The 2021 International Energy Conservation Code (IECC) sets minimum efficiency requirements for buildings to ensure energy use and emissions reductions over their life span. The code’s stated goals are to improve energy efficiency by 9.4% and to reduce greenhouse gases by 8.7% over the previous code (the 2018 IECC). The code went into effect in Illinois on January 1, 2024, requiring any commercial or residential building projects applying for a permit on or after that date to comply.
Paths to compliance
Given the complexity of previous IECC codes, it’s worth highlighting that while design teams could previously adopt either a performance or prescriptive compliance approach, each of which has its own set of pros and cons, there are now additional performance-based approach alternatives with the 2021 update for project teams to consider.
As the name suggests, a prescriptive model prescribes specific energy-efficient criteria building products and systems must meet, which makes compliance relatively easy and assured. As easy as it is, though, adhering to a prescriptive model somewhat limits design creativity and innovation, and checking boxes can result in missed opportunities for energy and cost savings.
Jim Caesar, Regional Vice President, The Opus Group
Following a performance model approach, a specific energy usage target is established for the entire building rather than using prescriptive criteria for each of its individual components, which gives builders more flexibility and creativity in designing energy efficiency into the building as a whole. This approach takes an iterative design process with input from many stakeholders to land on the right solution that maximizes efficiencies while minimizing first costs. The risk to builders with this performance approach is that it adds complexities and uncertainty during the design process.
With the 2021 code update and the added performance-based approach paths to consider when estimating a building’s future energy usage, the enhanced flexibility also elevates the complexities of the design process. The added design costs and time associated with going the performance-based route can be easily negated with construction cost savings found (over a prescriptive path) when a smart design solution is achieved, but finding the most advantageous design path will be the challenge in the near future as design teams wrestle with the new provisions of the code. Additionally, a building must actually reach its performance target to be compliant with the new measurement requirements, and while calculations and modeling can predict energy efficiency, workmanship or material quality issues and other real-life factors can derail a great plan once into construction phase.
Core focus areas
The 2021 IECC elevates expectations for numerous construction and design elements of new multifamily buildings from the previous IECC code, largely relating to energy efficiency, energy metering and monitoring, electric vehicle charging infrastructure, HVAC performance, air quality, and general testing and performance verification. These provisions can be categorized into three main areas.
- Building Envelope
The building envelope plays a key role in protecting and controlling a building’s interior climate through air, water, heat, and condensation exchange and, as such, impacting its energy efficiency. The 2021 IECC includes new requirements and provisions specific to insulation, air leakage, and interlocking operable openings.
- Mechanical Systems
Mechanical systems are largely responsible for providing a comfortable, safe, and livable indoor environment and include everything from plumbing to HVAC to ventilation. The 2021 IECC has new provisions in the areas of HVAC fault detection and diagnostics, outdoor air energy recovery ventilation, and fan efficiency.
- Electrical Systems
A building’s electrical systems support power distribution, fire alarms and security, communications and data handling, lighting, and more. New requirements with the 2021 IECC include energy consumption monitoring, automatic receptacle controls, requirements for EV infrastructure, improved lighting efficacy, and reduced lighting power.
Challenges for multifamily developments
While it’s difficult to argue against protecting the environment, pursuing sustainable building practices, and designing high-performing buildings, the timing of Illinois’ adoption of the 2021 IECC on multifamily construction presents a number of challenges to addressing our national housing shortage problem.
According to Freddie Mac estimates, the U.S. has a 3.8-million-unit housing shortage. Typically, multifamily housing, because it is more efficient and cost-effective to develop than single-family housing due mostly to economies of scale and shared building resources, is an obvious solution to addressing the housing shortage and increasing availability where it’s needed most. But, like the rest of the housing industry, multifamily housing continues to face ongoing supply chain issues, labor shortages, hyper-inflation, and still higher than recent historical interest rates. In Illinois and the 22 other states who have adopted IECC 2021, these challenges are now compounded by the not insignificant costs associated with the more stringent codes stemming from adoption of the 2021 IECC – costs that are often difficult to pass on to perspective tenants or buyers.
Collectively, all of these forces are working against ending the U.S. housing shortage, and the Midwest is proof positive. U.S. Census Bureau and Department of Housing and Urban Development data from July shows that the annual rate for multifamily permitting in the Midwest decreased by 16.3% to 53,000 units, and multifamily starts in the Midwest were down 33.3% to 33,000 units.
Moving multifamily housing forward
The fact of the matter is that someone always has to make the first move – despite uncertainty as to how the 2021 IECC will be interpreted and enforced at the state, county and municipality level, and despite uncertainty as to the most cost-effective way to meet the new minimum standards. Owners will recognize that most updates in the 2021 IECC code are likely to pay them financial dividends in the long run as the new requirements translate into reduced operating costs or better living environments. Builders will identify the most efficient ways to accommodate the new code requirements. Those first cost premiums associated with these new requirements will moderate. And, with the eventual moderation of the other contributing factors which are stalling the industry, multifamily housing development in Illinois will once again regain its footing.
Jim Caesar is a Regional Vice President with The Opus Group, a family of commercial real estate development, construction and design companies headquartered in Minneapolis with offices and projects across the country. He has 22 years of industry and is responsible for Opus’ construction operations in Chicago and Milwaukee.
