Testimony opposing legislation eliminating energy efficiency building standards

Delivered to the Kansas Senate Energy and Natural Resources Committee

March 18, 1996

 

Good morning, Mr. Chairman and members of the committee.  Thank you for the opportunity to appear before you on HB 2707.  My name is David Schlosser, and I work with Pete McGill and Associates to represent the interests of the North American Insulation Manufacturers Association, or NAIMA, in Kansas.

NAIMA opposes HB 2707 for a variety of reasons.  You will hear from several other conferees who oppose 2707 because energy efficiency building codes are good public policy.  I am speaking today for three reasons:

First, I want to introduce you to the people who will persuade you that energy efficiency building codes are examples of good regulations -- regulations that provide more value than they cost to implement.  In addition to the people who will testify today, including representatives of Habitat for Humanity, the AFL-CIO, and the American Association of Retired Persons, the you will find attached to my testimony a considerable sheaf of papers that will describe the benefits of reasonable energy efficiency regulations.

Second, I want to acquaint you with the process that produced the Model Energy Code for residential energy efficiency, and its adoption in Kansas.

Third, I want to convince you that process is an example of developing regulations that should be respected and copied.

The Council of American Building Officials (CABO) developed the Model Energy Code (MEC) through a voluntary private initiative that brought together parties interested in construction and energy efficiency.  Through negotiation and consensus, the MEC 93 was voluntarily developed by private industry -- not government bureaucrats.

For almost 20 years, Kansas statutes have given the Kansas Corporation Commission (KCC), an independent regulatory body, the authority to restrict connection to utility service of newly constructed buildings that do not meet minimum energy efficiency standards.  The KCC adopted the MEC 93 standards in 1995 after public hearings in which all interested parties had ample opportunity to offer input and ask for considerations.

The KCC's order responded to concerns expressed by the proponents of HB 2707 by explicitly providing six different methods for meeting the model energy standards and an opt-out clause for contractors who do not wish to comply with those standards.  The opt-out requires only that builders notify the home buyer that their new home does not meet energy efficiency requirements.  NAIMA believes that all the KCC's alternatives adequately address the concerns of HB 2707's proponents.

Other conferees will directly refute the proponents' reasons for supporting 2707.  I am here to suggest that you should not overturn an independent regulatory body's decision that was arrived at through an excellent example of voluntary, private-sector initiative and public input.

The legislature should always have the authority to question whether any regulatory agency has conducted itself adequately and thoroughly, and overrule any regulatory authority adopted by a questionable process.

However, this is not such an instance.  The energy standards adopted by the KCC were developed through voluntary, private sector initiative and consensus.  They were adopted by the KCC after public hearings with solicitation of considerable input.  At every stage in the development of the MEC and its adoption by Kansas, the proponents of HB 2707 have had an opportunity to voice their concerns.  In response, the KCC included in its order a variety of options for builders, including not complying with the Model Energy Code.

Favorable recommendation of 2707 sends the wrong message to regulators -- that when, after public hearing and input, they adopt good standards, developed through voluntary private-sector consensus, with creative alternatives for compliance and even an option for non-compliance, the legislature will allow participants in that very process to derail good public policy.

Passage of HB 2707 is not good public policy, and I urge you to defeat it.