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HUD Manufactured Housing Consensus Committee (MHCC) Meeting May 23, 2007

Improving Energy Efficiency, Indoor Air Quality & Durability in HUD Code Manufactured Housing Standards. HUD Manufactured Housing Consensus Committee (MHCC) Meeting May 23, 2007 Michael Lubliner – MHCC member Building Science Specialist WSU Energy Program. Background.

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HUD Manufactured Housing Consensus Committee (MHCC) Meeting May 23, 2007

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  1. Improving Energy Efficiency, Indoor Air Quality & Durability in HUD Code ManufacturedHousing Standards HUD Manufactured Housing Consensus Committee (MHCC) Meeting May 23, 2007 Michael Lubliner – MHCC member Building Science Specialist WSU Energy Program

  2. Background • NFPA-501 – 1999 through 2005 • Pacific Northwest (PNW) Super Good Cents/NEEM • Energy Star PNW & National Program • MHCSS/MHCC Uo Economic Analysis • USDOE Building America Industrialized Housing Partnership • Published Peer Reviewed Research Papers

  3. Position on Technical Meeting Issues • Vent Free Gas Products – Just say no! • In-Plant Duct Leakage Testing – Just do it! • Condensation Control – Devil’s in the details! • Window Standards – Storm windows in new homes? • Energy Efficiency Improvements (Uo) – IECC equiv?

  4. NFPA-501 Energy & Building Science Opportunities • 4.3.1.3 Lighting requires T8 lamps - Energy Star fixtures & bulbs? • 4.3.2 Whole house ventilation - ASHRAE 62.2? • 8.5 Air Infiltration - Add Appendix 8.5.1.1 for “air sealing details”? • 8.6.1.1 Heat Transmission - Update Uo to IECC/Energy Star levels? • 8.8.5 Window U-values - Use NFRC NOT AAMA? • 8.8.5 Cooling - Add Appendix A-8.8.5 on roof solar reflectance? • 8.8.3 Insulation - Add Appendix 8.8.3 for “installation details”? • 8.8.7.1 Cooling - Add Appendix 8.7.1 SHGC (save ½ ton on AC size)? • 10.14.10 Duct Materials – Mastic vs. tape on inside of ducts? • 10.14.8 Crossover Duct Insulation – Add R8 insulation all zones • 10.14.5 Duct Testing – support MHCC proposed 5% or 3% leakage?

  5. Pacific Northwest NEEM* Program • Over 120,000 HUD-code homes built since 1988 • Utilities invest $100,000,000 in Demand Side Management • Provided a “better deal” then new coal power plant • R21 walls, R38-49 ceiling, R33 floors, Vinyl Low E Glass • SEO quarterly inspections + HUD process • Duct leakage testing in plants + random field testing • Problem home technical assistance • Northwest Council - ACEEE paper + 2007 letter to Congress (*) Northwest Energy Efficient Manufactured (NEEM) Homes built to Super Good Cents and Energy Star

  6. NEEM vs. National Energy Star Program • Over 5000 Energy Star PNW homes since 2004 • 3863 of 5170 Energy Star homes were built in PNW in 2006 • All 19 PNW plants ship to WA, OR, ID, MT, CA, NV, UT • Over 60% of PNW HUD-code Homes are Energy Star • Utility incentives to buyer + $1000 tax credit to builder • Energy Star similar to SGC + improved duct testing + mastic • What we learned “don’t wait for the dealer to sell it”

  7. What We HaveAccomplished Over112,000 (58%)of New Manufactured Homes Produced since 1988 Have BeenSuper Good Cents/Energy Star

  8. PNW Industry Support - 100% NEEM participation (19 plants)

  9. R33 Batt Floor Insulation

  10. R33 Blown Floor Insulation

  11. In-floor Duct System

  12. Duct Leakage TestingIn-plant and on-site

  13. Focus on Performance Testing/Tools

  14. The nation’s most energy efficient HUD-code home in 1996. This home costs less than $60 a month in utility bills. Located near Olympia, WA in a marine climate (my home!) WSU Energy HouseUSDOE Building America Research

  15. Zero Energy Manufactured HomeUSDOE Building America Research The nation’s current most energy efficient HUD-code home cost less than $40 a month in utility bills and provides solar electricity to the utility grid. Located near Lewiston, ID in a cold climate

  16. NIST Manufactured Home Installed Jan 2002 Very leaky ducts & envelope = lost opportunity

  17. Air Leakage Control“Build Tight Ventilate Right”Marriage Line & floor gaskets, Tight CFL Can-Lights

  18. House Tightness – AIVC 2003

  19. Metal Duct Risers & Trunk Mastic Systems

  20. Outside Duct Leakage – AIVC 2003

  21. NEEM vs. Site Built Energy Codes

  22. Life Cycle Cost Input Assumptions:The “Things” That Vary • Mortgage Rate and Term • Consumer Discount Rate • Downpayment • Private Mortgage Insurance (for less than 20% down) • Retail Electricity and Natural Gas Prices • Retail Electricity and Natural Gas Price Escalation Rate • State and Federal Income Tax Rate • Property Tax Rate • Homeowner’s Insurance Rate • Measure Incremental Cost (function of home size and price) • Measure Incremental Savings (function of home size, heating system type and fuel source) slide 10

  23. Consumer Life Cycle Cost Model Schematic

  24. Net Present Value by Measure, Heating Cold Climate

  25. Summary – NWPPC 2004 • All measures tested have higher Net Present Values (NPV) than current HUD code minimums, in all PNW climate zones and across all heating system types • The “regionally cost-effective” thermal shell (Uo) is roughly the current NEEM standard (Uo =.049-.054) and • Is equal to the “maximum” NPV thermal shell (Uo) – i.e, the shell that provides the consumer with the lowest life cycle cost.

  26. NEEM Label Identifies Value in the Marketplace • Single wide $1700. • Double wide $2200. • Triple wide $2500. • See section 3, page 13 for details

  27. Super Good Cents Adds Value Spokane, WA. 70 degree indoor temp. $.05 kWh Net Energy Savings after additional mortgage payment Down payment Added Resale Return per NADA appraisal

  28. National Cost Effectiveness Research • PNNL/HUD 1992 Study - Resulted in current Uo • PNNL/DOE 2002, ACEEE 2004 - Suggested Uo improvements • NFPA-501 2005 - Reduced PNNL/DOE improvements • ASHRAE 2007 - HUD92, NFPA05, ESTAR, IECC and BA • Senate Energy 2007 Hearings - ASE proposes IECC • MHCSS 2007 - “do the right thing ????” • NFPA 501 2008 – “think long term” (i.e. Toyota Prius!)

  29. Uo Comparison – ASHRAE 2007 Zone HUD94 NFPA05 PNL04 IECC Estar • .116 .098 .089 .097 .087 • .096 .090 .077 .067 .084 • .079 .073 .064 .062 .059 (*) Nominal R-value of floor, ceiling & wall & U = windows

  30. Consumer Cost Comparison - ACEEE 2004 HUD 1994 to IECC 2006 Zone Floor Roof Walls Glass Delta - Uo & $ 1 11-13 30-30 11-13 1-2A .116 - .097 $89 $0 $70 $547 $706 2 11-19 30-38 11-13 1stm-2V .095 - .067 $495 $150 $70 $275 $990 3 22-25 30-38 11-19 1stm-ES .078 - .062 $135 $150 $510 $455 $1250 PNNL mfg cost data x 1.85 mfg x 1.35 dealer mark-up Floor + ceiling + wall + windows = total Nominal R-value of floor, ceiling & wall, U=window

  31. Consumer Monthly Mortgage Increase HUD 1994 to IECC 2006 Zone Total Cost 20 yr @ 12% 30 yr @ 7% 1 $706 $7.77/mo. $4.70/mo. 2 $990 $10.90/mo. $6.59/mo. 3 $1250 $13.76/mo. $8.32/mo. Assumes: 1500 ft2 two section home @12% glass

  32. Consumer Monthly Energy Savings HUD 1994 to IECC 2006 - ASHRAE 2007 Zone Electric Nat. Gas Propane HP 1 $10.42 $7.67 $11.92 $8.08 2 $15.17 $8.83 $13.72 $8.92 3 $28.67 $16.83 $26.16 $16.00 Assumes: $0.09-0.10/kWh, $1.10/therm NG, $1.90/gallon or 1.71/therm

  33. Consumer Monthly Mortgage Base Uo on sub-prime lending? Scenario #1 - US Bank San Diego, 5/07 Senior Buyer - 5% down, 600-650 credit score Loan = 20-25 year term @ 11.75% Scenario #2 - 21st Mortgage, 5/07 “Bottom Feeders” Loans Marginal Buyer - 5% down, (sub-prime) Loan = 20 year @ 14.25% - Future loan defaults?

  34. CONCLUSIONS • Significant improvements in energy efficiency and HVAC performance are achievable at minimal or no incremental monthly cost to the homebuyer • Energy improvements are cost effective if utility saving is converted to increased mortgage purchase power, and increased resale value is recognized, OR using Life Cycle Costs • Areas of improvement include: building envelope & duct air leakage, HVAC, lighting, appliances, insulation and windows/doors • Improvements result in greater occupant comfort and control of the indoor environment (drafts, moisture, mold, IAQ pollution etc.)

  35. Reduced moisture and durability related liabilities to homebuyers, dealers, builders, insurance companies and lenders National adoption of IECC will save over $20 millions of dollars per year in utility bills to new homebuyers. Energy Star homes + Energy Star HVAC will save consumers to over $750,000,000 over 30 years, at 2004 production Other benefits include; increased energy independence, reduce national residential energy consumption, reduce power plant greenhouse gas emissions and climate change impacts. Lower federally subsidized low income utility bill voucher & weatherization taxpayer expenses. Start with 100% Energy Star and use your Tax Credits and explore win-win solutions with other stakeholders. Energy Star = $1000/home x 150,000 homes/yr = $150,000,000/year from IRS to stockholders or homebuyers? Want site built home interest rates, then build to site built energy codes”

  36. New Homes with Federally Subsidized Mortgages and New Public Housing: “About one in 12 new homes in the United States is a manufactured housing unit (147 million in 2005). Because these homes are factory-produced with many standardized components, manufactured housing units should be inherently more energy-efficient than their site-built counterparts. To qualify for a federally insured mortgage, a new home should be required to meet or exceed the efficiency levels of the model energy code (currently the 2006 IECC). This will assure that federal taxpayer funds are not used to underwrite inefficient new homes with higher utility bills.” HUD-Code Housing Alliance to Save Energy Senate Testimony

  37. MHI Modern Homes Mar/April 2007 “Although the high efficiency of Energy Star Homes improves comfort, lowers monthly energy bills and total home ownership and results in lower carbon emissions that are good for the environment, it has been slow to gain wide spread market acceptance in the factor built housing industry. Higher first cost remains the single greatest market barrier.” HUD-CODE Housing Impacts National & Environmental Security

  38. HUD Report to Congress Aug 8, 2006 “Promoting Energy Efficiency at HUD in a Time of Change” Section 6.1 – Implement energy efficiency recommendations of the MHCC in HUD-code homes HUD-CODE Housing Impacts National & Environmental Security

  39. Executive Order – Jan. 24, 2007 “Strengthening Federal Environmental, Energy and Transportation Management” Goal: Reduce greenhouse gases through reduction in energy intensity of 3% per year, or 30% BY 2015 HUD-CODE Housing Impacts National & Environmental Security

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