Voluntary Home Energy Rating System Guidelines

SUMMARY: Today, the U.S. Department of Energy (``Department'' or

``DOE'') is proposing statutorily required voluntary guidelines for

home energy rating systems. The proposed voluntary guidelines are

designed to encourage uniformity among systems for rating the annual

energy efficiency of new and existing residential buildings. They

provide for a uniform rating method; procedures for certification of

the technical accuracy of the building energy analysis tools used to

determine energy efficiency ratings; training of personnel conducting

energy efficiency ratings; data collection and reporting; quality

control; and monitoring and evaluation. The voluntary guidelines are

intended for use by state and local governments, utilities, builders,

real estate agents, lenders, agencies in mortgage markets, and others,

to enable and encourage the assignment of energy efficiency ratings to

residential buildings and the development of criteria for attractive

financial instruments for energy efficient homes.

DATES: Written comments on the proposed rule (10 copies) must be

received by the Department by October 23, 1995.

A public hearing will be held on October 2, 1995.

Requests to speak at the public hearing must be received by the

Department by 4 pm on or before September 13, 1995. Ten copies of

statement to be given at the public hearing must be received by the

Department by 4 pm September 28, 1995.

ADDRESSES: All written comments (10 copies), requests to speak at the

public hearing, and requests for the supporting documentation are to be

submitted to: Voluntary Residential Energy Efficiency Rating

Guidelines, Docket Number EE-RM-95-202, Buildings Division, EE-432,

Office of Codes and Standards, U. S. Department of Energy, 1000

Independence Avenue, SW., Room 1J-018, Washington, DC. 20585

The public hearing will begin at 9:00 a.m., and will be held at the

following location: Washington, D.C.: U.S. Department of Energy,

Forrestal Building, 1000 Independence Avenue, SW., Room 1E-245 (1st

Floor, E Corridor), Washington, D.C. 20585.

Copies of the transcripts of the public hearing, individual oral

statements, and the written public comments received may be viewed and/

or obtained from the DOE, Freedom of Information Reading Room, Room 1E-

190, 1000 Independence Avenue S.W., Washington, D.C. 20585, (202) 586-

6020, 9:00 a.m.-4:00 p.m.

FOR FURTHER INFORMATION CONTACT: Robert Mackie, Buildings Division, EE-

432, U.S. Department of Energy, Room 1J-018, 1000 Independence Avenue,

SW., Washington, D.C. 20585, (202) 586-7892

Diana Dean, Office of General Counsel, GC-12, U.S. Department of

Energy, Room 6B-231, 1000 Independence Avenue, SW., Washington, D.C.

20585, (202) 586-7440

SUPPLEMENTARY INFORMATION:

I. Background

A. Statutory Authority

B. General Purpose

C. Guideline Development

D. Rating Method Development

1. Reference House

2. Star Rating Method

II. Description of the Proposed Rule

A. Summary of the Voluntary Guidelines

B. Section by Section Description of the Proposed Guidelines

1. Section 437.1: Purpose.

2. Section 437.2: Scope.

3. Section 437.3: General definitions and acronyms.

4. Section 437.4: Availability of ratings.

5. Section 437.100: Rating procedure.

6. Section 437.101: Rating point score and star rating.

7. Section 437.102: Rating reporting.

8. Section 437.103: Reference home configuration.

9. Section 437.104: Minimum rated features.

10. Section 437.105: Operating condition assumptions.

11. Section 437.106: Non-rated energy consuming devices.

12. Section 437.107: Projected ratings for to-be built homes.

13. Section 437.200: Energy analysis tool requirements.

14. Section 437.201: Site data collection manual.

15. Section 437.202: Training home energy raters.

16. Section 437.203: Quality control.

17. Section 437.204: Monitoring and evaluation.

18. Section 437.205: Guideline compliance.

19. Section 437.206: Accreditation.

III. Procedural Requirements

A. Environmental Review

B. Regulatory Planning and Review

C. Federalism

D. Regulatory Flexibility Act

E. Paperwork Reduction Act

IV. Public Comment Procedures

A. Participation in Rulemaking

B. Written Comment Procedures

C. Public Hearing

1. Procedure for Submitting Request to Speak

2. Conduct of Hearing

I. Background

A. Statutory Authority

Section 102 of the Energy Policy Act of 1992 (Pub L. 102-486),

amended Title II of the National Energy Conservation Policy Act (Act)

by adding sections 271-273 (42 U.S.C. 8236-8236b). Section 271 of the

Act directs the Department to issue, by rule, voluntary guidelines that

may be used by state and local governments, utilities, builders, real

estate agents, lenders, agencies in mortgage markets, and others, to

enable and encourage the assignment of energy efficiency ratings to

residential buildings. Section 271 requires the Department to consult

with the Secretary of Housing and Urban Development, the Secretary of

Veterans Affairs, representatives of existing home energy rating

programs, and other appropriate persons. In terms of specified content,

section 271 provides that the voluntary guidelines shall:

(1) encourage uniformity with regard to systems for rating the

annual energy efficiency of residential buildings;

(2) establish protocols and procedures for

(A) certification of the technical accuracy of building energy

analysis tools used to determine energy efficiency ratings;

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(B) training of personnel conducting energy efficiency ratings;

(C) data collection and reporting;

(D) quality control; and

(E) monitoring and evaluation;

(3) encourage consistency with, and support for, the uniform

plan for Federal energy efficient mortgages, including that

developed under section 946 of the Cranston-Gonzalez National

Affordable Housing Act (42 U.S.C. 12712 note) and pursuant to

sections 105 and 106 of the Energy Policy Act of 1992;

(4) provide that rating systems take into account local climate

conditions and construction practices, solar energy collected on-

site, and the benefits of peak load shifting construction practices,

and not discriminate among fuel types; and

(5) establish procedures to ensure that residential buildings

can receive an energy efficiency rating at the time of sale and that

such rating is communicated to potential buyers.

Section 105 of the Energy Policy Act of 1992 amends section 104 of

the Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C. 12704,

by defining an ``energy efficient mortgage'' as a mortgage that

provides financing incentives for the purchase of energy efficient

homes, or that provides financing incentives to make energy efficiency

improvements in existing homes by incorporating the cost of such

improvements in the mortgage.

The Department is developing the guidelines through notice and

comment rulemaking because section 271 specifically requires that they

be developed ``by rule.'' Nevertheless, compliance with the final

guidelines is strictly voluntary.

B. General Purpose

The principal purpose of a home energy rating system is to

calculate a descriptive rating of the energy performance of a

residential building. An accurate home energy rating system will give

the lending industry the confidence it needs to underwrite energy

efficient mortgages, offer financing mechanisms, and provide the real

estate and appraisal industries with a basis for valuing energy

efficiency in the home sale and resale markets. It is anticipated that

by providing an accurate technical basis for projecting energy savings

from installations of energy efficiency measures, the guidelines, when

finalized, will play a critical role in establishing a market-based

system to encourage homeowners to improve the energy efficiency of new,

reconstructed or existing housing.

Reliable and consistent energy analysis systems are prerequisites

for financing residential energy efficiency through the mortgage

process with energy efficient mortgages or energy efficient loans.

Variation in current local and statewide home energy rating programs

impedes the implementation of energy efficient mortgage programs

because the Federal mortgage agencies and lenders are uncertain as to

the reliability of the ratings.

As of 1993, a number of states had developed their own unique home

energy rating programs. The National Association of State Energy

Officials (NASEO) stated that 14 states have state-wide or city-wide,

scaled home energy rating programs for new and existing homes. Thirty-

three states had utility-run home energy rating certification programs

for new homes in at least some areas of the state. In some areas both

state and utility rating programs were in use.

Today's proposed rule responds to the need of mortgage lending

institutions for a reliable technical basis upon which to underwrite

energy efficient mortgages. Providing this solid footing for mortgage

underwriting will encourage lenders to issue a variety of energy-

related financial products which in turn will help stimulate the market

for energy efficient housing measures.

Along with access to attractive financing, homeowners could be

encouraged to make investments in energy efficiency if they are valued

in the real estate market. Currently, appraisals are based on

comparables that do not necessarily value energy efficiency measures. A

reliable home energy rating gives appraisers a sound basis for

recognizing energy efficient measures that have been installed.

Uniformity across different home energy rating systems could

benefit consumers and the housing industry by making energy ratings a

standard part of the real estate process. As ratings become widely

utilized, consistency among systems will promote proper market

valuation of improvements. Expanded use of home energy rating systems

could stimulate increased use of energy efficiency and renewable energy

technologies by making energy efficiency a quantitative, visible, and

recognized attribute as homes are designed, built, bought, and

remodeled.

C. Guideline Development

The Department's Office of Building Technologies contracted with

the Home Energy Rating Systems Council (HERS Council) in 1993 for the

development of a Technical Report to be used as a basis for the

guidelines proposed today. The Department acted in response to the

provisions set forth in the Act to develop voluntary guidelines in

consultation with the Secretary of Housing and Urban Development, the

Secretary of Veterans Affairs, representatives of existing home energy

rating programs, and other appropriate persons.''

The HERS Council is a not-for-profit, corporation with a nineteen-

member board representing various stakeholders in the matter of home

energy ratings. The HERS Council's membership includes builders,

mortgage lenders, HERS providers, consumer groups, State energy

offices, utilities, real estate agents and appraisers, and product

manufacturers.

The HERS Council formed a Technical Committee comprised of

representatives from electric and gas utilities and utility trade

associations, home energy rating providers, software developers,

builders, state organizations, product manufacturers, and the heating,

ventilation and air-conditioning industry. The Department also provided

resources from the National Renewable Energy Laboratory to give

technical support to the HERS Council during their work on the

Technical Report.

The Department, working through the HERS Council, attempted to

reach all possible stakeholders to obtain comments during the

development of these proposed guidelines. Representatives from the U.S.

Department of Housing and Urban Development (HUD) and the U.S.

Department of Veterans Affairs (VA) attended HERS Council and Technical

Committee meetings to remain apprised of the material being developed

and the Department has consulted with both HUD and VA on the contents

of these proposed guidelines.

Many of the larger and more active rating organizations

participated in this effort, but the Department is aware that there are

some home energy rating organizations not participating in the HERS

Council. Therefore, the Technical Report created by the HERS Council,

via a consensus process, may not reflect all opinions on the content of

these guidelines. The proposed guidelines allow for delayed compliance

as described below. The Department invites all interested parties to

provide the Department with their views regarding the proposed

guidelines in comments responding to this notice and at the public

hearing.

D. Rating Method Development

The proposed guidelines provide for a single method of rating homes

that is consistent with the statutory requirement in section 271 of the

Act to encourage uniformity with regard to systems for rating the

annual energy efficiency of residential buildings. The HERS Council and

the Technical

[[Page 37951]]

Committee considered several existing rating methods. Many of the

existing methods considered utilize a 100-point scale, and therefore, a

large portion of consumers and financial institutions should find this

type of scale an appropriate basis for ratings.

Many of the existing 100-point methods, however, lack consistency

in the specification of the extremes of the scale (0 and 100 points).

In some of the existing methods, the least efficient fuel and type of

heating system is used to define the least efficient end of the scale.

In other existing methods, the best available technology is used to

define the most efficient end of the scale. The exact parameters that

determine the ``least efficient'' and ``most efficient'' ends of the

scale are selected individually by each HERS provider which can result

in a lack of consistency among providers.

To promote consistency, the proposed scale utilizes a single fixed

reference point from which energy efficiency is measured. The reference

point is fixed at 80 points, and the proposed method assumes zero

purchased energy at the top end of the 100-point scale. The top of the

scale (100) represents a one hundred percent improvement over the

reference point. Therefore, each point above 80 represents a five

percent reduction in energy consumption from the reference point.

Conversely, at a five percent increase in consumption per point, zero

would represent purchased energy that is five (or more) times greater

than the purchased energy consumed at the reference point. By selecting

the energy efficiency of a hypothetical building (reference house) that

remains constant as the reference point, the rating scale becomes both

uniform and consistent over time. If no changes occur to the rated

features of a home, then the rating also remains consistent over time.

1. Reference House

The approach used to create the specifications for the reference

home was to base the proposed scale specifications on an already

recognized standard for ``energy efficiency.'' Two recognized standards

for energy efficiency that are national in scope are the Council of

American Building Officials (CABO), Model Energy Code (CABO-MEC) and

the American Society of Heating, Refrigerating, and Air Conditioning

Engineers (ASHRAE) Standard 90.2.

The HERS Council Technical Committee compared the specifications of

these two documents. Using computer programs that met the preliminary

requirements of the proposed tool certification process found in

proposed section 437.200, a comparison was made of calculated energy

consumption for two standard prototype homes located in seven cities in

the United States. The predicted energy consumption was similar for

either standard in most climates. In predominantly heating climates,

CABO was slightly more stringent, whereas ASHRAE tended to be slightly

more stringent in climates where cooling was the greater need. The

difference was not considered to be substantial.

The HERS Technical Committee recommended the use of CABO-MEC as the

basis for the reference home in the proposed rating method. CABO-MEC is

the qualifying threshold for the energy efficient mortgage program of

the Federal National Mortgage Association (Fannie Mae), and the Federal

Housing Administration. Further, Section 101 of the Energy Policy Act

of 1992 uses CABO-MEC as the benchmark for residential buildings in the

Department's Building Energy Efficiency Standards Program.

On the basis of the foregoing, the Department accepts the HERS

Technical Committee's recommendations to use CABO-MEC. (See proposed

section 437.102, ``Section Description of the Guidelines'',

``Configuration of the Reference Home.'')

As previously stated, several secondary mortgage programs,

including HUD insured mortgages, recognize CABO-MEC as providing a

level of energy efficiency that qualifies buyer for increases in their

debt to income ratio limits. These programs currently reference the

1992 edition of CABO-MEC. The Department selected the 1993 edition to

establish insulation levels for the reference home because it provides

for more realistic (higher) levels of efficiency in multi-family homes

than those provided in the 1992 edition. In addition, some elements to

define a reference home and a standard set of operating conditions are

not present in the 1992 or 1993 editions of CABO-MEC, so they are taken

from the 1994 Amendments. Details are provided in Section II.B.

``Sections Descriptions'' under proposed section 437.103,

``Configuration of the reference home'' and proposed section 437.105,

``Operating condition assumptions.''

2. Star Rating Method

Many of the existing HERS systems provide ``star'' ratings as a way

of summarily representing the point scores. Many of the providers

support the concept that a ``four star'' rating should denote

efficiency. The proposed guidelines include the use of a ``star''

system. Under this system, which uses a ``one star'' to ``five stars-

plus'' scale, the reference home located at 80 points is awarded four

stars.

The divisions of the ``star'' scale in the proposed rating method

were created by the HERS Technical Committee based on a study of

calculated energy consumption. The HERS Technical Committee used

incremental levels of efficiency to look at the range of performance

that might be found in the existing housing stock. (For example, a pre-

1940 home with no modifications consumes approximately four times the

energy used by a reference home.) The study also looked at logical

incremental increases in levels of thermal performance above the levels

found in the reference home. To attain those higher levels, the study

looked at improved insulation equipment efficiency and the use of

renewable energy sources such as passive and active solar. The ``star''

breakpoints presented in the proposed guidelines have their origins in

this analysis by the HERS Technical Committee. Copies of the results of

this study are available from the Department information contact listed

in the ``Addresses'' paragraph of this proposed rulemaking. The

Department has also placed a copy in its Freedom of Information Reading

Room.

Thus, the guidelines proposed today are based on the principle of a

reference house and logical incremental changes in energy consumption.

The expression of the results is captured in the ``star'' categories of

energy efficiency.

The Department invites comments regarding the potential acceptance

of these guidelines by existing home energy rating providers and

invites specific comments on the content of the guidelines. Commenters

should bear in mind that these guidelines would not in themselves set

any ``acceptable'' level of energy efficiency and that existing

programs could use any point or points on the proposed scale for

comparisons that encourage efficiency. Commenters are also encouraged

to provide specific examples if comparisons to existing programs are

offered.

II. Description of the Proposed Rule

A. Summary of the Proposed Voluntary Guidelines

The proposed voluntary guidelines would establish: (1) A uniform

national rating method, and protocols and procedures for certification

of the technical accuracy of building energy analysis tools used to

determine energy efficiency ratings; (2) training of

[[Page 37952]]

personnel conducting energy efficiency ratings; (3) data collection and

reporting; (4) quality control; (5) and monitoring and evaluation. They

take into account local climate conditions and construction practices,

solar energy collected on site, and the benefits of peak load shifting

construction practices. They are designed not to discriminate among

fuel types.

The Department proposes to incorporate by reference test

procedures, U values and Uo values, and on site inspection

procedures upon publication of this rule as final. These materials are

listed below:

The ``Home Energy Rating Systems Building Simulation Test (HERS-

BESTTEST)'', NREL/TP-472-7332, National Renewable Energy Laboratory.

The U values and Uo values, of paragraph 502.2 of the Model Energy

Code, 1993 Edition, Council of American Building Officials. ``On Site

Inspection Procedures'', Guidelines No. 10, Home Energy Rating Systems

Council.

Copies of these document may be reviewed at the Department of

Energy, Freedom of Information Reading Room at the address stated

above. Copies of these documents may also be obtained from the

organizations and addresses listed below:

``Home Energy Rating Systems Building Simulation Test,'' NREL/TP-

472-7332, National Renewable Energy Laboratory, 1617 Cole Boulevard,

Golden, CO 80401-3393.

``Model Energy Code,'' 1993 Edition, Council of American Building

Officials, 5203 Leesburg Pile, Falls Church, VA 22041.

``On Site Inspection Procedures,'' Guidelines No. 10, HERS Council,

1511 K Street, NW, Washington, DC 20005.

B. Section Descriptions

Subpart A--General Provisions

Proposed Section 437.1: Purpose

Proposed Sec. 437.1 defines the purpose of part 437 as the

establishment of voluntary guidelines to be used by Home Energy Rating

System Providers to provide a consistent and uniform approach to rating

homes for energy efficiency.

Proposed Section 437.2: Scope

Proposed Sec. 437.2 specifies the types of homes that may be rated

using the voluntary guidelines. Section 271 of the Act calls for the

development of guidelines for ``residential buildings'' but does not

define that term or otherwise dictate the types of homes to be covered

by the guidelines. Consistent with the decision to base the proposed

voluntary guidelines on CABO-MEC, the proposed scope is limited to

residential buildings covered by CABO-MEC.

Included are: (a) one and two family dwellings; and (b) all other

residential buildings, three stories or less in height. As required by

section 271, both existing and proposed homes are included in the

proposed scope of the voluntary guidelines.

Proposed Section 437.3: General Definitions and Acronyms

Proposed Sec. 437.3 provides a listing of all the general

definitions and acronyms used in section 437. ``Home'' is defined in

this section as a residence or dwelling unit in detached or attached

structures of three stories or less. The rating industry as it exists

today favors the term ``home energy rating'' and the Department elects

to follow that convention. ``HERS provider'' is defined as a person or

organization that develops, manages and operates a home energy rating

system or ``HERS''. The rating industry as it exists today tends to use

the term ``HERS provider'' to describe a person or organization that

provides HERS generated ratings.

Proposed Section 437.4 Availability of Ratings

To respond to the statutory requirement ``to ensure that

residential buildings can receive an energy efficiency rating at the

time of sale and that such rating is communicated to potential

buyers,'' proposed Sec. 437.4 recommends certain actions by people or

organizations that are typically involved with the sale of a home or

the creation of a mortgage.

The Department is of the view that informing home buyers of any

available financing incentives related to energy efficiency will

encourage consumers to take steps that will reduce energy use in this

country. Consistent with that view, proposed Sec. 437.4(b) provides for

encouraging multiple listing services to include available home energy

rating information. The Department understands that there is concern

among stakeholders that buyers may need additional time to investigate

available incentives and, if necessary, have a rating conducted. In

doing so, the process of home selling might be delayed. However the

Department believes that delays can be minimized by lenders with proper

administrative procedures.

The Department also recognizes further concern that some existing

homes may be viewed as less marketable as the result of a rating and

therefore some homeowners may oppose the concept of rating homes.

However the Department is not proposing that such a rating should be

prerequisite to listing a home sale.

Proposed Section 437.100: Rating Procedure

Proposed Sec. 437.100 sets forth a standard procedure to be used by

each provider who voluntarily follows the proposed guidelines. A site

visit would be required to collect data that is used in making a

comparison of estimated yearly energy consumption between the home

being rated and a standard reference home of the same size and shape.

Only the energy consumed for heating, cooling and water heating would

be used in this comparison. The reference home would be defined under

proposed Sec. 437.103.

Proposed Section 437.101: Rating Point Score and Star Rating

This proposed section describes the calculation procedure for

determining a point score and star rating. The procedure would use the

estimated energy consumption of the rated and reference houses to

determine a rating score between 0 and 100 points. A score of 0

indicates that the rated home consumes five times or more energy than

reference home and is considered profoundly inefficient; a score of 100

indicates that the rated home has zero annual purchased energy

consumption for heating, cooling and water heating.

In addition to a numerical score, the rating is expressed by a

``star'' value of between one and five stars (five divisions) with a

sixth division called ``Five Plus''. This section identifies the

relationship of the numerical score to its corresponding ``star''

value.

Proposed Section 437.102: Rating Report

Proposed Sec. 437.102 lists the minimum information that each

rating provides. Proposed paragraphs (a)(5) and (a)(6) of this section

would require each HERS provider to report the name of the agency

certifying the accuracy of the energy analysis tool and the margin of

error accepted by that agency. Section 271 of the Act requires that the

guidelines establish procedures for certifying the technical accuracy

of energy analysis tools, but gives no definition as to what

constitutes ``technical accuracy.'' As proposed in section 437.200,

these guidelines look to the accrediting agency to establish pass/fail

criteria for energy analysis tools. The Department believes that the

acceptable margin of error is an issue to be decided by the users of

these ratings, such as consumers and lenders.

[[Page 37953]]

Therefore, the purpose of these two proposed reporting requirements is

to provide information that allows users to decide for themselves if

the accuracy of the energy analysis tool, as defined by the accrediting

body, is acceptable. The Department expects and encourages comments

from the financial community on this issue.

Proposed paragraph (a)(7) of this section requires each HERS

provider to report the level of their accreditation as either ``basic

compliance'' or ``full accreditation''. Existing HERS providers may

have functioning systems that would comply, or could readily be made to

comply with the majority of these guidelines, but would require lengthy

periods of time to come into full compliance. In response to this

situation, the Department proposes two levels of performance, basic

compliance and full accreditation, with the opportunity for any

existing HERS provider to meet certain guidelines with their present

system for a period of up to two years, during which time they may

represent themselves as being in basic, but not full compliance with

the guidelines. The Department invites comments on the advisability of

such a structure.

Paragraph (a)(9) provides for the reporting of previous energy

consumption data if it is made available by the homeowner. Various

factors such as prior home improvements or unusual weather conditions

make it necessary for the rater to determine the usefulness of such

information and to determine if it should be included in the report.

To facilitate energy efficient mortgages and loans as provided in

section 271 of the Act, paragraph (b) of this proposed section provides

for the report to include the estimated energy cost savings available

with the rated home reconfigured with possible improvements to the

minimum rated features. Paragraph (b)(2) also provides for reporting of

``The Present Worth Value'' of the energy cost savings and the discount

rate used to calculate that value. The Department considers this

information necessary because it is used in the qualification process

for Federally backed energy efficient mortgage programs such as those

provided by the Department of Housing and Urban Development (HUD). The

Department is not proposing a specific discount rate.

Proposed Section 437.103: Reference House Configuration

Proposed Sec. 437.103 establishes the level of energy efficiency of

the reference home. The insulation levels are those that are required

by the Council of American Building Officials Model Energy Code, 1993

edition (CABO-MEC), therefore, specific reference is made in this

proposed section to have the enclosure elements configured to Paragraph

502.2 of CABO-MEC. This paragraph establishes the criteria for building

envelope components according to the severity of the normal winter

weather conditions for the geographic location of the home. The

Department considers this procedure to be appropriate for the

determination of insulation levels for the reference home.

To be responsive to the language in section 271 of the Act

regarding the need to take into account ``solar energy collected on-

site,'' this proposed section would create what the Department

considers a ``solar neutral `` reference home by fixing the following

components:

Fenestration Area--In proposed paragraph (a)(5)(i), the

fenestration area is fixed at 18 percent of the conditioned floor area.

The requirements for wall assemblies in CABO-MEC are based on the

average U-values of those assemblies and therefore the total U-value of

the wall assemblies including windows and doors is calculated, then

divided by the gross wall area to determine the average. Since the area

of glazing may vary depending on the thermal performance of the window

itself and/or the opaque wall area, it is considered necessary to fix

the amount of glazing to create consistency in the reference home. In

the case of multi-family homes, where 18 percent of the conditioned

floor area may exceed the actual exposed wall area, a formula is

provided in proposed section 437.103 to establish the reference home

fenestration on a ratio of exposed and common wall areas.

Orientation--Also in proposed paragraph (a)(6)(i), glazing in the

reference home would be distributed equally in each of four cardinal

directions--north, south, east and west. As a result, the reference

home is assumed to experience equally beneficial solar gains during

heating season and equally detrimental solar gains during cooling. The

rated home would reflect the benefits of favorable orientation and/or

the negative impact of poor orientation. This principle is also

utilized with regard to multi-family homes, which would assume

hypothetical glazing in walls even though the actual wall in the rated

home may be common with an adjoining unit and not have any windows.

Adjustment to Fenestration Area--Proposed paragraph (a)(7)

specifies the percentage of the fenestration area that be assumed as

frame or sash. This serves to further refine the actual glazed area for

purposes of solar contribution for heating or solar load for cooling.

The value of 27 percent is taken from the information in Chapter 27 of

the 1993 ASHRAE Handbook of Fundamentals which specifies a 27 percent

frame area for a 3 ft. by 4 ft. operable wood residential window. Frame

and sash adjustments to fenestration area in the rated home are based

on the actual windows in use or as proposed for retrofit or to be built

homes.

Shading Coefficient--Proposed paragraph (a)(8) fixes the shading

coefficient at 0.70 during the cooling season. This is consistent with

the provisions for a reference house in section 8.8.3.2 of ASHRAE

Standard 90.2, for energy efficient design of low rise residential

buildings. It is also consistent with the provisions found in the 1994

amendments to CABO-MEC. The 1994 amendments were used as a source of

information to define this feature of the reference home because the

1993 code lacks clarity on these necessary specifications. It should be

noted that CABO states the use of draperies without providing a

specific shading coefficient which still leaves some ambiguity that is

avoided by following the ASHRAE approach. This part of the proposed

guidelines also fixes the shading coefficient for the glazing area at

0.88 during heating. This value is as stated in Chapter 27 of the 1989

ASHRAE Handbook of Fundamentals for clear double \1/8\ inch glass.

Shading coefficients for glazing in the rated home are based on the

actual windows in use or as proposed, but also assuming the use of non-

white draperies on the same schedule as is specified for the reference

home.

In response to the language in section 271 of the Act that requires

that these proposed guidelines not discriminate among fuel types,

proposed paragraph (a)(10) provides that the reference home utilize the

same energy sources for the same purposes as in the rated home. In the

case of ratings that include proposed upgrades, this eliminates the

possibility of a better rating by fuel switching. Energy suppliers are

free to promote their particular fuel type by providing comparative

operating costs but should do so outside of the information provided in

the rating of the home as it exists.

In proposed paragraph (a)(12), the equipment efficiencies specified

for HVAC systems and domestic hot water equipment in the reference

home, are the minimum efficiencies initially established by the

National Appliance Energy Conservation Act of 1987 (NAECA)(Pub.L. 100-

12). In proposed paragraph (a)(11), the reference home is

[[Page 37954]]

also assumed to have the same type of HVAC system, e.g., forced air or

hot water, as the rated home, except that in the case of homes heated

electrically, the reference home is assumed to be heated with an air

source heat pump. The Department considers this to be consistent with

the use of the minimum equipment efficiency established by NAECA, but

acknowledges the fact that in some homes with an extremely efficient

envelope, the use of resistance heat might very well represent the best

value when life-cycle costing principals are applied. However, it is

considered a greater risk to allow the combined inefficiency of a poor

envelope using resistance heat to be mitigated if a heat pump system is

not specified in the reference home.

Proposed paragraph (a)(13) provides for standard adjustments to

HVAC systems for duct or piping losses when the rated home has all or

part of its distribution system outside of the conditioned space. The

adjustment factors are consistent with those found in the 1994

Amendments to CABO-MEC.

Proposed paragraph (a)(14) provides specifications for water heater

efficiency expressed as an energy factor (EF). The values specified are

those found in the NAECA requirements for domestic water heaters.

The seasonal average air leakage rate of 0.67 air changes per hour

(ACH) established for the reference house in proposed paragraph (a)(15)

is consistent with the 1994 amendments to CABO-MEC. Consideration was

given to reducing that value to 0.50 air changes per hour as was done

in the 1995 edition of CABO-MEC, but at 0.67 there can be a greater

incentive to test with diagnostic equipment such as a blower door. With

the reference home set at the lower level of 0.50, a tested home would

receive minimal credit (0.15 ACH) in the rating before reaching the

current ASHRAE minimum of 0.35 ACH assumed necessary for adequate

ventilation. With an 0.67 rate as the basis for the reference home, a

tested home has the opportunity to demonstrate a 0.32 ACH advantage in

the rating. The minimum standard default value in proposed section

437.104, unless diagnostic testing is conducted, is 0.67 so in no case

could a rated house claim any advantage over the reference home without

testing.

Proposed paragraph (a)(16) sets standard assumptions for the

building mass found in the reference building that would be considered

when evaluating the benefits of mass for heat storage during both

heating and cooling seasons. This approach allows designers of the

rated home to incorporate passive solar strategies into the design and

to receive full credit for mass provided for that purpose. The internal

and structural mass values used are those found in the 1994 Amendments

to CABO-MEC.

The reference home defined by proposed section 437.103 represents a

fixed rating point that will not change over time. Homes which have

been rated will never need to be re-rated unless modifications have

been made to the home which affect its energy efficiency.

The Department invites comments on the configuration of the

reference house but reminds comment writers that it is not the

intention of these guidelines to use the reference house to set any

specific level of efficiency. While the specifications happen to be

consistent with some current energy efficient mortgage programs, anyone

offering incentives for energy efficiency in financing or otherwise, is

free to select any point on the rating scale as their ``threshold of

energy efficiency'' or other basis for comparison. The objective in

defining and using the reference home is consistency and the fact that

it is fixed in time has no bearing on future definitions of ``energy

efficiency'' or future qualifications for energy efficient financing

programs.

Proposed Section 437.104: Minimum Rated Features

Proposed Sec. 437.104 provides in Table 5, a list of building

components and a corresponding list of features of those building

components that must be considered when calculating the energy

consumption for the rated home as required by Sec. 437.100. The

Department recognizes that there are numerous additional features or

devices that might affect energy consumption in buildings. Examples are

ceiling fans, whole house fans, moveable insulation, etc., most of

which are occupant controlled. The Department believes that those

listed in Table 5 represent all the major influences on energy

consumption and that it is not necessary to require that each HERS

provider be able to evaluate all options and to do so would place an

undue burden on many existing systems. Paragraph (h) of this section

states that any HERS provider may base a rating on additional features

if the energy analysis tool being used is capable of doing so.

Proposed paragraph (c) provides methods, listed in the preferred

order of use, to determine building envelope thermal characteristics.

Proposed paragraph (d) allows for the use of default values when

data for the minimum rated features is not available without expensive

and destructive disassembly of the home. The Department believes that

these default values are best determined by a person or persons

knowledgeable about typical construction practices used in any given

time frame for homes in any given area. For this reason, this section

places the responsibility for establishing or approving default values

on the accrediting body and reflects the expectation that the required

expertise is present in that body.

Paragraph (e) of this section deals specifically with air leakage.

It states that if diagnostic testing equipment is not used to determine

leakage, then based on observations of the general tightness of

construction, a value of 0.67 air changes per hour or greater is to be

used. This precludes the use of a lower, more efficient value in a

rated home than is used for the reference home unless testing is done.

It does not ensure that the energy consumption attributable to air

leakage is accurately reported in the rating but neither do the models

used to extrapolate annual average air leakage rates from a single

diagnostic test. An experienced and well trained rater may make

reasonable estimates of air leakage and doing so without the expense of

diagnostic equipment reduces the cost of completing a rating. The

Department invites comments on the sensitivity of the possible range of

error which can occur with either estimated air leakage or in the

models for diagnostic testing.

Proposed paragraph (f) of this section provides methods, listed in

a preferred order of use, for determining efficiencies of primary types

of mechanical equipment. Proposed paragraph (g) provides as the last in

order of preference, an age-based table of default values for typical

space conditioning and domestic water heating equipment. A non-aged

based table of default values is provided for less common types of

mechanical equipment.

These tables identified as Tables 6 and 7, were developed from the

following references:

Department of Energy Residential Conservation Services Training Manual

(1981)

California Home Energy Efficiency Rating System (CHEERS) equipment

default table

Air Conditioning & Refrigeration Institute (ARI) historic equipment

shipment data, weighted averages

Gas Appliance Manufacturers Association (GAMA) historic equipment

shipment data, weighted averages

[[Page 37955]]

Oil equipment shipment data compiled by R. Krajewksi (Brookhaven

National Laboratory), weighted averages

Proposed Section 437.105: Operating Condition Assumptions

These guidelines are to be used to rate homes and not the occupants

of the home. Therefore occupant dependent factors e.g., thermostat set

points, are to be disregarded when estimating the energy consumption of

the rated and reference homes. Instead, the standard operating

conditions provided in proposed Sec. 437.105 are to be assumed.

Proposed paragraph (a) of this section provides standard

temperature control setpoints of 68 deg.F for heating and 78 deg.F

for cooling which are consistent with those found in the 1994

Amendments to CABO-MEC. When programmable offsets are available in the

rated home, proposed paragraph (b) of this section specifies

assumptions for the periods of offset and the amount of offset (5

deg.F). These values are based on information obtained from an industry

survey conducted by Minneapolis Honeywell that reported typical use of

programmable thermostats. The Department considers these schedules and

offsets to be conservative and therefore suitable as an operating

conditioning assumption when the rated home is so equipped.

Proposed paragraph (c) sets standard values for internal gains from

lights, people and equipment to be used when calculating the space

conditioning loads and energy consumption. These values are consistent

with those found in the 1994 Amendments to CABO-MEC.

Proposed paragraph (d) provides a formula for the determination of

domestic hot water usage. This formula for daily usage, (30 gallons +

(10 gallons x number of bedrooms)), is consistent with the formulas

found in the 1994 Amendments to CABO-MEC and in ASHRAE Standard 90.2

that establish domestic hot water usage.

Proposed paragraph (e) would require the HERS provider to make a

determination as to what weather data is to be used when calculating

energy usage. The normal source of weather information is to be found

in the typical meteorological year (TMY) data published by the National

Climatic Center, Asheville, NC. The term ``climatologically most

representative'' is used regarding the choice of location of the TMY

data to be used. This is because the Department recognizes the

possibility that the closest TMY weather site geographically may not be

truly representative of the weather conditions found at the site of the

home being rated. This proposed paragraph also allows interpolation of

weather data if the interpolated weather information is consistent

among all HERS providers operating within a State and is approved by

the accrediting body.

Proposed paragraph (f) provides that operating adjustments to

equipment efficiencies are to be made to correct for climate and mis-

sizing of equipment. These correction factors may be obtained from

recognized sources. The most logical sources of this information are

the Air Conditioning and Refrigeration Institute (ARI) or ASHRAE. The

requirements of this proposed paragraph would be met if the adjustments

are either provided by or approved by the accrediting body and are

consistent among all HERS providers operating within a State.

Proposed paragraph (g) would require each HERS provider to use

local utility or energy rates when calculating costs for reporting as

required in proposed section 437.102. This paragraph also would provide

for consistency among HERS providers on the updating of the rate

information by requiring each HERS provider operating within a State to

update information on the same schedule which is established by the

accrediting body.

Proposed Section 437.106: Non-Rated Energy Consuming Devices

The energy consumed by appliances and lights is not included in

consumption used to determine the rating. Proposed Sec. 437.106 would

establish standard consumption values for energy consuming devices such

as appliances and lights since it is necessary to estimate the energy

usage of these non-rated devices to comply with proposed Sec. 437.102

(Rating Report). Proposed Sec. 437.102 would require that, in addition

to reporting the estimated energy use for heating, cooling and water

heating, each HERS provider reports the estimated energy use and cost

of all other energy used in the rated home.

The Department recognizes the fact that some appliances, especially

refrigerators, may have a wide variance in energy use. There are also

dramatic savings available with the use of alternative lighting

fixtures. The primary reason behind the decision to neutralize the

affect of appliances in the rating process is that the rating should

not be based on items that are not a permanent part of the structure.

Refrigerators and other appliances can be moved with the occupants or

can be replaced with models that are more or less efficient. In the

case of lighting, there are opportunities to include permanently wired

fixtures in the rating but it is necessary to know the operating

schedule of the lighting to properly identify savings. Therefore the

rating would be based on the occupants and not on the house. In

addition, the number of permanently wired fixtures in the typical home

is limited and, in most cases, represent only a small part of the total

energy use.

In proposed Sec. 437.100(d), each HERS provider is encouraged to

provide separate information on the cost of operating appliances.

The electric energy use values proposed in Table 8 of this section

are taken from documents published by the Electric Power Research

Institute (EPRI). Those documents include: EPRI Residential End-Use

Energy Consumption: A Survey of Conditional Demand Estimates 1989 and

EPRI Residential Energy Usage Comparison Project: An Overview 1990.

The gas energy use values proposed in this section are taken from

documents published by the Gas Research Institute (GRI). Those

documents are: GRI Baseline Projection Data Book, 1994 Edition; and GRI

Interim Technical Input to NAECA Rulemaking for Gas-Fired Ranges, 1993.

Proposed Section 437.107 Projected Ratings for To-Be-Built Homes

This section recognizes that homebuilders may wish to offer

standard models that may be built on sites that vary in orientation.

This would prevent a rater from meeting a provision of section 437.104

which lists window and skylight orientation as a minimum rated feature.

Therefore, a projected rating for to-be-built homes may be based on

plans by estimating the energy consumption for each of the four

cardinal orientations, (north, south, east and west), and basing the

projected rating on the orientation that results in the greatest energy

consumption.

Projected ratings for to-be-built homes must also use a default

value for air leakage of no less than 0.67 air changes per hour. The

rating may be revised upon completion of the home if diagnostic testing

results in a lower air leakage rate (and/or on the basis of actual

orientation). The Department recognizes that this may be unfair to

builders who consistently deliver homes with tighter construction

because the projected rating will not reflect the benefit of additional

investment in tightening of the home and may cause the rating to fall

short of a level required to obtain a particular incentive. The final

rulemaking could address this issue by allowing an exception to the

default value for demonstrated consistency of tightness by a builder

[[Page 37956]]

and the Department solicits comments on the appropriate basis on which

that exception might be made (number of homes with demonstrated

tightness, etc.).

Subpart C--How to Administer a Home Energy Rating System

Proposed Section 437.200: Energy Analysis Tool Requirements

Proposed Sec. 437.200 establishes the minimum capabilities that an

energy analysis tool must have in order to produce the information used

in determining a rating. These include the ability to consider the

effect of the following items when estimating energy use:

Building types. (Proposed Sec. 437.2);

Reference home configuration. (Proposed Sec. 437.103);

Minimum rated features. (Proposed Sec. 437.104);

Operating condition assumptions. (Proposed Sec. 437.105);

Non rated energy consuming devices. (Proposed Sec. 437.106).

Proposed paragraph (a)(5) is provided in response to section

271(b)(2) of the Act which requires that the voluntary guidelines

include protocols and procedures for certification of the technical

accuracy of building energy analysis tools used to determine energy

efficiency ratings.

The National Renewable Energy Laboratory (NREL) has developed a

Home Energy Rating System Building Energy Simulation Test (HERS

BESTEST) for this purpose. HERS-BESTEST is published as a technical

report identified as NREL/TP-472-7332, and is available from the

information contact identified at the beginning of this notice or from

the National Technical Information Service, U. S. Department of

Commerce, Springfield, Virginia 22161.

In developing HERS BESTEST, NREL used the results of three public

domain dynamic analysis programs with time steps of one hour or less to

establish reference energy consumption values as a basis for comparison

of the energy consumption calculations generated by HERS tools. The

programs used were DOE 2.1E, BLAST 3.0, and SERI-RES.

The NREL report establishes the procedures to administer HERS-

BESTEST. The NREL report also provides suggested pass/fail criteria for

certification of a rating tool based on the tools ability to correctly

calculate, within an allowable deviation, building energy loads for a

series of tests identified as Test Suite 1 of the HERS-BESTEST process.

A single story slab on grade house with typical glazing and

insulation is used as a base case with the HERS-BESTEST Tier 1 test

suite consisting of variations to the building in these elements:

Air leakage.

Wall and ceiling R-value.

Glazing area.

Glazing physical properties.

Glazing orientation.

South overhang.

Uninsulated slab.

Insulated slab.

Uninsulated basement.

Insulated basement.

Internal loads.

Crawl space.

Exterior surface color.

Combination of features using the least energy efficient

specifications for each.

In each of the variations listed above, the energy loads calculated

by the three public domain dynamic analysis programs differ by varying

amounts. The variation can be up to fifteen percent of the mean of all

three results. Thus a ``band width'' of results is created for each

test case.

Proposed Sec. 437.206 (Accreditation) provides that it is the

responsibility of a State or any other organization established as an

accrediting body, to establish the pass/fail criteria for certification

of the tool. The suggested pass/fail criteria provided in the NREL

report are based on the widest interval produced by either a deviation

of four million BTU outside, on either side of the ``band width''

created in HERS-BESTEST or an interval produced by the 90% confidence

interval for the population mean using a Students t distribution based

on the reference results of HERS-BESTEST.

Proposed paragraph (b) of this section provides for future energy

analysis tool requirements. The Department believes that the accuracy

of ratings will be improved with tools that utilize hourly simulations

to handle the variables provided for in this proposed paragraph.

Proposed paragraph (b) of this section sets a period of four years from

the date of final rulemaking for HERS providers to improve their tools

to meet the requirements of this part.

The Department invites comments on the need for the degree of

accuracy expected to result from the HERS-BESTEST procedure. Specific

questions are: Can accuracy be best determined using empirical data

that compares predictions to actual consumptions? Also, should HERS

providers be able to self-certify the accuracy of the energy analysis

tools?

Proposed Section 437.201: Site Data Collection Manual

Proposed Sec. 437.100 states that data is to be collected at the

site of the rated home. Proposed Sec. 437.201 would require each HERS

provider to supply each data collector with a manual containing

approved data collection procedures. Proposed paragraph (a) of this

section provides, as a reference source for such procedures, Guideline

No. 10 of the Home Energy Rating Systems Council HERS Guidelines. The

Department has placed a copy of this guideline in the public file for

this notice.

The Department believes that a manual of this type can be most

useful if it is directed to local building practice and history.

Therefore, proposed paragraph (a) states that a HERS provider may use

procedures established by the accrediting body or may create its own

material as long as the procedures used are approved by the accrediting

body.

Proposed Section 437.202: Training Home Energy Raters

Proposed Sec. 437.202 would require each HERS provider to provide

training to any employee who will be involved in the rating process.

This section provides for the development of a syllabus to be used in

this training.

Proposed paragraph (a) of this section identifies the subject

matter for a classroom training segment of the training. Proposed

paragraph (b) would require a written examination. Paragraph (c) would

require field training. Paragraph (d) specifies a probationary period.

Proposed paragraph (e) provides for the use of a challenge test of

competency for rater personnel with prior experience. The challenge

test, if passed, would allow the HERS provider to waive the classroom

training required by paragraph (a) of this proposed section.

The classroom training agenda in proposed paragraph (a) was

developed from information provided to the Department by the HERS

Council Technical Committee and is based on recommendations made by

personnel representing the following organizations: California Home

Energy Efficiency Rating System (CHEERS), Energy Rated Homes of America

(ERHA), Oregon Department of Energy, Policy & Planning Division,

Western Massachusetts Electric Co. Energy Crafted Home Program.

The Department considers these organizations to be among the most

experienced HERS providers operating

[[Page 37957]]

today. The Department also believes that the proposed training

requirements are based on sound principles.

Proposed Section 437.203: Quality Control

Proposed paragraph (a) requires each HERS provider to establish a

Quality Assurance Plan and specifies the minimum elements of that plan.

The first element listed as paragraph (a)(1) is the use of a peer

review where other raters would be asked to critique the work of each

rater as part of a continuing re-evaluation program. Proposed paragraph

(b) would require HERS providers to establish a Quality Assurance File

and specifies the minimum contents of that file. This paragraph further

provides for a minimum updating cycle of two years for the information

in this file, or sooner if changes are made to the HERS providers

system.

Proposed paragraph (c) would require HERS providers to maintain an

electronic database of specific information on each home rated and

specifies the minimum content of that database. The main purpose of

maintaining this data is to support the monitoring and evaluation

activities provided in proposed section 437.204. It may also be

possible in the future to link these databases with National or State

databases that track default data on mortgages or loans. Only selected

parts of the database such as the unique ID number would be needed for

that purpose.

The specification of individual elements listed in proposed

paragraphs (a), (b) and (c) is based on recommendations from the same

organizations referenced in the discussion above on the development of

proposed Sec. 437.202 and the Department considers the requirements to

represent the minimum effort expected for quality control. Specific

recommendations or comments are invited on this subject.

Proposed Section 437.204: Monitoring and Evaluation

Proposed Sec. 437.204 requires each HERS provider to semi-annually

evaluate the accuracy of ratings being performed by a periodic

comparison of predicted and actual energy use.

The Department believes that HERS providers should maintain certain

information that would facilitate both their own monitoring and

evaluation program and that of an accrediting body or other third-party

reviewer. Proposed section 437.204 specifies that, in addition to the

data specified in proposed Sec. 437.203, each HERS provider shall

maintain a database consisting of authorizations for the release of

consumption information by utility companies. Optimally, the HERS

provider could maintain actual consumption data for each rated home,

but even if the information were readily available that would place a

significant administrative burden on the provider. The Department also

recognizes the fact that in many cases these authorizations may be

difficult or impossible to obtain, but believes the need exists to make

a reasonable effort to do so. This data must be retained for a minimum

of 10 percent of the ratings performed or 500 homes, whichever is less,

in order to allow the accrediting body or other monitoring entity to

make random selections of ratings to review.

Proposed Section 437.205: Guideline Compliance

Proposed Sec. 437.205 sets forth two levels of compliance for HERS

providers and also sets future requirements for energy analysis tool

capabilities. The Department considers this to be a phased-in approach

to allow any existing HERS provider to represent themselves as

operating in basic compliance with the requirements of this part while

in the process of revising certain elements of their existing system to

become fully accredited.

Proposed paragraph (a) of this section provides a list of what must

be demonstrated to be deemed fully accredited. Proposed paragraph

(a)(4) sets forth requirements for the energy analysis tool to pass

both Tier 1 and Tier 2 sets of tests of HERS-BESTEST. The Tier 2 set of

tests test for the ability to evaluate the following features related

to high mass passive solar design:

Variations in mass;

Glazing orientation;

Glazing area;

South overhang;

East and west shading.

Proposed paragraph (b) of this section provides for ``basic

compliance'' by providing exceptions (with a maximum two year duration)

to the full requirements provided in proposed paragraph (a) of this

section.

The exception permitted in paragraph (b)(1)is the acceptance of

simplified utility rate structures. Since the rating is based on

consumption, the rating accuracy is not compromised and only minor

inaccuracies are anticipated in operating cost estimates.

Paragraph (b)(2) allows an exception to the minimum rated features

but it is unlikely that any key features would be excluded because the

HERS provider would not pass the HERS-BESTEST procedure. The exception

is most likely to be used because of the inability of existing systems

to evaluate active solar water heating or passive solar systems.

The exception to the use of standard operating conditions allowed

by paragraph (b)(3) is also considered to have minimal impact because

of the need to pass HER-BESTEST. If a HERS provider does not use the

exact prescribed standard operating conditions the results could be

slightly less accurate but they must still be within HERS-BESTEST

parameters.

Paragraph (b)(4) allows a HERS provider to be in basic compliance

by passing only the Tier 1 set of HERS-BESTEST tests. The additional

requirements found in the Tier 2 tests are all related to a high mass

passive solar building and are not considered critical for basic

compliance.

The exception to specific training requirements allowed under

paragraph (b)(5)is provided to recognize the fact that many successful

HERS providers may not have training programs that exactly match the

syllabus set forth in these proposed guidelines, and therefore are

given an opportunity to demonstrate that suitable training has been

provided.

The Department believes that the exceptions listed will not

significantly compromise the accuracy or the utility of ratings and

provide for a reasonable period of time to become fully accredited.

Proposed Section 437.206: Accreditation

Proposed Sec. 437.206 states a requirement that each HERS provider

operating in voluntary compliance with these guidelines shall be

accredited by an accrediting body such as a State or an independent

entity meeting the criteria set forth in this section.

In it's consultation with various stakeholders in the development

of these proposed guidelines, the Department has received conflicting

commentary on the need for a system of accrediting HERS providers and

certifying the energy analysis tools used by these providers. The

leading proponent of accreditation is the HERS Council, supported by

its financial community members. Opposition is primarily found in

existing operating HERS systems where an accreditation process and/or

changes to meet the proposed guidelines could be disruptive to their

present systems. Many of the proposed guidelines state that when

certain information needed for the rating process is not readily

available without destructive disassembly of the home or without costly

diagnostic procedures, then standard default values may be used. Such

default values are best developed by local entities

[[Page 37958]]

based on local experience or historic data for building practice. The

accreditation process would assure that the default values used were

consistent among HERS providers operating within a defined area such as

a State.

As the proposed guidelines are themselves voluntary, a voluntary

system, probably a combination of states and national entities, could

be developed for home energy rating providers seeking accreditation and

tool certification.

The Department requests comments on the processes of accreditation

and tool certification, and the establishment of appropriate entities

for these purposes. Specific questions are:

Should a national entity be created for accreditation of HERS?

Should States accredit HERS and if so, who would accredit HERS in

states where the State is unwilling or unable to do so?

Should guidelines be developed for the accreditation process itself

and if so, who should develop them?

Is self-accreditation a viable approach and what process should be

implemented to do so?

III. Procedural Requirements

A. Environmental Review

The proposed quidelines were reviewed under the National

Environmental Policy Act (42 U.S.C. 4321 et seq.), the Council on

Environmental Quality regulations implementing the provisions of the

National Environmental Policy Act (40 CFR parts 1500-1508), and the

Department's regulations for compliance with the National Environmental

Policy Act (10 CFR part 1021).

DOE concludes that, under Category A11 (Technical advice and

assistance) of Appendix A to Subpart D, ``Categorical Exclusions

Applicable to General Agency Actions'', of 10 CFR part 1021, the

voluntary guidelines are categorically excluded from further

environmental documentation.

B. Regulatory Planning and Review

The proposed guidelines do not constitutes a ``significant

regulatory action'' as defined in section 3(f) of Executive Order

12866, ``Regulatory Planning and Review'' (58 FR 51735), and has not

been reviewed by the Office of Information and Regulatory Affairs of

the Office of Management and Budget.

C. Federalism

The proposed guidelines have been reviewed in accordance with

Executive Order 12612, ``Federalism'' (52 FR 41685), which directs

agencies to consider the impact of Federal actions on States, on the

relationship between the Federal Government and the States, and on the

distribution of power and responsibilities among the various levels of

government.

The guidelines proposed by DOE are strictly voluntary. No

requirements or inducements have been placed upon the States to adopt

the guidelines. Consequently, the guidelines do not contain sufficient

federalism implications to warrant the preparation of a federalism

assessment.

D. Regulatory Flexibility Act

The proposed guidelines were analyzed under the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., which directs agencies to

prepare a regulatory flexibility analysis for each proposed rule or

certify that the rule will not have a ``significant economic impact on

a substantial number of small entities.''

The proposed guidelines are expected to have a minimal effect on

small entities. The guidelines described are voluntary and no

requirements or burdens have been imposed on any entity. As permitted

by section 605 of the Regulatory Flexibility Act, DOE certifies that

the proposed guidelines will not have a significant economic impact on

a substantial number of small entities. Consequently, no regulatory

flexibility analysis will be produced.

E. Paperwork Reduction Act

These proposed guidelines were examined with respect to the

Paperwork Reduction Act, 44 U.S.C. 3501 et seq., which directs agencies

to minimize Federal information collection and reporting burdens

imposed on individuals, small businesses, and State and local

governments.

These proposed guidelines establish voluntary guidelines for

residential energy efficiency ratings and do not impose requirements

for the collection or reporting of information to the Federal

Government. Accordingly, clearance under the Paperwork Reduction Act of

1980 is not required by the Office of Information and Regulatory

Affairs of the Office of Management and Budget.

IV. Public Comment Procedures

A. Public Participation

The Department encourages the maximum level of public participation

in developing these guidelines. Individuals, Federal agencies,

architects, engineers, utilities, States and local governments,

building code organizations, builders, builder associations, building

owners, building owner associations, consumers, mortgage lenders, and

others are urged to submit written statements on the proposal. The

Department also encourages interested persons to participate in the

public hearing to be held in Washington, D.C., at the time and place

indicated at the beginning of this Notice.

The Department has established a comment period of 90 days

following publication of this notice, for interested persons to comment

on this proposal. All comments will be available for review in the

Department's Freedom of Information Reading Room.

B. Written Comment Procedures

Interested persons are invited to participate in this proceeding by

submitting written data, views or arguments with respect to the

subjects set forth in this notice. Instructions for submitting written

comments are set forth in the beginning of this notice and below.

Comments (with 7 copies) should be labeled both on the envelope and

on the documents, ``Residential Energy Efficiency Rating Guidelines''

(Docket No. EE-RM-95-202)'' and must be received by the date indicated

in the beginning of this notice, in order to insure full consideration.

Additionally, the Department would appreciate an electronic copy of the

comments to the extent possible. The Department is currently using the

WordPerfect 5.1 word processing program. All comments received by the

date specified at the beginning of this notice and other relevant

information will be considered by the Department before final action is

taken on the proposed regulation.

All written comments received on the proposed voluntary guidelines

will be available for public inspection at the Department's Freedom of

Information Reading Room as provided at the beginning of this notice.

Pursuant to the provisions of 10 CFR 1004.11, any person submitting

information or data which the submitting person believes to be

confidential and exempt by law from public disclosure, should submit

one complete copy of the document, and 7 copies, if possible, from

which the information believed to be confidential has been deleted. The

submitter is to include a statement specifying why the information is

privileged or confidential. The Department will make its own

determination with regard to the confidential status of the information

or data and treat it according to its determination.

[[Page 37959]]

C. Public Hearing

1. Procedure for Submitting Requests To Speak

In order to have the benefit of a broad range of public viewpoints

in, developing these guidelines the Department will hold a public

hearing. Listed earlier in this notice is the date and address for the

hearing. Any person who has an interest in these proceedings, or who is

a representative of any group or class of persons having an interest,

may make a request for an opportunity to make an oral presentation at

the public hearing. Such requests should be labeled both on the letter

and the envelope, ``Residential Energy Efficiency Rating Guidelines''

(Docket No. EE-RM-95-202)'' and should be sent to the address and must

be received by the time specified at the beginning of this notice.

The person making the request should briefly describe the interest

concerned and, if appropriate, state why he or she is a proper

representative of the group or class of persons that has such an

interest, and give a telephone number where he or she may be contacted.

Each person selected to be heard will be so notified by the Department

as to the approximate time they will be speaking.

Each person to be heard is requested to bring to the hearing seven

copies of their statement. In the event any person wishing to testify

cannot meet this requirement, alternative arrangements can be made with

the Office of Hearings and Dockets in advance by so indicating in a

letter requesting to make an oral presentation.

A list of the persons to be heard at the hearing will be available

upon request from the Office of Hearings and Dockets. The list will

also be available for inspection in the Department's Freedom of

Information Reading Room.

2. Conduct of Hearing

The Department reserves the right to select the persons to be heard

at the public hearing, to schedule the representative presentations,

and to establish the procedures governing the conduct of the hearing.

The length of each presentation is limited to 20 minutes.

A Department official will be designated to preside at the hearing.

The hearing will not be judicial or evidentiary-type hearing, but will

be conducted in accordance with 5 U.S.C. 553 and Section 501 of the

Department of Energy Organization Act, 42 U.S.C. 7191. At the

conclusion of all initial oral statements, each person who has made an

oral statement will be given the opportunity to make a rebuttal

statement, subject to time limitations. The rebuttal statements will be

given in the order in which the initial statements were made. The

official conducting the hearing will accept additional comments or

questions from those attending, as time permits. Any interested person

may submit to the presiding official written questions to be asked of

any person making a statement at the hearing. The presiding official

will determine whether the question is relevant or whether time

limitations permit it to be presented for a response.

Further questioning of speakers may be permitted by the Department.

The presiding official will afford any interested person an opportunity

to question the interested persons who made oral presentations, and

employees of the United States who have made written or oral

presentation with respect to disputed issues of material fact relating

to the proposed rule. This opportunity will be afforded after any

rebuttal statements, to the extent that the presiding official

determines that such questioning is likely to result in a more timely

and effective resolution of such issues. If the time provided is

insufficient, the Department will consider affording an additional

opportunity for questioning at a mutually convenient time. Persons

interested in making use of this opportunity must submit their request

to the presiding official no later than shortly after the completion of

any rebuttal statements and be prepared to state specific

justifications, including why the issue is one of disputed fact and how

the proposed questions would expedite their resolution.

Any further procedural rules regarding proper conduct of the

hearing will be announced by the presiding official.

Transcripts of the hearing will be made, and the entire record of

this rulemaking, including the transcripts, will be retained by the

Department and made available for inspection at the Department's

Freedom of Information Reading Room as provided at the beginning of

this notice. Any person may also purchase a copy of the transcript from

the transcribing reporter.

The Department may cancel the public hearing if the Department does

not receive sufficient interest concerning the hearing. The Department

will include for the record a copy of the statement of any person who

requested to speak at a hearing that was canceled by the Department.

List of Subjects in 10 CFR Part 437

Buildings, Energy conservation, Housing standards, Mortgages.

Issued in Washington, DC, on July 11, 1995.

Christine A. Ervin,

Assistant Secretary, Energy Efficiency and Renewable Energy.

For the reasons set forth in the preamble, it is proposed to amend

10 CFR Chapter II by adding part 437 to read as follows:

PART 437--VOLUNTARY HOME ENERGY RATING SYSTEM GUIDELINES

Subpart A--General Provisions

Sec.

437.1 Purpose.

437.2 Scope.

437.3 General definitions and acronyms.

437.4 Availability of ratings.

Subpart B--How To Rate a Home

Sec.

437.100 Rating procedure.

437.101 Rating point score and star rating.

437.102 Rating report.

437.103 Reference home configuration.

437.104 Minimum rated features.

437.105 Operating condition assumptions.

437.106 Non-rated energy consuming devices.

437.107 Projected ratings for to-be-built homes.

Subpart C--How To Administer a Home Energy Rating System

Sec.

437.200 Energy analysis tool requirements.

437.201 Site data collection manual.

437.202 Training home energy raters.

437.203 Quality control.

437.204 Monitoring and evaluation.

437.205 Guideline compliance.

437.206 Accreditation.

Authority: 42 U.S.C. 8236-8236b

Subpart A--General Provisions

Sec. 437.1 Purpose.

The provisions of this part establish voluntary guidelines which

any provider of home energy ratings may follow to produce uniform

energy efficiency ratings for residential buildings. The energy

efficiency ratings produced under this part may be used to enable and

encourage the use of home mortgages or home improvement loans that

include incentives for energy efficiency in homes.

Sec. 437.2 Scope.

These guidelines apply to existing or proposed site-constructed or

manufactured residential buildings that are either one and two family

dwellings, or other residential dwellings three stories or less in

height excepting hotels and motels.

Sec. 437.3 General definitions and acronyms.

As used in this part--

[[Page 37960]]

Accrediting body means a State, local government, or other

independent agency that meets the criteria provided in Sec. 437.206 of

these guidelines for the accreditation of HERS providers.

AGA means American Gas Association

Annual Fuel Utilization Efficiency or AFUE means the ratio of

annual output energy to annual input energy that includes any non-

heating season pilot input loss.

Conditioned space, directly means an enclosed space having heating

equipment with a capacity of 10 BTU/(hr-ft\2\), or cooling equipment

with a capacity exceeding 10 BTU/(hr-ft\2\). An exception is if the

heating and cooling equipment is designed and thermostatically

controlled to maintain a process environment temperature less than

65 deg. Fahrenheit or greater than 85 deg. Fahrenheit for the whole

space the equipment serves.

Conditioned space, indirectly means enclosed space that is not

directly conditioned space:

(1) With area weighted heat transfer coefficient (U-value) to

directly conditioned space exceeding that to the outdoors or to

unconditioned spaces; or

(2) Through which air from directly conditioned spaces is

transferred at a rate exceeding three air changes per hour.

COP means Coefficient of Performance, which is the ratio of the

rate of heat delivered to the rate of energy input, in consistent

units, for a complete heat pump system under designated operating

conditions.

Data analyst means a person trained to enter the information

compiled by a data collector into the rating tool and to produce the

energy efficiency rating of a home.

Data collector means a person trained to evaluate the minimum rated

features of a home on site and collect all the information required to

create a rating.

Detached one- and two-family dwelling means a building with one or

two independent dwelling units with an individual or central HVAC

system.

Energy analysis tool means a calculation procedure for determining

a home's energy efficiency rating and estimating annual purchased

energy consumption and cost.

EER means Energy Efficiency Ratio, which is the ratio of net

equipment cooling capacity in Btu/h to total rate of electric input in

watts under designated operating conditions.

Energy efficiency rating or rating means an unbiased indication of

a home's relative energy efficiency based on consistent inspection

procedures, operating assumptions, climate data and calculation

methods.

Energy factor means a measure of water heater energy efficiency as

determined under Department of Energy Regulations. 10 CFR

430.23(e)(2)(ii).

Estimated annual energy cost savings means positive dollar

difference between estimated annual energy costs for a home with energy

saving measures and estimated annual energy costs of the same home in

its current condition.

Fenestration means a glazed opening in a building.

Full rater means the person trained to perform the functions of

both a data collector and a data analyst.

HERS-BESTEST means the Home Energy Ratings System Building

Simulation Test published in NREL Report No. NREL/TP-472-7332.

HERS provider means a person or organization that develops, manages

and operates a home energy rating system.

Home means a one or two family dwelling, or multi-family dwelling

of three stories or less.

Home energy rater or rater means the person trained to inspect a

home to evaluate the minimum rated features and prepare an energy

efficiency rating. (see also Data collector, Data analyst, Full rater)

Home Energy Rating System or HERS means the materials and

procedures needed to operate a home energy rating program including but

not limited to: marketing materials, training, publications, rating

tool, quality control, data base collection and maintenance,

agreements, data collection sheets, home owner reports, and other

related materials and services.

HSPF means Heating Seasonal Performance Factor which is the total

heating output of a heat pump during its normal annual usage period for

heating, in Btu, divided by the total electric energy input during the

same period, in watt-hours.

HVAC means Heating, Ventilating and Air Conditioning.

Internal gains means the heat gains within a home attributable to

lights, people, and miscellaneous equipment including domestic hot

water equipment losses.

NREL means National Renewable Energy Laboratory.

Purchased energy means the portion of the total energy requirement

of a home that is purchased from a utility or other energy supplier.

Reference home means a hypothetical home configured to the

specifications set forth in section 437.103 of these guidelines.

R-value means thermal resistance value.

SEER means seasonal energy efficiency ratio, which is the total

cooling output of an air conditioner during its normal annual usage

period for cooling, in Btu/h, divided by the total electric energy

input during the same period, in watt-hours.

Thermal storage mass means materials or equipment incorporated into

a home that will store heat, produced by renewable or non renewable

energy, for release at a later time.

Trombe wall means a heavy mass wall, usually of masonry materials

or containing water, constructed adjacent to a glazed area, for the

purpose of collecting and storing solar energy.

Typical Meteorological Year or TMY Data means hourly data published

by the National Climatic Center, Asheville, NC. based on historical

weather data for 216 locations.

U-value means thermal transmittance value.

Sec. 437.4 Availability of ratings.

The purposes of this rating system are to permit:

(a) Each builder, real estate agent, lender, or organization in the

mortgage business--

(1) When rating information is available, to communicate that

information in writing to home buyers prior to sale; and

(2) To advise each applicant for financing of a home of incentives

relating to qualification criteria, rate structure, or otherwise,

available based on the energy efficiency of the home as measured by

ratings conducted under these guidelines,

(b) Each multi-listing service (MLS) to include available home

energy rating information on any applicable listing.

Subpart B--How To Rate a Home

Sec. 437.100 Rating procedure.

(a) To determine the energy efficiency rating of a home, each HERS

provider shall--

(1) If the rating is being conducted for an existing home, visit

the site of the home being rated to collect the data needed to conduct

the rating;

(2) If the rating is being conducted for a to be built home, follow

the procedures set forth in Sec. 437.107 of these guidelines to collect

the data needed to conduct the rating;

(3) Use the collected data to estimate the annual purchased energy

consumption for heating, cooling and water heating for both the rated

home and the reference home defined in Sec. 437.103.

(4) If the energy efficiency rating is conducted to evaluate

proposed energy

[[Page 37961]]

conserving improvements to the home, conduct additional estimates of

annual purchased energy consumption with the home reconfigured to

include those improvements sufficient to consider interactions among

improvement options.

(b) Estimates completed by each HERS provider under paragraphs

(a)(3) and (4) of this section must be--

(1) Based on the minimum rated features set forth in Sec. 437.104

of these guidelines;

(2) Conducted using the standard operating assumptions established

in Sec. 437.105;

(3) Conducted using an energy analysis tool that has been certified

for accuracy under Sec. 437.200.

(c) Each HERS provider shall compare the estimates provided under

paragraph (a) of this section to determine the energy efficiency rating

of the home and if applicable, the energy efficiency rating of the home

with proposed conservation measures installed.

(d) To encourage the use of energy efficient appliances, each HERS

provider may provide additional information on estimated appliance

energy consumption of the appliances in use in the rated home. This

information will not change the rating procedure set forth in this

section.

Sec. 437.101 Rating point score and star rating.

(a) Point score. The reference home has a score of 80 points on a 0

to 100 point scale. A rated home with the same annual purchased energy

consumption as its associated reference home also has a score of 80

points. Every 0.05 decrease in the ratio (from 1:1) of the rated home's

annual purchased energy consumption to the reference home's annual

purchased energy consumption translates to an increase in the rated

home's score of 1 point. An increase of 0.05 in the ratio translates to

a decrease in the rated home's score of one point. Equation 1 is used

to calculate the point score.

Equation 1

Point score = 100-((ER/EC)/.05)

Where--

ER=Estimated purchased energy consumption for heating, cooling and

water heating of rated home (Btu).

EC=Estimated purchased energy consumption for heating, cooling and

water heating of reference home (Btu).

(b) Star rating. The rated home will be given a star rating between

one and five-plus stars, determined by the numerical score and the

corresponding number of stars depicted in Table 1;

Table 1.--Score and Star Scales for Rated Homes

----------------------------------------------------------------------------------------------------------------

Score Stars Annual purchased energy consumption

----------------------------------------------------------------------------------------------------------------

0-39............................. One.............................. > 3.0 x Reference house.

40-59............................ Two.............................. > 2.0 and 1.0 and 0.70 and 0.40 and = zero and =.56

(6) Vertical fenestration distributed--

(i) For detached homes, equally in each of the four cardinal

directions, north, south, east and west; and

(ii) For attached homes, equally in each of the four cardinal

directions, north, south, east and west, which if necessary may assume

fenestration in common walls;

(7) A frame factor equal to 27% of the gross fenestration area

calculated under paragraph (a)(5) of this section;

(8) The glazed area of the fenestration with a shading coefficient

(SC) of 0.70 assumed during the cooling season, which represents the

combined SC of the glazing and the use of nonwhite draperies and with a

SC of 0.88 representing the SC of the glazing only assumed at all other

times;

(9) No external shading assumed at any time;

(10) The same energy sources for heating, cooling and water heating

used in the rated home;

(11) The same type of HVAC system(s) as the rated home except that

if the rating is for any electrically heated home, the reference home

HVAC system is an air source heat pump;

(12) The efficiencies of HVAC systems set forth in Table 2;

Table 2

------------------------------------------------------------------------

Type Units Rating

------------------------------------------------------------------------

Heating Equipment:

Gas or Oil Warm Air Furnace........................ AFUE 0.78

Gas Boiler (water)................................. AFUE 0.80

Gas Boiler (steam)................................. AFUE 0.75

Oil Boiler (water or steam)........................ AFUE 0.80

Air Source Heat Pump:

(split system)..................................... HSPF 6.80

(package system)................................... HSPF 6.60

Cooling Equipment:

Central Air Conditioner:

(split system)..................................... SEER 10.00

(package system)................................... SEER 9.70

Heat Pump:

(split system)..................................... SEER 10.00

(package system)................................... SEER 9.70

------------------------------------------------------------------------

(13) The heating and cooling system efficiencies proportionally

adjusted for sections of ductwork located outside or inside conditioned

space, with adjustment based on the configuration of the ductwork in

the rated home and using the values set forth in Table 3 and Equation

2;

Table 3.--Forced Air and Hydronic Distribution System Loss Factors

------------------------------------------------------------------------

Outside

Within conditioned space conditioned Unconditioned

space basement

------------------------------------------------------------------------

Forced Air Systems--Duct Location

------------------------------------------------------------------------

Heating 1.00................................ 0.72 0.80

Cooling 1.00................................ 0.72 0.80

Hydronic Systems--Piping Location

------------------------------------------------------------------------

1.00........................................ 0.95 0.95

------------------------------------------------------------------------

Equation 2

Adjusted Efficiency=Equipment Efficiency x Distribution Loss

Factor

(14) The energy factor for the water heater set forth in Table 4

for the size used in the rated house;

Table 4

------------------------------------------------------------------------

Water heating Rated storage capacity (gallons)

------------------------------------------------------------------------

Type Unit 30 gal 40 gal 50 gal 60 gal

------------------------------------------------------------------------

Gas................. EF 0.56 0.54 0.53 0.51

Oil................. EF 0.53 0.53 0.50 0.48

Electric............ EF 0.91 0.90 0.88 0.87

------------------------------------------------------------------------

\1\ EF=Energy Factor.

(15) A seasonal average air leakage rate of 0.67 air changes per

hour;

(16) An internal mass of 8 pounds per square foot of floor area and

a structural mass of 3.5 pounds per square foot of floor area; and

(17) No heat capacitance associated with solar storage mass within

the thermal envelope of the rated home.

(b) For walls of attached homes, the U-value calculation set forth

under paragraph (a)(3) of this section is completed using the

fenestration area calculated as F in paragraph (a)(5)(ii) of this

section and the actual area of walls that experience heat loss or gain.

Common walls that separate homes are not included in this calculation.

Sec. 437.104 Minimum rated features.

(a) Each HERS provider shall complete the annual purchased energy

consumption estimates for heating, cooling and water heating set forth

in Sec. 437.100 of these guidelines using the energy loss and gain

associated with the minimum features set forth in Table 5.

(b) For existing homes, the envelope thermal characteristics of

building elements 1 through 7 set forth in Table 5 are determined by

site observation.

(c) If data for the minimum rated features set forth in paragraph

(b) of this section can not be obtained by observation or without

destructive disassembly of the home, each HERS provider shall use

default values. The default values are determined from the following

sources listed in the preferential order of use--

(1) for manufactured homes, available manufacturer's data;

(2) current and historical local building practices; or

(3) current and historical local building codes.

(d) Default values set forth in paragraph (c) of this section will

be established or approved by the accrediting body and consistent for

each HERS provider operating within a state.

(e) For existing homes, the determination of air leakage and duct

leakage values set forth as building elements 10 and 11 in Table 5 are

determined by data collected on site using the following procedures

listed in preferential order of use:

(1) current on-site diagnostic test data; or

(2) observations of the condition of the building and duct system

made by the HERS provider. Based on these observations values used will

be;

(i) for air leakage, 0.67 air changes per hour or greater with the

minimum value

[[Page 37963]]

of 0.67 to be used only when the rater observes features that denote

tight construction; and

(ii) for duct leakage, default values approved or established by

the accrediting body.

(f) For existing homes, the energy efficiency of the mechanical

equipment set forth as building elements 12 through 14 in Table 5 is

determined by data collected on site using the following sources listed

in preferential order of use:

(1) current on-site diagnostic test data;

(2) name plate data;

(3) manufacturer's data sheet; or

(4) equipment directories.

(g) If information on the energy efficiency of mechanical equipment

cannot be determined from the sources listed in paragraph (f) of this

section, the values set forth in Tables 6 and 7 shall be used.

(h) Any HERS provider may base annual purchased energy consumption

estimates for the rated home on additional features if the HERS

provider's energy analysis tool is capable of doing so.

Table 5.--Minimum Rated Features

------------------------------------------------------------------------

Building element Minimum rated features

------------------------------------------------------------------------

1. Floor/Foundation Construction type (slab-on-grade, crawl space,

Assembly. basement), insulation (edge, under slab,

cavity, sheathing), vented or unvented (crawl

space), capacitance (if slab or basement

receives appreciable solar gain).

2. Walls............... Construction type, insulation value (cavity,

sheathing), capacitance, color (light, medium,

or dark).

3. Roof/Ceiling Construction type, insulation value (cavity,

Assembly. sheathing), roof color (light, medium, or

dark).

4. Rim Joist........... Insulation value (cavity, sheathing).

5. Doors............... Construction type, insulation value.

6. Windows............. Construction type, orientation, U-value (of

complete assembly), solar heat gain

coefficient, shading.

7. Skylights........... Construction type, orientation, tilt, U-value

(of complete assembly), heat gain coefficient,

shading.

8. Passive Solar System Solar aperture area and orientation, thermal

(Direct Gain System). storage mass.

9. Solar Domestic Hot System type, collector type and area,

Water Equipment. orientation, tilt, efficiency, storage tank

size, pipe insulation value.

10. Air Leakage........ Air leakage measurement type (estimate, blower

door test, tracer gas test), volume of

conditioned space.

11. Distribution System System type, location, insulation value (duct

and pipe), air leakage (ducted systems only).

12. Heating Equipment.. Equipment type, location, efficiency (AFUE,

HSPF).

13. Cooling Equipment.. Equipment type, location, efficiency (SEER,

COP).

14. Domestic Hot Water Equipment type, location, energy factor or

Equipment. seasonal efficiency, extra tank insulation

value, pipe insulation value.

15. Control Systems.... Thermostat type.

------------------------------------------------------------------------

Table 6.--Mechanical

--------------------------------------------------------------------------------------------------------------------------------------------------------

1992 to

Mechanical Systems Units Pre-1960 1960-69 1970-74 1975-83 1984-87 1988-91 present

--------------------------------------------------------------------------------------------------------------------------------------------------------

Heating:

Gas Furnace.................................... AFUE 0.60 0.60 0.65 0.65 0.68 0.76 0.78

Gas Boiler..................................... AFUE 0.60 0.60 0.65 0.65 0.70 0.77 0.80

Oil Furnace or Boiler.......................... AFUE 0.60 0.65 0.72 0.75 0.80 0.80 0.80

Air-Source Heat Pump........................... HSPF 4.50 4.50 4.70 5.50 6.30 6.80 6.80

Ground-Water Geothermal Heat Pump.............. COP 2.70 2.70 2.70 3.00 3.10 3.20 3.50

Ground-Coupled Geothermal Heat Pump............ COP 2.30 2.30 2.30 2.50 2.60 2.70 3.00

Cooling:

Air-Source Heat Pump........................... SEER 5.00 6.10 6.50 7.40 8.70 9.40 10.00

Ground-Water Geothermal Heat Pump.............. EER 10.00 10.00 10.00 13.00 13.00 14.00 16.00

Ground-Coupled Geothermal Heat Pump............ EER 8.00 8.00 8.00 11.00 11.00 12.00 14.00

Central Air Conditioner........................ SEER 5.00 6.10 6.50 7.40 8.70 9.40 10.00

Room Air Conditioner........................... EER 5.00 6.10 6.10 6.70 7.70 8.10 8.50

Water Heating:

Storage Gas.................................... EF 0.47 0.47 0.47 0.49 0.55 0.56 0.56

Storage Oil.................................... EF 0.47 0.47 0.47 0.48 0.49 0.54 0.56

Storage Electric............................... EF 0.79 0.80 0.80 0.81 0.83 0.87 0.88

--------------------------------------------------------------------------------------------------------------------------------------------------------

Table 7.--Mechanical Equipment Efficiency Values (Not Age-Based)

------------------------------------------------------------------------

Units Rating

------------------------------------------------------------------------

Heating:

Gas Wall Furnace (Fan)............................ SE 0.70

Gas Wall Heater (Gravity)......................... SE 0.65

Gas Floor Furnace................................. SE 0.60

Gas Water Heater (Space Heating).................. AFUE 0.75

Electric Furnace.................................. HSPF 3.413

Electric Radiant.................................. HSPF 3.413

Heat Pump Water Heater (Space).................... HSPF 5.11

Electric Water Heater (Space)..................... HSPF 2.73

[[Page 37964]]

Cooling:

Electric Evaporative Cooling...................... EERrc 30

Gas Absorption Cooler............................. COP 0.40

Water Heating:

Heat Pump......................................... COP 2.00

Instantaneous Electric............................ EF 0.87

Instantaneous Gas................................. EF 0.75

Solar (Use SRCC Adjustment Procedures)............ EF 2.00

------------------------------------------------------------------------

Sec. 437.105 Operating condition assumptions.

To conduct each rating under these guidelines, each HERS provider

shall estimate the annual purchased energy consumption for heating,

cooling and water heating for both the rated home and the reference

home using the following assumptions--

(a) Temperature control set points for heating and cooling of

68 deg. F and 78 deg. F; .

(b) Where programmable offsets are available in the rated home,

5 deg. F temperature control point offsets with an 11 PM to 7 AM

schedule for heating and a 9 AM to 3 PM schedule for cooling, and with

no offsets assumed for the reference home;

(c) Internal heat gains from lights, people and equipment of 3000

Btu/hr for detached homes and 1500 Btu/hr for attached homes;

(d) Estimated hot water usage based on Equation 3.

Equation 3

Gallons/day=30 gallons+(10 gallons * number of bedrooms).

(e) the climatologically most representative TMY or equivalent

weather data, which may be interpolated between weather sites if

interpolation is established or approved by the accrediting body and

consistent for each HERS provider operating within a state.

(f) Corrections for climate conditions and mis-sizing of equipment,

using correction factors to HSPF, SEER and AFUE that are established or

approved by the accrediting body and consistent for each HERS provider

operating within a state.

(g) Local residential energy or utility rates that--

(1) Include fuel/energy unit rates;

(2) Include fuel/energy unit demand rates;

(3) Include fuel/energy block rates;

(4) Include customer service and fuel charges;

(5) Are updated at least annually; and

(6) Are confirmed by the accrediting body

Sec. 437.106 Non-rated energy consuming devices.

Consistent with Sec. 437.102(a) (3) and (4) of these guidelines

each HERS provider shall calculate and report the annual purchased

energy consumption and energy cost for the operation of all non-rated

energy consuming devices in the rated and reference homes. Actual

efficiency of these devices is not considered and usage estimates are

based on Table 8. The data in table 8 may be modified if they are

established or approved by the accrediting body and consistent for each

HERS provider operating within the state.

Table 8.--Annual Energy Use for Non-Rated Features

----------------------------------------------------------------------------------------------------------------

End use Units/year Energy estimate Applicability

----------------------------------------------------------------------------------------------------------------

Ceiling Fan................... kWh.......... 220/ea.................. If present.

Dishwasher.................... kWh.......... 299/per cooking area.... If present, or if space is dedicated

for DW.

Dryer, electric............... kWh.......... 875/ea.................. If present, or if 220V wiring is

present @ dryer location.

Dryer, gas.................... Therms....... 60/ea................... If present, or if gas piping is present

kWh.......... 100/ea @ dryer location.

Lights........................ kWh.......... 940..................... All homes.

Microwave Oven-built-in....... kWh.......... 191/per cooking area.... If permanently installed.

Miscellaneous Plug Loads...... kWh.......... 500..................... All homes.

Pool Pump..................... kWh.......... 1700/ea................. If present.

Range/Oven Combo-electric..... kWh.......... 450/per cooking area.... If present, or if 220V wiring is

present @ range location.

Range/Oven Combo-gas w/pilot.. Therms....... 44/per cooking area..... If present, or if gas piping is present

@ range location.

Range/Oven Combo-gas w/o pilot Therms....... 22/per cooking area..... If present.

Refrigerator.................. kWh.......... 1150.................... Each one present.

Television.................... kWh.......... 720..................... All homes.

Washer, clothes............... kWh.......... 99/ea................... If present, or facilities present for

washer.

Well pump..................... kWh.......... 288/ea.................. If present.

----------------------------------------------------------------------------------------------------------------

Sec. 437.107 Projected ratings for to-be-built homes.

(a) A HERS provider may calculate the projected rating of a to-be-

built home based on architectural drawings with material, mechanical

and electrical specifications; and by--

(1) Using a default value for air leakage of 0.67 air changes per

hour; and

(2) Using the planned location and orientation of the proposed

home, or if the proposed orientation is unknown, calculating ratings

for the home facing each of the four cardinal directions, north, south,

east and west, and using the lowest rating score as the projected

rating.

(b) Upon completion of construction and verification of the

proposed specifications, the rating may be revised using the air

leakage rate based on on-site testing and the actual orientation of the

home.

Subpart C--How To Administer a Home Energy Rating System

Sec. 437.200 Energy analysis tool requirements.

(a) In order to be certified for the purpose of providing home

energy ratings under these guidelines, an energy analysis tool must--

(1) Demonstrate the ability to calculate annual purchased energy

consumption for each building type for which ratings are provided;

(2) Estimate the total annual purchased energy consumption

associated with the minimum rated features set forth in Sec. 437.104;

(3) Calculate energy use of non-rated energy consuming devices set

forth in Sec. 437.105 of these guidelines;

(4) Reflect the operating conditions assumptions described in

Sec. 437.105 of these guidelines; and

(5) Pass all tests in Tier 1 and Tier 2 of the Home Energy Ratings

System Building Energy Simulation Test (HERS-

[[Page 37965]]

BESTEST)--NREL Report no. NREL/TP-472-7332 which is administered by,

and has pass-fail criteria set by the accrediting body.

(b) Future tool requirements. On or before [insert date four years

from the date of the final rule], each HERS provider accredited under

these guidelines, shall have updated their energy analysis tool to be

capable of rating the following additional features--

(1) Thermostat set-back and set-up;

(2) Effects of part load and weather conditions on HVAC systems;

(3) Demand and time of use utility rates;

(4) Solar water heating;

(5) Trombe walls;

(6) Sunspaces; and

(7) Whole house fans.

(c) Energy analysis tools that are certified under paragraph (a)(5)

of this section must be retested and recertified if a new version of

the tool is released that includes changes to the engineering

algorithms.

Sec. 437.201 Site data collection manual.

Each HERS provider shall provide each data collector with a manual

containing procedures for the on site collection of data that are:

(a) Consistent with those provided in Guideline No. 10 of the Home

Energy Rating Systems Council HERS Guidelines, titled ``On Site

Inspection Procedures''; or

(b) Established or approved by the accrediting body and updated as

supplemental or revised information becomes available.

Sec. 437.202 Training home energy raters.

Each person seeking a position as a full rater, data collector, or

data analyst for any HERS provider shall receive training prior to

performing rating tasks without supervision. The training will be

conducted in accordance with a syllabus developed by each HERS

provider. The syllabus must specify subjects that are applicable to

each position (i.e. full rater, data collector or data analyst) and

must include--

(a) Classroom training. Each rater shall receive classroom training

on--

(1) Basic principles of heat transfer (i.e., viewing the home as a

system);

(2) The minimum rated features of buildings;

(3) Variations in construction types and their ramifications;

(4) Types and efficiencies of windows;

(5) Types and efficiencies of heating, cooling, water heating, and

lighting systems;

(6) Types and characteristics of space conditioning and domestic

hot water distribution systems;

(7) Types of thermostatic controls;

(8) Determination of azimuth;

(9) Determination of air leakage;

(10) Determination of fuels used by major appliances;

(11) Utility rate structures;

(12) On-site inspection procedures;

(13) Producing a scale and dimension drawing of a home;

(14) Calculating the area of rectangles, triangles, circles, ovals

and combinations of these shapes;

(15) Calculating the volume of boxes, pyramids, spheres, and other

geometric shapes;

(16) Communicating the benefits of energy saving measures and

practices to the consumer; and

(17) Quality assurance.

(b) Written examination. Each rater shall be given a written

examination that evaluates the rater's understanding of the subjects in

paragraph (a) of this section.

(c) Field training. Each rater shall perform two ratings (or

portions of ratings for those seeking to be data collectors or data

analysts), including software operations, in the presence of trainers.

(d) Probationary period. Each rater shall complete a probationary

period where close supervision is provided. This period covers a

minimum of five ratings, after which the supervisor shall determine if

additional training is needed.

(e) Challenge test. A challenge test may be taken, which, if passed

in all competencies, will waive the classroom training requirement. The

requirements of paragraphs (c) and (d) of this section may not be

waived.

Sec. 437.203 Quality control.

(a) Each HERS provider shall establish a quality assurance plan

that includes--

(1) Periodic peer review and re-evaluation of raters;

(2) Random auditing of each rater's work;

(3) Evaluation of the training program by raters after field

experience;

(4) Customer evaluation of rating services;

(5) Random review of the inputs into the rating tool to ensure that

they are consistent with the data collected in the field; and

(6) Verification of the accuracy and completion of the input forms

and output of the first five ratings performed by each rater.

(b) Each HERS provider shall maintain a permanent quality assurance

file that is updated at least every two years or when changes to the

system are made, and contains--

(1) A description of local rate structures for electricity, gas and

other locally used fuels;

(2) A description of climatological data (including interpolation

methods) used;

(3) A description of the data storage and maintenance systems

including--

(i) Software for database;

(ii) Training for data entry personnel; and

(iii) Data quality assurance procedures that will be exercised;

(4) A description of each rating tool that the HERS provider uses

including a list of which home types the tool supports;

(5) The results and date of the certified accuracy test conducted

for the rating tool;

(6) An example of the rating outputs that are produced;

(7) The materials and tests used to provide training for home

energy raters;

(8) The materials used to document the site data collection

procedures; and

(9) A description of the individual elements of the quality

assurance plan set forth in paragraph (a) of this section.

(c) Each HERS provider shall maintain an electronic database of

information for each home rated. The minimum content of the database

is--

(1) A unique file reference or ID number;

(2) Date of on-site inspection;

(3) Raters name;

(4) Tool name and version;

(5) Identification of weather data used for the rating;

(6) Type of rating, either complete or projected;

(7) Use of rating, either--

(i) Time of sale rating;

(ii) Pre-home improvement rating;

(iii) Post home improvement rating; or

(iv) Information only rating;

(8) Address of rated home;

(9) Home type;

(10) Floor area of conditioned space;

(11) Fuel types used by building HVAC and water heating systems;

(12) Minimum rated feature energy efficiency data used to determine

the rating;

(13) In the four categories of heating, cooling, water heating and

all other uses, the--

(i) Estimated annual purchased energy consumption in total;

(ii) Estimated annual purchased energy consumption by fuel;

(iii) Estimated annual energy cost in total; and

(iv) Estimated annual energy cost by fuel.

(14) Estimated total annual energy cost for all uses; and

[[Page 37966]]

(15) Rating score of the rated home on 0-100 points scale and 1-5+

stars category.

Sec. 437.204 Monitoring and evaluation.

(a) Each HERS provider shall at least semi-annually evaluate the

accuracy of consumption and cost estimates by comparing predicted

energy usage and costs to actual billing records.

(b) To allow the accrediting body to monitor the accuracy of

ratings, each HERS provider shall for 10% or for 500 of the homes rated

annually, whichever is less, maintain a database of the following--

(1) Homeowners authorization for the release of consumption

information by utility company(s);

(2) Weather data site selected for energy estimation;

(3) Any energy efficiency improvements made to the home, date of

completion, and whether the improvement plans were evaluated in the

rating report.

Sec. 437.205 Guideline compliance.

(a) Full accreditation. Any HERS provider may be accredited as

being in full compliance with these guidelines if it demonstrates that

it can--

(1) Conducts ratings in accordance with the provisions of

Sec. 437.100;

(2) Reports the results of ratings in accordance with the

provisions of Sec. 437.102 of these guidelines;

(3) Produces documentation of a correctly configured reference home

in accordance with the provisions of Sec. 437.103;

(4) Provides documentation that their energy analysis tool is

certified under Sec. 437.200 as having passed all HERS-BESTEST tests

designated as Tier 1 and Tier 2 tests;

(5) Provides training in accordance with the provisions of

Sec. 437.202;

(6) Provides documentation of a quality control plan and a

permanent quality assurance file in accordance with the provisions of

Sec. 437.203; and

(7) Provides documentation of a monitoring and evaluation program

in accordance with the provisions of Sec. 437.204.

(b) Basic compliance. Any existing HERS provider may be accredited

for a period of up to two years from [insert date of issuing final

rule], as being in basic compliance with these guidelines, by

demonstrating that it meets all the provisions of paragraph (a) of this

section except that it may--

(1) Use a simplification of utility rate structures;

(2) Rate only the features set forth by Sec. 437.104, that may be

rated with its existing system capabilities;

(3) Use only those standard operating conditions set forth in

Sec. 437.105 that can be handled by their existing energy analysis

tool;

(4) Pass only the Tier 1 set of HERS-BESTEST tests;

(5) Meet the training requirements of Sec. 437.202 by--

(i) Verification that each person with responsibilities in the

conduction of ratings has completed classroom training on all items set

forth in Sec. 437.202 (a) of these guidelines;

(ii) Verification that each person with responsibilities for the

conduction of ratings has received field training;

(iii) Verification that all personnel have successfully passed a

written objective examination in all areas applicable to their

designated job descriptions; and

(iv) Verification of a probationary period set forth in

Sec. 437.202 (d); and

(6) Use an existing program to monitoring and evaluate the accuracy

of ratings;

Sec. 437.206 Accreditation.

(a) Each HERS provider operating in voluntary compliance with these

guidelines shall be accredited only by a State or other independent

accrediting body having a person or persons--

(1) Qualified to establish and coordinate standard default values

within a State, for--

(i) Default values for minimum rated features set forth in section

437.104;

(ii) Operating condition assumptions and local climatic data

interpolation set forth in section 437.105 of these guidelines;

(2) Qualified to administer the procedures for certification of

energy analysis tools established by HERS-BESTEST set forth in the NREL

Report no. NREL/TP-472-7332 referenced in Sec. 437.200;

(3) Qualified to evaluate the training syllabus and procedures set

forth in Sec. 437.202;

(4) Qualified to review and evaluate the quality control procedures

set forth in Sec. 437.203.

(b) Any Lender or agency in a mortgage business who offers mortgage

or loan incentives for energy efficiency on the basis of a home energy

rating should require that any HERS provider conducting those ratings

be accredited under these guidelines.

[FR Doc. 95-18015 Filed 7-20-95; 8:45 am]

BILLING CODE 6450-01-P