Home Star Update

Toward the Finish Line in the Senate

Larry ZarkerBPI

Construction Industry EmploymentConstruction

• 24.7% unemployment in construction industry (from 18.7% in October)• 38% drop in employment since 2006

Manufacturing• 24.5 % drop in construction

related manufacturing• Construction-related

manufacturing at less than 62% of capacity

Construction Retail• 14% drop in employment

since 2006

Aug-07

Nov-07

Feb-08

May-08

Aug-08

Nov-08

Feb-09

May-09

Aug-09

Nov-09

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

US UnemployementUS Construction Unemployment

HOME STAR Program

HOME STAR $6 Billion

• SILVER STAR– $3.6 Billion

• GOLD STAR– $1.8 Billion

• Financing / QA / Admin– $600 Million

Cost: $6 BillionHomes: 3.3 MillionJobs: 168,000Homeowner Saving (10 yr.): $9.4 BillionEquivalent Cars Off-Road: 615,000 CarsPower Generation Offline: 4 x 300MW Plants

Built upon the solid policy foundation of delivering real jobs through the private sector to accomplish

public imperatives,

Home Star is the most important piece of legislation for residential energy

efficiency ever.

Policy Objectives Rapid Deployment

Leverage existing systems and infrastructure Avoid the need for rule making or procurement

Market-Based Match public dollars with homeowner investment Empower existing business and organizations

Pathway to Performance Short-term job creation Long-term transformation

Broad Support Retail, Manufacturing, Contracting, Labor, and Environmental groups A win for the Environment, Economy and American Workers.

SILVER STAR - Eligible Measures

$1,000 Per Measure

Up to 50%

Cap $3,000

Rebate delivered to customer at time of purchase, but paid to installer post completion of job and quality assurance:

o Whole House Air Sealing o Duct Seal / Replaceo Attic Insulation w Sealing o Wall Insulationo Domestic Hot Water o Floor Insulationo Heating Equipment o Cooling Equipmento Windows and Doors

.

1. Energy Assessment

2. Retrofit Fundamentals• Weatherization• Insulation

Major systems• Heating / Cooling• Water Heating

Renewables• Solar

Contractor Accreditation• BPI or equivalent

3. Quality Assurance

• $3,000 incentive for a 20% savings• $1,000 for each additional 5% savings• Not to exceed 50% of project cost or $8,000

Quality Assurance Provider

Rebate Aggregator

State Quality Assurance

System

Federal Rebate System

Contractor

• State system that regulates QA providers network in state.

• 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 can be State offices or can be delegated to private contractors (most common).

• Entity that aggregates job data and rebate forms, checks to ensure eligibility and accuracy, uploads to Federal Rebate System, then distributes payments. QA providers, State energy offices, and national companies are all eligible to be Rebate Aggregators as determined by the secretary. National Contractors can perform Aggregator role but not QA role

• Entity that enters into contracting agreement with homeowners. Rebate amount is fronted at time of purchase and floated by this entity until completion and processing.

HOME STAR Program Actors

Senator Reid on Home Star’s ChancesPOLITICO's Morning Energy (9/8/10)By Josh VoorheesTHE EVER-SHRINKING ENERGY AGENDA -After failing to pass a sweeping energy and climate package earlier this year, Senate Democrats are again considering taking the knife to their wish list in a bid to move whatever they can from their now-fractured agenda. “We can't get everything done at once,” Majority Leader Harry Reid conceded last night at his Las Vegas clean energy forum. “We're going to have to start looking at some piecemeal legislation. FIRST UP? - Reid suggested that one of the first pieces of energy legislation that he may try to move would be a two-pronged package of natural gas vehicle legislation and the Home Star retrofit program. “Once we get the election out of the way, I think we can do that. And even before the election I think we should take a run at it… Even Washington is ready for that, so I'm going to try.”

Home Star in the Senate:

Clean Energy Jobs and Oil Company Accountability Act of 2010

Energy Bill Has Six Divisions:A. Oil Spill Response and Accountability.B. Reducing Oil Consumption and Improving

Energy Security.C. Clean Energy Jobs and Consumer Savings.D. Protecting the Environment.E. Fiscal Responsibility.F. Miscellaneous.

Senator Reid on Home Star’s ChancesPOLITICO's Morning Energy (9/8/10)By Josh VoorheesTHE EVER-SHRINKING ENERGY AGENDA -After failing to pass a sweeping energy and climate package earlier this year, Senate Democrats are again considering taking the knife to their wish list in a bid to move whatever they can from their now-fractured agenda. “We can't get everything done at once,” Majority Leader Harry Reid conceded last night at his Las Vegas clean energy forum. “We're going to have to start looking at some piecemeal legislation. FIRST UP? - Reid suggested that one of the first pieces of energy legislation that he may try to move would be a two-pronged package of natural gas vehicle legislation and the Home Star retrofit program. “Once we get the election out of the way, I think we can do that. And even before the election I think we should take a run at it… Even Washington is ready for that, so I'm going to try.”

Gold Star Accreditation RequirementsIN GENERAL. A contractor may perform retrofit work under the Gold Star Home Retrofit Program only if the contractor—(A) meets the requirements for qualified contractors under subsection (a);(B) is accredited (i) by the BPI; or (ii) under other standards that the Secretary shall approve not later than 30 days after the date of submission, in consultation with the Administrator, under an equivalent accreditation approved by the Secretary under which the contractor, at a minimum…..

Equivalent Accreditation Criteria(I) educates the consumer on the value of comprehensive energy retrofit work; (II) meets whole house contracting standards in conducting home performance work relating to home energy auditing, health and safety testing, heating, air-conditioning, and heat pumps;(III) employs sufficient levels of staff who are certified to the standards covering the appropriate whole house energy audits and retrofit upgrades;(IV) maintains calibrated diagnostic equipment for use in conducting energy retrofitting, assessment, and health and safety testing on the house;(V) records and maintains all project information for review during the quality assurance inspection;(VI) maintains quality assurance records of internal reviews of the operation and performance of the business;(VII) adopts a customer dispute resolution policy that establishes a specific time line in resolving any disputes with the consumer; and(VIII) meets such other standards as are required by the Secretary.

Key Differences House bill provides rebates to consumers Senate bill provides rebates to contractors House bill does not include financing section;

Senate bill does. Senate bill includes WaterSense features Senate bill did include tax credits in S3434 but that

is omitted in the Energy Bill.

Key Issues “Pay For” Finding 60 votes – Tenuous Bi-Partisan Support Recess Looming Fall elections Lame Duck Session New Congress Scope of the Energy Bill

Reduce Energy Bills at Home Act

Sponsored by Senators Snowe and Bingaman Extends 25C for an additional two years and

raises cap to $3,000 from $1,500 Raises caps on certain high efficiency equipment

up to the full $3,000 Requires that DOE provide recommendations on

future eligibility for federal tax credits

Advanced Energy Tax Incentives Act of 2010 Introduced last week by Senators Snowe (R-ME)

and Bingaman (D-NM) Broad range of tax credit incentives for efficiency

in buildings, industry, vehicles, and manufacturing Sec. 101 – Extends New Home Tax Credits Sec. 104 – Credit for H.P. Auditor Certifications Sec. 105 – Credits for H.P. Home Improvements

Key Provisions of Sec. 105 (25E)

Home Performance Audit Requirements Up to $8,000 in Tax Credits for Eligible Home

Performance Improvements Base Incentive of $3,000 for Homes Built Before

1940 and $2,000 for Homes Built After That Work Must be Performed by a Contractor

Accredited by BPI

Capitol Circle Membership in Efficiency First Manufacturers’ Council Policy Advice on Trade Association Direction Regular Access to Leadership of Trade Association Monthly legislative conference calls with the

Efficiency First lobbyist and board members to discuss strategies and set priorities.

Key logo placement on web site.

Join the center of the industry.

It’s all here at ACI.www.affordablecomfort.org

Regional ConferencesColorado ENERGY STAR SummitDecember 8 - 9, 2010Denver, Colorado

ACI California Conference 2011January 10 – 11, 2011Los Angeles, California

ACI Northwest Conference 2011February 1 – 2, 2011Portland, Oregon

National ConferenceACI National Home Performance ConferenceMarch 28 – April 1, 2011San Francisco, California