KCI Insights: What Building Owners Need to Know about Changing Energy Codes

If you’re planning a building renovation, system replacement, or new facility, you’ve likely heard more discussion about energy codes in the past few years than ever before.

These regulations are evolving rapidly as states, cities and communities seek to improve energy efficiency, lower building operating costs, and reduce environmental impacts. While the goals are straightforward, the effect on building projects can be significant, influencing everything from design decisions and equipment selection to construction budgets and long-term facility operations.

For building owners, the questions are often the same:

• Will new energy codes increase project costs?
• Will I need to replace more than I originally planned?
• How will these requirements affect future operations?
• What decisions should I make now to avoid costly changes later?

The answers depend on your facility, your location, and your long-term goals. Understanding both the requirements and the opportunities created by today’s energy codes is essential to making informed planning decisions.

Why Energy Codes Can Be So Confusing

One of the biggest misconceptions about energy codes is that they are consistent everywhere. In reality, there is no single energy code adopted nationwide.

Organizations such as the International Code Council (ICC) and ASHRAE develop model energy standards and codes, but states and local jurisdictions determine which editions to adopt and when to implement them. As a result, projects in different cities or states may face entirely different requirements despite having similar building types and uses.

For owners with facilities in multiple locations, these differences can create unexpected complexity. A system design that complies with the code in one jurisdiction may require substantial modifications in another. Understanding local requirements early in the planning process can help avoid redesigns, delays, and budget impacts later in the project.

Compliance Is Just the Starting Point

Many people think of energy codes as a checklist of minimum requirements. In reality, energy codes often influence decisions that affect a facility for decades. Mechanical, electrical, and plumbing systems represent a significant portion of a building’s energy consumption. Code requirements can impact HVAC equipment selections, lighting systems, control strategies, insulation levels, electrical infrastructure, and even how spaces are designed and utilized.

The key question is no longer simply: “How do we meet code?”

Instead, owners should be asking: “How do we meet code while creating the best long-term outcome for our organization?”

The answer will vary depending on the facility. A hospital’s priorities differ from those of a university, manufacturing plant, municipal building, or commercial office. Every project requires balancing first costs, operational efficiency, occupant comfort, maintenance needs, resilience, and future flexibility.

The 2024 IECC Raises the Bar

The latest edition of the International Energy Conservation Code (IECC) represents one of the most significant shifts in building energy requirements in recent years. While adoption schedules vary by jurisdiction, the 2024 IECC places increased emphasis on whole-building performance and long-term sustainability rather than simply prescribing minimum equipment efficiencies.

For architects, this means greater focus on building envelope performance, air sealing, daylighting strategies, thermal bridge mitigation, and planning for future electrification. Building orientation, wall assemblies, window performance, and air leakage control all play a larger role in achieving compliance.

For MEP engineers, the code introduces enhanced requirements for HVAC controls, energy monitoring, commissioning, lighting controls, demand-response capabilities, and higher-performing building systems. Many projects will also need to consider future-ready infrastructure that supports electric vehicle charging, renewable energy integration, and increased electrical capacity.

Perhaps the most impactful change for building owners is the code’s expanded use of a credit-based compliance approach. Rather than simply meeting baseline requirements, many projects must earn energy credits by incorporating additional energy-saving features or performance enhancements beyond the traditional prescriptive requirements. These credits can be achieved through measures such as advanced controls, on-site renewable energy, energy monitoring systems, electrification strategies, demand-response capabilities, and other high-performance building features.

What the New Point System Means for Owners

The new energy credit system changes how many projects will be planned and budgeted moving forward. Under previous energy code cycles, compliance often focused on selecting code-compliant equipment and meeting prescribed requirements. Under the 2024 IECC, owners may need to evaluate multiple compliance pathways and determine which combination of upgrades provides the best value for their facility.

In some cases, this may increase initial construction costs as additional efficiency measures are incorporated into the design. However, these same improvements can also create substantial long-term benefits through reduced utility expenses, enhanced building performance, improved operational visibility, and increased adaptability as energy regulations continue to evolve.

The result is that decisions made during programming and conceptual design become more important than ever. Waiting until later phases of design to address energy code requirements can limit available options and potentially increase project costs.

Looking Beyond First Cost

One of the most common mistakes owners make is evaluating building systems based solely on initial construction cost. While budget considerations are critical, the lowest-cost option today is not always the best financial decision over the life of a facility. Energy consumption, equipment lifespan, maintenance requirements, resilience, and operational flexibility can significantly impact the total cost of ownership.

As energy codes continue to evolve, owners should view compliance not as a regulatory hurdle but as an opportunity to evaluate how building investments support organizational goals over the long term.

The Value of the Right Partner

Successfully navigating today’s energy codes requires more than understanding regulations. It requires understanding how buildings operate, how systems interact, and how design decisions affect facility performance for years to come.

At KCI, our MEP professionals work closely with owners, architects, and contractors to interpret evolving requirements, identify practical solutions, and evaluate the operational impacts of design decisions before they become costly challenges. As the 2024 IECC and future energy codes continue to reshape the industry, the most successful projects will be those that treat energy performance as an integral part of planning, design, and operations from the very beginning. To learn more, contact us.