Local Energy Alliance Program (LEAP)

Local Energy Alliance Program (LEAP)

City Council Vision Statement

“Charlottesville citizens live in a

community with a vibrant urban forest, tree-lined streets, and lush green neighborhoods….

We have clean air and water, we emphasize recycling and reuse, and we minimize stormwater runoff.

Our homes and buildings are sustainably designed and energy efficient.”

Charlottesville/Albemarle County Emissions (2000 Baseline of eCO2)

Municipal3%

Agriculture/Other3%

Waste1%

Transportation29%

Industrial1%

Commercial 20%

Residential43%

2006 – City signed US Mayors Climate Agreement

2008 – County signed Cool Counties Agreement

What Can Government Do?

$500,000 competitive grant from the Southeast Energy Efficiency Alliance to design a community-based energy efficiency program or “Local Energy Alliance”

• 20-40% efficiency gain/structure• 30-50% market penetration

(get to scale)• 5-7 year performance period• Public-private partnership • Self-sustaining approach• Phase in alternative/renewable

energy• Create jobs, create the market• Make it a replicable model

The SEEA Proposal

Our Mission

We seek to lead the effort in our local community to conserve water and energy We seek to lead the effort in our local community to conserve water and energy

in buildings in order to promote cost savings, job creation, sustainability, in buildings in order to promote cost savings, job creation, sustainability,

local economic development, and environmental stewardship. local economic development, and environmental stewardship.

A Public-Private Partnership

The Alliance Concept – Who Are the Stakeholders?

• Local, State, and Federal Government• Electric, Gas, and Water Utilities• Local Contractors, Realtors, Home Inspectors• Energy Efficiency + Renewable Companies• Retail Business Partners• Area Nonprofits• Lending Institutions

LEAP in our community…

• Energy and water efficiency program provider for local government

• Financing source for energy and water related improvements

• Standards champion for property owners (require BPI certification for auditors, perform quality assurance and M&V for the program)

• Workforce development engine to train and grow the performance contracting industry through our partnership with local community college

• Dominion Power partner – SmartGrid technology for energy management and verification of efficiency gains

• Aggregator of RECs, white tags, and carbon offsets of member community

Core Value Propositions

For CustomersWe want you to implement the sensible energy improvements that will save you money. We will provide the delivery system, financing and quality management to make it safe to invest, to make sure it works and that it pays for itself.

Core Value Propositions

For CustomersWe want you to implement the sensible energy improvements that will save you money. We will provide the delivery system, financing and quality management to make it safe to invest, to make sure it works and that it pays for itself.

For Contractors and Trade PartnersWe want you to get certified to do the energy audits well, to guarantee your work, and in return, we will bring you motivated customers that have prearranged financing.

Core Value Propositions

For CustomersWe want you to implement the sensible energy improvements that will save you money. We will provide the delivery system, financing and quality management to make it safe to invest, to make sure it works and that it pays for itself.

For Contractors and Trade PartnersWe want you to get certified to do the energy audits well, to guarantee your work, and in return, we will bring you motivated customers that have prearranged financing.

For Lenders & Financial Partners We want you to make a market in our community by making

low interest energy loans, enjoy a solid return, and we will take much of the risk off the table.

Homeowner perceptions

Tracking Energy Use

Homeowner perceptions

Very poorefficiency

Poorefficiency

Don’tknow

Somewhatefficient

Veryefficient

Homeowner perceptions

Less than1 year

1 – 5 years

5 – 10years

11 – 20years

20 yearsor older

What do we know?

• How many MPG does your car get?• How many minutes do you get with your

cell phone plan?• What is your blood pressure?

What about your home energy use? Do youknow you know how good or bad – how efficient it is?

Ave Utility Bill $2400/year

Coming from DOE

Coming from Dominion

Home Performance Contracting

• Sustainable: Jobs in Home Performance do not require endless subsidies.

• Leveraged: Government and utility subsidies stimulate private sector investment through incentives.

• Market-Based: Leverages business as the engine to achieve rapid growth.

A market-based whole-house approach to retrofit existing homes for energy, health, and comfort.

Home Performance with ENERGY STAR

• Recognized brand• Strong standards and certifications• Tie in to future legislation, federal grants,

tax credits• Best practices and mistakes to learn from

Home Performance w/ ENERGY STAR

Home Performance w/ ENERGY STAR

Program Contacts:www.energystar.gov/homeperformance

Patricia PlymptonNavigant Consulting, IncOn behalf of U.S. Department of Energypatricia.plympton@navigantconsulting.com

Chandler von SchraderU.S. Environmental Protection AgencyVonschrader.chandler@epa.gov

Home Performance with ENERGY STAR Program ActivityJuly 2009

HPwES Programs: Existing Launching Exploring

Elements of an HPwES Job

• Audit• Solution

• Retrofit

• Commissioning• Quality Assurance

The Whole House Approach

Building Load - Stop Energy

Leaks - Improvement:

20% - 40%

Delivery- Fix Leaky

Ducts-

Improvement:

30% - 50%

Behavior - Set Your

Stat -

Improvement: 5% - 10%

Equipment - Efficiency /

Size - Improvement: 10% - 15%

Whole House vs. Products SavingsWhole House vs. Products Savings Whole House Solution:Whole House Solution: 30% - 50%30% - 50% (Ducts, Insulation, Behavior, 40K BTU 90% Furnace)(Ducts, Insulation, Behavior, 40K BTU 90% Furnace)

High Efficiency Furnace:High Efficiency Furnace: 10% - 15%10% - 15% (100K BTU 96% Furnace)(100K BTU 96% Furnace)

Performance - Efficiency - Health - Comfort

Loading Order & Loan Tiers

• Insulation• Air & Duct

Sealing• Lighting• Appliances• Water

Conservation• Plug Loads

Fundamentals plus:

• Heating• Air

Conditioning• Duct

Reconfiguration

• Solar Thermal• Water Heating

Fundamentals plus:

• Solar PV• Geothermal• Wind

Tier 1< $7500 loan

Tier 2< $25,000 loan

Tier 3< $50,000 loan

Fundamentals Major Systems Renewables

Local Opportunity

0

2000

4000

6000

8000

10000

12000

Nu

mb

er o

f H

om

es

<1939 1940-1949

1950-1959

1960-1969

1970-1979

1980-1989

1990-1999

2000-2004

>2005

Age of Residential Building Stock

Albemarle County

Charlottesville

Combined

Number of homes built <1970: 21,447 (no insulation standards in code)

Residential – Home Values

Equity Opportunity

Charlottesville Mortgage: 5086 No mortgage: 2754 Households >$75,000

24%

Albemarle Mortgage: 17,214 No mortgage: 6,616 Households >$75,000

42%

8%

4%3%

0%1%2%3%4%5%6%7%8%9%

Insulation High Efficiency Furnace Solar Electric

Annu

al R

ate

of R

etur

nCost Effectiveness

Labo

r as

% o

f Pro

ject

Cos

tJob Impacts

Projected Costs for New Power Generation cents/kWh

Energy Efficiency Advantage

The Education Challenge

Install energy efficient windows

Higher efficiency heating or cooling

Change habits at home

Install solar panels or wind turbines

Install more insulation

Don’t know

Install a programmable thermostat

Install high efficiency water heater

Get a professional energy audit

Use cfl’s or efficient halogens

Purchase Energy Star appliance

The Good News

The Great News

Cynthia Adams, LEED APExecutive Director LEAP

cynthia@leap-va.orgwww.leap-va.org