Michigan Homebuilders Training: Integrating Building Codes, ENERGY STAR , and Building America

1. Michigan Homebuilders Training:Integrating Building Codes, ENERGY STAR, and Building America Case Study Documenting an Integrated Workshop Approach - 2007

2. Overview • Background • Partners • Workshop Results • Recommendations & Conclusions

3. MI Homebuilders Training - Background Goal of integrating the following subjects for Michigan Homebuilders: • Michigan Uniform Energy Code • ENERGY STAR homes & products • Federal tax credits for new home construction • Building America best practices

4. MI Homebuilders Training - Background Project Objectives: • Emphasize the state residential energy code in relation to other building standards • Increase # of builders building ENERGY STAR homes & using ENERGY STAR products • Increase # of homes built to the federal tax credits standard • Increase use of Building America best practices

5. MI Homebuilders Training - Background Streamlined Project Objectives: • De-mystify the various construction standards (state code, ENERGY STAR, LEED for Homes etc.) • Demonstrate that energy efficient homes can be constructed in a cost-effective manner beneficial to builders and homeowners

6. MI Homebuilders Training - Background Methodology: • Workshop format: 6 half-day Michigan sessions • Presentation showing 3 different home styles achieving: 1) state energy code compliance, 2) ENERGY STAR certification & 3) federal tax credit qualification

7. MI Homebuilders Training - Background Methodology: • Presentation also included Building America best practices • ENERGY STAR products were emphasized throughout • Michigan focus with all construction examples

9. Energy Use Comparison

10. Air Flow Retarder System • Exterior • 1” layer of XPS insulating sheathing • seams taped

11. MI Homebuilders Training: Partners Michigan Energy Office plus: • Michigan Energy Demonstration Centers (nonprofit education organizations) • Building America partner Venture, Inc. • Home Energy Raters (workshop presenters) • Homebuilders Association • Professional Program Evaluator

12. MI Homebuilders Training: Results • 7 sessions completed • Geographic spread: Detroit area (2 sessions), Ann Arbor (2 sessions), Lansing, Grand Rapids, Marquette • 167 participants • Pre-surveys completed before the sessions (assess current building practices & knowledge)

13. MI Homebuilders Training: Results • Post-surveys completed after the session (gather info. on participant reactions to the workshops) • Home Energy Raters provided practical info. to building professionals

14. MI Homebuilders Training: Results Evaluation included: • Assessment of the operation - delivery of the program (review of project materials – interviews with project managers and staff) • Estimations of potential energy savings as a result of the project (qualitative methods)

15. MI Homebuilders Training: Results Evaluation: • Program was well administered • Deliverables within budget • Despite concentrated delivery time, sessions were completed as planned • “Front-end” presentation preparation from SEO was helpful

16. MI Homebuilders Training: Results Evaluation: • Workshop presenters exhibited good experience in the field • Project managers attended sessions to monitor content quality

17. MI Homebuilders Training: Results Attendee breakdown: • 113 – direct housing construction ties • 54 – related professionals (gov., nonprofit, utilities etc.)

18. MI Homebuilders Training: Results Pre-survey results: • Previously built an ENERGY STAR home: 26% (8% built more than 1) • Had a HERS rating on their home: 30% (8% had more than 1) • Always or usually offer extra EE options: 62%

19. MI Homebuilders Training: Results Pre-survey results: • Are very familiar with the Michigan energy code: 25% • Are somewhat familiar with the Michigan energy code: 50% • Know the requirements of the federal tax credit for new homes: 23% • Applied for a federal tax credit: 19%

20. MI Homebuilders Training: Results Pre-survey results: • Relatively low pre-existing level of knowledge & experience w/ advanced EE construction (suggesting even lower levels of knowledge from other builders)

21. MI Homebuilders Training: Results Post-survey results: • Positive assessment of workshops from attendees • Purpose of training was clear: 93% • Met or exceeded expectations: 96% • Very useful or fairly useful: 97% • Learned new building science info: 86%

22. MI Homebuilders Training: Results Post-survey results: • Most important finding: 95% said they would apply info learned to their own building practices

23. MI Homebuilders Training: Results Energy Savings Impact: • Training programs present challenges for estimating energy savings impact • Hypothetical scenario: ½ of the attendees responsible for 3 additional ENERGY STAR rated homes following the training (conservative assumption)

24. MI Homebuilders Training: Results Energy Savings Impact: • Energy savings per home: estimates provided from HERS presenters with software modeling • Average estimated annual energy cost savings per medium sized home built to ENERGY STAR standards: $700 • 83 attendees X 3 homes X $700 = $174,300 annual savings

25. MI Homebuilders Training: Results Energy Savings Impact: • Conservative estimation suggests 1 year of resulting energy savings is more than twice the project budget cost ($74,000) • Translates to about ½ year payback period for the project • Assuming a 40 yr. lifetime of a new home, lifetime energy savings are approx. $7 million at current energy prices – exceeding project costs by almost 100 fold

26. MI Homebuilders Training: Results Energy Savings Impact: • This all assumes no “spill-over” savings potentially resulting from the training beyond the 3 new homes per 83 attendees

27. MI Homebuilders Training: Conclusions • In the absence of actual impact evaluation results, a conservative projection of energy savings far exceeds the project costs • HERS providers/workshop presenters provided valuable insights to evaluator regarding: • perceived marketplace obstacles • effective EE features to promote to customers, and • suggestions of how to increase the # of ENERGY STAR rated new homes

28. MI Homebuilders Training: Recommendations • The evaluation suggested this type of training approach should be reproduced on a larger statewide scale reaching more builders • Couple the training effort with utility sponsored financial incentives to builders and/or home buyers • Concentrate future training sessions during builder’s off-season • Diversify future training to accommodate builders new to the EE concept and seasoned EE experienced builders • Consider having the program pay for one home energy rating for each builder attending a workshop

29. MI Homebuilders Training: Conclusions • Project was well-designed & delivered w/ responsible administration & good quality control • Existing level of EE knowledge of builders attending was fairly low – suggesting builders who did NOT attend would feature a lower level of EE knowledge • Attendees rated the training very high • Using conservative assumptions, the project will likely result in total energy savings far in excess of the costs of the project

30. Finished Cape Cod

31. Michigan Homebuilders Training:Integrating Building Codes, ENERGY STAR, and Building America