Analysis of Code Impacts of H.R. 2454 American Energy Security Act

 

 

Summary:

As with the AARA, the ACESA requires states to adopt and enforce energy efficiency building codes. At least two sets of funds and or allotments designated for states require certification of compliance to national building selected and updated by the US DOE.

Also, the targets for increased energy efficiency requirements for the national code established by the bill are more aggressive than those established by Florida law.

 

 

Titles of Interest:

Title II, Subtitles A & B

Sec. 201          Building Codes

Sec. 204          Building Performance Labeling Program

Sec. 211          Lighting Efficiency Standards

Sec. 212          Other Appliance Efficiency Standards

Sec. 213          Appliance Efficiency Determinations and Procedures

Sec. 215          WaterSource

Sec. 218          Certified Stoves Program

Sec. 219          Energy Star Standards

 

 

Energy Code Required Improvements:

  • Improvement referenced to –

            Residential        2006 IECC

            Commercial      2004 ASHRAE Std 90.1

  • Schedule of improvement targets –

            Effective date of the bill             30%

            2017 Res/2018 Com                            50%

            2020 Res/2021 Com                              5% additional

            2023 Res/2024 Com                              5% additional

            2026 Res/2027 Com                              5% additional

            2029 Res/2030 Com                              5% additional

            2033 and beyond                                 DOE to set target

 

  • Building code complying with target within 1 year of the target date
  • DOE can modify target lower or higher based on cost effectiveness.
  • Cost effectiveness to consider externalities, e.g. climate change and peak energy demand.
  • If there is a national consensus code that meets the target improvement at the 1 year from target time point then it becomes the national building code.
  • DOE to support development of consensus codes and standards.
  • For residential code DOE to consider:

            ASHRAE stds

            IECC

            RESNET data on measures to qualify for tax credits

            DOE Build America Program

            Energy Star Program data

            New Building Institute data

            State and local standards for cool roof

  • For commercial code DOE to consider:

            ASHRAE codes

            IECC

            Core Performance Criteria of NBI

            Commercial High-Performance Green Building Office of DOE data

            Energy Star

            RESNET data

            Cool roofs of state & local codes

  • If  DOE selects a consensus model code it must:

- Notify state and local entities

            - Provide distribution on internet and to state and local entities at no cost

            - Contract with an entity to provide training

            - Can give grants to the entity

            - Provide input to the model code process for how to achieve the next target

  • States shall:

- Within 1 year – certify equivalence of state code or adoption of national code to DOE (for states that adopt the energy code).

- DOE has 90 days to accept or reject certification.

- Within 2 years states must certify it has achieved compliance based on 90 percent and measures adopted by DOE or equivalent.

 

 

Incentives to states:

Incentive for compliance –

  • For states with certifications accepted by DOE will get state allowances “pursuant to 782(g)(2) of  the “Clean Air Act””

            1/5       of total in equal amount allotted to all states

2/5       based on state energy use

2/5       based on construction starts/new building permits

Amount not used due to states not in compliance will be distributed to state in compliance

  • In states where locals enforce the code a minimum of 50% of the state’s allowance must go to the local governments based on population.
  • DOE is provided $100,000,000 annually for supporting this section.

 

Penalty for non-compliance –

·        State does not get its Emission Allowances

·        State does not get $ in excess of its share of the $125,000,000 annual allocation to DOE under sec. 323 of the bill. Penalty schedule –

Additional (beyond base allowance) reduced by:

  25%   year 1

  50%   year 2

  75%   year 3

100%   year 4 and later

            State Emission Allowances –

            2012 – 2050

            Deposited into the state’s SEED account

                        1/3       Equal amounts to states

                        1/3       Prorated by population

                        1/3       Prorated by state energy use

            Use of Allowances –

                        (2)        (A)       Building Code

                                    (B)       Energy Efficiency Manufactured Home Program

                                    (C)       Building Energy Performance Labeling Program

                                    (D)       Smart Grid

                                    (E)       Transportation Planning

                                    (F)       Low income community Energy Efficiency Programs

(G)       Other cost effective Energy Efficiency programs for end use customers

                        (3).       REEP – Retrofit Energy and Environmental Performance

(4)        Capital grants, tax credits, production incentive loans, loan guarantees, forgivable loans, and interest buy-down

            Schedule for allowances –

                        15%     for (2)

                        12.5%  for pass through to local governments

                        5%       for (3)

                        20%     for (4)

                        47.5%  for (2)(A)-(F), (3) and (4)