Public hearing, committee meeting held for proposed delay to code enforcement

The construction and commercial real estate industry on Wednesday made their case before a committee of Wisconsin lawmakers to delay new commercial building codes as the state licensing agency rolled out new standards in November.

The Senate Committee on Licensing, Regulatory Reform, State and Federal Affairs held a public hearing for Senate Bill 475/Assembly Bill 450, which seeks to delay enforcement of new commercial building codes to spring 2026.

New building codes, based on the 2021 International Building Code, were published by the Legislative Reference Bureau and went into effect on Sept. 1. Enforcement of the codes was pushed to November with feedback from the building industry.

The new code will only affect construction for buildings larger than single-family homes, but ongoing projects and planning projects will have to go back to the drawing board and rewrite their plans with the new commercial building code, said John Schulze, legal and political director of Associated Builders and Contractors of Wisconsin.

The industry is also facing inflation, tariffs, workforce shortages and other issues, but might find relief if regulations are delayed until April, he added.

Wisconsin adopted a statewide building code in 2015 based on the International Building Code with some “Wisconsinisms,” or adjustments specific to the state, Schulze said. The code based on 2021 IBC places more focuses on energy savings for owners and building users, he added.

Many projects going through the local approval process are working under the former commercial building code, and “Now they’re in a bind,” said Bill Connors, executive director of Smart Growth Greater Madison, a group that represents real estate developers.

“If they get into the ground and start construction in spring, they need to finish those detailed plans and finish the process of working with city departments and getting conditions cleared very, very soon,” he added.

Connors said he had calls from developers asking what to do, as their plans were 95% completed and wanted to begin construction in the spring. He urged legislators to make a decision so the industry knows what to do.

State Sen. Chris Larson, a Democrat who represents much of the city of Milwaukee, asked what the impetus for the delay was if the industry knew changes were coming in 2023, when the Wisconsin Department of Safety and Professional Services introduced a new administrative rule to the Legislature.

A legislative committee suspended the administrative rule indefinitely that year, but a Wisconsin Supreme Court ruling in July nullified much of the committee’s power.

The building industry felt “comfortable” knowing they wouldn’t have to change their plans after the committee blocked the code changes in 2023, Connors said. He noted the uptick of projects in the Madison area around the time.

DSPS isn’t asking people to adjust plans that have already been approved, a spokesperson for the agency said.

A building envelope plan submitted under the 2015 Wisconsin Commercial Building Code by the end of October 2025 will be grandfathered and reviewed, wrote Dan Hereth, secretary of DSPS, in a letter. All conditional approvals and plans submitted for other building components under the grandfathered building plan will need to follow the 2015 code. After Nov. 1, all submitted commercial building plans will need to follow the updated code, he added.

Supplemental sub-submissions related to work on those projects, such as fire suppression and HVAC systems, should follow the same code the building envelope plan was approved, even if they come months later, the spokesperson said.

In 2023, representatives of the American Society of Heating, Refrigerating and Air-Conditioning Engineers testified the new code would create energy and construction cost savings that would benefit residents and businesses, Hereth wrote. His letter responded to a separate letter circulated by lawmakers this fall seeking to delay the new codes until spring.

“For buildings in Wisconsin, this code update would amount to estimated energy-cost savings of $800,900 in the first year, and $343.9 million over 30 years,” the testimony said.

“This code update would also increase cost-effectiveness in construction and reduce construction costs by an estimated $1 per square foot for mid-rise apartments, with immediate payback on construction costs for builders. This building type would also see total life cycle cost savings of over $3.50 per square foot over 30 years. This is because the latest update reduces the number of light fixtures needed per square foot; LED technology is cheaper, more efficient, and lasts longer; and smaller HVAC equipment is needed because of better building envelopes,” the testimony added.

Each dollar saved on energy costs and not shipped to another state or nation to pay for oil or gas is a dollar reinvested in the state, Hereth said.

The updated code will bring life safety improvements and add clarity to plan review and construction processes related to the International Fire Code, the secretary said. It also makes changes critical to the growth of mass timber construction and provides additional market opportunities for foresters throughout Wisconsin, he added.

“Wisconsin cannot afford to wait for these significant improvements that will drive economic growth while protecting the public, which also happens to be the mission of the department I lead,” Hereth said.