SENATE AMENDED
        PRIOR PRINTER'S NOS. 646, 918                 PRINTER'S NO. 2491

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 568 Session of 1985


        INTRODUCED BY ITKIN, J. L. WRIGHT, PETRARCA, GREENWOOD, SWEET,
           McVERRY, RICHARDSON, GEIST, KUKOVICH, PRATT, DAWIDA, CARN AND
           PISTELLA, MARCH 18, 1985

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED
           AS AMENDED, NOVEMBER 18, 1985

                                     AN ACT

     1  Amending the act of December 15, 1980 (P.L.1203, No.222),
     2     entitled "An act providing for the regulation for energy
     3     conservation purposes of the construction of buildings, the
     4     establishment of a Building Energy Conservation Committee and
     5     a Board on Variances, appeals and for penalties," changing
     6     and adding certain definitions; providing for notice to
     7     public utilities and utility providers; creating a special
     8     account; and further providing for application of energy
     9     standards, for certification, for notice to the department,
    10     for penalties and for variances.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 102(b) of the act of December 15, 1980
    14  (P.L.1203, No.222), known as the Building Energy Conservation
    15  Act, is amended to read:
    16  Section 102.  Legislative findings and declaration of purpose.
    17     * * *
    18     (b)  Purpose.--The purpose of this act is to grant to the
    19  [Commonwealth of Pennsylvania] Department of Labor and Industry
    20  and the Department of Community Affairs and direct [it] these


     1  departments to exercise specific authority in building
     2  construction to assure that such construction is performed using
     3  materials and techniques that will provide for energy
     4  conservation in the future operation and maintenance of said
     5  buildings.
     6     Section 2.  The definitions of "building" and "renovation" in
     7  section 103 of the act, amended July 10, 1981 (P.L.231, No.75),
     8  are amended and the section is amended by adding definitions to
     9  read:
    10  Section 103.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have, unless the context clearly indicates otherwise, the
    13  meanings given to them in this section:
    14     "Addition."  Any addition to an existing building. The
    15  provisions of this act shall only apply to the portion of the
    16  building which is being added and not to the entire building.
    17     "Building."  Any structure that provides facilities or
    18  shelter for public assembly or for educational, business,
    19  mercantile, institutional, warehouse or residential occupancy,
    20  or industrial use including, but not limited to, those portions
    21  of factory and industrial occupancy such as office space except
    22  for:
    23         (1)  Buildings and structures or portions thereof whose
    24     peak design rate of energy usage is less than one watt per
    25     square foot or [3.4] 3.5 BTU/hr per square foot of floor area
    26     for all purposes.
    27         (2)  Structures or those portions of structures used for
    28     housing equipment or machinery, or in which manufacturing or
    29     processing is done, where the operation of such equipment or
    30     machinery, or the manufacturing or processing procedures
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     1     employed require the use of or generate substantial heat
     2     producing energy or cooling within the structure. As used
     3     herein, the generation of substantial heat shall mean
     4     generation of more than 6 watts per square foot of floor
     5     area.
     6         (3)  Buildings which are neither heated nor cooled.
     7         (4)  Historic buildings.
     8         (5)  Buildings owned by the Federal Government.
     9         (6)  All units subject to the act of May 11, 1972
    10     (P.L.286, No.70), known as the "Industrialized Housing Act."
    11         (7)  All units subject to Title VI (Public Law 93-383),
    12     referred to as the Federal Mobile Home Construction and
    13     Safety Standards Act of 1974.
    14         (8)  Buildings which are constructed primarily of tree
    15     logs and only incidentally of other materials.
    16     * * *
    17     "Public utility."  A person or corporation in this
    18  Commonwealth owning or operating equipment or facilities for
    19  producing, generating, transmitting, distributing or furnishing
    20  electricity to or for the public for compensation for any
    21  purpose. The term includes such persons or corporations
    22  regulated by the Pennsylvania Public Utility Commission under
    23  Title 66 of the Pennsylvania Consolidated Statutes (relating to
    24  public utilities), but does not include any of the following:
    25         (1)  A generator or producer of electricity not engaged
    26     in distributing the electricity directly to the public for
    27     compensation.
    28         (2)  A person not otherwise a public utility who
    29     furnishes service only to himself.
    30         (3)  A bona fide cooperative association which furnishes
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     1     services only to its stockholders or members on a nonprofit
     2     basis.
     3     "Renovation."
     4         [(1)]  The rehabilitation of an existing building which
     5     requires more than 25% of the gross floor area or volume of
     6     the entire building to be rebuilt. Cosmetic work such as
     7     painting, wall covering, wall paneling, floor covering and
     8     suspended ceiling work shall not be included[; or
     9         (2)  any addition to an existing building]. The
    10     provisions of this act shall only apply to such portion of
    11     the building being renovated and not to the entire building.
    12     "Utility provider."  A municipal corporation in this
    13  Commonwealth owning or operating equipment or facilities for
    14  producing, generating, transmitting, distributing or furnishing
    15  electricity to or for the public within its corporate limits for
    16  compensation for any purpose, or an electric cooperative
    17  corporation created under the provisions of the act of June 21,
    18  1937 (P.L.1969, No.389), known as the "Electric Cooperative
    19  Corporation Act," and which provides retail electric service to
    20  its members on a nonprofit basis. The term does not include:
    21         (1)  A public utility regulated by the Pennsylvania
    22     Public Utility Commission under Title 66 of the Pennsylvania
    23     Consolidated Statutes (relating to public utilities).
    24         (2)  A generator, producer or manufacturer of
    25     electricity, gas or steam not engaged in distributing such
    26     electricity, gas or steam directly to the public for
    27     compensation.
    28         (3)  A person or corporation not otherwise a public
    29     utility who or which furnishes service only to himself or
    30     itself.
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     1         (4)  A generator, producer or manufacturer of gas or
     2     steam engaged in distributing such gas or steam to the public
     3     for compensation.
     4     Section 3.  Sections 302, 305, 306, 313(b) and 504 of the act
     5  are amended to read:
     6  Section 302.  Application of energy conservation standards.
     7     The energy conservation standards contained herein or as
     8  promulgated by the department with the approval of the Building
     9  Energy Conservation Committee shall apply to new buildings or to
    10  renovations on which actual construction and/or design has not
    11  commenced prior to their effective dates. Except for the
    12  authority of the Department of Community Affairs to promulgate
    13  rules or regulations for all units subject to the act of May 11,
    14  1972 (P.L.286, No.70), known as the "Industrialized Housing
    15  Act," provided such standards invoked are equal to or more
    16  stringent than those contained in this act, or as mandated by
    17  Federal law, no public utility as defined in 66 Pa.C.S. § 102
    18  (relating to definitions), department, board, agency or
    19  commission other than as provided herein, shall promulgate or
    20  adopt any mandatory building energy conservation standards,
    21  rules or regulations [which are inconsistent with] other than
    22  the standards contained in Chapter 2, Subchapters D through J or
    23  promulgated under Chapter 4 of this act except as mandated by
    24  Federal law.
    25  Section 305.  Certification.
    26     (a)  Applicability.--The provisions of this section shall
    27  apply to all buildings subject to this act except those
    28  classified as Use Group R-3.
    29     (b)  Compliance with act.--It shall be the duty of the
    30  licensed design professional retained in connection with the
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     1  design or construction of a building to certify that, in his
     2  professional opinion and in accordance with the accepted
     3  standards of his profession, the drawings, specifications and
     4  other data will achieve compliance with the provisions of this
     5  act[, except as provided in subsection (e)]. If no licensed
     6  design professional is retained in connection with the design or
     7  construction of a building, then this certification shall be
     8  made by the builder or the owner, if he is the builder. All such
     9  information required in this provision to be submitted to the
    10  department must be accompanied by a filing fee of $10. The
    11  filing fee may be subject to change by the Building Energy
    12  Conservation Committee upon the recommendation of the department
    13  to the Building Energy Conservation Committee, provided,
    14  however, that advance notice of such change has appeared in the
    15  Pennsylvania Bulletin. If the building is subject to the
    16  provisions of the act of April 27, 1927 (P.L.465, No.299),
    17  referred to as the Fire and Panic Act, the certification
    18  required hereunder shall be submitted on a form with the
    19  application for plan approval under the said Fire and Panic Act.
    20     (c)  Inspection.--Each licensed design professional retained
    21  by the owner or his designee, where any of such are retained
    22  during the construction of a building, shall make periodic
    23  inspections of the building progression to [insure] observe
    24  compliance with this act[, except as provided in subsection
    25  (e)]: Provided, That such inspection shall not be construed as a
    26  guarantee of satisfactory performance by others or as an
    27  assumption of financial liability for unknown defects or
    28  deficiencies in the work of others.
    29     (d)  Final certification.--Each [licensed design
    30  professional] builder retained by the owner or the owner, if he
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     1  is the builder, shall make a final certification of every
     2  completed building stating that[, in his professional opinion
     3  and in accordance with the accepted standards of his
     4  profession,] such building has been constructed in compliance
     5  with the approved drawings and specifications prepared by a
     6  licensed design professional or with the provisions of this
     7  act[, except as provided in subsection (e).
     8     (e)  Certification by builder.--If a licensed design
     9  professional is not retained in connection with the design and
    10  construction of a building, it shall be the responsibility of
    11  the builder or owner, if he is the builder, to perform the
    12  inspections and certification required by this section including
    13  payment of the filing fee.]
    14  Section 306.  Use Group R-3; notice; warranty.
    15     (a)  Notice to department.--Prior to construction of any
    16  building classified as Use Group R-3, the builder shall notify
    17  the department by [certified] first class mail of his intent to
    18  begin construction. Such notice shall include a filing fee of
    19  [$5] $10 and contain the name of the owner of the building and
    20  its location. The filing fee may be subject to change by the
    21  Building Energy Conservation Committee, upon the recommendation
    22  of the department to the Building Energy Conservation Committee,
    23  provided, however, that advance notice of such change has
    24  appeared in the Pennsylvania Bulletin.
    25     (a.1)  Special account.--All filing fees shall be deposited
    26  in a special account in the State Treasury to be known as the
    27  Building Energy Conservation Account. All fees collected for the
    28  purpose of this act shall be deposited in this account and the
    29  department shall draw from the account sufficient funds to cover
    30  the administrative and enforcement costs of operating the
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     1  program. The funds in the account are hereby appropriated to the
     2  department to carry out this act and shall not lapse at the end
     3  of any fiscal year. The balance of funds remaining in any
     4  existing Building Energy Conservation Account and held by the
     5  department on the effective date of this act is hereby
     6  transferred to the special Building Energy Conservation Account
     7  established pursuant to this subsection.
     8     (a.2)  Notice to public utilities and utility providers.--
     9         (1)  Prior to construction and except as provided in
    10     paragraph (5), the builder shall also provide a copy of the
    11     notice of intent to begin construction required by subsection
    12     (a) and certified as received by the department to all public
    13     utilities or utility providers which may be requested to
    14     furnish any electric service to or for buildings classified
    15     as Use Group R-3 which are constructed after the effective
    16     date of this subsection.
    17         (2)  All public utilities and utility providers shall
    18     rely on the certified copy of the required notice in
    19     furnishing, rendering or supplying any electric service to or
    20     for a building classified as Use Group R-3, except as
    21     provided in paragraph (5), and no public utility or utility
    22     provider shall conduct any audit, inspection or examination
    23     of the building for the purpose of determining compliance
    24     with this act. The furnishing, rendering or supplying of
    25     electric service by a public utility or utility provider to
    26     or for a building classified as Use Group R-3 shall not
    27     constitute a certification or determination by the public
    28     utility or utility provider that the building has been
    29     constructed in compliance with this act.
    30         (3)  Except as provided in paragraph (5), no public
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     1     utility or utility provider shall furnish any electric
     2     service to or for any building classified as Use Group R-3
     3     which is constructed after the effective date of this
     4     subsection unless it has first received the required copy of
     5     the notice of intent to begin construction which has been
     6     certified as received by the department.
     7         (4)  Each public utility or utility provider shall be
     8     required to retain the certified copy of the notice of intent
     9     to begin construction which is submitted to it for at least
    10     two years: PROVIDED, HOWEVER, THAT IF A UTILITY OR UTILITY     <--
    11     PROVIDER USES DATA PROCESSING EQUIPMENT TO RECORD AND
    12     MAINTAIN INFORMATION DERIVED FROM THE CERTIFIED COPY OF THE
    13     NOTICE OF INTENT TO BEGIN CONSTRUCTION, SUCH UTILITY OR
    14     UTILITY PROVIDER SHALL NOT BE REQUIRED TO RETAIN THE
    15     CERTIFIED COPY OF THE NOTICE OR A PHOTOCOPY THEREOF.
    16         (5)  (i)  Each public utility or utility provider shall
    17         be exempt from the provisions of paragraphs (1) through
    18         (4) when any electric service is requested for a building
    19         classified as Use Group R-3 which is located in a
    20         municipality which has elected to administer this act in
    21         accordance with sections 501 and 502 and which requires
    22         that a notice of intent to begin construction be filed
    23         with the municipality prior to or at the time that
    24         application is made for a building permit.
    25             (ii)  Each public utility or utility provider shall
    26         be exempt from the provisions of paragraphs (1) through
    27         (4) in situations where, in the public utility's or
    28         utility provider's judgment, strict compliance may
    29         jeopardize the public health or safety or impose an undue
    30         hardship. In such event, the public utility or utility
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     1         provider shall notify the department or the administering
     2         municipality, in writing, on forms prescribed by the
     3         department, of the exemption.
     4         (6)  If a builder fails to file the required notice with
     5     the department or the administering municipality within 30
     6     days of receiving an exemption under paragraph (5), the
     7     department or the administering municipality shall serve
     8     written notice on the builder that he is in violation of this
     9     act and subject to a penalty as provided for in subsection
    10     (d).
    11     (b)  Warranty.--At the time a contract for the construction
    12  of any building classified as Use Group R-3 is entered into, the
    13  builder shall warrant to the owner in writing that the building
    14  shall be constructed in accordance with the provisions of this
    15  act. Such warranty shall be a document separate from the
    16  contract and shall be in the following form:
    17     I,  (Builder)  , hereby warrant to  (Owner)  that the
    18  premises known as  (Description)
    19  shall be constructed in accordance with the provisions of the
    20  Act of December 15, 1980 (No.222), known as the "Building Energy
    21  Conservation Act."
    22  This law provides building standards to make your home energy
    23  efficient and also provides you with legal remedies if your home
    24  is not built according to the State standards. If you would like
    25  the State to do an energy audit of your home to determine if it
    26  conforms to State standards, you may call the Pennsylvania
    27  Department of Community Affairs at  (Telephone)  , and they will
    28  perform an inspection of your home for a fee of $35.
    29     Indicate if alternate building system or equipment design is
    30  being employed.
    19850H0568B2491                 - 10 -

     1     (c)  If the builder is also the owner of the building at the
     2  time of construction, he shall provide the warranty required by
     3  subsection (b) at the time of its initial sale to a new owner.
     4  Such warranty shall be in substantially the same form as
     5  provided in subsection (b).
     6     (d)  Failure to provide notice.--The Department of Community
     7  Affairs, after hearing, may assess a civil penalty payable to
     8  the Commonwealth of Pennsylvania not to exceed $100 for a first
     9  offense upon any builder who fails to give the notice required
    10  by subsection (a). In determining the amount of the civil
    11  penalty for a first offense, the [Department of Community
    12  Affairs] department shall consider the willfulness of the
    13  violation and the cost incurred by the department in discovering
    14  the violation. In the event a builder fails to give the notice
    15  required by subsection (a) on a second or subsequent occasion,
    16  the department shall assess upon the builder a civil penalty
    17  payable to the Commonwealth of Pennsylvania of $200.
    18     (e)  Failure to provide warranty.--Whenever a builder fails
    19  to provide the warranty required by subsection (b) or (c) such
    20  required warranty shall constitute an implied warranty and the
    21  owner's right to proceed under section 315(a) shall not be
    22  affected. If it is established by a preponderance of the
    23  evidence that the builder's failure to provide the warranty was
    24  willful, then damages in twice the amount provided in section
    25  315 may be awarded.
    26  Section 313.  Penalties.
    27     * * *
    28     (b)  Violations of act.--Any person who shall willfully or
    29  negligently violate any of the provisions of this act, or the
    30  rules and regulations or the orders for the enforcement of the
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     1  said provisions or rules and regulations issued by duly
     2  authorized officers of the department or who shall hinder, delay
     3  or interfere with any officer charged with the enforcement of
     4  this act in the performance of his duty, shall, upon conviction
     5  thereof, be punished by a fine of [not more than] $300 and
     6  costs. In the event of violation of more than one provision of
     7  this act, the violation of each provision shall be deemed a
     8  separate and distinct offense for the purposes of this section.
     9     * * *
    10  Section 504.  Variances.
    11     Any municipality electing to administer the provisions of
    12  this act under section 501 or 502 shall establish a Board on
    13  Variances to make determinations on request for variance from
    14  the energy conservation standards contained herein or as
    15  promulgated by the department with the approval of the Building
    16  Energy Conservation Committee, and is authorized exclusive
    17  jurisdiction to grant such variances, section 307(a)
    18  notwithstanding. A municipality, however, need not establish a
    19  Board on Variances if it has established a zoning hearing board
    20  pursuant to the act of July 31, 1968 (P.L.805, No.247), known as
    21  the "Pennsylvania Municipalities Planning Code." If the
    22  municipality does not establish a Board on Variances, the powers
    23  and duties established by this section shall be exercised by
    24  such zoning hearing board. A variance shall only be granted if
    25  the criteria of section 307(b) have been satisfied.
    26     Section 4.  This act shall take effect in 90 days.



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