ENERGY STAR® for New Homes
Sponsor and Utility Partner Guide
Appendices
A.	ENERGY STAR Qualified Homes Utility/Sponsor Fact Sheet
B.	First Annual ENERGY STAR Residential Program Sponsor and Utility Partner Meeting
a.	Agenda
b.	Presentations: Program Design
c.	Presentations: Marketing and Implementation
d.	Presentations: Evaluation
e.	Priority Ranking Feedback: Best Practices and Lessons Learned
C.	WECC Homeowner Manual
D.	2006 North Carolina ENERGY STAR Conference Agenda

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Appendix A
ENERGY STAR Qualified Homes Utility/Sponsor Fact Sheet

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ENERGY STAR® for New Homes: A Proven Solution for Reducing
Peak Demand and Improving Energy Efficiency in New Homes
The U.S. Environmental Protection Agency (EPA) is partnering with thousands of
builders nationwide to adopt energy-efficient technologies and "off the shelf" building
practices that enable the homes they build to qualify for the ENERGY STAR. This
complements the U.S. Department of Energy's (DOE's) Building America Research
Program that works with a select group of builders and funded research teams to
develop new techniques and products for the housing industry. ENERGY STAR
qualified homes are at least 15 to 20 percent more efficient than prevailing energy code,
and include additional energy-saving features that typically make them 20 to 30 percent
more efficient than standard homes. The ENERGY STAR for New Homes program can
be a cost-effective addition to an energy-efficiency program portfolio addressing
homeowner needs to reduce energy costs and improve the health, comfort and
durability of their homes, while simultaneously reducing energy demand. Demand
savings vary widely with size, location, and orientation, but homes built to ENERGY
STAR performance levels have been estimated to reduce peak demand by
approximately 0.5-1.5 kW.
ENERGY STAR FOR NEW HOMES DELIVERS RESULTS
The stock of ENERGY STAR qualified homes has grown
exponentially since the program's inception in 1996. By the end of
2006:
•	Over 3,500 partners—including more than half of the nation's
100 largest builders—were voluntarily constructing homes to
ENERGY STAR performance levels;
•	Nearly 12 percent of all new homes nationwide were
constructed to meet ENERGY STAR specifications, including
over 25 major metropolitan areas and states with 20 percent
or greater market penetration; and
•	Over 700,000 homes earned the ENERGY STAR.
As a whole, ENERGY STAR qualified homes are saving American
homeowners nearly 180 million dollars on utility bills, including over
one billion kWh of electricity and 100 million therms of natural gas.
HOW ENERGY STAR FOR NEW HOMES WORKS
ENERGY STAR makes it easy for homebuyers to select homes that
are much more energy-efficient than standard code and verified by
an independent third-party. For builders, ENERGY STAR provides a
widely recognized label of excellence that distinguishes the energy
It is estimated that
almost 1.4 million
single-family new
homes will be
constructed in the
United States in
2007, according to
the National
Association of
Home Builders
(NAHB).
With a life
expectancy for
homes to serve
many generations,
a huge opportunity
exists for
persistent energy
and peak demand
savings. These
savings can be
squandered if
homes are not
constructed energy
efficiently as many
energy-efficiency
measures cannot
be added cost-
effectively after a
home is already
built.
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performance of their homes and helps reduce liability through the increased rigor of the
energy-efficiency measures and additional subcontractor supervision.
ENERGY STAR technical requirements are developed by EPA based on extensive
experience with the nation's home-building industry, detailed computer simulations, and
a public review process with the home-building-industry stakeholders and Home Energy
Rating System (HERS) industry. In 2006, EPA introduced new specifications for
ENERGY STAR qualified homes. A home can qualify as ENERGY STAR using a
performance path based on a maximum HERS Index Score, or a prescriptive path using
an EPA-developed Builder Option Package (BOP).
The performance path threshold is referenced to a HERS Index rating system where a
score of '100' approximates a 2004 International Energy Conservation Code (IECC)
home and a score of '0' is a zero-energy home consuming no net energy. Each point
below 100 represents a one-percent improvement in energy efficiency. The HERS Index
threshold for ENERGY STAR qualified homes is 85 in the southern two-thirds of the
country, or about 15 percent more energy-efficient than the reference home, and 80 in
the northern one-third of the country, or about 20 percent more energy-efficient than the
reference home. Mandatory requirements for air barrier details and right-sizing of
cooling equipment contribute to the energy and peak savings.
The prescriptive path threshold provides a set of construction specifications that enable
a home to qualify for the ENERGY STAR. These specifications are provided on one
national BOP, or for convenience, on county-specific BOPs with detailed climate-
specific requirements.
To qualify as ENERGY STAR, a home must be built to all requirements identified in a
HERS plan analysis or appropriate BOP. Then, all these requirements must be field
verified by a certified HERS rater who inspects and tests the home. For large
subdivisions, a sampling protocol can be used for field verification with considerable
cost savings.
EPA has developed separate program requirements for manufactured homes built to
U.S. Department of Housing and Urban Development (HUD) requirements. This
includes a unique verification protocol incorporating quality control processes already
included in HUD code homes manufacturing plants.
HOW ENERGY-EFFICIENCY PROGRAM SPONSORS (EEPS) WORK WITH
ENERGY STAR FOR NEW HOMES
In many markets, energy-efficiency program administrators can and do play a valuable
role in accelerating the adoption of ENERGY STAR for New Homes and related
business practices. The markets that are the strongest candidates for efficiency
program sponsorship can experience one or more of the following barriers to energy-
efficient building practices:
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•	Underdeveloped network of certified HERS raters;
•	Building energy codes lagging far behind prevailing national building codes; and
•	Builders not exposed to ENERGY STAR business strategies.
The following programs demonstrate how some energy-efficiency program
administrators have developed effective regional solutions to help overcome some of
these barriers to transform residential new construction and deliver ENERGY STAR
qualified homes to a market.
CenterPoint Energy and Oncor Electric Delivery, Texas: Joining forces in Houston
and Dallas respectively, these two utilities realized at the outset that their markets were
dominated by large production builders. For both utilities it was critical in their markets
to expand the HERS verification infrastructure and effectively market the benefits of
energy efficiency to consumers. Both CenterPoint and Oncor implemented ENERGY
STAR for New Homes with extensive efforts to recruit HERS providers in their
respective markets, a rebate to builders, and a strong advertising campaign educating
local home buyers about the benefits of ENERGY STAR qualified homes. As a result of
their efforts, Dallas and Houston have approximately 50 percent market penetration for
ENERGY STAR qualified homes for single-family and multi-family homes with fewer
than four units.
New York State Energy Research and Development Authority (NYSERDA), New
York: Transforming the home building industry in upstate New York presented
substantial challenges for NYSERDA. This industry was dominated by widely-dispersed,
hard to reach small- and mid-size regional builders. NYSERDA responded by
developing a strong HERS industry across the targeted upstate New York region,
providing extensive training to home builders, offering substantial rebates, and
implementing an effective regional marketing campaign conveying the benefits of
energy efficiency. Today, market penetration in New York's geographically dispersed
market is over 10 percent and ENERGY STAR for New Homes is positioned for strong
continued growth.
Las Vegas ENERGY STAR Partners, Nevada: A dedicated group of builders, utilities,
HERS raters, and local home-building marketing professionals formed an alliance to
promote ENERGY STAR qualified homes. This group has effectively implemented
outreach campaigns advertising the benefits of ENERGY STAR to Las Vegas
homebuyers, and worked together to develop and disseminate on-site marketing
materials. They also provided technical and marketing training and promoted the results
of their efforts to the industry-at-large at local builder conferences. As a result,
consumer awareness for ENERGY STAR qualified homes is estimated at 90 percent
and nearly 70 percent of all homes in Las Vegas earn the ENERGY STAR without any
monetary incentives. Programs have succeeded in the past without rebates in other
markets, such as in the Phoenix metro area (currently over 30 percent market
penetration) and Indianapolis (nearly 10 percent market penetration) where, like Las
Vegas, a strong champion (individual or group) effectively promoted the ENERGY
STAR for New Homes program.
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PROGRAM DESIGN AND IMPLEMENTATION
Before designing a new homes program, it's important to recognize key barriers to the
adoption of energy-efficiency technologies in the home building industry. These barriers
include:
High Cost: As with many industries, home builder decision-making is extremely
focused on initial production costs in order to maintain affordability and to meet real
estate agent and home buyer expectations regarding value on a cost-per-square-
footage basis. This approach undervalues the utility bill savings and improved comfort,
durability and indoor air quality delivered by energy-efficiency improvements.
Lack of Consumer Demand: The home-buying process is often overwhelming for
consumers. There are so many critical attributes to consider, including quality of
construction, adequate space and storage, preferred designs, maintenance
requirements, quality of the local schools, proximity to work, family, and friends, and
more. What is often under-appreciated is how energy-efficient homes can substantially
reduce ownership and maintenance costs while delivering improved comfort, durability,
and indoor air quality, while protecting future value. Consumers need a quick simple
way to include energy efficiency among their many other considerations.
Lack of Sales Skills: While energy-efficient homes deliver impressive operating cost
and performance advantages, this value is invisible to the average home buyer during a
home walk-through. In contrast, other desired design features such as architectural
appearance, finishes, and layout are highly visible. The typical real estate agent and
builder sales professional has not been trained to sell the benefits of energy efficiency,
yet they provide homebuyers most of their housing purchase information.
Industry Resistance to Change: Home builders are reluctant to adopt new
technologies and construction practices because they are already confronted with so
many changes that affect their business: updated codes and standards; cost and
availability of land, labor and material; evolving architectural and material design trends;
mortgage rate fluctuation; cost and availability of insurance; and underlying economic
conditions that affecting the housing market. Moreover, the industry has been widely
exposed to the risks of change where new technologies did not meet consumer
expectations (e.g., early heat pumps) or led to building failures (e.g., exterior insulation
finish systems).
Lack of Technical Infrastructure: Energy-efficient construction requires specialized
building materials, construction practices, and quality-assurance programs. Often this
technical infrastructure is not fully developed, including distributors stocking key
products (e.g., energy efficient windows and equipment), vendors with trained crews
(e.g., installation of high-performance building envelope systems and tight ducts), and
HERS raters to verify home construction meets program specifications.
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An effective ENERGY STAR for New Homes
program must address these key market
barriers and effectively bring forward the strong
business case for builders to construct energy-
efficient homes (see sidebar on this page).
Regardless of the final strategy chosen, EPA
recommends a number of critical elements be
emphasized during program development.
First, it is essential to ensure the presence of a
HERS verification infrastructure, and to
develop and nurture it where not fully mature.
Second, sales training and tools are extremely
important to promote the benefits of energy-
efficient homes. This is because builder sales
teams are focused on promoting features you
can see as opposed to energy-efficiency
features and benefits that cannot be seen.
Lastly, investments in effective marketing are
crucial both to educate consumers and to help
secure builder confidence in the program. With
all of the program elements in place,
sponsoring organizations, such as utilities, can
have greater confidence their program will be
successful and enjoy a built-in exit strategy.
The influence of the ENERGY STAR brand
and EPA program support allows for the
continuation of the market transformation
process even after regional programs are
ramped down or phased out.
ENERGY STAR SUPPORT
EPA has developed a variety of proven off-the-
shelf tools to help utilities start and implement
ENERGY STAR qualified homes. These
include:
• Established Brand - More than 65% of
American households recognize the
ENERGY STAR. Awareness is even
greater - 75% - in areas where energy-
efficiency program sponsors are actively
promoting ENERGY STAR.
FOUR STEPS TO START A PROGRAM
Step 1: Conduct Market Research.
Consult national home builder publications for
annual reports on top builders in your regions,
including housing starts, predominant builder
size, type, and geographic distribution, and
growth forecasts. Additional research is needed
to establish regional availability of key energy-
efficiency technologies (e.g., high-efficiency
equipment, windows) and construction
practices (insulation installation quality, HVAC
duct sealing). Lastly, it is important to
understand the rigor of the prevailing energy
code and how effectively it is enforced.
Step 2: Assess the Local HERS Infrastructure.
HERS providers and raters are essential third
parties who verify homes as ENERGY STAR.
Some programs needed to establish a strong
HERS network while working with builders to
construct ENERGY STAR homes. Consult the
RESNET web site for a listing of all providers
nationwide (www.natresnet.org).
Step 3: Benchmark Construction Practices.
Work with HERS rating industry to benchmark
current construction practices. Evaluate
availability of key energy-efficient technologies
and construction practices and their cost; and
identify regional health and durability issues.
Step 4: Design Program.
Based on research and other program
objectives (e.g., health, durability, safety),
determine final program design including
technical requirements; best mix of incentives;
marketing support; technical support; program
delivery; and monitoring and evaluation. A key
part of this process will be to develop sales and
marketing tools. Use local marketing
consultants specializing in the housing
industry and in-house resources to research
key marketing messages that resonate with
local home buyers (e.g., energy costs, quality,
comfort, health concerns); identify how to
effectively attract home buyers using
advertising, marketing materials, and displays;
and develop sales training.
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•	Cost-Effective Specifications - Over a decade of experience and extensive
industry input have been utilized to develop a technical threshold that helps
ensure meaningful energy and peak demand savings conducive with home
builder construction practices and constraints.
•	Technical Support - A strong technical team at EPA provides guidance for
implementing technical specifications and assists in developing regional
variations. In addition, a comprehensive Thermal Bypass Checklist Builder Guide
serves as an excellent reference for meeting new program requirements.
•	Marketing Tools - EPA provides valuable marketing tools that have been
extensively improved and refined based on partner feedback. These include:
o ENERGY STAR Mark (licensed for free to all partners);
o ENERGY STAR Marketing Toolkit allows each builder partner to produce
within minutes a wide variety of point-of-sale flyers, web tools, and display
cards customized with their name, logo, web site, preferred text, and
images;
o Annual ENERGY STAR Outreach Campaign leverages partner and EPA
contributions in a coordinated consumer education effort with promotions
tailored to regional mass market opportunities such as local newspaper
real-estate sections, new homes guides, and radio;
o ENERGY STAR Brochures for consumers, builders, and manufactured
housing plants bring forward compelling benefits of buying and building
energy-efficient homes;
o ENERGY STAR Consumer Fact Sheets effectively explain the features
and benefits of energy-efficient homes; and
o ENERGY STAR Sales Training presentations help train builder sales staff
and real estate agents on how to effectively sell energy-efficient homes.
MEASUREMENT AND EVALUATION
There are a number of metrics that are important to track to ensure key savings and
peak-load-reduction targets are being met. These can include:
•	Number of ENERGY STAR builder partners;
•	Number of ENERGY STAR qualified homes;
•	Field evaluations of the HERS verification process;
•	Assessments of actual utility bills for qualified and control homes; and
•	Measurements of peak energy-use for qualified and control homes.
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Further breakdowns could compare relative performance of different geographic
regions, market segments (e.g., affordable, entry-level, move-up, luxury) and housing
types (e.g., single-family, multi-family, manufactured housing).
There are other metrics that are also important to evaluate which can help improve the
program and reduce the cost of implementation. These include:
•	Builder satisfaction with program services;
•	Quantity of incentives and tools utilized;
•	Measurement of consumer awareness before and after program marketing;
•	Number of web-site visits and most-used pages;
•	Relative effectiveness of different marketing tools (e.g., television, radio, print,
and billboard advertising; bill inserts);
•	Leveraged media coverage;
•	Effectiveness of promotions (e.g., trade-show booths, coupon books); and
•	Number and type of consumer complaints.
When planning measurement and evaluation activities, recognize that the HERS
certification process includes oversight by the Residential Energy Services Network
(RESNET). RESNET can be contacted to explore how to leverage results from their
quality-assurance efforts.
COST EFFECTIVENESS
To assess cost-effectiveness, it is often easiest to identify estimated savings for a
typical ENERGY STAR qualified home and then multiply the unit savings by the number
of qualified homes. Energy-savings-analysis inputs used by EPA based on the new
ENERGY STAR specifications are 2,030 kWh plus 131 therms for a 2,000 square foot
home with electric cooling and gas heating, or approximately 3,500 kWh for an all-
electric home. EPA also estimates approximately 1kW peak demand reduction per
house. These values are only illustrative and will vary with geographic location and
housing configuration. More refined analysis is often completed to assess the potential
cost-effectiveness of a program for a particular service territory.
Cost-effectiveness has been documented by many of the more than 50 regional
sponsors around the country implementing ENERGY STAR for New Homes. Using
reported expenditures and program savings, the levelized cost of conserved energy was
calculated for various utilities, assuming a 6% discount rate and lifetime of 18 years.
Costs ranged from $0.01-0.08 / kWh in hot and mixed climates, where a majority of
ENERGY STAR qualified homes are constructed, and increased in cold climates, such
as in Minnesota and Wisconsin, due to non-electric heating and little to no cooling load.
Note that ENERGY STAR qualified homes deliver both electricity savings and heating
fuel savings. Thus, for programs with integrated electric and gas savings, the cost
effectiveness will be even higher. Non-energy benefits such as improved comfort,
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indoor air quality, and durability should not be overlooked because they address many
key homebuyer concerns that add to the value of a home.
RESOURCES FOR ADDITIONAL INFORMATION
¦	ENERGY STAR for New Homes Web Site: www.eneravstar.gov/homes
¦	RESNET Web Site: www.natresnet.org
¦	U.S. DOE Building America Web Site:
www.eere.energy.gov/buildings/building america
¦	ENERGY STAR for New Homes Regional Web Sites:
o New England: www.energystarhomes.com
o Houston: www.houstonenergystarhomes.com
o Dallas: www.myenergystarhome.com
o Las Vegas: www.nevadaenergystarhomes.com
o Phoenix: arizonaenergystarhomes.com
o Pacific Northwest: www.peci.org/programs/eshnw.htm
o Indianapolis: www, energystarhomesmidwest. com/test/index, htm I
o New Jersey: www.nienergystarhomes.com
Colorado: www.e-star.com/coloradoenergystarhomes
o California:
www.pge.com/res/energy tools resources/efficient new homes/index, htm I
www.sce.com/rebatesandsavings/builderandbuver/energystarhomesprogram
www.socalgas.com/construction/ahp/
SOURCES
¦	Meisegeier, David; Howes, Matt; King, Doug; Hall, John D., "Potential
Peak Load Reductions from Residential Energy Efficiency Upgrades." 13th
Symposium on Improving Building Systems in Hot and Humid Climates. San
Antonio, TX: Texas Building Energy Institute, 2002.
¦	US Census Bureau News - New Residential Construction in June 2007. Last
updated: September 2007.
¦	EPA Office of Air and Radiation, Climate Protection Partnerships Division. National
Awareness of ENERGY STAR for 2006: Analysis of 2006 CEE Household Survey.
U.S. EPA, 2007.
¦	NAHB. The Housing Downswing Still Has Some Distance to Run. June 20, 2007.
www.nahbmondav.com/eveonecon/issues/2008-06-2Q.html.
¦	LIPA Clean Energy Initiative Report: www.lipower.org/pdfs/cei/vbdocument.pdf
¦	ACEEE, America's Best: Profiles of America's Leading Energy Efficiency
Programs. (2003) http://aceee.org/utilitv/5destarhmswi.pdf
¦	2006 CIP report filed with MN eDockets. Program web page:
http://www.xcelenergy.eom/XLWEB/CDA/0.3080.1 -1 -4 4531 8437 10607-9234-
5 538 969-0.00. htm I
¦	PUC Filing for TXU Electric Delivery Company. "Annual Energy Efficiency Report
To The Public Utility Commission of Texas In Accordance With Substantive Rule §
25.181(h)(4) and § 25.183(d)(2),(3)"
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http://interchange.puc.state.tx. us/WebApp/lnterchange/application/dbapps/filings/p
gSearch.asp. Project Number 33884.
¦	PUC Filing for Entergy Gulf States, Inc.. "Annual Energy Efficiency Report For
Calendar Year 2006"
http://interchange.puc.state.tx. us/WebApp/lnterchange/application/dbapps/filings/p
gSearch.asp. Project Number 33884.
¦	PUC Filing for CenterPoint Energy. "Annual Energy Efficiency Report Substantive
Rule § 25.181(h)(4)"
http://interchange.puc.state.tx. us/WebApp/lnterchange/application/dbapps/filings/p
gSearch.asp. Project Number 33884.
¦	CL&P and Ul Conservation and Load Management Plan 2007-2008
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Appendix B
First Annual ENERGY STAR Residential Program
Sponsor and Utility Partner Meeting
a.	Agenda
b.	Presentations: Program Design
Developing a HERS Infrastructure
Reaching a Dispersed Builder Audience
Incentive Options
Augmenting Builder Skills with Technical Training/Education
c.	Presentations: Marketing and Implementation
Advertising, Promotions, and Awards
Engaging the Market
ENERGY STAR Homes Summit
Builder Seminars/Recruiting
d.	Presentations: Program Evaluation
Quality Control Monitoring/Evaluations
AEC Research Field Study
Outreach Campaign Evaluation
California Utilities Evaluation Studies
e. Priority Ranking Feedback: Best Practices and Lessons Learned

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ENERGY STAR® Residential Program
Sponsor and Utility Partner Meeting
Location: Georgia Tech Hotel and Conference Center, Atlanta, GA
Date: April 26-27, 2007
Purpose of Meeting:
ENERGY STAR for Homes is being implemented by over thirty different utility and state
administered programs across the country. As should be expected, there is a
tremendous variation for program design, implementation and evaluation. Much of this
variation is in response to regional characteristics (e.g., types of builders, geographic
concentration of builders, available HERS infrastructure, consumer awareness, etc.),
and much of it reflects preferences of program staff. EPA is inviting key decision-makers
from these sponsored programs to share ideas and lessons learned, and upon review of
this information to develop agreements on best practices for implementing ENERGY
STAR for Homes.
Desired Outcome:
•	List of regional factors to be considered for implementation
•	List of lessons learned for program design
•	List of best practice recommendations for program design
•	List of lessons learned for program marketing and implementation
•	List of best practice recommendations for program marketing and implementation
•	List of lessons learned for program evaluation
•	List of best practice recommendations for program evaluation
•	After the meeting, EPA will assemble feedback from group into a 'Best Practices'
report to be distributed to all attendees.
Meeting Strategy:
Presentations showcasing success stories implementing ENERGY STAR for Homes will
be followed by facilitated discussion bringing in group experience and consensus on
best practices.

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AGENDA
Time
What
How
DAY ONE - April 26
8:00 am - 8:15 am
Introductions
Around the Room
8:15 am - 8:30 am
Meeting Review
Sam Rashkin, EPA
ENERGY STAR for Home Program Design Strategies
8:30 am - 10:00 am
Success Stories:
Presentations:

• TXU/CenterPoint: Developing a HERS
Infrastructure
Brian Smith, ICF (with Price
Robertson, TXU)

• NYSERDA: Reaching a Dispersed Builder
Audience
Andrew Fisk, NYSERDA

• Incentive Options: Comparison of
Program Incentives
Stacey Patmore, EPA

• Wisconsin: Augmenting Builder Skills
With Technical Training, Education
Greg Nahn, WECC
10:00 am - 10:30 am
Regional Factors for Program Design
Brainstorm
10:30 am - 10:45 am
BREAK

10:45 am - 11:15 am
Program Design Strategies Lessons Learned
Brainstorm
11:15 am- 12:00 pm
Best Practice Recommendations
Consensus or N/3
12:00 pm - 1:00 pm
LUNCH

ENERGY STAR for Homes Marketing and Implementation
1:00 pm-2:30 pm
Success Stories:
Presentations:

• TXU/CenterPoint:
Brian Smith, ICF

Advertising, Promotions and Awards


• Pacific Northwest:
Anne Brink, NEEA (with Kendall

Engaging the Market
• North Carolina State Energy Office:
Youngblood, Energy Trust of
Oregon)
Laurel Elam, Appalachian State

ENERGY STAR Homes Summit
University

• Rocky Mountain Power:
Blake Howell, Rocky Mountain

Builder Seminars/Recruiting
Power
2:30 pm - 3:15 pm
Mktg./lmplementation Lessons Learned
Brainstorm
3:15 pm - 3:30 pm
BREAK

3:30 pm - 4:15 pm
Best Practice Recommendations
Consensus or N/3
DAY TWO - April 27
8:00 am - 8:20 am
Day One Review
Sam Rashkin, EPA
ENERGY STAR for Homes Evaluation
8:20 am - 9:50 am
Success Stories:
Presentations:

• TXU: Quality Control
Brian Smith, ICF

Monitoring/Evaluations
• AEC Research Field Study
Colby Swanson, AEC

•	Las Vegas Partners: Outreach Campaign
Evaluation
•	California Utilities Evaluation Studies
Paulette McGhie, NV ENERGY
STAR Partners/Energy
Inspectors
Robert Kasman, PG&E
9:50 am - 10:00 am
BREAK

10:00 am - 11:30 am
Evaluation Lessons Learned
Brainstorm
11:30 am - 12:00 pm
Best Practice Recommendations
Consensus or N/3
12:00 pm - 1:00 pm
LUNCH

Wrap-up
1:00 pm - 1:30 pm
Meeting Review
(What Worked/Improved, Next Steps)
Discussion
1:30 pm	Adjourn

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INTERNATIONAL
Developing a
HERS Rating infrastructure
ENERGY STAR® for New Homes Utility Stakeholder Meeting
April 26 -27, 2007
Presented by
Price Robertson
Manager, Energy Efficiency Programs
Oncor Electric Delivery Company
Brian Preston Smith
Project Manager
ICF International
	 	 	 		- ..........icf
Outline
Background
Overview of HERS Rating Infrastructure
Why a Market-based Infrastructure was Selected
Steps Taken to Establish
Advantages
Disadvantages
Program Results
Lessons Learned
			ICF
Background - Texas Electric Choice Act	—'
Utility Deregulation
Load Growth Management
Energy efficiency programs
funded by rate payers
ENERGY STAR Homes
Program sponsored by lOU's:
-	Center Point Energy
-	Entergy
-	Oncor Electric Delivery Company
(Formally TXU Electric Delivery)
Texas New Mexico Power
Background - Service Territories
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Oncor's Service Territory	"'™'
Large geographic area
More than 47,000 new homes completed each year in service
territory
Diverse markets comprised of large metropolitan areas (Dallas and
Ft. Worth) and small towns (Waco, Tyler)
Majority of homebuilders complete 100+ homes per year
- Some complete more than 1,000 per year
Homebuilders are extremely competitive on price and luxurious
amenities
Overview of HERS Rating Industry
Consists of HERS Rating Providers and HERS Raters
Must complete 40 hour Residential Energy Services Network
(RESNET) approved accreditation training
RESNET accredits HERS Rating Providers
HERS Rating Providers are responsible for certifying HERS Raters
Only HERS Rating Providers can verify homes meet ENERGY STAR
guidelines and print ENERGY STAR certificates
Overview of HERS Rating Industry	—™
Comparison of Services offered by HERS Rating Providers and HERS Raters:
Services
HERS Rating
Provider
HERS Rater
Plan Analysis
YES
YES
Technical assistance to achieve
ENERGY STAR guidelines
YES
YES
On-site inspection (Blower Door and
Duct Blaster)
YES
YES
ENERGY STAR Verification
YES
NO
Printing ENERGY STAR certificates
YES
NO
HERS Rating Models	—™
Single Administrator/I m pie me nter.
The utility, state agency, or program administrator provides all the services of a
HERS Rater and Rating Provider to verify home performance.
Program typically covers all of the costs associated with verification.
Single HERS Rating Provider.
Either a non-profit organization, company, state agency designated as the
program's "preferred" rating provider.
Can include multiple HERS Rater companies competing to provide on-site
testing services, or, the preferred provider conducting all services.
Ho me builder typically covers the costs associated with verification.
Competitive. Market-based Rating Infrastructure.
Multiple HERS Rating Providers and HERS Raters competing in the market to
provide verification services to homebuilders participating in the program.
Ho me builder typically covers all of the costs associated with verification.
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!ICF
Why a Market-Based Approach?
Aggressive energy efficiency goals
-	Goal of 7,400 kW and 24,600 MWh during first year
Needed to offer through entire service territor
-	88 counties and 372 cities
-	Approximately 45,000 new homes built annually
A competitive, market-based HERS rating infrastructure was viewed by
Oncor and ICF as a solution to rapidly establish and expand the
program to achieve aggressive goals
Steps Taken to Establish Infrastructure
Sponsored HERS Rater trainings to quickly deliver accredited Raters to
the market
- 11 trainings delivered, more than 160 trained
Offered scholarships for individuals in remote areas of service territory
to attend HERS Rater trainings
Delivered trainings on how to become an accredited HERS Rating
Provider and own and operate a successful rating business
Provided turnkey tools for raters to market and sell home verification
services to homebuilders
Guided raters through the process of becoming an accredited HERS
Rating Provider
Established the Texas Home Energy Organization
!iof
Advantages
Quickly Established Infrastructure Needed to Support Program
-	15 HERS Rating Providers and 164 certified HERS Raters during first four years
Reduced Capital Costs and Operating Expenses
-	Shifted the capital costs and expenses associated with operating a home verification service to
the private market
-	All investments to analyze, test, and verify home compliance with ENERGY STAR was made by
the private HERS rating companies
Allowed Utility to Focus on Critical Areas of Program
Monitoring production pipelines to ensure goal is achieved
-	Recruiting and maintaining partners
-	Advancing energy performance (improving cost efficiencies)
-	Expanding program to achieve increasing annual goals
Achieved Rapid Expansion of Program Across Service Territory
Advantages
-ICF
Annual Delivery of ENERGY STAR Certificates
and Partner Participation
Vi.bii
2003	2004
Program Year
s * Raters |
3

-------
A . ,	IGF
Advantages
Realized Market Improvements Through Increased Competition
Between HERS Rating Companies:
-	Pre-sheet rock inspections to reduce risk of a home not passing the final verification test (prior to
adoption of the Thermal Bypass Checklist)
Turnkey solutions for homebuilders (i.e. submit required program data to TXU Electric Delivery)
-	Performance-based pricing structures
Reduced Risk of Achieving Annual Goals
-	Spread out risk among multiple raters
-	Reward raters who out performed competitors
-	Increase number of individuals promoting the program to builders
Contributed to the Economic Development of the Region
Established Foundation of Companies that Can Support Future
Residential Programs
Disadvantages
!ICF
Increased Risk
-	Lack of control of HERS ratings and company performance
Intensified Level of Supervision and Management
-	Assist HERS Raters in becoming viable companies
-	Closely manage the activities of HERS Raters to ensure goals will be met
-	Establ ished TXH E RO to "self mon itor"
Increased Oversight on Quality Assurance
-	Verify HERS Raters followed RESNET guidelines and that homes meet ENERGY STAR
specifications
-	99.3% of passing rate in 2005 (2 failures out of 295 homes retested)
Disadvantages
!|CF
160%
140%
120%
100%
80%
60%
40%
20%
0%
Rater Performance
Percent of Initial Commitment Delivered to Program
62% 61%
IE
on

>  V
mp" mp" mp tsr	«er
^ ^ ^ ^ ^
Program Results
-ICF

2002
2003
2004
2005 I
Participating builders
29
43
54
68
Original home goal
3,000
10,000
11,000
16,000
Homes delivered
6,492
13j533
14,087
13,000
Total kWh savings (in
million^
24.6
24.3
26.7
25.7
Total MW savings
7.4
29
31
29
Ave. kW/ home
1.15
2.14
2.17
2.24
4

-------
Lessons Learned
A utility must closely monitor the performance of HERS rating
companies to manage risks and achieve annual goals.
Requires a significant amount of oversight to ensure annual goals are
achieved, the industry continuously matures, and rating companies
become self-sufficient.
Quality of HERS ratings is not adversely affected when performed by
independent and competitive HERS rating companies.
HERS rating infrastructure can be leveraged and used for other
residential energy efficiency programs (i.e. home performance).
Allows the best HERS rating companies to prosper and grow while
others slowly withdraw from the market.
5

-------

-------
Reaching a Dispersed and Diverse
Builder Audience
Presented by Andrew Fisk
Program Manager, NYSERDA
NY5EHDA

ENERGY STAR
HOMES

New York ENERGY STAR Labeled Homes
I hvoiced ¦ Projected	Program Production
End of SBC
End of SBC I

New York Large-Scale Deployment and Quality Assurance
CsUA,
Standards set

IVYSCRDA
mNer
Curriculum
Developed and
Training Delivered

New York ENERGY STAR® Labeled Homes
NYSERDA designed it's Program to be a Market Model
- We target both the Large and the Small Builders
2006 NYESLH Production per Builder
1 10 19 28 37 46 55 64 73 82 91 100 109 118
1

-------
Specialized Marketing

Marketing Activities are designed to be
broad reaching and universally relevant
- Utilize the "Push-Pull" effect of the Market
•	Cause demand from Customer and desire to supply
from Builder
•	Energy $mart Communities
•	Television series on PBS
•	Print advertising
•	Cooperative Advertising Incentives
ENERGY STAR
HOMES
	
Create Demand - Marketing

ENERGY STAR
--- -
I JJiDuDlj iJiii
3
Teaming up with Market Players
B
ESSEE3	mummmI
NYSERDA works closely with the New York State
Builders Association to increase awareness and
further penetrate the market
- In 2006 we had a 11% market share.
RESNET
EPA

Technical Support
ENERGYSTAR
HOMES
2
NYESLH are tested to
ensure the finest
construction
- Utilize on site support
Implementation, HERS
Rater/Provider, and NYSBA
REF

-------

ENERGY STAR
HOMES
Raising the bar of excellence
-	Ideals of health, safety, comfort, environment,
energy costs resonate well with Consumers and
they request of builders
-	Builders in the Market have to raise up to deliver
product requested of them and keep up with
competitors

Diverse outreach results in true success!
The new construction market
has as many types of business
models as there are types of
houses,
-	Key is to make customers ask for
it and Builders automatically
deliver
-	Don't limit yourself to the big
players!

THANK YOU!
1 (877) NYSMART
www.GetEneravSmart.ora
(518) 862-1090 (Albany)
www.nvserda.org

-------

-------
1st Annual ENERGY STAR
Residential Program Partners Meeting
April 26 27, 2007

ENERGY STAR New Homes
Sponsor & Utility Program
Incentives

•	Cash rebate for each ENERGY STAR home
•	HERS rating
•	Co-op advertising
•	Sales training
•	Marketing materials
•	Discount on utility bills for homeowner
•	Free CFLs
•	Rebates for high efficiency furnaces, heat pumps, and
water heaters
•	Rebates for ENERGY STAR appliances
•	Rebates for ENERGY STAR lighting fixtures
•	Rebates for model homes
Types of Incentives
Other possible incentives?
•	Discounted utility hook-up fees
•	Expedited permits through local
government

-------
Cash Value of Incentives

_ 11
p

rs







Cash Value of Incentives
Compared to
Percentage Growth Over Past 5 Years
1800 ^ Incentive
1,600

% Growth (,00
- 500
1.400
1.200
1.000
Geographic Area
^ $ Incentive
% Growth
For More Information...
Contact
Stacey Patmore
Patmore.stacey@epa.gov or
(202)343-9407
www.energystar.gov/homes

-------
ENERGY STAR for New Homes
Utility Stakeholder Meeting
Program Design Track
April 26, 2007 Atlanta Georgia
Gregory A. Nahn
Wisconsin ENERGY STAR Homes Program
Wisconsin Energy Conservation Corporation
• focus on energy
The power u uifAiit you.
AN
Wisconsin ENERGY STAR Homes Program
Program Review:
•	Program Description
•	Program Implementation and Intent
•	Initial Research
•	Key Needs to Address
•	Program Design Considerations
•	Objectives and Lessons Learned
•	What is Working What is New
focus on energy
The power u uithin you.
Wisconsin ENERGY STAR Homes Program
Augmenting Skills with Technical Training and Education
... Investing in Success
Education and training = sharing information
•	Reasons to invest
•	Ways to invest
•	Types of training
•	Results
•	New Opportunities
J focus on energy
Tht poutt u uithin you.
Wisconsin ENERGY STAR Homes Program
Program Description:
The Wisconsin ENERGY STAR Homes Program provides
unbiased, third party building verification, consulting, and testing
services to the Building Industry on the construction of safe,
comfortable, and durable energy efficient new homes.
Building Performance is verified through a certification process (for
fee) that includes plan review, construction site visits, and final
testing that address building performance beyond energy efficiency
and in the best interest of the industry, occupant, and environment
* •
focus on energy
The power ii uithin you.
1

-------

Wisconsin ENERGY STAR Homes Program
Program Implementation and Goals:
The Program is designed, developed, and administered by
Wisconsin Energy Conservation Corporation and delivered by
private accredited consultants (advanced raters) with the partial
support of Public Benefit funds (collected through rater payers).
The intent of the program in to set participants up for success and
empower them through the sharing of building performance
information and the development of marketing tools to create
market awareness and differentiation - market transformation
focus on energy
The poiitr u uithin you.
Program Research
Initial Program Research:
informal research involved:
~	drawing on the experiences of developing and delivering an
existing home rating program
~	Early experience of "rating" new homes for Parade of Homes
promotion
~	Review of other national new construction programs
focus on energy
The power u uithin you.
Key Needs
Key Needs Identified:
•	Establish standards valuable to the building industry (and buying
public) beyond energy efficiency. Standards that address the
builder's concerns (and public need) and build trust and credibility
(SAFE)
•	Add site visits during construction to address and document
details that drive building performance and provide an on-going
platform for voluntary engagement and continuous improvement
•	Increase the credibility of the HERS infrastructure with expanded
training and on-going support targeting new construction issues
focus on energy
The power is uithin you.
Key to Address
Other Keys to Address:
~	Increased costs (upfront) to the builder for the delivery of
program services (consultant fees)
~	Potential (andperceived) increases in material cost/ upgrades
necessary to meet (or exceed) energy (and other requirements)
for certification
~	Balance building consumer awareness and demand with builder
participation (capability and acceptance) in meeting program
standards
* •
focus on energy
The power ii uithin you.
2

-------
Design Considerations
Program Design Options:
~	Require site visits and additional standards to address building
performance - air tightness, ventilation capacity, combustion safety
~	Require written site visit reports to builder. Provides added value
to builder and transfers responsibility for implementing SV
recommendations in best interests of builder
~	Invest in outside "experts" for training consultants and building
industry. Investment strengthens program/consultant credibility,
builder buy-in, and develops (later) in-state resources and HBA
recognition
J focus on energy
The pourr u uithin you.
Design Considerations
Program Design Options:
•	Provide Consultant fee discounts and (later) Builder Certification
rewards to (initially, partially) offset the builder's incremental cost of
program services
•	Include Rating (score) and (later) Technology rewards to (partially)
offset the builder's incremental costs in meeting efficiency threshold
and/or encourage upgrades for greater energy savings
•	Develop marketing mechanisms to gain builder buy-in and
potentially offset costs of participation, and building market
awareness and differentiation - in advance of consumer marketing
focus on energy
Objectives and Lessons Learned
Program Goal:
To be viewed as credible and valuable in building industry and market
Lessons learned:
•	address concerns building industry first
•	standards are specific, achievable, assessable, and proven effective
•	don't over promise what you (or the market) can deliver
•	informed decisions are "better" choices
J focus on energy
The poutt u uithin you.
Objectives and Lessons Learned
wimp*;
Program Goal:
To deliver safe, comfortable, durable, and energy efficient homes
Lessons Learned:
•	don't put energy efficient first
•	construction details (not products) matter
•	market message beyond new home "paradigm"
•	provide homeowner's manual and follow-up survey
•••
focus on energy
The power is tt-ilhin you.
3

-------
Objectives and Lessons Learned
Program Goal: Increase electric system reliability
Lessons Learned (in Wisconsin):
~	builders don't decide / influence base and plug load decisions
~	equipment run time and maintenance effect savings potential
~	electric load increasingly >= heating load = lost opportunities
~	Market Channel rewards / spiffs are better positioned to influence
buyer/builder decisions
J focus on energy
The pouvr u uithin you.
Objectives and Lessons Learned:
¦iNtwun-w.jg ¦(
Program Goal: Create infrastructure of professional sen/ice
providers
Lessons Learned:
~	tend towards market cost training
~	market program as a business opportunity
~	require tight QC & QA, and customer services standards
~	offset initial barrier to program participation at your own risk
~	create opportunities to diversify consultant services
J focus on energy
Objectives and Lessons Learned:
Program Goal: Promote installation of renewable energy technologies
Lessons Learned:
•	small but growing potential market (and market advantage)
•	cross promote installers / assessors / suppliers to facilitate market
•	address "renewable ready" time of construction details
•	reduce loads (first) to match technology
J focus on energy
The poutt u uithin you.
Objectives and Lessons Learned:
wimp*;
Program Goal:
To be recognized as market leader in new construction building
performance
Lessons Learned:
•	build on national ENERGY STAR for Homes platform
•	integrate / infiltrate local home building associations
•	provide venue and mechanism for participant recognition awards
•	leverage PR campaigns, local industry champions, collateral
marketing and training event opportunities
•••
focus on energy
The pouft is tt-ilhin you.
4

-------
Investing in Builders Skill with
Technical Training and Education
Reasons To Invest:
~	To gain TRUST and CREDIBILITY in the building industry
~	To develop "local" training resources (trainers) - phase out
initial reliance on outside experts.
~	To provide platform for continued improvement - training
new topics, technologies, advanced trainings
~	To engage Home Building Associations on training agenda
topics of mutual interest.
J focus on energy
The pouvr u uithin you.
Investing in Success
Ways to invest in Training:
~	Direct training - Program resource
~	Partnerships in Industry (window manufacturer, product supplier) with
common goals (cost sharing expense- greater market reach)
~	Sponsorships for local events (HBA conferences, trade shows, home
shows). Provides value to HBA.
~	Participant Scholarships for regional / national events (A.C, EEBA,
RESNET)
A S
focus on energy
Investinq in Success
Types of training:
•Training series: In-class formal training (informational, interactive)
~	In field small group training (skill based, specific topic, short delivery,
consultant led workshop)
•Technical Exchange meetings: Voluntary participant driven quarterly
meetings for consultants and builders (talk shop)
•	Trainer the Trainer: Training for trainers on curriculum development
and delivery (teach not to lecture)
m •
focus on energy
The powrr u uithin you.
Investing in Success
Training Series Results:
•	Energy Center of Wisconsin Residential training series
•	2005-2006 Series: 8 topics, 26 events, 1,385 building professionals,
average score A-, delivered (mostly) by local consultants
•	2000 to date: 178 events with over 8,000 building professionals
(residential and multi-family) attending
focus on energy
The poutr it uithin you.
5

-------
Investing in Success
In-field Results: Builder performance trends over time
Build tight = energy efficient = building quality*
Group
focus on energy
The pou.tr is uithin you.
Investing in Success
New Opportunities:
focus on energy
Tht pourr u uithin you.
ENERGY STAR for New Homes
Utility Stakeholder Meeting
Program Design Track
Gregory A. Nahn
New Construction Program Manager
Wisconsin ENERGY STAR Homes Program
Wisconsin Energy Conservation Corporation
608-249-9322 (office)
greg@weccusa.org
focus on energy
The power is uithin you.
6

-------
INTERNATIONAL
Marketing: It's More Than
Increasing Consumer Awareness
ENERGY STAR® for New Homes Utility Stakeholder Meeting
April 26-27, 2007
Presented by
Brian Preston Smith
Project Manager
ICF International
ICF
INTERNATIONAL
Put Yourself in the Builder's Shoes

Builder's care about one thing:

* Maximizing profits

They accomplish this by:

* Minimizing cost of construction

• Selling at the highest price

possible

• Moving inventory quickly


Put Yourself in the Builder's Shoes
INTERNATIONAL
Builder Sales Cycle
Projections
Evalu
(
Sold
External
Factors
Sales -
wr+nmmm ®
lUUUtll
Marketing
What is Marketing?
Marketing is a deliberate strategy
that can directly contribute to a
regional sponsor's energy
efficiency goals

-------
INTERNATIONAL
Why is Marketing Important?
A marketing campaign increases consumer
awareness"and stimulates consumer
preference
As ENERGY STAR becomes the preferred
consumer choice, builders feel compelled to
build ENERGY STAR
- They see value in every stage of the sales
cycle
Regional sponsors can leverage this dynamic
to gain greater control over their program and
the ability to manipulate the market to their
advantage
INTERNATIONAL
The Benefits to Regional Sponsors
Marketing can help sponsors:
•	Increase builder participation and
homes committed to the programs
•	Improve cost effectiveness overtime
•	Create greater stability during times of
change to ensure you achieve annual
goals
INTERNATIONAL
Increasing Builder Participation
Production costs will always be a primary barrier
Builders will participate in the program if they
believe ENERGY STAR will help them compete
in the market place
A marketing campaign is a valuable recruitment
tool because it:
-	Ensures consumer demand for their product
-	Provides builders with the exposure and
differentiation they desire
Example - Texas
Ad Campaign
-	Print
-	Radio
-	Billboards
Builders received
exposure based on
number of units
committed to program
-	Increased number of
units committed to
program
w-
Houston's ENERGYSTAR Homes
Like redudng pollutants by the weight
of 10.000 elephants. Every year.
'Energy

-------
ICF
INTERNATIONAL
Results
Annual Delivery of ENERGY STAR Certificates
and Partner Participation
u . 									 • ill
6,499	43
¦¦lilt
Program Year


ICF
INTERNATIONAL
Results

Anecdotes

• Kiella vs. Omega

• Kiella outsold Omega 3 to 1 in

same community

• Omega joined ENERGY STAR

• Kiella raising bar - increasing

HERS scores to further

differentiate
WKKS7 —- i
ICF
INTERNATIONAL
Improving Cost Effectiveness
As awareness increases, a buzz will be created
in the market place
Builders will begin to realize that they can not
compete with out ENERGY STAR
Once this is achieved, sponsors can begin to
modify the program to improve cost
effectiveness:
-	Reduce recruitment costs
-	Modify incentive structures (reduce, tier)
-	Purchase more homes (kW/kWh) for same
amount of money
ICF Example
Home is
where the
star is.
Ad Campaign
Events
Mid-stream actors
Trainings
Sponsorships
Web site
Point-of-Sale
ENERGY STAR
qualified home!
EBB
3

-------
Results
INTERNATIONAL
Reduction of Incentive Over Time
Illustration Based on Actual Results in Texas
-r $400
KF Imamotlgnd. .isn E«o*>Vm
*
~.--r t
Hi
Results
INTERNATIONAL
$/kW Over Time
Illustration Based on Actual Results in Texas
14.000 -r
12.000
10,000
2.000
-ffkW |

¦•4 *
Results
INTERNATIONAL
Anecdote
•	Choice Homes - Sales staff meeting
-	ENERGY STAR communities outselling
non ENERGY STAR communities
-	Not being able to compete with
ENERGY STAR competitors
•	Choice makes decision to add more
communities to ENERGY STAR
-	Provides regional managers with
authority to make decision in future
Creating Greater Stability
External factors will always affect programs:
-	Economic conditions (interest rates, cost of
materials, demand, interest in green building, etc.)
-	Specification changes (EPA and RESNET)
Increased demand makes it more difficult for
builders to turn away from ENERGY STAR for
fear of not being able to compete (especially in a
down markets)
This dynamic allows sponsors to thrive in good
markets and maintain goals during down
markets
-	ENERGY STAR is critical to builders success

-------
INTERNATIONAL
Examples - Texas
Background - Texas
•	Sponsors' implemented marketing campaign
during past five years
-	Achieved high level of awareness
•	Faced significant challenges in 2006 and 2007:
-	Changes to HVAC equipment and ENERGY
STAR specifications
-	Market changing (slowing, interest rates, more
competitive)
•	Expectation was 50% of builders would drop
out of program in 2007
Results
INTERNATIONAL
More than 90% of builders
returned to the programs
Committed more than 20,000
ENERGY STAR qualified homes
in 2007
ICF
INTERNATIONAL
Questions

-------

-------
ENERGY STAR® Homes Northwest

CHANGE FOR THE
BETTER WITH
ENERGY STAR
Engaging the Marketplace
In the Northwest

Anne Brink,
Market Manager
Northwest Energy Efficiency Alliance
Kendall Youngblood,
Residential Sector Manager
Energy Trust of Oregon, Inc.

CHANGE FOR THE
BETTER WITH
ENERGY STAR
Program Implementers
Northwest Energy Efficiency Alliance (NEEA)
-	Non-profit funded by Northwest utilities and
systems benefit administrators.
-	Encourages adoption of energy efficient
technologies and services
Energy Trust of Oregon
-	Non-profit organization, administer systems
benefit charges collected from 5 utilities in
Oregon
-	Cover 80% of the state

Program History
CHANGE FOR THE
BETTER WITH
ENERGY STAR
Program Launched in 2004
- 2,354 Northwest ENERGY STAR Homes built in 2006
I - 237 Northwest ENERGY STAR active builders in 2006
Northwest ENERGY STAR Homes program includes
Washington, Oregon, Idaho, and Montana

1

-------

CHANGE FOR THE
BETTER WITH
ENERGY STAR
jk.

"
Key Market Players
Builders/Developers
Building Performance Specialists/Verifiers
Realtors
Suppliers to Builders - HVAC, Lighting &
more
Builders/Developers
Progress to Date
Co-op Advertising/ Model Home Incentives
Program-Sponsored Advertising
Champion Builders/Developers
Engaging Builder Associations
Partnering with Green Building Programs
Extensive marketing efforts and staff training on
ENERGY STAR benefits
CHANGE FOR THE
BETTER WITH
ENERGY STAR

CHANGE FOR THE
BETTER WITH
ENERGY STAR
Co-op Advertising
50 builders leveraged $110,000 in cooperative
funding.
47 builders received model home incentives for
opening 55 model homes.
80 builders in 8 markets leveraged $183,000 in
funding through EPA coop.
Victory Homes—Spokane, Washington and
Holton Homes—Nampa, Idaho
.A-2
HOLTON

CHANGE FOR THE
BETTER WITH
ENERGY STAR
Program-Sponsored Ads
Energy Trust's fall campaign showcasing
ENERGY STAR builders with inventory.
Looking to buy?
ENERGY STAR£ qualified homes are available now!
pp
MS.
**

55

St *
JH

V A bvtear ham n
m

m

2

-------

CHANGE FOR THE
BETTER WITH
ENERGY STAR

Program-Sponsored Ads
Be green. Buy blue.


CHANGE FOR THE
BETTER WITH
ENERGY STAR
Villi
Ir
Jtk
in
¦
I
s-raai
Champion Builders
14 champion builders in 2007 received $84,000
Co-branding efforts with these builders included:
-	Fully integrated advertising campaigns
-	Public Relations campaigns
-	Upgraded presence on websites
-	Display installation in sales offices/model
homes

QJg£3S=
- fe*
hite

-------

CHANGE FOR THE
BETTER WITH
ENERGY STAR
"
Green Building Programs
Working with regional green building programs
to co-brand and jointly promote energy-efficient
building practices.
-	Earth Advantage - ENERGY STAR preferred
energy path
-	Built Green - ENERGY STAR required for 4
star level
^earlti
Trim frvmitrr S»urc« for
SuiuliuWr HijiHUttQ SoluOott*
%
Built Green

CHANGE FOR THE
BETTER WITH
ENERGY STAR


Green Building Trainings
In Oregon, co-sponsored with Earth Advantage
a Green Building week hosted by the HBA. 60-
80 people attended each session.
-	Green Building 101
-	Building to the federal tax credit
-	Selling Green Homes
-	Networking after hours event

Builders/Developers
Next Steps
CHANGE FOR THE
BETTER WITH
ENERGY STAR
• Moving existing builders to 100% status.


•	Actively working with builder associations and
green building programs to encourage 100%
ENERGY STAR.
•	Positioning Champion Coop funding to be available
to only 100% ENERGY STAR builders.
•	Supporting quality project management in the field.


15

Realtors®
Progress to date
CHANGE FOR THE
BETTER WITH
ENERGY STAR in the Realtor Multiple Listing Service
•Oregon
•Washington
Continuing education courses for Realtors
•Idaho


£lie (Orcpiian
Local homes database turns 'green'
RMLS - EiMronmeiitallyfriencBy information for Realtors signals good news for some buyers and
sellers and starts a trend
16
4

-------

CHANGE FOR THE
BETTER WITH
ENERGY STAR
"
Realtors®
Next Steps
Creating two continuing education courses
-	Two day course partnering with green building
program
-	Four hour course on ENERGY STAR/energy
efficiency overview
Engaging the BPS
Progress to date
•	Eniist marketplace instructors and partner with
Title Companies on trainings
•	Partner with Real Estate firms to market ENERGY
STAR Homes
«
	
Building Performance Specialists
Next Steps
-Assist verifiers in expanding their business.
Includes: assisting on equipment expenses,
co-op marketing
- Encouraging verifiers to recruit builders.
Providing training on sales, marketing and
business development.
- Providing training to assist verifiers in adding
services that increase their value to the builders
and improve their revenue per house.
CHANGE FOR THE
BETTER WITH
ENERGY STAR
CHANGE FOR THE
BETTER WITH
ENERGY STAR

HVAC Contractors
Progress to Date
• HVAC Pilot effort is targeting HVAC contractors
and distributors as a way to encourage sales of
high efficiency equipment and to recruit builders
into the program.
•Gensco (Trane distributor) and Tri-County Temp
Control working with Legend Homes.
•Legend Homes now planning a 34 unit
development as 100% ENERGY STAR.
5
		j
CHANGE FOR THE
BETTER WITH
ENERGY STAR
2004 and 2005
-	Program recruited builders and passed them
off to the verifiers to inspect and label homes.
2006
-	Provided co-op marketing funds so verifiers
could market their business.

-------
CHANGS FOR THE
BETTER WITH
ENERGY STAR
"
HVAC Contractors
Next Steps
•	Working with HVAC distributors to increase
number of shops selling the ENERGY STAR
Homes program.
•	Discussion of specific pricing strategies and
implementation logistics.
•	Program assistance for HVAC contractors to
market themselves as ENERGY STAR partners.
21

6

-------
NO ENERGY STAR
Conference
Laurel Elam
Appalachian State University
NC ENERGY STAR Conference
December 8th, 2005
-	North Raleigh Hilton
-	200 attendees
December 6th, 2006
-	Hilton Raleigh-Durham Airport
-	300 attendees
November 15-16th, 2007
-	Marriott Durham at the Civic Center
-We hope for450 attendees

Key Objectives
Bring people in the building industry together to
explore ENERGY STAR Homes and high
performance building
Offer breakout sessions including diagnostics,
green building, HVAC, program standards,
marketing and education
Networking and exhibits
Increase number of ENERGY STAR Homes in
the state
1
Steps to Successful Builder Event
Keynote speaker
Exhibits
Interesting sessions
Continuing education
credits
Reception
Price
Awards- 2007

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Time and Resources
•	One-two people part time 9 months prior to
event
•	One person full time starting 3 months prior to
event and two people part time
•	Graphic artist needed for brochure and program
Volunteers to help facilitate breakout sessions
and do registration check-in
Grant money- $29,000
- Pays for labor
Agendas and Speakers
•	Go to other conferences!
- Meet speakers, take notes about what you
like and dislike
•	Look at other agendas and breakout
sessions
•	Feature hot topics in the industry
•	Have at least 3 session tracks to choose
from
•	Seek out well known speakers
•	Breaks for exhibits and networking
Attract Attendees
Market to everyone involved in the building
industry
- Builders, architects, engineers, HERS raters,
product representatives, researchers, appraisers,
mechanical contractors, real estate agents, home
inspectors, building code officials, utility
representatives
Interesting breakout sessions
Continuing education credits
Offer tests or other certifications
Vendors and exhibits
Keynote Speaker(s)
Networking
Website, email, blogs,
and newsletters
Logistics and Registration
•	Easy access to airport
•	Central location in state
•	Map of hotel in program
•	Classroom set-up is preferred
•	Plenty of space in exhibit hall
•	Online credit card registration
Look at other conference dates
Early check-in helps rush the morning of the
event
Organize check-in lists, name tags and
onsite registration
2

-------
Registration Fees
Q
2005-	$75 for regular registration
$125 exhibit registration
»includes 1 pass and $50 for additional
registrations
2006-	$75 non-profit/$125 regular
$150 non-profit exhibit/$250 reg.
»inciudes 1 pass and $50 for additional
registrations
Booths and Sponsors
•	Get the word out any way you can
-Email, newsletters, blogs, mailer
•	Give plenty of time for exhibits and
networking
•	Give exhibitor information in program
-Contact info and booth location
Diversify sponsorship list
Give sponsors exhibit space, free passes,
and recognition in program and website
Initial Observations
•	Attendance is growing
•	Exhibitors happy with response from
attendees
Good feedback from conference surveys
Expanded audience
-Continuing education credits
Hotel communication breakdowns
Time of year
Increase budget or sponsorship dollars to
pay for speaker travel expenses
3

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ROCKY MOUNTAIN POWER ENERGY STAR
NEW HOMES PROGRAM
PROGRAMDESIGN
Program Description
Program design for the Rocky Mountain Power ENERGY STAR New Homes program began in early
2004, with a launch date set for January 2005 in the Rocky Mountain Power service territory. Ecos
Consulting, a Portland based company with a strong commitment to preserving and enhancing the
global environment was awarded the 5 year contract with PacifiCorp to conduct this program in two
of the clients markets; Central Washington under the Pacific Power name and in Utah under the
Rocky Mountain Power name (formerly Utah Power).
While both of the programs are critical to Ecos Consulting and PacifiCorp, the majority of
comments in this discussion will focus on the successes that have been realized in the Utah
market.
Not unlike other ENERGY STAR New Homes programs Rocky Mountain Power set out to transform
the building industry throughout the state of Utah. From the largest production builder - a local
company - to national home builders, to the individual home owner. Utah has seen an overall new
home construction increase of about 25% over the past few years with new home permits now
approaching 22,000 peryear.
Program Research. Design and Findings
Ecos Consulting contracted with Ecotope in Seattle WA, to help model the PacifiCorp program. The
Northwest's model of a prescriptive path for is used for ENERGY STAR homes in Washington.
However Utah's homes are certified through H.E.R.S. raters and performance based testing. It is
important to note that the Utah market is quite different from the Northwest in several aspects of
home construction but particularly in the area of HVAC installation and equipment. Duct design
and products used during installation is quite different in Utah versus what was modeled in the
Northwest. This finding has resulted in the need to provide extensive ongoing training to the HVAC
trade allies.
During the design and early implementation phases of the program it was also learned that the
program would quickly outgrow the existing H.E.R.S. rater community. Within just a few months
efforts were in place to bring additional raters into the market to keep up with the demand of
homes that needed to be certified.
Program Selection and Implementation
It was decided jointly by Ecos Consulting and PacifiCorp to make the Rocky Mountain Power
program a cash incentive program with the rebate going to the home builder. Due to the hiring of
additional staff members and some changes in management at Ecos, the current program
management team was not part of the program design and therefore does not know what other
options were discussed prior to accepting the current program.

-------
In addition to the cash incentives the management team has offered (and continues to offer)
ongoing trade ally training ranging from sales agent training to HVAC and insulation training in
orderto provide an added value to the builder.
Program Goals
An aggressive goal structure was put into place in an attempt to jump-start the Utah market and
quickly bring it in line with other New Homes programs.
Year
# of Homes
Cum# of Homes
Year 1
362
362
Year 2
1,780
2,142
Year 3
2,329
4,471
Year 4
2,874
7,345
Year 5
3,146
10,491
The resulting impact of this program will bring the savings of 17,361,000 kWh to the client over the
5 year period.
Though Utah's market is growing, the numbers above show that it is still a relatively small market
for ENERGY STAR New Homes which in-turn indicates that there is a lot of potential for future
programs.
Initial Obsen/ations
At a glance the Utah market seemed quite similar to other housing markets. However as the
program developed, it quickly became apparent that some of the building practices were quite
different or perhaps just behind the curve of other markets. In the area of HVAC alone this market is
in need of vast modifications - not only to how ducts are installed, but in what material to use and
how to size equipment. It has been discovered that Utah is not alone in the area of needed
improvements, but more extensive research of the market priorto program launch may have
impacted how the program was rolled out.
The program has been well received by builders in Utah. Eariy pioneers of ENERGY STAR New
Homes and long time ENERGY STAR partners in Utah helped prepare the way for a successful start.
The program management team's positive attitude toward the benefits of ENERGY STAR aided
them in selling the program to Utah's top builders. By showing added value to the builder the
account managers can easily explain the benefits and help form the builder's opinion towards
energy efficient measures in their building practices.
Certainly there are areas that can be improved on. The Rocky Mountain Power team has shifted
some of the focus from training the builders to educating the public. Cooperative marketing efforts
continue to be important to the builders, but in addition there is a concerted effort being made to
bring awareness to the consumer.

-------
ROCKY MOUNTAIN POWER BUILDER SEMINARS
Kev Objectives of a Builder Seminar - 2007 Program Preview Seminar
With the Thermal Bypass Checklist being introduced into the market in 2006 there were several
questions on the minds of the builders as to what it would take to conform to the new standard.
During the summer of 2006, the Rocky Mountain Power ENERGY STAR New Homes program
identified the need to disseminate as much information as possible to as many builders as
possible in as short as time as possible. With this in mind the program management team blitzed
the builder community with an invitation to attend a 2007 Program Preview seminar to present new
information about the ENERGY STAR New Homes program and answer questions that they might
have.
Steps Taken to Organize an Event
The success that the team has enjoyed in Utah can primarily be attributed to communication with
the builders and respect for their time. Below is a bare bones example of the steps necessary to
host a successful event (details will change based on the specifics of your event - size, location,
guest speakers etc.);
o Plan the event several weeks in advance (months in advance if it is a large event)
o Secure a location
o Offer something that the builder wants
o Communicate
¦	Email blast 5 weeks in advance
¦	Fax 3 weeks in advance
¦	Post card 2 weeks in advance
¦	2nd email blast 3 days before event
(This pattern of communication has been successfully used for a variety of different
meetings and events associated with the program.)
o Feed those who attend (some will do anything for a free meal!)
o Tell them how long they will be there and then stick to it
o Plan the event around something that may draw the builders in
¦	Another event
¦	A prominent guest speaker
¦	New incentives
¦	etc
o Keep it short and to the point
o Add value to what they already offer as a home builder
Planning For an Event
How much time should be allocated to preparing is very event specific. A simple answer might be
'as much time as you can afford to allocate.' A successful event in September of 2006 in Utah was
pulled together on a fairly tight budget with only the time and resources of the management team -
no third party event planners. The majority of the steps above were followed and the outcome was
phenomenal.

-------
Attracting Attendees
Offering the home builders a reason to come to an event is critical. Offering multiple reasons is
almost a guarantee for success. In the case of the 2007 Program Preview seminar in Utah, three or
four compelling reasons were given to entice attendees;
1.	Free Free Free - there was no charge for attending the 3 hour event
2.	Continuing Education Credits were made available
3.	Information about the 2007 New Homes program was presented (this equated to
incentives dollars)
4.	Free lunch
5.	Nationally known guest speaker - Sam Rashkin of the EPA's ENERGY STAR New Homes
program
These simple guidelines were implemented at the ground level. Detailed follow through contributed
to a very successful meeting that left the builders with a solid understanding of the new program
plus an enthusiasm to carry them into 2007.

-------
Brian Preston Smith,
ICF
inruMAnoHAt
Evaluating HERS Ratings in the
Lone Star State
Oncor's
Quality Assurance and Quality Control Process
Presented by:
ICF
IN19HHWMAI
Background
Overview of HERS Rating Infrastructure:
~	Established by Oncor ENERGY STAR Homes
Program in 2003
~	Rapid growth during five year period (1 to 16
companies)
~	Many companies new to the home energy rating
business
~	These companies certified more than 60,000
ENERGY STAR qualified homes during a five year
period
ICF
Background
Annual Delivery of ENERGY STAR Certificates
and Partner Participation
2004	201
Program Year
ies Builders * Raters
- 13.151 _
,	|	|	H				 2
io' ——	EM		1 —40 2
>o -1—Mpb	H		¦ — 30
io ¦ — WM	mi	LiH		J Bp I	20
IIHirrl .1:1
ICF
Background
Rapid expansion of program and growth of rating
infrastructure lead to certain questions:
~	How are raters performing?
~	Are they following RESNET standards?
~	Are the homes truly meeting ENERGY STAR
performance specifications?
1

-------
ICF
INTERNATIONAL
Background
Program responses:
~	Established Texas Home Energy Rating
Organization in 2003 (Texas HERO):
-	Non-profit, industry association
-	Facilitates discussion on standards and best
practices
-	Provides continuing education/training
-	Represents interests of HERS rating companies
in TX and the U.S.
~	Implemented QAQC Process in 2004
ICF Goals of the QAQC Process
1. Validate the accuracy of the information reported
to the Program by participating HERS Raters;
2. Confirm the data used by Oncor to calculate
predicted kW and kWh savings reported to the
PUCT; and
3. Help strengthen the ENERGY STAR for homes
brand and the integrity of the HERS rating
industry in the region.
ICF
Objectives to Achieve Goals
A. Verify RESNET standards for home ratings are being
followed by accredited HERS Raters and Providers;
B. Identify inconsistencies and misinterpretations of national
standards;
C. Establish continuous feedback loop and facilitate
corrective actions; and
D. Encourage Texas HERO and RESNET to adopt best
practices and clarify industry standards.
ICF
Design of QAQC Process
Based on:
1.	Deming model of Plan,
Do, Check, Act
2.	ISO 14000:
Environmental
Management Systems
A systems approach to
verify quality and
achieve continuous
improvements

Poke*
Monogamy 0*
KkKIcV,
Ctaekmg
Correctavt
Act ton
Pkmnng
\ J
Implementation
2

-------
(CF	Methodology
1.	Dete r mi ne acce ptablevariances;
2.	Generate sampling protocol;
3.	Collect necessary data from actual building plans and on-site
inspections of tested and batched homes;
4.	Generate worst-case QAQC results and compare to data generated
and reported by HERS Raters;
5.	I d entity d iscre pan ci es an d co nd u ct f u rth e r an a lysi s to d eter mine
cause(s);
6.	Share results with Texas HERO, rating providers and the EPA and
RES NET when necessary; and
7.	Developcorrectiveaction planstoachievecontinuousimprovements
in HERS rating process and industry.
EE	Methodology
Acceptable variances for the 2004 - 2006
QAQC process (as agreed to by Oncor,
Texas HERO, and ICF):
~	HERS score	+/-0.5 point
~	IECC score	+/- 3%
Dual metric for ENERGY STAR for homes in Texas during 2004 -
2006 due to adoption of IECC in 2003.
ICF Sample Generation
~	Includes all raters participating in the Program
~	Sample Priorities:
-	1st: proportionate to rater participation
• 50% of homes in program = 50% of homes in QAQC sample
-	2nd: proportionate to builder participation
~ Sample goal: 300 homes (~2% of total homes
delivered to Program each year.)
-	50% batched
-	50% tested
ICF	Data Collection
Data collected from HERS rating providers:
~	Final REM/Rate files with "confirmed" HERS
score;
~	Data submitted by raters through Program
online reporting system (HERS score, floor
area, equipment specifications, etc); and
~	Building plans.
3

-------
Data Collection
ICF
IMTtBMMMMMl
Data collected by third party during on-
•	Home location
•	Number of stories
•	Foundation type
•	Home orientation
•	Predominant exterior wall
color
•	Total duct leakage
•	Duct leakage to the outside
•	Whole house infiltration
value from blower door test
•	Blower door metric used
-site verification of tested and batched homes:
~	Presence of radiant barrier
~	Presence of p-stat
~	Predominant window frame type
and number of panes in
windows
~	HVAC coil and condenser brand,
model, and serial number
~	Qualitative assessment of attic
insulation installation and HVAC
installation quality
~	Photograph of front orientation
Note: On-site verification was performed at least 72 hours after raters' final
test
ICF Analyses and Evaluation
INTUHAIIOKJU.	
-------
ICF
INTUNATlONAL
Three Years of Results

Number of homes that did not meet
ENERGY STAR qualifications*
Passing
Rate
2004
22
92.40%
2005
2
99.30%
2006
4**
98.70%
*HERS Score of 86 and 15% above IECC
**Failure is below a HERS 87 due to incentive structure
BTfltM B
r




1
CF Corrective Action Plan at Work
| INTERNATIONAL

1

| 2004
8% of homes failed to meet ENERGY STAR qualifications | |


Issue
Action Taken
Result



14 homes lacked attic
• Discu ssed fin di ngs with
• The issue has virtually



insulation at time of
TX HERO
disappeared



inspection
~ Improved home





verification scheduling





(72 hour window)




Roughly one third of the
• Discu ssed fin di ngs with
• Standard practices were



homes used inconsistent
RESNET, TX HERO
established by TX HERO



climate zone for analysis
• Increased the awareness
and RESNET clarified




of climate zone usage
language in specifications




and the selection of
• No longer an issue




correct weather files to





use in plan analysis and





software modeling





~ Track rating providers'





climate zone usage




Result

• Passing rate increased





from 92% in 2004 to 99%





in 2006

I


,
ICF Corrective Action Plan at Work
|	2005	| 1%of homes failed to meet ENERGY STAR qualifications |
Issue
Act on Taken
Result
Many raters did not
• Discussed findings with
¦ Issue has somewhat
enter valid coil and
TX HERO
improved
condenser data for
• Discussed with raters and
¦ However, still a minor issue
HVAC systems
providers with greatest

failure rates

There was a
• Discussed findings with
¦ Issue has somewhat
discrepancy between
TX HERO
improved
HERS scores reported
• Discussed with raters and
¦ However, still a minor issue
online and final
providers with greatest
REM/Rate files
failure rates

ICF Corrective Action Plan at Work
|	2006	| 2% of homes failed to meet ENERGY STAR qualifications |
Issue
Action Taken
Result
Many homes did not
• Discussed findings with
TBD
have a valid ARI
TX HERO

SEER match
• Redesigned online


system to require ARI


reference number upon


submission of home

61.7% of homes had
• Discussed findings with
TBD
a different HERS
raters

scores in the
• Suggesting

REM/Rate files vs.
improvements in data

the online system
collection and reporting

A large percentage
• Discussed findings with
• Proposing acceptable
of homes had a
TX HERO
range of 75 - 100 sqft for
different floor area
~ Working with TX HERO
approval by all
reported in the REM
to establish acceptable
stakeholders
file, online system
variance for floor area

and the QAQC
~ New RESNET standards

calculated floor area
should address

5

-------



ICF Trends & Challenges
NTCftHATIONAl w

For the Rating Industry:

- Raters are generally following RESNET standards.

• Discrepancies typically result when there are ambiguities in

standards that lead to misinterpretations.

- The efficiency of equipment is NOT being verified in the field.

• However, efficiency levels used in ratings are almost always

conservative.

- There seems to be a difference between the actual number of

stories of a completed home and the stories used in energy

modeling.

• Need to evaluate more to determine cause.

- The EPA sampling protocol is working.

• Batched homes are meeting ENERGY STAR specifications.
ICF
INTKHAIIOHJU.
Trends & Challenges
For Sponsors of Regional Programs:
- Almost all raters participating in the utility sponsored program
submit home data at the last minute.
• This makes it very difficult to evaluate homes and implement timely
corrective actions.
- Often times the REM/Rate files used to generate the final home
energy rating does not match the data submitted the Program.
•	important to streamline data collection process to reduce potential
for data reporting errors.
•	Look for ways to encourage and reward frequent transfer of data
and reporting by raters to the program.
•	Good news is raters use worst-case scenarios which results in
conservative reporting.
ICF
Conclusions
The Systems-Based QAQC Process Has Been Effective
In:
Validating information reported by HERS Raters;
Verifying peak energy demand and savings;
Strengthening the HERS rating industry;
-	improving the quality of home energy ratings;
-	Influencing positive changes in the national RESNET guidelines;
-	Establishing industry standards and best practices; and
Improving the design and implementation of the Oncor ENERGY
STAR Homes Program.
ICF
Thank You.
Questions?
6

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Advanced
ENERGY
THE BUSINESS CASE
FOR HIGHER
PERFORMING HOMES
A Report By Advanced Energy
The business case for higher
performing homes means designing
products that people actually want to
buy, and that builders actually make a
profit on—instead of persuading them
to do things they'd rather not do...
Advanced
For Homeowners (in 2004)...

"We didn ? pay any attention to


energy when we bought our


house. We were just thinking


about the size of the house, the

$*£139
number of bedrooms.., ?


"A lot of people buying my


homes today are driving

«
Hummers. Why in the world


would they care about saving

energy?"

Advanced

ENERGYy
For Builders...
"The main question is, am I going to
get pay back out of this?"
"If you really have to sell it to the
customer, then what's the
advantage?"

-------
For The Power Company...
"Promote it with a rebate,
if it's gonna cost $3,000,
i'd like someone to share
the hit."
Advanced
The Business Case Requires.
•	Homeowners have to prefer a high
performance house, even at a higher price
¦ Builders must become convinced they can
earn a higher ROI with a high performance
house
•	Power companies must see a benefit
Our Agenda...
Home Energy Efficiency Study (EPA)
Have energy efficiency programs in new home construction
resulted in a reduction of energy consumption (HVAC)?
Homeowner Satisfaction Survey (DOE)
Are owners of program homes more satisfied than owners
of Paseline homes?
The Business Case
EPA Methodology
Lots of variables, lots of houses jri41]
House classifications
¦	Baseline [B]
¦	Energy Star [ES]
¦	Guarantee performance [GP]
Final data set [gas, no swimming pool]
House characterization [vintage, sq. ft., window type,
HVAC type, orientation, pool/no pool, fuel]
Monthly utility data [1998-2004]
Advanced
ENERGY,

-------
Phoenix, Arizona • Home Energy Efficiency Study
(EPA)
Baseline Homes.
9NGLE FAMILY
2004 NBA/HOME MARKET PERMITS ISSUED
Fhoenix, AZ
57,360
Atlanta, GA
57,316
Dallas-Fort Worth, IX
45,908
Houston, TX
45,103
Orange County, CA
43,142
Chicago, IL
35,810
Las Vegas, NV
31,741
Orlando, FL
27,493
Washington, DC
26,940
Miami, FL
24,653
Charlotte, NC
17,722
Raleigh, NC
12,083
The Triad
8,154
VWImington, NC
6,861
Asheville, NC
3,138
Source: U.S. Census Bureau, "New Privately Owned
Housing Units Authorized in 2004 (Unadjusted) by
Metropolitan Area"
Baseline Homes are homes built to local
code. Baseline homes built after 1998 were
ariecdotally considered to be 20% more
efficient than homes built to 1993 Model
Energy Code (MEC) standards in Phoenix.
Energy Star® Homes.

ENERGY STAR
Energy Star® Homes meet or
exceed the energy efficiency
standards set by the EPA's Energy
Star program. By definition,
Energy Star qualified homes are
independently verified to be at
least 30% more energy efficient
than the same home built to 1993
MEC, or 15% more efficient than
the state code, whichever is the
strictest.
Guaranteed Performance Homes...
Guaranteed Performance Homes are
designed to go beyond the Energy Star
program by using advanced energy efficient
materials and construction techniques to
lower residential energy use even further.
The standards and testing protocols are more
stringent than for Energy Star,

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What extra went into an EFL home...
¦	Construction Techniques
¦	Training
• Guarantees
¦	Feedback Loops
Advanced
Improved Cooling Efficiency
For cooiing, GP
homes are 20%
more efficient than
Energy Star homes
and 33% more
efficient than
baseline homes...
OOOUNGLOAD EFFICIENCY
(kWh/ft2/yr|
BASBJNE ENB?GY STAR
GUARANTY
PBRFORMANCE
Note: Data are for a home heated with gas and no swimming pool.
Advanced
Improved Base Load Efficiency
For base loads, GP
homes are 6%
more efficient than
Energy Star homes
and 16% more
efficient than
baseline homes...
BASE LOAD EFFICIENCY
(kWh/ft2/yr)
BASELINE	B?GY STAR
GUARANTEED
PERFORMANCE
Note: Data are for a home heated with gas and no swimming pool.
Advanced
ENERGY /
Base Loads Are Critical
COMPOSTION OF THE LOAD
44%

43%

39%
HCooling %
56%

57%

61%
H Base Load %
BASBJNE BJERGY STAR GUARANTfflD
PERFORMANCE
Note: Data are for a home heated with gas and no swimming pool.
Advanced

-------
TOTAL HOME EFFICIENCY
(kWh/ft2/yr|
Overall, GP homes
are 12% more
efficient than
Energy Star homes
and 23% more
efficient than
baseline homes...
Energy Star and Guaranteed Performance
homes are more efficient
Base loads amount to almost 60% of total
energy consumed
Advanced
Advanced
Note: Data are for a home heated with gas and no swimming pool.
7.27
5.22
1.39
Improved Overall Efficiency
Conclusions...
The DOE Homeowner Satisfaction Survey
Are owners of program homes more satisfied
than owners of baseline homes?
Methodology
Phoenix market [same sample as EPA study]
House categories [B, ES,GP]
Qualitative research
¦	Homeowners, builders, contractors - what drives
satisfaction?
¦	Focus groups
Quantitative research
¦	Survey sent to 7,000 homeowners [10%
response]
¦	Limitations
Advanced

-------
Over 700 Phoenix homeowners were surveyed.
It s Not Just About Efficiency
1 DEMOGRAPHIC
BASELINE
HOMES
ES HOMES
GP HOMES
TOTAL
SURVEY
Average household size
2.7
2.9
2.5
2.7
Percent of household occupants
under the age of 18
28%
32%
20%
27%
Percent of homes with household
incomes over $50,000
60%
67%
77%
68%
Percent of respondents under the
age of 45
47%
58%
33%
46%
Percent of homes over 1,600
square feet
53%
60%
86%
68%
Performance isn't just
about energy efficiency.
It's also about comfort,
reliability and
healthiness...
Advanced)
ENERGY J
It's Not Just About Efficiency
EISmBBI
The ability of your home to keep you comfortable year round
B/ennessof temp eratu res from room to room in the summer
and winter months
The ability of your air conditioner to cool your home down
quickly
The ability of your heating system to warm your home up
quickly
The ability to regulate temp eratu res during all seasons
The freshness of the air inside your home during those times
you keep doors and windows shut
ENERGY
EFFICIBMCY
The cost of cooling your home
The cost of heating your home in winter
RELIABLE
PERFORMANCE
The reliability of your heating & cooling system (i.e., repair
frequency)
The noise of your heating & cooling system when running
HEALTHINESS
The ability of your heating & cooling systems to reduce
allergies and other airborne ailment sin your home
Homeowners Are More Satisfied...
PERCENT OF HOMEOWNERS
THAT ARE COM PLETELY SATISFIED
With their home's ability to keep
them comfortable year round
¦ 49%
¦ 35%

27%


With the freshness of air inside
their house
40%
¦ 24%
20%


With the ability of their home to
reduce allergies and other
airborne ailments
32%
¦ 19%
15%
With the cost of cooling their home
22% ~ QP
H 14% ~ Energy Star
12% ~ Baseline

Advanced
ENERGYJ

-------
Lack Of Awareness
Energy Management
They're
often not
even
aware of
the type of
house they
own...
RESPONSES TO THE QUESTION
"WHAT CATEGORY OF HOME DO YOU

¦ iwr in*-
>"
28%
1 ¦ Performance Built
¦ EFL


60%
4%
84%


48%
¦ None or don't know
13%

39%

31%
¦ Energy Star
Those that Those that actually Those that
actually live in a live in an ES home actually live in <
baseline home	GP home
Advanced
1 Behavior
% Of Baseline
Homeowners
% Of ES
Homeowners
% Of GP 1
Homeowners 1
1 don't adjust the thermostat; 1 leave
it set on a fixed temperature even if
the house is empty for the day
33%
43%
52%
1 adjust the thermostat by a few
degrees, and then return it to the
desired setting when 1 return home.
62%
54%
46%
1 turn thethermostat off until 1
return later in the day
5%
3%
3%
Advanced)
ENERGYJ
Conclusions.
Requirements...
•	Consumer satisfaction rests on comfort,
reliability and perceived healthiness...as
well as efficiency
•	Energy Star and Guaranteed Performance
homeowners are more satisfied with
comfort, energy cost and healthiness than
baseline homeowners
•	Homeowners are still largely unaware of
the various energy programs
•	Homeowners in higher performing homes
manage their thermostats differently
•	Homeowners have to prefer a high
performance house, even at a higher price,
•	Builders must become convinced they can
earn a higher ROI with a high performance
house,and
•	Power companies must see a benefit.
Advanced

-------
A Major Consumer Marketing Opportunity
An Opportunity For Brand Leadership
The lesson from the Phoenix projects is that
there is latent consumer demand for the idea
of higher performing homes. However, the
value proposition should not be based solely
on energy-efficiency; it should be based on
comfort, perceived healthiness, reliability and
economy...
Advanced
There is an opportunity for utilities, builders,
and equipment manufacturers to build brand
awareness and identity. Leadership is up for
grabs on several fronts—product leadership,
brand leadership, and even "thought
leadership," where an enterprise becomes
indelibly associated with the idea of higher
performing "robust" homes.
Advanced
The Case For Utility Benefits
¦ Homeowner satisfaction
•	Stronger partnerships with
builders
•	More rational use of energy
in the housing sector
Advanced
ENERGY /
The Case For Utility Benefits
Our hypothesis is that peak demand is reduced
in a higher performing home...
~	Downsized HVAC systems
~	Improved thermal envelope
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Advanced

-------
Think About
Your Future
ThinkEnergyStar.com
Our Beginnings
"The Breakfast Club" was formed in 2001,
partnering with EPA to launch the very first
Nevada ENERGY STAR campaign.
The diverse steering committee included:
utility companies, HERS providers, three
builders and a new home magazine
owner/representative
Think About
Your Future
T H INKEnERGYSt A R. COM
Nevada ENERGY STAR® Partners
IK I YU I
2001-2007
ThinkEnergyStar.com
Mission
The steering committee's mission was to
develop a marketing campaign that
increased consumer awareness of the
ENERGY STAR brand and promoted the
building of ENERGY STAR homes to the
local homebuilders.
Steps in Building a Successful Campaign
Steering Committee designs the strategic approach each
year based on budget and needs of builders & the
market. Sets the timeframe of the campaign.
Steering Committee corresponds with builders and
supporting businesses, promoting the partnership 2 3
months in advance of campaign launch. This
correspondence helps the committee determine the
interest for the annual campaign's membership drive'
Think About
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ThinkEnergyStar.com

-------
Think About
Your Future
ThinkEnergyStar.com
Primary Campaign Outline
Kick-off Meeting:
Power Point presentation of Nevada ENERGY STAR
Partners' planned campaign
EPA key speaker
Caii for commitment
Call for committee members
Applications are distributed.		
- Q & A
Think About
Your Future

ThinkEnergyStar.com
Advertising and promotion
Geared to drive consumer to www.thinkeneravstar.com
•	Advertising Campaign promoting brand, partners &
designed to drive traffic to ENERGY STAR builders
•	Public Relations Campaign promoting ENERGY STAR
brand, promoting partners & educating'consumers
Think About
Your Future fj
T h inkEnergyStar. com
Website Campaign education; promote builders with
links; link to www.eneravstar.gov: post events
Radio & Television Campaign branding, education and
drive to website
Signage Campaign billboards drive to website; on-site
bootleg signs at subdivisions to promote the ENERGY	
STAR brand
Events - participate in local outreach events (e.g. Earth
Day Faire, builaer trade shows), schools (e.g. art
contest), home showcases; passport promotion; retail
coupon book promotions for ENERGY STAR products
Training Seminars sponsor well-known experts to train
builders & tradespeople on proper implementation of
energy efficient building practices; train subdivision sales
agents on selling techniques for high performance i	
homes
Think About
Your Future
ThinkEnergyStar.com

-------
Think About > /jf .
Your Futureg. £&>
ThinkEnergyStar.com
Nevada ENERGY STAR Partners'
Accomplishments
2001
7 Partners
5 Builders
2 Business Partners
2002
32 Partners
17 Builders
14 Business Partners
20% Penetration Rate of ENERGY STAR homes
17% ENERGY STAR consumer awareness
2003
34 Partners
19	Builders
15 Business Partners
46.4% Penetration Rate of ENERGY STAR homes
76% ENERGY STAR consumer awareness
2004
39 Partners
20	Builders
19 Business Partners
58.7% Penetration Rate of ENERGY STAR homes
87% ENERGY STAR consumer awareness
2005
42 Partners
23 Builders
19 Business Partners
60% Penetration Rate of ENERGY STAR homes
88.9% ENERGY STAR consumer awareness
Think About
Your Future WfffcdfifS
ThinkEnergyStar.com		
2006
55 Partners
28 Builders
27 Business Partners
67% Penetration Rate of ENERGY STAR homes
90% ENERGY STAR consumer awareness
Awards
Nevada ENERGY STAR Partners received the EPAs National Awards:
Partner of the Year: 2003
Sustained excellence: 2004, 2005, 2006, 2007
The framework of the Nevada
ENERGY STAR Partnership..
The formula for SUCCESS!
3
Think About
Your Future
ThinkEnergyStar.com

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Nevada ENERGY STAR Campaign
Committees & Responsibilities
Steering Committee
Consists of all committee chairs arid
honorary committee members
Role is strategic planning for the annual
campaign
Chairperson is responsible for partner
correspondence, reporting & organization
of campaign
Chairperson is responsible for
correspondence between all committee
members
Meets bi weekly 3 months prior to
campaign roll out, monthly thereafter
Update of all committees' progress by each
chairperson at meetings
Think About ^
Your Future ../'//j'
ThinkEnergyStar.com
Advertising Committee
Develops and places all media advertising
Las Vegas Review Journal 13 week campaign,
Saturday/Sunday 26 ads
Possible special section, RJ as media sponsor
Las Vegas New Homes Guide
Full page builder ad (June-August)
Full page partner ad (June-August
Pull out insert/map (July)
Think About
Your Future
ThinkEnergyStar.com
PR Committee
Develops and oversees all PR stories and activities
Las Vegas Review Journal 13 weeks, Saturdays/Sundays = 26
stories
Las Vegas New Homes Guide
New Homes Guide Platinum Business Partners Advertorial (July)
ENERGY STAR Month - declarations from all major municipalities
in southern Nevada	RS
Website Committee
Updates www.thinkeneravstar.com website with
new consumer educational information
Maintains the website's builder links, events,
public relation articles, partner support
4
Think About
Your Future
ThinkEnergyStar.com

-------
Think About
Your Future
ThinkEnergyStar.com		
Technical/Education Committee
Training seminars specific to building industry (including builder's
construction, purchasing, design departments,) trade companies & buildin
officials.
Houses that Work by Gord Cooke through EEBA
New ENERGY STAR guidelines including Thermal Bypass Checklist
Sales & Marketing Training to all builders' and trade companies sales &
marketing teams.
Selling the High Performance Home by Gord Cooke through EEBA
ENERGY STAR Qualified Homes Thermal Bypass Checklist Manual produced
by Nevada ENERGY STAR Partners		
Note: Training Seminars- Exclusive to Nevada
ENERGY STAR Partners
Think About
Your Future
THINItENERGYSTAR.COM

How do you initiate & drive a partnership within your
market?
It s all about the people behind the campaign. Seek out strong
& passionate marketing, networking, market and utility experts
to drive the campaign.
Builders, trade contractors, HERS providers & raters, utilities, bank &
mortgage companies, PR firms, advertising firms, energy efficient
product/material suppliers, state & local government entities & builder .	
associations		y~
Think About	lOl
Your Future
ThinkEnergyStar.com
2007 Campaign Goals
Designed to provide a sustained local presence for ENERGY STAR and help
build consumer awareness of the benefits of ENERGY STAR qualified homes
and the builders who offer them
Generate and drive traffic to builders ENERGY STAR communities
Educate and train construction, sales and marketing teams about the
construction practices as well as features and benefits of ENERGY STAR
qualified homes
Globally position Nevada as the leading ENERGY STAR state as well as
the forerunner in energy efficiency and environmentally friendly living
Salute to our 2006 Nevada ENERGY STAR® Builder Partners
Amstar Homes	Desert Wind
American Premiere	Homes
Astoria Homes	Distinctive Homes
Avante Homes	Engle Homes
Celebrate Homes	KB Home
Centex Homes dba	Lennar El
Real Homes	Meritage Homes—
Concordia Homes	Pardee Homes
Think About
Your Future
ThinkEnergyStar.com

-------
Think About
Your Future
ThinkEnergyStar.com
Salute to our 2006 Nevada ENERGY STAR® Builder Partners
Puite Homes
Rhodes Homes
Rimini Home
Royal
Const./Spinnaker
Ryland Homes
Signature Homes
Southwest Homes
Sopra Homes
Standard Pacific Homes
Storybook Homes
Toil Brothers
Warmington Homes NV
Westmark Homes
Woodside Homes |
Think About
Your Future
ThinkEnergyStar.com		
Salute to our Nevada energy star® 2006 Business Partners
Platinum Partners
Builders Choice
Countrywide Home
Loan
Dupont/Tyvek
Energy Inspectors
Environments for Living
Howard Hughes Corp/Summerlin
Nevada Power
Go/of Partners
Milgard Window
Sierra Air
Southwest Gas
Think About
Your Future JW /
ThinkEnergyStar.com
Silver Partners
Consol - Comfort Wise
Energy Conservation Group
F. Rodgers Insulation	Mo\
K& K F ra me rs/KB F ra mers	''
Red rock I n su latio n	^Vhi
Honorary Partners
Rocky Top
Move.com
Select Build
Wholesale Lighting
Partners
Faiss Foley Warren PR
Lamar
• MSI
PIE Design & Marketing
Southern NV Home Builders Assoc.
Southern NV New Homes Guide
SCINC Marketing
Contact information for Nevada
Energy Star Partners @
www.thinkenergystar.com
Think About
Your Future
ThinkEnergyStar.com
|ENEBGVStAH|

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VI'
¦J1. flrcfncCflnvuny-
Evaluation Measurement & Verification (EM&V)
of California Energy Star New Homes:
Energy Savings Methodologies
Robert Kasman
Strategic Research & Evaluation
Customer Energy Efficiency
Pacific Gas & Electric Company
Tel: 415-973-4094
Email: rekl@pge.com
Energy Star for New Homes Utility Stakeholder
Meeting Atlanta, GA April 26-27, 2007
Presentation Highlights
Purpose of evaluation
Challenges of evaluation
Prerequisites for effective impact evaluation
General approach to evaluation
Impact evaluation methodologies used,
advantages and challenges (billing, metering,
modeling)
Select findings
Conclusions
I ftcficGamf
Overview of California 04-05 Energy Star
Homes Evaluation Activities
Objective
On-site
inspections
Billing
Analysis
Metering
Analysis
Modeling
Analysis
Participant
market actor
surveys
Non-participant
market actor
surveys
RNC
Baseline
Study
Impact
Evaluation
X
X
X
X
X
X
X
Process
Evaluation
X



X
X

Market actors include builders, homeowners, utility staff,
Home Energy Rater registry staff, and plan check
consultants
Background
Statewide program PG&E, SCE, SDG&E, SCG
2004-05 evaluation performed by RLW Analytics, Inc.
Energy Star Homes in CA means > 15% Title 24
Evaluation background
-	CA Evaluation Framework (document)
-	CPUC defined and approved SOW, utilities managed evaluation
-	04-05 Evaluation begun after program close in 2006
Number homes/dwelling units

Utility
2004-05 Dwelling Units
Single Family
Multi-Family
High Rise
Total
PGE
12,309
2,758
269
15,336
SCE
13,297
2,791
504
16,592
SCG
1,191
6,322
602
8,115
SDGE
4,316
7,257
733
12,306
Total
31,113
19,128
2,108
52,349
1

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California Energy Star Homes J!
Title 24 and 16 Climate Zones (CZ)
Widely varying energy usage
in each CZ
Title 24 requirements vary by
CZ
Energy Star program requires
HERS inspections
Coastal = CZ 1-7
Inland = CZ8-16
Single family units 86% inland
Multi-family units 59% inland

Purpose & Goals of Evaluatiosr

~ To help ensure good decision making for energy

program resources ($)

~ Estimate specific program effects, for example:

- Program cost effectiveness?

- Are savings "real"?

- What are aross and net savinas (impact evaluation)? (Focus

of this presentation)

- And many others

~ Attempt to understand how program effects occurred

to make recommendations for increased program
effectiveness
To fulfill requirements
6
CNEfi'Cy
Fundamental Challenge of ??
Impact Evaluation
Measuring energy use that didn't happen
For Energy Star New Homes:
Estimating program effects of new Energy Star homes
compared to non-participant homes
Determining appropriate participant classes for
evaluation (e.g. by utility, climate zone, SF vs. MF,
single story/multi-story, end-uses, energy types,
others)
Estimating energy savings of even a single home is
challenging!
Evaluation is part science and part art
Program Timing
~	Time to build-out projects typically (1-3 years)
~	Participant accounting is critical
California program impacts are accrued when they
are realized (built/installed, inspected, approved)
This can be years after the program application is
completed for new construction
Building code changes can occur every few years
~	Net result: ES homes evaluated in 2006 may be
from program years '03, '04, '05, '06 and span
more than one building code
I!
'
2

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Approach to Evaluation
~ Sequential vs. Integrated Evaluation
~ Evaluation results 2+ years after program cycle do
not support timely decision making
Prerequisites for Effective Evaluatibn'*"
~	A well-conceived program theory and logic
model
~	Complete and accurate program tracking data

California Energy Star Homes '04-'05
Evaluation Activities
~	Billing Analysis
~	Metering Analysis
~	Modeling Analysis
Billing Analysis

Approach and advantages
Examine the billed energy use of the participants and non-participants
-	Uses existing metered consumption data
Possible to have very large sample sizes (both P and NP)
Challenges
Data acquisition - Multiple fuel types provided by multiple sources
-	Data management
De-aggregating billing data (example: cooling)
Large variability of household usage (variance can swamp differences)
Controllingfordifferencesin participantsvs. non-participants(e.g. floor
area, occupancy, income, stories)
Behavior - how do participant intentions and behavior affect energy
savings? E.g., snap-back, energy efficiency attitudes, etc.
Responses
Use regression analysis to statistically control for other factors affecting
energy consumption
Carefullyselectlargesamplesofparticipantsandnon-participants
-	Careful data QA/QC
3

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End-use Metering Analysis
Modeling Analysis
Approach and advantages
-	Directly meter energy usage on specific end-uses of interest
(space heating, cooling, and water heating)
-	Focuses on the affected measures and end-uses to reduce
variation and bias from other factors
-	Examine the installed measures in a sample of the participants
and use the engineering model and site-specific data to the
savings at each site.
!~ Challenges
-	Data acquisition - Cost, time, losses, access to homes
-	Variance of usage still very large
-	Sample size(s) - how many participants (and NP's) for meaningful
results?
-	Sample bias - are the samples representative?
Measurement plan - what are the key factors affecting use or
n savings? Behavior - how do participant intentions and behavior
R affect energy savings? E.g., snap-back, energy efficiency
attitudes, etc.	13
~	Approach and Advantages
-	Use energy modeling to simulate usage and savings
-	Takes advantage of models created for code compliance
-	Can be performed on entire population of participants
-	Can compare
~	Challenges
-	Compliance software (models) not intended to estimate energy
consumption
-	Data acquisition ~ Requires obtaining/modeling representative
non-participant homes (Requires a baseline study)
-	Trickier for multifamily housing
-	Homes often not built exactly as modeled
-	Program compliance is also through modeling, so not an
independent verification
SH
Select Results (1)
Billing, metering, and modeling methodologies
showed some conflicting results
Metering analysis showed less overall energy
usage than models predicted
Billing analysis sometimes showed greater
energy usage in Energy Star homes
Metering and billing analyses showed large
variance in usage (as expected)
Select Results (2)
~	Orientation of homes can have a significant
impact on modeled energy savings
~	Production homes usually modeled N. E, S, W
Climate
Region
End Use
Single Family
MultiFamily
B-Ratios for
Orientation
Adjustments
B-Ratios tor
Orientation
Adjustments
Coastal
Cooling
1.46
1.35
Heating
1.24
1.14
Water Heating
1.00
1.00
Inland
Cooling
1.25
1.27
Heating
1.17
1.07
Water Heating
1.00
1.00
Ratios of energy savings from average orientation to worst orientation
~ Example: Inland cooling modeled energy savings
n averaged over N, E, S, W is 25% greater than the worst
orientation's energy savings	16
4

-------
Select Results (3): Single Familyfl
Free Ridership Varies by End Use
Statewide Single Family Energy Savings of Participants and Energy
Savings of Non-Participants Above Title-24
~ Energy Savings of
Participants abo\
non-Participants
¦	Energy Savings of
Non-Participants
above Title-24
¦	Proposed Energy
Consumption of
Participants
Total height of bar represents Title 24 Standard design energy use
Conclusions

Integrated approach to evaluation preferred over sequential
Single family impact analysis is complex, multifamily even harder
Critical for program (and evaluation) to define "savings" as inclusive
or exclusive of occupant behavior (take-back)
Large variance in individual energy usage challenging particularly
for metering methodologies
Evaluators must carefully consider participant classes for evaluation
(results may vary by end-use, fuel type, other classes)
Modeling software appears to be a poor predictor of consumption,
but may be good at estimating average savings
Home orientation can have a significant impact on energy savings -
large opportunity for savings in simple passive solar design
The cost of engineering approaches depends on the accuracy of the
tracking estimates of savings
Final report available at www.calmac.org in May
5

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First Annual ENERGY STAR® Residential Program Sponsor and Utility Partner Meeting Feedback
Following the First Annual ENERGY STAR Residential Program Sponsor and Utility Partner Meeting in April 2007, attendees were asked to provide feedback on topics
discussed during brainstorming sessions in the areas of builder barriers, program design, marketing and implementation, and program evaluation. 31 stakeholders
provided input and identified what they believed were the highest-priority items in each category, which are noted below in the form of a tally and corresponding
percentage.
PART 1: BUILDER BARRIERS
Tally
Percentage

25
81%
Lack of education among builders, subcontractors, builder sales staff, and homebuyers
21
68%
Overall cost to participate in the ENERGY STAR program
18
58%
Perception that there is no consumer demand for ENERGY STAR
16
52%
Challenge of selling the value of the invisible
16
52%
Complexity of the qualification process and added "hoops" to obtaining return on investment (e.g., money, time)
16
52%
Turnover of subcontractors
15
48%
Resistance to change in the homebuilding industry
14
45%
Builder's perception of the level of effort required to build efficiently
13
42%
Difficulty in securing an "internal champion" and internal coordination to keep the builder on-board
12
39%
Builder's perception that they already build efficiently
12
39%
Lack of builder awareness of the bigger picture (e.g., energy efficiency, the environment)
12
39%
First-cost barrier in soft market conditions
11
35%
Perception that business is considered "good enough" without ENERGY STAR
9
29%
Lack of technical staff infrastructure, including subcontractors
9
29%
Challenge of selling non-energy benefits (i.e., perception that ENERGY STAR is just an energy program, lacking other key aspects, such as
indoor air quality (IAQ), durability, etc.)
8
26%
Lack of quality subcontractors in the market
8
26%
Risk to participate
8
26%
Administering and understanding new program requirements, such as the Thermal Bypass Checklist
8
26%
Changing market conditions (e.g., industry slowdown)
8
26%
The "chicken-and-egg" dilemma, where a HERS infrastructure is required to establish a strong builder base
7
23%
Lack of appraisers who recognize the value of ENERGY STAR
6
19%
Existence of competing programs (e.g., green programs)
6
19%
Lack of a commitment to quality in new construction
5
16%
Difficulty to ensure tight ducts
4
13%
Regulators not recognizing the value of marketing
4
13%
Value of ENERGY STAR relative to the value of "green"
4
13%
Design challenges exist for some housing types
4
13%
Lack of support from state officials (e.g., economic, development, code)
4
13%
Lack of tangible involvement by financial institutions
3
10%
Fear of the unknown
1 of 7

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3
10%
Complexity of qualifying multi-family dwellings, particularly in markets where they are common
3
10%
Difficulty to ensure proper HVAC sizing and maintenance
3
10%
Integrated risk management in builder operations
2
6%
Navigating recent changes within RESNET (e.g., HERS score to HERS index)
1
3%
Increase in high-rise multi-family dwellings
1
3%
Building performance specification infrastructure
PART 2: REGIONAL FACTORS MOST IMPORTANT TO CONSIDER IN PROGRAM DESIGN
Tally Percentage	
22
71%
Maturity of the HERS infrastructure in a market.
22
71%
Overall profile of builders in a market including demographics and size (e.g., production, custom)
19
61%
The rigor of current state and/or local building code
17
55%
Existing awareness of the ENERGY STAR for New Homes program
14
45%
Cost-effectiveness to implement ENERGY STAR from the sponsor's perspective
13
42%
Size of the market
12
39%
Building practices of subcontractors in the market
12
39%
Existing awareness of residential energy efficiency
11
35%
Presence of other programs in the market (e.g., green programs)
11
35%
Prevalent housing type (e.g., multi-family, single-family)
10
32%
State of the economy and strength of the housing market
8
26%
Technical maturity of the building industry
8
26%
Existence of other collaborative efforts (e.g., the activities of current players in the energy-efficiency industry)
7
23%
State regulations regarding utility implementation
7
23%
Availability of funds to design and implement a program
7
23%
Program growth rate, which can help tremendously with consumer buy-in
5
16%
Presence of other utility programs that overlap
4
13%
Utility rates in the region
4
13%
Cost recovery factors when determining the level of investment in a program (e.g., performance bonuses as opposed to strict revenue
requirements)
4
13%
Availability of other state incentives
3
10%
Type and number of climate zones in the region, which can affect design
2 of 7

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PART 3: PROGRAM DESIGN LESSONS LEARNED
Tally
Percentage

23
74%
Since no cookie-cutter approach exists, the approach must be modified and adapted according to individual markets
23
74%
Understand the market before designing the program
23
74%
Develop relationships with builders and keep in touch
23
74%
Build your ability to leverage other stakeholders, including manufacturers and suppliers, for training
19
61%
Communicate with partners regularly
19
61%
Facilitate a strong, established HERS infrastructure
16
52%
Understand that markets are different, even within a region or state
15
48%
Consider the value of engaging with allies, such as home builders associations (HBAs), but do not allow this involvement to become a hindrance
14
45%
Establish your educational training platform prior to program launch
12
39%
Allow market research to drive goals and design
11
35%
Manage change effectively
11
35%
Understand that a direct correlation does not exist with regard to the amount of incentives offered and market growth
11
35%
Focus on helping your serious partners be successful (e.g., first adopters of the program)
10
32%
Consider a diversity of incentives
10
32%
Design your program to be flexible, as consumers respond differently and can be difficult to reach
10
32%
Do a good job of telling good news (e.g., avoid delivering only bad news)
9
29%
Do not overlook the affordable housing market to helpjump-start a program
9
29%
Changing behavior is difficult. Therefore, consider coupling ENERGY STAR with other existing energy-efficiency programs.
8
26%
Consider your long-term plan; avoid relying on being too reactive
7
23%
Realize that single-year programs are more challenging than multi-year programs
5
16%
Embrace change, even if it's uncomfortable
5
16%
Having an infrared camera can encourage better quality construction
4
13%
Sell change as substantive value
4
13%
Realize it is challenging to sell the value of ENERGY STAR to home energy raters in a small housing market (i.e., a market with low housing
starts)
3
10%
Establish goals. Help partners achieve goals and have your own clear energy goal to reduce peak demand, which is helpful when code changes
1
3%
Do not rely on the home energy rater to determine the market for you
1
3%
Only address customers you can serve (e.g., only apply incentives to specific geographic areas)
1
3%
Comparing energy efficiency in homes is challenging as homes vary on multiple levels. It is best to compare homes with similar size, plug load
and construction type
3 of 7

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PART 4: PROGRAM DESIGN BEST PRACTICES
Tally Percentage	
21
68%
Understand the local housing market
18
58%
Integrate allies (e.g., local HBAs)
17
55%
Develop a strong HERS infrastructure
15
48%
Leverage partners for training
15
48%
Provide advance notification (e.g., six to 12 months) before making changes
15
48%
Ensure tight QA/QC
14
45%
Provide technical support to partners
13
42%
Offer sales training to builder's staff
13
42%
Provide reasons for builders to participate
12
39%
Consider all of your options for incentives; the high-cost option is not necessarily the best option
10
32%
Integrate builder networking into your program (e.g., quarterly round table discussions)
10
32%
Incorporate a tracking system/database to ensure you are meeting your goals
10
32%
Provide incentives for builders to educate and market to consumers to increase consumer awareness
10
32%
Incorporate a homeowners manual and/or customer satisfaction survey
10
32%
Incorporate partner recognition (e.g., awards)
9
29%
Use HERS raters as sales force to deliver the program
9
29%
Provide training seminars to HERS industry and other contractors so they can later train (e.g., train-the-trainer)
9
29%
Incorporate a continuous improvement feedback mechanism to obtain feedback from builders
8
26%
Understand the differences between large and small builders
8
26%
Provide HERS rater training
8
26%
Incorporate a performance improvement feedback loop to builders (e.g., trades, products, testing trends)
8
26%
Do not offer free ratings as an incentive; offer cash or marketing instead
7
23%
Develop consumer testimonials
7
23%
Invest in experts
7
23%
Plan for the long-term and avoid being too reactive
6
19%
Attempt to achieve a balance of ENERGY STAR homes to consumer demand (e.g., avoid creating customers when there is no supply, or creating
supply when there are no customers)
5
16%
Tailor incentives based on actual home performance or program participation performance
5
16%
Monitor the HERS infrastructure
4
13%
Provide incentives in the form of vouchers (e.g., give $500 vouchers to the builder for rating services)
2
6%
Perform technical research (e.g., understand how technology works or fails and whether you can afford it)
2
6%
Design an incentives program for cooperative advertising in a voluntary or mandatory manner
4 of 7

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PART 5: MARKETING AND IMPLEMENTATION LESSONS LEARNED
Tally Percentage	
24
77%
Network with all partners, including builders and raters
16
52%
Integrate local allies, including HBAs
15
48%
Understand each builder's production cycle and gain familiarity with their subcontractors.
13
42%
Coordinate with builder's advertising and promotional campaigns
12
39%
Incorporate continuous improvement
12
39%
Engage local Realtors
12
39%
Integrate builder feedback upfront
10
32%
Do not allow the key marketing message to get too technical (but don't avoid technical information entirely)
9
29%
Focus your efforts on champion builders
8
26%
Allow for six-month notification before changes
8
26%
Respond to external forces as best as possible (e.g., Title 24, Thermal Bypass Checklist)
7
23%
Invest in experts who can facilitate trainings, etc.
6
19%
Create an assortment of marketing materials for builders to choose from and be able to customize (if you give a builder $300 worth of brochures
they don't select for themselves, they may just throw them out after an event)
6
19%
Link incentives to the builder sales person so they are motivated to sell
3
10%
Limit the quantity of materials you distribute (e.g., don't provide 400 copies of a brochure to a partner unless you're relatively certain they will use
this volume and type)
1
3%
Provide a technical story for the "engineer-type" buyers to gain their interest
5 of 7

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PART 6: MARKETING AND IMPLEMENTATION BEST PRACTICES
Tally
Percentage

24
77%
Provide consumer education on the value of ENERGY STAR
20
65%
Incorporate builder sales training
19
61%
Recognize partners (e.g., awards)
16
52%
Sponsor events (e.g., ENERGY STAR Builder Summits, Seminars)
16
52%
Provide technical training and leverage funding from partners
15
48%
Provide performance feedback to builders (e.g., improvements or regression in duct tightness)
15
48%
Create a homeowner manual
13
42%
Develop consumer testimonials
13
42%
Integrate ENERGY STAR in regional MLS on-line real estate database
12
39%
Provide technical support
11
35%
Ensure tight QA/QC
11
35%
Incorporate tracking systems to evaluate efficacy
10
32%
Provide marketing and implementation training
10
32%
Provide guidance on how to use marketing tools
9
29%
Measure the impact of marketing efforts
9
29%
Emphasize public relations (e.g., local TV stations, events). Consider showcasing stories about specific builders and inform local media about
events like builder summits and seminars
8
26%
Coordinate and co-market with green programs available in the market
8
26%
Provide incentives and allocate a portion of incentives to marketing
8
26%
Link with events like Parade of Homes
8
26%
Publish articles and ads in local HBA monthly newsletters to outreach to many players in the market including builders, remodelers, and suppliers
8
26%
Cross market with ENERGY STAR products (e.g., offer coupons)
7
23%
Create incentives in the form of branding materials for use in model homes to promote ENERGY STAR (e.g., using model homes to show and
sell the attributes of ENERGY STAR)
5
16%
Administer training to HERS industry and other contractors so they can later train (e.g., train-the-trainer)
5
16%
Monitor complaint rates and types of complaints
5
16%
Formulate an advertising campaign
5
16%
Design a Web site for the regional program
5
16%
Participate in EPA's ENERGY STAR Outreach Campaign
4
13%
Collect customer surveys
4
13%
Utilize and encourage use of EPA's ENERGY STAR Marketing Toolkit
3
10%
Use utility bill inserts to provide information and updates to consumers
3
10%
Publish articles and ads in professional publications that reach the local building industry
6 of 7

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PART 7: PROGRAM EVALUATION BEST PRACTICES
Tally
Percentage

23
74%
Establish baseline energy costs
19
61%
Monitor how HERS raters are performing ratings
19
61%
Track program data (e.g., core metrics)
18
58%
Evaluate the success of marketing efforts
16
52%
Incorporate a corrective action plan
15
48%
Understand that there is no "silver bullet" to program evaluation, and that you must work within your limits
15
48%
Enforce QA/QC with builders
15
48%
Conduct customer satisfaction surveys
15
48%
Conduct on-going research
14
45%
Ensure that program implementation is integrated with program evaluation
14
45%
Ensure that program goals are aligned with program-evaluation activities
13
42%
Perform utility billing analysis to evaluate real savings
12
39%
Involve stakeholders in every step of the process to keep them informed
11
35%
If available, involve the regional HERS association (e.g., Texas HERO)
11
35%
Tailor the evaluation so that it is proportionate to participation
11
35%
Determine the return on investment for marketing
10
32%
Utilize builder surveys to assess builder's perspective
10
32%
Utilize homebuyer surveys of those who have purchased new homes in the market
8
26%
Tailor the evaluation so that it is proportionate to the participant profile (e.g., climate zones, housing types)
8
26%
Collaborate with other stakeholders
7
23%
Use outside, independent raters to perform the technical evaluation
6
19%
Leverage allies to perform the evaluation
6
19%
Consider integrated versus sequential evaluations
6
19%
Research evaluation options and other evaluations that have already been done to avoid reinventing the wheel
5
16%
Define your own acceptable "tolerance" for accuracy
5
16%
Place importance on conducting research, which can back up the technical underpinnings
4
13%
Consider all options for program evaluation
3
10%
Consider the sample size, as this is critical to billing analysis
7 of 7

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Appendix C
WECC Homeowner Manual

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WISCONSIN
ENERGY STAR
HOMES
Wisconsin ENERGY STAR'Homes
Owner's Manual
LerghsleJ
% | focus on energy-
® The power is within you.

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!1E;
r!


1 ¦
i Igti,'


Congratulations
Welcome to your new high performance Wisconsin ENERGY STAR
Home. This home is unlike any other you've ever lived in. It's
tighter. Smarter by design. Safer. And most importantly, this house
has been evaluated, built and tested to help make it a comfortable,
safe, durable and energy efficient home for you and your family.

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Your new Wisconsin ENERGY STAR Home gives you the power to...
•	Control indoor air quality and comfort
•	Manage moisture, odor and condensation
•	Enhance combustion safety and building durability
•	Lower your energy bills saving you money by saving energy
Orchestrate the performance.
Your new Wisconsin ENERGY STAR Home was designed, built and tested
for exceptional performance. Think of it as a symphony of individual
systems that work together seamlessly. The walls and windows, heating,
cooling and ventilation equipment, even the finishes and furnishings you
choose all work together to affect you and your comfort.
Now you're in control.
Because of its special characteristics, your new Wisconsin ENERGY STAR
Home requires some special care. After all, it can only work as well as you
can maintain and respect its design and performance characteristics. This
Owner's Manual will help you maintain and control its systems for optimal
performance.
Read the following pages carefully and follow the recommended tips.
If you have any questions about your home's performance or operation,
notify your builder or contact Wisconsin ENERGY STAR Homes at
800.762.7077.
Wisconsin ENERGY STAR Homes is a voluntary program of Focus on Energy. Its goals are to
enhance your comfort and safety in a durable, energy efficient new home. Because of
variations in individual care, operation and maintenance, Wisconsin ENERGY STAR Homes makes
no warranties, expressed or implied, as to safety, comfort or durability of program homes. Your
concerns and comments are always welcome. 800.762.7077 focusonenergy.com

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Every Wisconsin ENERGY STAR Home is built and tested to be "tight," meaning that
unwanted and uncontrolled air movement is virtually eliminated. This draft-free
design and construction is one of the primary reasons why your home is more
comfortable, durable and energy efficient. It also means you have to control the
movement of air in your house through appropriate use of the mechanical
ventilation equipment. Read the Certification Report in this folder for details on the
ventilation equipment and tested capabilities specific to your home. For optimal
comfort and indoor air quality, follow these tips:
Use a hygrometer.
A hygrometer is an electronic instrument that measures relative humidity (RH). For
ideal comfort and indoor air quality, regularly monitor the relative humidity in your
home with a hygrometer.
•	In winter, operate your ventilation equipment to maintain an indoor RH between
30 percent and 40 percent at 70°F.
•	In late spring, summer and early fall, higher indoor RH is normal and can
be controlled using air conditioning and/or a dehumidifier.
Watch your windows.
Excessive or repeated condensation on your windows is a sign you may not be
managing your house properly. Either there's too much moisture in the air or the
window surface is too cool.
•	Reduce moisture in the house by using your ventilation equipment.
•	Increase the indoor air temperature until the condensation disappears.
In some new homes, a little condensation along the bottom edge of a window may
appear during the first and sometimes second heating seasons. This is due to the
additional moisture from drying concrete and other building components. Don't
worry. Just wipe off the moisture to protect the window, wood and finish. Then

-------
operate your ventilation equipment a little more frequently to eliminate the extra
moisture. If the problem continues, notify your builder and contact Wisconsin
ENERGY STAR Homes at 800.762.7077.
Use window coverings wisely.
Interior screens, blinds and other coverings block air flow to the window and
significantly cool the glass surfaces. In winter, this increases the potential for
condensation and associated problems. It's better to let air periodically circulate in
front of the windows during the winter.
•	Remove interior screens where and when possible.
•	Avoid leaving curtains or blinds drawn for long periods of time.
Ventilate for people.
Most people benefit from fresh air. Operate your ventilation equipment periodically
when your house is occupied. See your Certification Report for details.
Vent during household activities.
Cooking, bathing, cleaning and using the bathroom produces moisture and odors
as well as other potential indoor air pollutants. Use your ventilation equipment
located in those areas during and for about 20 minutes after each activity to help
control the buildup of such contaminants.
Pre-set your thermostat.
Throughout the year, try to avoid extreme temperature settings and/or large swings in
indoor air temperature. Doing so can help reduce your heating and cooling costs while
maintaining consistent comfort and control over relative humidity and possible window
condensation. Whether you have a programmable thermostat or a manual one...
•	Keep temperature changes to around 5°F for at least an eight hour period.
•	Follow manufacturer's recommendations for setting and use of the thermostat.
•	Avoid indoor air temperatures below 65°F or above 78°F for long periods
of time.

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An important safety feature of your Wisconsin ENERGY STAR Home is the type of
combustion equipment that has been installed, such as heating, water heating
and/or any fireplaces. This equipment is specifically designed to prevent harmful
combustion gases from possibly spilling back into the home, causing safety and
indoor air quality concerns. For additional safety, durability and energy efficiency,
follow these tips:
Read the manufacturers' instructions.
Be sure to follow manufacturers' recommendations for care and maintenance of all
combustion equipment. Maintenance and inspections often include (but are not
limited to):
•	Inspect and change or clean furnace and range hood filters.
•	Clean ranges and ovens periodically to avoid grease and food accumulation.
•	Schedule professional inspections and tune-ups.
•	Inspect air intake and exhaust ports. Keep them clear of any obstructions such
as overgrown shrubbery, grass clippings, insects, bird nests and snow.
Keep wood burning fireplace doors closed.
Burning wood produces carbon monoxide (CO). To prevent this harmful gas from
entering your home, keep the fireplace doors closed and latched during operation.
This forces the fire to draw its air from outside the home (as designed), and expels
combustion by-products up the chimney instead of into your home. Make sure the
fireplace doors are tightly closed and latched before retiring for the night.
Use your range hood.
Cooking releases moisture and other unwanted indoor air pollutants, especially when
you first turn on the range or oven and/or when you use your oven's "self-cleaning"
mode. Use the ventilation equipment or fan during and for 20 minutes after cooking
(with the range or oven), and for the entire duration of self-cleaning mode.

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Carbon monoxide (CO) is a colorless, odorless, tasteless gas that has potentially
harmful health effects. This gas can be produced by a variety of combustion
equipment (gas water heater, range and/or oven, furnace, boiler and gas/wood
fireplace), as well as vehicles. To protect you and your family, your Wisconsin
ENERGY STAR Home was built with combustion equipment that meets specific
combustion safety standards. Your home also features a CO detector on every
floor that has a bedroom. Follow these tips to protect yourself further:
Listen to your monitor.
If the alarm on your CO monitor sounds, heed the manufacturer's recommended
actions. Always follow the manufacturer's care and maintenance recommendations.
Routine checks include (but are not limited to):
•	Check the batteries.
•	Monitor the continuous and/or peak level read out function (if applicable).
•	Replace old units every three to five years, per manufacturer's recommendation.
Look for the ENERGY STAR label.
Because of the way it's built, your Wisconsin ENERGY STAR Home is already more
energy efficient than homes built to Wisconsin's Uniform Dwelling Code. You can
further enhance the energy efficiency of your home, save on energy costs and save
resources by using ENERGY STAR qualified appliances, electronics
and lighting. By using less energy, they not only save you money,
but also reduce pollution and are better for the environment.
•	Get a list of ENERGY STAR qualified equipment at energystar.gov.
•	Find a local retailer that carries ENERGY STAR products at focusonenergy.com
or 800.762.7077.


| ENERGYSTAR|

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Focus on Energy is a public-private partnership offering
energy information and services to energy utility customers
throughout Wisconsin. The goals of this program are to
encourage energy efficiency and use of renewable energy,
enhance the environment and ensure the future supply of
energy for Wisconsin. 800.762.7077 focusonenergy.com
2 2 focus on energy-
® The power is within you.
©2004 Wisconsin Focus on Energy RES-2018-0904

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Appendix D
2006 North Carolina ENERGY STAR Conference Agenda

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AGENDA

o
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c\] 2
E
Tuesday, December^™



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ft £
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2 <

2:00-5:00
Early Check-In and Exhibit Set-
Up



LU ^
LU

2:00-4:00
HERS Rater Recertification Test


Q
—
5:00-5:00
Reception

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Ed Ed
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^ ©
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n

Wednesday, December^™



D
7:30-0:30
Registration and Breakfast (SPONSORED BY PROGRESS Energy)


5:30-5:40
Welcome




5:40-9:00
Energy Star Update - Sam Rashkin, EPA


9:00-9:45
Keynote Address - David Pressly, National Home Builders Association


9:45-10:30
Exhibits and Refreshments (SPONSORED BY PROGRESS Energy)

fa OA
C

DIAGNOSTICS
If you can't find it, you can't fix it
Classroom One
GREEN BUILDING
it's notjust the color of the paint
Classroom Two
MAKING IT WORK
Tips, tools, and tactics
Classroom Three
HVAC
Get your ducts in a row
Classroom Four
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Sea
Ko) 1
>< (©
Cs) £3
(S) ra

10:30-11:20
Moisture and Mold Mitigation
Francis Coniin, mSolve
NC HealthyBuilt Homes Update
Tommy Cleveland, NC Solar Center
Energy Star Homes & Tax Credit
"The Basics"
Scott Suddreth, Southface - NC
Energy Star HVAC
Requirements
Steve Baden, RESNET

	



Energy Star Software
T)aveg0frerts, Architectural Energy
HVAC Sizing & Design
Jeff Tiller, Appalachian State



11:30-12:20
IR for Energy Applications
Bret Monroe, Monroe Infrared
Energy Star Indoor Air Package
Sam Rashkin, EPA

ENERGY


Corporation
University


B
12:30-1:30

L u
N CH


£ Process Energy
* Duke
[4 Energy
Southface

1:30-2:20
Energy Star Insulation
Inspection
Steve Baden, RESNET
Green Materials & Site
Concerns
Joseph Crocker, ASU Energy
Selling Energy Star Homes
Keith Aldridge, Advanced Energy
Innovative HVAC Strategies
Anthony Stamatopoios, ihacos



Center



Appalachian

2:30-3:30
Exhibits
AND EFRESHMENTS (SPONSORED g, Y p UKE £ NERGY)

A
3:30-4:20
Energy Star Thermal Bypass
Checklist
Sealed Crawlspaces & Attics
Shaun Hassell, Advanced Energy
Home Performance with Energy
Star
Troubleshooting HVAC Problems
Mike lyons, Honeywell

AGENDA

Sam Rashkin, EPA
Patricia Piympton, DOE/NREi








A-103

1
I 2
I 3
I 4
I 5


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