1. Overview Home Star a priority legislative initiative for President Obama Small window of opportunity to achieve passage prior to October recess HSC pressing to secure support and votes for passage

2. HOME STAR $5 Billion* SILVER STAR –$3.1 Billion GOLD STAR –$1.5 Billion Financing / QA / Admin –$400 Million Cost: $6 Billion Homes: 3.3 Million Jobs: 168,000 Homeowner Saving (10 yr.): $9.4 Billion Equivalent Cars Off-Road: 615,000 Cars Power Generation Offline: 4 x 300MW Plants Cost: $6 Billion Homes: 3.3 Million Jobs: 168,000 Homeowner Saving (10 yr.): $9.4 Billion Equivalent Cars Off-Road: 615,000 Cars Power Generation Offline: 4 x 300MW Plants

3. . 3 Up to a $1,500 rebate per measure Not to exceed $3,000 Not to exceed 50% of project cost

4. 1. Energy Assessment 2.Retrofit  Fundamentals Weatherization Insulation  Major systems Heating / Cooling Water Heating  Renewables Solar 3. Quality Assurance 4 $3,000 incentive for a 20% savings $1,000 for each additional 5% savings Not to exceed 50% of project cost or $8,000

5. HOME STAR Financing $200 Million for credit supports and interest buy-downs Supports a wide variety of existing financial products including Will allow American families to achieve cash flow positive results on most HOME STAR projects from day one 5

6. Quality Assurance Provider Rebate Aggregator State Federal Rebate System Contractor State Energy Office regulates QA providers network., local program coordination, infrastructure development. State designates HOME STAR Financing entity. Federal Database system that tracks jobs uploaded by Rebate Aggregators, notifies QA providers, and processes rebate requests. Third party (non contractor) entities that conduct on-site quality assurance inspections, insure contractor eligibility. Entities delegated to RESNET or BPI QA providers, existing state residential efficiency program, or entity designated by the Secretary. Entity that aggregates job data and rebate forms, checks to ensure eligibility and accuracy, uploads to Federal Rebate System, then distributes payments to contractors. QA providers, Existing Residential Retrofit programs, and national companies are all eligible to be Rebate Aggregators as determined by the secretary. Companies that contract with homeowners can perform Rebate Aggregator role but not QA role. Company that enters into contracting agreement with homeowners. Silver Star Contractors eligible with License and insurance. Gold Star requires BPI Accreditation or other standards approved by the Secretary. HOME STAR Program Actors

7. Legislative Design Objectives Primary objective: move quickly to create jobs based on existing infrastructure Establish program elements in legislation to avoid the need for extended rule making or procurement Let the market work: Work through predefined organizations and networks Insure both short-term job creation and long-term quality jobs through financing, standards, and enhanced infrastructure Build a broad coalition that can support a bi-partisan solution

8. Integration with State and Regulatory Programs Existing utility/state programs are pre- authorized to act at Rebate Aggregators and QA providers New Aggregators must coordinate with and not disrupt existing approved programs Energy Office and Utility Support

9. Integration of Home Star and Existing State Programs Existing programs provide Rebate Aggregation + QA Adjust existing programs to accommodate new Federal $ Use Home Star funds to the State to introduce or expand components: financing, QA, training

10. Thank you! Steve Cowell stephen.cowell@csgrp.com 508.836.9500 x13259 www.csgrp.com