Delivering Whole House Solutions Federal Efforts

1. Delivering Whole House SolutionsFederal Efforts Ely Jacobsohn Building Technologies Program U.S. Department of Energy September 21, 2010

2. Improving Efficiency U.S. spends $1.1 Trillion per year on energy If the U.S. became 20% more efficient, it would: Save more than $200 billion annually EFFICIENCY IS A RESOURCE. Source: McKinsey, Unlocking Energy Efficiency in the U.S. Economy, 2009

3. Federal Perspective on Whole House Retrofits GOAL To retrofit 1.3 million homes by 2013

4. IMAGINE… Efficient Homes 127 million U.S. households Imagine retrofitting 5-10 million homes each year Source: U.S. Census

5. Federal Perspective on Whole House Retrofit May, 2009: Vice President Biden called on the Council of Environmental Quality to develop a plan for Federal action to lay the architecture for a self-sustaining home energy efficiency retrofit industry. Recovery Through Retrofit

6. Overview • Recovery Through Retrofit (RTR) agencies developing: • A national home energy performance measure • An energy performance label for homes • National workforce certification & standards guidelines • Support for state revolving loan funds, improved access to EE through mortgage products

7. Residential Retrofits: Addressing Market Barriers Motivate Homeowners and Improve Supply of High Quality Services & Access to Financing Consumer Information Consumers do not have access to straightforward and reliable information. New Delivery Models Need residential retrofit programs with faster uptake / lower transaction costs Worker Certification & Training Consumers need access to clearly identifiable skilled workers Financing Homeowners need access to financing to pursue investments in EE Innovation / Market Segment Focus Need to address new technology, low income, multifamily, etc,

8. Consumer Information • National Home Energy Score • Asset based home assessment • Voluntary • Provides • Score based on a number of house characteristics • Recommendations for home improvements • Estimate of savings from cost-effective improvements • Recommendation to get further detail from certified home auditor • Offered by qualified assessor • Administered by partnering organization(s) • Supported by • Web site information • Registry to store score information about homes for public viewing • Available for piloting this Fall Recommendation of the Vice President’s Middle Class Task Force

9. Home Performance Measures for Existing Homes DRAFT

10. Workforce Development: Voluntary National Home Retrofit Guidelines Recommendation of the Vice President’s Middle Class Task Force Key Elements • WORK • Standard Work Specifications: Enable programs to strengthen field guides /manuals • Technical standards reference guide: Catalogue of standards developed by industry or third-party organizations • WORKFORCE • Job Task Analyses: Assist training providers with course content and curricula for • Energy Auditor, Installer/Technician, Crew Chief, and Quality Assurance Professional/Inspector • Knowledge, Skills and Abilities: A foundation upon which to base worker credentials; increase workforce mobility up career ladders and across career lattices Next Steps • Public comment Fall, 2010 • Deploy through WAP and other grantees (eg “Better Buildings”) • Lay foundation for robust worker certification and training program accreditation • Build confidence with consumers and EE finance community that retrofit work delivers expected benefits

11. Why National Guidelines? • No comprehensive set of standards for entire range of whole-home energy retrofit interventions • BPI Technical Standards and WAP Field Guides = Assortment of technical standards, core competencies, work protocols, and best practices • WAP community, home performance industry, consumers, lenders, manufacturers, and retrofit program administrators all looking for consistent national standards • Time for Federal leadership and industry partnership

12. National Residential Retrofit Guidelines - WORK Description Developed By Techniques, methods, or processes believed to be the most efficient and effective way of meeting the Standard Work Specifications Companies, retrofit crews, or individuals Best Practices Sets of guidelines or rules that govern work procedures and often invoke Technical Standards Retrofit program administrators or individual companies Work Protocols Define the performance requirements for high quality work and minimum conditions needed to achieve desired outcomes Technicians and retrofit industry representatives (including building trades, manufacturers, and building scientists) Standard Work Specifications* Industry or third-party standards development organizations—for example, ASHRAE, ASTM, and BPI Define safety, materials, installation, and application standards relevant to residential retrofits Technical Standards* * National Residential Retrofit Guidelines Draft Deliberative, For Discussion Purposes Only, Not for Citation

13. National Residential Retrofit Guidelines - WORKFORCE Description Developed By Evaluation/assessment of skill standards in accordance with ANSI 17024 Standard for Personnel Certification (or equivalent) Accredited Personnel Certification Entities Certification Minimum knowledge, skills, and abilities that workers should possess to perform high quality work Retrofit technicians, trainers, and program officials with professional psychometricians Essential KSAs* Retrofit technicians, trainers, and program officials with professional psychometricians Identifies and inventories a job’s critical tasks Job Task Analysis* * National Residential Retrofit Guidelines Draft Deliberative, For Discussion Purposes Only, Not for Citation

14. Financing Recommendation of the Vice President’s Middle Class Task Force • Assisting grantees in development of various financing options • Unsecured revolving loan funds; • Loan loss reserves • FHA Financing demonstration program • On-bill utility financing • Providing TA • Guidance • Best practices • ~ $600 million of DOE-administered Recovery Act funding supporting financing programs. • Revolving loan funds established in ~35 states • Estimated to be matched by $1.5 billion in state or private sector funds

15. New Delivery Models • Vision: Create self-sustaining market for building energy efficiency retrofits • Grants • 35 local and state governments (reaching more than 50 communities) • 3-year awards from $1.5 million to $40 million and $486 million total • Innovative models for single / multifamily building retrofits; and low income, small business, commercial, farms, and historic buildings • Progress • Kicked off in July 2010 • Communities developing implementation plans • Technical assistance being provided, emphasis on financing solutions • Projected Results • 200,000+ buildings retrofitted (majority residential) • Retrofits of at least 15% energy savings; some >30% • Data collection to determine effective technologies, measures, approaches

16. BetterBuildings Program Elements • Outreach Approaches: • Neighborhood sweeps • Door-to-door • Community organizations (churches, foundations) • Major events • Web-based approaches • One stop shops • Labeling systems • Retail store partnerships • Grass-roots campaigns • Community colleges & universities

17. Better Buildings Communities Served Berlin, Plymouth, Nashua NH West Rutland, VT Madison, Milwaukee, Racine, WI Bainbridge Island Seattle Indianapolis Grand Rapids, Detroit, SE MI ME Portland Lowell, MA MA Fayette County OR NY Connecticut Innovations MI Bedford, NY Omaha San Francisco Camden, NJ Toledo Chicago Philadelphia, PA OH Lincoln Eagle Co. University Park, MD Maryland Riley Co. Cincinnati CA Denver, Boulder, Garfield Co. Charlottesville, VA KY MO Kansas City Hampton Roads, VA Carrboro and Chapel Hill, NC Santa Barbara Los Angeles Greensboro, NC Charlotte, NC San Diego Phoenix Charleston, SC Atlanta Decatur Austin Jacksonville, FL San Antonio New Orleans U.S. Virgin Islands Huntsville, AL PR St. Lucie County = Round 1 = Statewide Program = SEEA = Round 2

18. WAP Recovery Act Update ($5.2 B) 30,000+ homes weatherized per month; 200,000+ homes through August 2010 On target for 300,000 homes by 12/10; nearly 600,000 homes by 3/31/12 Ramping up Quality Assurance WAP Innovation Grants ($30M) Pilots to increase the leverage/effectiveness of Federal funding thru traditional and/or nontraditional weatherization providers. 16 Selections for 2-year projects – address financing programs for multi-family properties, workforce development, new technologies and behavior interventions, and incorporating Green and Healthy Homes approaches Will leverage $96 million (3.2x) and weatherize over 19,000 homes Wilkes-Barre, PA received a grant for $2.4M to evaluate whether in-home metering equipment in weatherized homes will encourage consumer conservation thereby increasing residents’ energy savings. Sustainable Energy Resource Grants ($90M) Available from WAP Recovery Act based on EISA 2007 formula Adds “renewable and domestic energy technologies” not currently covered Funded 27 states, 100 local agencies for technologies including: solar hot water and PV, high-efficiency hot water, residential wind, cool roofs, and in-home devices. Supporting Low-Income Families

19. Challenges to Overcome • U.S. home improvement market is mired in a severe downturn • A variety of factors driving re-modeling down • Existing home sales, a primary driver of home improvement spending, were off 30% from their peak • Depressed homes prices resulting in lower equity • Increase in mortgage delinquencies and foreclosures • Not enough robust data on energy efficiency savings - Hard to convince financing organizations and utility regulators • Difficult to engage the consumer • Market appeal for EE Three trends that could serve as growth drivers • Growth in immigrant homeowners • Need to upgrade aging rental stock • Increasing consumer interest in green remodeling

20. Recap In partnership with industry and state and local governments, the federal government is: • Providing access to energy information for consumers • Developing retrofit industry guidelines to improve the workforce • Facilitating consumer access to financing • Developing and testing new program models to deliver retrofits to consumers • Targeting segments of the population with the most effective and innovative technologies and strategies

21. Questions? Ely Jacobsohn Building Technologies Program, U.S. Dept of Energy Ely.Jacobsohn@ee.doe.gov 202-287-1333 www.eere.doe.gov