Cracking the                      Energy Code                      Cliff Majersik                      Institute for Marke...
Market Transformation (n.)A process of strategic intervention in the market tobring about widespread, permanent changeFor ...
Cycle of Transformation                          2.Market compares                          buildings, captures1.Better me...
• Buildings account for 40% of           total energy use & CO2           emissions         • 85% of the buildings that   ...
Recent code cycles have seen major gains in stringency
Great progress…• The 2012 code achieved efficiency gains of about 30%  above the 2006 IECC• If every state adopted & compl...
…but not in 2015
Why compliance?• Compliance with energy  codes is below 50% in many  places• Compliance is a low-cost  solution with an in...
Innovative strategies boostcode compliance• Third parties   – Austin, Texas• Streamlining• Design professional  accountabi...
Compliance will drive market transformation, creating          • Jobs          • Energy savings          • Favorable insur...
The SAVE Act      • In homes that consume less        energy, owners/occupants pay        lower utility bills. So they’re ...
The SAVE Act        • Under SAVE, mortgage          underwriters would include          energy in the costs of          ho...
The broad SAVE Act coalition40+ industry, trade and environmental groups include:
What manufacturers can do• Keep labeling products  to assist with energy-  code compliance• Educate builders,  tradespeopl...
By 2020…building blocks for 2030 Officials recognize that energy codes are as critically important as health & life safety...
By 2030…                                         • 90 percent compliance on a                                           br...
Thank you                      Cliff Majersik                      Institute for Market Transformation                    ...
Vision 2020: Cracking the Energy Code
Vision 2020: Cracking the Energy Code
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Vision 2020: Cracking the Energy Code

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Vision 2020: Cracking the Energy Code

  1. 1. Cracking the Energy Code Cliff Majersik Institute for Market Transformation (IMT)Leadership ForumSeptember 4-5, 2012
  2. 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. 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. 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. 5. Recent code cycles have seen major gains in stringency
  6. 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. 7. …but not in 2015
  8. 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. 9. Innovative strategies boostcode compliance• Third parties – Austin, Texas• Streamlining• Design professional accountability – Wisconsin…and more
  10. 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. 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. 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. 13. The broad SAVE Act coalition40+ industry, trade and environmental groups include:
  14. 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. 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. 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. 17. Thank you Cliff Majersik Institute for Market Transformation (IMT) imt.orgLeadership ForumSeptember 4-5, 2012

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