MEMORANDUM

TO: All Kansas Legislators

FROM: Tom Young, Coordinator of the Capital City Task Force

American Association of Retired Persons (AARP)

DATE: April 3, 1995

RE: HB 2707, energy efficiency building codes

AARP urges all legislators to oppose HB 2707, which, if passed, would eliminate an important consumer protection for all Kansans.

HB 2707 would overturn a 1995 KCC order establishing minimum energy efficiency standards for residential construction. The KCC has exercised that authority since the legislature delegated responsibility to it in 1977. The 1995 order requires home builders certify that new homes either meet minimal energy efficiency standards, or simply notify the home buyer that the new home does not meet the stateÆs energy efficiency building code.

AARP believes that such notification is important consumer protection information that benefits all Kansans, and particularly our members, which are often on fixed incomes. Utility bills or medical costs are usually the largest monthly expenditure for older Kansans, so it is important that all Kansans be able to assess the potential cost of utilities before buying a new home. And, since future sellers would not have to notify buyers about energy efficiency, certification on construction is critical. Passage of HB 2707 would largely eliminate the information necessary to make such a decision.

Proponents of HB 2707 claim the KCC order is burdensome regulation, and local control of building codes is an overriding concern. AARP believes otherwise.

The standard proposed by the KCC is the Model Energy Code 1993 (MEC 93). MEC 93 was developed by a voluntary private sector initiative, not by Federal mandate. It is extremely flexible, allowing tradeoffs among a variety of energy efficient designs and devices, and recognizes Kansas has 5 different climate zones that require different construction methods. Further, the KCC order permits compliance through a variety of alternative standards, and permits non-compliance if the home builder notifies the home buyer.

AARP believes a statewide approach is needed because too many rural and small town areas in Kansas lack the resources to adopt or adequately enforce residential construction codes. However, the KCC order allows localities to assume control of energy efficiency building codes if the locality has tougher standards.

While complying with MEC 93 will add about $120 a year to the cost of the typical mortgage in Kansas, it will save about $175 a year in utility bills. AARP believes that is an example of good public policy, because it more than pays for itself. Additionally, there is the possibility that new homes built in Kansas that do not meet the minimal energy efficiency standards in the KCC order will not qualify for federally backed mortgages, such as FHA, VA, and HUD financing. Last year, 20% of homes sold in Kansas were purchased with federally backed mortgages, which are made available primarily to low-income and first-time home buyers.

Consumer protection, lower utility rates, and less expensive financing are critical issues of affordable housing in Kansas. We ask that you and your colleagues vote NO on HB 2707.