For National Association for State Community Services Programs

Turning Carbon Savings from Residential Energy Efficiency Retrofits into a New Revenue

Stream

Jo-Ann L. Choate, MaineHousing

March 1, 2012

The Carbon Quantification Project Timeline

Verify and sell

carbon emission reduction

s

Weatherization

methodology finalized

Develop weatherizati

on methodolog

y 2011

2010

2009

2008

Weatherize A Home

CarbonEmissionReduction

(ERs)

Measured bya validated

methodology

Verified by an accredited

third partyverifier

Recorded ina CarbonRegistry

ERs soldin the market

Weatherizemore homes

Start Here

Carbon Quantification Project: Here’s How It Works

Buyers Purchase ERs

Energy Data Repository

Growth of the Carbon Market

Essential Steps to Carbon Savings

Essential Steps to Carbon Savings

Choose Category

Choose Approach

Calculate Emission Reductions

Monitor Emission Reductions

Prove Additionality

• Performance Standard

Four Eligible Categories

Category A: Whole house retrofit

Category B: Building envelope improvements

Category C: Appliance replacement

Category D: Mobile home replacement

Category A:

- Electric & fuel savings

- Appliances- Central heating- Insulation - Air sealing

- This category is not applicable in Maine under RGGI.

Whole House

Pictures of houses

Category B:

- Fuel savings- Central heating- Insulation - Air sealing

- The MaineHousing Project will use this category.

Building Envelope

Category C:

- Electricity savings- Appliance

Replacement

- This category is not applicable in Maine under RGGI.

Appliance Replacement

Category D:

- Electricity & fuel savings

- Only the fuel savings are eligible in Maine.

Mobile Home Replacement

Essential Steps to Carbon Savings

Choose Category

Choose Approach

Calculate Emission Reductions

Monitor Emission Reductions

Prove Additionality

• Performance Standard

Five Approaches to Calculate Emission Reductions

1. Adjusted consumption

2. Pre-and post-retrofit audit

3. Control group

4. Deemed savings

5. Mobile homes replacement

Categories ApproachesWhole House Retrofit

Building Envelope

Appliance Replacement

Mobile Home Replacement

1. Adjusted Consumption

2. Pre- and Post-retrofit audit

3. Control Group

4. Deemed Savings

5. Mobile Home

1. Adjusted Consumption

3. Control Group

Essential Steps to Carbon Savings

Choose Category

Choose Approach

Calculate Emission Reductions

Monitor Emissions Reductions

Prove Additionality

• Performance Standard

Baseline: Energy consumed by a given dwelling for one year prior to project implementation. Emission reduction

calculations are measured from the baseline.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20190

20

40

60

80

100

120

140

160

Year

Fu

el C

on

su

mp

tio

n (

MB

TU

)

Baseline Fuel Consumption

Project Year Fuel Consumption

Calculated Emission

Reductions

y = Year i = DwellingJ = Fuel type I = # of Dwellings

HDDCFy = Heating degree days correction factorFb,i,j = Baseline consumption year priorFp,y,i,j = Project consumption in year y followingCalj = Calorific value of fuelFCO2,j = CO2 emissions factor of fuelLy = Leakage

Emission reductions =

Essential Steps to Carbon Savings

Choose Category

Choose Approach

Calculate Emission Reductions

Monitor Emission Reductions

Prove Additionality

• Performance Standard

Prioritized Wx Tasks Detaile

d Work OrderPre Retrofit

Energy Audit

Owners Wx Contractor

EnergyConservation

OnlineSystem

ECOS Post Retrofit Energy Audit

EDR

Policy Guidance Detailed Reports Statistical Analysis

Energy Data Repository

Essential Steps to Carbon Savings

Choose Category

Choose Approach

Calculate Emission Reductions

Monitor Emissions Reductions

Prove Additionality

• Performance Standard

A Ton of CO2 must be Additional in order to be sold

Additionality:

But for the Project (that weatherizes homes) the energy

savings would not have happened

The performance standard is a benchmark above which energy improvements in the

home are not business as usual

Energy savings in NON-Weatherized Homes

Energy savings in Weatherized Homes

Percent Savings

0%-2% 4% 15%-4% 24% 50%

Performance Standard Benchmark

Benefits of Selling CO2

1. Revenue for energy efficiency retrofits

2. Comprehensive, transparent, & verified data

1. Proof of public benefits

2. Managing projects

3. Tracking performance

4. Analysis and reports

Steps to Bring Carbon Savings to Market

1. Scope and Plan Project

2. Identify and Manage Carbon Data

3. Write Project Description

4. Validate Project Description

5. Verify Offsets

6. Register and Sell Offsets

Questions