Waxman-Markey Cap And Trade Will Make Homes Cut Energy Consumption 62 Percent
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Get ready for the roller coaster if the Cap and Trade Bill that was passed by the House of Representatives last week becomes law. Those who are living in older homes or homes that are not the most energy efficient are essentially screwed.
Over the next few days I will be outlining what is in the bill and scaring the crap out of you. Can you imagine how expensive it will be to retrofit your home to hit these mandates?
I did a quick excel spreadsheet and according to the numbers the Secretary of Energy will expect by 2029 that homes will use 62 percent less energy, or else they will be subject to Federal intervention. We will get into Federal intervention and inspectors on a later post.
(A) effective on the date of enactment of the American Clean Energy and Security Act of 2009, 30 percent reduction in energy use relative to a comparable building constructed in compliance with the baseline code;
(B) effective January 1, 2014, for residential buildings, and January 1, 2015, for commercial buildings, 50 percent reduction in energy use relative to the baseline code; and
(C) effective January 1, 2017, for residential buildings, and January 1, 2018, for commercial buildings, and every 3 years there after, respectively, through January 1, 2029, and January 1, 2030, 5 percent additional reduction in energy use relative to the baseline code. US Congress Bill 2454 page 200
And if this is not scary enough, look at the power it gives the Secretary of Energy:
(4) ADDITIONAL REDUCTIONS IN ENERGY USE.—Effective on January 1, 2033, and once every 3 years thereafter, the Secretary shall determine, after notice and opportunity for comment, whether further energy efficiency building code improvements for residential or commercial buildings, respectively, are life cycle cost-justified and technically feasible, and shall establish updated national building code energy efficiency targets that meet such criteria. US Congress Bill 2454 page 202
You will have given the Secretary of Energy the power to decide unilaterally what the energy use codes for the country will be. One person will have the power to decide what homes have to do to comply with his or her whims.
And you think we have problems now with real estate, just think of the fun times we will have if this bill gets enacted into the law of the land.
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Comment by Trish on 3 July 2009:
I can’t tell you how many people I’ve talked to in the past week who are completely unaware that the cap and “tax” bill is out there or what it means to them. Some of them even claim to have never heard the term “Cap and Trade” – It makes me very afraid. I am trying to start a dialogue with friends and acquaintances who are always shocked when I tell them what it is and what they will have to do to retro-fit their older homes. I’m hoping that they’ll talk to other people and so on and so on. Sadly some people seem to have an “oh well…what can we do?” attitude. That’s what’s really scary.
Comment by M Realty on 3 July 2009:
Pain is gain. I really support this, and the change may be hard but it has to be done. Retrofitting the older buildings is going to SAVE people money in the long run because they will not be dishing the money out monthly to the utility companies. Also, there will be a lot of help out there to get homes retrofitted. All this is doing is trying to make up for the fact that builders wanted to build cheap, not build efficient. The paradigm must change.
Comment by Corey K on 3 July 2009:
If you haven’t read this bill I could easily see how one could support it. I mean the bill title says it all.
For those that have read the bill (all 1300+ pages of it) realize this is a bill that will not only lower everyones standard of living, but also provide a huge tax bill for everyone.
What will you do when the power company shuts off your electricity because you are over the cap and your refrigerator is full of food?
Read this bill before you blindly support it.
Pingback by Proposed Cap & Trade Legislation Impacts Real Estate on 3 July 2009:
[...] Cap & trade will make homes cut energy consumption. [...]
Comment by Lisa on 6 July 2009:
Corey K, where is the bill located so that I can read it?
Comment by Tom Royce on 6 July 2009:
Lisa
Click on the link in the post and you can download the pdf.
Comment by scubachipmunk on 16 July 2009:
people–saving energy will save you money and help us maintain the standard of living we are used too through conserving our natural resources! quit with the scare tactics. this will help you and your community.
Comment by Laura Griffin on 25 July 2009:
The Freedome Project is trying to stop the Cap and Trade bill from being passed.
I am sorry Mr. George. You see some good in the bill, but all the rest of us see is the increase in prices on everything we use and buy. This will include the power we use to run our homes, the food we eat, the fuel we need to run our cars, the clothes we wear, and the list goes on.
I read there was to be an increse in gasoline by $.70 per gallon included with this bill.