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The Power of Energy Efficiency

Appear in: Builder and Developer, August 2001, VOL. 11, NO. 7

California's utilities companies aid homebuilders with programs and seminars to combat the energy crisis.

PG&E Solutions

In today’s market, the economic downturn coupled with increasing energy costs is adding up to a potential flag in new home sales. Now more than ever, homebuyers are demanding high value for their mortgage dollars - and not just at signing. Over the years, they want homes that will continue to save them money, without scrimping on comfort and beauty. If their house can help keep the environment healthy at the same time, all the better.

Homebuyers want built-in energy efficiency. In a recent professional builder’s consumer survey, over 2/3 of the respondents were willing to spend thousands more on a new home with energy efficient features. Prospective buyers often can afford to pay more for a new energy efficient home because they can count on monthly savings on energy bills. Well-built energy efficient homes can save up to 30 percent a year as compared to standard new homes. Here are a few examples of annual savings by end-use.

  • Super-efficient air conditioning reduces cooling costs up to 28%
    An Energy-efficient furnace and tightly sealed ducts reduce heating costs up to 22%
  • Natural gas cook tops and ranges cost 65% less to use
    Natural gas dryer connections offer the potential for savings of up to 80%
  • Energy-efficient windows can help reduce heating and cooling costs by 29%
  • Compact fluorescent light bulbs use 73% less energy than standard incandescent bulbs
Homebuyers aren’t alone in demanding energy efficient features in new construction. Building codes and standards have been stepped up in the face of the western region's energy crisis. California's new Title 24 Building Standards, adopted under Assembly Bill 970, which went into effect June 1, is one example of the call for regulated conservation.

By knowing which technologies and features can save the most energy - and learning how to install them correctly to maximize these savings - builders can meet or exceed codes, while also increasing customer appeal and satisfaction, lowering labor and equipment costs, reducing call backs, and bringing home higher profit margins.

In many areas, energy efficiency programs, like those run by some utility companies, offer builders and developers cash incentives for installing energy efficient features, along with system design and installation training, and marketing and sales tools. It's well worth spending a bit of time investigating such programs. There are numerous web sites that provide a wealth of related information. Utility company sites, like PG&E (www.pge.com), and the links pages on many industry association sites, such as those of the ICBO (www.icbo.org), EEBA (www.eeba.org), and BII (www.thebii.org) are treasure troves of energy efficiency information. All this makes it easy for you to gain a competitive edge and build homes that really move in any climate.

So Cal Edison Training Sessions

Much has been in the news about the electricity shortage affecting the entire state of California, which has led to rotating power outages already this year. In spite of uncertainty resulting from this energy crisis, Southern California Edison continues to work to ensure its customers are served in the best manner possible. To this end, it has worked extensively with the building industry and state regulatory agencies to help with the transition to more stringent energy efficiency measures called for in AB 970.

SCE is offering training sessions for builders to acquaint them with the implications of this legislation. Persons interested in attending should check the SCE Web site (www.sce.com) for dates and locations. As a result of AB 970, CHEERS (California Home Energy Efficiency Rating System) will need additional raters to conduct the more stringent HVAC inspections associated with the tighter energy efficiency requirements. Persons interested in working as raters will have an opportunity at the builder training sessions to learn more and to sign up for additional training in preparation for this role.

In addition to supporting builders and assisting CHEERS in recruiting raters, SCE is working with communities and local governments on energy assistance programs to encourage the implementation of voluntary energy efficiency standards that incorporate measures beyond those mandated by Title 24

Through its ComfortWise program, SCE continues to promote the construction and purchase of new homes that use 30 percent less energy than comparable housing. The program accomplished this by mechanically designing the HVAC system, incorporating spectrally selective glass, and conducting diagnostic testing and third party inspections. Additionally, through the ComfortWise program, SCE is offering a $250 per unit incentive for the downsizing of air conditioning units by at least one half ton. For more information regarding this program please contact Elisa Torres at (800) 338-8502.

SCE is offering a pilot program this year, which seeks to work with air conditioning manufacturers on offsetting the cost of higher efficiency air conditioning units that will ultimately be installed in residential new construction. For more information regarding this program please contact Michelle Thomas at (626) 302-8994.

SCE will continue offering Builder Energy Code Training in 2001. This is a broader look at the energy code and is intended to help increase builder's knowledge of Title 24, leading to improved compliance and quality assurance. In addition, SCE continues to offer the Builder Resource Guide, an encyclopedic reference of energy efficiency building information free to anyone in the building industry requesting it. For more information on the Builder Energy Code Training and the Builder Resource Guide, contact Lisa Brewer at 626-302-8707.

Builders play a vital role in energy conservation, as it is through today's construction that tomorrow's energy needs are determined. SCE is proud to provide builders with energy efficiency information, and will continue to work with developers in the delivery of electrical service to new subdivisions.

SCE's distribution planning organization has encouraged builders to provide as much notification as possible on project schedules to ensure that design and construction of new electrical distribution systems stay on target in these challenging times.

It is critical that builders and developers increase their communication efforts with SCE to ensure desired service levels are maintained within the building industry.

The Gas Co. Deals with New Title 24 Standards

Today's consumers are more aware than ever before about the importance of an energy efficient home. Southern California Gas Company (The Gas Company) is working with builders and HVAC contractors to ensure the construction of quality homes that will give the builder a competitive edge and attract more buyers.

As part of this effort, The Gas Co. offers no-cost training on the new Title 24 Standards that were effective June 1, under Assembly Bill 970. Classes on sizing, designing and installing high performance HVAC duct systems that are helping homeowners stay cooler in the Summer and warmer in the Winter, while helping to reduce energy bills, also are offered.

At these special Building Energy Code training seminars, builders, suppliers and contractors learn the economic benefits of tight ducts with third-party testing, spectrally selective glass, thermostatic expansion valves, radiant barriers and other measures now included in the Title 24 basic prescriptive package. The seminars also address the design and installation of high-performance HVAC systems, including high-performance duct installation and testing procedures. Already, about 800 building industry professionals have received the training.

The Gas Co. also makes classes available to the building and HVAC industries providing instruction on how to properly calculate heating and air-conditioning loads according to ACCA Manual J, and how to properly design air-distribution systems according to ACCA Manual D. Classes in HVAC diagnostics, as well as the proper sizing and installation of energy-efficient hydronic space heating are offered.

Builders and developers are encouraged to call 1-800-427-6584 for more information on the schedule and locations for the Fall 2001 seminar series. Information on other free resources is available at The Gas Co. Web site (www.socalgas.com).

- B&D

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