1. Residential Retrofit: At the Nexus of National Energy Policy
Stephen Cowell, CSG
June 18, 2010

2. Overview
20 years of state-by-state policy: Regulations and appropriations
National policy beginning with Obama Administration
Residential Energy Efficiency is the best jobs program:
- 92+ % of all products made in USA
- 100% of all jobs are local

3. 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

4. Active HOME STAR Coalition Broad support
Industry
Labor and Social Justice
Energy and Environmental Advocates
Over 1,500 organizations
Status of legislation:
Passed House of Representatives 5/6/10 (246 to 161)
Reintroduced in Senate & referred to Senate Finance Committee 5/27/10

5. HOME STAR $6 Billion* Cost: $6 Billion Homes: 3.3 Million
SILVER STAR
$3.6 Billion
GOLD STAR
$1.8 Billion
Financing / QA / Admin
$600 Million
*(Senate: 1B Tax Credit)
Cost: $6 Billion
Homes: Million
Jobs: ,000
Homeowner Saving (10 yr.): $9.4 Billion
Equivalent Cars Off-Road: ,000 Cars
Power Generation Offline: x 300MW Plants

6. Quality Assurance Provider
HOME STAR Program Actors
State
State Energy Office regulates QA providers network., local program coordination, infrastructure development. State designates HOME STAR Financing entity.
Federal Rebate System
Federal Database system that tracks jobs uploaded by Rebate Aggregators, notifies QA providers, and processes rebate requests.
Third party (non contractor) entities that conduct on-site quality assurance inspections, insure contractor eligibility. Entities delegated to RESNET or BPI QA providers, existing state residential efficiency program, or entity designated by the Secretary.
Quality Assurance Provider
Entity that aggregates job data and rebate forms, checks to ensure eligibility and accuracy, uploads to Federal Rebate System, then distributes payments to contractors. QA providers, Existing Residential Retrofit programs, and national companies are all eligible to be Rebate Aggregators as determined by the secretary. Companies that contract with homeowners can perform Rebate Aggregator role but not QA role.
Rebate Aggregator
Contractor
Company that enters into contracting agreement with homeowners. Silver Star Contractors eligible with License and insurance. Gold Star requires BPI Accreditation or other standards approved by the Secretary.

7. Legislative Design Objectives
Primary objective: move quickly to create jobs based on existing infrastructure
Establish program elements in legislation to avoid the need for extended rule making or procurement
Let the market work: Work through predefined organizations and networks
Insure both short-term job creation and long-term quality jobs through financing, standards, and enhanced infrastructure
Build a broad coalition that can support a bi-partisan solution

8. Integration of Home Star and Existing State Programs
Existing programs provide Rebate Aggregation + QA
Adjust existing programs to accommodate new Federal $
Use Home Star funds to the State to introduce or expand components: financing, QA, training
Challenge: Integrate multiple non-program Rebate Aggregators (Home Depot, etc)

9. MA 1- 4 family Residential Programs
Mass Save plus Cool Smart
Provides: incentives for a range of measures, audits, financing, equipment replacement, and training
Home Star impact
Use Federal $ as the base; layer on state dollars to keep program design but expand participation levels and type of measures
Federal $ fund expanded QA services
Freed up state funds:
Increase participation and infill/augment services; expand targeted initiatives outside Home Star such as multi-family; or community mobilization efforts
Must supplement and not supplant existing efforts

10. Integrated Policies Forward Capacity Market rules-Regional
State Energy Efficiency Resource Standards
State and/or Federal Building labeling
National Rebates and incentives combined with state regulatory policies
How to integrate multi-level action
Can we avoid being the policy “flavor of the day”

11. Challenges for Federal-State-Utility-Industry Roles
Multiple jurisdictional oversight
Define how authority and action is coordinated
Standards and certification
Role of industry standards or public standards
Competing interests driving action at each level
DOE role after decades of passive involvement

12. Thank you! Steve Cowell stephen.cowell@csgrp.com 508.836.9500 x13259