Residential Retrofit & ARRAWard Lenz, Director, Energy OfficeEnergy Division – NC Department of Commerce

2010 NC Housing Finance Agency ConferenceSeptember 17, 2010

Big Changes in the Last Year…• Moved SEO from Administration to

Commerce Energy Division• Transfer of Weatherization Assistance

Program from DHHS to Commerce Energy Division

• Staff increase from 20 to more than 40 (and still hiring)

• More levels of bureaucracy and oversight• New management

…Same Old Goal• To ensure a sustainable

energy future for the citizens of North Carolina.

• Objectives:– Advance energy efficiency– Encourage growth and

development in the state’s energy economy

– Make NC a leader in the creation of green jobs

Image: Center for American Progress. “Efficiency Works: Creating Good Jobs and New Markets Through Energy Efficiency.” September 2010.

SEO Retrofit Programs• Sponsored programs:– Builders of Hope– E-Conservation

• In-house programs:– Weatherization Assistance Program– Retrofit Initiative

Weatherization (Wx)• Ten-fold increase in funding– FY 06/07/08: $12-million– FY 09/10/11: $131-million!!!

• Four-fold increase in number of homes being improved (3,00014,000)– Increased average unit expenditure from $2,699

to $6,000– Allows deeper retrofits resulting in even lower

energy bills

Wx Objectives• Health and Safety• Building Durability• Client Education and Comfort• Energy Savings

Wx Progress to Date• Houses improved – More than 5,000• Jobs created– Weatherization Assistance Program (Program

administration and quality control)– Local agencies and installers

• Energy saved• Average energy bill savings

Retrofit Initiative• Economic development initiative to ensure

retrofit market is self-sustaining after ARRA funding ends

• Started with an award from the National Governors’ Association

• Coordinates and leverages efforts from around the state, not just SEO run programs

Before After

Goal: Transform the Market

How?• Collaboration– Open strategic planning process with as many

stakeholders as possible– Working groups to discuss specific issues– Focus on infrastructure

• Program Elements– Market Development– Business Development– Workforce Development– Quality Assurance

Market Development• Will develop two new programs to

supplement existing federal and utility incentive programs:– Existing Homes (Brand TBD, $7-million) Marketing

and education/outreach, state-funded incentives, and contractor training

– Loan Loss Reserve ($5-million) Encourage the financial industry to develop new loan products that make retrofits more affordable

Business Development• Support and advance

existing businesses in the retrofit sector– Retrain out-of-work new

construction contractors on retrofit specific knowledge

– Develop or modify tools to help new businesses enter the retrofit market

Workforce Development• Create feeders that drive new professionals

into well-defined career ladders• Provide training and certification programs

that develop workers on these career ladders and increase the level of knowledge across the industry

Quality Assurance• Assure customer satisfaction• Ensure all retrofit measures are installed

properly • Measure and verify energy savings• Provide feedback for continuous improvement

of all program areas

Retrofit Initiative• Anticipated campaign launch: Dec 15• Expect to retrofit 3,000-homes in CY2011• Expect to train and place up to 1,000-persons

in retrofit jobs• Will work with third-party administrator to

implement

Summary• Build the market– Communications, financing

• Support the contractor base– Training, quality assurance

• Exit gracefully?