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UBC Theses and Dissertations

The problem of increasing the energy efficiency in new mass-market housing Weidner, Harv G. 1981

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THE PROBLEM OF INCREASING THE ENERGY EFFICIENCY IN NEW MASS-MARKET HOUSING by HARV G. WEIDNER B.A.(Hon.), The U n i v e r s i t y of R e g i n a , 1978 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n THE FACULTY OF GRADUATE STUDIES S c h o o l of Community and R e g i o n a l P l a n n i n g We a c c e p t t h i s t h e s i s as co n f o r m i n g t o the r e q u i r e d s t a n d a r d THE UNIVERSITY OF BRITISH COLUMBIA October 1981 @ Harv G. Weidner, 1981 In p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f the requirements f o r an advanced degree a t the U n i v e r s i t y o f B r i t i s h Columbia, I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and study. I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e copying of t h i s t h e s i s f o r s c h o l a r l y purposes may be granted by the head o f my department o r by h i s o r her r e p r e s e n t a t i v e s . I t i s understood'that copying or p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be allowed without my w r i t t e n p e r m i s s i o n . Department Of S c h o o l o f Community and R e g i o n a l P l a n n i n g The U n i v e r s i t y o f B r i t i s h Columbia 2075 Wesbrook P l a c e Vancouver, Canada V6T 1W5 Date October 15, 1981 n i ? _ C I O /IQ ^ ABSTRACT T h i s t h e s i s e x p l o r e s energy e f f i c i e n c y i n space h e a t i n g f o r new s i n g l e - f a m i l y detached mass-market houses i n two l o c a t i o n s — R e g i n a , Saskatchewan and Vancouver, B r i t i s h Columbia. The study i s based on the premise t h a t the energy e f f i c i e n c y of new h o u s i n g i s i n s u f f i c i e n t g i v e n i t s l o n g l i f e - s p a n and the u n c e r t a i n t y of f u t u r e energy s u p p l i e s . The study i n v e s t i g a t e s the p r o c e s s by which h o u s i n g consumers, b u i l d e r s , government h o u s i n g programs and r e g u l a t i o n s i n t e r a c t , i n o r d e r t o und e r s t a n d the o b s t a c l e s t o a c h i e v i n g g r e a t e r energy e f f i c i e n c y . Seventeen b u i l d e r s were i n t e r v i e w e d i n Regina and Vancouver t o g e t h e r w i t h a r c h i t e c t s , b u i l d i n g i n s p e c t o r s and o t h e r i n d i v i d u a l s c l o s e l y r e l a t e d t o the h o u s i n g i n d u s t r y . The t h e s i s b e g i n s by o u t l i n i n g the problem and j u s t i f y i n g the method of i n v e s t i g a t i o n . Chapter Two b r i e f l y d e s c r i b e s Canada's energy c o n t e x t , e s t a b l i s h e s a need f o r g r e a t e r energy c o n s e r v a t i o n , and examines government energy e f f i c i e n c y r e g u l a t i o n s and o t h e r i n i t i a t i v e s t o encourage g r e a t e r energy e f f i c i e n c y i n new h o u s i n g . Chapter Three d e s c r i b e s the t e c h n i q u e s a v a i l a b l e t o the mass-market b u i l d e r f o r i m p r o v i n g the energy e f f i c i e n c y , of the b u i l d i n g envelope and b r i e f l y e x p l a i n s some p a s s i v e s o l a r d e s i g n o p t i o n s . Chapter Four r e v i e w s the economics of r e s i d e n t i a l energy c o n s e r v a t i o n from the p e r s p e c t i v e of the consumer. C o s t -e f f e c t i v e n e s s a n a l y s i s and i t s l i m i t a t i o n s a r e d e s c r i b e d and c o s t s and payback p e r i o d s a r e a p p r o x i m a t e d f o r the t e c h n i q u e s d e t a i l e d i n Chapter Three. The c h a p t e r c o n c l u d e s w i t h an account of the economic c o n s t r a i n t s t o i n c r e a s i n g energy e f f i c i e n c y i n new h o u s i n g . Chapter F i v e b r i e f l y e x p l a i n s t h e impo r t a n t a t t i t u n d i n a l and r e g u l a t o r y b a r r i e r s t o energy e f f i c i e n t h o u s i n g . Chapter S i x examines the energy e f f i c i e n c y s t a n d a r d s of the b u i l d e r s i n t e r v i e w e d , t h e i r responses t o key q u e s t i o n s , and d i s c u s s e s the major i s s u e s t h a t a r o s e from the i n t e r v i e w s . The f i n a l c h a p t e r o u t l i n e s the major f i n d i n g s of the t h e s i s , and on t h i s b a s i s a t t e m p t s t o j u s t i f y government i n t e r v e n t i o n t o overcome the market i n a d e q u a c i e s uncovered i n the i n v e s t i g a t i o n . The s t u d y found t h a t i n the absence of s t r i c t government r e g u l a t i o n of energy e f f i c i e n c y s t a n d a r d s i n the h o u s i n g i n d u s t r y , b u i l d e r s have b u i l t t o s t a n d a r d s r e f l e c t i n g consumer p r e f e r e n c e s and awareness of energy e f f i c i e n c y which have been i n f l u e n c e d by energy p r i c e s , government i n f o r m a t i o n programs and c l i m a t e . R e g i o n a l v a r i a t i o n were en c o u n t e r e d i n t h a t consumer demand was a weaker f a c t o r i n Vancouver w h i l e a more severe c l i m a t e and more a c t i v e government p a r t i c i p a t i o n i n Regina has c r e a t e d a g r e a t e r energy c o n s c i o u s n e s s among consumers and b u i l d e r s . C e r t a i n b u i l d e r s i n each l o c a t i o n were r e s p o n d i n g t o an i n c r e a s e d energy awareness by b u i l d i n g t o h i g h e r s t a n d a r d s than those p r e v a l e n t i n the market, t h u s a c t i n g t o d i r e c t f u t u r e consumer demand. The s t u d y uncovered s e v e r a l market i n a d e q u a c i e s , economic c o n s t r a i n t s , s o c i a l and a t t i t u d i n a l r e s i s t a n c e s , and government p o l i c y s h o r t c o m i n g s c u r r e n t l y i n h i b i t i n g . g r e a t e r energy e f f i c i e n c y ; among them: IV 1. The v a l u e of energy c o n s e r v i n g f e a t u r e s does not appear t o be r e c o g n i z e d i n the r e s a l e h o u s i n g market. 2. P r o j e c t e d p e r i o d s of ownership f o r new home p u r c h a s e r s a r e l e s s than f i v e y e a r s and i n the absence of proven r e s a l e v a l u e these p u r c h a s e r s a re dependent on r e c o v e r y of energy c o n s e r v i n g investment through energy s a v i n g s w i t h i n t h i s s h o r t p e r i o d . 3. S t r i c t government r e g u l a t i o n of energy e f f i c i e n c y has been absent or so l a x as t o be an i n s i g n i f i c a n t f a c t o r i n r a i s i n g energy e f f i c i e n c y s t a n d a r d s . 4. The two d e t e r m i n a n t s of h o u s i n g energy e f f i c i e n c y , b u i l d e r s and consumers, a r e l a c k i n g i n f o r m a t i o n on energy c o n s e r v i n g t e c h n i q u e s and investment r e q u i r e d t o make inf o r m e d c h o i c e s . These problems, the s p e c i a l n a t u r e and l o n g l i f e - s p a n of r e s i d e n t i a l b u i l d i n g s , the consequent broader s o c i a l w e l f a r e g o a l s t o be a c h i e v e d by c o n s e r v i n g an e s s e n t i a l r e s o u r c e , and the need t o p r o t e c t the economic i n t e r e s t s of f u t u r e homeowners, make the energy e f f i c i e n c y of new h o u s i n g a s p e c i a l c a s e . As a r e s u l t , the study argues t h a t t h e r e i s j u s t i f i c a t i o n f o r a comprehensive program of government i n t e r v e n t i o n . V TABLE OF CONTENTS A b s t r a c t i i L i s t of T a b l e s x Acknowledgements x i CHAPTER 1 : INTRODUCTION .... 1 1.0 Statement Of The Problem 1 1.0.1 Focus Of The T h e s i s : I n c r e a s i n g The Energy E f f i c i e n c y Of New Housing . -2 a. Resource A l l o c a t i o n i n a Market Economy 2 b. Energy P r i c i n g 3 c. The I n s t i t u t i o n a l B a r r i e r s 4 1.1 Study O b j e c t i v e s 5 1.2 Approach 5 1.2.1 Study P e r s p e c t i v e 5 1.2.2 Method Of I n v e s t i g a t i o n 6 1.3 Scope And L i m i t a t i o n s 8 1.3.1 U n i t E f f i c i e n c y V e r s u s Land Use Design 8 1.3.2 R a t i o n a l e For Focus On S i n g l e - D e t a c h e d 8 1.3.3 Energy Uses In The R e s i d e n t i a l S e c t o r 9 1.3.4 Energy C o n s e r v i n g Techniques Examined 9 CHAPTER 2: THE CANADIAN ENERGY CONTEXT: PROBLEMS AND OPPORTUNITIES 11 2.0 I n t r o d u c t i o n 11 2.1 Canada's Energy Supply 11 2.1.1 P a s t Responses 11 2.1.2 C u r r e n t F o r e c a s t s 13 v i 2.2 Energy C o n s e r v a t i o n As A S o l u t i o n 15 2.3 R e s i d e n t i a l Use C o m p o n e n t — N a t i o n a l Energy Budget .. 17 2.4 Government Energy E f f i c i e n c y R e g u l a t i o n s 18 2.5 The N a t i o n a l Energy P r o g r a m — R e s i d e n t i a l S e c t o r .... 23 2.6 I n i t i a t i v e s To I n c r e a s e Energy E f f i c i e n c y 25 2.6.1 P r o v i n c i a l Government 25 2.6.2 M u n i c i p a l Government 28 2.6.3 Other I n i t i a t i v e s 28 2.7 P o t e n t i a l Impact Of I n c r e a s e d C o n s e r v a t i o n 29 CHAPTER 3: TECHNIQUES AND CONSIDERATIONS IN REDUCING SPACE .'HEATING REQUIREMENTS 31 3.0 I n t r o d u c t i o n 3 1 3.1 C o n s t r u c t i o n Techniques 32 3.1.1 I n s u l a t i o n . 32 3.1.2 Windows And Doors 33 3 . 1 . 3 A i r-vapour. B a r r i e r s 35 3.2 Energy E f f i c i e n t H e a t i n g S y s t e m s — F u r n a c e s And F i r e p l a c e s 38 3.3 P a s s i v e S o l a r D e s i g n 40 CHAPTER 4: ECONOMIC CONSIDERATIONS AND CONSTRAINTS TO INCREASING ENERGY EFFICIENCY 43 4.0 I n t r o d u c t i o n — D i s t r i b u t i o n Of C o s t s And B e n e f i t s ... 43 4.1 Me a s u r i n g Economic E f f i c i e n c y 44 4.1.1 L i m i t a t i o n s To Economic A n a l y s i s 44 4.1.2 Methods Of C a l c u l a t i n g C o s t - e f f e c t i v e n e s s 45 a. Monthly O p e r a t i n g C o s t s 46 b. Payback P e r i o d 47 4.1.3 The C o s t s Of Energy S a v i n g Techniques 47 v i i 4.1.4 D i s c o u n t e d Payback P e r i o d s Of Techniques ....... 52 a. L i m i t a t i o n s of Payback A n a l y s i s 52 b. Payback P e r i o d s 53 4.1.5 V a r i a b i l i t y Of Payback F o r e c a s t s 54 4.2 Economic C o n s t r a i n t s 55 4.2.1 A f f o r d a b i l i t y 55 4.2.2 Length Of Home O w n e r s h i p — T i m e H o r i z o n 56 4.2.3 A p p r a i s i n g Energy E f f i c i e n t Housing 57 4.2.4 Energy P r i c i n g 59 CHAPTER 5: THE SOCIAL AND INSTITUTIONAL BARRIERS 60 5.0 I n t r o d u c t i o n 60 5.1 The S o c i a l And A t t i t u d i n a l B a r r i e r s ' 60 5.1.1 A e s t h e t i c Appeal Of The Home . 61 5.1.2 Energy Awareness And Housing U n i t O p e r a t i o n ... 62 5.1.3 Energy Awareness Of Housing D e s i g n e r s 63 5.2.The I n s t i t u t i o n a l And R e g u l a t o r y B a r r i e r s 64 5.2.1 B u i l d i n g Codes 65 5.2.2 Zoning - Development C o n t r o l Bylaws 66 5.2.3 A d d i t i o n a l I n s t i t u t i o n a l And P e r c e p t u a l B a r r i e r s 67 5.3 C o n c l u s i o n 68 CHAPTER 6: PROBLEMS OF INCREASING ENERGY EFFICIENCY FROM THE BUILDER'S PERSPECTIVE 69 6.0 I n t r o d u c t i o n 69 6.1 R e c o g n i t i o n Of The Energy Problem 70 6.2 Emphasis On Energy E f f i c i e n c y 73 6.2.1 S t a n d a r d s Of B u i l d e r s I n t e r v i e w e d 73 a. Vancouver 73 v i i i b. Regina 75 c. V a r i a t i o n s between Vancouver and Regina 78 6.2.2 Awareness Of Energy Consumption . . 7 9 6.2.3 C u r r e n t Impact On De s i g n 81 6.2.4 M o t i v e s For I n c r e a s i n g E f f i c i e n c y S t a n d a r d s ... 84 6.3 Knowledge Of Energy C o n s e r v a t i o n Techniques And A s s o c i a t e d Problems 89 6.3.1 C o n s t r u c t i o n M a t e r i a l s And Methods 89 a. I n s u l a t i o n 90 b. A i r - v a p o u r B a r r i e r 90 c. Knowledge of Other Techniques . 9 2 6.3.2 P a s s i v e S o l a r D e s i g n .. 93 6.3.3 C o n s t r u c t i o n Problems Encountered 95 a. F u t u r e C o n s t r u c t i o n Problems 96 6.3.4 Saskatchewan Home Energy Loan Program 97 6.3.5 A l t e r n a t i v e s To A i d D i f f u s i o n Of Techniques ... 99 a. L i t e r a t u r e , Workshops and D e m o n s t r a t i o n P r o j e c t s 99 b. Other Methods ...100 6.4 M a r k e t a b i l i t y Of Energy C o n s e r v a t i o n 102 6.4.1 E x t e n t Of B u i l d e r M a r k e t i n g 102 6.4.2 R e a c t i o n Of The Housing Consumer 103 6.4.3 D i f f e r e n c e s Among T a r g e t Markets 104 6.5 C o n c l u s i o n 107 CHAPTER 7: SUMMARY AND CONCLUSIONS 110 7.0 I n t r o d u c t i o n : The Problem R e s t a t e d 110 7.1 The Major F i n d i n g s 111 7.2 J u s t i f i c a t i o n For Government I n t e r v e n t i o n 113 i x 7.3 I m p l i c a t i o n s For F u t u r e P o l i c y 114 7.3.1 Energy P r i c i n g 115 7.3.2 R e g u l a t i o n ..116 7.3.3 I n f o r m a t i o n .117 7.3.4 I n c e n t i v e s 118 7.4 Areas For A d d i t i o n a l Research 119 REFERENCES 121 OTHER SOURCES 126 APPENDIX 1--QUESTIONNAIRE .127 APPENDIX 2 — FINDINGS - BUILDER INTERVIEWS ....130 X LIST OF TABLES Tab l e 2.1 CMHC Energy E f f i c i e n c y Standards (Vancouver) .... 21 Ta b l e 2.2 CMHC Energy E f f i c i e n c y S t a n d a r d s (Regina) 22 Tabl e 2.3 Saskatchewan Home Energy Loan Program E f f i c i e n c y S t a n d a r d s 27 Ta b l e 4.1 Average C o s t s And Payback P e r i o d s Of The Techniques . 51 Ta b l e 6.1 Energy E f f i c i e n c y S t a n d a r d s Of The Vancouver B u i l d e r s 74 Tabl e 6.2 Energy E f f i c i e n c y S tandards Of The Regina B u i l d e r s 7'.°. . 77 Tabl e 6.3 Responses Of The Vancouver B u i l d e r s To Key Q u e s t i o n s 87 Tabl e 6.4 Responses Of The Regina B u i l d e r s To Key Q u e s t i o n s 88 ACKNOWLEDGEMENTS I convey my s i n c e r e thanks t o a l l those who i n some way c o n t r i b u t e d t o the p r o d u c t i o n of t h i s t h e s i s , i n p a r t i c u l a r , t o my t h e s i s a d v i s o r s , Brahm Wiesman, and Ray Co l e of the Sc h o o l of A r c h i t e c t u r e , U.B.C. f o r t h e i r a d v i c e and a s s i s t a n c e . A s p e c i a l thanks i s extended t o the b u i l d e r s who were generous enough t o submit themselves t o a r a t h e r l e n g t h y i n t e r v i e w , and t o CMHC, f o r t h e i r f i n a n c i a l h e l p . I would l i k e t o thank L i n d a Jacobsen f o r her time and p a t i e n c e i n t y p i n g the o r i g i n a l d r a f t . F i n a l l y , I would l i k e t o thank my mother and f a m i l y f o r t h e i r encouragement, and a former mentor, Edmund D a l e , of the Department of Geography, U n i v e r s i t y of Regina f o r h e l p i n g persuade me t o f u r t h e r my e d u c a t i o n . 1 CHAPTER 1: INTRODUCTION 1.0 STATEMENT OF THE PROBLEM Perhaps no o t h e r peace-time event s i n c e the Great D e p r e s s i o n of the 1930's has shaken the w o r l d economy so p r o f o u n d l y as the 1973 Arab o i l embargo and the subsequent e s c a l a t i o n of energy p r i c e s . P r i o r t o t h i s d a t e , o i l i m p o r t i n g c o u n t r i e s , i n c l u d i n g Canada, had e v o l v e d economies and adopted l i f e s t y l e s which depended almost e n t i r e l y on cheap and abundant p e t r o l e u m p r o d u c t s . 1 The 1973 embargo announced the b e g i n n i n g of a new e r a of energy awareness d u r i n g which the r a t i o n a l i t y of r e l y i n g on a r a p i d l y d e p l e t i n g r e s o u r c e t o f u e l such uses as energy i n t e n s i v e t r a n s p o r t a t i o n systems, h i g h l y mechanized and energy dependent a g r i c u l t u r e and energy i n e f f i c i e n t b u i l d i n g s , was s e r i o u s l y q u e s t i o n e d . The l o n g - t e r m i m p l i c a t i o n s of investment i n energy i n e f f i c i e n t i n f r a s t r u c t u r e was c l e a r l y r e v e a l e d . 1 I t s h o u l d be noted t h a t i n 1973 Canada was a net e x p o r t e r of o i l , but owing t o the geo g r a p h i c p o s i t i o n of i t s major o i l r e s e r v e s i n the west, and a l a c k of a d i s t r i b u t i o n system p a s t T o r o n t o , a l a r g e p o r t i o n of E a s t e r n Canada was, and s t i l l i s dependent on imported o i l . 2 1 . 0 . 1 Focus Of The T h e s i s : I n c r e a s i n g The Energy E f f i c i e n c y Of  New Housing a. Resource A l l o c a t i o n In A Market Economy , Under our c u r r e n t economic system, r e s o u r c e s a r e a l l o c a t e d p r i m a r i l y t h r o u g h the market .mechanism s u b j e c t t o government r e g u l a t i o n s . In t h e o r y , t h i s system uses p r i c e as a s i g n a l t o r e f l e c t the s u p p l y and demand of a r e s o u r c e and d i s t r i b u t e s t h a t r e s o u r c e i n a e c o n o m i c a l l y o p t i m a l way. Market a l l o c a t i o n a l s o o p e r a t e s i n the r e s i d e n t i a l s e c t o r where h o u s i n g consumers and b u i l d e r s , c o n s c i o u s l y or u n c o n s c i o u s l y , make d e c i s i o n s which d i c t a t e the amount of energy which w i l l be consumed r e l a t i v e t o o t h e r r e s o u r c e s , i n the c o n s t r u c t i o n a n d , o p e r a t i o n of the home. The i d e a l t r a d e - o f f from a s o c i a l p e r s p e c t i v e i s one between expending funds i n i t i a l l y on r e s o u r c e s such as i n s u l a t i o n or a d d i t i o n a l l a b o u r , or on i n c r e a s e d energy consumption over the l i f e of the home. The u n d e r l y i n g problem i s t h a t the above t r a d e - o f f , i f c o n s i d e r e d a t a l l , i s u s u a l l y based not on l i f e -time energy consumption, but on whether the home owner w i l l r e c a p t u r e h i s i n i t i a l i n v e s t m e n t i n energy c o n s e r v i n g f e a t u r e s d u r i n g the p e r i o d he. p l a n s t o own the home. The r e c o v e r y of t h i s c a p i t a l i s c o n s i d e r e d n e c e s s a r y because the i n c r e m e n t a l v a l u e of energy e f f i c i e n c y has not been c l e a r l y e s t a b l i s h e d i n the r e s a l e market. The m a j o r i t y of buyers make t h e i r d e c i s i o n s based on the b e l i e f t h a t they w i l l own the home"for o n l y a r e l a t i v e l y s h o r t p e r i o d of time ( t h r e e t o f i v e y e a r s f o r a f i r s t - t i m e buyer, HUDAC, O n t a r i o M i n i s t r y of Energy, p . 5 ) . The consumption of 3 energy appears i n s i g n i f i c a n t when viewed a g a i n s t the i n i t i a l c a p i t a l c o s t s over t h i s p e r i o d . Thus the d e c i s i o n t h a t i s i n the best i n t e r e s t s of the s h o r t - t e r m home owner ( p r i v a t e i nvestment i n energy c o n s e r v i n g f e a t u r e s m i n i m i z e d ) , i n c r e a s e s the c o s t s t o s o c i e t y because of the g r e a t e r energy r e q u i r e m e n t s over 50 t o 100 y e a r s of o p e r a t i o n . Of c o u r s e the a c t u a l d e c i s i o n p r o c e s s i s never c l e a r - c u t . Many u n c e r t a i n t i e s and r e a l w o r l d problems d i s t o r t the f i n a l c h o i c e t o the e x t e n t t h a t i t may no l o n g e r be made on a r a t i o n a l economic b a s i s . The economic u n c e r t a i n t i e s i n v o l v e c u r r e n t and ex p e c t e d energy p r i c e s , i n t e r e s t r a t e s , the p e r c e p t i o n or a c t u a l measure of d o l l a r s a v i n g s , and the p r o j e c t e d l e n g t h of home ownership. Beyond these p u r e l y economic pa r a m e t e r s , any number of s o c i a l and l i f e s t y l e i n f l u e n c e s c o u l d a c t upon the f i n a l d e c i s i o n t o i n v e s t i n an energy c o n s e r v i n g f e a t u r e . Y e t , the economics l i e a t the h e a r t of the v a s t m a j o r i t y of d e c i s i o n s t o i n c r e a s e the energy e f f i c i e n c y i n new h o u s i n g . b. Energy P r i c i n g A second c o n s t r a i n t a d v e r s e l y a f f e c t i n g the a b i l i t y of the market t o a l l o c a t e energy r e s o u r c e s i n an o p t i m a l way i s energy p r i c i n g . C u r r e n t l y , p r i c e s of n a t u r a l gas, e l e c t r i c i t y , and p a r t i c u l a r i l y o i l , a r e below t h e i r t r u e economic, or replacement c o s t . 2 The t r u e s o c i a l c o s t of thes e r e s o u r c e s would r e f l e c t the 2A r e c e n t agreement reached i n a d i s p u t e over energy p r i c i n g and t a x a t i o n between Ottawa and A l b e r t a w i l l i n s t i t u t e s u b s t a n t i a l l y h i g h e r energy p r i c e s f o r a l l p e t r o l e u m f u e l s i n Canada. However time c o n s t r a i n t s d i d not a l l o w an assessment of i t s impact on t h i s s t u d y . 4 t o t a l c o s t of t h e i r r e c o v e r y , t r a n s p o r t a t i o n from t h e i r most r e c e n t or " m a r g i n a l " s o u r c e s , 3 and the a s s o c i a t e d e n v i r o n m e n t a l c o s t s . Under these c i r c u m s t a n c e s , the market would be r e c e i v i n g a c c u r a t e economic s i g n a l s and investment i n energy e f f i c i e n c y measures would i n c r e a s e . Y e t , i n a p e r i o d of i n f l a t i o n and r a p i d i l y r i s i n g energy p r i c e s , the d e c i s i o n on investment i n energy c o n s e r v a t i o n cannot be o p t i m a l . The o p t i m a l d e c i s i o n would r e q u i r e p e r f e c t knowledge of the p r i c e of energy over the l i f e t i m e of the house. N e v e r t h e l e s s , i f energy, were p r i c e d a t i t s c u r r e n t replacement c o s t s , investment i n energy c o n s e r v i n g f e a t u r e s would at l e a s t be c l o s e r t o the o p t i m a l l e v e l i n i t i a l l y . c. The I n s t i t u t i o n a l B a r r i e r s A l t h o u g h the most fundamental problem i n the f i e l d of r e s i d e n t i a l energy c o n s e r v a t i o n i s economic, the need f o r h i g h e r r e s i d e n t i a l energy e f f i c i e n c y has o n l y r e c e n t l y been r e c o g n i z e d . R e g u l a t o r y a g e n c i e s i n the h o u s i n g f i e l d have ye t t o respond t o the r e q u i r e d change. A d d i t i o n a l l y , p u b l i c a t t i t u d e s have been shaped by y e a r s of energy w a s t e f u l n e s s and now the need f o r g r e a t e r energy c o n s e r v a t i o n w i l l t a k e time as the e n t r e n c h e d s o c i a l v a l u e s a r e a l t e r e d . Hence t h e r e are i n h e r e n t r e s i s t a n c e s w i t h i n p u b l i c i n s t i t u t i o n s and a t t i t u d e s which must be overcome s i m u l t a n e o u s l y w i t h the economic b a r r i e r s d e s c r i b e d above. 3The A l b e r t a t a r sands c o u l d be c o n s i d e r e d t o be the most r e c e n t s o u r c e of o i l i n Canada. 5 1 . 1 STUDY OBJECTIVES The premise of the study i s t h a t the p r e s e n t . l e v e l of energy e f f i c i e n c y i n new Canadian h o u s i n g i s too low, and the. r a t e of i n c r e a s e i s i n s u f f i c i e n t . To determine i t s . v a l i d i t y , and recommend a c t i o n s f o r overcoming these problems, s e v e r a l key o b j e c t i v e s can be i d e n t i f i e d : 1 . To un d e r s t a n d the p r o c e s s by which b u i l d e r s , h o u s i n g consumers and government r e g u l a t o r y b o d i e s i n t e r a c t t o produce the f i n a l form, f e a t u r e s and consequent energy e f f i c i e n c y of housing.. 2 . To determine the c u r r e n t l e v e l of energy awareness among mass-market house b u i l d e r s and t h e i r energy e f f i c i e n c y s t a n d a r d s . 3. To d i s c o v e r r e c e n t changes i n the b u i l d e r s ' awareness of the need f o r energy c o n s e r v a t i o n , changes •• i n b u i l d i n g s t a n d a r d s and the reasons b e h i n d t h e s e changes. 4. To determine the c o s t s i n v o l v e d i n i n c r e a s i n g energy e f f i c i e n c y and the c u r r e n t , and p r o b a b l e f u t u r e problems i n d e s i g n , c o n s t r u c t i o n , and m a r k e t i n g of c o n s e r v a t i o n f e a t u r e s . 5 . To p r o v i d e a b a s i c u n d e r s t a n d i n g of the economics which p l a y a major r o l e i n the d e c i s i o n s t o i n v e s t i n . energy c o n s e r v i n g f e a t u r e s . 6 . To a s s e s s the i n f l u e n c e s t h a t v a r y i n g c l i m a t e and h o u s i n g markets, have on the d i f f u s i o n and a d o p t i o n of energy c o n s e r v a t i o n p r a c t i c e s i n the house b u i l d i n g i n d u s t r y . 1 . 2 APPROACH 1 . 2 . 1 Study P e r s p e c t i v e The i n t e r a c t i o n p r o c e s s o c c u r r i n g i n the h o u s i n g market can be examined from s e v e r a l d i f f e r e n t p e r s p e c t i v e s , c o r r e s p o n d i n g t o the t h r e e p a r t i c i p a n t s - b u i l d e r s , consumers and government. 6 In the mass-market, b u i l d e r s , o p e r a t i n g under b u i l d i n g codes, z o n i n g r e g u l a t i o n s and o t h e r government r e q u i r m e n t s , respond t o consumer d e s i r e s f o r c e r t a i n h o u s i n g t y p e s , f e a t u r e s , and l o c a t i o n s . Both consumer demand and government r e g u l a t i o n r e f l e c t the p r e v a i l i n g s o c i a l a t t i t u d e s and l i f e s t l y e s . The b u i l d e r responds t o the s e s i g n a l s by. t r a n s l a t i n g them i n t o s e v e r a l " s t o c k p l a n s " which he f e e l s w i l l be m a r k e t a b l e and have the g r e a t e s t p r o f i t a b i l i t y . The f o c u s of the study w i l l be on the d e v e l o p e r / b u i l d e r as the c e n t r a l a c t o r i n the p r o c e s s which r e s u l t s i n the f i n a l form, f e a t u r e s and energy e f f i c i e n c y of new h o u s i n g . 1.2.2 Method Of I n v e s t i g a t i o n The i n f o r m a t i o n r e q u i r e d t o i n v e s t i g a t e the problem can be d i v i d e d i n t o f i v e s e c t i o n s : 1. background i n f o r m a t i o n on the wider energy c o n t e x t , 2. i n f o r m a t i o n on energy c o n s e r v a t i o n t e c h n i q u e s i n d e s i g n and c o n s t u c t i o n , 3. d a t a on the economics of energy c o n s e r v a t i o n , 4. i n f o r m a t i o n on the economic and i n s t i t u t i o n a l b a r r i e r s and, • 5. a t t i t u d e s and knowledge of b u i l d e r s r e g a r d i n g energy e f f i c i e n c y i n h o u s i n g . The major p o r t i o n of the i n f o r m a t i o n r e q u i r e d was c o l l e c t e d from p e r s o n a l i n t e r v i e w s w i t h 17 house b u i l d e r s . Because the b u i l d e r s ' knowledge, s o p h i s t i c a t i o n , p e r c e p t i o n of the energy problem, and t h e i r c a p a c i t y t o d e a l w i t h changes of the k i n d r e q u i r e d t o d e s i g n , c o n s t r u c t and market more energy e f f i c i e n t h o u s i n g c o u l d be a f u n c t i o n of f i r m s i z e , i n t e r v i e w s were conducted w i t h a wide range of s m a l l , medium and l a r g e f i r m s . The e m p i r i c a l p o r t i o n of the i n v e s t i g a t i o n was conducted i n two l o c a t i o n s , Regina and Vancouver f o r these reasons:. 7 1. The o b j e c t i v e of the study was t o g a i n p r a c t i c a l i n s i g h t s t o a i d the f o r m u l a t i o n of a n a t i o n a l s t r a t e g y t o a c c e l e r a t e the d i f f u s i o n of energy e f f i c i e n t h o u s i n g . T h i s n e c e s s i t a t e d an i n v e s t i g a t i o n i n t o the p o s s i b l e r e g i o n a l v a r i a t i o n s i n the l e v e l s of energy e f f i c i e n c y i n h o u s i n g , b u i l d e r awareness, i n f l u e n c e of the ho u s i n g market, and h o u s i n g p r i c e . 2. C l i m a t e w i l l i n f l u e n c e the p e r c e p t i o n of a need f o r energy e f f i c i e n c y by h o u s i n g consumers. O b v i o u s l y , c o l d e r c l i m a t e s w a rrant more investment i n energy c o n s e r v i n g f e a t u r e s than do m i l d c l i m a t e s , and hence, the c l i m a t e of d i f f e r e n t Canadian r e g i o n s s h o u l d have a s i g n i f i c a n t i n f l u e n c e on c u r r e n t s t a n d a r d s and the r a t e of d i f f u s i o n . The study a r e a s chosen p r e s e n t almost i d e a l c i r c u m s t a n c e s f o r i n v e s t i g a t i n g both of the f o r e g o i n g i n f l u e n c e s : 1. The c l i m a t i c v a r i a t i o n between Regina and Vancouver i s near the most extreme t o be found i n Canada. 2. The h o u s i n g market c o n d i t i o n s and h o u s i n g p r i c e s a r e e q u a l l y d i v e r s e - Regina's h o u s i n g market r e c o v e r i n g from a two year slump, Vancouver's s t a g n a t e a f t e r two y e a r s of f u r i o u s s a l e s and r a p i d p r i c e e s c a l a t i o n . A d d i t i o n a l p r i m a r y d a t a were c o l l e c t e d t h rough i n t e r v i e w s w i t h a r c h i t e c t s , b u i l d i n g i n s p e c t o r s , energy e f f i c i e n c y s p e c i a l i s t s , and o t h e r knowledgeable i n d i v i d u a l s i n the ho u s i n g f i e l d . Secondary i n f o r m a t i o n was g a t h e r e d from the l i t e r a t u r e d e s c r i b i n g t he g e n e r a l b a r r i e r s and problems c u r r e n t l y h i n d e r i n g a d o p t i o n of energy c o n s e r v a t i o n i n the U.S. r e s i d e n t i a l s e c t o r , p u b l i c a t i o n s by HUDAC and CMHC d e s c r i b i n g the t e c h n i q u e s , c o s t s and b e n e f i t s of energy s a v i n g d e s i g n and c o n s t r u c t i o n , and o t h e r 8 l i t e r a t u r e on energy c o n s e r v a t i o n . 1.3 SCOPE AND LIMITATIONS 1.3.1 U n i t E f f i c i e n c y V e r s u s Land Use Design A c h i e v i n g a comprehensive energy e f f i c i e n t r e s i d e n t i a l development i n v o l v e s two c r i t i c a l c o n s i d e r a t i o n s — t h e s i t e l a y o u t or s u b d i v i s i o n d e s i g n , and the d e s i g n and c o n s t r u c t i o n of the h o u s i n g u n i t . T h i s s t u d y c o n c e n t r a t e s on energy c o n s e r v a t i o n i n the d e s i g n and c o n s t r u c t i o n of the ho u s i n g u n i t under the assumption t h a t the r o u t e t o energy e f f i c i e n t r e s i d e n t i a l development may be best i n i t i a t e d b y. f i r s t i n c r e a s i n g the energy e f f i c i e n c y a t the u n i t l e v e l . 1.3.2 R a t i o n a l e For Focus On S i n g l e - D e t a c h e d Of a l l h o u s i n g t y p e s c u r r e n t l y b e i n g c o n s t r u c t e d i n Canada, the s i n g l e - f a m i l y detached home i s the l e a s t energy e f f i c i e n t . 0 Yet i n 1980, 55 p e r c e n t of h o u s i n g s t a r t s i n Canada were f o r s i n g l e - f a m i l y d e t a c h e d . The f i g u r e s f o r B r i t i s h Columbia and Saskatchewan r e v e a l a s l i g h t l y h i g h e r p e r c e n t a g e of detached house s t a r t s — 6 0 and 59 p e r c e n t r e s p e c t i v e l y . Given the c o n t i n u e d p o p u l a r i t y of t h i s h o u s i n g s t y l e , and i t s i n h e r e n t energy i n e f f i c i e n c y , i t i s the most o b v i o u s t a r g e t f o r a study " T h i s i s a consequence of the deta c h e d home h a v i n g the l a r g e s t p r o p o r t i o n of e x t e r i o r w a l l a r e a per square f o o t of f l o o r a r e a of any h o u s i n g t y p e . Hence, a i l s i d e s of the de t a c h e d u n i t a r e f u l l y exposed t o c o l d e x t e r i o r a i r . A t w o - s t o r e y s i n g l e -d e t a c h e d home would r e q u i r e o n l y 86 p e r c e n t of the energy needed to heat a s i n g l e - s t o r e y home of the same h a b i t a b l e f l o o r a r e a , w h i l e a row-house would r e q u i r e 67 p e r c e n t (HUDAC, O n t a r i o M i n i s t r y of Energy, p.12). 9 of the p r o c e s s of i n c r e a s i n g energy e f f i c i e n c y i n h o u s i n g . 1.3.3 Energy Uses In The R e s i d e n t i a l S e c t o r There a r e t h r e e p o t e n t i a l a r e a s f o r energy s a v i n g s i n the h o u s i n g u n i t - space h e a t i n g , hot water h e a t i n g and e l e c t r i c a l use f o r a p p l i a n c e s , a i r c o n d i t i o n i n g and l i g h t i n g . However, by f a r the l a r g e s t energy s a v i n g s can be o b t a i n e d i n space h e a t i n g . The study w i l l t h e r e f o r e be l i m i t e d t o c o n s i d e r i n g energy e f f i c i e n c y improvements i n the t h e r m a l envelope of the b u i l d i n g p r o d u c i n g energy s a v i n g s i n space h e a t i n g . 1.3.4 Energy C o n s e r v i n g Techniques Examined Acknowledging the c u r r e n t stage of the Canadian house-, b u i l d i n g i n d u s t r y i n the p r o v i s i o n of energy e f f i c i e n t h o u s i n g , i t was c o n s i d e r e d most p r a c t i c a l t o l i m i t the scope of t h i s s t udy t o c o n v e n t i o n a l energy c o n s e r v i n g c o n s t r u c t i o n t e c h n i q u e s . Energy e f f i c i e n t d e s i g n , i n c o r p o r a t i n g p a s s i v e s o l a r a s p e c t s , i s most e f f e c t i v e when the b a s i c c o n s t r u c t i o n f e a t u r e s such as i n s u l a t i o n and a i r - t i g h t n e s s have been s u b s t a n t i a l l y improved. P a s s i v e s o l a r d e s i g n w i l l be e x p l o r e d b r i e f l y as the next s t e p i n r e d u c i n g the consumption of c o n v e n t i o n a l f u e l s . The study w i l l not attempt t o examine o t h e r renewable energy s o u r c e s such as a c t i v e s o l a r , wood or more e x o t i c forms such as wind energy. The f o l l o w i n g c h a p t e r o u t l i n e s Canada's energy c o n t e x t , a s s e s s e s the need f o r g r e a t e r energy c o n s e r v a t i o n , examines government r e g u l a t i o n of energy e f f i c i e n c y i n h o u s i n g and r e c e n t i n t i t a t i v e s t o i n c r e a s e energy e f f i c i e n c y s t a n d a r d s . Chapter 3 d e s c r i b e s the t e c h n i q u e s a v a i l a b l e t o the mass-market b u i l d e r 1 0 f o r i m p r o v i n g the energy e f f i c i e n c y of the b u i l d i n g e n v e l o p e . Chapter 4 p r o v i d e s a b a s i c u n d e r s t a n d i n g of c o s t - e f f e c t i v e n e s s a n a l y s i s , and a p p r o x i m a t e s the c o s t s and payback p e r i o d s f o r the t e c h n i q u e s i n t r o d u c e d i n Chapter 3. The Chapter c o n c l u d e s w i t h an account of the economic c o n s t r a i n t s t o i n c r e a s i n g energy e f f i c i e n c y . Chapter 5 e x p l a i n s the i m p o r t a n t a t t i t u d i n a l and r e g u l a t o r y b a r r i e r s t o energy e f f i c i e n t h o u s i n g . Chapter 6 d i s c u s s e s the i s s u e s t h a t a r o s e from the b u i l d e r i n t e r v i e w s and t h e i r i m p l i c a t i o n s , w h i l e the l a s t c h a p t e r summarizes the finding-s and makes s u g g e s t i o n s f o r r e s o l v i n g the problem. 11 CHAPTER 2: THE CANADIAN ENERGY CONTEXT: PROBLEMS AND OPPORTUNITIES 2.0 INTRODUCTION Geography, c l i m a t e , and a h i g h l e v e l of i n d u s t r i a l i z a t i o n have combined t o make Canada the h i g h e s t per c a p i t a consumer of energy i n the w o r l d . Y e t , Canada's g e o l o g i c a l h e r i t a g e had p r o v i d e d i t w i t h many energy r e s o u r c e s t o meet the c h a l l e n g e s imposed by c o l d w i n t e r s , v a s t d i s t a n c e s , and energy i n t e n s i v e i n d u s t r y . D e s p i t e the s e r i o u s n e s s of the energy problem on a g l o b a l b a s i s , Canada remains r e l a t i v e l y f o r t u n a t e because of i t s abundant r e s e r v e s of n a t u r a l . gas, c o a l , and uranium, and the p o t e n t i a l of the t a r sands and f r o n t i e r r e g i o n s t o y i e l d a d d i t i o n a l s u p p l i e s of o i l and n a t u r a l gas t o r e p l a c e d e p l e t i n g A l b e r t a r e s e r v e s . In a d d i t i o n , many a r e a s of the c o u n t r y have h y d r o - e l e c t r i c p o t e n t i a l . Other energy s o u r c e s , y e t t o be f u l l y e x p l o i t e d , i n c l u d e t i d a l power, geothermal and energy from biomass. 2.1 CANADA'S ENERGY SUPPLY 2.1.1 P a s t Responses In the e r a of apparent energy abundance and s t a b l e energy p r i c e s , Government and the g e n e r a l p u b l i c were e a s i l y l u l l e d i n t o a complacent mood, c o n t e n t w i t h r e p o r t s t h a t Canada was energy r i c h , w i t h r e s e r v e s s u f f i c i e n t f o r s e v e r a l hundred y e a r s of consumption. Such views were advanced and s u p p o r t e d by the 1 2 Canadian P e t r o l e u m A s s o c i a t i o n ( C P . A . ) , an o r g a n i z a t i o n of p r i v a t e p e t r o l e u m f i r m s , and the N a t i o n a l Energy Board (N.E.B.). In 1971, Canadians were in f o r m e d by t h e i r M i n i s t e r of Energy, Mines and Resources t h a t "Canada's t o t a l o i l r e s e r v e s were 469 b i l l i o n b a r r e l s a t the end of 1970, w h i l e t o t a l n a t u r a l gas r e s e r v e s were 726 t r i l l i o n c u b i c f e e t . At 1970 r a t e s of p r o d u c t i o n t h e s e r e s e r v e s r e p r e s e n t 923 y e a r s ' s u p p l y f o r o i l and 392 y e a r s ' f o r gas" ( W i l l s o n , p . 5 ) . T h i s p r e d i c t i o n changed a b r u p t l y a f t e r 1973 as i n d i c a t e d by I m p e r i a l O i l ' s f o r e c a s t t h a t " w i t h i n 10 y e a r s p r o d u c t i o n r a t e s from e x i s t i n g r e s e r v e s i n Western Canada w i l l be inadequate t o s u p p l y markets now b e i n g s e r v e d , and new so u r c e s of s u p p l y must be ready t o s t a r t d e l i v e r i n g energy when t h i s d e c l i n e b e g i n s " ( W i l l s o n , p . 6 ) . The c o n f u s i o n c r e a t e d by t h i s d r a m a t i c reassessment was not l i m i t e d t o t he p u b l i c , as i s e x p l a i n e d by E r i c K i e r a n s i n h i s a r t i c l e : "The Day the C a b i n e t was M i s l e a d " . Only s i n c e the mid - 1970s have independent s t u d i e s been undertaken t o determine the t r u e e x t e n t of Canadian r e s e r v e s i n o i l and n a t u r a l gas. K i e r a n s , a c a b i n e t m i n i s t e r i n the e a r l y 1970's, r e p o r t s how the i n f o r m a t i o n p r o v i d e d t o The N a t i o n a l Energy Board by the C P . A . was c o n t i n u a l l y j u g g l e d t o j u s t i f y f i r s t , a d d i t i o n a l U.S. e x p o r t s , and l a t e r , h i g h e r p r i c e s and a p r e s s i n g need f o r an a r c t i c gas l i n e t o supplement the suddenly reduced e s t i m a t e s of r e s e r v e s i n A l b e r t a and B.C. ( K i e r a n s , p. 5) . C o n s i d e r i n g t h e s e e v e n t s , i t i s not s u r p r i s i n g a mood of p e r p l e x i t y and even apathy e x i s t s among the g e n e r a l p u b l i c - who have been bombarded by c o n f l i c t i n g and erroneous i n f o r m a t i o n 13 from both i n d u s t r y and government. The danger of c r e a t i n g f u r t h e r c o n f u s i o n was r e c o g n i z e d by the N.E.B. i n i t s most r e c e n t r e p o r t on the s u p p l y and demand of n a t u r a l gas: "The Board i s concerned t h a t the p u b l i c i t y b e i n g g i v e n the Deep B a s i n , 5 and p a r t i c u a r i l y the view t h a t i t c o n t a i n s a p o t e n t i a l i n e xcess of 400 T c f . , may be m i s l e a d i n g t o the g e n e r a l p u b l i c , who may wrongly assume t h a t Canada has an a d d i t i o n a l r e s e r v e of t h i s magnitude t o s e r v e i t s s h o r t and medium-term r e q u i r e m e n t s . " (Energy, Mines and Resources Canada, 1979, p.19). S t i l l , a f t e r r e c o g n i z i n g Canada's l a r g e p o t e n t i a l i n energy r e s o u r c e s , the p r e v a i l i n g a t t i t u d e among Canadians remains one of optomism and o u t r i g h t r e j e c t i o n of p o s s i b l e s e r i o u s energy s h o r t a g e s f o r Canada. 2.1.2 C u r r e n t F o r e c a s t s D e s p i t e a g g r e s s i v e e x p l o r a t i o n programs i n r e c e n t y e a r s , and improved r e c o v e r y t e c h n i q u e s , proven r e s e r v e s of o i l d e c l i n e d 35 p e r c e n t from 1969 t o 1979 w h i l e proven gas r e s e r v e s were o n l y 10 p e r c e n t h i g h e r ( W i l l s o n , p.6) . Canada i s a l r e a d y i m p o r t i n g 30 p e r c e n t of i t s o i l r e q u i r e m e n t s . P r o j e c t i o n s of n a t u r a l gas s u p p l i e s i n d i c a t e a f a r more p r e s s i n g need f o r c o n s e r v a t i o n than i s commonly acknowledged by government, and c o n t r a d i c t the p r e v a i l i n g p u b l i c i m p r e s s i o n s t h a t Canada has enormous untapped n a t u r a l gas r e s e r v e s . The most r e c e n t f o r e c a s t of n a t u r a l gas s u p p l y was made by the N a t i o n a l Energy Board (NEB) a f t e r a p u b l i c i n q u i r y which 5An a r e a of A l b e r t a and B r i t i s h Columbia which i s thought t o have good p o t e n t i a l f o r n a t u r a l gas. 14 i n c l u d e d s u b m i s s i o n s from the p r i v a t e energy s e c t o r and the p r o v i n c e s . The supply/demand b a l a n c e was f o r e c a s t t o the year 2000 f o r B r i t i s h C olumbia, A l b e r t a , and the p o r t i o n of Canada e a s t of A l b e r t a . The u n c e r t a i n t y of p r e d i c t i n g f u t u r e supply/demand r e l a t i o n s h i p s was w e l l i l l u s t r a t e d by the d i s c r e p a n c y i n f o r e c a s t s p r o v i d e d by p r i v a t e energy f i r m s . The most p e s s i m i s t i c of the s u b m i s s i o n s was by P o l a r Gas, which p r e d i c t e d growing d e f i c i e n c e s commencing i n 1986 (Energy, Mines and Resources Canada, 1979, p.76). A f t e r h e a r i n g s u b m i s s i o n s by most energy f i r m s a c t i v e i n gas e x p l o r a t i o n , the NEB made the f o l l o w i n g f o r e c a s t : 1. Because of A l b e r t a ' s 30 y e a r p r o t e c t i o n f o r m u l a , 6 the needs of t h a t p r o v i n c e w i l l be f u l l y met over the p e r i o d of the f o r e c a s t . 2. For B r i t i s h C olumbia, the t o t a l demand can be met u n t i l a d e f i c i e n c y appears i n 1999. 3. T o t a l demand e a s t of A l b e r t a can o n l y be met u n t i l 1992 when a d e f i c i e n c y w i l l o c c u r (Energy, Mines and Resources Canada, 1979, p.80). A d i s t i n c t i o n must be made between proven r e s e r v e s of c o n v e n t i o n a l f u e l s e c o n o m i c a l l y r e c o v e r a b l e and p o t e n t i a l r e s e r v e s , p l u s o t h e r s o u r c e s not y e t p r a c t i c a b l e on a l a r g e s c a l e . F.K. N o r t h , a prominent Canadian g e o l o g i s t , d e s c r i b e d the s u p p l y of a l l non-renewable or e x h a u s t i b l e energy s o u r c e s i n v e r y c l e a r terms when he commented on the debate over the c o n t i n u e d e x p o r t of Canada's s u r p l u s n a t u r a l gas: "...the s u r p l u s i s e s s e n t i a l l y one of temporary p r o d u c t i v e c a p a c i t y o n l y , and i s an outgrowth of an i n c r e a s e i n price...When the commodities s a i d t o be i n s u r p l u s a re non-renewable and 6 A l b e r t a has e s t a b l i s h e d a p o l i c y t o ensure a t l e a s t a 30 year s u p p l y of n a t u r a l gas f o r i t s own use b e f o r e e x p o r t . 15 i r r e p l a c e a b l e , does the word { s u r p l u s } r e a l l y mean a n y t h i n g a t a l l " ( i n Nemetz, 1979, p . 3 ) . T h i s statement u n d e r s c o r e s the u l t i m a t e e x h a u s t i b i l i t y of n a t u r a l gas and o i l - the two f u e l s i n most commom use today i n Canada. F u e l s such as c o a l , which are r e l a t i v e l y more abundant, are c u r r e n t l y of l i t t l e use as repla c e m e n t s f o r o i l and gas, e s p e c i a l l y i n the r e s i d e n t i a l and t r a n s p o r t a t i o n s e c t o r s . 7 T h i s f a c t combined w i t h the u n c e r t a i n t i e s i n h e r e n t i n f o r e c a s t i n g l o n g e r - t e r m energy demands, and p r e d i c t i n g the p o t e n t i a l s u p p l y of energy beyond proven r e s e r v e s , l e a v e s even Canada i n an i n s e c u r e p o s i t i o n . Owing t o the non-renewable n a t u r e of f o s s i l f u e l s , the w o r l d as a whole has the foremost c h a l l e n g e of e x t e n d i n g s u p p l i e s of c o n v e n t i o n a l energy u n t i l a l t e r n a t i v e s o u r c e s become p r a c t i c a l . How f o r t u n a t e Canada w i l l be i n a c c o m p l i s h i n g t h i s g o a l depends on the s u c c e s s f u l management of energy demand, and on the r a t e a t which new d i s c o v e r i e s of f o s s i l f u e l s a r e made i n Canada's f r o n t i e r r e g i o n s . L i m i t i n g energy demand and i n c r e a s i n g c o n v e n t i o n a l energy s u p p l y a r e the two b a s i c s h o r t -term o p t i o n s open t o f o r e s t a l l f u t u r e energy c r i s e s . 2.2 ENERGY CONSERVATION AS A .SOLUTION L a s t i n g s o l u t i o n s t o the w o r l d ' s energy problem must undoubtedly come from renewable forms of energy, r e q u i r i n g s u b s t a n t i a l t e c h n o l o g i c a l advances and c o m m e r c i a l i z a t i o n . In o r d e r t o p r o v i d e adequate time f o r t h e s e l o n g - t e r m s o l u t i o n s t o 7 T h e r e i s p r e s e n t l y i n c r e a s i n g amounts of i n t e r - f u e l s u b s t i t u t i o n o c c u r r i n g , and as energy p r i c e s , r i s e t h e r e s h o u l d be more o p p o r t u n i t y t o make abundant forms of energy more v e r s a t i l e t h r o u g h such p r o c e s s e s as c o a l l i q u e f a c t i o n . 16 d e v e l o p , a s h o r t - t e r m a l t e r n a t i v e i s n e c e s s a r y which meets t h r e e i m p o r t a n t c r i t e r i a : proven t e c h n o l o g i c a l f e a s i b i l i t y , p o t e n t i a l f o r s i g n i f i c a n t energy s a v i n g s , and r e l a t i v e l y low c o s t (Nemetz, 1979, p . 6 ) . T h i s a l t e r n a t i v e i s c o n s e r v a t i o n ; i t has. been u n i v e r s a l l y acknowledged as a major p o l i c y i n s t r u m e n t f o r d e a l i n g w i t h our energy problems. An e x t e n s i v e s t u d y i n t o the g l o b a l energy problem conducted by The M a s s a c h u s e t t s I n s t i t u t e of Technology c o n c l u d e d t h a t " . . . p o l i c i e s f o r a c h i e v i n g energy c o n s e r v a t i o n s h o u l d c o n t i n u e t o be key elements of a l l f u t u r e energy s t r a t e g i e s " ( p . 5 ) . • However, Nemetz sees two drawbacks w i t h c o n s e r v a t i o n . F i r s t - , i t i s not a s o l u t i o n i n i t s e l f - i t o n l y d e l a y s the i n e v i t a b l e e x h a u s t i o n of c o n v e n t i o n a l energy s u p p l i e s . Second, and more d i r e c t l y r e l a t e d t o t h i s i n v e s t i g a t i o n , i s the f a c t t h a t many of the more p r o m i s i n g a r e a s f o r i m p l e m e n t a t i o n of energy c o n s e r v a t i o n s t r a t e g i e s r e q u i r e s t r o n g p o l i t i c a l and economic a c t i o n by government which can run c o u n t e r t o e s t a b l i s h e d s o c i a l v a l u e s and l i f e - p a t t e r n s (Nemetz, 1979, p . 7 ) . A l e g a c y of the e r a of l o w - p r i c e d energy i s m i r r o r e d i n the enormous p o t e n t i a l f o r c o n s e r v i n g energy which e x i s t e d i n a l l s e c t o r s of our economy i n 1973, and which i s s t i l l l a r g e l y p r e s e n t t o d a y . Y e t , owing t o the p r e d i s p o s t i o n of western s o c i e t y t o economic growth, energy s u p p l y e x p a n s i o n through a g g r e s s i v e e x p l o r a t i o n and r e c o v e r y schemes has ta k e n precedence over energy c o n s e r v a t i o n as a government p o l i c y o p t i o n . A l t h o u g h i t i s o b v i o u s t h a t both c o n s e r v a t i o n and s u p p l y e x p a n s i o n a r e i n d i s p e n s i b l e p a r t s of an energy p o l i c y , the l a t t e r , b e i n g more p o l i t i c a l l y f e a s i b l e , has a p p a r e n t l y remained 17 the more v i t a l and c r e d i b l e s o l u t i o n i n the eyes of i n d u s t r y and government p o l i c y - m a k e r s . 2.3 RESIDENTIAL USE COMPONENT--NATIONAL ENERGY BUDGET The r e s i d e n t i a l s e c t o r i n Canada i s a major consumer of energy, amounting, t o n e a r l y 20 p e r c e n t 8 of t h e t o t a l n a t i o n a l energy budget. Energy s a v i n g s i n r e s i d e n t i a l space h e a t i n g can be a t t a i n e d i n two w a y s — b y r e t r o f i t t i n g or u p g r a d i n g the energy e f f i c i e n c y of the seven m i l l i o n e x i s t i n g u n i t s , and second, by im p r o v i n g the d e s i g n , c o n s t r u c t i o n , and.hence energy e f f i c i e n c y of u n i t s t h a t w i l l be b u i l t i n the f u t u r e . New house c o n s t r u c t i o n has c o n t r i b u t e d between two and t h r e e p e r c e n t of t o t a l e x i s t i n g h o u s i n g s t o c k y e a r l y depending on economic c o n d i t i o n s , and w i l l r e s u l t i n a c u m u l a t i v e i n c r e a s e of some 30% d u r i n g the 1980's (HUDAC, O n t a r i o M i n i s t r y of Energy, p. i i ) , i n d i c a t i n g e x t e n s i v e p o t e n t i a l f o r energy s a v i n g s . Energy s a v i n g s a t t a i n a b l e i n new home space h e a t i n g can range up t o an 80 p e r c e n t r e d u c t i o n i n . f u e l consumption compared t o a new house c o n s t r u c t e d t o t y p i c a l 1978 s t a n d a r d s . 9 ( M i n i s t r y of Energy, Mines and P e t r o l e u m R e s o u r c e s , 1981, p.16) The Saskatchewan C o n s e r v a t i o n House, c o n s t r u c t e d t o e x t r e m e l y h i g h i n s u l a t i o n s t a n d a r d s 1 0 and i n c o r p o r a t i n g both p a s s i v e s o l a r 8 i n c l u d e s farm use 9 F o r Vancouver t h i s would be an R20 a t t i c , R10 w a l l s and s i n g l e g l a z i n g . 18 a s p e c t s and an a c t i v e s o l a r s y s t e m , 1 1 o p e r a t e s on 10 g i g a j o u l e s of energy per y e a r . T h i s compares t o 140 g i g a j o u l e s f o r a p r e ~ 1975 home and 80 t o 90 g i g a j o u l e s f o r a Regina home b u i l t t o 1977 CMHC s t a n d a r d s (see Table 2.2) (Brooks, p.121). I t was e s t i m a t e d t h a t the p a s s i v e s o l a r g a i n s , and i n t e r n a l heat g a i n s from a p p l i a n c e s and people c o n t r i b u t e d n e a r l y 80 p e r c e n t of the h e a t i n g r e q u i r e m e n t s (31 p e r c e n t was c o n t r i b u t e d by the s i m p l e p a s s i v e d e s i g n a s p e c t s ) f o r the Saskatchewan C o n s e r v a t i o n home (Saskatchewan M i n e r a l R e s o u r c e s , p.21). In c o n v e n t i o n a l homes,, not d e s i g n e d f o r s o l a r g a i n , s o l a r heat a c c o u n t s f o r between 8 and 16 p e r c e n t of g r o s s annual h e a t i n g r e q u i r e m e n t s . Y e t , even t h i s u n i n t e n t i o n a l c a p t u r e of s o l a r energy c o n s t i t u t e s a q u a n t i t y of energy e q u a l t o 2.26 p e r c e n t of the t o t a l n a t i o n a l energy consumption (Energy, Mines and R e s o u r c e s , 1980b, p. 6 0 ) . Thus, t h e r e i s enormous p o t e n t i a l f o r super i n s u l a t e d homes, d e s i g n e d f o r p a s s i v e s o l a r g a i n t o reduce the h e a t i n g r e q u i r e m e n t s f o r Canada's r e s i d e n t i a l s e c t o r over the l o n g term. 2.4 GOVERNMENT ENERGY EFFICIENCY REGULATIONS J u r i s d i c t i o n over the d e s i g n and c o n s t r u c t i o n of b u i l d i n g s l i e s p r i m a r i l y w i t h the p r o v i n c i a l government i n B.C., and m u n i c i p a l governments i n Saskatchewan. B r i t i s h Columbia has 1 0 A t t i c - R60, w a l l s - R40, i n s u l a t i n g window s h u t t e r s , and a p e r f e c t l y s e a l e d a i r - v a p o u r b a r r i e r . 1 1Due t o o p e r a t i o n a l d i f f i c u l t i e s , the a c t i v e s o l a r system c o n t r i b u t e d o n l y 8.9 p e r c e n t of the homes h e a t i n g r e q u i r e m e n t s d u r i n g the m o n i t o r i n g p e r i o d (Saskatchewan M i n e r a l R e s o u r c e s , p.21). 19 adopted the " N a t i o n a l B u i l d i n g Code of C a n a d a " 1 2 but has not l e g i s l a t e d energy e f f i c i e n c y s t a n d a r d s or empowered m u n i c i p a l governments t o adopt t h e i r own. Saskatchewan has a u t h o r i z e d m u n i c i p a l i t i e s t o adopt the N a t i o n a l Code and/or " R e s i d e n t i a l S t a n d a r d s " p l u s any o t h e r r e g u l a t i o n s t o c o n t r o l the c o n s t r u c t i o n of new b u i l d i n g s . Regina has adopted the N a t i o n a l Code, but has not a c t e d t o e n f o r c e " R e s i d e n t i a l S t a n d a r d s " or any o t h e r energy e f f i c i e n c y s t a n d a r d s . Thus t e c h n i c a l l y , i t i s s t i l l p o s s i b l e t o c o n s t r u c t a r e s i d e n t i a l b u i l d i n g i n e i t h e r Regina or Vancouver w i t h o u t i n c l u d i n g i n s u l a t i o n . The document t h a t c o n t i n u e s t o p r o v i d e q u i d e l i n e s f o r -r e s i d e n t i a l c o n s t r u c t i o n i n Canada i s " R e s i d e n t i a l S t a n d a r d s " , which was f i r s t i s s u e d in.1965 by the A s s o c i a t e Committee on the N a t i o n a l B u i l d i n g Code f o r use by CMHC i n a l l NHA f i n a n c e d or i n s u r e d development (see T a b l e s 2.1 and 2.2). N e v e r t h e l e s s , owing t o the dominance of CMHC i n the h o u s i n g market i n the e a r l y and mid-1970's ( a p p r o x i m a t e l y 4.0-60 p e r c e n t of new houses were f i n a n c e d t h rough NHA), the energy e f f i c i e n c y s t a n d a r d s i n c o r p o r a t e d i n t h i s document were g e n e r a l l y f o l l o w e d by much of the h o u s i n g i n d u s t r y . T h e r e f o r e , CMHC was the p r i m a r y i n i t i a t o r of i n c r e a s e s i n energy e f f i c i e n c y d u r i n g t h i s p e r i o d . R e c e n t l y , the r a p i d r i s e i n s i n g l e - f a m i l y house p r i c e s , and the c o m p e t i t i o n from s e v e r a l p r i v a t e mortgage i n s u r a n c e companies, 1 2 E n e r g y e f f i c i e n c y s t a n d a r d s a r e not p a r t of the N a t i o n a l B u i l d i n g Code, and c o n s e q u e n t l y have not been i n c o r p o r a t e d i n the p r o v i n c i a l or l o c a l c odes. Under S e c t i o n 26 of the N a t i o n a l B u i l d i n g Code, r e s i d e n t i a l b u i l d i n g s need o n l y be p r o v i d e d w i t h s u f f i c i e n t t h e r m a l i n s u l a t i o n " t o p r e v e n t m o i s t u r e c o n d e n s a t i o n on the i n t e r i o r s u r f a c e s of w a l l s , c e i l i n g s and f l o o r s d u r i n g the w i n t e r and t o ensure c o m f o r t a b l e c o n d i t i o n s f o r the oc c u p a n t s " . 20 has reduced CMHC's i n f l u e n c e i n the market and hence i t s a b i l i t y t o i n f l u e n c e energy e f f i c i e n c y s t a n d a r d s . T a b l e 2.1 CHMC Minimum Energy E f f i c i e n c y S t a n d a r d s * ( V a n c o u v e r ) B u i l d i n g Components 1970 1975 1977 J u l y 1981 5 8.33 ( 1 1 . I I ) 1 9.09 (14.29) None 8.33 (11.11) No e n e r g y r e l a t e d c o n s i d e r a t i o n s S i n g l e None 9.04 (10.89) 9.04 (10.89) 8.4 t o 12" below grade 9.04 (10.89) No energy r e l a t e d c o n s i d e r a t i o n s S i n g l e None 14.2 27.8 12.17 22.87 9 t o 24" below g r a d e 8.5 to 24" below grade 26.7 Energy r e l a t e d c o n s i d e r a t i o n s S i n g l e None 22.87 Energy r e l a t e d c o n s i d e r a t i o n s as 1977 3 Dou b l e 4 ( o r storm d o o r ) Above Grade W a l l s C e i l i n g s Basement F o u n d a t i o n W a l l s F l o o r s ^ A i r - V a p o u r B a r r i e r Window G l a z i n g Doors *A11 f i g u r e s a r e I m p e r i a l R v a l u e s ^ V a l u e s f o r houses h e a t e d e l e c t r i c a l l y i n b r a c k e t s . 2 These v a l u e s r e f e r t o f l o o r s o v e r u n h e a t e d s p a c e s . 3 The t o t a l a l l o w a b l e g l a z e d a r e a was r e d u c e d t o 15% from 2 0% o f the t o t a l b u i l d i n g a r e a a l l o w e d i n the 1977 s t a n d a r d s . However, e x c e p t i o n i s made f o r an i n c r e a s e i n t o t a l a r e a : 1) i f t r i p l e - g l a z e d u n i t s a r e used; 2) when o t h e r components o f b u i l d i n g a re above m i n i m u m . s t a n d a r d s ; or 3) s o u t h - f a c i n g g l a z i n g may be assumed t o have 50% o f i t s a c t u a l a r e a . A t h e r m a l b r e a k ( a m a t e r i a l used t o r e d u c e c o n d e n s a t i o n and he a t l o s s ) i s r e q u i r e d i n m e t a l frame windows. ^ V a l u e s f o r 1975 were p e r m i t t e d t o be a l t e r e d a c c o r d i n g t o " d e g r e e d a y s " , r e s u l t i n g i n s l i g h t l y d e c r e a s e d minimum i n s u l a t i o n r e q u i r e m e n t s , compared t o 1970. V a l u e s f o r 1981 were a l t e r e d t o c o r r e s p o n d w i t h " d e g r e e d a y s " r e s u l t i n g i n d e c r e a s e d i n s u l a t i o n r e q u i r e m e n t s compared t o 1977. 6 Measures i n c l u d e a c o n t i n u o u s b a r r i e r a t w a l l and c e i l i n g i n t e r s e c t i o n s , o v e r l a p p i n g 4 i n c h e s a t j o i n t s , and s e a l i n g o f a l l p e n e t r a t i o n s . SOURCE: N a t i o n a l R e s e a r c h C o u n c i l , R e s i d e n t i a l S t a n d a r d s , 1970, 1975, 1977; CHMC, " B u i l d e r s ' B u l l e t i n " No. 267 1977, No. 332 1981. T a b l e 2.2 CHMC Minimum E n e r g y E f f i c i e n c y S t a n d a r d s * ( R e g i n a ) J u l y B u i l d i n g C o m p o n e n t s 1970 1975 1977 1981 A b o v e G r a d e W a l l s 9.09 ( 1 2 . 5 0 ) 1 13.9 ( 1 4 . 0 ) 14.2 18.5 C e i l i n g s 11.11 ( 1 6 . 6 7 ) 13.9 ( 1 6 . 5 ) 34.7 34.7 B a s e m e n t F o u n d a t i o n W a l l s None 8.4 t o 12" b e l o w g r a d e 9 t o 2 4 " b e l o w g r a d e 8.5 t o 2 4 " be low g r a d e F l o o r s ^ 9.09 ( 1 2 . 5 0 ) 13.9 ( 1 6 . 5 ) 26.7 26.7 A i r - V a p o u r B a r r i e r No e n e r g y r e l a t e d c o n s i d e r a t i o n No e n e r g y r e l a t e d c o n s i d e r a t i o n No e n e r g y r e l a t e d c o n s i d e r a t i o n No e n e r g y r e l a t e d c o n s i d e r a t i o n Window G l a z i n g S i n g l e D o u b l e D o u b l e 3 D o u b l e D o o r s None None 4 ( o r s t o r m d o o r ) 4 ( o r s t o r m d o o r ) * A l l f i g u r e s a r e I m p e r i a l R v a l u e s ^ V a l u e s f o r h o u s e s h e a t e d e l e c t r i c a l l y i n b r a c k e t s . 2 T h e s e v a l u e s r e f e r t o f l o o r s o v e r u n h e a t e d s p a c e s . 3 . The t o t a l a l l o w a b l e g l a z e d a r e a was r e d u c e d t o \5% f r o m 2 0 % o f t h e t o t a l b u i l d i n g a r e a a l l o w e d i n t h e 1977 s t a n d a r d s . H o w e v e r , e x c e p t i o n i s made f o r an i n c r e a s e i n t o t a l a r e a : 1) i f t r i p l e - g l a z e d u n i t s a r e u s e d ; 2) when o t h e r c o m p o n e n t s o f b u i l d i n g a r e a b o v e minimum s t a n d a r d s ; o r 3) s o u t h - f a c i n g g l a z i n g may be a s s u m e d t o h a v e 5 0 % o f i t s a c t u a l a r e a . A t h e r m a l b r e a k ( a m a t e r i a l u s e d t o r e d u c e c o n d e n s a t i o n a n d h e a t l o s s ) i s r e q u i r e d i n m e t a l f r a m e w i n d o w s . ^ M e a s u r e s i n c l u d e a c o n t i n u o u s b a r r i e r a t w a l l a n d c e i l i n g i n t e r s e c t i o n s , o v e r l a p p i n g 4 i n c h e s a t j o i n t s , a n d s e a l i n g o f a l l p e n e t r a t i o n s . SOURCE: N a t i o n a l R e s e a r c h C o u n c i l , R e s i d e n t i a l S t a n d a r d s , 1 970, 1975, 1977; CHMC, " B u i l d e r s ' B u l l e t i n " No. 267 1977, No. 332 1 9 8 1 . 23 2.5 THE NATIONAL ENERGY PROGRAM--RESIDENTIAL SECTOR The l a t e s t f e d e r a l government p l a n f o r the su p p l y and demand of energy i n Canada was announced October 29, 1980 as p a r t of the f e d e r a l budget. The major p o l i c y g o a l i s t o e l i m i n a t e Canada's dependence on imported o i l by 1990 through the s u b s t i t u t i o n of o t h e r f u e l s , p r o v i d i n g i n c e n t i v e s f o r a more a g g r e s s i v e o i l e x p l o r a t i o n program, and g i v i n g a d d i t i o n a l emphasis t o energy c o n s e r v a t i o n . The program s t a t e s t h a t " C o n s e r v a t i o n p r o v i d e s the c l e a n e s t , most e n d u r i n g , and, i n many i n s t a n c e s , the oheapest p a r t of the s o l u t i o n t o the o i l problem i n the 1980's, and t o an improvement of the b a s i c energy b a l a n c e " (Energy, Mines and Resources Canada, 1980a, p.69). In support of t h i s s t a t e m e n t , the f e d e r a l government announced s e v e r a l new programs i n the r e s i d e n t i a l s e c t o r . The Canadian Home Improvement Program (CHIP) i s the major i n i t i a t i v e of the f e d e r a l government t o upgrade the t h e r m a l e f f i c i e n c y of e x i s t i n g homes. I t p r o v i d e s a g r a n t of up t o $500 t o owners of homes b u i l t p r i o r t o 1961. Other programs announced t o h e l p i n c r e a s e the e n e r g y - e f f i c i e n c y of new houses are s u b s t a n t i a l l y l e s s a m b i t i o u s . t h a n the $265 m i l l i o n per year CHIP program, r e f l e c t i n g the importance which i s a t t a c h e d t o r e d u c i n g energy consumption i n the l a r g e e x i s t i n g r e s i d e n t i a l s e c t o r . The document does r e c o g n i z e t h a t " b u i l d i n g energy e f f i c i e n c y i n t o houses from the s t a r t i s u n q u e s t i o n a b l y p r e f e r a b l e t o m o d i f i c a t i o n of houses a l r e a d y b u i l t " (p. 69) but a t t a c h e s the f o l l o w i n g d i s c l a i m e r : "Under p r e s e n t c o n s t i t u t i o n a l arrangements, the f e d e r a l government's r o l e i n h o u s i n g i s 24 l i m i t e d " ( p . 7 0 ) . A l t h o u g h announced by the Program as a m e a n i n g f u l i n i t i a t i v e , CMHC s t a n d a r d s which came i n t o e f f e c t J u l y 1, 1981 ( B u i l d e r ' s B u l l e t i n No. 332) i n c o r p o r a t e o n l y minor changes from 1977 s t a n d a r d s ; none go beyond p r e v a i l i n g i n d u s t r y s t a n d a r d s . The most s i g n i f i c a n t change was t h a t minimum R v a l u e s f o r above grade e x t e r i o r w a l l s were upgraded a c c o r d i n g t o degree d a y s 1 3 i n s t e a d of b e i n g one v a l u e f o r a l l a r e a s of Canada. Thus, CMHC s t a n d a r d s a re now i n agreement w i t h those s p e c i f i e d i n "Measures f o r Energy C o n s e r v a t i o n i n New B u i l d i n g s " which was i s s u e d i n 1978 by the A s s o c i a t e Committee on the N a t i o n a l B u i l d i n g Code a f t e r i t s f o r m u l a t i o n by the N a t i o n a l R e search C o u n c i l . 1 ' In a d d i t i o n t o the r e g u l a t i o n of NHA sponsored development, the f e d e r a l government committed i t s e l f i n a s i m i l a r way t o i n c r e a s e the energy e f f i c i e n c y of h o u s i n g i n N o r t h e r n Canada where i t funds the m a j o r i t y of c o n s t r u c t i o n . I n c e n t i v e s i n the new h o u s i n g f i e l d a r e l i m i t e d t o d e m o n s t r a t i o n p r o j e c t s , where a t o t a l of $6 m i l l i o n w i l l go t o sup p o r t workshops and t r a i n i n g programs, and the d e s i g n and c o n s t r u c t i o n of 1,000 low-energy 1 3 T h e h e a t i n g demand a t d i f f e r e n t l o c a t i o n s i n Canada i s commonly a s s e s s e d by s t u d y i n g the d i s t r i b u t i o n of h e a t i n g degree days. The number of h e a t i n g degree days accumulated on a g i v e n day i s d e f i n e d as the d i f f e r e n c e between the d a i l y mean temperature f o r t h a t day and an 18 degree C e l s i u s base t e m p e r a t u r e . 1 4 T h i s document was i s s u e d as a model code, and was i n t e n d e d f o r a d o p t i o n by m u n i c i p a l i t i e s or p r o v i n c e s . CMHC has been the f i r s t a u t h o r i t y t o adopt the t h e r m a l i n s u l a t i o n s t a n d a r d s w i t h i n the code. Two s t a n d a r d s i n the "Measures"—basement i n s u l a t i o n , and improved a i r - vapour b a r r i e r i n s t a l l a t i o n would both p r o v i d e s i g n i f i c a n t energy s a v i n g s i f implemented. The r e m a i n i n g s t a n d a r d s a r e g e n e r a l l y b e i n g met or s u r p a s s e d by the m a j o r i t y of b u i l d e r s i n t e r v i e w e d . 25 r e s i d e n c e s over the next two y e a r s . Beyond t h e s e i n i t i a t i v e s , and s e v e r a l minor i n c e n t i v e p r o g r a m s , 1 5 the f e d e r a l government has l e f t the onus f o r i n c r e a s i n g the energy e f f i c i e n c y of new h o u s i n g t o the p r o v i n c e s . "The Government of Canada... urges p r o v i n c i a l governments t o proceed w i t h the development of e n e r g y - e f f i c i e n t b u i l d i n g codes, and t o ta k e f u r t h e r s t e p s w i t h i n t h e i r j u r i s d i c t i o n t o f o s t e r i n c r e a s e d r e s i d e n t i a l energy s a v i n g " (p. 71 ) . 2.6 INITIATIVES TO INCREASE ENERGY EFFICIENCY 2.6.1 P r o v i n c i a l Government The B r i t i s h Columbia government i s t a k i n g advantage of the 50 p e r c e n t f e d e r a l f u n d i n g of d e m o n s t r a t i o n p r o j e c t s by b u i l d i n g a s e t of t h r e e homes--a c o n v e n t i o n a l , a super i n s u l a t e d and a super i n s u l a t e d w i t h p a s s i v e s o l a r d e s i g n — i n t h r e e s e p a r a t e l o c a t i o n s . These homes w i l l be m o n i t o r e d f o r two y e a r s t o determine which type i s most a p p r o p r i a t e f o r each l o c a t i o n . In Saskatchewan, the most i m p o r t a n t d e m o n s t r a t i o n p r o j e c t s have been the c o n s t r u c t i o n of the Saskatchewan C o n s e r v a t i o n House i n 1977, and the 1980 Saskatoon Energy Showcase of 14 energy e f f i c i e n t homes d e s i g n e d t o a p p e a l t o the t r a d i t i o n a l home p u r c h a s e r . Beyond the j o i n t l y funded f e d e r a l - p r o v i n c i a l - d e m o n s t r a t i o n 1 5 F o r example, the Housing Technology I n c e n t i v e s Program, which o f f e r s g r a n t s t o p r i v a t e i n d i v i d u a l s and f i r m s r e s e a r c h i n g r e s i d e n t i a l energy problems, and the Low Energy B u i l d i n g and Design Awards. 26 programs, the o n l y i n c e n t i v e program i n Canada d i r e c t e d a t e i t h e r . the new house b u i l d e r or consumer has been i n Saskatchewan. As of May 1, 1981, new house buyers c o u l d a p p l y f o r a $3000 i n t e r e s t - f r e e l o a n t o cover the c o s t of meeting energy e f f i c i e n c y s t a n d a r d s s e t out i n the program. The s t a n d a r d s which must be met t o q u a l i f y are s u b s t a n t i a l l y above both CMHC r e q u i r e m e n t s and p r e v a i l i n g c o n s t r u c t i o n p r a c t i c e s (see T able 2.3). 27 Table 2.3 Saskatchewan Home Energy Loan Program E f f i c i e n c y Standards Building Components Above Grade Walls C e i l i n g s Basement Foundation Walls Floors (over unheated crawlspace) Window Glazing Air-vapour B a r r i e r Doors El e c t r o n i c I g n i t i o n Furnace Set-back Thermostat Standards-26.5 40 20 28 T r i p l e on north, east" west/double on south 6 mil. continuous^ b a r r i e r 10 Yes Yes ^Imperial R Values "^Maximum area s h a l l not exceed 12% of the t o t a l b u i l d i n g area, thermal break required i n metal frame windows. 2 Measures include sealing and stapling against s o l i d wood backing and overlapped one stud space at a l l j o i n t s ; continuous at a l l wall and c e i l i n g i n tersections and at e l e c t r i c a l o u t l e t s , windows, vents and other s i m i l a r openings. Objective i s 0.3 a i r changes per hour. SOURCE: Adapted from "Home Energy Loan Program - Standards Requirements B u l l e t i n " , May 1, 1981, Government of Saskatchewan. 28 2.6.2 M u n i c i p a l Government Two m u n i c i p a l i t i e s i n the G r e a t e r Vancouver a r e a a re a t t e m p t i n g t o improve the energy e f f i c i e n c y of r e s i d e n t i a l development w i t h i n t h e i r j u r i s d i c t i o n . The m u n i c i p a l i t y of Richmond i s p r e s e n t l y o f f e r i n g a d e n s i t y bonus (from .8 F.S.R. to .9 F.S.R.) f o r developments which a re shown t o have a r e d u c t i o n i n space h e a t i n g r e q u i r e m e n t s of 40 p e r c e n t over c u r r e n t s t a n d a r d s . Response from b u i l d e r s has been good over the year the i n c e n t i v e has been i n e f f e c t ( J a m e i s o n ) . The C i t y of Vancouver i s p r e s e n t l y c o n s i d e r i n g u p g r a d i n g i t s b u i l d i n g s t a n d a r d s by i n c o r p o r a t i n g the "1978 Measures" w i t h i n i t s b u i l d i n g bylaw. The s p e c i a l powers g i v e n • to Vancouver by the "Vancouver C h a r t e r " a l l o w t h i s c i t y t o r e g u l a t e such s t a n d a r d s . 2.6.3 Other I n i t i a t i v e s I n c r e a s e d i n t e r e s t i n r e s i d e n t i a l energy e f f i c i e n c y by p r o v i n c i a l governments, a f e a r of r e g u l a t i o n , and r i s i n g h o u s i n g consumer c o n s c i o u s n e s s has sp a r k e d the HUDAC (the b u i l d e r ' s n a t i o n a l a s s o c i a t i o n ) "Energy Saver" program. U n f o r t u n a t e l y , m a r k e t i n g seems t o be the major m o t i v a t i o n s i n c e the s t a n d a r d s r e q u i r e d by the v o l u n t a r y program a re g e n e r a l l y o n l y e q u i v a l e n t t o the s t a n d a r d s a l r e a d y common i n the i n d u s t r y . F u r t h e r energy e f f i c i e n c y s t a n d a r d s have been recommended by the Canadian E l e c t r i c A s s o c i a t i o n , an o r g a n i z a t i o n of Canadian u t i l i t i e s . The s t a n d a r d s a re e n t i r e l y v o l u n t a r y and a l t h o u g h B.C. Hydro and Saskatchewan Power C o r p o r a t i o n have done some pro m o t i o n of the "EE" s t a n d a r d , l i t t l e i n t e r e s t has 29 r e s u l t e d . 2.7 POTENTIAL IMPACT OF INCREASED CONSERVATION The b e n e f i t s t o be o b t a i n e d by making new h o u s i n g more energy e f f i c i e n t a r e t h r e e - f o l d : 1. the s o c i a l advantages; which i n c l u d e the economic b e n e f i t s of an improved n a t i o n a l t r a d e b a l a n c e , t hrough a r e d u c t i o n of energy i m p o r t s , and a d e l a y i n the need f o r c o s t l y p i p e l i n e s and o t h e r major energy p r o j e c t s i n N o r t h e r n Canada; the e n v i r o n m e n t a l b e n e f i t s of a reduced p o l l u t i o n t h r e a t r e s u l t i n g from d e c r e a s e d e x p l o r a t i o n and e x t r a c t i o n i n e n v i r o n m e n t a l l y s e n s i t i v e r e g i o n s , and a r e d u c t i o n i n h e a t i n g f u e l combustion, 2. The p r i v a t e b e n e f i t s ; p r i m a r i l y monetary s a v i n g s a c h i e v e d t h r o u g h lower f u e l consumption but a l s o the p s y c h o l o g i c a l , b e n e f i t s of a c h i e v i n g a degree of energy s e c u r i t y and the i n c r e a s e d c o m f o r t of an energy e f f i c i e n t home, and 3. the postponement of p o s s i b l e f u t u r e energy s h o r t a g e s . The a b i l i t y of Canada's energy s u p p l y t o meet n a t i o n a l needs remains a matter of c o n j e c t u r e , b e i n g not o n l y dependent on e s t i m a t e s of s u p p l y , but a l s o f o r e c a s t s of demand, which can v a r y w i d e l y when a f f e c t e d by f u t u r e energy p r i c e s , and g e n e r a l economic c o n d i t i o n s . Immediate a d o p t i o n of more energy e f f i c i e n t h o u s i n g i n Canada would have a d e f i n i t e impact on the l o n g - r u n supply/demand b a l a n c e of n a t u r a l gas and o i l but i t i s u n l i k e l y t h a t i t would be s u f f i c i e n t t o e n t i r e l y p r e v e n t the p r e d i c t e d d e f i c i e n c e s from o c c u r r i n g b e f o r e 2000. Because of the r a t i o of new d w e l l i n g s t o e x i s t i n g h o u s i n g s t o c k , the c u m u l a t i v e e f f e c t of new energy e f f i c i e n t h o u s i n g would not make a t e l l i n g i m p r e s s i o n on the n a t i o n a l energy budget f o r some t i m e . However, any c o n s e r v a t i o n e f f o r t w i l l h e l p reduce 30 C a n a d a ' s r e l i a n c e on i m p o r t e d o i l , a n d e x t e n d t h e l i f e o f i t s n a t u r a l g a s r e s e r v e s , e n a b l i n g t h e d i s c o v e r y o f l a s t i n g a l t e r n a t i v e means t o h e a t homes a n d s e r v e o u r o t h e r e n e r g y n e e d s . 31 CHAPTER 3: TECHNIQUES AND CONSIDERATIONS IN REDUCING SPACE HEATING REQUIREMENTS 3.0 INTRODUCTION By f a r the l a r g e s t p o r t i o n of t o t a l home energy consumption - 71 p e r c e n t - i n s i n g l e - f a m i l y d w e l l i n g s i n B.C.'s Lower M a i n l a n d , 1 6 i s used t o heat the i n t e r i o r space ( M i n i s t r y of Energy, Mines and P e t r o l e u m R e s o u r c e s , 1980, p.2-41). There a r e many t e c h n i q u e s which can be used d u r i n g the d e s i g n and c o n s t r u c t i o n of a h o u s i n g u n i t t o m i n i m i z e the amount of energy r e q u i r e d t o m a i n t a i n a c o m f o r t a b l e l i v i n g environment. To a c h i e v e maximum energy e f f i c i e n c y , b o th d e s i g n and c o n s t r u c t i o n must respond t o a l l i n t e r n a l and e x t e r n a l f a c t o r s which i n f l u e n c e h e a t i n g r e q u i r e m e n t s . These f a c t o r s a r e : the s i t e c l i m a t e , the f e a t u r e s of the s i t e , the source of energy used, the form and f a b r i c of the u n i t , and the number of occupants (CMHC, 1977, p . 2 ) . Mass-market h o u s i n g i s t y p i c a l l y d e s i g n e d e x c l u s i v e of a l l t h e s e energy i n f l u e n c i n g f a c t o r s , w h i l e i t i s c o n s t r u c t e d t o s t a n d a r d s which o n l y r e f l e c t the s i t e c l i m a t e . The c u r r e n t c o s t of space h e a t i n g has not c r e a t e d s u f f i c i e n t energy awareness t o make energy consumption a m o t i v a t i o n among hous i n g consumers or b u i l d e r s f o r e i t h e r c h o o s i n g a h o u s i n g t y p e , or c o n s i d e r i n g u n i t d e s i g n or s i t e i n f l u e n c e s . 1 7 1 6 O w i n g t o c l i m a t i c f a c t o r s , t h i s f i g u r e would be somewhat h i g h e r f o r R e g i n a . 1 7 S i t e i n f l u e n c e s a re such f a c t o r s as v e g e t a t i o n , topography or im m e d i a t e l y a d j o i n i n g p r o p e r t y . 3 2 3.1 CONSTRUCTION TECHNIQUES I t i s a b a s i c p r i n c i p l e of p h y s i c s t h a t heat w i l l f l o w between spaces which a r e a t d i f f e r e n t t e m p e r a t u r e s , and t h e r e f o r e i t i s i m p o s s i b l e t o p r e v e n t heat l o s s from a d w e l l i n g . The r a t e of heat l o s s can o n l y be slowed by c o u n t e r a c t i n g the t h r e e means by which heat i s t r a n s f e r r e d : c o n d u c t i o n through m a t e r i a l s , and c o n v e c t i o n and r a d i a t i o n w i t h i n and a c r o s s a i r spaces (CMHC, 1977, p . 3 1 ) . The b u i l d i n g envelope ( w a l l s , r o o f , f l o o r s over unheated s p a c e s , windows and doors) l o s e s i n t e r i o r heat through each of these p r o c e s s e s . C o n v e r s e l y , each of t h e s e p r o c e s s e s can be c o u n t e r a c t e d t h r o u g h one or more c o n s t r u c t i o n t e c h n i q u e s . " 3 . 1 . 1 I n s u l a t i o n -I n s u l a t i o n slows down the t r a n s f e r of heat i n two ways. I t s most i m p o r t a n t f u n c t i o n i s t o reduce c o n v e c t i o n , or a i r movement, i n b u i l d i n g c a v i t i e s , such as w a l l s . When p r o p e r l y i n s t a l l e d t o f i t the c a v i t y s n u g l y , i n s u l a t i o n w i l l p r o v i d e s u f f i c i e n t r e s i s t a n c e t o a i r movement t o overcome the d r i v i n g f o r c e of the temperature d i f f e r e n c e (HUDAC, O n t a r i o M i n i s t r y of Energy, p . 7 ) . I n s u l a t i o n a l s o h e l p s t o p r e v e n t r a d i a t i v e heat t r a n s f e r between s u r f a c e s by d i f f u s i n g the r a d i a t i o n . The v a l u e of i n s u l a t i o n i n p r e v e n t i n g heat l o s s i s measured i n R v a l u e s 1 8 — t h e measure of a m a t e r i a l ' s r e s i s t a n c e t o heat f l o w . The most 8R v a l u e s can be measured i n e i t h e r m e t r i c or i m p e r i a l u n i t s , but owing t o the predominance of i m p e r i a l measures i n the c o n s t r u c t i o n i n d u s t r y , R v a l u e s mentioned here w i l l be i m p e r i a l measures. 33 common a r e a s i n s u l a t e d i n a c o n v e n t i o n a l home are the w a l l c a v i t i e s , c r a w l s p a c e w a l l s , a t t i c s , and r o o f s . Over the pa s t s e v e r a l y e a r s , basement f o u n d a t i o n w a l l s , and exposed f l o o r s above c r a w l s p a c e s or garages have been i n s u l a t e d more f r e q u e n t l y . 3.1.2 Windows And Doors  Windows Among the components of a home's th e r m a l s h e l l , windows can be the g r e a t e s t source of heat l o s s . A common analogy drawn i s between a window and a h o l e i n an i n s u l a t e d w a l l . Even a d o u b l e - g l a z e d window l o s e s t h r e e times as much heat as an u n i n s u l a t e d w a l l and n i n e t i m e s as much as a s t a n d a r d i n s u l a t e d w a l l of e q u a l a r e a 1 9 (CMHC, 1977, p.50). The t h e r m a l r e s i s t a n c e of a window i s de t e r m i n e d i n p a r t by the number of panes of g l a s s , the th e r m a l conductance of the sash, and the amount of a i r space between the panes. Heat i s l o s t i n two o t h e r ways: by a i r l e a k a g e through j o i n t s i n the window i t s e l f and by a i r l e a k a g e t h r o u g h the j o i n t s between the window and the w a l l . There a r e v a r i o u s t y p e s of windows a v a i l a b l e which overcome the problem of heat l o s s t h r o u g h the window t o g r e a t e r o r l e s s e r e x t e n t . For example, s l i d i n g windows are l e s s energy e f f i c i e n t than h i n g e d windows because a gap i s n e c e s s a r y t o p e r m i t s l i d i n g . A d d i t i o n a l l y , frames of wood windows have a g r e a t e r 1 9 T h e e x c e p t i o n i s windows o r i e n t e d s o u t h , which a r e l i k e l y t o c o n t r i b u t e net g a i n s t o the home's heat b a l a n c e d u r i n g most p e r i o d s of the year i n the populous s o u t h e r n Canadian r e g i o n s . 34 r e s i s t a n c e t o heat conductance than aluminum. The l o s s . o f heat through j o i n t s between windows and .the w a l l can be p a r t i a l l y overcome by p r o p e r i n s t a l l a t i o n u s i n g i n s u l a t i o n and c a u l k i n g . R e c e n t l y , much more e f f e c t i v e means of r e d u c i n g heat l o s s t h r o ugh w i n d o w s — i n s u l a t i n g s h u t t e r s and b l i n d s — a r e b e g i n n i n g t o appear i n N o r t h America a f t e r more f r e q u e n t use i n many n o r t h e r n European c o u n t r i e s . Three t y p e s of s h u t t e r s are c u r r e n t l y under e x p e r i m e n t a t i o n — i n t e r i o r , between two panes and e x t e r i o r . Each of t h e s e l o c a t i o n s has p r e s e n t e d o p e r a t i o n a l d i f f i c u l t i e s , r a n g i n g from c o n d e n s a t i o n w i t h p o o r l y f i t t i n g i n t e r i o r s h u t t e r s , t o c l o s u r e problems of e x t e r i o r s h u t t e r s caused by snow and i c e a c c u m u l a t i o n . S o l a r Gain The heat l o s s c h a r a c t e r i s t i c s of windows have been emphasized by b u i l d i n g r e s e a r c h e r s and o t h e r s f o r some t i m e ; the heat g a i n p o t e n t i a l i s a somewhat l e s s f a m i l i a r c o n c e p t . Depending on the l o c a t i o n of windows i n a home, and whether s u r r o u n d i n g v e g e t a t i o n or b u i l d i n g s c r e a t e o b s t r u c t i o n s f o r s o l a r r a d i a t i o n , windows can p r o v i d e some heat g a i n t o compensate f o r t h e i r heat l o s s c h a r a c t e r i s t i c s . In f a c t , windows w i t h a f u l l s o u t h e r n exposure can p r o v i d e a net y e a r l y heat g a i n . Doors Compared t o windows, do o r s p r e s e n t a s i m i l a r but l e s s c r i t i c a l heat l o s s problem. A l t h o u g h l e a k a g e o c c u r s around door frames as i t does around window frames, doors g e n e r a l l y make up 35 a s m a l l e r t o t a l a r e a , and can themselves p r o v i d e a h i g h e r t h e r m a l r e s i s t a n c e than g l a s s . A s i m p l e s o l i d wood door can o f f e r double the r e s i s t a n c e t o heat t r a n s f e r (R3.0) a v a i l a b l e from a d o u b l e - g l a z e d window. I n s u l a t e d m e t a l d o o r s , p r e s e n t l y i n common use among mass-market b u i l d e r s , p r o v i d e f i v e t i m e s the t h e r m a l r e s i s t a n c e (R7.5 - 10) of a d o u b l e - g l a z e d window. M e t a l doors a l s o i n c r e a s e the e f f e c t i v e n e s s of w e a t h e r s t r i p p i n g which i s a p p l i e d t o door jambs t o reduce a i r l e a k a g e . T h i s improvement r e s u l t s from t h e i r r e s i s t a n c e t o warping and bowing i n c o l d weather. V e s t i b u l e s , or some form of double e n t r a n c e way, a r e a l s o e f f e c t i v e i n r e d u c i n g heat l o s s and a i r i n f i l t r a t i o n when doors a r e opened. 3.1.3 A i r - v a p o u r B a r r i e r s As i n s u l a t i o n l e v e l s i n c r e a s e , d o u b l e - g l a z e d windows a r e improved, and i n s u l a t e d m e t a l doors become more common, the fo c u s f o r improved energy e f f i c i e n c y s h i f t s t o a much l e s s o b v i o u s cause of heat l o s s - - a i r l e a k a g e t h r o u g h a m u l t i t u d e of j o i n t s and p e r f o r a t i o n s i n the b u i l d i n g e n v e l o p e . These s o u r c e s of l e a k a g e r e s u l t from such common o c c u r r e n c e s as the p e n e t r a t i o n of the c e i l i n g by plumbing s t a c k s and l i g h t f i x t u r e s , and the gaps between the basement f o u n d a t i o n and f l o o r . W h i l e the concept of i n s u l a t i o n i s e a s i l y g r a s p e d , the importance of a much l e s s t a n g i b l e a s p e c t , such as a i r t i g h t n e s s , i s not w e l l u n d e r s t o o d . A p p r o x i m a t e l y e v e r y two h o u r s , the e n t i r e volume of a i r i n s i d e a c o n v e n t i o n a l home i s r e p l a c e d by o u t s i d e a i r . In w i n t e r c o n d i t i o n s t h i s i n f i l t r a t e d 36 a i r must be heated t o room t e m p e r a t u r e . In the average Canadian d w e l l i n g , a i r change a c c o u n t s f o r between 22 and 30 p e r c e n t of the t o t a l h e a t i n g l o a d , w h i l e windows and d o o r s , f o r example, account f o r o n l y about 20 p e r c e n t . The remainder i s l o s t t h r o u g h w a l l s and c e i l i n g s . An average new house has a t o t a l l e a k a g e e q u i v a l e n t t o a s i n g l e h o l e about two f e e t (600 m i l l i m e t e r s ) square (Energy Research Development Group, p . 4 ) . I n c r e a s i n g the a i r - t i g h t n e s s of a house can be a c c o m p l i s h e d v e r y e f f e c t i v e l y t h r ough p r o p e r i n s t a l l a t i o n of a vapour b a r r i e r . The vapour b a r r - i e r i s t r a d i t i o n a l l y used t o p r e v e n t the p e n e t r a t i o n of warm, humid i n t e r i o r a i r i n t o w a l l s and a t t i c s where i t would cause c o n d e n s a t i o n problems, d e s t r o y the e f f e c t i v e n e s s of the i n s u l a t i o n and u l t i m a t e l y cause r o t t i n g and d e t e r i o r a t i o n of the s t r u c t u r a l components. The need f o r g r e a t e r energy e f f i c i e n c y has extended the u s e f u l n e s s of the vapour b a r r i e r t o i n c l u d e p r e v e n t i n g a i r i n f i l t r a t i o n ; hence the name a i r - v a p o u r b a r r i e r . P r o p e r i n s t a l l a t i o n of a t h i c k e r vapour b a r r i e r , which i s o v e r l a p p e d and c a u l k e d a t a l l j o i n t s and the use of p o l y p a n s 2 0 around e l e c t r i c a l boxes, f o r m i n g a c o n t i n u o u s p l a s t i c b l a n k e t , can e f f e c t i v e l y c u t a i r i n f i l t r a t i o n by one h a l f or more. Consequent energy s a v i n g s range from 10 t o 20 p e r c e n t (CMHC, 1977, p.5 4 ) . True a i r - t i g h t c o n s t r u c t i o n u n f o r t u n a t e l y c r e a t e s i n t e r i o r a i r q u a l i t y problems and w i n t e r c o n d e n s a t i o n . Some exchange of a i r i s r e q u i r e d t o remove ho u s e h o l d odours, smoke and o t h e r 2 0 A box which f i t s b e h i n d e l e c t i c a l o u t l e t s and i s s e a l e d t o the a i r - v a p o u r b a r r i e r t o p r e v e n t a i r i n f i l t r a t i o n t h r o u g h w a l l o u t l e t s . 37 t o x i c s u b s t a n c e s . The o b j e c t i v e i n energy e f f i c i e n t h o u s i n g i s t o a c h i e v e c o n t r o l l e d v e n t i l a t i o n - r e d u c i n g a i r i n f i l t r a t i o n and heat l o s s e s , w h i l e m a i n t a i n i n g adequate v e n t i l a t i o n f o r the o c c u p a n t s . Adequate a i r exchange must be a c h i e v e d e i t h e r by occupant a c t i o n ( i . e . opening windows) or. m e c h a n i c a l l y , through an outdoor a i r f e e d t o the f u r n a c e , exhaust fans or c e n t r a l v e n t i l a t i n g system. One of the major dilemmas t o be overcome i n energy e f f i c i e n t h o u s i n g i s t h a t the f i r s t t h r e e of t h e s e measures c o u l d e i t h e r over-compensate or under-compensate f o r the i n c r e a s e d a i r - t i g h t n e s s of the home. Thus too much v e n t i l a t i o n d e f e a t s the purpose of a i r - t i g h t c o n s t r u c t i o n , w h i l e too l i t t l e c r e a t e s the problems j u s t mentioned. P r o b a b l y the most e f f e c t i v e s o l u t i o n has been t o i n s t a l l a c e n t r a l v e n t i l a t i n g system w i t h an a i r - t o - a i r heat exchanger which can e x t r a c t heat from exhaust a i r and t r a n s f e r 70 p e r c e n t or more of i t t o incoming a i r . However the c o s t of t h i s s o l u t i o n i s s t i l l p r o h i b i t i v e i n the s h o r t - t e r m i n a l l but the c o l d e s t r e g i o n s 2 1 The o n l y o t h e r a l t e r n a t i v e a t p r e s e n t i s t o a l e r t the occupant of the " a i r - t i g h t " home t o the s i g n a l s of inadequate v e n t i l a t i o n and the remedies ( i . e . opening windows). The r e s u l t c o u l d be a r e t u r n t o the s i t u a t i o n which prompted a t t e n t i o n b e i n g g i v e n t o a i r - t i g h t n e s s i n i t i a l l y — u n c o n t r o l l e d v e n t i l a t i o n or heat l o s s . ^ n e Regina b u i l d e r i n t e r v i e w e d who s p e c i a l i z e s i n energy e f f i c i e n t h o u s i n g i s c u r r e n t l y i n s t a l l i n g a i r - t o - a i r heat exchangers as s t a n d a r d equipment. The c o s t of the system i s $1500 per house. 38 3 . 2 ENERGY E F F I C I E N T H E A T I N G S Y S T E M S - - F U R N A C E S AND F I R E P L A C E S H e a t i n g s y s t e m s a r e r e q u i r e d i n a l l C a n a d i a n homes t o s u p p l y h e a t a t a r a t e w h i c h m a t c h e s t h e r a t e o f h e a t l o s s , i n o r d e r t o m a i n t a i n a c o n s t a n t i n s i d e t e m p e r a t u r e . The r a t e a t w h i c h h e a t m u s t be s u p p l i e d w i l l v a r y w i t h t h e d i f f e r e n c e b e t w e e n i n s i d e a n d o u t s i d e t e m p e r a t u r e s . , a n d i s a l s o i n f l u e n c e d by s u c h f a c t o r s a s w i n d , s o l a r r a d i a t i o n , a n d i n t e r n a l g a i n s f r o m l i g h t i n g , a p p l i a n c e s a n d t h e o c c u p a n t s . A c r u d e m e a s u r e o f t h e e n e r g y e f f i c i e n c y o f a h o u s e i s t h e b a l a n c e p o i n t t e m p e r a t u r e — t h e t e m p e r a t u r e a t w h i c h t h e i n t e r n a l h e a t g a i n s m a t c h t h e h e a t l o s t t h r o u g h t h e b u i l d i n g e n v e l o p e a n d by v e n t i l a t i o n (CMHC, 1 9 7 7 , p . 8 5 ) . B e l o w t h i s e x t e r i o r t e m p e r a t u r e , t h e h e a t i n g s y s t e m m u s t b e g i n t o s u p p l y h e a t . I n many e n e r g y e f f i c i e n t h o u s e s i n c o r p o r a t i n g a i r - t o - a i r h e a t r e c o v e r y s y s t e m s , t h e b a l a n c e p o i n t t e m p e r a t u r e c a n be a s l o w a s 1 t o 4 ° C , o r l o w e r i f t h e h o u s e i s d e s i g n e d t o m a x i m i z e t h e u s e o f s o l a r h e a t g a i n . A s s u m i n g no s o l a r h e a t g a i n , t h e b a l a n c e p o i n t t e m p e r a t u r e i n a c o n v e n t i o n a l home i s u s u a l l y a r o u n d 18 d e g r e e s C e l s i u s when t h e i n t e r n a l t e m p e r a t u r e i s s e t a t 2 2 d e g r e e s C e l s i u s . ' F u r n a c e s / E l e c t r i c a l h e a t M a n y e n e r g y s o u r c e s may be e m p l o y e d b e l o w t h e b a l a n c e p o i n t t e m p e r a t u r e i n r e s i d e n c e s i n c l u d i n g w o o d , c o a l a n d c o k e , b u t t h e m o s t c o n v e n i e n t , c l e a n e s t a n d m o s t p o p u l a r a r e n a t u r a l g a s , o i l 39 and e l e c t r i c i t y . 2 2 Of these t h r e e , e l e c t r i c i t y i s the most e f f i c i e n t , s i n c e i t can be c o n v e r t e d e n t i r e l y t o u s e f u l heat a t the end use, i n v o l v e s no chimney l o s s e s , and i s u s u a l l y p r o v i d e d w i t h i n d i v i d u a l room t h e r m o s t a t s , a l l o w i n g g r e a t e r f l e x i b i l i t y of o p e r a t i o n . 2 3 O i l and gas h e a t i n g systems are l e s s e f f i c i e n t s i n c e some of the heat p o t e n t i a l i n the f u e l i s l o s t t h r o u g h the i n t a k e of combustion a i r and the e x h a u s t i o n of burned gases. In a d d i t i o n , l o s s e s occur i n d i s t r i b u t i n g the f u r n a c e heat t o the l i v i n g space. Recent improvements i n o i l and gas f u r n a c e s have r a i s e d t h e i r o v e r a l l e f f i c i e n c y from a p p r o x i m a t e l y 6 0 p e r c e n t t o 8 0 p e r c e n t . T h i s i s a c c o m p l i s h e d u s i n g f l u e dampers t o reduce heat l o s s t h r o u g h the chimney i n both o i l and g a s - f i r e d f u r n a c e s , e l e c t r o n i c i g n i t i o n d e v i c e s i n gas f u r n a c e s and d e l a y e d - a c t i o n v a l v e s i n o i l f u r n a c e s . These energy e f f i c i e n t f u r n a c e s are commonly used i n c o n j u n c t i o n w i t h s e t - b a c k ( d a y - n i g h t ) t h e r m o s t a t s , employing s i m p l e t i m i n g d e v i c e s which can be s e t t o reduce the temperature i n the house a t n i g h t t o c o n s e r v e energy. 2 2 E l e c t r i c a l h e a t i n g i s v i r t u a l l y n o n - e x i s t e n t i n Saskatchewan. A l t h o u g h i t i s much more common i n the Vancouver a r e a , i t has f a l l e n i n t o d i s f a v o u r i n the s i n g l e - f a m i l y detached market because of i t s h i g h e r o p e r a t i n g c o s t s . However, at l e a s t one major Vancouver b u i l d e r has r e - i n t r o d u c e d e l e c t r i c baseboard h e a t i n g i n the upper f l o o r of s p l i t - l e v e l homes. 2 3 E l e c t r i c i t y i s o n l y the most energy e f f i c i e n t when c o n s i d e r i n g i t s end-use i n the home. I f i t i s g e n e r a t e d by b u r n i n g f o s s i l f u e l s a t a c e n t r a l p l a n t , l o s s e s occur here and a l s o i n t r a n s m i s s i o n , which reduce the o v e r a l l e f f i c i e n c y t o as low as o n e - t h i r d the heat energy of the f u e l o r i g i n a l l y burned. Thus, i n t h i s c a s e , e l e c t r i c i t y c o u l d be the l e a s t e f f i c i e n t . 40 F i r e p l a c e s F i r e p l a c e s have l o n g been c o n s i d e r e d a s o u r c e of supplementary heat i n homes. In r e a l i t y , the t r a d i t i o n a l form of masonry f i r e p l a c e l o c a t e d a l o n g an e x t e r i o r w a l l can be a net l o s e r of heat energy. T h i s c i r c u m s t a n c e a r i s e s from the d e s i g n and o p e r a t i o n of the t r a d i t i o n a l f i r e p l a c e . F i r s t , a l l of the a i r t h a t f i r e p l a c e s exhaust t h r o u g h the chimney i s r e p l a c e d by c o l d o u t s i d e a i r a t an u n c o n t r o l l e d r a t e . Second, f o r a e s t h e t i c r e a s o n s , the masonry p o r t i o n of c o n v e n t i o n a l f i r e p l a c e s o f t e n extends t h r o u g e x t e r i o r w a l l w i t h no. t h e r m a l break or i n s u l a t i o n . Thus the stone or b r i c k a c t s . a s a c o n d u c t o r of heat through the w a l l . T h i r d , p l a c i n g the f i r e p l a c e on the e x t e r i o r , w a l l exposes l e s s of the hot f i r e p l a c e s t r u c t u r e t o room a i r . The i n s t a l l a t i o n of p r e f a b r i c a t e d m e t a l f i r e p l a c e s can o f f e r p o t e n t i a l s o l u t i o n s t o a l l t h e s e problems. Combustion a i r can be . i n t r o d u c e d i n t o the f i r e p l a c e from o u t s i d e a t a c o n t r o l l e d r a t e and g l a s s doors p r o v i d e d t o reduce the amount of warm room a i r used f o r combustion. These f i r e p l a c e s can be more e a s i l y p l a c e d a g a i n s t an i n t e r i o r w a l l o f f e r i n g g r e a t e r heat t r a n s f e r t o the room and, i f p l a c e d on an e x t e r i o r w a l l , do not c i r c u m v e n t the i n c l u s i o n of a c o n t i n u o u s vapour b a r r i e r and w a l l i n s u l a t i o n as masonry f i r e p l a c e s u s u a l l y do. 3.3 PASSIVE SOLAR DESIGN Energy e f f i c i e n c y improvements i n h o u s i n g may be viewed as a s t e p - w i s e p r o c e s s . As c o n s t r u c t i o n t e c h n i q u e s and m a t e r i a l s a r e upgraded, energy s a v i n g s per d o l l a r spent d e c l i n e s and the most c o s t - e f f e c t i v e a r e a s f o r improvement may s h i f t t o a s p e c t s 41 of d e s i g n . G e n e r a l l y , p a s s i v e s o l a r d e s i g n (beyond the s i m p l e a d d i t i o n of s o u t h - f a c i n g g l a z i n g ) cannot be j u s t i f i e d u n t i l i n s u l a t i o n and the a i r - v a p o u r b a r r i e r a r e upgraded above p r e s e n t s t a n d a r d s s i n c e the a d d i t i o n of p a s s i v e s o l a r d e s i g n f e a t u r e s t o a c o n v e n t i o n a l l y i n s u l a t e d home, w i t h much g r e a t e r h e a t i n g demands, would r e s u l t i n a s m a l l c o n t r i b u t i o n t o h e a t i n g r e q u i r e m e n t s . Once the s e s t a n d a r d s are s i g n i f i c a n t l y improved, the t h e r m a l performance of the home w i l l become h i g h l y s e n s i t i z e d t o v a r i a t i o n s i n s i z e and placement of g l a z i n g , n e c e s s i t a t i n g a much g r e a t e r concern w i t h the i n f l u e n c e of p a s s i v e s o l a r g a i n on the heat b a l a n c e i n homes (Energy, Mines and R e s o u r c e s , 1980b, p . 3 ) . The e x t e n t of p a s s i v e s o l a r d e s i g n can range from s i m p l y i n c r e a s i n g s o u t h - f a c i n g g l a s s a r e a s and a t t e n d a n t i n t e r n a l mass, t o a more e l a b o r a t e trombe w a l l . The net g a i n from s o l a r r a d i a t i o n i s then enhanced by r e d u c i n g the window ar e a on the e a s t and west, and p r o v i d i n g m i n i m a l g l a z i n g on the n o r t h . Thermal mass, such as c o n c r e t e f l o o r s l a b s or b r i c k w a l l s , are n e c e s s a r y a d j a c e n t to the s o u t h - f a c i n g windows t o absorb heat d u r i n g the day. T h i s h e l p s t o p r e v e n t daytime o v e r h e a t i n g , and r e t a i n s heat f o r r e l e a s e d u r i n g the n i g h t . When s t r u c t u r a l mass i s used f o r heat s t o r a g e , i t i s termed a d i r e c t g a i n system. There i s a l s o a mass w a l l system which i s a c o n c r e t e w a l l c o v e r e d by g l a s s (termed a trombe w a l l ) , or surrounded by a greenhouse. The trombe w a l l not o n l y r a d i a t e s s t o r e d heat t o the i n t e r i o r , but a l s o h e a t s and c i r c u l a t e s h o u s e h o l d a i r by c o n v e c t i o n , d r awing i t t h r o u g h a lower damper, and d i s c h a r g i n g i t a t the t o p (HDDAC, O n t a r i o M i n i s t r y of Energy, p.91). The 42 greenhouse performs in a similar fashion. Through each of these methods, 50 percent or more of the home's heating load can be provided, depending on the design features, the energy e f f i c i e n c y of the building envelope and geographic location of the home. Many other unique measures are being tested to conserve conventional sources of energy used for space heating in homes. Methods beyond the scope of thi s investigation include heat pumps in l i e u of, or in conjunction with, a furnace, active solar heating, wood stoves, and d i s t r i c t heating. 43 CHAPTER 4: ECONOMIC CONSIDERATIONS AND CONSTRAINTS TO INCREASING . ENERGY EFFICIENCY 4.0 INTRODUCTION—DISTRIBUTION OF COSTS AND BENEFITS Energy c o n s e r v a t i o n a c t i o n s i n a l l s e c t o r s of the economy produce monetary and non-monetary b e n e f i t s enjoyed d i r e c t l y by the person i n v e s t i n g ; as w e l l as monetary and non-monetary b e n e f i t s t h a t . e x t e n d beyond the i n v e s t o r t o s o c i e t y a t l a r g e . To a t t a i n t h e s e b e n e f i t s , c o s t s must be i n c u r r e d . The most s u b s t a n t i a l a re the monetary c o s t s t o the i n d i v i d u a l , but s e v e r a l non-monetary c o s t s can a l s o be i d e n t i f i e d . These c o s t s c o u l d be the a d v e r s e e f f e c t s of energy c o n s e r v i n g d e s i g n on the a e s t h e t i c s of the d w e l l i n g , or the s u b t l e l i f e s t y l e changes n e c e s s a r y t o t a k e f u l l advantage of the d e s i g n . The homeowner's d e c i s i o n on the e x t e n t of energy c o n s e r v i n g goods t o purchase i s e s s e n t i a l l y based on h i s p e r c e p t i o n of the t o t a l net b e n e f i t s . The l e v e l of energy c o n s e r v a t i o n investment p e r c e i v e d t o p r o v i d e net p e r s o n a l b e n e f i t s d i c t a t e s the t o t a l n a t i o n a l investment i n energy c o n s e r v a t i o n , and the r e s u l t i n g economic and e n v i r o n m e n t a l b e n e f i t s . These n a t i o n a l b e n e f i t s a r e shared by a l l C anadians. Each home p u r c h a s e r p l a c e s d i f f e r e n t emphasis on the economic and s o c i a l b e n e f i t s and c o s t s of energy c o n s e r v i n g f e a t u r e s . In p a r t t h i s r e f l e c t s d i f f e r e n t economic s i t u a t i o n s , l i f e s t l y e s , awareness of the energy i s s u e , and a t t i t u d e s toward energy c o n s e r v a t i o n . Because r e c e n t energy e f f i c i e n c y improvements have not r e q u i r e d s i g n i f i c a n t c a p i t a l e x p e n d i t u r e s , many i n d i v i d u a l d e c i s i o n s t o purchase homes w i t h energy s a v i n g 44 add-ons or i n c r e a s e d i n s u l a t i o n a re not s t r i c t l y economic c h o i c e s . Moreover, a consequence of our r e l a t i v e a f f l u e n c e i s t h a t we do not always.have t o worry about making e c o n o m i c a l l y e f f i c i e n t d e c i s i o n s ( B l u m s t e i n e t . a l . , p.358), and hence, the most a p p r o p r i a t e energy e f f i c i e n t d e c i s i o n s . F u t u r e improvements, (such as those a l r e a d y b e i n g i n c o r p o r a t e d i n the homes of a Regina energy e f f i c i e n c y b u i l d e r ) , n e c e s s i t a t e d by s h a r p l y i n c r e a s e d energy p r i c e s , w i l l i n v o l v e h i g h e r c a p i t a l c o s t s , and f o r c e p o t e n t i a l buyers t o g i v e the economics much c l o s e r s c r u t i n y . . 4.1 MEASURING ECONOMIC EFFICIENCY 4.1.1 L i m i t a t i o n s To Economic A n a l y s i s Economic e f f i c i e n c y i s a measure of the o v e r a l l e f f i c i e n c y under i d e a l c i r c u m s t a n c e s when a l l p r i c e s i g n a l s a c c u r a t e l y r e f l e c t the r e l a t i v e s c a r c i t y of the r e s o u r c e s used. In r e a l i t y , a c c u r a t e p r i c e s i g n a l s can never be guaranteed and hence the economic e f f i c i e n c y measure can o n l y p r o v i d e a rough g u i d e l i n e . F u r t h e r m o r e , whenever f u t u r e c o n d i t i o n s a r e p r e d i c t e d , u n c e r t a i n t i e s a r i s e . In the case of energy c o n s e r v a t i o n , t h r e e u n c e r t a i n t i e s e x i s t : 1. F u t u r e energy p r i c e s have a l a r g e impact on economic a n a l y s i s but cannot be a c c u r a t e l y p r e d i c t e d beyond the s h o r t term. 2 . D i s c o u n t r a t e s or the time v a l u e of money have an e q u a l l y i m p o r t a n t i n f l u e n c e , y e t must be assumed c o n s t a n t over the p e r i o d of a n a l y s i s . Recent f l u c t u a t i o n s i n market i n t e r e s t r a t e s i l l u s t r a t e the e r r o r s i n t r o d u c e d by u s i n g a c o n s t a n t r a t e . 3. A d d i t i o n a l l y , the performance of e n e r g y - c o n s e r v i n g 45 equipment i s not p r e d i c t a b l e as i s u s u a l l y assumed i n economic a n a l y s e s . S a v i n g s depend on such v a r i a b l e s as the b e h a v i o r of the user and the weather. 4.1.2 Methods Of C a l c u l a t i n g C o s t - e f f e c t i v e n e s s Whether i n v e s t m e n t s f o r i m p r o v i n g the d e s i g n and c o n s t r u c t i o n of a house are e c o n o m i c a l l y j u s t i f i e d depends on f i v e f a c t o r s : 1) the c o s t of the i n v e s t m e n t ; 2) the e x p e c t e d u s e f u l l i f e of the i n v e s t m e n t ; 3) the r e s u l t i n g energy s a v i n g s ; 4 ) t h e v a l u e of energy now and throughout the l i f e of the i n v e s t m e n t ; and 5) the i n t e r e s t r a t e r e p r e s e n t i n g the time v a l u e of money (Weber, p.143). The u n d e r l y i n g b a s i s f o r most of the economic a n a l y s i s of energy c o n s e r v i n g t e c h n i q u e s i s d i s c o u n t e d c a s h f l o w ( d . c . f . ) a n a l y s i s . T h i s i s a w e l l - e s t a b l i s h e d t e c h n i q u e f o r comparing f i n a n c i a l i n v e s t m e n t s w i t h a l l o w a n c e f o r t h e compounded i n t e r e s t which the i n v e s t m e n t s are e x p e c t e d t o y i e l d over a p e r i o d of t i m e . Once a d i s c o u n t r a t e has been s e l e c t e d , the " p r e s e n t v a l u e " of a s e r i e s of r e g u l a r s a v i n g s may be c a l c u l a t e d — t h e sum which would need t o be i n v e s t e d now t o p r o v i d e a f u t u r e y i e l d e q u i v a l e n t t o the energy c o s t s a v i n g s . 2 0 (Heap, p. 2 8 ) . I f the c o s t of the energy c o n s e r v i n g t e c h n i q u e i s l e s s than the p r e s e n t v a l u e of t h e a s s o c i a t e d s a v i n g s , the t e c h n i q u e i s judged t o be economic. S i n c e c a p i t a l o u t l a y o c c u r s a t one p o i n t i n time w h i l e energy s a v i n g s a r e c u m u l a t i v e , the l o n g e r the time h o r i z o n , the g r e a t e r the chance t h a t the f i r s t p a r t of the 2 " A l t e r n a t i v e l y , p r e s e n t v a l u e i s s i m p l y d e f i n e d as the v a l u e now, of a stream of income r e c e i v a b l e a t f u t u r e d a t e s . The more d i s t a n t the income, the l e s s i t s p r e s e n t v a l u e . 46 e q u a t i o n i s l a r g e r and the c o n s e r v a t i o n measure i s judged c o s t -e f f e c t i v e 2 5 ( F i s k and Leach, p.164) S e v e r a l v a r i a t i o n s of the b a s i c d . c . f . t e c h n i q u e may be used, a l l of which s h o u l d c o n s i d e r the l e s s o b v i o u s c o s t s of maintenance, r e p a i r and re p l a c e m e n t , and s a l v a g e v a l u e . . 2 6 When the t o t a l c o s t s of p u r c h a s i n g and i n s t a l l i n g . ( m i n u s any s a l v a g e v a l u e ) , m a i n t a i n i n g , r e p a i r i n g , and a l l o t h e r c o s t s a s s o c i a t e d w i t h the f e a t u r e s a re b a l a n c e d a g a i n s t the energy c o s t s , and c o n s i d e r e d over t h e l i f e of the i n v e s t m e n t , d . c . f . i s termed l i f e - c y c l e c o s t i n g . a. Monthly O p e r a t i n g C o s t s C a l c u l a t i n g the i n f l u e n c e t h a t energy - e f f i c e n c y f e a t u r e s w i l l have on t o t a l monthly payments i s an a p p r o p r i a t e c o s t -e f f e c t i v e n e s s a n a l y s i s s i n c e i t i s e a s i l y u n d e r s t o o d by the p o t e n t i a l home p u r c h a s e r . Monthly mortgage payments can be t o t a l l e d w i t h monthly energy c o s t s and compared between a C o n v e n t i o n a l home and one i n c o r p o r a t i n g energy e f f i c i e n t f e a t u r e s over a c e r t a i n p e r i o d . Mortgage payments a r e u s u a l l y assumed t o be f i x e d and energy p r i c e s c o n s i d e r e d t o r i s e a c e r t a i n amount each y e a r . T h e r e f o r e , . • depending on the i n c r e m e n t a l c o s t of the f e a t u r e s and the f i n a n c i n g terms, the t o t a l monthly payments made f o r the energy e f f i c i e n t home w i l l 2 5 0 f c o u r s e , i f a h i g h enough d i s c o u n t r a t e i s chosen, the time h o r i z o n becomes i n s i g n i f i c a n t and the measure w i l l not appear c o s t - e f f e c t i v e . 2 6 F o r the m a j o r i t y of energy c o n s e r v i n g f e a t u r e s d i s c u s s e d i n t h i s s t u d y , t h e s e f a c t o r s a r e not c r i t i c a l . For example, i n s u l a t i o n or an improved a i r - v a p o u r b a r r i e r s h o u l d r e q u i r e no maintenance and have no s a l v a g e v a l u e . 4 7 become l e s s than those f o r the c o n v e n t i o n a l home a t some f u t u r e d a t e . b. Payback P e r i o d Another measure t o a s s e s s c o s t - e f f e c t i v e n e s s found i n the l i t e r a t u r e and r e f e r r e d t o b y . b u i l d e r s i s the ( d i s c o u n t e d ) payback p e r i o d . I t i s a c a l c u l a t i o n of the time ( u s u a l l y y e a r s ) r e q u i r e d f o r the accumulated s a v i n g s i n energy t o e q u a l the i n i t i a l i n vestment i n energy c o n s e r v a t i o n . Because payback p e r i o d i s s i m p l e , e a s i l y u n d e r s t o o d by b u i l d e r s and consumers, and more d i r e c t l y a d d r e s s e s the problem of s h o r t - t e r m ownership i n h o u s i n g , i t w i l l be r e f e r r e d t o f o r the remainder of t h i s s t u d y . 4 . 1 . 3 The C o s t s Of Energy S a v i n g Techniques F i r s t - t i m e c a p i t a l c o s t i s an i m p o r t a n t c o n s i d e r a t i o n f o r both consumers, and b u i l d e r s who c o u l d p o t e n t i a l l y o f f e r a more ma r k e t a b l e f e a t u r e f o r l e s s c o s t than an energy c o n s e r v i n g measure. The a c c u r a c y of i n c r e m e n t a l c o s t e s t i m a t e s f o r a p a r t i c u l a r energy c o n s e r v i n g measure v a r i e s w i t h the r e l a t i v e amounts of l a b o u r and m a t e r i a l s . The c o s t of i n c r e a s e d l a b o u r i n p u t s a r e most d i f f i c u l t t o p r e d i c t , whereas the v a l u e of i n c r e a s e d m a t e r i a l s or s p e c i f i c energy c o n s e r v i n g d e v i c e s can be more p r e c i s e . For example, the i n s t a l l a t i o n of a c o n t i n u o u s a i r - v a p o u r b a r r i e r r e q u i r e s a l a r g e l a b o u r i n p u t and i n v o l v e s a wide range of a t t e n t i o n t o d e t a i l r e s u l t i n g i n a s i m i l a r l y wide range of c o s t i n c r e m e n t s . Moreover, the f a m i l i a r i t y of the b u i l d e r w i t h such t e c h n i q u e s w i l l a f f e c t i n s t a l l a t i o n time and 48 have a d r a s t i c i n f l u e n c e on the f i n a l c o s t s . 2 7 The c o s t s r e p o r t e d here have been g a t h e r e d p r i m a r i l y t h r ough the b u i l d e r i n t e r v i e w s supplemented w i t h i n f o r m a t i o n from HUDAC. They a r e g e n e r a l i z e d , and based on an average s i z e (1300 s q . f t . ) s i n g l e - s t o r e y d etached house. Only the c o s t s of measures r e c e n t l y employed by b u i l d e r s w i l l be c o v e r e d . 2 8 . C o s t s The a d d i t i o n of i n s u l a t i o n i s the best known and most r e a d i l y a c c e p t e d method of i n c r e a s i n g energy e f f i c i e n c y . Moreover, w i t h i n l i m i t s of c o n v e n t i o n a l c o n s t r u c t i o n p r a c t i s e s , the c o s t of i n c r e a s i n g w a l l and c e i l i n g i n s u l a t i o n i s . m i n i m a l (see T a b l e 4.1). I n c r e a s i n g w a l l i n s u l a t i o n from R14 t o R20, as has r e c e n t l y o c c u r r e d i n R e g i n a , r e q u i r e s 2 x 6 i n c h w a l l c o n s t r u c t i o n i n s t e a d of 2 x 4 i n c h . The c o s t of a p p r o x i m a t e l y $1000 r e f l e c t s i n c r e a s e d i n s u l a t i o n m a t e r i a l as w e l l as i n c r e a s e d lumber r e q u i r e m e n t s 2 9 The expense of i m p r o v i n g the R v a l u e of windows i s v a r i a b l e depending on the t ype of windows used. For example, s e a l e d window u n i t s and t h e r m a l break windows ar e both more c o s t l y than 2 7 I n g e n e r a l , c o s t s of l a b o u r i n t e n s i v e f e a t u r e s w i l l be h i g h e r i n i t i a l l y but w i l l f a l l as the t e c h n i q u e s are improved and c o n s t r u c t i o n t ime i s reduced. 2 8 T h e c o s t s of p a s s i v e s o l a r d e s i g n a r e d i f f i c u l t t o p r e d i c t a c c u r a t e l y w i t h o u t b e i n g c e r t a i n of the e x a c t d e t a i l s i n c o r p o r a t e d . 2 9 I n c r e a s e d m a t e r i a l s r e s u l t i n g from the use of wider 2 x 6 i n c h s t u d s i n w a l l s c o u l d be p a r t i a l l y o f f s e t by the w i d e r s p a c i n g of the v e r t i c a l members p e r m i t t e d by the h e a v i e r s t u d s . 49 are s t a n d a r d d o u b l e - g l a z e d w i n d o w s . 3 0 A l s o , the number and s i z e of windows w i l l i n f l u e n c e the a d d i t i o n a l c o s t . I n s u l a t e d m etal doors a r e , i n most i n s t a n c e s , s l i g h t l y cheaper than a comparable wood door. The average c o s t i n c r e a s e s of improved a i r - v a p o u r b a r r i e r i n s t a l l a t i o n c o u l d range from $100 f o r s i m p l y i n s t a l l i n g t h i c k e r 6 m i l l i m e t e r p o l y e t h y l e n e (2 m i l l i m e t e r i s s t a n d a r d i n the i n d u s t r y ) w i t h some c a u l k i n g , t o $1000 or more i f a t t e n t i o n i s p a i d t o d e t a i l s and p o l y p a n s are i n s t a l l e d . HUDAC r e p o r t s i n c r e m e n t a l c o s t s of $400 f o r t h e t e c h n i q u e s of i n s t a l l a t i o n d e s c r i b e d i n . S e c t i o n 4.1 of the " B u i l d e r s ' Guide t o Energy E f f i c i e n c y i n New H o u s i n g " . 3 1 A i r - t o - a i r heat exchangers are the c o s t l i e s t s i n g l e f e a t u r e t o be used so f a r i n energy e f f i c i e n t h o u s i n g . The energy e f f i c i e n c y s p e c i a l t y b u i l d e r i n t e r v i e w e d i n s t a l l s them a t a c o s t of $1500. T h i s i n c l u d e s the u n i t , the d u c t i n g and the d e s i g n m o d i f i c a t i o n t h a t i s n e c e s s a r y t o accomodate the d u c t i n g . I n t r o d u c i n g a package of energy e f f i c i e n t f e a t u r e s t o a s t a n d a r d 2x4 i n c h c o n s t r u c t i o n Regina home of 1 978 3 2 would r e q u i r e $2500 t o $3000 e x c l u s i v e of an a i r - t o - a i r heat 3 0 S t a n d a r d d o u b l e - g l a z e d windows i n c o r p o r a t e c o n d e n s a t i o n punch-ou t s which make them l e s s a i r - t i g h t . 3 1 T h i s document recommends s e a l i n g or o v e r l a p p i n g of the b a r r i e r a t a l l j o i n t s , c a r e f u l s e a l i n g s of a l l o p e n i n g s , the e l i m i n a t i o n of e l e c t r i c a l o u t l e t s and f i x t u r e s on e x t e r i o r w a l l s where p e r m i t t e d , and use of a t h i c k e r p o l y e t h y l e n e . 3 2 T h i s would i n c l u d e 2x6 w a l l s (R20), (R14 i n 1978), i n c r e a s i n g c e i l i n g i n s u l a t i o n from R28 t o R40, i n s u l a t i n g the f o u n d a t i o n w a l l s t o R12, s i g n i f i c a n t improvements t o the a i r - v a p o u r b a r r i e r (Sask. Home Energy Loan Program S t a n d a r d s ) , a s e t - b a c k t h e r m o s t a t and an energy e f f i c i e n t f u r n a c e . 50 e x c h a n g e r . 3 3 The same f e a t u r e s c o u l d c o s t s l i g h t l y more i n Vancouver because of h i g h e r c o n s t r u c t i o n c o s t s . P r a c t i c e p r e v a l e n t among Regina b u i l d e r s 3 " i n v o l v e s a c a p i t a l c o s t i n c r e a s e of $1200 t o $1600 over a s i m i l a r home c o n s t r u c t e d i n 1978. T y p i c a l p r i c e i n c r e a s e s i n a s i m i l a r s i z e d Vancouver home r e s u l t i n g from i n c r e a s i n g energy e f f i c i e n c y measures are on the or d e r of $ 6 0 0 3 5 e x c l u s i v e of the c o s t s of d o u b l e - g l a z i n g which was a l r e a d y common i n 1978. 3 3 T h e p r i c e of c o n s t r u c t i n g a ( l 3 0 0 s q. f t . home i n Regina i n 1981 would range from $45,000 t o 55,000, depending on the• q u a l i t y of c o n s t r u c t i o n . 3*2x6 (R20) w a l l s (R14 i n 1978), R40 c e i l i n g s (R28 i n 1978), and some improvements i n the a i r - v a p o u r b a r r i e r . 3 5R14 w a l l s (R10 i n 1978), R28 c e i l i n g s (R20 i n 1978), and mi n i m a l improvements t o the a i r - v a p o r b a r r i e r . Table 4.1- Average Costs and Payback Periods of the Techniques Average Incremental Average Payback Period (Years) Techniques Costs Regina Vancouver Above RIO to R14 $200 8 to 12 Grade Walls R14 to R20 $1,000 12 to 15 R20 to R28 $100 10 to 15 Ceili n g s $200 1 R35 to R40 12 to 15 Basement None to R12z $850 15 to 20 Foundation Walls R12 to R20 $300 Basement None to Crawl- R8.5 (2 f t . $300 10 to 15 Space below grade) Window Single to Double $1,500 10 to 15 Glazing Double to T r i p l e (3 sides) $500 15 to 20 Air-vapour B a r r i e r $100-$1,000 7 to 10 13 to 17 ($400) ($400) Energy E f f i c i e n t $350 6 to 8 6 to 20 Furnace Set-Back Thermostat $80 2 to 6 3 to 5 Includes thicker "fireguard" drywall to prevent c e i l i n g sag. 2The cost of ext e r i o r foundation wall i n s u l a t i o n i s roughly equivalent to the more commonly i n t e r i o r i n s u l a t i o n . SOURCE: HUDAC, Savings and Payback Guides, CMHC; builder interviews. 52 4.1.4 Discounted Payback Perio d s Of Techniques a. L i m i t a t i o n s Of Payback A n a l y s i s L i k e automobile mileage r a t i n g s , the accuracy of the payback measure depends h e a v i l y on the l i f e s t y l e p a t t e r n s of the i n h a b i t a n t s . Proper use of an energy e f f i c i e n t home, i n c l u d i n g v o l u n t a r y mechanisms such as set-back thermostats, i s g e n e r a l l y assumed i n a l l payback c a l c u l a t i o n s . In a d d i t i o n , average c l i m a t i c c o n d i t i o n s are assumed. A s e r i e s of unusually m i l d or harsh winters c o u l d e i t h e r lengthen or shorten the.average payback p e r i o d f o r e c a s t . T h i s f a c t i s adequately i l l u s t r a t e d by the payback p e r i o d s f o r Regina compared to the longer payback p e r i o d s for the much milder Vancouver c l i m a t e . I n a d d i t i o n , the c o s t - e f f e c t i v e n e s s of one fe a t u r e cannot be judged e x c l u s i v e of other f e a t u r e s i n the home. For example, the use of a setback thermostat i n a po o r l y i n s u l a t e d home would be more c o s t -e f f e c t i v e than i f i t were used i n a w e l l i n s u l a t e d one. Thus, payback p e r i o d s w i l l vary a c c o r d i n g to the package of f e a t u r e s i n the home. The estimates r e p o r t e d i n Table 4.1 were obtained from CMHC, and HUDAC data which assumes that the discount r a t e ( i n f l a t i o n r a t e p l u s some r a t e of return) i s equal to the in c r e a s e i n n a t u r a l gas p r i c e s . 3 6 Such an assumption i n t r o d u c e s e r r o r , e s p e c i a l l y d u r i n g times of f l u c t u a t i n g market i n t e r e s t r a t e s and changing energy p r i c i n g p o l i c i e s . Hence, the payback 3 6 N a t u r a l gas p r i c e s were set at roughly t h e i r September 1 9 8 0 l e v e l s . Current p r i c e s are approximately 50 percent higher, and would t h e r e f o r e reduce the payback p e r i o d s by a s i m i l a r amount, a l l other f a c t o r s being e q u a l . 53 p e r i o d s s t a t e d here a re o n l y meant t o convey a g e n e r a l i m p r e s s i o n of the c o s t e f f e c t i v e n e s s of f e a t u r e s d e s c r i b e d . More d e t a i l e d a n a l y s i s i s beyond the scope of the c u r r e n t i n v e s t i g a t i o n . b. Payback P e r i o d s The measure w i t h the s h o r t e s t payback p e r i o d (2 to 6 y e a r s f o r R e g i n a ; 3 t o 5 y e a r s f o r Vancouver) i s the n i g h t s e t - b a c k t h e r m o s t a t , (see Tab l e 4.1) i f i t i s assumed t h a t the temperature i s reduced from 22° C t o 16° C f o r 8 hours out of ever y 24 h o u r s . The c a p i t a l c o s t s of improvements i n a i r - v a p o u r b a r r i e r i n s t a l l a t i o n p r a c t i c e s recommended i n HUDAC's " B u i l d e r s ' Guide" would r e q u i r e 7 t o 10 y e a r s t o r e c o v e r i n Re g i n a , and 13 t o 17 y e a r s i n Vancouver. Energy e f f i c i e n t furnaces, have a payback p e r i o d which i s h i g h l y v a r i a b l e , r a n g i n g from 6 t o 8 y e a r s i n R e g i n a , and up t o 20 y e a r s i n Vancouver depending on the l e v e l of i n s u l a t i o n i n the home. T h i s v a r i a b i l i t y p a r t l y r e f l e c t s the l a r g e p o t e n t i a l f o r energy s a v i n g s which were p r e s e n t i n t y p i c a l 1978 Vancouver homes 3 7 (6 year p a y b a c k ) , compared t o the s a v i n g p o s s i b l e i n a more energy e f f i c i e n t home (20 year p a y b a c k ) . 7 T h i s home would l a c k double g l a z e d windows, would i n c o r p o r a t e R12 c e i l i n g i n s u l a t i o n as opposed t o R28, have no f o u n d a t i o n i n s u l a t i o n and a c o n v e n t i o n a l a i r - v a p o u r b a r r i e r . 54 4.1.5 V a r i a b i l i t y Of Payback F o r e c a s t s In r e v i e w i n g d a t a on payback p e r i o d s , a l a c k of agreement was apparent between the v a r i o u s s o u r c e s . T h i s i l l u s t r a t e s the l a r g e impact t h a t assumption on d i s c o u n t r a t e s , energy p r i c e e s c a l a t i o n , and the o t h e r energy c o n s e r v i n g f e a t u r e s i n s t a l l e d i n the home can have on the c a l c u l a t i o n of c o s t - e f f e c t i v e n e s s . For example, CMHC e s t i m a t e s of payback p e r i o d s f o r f o u n d a t i o n w a l l i n s u l a t i o n u p g r a d i n g from no i n s u l a t i o n t o R12 f o r Regina i s 20 y e a r s . The payback p e r i o d f o r R8.5 i n HUDAC's Energy Saver "Savings and Payback Guide" i s 6 y e a r s . Under t h e s e c i r c u m s t a n c e s , s e n s i t i v i t y a n a l y s i s would determine the impact of v a r y i n g key f a c t o r s . T h i s form of check would be even more r e l e v a n t i n c u r r e n t p e r i o d s of u n u s u a l l y h i g h i n t e r e s t r a t e s t o determine how thes e v a r i a b l e s would i n f l u e n c e the economic e f f i c i e n c y of energy s a v i n g f e a t u r e s . P a r t i a l l y because c a p i t a l c o s t i n c r e a s e s have so f a r been m i n i m a l , c u r r e n t d e c i s i o n s on energy c o n s e r v i n g investment a r e not b e i n g made on payback c r i t e r i a a l o n e . C o n s e q u e n t l y , energy c o n s e r v a t i o n investment may a l r e a d y be g r e a t e r than t h a t which appears e c o n o m i c a l l y e f f i c i e n t f o r a s h o r t - t e r m owner. B u i l d e r s have i n c r e a s e d t h e i r s t a n d a r d s , u s i n g c o n v e n t i o n a l t e c h n i q u e s , i n response t o a g r e a t e r energy awareness. More s u b s t a n t i a l i n c r e a s e s w i l l b r i n g f o r t h i s s u e s and problems which have not been c r i t i c a l t o the argument of i n c r e a s i n g energy e f f i c i e n c y t o d a t e . These a s p e c t s w i l l now be o u t l i n e d . 55 4.2 ECONOMIC CONSTRAINTS 4.2.1 A f f o r d a b i l i t y ' There i s p r e s e n t l y a h o u s i n g a f f o r d a b i l i t y c r i s i s i n many p a r t s of Canada. The s i t u a t i o n i s b e i n g g r e a t l y a g g r a v a t e d by c u r r e n t r e c o r d h i g h mortgage r a t e s . Under the p r e s e n t c i r c u m s t a n c e s , the perc e n t a g e of the p o p u l a t i o n h a v i n g adequate income t o purchase a home i s g r a d u a l l y b e i n g eroded. One r e s u l t i s an enormous p r e s s u r e on b u i l d e r s t o c u t t h e i r c a p i t a l c o s t s . 3 8 Housing a f f o r d a b i 1 i t y i s an e s p e c i a l l y s e r i o u s problem f o r f i r s t - t i m e b u y e r s . These i n d i v i d u a l s a re o f t e n unconcerned or even unaware of o p e r a t i n g c o s t s u n t i l they a c t u a l l y e x p e r i e n c e them. U n t i l t h e n , f i r s t - t i m e buyers seek the lo w e s t p r i c e d home c o n s i s t e n t w i t h t h e i r o t h e r a s p i r a t i o n s . The motive t o l i m i t ( f i r s t ) c o s t s i s f u r t h e r r e i n f o r c e d t h r o u g h p r e s e n t e l i g i b i l i t y p r o c e d u r e s employed by l e n d i n g i n s t i t u t i o n s . A maximum a l l o w a b l e l o a n i s det e r m i n e d based on income and e x i s t i n g debt l o a d . As y e t no widesp r e a d r e c o g n i t i o n has been g i v e n monthly home o p e r a t i n g c o s t s , which would be l e s s f o r an energy e f f i c i e n t home. 3 9 3 8 A concern w i t h m i n i m i z i n g c a p i t a l c o s t s would not be as apparent d u r i n g a p e r i o d of buoyant house s a l e s as Vancouver has j u s t been t h r o u g h . T h i s c o u l d e x p l a i n , i n p a r t , the i n c r e a s e i n energy e f f i c i e n c y which o c c u r r e d d u r i n g t h i s p e r i o d . 3 9 T h e r e i s a t l e a s t one major Canadian bank t h a t has r e c e n t l y e x p r e s s e d an i n t e r e s t i n a l l o w i n g i n c r e a s e d mortgages based on the reduced monthly o p e r a t i n g c o s t s of an energy e f f i c i e n t home. A f o r t h c o m i n g program w i l l p o s s i b l y run i n c o n j u n c t i o n w i t h HUDAC's Energy Saver Program. CMHC has a l r e a d y f o r m a l l y r e c o g n i z e d o p e r a t i n g c o s t s i n i t s e l i g i b i l t y c r i t e r i a . 56 The. i n c r e m e n t a l c o n s t r u c t i o n c o s t s of energy c o n s e r v i n g f e a t u r e s have amounted t o o n l y 1 t o 2 p e r c e n t i n Vancouver, and 2 t o 3 p e r c e n t i n Regina s i n c e 1978. The o v e r a l l impact on house p r i c e s has been u n r e c o g n i z a b l e a m i d s t , g e n e r a l i n f l a t i o n and l a n d p r i c e i n c r e a s e s . F u t u r e energy e f f i c i e n c y measures r e q u i r e d t o c o u n t e r a c t h i g h e r energy p r i c e s w i l l l i k e l y r e q u i r e s i g n i f i c a n t l y more c a p i t a l i n v e s t m e n t " 0 on the o r d e r of a ,6 t o 8 p e r c e n t i n c r e a s e over c o n s t r u c t i o n c o s t s c u r r e n t l y . M a r g i n a l f i r s t - t i m e buyers may be i n c r e a s i n g l y e x c l u d e d from t h i s market and f o r c e d t o purchase o l d e r , l e s s f u e l e f f i c i e n t homes, even though they a r e l e a s t f i n a n c i a l l y equipped t o handle the i n c r e a s e d o p e r a t i n g c o s t s . 4.2.2 Length Of Home O w n e r s h i p — T i m e H o r i z o n A major problem t o be overcome i n m a r k e t i n g energy e f f i c i e n t goods i s t h e h i g h p e r s o n a l d i s c o u n t r a t e s t h a t consumers use when w e i g h i n g p r e s e n t c o s t s a g a i n s t f u t u r e b e n e f i t s t o be r e c e i v e d from an a s s e t . There i s a p s y c h o l o g i c a l p r e d i s p o s i t i o n when buying any k i n d of a p p l i a n c e or i t e m t o be a t t r a c t e d by a low p r i c e t a g w i t h o u t t h i n k i n g of a d d i t i o n a l r e a l c o s t s which may be i n v o l v e d i n owning and u s i n g the item (Steadman, p. 4 4 ) . T h i s p r e d i s p o s i t i o n c o u l d be even more pronounced i n major purchases such as a home. A c r i t i c a l c o n s t r a i n t t o the i n t r o d u c t i o n of energy "°This c o n d i t i o n w i l l be e s p e c i a l l y i m p o r t a n t on the p r a i r i e s where th e s e i n c r e a s e s w i l l make up an even g r e a t e r p o r t i o n of the t o t a l house p r i c e s . A i r - t o - a i r heat exchangers, ( c u r r e n t l y c o s t i n g $1500) and p o t e n t i a l l y , p a s s i v e s o l a r d e s i g n , c o u l d be wid e s p r e a d i n new h o u s i n g i n Regina by 1985. 57 e f f i c i e n c y f e a t u r e s i s the average l e n g t h of home ownership. The economics of the more advanced energy c o n s e r v i n g measures are s l i g h t l y improved f o r "move-up" or "move-down" b u y e r s . They are u s u a l l y more a f f l u e n t o l d e r c o u p l e s , have owned a l r e a d y , a r e aware of o p e r a t i n g c o s t s and inv e s t m e n t v a l u e , and a n t i c i p a t e , a l o n g e r p e r i o d of ownership. A l l t h e s e c o n d i t i o n s i n d i c a t e a g r e a t e r a c c e p t a n c e of f e a t u r e s w i t h l e n g t h i e r payback p e r i o d s . However, w h i l e i n c r e a s i n g energy p r i c e s w i l l d i c t a t e c o n t i n u a l l y more investment i n energy e f f i c i e n t f e a t u r e s , the l i m i t e d time h o r i z o n of many p u r c h a s e r s w i l l c o n s t r a i n the investment t o s h o r t paybacks r e l a t i v e t o those r e q u i r e d f o r a g r e a t e r s o c i a l b e n e f i t t o be a c h i e v e d . 4.2.3 A p p r a i s i n g Energy E f f i c i e n t Housing C l o s e l y r e l a t e d t o the problem c r e a t e d by s h o r t - t e r m owners i n mass-market h o u s i n g i s the u n c e r t a i n t y of r e s a l e v a l u e f o r energy e f f i c i e n t f e a t u r e s . In t h e o r y , where the v i s i b i l i t y of the energy c o n s e r v i n g f e a t u r e i s n e g l i g i b l e , and the b e n e f i t s l a r g e l y u n r e c o g n i z e d , as i s the case i n the p r e s e n t i n i t i a l s t a g e s of energy e f f i c i e n c y improvements, the buyer would l i k e l y be r e l u c t a n t t o i n v e s t any a d d i t i o n a l c a p i t a l f o r the 58 f e a t u r e s . * 1 T h i s q u e s t i o n a b l e r e s a l e v a l u e " 2 has c r e a t e d t h e p e r c e p t i o n t h a t the o r i g i n a l p u r c h a s e r i s dependent on energy c o s t s a v i n g s t o r e c o v e r h i s i n v e s t m e n t . The c o s t s of f u t u r e energy e f f i c i e n c y improvements w i l l comprise a g r e a t e r p r o p o r t i o n of the t o t a l c o n s t r u c t i o n c o s t s , and t o g e t h e r w i t h s h a r p l y h i g h e r energy p r i c e s , s h o u l d s u b s t a n t i a t e . t h e v a l u e of energy e f f i c i e n c y i n the r e s a l e market. The i n v e s t o r w i l l no l o n g e r need t o r e l y on y e a r l y o p e r a t i n g s a v i n g s t o r e c o v e r h i s i n i t i a l ; i n v e s t m e n t . In the i n t e r i m , h i s investment i n energy s a v i n g f e a t u r e s would p r o v i d e immediate r e t u r n s ( p r o f i t ) t h r o u g h reduced o p e r a t i n g e x p e n s e s . " 3 Under the s e c i r c u m s t a n c e s , the r i s k s of i n v e s t i n g i n energy c o n s e r v i n g f e a t u r e s w i l l be removed f o r p e r e n n i a l h o u s i n g movers. " 1 E v e n where t h e s e f e a t u r e s a r e v i s i b l e , as i n the case of s o l a r h e a t i n g , the buyer may be unaware t h a t the -measure i s c o s t -e f f e c t i v e , c r e a t i n g a s i m i l a r r e l u c t a n c e . 5 9 4.2.4 Energy P r i c i n g Energy p r i c e s p r o v i d e the s i g n a l f o r energy c o n s e r v i n g i n v e s t m e n t . When these p r i c e s i g n a l s a r e d i s t o r t e d , as o c c u r s w i t h c u r r e n t government energy p r i c e s u b s i d i e s , a l e s s than o p t i m a l a l l o c a t i o n of i n p u t r e s o u r c e s r e s u l t s . For example, government has an. e x p r e s s e d p o l i c y t o encourage the replacement of o i l w i t h n a t u r a l gas th r o u g h a gas p r i c e advantage. Yet c u r r e n t p r o v i n c i a l n a t u r a l gas s u b s i d i e s i n B r i t i s h Columbia of $100 m i l l i o n a n n u a l l y ( W h i t e l e y , The Vancouver Sun, p.H1) a r e , i n t h e o r y , r e d u c i n g investment i n energy e f f i c i e n c y f e a t u r e s by a s i m i l a r amount and p r o t e c t i n g c u r r e n t energy u s e r s at the expense of f u t u r e u s e r s . ••'In h i s t o r i c a l terms t h i s c i r c u m s t a n c e may be viewed as a d i r e c t t r a n s f e r of w e a l t h from the next g e n e r a t i o n t o the c u r r e n t one. The r e s u l t w i l l be a more r a p i d d e p l e t i o n of our energy r e s o u r c e s and a l e g a c y of r e s i d e n t i a l i n f r a s t r u c t u r e which w i l l be f a r below the e f f i c i e n c y s t a n d a r d s t h a t would have n o r m a l l y r e s u l t e d . ' 2 A p p r a i s i n g the r e s a l e market v a l u e of c o n v e n t i o n a l f e a t u r e s i s n e a r l y i m p o s s i b l e a t p r e s e n t . The s m a l l c a p i t a l i n c r e m e n t s of f e a t u r e s r e c e n t l y (past 3 y e a r s ) i n t r o d u c e d a re e a s i l y absorbed i n the r e - s a l e p r i c e of the home and become l o s t i n the c u r r e n t v o l a t i l e h o u s i n g markets. Moreover, the m a r k e t a b i l i t y of energy e f f i c i e n t f e a t u r e s i s d i f f i c u l t t o determine when a l l mass-market homes have v i r t u a l l y i d e n t i c a l s t a n d a r d s . " 3 0 f c o u r s e , v a l u e d e p r e c i a t i o n of f e a t u r e s w i t h a s h o r t e r u s e f u l l i f e than t h a t of the house i t s e l f would have t o be c o n s i d e r e d . None of the f e a t u r e s d e s c r i b e d i n t h i s study w i t h the p o s s i b l e e x c e p t i o n of the heat exchanger, would d e p r e c i a t e i n v a l u e more r a p i d l y than the s t r u c t u r e i t s e l f . 60 CHAPTER 5: THE SOCIAL AND INSTITUTIONAL BARRIERS .5.0 INTRODUCTION Wh i l e i n a c c u r a t e energy p r i c i n g and the s h o r t time h o r i z o n s of consumers are s i g n i f i c a n t c o n s t r a i n t s t o a c h i e v i n g g r e a t e r energy e f f i c i e n c y i n the economy, the s o c i a l a t t i t u d e s and i n s t i t u t i o n a l s t r u c t u r e s which have been shaped by decades of i n d i f f e r e n c e toward energy use a r e a l s o f o r m i d a b l e b a r r i e r s t o energy c o n s e r v i n g r e s p o n s e s . These non-economic b a r r i e r s tend t o f u r t h e r d i s t o r t economic investment t h e o r y and impede o p t i m a l c o n s e r v a t i o n responses from consumers. 5.1 THE SOCIAL AND ATTITUDINAL BARRIERS S o c i a l a t t i t u d e s toward energy c o n s e r v a t i o n r e f l e c t the a f f l u e n c e of western s o c i e t y and our i g n o r a n c e of the degree of our r e l i a n c e upon f o s s i l f u e l s . In the r e c e n t p a s t , " c o n s p i c u o u s c o n s u m p t i o n " " 4 was an a c c e p t a b l e b e h a v i o u r and even a r e l a t i v e measure of s o c i a l s t a t u s . W a s t e f u l n e s s has become so i n g r a i n e d i n our s o c i e t y t h a t i t i s h a r d l y r e c o g n i z e d by the m a j o r i t y as a d e l i n q u e n c y . Thus energy c o n s e r v a t i o n c o n t i n u e s t o r e c e i v e secondary c o n s i d e r a t i o n b e h i n d e s t a b l i s h e d l i f e s t y l e s and s o c i a l g o a l s . " " T h i s term i s commonly used t o d e s c r i b e the tendency of N o r t h Americans t o c o n s c i o u s l y w a s t e . r e s o u r c e s i n abundance and which a r e t h e r e f o r e r e l a t i v e l y cheap. 61 5.1.1 A e s t h e t i c Appeal Of The Home Appearance remains a v i t a l c o n s i d e r a t i o n i n h o u s i n g d e s i g n , e s p e c i a l l y f o r the s i n g l e - f a m i l y house b u i l d e r . The Energy Showcase i n Saskatoon proved t h a t energy e f f i c i e n c y can be i n c r e a s e d s u b s t a n t i a l l y above p r e v a i l i n g mass-market s t a n d a r d s w i t h m i n i m a l i n f l u e n c e on the e x t e r i o r d e s i g n of the home. However, a t some p o i n t i n the p r o c e s s of i m p r o v i n g energy e f f i c i e n c y , maintenance of a t r a d i t i o n a l d e s i g n w i l l c o n f l i c t w i t h the i n t r o d u c t i o n of c e r t a i n energy s a v i n g d e s i g n f e a t u r e s . At t h i s p o i n t the b u i l d e r must weigh the r e l a t i v e importance of each i n m a r k e t i n g the home. A l t h o u g h the use of si m p l e energy c o n s e r v i n g d e s i g n would have an impact b o t h on e x t e r n a l f e a t u r e s ( i . e . the m i n i m i z a t i o n of n o r t h - f a c i n g g l a z i n g ) and i n t e r n a l f e a t u r e s ( i . e . the e l i m i n a t i o n of v a u l t e d c e i l i n g s ) , the a d d i t i o n of g r e a t e r p a s s i v e s o l a r d e s i g n w i l l have the most p r o f o u n d e f f e c t on home d e s i g n and appearance. In i t s more advanced s t a t e , p a s s i v e s o l a r d e s i g n r e q u i r e s a s i g n i f i c a n t break from the t r a d i t i o n a l s t y l e d home. O f t e n s o l a r d e v i c e s such as trombe w a l l s and s o l a r i u m s r e q u i r e u nusual a r c h i t e c t u r a l d e s i g n , or may themselves . be a e s t h e t i c a l l y d i s p l e a s i n g t o home p u r c h a s e r s c o n d i t i o n e d t o p r e f e r c o n v e n t i o n a l l y s t y l e d homes. In a d d i t i o n , t h e r e c o u l d be a n e g a t i v e response from s u r r o u n d i n g r e s i d e n t s . These r e a c t i o n s a r i s e from an u n f a m i l i a r i t y w i t h the a r c h i t e c t u r a l forms, c o n t r a s t e d t o the u s u a l l y homogeneous 62 n a t u r e of the t r a d i t i o n a l r e s i d e n t i a l n e i g h b o u r h o o d . " 5 L i k e f a s h i o n s , the i n i t i a l u n f a m i l i a r i t y of the a e s t h e t i c f e a t u r e s , and a r e l u c t a n c e t o s a c r i f i c e t r a d i t i o n a l a r c h i t e c t u r a l forms and i n t e r i o r d e s i g n s , p r e s e n t s a s h o r t - t e r m b a r r i e r t o p u b l i c a c c e p t a n c e . 5.1.2 Energy Awareness And Housing U n i t O p e r a t i o n The o p e r a t i o n of the house has been shown t o be the most i m p o r t a n t s i n g l e f a c t o r i n d e t e r m i n i n g i t s r a t e of energy consumption, p r o d u c i n g d i s c r e p a n c i e s i n energy use of 50 p e r c e n t or more i n i d e n t i c a l homes i n s i m i l a r l o c a t i o n s (Socolow, p.212). There i s a fundamental and p e r v a s i v e i n s e n s i t i v i t y t o the amount of energy we use, and a l a c k of awareness of where and how the l a r g e s t s a v i n g s can be a t t a i n e d . As a r e s u l t , the d i f f u s i o n of knowledge on energy c o n s e r v a t i o n , and the a d o p t i o n of a c o n s e r v e r e t h i c i n s o c i e t y a r e as v i t a l t o the achievement of g r e a t e r energy c o n s e r v a t i o n i n the r e s i d e n t i a l s e c t o r as i s b u i l d i n g energy e f f i c i e n t h o u s i n g . For example, the most t e c h n o l o g i c a l l y advanced energy e f f i c i e n t house w i l l o f f e r the o ccupants no c o s t s a v i n g s over a c o n v e n t i o n a l home i f the windows ar e kept open w i t h the t h e r m o s t a t s e t f o r s a u n a - l i k e c o n d i t i o n s . As energy e f f i c i e n t h o u s i n g becomes more s o p h i s t i c a t e d and p a s s i v e s o l a r d e s i g n becomes more p o p u l a r , homeowners w i l l be r e q u i r e d t o be more aware of the energy " 5 F o r example, the Broadway K i t s u n Co-op i n Vancouver, which i n c o r p o r a t e s a s o l a r c o l l e c t i n g w a l l u s i n g g o l d i n s u l a t i n g c u r t a i n s f a c i n g a major a r t e r i a l s t r e e t , has e n c o u n t e r e d n e g a t i v e p u b l i c r e a c t i o n . T h i s i s one example of how s o l a r a r c h i t e c t u r e has c r e a t e d an image of a " s o l a r b u i l d i n g " i n the minds of the p u b l i c , e i t h e r p o s i t i v e or n e g a t i v e (Droettboom). 63 b a l a n c e i n the home i n o r d e r t o i n t e r a c t w i t h i t through the use of i n s u l a t i n g s h u t t e r s , v e n t i l a t i o n systems and o t h e r m e c h a n i c a l d e v i c e s . I t i s the human a s p e c t of energy c o n s e r v a t i o n which i s most d i f f i c u l t t o i n f l u e n c e . Consumer e d u c a t i o n programs, d e m o n s t r a t i o n p r o j e c t s , and most i m p o r t a n t l y , , h i g h e r energy p r i c e s , w i l l produce a g r e a t e r energy c o n s c i o u s n e s s . Design and o p e r a t i o n of h o u s i n g w i l l both be improved. S t i l l , i t w i l l t ake time f o r the changing r e a l i t y of energy use t o overcome consumer h a b i t s b u i l t up over decades of energy and r e s o u r c e mismanagement. 5.1.3 Energy Awareness Of Housing D e s i g n e r s I n n o v a t i o n i n new h o u s i n g d e s i g n i s l a r g e l y the r e s p o n s i b i l i t y of d e s i g n p r o f e s s i o n a l s and a r c h i t e c t s . A l t h o u g h , i n the h o u s i n g f i e l d , t h ey u s u a l l y o p e r a t e under the c o n s t r a i n t of t r a n s l a t i n g c l i e n t ' s d e s i r e s i n t o b u i l t form, d e s i g n e r s have the r e s p o n s i b i l i t y of e x e r c i s i n g p e r s o n a l and p r o f e s s i o n a l judgement t o produce the optimum s o l u t i o n t o a g i v e n problem. Thus, the d e s i g n e r i s a c c o u n t a b l e f o r the f i n a l d e s i g n which r e s u l t s and c o u l d have a major i n f l u e n c e on i t s energy consumption. D e s p i t e the f a c t t h a t the amount of d e s i g n e d h o u s i n g i s m i n i m a l ( l e s s than 10 p e r c e n t ) , i n d i r e c t i n f l u e n c e s and d i f f u s i o n of t e c h n i q u e s and b u i l d i n g form advanced by a group of d e s i g n p r o f e s s i o n a l s would have s u b s t a n t i a l p o t e n t i a l f o r i m p r o v i n g energy e f f i c i e n c y on a broad s c a l e . Through s u c c e s s f u l i n n o v a t i o n i n the custom d e s i g n f i e l d , a new image of h o u s i n g c o u l d emerge and become 64 t r a n s p l a n t e d t o the mass-market through s t o c k p l a n s . Two b a r r i e r s p r e v e n t t h i s o c c u r r e n c e . The f i r s t i s t h a t d e s i g n e r s , l i k e b u i l d e r s , a r e p r i m a r i l y concerned w i t h the d e s i r e s of c l i e n t s . At p r e s e n t , the m a j o r i t y of c l i e n t s remain more concerned w i t h a e s t h e t i c s than w i t h energy use. T h e r e f o r e , a e s t h e t i c c o n s i d e r a t i o n s may o v e r r i d e energy c o n s i d e r a t i o n s even i f t hese are i n c o r p o r a t e d i n the d e c i s i o n p r o c e s s by an energy aware d e s i g n e r . S e c o n d l y , few a r c h i t e c t / d e s i g n e r s are as y e t energy c o n s c i o u s t h e m s e l v e s . The m a j o r i t y of a r c h i t e c t s and h o u s i n g d e s i g n e r s p r a c t i s i n g today were educated l o n g b e f o r e the e r a of e n e r g y - c o n s c i o u s n e s s . Even tod a y , a r c h i t e c t u r e and d e s i g n s c h o o l s o f t e n t a k e an i n c o n s i s t e n t approach t o energy c o n s e r v a t i o n which r e f l e c t s the l a c k of u n d e r s t a n d i n g and commitment p r e v a l e n t i n s o c i e t y a t l a r g e . Thus, i n s t e a d of i n f l u e n c i n g c l i e n t s and the g e n e r a l p u b l i c , e d u c a t i n g and a d v a n c i n g the case of energy e f f i c i e n t h o u s i n g , the t y p i c a l a r c h i t e c t - d e s i g n e r i s i n a p p r e c i a b l y more knowledgeable than the layman ( C o l e and Weidner, p . 8 ) . 5.2 THE INSTITUTIONAL AND REGULATORY BARRIERS O r g a n i z a t i o n s and a g e n c i e s , both p u b l i c and p r i v a t e , i n v o l v i n g e v e r y a s p e c t of h o u s i n g d e s i g n , c o n s t r u c t i o n and m a r k e t i n g , e v o l v e d over a l e n g t h y p e r i o d d u r i n g which energy use was not a c o n c e r n . R e g u l a t i o n s i s s u e d and e n f o r c e d by t h e s e groups o r i g i n a t e d decades ago and were t r a n s f o r m e d over the y e a r s t o meet new problems and c h a n g i n g c o n d i t i o n s of urban development. Only r e c e n t l y has the c o n s e r v a t i o n of energy been 65 c o n s i d e r e d a l e g i t i m a t e c o n c e r n , and t h u s s i g n i f i c a n t b a r r i e r s s t i l l p e r s i s t . In f a c t , i n s t i t u t i o n a l s t r u c t u r e s and r e g u l a t i o n , • and s o c i a l e x p e c t a t i o n s are o f t e n so i n t e r t w i n e d t h a t an imposing and r e s i l i e n t b a r r i e r i s formed. Such an arrangement i s p r e s e n t i n r e s i d e n t i a l development. O'Riordan and M i g a n i have e x p l a i n e d the o p e r a t i o n of t h i s complimentary arrangement: In our c u l t u r e , the w i d e s p r e a d image i s of s i m i l a r houses s e t on e q u a l l y s i z e d p l o t s of l a n d , a l l w i t h a f r o n t door and p i c t u r e window f a c i n g the s t r e e t , r e g a r d l e s s of o r i e n t a t i o n and o t h e r m i c r o c l i m a t i c c o n s i d e r a t i o n s . T h i s image has become c o d i f i e d i n the b u i l d i n g codes and z o n i n g o r d i n a n c e s which guide new c o n s t r u c t i o n , c r e a t i n g a c i r c u l a r p r o c e s s i n which r e g u l a t i o n s and p o p u l a r e x p e c t a t i o n r e i n f o r c e one another (p. 13). 5.2.1 B u i l d i n g Codes In the i n i t i a l s t a g e s of r a i s i n g energy e f f i c i e n c y through c o n s t r u c t i o n t e c h n i q u e s , r e g u l a t i o n s g o v e r n i n g r e s i d e n t i a l development a r e not major impediments. In the advanced s t a g e s of energy e f f i c i e n c y improvements n e c e s s i t a t i n g d e s i g n changes, b u i l d i n g codes can a c t as b oth a b a r r i e r or s i m p l y a d i s i n c e n t i v e . E s p e c i a l l y when p a s s i v e s o l a r d e s i g n i s i n c o r p o r a t e d , f l e x i b i l i t y i s r e q u i r e d i n r e g u l a t i o n s t o a l l o w and even encourage i n n o v a t i o n . C u r r e n t b u i l d i n g codes a r e p r i m a r i l y p r e s c r i p t i v e ~ - s t a t i n g minimum s t a n d a r d s and methods of c o n s t r u c t i o n which must be employed. Many new t e c h n i q u e s and c o n s t r u c t i o n methods y e t t o be employed i n mass-market h o u s i n g may d e v i a t e from s t a n d a r d b u i l d i n g p r a c t i c e s . I f t h e s e methods (such as new t y p e s of w a l l c o n s t r u c t i o n ) were i n t r o d u c e d , they 66 c o u l d r e s u l t i n d e l a y and l o s t money f o r the b u i l d e r d u r i n g the a p p r o v a l p r o c e s s . Delay of a p r o j e c t i s a p a r t i c u l a r i l y i n t i m i d a t i n g p r o s p e c t f o r a b u i l d e r d u r i n g c u r r e n t r e c o r d h i g h r a t e s of f i n a n c i n g . Hence, a p o s s i b l y v a l u a b l e i n n o v a t i o n would be d i s c o u r a g e d , t r a d i t i o n a l b u i l d i n g methods encouraged, and the s t a t u s quo i n the c o n s t r u c t i o n i n d u s t r y m a i n t a i n e d . The a l t e r n a t i v e t o p r e s c r i p t i v e codes i s t o p r o v i d e i n c r e a s e d a l l o w a n c e f o r i n n o v a t i o n by p r e s c r i b i n g performance s t a n d a r d s . These r e g u l a t i o n s do not s p e c i f y t e c h n i q u e s of c o n s t r u c t i o n or i n s u l a t i o n v a l u e s , but maximum a l l o w a b l e energy use s t a n d a r d s which must be met or b e t t e r e d f o r a p a r t i c u l a r s o l u t i o n t o be a c c e p t a b l e . The major d i f f i c u l t y w i t h performance codes a r i s e s i n p o l i c i n g them. B u i l d i n g i n s p e c t o r s would have t o be r e - t r a i n e d and a d m i n i s t r a t i o n c o s t s would r i s e i n o r d e r t o a d e q u a t e l y e n f o r c e such a f l e x i b l e code. 5.2.2 Zoning - Development C o n t r o l Bylaws Together w i t h the s u b s t a n t i a l impact z o n i n g and development c o n t r o l bylaws have on the energy e f f i c i e n c y of l a n d use p r a c t i c e s , t h e s e r e g u l a t i o n s c o n s t r a i n s i t i n g c o n f i g u r a t i o n s and hence i n h i b i t the s t r u c t u r e from r e s p o n d i n g t o i t s environment. The p o t e n t i a l f o r s o l a r h e a t i n g may be p a r t i c u l a r l y a f f e c t e d by z o n i n g c o n t r o l s which p r e s c r i b e minimum f r o n t , r e a r and s i d e y a r d s . On a l a r g e r s c a l e , i n s e n s i t i v e s u b d i v i s i o n d e s i g n s e v e r e l y c u r t a i l s the p r o p o r t i o n of l o t s s u i t a b l e f o r p a s s i v e s o l a r h e a t i n g . The concept . of " s o l a r r i g h t s " or r i g h t t o l i g h t i s r e l a t i v e l y new, and c u r r e n t z o n i n g bylaws do not p r o t e c t the 67 r i g h t s of an owner of a s o l a r - h e a t e d house t o r e t a i n f u l l a c c e s s t o t he sun. A c i r c u m s t a n c e as common as a nei g h b o r p l a n t i n g v e g e t a t i o n c o u l d i n t e r f e r e w i t h the s u n l i g h t r e c e i v e d by the s o l a r - h e a t e d home. In t h i s way a s o l a r - h e a t e d house c o u l d l o s e i t s " f u r n a c e " (Rogoza, p. 8 ) . Such an o c c u r r e n c e c o u l d be c a t a s t r o p h i c where p a s s i v e s o l a r energy s u p p l i e s 50 p e r c e n t or more of the t o t a l space h e a t i n g demand. W i t h no l e g a l r e c o u r s e a v a i l a b l e t o r e q u i r e removal of an o b s t r u c t i o n , the owner would be f a c e d w i t h i n s t a l l i n g an a l t e r n a t e source of h e a t i n g a t c o n s i d e r a b l e expense. T h i s u n c e r t a i n t y has y e t t o become v i t a l c o n c e r n because of the l i m i t e d e x p e r i e n c e w i t h p a s s i v e s o l a r . As ' i t becomes more common, c o n f l i c t s of t h i s n a t u r e w i l l i n c r e a s e and the l e g a l r i g h t s of s o l a r home owners w i l l have t o be e s t a b l i s h e d . 5.2.3 A d d i t i o n a l I n s t i t u t i o n a l And P e r c e p t u a l B a r r i e r s More s u b t l e i n s t i t u t i o n a l b a r r i e r s w i l l assume a g r e a t e r importance as energy e f f i c i e n t h o u s i n g becomes more common. For example, o u t s i d e b u i l d i n g d i m e n s i o n s , used i n c a l c u l a t i n g t a x assessment as w e l l as a l l o w a b l e f l o o r space, a re i n c r e a s e d t h r o u g h u s i n g c e r t a i n t y p e s of energy c o n s e r v i n g w a l l c o n s t r u c t i o n . T h i s c i r c u m s t a n c e c o u l d r e s u l t i n i n c r e a s e d t a x e s or d e c r e a s e d i n t e r i o r f l o o r space f o r the energy e f f i c i e n t home owner. There a r e a l s o p e r c e p t u a l b a r r i e r s t o c o n s e r v i n g energy i n the r e s i d e n t i a l s e c t o r which a r e r e i n f o r c e d by i n s t i t u t i o n a l arrangements. B i l l i n g f o r energy used i n the home i s u s u a l l y made every 2 months by many Canadian u t i l i t y companies. Thus 68 t h e r e i s a s u b s t a n t i a l l a g between the time of energy use and the time of payment, making i t d i f f i c u l t f o r the homeowner t o observe the e f f e c t s of h i s c o n s e r v a t i o n e f f o r t s . Many u t i l i t i e s e x a s p e r a t e t h i s problem by u s i n g "Equal Payment P l a n " b i l l i n g , whereby the average amount of f u e l used i n a year i s d i v i d e d i n t o e q u a l payments. In t h i s way, the b i l l p a i d f o r each month does not r e p r e s e n t the amount of f u e l a c t u a l l y used i n t h a t month but c o u l d be e i t h e r l e s s or more. T h i s p r a c t i c e saves u t i l i t i e s money and i s more c o n v e n i e n t f o r . t h e consumer who would o t h e r w i s e be f a c e d w i t h w i d e l y v a r y i n g b i - m o n t h l y b i l l s . U n f o r t u n a t e l y , t h i s method.of b i l l i n g does not r a i s e the energy c o n s c i o u s n e s s of consumers and i n f a c t c o u l d r e t a r d i t . 5.3 CONCLUSION The f o r e g o i n g s o c i a l and i n s t i t u t i o n a l c o n s t r a i n t s are e n t r e n c h e d i n the h o u s i n g i n d u s t r y , i n f l u e n c i n g the a t t i t u d e s and responses of b u i l d e r s and consumers t o the i d e a of energy c o n s e r v a t i o n . These a t t i t u d e s and responses a r e not s t a t i c but r e f l e c t the g r a d u a l r e a l i z a t i o n by a l l Canadians t h a t energy c o n s e r v a t i o n i s now a l e g i t i m a t e c o n c e r n . Most s o c i a l b a r r i e r s w i l l g r a d u a l l y d i s s o l v e under the p r e s s u r e s of h i g h e r energy p r i c e s . The most o b v i o u s r e g u l a t o r y b a r r i e r s a r e under government c o n t r o l and s h o u l d not r e q u i r e some form of c r i s i s t o j u s t i f y change. 69 CHAPTER 6: PROBLEMS OF INCREASING ENERGY EFFICIENCY FROM THE BUILDER'S PERSPECTIVE 6.0 INTRODUCTION The l e v e l of energy e f f i c i e n c y i n the mass-market home r e f l e c t s two p r i n c i p a l i n f l u e n c e s — g o v e r n m e n t r e g u l a t i o n and consumer demand. These two i n f l u e n c e s a r e i n t u r n shaped by energy p r i c e s , l i f e s t l y e , and the p e r c e p t i o n of the energy problem. The p e r s p e c t i v e taken by t h i s i n v e s t i g a t i o n i s t h a t the house b u i l d e r p l a y s a p i v o t a l r o l e i n r e s p o n d i n g t o the s e i n f l u e n c e s . A t o t a l of 17 i n t e r v i e w s were conducted i n c l u d i n g two s m a l l , two medium, and t h r e e l a r g e b u i l d e r s i n each of Regina and Vancouver. Two custom home b u i l d e r s i n Vancouver were i n t e r v i e w e d t o a s s e s s the d i f f e r e n c e s i n the study parameters f o r t h i s submarket. A d d i t i o n a l l y , an energy e f f i c i e n t s p e c i a l t y b u i l d e r was i n t e r v i e w e d t o compare h i s a t t i t u d e s and problems w i t h t h o s e of the mass-market b u i l d e r s and t o g a i n an i n s i g h t i n t o t he study problem from a b u i l d e r a t the f o r e f r o n t of market i n n o v a t i o n . The i n t e r v i e w q u e s t i o n s (see Appendix 1) f o c u s e d on the b u i l d e r ' s knowledge of the energy c o n s e r v i n g t e c h n i q u e s , h i s p e r c e p t i o n of t h e i r t e c h n i c a l and c o s t - e f f e c t i v e n e s s , h i s p r e s e n t s t a n d a r d s and reasons f o r r e c e n t i n c r e m e n t s , the need f o r energy c o n s e r v a t i o n on a n a t i o n a l s c a l e , and the m a r k e t a b i l i t y of the f e a t u r e s . A t a b u l a r summary of the b u i l d e r r e a c t i o n s t o key q u e s t i o n s i s g i v e n i n T a b l e s 6.3 and 6.4. 70 6.1 RECOGNITION OF THE ENERGY PROBLEM The b u i l d e r ' s a t t i t u d e 4 . 6 toward the energy problem i n f l u e n c e s h i s p e r s o n a l commitment t o i n c r e a s i n g the energy e f f i c i e n c y of h i s homes and h i s r e c o g n i t i o n of the market o p p o r t u n i t i e s f o r d o i n g so. The p r e v a i l i n g a t t i t u d e of the m a j o r i t y of b u i l d e r s i n t e r v i e w e d was t h a t the "energy problem", as r e p o r t e d i n the media and by government was e x a g g e r a t e d . B u i l d e r s i n t e r v i e w e d i n Vancouver i n p a r t i c u l a r , e x p r e s s e d t h i s f e e l i n g , and f r e q u e n t l y s u b s t a n t i a t e d t h e i r views by m e n t i o n i n g the ample s u p p l y of energy r e s o u r c e s i n B r i t i s h Columbia. The m i l d c l i m a t e on the west c o a s t undoubtedly c o n t r i b u t e d t o a p e r c e p t i o n , t h a t the p o t e n t i a l f o r c o n s e r v i n g energy i s i n s i g n i f i c a n t . S e v e r a l Vancouver b u i l d e r s c a n d i d l y a d m i t t e d t h a t they were i n d i f f e r e n t toward n a t i o n a l energy c o n c e r n s or s i m p l y d i d not have time t o keep a b r e a s t of energy news and t h e r e f o r e c o u l d not i n t e l l i g e n t l y comment on the s e r i o u s n e s s of the energy problem. Of the t h r e e b u i l d e r s who were more aware of an energy problem, two, b o t h i n R e g i n a , appeared g e n u i n e l y concerned or committed t o i n c r e a s i n g the energy e f f i c i e n c y of t h e i r houses. The s p e c i a l t y b u i l d e r was o n l y c o n s t r u c t i n g s u b s t a n t i a l l y more energy e f f i c i e n t houses, than those of the c o n v e n t i o n a l b u i l d e r s . The o t h e r f i r m was managed by the c u r r e n t v i c e -p r e s i d e n t of HUDAC. H i s i n v o l v e m e n t w i t h the HUDAC Energy Saver 4 6 T h e concept of a b u i l d e r a t t i t u d e or commitment i s not as p r e c i s e i n major b u i l d i n g f i r m s where many i n d i v i d u a l a t t i t u d e s and i d e a s may a f f e c t the d e c i s i o n - m a k i n g p r o c e s s . N e v e r t h e l e s s , the a t t i t u d e s and p e r c e p t i o n s of the s e n i o r managers would be a t l e a s t p a r t l y e v i d e n t i n the energy e f f i c i e n c y of the f i r m ' s p r o d u c t s . 71 Program, was r e f l e c t e d i n the n o t i c e a b l y h i g h e r energy e f f i c i e n c y s t a n d a r d s of h i s homes. Two o t h e r major b u i l d e r s , one i n Vancouver and one i n R e g i n a , (both s u b s i d a r i e s of the same c o r p o r a t i o n ) have r e c e n t l y begun t o i n c o r p o r a t e , more energy c o n s e r v i n g f e a t u r e s . The Regina b u i l d e r a d m i t t e d t h a t the measures were i n c l u d e d s o l e l y as a m a r k e t i n g c o n s i d e r a t i o n , w h i l e the Vancouver b u i l d e r contended t h a t t h i s was a c o n s i d e r a t i o n , but e q u a l l y i m p o r t a n t was the o b l i g a t i o n of b u i l d e r s t o be r e s p o n s i v e t o the need f o r energy c o n s e r v a t i o n . " 7 There was a d i s c e r n a b l e range of knowledge of Canada's energy s i t u a t i o n by the r e m a i n i n g 13 b u i l d e r s , and a consequent range of views toward energy c o n s e r v a t i o n . In g e n e r a l , the l a r g e r b u i l d e r s were more knowledgeable of the n a t i o n a l energy p i c t u r e and more concerned w i t h the energy e f f i c i e n t s t a n d a r d s of t h e i r homes. Undoubtedly, the i n c e n t i v e f o r t h i s c o n c e r n i s the r e a l i z a t i o n t h a t energy e f f i c i e n c y i s i n c r e a s i n g l y becoming a c o n s i d e r a t i o n of the h o u s i n g consumer and government. I t t h e r e f o r e makes good b u s i n e s s sense t o be c o g n i z a n t of where the a t t e n t i o n s of each a r e s h i f t i n g . T h i s was the o v e r r i d i n g r e a s o n i n g b e h i n d the HUDAC Energy Saver P r o g r a m — a r e a l i z a t i o n of s h i f t i n g consumer d e s i r e s and a f e a r of government i n t e r v e n t i o n . S m a l l b u i l d e r s a r e a s p e c i a l case s i n c e they a r e more Commitment toward energy c o n s e r v a t i o n i s o f t e n d i f f i c u l t t o e s t a b l i s h i n the c o u r s e of an i n t e r v i e w . However, g i v e n the n a t u r e of the mass-market h o u s i n g i n d u s t r y , i t - seems s a f e t o c o n c l u d e t h a t m a r k e t i n g c o n s i d e r a t i o n s c o n t r i b u t e g r e a t l y t o the f i n a l d e c i s i o n , p a r t i c u l a r l y f o r the major b u i l d i n g f i r m s who m a i n t a i n s o p h i s t i c a t e d m a r k e t i n g and s a l e s teams. 72 detached from the mainstream of the ho u s i n g i n d u s t r y and a r e v i r t u a l l y n o n - e x i s t e n t among the membership of HUDAC. Four s m a l l b u i l d e r s " 8 were i n t e r v i e w e d . Three e x p r e s s e d a t o t a l l a c k of c oncern w i t h energy, e i t h e r i n the c o n t e x t of the new h o u s i n g i n d u s t r y , or i n n a t i o n a l terms. In f a c t , the s m a l l e s t b u i l d e r s had l i t t l e c o n c e p t i o n of an "energy problem". The a t t i t u d e s of the s m a l l b u i l d e r s can be t r a c e d t o the na t u r e of t h e i r m a r k e t i n g which i s u s u a l l y a s i m p l e word-of-mouth recommedation. They are t h e r e f o r e not a t the f o r e f r o n t of i n n o v a t i o n i n ho u s i n g which u s u a l l y proceeds hand-in-hand w i t h an o r g a n i z e d m a r k e t i n g e f f o r t . S m a l l b u i l d e r s i n g e n e r a l do not appear o u t w a r d l y concerned w i t h f u t u r e changes i n the i n d u s t r y e i t h e r i n m a r k e t i n g , h o u s i n g d e s i g n or c o n s t r u c t i o n . I f house s a l e s a r e b r i s k , s m a l l b u i l d e r s e s p e c i a l l y have no time or i n c e n t i v e t o improve b u i l d i n g s t a n d a r d s . When the market i s slow, no b u i l d e r has the i n c l i n a t i o n , or the r e s o u r c e s t o assume the r i s k i n h e r e n t i n i n c r e a s i n g energy e f f i c i e n c y . F u t u r e c o n d i t i o n s , e s p e c i a l l y t h o s e which a r e the s u b j e c t of t h i s s t u d y , c o u l d i n c r e a s e the r a t e of i n n o v a t i o n i n the h o u s i n g i n d u s t r y and a d v e r s e l y a f f e c t the s u c c e s s of the s m a l l b u i l d e r . T h i s p o s s i b i l i t y was mentioned by s e v e r a l l a r g e r b u i l d e r s . Commitment and awareness of b u i l d e r s r e l a t e d t o energy e f f i c i e n c y i n h o u s i n g , a r e d i f f i c u l t t o measure by d i r e c t q u e s t i o n i n g . T h e i r energy e f f i c i e n c y s t a n d a r d s and concern w i t h the amount of energy consumed i n t h e i r homes c o u l d be b e t t e r i n d i c a t o r s . " 8 F o r the purposes of t h i s s t u d y , a s m a l l b u i l d e r was d e f i n e d as one who c o n s t r u c t s 20 houses or l e s s a n n u a l l y . 73 6.2 EMPHASIS ON ENERGY EFFICIENCY ' 6.2.1 Standards Of B u i l d e r s I n t e r v i e w e d In g e n e r a l , the i n s u l a t i o n s t a n d a r d s c u r r e n t l y employed by b u i l d e r s d i d not v a r y g r e a t l y w i t h i n e i t h e r the Vancouver or Regina a r e a s , a l t h o u g h , u n d e r s t a n d a b l y , s t a n d a r d s between these a r e a s d i f f e r e d c o n s i d e r a b l y ( T a b l e s 6.1 and 6.2). a. Vancouver The - l a r g e s t d i f f e r e n c e w i t h i n the Vancouver a r e a i s seen i n the lower w a l l and c e i l i n g s t a n d a r d s of b u i l d e r 1, a s m a l l b u i l d e r . The s t a n d a r d s of b u i l d e r 2 a r e s l i g h t l y h i g h e r ' then the t y p i c a l s m a l l b u i l d e r r e f l e c t i n g t h i s b u i l d e r ' s h i s t o r y of u s i n g CMHC programs. T e l e p h o n e . c o n v e r s a t i o n s w i t h s e v e r a l o t h e r s m a l l s i z e d b u i l d e r s c o n f i r m e d t h a t t h e s t a n d a r d s of b u i l d e r 1 were more t y p i c a l . B u i l d e r 7 was one of o n l y two b u i l d e r s i n the Vancouver a r e a c u r r e n t l y i n c r e a s i n g the a i r - t i g h t n e s s of a i r - v a p o u r b a r r i e r s . A d d i t i o n a l l y , t h i s b u i l d e r i s t e s t i n g the market a c c e p t a n c e of i n c r e a s e d w a l l i n s u l a t i o n by c o n s t r u c t i n g 21 homes w i t h 2x6 i n c h s t u d s a l l o w i n g an R v a l u e of 20 i n s t e a d of 14. T a b l e 6.1 E n e r g y E f f i c i e n c y S t a n d a r d s * o f V a n c o u v e r B u i l d e r s I n t e r v i e w e d B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r 1 2 1 3 4 5 6 7 83 9 3 A p p r o x . A n n u a l No. o f Homes 10 15 100 200 150 200 200 15 50 C u r r e n t l y A b o v e G r a d e 10 14 14 14 14 14 142 14 14 1979 W a l l s 10 14 14 7 14 10 7 14 14 1976 7 4 7 7 n/a- 8 7 7 7 C u r r e n t l y 20 28 28 28 28 28 28 28 20 1979 C e i l i n g s 20 28 28 20 20 12 12 28 20 1976 12 - 12 15 n/a 12 12 12 12 C u r r e n t l y B a s e m e n t 7 7 7 7 7 None 5 None 5 1979 C r a w l 7 7 7 7 7 None 5 None None 1976 S p a c e 7 - None 7 n/a None None None None C u r r e n t l y None None 9 7 No s l a b None 9 None None 1979 1976 S l a b s on G r a d e C o n s t r u c t e d C o n s t r u c t e d 9 9 " 7 n/ a 7 n/a C o n s t r u c t e d None C o n s t r u c t e d C o n s t r u c t e d C o n s t r u c t e d C u r r e n t l y D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e 1979 Window G l a z i n g D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e 1976 S i n g l e S i n g l e S i n g l e n / a S i n g l e S i n g l e S i n g l e S i n g l e A i r - v a p o u r 2 m i l . 2 n i l . 2 m i l . 4 n i l . 2 m i l . 2 m i l . 4 m i l . 4 m i l . 2 m i l . B a r r i e r No e n e r g y Some e n e r g y No e n e r g y No e n e r g y No e n e r g y No e n e r g y Some e n e r g y No e n e r g y No e n e r g y R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n - R e l a t e d c o n -s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s E l e c t r o n i c I g n i t i o n No No No No No Ye s Yes No No S e t - B a c k T h e r m o s t a t No No No No No •; Yes Yes No No * A l l f i g u r e s a r e I m p e r i a l R v a l u e s . 1) C o n s t r u c t e d e x c l u s i v e l y u n d e r N.H.A. f i n a n c i n g i n t h e p a s t , h e n c e h i g h e r s t a n d a r d s t h a n t y p i c a l s m a l l b u i l d e r . 2) C u r r e n t l y o f f e r i n g 2 x 6 w a l l ( R 2 0 ) i n one V a n c o u v e r l o c a t i o n . 3) C u s t o m home b u i l d e r s . 4) Wot i n o p e r a t i o n . n / a ) Not a v a i l a b l e . 75 In Vancouver, a s i g n i f i c a n t p o r t i o n of the. market i s f o r custom homes which c h a r a c t e r i s t i c a l l y c o s t anywhere from $10 t o $30 more per square f o o t t o c o n s t r u c t ($100 t o $300 per square meter) than the s t a n d a r d mass-market home. They are c o n s e q u e n t l y more l u x u r i o u s , and a r e g e n e r a l l y b u i l t f o r a s p e c i f i c , r a t h e r than an average consumer. Table 6.1 i l l u s t r a t e s t h a t the o n l y v a r i a t i o n i n the custom b u i l d e r ' s s t a n d a r d s i s the absence of c r a w l s p a c e i n s u l a t i o n i n the homes of b u i l d e r 8 and the reduced c e i l i n g R v a l u e . u s e d by b u i l d e r 9. T h i s l a t t e r c i r c u m s t a n c e i s p a r t i a l l y e x p l a i n e d by t h i s b u i l d e r ' s common use of a v a u l t e d c e i l i n g which r e q u i r e s a more d i f f i c u l t c o n t r u c t i o n t e c h n i q u e i n o r d e r t o meet the R28 s t a n d a r d . Both custom home b u i l d e r s i n t e r v i e w e d agreed t h a t t h e r e was n e g l i g i b l e i n t e r e s t by custom home buyers i n energy r e l a t e d f e a t u r e s . The most p r o b a b l e e x p l a n a t i o n f o r t h i s i s t h a t custom home p u r c h a s e r s c o n c e r n themselves more e x c l u s i v e l y w i t h a e s t h e t i c s , and a r e g e n e r a l l y more a f f l u e n t , hence can a f f o r d t o be unconcerned w i t h h e a t i n g c o s t s . b. Regina The Regina b u i l d e r s i n t e r v i e w e d demonstrated a s i m i l a r tendency t o u n i f o r m i n s u l a t i o n v a l u e s , b oth c u r r e n t l y and h i s t o r i c a l l y , i l l u s t r a t i n g t h a t the c o m p e t i t i v e a s p e c t of the h o u s i n g market. W i t h two e x c e p t i o n s , o n l y minor v a r i a t i o n was p r e s e n t between most b u i l d e r s , as shown i n T a b l e 6.2. B u i l d e r 17 b u i l d s o n l y energy e f f i c i e n t houses, i n c o r p o r a t i n g h i g h e r i n s u l a t i o n v a l u e s and o t h e r unique f e a t u r e s i n b o t h d e s i g n and c o n s t r u c t i o n . B u i l d e r 16 c o n s t r u c t s homes which m a i n t a i n the 76 outward appearance of a c o n v e n t i o n a l home, w h i l e i n c o r p o r a t i n g e f f i c i e n c y s t a n d a r d s t h a t a r e n o t i c e a b l y h i g h e r than those of b u i l d e r s 10 t h r o u g h 15. The major d i f f e r e n c e between s m a l l and l a r g e r b u i l d e r s i s in. the a t t e n t i o n g i v e n i n s t a l l a t i o n of the a i r - v a p o u r b a r r i e r (Table 6.2). T a b l e 6.2 E n e r g y E f f i c i e n c y S t a n d a r d s * o f R e g i n a B u i l d e r s I n t e r v i e w e d B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r 10 11 12 13 14 15 16 17 A p p r o x . a n n u a l n o . Homes 6 20 30 50 100 200 60. 15 C u r r e n t l y A b o v e G r a d e 20 20 20 20 20 20 2 0 4 30 1979 W a l l s 20 14 14 20 14 14 20 40 1976 __6 10 10 10 — 10 14 — C u r r e n t l y 40 40 35 35 35 40 40 40 1979 C e i l i n g s 40 20 20 20 35 20 40 60 1976 — 20 20 20 — 12 20 — C u r r e n t l y B a s e m e n t 1 2 1 None None p None 1 21 ' None 1? 12 1979 F o u n d a t i o n W a l l s None None None None 1 21 None 1 2 1 5 1976 — None None None — None No --C u r r e n t l y Window D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e T r i p l e T r i p l e D o u b l e 1979 G l a z i n g D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e D o u b l e 1976 -- D o u b l e D o u b l e D o u b l e — D o u b l e D o u b l e — A i r - V a p o u r 4 m i l . 2 m i l . 2 m i l 4 m i l . 4 m i l 4 m i l . 6 m i l . 6 m i l . B a r r i e r No e n e r g y M i n i m a l M i n i m a l Some Some Some Some C o n t i n u o u s r e l a t e d e n e r g y r e - e n e r g y r e - e n e r g y - r e e n e r g y - r e e n e r g y r e - e n e r g y r e - b a r r i e r , C o n s i d e r a - l a t e d c o n - l a t e d c o n - l a t e d c o n - l a t e d c o n - l a t e d c o n - l a t e d c o n - m e c h a n i c a l t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s s i d e r a t i o n s . v e n t i l a t i o n E l e c t r o n i c 2 N o 3 5 I g n i t i o n No No No No Yes Yes F u r n a c e S e t - B a c k T h e r m o s t a t No I n t r o -d u c i n g No N o2 N o 3 Yes Y e s 3 1) I n c l u d e d i n a p o r t i o n o f homes 4) R24 i s o p t i o n a l 2) B u i l d e r i s i n t r o d u c i n g R9 a n d e l e c t r o n i c i g n i t i o n / s e t b a c k t h e r m o s t a t 5) O v e r s i z e h o t w a t e r h e a t e r r e p l a c e s c o n v e n t i o n a l f u r n a c e a s 3) O p t i o n a l h e a t i n g s y s t e m 6) Not i n o p e r a t i o n * A l l f i g u r e s a r e I m p e r i a l R v a l u e s 78 c. V a r i a t i o n s Between Vancouver And Regina As was t r u e of most Vancouver b u i l d e r s i n t e r v i e w e d , a l l b u i l d e r s i n t e r v i e w e d i n Regina a r e e x c e e d i n g n e a r l y a l l of the st a n d a r d s p r e s c r i b e d by CMHC ( B u i l d e r ' s B u l l e t i n No. 332). The e x c e p t i o n i s i n the CMHC r e q u i r e m e n t s f o r basement i n s u l a t i o n and a i r - v a p o u r b a r r i e r i n s t a l l a t i o n measures t o i n c r e a s e a i r -t i g h t n e s s . Most Vancouver b u i l d e r s meet CMHC basement f o u n d a t i o n w a l l s t a n d a r d s ; w h i l e owing t o the p o p u l a r i t y of f u l l basements i n Re g i n a , l e s s than h a l f those i n t e r v i e w e d a r e meeting the basement s t a n d a r d s . ' 9 Only two Regina b u i l d e r s are c u r r e n t l y meeting or e x c e e d i n g a l l s t a n d a r d s s e t out by CMHC. In b o th Regina and . Vancouver most . b u i l d e r s were u s i n g i n s u l a t e d m e t a l doors (R7.5 - 1 0 ) i n t e r c h a n g e a b l y w i t h u n i n s u l a t e d wood doors (R3.0) (CMHC minimum i s R4), a l t h o u g h i n s u l a t e d doors predominated more i n Re g i n a . The d e c i s i o n was u s u a l l y based On a e s t h e t i c s and consumer p r e f e r e n c e , and hence the more a t t r a c t i v e wood doors were g e n e r a l l y used i n more e x p e n s i v e or custom houses. CMHC has so f a r made no recommendations r e g a r d i n g the c o n s t r u c t i o n or type of f i r e p l a c e s . W h i l e a l l Regina b u i l d e r s o f f e r e d energy e f f i c i e n t f i r e p l a c e s n e a r l y e x c l u s i v e l y , Vancouver market p e n e t r a t i o n was somewhat l e s s , e x p e c i a l l y i n the h i g h e r - p r i c e d f i e l d . * 9The c r a w l s p a c e type f o u n d a t i o n common i n the Vancouver a r e a i s e a s i e r and cheaper t o i n s u l a t e than the f u l l basement t y p i c a l l y c o n s t r u c t e d on the P r a i r i e s . 79 6.2.2 Awareness Of Energy Consumption Average energy consumption r a t e s f o r houses can e a s i l y be c o l l e c t e d and a r e v a l u a b l e i n d e t e r m i n i n g which energy s a v i n g f e a t u r e s appear t o have the g r e a t e s t impact on energy c o n s u m p t i o n . 5 0 F i v e b u i l d e r s were aware of average energy consumption i n d o l l a r f i g u r e s from e x p e r i e n c e w i t h t h e i r own homes which were b u i l t t o the same s t a n d a r d s as t h e i r market homes. E l e v e n b u i l d e r s knew n o t h i n g about the amount of energy needed t o o p e r a t e t h e i r homes, e i t h e r i n d o l l a r terms or i n energy u n i t s . The o n l y b u i l d e r who had energy consumption f i g u r e s was the Regina b u i l d e r s p e c i a l i z i n g i n energy e f f i c i e n t houses who ( w i t h the a i d of government f u n d i n g ) has mo n i t o r e d consumption i n s i x houses t o d a t e . S e v e r a l Regina b u i l d e r s were aware t h a t HUDAC i n f o r m a t i o n b o o k l e t s had i n c l u d e d methods t o e s t i m a t e the energy consumption of houses, but none had taken the time t o c a l c u l a t e the r a t e f o r t h e i r homes. The p r e v a i l i n g a t t i t u d e among the s e b u i l d e r s was: "the h o u s i n g consumer i s r e l a t i v e l y unconcerned w i t h energy consumption so t h e r e i s no reason f o r concern on my p a r t " . A l l b u i l d e r s were asked s p e c i f i c a l l y i f they knew the c o s t -e f f e c t i v e n e s s or pay-back p e r i o d f o r the energy s a v i n g f e a t u r e s or i n c r e m e n t a l i n s u l a t i o n v a l u e s they were i n s t a l l i n g . Knowledge of t h e s e economic measures a re r e a d i l y o b t a i n a b l e i n r e p o r t s by CMHC, B.C. Hydro and HUDAC. F i v e Vancouver b u i l d e r s 5 0 F o r example, s e t - b a c k t h e r m o s t a t s and energy e f f i c i e n t f i r e p l a c e s a r e o n l y b e g i n n i n g t o appear i n mass-market h o u s i n g . W h i l e HUDAC has c a l c u l a t e d average payback p e r i o d s f o r some of these f e a t u r e s , m o n i t o r i n g them i n a c t u a l use th r o u g h h e a t i n g b i l l s and homeowner q u e s t i o n n a i r e s c o u l d be a more r e v e a l i n g measure of t h e r e p r a c t i c a l v a l u e as energy s a v e r s . 80 and one Regina b u i l d e r (no. 1) had.no knowledge of the c o s t -e f f e c t i v e n e s s of any of the measures they were i n s t a l l i n g . The c o n v e n t i o n a l Regina b u i l d e r , l e a d i n g i n energy e f f i c i e n c y , had c o l l e c t e d f a i r l y d e t a i l e d i n f o r m a t i o n on the pay-back p e r i o d s of v a r i o u s measures from CMHC d a t a . The subsequent i n t e r v i e w question--"how do you d e c i d e on which f e a t u r e s w i l l be o f f e r e d ? " — r e v e a l e d t h a t what was o f f e r e d depended upon what the consumer was a s k i n g f o r , what the b u i l d e r f e l t was most m a r k e t a b l e , or the s t a t u s quo ( i . e . what, o t h e r b u i l d e r s were o f f e r i n g ) . S e v e r a l b u i l d e r s r e c o g n i z e d the importance of u s e r l i f e s t l y e and doubted the v a l u e of payback a n a l y s e s . Even the n i n e b u i l d e r s who had some i m p r e s s i o n of the c o s t - e f f e c t i v e n e s s f o r a t l e a s t some energy s a v i n g f e a t u r e s s t a t e d t h a t t h i s knowledge c o n t r i b u t e d o n l y m i n i m a l l y t o the d e c i s i o n t o o f f e r the f e a t u r e . For the c o n v e n t i o n a l b u i l d e r , f e a t u r e s which are the most c o s t - e f f e c t i v e are not n e c e s s a r i l y the most m a r k e t a b l e . Y e t , s i n c e the most c o s t - e f f e c t i v e measures are o f t e n the l e a s t e x p e n s i v e , c o s t - e f f e c t i v e n e s s i s o f t e n a t t a i n e d because of the b u i l d e r ' s d e s i r e t o m i n i m i z e c a p i t a l c o s t s . To d a t e , o n l y c o n v e n t i o n a l and r e l a t i v e l y i n e x p e n s i v e t e c h n i q u e s of i n c r e a s i n g i n s u l a t i o n and some t i g h t e n i n g of the a i r - v a p o u r b a r r i e r have been i n t r o d u c e d . U n t i l c a p i t a l c o s t s of energy s a v i n g measures become a more s i g n i f i c a n t p o r t i o n of the t o t a l c o s t s , a s t r i c t c o s t - e f f e c t i v e n e s s a n a l y s i s i s not c r i t i c a l . However, t h e r e i s s u b s t a n t i a l scope and a c u r r e n t need f o r an improvement i n the b u i l d e r s ' awareness of energy consumption, and h i s knowledge of the c o s t - e f f e c t i v e n e s s 8 1 c o n c e p t . 6.2.3 C u r r e n t Impact On De s i g n C u r r e n t i n i t i a t i v e s by mass-market house b u i l d e r s t o i n c r e a s e the energy e f f i c i e n c y of t h e i r homes have r e l i e d e n t i r e l y on c o n v e n t i o n a l t e c h n i q u e s of c o n s t r u c t i o n . Y e t , as r e v e a l e d i n Chapter 3, o t h e r i m p o r t a n t c o n s i d e r a t i o n s e x i s t e n t i r e l y a p a r t from c o n s t r u c t i o n t e c h n i q u e s . These are the d e s i g n f e a t u r e s which a l l o w the p h y s i c a l form of the home t o tak e advantage of i t s s i t e and c l i m a t e . The p r i n c i p a l d e s i g n c o n s i d e r a t i o n s r e l a t e t o the s i z e and placement of g l a z i n g , the shape of the home and the e l i m i n a t i o n of energy w a s t e f u l f e a t u r e s such as s k y l i g h t s . In the mass-market f i e l d , i n t r o d u c i n g s i t e s p e c i f i c d e s i g n f e a t u r e s i s d i f f i c u l t . T h e r e f o r e c e r t a i n m a c r o - c l i m a t i c c o n s i d e r a t i o n s , (such as p r e v a i l i n g wind d i r e c t i o n and the q u a n t i t y of s o l a r r a d i a t i o n ) a r e the f a c t o r s t o which energy s e n s i t i v e d e s i g n must r e s p o n d . 5 1 The i n t e r i o r d e s i g n of the home has a l e s s c r i t i c a l i n f l u e n c e on energy use except where i t a f f e c t s window s i z e and placement. Two i n t e r i o r d e s i g n f e a t u r e s which a r e c u r r e n t l y 5 1 C l i m a t i c c o n s i d e r a t i o n s a r e u n f o r t u n a t e l y c o n s t r a i n e d t o a degree by the l a c k of e n e r g y , c o n s c i o u s response i n s u b d i v i s i o n d e s i g n . C u r r e n t s t r e e t l a y o u t s e i t h e r l e a v e a s u b s t a n t i a l p o r t i o n of the l o t s o r i e n t e d e a s t - w e s t , e l i m i n a t i n g p o s s i b i l i t i e s f o r s o l a r g a i n , or f u t u r e homes o t h e r w i s e c o n f i n e d from r e s p o n d i n g t o c l i m a t i c c o n d i t i o n s by l o t s i z e , s i d e y a r d or o t h e r s i t i n g r e s t r i c t i o n s . Thus, a t r a d i t i o n a l shaped and s i t e d home i s the o n l y a v a i l a b l e o p t i o n i n many i n s t a n c e s . Yet even a c c o u n t i n g f o r the above c o n s t r a i n t s , p o s s i b i l i t i e s remain open t o a b u i l d e r t o a l t e r the d e s i g n of h i s homes t o reduce energy consumption. 82 p o p u l a r and i n f l u e n c e energy consumption t o some degree a re the v a u l t e d c e i l i n g 5 2 and open s t a i r c a s e s . In c o m b i n a t i o n w i t h an open s t a i r c a s e or a l o n e , the v a u l t e d c e i l i n g both i n c r e a s e s the q u a n t i t y of heated space i n the home and, depending on i t s e x t e n t and the d e s i g n of the home, c r e a t e s l a r g e r open spaces i n the i n t e r i o r . These open area s i n c r e a s e the r a t e of heat l o s s when doors a r e opened and c r e a t e a d d i t i o n a l problems of uneven heat d i s t r i b u t i o n . A l l these c o n d i t i o n s c o n t r i b u t e t o lower the energy e f f i c i e n c y of the home. A l s o , the v a u l t e d c e i l i n g i s more d i f f i c u l t t o i n s u l a t e than the c o n v e n t i o n a l a t t i c . G i v e n the prominent r o l e t h a t : a e s t h e t i c s p l a y i n the m a r k e t i n g of s i n g l e - f a m i l y homes, i t was not s u r p r i s i n g t o f i n d t h a t energy c o n s i d e r a t i o n s have had v e r y m i n i m a l i n f l u e n c e s on d e s i g n . In the c o m p e t i t i v e mass-market, the a t t r a c t i v e n e s s of the home must be m a i n t a i n e d both from the o u t s i d e and from w i t h i n . As one b u i l d e r a d e p t l y s t a t e d , "An energy e f f i c i e n t home doesn't do anyone much good i f no one i s p r e p a r e d t o l i v e i n i t " . Another b u i l d e r r e i t e r a t e d the s e n t i m e n t s of o t h e r s when he s t a t e d t h a t b u i l d e r s a re v e r y c o n s c i o u s of b u i l d i n g a good l o o k i n g home t o which they can a t t a c h t h e i r name, and b u i l d i n g " w e i r d " or u n c o n v e n t i o n a l a p p e a r i n g homes c o u l d not o n l y h u r t immediate s a l e s but a l s o i n f l i c t a b l a c k mark on the company name as w e l l . The overwhelming emphasis g i v e n the e x t e r i o r appearance of homes by both the b u i l d e r and the consumer i n the mass-market 5 2 V a u l t e d or c a t h e d r a l c e i l i n g s a r e those which a r e s l o p e d p a r a l l e l t o the r o o f l i n e of the home, e l i m i n a t i n g the a t t i c i n the p o r t i o n of the home over which they e x t e n d . 83 was demonstrated i n the terms of r e f e r e n c e f o r the Energy Showcase of 14 energy e f f i c i e n t homes h e l d i n Saskatoon, Saskatchewan. A major c r i t i c i s m of pa s t government d e m o n s t r a t i o n p r o j e c t s i n h o u s i n g was t h a t the d e s i g n s l a c k e d consumer a p p e a l and t h a t the s t y l e of such homes as the Saskatchewan C o n s e r v a t i o n Home c o u l d never compete i n the mass-market. In res p o n s e , b u i l d e r s i n the Saskatoon show were e x p l i c i t l y i n s t r u c t e d t o c o n s t r u c t t r a d i t i o n a l s t y l e d homes which would be r e a d i l y a c c e p t e d by the mass-market consumer. A l t h o u g h t h i s study found s m a l l b u i l d e r s t o be g e n e r a l l y . l e s s aware of energy e f f i c i e n c y than l a r g e r b u i l d e r s , the s m a l l e s t Vancouver b u i l d e r i n t e r v i e w e d had a v e r y c l e a r - s i g h t e d o b s e r v a t i o n on r e c e n t changes i n h o u s i n g d e s i g n and c o n s t r u c t i o n . He noted the a m b i g u i t y of r e c e n t moves i n the i n d u s t r y t o i n c r e a s e i n s u l a t i o n s t a n d a r d s w h i l e at t h e same time i n c r e a s i n g the use of energy i n e f f i c i e n t d e s i g n p r a c t i c e s such as l a r g e amounts of g l a z i n g and v a u l t e d c e i l i n g s . He f e l t t h a t h o u s i n g consumers c l e a r l y demonstrate t h e i r i g n o r a n c e of the energy b a l a n c e i n a home when they r e q u e s t a d d i t i o n a l i n s u l a t i o n and y e t , a t the same t i m e , demand energy w a s t i n g d e s i g n f e a t u r e s . Of the 17 b u i l d e r s i n t e r v i e w e d , o n l y the energy e f f i c i e n c y s p e c i a l t y b u i l d e r i n Regina a l t e r e d e x t e r i o r and i n t e r i o r d e s i g n f e a t u r e s t o the e x t e n t t h a t they n o t i c e a b l y i n f l u e n c e d the appearance of the home. The most o b v i o u s v a r i a t i o n was i n the absence of l a r g e windows on t h r e e s i d e s of the home. A d d i t i o n a l l y , i n t e r i o r d e s i g n s l a c k open c e i l i n g s and s t a i r c a s e s , and c e i l i n g l i g h t f i x t u r e s a r e e l i m i n a t e d t o p r e v e n t 84 p e r f o r a t i o n of the c e i l i n g a i r - v a p o u r b a r r i e r . 5 3 Without e x c e p t i o n , the r e m a i n i n g b u i l d e r s i n t e r v i e w e d c o u l d not s u b s t a n t i a t e any i n s t a n c e s where energy r e l a t e d c o n s i d e r a t i o n s i n f l u e n c e d the d e s i g n of t h e i r homes. Three o t h e r Regina b u i l d e r s mentioned t h a t they make an attempt t o o b t a i n n o r t h - s o u t h o r i e n t e d l o t s and p l a c e a d d i t i o n a l g l a z i n g on the sunny s i d e . S t i l l , o n l y one of the t h r e e appeared t o c o n s i d e r the p o t e n t i a l s o l a r g a i n s . The o t h e r two c o n s i d e r e d i t f o r o v e r a l l a e s t h e t i c a p p e a l and l o c a t e d l i v i n g spaces on the s o u th where p o s s i b l e . Energy e f f i c i e n c y c r i t e r i a i n h o u s i n g d e s i g n have not y e t had a s i m i l i a r impact as they have had i n o t h e r f i e l d s such as a u t o m o b i l e d e s i g n . In the a u t o m o b i l e i n d u s t r y the i n f l u e n c e of government r e g u l a t i o n and consumer demand has r e s u l t e d i n more r a p i d d e s i g n changes. A l t h o u g h improvement has o c c u r r e d i n h o u s i n g c o n s t r u c t i o n s t a n d a r d s , mass-market h o u s i n g d e s i g n has remained b a s i c a l l y u n i n f l u e n c e d by energy e f f i c i e n c y c o n s i d e r a t i o n s . 6.2.4 M o t i v e s For I n c r e a s i n g E f f i c i e n c y S t a n d a r d s N e a r l y e v e r y b u i l d e r i n t e r v i e w e d had made a t l e a s t one energy r e l a t e d improvement i n the c o n s t r u c t i o n of h i s homes i n the p a s t t h r e e y e a r s . The most common changes were i n c r e a s e s i n i n s u l a t i o n v a l u e s , a i r - t i g h t n e s s c o n s i d e r a t i o n s i n the a i r -vapour b a r r i e r f o r Regina b u i l d e r s , and the i n t r o d u c t i o n of energy e f f i c i e n t f i r e p l a c e s by Vancouver b u i l d e r s . As e x p e c t e d , 5 3 0 n e o t h e r Regina b u i l d e r mentioned he has e l i m i n a t e d the use of c e i l i n g l i g h t f i x t u r e s f o r the same reason ( B u i l d e r 13). 85 m a r k e t a b i l i t y was t h e , p r i m a r y m o t i v e behind these changes. Three s m a l l b u i l d e r s and one l a r g e r b u i l d e r i n t e r v i e w e d had not made such changes r e c e n t l y . In a d d i t i o n , one of the two custom house b u i l d e r s i n t e r v i e w e d i n Vancouver had made no energy r e l a t e d changes i n c o n s t r u c t i o n i n the pas t y e a r , w h i l e the o t h e r had begun o f f e r i n g energy e f f i c i e n t f i r e p l a c e s . Both b u i l d e r s i n d i c a t e d t h a t , i n t h e i r sub-market, consumer i n q u i r i e s and d e s i r e s i n s t i g a t e most changes. Two b u i l d e r s i n Vancouver and one i n Regina mentioned t h a t the e x p e c t a t i o n of f u r t h e r i n c r e a s e s i n CMHC s t a n d a r d s and a concern f o r b e i n g l e f t behind were c o n s i d e r a t i o n s i n b o o s t i n g t h e i r i n s u l a t i o n v a l u e s . P u b l i c i t y s u r r o u n d i n g the Saskatchewan Home Energy Loan Program i n i t i a t e d May 1 1981, has a l s o i n f l u e n c e d R egina b u i l d e r s t o c o n s i d e r i n c r e a s i n g t h e i r s t a n d a r d s . By f a r the most i m p o r t a n t reason g i v e n was t h a t energy e f f i c i e n c y had become a m a r k e t i n g c o n s i d e r a t i o n . The i n f l u e n c e of c o m p e t i t i o n was most apparent among Regina f i r m s . F i v e b u i l d e r s s t a t e d t h a t they r a i s e d t h e i r s t a n d a r d s because of c o m p e t i t i o n . At l e a s t two major f i r m s , one i n each of Vancouver and Re g i n a , used energy c o n s e r v a t i o n as an e x p l i c i t m a r k e t i n g s t r a t e g y . From T a b l e s 6.3 and 6.4, i t i s apparent t h a t i n g e n e r a l , the l a r g e r b u i l d e r s a r e i n c r e a s i n g s t a n d a r d s f o r m a r k e t i n g reasons w h i l e s m a l l e r f i r m s a r e prompted t o r a i s e t h e i r s t a n d a r d s t o remain c o m p e t i t i v e . T h e r e f o r e , d e s p i t e the u n i f o r m n a t u r e of energy e f f i c i e n c y s t a n d a r d s i n the i n d u s t r y , some b u i l d e r s a r e c l e a r l y l e a d e r s , w h i l e o t h e r s a r e s i m p l y 86 k e e p i n g pace w i t h the c o m p e t i t i o n . The l e a d i n g b u i l d e r s are h e l p i n g t o r a i s e the energy awareness of consumers and a r e p r e s s u r i n g o t h e r b u i l d e r s t o r a i s e t h e i r s t a n d a r d s . T h i s o b s e r v a t i o n has o b v i o u s i m p l i c a t i o n s f o r s p e e d i n g the p r o c e s s of o b t a i n i n g more energy e f f i c i e n t h o u s i n g . . T a b l e 6.3 R e s p o n s e s o f t h e V a n c o u v e r B u i l d e r s t o Key Q u e s t i o n s B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r 1 2 3 4 5 6 7 8 9 A p p r o x . A n n u a l No. o f Homes 10 15 100 200 150 200 200 15 50 1. V i e w o f C a n a d a ' s e n e r g y p r o b l e m No p r o b l e m I s a c o n c e r n No p r o b l e m Not s e r i o u s Not s e r i o u s No p r o b l e m D e f i n i t e p r o b l e m Not s e r i o u s No p r o b l e m 2. K n o w l e d g e o f u n i t e n e r g y c o n s u m p t i o n None D o l l a r f i g u r e D o l l a r f i g u r e None None None D o l l a r f i g u r e None None 3. B a s i s f o r d e s i g n d e c i s i o n a f f e c t i n g e n e r g y c o n s u m p t i o n . A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s 4. R e a s o n f o r i m -p r o v m e n t s i n e n e r g y e f f i c i e n c y No r e c e n t i m p r o v e m e n t s CMHC/ B.C. H y d r o s t a n d a r d s C o m p e t i o n M a r k e t i n g C o m p e t i t i o n / CMHC s t a n d a r d s C o m p e t i t i o n M a r k e t i n g No r e c e n t i m p r o v e m e n t s C l i e n t d e s i r e s 5. C o n s t r u c t i o n 1 p r o b l e m s e x p e r i e n c e d / f o r e s e e n N one/ N o n e / C o n d e n s a t i o n / same None/ C o n d e n s a t i o n N one/ C o n d e n s a t i o n None/ B a r r i e r / C o n d e n s a t i o n N o n e / N o n e / 6. S o u r c e o f c o n -s t r u c t i o n i n f o r m a t i o n None r e q u i r e d CMHC I n s p e c t o r s None r e q u i r e d None r e q u i r e d None r e q u i r e d None r e q u i r e d N.R.C. None r e q u i r e d None r e q u i r e d 7. B e s t m e t h o d f o r s p r e a d i n g i n f o r m a t i o n L i t e r a t u r e L i t e r a t u r e / W o r k s h o p s N a t i o n a l R e s e a r c h C o u n c i l HUDAC W o r k s h o p s W o r k s h o p s HUDAC W o r k s h o p s W o r k s h o p s D e m o n s t r a -t i o n p r o j e c t s No n e e d B. K n o w l e d g e o f p a s s i v e s o l a r d e s i g n None None M i n i m a l Good M i n i m a l None Good None M i n i m a l 9. E x t e n t o f e n e r g y r e l a t e d m a r k e t i n g None Use "B.C. H y d r o S t a n d a r d s ' ^ M i n i m a l M e n t i o n f e a t u r e s M i n i m a l M e n t i o n f e a t u r e s f u l l P r o g r a m None M i n i m a l 1 0 . K n o w l e d g e o f c o m p e t i t o r s 1 a c t i o n s M i n i m a l A w a r e Aware W e l l Aware Aware Aware Aware None Aware 1 1 . I s g o v e r n m e n t i n t e r v e n t i o n n e c e s s a r y ? No G e n e r a l e d u c a t i o n P a s s i v e s o l a r i n c e n t i v e s , e d u c a t i o n No No P r o m o t i o n , e d u c a t i o n No No No ^ " B a r r i e r " r e f e r s t o p r o b l e m s r e l a t i n g t o a i r - v a p o u r b a r r i e r i n s t a l l a t i o n , " c o n d e n s a t i o n " r e f e r s t o h u m i d i t y a n d c o n d e n s a t i o n p r o b l e m s i n home a f t e r i t i s c o n s t r u c t e d w i t h an a i r - t i g h t v a p o u r b a r r i e r . B u i l d e r i n f o r m s p o t e n t i a l b u y e r s t h a t he m e e t s B.C. H y d r o ' s r e c o m m e n d e d s t a n d a r d s f o r V a n c o u v e r . T a b l e 6.4 R e s p o n s e s o f t h e R e g i n a B u i l d e r s t o Key Q u e s t i o n s B u i l d e r " B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r B u i l d e r 10 11 12 13 U 15 16 17 A p p r o x . A n n u a l No. o f Homes 6 20 30 50 100 200 60 15 1. V i e w o f C a n a d a ' s No No D e f i n i t e Not U n c e r t a i n N o t V e r y R e s o u r c e manage-e n e r g y p r o b l e m p r o b l e m p r o b l e m p r o b l e m s e r i o u s s e r i o u s s e r i o u s ment p r o b l e m 2. K n o w l e d g e o f u n i t D o l l a r None None None None None D o l l a r M o n i t o r s e n e r g y e n e r g y c o n s u m p t i o n f i g u r e f i g u r e u s e 3. B a s i s f o r d e s i g n A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s A e s t h e t i c s / d e c i s i o n s a f f e c t i n g e n e r g y e n e r g y c o n s u m p t i o n . e f f i c i e n c y 4. R e a s o n s f o r i m - No r e c e n t C o m p e t i t i o n C o m p e t i t i o n CMHC P u b l i c M a r k e t i n g M a r k e t i n g M a r k e t i n g p r o v e m e n t s i n e n e r g y i m p r o v e m e n t s S t a n d a r d s c o n c e r n e f f i c i e n c y 5. C o n s t r u c t i o n 1 None / 2 x 6 w a l l * / C e i l i n g s a g / B a r r i e r / B a r r i e r / B a r r i e r / B a r r i e r / H e a t e x c h a n g e r / p r o b l e m s e x p e r i e n c e d / w a l l w a l l s t r a p p i n g C o n d e n s a t i o n B a s e m e n t f o r e s e e n s t r a p p i n g i n s u l a t i o n 6. S o u r c e o f c o n - None S.P.C.5 None None S a s k a t o o n S a s k a t o o n D e m o n s t r a t i o n N.R.C. s t r u c t i o n r e q u i r e d S a s k . E . C . r e q u i r e d r e q u i r e d E n e r g y Show/ E n e r g y Show/ p r o j e c t s S.R.C.6 i n f o r m a t i o n CMHC CMHC 7. B e s t m e t h o d f o r No n e e d L i t e r a t u r e W o r k s h o p s L i t e r a t u r e S a s k a t o o n S a s k a t o o n W o r k s h o p s , C o n s u m e r s p r e a d i n g i n f o r m a t i o n T y p e D e m o n s t r a t i o n T y p e D e m o n s t r a t i o n D e m o n s t r a t i o n P r o j e c t s demand 8. K n o w l e d g e o f p a s s i v e None M i n i m a l None Good M i n i m a l M i n i m a l G o o d C u r r e n t l y s o l a r d e s i g n b u i l d i n g 9. E x t e n t o f e n e r g y None M e n t i o n M e n t i o n M e n t i o n M e n t i o n F u l l F u l l S o l e r e l a t e d m a r k e t i n g f e a t u r e s f e a t u r e s f e a t u r e s f e a t u r e s p r o g r a m p r o g r a m c r i t e r i a 1 0 . K n o w l e d g e o f com- M i n i m a l W e l l Aware Aware M i n i m a l Aware W e l l W e l l p e t i t o r s ' a c t i o n s a w a r e a w a r e a w a r e 1 1 . I s g o v e r n m e n t i n t e r - Tax P u b l i c E d u c a t i o n o f No R e g u l a t i o n P u b l i c E d u c a t i o n , R e s e a r c h v e n t i o n n e c e s s a r y ? i n c e n t i v e s e d u c a t i o n t r a d e s e d u c a t i o n i n c e n t i v e s ' N e a r l y a l l R e g i n a b u i l d e r s m e n t i o n e d p o t e n t i a l p r o b l e m s w i t h s t a n d a r d s o f t h e S a s k a t c h e w a n Home E n e r g y P r o g r a m ( S . H . E . P . ) ^ " B a r r i e r " r e f e r s t o p r o b l e m s r e l a t i n g t o a i r - v a p o u r b a r r i e r i n s t a l l a t i o n , " c o n d e n s a t i o n " r e f e r s t o h u m i d i t y a n d c o n d e n s a t i o n p r o b l e m s i n home a f t e r i t i s c o n s t r u c t e d w i t h an a i r - t i g h t v a p o u r b a r r i e r . ^ P r o b l e m o f s a g g i n g s t u c c o when p l a c e d o v e r p o l y s t y r e n e n e e d e d t o meet R26 v a l u e i n SHEP. * R e f e r s t o l o s s o f i n t e r i o r s p a c e when s w i t c h i n g t o 2" x 6" w a l l c o n s t r u c t i o n f r o m 2" x V . 5 S a s k a t c h e w a n Power C o r p o r a t i o n ; S a s k a t c h e w a n O f f i c e o f E n e r g y C o n s e r v a t i o n ^ S a s k a t c h e w a n R e s e a r c h C o u n c i l 89 6.3 KNOWLEDGE OF ENERGY CONSERVATION TECHNIQUES AND ASSOCIATED  PROBLEMS 6 .3.1 C o n s t r u c t i o n M a t e r i a l s And Methods The h o u s i n g i n d u s t r y has e x p e r i e n c e d v e r y few i n n o v a t i o n s i n c o n s t r u c t i o n m a t e r i a l s and methods over the pa s t twenty y e a r s . U n d e r s t a n d a b l y , the p a r t i c i p a n t s a r e not accustomed t o l e a r n i n g new t e c h n i q u e s , and i n f a c t have a r e p u t a t i o n f o r r e s i s t i n g changes which c o u l d r e s u l t i n d e l a y s and i n c r e a s e d c o s t s . The i n t e r v i e w p r o c e s s uncovered a wide range i n the b u i l d e r s ' 5 ' fami 1 i a r i t y w i t h energy c o n s e r v i n g m a t e r i a l s and c o n s t r u c t i o n t e c h n i q u e s . C o n s i d e r i n g the r e l a t i v e r e c e n t c o n c e r n w i t h energy e f f i c i e n c y , and a l s o remembering the ru d i m e n t a r y n a t u r e of the h o u s e - b u i l d i n g i n d u s t r y , i t i s not s u r p r i s i n g t h a t c e r t a i n energy c o n s e r v i n g t e c h n i q u e s a re not yet w e l l known. In g e n e r a l , i t was the s m a l l e r b u i l d e r s who were l e s s aware of the t e c h n i q u e s , t h e i r i n s t a l l a t i o n and why they work. T h i s i s a p a r t i a l f u n c t i o n of the time r e q u i r e d t o l e a r n new m e t h o d s — t i m e t h a t the s m a l l b u i l d e r has g e n e r a l l y l e s s o f , e s p e c i a l l y i f the f i r m i s a one-man o p e r a t i o n . 5 5 L a r g e r f i r m s employ s i t e s u p e r v i s o r s , d e s i g n t e c h n i c i a n s and c o n s t r u c t i o n managers, i n a d d i t i o n t o the s u b - c o n t r a c t e d t r a d e s ; a l l of whom 5"The h o u s i n g i n d u s t r y i s so s t r u c t u r e d t h a t the a c t u a l work of b u i l d i n g i s done by t r a d e s p e o p l e on a c o n t r a c t b a s i s who a l s o have an i m p o r t a n t r o l e t o p l a y i n l e a r n i n g new t e c h n i q u e s . 5 5 T h e s e f i r m s g e n e r a l l y c o n s t r u c t fewer than 1 0 homes per y e a r , l e s s of the work may be s u b - c o n t r a c t e d , and the owner may handle a p o r t i o n of the c o n s t r u c t i o n work and se r v e as s i t e s u p e r v i s o r . 9 0 can c o l l a b o r a t e on l e a r n i n g and a p p l y i n g new t e c h n i q u e s . a. I n s u l a t i o n No disagreement was e n c o u n t e r e d among b u i l d e r s over the b e n e f i t s of a d d i n g i n s u l a t i o n . However, the t h e o r y of how i n s u l a t i o n worked and the o p e r a t i o n a l t h e o r y of energy c o n s e r v i n g f e a t u r e s g e n e r a l l y seemed absent among most b u i l d e r s . T h i s absence was most apparent w i t h s m a l l e r b u i l d e r s who do not r e l a t e a d d i t i o n a l i n s u l a t i o n and d o u b l e - g l a z i n g t o energy e f f i c i e n c y , as much .as they do t o a n e c e s s i t y f o r b u i l d i n g a q u a l i t y home. Hence, they are u n f a m i l i a r w i t h t e c h n i q u e s (such as a c o n t i n u o u s a i r - v a p o u r b a r r i e r ) which are used s t r i c t l y t o enhance energy e f f i c i e n c y . b. A i r - v a p o u r B a r r i e r Undoubtedly the most common m i s c o n c e p t i o n e n c o u n t e r e d w i t h b u i l d e r s r e l a t e d t o the i n s t a l l a t i o n and o p e r a t i o n of the a i r -vapour b a r r i e r . Few w e s t - c o a s t b u i l d e r s a p p r e c i a t e d the b e n e f i t s or u n d e r s t o o d the purpose of an a i r - t i g h t b a r r i e r f o r r e d u c i n g heat l o s s . Three had no c o n c e p t i o n whatever of the r e l a t i o n between the q u a l i t y of a i r - v a p o u r b a r r i e r i n s t a l l a t i o n and energy e f f i c i e n c y . One major b u i l d e r even m i s u n d e r s t o o d the t r a d i t i o n a l purpose of the vapour b a r r i e r — t h e p r e v e n t i o n of moist i n t e r i o r a i r from p e n e t r a t i n g the b u i l d i n g e n v e l o p e , r e s u l t i n g i n c o n d e n s a t i o n i n e n c l o s e d w a l l and c e i l i n g members. T h i s b u i l d e r s t a t e d t h a t he i n s t a l l e d vapour b a r r i e r s because they were r e q u i r e d by m u n i c i p a l r e g u l a t i o n but f e l t they were more a cause of c o n d e n s a t i o n problems than a c u r e . Adding 91 c r e d i b i l i t y t o the s e m i s c o n c e p t i o n s i n the eyes of the b u i l d e r s are the many s t o r i e s c i r c u l a t i n g among Vancouver b u i l d e r s ( s e v e r a l of which were r e p e a t e d i n the i n t e r v i e w s ) c o n c e r n i n g problems w i t h c o n d e n s a t i o n . One b u i l d e r r e p o r t e d t h a t p a s t buyers have even r e q u e s t e d t h a t the vapour b a r r i e r be o m i t t e d . More than one b u i l d e r f e l t the cause of c o n d e n s a t i o n problems was a f a i l u r e t o " s l a s h the b a r r i e r s i n p l a c e s , t o g i v e the w a l l s a chance t o b r e a t h " . T h i s s o l u t i o n has no b a s i s i n t h e o r y , but had wi d e s p r e a d support i n p r a c t i c e . Regina b u i l d e r s a re more aware of energy e f f i c i e n t c o n s t r u c t i o n p r a c t i c e s and have a g r e a t e r u n d e r s t a n d i n g of the importance of the a i r - v a p o u r b a r r i e r . T h e r e f o r e Regina b u i l d e r s seem l e s s r e l u c t a n t t o i n c r e a s e the a i r - t i g h t n e s s of t h e i r homes; whereas many Vancouver b u i l d e r s appear t o harbour a f e a r of t h i s measure. Only one Regina b u i l d e r (No. 1) demonstrated an o b v i o u s l a c k of knowledge r e s p e c t i n g a i r - t i g h t vapour b a r r i e r s . In the i n i t i a l s t a g e s of i n c r e a s i n g energy e f f i c i e n c y , the knowledge of p r o p e r a i r - t i g h t , a i r - v a p o u r b a r r i e r i n s t a l l a t i o n i s t he o n l y major t e c h n i q u e which must be l e a r n e d by b u i l d e r s and t h e i r t r a d e s . Because c o n v e n t i o n a l methods of vapour b a r r i e r i n s t a l l a t i o n r e s u l t i n p e r f o r a t i o n s and gaps, new i n s t a l l a t i o n sequences and a d d i t i o n a l c a r e a r e r e q u i r e d . The one Vancouver b u i l d e r who had reached the p o i n t of i n s t i t u t i n g t h e s e changes r e p o r t e d some d i f f i c u l t i e s i n t e a c h i n g new methods t o h i s t r a d e s . The Regina b u i l d e r s were i n v a r i o u s s t a g e s of i n c r e a s i n g the a i r - t i g h t n e s s of t h e i r d w e l l i n g s . Because of the v a r i e t y of 92 d e t a i l s i n v o l v e d , i t was i m p o s s i b l e t o det e r m i n e the r e l a t i v e p o s i t i o n of the b u i l d e r s r e g a r d i n g a i r - t i g h t n e s s . I t was p o s s i b l e t o d i s t i n g u i s h one Regina b u i l d e r as b e i n g f u r t h e r advanced and one s m a l l b u i l d e r as l a g g i n g b e h i n d . The remainder of the Regina b u i l d e r s , a p a r t from the s p e c i a l t y b u i l d e r , can be judged a p p r o x i m a t e l y e q u a l i n t h e i r a t t e n t i o n t o a i r - v a p o u r b a r r i e r i n s t a l l a t i o n . U n q u e s t i o n a b l y , west c o a s t b u i l d e r s p e r c e i v e c o n d e n s a t i o n problems t o be a gr e a t e r , c o n c e r n than do b u i l d e r s on the p r a i r i e s , and i n c r e a s i n g the a i r - t i g h t n e s s of the vapour b a r r i e r can, under c e r t a i n c i r c u m s t a n c e s , r e s u l t i n c o n d e n s a t i o n problems. However, from d i s c u s s i o n s w i t h b u i l d i n g r e s e a r c h e r s , i t i s apparent t h a t i t i s the l a c k of b u i l d e r knowledge of the t h e o r y and prop e r i n s t a l l a t i o n p r o c e d u r e s which i s c a u s i n g most of the problems. I t appears t h a t t r a d i t i o n a l p r a c t i c e s a re d i f f i c u l t t o d i s p l a c e from the b u i l d i n g i n d u s t r y . T h i s i s e s p e c i a l l y t r u e f o r the s m a l l b u i l d e r s who a r e f u r t h e r removed from the mainstream of i n n o v a t i o n s . S t i l l , a l a c k of proper t e c h n i c a l knowledge p e r s i s t s , even among some of the major b u i l d e r s . In f a c t , o n l y one b u i l d e r i n the Vancouver area appeared t o u n d e r s t a n d the concept of an a i r - t i g h t a i r - v a p o u r b a r r i e r . c. Knowledge Of Other Techniques L i k e i n s u l a t i o n , double g l a z i n g was r e a d i l y u n d e r s t o o d and a c c e p t e d . S e v e r a l Vancouver b u i l d e r s and a l l Regina b u i l d e r s were aware of the b e n e f i t s - of such items as t h e r m a l break windows, the importance of the s p a c i n g between the panes, and 93 the h i g h e r performance of wood over, m e t a l sash. A d d i t i o n a l l y , a b a s i c comprehension of the i n f l u e n c e of window placement and s i z e on energy consumption seemed g e n e r a l among a l l b u i l d e r s . One Vancouver b u i l d e r mentioned problems e n c o u n t e r e d w i t h energy c o n s e r v i n g f i r e p l a c e s and m a i n t a i n e d t h a t they were a f i r e h a z a r d . T h e r e f o r e he b u i l t o n l y c o n v e n t i o n a l masonry f i r e p l a c e s . B u i l d e r knowledge of such i n n o v a t i o n s as e l e c t r o n i c i g n i t i o n f u r n a c e s and s e t - b a c k t h e r m o s t a t s v a r i e d . A g a i n , major b u i l d e r s appeared more aware of these d e v i c e s than d i d s m a l l e r ones. W h i l e every b u i l d e r except two had a t l e a s t heard of these d e v i c e s , o n l y two b u i l d e r s i n each l o c a t i o n were c u r r e n t l y u s i n g them. 6.3.2 P a s s i v e S o l a r Design I f the b u i l d e r s i n t e r v i e w e d a r e r e p r e s e n t a t i v e of the b u i l d i n g i n d u s t r y , t h e r e a r e many m i s c o n c e p t i o n s t o be overcome and d e s i g n and c o n s t r u c t i o n t e c h n i q u e s t o be l e a r n e d b e f o r e p a s s i v e s o l a r d e s i g n becomes a c c e p t e d by b u i l d e r s as a energy s o u r c e . Two Regina b u i l d e r s (no.10 & 12) and two Vancouver b u i l d e r s (no.1 & 5) r e v e a l e d a t o t a l l a c k of comprehension of the t e c h n o l o g y , w h i l e a c o n f u s i o n between a c t i v e and p a s s i v e s o l a r energy was common among many of the o t h e r s i n t e r v i e w e d . O v e r a l l , o n l y a p p r o x i m a t e l y h a l f the b u i l d e r s seemed t o u n d e r s t a n d b o t h the concept and methods t o the e x t e n t n e c e s s a r y f o r . e mploying a s i m p l e form of p a s s i v e s o l a r d e s i g n . Other than the energy e f f i c i e n t Regina b u i l d e r , who was i n c o r p o r a t i n g a d i r e c t g a i n p a s s i v e system i n most of h i s homes, 94 two o t h e r Regina b u i l d e r s and one Vancouver b u i l d e r s t a t e d they were g i v i n g c o n s i d e r a t i o n t o p a s s i v e s o l a r g a i n s where p o s s i b l e . S e v e r a l b u i l d e r s s i m p l y s t a t e d t h a t s o l a r energy was too ex p e n s i v e and r e q u i r e d an o v e r l y l e n g t h y payback p e r i o d , i n d i c a t i n g a l a c k of u n d e r s t a n d i n g of the wide range of p o s s i b l e p a s s i v e s o l a r d e s i g n o p t i o n s . S e v e r a l Vancouver b u i l d e r s doubted the f e a s i b i l i t y of p a s s i v e s o l a r g i v e n the t y p i c a l r a i n y s u n l e s s Vancouver w i n t e r s . One f e l t t h a t p a s s i v e s o l a r d e s i g n would c o n f l i c t w i t h some of the t r a d i t i o n a l v a l u e s of V a n c o u v e r i t e s - generous y a r d v e g e t a t i o n , and . n o r t h f a c i n g mountain v i e w s . A l t h o u g h each of the s e can be r e c o n c i l e d w i t h pas*sive s o l a r d e s i g n , the a t t i t u d i n a l r e s i s t a n c e s t o be overcome are a p p a r e n t . W h i l e s e v e r a l b u i l d e r s mentioned the c o n s t r a i n t s t o p a s s i v e s o l a r d e s i g n i n t r o d u c e d by i n s e n s i t i v e s u b d i v i s i o n l a y o u t , one Regina b u i l d e r gave a more s p e c i f i c problem d e s c r i p t i o n r e l a t i n g t o a Regina s u b d i v i s i o n . Many of the newer Regina s u b d i v i s i o n s a r e under a form of P l a n n e d U n i t Development z o n i n g which a l l o w s f l e x i b i l i t y i n s i d e - y a r d s , s e t - b a c k s and o t h e r t r a d i t i o n a l z o n i n g c o n c e r n s , t o a l l o w an i n c r e a s e i n d e n s i t y . However, i n ord e r t o p r o t e c t the o v e r a l l a e s t h e t i c s of a s u b d i v i s i o n under the s e c i r c u m s t a n c e s , c e r t a i n d e s i g n c o n t r o l s have been e n f o r c e d , which t o g e t h e r w i t h the i n c r e a s e d d e n s i t y reduces the o p p o r t u n i t i e s f o r p a s s i v e s o l a r d e s i g n . For example, z e r o l o t l i n e r e q u i r e m e n t s p r o h i b i t g l a z i n g on one s i d e w a l l . Such r e g u l a t i o n s p l a c e c o n s t r a i n t s on the l a y o u t of i n t e r i o r space and the s i z e and placement of g l a z i n g t o improve energy e f f i c i e n c y , and may i n h i b i t a t t e m p t s a t i n c o r p o r a t i n g p a s s i v e 95 s o l a r g a i n i n d e s i g n s . S e v e r a l Vancouver m u n i c i p a l i t i e s (eg. S u r r e y ) r e q u i r e s u b d i v i s i o n d e s i g n c o n t r a c t s t o ensure c o m p a t a b i l i t y w i t h s u r r o u n d i n g homes. Such d e s i g n c o n t r o l s c o u l d p r e s e n t an a d d i t i o n a l b a r r i e r t o the w idespread a c c e p t a n c e of u n c o n v e n t i o n a l p a s s i v e s o l a r d e s i g n e d homes. 6.3.3 C o n s t r u c t i o n Problems E n c o u n t e r e d Even though most measures c u r r e n t l y u ndertaken i n mass-market housing«to i n c r e a s e energy e f f i c i e n c y do not i n v o l v e new or u n f a m i l i a r b u i l d i n g t e c h n i q u e s , t h e r e a r e problems both d u r i n g c o n s t r u c t i o n and o p e r a t i o n . The most n o t a b l e have been tho s e r e l a t e d t o i n c r e a s i n g a i r - t i g h t n e s s and the i n s t a l l a t i o n of the a i r - v a p o u r b a r r i e r . The c o m b i n a t i o n of i n c r e a s i n g i n s u l a t i o n l e v e l s i n the w a l l s and a t t i c s and the a d d i t i o n a l c a u l k i n g and t a p i n g of a i r -vapour b a r r i e r s have had s e v e r a l unwelcome e f f e c t s on the s t r u c t u r a l components of the home. The major problem i d e n t i f i e d by b u i l d e r s i n both Regina and Vancouver was r o o f t r u s s u p l i f t caused by the a d d i t i o n a l m o i s t u r e i n the a t t i c . In more s e r i o u s c a s e s , t r u s s u p l i f t causes gaps t o appear i n the i n t e r i o r j o i n t s between w a l l s and c e i l i n g s . A r e l a t e d problem mentioned by s e v e r a l Regina b u i l d e r s has been a d e f o r m a t i o n of the c e i l i n g d r y w a l l caused by both i n c r e a s i n g a t t i c m o i s t u r e , and the a d d i t i o n a l weight of the w i d e r c e i l i n g b a f f l e s which a r e needed t o i n c r e a s e a t t i c i n s u l a t i o n . T h i s problem has been overcome th r o u g h the use of t h i c k e r " f i r e g u a r d " d r y w a l l . Owing t o the r a t h e r l i m i t e d e x p e r i e n c e of Vancouver 96 b u i l d e r s i n a p p l y i n g energy c o n s e r v i n g b u i l d i n g t e c h n i q u e s , few problems were r e p o r t e d by these b u i l d e r s . G e n e r a l m o i s t u r e problems, and roof t r u s s u p l i f t were mentioned. The o t h e r problem i n v o l v e d the assembly of 2x6 i n c h w a l l s r a t h e r than the u n i v e r s a l 2x4 i n c h w a l l . A d d i t i o n a l weight c o n s i d e r a t i o n s r e q u i r e d t h r e e men per fr a m i n g crew r a t h e r than two, and c r e a t e d a d i f f i c u l t y i n o b t a i n i n g window and door frames t o f i t the t h i c k e r w a l l . A f u r t h e r problem r e p o r t e d by b u i l d e r s i n each l o c a t i o n i s the l o s s of 2 in c h e s of space on each s i d e of sthe home which c o u l d become c r i t i c a l i n s m a l l , spaces such as bathrooms. a. F u t u r e C o n s t r u c t i o n Problems U n q u e s t i o n a b l y , i n s t a l l a t i o n of the a i r - v a p o u r b a r r i e r poses the g r e a t e s t immediate e d u c a t i o n a l problem f o r the t r a d e s and b u i l d e r a l i k e . The energy e f f i c i e n t s p e c i a l t y b u i l d e r i n Re g i n a , h a v i n g the most e x p e r i e n c e w i t h t h i s problem, was q u e s t i o n e d more e x t e n s i v e l y on i t . One i s s u e t h a t emerged was the need f o r c r a f t s m e n i n energy e f f i c i e n t c o n s t r u c t i o n who can s o l v e problems on s i t e , and j u s t as i m p o r t a n t l y , have p r i d e i n t h e i r work. A major o b s t a c l e t o i n c r e a s i n g energy e f f i c i e n c y which was i d e n t i f i e d i s the a t t i t u d e of the t r a d e s , where q u a n t i t y , not q u a l i t y i s the p r e s e n t m o t i v a t i o n . The energy e f i c i e n c y b u i l d e r a l s o s t a t e d t h a t e n t h u s i a s m and an a p t i t u d e f o r t a c k l i n g new approaches t o c o n s t r u c t i n g homes i s a second v i t a l a t t r i b u t e which i s l a c k i n g i n the t y p i c a l t r a d e s p e r s o n . A p p a r e n t l y , the assembly l i n e a p p r o a c h t o house c o n s t r u c t i o n , common thro u g h o u t the i n d u s t r y , connot be a p p l i e d t o 97 c o n s t r u c t i n g an energy e f f i c i e n t house, a t l e a s t i n i t i a l l y . Another problem e n c o u n t e r e d by t h i s b u i l d e r was i n the i n s t a l l a t i o n of the r e t u r n a i r d u c t i n g f o r the . a i r - t o - a i r heat exchanger. C o n s i d e r a b l e c o o r d i n a t i o n i s r e q u i r e d between the v a r i o u s t r a d e s i n o r d e r t o ensure adequate c l e a r a n c e between d u c t i n g and v a r i o u s s t r u c t u r a l members. The p r e s i d e n t of t h i s f i r m s t a t e d t h a t the key i s s u e i n making . the p r i c e of energy e f f i c i e n t h o u s i n g r e a s o n a b l e i s d e s i g n i n g away q u a l i t y c o n t r o l items such as these by s i m p l i f y i n g the p r o c e d u r e s t o the e x t e n t : t h a t they may once a g a i n become assembly l i n e t e c h n i q u e s (Rogoza, 1 9 7 9 , p . 7 ) . 6.3.4 Saskatchewan Home Energy Loan Program At the time the i n t e r v i e w s were c a r r i e d out i n R e g i n a , s e v e r a l r e q u i r e m e n t s of the Saskatchewan government's Home Energy Loan Program were under s c r u t i n y as p r o b a b l e s o u r c e s of c o n s t r u c t i o n problems. One was the minimum w a l l i n s u l a t i o n v a l u e s , which r e q u i r e 2 i n c h e s of s t y r o f o a m , or o t h e r i n s u l a t i n g m a t e r i a l , t o be s t r a p p e d t o the e x t e r i o r w a l l s . A c c o r d i n g t o the b u i l d e r s i n t e r v i e w e d , a d i f f i c u l t y a r i s e s when s t u c c o must be a t t a c h e d t o the w a l l . Owing t o the i n c r e a s e d space between the s t u c c o and the wood f r a m i n g , the b u i l d e r s f e a r t h a t , i n t i m e , the s t u c c o w i l l s e t t l e and they w i l l be r e s p o n s i b l e f o r r e p a i r s under the b u i l d e r w a r r a n t y program. O f f i c i a l s of the O f f i c e of Energy C o n s e r v a t i o n , Saskatchewan Department of M i n e r a l R e s o u r c e s , who f o r m u l a t e d t h e s t a n d a r d s and a d m i n i s t e r the program, c o u n t e r e d the b u i l d e r s c l a i m by m a i n t a i n i n g t h a t i f a p p l i e d p r o p e r l y , t h e r e would be no problem of s a g g i n g e x t e r i o r 9 8 w a l l m a t e r i a l (Edmundson). Other p o t e n t i a l problems mentioned by b u i l d e r 16 r e l a t e d t o basement i n s u l a t i o n r e q u i r e m e n t s (R20), which he f e l t would cause c r a c k i n g of c o n c r e t e basement f o o t i n g s due t o the s t e e p e r temperature g r a d i e n t w i t h i n the c o n c r e t e f o u n d a t i o n w a l l , and the a g g r a v a t i o n of a r e l a t e d problem known as i c e f l e x i n g . 5 6 The O f f i c e of Energy C o n s e r v a t i o n o f f i c i a l s uggested a p p l i c a t i o n of the basement w a l l i n s u l a t i o n t o the e x t e r i o r as a s o l u t i o n , a l t h o u g h he f e l t the problem d e s c r i b e d by the b u i l d e r had not y e t been e s t a b l i s h e d as such. Other b u i l d e r s , and a b u i l d i n g i n s p e c t o r w i t h CMHC i n R e g i n a , suggested the i n s u l a t i o n of i n t e r i o r basement w a l l s be t e r m i n a t e d 15.24 cm (6 i n c h e s ) from the basement f l o o r . T h i s t e c h n i q u e a l l o w s the escape of warm a i r a l o n g the f o o t i n g t o p r e v e n t the c o n c r e t e from c r a c k i n g under the s t r a i n of extreme temperature d i f f e r e n c e s a c r o s s the f o u n d a t i o n w a l l s . The b e s t s o l u t i o n seems t o be b a c k f i l l i n g around e x t e r i o r basement w a l l s u s i n g an aggregate ( g r a v e l ) m i x t u r e . Other p o s s i b l e problems w i t h the Program's proposed measures were mentioned by b u i l d e r s . The above examples are s u f f i c i e n t t o demonstrate the disagreement between b u i l d e r and l e g i s l a t o r over the p o t e n t i a l problems accompanying energy c o n s e r v i n g b u i l d i n g t e c h n i q u e s , and the l a c k of e x p e r i e n c e i n the a p p l i c a t i o n of these t e c h n i q u e s . Only c o n s i d e r a b l e p r a c t i c a l e x p e r i e n c e w i l l r e v e a l the t r u e e x t e n t of the 5 6 I n a r e a s where the s o i l goes t h r o u g h a f r e e z e - t h a w c l i m a t i c c y c l e , the e x p a n s i o n of the s o i l - w a t e r m i x t u r e can g i v e r i s e t o h i g h l a t e r a l p r e s s u r e s which can cause c r a c k i n g of f o u n d a t i o n w a l l s . 99 p o t e n t i a l problems j u s t o u t l i n e d . Many of the problems d e s c r i b e d here w i l l be overcome as the m a t e r i a l s and t e c h n i q u e s s p r e a d through the i n d u s t r y . Y e t , c o s t c o n t r o l remains a c o n s t a n t o b j e c t i v e of b u i l d e r s and consumers a l i k e , and the ease w i t h which t h e s e methods are g r a s p e d and t r a n s l a t e d i n t o mass p r o d u c t i o n t e c h n i q u e s w i l l be r e f l e c t e d i n the c o s t i n c r e m e n t s t o consumers.. In o r d e r t o d etermine what means would be most e f f e c t i v e i n t e a c h i n g these t e c h n i q u e s t o b u i l d e r s and t h e i r t r a d e s , the b u i l d e r s were asked t o respond t o v a r i o u s a l t e r n a t i v e s . 6.3.5 A l t e r n a t i v e s To A i d D i f f u s i o n Of Techniques a. L i t e r a t u r e , Workshops And D e m o n s t r a t i o n P r o j e c t s There was c o n s i d e r a b l e disagreement among the b u i l d e r s i n t e r v i e w e d over which methods a v a i l a b l e t o government or HUDAC would be most e f f e c t i v e i n t e a c h i n g the t e c h n i q u e s of energy e f f i c i e n t c o n s t r u c t i o n t o the t r a d e s and b u i l d e r s . In f a c t , two b u i l d e r s f e l t t h e r e was no need f o r any form of e d u c a t i o n a l l i t e r a t u r e or programs t o a i d b u i l d e r s . One b u i l d e r b e l i e v e d " t h a t the b e s t s o l u t i o n s a r e from the bottom up, not the top down" . Four b u i l d e r s f e l t t r a d e l i t e r a t u r e was the most e f f e c t i v e way of r e a c h i n g b u i l d e r s and t r a d e s , c i t i n g the excess time r e q u i r e d t o a t t e n d workshops, which a r e u s u a l l y s c h e d u l e d d u r i n g w o r k i n g days. One b u i l d e r e x p r e s s e d h i s amazement a t the l a c k of l i t e r a t u r e a v a i l a b l e t o b u i l d e r s . The m a j o r i t y of the r e m a i n i n g b u i l d e r s f e l t t r a d e l i t e r a t u r e would be i n e f f e c t u a l because i t would l e a v e the onus e n t i r e l y on the i n d i v i d u a l 1 0 0 b u i l d e r or t r a d e s p e r s o n who would be u n l i k e l y t o take the i n i t i a t i v e r e q u i r e d . Workshops were ad v o c a t e d by f i v e Vancouver b u i l d e r s and two Regina b u i l d e r s , e i t h e r a l o n e , or i n c o m b i n a t i o n w i t h l i t e r a t u r e . I t s h o u l d be noted t h a t none of the b u i l d e r s who recommended workshops had had any r e c e n t e x p e r i e n c e s w i t h them, and the Vancouver b u i l d e r s would not g e n e r a l l y be as w e l l aware of the t e c h n i q u e s which would need t o be t a u g h t . The t h r e e Regina b u i l d e r s who chose d e m o n s t r a t i o n p r o j e c t s were undoubtedly i n f l u e n c e d by the su c c e s s of the Saskatoon Energy Showcase d e m o n s t r a t i o n p r o j e c t , which Regina b u i l d e r s agreed had he l p e d g r e a t l y i n i n c r e a s i n g b u i l d e r awareness and s p r e a d i n g t e c h n i c a l i n f o r m a t i o n . b. Other Methods S e v e r a l b u i l d e r s o f f e r e d i n s i g h t s i n t o the problem of s p r e a d i n g t e c h n i c a l i n f o r m a t i o n . They s t a t e d t h a t where new p r o d u c t s were i n v o l v e d , m a n u f a c t u r e r s i n c l u d e i n f o r m a t i o n t o b u i l d e r s on i n s t a l l a t i o n , and are a l s o u n d e r s t a n d a b l y a n x i o u s t o o f f e r any h e l p r e q u i r e d by the b u i l d e r i n u s i n g the p r o d u c t . However, i n the case of energy e f f i c i e n c y , the a r e a s where the t r a d e s a r e i n need of i n s t r u c t i o n a r e u n f o r t u n a t e l y not c o v e r e d by p r o d u c t m a n u f a c t u r e r s . The b u i l d e r s i n t e r v i e w e d who b u i l t under CMHC f i n a n c i n g i n the p a s t had h i g h p r a i s e f o r the knowledge and h e l p f u l n e s s of the CMHC i n s p e c t o r s . They each r e p o r t e d i n s t a n c e s of i n s p e c t o r s c l a r i f y i n g t e c h n i c a l p r o c e d u r e s or a c t u a l l y d e m o n s t r a t i n g i n s t a l l a t i o n p r a c t i c e s t o the t r a d e s on s i t e . Such on s i t e 1 0 1 i n s t r u c t i o n c o u l d be e x t r e m e l y u s e f u l i n advancing the d i f f u s i o n of energy c o n s e r v i n g b u i l d i n g t e c h n i q u e s among the t r a d e s . Two Vancouver b u i l d e r s , i n a d d i t i o n t o the energy e f f i c i e n t Regina b u i l d e r , r e p o r t e d u s i n g the knowledge of b u i l d i n g t e c h n i c i a n s a t the N a t i o n a l R esearch C o u n c i l t o answer q u e s t i o n s r e l a t i n g t o energy e f f i c i e n c y c o n s i d e r a t i o n s as w e l l as o t h e r b u i l d i n g problems. In f a c t , the energy e f f i c i e n t Regina b u i l d e r has based the m a j o r i t y of h i s energy e f f i c i e n t t e c h n i q u e s , and the d e s i g n of a i r - t o - a i r heat exchangers, on the e x t e n s i v e r e s e a r c h c a r r i e d out i n Saskatoon by the Saskatchewan and N a t i o n a l R e s e a r c h C o u n c i l s . T h i s b u i l d e r r e j e c t e d any of the t h r e e m e t h o d s — t r a d e l i t e r a t u r e , workshops or d e m o n s t r a t i o n p r o j e c t s , as b e i n g the " b e s t " approach. He s t a t e d t h a t the key was t o i n s t i l l i n the b u i l d e r a d e s i r e t o l e a r n new approaches, and t h a t the o n l y way t o c r e a t e t h i s d e s i r e was t h r o u g h market p u l l - - t h e consumer demanding energy e f f i c i e n t t e c h n i q u e s i n h o u s i n g . B u i l d e r s would then have a genuine d e s i r e t o l e a r n . T h i s view was s u p p o r t e d by s e v e r a l mass-market b u i l d e r s . The s u g g e s t i o n by one s m a l l Regina b u i l d e r t h a t " t r i a l and e r r o r " i s the b e s t method of l e a r n i n g r e f l e c t s the t r a d i t i o n a l approach by b u i l d e r s t o s o l v i n g problems. In the more advanced s t a g e s of energy e f f i c i e n c y , the t e c h n i c a l problems may not be amenable t o t h i s method of l e a r n i n g and s e v e r a l of the approaches j u s t d i s c u s s e d w i l l be r e q u i r e d t o reduce the time and waste i n h e r e n t i n a s t r i c t l y " t r i a l and e r r o r " approach. 1 02 6.4 MARKETABILITY OF ENERGY CONSERVATION 6.4.1 E x t e n t Of B u i l d e r M a r k e t i n g The i n c l i n a t i o n of a b u i l d e r t o use energy e f f i c i e n c y as a s e l l i n g f e a t u r e depends on h i s energy c o n s c i o u s n e s s , the e x t e n t t o which such f e a t u r e s a r e i n c l u d e d , the awareness of the consumer, and the s t a t u s of h i s c o m p e t i t o r s . Recent events i n Saskatchewan, such as the c o n s t r u c t i o n of the Saskatchewan C o n s e r v a t i o n House i n 1977, the Saskatoon Energy Showcase i n October of 1980, and more r e c e n t l y , , the Home Energy Loan Program, have r a i s e d consumer awareness above t h a t found elsewhere i n Western Canada. Most Regina b u i l d e r s i n t e r v i e w e d i n d i c a t e d t h a t a t l e a s t m e n t i o n i n g such items as i n s u l a t i o n v a l u e s t o p r o s p e c t i v e buyers has become a n e c e s s i t y r a t h e r than a s p e c i f i c m a r k e t i n g s t r a t e g y . The advantages of energy c o n s e r v i n g f e a t u r e s most commonly mentioned t o buyers were the p o t e n t i a l f o r f u e l s a v i n g s , and i n c r e a s e d r e s a l e v a l u e . The s p e c i a l t y b u i l d e r t h a t markets h i s homes s o l e l y on the c r i t e r i o n of energy e f f i c i e n c y , g u a r a n t e e s the p u r c h a s e r ' s h e a t i n g b i l l w i l l be under $150 per y e a r . The m a j o r i t y of the Regina b u i l d e r s used a l e s s a g g r e s s i v e m a r k e t i n g approach. They a r e below the l e v e l of e f f i c i e n c y of the two l e a d i n g mass-market b u i l d e r s and hence cannot market t h e i r homes as b e i n g more energy e f f i c i e n t , but must a t l e a s t respond t o the q u e s t i o n s of more aware Regina consumers d o i n g c o m p a r a t i v e s h o p p i n g . The Vancouver b u i l d e r s are d e a l i n g w i t h an e n t i r e l y d i f f e r e n t market s i t u a t i o n . A l t h o u g h most Vancouver b u i l d e r s 1 0 3 agreed t h a t the average h o u s i n g consumer i s becoming more c o n s c i o u s of energy e f f i c i e n c y , t h e i r c o ncern i s m i n i m a l compared t o Regina consumers. Hence, most Vancouver b u i l d e r s s t a t e d t h a t they o n l y mention energy e f f i c i e n c y f e a t u r e s when q u e s t i o n e d by the consumer. Only one Vancouver b u i l d e r (Number 7) has i n t r o d u c e d a s p e c i a l m a r k e t i n g s t r a t e g y c o o r d i n a t e d w i t h the u p g r a d i n g of h i s energy s t a n d a r d s . The d e c i s i o n t o e n t e r i n t o an energy e f f i c i e n c y m a r k e t i n g s t r a t e g y was a c o r p o r a t e d e c i s i o n t a k e n by t h i s f i r m ' s p a r e n t company. B u i l d e r 7 markets h i s homes on the b a s i s o f . p o s s i b l e f u e l s a v i n g s and i n c r e a s e d r e s a l e v a l u e i n a f u t u r e e r a of more energy e f f i c i e n t homes. The o v e r a l l a t t e n t i o n p a i d t o energy consumption by the home buyer, i n both Regina and Vancouver, i s s t i l l i n s i g n i f i c a n t when viewed a g a i n s t the i n f l u e n c e of the a e s t h e t i c f e a t u r e s . As one Regina b u i l d e r n o t e d , the k i t c h e n i s .more l i k e l y t o s e l l a house than i t s energy e f f i c i e n c y . G i v e n t h i s s t a t e of consumer awareness, the b u i l d e r s were asked t o i d e n t i f y the f e a t u r e s most r e a d i l y a c c e p t e d by the consumer, and h i s l e v e l of u n d e r s t a n d i n g of these f e a t u r e s . 6.4.2 R e a c t i o n Of The Housing Consumer B u i l d e r s i n both Regina and Vancouver agreed t h a t the average h o u s i n g consumer was becoming i n c r e a s i n g l y aware of the energy e f f i c i e n c y a s p e c t s of h o u s i n g . S t i l l , most b u i l d e r s a l s o e x p r e s s e d doubt over the consumer's a c t u a l knowledge of the t e c h n i q u e s and t h e i r o p e r a t i o n . B u i l d e r s i n Regina r e p o r t e d t h a t 2x6 i n c h w a l l c o n s t r u c t i o n and energy e f f i c i e n t f i r e p l a c e s were the two most a c c e p t e d energy c o n s e r v i n g f e a t u r e s . On the 1 04 west c o a s t , d o u b l e - g l a z i n g has been the f e a t u r e i n which consumers have e x p r e s s e d most i n t e r e s t . I n c r e a s e d i n s u l a t i o n was the o t h e r most commonly a c c e p t e d f e a t u r e i n Vancouver. Many b u i l d e r s mentioned t h a t two c o n d i t i o n s governed the degree t o which f e a t u r e s were a c c e p t e d by the ho u s i n g c o n s u m e r s — v i s i b i l i t y , and t h e i r u n d e r s t a n d i n g of the o p e r a t i o n . The importance of v i s i b i l i t y i s o b v i o u s . The acceptance of i n s u l a t i o n — - a f e a t u r e which cannot be s e e n — c a n be e x p l a i n e d by the f a c t t h a t i t i s a concept which i s e a s i l y u n d e r s t o o d by the u n s o p h i s t i c a t e d h o u s i n g consumer. A d d i t i o n a l l y , i t has r e c e i v e d e x t e n s i v e p u b l i c i t y t h r o u g h government and p r i v a t e a d v e r t i s e m e n t s . Double- g l a z i n g i s both e x t r e m e l y v i s i b l e and easy t o un d e r s t a n d . Energy e f f i c i e n t f i r e p l a c e s a r e a p p e a l i n g f o r a number of r e a s o n s . T r a d i t i o n a l l y , f i r e p l a c e s have m i s t a k e n l y been viewed as an energy saver by the home buyer, and as an a t t r a c t i v e a e s t h e t i c f e a t u r e . The i n t r o d u c t i o n of a bona f i d e energy c o n s e r v i n g f i r e p l a c e t o the market has not i n v o l v e d the i n t r o d u c t i o n of a new f e a t u r e t h a t must overcome consumer r e s i s t a n c e , o n l y an improved v e r s i o n t h a t has the added a t t r a c t i o n of b e i n g energy e f f i c i e n t . 6.4.3 D i f f e r e n c e s Among Target Markets I t i s i n t e r e s t i n g t o compare the e x p e r i e n c e s of b u i l d e r s by t h e i r t a r g e t m a r k e t — o r t h e i r average house p r i c e s . There i s a w e l l grounded b e l i e f t h a t second and subsequent home p u r c h a s e r s — g e n e r a l l y buyers p a r t i c i p a t i n g i n the h i g h e r p r i c e r a n g e s — a r e more s o p h i s t i c a t e d and d i s c e r n i n g b u y e r s . They have 1 0 5 a l r e a d y owned homes, are more a f f l u e n t , and more aware of the c o s t s of home o p e r a t i o n than a r e f i r s t - t i m e b u y e r s . Hence, the second-time buyer s h o u l d be more aware of energy e f f i c i e n c y , and more w i l l i n g t o pay the i n c r e m e n t a l c a p i t a l c o s t s f o r i t ( C o l l i n s ) . U n f o r t u n a t e l y , t h i s s tudy was not a b l e t o t e s t t h i s t h e o r y e x t e n s i v e l y , e s p e c i a l l y on the west c o a s t . R a p i d l y i n c r e a s i n g s i n g l e - f a m i l y house p r i c e s i n Vancouver have v i r t u a l l y e l i m i n a t e d the f i r s t - t i m e house buyer as a f a c t o r t h e r e . Most b u i l d e r s i n t e r v i e w e d s t a t e d the g r e a t m a j o r i t y of t h e i r c l i e n t s were move-up b u y e r s , i n many ca s e s t a k i n g advantage of the i n c r e a s e d e q u i t y i n t h e i r l a s t home i n or d e r t o re-mortgage and purchase a more e x p e n s i v e one. The sub-market t h a t was i n c l u d e d i n the sample of b u i l d e r s — c u s t o m home c o n s t r u c t i o n — r e v e a l e d one s u r p r i s i n g c o n c l u s i o n . Both custom b u i l d e r s i n t e r v i e w e d c l a i m e d t h e r e was f a r l e s s c o n c e r n over energy e f f i c i e n c y i n the custom home market than t h e r e was i n the s p e c u l a t i v e market. One of the b u i l d e r s s u g g e s t e d t h a t h i s c l i e n t s who ask about energy e f f i c i e n c y a r e concerned f o r v e r y d i f f e r e n t r e a s o n s . Custom home buyers t e n d t o accept energy c o n s e r v a t i o n because they f e e l i t i s s o c i a l l y a c c e p t a b l e r a t h e r than because of a p e r c e p t i o n t h a t i t w i l l d i r e c t l y b e n e f i t them. T h i s b u i l d e r f e l t t h a t the payback f o r t h i s c l a s s of home owners i s "b e i n g a b l e t o t e l l t h e i r f r i e n d s t h a t they have an energy e f f i c i e n t f i r e p l a c e " . A l t h o u g h the Regina s i n g l e - f a m i l y market i s s t i l l a c c e s s i b l e t o the f i r s t - t i m e b uyer, l i t t l e d i s t i n g u i s h a b l e d i f f e r e n c e was e v i d e n t among the energy e f f i c i e n c y s t a n d a r d s of b u i l d e r s c a t e r i n g t o the v a r i o u s sub-markets. Of c o u r s e , t h i s 106 f a c t does not deny the p o s s i b i l i t y t h a t f i r s t - t i m e buyers are l e s s demanding than second and subsequent h o u s i n g consumers; o n l y t h a t the d i f f e r e n c e i s not l a r g e enough t o show up i n the energy e f f i c i e n c y s t a n d a r d s of d i f f e r e n t b u i l d e r s . One reason f o r a l a c k of v a r i a t i o n c o u l d be the wide range of sub-markets i n which most b u i l d e r s were i n v o l v e d . For these b u i l d e r s , c h a n g i n g t h e i r s t a n d a r d s f o r d i f f e r e n t markets i s l i k e l y not worth the s a v i n g s . Thus energy e f f i c i e n c y s t a n d a r d s f o r a $55,000 home i n Regina a re u s u a l l y i d e n t i c a l t o those of a $100,000 home c o n s t r u c t e d by the same b u i l d e r . However, i t was found t h a t i n cases where b u i l d e r s were b e g i n n i n g t o o f f e r a new energy c o n s e r v i n g d e v i c e , such as a set- b a c k t h e r m o s t a t , the f e a t u r e was f i r s t i n t r o d u c e d i n the e x p e n s i v e homes. A d d i t i o n a l l y , minor v a r i a t i o n s i n f e a t u r e s which would a f f e c t energy e f f i c i e n c y , such wood v e r s u s metal s a s h , accompanied p r i c e d i f f e r e n c e s . Consumer response t o energy e f f i c i e n c y i s governed by an i n t e r a c t i o n of f a c t o r s i n c l u d i n g : t h e i r knowledge of the f e a t u r e s , the f e a t u r e ' s v i s i b i l i t y , i t s i n c r e m e n t a l c o s t , and the b uyer's p e r c e p t i o n of the energy problem. T h i s c o u l d pose a problem f o r b u i l d e r s who a r e g e n e r a l l y i g n o r a n t of many energy c o n s e r v i n g f e a t u r e s , and t h e i r c o s t - e f f e c t i v e n e s s , as w e l l as s k e p t i c a l and uncommitted toward energy c o n s e r v a t i o n as a whole. F o r t u n a t e l y f o r the average b u i l d e r , the c o m p e t i t i v e n e s s of the ho u s i n g market, and the i g n o r a n c e of the h o u s i n g consumer w i t h r e s p e c t t o energy e f f i c i e n c y , has s i m p l i f i e d h i s a l t e r n a t i v e s . 1 0 7 6.5 CONCLUSION The d i f f u s i o n of energy e f f i c i e n c y t h r ough the ho u s i n g i n d u s t r y i s an i n c r e m e n t a l p r o c e s s . No s i g n i f i c a n t v a r i a t i o n s i n t he l e v e l of energy e f f i c i e n c y were observed f o r any of the mass-market b u i l d e r s i n t e r v i e w e d . The d e c i s i o n on i n c r e a s i n g energy e f f i c i e n c y f o r the m a j o r i t y of b u i l d e r s i s based almost e n t i r e l y on what h i s c o m p e t i t o r s a re o f f e r i n g . No b u i l d e r a l l o w s h i m s e l f t o f a l l n o t i c e a b l y b e h i n d ; and c o n v e r s e l y , no b u i l d e r wishes t o exceed the s t a t u s quo t o the e x t e n t t h a t h i s r i s k s become unmanageable. H o w e v e r , . c e r t a i n b u i l d i n g f i r m s , l e d by more p r o g r e s s i v e managers, are en c o u r a g i n g e x p e r i m e n t s and i n n o v a t i o n r e s u l t i n g i n a s l i g h t l y h i g h e r r a t e of advance i n energy e f f i c i e n c y even w h i l e more t r a d i t i o n a l managers proceed w i t h energy e f f i c i e n c y improvements a t a more c a u t i o u s pace. Each type of f i r m c a t e r s t o the range of energy awareness t h a t they p e r c e i v e i n the market. The d e c i s i o n on whether t o i n c r e a s e an energy e f f i c i e n t s t a n d a r d above t h a t p r e v a i l i n g i n the market i s based on m a r k e t a b i l t y . I f an a d d i t i o n a l c a p i t a l e x p e n d i t u r e i s r e q u i r e d , a c h o i c e must be made between o f f e r i n g a "gimmick", such as a sunken b a t h t u b , or the more p r a c t i c a l , y e t l e s s v i s i b l e , i n s u l a t i o n or energy e f f i c i e n t f u r n a c e . The n a t u r e of the p r e s e n t h o u s i n g market i s such t h a t a t r a d i t i o n a l add-on u s u a l l y has more market a p p e a l , or i s p e r c e i v e d t o , than does an energy e f f i c i e n t f e a t u r e , e s p e c i a l l y i n Vancouver. Other energy e f f i c i e n c y d e t a i l s , such as a t i g h t e r a i r - v a p o u r b a r r i e r , have v i r t u a l l y no a p p e a l t o the v a s t m a j o r i t y of home p u r c h a s e r s , and 1 0 8 a d d i t i o n a l l y , have p r e s e n t e d b u i l d e r s w i t h c o n s t r u c t i o n problems. These f e a t u r e s a w a i t consumer demand or government r e g u l a t i o n b e f o r e they r e c e i v e w i d e s p r e a d a d o p t i o n i n Vancouver. In R e g i n a , the l e v e l of energy awareness by both consumer and b u i l d e r , a i d e d by i n c r e a s e d government i n v o l v e m e n t , has made such " i n v i s i b l e " improvements i n h o u s i n g c o n s t r u c t i o n m a r k e t a b l e . The m i l d c l i m a t e of Vancouver has c r e a t e d the i m p r e s s i o n among both b u i l d e r s and consumers t h a t energy s a v i n g s from many of the f e a t u r e s d i s c u s s e d here would be too i n s i g n i f i c a n t t o wa r r a n t s e r i o u s c o n s i d e r a t i o n . Of c o u r s e t h i s i s not t o d i s c o u n t the i n c r e m e n t a l improvements i n i n s u l a t i o n t h a t have a l r e a d y o c c u r r e d i n Vancouver, or the growing energy awareness t h a t w i l l undoubtedly be sharpened by r e c e n t energy p r i c e i n c r e a s e s . Throughout the i n t e r v i e w p r o c e s s , i t was apparent t h a t even though b u i l d e r s have been c a s t i n the r o l e of s e r v a n t t o consumer d e s i r e s and government r e g u l a t i o n , they have an c r i t i c a l p a r t i n a d v a n c i n g energy e f f i c e n c y . To i l l u s t r a t e , a wide range of b u i l d e r a t t i t u d e s and responses t o energy e f f i c i e n c y was uncovered: 1. The Vancouver b u i l d e r who a c t u a l l y persuades house . p u r c h a s e r s r e q u e s t i n g h i g h e r i n s u l a t i o n s t a n d a r d s t h a t a d d i t i o n a l e f f i c i e n c y f e a t u r e s (above h i s s t a n d a r d s ) are u n n ecessary and a wasted e x p e n d i t u r e , g i v e n B.C.'s "abundant energy r e s o u r c e s " . 2. The s e v e r a l R egina b u i l d e r s who s t a t e d they w i l l a ttempt t o d i s s u a d e people from a p p l y i n g f o r t h e Saskatchewan Energy Loan Program by c o n v i n c i n g them i t i s u n necessary and f a i l i n g t h i s , may g r e a t l y e x a g g e r a t e the i n c r e m e n t a l c o s t s r e q u i r e d t o meet the s t a n d a r d i n o r d e r t o prove t h e i r c a s e . 1 0 9 The Regina b u i l d e r who c o n s t r u c t s o n l y energy e f f i c i e n t h o u s i n g . G i v e n the many t e c h n i c a l , p e r c e p t u a l and knowledge problems j u s t d i s c u s s e d , i t i s apparent t h a t c o o r d i n a t e d government a c t i o n i s n e c e s s a r y . T h i s s t u d y has r e v e a l e d the importance of consumer demand i n a d v a n c i n g energy e f f i c i e n c y i n mass-market h o u s i n g . Thus, the p r o s p e c t i v e home pu r c h a s e r would appear t o be a c r i t i c a l t a r g e t f o r government programs. An e q u a l l y i m p o r t a n t c o n s i d e r a t i o n i s t h a t i n c r e a s i n g energy e f f i c i e n c y t h r o ugh f o c u s i n g consumer demand would be the most p o l i t i c a l l y a c c e p t a b l e means t o a c h i e v i n g t h i s g o a l . 1 10 CHAPTER 7: SUMMARY AND CONCLUSIONS 7.0 INTRODUCTION: THE PROBLEM RESTATED L i k e so many r e s o u r c e problems f a c i n g s o c i e t y t o d a y , the i s s u e of ad v a n c i n g the energy e f f i c i e n c y of new mass-market h o u s i n g t o c o n s e r v e energy r e s o u r c e s embraces s o c i a l , p o l i t i c a l and economic c o n t r a i n t s . In a d d i t i o n t o thes e g e n e r a l r e s i s t a n c e s , t h i s study has i d e n t i f i e d f o u r c r i t i c a l and i n t e r r e l a t e d problems t h a t a re the major impediments t o the d i f f u s i o n of i n c r e a s e d energy e f f i c i e n c y i n new h o u s i n g : 1. C u r r e n t energy p r i c e s , the p r i m a r y s i g n a l f o r energy c o n s e r v i n g investment i n a market economy, do not r e f l e c t the t r u e v a l u e of the energy r e s o u r c e . 2 . Because of i n a c c u r a t e energy p r i c e s , and the r e l a t i v e r e c e n t c o n c e r n w i t h energy e f f i c i e n c y , the v a l u e of energy e f f i c i e n t f e a t u r e s i s not y e t r e c o g n i z e d by the r e s a l e h o u s i n g market. 3. Because the r e s a l e v a l u e of energy e f f i c i e n c y has not been proven i n the market, i n v e s t o r s i n such f e a t u r e s must depend upon the investment p a y i n g f o r i t s e l f t h r o u gh energy s a v i n g s w i t h i n the p e r i o d of ownership; t y p i c a l l y l e s s than f i v e y e a r s and r a r e l y more than t e n . C u r r e n t energy p r i c e s , and t h i s s h o r t time h o r i z o n t o g e t h e r , r e s u l t i n s u b - o p t i m a l energy c o n s e r v i n g i n v e s t m e n t . 4. The f e d e r a l government has no e x p l i c i t power t o r e g u l a t e d i r e c t l y ; CMHC " R e s i d e n t i a l S t a n d a r d s " have gu i d e d the housi n g i n d u s t r y but have not r e c e n t l y advanced energy e f f i c i e n c y s i g n i f i c a n t l y i n ex c e s s of the p r e v a i l i n g l e v e l s . F u r t h e r m o r e , the p r o v i n c i a l governments have not e x e r c i s e d t h e i r r i g h t t o e n f o r c e mandatory energy e f f i c i e n c y r e g u l a t i o n s . 111 7.1 THE MAJOR FINDINGS T h i s study p o s i t s t h a t the b u i l d e r p l a y s a key r o l e i n promoting change i n the h o u s i n g i n d u s t r y . W h i l e t h i s assumption was c o n f i r m e d i n the i n v e s t i g a t i o n t h a t f o l l o w e d , the r e s u l t s n e c e s s i t a t e i t s r e e v a l u a t i o n and a r e c o g n i t i o n t h a t the h o u s i n g consumer i s a key " i n i t i a t o r " of change. In the absence of s t r i c t government r e g u l a t i o n of energy e f f i c i e n c y s t a n d a r d s , b u i l d e r s respond p r i m a r i l y t o consumer demand t o e f f e c t changes i n the i n d u s t r y . T h i s o c c u r s t h r o u g h b u i l d e r response t o consumer demand, as was seen i n the custom home market, or more i n d i r e c t l y i n the mass-market through c o m p e t i t i o n between the medium and l a r g e s i z e d b u i l d e r s . In Vancouver, t h i s c o m p e t i t i v e n e s s , combined w i t h the i n f l u e n c e t h a t CMHC g u i d e l i n e s 5 7 and B.C. Hydro recommendations have on the i n d u s t r y , i s c r e a t i n g a l e v e l of energy e f f i c i e n c y above what might be e x p e c t e d , g i v e n the g e n e r a l l y low l e v e l of consumer awareness. In R e g i n a , consumers and b u i l d e r s a l i k e have been exposed t o more i n f o r m a t i o n on energy e f f i c i e n t h o u s i n g from s o u r c e s such as the Saskatchewan Energy Showcase and the Saskatoon C o n s e r v a t i o n House. In a d d i t i o n , c l i m a t i c f a c t o r s have h i s t o r i c a l l y n e c e s s i t a t e d a g r e a t e r c o n c e r n w i t h i n s u l a t i o n and the q u a l i t y of house c o n s t r u c t i o n . I n t h i s r e g i o n , consumer demand has had a g r e a t e r i n f l u e n c e on b u i l d e r s ' s t a n d a r d s than has been the case i n Vancouver. 5 7 0 t h e r a g e n c i e s such as the f e d e r a l and p r o v i n c i a l energy m i n i s t r i e s and departments have a l s o p l a y e d a p a r t i n r a i s i n g consumer awareness. 1 1 2 While a market movement toward g r e a t e r energy e f f i c i e n c y , c r e a t e d hy the i n t e r d e p e n d e n c e of consumer demand, government i n i t i a t i v e s , and the g r e a t e r g e n e r a l energy awareness i n the ho u s i n g i n d u s t r y was e v i d e n t i n both r e g i o n s , i t was more advanced i n R e g i n a . T h i s market s h i f t had two c h a r a c t e r i s t i c s : : 1) the emergence of one or more mass-market b u i l d e r s i n each r e g i o n who have d e c i d e d t o b u i l d t o a s l i g h t l y h i g h e r S t a n d a r d than t h a t p r e v a l e n t i n the market, and thus shape f u t u r e consumer demand t o some e x t e n t ; 2) c o m p e t i t i o n among b u i l d e r s on the b a s i s of energy e f f i c i e n c y . C l i m a t e was the most r e a d i l y apparent reason f o r the d i f f e r i n g energy awareness and b u i l d i n g s t a n d a r d s between Regina and Vancouver. , In f a c t , c l i m a t i c v a r i a t i o n was such an overpowering f a c t o r t h a t few of the d i f f e r e n c e s observed i n energy awareness and s t a n d a r d s between the two a r e a s c o u l d be c a u s a l l y l i n k e d t o h o u s i n g market c o n d i t i o n s . Only the f o l l o w i n g p o s s i b i l i t i e s c o u l d be e s t a b l i s h e d . 1. R a p i d l y r i s i n g house p r i c e s i n Vancouver and an e x t r e m e l y buoyant market ( d u r i n g the st u d y p e r i o d ) a l l o w e d b u i l d e r s t o i n c r e a s e t h e i r s t a n d a r d s w i t h o u t any market r e s i s t a n c e . A c u r r e n t s t a g n a t i o n i n the market w i l l h i n d e r market i n i t i a t e d i n c r e a s e s i n the immediate f u t u r e . 2. The h i g h e r average house p r i c e s and r a p i d p r i c e i n c r e a s e i n Vancouver made c a p i t a l c o s t i n c r e a s e s of $600 t o $ 8 0 0 5 8 i n the p a s t two y e a r s u n r e c o g n i z e a b l e and c o u l d have a l l o w e d much g r e a t e r i n c r e a s e s i n energy e f f i c i e n c y w i t h l i t t l e r i s k t o the b u i l d e r . 3. A s t a g n a n t market i n Regina i n 1979 and 1980 c o u l d have slowed the d i f f u s i o n of h i g h e r energy e f f i c i e n c y 5 8 T h e s e e s t i m a t e s e x c l u d e the c o s t s of d o u b l e - g l a z i n g which was a l r e a d y p r e v a l e n t i n 1979. 1 1 3 f e a t u r e s somewhat and c u r r e n t s t a n d a r d s would p r o b a b l y be h i g h e r g i v e n a more buoyant market i n the r e c e n t p a s t . 4. The i n f l u e n c e of market c o n d i t i o n s on the d i f f u s i o n of energy e f f i c i e n t h o u s i n g tends t o be g r e a t e r i n Regina because of lower average house p r i c e s , g r e a t e r i n c r e m e n t a l c a p i t a l c o s t s of the r e q u i r e d t e c h n i q u e s , and the consequent g r e a t e r p e r c e n t a g e i n c r e a s e i n t o t a l h o u s i n g c o s t s t h a t energy c o n s e r v i n g f e a t u r e s r e p r e s e n t . The more d e t a i l e d , f i n d i n g s from the i n t e r v i e w s w i t h b u i l d e r s a r e summarized i n Appendix 2. 7.2 JUSTIFICATION FOR GOVERNMENT INTERVENTION The problem of a r t i f i c i a l l y low energy p r i c e s and the s h o r t time h o r i z o n of consumers i s not unique t o t h e r e s i d e n t i a l s e c t o r ; i t i s c a u s i n g s u b - o p t i m a l energy c o n s e r v i n g investment i n a l l s e c t o r s of the economy. Such major m i s a l l o c a t i o n s of r e s o u r c e s u s u a l l y j u s t i f y some form of government i n t e r v e n t i o n t o c o r r e c t market f a i l u r e s . Perhaps nowhere i n the economy i s the j u s t i f i c a t i o n g r e a t e r than i n the r e s i d e n t i a l s e c t o r . R e s i d e n t i a l b u i l d i n g s a r e f u n d a m e n t a l l y d i f f e r e n t than most o t h e r energy consuming p r o d u c t s . They p r o v i d e one of man's e s s e n t i a l needs, have a l o n g l i f e - c y c l e and w i l l p r o b a b l y be used by more than one g e n e r a t i o n . C o n s e q u e n t l y , at some p o i n t i n t h e i r l i f e , they w i l l be used by i n d i v i d u a l s who have had no c h o i c e i n the o r i g i n a l d e s i g n and c o n s t r u c t i o n , and y e t they cannot be e a s i l y r e p l a c e d i f they prove l e s s than s a t i s f a c t o r y a t some f u t u r e d a t e . I t i s apparent t h a t the l a r g e r p u b l i c i n t e r e s t t r a n s c e n d s the i n d i v i d u a l i n t e r e s t i n t h i s i n s t a n c e ( D i c k e n s and W i l s o n , p.202). Thus, measures t o promote energy c o n s e r v a t i o n i n 1 1 4 r e s i d e n t i a l b u i l d i n g s a r e not so much t o p r o t e c t the o r i g i n a l consumer as they a re t o p r o t e c t a l l c u r r e n t and f u t u r e owners and c o n s e r v e an e s s e n t i a l r e s o u r c e f o r the broader w e l f a r e of s o c i e t y . Y e t , t h i s study found t h a t the energy e f f i c i e n c y of new h o u s i n g i s based d i r e c t l y on the economic c o n s t r a i n t s imposed by the o r i g i n a l p u r c h a s e r . Compounding the problem i s the low l e v e l of consumer knowledge. D i s c u s s i o n s w i t h b u i l d e r s r e v e a l e d t h a t t y p i c a l h o u s i n g consumers are g e n e r a l l y aware of the need f o r g r e a t e r energy e f f i c i e n c y , but uninformed about the t e c h n i q u e s , t h e i r o p e r a t i o n and the a c t u a l c o s t s and b e n e f i t s of c o n s e r v i n g energy. Thus, the consumer demand t h a t has such a p o w e r f u l i n f l u e n c e . o n i n i t i a t i n g b u i l d e r response and i n c r e a s i n g energy e f f i c i e n c y i s l a r g e l y u n informed. But even g i v e n g r e a t e r knowledge, consumers would remain uncommitted t o energy e f f i c i e n t h o u s i n g beyond the l e v e l which promised f o r s e e a b l e b e n e f i t s . I t i s t h i s next l e v e l of energy c o n s e r v i n g investment which w i l l b e n e f i t f u t u r e owners and s o c i e t y g e n e r a l l y but which i s u n a t t a i n a b l e w i t h o u t government i n t e r v e n t i o n g i v e n p r e s e n t market c o n s t r a i n t s . These c i r c u m s t a n c e s , c o u p l e d w i t h the i n a c c u r a c y . o f c u r r e n t energy p r i c e s b u i l d s a s t r o n g argument f o r some form of government i n t e r v e n t i o n . 7 . 3 IMPLICATIONS FOR FUTURE POLICY An e f f e c t i v e s t r a t e g y t o speed the a d o p t i o n of energy e f f i c i e n t h o u s i n g must be a t h o u g h t f u l c o m b i n a t i o n of r e g u l a t i o n , i n c e n t i v e s and i n f o r m a t i o n programs which r e c o g n i z e s the c o m p l e x i t y of the s o c i a l , economic and p o l i t i c a l g o a l s and 1 1 5 c o n s t r a i n t s i n our s o c i e t y . I t must c o n t a i n a package of complimentary measures t o d e a l w i t h the b a r r i e r s imposed by our c u r r e n t s o c i a l and r e g u l a t o r y systems, i n f o r m consumers and b u i l d e r s of the a p p r o p r i a t e energy c o n s e r v i n g s t e p s and o f f e r i n c e n t i v e s or o t h e r w i s e a m e l i o r a t e the impacts of h i g h e r energy p r i c e s on low-income i n d i v i d u a l s . P a s t government e f f o r t s t o a i d energy c o n s e r v a t i o n have u s u a l l y e n t a i l e d o n l y one p o l i c y a c t i o n , be - i t r e g u l a t i o n , i n c e n t i v e s or i n f o r m a t i o n . The s t r a t i f i e d n a t u r e of government powers p e r m i t s the f e d e r a l government t o o f f e r energy c o n s e r v a t i o n i n c e n t i v e s , w h i l e g i v i n g the p r o v i n c i a l government i n B.C., and the p r o v i n c i a l and m u n i c i p a l governments i n Saskatchewan powers t o r e g u l a t e . W h i l e c e r t a i n s t e p s n e c e s s a r y i n energy c o n s e r v a t i o n programs would be best c a r r i e d out a t the l o c a l l e v e l , the f i n a n c i a l c a p a b i l i t y i s l a c k i n g a t t h i s l e v e l . Thus, the c l o s e c o o p e r a t i o n between a l l t h r e e l e v e l s of government i s n e c e s s a r y f o r a comprehensive and e f f e c t i v e energy c o n s e r v a t i o n program i n the r e s i d e n t i a l s e c t o r . 7.3.1 Energy P r i c i n g Energy p r i c e i n c r e a s e s are the s i n g l e most e f f e c t i v e l o n g -run t e c h n i q u e f o r e n c o u r a g i n g c o n s e r v a t i o n i n a market economy (Nemetz, Hankey, Z e t h o f f , p. 12). The r e c e n t agreement between Ottawa and A l b e r t a has i n s t i t u t e d a s c h e d u l e of s h a r p l y i n c r e a s e d p r i c e s . W h i l e i t i s t o o e a r l y t o gauge the e f f e c t of these i n c r e a s e s i n b r i n g i n g the p r i c e of energy c l o s e r t o i t s t r u e s o c i a l v a l u e , they w i l l a c t t o improve the economics of i nvestment i n energy e f f i c i e n c y . 116 Two o t h e r p r i c i n g r e l a t e d i s s u e s r e q u i r e r e s o l u t i o n — t h e c o n t i n u e d use of d e c l i n i n g b l o c k r a t e s by u t i l i t i e s (making each a d d i t i o n a l amount of energy consumed cheaper) and the use of " e q u a l payment p l a n " b i l l i n g , which d i s g u i s e s the economic b e n e f i t s of energy c o n s e r v a t i o n . -7.3.2 R e g u l a t i o n A d o p t i o n of the "Measures f o r Energy C o n s e r v a t i o n i n New B u i l d i n g s 1978" would r a i s e c o n s t r u c t i o n c o s t s l e s s than one p e r c e n t , would be e a s i l y a d m i n i s t e r e d and would a c t t o s t a n d a r d i z e the l e v e l of energy e f f i c i e n c y a c r o s s the h o u s i n g i n d u s t r y at a p p r o x i m a t e l y c u r r e n t l e v e l s , thus p r o t e c t i n g consumers. R e g u l a t i n g above these s t a n d a r d s would i n v o l v e s e v e r a l c o n s i d e r a t i o n s : 1) The l e v e l of energy e f f i c i e n c y t h a t b u i l d e r s c o u l d c o m p e t e n t l y c o n s t r u c t u s i n g p r e s e n t p r a c t i c e s . 2) The c o s t increment of t h i s i n c r e a s e and i t s impact on h o u s i n g a f f o r d a b i l i t y . 3) The complimentary programs o f f e r e d by government t o educate the b u i l d e r and a m e l i o r a t e the e f f e c t s of h i g h e r house p r i c e s on m a r g i n a l , f i r s t - t i m e b u y e r s . 4) The a b i l i t y of m u n i c i p a l i t i e s t o e n f o r c e the new s t a n d a r d s , ( i . e . i f the s t a n d a r d s i n c o r p o r a t e s i g n i f i c a n t performance s e c t i o n s , the a d m i n i s t r a t i o n c o s t s would r i s e ) . G i ven the l o n g - t e r m i n v e s t m e n t , the s h o r t time h o r i z o n of the t y p i c a l consumer, and the l a c k of i n f o r m a t i o n , t h e r e i s adequate j u s t i f i c a t i o n f o r r e g u l a t i o n above the 1978 "Measures" t o a c h i e v e a s o c i a l good. 1 1 7 7.3.3 I n f o r m a t i o n Throughout t h i s i n v e s t i g a t i o n , knowledge b a r r i e r s t o i n c r e a s i n g energy e f f i c i e n c y were e n c o u n t e r e d a t the b u i l d e r l e v e l , w h i l e b u i l d e r s a l s o d e s c r i b e d the low l e v e l of consumer knowledge. I n f o r m a t i o n on p r o p e r b u i l d i n g t e c h n i q u e s a r e i n most i n s t a n c e s r e a d i l y a v a i l a b l e t o b u i l d e r s from such s o u r c e s as HUDAC, CMHC and NRC. However the b u i l d e r must p e r c e i v e the need f o r such i n f o r m a t i o n b e f o r e he w i l l seek i t . I n f o r m a t i o n on energy e f f i c i e n t h o u s i n g f o r the consumer i s not so r e a d i l y a v a i l a b l e . , Government programs t o educate the p u b l i c have been non-s p e c i f i c , d e s i g n e d t o educate the consumer t o the need and methods f o r energy c o n s e r v a t i o n i n a l l s e c t o r s of the economy. Much more s p e c i f i c i n f o r m a t i o n i s r e q u i r e d i n the h o u s i n g s e c t o r , such as t h a t p r o v i d e d by the Energy Showcase i n Saskatoon. Consumer knowledge of the o p e r a t i o n , c o s t s and b e n e f i t s of energy c o n s e r v i n g t e c h n i q u e s would f o r c e b u i l d e r s t o make use of t e c h n i c a l i n f o r m a t i o n a v a i l a b l e t o t h e m . 5 9 Assuming t h a t i n f o r m e d consumers w i l l m o t i v a t e b u i l d e r s t o i n c r e a s e energy e f f i c i e n c y , s e v e r a l a d d i t i o n a l programs c o u l d be c o n s i d e r e d : 1. R i s i n g h e a t i n g c o s t s w i l l u n d oubtedly f o r c e p r i v a t e l e n d e r s t o i n c o r p o r a t e them i n t h e i r c a l c u l a t i o n of mortgage e l i g i b i l i t y , making h e a t i n g c o s t s a more 5 9 E d u c a t i o n would a l s o h e l p p r o t e c t consumers from u n s c r u p u l o u s b u i l d e r s who a r e t a k i n g advantage of r e c e n t energy c o n s e r v a t i o n awareness by a d v e r t i s i n g t h e i r homes as b e i n g "energy e f f i c i e n t " when i n r e a l i t y they have i n c o r p o r a t e d o n l y v e r y m i n i m a l improvements. 1 18 v i s i b l e i tem t o the c o n s u m e r . 6 0 2. Most b u i l d e r s i n t e r v i e w e d were u s i n g between f o u r and e i g h t s t o c k p l a n s which c o u l d be e v a l u a t e d f o r energy consumption. The r e s u l t s c o u l d then be p u b l i s h e d t o a l l o w h o u s i n g consumers t o compare energy e f f i c i e n c y , as i s now the case f o r the new a u t o m o b i l e p u r c h a s e r . 3. To encourage energy c o n s e r v i n g l i f e s t y l e s , u t i l i t y companies c o u l d i n c l u d e p a s t energy consumption l e v e l s on each energy b i l l i n o r d e r t o p r o v i d e a bench mark a g a i n s t which c u r r e n t consumption c o u l d be compared. 7.3.4 I n c e n t i v e s D u r i n g the p r e s e n t p e r i o d of energy p r i c e s u b s i d i e s , a d d i t i o n a l s u b s i d i e s t o consumers f o r the purchase of energy s a v i n g f e a t u r e s would appear t o be an i n e f f i c i e n t s o l u t i o n , e q u i v a l e n t t o double s u b s i d y . Y e t , i t i s p o s s i b l e t o j u s t i f y i n c e n t i v e s or s u b s i d i e s t o encourage investment i n energy s a v i n g f e a t u r e s a f t e r the market i s r e c e i v i n g a p p r o p r i a t e energy p r i c e s i g n a l s . I f p e r f e c t i n f o r m a t i o n on a l l a s p e c t s of energy c o n s e r v a t i o n would r e s u l t i n s o c i a l l y o p t i m a l c h o i c e s i n energy c o n s e r v i n g measures by b u i l d e r s and consumers, no o t h e r government a c t i o n s s h o u l d be n e c e s s a r y . However, p e r f e c t i n f o r m a t i o n i s not a v a i l a b l e today and may never be. Moreover, 6 0CMHC has a l r e a d y ( J u l y , 1981) i n t r o d u c e d a program whereby a n n u a l h e a t i n g c o s t s a r e i n c l u d e d i n the c a l c u l a t i o n of Gross Debt S e r v i c e which has been i n c r e a s e d from 30 p e r c e n t t o a maximum of 32 p e r c e n t t o accommodate the i n c r e m e n t a l c a p i t a l c o s t s . 119 t h e r e a r e two m i t i g a t i n g f a c t o r s t o c o n s i d e r . F i r s t , the s h o r t time h o r i z o n of t y p i c a l home p u r c h a s e r s b i a s e s the investment d e c i s i o n t o w a r d a s h o r t - t e r m p a y o f f , r e s u l t i n g i n an i n e f f i c i e n t a l l o c a t i o n of energy over the l i f e of the home. Second, even i f the energy c o n s c i o u s n e s s of consumers was r a i s e d t h r o u g h i n f o r m a t i o n programs, i n c e n t i v e s may be needed t o t r a n s l a t e i t i n t o e f f e c t i v e demand, e s p e c i a l l y f o r m a r g i n a l . f i r s t - t i m e b u y e r s . C o n s e q u e n t l y , t h e r e i s j u s t i f i c a t i o n f o r s e l e c t e d i n c e n t i v e s t o improve the terms of the investment f o r the s h o r t -term owner and produce energy c o n s e r v i n g investment more c o n s i s t e n t w i t h the l o n g l i f e span of the house. These i n c e n t i v e s c o u l d take one of s e v e r a l forms, i n c l u d i n g t a x c r e d i t s , lower i n t e r e s t mortgages or d i r e c t g r a n t s , a l l a t the consumer l e v e l . 7.4 AREAS FOR ADDITIONAL RESEARCH Government i n t e r v e n t i o n was g e n e r a l l y not f a v o u r e d by the b u i l d e r s e x cept i n a l i m i t e d r o l e of i n f o r m a t i o n d i s s e m i n a t i o n . Yet t h i s s t u d y has shown t h a t government must take a f a r more comprehensive approach i f r a p i d improvement i n h o u s i n g energy e f f i c i e n c y i s t o o c c u r . Each of the f o r e g o i n g government o p t i o n s s u g g e s t s numerous a r e a s of a d d i t i o n a l r e s e a r c h i n c l u d i n g : 1. A t h o r o u g h i n v e s t i g a t i o n and r a t i o n a l i z a t i o n of the s o c i a l and p r i v a t e c o s t s and b e n e f i t s of r e s i d e n t i a l energy c o n s e r v a t i o n t o d e t e r m i n e whether t h e r e i s s u f f i c i e n t j u s t i f i c a t i o n f o r an i n c e n t i v e program, or whether r e g u l a t i o n would be a more e f f i c i e n t s o l u t i o n ; and, t o a s s e s s the approximate n a t i o n a l c o s t s and s o c i a l b e n e f i t s t h a t would be o b t a i n e d i n each c a s e . 1 20 2. A d e t a i l e d economic a n a l y s i s of the c o s t s and b e n e f i t s of energy e f f i c i e n t h o u s i n g from the homeowner's p e r s p e c t i v e . S p e c i f i c a l l y , the f o r m u l a t i o n of v a r i o u s s c e n a r i o s i n c o r p o r a t i n g s e v e r a l l e v e l s of energy e f f i c i e n c y s t a n d a r d s under s e v e r a l p r o j e c t i o n s of energy p r i c e i n c r e a s e s a t d i f f e r e n t d i s c o u n t r a t e s f o r d i f f e r e n t c l i m a t i c l o c a t i o n s . 3. An i n v e s t i g a t i o n i n t o the p r o c e s s by which r e n t a l h o u s i n g i s g e n e r a t e d , and the i n h e r e n t problems w i t h i n c r e a s i n g energy e f f i c i e n c y i n t h i s p a r t of the r e s i d e n t i a l market. The d i f f e r e n t t y p e s of h o u s i n g i n the r e n t a l market, and the p r o b a b i l i t y t h a t the b u i l d e r , owner and o p e r a t o r a r e a l l d i f f e r e n t i n d i v i d u a l s , c r e a t e s economic, s o c i a l , and r e g u l a t o r y b a r r i e r s unique t o t h i s market. 4 . Much more d e t a i l e d i n f o r m a t i o n i s r e q u i r e d on a l l a s p e c t s of p a s s i v e s o l a r h e a t i n g . One c r i t i c a l a r e a i s t o a s s e s s the r e l a t i v e c o s t s and s a v i n g s t o be o b t a i n e d from the major o p t i o n s f o r i m p r o v i n g the t h e r m a l r e s i s t a n c e of the b u i l d i n g e n v e l o p e , compared to the c o s t s and s a v i n g s from p a s s i v e s o l a r d e s i g n f o r the most populous a r e a s i n Canada. Thus the most c o s t - e f f e c t i v e improvements c o u l d be known at each stage of i m p r o v i n g energy e f f i c i e n c y f o r Canadian l o c a t i o n s where most new c o n s t r u c t i o n w i l l o c cur i n the coming decades. 1 2 1 REFERENCES Bro o k s , D a v i d Zero Energy Growth f o r Canada, T o r o n t o : M c C e l l a n d and Stewart Co., 1981. Brown, Steven M. 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Nemetz, P e t e r N., Hankey, M a r i l y n and Z e t h o f f , B e r t Economic  I n c e n t i v e s f o r Energy C o n s e r v a t i o n a t the Consumer  L e v e l i n Canada, Consumer and C o r p o r a t e A f f a i r s Canada, 1980. Nemetz, P e t e r N. (ed.) Energy P o l i c y : The G l o b a l C h a l l e n g e , T o r o n t o : B u t t e r w o r t h & Co., 1979. N o r t h , F.K. "Canada's O i l and Gas R e s o u r c e s " , G e o s c i e n c e Canada 1(March, 1974) : 24-30 O'Riordan, Joan P. and M i g a n i , Joseph C. " B a r r i e r s t o Implementing Energy C o n s c i o u s D e s i g n i n Housing", P r o c e e d i n g s of 4 t h N a t i o n a l P a s s i v e S o l a r C o n f e r e n c e ,  A.S.T.S.E.S. Kansas- C i t y , M i s s o u r i , October 3-5, 1979. R e v i s e d S t a t u t e of B r i t i s h C olumbia, 1979, The M u n i c i p a l A c t , Chapter 290. Rogoza, Dennis D. "Energy E f f i c i e n t Mass Housing: A B u i l d e r ' s P e r s p e c t i v e " , p r e s e n t e d t o : A Symposium on Energy and  Community P l a n n i n g on the P r a i r i e s , R e g i n a , May 10, 1979. Rogoza, Dennis D, and Gordon, Kenneth C u r r e n t S t a t u s of the  House B u i l d i n g I n d u s t r y i n Saskatchewan and  I n d e n t i f i c a t i o n F a c t o r s I n v o l v e d i n Improving Housing 124 D e s i g n , Study done f o r Energy, Mines and Resources, Canada, A p r i l , 1979. Saskatchewan M i n e r a l Resources - O f f i c e of Energy C o n s e r v a t i on, Something New Under the Sun, The Saskatchewan  C o n s e r v a t i o n House P r e l i m i n a r y P r o j e c t R e p o r t , October 1980. Socolow, Robert H. "The Twin R i v e r s Program on Energy C o n s e r v a t i o n i n H o u s i n g : H i g h l i g h t s and C o n c l u s i o n s " , Energy and B u i l d i n g s 1 ( A p r i l , 1978): 207-242 Steadman, P h i l l i p Energy, Environment and B u i l d i n g , Cambridge: Cambridge U n i v e r s i t y P r e s s , 1975. S t a t u t e of Saskatchewan, 1970, The Urban M u n i c i p a l i t y A c t , Chapter 78. Swain, C P . " L e g i s l a t i o n and Energy C o n s e r v a t i o n " i n p r o c e e d i n g s of Conference on Energy C o n s e r v a t i o n and  Energy Management i n B u i l d i n g s , pp. 17-41. E d i t e d by A.F.C. S h e r r a t t . London: A p p l i e d S c i e n c e P u b l i s h e r s L t d . , 1976. T a l b o t t , D a n i e l W. and Johnson, R a l p h J . "What the B u i l d e r Needs b e f o r e He W i l l Use P a s s i v e S o l a r T e c h n iques," P r o c e e d i n g s of the 4 t h N a t i o n a l P a s s i v e S o l a r  C o nference A.S.I.S.E.S. Kansas C i t y , M i s s o u r i , October 3-5, 1979. Towle, Sharyn "User E v a l u a t i o n Study of P a s s i v e S o l a r R e s i d e n c e s " , P r o c e e d i n g s of 4th N a t i o n a l P a s s i v e s o l a r  C o n f e r e n c e , A.S.I.S.E.S. Kansas C i t y , M i s s o u r i , Oct. 3-5, 1979. Weber, Stephen F. "Cost e f f e c t i v e n e s s of Energy C o n s e r v a t i o n Investments i n New U n i t e d S t a t e s R e s i d e n c e s " , i n Energy C o n s e r v a t i o n i n the B u i l t Environment, pp. 141-152. E d i t e d by K j e l d Johnsen. Copenhagen: D a n i s h B u i l d i n g R esearch I n s t i t u t e , 1979. W h i t e l e y , Don " R e s i g n a t i o n D a l a y s Study of Gas P r i c e s " , Vancouver Sun, 18 A p r i l 1981, S e c t . H, p.1. W i l l s o n , Bruce F. The Energy Squeeze: Canadian P o l i c i e s f o r  S u r v i v a l , T o r o n t o : James L o r i m e r & Company, 1 25 P u b l i s h e r s , 1980. W o l c o t t , D a v i d R. "A Communication S t r a t e g y t o C o m m e r c i a l i z e P a s s i v e S o l a r " , P r o c e e d i n g s of 4 t h N a t i o n a l P a s s i v e  S o l a r C o n f e r e n c e , A.S.I.S.E.S. Kansas C i t y , M i s s o u r i , Oct. 3-5, 1979. 1 26 OTHER SOURCES C o l l i n s , F r e d A r c h i t e c t , Vancouver I n t e r v i e w , November. 12, 1980 Droettboom, Ted A s s o c i a t e D i r e c t o r of P l a n n i n g , C i t y of Vancouver, I n t e r v i e w , October 22, 1980 Dulanowsky, John S e n i o r B u i l d i n g I n s p e c t o r , CMHC, Regi n a , I n t e r v i e w , A p r i l 27, 1981 Edmundson, M a r t i n R e s e a r c h O f f i c e r , O f f i c e of Energy C o n s e r v a t i o n , Department of M i n e r a l R e s o u r c e s , Government of Saskatchewan, I n t e r v i e w , A p r i l 16, 1981 H i l l , James D i r e c t o r , C o n s e r v a t i o n and Renewable Energy Branch, B.C. M i n i s t r y of Energy, Mines and P e t r o l e u m , I n t e r v i e w , October 15, 1980 H u l b e r t , R i c k A r c h i t e c t , Vancouver, I n t e r v i e w , November 5, 1980 Jamieson, A l e x P l a n n e r , M u n i c i p a l i t y of Richmond, P e r s o n a l Communication, September 17, 1981 M c K i n l a y , Ken E x e c u t i v e D i r e c t o r , HUDAC R e g i n a , I n t e r v i e w , A p r i l 20, 1981 Smith, Joe S e n i o r B u i l d i n g I n s p e c t o r , CMHC, Vancouver, i n t e r v i e w , May 14, 1981 Weber, Andy B u i l d i n g E n g i n e e r , C i t y of Vancouver, I n t e r v i e w , J u l y 28, 1981 APPENDIX 1--QUESTIONNAIRE 1 28 1. What a r e your c u r r e n t d u t i e s w i t h the company? 2. A p p r o x i m a t e l y how many s i n g l e - f a m i l y homes do you c o n s t r u c t per y e a r ? 3. For what market or p r i c e range were most of the s e u n i t s c o n s t r u c t e d ? .4.. How many y e a r s 5. Do you employ c o m b i n a t i o n of 6. What i s your view (or the view of the f i r m ) of the s e r i o u s n e s s of the energy problem? 7. What do you know about the energy consumption of the u n i t s you c o n s t r u c t ? How do you know t h i s ? 8. How many s t a n d a r d d e s i g n s do you use? 9. To what e x t e n t do you a l l o w f o r v a r i a t i o n from these d e s i g n s ? 10. On what b a s i s a r e d e c i s i o n s made about a s p e c t s of d e s i g n t h a t a f f e c t energy consumption? 11. Have t h e r e been any r e c e n t changes i n your c o n s t r u c t i o n s t a n d a r d s or d e s i g n t o reduce energy consumption? 12. What brought about t h e s e changes? 13. Are they s t a n d a r d or o p t i o n a l ? 14. What e f f e c t have they had on the p r i c e of the home? 15. Do you know the c o s t - e f f e c t i v e n e s s ( i . e . payback) of these f e a t u r e s ? I f n o t , on what b a s i s do you d e c i d e which f e a t u r e s w i l l be o f f e r e d ? 16. Has t h e r e been any c o n s i d e r a t i o n of i n c o r p o r a t i n g p a s s i v e s o l a r d e s i g n ? 17. Have any changes i n c o n s t r u c t i o n or d e s i g n r e l a t e d t improvements r e q u i r e d a change i n c o n s t r u c t i o n methods and i f so, what problems have a r i s e n ? has the f i r m been i n o p e r a t i o n ? your own t r a d e s , s u b - c o n t r a c t or use a both? 1 29 18. Do you f o r e s e e any d i f f i c u l t i e s of t h i s n a t u r e i n the f u t u r e ? 19. D i d you r e q u i r e any s p e c i a l i n f o r m a t i o n t o employ any of the energy c o n s e r v i n g f e a t u r e s which you use? Where d i d you a c q u i r e t h i s i n f o r m a t i o n ? 20. What do you f e e l would be the best means of s p r e a d i n g such i n f o r m a t i o n among mass-market b u i l d e r s ? 21. What energy c o n s e r v i n g measures employed have been the most r e a d i l y a c c e p t e d by the h o u s i n g consumer? 22. On what b a s i s and t o what e x t e n t do you market energy r e l a t e d d e s i g n or c o n s t r u c t i o n f e a t u r e s ? 23. Do you know of any changes i n your c o m p e t i t o r ' s d e s i g n s i n t r o d u c e d t o reduce energy consumption? 24. What changes i n b u i l d i n g codes, energy p r i c e s , h o u s i n g consumer a t t i t u d e s and f u r t h e r d e s i g n and c o n s t r u c t i o n changes do you f o r e s e e ? 25. Do you f e e l government a c t i o n i s n e c e s s a r y t o a i d the d i f f u s i o n of energy e f f i c i e n t h o u s i ng? What type of a i d do you f e e l i s most needed and would be most e f f e c t i v e i n a t t a i n i n g the g o a l of i n c r e a s e d energy e f f i c i e n c y ? APPENDIX 2 -- FINDINGS - BUILDER INTERVIEWS 131 A. The B u i l d e r s ' Energy E f f i c i e n c y S t a n d a r d s 1. Energy e f f i c i e n c y s t a n d a r d s of the b u i l d e r s i n t e r v i e w e d r e v e a l e d a c l o s e s i m i l a r i t y i n each r e g i o n both c u r r e n t l y and h i s t o r i c a l l y a l t h o u g h s t a n d a r d s between the r e g i o n s d i f f e r e d c o n s i d e r a b l y . 2. There has been a s i g n i f i c a n t i n c r e a s e i n b u i l d e r s ' i n s u l a t i o n and o t h e r energy e f f i c i e n c y s t a n d a r d s over the p a s t two y e a r s i n b o t h Regina and Vancouver. 3. Two l a r g e and one medium-sized b u i l d e r (2 i n R e g i n a , 1 i n Vancouver) were found t o have energy e f f i c i e n c y s t a n d a r d s s l i g h t l y above those p r e v a l e n t among the remainder of the b u i l d e r s i n t e r v i e w e d . These b u i l d e r s a r e c u r r e n t l y m a r k e t i n g t h e i r homes on the b a s i s of t h e i r energy e f f i c i e n c y . 4. C u r r e n t l e v e l s of energy e f f i c i e n c y s t a n d a r d s of both Regina and Vancouver b u i l d e r s a re much g r e a t e r than the s t a n d a r d s r e q u i r e d by p r o v i n c i a l b u i l d i n g codes, but a r e g e n e r a l l y below the recommended s t a n d a r d s of CMHC ( B u i l d e r s B u l l e t i n No. 332, J u l y 1981) i n s e v e r a l key a r e a s , most n o t a b l y basement i n s u l a t i o n and a i r - v a p o u r b a r r i e r i n s t a l l a t i o n p r a c t i s e s . 5. B.C. has not i n c o r p o r a t e d energy e f f i c i e n c y s t a n d a r d s w i t h i n i t s b u i l d i n g code and Regina has not e x e r c i s e d i t s powers t o enact energy e f f i c i e n c y s t a n d a r d s . T h e r e f o r e i t i s s t i l l p o s s i b l e t o b u i l d a home i n e i t h e r Vancouver or Regina t h a t i n c o r p o r a t e s no i n s u l a t i o n . B. The B u i l d e r s ' Energy Awareness 1. There was a d i s c e r n i b l e l a c k of i n t e r e s t shown by b u i l d e r s i n the energy i s s u e , and t h e i r p r e v a i l i n g a t t i t u d e toward Canada's • energy problem p a r a l l e l e d t h a t p r e v a l e n t among the g e n e r a l p u b l i c - - ! . e . t h e r e i s no problem; Canada has abundant energy r e s o u r c e s . 2. D e s p i t e the r e c e n t i n c r e a s e s i n energy e f f i c i e n c y s t a n d a r d s by b u i l d e r s , t h e i r awareness of energy use i n t h e i r own homes has remained g e n e r a l l y low, a l t h o u g h the awareness of Regina b u i l d e r s was h i g h e r owing t o a g r e a t e r consumer energy c o n s c i o u s n e s s and a h i s t o r i c a l l y g r e a t e r a t t e n t i o n g i v e n t o i n s u l a t i o n s t a n d a r d s because of c l i m a t e . 3. None of the 16 mass-market b u i l d e r s i n t e r v i e w e d knew the amount of energy consumed i n t h e i r homes f o r space h e a t i n g . 4. Housing b u i l d e r s i n g e n e r a l a r e not y e t g e n u i n e l y concerned w i t h the energy e f f i c i e n c y of the houses they c o n s t r u c t and t h e r e i s s u b s t a n t i a l scope and a need f o r improvement i n b u i l d e r s ' awareness of energy consumption and the c o s t -e f f e c t i v e n e s s of v a r i o u s t e c h n i q u e s . 1 32 C. Reasons f o r Recent Improvements i n Energy E f f i c i e n c y 1. C u r r e n t energy e f f i c i e n c y l e v e l s r e s u l t from a c o m b i n a t i o n of i n f l u e n c e s i n c l u d i n g recommended CMHC s t a n d a r d s , consumer demand i n i t i a t e d by g r e a t e r energy awareness, and the c o m p e t i t i v e n a t u r e of h o u s i n g markets. 2. S t a n d a r d s advanced by CMHC, a l t h o u g h not b i n d i n g or e n f o r c e a b l e on non-NHA f i n a n c e d h o u s i n g , have h i s t o r i c a l l y p r o v i d e d g u i d e l i n e s which have been f o l l o w e d , by the ho u s i n g i n d u s t r y ; hence i n c r e a s e s i n CMHC energy e f f i c i e n c y s t a n d a r d s have o f t e n prompted b u i l d e r s t o upgrade t h e i r s t a n d a r d s . Over the p a s t f i v e y e a r s , CMHC p a r t i c i p a t i o n i n the market has de c r e a s e d , hence d i m i n i s h i n g the i n f l u e n c e of CMHC s t a n d a r d s on the i n d u s t r y . 3. I n Regina the most c r i t i c a l m o t i v a t i n g f a c t o r s b e h i n d r e c e n t increments i n energy e f f i c i e n c y s t a n d a r d s has been consumer demand,, the c o m p e t i t i v e n a t u r e of the ho u s i n g market, and r e c e n t p r o v i n c i a l government i n i t i a t i v e s (eg. Saskatchewan home Energy Loan Program, Saskatoon Energy Showcase). 4. In Vancouver, the f a c t o r s were CMHC g u i d e l i n e s , B.C. Hydro's recommended energy e f f i c i e n c y , s t a n d a r d s , and the c o m p e t i t i v e n e s s of the h o u s i n g market. 5. Requests by consumer, f o r i n f o r m a t i o n on e f f i c i e n c y s t a n d a r d s or d e v i c e s , a re im p o r t a n t m o t i v a t i n g f a c t o r s i n a b u i l d e r ' s d e c i s i o n t o o f f e r new f e a t u r e s . The o r i g i n s of such r e q u e s t s c o u l d be i n f o r m a t i o n s u p p l i e d by another b u i l d e r or government i n f o r m a t i o n programs. 6. S e v e r a l l a r g e r b u i l d e r s o f t e n form a l e a d i n g edge i n adv a n c i n g energy e f f i c i e n c y s t a n d a r d s which a re then c a u t i o u s l y f o l l o w e d by the r e m a i n i n g b u i l d e r s i n the a r e a . T h i s has had the b e n e f i c i a l e f f e c t s of i n c r e a s i n g energy awareness among the home b u y i n g p u b l i c and s i m u l t a n e o u s l y p r e s s i n g competing f i r m s t o i n c r e a s e t h e i r s t a n d a r d s . 7. S p e c i a l t y b u i l d e r s c o n s t r u c t i n g o n l y "super" energy e f f i c i e n t homes are becoming more common and a r e a i d i n g t e c h n o l o g i c a l advancement and energy awareness on the p a r t of consumers and o t h e r b u i l d e r s . 8. C o s t - e f f e c t i v e n e s s of energy e f f i c i e n c y measures was a minor c o n s i d e r a t i o n f o r the b u i l d e r s i n d e t e r m i n i n g the f e a t u r e s t o be o f f e r e d . 9. I n i t i a t i v e s by HUDAC t o i n c r e a s e the energy e f f i c i e n c y s t a n d a r d s of t h e i r member b u i l d e r s i s p r i m a r i l y a m a r k e t i n g s t r a t e g y . 10. D e m o n s t r a t i o n - p r o j e c t s funded j o i n t l y by f e d e r a l and p r o v i n c i a l governments have h e l p e d i n c r e a s e the energy awareness of h o u s i n g consumers, e s p e c i a l l y i n Saskatchewan, and have i n c r e a s e d consumer demand f o r energy e f f i c i e n t f e a t u r e s . 1 3 3 1 1 . The p a t t e r n of i n c r e a s i n g energy e f f i c i e n c y s t a n d a r d s over the p a s t f i v e y e a r s . h a s r o u g h l y p a r a l l e l e d i n c r e a s i n g h e a t i n g f u e l p r i c e s and m i r r o r e d an i n c r e a s i n g energy awareness w i t h i n s o c i e t y . . D. The A t t i t u d i n a l , I n s t i t u t i o n a l and I n f o r m a t i o n B a r r i e r s t o  Energy E f f i c i e n t H o u s i n g 6 1 1 . Housing consumers are aware of a need f o r g r e a t e r energy e f f i c i e n c y , but are g e n e r a l l y u ninformed about the t e c h n i q u e s , t h e i r e f f e c t i v e n e s s , and t h e economics of energy c o n s e r v a t i o n . 2. The consumer's u n d e r s t a n d i n g of a f e a t u r e ' s o p e r a t i o n and i t s v i s i b i l i t y governed i t s market a c c e p t a n c e . 3 . There was l e s s energy awareness e x h i b i t e d by consumers i n the custom home market; t h i s f i n d i n g i s c o n t r a r y t o the common b e l i e f t h a t second time buyers are more aware and concerned w i t h o p e r a t i n g e x p e n s e s . 6 2 4. Government at both p r o v i n c i a l and f e d e r a l l e v e l s has been slow t o a c t on e i t h e r r e g u l a t i n g or o f f e r i n g i n c e n t i v e s t o i n c r e a s e energy e f f i c i e n c y , l e a v i n g t h e i r p u b l i c s t a tements r e q u e s t i n g g r e a t e r energy e f f i c i e n c y unsupported by e f f e c t i v e , c o o r d i n a t e d a c t i o n s . 5 . B u i l d i n g codes are not c u r r e n t l y p r o v i n g a c o n s t r a i n t t o energy e f f i c i e n c y improvements i n mass-market h o u s i n g . However they w i l l p l a c e i n c r e a s i n g r e s t r i c t i o n s on p a s s i v e s o l a r d e s i g n and o t h e r i n n o v a t i o n s i f they c o n t i n u e u n a l t e r e d . 6. Major changes i n t r a d i t i o n a l home d e s i g n are c o n s t r a i n e d by z o n i n g r e g u l a t i o n s which s p e c i f y minimum s i d e , f r o n t and r e a r y a r d s . Such z o n i n g c o n t r o l s w i l l become a s e r i o u s b a r r i e r t o i n n o v a t i v e h o u s i n g which aims t o i n c r e a s e energy e f f i c i e n c y by r e s p o n d i n g t o i t s s i t e and s i t u a t i o n i n n o n t r a d i t i o n a l ways. 7. A e s t h e t i c s i s an a l l i m p o r t a n t c o n s i d e r a t i o n f o r b u i l d e r s and hence energy c o n s i d e r a t i o n s have not y e t i n f l u e n c e d the a e s t h e t i c f e a t u r e s or d e s i g n of mass-market h o u s i n g . 8 . C u r r e n t i n i t i a t i v e s t o i n c r e a s e t h e energy e f f i c i e n c y of new h o u s i n g have been c o n f i n e d t o c o n s t r u c t i o n m o d i f i c a t i o n . F u t u r e improvements w i l l i n c r e a s i n g l y come from e x t e r i o r and i n t e r i o r d e s i g n m o d i f i c a t i o n s which c o u l d encounter some market 6 1 I t s h o u l d be noted t h a t , the c o n c l u s i o n s s t a t e d here have been g a i n e d from t h i s study a l o n e . For a more complete d e s c r i p t i o n of t h e s e b a r r i e r s p l e a s e r e f e r t o the a p p r o p r i a t e c h a p t e r . 6 2 T h i s c o n c l u s i o n can o n l y be s u b s t a n t i a t e d f o r Vancouver, an a r e a w i t h a much lower l e v e l of energy awareness than was found i n R e g i n a . 134 r e s i s t a n c e from buyers c o n d i t i o n e d t o p r e f e r the. t r a d i t i o n a l s t y l e of home. E. C o s t s and Economic B a r r i e r s t o I n c r e a s e d Energy E f f i c i e n c y 1. I g n o r i n g the impacts of a t t i t u d i n a l and i n s t i t u t i o n a l b a r r i e r s t o i n c r e a s i n g energy e f f i c i e n c y , p r e s e n t s t a n d a r d s and p o t e n t i a l n a t i o n a l energy s a v i n g s a r e dependent on the c o s t -e f f e c t i v e n e s s of energy c o n s e r v a t i o n f o r the i n d i v i d u a l consumer. 2. C u r r e n t energy e f f i c i e n c y s t a n d a r d s p r e v a l e n t among Regina b u i l d e r s i n v o l v e a c a p i t a l c o s t i n c r e a s e of $1400 t o $1600 ( f o r a 1300 sq. f t . home) over a s i m i l a r home c o n s t r u c t e d t h r e e y e a r s ago. For Vancouver, the i n c r e a s e i s $600 t o 800, e x c l u s i v e of d o u b l e - g l a z i n g which was a l r e a d y common i n 1978. 3. Upgrading the t y p i c a l Regina home of 1978 t o the approximate s t a n d a r d s c u r r e n t l y employed by the Regina energy e f f i c i e n c y s p e c i a l t y b u i l d e r would r e q u i r e an a d d i t i o n a l $2500 t o $3000, ( e x c l u s i v e of the a i r - t o - a i r heat exchanger ( $ 1 5 0 0 ) ) . 4. C u r r e n t i n i t i a t i v e s t o i n c r e a s e energy e f f i c i e n c y i n v o l v e n e g l i g i b l e c a p i t a l c o s t i n c r e a s e s , on the or d e r of 1 t o 3 p e r c e n t of t o t a l c o n s t r u c t i o n c o s t s . Such s m a l l i n c r e a s e s cannot be t r a c e d i n c u r r e n t v o l a t i l e h o u s i n g m arkets. Thus, the e v a l u a t i o n of energy e f f i c i e n c y measures on the r e s a l e market has not been c l e a r l y e s t a b l i s h e d l e a v i n g new home p u r c h a s e r s dependent on c a p i t a l c o s t r e c o v e r y t h r o u g h energy s a v i n g s . 5. When the i n c r e m e n t a l c o s t of energy c o n s e r v i n g f e a t u r e s i n c r e a s e s , and the v a l u e of energy e f f i c i e n c y i s more w i d e l y a c c e p t e d by h o u s i n g consumers and r e f l e c t e d i n the h o u s i n g market, a major b a r r i e r t o investment i n energy c o n s e r v i n g f e a t u r e s by new home p u r c h a s e r s w i l l be removed. 6. The payback p e r i o d s of the c o n v e n t i o n a l t e c h n i q u e s employed by b u i l d e r s i n both Regina and Vancouver over the p a s t 3 y e a r s a r e g e n e r a l l y between f i v e and t e n y e a r s under n a t u r a l gas p r i c e s e x i s t i n g on September 1, 1980. I n c r e a s e s of a p p r o x i m a t e l y 50 p e r c e n t over the p a s t year and p r o j e c t e d f u t u r e i n c r e a s e s i n n a t u r a l gas p r i c e s w i l l improve the payback f o r new home p u r c h a s e r s . 7. Recent developments on the n a t i o n a l energy scene i n d i c a t e s u b s t a n t i a l l y h i g h e r f u t u r e energy p r i c e s e m p h a s i z i n g the n e c e s s i t y of d i s r e g a r d i n g c o n s e r v a t i v e c o s t - e f f e c t i v e n e s s a n a l y s e s and r a i s i n g energy e f f i c i e n c y s t a n d a r d s t o a l e v e l r e f l e c t i n g h i g h e r energy p r i c e s . 8. F u t u r e i n c r e m e n t s i n energy e f f i c i e n c y w i l l r e q u i r e s i g n i f i c a n t l y g r e a t e r c a p i t a l e x p e n d i t u r e s (6-8 p e r c e n t above c u r r e n t c o n s t r u c t i o n c o s t s ) and w i l l t h e r e f o r e e x c l u d e an i n c r e a s i n g l y g r e a t e r p r o p o r t i o n of m a r g i n a l f i r s t - t i m e buyers c u r r e n t l y e x p e r i e n c i n g a f f o r d a b i l i t y problems. These buyers 135 w i l l be f o r c e d t o purchase o l d e r , l e s s f u e l e f f i c i e n t homes, a c i r c u m s t a n c e t h a t t h i s group can l e a s t a f f o r d . F. T e c h n i c a l B a r r i e r s t o I n c r e a s i n g Energy E f f i c i e n c y 1. The energy e f f i c i e n c y i n c r e a s e s t h a t have o c c u r r e d so f a r have not r e q u i r e d s i g n i f i c a n t new c o n s t r u c t i o n t e c h n i q u e s ; f u t u r e i n c r e a s e s , i n i t i a l l y on the p r a i r i e s , w i l l r e q u i r e r e v i s e d c o n s t r u c t i o n p r o c e d u r e s u n f a m i l i a r t o the m a j o r i t y of b u i l d e r s and t r a d e s . The most immediate f o r s e e a b l e i n f o r m a t i o n gap w i l l be w i t h improved a i r - v a p o u r b a r r i e r i n s t a l l a t i o n p r a c t i c e s . T h i s w i l l c r e a t e a s h o r t - t e r m problem as m i s c o n c e p t i o n s a r e overcome and c o r r e c t i n s t a l l a t i o n p r a c t i s e s d i f f u s e through, the i n d u s t r y . 2. A d d i t i o n a l new c o n s t r u c t i o n t e c h n i q u e s w i l l be r e q u i r e d as a i r - t i g h t n e s s i n c r e a s e s n e c e s s i t a t e the i n t r o d u c t i o n of a m e c h a n i c a l v e n t i l a t i o n system, most p r o b a b l y the a i r - t o - a i r heat exchanger. These new t e c h n i q u e s w i l l r e q u i r e b u i l d e r e d u c a t i o n t o a v o i d the " t r i a l and e r r o r " approach t y p i c a l l y employed i n the h o u s i n g i n d u s t r y . 3. A p p r o x i m a t e l y h a l f of the b u i l d e r s i n t e r v i e w e d d i d not u n d e r s t a n d the concept of p a s s i v e s o l a r d e s i g n or the t e c h n i q u e s i n v o l v e d i n i t s a p p l i c a t i o n . T h i s t e c h n o l o g y must f i r s t overcome s e r i o u s knowledge b a r r i e r s as w e l l as s e v e r a l apparent m i s c o n c e p t i o n s b e f o r e i t can become w i d e l y adopted i n mass-market h o u s i n g . 4. S u b s t a n t i a l disagreement, was e n c o u n t e r e d between b u i l d e r s and b u i l d i n g r e s e a r c h e r s r e l a t i n g t o p o t e n t i a l c o n s t r u c t i o n problems of f e a t u r e s r e q u i r e d by the Saskatchewan Government's Home Energy Loan Program. The b u i l d e r s noted s e v e r a l s e r i o u s problems; the r e s e a r c h e r s d i s c o u n t e d them, m a i n t a i n i n g c o r r e c t i n s t a l l a t i o n p r a c t i s e s w i l l p r e v e n t any problems. G. Comparative Study A s p e c t s 1. The i n t e r v i e w s conducted d e t e c t e d a wide range i n b u i l d e r f a m i l i a r i t y w i t h energy c o n s e r v i n g m a t e r i a l s and c o n s t r u c t i o n t e c h n i q u e s . In g e n e r a l , l a r g e r and medium-sized b u i l d e r s were more aware than were s m a l l e r b u i l d e r s . 2. The s m a l l b u i l d e r s i n t e r v i e w e d and c o n t a c t e d by phone were g e n e r a l l y l e s s concerned w i t h energy use. T h e i r s t a n d a r d s d i d not e x h i b i t a r i s e e q u i v a l e n t t o l a r g e r b u i l d e r s over the p a s t f i v e y e a r s . T h i s a r o s e from one of two c i r c u m s t a n c e s : a) The s m a l l b u i l d e r h i s t o r i c a l l y i n c o r p o r a t e d h i g h e r i n s u l a t i o n s t a n d a r d s than t y p i c a l l a r g e r b u i l d e r s as a consequence of w i s h i n g t o c o n s t r u c t a " q u a l i t y " home, and hence d i d not see a need t o r a i s e t h e i r s t a n d a r d s f u r t h e r ( i . e . B u i l d e r 10) o r , b) the b u i l d e r i s unconcerned w i t h energy e f f i c i e n c y 1 36 and has not y e t been f o r c e d t o i n c r e a s e h i s s t a n d a r d s t h r o u g h consumer demand ( B u i l d e r 1 ) . 3. The s m a l l e r b u i l d e r s were l e s s aware of the n a t i o n a l energy p i c t u r e and were l e s s c o g n i z a n t of p r o b a b l e f u t u r e government a c t i o n . F u t u r e change i n the r a t e of i n n o v a t i o n r e l a t i n g energy c o n s e r v a t i o n improvement c o u l d a d v e r s e l y a f f e c t the s u c c e s s of the s m a l l b u i l d e r s . 4. Regina b u i l d e r s were n o t i c e a b l y more aware than were Vancouver b u i l d e r s of Canada's energy c o n t e x t , the need t o i n c r e a s e energy e f f i c i e n c y and the t e c h n i q u e s f o r d o i n g so. 5. Energy awareness among Regina consumers i s c o n s i d e r a b l y h i g h e r than t h a t i n Vancouver and has reached a l e v e l p rompting most b u i l d e r s t o a t l e a s t mention t h e i r energy e f f i c i e n c y s t a n d a r d s ; two b u i l d e r s used them i n a m a r k e t i n g s t r a t e g y . 6. Among the c o n v e n t i o n a l f e a t u r e s o f f e r e d , Regina consumers a c c e p t e d 2x6 w a l l c o n s t r u c t i o n and energy e f f i c i e n t f i r e p l a c e s most r e a d i l y w h i l e i n Vancouver d o u b l e - g l a z i n g and a d d i t i o n a l i n s u l a t i o n were, best r e c e i v e d by consumers. 7. , The s t a n d a r d s of each b u i l d e r d i d not v a r y s i g n i f i c a n t l y over t h e i r ; house p r i c e range, a l t h o u g h f e a t u r e s were f i r s t i n t r o d u c e d i n the most e x p e n s i v e homes. H. G e n e r a l F i n d i n g s — B u i l d e r I n t e r v i e w s I. B u i l d e r s a r e b a s i c a l l y s u s p i c i o u s and s k e p t i c a l of any government i n i t i a t i v e s t o i n c r e a s e energy e f f i c i e n c y ; do not s upport r e g u l a t i o n and b e l i e v e economic i n c e n t i v e s a r e u nnecessary t o a i d the a d o p t i o n of e n e r g y - e f f i c i e n t h o u s i n g . 2. There was s u b s t a n t i a l disagreement among b u i l d e r s over the most a p p r o p r i a t e method of e d u c a t i n g b u i l d e r s and t r a d e s , whether by l i t e r a t u r e , workshops or d e m o n s t r a t i o n p r o j e c t s . 3. The energy e f f i c i e n t b u i l d e r r e j e c t e d any of these methods as the most a p p r o p r i a t e , a d v o c a t i n g consumer demand as the most e f f e c t i v e measure f o r e n c o u r a g i n g b u i l d e r s t o i n c r e a s e t h e i r s t a n d a r d s . 

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