Construction Codes in the Northeast: Myths and Realities of Energy Code Adoption and the Economic Ef by NEEP Energy

Construction Codes in the Northeast: Myths and Realities of Energy Code Adoption and the Economic Effects July 2015

Contents Executive Summary............................................................................................................................ 1 Introduction....................................................................................................................................... 3 Why Conduct This Analysis? ............................................................................................................................ 3 Methodology................................................................................................................................................... 4 Background on Energy Codes in the Northeast and Mid-Atlantic Regions................................................ 6 Construction Trends in the Region ....................................................................................................... 9 Commercial State Analysis ................................................................................................................ 10 Connecticut ................................................................................................................................................... 10 District of Columbia........................................................................................................................................ 11 Delaware ....................................................................................................................................................... 12 Massachusetts................................................................................................................................................ 13 Maryland ....................................................................................................................................................... 14 Maine .............................................................................................................................................................15 New Hampshire............................................................................................................................................. 16 New Jersey ..................................................................................................................................................... 17 New York ...................................................................................................................................................... 18 Pennsylvania ................................................................................................................................................. 19 Rhode Island.................................................................................................................................................. 20 Vermont ........................................................................................................................................................ 21 Residential State Analysis ................................................................................................................. 22 Connecticut ................................................................................................................................................... 22 District of Columbia....................................................................................................................................... 23 Delaware ....................................................................................................................................................... 24 Massachusetts............................................................................................................................................... 25 Maryland ....................................................................................................................................................... 26 Maine .............................................................................................................................................................27 New Hampshire............................................................................................................................................. 28 New Jersey .................................................................................................................................................... 29 New York ...................................................................................................................................................... 30

Construction Codes in the Northeast | ii

Pennsylvania .................................................................................................................................................. 31 Rhode Island.................................................................................................................................................. 32 Vermont ......................................................................................................................................................... 33 Conclusions ..................................................................................................................................... 34 Building Energy Code Resources ........................................................................................................ 37 Endnotes ......................................................................................................................................... 39

Construction Codes in the Northeast | iii

Acknowledgements This project was developed by the High Performance Buildings Team at NEEP. Please direct questions or comments to the authors of this paper: Charlie Taylor, High Performance Buildings Research and Analysis Associate, NEEP, Ctaylor@neep.org, 781860-9177 ext. 151 Darren Port, Building Energy Codes Manager, NEEP, Dport@neep.org, 781-860-9177 ext. 132 The following NEEP staff provided invaluable input and feedback on this report: Carolyn Sarno Goldthwaite, Kevin Rose, Jim Oâ&#x20AC;&#x2122;Reilly, Brian Buckley, and Elizabeth Titus.

About NEEP Northeast Energy Efficiency Partnerships (NEEP) is a non-profit founded in 1996 based in Lexington, Massachusetts. NEEP supports the expansion and implementation of policies and programs to accelerate energy efficiency in the Northeast and Mid-Atlantic region. NEEP works in four key areas: speeding the adoption of high-efficiency products, reducing building energy use, advancing knowledge and best practices and generally increasing the visibility of the benefits of efficiency. Our vision is that the region will fully embrace energy efficiency as a cornerstone of sustainable energy policy to help achieve a cleaner environment and a more reliable and affordable energy system. NEEP is available to assist state energy offices, political candidates, legislators, regulators or administration officials in any of these areas. NEEP is one of six Regional Energy Efficiency Organizations (REEOs), which, through funded partnerships with the U.S. Department of Energy, are available to serve as resources for state and local energy officials, advocates and others, providing technical assistance to support efficiency policy development and adoption, along with strategic program design. NEEP also works with utilities, third-party program administrators, public officials, various advocacy groups, businesses and foundations. NEEP offers assistance in the following jurisdictions: Connecticut, Washington D.C., Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Disclaimer: NEEP verified the data used for this white paper to the best of our ability. This paper reflects the opinion and judgments of the NEEP staff and does not necessarily reflect those of NEEP Board members, NEEP Sponsors, or project participants and funders.

Construction Codes in the Northeast | iv

Executive Summary Buildings are among the largest users of energy in the United States, accounting for approximately 41 percent of all energy consumption, 72 percent of electricity usage, and over one-third of greenhouse gas emissions. Because this represents such a significant portion of our energy use, policies have been put into place that govern the way and extent to which buildings use energy. Building energy codes act as the “floor” or minimum level of efficiency at which new buildings or renovations can be constructed. Proponents of building energy codes sometimes point to them as a cost effective way to achieve large scale energy savings while ensuring consumer protection. The energy efficiency of a building is not very visible to most buyers so codes are a way of ensuring consistency in construction and design practices so consumers don’t get surprised with massive energy bills.

The Myth: Opponents of energy codes will often raise concerns over perceived complexities and upfront costs associated with code compliance and whether these impacts are enough to relocate construction projects to areas that don’t require code compliance or have less stringent enforcement. This report examines commercial and residential construction data from the Northeast and Mid-Atlantic regions to see if more rigorous code implementations have led to any noticeable impacts on investments in construction projects. This white paper lays out the data at the regional and state level and summarizes the findings of our analysis. We also provide projections of potential energy cost and carbon emissions savings potentials if all NEEP states were to implement the newest energy codes.

The Realities: 



 



Total regional construction projects are increasing - After falling significantly since the recession low point in 2008, total commercial and residential construction project numbers are on the rise and are projected to keep rising. Renovation projects are growing faster than new construction – Commercial building renovations have more than doubled over the last ten years (increasing by 258% since 2005), while new building construction has dipped significantly (decreasing by 26%). Commercial projects have increased since energy code updates - All NEEP states have undergone a commercial code update since 2008, and all show higher numbers of construction projects since the recession low in that year. Residential projects have increased since energy code updates – All NEEP states have also undergone residential code updates since 2008, and all show higher number of construction projects since that market bottomed out in 2011. Significant cost and emissions savings opportunities exist – If all NEEP states were to adopt the newest 2015 IECC energy codes, the residents and business owners of these states could save over $260 million over the next four years. The carbon savings during this same time period could reach over 1.5 million metric tons or the equivalent of taking 316,618 cars off the road for a year.

Construction Codes in the Northeast | 1

ď&#x201A;ˇ

Public building projects represent a big opportunity for energy savings - The share of public building construction projects1 since 2005 represents 44 percent of the total construction activity. The top three overall construction project types in the region were Government Offices, Pre and Elementary Schools, and Junior and Senior High Schools.

1 Public

Building Numbers Include: Courthouses, Elementary & Pre-Schools, Governmental Offices, Jr. & Sr. High Schools, Libraries, Museums, Military Buildings, Police & Fire Buildings.

Construction Codes in the Northeast | 2

Introduction Over half of the building stock in the United States was built before 1980. In the Northeast and Mid-Atlantic, the number is nearly 75 percent2. This represents 16 million housing units and 500,000 commercial buildings. Construction investments are expected to rise steadily over the coming years as the economic recovery continues. As this construction activity picks up and the region moves to update these aging buildings, building energy codes will be vital in ensuring a minimum level of energy efficiency. When states or adopting entities are considering moving to a more stringent energy code, there can be concerns over the economic impact of complying with these higher standards for builders, contractors, and practitioners, and, ultimately, the people who live or work in these buildings. Opponents of increasing the energy efficiency of building codes often argue that building projects will be moved to states that don’t have stringent energy codes, diverting economic activity away from states that adopt the most recent versions. To test this theory, NEEP analyzed construction data from states throughout the Northeast and Mid-Atlantic region to see if there is a correlation between the implementation of more energy efficient building energy codes and any significant changes in construction starts for commercial and residential buildings. Additionally, we created savings estimates using regional construction projections to compare the energy use and carbon emissions of buildings under current code in those jurisdictions to those which would be built to the 2015 International Energy Conservation Code (IECC), the most recent national model energy code.

Why Conduct This Analysis? This white paper has three primary goals: 

 

Identify trends in building construction for the Northeast and Mid-Atlantic regions for the purposes of providing a baseline in analyzing the impact of energy codes in the region while providing data to maximize the effectiveness of energy code compliance trainings. Examine the economic effects of building code implementation on residential and commercial building project starts, Estimate the cost and carbon savings potential if the NEEP region states were to implement the latest energy codes.

We hope this paper serves to inform a number of different stakeholders, including state and local code offices and other policymakers. The specific location, building type, and project type (new construction vs. renovation) analyses included in this report aim to provide granular data on the construction that has taken place in the region to help identify trends. This data could be used to more effectively target energy code trainings by matching them to areas which would maximize their impact. Code officials and other policymakers considering the adoption of new energy codes can use the baseline construction information, as well as the potential savings projections, to educate stakeholders and avoid any misconceptions about code adoption in their jurisdictions.

U.S. Energy Information Administration. 2012 CBECS Data, Table B8. “Year Constructed, Floorspace” http://www.eia.gov/consumption/commercial/data/2012/#b3 and 2009 RECS Data, Table HC2.3. “By Year of Construction” http://www.eia.gov/consumption/residential/data/2009/#undefined

Construction Codes in the Northeast | 3

Methodology Commercial construction data on new construction and renovations used for this analysis was purchased from CMD Group, Inc., formerly Reed Construction Data, a provider of business information for the North American construction industry. CMD Group construction data includes information taken from construction permitting including the project type (new/renovation), location by state and county, building type3, square footage, and cost. In order to provide some macroeconomic context on the housing market, we included the U.S. Real Gross Domestic Product (GDP) in some of the graphs along with the permitting numbers. The Real GDP is an inflation adjusted representation of the total value of economic output of the national economy. This metric is related to construction activity because the overall health of the economy has historically played a large part in the amount of public and private investment made in construction projects. The majority of the residential new construction data was compiled by CMD Group, Inc. and taken from publically available census data. The United States Census website was used to cross check CMD data and for states that weren’t included in CMD’s data set. Information on residential renovation construction projects is currently very limited because of widely varying reporting practices between municipalities. For this reason, only new construction data was included in the residential analysis. To make the projections for dollar savings and cost savings if states adopted the 2015 IECC energy codes, we used Oxford Economics projections. Oxford Economics provides economic forecasting and modeling for different industries all over the world to inform policy and business decisions. Their construction forecasting was included in CMD’s data for the region from 2015 through 2018. These estimates were combined with models created by the Pacific Northwest National Lab that provide average energy use and energy cost intensities of buildings in each state under different energy codes4. We compared the current code in each state with the 2015 IECC. For states that have already implemented the 2015 IECC (Vermont and Maryland as of the publication of this paper), we compared it to the code in place before the update to estimate their savings over the next four years. U.S. Environmental Protection Agency (EPA) and Energy Information Administration (EIA) assumptions were used for the carbon savings projections provided in this paper. The projected site energy savings of the 2015 IECC energy codes were multiplied by average emissions factors5 from the three Independent System Operators (ISOs) in NEEP’s region, as well as emissions coefficients for heating fuels based on an average for the region6 for residential and a national average for commercial7.

The commercial building data includes buildings of the following types: Amusement, College, University, Courthouses, Jr. and Sr. High Schools, Elementary and Pre-Schools, Governmental Offices, Hospitals, Clinics, Hotels, Motels, Labs, Library, Museums, Manufacturing, Miscellaneous Medical, Military, Nursing Homes, Assisted Living, Offices, Parking Garages, Police, Fire, Prisons, Religious, Miscellaneous Retail, Shopping, Special, Vocational, Convention Center, Transportation Terminals, and Warehouses. 4 U.S. Department of Energy. “State Analyses”. http://www.energycodes.gov/development/commercial/cost_effectiveness and http://www.energycodes.gov/development/residential 5 U.S. EPA. 2010 GHG Annual Emissions Rates. http://www.epa.gov/cleanenergy/documents/egridzips/eGRID_9th_edition_V10_year_2010_GHG_Rates.pdf 6 For Residential, assumed 56% of energy savings would be from heating fuels and 44% from electricity. For heating fuels we assumed a regional average of 10% Propane, 30% Oil, 50% Gas, and 10% Electric. These assumptions are from regional averages from the northeast and midatlantic. U.S. EIA. “State Fact Sheets” http://www.eia.gov/consumption/residential/reports/2009/state_briefs/ 7 Commercial Assumptions: U.S. Department of Energy. “Building Energy Data Book”. Graph 3.1.5 http://buildingsdatabook.eren.doe.gov/docs/xls_pdf/3.1.5.pdf

Construction Codes in the Northeast | 4

Construction Codes in the Northeast | 5

Background on Energy Codes in the Northeast and Mid-Atlantic Regions In NEEP’s Region, states currently employ building energy codes based on the last three generations of the national model codes and standards. Specifically, these are:   

ASHRAE Standard 90.1-2007 and 2009 IECC; ASHRAE Standard 90.1-2010 and 2012 IECC; and ASHRAE Standard 90.1-2013 and 2015 IECC.

Comparison of Energy Savings: A significant push to increase the energy efficiency of these model codes and standards over the past decade has resulted in there being substantial changes in code requirements and, in turn, energy savings potential among these three code cycles. The chart below shows the average reductions in site energy usage between the different code updates. Code

Percent Site Energy Reduction Over Previous Version of Code

Commercial: ASHRAE Standard 90.1

2004 to 2007: 5%8

2007 to 2010: 18%9

2010 to 2013: 8%10

Residential: IECC

2006 to 2009: 14%11

2009 to 2012: 21%12

2012 to 2015: 1%13

Cost Effectiveness: In order to ensure the initial costs of implementing these new codes is recouped in a reasonable amount of time the U.S. Department of Energy conducts cost effectiveness tests on each code update. These tests provide lifecycle cost net savings, cash flow analyses, and simple payback estimates. Once this analysis is completed, the analysis is released so state and local governments are better informed about the impacts of implementing these codes.

US Government Publishing Office. “Building Energy Standards Program: Determination Regarding Energy Efficiency Improvements in the Energy Standard for Buildings, Except LowRise Residential Buildings, ANSI/ ASHRAE/IESNA Standard 90.1–2007” http://www.gpo.gov/fdsys/pkg/FR-2011-07-20/pdf/2011-18251.pdf 9 U.S. Government Publishing Office. “Building Energy Standards Program: Final Determination Regarding Energy Efficiency Improvements in the Energy Standard for Buildings, Except LowRise Residential Buildings, ANSI/ ASHRAE/IESNA Standard 90.1–2010” http://www.gpo.gov/fdsys/pkg/FR-2011-10-19/pdf/2011-27057.pdf 10 Regulations.gov. “2014-09-26 Determination Regarding Energy Efficiency Improvements in ANSI/ASHRAE/IES Standard 90.1–2013: Energy Standard for Buildings, Except Low-Rise Residential Buildings; Notice of Determination.” http://www.regulations.gov/#!documentDetail;D=EERE-2014-BT-DET-0009-0006 11 US Government Publishing Office. “Updating State Residential Building Energy Efficiency Codes” http://www.gpo.gov/fdsys/pkg/FR-2011-0719/pdf/2011-18080.pdf 12 U.S. DOE. https://www.energycodes.gov/sites/default/files/documents/NationalResidentialCostEffectiveness.pdf 13 Regulations.gov. “2014-09-26 Preliminary Determination Regarding Energy Efficiency Improvements in the 2015 International Energy Conservation Code; Notice of Preliminary Determination” http://www.regulations.gov/#!documentDetail;D=EERE-2014-BT-DET-0030-0001

Construction Codes in the Northeast | 6

State

Current Regional Commercial Energy Code Adoptions (as of June 2015)

2009 IECC with reference to ASHRAE Standard 90.1 2007. Effective: 10/07/2011

2012 IECC with minor amendments. Effective 3/28/2014

ASHRAE Standard 90.1-2010. Effective: 05/11/2014

2012 IECC. Effective 07/01/2014

2015 IECC. Effective 01/01/2015

ASHRAE Standard 90.1-2007. Effective 12/01/2010 (optional for towns with fewer than 4,000 residents)

2009 IECC. Effective 04/01/2010

ASHRAE Standard 90.1-2007 with Amendments. Effective 09/07/2010

2012 IECC / ASHRAE Standard 90.1-2010 with NY amendments. Effective 01/01/2015

2009 IECC. Effective 12/31/2009

2012 IECC. Effective 10/01/2013

2015 IECC with VT amendments. Effective 03/01/2015

Construction Codes in the Northeast | 7

State

Current Regional Residential Energy Code Adoptions (as of June 2015)

2009 IECC. Effective 10/07/2011

2012 IECC. Effective 05/11/2014

2012 IECC. Effective 03/28/2014

2012 IECC. Effective 07/01/2014

2015 IECC. Effective 01/01/2015

2009 IECC. Effective 12/01/2010 (Optional for towns with fewer than 4,000 residents)

2009 IECC. Effective 04/01/2010

2009 IECC. Effective 09/07/2010

2009 IECC with amendments. Effective 12/28/2010

2009 IECC. Effective 12/31/2009

2012 IECC. Effective 07/01/2013

2015 IECC with VT amendments. Effective 03/01/2015

Construction Codes in the Northeast | 8

Construction Trends in the Region The following graphs provide a visual representation of the construction activity in the NEEP region. They are organized by the number of permits, the dollar value of projects, and the project type.

Construction Activity

Construction Costs (Billions)

2013

2012

2011

2010

$11

2009

Year Residential

$13

2005

$15

2008

50000

$17

2007

100000

$80 $70 $60 $50 $40 $30 $20 $10 $0

2006

Number of Permits

150000

GDP (Trillions)

Regional Construction Costs vs. US Real GDP(In 2013 US Dollars)

Total Regional Permits 200000

Commercial Commercial

Trendline

Residential

GDP

Permit Numbers

200000 150000 100000 50000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Commercial Permits Number of Permits

Number of Permits

Number of Residential Permits (New Construction Only)

18000 15000 12000 9000 6000 3000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013

Year

Trendline

Renovation

New

Trendline

Permit Breakdown Regional Commercial Permits by Building Type (2005-2013)

Public vs. Private Building Permits (2005-2013)

44% 56%

Public Buildings

Private Buildings

20% 3% 4% 4% 4% 6%

15% 14% 11%

9% 10%

Governmental Offices Elementary,Pre School Jr,Sr High School Shopping College,University Amusement Offices Hospitals,Clinics Retail Miscellaneous Police,Fire Other*

*Other includes the following building types: Library, Museum, Warehouses, Transportation Terminals, Prisons, Military, Parking Garages, Nursing Homes, Assisted Living, Special Vocational, Medical misc., Religious, Hotels, Motels, Courthouse, Industrial Labs, Labs, School Labs, Sport, Convention Center, Manufacturing.

Construction Codes in the Northeast | 9

Commercial State Analysis CONNECTICUT Current Code: 2009 IECC with reference to ASHRAE 90.1 2007 Effective Date: 10/07/2011 Total Commercial Projects (2005-2013): 7,292 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $10,958,295.24 Potential Carbon Savings 2015-2018 with Code Update: 55,513 tons Average Cost per Project: $2,806,742.39

Permit Numbers

Year Projects

Number of Projects

18000 16000 14000 12000

CT Permits: Public and Private Billions of 2013 $USD

1500 1000 500 0

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

CT Permits in Relation to U.S. GDP

1500 1000 500 0

Year Public Buildings

Year of new energy code implementation

U.S. GDP

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013)

Commercial Permits by Building Type (2005-2013)

Hartford

5% 4% 3% 5%

Fairfield

New Haven

28%

32%

New London

Tolland 22%

Litchfield

25%

Middlesex

7% 5%

Windham

Construction Costs

Total Construction Costs (2005-2013) Billions of Dollars

$5.00

$4.40

$4.00 $3.00 $2.00

$2.91 $2.12 $1.62

$2.65 $2.15

$1.37$1.49$1.76

$1.00 $0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 10

Renovation

5% 6% 6%

Governmental Offices Shopping Elementary,Pre School Jr,Sr High School Amusement College,University Police,Fire Retail Miscellaneous Hospitals,Clinics Library,Museum Other*

DISTRICT OF COLUMBIA Current Code: 2012 IECC with minor amendments Effective Date: Effective 3/28/2014 Total Commercial Projects (2005-2013): 1,676 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $1,726,709.02 Potential Carbon Savings 2015-2018 with Code Update: 9,559 tons Average Cost per Project: $9,685,286.64

Permit Numbers

Projects

Year of new energy code implementation

U.S. GDP

Number of Projects

Year

D.C. Permits: Public and Private Billions of 2013 $USD

2013

2012

2011

2010

2009

2008

2007

18000 16000 14000 12000

2006

400 300 200 100 0

2005

Number of Projects

D.C. Permits in Relation to U.S. GDP

400 300 200 100 0

Year Public Buildings

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$5.00 $4.02

$4.00 $3.00 $1.79

$2.00 $1.00

$1.07 $0.55

$2.03$1.77$1.81$1.82 $1.36

$0.00 200520062007200820092010201120122013 New

Renovation

Permit Type Commercial Permits by Building Type (2005-2013)

10% 35%

8% 8% 6%

5% 5% 5% 6%

6% 6%

Construction Codes in the Northeast | 11

Offices Governmental Offices Shopping Amusement College,University Retail Miscellaneous Hospitals,Clinics Elementary,Pre School Library,Museum Jr,Sr High School Other*

Private Buildings

DELAWARE Current Code: ASHRAE 90.1-2010 Effective Date: 05/11/2014 Total Commercial Projects (2005-2013): 1,517 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $836,940.41 Potential Carbon Savings 2015-2018 with Code Update: 1,718 tons Average Cost per Project: $3,203,788.95

Permit Numbers

Year

Projects

U.S. GDP

Billions of 2013 $USD

2013

2012

2011

2010

2009

2008

2007

2006

18000 16000 14000 12000

Number of Projects

DE Permits: Public and Private

300 200 100 0

2005

Number of Projects

DE Permits in Relation to U.S. GDP

250 200 150 100 50 0

Year Public Buildings

Year of new energy code implementation

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013)

13%

21%

New Castle 54%

25%

Commercial Permits by Building Type (2005-2013)

28%

Kent 4% 5% 5%

Sussex

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$1.50 $1.23 $1.00 $0.50

$0.61$0.57 $0.45$0.49 $0.33$0.46 $0.33

$0.39

$0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 12

Renovation

12% 9% 7%

5% 6% 6%

Shopping Governmental Offices Elementary,Pre School Jr,Sr High School Hospitals,Clinics Offices College,University Retail Miscellaneous Amusement Police,Fire Other*

iii

MASSACHUSETTS Current Code: 2012 IECC Effective Date: 07/01/2014 Total Commercial Projects (2005-2013): 14,992 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $9,656,482.85 Potential Carbon Savings 2015-2018 with Code Update: 48,947 tons Average Cost per Project: $3,015,001.68

Permit Numbers

2000

16000

1000

14000

12000

Year Projects

GDP

Number of Projects

18000

MA Permits: Public and Private Billions of 2013 $USD

3000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

MA Permits in Relation to US GDP

3000 2000 1000 0

Year Public Buildings

Year of new energy code implementation

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 6%

Middlesex Suffolk Worcester Essex Norfolk Hampden Bristol Hampshire Plymouth Barnstable Other

5% 21%

6% 6%

16%

7% 8%

Commercial Projects by Building Type (2005-2013)

9% 12%

9% 31%

8% 8% 5% 5%

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$8.00 $6.38

$6.00 $4.00 $2.00

$3.82 $4.28

$5.80 $4.90

$6.75 $5.44$5.53

$2.29

$0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 13

Renovation

7% 5% 6%

Governmental Offices Shopping Jr,Sr High School Elementary,Pre School College,University Amusement Police,Fire Library,Museum Retail Miscellaneous Offices Other*

MARYLAND Current Code: 2015 IECC Effective Date: 01/01/2015 Total Commercial Projects (2005-2013): 9,610 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $12,412,062.64 Potential Carbon Savings 2015-2018 with Code Update: 64,678 tons Average Cost per Project: $4,520,622.19

Permit Numbers

1000

16000

500

14000

12000

Year

Number of Projects

18000

MD Permits: Public and Private Billions of 2013 $USD

1500

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

MD Permits in Relation to U.S. GDP

1500 1000 500 0

Year Public Buildings

Year of new energy code implementation

Projects

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 2% 16%

3% 4%

26%

12%

5% 6%

11% 11%

Baltimore City Montgomery Prince George's Anne Arundel Frederick Howard Washington Harford Wicomico Carroll Other

Commercial Permits by Building Type (2005-2013) Shopping 11%

Total Construction Costs (2005-2013) Billions of 2013 Dollars

$8.00

$4.00

$6.15 $5.94 $5.55 $4.92 $4.92 $4.56 $3.94 $3.89 $3.58

$2.00 $0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 14

Renovation

4% 6%

8% 7% 7%

Governmental Offices Elementary,Pre School Amusement

Construction Costs

$6.00

10%

28%

Jr,Sr High School Retail Miscellaneous v

MAINE Current Code: ASHRAE Standard 90.1-2007 (As of September, 2011 this code is optional for towns with fewer than 4,000 residents) Effective Date: 12/01/2010 Total Commercial Projects (2005-2013): 2,703 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $9,032,318.92 Potential Carbon Savings 2015-2018 with Code Update: 49,518 tons Average Cost per Project: $2,260,113.52

Permit Numbers

16000 14000

2013

2012

2011

2010

2009

2008

2007

2006

12000

Year

Number of Projects

18000

ME Permits: Public and Private Billions of 2013 $USD

500 400 300 200 100 0

2005

Number of Projects

ME Permits in Relation to U.S. GDP

500 400 300 200 100 0

Year of new energy code implementation

Projects

Year Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 2% 3%

10%

Cumberland Penobscot Kennebec York Androscoggin Aroostook Hancock Washington Oxford Somerset Other

3% 26%

5% 6%

14%

10%

Commercial Permits by Building Type (2005-2013)

14% 29% 4% 5%

Construction Costs

Billions of Dollars

Total Construction Costs (2005-2013) $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00

$0.95 $0.99 $0.74 $0.54 $0.47

$0.59

$0.61 $0.63$0.60

2005 2006 2007 2008 2009 2010 2011 2012 2013 New

Construction Codes in the Northeast | 15

Renovation

10% 8%

7% 5% 6% 7%

Governmental Offices Shopping College,University Jr,Sr High School Elementary,Pre School Amusement Retail Miscellaneous Police,Fire Hospitals,Clinics Warehouses Other*

NEW HAMPSHIRE Current Code: 2009 IECC Effective Date: 04/01/2010 Total Commercial Projects (2005-2013): 2,669 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $5,867,527.64 Potential Carbon Savings 2015-2018 with Code Update: 25,492 tons Average Cost per Project: $2,691,273.55

Permit Numbers

16000 14000

2013

2012

2011

2010

2009

2008

2007

2006

12000

Year

Number of Projects

18000

NH Permits: Public and Private Billions of 2013 $USD

500 400 300 200 100 0

2005

Number of Projects

NH Permits in Relation to U.S. GDP

500 400 300 200 100 0

Year

Year of new energy code implementation

Projects

Public Buildings

Private Buildings

Permit Breakdown

Commercial Permits by County (2005-2013) 2% 2%

5% 7%

Hillsborough Rockingham Merrimack Strafford Grafton Belknap Cheshire Carroll Coos Sullivan

22%

9% 21%

12% 17%

Commercial Permits by Building Type (2005-2013)

14% 26% 12% 4% 5% 5%

Construction Costs Total Construction Costs (2005-2013) Billions of Dollars

$2.00

$1.75

$1.50 $1.00

$0.77 $0.73$0.72 $0.61

$0.50

$1.02 $0.72 $0.48 $0.38

$0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 New

Construction Codes in the Northeast | 16

Renovation

8% 7% 6% 6% 7%

Shopping Governmental Offices College,University Elementary,Pre School Jr,Sr High School Amusement Retail Miscellaneous Hospitals,Clinics Offices Police,Fire Other*

vii

NEW JERSEY Current Code: ASHRAE Standard 90.1-2007 with Amendments Effective Date: 09/07/2010 Total Commercial Projects (2005-2013): 13,691 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $20,207,919.70 Potential Carbon Savings 2015-2018 with Code Update: 94,433 tons Average Cost per Project: $2,867,920.53

Permit Numbers

16000 14000 12000

Year Projects

Number of Projects

18000

NJ Permits: Public and Private Billions of 2013 $USD

2500 2000 1500 1000 500 0

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

NJ Permits in Relation to US GDP

2500 2000 1500 1000 500 0

Year

Year of new energy code implementation

U.S. GDP

Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) Bergen Essex Monmouth Middlesex Mercer Morris Burlington Union Passaic Camden Other

12% 30%

9% 8%

5% 5%

5% 6% 6%

Commercial Permits by Building Type (2005-2013)

7% 7%

11% 29%

10% 3% 4% 5%

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$8.00 $6.00 $4.00

$7.29 $4.72 $4.74

$5.19

$4.74 $2.98$2.96

$2.85

$3.79

$2.00 $0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 17

Renovation

10% 9%

5% 7% 7%

Governmental Offices Elementary,Pre School Shopping Jr,Sr High School Amusement College,University Retail Miscellaneous Police,Fire Library,Museum Offices Other*

viii

NEW YORK Current Code: 2012 IECC / ASHRAE 90.1-2010 with NY amendments Effective Date: 01/01/2015 Total Commercial Projects (2005-2013): 28,971 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $17,008,127.52 Potential Carbon Savings 2015-2018 with Code Update: 82,876 tons Average Cost per Project: $3,840,781.97

Permit Numbers

16000 14000 12000

Year

Number of Projects

18000

NY Permits: Public and Private Billions of 2013 $USD

5000 4000 3000 2000 1000 0

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

NY Permits in Relation to US GDP

5000 4000 3000 2000 1000 0

Year

Year of new energy code implementation

Projects

Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 7%

12% 41%

7% 6%

4% 4%

4% 5%

5% 5%

New York Kings Suffolk Erie Queens Nassau Westchester Bronx Albany Monroe Other

Commercial Permits by Building Type (2005-2013) 10% 10% 30% 9%

Billions of 2013 Dollars

$20.00 $15.09 $14.80 $14.05 $12.78$12.28 $12.51 $12.15 $9.57 $8.05

$5.00 $0.00

New

Construction Codes in the Northeast | 18

Renovation

Shopping Jr,Sr High School

Total Construction Costs (2005-2013)

$10.00

Construction Costs

$15.00

Governmental Offices Elementary,Pre School College,University

6% 6%

Amusement ix

PENNSYLVANIA Current Code: 2009 IECC Effective Date: 12/31/2009 Total Commercial Projects (2005-2013): 18,112 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $47,852,562.52 Potential Carbon Savings 2015-2018 with Code Update: 200,772 tons Average Cost per Project: $2,980,588.87

Permit Numbers

2000

16000

1000

14000

12000

Year

Number of Projects

18000

PA Permits: Public and Private Billions of 2013 $USD

3000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Projects

PA Permits in Relation to US GDP

3000 2000 1000 0

Year

Year of new energy code implementation

Projects

Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) Allegheny

12% 42%

8% 7% 5% 4%

4% 3%

3% 3% 3%

Philadelphia Montgomery Bucks Chester Delaware Lancaster Dauphin Berks Luzerne Lehigh York Other

Commercial Permits by Building Type (2005-2013)

12% 27%

10% 4% 4% 5%

Construction Costs

Billions of 2013 Dollars

Total Construction Costs (2005-2013) $10.00 $8.00 $6.00 $4.00 $2.00 $0.00

$5.92 $4.52

$7.14$7.73$7.39 $6.21 $5.02$5.12$4.95

New

Construction Codes in the Northeast | 19

Renovation

10% 9%

5% 7% 7%

Governmental Offices Shopping Jr,Sr High School Elementary,Pre School Amusement College,University Retail Miscellaneous Hospitals,Clinics Offices Warehouses Other*

RHODE ISLAND Current Code: 2012 IECC Effective Date: 10/01/2013 Total Commercial Projects (2005-2013): 1,876 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $2,017,368.19 Potential Carbon Savings 2015-2018 with Code Update: 9,793 tons Average Cost per Project: $2,363,183.86

Permit Numbers

16000 14000

2013

2012

2011

2010

2009

2008

2007

2006

12000

Year

Number of Projects

18000

RI Permits: Public and Private Billions of 2013 $USD

400 300 200 100 0

2005

Number of Projects

RI Permits in Relation to US GDP

400 300 200 100 0

Year

Year of new energy code implementation

Projects

Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 10%

Commercial Permits by Building Type (2005-2013) Governmental Offices

4% Providence Washington

11%

28%

Kent 56%

19%

9% 4% 4% 5%

Newport Bristol

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$0.80

$0.76

$0.72

$0.60 $0.40

12% 9%

$0.45

$0.42

$0.52

$0.46 $0.33

$0.42 $0.35

$0.20 $0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 20

Renovation

College,University Elementary,Pre School Jr,Sr High School

8% Shopping 5% 8%

Amusement xi

VERMONT Current Code: 2015 IECC with VT amendments Effective Date: 03/01/2015 Total Commercial Projects (2005-2013): 1,413 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $5,054,756.70 Potential Carbon Savings 2015-2018 with Code Update: 28,676 tons Average Cost per Project: $1,754,346.31

Permit Numbers

Number of Projects

2013

2012

2011

2010

2009

2008

2007

Year

Billions of 2013 $USD

VT Permits: Public and Private

18000 16000 14000 12000

2006

300 200 100 0

2005

Number of Projects

VT Commercial Permits in Relation to US GDP

250 200 150 100 50 0

Year

Year of new energy code implementation

Projects

Public Buildings

Private Buildings

Permit Breakdown Commercial Permits by County (2005-2013) 4% 5%

31%

5% 7%

12% 8%

7% 8%

Chittenden Washington Windham Windsor Rutland Bennington Addison Franklin Lamoille Orleans Other

Commercial Permits by Building Type (2005-2013)

16% 31%

Construction Costs Total Construction Costs (2005-2013) Billions of 2013 Dollars

$1.50 $1.18 $1.00 $0.50

$0.56

$0.91 $0.85 $0.71$0.79

$0.77 $0.65 $0.51

$0.00 200520062007200820092010201120122013 New

Construction Codes in the Northeast | 21

Renovation

8% 7%

5% 5% 6% 6%

6% 6%

Governmental Offices Shopping Elementary,Pre School Jr,Sr High School Amusement College,University Offices Hospitals,Clinics Retail Miscellaneous Military Other*

xii

Residential State Analysis CONNECTICUT Current Code: 2009 IECC Effective Date: 10/07/2011 Total New Residential Projects: 40,830 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $7,400,615 Potential Carbon Savings 2015-2018 with Code Update: 41,761 tons Average Cost per Project: $331,479.77

CT Residential Permits Number of Projects

12000 10000

9657 8056

8000 6047 6000 3419

4000

2377

2974

3151 2359 2790

2000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Litchfield 4% Middlesex 4% New London 7%

Tolland 3%

Windham 2%

Fairfield 31%

New Haven 21%

Hartford 28%

Construction Codes in the Northeast | 22

DISTRICT OF COLUMBIA Current Code: 2012 IECC Effective Date: 05/11/2014 Total New Residential Projects: 2,552 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $10,166 Potential Carbon Savings 2015-2018 with Code Update: 151 tons Average Cost per Project: $115,341.06

DC Residential Permits Number of Projects

700

628

600 500

399

400

200

327

279

300 160

141

2005

2006

257 163

198

100 0

Construction Codes in the Northeast | 23

2007

2008

2009 Year

2010

2011

2012

2013

Year of new energy code implementation

DELAWARE Current Code: 2012 IECC Effective Date: 03/28/2014 Total New Residential Projects: 34,480 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $191,220 Potential Carbon Savings 2015-2018 with Code Update: 1,144 tons Average Cost per Project: $303,043.25

DE Residential Permits Number of Projects

8000 7000

6718

6000

5183 4447

5000

3658

4000 3000

2708

2559

2851

2008

2009 Year

2010

2453

2932

2000 1000 0 2005

2006

2007

2011

2012

2013

Year of new energy code implementation

Residential Permits by County (2005-2013) New Castle 25%

Sussex 49%

Kent 26%

Construction Codes in the Northeast | 24

MASSACHUSETTS Current Code: 2012 IECC Effective Date: 07/01/2014 Total New Residential Projects: 150,304 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $334,218 Potential Carbon Savings 2015-2018 with Code Update: 3,247 tons Average Cost per Project: $390,500.13

Number of Projects

MA Residential Permits 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

15865 12546 9965 8082 6031

6707 4926

5464

6638

2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Barnstable Hampshire 2% 3% Plymouth 5%

Other 3%

Middlesex 27%

Hampden 6% Bristolâ&#x20AC;Ś

Essex 9% Worcester 10%

Construction Codes in the Northeast | 25

Suffolk 19% Norfolk 10%

MARYLAND Current Code: 2015 IECC Effective Date: 01/01/2015 Total New Residential Projects: 187,261 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $514,900 Potential Carbon Savings 2015-2018 with Code Update: 4,596 tons Average Cost per Project: $354,413.74

MD Residential Permits Number of Projects

25000 20000

22668 18286 13531

15000

9011

10000

9011 8424 9521 7795

10556

5000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Prince George 13%

Other 22%

Montgomery 11% Washington 4% St. Mary's 5% Charles 6% Frederick 7%

Construction Codes in the Northeast | 26

Anne Arundel 9% Howard 9% Harforâ&#x20AC;Ś

Baltimore 7%

MAINE Current Code: 2009 IECC (Optional for towns with fewer than 4,000 residents) Effective Date: 12/01/2010 Total New Residential Projects: 46,624 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $13,704,920 Potential Carbon Savings 2015-2018 with Code Update: 48,711 tons Average Cost per Project: $212,412.14

Number of Projects

ME Residential Permits 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

9107 8115 6046 4041 3205 3088

3016 2446 2679

2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Sagadahoc 3% Oxford 3% Somerset 3% Hancock 4%

Other 12% Cumberland 29%

Aroostâ&#x20AC;Ś York 13%

Androscoggin 8% Kennebec 9%

Construction Codes in the Northeast | 27

Penobscot 11%

NEW HAMPSHIRE Current Code: 2009 IECC Effective Date: 04/01/2010 Total New Residential Projects: 29,076 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $5,838,372 Potential Carbon Savings 2015-2018 with Code Update: 34,168 tons Average Cost per Project: $296,226.29

NH Residential Permits Number of Projects

8000

7045

7000 5626

6000 5000

4253

4000 2586

3000

1663

2000

2084

1735

1813

2011

2012

2271

1000 0 2005

2006

2007

2008

2009 Year

2010

Year of new energy code implementation

Residential Permits by County (2005-2013) Carroll 3%

Belknap 4%

Cheshâ&#x20AC;Ś

Sullivan 2%

Coos 2% Hillsborough 34%

Strafford 8% Grafton 8%

Merrimack 11%

Construction Codes in the Northeast | 28

2013

Rockingham 23%

NEW JERSEY Current Code: 2009 IECC Effective Date: 09/07/2010 Total New Residential Projects: 135,624 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $21,833,041 Potential Carbon Savings 2015-2018 with Code Update: 95,426 tons Average Cost per Project: $318,504.36

NJ Residential Permits Number of Projects

30000 25000 20000

23900 19448 14531

15000

10943

9619

10000

6786

8150

6898 7794

5000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Bergen 12% Other 26%

Middlesex 10%

Somerset 5%

Essex 9%

Camden 5% Mercer 5% Union 6%

Construction Codes in the Northeast | 29

Morris 8% Monmoutâ&#x20AC;Ś

Hudson 7%

NEW YORK Current Code: 2009 IECC with amendments Effective Date: 12/28/2010 Total New Residential Projects: 164,892 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $19,569,492 Potential Carbon Savings 2015-2018 with Code Update: 304,024 tons Average Cost per Project: $501,709.28

NY Residential Permits Number of Projects

30000

27680 23159

25000

19113

20000

13797

15000

9627

10000

11031

11105 9245 10202

5000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Other 22%

New York 31%

Onondaga 2% Monroe 4% Bronx 4% Erie 4%

Construction Codes in the Northeast | 30

Westcheâ&#x20AC;Ś

Kings 7% Nassau Suffolk 7% 7%

Queens 7%

PENNSYLVANIA Current Code: 2009 IECC Effective Date: 12/31/2009 Total New Residential Projects: 286,788 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $42,166,317 Potential Carbon Savings 2015-2018 with Code Update: 273,392 tons Average Cost per Project: $290,875.45

Number of Projects

PA Residential Permits 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

40569

37442 30671 21672 18012 14759

12832 14367

16518

2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Year of new energy code implementation

Residential Permits by County (2005-2013) Philadelphia 13% Other 39%

Berks 3% York 3%

Construction Codes in the Northeast | 31

Allegheny 12%

Lehigh Lancaster 3% 4%

Montgomery 9% Chester Bucks 5% 5% Delaware 4%

RHODE ISLAND Current Code: 2012 IECC Effective Date: 07/01/2013 Total New Residential Projects: 10,157 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $2,422,730 Potential Carbon Savings 2015-2018 with Code Update: 9,847 tons Average Cost per Project: $277,667.59

RI Residential Permits Number of Projects

2500 2000

1975

1987 1548

1500 926

1000

694

808 618

725

876

500 0 2005

2006

2007

2008

2009 Year

2010

2011

2012

Year of new energy code implementation

Residential Permits by County (2005-2013) Newport 9%

Bristol 3%

Washington 11%

Kent 16%

Construction Codes in the Northeast | 32

2013

Providence 61%

VERMONT Current Code: 2015 IECC with VT amendments Effective Date: 03/01/2015 Total New Residential Projects: 15,380 Potential Dollar Savings 2015-2018 with Code Update (in 2015 Dollars): $3,904,122 Potential Carbon Savings 2015-2018 with Code Update: 15,493 tons Average Cost per Project: $265,202.03

VT Residential Permits Number of Projects

3500 3000

2922

2773

2500 1982

2000

1499

1500

1149

1080

1000

877

963

1037

2011

2012

2013

500 0 2005

2006

2007

2008

2009 Year

2010

Year of new energy code implementation

Residential Permits by County (2005-2013) Lamoille Other 4% 8% Caledonia 4% Addison 5%

Chittenden 32%

Bennington 6% Franklinâ&#x20AC;Ś Windham 7% Windsor 8%

Construction Codes in the Northeast | 33

Washington 11% Rutland 9%

Conclusions Commercial Building Projects: Over our study period from 2005-2013, regional permit data shows an upward trend in the number of commercial building projects initiated. This is largely due to the fact that the number of renovation projects has risen sharply and is forecasted to continue doing so while new construction project numbers slowly decreased. This growth in renovation projects highlights a significant opportunity to focus on incorporating energy saving retrofits into renovations as part of a broader energy efficiency strategy.

Residential Building Projects: Conversely, the numbers for new residential building projects show a downward trend since 2005. There has been a slight rebound since the market bottomed out in 2009 and these numbers are expected to rise significantly through the coming years (note that this analysis only included new construction for the residential market).

Total Building Projects: The total number of residential and commercial permits in the region also shows a downward slope. This is mainly due to the sharp drop seen in residential construction activity in the region.

Public Building Projects: The share of public building construction projects14 since 2005 represents 44 percent of the total construction activity. The top three overall construction project types in the region were Government Offices, Preand Elementary Schools, and Junior and Senior High Schools. This represents a large opportunity to capture energy savings while ensuring healthy, productive indoor environments through programs designed to lead by example in the public sector by constructing buildings that significantly exceed energy codes in their energy usage characteristics.

Effects of Code Updates on Commercial Construction: Since the period of economic recession in 2008-2009 when the construction activity in the region fell sharply, all 12 of the NEEP states have undergone a commercial code update. Five of these states have updated their energy code twice in this time period. Of these 17 code updates in the region: ď&#x201A;ˇ

Eleven showed rising trends in permit applications from the year before to the year after the implementation of the new code. Five showed no significant changes in activity and only one showed a downward trend as seen in the graph below: State

Year of Code Update

Commercial Project Starts Trend

Year of Second Code Update (If Applicable)

2009

2011

2008

2010

2008

2010

Commercial Project Starts Trend

Public Building Numbers Include: Courthouses, Elementary & Pre-Schools, Governmental Offices, Jr. & Sr. High Schools, Libraries, Museums, Military Buildings, Police & Fire Buildings.

Construction Codes in the Northeast | 34

2009

2012

2010

2008

2011

2009

2013

2011

These increases in construction activity help illustrate the trend that the timing of new code implementation and the year following are not correlated with any significant drop in construction project activity. All of the states in the region show an upward trend in commercial construction permitting numbers and have higher levels of activity since the low point in 2008.

Effects of Code Updates on Residential Construction: The same number of code updates occurred between 2008 and 2013 on the residential side. Of these 17 code updates: ď&#x201A;ˇ

Seven showed rising trends in permit applications from the year before to the year after the implementation of the new code. Three showed no significant changes in activity and seven showed a downward trend as seen in the graph below: State

Year of Code Update

2009

2011

2008

2010

2008

2010

2009

2012

2010

Construction Codes in the Northeast | 35

Residential Project Starts Trend

Year of Second Code Update (If Applicable)

Residential Project Starts Trend

2010

2008

2011

2009

2013

2011

The overall construction activity for new residential buildings in the region fell significantly since peaking in 2005. The region only showed growth in permit numbers in three years compared to the previous year. The residential construction activity during years of code updates was consistent with the regional trend. There was no noticeable drop in construction projects in specific states during these years or the years immediately following.

Dollar Savings Projections: Using projections of construction activity provided by the CMD Group Inc. and developed by Oxford Economics along with building models created by PNNL, we estimate that the regional dollar savings potential of all the NEEP states updating their commercial energy code to the 2015 IECC would be $142,631,071.37 in inflation adjusted 2015 dollars between 2015 and 2018. The regional residential savings with code update would be $117,890,114.13.

Emissions Savings Projections: Using the Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator15 and the modeled energy usage of the forecasted new buildings we estimated the potential carbon savings of implementing the 2015 IECC energy codes. The potential regional commercial carbon savings is 671,975 metric tons from 2015 to 2018. The regional potential for residential carbon savings is 831,960 metric tons. These savings are the equivalent to taking 316,618 cars off the road for a year. These savings projections should be of significant interest to states as they file their compliance plans to meet the proposed carbon reduction standards under the EPA’s Clean Power Plan (section 111(d) of the federal Clean Air Act).

U.S. Environmental Protection Agency. “Calculations and References.” http://www.epa.gov/cleanenergy/energy-resources/refs.html

Construction Codes in the Northeast | 36

Building Energy Code Resources NEEP offers a number of resources on building energy codes including model code policies, beyond code (stretch code, net-zero energy, etc.) guidance, and strategies for code attribution in efficiency programs. For more on NEEP’s building energy codes initiative, visit our website here: http://neep.org/initiatives/energy-efficient-buildings/building-energycodes

NEEP Resources NEEP Code Adoption Toolkit NEEP’s Code Adoption Toolkit is a collection of state, regional, and national resources developed to aid development and adoption of more efficient energy codes. This document includes links to materials such as: code analyses and comparisons; state amendments and model language; and code case studies and talking points for topics such as stretch codes and the non-energy benefits of codes. http://www.neep.org/sites/default/files/resources/Adoption-Toolkit.pdf NEEP Code Compliance Toolkit NEEP’s Code Compliance Toolkit is a collection of state, regional, and national resources developed to improve compliance and enforcement of more efficient energy codes. This document includes links to materials such as: code training materials, FAQs, inspection tools, and field guides; code compliance assessments; and code case studies and talking points for topics like attribution of savings to utility code compliance programs and streamlined permitting. http://www.neep.org/sites/default/files/resources/Compliance-Toolkit.pdf NEEP Model Progressive Building Energy Code Policy The Model Progressive Building Energy Codes Policy Report provides a set of interconnected recommendations aimed at ensuring that states throughout the Northeast and Mid-Atlantic region adopt and achieve compliance with progressively more efficient building energy codes. http://www.neep.org/sites/default/files/resources/Model%20Progressive%20Building%20Energy%20Codes%20Policy_1.pdf

NEEP’s Attributing Building Energy Codes to Energy Efficiency Programs Report This report details the methods for attributing savings from energy codes to energy efficiency programs in the region. http://www.neep.org/attributing-building-energy-code-savings-energy-efficiency-programs NEEP Roadmap to Zero Net Energy Public Buildings Included in this report are “intermediate-term steps” that NEEP recommends be taken in the next 10-15 years to make zero net energy public buildings a widespread practice across the region. These are followed by a series of “critical next steps” that NEEP suggests must be taken now to pave the way to a future where all new buildings consume only as much energy as they produce. http://www.neep.org/sites/default/files/resources/Report_zne-public-buildings-neep-2012.pdf Northeast CHPS Criteria for New Construction and Renovations The Northeast CHPS Verified Program (NE-CHPS) has been designed to provide guidance and verification for new school projects, renovations, and new schools on existing campuses to achieve high performance goals beyond the building code. http://www.neep.org/nechps

Construction Codes in the Northeast | 37

Massachusetts BAR Pilot This partnership between NEEP and the Massachusetts Department of Energy Resources (MA DOER) seeks to develop and test new methods of assessing the performance of a building’s energy features. http://www.neep.org/initiatives/energy-efficient-buildings/building-asset-rating

Additional Resources U.S. Department of Energy Code Compliance Tools REScheck™ and COMcheck™ are software tools that simplify and clarify compliance for the IECC model energy code and a number of state and local codes. http://www.energycodes.gov/compliance/tools U.S. Department of Energy Model Energy Code Policies This page examines model policies from States and local jurisdictions across the nation that have demonstrated leadership in developing programs encouraging and requiring compliance with energy codes, stretch codes (e.g., above-minimum codes) and green building techniques, energy-efficiency practices, and environmentally-friendly procedures. https://www.energycodes.gov/resource-center/model-policies U.S. Department of Energy Building Energy Code Resource Guide: Code Officials Edition This guide includes practical plan review and inspection resources, including the U.S. Department of Energy Building Energy Codes Program's REScheck™ and COMcheck™ quick reference guides, case studies, and sample inspection checklists; as well as excerpts from International Code Council's commentaries, workbooks, and code companion materials. https://www.energycodes.gov/building-energy-code-resource-guide-code-officials-edition The Building Codes Assistance Project’s Online Code Environment and Advocacy Network (OCEAN) OCEAN is an interactive resource designed to share experiences, best practices, educational resources, and news about building energy codes. By creating a virtual community, OCEAN enables stakeholders to discuss and learn about code issues, connect to trainers and educators, and find policies and program ideas that can serve as models. http://bcap-energy.org/ocean/

Construction Codes in the Northeast | 38

Endnotes

Connecticut: *Other includes buildings of the following types in order: Offices, Warehouses, Parking Garages, Nursing, Homes, Assisted Living, Religious, Medical misc., Special Vocational, Transportation Terminals, Courthouse, Military, Hotels, Motels, Industrial Labs, Labs, School Labs, Sports and Convention Centers, Manufacturing and Prisons. ii

District of Columbia: *Other includes buildings of the following types in order: Religious, Hotels, Motels, Transportation Terminals, Military, Courthouses, Police, Fire, Special, Vocational, Industrial Labs, Labs, School Labs, Medical misc., Parking Garages, Warehouses, Prisons, Nursing Homes, Assisted Living, Sport and Convention Centers. iii

Delaware: *Other includes buildings of the following types in order: Warehouses, Military, Prisons, Religious, Medical misc., Library, Museum, Courthouse, Special Vocational, Hotels, Motels, Transportation Terminals, Nursing Homes, Assisted Living, Industrial Labs, Labs, School Labs, Parking Garages, Sport, Convention Centers, Manufacturing iv

Massachusetts: *Other includes buildings of the following types in order: Religious, Police, Fire, Medical misc., Library, Museum, Military, Special Vocational, Transportation Terminals, Prisons, Parking Garages, Industrial Labs, Labs, School Labs, Hotels, Motels, Nursing Homes, Assisted Living, Courthouse, Sport and Convention Centers and Manufacturing. v

Maryland: *Other includes buildings of the following types in order: Religious, Police, Fire, Medical misc., Library, Museum, Military, Special Vocational, Transportation Terminals, Prisons, Parking Garages, Industrial Labs, Labs, School Labs, Hotels, Motels, Nursing Homes, Assisted Living, Courthouse, Sport and Convention Centers and Manufacturing. vi

Maine: *Other includes buildings of the following types in order: Offices, Library, Museum, Transportation Terminals, Military, Medical misc., Parking Garages, Manufacturing, Courthouse, Nursing Homes, Assisted Living, Religious, Hotels, Motels, Industrial Labs, Labs, School Labs, Special, Vocational, Prisons, Sport and Convention Centers. vii

New Hampshire: *Other includes buildings of the following types in order: Library, Museum, Warehouses, Nursing Homes, Assisted Living, Medical misc., Military, Hotels, Motels, Parking Garages, Religious, Manufacturing, Transportation Terminals, Courthouse, Industrial Labs, Labs, School Labs, Prisons, Special Vocational, Sports and Convention Centers. viii

New Jersey: *Other includes buildings of the following types in order: Hospitals, Clinics, Warehouses, Special, Vocational, Nursing Homes, Assisted Living, Transportation Terminals, Religious, Parking Garages, Prisons, Medical misc., Military, Courthouse, Hotels, Motels, Sport, Convention Centers, Industrial Labs, Labs, School Labs, and Manufacturing. ix

New York: *Other includes buildings of the following types in order: Hospitals, Clinics, Warehouses, Special, Vocational, Nursing Homes, Assisted Living, Transportation Terminals, Religious, Parking Garages, Prisons, Medical misc., Military, Courthouse, Hotels, Motels, Sport, Convention Centers, Industrial Labs, Labs, School Labs, and Manufacturing. x

Pennsylvania: *Other includes buildings of the following types in order: Library, Museum, Police, Fire, Religious, Nursing Homes, Assisted Living, Prisons, Special, Vocational, Parking Garages, Medical misc., Military, Transportation Terminals, Hotels, Motels, Courthouse, Manufacturing, Sports and Convention Centers, Industrial Labs, Labs, and School Labs. xi

Rhode Island: *Other includes buildings of the following types in order: Library, Museum, Offices, Warehouses, Transportation Terminals, Industrial Labs, Labs, School Labs, Prisons, Sports and Convention Centers, Medical misc., Parking Garages, Special, Vocational, Nursing Homes, Assisted Living, Hotels, Motels, Courthouse, Religious, and Manufacturing. xii

Vermont: *Other includes buildings of the following types in order: Warehouses, Police, Fire, Library, Museum, Medical misc., Nursing Homes, Assisted Living, Prisons, Parking Garages, Hotels, Motels, Religious, Manufacturing, Special, Vocational, Transportation Terminals, Courthouse, Industrial Labs, Labs, School Labs, Sports and Convention Centers.

Construction Codes in the Northeast | 39