Residential Advisory Committee Meeting February 3, 2011

Agenda Desired Outcomes: 10:00 Welcome 10:15 LUMEN Update 10:30 Guiding Principals & 2011 Goal 11:30 Retrofit: Current State 12:45 Lunch 1:15 Retrofit: Discussion 4:00 Adjourn Desired Outcomes: ID our 2011 Goal and Guiding Principles Gain greater understanding of what is going on now in retrofit - regionally & nationally Explore what can make your programs perform better Feel inspired about uncovering new potential Feel more cohesive as a committee

LUMEN Update (Lighting Understanding for a More Efficient Nation) New coalition. First meeting Feb 1, 2011. Purpose: To provide education and awareness about federal requirements for energy-efficient light bulbs post EISA. Opportunity to participate in a committee and/or fund: Retail Education Mass Media Education PR Task Force Media Relations War Room Strategy and Response Action: Anyone interested in participating in one of the committees or can offer a media spokesperson?

Guiding Principles & 2011 Goal

Guiding Principles Each group develops 2 guiding principles Less than 9 words per principle

2011 Goal Think about what is happening in the region now that we want to be a part of or shape What have we done in the past? Agree on 5 year business plan Develop integrated operations plan What would give you a sense of purpose and accomplishment, and fits the needs of the region for the future?

Retrofit Discussion: Current State

The 6th Power Plan Residential Sector Resources Tom Eckman Manager, Conservation Resources Northwest Power and Conservation Council NEEA Residential Advisory Committee February 3, 2011

Sixth Plan Resource Portfolio* *Expected Value Build Out. Actual build out schedule depends on future conditions slide 9 9

6th Plan Conservation Goals 1200 aMW Over Five Years

6th Plan “Technically Achievable” Conservation Potential by Sector slide 11

Residential - What’s Covered Water Heating High Efficiency Tanks (EF95 – Federal Std in 4/2015 for <56 gal tanks) Heat Pump and Solar Water Heaters (EF2.0 – Federal Std 4/2015 for >55 gal tanks) 2.0 GPM Showerheads (DOE no longer preempts adoption in state codes) GFX Wastewater Heat Recovery Appliances and Lighting Clothes Washers (New fed Std due 3/2011) Clothes Dryers (New Fed Std & Test Procedure due 3/2011) Dishwashers (New Fed Std & Test Procedure due 1/2015) Refrigerators (New Fed Std & Test Procedure due – Imminent!) Freezers (New Fed Std & Test Procedure due – Imminent!) Microwaves & Ovens (New Fed Std for Standby/off-mode due 6/2011) Solar Photovoltaic Systems (On site use) Consumer Electronics Televisions (New Fed Std & Test Procedure due 12/2012) Set Top Boxes (Cable, Satellite, DVR) (Fed decision to cover due 2/2011) Desktop Computers Computer Monitors slide 12

Residential - What’s Covered (cont) Space Conditioning Thermal Shell Improvements (e.g. insulation, high efficiency windows) Duct Sealing Heating System Conversions to Air-Source Heat Pumps, including “ductless” systems Heat Pump System Efficiency Upgrades (New Fed Std due 6/2011) Central Air Conditioning Efficiency Upgrades (New Fed Std due 6/2011) Room/Window Air Conditioning Efficiency Upgrades ((New Fed Std due 6/2011) Heating and Air Condition System “Commissioning” slide 13

6th Plan Residential Consumer Electronics Supply Curve slide 14

6th Plan Residential Water Heating, Lighting and Appliance Supply Curve slide 15

6th Plan Residential Space Conditioning Supply Curve slide 16

Residential Sector – The “Big Measures” slide 17

Residential Retrofit Measures Energy Star Lighting Non-EISA (Specialty) ~ 200 aMW EISA Covered Products ~ 50 to 60 aMW Showerhead Replacement (< 2 GPM) ~ 85 aMW Existing SF Ductless HP ~ 195 aMW Existing SF, MF & MH Weatherization ~ 290 aMW Solar Residential Water Heater (not cost-effective) Customer-side Solar PV (not cost-effective) slide 18

Residential Space Conditioning Retrofit Measures slide 19

Achievable Potential (aMW) Prime Window Replacements Are Largest Single Retrofit Weatherization Measure* Dwelling Type Achievable Potential (aMW) Single Family 90 Multifamily 50 Manufactured Homes 30 Total 170 *Measure includes Class 30 or better replacements of single or double pane metal framed prime windows. slide 20

PNW Regional Conservation Achievements and Goals slide 21

1978 – 2009 Conservation Savings slide 22

Accomplishing the 6th Plan’s Conservation Goal Will “Stretch” the Columbia River We Can Sustain A Legacy Over the next 20 years we can stretch the output of all hydroelectric resources in the PNW by 50% Chief Joseph McNary Grand Coulee John Day Bonneville . . .and reduced the power systems carbon-footprint 15% below 1990 levels Rocky Reach The Dalles

slide 24

Conservation – Cheap, But Worth It? Any Questions? slide 25

Energy Trust of Oregon: Energy Performance Scores

Energy Performance Score Pilot for Existing Homes NEEA February 3, 2011

The Energy Performance Score An asset-based performance metric A Miles-per-gallon (MPG) for homes tool for strategic engagement of customers and markets but only if it can be a reliable accepted effective tool in the field used as a resource to give visibility and awareness to consumers on the performance of their home’s shell and mechanical systems under standard operating conditions

The Energy Performance Score is not a certification a program a guarantee a cash incentive an alternative to Home Performance with ENERGY STAR® The Energy Performance Score is not a certification, a program, a guarantee or a cash incentive. Nor is it an alternative to certification programs.

Advantages of the EPS Helps homeowners compare their energy usage with homes of a similar size to theirs Provides a target score that homeowners can achieve with recommended upgrades Shows energy use on a scale     

How is EPS Calculated? Data Inputs Home size Insulation levels Air leakage Duct leakage Heating and cooling systems Several other factors * Energy modeling assumes average operating conditions. Actual use may vary on number of occupants and behaviors. One of the most valuable features of the EPS is that it allows homeowners to see on this scale how their home compares to an average Oregon home of similar size and heating fuel.

Phase 1 Report http://energytrust.org/library/ reports/EPS_2008_Pilot_Report.pdf 32

Library/Reports – Search by Existing Homes

Findings from Initial EPS Research Complicated models were no better at forecasting energy savings than less complex models. The best performing non-complex model had an apparent error band of plus or minus 30%. Comparisons to billing data are not the accurate test of a model’s forecasting efficacy, due to homeowner behavior. A set of enhancements to the less-complex energy models might improve accuracy. More tests of improved models in comparison to a standardized baseline (non-bill) should be conducted.

Next Phase EPS with DOE’s HES

Goals of the EPS Pilot Does an EPS motivate a customer to act, in terms of sooner, deeper or both? Which information is most useful Score or no score, energy usage & savings representation How do consumers relate carbon footprint information What are the customers’ visual preferences Does an EPS have efficacy in: Directing customers to do the right sorts of things Assigning a comparative ranking without diagnostic testing Predicting energy saved without diagnostic testing Which of three models perform better (HES, SIMPLE and RHA2) What is ease of use in the field for the three models

EPS Next Steps Continued vetting of visual score for consumer preferences on look, feel & content Further analytic review of alternative approaches SIMPLE 2.0 RealHomeAnalyzer2 (RHA2) DOE’s Home Energy Score (HES) Impact of home performance scores on influencing home improvement follow through rates

Pilot Overview 400 gas homes in total will get an assessment with a score 200 Homes provided DOE’s HES (Score & Recommendations) 200 with RealHomeAnalyzer 2.0 EPS (Score & Recommendations) All homes will be modeled with SIMPLE as well Standard HERs will be used as benchmark for follow through rates Feb launch, March-April analysis (consumer surveys 1 week & 6 months) BPI certified technicians as Energy Advisors (5 dedicated) For this effort Advisors are from the PMC* Training (HES, RHA, Call Center, Contractors) Homes will be randomly assigned from the requests for a Home Energy Review (free checklist audit) *PMC: Program Management Contractor Conservation Services Group

Overview (Continued) Home energy score provided to homeowner on site Recommendations sheet Packet of materials List of Trade Allies List of Incentives Measure fact sheets based on recommended measures Energy Advisor business cards Follow-up with 2 surveys (1 week & 6 months) Not doing a blower door test Leakage will be assigned based on advisors assessment of multiple characteristics of home including visual inspection (values are based on multiple historic leakage rates, home size, foundation, age, number of stories)

Energy Performance Score

Recommendations Report

US Department of Energy’s Home Energy Score (HES) 42

Energy Trust is One of Ten Home Energy Score (HES) Pilots under DOE Allegheny County Pensylvania, Efficiency PA Cape Cod and Martha's Vineyard, Cape Light Compact Colorado Mountain Region, Energy Smart Program Greater Charlottesville area, Virginia, Local Energy Alliance Program Indiana, Hoosier Energy Minnesota, Center for Energy & Environment Omaha and Lincoln Nebraska, Cities of Omaha and Lincoln Portland Oregon, Energy Trust of Oregon South Carolina, Electric Cooperatives of South Carolina Texas, United Cooperative Services www.homeenergyscore.gov

Home Energy Score (HES) An asset-based performance metric is produced with US DOE’s Home Energy Saver (HES) Pro Scale from 1 to 10, with current score and score after upgrades, along with estimated annual savings Comparison home score is from national RECs data Includes total source energy use (MBTUs/year) and home size Includes Tips to Save Energy at Home, Home Upgrade Recommendations, and Summary Page of Inputs Pilots to provide recommendations reports to DOE by June 2011

Home Energy Score Label INSERT PICTURE OF LABEL

Why an HES Pilot Also? Comparing multiple modeling tools, of which DOE’s HES is one Comparing consumer response to different visual representations Opportunity to provide recommendations to DOE to improve HES

Timeline Launch in February 2011 All homes scored by early April Preliminary evaluation in early summer 2011 Contractor roll-out late 2011/early 2012 contractor engagement starts in January depends on results of tool comparison and preliminary follow through rates

Pilot process

Questions Customer follow-through rates on measure installation Pull project data from our efficiency project database at the following intervals (1 month, 3 months, 6 months & 1 year) Compare to standard Home Energy Review follow-through rates Data analysis & metric comparisons Relative accuracy of HES, SIMPLE and RHA2 Comparison to each other and other models (SIMPLE) Use of billing data Actual blower door comparisons on sub sample Look at different benchmarks (SEEM data) vs (RECs)

Questions (Continued) Customer feedback surveys (multiple questions) Participants will be surveyed electronically (1 week & 6 months) Actions taken (behavioral change, small measures (CFLs)) Satisfaction & value of Energy Advisor in the process Visual score inquiry (scale, energy data representation) Program delivery efficiencies & customer information Tablets and printers on site Scripted conversations for message consistency Automatic randomized site selection and advisor assignment Timing of activities (audit time, scheduling, printing etc) Demographics (more detail on occupants)

Contacts Diane Ferington Energy Trust of Oregon Residential Sector Lead Diane.Ferington@energytrust.org 503.445.7621 Kendall Youngblood Residential Sector Manager Kendall.Youngblood@energytrust.org 503.445.7622 PMC Leads @ CSG Stephanie Vasquez Kyle Barton New Initiatives Program Manager Program Analyst EPS Field Lead Stephanie.Vasquez@csgrp.com Kyle.Barton@csgrp.com 503.523.4836 503.307.3710

Community Retrofit Program Residential Advisory Committee Anne Brink February 3, 2011

The Clean Energy Works - Oregon A financing solution - Local lenders offer competitive loans that can be paid back on utility bills, where energy savings help cover loan amounts. Simplifies the transformation of older homes into energy efficient and livable homes by offering bundled energy remodel services in collaboration with Energy Trust of Oregon, utilities, financial institutions, local communities and contractors A non-profit committed to positive environmental and social change that reduces a community’s environmental impact and creates jobs with family-supporting wages, benefits and career pathways.

Clean Energy Works Goals 6,000 residential and small business energy remodels by the end of 2013 Leveraging $100 million in private capital and fulfilling the terms of a 2010 investment by US Dept. of Energy High road agreement Create lasting green jobs

Clean Energy Works Provides Centralized branding and marketing services Education workshops for homeowners Online customer application Consumer rebates – partnered w/ETO

Clean Energy Works Provides Customer support provided by highly-trained Energy Advisors Highest quality contractors and building science professionals 100% quality control verification Up to 100% financing with attractive terms, including utility bill repayment

Eligible Improvements Weatherization Insulation: wall, attic, floor Air sealing: windows, doors, attic, basement Duct sealing Equipment Space heating: furnace and heat pump Water heaters: tank and tankless

Clean Energy Works Process Online application Credit Screen (underwriting) Home Performance Assessment Bid Proposal Loan signing Construction and QC On-bill Repayment

Financing solution Low Touch Underwriting Non‐Traditional: Utility payment history, FICO >590 IT Platform: Linked to utilities and loan management Product Specifications Rate: 5.99% (3.99% for <250% Federal Poverty) Term: 20 year amortized Security: blind subordinate lien on property Servicing: on‐bill repayment (heating utility) Risk: cash funded loan loss reserve = 10% loans Transferable: at time of home sale (processing fee)

Results to date Program Successes Average energy savings: $500/year Carbon reductions: 2.7 metric tons per home Median project costs: $12,600 Projects funded: $5,750,000 Loans signed:461 Homes Retrofitted: 415 Median loan payment: $76 per month Overall customer satisfaction rating: 93%

Community Power Works - Seattle a neighborhood based community retrofit program that will achieve deep energy savings and create lasting green jobs.

Community Power Works Goals Achieve energy and carbon savings – 15% savings Create lasting green jobs Engage the entire community Successfully retrofit at least 2,000 homes Implement the high road agreement Deliver cost-effective energy efficiency

Eligible Improvements Modeling 15% improvement Energy Performance Scores

Financing solution Low Touch Underwriting Non‐Traditional: Utility payment history, FICO >590 IT Platform: Linked to utilities and loan management Product Specifications Rate: 5.99% (3.99% for <250% Federal Poverty) Term: 20 year amortized Security: blind subordinate lien on property Servicing: on‐bill repayment (heating utility) Risk: cash funded loan loss reserve = 10% loans Transferable: at time of home sale (processing fee)

Community Power Works - Process Online application Credit Screen (underwriting) Home Performance Assessment Bid Proposal Loan signing Construction and QC On-bill Repayment

Key differences Community Power Works Targeted at low income Energy Modeling w/Performance Score Auditors employed by the program Clean Energy Works Broader demographic target Prescriptive approach Independent auditors providing the home energy audits

LUNCH

Retrofit Discussion: Exploration of opportunities

Thank you!