Don't Be Misled: Climate Bill Does Not Impose Retrofit Requirements on Homeowners

Posted: 20-Jul-2009; Updated: 21-Jul-2009

We've seen wild claims and outright misinformation about provisions in the climate bill relating to energy-efficiency retrofits for existing homes and commercial buildings.

The general theme is this: The cap-and-trade bill requires homeowners to have an energy audit and make expensive upgrades to meet federal "green" standards before they would be allowed to sell their homes.

These claims are entirely false.

• The climate bill does not require anyone to have an energy audit before they can sell their home.
• It does not require homeowners to make efficiency upgrades before they can sell their homes.
• Instead, the bill establishes a voluntary, incentive-based program to encourage energy-efficiency retrofits. And it encourages states to adopt an efficiency labeling program—one that would apply to new construction only.

What the legislation really does:

• EPA and DOE would establish a voluntary retrofit program for homes and commercial buildings. Standards would be established for energy audits, retrofit measures, verification of energy savings, financial assistance for energy audits and upgrades, fiscal controls, etc.
• Financial assistance would be available to property owners who choose to participate. Using money that comes from emission allowances¹, states that elect to participate would provide property owners up to 50 percent of the cost of upgrades.
• EPA would establish a model labeling program for energy efficiency in new homes and commercial buildings. Working with stakeholders, the agency would craft guidelines for measuring energy efficiency in new homes and commercial buildings and would create standards for labels to tell prospective buyers and renters how efficient a property is.
• The labeling program would apply to new construction only. If a state or locality elects to participate and adopts a labeling program that meets the federal guidelines, it would be eligible for funds to help support the program. Participating states and localities may only apply the labeling program to new construction, and there is also an express prohibition against attaching efficiency labels in the middle of a sales transaction.

¹ The American Clean Energy and Security Act directs approx 6% of emission allowances to newly established State Energy and Environment Development (SEED) Accounts, for use by state energy offices in deployment of energy efficiency and renewable energy programs. The retrofit program and the labeling programs would be eligible for funding from SEED Accounts.