green jobs/green new york: increasing opportunities for home energy efficiency upgrades

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Green Jobs/Green New York: Increasing Opportunities for Home Energy Efficiency Upgrades. Anthony Ng Green & Equitable Economies Strategist Center for Working Families October 1, 2013 NYS CDFI Conference. Workshop Goals. L earn about Green Jobs/Green New York - PowerPoint PPT Presentation


On-bill recovery pilot loan program

Green Jobs/Green New York: Increasing Opportunities for Home Energy Efficiency UpgradesAnthony NgGreen & Equitable Economies StrategistCenter for Working FamiliesOctober 1, 2013NYS CDFI Conference

1Workshop GoalsLearn about Green Jobs/Green New York

Learn how Craft3, an Oregon and Washington based CDFI is offering energy efficiency loans

Get your feedback on a proposal for an energy efficiency loan pilot program, that would involve a partnership between credit unions/CDFIs and the NYS Energy Research & Development Authority (NYSERDA)2Green Jobs/Green New York (GJGNY)PRIMARY GOALS

Conserve on energy useSave money for low-to-moderate income homeownersCreate good jobsReduce carbon emissions

CWF formed in 2006, by the same family of organizations as the WFP.

Think and do policy think tank.

Develop progressive policies that benefit working families in NYS. Work with the WFO, a statewide group that has access to political power. Its how we get good progressive policies enacted.

GJGNY started with one sentence from Joel Rogers of COWS. He suggested that we look at statewide policy of housing retrofits as a way to create jobs, save energy, save money and better the environment.

Some of the common measures in a home energy retrofit include air sealing; adding insulation; installing more efficient boiler, furnace, air conditioner, water heater, lighting, or appliances; smart thermostats.

Joels suggestion made sense. It was innovative; big picture; game changing; and met the mission of our organization to develop policies to benefit working families.

Took that idea to the Governors office. Judith Enck.

Then we developed the idea. Convened meetings and workgroups across NYS Buffalo, NYC, North Country, Albany, etc

150 community, labor, environmental, contractor groups met to develop the policy blueprint

Developed the policy blueprint 130 pages. Simultaneously, we were developing state legislation.

Governor Paterson Signs GJGNY into Law

Legislation passed in 2009.

Seeded with $112 million of Regional Greenhouse Gas Initiative (RGGI) funds. Administered by NYSERDA.

Went back to the legislature and passed on-bill recovery in 2011

GJGNY: Removing Barriers to RetrofitsFree/low-cost energy assessmentsLow-interest financing and incentivesOn-bill recovery (OBR)18 community-based organizations (CBO) conduct program outreach, assist homeowners with financing and retrofit process; several also do workforce recruitment. Building Performance Institute (BPI) accredited contractors NYSERDA must approve project work scopesQuality control: 10 to 15 percent of projects are inspected afterwards5Green Jobs/Green NY CBOs

GJGNY CBOs key to achieving two of programs primary goals: saving money for low-to-moderate income homeowners; creating good jobs.

NYSERDA released an RFP in June to keep the CBO role going. Another $4.5M over 2 years. Awards should be announced by mid-October.6Positive Community ImpactHouseholds completing a retrofit through GJGNY like the programMost important reasons for completing a retrofit: save money and improve the homeFree/low cost audit, incentives, and low-interest loans very important in decision to do a retrofit Nearly 46% of contractors surveyed have hired workers since GJGNY beganCreating community benefits leveraging CBO community outreach to generate better paying jobs and price discounts for customers

Some findings from NYSERDAs evaluation of the first 18 months of the program, released in October 2012.

Households like the program -- Over three quarters (78%) of audit-completed respondents and the vast majority (96%) of work-completed respondents were either satisfied or very satisfied with the program. 97% of work-completed customers liked their contractors.

51% of respondents said the most important factor in deciding whether or not to install measures was the money saved.

Importance and use of financing and incentives. Around four-fifths of GJGNY program participants thought GJGNY free or reduced- cost energy audit (79%), incentives (80%), and financing (71%) were highly important in their decisions to install HPwES-eligible energy-efficiency measures.

85% of respondents said they were satisfied or very satisfied with the energy efficiency measures installed. Households were asked why they participated in the program and the primary answers were it saves money and improves the home (e.g. keep it warmer in the winter). NMR Group, p. 6-30.

NMR Group, Inc., Process Evaluation and Market Characterization and Assessment: Green Jobs Green New York Residential Program: Final Report, Project Number 9835 [Process Evaluation], NYSERDA, September 2012, (NMR Group), p. 6-25-6-26.

We lost the fight for program wide standards. So we got aggregation. We remain committed to program wide standards in the long term.

Community benefits in first two aggregation models include:Price discounts for customersBetter wage and benefits $24 per hour on Long Island; $17 per hour in Buffalo.Continued training for career advancementLocal hiringMinority and women owned business enterprises

NYS DOL requires submission of payroll records data by employers.

OJT subsidy Pays for up to 50% of employees wages for first 6 months, capped at $15,000 per employee; $150,000 per business. Can get additional funding on top of these caps for training -- $4,000 off-site, per employee. $2.78 million program initial RGGI funds leveraged SBC funds.

Jobs impact study will look at retrofit jobs but broader too; green supply chain

7Green Jobs/Green New YorkProgress to Date For 1-4 family homes (as of 8/31/2013)40,280 energy assessments completed (87.5% of goal)10,730 projects completed (71.5% of goal) $37.3 million issued in energy efficiency loansSigns of market transformationDeveloping future statewide energy efficiency policy

Tracy & Wendy Persons. Binghamton, NY homeowners

Pre-GJGNY: HPwES program began in late 90s

Audit goal 46,000; Retrofit goal, 15,000

$37.3M in loans issued. About $5M in principal and interest has been repaid

Signs of market transformation:

Connecting more low-to-moderate income customers, immigrant communities, and regions of New York State that had few NYSERDA retrofits beforehandFree/low cost energy assessment removing initial barriers to retrofitsMore low-to-moderate income customers getting financing More low-to-moderate income customers accessing incentives to help them pay for retrofits CBOs helping customers and contractors work better together to complete retrofits. Pre-qualifying customers, managing expectations. Their share of retrofits growing monthly.

One of, if not the largest energy efficiency program to use RGGI funding in New York State. Of $301 million in RGGI funds that NYS receives, $112 million goes to GJGNY. Shows other states that they can use RGGI funding in the same way and scale. MA doing this too.

Better align GJNGY with other state energy efficiency, weatherization, and home improvement Braid funding together to allow CBOs to outreach for several state EE programs: EmPower, AHP, GJGNY, WAP, AHC HIP?

8Energy Expenses and SavingsAverage annual energy expenses per household in NYSAverage annual energy savings for a retrofitted home$1724Capital Region/Saratoga: $755Central New York: $571Finger Lakes: $533Long Island: $870Mid-Hudson/Westchester: $802New York City: $885Southern Tier: $924Western New York: $588

This is from a NYSERDA survey in 2011.9Many Buildings Can Still Become Energy EfficientCarbon War Room: Market potential of energy efficiency is $87 billion per yearCeres: $280 billion investment opportunity that can save building owners $1 trillion over a decadeNYC: 75% of carbon emissions comes from its buildings. 80 % of our buildings will still exist in 2050.This is a lot economic activity that can create and support businesses and jobs

Carbon War Room one of the founders is Richard Branson, head of the Virgin Group and Virgin Airlines

Ceres a network of business leaders that work on climate change and water scarcity.10How Do I Pay for It? GJGNY Financing OptionsSmart Energy Loan (3.99%; 3.49% for borrowers that repay with automatic payment)On-Bill Recovery (OBR) Loan (3.49%)For each loan, two sets of underwriting standards:Tier 1 Standard approval process Tier 2 Alternate approval process that incorporates utility bill repayment history Loan amount: up to $13,000; goes up to $25,000 if the payback period is under 15 years5, 10, or 15 year loan terms; term cant exceed expected useful life of energy efficiency measuresSubsidies also available for homeowners above and below 80% of area median income.


HEMI 10% of project costs up to a max of $3,000. Pre-approved measures qualify for it.AHP 50% of project costs up to a max of $5,000 for single family homes; up to $10,000 for 2-4 family homes11Current GJGNY Underwriting CriteriaCriteriaTier 1Tier 2Minimum credit score or alternative640. 680 if self-employed for 2 years+; 720 if self-employed $2,500No outstanding collections, judgments, or tax liens > $2,50013Administration of Current Green Jobs/Green New York RLFRLF capitalized with $51M in Regional Greenhouse Gas Initiative (RGGI) funds. $26M for 1-4 family homes. Energy Finance Solutions (EFS) originates the loans on behalf on NYSERDA For on-bill recovery, the utilities collect the on-bill payments and remit to NYSERDA, which replenishes the RLF$24.3M bond issuance just completed to also replenish RLF

14Benefits of On-Bill Recovery Re-pay retrofit costs on utility bill one bill to pay, not two. Charge is placed on utility bi