White House to Address Climate Priorities Through Energy Code Implementation

On Tuesday, June 22, 2023, the Biden-Harris Administration announced requirements for housing supported or assisted by the U.S. Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA) and the United States Department of Agriculture (USDA) as part of President Biden’s Investing in America agenda.  

At the forefront of the agenda, the agencies propose to adopt the latest building energy codes to improve the performance and efficiency of new homes and help homeowners and renters save money on energy costs. The President’s Investing in America agenda seeks to incorporate climate risk and mitigation into federally supported housing.

Resilient Buildings Through Implementing Energy Codes and Standards

HUD, FHA and USDA propose to adopt and require the 2021 International Energy Conservation Code® (IECC) for low-density residential construction and ASHRAE 90.1-90.1 for multi-family housing. Implementation of the latest energy codes provides communities with the tools to build and retrofit housing to be safe, resilient, healthy and efficient structures that are powered by clean energy and constructed with low-carbon materials.  

HUD estimates that building homes using the latest energy codes will save homeowners 35 percent on energy costs. These actions build upon President Biden’s National Initiative to Advance Building Codes, which supports modern building codes and standards that save lives, reduce property damage and cut utility bills. 

If implemented today, the proposed requirements could impact a total of approximately 168,000 new housing units each year. HUD estimates that the adoption of the latest energy codes will save homeowners and renters an estimated $74 million per year and generate an estimated carbon emissions reduction of 2.2 million metric tons which would yield an additional societal cost savings of $79 million over 30 years.  

On a life-cycle basis, building new single-family homes to the 2021 IECC will yield a Life Cycle Cost savings benefit of $14,500 on a typical 30-year mortgage. The proposed requirements are subject to public comment with finalization anticipated for late 2023 or early 2024. To learn more about the anticipated impacts of the requirements, visit HUD’s preliminary determination page. 

Code Council in Action 

To highlight the role that buildings play in meeting community energy and greenhouse gas (GHG) reduction goals and the power of energy codes in helping meet those goals, the International Code Council launched the Code on a Mission challenge in 2021. The challenge aims to get over a third of the U.S. population (115 million Americans) covered by energy codes that meet or exceed the 2021 IECC by the end of 2023. The Code Council is roughly two-thirds towards their target, with over 77 million Americans covered by the 2021 IECC or equivalent. 

Implementation of the 2021 IECC is foundational to achieving energy savings and reductions in GHG emissions across the building stock. The 2021 IECC is particularly impactful as the U.S. Department of Energy (DOE) found that it provides a 9.4 percent improvement in energy savings and an 8.7 percent reduction in GHGs for low-rise residential buildings over the 2018 edition — a nearly 40 percent improvement since the 2006 edition. The 2021 IECC saves homeowners an average of $2,320 over the life of a typical mortgage. If all states updated to the 2021 IECC, nationally over 22,000 jobs would be created in the first year and over 632,000 jobs cumulatively over 30 years. 

In addition to the energy efficiency improvements, the 2021 IECC contains updated provisions that improve usability and support communities interested in pursuing zero-energy buildings through new appendices. Communities that regularly adopt the IECC, save money for residents and businesses and improve community health and resilience.  

The Code Council has developed a suite of resources in support of the Code on a Mission challenge to assist jurisdictions in their efforts to adopt updated energy codes.