New Homes/ Manufactured Homes Work Group Northwest Energy Efficiency Alliance September 20,2017 New Homes/ Manufactured Homes Work Group Neil Grigsby Portfolio Program Manager Innovation to Action

Northwest Energy Efficiency Alliance Agenda 1. Next Step Home Scale Up Milestone 2. Next Step Home 2018 Operations Plan 3. Manufactured Homes 2018 Operations Plan Innovation to Action

Northwest Energy Efficiency Alliance Desired Outcomes Workgroup members are informed on the Scale Up Approval Milestone for Next Step Homes. Workgroup members review and provide feedback on the 2018 New Homes and Manufactured Homes Operations Plan Innovation to Action

Initiative Life Cycle Milestone: Next Step Home Scale-Up Q3 2017 Northwest Energy Efficiency Alliance Initiative Life Cycle Milestone: Next Step Home Scale-Up Q3 2017 Innovation to Action

Initiative Theory and Status on the S-curve The Next Step Homes program leverages the infrastructure created by the prior Efficient Homes initiative (Northwest ENERGY STAR Homes) to develop and increase market adoption of energy-efficient advanced building practices for single-family homes, aimed at influencing and accelerating code adoption over the next 3-4 code cycles.

Northwest Energy Efficiency Alliance Initiative Lifecycle We are HERE Innovation to Action

Northwest Energy Efficiency Alliance Scale Up Approval Reviews Market Test activities to move into Market Development. 1. Performance Based Programs 2. Home Certification Program Coordination 3. Training Development and Delivery 4. NSH Pilot Project 5. Marketing Innovation to Action

Market Test– Key Highlights Northwest Energy Efficiency Alliance Market Test– Key Highlights Completed Pilot homes; current analyzing performance data Transitioned NWESH to the market Maintain relationships with Raters/Verifiers RTF approved new homes standard modeling protocol Worked with BPA to offer a performance path program Launched BBNW Began efforts to establish relationships with home certification programs Successfully offered Home Efficiency Forum Established technical best practice to inform trainings Innovation to Action

Market Test Challenges Northwest Energy Efficiency Alliance Market Test Challenges Getting the region on board with the idea of a standard protocol for new homes: 2+ year effort Pilot Homes – working with market based projects Data Collection – 12+ months Additional infrastructure to support utility programs Innovation to Action

Market Test – Key Learnings Northwest Energy Efficiency Alliance Market Test – Key Learnings 1. Leverage existing market instead of just relying on utility programs 2. Rater accuracy and modeling in important 3. Align with Commercial Code Enhancement when possible 4. Builders can achieve above code performance in a variety of ways Innovation to Action

Market Development – Key Focus Northwest Energy Efficiency Alliance Market Development – Key Focus Leverage existing code collaboratives in each state to identify long term code targets and implement interventions that support the adoption of advanced measures. Innovation to Action

Market Development – Key Focus 2018 Northwest Energy Efficiency Alliance Market Development – Key Focus 2018 Aligning with Commercial Code Enhancement Code Market Assessment (State Action Plan) Utility Programs Performance Path adoption Market Support Rater infrastructure Home certification program coordination Innovation to Action

Northwest Energy Efficiency Alliance Scale Up Timeline Internal Meeting: 9/25 RAC: 9/12 RPAC: 10/8 Innovation to Action

Northwest Energy Efficiency Alliance Questions? Innovation to Action

2018 Operations Plan Next Step Homes Northwest Energy Efficiency Alliance 2018 Operations Plan Next Step Homes Innovation to Action

Northwest Energy Efficiency Alliance Key Market Drivers Utility incentive programs (performance path) Code Development Process Home Certification Programs Innovation to Action

Northwest Energy Efficiency Alliance 2017 Accomplishments Launched single-family performance path utility program Successfully transitioned NWESH to the market and introduced BetterBuiltNW as NEEA’s new upstream facing brand Began counting energy savings from all home certification programs in the NW Innovation to Action

Northwest Energy Efficiency Alliance 2018 Goals Identify long term state specific energy code targets Utilities support builders to offset cost of adding energy efficient features Increased coordination between home certification programs in the NW Raise awareness for energy-efficiency in new homes Innovation to Action

Northwest Energy Efficiency Alliance 2018 Activities New coordination between cities, Utilities and home certification programs LMS training development Participation in WA code development process Collaboration with Commercial Code Enhancement to develop State Action Plans with each State. Innovation to Action

Northwest Energy Efficiency Alliance Questions? Innovation to Action

Northwest Energy Efficiency Alliance Risks Risk(s) Mitigation(s) Builders do not participate in utility incentive programs   Provide builder/Rater support to increase awareness of utility incentives and overcome challenges to participation Residential new construction slows Show builders the value of participating in a home certification program Code adoption slows Facilitate code collaborative meetings in each state to create long term code roadmaps that voluntary programs can support Innovation to Action

Manufactured Homes NEEM 2.0 Northwest Energy Efficiency Alliance Manufactured Homes NEEM 2.0 Innovation to Action

Initiative Theory and Status on the S-curve Introduce a new voluntary specification above the current NEEM 1.1 specification to prepare the market for a higher energy efficiency standard and increase energy savings opportunity for the region, prior to the next HUD code change.

Northwest Energy Efficiency Alliance Initiative Lifecycle We are HERE Innovation to Action

Northwest Energy Efficiency Alliance Key Market Drivers Utility incentive programs NEEM 1.1 success Manufacturer Engagement HUD code? Innovation to Action

Northwest Energy Efficiency Alliance 2017 Accomplishments RTF approval of NEEM 2.0 Four NEEM 2.0 demonstration homes with manufacturers Market Research completed on homebuyers Utility/NEEA alignment on support for NEEM 2.0 Innovation to Action

Northwest Energy Efficiency Alliance 2018 Goals Establish NEEM 2.0 in the market Utilities offer NEEM 2.0 incentives Retailers have the resources to sell NEEM 2.0 to homebuyers Innovation to Action

Northwest Energy Efficiency Alliance 2018 Activities Offer upstream incentives and technical support for manufacturers building NEEM 2.0 Utility outreach and support to plan NEEM 2.0 incentive programs Provide retailer sales tools and resources to sell NEEM 2.0 Innovation to Action

Northwest Energy Efficiency Alliance Risks Risk(s) Mitigation(s) Manufacturers do not participate in NEEM 2.0   Increase upstream incentive Retailers do not sell NEEM 2.0 Develop marketing materials to help communicate the value proposition of energy efficiency Consider offering a Retailer incentive for NEEM 2.0 sales Consumers do not buy NEEM 2.0 Develop marketing materials that communicate the value proposition of energy efficiency Increase awareness of utility homebuyer incentives Innovation to Action

Feedback, Questions, Discussion Northwest Energy Efficiency Alliance Feedback, Questions, Discussion Innovation to Action

Northwest Energy Efficiency Alliance Neil Grigsby ngrigsby@neea.org September 20, 2017 Thank you! Neil Grigsby ngrigsby@neea.org Innovation to Action