Executive Summary A research project in the state of Alabama identified opportunities to reduce homeowner utility bills in residential single-family new construction by increasing compliance with the state energy code. The study was initiated in March 2014, and continued through May 2014. During this period, research teams visited 134 homes during various stages of construction, resulting in a substantial data set based on observations made directly in the field. Analysis of the data has led to

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... a better understanding of the energy features present in homes, and indicates nearly $1.3 million in potential savings to Alabama homeowners that could result from increased code compliance. Public and private entities within the state can use this information to justify and catalyze future investments in energy code training and related energy efficiency programs. Methodology The project team was led by the Institute for Market Transformation (IMT) with support from the Alabama Department of Economic and Community Affairs (ADECA), Cadmus, the Institute for Building Technology and Safety and Calhoun Community College. The team applied a methodology prescribed by the U.S. Department of Energy (DOE), which was based on collecting information for the energy code-required building components with the largest direct impact on energy consumption. These key items are a focal point of the study, and in turn drive the analysis and savings estimates. The project team implemented a customized sampling plan representative of new construction within the state, which was originally developed by Pacific Northwest National Laboratory (PNNL), and then vetted through public meetings with key stakeholders in the state. Following data collection, PNNL conducted three stages of analysis on the resulting data set ( Figure ES .1). The first stage identified compliance trends within the state based on the distributions observed in the field for each key item. The second modeled energy consumption of the homes observed in the field relative to what would be expected if sampled homes just met minimum code requirements. The third stage then calculated the potential energy savings, consumer cost savings, and avoided carbon emissions associated with increased code compliance. Together, these findings provide valuable insight on challenges facing energy code implementation and enforcement, and are intended to inform future energy code education, training and outreach activities. Figure ES.1. Stages of Analysis Applied in the Study At the time of the study, the state energy code was based on the 2009 International Energy Conservation Code (IECC). Following data collection, the state adopted an updated energy code, known as the 2015 v Figure ES.2. Modeled Distribution of Regulated EUI (kBtu/ft 2 /year) in Alabama (2015 AL Code) vii Acknowledgements The following members comprised the Alabama project team: IMT The Institute for Market Transformation is a Washington, DC-based nonprofit founded in 1996. They promote energy efficiency, green building, and environmental protection in the United States and abroad. The prevailing focus of IMT's work is energy efficiency in buildings. Specific activities include technical and market research, policy and program development, and promotion of best practices and knowledge exchange. In particular, IMT aims to strengthen market recognition of the link between buildings' energy efficiency and their financial value. More information on IMT is available at http://www.imt.org/. ADECA The Alabama Department of Economic and Community Affairs was created by the Legislature as an arm of the Governor's Office in 1983. The Legislature established ADECA to streamline the management of a number of programs administered by the state. ADECA is responsible for administering a broad range of state and federal programs that contribute to the department's mission -Building Better Alabama Communities. Find additional information on ADECA at http://adeca.alabama.gov/Pages/default.aspx. IBTS The Institute for Building Technology & Safety is a 501(c)(3) nonprofit organization established to provide unbiased professional building code compliance services directly to, or on behalf of, government agencies at all levels. These services include inspections, plan reviews, building department services, education and training, staff augmentation, policy and procedure development, cost evaluation, energy ratings, and auditing. More information is available at http://www.ibts.org/. Calhoun Community College Calhoun Community College is a technical college located in Decatur, AL, offering 49 associate degree options and 52 career/certificate programs. The Alabama Center for Excellence in Clean Energy Technology at Calhoun Community College offers students and industry professionals training and education in the latest renewable energy and energy efficiency technologies and practices. Cadmus The Cadmus Group, Inc. was founded in 1983 in Watertown, MA. They provide services in the areas of energy, environment, high performance building, sustainability, public health, and strategic communications. See more information on Cadmus at https://www.cadmusgroup.com/. ix Acronyms and Abbreviations AC air conditioning ACH air changes per hour ADECA Alabama Department of Economic and Community Affairs AERC Alabama Energy and Residential Codes Board AL Alabama AFUE annual fuel utilization efficiency AHU air handling unit Btu British thermal unit cfm cubic feet per minute COAA Code Officials Association of Alabama CZ climate zone DOE U.S. Department of Energy EERE Office of Energy Efficiency and Renewable Energy EUI energy use intensity