1 NORTHWEST ENERGY EFFICIENCY ALLIANCE 2015 Operations Plan Efficient Homes (NWESH)/Next Step Home

2 Efficient Homes Overview – Current state  Launched Quality Oversight (QO) for Providers to ensure all requirements for NWESH are met.  Performance Path became the sole method for certifying NWESH after Prescriptive Builder Option Packages (BOPs) expired on 7/1/2014.  Identified Advanced Energy to take over NW HVAC oversight for NWESH and began transition planning.  Re-engaged with the EPA to define the national oversight role and timeline for transition.

3 Next Step Home Overview – Current state  Recruited 30 additional Pilot projects, ensuring regional, builders, and home spec diversity.  Analyzed 12 months performance data from first 12 Pilot homes.  Completed project reports that summarize; builder challenges and best practice, homeowner/builder interviews, cost and performance data.  Held kick-off meeting with RTF to begin exploring an energy savings methodology based on performance ratings.

Key Focus Areas Northwest ENEGY STAR Homes Key Focus  Complete NWESH transition to market by 2016  Solidify new construction infrastructure that supports NWESH, NSH, and other green building programs. Risks and Dependencies  National Oversight  Timelines  Alignment challenges  Builders drop NWESH due to increased cost/complexity

Key Focus Areas Next Step Home Key Focus  Continue to validate Next Step Home specification through Phase II Pilot Projects  Establish an RTF approved performance rating based energy savings methodology Risks and Dependencies  NSH specification fails to achieve estimated savings targets  Performance rating analysis  RTF scheduling and resources  Performance rating outputs are unacceptable

Near-term progress indicators Next Step Home  Complete 12 months data collection and analysis on 30+ projects to achieve savings estimates and establish best practice pathways (Phase II)  Create research plan and technical workgroup to inform performance based energy savings approach  Execute outreach plan to green building organizations for potential adoption of the NSH specification Northwest ENERGY STAR Homes  Align the NW performance path homes with National oversight  Identify and transition NWESH roles under EPA/RESNET/market partners  Communication plan to market partners  Develop NWESH spec for states that adopt 2012 IECC

ILC milestones Northwest ENERGY STAR Homes  None in 2015  Transition Complete – Q Next Step Home  None in 2015  Scale-Up Approval – Q2 2016

8 Dependencies & Interactions – Efficient Homes  EPA  Aligning specifications to leverage oversight, technical support and marketing  Agreement on roles and responsibilities in a transition plan Coordination Strategy  Monthly meetings to track process/change in market conditions  RESNET  Align NW certification/QA requirements  ‘Legal’ NW HERS scores Coordination Strategy  Continue participation on RESNET task force; quarterly check-in’s to monitor progress

9 Dependencies & Interactions – Efficient Homes  RTF  Timelines for new spec approvals Coordination Strategy  Continued communication with RTF subcommittee on spec changes  NWESH Participation  Builders remain engaged through NWESH  Provider/Rater/Verifier services are available throughout the region.  Leverage NWESH market partners to introduce NSH Coordination Strategy  Provide a level of market support including; technical assistance, training, market development, and marketing  Communicate program changes/opportunities regularly in monthly news letters, webinars, and call downs

10 Dependencies & Interactions – Next Step Home  RTF  Acceptance toward a new performance based savings methodology Coordination Strategy  Create a technical work group to inform and conduct research plan  Utilities  Informing implementation plan and offering incentives  Provider/Rater/Verifier services are available throughout the region. Coordination Strategy  Monthly Work Group meetings  Utility visits

11 Dependencies & Interactions – Next Step Home  Green Building Programs  Adopting NSH specification Coordination Strategy  Outreach plan to engage green building programs and work towards specification alignment  Leveraging NEEA’s new construction infrastructure  Identifying data needs  Leveraging NWESH relationships with market partners  Building training curriculums to deliver through market based organizations Coordination Strategy  Strengthen existing relationships with NWESH partners  Solidify new construction infrastructure to support NWESH and NSH

12 Challenges, Major risks & Contingencies  Builders drop NWESH due to increased certification costs and requirements Response Plan:  Increase builder flexibility in meeting spec  Provide Verifiers/Raters assistance to establish cost effective best practice  EPA does not provide technical support for NW specs Response Plan:  NEEA continues minimal investment to provide technical support  Work with Providers through QO process to identify common pain points for Verifiers/Raters; enable Providers to find resolutions

13 Challenges, Major risks & Contingencies  Next Step Pilot Homes do not produce expected savings Response Plan:  Revise specifications and identify alternate efficiency measures  Add additional Pilot homes with different mix of measures; continue energy monitoring to assess performance  RTF will not accept performance based savings methodology Response Plan:  NEEA prepares measure packages within the NSH spec for RTF savings approval  ??

14 Questions Thank you Neil Grigsby