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comment Cap-and-Trade Bill Includes Federal Energy Code
Climate and energy policy took a big step forward, according to many environmentalists, when the U.S. House of Representatives passed the American Clean Energy and Security Act (ACES) in June 2009. The bill faces an uncertain future in the Senate, where it will wait until at least September for action.
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Most significantly for green building, the bill sets national energy-efficiency targets for residential and commercial building codes that ramp up over time: 30% improvement over ASHRAE 90.1-2004 when the bill is enacted, 50% by 2014, and 75% by 2030. Currently, states are responsible for setting building codes, leading to large variations in the stringency of energy requirements. ACES would allow the Secretary of Energy to set a national energy code that states would have to meet or exceed, and would give the federal government enforcement power over state and local government. According to Chris Cheatham, a construction attorney and author of the online news source Green Building Law Update, this enforcement provision “is a whole new Pandora’s box” for the legal community. “Cities have a hard enough time now with enforcing building codes,” he said, without the added burden of making sure they meet national standards. However, the provision also authorizes funding for education and enforcement assistance for states and municipalities, which would make the transition to the new codes easier.
ACES also creates the Retrofit for Energy and Environmental Performance (REEP) program, which would develop national guidelines for retrofitting all building types. The Secretary of Energy would use existing programs, such as Energy Star, to create REEP. Funding would go to states, which would offer incentives of up to 50% of the cost of the project for meeting the national guidelines. “We anticipate that a program like REEP would translate into a multimillion-dollar investment in energy efficiency in buildings,” said Jason Hartke, director of advocacy and public policy for the U.S. Green Building Council (USGBC).
Funding these provisions is a cap-and-trade system the bill sets up for large-scale greenhouse gas emitters such as utilities and oil refineries. The aggressive goal of the system would be to reduce emissions to 83% below 2005 levels by 2050. Companies would purchase emissions permits from the federal government, which would set the cap for each company. Those emitting more than their cap allows would need to purchase emissions reductions from others, making cleaner energy financially attractive. Money from permits would be used to fund the rest of ACES.
Unfortunately, says Hartke, “the House missed an opportunity to provide a really robust energy labeling tool.” ACES does set up a labeling program based on existing programs such as Energy Star, but it is limited in scope to new construction and is entirely voluntary. A demonstration program run by the U.S. Environmental Protection Agency and the U.S. Department of Energy would refine the label, which would then be used for federal buildings and be available for states and municipalities to use. However, the bill does not require labeling, nor does it set up a labeling program for existing buildings, where it might prove most useful.
Predicting the future of ACES in the Senate is difficult, especially with all of the other tasks facing Congress in 2009. But, says Hartke, “I’m encouraged. Everything I’ve seen shows that [Congress] really wants to get this done this year.”
Copyright 2009 by BuildingGreen, LLC
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