Energy Upgrade California™ Home Upgrade

March 2014

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Who is The Energy Network?

The Energy Network: • A local government organization • Created by the California Public Utilities Commission • Provides resources and assistance to homeowners, businesses

and public agencies planning energy efficiency upgrades• Serving Southern California

Services Include:• Community education and outreach• Rebate and incentive offerings• Attractive financing terms • Tools to help identify contractors with

energy efficiency training• Other resources that help homeowners

take the next step toward saving energy

The Energy Network Service Area

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Statewide Program, Local Implementation

Home Upgrade is a statewide program that provides rebates and incentives for installing energy efficiency measures.

• Install upgrades from a menu of measures to earn points

• Easy-to-calculate point system translates into big savings

Today’s presentation discusses The Energy Network’s local implementation of this program.

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Why participate?

• Easy-to-use point system offers $10 per point

• Earn up to $3,000 in rebates and incentives

• Does not require energy modeling

• Contractors will receive a $150 Combustion Safety Test Incentive for each completed project to help offset testing costs

• New online tools and application

• Account Managers offer help at every step

• Financing options

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Incentive Options

Homeowners can decide (or choose) who receives the incentive:• Contractor

• Incentives to contractors are considered taxable income so contractors must submit a W-9

• The invoice must show the Home Upgrade credit as a line item

• Homeowner • No W-9 required because incentives to Homeowners are not

considered taxable income

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In order for homeowners to qualify for The Energy Network’s offering of Home Upgrade, they must meet ALL of the following requirements:

• Located in Los Angeles County

• Single-family detached home

• Customers of both Southern California Edison (SCE) and Southern California Gas Company (SoCalGas®)

• The homeowner must not have participated previously in a similar incentive through SCE/SoCalGas at this service address.

If your client does not meet these requirements, they may still qualify for the Home Upgrade rebate program offered by SCE or SoCalGas.

Homeowner Eligibility

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Requirement & Conditions

• Total of three or more measures• Base measures: Install a minimum of one Base measure• Flex measures: No minimum, but Base + Flex measures must total three

or more • HVAC Requirement: If air conditioner or heater are replaced, must improve

ducts to ensure energy efficiency• Combustion Safety Test: Complete Combustion Appliance Safety (CAS) tests

and Combustion Appliance Zone (CAZ) test before the project begins and after the project is finished

• Thermostatic Control Valves (TCVs): Install on all showerheads• Carbon Monoxide Monitors: A minimum of one on each floor in the home

Base Flex CASCAZ TCVs CO

Monitor

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Qualifying MeasuresCategory Upgrade Measure Point Value

Base Measures(Install a minimum of one)

Duct Sealing 25

Duct Replacement 65

Whole House Air Sealing ≥ 15% leakage reduction 25

Whole House Air Sealing ≥ 30% leakage reduction 45

Attic Insulation & Attic Plane Sealing 55

Base Measure Bonus2nd Base Measure 15

3rd Base Measure 20

Flex Measures(No minimum, but Base + Flex

measures must total three or more)

Wall Insulation 50

Floor Insulation 55

Duct Insulation 40

Furnace 60

Air Conditioner 65

Gas Storage Water Heater EF ≥ 0.67 35

Gas On-Demand Water Heater 90

Electric Storage Water Heater 40

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Base Measures

Point Value Technical Specifications Required Photo Documentation

Duct Sealing 25 Seal to ≤ 10% for existing systems

• Duct total leakage test-out manometer photo at CFM 25

• HERS CF-4R will be accepted if it states total duct leakage is ≤ 10%Duct Replacement 65 Seal to ≤ 6% for replacement

ducts

Whole House Air Sealing

25 ≥ 15% leakage reduction from vintage table defaults

• If default is not used, blower door test-in manometer photo at CFM 50 (test-in not allowed for homes built before 1978)

• Blower door test-out manometer photo at CFM 50

45 ≥ 30% leakage reduction from vintage table defaults

Attic Insulation & Attic Plane Sealing 55 Insulation ≥ R-38

Install a minimum of one Base Measure and include photos.

Flex CASCAZ TCVs CO

MonitorBase

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Duct Sealing and Replacement

Point Value Technical Specifications Required Photo Documentation

Duct Sealing 25 Seal to ≤ 10% for existing systems • Duct total leakage test-out manometer photo at CFM 25

• HERS CF-4R will be accepted if it states total duct leakage is ≤ 10%Duct Replacement 65 Seal to ≤ 6% for replacement ducts

Flex CASCAZ TCVs CO

MonitorBase

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Whole House Air Sealing Defaults

Year of Construction Default Test-in Requirements Eligibility Pre- 1978 8.0 SLA None Per BPI guidelines

1978 to 2001 4.9 SLA Allowed in place of default

No air sealing allowed when test-in is ≤ 0.35 ACHn.

2002 and later No default allowed Required No air sealing allowed when test-in is ≤ 0.35 ACHn.

All BPI standards for recommending or requiring mechanical ventilation are to be applied.

Point Value Technical Specifications Photos

Whole House Air Sealing

25≥ 15% leakage reduction from the program defaults or test-in CFM 50 results

• If default is not used, blower door test-in manometer photo at CFM 50 (test-in not allowed for homes built before 1978)

• Blower door test-out manometer photo at CFM 50

45≥ 30% leakage reduction from the program defaults or test-in CFM 50 results

Whole House Air Sealing Pre-Retrofit Conditions

Flex CASCAZ TCVs CO

MonitorBase

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Attic Insulation & Attic Plane Sealing

Point Value Technical Specifications

Attic Insulation & Attic Plane Sealing 55

• Top seal all the open cavities on the attic plane

• Put a barrier around all heat producing devices

• Insulate attic to ≥ R-38

Flex CASCAZ TCVs CO

MonitorBase

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Upgrade Measure Point Value Technical Specifications

2nd Base Measure 15 Install a total of two base measures

3rd Base Measure 20 Install a total of three base measures

Receive Base Measure Bonus Points if two or more Base Measures are installed.

Base Measure Bonus Points

Flex CASCAZ TCVs CO

MonitorBase

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Base Measure Bonus Examples

Example A Example B Example CAttic Insulation & Plane Sealing

55 Attic Insulation & Plane Sealing

55 Attic Insulation & Plane Sealing

55

Duct Replacement 65 Duct Replacement 65

Whole House Air Sealing

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2nd Base Measure 15 2nd Base Measure3rd Base Measure

1520

Total Point Values:

55 55 + 65 + 15 = 135 55 + 65 + 45 + 15 + 20 = 200

Flex CASCAZ TCVs CO

MonitorBase

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Flex Measures

Upgrade Measure Point Value Technical Specifications

Wall Insulation 50 Insulate ≥ R-13

Floor Insulation 55 Insulate ≥ R-19

Duct Insulation 40 Insulate ≥ R-8

Furnace * 60 ≥ 95% AFUE

Air Conditioner * 65 ≥ 15 SEER & ≥ 12 EER

Gas Storage Water Heater 35 EF ≥ 0.67

Gas On-Demand Water Heater 90 EF ≥ 0.82

Electric Storage Water Heater 40 EF ≥ 0.93

No minimum, but Base + Flex measures must total three or more.

Base CASCAZ TCVsFlex CO

Monitor

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HVAC Requirement

• If the Air Conditioner and/or Furnace are replaced– Must complete one of the below duct measures

» Combination of Duct Sealing and Duct Insulationor» Duct Replacement

Base CASCAZ TCVsFlex CO

Monitor

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Combustion Safety Test

• All projects require both Combustion Appliance Safety (CAS) and Combustion Appliance Zone (CAZ) tests

• Tests must be completed before work begins and after work is completed

• Your team must have a BPI/BA certified professional on staff or on contract

• The Energy Network will offer contractors a $150 Combustion Safety Test Incentive for each completed project to help cover some of this testing

Base Flex CASCAZ TCVs CO

Monitor

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Thermostatic Control Valve (TCVs)

• All Home Upgrade projects must install Thermostatic Control Valves (TCVs, aka ladybugs) on all bathroom showerheads

• Special condition: Gas On-Demand Water Heaters

– TCVs should not be installed in a home with a tankless water heater

– Instead, install showerheads of 2.5 gpm or less

Base CO MonitorFlex CAS

CAZ TCVs

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Carbon Monoxide (CO) Monitor

• Each floor of the home needs to have one CO Monitor

• If the home already has a functioning CO Monitor, the contractor does not need to install one

Base Flex CASCAZ TCVs CO

Monitor

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Additional Documentation

• Required documentation:– Itemized invoice– Homeowner’s signature on Terms and Conditions

• Required as applicable: – Asbestos abatement letter – CF-4R HERS Certificate (can replace manometer photos)– Insulation Certificate – Knob and Tube C-10 certificate

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Quality Control Inspections & Mentoring

• On-site field mentoring is required for the first Home Upgrade project that is completed.– Our QC inspector will witness the contractor performing their test-out.

• After your first project, you can choose to have the on-site field mentor at test-out to help ensure your application proceeds smoothly– Maximum of 5 times.

• There will be random field QC inspections for subsequent projects– Contractor and homeowner will be notified when you submit the initial

application if the project is selected for QC– Mentoring will not substitute the random QC inspections.

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Inspection & QC Mentoring

Incentive Application Process

Register with Online Portal

Submit New Application to Reserve

Funds

Perform the Work

Submit Project Completion

Form

Receive Check

• CAS / CAZ Test-In• Must perform all

approved scope of work within 60 days of reservation

• CAS / CAZ Test-Out

• Contractor and homeowner receive confirmation email

• Both are notified if selected for QC

• Project undergoes review

• Contractor and homeowner receive an email if needs additional work; re-submit

• Contractor and homeowner receive email when passes

• Receive check in 4 – 8 weeks

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Co-op Marketing Program

Cooperative Marketing (Co-op Marketing):• Offers a means for contractors to gain access

to funding for marketing efforts• Provides 50% Matching Funds up to $20,000

when you incorporate Home Upgrade into your marketing efforts

• Is available on a first-come, first-served basis, while funds are available

• Supports both innovative and conventional marketing, from radio to van wraps to lawn signs

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Co-op Marketing Requirements

Contractor Participation Requirements:• Maintain active status as an active Energy Upgrade California™ Home

Upgrade Participating Contractor • Sign and return:

o Co-op Marketing Participation Agreemento (TBD) Energy Upgrade California - Memorandum of Understanding

• NEW – More contractors can participate! o Available across The Energy Network service area

Matching Funds Requirements:• Projects must be submitted for review and pre-approval• Projects comply with:

o Co-op Marketing Guidelineso Energy Upgrade California Brand Guidelineso Participation Agreement

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Thank you!

Questions?

homeupgrade@bki.com

Learn More

http://action.theenergynetwork.com/hu

877-785-2237