Overview of Home Performance with Energy STAR ( HPwES )

1. Overview of Home Performance with Energy STAR (HPwES) Leif Magnuson U.S. EPA Region IX Nevada Home Energy Retrofit Forum May 3, 2010

2. Outline • Why do a Home Energy Retrofit? • What is a Home Energy Retrofit? • What is Home Performance with Energy STAR and How Does it Work?

3. Why Home Retrofits? Cost per Ton of Carbon Abatement • “The Firepower of the Lowly Caulk Gun” Wall Street Journal • http://online.wsj.com/article/SB123629700922046051.html • Data from McKinsey: Pathways to a Low carbon Economy https://solutions.mckinsey.com/ClimateDesk/default.aspx

4. Data from McKinsey: Pathways to a Low carbon Economy https://solutions.mckinsey.com/ClimateDesk/default.aspx

5. Picture of a tour group entering the North Portal of Yucca Mountain View to the south of Yucca Mountain crest showing coring activities

6. Help homeowners maintain their most valuable asset Comfort Durability Indoor Air Quality Resale potential Hedge against future energy cost increases

7. Warm Air Leaks Out Cold Air Leaks In

8. What is a Whole House Energy Retrofit?

9. What is Home Performance with ENERGY STAR (HPwES) and How Does it Work? • Whole-house energy assessment • A network of qualified contractors to improve home performance • Independent review of contractors work

10. Whole-house energy inspection Energy specialist trained in building science Diagnose why performance is poor Completed before work Summary report Findings Recommendations Estimated costs and savings Comprehensive Energy Audit

11. Present Results and Proposal • These improvements will reduce your annual energy costs by 20%. • Hmmm? I can be more comfortable and save money.

12. Install Improvements

14. Post-work Performance Tests Test if ventilation meets standards Test that gas and oil burning appliances vent properly Test how much performance has improved Protects the consumer and contractor

15. HPwES Summary CertificateDocuments the improvements On the Web athttp://www.energystar.gov/ia/home_improvement/HPwES_Sponsor_Guide.pdf

16. HPwES Program Sponsors • Program sponsors monitor the quality of work performed by all participating contractors under a quality assurance plan. This plan will explain: • Reporting process • Job report review process • Customer feedback mechanism • On-site inspection protocols • Conflict resolution mechanism • Record keeping and tracking

17. Locally Sponsored Programs

18. Starting a Program Program sponsor Public utility, state or local government Organization designated by state to administer EE Long-term planning and funding A network of specially-trained contractors Incentives and financing Marketing plan to raise consumer awareness

19. Program Components Supply Demand QA/QC

20. Program Components Supply Identify, recruit, train, certify, mentor participants Create training standards / define qualifications for program participation Enable companies to differentiate themselves in the marketplace Give them tools and resources to be profitable

21. Program Components Demand Educate homeowners – about energy usage, the program, and the process Identify and overcome barriers to purchase Cost of initial audit Lower total costs via rebates Enable homeowners to finance cost-effective solutions

22. Program Components Quality Essential to program success Provide tools and training to do good work Software Forms, processes that work for the participants Trust but verify 100% file checks Minimum 5% field checks Higher field checks for certain participants/program elements deliver on the promise

23. Overview of HPwES Programs Home Performance with Energy Star (HPwES) programs have been established across the U.S. using various methods of program delivery. 1 Oregon budget is entire Home Energy Solutions Program for existing homes. http://www.energytrust.org/library/financials/2009_Budget.pdf

24. NYSERDA » Program Delivery NYSERDA is the largest and longest running HPwES Program, and the Energy $mart program was established first in 1998. A commitment to market transformation and statewide infrastructure and incentives building has driven program growth. Job Initiation Audit Improvements Quality Assurance • Homeowner directly contacts contractor • NYSERDA provides a user-friendly, clickable map of New York on the website, where customers can find a list of participating contractors, contact information and websites • Performed by participating contractor • Includes blower door test and combustion safety analysis • Cost – market price • Software – TREAT output is submitted to NYSERDA • All improvements are performed by participating contractor • Contractor performs test out with diagnostic equipment to verify energy savings and reports to NYSERDA • Reported to program implementer which serve as account managers & technical support • Performed by program implementer referred to as Quality Assurance Declaration of Completion • 600 performed in 2008, 15% of total jobs NYSERDA’s mission is to transform the contractor infrastructure in NY by facilitating training and certification. NYSERDA has created a state-wide suite of efficiency programs including HPwES, ENERGY STAR new homes, assisted HPwES, & renewable energy to drive consumer action.

25. NYSERDA » Program Elements Contractor Training and Requirements • BPI Building Analyst Certification • BPI Home Performance Contractor Accreditation • Completion of 24 jobs, or $180,000 in work, each year beginning in second year • Utilize local community college for training Incentives • Homeowners: • ENERGY STAR Financing: unsecured loan up to $20,000 (terms of 3, 5, 7 or 10 years); available to owner-occupied 1- or 2-family homes. (NYSERDA buys down the interest rate of the loan.) OR • 10% of the cost of eligible energy efficiency improvements, up to a maximum incentive of $3,000, • Contractors: • Reimbursements on training and equipment • Free TREAT software • Early buy-in cash incentive • 5% rebate for reporting audit • 2% bonus up to $400 for referrals to other BPI contractors • Cash awards ranging from $25 to $130 for every installed eligible ENERGY STAR product Marketing • TV, cable, and print advertising • Successful co-op advertising program • Regional and local specific marketing • Cross promotion with other NYSERDA programs, marketing of ENERGY STAR brand

26. Available Resources Online Marketing Toolkit Advertising templates Sales Book Template Bill Analysis Tool Business development resources Forms Guidance Graphics/videos Logo usage Promotional Banner Stands Promotional Video Web site Templates Contractor Business Development Guide

27. ENERGY STAR Logo – Brand Awareness More than 75% awareness, 80% influence and ~ 80% loyalty among purchasers (likeliness to recommend).

28. Conclusion - Home Performance with ENERGY STAR • Is more than a marketing campaign. • It is a program model for building a network of specially trained contractors that can fulfill the promise of whole-house improvements that reduce energy use by 20% to 30% and solve comfort and indoor air quality issues.

29. http://www.energystar.gov Leif Magnuson U.S. EPA Region IX Nevada Home Energy Retrofit Forum May 3, 2010

30. ARRA: Activity for Residential Retrofits

31. Recent Funding Opportunity • Retrofit Ramp-up Program • $390 million for states, cities, counties and tribes to launch large-scale, “whole-neighborhood” building retrofit programs • Seeking innovative financial and marketing strategies • Will serve as model programs for other communities Austin, Texas – $10 millionBoulder County, Colorado – $25 millionCamden, New Jersey – $5 millionChicago Metropolitan Agency for Planning – $25 millionGreater Cincinnati Energy Alliance, Ohio – $17 millionGreensboro, North Carolina – $5 millionIndianapolis, Indiana – $10 millionKansas City, Missouri – $20 millionLos Angeles County, California – $30 millionLowell, Massachusetts – $5 millionState of Maine – $30 millionState of Maryland – $20 millionState of Michigan – $30 million State of Missouri – $5 millionOmaha, Nebraska – $10 million State of New Hampshire – $10 millionNew York State Research and Development Authority – $40 millionPhiladelphia, Pennsylvania – $25 millionPhoenix, Arizona – $25 millionPortland, Oregon – $20 millionSan Antonio, Texas – $10 millionSeattle, Washington – $20 millionSoutheast Energy Efficiency Alliance – $20 millionToledo-Lucas County Port Authority, Ohio – $15 millionWisconsin Energy Conservation Corporation – $20 million

32. Current Funding Opportunity

33. Current Funding Opportunity (cont.) Area of Interest 1 – Strengthening Building Retrofit Markets that will assist states in developing approaches for retrofitting buildings in the nation’s residential and commercial sectors. Area of Interest 2 – Stimulating Energy Efficiency Action that will assist states in generating the necessary policy and program frameworks to support investment in cost-effective energy efficiency for the long-term. For Area of Interest 1 - DOE is seeking applications for the development of programs and strategies to retrofit residential and/or commercial properties in markets with little or no retrofit activity and/or to increase the market penetration of existing whole-building retrofits. For Area of Interest 2 - DOE is seeking applications from states and groups of states to achieve an annual minimum target electricity savings of 1 percent through energy efficiency Area of Interest 1: 10 awards anticipated nationwide Area of Interest 2: 8 awards anticipated nationwide Area of Interest 1: $2 Million - $5 Million per state (no single state will be awarded more than $5 million… Area of Interest 2: $250,000 - $700,000 (no single state will be awarded more than $700,000…