Bag more insulation sales

come close to or already meet the MEC insulation requirements:

. Califomia

. Connecticut

Florida

Georgia

Idaho

.Indiana

.Iowa

Minnesota

. Montana

North Crolina

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the Clinton Administration's proposed energy tax, building products retailers who stay on top of energyrelated legislation and its opportunities can upgrade their insulation sales ard profis.

Specifically, retail insulation sales can be boosted by playing to the upgraded state energy codes, federally financed homes or home inProvement projects, and energy-efficient mortgages.

Energy Codes

By October 1994, two years after its signing, the National EnergY Policy Act requires each state to report to the Department of Energy that its energy code meets specified standards or explain why no changes are needed.

These standards for residential construction should follow the Model Energy Code (MEC), develoPed bY the Council of American Building Officials (CABO).

To stay ahead of such changes, retailers should learn what the MEC requires for their specific area, and prepare to promote the appropriate insulation products that will help meet upgraded energy codes.

Through recent revisions, 16 states

New Mexico

NorthDakota

. Oregon Tenness@

. Utah

Washinglon

Story at a Glance

lnsulation demand should rise with new energy leglslation retailers can market knowledge of rcvised codes, funding requirements, specialmortgages.

ciency standards.

The legislation requires that the Department of Housing and Urban Development (HuD) upgrade its energy standards for home financing within one year of tbe bill's passage. The MEC autorr,atically goes into effect if HUD misses the ute-yea deadlirp.

In addition, home improvements financed by federal sorces, such as the Veterans Administration (VA) or the Farmers Home Administration (FnHA), may also have to meet upgraded energy requirements, depending on the lender.

Dealers can market this energy code lnowledge and help their customers. By working together with sucb federal agencbs as HUD, rcailers can position tbemselrrcs as energy experts, able o answer which materials are best to meet upgraded energy standards.

Encrgt Efticient Mmtgages

Retailers can frrrth€r upgrade insulation sales through other energy financing requir€ments. Energy efficient mortgages, also ddress€d in lbe energy act, require homebuyers to meet specific energy conservation standads.

In existence for some time, tbe.se mortgages allow homebuyers to trade expected energy savings for tbeir first home mortgage or a bigger mstgage !o buy a beuer home. The National Energy Policy Act p'ropoees standadizing the loan p,rocess and necassary home energy efficiency requiremens to help build a national energy efficientmortgage progrm.

Retailers can then partner with local lenden to s€rve as an information source for bomebuyers who want to quickly meet energy efficiency mortgage requiremens benselves.

Retailers in these states can immediately begin tying heightened state energy code requirements into Oeir merchandising. Unless they can provide documentation that their present codes are sufficient, the remaining states will have to revise their codes as well.

Federal Financing Requirements

The energy act further promotes energy efficiency requiring federally funded construction and remodeling projects to meet upgraded energy effi-

In essence, a little lmowledge of the new legislation can help to promote insulation as an easy and inexpensive way to meet the stricter energy standards.