Vermont
Housing &
Conservation
Board

Vermont Housing & Conservation Board
and Vermont Housing Finance Agency

Policy on the Conservation of Energy and Water in Residential Properties

3/19/04

The Vermont Housing and Conservation Board and Vermont Housing Finance Agency are concerned about the conservation of natural resources as well as the creation of housing that is perpetually affordable to lower income households. In order to assure such affordability, it is important to keep operating expenses, including utility expenses, as low as possible. Energy improvements and devices that conserve water have been shown to be cost effective in that capital costs can be paid for over time in savings to the operating budget. Therefore, the Board and the Agency adopt the following policy related to the conservation of energy and water in residential properties:

I. General Goals

Building projects receiving funding from VHCB or VHFA should:

A. Achieve a level of energy and water efficiency that will result in maximum long-term housing affordability.

B. Select designs and systems with consideration of:

1. Economy

2. Future flexibility

3. Operation and maintenance costs

4. Impact on the environment, including potential use of renewable resources

C. Plan and implement mechanisms to encourage energy and water conservation practices by residents and owners.

D. Keep records of energy consumption by fuel type and on an individual building basis and on a residential unit basis where metering permits.

E. Periodically re-evaluate the energy and water using systems of each building under their ownership for cost-effective improvements.

II. Specific Energy Conservation Goals

A. New Construction

1. New Construction projects should be designed and built to a level of energy efficiency that meets or exceeds the levels required to qualify for the ENERGY STAR label from the US Environmental Protection Agency (EPA).

2. For low-rise (3 stories or less) new construction, the requirements for achieving the ENERGY STAR label under the EPA ENERGY STAR Homes program are well established and result in buildings which typically require over 20% less energy than if built to the minimum requirements of Vermont’s Residential Building Energy Standards (available from Efficiency Vermont at 888-921-5900).

3. For high-rise (4 stories or more) new construction, the level of efficiency to be achieved is over 20% less energy than if built to the minimum requirements of Vermont’s Guidelines for Energy Efficient Commercial Construction (available from Efficiency Vermont at 888-921-5900) or ASHRAE 90.1 (1999 or later version). While requirements for achieving the ENERGY STAR label for high-rise buildings are still under development, it is expected to be consistent with this level of energy efficiency.

4. In addition, new construction projects should be designed and built to minimize the life cycle cost of any lighting, appliances or other equipment not addressed by the ENERGY STAR standard.

B. Existing Construction

1. Rehabilitation of existing buildings should endeavor to meet the ENERGY STAR levels of efficiency specified above for new construction. However, if life cycle cost-benefit analysis indicates a lower level of efficiency would be optimal for the particular circumstances of a rehab project, or a lower level of rehab is associated with the project, the design and construction should include levels of efficiency in all components that will result in maximum long-tem housing affordability. Where energy-related building materials, equipment, lighting and appliances are available that bear the ENERGY STAR label, they should be specified and used.

III. Specific Water Efficiency Goals

A. Projects should seek to include all cost effective water saving measures including but not limited to: bathroom faucets rated at ≤ 0.7 gpm (≤ 2.0 gpm for faucets on a DHW system without circulating loop), bathroom faucets at ≤ 1.5 gpm (≤ 2.0 gpm for faucets on DHW without circulating loop), showerheads at ≤ 2.0 gpm, and toilets rated at ≤ 1.6 gallons per flush.

IV. Specific Indoor Air Quality Goals

A. Applicants should strive to achieve the highest indoor air quality in both new and rehabilitation projects. A key to this is controlling moisture infiltration and air leakage. By adding effective ventilation, units should be designed to reduce moisture resulting in fewer mold and mildew problems. Efficient heating systems should force exhaust outside and in turn keep indoor air clean.

V. Energy Specifications

A. In order to achieve the goals stated above, grantees should incorporate all measures included in Efficiency Vermont’s Multifamily Housing Checklist (available at 888-921-5990). If such measures can not be implemented, applicants must explain to VHCB and VHFA staff why not.

B. Provide a description of the status of utility sponsored efficiency programs, such as Efficiency Vermont, Burlington Electric Department, or Vermont Gas Systems, as they may apply to the project and the extent of likely participation in the project.

C. The completed checklist will be part of the application materials submitted to the Board.

D. Specifications for construction or rehabilitation shall include the energy and water use aspects of the work and shall specifically address: the building envelope, the heating, ventilating, and air conditioning system, domestic hot water system, lighting system, appliances, and any water saving devices to be installed.

E. Grantees may be required to employ an energy professional in the development of specifications and to supervise the energy related portion of construction work.

VI. Compliance and Commissioning

A. Commissioning is the process of ensuring that building systems are designed, installed, functionally tested, and capable of being operated and maintained according to the owner's operational needs. It is expected that, when a project is placed in service, mechanical systems will operate as specified. Grantees are encouraged to plan for and include appropriate funds in the project development budget to cover costs associated with an appropriate level of commissioning. The cost of commissioning is dependent on the size and complexity of the project, but it accounts for only a small portion of the construction budget. When commissioning is done properly, the savings usually far outweigh the costs. It is expected that commissioning or another approved method of operational testing will be completed within the construction warranty period on the following systems at a minimum:

1. Boiler and heating systems and controls (for systems over 250,000 BTUs total heating capacity)

2. Air conditioning system and controls (for systems over 10 tons total cooling capacity)

3. Ventilation systems and controls including bathroom fans (all projects)

VII. Energy Concerns in Ongoing Project Management

Project management plans should include ongoing energy management including: bulk purchasing of fuel, cooperative purchasing of fuel, competitive bidding for fuel purchase, seasonal maintenance schedule, routine maintenance of heating plant, tenant education, and in cases where the owner pays utilities, discussion of whether or not any restrictions will be placed on what type of appliances residents will be allowed to install or utilize (e.g. air conditioners).

VIII. Funding

Grantees are encouraged to use multiple resources or programs to pay for implementation, including but not limited to utility efficiency programs, such as, Efficiency Vermont, Burlington Electric Department, and Vermont Gas Systems, and the State Economic Opportunity Office/Community Action Agency weatherization programs.

IX. Education

A. VHCB and VHFA will continue to work with other housing agencies, Efficiency Vermont, and the Public Service Department to continue to educate housing developers and property managers about energy and water consumption issues.

B. Grantees are encouraged to make residents aware of energy and water consumption and to educate them about ways to reduce such consumption, and to provide incentives, if feasible.