City-Scale Retrofit Programs Satya Rhodes-Conway COWS June 18, 2009 COWS “Milk for the Movement”  Research center at UW Madison  “Think-and-do tank” for high-road economic development  Good jobs and clean energy.

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Transcript City-Scale Retrofit Programs Satya Rhodes-Conway COWS June 18, 2009 COWS “Milk for the Movement”  Research center at UW Madison  “Think-and-do tank” for high-road economic development  Good jobs and clean energy.

City-Scale Retrofit Programs

Satya Rhodes-Conway COWS June 18, 2009

COWS

“Milk for the Movement”  Research center at UW Madison  “Think-and-do tank” for high-road economic development  Good jobs and clean energy

The Problem(s)

       High energy use and bills GHG emissions Inefficient buildings Cost of improvements Hard to get and pay back a loan Unemployment Dead-end jobs

    Buildings cause: 38.9% of U.S. energy use 38% of U.S. CO2 emissions Low-income households spend 14% of their income on energy, compared with 3.5% by other American households

The Solution: Energy Efficiency Retrofits

        Measures like: air sealing insulation lighting and appliance upgrades Relatively low-cost Reduce energy bills Cost-effective GHG reduction Can provide good, entry level jobs

Pete Davis

Costs and Savings

from 10-year payback measures in Milwaukee, WI Rental Owner Occ*

Total # Units Avg. Cost

126,793 83,052

209,845

$1,278 $911

$1,158 Total Cost

$162.0M

$95.8M

$243.1M

Avg. unit annual savings Total annual savings

$482 $251

$397

$61.1M

$22.2M

$83.3M

*Units with most need for retrofits: owner occupied built before 1960 and all rental properties

Who Does this?

   Energy Service Corporations (ESCOs) and/or large contractors (large industrial or institutional buildings) Weatherization Assistance Program (WAP) contractors (low-income residential properties) small contractors (private residential or commercial properties)

Sammy Avedon, Town of Babylon

Why isn’t this enough?

      Funding available only to: income-eligible individuals individuals with sufficient up front capital to pay for the work Rely on inefficient referral systems or trust customers to come to them Residential or commercial buildings, but not both Variable job quality and advancement opportunities

Sammy Avedon, Town of Babylon

City-Scale Retrofit Programs

Four key components:

  Capture the financial savings from retrofits and use them to pay back the loan Any jobs created are good jobs and provide training for a career pathway   Achieve economies of scale and consider including both residential and commercial buildings Target the program to low-income communities, both in terms of where the work is done and who is hired to do it

City-Scale Retrofit Programs

 n.

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

Issues to Address

m.

Financing Establishing the Coordinating Entity(ies) Technology and Materials Job Training Community Access to Jobs Working with Unions Ensuring Job Quality Ensuring Retrofit Quality Targeting by Geography and Building Type Marketing Customer Service/Service Delivery Certification of Savings Secure Cost-Recovery Evaluation and Improvement

      

How to set up a program: Key Areas

 Stakeholders Involve as many as possible  Policy Do you need changes to state or local law?

 Program Structure Who manages?

 Targeting and Marketing “One stop shop” Quality Control and Evaluation Financing and Repayment Labor Standards and Workforce Development

Financial Structure

A revolving loan fund

with on-bill repayment

that follows the property or the meter

   Revolving loans make funding available into the future – long after ARRA is gone and the grants are spent Allows convenient payment from energy savings Not a personal loan – a service to improve the property

Financing

 Sources:     Energy Efficiency And Conservation Block Grants  20% can be used for loan funds Qualified Energy Conservation Bonds Municipal bonds State public benefits funds  Don’t forget about rebates and tax incentives

Repayment

    Utility Bill Portland, Michigan  Municipal Services Bill Milwaukee  Benefit or Local Improvement Assessment Districts Babylon, Berkeley, Boulder

Labor Standards

 A green job is a good job:        Higher than poverty wages Paid sick leave Health care benefits Job security Safe working conditions Organizing rights Pathways to advancement Alliance for Affordable Energy

Workforce Development

   Don’t reinvent the training wheel  Build on established training pathways in state and local workforce systems Apprenticeship is a well established pathway to a good job Targeted hiring from disadvantaged communities

Wisconsin Regional Training Partnership

     Entry Level Construction Skills (ELCS)-Weatherization Certificate Initial Assessment and Community Partners Employer-Driven Training Leveraging Resources for Training Mentoring and Worker Support

More Information:

 Efficiency Cities Network  www.efficiencycities.us

[email protected]

 Satya Rhodes-Conway  [email protected]

 608 262 5387 Available at http://cows.org/pdf/rp-retrofit.pdf

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