ENERGY EFFICIENCY GAINS
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1 ENERGY EFFICIENCY GAINS How Initiating a 3-Step Program to Encourage Energy Efficiency can be Used to Address Sustainability Goals in the Greater Des Moines Region Presented to the CITY OF DES MOINES CITY COUNCIL Sheila Knoploh-Odole Christopher Scott Erica Shannon Stueve DRAKE UNIVERSITY LAW SCHOOL APRIL 26, 2012
2 WHY SUSTAINABILITY? BRUNTLAND COMMISSION: Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. KEY CONCEPT: The idea of SELF-IMPOSED LIMITS Self-imposed limits are necessary to protect the environment's ability to meet present and future needs. 2
3 THE COST OF CLIMATE CHANGE IN IOWA ECONOMIC 2008 STORMS: Iowa: $3.5 billion 2007 LATE FROST: SOCIAL EQUITY $2.2 Billion Nationally Low-income have fewer resources for recovery More likely to not have health insurance ENVIRONMENTAL More Moisture, Insects More Frequent & Severe Storms More Flooding Source: Iowa Climate Change Impacts Committee s Report to the Governor and the Iowa General Assembly Iowa Climate Change Advisory Council's website. 3
4 CARBON IMPACTS AND HOUSEHOLD ENERGY USAGE Burning Fossil Fuels to produce ENERGY Carbon Dioxide emissions Carbon Dioxide traps heat in the atmosphere Global warming and Climate Change In 2010, Iowa produced: 120 million metric tons Co2e Residential & commercial buildings produce: 34-42% of statewide carbon emissions Reducing household usage via EFFICIENCY Fewer carbon emissions 4
5 CURRENT LEGAL FRAMEWORK FOR ENERGY CODE STANDARDS FOR THE CITY OF DES MOINES Sec : Adoption of international codes. A. This article shall consist of the International Building Code ("IBC"), the International Existing Building Code ("IEBC"), the International Energy Conservation Code ("IECC") and 2009 editions All new construction and major remodels must meet IECC when completed 5
6 IECC Home Envelope Wall Insulation Energy Efficient Windows Water Heater Efficiency 6
7 WHAT THE LAW DOES NOT DO Does not cover EXISTING BUILDINGS in Des Moines 93% of all residential housing is not built to IECC code 7
8 AGE OF HOUSING STOCK CURRENT HOUSING STOCK Older, less efficient residences Higher demand for energy Social Equity Environmental Protection Economic Fairness CREATES 25% OF GHG EMITTED IN CENTRAL IOWA 8
9 IMPACT OF INEFFICIENT HOUSING: Social Inequity AVERAGE ENERGY BILL IN IOWA FOR RENTERS OF INEFFICIENT HOMES $2,066/yr. - 13% of low-income individual s total income - 3% of non-low-income individual s total income LIHEAP only provides $390 for low income assistance 9
10 WHAT THE LAW SHOULD DO Reduce carbon emissions Document Building Efficiency Educate and support owners/occupants to achieve most impactful efficiency gains first Create long-term efficiency gains Address regional sustainability goals 10
11 INNOVATIVE ORDINANCES AUSTIN, TEXAS: Energy audits required for all buildings Exemptions for homes with recent efficiency updates Criminal penalties for violation ANN ARBOR, MICHIGAN: Energy costs of rental unit provided prior to lease signing where renter pays utilities 11
12 INNOVATIVE ORDINANCES STOCKTON, CALIFORNIA: Voluntary program 2013 GOAL: 8,500 energy audits/retrofits If goal is not met, energy audits mandated beginning in 2014 NEW YORK CITY: Large multi-family & commercial buildings report energy usage annually to the city Audits required every 10 years Some audit recommended upgrades must be implemented City compiles data & makes publicly available online 12
13 PROPOSED ORDINANCE & NEXT STEPS I. Energy Audits Residential Buildings II. III. IV. Data Compilation and Benchmarking Disclosure Policies Commercial Building Audits V. Increase Incentives and Educate Public VI. Mandatory Upgrades for Least Efficient Buildings 13
14 PRIVATELY OWNED RESIDENCES Audit required at time of sale of home or major renovation Exceptions for recent energy audit and financial hardship Information shared with prospective buyer with option to rescind contract Major renovations require audit findings to be submitted to the city before approval of final permit 14
15 RESIDENTIAL RENTAL BUILDINGS Audit required at first renewal of rental certificate and every 10 years afterward Audit required for major renovation before approval of final permit Most recent audit and a sample monthly utility bill presented to prospective renter 15
16 MONITORING/ACCOUNTABILITY Permission for city to penalize Energy audits will be compiled annually and available online Follow Up Materials will be sent to all owners immediately following the audit. 16
17 SAMPLE ORDINANCE GOALS: INCREASE number of energy audits BUILD DATABASE of efficiency information for residential property BRING AWARENESS to residential owners about upgrade options and expected Return on Investment DECREASE long term energy use INCREASE property values and market competition 17
18 WHY ENERGY AUDITS? 1. EASY FIRST STEP that can be implemented today 2. CREATES baseline energy consumption information 3. IDENTIFIES efficiency improvements to be made Lower Utility Bills Increased Comfort 4. ALLOWS for STI: Strategic, Targeted Implementation 18
19 WHY DATA BENCHMARKING? 1. CAPTURES accurate consumption model 2. MEASURES reduction of usage over time 3. COMPARES similar structures making identification of energy drains possible 4. HELPS owners assess energy efficiency of their property Knowledge gained facilitates lower operating costs 19
20 WHY DISCLOSURE POLICIES? 1. Rank Buildings of Similar Size Provides a realistic picture of the cost of living for a building 2. Creates Competition in Real Estate Market increased consumer demand for more efficient homes increased property values 3. Creates Informed Decision-Making Buyers/lenders: access to efficiency information Tenants/occupants: provides utility information 20
21 WHAT SUSTAINABILITY GOALS ARE WE TRYING TO MEET? TOMORROW PLAN Sustainability Survey 21
22 WHAT SUSTAINABILITY GOALS ARE WE TRYING TO MEET? CAPITOL CROSSROADS Sustainability, opportunity, & talent 22
23 OTHER GUIDING PRINCIPLES THE PROPOSAL WILL ADDRESS DSM STEWARDSHIP POLICY 5. Our community shall minimize its contribution to fossil fuel dependence and global warming by promoting energy efficiency programs US MAYOR S CLIMATE PROTECTION AGREEMENT 1. Inventory global warming 5. Make energy efficiency a priority 23
24 ENERGY EFFICIENCY IS GOOD FOR EVERYBODY Thanks to the Greater Des Moines Partnership for agreeing to work with the Drake Sustainability Program and allowing students to experience a handson project from which everyone benefits. Thanks also to our mentor, Professor Jonathan Rosenbloom, who led us through this process of discovery. 24
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