You may have read in the Jan. 1 editions of newspapers about several laws that went into effect for 2011 on that day. One of those is what is referred to as the "audit-upon-sale" law which now requires a home seller to supply to a buyer an energy use report for their home. There is a provision to opt out if both buyer and seller agree, and the new law does not apply to foreclosure sales.
It is my interpretation from reading the legislative testimony when this law was proposed back in 2007, that the intent was to have sellers provide to buyers a "comprehensive energy audit." Unfortunately when the law was passed in 2007, the definition of the "comprehensive energy audit" was not included, and was left to a workshop and public input process. That process started in early 2010, with a final document sent for adoption by the Nevada Energy Commissioner in December. The definition of a "comprehensive energy audit" was generally agreed to as a house analysis performed by a certified Residential Energy Services Network Energy Auditor. An audit requires a complete analysis of the building and how all of the components work together as a system to provide efficient use, occupant comfort, and protection from the weather. The information is input to a computer program that provides an energy efficiency rating for the home, commonly referred to as a HERS score (www.resnet.us). A lower score represents an efficient home, and a higher score being inefficient. A "comprehensive energy audit" should usually include a list of suggested upgrades to make a house more efficient, and the audit can range in price from $350 to $600, determined by house construction and size. The long-term benefit is to make our homes more energy efficient so the estimated $6 billion to $8 billion spent every year for purchasing energy from outside of Nevada can be reduced and the money saved could go into other sectors of our economy.
The proponents argued for the audits and energy upgrades to increase the efficiency of our homes and to lower utility costs. It is predicted that energy costs will rise in coming years due to the increased energy demands worldwide. Opponents argued that the required audit was a financial burden to any home sale, and therefore recent low home sale figures would drop even lower. During these workshop meetings, it was explained that a RESNET auditor must pass a comprehensive test that covers building science, principles of energy, air leakage, insulation, principles of heating and cooling, and health and safety. The auditor must then associate with a provider which is a RESNET-certified organization that oversees all activities performed by the auditor and serves as an industry quality assurance monitor. The designated provider has discipline powers, as does RESNET, for dealing with underperforming auditors. There are strict insurance minimums, a code of ethics and continuing education requirements every three years.
It was determined by the Nevada Energy Commissioner that the requirement to meet a "comprehensive energy audit" would be for the seller to complete a three-page questionnaire that can be downloaded from the Internet at http://renewableenergy.state.nv.us/. The questionnaire as adopted asks for the previous 12 months of energy use, the type of energy, the costs, dwelling information, the age of appliances, and the lighting types installed. Nowhere is the energy efficiency of the structure addressed, which is the true measure of how a house will perform and where upgrades can be made. The questionnaire reports the energy used which may be for two people, or for six people. These values will probably be quite different, but the houses may be the same model and size. The point is that the historical data is based upon occupancy and use, and does not reflect in any way how the house performs as a system.
There are several cities nationwide that have such a law, but Nevada was the first state proposing to adopt a law, and many energy advocates were watching. I have heard the rumblings about government intrusion, but the provision to opt-out allows for complete removal of the requirement. To me, Nevada took a side road and shirked our moral duty to reduce residential energy consumption, and to show the rest of the nation that Nevada is committed to doing our part. After all, aren't we touting to the world that Nevada is the next Silicon Valley for renewable energy resources? We have wind potential, over 300 heating degree days per year, and geothermal resources that have yet to be fully developed. Renewable energy use is good, but if someone wishes to install some form of renewable energy without an audit and installing recommended energy upgrades, then all they have done is replace their NV Energy utility source with a different plug so to speak. An audit for either a sale or "just because" will identify upgrades that, when made, can lower energy consumption by 20 percent or more for an average home of 10 years or older. If upgrades are made, then any renewable energy source can be sized smaller than previously needed, and save additional monies at time of placement.
It was also determined that if the homeowner decided not to prepare their own energy use report, that it should be prepared by a state-licensed home inspector. Home inspectors are well-trained and must pass a state-administered exam, and perform several probationary home inspections under a licensed inspector to become fully state certified. At the hearings, home inspectors admitted that they are not trained as energy auditors and therefore should not be made responsible for signing the disclosure form. RESNET auditors are not currently state-regulated, but are regulated by RESNET and their provider as I noted earlier.
With the recent predictions that gasoline will reach almost $4 per gallon by late spring 2011, everyone should be concerned about the impact on their quality of life. Fortunately, automakers realized the trend and are presenting new innovations in auto design with increased miles per gallon averages. Other industries are also implementing efficiency upgrades. Compare those many improvements to residential energy waste and what the state of Nevada just enacted for the audit-upon-sale law. I hope this legislative session will review the new law and make changes to provide more efficient homes in Nevada.
Leon Mills, owner of Energy Insight Inc. in Reno, is a RESNET Rater and a BPI Building Analyst. Contact him at 857-1039 or energyinsight@nvbell.net.
