The American Clean Energy and Security Act

NAR Legislative Analysis

The American Clean Energy and Security Act

National Association of REALTORS

500 New Jersey Avenue, NW, Washington, DC, 20001

® Government Affairs Division

Houses Passes Climate Bill with Energy Labeling Exemptions

The U.S. House of Representatives approved H.R. 2454, the American Clean Energy and Security Act by Reps. Waxman

(D‐CA) and Markey (D‐MA). The bill, re‐numbered H.R. 2998, includes NAR‐supported provisions, championed by Rep.

Perlmutter (D‐CO), that exempt existing homes and buildings from the bill’s provisions to build upon an existing Energy

Star energy labeling program.

After multiple consultations with the NAR Climate Presidential Advisory Group, the NAR Land Use, Property Rights and

Environment Committee, and state associations who had dealt with energy audit legislation at the state level, the Land

Use, Property Rights and Environment Committee directed NAR staff to concentrate on the real estate provisions in the

bill. As a result, NAR issued calls for action and made this a talking point for Capitol Hill visits during its recent Midyear

meeting.

Overall, Realtors succeeded in making a number of positive changes to the bill. Thanks to Realtors, the House‐approved

bill:

Does not create a federal energy audit requirement for real property;

information labels.

Exempts existing homes and building from any federal guidelines for new construction energy efficiency

Prohibits the implementation of any labeling during a sales transaction.

Leaves the decision to states as to whether to require energy audits, disclosures, etc.

improvements and reduce their energy bills;

Provides property owners with significant financial incentives, matching grants and tools to make property

Clean Air Act;

Prohibits the Environmental Protection Agency from regulating residential and commercial buildings under the

Eliminated an early proposal to allow citizens to sue over minor climate risks under the Clean Air Act; and

grants and credit for upgrades in mortgage underwriting.

While H.R. 2998 includes many positive changes, NAR will have additional opportunities to make further changes to

address unresolved issues, such as the bill’s building energy code targets. The Senate must still pass its version of an

energy and climate bill. There would be a House‐Senate conference committee to reconcile differences between the

House and Senate bills. The timing for a vote in the Senate is not clear as the Environment and Public Works Committee

still must develop the climate provisions to “cap and trade” carbon emissions. The Senate Energy and Natural Resources

Committee has approved energy provisions that are more realistic and preserve state flexibility to develop and enforce

building codes. While the bill as approved by the House represents a significant improvement over the bill that was

introduced, NAR will continue to work to address these issues as the legislative process continues.

An NAR summary of climate issues, which summarizes NAR policy, may be accessed on Realtor.org. Here is the link:

Establishes green building incentives for HUD housing, including a loan program for renewable energy, block

http://www.realtor.org/fedistrk.nsf/c2c6e17e27e92119852572f8005cd953/4c238a3be8220682852573d4006f1dfc?O

penDocument

Legislative Contact:

Austin Perez,

Helen Devlin,

aperez@realtors.org, 202‐383‐1046hdevelin@realtors.org, 202‐383‐7559

Regulatory Contact:

Russell Riggs,

rriggs@realtors.org, 202-383-1259

NAR Myths and Facts

The American Clean Energy and Security Act

National Association of REALTORS

500 New Jersey Avenue, NW, Washington, DC, 20001

® Government Affairs Division

Myths and Facts: Home energy labeling

On June 26, the House of Representative approved H.R. 2454, the American Clean Energy and Security Act. Since

then, there have been many reports about the bill and NAR’s position that are based on incomplete information.

Here are the facts:

Claim:

“The bill mandates energy audits and labeling before any home in America is sold.”

Fact:

have required energy audits and labeling at the time of sale. However, Realtors succeeded in making many positive

changes before the bill passed. Many published reports are not based on the version of the bill that was considered

by the House. As approved, the bill:

• Does not create energy audit requirement for real property at time of sale.

• Exempts existing homes, multifamily and commercial buildings from any federal energy labeling guidelines

such as the existing federal Energy Star label program (section 204(m)), and

• Leaves the decision entirely to state governments whether to pass a law to require labels, but expressly

prohibits labeling during a transaction (Section 204(h)).

The bill does not create a federal energy audit or labeling requirement. As introduced, the original bill would

Claim:

“The bill federalizes building codes.”

Fact:

would be given 1 year to bring their state codes into compliance with the new national standards. If a state fails to

do so, the federal government would set and enforce the state’s energy codes.

Throughout the bill’s development, NAR has worked as part of a broad real estate coalition to address concerns

with the House bill’s building‐code provisions. While we supported committee amendments to limit these

provisions, the amendment to strike the section was unfortunately voted down along party lines.

NAR will redouble its efforts in the Senate where the energy committee has reported bipartisan alternative to the

House’ that sets more realistic energy reduction targets while preserving state and local authority. If and when

the Senate takes up its bill and it reaches a House‐Senate conference to resolve the bill differences, we will

undertake the necessary efforts and activities to ensure onerous provisions are not imposed on real estate

markets.

The bill would create a national building code standard that improves upon building energy efficiency. States

Claim:

“NAR supports a “Cap and Tax” bill”

Fact:

they need to improve property and save money on their energy bills. As passed, the bill:

• Does not create a federal energy audit requirement for real property;

• Exempts existing homes and buildings from any federal guidelines for new construction energy labeling.

• Leaves the decision to state government whether to pass a law and label, but specifically prohibits any

labeling during a sales transaction.

• Prohibits the Environmental Protection Agency from regulating carbon emissions from residential and

commercial buildings under the Clean Air Act;

• No longer includes provisions to bolster a private right of action under the Clean Air Act that would have

allowed citizens to halt construction over minor risks – whether real or imagined;

• Offers property owners with matching grants and diagnostic tools to make property improvements that

saves energy; and

• Provides green building financial incentives for HUD housing, including a loans, block grants and credit in

underwriting for energy improvements.

NAR supported moving legislation to the Senate that provides home owners with the resources and tools

NAR Myths and Facts

The American Clean Energy and Security Act

National Association of REALTORS

500 New Jersey Avenue, NW, Washington, DC, 20001

® Government Affairs Division

At the direction of the NAR Board of Directors and Land Use, Property Rights and Environment Committee, NAR

concentrated on the real estate provisions in the bill. While there were many NAR‐supported changes to the House

bill, NAR will continue working to address the remaining issues as the bill winds its way through the legislative

process.

Claim:

“NAR should have read the bill.”

Fact:

development of the 308‐page amendment. The energy labeling exemption for existing real property was included

on page 45. The House bill is available to the public at the Library of Congress’website: http://thomas.loc.gov/.

The real estate provisions are in Title 2 beginning on page 320.

Legislative Contact:

Austin Perez,

Regulatory Contact:

Russell Riggs,

Legislative Contact:

Helen Devlin,

NAR reviewed the entire amendment and bill before taking a position. NAR was directly involved in theaperez@realtors.org, 202‐383‐1046rriggs@realtors.org, 202‐383‐1259hdevelin@realtors.org, 202‐383‐7559

This entry was posted on Wednesday, July 1st, 2009 at 2:26 pm and is filed under Uncategorized.

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