1. 1 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Measure Selection Guidelines WEATHERIZATION ENERGY AUDITOR SINGLE FAMILY WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012

2. 2 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov By attending this session, participants will be able to: Describe selection criteria for weatherization measures. Identify Appendix A of the DOE WAP Rule 10 CFR, Part 440. Explain the concepts of present value and fuel escalation rate as they relate to SIR. Practice SIR calculations. Learning Objectives MEASURE SELECTION GUIDELINES

3. 3 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Appendix A SIR ≥ 1 o Based on DOE-approved audit o Present value of money o Fuel escalation rate Measure Selection Guidelines MEASURE SELECTION GUIDELINES

4. 4 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Can only install measures listed in Appendix A Materials must meet standards for conformance based on Appendix A Example: Appendix A Replacement Water HeatersStandards for Conformance Electric (resistance) water heaters10 CFR1 430 and UL3 174. Heat pump water heaters UL 1995, Second Edition, 1995. Electrical components to be listed by UL. And must have SIR ≥ 1. MEASURE SELECTION GUIDELINES

5. 5 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Energy consumption of existing item Energy consumption of replacement item Total cost of replacement: o Price and installation costs of new unit o Cost of removal and decommissioning of old unit Local utility rates Discount rate o Fuel escalation rate o Present value SIR Data Needs MEASURE SELECTION GUIDELINES

6. 6 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Annual escalation rate of fuel prices based on the annual energy price forecasts of the DOE Energy Information Administration. Fuel Escalation Rate MEASURE SELECTION GUIDELINES

7. 7 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov The interest rate at which expected future cash flows can be discounted. In WAP, includes fuel escalation rate. Like interest rate paid on a loan, in reverse. Saving $100 15 years from now is worth less than saving $100 today. The discount rate accounts for the time value of money. Discount Rate MEASURE SELECTION GUIDELINES

8. 8 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Alternately: Use DOE-approved audits with built in SIR Use spreadsheet PV function SIR Calculations MEASURE SELECTION GUIDELINES

9. 9 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov SIR equation = Where: % = DOE provided discount rate. n = Lifetime of measure, in years. Savings/year is based on local utility data. Cost = Total cost of installation. Using “PV” Function for SIR - PV (%, n, Savings/Year) ÷ Cost MEASURE SELECTION GUIDELINES

10. 10 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Appendix A SIR ≥ 1 Client acceptance If the client does not want certain measures installed, then you have two choices: 1.Continue with weatherization, minus the unwanted measures. 2.Defer weatherization services. Client Acceptance MEASURE SELECTION GUIDELINES

11. 11 | WEATHERIZATION ASSISTANCE PROGRAM STANDARDIZED CURRICULUM – December 2012eere.energy.gov Measure Selection Guidelines: Measures must be listed and conform to Appendix A standards. Measures must have an SIR ≥ 1 based on local costs and savings, with savings discounted to the present value of money. You cannot force a client to accept measures. The auditor has the right to defer services. Summary MEASURE SELECTION GUIDELINES