Reinventing Home Energy Audits and Auditors Wyoming Utility Efficiency Exchange October 3, 2008 Cheyenne, WY By: Ron Horstman

Present Definition Of An Energy Audit? An inspection, survey and analysis of energy flows in a building, process or system with the objective of understanding the energy dynamics of the system under study. Typically an energy audit is conducted to seek opportunities to reduce the amount of energy input into the system without negatively affecting the output(s). When the object of study is an occupied building then reducing energy consumption while maintaining or improving human comfort, health and safety are of primary concern. Beyond simply identifying the sources of energy use, an energy audit seeks to prioritize the energy uses according to the greatest to least cost effective opportunities for energy savings. This is the current definition of an energy audit. BUT – energy auditing is changing as we speak! While this definition is technically correct, I contend that this definition is no longer adequate. There are concerns in addition to energy that are being incorporated into the energy audit process. These concerns include climate change, national security, economic issues, and knowing your ecological footprint.

What Is An Energy Audit? Decision making tool Road map for energy related issues -I have done hundreds of audits and almost every entity requesting an audit has a unique concern they want the audit to address. -Clients want answers to their questions so they can make wise decisions – not just on energy but on environmental issues, economic issues, social issues, and political issues. -I have conducted an audit for several clients that already had an audit done but were not satisfied with the results. -A good audit will provide a road map to the client for several years. It will allow the client to prioritize their actions based on budget, payback, comfort, safety, or any other area of concern. -I have had clients call me several years after I conducted the audit to tell me that they had implemented 9 or 10 of the audit recommended measures, and to ask questions about the remaining items. In most cases the situation HAS changed. The rates have changed, and therefore the payback has changed. Not only have the rates changed, but the available technologies have also changed. This gives me the opportunity to revise the audit recommendations to a more appropriate course of action.

How Have Energy Audits Changed? Its not just about energy anymore Consumers want more information Integrating technologies is a science -It is not just about energy anymore – as I mentioned earlier, customers want information on a host of issues including the environment, the economy, politics, social issues, and integrating renewables. -Integrating technologies is a science today. Our homes and offices house a plethora of technologies that must be properly integrated and properly operated to get the desired results. -Many C&I buildings have energy management systems that are programmed to properly control all of these integrated systems. Our homes are becoming increasingly complex and will require software programs that make decisions that address TOU rates, demand charges, and the integation of renewables technologies. -

Four Main Areas Audits Address Health and safety of the occupants Building durability Comfort Energy efficiency. I have listed these 4 main areas in order of importance….. -health and safety should always be the first concern. An audit should only recommend measures that do not jeopardize the health and safety of the occupants. -building durability can be tied to health and safety, but it also has O&M concerns, budget concerns, and logistical concerns - if the business was force to move or vacate the premises. Audits today must consider sustainable and green building technologies and practices. -While comfort is 3rd on this list, do not underestimate the importance of comfort! Many customers request an audit to address one or more comfort issues. -And last but certainly not least is energy efficiency. Energy efficiency is the common thread to all of the above concerns, and it is often the area by which justification can be made for change.

Types of Home Energy Audits Do-it-yourself Energy Audits Online Energy Audits Walk-through Energy Audits Comprehensive Energy Audits Professional Energy Audits -There are several levels of energy audits available today…….determining which is most appropriate can be a series of progressive steps. -Do-it-yourself energy audits only apply to a small percentage of the population. Very few people have the technical knowledge needed to do it themselves. This type only requires an investment of time. -Online energy audits is the next step. This type of audit requires the user to input some data and then makes some generalizations regarding energy use base on building type and several other factors. Some accuracy is sacrificed to provide generalized solutions. It too only requires an investment of time. -The Walk-through energy audit is the next step up and requires some level of expertise. It does identify some applicable energy efficiency measures but does not provide numbers on the cost to implement, the savings per year and the payback. Many utilities offer this type of audit with suggested options if more information is desired. -Comprehensive energy audits go into more detail and generally provide written documentation on recommended energy efficiency measures. A comprehensive audit only uses information and data specific to the customer and generally provides cost, savings, and payback numbers associated with each recommended measure. -A professional energy audit is the highest level provided and is recommended for serious customers, customers with large energy use histories, and customers with energy related issues they want addressed. -Having said all of this, even professional energy auditing has changed over the last several years. Professionals are being asked to provide information in addition to the standard audit results such as economic impacts, emission reductions, and ecological footprint calculations and recommendations.

Who Needs An Energy Audit? You do! Everyone uses energy…….. Even energy auditors need an audit…….. A good energy auditor could be called a house doctor….. He can diagnose problems and provide solutions.

How Often Should An Audit Be Conducted? Depends If one has already been conducted How long ago was it conducted Change requires more frequent auditing Rule of thumb – every 2-5 years -If an audit has already been conducted, several questions need to be asked…….. -How long ago was it conducted? If it was conduced more than one year ago, you must ask several questions - what has changed since the audit was done? -If changes such as HVAC system changes, building additions/remodels, building use changes, etc. -The rule of thumb is every 2-5 years.

Should Audits Be Mandatory? Some already are – subsidized housing Its not just about energy anymore….. Environmental issues Economic issues National security issues Political issues Social issues Should audits be mandatory? I can make a pretty solid business case for this idea…… -Energy policy and use affects us all and energy audits help make wise energy decisions. -Subsidized housing requires and audit every 5 years – although the level of audits conducted leaves a lot to be desired. -I would propose that an audit be required with each and every sale – so the new owners know what they are getting into, and can adjust their offer based on some level of knowledge. -Its not just about energy anymore! -Environmental issues such as emissions, ecological footprint, climate change, and the coming carbon tax all have costs associated with them and must be addressed. -Economic issues are different for every community and utility, but ignorance is not bliss! -National security is now a major concern and our energy policy plays a major role. -Political issues drive our energy policies – sometimes to the detriment of our economy. -Social issues are affected by energy use and we are just now beginning to be able to associate a cost with some of these. Good stewardship has its rewards and can be measured monetarily. Example – tree planting programs help improve the utility’s image, increase property values, beautify the community in addition to saving energy. All of these give credibility to the utility and help increase participation in other utility energy programs.

Opportunities For Suggesting Energy Audits High bill complaints Delinquent bill customers Low-income households Struggling businesses Criteria for available funding Businesses seeking a competitive edge I have been asked many times – how do you get customers to request energy audits? The answer is there are many ways…….. -When a customer complains about a high utility bill, this is a perfect opportunity to suggest and energy audit. Give them the opportunity to do something about it. -Customers who are delinquent with their payments often suffer from higher than average energy bills. An audit will give them the information needed to fix the problems. -Low-income households often spend more of their income on energy than the average…. -Struggling businesses often forget about calculating how much energy goes into producing, marketing or selling their product. An audit can make them competitive again. -Utilities with rebates and incentives can require an audit as a prerequisite to qualification. -Businesses seeking a competitive edge will explore any and every way to gain that edge. An audit can often provide the information that leads to realizing that competitive edge.

How Do We Get Requests For Audits? Media spots Thermogram of every home & business EUI calculation Other…. There a may ways to get customers to request an audit…….. -Print a story in the local newspaper with a photo of the mayor or other respected city leaders signing up for an energy audit. -tape an interview for a radio station promoting energy audits. -Get some TV coverage of a success story resulting from an audit. -Send audit promotion flyers with the utility bills. -Give presentations at local organization’s meetings -Take an infrared photo of the street side of every home and business and send it to them with their utility bill. Include an invitation to call for an interpretation. When they call, suggest they are a prime candidate for an energy audit. -Calculate the energy use index for every caller’s facility and let them know how they compare to other similar uses. Let them know if they are below or above the average energy use for their building type and suggest and audit. -What are some of you doing to promote energy audits????_________________

After The Audit – Now What? The level of response depends on …… The auditor ROI Incentives Available budget On-going communication What can utilities do during and after the audit? The success of the audit program is directly related to the level of response. -The level of response depends first and foremost depends on the auditor…… -His/her attitude while doing the audit. -The speed with which you respond to a request for an audit. -On-the-spot results. -How competent is he/she? -ROI is another factor – if ROI is great, it makes a great business case. -Incentives offered by the utility, or by the state, or by the Federal Gov’t such as rebates, financing, low-interest loans, lease options, and direct subsidies, all play a major role today. Example – solar systems in Colorado get over 60% of the system paid for with incentives. -Available budget often allows implementing only 2 or 3 of the audit recommended measures. Performance contracting can play a helpful role is these instances. -Communication with the audit recipients to inform or remind them of available incentives helps increase the audit response rate. While the audit response rate may not be all that important, it directly affects the impact of the audit program. -A good audit program is all about educating the consumer and raising the awareness level of the consumer.

Ingredients Of An Audit EUI calculation Identifies all energy types being used Identifies all energy users Identifies improvement measures Lists cost, savings, and payback for each Addresses all other client concerns A good audit consists of several constant ingredients……. -The EUI calculation is like MPG on your building -All energy types being used are identified – electric, gas, fuel oil, wood, renewables, etc. -All energy users are identified – appliances, processes, HVAC, heat loss/gain, etc. -Every opportunity for improvement is considered - and listed - with numbers -The cost of each improvement, its 1st year savings, and simple payback for each measure -All client concerns are listed and addressed – even if the payback is very long – 100 yrs

What Does An Audit Address? Building shell Heating system and water heater Maintenance and safety practices Air tightness Indoor air quality Energy-bill analysis Ice-dam problems Basement dampness Window condensation Excessive dust levels Dry air Insulation levels Mechanical systems Cost/benefit analysis Here are some examples of common subjects an audit addresses.

Diagnostic Tools Meters – watt, volt, power factor, etc. Blower door Infrared camera Smoke gun Calculator/software program Providing a good audit requires the use of some diagnostic tools…… -Meters are used to measure energy usage. Kill-a-Watt….inexpensive…..valuable tool -Blower door measures air leakage, duct leakage, identifies areas of leakage -Infrared camera – great technology – cost have come down – example – what it can do… -Smoke gun – shows air leakage spots, air flow patterns, - seeing is believing. -Software programs/calculators/coefficients all help provide valuable information.

Benefits Of An Audit Program Financial Economic Environmental Social Improved customer service Establishes relationship with customers Financial – cost savings improves the bottom line Economic – Reducing energy costs stimulates the local economy. Making energy improvements creates jobs. The roll-over affect comes into play. Environmental – reducing energy use also reduces emissions and the harmful side affects. Social – Community pride grows with each contribution to environmental and economic improvement. Practicing good stewardship of our resources has social benefits that are hard to put a value on but there certainly is value. Improved customer service is another benefit of a good audit program Establishing relationships with customers is and has been a primary focus of many utilities in the last decade with Key Accounts Programs, etc. A good audit program establishes a relationship and opens the door for communication on a number of levels.

Guiding Principles Long-term commitment to provide audits Good results Require some level of financial participation from each requestor Continuous development Long-term commitment means……. -Making audits an on-going part of your energy policy -Budget to subsidize energy auditing every year -Provide resources to administer the program Good results means …….. Must professionally train your auditors Broad acceptance by both the clients and the auditors Quality control system Monitoring system Satisfied clients Ask for some level of financial participation from each entity being audited It eliminates those who are not serious It fosters buy-in by each client It stretches the available budget 4. Continuous development means - adjusting and fine-tuning the program as needed

Western’s Equipment Loan Program Audit Kit Free to all Western customers Make requests online at http://www.wapa.gov/es/loan/default.htm Or call Gary Hoffmann at 720-962-7420 Or call Ron Horstman at 720-962-7419

Leadership and Vision People underestimate their capacity for change. There is never a right time to do a difficult thing. A leader’s job is to help people have vision of their potential.

The Growing Leadership Role of Utilities Utilities can provide the data necessary for describing the local energy system and the effects of changes on it Utilities can supply technical resources to help analyze alternatives and strategies Utilities are required to participate in various local, state, and nationally mandated energy programs Utilities can undertake other efficiency programs Utilities have experience and capital and are in a position to expand into other energy service areas Utility companies can play an important role in helping their communities use energy more efficiently. By forming partnerships with community organizations, utilities can design and deliver energy-efficiency programs that address their community’s specific needs and goals. Demand-side management (DSM) programs, which focus on decreasing the demand for energy by promoting efficiency, conservation, and load management, represent an important tool to communities aiming to reduce energy consumption. Given the listed opportunities and expertise utilities possess, there is no denying their role as a leader with regard to energy matters. Leaders lead in either the right direction or the wrong direction. Which direction are you leading?

Why Take a Leadership Role? Our present energy policies are not working Everyone uses energy and contributes to the associated problems so we must contribute to the solutions Energy problems are worldwide in scope but the cost problem is local and immediate The truths of “national independence” are self-evident – those of “energy independence” are not!! Energy independence is not - energy nationalism, or energy self-sufficiency, or energy security (protecting access to resources and transportation routes through political, economic and military means so we have enough for ourselves, but have little concern for the rest of the world) Energy independence means freeing humanity from the fossil fuel energy sources that are destabilizing the earth’s atmosphere and the conditions of life and society that depend on natural systems. It means liberation from the policies, economic ideas, habits and modes of thinking created during the ages of coal and oil. The desired end-state is clear – independence from fossil fuels and the old consciousness they fostered. We must be part of the movement for energy transformation. Energy problems are worldwide in scope but the cost problem is local and immediate. It affects the local economy, where jobs could be lost if supplies are curtailed or costs rise too high. It affects the cost of local government, which could result in increased taxes or decreased services. Directly or indirectly, it affects the prosperity of each of our communities, our ability to grow and meet the needs of present and future citizens. Utilities can partner with local governments and work with customers to carry out energy programs. Utilities touch people and get things done.

Utilities & Energy Efficiency Principles Get your own house in order first Programs must have measurable results Include and treat all customers/sectors of the community equally All actions should be cost-effective Programs should stimulate private businesses Consider all aspects of each program so it is a win-win for the customer, the community and the utility

What’s Stopping You? What are some obstacles some of you have overcome while implementing innovative energy programs.

What are you Doing? Life is not about waiting for the storm to pass; it’s about learning to dance in the rain

Questions?