Do Your Part to Extend the IRS Section 25c Tax Credit for Home Energy Improvements

 

Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Both homeowners and manufacturers have benefited from the Energy Tax credits offered from 2009 – 2011 for home improvements that improve energy efficiency. For example, adding insulation to attics and basements, replacing drafty doors and windows and replacing a roof with an ENERGY STAR rated roof.  At a time when homeowners have been tightening their belts, this credit helped to sustain the building industry through upgrading and remodeling in the current home inventory.

A large part of the building inventory in the U.S. is over 30 years old.  The building codes where not as stringent back then and what we are learning is that the building envelopes are not as tight as they should be.  Statistics from ENERGY STAR show that homes that have added insulation to attic spaces, basement ceilings, and walls have seen a reduction in their heating/cooling bills over time.

On December 31, 2011, the Energy Tax Credits will expire. Yet, the work to improve the efficiency of homes and buildings is far from over.

As member of the Insulation Contractors Association of America (ICAA) & Council of NAIMA, CertainTeed supports the extension of Energy Tax Credits – IRS Section 25c until 12/31/2013.

Please write your Senator and Congressional representative to:

  • Extend the expiration date to 12/31/2013.
  • Raise the tax credit cap to $1500 from $500.
  •  Include the cost of labor for building envelope components (like insulation) the tax credit calculation.

Please visit www.capwiz.com/insulate/home/  to see the issue and a model letter.  Click the Take Action button – the support letter is already there – fill in the sender information and hit send message.  It’s that easy!

 

 

The U.S. Green Building Council Beefs Up LEED 2012 Standards

Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation.

Do you remember the Wendy’s ads that featured an old woman walking up to the counter of a burger joint and asking “Where’s the Beef?” Well there are times when I feel the same way about our efforts in the U.S. to really advance energy efficiency.

I am glad to see that the U.S. Green Building Council is upgrading the Leadership in Energy and Environmental Design (LEED) certification standards.  The bar needs to be continually raised especially with regard to measuring the long-term results of energy upgrades.  But will they have gone far enough and are there tools available now to accurately measure performance?

The retrofit market clearly needs to be encouraged to improve energy efficiency.  One way that this is happening in major cities is through mandates.  New York and San Francisco have such mandates but there are a great many cities and towns between those that are not even ready to mandate LEED on new construction.

Even with a stalled economy with regard to new construction, manufacturers continue to develop products that propel us into sustainability: wallboard that removes formaldehyde from the air; insulation that minimizes its environmental impact; and solar roofing to harness power from the sun instead of the grid.  But without real incentives or mandates we continue to be a nation of obvious consumption because the cost of energy is still reasonable, for now.

The new LEED rating systems do include more stringent requirements regarding the sharing of data on a building’s energy use and owners of LEED certified buildings will have to re-apply for certification every five years.  This is crucial because maintaining the systems is just as important as installing them in the first place.

In a previous blog, I discussed the ASHRAE (American Society of Heating, Refrigerating, and Air-Conditioning Engineers) Energy Quotient which rates buildings on energy consumption.  Making these tools standard practice will drive us as consumers to improve the efficiency in our homes and buildings.  It supports the “buyer beware” far beyond the current home inspection process.

More and more professionals are getting credentialed in building energy rating which will increase the ability to test buildings and make recommendations.  These are the green jobs that are coming on line. Now we need to add more ‘beef’ and some incentives (not necessarily hand-outs) to help building and home owners choose a sustainable future.

Energy Awareness Begins with You

As we approach the close of Energy Awareness Month remember it is never too late to start improving energy efficiency whether in your home or in you life.

With tax rebates about to end, possibly forever, this is the last opportunity to reduce the cost of replacing windows or doors or insulating that attic.

The most beneficial investment a homeowner can make is to conduct an energy audit.  This will give you a firm handle on where your home is losing energy and the improvements you can make to correct the problems.  These problems don’t have to be handled all at one time.  The important thing is now you have an idea of how to make adjustments to reduce energy loss while contemplating replacing aging systems with more efficient new systems.

As a way to boost energy awareness, Energy Star created a video challenge as part of their Take the Pledge program to increase participation from Americans in all walks of life.  Take the Pledge boasts that Americans participating in the Pledge have amassed $793,107, 376 in energy savings, eliminated 10,243,261,274 lbs in greenhouse gases and have saved 6,008,157,595 kilowatt hours of electricity.

The short videos in the video challenge are creative, instructive and entertaining. View a sample of these below:

You can view all the videos on the Energy Star Take the Pledge page.

Making changes, however small, in your daily activities to reduce your carbon footprint make a huge difference over time.  Changing your light bulbs to compact florescent (CFL) or light-emitting diode (LED) bulbs is one place to start.

But like many efforts to make substantive change – it starts with YOU!

Vicky Gallagher is Supervisor, Corporate Marketing Communications for CertainTeed Corporation

Excessive Wet Weather Can Lead to Mold

Lucas Hamilton

The historic rain that the United States has endured in 2011 has increased moisture levels in places where moisture has never been a problem. I have heard from many people around the country who have never had water in their homes but have recently sustained water damage and are now concerned about potential mold.

As I have mentioned in a previous blog, mold needs four things to grow:  moisture (liquid water), food (typically starch or sugar), temperature between 41° and 104° and oxygen.  When water is trapped behind walls or paneling, the other elements will most likely be present and the potential for mold growth will exist. Try to clean and dry areas subjected to water within 48 hours to help prevent mold growth. After cleaning and drying, continue to be sensitive to musty odors in the affected area.

Check the exterior of homes and building regularly for accumulating ground water.  Many parts of the country have far exceeded saturation and mold can begin for form outside and find its way inside. If water is accumulating against your foundation, take measures to drain the water away from your building. Keeping things dry is the key to preventing mold growth.

There are many products available today to help protect the home or building from moisture infiltration and mold growth.  There are coating products that can be applied to dry materials to mitigate any mold growth potentials for that surface in the future. If materials are wet and can’t be cleaned or completely dried, remove them from the building and replace them with new materials which may be more mold resistant. Fiber glass doesn’t have the food needed for mold growth but often when insulation gets wet, the water which intruded into the cavity was dirty and brought food along with it. If you have wet insulation, replace it with new fiber glass.  If replacing drywall, consider selecting a board that that contains mold and moisture inhibitors.

Many people have sensitivities to mold and it can be a health concern.  Make sure that you take extra care to check for mold especially if this is the first time you are dealing with water inside your home or building. Use a mixture of common sense and caution- if it smells or looks bad assume that it is bad and take appropriate measures.

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Embodied Energy Versus Operational Energy

Lucas Hamilton

Recently during a webinar I was conducting, the topic came up of embodied energy versus operational energy.  This topic continues to come up as building scientists evaluate systems with regard to their sustainability.

There are two things that can make a product green. It can be green in its manufacture or it can be green in its application.  One of the important topics for understanding the manufacture or delivery of a product is the concept of embodied energy – how much cumulative energy went into the extraction of the raw materials, the manufacture of the product and the transportation of the product to its final application.  This is the concept of embodied energy. Operational energy relates to how much energy the product uses or can save once it has been applied or installed into a system. 

For instance, look at insulation. Many types of insulation are actually very energy intensive in their manufacture, however once they are installed they can save many times over within the very first year of their application. A perfect example of operational energy is fiberglass insulation. In its first year of use, fiberglass insulation can save 12 times the amount of energy it took in making and transporting the product.

So let’s not throw out the baby with the bath water. Sometimes, material that is superior in performance with regard to the life cycle of a building may have a little bit of negative upfront energy costs, however in its use can be very positive. 

So don’t make a judgment solely based on the embodied energy but rather on the life cycle of the project to determine if it is positive or negative for the project itself.

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Rules Matter When it Comes to R-Value

Ken Forsythe

We all know there are ‘rules’ that everyone might not follow to the letter: “Speed Limit 55”…”Do Not Remove Mattress Tag Under Penalty of Law”…”Lather, rinse, repeat.”  When it comes to heating and air conditioning ductwork, there’s another rule many insulation contractors rarely follow:  “When installing bubble wrap insulation on ductwork, secure spacers every 24” to 36” around duct before applying wrap.”

While there’s no harm if you skip the “repeat” step when washing your hair, there can be serious utility bill consequences if installers leave out the placement of spacers between a duct and bubble wrap insulation. Bubble wrap insulation needs the thermal break provided by the air space that is created by spacers to achieve advertised R-values.  The actual R-value of improperly wrapped (i.e. no air space) duct with bubble wrap can be as low as R-0.90 to R-1.1.  Building Inspectors and owners need to be aware of what to look for to insure that the product performs properly.

In checking with HVAC insulation distributors to determine if insulation contractors routinely purchase air spacers with their bubble wrap, the answer is often “We’re still on our first shipment of spacers” or an outright, “We never sell any of those.”

Often bubble wrap insulation manufacturers do include spacer instructions with options for installers to create their own spacers by cutting and placing 2” wide strips of bubble wrap around the duct in intervals before applying the wrap around the duct or applying corner spacers specifically made for the purpose at each corner of rectangular duct.  But with so much pressure on insulation contractors to keep labor to a minimum, it’s hard to imagine that the vast majority are taking the time to create or use spacers on every project. Let’s face it: installers care about installing as quickly as possible for the lowest cost.

It’s true that quality bubble duct wrap may have good reflectivity and provides some protection against conductive heat gain or loss – as does fiber glass duct wrap with FSK (Foil-Scrim-Kraft) facing – however, the bubble wrap industry needs to do a better job educating installers and/or HVAC contractors. Educating the industry about the science behind adding air spacers and their integral role in delivering promised R-value is an important first step and is in everyone’s best interests.

 Ken Forsythe is a Senior Product Manager for CertainTeed Mechanical/Industrial Insulation

Are We Entering a Decade of Growth for Remodelers

Rosemary Hayn

Rosemary Hayn

Every two years, The Joint Center for Housing Studies of Harvard University publishes a report supported by the companies and organizations who participate on two of their committees; the Policy Advisory Board and the Remodeling Futures Steering Committee.

The most recent report, A New Decade of Growth for Remodeling provides some insights that can help building professionals as they continue to struggle with a sluggish housing market.

If you follow the industry to great lengths, as I do, these reports provide a great deal of factual information from an historical perspective but only a small amount of forecast data.

For example, it is a given that older metropolitan areas have older stock that need energy efficiency upgrades while growth areas in the South and West have newer inventory. The number of remodeling opportunities, therefore, will be more abundant in older parts of the country.

When reading this report the questions one should ask are:  What’s new? What’s different? What do I need to know? 

Here are a few highlights:

  • Green projects will continue to provide important growth opportunities.  The results of the National Green Remodeling survey indicate that important projects where homeowners specified green features increased by 25% over all projects. Tax incentives due to energy efficiency, under the Federal Stimulus, helped support that increase.
  • The share of replacement product systems upgrades that support energy efficiency will continue to grow.
  • Energy efficiency upgrades for new and existing homes offers a huge potential for remodelers.
  • With the economic downturn, immigration has slowed but as the economy recovers, new immigrants will contribute greatly to the remodeling industry over the next decade.
  • Homeowners will continue to invest in small upgrades that provide a quicker payback or have incentives attached to them.  With the reduction in the 2011 Economic Stimulus to $500 the projects could remain very small in scope.

From 2000-2005 there was a  7.3 percent growth rate for homeowner improvement spending, followed by a five year trend showing a -1.4 percent in spending.  The report anticipates a 3.5 percent annual growth rate in home improvement spending which puts the 2010-2015 period in the middle of the two previous five year periods.

Also, in the next five years the number of households moving into 55 – 64 and 65+ age ranges will be preparing for retirement.  If they plan to age in place they will, most likely, need to make renovations to their home to improve the energy efficiency and lower the maintenance needs of the structure such as increased insulation or low maintenance exterior cladding. This will be another opportunity for remodelers.

From 2002 – 2007 there was a 23% increase in specialty contractors and self-employed remodelers but since then, remodelers have struggled due to declines in homeowner spending and the increased competition from builders-turned-remodelers. 

What we don’t know, because the data isn’t collected annually, is how many have survived the economic downturn. Clearly those who diversified their services or moved into niche markets, such as energy efficiency upgrades, most likely, have survived.

Rosemary Hayn is Manager, Market Research and Planning for CertainTeed Corporation

School Districts Are Embracing LEED Buildings

Lucas Hamilton

Large urban and smaller sub-urban districts alike are increasing their focus on building schools that are certified by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program because this practice results in more state funding.  Schools get funding based upon population – the actual number of students that they teach every day- not the number of school age children living in their district.  That is a number that is taken daily called attendance. 

If  40 percent of  a school district’s population is not showing up, that district will receive 40 percent less state funding than may be deserved. While the goal of the school district may be to educate our children, the first task is to get kids to show up. This is not just for all the right reasons, such as, the importance of learning and that it is in the best interest of society in general but also because that is the way the school district gets paid.

Statistics show that building more sustainable spaces results in increased student attendance over schools constructed with outdated techniques and materials (and decreased staff absenteeism due to illness).  Building sustainably also improves the acoustics and indoor environmental quality of the building. Incorporating acoustical ceilings, noise reducing gypsum wallboard and adequate levels of insulation contributes to the creation of optimum learning environments. Recent studies have shown that optimizing learning space acoustics ultimately improves student retention and test scores (another critical metric by which schools are judged).

For some urban school districts, the school buildings themselves may be the nicest spaces that the child will be in all day. While this is considered collateral benefit, it’s well worth it for the school district to invest in sustainable spaces because the children feel better, they are healthier, more positive about the experience and will be in the classroom on a more consistent basis.

If you look at the upfront costs to build a school, why would a school district strapped for cash build a school above and beyond code?  Because it will pay for itself!

 Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

Make Energy Upgrades Part of Your Refinancing

Lucas Hamilton

As the real estate market begins to come back every mortgage broker and real estate agent should be talking to customers about adding energy upgrades if they are refinancing or changing properties.  If you are touching your mortgage in any way, now is the time to include the energy upgrades into your plans. 

If you are changing properties and moving to a new house get energy upgrades built into the mortgage because it will generate positive cash flow immediately. It’s like buying a rental property and having a tenant in it already.  Also, you are borrowing at a lower rate and getting paid back at a higher rate. Adding insulation and tightening the building envelop in older homes will improve your energy efficiency almost immediately.

I recently participated in a panel discussion about energy upgrades and presented the results of a series of REM / Design simulations that showed what the actual savings would be by adding insulation and making a home more air tight.  I secured a quote from an insulation contractor for a passive upgrade to a house built in the 1980’s to show what the cost versus savings would be, not only upfront, but over time.  It would cost $22 per month in the mortgage but it saved $28 per month in energy costs. These figures are based on today’s energy prices. As energy becomes more expensive, the savings increase. Not only do the upgrades save energy but they also contribute to a healthier indoor environment in the home.

You can never go wrong upgrading an older home to 2009 building code standards because it will enable you to compete with newer, more energy efficient construction when you decide to sell.  As I discussed in an earlier blog, if we begin to label homes with energy ratings it is in the best interest of the homeowner to upgrade so they will have a higher energy rating. 

With mortgage rates as low as they are, it makes perfect sense to make those energy upgrades now.

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation

IBS 2011– The Builders’ Land of Oz

Tom Silva from This Old House at CertainTeed's IBS booth

I spent January 12 – 15 at the International Builders’ Show (IBS) in Orlando, Florida. This annual event is sponsored by the National Association of Home Builders (NAHB). I was amazed how global the show has become over the years not only with exhibitors but with attendees as well.  While the show is not as large as it has been in the past and the attendance is down, attendees were there with projects. Hopefully this is an indication that industry recovery is on its way.

This show is truly the Land of Oz for builders who’ve survived the poppy fields of the past three years. The show booths are exquisitely designed and display products and processes that improve the quality of and the efficiency of the building envelope.  But it is not just products that make the difference in the design, execution or renovation of projects; it’s the interaction of the products in the assemblies and the knowledge to execute the construction correctly.

To this end, many exhibitors included training and demonstrations as part of their exhibits.  Providing the knowledge of how to correctly create systems for efficiency in the envelope is key to successful tightening of a building. I presented a series of trainings on “Sustainability and the National Green Building Code”, “Selling Energy Efficiency”, and “Moisture and Mold Prevention in Building Assemblies” at the CertainTeed booth.  We were honored to have Tom Silva, general contractor for This Old House speak at our booth again this year.  Tom answered questions from the audience and shared some great information for professionals. Some of the issues that Tom discussed will be featured in future blogs.

Among the high interest products and systems in our booth this year were AirRenew™, a wallboard that removes formaldehyde and other aldehydes from the air;  Diamondback Tile Backer a high-performance tile backer that features a bonding technology that makes tile installation simpler, faster and less costly;  EnerGen™, a photovoltaic solar power roofing product that integrates with traditional asphalt roofing and our hybrid insulation system, discussed in a previous blog, which combines spray foam insulation, blown insulation and a vapor retarder to create a cost-effective way to create a thermally superior airtight seal in the wall systems.

With more that 1,000 exhibitors at the convention it was a bit like stepping out of the dark woods of the past three year construction market and into a bright and sunny field of poppies. As tempting as it was to inhale deeply and lay down for a rest, we know that it takes friends, courage, heart, and wisdom to make it all the way to the Emerald City.  For this weary traveler, at the end of these events, there’s no place like home.

Stay tuned for future blogs which may discuss how Pink Floyd’s Dark Side of the Moon predicted our recent construction slump and what it says about future housing starts.

 

Lucas Hamilton

Lucas Hamilton is Manager, Building Science Applications for CertainTeed Corporation