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Partnerships for
Horn
fficiency


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CONTENTS
Executive Summary
Current and Future Energy Use
in American Homes 	
Overcoming Barriers to
More Efficient Homes	
Partnerships for
Home Energy Efficiency  	
Key Milestones for Partnerships
for Home Energy Efficiency  ...
Benefits of Partnerships
for Home Energy Efficiency ....
Overview of Coordinated
Agency Work Plan	
Schematics	
References	

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Partnerships  for
Home  Energy Efficiency
EXECUTIVE  SUMMARY
If, through greater energy efficiency, American households saved
10% on their home energy bills in the next 10 years, that would
  total almost $20 billion a year in savings,
>• increase the affordability and comfort of homes,
>• reduce demand for natural gas by more than 1 quad,
>• avoid the need for more than 40 power plants, and
>• prevent the greenhouse gas emissions equivalent to those from
  more than 25 million vehicles.


Introduction
Americans spend more than $160 billion a year to heat, cool, light, and live in our
homes. This energy represents about 21 percent of the national total and includes
significant demands for electricity and natural gas. Without additional efforts to
improve the efficiency of home energy use, our national home energy bill is
expected to rise to $200 billion by 2015 and expend more of our natural resources.
The energy used in our homes also contributes about 17 percent of U.S. emissions
of greenhouse gases.  The President has committed to a national goal of improving
the greenhouse gas intensity of the country by 18 percent by 2012. And he has
called on all companies to voluntarily take action to help reduce emissions of
greenhouse gases.
With these challenges in mind, three Agencies of the federal government are
coordinating the Partnerships for Home Energy Efficiency to make U.S. homes
more energy efficient and help households cost-effectively save 10 percent or
more on their energy bills over the next decade. This cross-agency initiative
will build on existing policies and programs that involve partnerships with
manufacturers, retailers, home contractors and remodelers, utilities, states,
financial organizations, and educational institutions, among others, to leverage
the power and creativity of the marketplace. The initiative also will build new
coalitions and undertake new programs.
The U.S. Department of Energy (DOE), Department of Housing and Urban
Development (HUD), and Environmental Protection Agency (EPA) are convinced
that together with our partners we can significantly improve the efficiency of
America's housing stock in the coming decade by bringing better information and
cost-effective services, technologies, products, and practices to all sectors of the
housing market. The Agencies and their partners will promote adoption of the
   PARTNERSHIPS  FOR  HOME  ENERGY EFFICIENCY            I     1|

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many available, but as yet under utilized, options for
improving home energy efficiency and educate
households about the benefits of an energy-efficient
home. Helping families improve the efficiency of
their homes is one way for all Americans to be part
of the solution.
The Partnerships for Home Energy Efficiency
primarily focuses on existing homes—both owned
and rented. The initiative provides support to
homeowners who have a personal incentive to invest
in energy efficiency, as well as to rental property
owners wishing to make improvements in their
properties. The initiative addresses market rate,
private sector housing as well as federally assisted
or financed housing.
Progress in improving the efficiency of U.S. housing
has, in fact, been made in the past 30 years through
policies such as building codes and appliance efficiency
standards and through improvements in building
materials, designs, technologies, and construction
practices. New refrigerators, for example, require just
one-third the electricity they did 30 years ago. However,
great opportunities remain to improve efficiency even
further by expanding on these accomplishments and
leveraging the power of the market.
Advances in energy efficiency will play an
important role in our energy future. Greater
efficiency is a key element of our National Energy
Policy and national efforts to reduce the risks of
global climate change. By helping to make U.S.
housing more efficient, the Partnerships for Home
Energy Efficiency will contribute to these efforts. At
the national level, increased energy efficiency
addresses energy security, environmental concerns,
and energy supply issues. At the personal level,
increased energy efficiency can lower Americans'
home energy  bills, reduce the cost of housing, and
help improve the quality of our lives.
The Opportunities
Many households could save 20 to 30 percent on
their household energy bills through cost-effective
household improvements such as:
  Selecting products distinguished by the ENERGY
  STAR label, the government-backed symbol for
  energy efficiency, when in the market to purchase
  products such as refrigerators, clothes washers,
  dishwashers, and home electronics, among others,
  Paying special attention to using ENERGY STAR
  qualified light fixtures and bulbs in the most
  frequently used areas of the home,
^- Improving the home's "envelope" by applying
  appropriate amounts of insulation combined with
  home air sealing and choosing high-efficiency
  windows when looking for replacements,
  Improving the efficiency of heating and
  cooling systems through better maintenance of
  equipment, sealing the ducts carrying the
  conditioned air, installing modern thermostats,
  and hiring a qualified expert to ensure the
  replacement unit is properly sized and installed
  to deliver the rated efficiency, and
  Remodeling with an eye on energy efficiency
  when household improvements or renovations
  are underway.
Many low income and subsidized housing
households could see similar savings with assistance
from the appropriate weatherization and public
housing energy programs. Households, as well as
housing agencies, that take these measures would
see sufficient savings within the first several years of
a purchase or home improvement project to offset
any additional initial investment.
The three Agencies involved in the initiative understand
that a number of economic, institutional, and practical
obstacles can inhibit families and individuals from
pursuing these energy efficiency opportunities on a
large scale. Market barriers, such as lack of information
and split incentives, limit expenditures on what are, in
fact, attractive investments when examined with full
information. The initiative will work to overcome
these barriers.
       PARTNERSHIPS  FOR HOME  ENERGY EFFICIENCY
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Partnerships for Home

Energy Efficiency
DOE, HUD, and EPA already are partnering with leading
organizations across the country to overcome market
barriers to achieving greater home energy efficiency.
Together, they are bringing information and cost-effective,
energy-efficient services, technologies, products, and
practices to our homes.
Through the initiative, the federal government is extending
existing partnerships and building new ones that will
increasingly promote cost-effective, efficient products,
develop and promote a new suite of energy efficiency
services built on industry best practices that offer additional
home energy savings, promote energy efficiency to low
income and subsidized housing markets, and continue to
integrate the results of innovative research into residential
construction and remodeling practices.
The Partnerships for Home Energy Efficiency will
  Provide greater public education on the value and
  availability of energy-efficient products and services,
>• Give clear, credible information on efficient products to
  consumers through the Energy Guide label and the
  ENERGY STAR program,
>• Develop training in energy-efficient remodeling
  techniques for home remodelers,
  Establish new credentialing programs and quality
  assurance/quality control (QA/QC) mechanisms for
  home contractors and home improvement professionals,
*• Create a new energy efficiency service for the
  installation and verification of cooling equipment, which
  will be available to credentialed contractors who agree to
  employ industry best practices and have their work
  verified,
  Expand the new standardized home improvement
  service—Home Performance with ENERGY STAR—to
  be offered by credentialed home professionals who
  agree to follow industry best practices for efficient home
  retrofits and have their work quality controlled,
>• Create educational materials on energy-efficient  building
  science for career professionals and contractors,
^ Provide access to financing, where possible, to different
  segments of the housing market,
>• Extend energy efficiency products and services into the
  low income and affordable housing market through
  Weatherization Assistance Programs, HUD's Energy
  Action Plan, and partnerships with affordable housing
  providers and intermediaries, and
>• Invest in research on innovative building  science
  technologies, practices, and policies and disseminate
  the research results to benefit residential equipment
  manufacturers, builders and remodelers, homeowners,
  and others in the home energy transaction chain.
CURRENT AND EXPANDING FEDERAL PARTNERSHIPS INVOLVE THE FOLLOWING ORGANIZATIONS:
CURRENT WORK
MANUFACTURERS More than 1,400 product manufacturers across
some 40 product categories for the home
currently distinguish their products that are
energy efficient and cost-effective with the
ENERGY STAR label.
RETAILERS Working with national, regional, and specialty
retailers to provide consumers with clear,
credible information on cost-effective energy-
efficient solutions when they are making
purchasing decisions.
FUTURE WORK
Expand the ENERGY STAR program to qualify
more home products, to increase consumer
awareness of the ENERGY STAR, and to
increase understanding of the cost savings
available to homeowners through their
product choices.
Expand partnerships with national, regional,
and specialty retailers to bring a broader set
of energy efficiency solutions to more
consumers.
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       CURRENT AND EXPANDING FEDERAL PARTNERSHIPS INVOLVE THE FOLLOWING ORGANIZATIONS:
                                CURRENT WORK
                                                   FUTURE WORK
       UTILITIES AND OTHER
       ENERGY EFFICIENCY
       PROGRAM SPONSORS
       Many utilities, state and local governments,
       and other organizations administer residential
       energy efficiency programs as a cost-effective
       way to slow the growth in  energy demand and
       avoid the need for new power plants, among
       other objectives.
Continue to partner with these organizations
and help them deliver clear, credible information
on cost-effective, energy-efficient products
and services.
       HOME BUILDERS
       By the end of 2004, almost 10 percent of
       housing starts earned the ENERGY STAR
       label. These homes are significantly more
       efficient than those built to code, are less
       costly to own and maintain, and are more
       comfortable.
Help more home builders integrate building
science technologies and practices into new
homes, while seeking to reduce energy use by
close to 50 percent through DOE's Building
America Program. Continue to assist current
partners, and help new partners, in promoting
their ENERGY STAR qualified homes to build
consumer interest in and demand for energy-
efficient homes.
       HOME CONTRACTORS,
       HOME IMPROVEMENT
       PROFESSIONALS, AND
       REMODELERS
       Working with states, local governments,
       energy efficiency program sponsors, and
       trade industries to offer services that help
       homeowners obtain properly sized and
       installed heating and cooling equipment, as
       well as home improvement  services that apply
       industry best practices to whole home retrofit
       projects.
Help establish new training and credentialing
programs for home contractors, home
improvement professionals, and remodelers.
Develop the requirements for two new energy
efficiency services that can be offered by
credentialed contractors.  Provide "Best
Practices" guidelines to assist the more than
200,000  home remodeling firms in the United
States in incorporating cost-effective, energy-
efficient features into their projects.
       FINANCIAL
       ORGANIZATIONS
       A key incentive to improving energy efficiency
       is financing. Fannie Mae, Freddie Mac, the
       Federal Housing Administration  (FHA),the
       USDA, and other organizations offer energy-
       efficient mortgages with partner lenders,
       which help owners finance cost-effective,
       energy efficiency improvements in their
       homes.
Work with these financial organizations as
well as local lenders to promote these
mortgage products. Facilitate the use of
attractive, easy-access loan packages for
remodeling existing homes.
       AFFORDABLE HOUSING
       PROVIDERS
       An extensive set of partnerships exists among
       local public housing authorities, community
       action programs, state housing financing
       offices. Habitat for Humanity, and the federal
       government.
Work to improve the energy efficiency of the
nation's affordable housing stock, hoping to
reduce HUD's estimated annual utility bill of
$4 billion for the approximately 5 million units
of affordable housing throughout the country.
Continue to offer weatherization services to
thousands of low income households through
DOE's Weatherization Assistance Program.
Work with Congress, Building America, and
Habitiat for Humanity to design and build
affordable energy-efficient houses.
       EDUCATIONAL
       INSTITUTIONS
       The Agencies and their partners have
       developed a program plan for educational
       outreach for building professionals.
Develop partnerships with the land grant
universities and community colleges to
transfer federal research and development
results to career professionals and contractors
interested in advanced building science practices.
Li.
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NATIONAL ENERGY POLICY
RECOMMENDATIONS
The Partnerships for Home Energy
Efficiency helps fulfill three
recommendations of the
National Energy Policy.
^ Extend the ENERGY STAR®
  labeling program to additional
  products, appliances, and services.
^ Strengthen public education
  programs relating to energy
  efficiency.
^ Implement a strategy to increase
  public awareness of the sizable
  savings that energy efficiency
  offers to homeowners across the
  country. Typical  homeowners can
  save about 30 percent (about $400)
  a year on their home energy bill by
  using Energy Star-labeled
  products.
From the National Energy Policy, 2001
CURRENT  AND  FUTURE  ENERGY

USE  IN  AMERICAN  HOMES



Introduction
Energy efficiency is the ability to use less energy to produce the same amount of
lighting, heating, and other energy services. For individuals and families, using
less energy means lower energy bills, lower housing costs, and a better quality of
life. For the country as a whole, greater energy efficiency helps us make the most
of U.S. energy resources, reduces energy shortages, decreases the need for new
power plants, lowers our reliance on energy imports, mitigates the impact of high
energy prices, and reduces pollution and emissions of greenhouse gases. Energy
efficiency is an important element of a sound energy policy and our national
efforts to reduce the risks of global climate change.
Improved energy efficiency in our homes  is the result of many individual
decisions, including those of consumers, manufacturers of appliances and other
products, home builders and remodelers,  and officials in state, federal, and local
government agencies. The federal government, through the Partnerships for
Home Energy Efficiency, can help facilitate more decisions to pursue energy
efficiency by improving the dissemination of timely and accurate information
regarding the energy use of consumers' purchases, by setting standards for more
energy-efficient products, and by encouraging industry to develop more efficient
products and homes. The federal government can promote energy efficiency
through programs such as ENERGY STAR®, Weatherization Assistance, and
public housing, as well as through research into and demonstration of innovative
technologies  and practices for improving home energy efficiency.
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Progress has been made over the past 30 years to
improve the efficiency of U.S. housing. However,
great opportunities remain to improve home energy
efficiency even further by leveraging the power
and creativity of the market to build on the
nation's progress.
The Partnerships for Home Energy Efficiency
is a coordinated effort of the U.S. Department of
Energy (DOE), Department of Housing and Urban
Development (HUD), and Environmental
Protection Agency (EPA) in partnership with
leading organizations across the country to improve
the energy efficiency of U.S. homes significantly
over the next decade. The three Agencies, together
with manufacturers, retailers, utilities, state and
local governments, home contractors and
remodelers, financial organizations, and educational
institutions, among others, will leverage the power
of the marketplace to improve owners' and renters'
access to energy efficiency information and cost-
effective services, technologies, products, and
practices. This initiative fulfills recommendations of
the National Energy Policy and allows us all to be
part of the national effort to reduce emissions of
greenhouse gases.
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Energy Use  in American Homes
We Americans spend more than $160 billion a
year to heat, cool, light, and live in our homes. Our
110 million homes currently use 22 quads of energy
(21 percent of the national total). These homes
account for 17 percent of total U.S. electricity use
and a significant amount of natural gas. Natural gas
is used directly by households for heating and
cooking and at the generating plant to make peak
electrical power for services such as air-conditioning.
Generating the energy used in our homes also
contributes about 17 percent of U.S. emissions of
greenhouse gases (Figure 1).
The cost of energy is a sizable household expense;
the average household pays approximately $1,500 a
year. Single family homeowners pay an average of
more than $1,600 per year, and the approximately
33 million households eligible for federal assistance
pay about $1270, on average, per year.2
Our monthly energy bills pay for the following
common home energy end-uses:
  Space heating,
  Space cooling,
  Water heating,
>• Lighting,
>• Refrigerators,
  Large appliances (clothes washers  and dryers,
  cooking equipment, freezers, and dishwashers),
  and
  Small appliances (televisions, other home
  electronics, and home office equipment,
   among others).
                                                                    OTHER GASES
                                                              CO2 FROM
                                                              OTHER
     CO2 FROM
     TRANSPORTATION
     25%
  Source: U.S. EPA 2003
                                      C02 FROM
                                      INDUSTRIAL
                                      ENERGY
                                                                                               C02 FROM
                                                                                               COMMERCIAL
                                                                                               ENERGY
                               C02 FROM
                               RESIDENTIAL ENERGY
                               17%
FIGURE 1. U.S. GREENHOUSE GAS EMISSIONS
                     LIGHTING
                     11.7%
   SMALL APPLIANCES
   19.2%
     LARGE APPLIANCES
     9.6%
                                         SPACE HEATING
                                         30.2%
SPACE COOLING
10.9%
               REFRIGERATORS
               6.4%          WATER HEATING
                            12.0%
   Source: U.S. DOE 2005
FIGURE 2. MAJOR HOME ENERGY END-USES
I                                                 OTHER
                                                 APPLIANCES
                                                 AND LIGHTING

                                                 REFRIGERATORS
                                                I WATER HEATING
                                                 SPACE COOLING
                                                 SPACE HEATING
                                                                          HIGH HEATING
                                                                         DEMAND CLIMATE
                                   HIGH COOLING
                                  DEMAND CLIMATE
                                                       Source: U.S. DOE, EIA 2001
                                                    FIGURE 3. HOME ENERGY BILLS IN DIFFERENT CLIMATES
1 U.S. DOE, EIA 2001, Table CEl-4e.
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Our homes consume 21% of our national energy use
and contribute 17% of U.S. greenhouse gas emssions.
Nationally, space heating represents about
30 percent of home energy use, the single largest
category, followed by small appliances as a
group and then water heating and home lighting
(Figure 2). While the amount of energy for heating
and cooling varies with climate conditions across
the country, most homes have either a significant
bill for heating, for cooling, or for a combination of
the two, which averages about 40 percent of the
total energy bill nationally (Figure 3).
Much progress has been made over the past
30 years to improve the energy efficiency of U.S.
housing. Energy use per person has remained fairly
constant since the 1970s even though house size has
increased, and the number of energy-consuming
appliances within our homes has gone up.2 This
stability in energy use per person is due primarily
to market and government responses to rising
            energy prices over the years. Americans have
            adopted conservation measures at home, while
            Congress has demanded increased energy efficiency
            standards for products and appliances, and states
            have included energy efficiency in building codes.
            Manufacturers are supplying more energy-efficient
            products, and builders are applying better building
            practices in new home construction.

            Future Home Energy Use
            Between now and 2020, if no significant additional
            efforts are made to improve home energy efficiency,
            energy use in U.S. homes is expected to increase as
            the number of homes grows by one-fifth to more
            than 130 million. This growth is expected to spur
            demand for electricity and natural gas, resulting in
            more emissions of greenhouse gases.
 TABLE 1. ENERGY USE IN AMERICAN HOMES
                                   2000
             2010
                2015
               2020
 NUMBER OF HOMES
 (MILLIONS)
 ENERGY CONSUMPTION
 (QUADS)

 NATURAL GAS CONSUMPTION
 (QUADS)

 CARBON EMISSIONS
 (MMTCE)
 ELECTRICITY SALES
 (Billion kWh)
 TOTAL ENERGY BILLS
 (BILLION 2003 $)
105

20.4

5.1

317
162
122

23.5

5.7

369

1471


182
199
216
Source: U.S. DOE 2005


2 U.S. DOE, ElA 2004
3 Electricity sales for 2001
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The increase in home energy demand will occur even
though the energy required for particular end-uses will
decrease. Below are several major trends through 2020 for
key home energy end-uses:
D Heating and cooling will continue as a significant
  part of the home energy bill, representing about
  40 percent of annual energy use in the average home;
  Electricity use for smaller home appliances and other
  products (televisions, other home electronics, and home
  office equipment, among others) will grow by more than
  70 percent, representing about 27 percent of home
  energy use;
!  Electricity use for home lighting will grow by
  30 percent;
^- Energy use for larger home appliances will grow by
  about 10 percent; and
  Electricity use for home refrigeration will decrease by
  more than 20 percent.
Although overall energy use per square foot has decreased
by 30 percent since 1970, this decrease has not been
sufficient to overcome the increase in residential energy
use due to the higher number and larger size of homes.
Increased energy use is expected to continue through the
next two  decades unless there is a much greater emphasis
on cost-effective, energy-efficient products and  services in
new and  existing homes.

Opportunities for Greater  Savings

from  Energy  Efficiency
Many opportunities exist for improving home energy
efficiency. The federal government estimates that many
households could save 20 to 30 percent cost-effectively on
their energy bills, by taking the following steps:
  Selecting high-efficiency products when shopping for
  refrigerators, clothes washers, dishwashers, and home
  electronics, among others,
  Using high-efficiency light fixtures and bulbs,
  Improving the envelope of the home by applying
  appropriate amounts of insulation, sealing air leaks in
  the home, and choosing high-efficiency windows when
  looking for replacements, and
^- Improving the energy efficiency of heating and cooling
  systems through improved maintenance of equipment,
  sealing and insulating the ducts carrying the
  conditioned air, installing modern thermostats, and
  hiring a qualified expert to ensure the replacement unit
  is properly sized and installed to deliver the rated
  efficiency.
These energy efficiency measures pay for themselves,
meaning that households can see sufficient savings within
the first several years of a purchase, which offset any
additional initial investment. These steps can reduce the
40 percent share of residential energy bills that goes
toward heating and cooling, and they offer additional
savings  as homeowners purchase energy-efficient
appliances or undertake major home renovations. The
steps also address the rising energy bill associated with
small household products. If more Americans  took
advantage of these cost-effective, energy-efficient
solutions, they could reap significant home energy savings,
contribute to natural gas and electricity savings, reduce the
number of new power plants needed, improve  their quality
of life, and help reduce emissions of greenhouse gases.
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                                                                OVERCOMING
                                                                BARRIERS  TO
                                                                MORE  EFFICIENT
                                                                HOMES
                                         To understand how the marketplace can improve the energy efficiency
                                         in the existing housing stock, as well as new homes, it is helpful to consider the
                                         range of barriers or impediments to achieving the goal and to identify steps for
                                         mitigating or eliminating those barriers. The current marketplace includes many
                                         product and system choices that have the potential to reduce home energy use
                                         and save households significant amounts of money. However, a number of
                                         economic, institutional, and practical obstacles inhibit their larger scale use.
                                         Common market barriers include:
                                         HIGHER INITIAL COSTS. Energy-efficient products often cost more than
                                         their less efficient counterparts, and some people do not have the extra dollars
                                         available when they make an expensive purchase, such as a major appliance. So,
                                         even if a better appliance would pay for itself fairly quickly through lower energy
                                         bills, buyers tend to purchase the lower priced product without determining the
                                         savings the product may soon provide.
                                         UNCERTAIN BENEFITS. Consumers may be unsure about the credibility of
                                         the energy-savings and cost-effectiveness claims of individual manufacturers,
                                         sales staff, or remodeling designers. Unless consumers are assured of the potential
                                         savings, they may be reluctant to pay the additional costs. Businesses that adopt
                                         labeling programs that spell out energy savings may be more successful in selling
                                         more efficient, yet initially more expensive, products.
                                         INSUFFICIENT INFORMATION. Monthly energy bills generally report the
                                         total electricity or natural gas used, leaving families unsure about the expense of
                                         individual energy-using equipment or products and which investments could
                                         best help them reduce their costs. This incomplete information is a market
                                         imperfection that hinders purchases of cost-effective, energy-efficient products
                                         and investments in cost-effective, energy-efficient services.
                                         LACK OF INCENTIVE. Decisions about the energy efficiency of new homes
                                         and rental properties are not usually made by the consumer who will ultimately
                                         pay the energy bills. To keep costs down, builders and landlords are more likely
                                         to install the least expensive and generally least efficient products that are heavily
                                         stocked and discounted by suppliers as part of volume ordering. The builder or
                                         landlord does not have an incentive to choose the designs, equipment, or
                                         materials  that would be judged most cost-effective by homeowners or tenants if
                                         they were making the decision themselves.
QO:
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Approaches exist for overcoming many of the market
barriers limiting greater energy efficiency in our homes
LACK OF INFORMATION ABOUT FINANCING.
People without the extra dollars to purchase an energy-
efficient major appliance, buy an efficient home, or
undertake a home improvement project often are unaware
of the mortgage instruments and other loan options that
could help them afford the efficient choice. In addition,
they may not realize that they can afford the efficient
choice because savings from their lower energy bills will
more than offset the initial cost within a few years.
LACK OF AVAILABILITY. Frequently, the most
energy-efficient products are less widely available,
especially in smaller communities.
LACK OF AUTOMATION. People often walk out of
their homes with the lights on and the air conditioner
running. Turning off all unused appliances, electronics,
and lights can be inconvenient and time consuming. Lack
of automation (e.g., occupancy sensors) means that
conservation mostly depends on people consciously
choosing to turn switches off. Moreover, some appliances
and electronics, such as stereos, video tape players, and
televisions, continue to use electricity even after they are
turned off.
TABLE 2. MARKET BARRIERS TO IMPROVING HOME ENERGY EFFICIENCY AND APPROACHES FOR ADDRESSING THEM
BARRIERS
Lack of awareness about cost saving options and
links between energy efficiency and comfort, value,
and quality of homes
Poor or conflicting information on product and home
energy performance ^
Lack of performance standards that identify quality
contractors A
Limited quality assurance/quality control (QA/QC)
programs to safeguard against poor workmanship. ^
Lack of standardized home energy performance
services offered by the contractor trade ^
Lack of knowledge about energy efficiency financing
Lack of information in the affordable housing sector
and a process to make energy efficiency improvements
Need for continued technological advances to
improve energy efficiency in new and existing homes _J
Lack of financial incentives for adoption of energy
efficiency in homes A
APPROACHES
Public education to establish the connection
between energy efficiency and its benefits
Clear, credible information on cost-effective, energy-
efficient products and home energy performance
Contractor training and credentialing programs
QA/QC mechanisms to be used by contractors
Whole home energy performance services offered
by qualified professionals
^ Dissemination of information about energy
efficiency financing tools
Implementation/expansion of HUD's Energy Action
Plan to reach the 5 million units under HUD's programs
Continuation of innovative research linked with real
world practitioners
^ Exploration of financial incentives
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These market barriers leave homeowners with
many questions, such as:
l> Which products (or homes) will deliver the
  claimed energy savings?
I* Which products of those that initially cost more
  offer a reasonable return on the additional cost?
l» Which products offer the desired features or
  performance in addition to  greater energy
  efficiency (i.e., is a sacrifice  required)?
I* What design and installation issues are important
  to obtaining the claimed energy performance of a
  product?
l» How does one find a heating and cooling
  contractor or home improvement professional
  who is well versed in the best practices for home
  energy efficiency?
l» Is there money available to  help cover the higher
  initial cost that can be paid  back once the savings
  are in hand?
In addition, many manufacturers, retailers, home
contractors, and others find it  difficult to sell
energy-efficient products and  services due to the
market barriers mentioned previously. The lack of
consumer information and consumer skepticism
about claims for future savings make it difficult to
sell higher priced products and services.
Approaches do exist for overcoming many of these
market barriers and helping the marketplace offer
and deliver energy-efficient products and services
to households across the country. These approaches,
which build on existing energy efficiency policies,
codes, and standards as well as other programs,
include:
> Educating the public on energy use in the home
  and on the potential savings and other benefits
  from energy-efficient products and home
  improvement projects,
l» Clearly and credibly defining which products are
  cost-effectively energy efficient and offer
  attractive reductions in energy bills,
l» Establishing training and credentialing programs
  for professionals who can offer quality services
  for heating and cooling installations and whole
  home improvement projects,
^ Offering greater access to financing for energy
  efficiency improvements where needed,
l» Providing energy efficiency measures to low
  income households and through public housing
  programs,
l» Continuing to undertake research to further
  develop lower cost technologies and practices for
  cost-effectively improving home energy efficiency
  and continuing to disseminate these results to
  manufacrurerer, builders, remodelers,
  homeowners, and others in the home energy
  transaction chain, and
l» Continuing to conduct reseach to improve our
  understanding of market barriers and the
  solutions to them.
The common barriers to improving home energy
efficiency and the broad approaches available for
overcoming these barriers are summarized in
Table 2.
The next section outlines how the three federal
Agencies involved in the Partnerships for Home
Energy Efficiency are working in a coordinated
manner and collaborating with leading
organizations across the country to overcome
market barriers and pursue these approaches.
       PARTNERSHIPS  FOR  HOME ENERGY  EFFICIENCY

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L
                                                    PARTNERSHIPS  FOR  HOME
                                                    ENERGY  EFFICIENCY
                                   Improved energy efficiency is the result of many individual decisions, including
                                   those of consumers; manufacturers; home builders and remodelers; and state,
                                   federal, and local government officials. The Partnerships for Home Energy
                                   Efficiency is a coordinated effort of the federal government to build on existing energy
                                   efficiency policies and programs and to work in partnership with leading organizations
                                   to affect many of these decisions and leverage the power of the marketplace. The
                                   initiative  is designed to improve the access households have to energy efficiency
                                   information and cost-effective services, technologies, and practices with the goal of
                                   significantly improving the efficiency of U.S. homes over the next decade.
                                   To overcome the market barriers to greater home energy efficiency, the
                                   federal government is extending existing partnerships and building new
                                   partnerships that
                                   ^- Provide more public education on the value and availability of energy-efficient
                                     products and services,
                                   >• Give clear and credible information on cost-effective, energy-efficient products
                                     to consumers by building on the Energy Guide label and the ENERGY STAR
                                     program,
                                   ^- Develop training in cost-effective, energy-efficient remodeling techniques and
                                     provide sets of best practices and technical protocols to home remodelers,
                                     Establish new credentialing programs and quality assurance/quality control
                                     (QA/QC) mechanisms for home contractors and other home professionals,
                                   ^- Develop new energy efficiency services for the installation and verification of
                                     cooling equipment, which will be available to credentialed contractors who
                                     agree to employ industry best practices and have their work verified,
                                   ^- Expand the new standardized home energy efficiency service, called Home
                                     Performance with ENERGY STAR, to be offered by credentialed home
                                     professionals who agree to follow industry best practices for efficient home
                                     retrofits and have their work quality controlled,
                                   >• Create educational materials on energy-efficient building science for career
                                     professionals and contractors,
                                   ^- Facilitate access to financing, where possible, to different segments of the
                                     housing market,
                                  |   PARTNERSHIPS  FOR  HOME  ENERGY  EFFICIENCY
TT]

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           ^- Provide tools and information to the affordable
             housing market through HUD's Energy Action
             Plan and assist low income households with
             home weatherization, and

             Continue to invest in innovative research in
             building science technologies, practices, and
             policies and in the dissemination of results to
             manufacturers, builders, remodelers, and
             homeowners.

           The next section illustrates how the three federal
           Agencies are partnering with thousands of leading
           organizations to  implement the ambitious projects
           in this initiative.
TABLE 3. NATIONAL RETAILERS BRINGING ENERGY EFFICIENCY SOLUTIONS TO CUSTOMERS

LOWE'S          Lowe's is broadly educating its customers about energy-saving products and practices through in-store
                  promotions, broadcast advertising, and Web outreach under its branded environmental education
                  message, "Together, We're Saving More Than Money." This fall, Lowe's will feature the benefits of
                  energy-efficient lighting as part of the "ENERGY STAR Change a Light, Change the World" campaign and
                  plans to launch a special fall promotion of all ENERGY STAR qualified products and practices to help
                  customers prepare their homes for winter.

THE HOME        The Home Depot has stepped up its efforts to bring the benefits of energy efficiency to its customers
DEPOT            by making a 28-page ENERGY STAR educational brochure available at all of its stores. It is a strong supporter
                  of the national campaigns on appliances, "Spring Into a World of Savings"; cooling products, "Cool Your
                  World with ENERGY STAR"; and lighting "ENERGY STAR Change a Light, Change the World" all of which
                  include special displays and in-store signage. And, The Home Depot is planning a high-profile push on
                  ENERGY STAR home sealing to help its customers improve the comfort and efficiency of their homes.

SEARS            Sears sells more ENERGY STAR qualified appliances than any other retailer in addition to integrating
                  ENERGY STAR into its Home Services for HVAC and windows. By expanding its  line of ENERGY STAR
                  qualified Kenmore products and conducting  ENERGY STAR targeted promotions such as 12-month,
                  0% financing. Sears is helping bring energy efficiency to all income levels. Sears' appliance departments
                  also include a broad array of ENERGY STAR promotional materials to educate customers on the benefits
                  of ENERGY STAR, including signs and  informative collateral.
ACE HARDWARE
ACE Hardware stores are helping bring ENERGY STAR to American homes by displaying ENERGY STAR
educational materials, providing sales associate training, and clearly identifying and promoting the
ENERGY STAR qualified products they offer. Hardware stores in the ACE family allow ENERGY STAR to
reach customers in large cities and small towns across the country so everyone can benefit from lower
utility bills and cleaner air.
                  PARTNERSHIPS  FOR  HOME ENERGY  EFFICIENCY

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Selecting more energy-efficient products when making
choices for the home is an important opportunity for
consumers to reduce their home energy bills. Cost-
effective, energy-efficient choices exist for many of the
products we use daily at home, including heating and
cooling systems, major appliances, home electronics and
office equipment, and  lighting products. Many of the
smaller products offer energy savings with no additional
initial cost; for the larger products, the reduced energy bills
can quickly offset any  higher initial cost. The Partnerships
for Home Energy Efficiency will provide households with
more information on and access to cost-effective,
energy-efficient products in cooperation with retailers,
manufacturers, states,  energy efficiency program sponsors,
and many others.
                     The federal government partners
with more than 1,400 product manufacturers across more
than 40 product categories for the home to clearly
distinguish those products that are energy efficient with
the ENERGY STAR label—the government-backed symbol
for energy efficiency. This label is now recognized by more
than 60 percent of the  public, and one in three people
report using the label as part of a purchase decision in the
last year. Products earning the ENERGY STAR are 10 to 90
percent more efficient  than standard models, and the
energy bill of a home fully equipped with ENERGY STAR
qualifying products can be 20 to 30 percent lower, which
adds up to $450 in savings each year for a typical
homeowner. EPA and DOE will expand this program to
additional energy-using products in the home, work to
increase consumer awareness of the ENERGY STAR, and
help increase consumer understanding of the potential cost
savings available to them.
RETAILERS. The three federal Agencies will build on
their partnerships with national, regional, and specialty
retailers so that stores  across the country provide
consumers with clear,  credible information on cost-
effective, energy-efficient solutions for the home. It is in
stores where many people gather the information they
need to make purchase decisions. Among other efforts, the
federal government will coordinate national outreach
campaigns on key products during the seasons in which
many people make these purchases.
                   The campaigns will highlight the savings from
                   l» energy-efficient heating and cooling equipment,
                   l» energy-efficient appliances,
                   > energy-efficient lighting, both bulbs and fixtures, and
                   I* energy-efficient home electronics.
                   The federal government will further assist interested
                   retailers as they seek to expand their efforts to provide
                   broader cost-effective home energy efficiency solutions to
                   their customers. The efforts that certain national retailers
                   are undertaking as part of this partnership to provide
                   energy-efficient solutions to their customers are
                   highlighted in Table 3.
                   UTILITIES
                                          IS, Many utilities, states, and
                   other organizations across the country administer
                   residential energy efficiency programs as a cost-effective
                   means for slowing the growth in energy demand and
                   avoiding the need for new power plants, among other
                   objectives. The three federal Agencies will continue to
                   form partnerships with these organizations so that they
                   can bring clear, credible energy efficiency information and
                   services to their residential program participants and
                   spread their energy efficiency dollars further.
                                       Energy-efficient homes are more
                   comfortable and more affordable over the long term. The
                   federal government will expand its partnerships with
                   home builders to help them distinguish and sell homes
                   that are verified to be significantly more efficient than
                   homes built to code as ENERGY STAR qualifying homes.
                   In 2004, almost 10 percent of new homes were ENERGY
                   STAR qualified, and in certain markets ENERGY STAR
                   homes represent 20 or 30 percent of new housing starts.
                   In other regions of the country, however, only a few such
                   homes exist. The federal government will continue to build
                   consumer interest in energy-efficient homes through
                   current partners and expand efforts into more areas  of the
                   country. The federal government will also expand its work
                   with home builders to help them integrate cost-effective
                   building science technologies and practices into new
                   homes, while seeking to reduce energy use by close to
                   50 percent through DOE's Building America Program.
PARTNERSHIPS  FOR  HOME  ENERGY  EFFICIENCY
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                                                                    Air leaking into the house

                                                                    Air leaking out of the house
AFFORDABLE HOUSING NETWORKS.
HUD has formulated a 21-point Action Plan with
the following goal: Every building assisted,
financed, or insured by HUD will be a model of
cost-effective energy efficiency, either by qualifying
for the ENERGY STAR label for new construction
or substantial rehabilitation, by encouraging the
purchase of ENERGY STAR qualified products and
appliances, or by adopting energy-efficient
maintenance and management practices. HUD will
pursue this goal in partnership with state, local, and
federal public housing authorities, state housing
financing agencies, national intermediaries,
affordable housing developers, faith-based and
community-based organizations, and owners and
managers of assisted housing. In addition, DOE
through its R&D teams will continue to develop
and disseminate cost-effective, energy-efficient
products and building practices for affordable
homes (see the affordable housing section below).
New Energy Efficiency Services
In addition to building awareness and providing
access to information on energy-efficient products,
the three Agencies in the initiative are collaborating
with a number of organizations nationwide,
including many mentioned above, to develop new
energy efficiency services that provide homeowners
with greater opportunities for energy savings.
These cost-effective, energy-saving opportunities for
a home go beyond the choice of products and
equipment. They entail efficiency improvements to
the outer "envelope" of the home and the heating
and cooling system. Common structural or mechanical
factors  that lead to higher energy bills include
^ Air conditioning systems and heat pumps
  suffering from improper refrigerant charge,
  leading to problems that range from reduced
  operating efficiency to system freeze-up,
>• Duct leakage that adversely affects overall
  HVAC system efficiency, especially when the
  leakage occurs in unconditioned or semi-
  conditioned space,
       PARTNERSHIPS FOR  HOME  ENERGY  EFFICIENCY

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1^ Oversized cooling equipment that increases on/off
  cycling leading to poor dehumidification, and
l» Air infiltration though the home's envelope (see
  cutaway drawing of home), which leads to comfort
  problems and reduces the effectiveness of insulation.
  Under certain conditions, the influx of warm, humid air
  through a poorly sealed envelope allows water to condense
  on cool surfaces and cause moisture damage and mold.
New energy efficiency services built on best practices can
address these factors cost-effectively. Well-defined, quality
services delivered by trained professionals, which improve
the comfort of a home while reducing energy costs, could
help many households. Each year, millions of homeowners
spend billions of dollars on home renovations and
remodeling. Many more projects would deliver improved
comfort and energy savings if home contractors, remodelers,
and home professionals offered cost-effective energy
efficiency services as part of these home projects. For
example,
1^ When a furnace or central air conditioner is being
  replaced, on-site technicians can potentially seal or
  insulate the duct system at lower  cost than if this work
  were performed in isolation.
l» When siding is replaced, insulation, foam sheathing, and
  house wrap can be added underneath.
: • When an unfinished basement is converted to finished
  space, insulation can be installed in the walls and air
  leaks can be stopped.
As part of the initiative, the federal  government in
partnership with leading organizations is working to
define these services and assist in training the contractors
and others who will be offering them.
                          .. - JNG               The
federal government has already developed a training
program to help remodelers understand cost-effective,
energy-efficient remodeling. DOE's  Building America
Program will help educate remodelers, document the
energy savings, and continue to refine and promote
remodeler training. Additionally, the federal government
will develop educational materials for the banking,
appraising, and realtor sectors to help them understand
and market energy-efficient homes and services.
     FIGURE 4. HOME PERFORMANCE BENEFITS
     Many homeowners are not getting the comfort they
     are paying for. Their homes suffer from rooms that
     are too hot or too cold, drafts, moisture problems, and
     mold and mildew. Skilled contractors, under Home
     Performance with ENERGY STAR, can
     ||> Fix rooms that are too hot or too cold,
     > Eliminate drafts,
     ^ Correct conditions that lead to mold or mildew,
     > Ensure combustion appliances are venting properly,
     ^ Prevent  ice dams,
     > Solve underlying problems that lead to rot or
       peeling paint,
     *• Keep outdoor pollutants from entering the
       home, and
     l» Save energy and lower monthly utility bills.
     These improvements make a home more comfortable
     and more durable.
CRi ,  .'  ' ,'  •  "     .'"   •'• •-  '
AS! . .:  ' •  	  ,  '•  • :   .  The federal
government will work with state and local governments
and industry partners to establish new or support existing
credentialing programs to help home owners identify
quality technicians. In addition, key partners, with the
assistance of the federal government, will develop
QA/QC procedures for monitoring the work performed by
contractors. Market-wide implementation of these procedures
will help reassure home owners of the quality of the
technician's work.
r-.---;r,  -.  ....  .,:-.  __..  ,,.
I" -_•'. :. hC        ^wvLii-.i*                The federal
government will partner with leading organizations to
offer new services for the installation and verification of
heating and cooling equipment. This work will build on
best practices in the industry and the work of states,
utilities, and others that have demonstrated the cost-
effectiveness of these services. The federal government
                                    |   PARTNERSHIPS FOR  HOME ENERGY  EFFICIENCY
                                                      TT]

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                                                                                  36  1H
continues to support the North American Technician
Excellence (NATE), which tests HVAC contractors
on proper installation, maintenance, and repair or
service of heating and cooling equipment.
HOME PERFORMANCE WITH ENERGY
STAR. The federal government already is
partnering with several organizations around the
country to pilot test a home retrofit program called
Home Performance with ENERGY STAR. In it,
trained professionals provide homeowners with
detailed home energy audits and make cost-
effective recommendations to improve efficiency
and comfort of the home (see Figure 4). At the
homeowner's request, they will also make the
improvements. Work performed by these home
performance contractors is quality controlled by a
sponsoring organization, such as  a state or local
government or utility energy program. A number of
organizations have been testing this program with
significant success (see Table 4).
To further develop the services of this program so
that they become more broadly available across the
country and are attractive to the service providers
and homeowners, the federal government will
  Quantify the energy savings from these home
  energy efficiency improvements,
*• Continue to educate consumers on the cost-
  effective opportunities for improved comfort and
  energy savings through home improvement,
>• Enable the service providers to perform well by
  giving them training, credible credentials, and a
  recognized marketing platform, and
  Provide protocols for QA/QC mechanisms so
  that the service is reliable and of high quality.
BEST PRACTICE GUIDES AND PROTOCOLS
FOR REMODELERS. In recent years, home
remodeling has grown into a $200 billion dollar
industry in the United States. This growth is driven
by an aging U.S. population, aging housing stock,
strong economic growth, and growth in
homeownership. The trend toward remodeling
provides many opportunities to incorporate energy
efficiency features into remodeling jobs. For example,
  A remodeled kitchen could easily include energy-
  efficient lighting as well as ENERGY STAR
  qualified appliances.
>• A room addition could include ENERGY STAR
  qualified windows and lighting and be properly
  air sealed and insulated.
Remodelers, however, must be aware that any
changes they make to one or two rooms in the home
may adversely affect the overall heat flow and air
control for the whole home. The federal government
will work with professional groups to develop best
practices guides that show how energy efficiency
improvements may be successfully incorporated into
remodeling jobs. Lastly, the federal government is
supporting the development of technical protocols
that contractors and remodelers can use to assess the
opportunities for improving home energy efficiency
and guide the installation of recommended
improvements in a way that delivers the potential
energy savings. These protocols are designed to carry
out a key recommendation of HUD's Partnership
for Advancing Technology in  Housing (PATH)
Roadmap for Energy Efficiency in Existing Homes.
Providing guidance to remodeling contractors and
homeowners, the protocols will be developed with
significant input from remodelers, energy specialists,
consumers, and technical experts.
       PARTNERSHIPS FOR  HOME  ENERGY  EFFICIENCY


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 TABLE 4. LEADING EXAMPLES OF HOME PERFORMANCE WITH ENERGY STAR
  NEW YORK       The New York State Energy Research and Development Authority has helped improve the efficiency
                    of more than 8,000 homes through its Home Performance with ENERGY STAR program.
                    Homeowners have reaped substantial savings, and the market has accepted a comprehensive,
                    building science-based approach to improving homes. Homeowners are willing to pay for real
                    solutions, backed by quality assurance. And contractors are thus able to sustain robust businesses
                    based on delivering reliable information and quality work.
  WISCONSIN      The Wisconsin Focus on Energy program has shown that remodeling contractors can be convinced
                    of the value of bringing in third-party home performance consultants to provide recommendations
                    for, and independent validation of the quality of, energy and comfort related home improvements.
                    Wisconsin helped improve more than 1,000 homes in 2004 under Home Performance with
                    ENERGY STAR.
  AUSTIN, TEXAS
Austin Energy is enhancing its residential program by helping contractors qualify for certification
by the Building Performance Institute (BPI), thus establishing a recognizable credential for quality
home energy-related improvements. Austin's use of BPI serves as a national model for technician
certification and contractor accreditation and lends technician credibility to homeowners in the
market for retrofits. In 2004, Austin Energy's Home Performance with ENERGY STAR program helped
improve 1,350 homes.
  CALIFORNIA      In a project funded by the California Public Utility Commission, the California Building Performance
                    Contractors Association has shown that contractors can successfully deliver services that embrace
                    home performance contracting principles and practices, even in the absence of special homeowner
                    or contractor incentives or rebates. This bolsters the immediate viability of the approach on a natonal
                    scale, recognizing the federal, state, and utility support for a program can  help bring this approach to
                    market more quickly. This Home Performance with ENERGY STAR project  based in the San Francisco
                    Bay Area is anticipated to help improve more than 1,200 homes in 2005.
Financing

Fannie Mae, Freddie Mac, the Federal Housing
Administration (FHA), and other federal and state
agencies offer Energy Efficient Mortgages (EEMs) that help
homeowners finance cost-effective, energy-efficient home
improvements when they are remodeling existing homes
or help them finance the purchase of new energy-efficient
homes. The federal government will work with these
financial organizations as well as other lenders to promote
these mortgage products. Already, FHA has issued a new
Mortgagee Letter clarifying its procedures, and as part of
HUD's Energy Action Plan, it is committed to publicizing
EEMs. The initiative will also facilitate the use of attractive,
easy-access loan packages for remodeling existing homes.
Financing has proven to be important for contractors
offering whole house retrofits under Home Performance
with ENERGY STAR. These jobs typically range in cost
from $5,000 to $15,000. The availability of financing for
                                      such jobs can be pivotal in the homeowner's decision to
                                      retrofit or not. In addition, low interest rates can entice
                                      homeowners to make an energy-efficient improvement.
                                      Through its Climate Vision program, DOE will investigate
                                      the impact of lower interest rates on the inclusion of
                                      energy efficiency in remodeling projects, as well as on new
                                      home buyers' decisions to purchase energy-efficient
                                      homes.

                                      Affordable Housing

                                      The most affordable homes are those that are also energy-
                                      efficient, with lower monthly energy bills. Such a home is
                                      more comfortable and easier to maintain. It places a
                                      smaller burden on limited monthly incomes. Cost-effective
                                      energy efficiency improvements to affordable housing can
                                      either reduce demands on federal, state, and local funds
                                      where such funds are used to pay energy bills or make
                                      these funds available to more households. The initiative
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                 will build on the work being done by DOE, HUD,
                 and other agencies. DOE will continue its successful
                 Weatherization Assistance Program, which completes
                 more than 100,000 retrofits of low income houses
                 each year. DOE also is working through its Building
                 America project to design and construct Habitat for
                 Humanity houses that meet or exceed the ENERGY
                 STAR new homes specification. HUD will continue
                 to implement a wide ranging Energy Action Plan
                 to reduce energy use in the approximately 5 million
                 units of affordable housing that it subsidizes
                 or insures.
                 During the coming year, HUD is conducting
                 department-wide training on energy efficiency,
                 streamlining its energy performance contracting
                 procedures within public housing, establishing
                 ENERGY STAR as the standard for HOPE VI new
                 construction as well as housing for the elderly and
                 disabled persons through its competitive grant
                 awards. HUD also will promote the purchase of
                 ENERGY STAR qualified products wherever they
                 are cost-effective. HUD is encouraging communities
                 to adopt ENERGY STAR guidelines for new
                 construction or substantial rehab financed through
                 the HOME or CDBG programs. DOE and HUD
                 have entered into a weatherization partnership for
                 multifamily apartment buildings, and the two
                 Agencies have invested in R&D and home designs
                 that make energy efficiency more cost-effective.
                 While continuing work on these efforts, the
Agencies will explore ways to bring new energy
efficiency services such as Home Performance with
ENERGY STAR to affordable housing in partnership
with state and local organizations. EPA is working
with the Weatherization, Rehab & Asset Preservation
Partnership (WRAP) to explore ways to integrate
Home Performance with ENERGY STAR into low
income assistance programs. And, DOE will explore
other ways to improve the energy efficiency of
multifamily affordable housing.

Innovative  R&D
DOE and HUD continue to conduct robust building
science research programs. These programs already
have helped industry improve the energy efficiency
of many important household appliances,
equipment, and lighting systems; developed energy
performance improvements in building systems,
practices, and designs; and set the stage for future
energy performance gains. While most of the
research results apply to new home construction,
many of the results can be readily adapted to
existing homes. DOE's Building America Program
and HUD's PATH have demonstrated the energy
savings potential of new products and innovative
building and remodeling practices and provided the
results of their research to building professionals in
the field. DOE and HUD provide technical
assistance, training, and best practices manuals to a
range of building professionals. By linking their
Web sites for this initiative, the Agencies will
facilitate the dissemination of these research results.
DOE also will undertake policy research to explore
what steps best mobilize  action by public and
private stakeholders to invest in energy-saving
innovations in the new and existing housing
markets. Also, as part of the initiative, the federal
government is investigating performance monitoring
meters that measure the rate of household energy
consumption in real time. With such meters,
homeowners could monitor their hourly electricity
consumption rate and adjust it, given the right
incentives or under the right conditions.
| 2 o
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 KEY  MILESTONES  FOR
 PARTNERSHIPS  FOR  HOME
 ENERGY  EFFICIENCY
 Fall 2005
   National outreach on energy-efficient lighting
   National outreach on energy-efficient heating equipment and do-it-yourself
   guidance for consumers on home sealing
 >• Expansion of Home Performance with ENERGY STAR to new regions
   Revised energy efficiency specifications for ENERGY STAR new homes
   Protocols for energy-efficient remodeling of existing homes initiated
   HUD Phase II Energy Action Plan for single and mulrifamily homes initiated
 >• DOE release of HVAC Best Practices guides for home remodelers
 Winter/Spring 2006
   New accreditation standards and quality assurance criteria for home contractors
 * DOE release of 30% HVAC Best Practice Builder Guides
 ^- New ENERGY STAR guidelines for proper installation and verification of
   HVAC equipment
 >• DOE release of Energy Efficient Remodeler Training
 Summer/Fall 2006
   Fall ENERGY STAR campaigns for energy-efficient lighting, heating equipment,
   and home sealing
 ^- Expansion of Home Performance with ENERGY STAR to new regions
 >• HUD release of home improvement protocols for remodeler industry
 ^- DOE research on homes that achieve 30% whole home energy savings
   completed
 >• DOE launch of research on homes that achieve 50% whole  home energy savings
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                                        BENEFITS  OF  PARTNERSHIPS  FOR
                                        HOME  ENERGY  EFFICIENCY
                                       Many environmental and economic benefits will come from our successful efforts
                                       to improve the energy efficiency of U.S. housing. These benefits include
                                         Significant savings on energy bills,
                                       ^ Improved affordability of housing and home ownership,
                                         Avoiding the need for new electric power generation,
                                       ^- Reduced demand for natural gas and reduced natural gas price volatility,
                                         Reduced demand for electricity, and
                                       ^ Avoided emissions of air pollutants and greenhouse gases.
                                       If each household across the country were improved by 10 percent over the next
                                       decade, as a nation we would see the following results:
                                         Energy bill savings of more than $20 billion,
                                       ^ Reduced demand for natural gas of more than 1 quadrillion BTU,4
                                       ^- Reduced demand for electricity of 160 billion kilowatt hours (kWhs),
                                         Avoided need for more than 40 new electric power plants, and
                                         Avoided greenhouse gas emissions equivalent to those from 25 million vehicles.
                                       In addition, many Americans would be living in more comfortable homes.
           1 These natural gas savings include savings in direct use and savings from lower electricity demand.
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 OVERVIEW  OF COORDINATED
 AGENCY WORK  PLAN
 The coordinated Agency work plan draws on the strengths and resources of the
 U.S. Department of Energy, Department of Housing and Urban Development, and
 Environmental Protection Agency to pursue the broad objective of improving the
 access of homeowners and others to cost-effective, energy-efficient services,
 technologies, products, and practices and to continue to overcome market barriers
 to greater home energy efficiency. The work plan shows how the Agencies will
 pursue projects in the near-term, building on existing policies and programs. The
 projects are organized under the following broad areas:
 ^ Support energy service providers, contractors, and remodelers. Planned projects
   will educate and train contractors, remodelers, and home professionals to be
   successful in delivering energy efficiency to the homeowner; develop
   new credentialing and quality assurance programs; and develop new services
   that they can offer, which are backed by the ENERGY STAR program, among
   other efforts.
 !>• Educate and motivate consumers to seek cost-effective energy efficiency
   improvements. Planned projects will educate the public on the benefits of
   energy efficiency, promote cost-effective, energy-efficient products, and
   condition the marketplace for new home energy efficiency services.
 l» Continue innovative research in building science technologies, practices, and
   policies and demonstrate new product and building practices that provide
   cost-effective energy efficiency in new and existing homes.
 The schematics on the following pages provide an overview of the work planned
 by the three Agencies.
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SCHEMATICS
             JOINT INITIATIVE TO IMPROVE  THE
        ENERGY EFFICIENCY OF EXISTING  HOMES
 i.O
 7.0
 i.O
ENABLE & MOTIVATE
SERVICE PROVIDERS

Assess National Market
for Home Improvement

Identify Business Models

Develop Protocols for
Home Remodeling

Establish Information Base

Conduct Education
and Training

Establish Credentialing
Programs

Develop Award Programs


Outreach to Service Providers
  A   Expand Home Performance
      with ENERGY STAR Nationally
     EDUCATE & MOTIVATE
     CONSUMERS

     Identify and Quantify the
     Benefits of Energy Efficiency
     Improvements to Homes

     Gauge Consumer Knowledge of
2.o   the Value of Energy Efficiency

     Craft and Develop Uniform
3.0   Messages for Consumers

     Facilitate Consumer
     Knowledge of Incentives
                                                       2.O
                                                            TECHNICAL &
                                                            POLICY RESEARCH

                                                            Obtain Industry Feedback
                                                            to Identify Research Needs


                                                            Conduct Technical Research
                                                            Communicate Research Results
                                                            Broadly and Directly to Key Players
                                                            Conduct Research that
                                                            Enhances Program Effectiveness
      PARTNERSHIPS FOR HOME ENERGY EFFICIENCY

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A   ENABLE  & MOTIVATE SERVICE  PROVIDERS
                                                                                                            D = DOE     E  =  EPA    H =  HUD
       Assess National
       Market for Home
       Improvement

       Perform analysis on
       national impact
       of program (E/D/H)
 A
2.1

Assess market
transformation drivers  I
CE/D)
                                  Develop Protocols
                                  for Home Remodeling
       Develop auditing
       protocol (H/D/E)
       Develop contractor
       success stories and define I
       contractor market (E/D) I
       Develop analysis on
       the benefits to local
       sponsors (E/D)

 A
2.2
Develop contractor
business guides (E/D)
       Develop inventory
       of green building
       programs (E/D)
 A
2.3
Develop contractor
models for HVAC
and Home Sealing (E)
 A
2.4
Conduct vintage
home analysis (H)
                                  Determine motivators
                                  for allied industries (D)
 A
3-2
Develop quality
assurance audit (H/D)
 A
3.3
Review software
models (D)
 A
3-4
Review and refine
web tools (E/D/H)
                           Establish
                           Information Base

                           Promote DOE as
                           source of technical
                                                                                 4*1    information (D)
                                                                                 4.2
Promote ENERGY
STAR solutions (E/D)
Research how industry
learns information
(E/D/H)
                                                                Outreach to Building
                                                                America Network (D)
                           Conduct Education
                           and Training

                           Develop materials
                           for architecture and
                           engineering programs (D)
 A
5.2
Pilot appraiser
training (E)
 A
5.3
Work with retailers to
develop training for
subcontractors for in-
house staff and external
contractors (E/D)
       Develop
       Award Programs

       Promote ENERGY
       STAR Awards program
7*1    (E/D)

 ^    Develop state and
    -   locally based recognition
7.2    programs (D)

       Promote Solar
       Decathlon Awards (D)
                                                                                                                   Develop materials for
                                                                                                                   remodelers, realtors,
                                                                                                                   financial institutions
                                                                                                                   (EEMs), and home
                                                                                                                   energy raters (D/E)
                                                                                 Promote EnergyValue
                                                                                 Housing Awards program
                                                                                 for builders (D)
                                                                                                                                  Expand Home Performance with
                                                                                                                                  ENERGY STAR Nationally

                                                                                                                                  Provide on-going support of state
                                                                                                                                  and local Home Performance with
                                                                                                                                  ENERGY STAR Programs (E/D/H)

                                                                                                                                  Recruit additional Home
                                                                                                                                  Performance with ENERGY STAR
                                                                                                                            i.2    sponsors (D/E/H)
                                                              |     PARTNERSHIPS   FOR   HOME   ENERGY  EFFICIENCY
                                                                                                                                                               TT]

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B    EDUCATE &  MOTIVATE CONSUMERS
1.1
                                                                    D = DOE   E = EPA    H = HUD
      Identify and Quantify the
      Benefits of Energy Efficiency
      Improvements to Homes

      Research monetized value
      of energy efficiency (E/D/H)
      Gauge Consumer Knowledge of
      the Value of Energy Efficiency
      Survey recognition of energy
      efficiency annually (E/D)

     Craft and Develop Uniform
     Messages for Consumers

     Develop and promote Energy
     Efficiency in Homes PSA (D/E/H)
                                                                                                              4.1
                                     Facilitate Consumer
                                     Knowledge of Incentives
                                     Promote awareness and
                                     availability of EEMs (E/D/H)
1.2
      Assess non-energy benefits of energy
      efficiency improvements (E/D/H)
      Compile case studies on
      completed retrofit work (D/E/H)

      Assess value of energy efficiency
      in low-income housing (H)
      Conduct literature search on
2.2   consumer choice models (H)

      Compile and evaluate information
      from existing consumer surveys
2-3   (E/D/H)
     Implement ENERGY STAR regional
   I  and seasonal campaigns (E/D)

     Develc
     strateg
'
                                     Post state-by-state information
                                     on financial incentives on
                                     web sites (E/D)
Develop future communication
strategies (E/D/H)
Incorporate tax credit information
in program materials (D/H/E)
 B
      Survey of home buyers and how
      they value energy features (D)
     Develop communications
     targeting low-moderate income
     home owners (H/E/D)
                                     Convene workshop to develop
                                     easy-to-use financing for home
                                     improvements (E/D)
     Develop and implement
     outreach strategy for ENERGY
     STAR Home Sealing (E)
     Develop and implement
     outreach strategy for HVAC
     quality installation (E)

     Continue ENERGY STAR
     retailer campaigns (E/D)
                                                                                Convene working group
                                                                                with NGOs to discuss future
                                                                                communication strategies (E/D/H)
                                                                                Promote Energy Savers
                                                                                revised publications (D)
                                                                                Promote consumer fact sheets
                                                                                through agency clearinghouses,
                                                                                web site, conferences, etc. (D/E/H)
                                                                                Develop clearinghouse web page
                                                                                (D/E/H)
                                                                                                               B
                                                                                                              4.5
                                                                                Develop revolving loan model
                                                                                (E/H/D)
                          PARTNERSHIPS  FOR  HOME   ENERGY   EFFICIENCY

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C    TECHNICAL &  POLICY RESEARCH
                                                                                                  D = DOE    E = EPA    H = HUD
      Obtain Industry Feedback
      to Identify Research Needs
l.l
                                     Conduct Technical Research
Review recommendations in June
2002 PATH Report "Volume 1:
Technology Brainstorming" (H/D)
Determine applicability of energy
efficiency strategies for new
homes to existing homes (D)
Communicate Research
Results Broadly and Directly
to Key Players

Present findings at conferences
(D/E/H)
                                                                                                              4.1
  jnduct Research that
Enhances Program Effectiveness

Identify and involve missing players
to fill product systems gaps (D)
1.2
Conduct sessions at conferences
to develop list of potential
research projects(H/D)
                                     2.2
                                           Determine unique needs for
                                           existing homes (D)
                                                                         3.2
                                     Post results of research on
                                     web sites and commercially
                                     available documents (E/D/H)
                                     Validate component and whole
                                     house energy efficiency via
                                     monitoring (D)
Refine systems research on
whole house model (D)
                                                                                Include results of research into
                                                                                materials for service providers,
                                                                                consumers, and other key players
                                                                                (D/E/H)
                                                                         Incorporate research results into
                                                                         educational and training materials
                                                                         and programs and certification
                                                                         processes (D)
                                                                                                              Policy analysis on transaction chain
                                                                                                              involved in home improvement.
                                                                                                              Develop, test, and evaluate options
                                                                                                              that affect chain in NY, TX, and
                                                                                                              CA(D)
                                                                                                                    Evaluate overall effectiveness
                                                                                                                    of transaction chain process (D)
                                                                                                              4-4
                                                                                                                    Develop specifications for
                                                                                                                    new products (D)
                                                                                                                    Develop and disseminate report
                                                                                                                    on research results (D)
                                                |   PARTNERSHIPS  FOR  HOME  ENERGY  EFFICIENCY
                                                                                                                                         TT]

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                 REFERENCES
                 National Energy Policy Development Group. 2001. National Energy Policy. May. Available online at
                 http://www.energy.gov/engine/doe/files/dynamic/1952003121758_national_energy_policy.pdf

                 U.S. Environmental Protection Agency (U.S. EPA). 2004. Protecting the Environment—Together. ENERGY STAR
                 and Other Voluntary Programs. 2003 Annual Report. Climate Protection Partnerships Division. September.
                 (EPA 430-R-04-011). Available online at http://www.epa.gov/appdstar/annualreports/annualreports.htm

                 U.S. EPA. 2005. Inventory of Greenhouse Gas Emissions and Sinks: 1990-2003. Office of Atmospheric Programs.
                 April. (EPA 430-R-05-003). Available online at
                 http://yosemite.epa.gov/oar/globalwarirung.nsf/content/ResourceCenterPublicauonsGHGErnissions.html

                 U.S. Department of Energy, Energy Information Administration (U.S. DOE, EIA). 2001. Residential Energy
                 Consumption Survey. Available online at http://www.eia.doe.gov/emeu/recs/contents.html

                 U.S. DOE, EIA. 2004. Annual Energy Outlook 2004 with Projections to 2025. Office of Integrated Analysis and
                 Forecasting. January. (DOE/EIA-0383(2004)). Available online at http://www.eia.doe.gov/oiaf/aeo/

                 U.S. DOE, EIA. 2005. Annual Energy Outlook 2005 with Projections to 2025. Office of Integrated Analysis and
                 Forecasting. January. (DOE/EIA-0383(2005)). Available online at http://www.eia.doe.gov/oiaf/aeo/

                 U.S. Department of Housing and Urban Development (HUD). 2003. PATH Technology Roadmap: Energy
                 Efficiency in Existing Homes. Office of Policy Development and Research. October. (Volume Three: Prioritized
                 Action Plan).
|28    I                 PARTNERSHIPS  FOR HOME  ENERGY  EFFICIENCY

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