New Homes Work Group March Meeting 3/20/2017 New Homes Work Group March Meeting Neil Grigsby, NEEA

Agenda Local Government Partnerships Performance Path Program Vasudha Lathey/Matt Christie - TRC Performance Path Program Overview Modeling Raters/Verifiers Axis Timelines

Local Government Partnerships

Home Certification Programs in the Northwest

Benefits of Partnerships UTILITIES LOCAL GOVERNMENTS PROGRAMS Share resources to attain common goals Address customer demands Engage community Maximize energy efficiency resources Expand program deployment options Share resources to attain common goals Accelerate sustainability goal adoption Increase revenue and asset values Create jobs Engage community Share resources to attain common goals Increase program adoption Gain regulatory authority and public visibility Existing channels and public touchpoints Barriers include consensus building, time commitment and resource distributions

Nationwide Partnerships Northwest Energy Efficiency Alliance Nationwide Partnerships 104 known program-government partnerships Preference for programs that are Holistic Zero Net Energy oriented Innovation to Action

Incentive Categories Developmental Incentives Financial Incentives Other Incentives

Benefits and Challenges for Each Incentive Type ADVANTAGES DISADVANTAGES Financial Offset “green premiums” Identify new funding source Developmental No upfront capital for implementers Increase developer profits Develop new internal review process Recruit additional staff Marketing and Technical Assistance Reduce program adoption barriers

Partnership Case Studies EXPEDITED PERMITS DENSITY BONUS TAX CREDIT

Lessons Learned from Case Studies Find a dedicated Partnership Lead Anticipate slow development Seek community and stakeholder support Design partnerships and incentives according to long term goals and objectives Identify shared roles and responsibilities across programs and governments Be flexible and open to changes

Key Partnership Stakeholders Partnership Lead Serves as the overall champion for the partnership. Local Governments Department of Energy Department of Environment/Sustainability Department of Waste Management Planning/Building Department Department of Finance Mayor /Governor’s Office Communication Department City Legislative Office/ City Council Market Representatives Utilities Building Owners and Tenants Building Design Team Building Development Team Home Certification Program Administrators

Step-By-Step Approach to Partnerships

2017 Program Pilots NEEA goal: Facilitate three pilot partnerships between Northwest local governments and programs Top down versus bottom up approach Demonstrate diverse partnership models Stakeholders: utility, programs, public-private Market sectors: affordable and market rate Scale: small to large sized governments

Utility Feedback First steps to establish pilot partnerships Assess government candidates for pilot Create home certification program shortlist NEEA wants your feedback: Which cities might be motivated to implement partnerships, but haven’t yet? Which cities have strong internal advocates for green building?

Single Family New Construction Performance Path

Performance Path Overview Eliminates prescriptive path maintenance Allows greater program design flexibility Allows builder flexibility Increases potential savings opportunities Leverages home certification programs in the region

Performance Path Overview

Energy Modeling

Northwest Energy Efficiency Alliance REM/rate Widespread market adoption RTF/NEEA analysis established modeling protocols and guidelines The role of the Home Energy Rater The modeling software currently used by ENERGY STAR Homes, HERS, Built Green, and more. RTF/NEEA technical analysis established modeling protocols and guidelines that limit variability and uncertainty. NEEA will leverage the role of the “Rater” to complete modeling with Builders. Innovation to Action

Home Energy Raters/Verifiers

The Role of the Rater Options to become a Rater: 1. RESNET HERS accreditation, or 2. NEEA Rater equivalent and…… REM/rate + NW Modeling Protocols (utilities may add requirements at their discretion)

AXIS Database

Northwest Energy Efficiency Alliance AXIS Database Licensed through NEEA with Pivotal Energy Solutions Introduced in 2013 to support NWESH and Energy Trust EPS Provides integrated savings calculations REM/rate + UES Measures Axis translates how a home is being built: data that a Rater collects on-site, to utility reports that highlight energy savings and key features of a home NEEA envisions Axis becoming a regional data hub for all new construction homes that participate in a home certification program this will help inform regional savings, code proposals, and provide greater insight to building trends throughout the NW. Innovation to Action

Northwest Energy Efficiency Alliance AXIS Reports Utility Branding Custom utility reports BPA calculator reports NEEA is currently developing a utility orientation training an overview of using Axis with the new BPA performance path program. These training will be offered in two live webinars in April. It will also be recorded and added to BBNW as a utility resource. Utilities who will be using Axis will be given a user name and password to view projects in their territory Utilities will be able to generate various reports in the Axis database, including one for BPA reporting purposes. A template for a project report will also be available, where a utility can add their logo and customize it for a projects (KWH saved, key features of home, how much $ saved, etc). This could possibly be used as a marketing piece for builders Innovation to Action

Northwest Energy Efficiency Alliance QA Innovation to Action

Quality Assurance

Implementation Timeline

Performance Path Development Timeline: December 2016 RTF approval of the NW Modeling Protocol milestone: Q1 2017 Milestone: NEEA program planning AXIS database development Training/Overview development Utility “Playbook” Q2 2017 Milestone: BPA Implementation Manual update Finalize Trainings/Playbook Rater/Utility Trainings and outreach Q3 – Q4 2017 Milestone: Rater/Utility outreach BBNW development QA

Northwest Energy Efficiency Alliance Upcoming Trainings BPA Brown Bag – 4/19 Utility AXIS Training – May Rater AXIS Training – May Modeling Guidelines Training – May Efficiency Exchange - May BBNW – host Utility playbook We will offer two live webinars of these trainings – record and post on BBNW LMS for Rater onboarding Innovation to Action

Utility Feedback

Utilities: Things to Consider Northwest Energy Efficiency Alliance Utilities: Things to Consider Participation Agreements QA AXIS reports Communication to Raters/Builders Participation Agreements – Raters, Builders to agree to any legal terms and conditions of participating in a utility program? Use in other programs? QA – NEEA will provide what we consider a base amount for the region to launch this program; will utilities provide more? AXIS reports – what are key data points you need? BPA report will automatically generate what you’ll need to submit to the BPA….what else? Communication to Raters/Builders – do we send out a blast announcement to all Raters and builders in the region announcing the program and directing them to contract their local utilities to find out if there’s a program? Or take a more targeted approach locally when utilities launch programs? Innovation to Action

notes Eric – will Axis produce a BPA report ? Eric – timelines for implementation Starting immediately, short list of partners, stakeholders, etc. process will take awhile, Eric- start with large communities first? Yes, opportunity to offer other incentives like density bonus and expedited permits, but also want to test smaller and rural markets; Kevin – is it just cities? Or can it be counties? Yes, broader construct then cities – counties and master developments in communities David – how do we get in touch with everyone? Contact Neil, or Matt and Vasuduh directly Eric – will Axis produce a BPA report ? Kevin – Axis will produce a BPA reporting that can be delivered to, BPA and a separate report for utility internal purposes. Eric – is NEEA backing out, and EPA taking over for ENERGY STAR ? IT’s confusing for Raters; Is NEEA providing QA? PSE looking into a Title 24 software for energy savings and code compliance? Are you looking to do that? What’s a participation Agreement, Benton doesn’t require any. Make it as easy as possible Kevin – Can utilities pay incentives through Axis? Clinton repsonses Kevin – can you capture W9 and legal agreement for tax/incentive reporting? Yes, we can do it but need to talk more about what your needs are?

Northwest Energy Efficiency Alliance Thank you! Vasudha Lathey - TRC VLathey@trcsolutions.com Matt Christie - TRC mchristie@trcsolutions.com Neil Grigsby ngrigsby@neea.org Mention an April work group meeting to go over market research findings for NSH and MH Innovation to Action