Letter sent to United States Senator

The Energy Policy Act of 2004 allowed home builders of new homes to deduct $2,000 per home from their taxable income if the homes were constructed as energy efficient. This energy efficient criteria was established by the EPA based upon the 2006 Mortgage Industry National Home Energy Rating Systems Standards published by RESNET, also known as energy efficient mortgages. Energy Efficient mortgages are virtually never used in today's market and were not much of a tool used by lenders. When contacted a Vice President of Wells Fargo could not remember the last time his company participated in energy efficient mortgages.

RESNET is a non-profit corporation established in Arkansas who has a monopoly on all inspections of Energy Star labeled homes in the United States and whose organization has a patent on the HERS Rating System or Home Energy Rating System wherein a HERS score of from 100 to 0 is obtainable. This scoring is done by a member of RESNET known as a Rater or Provider using a software program called a REM/RATE. The rater or provider inputs into the software various information in order to have the software calculate a HERS score as to the energy efficiency of the home being inspected. The process also involves the rater/provider making certain visual inspections, measuring square and cubic footage of the home being rated, and providing numerous subjective information in order to obtain a HERS score.

However, as in any subjective computer program, garbage in means garbage out, or in some cases garbage in and fraud out. One home received FOUR different HERS ratings from FOUR members of RESNET.

This is one reason the EPA has decided to go to a HERS Range instead of a single score. One home had thirteen errors that had been entered into the software fraudulently in order to achieve a HERS score of 63, when in reality a score of 76 or 78 was accurate.

RESNET's own web site posts the Annual Report of 2007 it states the following: Staff also determined that there was enough evidence of non-compliance with the standards during on-site visits to warrant a more rigorous approach to monitoring.

In conclusion, as a tax payer I seriously question the validity of any tax credit based upon the subjective analysis of a program that appears to be seriously flawed and prone to outright fraud and deception. Tax credits for new windows is something that can be seen. A subjective analysis of how well a home is supposedly well insulated can be manipulated and fraud can become a factor. As a tax payer I would submit that thousands upon thousands of homes have received fraudulent tax credits based upon the Energy Star program and it's subjective approach.

Regards,

Bruce Wingfield