The Necessity of Energy Codes
A variety of forces are influencing jurisdictions to adopt
energy codes as part of their building regulations. First,
there is a growing trend in major metropolitan areas to adopt
and implement energy codes. The National Association of Home
Builders (NAHB), the Colorado Association of Home Builders
(CAHB), and the Denver Home Builders Association (DHBA) all
recommend the adoption of the full International Residential
Code (IRC), which includes a chapter on energy efficiency.
Increasing environmental awareness among the general populace
has put pressure on politicians, regulators, and builders
to provide for higher levels of energy efficiency in homes.
In addition to societal concerns, this pressure is being driven
by other factors: energy supply, demand, and rising prices.
Higher energy prices will prevail when energy supplies dip
and this will necessitate increasing the energy-efficiency
of homes. In addition, demand for quality construction and
the potential for decreased field inspection costs should
encourage forward-looking local Colorado governments to adopt
energy codes.
The Future of
Energy Costs
Fossil fuel heats the bulk of U.S.
and Colorado homes. Fossil fuels are limited in supply, and
the easiest to reach supplies have been exhausted, both in
the U.S. and abroad. Thus, despite energy-efficiency improvements
in homebuilding over the last thirty years, demand is stretching
the limits of supply, and energy storage (especially natural
gas storage) is down dramatically. An energy code that meets
this challenge head-on will contribute to the interests of
the nation, the state, and homeowners.
Nationwide Natural Gas Production is Flat. The future
of energy in the U.S. looks bleak when considering the country’s
increasing reliance nationwide on natural gas. Production
from natural gas wells has fallen flat despite improved techniques
and an increase in the number of wells drilled. Taken for
granted by the public, the nation’s energy supply is
increasingly looking fragile to many industry experts. A harsh
winter in 2003 could seriously stress the system. As of April
2003, natural gas prices have never before been at a steeper
price (with the exception of the California energy crisis
during the winter of 2000-2001). Unlike prior peaks, experts
are not expecting a return to the lower natural gas prices
of the 1980s and 1990s. Instead increases are expected to
stretch permanently into the future. Utility prices will play
a bigger role in operating a home, and thus in the ability
to purchase one.
Colorado’s Natural Gas Leaving State. Colorado
historically enjoyed a plentiful supply of natural gas. However,
other states and private industry started tapping into this
supply in May of 2003, increasingly taking natural gas out
of the state to higher-paying consumers. Now Coloradoans are
competing for a supply they previously took for granted. In
March of 2003, Xcel Energy increased its rates for natural
gas by 39% while issuing a statement that pricing was a long-term
issue. Colorado homeowners will be paying increasing attention
to the cost of operating their homes, and an energy-efficient
home will grow in value as energy prices increase.
Reliance on Foreign Fossil Fuels Risky. Other nations
from whom we import natural gas are experiencing similar plateaus
in production. Natural gas prices are affected by events in
other fossil fuel markets as well, as lack of one fuel prompts
use of an alternative. Volatility in OPEC oil prices, which
will be the only production sector in the world that has not
peaked by 2005, will in turn affect U.S. energy prices. U.S.
national interests are best served by decreasing reliance
upon such energy sources as much as possible. Energy-efficient
homes are a good place to start.
Energy Efficiency
and Quality Homes
An important benefit resulting
from energy-efficient building techniques is the increased
quality of homes produced. Building an energy-efficient home
requires greater attention to detail, and a house-as-a-system
approach to building yields a home that is more energy efficient
but also provides a higher level of quality for its inhabitants.
Homebuyers and homeowners appreciate both the affordability
of an energy-efficient home, and its increased comfort and
durability. A jurisdiction with energy-efficient homes demonstrates
a commitment to the concerns of homeowners.
Affordability for Homeowners. Energy costs are always
a concern for homeowners. Homebuyers will increasingly consider
the cost of operating homes they are considering for purchase,
and homebuyers will seek relief from rising utility prices.
This will create pressure on public officials to take action
to improve building requirements in order to increase home
affordability.
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