REMARKS OF CHRISTINE PHOEBE

OFFICE OF ENERGY EFFIENCY AND RENEWABLE ENERGY

2004 NATIONAL WORKSHOP ON STATE BUILDING ENERGY CODES

PHILADELPHIA, PENNSYLVANIA

JULY 21, 2004

Thank you. It is an honor to join you at this year\'s National Workshop
on State Building Energy Codes. And, what a pleasure it is to be here in
Philadelphia. The show gets better each year!

A \"special thanks\" goes to:

Karine Shamlian from our Mid-Atlantic Regional Office for Codes

Also a \"big thanks\" to all others who were involved in making this
happen:

From our DOE Regional Office Staff: Tim Eastling, Dan Strout, John
Devine, Molly Dwyer, and Doug Seiter

From our Headquarters Staff: Jean Boulin, Mark Bailey and Teresa Carroll

From our PNNL Team: Diana Shankle, BECP Program Manager, Rosemarie
Bartlett, Pam Cole, Heather Dillon, Mark Halverson, Todd Taylor, Terry
Shoemaker, and Cecilia Mendoza

It is an exciting time for my Office and for the energy efficiency and
renewable energy technologies that we support. I would like to take this
opportunity to offer a few remarks on where our office is headed and
what some of our priorities are for the future. I\'ll do my best to
describe the Federal and state roles, particularly in building energy
codes. And I want to leave time for any questions or discussion you may
want.

**National Energy Policy**

The National Energy Policy which was released by President Bush just
three years ago, has set in motion a change in the nature of the
national debate over energy, and provide us with a roadmap to achieve
greater energy security through dependable, affordable, and
environmentally sound energy for the future. The National Energy Policy
established six general goals to guarantee America\'s continued growth
and prosperity:

First, the nation would aggressively reduce demand by employing energy
efficient technologies and encourage sound conservation measures as
essential components of our energy policy.

Second, even the most aggressive energy efficiency and conservation
programs would not be enough by themselves to bring supply and demand
into balance. And so, we would need to increase energy supply, with
special emphasis on domestic supply.

Third, to assure energy security, we would need to maintain a diversity
of fuels from a multiplicity of sources.

Fourth, we would need to dramatically upgrade our national energy
infrastructure. We recognized that we would need more than supply to
meet demand at affordable prices to consumers. We also need efficient
means to deliver energy from the source to the consumer. Our aging
infrastructure is inadequate to the task.

Fifth, we would need to accomplish our energy production, consumption,
and conservation goals while simultaneously building our successful
record of environmental protection.

And Sixth, we realized that our energy challenges would extend beyond 20
years. And so, we needed to provide a vision of the future in which
solutions to these challenges transcend current thinking about the
sources and uses of energy. The Secretary of Energy, Secretary of
Interior and EPA Administrator proudly report that within the last three
years we have made significant progress toward achieving each of these
goals.

The National Energy Policy proposed 105 specific recommendations for
action that would meet our short and medium-term needs and prepare our
nation for a leap into a transformed energy future. Most of these
recommendations could be handled through administrative action, and of
those, we have either completed, or are on our way to completing, well
over three-quarters of them. The remaining recommendations require
legislation, and Congress, at the President\'s urging, has also made
progress.

More than half of the Plan\'s 105 recommendations, 54 of them to be
exact pertained to the importance of improving this Nation\'s energy
efficiency and expanding our use of clean energy sources. We are still
committed to reducing energy costs and improving energy efficiency in
the buildings that house our homes and businesses, and we look to the
day when these buildings will generate much of their own power from
clean energy resources.

You will be interested to know that Congress is proposing to add \$2.5
million to the building energy codes budget for 2005; \$0.5 million for
the upgrading of model residential energy codes and \$2 million to help
deploy and implement energy codes (training and technical assistance).
Final approval of this still depends on approval in the House and Senate
conference.

Why this commitment? Because energy remains a critically important
issue. In the world, at this time, we are coming to grips with
technologies that can make our buildings and communities more energy
efficient and sustainable. There are any number of issues facing the
world economy and environment and your businesses. But fundamental to it
all is energy. The power needed to operate our nation\'s buildings uses
one-third of all the energy in the country and represents two thirds of
all the electricity. Oil consumption to heat and power\--our buildings
represent all the oil we import from Saudi Arabia. Energy use at these
levels also brings along commensurate pollution and costs us \$240
billion a year. If we can gain control of our buildings\' energy use, we
have a shot at making our world, our nation, and communities more
sustainable. Businesses can operate more reliably, affordably and
efficiently. Comfort and worker productivity can be enhanced. Buildings
can be more safe and secure.

**Opportunities**

We know virtually every building can achieve energy savings: 20, 30 even
50% over typical construction. We can achieve these results with smart
design and advanced, yet cost-effective, energy saving products. We need
to be familiar with new and emerging technologies. Advanced lighting
systems, solid state lighting, and day lighting are increasing in
importance. Fuel cells, natural gas, combined cooling, heating, and
power are technologies coming into greater use.

And we will continue our support for the development of \"zero energy\"
homes and buildings that combine the latest energy-efficient building
envelopes, appliances, lighting, advanced controls, and heating and
cooling systems to enable them to produce as much energy as they consume
on an annual basis.

Solar energy continues to grow in use as prices come down. It can
provide continuous service even when the grid goes down. It provides for
\"essential services\" in emergencies to be sure lights, elevators,
etc., can operate.

Instead of talking about 20, 30 or even 50% energy savings, my own
personal goal is120%\--buildings that use so little energy, and produce
their own, that they give back to the electric grid.

**Technology Deployment Strategy**

The Office of Energy Efficiency and Renewable Energy is in the process
of developing a Technology Deployment Strategy that will be completed by
the 4th quarter of 2004. The Weatherization and Intergovernmental
Program is conducting a reevaluation of its' program delivery processes
at this time to not only serve as a contributor to the overall
deployment strategy, but to increase our program efficiency and impact.
A key part of this work is improving the delivery of technical
assistance. Beginning with a kickoff meeting on April 26, 2004, a WIP
technical assistance team has analyzed current practices in technical
assistance and has begun to frame a strategy for improvement. A number
of you received a message asking for your feedback on a proposed
approach to delivering technical assistance described in an interim
report posted on our website.
(<http://www.eere.doe.gov/wip/tafeedback.html>)

**CODES PROGRESS**

One of the reasons I am so optimistic about achieving these ambitious
goals is the progress we are making in adopting and implementing
building energy codes. This is happening all over the country, in states
large and small.

I would please like to share the highlights of the progress made within
the states since we last met.

**Idaho**

The 2004 Idaho Legislative session has adopted the family of I-Codes
which includes the 2003 International Energy Conservation Codes (2003
IECC) and this year, the new addition is the 2003 International
Mechanical Code (2003 IMC). The 2003 codes can be adopted at the local
level at any time with a deadline of January 1, 2005, for mandatory
adoption.

**New Mexico**

The adoption of the 2003 International Energy Conservation Code was
finalized in May of 2004 by the New Mexico Construction Industries
Commission and went into effect on July 1, 2004. The action taken
incorporates all the details in the new energy code and eliminates
provision in the electrical code that allowed all commercial building to
have up to 2 watts per gross square foot in building lighting systems.
Please note that compliance using ASHRAE 90.1-2001 is allowed in this
new code.

**Mississippi**

ASHRAE Standard 90.1-99 was adopted for all new construction for state
owned buildings.

**Maryland**

Maryland's efforts this past year will result in the following:

Commercial: Effective September 20, 2004, the Maryland Building
Performance Standards (MBPS) will be based on the 2003 International
Building Code (including Chapter 13- Energy Efficiency) Maryland
Building Performance Standards (MBPS), based on the 2000 IECC, are
mandatory statewide.

Residential: Effective September 20, 2004, the Maryland Building
Performance Standards (MBPS) will be based on the 2003 International
Residential Code (including Chapter 11- Energy Efficiency).

**Utah**

Utah's Uniform Building Standard, has set the 2003 IECC with ASHRAE
90.1-2001 and upgraded lighting requirements as the current energy
standard for the state.

Effective July 1, 1998, low-rise residential buildings shall be designed
to comply with the requirements of the 1995 Model Energy Code.
Commercial and high-rise residential buildings are still required to
comply with the requirements of the ASHRAE/IESNA 90.1-1989.

**District of Columbia**

As of January 9, 2004, the District of Columbia has a new building code
based on the 2000 International Codes. This includes the 2000
International Energy Conservation Code, which was adopted without
amendment, except for administrative matters, which were moved to
Chapter 1 of the Building Code Supplement.

**Montana**

On April 26, 2004, the Montana Building Codes Council unanimously
approved adoption of the 2003 IECC, with exceptions. The draft proposal
included the following exceptions; 1.Basement wall insulation below
uninsulated floors, except for rim joist and perimeter cripple walls,
may be delayed until such time as the basement is actually finished for
occupancy. 2. Lesser R-value may be allowed for log building walls. 3.
The builder or representative shall sign, date and complete the energy
component label and permanently attach it to the interior electrical
panel.

**Pennsylvania**

The Pennsylvania Attorney General approved the Uniform Construction

Code (UCC) Administration and Enforcement Regulation. It incorporates
the International Energy Conservation Code 2003 and the International
Residential Code 2003 (a code for one- and two-family dwellings no more
than 3 stories in height). The UCC took effect on April 9, 2004, when
code official registration ended, and a grandfathering period began. The
UCC does not apply to projects that have already applied for permits, or
where design or construction contracts have been signed prior to the UCC
effective date.

**Colorado**

In Colorado, a home rule state, the La Plata County Commissioners voted
to amend the La Plata County Building Code by adopting the 2003
International Building Code, including the International Residential
Code (including Chapter 11 Energy Efficiency), the International Energy
Conservation Code, and other International Codes - effective June 1,
2004. This code will affect all unincorporated areas of La Plata County.

Colorado Springs adopted IECC 2000 with amendments, but is now working
to update that standard to the IECC 2003 without amendments. Denver is
back on track with a new mayor to adopt IECC, but no adoption date has
been set at this point. The New Home Stakeholders Group in Ft. Collins
is meeting regularly to integrate high performance building with efforts
to upgrade the local energy code.

**Nebraska**

Nebraska: The IECC 2000 was implemented for publicly-funded buildings,
effective January 1, 2004. Recently, a bill was introduced to upgrade
the State Energy Code for all buildings (not just publicly-funded
buildings) to IECC 2003 (effective July 1, 2005, if passed). While the
bill met with opposition from builders and code officials, the study
done through a 2002 Codes and Standards Special Projects grant was
instrumental in making the case for upgrading the State Energy Code to
the 2003 IECC.

**ON THE HORIZON**

**RES*check* and Above Code Advisor**

A prototype is being developed to provide real-time advise on above code
technologies and design techniques, as the user works through the code
compliance process with RES*check*. The \'Above Code Advisor\' will key
on users\' inputs and will assess possible improvements to proposed
designs that will save energy, at little or no extra cost, alerting the
user when advantageous options are available. The prototype will include
web-links and knowledge-base articles related to the above code
technologies and construction practices of the envelope components
included in REScheck. This approach could become a deployment path for
technologies and design guidelines from Building America and Energy Star
programs. At present, a prototype Above Code Advisor for REScheck is
being developed to demonstrate this concept.\"

**On Line Permitting**

We have developed an on-line permitting capability that will be
officially launched later this year. We have been working with a few
jurisdictions in the U.S. to demonstrate the capability. This capability
will allow compliance to be completely electronic, allow jurisdictions
to easily collect reports and data, and allow users to avoid trips to
the code office.

**RES*check* and Energy Star**

Discussions have been held with EPA about providing a link from the DOE
EnergyCodes.gov website to the Energy Star Builder Option Packages
(BOPs). EPA is currently re-visiting their BOPs, so any decisions will
depend on those results. However, the concept is that, while a user is
progressing through RES*check*, if the design approaches being 30% above
code, they will be notified that their design might qualify for an EPA
Energy Star rating and a link would be provided to EPA\'s website.

**CONCLUSION**

We understand that a large part of the solution to our challenges will
be found - not by Federal Government action alone - but in the efforts
of the private sector, states and local governments where innovation
flourishes and risk takers push the envelope.

We are steadfastly committed to heeding the President\'s call in the
National Energy Policy to expand the use of public-private partnerships
to revitalize our research and development efforts and meet our national
energy goals.

My Office looks forward to continuing the successful partnerships that
we have established with you. And with your help, we look forward to
realizing our shared vision of dependable, affordable, and
environmentally sound energy for the future.

Thank you very much. I will do my best to answer whatever questions you
may have.