1. Contractor Credentialing: Managing Risk Raising the Bar in Home Performance Contracting Larry Zarker BPI

2. This Home is 90 Years Old and It Has Never Had a Physical

3. Whole House Contracting Starts with a Comprehensive Energy Audit

4. Energy Audits Waste Energy and Money… …If They are Not Converted into Work But, as we all know… ______________

5. The Challenge  Nearly 130,000,000 housing units in U.S.  NY HPwES program reaching 7,000 units per year; after 9 years only 1% of the housing stock transformed.  How do we ramp up to a ten year upgrade on all existing homes in the country?

6. Ramping Up Home Performance StateUnits of Housing 10,000 Years 1000 Years100 Years 10 Years U.S. Total 130,000,000 13,000130,0001,300,00013,000,000 Pennsylvania 5,477,864 548 5,478 54,779 547,786 Scenarios for Achieving Scale: * Source: U.S. Census, 2009 We are currently on a 10,000 year path to systematically upgrading the performance of the nation’s housing stock.

7. Home Performance Provides Solutions  Dust and Allergies  Comfort Issues  High Utility Bills  Hazardous Materials  Moisture  Climate Change  ENERGY INDEPENDENCE

8. Typical home…full of systems…  Drainage system  Foundation system  Flooring system  Wall system  Ceiling system  Roof system  Heating system  Air conditioning system  Ventilation & IAQ systems  Moisture control systems  Distribution system  Exhaust systems  Plumbing systems in/out  Electric, Appliance & Lighting systems  Energy management system Key Question: Do you know where your fresh air comes from?

15. Furnace Filter Slot Return Air

17. Corrosion on Hot Water Tank

18. Pipe Insulation

21. What BPI Offers  National technical standards for the home performance industry based on sound building science (open, transparent, consensus-developed process)  Certification of individuals in professional technical designations  Accreditation of contractors committed to delivering quality, home performance improvements  Quality assurance to verify conformance with BPI Standards and provide feedback for continuing improvement  Affiliation of organizations that deliver BPI testing services in their market 21 Serving you since 1993

22. BPI Certification Model Field Exam for Building Analyst BPI Certified Building Analyst Professional Written Exam for Building Analyst BPI Certified Heating Professional Written Exam for Envelope Field Exam for Envelope BPI Certified Envelope Professional Written Exam for Gas or Oil Furnaces or Gas or Oil Hydronics Written Exam for Manufactured Housing Field Exam for Heating Field Exam for Manufactured Housing BPI Certified Manufactured Housing Professional BPI Certified Air Conditioning or Heat Pump Professional Field Exam for Air Conditioning or Heat Pump Written Exam for Air Conditioning or Heat Pump

23. Certification Provides Differentiation

24. Building “Stackable” Credentials  From entry level worker to seasoned veteran  Across technician skills sets (auditing, envelope, heating, AC/Heat Pump, QA Inspection, etc.)  Including sales and marketing, management, and other job classifications  Working with DOE WAP designations of Energy Auditor, Installer, Crew Chief and QA Inspector

25. BPI’s Home Energy Auditing Standard in final comment resolution before publication.

26. New Installer/Crew Chief Certifications  Whole House Air Leakage Control Installer  Whole House Air Leakage Control Crew Chief  Accessible Areas Air Leakage Control Installer

27. Red Rocks CC ALC Installer Props

28. Driven by Affiliate Growth: 305 Total

29. Produces Huge Influx of Certifications

30. What is BPI Accreditation? A professional credential awarded by BPI to contracting companies who commit to offering comprehensive “whole house” home performance solutions for their customers.

31. BPI Home Performance Contractor Model  Educate Customers on Whole-House  Offer Comprehensive Solutions  Get Key Staff Trained & Certified  Follow BPI Standards in Your Work  Last Do No Harm by “testing out”  Participate in Independent, Third-Party Quality Assurance Program

32. Positioning in the Market Greed Ad for Individual Technicians Differentiation Ad for Contractors

33. Solutions Based Selling Verifiable Results BPI Home Performance Contractor Model

34. Civil suit targets 12 for carbon monoxide deaths Three local men indicted for manslaughter

35. BPI Accreditation Costs How much does it cost to get BPI Accredited? Training for 2 Certifications: ($790 - $2,400) BPI Certification Exam Fees: $550 x 2 = $1,100 Accreditation and Quality Assurance: 1,500/year Total Estimated Initial Cost: $3,390 - $5,000

36. EmbroidMe Franchise Fees How much does it cost to open an EmbroidMe Franchise? Total Investment: $66,300-$187,400 Initial Franchise Fee: $35,500 Royalty Fee: 5% Advertising Fee: N/A Term of Agreement: 35 years Renewal Fee: $1.5K