The Cost of Enforcing Building Energy Codes: Phase 2

Abstract

The purpose of this study is to present key findings regarding costs associated with enforcing building energy code compliance-primarily focusing on costs borne by local government. Building codes, if complied with, have the ability to save a significant amount of energy. However, energy code compliance rates have been significantly lower than 100%. [See Williams et al. 2013 for summary.] Renewed interest in building codes has focused efforts on increasing compliance, particularly as a result of the 2009 American Recovery and Reinvestment Act (ARRA) requirement that states implement a plan to achieve 90% compliance by 2017 in order to receive additional energy grants (Public Law 111-5). 1 The U.S. Department of Energy (DOE) Building Energy Codes Program offers several tools and resources to address energy code compliance. 2 Although the incremental cost of the construction measures needed to comply with building energy codes has been well documented, particularly by the Building Codes Assistance Project (BCAP) (Pacquette, Miller, and DeWein 2011), the cost of enforcement and other activities that may improve compliance has received little attention. However, the estimated cost is thought to be significant. For example, one study by the Institute for Market Transformation (IMT) estimated the costs associated with reaching 90% compliance to be $810 million, or $610 million in additional funding over existing expenditures, a non-trivial value. 3 [Majersik & Stellberg 2010] In order to further inform a national dialogue about the investment needed to improve compliance with building energy codes, Lawrence Berkeley National Laboratory (LBNL) conducted a two-phase study to better pinpoint the costs of enforcement with a goal towards 100% compliance. Phase 1 was a literature review designed to identify the current breadth of information on compliance rates, barriers associated with non-compliance, strategies to overcome them, DOE and key stakeholder involvement in improving compliance, 4 and, in particular, the local government costs associated with energy code enforcement for residential and commercial buildings. Phase 1 was conducted in early 2013, and a report on the findings from that study was published in April 2013. [Williams et al. 2013] More than 150 documents that discussed code compliance and enforcement were reviewed. Costs 1 In Section 410, in order for states to receive additional energy grants, the states, or the applicable units of local government that have authority to adopt building codes, will implement "a plan for the jurisdiction achieving compliance with the building energy code or codes … within 8 years of the date of enactment of this Act in at least 90 percent of new and renovated residential and commercial building space. Such plan shall include active training and enforcement programs and measurement of the rate of compliance each year." 2 See www.energycodes.gov/compliance for more information. 3 IMT estimates the $810 million from the following components: 1) plan review and inspection cost...

The cost of enforcing building energy codes: an examination of traditional and alternative enforcement processes

“…However, many jurisdictions noted more extensive 4 While the phase 1 literature review covered over 150 documents, only 7 included specific time or cost information for traditional energy code enforcement activities (plan review and inspection) at the local level; these reports are all referenced in this paper. 5 Hours spent on meetings, paperwork, and so on not directly tied to energy code reviews and inspections 6 See Williams et al (2014) for a review of re-inspection rates in various jurisdictions. 7 Numbers in brackets indicate the number of experts reporting a response.…”

“…LBNL reviewed more than 150 documents that discussed code compliance and enforcement and published a report on the findings in April 2013 (Williams et al 2013). In phase 2, LBNL conducted a survey of experts knowledgeable about building code compliance and enforcement to develop an overall range of energy code enforcement costs borne by local governments and to identify more precisely the areas of focus for improving energy code compliance, including where money might be most effectively spent (Williams et al 2014). General experts were surveyed as a way of gaining a big-picture, often national perspective, while local experts were surveyed to gain information on experiences in specific geographic areas and to collect cost data associated with energy code enforcement.…”