Energy Efficiency Cost-Effectiveness Tests for Residential Code Update Processes

In 2008, the Florida Legislature passed the Florida Energy Act of 2008. A portion of this Act (Section 109, HB 7153) directs the Florida Building Commission (FBC) to develop a rule for determining the cost effectiveness of energy conservation measures considered for inclusion in the Florida Energy Code, as follows:

“(3) The Florida Building Commission shall, prior to implementing the goals established in subsection (1), adopt by rule and implement a cost-effectiveness test for proposed increases in energy efficiency. The cost-effectiveness test shall measure cost-effectiveness and shall ensure that energy efficiency increases result in a positive net financial impact.”
The administrative rule directed by this legislation is to be completed and applied to the 2010 update of the energy provisions of the Florida Building Code.

In recent years, energy codes for new buildings have also been of specific interest to the G8 (“Group of Eight” world economic leaders). At their Gleneagles meeting in 2005, the G8 developed and began implementation through the International Energy Agency (IEA) of an energy action plan aimed at significantly improving the efficiency of buildings. The Gleneagles Energy Action Plan provides specific policy guidance with respect to the cost effectiveness of building energy codes, as follows:

“Energy efficiency standards for new buildings should be set by national or state governments and should aim to minimize total costs over a 30-year lifetime."

To assist in meeting their charter to develop a rule for a cost effectiveness test for the Florida Building Code, the Florida Department of Community Affairs (DCA) has contracted with the Florida Solar Energy Center (FSEC) to draft this report on economic indicators and to make recommendations on economic assessment standards that might be included in a cost effectiveness test rule.