HomeMy WebLinkAboutMemo - Mail Packet - 4/26/2022 - Memorandum From Kirk Longstein Re: Council Follow Up Questions Related To Home Energy Scores And Point Of Sale Information
Page 1 of 3
Utilities
electric · stormwater · wastewater · water
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: April 20, 2022
TO: Mayor and City Council
THRU: Kelly DiMartino, Interim City Manager
Kendal Minor, Utilities Executive Director
Gretchen Stanford, Deputy Director Utilities Customer Connections
John Phelan, Energy Services Manager and Policy Advisor
FROM: Kirk Longstein, Energy Services Project Manager
RE: Council Follow up Questions related to Home Energy Scores and Point of Sale
Information
The purpose of this memo is to follow up with community member questions (from April 5) related to
the history and status of a home energy scoring and point of sale listing initiative.
Bottom Line
Exploring a residential Home Energy Score point of listing requirement is included as a future Next Move
in Our Climate Future but does not yet have an implementation timeline (Big Move 6 Efficiency,
Emissions Free Buildings, NM EEFB8). This Next Move is part of a larger market-based strategy that
includes the Building Energy and Water Scoring (BEWS) program and potential addition of building
performance standards to BEWS (NM EEFB7).
Strategy overview
Building energy scoring can generally be categorized as a market-based, behavioral strategy where
action is taken in the community as a result of new credible information being easily accessible and
transparent to key stakeholders. Market transformational activities are generally “long term” strategies
that can be used to stimulate action and can be initiated by several means, including by the City, other
organizations and/or industries. Energy savings are documented from behavioral or operational savings
as a result of tracking and benchmarking performance as well as longer-term investments in efficiency.
Examples of market transformational activities vary and can be initiated in a number of ways, including
through policies and ordinances, mandatory disclosures or be incentive-based. As an example, from a
health and indoor air quality perspective, a simple radon disclosure document included during a
residential point of sale has transformed the real estate market to the point where the vast majority of
homes that are sold include testing and consideration of the results in the home valuation.
Policy alignment
Our Climate Future includes several next moves that include building energy scoring market
transformation activities. Specifically, Big Move #6: Efficient, Emissions Free Buildings includes the
following next moves:
EEFGB7 - Explore adding performance standards to Building Energy and Water Scoring
program
EEFGB8 - Explore residential Home Energy Score point of listing requirement
These Next Moves are intended to promote transparency around commercial and residential building
energy and water use with the intent to drive market action.
Epic Homes and Home Energy Score
Epic Homes is a comprehensive program to help Fort Collins Utilities customers achieve more efficient,
comfortable, and healthy home living environments for homeowners and renters alike. The program
encompasses various offerings, including the Epic that documents energy improvements and
includes a Home Energy Score™.
Developed by DOE and its national laboratories, the Home Energy Score™ provides home owners,
buyers, and renters directly comparable and credible information about a home’s energy use. Like a
miles-per-gallon rating for a car, the Home Energy Score is based on a standard assessment of energy-
related assets to easily compare energy use across the housing market. See homeenergyscore.gov for
more information.
The Epic Homes assessment includes a reference, or baseline, Home Energy Score and a second Home
Energy Score is calculated upon completion of an efficiency project. There are currently approximately
2,000 homes in Fort Collins that have a Home Energy Score eligible for a certificate. See attached for a
sample certificate.
The completion certificate provides the homeowner with a credible documentation of their home
performance investment and can be uploaded to the Multiple Listing Service. The intent of the Epic
Certificate is to show beneficial home energy upgrades that may make a home more attractive to
potential buyers. Utilities also facilitates a real estate trade ally network to raise awareness of home
energy performance within this key stakeholder group.
Considerations for a Residential Home Energy Score Listing Requirement
Key considerations for the City to review prior to pursuing a requirements-based approach include:
Can a simpler disclosure model (similar to that for radon) accomplish similar benefits over time?
How would a home energy score requirement be enforced?
Would the requirement be for home sales, home rentals or both?
How would the capacity of energy advisors for Epic Homes be impacted?
What is an appropriate incentive for the initial assessment? The current Epic Homes model has
a homeowner cost of $60 for a ~$600 value.
As noted by the commenter at City Council, this topic was discussed via SARS and emails in 2015. At that
time, the Home Energy Score was still under development by the Department of Energy. The strategy
has continued to be included as an option, as currently expressed in Our Climate Future. In the interim,
the focus has been on developing the commercial benchmarking program (BEWS) described below.
Building Energy and Water Scoring Program
The Building Energy and Water Scoring (BEWS) program increases transparency and access to building
energy and water efficiency data for commercial and multifamily buildings 5,000 square feet and above.
The program enhances consumer choices and transparency in the real estate market, providing access
to information about building energy and water use to aid in sales and lease decisions. The alignment
with Utilities incentives provides additional benefits to covered building owners who use benchmarking
information when making decisions related to retrofitting existing buildings with energy conservation
investments. BEWS was adopted via Chapter 12 of the City Code by City Council in December 2018.
Benchmarking and transparency evaluation studies across the nation have shown direct behavioral
impacts of between 2 and 4% energy savings annually from behavioral and efficiency upgrades. These
studies confirm over several years of participation with benchmarking, between 4-8% savings might be
estimated.
During the first phase of the program’s implementation (2019-2020), 347 covered buildings greater than
20,000 square feet began reporting, and in year two (2021) 849 commercial and multifamily buildings
started reporting benchmarking data to the City. Starting June 1, 2022, approximately 2,700 commercial
and multifamily buildings will fall under the reporting requirements and staff will remit approximately
250 covered buildings’ benchmarking data to the State of Colorado for compliance with HB 21-1286.
In addition to the current BEWS ordinance, the City of Fort Collins is exploring a phased Building
Performance Standards (BPS) program as one of the next moves identified by the Our Climate Future
Plan. Staff are participating in a coalition of Mayors and resources provided by White House
(https://nationalbpscoalition.org). Performance targets of the BPS initiative will be set through a public
involvement process scheduled to start in 2023 with the goal of adoption by April 2024.
CC: Brian Tholl, Energy Services Supervisor
Glen Pease, Energy Services Engineer
Honore Depew, Climate Program Manager