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NEW REAL ESTATE ENERGY USE MANDATES INCLUDED IN THE ENERGY BILL

I've been reading the NEW CLEAN ENERGY LEGISLATION. New home builders and consumers will see dramatic changes in new home construction and/or new home prices.

Energy Efficiency Provisions

Building Standards.

ACES establishes new standards for building efficiency, requiring new buildings to be 30% more efficient in 2012 and 50% more efficient in 2016. States are offered allowances that they can sell to support adoption and enforcement of the new standards. The Department of Energy must enforce the standards in states that do not incorporate the building standards into their state building codes.

This mandate includes new residential construction.

Builders who have been incorporating energy efficient building techniques will be far ahead of the market. Reducing energy use standards by 30% by 2012 is quite a feat and I suspect that it will increase the cost of new construction a good bit. That may help the sale of resale homes until the improved energy efficience standards are extended to existing homes. The standards will be established to cover existing homes.

Section 202, Building Retrofit Program:

Establishes a program under which the Secretary of Energy and the Administrator of EPA support development of standards and processes for retrofitting existing commercial and residential buildings. Authorizes the Secretary of Energy to provide funding to states for cost-effective building retrofits, with funding increasing in proportion to efficiency achievement. Also supports improved water efficiency and other environmental goals and provides special levels of support for retrofits of historic buildings.

IT'S COMING FOLKS. I PLAN TO BECOME A GREEN CERTIFIED REALTOR IN SEPTEMBER.

New Homes

MANY BUILDERS HAVE ALREADY INCORPORATED "GREEN" MATERIALS AND FEATURES.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 07/02/2009 04:55 PM

Comments (31)

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Originally posted at: MD, VA Foreclosures, First Time Buyers Grants, CDA Loans MD, Rehab Loans MD & VA: NEW REAL ESTATE ENERGY USE MANDATES INCLUDED IN THE ENERGY BILL

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31 Comments on NEW REAL ESTATE ENERGY USE MANDATES INCLUDED IN THE ENERGY BILL

JUL

Hey Lenn,

I do see the future of greener, and my broker is also a home builder. He has the highest rating in our state for green built homes, and I am glad he is already prepared. Looks like I made a great choice to switch companies, we are looking to the future.

Lenn - I love this stuff and thanks for the info!

Lisa. Your builder is smart. The window of opportunity here, 2012 is pretty narrow. Some builders are going to have to completely revise their mechanicals, appliances, insulation, etc. Interesting.

Robert. So do I!

Is there a specific class to become a Green Certified Realtor provded by all states?

Does this effect prior built homes? Do they have to be brought up to the same or is it just new construction?

Sounds like an opportunity for some

Lenn - Yes, it's coming and those who prepare now will have a huge advantage. Just having a workable knowledge of sustainable construction will give agents and builders an edge.

Karen. We've had the class offered here for some time. Check your local board. You might have it too.

The one I plan to attend is given at my primary board and by the home inspector that I use. That'll be fun. He's fabulous.

Claude. My understanding is that the mandates for new construction will have to be in by 2012. Then they plan to require certain standards for resales later on.

I don't believe it will be long before a home will have to be brought to standard before it can transfer. Just my thinking.

They want to control every facet of our lives.

John. Agreed. It will come. I don't plan to be left behind.

In Austin, the city has just kicked in a new program last month that all homes have to have an energy audit to see if homes meet Green building standards. This is not a mandatory upgrade for the seller, but a second inspection required by the seller to disclose to the buyer. e.g. Toilets are 6 gallon and should be replaced with 1.6 gallon; AC is 12 SEER and should be upgraded to the minimum of 13 SEER, etc..... The market has not determined where this is all going to go, but there are negotiations taking place on this that would not have been done otherwise.

The idea is to, over time, incorporate all housing to green standards. As the green idea started here, expect this to spread across the country like a wildfire..........

Lenn - After reading so much ---- recently about the new legislation, I am really glad to find a thoughtful post from someone who actually read it. The fact that you not only read the bill, but have a plan on how to adapt your business is twice as refreshing.

Lenn - yes, it is coming. I will become green certified, but, I am not sure that business will increase because of it. I consider myself as having been "green" for most of my adult life, but, I think this is becoming somewhat draconian.

Lenn...

Although I like less government, this is ultimately a good thing for everyone!

Hi Lenn

I agree with you having a green designation will be a business advantage.

Good luck and success.

Lou Ludwig

Lenn,

Yeap, time to go green. I heard the discussion and the question was that there would be a requirement to retrofit existing homes, and, as far as I could understand, the idea is that the seller would have to do it prior to the sale, or, better say, it is the condition of the sale to happen. thsi could be quite costly

I am planning to attend several green building workshops in the next few months and I have been debating on the green certification as well.

JUL

Lenn thanks for taking the time to share this...I know I will be joining you in the same effort. It makes too much sense.

Who cares if we bankrupt the country and destroy businesses? Who cares if our energy costs raise 90%? All in the name of the environment! Of course, when we're a third-world country, our environment will really go to pot. Can you tell I'm not pleased about the MASSIVE energy tax the House just approved (cap & trade).

Absolutely ludicrous. A year ago people would have laughed at this bill. But after the $800,000,000,000.00 spending bill passed earlier this year, hey, the sky's the limit. More and more and more spending, this government is spending us into oblivion. EVERY dime spent comes from somewhere, REMEMBER!!! Over 31,000 American Scientists have signed off that man-made global climate change is a farce, and yet we have this bill. Instead of laughing, soon we will be crying.

Plan on going green certified here too. I now live in a community in Northern Colorado that is on the cutting edge of the GREEN movement...even the University here is coined as the "GREEN" University for their breakthrough programs in renewable energies. It is bringing jobs and stimulus dollars to the community...all good things. I could have moved anywhere...but chose my new community partly because I believe it to be one of the few areas that will prosper with this new think attitude. Change is hard for some people...but I am thrilled to see the shift towards protecting our future and planet.....those against this should come visit here in Colorado and see how GREEN living can be profitable and creates and excellent quality of life.

The Ontario Government was going to make it mandatory on resale homes but has backed off. Our Real Esate Association has put real pressure on the Government.

Some homes that are going to be torn down or completed renovated do not need this audit either.

My concern is Green Requirements will be so stringent that many people will end up living in nice green parks rather than homes.

Gene. You may not be too far off. If the green requirements for resales try to make home owners compliant in a Draconian way, which is what I fear, all it will do is further our decline as a nation.

Neither, the Obama and the Bush government before it had no cognizance that the housing industry leads the American economy.

Diane. Good for your Association. They've got their head on.

Kristi. Change isn't hard for me. I question the need for this as a priority, but we can't fight it.

Scott. I agree with you, but if we have to work with it, I'll lead the market in my area.

Beth. You're spon on IMO, but I'm not going to let my market get away from me.

Jim. It's going to be hard here. Ours is primarily old stock. This is going to be particularly difficult in Virginia. Maryland won't be so hard.

JL. Smart move. Me too.

Jon. While the present requirements are for new construction, the future amendments will require the same for resales on a gradual basis. It's coming.

Lou. Indeed. Have to get on board.

Richard. I'm not sure that the timing makes economic sense, but then neither does anything else that they're doing now either.

Mike. My business may not benifit if I'm up to date, but neither will it suffer.

Erik. Thanks. I read just about everything. What I read in the legislation was not to my liking. However, I respect the power that the election brings to those in power.

Tim. You make an important point, OVER TIME. I fear that the government plans to cram this down our necks. The housing industry is in bad enough shape now and they're just going to make it worse.

The "green" initiatives I hear about sound more like marketing gimmicks than real efforts. If we really wanted to limit our impact on the environment, we'd have to give up a lot more than I believe anyone is seriously willing to do. Why establish greater efficiencies of 30% or 50%? Why not 100%? Why build houses at all? Let's live in the park like Gene suggests. And while we're ruining our economy even further, countries like India and China will be improving their economies and standards of living -- moving way past us. It's just more bureaucracy and opportunity for corruption to achieve a phony goal. Of course, we will end up going along; that's the sad part. My opinion.

Diane. I agree completely. That isn't going to stop me from learning the new language and rules and regs so I can do my job right.

These actions, coming on board at this time are severely detrimental to our industry. We and the entire country will pay the price for this latest power grab.

Hi Lenn,

I am on the list for the Green Certification as well, I really do think it is going to be something buyers and sellers are going to want to have more information about. I have also been seeing in our local papers where builders are getting their designation as well.

Let us all be more energy efficient, can't hurt.

every time i see the word green used in marketing...i groan. i am glad to see that some associations have seen through this ridiculous developing issue. the cost of compliance will hammer the last of the equity remaining for some sellers...and drive the cost up for buyers who will be forced to pay for these retrofits. the proponents are licking their chops at the prospect of a captive audience of sellers who are REQUIRED to make alterations to a property that they would not have otherwise.

most regrettably, this is a tax on the poorest of the poor and is just the latest in Obama and his crews' effort to remake the nation in their socialist nanny state image. everything they see needs regulating. everything!

"green" is the biggest, most ridiculous load of crap i seen in my 50 years...any time you have to subsidze something that's de facto proof that it's not a wise economic act. i am in full agreement with diane, #24, Green is merely the latest marketing gimmick for a nation of sheep.

we can fight this and i do...cap and trade is perhaps the most destructive economic legislation ever to come down the pike. i have made it a priority to be vocal in an effort to stop this blanket tax on energy that will ripple through the economy and decimate what's left of our industry.

while we are all waiting for the nation to wake up and see that they've been had by a very smooth operator...here's my plan to use 50% less motor fuel. ready? buy a diesel automobile. i get 20 to the gallon in the big dodge and have plans to buy a VW TDI that will get 50! that's roughly THREE TIMES the mileage that most american cars get. if the car companies would deliver a diesel option in half their offering we could have the arabs out of business in 24 months. another beauty of diesels is that they have no battery waste bomb at the end of their service life...like your hybrids.

The madness continues. This is a very bad bill. Ironically, I might have to be like you and jump on this change because that it what we have to do in order to be successful.

JUL

Deborah. I'm getting green training as a necessity of my business. Smart agents will do so.

Michael. You're right on target. Sadly, he's got the office and is consolidating power at a rapid rate. We'll be living with these economy killing mandates for decades to come.

Mike. You got the message.

My question is where does this stop? Are they going to start making older homes to have energy efficient windows in or a more efficient heater system in before it can be sold? Most think it may not happen, but ask yourself, did you have to change out the smoke detectors in the last older home you sold because they didn't meet current code?

Todd Clark - www.LivingBeaverton.com

I think the 30% is an agressive hope. As Todd says, when will the government get their noses out of business. Grandfathered code or standards is just what will happen. I love the programs on TV that talk about we installed a 'green bamboo flooring' - YEAH and they thru out perfectly good carpet to put in the landfill for a stupid HGTV program. Yeah that's saving the planet all right!

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