The Next Gold Rush

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Presentation about new energy professional opportunities, given by Michael Thompson at the Residential Retrofit Action Clinic on June 2, 2010.

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The Next Gold Rush

  1. 1. Michael Thompson California Building Performance Contractors Association Will Your Community Sit It Out?
  2. 2. Show Me the money!
  3. 3. “ Market Transformation” “ The evolution to a society and an economy that can be sustained indefinitely will be the greatest transition in the history of human civilization. The opportunities for leadership, for creativity and for business will be unprecedented.“
  4. 4. Saving energy in buildings is the low-hanging fruit of energy conservation efforts Residential Buildings 21% of U.S. Energy & 21% of California Greenhouse Gasses
  5. 5. We have had energy policy wrong for 40 years! <ul><ul><ul><li>The cheapest kilowatt or therm is the one you don’t use! </li></ul></ul></ul><ul><ul><ul><li>Energy policy priorities in terms of return on investment : </li></ul></ul></ul><ul><ul><ul><ul><li>1 – Conservation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2 – Efficiency </li></ul></ul></ul></ul><ul><ul><ul><ul><li>3 - Renewable Generation </li></ul></ul></ul></ul><ul><ul><ul><li>Examples: </li></ul></ul></ul><ul><ul><ul><ul><li>Photovoltaic Incentives (8 times less ROI than improving homes) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More Efficient HVAC systems </li></ul></ul></ul></ul>
  6. 6. California’s Big and Bold Strategies for Building New Construction 2030 - All commercial construction will be net zero energy 2020 - All new residential construction will be net zero energy
  7. 7. The “Big and Bold” Strategies for Existing Buildings (all 13,270,00) <ul><li>Energy consumption in existing homes will be reduced by: </li></ul><ul><ul><li>40% by 2020 </li></ul></ul><ul><ul><li>20% by 2015 </li></ul></ul><ul><ul><ul><li>20% reduction in all 13,270,000 homes </li></ul></ul></ul><ul><ul><ul><li>100% reduction in 2,654,000 homes </li></ul></ul></ul>53,000 per week 10,616 per week In FIVE years! - In 2009, New York State did 6,500 units - In 8 years, New York did 1%
  8. 8. Major Issues <ul><li>How to improve existing buildings? </li></ul><ul><li>How to pay for the improvements? </li></ul><ul><li>How to take the program to a </li></ul><ul><li> mass market? </li></ul>
  9. 9. How to Pay for Improvements? <ul><ul><li>CPUC mandated distribution of “public goods funds” through utility incentives </li></ul></ul><ul><ul><ul><li>$100m plus for home performance upgrades over 2 years </li></ul></ul></ul>
  10. 10. ARRA Stimulus Funds <ul><li>$767m - DOE energy efficiency funding targeted specifically for CA </li></ul><ul><li>$75m - California green jobs training program </li></ul><ul><li>$4.86b - Nationally, HUD has available for promoting energy efficiency and creating green jobs </li></ul>
  11. 11. Other Sources of Funding <ul><ul><li>$6b - Home Star Federal Program </li></ul></ul><ul><li>$???b - AB 811 (provides funding mechanism) </li></ul>
  12. 12. Programs for Taking Energy Conservation to the Mass Market <ul><li>The Title 24 Energy Code Industry </li></ul><ul><ul><li>Slowly ratcheting up building codes based on software modeling </li></ul></ul><ul><ul><li>Private inspectors (HERS Raters) and other new types of energy auditors </li></ul></ul><ul><li>Incentives for Incremental Improvements </li></ul><ul><ul><li>HVAC tune-ups </li></ul></ul><ul><ul><li>Duct Sealing </li></ul></ul><ul><li>HERS II </li></ul><ul><ul><li>Whole-house, system-based approach </li></ul></ul><ul><ul><li>Energy audits on individual homes </li></ul></ul><ul><ul><li>Projections based on software modeling </li></ul></ul><ul><li>Performance-based Building Remediation </li></ul><ul><ul><li>Work scope based on actual energy use and physical testing </li></ul></ul><ul><ul><li>Results judged by actual measured energy savings in each home </li></ul></ul><ul><ul><li>Demand/Response technology </li></ul></ul>
  13. 13. HERS II Audit Certificate
  14. 14. Opportunities The CEC’s New Energy Professionals <ul><li>California Home Energy Inspector </li></ul><ul><li>California Home Energy Analyst </li></ul><ul><li>California Field Verification and Diagnostic Testing Rater </li></ul><ul><li>California Whole-house Home Energy Rater </li></ul><ul><li>Building Performance Contractor </li></ul><ul><li>Check www.cbpca.org , HERS Providership page, Getting Started </li></ul>
  15. 15. What Business Models Work? <ul><li>Conventional HERS raters </li></ul><ul><li>HERS II raters </li></ul><ul><li>TPQCP raters </li></ul><ul><li>Home performance contractors </li></ul><ul><li>Brokers for home performance services </li></ul><ul><li>Energy consultants </li></ul><ul><li>Trainers </li></ul><ul><li>A Combination of the above? </li></ul>The CBPCA is dedicated to developing opportunities for energy efficiency professionals
  16. 16. Opportunities for Community Officials & Activists: <ul><li>1. Educate government and citizenry about the fundamental priorities in reducing energy use: </li></ul><ul><ul><li>Conservation </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Renewable generation </li></ul></ul>2. Spearhead a joint committee to go after stimulus funds for training home performance contractors and workers A.S.A.P. 3. Join a AB 811 regional district 4. Set up an outreach center to educate local residents about opportunities and incentives for energy conservation
  17. 17. Radical Opportunities: <ul><li>6. Use performance-based energy requirements to raise County building standards to match Big and Bold strategy targets. Challenge local builders ( use the market system ) to figure out how to meet the goals </li></ul>5. Change the mandate for the County Building Department. Make them responsible for meeting State energy conservation goals 7. Create local incentives for conservation - a local carbon tax that offsets property tax dollar–for-dollar
  18. 18. Thank you!

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