Hi everyone, it is time for everyone's favorite update – policy. There’s been plenty of movement the last several months, so we will jump right in with a rundown of recent activity.

Massachusetts

As noted in an earlier update, the Department of Energy Resources in Massachusetts finalized the new opt-in stretch code. Among the several improvements, the new opt-in stretch code requires that any Group R building that is over 12,000 square feet in area must meet Phius or another passive house standard. Over the last few months, 18 cities have adopted this new energy code including Boston, Cambridge and Somerville. The 18 cities make up approximately 20% of the state's population. Based on construction activity from recent years, more than 100 projects in these cities will meet the criteria mentioned above in one year. 

On a related note, the Home Builders And Remodelers Association of Massachusetts commissioned a report by the MIT Center for Real Estate on the possible incremental costs of the new opt-in code. Among its findings, the report calculated a small 2.4% incremental cost over code for Phius multifamily projects, which is consistent with results from studies by the Massachusetts Clean Energy Center. Moreover, the report emphasized that incremental costs were temporary and costs will inevitably drop once the industry adapts to the new energy code. This means that within a very short time (evidence from work with the Pennsylvania Housing Finance Agency indicates about 2-3 years), the incremental cost will vanish and multifamily projects will get built to the Phius standard without costing any more than it does now. 

Minnesota

The Department of Labor and Industry in Minnesota (the department in charge of code updates) has constituted a Technical Advisory Group (TAG) to help with the upcoming update of the residential energy code. Members of the Phius Alliance in Minnesota are included in the TAG. One of the duties of the TAG will be to review amendments submitted by the public. Phius plans to suggest the inclusion of a Phius alternative compliance path. If accepted, the new code requirement would mesh with the new Low Income Housing Tax Credit incentives laid out in the Minnesota Qualified Allocation Plan

Maine

Apparently, only states starting with the letter ‘M’ will be included in this update (and sorry, no news from Mississippi). Legislation was enacted by the Maine Legislature (L.D.1656) on May 3. This law requires that new construction funded by the Maine State Housing Authority meet either the “passive house” standard, a living building standard or a national green standard. Moreover, the new construction will be required to be all-electric. The new law is currently in the rulemaking process. The requirements go into effect on Jan. 1, 2024.

Check back soon for more updates, as we continue working to promote adoption of the Phius standard through policy.