32958 Federal Register / Vol. 63, No. 115 /Tuesday, June 16, 1998 / Proposed Rules

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

24 CFR Part 200

[Docket No. FR–4272–P–01]

RIN 2502–AH03

HUD Minimum Property Standard—

Adoption of the 1995 Model Energy

Code

AGENCY: Office of the Assistant

Secretary for Housing-Federal Housing

Commissioner, HUD.

ACTION: Proposed rule.

SUMMARY: This proposed rule would

amend the Minimum Property

Standards (MPS) in 24 CFR part 200,

subpart S, by referencing the latest

edition of the Model Energy Code

(MEC): the 1995 edition. The 1992 MEC

edition presently cited in the MPS

regulations and incorporated in

Handbook, 4910.1 would be replaced.

These proposed changes are necessary

to keep the MPS current and to help

protect the Department’s insurance

fund. In addition, the proposed changes

are consistent with legislation and OMB

Circular A–119, which require Federal

agencies to use national voluntary

consensus standards, when practical, in

lieu of developing an agency standard.

In order to determine the

appropriateness of these proposed

changes, HUD asked Pacific Northwest

National Laboratory (PNNL) to perform

a detailed analysis of the 1995 MEC.

PNNL determined that the use of the

1995 MEC will achieve a significant

increase in energy savings, and that it is

technologically feasible, and

economically justified.

DATES: Comment due date: August 17,

1998.

ADDRESSES: Interested persons are

invited to submit comments regarding

this rule to the Rules Docket Clerk,

Office of the General Counsel, Room

10276, Department of Housing & Urban

Development, 451 Seventh Street, S.W.,

Washington, D.C. 20410–8000.

Communications should refer to the

above docket number and title. A copy

of each communication submitted will

be available for public inspection and

copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FAXED comments will not be accepted.

FOR FURTHER INFORMATION CONTACT:

David R. Williamson, Director, Office of

Consumer and Regulatory Affairs,

Department of Housing and Urban

Development, 451 Seventh Street S.W.,

Room 9156, Washington, D.C. 20410–

8000; telephone: voice, (202) 708–6423;

TTY, (202) 708–4594 (these are not toll

free numbers.)

SUPPLEMENTARY INFORMATION:

Background

The National Housing Act, 12 U.S.C.

1702 et seq., authorizes the Secretary of

Housing and Urban Development

(Secretary) to prescribe standards for

determining the acceptability of oneand two-family residential structures,

multifamily residential structures, and

care-type facilities (nursing home,

intermediate care facility, combined

nursing home and intermediate care

facility, board and care home, hospital

or group practice facility). (See e.g., 12

U.S.C. 1715l(f).) Some general statutory

guidelines govern the nature of these

standards. For example, the standards

are ‘‘to establish the acceptability of

* * * property for mortgage insurance

* * *.’’ (12 U.S.C. 1715l(f)). In addition,

the standards must be consistent with

the declared national housing policy of

realizing ‘‘the goal of a decent and

suitable living environment for every

American family * * *.’’ (42 U.S.C.

1441). The Minimum Property

Standards (MPS) requirements in 24

CFR part 200, subpart S, are also

published in HUD Handbook 4910.1, as

provided in § 200.929(b)(2) of the MPS.

Any changes made in the MPS by this

rule will, accordingly, be reflected in

the referenced handbook.

The current MPS are consistent with

the National Technology Transfer and

Advancement Act of 1995 (Pub. L. 104–

113, 110 Stat. 783, approved March 7,

1996) and OMB Circular A–119. This

statute and circular establish a Federal

policy that, whenever feasible, model

codes and standards developed by

private organizations should be adopted

by the U.S. Government when their use

will eliminate the necessity for separate

Federal agency standards covering the

same technical issues.

Section 526(a) of the National

Housing Act requires the Secretary to

‘‘promote the use of energy saving

techniques through the minimum

property standards’’ and assure that the

MPS are ‘‘at least as effective in

performance as the energy performance

requirements incorporated in the

minimum property standards that were

in effect under this subsection on

September 30, 1982.’’

This requirement was supported and

extended in section 101 of the Energy

Policy Act of 1992 (Pub. L. 102–486,

Oct. 24, 1992), which amended section

109 of the Cranston-Gonzalez National

Affordable Housing Act (42 U.S.C.

12709). This provision covers public

and assisted housing, and single family

and multifamily residential housing

(other than manufactured housing)

subject to mortgages insured under the

National Housing Act. HUD

implemented the requirement of Section

101 by amending the Minimum

Property Standards (MPS) for Housing

(See 24 CFR 200.925; 24 CFR 200.926e)

to reference the provisions of the 1992

Model Energy Code (MEC). (See FR Vol.

58, No. 218, November 15, 1993)

Also under section 109 of the

Cranston-Gonzalez National

Affordability Housing Act, ‘‘If the

requirements of 1992 Model Energy

Code or, in the case of multifamily high

rises, ASHRAE [American Society of

Heating, Refrigerating and Air

Conditioning Engineers] Standard 90.1–

1989, are revised at any time, the

Secretaries (of HUD and Agriculture)

shall, not later than 1 year after such

revision, amend the standards

established under subsection (a) to meet

or exceed the requirements of such

revised code or standard unless the

Secretaries determine that compliance

with such revised code or standard

would not result in a significant

increase in energy efficiency or would

not be technologically feasible or

economically justified.’’ This proposed

rule has been prepared as expeditiously

as possible following receipt of the

PNNL analysis.

The Model Energy Code 1995

establishes minimum requirements for

energy-related features of new buildings

and additions to existing buildings. It

covers low-rise buildings, three stories

or less, as well as one- and two-family

buildings. It also includes high-rise

buildings, four stories or more, and

applies to any additions to existing

buildings. Since the Minimum Property

Standards only apply to new structures

and do not include additions, sections

of the MEC that deal with additions

were deleted from adoption by the MPS.

Further, the MEC sections dealing with

mixed occupancy and change of

occupancy are deleted from adoption by

the MPS because the MPS apply only to

multifamily buildings, caretype

occupancy, and one- and two-family

dwellings.

The MEC is applicable to all types of

residential and non-residential

buildings. It is not applicable to historic

structures (specifically designated as

historically significant by the State or

local governing body, or listed in the

National Register of Historic Places, or

which have been determined to be

eligible for listing). Nor does it apply to

manufactured homes regulated by the

Federal Manufactured Home

Construction and Safety Standards.

HUD has other energy standards for

manufactured housing.
Federal Register / Vol. 63, No. 115 /Tuesday, June 16, 1998 / Proposed Rules 32959

The MEC emphasizes flexibility to

suit local needs and conditions by

offering a number of means for

achieving compliance. MEC compliance

can be demonstrated based on using the

building envelope specifications for

insulation/windows (thermal

transmittance). Compliance can also be

demonstrated with the building

envelope which has an overall thermal

transmittance equal to or better than

specified in the MEC. The MEC allows

compliance to be demonstrated by

showing the estimated energy use of a

residence is less than or equal to the

energy use resulting from a building

which meets the explicit requirements

of the MEC. In addition, the MEC allows

compliance of residences whose

estimated energy costs are less than or

equal to the energy costs resulting from

the same house if it was built to the

MEC specifications.

To assure that the 1995 MEC

standards meet legislative requirements,

HUD contracted with Pacific Northwest

National Laboratory (PNNL), a

Department of Energy national

laboratory, to review and analyze the

technical aspects of these standards.

Their report, entitled ‘‘Assessment of

the 1995 Model Energy Code for

Adoption’’ March 1997, analyzed this

matter and has determined that there is

a significant increase in energy savings,

that it is technologically feasible, and

economically justified. PNNL performed

a detailed cost/benefit analysis in

accordance with established analytical

methods. Their analysis added the

discounted cost and benefits of an

energy investment which are based on

existing and forecasted economic

parameters. Some of these parameters

include: interest rates, loan term,

inflation rate, alternative investments,

loan fees and state taxes. Present and

projected escalation fuel costs are also

used.

This report concluded that the present

value of estimated savings to each new

home buyer is approximately $700, for

an additional up-front cost of

approximately $300. This is based on a

national average of single family and

multifamily homes. In addition, the

report detailed the specific differences

between the 1992 MEC and the 1995

MEC.

ASHRAE 90.1, which is mentioned in

section 109 of the Cranston-Gonzalez

National Affordability Housing Act and

adopted by reference in the 1995 MEC,

was also analyzed in this report. Public

and HUD-assisted multifamily high-rise

housing (buildings four stories or more)

are required to comply with ASHRAE

Standard 90.1–1989 (ASHRAEa). It

incorporated a number of addenda

adding new requirements or modifying

existing ones. This codified version of

Standard 90.1 endorsed in 1993, which

included addenda, did not increase the

requirements, or costs, from the 1992

MEC. Rather, it made the enforcement of

the code easier for building officials.

In order to simplify compliance with

the MEC, HUD has made available two

computer software programs, MECcheck

and COMcheck, which can be used to

demonstrate compliance with the

requirements. These materials were

developed by the U.S. Department of

Energy to simplify compliance with

building energy codes.

Copies of the MPS are available for

public inspection during regular

business hours in the Office of the Rules

Docket Clerk, Office of the General

Counsel, Room 10276, at the

Department of Housing and Urban

Development, Washington, DC 20410–

8000. Also, copies of the PNNL report,

‘‘Assessment of the 1995 Model Energy

Code for Adoption’’ March 1997, are

available from HUD USER, P.O. Box

6091, Rockville, MD 20849. MECcheck

is also available from HUD USER.

Incorporation by Reference

These standards have been approved

by the Director of the Federal Register

for incorporation by reference in

accordance with 5 U.S.C. 552(a) and 1

CFR 51. Copies of the standards may be

obtained from the Council of American

Building Officials, 5203 Leesburg Pike,

Suite 708, Falls Church, VA 22041.

Findings and Certifications

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 establishes

requirements for Federal agencies to

assess the effects of their regulatory

actions on State, local, and tribal

governments and the private sector.

This rule does not impose any federal

mandates on any State, local, or tribal

governments or the private sector within

the meaning of the Unfunded Mandates

Reform Act of 1995.

Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made in accordance with HUD

regulations in 24 CFR Part 50, which

implement Section 102(2)(C) of the

National Environmental Policy Act of

1969, 42 U.S.C. 4332. The Finding of No

Significant Impact is available for public

inspection and copying between 7:30

a.m. and 5:30 p.m. weekdays in the

Office of the Rules Docket Clerk, Room

10276, 451 Seventh Street, SW,

Washington, D.C. 20410.

Impact on Small Entities

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)) has reviewed and approved this

rule, and in so doing certifies that this

rule is not anticipated to have a

significant economic impact on a

substantial number of small entities.

The rule is not anticipated to have any

adverse or disproportionate economic

impact on small businesses. The rule

only proposes to adopt model energy

standards that are already nationally

recognized throughout the affected

industry. Notwithstanding this

determination, HUD specifically invites

comments regarding alternatives to this

rule that would meet HUD’s objectives

as described in this preamble.

Federalism Impact

The General Counsel has determined,

as the Designated Official for HUD

under Section 6(a) of Executive Order

12612, Federalism, that this rule does

not have federalism implications

concerning the division of local, State,

and federal responsibilities. The rule

only proposes to adopt standards that

are already nationally recognized

throughout the affected industry.

List of Subjects for 24 CFR Part 200

Administrative practice and

procedure, Claims, Equal employment

opportunity, Fair housing, Home

improvement, Housing standards,

Incorporation by reference, Lead

poisoning, Loan programs—housing and

community development, Minimum

property standards, Mortgage insurance,

Organization and functions

(Government agencies), Penalties,

Reporting and recordkeeping

requirements, Social Security,

Unemployment compensation, Wages.

Accordingly, 24 CFR part 200 would

be amended as follows:

1. The authority citation for part 200

continues to read as follows:

Authority: 12 U.S.C. 1701–1715z–18; 42

U.S.C. 3535(d).

Subpart S [Amended]

2. All references in part 200, subpart

S, to ‘‘the CABO Model Energy Code,

1992’’ are replaced with ‘‘the CABO

Model Energy Code, 1995’’.

3. Section 200.926d is amended by

revising paragraph (e) to read as follows:

§ 200.926d Construction requirements.

* * * * *

(e) Energy efficiency. All buildings

shall be constructed in compliance with

the requirements of:

(i) The CABO Model Energy Code

(MEC), 1995 Edition, except Sections
32960 Federal Register / Vol. 63, No. 115 /Tuesday, June 16, 1998 / Proposed Rules

101.4.3 (or as otherwise provided in this

paragraph), 101.4.4, 104 and 105;

(ii) Section 101.4.3.2, Historic

buildings;

(iii) The MEC Appendix; and

(iv) HUD UM 100, HUD Building

Product Standards and Certification

Program for Solar Water Heating

Systems.

(v) ASHRAE/IES 90.1–1989, including

addenda, as referenced in the MEC,

applies to all multifamily high-rise

buildings. All buildings which comply

with ASHRAE/IES 90.1–1989, Energy

Efficiency Design of New Buildings

Except Low-Rise Residential Buildings,

will use ASHRAE Standard 62–1989 or

its equivalent for specific ventilation

requirements.

§ 200.929 [Amended]

4. Section 200.929(b)(2) is amended

by substituting the date ‘‘1994’’ for the

date ‘‘1993’’ in the first sentence.

Appendix A [Amended]

5. The introductory paragraph to

Appendix A to 24 CFR part 200 is

revised to change in two places the

address for obtaining MPS and for

public inspection of the MPS to ‘‘HUD

Manufactured Housing and Standards

Division, Office of Consumer and

Regulatory Affairs, Room 9156, to 451

7th Street, SW, Washington, DC 20410’’.

In the standards referenced in the

paragraph under Council of American

Building Officials: the reference to

‘‘CABO Model Energy Code—1992

Edition’’ is replaced with ‘‘CABO Model

Energy Code—1995 Edition’’.

Dated: April 27, 1998.

Art Agnos,

Acting General Deputy, Assistant Secretary

for Housing-Deputy Federal Housing

Commissioner.

[FR Doc. 98–15849 Filed 6–15–98; 8:45 am]

BILLING CODE 4210–27–P