Safety and Buildings Division Rental Unit Energy Efficiency Council Meeting Summaries

Thursday, February 2, 2006, 9:30 a.m. to 1:30 p.m., Thompson Commerce Center, Room 3C, 201 W. Washington Ave., Madison, Wisconsin
Council member atendance: Rob Jens – Ex; Tom McKenna – P; Kent Schwankee – Ex
Commerce staff: Greg Jones,     Joe Hertel, Tom Kasper, Delores Kolosovsky, Diane Meredith

Welcome and Introductions
Joe Hertel, Program Manager for the Division of Safety and Buildings, opened the meeting with a round of introductions of staff and members.  Greg Jones, Administrator for the Division of Safety and Buildings, was introduced and participated in some of the meeting discussions. The agenda was approved as written and the progress report from the previous meeting was accepted as written

Division Updates
Joe Hertel explained the Division decided to hold the processing of the previous public hearing rule package that was discussed with this group in 2004 due to the review of the Rental Unit Energy Efficiency program under the Governor’s Budget Bill last year.  In July of last summer, it was decided to maintain this program but reduce the number of staff in the program.  The Division decided to repeal and recreate the entire chapter of Comm 67 to reorganize the chapter similar to other Division Administrative codes and to improve the clarity of the requirements.  Joe explained the major rule changes discussed at the previous meeting are maintained in draft and the majority of the rule changes under the new draft are more editorial in nature.

Discussion and Identification of Concerns with Comm 67
The preliminary public hearing draft for Comm 67 was reviewed and the following major comments and decisions were made:

Comm 67.02 Scope and Application
The group discussed that recently many home owners are purchasing another home to either remodel it for their own use or to sell it again to a new owner when the work is finished.  Often the time to complete the remodeling work exceeds the one-year limit as used in the definition of “owner-occupied.”  It was felt the wording under Comm 67.02 (1) would not permit this due to the use of the terms “owner-occupied” and it was also discussed that by using the term “rental unit” that an owner may be able to apply the exclusions under the statutory definition of “rental unit.”  It was decided that if an owner purchases an additional house to remodel it and does not live in the house while the work is being done, the dwelling unit would still be considered “owner-occupied.”  However, to improve the requirements for general application, it was also decided to change the term “rental units” under Comm67.02 (1) to “dwelling units.”

Comm 67.03 and 67.04 (21) relating to transfer of ownership
It was noted the definition of “transfer” should be modified to include some types of transfers that are included under s. 77.25, Stats.  Staff will study where these additions should be included in the draft.
It was also suggested that an informational note be included under the definition of “transfer” stating that chapters 851 to879, Stats. relates to probate.

Comm 67.06 Cost payback exemption
At the last meeting, it was discussed the cost payback requirements could be eliminated because the 5 year reinspection was eliminated from the statutes.  However, Joe Hertel explained the cost payback exemption requirements can be eliminated because the energy efficiency measures required under these rules already provide for a 5-year cost payback.
Comm 67.06 Issuance of Certificates, Waivers and Stipulations
It was suggested the rules include a requirement stating the certificate of compliance is valid for the life of the building, and that department agents have 15 business days to file a waiver with the Department.

Comm 67.05 (2) Inspections
The group discussed that the fees the inspectors are permitted to charge should be changed.  It was felt with the increase in gasoline costs the inspectors should be permitted to charge more to cover their expenses.  It appears that Comm 2, Fee Code, would need to be modified to permit this and staff will research when the next update of the rules under Comm 2 will take place.

Work Assignments and Timeline
Staff will make the changes discussed at the meeting and share with the Council members for their review and comments.  After any comments are received, the final public hearing draft will be prepared and a public hearing will be scheduled for sometime in the spring.
Any questions on the draft should be directed to Joe Hertel at (608) 266-5649 or email at jhertel@commerce.state.wi.us.

Tuesday, May 18, 2004, 9:30 a.m. - 1 p.m., Thompson Commerce Center, Room 3C, 201 W. Washington Ave., Madison, Wisconsin

Council Member Attendence
Rob Jens P
Tom McKenna P
Kent Schwankee P

Visitors
John Rasmusson, Inspection

Commerce Staff
Joe Hertel
Tom Kasper
Dan Salopek
Diane Meredith

Introductions and explanation of project
Joe Hertel, Program Manager for the Division of Safety and Buildings, opened the meeting with a round of introductions of staff and members and by explaining the scope of this council's work. Joe explained that under section 101.122, Stats., the Department is required to review chapter Comm 67 once every five years. The last revision of this chapter occurred in 1999. Joe noted there is no current legislation that imposes any changes to the current statutes so the code should be reviewed to improve or clarify existing requirements and to look at new, if any, energy conservation measures for application. A new policy will also be examined that would permit the satisfaction of existing stipulations to meet the current requirements in lieu of the requirements in effect when the stipulation was issued.

Diane Meredith reviewed the Advisory Council Manual including the Department of Safety and Professional Services organization and mission statement, rule development process, member's responsibilities, and the election of a chairperson. At the end of the meeting the members nominated and unanimously appointed Tom McKenna as the chairperson.

Discussion and identification of concerns with Comm 67

The members were asked to identify any concerns that they may have with the current requirements in the code and the following concerns were identified:
- The elimination of the inspection of the furnaces, which could be a safety issue.
- The elimination of the 5-year requirement to renew the certificate of compliance.
- No requirement to perform follow-up inspections to ensure that compliance is maintained.
- Finding it difficult to get programs certified for continuing education requirements for credentialing.
- No process for notifying owners of expired stipulations.

Joe Hertel explained the elimination of the inspection of the furnace was based on pay-back in energy savings. He clarified the inspection and certification is now good for the life of the building, and indicated the intent of the program is to achieve a minimum level of energy savings, not safety, in these older buildings. Joe also advised the members that effective August 1, 2004, the continuing education requirements for rental unit energy efficiency will be eliminated.

The members discussed the number of expired stipulations that have not shown compliance with the code requirements. It was asked whether the Division could send out reminders to the owners and Tom Kasper explained the Division has dropped the 6-month reminder and will only send out orders to the owners after expiration of the stipulation or waiver and subsequent District Attorney referral.

Discussion of proposed code changes from staff

The members discussed the proposed draft of recommended changes received from Department staff and the following comments and decisions were made:

Comm 67.04 (4) definition of "authorize"
The definition has been modified to eliminate the reference to DILHR and change it to "department", which is defined as the Department of Safety and Professional Services. The members also suggested that this definition and the definition of "issue" be reviewed for consistency in application in the code, especially as used under Comm 67.08.

Comm 67.04 (25) definition of "owner-occupied"
The definition of owner-occupied is modified to clarify that the owner must occupy the dwelling unit exclusively as the primary or secondary residence within the first year immediately after the date of transfer of the dwelling unit. The definition has also been clarified that an owner may not claim more than 2 residences. This change is being proposed to recognize owners, who, as an example, own another dwelling used as a summer or winter residence. It was also noted that the cross-reference in the informational note under this section is incorrect. The correct cross-reference is Comm 67.08 (4).

Comm 67.04 (27) Clarification of what is included in the definition of "rental unit"
It was recommended to create a definition of "rented" to clarify the "rental unit" definition. However, the code under Comm 67.03 (1) has been modified to include the necessary clarifications for what would be considered a rental unit. Therefore, the definition of "rented" is not necessary.

Comm 67.04 (32) definition of "transfer"
The definition of "transfer" is being clarified so that it applies to an initial conveyance under the probate laws.

Comm 67.05 and Table 67.05-C Insulation of ducts and pipes
The requirement to insulate both the heating supply and return pipes and ducts in vented attic spaces was added to cover situations where the attic areas in older homes are renovated into habitable spaces. It was also suggested to modify the insulation requirements for domestic water pipes to clarify that the insulation requirements apply only to hot and cold water supply pipes.

Comm 67.06 Cost payback exemption
The requirements under Comm 67.06 will be eliminated because the certificate of compliance is issued for the life of the building and these exemption requirements are no longer needed. Issuing the certificate of compliance for the life of the building was a statutory change during the last code change, and now owners must comply with the minimum energy conservation requirements. If the exemptions as specified under Comm 67.06 were applied, they would apply for the life of the building, which would defeat the purpose of the code requirements.

Comm 67.08 (2) (d) Notice of Noncompliance
The notice of noncompliance requirement has been changed to state that it is the inspector, not the Department, who will specify the energy conservation measures that are necessary to bring the dwelling unit into compliance with the inspection evaluation.

Comm 67.08 (4) Stipulation
The members felt the proposed language for Comm 67.08 (4) (d) 3. relating to the expiration of a stipulation or waiver needs to be clarified that the current owner must meet the stipulation requirements prior to transfer. The members also recommended the terms "authorize" and "issue" as used under the entire section of Comm 67.08 should be reviewed for consistency, especially for stipulations and certifications, which should be similar.

Work assignments and timeline

The members recommended that the proposed changes suggested at the meeting be sent to them for their review in lieu of another meeting. The proposed draft will include a rule analysis explaining the rule changes and will also include new rule development requirements. The Department is now required to compare the proposed rule drafts to existing and proposed federal regulations for similar requirements and must also compare these requirements to adjacent states for similar requirements. Staff will send out the proposed public hearing draft to the members for their review by early July.

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