This Decision Regulation Impact Statement (RIS) examines the expected impacts, including costs and benefits, associated with a proposal to add separate heating and cooling load limits or ‘load limits’ to the current Nationwide House Energy Rating Scheme (NatHERS) compliance pathway for the energy performance of residential buildings in the National Construction Code (NCC, or the Code). The separate heating and cooling load limits would be in addition to the current NatHERS rating requirements in the Code, but would be set at a level that is not intended to change stringency.

This Decision RIS examines the potential adjustment of requirements for Class 1 dwellings, Class 2 sole-occupancy units (SOUs) and Class 4 parts of a building under clauses 3.12.0.1 and J0.2 in NCC Volumes Two and One respectively.

This Decision RIS explores the potential impact of the proposed change by:

• Identifying the problem and explaining why action is necessary for a resolution
• Setting out options for addressing the problem
• Analysing the impacts of options – including their benefits and costs along with other impacts on market dynamics (such as competition)
• Summarising the key points raised in consultation, and analysing how these may alter the understanding of the problem and/or the options
• Drawing conclusions and recommendations for proposed changes to the NCC in 2019.