Achieve Results in Delivering Utility Conservation Programs

1. Achieve Results in Delivering Utility Conservation Programs How BPI Works with State and Utility Conservation Programs to Deliver Results Larry Zarker Building Performance Institute

2. Energy is the Engine of Our Economic Prosperity

3. Why are we here today? • Financial Stability • Energy Security • Economic Growth • Environmental Protection

4. Confluence of Forces • Not investing in energy production or conservation • World markets are growing increasingly dependent on energy • Net effect is to drive up the cost of energy

5. Why Invest in Conservation? If we invested the equivalent of five months of what we are spending on the war in Iraq to weatherize each of the nation’s 120 million homes, we could eliminate the equivalent of all the oil we import from Saudi Arabia each year. These savings would continue to accumulate each year for the rest of the homes’ useful lives.

6. What is Energy Conservation’s Long Term Return on Investment?

7. What’s In It For Me? • Manage Peak Loads • Aggregate Carbon Emissions Savings • Strengthen Your Customers’ Economic Viability • Develop a Strong “Green Jobs” Contractor Infrastructure • Reduce Risk in Promoting Conservation

9. Need for Home Performance Contracting About a third of owner-occupied homes are now at least 45 years old and an additional third is between 25 and 45 years old meaning that a large majority of homes are in increasing need of remodeling and repair…AND upgrade of the home’s performance.

10. What is Home Performance? The systematic approach to improving the comfort, health, safety, energy efficiency and durability of your customers’ homes.

11. Drivers for Home Performance • Dust and Allergies • Comfort Issues (Drafts, Hot or Cold Rooms) • High Utility Bills • Hazardous Materials (Asbestos, etc.) • Moisture (wet basements, mold, etc.) • Climate Change (i.e., carbon footprint)

12. Typical home…full of systems… • Drainage system • Foundation system • Flooring system • Wall system • Ceiling system • Roof system • Heating system • Air conditioning system • Ventilation & IAQ systems • Moisture control systems • Distribution system • Exhaust systems • Plumbing systems in/out • Electric, Appliance & Lighting systems • Energy management system Key Question: Do you know where your fresh air comes from?

16. Return Air Furnace Filter Slot

18. Mold on Wall

19. Open Sump Pit

20. Corrosion on Hot Water Tank

21. Pipe Insulation

22. Uninsulated Ducts in Crawl Space

23. Impact of Rising Energy Prices • 15.6 million households could face utility shutoffs this winter because they can not pay their energy bill • Low-income households spend on average 15 percent of their budget on home energy costs, while other households only spend roughly 3.4 percent of their annual budget on such costs. Source: National Energy Assistance Directors Association

24. How Bad is the Economy? Letters from Vermonters to their Senator • “This winter, after keeping the heat just high enough to keep my pipes from bursting (the bedrooms are not heated), I began selling off my woodworking tools, snowblower (pennies on the dollar) and furniture that had been handed down in my family from the early 1800s, just to keep the heat on.” • “Today I am sad, broken and very discouraged.” • “My economic condition is very scary. I don’t live from paycheck to paycheck. I live from day to day. I am concerned as gas prices climb daily. I am just tired.” • “I don’t go to church many Sundays because the gasoline is too expensive to drive there.” • “By February, we ran out of wood and I burned my mother’s dining room furniture… Source: NY Times, 6/14/08, p. A27.

25. Bringing affordable comfort to the tens of millions of homes across America’s heartland.

26. ACI Legacy Home Demonstration Retrofit

27. One-third the Energy Use Magrann Findings: • Added insulation, improved windows and doors • Enhanced mechanical equipment (safer) • Significantly reduced air leakage • Efficient lighting and appliances • Appropriate spot ventilation • Mechanical ventilation for enhanced IAQ www.homerevival.typepad.com

28. Lessons Learned • National Demos are expensive and cannot be used for ROI analysis • Perspective of replenishing a community asset • Decline reversed • Anchor for the neighborhood • Increased value with HP systems • Long term ROI is positive compared to flip, cosmetic upgrade, and gut remodel

29. Key Elements of a Successful HPwES Program • Develop Contractor Infrastructure • Provide Building Science-based Skills Training • Provide Business Management and Sales and Marketing Training • Support Contractor Accreditation and Key Professional Certifications • Support Comprehensive Solutions • Comprehensive Home Assessments • Practical Solutions to Diagnosed Problems • Provide Independent, Third-Party QA

30. Key Question: What do you want to achieve? Real Performance • Energy savings for your customers • Better occupant comfort • Healthy, safe and more durable homes • Strong contractor base delivering real solutions for customers • All of the above

31. BPI’s Role in Home Performance Contracting • Support the growth of a Home Performance contracting industry • Support the transition of general and specialized trade contractors to home performance contracting • Maintain national standards overseeing home performance contracting • Provide a distinct brand value through an accreditation of home performance contractors coupled with independent, third party quality assurance • Provide a series of professional certifications for the home performance trades

32. Building a National Home Performance Training Infrastructure • BPI Services Primarily Delivered by National Network of Affiliates • 54 Affiliates in place; 2 with 4 locations • Negotiations with 15 new training affiliates • Rapid expansion in community college network • Total certifications active as of 12/31/07 is 2,567 in 35 states • Average of 1.8 certifications per person

34. BPI Certification Model BPI Certified Manufactured Housing Professional Field Exam for Manufactured Housing Written Exam for Manufactured Housing

35. BPI Marketing to Technicians

36. What is BPI Accreditation? A professional credential awarded by BPI to contracting companies who commit to offering comprehensive “whole house” home performance solutions for their customers.

37. BPI HPwES Contractor Model • First Do No Harm • Educate Customers on Whole-House • Offer Comprehensive Solutions • Training & Certification of Key Staff • Last Do No Harm • Independent, Third-Party Quality Assurance Program

40. Testing In Home Performance begins with a testing in procedure that is defined in the BPI Standards.

42. Tools of the Trade

43. Measurement and Verification • “Test Out” on every job to verify that the work achieves the performance expectations of you and your customer • Commit to having an independent, third-party quality assurance system verify the performance of your completed projects.

44. What’s In It For Me for Contractors? • Brand Recognition – Differentiation • Access to Resources • Educational • Business Training • Marketing Outreach • Independent, 3rd Party Quality Assurance • Feedback on Best Practices

45. What’s In It For Me for Technicians? • Develop a Marketable Skill Set • Have a Career Without Having to Leave Your Home Community • Be Part of the Green Collar Job Movement • Make a Difference in Your Community

46. Brave New World for Utilities • Effects of Decoupling on DSM Programs for Energy Conservation • Environmental Trading • Energy Efficiency Certificates/White Tags • Forward Capacity Trading

47. BPI As Part of Your Solution BPI stands ready to partner with you in your Home Performance Program.