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February 2005 State Energy Efficiency Bulletin

February 2005
Newsletter Contents:

Guest Highlight
The Building Codes Assistance Project provides a helpful primer on state energy codes. Learn about what's happening in your state!

Alliance to Save Energy Column
Energy Efficiency in the Southwest: learn about Nevada's new energy efficiency strategy.

State Updates
Legislative and Regulatory News from Alabama, Arizona, Colorado, Connecticut, Georgia, Hawaii, Indiana, Maine, Maryland, Michigan, Missouri, Montana, New York, Oregon, Texas, Vermont, Virginia, Washington

RECA Report
Get the latest on the work of the Responsible Energy Codes Alliance (RECA).

Special Column: EPA Launches Clean Energy-Environment State Partnership Program

The Alliance Wants to Hear from You!
Contact us with suggestions or comments.

Click here to subscribe to the State Energy Efficiency Policy Bulletin

View Archives



The "ABCs" of Buidling Energy Codes

By Brian Yang, Research Associate, Building Codes Assistance Project and David Weitz, Executive Director, Building Codes Assistance Project

Buildings account for approximately 35% of total U.S. CO2 emissions (about 635 million metric tons) per year . This figure includes a tremendous amount of unnecessary energy use, and is indicative of broader environmental and economic costs to individuals and society. The adoption of building energy codes is one of the simplest and most cost-effective ways to minimize these costs and the environmental damage associated with them.

As building codes are established at the state level, states can play a key role in steering the U.S. toward a sustainable, efficient energy future. Considering estimates that the U.S. could save 7 trillion Btu annually—enough to heat and cool more than 156,000 homes every year —through the adoption of residential energy codes in every state, these are clearly powerful policy tools.

However, codes are not intended to drive the cutting edge of efficient design and construction. Instead, they eliminate worst practices and help open the market to more efficient technologies, materials, and approaches. Codes set the baseline for energy efficiency in buildings, or to put it bluntly, the code defines the worst-performing building allowed by law.

Current Code Adoption
The two most widely used model energy codes in the U.S. are the IECC and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1. The IECC covers residential and commercial buildings, while Standard 90.1 pertains exclusively to commercial buildings. Currently 13 states have the 2003 version of IECC for residential buildings in place or pending adoption, and 13 states have adopted the 2003 IECC (which references ASHRAE 90.1-2001) for commercial buildings. A number of states are considering adopting the provisions of the 2004 IECC and/or ASHRAE 90.1-2004.

State Leadership
Several states have taken a leadership role in making building energy codes an active part of their overall energy management policies. California is recognized widely as having the most stringent energy efficiency standards in the country. The 2005 California Energy Efficiency Standards for Residential and Non-Residential Buildings mandate even more stringent energy efficient lighting requirements than earlier editions of the state developed code.

On the other coast, Florida adopted the upgraded Lighting Power Density (LPD) provisions of the just released ASHRAE Standard 90.1-2004, in recognition of substantial potential for energy savings from lighting changes.

Given the rise in natural gas prices, eliminating truly wasteful construction practices is increasingly important. A recent study by ACEEE indicates that a small decrease in natural gas demand can result in significant reduction in wholesale prices: reducing consumption nationally by only 2% could yield price reductions of 20% and generate over $75 billion dollars in savings over a five-year period. Building energy codes are an important element in reducing consumption of natural gas and other fuels.

In the northeast, the state of New York is adopting the newly released 2004 International Energy Conservation Code (IECC) with state amendments as their residential building energy code.

Minnesota is leading the way in the Midwest by adopting its enhanced version of the 2004 IECC, both for Residential and Commercial buildings as well. A number of other states such as North Carolina and Indiana also are considering adopting the provisions of the 2004 editions of the ASHRAE Standard 90.1 or IECC.

These states are paving the way for the rest of the country, and in particular for states such as Colorado, Mississippi, South Dakota, Missouri, Wyoming, Nevada, and Arizona, which have no mandatory statewide building energy code for residential of commercial buildings. [It is notable though that many local jurisdictions within these states have adopted energy codes. For example, Phoenix, Arizona, is considering adoption of the provisions of ASHRAE 90.1-2004.]

For consistently updated material on state building energy code adoption, please visit the Building Codes Assistance Project (BCAP) at http://www.bcap-energy.org/.






New Developments
The recent release of the 2004 Supplement to the IECC and ASHRAE 90.1-2004 represent positive developments in codes and a major opportunity for states to increase energy efficiency.

The IECC has undergone major revisions that drastically simplify compliance, including:

• The number of climate zones has been reduced from 19 to 8, with zones now defined geographically by political boundaries rather than climatically.

• Insulation levels and window performance criteria in the residential code are now independent of the amount of glass, making it much simpler for designers, builders, and code officials.

• In addition, most in-the-field design changes require no additional approval from a code official, since modifications no longer require recalculation and re-submittal.

• Finally, the requirements in a given jurisdiction will not change from house to house as they did before.

ASHRAE Standard 90.1-2004 has undergone similar changes that simplify its adoption and enforcement. The Standard has been restructured so that it is more accessible, with a consistent numbering scheme. It also features a reduced number of climate zones that are exactly the same as those found in the IECC. Most significantly, the new 90.1 Standard lowers lighting power allowances by approximately 25%, a very noteworthy improvement that can be met using current off-the-shelf equipment. This change reconciles the 90.1 and IECC power allowances, closing a serious efficiency loophole.

The development and release of the 2004 IECC Supplement and ASHRAE 90.1-2004 will make the codes more accessible to designers, builders, and code officials. They lower several adoption barriers, and represent a prime opportunity for states to capture energy savings through a set of codes that simplifies comprehension, compliance and enforcement.


For more information on energy codes visit http://ashrae.org/ or http://www.iccsafe.org/.

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Nevada Energy Efficiency Strategy Issued

By Kate Offringa, Director of Market Transformation, Alliance to Save Energy

Governor Kenny Guinn announced that new policies for increasing energy efficiency outlined in the report could save consumers and businesses in Nevada nearly $5 billion over the next 15 years at the release of the “Nevada Energy Efficiency Strategy” last month. The strategy report was released by the Southwest Energy Efficiency Project (SWEEP), the Nevada State Office of Energy (NSOE), and the Nevada Renewable Energy and Energy Conservation Task Force (Task Force). The report indicates how Nevada can achieve approximately 20% electricity and natural gas savings by 2020 through a combination of policy initiatives.

Howard Geller, Executive Director of SWEEP and lead author of the report, says that he is hopeful that Governor Guinn and key legislators will pursue some of the recommended policies in the upcoming legislative session, and that other states may be interested in using or replicating the strategy.

The “Nevada Energy Efficiency Strategy” considers 14 energy policy options for reducing electricity and natural gas consumption through greater energy efficiency. The options range from expanding utility energy efficiency programs, to upgrading building construction energy codes, to adopting energy pricing structures that will encourage reduced electricity demand when demand is greatest. Seven of the policy options are designated as "highest priority."

“The ‘Nevada Energy Efficiency Strategy’ shows that increasing energy efficiency can greatly reduce peak electricity demand, especially in Nevada Power’s system,” said Dick Burdette, Governor Guinn’s Energy Advisor and head of the NSOE. “These strategies let us use the existing electricity system more efficiently and reduce, in part, the need for costly investments in new power plants and transmission lines – even with Las Vegas’ rapid population growth.”

“The Task Force is pleased to have helped develop these policies. Our next focus will be how to implement them,” said Dr. Jane C.S. Long, Chair of the Nevada Renewable Energy and Energy Conservation Task Force. Recommendations for implementing the “Nevada Energy Efficiency Strategy” will appear in the Task Force’s 2005 Annual Report to the Governor of Nevada and the 2005 Session of the Nevada State Legislature.

The Nevada Renewable Energy and Energy Conservation Task Force was created by the 2001 Session of the Nevada State Legislature to advise the Nevada State Office of Energy in the development of periodic review of the comprehensive state energy plan with regard to the use of renewable energy and the use of measures which reduce the demand for energy or which result in the more efficient use of energy.

The Alliance to Save Energy’s Director of Market Transformation, Kate Offringa, participated in one of two workshops organized by SWEEP and the Task Force and provided input to the energy efficiency strategy.

The “Nevada Energy Efficiency Strategy” was prepared by SWEEP with funding from the Energy Foundation, Nevada Power Company, and the Nevada State Office of Energy (NSOE). The “Nevada Energy Efficiency Strategy” is available on the NSOE website and the SWEEP website.

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EPA Launches Clean Energy-Environment State Partnership Program

By Kate Offringa, Director of Market Transformation, Alliance to Save Energy

The U.S. Environmental Protection Agency (EPA) launched a major new initiative last week to tackle issues at the energy-environment nexus in partnership with states. The stated goal of the new Clean Energy-Environment State Partnership Program is “to improve air quality, decrease energy use, reduce greenhouse gas emissions, and enhance economic development.”

California, Colorado, Connecticut, Georgia, Minnesota, New Jersey, New Mexico, New York, Ohio, Pennsylvania, and Texas signed on as “charter members” when EPA announced its new initiative on February 18th at the 2005 Energy Outlook conference of the National Association of State Energy Officials (NASEO) in Washington, DC.

States joining this voluntary program will work with EPA to develop and implement state-specific “Clean Energy-Environment State Action Plans” that will include sustainable energy policies and programs to promote energy efficiency. Memoranda of Understanding (MOUs) serve to clarify state agencies’ roles and EPA’s role in the partnership.

EPA will provide state partners with a technical assistance package consisting of planning, policy, technical, analytical and information resources. States will use these tools to design and implement strategies and will report progress annually. EPA also will direct partnering states to other federal programs that support clean energy-environment strategies.

EPA has estimated that the expected growth in demand for electricity could be cut in half by 2025 if all 50 states implemented cost-effective clean energy-environment policies, and that more demand could be met through a cleaner energy supply. This would mean annual savings of more than 900 billion kilowatt-hours and $70 billion in energy costs by 2025, while preventing the need for more than 300 power plants and the greenhouse gas emissions equivalent to those from 80 million of today’s vehicles.

For more information about this new program, please visit the EPA website at http://www.epa.gov/cleanenergy/stateandlocal/partners.htm

Alabama
House Bill 120 Introduced 2/1/05

HB120 would exempt certain energy-efficient products from state, county, and municipal sales tax.

Click here for more information

Arizona

House Bill 2390 Introduced 1/31/05

HB 2390 would revise standards relating to energy-efficient appliances sold in Arizona.

Click here for more information.

Colorado

House Bill 1133 Introduced 1/17/05

HB 1133 would authorize local governments to require investor-owned electric and gas utilities to collect an energy efficiency surcharge from customers and to direct the revenue into programs that promote the installation of cost-saving measures.It would also direct the public utilities commission (PUC) to adopt rules for distributors of natural gas to engage in conservation and energy efficiency programs, and require periodic reports subject to PUC review and approval.

Click here for more information.

House Bill 1162 Introduced 1/17/05

HB 1162 would adopt statutory energy-efficiency standards for certain household appliances, commercial equipment and traffic signals sold in Colorado on or after January 1, 2008 or installed in Colorado on or after January 1, 2009.

Click here for more information

Connecticut

House Bill 5876 Introduced 1/20/05

HB 5876 would allow fuel efficient single-occupancy vehicles to drive in high occupancy vehicle lanes.

Click here for more information

Senate Bill 776 Introduced 1/24/05

SB 776 would require the Secretary of the Office of Policy and Management and other officials to adopt the energy efficient components of the Leadership in Energy and Environmental Design Rating System for New Construction or Existing Buildings, as established by the United States Green Building Council, for state-owned and financed buildings.

Click here for more information

Georgia
House Resolution 14 Introduced 1/12/05

HR 14 would request that the United States Congress work to pass legislation allowing hybrid or alternative fueled passenger vehicles to use high occupancy vehicle lanes.

Click here for more information

***GA legislature homepage currently down.

Hawaii
House Bill 511 Introduced 1/24/05

HB 511 would authorize the public utilities commission to submit annual reports to the legislature on recommended incentives and strategies for the reduction of greenhouse gas emission from public utilities that supply electricity and independent power producers that supply power to the electric utility grid

Click here for more information

House Bill 1019 Introduced 1/26/05

HB 1019 would require the incorporation of Leadership in Energy and Environmental Design gold standards for buildings constructed or substantially renovated with funding consisting of fifty per cent or more in state funds.

Click here for more information

Senate Bill 570 Introduced 1/24/05

SB 570 would establish an income tax credit for purchase or retrofitting of hydrogen fuel cell systems and investment in production of alternative energy sources.

Click here for more information

Senate Bill 1553 Introduced 1/27/05

SB 1553 would direct the Department of Health to develop rules that achieve the maximum feasible reduction of greenhouse gases emitted by passenger vehicles, light-duty trucks, and other types of vehicles.

Click here for more information

Senate Bill 1710 Introduced 1/27/05

SB 1710 would direct the Department of Health to adopt rules to achieve the maximum feasible reduction of greenhouse gas emissions from noncommercial personal vehicles, provided that the average greenhouse gas emission reduction for new vehicles, starting with 2009 models, shall be at least 22% by 2013 and 30% by 2017.

Click here for more information

Indiana

Senate Bill 157 Introduced 1/4/05

SB 157 would establish an energy policy commission and would require the utility regulatory commission to provide funding and staff for the commission, which would be required to study certain energy issues and recommend a state energy policy before December 1, 2006.

Click here for more information

Senate Bill 216 Introduced 1/4/05

SB 216 would exempt certain energy efficient appliances from the state gross retail tax for sales occurring after June 30, 2005 and before January 1, 2010.

Click here for more information

Maine

Senate Bill 95 Introduced 1/18/05

Current law provides a sales tax exemption up to the amount that the clean fuel vehicle price exceeds the price of a gasoline-fueled or diesel-fueled internal combustion vehicle.SB 95 would exempt from the sales tax 100% of the sale or lease price of a hybrid gasoline-electric vehicle or a fuel-cell or hydrogen-fueled vehicle.

Click here for more information

Maryland

House Bill 142 Introduced 1/19/05

HB 142 would require the State Highway Administration to place traffic control devices indicating that high occupancy vehicle lanes may be used by inherently low emission vehicles and qualified hybrid vehicles.

Click here for more information

House Bill 367 Introduced 1/28/05

HB 367 would repeal a termination provision relating to exempting specified qualified hybrid vehicles from specified motor vehicle emissions test and inspection requirements under specified circumstances and would require the Motor Vehicle Administration to adopt these regulations.

Click here for more information

House Bill 368 Introduced 1/28/05

HB 368 would establish a credit equal to 50% of the motor vehicle excise tax for qualified electric and hybrid vehicles title in Maryland from July 1, 2005 to June 30, 2008; would require that qualified hybrid vehicles meet specified fuel economy ratings; would establish a maximum credit for electric and hybrid vehicles.

Click here for more information

Senate Bill 12 Introduced 1/12/05

SB 12 would establish a period of eligibility for a credit against the motor vehicle excise tax for qualified electric vehicles and hybrid vehicles from July 1, 2005 to June 30, 2009.

Click here for more information

Michigan

Senate Bill 14 Introduced 1/12/05

SB 14 would establish a tax credit of up to $1,000 for purchase of an alternative energy vehicle.

Click here for more information

Missouri

House Bill 226 Introduced 1/13/05

HB 226 would authorize an individual income tax credit for the purchase price of qualified hybrid vehicles that are powered by a combination of an electric motor and gasoline engine.

Click here for more information

Montana

Legislative Draft 1702 Drafted 1/7/05

LD 1702 would eliminate the date restriction for universal system benefits charge rates.

Click here for more information

New York

Senate Bill 92 Introduced 1/5/05

SB 92 would permit operators of hybrid vehicles to travel in high occupancy vehicle lanes regardless of the number of passengers in the vehicle.

Click here for more information

Oregon

Senate Bill 384 Introduced 1/25/05

SB 384 would eliminate registration fees for hybrid vehicles.

Click here for more information

Texas

House Bill 301 Introduced 2/2/05

HB 301 would amend the purposes for which the system benefit fund may be used to include a bill payment assistance program to provide an additional rate reduction for electric service customers who are or who have in their households one or more seriously ill or disabled low-income persons.

Click here for more information

House Bill 554 Introduced 2/7/05

HB 554 would amend the purposes for which the system benefit fund may be used to include educating residential and small business customers of available benefits of the fund.

Click here for more information

Vermont

House Bill 49 Introduced 1/14/05

HB49 would establish goals of greenhouse gas reduction to the 1990 level of emissions by 2010, and to levels 10 percent below the 1990 levels by 2020; would establish a Vermont climate action commission charged with developing a comprehensive climate change action plan by January 1, 2006.

Click here for more information

Virginia

House Joint Resolution 599 Introduced 1/12/05

HJR 599 would encourage the Department of General Services to recognize and incorporate the Leadership in Energy and Environmental Design Green Building Rating System energy, environmental and sustainability concepts into state and local practices for the design and procurement of construction projects.

Click here for more information

House Joint Resolution 600 Introduced 1/12/05

HJR 600 would encourage local school boards and local governing bodies to recognize and incorporate the Leadership in Energy and Environmental Design Green Building Rating System into state and local practices for the design and procurement of construction projects.

Click here for more information

Washington

House Bill 1059 Introduced 1/12/05

HB 1059 would require each electric utility to develop an integrated resource plan and would create a new energy efficiency standard and a new renewable energy standard.

Click here for more information

Back to the Top

The Responsible Energy Codes Alliance (RECA) continues its work to promote adoption of the International Energy Conservation Code (IECC). In January, RECA and its members were active in Arizona, Indiana, Michigan, Minnesota, New York and North Carolina. States to watch for code developments in the months ahead are Arizona, Indiana, Minnesota and
North Carolina.

Click here to visit the RECA website for more information.

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