US Energy Conservation Policies for

Sustainable Housing
Jean J. Boulin
Energy Efficiency and Renewable Energy
U.S. Department of Energy
 Energy
Efficiency

• Push • Pull
– Appliance Standards – EnergyStar
– Building Energy Codes • Appliances
• Home Energy Ratings
– Tax Credits

4/11/2007 2
Energy Star
Appliances
• Battery Chargers • Refrigerators & Freezers
• Clothes Washers • Room AC
• Dehumidifiers • Room Air Cleaners
• Dishwashers • Water Coolers

Home Electronics
• Battery Charging Systems • External Power Adapters
• Cordless Phones • Home Audio
• Combination Units • Televisions
• Digital-to-Analog Converter • VCRs
Boxes (DTAs)
• DVD Products
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Heating & Cooling
• Air-source Heat Pumps • Geothermal Heat Pumps
• Boilers • Home Sealing (Insulation)
• Central AC • Light Commercial
• Ceiling Fans • Programmable Thermostats
• Dehumidifiers • Room AC
• Furnaces • Ventilating Fans

Home Envelope Lighting

• Home Sealing (Insulation and Air • Compact Fluorescent Light Bulbs
Sealing) (CFLs)
• Roof Products • Residential Light Fixtures
• Windows, Doors, & Skylights • Ceiling Fans
• Exit Signs
• Traffic Signals

4/11/2007 4
ENERGY STAR Appliances
Program Goal:
• To encourage and educate homeowners
and the public on the benefits of replacing
inefficient appliances with ENERGY
STAR qualified appliances.
– As a result of the effort, increase the overall use of
ENERGY STAR qualified appliances and meet national
energy savings goals

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Other Product Specific Goals
• Primary objective for water heaters
– Speed the market adoption of advanced water
heater technologies
• through coordinated national efforts with industry,
states, utilities, and efficiency stakeholder groups.

4/11/2007 6
 Consumer Emblem Influence
82% 82%
77% Tremendous Influence
73% 73% Great Deal of Influence
18% 70% 68% 68%
28% 15% 65% Some Influence
21% 18% 11% 12% 58%
20%
18%
10%
31% 27%
48%
25% 25% 9% 41%
27%
30% 28% 25% 20% 7%
24%
15%
11%

33% 35% 32%

28% 31% 28%
24% 24% 25% 23% 24% 23%

4/11/2007 7
Source: Fairfield Research 3/05
 ENERGY STAR Market Share
90.00%

80.00%

70.00%
Percent ENERGY STAR

60.00%

AC
50.00%
CW
DW
40.00% RF

30.00%

20.00%

10.00%

0.00%
1998 1999 2000 2001 2002 2003 2004 2005
4/11/2007 8
Year
ENERGY STAR WINDOWS, DOORS, & SKYLIGHTS

• Independently tested and certified to meet

strict energy efficiency standards.
• Tailored to four
climate zones

4/11/2007 9
SAVING ENERGY
EQUALS SAVING MONEY
Save $110-$400 per year when
replacing single-pane windows with
Improved thermal ENERGY STAR qualified windows.
performance of ENERGY
STAR qualified windows,
doors, and skylights helps

4/11/2007 10
ENERGY STAR Qualified Homes

ENERGY STAR Requirements:

• home must meet the minimum requirements
• be verified and
field-tested by Climate Zones 6-8:
HERS Index 80
accredited Provider
Climate Zones 1-5:
• meet all codes HERS Index 85

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ENERGY STAR Home Requirements

• Envelope –
– Complete Thermal Bypass Inspection Checklist
• Ductwork
– Leakage ≤ 6 cfm (< 2800 cm3/sec) to outdoors / 100 ft2 (9.3
m2)
• ENERGY STAR Products
– At least one ENERGY STAR product category:
• Heating or cooling equipment 7; OR
• Windows 8; OR
• Five or more ENERGY STAR qualified light fixtures,
appliances, ceiling fans equipped with lighting fixtures, and/or
ventilation fans
4/11/2007 12
ENERGY STAR Home Requirements
• ENERGY STAR Scoring Exceptions .
– On-site power generation may not be used to decrease
the HERS Index to qualify
– A maximum of 20% of all screw-in light bulb sockets in
the home may use compact fluorescent lamps (CFLs) to
decrease the HERS Index for ENERGY STAR
compliance. CFLs used for this purpose must be
ENERGY STAR qualified.

4/11/2007 13
From Pull to Push
Energy Star
Codes and Standards

4/11/2007 14
 Federal Appliance
Manufacturing Standards
ƒ Federal standards keep consistent, national energy
efficiency requirements for selected appliances and
equipment.
ƒ DOE must upgrade Federal standards to the maximum
level of energy efficiency that is technically feasible and
economically justified.
– DOE strives to establish standards that maximize consumer
benefits and minimize negative impacts on manufacturers and
others.
4/11/2007 15
Appliance Standards
Appliance_____ Benefits – Cumulative
Energy NPV Water NOx Carbon
Savings Savings Savings Equiv.
(Quads) ($ Bil.) (tril gals) (kt) (Mt)

Refrigerators and Freezers (NAECA) 6.1 17.82

Refrigerators and Freezers (First update) 5.2 9.1
Refrigerators and Freezers (Second update) 6.67 1362 126.8
Room Air Conditioners (NAECA) 1.22 2.46
Room Air Conditioners (First update) 0.64 0.51 95 14.7
Central Air Conditioners (NAECA) 4.3 7.89
Central Air Conditioners (First update) 3.0 2.0 73 24
Clothes Dryers (First update) 0.82 1.3 196 17.9
Clothes Washers (First update) 0.57 0.53 0.006 107.8 11.7
Clothes Washers (Second update) 5.52 15.3 11.59 253.5 95.1
Dishwashers (First update) 6.29 0.43 0.24 173 17.9
Water Heaters (NAECA) 3.39 10.02
Water Heaters (First Update) 4.6 2.0 273.0 152
Gas Furnaces (NAECA) 8.04 8.31
Flourescent Lamp Ballasts (First Updates) 1.2 - 2.3 2.4 -3.9 34 - 60 11 - 19

4/11/2007 16
Appliance Standards Revisions
Product Category Final Action Date
Dishwashers March 2009
Commercial Clothes Washers March 2009
Residential Water Heaters March 2010
Room Air Conditioners June 2011
Clothes Dryers June 2011

4/11/2007 17
From Pull to Push (Lock in the savings)
Energy Star
Codes and Standards

4/11/2007 18
Incentive Criteria Revision
ƒ Significant energy savings
ƒ No impact on product performance
ƒ ENERGY STAR product is cost effective
ƒ Several technology options can achieve
criteria setting (one of which is non-proprietary)
ƒ Energy consumption can be quantified
ƒ Label differentiates products and is visible to
purchasers
4/11/2007 19
 Energy
Efficiency

• Push • Pull
– Appliance Standards – EnergyStar
– Building Energy Codes • Appliances
• Home Energy Ratings
– Tax Credits

4/11/2007 20
Tax Credits
• Construction Credit for New Energy Efficiency
Homes
– Methods for calculating and certifying energy savings and
equipment installation
– Definition of qualified individuals for certification
• Energy Efficiency Multi-Family High Rise
(Commercial) Building Deduction:
– Methods for qualifying software for calculating credit
– % targets for partial credit allowance
– Definition of qualified individuals and certification procedure
4/11/2007 21
Residential Tax Credits
• Consumer
– Solar Energy Systems
– Fuel Cells
– Home Improvements
• Appliances - manufacturer credit :
– Energy Star dishwashers
– Energy Star clothes washers
– Refrigerators that exceed standards
• New Homes - credit to builders
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 Solar Energy Systems
Solar Water Heaters
• 30% of Cost* up to $2000 (1.9 million KRW)
• Must supply 50% of home’s hot water
• Must be certified
• Cannot be used to heat pools or hot tubs
Photovoltaic Systems
• 30% of Cost* up to $2000

*Includes cost of installation

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Fuel Cells
• 30% of the Cost* up to $500 per 0.5 kW
• Minimum efficiency of 30%

*Including installation costs.

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Building Envelope Components
Product Type Specification Tax Credit
Windows IECC 04 or EnergyStar 10% up to $200
Storm Windows Storm plus existing meets 10% up to $200
&Skylights IECC 04
Doors IECC 04 10% up to $500
Combined wood door
Storm Doors default U-value plus storm 10% up to $500
< IECC 04
Insulation Total = IECC04 10% up to $500
Metal
4/11/2007
Roofs EnergyStar low heat gain 10% up to $500
25
Home Improvements
• $500 maximum (all taxable years)
• Two categories:
– Building envelope components
– Qualified energy property
• No credit for onsite preparation, assembly, or
installation of envelope components
• Tax payer may rely on manufacturer’s
certification

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Qualified Energy Property
Product Type Specification Tax Credit
Central Air- Split Sys. EER 12.5/SEER 15
Conditioner Pkgd. Sys. EER 12/SEER 14 $300
Air Source HP HSPF 9/EER 13/SEER 15 $300
Geo-Thermal HP Energy Star $300
Water Heater EF >0.80 $300
HP Water Heater EF > 2.0 $300
Furnaces & Boilers AFUE > 95 $150
Air Handler < 2% of total furnace energy $50
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 New Homes
• Substantially completed > 8/08/05
• Bought from contractor 12/31/05 - 1/01/08
• $2000 business credit
– certified heating and cooling energy 50% < IECC 2004
• $1000
– Energy Star
– HUD Code homes or
– certified heating & cooling energy 30% < IECC 2004 (installed
inspection required)
• < 10% reduction heating and cooling load from envelope
improvements
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 Certification Process
• Third party certification required
– Calculated energy savings using certified software
– Certified field inspection
• home built to design and modeled specifications
• Production builders (> 85 homes/yr)
– Can use EnergyStar Home sampling protocol
• Certification report describes:
– Envelope insulation R-values, fenestration U-factors,
SHGC
– HVAC equipment type and efficiency
– Software program used
4/11/2007 29
 Example Strategies (Hot Humid Climate)
House 1 House 2
• Walls R-19 2x6 R-19 2x6
• Ceiling R-60 R-40
• Reduced infiltration typical tight
• Air conditioner SEER 15 SEER 13
• Furnace AFUE 92.5 AFUE 80
• Ducts inside inside
• Estimated cost $1,635 $1,112
(~1.5 mil Wan)
* Two story 2500 ft2 (232 m2) house slab on grade with 18% window to floor
ratio.

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Multi-family High Rise (MFHR) Buildings
Tax Deduction
• Cost of energy efficient MFHR (commercial) building
property < $1.80/square foot (1.8 Wan/m2)
• In service December 31, 2005 to December 31, 2007
• Includes interior lighting systems, heating, cooling,
ventilation, and hot water systems, or building envelope
– Reduce associated total annual energy and power costs >50 percent
– Reference building minimum requirements of Standard 90.1–2001
• Energy simulation to justify the deduction.

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Multi-Family High-Rise Buildings Deduction

• Partially Qualifying Property

– If lighting, HVAC/W or envelope reduces
total annual energy and power costs of
combined usage for heating, cooling,
ventilation, hot water, and interior lighting by
16 2/3%
– Partial credit = $0.60 per sq. ft. (0.6 Wan/m2 )
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From Pull to Push (Lock in the savings)
Tax Credit
Codes

4/11/2007 33
Building Energy Codes
• DOE – assist model code organizations upgrade
their codes
– Three year increments
– Technically feasible & cost effective
• DOE – determine whether model code upgrade
would improve energy efficiency of residential
buildings
• States given 2 years to determine whether to
upgrade their codes -- if not, explain why

4/11/2007 34
Building Energy Codes (continued)
• DOE must provide financial and technical
assistance to States
– To upgrade, implement, and enforce, e.g.:
• Impact analyses
• Tools, information, training & materials
• State and local enforcement

4/11/2007 35
Building Energy Codes (continued)
• Incrementally raise the bar
• Off ramp for incentives
– Lock in savings

4/11/2007 36
 Energy
Efficiency

• Push • Pull
– Appliance Standards – EnergyStar
– Building Energy Codes • Appliances
• Home Energy Ratings
– Tax Credits
Policies for Sustainable Housing in the U.S.
4/11/2007 37