13. Estimate any increase or decrease in revenues to other state or local governmental units (i.e. cities, counties,
school districts) as a result of the rule. Estimate the cost increases or reductions for other state or local
governmental units (i.e. cities, counties, school districts) as a result of the rule. Include the cost of equipment,
supplies, labor, and increased administrative costs in both the initial imposition of the rule and any ongoing
Local jurisdictions with administrative enforcement of the code may incur some cost in training of inspection staff.
The agency has no way of knowing what the additional specific expenses will be, as each individual structure will be
unique to the needs of the governmental unit. However, when construction is up in general, there will be increased
revenue from permits, (re)inspections, and plan reviews. The construction market is subject to numerous outside
influences such as: material costs, labor costs, and interest rates. Overall, a person must review expenses for the
project and decide if costs match budget. There will be an increase in upfront costs for materials for alterations,
renovations, or building of a new structure.
14. Discuss any program, service, duty, or responsibility imposed upon any city, county, town, village, or school
district by the rules.
It is anticipated that a local government unit would incur added responsibility due to the proposed rules if a local unit
of government has decided to administer and enforce the code under the Stille-DeRossett-Hale Single State
Construction Code Act. They would be responsible for learning, understanding, and applying the new code
accurately. However, no additional program, service, duty, or responsibility will be imposed on any city, county,
town, village, or school district by the rule changes.
A. Describe any actions that governmental units must take to be in compliance with the rules. This section should
include items such as record keeping and reporting requirements or changing operational practices.
The proposed rules would require additional or new responsibilities on behalf of governmental units to be in
continued compliance with the rules. They would be responsible for learning, understanding, and applying the new
code accurately, which would require training of all applicable staff.
15. Describe whether or not an appropriation to state or local governmental units has been made or a funding
source provided for any additional expenditures associated with the proposed rules.
No additional appropriations for additional expenditures associated with the proposed rules have been made to state
or local governmental units. However, $1.2T in federal grant programs through the Bipartisan Infrastructure Law
and/or the Inflation Reduction Act are available to states, local governments, and other organizations contingent upon
the adoption of the 2021 IECC.
16. In general, what impact will the rules have on rural areas?
The proposed rules affect the state of Michigan as a whole. There is no specific rural impact, rules are applicable to
both urban and rural new build structures alike. Where allowed under the Stille- DeRossett-Hale Single State
Construction Code Act, there continue to be limited agricultural exemptions under the applicable construction codes.
Therefore, there is no specific rule impact as these rules are applicable to urban and rural new building structures
A. Describe the types of public or private interests in rural areas that will be affected by the rules.
Pursuant to the Stille- DeRossett-Hale Single State Construction Code Act, there is an agricultural exemption to the
applicability of the construction codes from permits and inspections for those reasons; however, any structures not
falling under the agricultural exemption, would still need to follow the code. It is unlikely that the proposed rules will
have any impact on public or private interests in rural areas.
17. Do the proposed rules have any impact on the environment? If yes, please explain.
As cited in PNNL Cost-Effectiveness Analysis of the 2021 IECC for the State of Michigan, it is expected with the
adoption of the 2021 IECC during the first year alone, collectively, Michigan residents could expect to save over
$7,229,392 in energy costs and 44,850 metric tons in avoided CO2 emissions.