Building Energy Codes Prevent Climate Change House Staff Briefing June 22, 2009 Lowell Ungar Director of Policy Alliance to Save Energy

Presentation Outline About the Alliance… Why building codes? How building codes are done now Advanced codes legislation

About the Alliance…

Why building codes?

How building codes are done now

Advanced codes legislation

What is the Alliance? Mission: The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security Chaired by Senator Mark Pryor (D-AR) and James Rogers (CEO, Duke Energy) with strong bipartisan congressional, corporate & public interest leadership. Jim Rogers, CEO Duke Energy Bi-partisan, bi-cameral Honorary Vice Chairs

Mission: The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security

Chaired by Senator Mark Pryor (D-AR) and James Rogers (CEO, Duke Energy) with strong bipartisan congressional, corporate & public interest leadership.

What is the Alliance? NGO coalition of 150+ prominent business, government, environmental and consumer leaders. Conduct policy, education, research, technology deployment, market transformation and communication initiatives. Headquartered in Washington, D.C. with operations in Eastern Europe, South Africa, Mexico, India and several states in the U.S.

NGO coalition of 150+ prominent business, government, environmental and consumer leaders.

Conduct policy, education, research, technology deployment, market transformation and communication initiatives.

Headquartered in Washington, D.C. with operations in Eastern Europe, South Africa, Mexico, India and several states in the U.S.

Why Buildings? Buildings use 40% of energy in U.S., cause 40% of CO 2 emissions Efficient buildings Reduce stress on power grid and natural gas supplies Improve air quality and public health Avoid global warming Save consumers money

Buildings use 40% of energy in U.S., cause 40% of CO 2 emissions

Efficient buildings

Reduce stress on power grid and natural gas supplies

Improve air quality and public health

Avoid global warming

Save consumers money

Why Building Energy Codes? Key to making all new buildings more efficient Makes homes more affordable Monthly ownership cost lowered: mortgage payment + utility bills Overcomes economic barriers Split incentive: eg builders pay costs, buyers pay energy bills Construction is cheapest and easiest time to build in efficiency

Key to making all new buildings more efficient

Makes homes more affordable

Monthly ownership cost lowered: mortgage payment + utility bills

Overcomes economic barriers

Split incentive: eg builders pay costs, buyers pay energy bills

Construction is cheapest and easiest time to build in efficiency

Potential Savings If all states improved codes, by 2030 our nation could save each year: 8% of total building energy use (4 quadrillion Btu) $28 billion in consumer energy bills greenhouse gas emissions of 46 million autos (250 million tons of carbon dioxide)

If all states improved codes, by 2030 our nation could save each year:

8% of total building energy use (4 quadrillion Btu)

$28 billion in consumer energy bills

greenhouse gas emissions of 46 million autos (250 million tons of carbon dioxide)

How Codes are Set Independent professional organizations develop national model building codes DOE determines whether updates save energy States adopt codes based on national models (sometimes with changes) States required to consider residential model States required to adopt commercial model Local governments enforce codes

Independent professional organizations develop national model building codes

DOE determines whether updates save energy

States adopt codes based on national models (sometimes with changes)

States required to consider residential model

States required to adopt commercial model

Local governments enforce codes

Codes Savings: inch by inch

Codes - Compliance A wide range of compliance rates: Need more training and enforcement AR – 55% MA – 46% CA – 75% MT – 87% IA – 53% OR – 100% ID – 52% VT – 58% LA – 65% WA – 94%

A wide range of compliance rates:

Need more training and enforcement

Codes Legislation: Goal Address national energy needs using current process Set national goals for energy savings Ensure development, adoption, compliance

Address national energy needs using current process

Set national goals for energy savings

Ensure development, adoption, compliance

Codes Legislation: Status Sec. 201 in ACES Similar provision in House-passed energy bills last year Similar provision in Senate energy bill, Lieberman-Warner climate bill last year

Sec. 201 in ACES

Similar provision in House-passed energy bills last year

Similar provision in Senate energy bill, Lieberman-Warner climate bill last year

Proposal – Targets National energy codes with aggressive energy savings targets: 30% savings in 1 year 50% savings in 2014 (homes), 2015 (comm.) 5% more savings every 3 years

National energy codes with aggressive energy savings targets:

30% savings in 1 year

50% savings in 2014 (homes), 2015 (comm.)

5% more savings every 3 years

New Building Goals American Institute of Architects, U.S. Conference of Mayors, … Reduce fossil fuel use for new and renovated buildings by 60% in 2010, rising to 100% by 2030 ASHRAE (commercial building standards) 2010 Standard 30% more stringent than 2004 IECC (residential) 4 proposals for 30% savings in 2012 Tax incentives require 50% better than code 50,000 new homes have met criteria

American Institute of Architects, U.S. Conference of Mayors, …

Reduce fossil fuel use for new and renovated buildings by 60% in 2010, rising to 100% by 2030

ASHRAE (commercial building standards)

2010 Standard 30% more stringent than 2004

IECC (residential)

4 proposals for 30% savings in 2012

Tax incentives require 50% better than code

50,000 new homes have met criteria

Proposal – Development ICC and ASHRAE get first chance, with DOE help Backstop: DOE sets if they don’t

ICC and ASHRAE get first chance, with DOE help

Backstop: DOE sets if they don’t

Proposal – Adoption Direct states to adopt national code or equivalent within one year Backstop: If state and locality do not, federal code is effective in that area

Direct states to adopt national code or equivalent within one year

Backstop: If state and locality do not, federal code is effective in that area

Proposal – Compliance Direct states to improve compliance 90% of building space complies within 7 years DOE help: 0.5% of all allowances to states, localities for code implementation Stick: States lose increasing share of total allocation if fail to meet targets Backstop: If states + localities still do not enforce, federal enforcement

Direct states to improve compliance

90% of building space complies within 7 years

DOE help: 0.5% of all allowances to states, localities for code implementation

Stick: States lose increasing share of total allocation if fail to meet targets

Backstop: If states + localities still do not enforce, federal enforcement

Support for Codes Provision EEI APPA NRECA Duke National Grid PNM PG&E SCE NASEO AIA CFA NCLC ACEEE NEEP MEEA SWEEP SEEA Sierra Club Audubon Environment America NWF Greenpeace NRDC UCS NAIMA PIMA NIA ICAA NFRC Johns Manville Owens Corning Honeywell And many more (some based on last year’s language)

EEI

APPA

NRECA

Duke

National Grid

PNM

PG&E

SCE

NASEO

AIA

CFA

NCLC

ACEEE

NEEP

MEEA

SWEEP

SEEA

Sierra Club

Audubon

Environment America

NWF

Greenpeace

NRDC

UCS

NAIMA

PIMA

NIA

ICAA

NFRC

Johns Manville

Owens Corning

Honeywell

Thank You! Lowell Ungar Alliance to Save Energy Phone: (202) 857-0666 Email: [email_address] Website: www.ase.org www.bcap-energy.org

Lowell Ungar

Alliance to Save Energy

Phone: (202) 857-0666

Email: [email_address]

Website: www.ase.org

www.bcap-energy.org

Proposal – Model Codes ICC/ASHRAE would still set models Today Proposed ICC and ASHRAE set models Same DOE determines if models save energy DOE determines if models meet targets If they do not meet targets, DOE sets code that does

ICC/ASHRAE would still set models

Proposal – Adoption States would still set building codes Today Proposed States set codes with DOE help Same States directed to adopt commercial model, consider residential model States directed to adopt both models or equivalent If states and localities don't adopt, DOE does

States would still set building codes

Proposal – Compliance Localities, states would still enforce building codes Today Proposed Localities usually enforce codes, states assist States directed to measure and improve compliance 0.5% of allowance value for codes implementation (states, localities split) States lose allocation if don't meet targets If locals, state don’t, DOE enforces

Localities, states would still enforce building codes

Building Codes + Appliance Standards Section 213(j) in ACES: In order to meet savings targets, codes must address equipment as well as “envelope” Often more efficient equipment makes sense in new construction State codes preempted by federal appliance standards, but need flexibility Adopt requirements in national model Provide alternative pathways, as long as at least one pathway at base level

Section 213(j) in ACES:

In order to meet savings targets, codes must address equipment as well as “envelope”

Often more efficient equipment makes sense in new construction

State codes preempted by federal appliance standards, but need flexibility

Adopt requirements in national model

Provide alternative pathways, as long as at least one pathway at base level