EPA
      WaterSense
      Response to Public Comments
       Received on December 2008
Draft WaterSense® New Home Certification System
            June 25, 2009

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                                                 Response to Comments on the Draft
                                          WaterSense New Home Certification System
This document provides WaterSense's responses to public comments received on the
December 18, 2008 Draft WaterSense New Homes Certification and Labeling System.
The actual comments can be viewed at
ttp://www.epa.gov/watersense/specs/homes_certification.htm.
                                                                  June 25, 2009

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                                                 Response to Comments on the Draft
    • '.  i ScilSC                           WaterSense New Home Certification System
Issue                                                                    Page
I.    General Comments	4
III.   Procedures and Requirements for Builder Partners	7
IV.   Procedures and Requirements for Water-Efficiency Home Inspectors	8
V.   Procedures and Requirements for Licensed Certification Providers	8
VI.   Procedures and Requirements for Program Administrators	9
VII.  Suspension and Withdrawal of the WaterSense Label from New Homes	9
                                                                   June 25, 2009

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                                                  Response to Comments on the Draft
 /../.i	, ScnSC                            WaterSense New Home Certification System
Relationship to Other Building Programs

   a.  One commenter asked if the draft proposal was a completely free-standing and
       self-contained certification system or whether there were opportunities for
       existing green building raters to inspect homes for WaterSense.

       Response: WaterSense has adopted a free-standing, self-contained new homes
       certification system. This stand-alone structure is important for those builders
       who may be interested only in addressing the water efficiency of their homes.
       EPA does not want to force builders to build and obtain certifications for other
       building programs as a pre-requisite for participating in the WaterSense program.
       However, the structure mirrors that  of other green building programs so that
       existing raters can easily participate in the WaterSense new home certification
       system. The availability of inspectors that are approved to conduct multiple
       inspections will reduce costs for builders and encourage their involvement in the
       WaterSense program.

   b.  One commenter suggested that WaterSense work with existing new homes
       programs that include water efficiency measures to encourage their participation.

       Response: WaterSense agrees with this recommendation and also plans to
       conduct outreach at green building workshops and various conferences that staff
       members from these programs are  likely to attend.

Sampling Protocol

   a.  Some commenters recommend that the certification system  include sampling
       requirements similar to those allowed by the ENERGY STAR program.

       Response: WaterSense agrees with this recommendation and has added a
       sampling protocol that licensed certification providers can choose to adopt that
       will allow a sample of constructed homes to be inspected. While the protocol is
       allowed by comparable green building programs and can decrease potential
       costs for production builders, it is important to allow licensed certification
       providers flexibility.

       Due to differences from  lot to lot that could impact the installation and operation
       of an irrigation system, WaterSense has decided to retain the requirement that
       each irrigation system be audited, regardless  of whether or not the associated
       home is directly inspected or certified through a sampling protocol.
                                                                    June 25, 2009

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                                                  Response to Comments on the Draft
                                            WaterSense New Home Certification System
Cost
   a.  Some commenters requested that WaterSense provide an estimated cost range
       for the certification of new homes.

       Response:  WaterSense has had conversations with potential program
       administrators and certification providers, including certification providers that
       have inspected and certified new homes under the WaterSense new homes pilot
       program, regarding the cost of the inspection and certification process for
       WaterSense. WaterSense estimates that the stand-alone cost to have a home
       certified for this program may range from approximately $250 to $400. The cost
       may be significantly reduced if the builder is participating in other green building
       programs and is utilizing the same inspectors for multiple certifications. EPA
       does not have an estimate for the cost of an irrigation system audit at this time.
       The installation of an irrigation system is optional and the pricing of the audit will
       be dictated  by the market.

   b.  One commenter suggested clarifying that the payment for a home's inspection
       not be contingent upon the home passing its inspection.

       Response:  The timing,  method,  and amount of the inspection payment is
       dictated by the market and set by the licensed certification provider. WaterSense
       has clarified that the  payment is for certification services, regardless of an
       inspection's outcome.

Certification Structure

   a.  One commenter was concerned  that the certification system contained too many
       roles,  creating an unnecessary overlap in hierarchy and increasing the costs
       associated with certification. The commenter suggested that EPA serve as the
       program administrator.

       Response:  WaterSense developed the proposed new home certification system
       after careful consideration of how other green building programs operate in order
       to ensure the consistency of requirements for certification providers operating
       programs for multiple green building programs. This increases the likelihood that
       existing certification providers will provide services for multiple programs, leading
       to reduced costs for builders.

       Furthermore, the structure of the certification system allows WaterSense to
       concentrate its resources on future specification development, outreach to
       industry professionals, and related marketing efforts. Also, the structure allows
       those groups with experience in the oversight of similar programs to continue to
       serve that role, maximizing the efficiency of the process.

   b.  One commenter requested that WaterSense remove the requirement for both the
       licensed certification  provider and the inspector to sign the certificate for labeled
       homes.

                                       5                            June 25, 2009

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                                                  Response to Comments on the Draft
                                           WaterSense New Home Certification System
       Response: WaterSense has decided to maintain the requirement for both parties
       to sign the certificate, as the licensed certification provider is the party authorized
       by EPA to issue the certificate and the inspector is the party responsible for
       verifying that the home meets EPA criteria. However, WaterSense has clarified
       that the label may be signed using an electronic signature or stamp to avoid
       delays in this process.

Certification System Layout

   a.  One commenter noted that the draft certification system was hard to follow and
       suggested addressing each party's role from the top down, from program
       administrator through builder partner.

       Response: WaterSense agrees with this comment and  has adjusted the order of
       the certification system accordingly.

WaterSense Web Site Clarification

   a.  One commenter noted that the certification system  made references to Web
       pages that did not exist yet on the WaterSense Web site.

       Response: EPA intends to update its Web site with the  release of the final
       specification, at which time all links will be made available and active. These links
       will direct users to the appropriate Web pages for more information on the
       certification system and other aspects of the new homes program.

Alternative Methods for Certification

   a.  One commenter suggested that EPA consider the NAHB Research Certification
       to the ANSI approved National Green Building Standard to be sufficient as an
       alternative method of compliance in attaining the WaterSense certification.

       Response: The WaterSense specification is comprehensive in terms of ensuring
       a home's water-efficiency. While there may be some overlap in the water
       efficiency requirements between the National Green Building Standard and the
       specification, NAHB's standard is a point-based system  that does not require
       compliance with all of the criteria designated in the  WaterSense specification.
       NAHB Green Building Verifiers may become trained and approved to perform
       inspections for WaterSense, which would allow builders to seek both
       certifications in a streamlined manner.

       WaterSense does not intend to compete with existing green building programs,
       but instead offers a designation that differentiates water-efficient new homes.
       Existing  programs can incorporate the WaterSense specification into their
       guidelines to ensure water efficiency similar to how ENERGY STAR'S new
       homes program has been adopted by other green building programs to ensure
       energy efficiency.

                                       6                            June 25, 2009

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                                                  Response to Comments on the Draft
                                           WaterSense New Home Certification System
WaterSense Label/Certificate
   a.  One commenter requested that WaterSense clarify what type of label will be
       used to certify the home.

       Response: The WaterSense label will be imprinted on a certificate provided to
       the builder partner upon certification.
Builder Partner Registry

   a.  One commenter asked if builder partners will be required to actually deliver a
       WaterSense labeled new home within a specific period of time.

       Response:  The builder partnership agreement will specify that the builder must
       have at least one home certified within one year of partnership and that the
       builder must continue to have at least one home certified in each following year.

   b.  One commenter suggested that WaterSense insert "if applicable" in reference to
       a builder partner's Web site.

       Response:  EPA agrees with this comment and has updated the certification
       system.

Builder Partner Marketing Tools

   a.  One commenter suggested that WaterSense provide guidance on how to refer to
       a home under construction as being a "candidate" for the WaterSense label.

       Response:  Builder  partners cannot refer to a home as WaterSense labeled
       before it has been certified. However, EPA will provide guidelines and sample
       materials for builder partners that discuss marketing of homes throughout the
       construction process.

Certification Options for Builder Partners

   a.  One commenter suggested that WaterSense clarify that builders can "opt-in/opt-
       out" on an individual house basis.

       Response: WaterSense will not require builders to label every home they build in
       order to  become partners. The aggregate number of homes submitted to each
       licensed certification provider for inspection that do and do not receive
       certification will be reported to WaterSense. This  procedure provides an incentive
       for builder partners to build the home to meet the specification requirements,
       correct noncomformities, and follow through with  the requirements for labeling,
                                                                    June 25, 2009

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,i-\     —«>-•                                         Response to Comments on the Draft
Watt!FSense                             WaterSense New Home Certification System
       while providing WaterSense with important feedback about the attainability of the
       certification.

IV.
Inspector Training

   a.  One commenter suggested that WaterSense provide training materials for home
       inspectors.

       Response:  WaterSense and/or the program administrator will train licensed
       certification providers to train their inspectors on the WaterSense new homes
       program and will provide applicable materials.

Inspector Conflicts of Interest

   a.  One commenter suggested that WaterSense provide examples of conflicts of
       interest and define which conflicts of interest would bar a potential inspector from
       participating in the WaterSense program.

       Response:  WaterSense has provided specific examples of conflicts of interest in
       the certification system.  However, WaterSense has decided to let the builder
       partner and/or the homeowner determine whether to use a particular inspector's
       services, given his/her conflict of interest. In addition, WaterSense clarified that
       the licensed certification provider  shall ensure that all disclosures are adequately
       addressed by its quality control procedures.

¥.                                                for
Criteria for Licensed Certification Providers

   a.  One commenter asked if utilities could serve as licensed certification providers.

       Response:  Any organization that can hire or contract with inspectors, train
       inspectors, designate quality assurance personnel, oversee the inspections, and
       maintain files on certified new homes can apply to serve as a licensed
       certification provider. This may include utilities.

   b.  One commenter was concerned with the burden that could be caused by not
       allowing an organization's quality assurance personnel to also be an inspector
       and thought this prohibition would decrease the number of organizations able to
       serve as licensed certification providers.
                                                                     June 25, 2009

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,i-\     —«>-•                                         Response to Comments on the Draft
Watt!FSense                             WaterSense New Home Certification System
       Response:  WaterSense agrees and has modified the certification system so that
       a quality assurance designee can conduct inspections, as long as they do not
       provide quality assurance functions, including oversight, of any of the inspections
       in which they are involved.

Licensed Certification Provider Training

   a.  One commenter requested that all trainings required for this program be
       designed by WaterSense to ensure consistency.

       Response:  WaterSense agrees and will prepare training and applicable
       materials for licensed certification providers.

VI.                                                for
Criteria for Program Administrators

   a.  Several commenters suggested that WaterSense remove the requirement for the
       program administrator to operate at a national level.

       Response:  EPA agrees and has modified the certification system accordingly.

   b.  One commenter expressed concern that the draft certification system appears to
       require program administrators to establish  new boards of directors/executive
       committees and revise their by-laws and governing policies in order to be eligible.

       Response:  WaterSense did not intend that  new organizations would need to be
       established or that significant changes would need to be made to their existing
       policies; rather the criteria for program administrators were developed with
       careful consideration of the operation of existing programs to ensure that these
       organizations would be able to meet the requirements with little to no effect on
       their current operation. WaterSense does want to ensure that the organizations
       are capable and competent to serve in the role of program administrator and are
       represented by individuals with knowledge of water efficiency. Also, WaterSense
       expects that organizations currently serving in a similar role for other green
       building programs will apply to serve this role for WaterSense, facilitating the
       ability of existing certification providers to certify homes for multiple programs.

VII.
Handling Complaints

   a.  One commenter suggested that the section on receipt of complaints was
       unnecessary and that misrepresentation or fraudulent activities surrounding the

                                       9                            June 25, 2009

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                                            Response to Comments on the Draft
                                     WaterSense New Home Certification System
WaterSense program were unlikely to occur. The commenter also asked for
examples of "fraudulent activity".

Response:  WaterSense determined that it is necessary to have a mechanism to
receive notification of label misuse, especially if the home buyer feels that the
home was not built to EPA's water-efficiency criteria as they expected. In
addition,  since WaterSense has modified the certification system to allow
sampling, the ability to report misrepresentation is even more important, as not
every home may be inspected.

WaterSense has clarified that fraudulent activity means "falsely claiming" that the
builder's  home(s) have been  certified in accordance with the specification and
this certification system.
                                10                           June 25, 2009

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