February 2005 State Energy Efficiency Bulletin

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).

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