Opportunities for Developing the Building Retrofit Industry and Market (BRIM)
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Transcript of Opportunities for Developing the Building Retrofit Industry and Market (BRIM)
1 • December 13, 2010 Retrofit Strategy Meeting•
Opportunities for Developing the
Building Retrofit Industry and Market (BRIM)
John Cleveland, Innovation Network for CommunitiesJoel Rogers, COWS (Center on Wisconsin Strategy)
Chinwe Onyeagoro, O-H Community Partners
December 13, 2010Rockefeller Foundation, New York City
2 • December 13, 2010 Retrofit Strategy Meeting•
Agenda
Meeting Purpose
Develop a shared framework to guide funder investments in the development of the Building Retrofit Industry and Market (BRIM).
Meeting Outcomes
Agreement on broad approaches to :• Develop a portfolio of promising BRIM development investments• Improve the BRIM TA infrastructure and its post-ARRA design• Improve collaboration between funders & USDOE and the field on
BRIM development and TA
Agenda 10:00 Welcome and Introductions; Agree on Outcomes
10:15 Project Process and Summary Recommendations
10:45 BRIM Market Development Discussion
12:00 Lunch
12:30 TA Infrastructure Recommendation Discussion
1:30 Strategic Collaboration Discussion
2:00 Next Steps
2:30 Adjourn
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Project Summary
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Project Purpose & Deliverables
Conduct a scan of the technical assistance (TA) infrastructure for the building retrofit market, and recommend steps to support the
design and development of a collaborative applied R&D innovation infrastructure for the industry.
1. Scan major providers of TA for the BRIM.
2. Identify issues in the current TA system and recommend steps towards their improvement.
3. Identify the requirements of an applied R&D and innovation infrastructure for the industry.
4. Facilitate a meeting of Better Building grantees to explore opportunities for collaboration on system development.
5. Facilitate a meeting of funders and USDOE to develop a shared strategy framework for investment in BRIM development.
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Process
1. Inventory of TA providers (156 total)
2. Secondary analysis of 78 players
3. Phone interviews with 27 individuals
4. Interim scan findings memo
5. Feedback on Interim Findings
6. Meeting of 19 Better Building sites (Oct 21)
7. Meeting with USDOE staff
8. Final report preparation
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Framing Observations
• Long-term, it’s about building a market, not implementing programs
BRIM is not one market, but several related segmentsMost market segments are at a very early stage of developmentMost retrofit initiatives are at an embryonic state of implementationDeveloping markets is very long term work; focused investments
in this market are a recent phenomenon
• BRIM investment needs to be approached simultaneously at the local and national levels
This will require a shared framework for analysis and action
• It requires a long-term view and strategic coordination across multiple players – funders; federal government; local government; private and NGO enterprises
• Philanthropy can play a key role in market development
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Three Kinds of Work
ACTIVITY DEFINITION
Program Implementation
Implementing retrofit programs and strategies in local and regional markets.
Technical Assistance
Advising implementers on program design, and linking them to other sources of knowledge and support, including their peers.
Market Development
Investing in knowledge, innovations, standards and institutions that support the development of self-sustaining market transactions
There are three kinds of work that different players are doing in the BRIM niche. This scan focused on the second two – Technical Assistance and Market Development.
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Three Primary Opportunities
Coordinate National
Investments in Market
Development
Plan Now for the Post-ARRA
TA Infrastructure
Explore New Structures for
Field Collaboration
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Findings & Recommendations – BRIM Development
FINDINGS RECOMMENDATIONS• Investing in market development is
a specialized activity
• The BRIM is at a very early stage of development
• BRIM has several distinct sub-segments that need to be addressed differently
• Significant investments have been made in key aspects of market development
• There are many promising market development opportunities
• Market development investments are not well coordinated
1. Agree on a framework for BRIM development investments and systematically catalogue current initiatives and investments (funders; feds; private).
2. Create a three way partnership between USDOE , funders and market players to collaborate on market development investments.
3. Develop a network infrastructure to support collaboration and project execution on market investments over the long term.
4. Hold an annual BRIM Development conference.
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Summary of Findings & Recommendations – TA
FINDINGS RECOMMENDATIONS
• USDOE is investing $20+ million in a national BRIM infrastructure
• USDOE Technical Assistance Program (TAP) funding is temporary; most funding ends by CY 2012
• The current TAP is heavily focused on managing transactions; design of a knowledge management system is not yet apparent
• The process for quality control is not transparent
1. Build on the base created by the USDOE TAP initiative.
2. Start now to plan for a post-ARRA TA infrastructure.
3. Make sure that structure has a “learning system” that rapidly disseminates knowledge across players and markets; and use this system to inform market development investments.
4. Develop robust feedback loops and a continuous improvement process.
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Summary of Findings and Recommendations – Collaboration
FINDINGS RECOMMENDATIONS
• USDOE investments are leading BRIM development, but many other players are also playing important roles.
• Two kinds of collaboration structures could help advance the field:
• A structure for formal collaboration between funders
• A vehicle for USDOE to interact with key players in the field, outside of program implementation relationships.
1. Formalize collaboration across funders through a Working Group structure.
2. Explore the best way to organize market stakeholders in ways that can align strategies for market development. (e.g. trade associations; coalitions; intermediaries; Federal Advisory Committees.)
3. Develop MOUs or other structures for collaboration between USDOE and both the Funders Working Group and market stakeholders.
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Top Down and Bottom Up…
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…With an Integrated Investment Strategy
Funders Working Group
USDOE & EPA
Market Stakeholders
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Opportunities for Developing the Building Retrofit Industry and Market (BRIM)
December 13, 2010Rockefeller Foundation, New York City
Supporting Slides
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Framing the Building Retrofit Industry & Market
(BRIM) Opportunity
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Summary of Key Points
• BRIM is one segment of a much larger “green economy” sector
• Markets develop in stages – BRIM is at a very early stage of development
• BRIM has several distinct sub-segments that need to be addressed differently
• Significant investments have been made in key aspects of market development
• There seems to be consensus on the high level market development opportunities
• Market development investments are not well coordinated
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It Is About Building a Market, Not Implementing Programs
Better Buildings Vision:
“A self-sustaining market for building energy efficiency retrofits that results in economic, environmental, and energy
benefits across the United States.”
Living Cities, Lessons Learned:
“Concentrated philanthropic investment together with unprecedented federal funding begs for coordination and
intentional efforts to invest in creating an industry (supply, demand and an enabling environment for scaled
transactions), not just disparate parts.”
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BRIM Is Part of the Larger “Green Economy”Category Brookings-Battelle Sub-Segments
Energy Efficiency
• Battery & Energy Storage Technologies • Electric/Hybrid Drive Technologies &
Vehicles • Energy Efficient Appliances • Energy Efficient Building Products &
Materials • Energy Efficient HVAC & Building Control
Systems
• Energy Efficient Lighting • Energy Research, Engineering, & Consulting
Services • Fuel Cells & Hydrogen • Green Architecture, Building Design, &
Construction • Other Energy Efficient Products • Water Efficient Products
Energy From Renewable Sources
• Biofuels/Biomass • Geothermal Energy • Hydropower Energy • Solar PV Energy
• Solar Thermal Energy • Waste-to-Energy • Wave/Current/Ocean Power Energy• Wind Energy
Compliance & Training
• Regulatory And Compliance• Training
Natural Resource Conservation
• Conservation And Management• Organic Farms And Organic Food Production• Sustainable Forestry & Related Products
Pollution and GHG Reduction; Recycling and Reuse
• Air & Water Purification Technologies • Air/Water/Sewage/Solid Waste
Management & Treatment • Clean Coal & Carbon Sequestration • Environmental Research, Engineering, &
Consulting Services • Green Building Products & Construction
Materials, NEC
• Green Chemicals and Related Green Products • Nuclear Energy • Other Green Products • Pollution Control & Prevention • Public Mass Transit • Recycled-Content Products • Recycling & Reuse • Remediation Technologies & Services • Smart Grid Systems/Smart Metering
Segmentation based on Brookings/Battelle Metro Green project
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BRIM Has At Least Five Separate Segments
“Retrofitting of existing buildings to reduce overall energy consumption and greenhouse gas emissions.”
Existing Building Stock:
•40% of all energy consumption•72% of electricity•38% of carbon emissions•$400 billion to heat and cool
Single and two family
residential
Multi-family
Residential
Small C/I
Commercial/Industrial
Large C/I MUSH*
*Municipal, University, Schools, Hospitals
Each market segment has significant variations in customers, economics, drivers, and regulatory environments. Many segments have further defined
sub-segments.
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Energy Consumption Varies by Building Type
Source: USDOE, “Better Buildings Overview”, 11.10.10
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Markets Develop in Stages
Market Stage
Early Market Market Growth Maturity
Market for retrofits can be developed like any other market: by targeting and reaching additional consumer segments
2.5% 13.5% 34% 34% 16%
Late Majority
Early Adopters
Early Majority
Innovators Laggards
Rogers Innovation Adoption Curve
www.valuebasedmanagement.net
Source: “Market Development for Building Energy Efficiency Retrofits”, RW Ventures and O-H Community Partners
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Healthy Markets Have Common Characteristics
SUPPLY DEMANDEXCHANGE
• Perceived customer need• Good value proposition• Good customer
information• Consumer confidence in
performance• Clear performance
measurements• Affordable
• Low transaction costs• Easy for buyers and
sellers to find each other• Trust in the transactions• Feedback loops affect
future quality• Consistent industry
standards that govern transactions
• High quality producers• Adequate labor supply• Occupational credentialing
and certification systems• Well developed supply
chains• OEM supplier standards• R&D infrastructure that
supports innovation
Costs of Production Costs of Transactions Perception of Need
Healthy Market Characteristics
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Stakeholders Approach The Market With Many Motivations
Customer Value Proposition
•Reduced GHG Emissions•Economic Development
•Community Development•Poverty Alleviation
Robust Retrofit Market?
How aligned are perceived customer needs with the desired environmental and economic development benefits?
“Will the dogs eat the dog food?”
Environmental and Economic Development
Benefits•Comfort
•Energy Savings•Improved Home Values
•Helping the Environment
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It is Not Yet Clear Where Retrofits Fall in the Market Development Spectrum
Source: Bob Weissbourd, RW Ventures
Public Policy Incentives Private Exchange
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Some Retrofit Market Barriers
SUPPLY EXCHANGE DEMAND
• Low margins compared to cost of sales
• Difficult to aggregate demand
• Some labor scarcity
• Requires new business models
• High owner transaction costs
• Difficult to assess competence & quality
• Multiple vendors required
• High effort relative to cost and benefit
• Consumers have other priorities
• No metrics to measure savings
• Value not reflected in equity
• Unaffordable for some segments
• Financing can be complicated
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Living Cities Market Development Framework
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Different Stakeholders Play Different Roles in Market Development
PlayersRoles
Who Primary DriversMain Leverage
Points
Private
“Fund, Transact, Deliver And Consume”
Business and Consumers
Economic Self-Interest
Value Exchange
Public
“Set, Incent, Mandate And Reinforce Standards And
Policies”
Governments & Government
AgenciesPolitical Process
Policy, Incentives and Regulation
Civic
“Build Field and Capacity”
Non-Profits and Philanthropy
Values, NormsSubsidies and
Advocacy
Source: OH Community Partners
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There Are Four Main Ways to Invest in Market Development
Knowledge Creation
Research on market dynamics; core technologies; best practices; benchmarking; etc.
Innovation Development of new products, services, technologies that advance the market.
Standards Creation of policy requirements & industry standards that enable consumer protection; fair trade; social equity; quality standards; environmental protection; etc.
Institutions and Structures
Organizations, trade associations, networks and other vehicles for organizing players for collaboration within the market.
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There Are Many Markets Where Foundations Have Played Important Development Roles
• Affordable Housing
• Public Education (Choice and Charters)
• Underbanked Consumers
• Sustainable Forestry
Investments have spanned all four
categories:
• Knowledge and R&D
• Innovations
• Standards and Policy
• Institutions and Structures
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Examples – Affordable Housing and Education
MarketInvestment
Knowledge Creation
Innovation Standards and Policy Institutions & Structures
Affordable Housing
•Ongoing research on best practices
•Programs in “weak” market cities
•CDFIs financing private developers
•Advocacy and design of public policies: Federal low income housing tax credits; federal housing vouchers; local zoning, land banking policies
•Guidelines for measuring housing affordability
•Building standards for low income housing
•Community development corporations
•LISC; National association of CDCs
•State housing authorities
Public Education
•Studies about drop outs, teacher effectiveness, school effectiveness, etc.
•Start-up support for charter schools
•Support for experiments in school design; school vouchers; teacher pathways; student performance measurement systems
•Consumer access to information about school performance
•Charter authorizer standards for contracting with charter schools
•Advocacy and design for legal framework for school choice and charters
•City-based “centers” to support charter growth
•Various national and state associations of charter authorizers, schools
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Examples – Underbanked and Sustainable Forestry
MarketInvestment
Knowledge Creation
Innovation Standards and Policy
Institutions & Structures
Underbanked Consumers
•Develop market intelligence (e.g., customer segmentation)
•Assess existing products and services (e.g., mobile banking)
•Promote partnerships
•Invest in new products and companies targeting underbanked consumers
•Development of industry best practice
•Identify & advocate on public policy issues
•Inform regulatory standards (FDIC, etc.)
•Creation of a market-engaging innovation capacity (CFSI) with investment fund
•Industry Roundtables
Sustainable Forestry
•Analysis of global forestry markets and systems
•Development of sustainable forestry certification process
•Development of market-based branding partnerships (e.g., retailers)
•Development of sustainable forestry property easements
•Development of sustainable forestry principles and monitoring practices
•Indicators of SF at country and “unit” levels
•Development of certification organization
•Support for NGO advocacy organization
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Some Examples of National Investment From Other Fields
Example Purpose
Cooperative Extension Service and Land Grant
Universities
• Land Grant Universities established in 1862; CES in 1914• Roles changed over the last 100 years• Primary focus on the improving productivity of U.S.
agricultural industry
Fraunhofer-Gesellschaft
• German network of 57 research institutes focused on manufacturing intellectual property development and consulting
• Areas include microelectronics; process engineering; materials; sensors; etc.
• $1 billion in annual revenues; 50% government funded
National Center for Manufacturing Sciences
• Founded in 1986 by President Reagan EO• Originally focused on machine tool industry; now focused on
manufacturing technology• 60+ members• Manages consortial applied R&D projects
Manufacturing Extension Partnership
(MEP)
• Organized out of the National Institute of Standards and Technology
• $120 million annual budget; Centers in every State• Customized consulting and network development for SMEs
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BRIM Development Opportunities
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Key Points
• There are many promising opportunities for investing in BRIM development – and a reasonable level of consensus on the priorities
• There is no “silver bullet” strategy available – it requires many investments in many facets of the market
• The investments need to be coordinated with each other to maximize learning and adaptive capacity
• Each area of investment is complex in its own right – managing the complexity across multiple domains is quite challenging, but not impossible
• Different players have different areas of expertise; it is important to differentiate and specialize
• In the absence of strong industry institutions, some kind of network structure will probably be needed to coordinate investments
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Some BRIM Development Opportunities (1)
Market Problem Development Opportunity
Knowledge of Customers
• Standard definitions of market segments• Longitudinal consumer research on perceptions of the value
proposition
Effective Marketing• Development of common messages and marketing strategies
by segment• Consistent branding of the value proposition for customers
Policy Incentives• Research on impact of specific policy incentives on customer
behavior by segment
Information
• Energy management tools• Energy scoring platforms & building rating systems• National utility data sharing agreements• National energy use databases• Standardized monitoring and verification protocols
Asset Valuation• Building industry comparables for EE buildings and changing
appraisal methodology
Financing
• Industry accepted underwriting standards• Alternative financing business models• Secondary market development• Leveraging utility system benefit charges
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Some BRIM Development Opportunities (2)
Market Problem Development Opportunity
Attribute Market Access
• Standards for carbon credit & offset certification• Standards on ownership of carbon credits• Standards for inclusion in forward capacity markets
Talent Supply Chain
• Occupational credentialing and certification systems• Standardized education and training curricula• Labor demand forecasting systems
Contractor Quality• Contractor certification systems• Contractor development systems• Contractor business tools
Information Technology
• Enterprise Resource Planning (ERP) systems for integrated management of customer transactions
• Data and software interoperability standards
Input Costs • Material and components joint purchasing
Building Technology
• Applied R&D in new building energy efficiency technologies
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One Way of Segmenting the “Opportunity Portfolio”
Market Opportunity
Type of Investment
Knowledge Innovation Standards Institutions
Knowledge of Customers
Marketing
Policy
Information
Asset Valuation
Financing
Attribute Markets
Talent SCM
Contractors
IT
Inputs
Technology
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Another Way of Looking At It…
Market Opportunity
Market Segment
Residential Multi-family C/I MUSH
Knowledge of Customers
Marketing
Policy
Information
Asset Valuation
Financing
Attribute Markets
Talent SCM
Contractors
IT
Inputs
Technology
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Envisioning a “Portfolio” Within One Area
INFORMATION
Market Opportunity Market SegmentResidential Multi-family C/I MUSH
Energy Scoring Systems
Building Labeling
National Utility Data Sharing Agreements
National Energy Use Database
Monitoring & Verification Protocols
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Anatomy of Each Portfolio Project
• What are the deliverables?• Who manages the project?• Who are the stakeholders that
need to be engaged?• What is the project plan?• What is the budget?• Who are the investors?• How does it connect to other
work?• What is the scaling
hypothesis?
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Potential Portfolio Project Example
Energy Efficiency Comparables Network
Project Manager • CNT Energy
Deliverables
• A system for establishing comparables for energy efficient homes in 8 markets
• Implemented appraisal methods that value home energy efficiency (“From PITI to PITIU”)
Stakeholders• Better Building sites; National Association of Realtors; local MLS boards
and systems; appraisers; lenders
Scaling Hypothesis
• Market adoption in 8 large markets will speed national adoption through MLS organizations
Project Plan & Budget
• Define target areas; recruit retrofit and MLS partners• Sign MOUs between retrofit partners and MLS organization ($60,000; 6
months)• Develop and implement an MLS retrofit system with verification protocols
($360,000; 12 months)• Implement compliance steps; build up database of comparables; agree on
appraisal methodology changes ($600,000; 12 months)
Investors • TBD
Links to Other Work
• USDOE Home Energy Score• CNT My HomeEQ• Conservation Services Group MLS project in NY
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Putting It All Together…
Residential
Multi-Family
Small C/I
Large C/I
MUSH
Market Building in Three Dimensions
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Examples of Current Market Development
Investments
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A Very Incomplete Set of Examples of Market Development Investments
Market Opportunity
Market Segment
Residential Multi-family C/I MUSH
Customers LBL Driving Demand ResearchMarketing
Policy
Information Residential Home Scoring System
Commercial Bldg Rating System; EPA Portfolio Manager
Asset Valuation EE Comparables Network
Financing HUD Title I “Power Saver” Program
DBA Foundation Multi Family
Database
Attribute Mkts
Talent SCM Residential Retrofit Guidelines
Contractors
IT BPI Home Perf. XML
Inputs
Technology USDOE Building Energy Efficiency Hub; Energy Efficient Homes Partnerships
45 • December 13, 2010 Retrofit Strategy Meeting•
National Residential Home Scoring System
"The Home Energy Score will help make energy efficiency easy and accessible to America's families by providing them with straightforward and reliable information about their homes' energy performance
and specific, cost-effective energy efficiency improvements that will save
them money on their monthly energy bills.“ (USDOE Press Reslease)
• Part of the Recovery Through Retrofit Initiative
• Pilot process launched in fall, 2010 in 10 pilot communities and states covering all climate types
• Scoring system developed by Lawrence Berkeley Labs
• Scores a home on a range of 1-10, with 10 the most efficient home
• Scores are adjusted for climate zones
• Will be launched nationally in late 2011
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National Residential Retrofit Guidelines
Key Content:• Job Task Analyses• Essential Knowledge,
Skills and Abilities (KSAs)
• Technical Standards Reference Guide
• Standard Work Specifications
Purposes:• Lay the foundation for a worker certification & training
program• Increase workforce mobility up and across career
ladders• Help training providers develop course content and
curricula• Build consumer and investor confidence in work quality
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Building Energy Efficiency “Innovation Hub”
• One of three hubs – solar energy; advanced nuclear reactors; building energy efficiency technology
• Housed at Penn State University
• $122 million in funding
• Collaboration between USDOE; NIST; EDA and SBA
• The R&D program will incorporate a systematic analysis of the role of policy, markets and behavior in driving the adoption and use of energy technologies in buildings.
“The mission of this Energy Innovation Hub is to research,
develop and demonstrate highly efficient building components,
systems, and models which are applicable to both retrofit and new
construction.”
Technology Focus Areas:
• Computer simulation and design tools
• Advanced combined heat and power (CHP) systems
• Building-integrated photovoltaic systems
• Advanced HVAC systems • Sensor and control networks
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Energy Efficient Home Partnerships
Partnership Grantees1.Advanced Residential Integrated Energy
Solutions (ARIES)2.Alliance for Residential Building Innovation
(ARBI)3.Building America Retrofit Alliance (BARA) 4.Building America Partnership for Improved
Residential Construction (BA-PIRC) 5.Building Energy Efficient Homes for America
(BEEHA)6.Building Industry Research Alliance (BIRA) 7.Building Science Corporation (BSC) 8.Consortium for Advanced Residential Buildings
(CARB)9.Habitat Cost Effective Energy Retrofit Program
Team 10.Fraunhofer Center for Sustainable Energy
Systems (CSE) 11.Integrated Building and Construction
Solutions (IBACOS) 12.National Association of Home Builders
(NAHB) Research Center Industry Partnership for High Performing Homes
13.National Energy Leadership Corps (NELC)14.NorthernSTAR Energy Efficient Housing
Research Partnership Team 15.Partnership for Advanced Residential Retrofit
(PARR)
“These partnerships will research and deploy new technologies and demonstration projects, and
provide systems engineering, quality assurance, and outreach for retrofit projects throughout the
country.”
• A total of $30 million in grants, ranging from $500K to $2.5 million
• 18 month grant agreements; $20 million per year will also be made available for the partnerships for three potential one-year extensions
• Focuses Building America on existing vs. new homes
• Partnerships will be paired with Better Building sites for applied R&D applications
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Deutsche Bank Americas Foundation Energy Efficiency Database
Project Purpose: Create a database of100 New York City multifamily properties that will allow an evaluation of energy and cost savings due to the implementation of efficiency measures. Database will be used to inform bank underwriting standards.
“If you approach a lender now with a plan to spend
more to implement a green technology with the
idea you will save on operating costs, they are
skeptical and want to know what kind of proof
you have. If you could be armed with an assortment of data, it would inevitably help you get financing and
even increase your financing because your
bottom line would go up.” (New York Times, 6.1.10)
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HUD Title I Power Savers Loan Guarantees
• Covers loans for up to $25,000 of home improvements
• 90% insurance coverage for lenders; maximum of 10% of portfolio
• Creates effective loan loss reserve fund of 9% for qualified lenders
• Two year pilot launching in 2011
• Targeted at communities with retrofit initiatives; Better Building communities automatically eligible
• FHA is working with Ginnie Mae to develop secondary market options
http://www.hud.gov/offices/hsg/sfh/title/presentation.pdf
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State Energy Efficiency Action Network
SEE Action Network Goal:
“To help the nation achieve all cost‐effective energy efficiency by 2020 through assisting state and local
governments implement energy efficiency policies and programs.”
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BRIM Development Recommendations
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Recommended BRIM Development Action Steps
1. Agree on a framework for BRIM development investments and systematically catalogue current initiatives and investments (funders; feds; private).
2. Create a three-way partnership between USDOE , funders and market players to collaborate on market development investments.
3. Develop a network infrastructure to support collaboration and project execution on market investments over the long term.
4. Hold an annual BRIM Development conference.
54 • December 13, 2010 Retrofit Strategy Meeting•
Potential Investment System Features
• Database of key market development investments projects, with project profiles – on-line; searchable; links to data sources; staff; etc.
• Investment advisors by content area:Assessment of current portfolioAdvice on investment opportunitiesHow to tie the investments together
• Periodic stakeholder meetings (2 X Year?) to review portfolio and generate new ideas (SVN/Investors Circle format?)
• Connect to track at annual BRIM development conference
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How It Might Work in One Niche
Portfolio of National Projects
Local Innovation & Implementation
InvestorsInvestor Advisors
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Technical Assistance Infrastructure
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Summary of Key Points
1. USDOE is investing $20+ million in a national BRIM infrastructure
2. USDOE Technical Assistance Program (TAP) funding is temporary; most funding ends by CY 2012
3. The current TAP is heavily focused on managing transactions; design of a knowledge management system is not yet apparent
4. The process for quality control is not transparent
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Segmentation of TA Players
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Our Research Process
1. Develop database of potential providers (156)
2. Segment based on market taxonomy
3. Conduct secondary research (78)
4. Interview a representative sample (27)
5. Summarize key findings and research
See attachment file with one-page profiles of organizations: “Building Retrofit Technical Assistance Provider Inventory”
Sources:
•U.S. Department of Energy (DOE) Technical Assistance Provider (TAP) Network •Innovation Network for Communities (INC) database•DOE Energy Efficiency Partnership for Homes directory•GuideStar, national database of tax-exempt entities•Hoovers, national database of public traded companies•Capital IQ, national database of public and private companies•LexisNexis•Public literature scan, using targeted key word searches
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Define market landscape Identify and segment players Develop profiles and market investment recommendations
Framework for Segmenting TA PlayersTechnical Assistance Service Areas:
Retrofit Program Design
Customer Marketing/
Demand Stimulation
Workforce Training/
Preparation
Contractor/Auditor
Training/ Preparation
Building Energy
Technology Products
Retrofit Installation
& Operations
Building Testing/
Assessment/Certification
Financing Retrofit Program Manage-
ment
Job Standards/ Targeted Hiring &
Contracting
PACE OtherRetrofit Program Perform-
ance Evaluation/Monitoring
1 2 3 4 5 6 7 8 9 10 11 12 13
Building Type:
Residential Commercial/Industrial Institutional
Single-family Multi-family Less than 10k sq ft More than 10k sq ft Churches Hospitals Municipal Schools Universities
Organization Type:
For-profit Not-for-profit Government
Architecture/Engineering Firms Banks/Financial Institutions Contracting FIrms Energy Service Companies (ESCOS) Equipment & Building Supply
Companies Management Consulting Firms Other
501 (c)(3)/Civic Organization Bank/Financial Institutions Industry Trade Associations Management Consulting Firms Universities
Federal Government Agencies
Public Private Partnership
Public Private Partnership
61 • December 13, 2010 Retrofit Strategy Meeting•
Secondary Analysis Segmentation
Total 77 (100%)
For Profit25 (36%)
Non-Profit40(57%)
Government3 (4%)
By Entity
By Building
Type
By Technical
Assistance Category
Residential (multi family)84%
Residential (single family)77%
Commercial/industrial (more than 10k sq ft)63%
Institutional63%
Commercial/industrial (less than 10k sq ft)53%
Not specified 1%
Retrofit Program Design 47% Financing 41% Building Testing/Assessment/Certification 39% Retrofit Program Performance
Evaluation/Monitoring 34% Retrofit Program Management 30% Retrofit & Installation Operations 26% Contractor/Auditor Training/Preparation 24% Building Energy Technology Products 21% Customer Marketing/Demand Stimulation 21% Workforce Training/Preparation 10% Job Standards/Targeted Hiring & Contracting 7% PACE 4% Other
1%
By Sub-Entity
Management Consulting Firms 68%
Energy Service Companies (ESCOS) 16%
Architecture/Engineering Firms 8% Bank/Financial Institutions 5% Contracting FIrms 4% Other
4% Equipment & Building Supply Companies 0%
501 (c)(3)/Civic Organization 53%
Industry Trade Associations 38% Universities 5%
Federal government agencies 100%
Public Private Partnerships 100%
Building Type
TA Service Areas
Public/PrivatePartnership
2 (3%)
62 • December 13, 2010 Retrofit Strategy Meeting•
Secondary Analysis Profile List
Notes: * Represents DOE TAP Network Providers.
1. Affordable Comfort, Inc.2. Alliance to Save Energy3. American Council for an Energy-Efficient
Economy* 4. Apprise Inc5. Ballard Spahr*6. Blue Springs Energy7. Bright Power8. Building America Retrofit Alliance9. Build it Green10. Building Performance Institute11. Catalyst Financial Group, Inc*.12. Center for Climate Strategies*13. Center for Neighborhood Technology Energy14. Change to Win15. COWS (Center on Wisconsin Strategy)16. Clean Economy Development Center17. Clean Energy Advocates, Inc.18. Clean Energy Solutions, Inc.19. Clinton Climate Initiative20. Conservation Services Group21. Consortium for Advanced Residential Buildings 22. Consortium for Energy Efficiency23. Economic Development Research Group24. Efficiency Cities Network25. Efficiency First26. Emerald Cities Collaborative27. Energy Efficiency Finance Corporation*28. Energy Futures Group*29. Energy Programs Consortium*30. Energy Services Coalition*31. Enterprise Green Communities32. Environmental Finance Center*33. EP Systems Group*34. Fraunhofer Center for Sustainable Energy
Systems35. Green for All
36. Groom Energy37. HarcourtBrown, LLC38. ICF Incorporated* 39. ICLEI USA40. Institute for Building Efficiency (Johnson Controls)41. Institute for Market Transformation42. Integrated Building and Construction Solutions43. Honeywell44. Laborers' International Union of North America 45. Lawrence Berkeley National Lab*46. LI Green47. Living Cities48. Lockheed Martin*49. Midwest Energy Efficiency Alliance*50. National Association of State Energy Offices* 51. National Governors Association*52. National Renewable Energy Laboratory 53. Natural Resource Defense Council**54. Next Step Living Inc.55. Northcross, Hill, & Ach*56. Northeast Energy Efficiency Partnership*57. Northwest Energy Efficiency Alliance*58. Oak Ridge National Laboratory*59. Partnership for Working Families60. PSD Consulting (Performance Systems
Development)61. Pike Resarch62. Policy Link63. Public Technology Institute*64. Recurve65. Renewable Funding, LLC*66. Sentech* 67. Shorebank Enterprise Cascadia68. Southface69. Southwest Energy Efficiency Project*70. Stewards of Affordable Housing for the Future*71. Strategic Energy Innovations72. The Cadmus Group*
73. The DC Project74. The Jordan Institute75. University of Delaware Center
for Energy & Environmental Policy*
76. Urban Sustainability Directors Network
77. US Green Buildings Council78. Vermont Energy Investment
Corp*
63 • December 13, 2010 Retrofit Strategy Meeting•
Organization:
Clean Energy Solutions, Inc.
Year established:
2000
Staff size:
8 staff
Website:
www.cleanenergysol.comExpertise: • EE Financing / Utility Efficiency Incentives Pgrm. Design / Energy Perf. Contracting / Energy Engineering / Renewable Energy Technologies / Emissions Credit Trading / Combined Heat & Power, and Utility / Distribution System Interface / Community Mkting. Strategies / Program Evaluation / Customer Energy Education Curricula Design
TA service areas:• Retrofit Program Design• Financing• Retrofit Program Management• Retrofit Program Performance
Evaluation/Monitoring
Mission:To significantly reduce carbon footprints, electricity demand, and energy use across all residential and commercial/industrial sectors.
Key relationships:Programs, services and products:• Business planning • New market development • Complex program designs • Financial engineering • Mergers and acquisitions • Distributed energy and utility initiatives• Evaluation of proposals and business plans • Contract negotiations • Organization planning, job definitions,
candidate evaluations • Budget design and implementation
Residential (single-family)
Residential (multi-family)
Commercial/ Industrial (less than 10k sq ft)
Commercial/ Industrial
(more than 10k sq ft) Institutional
Not specified
X X X X X
Entity typeEntity
sub-typeGeographic
scope
For profit Management Consulting
National
PROFILE EXAMPLE
64 • December 13, 2010 Retrofit Strategy Meeting•
Direct Interviews (27)
Person Organization
David Bank Civic Ventures
Colin Bishop Clean Economy Development Center
Dana Bourland Enterprise Community Partners
Eric Bloom Pike Research
John Bracey Southface
Will Byrne DC Project
Eric Coffman Affordable Comfort
Steve Cowell Conservation Services Group
Cisco Devries Renewable Funding
Eric Dirnbach Change to Win
Merrian Fuller Lawrence Berkeley Lab
Karen Gajewski City of Philadelphia
David Gershon Empowerment Institute
Benjamin Goldstein USDOE
Jeremy Hayes Green for All
Ben Hecht Living Cities
James Irwin Efficiency Cities Network
Grace Kelly Southface
Jeffrey King Clean Economy Development Center
Person Organization
Molly Lunn USDOE
Amy Malik ICLEI
Dennis Murphey Kansas City
Julia Parzen Urban Sustainability Directors Network
Joel Rogers COWS
Chuck Schwarz Long Island Green
Arah Shuur Clinton Climate Initiative
Joel Simon CAEL
65 • December 13, 2010 Retrofit Strategy Meeting•
Observations
• Providers evenly split between non-profit and for-profit (48% -- 52%)
• For profits are overwhelmingly management consulting companies (70%)
• Vast majority receive some funding from federal government agencies
• The focus and capacity varies widely across the field
• Top 5 TA service areas are roughly the same: retrofit program design; financing; performance evaluation; program management
• About 35% of the players have emerged since 2000
• 59% have fewer than 50 employees
• Most say they are national in scope, but based on capacity, many in practice are regionally focused
66 • December 13, 2010 Retrofit Strategy Meeting•
Secondary Analysis Profile Summary
Regional12%
National88%
Geographic Scope Year EstablishedTBD11%
2000 - 201035%
1980 - 198915%
1990 - 199925%
Before 198014%
67 • December 13, 2010 Retrofit Strategy Meeting•
Secondary Analysis Profile Summary (Continued)
Staff
TBD23.00%
500+ on Staff5.00%
100 - 499 on Staff6.00%
50 - 99 on Staff6.00%
20 - 49 on Staff20.00%
5 - 9 on Staff12.00%
10 - 19 on Staff15.00%
1 - 4 on Staff12.00%
68 • December 13, 2010 Retrofit Strategy Meeting•
High Level Taxonomy of Players
Type ExamplesNational integrated service providers.
Conservation Services Group; Honeywell; ICF; Sentech; Vermont Energy Investment Corporation
Regional integrated service providers.
Center for Neighborhood Technology; Southface; Strategic Energy Innovations
National players with a focused content area.
Ballard Spahr; Partnership for Working Families; Renewable Funding
Regional players with a focused content area.
Environmental Finance Center Network (1 university per region – 10 total); Shorebank Enterprise Cascadia
National membership organizations and networks.
ACEEE, Emerald Cities; Energy Services Coalition; ICLEI; Urban Sustainability Directors Network
Regional membership organizations and networks.
Midwest Energy Efficiency Alliance; Northeast Energy Efficiency Partnership;Northwest Energy Efficiency Alliance;Southwest Energy Efficiency Project
National industry/trade associations.
Efficiency First; National Home Performance Council; Building Performance Institute; USGBC
69 • December 13, 2010 Retrofit Strategy Meeting•
USDOE Technical Assistance Program (TAP)
70 • December 13, 2010 Retrofit Strategy Meeting•
Better Buildings
EECBG & TAP
71 • December 13, 2010 Retrofit Strategy Meeting•
72 • December 13, 2010 Retrofit Strategy Meeting•
Technical Assistance Program (TAP) Overview
• $20+ million in funding over three years – focused on all 3,000+ EECBG recipients
• Three teams at USDOE: Headquarters Team State Energy Program (SEP) Team EECBG Team
• Technical Assistance Center Call Center On-line Customer Service Center Solutions Center Web Site
• Provider Network Four teams Prime contractors for each team Lead sub-primes 200 total providers
73 • December 13, 2010 Retrofit Strategy Meeting•
TAC
Organization: Provider Network
Regional Coordinators
NASEO ICF
Program Design and
Implmtn.
Vermont Energy
Investment Corp.
Performance Contracting
ICF
Financial Mechanism
s
Cadmus CCS
DOE Labs
NREL, ORNL, LBNL, PNNL
SEP Team EECBG Team
~50 providers~200 providers
DOE HQ TA TEAM
Michaela Martin, Lead ORNL3 additional staff
TBD, Lead3 additional staff
Provider Network Working Group
TAP Structure
Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
74 • December 13, 2010 Retrofit Strategy Meeting•
Provider Network Resources
State and Local Capacity Building
• Trainings• Workshops• Peer-to-peer matching
Technical • Renewable energy siting and development• Review of technical specs for RFPs• Strategic planning, energy management, and conservation strategies• Green building technologies• Building codes
Program Design and Implementation
• Policy and program development• Coordinating rate-payer funded dollars with ARRA projects and programs• Sustainable community and building design• State and regional EE and RE assessments and planning• EE and RE portfolio program design elements
Financial Program design support and guidance on financing mechanisms such as: • Revolving loan funds (RLFs)• Property-assessed clean energy (PACE)• Loan loss reserves and enhanced credit mechanisms
Performance Contracting
• Designing and implementing a performance contract • Leveraging private investment• Reducing institutional barriers• Tracking and comparing programs
Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
75 • December 13, 2010 Retrofit Strategy Meeting•
TAP Providers
DOE National Laboratories: National Renewable Energy Lab, Lawrence Berkeley National Laboratory, Oak Ridge National Laboratory • Alliance to Save Energy • American Council for an Energy-Efficient Economy • American Public Power Association • Ballard Spahr, LLP • Boise State Environmental Finance Center • Catalyst Financial Group • Center for Climate Strategies, Inc. • E. P. System Group • Energy Efficiency Finance Corporation • Energy Futures Group • Energy Programs Consortium • Energy Services Coalition • Great Lakes Environmental Finance Center • HarcourtBrown • ICF International • Midwest Energy Efficiency Alliance • National Association of State Energy Officials • National Association of Counties • National Governors Association • National Resources Defense Council • New England Environmental Finance Center • New Mexico Tech Environmental Finance Center • Northcross, Hill & Ach • Northeast Energy Efficiency Partnerships • Northwest Energy Efficiency Alliance • Public Technology Institute • Renewable Funding • Sentech, Inc. • Southeast Energy Efficiency Alliance • Southwest Energy Efficiency Project • Stewards of Affordable Housing for the Future • Syracuse Environmental Finance Center • Tensleep Advisory • The Cadmus Group, Inc. • University of Delaware Center for Energy and Environmental Policy • University of Louisville Environmental Finance Center • University of Maryland Environmental Finance Center • University of North Carolina Environmental Finance Center • University of North Carolina School of Government • Vermont Energy Investment Corporation
Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010 Bold = included in our inventory
76 • December 13, 2010 Retrofit Strategy Meeting•
Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
77 • December 13, 2010 Retrofit Strategy Meeting•
TA Request Process Flow
G R A N T E E
Request Touch Points
Grantees Project Officers (Acct Reps) Regional Coordinators TA Provider Network
Rec
omm
enda
tion
s
Types of Resources
• One-on-One• Solution Center• Workshops• Peer Matching
NE
RV
E C
EN
TE
RT
R I
A G
E
B A S I C
TA Assignment
S T A N D A R D
Specialized
HQ EXCEPTION
Feedback
Source: USDOE TAP PowerPoint, “Technical Assistance Overview”, July 7, 2010
78 • December 13, 2010 Retrofit Strategy Meeting•
Better Building TAP Structure
Collaborative Working Groups:• Financing• Contractor recruitment and workforce
development• Driving demand/marketing and outreach• Data tracking and collection
Infrastructure:• Conference calls and webinars• In-person meetings• Collaborative working group directory• On-line collaborative web site• Sub-groups
Affinity Groups:• Commercial & Gov’t Buildings• Multi-family and rental properties• Historic buildings• Green and healthy homes• Deep retrofits• New audit tools• New finance tools• New workforce standards• Working with retail partners
Infrastructure:• Kick-off call or workshop• Directory of interested grantees• On-line collaborative web site• Targeted sessions at BB workshops• Active connecting to other federal
agencies or initiatives
Contractor Support and Access to TAP Resources
79 • December 13, 2010 Retrofit Strategy Meeting•
Funding and Program Status
• Approximately half of the funds have been disbursed to date; the majority of the remainder will be spent by the end of CY 2011
• USDOE is beginning to plan for the post-TAP TA structure
• It is unlikely that the EECBG will be refunded at a significant level
• Pre-EECBG TA funding was modest:• $3 million through NREL• $200K -- $500K through other sources
80 • December 13, 2010 Retrofit Strategy Meeting•
TA Recommendations
1. Build on the base created by the USDOE TAP initiative.
2. Start now to plan for a post-ARRA TA infrastructure.
3. Make sure that structure has a “learning system” that rapidly disseminates knowledge across players and markets; and use this system to inform market development investments.
4. Develop robust feedback loops and a continuous improvement process.
81 • December 13, 2010 Retrofit Strategy Meeting•
Collaboration Infrastructure
82 • December 13, 2010 Retrofit Strategy Meeting•
Collaboration is At An Early Stage
• There is a broad range of players with interests in BRIM development – governments; utilities; NGOs; private enterprises; foundations; organized labor; education; etc.
• Because BRIM is at an early stage of development, the structures for strategic collaboration between players are not well developed. (Although there are some membership organizations that now represent significant cross sections of the industry.)
• As a result, there is not yet strong strategic alignment across key stakeholders on the strategies for development of the market. There are many different players doing many different innovative things without a “grand design” to maximize alignment with minimal structure.
83 • December 13, 2010 Retrofit Strategy Meeting•
Three Promising Collaboration Opportunities
1. Formalize collaboration across funders through a Working Group structure.
2. Explore the best way to organize market stakeholders in ways that can align strategy for market development. (e.g. trade associations; coalitions; intermediaries; Federal Advisory Committees.)
3. Develop MOUs or other structures for collaboration between USDOE and both the Funders Working Group and market stakeholders.
84 • December 13, 2010 Retrofit Strategy Meeting•
Collaboration on Market Development
Funders Working Group
USDOE & EPA
Market Stakeholders
85 • December 13, 2010 Retrofit Strategy Meeting•
Next Steps
86 • December 13, 2010 Retrofit Strategy Meeting•
Some Practical Next Steps on BRIM Development
1. Identify which funders are interested in working on this issue in a structured way
2. Conduct the next level of inventory on market-building projects:• List of projects by relevant categories• Develop standard profile for each project• Develop database format for sharing
3. Conduct a high level assessment of the strategy within each niche, using “investment advisors” where appropriate
4. Meet within 3 months to review results and plan next steps
87 • December 13, 2010 Retrofit Strategy Meeting•
Some Practical Next Steps on TA Structure
1. Identify key players to provide input to USDOE post-ARRA TA planning
2. Develop a Funders Working Group assessment of current and planned foundation investments in TA capacity
3. Hold a meeting in the February time frame with DOE; funders; and key field networks on future TA infrastructure
88 • December 13, 2010 Retrofit Strategy Meeting•
Some Practical Next Steps on Collaboration
1. Formalize a Funders BRIM Working Group:• Members• Mission• Facilitation and analysis support• Meeting schedule• Priorities
2. Convene a meeting of key market stakeholders to explore how best to organize the field for collaborative interaction (after next level of market building investments has been completed) and to review priorities for BRIM development
89 • December 13, 2010 Retrofit Strategy Meeting•
DISCUSSION
90 • December 13, 2010 Retrofit Strategy Meeting•
Supplemental Materials
91 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes
92 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on Market Building
Serious Work Takes Decades. “If we are serious about building a real market, it will take us over a decade to do it. And much of the impact of our investment won’t show up for a long time. We need to be patient and we need to ratchet up the level of investment. You either believe we are building the post-carbon economy or not. And if you do, you have to be in it for the long haul.”
Current Players Won’t Drive the Market. “The market doesn’t exist in the way that many organizations want it to exist. Many of the players involved now are not the ones that will actually drive the private market.”
Lack of Focus on Market Development. “No one is really worrying about the building of market infrastructure and operating systems to support market development. We have to define the R&D investments we need to make to build this market. No one has done that yet.”
The Market is At A Very Early Stage. “Everybody is talking about the retrofit market, but very few people are actually doing anything about it. The cities are all at an extremely early stage of development. This is really a “pre-nascent” field. Even the mature players are very early in their development. Unfortunately, much of the thinking is just an extension of the old subsidized weatherization program.”
Market Failure. “It is folly to say that this market is developing the way it should. What we have on our hands is a fundamental market failure. There is no evidence that it is developing the way it should.”
Need Focus on the Private Players. “Most of the TA is focused on these public and NGO players who happen to be holding the baton at the beginning of this market. Eventually they will have to pass it on to the private market players – entrepreneurs; banks; contractors; etc. Even while $500 million for Retrofit Ramp Ups seems like a lot of money, it is a drop in the bucket in terms of building a market and not enough to get private sector players to take a risk.”
Not Enough Private Sector Engagement. The private players are largely absent from the dialogue about market building. The people doing the talking about it will not be the ones making the private risk investments.
93 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on Market Building
Lack of Performance Data. “A major barrier is the lack of post-retrofit performance data. Particularly in the commercial industry where building owners are particularly concerned about the results. Without hard evidence that the energy savings are real, it will be hard to see a huge uptick in building retrofits.”
Standardized Data. “We need standardized software and data management systems that allow for the standardization of retrofits. This will help standardize underwriting.”
Access to Utility Data. “It is impossible for us to get utility data. We are all afraid of the local power company. We need some national agreement and standards on utility data sharing and integration with property tax data bases.”
No Data to Drive Appraisals. “Green buildings aren’t appraised at a higher value because the datasets aren’t available for banks and appraisal institutions.”
Data Standards. “We need datasets that demonstrate the success of retrofits – with pre and post data. And we need to track how this affects sale values. TA on the data side is critical. And we need some national data standards so these data sets are comparable.”
Standardized Labeling. “To convey value and change underwriting standards, we need standardized building labeling that measures building energy efficiency – what everyone refers to as the ‘MPG’ for energy. It would be good if this was done nationally, but can also be done in local markets, as long as it is uniform.”
No Link to Underwriting. “We believe the retrofit savings are real that they improve the value of our homes; but the capital markets don’t believe it, and the regulators don’t believe it. Underwriting standards have no way of recognizing the differences in energy performance of homes.”
Universal Access to Utility Data. “We need consistent and updated maps of energy consumption by every parcel of property in the country. This would require utility data sharing protocols; and standardized database tools to integrate utility data with tax base data to get energy use per square foot.”
94 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on Market Building
Large C/I Has Some Momentum. “Large corporations have large corporate campuses, big building portfolios that are better suited for payback on retrofit measures. Have more capital available for this work and helps boost public image. ESCO’s look for large buildings, so this part of the market may already have more momentum”
Small C/I Opportunity. “There has been a lot of investment in the residential retrofit market, but almost none in the small-medium commercial market. And this is a niche with great opportunities for energy saving.”
Small C/I Opportunity. “There appears to be a large opportunity/need for Light Commercial expertise and capacity (3,000-10,000 sf commercial buildings. These projects are too small for the large firms. We need to train the residential players to move up into this market. There are a lot of low/no cost high return strategies that can be implemented.”
Consumer Communication. “We really need a more coordinated way of going after the consumer. They get a lot of individual product marketing making claims about performance that are not in line with what the building science community knows. We need to communicate the ‘whole house’ approach more effectively.”
Marketing for Contractors. “We need marketing and communications resources for contractors. We train them in the technical skills, but then they don’t know how to go out and generate demand.”
Generating Demand. “There is a huge gap in knowledge about how to generate demand for retrofits. We have very little information about what works and doesn’t work. We need market research; methods testing; consumer segmentation; focus groups; etc. to understand this market.”
“Value Proposition is Not Compelling. “People don’t want the retrofit product in it current form. The value proposition is too abstract and service delivery is too fragmented. So traditional marketing is not enough.”
95 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on Market Building
Three Primary Paths. “You need to enter this market from several different doors. And to me, the three primary ones are: 1) remove the upfront capital availability barrier; 2) have standardized systems that create consumer confidence in the transactions; and 3) create data that demonstrates value and brings private capital to the market.”
“Standards vs. Open Competition. You have to be clear about where there is a need to develop some kind of “standard” for the industry and where you want to just let market competition drive the development of products and services. For instance, in terms of modeling software, that niche in the market is getting pretty well served by multiple vendors.”
States are Also Major Independent Players. “Washington State Referendum 52 would dedicate $500 million to retrofit every school in the state with a 3:1 private capital match. If it happens, this will instantly be the largest retrofit market in the country. This is a big opportunity to do market infrastructure development.”
Need DOE and EPA Alignment. “Also, we need to get DOE and EPA on the same page. They are entering the same market in an uncoordinated way.”
Need DOE and EPA Alignment. “It would be really useful to know what is going on in EPA related to building energy efficiency. We just don’t have the bandwidth to build relationships with them.”
Need for Standards in Several Areas. “Overall, the market needs standards in many areas – building performance metrics; best practices; definitions; etc. As an example, as we have moved into retro-commissioning, we have found that there is very little standardization of practices in that niche.”
96 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on TA
USDOE Improving. “DOE, in particular, has improved. It is in different position now than it was 3 years ago. Previously, the DOE never had the resources to facilitate this kind of knowledge transfer. Now it has more resources, trying to be more aggressive in information sharing of R&D.”
Different Motivations and Approaches. “There are a lot of different TA providers. Many are very good. Some suffer from tunnel vision. Each sells their own approach to developing programs and have a fair amount of difference in goals. They have very different motivations -- Climate change; Job creation; Social justice; Community building. There is a need for a consistent understanding of the goals and how different goals lead to different consulting and advice.”
Need a Long-Term Strategy. “I think we have a lot of the TA pieces in place now. The problem is that this is all short term. This money won’t get re-appropriated. There are networks in place for some parts of this market that will survive the loss of funding (such as NASEO), but there is no real network to connect municipalities and cities together. The players in this space -- like ICLEI; Green for All; Emerald Cities; ISC – are only working with a small subset of the players. It would be great if we could use this opportunity of everyone having an excuse to be working together to do some creative thinking about a sustainable infrastructure after the funding disappears.”
TAP Program Making Progress. “As one of the DOE TA providers, I believe the DOE TA program is basically a good concept and design that has had some “bumps in the road” in terms of its launch. Primarily related to coordination, since they combined several RFP respondents into a single award. The concept is a good one. They are continually tinkering with it. It suffered at the start from some disconnects but is improving.“
Need Long Term Strategy. “We don’t know how this will live on after ARRA funding ends. It has been really valuable for everyone to get to know each other and work together. I think we are building something – a community of practice – that will stay connected after the program ends.”
97 • December 13, 2010 Retrofit Strategy Meeting•
Selected Interview Quotes on TA
Lack of System for Coordination. “There is a need for a central location / hub for coordination. For example, a “clearinghouse” for all information related to the financing of retrofits. There needs to be better quality and consistency in the information being disseminated. TAP has a specific charter of quickly providing support for providers. What is lacking is a more comprehensive and robust center of information.”
Connecting Local Learning. “There is innovation in the aspect of finance happening in many different places (e.g. Portland, Long Island). There is a need to aggregate these innovations and disseminate best practices.”
Lack of Depth and an Integrated View. “A lot of people talk about doing some form of TA, but the vast majority of it, in our experience, is lacking in content depth. This is a new and rapidly changing field. There are very few people who have broad experience and can look at the market in a holistic way. Most people are very focused on a narrow content area.”
Lack of Coordination. “In general, the intellectual resources exist, but they lack coordination. There are people doing great work, but how are others accessing this information and knowledge?”
Overbuilding Capacity. “I am concerned that we are building a bunch of TA capacity for a market that does not yet exist. If the market doesn’t emerge, we will have a lot of “once bitten” folks who will never go back into the market. No one right does retrofits as a full time job. There isn’t enough volume.”
Confusion About What Works. “There is rampant confusion in what works and what doesn’t work – at both the consumer level and the program level. We need one-stop shops that can provide trusted information to consumers. The same is true for program implementer who need some way to figure out what works and what doesn’t at their level.”
98 • December 13, 2010 Retrofit Strategy Meeting•
October 21, 2010 Meeting of Better Building Grantees
on Collaboration Opportunities
99 • December 13, 2010 Retrofit Strategy Meeting•
October 21 Better Building Meeting
• Prompted by interest in collaboration across sites on system development
• 19 sites participated in a one-day meeting; detailed interviews done with each site in advance of the meeting
• Significant time spent sharing specifications on IT system RFPs
• Multiple opportunities for cross-site collaboration identified – well aligned with USDOE Better Building Affinity Groups and Collaborative Working Groups
• Some interest in post-meeting follow-up, but very limited responses
• Participants confirmed many of the priorities recommended here for market development
100 • December 13, 2010 Retrofit Strategy Meeting•
Spectrum of Collaboration Opportunities Identified
Type of Opportunity
Description
Information Sharing Sharing of detailed information that can inform peers decision making on program element development and program implementation. Examples include RFP text; lists of vendors; real time information on who is bidding on what.
Peer Learning Networks
Networks of peers who agree to engage in learning with each other (through on-line interaction; conference calls; or in-person meetings) on specific content issues. (Linked to USDOE Affinity Group process.)
Product Sharing Making products developed or paid for by one implementer available for use by others.
Joint Program Development
Issuing joint RFPs for program element development (e.g. IT systems; marketing materials; etc.)
Standards Development
Recommending standards and practices for program elements that should be common across implementation sites.
101 • December 13, 2010 Retrofit Strategy Meeting•
Common Content Area Concerns
Information Technology•Customer interface•Contractor interface•Financing data•USDOE data requirements•Program administration•On-line energy audits & energy modeling•Utility Data
Marketing•Market research•Message & materials•Outreach to customers •Social media & websites
Finance•Management of/coordination with rebates & subsidies •Developing new finance vehicles
• Loan Loss Reserve Funds• Revolving Loan Programs• Interest Rate Reduction• Subordinate PACE
•Financial institution relationships • Banks• CDFIs• Government Agencies• ESCOs
•Underwriting standards
Workforce Development•Integration between workforce development training providers and contractors•Skill and occupational classification definition•Demand forecasting•Workforce and training vendor management
Program Management•RFP content development•RFP process•QA/QC•Measurement & reporting•Stakeholder engagement•Strategic partner management
Energy Services Contractors•Competence & performance standards •Qualifications processes
• Job quality verification processes•Contractor referral policy/process
102 • December 13, 2010 Retrofit Strategy Meeting•
Opportunity Matrix
Collaboration Opportunity
Content Areas
IT Systems Marketing Finance Workforce Program Implementation
Energy Services
Contractors
Information Sharing
Peer Learning Networks
Product Sharing
Joint Program Element
Development
Standards Development