N.Y. Comp. Codes R. & Regs. tit. 21 § 510.3

Current through Register Vol. 46, No. 51, December 18, 2024

Section 510.3 - Life-cycle Cost Analysis of Energy Code Updates

(a) Life-cycle costs of an Energy Code update for commercial buildings will be analyzed by using the methodology for determining life-cycle cost net present value of savings established in the DOE Commercial Methodology, as incorporated by reference in section 510.7 of this Part and as modified in this section for New York State. Life-cycle costs of an Energy Code update for residential buildings will be analyzed by using the methodology for life-cycle costs established in the DOE Residential Methodology, as incorporated by reference in section 510.7 of this Part and as modified in this section for New York State.

(b) Building Energy Use Evaluation. For both commercial and residential buildings, whole building simulation will be used to calculate annual energy consumption for the duration of the study period for relevant end uses of buildings with construction starts that fall within a three-year period commencing on the effective date of an Energy Code update.

(1) Building Prototypes. Prototype building models developed by DOE under the Building Code Energy Program will be selected as follows:

(i) Commercial prototype building models. DOE commercial prototype building models will be modified as necessary to align with the anticipated predominant new construction system and equipment parameters in New York State. A minimum of 5 prototypes will be selected to represent not less than 75% of new construction starts by floor area in New York State.

(ii) Residential prototype building models. DOE residential building prototypes will be modified as necessary to align with anticipated predominant new construction system and equipment parameters in New York State.

(2) Building Model Cases. Two cases for each prototype building model will be analyzed. One model case will be a building that complies with the current Energy Code and other legal requirements, including Energy Law section 11-104(6) and Executive Law section 378(19); the other model case will be an otherwise identical building that complies with the proposed Energy Code update and other legal requirements, including Energy Law section 11-104(6) and Executive Law section 378(19).

(i) Prototype building model cases will be configured to use typical and financially reasonable design parameters of each of the two cases.

(ii) Prototype building model components that are unchanged by a proposed Energy Code update are identical in prototype building model cases.

(3) Climate Zones. Each selected prototype building model will be simulated in each New York State climate zone, weighted by anticipated percentage of statewide new construction starts, to estimate the overall state average energy impact of the proposed Energy Code update. The calculated statewide impact will be weighted to account for both climate zone and building type specific differences in new construction that may be affected by the proposed Energy Code update.

(c) Costs

(1) Energy Prices. Retail energy prices will be based on the most recently-available New York State commercial or residential energy prices as of the date the analysis is performed, derived from public sources, which shall include, when available, reporting sources maintained by a federal or New York State entity authorized by law to report such information and/or an investor-owned public utility. Energy prices for delivered fuel will be based on weighted average delivered fuel cost derived from an estimate of fuel use by type in New York State. Energy prices will be escalated in accordance with the methods in this subdivision.

(i) Energy Price Escalation. Energy price escalation rates will be based on the projected change in energy costs in New York State. Energy price escalation values will be derived from public sources, which shall include, when available, reporting sources maintained by a federal or New York State entity authorized by law to report such information, the New York Independent System Operator (NYISO), and/or an investor-owned public utilities and may use a combination of projections for the near term such as published investor-owned public utility sources. For purposes of this section, contemporaneous information reported in the U.S Department of Energy's Energy Information Administration regarding Short Term Energy Outlook and Annual Energy Outlook, and/or NYISO System & Resource Outlook may be used.

(ii) Energy Price Weighting by Climate Zone. When available, energy prices may be calculated using weighted energy prices, by climate zone, to better account for the variability of energy prices throughout the different regions of New York State. Climate zone specific energy prices are calculated by weighting the delivered energy and energy cost of utilities serving the different New York State climate zones.

(2) Effective Useful Life. The effective useful life of equipment and systems will be determined in accordance with Appendix P of the TRM, as incorporated by reference in section 510.7 of this Part. If equipment or material is not listed in the TRM, or if the value in the TRM is unreliable, an alternative source may be used. If a source alternative to the TRM is used, the source and effective useful life will be cited in reporting.

(3) Labor and Material Costs. Labor and material cost estimates will be adjusted for Albany, Buffalo, and New York City in accordance with the DOE Commercial Methodology and the DOE Residential Methodology, which are incorporated by reference in section 510.7 of this Part.

(4) Property Tax. Property tax will not be included in life-cycle cost analysis.

(d) Life-cycle Cost of Energy Code Updates for Commercial Buildings.

(1) Ownership Scenarios. Life-cycle costs for commercial buildings will be analyzed in accordance with the DOE Commercial Methodology for privately owned buildings, as incorporated by reference in section 510.7 of this Part.

(2) Maintenance Costs. If data is publicly available to support estimating maintenance costs, weighted by New York State climate zones, this level of analysis will be performed.

(3) Loan Interest Rate. Loan interest rate will be determined based on the most recent commercial loan rates when the analysis is performed for New York State as applied in the DOE Commercial Methodology, as incorporated by reference in section 510.7 of this Part.

(4) Income Tax Rate. The income tax rate will be equal to the combined federal and New York State corporate income tax rates in effect for the reporting year in which the evaluation is performed.

(5) Aggregating Results. The results will be aggregated using average weighting factors based on the most recent as of the date the analysis is performed New York State-derived disaggregated construction volume data. For purposes of this section, data obtained from Dodge Data & Analytics Construction Projects Starts Database, or equivalent commercially available a source, shall been deemed sufficient.

(e) Life-cycle Costs of Energy Code Updates to Residential Buildings

(1) Mortgage interest rate. The mortgage interest rate will be based on the ten-year historical average of a conventional 30-year real estate loan in New York State.

(2) Loan Fees. Loan fee values will be based on most recent New York State data as of the date the analysis is performed from a credible source such as the Freddie Mac Weekly Primary Mortgage Market Survey.

(3) Aggregation across foundation types. The results will be aggregated across foundation types using average weighting factors based on the most recent New York State-derived data as of the date the analysis is performed.

(4) Aggregation across Heating Equipment Types. The results will be aggregated across heating equipment types using average weighting factors based on the most recent New York-State-derived data and statutory requirements as of the date the analysis is performed.

(5) Aggregation across Building Type. The results will be aggregated across building types using average weighting factors based on the most recent census data for New York State or the best available New York State market data as of the date the analysis is performed.

(f) Statewide Life-cycle Costs. The statewide life-cycle cost will be the weighted sum of both the residential and commercial life-cycle cost analyses performed in accordance with this section. Weighting will be based on the estimated proportion of new construction starts during the three-year period commencing on the estimated effective date of an Energy Code update.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 510.3

Adopted New York State Register June 18, 2024/Volume XLVI, Issue 25, eff. 6/18/2024