The Inflation Reduction Act (IRA) is a game-changer in energy efficiency. The IRA is the largest federal climate change bill in U.S. history and was signed into law in August 2022. The IRA will include $369 billion in investments in climate and clean energy programs nationally over the next decade.
This legislation provides substantial funding to states that embrace the latest energy codes and creates a powerful incentive for the construction industry to prioritize energy-efficient and sustainable practices.
Key Highlights of IRA:
- Funding for Code Adoption: States that adopt the latest energy codes receive significant funding under the IRA. This financial support catalyzes the widespread adoption of energy-efficient practices in the construction sector.
- Energy Star Multifamily New Construction (MFNC) Expansion: The IRA extends funding for Energy Star Multifamily New Construction projects. This expansion provides developers with up to $2,500 in tax credits per apartment unit, encouraging the integration of energy-efficient technologies and practices.
- Emphasis on Indoor Air Quality and Energy Efficiency: Multifamily buildings stand to benefit from the IRA’s emphasis on both indoor air quality and energy efficiency. This dual focus ensures that construction practices align with holistic sustainability goals.
Complying with New Standards: IECC 2021 Requirements
The International Energy Conservation Code (IECC) 2021 introduces pivotal standards that shape the landscape of energy-efficient construction. Understanding and complying with these standards is essential for developers and builders seeking to capitalize on incentives and meet industry benchmarks.
Key IECC 2021 Requirements:
- ASHRAE 62.2 Ventilation Rates: Multifamily buildings must ensure that ventilation rates align with ASHRAE 62.2 requirements. This not only contributes to better indoor air quality but also positions projects for eligibility in various incentive programs.
- Verification of Installed Performance: To qualify for tax credits, verification of the installed performance of energy-efficient systems, including ventilation, becomes a critical step. This requirement underscores the importance of not just design intent but actual operational outcomes.
- Mandatory Use of ERVs in Some Climate Zones: IECC 2021 mandates the use of Energy Recovery Ventilators (ERVs) in certain climate zones. This recognition of ERVs as a vital component in energy-efficient ventilation strategies further incentivizes their adoption.
The Inflation Reduction Act and IECC 2021 provide a powerful incentive framework
for the construction industry. From funding for code adoption to specific requirements
promoting energy-efficient ventilation, these initiatives shape the trajectory of sustainable
and resilient multifamily building practices.
Delayed 2021 Building Codes planned to go into effect on March 15, 2024, in Washington State
Buildings in the state of Washington are responsible for 27% of the greenhouse gas emissions in the state. This is second only to transportation. Emissions from the building sector are growing even faster than transportation. The state has a two-pronged strategy to address building emissions. The first is to have buildings operating as efficiently as possible, and the second is moving toward electrification. As the state grid transitions to clean electricity, electrified heating devices will become the lowest carbon-emitting option. The Inflation Reduction Act included provisions related to energy efficiency, renewables, and conservation for existing buildings. There is $166 million available from the federal government and while funds for Washington state are expected to start coming in mid-2024, the timeline for all funds is through 2031. In the last legislative session, there was also $80 million authorized from the Climate Commitment account to pay for high-efficiency electrical equipment. The focus here will be on heat pumps and other high-efficiency technology. Between those two programs, there is about $225 million available to improve existing buildings in the state of Washington.
2021 Building Code Update
There are two energy codes in the state of Washington: One for residential buildings, multifamily structures under four stories, and single-family homes and one for multifamily four stories and above, and commercial. Energy code gets more stringent with each code cycle based on the Washington state goal of reducing energy use in new construction by 70% by the 2030 code cycle. The 2021 building code was supposed to go into effect last July however it was delayed and revised due to a lawsuit brought against the State Building Code Council. The 2021 code as it was originally drafted, said you couldn’t use gas water heaters or furnaces anymore, and instead, you would need to use a heat pump. The new update to the Washington State 2021 Energy Code includes the use of gas appliances but the law states that site energy is the metric building codes should use. So, in effect, the changes were made to allow the use of fossil fuel appliances however it will still require the same level of efficiency as if you use a heat pump. Energy savings will likely have to be made up somewhere else if you choose fossil fuel appliances instead of heat pumps. The revised 2021 code is planned to go into effect on March 15, 2024.