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Delivering On Our Promise

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Presentation by Matt Golden, Founder of Sustainable Spaces on the importance of energy efficiency measures for the home to our nation

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Delivering On Our Promise

  1. 1. Delivering On Our PromiseSustainable Solutions to Achieve OurClimate and Economic Goals<br />
  2. 2. Agenda<br />Rethinking Our Approach<br />Strategies for Carbon Reduction<br />Disconnect Between Strategy and Policy<br />Delivering Market Transformation<br />From Theory to Practice<br />Pathways to Success<br />
  3. 3. Efficiency First, Washington DC<br />Representing America’s Home Performance Workforce<br />Non-Profit Trade Association <br />400 Member Companies<br />Active at National and State Level<br />Supporting a performance based market for residential energy efficiency retrofitting.<br />For More Information: www.efficiencyfirst.org<br />
  4. 4. Carbon Saved: The Metric that Matters<br />CARBON is the metric.<br />Focus on PERFORMANCE and measurable results.<br />The MARKET will innovate and deliver.<br />
  5. 5. What is America’s Largest Source of<br />Carbon Emissions?<br />Carbon Dioxide Emissions From Fossil Fuel Combustion<br />Residential<br />Buildings<br />Industrial<br />21%<br />Buildings<br />Passenger<br />Cars<br />11.5%<br />Transportation<br />http://www.pewcenteronthestates.org/uploadedFiles/Climate%20Change%20101,%20Technological%20Solutions.pdf<br />http://www.pewclimate.org/docUploads/ustransp.pdf<br />
  6. 6. What Does Achieving our Goals Look Like?<br />Growth Curve to Retrofit 128MM Homes By 2030<br />Retrofit 128MM Homes By 2030<br />250,000 Homes / yr.<br />10,000,000 Homes / yr.<br />Home Performance – 5M<br />Weatherization (WAP) – 3M<br />Multifamily – 1.5M<br />http://www.barackobama.com/pdf/factsheet_energy_speech_080308.pdf<br />
  7. 7. 2030 Goal:25% Reduction in Residential Energy <br />CLIMATE:<br />Equivalent to taking ½ of all passenger cars off the road<br />JOBS:<br />1.25 million direct contracting jobs<br />ENERGY:<br />Save as much energy as US imports yearly from Saudi Arabia<br />COMMUNITY:<br />Keep energy dollars local and create an annuity<br />
  8. 8. State of the Contracting Industry<br />“New home construction fell to its <br /> lowest pace on record in April” <br />- New York Times, May 2009<br />146,600 jobs have been lost in the residential building construction industry between April 2008 and 2009. <br />Housing starts were down 12.8 percent last month from March [2009], to an annual pace of 458,000. <br />http://www.businessexaminer.com/blog/8232nonresidential-construction-job-loss-slows/<br />http://www.nytimes.com/2009/05/20/business/economy/20econ.html?_r=1&scp=2&sq=housing%20starts&st=cse<br />
  9. 9. Home Performance Contracting<br />A market-based* whole-house approach to retrofit existing homes for energy, health and comfort.<br />Sustainable: Jobs in Home Performance do not require endless subsidies.<br />Leveraged: Government subsidies stimulate private sector investment.<br />Market-Based: Leverage business as the engine to achieve rapid growth.<br />*WAP or Low Income Weatherization serves the market up to 200% of poverty.<br />
  10. 10. Achieving Market-Based Success<br />
  11. 11. What Is Home Performance?<br />Audit<br /><ul><li>Solution
  12. 12. Retrofit
  13. 13. Commissioning
  14. 14. Quality Assurance</li></li></ul><li>Retrofitting Loading Order<br />Insulation<br />Air Sealing<br />Duct Sealing<br />Lighting<br />Appliances<br />Water Conservation<br />Plug Loads<br />Behavior<br /><ul><li>Heating
  15. 15. Air Conditioning
  16. 16. Ventilation
  17. 17. Water Heating
  18. 18. Solar PV
  19. 19. Solar Thermal
  20. 20. Wind
  21. 21. Water Catchment</li></li></ul><li>Section 1<br />Rethinking Our Approach<br />
  22. 22. Automobile Performance<br />1<br />?<br />Products<br />2<br />Performance<br />60<br />Miles <br />Per<br />Gallon <br />
  23. 23. Home Performance<br />1<br />?<br />Products<br />2<br />Home <br />Energy<br />Rating <br />System<br />Performance<br />85<br />
  24. 24. System Performance: Heating<br />Equipment<br /> - Efficiency / Size<br /> - Improvement: 10% - 15%<br />Behavior<br /> - Set Your Stat<br /> - Improvement: 5% - 10%<br />Performance<br /> - Efficiency<br /> - Health<br /> - Comfort<br />Delivery<br />- Fix Leaky Ducts<br />- Improvement: 30% - 50%<br />Building Load<br /> - Stop Energy Leaks<br /> - Improvement: 20% - 40%<br />Whole House vs. Products Savings<br /> Whole House Solution: 30% - 50%<br /> (Ducts, Insulation, Behavior, 40K BTU 90% Furnace)<br /> High Efficiency Furnace: 10% - 15%<br /> (100K BTU 96% Furnace)<br />
  25. 25. 1990 Clean Air Act<br />Pre 1990, EPA required emission scrubbers on smoke stacks.<br />Clean Air Act (1990) sets emission performance standards and trading system.<br />SO2<br />Results:<br /><ul><li> Emissions reduction
  26. 26. Market innovation</li></ul>1990<br />
  27. 27. Performance is Fiscal Responsibility<br />“We should be getting the savings we’re paying for”<br />
  28. 28. Product Rebates Don’t Deliver<br /><ul><li>California’s Residential Energy Efficiency Portfolio
  29. 29. CFL subsidies account for > 80% of residential energy efficiency savings.
  30. 30. CFL subsidies will not be an allowable program after 2012.
  31. 31. 75MM rebated units, only 46MM verified installed.</li></ul>Product Rebate Results: Screw-in CFLs<br />Expected vs. Realized GWh Savings<br />46% Less Savings<br />January 2006 – June 2008, California Public Utilities Commission<br />
  32. 32. Reduce Then Produce<br />“What is all the fuss about retrofitting, why can’t we just put on solar panels?”<br />
  33. 33. Cost Per Ton of Carbon Abatement<br />“The Firepower of the Lowly Caulk Gun” Wall Street Journal<br />http://online.wsj.com/article/SB123629700922046051.html<br />
  34. 34. Cost Effective Hybrid Model<br />The Moscone Center - San Francisco, CA<br />Hybrid EE + RE Project<br />Lighting Retrofit<br /><ul><li> 40% Better Lighting Quality
  35. 35. Reduced Lighting Maintenance Costs
  36. 36. Improved Energy Management</li></ul>Solar Electric<br /><ul><li>675kW Solar System</li></ul>New Efficient T-5 Old Incandescent<br />
  37. 37. Moscone Center: Retrofit Summary<br />Savings / Yr <br />Energy Reduction<br />Payback Period<br />Cost<br />Energy Efficiency<br />Solar<br />6 Years<br />4,500,000 kWh<br />$3.2 MM<br />$540,000<br /> 825,000 kWh <br />42 Years<br />$99,000<br />$4.2 MM <br />Hybrid<br />12 Years<br />$639,000<br />$7.4 MM<br />5,325,000 kWh<br />$639,000 Annual utility bill savings<br />$429,000 Annual debt service costs (20 year bond at 5.5%)<br />$210,000ANNUAL NET SAVINGS<br />http://www.votesolar.org/moscone.html<br />
  38. 38. Reduce Then Produce<br />http://globalghgcostcurve.bymckinsey.com/<br />
  39. 39. Technology Neutrality<br />“Level the playing field<br /> and unleash the market.”<br />
  40. 40. Meet Our Homeowners<br />City: Lafayette, CA<br />Concerns: <br />High energy bills<br />Daughter has asthma<br />Drafty/cold in the winter<br />Savings<br />Health<br />Climate<br />Comfort<br />
  41. 41. Meet Their Home<br />Age: 1958<br />Size: 2,200 ft2<br />Annual Electric: $1,115<br />Annual Gas: $1,013<br />Carbon Emissions: 8.6 Tons/Year<br /><ul><li>Infiltration: 3405 CFM50 (.68 ACHnat)
  42. 42. Attic Insulation: R 6.4 Fiberglass Batt (low quality)
  43. 43. Wall Insulation: No Insulation
  44. 44. Floor Insulation: No Insulation
  45. 45. Duct Leakage: 25%</li></ul>168<br />
  46. 46. Option 1: Efficiency Retrofit<br />Energy Efficiency Retrofit<br />25% Reduction in Electricity<br />54% Reduction in Natural Gas<br />Improved Health and Comfort<br />Work Scope<br /><ul><li>Duct Sealing
  47. 47. Air Sealing
  48. 48. Attic Insulation
  49. 49. Wall Insulation
  50. 50. Lighting Retrofit
  51. 51. Energy Star Refrigerator</li></ul>40% Reduction in Energy Bills<br />
  52. 52. Option 2: Solar Electric<br />Solar Electric System<br />73% Reduction in Electricity<br />0% Reduction in Natural Gas<br />No Health or Comfort Improvement<br />Peak Load Reduction<br />Work Scope<br /><ul><li>3.5 kW Solar PV</li></ul>40% Reduction in Energy Bills<br />
  53. 53. What is the Real Cost?<br />3.5 kW <br />Solar Electric<br />Energy Efficiency Retrofit<br />60% Faster<br />60% Less<br />Annual Savings: $825 $825<br />CO2 Reduction: 2.7 tons 3.6 tons <br />Total Cost: $28,000 $10,800 <br />Simple Payback: 33.9 yrs 13.6 yrs <br />33% More<br />* Based on carbon abatement achieved over 20 years.<br />
  54. 54. A Ton of Carbon is a Ton of Carbon<br />Solar<br />Retrofit<br />Total Cost: $28,000 $10,800<br />Cost to Client: $13,300 $10,168<br />Rebates / Incentives: $14,700 $632<br />Annual Savings: $825 $825<br />CO2 Reduction: 2.7 tons 3.4 tons <br />*Rebate / Ton of C0 2 $246 $9 <br />http://www.spur.org/publications/library/report/critical_cooling<br />
  55. 55. Why Do We Value Carbon Abatement fromRenewables More than Efficiency?<br />It’s the METER <br />that MATTERS!<br />
  56. 56. Section 2<br />Strategies for Carbon Reduction<br />
  57. 57. California Energy Commission (CEC):Loading Order<br />Priority<br />Priority for use of Public Good Charges<br />Energy Efficiency<br />High<br />Demand Response<br />Renewable Resources<br />Distributed Generation<br />Low<br />http://www.energy.ca.gov/2005publications/CEC-400-2005-043/CEC-400-2005-043.PDF<br />
  58. 58. California Solar Initiative<br />“By January 1, 2008, the commission… shall require reasonable and cost‐effective energy efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems”<br /> - CEC Guidelines for CA Solar Incentive Programs<br />http://www.cleanenergystates.org/library/Reports/CEC-300-2007-012-CMF_Guidelines_CA_Solar_Incentive_Programs_Dec2007.pdf<br />
  59. 59. California AB32: Global Warming Solutions Act<br />Establish a statewide GHG emissions cap for 2020, based on 1990 emission levels.<br />Local governments: <br />15% reductions in GHG by 2020.<br />http://www.arb.ca.gov/cc/factsheets/ab32factsheet.pdf<br />
  60. 60. California Air Resource Board (CARB): AB32 Implementation Plan<br />Increased Building Efficiency<br />and Appliance Standard<br />26.4 Million Metric Tons<br />12X<br />California Solar Initiative<br />2.1 Million Metric Tons<br />http://www.arb.ca.gov/cc/cc.htm<br />
  61. 61. California Public Utility Commission: Long Term EE Strategic Plan<br />CPUC Existing Home Retrofitting Goal<br /><ul><li>40% energy reduction in existing homes energy use by 2020
  62. 62. 1MM Homes Per Year
  63. 63. 125K Retrofitting Jobs
  64. 64. $13+ Billion / Year</li></ul>Source: California Public Utilities Commission<br />http://docs.cpuc.ca.gov/efile/RULINGS/85173.htm<br />
  65. 65. Section 3<br />Disconnect Between <br />Strategy and Policy<br />
  66. 66. Plans vs. Reality<br />Strategies get it right:<br />Set the end goal<br />Focus on performance not product<br />Policies get it wrong:<br />Focus on product incentives<br />Misaligned incentives when compared to results<br />
  67. 67. Stimulus Tax Credit<br />Average Credit (Dollars)<br />30% Capped @ $1500<br />(No Labor Included)<br />30% Capped @ $1500<br />(Labor Included)<br />30% Uncapped<br />(Labor Included)<br />http://www.sustainablespaces.com/stimulus.pdf<br />
  68. 68. California State Rebates<br />Average Rebate (Dollars)<br /> $0.15 / sqft<br />$300 / unit<br />$1.40 / W <br />http://dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=CA<br />
  69. 69. Cost-Effectiveness<br />Annual Rate of Return (%)<br />
  70. 70. Local Jobs<br />Labor as % of Project Cost<br />
  71. 71. Misaligned Priorities?<br />Incentives<br />Effectiveness<br />
  72. 72. “How are these policies being implemented locally?”<br />
  73. 73. San Francisco Climate Action Plan<br /><ul><li>Reducing overall greenhouse gas emissions to 20% below 1990 levels by 2012</li></ul>19% Residential<br />http://sfenvironment.org/downloads/library/climateactionplan.pdf<br />
  74. 74. San Francisco Climate Action Plan<br />Residential Reduction Goals from Energy Efficiency<br />Efficiency<br />Solar<br />Combined Reduction Goals from Renewables<br />85% of SF’s residential climate goals<br />delivered through Energy Efficiency<br />http://sfenvironment.org/downloads/library/climateactionplan.pdf<br />
  75. 75. San Francisco Implementation<br />SF - Solar Energy Incentive Program <br />$6,000 Residential City Solar Incentive<br />Plus: $1.50 Watt CA Rebates and Federal Tax Credits 30%<br />SF – Residential Energy Efficiency Program<br /> No Incentives<br />2 kW Solar System in San Francisco<br />Public Contribution: 70%<br />http://www.sfenvironment.org/downloads/library/solarincentives.pdf<br />
  76. 76. One Market<br />”Incentives favoring renewables disincentivizes energy efficiency.”<br />
  77. 77. Section 4<br />Delivering Market Transformation<br />
  78. 78. What it Takes to Scale Home Performance<br />Increase Consumer Demand<br />Financing <br />Incentives<br /><ul><li>Catalyze Market Transformation
  79. 79. Performance
  80. 80. Standards</li></li></ul><li>Achieving Market Transformation<br />Financing<br />Standards<br />Incentives<br />
  81. 81. Incentives<br />Standards<br />Financing<br />Performance-Based Incentives<br />Incentivize Results <br />Reward performance not products<br />Allow the market to make choices<br /><ul><li>Technology Neutrality
  82. 82. Stop picking winners
  83. 83. Inspire innovation</li></li></ul><li>What Models Can We Apply?<br />Incentives<br />Standards<br />Financing<br /><ul><li>Performance based on before and after Home Energy Rating Score (HERS).
  84. 84. 20% minimum improvement in energy performance grants rebate of $3,000.
  85. 85. 5% in performance improvement adds $1,000.</li></ul>Currently in US House Climate Bill<br />(Retrofit For Energy and Environmental Performance)<br />http://energycommerce.house.gov/Press_111/20090331/acesa_discussiondraft.pdf<br />
  86. 86. Standards<br />Financing<br />Incentives<br />Home Performance Financing<br />Goals:<br /><ul><li>No upfront costs
  87. 87. Paid over long-terms, up to 20 years
  88. 88. Reduced interest rates compared to traditional loans
  89. 89. The retrofit stays with the property and so should the loan</li></li></ul><li>On Property Tax Bill Financing<br />On Utility Bill Financing<br />National Green Bank<br />Green Mortgage Products<br />Aggregated ESCO Model<br />Standards<br />Financing<br />Incentives<br />What Models Can We Apply?<br />http://www.euci.com/pdf/0409-solar-finance.pdf<br />http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=26580<br />x<br />
  90. 90. Standards<br />Incentives<br />Financing<br />Home Performance Standards<br />Contractor Accreditation - Building Performance Institute (BPI) <br />All Building Analysts (auditors) Certified<br />Construction Team Lead Trade Certification<br />Yearly review of customer data<br />5% Field Quality Assurance<br /><ul><li>Certified Energy Auditor
  91. 91. RESNET Certified Rater
  92. 92. BPI Certified Building Analyst</li></li></ul><li>Section 5<br />From Theory to Practice<br />
  93. 93. Let’s Apply the Future Model<br />How does a level playing field for energy efficiency influence adoption?<br />
  94. 94. Energy Efficiency Retrofit<br />Retrofit<br /><ul><li>HERS Before: 168
  95. 95. HERS Post: 121
  96. 96. Improvement: 28%</li></ul>168<br />121<br />
  97. 97. Retrofit with Performance Incentives<br />Retrofit<br />Total Cost: $10,800<br />Rebates / Incentives: $4,832<br />Cost to Client: $5,968<br />Annual Savings (Gas/Elec.): $825<br />CO2 Reduction: 3.4 tons <br />*Rebate / Ton of C0 2 $71 <br />45% Incentive<br />* Based on carbon abatement achieved over 20 years.<br />
  98. 98. Hybrid Whole-House Solution<br />Energy Efficiency Retrofit<br />25% Reduction in Electricity<br />54% Reduction in Natural Gas<br />Improved Health and Comfort<br />2.1 kW Solar Electric System<br />Reduced from 3.5 kW to 2.1 kW<br />40% Reduction in Electricity<br />Peak Load Reduction<br />Work Scope<br /><ul><li>Duct Sealing
  99. 99. Air Sealing
  100. 100. Attic Insulation
  101. 101. Wall Insulation
  102. 102. Lighting Retrofit
  103. 103. Energy Star Refrigerator</li></ul>+<br /><ul><li>2.1 kW Solar PV</li></ul>65% Reduction in Energy Bills<br />
  104. 104. Value Engineered Hybrid Solution<br />Solar<br />Hybrid<br />Retrofit<br /> Total Cost: $10,800 $17,000 $27,800<br /> Rebates / Incentives: $4,832* $7,300 $12,132<br /> Cost to Client: $5,968 $9,700 $15,668<br /> Annual Savings: $825 $550 $1,375<br /> CO2 Reduction: 3.4 tons 1.8 tons 5.2 tons<br /> Rebate / Ton of C0 2 $71 $280 $121 <br />*Includes potential rebates from REEP incentive plus existing State rebates.<br />
  105. 105. The Whole-House Hybrid Home<br />Payback with<br />Rate Increase<br />Savings / Yr <br />Carbon Reduction<br />Simple Payback<br />Cost<br /> 6.3 Years<br />13.6 Years<br />9.7 Years<br />Energy Efficiency<br />Solar<br />7.2 Years<br />3.4 tons<br />$5,968<br />$825<br />1.6 tons<br />$550<br />21.5 Years<br />$9,700<br />Hybrid<br />$15,668<br />$1,375<br />5.0 tons<br />12.4 Years<br />Savings<br />Health<br />Comfort<br />Climate<br />
  106. 106. Finance for Immediate Savings<br />$15,688 financed at 6% over 20 years<br />Year: 1 10 20<br /> Monthly Payment: $112 $112 $112<br /> Monthly Savings: $117 $159 $230<br />$12,970<br /> Total utility bill savings: $39,850<br />Total cost of loan (20 years at 6%): $26,880<br /> NET SAVINGS: $12,970<br />* Based on Electric Rate increase of 4% per year, and Gas rate increase of 6%.<br />
  107. 107. Section 6<br />Pathways to Success<br />
  108. 108. Creating the Future Model<br />”Using the market to achieve scale and transformation”<br />
  109. 109. Tier 3: Prescriptive Measures <br />List of Measures<br />Insulation<br />Windows<br />Solar<br />HVAC<br />General Contractor<br />Pick from list of eligible measures<br />Must combine measures to achieve 20% average savings or greater<br />Lower level of incentive<br />Program sunsets after 12 months<br />
  110. 110. Tier 2: Third Party Rater<br />HERS Rating<br />HERS Rating<br />BPI Analyst<br />BPI Analyst<br />Insulation<br />Windows<br />Solar<br />HVAC<br />Test-In<br />HERS Rating<br />Test-Out<br />HERS Rating<br />General Contractor<br />(Accredited After 6 Months)<br />Third Party HERS Rater <br />Work scope generated through software<br />Test-in / Test-out<br />Retrofitting<br />Specialty trade contractors<br />Home Performance Contractor <br />Any General Contractor must become accredited within 6 months of taking first incentive.<br />
  111. 111. BPI Accredited<br />Home Performance Contractor<br />Tier 1: Home Performance<br />Test-In<br />BPI Analyst<br />Test-Out<br />BPI Analyst<br />Home Performance Contractor<br />BPI Accredited<br />Performance-Based Solutions<br />BPI Accredited Contractor / Staff<br />Quality Assurance <br />
  112. 112. Pathways to Success<br />Insulation<br />Windows<br />Solar<br />HVAC<br />BPI Accredited<br />Home Performance Contractor<br />Test-In<br />BPI Analyst<br />Test-Out<br />BPI Analyst<br />Insulation<br />Windows<br />Solar<br />HVAC<br />Home Performance Contractor<br />BPI Accredited<br />General Contractor<br />(Accredited After 6 Months)<br />General Contractor<br />Performance<br />HERS Rating<br />HERS Rating<br />BPI Analyst<br />BPI Analyst<br />Test-In<br />HERS Rating<br />Test-Out<br />HERS Rating<br />List of Measures<br />Sunsets After 12 Months<br />Prescriptive<br />
  113. 113. The Time To Act Is Now!<br />Change the way we talk about efficiency from products to systems.<br />Start incentivizing our success in terms of results and measure performance.<br />Fix the imbalances in the market.<br />Set in place the foundation for a the American Home Performance Retrofitting Industry.<br />
  114. 114. A Foundation for Home Performance<br />Level the playing field<br />Make it easy to say yes<br />Drain the swamp<br />
  115. 115. Delivering On Our Promise<br />Sustainable Local JOBS<br />Cost Effective CARBON Abatement<br />Significant Homeowner SAVINGS<br />Effective Use of STIMULUS<br />Seize this opportunity to achieve <br />our climate and economic goals<br />
  116. 116. Delivering On Our PromiseSustainable Solutions to Achieve OurClimate and Economic Goals<br />For More Information: www.efficiencyfirst.org<br />

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