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Bills critical to Home Inspection.
SENATE, No. 449
STATE OF NEW JERSEY
214th LEGISLATURE
(Previously S706)
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Senator ROBERT W. SINGER
District 30 (Burlington, Mercer, Monmouth and Ocean)
SYNOPSIS
Requires licensed home inspector to report an energy rating for each home
inspected for buyer in contemplation of purchase.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
S449 B. SMITH, SINGER
2
AN ACT concerning home energy 1 ratings and supplementing
2 P.L.1997, c.323 (C.45:8-61 et seq.).
3
4 BE IT ENACTED by the Senate and General Assembly of the State
5 of New Jersey:
6
7 1. The Commissioner of Community Affairs, in consultation
8 with the Board of Public Utilities and the Home Inspection
9 Advisory Committee in the Division of Consumer Affairs in the
10 Department of Law and Public Safety, shall adopt, pursuant to the
11 "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et
12 seq.), an energy rating code for the purpose of establishing adequate
13 and appropriate standards to rate the energy efficiency of homes.
14 The energy rating code shall incorporate aspects of the New Jersey
15 Energy Star Program.
16
17 2. Every home inspection performed by a licensed home
18 inspector during the course of an inspection in contemplation of the
19 purchase of a residential property shall include a report containing
20 the energy rating for the home, prepared in accordance with the
21 energy rating code established pursuant to section 1 of
22 P.L. , c. (C. ) (pending before the Legislature as this bill).
23
24 3. This act shall take effect immediately but shall remain
25 inoperative until the promulgation of an energy rating code pursuant
26 to section 1 of this act.
27
28
29 STATEMENT
30
31 This bill requires the Commissioner of Community Affairs, in
32 consultation with the Board of Public Utilities (BPU) and the Home
33 Inspection Advisory Committee in the Division of Consumer
34 Affairs in the Department of Law and Public Safety, to adopt an
35 energy rating code to be used by licensed home inspectors in the
36 preparation of an energy rating for a house inspected for a buyer in
37 contemplation of its purchase. The code is to incorporate aspects of
38 the New Jersey Energy Star Program, which encourages products to
39 meet or exceed energy-efficiency guidelines set by the United
40 States Environmental Protection Agency (EPA) and the Department
41 of Energy (DOE). Currently, the BPU operates a “Home
42 Performance with ENERGY STAR®” program in Atlantic County,
43 with an intention to expand the program to the rest of the State.
44 The goal of that initiative, according to the BPU website, is to offer
45 “state residents access to trained, certified home improvement
46 contractors that deliver state-of-the-art energy-efficiency
47 improvements to their home. In addition the program provides
S449 B. SMITH, SINGER
3
extensive technical training, financial 1 incentives and business
2 development support to established contractors and professional
3 tradespeople, with the purpose of increasing market opportunities
4 for energy-efficiency services within the state.” Drawing on that
5 expertise, the Commissioner of Community Affairs would adopt
6 and promulgate an energy rating code that would be used by every
7 licensed home inspector to produce a report containing the energy
8 rating for a home inspected in contemplation of its purchase
American Society of Home Inspectors
Garden State Chapter
Senate Bill S706 / Assembly Bill A1630
Sponsors:
Assembly Persons Senators
John F. McKeon as Primary Sponsor Bob Smith as Primary Sponsor
Upendra J. Chivukula as Primary Sponsor Robert W. Singer as Primary Sponsor
Linda Stender as Primary Sponsor
Linda R. Greenstein as Co-Sponsor
Statement of Position
December 4, 2008
Senate Bill Nbr. S706 (Assembly Bill Nbr. 1630) advocates the inclusion of an “energy efficiency analysis” with every home inspection performed for a potential homebuyer within the state of New Jersey. Although such an analysis may prove beneficial to a potential homeowner, the Garden State Chapter of ASHI does not feel the performance of such an analysis should become a component of the home inspection process. Our rationale for this position is as follows:
· The inclusion of an energy efficiency analysis will most certainly increase the cost of the inspection due to the purchase of additional inspection equipment and the increased time needed for the home inspector to perform such an analysis.
· The scope and procedure of an energy analysis have not been defined in this bill. If the standards of practice are developed to require extensive inspection and documentation protocols, a home inspection may become cost prohibitive to many buyers, negating the value of this bill. The mandatory nature of an energy efficiency analysis may limit access to a home inspection and this presents a significant disservice to homebuyers.
· Home inspector insurance providers have indicated that they can not measure the risk involved with performing an energy analysis and will not provide coverage to home inspectors who perform this service. Without insurance, we are legally prohibited from performing home inspections.
· As observations derived from a home inspection are based on visual conditions, the quantity and condition of insulation in concealed areas (exterior walls, finished attics, etc.) can not be determined. The homebuyer may not feel the information gained from the energy efficiency analysis warrants the additional cost involved for performing such an analysis.
· There are limitations involved with some electronic equipment that can be used to perform an energy analysis. The use of some equipment is weather and temperature dependent, which negates proper use during certain weather conditions and possibly entire seasons. If the energy analysis is a required component of the home inspection, the inspection may need to be delayed until proper weather and temperature conditions are available. This is not conducive to the time constraints involved with most home purchase transactions.
· As the majority of homes located throughout the state of New Jersey consist of older structures, they are most certain to return an unfavorable energy analysis outcome. The inclusion of such an analysis may diminish the value of older homes due to the perceived energy cost involved with older construction.
In summary, making the energy audit a required component of every home inspection has the potential to price buyers out of the home inspection process entirely. This can produce a damaging effect on the buyers’ ability to ascertain the condition of a potential home purchase as well as to real estate sales and our membership. Should a homebuyer desire an energy analysis, the buyer has the ability to contact a qualified professional to perform such an analysis outside the scope of the home inspection process. In this way, the energy analysis can provide useful information to those homebuyers who can most appreciate and make use of its value.
Jason Mitchell
Legislative Chairperson
Garden State Chapter of ASHI
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Bills Related to the Construction and/or Housing Industry
ASSEMBLY, No. 1556
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Camden)
Assemblywoman L. GRACE SPENCER
District 29 (Essex and Union)
SYNOPSIS
Establishes standardized energy audit and training program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
A1556 LAMPITT, SPENCER
2
AN ACT concerning energy audits and t 1 raining and supplementing
2 Title 52 of the Revised Statutes.
3
4 BE IT ENACTED by the Senate and General Assembly of the State
5 of New Jersey:
6
7 1. The Office of Energy Savings in the Department of the
8 Treasury and established in 2006 pursuant to Executive Order #11,
9 in consultation with the Department of Labor and Workforce
10 Development and the New Jersey Community College Consortium
11 for Workforce and Economic Development, shall, within 180 days
12 after the date of enactment of this act, develop a standardized
13 energy audit for use by the State.
14 The standardized energy audit shall, at a minimum, analyze
15 energy efficiencies and the feasibility of installing on-site
16 renewable energy systems or retrofitting State buildings and
17 facilities with energy efficiency improvements that can be cost
18 effectively implemented within a timely payback period.
19
20 2. a. The department and the New Jersey Community College
21 Consortium for Workforce and Economic Development, in
22 consultation with the Office of Energy Savings, shall develop and
23 establish a program to provide training to persons who conduct
24 energy audits in the State and may include third parties to assist in
25 the training program or in developing a curriculum for the energy
26 audit training program.
27 b. Every building manager of a State-owned building or
28 facility, and every person who conducts an energy audit for a State29
owned building, shall successfully complete the energy audit
30 training program within 180 days after it is developed and the
31 course is offered. After the first course enrollment for the energy
32 audit training program, a newly hired building manager of a State33
owned building or facility, or any person who conducts an energy
34 audit for a State-owned building or facility, shall have 90 days to
35 successfully complete the program.
36 c. An individual may, for a reasonable fee, enroll in the energy
37 audit training program and, upon successful completion, shall be
38 authorized to perform a standardized energy audit for the State.
39
40 3. This act shall take effect immediately.
41
42
43 STATEMENT
44
45 This bill would require the development of a standardized energy
46 audit, for use by the State, and a corresponding training program.
A1556 LAMPITT, SPENCER
3
The standardized energy 1 audit would include analyzing energy
2 efficiencies and the feasibility of installing on-site renewable
3 energy systems or retrofitting buildings and facilities with energy
4 efficiency improvements that can be cost effectively implemented
