Report confirms negligible savings after costly change

Energy cost savings related to controversial changes to the residential energy requirements of the International Energy Conservation Code would take 40 to 90 years to materialize, depending on climate, according to a report issued Feb. 24 by the U.S. Department of Energy.
The changes will ratchet up code requirements for insulation in wood-framed walls, adding at least $600 to the cost of an average new home while saving only about $15 a year in energy costs. The National Association of Home Builders opposes this increase in wall insulation requirements.
“NAHB supports building codes that promote energy efficiency, but home buyers should not bear the burden for expensive new requirements that provide little benefit,” said Jerry Howard, executive vice president and CEO of the National Association of Home Builders, in a news release. “Seven to 10 years, the average time a new-home buyer lives in his new home, is a more appropriate payback period for energy cost savings.”
The modifications increase wall insulation requirements, or R-values, in all climate zones for all types of wood-framed construction. Many insulation types, including sprayed cellulose and expanding foams, would not achieve the prescribed ratings without going to more expensive two-by-six walls.
The modifications were initiated in late 2003, after the Department of Energy proposed major reforms to simplify compliance with the International Energy Conservation Code.
In 2004, NAHB and other groups requested that DOE do a cost-benefit analysis on the modifications because stakeholders did not have a chance to study them before they were adopted.
NAHB stated it will use DOE’s data to advocate reasonable, appropriate reforms during the next round of code hearings. NAHB and other organizations will urge the International Energy Conservation Code Committee to go back to DOE’s originally proposed requirements.
“NAHB will continue its work to support appropriate code changes that promote energy efficiency and protect housing affordability,” Howard said.