VI. Policy Options

The mosaic of current policies affecting the building sector is complex

and dynamic, ranging from local, state, and regional initiatives to a portfolio

of federal policies and programs.

Numerous policy innovations could be added to this mix,

and many are being tried in test beds at the state and local levels.

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Various taxonomies have been used to describe policy instruments. Typically these distinguish

between regulations, financial incentives, information and education, management of government energy

use, and subsidies for R&D.

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Each of these is described below, first in general terms and then by focus 

ing on specific examples that are accompanied by a documented track record of producing cost effective

GHG reductions. These policies offer the potential to deliver significant GHG reductions from the building

sector, both in the short term and continuing well into the mid century.

A. Regulation 

Regulatory policies include building energy codes, appliance energy

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efficiency standards, clean energy portfolio standards, electricity interconnec 

tion standards for distributed generation equipment, and land use zoning to

promote smart growth.

Numerous regulatory innovations have been launched at the state and

local levels, including features of California's Title 24 standards, output based air quality permitting stan 

dards implemented by Texas, and the Texas energy efficiency portfolio standards that requires a percent 

age of the state's growth in electricity consumption be offset by energy efficiency improvements.

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The past and potential future role of state building codes and appliance and building equipment

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efficiency standards are particularly relevant to the discussion of accelerating the market penetration of

carbon friendly building technologies and practices. Both of these policies address a number of market

failures that exist in the building sector, including the problems introduced by decision making intermedi 

aries and the failure of energy prices to incorporate externalities. Evidence to date indicates that they

have been quite successful at promoting cost effective energy efficiency investments, and they appear to

offer considerable potential for generating future GHG reductions. 

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Towards a Climate Friendly  

Built Environment

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