Presentation on theme: "1 December 13, 2010 Retrofit Strategy Meeting Opportunities for Developing the Building Retrofit Industry and Market (BRIM) John Cleveland, Innovation."— Presentation transcript:
1 December 13, 2010 Retrofit Strategy Meeting Opportunities for Developing the Building Retrofit Industry and Market (BRIM) John Cleveland, Innovation Network for Communities Joel Rogers, COWS (Center on Wisconsin Strategy) Chinwe Onyeagoro, O-H Community Partners December 13, 2010 Rockefeller Foundation, New York City
2 December 13, 2010 Retrofit Strategy Meeting Agenda Meeting Purpose Develop a shared framework to guide funder investments in the development of the Building Retrofit Industry and Market (BRIM). Meeting Outcomes Agreement on broad approaches to : Develop a portfolio of promising BRIM development investments Improve the BRIM TA infrastructure and its post-ARRA design Improve collaboration between funders & USDOE and the field on BRIM development and TA Agenda 10:00Welcome and Introductions; Agree on Outcomes 10:15Project Process and Summary Recommendations 10:45BRIM Market Development Discussion 12:00Lunch 12:30TA Infrastructure Recommendation Discussion 1:30Strategic Collaboration Discussion 2:00Next Steps 2:30Adjourn
3 December 13, 2010 Retrofit Strategy Meeting Project Summary
4 December 13, 2010 Retrofit Strategy Meeting Project Purpose & Deliverables Conduct a scan of the technical assistance (TA) infrastructure for the building retrofit market, and recommend steps to support the design and development of a collaborative applied R&D innovation infrastructure for the industry. 1.Scan major providers of TA for the BRIM. 2.Identify issues in the current TA system and recommend steps towards their improvement. 3.Identify the requirements of an applied R&D and innovation infrastructure for the industry. 4.Facilitate a meeting of Better Building grantees to explore opportunities for collaboration on system development. 5.Facilitate a meeting of funders and USDOE to develop a shared strategy framework for investment in BRIM development.
5 December 13, 2010 Retrofit Strategy Meeting Process 1.Inventory of TA providers (156 total) 2.Secondary analysis of 78 players 3.Phone interviews with 27 individuals 4.Interim scan findings memo 5.Feedback on Interim Findings 6.Meeting of 19 Better Building sites (Oct 21) 7.Meeting with USDOE staff 8.Final report preparation
6 December 13, 2010 Retrofit Strategy Meeting Framing Observations Long-term, it’s about building a market, not implementing programs BRIM is not one market, but several related segments Most market segments are at a very early stage of development Most retrofit initiatives are at an embryonic state of implementation Developing markets is very long term work; focused investments in this market are a recent phenomenon BRIM investment needs to be approached simultaneously at the local and national levels This will require a shared framework for analysis and action It requires a long-term view and strategic coordination across multiple players – funders; federal government; local government; private and NGO enterprises Philanthropy can play a key role in market development
7 December 13, 2010 Retrofit Strategy Meeting Three Kinds of Work ACTIVITYDEFINITION Program Implementation Implementing retrofit programs and strategies in local and regional markets. Technical Assistance Advising implementers on program design, and linking them to other sources of knowledge and support, including their peers. Market Development Investing in knowledge, innovations, standards and institutions that support the development of self- sustaining market transactions There are three kinds of work that different players are doing in the BRIM niche. This scan focused on the second two – Technical Assistance and Market Development.
8 December 13, 2010 Retrofit Strategy Meeting Three Primary Opportunities Coordinate National Investments in Market Development Plan Now for the Post-ARRA TA Infrastructure Explore New Structures for Field Collaboration
9 December 13, 2010 Retrofit Strategy Meeting Findings & Recommendations – BRIM Development FINDINGSRECOMMENDATIONS Investing in market development is a specialized activity The BRIM is at a very early stage of development BRIM has several distinct sub- segments that need to be addressed differently Significant investments have been made in key aspects of market development There are many promising market development opportunities Market development investments are not well coordinated 1.Agree on a framework for BRIM development investments and systematically catalogue current initiatives and investments (funders; feds; private). 2.Create a three way partnership between USDOE, funders and market players to collaborate on market development investments. 3.Develop a network infrastructure to support collaboration and project execution on market investments over the long term. 4.Hold an annual BRIM Development conference.
10 December 13, 2010 Retrofit Strategy Meeting Summary of Findings & Recommendations – TA FINDINGSRECOMMENDATIONS USDOE is investing $20+ million in a national BRIM infrastructure USDOE Technical Assistance Program (TAP) funding is temporary; most funding ends by CY 2012 The current TAP is heavily focused on managing transactions; design of a knowledge management system is not yet apparent The process for quality control is not transparent 1.Build on the base created by the USDOE TAP initiative. 2.Start now to plan for a post-ARRA TA infrastructure. 3.Make sure that structure has a “learning system” that rapidly disseminates knowledge across players and markets; and use this system to inform market development investments. 4.Develop robust feedback loops and a continuous improvement process.
11 December 13, 2010 Retrofit Strategy Meeting Summary of Findings and Recommendations – Collaboration FINDINGSRECOMMENDATIONS USDOE investments are leading BRIM development, but many other players are also playing important roles. Two kinds of collaboration structures could help advance the field: A structure for formal collaboration between funders A vehicle for USDOE to interact with key players in the field, outside of program implementation relationships. 1.Formalize collaboration across funders through a Working Group structure. 2.Explore the best way to organize market stakeholders in ways that can align strategies for market development. (e.g. trade associations; coalitions; intermediaries; Federal Advisory Committees.) 3.Develop MOUs or other structures for collaboration between USDOE and both the Funders Working Group and market stakeholders.
12 December 13, 2010 Retrofit Strategy Meeting Top Down and Bottom Up…
13 December 13, 2010 Retrofit Strategy Meeting …With an Integrated Investment Strategy Funders Working Group USDOE & EPA Market Stakeholders
14 December 13, 2010 Retrofit Strategy Meeting Opportunities for Developing the Building Retrofit Industry and Market (BRIM) December 13, 2010 Rockefeller Foundation, New York City Supporting Slides
15 December 13, 2010 Retrofit Strategy Meeting Framing the Building Retrofit Industry & Market (BRIM) Opportunity
16 December 13, 2010 Retrofit Strategy Meeting Summary of Key Points BRIM is one segment of a much larger “green economy” sector Markets develop in stages – BRIM is at a very early stage of development BRIM has several distinct sub-segments that need to be addressed differently Significant investments have been made in key aspects of market development There seems to be consensus on the high level market development opportunities Market development investments are not well coordinated
17 December 13, 2010 Retrofit Strategy Meeting It Is About Building a Market, Not Implementing Programs Better Buildings Vision: “A self-sustaining market for building energy efficiency retrofits that results in economic, environmental, and energy benefits across the United States.” Living Cities, Lessons Learned: “Concentrated philanthropic investment together with unprecedented federal funding begs for coordination and intentional efforts to invest in creating an industry (supply, demand and an enabling environment for scaled transactions), not just disparate parts.”
18 December 13, 2010 Retrofit Strategy Meeting BRIM Is Part of the Larger “Green Economy” CategoryBrookings-Battelle Sub-Segments Energy Efficiency Battery & Energy Storage Technologies Electric/Hybrid Drive Technologies & Vehicles Energy Efficient Appliances Energy Efficient Building Products & Materials Energy Efficient HVAC & Building Control Systems Energy Efficient Lighting Energy Research, Engineering, & Consulting Services Fuel Cells & Hydrogen Green Architecture, Building Design, & Construction Other Energy Efficient Products Water Efficient Products Energy From Renewable Sources Biofuels/Biomass Geothermal Energy Hydropower Energy Solar PV Energy Solar Thermal Energy Waste-to-Energy Wave/Current/Ocean Power Energy Wind Energy Compliance & Training Regulatory And Compliance Training Natural Resource Conservation Conservation And Management Organic Farms And Organic Food Production Sustainable Forestry & Related Products Pollution and GHG Reduction; Recycling and Reuse Air & Water Purification Technologies Air/Water/Sewage/Solid Waste Management & Treatment Clean Coal & Carbon Sequestration Environmental Research, Engineering, & Consulting Services Green Building Products & Construction Materials, NEC Green Chemicals and Related Green Products Nuclear Energy Other Green Products Pollution Control & Prevention Public Mass Transit Recycled-Content Products Recycling & Reuse Remediation Technologies & Services Smart Grid Systems/Smart Metering Segmentation based on Brookings/Battelle Metro Green project
19 December 13, 2010 Retrofit Strategy Meeting BRIM Has At Least Five Separate Segments “Retrofitting of existing buildings to reduce overall energy consumption and greenhouse gas emissions.” Existing Building Stock: 40% of all energy consumption 72% of electricity 38% of carbon emissions $400 billion to heat and cool Single and two family residential Multi-family Residential Small C/I Commercial/Industrial Large C/IMUSH* *Municipal, University, Schools, Hospitals Each market segment has significant variations in customers, economics, drivers, and regulatory environments. Many segments have further defined sub-segments.
20 December 13, 2010 Retrofit Strategy Meeting Energy Consumption Varies by Building Type Source: USDOE, “Better Buildings Overview”, 11.10.10
21 December 13, 2010 Retrofit Strategy Meeting Markets Develop in Stages Market StageEarly MarketMarket GrowthMaturity Market for retrofits can be developed like any other market: by targeting and reaching additional consumer segments 2.5%13.5%34% 16% Late Majority Early Adopters Early Majority InnovatorsLaggards Rogers Innovation Adoption Curve www.valuebasedmanagement.net Source: “Market Development for Building Energy Efficiency Retrofits”, RW Ventures and O-H Community Partners
22 December 13, 2010 Retrofit Strategy Meeting Healthy Markets Have Common Characteristics SUPPLYDEMAND Perceived customer need Good value proposition Good customer information Consumer confidence in performance Clear performance measurements Affordable Low transaction costs Easy for buyers and sellers to find each other Trust in the transactions Feedback loops affect future quality Consistent industry standards that govern transactions High quality producers Adequate labor supply Occupational credentialing and certification systems Well developed supply chains OEM supplier standards R&D infrastructure that supports innovation Costs of ProductionCosts of TransactionsPerception of Need Healthy Market Characteristics
23 December 13, 2010 Retrofit Strategy Meeting Stakeholders Approach The Market With Many Motivations Customer Value Proposition Reduced GHG Emissions Economic Development Community Development Poverty Alleviation Robust Retrofit Market? How aligned are perceived customer needs with the desired environmental and economic development benefits? “Will the dogs eat the dog food?” Environmental and Economic Development Benefits Comfort Energy Savings Improved Home Values Helping the Environment
24 December 13, 2010 Retrofit Strategy Meeting It is Not Yet Clear Where Retrofits Fall in the Market Development Spectrum Source: Bob Weissbourd, RW Ventures Public PolicyIncentivesPrivate Exchange
25 December 13, 2010 Retrofit Strategy Meeting Some Retrofit Market Barriers SUPPLY EXCHANGE DEMAND Low margins compared to cost of sales Difficult to aggregate demand Some labor scarcity Requires new business models High owner transaction costs Difficult to assess competence & quality Multiple vendors required High effort relative to cost and benefit Consumers have other priorities No metrics to measure savings Value not reflected in equity Unaffordable for some segments Financing can be complicated
26 December 13, 2010 Retrofit Strategy Meeting Living Cities Market Development Framework
27 December 13, 2010 Retrofit Strategy Meeting Different Stakeholders Play Different Roles in Market Development Players Roles WhoPrimary Drivers Main Leverage Points Private “Fund, Transact, Deliver And Consume” Business and Consumers Economic Self- Interest Value Exchange Public “Set, Incent, Mandate And Reinforce Standards And Policies” Governments & Government Agencies Political Process Policy, Incentives and Regulation Civic “Build Field and Capacity” Non-Profits and Philanthropy Values, Norms Subsidies and Advocacy Source: OH Community Partners
28 December 13, 2010 Retrofit Strategy Meeting There Are Four Main Ways to Invest in Market Development Knowledge Creation Research on market dynamics; core technologies; best practices; benchmarking; etc. InnovationDevelopment of new products, services, technologies that advance the market. StandardsCreation of policy requirements & industry standards that enable consumer protection; fair trade; social equity; quality standards; environmental protection; etc. Institutions and Structures Organizations, trade associations, networks and other vehicles for organizing players for collaboration within the market.
29 December 13, 2010 Retrofit Strategy Meeting There Are Many Markets Where Foundations Have Played Important Development Roles Affordable Housing Public Education (Choice and Charters) Underbanked Consumers Sustainable Forestry Investments have spanned all four categories: Knowledge and R&D Innovations Standards and Policy Institutions and Structures
30 December 13, 2010 Retrofit Strategy Meeting Examples – Affordable Housing and Education Market Investment Knowledge Creation InnovationStandards and PolicyInstitutions & Structures Affordable Housing Ongoing research on best practices Programs in “weak” market cities CDFIs financing private developers Advocacy and design of public policies: Federal low income housing tax credits; federal housing vouchers; local zoning, land banking policies Guidelines for measuring housing affordability Building standards for low income housing Community development corporations LISC; National association of CDCs State housing authorities Public Education Studies about drop outs, teacher effectiveness, school effectiveness, etc. Start-up support for charter schools Support for experiments in school design; school vouchers; teacher pathways; student performance measurement systems Consumer access to information about school performance Charter authorizer standards for contracting with charter schools Advocacy and design for legal framework for school choice and charters City-based “centers” to support charter growth Various national and state associations of charter authorizers, schools
31 December 13, 2010 Retrofit Strategy Meeting Examples – Underbanked and Sustainable Forestry Market Investment Knowledge Creation InnovationStandards and Policy Institutions & Structures Underbanked Consumers Develop market intelligence (e.g., customer segmentation) Assess existing products and services (e.g., mobile banking) Promote partnerships Invest in new products and companies targeting underbanked consumers Development of industry best practice Identify & advocate on public policy issues Inform regulatory standards (FDIC, etc.) Creation of a market- engaging innovation capacity (CFSI) with investment fund Industry Roundtables Sustainable Forestry Analysis of global forestry markets and systems Development of sustainable forestry certification process Development of market-based branding partnerships (e.g., retailers) Development of sustainable forestry property easements Development of sustainable forestry principles and monitoring practices Indicators of SF at country and “unit” levels Development of certification organization Support for NGO advocacy organization
32 December 13, 2010 Retrofit Strategy Meeting Some Examples of National Investment From Other Fields ExamplePurpose Cooperative Extension Service and Land Grant Universities Land Grant Universities established in 1862; CES in 1914 Roles changed over the last 100 years Primary focus on the improving productivity of U.S. agricultural industry Fraunhofer- Gesellschaft German network of 57 research institutes focused on manufacturing intellectual property development and consulting Areas include microelectronics; process engineering; materials; sensors; etc. $1 billion in annual revenues; 50% government funded National Center for Manufacturing Sciences Founded in 1986 by President Reagan EO Originally focused on machine tool industry; now focused on manufacturing technology 60+ members Manages consortial applied R&D projects Manufacturing Extension Partnership (MEP) Organized out of the National Institute of Standards and Technology $120 million annual budget; Centers in every State Customized consulting and network development for SMEs
33 December 13, 2010 Retrofit Strategy Meeting BRIM Development Opportunities
34 December 13, 2010 Retrofit Strategy Meeting Key Points There are many promising opportunities for investing in BRIM development – and a reasonable level of consensus on the priorities There is no “silver bullet” strategy available – it requires many investments in many facets of the market The investments need to be coordinated with each other to maximize learning and adaptive capacity Each area of investment is complex in its own right – managing the complexity across multiple domains is quite challenging, but not impossible Different players have different areas of expertise; it is important to differentiate and specialize In the absence of strong industry institutions, some kind of network structure will probably be needed to coordinate investments
35 December 13, 2010 Retrofit Strategy Meeting Some BRIM Development Opportunities (1) Market ProblemDevelopment Opportunity Knowledge of Customers Standard definitions of market segments Longitudinal consumer research on perceptions of the value proposition Effective Marketing Development of common messages and marketing strategies by segment Consistent branding of the value proposition for customers Policy Incentives Research on impact of specific policy incentives on customer behavior by segment Information Energy management tools Energy scoring platforms & building rating systems National utility data sharing agreements National energy use databases Standardized monitoring and verification protocols Asset Valuation Building industry comparables for EE buildings and changing appraisal methodology Financing Industry accepted underwriting standards Alternative financing business models Secondary market development Leveraging utility system benefit charges
36 December 13, 2010 Retrofit Strategy Meeting Some BRIM Development Opportunities (2) Market ProblemDevelopment Opportunity Attribute Market Access Standards for carbon credit & offset certification Standards on ownership of carbon credits Standards for inclusion in forward capacity markets Talent Supply Chain Occupational credentialing and certification systems Standardized education and training curricula Labor demand forecasting systems Contractor Quality Contractor certification systems Contractor development systems Contractor business tools Information Technology Enterprise Resource Planning (ERP) systems for integrated management of customer transactions Data and software interoperability standards Input Costs Material and components joint purchasing Building Technology Applied R&D in new building energy efficiency technologies
37 December 13, 2010 Retrofit Strategy Meeting One Way of Segmenting the “Opportunity Portfolio” Market Opportunity Type of Investment KnowledgeInnovationStandardsInstitutions Knowledge of Customers Marketing Policy Information Asset Valuation Financing Attribute Markets Talent SCM Contractors IT Inputs Technology
38 December 13, 2010 Retrofit Strategy Meeting Another Way of Looking At It… Market Opportunity Market Segment ResidentialMulti-familyC/IMUSH Knowledge of Customers Marketing Policy Information Asset Valuation Financing Attribute Markets Talent SCM Contractors IT Inputs Technology
39 December 13, 2010 Retrofit Strategy Meeting Envisioning a “Portfolio” Within One Area INFORMATION Market OpportunityMarket Segment ResidentialMulti-familyC/IMUSH Energy Scoring Systems Building Labeling National Utility Data Sharing Agreements National Energy Use Database Monitoring & Verification Protocols
40 December 13, 2010 Retrofit Strategy Meeting Anatomy of Each Portfolio Project What are the deliverables? Who manages the project? Who are the stakeholders that need to be engaged? What is the project plan? What is the budget? Who are the investors? How does it connect to other work? What is the scaling hypothesis?
41 December 13, 2010 Retrofit Strategy Meeting Potential Portfolio Project Example Energy Efficiency Comparables Network Project Manager CNT Energy Deliverables A system for establishing comparables for energy efficient homes in 8 markets Implemented appraisal methods that value home energy efficiency (“From PITI to PITIU”) Stakeholders Better Building sites; National Association of Realtors; local MLS boards and systems; appraisers; lenders Scaling Hypothesis Market adoption in 8 large markets will speed national adoption through MLS organizations Project Plan & Budget Define target areas; recruit retrofit and MLS partners Sign MOUs between retrofit partners and MLS organization ($60,000; 6 months) Develop and implement an MLS retrofit system with verification protocols ($360,000; 12 months) Implement compliance steps; build up database of comparables; agree on appraisal methodology changes ($600,000; 12 months) Investors TBD Links to Other Work USDOE Home Energy Score CNT My HomeEQ Conservation Services Group MLS project in NY
42 December 13, 2010 Retrofit Strategy Meeting Putting It All Together… Residential Multi-Family Small C/I Large C/I MUSH Market Building in Three Dimensions
43 December 13, 2010 Retrofit Strategy Meeting Examples of Current Market Development Investments
44 December 13, 2010 Retrofit Strategy Meeting A Very Incomplete Set of Examples of Market Development Investments Market Opportunity Market Segment ResidentialMulti-familyC/IMUSH Customers LBL Driving Demand Research Marketing Policy Information Residential Home Scoring System Commercial Bldg Rating System; EPA Portfolio Manager Asset Valuation EE Comparables Network Financing HUD Title I “Power Saver” Program DBA Foundation Multi Family Database Attribute Mkts Talent SCM Residential Retrofit Guidelines Contractors IT BPI Home Perf. XML Inputs Technology USDOE Building Energy Efficiency Hub; Energy Efficient Homes Partnerships
45 December 13, 2010 Retrofit Strategy Meeting National Residential Home Scoring System "The Home Energy Score will help make energy efficiency easy and accessible to America's families by providing them with straightforward and reliable information about their homes' energy performance and specific, cost-effective energy efficiency improvements that will save them money on their monthly energy bills.“ (USDOE Press Reslease) Part of the Recovery Through Retrofit Initiative Pilot process launched in fall, 2010 in 10 pilot communities and states covering all climate types Scoring system developed by Lawrence Berkeley Labs Scores a home on a range of 1-10, with 10 the most efficient home Scores are adjusted for climate zones Will be launched nationally in late 2011
46 December 13, 2010 Retrofit Strategy Meeting National Residential Retrofit Guidelines Key Content: Job Task Analyses Essential Knowledge, Skills and Abilities (KSAs) Technical Standards Reference Guide Standard Work Specifications Purposes: Lay the foundation for a worker certification & training program Increase workforce mobility up and across career ladders Help training providers develop course content and curricula Build consumer and investor confidence in work quality
47 December 13, 2010 Retrofit Strategy Meeting Building Energy Efficiency “Innovation Hub” One of three hubs – solar energy; advanced nuclear reactors; building energy efficiency technology Housed at Penn State University $122 million in funding Collaboration between USDOE; NIST; EDA and SBA The R&D program will incorporate a systematic analysis of the role of policy, markets and behavior in driving the adoption and use of energy technologies in buildings. “The mission of this Energy Innovation Hub is to research, develop and demonstrate highly efficient building components, systems, and models which are applicable to both retrofit and new construction.” Technology Focus Areas: Computer simulation and design tools Advanced combined heat and power (CHP) systems Building-integrated photovoltaic systems Advanced HVAC systems Sensor and control networks
48 December 13, 2010 Retrofit Strategy Meeting Energy Efficient Home Partnerships Partnership Grantees 1.Advanced Residential Integrated Energy Solutions (ARIES) 2.Alliance for Residential Building Innovation (ARBI) 3.Building America Retrofit Alliance (BARA) 4.Building America Partnership for Improved Residential Construction (BA-PIRC) 5.Building Energy Efficient Homes for America (BEEHA) 6.Building Industry Research Alliance (BIRA) 7.Building Science Corporation (BSC) 8.Consortium for Advanced Residential Buildings (CARB) 9.Habitat Cost Effective Energy Retrofit Program Team 10.Fraunhofer Center for Sustainable Energy Systems (CSE) 11.Integrated Building and Construction Solutions (IBACOS) 12.National Association of Home Builders (NAHB) Research Center Industry Partnership for High Performing Homes 13.National Energy Leadership Corps (NELC) 14.NorthernSTAR Energy Efficient Housing Research Partnership Team 15.Partnership for Advanced Residential Retrofit (PARR) “These partnerships will research and deploy new technologies and demonstration projects, and provide systems engineering, quality assurance, and outreach for retrofit projects throughout the country.” A total of $30 million in grants, ranging from $500K to $2.5 million 18 month grant agreements; $20 million per year will also be made available for the partnerships for three potential one-year extensions Focuses Building America on existing vs. new homes Partnerships will be paired with Better Building sites for applied R&D applications
49 December 13, 2010 Retrofit Strategy Meeting Deutsche Bank Americas Foundation Energy Efficiency Database Project Purpose: Create a database of100 New York City multifamily properties that will allow an evaluation of energy and cost savings due to the implementation of efficiency measures. Database will be used to inform bank underwriting standards. “If you approach a lender now with a plan to spend more to implement a green technology with the idea you will save on operating costs, they are skeptical and want to know what kind of proof you have. If you could be armed with an assortment of data, it would inevitably help you get financing and even increase your financing because your bottom line would go up.” (New York Times, 6.1.10)
50 December 13, 2010 Retrofit Strategy Meeting HUD Title I Power Savers Loan Guarantees Covers loans for up to $25,000 of home improvements 90% insurance coverage for lenders; maximum of 10% of portfolio Creates effective loan loss reserve fund of 9% for qualified lenders Two year pilot launching in 2011 Targeted at communities with retrofit initiatives; Better Building communities automatically eligible FHA is working with Ginnie Mae to develop secondary market options http://www.hud.gov/offices/hsg/sfh/title/presentation.pdf
51 December 13, 2010 Retrofit Strategy Meeting State Energy Efficiency Action Network SEE Action Network Goal: “To help the nation achieve all cost ‐ effective energy efficiency by 2020 through assisting state and local governments implement energy efficiency policies and programs.”
52 December 13, 2010 Retrofit Strategy Meeting BRIM Development Recommendations
53 December 13, 2010 Retrofit Strategy Meeting Recommended BRIM Development Action Steps 1.Agree on a framework for BRIM development investments and systematically catalogue current initiatives and investments (funders; feds; private). 2.Create a three-way partnership between USDOE, funders and market players to collaborate on market development investments. 3.Develop a network infrastructure to support collaboration and project execution on market investments over the long term. 4.Hold an annual BRIM Development conference.
54 December 13, 2010 Retrofit Strategy Meeting Potential Investment System Features Database of key market development investments projects, with project profiles – on-line; searchable; links to data sources; staff; etc. Investment advisors by content area: Assessment of current portfolio Advice on investment opportunities How to tie the investments together Periodic stakeholder meetings (2 X Year?) to review portfolio and generate new ideas (SVN/Investors Circle format?) Connect to track at annual BRIM development conference
55 December 13, 2010 Retrofit Strategy Meeting How It Might Work in One Niche Portfolio of National Projects Local Innovation & Implementation Investors Investor Advisors
57 December 13, 2010 Retrofit Strategy Meeting Summary of Key Points 1.USDOE is investing $20+ million in a national BRIM infrastructure 2.USDOE Technical Assistance Program (TAP) funding is temporary; most funding ends by CY 2012 3.The current TAP is heavily focused on managing transactions; design of a knowledge management system is not yet apparent 4.The process for quality control is not transparent
58 December 13, 2010 Retrofit Strategy Meeting Segmentation of TA Players
59 December 13, 2010 Retrofit Strategy Meeting Our Research Process 1.Develop database of potential providers (156) 2.Segment based on market taxonomy 3.Conduct secondary research (78) 4.Interview a representative sample (27) 5.Summarize key findings and research See attachment file with one-page profiles of organizations: “Building Retrofit Technical Assistance Provider Inventory” Sources: U.S. Department of Energy (DOE) Technical Assistance Provider (TAP) Network Innovation Network for Communities (INC) database DOE Energy Efficiency Partnership for Homes directory GuideStar, national database of tax- exempt entities Hoovers, national database of public traded companies Capital IQ, national database of public and private companies LexisNexis Public literature scan, using targeted key word searches
60 December 13, 2010 Retrofit Strategy Meeting Define market landscapeIdentify and segment players Develop profiles and market investment recommendations Framework for Segmenting TA Players Technical Assistance Service Areas: Retrofit Program Design Customer Marketing/ Demand Stimulation Workforce Training/ Preparation Contractor/ Auditor Training/ Preparation Building Energy Technology Products Retrofit Installation & Operations Building Testing/ Assessment/ Certification FinancingRetrofit Program Manage- ment Job Standards/ Targeted Hiring & Contracting PACEOtherRetrofit Program Perform- ance Evaluation/ Monitoring 12345678910111213 Building Type: ResidentialCommercial/IndustrialInstitutional Single-familyMulti-familyLess than 10k sq ftMore than 10k sq ft Churches Hospitals Municipal Schools Universities Organization Type: For-profitNot-for-profitGovernment Architecture/Engineering Firms Banks/Financial Institutions Contracting FIrms Energy Service Companies (ESCOS) Equipment & Building Supply Companies Management Consulting Firms Other 501 (c)(3)/Civic Organization Bank/Financial Institutions Industry Trade Associations Management Consulting Firms Universities Federal Government Agencies Public Private Partnership Public Private Partnership
61 December 13, 2010 Retrofit Strategy Meeting Secondary Analysis Segmentation Total 77 (100%) For Profit 25 (36%) Non-Profit 40(57%) Government 3 (4%) By Entity By Building Type By Technical Assistance Category Residential (multi family)84% Residential (single family)77% Commercial/industrial (more than 10k sq ft)63% Institutional63% Commercial/industrial (less than 10k sq ft)53% Not specified 1% Retrofit Program Design47% Financing41% Building Testing/Assessment/Certification39% Retrofit Program Performance Evaluation/Monitoring 34% Retrofit Program Management 30% Retrofit & Installation Operations 26% Contractor/Auditor Training/Preparation 24% Building Energy Technology Products 21% Customer Marketing/Demand Stimulation 21% Workforce Training/Preparation 10% Job Standards/Targeted Hiring & Contracting 7% PACE 4% Other 1% By Sub-Entity Management Consulting Firms 68% Energy Service Companies (ESCOS) 16% Architecture/Engineering Firms 8% Bank/Financial Institutions 5% Contracting FIrms 4% Other 4% Equipment & Building Supply Companies 0% 501 (c)(3)/Civic Organization 53% Industry Trade Associations 38% Universities 5% Federal government agencies 100% Public Private Partnerships 100% Building Type TA Service Areas Public/Private Partnership 2 (3%)
62 December 13, 2010 Retrofit Strategy Meeting Secondary Analysis Profile List Notes: * Represents DOE TAP Network Providers. 1.Affordable Comfort, Inc. 2.Alliance to Save Energy 3.American Council for an Energy-Efficient Economy* 4.Apprise Inc 5.Ballard Spahr* 6.Blue Springs Energy 7.Bright Power 8.Building America Retrofit Alliance 9.Build it Green 10.Building Performance Institute 11.Catalyst Financial Group, Inc*. 12.Center for Climate Strategies* 13.Center for Neighborhood Technology Energy 14.Change to Win 15.COWS (Center on Wisconsin Strategy) 16.Clean Economy Development Center 17.Clean Energy Advocates, Inc. 18.Clean Energy Solutions, Inc. 19.Clinton Climate Initiative 20.Conservation Services Group 21.Consortium for Advanced Residential Buildings 22.Consortium for Energy Efficiency 23.Economic Development Research Group 24.Efficiency Cities Network 25.Efficiency First 26.Emerald Cities Collaborative 27.Energy Efficiency Finance Corporation* 28.Energy Futures Group* 29.Energy Programs Consortium* 30.Energy Services Coalition* 31.Enterprise Green Communities 32.Environmental Finance Center* 33.EP Systems Group* 34.Fraunhofer Center for Sustainable Energy Systems 35.Green for All 36.Groom Energy 37.HarcourtBrown, LLC 38.ICF Incorporated* 39.ICLEI USA 40.Institute for Building Efficiency (Johnson Controls) 41.Institute for Market Transformation 42.Integrated Building and Construction Solutions 43.Honeywell 44.Laborers' International Union of North America 45.Lawrence Berkeley National Lab* 46.LI Green 47.Living Cities 48.Lockheed Martin* 49.Midwest Energy Efficiency Alliance* 50.National Association of State Energy Offices* 51.National Governors Association* 52.National Renewable Energy Laboratory 53.Natural Resource Defense Council** 54.Next Step Living Inc. 55.Northcross, Hill, & Ach* 56.Northeast Energy Efficiency Partnership* 57.Northwest Energy Efficiency Alliance* 58.Oak Ridge National Laboratory* 59.Partnership for Working Families 60.PSD Consulting (Performance Systems Development) 61.Pike Resarch 62.Policy Link 63.Public Technology Institute* 64.Recurve 65.Renewable Funding, LLC* 66.Sentech* 67.Shorebank Enterprise Cascadia 68.Southface 69.Southwest Energy Efficiency Project* 70.Stewards of Affordable Housing for the Future* 71.Strategic Energy Innovations 72.The Cadmus Group* 73.The DC Project 74.The Jordan Institute 75.University of Delaware Center for Energy & Environmental Policy* 76.Urban Sustainability Directors Network 77.US Green Buildings Council 78.Vermont Energy Investment Corp*
63 December 13, 2010 Retrofit Strategy Meeting Organization: Clean Energy Solutions, Inc. Year established: 2000 Staff size: 8 staff Website: www.cleanenergysol.com Expertise: EE Financing / Utility Efficiency Incentives Pgrm. Design / Energy Perf. Contracting / Energy Engineering / Renewable Energy Technologies / Emissions Credit Trading / Combined Heat & Power, and Utility / Distribution System Interface / Community Mkting. Strategies / Program Evaluation / Customer Energy Education Curricula Design TA service areas: Retrofit Program Design Financing Retrofit Program Management Retrofit Program Performance Evaluation/Monitoring Mission: To significantly reduce carbon footprints, electricity demand, and energy use across all residential and commercial/industrial sectors. Key relationships: Programs, services and products: Business planning New market development Complex program designs Financial engineering Mergers and acquisitions Distributed energy and utility initiatives Evaluation of proposals and business plans Contract negotiations Organization planning, job definitions, candidate evaluations Budget design and implementation Residential (single- family) Residential (multi- family) Commercial/ Industrial (less than 10k sq ft) Commercial/ Industrial (more than 10k sq ft)Institutional Not specified X XXXX Entity type Entity sub-type Geographic scope For profitManagement Consulting National PROFILE EXAMPLE
64 December 13, 2010 Retrofit Strategy Meeting Direct Interviews (27) PersonOrganization David Bank Civic Ventures Colin Bishop Clean Economy Development Center Dana Bourland Enterprise Community Partners Eric Bloom Pike Research John Bracey Southface Will Byrne DC Project Eric Coffman Affordable Comfort Steve Cowell Conservation Services Group Cisco Devries Renewable Funding Eric Dirnbach Change to Win Merrian Fuller Lawrence Berkeley Lab Karen Gajewski City of Philadelphia David Gershon Empowerment Institute Benjamin Goldstein USDOE Jeremy Hayes Green for All Ben Hecht Living Cities James Irwin Efficiency Cities Network Grace Kelly Southface Jeffrey King Clean Economy Development Center PersonOrganization Molly Lunn USDOE Amy Malik ICLEI Dennis Murphey Kansas City Julia Parzen Urban Sustainability Directors Network Joel Rogers COWS Chuck Schwarz Long Island Green Arah Shuur Clinton Climate Initiative Joel Simon CAEL
65 December 13, 2010 Retrofit Strategy Meeting Observations Providers evenly split between non-profit and for-profit (48% -- 52%) For profits are overwhelmingly management consulting companies (70%) Vast majority receive some funding from federal government agencies The focus and capacity varies widely across the field Top 5 TA service areas are roughly the same: retrofit program design; financing; performance evaluation; program management About 35% of the players have emerged since 2000 59% have fewer than 50 employees Most say they are national in scope, but based on capacity, many in practice are regionally focused
66 December 13, 2010 Retrofit Strategy Meeting Secondary Analysis Profile Summary Geographic Scope Year Established
68 December 13, 2010 Retrofit Strategy Meeting High Level Taxonomy of Players TypeExamples National integrated service providers. Conservation Services Group; Honeywell; ICF; Sentech; Vermont Energy Investment Corporation Regional integrated service providers. Center for Neighborhood Technology; Southface; Strategic Energy Innovations National players with a focused content area. Ballard Spahr; Partnership for Working Families; Renewable Funding Regional players with a focused content area. Environmental Finance Center Network (1 university per region – 10 total); Shorebank Enterprise Cascadia National membership organizations and networks. ACEEE, Emerald Cities; Energy Services Coalition; ICLEI; Urban Sustainability Directors Network Regional membership organizations and networks. Midwest Energy Efficiency Alliance; Northeast Energy Efficiency Partnership; Northwest Energy Efficiency Alliance; Southwest Energy Efficiency Project National industry/trade associations. Efficiency First; National Home Performance Council; Building Performance Institute; USGBC
69 December 13, 2010 Retrofit Strategy Meeting USDOE Technical Assistance Program (TAP)
70 December 13, 2010 Retrofit Strategy Meeting Better Buildings EECBG & TAP
72 December 13, 2010 Retrofit Strategy Meeting Technical Assistance Program (TAP) Overview $20+ million in funding over three years – focused on all 3,000+ EECBG recipients Three teams at USDOE: Headquarters Team State Energy Program (SEP) Team EECBG Team Technical Assistance Center Call Center On-line Customer Service Center Solutions Center Web Site Provider Network Four teams Prime contractors for each team Lead sub-primes 200 total providers
73 December 13, 2010 Retrofit Strategy Meeting TAC Organization: Provider Network Regional Coordinators NASEO ICF Regional Coordinators NASEO ICF Program Design and Implmtn. Vermont Energy Investment Corp. Program Design and Implmtn. Vermont Energy Investment Corp. Performance Contracting ICF Performance Contracting ICF Financial Mechanisms Cadmus CCS Financial Mechanisms Cadmus CCS DOE Labs NREL, ORNL, LBNL, PNNL DOE Labs NREL, ORNL, LBNL, PNNL SEP TeamEECBG Team ~50 providers~200 providers DOE HQ TA TEAM Michaela Martin, Lead ORNL 3 additional staff Michaela Martin, Lead ORNL 3 additional staff TBD, Lead 3 additional staff TBD, Lead 3 additional staff Provider Network Working Group TAP Structure Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
74 December 13, 2010 Retrofit Strategy Meeting Provider Network Resources State and Local Capacity Building Trainings Workshops Peer-to-peer matching Technical Renewable energy siting and development Review of technical specs for RFPs Strategic planning, energy management, and conservation strategies Green building technologies Building codes Program Design and Implementation Policy and program development Coordinating rate-payer funded dollars with ARRA projects and programs Sustainable community and building design State and regional EE and RE assessments and planning EE and RE portfolio program design elements Financial Program design support and guidance on financing mechanisms such as: Revolving loan funds (RLFs) Property-assessed clean energy (PACE) Loan loss reserves and enhanced credit mechanisms Performance Contracting Designing and implementing a performance contract Leveraging private investment Reducing institutional barriers Tracking and comparing programs Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
75 December 13, 2010 Retrofit Strategy Meeting TAP Providers DOE National Laboratories: National Renewable Energy Lab, Lawrence Berkeley National Laboratory, Oak Ridge National Laboratory Alliance to Save Energy American Council for an Energy-Efficient Economy American Public Power Association Ballard Spahr, LLP Boise State Environmental Finance Center Catalyst Financial Group Center for Climate Strategies, Inc. E. P. System Group Energy Efficiency Finance Corporation Energy Futures Group Energy Programs Consortium Energy Services Coalition Great Lakes Environmental Finance Center HarcourtBrown ICF International Midwest Energy Efficiency Alliance National Association of State Energy Officials National Association of Counties National Governors Association National Resources Defense Council New England Environmental Finance Center New Mexico Tech Environmental Finance Center Northcross, Hill & Ach Northeast Energy Efficiency Partnerships Northwest Energy Efficiency Alliance Public Technology Institute Renewable Funding Sentech, Inc. Southeast Energy Efficiency Alliance Southwest Energy Efficiency Project Stewards of Affordable Housing for the Future Syracuse Environmental Finance Center Tensleep Advisory The Cadmus Group, Inc. University of Delaware Center for Energy and Environmental Policy University of Louisville Environmental Finance Center University of Maryland Environmental Finance Center University of North Carolina Environmental Finance Center University of North Carolina School of Government Vermont Energy Investment Corporation Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010 Bold = included in our inventory
76 December 13, 2010 Retrofit Strategy Meeting Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
77 December 13, 2010 Retrofit Strategy Meeting TA Request Process Flow G R A N T E E Request Touch Points Grantees Project Officers (Acct Reps) Regional Coordinators TA Provider Network Recommendations Types of Resources One-on-One Solution Center Workshops Peer Matching NERVE CENTER T R I A G E B A S I C TA Assignment S T A N D A R D Specialized HQ EXCEPTION Feedback Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
78 December 13, 2010 Retrofit Strategy Meeting Better Building TAP Structure Collaborative Working Groups: Financing Contractor recruitment and workforce development Driving demand/marketing and outreach Data tracking and collection Infrastructure: Conference calls and webinars In-person meetings Collaborative working group directory On-line collaborative web site Sub-groups Affinity Groups: Commercial & Gov’t Buildings Multi-family and rental properties Historic buildings Green and healthy homes Deep retrofits New audit tools New finance tools New workforce standards Working with retail partners Infrastructure: Kick-off call or workshop Directory of interested grantees On-line collaborative web site Targeted sessions at BB workshops Active connecting to other federal agencies or initiatives Contractor Support and Access to TAP Resources
79 December 13, 2010 Retrofit Strategy Meeting Funding and Program Status Approximately half of the funds have been disbursed to date; the majority of the remainder will be spent by the end of CY 2011 USDOE is beginning to plan for the post-TAP TA structure It is unlikely that the EECBG will be refunded at a significant level Pre-EECBG TA funding was modest: $3 million through NREL $200K -- $500K through other sources
80 December 13, 2010 Retrofit Strategy Meeting TA Recommendations 1.Build on the base created by the USDOE TAP initiative. 2.Start now to plan for a post-ARRA TA infrastructure. 3.Make sure that structure has a “learning system” that rapidly disseminates knowledge across players and markets; and use this system to inform market development investments. 4.Develop robust feedback loops and a continuous improvement process.
81 December 13, 2010 Retrofit Strategy Meeting Collaboration Infrastructure
82 December 13, 2010 Retrofit Strategy Meeting Collaboration is At An Early Stage There is a broad range of players with interests in BRIM development – governments; utilities; NGOs; private enterprises; foundations; organized labor; education; etc. Because BRIM is at an early stage of development, the structures for strategic collaboration between players are not well developed. (Although there are some membership organizations that now represent significant cross sections of the industry.) As a result, there is not yet strong strategic alignment across key stakeholders on the strategies for development of the market. There are many different players doing many different innovative things without a “grand design” to maximize alignment with minimal structure.
83 December 13, 2010 Retrofit Strategy Meeting Three Promising Collaboration Opportunities 1.Formalize collaboration across funders through a Working Group structure. 2.Explore the best way to organize market stakeholders in ways that can align strategy for market development. (e.g. trade associations; coalitions; intermediaries; Federal Advisory Committees.) 3.Develop MOUs or other structures for collaboration between USDOE and both the Funders Working Group and market stakeholders.
84 December 13, 2010 Retrofit Strategy Meeting Collaboration on Market Development Funders Working Group USDOE & EPA Market Stakeholders
85 December 13, 2010 Retrofit Strategy Meeting Next Steps
86 December 13, 2010 Retrofit Strategy Meeting Some Practical Next Steps on BRIM Development 1.Identify which funders are interested in working on this issue in a structured way 2.Conduct the next level of inventory on market- building projects: List of projects by relevant categories Develop standard profile for each project Develop database format for sharing 3.Conduct a high level assessment of the strategy within each niche, using “investment advisors” where appropriate 4.Meet within 3 months to review results and plan next steps
87 December 13, 2010 Retrofit Strategy Meeting Some Practical Next Steps on TA Structure 1.Identify key players to provide input to USDOE post- ARRA TA planning 2.Develop a Funders Working Group assessment of current and planned foundation investments in TA capacity 3.Hold a meeting in the February time frame with DOE; funders; and key field networks on future TA infrastructure
88 December 13, 2010 Retrofit Strategy Meeting Some Practical Next Steps on Collaboration 1.Formalize a Funders BRIM Working Group: Members Mission Facilitation and analysis support Meeting schedule Priorities 2.Convene a meeting of key market stakeholders to explore how best to organize the field for collaborative interaction (after next level of market building investments has been completed) and to review priorities for BRIM development
89 December 13, 2010 Retrofit Strategy Meeting DISCUSSION
90 December 13, 2010 Retrofit Strategy Meeting Supplemental Materials
92 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on Market Building Serious Work Takes Decades. “If we are serious about building a real market, it will take us over a decade to do it. And much of the impact of our investment won’t show up for a long time. We need to be patient and we need to ratchet up the level of investment. You either believe we are building the post-carbon economy or not. And if you do, you have to be in it for the long haul.” Current Players Won’t Drive the Market. “The market doesn’t exist in the way that many organizations want it to exist. Many of the players involved now are not the ones that will actually drive the private market.” Lack of Focus on Market Development. “No one is really worrying about the building of market infrastructure and operating systems to support market development. We have to define the R&D investments we need to make to build this market. No one has done that yet.” The Market is At A Very Early Stage. “Everybody is talking about the retrofit market, but very few people are actually doing anything about it. The cities are all at an extremely early stage of development. This is really a “pre-nascent” field. Even the mature players are very early in their development. Unfortunately, much of the thinking is just an extension of the old subsidized weatherization program.” Market Failure. “It is folly to say that this market is developing the way it should. What we have on our hands is a fundamental market failure. There is no evidence that it is developing the way it should.” Need Focus on the Private Players. “Most of the TA is focused on these public and NGO players who happen to be holding the baton at the beginning of this market. Eventually they will have to pass it on to the private market players – entrepreneurs; banks; contractors; etc. Even while $500 million for Retrofit Ramp Ups seems like a lot of money, it is a drop in the bucket in terms of building a market and not enough to get private sector players to take a risk.” Not Enough Private Sector Engagement. The private players are largely absent from the dialogue about market building. The people doing the talking about it will not be the ones making the private risk investments.
93 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on Market Building Lack of Performance Data. “A major barrier is the lack of post-retrofit performance data. Particularly in the commercial industry where building owners are particularly concerned about the results. Without hard evidence that the energy savings are real, it will be hard to see a huge uptick in building retrofits.” Standardized Data. “We need standardized software and data management systems that allow for the standardization of retrofits. This will help standardize underwriting.” Access to Utility Data. “It is impossible for us to get utility data. We are all afraid of the local power company. We need some national agreement and standards on utility data sharing and integration with property tax data bases.” No Data to Drive Appraisals. “Green buildings aren’t appraised at a higher value because the datasets aren’t available for banks and appraisal institutions.” Data Standards. “We need datasets that demonstrate the success of retrofits – with pre and post data. And we need to track how this affects sale values. TA on the data side is critical. And we need some national data standards so these data sets are comparable.” Standardized Labeling. “To convey value and change underwriting standards, we need standardized building labeling that measures building energy efficiency – what everyone refers to as the ‘MPG’ for energy. It would be good if this was done nationally, but can also be done in local markets, as long as it is uniform.” No Link to Underwriting. “We believe the retrofit savings are real that they improve the value of our homes; but the capital markets don’t believe it, and the regulators don’t believe it. Underwriting standards have no way of recognizing the differences in energy performance of homes.” Universal Access to Utility Data. “We need consistent and updated maps of energy consumption by every parcel of property in the country. This would require utility data sharing protocols; and standardized database tools to integrate utility data with tax base data to get energy use per square foot.”
94 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on Market Building Large C/I Has Some Momentum. “Large corporations have large corporate campuses, big building portfolios that are better suited for payback on retrofit measures. Have more capital available for this work and helps boost public image. ESCO’s look for large buildings, so this part of the market may already have more momentum” Small C/I Opportunity. “There has been a lot of investment in the residential retrofit market, but almost none in the small-medium commercial market. And this is a niche with great opportunities for energy saving.” Small C/I Opportunity. “There appears to be a large opportunity/need for Light Commercial expertise and capacity (3,000-10,000 sf commercial buildings. These projects are too small for the large firms. We need to train the residential players to move up into this market. There are a lot of low/no cost high return strategies that can be implemented.” Consumer Communication. “We really need a more coordinated way of going after the consumer. They get a lot of individual product marketing making claims about performance that are not in line with what the building science community knows. We need to communicate the ‘whole house’ approach more effectively.” Marketing for Contractors. “We need marketing and communications resources for contractors. We train them in the technical skills, but then they don’t know how to go out and generate demand.” Generating Demand. “There is a huge gap in knowledge about how to generate demand for retrofits. We have very little information about what works and doesn’t work. We need market research; methods testing; consumer segmentation; focus groups; etc. to understand this market.” “Value Proposition is Not Compelling. “People don’t want the retrofit product in it current form. The value proposition is too abstract and service delivery is too fragmented. So traditional marketing is not enough.”
95 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on Market Building Three Primary Paths. “You need to enter this market from several different doors. And to me, the three primary ones are: 1) remove the upfront capital availability barrier; 2) have standardized systems that create consumer confidence in the transactions; and 3) create data that demonstrates value and brings private capital to the market.” “Standards vs. Open Competition. You have to be clear about where there is a need to develop some kind of “standard” for the industry and where you want to just let market competition drive the development of products and services. For instance, in terms of modeling software, that niche in the market is getting pretty well served by multiple vendors.” States are Also Major Independent Players. “Washington State Referendum 52 would dedicate $500 million to retrofit every school in the state with a 3:1 private capital match. If it happens, this will instantly be the largest retrofit market in the country. This is a big opportunity to do market infrastructure development.” Need DOE and EPA Alignment. “Also, we need to get DOE and EPA on the same page. They are entering the same market in an uncoordinated way.” Need DOE and EPA Alignment. “It would be really useful to know what is going on in EPA related to building energy efficiency. We just don’t have the bandwidth to build relationships with them.” Need for Standards in Several Areas. “Overall, the market needs standards in many areas – building performance metrics; best practices; definitions; etc. As an example, as we have moved into retro-commissioning, we have found that there is very little standardization of practices in that niche.”
96 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on TA USDOE Improving. “DOE, in particular, has improved. It is in different position now than it was 3 years ago. Previously, the DOE never had the resources to facilitate this kind of knowledge transfer. Now it has more resources, trying to be more aggressive in information sharing of R&D.” Different Motivations and Approaches. “There are a lot of different TA providers. Many are very good. Some suffer from tunnel vision. Each sells their own approach to developing programs and have a fair amount of difference in goals. They have very different motivations -- Climate change; Job creation; Social justice; Community building. There is a need for a consistent understanding of the goals and how different goals lead to different consulting and advice.” Need a Long-Term Strategy. “I think we have a lot of the TA pieces in place now. The problem is that this is all short term. This money won’t get re- appropriated. There are networks in place for some parts of this market that will survive the loss of funding (such as NASEO), but there is no real network to connect municipalities and cities together. The players in this space -- like ICLEI; Green for All; Emerald Cities; ISC – are only working with a small subset of the players. It would be great if we could use this opportunity of everyone having an excuse to be working together to do some creative thinking about a sustainable infrastructure after the funding disappears.” TAP Program Making Progress. “As one of the DOE TA providers, I believe the DOE TA program is basically a good concept and design that has had some “bumps in the road” in terms of its launch. Primarily related to coordination, since they combined several RFP respondents into a single award. The concept is a good one. They are continually tinkering with it. It suffered at the start from some disconnects but is improving.“ Need Long Term Strategy. “We don’t know how this will live on after ARRA funding ends. It has been really valuable for everyone to get to know each other and work together. I think we are building something – a community of practice – that will stay connected after the program ends.”
97 December 13, 2010 Retrofit Strategy Meeting Selected Interview Quotes on TA Lack of System for Coordination. “There is a need for a central location / hub for coordination. For example, a “clearinghouse” for all information related to the financing of retrofits. There needs to be better quality and consistency in the information being disseminated. TAP has a specific charter of quickly providing support for providers. What is lacking is a more comprehensive and robust center of information.” Connecting Local Learning. “There is innovation in the aspect of finance happening in many different places (e.g. Portland, Long Island). There is a need to aggregate these innovations and disseminate best practices.” Lack of Depth and an Integrated View. “A lot of people talk about doing some form of TA, but the vast majority of it, in our experience, is lacking in content depth. This is a new and rapidly changing field. There are very few people who have broad experience and can look at the market in a holistic way. Most people are very focused on a narrow content area.” Lack of Coordination. “In general, the intellectual resources exist, but they lack coordination. There are people doing great work, but how are others accessing this information and knowledge?” Overbuilding Capacity. “I am concerned that we are building a bunch of TA capacity for a market that does not yet exist. If the market doesn’t emerge, we will have a lot of “once bitten” folks who will never go back into the market. No one right does retrofits as a full time job. There isn’t enough volume.” Confusion About What Works. “There is rampant confusion in what works and what doesn’t work – at both the consumer level and the program level. We need one-stop shops that can provide trusted information to consumers. The same is true for program implementer who need some way to figure out what works and what doesn’t at their level.”
98 December 13, 2010 Retrofit Strategy Meeting October 21, 2010 Meeting of Better Building Grantees on Collaboration Opportunities
99 December 13, 2010 Retrofit Strategy Meeting October 21 Better Building Meeting Prompted by interest in collaboration across sites on system development 19 sites participated in a one-day meeting; detailed interviews done with each site in advance of the meeting Significant time spent sharing specifications on IT system RFPs Multiple opportunities for cross-site collaboration identified – well aligned with USDOE Better Building Affinity Groups and Collaborative Working Groups Some interest in post-meeting follow-up, but very limited responses Participants confirmed many of the priorities recommended here for market development
100 December 13, 2010 Retrofit Strategy Meeting Spectrum of Collaboration Opportunities Identified Type of Opportunity Description Information SharingSharing of detailed information that can inform peers decision making on program element development and program implementation. Examples include RFP text; lists of vendors; real time information on who is bidding on what. Peer Learning Networks Networks of peers who agree to engage in learning with each other (through on-line interaction; conference calls; or in-person meetings) on specific content issues. (Linked to USDOE Affinity Group process.) Product SharingMaking products developed or paid for by one implementer available for use by others. Joint Program Development Issuing joint RFPs for program element development (e.g. IT systems; marketing materials; etc.) Standards Development Recommending standards and practices for program elements that should be common across implementation sites.
101 December 13, 2010 Retrofit Strategy Meeting Common Content Area Concerns Information Technology Customer interface Contractor interface Financing data USDOE data requirements Program administration On-line energy audits & energy modeling Utility Data Marketing Market research Message & materials Outreach to customers Social media & websites Finance Management of/coordination with rebates & subsidies Developing new finance vehicles Loan Loss Reserve Funds Revolving Loan Programs Interest Rate Reduction Subordinate PACE Financial institution relationships Banks CDFIs Government Agencies ESCOs Underwriting standards Workforce Development Integration between workforce development training providers and contractors Skill and occupational classification definition Demand forecasting Workforce and training vendor management Program Management RFP content development RFP process QA/QC Measurement & reporting Stakeholder engagement Strategic partner management Energy Services Contractors Competence & performance standards Qualifications processes Job quality verification processes Contractor referral policy/process
102 December 13, 2010 Retrofit Strategy Meeting Opportunity Matrix Collaboration Opportunity Content Areas IT SystemsMarketingFinanceWorkforceProgram Implementation Energy Services Contractors Information Sharing Peer Learning Networks Product Sharing Joint Program Element Development Standards Development