RIS-Page 6
Cost-Benefit Analysis of Rules (independent of statutory impact)
28. Estimate the actual statewide compliance costs of the rule amendments on businesses or groups.
The agency is unable to estimate compliance costs due to many variables, which are at the discretion of a small
business. In particular, the size of the new build structure or its renovation will dictate the ultimate expenses to the
small business. Additionally, inflationary costs and specific material selections will factor into the expenses for the
small business. Groups will not be impacted with the rule amendments.
A. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the
proposed rules.
The businesses and groups who will be directly affected by our proposed rules are those entities who either build a
new structure or renovate an existing structure to work in or renovate an existing structure. Also, contractors will be
affected by these proposed rules because they will be hired to construct pursuant to the new energy requirements. The
businesses or groups who will directly benefit from the proposed rules will be the individuals producing the energy
products and commercial and residential contractors because they will be able to profit through the hired work to be
performed based upon the new energy code requirements. Additionally, structure owners will realize an energy costs
savings long-term, as these standards are implemented through new build or renovations. The individuals who will
build a new structure or renovate an existing structure will bear the cost of the new standards.
B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses
and groups. Be sure to quantify how each entity will be affected.
The agency is unable to estimate costs due to many variables which are at the discretion of a business. In particular,
the size of the new build structure or its renovation will dictate the ultimate expenses to the business. Additionally,
inflationary costs and specific material selections will factor into the expenses for the business. Groups will not be
impacted with the rule amendments.
29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or
the public). Include the costs of education, training, application fees, examination fees, license fees, new
equipment, supplies, labor, accounting, or recordkeeping.
In regard to the regulation of individuals, the agency is unable to determine what compliance costs they may incur. If
a building official takes an energy code continuing education course from the agency, it will cost the regulated
individual zero dollars. On the other hand, for profit companies could offer the same energy code continuing
education course for a fee. If the regulated individual chooses to take the for-profit code continuing course the agency
would not know what that compliance cost would be to the regulated individual. The agency leaves it to the
discretion of the regulated individual to choose how they obtain their training. As for the public, the agency is unable
to estimate costs due to many variables, which are at the discretion of an individual. In particular, the size of the new
build structure or its renovation will dictate the ultimate expenses to the individual. Additionally, inflationary costs
and specific material selections will factor into the expenses for the individual.
A. How many and what category of individuals will be affected by the rules?
It is anticipated that roughly 100,000 plus skilled trades licensees and other regulated individuals (including
architects and engineers) will benefit from these proposed rules, but only when new build structures or renovations
are contracted for.
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?
The quantitative impact will be unknown as the agency is unable to estimate costs due to many variables, which are
at the discretion of the individual. In particular, the size of the new build structure or its renovation will dictate the
ultimate expenses to the individual. Additionally, inflationary costs and specific material selections will factor into
the expenses for the individual. The qualitative impact to the individual will result in a cost savings in the long-term.
30. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result
of the proposed rules.
The cost reductions will depend upon if the individual, business, group of individuals, or governmental units build a
new structure or renovate an existing structure where they are located. If the aforementioned groups stay within their
existing building and never make changes to said building they will neither incur costs nor realize savings based on
this new set of rules.
MCL 24.245(3)