Energy Upgrade California EE programFebruary 2010

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Energy Upgrade California

• Retrofitting—or remodeling an existing home is an ideal way to save energy money and the environment.

• Joint program with SCE and SCG shared territory

• Through the program, customers and contractors are encouraged to approach the house as a collective savings opportunity rather than a group of individual systems

• The program provides solutions to overcome participation barriers with incentives, education/awareness and contractor training

• One statewide brand will minimize market confusion and build a synergistic communications platform

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Long-Term Statewide Goals

Contribute to California Public Utility Commission’s statewide goal to retrofit 130,000 housing units, representing 1% of the state’s total housing stock to reduce energy usage

Support greenhouse gas emissions reduction to 1990 levels by 2020, and 80% below 1990 levels by 2050 (California Air Resources Board)

Create a market shift to whole house performance

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The IOUs Program has the following goals during the 2010-2012 program cycle:

• 10,320 treated homes for Basic Package

• 1,500 treated homes for Advanced Package

SCE and SCG Program Goals

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Why Participate in the Energy Upgrade California program?

Making energy-efficient upgrades to your home

does a lot of benefits to you, the environment, and even your community:

Cost effective upgrades like insulation, caulking, and duct sealing can reduce energy waste in most homes, and over time the energy savings-and the incentives you’ll receive can offset the cost of the work

Retrofitting homes also will reduce our carbon footprint. Home energy accounts for 21 percent of U.S. carbon emissions – twice as much as passenger cars

Upgrades are conducted by local, certified contractors, a workforce that has been particularly hard hit by the recession

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Customer’s Perspective

• A single, comprehensive program offering – a clear line of sight between Basic and Advanced

• Coordinated messages from SCG, SDG&E, SCE & PG&E, andlocal governments

• California’s Energy Efficiency Loading order (established by CEC):1. Air Sealing2. Insulation3. Proper sizing of heating and cooling system4. Proper sizing of hot water system5. Efficient lighting, appliances, and demand response 6. Renewable

• Benefits in the form of:• Increased comfort• Energy savings

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Program Participation Options

To expand the program reach, there are two entry paths for customers to participate:

Basic (statewide)

Advanced(local utility)

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Offers customers an easy entry point on the path to a more

energy-efficient home

Basic Package Participation

Focus on Single family owned detached homes

Scope of work focused on the building shell

NO diagnostic audit required for Basic Package

Platform toward the Advanced Package participation

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Basic Package Measures

Incentive of

$1,000

Air Sealing

Attic Insulation

Duct Sealing

Insulation of Domestic Hot Water

Combustion Safety

Low Flow Showerhead with/or Thermostatic Valve

Control

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Qualifications for the Basic Package Retrofits

• Customers must be serviced by SCE and SCG

• Customers must have an existing HVAC system

MEASURE Does existing house qualify?* Post-retrofit Target

Attic Insulation upgrade to qualify: must start at R-11 or worseattic insulation to R-30 or better

per local jurisdiction

Duct leakage improvementto qualify: hasn't already particpated in duct test and seal

program and hasn't had ducts sealed within past 5 years

final leakage rate cannot exceed

15% of airflow based on 400

CFM per ton

Air Sealingto qualify: hasn't already had air sealing in home within past 5

years to 0.35ACHn

air sealing to 0.35 ACHn or

better (see detailed

requirements in Contractor

Handbook for sealing to better

than 0.35 ACHn)

Insulation of domestic hot water pipes

wrap 5 feet of accessible pipe

extending from hot water

heater, using rigid foam pipe

insulation

Low flow shower head with Thermostatic-

Activated Flow Restriction Valve or

Thermostatic-Activated Flow Restriction

Valve Device

install shower heads to low-

flow shower head with

thermostatic-activated flow

restriction valve or thermostatic-

activated flow restriction valve

device

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Comprehensive

home energy-efficiency measures

Advanced Package Participation

Focus on single family owned detached homes

Requires diagnostic audit

Comprehensive Assessment – Test-In / Test-Out

Comprehensive scope of work

Envelope measures + system upgrades

Must achieve a minimum 10% annual energy savings

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Proposed Advanced Measures

*10%+ annual energy reduction

Duct Sealing

Air Sealing

Attic Insulation

Advance Path must meet a minimum of *10% energy reduction based

on the modeling software simulation

1 or more of the following measures:

• Wall Insulation

• Proper sizing of heating and cooling system

• Proper sizing of hot water system

• Hardwired interior and exterior fixtures

• Windows, cool roofs, and radiant barrier

Low Flow Showerhead with/or Thermostatic

Valve Control

Insulation of Domestic Hot

Water

Incentive

From $1250

to $4000

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Advanced Package Incentives Structure

Energy Savings Incentives

10% -14% Energy Reduction $ 1,250.00

15% - 19% Energy Reduction $ 1,500.00

20% - 24% Energy Reduction $ 2,000.00

25% - 29% Energy Reduction $ 2,500.00

30% - 34% Energy Reduction $ 3,000.00

35% - 39% Energy Reduction $ 3,500.00

40% + Energy Reduction $ 4,000.00

*Customers in LA County are also eligible for an additional $500 rebate when they

achieve 20% energy reduction or greater

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Customers Participation Flow

• Customer hears about the Program through IOUs or local governments marketing efforts

• Customer contacts a participating contractors

• Customer and contractor submits an Incentive Reservation form

• Customer receives a Notice to Proceed letter from SCE & SCG

• Participating contractor installs energy efficiency measures as agreed on work scope or contract between the customer and participating contractor

• Customer and contractor submits an Incentive Application form

• Customer has the option to sign the incentives off to contractor or to receive the incentives themselves

• Customer receive the incentive check from SCE & SCG

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Customers Payment Options

1. Pay contractor directly

2. Secure financing (bank, refinance, home equity line of credit)

3. Unsecured financing (credit card)

4. Use Home Energy Upgrade Financing (HEUF) option presented by Southern California Gas Co

5. Use PACE financing once available or other financing models provided by the CEC (currently in the works to fill the financing gap)

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Contractor Requirements

BASIC PACKAGE

California State License Board (CSLB) license in specialty

Bonding and in good standing

Insurance to IOU minimums

Building permits must be pulled on all work as required by local jurisdiction requirements

ADVANCED PACKAGE

In addition to the above, participating contractors must be BPI accredited or have a BPI analyst on staff.

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How Can Contractors Participate?

Attend a Contractor Orientation Session

Attend a Contractor Participation Workshop

Must meet the IOUs requirements

Submit required documentation and sign a Contractor Participation

Contractors who are BPI accredited or have a BPI Building Analyst on staff can perform work in both the Basic and Advanced

Contractors who qualifies for only for the Basic Package must complete a 3-Day Basic Training or a 12-Days Home Performance Training

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Upcoming Training Classes 2011

•• Date Workshop Type Location Info.

• 25-Jan-11 Participation Workshop 6:00 pm-9:00 pm

• Palm Desert, CA

• 26-Jan-11 Participation Workshop 3:00 pm-6:00 pm

• Baldwin Park, CA

• Feb-11 Participation Workshop Ventura, Orange

• Mar-11 Participation Workshop Riverside, LA, SB

• Apr-11 Participation Workshop Ventura, Orange- (LACEP may pay for additional PW)

• May-11 Participation Workshop Riverside, LA, SB

• Jun-11 Participation Workshop Ventura, Orange- (LACEP may pay for additional PW)

• Jul-11 Participation Workshop Riverside, LA, SB

• Aug-11 Participation Workshop Ventura, Orange- (LACEP may pay for additional PW)

• Sep-11 Participation Workshop Riverside, LA, SB

• Oct-11 Participation Workshop Ventura, Orange- (LACEP may pay for additional PW)

• Nov-11 Participation Workshop Riverside, LA, SB

• Dec-11 Participation Workshop Ventura, Orange- (LACEP may pay for additional PW)

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More to Come from Energy Upgrade California Program

• Continue collaboration with SEP recipients (i.e. LA County) on Workforce, Education, & Training and Marketing & Outreach

• Marketing launch in mid- February 2011 to customers

• Begin training Energy Service Representatives (ESR)

• Implement the Customer Facing Outreach (CFO) element of the Program:• Focus on non-owner occupied residents of single family and all multi family

residents in multiple languages (i.e. English, Spanish, Korean, Vietnamese, Chinese, and Indian)

• Conduct an assessment of household consumption patterns, and a walk through examination of the home

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More to Come from Energy Upgrade California Program (continued)

• Implement the Whole House Customer Facing Outreach (WHCFO) element of the Program:

• Focus on owner-occupied residents of single family homes in SCE’s and SCG’s service territory in multiple languages (i.e. English, Spanish, Korean, Vietnamese, Chinese, and Indian)

• Conduct an assessment of household consumption patterns, a walk through examination of the home, a visual assessment of the condition of building shell and HVAC system, and qualify customers for Energy Upgrade California

• Begin developing Moderate Income Direct Install (MIDI) Program and Comprehensive Multi-Family Program

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Cynthia Cyd Swaim

Southern California Gas Company

cmswaim@semprautilities.com