Climate Change – The Home Building Industry’s Perspective

1. Climate Change – The Home Building Industry’s Perspective Duane Desiderio Staff Vice President, Legal Affairs National Association of Home Builders January 31, 2008

2. Federal Perspective • In the Courts… • Massachusetts v. EPA • In the Executive Branch… • EPA denial of California’s Request to Regulate GHG Emissions from Motor Vehicles • Arizona adopted standard Sept. 2006 • EPA to establish mandatory GHG reporting by 2009 (Congressional directive) • In Congress… • HR 6, Energy Independence & Security Act • Signed into law Dec. 19, 2007 • S 2191, America’s Climate Security Act • Passed Senate Committee Dec. 5, 2007

3. States with GHG Emission Reduction Targets 2000 levels by 2020 Pew Center on Global Climate Change

4. Regional Initiatives • Arizona • Western Climate Initiative • Western Governors Association Pew Center on Global Climate Change, www.pewclimate.org

5. Private Initiatives • Chicago Climate Exchange • http://www.chicagoclimateexchange.com/ • terra pass • http://www.terrapass.com • Carbonfund • http://www.carbonfund.org

6. Green Indulgences Chicago Climate Exchange Announces Results of Auction Conducted at Request of the United States House of Representatives as part of its “Greening the Capitol Initiative” (Chicago – November 5, 2007) Chicago Climate Exchange® (CCX®), which launched its greenhouse gas trading operations in 2003, today announced the results of its auction of Carbon Financial Instrument (CFI) contracts conducted on behalf of the United States House of Representatives at its request. Value of U.S. House’s Carbon Offsets Is Murky Some Question Effectiveness of $89,000 Purchase to Balance Out Greenhouse Gas Emissions—Washington D.C., January 28, 2008

7. Lawsuits Filed in Federal Court VT • Clean Air Act • Envt’l Review • Nuisance • Negligence RI CT DC 7

8. Environmental Review • NEPA and “state NEPAs” • Envt’l Review Litigation • San Bernardino County • California Environmental Quality Act (CEQA) • Center for Biological Diversity v. NHTSA • National Environmental Policy Act (NEPA) 8

9. Measuring & Modeling GHG Emissions • Municipalities requiring builders to determine GHG emissions for their projects • Mass.: Envt’l Review • King County, Wash.: Environmental Review • Cal. AG: Consent Decree • How is this done? • We don’t know! • Factors to consider • Causation • Proportionality • Builder vs. Owner • Old vs. New Housing

10. What should be measured? Commercial 7% Residential 6% Agriculture 7% Electricity Generation 32% Industry 20% Transportation 28% 6 Sectors 5 Sectors

11. What should be measured? • CO2 from Residential • ~35% Direct Combustion • ~65% Combustion for Electricity • Energy Consumption • 81.6% from Pre-1991 Homes • 2.52% from 1991-2001 Homes

12. Homebuilders CO2 Responsibility? 30% Heating 11% Air Conditioning 12% Water Heating 12% Lighting Land Prep: Remove CO2 Sink VMTs Construction: Equipment & Electricity Builder Fixtures: HVAC Some Lighting Builder-supplied: Refrigerator Washer/Dryer Dishwasher Occupant Supplied: TV; DVD Lamps Hair Dryer, etc. Personal Property Real Property 21% Remainder: Appliances, Electronics, Etc. 2% Cooking 7% Refrigeration 4.5% Washer/Dryer .5% Dishwasher

13. Green Building • What is it? • Not just climate change • Concerns • Over regulation • Liability • Opportunities: NAHB’s Efforts • NAHB Green Building Conference (since 1999) • Model Green Home Building Guidelines (2005) • In Development– First Ever NAHB/ANSI Green Building Standard

14. Climate Change – The Home Building Industry’s Perspective Duane Desiderio Staff Vice President, Legal Affairs National Association of Home Builders January 31, 2008