Austin Approves Mandatory Energy Audits

Environment Texas praised the Austin City Council for approving an ordinance on Thursday to help improve the energy efficiency of buildings in the city.

“Once again, Austin is leading the way in clean energy solutions,” said Luke Metzger, Director of Environment Texas. “Arming consumers with information about the energy usage of buildings will help them make smart choices about energy efficiency investments. If successful, this program could save the city hundreds of millions of dollars and take a big bite out of global warming pollution.”

The ordinance requires all apartment complexes and commercial properties to undergo an energy audit and then share the results with current and prospective tenants or purchasers.The audit will evaluate the energy usage of the building and make recommendations for cost-effective efficiency improvements.The price of the audit will be capped at $300 and is expected to cost less than $200.

For most consumers, efficiency retrofits will remain voluntary. However, apartment complexes that are determined to use 50% more electricity than the average will be required to undergo mandatory energy efficiency upgrades. Older units will be eligible for enhanced rebates from Austin Energy.

In addition, all sellers of single-family homes will have to get an energy audit at the point of sale and share the results with the buyer. Again, the upgrades remain voluntary, but the ordinance sets out goals for participation, starting with 25% in the first year and and going up to 85% in the fourth year.

Environment Texas had advocated for a ‘mandatory backstop’ to require upgrades if targets weren’t met, but this was defeated due to an intense lobby and PR campaign by the Austin Board of Realtors. Still, with the passage of this ordinance, Austin becomes one of the few cities in America to require energy audits, a major step forward for efficiency. If participation target rates are met, Austin Energy estimates Austinites will save a net of $430 million over ten years in lower electric bills (after accounting for cost of upgrades), reduce electric demand by 225 MW, and reduce annual CO2 emissions by 365,000 metric tons. 

In the coming year, Environment Texas will monitor the success of the program. If targets are not met, the group will work to amend the ordinance to require mandatory upgrades.

“The challenges of our energy crisis are so large that it requires a collective effort to stave off the worst impacts of global warming,” said Metzger. “The good news is energy efficiency upgrades will more than pay for themslves, giving us a ‘two-fer’ for consumers and the environment.”