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

20267 

Vol. 87, No. 67 

Thursday, April 7, 2022 

DEPARTMENT OF ENERGY 

10 CFR Part 433 

[EERE–2022–BT–STD–0012] 

RIN 1904–AE44 

Baseline Energy Efficiency Standards 

Update for New Federal Commercial 

and Multi-Family High-Rise Residential 

Buildings 

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 commercial 

and multi-family high-rise residential 

buildings. This rule updates the 

baseline Federal commercial standard to 

the American Society of Heating, 

Refrigerating, and Air-Conditioning 

Engineers (ASHRAE) Standard 90.1– 

2019. 

DATES: This rule is effective June 6, 

2022. 

The incorporation by reference of 

certain material listed in this rule is 

approved by the Director of the Federal 

Register as of June 6, 2022. The 

incorporation by reference of certain 

other material listed in this rule was 

approved by the Director of the Federal 

Register through January 5, 2016. 

All Federal agencies shall design new 

Federal buildings that are commercial 

and multi-family high-rise residential 

buildings, for which design for 

construction began on or after April 7, 

2023, using ASHRAE Standard 90.1– 

2019 as the baseline standard for 10 CFR 

part 433. 

ADDRESSES: The docket, which includes 

this Federal Register notice and other 

supporting documents/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. 

This rulemaking can be identified by 

docket number EERE–2022–BT–STD– 

0012 and/or RIN number 1904–AE44. A 

link to the docket web page can be 

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

notices-and-rules-related-federalenergy-management. The docket web 

page contains instructions on how to 

access all documents, including public 

comments, in the docket. 

FOR FURTHER INFORMATION CONTACT: 

For technical issues: 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. 

For legal issues: 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 a previously approved 

incorporation by reference and 

incorporates by reference the following 

standard into 10 CFR part 433: 

ANSI/ASHRAE/IES Standard 90.1– 

2013, Energy Standard for Buildings 

Except Low-Rise Residential 

Buildings, I–P Edition, Copyright 

2013. 

ANSI/ASHRAE/IES Standard 90.1– 

2019, Energy Standard for Buildings 

Except Low-Rise Residential 

Buildings, I–P Edition, Copyright 

2019. 

Copies of ANSI/ASHRAE/IES Standards 

90.1–2013 and 2019 can be obtained 

from ASHRAE, Inc., 1791 Tullie 

Circle, NE, Atlanta, GA 30329, or 

www.ashrae.org. 

For a further discussion of these 

standards, see section VII.N of this 

document. 

Table of Contents 

I. Summary of the Final Rule 

II. Introduction 

A. Energy Conservation and Production 

Act Requirements 

B. ASHRAE Standard 90.1 

C. Regulatory Requirements of 10 CFR Part 

433 

D. Synopsis of Changes to ASHRAE 

Standard 90.1 Between ASHRAE 

Standard 90.1–2013 and ASHRAE 

Standard 90.1–2019 

1. Changes in ASHRAE From Standard 

90.1–2013 to Standard 90.1–2016 

a. Fixed Baseline 

b. Revisions and Additions to the Formula 

for Demonstrating Compliance With the 

Appendix G Performance Rating Method 

2. Changes in ASHRAE From Standard 

90.1–2016 to Standard 90.1–2019 

III. Discussion of the Final Rule 

A. DOE’s Analysis of the Cost-Effectiveness 

of ASHRAE Standard 90.1 as Applied to 

New Federal Buildings 

B. Federal Agency Implementation of 

Changes to the Appendix G Performance 

Rating Method in ASHRAE Standard 

90.1–2016 and ASHRAE Standard 90.1– 

2019 

C. Definition of ‘‘New Federal Building’’ 

D. Programmatic Clarifications for 

Implementing ASHRAE Standard 90.1 

1. Whole Building Simulation and Model 

for Appendix G Performance Rating 

Method 

2. DOE and Agency Roles When Applying 

ASHRAE Standard 90.1 

IV. Methodology, Analytical Results, and 

Conclusion 

A. Cost-Effectiveness 

B. Monetization of Emissions Reduction 

Benefits 

1. Monetization of Greenhouse Gas 

Emissions 

a. Social Cost of Carbon 

b. Social Cost of Methane and Nitrous 

Oxide 

2. Monetization of Other Air Pollutants 

C. Conclusion 

V. Compliance Date 

VI. Reference Resources 

A. Resources for Commercial and MultiFamily High-Rise Residential Buildings 

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 


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20268 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

1For the purposes of discussion in this 

document, all references to ‘‘Federal buildings’’ 

subject to 10 CFR part 433 will include commercial 

and multi-family high-rise residential unless 

otherwise noted. 

2See DOE’s State building energy codes program 

analyses of the cost savings of the 2016 and 2019 

ASHRAE 90.1 Standards at www.energycodes.gov/ 

sites/default/files/2020-07/90.1-2016_National_

Cost-Effectiveness.pdf and www.energycodes.gov/ 

sites/default/files/2021-07/90.1-2019_National_

Cost-Effectiveness.pdf, respectively. 

3See section 433(b) of EISA 2007, Public Law 

110–140, 121 Stat. 1614 (Dec. 19, 2007). 

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 of the Final Rule 

Section 305 of ECPA, as amended, 

requires DOE to determine whether the 

energy efficiency standards for new 

Federal buildings 1 should be updated to 

reflect revisions to ASHRAE Standard 

90.1 based on the cost-effectiveness of 

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

Accordingly, DOE conducted a costeffectiveness analysis that found 

ASHRAE Standard 90.1–2019 to be costeffective for new Federal commercial 

and multi-family high-rise residential 

buildings. DOE’s assumptions and 

methodology for the cost-effectiveness 

of this rule are based on DOE’s State 

building energy codes program’s costeffectiveness analysis of ASHRAE 

Standard 90.1–2016 and ASHRAE 

Standard 90.1–2019.2 These 

assumptions and methodology also 

provide the basis for the environmental 

assessment (EA) for this rulemaking. 

Therefore, in this final rule, DOE 

updates the energy efficiency standards 

for new Federal buildings to ASHRAE 

Standard 90.1–2019 for buildings for 

which design for construction begins on 

or after one year after this rule is 

published in the Federal Register. (42 

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

To ensure consistency with ASHRAE 

Standard 90.1–2019, this final rule also 

limits the types of process and 

receptacle loads that may be excluded 

from the calculation of the 30 percent 

improvement beyond ASHRAE 

Standard 90.1 by revising 10 CFR 

433.101(b) to require Federal agencies to 

include unregulated energy use (i.e., 

process loads and receptacle loads not 

within the scope of ASHRAE Standard 

90.1) when calculating the 30 percent 

improvement beyond ASHRAE 

Standard 90.1, except for energyintensive process loads that are: (i) 

Driven by mission and operational 

requirements, not necessarily buildings, 

and (ii) not influenced by conventional 

building energy conservation measures. 

This final rule also amends the 

definition for ‘‘new Federal buildings’’ 

in 10 CFR 433.2 to include buildings 

leased by Federal agencies and 

privatized military housing in 

accordance with amendments to the 

underlying statutory definition of this 

term made by the Energy Independence 

and Security Act (EISA) 2007.3 This 

final rule also makes technical 

amendments to the definitions in 10 

CFR 433.2 for consistency with the 

materials incorporated by reference in 

10 CFR 433.3. 

Additionally, in the discussion of 

final rule, DOE clarifies and reiterates 

several programmatic principles related 

to agencies’ implementation of ASHRAE 

Standard 90.1. These clarifications do 

not represent changes to the regulations 

in 10 CFR part 433. However, DOE 

frequently receives repeat questions 

from Federal agencies expressing 

confusion over particular aspects of 

implementing ASHRAE Standard 90.1. 

Accordingly, DOE wishes to reduce 

agencies’ confusion by clarifying several 

important principles of implementing 

ASHRAE Standard 90.1 in the 

discussion of final rule. 

II. Introduction 

A. Energy Conservation and Production 

Act Requirements 

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)) Section 306(a) of 

ECPA further 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)) ECPA 

Section 306(b) 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)) 

Under section 305 of ECPA, the 

referenced voluntary consensus code for 

new Federal commercial buildings 

(including multi-family high rise 

residential buildings) is ASHRAE 

Standard 90.1. (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 433. Also pursuant 

to section 305 of ECPA, DOE must 

establish, by rule, Federal building 

energy efficiency performance standards 

for new Federal buildings that require 

such buildings 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)) These requirements 

do not extend to renovations or 

modifications to existing buildings. 

Additionally, 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 

International Energy Conservation Code 

(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. ASHRAE has updated 

Standard 90.1 from the version 

currently referenced in DOE’s 

regulations at 10 CFR part 433. In this 

rule, DOE revises the latest baseline 

Federal building standard for 10 CFR 

part 433 from ASHRAE Standard 90.1– 

2013 to ASHRAE Standard 90.1–2019. 

DOE notes that although ASHRAE 

published an update to ASHRAE 

Standard 90.1 in 2016, this rule updates 

10 CFR part 433 to ASHRAE Standard 

90.1–2019 directly, without requiring 

agencies to comply with ASHRAE 

Standard 90.1–2016. DOE notes 

however that because development of 

ASHRAE Standard 90.1 is incremental 

from version to version, ASHRAE 

Standard 90.1–2019 does include all 

content in ASHRAE Standard 90.1–2016 

that was not specifically removed or 

modified during the development of 

ASHRAE Standard 90.1–2019. 

B. ASHRAE Standard 90.1 

Standard 90.1 is recognized by the 

U.S. Congress as the national model 

energy code for commercial buildings 

under the ECPA. Standard 90.1 is 

developed under ANSI-approved 

consensus procedures and is under 

continuous maintenance by a Standing 

Standard Project Committee (commonly 

referenced as SSPC 90.1). Updates to 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20269 

4For the purposes of discussion in this 

document, all references to ‘‘Federal buildings’’ 

subject to 10 CFR part 433 will include commercial 

and multi-family high-rise residential unless 

otherwise noted. 

5 ‘‘Process load’’ means the load on a building 

resulting from energy consumed in support of a 

manufacturing, industrial, or commercial process. 

Process loads do not include energy consumed 

maintaining comfort and amenities for the 

occupants of the building (including space 

conditioning for human comfort). ‘‘Receptacle 

load,’’ also known as ‘‘plug load,’’ means the load 

on a building resulting from energy consumed by 

any equipment plugged into electrical outlets. (10 

CFR 433.2) 

6See determinations for the 2016 and 2019 

ASHRAE 90.1 Standards at www.regulations.gov/ 

document/EERE-2017-BT-DET-0046-0008 and 

www.regulations.gov/document/EERE-2020-BTDET-0017-0010. See analysis of energy savings for 

the 2016 and 2019 ASHRAE 90.1 Standards at 

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

02202018_Standard_90.1-2016_Determination_

TSD.pdf and www.energycodes.gov/sites/default/ 

files/2021-07/Standard_90.1-2019_Final_

Determination_TSD.pdf. 

Standard 90.1 are published every three 

years in order for the Standard to be 

included in model building energy 

codes. 

Standard 90.1 includes several paths 

for compliance in order to provide 

flexibility to users of the Standard. The 

prescriptive path, which is widely 

considered the most traditional, 

establishes criteria for energy-related 

characteristics of individual building 

components such as minimum 

insulation levels, maximum lighting 

power, and controls for lighting and 

heating, ventilation, air conditioning, 

and refrigeration (HVAC&R) systems. 

Some of those requirements are 

considered ‘‘mandatory,’’ meaning that 

they must be met even when one of the 

other optional paths are utilized (e.g., 

performance path). 

In addition to the prescriptive path, 

Standard 90.1 includes two optional 

whole building performance paths. The 

first, known as the Energy Cost Budget 

(ECB) method, provides flexibility in 

allowing a designer to ‘‘trade-off’’ 

compliance among various requirements 

of Standard 90.1. This effectively allows 

a designer to not meet a given 

prescriptive requirement if the impact 

on energy cost is offset by exceeding 

other prescriptive requirements, as 

demonstrated through established 

energy modeling protocols. A building 

is deemed in compliance when the 

annual energy cost of the proposed 

design is no greater than the annual 

energy cost of the reference building 

design (baseline). Additionally, 

Standard 90.1 includes a second 

performance approach, the Performance 

Rating Method in Appendix G of the 

Standard. Traditionally, Appendix G 

has been used to rate the performance 

of buildings that exceed the 

requirements of Standard 90.1 for 

‘‘beyond code’’ programs, including the 

Leadership in Energy and 

Environmental Design (LEED) Rating 

System, Green Globes, ASHRAE 

Standard 189.1, the International Green 

Construction Code (IgCC), the National 

Green Building Standard (NGBS), and 

other above-code programs. 

C. Regulatory Requirements of 10 CFR 

Part 433 

The energy efficiency standards for 

the design and construction of new 

Federal commercial and multi-family 

high rise buildings required by section 

305 of ECPA were established by DOE 

under 10 CFR part 433.4 As required by 

section 305 of ECPA, the standards in 10 

CFR part 433 require Federal buildings 

be designed to achieve energy 

consumption levels that are at least 30 

percent below the levels set by the most 

recently adopted version of ASHRAE 

Standard 90.1. When it is not LCC 

effective to design new Federal 

buildings to exceed ASHRAE Standard 

90.1 performance levels by 30 percent, 

new Federal buildings must be designed 

to exceed the ASHRAE Standard 90.1 

performance levels up to the percentage 

that is LCC effective. (10 CFR 

433.100(c)). Furthermore, new Federal 

buildings must, at minimum, be 

designed to achieve the baseline 

standards established in ASHRAE 

Standard 90.1. (10 CFR 433.100(a)(1)– 

(4), (c)). 

To determine if achieving energy 

consumption at least 30 percent lower 

than the levels of ASHRAE Standard 

90.1 is LCC effective, Federal agencies 

must use the life-cycle-costeffectiveness procedures set out in 

subpart A of 10 CFR part 436. (10 CFR 

433.8) A Federal agency may choose to 

use one of four methods to determine 

LCC effectiveness: Lower LCC (10 CFR 

436.19), positive net savings (10 CFR 

436.20), savings-to-investment ratio 

estimated to be greater than one (10 CFR 

436.21), and an adjusted internal rate of 

return estimated to be greater than the 

discount rate as listed in OMB Circular 

Number A–94 ‘‘Guidelines and Discount 

Rates for Benefit-Cost Analysis of 

Federal Programs’’ (10 CFR 436.22). 

To determine if a proposed building’s 

energy consumption levels are at least 

30 percent better than ASHRAE 

Standard 90.1, Federal agencies must 

use the Performance Rating Method 

found in Appendix G of ASHRAE 

Standard 90.1, subject to the DOEspecific formula found in 10 CFR 

433.101. See 10 CFR 433.101(a)(1)–(4). 

This requires the use of a whole 

building simulation tool and model for 

every new Federal building design. 

Similarly, if it is LCC effective for a 

proposed building’s energy 

consumption levels to be at a percentage 

better than ASHRAE Standard 90.1, but 

less than 30 percent, Federal agencies 

must use the Performance Rating 

Method in Appendix G of ASHRAE 

Standard 90.1 to determine this 

percentage. However, Federal agencies 

may use the prescriptive or ECB 

methods in lieu of the Performance 

Rating Method when determining 

whether a proposed building’s energy 

consumption levels comply with, or 

meet, the energy consumption levels of 

ASHRAE Standard 90.1. 

Currently, for the purposes of 

calculating the 30 percent savings 

requirements in 10 CFR 433.100, 

Federal agencies must include energy 

consumption levels associated with the 

building envelope and energy 

consuming systems normally specified 

as part of the building design by 

ASHRAE Standard 90.1, such as space 

heating, space cooling, ventilation, 

service water heating (SWH), and 

lighting, but must not include receptacle 

and process loads not within the scope 

of ASHRAE Standard 90.1, such as 

specialized medical or research 

equipment and equipment used in 

manufacturing processes.5 (10 CFR 

433.101(b)) However, due to a change 

made by ASHRAE in Standard 90.1– 

2016, and retained in ASHRAE 

Standard 90.1–2019, unregulated 

process and receptacle loads must be 

accounted for in the whole building 

analysis to determine whether a Federal 

building design complies with, or 

meets, ASHRAE Standard 90.1–2019, 

and in the whole building simulation 

used to establish the baseline for 

applying the Appendix G Performance 

Rating Method. See section III.B for a 

more detailed discussion. 

D. Synopsis of Changes to ASHRAE 

Standard 90.1 Between ASHRAE 

Standard 90.1–2013 and ASHRAE 

Standard 90.1–2019 

Under its building energy codes 

program, DOE evaluated ASHRAE 

Standard 90.1–2016 and 90.1–2019 and 

determined that each version would 

improve energy efficiency in 

commercial buildings subject to the 

code relative to the previous version of 

the Standard. (See 83 FR 8463 and 86 

FR 40543) The summaries of the 

changes between each version of the 

Standard in the following sections are 

taken directly from DOE’s 

determinations and supporting analyses 

for ASHRAE Standard 90.1–2016 and 

ASHRAE Standard 90.1–2019.6 Section 


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20270 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

II.D.1 describes the changes between 

ASHRAE Standard 90.1–2013 and 

ASHRAE Standard 90.1–2016, and 

section II.D.2 describes the changes 

between ASHRAE Standard 90.1–2016 

and ASHRAE Standard 90.1–2019. 

1. Changes in ASHRAE From Standard 

90.1–2013 to Standard 90.1–2016 

ASHRAE publishes changes to 

Standard 90.1 as individual addenda to 

the preceding Standard, and then 

bundles them together to form the next 

published edition. In creating the 2016 

edition, ASHRAE published 121 

addenda in total (listed in Appendix H 

of Standard 90.1–2016). DOE 

characterized the individual addenda 

into four categories: 

(1) Addenda that are clarifications, 

administrative, or update references to other 

documents; 

(2) Addenda that modify prescriptive and 

mandatory design and construction 

requirements for the envelope, HVAC, SWH, 

power, lighting, and other equipment 

sections of the standard; 

(3) Addenda that modify the performance 

path options for compliance (the energy cost 

budget, building envelope trade-off option, 

and performance rating method sections of 

Standard 90.1); or 

(4) Addenda that modify normative 

references. 

DOE analyzed these addenda in 

preliminary and final energy savings 

analyses in making its determination 

that changes in ASHRAE Standard 90.1– 

2016 would lead to improved overall 

energy efficiency in buildings subject to 

the code compared to the 2013 edition 

of the Standard. (See 83 FR 8463) A 

more detailed discussion of the 

individual addenda may be found in 

DOE’s energy savings analysis technical 

support document (TSD) for the final 

determination, which may be accessed 

at www.energycodes.gov/ 

determinations. 

For the purposes of this final rule, the 

most significant changes in ASHRAE 

Standard 90.1–2016 and beyond are to 

the Appendix G Performance Rating 

Method. The changes include: moving 

to a fixed baseline for calculating 

baseline building costs in the 

Performance Rating Method, 

adjustments to the associated equation 

for demonstrating compliance with the 

Performance Rating Method, and the 

application of a second equation that 

includes selecting building type and 

climate zone from a new table included 

in the revision. These changes are 

discussed in more detail in this section. 

However, as before, the calculations in 

the Appendix G Performance Rating 

Method are expressed in terms of energy 

costs. 

Another significant change is that the 

new Appendix G Performance Rating 

Method may now be used to 

demonstrate compliance with ASHRAE 

Standard 90.1. In previous versions of 

the Standard, the Appendix G 

Performance Rating Method could only 

be used to make ‘‘beyond code’’ 

determinations of a proposed building’s 

energy efficiency improvement beyond 

ASHRAE Standard 90.1. To demonstrate 

compliance, users were required to use 

either the prescriptive path or the ECB 

model to determine compliance. With 

the changes to the Appendix G 

Performance Rating Method formula, 

users may now use the Performance 

Rating Method to determine compliance 

with ASHRAE Standard 90.1. 

a. Fixed Baseline 

In Standard 90.1–2016, Appendix G 

was redesigned to have a consistent 

baseline across future versions for 

purposes of calculating baseline 

building energy costs, as opposed to 

having a baseline based on the 

prescriptive requirements of each new 

Standard. The new baseline for the 

Appendix G Performance Rating 

Method is now fixed at a level of 

performance approximately equal to the 

requirements in ASHRAE Standard 

90.1–2004. That baseline is then used in 

a new formula found in Section 4.2.1.1 

of ASHRAE Standard 90.1–2016 to set a 

compliance baseline for buildings 

designed under ASHRAE Standard 

90.1–2016. The formula uses factors for 

different building types and climate 

zones, the building performance factors 

(BPFs) which are established in 

ASHRAE Standard 90.1–2016, and will 

be updated in each subsequent version. 

The BPFs are based upon the percent 

improvement in energy cost savings that 

is required by each successive ASHRAE 

Standard 90.1 compared to the fixed 

baseline. The resulting target represents 

the increase in energy cost savings 

beyond the fixed baseline that is 

required in each successive ASHRAE 

Standard 90.1 for each building type 

and climate zone. 

The intent of these changes is to 

encourage the development of software 

tools that implement the Appendix G 

Performance Rating Method by 

providing a consistent baseline for 

Standard 90.1–2016 and future versions. 

This would allow software developers 

to more easily update programs to 

account for subsequent versions of the 

Standard by simply updating the BPFs 

used in the subsequent Standard. These 

efforts could have significant value to 

Federal agencies because the software 

tools envisioned would perform both 

the baseline and proposed building 

performance calculations and keep track 

of the relationships between the 

baseline building performance and 

proposed building performance, as 

noted in Table G3.1 of the Appendix G 

Performance Rating Method in ASHRAE 

Standard 90.1–2016. While these tools 

do not currently exist, it is expected that 

adhering to a consistent baseline will 

encourage software development. 

b. Revisions and Additions to the 

Formula for Demonstrating Compliance 

With the Appendix G Performance 

Rating Method 

To accommodate the new baseline, 

and because ASHRAE Standard 90.1 

prescriptive requirements are now 

significantly more stringent than that 

baseline, ASHRAE revised the formula 

for demonstrating compliance with, and 

improvement beyond, the Appendix G 

Performance Rating Method in Standard 

90.1–2016. The new formula requires 

the user to determine a metric first 

established in ASHRAE Standard 90.1– 

2016, the Performance Cost Index (PCI), 

which is calculated as follows: 

Performance Cost Index = proposed 

building performance/baseline 

building performance 

To determine compliance with, or 

improvement beyond, ASHRAE 

Standard 90.1, the user must then 

compare the PCI with a PCI Target 

(PCIt). The PCIt is the energy cost value 

that a proposed building must meet in 

order to comply with ASHRAE Standard 

90.1 and, as noted above, it represents 

the increase in energy cost savings 

beyond the fixed baseline that is 

required in new versions of ASHRAE 

Standard 90.1 for that specific building 

type and climate zone. Accordingly, 

where PCI ≤ PCIt the proposed building 

design complies with ASHRAE 

Standard 90.1. 

To calculate PCIt, users must use the 

formula in Section 4.2.1.1, first 

established in ASHRAE Standard 90.1– 

2016 and repeated in Standard 90.1– 

2019, which is quoted below: 

‘‘When using Appendix G, the 

Performance Cost Index (PCI) shall be 

less than or equal to the Performance 

Cost Index Target (PCIt) when calculated 

in accordance with the following: 

PCIt = [BBUEC + (BPF × BBREC)]/BBP 

Where: 

PCI = Performance Cost Index calculated in 

accordance with section G1.2. 

BBUEC = Baseline Building Unregulated 

Energy Cost, the portion of the annual 

energy cost of a baseline building design 

that is due to unregulated energy use. 

BBREC = Baseline Building Regulated Energy 

Cost, the portion of the annual energy 

cost of a baseline building design that is 

due to regulated energy use. 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20271 

7Table 4.2.1.1 of Standard 90.1–2019 is 

copyrighted by ASHRAE and is not included in this 

rule. However, a read-only copy of ANSI/ASHRAE/ 

IES Standard 90.1–2019 may be found on the 

ASHRAE website at www.ashrae.org/technicalresources/standards-and-guidelines by scrolling 

down to ‘‘Preview ASHRAE Standards and 

Guidelines’’ and selecting ‘‘Standard 90.1–2019 (I– 

P).’’ Table 4.2.1.1 is found in Section 4 on page 47. 

8ASHRAE Standard 90.1 uses the term 

‘‘automatic receptacle control’’ without a specific 

definition, indicating that the common usage of this 

term should be used. However, ASHRAE Standard 

90.1 does use the term ‘‘automatic control device’’ 

in conjunction with the term ‘‘automatic receptacle 

control.’’ The definition of ‘‘automatic control 

device’’ in ASHRAE Standard 90.1 is ‘‘a device 

capable of automatically turning loads off and on 

without manual intervention.’’ This definition 

implies that an ‘‘automatic receptacle control’’ is a 

device capable of automatically turning loads 

plugged into a receptacle off and on without 

manual intervention. 

BPF = Building Performance Factor from 

Table 4.2.1.1. For building area types not 

listed in Table 4.2.1.1, use ‘‘all others.’’ 

Where a building has multiple building 

area types, the required BPF shall be 

equal to the area-weighted average of the 

building area types. 

BBP = Baseline Building Performance.’’ 

This formula is used in conjunction 

with Table 4.2.1.1, which provides BPFs 

for 9 building area types: Multifamily, 

Healthcare/Hospital, Hotel/Motel, 

Office, Restaurant, Retail, School, 

Warehouse, and All Others. BPFs are 

also provided for 17 climate zones: 0A 

and 1A, 0B and 1B, 2A, 2B, 3A, 3B, 3C, 

4A, 4B, 4C, 5A, 5B, 5C, 6A, 6B, 7, and 

8. Table 4.2.1.1 may be viewed in the 

online read-only version of ASHRAE 

Standard 90.1–2019.7

Definitions of Regulated and 

Unregulated Energy Use 

As noted previously, there are two 

key terms used in the formula in Section 

4.2.1.1 of ASHRAE Standard 90.1: 

‘‘regulated energy use’’ and 

‘‘unregulated energy use.’’ ASHRAE 

defines ‘‘regulated energy use’’ as 

‘‘energy used by building systems and 

components with requirements 

prescribed in sections 5 through 10. 

This includes energy used by HVAC, 

lighting, SWH, motors, transformers, 

vertical transportation, refrigeration 

equipment, computer-room cooling 

equipment, and other building systems, 

components, and processes with 

requirements in sections 5 through 10.’’ 

ASHRAE defines ‘‘unregulated energy 

use’’ as ‘‘energy used by building 

systems and components that is not 

regulated energy use (see regulated 

energy use).’’ For purposes of clarity, 

DOE notes that the definition of 

‘‘regulated energy use’’ should include 

SWH used for pools, both interior 

lighting and exterior lighting, and 

service water pressure booster systems. 

DOE also notes that in ASHRAE 

Standard 90.1–2016, ASHRAE 

considered plug loads such as 

computers, printers, copiers, and other 

electronic devices to be ‘‘unregulated 

energy use’’ for purposes of ASHRAE 

Standard 90.1. While automatic 

receptacle control 8 for plug loads is 

required by Section 8.4.2 of ASHRAE 

Standard 90.1, the actual plug loads 

themselves are not regulated. DOE also 

notes that cooking equipment other than 

refrigeration equipment should be 

considered ‘‘unregulated energy use’’ as 

well. DOE notes that both plug loads 

and cooking equipment are covered by 

Federal energy efficient product 

procurement requirements in 10 CFR 

part 436. 

2. Changes in ASHRAE From Standard 

90.1–2016 to Standard 90.1–2019 

In creating Standard 90.1–2019, 

ASHRAE published 88 addenda in total, 

of which: 

• 29 are expected to decrease energy 

use (i.e., increased energy savings); 

• none are expected to increase 

energy use (i.e., decreased energy 

savings), and; 

• 59 are expected to have no direct 

impact on energy savings (such as 

administrative or clarifications or 

changes to alternative compliance 

paths). 

DOE analyzed these addenda in 

preliminary and final energy savings 

analyses in making its determination 

that changes in ASHRAE Standard 90.1– 

2019 will lead to improved overall 

energy efficiency in buildings subject to 

the code compared to the 2016 edition 

of the Standard. (See 86 FR 20674 (April 

21, 2021) and 86 FR 40543 (July 28, 

2021)) A more detailed discussion of the 

individual addenda may be found in 

DOE’s energy savings analysis TSD for 

the final determination, which may be 

accessed at www.energycodes.gov/ 

determinations. 

The 29 changes considered that are 

expected to decrease energy use are: 

(1) Modified exceptions to exhaust air 

energy recovery requirements. 

(2) Changes the term ‘‘ventilation air’’ to 

‘‘outdoor air’’ in multiple locations. Adds an 

exception to allow systems intended to 

operate continuously not to install motorized 

outdoor air dampers. Changes return air 

dampers to require low leakage ratings. 

(3) Provides a definition of ‘‘occupiedstandby mode’’ and adds new ventilation air 

requirements for zones served in occupiedstandby mode. 

(4) Clarifies that exhaust air energy 

recovery ventilators (ERVs) should be sized 

to meet both heating and cooling design 

conditions unless one mode is specifically 

excluded by existing exceptions. 

(5) Revises the exception to demand 

control ventilation (DCV) requirements to 

clarify that the exception only applies to 

systems with ERV required to meet section 

6.5.6.1. 

(6) Revises the definition of ‘‘networked 

guest room control system’’ and aligns HVAC 

and lighting time-out periods for guest 

rooms. 

(7) Expands the exterior lighting power 

density (LPD) application table to cover 

additional exterior spaces that are not in the 

exterior LPD table. 

(8) Adds heat recovery for the space 

conditioning requirement targeted 

specifically at in-patient hospitals. 

(9) Restructures commissioning and 

functional testing requirements in all 

sections of Standard 90.1 to require 

verification or testing for smaller and simpler 

buildings and commissioning for larger and 

more complex buildings. 

(10) Adds indoor pool dehumidifier energy 

recovery requirement. 

(11) Implements Federal clean water pump 

requirements. 

(12) Replaces Fan Energy Grade metric 

with Fan Energy Index metric. 

(13) Revises supply air temperature reset 

controls. 

(14) Eliminates the requirement that zones 

with direct digital control (DDC) have air 

flow rates that are no more than 20 percent 

of the zone design peak flow rate. 

(15) Revises the prescriptive fenestration 

U-factor and solar heat gain coefficient 

(SHGC) requirements and makes them 

material neutral. 

(16) Provides separate requirements for 

non-transient dwelling unit exhaust air 

energy recovery. 

(17) Changes the interior LPD requirements 

for many space types. 

(18) Adds a new chiller table for heat 

pump and heat recovery chillers. 

(19) Revises the computer room air 

conditioner (CRAC) requirements to clarify 

these are for floor mounted units and adds 

a new table for ceiling mounted units. 

(20) Adds a definition of Standby Power 

Mode Consumption. Increases the furnace 

efficiency requirements. 

(21) Adds a new Table F–5 to specify DOEcovered residential water boiler efficiency 

requirements and notes that requirements in 

Table 6.8.1–6 apply only to products used 

outside the United States. Adds standby 

mode and improved efficiency as of January 

15, 2021. 

(22) Adds dry cooler efficiency 

requirements and slightly increases 

efficiency requirements for evaporative 

condensers. 

(23) Combines the commercial refrigerator 

and freezer table with the refrigerated 

casework table into a single table. Increases 

efficiency requirements. 

(24) Revises LPDs using the Building Area 

Method. 

(25) Makes a similar change to the variable 

air volume (VAV) box minimums as 

Addendum au to 90.1–2016, but in exception 

1 to section 6.5.2.1 where the same 20 

percent requirement still existed. 

(26) Cleans up the outdated language 

regarding walk-in cooler and walk-in freezer 


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20272 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

9www.energycodes.gov/sites/default/files/2021- 

07/20210407_Standard_90.1-2019_Determination_

TSD.pdf. 

requirements and makes the requirements 

consistent with current Federal regulations. 

(27) Adds new normative references and 

updates existing ones with new effective 

dates, including several addenda to ASHRAE 

Standard 62.1–2016. 

(28) Updates the lighting control 

requirements for parking garages in section 

9.4.1.2. 

(29) Changes the daylight responsive 

requirements from continuous dimming or 

stepped control to continuous dimming 

required for all spaces and adds a definition 

of continuous dimming. 

The remaining 59 changes were 

considered administrative in nature or 

were determined to not be energy 

related. These changes are discussed in 

more detail in Appendix A of 

Preliminary Energy Savings Analysis: 

ANSI/ASHRAE/IES Standard 90.1– 

2019.9 One change that is considered 

administrative in DOE’s determination 

but is significant to this rulemaking is 

that ASHRAE updated the BPFs in 

Table 4.2.1.1 that are used in the 

Performance Rating Method in Standard 

90.1–2019. This change reflects the 

increased performance of buildings 

designed to Standard 90.1–2019. The 

changes made to the Performance Rating 

Method that are discussed previously in 

section II.D.1 were carried over from 

ASHRAE Standard 90.1–2016 and 

included in ASHRAE Standard 90.1– 

2019. 

III. Discussion of the Final Rule 

DOE is issuing this action as a final 

rule. As indicated previously, DOE must 

determine whether the energy efficiency 

standards for new Federal buildings 

should be updated to reflect revisions to 

ASHRAE Standard 90.1 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 2019 revisions to ASHRAE Standard 

90.1 based on the cost-effectiveness of 

the revisions. This final rule amends 10 

CFR part 433 to update the referenced 

baseline Federal energy efficiency 

performance standards and provides a 

formula for Federal agencies to use 

when implementing the Appendix G 

Performance Rating Method based on 

the changes in ASHRAE Standard 90.1– 

2016, detailed in section II.D.1, that 

were carried over into ASHRAE 

Standard 90.1–2019. These amendments 

are described in sections II.D.1. and 

II.D.2. of this document. Additionally, 

DOE clarifies and reiterates several 

programmatic principles for Federal 

agencies implementing ASHRAE 

Standard 90.1 based on frequently asked 

questions received by DOE. 

DOE also notes that there are a 

number of energy management 

requirements for Federal buildings 

found in statutory provisions, 

regulations, Executive Orders, and 

associated guidance, including, but not 

limited to the National Energy 

Conservation Policy Act, as amended 

(42 U.S.C. 8253–8258); the Energy 

Policy Act (EPAct) of 2005 (42 U.S.C. 

15852); 10 CFR parts 433 and 435; and 

Executive Order 13834 (83 FR 23771 

(May 22, 2018)). This final rule supports 

and does not supplant other legal 

requirements governing energy 

consumption in new Federal buildings. 

For example, by designing buildings to 

meet the ASHRAE Standard 90.1–2019 

baseline, Federal agencies also help 

achieve the energy intensity reductions 

mandated under 42 U.S.C. 8253(a). 

A. DOE’s Analysis of the CostEffectiveness of ASHRAE Standard 90.1 

as Applied to New Federal Buildings 

DOE has determined that the energy 

efficiency standards for new Federal 

buildings should be updated to reflect 

the 2019 revisions to ASHRAE Standard 

90.1 because these revisions are costeffective for the Federal government. 

DOE’s determination that the revisions 

to ASHRAE Standard 90.1 are cost 

effective for new Federal buildings is 

based on several forms of analysis. 

DOE is required by ECPA section 

304(b) to determine whether revisions to 

ASHRAE Standard 90.1 would improve 

energy efficiency in commercial 

buildings and must publish notice of its 

determination in the Federal Register. 

(42 U.S.C. 6833(b)(2)(A)). Although 

DOE’s review of ASHRAE Standard 90.1 

is required for the activities of DOE’s 

State building energy codes program, 

DOE also uses the analysis as part of its 

review for purposes of the baseline 

standard update for new Federal 

buildings. Accordingly, DOE first 

compared ASHRAE Standard 90.1–2016 

to the 2013 version of the standard and 

found that the revisions in the 2016 

version achieved greater energy 

efficiency. (See 82 FR 34513 (July 25, 

2017)). This determination was subject 

to notice and comment. (See 83 FR 8463 

(Feb. 27, 2018)). In that determination, 

DOE found that the 2016 version of 

Standard 90.1 would have energy cost, 

source energy, and site energy savings of 

8.3, 7.9, and 6.8 percent, respectively, 

compared to the 2013 version of 

Standard 90.1. Similarly, DOE 

compared ASHRAE Standard 90.1–2019 

to the 2016 version of the standard and 

found that the revisions in the 2019 

version would achieve greater energy 

efficiency. (See 86 FR 20674 (April 21, 

2021)) This determination was subject 

to notice and comment. (See 86 FR 

40543; July 28, 2021). In that 

determination, DOE found that the 2019 

version of Standard 90.1 would have 

energy cost, source energy, and site 

energy savings of 4.3, 4.3, and 4.7 

percent, respectively, compared to the 

2016 version of Standard 90.1. DOE also 

conducted an independent, 

supplemental analysis of the updated 

ASHRAE Standard 90.1 as applied to 

the Federal sector, and found that the 

2019 version of Standard 90.1 would 

have energy cost, source energy, and site 

energy savings of 11.3, 11.3, and 11.2 

percent, respectively, compared to the 

2013 version of Standard 90.1. 

Second, DOE conducted an analysis 

of the cost-effectiveness of the updated 

ASHRAE Standard 90.1 as part of DOE’s 

required activities for its building 

energy codes program and found the 

updated version to be cost-effective. 

DOE determines the cost effectiveness of 

revisions to ASHRAE Standard 90.1 as 

part of DOE’s participation in the code 

development process. Section 307(b) of 

ECPA requires DOE to participate in the 

ASHRAE code development process and 

to assist in determining the costeffectiveness 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)). 

Finally, DOE conducted an 

independent, supplemental analysis of 

ASHRAE Standard 90.1–2019 as applied 

to the Federal sector (baseline ASHRAE 

Standard 90.1–2013), and found that the 

energy efficiency gains resulted in 

$161.9 million annual life-cycle-cost net 

savings overall for an assumed 19.54 

million square feet of annual new 

Federal construction, with a cumulative 

net present value (NPV) of total benefits 

of $1.66 billion (at a 7-percent discount 

rate) and $3.48 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, along with monetized 

estimates of climate and health 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 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20273 

expected to result from 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 

injunction and present monetized 

benefits where appropriate and 

permissible under law. These results are 

discussed in greater detail in section IV 

of this document. 

DOE’s assumptions and methodology 

for the supplemental review costeffectiveness of this rule are based on 

the cost-effectiveness analysis of 

ASHRAE Standard 90.1–2016 and 

ASHRAE Standard 90.1–2019 

conducted by DOE’s State building 

energy codes program. These 

assumptions and methodology also 

provide the basis for the EA for this 

rulemaking. In this supplemental 

review, DOE recognized differences in 

Federal sector building types and 

attempted to address these differences 

by drawing functional equivalencies 

among building types that were 

analyzed in the cost-effectiveness 

analysis described above. DOE also 

calculated the weighted average 

incremental costs for the 14 Federal 

building types that most closely 

matched the prototypes analyzed in 

DOE’s cost-effectiveness analysis of 

Standard 90.1–2019. These Federal 

building types comprise 79.3 percent of 

estimated Federal construction. DOE 

assumes that all other Federal building 

types are represented by the average of 

the Federal buildings that were mapped 

to DOE’s cost-effectiveness analysis 

building types. The results of this 

supplemental review are discussed in 

detail in section IV of this document. 

Accordingly, based on these analyses, 

DOE has determined that the energy 

efficiency standards for new Federal 

buildings should be updated to reflect 

the 2019 revisions to ASHRAE Standard 

90.1 based on the cost-effectiveness of 

the revisions. 

B. Federal Agency Implementation of 

Changes to the Appendix G 

Performance Rating Method in ASHRAE 

Standard 90.1–2016 and ASHRAE 

Standard 90.1–2019 

As previously discussed, ASHRAE 

Standard 90.1–2016 was the first 

version of Standard 90.1 in which the 

Appendix G Performance Rating 

Method may be used to demonstrate 

compliance with Standard 90.1. In 

previous versions, Appendix G was 

limited to demonstrating the percentage 

improvement above Standard 90.1. 

Federal agencies can now use Appendix 

G for both compliance and 

demonstrating the percentage 

improvement better than ASHRAE 

Standard 90.1–2019. Federal agencies 

may also choose to use one of the other 

compliance methods (the prescriptive 

path or the ECB method) to demonstrate 

compliance with Standard 90.1–2019. 

However, Federal agencies can only use 

the Appendix G Performance Rating 

Method for calculating the 30 percent 

improvement beyond ASHRAE 

Standard 90.1 as required in 10 CFR 

433.100 and 433.101. 

DOE notes that not all Federal 

building types are explicitly covered by 

the BPFs listed in Table 4.2.1.1 of 

ASHRAE Standard 90.1–2019. DOE 

plans to work with Federal agencies to 

define the most appropriate building 

area type for various types of buildings 

constructed in the Federal sector, such 

as courthouses, barracks, and industrial 

type facilities. 

To calculate the percent improvement 

beyond ASHRAE Standard 90.1–2019, 

Federal agencies must use the formula 

in new 10 CFR 433.101(a)(5). The 

formula is as follows: 

Percent improvement beyond code = 

100 × ((PCIt—PCI)/PCIt) 

Where 

PCI = Performance Cost Index, as defined in 

Appendix G of ASHRAE Standard 90.1– 

2019, and 

PCIt = Performance Cost Index Target, as 

calculated in Section 4.2.1.1 of ASHRAE 

Standard 90.1–2019 

This formula differs from previous 

formulas that DOE has required in 10 

CFR 433.101 due to the new ASHRAE 

requirement to calculate PCIt to 

determine whether a proposed building 

design exceeds the energy costs savings 

of ASHRAE Standard 90.1–2019. 

Importantly, section 4.2.1.1 requires 

that the Baseline Building Unregulated 

Energy Consumption (BBUEC) be 

included in the calculation of a 

building’s PCIt. DOE notes that Federal 

agencies have always been required to 

include energy consumption that has 

generally been ‘‘unregulated’’ by 

ASHRAE Standard 90.1 (i.e., certain 

process loads and receptacle loads) for 

purposes of determining compliance 

with ASHRAE Standard 90.1. 

Additionally, Federal agencies are 

required to include such unregulated 

energy use to conduct the required 

whole building simulation to establish 

the baseline for applying the Appendix 

G Performance Rating Method. 

However, Federal agencies are 

currently required to exclude 

unregulated energy use not within the 

scope of ASHRAE Standard 90.1 when 

determining whether a design has met 

the required 30 percent improvement 

below ASHRAE Standard 90.1. (10 CFR 

433.101(b)) In the initial promulgation 

of the energy efficiency standards for 

Federal commercial and multi-family 

high rises, DOE stated that such an 

exclusion for process loads was 

warranted because process loads in 

government facilities typically involve 

specialized equipment for which 

improvements in energy efficiency may 

affect the functionality of the equipment 

or where improvements are not 

available at all. Additionally, some 

Federal buildings use most of their 

energy serving process loads, and 

application of the energy savings 

requirement to these buildings would 

likely place an undue burden on the rest 

of the building if the 30 percent savings 

is to be achieved. (See 72 FR 72565, 

72567–72568 (Dec. 21, 2007)). With 

respect to receptacle loads, DOE stated 

that it is often not possible to identify 

all receptacle loads when a building is 

designed or constructed as the 

occupants will to some degree establish 

what is plugged in, and that as 

equipment is replaced over time the 

initial savings from receptacle loads 

may diminish. (See 72 FR 72567–72568) 

Moreover, DOE stated that the energy 

efficiency of many receptacle loads was 

addressed in section 104 of EPAct 2005 

(Pub. L. 109–58), which requires Federal 

agencies to purchase energy efficient 

appliances and equipment. (42 U.S.C 

8259b). 

However, due to ASHRAE’s explicit 

inclusion of unregulated energy use in 

the PCIt equation, in this final rule, DOE 

limits the types of unregulated loads 

that may be excluded from the 

calculation of the 30 percent 

improvement beyond ASHRAE 

Standard 90.1. This final rule revises 10 

CFR 433.101(b) to require Federal 

agencies to include unregulated energy 

use (i.e., process loads and receptacle 

loads not within the scope of ASHRAE 

Standard 90.1) in agencies’ 


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20274 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

10Section 543 of NECPA requires agencies to 

meet specific energy reduction targets, report 

progress towards such targets, perform periodic 

energy consumption evaluations, and implement 

periodic energy conservation measures where 

feasible. (42 U.S.C. 8253). Section 543(c)(3) of 

NECPA requires DOE to issue guidelines that 

establish criteria for exclusions to these 

performance and reporting requirements. These 

exclusions are outlined in ‘‘Guidelines Establishing 

Criteria for Excluding Buildings from the Energy 

Performance Requirements of Section 543 of the 

National Energy Conservation Policy Act as 

Amended by the Energy Policy Act of 2005,’’ (Jan. 

27, 2006), available at: www.energy.gov/eere/femp/ 

downloads/guidelines-establishing-criteriaexcluding-buildings-energy-performance. 

determination of PCIt when calculating 

the 30 percent improvement beyond 

ASHRAE Standard 90.1, except for 

energy-intensive process loads that are 

(i) driven by mission and operational 

requirements, not necessarily buildings, 

and (ii) not influenced by conventional 

building energy conservation measures. 

Examples would include training 

simulators, health-care equipment, 

facilities which generate and/or transmit 

electricity or steam, waterway shipping 

locks, and transmitters and other types 

of electronic installations. This 

exception aligns with DOE’s exception 

for certain assumed exclusions of 

structures and processes under the 

Federal energy performance and 

reporting requirements of section 543 of 

the National Energy Conservation Policy 

Act (NECPA), as amended by EPAct.10

(See 42 U.S.C. 8253(a)) This final rule 

also removes paragraph (b) from 10 CFR 

433.100, as this paragraph is duplicative 

of the current paragraph (b) in 10 CFR 

433.101, and is not reflective of the 

changes in this final rule. Moreover, the 

content in this paragraph, how to 

incorporate process and receptacle loads 

in the calculation of the 30 percent 

improvement, is best placed in 10 CFR 

433.101, which prescribes the equations 

for the 30 percent improvement 

calculation. 

DOE acknowledges that the inclusion 

of unregulated loads into the 30 percent 

or more determination is a change from 

prior practice. However, the changes in 

this final rule ensure consistency 

between ASHRAE Standard 90.1–2019 

and the application of the Standard to 

Federal buildings, as required by section 

305 of ECPA, while still providing 

agencies the flexibility to exclude 

unique mission-focused, energyintensive process loads from the 30 

percent improvement calculation so that 

the functionality of such loads is not 

jeopardized and an undue burden is not 

placed on the rest of the building if the 

30 percent savings is to be achieved. 

The inclusion of unregulated energy, 

particularly receptacle loads, into the 30 

percent improvement calculation may 

mean that fewer building designs will 

meet the 30 percent threshold, where 

such designs would otherwise meet that 

threshold if unregulated energy loads 

were excluded from the calculation. 

However, DOE believes that the 

inclusion of unregulated energy use into 

this calculation is more consistent with 

the text of section 305 of EPAct 2005, 

which requires that Federal buildings be 

designed to achieve energy savings of 30 

percent or more below ASHRAE 

Standard 90.1, without reference to or 

exception for process or receptacle 

loads. Moreover, DOE notes that such 

buildings consume the same amount of 

energy, regardless of whether 

unregulated energy is included in the 30 

percent or more calculation. 

Additionally, DOE reiterates that a 

building design is compliant with 10 

CFR 433.100 even if the design does not 

meet the 30 percent or more threshold, 

provided the design obtains the most 

energy savings below ASHRAE 

Standard 90.1 that is cost-effective, in 

accordance with 10 CFR 433.100(c) 

(now section 433.100(b)). 

C. Definition of ‘‘New Federal Building’’ 

The definition of ‘‘New Federal 

building’’ in 10 CFR part 433 has not 

previously been updated to match what 

is found in 42 U.S.C. 6832(6). EISA 2007 

(Pub. L. 110–140, 121 Stat. 1614 (Dec. 

19, 2007)) updated the definition of 

‘‘Federal building’’ to include privatized 

military family housing and leased 

buildings. Accordingly, in order to bring 

10 CFR part 433 into agreement with 42 

U.S.C. 6832(6), DOE is updating the 

definition of ‘‘New Federal building’’ to 

mean ’’ any new building (including a 

complete replacement of an existing 

building from the foundation up) to be 

constructed by, or for the use of, any 

Federal agency. Such term shall include 

new buildings (including a complete 

replacement of an existing building 

from the foundation up) built for the 

purpose of being leased by a Federal 

agency, and privatized military 

housing.’’ 

D. Programmatic Clarifications for 

Implementing ASHRAE Standard 90.1 

As noted previously, DOE is clarifying 

and reiterating several programmatic 

principles regarding implementation of 

ASHRAE Standard 90.1–2019 in the 

preamble of final rule. The clarifications 

and reiterations are not changes to the 

regulatory text. Instead, DOE is taking 

this opportunity to provide answers and 

clarifications for frequent questions that 

DOE receives from Federal agencies in 

order to reduce confusion over agencies’ 

implementation of ASHRAE Standard 

90.1. 

1. Whole Building Simulation and 

Model for Appendix G Performance 

Rating Method 

Based on frequent questions regarding 

the issue, DOE reiterates that the use of 

the ASHRAE Standard 90.1 Appendix G 

Performance Rating Method requires the 

consideration of the building envelope 

and the use of a whole-building 

simulation tool and simulation model 

for the chosen tool of the proposed 

building design. As noted previously, 

Federal agencies must use the 

Performance Rating Method when 

determining if their proposed buildings 

are 30 percent or better beyond 

ASHRAE Standard 90.1. Since all 

Federal agencies must determine if they 

can meet the 30 percent or more 

threshold, this means that all Federal 

agencies must use a whole building 

simulation tool and a building model for 

every new Federal building design. 

Additionally, where a Federal agency 

uses the Performance Rating Method to 

determine compliance with ASHRAE 

Standard 90.1–2019, the agency must 

use a whole building simulation tool 

and whole building model. 

2. DOE and Agency Roles When 

Applying ASHRAE Standard 90.1 

DOE has often received questions 

regarding enforcement of the energy 

efficiency standards for Federal 

commercial and multi-family high rise 

buildings, including for situations when 

agencies may seek exceptions to 

particular aspects of ASHRAE Standard 

90.1. Specifically, agencies have asked 

whether DOE is the ‘‘authority having 

jurisdiction’’ referenced in ASHRAE 

Standard 90.1, and whether DOE is the 

‘‘authority having jurisdiction’’ for 

purposes of granting exceptions to 

aspects of the Standard for Federal 

agencies. As with prior versions of 

ASHRAE Standard 90.1, Standard 90.1– 

2019 provides some flexibility to 

building designers based upon the type 

of code requirement at issue. Standard 

90.1 contains ‘‘prescriptive 

requirements,’’ which may have 

exceptions to them or may be ‘‘traded 

off’’ in the Performance Rating Method 

if designers are unable or choose not to 

meet a specific prescriptive 

requirement. Such an approach means 

that another building component would 

need to be improved beyond what was 

required prescriptively by the Standard 

for that component, or else the overall 

score of the building design under the 

Performance Rating Method will be 

lowered. Standard 90.1 also contains 

‘‘mandatory requirements,’’ which may 

not be traded off with other 

requirements. However, Standard 90.1 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20275 

11Federal Comprehensive Annual Energy 

Reporting Requirements www.energy.gov/eere/ 

femp/federal-facility-consolidated-annualreporting-requirements. 12See DOE’s analysis of the cost savings of the 

2016 and 2019 ASHRAE 90.1 Standards at 

www.energycodes.gov/sites/default/files/2020-07/ 

90.1-2016_National_Cost-Effectiveness.pdf and 

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

90.1-2019_National_Cost-Effectiveness.pdf, 

respectively. 

13The Environmental Assessment (EA) (DOE/EA– 

2165) is entitled, ‘‘Environmental Assessment for 

Final Rule, 10 CFR part 433, ‘Energy Efficiency 

Standards for New Federal Commercial and MultiFamily High-Rise Residential Buildings’ Baseline 

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

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

nepa/doeea-2165-energy-efficiency-standards-newfederal-commercial-and-multi-family-high-rise. 

14See www.realpropertyprofile.gov/FRPPMS/ 

FRPP_Login. 

15Briggs, R.S., R.G. Lucas, and Z.T. Taylor. 2003. 

‘‘Climate classification for building energy codes 

and standards: Part 1—Development Process.’’ 

ASHRAE Transactions 109(1): 109:121. American 

Society of Heating, Refrigerating and AirConditioning Engineers. Atlanta, Georgia. 

16 DOE’s prototype buildings are described at 

www.energycodes.gov/prototype-building-models. 

allows building designs to be excepted 

from meeting certain mandatory 

requirements in certain situations if 

allowed by the ‘‘authority having 

jurisdiction,’’ ‘‘building code official,’’ 

and/or ‘‘code official.’’ For example, the 

‘‘authority having jurisdiction’’ or ‘‘code 

official’’ is the person who authorizes 

the use of alternative materials, methods 

of construction, or design (see, e.g., 

section 4.1.3 of Standard 90.1–2019), 

and is also the person charged with 

determining if there is a conflict 

between the Standard and other laws or 

requirements and how to address such 

conflict (see section 4.1.5 of Standard 

90.1–2019). 

For the purposes of the energy 

efficiency standards for Federal 

buildings, DOE does not have authority 

to grant exceptions to the Standard for 

any Federal agency. The statute does not 

provide a specific enforcement authority 

beyond the statutory requirements, but 

section 548(a) of NEPCA (42 U.S.C. 

8258(a)) requires Federal agencies to 

submit to DOE an annual report that 

describes activities to meet the energy 

management requirements of section 

543 of NECPA (42 U.S.C. 8253). This 

submittal includes a list of all new 

Federal buildings owned, operated, or 

controlled by the Federal agency, for 

which designs were started since the 

beginning of FY 2007 (begun since 

October 1, 2006), and a statement 

specifying whether the Federal 

buildings are expected to meet or 

exceed the Federal building efficiency 

standards in 10 CFR part 433, as 

applicable. (See www.energy.gov/eere/ 

femp/downloads/annual-energymanagement-data-report). The DOE 

Annual Energy Management Data 

Report Reporting workbook and 

associated guidance can be found on the 

DOE Federal Energy Management 

Program (FEMP) website.11 Federal 

agencies themselves are responsible for 

implementing the energy efficiency 

standards for Federal buildings and 

meeting any applicable statutory and 

regulatory requirements. Accordingly, 

where the terms are used in ASHRAE 

Standard 90.1, Federal agencies are their 

own ‘‘authority having jurisdiction,’’ 

‘‘building official,’’ and/or ‘‘code 

official,’’ and may use their own best 

judgment in determining whether to 

exempt a proposed Federal building 

from aspects of the Standard or seek an 

alternative energy conservation measure 

to meet a particular aspect of the 

Standard where such exceptions or 

alternatives are permitted by the 

Standard. However, agencies must still 

comply with all relevant Federal energy 

efficiency statutes and regulations, 

including 10 CFR part 433. DOE notes 

that, as a general rule, any prescriptive 

requirement in ASHRAE Standard 90.1– 

2019 can be ‘‘traded off’’ in the 

Performance Rating Method if agencies 

are unable or choose not to meet a 

specific prescriptive requirement. Such 

an approach means that another 

building component would need to be 

improved beyond what was required 

prescriptively by the Standard for that 

component, or else the overall score of 

the building design under the 

Performance Rating Method will be 

lowered. With respect to mandatory 

requirements in the Standard, DOE 

notes that, as the ‘‘authority having 

jurisdiction,’’ ‘‘building official,’’ or 

‘‘code official,’’ agencies should only be 

making exceptions to mandatory 

requirements where the Standard allows 

for the ‘‘authority having jurisdiction,’’ 

‘‘building official,’’ and/or ‘‘code 

official’’ to make exceptions to such 

requirements. DOE welcomes Federal 

agencies’ questions and requests for 

assistance in implementing the energy 

efficiency standards for Federal 

buildings, and DOE will provide 

guidance and assistance upon request. 

IV. Methodology, Analytical Results, 

and Conclusion 

A. Cost-Effectiveness 

DOE’s assumptions and methodology 

for the cost-effectiveness of this rule are 

based on cost-effectiveness analysis of 

ASHRAE Standard 90.1–2016 and 

ASHRAE Standard 90.1–2019 

conducted by DOE’s State building 

energy codes program,12 as well as 

DOE’s EA for this rulemaking.13 As 

described in the EA, DOE identified a 

rate of new Federal commercial 

construction of 19.54 million square feet 

per year with a distribution of building 

types as shown in Table IV.1. The 

distribution of building types is based 

on an extraction of the latest 10 years of 

new construction data entered into the 

Federal Real Property Portfolio 

Management System (FRPP MS).14

Table IV.1 also shows the prototype 

buildings incorporated into computer 

simulations that are used to estimate 

energy use in each building type. DOE 

derived these prototype buildings from 

16 building types in 17 climate zones 15

using its Commercial Prototype 

Building models.16 Of the 16 prototype 

buildings, DOE developed costs for 6 

prototype buildings to determine the 

cost effectiveness of ASHRAE Standard 

90.1–2016 and ASHRAE Standard 90.1– 

2019. DOE then extracted the costeffectiveness information for those 

prototype buildings and weighted those 

values as appropriate to obtain an 

average cost effectiveness value for 

building types found in the Federal 

commercial sector. 

TABLE IV.1—NEW FEDERAL COMMERCIAL AND HIGH-RISE MULTI-FAMILY CONSTRUCTION VOLUME BY BUILDING TYPE

Building type 

Fraction of 

Federal 

construction 

volume 

(by floor area) 

(%) 

Assumed BECP prototypes for energy savings 

Assumed BECP 

prototypes for cost 

effectiveness 

Office .............................................. 20.74 Small Office, Medium Office, Large Office ................ Small Office, Large Office. 

Dormitories and Barracks .............. 14.85 Small Hotel, Mid-rise Apartment, High-rise Apartment.Small Hotel, Mid-rise Apartment. 


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17Note that the values in Table VI.2 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for 

Standard 90.1–2016, which were in 2018$. This 

adjustment was made using the GDP deflator value 

to correct for inflation between 2018 and 2020. 

Organization for Economic Co-operation and 

Development, GDP Implicit Price Deflator in United 

States, retrieved from FRED, Federal Reserve Bank 

of St. Louis; fred.stlouisfed.org/series/ 

USAGDPDEFAISMEI, Updated February 17, 2021. 

These values have also been adjusted to reflect the 

same underlying economic assumptions as the 2019 

version, and sales tax has also been removed. 

TABLE IV.1—NEW FEDERAL COMMERCIAL AND HIGH-RISE MULTI-FAMILY CONSTRUCTION VOLUME BY BUILDING TYPE— 

Continued 

Building type 

Fraction of 

Federal 

construction 

volume 

(by floor area) 

(%) 

Assumed BECP prototypes for energy savings 

Assumed BECP 

prototypes for cost 

effectiveness 

School ............................................ 14.33 Secondary School ...................................................... Primary School. 

Service ........................................... 13.31 Stand-alone Retail, Non-refrigerated Warehouse ...... Stand-alone Retail.

Other Institutional Uses .................. 5.90 None * ......................................................................... None. 

Hospital .......................................... 5.57 Hospital ....................................................................... Small Office, Large Office. 

Warehouses ................................... 5.37 Non-Refrigerated Warehouse .................................... None. 

Laboratories ................................... 4.37 Medium Office, Hospital ............................................. Small Office, Large Office. 

All Other ......................................... 3.45 None ........................................................................... None. 

Outpatient Healthcare Facility ........ 3.35 Outpatient Healthcare ................................................ Small Office. 

Industrial ......................................... 2.36 None ........................................................................... None. 

Child Care Center .......................... 1.18 Primary School ........................................................... Primary School. 

Communications Systems .............. 1.11 None ........................................................................... None. 

Prisons and Detention Centers ...... 1.01 None ........................................................................... None. 

Family Housing .............................. 0.68 Mid-rise Apartment ..................................................... Mid-rise Apartment. 

Navigation and Traffic Aids ............ 0.53 None ........................................................................... None. 

Land Port of Entry .......................... 0.53 Non-refrigerated Warehouse ...................................... None. 

Border/Inspection Station ............... 0.49 Small Office, Non-refrigerated Warehouse ................ Small Office. 

Facility Security .............................. 0.31 Small Office ................................................................ Small Office. 

Data Centers .................................. 0.23 None ........................................................................... None. 

Museum .......................................... 0.19 None ........................................................................... None. 

Comfort Station/Restrooms ............ 0.07 Non-refrigerated Warehouse ...................................... None. 

Public Facing Facility ..................... 0.05 Stand-alone Retail ...................................................... Stand-alone Retail. 

Aviation Security Related ............... 0.01 Small Office ................................................................ Small Office. 

Post Office ...................................... 0.01 Stand-alone Retail ...................................................... Stand-alone Retail. 

* Note that energy savings and cost-effectiveness mapping are not available for a number of Federal building types, with other institutional 

uses, warehouses, and all other being the largest Federal building types with no reliable mapping. As described in this section, DOE considered 

energy savings and costs for these unmapped Federal building types to be equivalent to the weighted energy savings and cost for the mapped 

Federal building types. 

DOE has determined incremental 

construction first cost information for 

the building types and climate zones 

analyzed for ASHRAE Standard 90.1– 

2016 versus ASHRAE Standard 90.1– 

2013 (see Table IV.2),17 ASHRAE 

Standard 90.1–2019 versus ASHRAE 

Standard 90.1–2016 (see Table IV.3), 

and for ASHRAE Standard 90.1–2019 

versus ASHRAE Standard 90.1–2013 

(see Table IV.4). 

TABLE IV.2—INCREMENTAL CONSTRUCTION FIRST COST (2020$) FOR ASHRAE STANDARD 90.1–2016 VS. ASHRAE 

STANDARD 90.1–2013 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. $673 $584 $515 $1,666 $641 

$/ft2 ..................................................... 0.12 0.11 0.09 0.30 0.12 

Large Office ......................................... First Cost ............................................. 261,781 268,194 196,408 354,808 223,553 

$/ft2 ..................................................... 0.52 0.54 0.39 0.71 0.45 

Stand-alone Retail ............................... First Cost ............................................. 19,608 20,240 19,740 21,563 19,363 

$/ft2 ..................................................... 0.79 0.82 0.80 0.87 0.78 

Primary School .................................... First Cost ............................................. (126,946) (121,994) (116,139) (94,722) (122,894) 

$/ft2 ..................................................... (1.72) (1.65) (1.57) (1.28) (1.66) 

Small Hotel .......................................... First Cost ............................................. (104,866) (104,624) (104,396) (101,194) (103,044) 

$/ft2 ..................................................... (2.43) (2.42) (2.42) (2.34) (2.38) 

Mid-rise Apartment .............................. First Cost ............................................. (18,343) (17,490) (18,113) (12,445) (25,126) 

$/ft2 ..................................................... (0.54) (0.52) (0.54) (0.37) (0.74) 

* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this particular transition 

from ASHRAE Standard 90.1–2013 to ASHRAE Standard 90.1–2016, the cost reduction was mainly because of smaller and less expensive HVAC equipment since 

the building HVAC load had decreased. This cost reduction is part of the first cost calculation. Note that in addition to reduced equipment costs, there is reduced 

ductwork or piping costs as well. 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20277 

18For the Federal office building, the small and 

large office prototype first costs were averaged. For 

the Federal education building, the primary school 

prototype first cost was used. For the Federal 

dormitories/barracks building type, the small hotel 

and mid-rise apartment prototype first costs were 

averaged. 

TABLE IV.3—INCREMENTAL CONSTRUCTION FIRST COST (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE 

STANDARD 90.1–2016 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. ($9,527) ($9,787) ($9,890) ($9,521) ($9,563) 

$/ft2 ..................................................... (1.73) (1.78) (1.80) (1.73) (1.74) 

Large Office ......................................... First Cost ............................................. (989,010) (976,327) (930,667) (1,037,775) (997,955) 

$/ft2 ..................................................... (1.98) (1.96) (1.87) (2.08) (2.00) 

Stand-alone Retail ............................... First Cost ............................................. (33,532) (33,999) (34,505) (34,348) (34,957) 

$/ft2 ..................................................... (1.36) (1.38) (1.40) (1.39) (1.42) 

Primary School .................................... First Cost ............................................. (156,050) (141,073) (153,621) (149,787) (151,492) 

$/ft2 ..................................................... (2.11) (1.91) (2.08) (2.03) (2.05) 

Small Hotel .......................................... First Cost ............................................. 26,805 26,218 26,335 26,078 25,616 

$/ft2 ..................................................... 0.62 0.61 0.61 0.60 0.59 

Mid-rise Apartment .............................. First Cost ............................................. (12,251) (12,645) (13,894) (8,127) (7,839) 

$/ft2 ..................................................... (0.36) (0.37) (0.41) (0.24) (0.23) 

* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this particular transition 

from ASHRAE Standard 90.1–2016 to ASHRAE Standard 90.1–2019, the cost reduction was mainly because of smaller and less expensive HVAC equipment since 

the building HVAC load had decreased. This cost reduction is part of the first cost calculation. 

Table IV.4 combines the incremental 

first costs associated with the 2016 and 

2019 versions of ASHRAE Standard 

90.1. The 2016 analysis was adjusted to 

use the same underlying economic 

assumptions as the 2019 version, 

including fuel prices, fuel price 

escalations, and labor and material 

costs. Additionally, the underlying 

calculations for both the 2016 and 2019 

versions were adjusted to remove sales 

tax, as Federal building construction 

may be exempt from State sales tax, 

depending on the State. 

TABLE IV.4—INCREMENTAL CONSTRUCTION FIRST COST (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE 

STANDARD 90.1–2013 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. ($8,854) ($9,204) ($9,375) ($7,855) ($8,922) 

$/ft2 ..................................................... (1.61) (1.67) (1.70) (1.43) (1.62) 

Large Office ......................................... First Cost ............................................. (727,229) (708,133) (734,259) (682,967) (774,402) 

$/ft2 ..................................................... (1.46) (1.42) (1.47) (1.37) (1.55) 

Stand-alone Retail ............................... First Cost ............................................. (13,924) (13,759) (14,765) (12,785) (15,593) 

$/ft2 ..................................................... (0.56) (0.56) (0.60) (0.52) (0.63) 

Primary School .................................... First Cost ............................................. (282,996) (263,067) (269,760) (244,509) (274,386) 

$/ft2 ..................................................... (3.83) (3.56) (3.65) (3.31) (3.71) 

Small Hotel .......................................... First Cost ............................................. (78,060) (78,406) (78,061) (75,117) (77,428) 

$/ft2 ..................................................... (1.81) (1.81) (1.81) (1.74) (1.79) 

Mid-rise Apartment .............................. First Cost ............................................. (30,594) (30,136) (32,007) (20,571) (32,965) 

$/ft2 ..................................................... (0.91) (0.89) (0.95) (0.61) (0.98) 

* Negative costs (shown in parentheses) indicate a reduction in cost due to changes in the code, usually due to reduced HVAC capacity. In this particular transition 

from ASHRAE Standard 90.1–2013 to ASHRAE Standard 90.1–2019, the cost reduction was mainly because of smaller and less expensive HVAC equipment since 

the building load had decreased. This cost reduction is part of the first cost calculation. Note that in addition to reduced equipment costs, there may be reduced ductwork or piping costs as well. 

DOE used data from Table IV.1 and 

Table IV.4 to calculate preliminary 

values for overall incremental first cost 

of construction for Federal commercial 

and high-rise, multi-family residential 

buildings. DOE calculated the 

incremental first cost of the Federal 

building types based on the DOE cost 

prototypes shown in the far-right 

column of Table IV.1 of this document. 

DOE then calculated the weighted 

average incremental cost for mapped 

Federal building types based on their 

corresponding BECP prototypes, which 

represent an estimated 79.3 percent of 

new Federal construction. This 

weighted incremental cost was assigned 

to un-mapped Federal building types, 

and a total weighted incremental cost 

was calculated by multiplying the 

incremental cost for each Federal 

building type by the fraction of Federal 

construction shown in Table IV.1 of this 

document. 

The national incremental first cost for 

building types was developed by 

multiplying the average (across climate 

zones) incremental first cost of the 

prototypes (determined from the DOE 

State building energy codes program 

ASHRAE Standard 90.1 costeffectiveness analysis) by the fraction of 

the Federal sector construction volume 

shown in Table IV.1, and then 

multiplying that by the total estimate of 

Federal new construction floorspace.18

DOE estimates that total first cost 

outlays for new Federal buildings will 

be less under ASHRAE Standard 90.1– 

2019 than ASHRAE Standard 90.1– 

2013, primarily due to lower HVAC 

equipment costs for some building types 

(See Table IV.2). The resulting total 

incremental first cost estimate is a 

savings of $32.67 million per year. The 

average first cost decrease is $1.67 per 

square foot. 

DOE also analyzed the relative impact 

of the final rule on the first cost of new 

constructed Federal buildings as a 

percentage of the overall annual cost of 

newly constructed Federal commercial 

and high-rise buildings. In order to 

estimate the total cost of construction 

for new Federal buildings, DOE 

obtained estimated construction costs 

for new Federal commercial and highrise multifamily buildings were 


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20278 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

19RS Means. 2020. RS Means Building 

Construction Cost Data, 78th Ed. Construction 

Publishers & Consultants. Norwell, MA. 

20The energy costs used were the national 

average energy costs used by ASHRAE in the 

development of Standard 90.1–2019. To quote the 

cost-effectiveness analysis report ‘‘Energy rates used 

to calculate the energy costs from the modeled 

energy usage were $0.98/therm for fossil fuel and 

$0.1063/kWh for electricity. These rates were used 

for the 90.1–2019 energy analysis and derived from 

the EIA data. These were the values approved by 

the SSPC 90.1 for cost-effectiveness for the 

evaluation of individual addenda during the 

development of 90.1–2019.’’ 21For the Federal office building, the small and 

large office prototype LCCs were weighted by 

estimated fraction of small and large offices 

observed in the FRPP MS database over the past 10 

years of construction. For the Federal education 

building, the primary school prototype LCC was 

used. For the Federal dorm/barracks building type, 

the small office, small hotel and mid-rise apartment 

prototype LCCs were averaged. 

22Note that the values in Table VI.6 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for 

Standard 90.1–2016, which were in 2018$. This 

adjustment was made using the GDP deflator value 

to correct for inflation between 2018 and 2020. 

Organization for Economic Co- operation and 

Development, GDP Implicit Price Deflator in United 

States, retrieved from FRED, Federal Reserve Bank 

of St. Louis; fred.stlouisfed.org/series/ 

USAGDPDEFAISMEI, Updated February 17, 2021. 

These values have also been adjusted to reflect the 

same underlying economic assumptions as the 2019 

version. 

obtained from RS Means (2020) 19 for 

the six building types analyzed in DOE’s 

cost-effectiveness report. These new 

construction costs were weighted by the 

percent of Federal floorspace to develop 

an average cost of a new Federal 

building of $198 per square foot, as 

shown in Table IV.5. This average 

construction cost may be multiplied by 

the 19.54 million square feet of new 

Federal construction per year used in 

this rulemaking to estimate the annual 

total cost of new Federal commercial 

and high-rise multi-family construction 

of $3.86 billion. As previously noted, 

first cost savings associated with this 

rulemaking are estimated at $32.67 

million per year, indicating a potential 

cost reduction in new Federal 

construction costs of 0.85 percent 

($32.67 million divided by $3.86 

billion). 

TABLE IV.5—FIRST COST OF TYPICAL NEW FEDERAL BUILDING IN $/ft2 

Federal building type Weight 

(%) 

First cost * 

($) 

Weighted cost 

($) 

Office ............................................................................................................................................ 20.74 210 43.51 

Barracks and Dormitories ............................................................................................................ 14.85 217 32.18 

School .......................................................................................................................................... 14.33 225 32.25 

Service ......................................................................................................................................... 13.31 116 15.44 

Hospital ........................................................................................................................................ 5.57 200 11.14 

Laboratories ................................................................................................................................. 4.37 200 8.73 

Outpatient Healthcare Facility ..................................................................................................... 3.35 220 7.38 

Child Care Center ........................................................................................................................ 1.18 225 2.67 

Family Housing >3 Stories .......................................................................................................... 0.68 218 1.48 

Border/Inspection Station ............................................................................................................ 0.49 220 1.07 

Facility Security ............................................................................................................................ 0.31 220 0.69 

Aviation Security Related ............................................................................................................ 0.01 220 0.02 

Public Facing Facility ................................................................................................................... 0.05 116 0.06 

Post Office ................................................................................................................................... 0.01 116 0.01 

Remaining Federal Stock ............................................................................................................ 20.75 198 41.00 

Federal Average ................................................................................................................... 100.00 198 197.62 

* All building first cost data from RS Means 2020. 

For annual average (first year) energy 

cost savings, DOE used a similar 

approach to that used for incremental 

first cost. That is, DOE developed the 

national first year energy cost savings 20

for building types by multiplying the 

average (across climate zones) energy 

cost savings (determined from the DOE 

ASHRAE Standard 90.1 costeffectiveness analysis) by the fraction of 

the Federal sector construction volume 

shown in Table IV.1, and then 

multiplying that by the total estimate of 

Federal new construction floorspace.21

Table IV.6 22 and Table IV.7 show 

annual energy cost savings by prototype 

buildings for ASHRAE Standard 90.1– 

2016 compared to ASHRAE Standard 

90.1–2013 and for ASHRAE Standard 

90.1–2019 compared to ASHRAE 

Standard 90.1–2016 respectively, and 

Table IV.8 shows the combined energy 

cost savings associated with the 2016 

and 2019 versions of ASHRAE Standard 

90.1. As was done for the incremental 

cost analysis, the 2016 energy cost 

savings analysis was adjusted to use the 

same underlying economic assumptions 

as the 2019 version, including fuel 

prices, fuel price escalations, labor and 

material costs, and the removal of sales 

tax. The resulting total annual energy 

cost savings for 19.54 million square 

feet of annual construction was 

estimated to be $3.4 million. The 

average annual energy savings in year 1 

was estimated to be $0.17 per square 

foot. Note the annual energy cost 

savings are for one year of Federal 

commercial and high-rise multi-family 

residential construction and that those 

savings would accumulate over the 

evaluation period. 

TABLE IV.6—AVERAGE FIRST YEAR ENERGY COST SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2016 VS. ASHRAE 

STANDARD 90.1–2013 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. $597 $583 $589 $557 $591 

$/ft2 ..................................................... 0.11 0.11 0.11 0.10 0.11 

Large Office ......................................... First Cost ............................................. 37,492 39,844 19,652 49,019 45,108 

$/ft2 ..................................................... 0.08 0.08 0.04 0.10 0.09 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20279 

23The energy costs used were the national 

average energy costs used by ASHRAE in the 

development of Standard 90.1–2019. To quote the 

cost-effectiveness analysis report ‘‘Energy rates used 

to calculate the energy costs from the modeled 

energy usage were $0.98/therm for fossil fuel and 

$0.1063/kWh for electricity. These rates were used 

for the 90.1–2019 energy analysis and derived from 

the EIA data. These were the values approved by 

the SSPC 90.1 for cost-effectiveness for the 

evaluation of individual addenda during the 

development of 90.1–2019.’’ 

24For the Federal office building, the small and 

large office prototype LCCs were weighted by 

estimated fraction of small and large offices 

observed in the FRPP MS database over the past 10 

years of construction. For the Federal education 

building, the primary school prototype LCC was 

used. For the Federal dorm/barracks building type, 

the small office, small hotel and mid-rise apartment 

prototype LCCs were averaged. 

25Note that the values in Table IV.9 have been 

adjusted to reflect 2020$ from the table that appears 

in DOE’s determination of energy savings for 

Standard 90.1–2016, which were in 2018$. This 

adjustment was made using the GDP deflator value 

to correct for inflation between 2018 and 2020. 

Organization for Economic Co-operation and 

Development, GDP Implicit Price Deflator in United 

States, retrieved from FRED, Federal Reserve Bank 

of St. Louis; fred.stlouisfed.org/series/ 

USAGDPDEFAISMEI, Updated February 17, 2021. 

These values have also been adjusted to reflect the 

same underlying economic assumptions as the 2019 

version, and sales tax has also been removed. 

TABLE IV.6—AVERAGE FIRST YEAR ENERGY COST SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2016 VS. ASHRAE 

STANDARD 90.1–2013—Continued 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Stand-alone Retail ............................... First Cost ............................................. 3,324 3,214 2,895 3,075 2,778 

$/ft2 ..................................................... 0.13 0.13 0.12 0.12 0.11 

Primary School .................................... First Cost ............................................. 15,245 16,130 11,841 15,560 16,377 

$/ft2 ..................................................... 0.21 0.22 0.16 0.21 0.22 

Small Hotel .......................................... First Cost ............................................. 6,964 6,594 6,025 7,193 8,019 

$/ft2 ..................................................... 0.16 0.15 0.14 0.17 0.19 

Mid-rise Apartment .............................. First Cost ............................................. 1,715 1,615 1,649 1,461 1,881 

$/ft2 ..................................................... 0.05 0.05 0.05 0.04 0.06 

TABLE IV.7—AVERAGE FIRST YEAR ENERGY COST SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE 

STANDARD 90.1–2016 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. $278 $259 $271 $237 $235 

$/ft2 ..................................................... 0.05 0.05 0.05 0.04 0.04 

Large Office ......................................... First Cost ............................................. 36,020 36,525 29,947 29,898 31,038 

$/ft2 ..................................................... 0.07 0.07 0.06 0.06 0.06 

Stand-alone Retail ............................... First Cost ............................................. 2,674 2,309 2,395 2,035 1,927 

$/ft2 ..................................................... 0.11 0.09 0.10 0.08 0.08 

Primary School .................................... First Cost ............................................. 6,320 6,085 6,945 5,411 5,439 

$/ft2 ..................................................... 0.09 0.08 0.09 0.07 0.07 

Small Hotel .......................................... First Cost ............................................. 4,002 3,754 3,833 3,364 3,203 

$/ft2 ..................................................... 0.09 0.09 0.09 0.08 0.07 

Mid-rise Apartment .............................. First Cost ............................................. 1,747 1,581 732 542 522 

$/ft2 ..................................................... 0.05 0.05 0.02 0.02 0.02 

TABLE IV.8—AVERAGE FIRST YEAR ENERGY COST SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE 

STANDARD 90.1–2013 

Prototype Value 

ASHRAE climate zone * 

2A 3A 3B 4A 5A 

Small Office ......................................... First Cost ............................................. $874 $842 $860 $794 $826 

$/ft2 ..................................................... 0.16 0.15 0.16 0.14 0.15 

Large Office ......................................... First Cost ............................................. 73,512 76,369 49,598 78,917 76,146 

$/ft2 ..................................................... 0.15 0.15 0.10 0.16 0.15 

Stand-alone Retail ............................... First Cost ............................................. 5,998 5,522 5,290 5,111 4,705 

$/ft2 ..................................................... 0.24 0.22 0.21 0.21 0.19 

Primary School .................................... First Cost ............................................. 21,565 22,215 18,786 20,971 21,816 

$/ft2 ..................................................... 0.29 0.30 0.25 0.28 0.29 

Small Hotel .......................................... First Cost ............................................. 10,966 10,348 9,858 10,557 11,222 

$/ft2 ..................................................... 0.25 0.24 0.23 0.24 0.26 

Mid-rise Apartment .............................. First Cost ............................................. 3,462 3,196 2,381 2,003 2,403 

$/ft2 ..................................................... 0.10 0.09 0.07 0.06 0.07 

For LCC net savings, DOE used a 

similar approach to that used for 

incremental first cost and first year 

energy cost savings. That is, DOE 

developed the national annual LCC net 

savings 23 for building types by 

multiplying the average (across climate 

zones) LCC net savings (determined 

from the DOE ASHRAE Standard 90.1 

cost-effectiveness analysis) by the 

fraction of the Federal sector 

construction volume shown in Table 

IV.1, and then multiplying that by the 

total estimate of Federal new 

construction floorspace.24 Table IV.9 25

and Table IV.10 show annual LCC net 

savings by prototype buildings for 

ASHRAE Standard 90.1–2016 compared 

to ASHRAE Standard 90.1–2013 and for 

ASHRAE Standard 90.1–2019 compared 

to ASHRAE Standard 90.1–2016 

respectively, and Table IV.11 shows the 

combined LCC associated with the 2016 

and 2019 versions of ASHRAE Standard 

90.1. As was done for the incremental 

cost analysis, the 2016 LCC analysis was 

adjusted to use the same underlying 


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20280 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

26Lavappa, P. and J. Kneifel. 2021. Energy Price 

Indices and Discount Factors for Life-Cycle Cost 

Analysis-2021 Annual Supplement to NIST 

Handbook 135. 

economic assumptions as the 2019 

version, including fuel prices, fuel price 

escalations, labor and material costs, 

and the removal of sales tax. The 

resulting total LCC net savings for 19.54 

million square feet of annual 

construction was estimated to be $161.9 

million. The average LCC net savings in 

year 1 was estimated to be $8.29 per 

square foot. Note the annual LCC 

savings are for one year of Federal 

commercial and high-rise multi-family 

residential construction and that those 

savings would accumulate over the LCC 

evaluation period. For the purpose of 

this analysis, DOE relied on a 30-year 

period.26

TABLE IV.9—ANNUAL LIFE-CYCLE COST (LCC) NET SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2016 VS. 

ASHRAE STANDARD 90.1–2013 

Prototype 

ASHRAE climate zone 

Value 

2A 3A 3B 4A 5A 

Small Office: 

Total ............................................................................................................... $11,545 $11,362 $11,605 $9,814 $11,502 

$/ft2 ................................................................................................................. 2.10 2.07 2.11 1.78 2.09 

Large Office: 

Total ............................................................................................................... 393,008 459,357 166,387 584,969 722,155 

$/ft2 ................................................................................................................. 0.79 0.92 0.33 1.17 1.45 

Stand-alone Retail: 

Total ............................................................................................................... 297,938 294,578 289,116 290,447 287,461 

$/ft2 ................................................................................................................. 12.07 11.93 11.71 11.76 11.64 

Primary School: 

Total ............................................................................................................... 383,418 394,371 299,407 349,720 402,682 

$/ft2 ................................................................................................................. 5.18 5.33 4.05 4.73 5.44 

Small Hotel: 

Total ............................................................................................................... 244,166 236,409 225,204 244,098 261,430 

$/ft2 ................................................................................................................. 5.65 5.47 5.21 5.65 6.05 

Mid-rise Apartment: 

Total ............................................................................................................... 67,323 63,971 65,950 54,724 83,693 

$/ft2 ................................................................................................................. 2.00 1.90 1.95 1.62 2.48 

TABLE IV.10—ANNUAL LIFE-CYCLE COST (LCC) NET SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. 

ASHRAE STANDARD 90.1–2016 

Prototype 

ASHRAE climate zone 

Value 

2A 3A 3B 4A 5A 

Small Office: 

Total ............................................................................................................... $22,458 $22,257 $22,670 $21,425 $21,303 

$/ft2 ................................................................................................................. 4.08 4.05 4.12 3.89 3.87 

Large Office: 

Total ............................................................................................................... 2,140,166 2,137,734 1,907,461 2,083,232 2,054,131 

$/ft2 ................................................................................................................. 4.29 4.29 3.83 4.18 4.12 

Stand-alone Retail: 

Total ............................................................................................................... 120,306 113,599 117,007 108,246 106,638 

$/ft2 ................................................................................................................. 4.87 4.60 4.74 4.38 4.32 

Primary School: 

Total ............................................................................................................... 395,974 370,009 398,497 367,937 372,306 

$/ft2 ................................................................................................................. 5.35 5.00 5.39 4.97 5.03 

Small Hotel: 

Total ............................................................................................................... 604,477 600,247 601,537 592,772 590,215 

$/ft2 ................................................................................................................. 13.99 13.89 13.92 13.72 13.66 

Mid-rise Apartment: 

Total ............................................................................................................... 88,940 89,183 73,209 57,750 56,579 

$/ft2 ................................................................................................................. 2.64 2.64 2.17 1.71 1.68 

TABLE IV.11—ANNUAL LIFE-CYCLE COST (LCC) NET SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. 

ASHRAE STANDARD 90.1–2013 

Prototype 

ASHRAE climate zone 

Value 

2A 3A 3B 4A 5A 

Small Office: 

Total ............................................................................................................... $34,003 $33,620 $34,274 $31,238 $32,805 

$/ft2 ................................................................................................................. 6.18 6.11 6.23 5.68 5.96 

Large Office: 

Total ............................................................................................................... 2,533,174 2,597,090 2,073,848 2,668,200 2,776,287 

$/ft2 ................................................................................................................. 5.08 5.21 4.16 5.35 5.57 

Stand-alone Retail: 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20281 

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

Annual Energy Outlook 2021 with Projections to 

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

outlooks/aeo/. 28Office 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.11—ANNUAL LIFE-CYCLE COST (LCC) NET SAVINGS (2020$) FOR ASHRAE STANDARD 90.1–2019 VS. 

ASHRAE STANDARD 90.1–2013—Continued 

Prototype 

ASHRAE climate zone 

Value 

2A 3A 3B 4A 5A 

Total ............................................................................................................... 418,244 408,176 406,123 398,693 394,099 

$/ft2 ................................................................................................................. 16.94 16.53 16.45 16.15 15.96 

Primary School: 

Total ............................................................................................................... 779,392 764,380 697,904 717,657 774,987 

$/ft2 ................................................................................................................. 10.54 10.33 9.44 9.70 10.48 

Small Hotel: 

Total ............................................................................................................... 848,643 836,656 826,742 836,871 851,646 

$/ft2 ................................................................................................................. 19.64 19.37 19.14 19.37 19.71 

Mid-rise Apartment: 

Total ............................................................................................................... 156,263 153,154 139,159 112,474 140,271 

$/ft2 ................................................................................................................. 4.63 4.54 4.12 3.33 4.16 

DOE determined that the total 

incremental first cost estimate for 

Federal buildings (as mapped to the 

prototype buildings in Table IV.1) is a 

savings of $32.67 million per year, with 

an average first cost decrease of $1.67 

per square foot. DOE determined that 

the total first year energy cost estimate 

is a savings of $3.4 million per year, 

with an average first year energy cost 

savings of $0.17 per square foot. DOE 

estimated $161.9 million in annual LCC 

net savings for the entire Federal 

commercial and multi-family high-rise 

buildings sector with an average LCC 

net savings of $8.29 per square foot. 

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 ASHRAE 

90.1–2013 and ASHRAE 90.1–2019. The 

NPV is the value in the present of a 

time-series of costs and savings, equal to 

the present value of savings in operating 

cost minus the present value of the 

increased total equipment cost 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 above to calculate first year 

energy cost savings and LCC net 

savings, for the NPV calculations, DOE 

determined the per-unit annual savings 

in operating cost by multiplying the per 

square foot annual electricity and 

natural gas savings in energy 

consumption by the appropriate energy 

price from EIA’s AEO2021.27 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.28 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 ASHRAE 90.1–2019 and 

ASHRAE 90.1–2013), 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 

ASHRAE 90.1–2019 and ASHRAE 90.1– 

2013), 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 

ASHRAE 90.1–2019 compared to 

ASHRAE 90.1–2013. 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– 


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20282 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

29See 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). 

30See National Academies of Sciences, 

Engineering, and Medicine. 2017. Valuing Climate 

Damages: Updating Estimation of the Social Cost of 

Carbon Dioxide. Washington, DC: The National 

Academies Press. doi.org/10.17226/24651. 

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. 

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).29 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).30 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 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20283 

31For 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. 

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 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 

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 rule DOE centers 

attention on a global measure of SC– 

GHG. This approach is the same as that 

taken in DOE regulatory analyses from 

2012 through 2016. 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 of this document. 

a. Social Cost of Carbon 

The SC–CO2 values used for this rule 

were generated using the values 

presented in the 2021 update from the 

IWG’s February 2021 TSD. Table IV.12 

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.31


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32See 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). 

33See Interagency Working Group on Social Cost 

of Greenhouse Gases, Technical Support Document: 

Social Cost of Carbon, Methane, and Nitrous Oxide. 

Interim Estimates Under Executive Order 13990, 

Washington, DC, February 2021. Available at: 

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

TechnicalSupportDocument_

SocialCostofCarbonMethaneNitrousOxide.pdf (last 

accessed March 17, 2021). 

TABLE IV.12—ANNUAL SC–CO2 VALUES FROM 2021 INTERAGENCY UPDATE, 2020–2050 

[2020$ per metric ton CO2] 

Year 

Discount rate 

5% 3% 2.5% 3% 

Average Average Average 95th percentile 

2020 ......................................................................................... 14 51 76 152 

2025 ......................................................................................... 17 56 83 169 

2030 ......................................................................................... 19 62 89 187 

2035 ......................................................................................... 22 67 96 206 

2040 ......................................................................................... 25 73 103 225 

2045 ......................................................................................... 28 79 110 242 

2050 ......................................................................................... 32 85 116 260 

In calculating the potential global 

benefits resulting from reduced CO2

emissions, DOE used the values from 

the 2021 interagency report, 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.32 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 in the IWG 

update. 

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.33 Table IV.13 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.13—ANNUAL SC–CH4 AND SC–N2O VALUES FROM 2021 INTERAGENCY UPDATE, 2020–2050 

[2020$ per metric ton] 

Year 

SC–CH4 SC–N2O 

Discount rate and statistic Discount rate and statistic 

5% 3% 2.5% 3% 5% 3% 2.5% 3% 

Average Average Average 95th percentile Average Average Average 95th percentile 

2020 ...................... 670 1500 2000 3900 5800 18000 27000 48000 

2025 ...................... 800 1700 2200 4500 6800 21000 30000 54000 

2030 ...................... 940 2000 2500 5200 7800 23000 33000 60000 

2035 ...................... 1100 2200 2800 6000 9000 25000 36000 67000 

2040 ...................... 1300 2500 3100 6700 10000 28000 39000 74000 

2045 ...................... 1500 2800 3500 7500 12000 30000 42000 81000 

2050 ...................... 1700 3100 3800 8200 13000 33000 45000 88000 

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 


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34 ‘‘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. 35 ‘‘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. 

36See 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/ 

TechnicalvSupportDocument_SocialCostofCarbon

MethaneNitrousOxide.pdf. 

37On 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. 

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.34 The EPA 

document provides high and low 

estimates for 2025 and 2030 at 3- and 7- 

percent discount rates.35 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 relying on ‘‘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 in accordance with applicable 

Executive Orders, and applicable 

guidance. 

C. Conclusion 

This analysis results in a cumulative 

net present value (NPV) of total benefits 

of the rule of $1.66 billion (at a 7- 

percent discount rate) and $3.48 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.14). 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).36 37 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 ASHRAE 90.1–2019, 

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.15 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.14—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS

[Billion 2020$] 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

3% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................... 1.86 

Climate Benefits * ................................................................................................................................................................. 0.38 

Health Benefits ** ................................................................................................................................................................. 0.60 

Total Benefits † ............................................................................................................................................................. 2.84 

Consumer Incremental Product Costs †† ............................................................................................................................ ¥0.64 

Net Benefits .................................................................................................................................................................. 3.48 

7% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................... 0.65 


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TABLE IV.14—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS—Continued 

[Billion 2020$] 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

Climate Benefits * ................................................................................................................................................................. 0.38 

Health Benefits ** ................................................................................................................................................................. 0.22 

Total Benefits † ............................................................................................................................................................. 1.25 

Consumer Incremental Product Costs †† ............................................................................................................................ ¥0.41 

Net Benefits .................................................................................................................................................................. 1.66 

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. 

TABLE IV.15—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 ......................................................................................... 94.9 52.5 

Climate Benefits * ..................................................................................................................... 19.1 19.1 

Health Benefits ** ..................................................................................................................... 30.7 18.1 

Total Benefits † ................................................................................................................. 144.8 89.7 

Costs †† ................................................................................................................................... ¥32.7 ¥32.7 

Net Benefits ...................................................................................................................... 177.5 122.4 

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. 

Accordingly, DOE has determined 

that the implementation of ASHRAE 

Standard 90.1–2019 versus Standard 

90.1–2013 for Federal commercial and 

multi-family high-rise buildings is costeffective. DOE is presenting monetized 

climate benefits in accordance with the 

applicable Executive Orders and DOE 

would reach the same conclusion 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20287 

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

commercial and multi-family high-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 

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 

measure more difficult or expensive). 

VI. Reference Resources

DOE first prepared this list of

resources to help Federal agencies 

achieve building energy efficiency 

levels for the original rulemaking 

establishing the baseline energy 

performance standards for new Federal 

commercial and multi-family high-rise 

residential buildings. 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 necessary. These 

resources come in many forms and in a 

variety of media. Resources are 

provided for all buildings, and also 

specifically for commercial and multifamily high-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. 

A. Resources for Commercial and MultiFamily High-Rise Residential Buildings

The following references and sources 

are provided to aid interested parties in 

gathering additional information and 

specifics regarding various aspects of 

this rule. 

(1) Energy Efficient Products—FEMP

and U.S. Environmental Protection

Agency (EPA) ENERGY STAR Program

www.energy.gov/eere/femp/searchenergy-efficient-products 

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

Federal agencies are required by 

EPAct 2005 and 10 CFR part 436 to 

specify 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. This 

equipment is generally more efficient 

than the corresponding requirements of 

ASHRAE Standard 90.1–2019 and may 

be used to achieve part of the savings 

required of Federal building designs. 

(This rule does not require the use of 

EnergyStar or FEMP-designated 

equipment, but 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) LCC Analysis—FEMP

www.wbdg.org/FFC/NIST/hdbk_135.pdf 

nvlpubs.nist.gov/nistpubs/ir/2018/ 

NIST.IR.85-3273-33.pdf 

As detailed previously, agencies are 

required to determine the percentage 

beyond compliance with ASHRAE 

Standard 90.1 that would be life-cycle 

cost effective and to design new Federal 

buildings to achieve that percentage. 

DOE has promulgated LCC analysis 

rules in 10 CFR part 436 subpart A LifeCycle Cost Methodology and Procedures 

(55 FR 48220, Nov. 20, 1990, as 

amended at 61 FR 32650, June 25, 1996) 

that conform to requirements in the 

Federal Energy Management 

Improvement Act of 1988 (Pub. L. 100– 

615) and subsequent energy

conservation legislation. LCC guidance

and required discount rates and energy

price projections are determined

annually by FEMP and the Energy

Information Administration (EIA) and

are published in the Annual

Supplement to The National Institute of

Standards and Technology (NIST)

Handbook 135: ‘‘Energy Price Indices

and Discount Factors for Life-Cycle Cost 

Analysis.’’ 

(3) Building Energy Efficiency Support

Resources—DOE Building Technologies

Office

www.energy.gov/eere/buildings/ 

building-technologies-office 

www.energy.gov/eere/buildings/ 

building-energy-modeling 

www.energy.gov/eere/buildings/aboutbuilding-energy-modeling 

The website for DOE’s Building 

Technologies Office provides 

information, case studies, and tools to 

help evaluate energy efficiency, 

renewable energy, and sustainability in 

buildings. The Whole-Building Energy 

Modeling (BEM) is a versatile, 

multipurpose tool that is used in new 

building and retrofit design, code 

compliance, green certification, 

qualification for tax credits and utility 

incentives, and real-time building 

control. BEM can be used to assess the 

inherent performance of a building 

while controlling for specific use and 

operation. 

(4) ASHRAE Standard 90.1–2019—

ASHRAE

www.ashrae.org/technical-resources/ 

standards-and-guidelines/read-onlyversions-of-ashrae-standards 

The baseline energy efficiency 

standard for commercial and multifamily high-rise buildings is ANSI/ 

ASHRAE/IESNA Standard 90.1–2019. A 

read-only version of Standard 90.1–2019 

can be found at the link ‘‘Standard 90.1– 

2019, Energy Standard for Buildings 

Except Low-Rise Residential Buildings.’’ 

(5) Whole Building Design Guide

(WBDG)—National Institute of Building

Sciences

www.wbdg.org 

www.wbdg.org/design-objectives/ 

sustainable/optimize-energy-use 

The WBDG is a web-based portal 

providing government and industry 

practitioners with one-stop access to upto-date information on a wide range of 

building-related guidance, criteria, and 

technology from a ‘‘whole buildings’’ 

perspective. Currently, WBDG is 

organized into three major categories— 

design guidance, project management, 

and operations & maintenance. 

Development of the WBDG is a 

collaborative effort among Federal 

agencies, private sector companies, nonprofit organizations, and educational 

institutions. 

(6) International Institute for

Sustainable Laboratories (I2SL)

www.i2sl.org/resources/toolkit.html 


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Laboratory Benchmarking Tool 

https://lbt.i2sl.org/ 

This website focuses on improving 

the energy efficiency and environmental 

performance of laboratory space. The 

website includes training, educational 

resources, and design and 

benchmarking tools focused on 

laboratories. 

(7) Sustainable Facilities Tool—GSA 

Office of Federal High-Performance 

Buildings 

https://sftool.gov/ www.gsa.gov/aboutus/organization/office-ofgovernmentwide-policy/office-offederal-highperformance-buildings 

The GSA is tasked with putting our 

nation’s public servants into efficient, 

healthy buildings and buying goods and 

services that provide maximum value to 

the taxpayer. The Sustainable Facilities 

Tool (SFTool) was created by the GSA 

Office of Federal High-Performance 

Green Buildings to connect Federal 

planners with new sustainability 

solutions and to assist the GSA in 

realizing healthier, more efficient 

workplaces. SFTool is an interactive 

website designed to show the user how 

to build, buy, and operate green 

property. Project managers can derive 

the most value from the SFTool by using 

it to understand Federal sustainability 

requirements; build effective project 

delivery teams and inform project 

planning; educate partners and 

stakeholders on the benefits of 

considering sustainable solutions; and 

discover high-performance, green 

building options and products. 

(8) ASHRAE Advanced Energy Design 

Guide (AEDG) Series 

www.ashrae.org/technical-resources/ 

aedgs 

To promote building energy 

efficiency, ASHRAE and its partners are 

making the AEDGs available for free 

download. The zero-energy guides offer 

designers and contractors the tools 

needed for achieving zero energy 

buildings. The 50 percent guides offer 

designers and contractors the tools 

needed for achieving a 50 percent 

energy savings compared to buildings 

that meet the minimum requirements of 

Standard 90.1–2004, and the 30 percent 

guides offer a 30 percent energy savings 

compared to buildings that meet the 

minimum energy requirements of 

Standard 90.1–1999. ASHRAE, in 

collaboration with the American 

Institute of Architects (AIA), IES, U.S. 

Green Building Council (USGBC), and 

DOE, continues to develop the AEDG 

series. 

(9) ASHRAE Standard 90.1 Performance 

Based Compliance (Section 11 and 

Appendix G) 

www.energycodes.gov/performance_

based_compliance#tools 

The website for DOE’s Building 

Energy Codes Program (BECP) provides 

further information and tools to assist 

with the performance rating method, 

including the following: 

• Spreadsheet-based compliance 

forms that meet the documentation 

requirements of ASHRAE Standard 

90.1–2019 section 11 and Appendix G, 

• The ASHRAE Standard 90.1 section 

11 and Appendix G Submittal Review 

Manual (the Manual), a comprehensive 

reference for reviewing modeling-based 

submittals, and 

• The 2010 and 2016 Performance 

Rating Method Reference Manuals, 

which include procedure and process 

descriptions to help provide consistency 

and accuracy to users of the 

Performance Rating Method. 

VII. Regulatory Analysis 

A. Review Under Executive Order 

12866, ‘‘Regulatory Planning and 

Review’’ 

This final rule is an ‘‘economically 

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 in the Office of Management and 

Budget (OMB). OMB has completed its 

review. 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. 

As discussed previously in this final 

rule, DOE is required to determine, 

based on cost-effectiveness, whether the 

standards for Federal buildings should 

be updated to reflect an amendment to 

the ASHRAE Standard. As stated 

previously, DOE complied with the 

statutory language by analyzing the costeffectiveness of ASHRAE Standard 

90.1–2019, which included, through 

DOE’s involvement in the ASHRAE 

code development process, 

consideration of ASHRAE’s costeffectiveness criteria for Standard 90.1– 

2019. 

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 ASHRAE 

Standard 90.1–2019 and a building 

designed to meet ASHRAE Standard 

90.1–2013) for the Federal commercial 

and high-rise multi-family residential 

buildings sector, as well as LCC net 

savings. First, DOE estimated that the 

annual full fuel cycle national energy 

savings would be 0.273 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 

0.12 quadrillion Btu, and that the 

cumulative (including building lifetime 

savings) full fuel cycle national energy 

savings would be 0.23 quadrillion Btu 

(see Table VII.1, Table VII.2, and Table 

VII.3). Based on these energy savings 

and using the methodology described in 

section IV, DOE estimated the resulting 

incremental first cost, first year energy 

cost savings, and annual LCC net 

savings. DOE determined that the total 

incremental first cost estimate is a 

savings of $32.67 million per year, with 

an average first cost decrease of $1.67 

per square foot. DOE determined that 

the total first year energy cost estimate 

is a savings of $3.4 million, with an 

average first year energy cost savings of 

$0.17 per square foot. DOE estimated 

$161.9 million in annual LCC net 

savings for the entire Federal 

commercial and multi-family high-rise 

buildings sector with an average LCC 

net savings of $8.29 per square foot. (See 

Table VII.4). 

Table VII.5 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 

¥$0.41 billion in increased equipment 

costs, while the estimated benefits are 

$0.65 billion in reduced equipment 

operating costs, $0.38 billion in climate 

benefits, and $0.22 billion in health 

benefits. In this case, the net monetized 

benefit amounts to $1.66 billion. Using 

a 3-percent discount rate for all 

monetized benefits and costs, the 

estimated cost of this rulemaking is 

¥$0.64 billion in increased equipment 

costs, while the estimated benefits are 

$1.86 billion in reduced equipment 

operating costs, $0.38 billion in climate 

benefits, and $0.60 billion in health 

benefits. In this case, the net monetized 

benefit amounts to $3.48 billion. 

Table VII.6 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 


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estimated cost of this rulemaking is 

¥$32.7 million per year in increased 

equipment costs, while the estimated 

annual benefits are $52.5 million in 

reduced equipment operating costs, 

$19.1 million in climate benefits, and 

$18.1 million in health benefits. In this 

case, the net monetized benefit amounts 

to $122.4 million per year. Using a 3- 

percent discount rate for all monetized 

benefits and costs, the estimated cost of 

this rulemaking is ¥$32.7 million per 

year in increased equipment costs, 

while the estimated annual benefits are 

$94.9 million in reduced equipment 

operating costs, $19.1 million in climate 

benefits, and $30.7 million in health 

benefits. In this case, the net monetized 

benefit amounts to $177.5 million per 

year. 

TABLE VII.1—ANNUAL ENERGY SAVINGS FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE STANDARD 90.1–2013 

Category 

Results—ASHRAE 

90.1–2019 compared to 

ASHRAE 90.1–2013 

baseline 

(TBtu) 

Annual Site National Energy Savings (Trillion Btu) ............................................................................................................. 0.106 

Annual Source National Energy Savings (Trillion Btu) ....................................................................................................... 0.261 

Annual Full Fuel Cycle National Energy Savings (Trillion Btu) ........................................................................................... 0.273 

TABLE VII.2—CUMULATIVE ENERGY SAVINGS FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE STANDARD 90.1–2013 

[30-year analysis period] 

Category 

Results—ASHRAE 

90.1–2019 compared to 

ASHRAE 90.1–2013 

baseline 

(quads) 

Cumulative Site National Energy Savings (quads) ............................................................................................................. 0.049 

Cumulative Source National Energy Savings (quads) ........................................................................................................ 0.115 

Cumulative Full Fuel Cycle National Energy Savings (quads) ........................................................................................... 0.120 

TABLE VII.3—CUMULATIVE LIFETIME ENERGY SAVINGS FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE STANDARD

90.1–2013 

[2022–2051 plus 30-year lifetime] 

Category 

Results—ASHRAE 

90.1–2019 compared to 

ASHRAE 90.1–2013 

baseline 

(quads) 

Cumulative Lifetime Site National Energy Savings (quads) ............................................................................................... 0.095 

Cumulative Lifetime Source National Energy Savings (quads) .......................................................................................... 0.223 

Cumulative Lifetime Full Fuel Cycle National Energy Savings (quads) ............................................................................. 0.232 

TABLE VII.4—COST-EFFECTIVENESS RESULTS FOR ASHRAE STANDARD 90.1–2019 VS. ASHRAE STANDARD 90.1–2013 

[2020$] 

Category 

Results—ASHRAE 90.1– 

2019 compared to 

ASHRAE 90.1–2013 

baseline 

Average LCC Net Savings (2020$) .................................................................................................................................... $8.29/ft 2. 

Annual LCC Net Savings (2020$) ...................................................................................................................................... $161.9 million. 

First Year Energy Cost Savings (2020$) ............................................................................................................................ $0.17/ft 2. 

Total First Year Energy Cost Savings (2020$) ................................................................................................................... $3.4 million. 

Incremental First Cost (2020$) ........................................................................................................................................... ¥$1.67/ft 2. 

Total Incremental First Cost (2020$) .................................................................................................................................. ¥$32.7 million. 

TABLE VII.5—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS

[Billion 2020$] 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

3% discount rate 

Consumer Operating Cost Savings ..................................................................................................................................... 1.86 


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TABLE VII.5—SUMMARY OF MONETIZED ECONOMIC BENEFITS AND COSTS—Continued 

[Billion 2020$] 

[2022–2051 plus 30-year lifetime] 

Billion $2020 

Climate Benefits * ................................................................................................................................................................. 0.38 

Health Benefits ** ................................................................................................................................................................. 0.60 

Total Benefits † ............................................................................................................................................................. 2.84 

Consumer Incremental Product Costs †† ............................................................................................................................ ¥0.64 

Net Benefits .................................................................................................................................................................. 3.48 

7% discount rate 

Consumer Operating Cost Savings.

Consumer Operating Cost Savings ..................................................................................................................................... 0.65 

Climate Benefits * ................................................................................................................................................................. 0.38 

Health Benefits ** ................................................................................................................................................................. 0.22 

Total Benefits † ............................................................................................................................................................. 1.25 

Consumer Incremental Product Costs †† ............................................................................................................................ ¥0.41 

Net Benefits .................................................................................................................................................................. 1.66 

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. 

TABLE VII.6—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 ......................................................................................... 94.9 52.5 

Climate Benefits * ..................................................................................................................... 19.1 19.1 

Health Benefits ** ..................................................................................................................... 30.7 18.1 

Total Benefits † ................................................................................................................. 144.8 89.7 

Costs †† ................................................................................................................................... ¥32.7 ¥32.7 

Net Benefits ...................................................................................................................... 177.5 122.4 

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. 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20291 

38The EA and FONSI may be found in the docket 

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

doeea-2165-energy-efficiency-standards-newfederal-commercial-and-multi-family-high-rise. 

† 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)) Additionally, DOE 

notes that the determinations regarding 

the increase in energy efficiency for 

commercial buildings using ASHRAE 

Standard 90.1–2016 and 90.1–2019 in 

the context of State building codes were 

subject to notice and comment. See 82 

FR 34513 (July 25, 2017) for the 

preliminary determination and 83 FR 

8463 (February 27, 2018) for the final 

determination on Standard 90.1–2016. 

See 86 FR 20674 (April 21, 2021) for the 

preliminary determination and 86 FR 

40543 (July 28, 2021) for the final 

determination on Standard 90.1–2019. 

The determinations made in the context 

of the State codes are equally applicable 

in the context of Federal buildings. DOE 

finds that providing notice and 

comment again in the context of Federal 

buildings would therefore be 

unnecessary. (See 5 U.S.C. 553(b)(B)) 

The fact that the voluntary consensus 

codes apply to Federal buildings as 

opposed to the general building stock 

does not require a different evaluation 

of energy efficiency and costeffectiveness. 

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 previously, 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.) 

E. Review Under the National 

Environmental Policy Act of 1969 

DOE prepared an EA (DOE/EA– 

20165) entitled, ‘‘Environmental 

Assessment for Final Rule, 10 CFR part 

433, ‘Baseline Energy Efficiency 

Standards Update for New Federal 

Commercial and Multi-Family HighRise Residential Buildings’ ’’,38 pursuant 

to the Council on Environmental 

Quality’s (CEQ’s) 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 burning for energy use 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 commercial buildings, DOE 

compared the requirements of the final 

rule updating energy efficiency 

performance standard for Federal new 

commercial and multi-family high rise 

residential buildings to ASHRAE 

Standard 90.1–2019 with the ‘‘no-action 

alternative’’ of using the current Federal 

standards (ASHRAE Standard 90.1– 

2013). 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 Standard 90.1–2019 

will use less energy than new Federal 

buildings designed and constructed to 

Standard 90.1–2013 because Standard 

90.1–2019 is more efficient than 

Standard 90.1–2013. This decrease in 

energy usage translates to reduced 

emissions of carbon dioxide (CO2), 

nitrogen oxides (NOX), mercury (Hg), 

and methane (CH4) over the 30-year 

period examined in the EA. As reported 

in the EA, cumulative emission 

reductions for 30 years of construction 

and operation for Federal buildings 

built during the analysis period (2022 

through 2051) were estimated at up to 

4.5 million metric tons of CO2, up to 6.9 

thousand tons of NOX, up to 0.01 tons 

of Hg, up to 33.5 thousand tons of CH4, 

up to 1.6 thousand tons of SO2, and up 

to 0.04 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 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 8.4 

million metric tons of CO2, up to 13.1 

thousand tons of NOX, up to 0.02 tons 

of Hg, up to 64.5 thousand tons of CH4, 

up to 3.0 thousand tons of SO2, and up 

to 0.08 thousand tons of N2O. 


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20292 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

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. (See 

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 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 and the private sector. For 

a proposed regulatory action likely to 

result in a rule that may cause the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector of $100 million or more 

in any one year (adjusted annually for 

inflation), section 202 of UMRA requires 

a Federal agency to publish a written 

statement that estimates the resulting 

costs, benefits, and other effects on the 

national economy. (2 U.S.C. 1532(a) and 

(b)) The UMRA also requires a Federal 

agency to develop an effective process 

to permit timely input by elected 

officers of State, local, and tribal 

governments on a proposed ‘‘significant 

intergovernmental mandate’’ and 

requires an agency plan for giving notice 

and opportunity for timely input to 

potentially affected small governments 

before establishing any requirements 

that might significantly or uniquely 

affect small governments. On March 18, 

1997, DOE published a statement of 

policy on its process for 

intergovernmental consultation under 

UMRA. 62 FR 12820. DOE’s policy 

statement is also available at https://

energy.gov/sites/prod/files/gcprod/ 

documents/umra_97.pdf. 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 which 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). Pursuant to 

OMB Memorandum M–19–15, 

Improving Implementation of the 

Information Quality Act (April 24, 

2019), DOE published updated 

guidelines which are available at 

www.energy.gov/sites/prod/files/2019/ 

12/f70/DOE%20Final%20Updated%20

IQA%20Guidelines%20

Dec%202019.pdf. 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 the Office of 

Information and Regulatory Affairs 

(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 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20293 

39See Table A5 of the 2021 Annual Energy 

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

5.xlsx. 

40See Regulatory Analysis Section A. Review 

Under Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ above for origin of the 25.85 

million square foot estimate. 

(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 EIA estimates that new 

construction in the commercial sector 

will range from 1.91 billion square feet 

per year in 2022 to 2.52 billion square 

feet per year in 2050.39 This rule is 

expected to incrementally reduce the 

energy usage of approximately 19.54 

million square feet of Federal 

commercial and high-rise multi-family 

residential construction annually.40

Thus, the rule represents approximately 

1.17 percent of the expected annual U.S. 

commercial construction in 2022, falling 

to approximately 0.89 percent in the 

year 2050. 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 Department 

of Energy 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 final rule 

must inform the public of the use and 

background of such standards. In 

addition, section 32(c) requires DOE to 

consult with the U.S. 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: ANSI/ASHRAE/IES Standard 

90.1–2019, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, 2019, American Society of 

Heating Refrigerating and AirConditioning Engineers, Inc., ISSN 

1041–2336. 

DOE has evaluated these standards 

and notes that ASHRAE Standard 90.1 

Standard is developed under ANSIapproved consensus procedures and is 

under continuous maintenance by a 

Standing Standard Project Committee. 

ASHRAE has established a program for 

regular publication of addenda, or 

revisions, including procedures for 

timely, documented, consensus action 

on requested changes to ASHRAE 

Standard 90.1. ANSI approved the final 

addendum for inclusion in the 2016 

edition in August 2016 and in the 2019 

edition in October 2019. Standard 90.1– 

2016 was published in October 2016 

and Standard 90.1–2019 was published 

in October 2019. However, DOE is 

unable to conclude whether ASHRAE 

Standard 90.1 fully complies with the 

requirements of section 32(b) of the 

Federal Energy Administration Act 

(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 ANSI/ASHRAE/IES Standard 

90.1–2019, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, (I–P Edition), 2019. This 

standard provides minimum 

requirements for energy efficient 

designs for buildings except for low-rise 

residential buildings. Copies of this 

standard are available from ASHRAE, 

Inc., 180 Technology Parkway NW, 

Peachtree Corners, GA 30092, (404) 

636–8400, www.ashrae.org. ASHRAE 

provides a free, online, read-only 

version of Standard 90.1–2019 available 

at www.ashrae.org/technical-resources/ 

standards-and-guidelines. Users must 

scroll down to locate and click on 

Standard 90.1–2019 (IP). 

The Director of the Federal Register 

previously approved ANSI/ASHRAE/ 

IES 90.1–2004, 2007, 2010, and 2013, 

Energy Standard for Buildings Except 

Low-Rise Residential Buildings for 

incorporation by reference in 10 CFR 

part 433. 

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 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 433 

Buildings and facilities, Energy 

conservation, Engineers, 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 

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 29, 

2022. 

Treena V. Garrett, 

Federal Register Liaison Officer, U.S. 

Department of Energy. 

For the reasons set forth in the 

preamble, DOE amends chapter II 

Subchapter D of title 10 of the Code of 

Federal Regulations as set forth below: 

PART 433—ENERGY EFFICIENCY 

STANDARDS FOR DESIGN AND 

CONSTRUCTION OF NEW FEDERAL 

COMMERCIAL AND MULTI FAMILY 

HIGH RISE RESIDENTIAL BUILDINGS 

■ 1. The authority citation for part 433 

continues to read as follows: 

Authority: 42 U.S.C. 6831–6832; 6834– 

6835; 42 U.S.C. 7101 et seq. 

■ 2. Amend § 433.2 by: 

■ a. In the definition of ‘‘ASHRAE 

Baseline Building 2004’’, removing the 

text ‘‘ANSI/ASHRAE/IES Standard 

90.1–2004, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, January 2004’’ and adding, in 


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20294 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 

its place, the text, ‘‘ASHRAE 90.1– 

2004’’; 

■ b. In the definition of ‘‘ASHRAE 

Baseline Building 2007’’, removing the 

text ‘‘ANSI/ASHRAE/IES Standard 

90.1–2007, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, December 2007’’ and adding, 

in its place, the text, ‘‘ASHRAE 90.1– 

2007’’; 

■ c. In the definition of ‘‘ASHRAE 

Baseline Building 2010’’, removing the 

text ‘‘ANSI/ASHRAE/IES Standard 

90.1–2010, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, 2010’’ and adding, in its 

place, the text, ‘‘ASHRAE 90.1–2010’’; 

■ d. In the definition of ‘‘ASHRAE 

Baseline Building 2013’’, removing the 

text ‘‘ANSI/ASHRAE/IES Standard 

90.1–2013, Energy Standard for 

Buildings Except Low-Rise Residential 

Buildings, 2013’’ and adding, in its 

place, the text, ‘‘ASHRAE 90.1–2013’’; 

■ e. Adding in alphabetical order the 

definition of ‘‘ASHRAE Baseline 

Building 2019’’; and 

■ f. Revising the definition of ‘‘New 

Federal building’’. 

The addition and revision read as 

follows: 

§ 433.2 Definitions. 

* * * * * 

ASHRAE Baseline Building 2019 

means a building that is otherwise 

identical to the proposed building but is 

designed to meet, but not exceed, the 

energy efficiency specifications in 

ASHRAE 90.1–2019 (incorporated by 

reference, see § 433.3). 

* * * * * 

New Federal building means any new 

building (including a complete 

replacement of an existing building 

from the foundation up) to be 

constructed by, or for the use of, any 

Federal agency. Such term shall include 

new buildings (including a complete 

replacement of an existing building 

from the foundation up) built for the 

purpose of being leased by a Federal 

agency, and privatized military housing. 

* * * * * 

■ 3. Amend § 433.3 by: 

■ a. Revising paragraph (a) and the 

introductory text of paragraph (b); and 

■ b. Adding paragraph (b)(5). 

The revision and addition read as 

follows: 

§ 433.3 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) ASHRAE. American Society of 

Heating Refrigerating and AirConditioning Engineers, Inc., 180 

Technology Parkway NW, Peachtree 

Corners, GA 30092; (404) 636–8400; 

www.ashrae.org. 

* * * * * 

(5) ANSI/ASHRAE/IES 90.1–2019, 

(‘‘ASHRAE 90.1–2019’’), Energy 

Standard for Buildings Except Low-Rise 

Residential Buildings, I–P Edition, 

copyright 2019, IBR approved for 

§§ 433.2, 433.100 and 433.101. 

■ 4. Amend § 433.100 by: 

■ a. Revising paragraph (a)(4) and 

adding paragraph (a)(5); 

■ b. Removing paragraph (b); 

■ c. Redesignating paragraph (c) as (b); 

and 

■ d. Revising newly redesignated 

paragraph (b). 

The revisions and addition read as 

follows: 

§ 433.100 Energy efficiency performance 

standard. 

(a) * * * 

(4) All Federal agencies shall design 

new Federal buildings that are 

commercial and multi-family high-rise 

residential buildings, for which design 

for construction began on or after 

November 6, 2016, but before April 7, 

2023, to: 

(i) Meet ASHRAE 90.1–2013, 

(incorporated by reference, see § 433.3); 

and 

(ii) If LCC effective, achieve energy 

consumption levels, calculated 

consistent with paragraph (b) of this 

section, that are at least 30 percent 

below the levels of the ASHRAE 

Baseline Building 2013. 

(5) All Federal agencies shall design 

new Federal buildings that are 

commercial and multi-family high-rise 

residential buildings, for which design 

for construction began on or after April 

7, 2023, to: 

(i) Meet ASHRAE 90.1–2019, 

(incorporated by reference, see § 433.3); 

and 

(ii) If LCC effective, achieve energy 

consumption levels, calculated 

consistent with paragraph (b) of this 

section, that are at least 30 percent 

below the levels of the ASHRAE 

Baseline Building 2019. 

(b) If a 30 percent reduction is not 

LCC effective, the design of the 

proposed building shall be modified so 

as to achieve an energy consumption 

level at or better than the maximum 

level of energy efficiency that is LCC 

effective, but at a minimum complies 

with paragraph (a) of this section. 

■ 5. Amend § 433.101 by: 

■ a. Revising paragraph (a)(4) and 

adding paragraph (a)(5); and 

■ b. Revising paragraph (b). 

The revisions and addition read as 

follows: 

§ 433.101 Performance level 

determination. 

(a) * * * 

(4) For Federal buildings for which 

design for construction began on or after 

November 6, 2016, but before April 7, 

2023, each Federal agency shall 

determine energy consumption levels 

for both the ASHRAE Baseline Building 

2013 and proposed building by using 

the Performance Rating Method found 

in Appendix G of ASHRAE 90.1–2013 

(incorporated by reference, see § 433.3), 

except the formula for calculating the 

Performance Rating in Section G1.2 

shall read as follows: 

(i) Percentage improvement = 100 × 

((Baseline building 

consumption¥Receptacle and process 

loads)¥(Proposed building 

consumption¥Receptacle and process 

loads))/(Baseline building 

consumption¥Receptacle and process 

loads) (which simplifies as follows): 

(ii) Percentage improvement = 100 × 

(Baseline building 

consumption¥Proposed building 

consumption)/(Baseline building 

consumption¥Receptacle and process 

loads). 

(5) For Federal buildings for which 

design for construction began on or after 

April 7, 2023, each Federal agency shall 

determine energy consumption levels 

for both the ASHRAE Baseline Building 

2019 and proposed building by using 

the Performance Rating Method found 

in Appendix G of ASHRAE 90.1–2019 

(incorporated by reference, see § 433.3). 

The formula for determining the 

percentage improvement shall be as 

follows: 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Rules and Regulations 20295 

Percentage Improvement = 100 × 

(1¥PCI/PCIt) 

Where 

PCI = Performance Cost Index calculated in 

accordance with Section G1.2 of 

ASHRAE Standard 90.1–2019 

PCIt = Performance Cost Index Target 

calculated by formula in Section 4.2.1.1 

of ASHRAE Standard 90.1–2019 

(b) Energy consumption for the 

purposes of calculating the 30 percent 

savings requirements shall include the 

building envelope and energy 

consuming systems normally specified 

as part of the building design by 

ASHRAE Standard 90.1 such as space 

heating, space cooling, ventilation, 

service water heating, and lighting, and 

all process and receptacle loads, except 

for energy-intensive process loads that 

are driven by mission and operational 

requirements, not necessarily buildings, 

and not influenced by conventional 

building energy conservation measures. 

[FR Doc. 2022–06949 Filed 4–6–22; 8:45 am] 

BILLING CODE 6450–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2021–0596; Airspace 

Docket No. 20–AGL–15] 

RIN 2120–AA66 

Amendment of V–6, V–10, V–30, V–100, 

and V–233 in the Vicinity of Litchfield, 

MI 

AGENCY: Federal Aviation 

Administration (FAA) DOT. 

ACTION: Final rule; withdrawal. 

SUMMARY: This action withdraws the 

final rule published in the Federal 

Register on March 21, 2022, amending 

VHF Omnidirectional Range (VOR) 

Federal airways V–6, V–10, V–30, V– 

100, and V–233 in the vicinity of 

Litchfield, MI, due to the planned 

decommissioning of the VOR portion of 

the Litchfield, MI, VOR/Distance 

Measuring Equipment (VOR/DME) 

navigational aid. Unanticipated issues 

affecting the completion of related VOR 

Minimum Operational Network (MON) 

Program instrument procedure 

amendments and the associated flight 

inspection activities required to adopt 

those amendments have made this 

withdrawal action necessary. 

DATES: As of April 7, 2022, the final rule 

published on March 21, 2022 (87 FR 

15879) is withdrawn. 

FOR FURTHER INFORMATION CONTACT: 

Colby Abbott, Rules and Regulations 

Group, Office of Policy, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

History 

The FAA published a final rule in the 

Federal Register for Docket No. FAA– 

2021–0596 (87 FR 15879; March 21, 

2022) amending VOR Federal airways 

V–6, V–10, V–30, V–100, and V–233 

due to the planned decommissioning of 

the VOR portion of the Litchfield, MI, 

VOR/DME. The effective date of that 

rule is May 19, 2022. Subsequent to the 

final rule, unanticipated requirements 

and issues affecting the completion of 

related instrument procedure 

amendments and the associated flight 

inspection activities required to adopt 

those amendments by the published 

effective date have been identified. As a 

result, the planned Litchfield, MI, VOR 

decommissioning has been slipped to 

April 20, 2023. 

FAA’s Conclusions 

The FAA has reviewed the Litchfield, 

MI, VOR decommissioning project and 

determined additional time is required 

to complete the related instrument 

procedure amendments and associated 

flight inspection activities to ensure an 

efficient implementation and integration 

with other ongoing VOR MON program 

actions. Therefore, the final rule is being 

withdrawn. 

The existing VOR Federal airways (V– 

6, V–10, V–30, V–100, and V–233) 

addressed in the final rule remain 

unchanged. 

The FAA will publish a new notice of 

proposed rulemaking action at a later 

date, using a new airspace docket 

number, to coincide with the slipped 

Litchfield, MI, VOR decommissioning 

now planned for April 20, 2023. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Withdrawal 

■ Accordingly, pursuant to the authority 

delegated to me, the final rule published 

in the Federal Register on March 21, 

2022 (87 FR 15879), FR Doc. 2022– 

05546, is hereby withdrawn. 

Authority: 49 U.S.C. 106(f), 106(g), 40103, 

40113, 40120; E.O. 10854; 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

Issued in Washington, DC, on March 31, 

2022. 

Scott M. Rosenbloom, 

Manager, Airspace Rules and Regulations. 

[FR Doc. 2022–07206 Filed 4–6–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 220331–0082] 

RIN 0694–AI67 

Additions of Entities to the Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In response to the Russian 

Federation’s (Russia’s) further invasion 

of Ukraine on February 24, 2022, the 

Department of Commerce is amending 

the Export Administration Regulations 

(EAR) by adding 120 entities under 120 

entries to the Entity List. These 120 

entities have been determined by the 

U.S. Government to be acting contrary 

to the national security interests or 

foreign policy of the United States and 

will be listed on the Entity List under 

the destinations of Belarus and Russia. 

DATES: This rule is effective April 1, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

Chair, End-User Review Committee, 

Office of the Assistant Secretary for 

Export Administration, Bureau of 

Industry and Security, Department of 

Commerce, Phone: (202) 482–5991, 

Email: ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List (supplement no. 4 to 

part 744 of the Export Administration 

Regulations (EAR)) identifies entities for 

which there is reasonable cause to 

believe, based on specific and 

articulable facts, that the entities have 

been involved, are involved, or pose a 

significant risk of being or becoming 

involved in activities contrary to the 

national security or foreign policy 

interests of the United States. The EAR 

(15 CFR parts 730–774) imposes 

additional license requirements on, and 

limit the availability of most license 

exceptions for exports, reexports, and 

transfers (in-country) to listed entities. 

The license review policy for each listed 

entity is identified in the ‘‘License 

Review Policy’’ column on the Entity 

List, and the impact on the availability 

of license exceptions is described in the 

relevant Federal Register document that 

added the entity to the Entity List. The 

Bureau of Industry and Security (BIS) 

places entities on the Entity List 

pursuant to part 744 (Control Policy: 

End-User and End-Use Based) and part 

746 (Embargoes and Other Special 

Controls) of the EAR. Paragraphs (b)(1) 


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