sets of SC–CO2 cases 

specified, the values for emissions in 

2020 were $14, $51, $76, and $152 per 

metric ton avoided (values expressed in 

2020$). DOE derived values from 2051 

to 2070 based on estimates published by 

EPA.24 These estimates are based on 

methods, assumptions, and parameters 

identical to the 2020–2050 estimates 

published by the IWG. DOE derived 

values after 2070 based on the trend in 

2060–2070 in each of the four cases. 

DOE derived values after 2050 using the 

approach described above for the SC– 

CO2. 

DOE multiplied the CO2 emissions 

reduction estimated for each year by the 

SC–CO2 value for that year in each of 

the four cases. To calculate a present 

value of the stream of monetary values, 

DOE discounted the values in each of 

the four cases using the specific 

discount rate that had been used to 

obtain the SC–CO2 values in each case. 

b. Social Cost of Methane and Nitrous 

Oxide 

The SC–CH4 and SC–N2O values used 

for this rule were generated using the 

values presented in the 2021 update 

from the IWG.25 Table IV.11 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. 

TABLE IV.11—ANNUAL SC–CH4 AND SC–N2O VALUES FROM 2021 INTERAGENCY UPDATE, 2020–2050 

[2020$ per metric ton] 

Year 

SC–CH4

discount rate and statistic 

SC–N2O 

discount rate and statistic 

5% 

average 

3% 

average 

2.5% 

average 

3% 

95th 

percentile 

5% 

average 

3% 

average 

2.5% 

average 

3% 

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 reduction estimated for each 

year by the SC–CH4 and SC–N2O 

estimates for that year in each of the 

cases. To calculate a present value of the 

stream of monetary values, DOE 

discounted the values in each of the 

cases using the specific discount rate 

that had been used to obtain the SC–CH4

and SC–N2O estimates in each case. 

2. Monetization of Other Air Pollutants 

DOE estimated the monetized value of 

NOX and SO2 emissions reductions from 

electricity generation using benefit per 

ton estimates based on air quality 

modeling and concentration-response 

functions conducted for the Clean 

Power Plan final rule. 84 FR 32520. DOE 

used EPA’s values for NOX (as PM2.5) 

and SO2 for 2020, 2025, and 2030 

calculated with discount rates of 3 

percent and 7 percent, and EPA’s values 

for ozone season NOX, which do not 

involve discounting since the impacts 

are in the same year as emissions. DOE 

used linear interpolation to define 

values for the years between 2020 and 

2025 and between 2025 and 2030; for 

years beyond 2030 the values are held 

constant. 

DOE also estimated the monetized 

value of NOX and SO2 emissions 

reductions from site use of natural gas 

in buildings impacted by this rule using 

benefit-per-ton estimates from the EPA’s 

Benefits Mapping and Analysis 

Program. Although none of the sectors 

covered by EPA refers specifically to 

residential and commercial buildings, 

the sector called ‘‘area sources’’ would 

be a reasonable proxy for residential and 

commercial buildings.26 The EPA 

document provides high and low 

estimates for 2025 and 2030 at 3- and 

7-percent discount rates.27 DOE used 

the same linear interpolation and 

extrapolation as it did with the values 

for electricity generation. DOE primarily 

relied on the low estimates to be 

conservative. 

DOE multiplied the emissions 

reduction (in tons) in each year by the 

associated $/ton values, and then 

discounted each series using discount 

rates of 3 percent and 7 percent as 

appropriate. On March 16, 2022, the 

Fifth Circuit Court of Appeals (No. 22– 

30087) granted the federal government’s 

emergency motion for stay pending 

appeal of the February 11, 2022, 

preliminary injunction issued in 

Louisiana v. Biden, No. 21–cv–1074– 

JDC–KK (W.D. La.). As a result of the 

Fifth Circuit’s order, the preliminary 

injunction is no longer in effect, 

pending resolution of the federal 

government’s appeal of that injunction 

or a further court order. Among other 

things, the preliminary injunction 

enjoined the defendants in that case 

from ‘‘adopting, employing, treating as 

binding, or relying upon’’ the interim 

estimates of the social cost of 


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19606 Federal Register / Vol. 87, No. 65 / Tuesday, April 5, 2022 / Rules and Regulations 

28See Interagency Working Group on Social Cost 

of Greenhouse Gases, Technical Support Document: 

Social Cost of Carbon, Methane, and Nitrous Oxide. 

Interim Estimates Under Executive Order 13990, 

Washington, DC, February 2021. https://

www.whitehouse.gov/wp-content/uploads/2021/02/ 

TechnicalSupportDocument_

SocialCostofCarbonMethaneNitrousOxide.pdf. 

29On 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. 

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. 

C. Conclusion 

This analysis results in a cumulative 

net present value (NPV) of total benefits 

of the rule of $0.23 billion (at a 

7-percent discount rate) and $0.50 

billion (at a 3-percent discount rate). 

This NPV expresses the estimated total 

value of future operating cost savings 

minus the estimated increased building 

costs for new Federal construction for 

2022–2051 with a 30-year lifetime and 

includes monetized climate and health 

benefits (see Table IV.12). DOE 

estimates climate benefits from a 

reduction in greenhouse gases (GHG) 

using four different estimates of the 

social cost of CO2 (‘‘SC–CO2’’), the 

social cost of methane (‘‘SC–CH4’’), and 

the social cost of nitrous oxide (‘‘SC– 

N2O’’). Together these represent the 

social cost of GHG (SC–GHG). DOE used 

interim SC–GHG values developed by 

an Interagency Working Group on the 

Social Cost of Greenhouse Gases 

(IWG).28 29 DOE does not have a single 

central SC–GHG point estimate and it 

emphasizes the importance and value of 

considering the benefits calculated 

using all four SC–GHG estimates. DOE 

is currently only monetizing (for SO2

and NOX) PM2.5 precursor health 

benefits and (for NOX) ozone precursor 

health benefits, but will continue to 

assess the ability to monetize other 

effects such as health benefits from 

reductions in direct PM2.5 emissions. 

The benefits and costs of the 

rulemaking can also be expressed in 

terms of annualized values. The 

annualized net benefit is (1) the 

annualized national economic value 

(expressed in 2020$) of the benefits 

from building to IECC 2021, consisting 

primarily of operating cost savings from 

using less energy, minus increases in 

building costs, and (2) the annualized 

monetary value of the benefits of 

climate (GHG) and health (NOX, and 

SO2) emission reductions. Table IV.13 

shows the annualized values for this 

rulemaking, expressed in 2020$. In the 

tables, total benefits for both the 3- 

percent and 7-percent cases are 

presented using the average GHG social 

costs with 3-percent discount rate, but 

the Department emphasizes the 

importance and value of considering the 

benefits calculated using all four SC– 

GHG cases. 

TABLE IV.12—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS (Billion 2020$) 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

3% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................................... 0.391 

Climate Benefits * ................................................................................................................................................................................. 0.114 

Health Benefits ** ................................................................................................................................................................................. 0.177 

Total Benefits † ............................................................................................................................................................................. 0.682 

Consumer Incremental Product Costs †† ..................................................................................................................................... 0.179 

Net Benefits ........................................................................................................................................................................... 0.503 

7% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................................... 0.168 

Climate Benefits * ................................................................................................................................................................................. 0.114 

Health Benefits ** ................................................................................................................................................................................. 0.066 

Total Benefits † ............................................................................................................................................................................. 0.347 

Consumer Incremental Product Costs †† ..................................................................................................................................... 0.113 

Net Benefits ........................................................................................................................................................................... 0.234 

Note: This table presents the costs and benefits associated with Federal new low-rise residential buildings built in 2022–2051. These results 

include benefits to consumers which accrue after 2051 from the buildings constructed in 2022–2051. 

* Climate benefits are calculated using four different estimates of the social cost of carbon (SC–CO2), methane (SC–CH4), and nitrous oxide 

(SC–N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these 

represent the social cost of greenhouse gases (SC–GHG). For presentational purposes of this table, the climate benefits associated with the average SC–GHG at a 3 percent discount rate are shown, but the Department does not have a single central SC–GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four SC–GHG estimates. See section IV.B of this document 

for more details. 

** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing PM2.5 and (for NOX) ozone 

precursor health benefits, but will continue to assess the ability to monetize other effects such as health benefits from reductions in direct PM2.5

emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See IV.B of this document for more details. 


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† Total and net benefits include consumer operating cost savings and benefits related to public health and climate. On March 16, 2022, the 

Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s emergency motion for stay pending appeal of the February 11, 

2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among 

other things, the preliminary injunction enjoined the defendants in that case from ‘‘adopting, employing, treating as binding, or relying upon’’ the 

interim estimates of the social cost of greenhouse gases—which were issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court 

orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law. 

†† Costs include incremental equipment costs as well as installation costs. 

TABLE IV.13—ANNUALIZED MONETIZED BENEFITS, COSTS, AND NET BENEFITS (Million 2020$) 

[2022–2051 plus 30-year lifetime] 

Category 

Million 2020$/year 

3% discount rate 7% discount rate 

Consumer Operating Cost Savings ......................................................................................................... 20.0 13.5 

Climate Benefits * ..................................................................................................................................... 5.8 5.8 

Health Benefits ** ..................................................................................................................................... 9.0 5.3 

Total Benefits † ................................................................................................................................. 34.8 18.8 

Costs †† ............................................................................................................................................ 9.1 9.1 

Net Benefits ............................................................................................................................... 25.7 15.5 

Note: This table presents the costs and benefits associated with Federal new low-rise residential buildings built in 2022–2051. These results 

include benefits to consumers which accrue after 2051 from the buildings constructed in 2022–2051. 

* Climate benefits are calculated using four different estimates of the social cost of carbon (SC–CO2), methane (SC–CH4), and nitrous oxide 

(SC–N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these 

represent the social cost of greenhouse gases (SC–GHG). For presentational purposes of this table, the climate benefits associated with the average SC–GHG at a 3 percent discount rate are shown, but the Department does not have a single central SC–GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four SC–GHG estimates. See section IV.B of this document 

for more details. 

** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as 

health benefits from reductions in direct PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See section IV.B of this document for more details. 

† Total and net benefits include consumer operating cost savings and benefits related to public health and climate. On March 16, 2022, the 

Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s emergency motion for stay pending appeal of the February 11, 

2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among 

other things, the preliminary injunction enjoined the defendants in that case from ‘‘adopting, employing, treating as binding, or relying upon’’ the 

interim estimates of the social cost of greenhouse gases—which were issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court 

orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law. 

†† Costs include incremental equipment costs as well as installation costs. 

Accordingly, DOE has determined 

that the implementation of IECC 2021 

for Federal low-rise residential 

buildings is cost-effective. DOE is 

presenting monetized climate benefits 

in accordance with the applicable 

Executive Orders and DOE would reach 

the same conclusion presented in this 

notice in the absence of the social cost 

of greenhouse gases, including the 

February 2021 Interim Estimates 

presented by the Interagency Working 

Group on the Social Cost of Greenhouse 

Gases. 

V. Compliance Date 

This final rule applies to new Federal 

low-rise residential buildings for which 

design for construction begins on or 

after one year from the publication date 

of this rulemaking in the Federal 

Register. (42 U.S.C. 6834(a)(1)) Such 

buildings must be designed to exceed 

the energy efficiency level of the 

appropriate updated voluntary standard 

by 30 percent if LCC effective. However, 

at a minimum, such buildings must 

achieve the energy efficiency equal to 

that of the appropriate updated 

voluntary standard. One-year lead time 

before the design for construction begins 

is consistent with DOE’s previous 

updates to the energy efficiency 

baselines and the original statutory 

mandate for Federal building standards. 

One year lead time before design for 

construction begins helps to minimize 

compliance costs to agencies, which 

may have planned buildings in various 

stages of design, and allows for design 

changes to more fully consider LCC 

effective measures (as opposed to 

having to revise designs in 

development, which may make 

incorporation of energy efficiency 

measures more difficult or expensive). 

VI. Reference Resources 

DOE originally prepared this list of 

resources to help Federal agencies 

achieve building energy efficiency 

levels of at least 30 percent below the 

2009 IECC. DOE has reviewed these 

resources and believes that they 

continue to be useful for helping 

agencies maximize their energy 

efficiency levels. DOE has updated this 

resource list as appropriate. These 

resources come in many forms and in a 

variety of media. Resources are 

provided for all buildings, as well as 

specifically for low-rise residential 

buildings. FEMP offers an online search 

database of tools that can help agencies 

reduce energy use and meet Federal 

laws and requirements. Tools include 

software, calculators, data sets, and 

databases created by DOE and other 

Federal organizations. This resource can 

be found at www.energy.gov/eere/femp/ 

federal-energy-management-tools. 

(1) Energy Efficient Products—U.S. DOE 

Federal Energy Management Program 

and U.S. Environmental Protection 

Agency (EPA) ENERGY STAR Program 

www.energy.gov/eere/femp/energyefficient-products-and-energy-savingtechnologies 

Federal agencies are required by 

EPAct 2005 and 10 CFR part 436 to 


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30A free read-only version of the 2018 IECC is 

available at https://codes.iccsafe.org/content/ 

IECC2018P4. 

31A free read-only version of the 2021 IECC is 

available at https://codes.iccsafe.org/content/ 

IECC2021P1. 

specify Federal Energy Management 

Program (FEMP) designated or ENERGY 

STAR equipment, including building 

mechanical and lighting equipment and 

builder-supplied appliances, for 

purchase and installation in all new 

construction unless the agency can 

show that the use of such equipment is 

not life-cycle cost-effective. 42 U.S.C. 

8259b(b) Although this rule does not 

specifically address the use of this 

equipment, ENERGY STAR and FEMPdesignated products are generally more 

energy efficient than the corresponding 

minimum manufacturing standards for 

residential-sized appliances and 

equipment, and may be used to achieve 

part of the savings required of Federal 

building designs. Agencies are required 

to use equipment designated as highefficiency by FEMP and/or ENERGY 

STAR, credit may be taken for this 

equipment as part of the Total Building 

Performance compliance path through 

the use of Section R401.2.5 Part 2 of the 

2021 IECC. Credit given in the Total 

Building Performance compliance path 

will depend on whether the equipment 

efficiency required for ENERGY STAR 

and FEMP-designated products meets or 

exceeds the efficiency required for the 

2021 IECC additional efficiency 

packages. In some cases, the efficiency 

required in the 2021 IECC additional 

efficiency packages exceeds the 

efficiency of the ENERGY STAR and 

FEMP-designated equipment, which 

implies that no credit will be given in 

the Total Building Performance 

compliance path. The FEMP websites, 

accessed through the previous links, are 

provided as useful resources for 

achieving part of the energy savings 

required by the rule. 

(2) Life-Cycle Cost Analysis—U.S. DOE 

Federal Energy Management Program 

www.energy.gov/eere/femp/buildinglife-cycle-cost-programs 

The LCC analysis rules promulgated 

in 10 CFR part 436 Subpart A, Life-Cycle 

Cost Methodology and Procedures, 

conform to requirements in the Federal 

Energy Management Improvement Act 

of 1988 (Pub. L. 100–615) and 

subsequent energy conservation 

legislation, as well as Executive Order 

13693, ‘‘Planning for Federal 

Sustainability in the Next Decade.’’ The 

LCC guidance and required discount 

rates and energy price projections are 

determined annually by FEMP and the 

Energy Information Administration, and 

are published in the Annual 

Supplement to The National Institute of 

Standards and Technology Handbook 

135: ‘‘Energy Price Indices and Discount 

Factors for Life-Cycle Cost Analysis.’’ 

(3) ENERGY STAR Buildings—U.S. 

Environmental Protection Agency and 

U.S. Department of Energy 

www.energystar.gov/homes 

ENERGY STAR is a governmentbacked program helping businesses and 

individuals protect the environment 

through superior energy efficiency. The 

EPA program requirements for ENERGY 

STAR-labeled homes, effective as of the 

date of this rule, provide a useful guide 

for meeting the Federal energy 

efficiency standard for low-rise 

residential buildings. 

(4) Passive House Institute US 

www.phius.org/home-page 

This website provides information on 

designing and building very low energy 

homes. 

(5) U.S. DOE Office of Energy Efficiency 

& Renewable Energy—Residential 

Buildings Integration 

www.energy.gov/eere/buildings/ 

residential-buildings-integration 

This website provides information on 

energy efficient home design strategies 

and technologies to support energy 

efficiency in residences. 

(6) 2020 National Green Building 

Standard, ICC 700—ICC and NAHB 

https://shop.iccsafe.org/icc-700-2020- 

national-green-buildingstandardr.html 

The National Green Building 

Standard ICC 700–2020 National Green 

Building Standard® (NGBS) is an 

American National Standards Institute 

(ANSI)-approved, residential 

construction standard for voluntary, 

above-code building certification is a 

green building rating system for homes 

approved by the American National 

Standards Institute. This standard The 

NGBS standard provides requirements 

design and verification direction for 

building high-efficiency and green 

homes and multi-family buildings. 

(7) The NGBS Green Promise 

www.ngbs.com/the-ngbs-green-promise 

The National Green Building 

Standard is a green building rating 

system for homes approved by the 

American National Standards Institute. 

(8) LEED Certification for Residential 

www.usgbc.org/leed/rating-systems/ 

residential 

This certification system provides 

requirements for building highefficiency and green homes and multifamily buildings. 

(9) Green Globes—The Green Building 

Initiative 

www.thegbi.org/ 

This certification provides 

requirements for building highefficiency and green multi-family 

buildings. 

(10) 2018 IECC—ICC 

https://shop.iccsafe.org/codes/2018- 

international-codes-and-references/

2018-international-energyconservation-code.html 30

The interim energy efficiency 

standard for low-rise residential 

buildings between the 2015 IECC and 

the 2021 IECC is the 2018 IECC. 

(11) 2021 IECC—ICC 

https://shop.iccsafe.org/codes/2021- 

international-codes-and-references/ 

2021-international-energyconservation-coder.html 31

The energy efficiency standard for 

low-rise residential buildings is the 

2021 IECC. 

(12) Whole Building Design Guide— 

National Institute of Building Sciences 

www.wbdg.org/ 

A portal providing one-stop access to 

up-to-date information on a wide range 

of building-related guidance, criteria, 

and technology from a ‘‘whole 

buildings’’ perspective. 

VII. Regulatory Analysis 

A. Review Under Executive Order 

12866, ‘‘Regulatory Planning and 

Review’’ 

This final rule is a ‘‘significant 

regulatory action’’ under Executive 

Order 12866, ‘‘Regulatory Planning and 

Review.’’ 58 FR 51735 (October 4, 1993). 

Accordingly, this action was subject to 

review by the Office of Information and 

Regulatory Affairs (OIRA) in the Office 

of Management and Budget (OMB). 

OMB has completed its review. As 

discussed previously in this rule, DOE 

is required to determine, based on the 

cost-effectiveness, whether the 

standards for Federal buildings should 

be updated to reflect an amendment to 

the IECC standard. As stated in the 

preamble, DOE complied with the 

statutory language by analyzing the costeffectiveness of the 2018 IECC and the 

2021 IECC, and through DOE’s 

involvement in the ICC code 

development process. 


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32 DOE also prepared an EA for this rule that 

details the environmental impacts, including 

emissions reductions, of the rule. Environmental 

Assessment for Final Rule, 10 CFR part 435, ‘Energy 

Efficiency Standards for New Federal Low-Rise 

Residential Buildings,’ Baseline Standards Update. 

The EA may be found in the docket for this 

rulemaking and at www.energy.gov/nepa/doeea2166-energy-efficiency-standards-new-federal-lowrise-residential-buildings-baseline. 

DOE has also reviewed this regulation 

pursuant to Executive Order 13563, 

issued on January 18, 2011. 76 FR 3281 

(January 21, 2011). E.O. 13563 is 

supplemental to, and explicitly 

reaffirms the principles, structures, and 

definitions governing regulatory review 

established in Executive Order 12866. 

Review under Executive Order 12866 

requires an analysis of the economic 

effect of the rule. For this purpose, DOE 

estimated incremental first cost (in this 

case, the difference between the cost of 

a building designed to meet the 2021 

IECC and a building designed to meet 

the 2015 IECC) for the Federal low-rise 

residential buildings sector, as well as 

LCC net savings. Because this update 

incorporates changes made in the 2018 

and 2021 IECC codes, DOE has adjusted 

the IECC 2018 analyses to use the same 

underlying economic assumptions (e.g., 

fuel price escalations, labor rates, etc.) 

as the IECC 2021 analysis in order to 

estimate the cumulative impact of the 

two code changes. First, DOE estimated 

that the annual full fuel cycle national 

energy savings would be 0.074 trillion 

Btu (associated with one year of Federal 

construction), that the cumulative (over 

the 30-year analysis period) full fuel 

cycle national energy savings would be 

0.060 quadrillion Btu, and that the 

cumulative (including building lifetime 

savings) full fuel cycle national energy 

savings would be 0.063 quadrillion Btu. 

Based on these energy savings and using 

the methodology described in section IV 

of this document, DOE estimated the 

resulting incremental first cost, first year 

energy cost savings, and annual LCC net 

savings. DOE estimated that the total 

incremental first cost is an increase of 

$9.1 million per year, with an average 

first cost increase of $2,296 per 

household. DOE estimated $11.3 million 

in annual LCC net savings for the entire 

Federal low-rise residential buildings 

sector with an average LCC net savings 

of $2,860 per household.32

Table VII.1 shows the monetized 

economic benefits and costs expected to 

result from this rulemaking. Using a 

7-percent discount rate for consumer 

benefits and costs and health benefits, 

and a 3-percent discount rate case for 

GHG social (climate) costs, the 

estimated cost of this rulemaking is 

$0.113 billion in increased equipment 

costs, while the estimated benefits are 

$0.168 billion in reduced equipment 

operating costs, $0.114 billion in 

climate benefits, and $0.066 billion in 

health benefits. In this case, the net 

benefit amounts to $0.234 billion. Using 

a 3-percent discount rate for all benefits 

and costs, the estimated cost of this 

rulemaking is $0.179 billion in 

increased equipment costs, while the 

estimated benefits are $0.391 billion in 

reduced equipment operating costs, 

$0.114 billion in climate benefits, and 

$0.177 billion in health benefits. In this 

case, the net benefit amounts to $0.503 

billion. 

Table VII.2 shows the annualized 

monetized economic benefits and costs 

expected to result from this rulemaking. 

Using a 7-percent discount rate for 

consumer benefits and costs and health 

benefits, and a 3-percent discount rate 

case for GHG social (climate) costs, the 

estimated cost of this rulemaking is $9.1 

million per year in increased equipment 

costs, while the estimated annual 

benefits are $13.5 million in reduced 

equipment operating costs, $5.8 million 

in climate benefits, and $5.3 million in 

health benefits. In this case, the net 

benefit amounts to $15.5 million per 

year. Using a 3-percent discount rate for 

all benefits and costs, the estimated cost 

of this rulemaking is $9.1 million per 

year in increased equipment costs, 

while the estimated annual benefits are 

$20.0 million in reduced equipment 

operating costs, $5.8 million in climate 

benefits, and $9.0 million in health 

benefits. In this case, the net benefit 

amounts to $25.7 million per year. 

TABLE VII.1—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS (BILLION 2020$) 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

3% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................................... 0.391 

Climate Benefits * ................................................................................................................................................................................ 0.114 

Health Benefits ** ................................................................................................................................................................................ 0.177 

Total Benefits † ............................................................................................................................................................................ 0.682 

Consumer Incremental Product Costs †† .................................................................................................................................... 0.179 

Net Benefits ........................................................................................................................................................................... 0.503 

7% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................................... 0.168 

Climate Benefits * ................................................................................................................................................................................ 0.114 

Health Benefits ** ................................................................................................................................................................................ 0.066 

Total Benefits † ............................................................................................................................................................................ 0.347 

Consumer Incremental Product Costs †† .................................................................................................................................... 0.113 

Net Benefits ........................................................................................................................................................................... 0.234 

Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-rise buildings built in 2022– 

2051. These results include benefits to consumers which accrue after 2051 from the buildings constructed in 2022–2051. 


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* Climate benefits are calculated using four different estimates of the social cost of carbon (SC–CO2), methane (SC–CH4), and nitrous oxide 

(SC–N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these 

represent the social cost of greenhouse gases (SC–GHG). For presentational purposes of this table, the climate benefits associated with the average SC–GHG at a 3 percent discount rate are shown, but the Department does not have a single central SC–GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four SC–GHG estimates. See section IV.B of this document 

for more details. 

** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as 

health benefits from reductions in direct PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See section IV.B of this document for more details. 

† Total and net benefits include consumer operating cost savings and benefits related to public health and climate. On March 16, 2022, the 

Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s emergency motion for stay pending appeal of the February 11, 

2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among 

other things, the preliminary injunction enjoined the defendants in that case from ‘‘adopting, employing, treating as binding, or relying upon’’ the 

interim estimates of the social cost of greenhouse gases—which were issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court 

orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law. † 

Costs include incremental equipment costs as well as installation costs. 

TABLE VII.2—ANNUALIZED MONETIZED BENEFITS, COSTS, AND NET BENEFITS (MILLION 2020$) 

[2022–2051 plus 30-Year Lifetime] 

Category 

Million 2020$/year 

3% Discount rate 7% Discount rate 

Consumer Operating Cost Savings ......................................................................................................... 20.0 13.5 

Climate Benefits * .................................................................................................................................... 5.8 5.8 

Health Benefits ** .................................................................................................................................... 9.0 5.3 

Total Benefits† .................................................................................................................................. 34.8 24.6 

Costs†† ............................................................................................................................................. 9.1 9.1 

Net Benefits ............................................................................................................................... 25.7 15.5 

Note: This table presents the costs and benefits associated with Federal new commercial and multi-family high-rise buildings built in 2022– 

2051. These results include benefits to consumers which accrue after 2051 from the buildings constructed in 2022–2051. 

* Climate benefits are calculated using four different estimates of the social cost of carbon (SC–CO2), methane (SC–CH4), and nitrous oxide 

(SC–N2O) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3 percent discount rate). Together these 

represent the social cost of greenhouse gases (SC–GHG). For presentational purposes of this table, the climate benefits associated with the average SC–GHG at a 3 percent discount rate are shown, but the Department does not have a single central SC–GHG point estimate, and it emphasizes the importance and value of considering the benefits calculated using all four SC–GHG estimates. See section IV.B of this document 

for more details. 

** Health benefits are calculated using benefit-per-ton values for NOX and SO2. DOE is currently only monetizing (for SO2 and NOX) PM2.5 precursor health benefits and (for NOX) ozone precursor health benefits, but will continue to assess the ability to monetize other effects such as 

health benefits from reductions in direct PM2.5 emissions. The health benefits are presented at real discount rates of 3 and 7 percent. See section IV.B of this document for more details. 

† Total and net benefits include consumer operating cost savings and benefits related to public health and climate. On March 16, 2022, the 

Fifth Circuit Court of Appeals (No. 22–30087) granted the federal government’s emergency motion for stay pending appeal of the February 11, 

2022, preliminary injunction issued in Louisiana v. Biden, No. 21–cv–1074–JDC–KK (W.D. La.). As a result of the Fifth Circuit’s order, the preliminary injunction is no longer in effect, pending resolution of the federal government’s appeal of that injunction or a further court order. Among 

other things, the preliminary injunction enjoined the defendants in that case from ‘‘adopting, employing, treating as binding, or relying upon’’ the 

interim estimates of the social cost of greenhouse gases—which were issued by the Interagency Working Group on the Social Cost of Greenhouse Gases on February 26, 2021—to monetize the benefits of reducing greenhouse gas emissions. In the absence of further intervening court 

orders, DOE will revert to its approach prior to the injunction and present monetized benefits where appropriate and permissible under law. 

†† Costs include incremental equipment costs as well as installation costs. 

B. Review Under the Administrative 

Procedure Act 

This rule, which updates energy 

efficiency performance standards for the 

design and construction of new Federal 

buildings, is a rule relating to public 

property, and therefore is not subject to 

the rulemaking requirements of the 

Administrative Procedure Act, 

including the requirement to publish a 

notice of proposed rulemaking. (See 5 

U.S.C. 553(a)(2)) 

C. Review Under the Regulatory 

Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) requires the 

preparation of an initial regulatory 

flexibility analysis for any rule that by 

law must be proposed for public 

comment, unless the agency certifies 

that the rule, if promulgated, will not 

have a significant economic impact on 

a substantial number of small entities. 

As required by Executive Order 13272, 

‘‘Proper Consideration of Small Entities 

in Agency Rulemaking,’’ 67 FR 53461 

(August 16, 2002), DOE published 

procedures and policies on February 19, 

2003, to ensure that the potential 

impacts of its rules on small entities are 

properly considered during the 

rulemaking process. 68 FR 7990. DOE 

has made its procedures and policies 

available on the Office of General 

Counsel’s website: https://energy.gov/ 

gc/office-general-counsel. 

As noted above, DOE has determined 

that a notice of proposed rulemaking is 

not required by 5 U.S.C. 553 or any 

other law for issuance of this rule. As 

such, the analytical requirements of the 

Regulatory Flexibility Act do not apply. 

5 U.S.C. 605(b). 

D. Review Under the Paperwork 

Reduction Act of 1995 

This rulemaking will impose no new 

information or record keeping 

requirements. Accordingly, OMB 

clearance is not required under the 

Paperwork Reduction Act. (44 U.S.C. 

3501 et seq.) 


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33The EA may be found in the docket for this 

rulemaking and at www.energy.gov/nepa/doeea2166-energy-efficiency-standards-new-federal-lowrise-residential-buildings-baseline. 

E. Review Under the National 

Environmental Policy Act of 1969 

DOE prepared an EA (DOE/EA–2166) 

entitled, ‘‘Environmental Assessment 

for Final Rule, 10 CFR part 435, ‘Energy 

Efficiency Standards for New Federal 

Low-Rise Residential Buildings,’ 

Baseline Standards Update,’’ 33 pursuant 

to the Council on Environmental 

Quality’s (CEQ) Regulations for 

Implementing the Procedural Provisions 

of the National Environmental Policy 

Act (40 CFR parts 1500–1508), the 

National Environmental Policy Act of 

1969 (NEPA), as amended (42 U.S.C. 

4321 et seq.), and DOE’s NEPA 

Implementing Procedures (10 CFR part 

1021). 

The EA addresses the possible 

incremental environmental effects 

attributable to the application of the 

final rule. The only anticipated impact 

would be a decrease in outdoor air 

pollutants resulting from decreased 

fossil fuel consumption, either directly 

consumed on site or indirectly when 

used to generate energy that is 

consumed in Federal buildings. 

Therefore, DOE has issued a finding of 

no significant impact (FONSI), pursuant 

to NEPA, the regulations of the Council 

on Environmental Quality (40 CFR parts 

1500–1508), and DOE’s regulations for 

compliance with NEPA (10 CFR part 

1021). 

To identify the potential 

environmental impacts that may result 

from implementing the final rule on 

new Federal low-rise residential 

buildings, DOE compared the 

requirements of the final rule updating 

energy efficiency performance standards 

for Federal new low-rise residential 

buildings to 2021 IECC with the ‘‘noaction alternative’’ of using the current 

Federal standards (the 2015 IECC). This 

comparison is identical to that 

undertaken by DOE in its 

determinations of energy savings of 

those standards and codes. 

Accordingly, DOE concludes in the 

EA that new Federal buildings designed 

and constructed to the 2021 IECC will 

use less energy than new Federal 

buildings designed and constructed to 

the 2015 IECC because the 2021 IECC is 

more efficient than 2015 IECC. This 

decrease in energy usage translates to 

reduced emissions of carbon dioxide 

(CO2), nitrogen oxides (NOX), and 

mercury (Hg) over the 30-year period 

examined in the EA. As reported in the 

EA, cumulative emission reductions for 

30 years of construction and operation 

for Federal buildings built during that 

period (2022 through 2051) were 

estimated at up to 1.3 million metric 

tons of CO2, up to 2.3 thousand tons of 

NOX, up to 0.002 tons of Hg, up to 10.8 

thousand tons of CH4, up to 0.4 

thousand tons of SO2, and up to 0.01 

thousand tons of N2O. In conducting the 

net benefits analysis, DOE also 

calculated the energy savings and 

associated emissions corresponding to 

the analysis period plus the lifetime of 

the building (30 years) to capture the 

full benefits stream associated with 

Federal buildings constructed from 2022 

through 2051. For 30 years of 

construction and operation including 

building lifetime, cumulative emission 

reductions were estimated at up to 2.5 

million metric tons of CO2, up to 4.3 

thousand tons of NOX, up to 0.004 tons 

of Hg, up to 20.8 thousand tons of CH4, 

up to 0.8 thousand tons of SO2, and up 

to 0.02 thousand tons of N2O. 

F. Review under Executive Order 13132, 

‘‘Federalism’’ 

Executive Order 13132, ‘‘Federalism,’’ 

64 FR 43255 (August 4, 1999), imposes 

certain requirements on agencies 

formulating and implementing policies 

or regulations that preempt State law or 

that have federalism implications. The 

Executive order requires agencies to 

examine the constitutional and statutory 

authority supporting any action that 

would limit the policymaking discretion 

of the States and to carefully assess the 

necessity for such actions. The 

Executive order also requires agencies to 

have an accountable process to ensure 

meaningful and timely input by State 

and local officials in the development of 

regulatory policies that have federalism 

implications. On March 14, 2000, DOE 

published a statement of policy 

describing the intergovernmental 

consultation process it will follow in the 

development of such regulations. 65 FR 

13735. DOE examined this rule and 

determined that it does not preempt 

State law and does not have a 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. No further action 

is required by Executive Order 13132. 

G. Review Under Executive Order 

12988, ‘‘Civil Justice Reform’’ 

With respect to the review of existing 

regulations and the promulgation of 

new regulations, section 3(a) of 

Executive Order 12988, ‘‘Civil Justice 

Reform,’’ 61 FR 4729 (February 7, 1996), 

imposes on Federal agencies the general 

duty to adhere to the following 

requirements: (1) Eliminate drafting 

errors and ambiguity, (2) write 

regulations to minimize litigation, and 

(3) provide a clear legal standard for 

affected conduct, rather than a general 

standard and promote simplification 

and burden reduction. Section 3(b) of 

Executive Order 12988 specifically 

requires that Executive agencies make 

every reasonable effort to ensure that the 

regulation (1) clearly specifies the 

preemptive effect, if any; (2) clearly 

specifies any effect on existing Federal 

law or regulation; (3) provides a clear 

legal standard for affected conduct, 

while promoting simplification and 

burden reduction; (4) specifies the 

retroactive effect, if any; (5) adequately 

defines key terms; and (6) addresses 

other important issues affecting clarity 

and general draftsmanship under any 

guidelines issued by the Attorney 

General. Section 3(c) of Executive Order 

12988 requires Executive agencies to 

review regulations in light of applicable 

standards in section 3(a) and section 

3(b) to determine whether they are met 

or if it is unreasonable to meet one or 

more of them. DOE has completed the 

required review and determined that, to 

the extent permitted by law, this rule 

meets the relevant standards of 

Executive Order 12988. 

H. Review Under the Unfunded 

Mandates Reform Act of 1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) (Pub. L. 

104–4) requires each Federal agency to 

assess the effects of Federal regulatory 

actions on State, local, and tribal 

governments as well as the private 

sector. For a proposed regulatory action 

likely to result in a rule that may cause 

the expenditure by State, local, and 

tribal governments, in the aggregate, or 

by the private sector of $100 million or 

more in any one year (adjusted annually 

for inflation), section 202 of UMRA 

requires a Federal agency to publish a 

written statement that estimates the 

resulting costs, benefits, and other 

effects on the national economy. (2 

U.S.C. 1532(a) and (b)) The UMRA also 

requires a Federal agency to develop an 

effective process to permit timely input 

by elected officers of State, local, and 

tribal governments on a proposed 

‘‘significant intergovernmental 

mandate’’ and requires an agency plan 

for giving notice and opportunity for 

timely input to potentially affected 

small governments before establishing 

any requirements that might 

significantly or uniquely affect small 

governments. On March 18, 1997, DOE 

published a statement of policy on its 

process for intergovernmental 

consultation under UMRA (62 FR 


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34See Table A4 of the 2021 Annual Energy 

Outlook at www.eia.gov/outlooks/aeo/excel/ 

aeotab_4.xlsx. 

35See EA for this rule for the origin of the federal 

residential construction estimate. 

12820) (also available at https://

energy.gov/gc/office-general-counsel). 

This final rule contains neither an 

intergovernmental mandate nor a 

mandate that may result in the 

expenditure of $100 million or more in 

any year by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, so these requirements 

under the Unfunded Mandates Reform 

Act do not apply. 

I. Review Under the Treasury and 

General Government Appropriations 

Act of 1999 

Section 654 of the Treasury and 

General Government Appropriations 

Act of 1999 (Pub. L. 105–277) requires 

Federal agencies to issue a Family 

Policymaking Assessment for any rule 

that may affect family well-being. This 

final rule would not have any impact on 

the autonomy or integrity of the family 

as an institution. Accordingly, DOE has 

concluded that it is not necessary to 

prepare a Family Policymaking 

Assessment. 

J. Review Under Executive Order 12630, 

‘‘Governmental Actions and 

Interference With Constitutionally 

Protected Property Rights’’ 

DOE has determined, under Executive 

Order 12630, ‘‘Governmental Actions 

and Interference with Constitutionally 

Protected Property Rights’’ 53 FR 8859 

(March 18, 1988), that this rule would 

not result in any takings that might 

require compensation under the Fifth 

Amendment to the United States 

Constitution. 

K. Review Under the Treasury and 

General Government Appropriations 

Act, 2001 

Section 515 of the Treasury and 

General Government Appropriations 

Act, 2001 (44 U.S.C. 3516, note) 

provides for agencies to review most 

disseminations of information to the 

public under guidelines established by 

each agency pursuant to general 

guidelines issued by OMB. OMB’s 

guidelines were published at 67 FR 

8452 (February 22, 2002), and DOE’s 

guidelines were published at 67 FR 

62446 (October 7, 2002). DOE has 

reviewed this final rule under the OMB 

and DOE guidelines and has concluded 

that it is consistent with applicable 

policies in those guidelines. 

L. Review Under Executive Order 13211, 

‘‘Actions Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use’’ 

Executive Order 13211, ‘‘Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use,’’ 66 FR 28355 (May 

22, 2001), requires Federal agencies to 

prepare and submit to OIRA, a 

Statement of Energy Effects for any 

proposed significant energy action. A 

‘‘significant energy action’’ is defined as 

any action by an agency that 

promulgated or is expected to lead to 

promulgation of a final rule, and that (1) 

is a significant regulatory action under 

Executive Order 12866, or any successor 

order; and (2) is likely to have a 

significant adverse effect on the supply, 

distribution, or use of energy; or (3) is 

designated by the Administrator of 

OIRA as a significant energy action. For 

any proposed significant energy action, 

the agency must give a detailed 

statement of any adverse effects on 

energy supply, distribution, or use 

should the proposal be implemented, 

and of reasonable alternatives to the 

action and their expected benefits on 

energy supply, distribution, and use. 

DOE’s Energy Information 

Administration (EIA) estimates singlefamily and multi-family households in 

the residential sector will be 

approximately 120 million households 

averaging 1,800 square feet in the 

United States in 2022, with a growth 

rate of roughly 0.7 percent per year, 

which is equivalent to about 832,000 

new households or approximately 1.5 

billion square feet per year.34 This rule 

is expected to incrementally reduce the 

energy usage of approximately 9.78 

million square feet 35 of Federal low-rise 

residential construction annually. Thus, 

the rule represents approximately 0.65 

percent of the expected annual U.S. 

construction in 2022, and less in every 

succeeding year. This final rule would 

not have a significant adverse effect on 

the supply, distribution, or use of 

energy and, therefore, is not a 

significant energy action. Accordingly, 

DOE has not prepared a Statement of 

Energy Effects. 

M. Review Under Section 32 of the 

Federal Energy Administration Act of 

1974 

Under section 301 of the DOE 

Organization Act (Pub. L. 95–91), DOE 

must comply with section 32 of the 

Federal Energy Administration Act of 

1974 (Pub. L. 93–275), as amended by 

the Federal Energy Administration 

Authorization Act of 1977 (Pub. L. 95– 

70). (15 U.S.C. 788) Section 32 provides 

that where a proposed rule authorizes or 

requires use of commercial standards, 

the NOPR must inform the public of the 

use and background of such standards. 

In addition, section 32(c) requires DOE 

to consult with the Department of 

Justice (DOJ) and the Federal Trade 

Commission (FTC) concerning the 

impact of the commercial or industry 

standards on competition. 

Although section 32 specifically refers 

to the proposed rule stage, DOE is 

meeting these requirements at the final 

rule stage because there was no 

proposed rule for this action. This final 

rule incorporates testing methods 

contained in the following commercial 

standard: ICC 2021 IECC, International 

Energy Conservation Code, 2020, 

International Code Council, ISBN 978– 

1–60983–749–5. 

DOE has evaluated these standards 

and notes that the IECC Standard is 

developed under ICC’s governmental 

consensus standard procedures and is 

under a three-year maintenance cycle. 

ICC has established a program for 

regular publication of errata and 

revisions, including procedures for 

timely, documented, consensus action 

on requested changes to the IECC. The 

2018 IECC was published in 2017 and 

the 2021 IECC was published in 2020. 

However, DOE is unable to conclude 

whether the IECC fully complies with 

the requirements of section 32(b) of the 

FEAA (i.e., whether they were 

developed in a manner that fully 

provides for public participation, 

comment, and review). DOE has 

consulted with both the Attorney 

General and the Chairman of the FTC 

about the impact on competition of 

using the methods contained in these 

standards and has received no 

comments objecting to their use. 

N. Description of Materials Incorporated 

by Reference 

In this final rule, DOE incorporates by 

reference the ICC 2021 International 

Energy Conservation Code, (IECC), 

Redline Version, copyright 2021. This 

U.S. standard provides minimum 

requirements for energy-efficient 

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. 


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VIII. Congressional Notification 

As required by 5 U.S.C. 801, DOE will 

report to Congress on the promulgation 

of this rule prior to its effective date. 

The report will state that it has been 

determined that the rule is not a ‘‘major 

rule’’ as defined by 5 U.S.C. 804(2). 

IX. Approval of the Office of the 

Secretary 

The Secretary of Energy has approved 

publication of this final rule. 

List of Subjects in 10 CFR Part 435 

Buildings and facilities, Energy 

conservation, Federal buildings and 

facilities, Housing, Incorporation by 

reference. 

Signing Authority 

This document of the DOE was signed 

on March 28, 2022, by Kelly J. SpeakesBackman, Principal Deputy Assistant 

Secretary for Energy Efficiency and 

Renewable Energy, pursuant to 

delegated authority from the Secretary 

of Energy. That document, with the 

original signature and date, is 

maintained by DOE. For administrative 

purposes only, and in compliance with 

requirements of the Office of the Federal 

Register, the undersigned DOE Federal 

Register Liaison Officer has been 

authorized to sign and submit the 

document in electronic format for 

publication, as an official document of 

the DOE. This administrative process in 

no way alters the legal effect of this 

document upon publication in the 

Federal Register. 

Signed in Washington, DC, on March 31, 

2022. 

Treena V. Garrett, 

Federal Register Liaison Officer, U.S. 

Department of Energy. 

For the reasons set forth in the 

preamble, the Department of Energy 

amends part 435 of chapter II of title 10 

of the Code of Federal Regulations as set 

forth below: 

PART 435—ENERGY EFFICIENCY 

STANDARDS FOR THE DESIGN AND 

CONSTRUCTION OF NEW FEDERAL 

LOW–RISE RESIDENTIAL BUILDINGS 

■ 1. 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. 

■ 2. Section 435.2 is amended by: 

■ a. Removing in the definition for 

‘‘IECC Baseline Building 2004’’, the text 

‘‘ICC International Energy Conservation 

Code, 2004 Supplement Edition, 

January 2005’’ and adding, in its place, 

the text ‘‘ICC IECC 2004’’; 

■ b. Removing in the definition for 

‘‘IECC Baseline Building 2009’’, the text 

‘‘ICC International Energy Conservation 

Code, 2009 Edition, January 2009’’ and 

adding, in its place, the text ‘‘ICC IECC 

2009’’; and 

■ c. Adding in alphanumerical order a 

definition for ‘‘IECC Baseline Building 

2021’’. 

The addition reads as follows: 

§ 435.2 Definitions. 

* * * * * 

IECC Baseline Building 2021 means a 

building that is otherwise identical to 

the proposed building but is designed to 

meet, but not exceed, the energy 

efficiency specifications in the ICC IECC 

2021 (incorporated by reference, see 

§ 435.3). 

* * * * * 

■ 3. Section 435.3 is amended by 

revising paragraph (a) and adding 

paragraph (b)(4) to read as follows: 

§ 435.3 Materials incorporated by 

reference. 

(a) Certain material is incorporated by 

reference into this subpart with the 

approval of the Director of the Federal 

Register in accordance with 5 U.S.C. 

552(a) and 1 CFR part 51. To enforce 

any edition other than that specified in 

this section, DOE must publish a 

document in the Federal Register and 

the material must be available to the 

public. All approved material is 

available for inspection at DOE, and at 

the National Archives and Records 

Administration (NARA). Contact DOE 

at: The U.S. Department of Energy, 

Office of Energy Efficiency and 

Renewable Energy, Building 

Technologies Program, Sixth Floor, 950 

L’Enfant Plaza SW, Washington, DC 

20024, (202) 586–9127, Buildings@

ee.doe.gov, https://www.energy.gov/ 

eere/buildings/building-technologiesoffice. For information on the 

availability of this material at NARA, 

email: fr.inspection@nara.gov, or go to: 

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. The material may be 

obtained from the sources in the 

following paragraphs of this section. 

(b) * * * 

(4) ICC 2021 International Energy 

Conservation Code (IECC), Redline 

Version, Copyright 2021, (‘‘IECC 2021’’), 

IBR approved for §§ 435.2, 435.4, and 

435.5. 

■ 4. Section 435.4 is amended by: 

■ a. Revising paragraph (a)(3) 

introductory text; 

■ b. Removing in paragraph (a)(3)(i), the 

text ‘‘2015 IECC’’ and adding in its place 

the text ‘‘IECC 2015’’; and 

■ c. Adding paragraph (a)(4). 

The revision and addition reads as 

follows: 

§ 435.4 Energy efficiency performance 

standard. 

(a) * * * 

(3) All Federal agencies shall design 

new Federal buildings that are low-rise 

residential buildings, for which design 

for construction began on or after 

January 10, 2018, but before April 5, 

2023 to: 

* * * * * 

(4) All Federal agencies shall design 

new Federal buildings that are low-rise 

residential buildings, for which design 

for construction began on or after April 

5, 2023 to: 

(i) Meet the IECC 2021, (incorporated 

by reference, see § 435.3); and 

(ii) If life-cycle cost-effective, achieve 

energy consumption levels, calculated 

consistent with paragraph (b) of this 

section, that are at least 30 percent 

below the levels of the IECC Baseline 

Building 2021. 

* * * * * 

■ 5. Section 435.5 is amended by 

revising paragraph (c) and adding 

paragraph (d) to read as follows: 

§ 435.5 Performance level determination. 

* * * * * 

(c) For new Federal buildings for 

which design for construction began on 

or after January 10, 2018 but before 

April 5, 2023 each Federal agency shall 

determine energy consumption levels 

for both the IECC Baseline Building 

2015 and proposed building by using 

the Simulated Performance Alternative 

found in section R405 of the IECC 2015 

(incorporated by reference, see § 435.3). 

(d) For new Federal buildings for 

which design for construction began on 

or after April 5, 2023 each Federal 

agency shall determine energy 

consumption levels for both the IECC 

Baseline Building 2021 and proposed 

building by using the Simulated 

Performance Alternative found in 

section R405 of the IECC 2021 

(incorporated by reference, see § 435.3). 

[FR Doc. 2022–07138 Filed 4–4–22; 8:45 am] 

BILLING CODE 6450–01–P 


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