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Home Star Update

Home Star Update. Toward the Finish Line in the Senate. Larry Zarker BPI. Construction Industry Employment. Manufacturing 24.5 % drop in construction related manufacturing Construction-related manufacturing at less than 62% of capacity Construction Retail

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Home Star Update

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  1. Home Star Update Toward the Finish Line in the Senate Larry Zarker BPI

  2. Construction Industry Employment Manufacturing • 24.5 % drop in construction related manufacturing • Construction-related manufacturing at less than 62% of capacity • Construction Retail • 14% drop in employment since 2006 Construction • 24.7% unemployment in construction industry (from 18.7% in October) • 38% drop in employment since 2006

  3. HOME STAR Program • Cost: $6 Billion • Homes: 3.3 Million • Jobs: 168,000 • Homeowner Saving (10 yr.): $9.4 Billion • Equivalent Cars Off-Road: 615,000 Cars • Power Generation Offline: 4 x 300MW Plants HOME STAR $6 Billion • SILVER STAR • $3.6 Billion • GOLD STAR • $1.8 Billion • Financing / QA / Admin • $600 Million

  4. Built upon the solid policy foundation of delivering real jobs through the private sector to accomplish public imperatives, Home Star is the most important piece of legislation for residential energy efficiency ever.

  5. Policy Objectives • Rapid Deployment • Leverage existing systems and infrastructure • Avoid the need for rule making or procurement • Market-Based • Match public dollars with homeowner investment • Empower existing business and organizations • Pathway to Performance • Short-term job creation • Long-term transformation • Broad Support • Retail, Manufacturing, Contracting, Labor, and Environmental groups • A win for the Environment, Economy and American Workers.

  6. .

  7. $3,000 incentive for a 20% savings • $1,000 for each additional 5% savings • Not to exceed 50% of project cost or $8,000 • Energy Assessment • Retrofit • Fundamentals • Weatherization • Insulation • Major systems • Heating / Cooling • Water Heating • Renewables • Solar • Contractor Accreditation • BPI or equivalent 3. Quality Assurance

  8. HOME STAR Program Actors State Quality Assurance System • State system that regulates QA providers network in state. Federal Rebate System • Federal Database system that tracks jobs uploaded by Rebate Aggregators, notifies QA providers, and processes rebate requests. Quality Assurance Provider • Third party (non contractor) entities that conduct on-site quality assurance inspections, insure contractor eligibility. Entities can be State offices or can be delegated to private contractors (most common). • Entity that aggregates job data and rebate forms, checks to ensure eligibility and accuracy, uploads to Federal Rebate System, then distributes payments. QA providers, State energy offices, and national companies are all eligible to be Rebate Aggregators as determined by the secretary. National Contractors can perform Aggregator role but not QA role Rebate Aggregator Contractor • Entity that enters into contracting agreement with homeowners. Rebate amount is fronted at time of purchase and floated by this entity until completion and processing.

  9. Senator Reid on Home Star’s Chances POLITICO's Morning Energy (9/8/10) By Josh Voorhees THE EVER-SHRINKING ENERGY AGENDA - After failing to pass a sweeping energy and climate package earlier this year, Senate Democrats are again considering taking the knife to their wish list in a bid to move whatever they can from their now-fractured agenda. “We can't get everything done at once,” Majority Leader Harry Reid conceded last night at his Las Vegas clean energy forum. “We're going to have to start looking at some piecemeal legislation. FIRST UP? - Reid suggested that one of the first pieces of energy legislation that he may try to move would be a two-pronged package of natural gas vehicle legislation and the Home Star retrofit program. “Once we get the election out of the way, I think we can do that. And even before the election I think we should take a run at it… Even Washington is ready for that, so I'm going to try.”

  10. Home Star in the Senate: Clean Energy Jobs and Oil Company Accountability Act of 2010

  11. Energy Bill Has Six Divisions: A. Oil Spill Response and Accountability. Reducing Oil Consumption and Improving Energy Security. Clean Energy Jobs and Consumer Savings. Protecting the Environment. Fiscal Responsibility. Miscellaneous.

  12. Senator Reid on Home Star’s Chances POLITICO's Morning Energy (9/8/10) By Josh Voorhees THE EVER-SHRINKING ENERGY AGENDA - After failing to pass a sweeping energy and climate package earlier this year, Senate Democrats are again considering taking the knife to their wish list in a bid to move whatever they can from their now-fractured agenda. “We can't get everything done at once,” Majority Leader Harry Reid conceded last night at his Las Vegas clean energy forum. “We're going to have to start looking at some piecemeal legislation. FIRST UP? - Reid suggested that one of the first pieces of energy legislation that he may try to move would be a two-pronged package of natural gas vehicle legislation and the Home Star retrofit program. “Once we get the election out of the way, I think we can do that. And even before the election I think we should take a run at it… Even Washington is ready for that, so I'm going to try.”

  13. Gold Star Accreditation Requirements IN GENERAL. A contractor may perform retrofit work under the Gold Star Home Retrofit Program only if the contractor— (A) meets the requirements for qualified contractors under subsection (a); (B) is accredited (i) by the BPI; or (ii) under other standards that the Secretary shall approve not later than 30 days after the date of submission, in consultation with the Administrator, under an equivalent accreditation approved by the Secretary under which the contractor, at a minimum…..

  14. Equivalent Accreditation Criteria (I) educates the consumer on the value of comprehensive energy retrofit work; (II) meets whole house contracting standards in conducting home performance work relating to home energy auditing, health and safety testing, heating, air-conditioning, and heat pumps; (III) employs sufficient levels of staff who are certified to the standards covering the appropriate whole house energy audits and retrofit upgrades; (IV) maintains calibrated diagnostic equipment for use in conducting energy retrofitting, assessment, and health and safety testing on the house; (V) records and maintains all project information for review during the quality assurance inspection; (VI) maintainsquality assurance records of internal reviews of the operation and performance of the business; (VII) adopts a customer dispute resolution policy that establishes a specific time line in resolving any disputes with the consumer; and (VIII) meets such other standards as are required by the Secretary.

  15. Key Differences • House bill provides rebates to consumers • Senate bill provides rebates to contractors • House bill does not include financing section; Senate bill does. • Senate bill includes WaterSense features • Senate bill did include tax credits in S3434 but that is omitted in the Energy Bill.

  16. Key Issues • “Pay For” • Finding 60 votes – Tenuous Bi-Partisan Support • Recess Looming • Fall elections Lame Duck Session • New Congress • Scope of the Energy Bill

  17. Reduce Energy Bills at Home Act • Sponsored by Senators Snowe and Bingaman • Extends 25C for an additional two years and raises cap to $3,000 from $1,500 • Raises caps on certain high efficiency equipment up to the full $3,000 • Requires that DOE provide recommendations on future eligibility for federal tax credits

  18. Advanced Energy Tax Incentives Act of 2010 • Introduced last week by Senators Snowe (R-ME) and Bingaman (D-NM) • Broad range of tax credit incentives for efficiency in buildings, industry, vehicles, and manufacturing • Sec. 101 – Extends New Home Tax Credits • Sec. 104 – Credit for H.P. Auditor Certifications • Sec. 105 – Credits for H.P. Home Improvements

  19. Key Provisions of Sec. 105 (25E) • Home Performance Audit Requirements • Up to $8,000 in Tax Credits for Eligible Home Performance Improvements • Base Incentive of $3,000 for Homes Built Before 1940 and $2,000 for Homes Built After That • Work Must be Performed by a Contractor Accredited by BPI

  20. Capitol Circle Membership in Efficiency First • Manufacturers’ Council • Policy Advice on Trade Association Direction • Regular Access to Leadership of Trade Association • Monthly legislative conference calls with the Efficiency First lobbyist and board members to discuss strategies and set priorities. • Key logo placement on web site.

  21. Join the center of the industry. RegionalConferences NationalConference Colorado ENERGY STAR Summit December 8 - 9, 2010 Denver, Colorado ACI California Conference 2011January 10 – 11, 2011Los Angeles, California ACI Northwest Conference 2011February 1 – 2, 2011Portland, Oregon ACI National Home Performance Conference March 28 – April 1, 2011 San Francisco, California It’s all here at ACI. www.affordablecomfort.org

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