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There is no anticipated change to the nature and estimated cost of any legal, consulting, or accounting services that
small businesses would incur in complying with the proposed changes to the rules.
24. Estimate the ability of small businesses to absorb the costs without suffering economic harm and without
adversely affecting competition in the marketplace.
It is likely that any increase in cost will be passed along from the small business engaged in the existing structure
construction project to the owner contracting for the project. Owners will incur upfront, higher costs, but these
expenses will be offset by the long-term financial savings because of this rule set. It is assumed all builders who are
small businesses pass the costs along to the building owner; therefore, competition would not be impacted.
25. Estimate the cost, if any, to the agency of administering or enforcing a rule that exempts or sets lesser
standards for compliance by small businesses.
There are no rules that exempt or set lesser standards for compliance by small businesses. If the agency were to
administer or enforce a rule that exempted or set lesser standards for compliance by small businesses the agency
would incur some cost in training of inspection staff. Based on the current number of staff who would need to be
trained, the estimated cost would be approximately $2,195.00 (average of $43.90 per hour times for 50 people).
26. Identify the impact on the public interest of exempting or setting lesser standards of compliance for small
businesses.
There is no public interest at play as it relates to exempting standards of compliance for small businesses. To
maintain the integrity, security, and fairness of businesses conducted in Michigan, all businesses must be held to the
same compliance, and exempting small businesses or setting lesser standards of compliance is not an option for fair
and equal businesses practices. The code is applied uniformly across the state to ensure all jurisdictions are providing
for the health, safety, and welfare of the public. Setting lesser standards of compliance for small businesses would
negatively impact the safety of structures rehabilitated by the small businesses and therefore the occupants of those
structures.
27. Describe whether and how the agency has involved small businesses in the development of the proposed rules.
The agency involved small businesses through the Code/Rule Change Proposal Form, and rules review committee
process.
A. If small businesses were involved in the development of the rules, please identify the business(es).
The agency received no code/rule change proposal form from any small business participation on the committee
included plumbing, electrical, and mechanical contractors, building inspectors, residential builders, energy rating
companies, professional engineers, small home, and residential builders.
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 was able to determine variables to estimate compliance costs utilizing the PNNL Cost-Effectiveness of
ANSI/ASHRAE/IES Standard 90.1-2019 for the State of Michigan. In particular, the size of the existing structure, or
its renovation, will dictate the ultimate expenses to the business or groups. Additionally, inflationary costs and
specific material selections, will factor into the expenses for the businesses or groups. The impact of these proposed
rules will be directly correlated to the size of the existing structure, or renovation, a business or group chooses to
design. The larger the square footage of the existing structure or renovation, the higher the material costs and other
associate expenses will incur. Any business or group already established in a preexisting structure or moves into a
preexisting structure will derive no impact by these proposed rules. Businesses or groups will incur upfront, higher
costs, but these expenses will be offset by the long-term financial savings because of this rule set. Overall, the agency
has no way of knowing what the additional specific expenses will be, as each individual structure will be unique to
the needs. The following are impacts due to the proposed rules, but are not limited to the list below:
ANSI/ASHRAE/IES Standard 90.1-2019 will provide an annual energy cost savings of $0.063 per square foot on
average across the state. In 2023, the state issued 2,021 permits applying to approximately 3,279,540 square feet. As
the state is the permitting authority for approximately 3% of the municipalities in the state, it is assumed the
statewide number of permits is approximately 67,367 applying to approximately 109,318,000 square feet. The
estimated annual energy cost savings for these projects under the proposed rules equates to $6,887,034.
MCL 24.245(3)