The National Fenestration Rating Council (NFRC) welcomes content from guest bloggers. In this posting, Chris Potter, Communications Associate with the Institute for Market Transformation (IMT), shares his thoughts on the benefits of energy code compliance for consumers.

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It’s been six years since the global financial crisis struck—yet tens of millions of consumers are still recovering, shouldering the costs of irresponsible lending by reckless financial institutions and purveyors of the real estate bubble. While wages have stagnated since the 1970s, the costs of groceries, health care, taxes, and fuel for our homes and vehicles have increased, making it crucial for homeowners not to waste money on high energy bills—the second biggest expense next to mortgage payments.

Unfortunately, many buildings in the U.S. are hemorrhaging energy and eroding potential saving benefits simply by being built below the standards of modern building energy codes. Non-compliance with energy codes from state to state is astounding and is as high as 100 percent in some jurisdictions.

Like many worthwhile initiatives today, compliance efforts at all levels of government suffer from strained budgets. However, education can go a long way and make significant progress despite tightened belts. IMT has seen this through its Standard Bearers award program. Our 2012 Energy Code Champion, Gil Rossmiller in Parker, Colo., educated the town’s building community and integrated energy code enforcement into Parker’s existing processes, reducing opposition toward more rigorous code enforcement by showing the results of home energy ratings.

IMT and other organizations are working hard to help building departments reap the benefits of building to the modern energy code through strategies like streamlining regulatory processes to remove overlap and create more efficient administrative procedures—this can make departments more effective at enforcing construction code requirements while improving customer service and saving money.

And with the passing of a rating-based compliance path (RE188) to the 2015 International Energy Conservation Code, builders now have greater flexibility to meet the code at a reasonable cost, removing the typical point of conflict between builders and efficiency advocates. With this new option, the time is right for a large national push to increase compliance. Because it doesn’t matter how excellent a standard is if nobody follows it.

Some of the more outstanding benefits of increasing energy code compliance are:

It saves money: Houses built to stronger codes are up to 44 percent more efficient and can save families hundreds of dollars a year on energy costs—money that can make the difference on whether or a family can pay its mortgage. IMT estimates the savings from bringing just a year’s worth of new residential and commercial construction in the U.S. up to full compliance could reach $189 million. This equates to lifetime savings of up to $37.1 billion for just five years' worth of new buildings, helping the economy and reducing carbon emissions.

It protects consumers: One of the objectives for IMT in promoting energy code compliance is to help prevent harm (financial and otherwise) to consumers while advocating for good practices that benefit them, not unlike the role of the Consumer Financial Protection Bureau. Ensuring that houses are built up to the modern energy code provides a cushion to unexpected events that could make mortgage repayment more difficult; it protects people from unfair, deceptive, or harmful building practices that can cost families in dollars and safety; it allows them to shelter in place for longer if the power goes out during an ice storm or heat wave; and it ensures they will live in a comfortable and secure home.

It assures quality: An energy code compliant home is one that is safer, more resilient, and has better indoor air quality—something IMT and Britt/Makela addressed in a recent report.

People want green buildings: As we see in a new McGraw-Hill study, green building grew even during the recent recession. It went from 2 percent in 2005 to 23 percent in 2013 and could reach up to 33 percent of the market by 2016. Consumers are also willing to pay more upfront for money-saving green features. A 2012 survey by the National Association of Home Builders found that nine out of ten buyers said an ENERGY STAR^® rating for their home is "desirable or essential”—even if the home costs 2 to 3 percent more than a comparable home.

It takes strain off energy programs: A recent op-ed in The State pointed out that the South Carolina Low Income Home Energy Assistance Program, a federal program that helps pay for home heating and cooling for its most vulnerable and low-income residents served over 72,000 S.C. households in 2012, up from 18,218 households in 2009. By ensuring homes are built in compliance with the current codes, those homeowners are less likely to need federal assistance in paying their utility bills and if they do, the amount will be less.

FHA requires it for purchasing new homes: For a homebuyer to qualify for a Federal Housing Administration (FHA)-insured mortgage to purchase a newly built house, the house must meet the standards of a modern energy code. FHA insured about 700,000 purchase mortgages in 2013, 10 percent being for new homes.

Given all of the major benefits and circumstances, and the knowledge and tools we have at our disposal, it’s time to make energy code compliance the norm, not the exception.

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The Institute for Market Transformation (IMT), founded in 1996, is a Washington, DC-based nonprofit organization promoting energy efficiency, green building, and environmental protection in the United States and abroad. The prevailing focus of IMT’s work is energy efficiency in buildings.