Texas Agencies Weigh New Efficiency Requirements for Utilities, Homebuilders

HOUSTON – Texans could save billions of dollars in electricity costs in coming years if two state agencies move forward with proposals to require utilities and homebuilders to achieve greater levels of energy efficiency. Environment Texas applauded the proposals, citing their potential to cut pollution, create jobs and reduce need for new power plants. The group also released a new analysis estimating the long-term potential for building efficiency in the state. 

“Let’s not waste any more time, any more energy, or any more money on outdated buildings,” said Environment Texas Director Luke Metzger. “We need to invest in efficiency today so we can start building a better tomorrow.” 

Two state agencies are individually considering new rules to require homebuilders and electric utilities to significantly boost energy efficiency investments. First, Comptroller Susan Combs and the State Energy Conservation Office (SECO) have issued a draft rule to require new homes to be approximately 15% more energy efficient than currently required. Second, the Public Utility Commission (PUC) of Texas has issued a draft rule to require electric utilities to more than double their investment in energy efficiency programs, such as rebates for “Energy Star” homes. 

America’s buildings consume more than 40 percent of our total energy, which amounts to almost 10 percent of all the energy used in the world. Much of this energy is wasted due to inadequate insulation, inefficient heating and cooling systems, and poor construction techniques. The National Academy of Sciences estimates that widespread use of today’s technology would increase energy efficiency by up to 30 percent in existing buildings by 2030, and with the rapid march of technological innovation and increased investment in efficiency from governments and consumers, much bigger gains are possible.  

Environment Texas released Building Better: How High-Efficiency Buildings Will Save Money and Reduce Global Warming, a new report which analyzes the benefits Texas would see if we committed to dramatically improving the energy efficiency of new and existing buildings. The report uses government data to estimate reduced energy consumption, decreased fossil fuel use, money saved on energy bills, and global warming pollution prevented in 2030 and 2050. The report finds that Texas families could save $1,603.41 every year on their energy bills by 2030 if the government invests in the energy efficiency of our buildings today. Saving energy in our buildings would also help Texas’ fight against global warming by reducing projected greenhouse gas emissions from buildings by 39% percent. The proposals by SECO and PUC are important steps forward to achieving the gains found in the report.  

Making our buildings more efficient would reduce the projected energy use of Texas’ buildings 38% percent by 2030. That would conserve enough energy every year to power 20 million homes, more than any other state in the country. These enormous energy savings translate directly into financial savings in the form of reduced energy bills. The average Texas family of four can expect to save $1,603.41 a year by 2030, which is 38 percent lower than what they would be paying without the improvements in building efficiency.  

“That’s the best part about making energy efficiency improvements,” said Metzger. “They pay for themselves as consumers enjoy lower energy bills and a cleaner environment year after year.” 

Reduced energy consumption in Texas would also prevent the emission of 99.44 million tons of global warming pollution every year by 2030, which is equivalent to taking 18.08 million cars off the road. Texas has the potential to reduce its CO2 emissions more than any other state in the county. 

“We’ve barely scratched the surface of what’s possible with energy efficiency in buildings,” said Julie Hendricks of the U.S. Green Building Council. “There is a massive amount of waste in existing buildings– and even in some new buildings that are built only to minimum code standards!  We can do much better, and we should.  Our legacy to future generations is to build all of our structures to the highest performance standards available.  We know significant energy savings are readily achievable, because we’re already doing it.” 

The American Recovery and Reinvestment Act provided $16 billion for efficiency-boosting retrofit and weatherization programs, and Congress is now considering major initiatives like HOME STAR and Building STAR that would provide financial incentives for efficiency improvements in residential and commercial buildings. 

Environment Texas is calling for policies that will help us reach our efficiency goals, including:

    * Adopting the PUC proposal to increase utility investments in energy efficiency by 150% by 2015
    * Strengthening and adopting and the SECO proposal to require greater minimum energy efficiency standards for new residential and commercial properties.
    * Steady improvements to building codes over time so that all new buildings are increasingly efficient, culminating in a zero net energy standard by 2030. This means that in 20 years, every new building that is constructed will be so efficient that it can produce all the power it needs right onsite from renewable sources like solar panels or wind turbines.
    * Investing in energy retrofits and weatherization to improve the efficiency of existing buildings 30 percent by 2030.
    * Supporting innovative financing mechanisms that will unleash public and private investment in building efficiency.

 “There are already hundreds of super-efficient buildings all around Texas,” concluded Metzger. “Most buildings last for decades, so investing in energy efficiency locks in savings for years to come and builds a strong foundation for the future of our environment and our economy.”