NC Affordable Housing Conference November 1-2, 2011 ∙ Raleigh, NC

1. NC Affordable Housing ConferenceNovember 1-2, 2011 ∙ Raleigh, NC

2. Southern Energy Management About • Founded in 2001 in Raleigh, NC • A leading solar integrator and building performance company in the Southeast and Mid-Atlantic. • Team of 110 professionals working from 4 offices: Raleigh, Charlotte, and Wilmington, North Carolina, and Greenville, South Carolina. • Serving homeowners, builders, businesses, government, & utilities • 5 Time EPA National ENERGY STAR® Partner of the Year • 10,000+ ENERGY STAR® Homes qualified to date

3. 3 Recognition Southern Energy Management Our Mission Have a measurable impact on global greenhouse gas emissions. Build a sustainable, triple-bottom-line company that values people, planet and profit. • SEM is a B Corporation • 2011 City of Raleigh Environmental Stewardship • National Energy Star Partner of the Year, past 5 years in a row • NCSEA Sustainable Business of the Year, and board chair • NC Companies to Watch

4. “Green” Building Program Experts

5. Different Names for “High-Performance” • Energy Efficient • Green • Sustainable • Healthy • Environmentally Responsive • Better Buildings

6. How to Define a High Performance Home? Energy Indoor Environment Water Healthy Comfortable Durable Energy Efficient Environmentally Responsible Site Materials

7. Why Build Green? • In the US, buildings account for: • 36 percent of total energy use. • 65 percent of electricity consumption • 30 percent of greenhouse gas emissions • 30 percent of raw materials use • 30 percent of waste output (136 million tons annually) • 12 percent of potable water consumption • Source: U.S. Green Building Council

8. US Building Energy Consumption Since 2000 … • buildings consumed more energy than industry or transportation • 36% of this energy was spent on space conditioning • Americans spent over $95 billion to heat and cool buildings (Kibert et al. 1994; Zeiher 1996; EBN 2001)

9. The Solar Opportunity The amount of sunshine energy that hits the surface of the earth every minute is greater than the total amount of energy that the world’s human population consumes in a year!

10. Some data to consider: 70%of home buyers are more inclined to buy a green home during a down economy Source: SmartMarket Report, McGraw Hill Construction, 2008

11. What Buyers Want… Survey Says 36%of homebuyers identify the environment, energy savings, or health benefits as primary factor for buying their next home Source: RCLCO Study, Measuring the Market for Green Residential Development, 2008

12. What Buyers Want… Survey Says Over 80%would choose one home over another based on energy efficiency Source: Shelton Group, EnergyPulse Survey, 2008

13. What Buyers Want… Survey Says • Green not just high-end buyers • 50% choosing green features earned less than $75,000 • 30% earned under $50,000 Source: McGraw-Hill study, 2008

14. What Buyers Want… Survey Says 87%of green homeowners are more satisfiedthan with a previous non-green home Source: SmartMarket Report, McGraw Hill Construction, 2008

15. Why Certify Green

16. Benefits of Green Building Programsfor Developers • Energize/galvanize and cohere future resident support for the project. • Involve and placate surrounding neighbors who may initially be wary of the project. • Overcome NIMBYism and stigmatization. • Improve and accelerate project approvals.

17. Benefits of Green Building Programsfor Homeowners • Improve Affordability • Reduced cost of ownership • Greater retained value / higher resale • Enhance Quality and Durability • Improved Life-Cycle Costs • Better value for homeowner

18. Benefits of Green Building Programsfor Homeowners • Enhance Health of Occupants • Improved air quality • Reduced pollutants • Residents of green buldiings have 40-60% less incidents of colds, flu and other respiratory problems • Support Community • Connection to neighbors, natural surroundings • Pride in ownership • Public transit provides connection to jobs, businesses

19. Why Certify Affordable Housing Projects • Meet Lenders Expectations • HUD • Fannie Mae • Enterprise • Equity Partners • Asset Value Retention • Savings for the long term • Durability • Reduced maintenance

23. What are Green Homes? • Meets Building Code • Structurally Safe and Sound • Exceeds Building Code by 15% or more • Energy Efficient • Healthy & Safe • Durable • Energy Efficient • Healthy & Safe • Durable • Water Efficient • Environmentally Responsive • Sustainable Community Typical Home

24. What Makes A Home Green National Green Building Standard ICC-700 This is what defines a green home, MF building, or land development.

27. Types of 3rd Party Verification Tasks • Design Reviews • Checklists • Inspections • Performance Testing • Documentation

28. HERS Index

29. What Are Ratings Used For? • Energy Efficient Mortgages • ENERGY STAR Home labeling • Performance option for energy code compliance • State / utility funded energy efficiency programs

30. Program Scope and Applicable Building Types Single-Family Homes Low-Rise Multifamily Mid-Rise Pilot Single-Family Production Gut Rehab

31. Hope Crossing, Durham NC

33. Organization is Key to Success Helpful tips: • Identify and define Project Team early • Know what credits are influenced by design • Track all meetings with date and attendees • Establish online sharing or saving of documentation and checklist

37. Water Efficiency (WE) Water Efficiency (WE) www.epa.gov/WaterSense

38. Energy and Atmosphere (EA) Energy & Atmosphere (EA) • 2 Paths – • Performance OR Prescriptive • Both paths require performance testing and energy efficient strategies

39. Energy and Atmosphere (EA) Energy & Atmosphere (EA) Performance Path: HERS = Points

40. Energy and Atmosphere (EA) Energy & Atmosphere (EA) • Prescriptive Path: Points for each strategy • Specs on: • Insulation • Windows • HVAC • Plus performance testing requirements • Water Heating • Appliances • Lighting

42. Is it affordable? Cost of Green Building • Potential Learning Curve costs • Design and Construction Costs • Verification • Registration/Certification Costs

45. Benefits of Green Building Programsfor Developers • Energize/galvanize and cohere future resident support for the project. • Involve and placate surrounding neighbors who may initially be wary of the project. • Overcome NIMBYism and stigmatization. • Improve and accelerate project approvals.

46. Benefits of Green Building Programsfor Homeowners • Improve Affordability • Reduced cost of ownership • Greater retained value / higher resale • Enhance Quality and Durability • Improved Life-Cycle Costs • Better value for homeowner

47. Benefits of Green Building Programsfor Homeowners • Enhance Health of Occupants • Improved air quality • Reduced pollutants • Residents of green buldiings have 40-60% less incidents of colds, flu and other respiratory problems • Support Community • Connection to neighbors, natural surroundings • Pride in ownership • Public transit provides connection to jobs, businesses

48. Resources Design advice for developers, descriptions of projects: http://www.designadvisor.org/ NC Case Study: http://www.ecohomemagazine.com/news/2010/05/case-study-north-carolinas-first-green-multifamily-affordable-housing.aspx US Green Building Council: WWW.USGBC.ORG Rocky Mountain Institute: WWW.RMI.ORG

50. Thank You! Maria Kingery, Co-Founder 919.836.0330, ext 111 maria@southern-energy.com Twitter: @mariakingery www.southern-energy.com