Austin Energy Audits: Will Buyers Want Greener Homes?

 

The city of Austin is going green.  A new energy ordinance will take effect in 2009 that will require homeowners to have an energy efficiency audit done prior to selling their home.

 

In Austin, energy performance has a lot to do with how efficiently the central AC and heating system works.  In our hot climate we are more concerned about cooling than heating, but both are used during our hot and cold seasons.  The new law aims to reduce energy usage by making AC systems more efficient.  This means:

 

Reducing the loss of conditioned air through cracks in doorways and windows.

 

Finding leaks and closing gaps in AC ducts. (Ducts often have 10% – 30% leakage!)

 

Improving the level of insulation in the attic to retain conditioned air.

 

Keeping the hot sun out with solar screens on windows.

 

After some controversy, the law stopped short of making energy upgrades mandatory.  In today’s market, no one wants to make it harder or more costly to sell a house.  So, the law was pared back to require sellers of homes to have an energy audit, and disclose the results to potential buyers. 

 

But will buyers demand that the home they buy pass muster in terms of energy efficiency?  The market will have to sort this out.  But, over time they probably will.  Sellers will anticipate this by taking steps to correct areas of wasteful energy loss in their home.  Most sellers would rather not have a negative report to show prospective buyers.  They will want to have a clean bill of health.  And the items required for testing are kind of fundamental, we have to admit. 

 

In fact, they are so fundamental that they have been long ignored.  These are not the green features that are visually appealing or ego satisfying.  We don’t see them featured in Dwell Magazine.  We are not talking about wind turbines, or rainwater catchment, or solar panels, or Icestone counters.  We are talking about things that most people would rather not think about.  Like caulk and duct mastic.  And, unglamorous dark screens and dusty old attic insulation.  These are not the upgrades that cause buyers to say, “I love it.” 

 

So they haven’t been getting a lot of attention.  The new energy audit law is going change all that.  It will bring these behind-the-scenes basics into the limelight.  Old houses will meet new tech.  It will give homeowners a roadmap to improve energy efficiency.  That will mean lower utility bills.  And fewer carbon-spewing power plants.   And, in the long run, a greener Austin.  

 

Austin Energy Audit

 

Austin Energy Ordinance 

 

Austin’s New Energy Ordinance: Two Ways to Comply

In June of this year Austin’s new Energy Audit and Disclosure Ordinance will take effect.  This law requires that the seller of a house must have the house checked for energy efficiency, and disclose the status to potential buyers.  It applies to homes in the city of Austin that are over ten years old; and that are served by Austin Energy.  There are two ways to meet the requirements of the ordinance:

 

Audit Plan

 

Homes must be audited for energy efficiency prior to being sold.  Under the law you do not have to make the repairs noted in the audit.  You do have to provide a copy of the audit to the buyer.  If the house needs major work, you could apply for an exception from the audit requirement.  

 

Although repairs are not required, the de facto result is that home sellers will be pressured to make the upgrades.  Most sellers would prefer not to offer a negative report on their home to prospective buyers.  In any market, a loss of value is not something to be taken lightly.  So, in many cases, it makes sense to complete the repairs before putting a home on the market.  

 

The energy audit will check these four items:

 

          Duct pressure test on the AC ducts to check for leaks.

 

          R value of the insulation in the attic.  

 

          Weather-stripping on doors.

 

Shade screens or window film on the south, east and west side.

 

The Austin Energy Website lists their registered contractors who do energy audits.  They are called Energy Raters.  The cost of the audit will vary.  I have heard quotes of $300 for 2,000 square feet, with cost/size increments.  The audit report must be attached to the Seller’s Disclosure when the home is sold, and is good for ten years. 

 

If you elect to have repairs done, the most efficient place to go is Austin Energy’s list of Home Performance contractors.  These are city registered contractors who do energy related repairs.  When the work is complete, an inspector from Austin Energy will inspect the work and clear any building permits that were obtained.

 

At this time, paperwork for rebates will be submitted to the city by the contractor.  About 20% of the cost of some upgrades can be rebated.  Texas Gas Service offers some additional rebates.  And, you may be entitled to some federal tax credits. Save your receipts and check with your accountant on this. 

 

 

Energy Star Plan

 

Homes that have participated in the Home Performance with Energy Star Certificate program within the last ten years are exempt from the audit requirement.  This program is an alternate way to comply with the energy ordinance.  Low interest loans are available for participants in this program.     

 

To participate, call a Home Performance contractor for an energy analysis.  Some of these companies offer a free analysis in conjunction with a bid for the work.  An inspector from Austin Energy will review the analysis and the bids for proposed work. 

 

The inspection will cover the following:

 

Central air conditioning and heating or heat pump

 

Air Duct sealing or replacement

 

R value of the insulation in the attic.

 

Shade screens or window film on the south, east and west side

 

To receive an Energy Star Certificate of Completion you must be in compliance with at least three of the above items; (or) you must receive a rebate of at least $500 from Austin Energy.  When the work is complete, an inspector from Austin Energy will inspect the work and clear any permits.  Rebates will be submitted by the contractor.  A copy of your certificate of completion should be attached to your seller’s disclosure.  It is good for ten years.      

 

Summary

 

The Audit plan allows you to simply disclose the results of an audit.  Or, you may choose to correct some, or all, of the repairs.  

 

The Energy Star plan is an established program that predates the Energy Audit requirement.  You may get a free energy analysis by a participating contractor who will also bid for the repairs.  To get a certificate of completion you have to comply with at least three of the listed items.        

 

At this time, the energy audit disclosure applies only to Austin Energy customers within the city of Austin.  However, it is likely that energy inspections will become a part of the sale process throughout the region.  The outcome will be the re-weatherizing of older structures to make them more efficient and less costly to live in.  And, that is a good thing.   

 

Website:  Austin’s Energy Ordinance

 

Client’s Energy Upgrade:  Kathleen’s Story

 

 

 

 

 

Austin Energy Upgrades – Kathleen’s Story

 

A valued client of mine was kind enough to answer some questions about the AC upgrades to her home. This process may be mandated by the city of Austin in the future.  I wondered how energy audits have been working for people.  Feel free to send an email with your story.

 

What motivated you to reduce energy consumption? 

When I bought my home my Realtor gave me the phone number for the City of Austin thermostat conversion.  This is a free service that the City of Austin provides. The interesting thing about these thermostats is that the City can cycle them off remotely for 15 minutes during very high demand periods, which helps to avoid brown-outs.  This remote-cycling really has no effect on the customer.  You really don’t even notice it unless you are looking at thermostat and see the red light on. The temperature in your house really doesn’t change. 

 

 

To sign up for the Power Partner Free Thermostat Program visit:   www.austin.energy.com, or call (877) 549- 2774.

 

 

Later, I purchased an energy efficient washer, dryer, and refrigerator.  I did this for water conservation and lower electric bills.  I try to be a minimal energy consumer. 

 

 

Why did you decide to get an energy audit?

The thermostat was working great, and I had some good discussions with the City of Austin person they sent out.  He mentioned that they do energy audits for homes for free.  I filed that info in the back of my mind.  

 

 

When the summer temps started to climb, my bottom floor AC acted up, and really crashed.  I had a 1 year home warranty contract on my home.  When I called them, they reviewed the AC, but really were not going to take any “heroic” steps to improve my AC.  It dated from the early 80’s, and was going to continue to be unpredictable.

 

 

Did you use the City of Austin website? 

I did some research at the point of my AC problems, and really tried to decide if it was worth it to make a heroic (and expensive) effort to improve my home.  I did use the City of Austin website to see what “approved” vendors they had listed.  I also got a reference from family members.  I chose an approved vendor from the City of Austin website to come out and review my AC for repair versus replacement.  

 

 

What was the first step you took to get started? 

I contacted an approved vendor on the City of Austin website.  

 

 

Did you get the “free home inspection?”

Yes.

 

 

Did you interview several contractors?

No.  I could have gotten lots of bids, but I went with one that had been used by family members, and had done a quality job.

 

 

Was the City of Austin website easy to understand?

The vendor really was the one who facilitated all the paperwork and inspections.  

 

Were you satisfied with the contractor that you used?

Extremely satisfied.  The contractor facilitated and knew all the steps to take to get the energy audit.  They made it very easy for me, the consumer.

 

 

Did you complete all recommendations?

Yes.  I had new AC units installed, ducts sealed, insulation removed and new insulation installed, plus new solar screens installed on windows. 

 

How long did the process take?

Several weeks. 

 

 

Was there an inspection process?

Yes.  A permit was taken out at the City of Austin, and a building inspector inspected the work after all changes were made.  By selecting a contractor on their website, you already know the City of Austin has placed their trust in them, and know they do quality work to meet the requirements.

 

 

What did you do to upgrade your home?

Installed two new AC units
Removed all old attic insulation
Blew in all new insulation
Sealed all “drafty” areas
Put solar screens on windows that faced certain directions
Bought energy efficient appliances 

 

Did the AC company contract other people to do the screens, insulation, and other non AC items?  Or, did they do these items also?

The company I worked with did facilitate and organize all visits from the other subcontractors for screens, and insulation removal and installation

 

 

Did you pay only one bill?  Or bills to various contractors?

If I remember correctly, I paid only one bill to the company I worked with directly.

 

 

Was the house itself tested for air leaks?  This would address weather-stripping and caulking issues.

Yes

 

 

Was the AC duct work tested for air leaks?  This would address leaks in duct joints. 

Yes

 

 

How much did you spend?

$12-15,000

 

 

Anything else?

I would say that it is not just being a conscientious-energy consumer that would motivate people to make energy improvements to their home.  There are also incentives to do this in the form of lower energy bills, and federal incentives.   The federal incentives were in place until the end of 2007, but maybe they have been extended.  The City of Austin also helps with funding and incentives which they describe in detail on their website. 

It helps to have a guide through this process.  Having an approved, certified, trusted partner of the City of Austin put my mind at ease.  They led me through the process to retrofit an older home and achieve the Energy Certification.

Let me know if there are more questions.  I tried to be as complete as possible, but may have forgotten things.  I have not found the audit yet, but will keep looking.

Warm regards-
Kathleen

Solar Panels Not Pretty?

I recently wrote a guest editorial for the Statesman regarding a City of Austin task force that was considering how to improve the energy efficiency of existing homes.   A good friend, with a great sense of humor, sent me this email:

“Very well written.  It’s scary how our “leaders” would propose something so drastic that would have a HUGE affect on the housing prices/market. Did they not think it thru at all??????  Kinda like building EVERY house to ADA standards??  Great idea Betty.  :-/
 
Another very interesting thing is that most HOA’s don’t allow solar panels on the roof where they can be seen.  So we want to save the environment, but only if it’s “pretty”?  The City has the same rule for commercial development…..they force us to hide any solar panels that are put on the roof.  Why add cost to an already expensive but environmentally smart idea?????”

I enjoyed his email, and was very surprised to hear about the solar panels.  Homeowner Associations opose solar panels that can be seen?  Whoa, we need to talk!  

Solar panels are an important part of Austin’s energy future.  In 2007 the City Council of Austin passed amendments to the building code that will require by 2015 that each new home to be “zero energy capable.” 

 

This means that new homes must consume no more energy in one year than could be produced by a moderately sized solar array or other renewable system currently available.  We may also begin to see some wind powered generators installed on homes.   

The Green Building Fair held last week in Fredericksburg, Texas, demonstrated a variety of new alternative energy sources.     

By converting sunlight into electricity, solar panels will reduce the demand for electricity through Austin Energy.  Austin Energy makes electricity mostly by burning coal and natural gas.  Solar panels are a way to reduce energy consumption by individual homeowners and by the community as a whole. 

They are functional, they are fashionable, and I guess we could say that beauty is in the eye of the beholder!

Solar Panels

 Austin Texas Real Estate Guide 

Blogs:

Green Building Project

Real Estate Market

Austin Energy Upgrades

 

 

Energy Audit and the Seller Disclosure

I recently wrote a guest editorial regarding the City of Austin’s initiative to improve the energy efficiency of existing homes.  A good friend, Bill Moore, whose opinion I respect, sent me an email, and I would like to quote it here:

 

“I did read the article. I thought it was very well done.   I don’t totally agree with your conclusion. Just as the health of the citizenry depends on the septic systems being periodically evaluated and rebuilt at a sales transfer there should be a mandate of some sort at some time to force the improvement of the performance of the existing housing stock. The use of fossil fuels to heat and cool houses to maintain the constant temperature that everyone expects is a far worse threat to the very survival of humanity. If all use of fossil fuels stopped today the worldwide temperature would rise another 50 years before leveling off. The consequences of inaction are catastrophic. There are massive amounts of information out there to support the claims of the climate scientists. And every year another huge chunk of the ice shelf melts that they were convinced would last another 100 years. We are already 30 years too late. We pay more now and sweat more now, or we swim to Central Park and plant Sonora cactus in Austin.”

 

Bill is one of Austin’s original green builders, and has been on the cutting edge of green construction techniques for a long time.  I believe we are slowly moving in the direction that Bill would like to see Austin move as a community.  Gas prices are causing people to re-think their needs and lifestyle.  And, the city is taking steps to move Austin in a green direction.  A task force recently submitted their report on ways to improve the energy efficiency of existing homes. 

 

Regarding single family homes, one proposal is this:  The seller of a house must have an energy audit done, and must add the audit report to their seller’s disclosure.  The seller’s disclosure is an informational form that is required by law to be provided by the seller to the buyer of their home.  

 

If this proposal is made into law, an energy checkup will be required on homes of a certain age that are being sold.  This will make the buyer more aware of how a house performs, energy wise, and what could be done to improve it.  Any audit recommendations would be negotiated between the buyer and seller.  The buyer may ask that the seller make repairs or upgrades; or the buyer may make them himself after closing; or the buyer may choose not to make them. 

 

Bill brought up septic systems, and this might be considered a parallel issue.  It is typical for the buyer to get a septic system evaluation during the contract inspection period.  If repairs are recommended, they are negotiated between buyer and seller.  Sometimes the seller will have the septic checked before marketing the home, in order to avoid surprises later.  Regardless of who orders or pays for the septic inspection, any recommended repairs are negotiated between buyer and seller.  There is no law that I am aware of that requires upgrades to a septic system in connection with the sale of a home. 

 

I think that most people want to save money on utilities and live in a healthier environment.  We need to find ways to do this.  And, more that ever, we need people like Bill to help us get there.

Austin Texas Real Estate Guide 

Blogs:

Green Building Project

Real Estate Market

Austin Energy Upgrades  

 

 

 

Energy Upgrades for Houses at Point of Sale

In December, 2007, the City of Austin created a task force to recommend revisions to city code that would lead Austin in a greener direction.  One purpose of the task force was to consider how to encourage homeowners to retrofit their homes to improve their energy performance.  One of the ideas considered was making energy upgrades mandatory at the point of sale of a property. 

 

I think most people agree that making Austin a greener city is a worthy goal.  We are moving in that direction as individuals and as a community.  However, I think that energy upgrades and transfer of property ownership are two unrelated processes that should not be tied together.  Both can have unexpected problems and timing issues.  

 

Fortunately, the task force report stopped short of making energy upgrades mandatory before or after the sale of a home.  However, if a certain percentage of sold homes are not upgraded, then mandatory upgrades at “point of sale” could take effect. 

 

The proposal submitted by the task force requires that Austin homes must have an energy audit prior to being sold.  The audit results are to be attached to the seller’s disclosure.  Some types of deed transfers will be exempt from this requirement.

 

Here is an excerpt from their report: 

 

–The Task Force recommends that the City of Austin require that a Seller of a non-exempt home disclose to a prospective buyer the results of an energy audit of the home at the same time that the Seller makes other disclosures required under Texas law.

 

–The audit would be prepared by an individual or company authorized by Austin Energy.

 

–The audit would include visual inspections as well as the testing of the mechanical or air conditioning system air leakage using methods and standards approved by the City of Austin Energy Code (duct blaster test, blower door subtraction test, etc.).

 

 

The required energy audit will provide the buyer with knowledge of how the home performs and what improvements might be made.  The auditor’s recommendations are a matter for negotiation between the buyer and seller.  The seller could make all or some of the upgrades.  Or, the buyer could make upgrades after closing.  Or, the buyer could choose not to make any upgrades.   

If this ordinance is passed, it is expected to reach about 2.3% of the housing stock in the city.   

What is really needed is a much broader program to educate and motivate people to get their homes tested and upgraded.  Professional organizations, neighborhood associations, and environmental groups could join in a common effort to get this done.  And, is it too much to ask Austin Energy to offer a lower electric rate for homes that are audit compliant? 

Austin Texas Real Estate Guide 

Blogs:

Green Building Project

Real Estate Market

Austin Energy Upgrades