Chicago Adopts Ambitious Energy Transformation Code to Combat Climate Change

Strategic Insights -

The City Council of Chicago passed the 2022 Chicago Energy Transformation Code, making it one of the first major U.S. cities to adopt and exceed the 2021 edition of the International Energy Conservation Code (IECC), a widely used model code. This new code aims to reduce the city's carbon footprint by increasing energy efficiency and sustainability in its building stock. The code will result in an approximately 40% improvement in energy efficiency for residential and commercial buildings compared to the 2001 ordinance, and will also incentivize the use of equipment types and energy sources that reduce greenhouse gas emissions.

Key Takeaways:

  • The 2022 Chicago Energy Transformation Code exceeds the 2021 IECC baseline and will result in a 40% improvement in energy efficiency for residential and commercial buildings.
  • The code requires placement of windows in new buildings to minimize energy demands due to solar heat gain in summer and requires new low-rise commercial buildings to be designed with solar panels in mind.
  • The code incentivizes the use of smart heating, cooling, and hot water equipment that is integrated with the electric grid to reduce demand during peak usage.
  • Chicago will be among the first to apply for $1 billion in federal financial assistance from the Inflation Reduction Act to support local training and enforcement activities.
  • Homeowners and businesses who build under the Energy Transformation Code will be eligible for energy efficiency rebates and tax credit programs.
  • The new code recognizes two rigorous building certification programs as alternative ways to comply: the 2021 Phius standard and the gold and emerald certification levels under the 2020 National Green Building Standard (NGBS).
  • The Department of Buildings will work with the design and construction industry to implement the new code and provide training on the requirements.

Statistics:

  • The 2021 IECC represents a 9.4% site energy savings improvement and an 8.7% improvement in carbon emissions for residential buildings relative to the 2018 IECC.
  • The 2021 IECC is estimated to result in a 5% energy savings for commercial buildings relative to the 2018 IECC.
  • Chicago's new Energy Code will save energy and reduce the carbon footprint for both residential and commercial buildings.
  • The U.S. Department of Energy estimates that the 2021 IECC will save homeowners an average of $2,320 over the life of a typical mortgage.

Sources:

  • The office of the Mayor of Chicago
  • The International Energy Conservation Code (IECC)
  • The Inflation Reduction Act
  • The U.S. Department of Energy
  • The Smart Energy Design Assistance Center (SEDAC)
  • The National Green Building Standard (NGBS)
  • The Phius 2021 Standard