Investment property

When the Going Gets Tough, Energy Policies Get Attention

Energy is the buzzword these days. Ever since deregulation was instituted, that silent entity upon which we have relied (and perhaps taken for granted) for generations is now in peril, especially in California, where utility companies are in huge trouble, hinting of possible bankruptcies and seeking rate hike approvals across the board. The Golden State has long been one of the nation’s leaders in energy conservation and reform. It is also no revelation that California also happens to possess nine of the ten least affordable housing markets in the country, placing utility costs under the microscope more than ever, and making it a testing ground for energy efficiency policies nation-wide. In an effort to literally “tighten up” houses to make them more energy-stingy, the California Building Industry Association (CBIA) chief executive officer, Robert Rivinius announced recently that standards for efficiency would be beefed up in the state already home to the toughest energy regulations in the country. CBIA says the Energy Commission is focusing primarily on two areas: a home’s duct system and its windows. Should the new rules be adopted, one of the new options that would go into effect in June would be the requirement that the HVAC ducts would be sealed even more securely than they are today, resulting in less than 6% of hot or cold air being lost before its reaches rooms vents. Another option would be the requirement of homebuilders to use the latest in window technology by installing window glass that reflects more of the sun’s rays during the summer, helping reduce demand during peak loads for air conditioner usage. “In all, the new standards are expected to make new homes between 12 and 15 percent more energy efficient,” noted Robert Rivinius, chief executive officer of the CBIA. For the state’s existing homeowners, homebuilder associations are working at the state and national levels to expand tax credits and programs aimed at making California’s 12 million existing housing units more energy efficient. Why would builders care so much about existing homes? According to CBIA, these homes consume far more than the approximately 150,000 new homes built each year there. Consumers have become more aware than ever that they should be looking just as closely at a home’s energy efficiency these days as they do the floor plan and the amenities within the home, whether brand new or re-sale. According to the National Association of Homebuilders (NAHB) HOMEBASE News, some of the most frequently asked questions regarding energy efficiency include the following, with NAHB’s responses: What types of windows should a homebuyers looks for in both updated older and in new homes? “Definitely look at double-glazed windows, especially those with two film layers. Argon gas-filled, double-glazed windows can increase R-values by 50% as compared to standards double-pane windows. Low-emittance (low E) glass can reduce energy costs as much as 35%. Check air infiltration rates of the window assembly (between 0.01 and 0.06 cfm/ft is good) and the window frame should be of non-conductive material (wood, fiberglass, or vinyl) or have a thermal break if metal.” Is bigger always better with air conditioners? “Assuming that the cooling load has been calculated correctly, it is generally better to slightly undersize equipment. An air conditioning unit that is oversized will use more electricity and “short-cycle” by satisfying the thermostat prematurely and thereby not removing the indoor humidity effectively, possibly causing moisture problems. An under-sized unit will run for longer periods of time and remove the humidity better.” · Can homeowners realize any savings with programmable thermostats? “Yes, through the proper use of the programming feature. For example, a five-degree setback for eight hours at night can save five to nine percent on heating bills with gas furnaces.”


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