1. Residential Retrofit & ARRA Ward Lenz, Director, Energy Office Energy Division – NC Department of Commerce 2010 NC Housing Finance Agency Conference September 17, 2010

2. Big Changes in the Last Year… Moved SEO from Administration to Commerce Energy Division Transfer of Weatherization Assistance Program from DHHS to Commerce Energy Division Staff increase from 20 to more than 40 (and still hiring) More levels of bureaucracy and oversight New management

3. …Same Old Goal To ensure a sustainable energy future for the citizens of North Carolina. Objectives: – Advance energy efficiency – Encourage growth and development in the state’s energy economy – Make NC a leader in the creation of green jobs Image: Center for American Progress. “Efficiency Works: Creating Good Jobs and New Markets Through Energy Efficiency.” September 2010.

4. SEO Retrofit Programs Sponsored programs: – Builders of Hope – E-Conservation In-house programs: – Weatherization Assistance Program – Retrofit Initiative

5. Weatherization (Wx) Ten-fold increase in funding – FY 06/07/08: $12-million – FY 09/10/11: $131-million!!! Four-fold increase in number of homes being improved (3,000  14,000) – Increased average unit expenditure from $2,699 to $6,000 – Allows deeper retrofits resulting in even lower energy bills

6. Wx Objectives Health and Safety Building Durability Client Education and Comfort Energy Savings

7. Wx Progress to Date Houses improved – More than 5,000 Jobs created – Weatherization Assistance Program (Program administration and quality control) – Local agencies and installers Energy saved Average energy bill savings

8. Retrofit Initiative Economic development initiative to ensure retrofit market is self-sustaining after ARRA funding ends Started with an award from the National Governors’ Association Coordinates and leverages efforts from around the state, not just SEO run programs

9. Before After Goal: Transform the Market

10. How? Collaboration – Open strategic planning process with as many stakeholders as possible – Working groups to discuss specific issues – Focus on infrastructure Program Elements – Market Development – Business Development – Workforce Development – Quality Assurance

11. Market Development Will develop two new programs to supplement existing federal and utility incentive programs: – Existing Homes (Brand TBD, $7-million) Marketing and education/outreach, state-funded incentives, and contractor training – Loan Loss Reserve ($5-million) Encourage the financial industry to develop new loan products that make retrofits more affordable

12. Business Development Support and advance existing businesses in the retrofit sector – Retrain out-of-work new construction contractors on retrofit specific knowledge – Develop or modify tools to help new businesses enter the retrofit market

13. Workforce Development Create feeders that drive new professionals into well-defined career ladders Provide training and certification programs that develop workers on these career ladders and increase the level of knowledge across the industry

14. Quality Assurance Assure customer satisfaction Ensure all retrofit measures are installed properly Measure and verify energy savings Provide feedback for continuous improvement of all program areas

15. Retrofit Initiative Anticipated campaign launch: Dec 15 Expect to retrofit 3,000-homes in CY2011 Expect to train and place up to 1,000-persons in retrofit jobs Will work with third-party administrator to implement

16. Summary Build the market – Communications, financing Support the contractor base – Training, quality assurance Exit gracefully?