A Senate committee approved an energy efficiency bill (S 1000) on July 14 with several provisions of interest to apartment firms.
Thanks to strong advocacy by NAA/NMHC and other real estate associations, the measure encourages improvements in building energy performance through provisions such as a loan guarantee program to assist property owners in financing energy efficiency upgrades in existing buildings.
Significantly, authors of the bill Sen. Jeanne Shaheen (D-NH) and Sen. Rob Portman (R-OH) substantially modified language regarding building energy code metrics that passed the House in 2009, which was strongly opposed by NAA/NMHC and other real estate trade associations, although the revised provisions remain problematic.
Prior legislative efforts would have required the Department of Energy (DOE) to adopt arbitrary code efficiency levels that were up to 50 percent more stringent than current code levels. S 1000 instead requires DOE to establish building efficiency targets and to develop building codes, accordingly.
While NAA/NMHC believe that this language provides flexibility in establishing target performance levels, a remaining concern is that an expanded role for the federal government in the building code arena will undermine the existing code development process and state-level code enforcement. Importantly, the bill specifically requires DOE to consider the cost effectiveness of new efficiency mandates.
Language also was removed that would have established a “zero-net energy” building performance goal by 2030.
It is unclear whether the measure can move through the Senate and House given competing priorities and budget concerns.