New Energy Regulations

A report in RIS Media's Real Estate Magazine (January 2015 edition) indicates that the Department of Energy has enacted new regulations of which real estate professional need to be aware.  The report appears on pages 25-27 of the Real Estate Magazine and relates to air conditioning units and hot water heaters.  The rules for air conditioning units have been evolving over a number of years and the latest change to the U.S. Department of Energy ("DOE") rules for air conditioning units takes effect as of 01.01.2015.  The new rules affecting hot water heaters are contained in an amendment  to the National Appliance Energy Conservation Act and is known as the "2015 DOE Final Rule".

The rule regarding air conditioning units are somewhat confusing and will be impacted by the part of the country in which the property is located in which the new unit is being installed.  Basically stated, the new rule requires that newly installed units have a "Seasonal Energy Efficiency Ration" of 14, rather than the prior standard of 13.  However this energy efficiency ratio can be affected by the area in which the unit is being used and the nature of the structure being cooled.  It is estimated that average annual savings with the new, more efficient units can range from $13 - $167.  Hardly seems worth the effort, but energy conservation is important

The required increase in efficient may be more costly than previously required efficiency upgrades as going from a 13 SEER unit to a 14 SEER unit may necessitate changing the entire unit.  New indoor coils will be required and there may be some problems encountered in fitting larger units into space that was designed for the less efficient, older units.  Structural changes may be required to accommodate the larger units. 

A history of rule changes by DOE affecting residential air conditioning units can be found HERE.  The first rules regarding residential a/c units were implemented in 1992.

The DOE has also enacted new rules regarding hot water heaters.  Commencing with hot water units that are replaced on and after April 16, 2015, new, more efficient units will be required.  This new rule will affect all types of hot water heaters regardless of the fuel used.  The requirements for the new replacement units will vary depending upon size and fuel type.  Again the changes may be minor, but some changes may require larger units which may entail new plumbing and structural changes to the building to accommodate larger units.

Hot water heaters (boilers) have been regulated by the DOE since 1987.  The history of regulations and the new standards can be found HERE.

Real Estate Professional will need to consult with contractors and engineers in their respective areas to determine the proper replacement units.  This is a complicated and confusing situation and is not a "one size fits all" solution.

A/C Unit image courtesy of johnpamplin.com

Hot Water unit image courtesy of pixgood.com