Issues & Publications
Programs & Initiatives
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Climate Change - Issue Summary
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| What is the fundamental issue? |
| Pending before Congress is climate change legislation that includes energy efficiency provisions for commercial and residential buildings. Congress has been debating ways to limit U.S.’s contribution to heat-trapping gases including carbon dioxide (CO2) that scientists say warms the earth and could lead to more extreme weather that exacerbates geopolitical and economic tensions around the globe. Meantime, the EPA is moving forward with regulations to reduce CO2 emissions from automobiles and buildings under the Clean Air Act. |
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| I'm a Realtor®. What does this mean to my business? |
| If Congress or EPA were to impose mandatory federal energy efficiency requirements, property owners’ ability to sell their home or building without having to first conduct energy audits and improve the heating and cooling system, windows, insulation or lighting would be at risk. |
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| NAR Policy: |
NAR policy supports reasonable approaches and incentives to improving energy efficiency, but not individual building mandates particularly if they are imposed at time of sale. The policy supports:
* Commercially reasonable and incentive-based approaches to reduce energy use and greenhouse gases;
* Solutions that are guided by market and smart-growth principles of protecting private property rights and maintaining real estate affordability and availability; and
* Educating property owners and consumers about the many benefits of energy efficiency.
It opposes:
* Requirements which impose undue economic burdens on property owners or managers;
* Triggering such requirements at the time when real property is sold; and
* Expanded application of existing laws/regulations that are not suited to address climate change. |
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| Legislative/Regulatory Status/Outlook: |
Last summer, the House of Representatives approved H.R. 2454: the American Clean Energy and Security Act, which includes energy efficiency provisions for new construction only. Realtors® succeeded in making a number of positive changes affecting the real estate provisions of the bill. The House–approved bill:
* Does not create a federal energy audit, labeling or multiple listing requirement for real property;
* Exempts existing homes and buildings from any federal guidelines for new construction energy efficiency information labels;
* Leaves the decision to states as to whether and how to develop energy labeling programs, but prohibits the implementation of any labeling during a sales transaction;
Provides property owners with significant financial incentives, matching grants and tools to make property improvements and reduce their energy bills;
Prohibits the EPA from regulating residential and commercial buildings under the Clean Air Act;
Eliminates an early proposal to allow citizens to sue over minor climate risks under the Clean Air Act; and
Establishes green building incentives for HUD housing, including a loan program for renewable energy, block grants and credit for upgrades in mortgage underwriting.
In the Senate, only two of the six committees have reported provisions which ultimately would be merged into one omnibus energy bill and become the Senate’s response to H.R. 2454. The Energy and Natural Resources Committee reported the omnibus bill's energy provisions, which are far less prescriptive than the House on building codes and energy information. The Environment and Public Works Committee reported the companion climate provisions. While these Senate-reported bills are less prescriptive, the House bill would nevertheless exempt existing real estate from energy labeling and prohibit the EPA from moving forward with regulation of CO2 emissions from commercial and residential buildings.
In addition, Senators including John Kerry (D-MA), Lindsey Graham (R-SC) and Joe Lieberman (I-CT) have outlined principles and are working to develop a bipartisan way forward for a Senate bill. As the legislative process unfolds and the Senate continues to develop omnibus energy legislation, NAR will continue to work with members of Congress to maintain the real estate exclusions from energy labeling and any other bill provisions that will have a direct impact on the real estate sector.
Meanwhile, Vice President Joe Biden announced a new "Recovery Through Retrofit" initiative that includes creation of "energy performance labels" and "national energy performance measures" for existing homes, despite the House bill’s exclusion for existing homes and buildings from energy labeling. NAR has written the White House and various federal agencies and is following up with meetings to reinforce our strong concerns about the stigmatizing effects of these labels on real estate at one of the most critical moments in the nation's economic recovery. |
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| Related Information: |
| In-Depth: the American Clean Energy and Security Act |
 Link to Thomas
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