Building Retrofit Industry and Market (BRIM) Market Scan Workplan April 12, 2011 Prepared by:

This Research is Phase I of a Three Phase Process Phase I – Synthesis of existing research across all building segments. Phase II – Deep dive into one building segment to develop a collaborative market-building investment strategy. Phase III – Convening of funders, government and private players to build consensus around priority market development investments.

Table of Contents – Phase I Key Objectives and Deliverables Process Overview “Straw Man” Building Retrofit Taxonomy Market Scan Design Framework Potential Data and Analysis 2

Key Objectives and Deliverables Process Straw Man Taxonomy Market Scan Design Framework Potential Data and Analysis To support BRIM market development investment planning by: Establishing a building retrofit market taxonomy Creating a framework for comparing the market conditions and potential of each segment Recommending priority segments and scope of further study This market scan will answer the following questions: What are the different market segments; how are they defined and what are their energy efficiency characteristics? How large is each market segment? What is the potential for impact in each market segment? Who are the industry participants in each market segment? What are the investment opportunities in each market segment? 3

Process Overview 4 Step 1 Market taxonomy and scan design Step 2 Objectives and Deliverables Process Straw Man Taxonomy Market Scan Design Framework Potential Data and Analysis Key activities Deliverables Team Timeline Conduct preliminary research to create draft market taxonomy for BRIM and market scan design Draft taxonomy and scan design, including market characteristics, potential impacts, and investment types available OHcp Weeks 1-2 Step 1 Market taxonomy and scan design Review draft taxonomy and scan design with team Revised taxonomy and scan design OHcp/INC/JR End of Week 2 Conduct 1-3 expert interviews Updated taxonomy and scan design Index of secondary sources for each market segment Preliminary list of potential expert interviewees for each market segment OHcp Weeks 2-3 Present and discuss final taxonomy and scan design with client Final taxonomy and scan design OHcp/INC/JR Week 3 Draft deliverables format and templates Final presentation template (PPT) Final report template (10-15 pp in Word) OHcp Weeks 3-4 Step 2 Complete research and draft sample segment analysis (for up to 3 segments) Sample segment analysis (PPT) OHcp Weeks 3-5 Preliminary research and analysis Review sample segment analysis with team Revised sample segment analysis (PPT) OHcp/INC/JR End of Week 5 Conduct expert interviews to test and deepen segment analysis (5 to 7 interviews) Updated sample segment analysis OHcp Weeks 6-7 Review sample segment analysis with client Iterated sample segment analysis (PPT) OHcp/INC/JR Week 8 Compete research and draft analysis for all market segments Draft market scan presentation (PPT) OHcp Weeks 6-9 Step 3 Review draft analysis for all market segments with team Revised market scan presentation (PPT) OHcp/INC/JR Weeks 6-10 Final market scan Deliver market scan presentation to client Market scan presentation (PPT) OHcp/INC/JR End of Week 10 Finalize market scan presentation Final market scan presentation (PPT) OHcp TBD Draft market scan report Final market scan report (Word) OHcp TBD Draft market scan executive summary Final market scan executive summary (Word) INC/JR TBD Complete and submit final deliverable to client Final market scan deliverables (PPT, Word) OHcp/INC/JR TBD 4

“Straw Man” Building Retrofit Market Taxonomy Objectives and Deliverables Process Straw Man Taxonomy Market Scan Design Framework Potential Data and Analysis Category: Based on general activities that take place in the building. Residential Commercial & Industrial (C&I) Institutional Based on specific activities that take place in the building and the size of enclosed space available for occupants/tenants in the building (by number of units or square footage). Segment: Single family Multi-unit (small, 2-4 units) Multifamily (mid-sized, 5-49 units) Multifamily (large, >50 units) Small Retail/ Office Large Retail/ Office Small Industrial Large Industrial Government Healthcare Universities Schools Type: Based on type of occupants/tenants that reside/operate in the building. Illustrative examples Market-rate housing Restaurant Food Processing Federal Ambulatory Residential Public Affordable housing Grocery Manufacturing State Long-term care Laboratory Private Public housing Dry Cleaner/ Laundry Energy generation Local Inpatient Academic/ Classroom Charter Professional Office Storage facility Emergency Adminis-trative 5 5

Market Scan Design Framework Objectives and Deliverables Process Straw Man Taxonomy Market Scan Design Framework Potential Data and Analysis Key questions Core elements of analysis How is the market segment defined and what are its energy efficiency characteristics? Develop summary description of segment that explains the core energy efficiency characteristics Define the relevant market sizing criteria (i.e., age, total energy use/relative share of building energy consumption across segments) Research current market size estimates and growth projections How large is this market segment? What is the potential for impact in this market segment? Specify the types and drivers of economic/financial, social and environmental impact Determine average returns on investment across impact categories Who are the industry participants in this market segment? Identify the types and subtypes of consumers, producers and intermediaries in this segment Characterize their typical roles, activities and interrelationships Describe the range of market development opportunity types (i.e., knowledge of customers, marketing, policy, information, asset valuation, financing, attribute markets, talent supply chain, contractors, information technology, input costs, building technology) Research existing funders, investment trends, and activities What are the investment opportunities in this market segment?

Potential Data and Analysis Objectives and Deliverables Process Straw Man Taxonomy Market Scan Design Framework Potential Data and Analysis Core elements of analysis Associated key metrics Develop summary description of segment that explains the core energy efficiency characteristics Building size (sq. ft. and/or number of units) Typical building structures and systems Occupant/user types Governing authority (public/private) Typical energy intensity (MBtu/$) Define the relevant market sizing criteria (i.e., age, total energy use/relative share of building energy consumption across segments) Research current market size estimates and growth projections Age range for prime building retrofit targets Total number of prime building retrofit targets (sq. ft. and/or number of units) Total energy use and relative share of building energy consumption (MBtu) If applicable, other accepted criteria for determining prime retrofit targets Specify the types and drivers of economic/financial, social and environmental impact Determine average returns on investment across impact categories Economic/financial impact metrics Average retrofit investment required Average annual/lifecycle energy cost savings Average ROI per $X investment Social impact metrics Average number of direct and indirect jobs created/retained per $X investment Types of jobs created/retained by investment Environmental impact metrics Average annual energy savings (MBtu., etc.) Average GHG emissions reduction (Metric tons, etc.) Average reductions in other pollutants Identify the types and subtypes of consumers, producers and intermediaries in this segment Characterize their typical roles, activities and interrelationships Industry participant types Owners/principals Property managers (syndicates, portfolio managers, single-property owners) Contractors (construction managers, GCs, trade) Funders/lenders/investors (primary/secondary) Energy producers 3rd party retrofit program administrators Describe the range of market development opportunity types (i.e., knowledge of customers, marketing, policy, information, asset valuation, financing, attribute markets, talent supply chain, contractors, information technology, input costs, building technology) Research existing funders, investment trends, and activities Investment metrics $X of investment by funder Number of projects and $X investments by development opportunity type Definition Size Impact Participants Opportunities 7