I received an update on the recently passed House of Representatives H.R.2454, the American Clean Energy and Security Act. Also known as Cap & Trade. From the comments received last week, there were quite a few differing opinions and versions of what was actually passed. The National Association of Realtors is an excellent source of information on anything that can affect homeowner’s and the sale of real property.

Our local governmental affairs liaison provided me with a letter titled “Myths and Facts: Home Energy Labeling” The NAR letter addresses the major provision I wrote about last week which was its impact upon home sellers:

Claim: “The bill mandates energy audits and labeling before any home in America is sold”.

Fact: The bill does not create a federal energy audit or labeling requirement. As introduced the original bill would have required energy audits and labeling at the time of sale. However, Realtors succeeded in making many positive changes before the bill was passed. Many published reports are not based upon the version of the bill that was considered by the House. As approved the bill:

1. Does not create energy audit requirements for real property at time of sale.
2. Exempts existing homes, multifamily and commercial buildings from any federal energy labeling guidelines such as the existing Energy Star label program (section 204(m)), and
3. Leaves the decision entirely to state governments whether to pass a law to require labels, but expressly prohibits labeling during a transaction (Section 204 (h)).

The letter I received also states:

“NAR was directly involved in the development of the 308-page amendment. The energy labeling exemption for existing real property was included on page 45. The House bill is available to the public at the Library of Congress’ website: http://thomas.loc.gov/ . The real estate provisions are in Title 2 beginning on page 320.

My article last week quoted Congressman John Boehner’s website and the text of the speech he gave on the floor of the House of Representatives. He spoke about the housing provisions on page 7. However, it now appears that he was referring to the original bill that was drafted and not the amended bill that was ultimately passed by the House.

I emailed Congressman Boehner’s office this morning:

“According to the National Association of Realtors, H.R. 2454 does not contain a provision for an energy audit for residential home sellers.

This seems to contradict your speech on the floor of the House in which you stated it would now cost home sellers more money to sell their home due to the energy rating assessment in the democrat’s bill.

Could you please clarify this misunderstood and highly important provision”?

I will let you know if I receive a reply.

Tags: cap & trade energy audits, cap & trade energy rating assessment, Does cap & trade affect residential real estate, What does cap & trade mean to home sellers?