Guest Highlight
Guest Columnist Richard Gerardi, Director for Residential Programs at New York State
Energy Research & Development Authority (NYSERDA), discusses Home Performance with ENERGY STAR® in New York.

 Alliance to Save Energy Column
California's Public Benefit Fund is helping energy efficiency moderate the state's projected energy growth.

State Updates
Legislative and Regulatory News from Arizona, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Michigan, New York, North Carolina and Rhode Island.

RECA Report
Get the latest on the work of the Responsible Energy Codes Alliance (RECA).

The Alliance Wants to Hear from You!
Contact us with suggestions or comments.


Click here to subscribe to the State Energy Efficiency Policy Bulletin
View Archives

 
Home Performance with ENERGY STAR®: A New York Energy $mart SM Program: Cracking the Residential Market for Energy Efficiency

 By Rick Gerardi , Director of Residential Programs, New York State Energy Research and Development Authority

Creating a sustainable business model for large-scale deployment of energy efficiency services into the existing homes sector has been a daunting challenge for several decades. Home Performance with Energy Star® Program was created as a vehicle to address a number of identified concerns, such as indoor air quality and comfort, using energy efficiency techniques to create cash flow for the remedies. The program is comprehensive, aimed at improving the energy efficiency, comfort, affordability and safety of existing homes in New York State. The New York State Energy Research and Development Authority's (NYSERDA) goal is to create a “one-stop” shopping experience for New Yorkers who seek to improve the performance on a number of levels for their existing 1-4 family homes. The program was initially launched in six target markets: Albany, Buffalo, Rochester, Syracuse, Binghamton, and the Hudson Valley with expansion into the New York City, Long Island and Westchester markets proceeding through 2004.

Prior to 2001, there were few home improvement contractors in New York who understood and implemented the building science “house-as-a-system” approach to their work. The home performance industry was quite small. The challenge was to increase the skills of the existing small core of contractors and to build on existing industry participants—insulation and HVAC contractors who are making energy-related home improvements using traditional techniques. The goal was to expand these contractors' knowledge base and practical application of a “systems approach” for performance-based testing techniques and treatments. Comprehensive energy efficiency treatments include: insulation, air sealing, duct sealing, high efficiency heating and cooling equipment, thermostat controls, high-performance windows, high efficiency appliances and lighting. Included also in this Home Performance approach is an assessment of a home's health, comfort and safety; functions which are related to the energy systems of a home which were too often overlooked by contractors, but are of great concern to homeowners.

To build an industry infrastructure of accredited firms and certified technicians, NYSERDA supports the Building Performance Institute (BPI), a building science resource that sets the national standards for assessing and treating homes. BPI accreditation and certification is required for contractors who wish to participate in the program. The program offers training around New York State through the OCM BOCES, a vocational education provider, to assist contractors in preparing for the BPI certification tests. All training offered through the program is subsidized by NYSERDA.

In addition to building a well-trained, professional home performance contractor infrastructure, there was also a need to drive consumer demand for these services. Therefore, NYSERDA developed an aggressive ‘call-to-action' marketing campaign which focused on three crucial areas: (1) recruiting and educating contractors to affect change in home improvement services by using a “whole house” approach for diagnosing and treating homes; (2) increasing consumer awareness of and demand for the services offered by participating Home Performance with Energy Star contractors, and (3) providing a small consumer incentive in the form of an interest rate subsidy on an unsecured Fannie Mae Home Improvement loan which each contractor can offer.

The marketing program, launched in February of 2001, included: television, radio, newspaper, direct mail, co-op advertising, public relations and special events. The spokesperson for the campaign is Steve Thomas, host of America 's favorite home improvement television show. Mr. Thomas is featured in all the advertising and sales collateral materials. The media campaign was pivotal in increasing consumer awareness and demand for energy efficiency services

NYSERDA has also launched the New York Assisted Home Performance with Energy Star program, which provides subsidies to income-eligible New York households, who may not qualify for the Weatherization Assistance Program, to complete energy efficiency upgrades to their homes.

PROGRAM PERFORMANCE
The program is relatively new, but early results are promising. US DOE , US EPA and US HUD have all endorsed this Home Performance w/ Energy Star approach, created and piloted in New York State. The three federal agencies have agreed to promote the program and have fostered additional pilots in five other states, as well as assisting BPI in expanding nationally. Highlights of New York 's efforts include:

  • Over 5000 jobs have been completed at over $7000 per job to date… a rate that doubles each year. Residential customers have invested more than $ 35 million of their own money in home energy improvements. NYSERDA has contributed an additional $6.5 million in subsidies to help over 1700 income-eligible households pay for installation of eligible measures under the New York Assisted Home Performance with Energy Star program.
  • Certification of more than 250 technicians and accreditation of over 100 contracting firms through the Building Performance Institute in whole house building diagnostics and proper installation of measures for greater energy efficiency, health and safety.
  • Increased consumer awareness of Energy Star products and services as a result of NYSERDA's marketing campaign and cooperative advertising program with contractors. In coordination with our marketing efforts for other E NERGY S TAR® programs we sponsor, awareness of the meaning of the E NERGY S TAR® exceeds 60% of New York State consumers compared to 20% nationwide.

LESSONS LEARNED
The New York Home Performance with ENERGY STAR® program has the stated goal of transforming the market for delivery of energy efficiency services to the existing housing market. As such, the implementation approach taken by this program is unique, differing greatly from the approach taken in the more conventional rebate-driven energy efficiency programs. This unique goal and approach has resulted in a number of interesting lessons learned. A few of those lessons are:

  • Start small: By initially launching this program in a single market, then proceeding market by market, program implementers and NYSERDA were able to quickly and effectively integrate any program revisions or modifications that were needed.
  • Market Big: Crucial to the success of this market-based program, is striking a balance between consumer demand and contractor infrastructure. The ‘call-to-action' mass media marketing campaign, using a celebrity spokesperson (Steve Thomas) brought the program immediate credibility and recognition, which was instrumental in generating quick consumer demand. This aggressive and extensive marketing campaign also served to reinforce to potential participants in the contracting field that NYSERDA was making a long-term commitment to the program.
  • Quality Assurance, Quality Control: As the program reaches full scale implementation, permanent systems for assuring quality installations of energy efficiency and other building performance are necessary for the ongoing credibility of the program's promise. Supplementing the BPI on-site inspections through our implementation contractor allows us to score all contractors in the program for quality. This not only protects consumers in this relatively new field, it also creates a level playing field for the majority of competent and professional contractors engaged in the program.

Back to the Top

California Energy Policy Anchored in Energy Efficiency

By Merrilee Harrigan, Director of Education, Alliance to Save Energy

California leading the way in energy efficiency
According to the California Energy Commission, California energy use is growing by about two percent a year. However, thanks to a sweeping array of energy efficiency programs, the state expects to cut this projected growth rate in half, to one percent a year! The California Public Utilities Commission (CPUC) is currently engaged in a long-term administrative planning process to ensure that the state meets its energy growth reduction goals. To help meet the goal, the PUC updated its 2003 Energy Efficiency Plan in March 2004, adding key efficiency elements, including:

  • Approval of $442 million by the CPUC for 2004 and 2005 energy efficiency programs, including increased local government and partnership programs.
  • Adoption of aggressive improvements to the building energy efficiency standards which will become mandatory in 2005. The 2005 standards provide a 10 percent improvement over the 2001 standard; these new standards now account for the time of day that energy is used, and they include efficiency requirements for outdoor lighting – a first in the nation.

Energy efficiency in schools
Middle Schoolers put together an energy patrol to check that lights and computers were turned off in unoccupied spaces.

One of the innovative efficiency programs funded by the CPUC allows California students to play a leadership role in saving energy. The Alliance to Save Energy's Green Schools Program is educating students about energy and the critical role of energy efficiency in their school's and household budgets.


Pinole Valley High School students in California conducted 14 energy audits of small businesses in their community to fund a trip to MIT where they worked with graduate level engineering students on energy issues.

As part of their learning activities, students work with custodians and teachers to discover where their schools are wasting energy, and make immediate changes that save energy. Schools participating in the Green Schools Program generally save between five and 15 percent on electric costs, while learning standards-based math and science concepts. Some parents are startled to find that their children have become the family energy managers, reminding their parents to turn off unneeded lights!



To learn more about the Alliance 's Green Schools Program click here.

Back to the Top

 


Arizona
House Bill 2703 Signed Into Law 5/6/04

HB 2703 requires the Department of Administration to develop and implement a program to enter into energy savings performance contracts. Each contract is for a period up to fifteen years.

For more information click here

 

California
Senate Bill 1565 Read Third time, Passed Senate and is now in Assembly on 04/22/2004

SB 1565 would require the California Energy Commission to adopt a strategic plan for the state's electric transmission grid to identify and implement investments needed to ensure reliability and to meet future growth in load and generation, including, renewable resources, energy efficiency, and other demand reduction measures. This bill would require the strategic plan to be included in the integrated energy policy report adopted on November 1, 2005 .

For more information click here

House Bill 1468 Withdrawn from Committee. Re-referred to Committee on Rules 5/25/2004

HB 1468 would require the state, not later than January 1, 2010 , to adopt and implement measures to reduce petroleum demand to levels not exceeding 2004 levels, and maintain or reduce demand levels for the years from 2010 to 2020.

For more information, click here

House Bill 2311 Referred to Committee on Governmental Organization 5/27/04

HB 2311 would create a sustainable building goal to make new and current state buildings more efficient. The bill would require the Secretary for State and Consumer Services to facilitate the incorporation of sustainable building practices into the planning, operations, policymaking, and regulatory functions of state agencies.

For more information click here

House Bill 2628 Referred to Committee on Transportation 5/20/04

HB 2628 would allow advanced technology partial zero-emission vehicles (AT PZEV) to use HOV lanes.

For more information click here

Senate Bill 1703 Referred to Committee on Natural Resources 5/27/04

SB 1703 would establish a voluntary California certified green business program to certify businesses that engage in environmentally beneficial operations.

For more information click here

 

Colorado
House Bill 1225 Sent to Governor 5/20/04

HB 1225 would create a low-income energy assistance program. It would require utilities to collect an energy assistance charge from each electric and gas customer beginning January 1, 2005, unless a customer opts not to pay the charge.

For more information click here

 

Connecticut
Senate Bill 145 Signed by the Governor 5/10/04

SB 145 requires the Secretary of the Office of Policy and Management to establish, by regulation, minimum energy efficiency standards for certain heating, cooling, lighting and other types of products.

For more information click here

Senate Bill 218 Signed Into Law 5/21/05

SB 218 extends the sales tax exemptions to July 1, 2008, for new motor vehicles including: vehicles exclusively powered by clean alternative fuels, conversion equipment that convert vehicles to the exclusive use of clean alternative fuels, or dual use of such fuel and any other fuel, equipment associated with compressed natural gas filling or electric recharging stations, and high mileage motor vehicles.

For more information click here

Senate Bill 595 Signed Into Law 5/21/05

SB 145 establishes goals for 2010, 2020 and on a long-term basis for the reduction of greenhouse gas, and will establish reporting requirements for greenhouse emissions, as well as establish a Governor's Steering Committee on Climate Change. It will also require the Department of Administrative Services to maintain information about how the government is minimizing its impact on global warming.

For more information click here

 

Georgia
Senate Bill 356 Signed by Governor 5/11/04

SB 356 establishes a Carbon Sequestration Registry to register offsetting reductions in greenhouse gases by carbon sequestration.

For more information click here

 

Hawaii
House Bill 2049 Signed Into Law 6/2/04

HB 2049 increases the allowable length of energy performance contracts from 15 years to 20 years. This bill also broadens the financing options, amends definitions, and replaces shared savings plans with guaranteed savings plans.

For more information click here

 

Illinois
House Resolution 929 Adopted by Voice Vote 6/1/04

HR 929 encourages the State's public universities to prepare an energy efficiency and conservation plan for their buildings.

For more information click here

 

Michigan
House Bill 5910 Referred to Committee on Energy and Technology 5/13/04

HB 5910 would establish a sales tax exemption on the proceeds from the sale of a qualified energy efficient home appliance.

For more information click here

 

New York
House Bill 748 Reported and Referred to Assembly Ways and Means, and Committee Meeting set for Assembly Energy 5/11/04

HB 748 would direct the New York power authority to adopt and implement an insulation and energy conservation plan giving power authority customers the opportunity to enter into agreements with the power authority to receive financial assistance to finance the installation of energy conservation measures. This financial assistance would be repaid over a period of ten years, with savings in energy costs and related costs which accrue as a result of installing such measures.

For more information click here

House Bill 1013 Reported and Referred to Assembly Ways and Means, and Committee Meeting set for Assembly Energy 5/11/04

HB 1013 would prevent the public service commission from raising utility rates to offset revenue loss due to energy conservation efforts by consumers.

For more information click here

House Bill 11139 Introduced and Referred to Committee on Assembly Ways and Means

HB 11139 would remove hybrid vehicles from the alternative fuels credit against corporation taxes, business franchise taxes and personal income taxes, and establish separate and independent tax credits of $4,000 for the purchase of hybrid vehicles.

For more information click here

House Bill 11237 Introduced and Referred to Committee on Assembly Transportation

HB 11237, the House version of S 6502, would allow hybrid vehicles to travel in HOV lanes, regardless of the number of passengers.

For more information click here

Senate Bill 4830, known as the "Governor's Program bill", was referred to the Energy and Telecommunications Committee 1/7/04

S. 4830 would allow the New York Power Authority to solicit applications from the public to assist in establishing energy efficiency and clean energy programs. The bill also would allow the Power Authority to enter into contracts with these public groups, and it defines certain energy terms to make the contract process easier.

For more information click here

 

North Carolina
House Bill 1150 Referred to Committee on Public Utilities 4/10/04

HB 1150 would direct the utilities commission to establish energy efficiency standards for various products.

For more information click here

Senate Bill 1418 Referred to Committee on Appropriations/Base Budget 5/28/04

SB 1418 would allow the repairs and renovations fund only to be used when proposed projects are designed and constructed to minimize energy and water consumption.

For more information click here

 

Rhode Island
Senate Bill 3123 Introduced, Referred to Senate Financial, Technology, and Regulatory Issues 5/18/04

SB 3123 would amend the Rhode Island utility deregulation act to provide economic incentives for the self-generation of electricity by large commercial and/or industrial customers.

 For more information click here

 

The Responsible Energy Codes Alliance (RECA) continues its work to promote adoption of the International Energy Conservation Code (IECC). In May, RECA and its members were active in Arizona, Georgia, Illinois, Indiana, New York, Maine, and Michigan. In Illinois, thanks in part to the concerted effort of RECA members, the IECC energy code for commercial buildings passed the legislature and is now awaiting the Governor's signature. States to watch for code developments in the month ahead are Indiana, Michigan and Wisconsin.

Click here to visit the RECA website for more information.

Additional Resources:

Building Codes Assistance Project (BCAP), a joint initiative of the Alliance to Save Energy, American Council for an Energy-Efficient Economy, and National Resources Defense Council, is dedicated to assisting states in the development and implementation of statewide building energy codes. For more information click here.

Appliance Standards Awareness Project (ASAP), a joint venture of the Alliance to Save Energy, American Council for an Energy-Efficient Economy, and the Natural Resources Defense Council, provides advice and technical support to parties interested in advancing state standards. ASAP is dedicated to increasing awareness of and support for appliance and equipment efficiency standards. For more information click here.

Back to the Top

 

Edited by Anna Carmichael, Policy Associate

This page was updated July 29, 2004
The Alliance to Save Energy
1200 18th Street, NW, Suite 900
Washington, DC 20036
Phone: 202/857-0666    Fax: 202/331-9588
policyinfo@ase.org                     www.ase.org