Media: Energy disclosure ordinance stirs debate (Finance & Commerce)

Feb 5, 2019

From Finance & Commerce:

Minneapolis residents may gain a sense of how much energy will cost when they buy homes and rent apartments if the City Council approves a new energy disclosure ordinance this month.

The ordinance would do three things. First, it would require home sellers to complete two additional inspection tests and provide energy-efficiency information. Second, multifamily buildings of 50,000 square feet or more would have to disclose energy benchmarking data by using Energy Star Portfolio Manager, just as commercial buildings do now. Third, energy-consumption data that utilities collect on all the city’s residential rental housing will be made available to renters in the future...

...Chris Duffrin, president of the Center for Energy and Environment, said both CenterPoint Energy and Xcel Energy have aggregation tools allowing apartment building owners to collect data from all meters. “That’s all automated now,” he said. “No one wanted to touch this issue until that was done.”

In most cases Duffrin believes sellers will not make energy improvements, leaving those to buyers who can see in TISH reports suggestions on what energy improvements they can make, the expected return on investment and financing options available from the city and utilities.  Homes built after 1980 will not undergo the additional tests because residential energy code standards began that year.

While highly energy-efficient homes may be able to capture higher prices, Duffrin believes prices for most homes will be unaffected by energy disclosure. “People buy old homes because they like old homes, and they like living in the city,” he said, and a bad energy score isn’t likely to become a negotiating chip...

Read the full article at Finance & Commerce

Related links

Blog: Time-of-Sale Energy Disclosure: Knowledge means consumer power
Report: Transforming the Market for Energy Efficiency in Minneapolis