ENERGY CODES THE REAL STORY

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1 BUILDING CODES ASSISTANCE PROJECT ENERGY CODES THE REAL STORY NCSL ENERGY POLICY SUMMIT

2 BCAP Building Codes Assistance Project Non-profit advocacy group based in D.C. since 1994 A joint initiative of the Alliance to Save Energy, the National Resource Defense Council, and the American Council for an Energy Efficient Economy Provide resources, education & advocacy assistance for the adoption, implementation, & advancement of effective energy codes on behalf of US Department of Energy

3 ENERGY CODES

4 ENERGY CODES = Great Policy Tool

5 Let s Talk About Why and How Why energy codes: Achieve energy savings Support additional savings in buildings Are all about quality How can energy codes can: Be adopted Be implemented Have an impact

6 Let s Talk About Why and How Why energy codes: Achieve energy savings Support additional savings in buildings Are all about quality How can energy codes can: Be adopted Be implemented Have an impact

7 Opportunity Knocking Buildings are the nation s largest source of global warming pollution Efficient buildings Reduce stress on power grid and natural gas supplies Improve air quality and public health Save consumers money

8 How to Reduce Energy Use in New Buildings? Source: ACEEE

9 How to Reduce Energy Use in New Buildings? 66% 66% Source: ACEEE

10 Savings from Codes? Codes tell you the legal minimum requirements for a building Developments in building technology and practices are enabling more energy-efficient buildings The sector in moving towards zero-net energy Codes are going to pull up the bottom of the market in step with the zero goal

11 Codes: Old way of thinking: The worst we can build OR The best we can expect given current technologies, costs, practices, opportunities, etc. = good practice

12 VALUE of Energy Codes Energy codes establish a foundation for energy and green programs: ENERGY STAR, LEED homes and commercial buildings, ASHRAE Standard 189 Building America/ federal tax incentive, and Net-zero energy buildings

13 Codes in Context Energy Efficiency Source: US DOE Push Appliance Standards Building Energy Codes Pull ENERGY STAR Appliances Home Energy Ratings Tax Credits 13

14 Today s Codes Standard % Beyond 2004 edition Standard ~ >7% 2012 IECC 30% Beyond 2006 edition? 2009 IECC ~ > 17% Source: US DOE

15 Using Codes to Save Energy Codes are a cost-effective strategy but are not without costs (training, resources, enforcement, etc.) Do not cover: Plug loads NAECA appliances and equipment Building orientation Building layout Equipment maintenance Building operations Occupant behavior

16 Quality Assurance - Expectations

17 Quality Assurance - Expectations

18 Comfort

19 Comfort

20 Occupants don t SEE energy efficiency, but they live with the consequences Comfort

21 Consumer Cost utility bills Efficiency Level Cooling Cost Heating Cost Total Annual Cost 1995 MEC = baseline 2006 IECC $562 $266 $828 $424 $171 $595 15% more than IECC 50% more than IECC $342 $122 $464 $281 $100 $381 Analysis of Energy Saving Impacts of New Residential Energy Codes for the Gulf Coast Pacific Northwest National Laboratory 2007

22 Consumer Cost first cost Efficiency Level Improvements Cost Increase over baseline 1995 MEC = baseline 2006 IECC EE windows Insulated ducts 15% more than IECC 50% more than IECC -- $-- More ceiling insulation Improved duct and envelope ceiling Energy Rating ($450) Programmable thermostat EE Air Conditioner EE Furnace High efficiency windows $618 $2,198 (+ $1,580 over IECC) $1,354 (- $2,000 tax credit) Analysis of Energy Saving Impacts of New Residential Energy Codes for the Gulf Coast Pacific Northwest National Laboratory 2007

23 The Opportunity to do Better consider an energy-saving home costing $126,000 alongside a standard home costing $125,000. The following table shows the comparative expenses of a standard home versus an energy-saving home, assuming that the interest rate is 6% and the term of the mortgage is 30 years: - Kentucky Office of Energy Policy Standard Home Energy Saving Home Monthly Mortgage $689 $695 Monthly Energy Cost $50 $20 Monthly Total $739 $715

24 Summary Benefits Key Messages Codes save energy Boost the ability of the market to build better Provide quality homes and buildings (thermal comfort health) Save homeowners and businesses money RESOURCES Codes are cost-effective and utilize market-ready technology Good builders BENEFIT from codes (they don t have to compete with substandard buildings)

25 Let s Talk About Why and How Why energy codes: Achieve energy savings Support additional savings in buildings Are all about quality How can energy codes can: Be adopted Be implemented Have an impact

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28 State Level Primary Code Adoption Possible Barriers: Irregular or no state update process Contradictory information on benefits and costs No time requirements for local government Confusing/ contradictory adoption language

29 Keys to Adoption Available training and resources Building sector familiar with code changes Code Officials familiar with code changes Information on cost and benefits (remember life-cycle cost)

30 BEST PRACTICE (Enable/Empower) Code Adoption Policy Mandatory Automatic Review & Updates (State & Local) No Weakening Amendments/Strengthen your Code Allow Innovation Link Code to Voluntary High Performance Programs (Continuum) Assured Funding Mechanism for Code Officials Encourage Education & Training Track Compliance

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32 CODE BUILDER

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34 Contact Information Aleisha Khan Executive Director Building Codes Assistance Project (BCAP)