Texas Builder, Jan/Feb 2016

Texas Association of Builders

January/February 2016

On Council

HB 1736:

Easing and Improving State Energy Code

Mandates on Builders and Consumers

for viable statutory performance path scores

that give consumers and home builders more

options to meet energy code requirements.

Failure to pass HB 1736 would have resulted

in economic hardship on consumers and

priced thousands of households out of the

market as the state energy code is updated

under existing law. The effective date for the

updated state energy code and the alternative

performance path is September 1, 2016.

Just as importantly as implementing a less

stringent performance path for builders

and consumers, HB 1736 sets a six year

minimum state energy code update cycle

for one and two family homes, meaning that

the state cannot update the state energy code

for residential homes more than once every

six years (though it should be noted that the

bill does not limit a municipality’s authority

to amend its respective energy code). The

proposed six year code cycle under HB

1736, which is being embraced by various

jurisdictions nationwide, does not affect

health and safety issues such as electrical,

foundation and plumbing code items, which

are separate from the energy codes. Moving

to a six year state cycle will, however, allow

the state, home builders and consumers to

maintain a reasonable pace of increasing

energy code mandates that will allow

manufacturers, suppliers and installers an

opportunity to more effectively comply with

energy code requirements.

The home building industry in Texas

has embraced energy efficient building

standards by allowing market forces to make

Texas a leader in energy efficient home

construction. In 2014

, Texas yet again lead

the nation in Energy Star homes with close

to 20,000 Energy Star qualified new homes,

ranking Texas as number six in the nation

in market penetration. Nevertheless, it is

important to note that a minimal amount

of energy use goes into powering new

homes. In fact, a 2007 study conducted

by the National Association of Home

Builders using data compiled by the Energy

Information Administration (the statistical

agency housed within the U.S. Department

of Energy) showed that while residential

buildings accounted for about 21 percent of

the nation’s total energy usage in 2001, the

newer homes built from 1991 to 2001 only

accounted for 2½ percent of that energy

consumption, and half of that energy was

lost in the grid before it even reached the

home. Recognizing the fact that energy code

stringency has increased exponentially since

2001, it stands to reason that new homes’

share of total energy consumption has

continued to decrease in a significant way.

In order to help our members better

understand and implement the new energy

codes and alternative performance path

(which become effective September 1, 2016),

TAB is offering Energy Code Training classes

beginning in January 2016 through the local

home builders associations across the state.

Please check with your local HBA executive

officer for information on when the class will

be held at your HBA.

In conclusion, it is important to remember

that this bill and the accompanying TAB

training classes will be crucial to reducing the

negative impact of future state energy code

mandates, while strengthening the energy

efficiency of current requirements. Texas will

continue to be a leader in energy efficiency

through market forces, while allowing

consumers and home builders a reasonable

energy performance path that allows for more

energy efficiency measures and cost effective

alternatives. Furthermore, HB 1736 will give

cities and other jurisdictions much sought

after guidance on how to best implement

and update their respective energy code

requirements. Such intelligent and rational

energy code policy will result in significantly

better compliance rates and effective price-

sensitive applications, benefiting all Texans,

not just a few select interest groups.

According to the latest Energy Star annual

figures as of this printing.

Ron Rohrbacher currently serves as

the volunteer chair of TAB’s Codes and

Standards Committee. Ron is the Director of

Construction for Perry Homes, a position he

has held since 1991.

ith the ever increasing inflexibility

and extraordinarily high stringency

of energy codes as brought about in

large part by a select group of municipalities

and out-of-state interest groups, housing

affordability and code compliance in Texas have

significantly suffered. To further complicate the

situation, the cost savings of energy efficient

features continue to be severely undervalued

in the appraisal process, resulting in delayed

closings and lost sales due to price increases. As

a result of these overly rigid energy mandates,

which lack market justification and significantly

increase the price of homes in some of the most

cost-sensitive markets, TAB pursued and won a

significant victory this past Legislative Session

by passing HB 1736 into law. This laudable

piece of legislation implements intelligent and

rational energy code policy that will result in

significantly better compliance rates and allow

for more cost effective implementation of the

state energy code. Without HB 1736, housing

affordability and code compliance would

continue to suffer as future energy codes are

updated under existing law, due to the ever

increasing inflexibility and extraordinarily

high stringency levels of the most current

energy requirements.

While HB 1736 updates the state’s energy

code for new one and two family homes to the

most up-to-date code by implementing the

energy provisions of the 2015 International

Residential Code (IRC), the target score for the

alternative performance path under the 2015

IRC is unrealistically stringent and does not

equate to the prescriptive (or regular) path of

the 2015 IRC. Therefore, HB 1736 also provides

By Ron Rohrbacher