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Vision 2020: Cracking the Energy Code
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Vision 2020: Cracking the Energy Code

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  • 1. Cracking the Energy Code Cliff Majersik Institute for Market Transformation (IMT)Leadership ForumSeptember 4-5, 2012
  • 2. Market Transformation (n.)A process of strategic intervention in the market tobring about widespread, permanent changeFor IMT, this means creating the conditions forhigher investment in energy-efficient buildings
  • 3. Cycle of Transformation 2.Market compares buildings, captures1.Better measurement & savings; rewardsawareness of energy use efficiency 5.Codes strengthen 3. Competition to make buildings4.Higher efficiency more efficientbecomes standard FLO-0103-2DC-5N
  • 4. • Buildings account for 40% of total energy use & CO2 emissions • 85% of the buildings that will be standing in 2030 have already been builtIt’s urgent to reduce building energy use
  • 5. Recent code cycles have seen major gains in stringency
  • 6. Great progress…• The 2012 code achieved efficiency gains of about 30% above the 2006 IECC• If every state adopted & complied fully with the 2012 International Energy Conservation Code (IECC): – About $40 billion (real 2008 dollars) annual energy cost savings for consumers and businesses by 2030 – Annual CO2 avoidance by 2030 equivalent to the yearly emissions from • 39 million cars or • 47 coal-fired power plants
  • 7. …but not in 2015
  • 8. Why compliance?• Compliance with energy codes is below 50% in many places• Compliance is a low-cost solution with an incredible ROI$1 invested in compliance =$6 in energy savings
  • 9. Innovative strategies boostcode compliance• Third parties – Austin, Texas• Streamlining• Design professional accountability – Wisconsin…and more
  • 10. Compliance will drive market transformation, creating • Jobs • Energy savings • Favorable insurance rates for efficient homes • Better access to mortgages for efficient homesCompliance removes uncertainty, which is bad for markets
  • 11. The SAVE Act • In homes that consume less energy, owners/occupants pay lower utility bills. So they’re better able to make their next mortgage payment. • Bipartisan SAVE Act (S. 1737) will adjust underwriting rules to take energy costs into account.
  • 12. The SAVE Act • Under SAVE, mortgage underwriters would include energy in the costs of homeownership, when calculating a borrower’s debt- to-income ratio • They would also include the net present value (NPV) of future energy savings in the valuation
  • 13. The broad SAVE Act coalition40+ industry, trade and environmental groups include:
  • 14. What manufacturers can do• Keep labeling products to assist with energy- code compliance• Educate builders, tradespeople, local building officials• Organize and/or sponsor training programs
  • 15. By 2020…building blocks for 2030 Officials recognize that energy codes are as critically important as health & life safety codes. Using off-the-shelf technology greatly reduces time, cost, labor of ensuring compliance, pushing compliance rates way up.SAVE Act passes. Better accessto capital, better insurancerates, and bigger pricepremiums for energy-efficienthomes
  • 16. By 2030… • 90 percent compliance on a broad scale • Building industry is integrated, innovative, rather than conservative & fractured • Outcome-based codes are possible in a future where people are far more aware of energy than they are nowVia Verde / The Green Way, designed by Dattner Architects & Grimshaw.Photo © 2012 David Sundberg/ESTO and courtesy of Bright Power, Inc.
  • 17. Thank you Cliff Majersik Institute for Market Transformation (IMT) imt.orgLeadership ForumSeptember 4-5, 2012