AIA Indiana Legislative E-Newsletter 
2010 Indiana Energy Conservation Code Set to Expire on January 1, 2017, Unless...
by Dan Overbey, AIA
December 21, 2016

The 2010 Indiana Energy Conservation Code (2010 InECC) could expire on January 1st, 2017. See today's Indianapolis Business Journal article: Pence could leave state with no energy standards for buildings
 
How Could this Happen?
Title 13, Article 14, Chapter 9.5, Section 2 of the Indiana Code ( IC 13-14-9.5-2) states:
 
Sec. 2. (a) Except as provided in subsection (b) or section 1.1 of this chapter, an administrative rule adopted under IC 13-14-9 expires January 1 of the seventh year after the year in which the rule takes effect, unless the rule contains an earlier expiration date. The expiration date of a rule under this section is extended each time that a rule amending an unexpired rule takes effect. The rule, as amended, expires on January 1 of the seventh year after the year in which the amendment takes effect.
 
Governor Pence could issue an executive order to extend it for one year. Per Section 9.5 of the same chapter (IC 13-14-9.5-5):
 
Sec. 5. If a rule is not readopted and the governor finds that the failure to readopt the rule causes an emergency to exist, the governor may, by executive order issued before the rule's expiration date, postpone the expiration date of the rule until a date that is one (1) year after the date specified in section 2 of this chapter.
 
However, even this would be a temporary fix. Even if the executive order were to occur, the state would need to re-adopt an energy code again by the end of 2017.
 
How did we get to this point?
Codes Can Expire
Code expiration is not new. The outdoor event equipment rule expired last year. The plumbing code could expire at the end of 2018. Codes can be readopted, but the 2010 Indiana Energy Conservation Code re-adoption process was halted this Fall when the code was separated from the standard rule re-adoption process. That action means that Indiana's current energy code cannot be re-adopted by the Fire Prevention and Building Safety Commission. Therefore, it will expire. Adoption of a new energy code cannot be completed prior to expiration due to a moratorium on new regulations and the fiscal impact rules. But here is the catch: after expiration, the fiscal impact laws could effectively prevent adoption of a new energy code as the fiscal impact will be measured against no code being in effect.
 
If an executive order extends the energy code by one year, it would give the commission a chance to adopt a new code before the one expires - and the fiscal impact would be measured against the current energy code (based on ASHRAE Standard 90.1-2007)
 
Why is an Energy Code Important?
Having an energy code has the following economic impacts:
 
*Saves building owners money. An energy code sets a minimum standard for energy efficiency for buildings. Buildings constructed to meet a minimum standard through an energy code use less energy, which reduces utilities bills - and puts money back into individuals' and companies' pockets.  According to the U.S. Department of Energy in an Indiana DOE Determination Letter (May 31, 2013) Energy cost savings for Indiana resulting from the state updating its commercial and residential building energy codes in accordance with federal law are significant, estimated to be on the order of nearly $240 million annually by 2030.
 
*Long-term economic resilience. The energy code serves as a de facto form of consumer protection in that if something is a new build, a consumer can expect it will perform to a certain level of expectation in terms of comfort and energy costs. With the uncertainty of long-term energy costs, an energy code better ensures that the state is safeguarded against a potentially-devastating economic hardship should energy costs rise considerably.
 
*Increases grid reliability. Most buildings waste energy to some degree, which strains power production capacity and puts increasing stress on the utility grid. Buildings held to a standard by an energy code support grid reliability and support making utility bills more predictable.
 
*There are considerable potential environmental benefits to establishing a standard for energy conservation in our buildings.
 
*Bad Precedent. Finally, allowing the 2010 Indiana Energy Conservation Code to expire sets a bothersome precedent to allow the systematic expiration of other building-related codes in Indiana. Once a rule has expired it cannot be readopted. The rulemaking process has to start all over.
 
Bottom Line
Governor Pence has the power to grant a one-year extension of the current energy code by executive order, which would give the Fire Prevention and Building Safety Commission a chance to adopt a new energy code before the current one expires.
 

Do not hesitate to contact AIA Indiana Executive Director Jason Shelley, jshelley@aiaindiana.org, 317-634-6993, if you have questions or concerns.
The 2017 session of the Indiana General Assembly begins January 4, 2017. Use your clout and support your profession by attending an "AIA Indiana Day at the Statehouse." This is a unique opportunity for you to learn firsthand about the key AIA state legislative and regulatory issues and become a lobbyist for day. You will be able to directly impact the legislative process by meeting with your state legislators and discussing the issues important to architects. Current dates available are: January 4, 5, 10, or 11. Please choose a date and RSVP to AIA Indiana Executive Director Jason Shelley, jshelley@aiaindiana.org, 317/634-6993. The day will begin at 12 p.m. with lunch and end no later than 3 p.m. A unified voice is vital. Don't wait to get involved!
Lobbying Basics for Communicating with Your Local Legislators 

*Please contact your state senator and state representative and introduce yourself, if you don't already know them. Invite them to tour your firm. Discuss with them the issues that are important to you and your firm. I am sure they will appreciate hearing from you. To contact your legislators, see the information below.
 
House of Representatives - 800/382-9842
State Senate - 800/382-9467
 
AIA Southern Indiana members meeting with Rep Ed Clere (R - New Albany), Sen. Ron Grooms (R - Jeffersonville) and Rep Steve Stemler (D - Jefferonville) at Kovert Hawkins Architects' office in Jeffersonville, IN. 

*Take a personal inventory of how you know legislators with whom you have a personal relationship (political or civic activities, church, business relationships, etc.)
 
*If you are having an open house, or important press release or ribbon cutting event, add your local legislators to the mailing list.
 
*Ask legislators and other elected officials to attend local AIA chapter meetings.
 
*Invite your local legislators to visit your firm.
 
*Invite your local legislator to lunch or coffee.
 
Do not hesitate to contact AIA Indiana Executive Director Jason Shelley, 317/634-6993 or jshelley@aiaindiana.org , if you have any questions.
Architects for Indiana Political Action Committee 

Please contribute to the Architects for Indiana Political Action Committee (ARCHPAC).  The importance of our participation in the political process becomes evident each time we must take action to cope with legislative proposals that call for extending the sales tax to services, requiring stock school plans, or providing interior designers stamping privileges!  
 
Please join many of your fellow Hoosier AIA members who have already contributed and write a $50 check today to ARCHPAC and return it to AIA Indiana, 115 W. Washington St., Suite 955 S, Indianapolis, IN 46204.
AIA Indiana | 317-634-6993 | jshelley@aiaindiana.org | www.aiaindiana.org
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