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The Arkansas Residential Energy Efficiency and Conservation Initiative

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Presentation on theme: "The Arkansas Residential Energy Efficiency and Conservation Initiative"— Presentation transcript:

1 The Arkansas Residential Energy Efficiency and Conservation Initiative
(AREECI)

2 INDEX Future of Weatherization: Weatherization Plus 2015
Background ………………………………………………………………………....3 Strategy …………………………………………………………………………………3 Mission…………………………………………………………………………………..3 Focus Area …………………………………………………………………………….3 New Market Development …………………………………………………..4 Community Efficiency Planning ………………………………………….4 Messaging/Communications/Outreach ……………………………….4 Quality Weatherization Services ………………………………………..4 Current Weatherization Program Cover Page ………………………………………5 Current WAP Description.……………………………………………………..……………….6 Current Program Staff …………………………………………………………………………….7 Current WAP Service Agencies ………………………………………………………………8 Current Service Area Map …………………………………………………………………….9 How It Works ………………………………………………………………………………………….10 Who Is Eligible ……………………………………………………………………………………….10 Application Process ……………………………………………………………………………….11 Grants/Funding ……………………………………………………………………………………… 11 About Arkansas Weatherization Program (AWP) ………………………………..11 Proposed Weatherization Program Cover Page ……………………………………12 Proposed WAP Description.……..…………………………………………..………………13 Proposed Program Staff ……………..………………………………………………………..14 Proposed WAP Service Agencies …………………………………………………………. 15 Proposed Service Area Map ……………………………………………………………..….16 How It Works ………………………………………………………………………………………….17 Who Is Eligible ……………………………………………………………………………………….17 Application Process ……………………………………………………………………………….18 Grants/Funding ……………………………………………………………………………………… 18 Program Funds………………………………………………………………………………………..18 Demand Side Mngmnt Program ……………………….………………………………..…19 Market Creators………………………………………………………………………………………20 New Markets ………………………………………………………………………………………….22 Points of Differentiation ……………………………………………………………………….25 Program Operations ……………………………………………………………………………..26 Value-Added Statement & Tool …………………………………………………………… 27 Oversight………………………………………………………………………………………………..28 Leveraging/Coordination.……………………………………………………………………..29 Budget ……………………………………………………………………………………………………. Transition Plan.………………………………………………………………………………………. INDEX 9/21/2018

3 Overview of Weatherization Plus 2015
Background The U.S. Department of Energy (DOE) administers the Weatherization Assistance Program (WAP). Weatherization’s mission is to reduce energy costs for low-income families, particularly for the elderly, people with disabilities, and children, by improving the energy efficiency of their homes while ensuring their health and safety. Since 1999, Weatherization has engaged in a strategic process to outline 5- year goals for the Program to achieve. The initial strategic planning effort resulted in the “Weatherization Plus: Opportunities for the 21st Century” report and established the Weatherization Plus initiative. The goal of Weatherization Plus is to achieve significantly greater energy cost savings for more low-income households and to increase Weatherization’s contribution to the economic and environmental health and sustainability of the nation’s communities. The recent changes within Weatherization enacted from the American Recovery and Reinvestment Act of 2009 (Recovery Act) brought even a greater flexibility and opened new possibilities of additional energy efficiency and renewable energy work that is being accomplished by the Weatherization Network while they are delivering Weatherization services. As the Recovery Act comes to an end and the Weatherization moves into the next generation of providing efficiency and renewable energy improvements for millions of families across the country, the time has come to identify a new strategic roadmap to guide Weatherization through 2015 and beyond. A Weatherization Plus 2015 Strategy will: Ensure Weatherization is positioned to leverage necessary resources to meet the needs of our clients that are beyond the Weatherization scope; Position the Weatherization Grantee and Sub grantee networks to improve services to the existing market and to expand to markets beyond those income-eligible households; Clearly convey the short and long-term benefits of the Weatherization and the impact it makes on the local, regional, state, and national levels. Institute consistent delivery of quality Weatherization services to the households we serve. Mission To develop a strategic plan that will provide direction to the Weatherization Network which will ensure access to funding in future years, raise the bar for quality services delivery, and communicate the value of Weatherization services to improve the energy efficiency of our Nation’s housing stock. Focus Areas Leverage Resources Expand leveraged dollars flowing through the Weatherization Network. 9/21/2018

4 Weatherization Plus 2015 cont..,
Develop a central depository for active federal, state, and local programs that weatherization Grantees and Sub grantees are currently leveraging. Perform research to identify any new potential leveraging or partnering opportunities on the federal, state or local levels. Expand Weatherization Grantee portfolios and partners. Diversify and extend the non-federal funding base. New Market Development Institute new Federal and state interagency agreements. DOE to designate dedicated staff and pursue interagency agreements. Perform market analyses for each region to determine where the Weatherization Network can make the most impact through its specialized expertise. Funding from states, utilities, community development financial institutions, revolving loan funds, state rebate programs. Identify potential pilot projects to launch the strongest new market opportunities. Community Efficiency Planning Establish state and local Weatherization providers as a resource to lead and coordinate community-wide energy efficiency and renewable work. Messaging/Communications/Outreach Re-launch Weatherization’s identity and messaging. Develop and distribute informative resources/materials. Quality Weatherization Services Achieve the goal of 100 % right, 100% of the time. Adopt and deliver desired outcomes of the U.S. Department of Energy’s Standard Work Specifications. Institute Weatherization performance measures. Formalize process for evaluation of Weatherization agencies and follow- up. Set and maintain competency levels of all Weatherization job categories. 9/21/2018

5 Current Program 9/21/2018

6 Current Program Description
The Department of Energy (DOE) Low Income Weatherization Assistance Program known as (WAP) provides eligible households with full-scale home energy conservation services. A home energy audit is performed to decide what measures should be installed on each home. A home energy audit is a service where the energy efficiency of a house is evaluated by a person using professional equipment (such as a computerized audit, blower doors and infra-red cameras), with the aim to suggest the best ways to improve energy efficiency in heating and cooling the house. Arkansas Department of Human Services Office of Community Services has partnered with the Arkansas Community Action Agencies Association (CAA’s) and the community action weatherization network to perform energy audits and retrofit homes. 9/21/2018

7 Administrative Specialist II Administrative Specialist I
Current Program Staff The Office of Community Services (OCS) within the Department of Human Services (DHS) Division of County Operations (DCO) has administrative, programmatic, and fiscal oversight of the U. S. Department of Energy (DOE) funded program. Below is a flow chart and description of positions. Job Duties/Description: Budget Specialist: Responsible for preparing, monitoring, and maintaining program operating budgets. Typical functions will be to create & manage PO’s, Z Warrant Detail, Track Expenditures. Admin Specialist II: Provides clerical and administrative support for the WAP. Typical functions will include updating and maintaining the WAP Data Warehouse, processing incoming and outgoing correspondence, and time keeping. Education & Instruction Analyst (Training Coordinator): Responsible for developing and, implementing , analyzing educational and instruction related goals and objectives. Typical functions will be to coordinate training with WAP Training Centers and oversee special projects as assigned. Ensure compliance with all current and new DOE rules. DOE Grants Analyst: Conduct 2 compliance reviews with emphasis on production and workmanship; one year end evaluation will focus on program operations. ARRA Grants Analyst: Monitor 4 agencies, review 25% of completed units. SERC Grants Analyst: Monitor 2 agencies, review 100% of completed units. Note: Additional duties of two ARRA Grants Analyst includes: assist with Davis Bacon, design Public Information Campaign for WAP; coordinate design of news letter; train new monitors; maintaining the data warehouse; entering information into the DOE reporting system (PAGE). Doris Wright Program Manager DOE Weatherization Monitor, Review Monthly reports Workbook & Invoice forward to Admin Specialist for routing to finance. ARRA Weatherization Monitor, Review Monthly reports Workbook & Invoice forward to Admin Specialist for routing to finance. Administrative Specialist II Administrative Specialist I SERC Analyst Budget Specialist Grants Analyst (2) Grants Analyst (6) 9/21/2018

8 Weatherization Assistance Servicing Agencies
WAP Service Agencies The network of 15 community-based organizations or CAA’s across the state have grant agreements with DHS to provide these services. Note: In addition to the chart below, we have provided a WAP Service Map on the preceding page. Weatherization Assistance Servicing Agencies Agency Counties Served Contact Information BRAD Black River Area Development Corporation Clay, Lawrence, Randolph (870) ext 254 CADC Central Arkansas Development Council Calhoun, Clark, Columbia, Dallas, Hot Springs, Lonoke, Montgomery, Ouachita, Pike, Pulaski, Saline, union (501) (501) CAPCA Community Action Program for Central Arkansas, Inc. Cleburne, Faulkner, White (501) ext 122 CRDC Crowley’s Ridge Development Council Craighead, Crittenden, Cross, Greene, Jackson, Poinsett, St. Francis, Woodruff (870) ext 120 C-SCDC Crawford-Sebastian Community Development Council, Inc. Crawford, Sebastian (479) ext 110 CSO Community Services Office, Inc. Garland (501) MCAEOC Mississippi County, Arkansas Economic Opportunity Commission Mississippi (870) M-DCS Mid-Delta Community Services Inc Lee, Monroe, Phillips, Prairie (870) NADC Northcentral Arkansas Development Council, Inc. Fulton, Independence, Izard, Sharp, Stone (870) OHC Office of Human Concern, Inc. Benton, Carroll, Madison, Washington (479) OOI Ozark Opportunities, Inc. Baxter, Boone, Marion, Newton, Searcy, Van Buren (870) PB-JCEOC Pine Bluff-Jefferson County Economic Opportunities Commission, Inc. Arkansas, Cleveland, Grant, Jefferson, Lincoln (870) SEACAC Southeast Arkansas Community Action Corporation Ashley, Bradley, Chicot, Desha, Drew (870) SWADC Southwest Arkansas development Council, Inc. Hempstead, Howard, Lafayette, Little River, Miller, Nevada, Sevier (870) UHDC Universal Housing Development Corporation Conway, Franklin, Johnson, Logan, Perry, Polk, Pope, Scott, Yell (479) 9/21/2018

9 75 County WAP Service Area Map
Note: CAA’s service territory is color coordinated. BRAD Pocahontas OHC Rogers OOI Harrison CLAY BOONE FULTON BENTON BAXTER RANDOLPH CARROLL GREENE MARION CRDC Jonesboro IZARD SHARP NADC Batesville LAWRENCE WASHINGTON MADISON SEARCY NEWTON CRAIGHEAD STONE INDEPENDENCE MISSISSIPPI JOHNSON POINSETT POPE FRANKLIN VAN BUREN CLEBURNE JACKSON CRAWFORD UHDC Russellville Blytheville MCAEOC LOGAN WHITE CROSS CRITTENDEN FAULKNER CONWAY CAPCA Conway CSCDC Ft. Smith SEBASTIAN YELL WOODRUFF ST FRANCIS CADC Benton PERRY PRAIRIE LEE SCOTT LONOKE CSO Hot Springs PULASKI MDCS Helena SALINE MONROE POLK MONTGOMERY GARLAND PBJCEOC Pine Bluff PHILLIPS ARKANSAS HOT SPRING GRANT JEFFERSON HOWARD PIKE SEVIER CLARK DALLAS CLEVELAND LINCOLN DESHA LITTLE RIVER HEMPSTEAD DREW NEVADA SEACAC Warren OUACHITA CALHOUN MILLER BRADLEY LAFAYETTE CHICOT ASHLEY UNION COLUMBIA Texarkana SWADC 9/21/2018

10 How It Works Who Is Eligible?
The Weatherization Assistance Program helps low-income households reduce their heating and cooling bills by providing full-scale home energy conservation services. Services provided by the program result in a more comfortable, safe home and a permanent improvement in the lives of occupants. The program is operational year round. After a household is determined eligible, the local agency schedules an energy inspection of the home. A DOE trained Energy Auditor completes a full inspection of the energy and health and safety concerns of the home and completes a Work Order/Job Write-Up. A network of Community Action Agencies (CAA’s) use crews or local private-sector weatherization contractors to complete the work at no cost to the occupants. The actual conservation work completed is dependent on the specific needs of the home. However, typical work includes: air sealing, attic and/or sidewall insulation, weather-stripping, minor repairs associated with the weatherization work. All work receives a thorough Quality Control inspection by the local agency's Quality Assurance Auditor. Households with incomes that do not exceed 200% of Poverty Guidelines as determined by the Department of Energy (DOE) may be eligible for the Weatherization Assistance Program. In addition, those households with a member receiving SSI are categorically eligible. Due to limited funding, priority points are awarded to households with members who are elderly, handicapped, children under 7, or Native Americans. Households with exceptionally high energy bills may also receive priority of service. Tenants (with landlord approval) as well as homeowners are eligible for weatherization. Who Is Eligible? 9/21/2018

11 About the Arkansas Weatherization (AWP) Program
Applicants must apply and be determined eligible for the Weatherization Assistance Program. The Head of Household may apply to the local Community Action Agency (CAA). Applicants are required to provide household income information. Weatherization services vary depending on the specific needs of the home and DOE approved conservation measures. An average grant of $6,572 is awarded for each home for installed energy efficiency measures. No client contribution is required. In addition to using funds provided by DOE WAP, OCS leverages funds from the Low Income Home Energy Assistance Program (LIHEAP) in order to address all the retrofit needs of the home. LIHEAP is a separate program administered by OCS. Sub grantees are encouraged to leverage with the utility-funded Arkansas Weatherization Program (AWP). If the home has both electric and gas utilities an agency could receive an additional $1,400 ($700 per utility) toward retrofitting the home. The Arkansas Weatherization Program (AWP) was developed to help reduce energy usage in homes that are severely energy inefficient. The program is available to all Arkansans, regardless of their income or type of home. The program helps customers of participating utility companies find ways to reduce their daily energy usage. Advanced diagnostic technology, such as a computerized energy audit, is used to determine the energy conservation needs of a home. Participating utilities are: Entergy Arkansas Empire Electric Southwestern Electric Power Company Oklahoma Gas & Electric Center Point Energy SourceGas Arkansas Oklahoma Gas Application Process Grants/Funding About the Arkansas Weatherization (AWP) Program 9/21/2018

12 Proposed Program 9/21/2018

13 Proposed Program Description
Weatherization Assistance Program Demand-Side Management New Markets Using Weatherization Plus 2015 strategy as a guide, we are redefining the Weatherization Assistance Program in the state of Arkansas, whereas a new entity will be developed to re-launch WAP’s identity and messaging. The Arkansas Residential Energy Efficiency and Conservation Initiative (AREECI) will be that new entity. AREECI will better manage expanding responsibilities for coordinating services available to all Arkansas residents (not just low-income) interested in energy efficiency. The current WAP program will be transferred to the Arkansas Economic Development Commission (AEDC), Arkansas Energy Office (AEO) The AEO administers the State Energy Program (SEP) which focuses on statewide energy efficiency therefore, the AEO is the logical choice to house the program since both programs are funded by the Department of Energy. The transfer will help foster the development of a home performance industry statewide. The Arkansas Residential Energy Efficiency and Conservation Initiative (AREECI) will consist of three components as follows: Department of Energy Weatherization Assistance Program, Utility Demand-Side Management Program, and New Markets. The same technology (as used by WAP) will be utilized for evaluating and addressing the home’s needs according to Department of Energy’s policies. Arkansas Residential Energy Efficiency and Residential & Conservation Initiative (AREECI) 9/21/2018

14 Proposed Program Staff
The current positions would transfer with the program and include a Program Manager, Administrative Assistant, Budget Specialist, Training Coordinator, Program Monitor and Technical Monitor. Current staff will be given the opportunity to re-apply for previously held positions. Past performance will be taken into consideration for those considering transferring with the program. The AREECI will require additional staff to administer the program. The new staff will administer the Demand-Side Management Program and the New Markets Program. Estimated additional staff needed is three (3), totaling nine AREECI program staff. Program Manager Budget Specialist Training Coordinator Technical Monitor Administrative Assistant Program Monitor AREECI (3) SEP New Markets Staff (2) DEMAND SIDE MANAGEMNENT Staff (2) DOE Staff (2) 9/21/2018

15 Proposed WAP Service Agencies
DOE requires that service be provided in all 75 counties in the state. Under the new program model, Pulaski, Lonoke, Faulkner, and Cleburne Counties will be bid as a separate service area. The rest of the service territory (71 counties) will be realigned and divided into four areas. Potential service providers will bid on the service territory of their choice. The service territory will be open to both CAA’s and non-profits for bidding. Past performance of CAA’s will be evaluated in the bid process and only high performing CAA’s will be selected to continue. In the event that CAA’s choose not to bid on the new re-aligned service areas, AREECI will pursue non-profits in-state and out-of-state. AREECI will follow DOE 10CFR 440 as it relates to service providers. The program will switch from the use of grant agreements to contracts with the new service providers. Note: Below is an example of the remaining CAA’s serving the Weatherization program. (compare with previous Service Area Map on page 9). Weatherization Assistance Servicing Agencies Agency Counties Served Contact Information CAA -1 TBD Benton, Carroll, Boone, Marion, Baxter, Washington, Madison, Newton, Searcy, Crawford, Sebastian, Franklin, Johnson, Pope, Van Buren, Conway, Yell, Logan Unknown CAA - 2 Fulton, Randolph, Clay, Izard, Sharp, Lawrence, Greene, Stone, Independence, Jackson, Craighead, Poinsett, Mississippi, White, Woodruff, Cross, Crittenden, St. Francis, Lee CAA - 3 Scott, Polk, Montgomery, Perry, Garland, Saline, Howard, Sevier, Little River, Miller, Lafayette, Nevada, Hempstead, Clark, Columbia, Hot Springs, Montgomery, Pike CAA – 4 Grant, Jefferson, Prairie, Monroe, Phillips, Arkansas, Calhoun, Dallas, Ouachita, Cleveland, Union, Ashley, Bradley, Chicot, Drew, Desha Nonprofit Pulaski, Lonoke, Faulkner, Cleburne 9/21/2018

16 Proposed 75 County AREECI Service Area Map
The network of 15 community-based organizations will be reduced to no more than five (5) community-based organizations and/or non-profit organizations. Therefore, AREECI’s service map will be divided into five (5) service areas. CAA - 1 CAA -2 CLAY FULTON BENTON BOONE BAXTER RANDOLPH CARROLL MARION IZARD SHARP LAWRENCE GREENE WASHINGTON MADISON SEARCY NEWTON CRAIGHEAD STONE INDEPENDENCE MISSISSIPPI JOHNSON POINSETT FRANKLIN VAN BUREN CLEBURNE JACKSON CRAWFORD POPE Non-profit WHITE CROSS LOGAN CRITTENDEN CONWAY SEBASTIAN YELL WOODRUFF FAULKNER ST FRANCIS PERRY PRAIRIE LEE SCOTT LONOKE PULASKI SALINE MONROE GARLAND POLK MONTGOMERY PHILLIPS ARKANSAS HOT SPRING JEFFERSON GRANT HOWARD PIKE SEVIER CLARK CLEVELAND LINCOLN DESHA DALLAS LITTLE RIVER HEMPSTEAD DREW NEVADA OUACHITA CALHOUN MILLER BRADLEY LAFAYETTE CHICOT ASHLEY CAA - 3 UNION COLUMBIA CAA -4 9/21/2018

17 How It Works Who Is Eligible?
The Arkansas Residential Energy Efficiency and Conservation Initiative (AREECI) will consist of three components as follows: (1) Department of Energy Weatherization Assistance Program, (2) Demand-Side Management Program, and (3) New Markets. The new structure will better manage expanding responsibilities for coordinating services available to Arkansas residents interested in energy efficiency. Implementation of the Arkansas Residential Energy Efficiency and Residential & Conservation Initiative (AREECI) will begin with the transfer of the current WAP to the Arkansas Energy Office(AEO). Weatherization Assistance Program The WAP will be redefined as an economic development tool to aid in the redevelopment of communities. The program will target low to moderate income customers. The WAP will continue to leverage resources. The Demand-Side Management Program The Demand-Side Management Program will utilize the existing Arkansas Weatherization Program (AWP). The AWP will be modified to add a component where the customer will mail in a request form requesting an energy audit from their utility company. New Markets New Markets will consist of a community efficiency planning component which will establish state and local weatherization providers as a resource to lead and coordinate community-wide energy efficiency and renewable work. i.e. a community can develop an energy efficiency plan with a goal for every household to use compact fluorescent lighting (cfl’s), or replace HVAC systems, windows, or lighting in local municipal buildings. The AREECI will concentrate on a robust community outreach program and highly trained installation crews and/or contractors who will interact directly with Arkansas residents of all income brackets to save energy. The initiative will require the hiring and training of energy auditors and Home Performance contractors to conduct audits and install basic energy efficiency measures. All Arkansans qualify for the program. Low-income households will be served under the WAP, whereas, all other Arkansans will be served under the Demand Side Management Program. Who Is Eligible? 9/21/2018

18 Application Process Grants/Funding Program Funds
WAP applicants must apply and be determined eligible for the Weatherization Assistance Program through the CAA’s or non-profit contractors. Applicants are required to provide household income information. The Demand-Side customers will complete a request card from their utility company and return it to them requesting an energy audit. Under the WAP an average grant of $6,904 is awarded for each home for installed energy efficiency measures. No client contribution is required. In addition to the average grant, if the home has both electric and gas utilities, an agency can receive an additional $1,400 ($700 per utility) toward retrofitting the home. The Demand-Side customers can apply for the AEDC revolving loan program to fund the cost of installing the energy efficiency measures, which were recommended by the audit. The revolving loans can not exceed $25,000. Potential funding for AREECI’s Program Year 2013 is $8,566,608, which is available to support Program activities. The DOE Program allocation for Program Year 2013 is projected to be $1,000,000. The AWP program allocation is projected to be $3,000,000. LIHEAP funding is projected to be $4,066,608, which is 15% (a maximum of 25% can be allocated). In addition, approximately $500,000 in prior year LIHEAP funds will be available in Program Year 2013, for a total of $4,566,608 in LIHEAP funds. For the administration of the AREECI, up to $856,661 in DOE and LIHEAP funds will be retained for administrative costs, and training & technical assistance costs. The state will retain 5% and 5% will be allocated to the sub grantee network. The balance of $7,709,947 will be available for allocation to service providers. Service providers will receive an allocation based upon the size of the service territory. Funding will continue up to five years unless the service provider withdraws, or if monitoring of the service provider indicates serious, irresolvable problems. Application Process Grants/Funding Program Funds 9/21/2018

19 Demand Side Management Program
The Demand-Side Management Program will consist of the AWP which was established by the Public Service Commission (PSC). PSC mandated utility participation in the AWP. The AWP is offered statewide. The steps for AWP are: Utility customers will receive an offer of a free energy audit from their utility in their monthly bill. The customer will submit a request form to their utility requesting an energy audit. The utility will forward the request to AREECI who can provide the service in-house or forward it on to a third-party provider. The third party provider will perform an energy audit which will be paid for with funding from the utility energy efficiency program. Once the customer receives the audit they will be able to contact the AREECI for information on rebates and a list of Certified Home Performance Contractors to install the measures recommended by the audit. Utility Companies Demand Side Customers Energy Audit Results 3rd Party Providers AREECI Staffer w/ Rebates Contractors Happy Green Family 9/21/2018

20 Market Creators Green Jobs Initiatives
To develop the Home Performance Industry to support the development of Green Jobs, the AREECI staff will create a blue ocean, where demand is created rather than fought over. The WAP is unique in that we are the uncontested leader in the market space for residential energy efficiency therefore, we are a "Blue Ocean", one that does not have to compete head-to-head with other suppliers for known customers in an our industry. We will capitalize on the uncontested market space of market rate energy efficiency in Arkansas by reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand and getting the strategic sequence right. An example of the outcome is that Demand-Side customers would be offered a free energy audit as an incentive to upgrade the energy efficiency of their homes. The cost of the audit would be paid under the Demand Side Management program with utility funds. Also available to the customer will be a Revolving Loan Program and Rebate Program currently operated by the Arkansas Energy Office. Another market creator will be for state employees; a program will be developed that will allow the employee to utilize payroll deduction to cover the cost of the measures selected. Green Jobs Initiatives and Common Green Job Positions Under the Green Jobs Initiative, Arkansans would be given the opportunity to train to become Energy Auditors or Quality Assurance Inspectors at either of the states two Home Performance/Building Science Training Centers (currently called Weatherization Training Centers). In addition to the positions listed above, a third-party Quality Assurance Monitoring component will be developed for Demand-Side customers. These employment opportunities become a part of the weatherization supply chain and also boost Arkansas’ economy. Job Descriptions and Common Duties: Energy Auditors (EA): Energy Auditors will use the latest technology to perform an energy audit on the home’s energy inefficiency. Health and safety needs will also be taken into account. Once an assessment is done, a work order will be created and given to Home Performance Contractors. Certified Home Performance Contractors: Certified Home Performance Contractors will use the work order supplied to them by either the customer (for Demand-Side customers) or the CAA (for weatherization clients) to guide in installation of the DOE approved measures. Demand-Side customers may choose for the contractor to pick up the supplies, however, materials are provided by the service provider for weatherization clients. 9/21/2018

21 Market Creators cont., Customer/Client Incentives Customer Assurances
Home Performance Contractors are licensed by the State Contractor’s Licensing Board. AREECI has a goal of 100% Right, 100% of the Time. To achieve this goal standardized work specifications will be used, contractors will be trained/certified under DOE curriculum. Final inspections will be required on their work. Home Performance Contractors are eligible to receive an incentive to attend the Home Performance/Building Science Training Centers. Once trained and certified the name of the contractor will be maintained on a list by AREECI. When a customer requests an energy audit and the decision is made to proceed with the work this list of certified contractors will be made available to the customer. Quality Assurance Inspector (QA): Quality Assurance Inspectors are positions that both non-profits and CAA’s have. The Quality Assurance Inspector duty is to conduct a final inspection on the Home Performance Contractor’s work. It is the responsibility of Quality Assurance Inspector to ensure that all measures were installed properly. If it is discovered that the measures were installed improper or did not meet code, a re-work will be issued to correct the measure. The QA is the first line of ensuring that AREECI’s goal for 100% Right, 100% of the Time is achieved. Third-party Field Monitors: The Third-party Field Monitors acts in an oversight capacity. They will conduct a final audit on all completed units/jobs. It is their duty to determine if the 100% Right, 100% of the Time goal has been achieved. Customer/Client Incentives WAP customers – free energy audit. WAP customers – free measures installed. WAP customers – free quality assurance audit. Demand-Side customers - a free energy audit (paid with utility funds). Demand-Side Customers - a Revolving Loan Program to install measures. Demand-Side Customers - a Rebate Program to install measures. Demand-Side Customers (for state employees) - payroll deduction program to cover the cost of the measures selected. Demand-Side Customers – a free quality assurance audit if they commit to submitting utility bills for one year starting 30 days after the measures are installed. New Markets Customers - community-wide energy efficiency & renewable work. New Markets Customers - quality assurance audit. Demand-Side/New Market Customers – review list of EA’s, Contractors & QA’s Customer Assurances AREECI will maintain a website which will have a tab for Home Performance Contractors. AREECI will post the following information on each contractors: Liability Insurance Status DOE Training Attendance Certifications 9/21/2018

22 Market Creators cont., & New Markets
Contractor’s Home Performance Report Liability Insurance Contractors must maintain liability insurance which will be verified by CAA’s and non- profits. Third-party Monitors as well as AREECI staff will verify contractors liability insurance on a quarterly basis. Training/Certifications Each Contractor that has received training through the Weatherization training Centers will have a list of training/certification listed in their attaché case for customers review. Home Performance Contractor’s Performance Report A Home Performance Contractor’s Performance Report (scorecard) will be maintained on all contractors for potential Demand-Side customers to review. This report will be generated based on past customer’s critique. It will be similar to Angie’s List. In addition to the performance report, customer’s can view images of before and after photographs and actual comments for past customers. New Market Development Once Market Creators have opened the industry for New Markets, AREECI will perform a market analysis for each region to determine where the Weatherization Network can make the most impact through its specialized expertise. Using the information, AREECI will identify potential pilot projects to launch the strongest new market opportunities. Two potential pilot projects are: Healthy Homes and Carbon Credits. What's the Purpose of the Healthy Homes Program? The Healthy Homes Program addresses multiple childhood diseases and injuries in the home. The Initiative takes a comprehensive approach to these activities by focusing on housing-related hazards in a coordinated fashion, rather than addressing a single hazard at a time. The HHI builds upon HUD's successful Lead Hazard Control programs to expand its efforts to address a variety of environmental health and safety concerns including: mold, lead, allergens, asthma, carbon monoxide, home safety, pesticides, and radon. AREECI is uniquely position to take the lead as the state’s Healthy Home Coordinator given the fact that the WAP enters hundreds of homes each year. DOE has developed an audit for Healthy Homes that will allow a WAP Energy Auditor to assess environmental health and safety concerns. The Arkansas Healthy Homes pilot will start in the delta and southeast region of the state. Although addressing health needs for Arkansas citizens, Healthy Homes will not generate additional funding. It is simply a mechanism for the AREECI to partner with other entities to provide a more comprehensive service to the state’s most vulnerable citizens. 9/21/2018

23 New Markets cont.., What are Carbon Credits?
Companies emit carbon into the atmosphere while producing their goods. Each company is allocated a certain amount of carbon emission over a period of time. If a company’s carbon emissions are below their given allotment, then they accumulate carbon credits for their unused carbon emissions. Carbon emissions equate to a credit and each carbon credit equals a ton of carbon. Companies that fall below their allowance may sell their remaining credits to companies that have exceeded their limits. This method of allocation and buying/selling of carbon credits is called carbon trading. How Does Weatherization fit within the Carbon Credits Initiative? The goal of the Carbon Credit program will be to sell carbon credits from greenhouse gas reductions achieved through weatherization initiatives. The goal of AREECI is to weatherize 40% of the homes and businesses in the state by 2030, and use the funds generated by the sell of carbon, no matter how small, to help reach this goal. Revenues from the sale of credits would then be reinvested to further energy reduction programs. The Maine State Housing Authority was the first DOE Grantee to develop such a program. DOE supported this effort and used Oak Ridge National Laboratory (ORNL) to assist with the development of the program model. The goal in the Maine program was to potentially sell 8,000 credits per year. Arkansas will use this same program model with a similar goal of selling 8,000 credits per year. The pilot program will be started in Pulaski County. In Phase I, AREECI will work with DOE to establish the state as a participant in the program. A methodology will then be developed for a carbon credit market in Arkansas. In Phase II, the program will be designed to establish and develop a method for measuring the carbon savings that result from weatherizing a home from an independent, third-party validator. In Phase III a second third-party verification will be acquired which is required before the state can start selling carbon credits Using Best Practices from the State of Maine, AREECI will contract with the University of Arkansas at Little Rock to assist with the development of this project. UALR will aid AREECI in understanding Carbon Capture and Storage. Benefits of Carbon Credits Carbon credit trading can be advantageous to governments, consumers and industry. Carbon credits are relatively cheap compared to the price they will be in the future when demand skyrockets. So companies have an incentive to buy them now. Additionally, when companies use and buy/sell credits, 9/21/2018

24 New Markets cont.., Quick Facts Emissions Trading Greenhouse Gas
they are reducing their emissions and energy consumption, which is good for the environment and the company and consumer who are saving money on energy costs. Quick Facts Emissions Trading When companies use their credits in a trade, they are actually being charged to pollute or being paid not to pollute. As a result of the emissions cap placed on each company, the effect of the trade is an overall reduction in emissions. The cap-and-trade program has proven successful when the U.S. developed the Acid Rain Program. Under that program acid rain levels have dropped by 40 percent. Kyoto Protocol The Kyoto Protocol is an emissions target agreement established in The international agreement calls for 37 countries to reduce their greenhouse gas emissions by The agreement uses market-based development mechanisms. Under the program, each country is given an annual emissions quota. If they have too many emissions, then they may purchase credits from another country in the program. The goal of the program is to reduce emissions by 5.2 percent of the 1990 levels by 2012. Greenhouse Gas A major source of greenhouse gases are industrial emissions. Gases include carbon dioxide, nitrous oxide, methane and hydro fluorocarbons. When these gases enter the atmosphere, they hold in reflected energy from the sun and emit that radiation back down to Earth. This greenhouse effect can create climatic changes. 9/21/2018

25 Points of Differentiation
WAP vs. AREECI 15 Arkansas Community Action Agencies Association (CAA’s) serve as WAP sub grantees. Households that do not exceed 200% of the poverty level can be served (exception: families with SSI). Clients do not pay for any of the services. Clients can receive a grant from their participating utility company to leverage DOE funds in paying for measures. Currently only single-family units are being serviced. 5 or less CAA’s and non-profits will service the AREECI. All customers from all economic households that wish to have their unit weatherized can be served. Demand-Side customers will pay to have measures installed. Demand-Side customers can receive a grant from their participating utility company to in paying for measures. Single-family units and multi- family units will be serviced. Demand-Side customers could qualify for a loan to pay for weatherization measures to be installed (revolving loan fund, payroll deduction, etc.…). WAP AREECI 9/21/2018

26 Program Operations The Program Manager and staff will have oversight of the purpose and status of all projects in the AREECI and will use this oversight to support project-level activity to ensure the overall program goals are met. The staff of the AREECI will act as a sounding board for the Program Manager with ideas and approaches to solving program issues that have program impacts, with a program perspective when required. In the AREECI there will be a need to identify and manage cross-project dependencies . The staff will be well placed to provide this insight by actively seeking out such information when monitoring service providers. 9/21/2018

27 Value Added Statement & Tools
“The AREECI is committed to providing quality services to the people of Arkansas using the latest technology in the field of energy efficiency. Besides the obvious benefit of conserving energy, the AREECI provides other benefits to Arkansas and its residents. The program adds millions of dollars to the state’s economy by creating jobs in the weatherization supply chain. The program also mitigates certain health and safety problems in customer’s homes, maintains affordable housing for low-income persons, reduces utility averages, and reduces environmental pollution.” Tools developed by the Program Manager and staff aid in operations, service delivery and oversight, listed below are: Weatherization Assistance Program Operations Manual Internal Financial Procedures Manual Arkansas Field Guide for Service Providers We bring with us: Trained Professional Staff Two Home Performance Training Centers for service providers and contractors On-going study with UALR to determine economic impact of WAP; to measure the carbon emission reductions for the state. 9/21/2018

28 Oversight Service Providers Monitoring
The monitoring process will consist of monthly reporting by service providers, on-site visits by program and fiscal staff, and an annual evaluation of each service providers that reviews compliance with all program rules, energy audit procedures, crew operations/contractor, client interaction, and data collection and reporting. A minimum of 10% of the jobs completed will be inspected, with a goal of inspecting 20% of the jobs completed. Monitoring will consist of: (1) visits to service providers offices and job sites, (2) desk audits, where service providers performance reports and other information is reviewed, (3) Monthly reports submitted by third-party provider. Corrective Actions from Service Providers When problems are discovered, a corrective action plan is developed for areas needing improvement and the service providers is formally notified in writing of actions to be taken. The service providers then have to develop a corrective action plan based on the findings noted in the report. When serious concerns arise, a determination is made regarding the service provider’s ability to continue providing weatherization services. Payments Service providers for the DOE program will be reimbursed monthly for work performed the previous month. The service providers can request an Advance of Funds to start the program and thereafter can request one Advance per month. The third party provided under the Demand-Side Management program will be reimbursed monthly based upon the audits performed. Customers will arrange their own funding for the work performed by Home Performance Contractors. 9/21/2018

29 Leveraging & Coordination
DOE guidance permits grantees to use a portion of the grant to undertake leveraging activities to generate additional non-Federal resources for Weatherization clients who qualify. Administering the AWP The AREECI will administer the utility program (AWP) for Demand Side customers by providing incentives such as free energy audit and a revolving loan program. 9/21/2018

30 Critical Success Factors
Minority Women Owned Workshop It is our goal to reach out to non-traditional service providers, therefore, WAP hosted a MWBE workshop for providers in 2011 and 2012 in an effort to reach new vendors. AREECI will continue these efforts. Critical Success Factors 1. Develop a central depository for active federal, state, and local energy programs. 2. Perform research to identify any new potential leveraging or partnering opportunities on the federal, state or local levels. 3. Adequate funding to provide clients weatherization services. 4. Train and retain skilled crews and contractors. 5. Continue to incorporate advance building science and energy efficiency technologies. 6. Administer quality audits, installations, and inspections. 9/21/2018

31 Weatherization Plus 2015 cont..,
STRATEGIES & ACTIONS: IMPLEMENTATION PLAN MILESTONES DATE BY WHO: Leveraging Resources New Market Development Community Efficiency Planning Messaging/Communications/Outreach Quality Services 9/21/2018


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