# Presentation: 117972

## National Energy Code Conference 

***July 16, 2002***
***Des Moines, IA***

**Energy Codes and the Insurance Industry:**** Opportunities to Profit from Partnership**

**Mike DeWein, BCAP Technical Director**

## BCAP	

- Mission: promote adoption & implementation of up-to-date energy codes
- Non-profit group
- Founded in 1994 in response to EPAct
- Sponsored by ASE, NRDC, ACEEE
- Funded by DOE & Energy Foundation

## BCAP:  What We Do

- Advocacy
- Bring together local groups & recognized experts
- Promote the energy-efficiency message
- Promote the adoption of state/city energy codes and standards
- Technical support
- Help states and other groups develop policy
- Facilitate/help groups develop training plans and find resources
- Education/outreach & research-
- Respond to wide range of code-related inquiries
- Produce newsletters, issue briefs & position papers
- Maintain extensive database and website
- Promote the Energy Code message in many sectors

## HI*

**HI***

**FL**

**WA**

**MT***

**ND***

**AL***

**KS**

**NM**

**CT**

**OK**

**WY**

**ID**

**NV**

**AZ***

**AK**

**CO**

**SD**

**NE**

**TX**

**LA**

**MS**

**IL**

**MO**

**MI**

**ME**

**WV**

**NJ**

**GA**

**SC**

**NC**

**OH**

**MN**

**WI**

**VT**

**NH**

**RI**

**MA**

**VA**

**DE**

**CA**

**UT**

**OR**

**AR**

**TN**

**IA**

**IN**

**KY**

**MD**

**PA**

**NY**

**MEC Versions**

- Statewide code both mandatory and voluntary

- 2000 IECC or IRC or equivalent state code in adoption process

-   (15)

- 1995 MEC or equivalent state code

-    (9)

- 1995 MEC or equivalent state code (partial adoption)

-   (5)

- 1993 MEC or equivalent state code

-   (5)

- 1992 MEC or equivalent state code

-   (4)

- No code or code not EPAct compliant

-    (11)

**June 2002**

- Code implementation depends upon voluntary adoption by local jurisdictions.

- *

**RESIDENTIAL ENERGY CODE STATUS**

**Building Codes Assistance Project**

## COMMERCIAL ENERGY CODE STATUS

**IA**

**VT**

**NV**

**NM**

**AZ***

**AR**

**LA**

**FL**

**GA**

**SC**

**NC**

**OH**

**VA**

**MD**

**NJ**

**NY**

**CT**

**MA**

**NH**

**ME**

**AL**

**WY**

**AK**

**SD**

**NE**

**OK**

**TX**

**MS**

**IL**

**MO**

**MI**

**WV**

**KS**

**MN**

**WI**

**RI**

**DE**

**CA**

**UT**

**OR**

**WA**

**MT**

**TN**

**IN**

**KY**

**PA**

**CO***

**HI *******

**ID***

**ND*******

**COMMERCIAL ENERGY CODE STATUS**

**Commercial Code**

- ASHRAE 90.1-1989

-   (26)

- State Owned Only

-  (9)

- Weaker/None

-     (9)

**June 2002**

- * Indicates that the code adoption depends on voluntary adoption  by local jurisdictions.

**Building Codes Assistance Project**

- ASHRAE 90.1-1999 or equivalent being adopted

-  (6)

_**Challenge**_

***Codes are not being well Implemented:***
***Training Inadequate***
***Compliance Low***
***Misunderstanding of Requirements and how to build them into buildings***
***We’re NOT getting the projected energy savings OR building better buildings***

## The Building as a Beast!

**The way we construct our buildings today may be working against us...  As:**
- Homeowners
- Building Owners/Operators
- Policy Makers
- States and Jurisdictions
- Code Enforcement Agencies
**INSURANCE COMPANIES/UNDERWRITERS!**

## The Building is a System

**Including:**
- Envelope
- HVAC
- HVAC Distribution
- Ventilation
- Other Systems
- OCCUPANTS!

**How can we do a BETTER JOB with Codes?**

## Energy Codes: 

**	****How to make them work better?**

**Create Partnerships to better implement them!**

**Let’s start a coordinated process to improve the situation today!**

**Issues of Common Interest:**

- Building Failures/Claims
- Builder Callbacks
- Liability
- Prevention Loss Prevention

## Problem: Moisture

**Notes:**
What causes this?
Moisture coming from attached conditioned space into unconditioned attic, condensing out

## Why is Moisture Important?

**Moisture damage contributes to ****over 90%**** of all building and building material failures (ASHRAE)**
**Except for structural errors, moisture is the leading cause of building problems costing more than ****9 billion dollars**** annually in the US. (ASTM)**
**Moisture-related problems lead the list of top callbacks for most Builders.**
**Numerous consumer surveys list moisture problems as a primary concern **

## Fact:

**The #1 callback for builders on a newly constructed home is due to moisture problems. Annual cost to builders is: ****	****$5.3 billion dollars.**
*— **National Association of Home Builders*

**Notes:**
The energy efficient provisions of the Energy Code reduce callbacks. Warranty and call back expenses are the number one dilemma for builders/developers. Energy efficient strategies reduce drywall cracking, nail pops, paint and trim problems, dust marking of carpets, ice dams, pipe freeze, comfort complaints, and perhaps most importantly:  mold, mildew, rot and other moisture problems.  Last year in Cincinnati, one contractor alone went out of business after incurring a $20 to $50 million liability due to mold and moisture damage.  Except for structural errors moisture is the leading cause of building problems costing $9 billion annually in the U.S. 

## Case Study From JLC

_**Zaring Homes:**_
**Building over 1,500 homes a year during the mid-1990s**
**Annual profits of over $6 million**
**Dozens of its new homes became moldy in 1999**
**The remedies soon became so expensive it drove the company to bankruptcy.**

## Case Study (Continued)

**"Zaring Homes went out of business because they have a $20 to 50 million liability here," says Joe Lstiburek**
**"Hundreds of homes are potentially involved. To fix the problems would probably cost $60,000 to $70,000 per home."**

**"I told him, 'If you add another inch and a half of insulation to the walls, you will avoid the dew-point conditions,'" recalls Vamosi. **
**"Zaring answered, 'I can't do that because it costs too much. **

## Problem – Mold/Rot!

**Problem – Mold/Rot!**

## Solution - Energy Code Requirements for

- Proper Air Sealing
- Insulation Continuity and quality of installation
- Duct sealing
- More later

## Problem:

**700 Heat Deaths in Chicago – 1995**
***46 deaths due to cold waves in the U.S. -1995***
**Snowstorms of Great Lakes States**
**Power Outages**

**Problem:**
**Extreme Weather Episodes**

## Solutions:

**Energy Code Requirements**
**Better Envelope Requirements**
**Air Sealing**
**Improved HVAC Efficiency and Sizing**
**Incentives for Renewable Energy  **
**“****Cool Roofs”**

**Notes:**
Code compliant buildings reduce Extreme Temperature Episodes by mitigating urban heat catastrophes. The energy efficient provisions of the energy code work in concert as a means to control indoor air temperature during heat waves in summer and ultra-cold weather events in winter.  Some cities such as Chicago are adding requirements to the energy code for lower roofing material albedos, further reducing the “urban heat island” phenomenon. 

Positioning homes for passive solar orientation, air-sealing and installing appropriate insulation and better windows are the first line of defense against keeping heat out in the summer and heat in during the winter.  

Solar energy systems can help maintain lighting systems following natural disasters. 

## Problem: Global Warming

- Problem: Global Warming

- In 1996, 1.5 million new homes built in US
- The average home emits twice as much ghg as the average car
***Building energy usage accounts for 30% of greenhouse gas emissions.***

## Solution: Energy Codes

**Lowers the production of greenhouse gases**
**Improves outdoor air quality from decreased combustion of fossil fuels**
**Decreases need for new power plants**
**Protects against next energy crisis**
**Non-attainment Strategy (Texas)**

## Example:

***Energy codes as Air Quality Non-attainment SIP - Texas!***

- EPA, Enviros, Builders, Energy and Housing Advocates coming together to develop regional, State Energy Codes in response to Non-Attainment issues
- Dallas/NTX COG, Houston, State standardization

**PROBLEM:**
**Pipe Freeze/Burst!**

***Losses resulting from frozen water pipes were estimated to be $450 million/year between 1985 and 1995.***

**Notes:**

Insulated water pipes minimize the chance of pipe freeze and subsequent water damage.  Water freezes when heat in the water is transferred to subfreezing air.  The best way to keep water from freezing is to slow or stop this transfer of heat.  Water pipes in southern climates are often more vulnerable to pipes bursting because pipes are more likely to be placed in unprotected areas.  In the U.S., losses resulting from frozen water pipes were estimated to be $450 million/year between 1985 and 1995.  

## Solution: Pipe Insulation

- Hydronic Piping Insulation

**Notes:**
Energy code requirements for insulating pipes in unconditioned spaces as well as allowing for un-vented insulated crawlspaces and air sealing, greatly reduces the chance of pipe freeze. 

## Problem – ICE DAMS!

**Problem – ICE DAMS!**

- In 1995, the damage incurred from one storm resulted in $20 to $30 million in losses.

**Notes:**
Ice dams form when melting snow runs down the slope of a roof toward the gutter or eve but re-freezes before it can fall to the ground. The melted snow re-freezes near the edge of the roof where the surface temperature is less than 32° Fahrenheit. The snow on the warmer roof surface continues to melt and flow down the slope, and becomes trapped by a dam of ice. The water slowly builds up behind the ice dam until it pushes beneath the roofing shingles and begins to drip into the warmer structure below.  In 1995, the damage incurred from one storm resulted in $20 to $30 million in losses.  

## Solution – Energy Code Requirements: 

- Insulation Levels
- Air Sealing
- Duct Sealing

**Notes:**
The energy efficient provisions of the energy code reduces ice damming common in cold climates and resulting water damage. The best way to avoid ice dams is through better building practices, such as those encouraged by strong building energy codes. The 2000 International Energy Conservation Code (IECC) mandates minimum standards, including proper insulation that helps prevents ice dams from forming and causing costly damage.  Unsealed and uninsulated ducts and pipes in unconditioned spaces can also lead to ice damming. This important requirement of the energy code is necessary to help to maintain the temperature in the attic space close to outside air temperature by keeping heat from entering unconditioned spaces. Recessed light fixture stipulations and air sealing required by the Energy Code improves air and water tightness of buildings. Building code ventilation requirements alone will not overcome the huge infiltration losses that cause ice dams. Proper attention to air sealing requirements of the energy code is necessary to help keep heat from entering unconditioned spaces.  Combined with proper ventilation, these practices can minimize ice damming.  Air sealing also reduces the risk of pipe freeze and structural problems from moisture migration into building elements. Proper attention to air sealing requirements of the energy code is necessary to help keep heat from entering unconditioned spaces.  Combined with proper ventilation, these practices can minimize ice damming.  Air sealing also reduces the risk of pipe freeze and structural problems from moisture migration into building elements. 

## What’s Missing?Training on details of:Infiltration Control, Duct Sealing!

## Myth: Insulation Stops Air Leaks

**Some insulation is no more effective at stopping air and cold drafts, than an umbrella is at stopping the wind**
**Insulation Installation KEY!**

## Infiltration Control

**Seal all joints, penetrations and other such openings in the building envelope**

**Notes:**
Hold up a WA State IC rated recessed can fixture

## Fire blocking

**Required in Floor, Wall and Roof Assemblies.**
**Must Cut off All Concealed Draft Openings:**
**Between Stories.**
**Between the Top Story and Roof Space.**
**At Intersections Between Vertical ****and Horizontal Spaces:**
**Soffits**
**Drop Ceiling**
**Opening Around Vents, Pipes, and ****Ducts at Ceiling and Floor Level**

**Notes:**
Can we do a less busy slide here?
Sharper, don’t to list points on right, drop words

## Infiltration Control

## Small Holes Too!

_**Seal Utility Penetrations!**_

**Notes:**
Do it on ALL envelope components AND interior partition walls

## Seal Around Windows!

- _Seal Around Windows!_

- Windows, Windows, Windows!

## Air Tight Recessed Fixture

## Too Much Moisture Leads To:

**Building Durability Issues**
**Mold and Mildew**
**Discomfort**
**Condensation on Windows **
**Increases Potential for Poor Indoor Air Quality**

## Why is Indoor Air Quality Important?

- In 1994, EPA ranks health risks of 26 leading environmental hazards. The top concern was indoor pollution.
- Indoor air quality has been demonstrated to be many times worse than outdoor air quality
- We spend 90% of our day indoors and 65% of that is in our homes
- Asthma rates have increased dramatically in the last 12 years. Adults up 61%. Children up 72%.

## Slide 37

**Notes:**
Although the possible long-term health effects of exposure to indoor mold are still being studied, the main characters of the Rex Morgan comic strip — like many American homeowners — are convinced that it represents a serious threat. 

## Health Effects of Humidity

## Duct Leaks

**Contribute to Air Leakage in House**
**Adds 30-300 % to ACH While the Blower is on**
**Reduce Comfort in Home**
**Increase Drafts**
**Reduce Air Delivery / Unbalanced Airflows**
**Contribute to Moisture Problems!**
**Contribute to Backdrafting **
**Leaky Return Depressurizes Lower Floors**
**Especially When Competing With a ****Smoldering Fireplace (600 Cfm)**

## Duct Systems Air Sealing

**Notes:**
Big change mastic sealing

## Duct Requirements

- (or lack thereof)

**Notes:**
No standard duct tape allowed
Rim joist rotted out after 2 years

Discuss what caused the problem – leaky ducts in a wet crawl space and throughout the system

Moist air distributed in rim joist area due to poor detailing

## Energy Codes - 

**Why the Insurance Industry needs to be more involved:**

**There’s Money in it!**
**Better Adopted and Implemented Energy Codes can lower Liabilities!**

## Energy Codes - 

**Energy Codes -**** **
**Why the Insurance Industry needs to be more involved:**

**There’s More Money in it! **
**Opportunities to market through Implementation assistance**
**Opportunities to create new products based on improved performance of buildings**

## Early Successes:

***Early Successes:***
***Cooperative work with IBHS Code Cmte.!***

- BCAP, IBHS Code Cmte meeting in January ‘02
- Coordinating and supporting cooperative code work
- Leading to realtionships with Insurance companies, ISO, AAI, etc.

## Early Successes:

***Code/Beyond Code Training in Texas!***

- BCAP, TAB, TX A&M, BPCI, collaborating on proposal for combined training in TX
- Camroden, BSC to develop Mold training, guidelines
- Videos for Builders, Subs
- Leverage DOE SEP $ with TX SECO?

## Early Successes:

***Early Successes:***
***ISO Considering Energy Code scoring in BCEGS!***

- BCAP, ISO, IBHS collaborating effort to incorporate Energy into grading scale
- Need evidence that this will be doable by states, code offices
- ICC Energy certification may be key

## Energy Codes -

**Why The Insurance Industry needs to be more involved:**

**They are part of the Industry’s job, and make it easier**
- Energy Code requirements can have major positive impact on many building-related failures and related liabilities!

## Energy Codes: 

**Energy Codes:**** **
**How can the Insurance Industry assist and benefit?**

**By getting more involved!**
- 1. Assist **BCAP and partners** in state Adoption
- 2. Assist states in Implementation, training, and outreach, i.e NE Regional Code Support Project
- 3.  Collect Claim Data differently to assess opportunities for intervention and strategies
- 4. Add grading component of BCEGS for Energy codes
- 5. NY/IL/ICECF  Pilot Project?
**Let’s start the dialogue Today!**

## Energy Codes: 

**How does the Energy Code world benefit?**

**Help with implementation!**
- Help with training, outreach
- Help in improving **builder/contractor buy-in!**
- Offer **new and potentially more effective** implementation mechanisms!!!
- Create products that incentivize Energy Codes and better building performance??

## Energy Codes: 

**Who better than the**
**Insurance Industry to help**
**deliver the message?**

**Most Important: The chance to impact ALL buildings!**
- Reduce homeowner claims
- Reduce Builder/Owner/Developer Claims!
- Some currently involved already through enhanced Marketing activities!

**Notes:**
In 1997, more than 200 top level insurance executives from 10 countries met in Tokyo to share strategies for the implementation of environmental commitments in the insurance sector.  

## Why Bother?

**Because buildings the construction infrastructure AND YOUR INDUSTRY work as a system**

- Can’t ignore the codes infrastructure as part of the system
- Tremendous opportunity to change it for the better
- Opportunity for all to impact all buildings!!
**MOST OF ALL – Increased opportunities to REDUCE LIABILITY!!!**

## Slide 52

## Mike DeWein

**Mike DeWein**
**Tech Dir. BCAP**
**Ph 518.664.1308**
**Fx 518.664.5672**
**dewein.bcap@**
**prodigy.net**

## Technical Support

**BCAP**
**	****518.664.1308**
**	****www.bcap-energy.org**
**US-DOE****1-800-270-CODE**
**	**_[www.energycodes.gov](http://www.energycodes.gov/)_
**IBHS**