Final Establishing a Home Energy Audit Standard, Adopting Best Practices, Providing Consumer Protections A Green Paper by Neal Lewis, Esq., Executive Director and Andrew Manitt, Research Coordinator A Green Paper June 2010 Executive Summary keting and other communication with the general public. Long Island to Lead on Home Energy Retrofits The lack of such a clear definition has the potential to cre- ate confusion in the marketplace as to the services available Improving home energy efficiency is one of the quickest and to homeowners. It is worthwhile to consider whether this most economical means to significantly reduce energy waste, potential confusion could be counterproductive to efforts to utility bills and carbon dioxide emissions. Major initiatives to encourage home efficiency retrofits. There may be instances promote residential energy retrofits are being launched this when a homeowner would knowingly choose a less compre- year on Long Island. The evaluation of home energy perfor- hensive analysis of a home’s energy performance. However, mance and the identification of measures to improve that if a homeowners unknowingly receives an evaluation that performance are central to efforts to promote residential en- does not conform to the definition used by federal, state, local ergy efficiency retrofits. Federal, state and local governments, or utility programs, it could hamper his or her ability to take as well as utilities, are all currently planning, developing, or advantage of these programs to receive tax credits, rebates implementing residential efficiency retrofit programs. These or other incentives, potentially creating bad publicity and programs will require evaluation of homes, and confirmation decreased participation in these programs. of efficiency gains. The procedure that is often called on for those tasks is a comprehensive Home Energy Audit. Protecting Consumers and Elevating the Profession Defining a Home Energy Audit The creation of a standard could serve to elevate the profes- sionalism of the growing residential energy service industry. It With this multiplicity of programs, the question arises as to could also enhance consumer protection and help to ensure whether there is a commonly accepted definition of a Home that consumers can make informed choices when making Energy Audit and, if not, whether there is a need for one. A decisions about improving the efficiency of their homes. survey of laws, industry standards and certification programs indicates that there is a significant agreement on the accept- The recommendations of this report are focused on model able authorities for promulgating standards of procedure and legislation to provide a definition of Home Energy Audits, certification for Home Energy Audits. However there is not a and to require disclosure when services that do not meet that strong legal definition or standard for use of the term in mar- definition are marketed. The SUSTAINABILITY IN S TITUTE AT MOLLOY COLLEGE Green Papers are non-partisan issue analyses presented with the goal of developing viable rec- ommendations, viewed through the lens of sustainability and the “triple bottom line” of environment, economy and social equity, that can make Long Island a better, more sustainable place to live. The purpose is to identify policies with that will establish Long Island as a national leader in implementing sustainable solutions. Green Papers provide facts, arguments and proposals in a manner that will encourage informed, respectful interchange among parties with varying viewpoints. A core mission of the Sustainability Institute is to foster informed debate concerning issues of environmental sustainability, consistent with Molloy College’s mission of developing ethical leadership through transformative education. Molloy is committed to academic excellence with re- spect for each person. To further these ends, Green Papers are intended to raise the level of public discourse through the free, respectful exchange of differing ideas. The Sustainability Institute’s recommendations included in this paper are based on the research and experience of the authors, and do not necessarily represent the opinions of the administration or Board of Trustees of Molloy College. 1 Defining a Comprehensive Home to the property. A municipal corporation may, by local law, provide for the certification of such contractors based upon Energy Audit criteria at least as stringent as the state-wide criteria for certification adopted by the authority for purposes of this The question of what constitutes a Home Energy Audit can be article. separated into three topics: 1) authority and accreditation; 2) procedures; and 3) verification and quality assurance. New York State Town Law, Article 12-A Establishment or Exten- sion of Improvement Districts — Alternate Procedure, § 209-i The term Home Energy Audit is not defined for the purposes of Town. Refuse and garbage improvement districts. Defines marketing services. Since 2009, however, definitions of ”en- “energy audit” as: ergy audit” do exist in New York State law for the purposes of municipal sustainable energy loans (General Municipal Law) a formal evaluation by a qualified contractor, who shall be and benefit assessments (Town Law). These legal definitions approved by the town board, of the energy consumption of are based on the certification or qualification of contractors, a residential property for the purpose of identifying meth- not on required procedures. However, the criteria used for the ods to improve energy efficiency and reduce energy waste. qualification of contractors can result in particular standards for procedures and quality assurance coming into use, as the lead- Under these sections of the New York State law, the proce- ing entities that accredit contractors also promulgate standards dures entailed in a energy audit are not delineated, instead the to which they hold these contractors. authority to qualify contractors that may perform the service is assigned to the New York State Energy Research and Develop- 1. Authority and accreditation ment Authority (NYSERDA) with the provision that municipali- ties may adopt more stringent criteria for federally funded New York State General Municipal Law, Article 5-L Municipal sustainable energy loan programs, and to towns for benefit Sustainable Energy Loan Program, section 119-ff 3 defines assessments through refuse and garbage districts. “energy audit” as: NYSERDA has not yet officially announced a list of certified a formal evaluation of the energy consumption of a perma- contractors or approved a certifying entity for sustainable en- nent building or structural improvement to real property, ergy loan programs. However, NYSERDA has required Building conducted by a contractor certified by the [New York State Performance Institute (BPI) accredited contractors for work per- Energy Research and Development] authority, or certified formed for the Home Performance with ENERGY STAR program by a certifying entity approved by the authority for pur- and Residential Energy Services Network (RESNET) accredited poses of this article, for the purpose of identifying appro- raters for the ENERGY STAR Homes program. In meetings priate energy efficiency improvements that could be made NYSERDA staff has indicated that BPI certification will likely be 2 required for audits performed for sustainable energy loans. on the subject, and legislation currently being considered by Congress provides insight as to potential future requirements. In addition to the Home Performance with ENERGY STAR pro- gram, which was developed by the U.S. EPA and Department As noted above, many programs of both federal and state of Energy and administered by NYSERDA in New York State government recognize BPI and RESNET as authorities on home and LIPA on Long Island, Babylon’s Long Island Green Homes energy analysis, and on the certification of professionals in the program also requires participating contractors be BPI certified field. or accredited. New York State Division of Housing and Com- munity Renewal rules require that audits done as part of the Based on the lack of a legal standard for the required proce- federal Weatherization Assistance Program, administered on dures of a home energy audit, and the wide acceptance and Long Island by the CDC, be performed by a BPI certified build- credibility of the organizations that have promulgated stan- ing analyst. dards (BPI and RESNET), it seems reasonable to accept those standards as a best practices standard for a comprehensive The RESNET Home Energy Rating System (HERS) is utilized by Home Energy Audit. the ENERGY STAR Homes program developed by the Environ- mental Protection Agency and administered in New York State The BPI Home Energy Auditing (EA-7) Standard and RESNET by NYSERDA and on Long Island by LIPA. National Standard for Home Energy Audits are multi-page documents and the subject of significant training courses. It RESNET National Standard for Home Energy Audits requires the is not our intention to replicate them here, although there are certified auditor be a Home Energy Rater certified by RESNET some elements of these standards that are worth pointing out. and a Building Analyst certified by BPI. Both require that performance testing (including blower door On the Federal level, the PACE Policy Framework developed tests), combustion appliance testing (carbon monoxide safety by the White House (released October 13, 2009) refers to “an testing) and computer modeling of the home’s