Labor, business and homeowners file lawsuit to challenge costly new energy code

by Janelle Guthrie Communications Director

A coalition of trade associations, union representatives, businesses and homeowners has banded together to file a lawsuit to challenge the State Building Code Council’s new codes restricting the use of natural gas and propane in new residential and commercial construction.

New rules essentially eliminate natural gas and propane choice

The lawsuit is directed at three rules passed by the State Building Code Council late last year amending the state commercial and residential building codes, the energy code and the wildland urban interface code. As an example of the impact of the new changes, builders will be required to install heat pumps for space and water heating in all new buildings built after July 1, 2023. These changes remove the incentive for natural gas companies to run natural gas into new homes, which essentially eliminates the ability for home and property owners to have natural gas for ranges, fireplaces or other uses.

The council also passed a new wildland urban interface code with real impacts on building new homes affordably. They also adopted a rule requiring builders to equip all new homes with carports and garages with 40-amp, 208/240-volt branch circuits for electric vehicles.

Unique coalition comes together

The lawsuit filed in Thurston County Superior Court attracted a broad coalition of more than 20 plaintiffs representing union tradespeople, home builders, remodelers, HVAC installers, potential new homeowners and energy companies.

“These overreaching rules were approved by an unelected body with no legislative authority,” said BIAW General Counsel Jackson Maynard. “This suit has united folks impacted by the costly and illegal rules across traditional political, economic and geographic boundaries. We are proud to challenge these decisions on behalf of union workers, families seeking affordable housing opportunities, builders, remodelers and more from all over our state.”

The suit alleges the State Building Code Council approved the rules without legislative authority and in direct violation of the state’s Administrative Procedure Act. It further alleges the council ignored cost studies and feasibility reports in making its decisions. The state will have 20 days to file a response.

Costly and dangerous

The new rules have widespread impacts across many trades and industries.

BIAW surveyed its members to estimate the cost of these rules. Members reported the heat pump mandate would increase the cost of a newly constructed home by a minimum of $9,200, assuming builders take the lowest cost path to WSEC-R compliance and receive the tax rebate from the Inflation Reduction Act. While the mandate allows natural gas heat pumps, none are commercially available for residential customers.

Eastern Washington residents, who frequently lose power during frigid winter months, will be particularly hard hit. The rule allows natural gas of choice or necessity. That’s assuming a natural gas line is readily available for a new hookup.

Even if homeowners can absorb these added costs, supply chain, labor and various other challenges threaten to delay projects. Washington faces: n A shortage of compliant heat pump units and their components n Changes in refrigerant standards for heat pumps n A similar mandate for California in 2023 increasing demand for heat pump units

Coupled with a lack of skilled workers experienced in installing both required electrical appliances and the necessary energy infrastructure, the upcoming code implementation will be challenging, if not impossible.