[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Rawson

 

DATE TYPED:

1/30/02

 

HB

 

 

SHORT TITLE:

Review Building Energy Codes

 

SB

SJM 18

 

 

ANALYST:

Joey F. Sandoval

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC files

 

Responses Received From

Energy, Minerals and Natural Resources

 

No Response

Regulation and Licensing Department

 

SUMMARY

 

Senate Joint Memorial 18 requests that the Construction Industries Commission review its residential and commercial building energy codes in an effort to update and improve the energy efficiency of New Mexicans’ homes and commercial buildings.  The Energy, Minerals and Natural Resources Department (EMNRD) and the Construction Industries Division of the Regulation and Licensing Department are directed to work cooperatively with the Commission to improve the energy codes. 

FISCAL IMPLICATIONS

 

None reported.

 

ADMINISTRATIVE IMPLICATIONS

 

Currently, EMNRD’s Energy Conservation and Management Division (ECMD) provides assistance to homebuilders and contractors to meet the requirements of the 1986 and 1992 New Mexico model energy codes.  This assistance will shift to helping with newer energy codes, if adopted. 

 

OTHER SUBSTANTIVE ISSUES

 

·     A Western Governors’ Association resolution, entitled “Western States’ Energy Policy Roadmap” (August 2001), encourages western states to review and improve the energy efficiency of their building codes.  New Mexico’s Commercial Energy Code is over 15 years old and the Residential Code is over 10 years old.

·       EMNRD-ECMD receives grants from the U.S. Department of Energy to help the state implement and train contractors and homebuilders on compliance with new energy codes.

·       The lowest cost and easiest opportunity to improve the energy efficiency of a home is during construction.  The benefits are realized over the life of a home, which may be more than 30 years. 

·       Energy efficiency opportunities are very cost-effective and usually pay for themselves in less than 5 years.  These measures pay for themselves much quicker if energy prices double or triple as they did with natural gas last winter.

·       New Mexico citizens will have more disposable income if they have energy-efficient homes.

 

POSSIBLE QUESTIONS

 

  1. What are the New Mexico model energy codes?
  2. Is this an increased cost to New Mexico residents and if so by how much?

 

JFS/njw

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