KEEA Energy Efficiency Conference 2010 Opening Plenary Stephen Cowell, CSG September 21, 2010

Home Energy Costs Drive Housing Affordability 2003 to 2008 Average Household Energy Costs : 3.5% of median income Average Household Energy Costs : 8.5% of median income Median Household Income: $60,000 Increase in Annual Energy Costs: $3,000

Transportation Energy Cost Household miles driven/yr: 40,000 Miles/gallon: 20 Gallons consumed: 2, price: $1.50/gallon price: $3.50 Increase in costs per household: $4,000/yr

The Result: Economic Meltdown American families saw a 15% drop in after-tax income This was the only substantial change to the economy $583 per month drop in disposable income Any homeowner on a tight budget was pushed over the edge

The Result: Housing crisis, then economic meltdown due to housing-based financial products

The Answer: Energy Efficiency DUH!

What Can Be Done?

Stepping Stones to Success Incentive funds to reduce up front costs Clear Standards for performing work Financing strategies to access capital Training and Quality Assurance: Front and back end to success Partnerships and alliances across the industry

Incentive Funds: Where and how State and Regional Policy -Utility Efficiency Programs -RGGI -Regional Energy Markets-FCM

Federal Policy: dollars and leadership ARRA - the report card -WAP -SEP -EECBG -Competitive EECBG Home Star National Standards - DOE Building labeling

Leadership Report card: MA-NY-OR-NJ

Adjusted for State Population

HOME STAR Triple Win Program Snapshot: Job Creation, Consumer Savings & Carbon Reductions HOME STAR $5 Billion SILVER STAR GOLD STAR Tax Incentives Financing / QA / Admin Cost: $5 Billion Homes: 3.3 Million Jobs: 168,000 Homeowner Saving (10 yr.): $9.4 Billion Equivalent Cars Off-Road: 615,000 Cars Power Generation Offline: 4 x 300MW Plants Cost: $5 Billion Homes: 3.3 Million Jobs: 168,000 Homeowner Saving (10 yr.): $9.4 Billion Equivalent Cars Off-Road: 615,000 Cars Power Generation Offline: 4 x 300MW Plants

Home Star: Status A priority legislative initiative for President Obama Small window of opportunity to achieve passage prior to October recess HSC pressing to secure support and votes for passage Senator Brown a key vote and HS co-sponsor

How Big an Impact? Home Star oil savings over measure lifetime will represent over 1 Billion gallons –(10X amount of oil spilled in Gulf) = Deepwater Horizon disaster = Oil saved via Home Star

Contributing to Energy Independence Gold Star residential retrofits of 7.7 million oil-heated homes = equivalent of 40 million barrels of oil per year –Equivalent to the entire Outer Continental Shelf oil production in Alaska and Pacific combined

ARRA Funding: Still drinking from the fire hose? Funding status Programs still just getting started Cycle through April 30, 2012 But what then?

Lessons Learned from ARRA Use of Davis Bacon, Buy American and NEEPA rules difficult to administer in residential retrofit Procurement chain from Federal-State- Local-Contractor is a slow process DOE needs staffing and focus to manage significant new role

Financing Keystone HELPS PACE - can it be saved Bank based programs Fannie Mae - $ million Secondary Market Funds On-utility bill repayment (OBR)

National Standards BPI: new standards and certifications RESNET: finding space and role DOE: National Standard setting process in place now Certifications and Accreditations Quality Control and Quality Assurance

The Future Ultimately it is about how to work today with an eye to institutional change that can lead to a sustainable strategy tomorrow

Thank you! Steve Cowell x