Rapid Deployment 

Energy Efficiency (RDEE) Toolkit: 

Planning & Implementation Guides 

FINAL 

December 9, 2009 

1
Forward 

The Rapid Deployment Energy Efficiency (RDEE) Toolkit is designed to help state and 

local authorities and energy efficiency program administrators plan and implement 

successful programs as they advance energy efficiency through the American Recovery 

and Reinvestment Act of 2009. 

The Toolkit was developed under the guidance of and with input from the Leadership 

Group of the National Action Plan for Energy Efficiency, with support from the U.S. 

Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). It 

was prepared by Peter Lemoine, Tyler Huebner, David Pickles, Bill Prindle, and Nora 

Buehler of ICF International.

2
Table of Contents

FORWARD ...........................................................................................................2

1. INTRODUCTION AND PURPOSE................................................................5

2. PLANNING GUIDE.........................................................................................10

2-A: Criteria for Program Selection................................................................................................... 11

2-B: Overview of the Rapid Deployment Energy Efficiency Programs............................................ 12

2-C: Framework for Program Selection and Budgeting .................................................................... 15

2-D: Allocation of Funds Among Programs...................................................................................... 16

2-E: Program/Portfolio Benchmarking.............................................................................................. 18

2-E-1: Program Cost per Annual kWh............................................................................................. 19

2-E-2: Annual Energy Savings as a Percentage of Total Statewide kWh Sales............................... 20

2-E-3: Savings by End-Use .............................................................................................................. 20

2-E-4: Residential Versus Non-residential Spending and Savings .................................................. 21

3. IMPLEMENTATION GUIDE ...........................................................................22

3-A: Using Energy Efficiency Contractors........................................................................................ 23

3-A-1: Types of Program Implementation Contractor Support ....................................................... 23

3-A-2: Generic RFP Timeline .......................................................................................................... 24

3-A-3: Proposal Evaluation Criteria ............................................................................................... 26

3-A-4: Performance Contracting ..................................................................................................... 26

3-B: Training Needs and Resources.................................................................................................. 29

3-B-1: Program Administrator Training.......................................................................................... 30

3-B-2: Contractor Training Resources and Certifications .............................................................. 31

3-C: Marketing Strategies.................................................................................................................. 35

3-C-1: Researching and Defining Target Markets........................................................................... 35

3-C-2: Adopting Key Marketing Strategies...................................................................................... 37

3-C-3: Illustrative Program Costs ................................................................................................... 38

3-D: Tracking and Estimating Results (M&V).................................................................................. 40

3-D-1: Tracking Project and Program Data.................................................................................... 40

3-D-2: Estimating Savings ............................................................................................................... 41

3-D-3: Quality Control..................................................................................................................... 43

3-D-4: Resources.............................................................................................................................. 45

4. RESIDENTIAL RDEE PROGRAM SNAPSHOTS AND TEMPLATES...........46

4-A: Residential RDEE Programs ..................................................................................................... 47

R1: ENERGY STAR Labeled Products........................................................................................... 48 ®

R2: Tier 1 Energy Audit and Direct Install...................................................................................... 56

R3: Home Performance with ENERGY STAR (HPwES)................................................................ 64 ®

R4: Residential Efficient Heating and Cooling................................................................................ 73

4-B: Marketing Strategies & Tactics for Residential Programs ........................................................ 81

4-B-1: Marketing Plan Template: Home Performance with ENERGY STAR ................................ 82 ®

4-B-2: Marketing Plan Template: Residential Efficient Heating and Cooling ................................ 84

4-C: Illustrative Request for Proposal ............................................................................................... 88

4-C-1: Home Performance with ENERGY STAR ........................................................................... 88 ®

5: NON-RESIDENTIAL RDEE PROGRAM SNAPSHOTS AND TEMPLATES..94

5-A: Non-residential RDEE Programs............................................................................................... 95

NR1: Non-Residential Prescriptive Program .................................................................................... 96

3
NR2: Non-Residential Retrocommissioning (RCx).......................................................................... 103

NR3: Commercial Food Service ...................................................................................................... 111

NR4: Commercial & Industrial (C&I) Custom................................................................................ 118

NR5: Non-Residential Benchmarking and Performance ................................................................. 126

NR6: Non-Residential On-Site Energy Manager............................................................................. 134

5-B: Marketing Strategies & Tactics for Non-Residential Programs ................................................... 141

5-B-1: Marketing Plan Template: Non-Residential Prescriptive Program ................................... 142

5-B-2: Marketing Plan Template: Non-Residential Retrocommissioning (RCx) Program............ 145

5-B-3: Marketing Plan Template: Commercial Food Service ....................................................... 148

5-B-4: Marketing Plan Template: Non-Residential Benchmarking and Performance .................. 152

5-C: Illustrative Request for Proposal ............................................................................................. 155

5-C-1: Non-Residential Prescriptive Program .............................................................................. 155

APPENDIX A: OVERVIEW OF STIMULUS PACKAGE................................158

Energy Efficiency and Conservation Block Grants (EECBG)............................................................... 158

State Energy Program (SEP).................................................................................................................. 161

ENERGY STAR Appliance Rebates ® ................................................................................................... 163

Weatherization Assistance Program (WAP).......................................................................................... 163

Smart Grid ............................................................................................................................................. 163

Green Jobs............................................................................................................................................. 164

APPENDIX B: 

..............................................................................165

ESTIMATING THE EMPLOYMENT EFFECTS OF ENERGY 

EFFICIENCY PROGRAMS

Methodology.......................................................................................................................................... 165

Application to Programs........................................................................................................................ 166

4
1. Introduction and Purpose 

The American Recovery and Reinvestment Act (ARRA) authorized about $17 billion in 

energy efficiency funding that qualifying public entities—primarily states, cities, and 

counties—could pursue. The primary objectives of this funding are to create jobs, save 

energy, and build clean energy (energy efficiency and renewable energy) infrastructure for 

the longer term. To accomplish these objectives, the Administration and Congress have 

placed heavy emphasis on transparency and accountability in the use of ARRA funds.1 At 

the same time, funds must be obligated and expended rapidly in order to have an impact on 

economic recovery in the near future. The U.S. Department of Energy (DOE) has already 

begun distributing these funds to states and municipalities. It is possible to see funding 

targets and awards made to date at http://www1.eere.energy.gov/recovery/, a Web site set 

up to support the task of dispersing ARRA funds in the energy efficiency and related clean 

energy areas. 

The Rapid Deployment Energy Efficiency (RDEE) Toolkit is being provided to help 

recipients of ARRA funding meet these objectives and challenges. The Toolkit provides 

information on ten program types across the residential, commercial, and industrial 

sectors, drawn from the experience of hundreds of federal, state, local, private, and utility 

organizations.2

 These programs were selected because they work: they have been 

successful in putting to good use hundreds of millions of dollars in training, support, 

marketing, administration, and customer incentives. Moreover, these ten program types 

have improved through years of experience and scrutiny in design and implementation. 

Over this time, these programs have become part of the nation’s field-tested energy 

efficiency delivery infrastructure. 

ARRA grantees can leverage this infrastructure in quickly launching these proven 

program designs. This Toolkit provides the information grantees need to plan and begin 

implementing the following ten RDEE program types. It goes well beyond the minimum 

information required in ARRA grant applications, and is thus still useful even for grantees 

whose awards have been announced.3

Residential Programs

R1. ENERGY STAR® Labeled Products 

R2. Tier 1 Residential Energy Audit and Direct Installation 

R3. Home Performance with ENERGY STAR®

R4. Residential Efficient Heating and Cooling 

 

1

 See http://www.recovery.gov/?q=content/accountability-and-transparency. 2

 This includes the experience of the participants in the National Action Plan for Energy Efficiency, a public 

private initiative to pursue all cost-effective energy efficiency by 2025, www.epa.gov/eeactionplan. 3

 The Planning Guide was first published in May 2009, in advance of the ARRA deadlines for state and 

local governments to submit grant applications to DOE. Although these deadlines have now passed, 

applications did not require full program details, so grantees can still use the information in this Toolkit 

for detailed guidance on how to finalize designs and implement programs. 

5
***** 

Non-Residential Programs

NR1. Non-Residential Prescriptive Rebates 

NR2. Non-Residential Retrocommissioning 

NR3. Commercial Food Service 

NR4. Non-Residential (Commercial & Industrial) Custom Incentives 

NR5. Non-Residential Benchmarking and Performance 

NR6. Non-Residential On-Site Energy Manager 

The Toolkit is organized such that an administrator can access relevant program 

information without having to sift through details of programs that are not directly 

relevant to them. The Table of Contents should be used to guide the reader to the 

appropriate section(s). The Toolkit includes four major components: 

 Planning Guide. The purpose of the Planning Guide is to help states and local 

governments plan for RDEE programs, either individually or as part of a portfolio 

of initiatives. 

 Implementation Guide. The purpose of the Implementation Guide is to help 

administrators move from planning into the early stages of program 

implementation. 

 RDEE Program Snapshots and Templates. These chapters provide a more 

detailed look at each of the RDEE programs. Chapter 4 focuses on the residential 

sector RDEE programs and Chapter 5 focuses on the non-residential RDEE 

programs.

 Appendices. Appendix A includes an overview of ARRA energy efficiency 

funding opportunities and rules for participation. Appendix B provides 

background on the methodology and assumptions of the employment estimates 

developed for the Planning Guide. 

Planning Guide 

The second chapter of the Toolkit is the Planning Guide. The purpose of the Planning 

Guide is to provide the information program administrators need to plan for residential 

and non-residential energy efficiency programs, either as stand-alone efforts or as part of 

a portfolio of programs. The Planning Guide addresses: 

 Target market 

 Evaluation, monitoring, and verification requirements 

6
 Infrastructure requirements 

 Training requirements 

 Staffing requirements 

 Implementation timeline 

 Energy savings and portfolio benchmarking 

 Participation rates 

 Total budget 

 Job creation estimates 

 Cost-effectiveness 

 Resources and assistance 

Note that this document does not address the planning process and potential for 

renewable energy programs. 

The Planning Guide is organized as follows: 

 Considerations in program selection and budgeting. This section outlines the key 

factors to consider in program selection and budgeting, including job impact, 

collaboration/leverage of funds, significance of savings, cost of savings, and 

sustainability and market transformation. 

 Overview of the RDEE program types. This section briefly describes each of the 

ten program types in the Toolkit including the target market and major program 

elements. 

 Framework for decision making. This section outlines how to use the programspecific information presented in the Planning Guide to select and budget for one 

or more of the ten RDEE programs. This section also discusses portfolio 

benchmarking to help program administrators “reality check” their proposed set 

of programs against historic program performance around the country, in terms of 

cost-effectiveness and allocation between residential and non-residential sectors. 

Implementation Guide 

The third chapter of this document is the Implementation Guide. The purpose of this 

chapter is to help program administrators move from planning to program launch and 

management. The Implementation Guide includes information on four key aspects of 

program implementation that program administrators need to address to get RDEE 

programs off the ground. These topics include: 

 The role and use of implementation contractors. This section reviews the ways in 

which efficiency programs typically use contractor support, and provides 

guidance on hiring and managing contractors. Included is a summary of the 

major tasks involved in issuing an RFP and selecting a contractor. 

7
 Training needs and resources. This section discusses the skill level, 

certifications, and training needed for program administrators and contractors, 

with links to each type of training. 

 Marketing strategies. This section provides an overview of proven marketing 

strategies and tactics, including how to define target markets for each RDEE 

program. 

 Tracking and estimating results (M&V). This section helps program 

administrators determine what tracking and measurement infrastructure they need 

in order to report program savings to DOE and others overseeing program 

funding. 

RDEE Program Snapshots and Templates 

The final two chapters provide a more detailed look at each of the RDEE programs. 

Chapter 4 focuses on the residential sector RDEE programs while Chapter 5 focuses on 

non-residential RDEE programs. The information included in each chapter is outlined 

below. 

Residential RDEE Programs

 Snapshots for each residential program,4

 with data and guidance on the 

following considerations in program design and implementation: 

(a) Target market 

(b) Infrastructure requirements 

(c) Staffing requirements and job creation 

(d) Training needs and resources 

(e) Implementation timeline 

(f) Program performance (savings, cost, and cost-effectiveness) 

(g) Evaluation, measurement & verification (EM&V) support 

(h) Resources and assistance (including links to other materials on the 

Web) 

 Marketing plan templates for two programs: 

(a) Home Performance with ENERGY STAR®

(b) Efficient Heating and Cooling 

 Contractor RFP template for Home Performance with ENERGY STAR®

Non-Residential RDEE Programs

 Snapshots for each non-residential program 

 

4

 These snapshots have been revised and expanded since initial publication in the RDEE Toolkit Planning Guide. 

8
 Marketing plan templates for four programs: 

(a) Prescriptive Programs 

(b) Retrocommissioning (RCx) Programs 

(c) Commercial Food Service 

(d) Benchmarking and Performance 

 Contractor RFP template for Prescriptive Programs 

9
2. Planning Guide

10
2-A: Criteria for Program Selection 

ARRA grant recipients face a formidable challenge in allocating their resources and 

stimulus funding most effectively across a wide range of programming choices. The 

State Energy Program (SEP) Funding Opportunity Announcement (FOA)5 identifies 

many of the criteria and considerations that DOE has outlined as important in the SEP 

grant process. Some criteria are explicit and quantifiable, and others are more general in 

nature, emphasizing the need for the programs to be consistent with the requirements of 

the ARRA and with DOE’s guiding principles for the SEP program. While many of the 

criteria are addressed in multiple sections of the FOA, and are expressed in slightly 

different terms, many of the primary considerations are captured in the following five 

metrics.6

 

1. Job Impact. The ARRA and SEP FOA are clear in their guidance that the 

funding should have a significant impact on creating new or sustaining existing 

jobs. The FOA emphasizes the urgency of this need by preferring programs that 

can be initiated and completed expeditiously. Tracking and reporting of the 

nature and duration of jobs created by the funds is also required. 

2. Collaboration/Leverage of Funds. The SEP FOA required states to commit to 

using funding to expand existing programs, including ratepayer-funded (utility or 

public-benefit fund) programs, or to create new programs, and not to supplant or 

replace existing funding. Collaboration among Federal and state agencies, and 

across public and private agencies, is explicitly encouraged, as is use of best 

practices from other states. Given the need to expend funds quickly while 

minimizing the risks associated with starting new programs, the use of existing 

programs and infrastructure is also encouraged. 

3. Magnitude of Energy of Savings. The SEP FOA reinforced that states’ overall 

energy strategies should pursue a minimum goal of reducing per capita energy 

consumption at least 25 percent relative to the 1990 base year by 2012. 

Combined with the goal of a significant increase in jobs and a reduction in 

environmental impacts, the FOA anticipates that the programs and resulting 

energy impacts will be large. 

4. Cost of Savings. The SEP FOA strongly encouraged state portfolios of SEP 

programs to achieve at least 10 million annual source Btus in savings for every 

$1,000 spent. While individual programs may, for good reason, provide fewer 

savings, the relative cost of the programs will be an important consideration. 

Note that this standard of cost effectiveness equates to approximately $1 per firstyear saved kWh for electric utilities, whose program portfolios often achieve 

energy savings for less than half this cost. 

 

5

 U.S. DOE Funding Opportunity Announcement: State Energy Program Formula Grants, #DE-FOA0000052. Available at: http://apps1.eere.energy.gov/wip/pdfs/sep_arra_foa.pdf. 

6

 Note that these criteria include a mix of pass/fail criteria, as well more ordinal criteria (e.g., where the 

project can satisfy the criteria to varying degrees). This document does not modify, limit, or change in 

any way the requirements of the FOA. 

11
5. Sustainability and Market Transformation. The SEP FOA anticipates 

preservation of the jobs and activities initiated by the ARRA even after the funds 

have been expended. States have been requested to focus program efforts on 

market transformation activities, which cause lasting changes in the function of 

markets or behavior of participants. Programs that can continue to provide value 

by leveraging other sources of funds (such as ratepayer or private sector funds) or 

by changing long-term practices (such as teaching quality installation and 

maintenance practices) are appropriate. 

Note that these are not the only criteria. Other important criteria (such as the 

Governor’s Assurance) also apply. These criteria may, however, prove very useful to 

recipients in the analysis, prioritization, and funding of programs. 

Although these criteria are designed to reflect the key considerations of DOE during the 

award process, states may also wish to overlay their own additional requirements. While 

these criteria will be situation specific, they might include: 

 Alignment with the mission and statutory authority of the state agency and 

previously filed SEP plans 

 Availability of tracking systems for program funds, quality assurance and 

control (QA/QC) of work conducted with the funds, and accounting and antifraud controls 

 Electric system requirements (e.g., timing of future capacity or energy driven 

additions) 

 Availability of programs for all taxpayers and a broad-based opportunity to 

participate in at least one program 

 Special accommodations for low-income customers 

 Sensitivity to competitive market operations and a desire not to create 

programs that compete with or provide inappropriate competitive advantage to 

individual market participants 

 Ability of the program to integrate with plans by regional utilities to introduce 

an Advanced Metering Infrastructure or Smart Grid 

 The impact on the ability to reach goals that may have been established for 

existing energy efficiency program providers, especially utilities 

2-B: Overview of the Rapid Deployment Energy Efficiency Programs 

The Rapid Deployment Energy Efficiency (RDEE) Toolkit provides information on 10 

energy efficiency program types. These programs each have a proven track record and 

are consistent with the criteria and considerations outlined by DOE. Each of these 

programs typically: 

 Addresses broad target audiences 

 Creates jobs 

12
 Saves significant amounts of energy 

 Is cost-effective 

 Has established measurement and evaluation methods 

 Leverages existing infrastructure 

 Is sustainable, at least in part, and results in long-term market transformation 

 Is comparatively low-risk 

 Has manageable complexity 

 Has available extensive design support and case study information 

The program types span energy efficiency options across the residential, commercial, and 

industrial sectors. They are: 

 

1. ENERGY STAR® Labeled Products (R1). This residential and small 

commercial sector program promotes efficient lighting (CFLs and fixtures) and 

appliances through a variety of incentive structures including direct rebates to the 

customer as well as upstream incentives. This program generally targets the 

broad residential and small commercial market place. Particular products may be 

selected for inclusion, such as lighting products or home appliances. Savings will 

depend upon the products included. Typical savings range from approximately 

0.5 to 3.0 million British thermal units (MBtu) per participant. 

2. Residential Energy Audit and Direct Installation (R2). This program targets 

the same market and works with the same set of contractors as HPwES (see 

below); the key difference is a more basic audit and a less-extensive and lowercost set of measures, such as CFLs, hot water heater wraps, pipe insulation, and 

low flow showerheads. Typical savings are approximately 3 to 6 MBtu per 

participant. 

3. Home Performance with ENERGY STAR® (R3). This residential sector 

program offers whole home retrofits using qualified contractors, established home 

assessment protocols, and incentives from the program sponsor. This program 

can be a good strategy particularly for older pre-code constructed homes. The 

program is estimated to reduce home energy bills by 20 percent on average. 

4. Residential Efficient HVAC (R4). This program targets HVAC contractors and 

homeowners to increase sales and proper installation of ENERGY STAR 

qualified HVAC equipment, such as air conditioners and furnaces.7

 Savings are 

 

7

 The measure mix (the technologies that are cost-effective for the program to rebate) of HVAC programs 

varies largely based on weather and primary fuel (electric or gas). For example, in some areas of the 

country measures such as ground source heat pumps and hydronic heating systems are cost-effective and 

have been incorporated into residential HVAC programs. 

13
very sensitive to local climate conditions, but the minimum savings range per 

participant is approximately 5 to 20 MBtu. 

5. Non-Residential Prescriptive Rebates (NR1). This program provides incentives 

to the commercial, institutional, and industrial market for upgrade or retrofit of 

equipment with new, more energy-efficient equipment, such as lighting, HVAC 

equipment, and products like motors and refrigerators. Particular equipment and 

products may be selected for inclusion in this program, such as lighting; savings 

depend upon the equipment and products included. Generally, a large percentage 

of program savings come from lighting retrofits. 

6. Non-Residential Retrocommissioning (NR2). Retrocommissioning offers 

building owners a systematic process for evaluating a structure's major energyconsuming systems and identifying opportunities to optimize equipment 

operation. Retrocommissioning tunes-up existing buildings, improving their 

energy efficiency and operational procedures. It is typically carried out through 

local networks of commissioning providers. Typical savings range from 

approximately 4,000 to 20,000 MBtu per participant. 

7. Commercial Food Service Equipment Incentives (NR3). This program rebates 

energy-efficient commercial food service equipment such as refrigerators, 

freezers, steamers, fryers, hot food holding cabinets, ice machines, dishwashers, 

ovens, and other technologies, primarily aiming to influence the buyer to purchase 

more efficient equipment when their existing equipment has failed. Typical 

savings range from approximately 20 to 60 MBtu per participant. 

8. Non-Residential Custom Incentives (NR4). A commercial and industrial (C&I) 

Custom Program supports C&I customers in identifying and implementing sitespecific and complex energy efficiency opportunities, which often require 

calculations to determine energy savings. A typical project may involve industrial 

process efficiency, chillers/boilers, data center efficiency, or electric motor 

retrofits, or projects that otherwise fall outside of the prescriptive program. 

Savings per project can be very large, but vary widely by state/industry. 

9. Non-Residential Benchmarking and Performance Improvement (NR5). This 

program works with commercial facility operations staff and owners to 

benchmark, monitor, and improve building energy performance using tools such 

as ENERGY STAR Portfolio Manager and building sub-metering equipment, as 

well as to recommend energy efficiency upgrades based on analyses of building 

performance data. This program is estimated to reduce building energy use by 10 

to over 30%. 

10. Non-Residential On-Site Energy Manager (NR6). This program assists larger 

customers by providing an On-Site Energy Manager (OEM) to work with them 

for a six-month period or longer. During their tenure with a business, the OEM 

will evaluate facilities’ energy use and work with maintenance staff to reduce 

14
2-C: Framework for Program Selection and Budgeting 

This section can be used to select and plan for any one of the ten programs presented here 

or to develop a portfolio of such programs. To determine which programs may be 

appropriate for use of SEP and EECBG funding in a particular area, the Toolkit provides 

the following basic program information and planning assumptions on:8

 Target audience 

 Likely near-term annual penetration rates 

 Average energy savings per participant 

 Annual program costs per participant 

 Anticipated number of jobs created 

This program planning information permits program administrators to scale the numbers 

up or down based on population, location, or other specific information.9

 Program 

sponsors are encouraged to consult the resources identified and/or contact EPA for 

assistance in identifying appropriate planning assumptions for their own 

states/cities/counties and developing program designs. 

The use of this information is illustrated below for various hypothetical residential and 

non-residential populations. Based upon assumptions for participation rates, average 

costs per participant, average savings per participant, and estimated jobs created, the 

following program planning information can be developed (as illustrated in Table 1): 

 Total annual program costs 

 Total annual energy saved 

 Jobs created 

 Source Btu saved per $1,000 invested 

 

8

 These are initial planning assumptions based on the experience of a number of organizations 

implementing these programs. However, recipients are encouraged to evaluate these assumptions as 

their plans are developed to address local circumstances that could be different from the circumstances of 

past program implementers due to different climate conditions, economic activity levels, incentive 

strategies, market infrastructure, etc. 

9

 The information provided is by necessity somewhat generic, and may not reflect individual program 

design approaches or be achievable under all circumstances. 

15
Table 1: Illustrative Program Metrics 2009-2011 

Program Eligible

Population

Participation

rate Participants

Average

Cost per

Participant

Program Cost Jobs per

$1M

Jobs

Created

Per Unit

Source

MBtu Saved

MBtu

Saved

Source

Mbtu

saved per

$1,000

R1. ENERGY STAR Products 1,000,000 23.4% 235,530 $              26   $      34,700,000 9 296 3 3,029,000 87

R2. Easy Audi t and Di rect Install 250,000 3.5% 8,700 $            990   $         8,636,000 21 184 5 43,500 5

R3. HPwES 250,000 1.0% 2,500 $        5,850   $      14,625,000 20 297 60 150,000 10

R4. Efficient Heating and Cooling 1,000,000 4.0% 40,000 $            290   $      11,700,000 14 168 25 1,000,000 85

NR1. Prescriptive 100,000 1.8% 1,820 $        3,610   $         6,571,000 9 57 400 726,000 110

NR2. Retrocommissioning 20,000 0.5% 100 $      48,100   $         4,810,000 12 58 5,800 579,500 120

NR3. Commerical Food Service 40,000 7.7% 3,075 $        1,400   $         4,307,750 7 29 60 172,000 40

NR4. Custom 100,000 0.3% 261 $      20,000   $         5,220,000 16 81 1,500 639,450 123

NR5. Commerical Benchmarking and Performance 20,000 0.5% 90 $      40,000   $         3,600,000 12 43 2,900 260,550 72

NR6. On‐Site Energy Manager 20,000 0.5% 105 $      47,600   $         5,001,250 8 39 4,500 472,500 94

2-D: Allocation of Funds Among Programs 

Program administrators need to decide which programs to pursue and how large a budget 

to allocate to each program. This is important because ARRA funds are unlikely to be 

sufficient to support a complete program portfolio serving all customer types and end use 

markets; grantee’s challenge is to pick the best ways to apply limited funds. This section 

outlines a framework for making these decisions, using both quantitative and qualitative 

considerations. 

A primary consideration in selecting a portfolio of programs should be to maximize its 

value, subject to applicable constraints. In this case, value is determined in large part by 

the multiple metrics in ARRA funding rules, including number of jobs created and total 

energy saved. Chief constraints would include the available budget, cost per Mbtu saved, 

and the perceived risk of the projects. 

There are many valid ways to select programs, some founded in mathematical scoring 

models, and others based on qualitative assessments. Given that the criteria established 

above are both quantitative and qualitative, a hybrid approach may be most appropriate 

for allocating ARRA funds. 

Because the ARRA’s primary goals are to create jobs and save energy, this guide 

provides the information necessary to estimate and benchmark these benefits. While 

there is some uncertainty in these estimates, ranges of probable impacts are provided. 

The process used to develop ranges for the jobs created from the programs is outlined in 

Appendix B. The energy savings estimates are derived from past program experience 

with these ten program types. 

Similarly, estimates of the cost-effectiveness of the programs, expressed in terms of 

MBtu per $1,000 spent should be developed. Again, these can reasonably be expressed 

as ranges using the information presented in this document and other sources. 

In addition to these quantitative items, each program should be evaluated on qualitative 

criteria that are significant to each applicant. Examples of these criteria might include: 

16
1. The applicability of the program to a broad range of constituents. The definition 

of equity across taxpayers may vary based on circumstances, but will generally 

require that, over time, all taxpayers have the opportunity to participate in the 

programs, or will at least share materially in their benefits. 

2. The comparative simplicity and risk level of the program. Relative risk of 

individual programs, and of the portfolio as a whole, is difficult to judge since 

there is often a lack of reliable information on future performance. Therefore, 

risk assessment should examine: the quality and reliability of information used in 

determining the quantitative metrics; track record of the program and/or its 

implementer in hitting goals and maintaining budgets; and dependence of the 

program on factors outside the grantee’s direct control. 

3. The sustainability of the program after ARRA funding has been expended. 

Sustainability depends in part upon the degree to which the program permanently 

builds the market for energy efficiency: for example, by changing contractor 

practices or distributor stocking practices, or increases the consumer demand for 

efficient products and services. 

4. The degree to which the program leverages other funding sources or programs. 

Opportunities for leverage are best found by charting existing programs that can 

supplement grantee program funding, and by reaching out to other entities 

willing and able to introduce such programs. Utilities, both public and private, as 

well as public agencies, tax incentives, and regional transmission organizations 

may all serve as potential sources of leveraged funds. 

The evaluation process might include a ranking of each program from “low” to “high” 

relative to these criteria, as illustrated in Table 2. This table can be adapted for use by 

program administrators to identify the best opportunities in their region. 

Table 2: Illustrative Metrics of Potential RDEE Programs 

Program

Approx

Mbtu per

$1000

Approx

Jobs per

$M

Applica‐

bility

Simplicity &

Lack of Risk

Sustain‐

ability Leverage

RESIDENTIAL

R1. ENERGY STAR Products 3 9 High High Moderate High

R2. Easy Audi t and Direct Install 5 21 High Moderate High Moderate

R3. HPwES 60 20 High Moderate High Moderate

R4. Efficient Heating and Cooling 25 14 High High Moderate High

NON‐RESIDENTIAL

NR1. Prescriptive 400 9 Moderate High Moderate High

NR2. Retrocommissioning 5,800 12 Moderate Moderate Moderate Moderate

NR3. Commercial Food Service 60 7 Moderate Moderate Moderate Moderate

NR4. Custom 1,500 16 Moderate Moderate Moderate Moderate

NR5. Commercial Benchmarking and Performance 2,900 12 Moderate Moderate High Moderate

NR6. On‐Site Energy Manager 4,500 8 Low Moderate High Moderate

Recipients should consider the program and policy environment in their own jurisdictions 

when assigning such rankings. For example, a state with utilities that are actively 

promoting similar programs might provide “high” opportunities for leverage. In contrast, 

17
states with few or no such programs might have a “moderate” or “low” opportunity for 

leverage. Details about the attributes of each program are provided in Chapters 4 and 5; 

these details will support the evaluation of each program. 

2-E: Program/Portfolio Benchmarking 

Benchmarking a set of proposed programs against the performance of existing programs 

nationwide is important for energy efficiency program implementation because it 

provides a “reality check” for program administrators. Benchmarking can help answer 

questions like: “How do our programs compare to others in terms of cost-effectiveness?” 

or “How do they compare in terms of savings impacts?” 

In this section, four metrics for benchmarking a set of programs are presented: 

1. Program cost per annual kWh10. The U.S. Energy Information Administration 

(EIA) and the American Council for an Energy-Efficient Economy (ACEEE) 

provide data on the cost-effectiveness of programs run by a variety of program 

administrators nationwide. 

2. Annual energy savings as a percentage of total statewide kWh sales. Recent industry 

data illustrate the range of impacts energy efficiency programs have had on electricity 

sales in states, as well as Energy Policy Act (EPAct) of 2005 savings goals. 

3. Savings by end-use. Experience strongly suggests that lighting improvements 

account for a large fraction of verified program savings, especially in the first few 

years of program implementation. 

4. Residential versus non-residential spending and savings. The allocation of program 

spending across customer classes varies widely by state and/or utility territory. 

Nevertheless, the range of typical allocations provides a guidepost for states and 

local governments. 

Note that benchmarking and program measurement and verification (M&V) are related but 

separate topics. Benchmarking provides context on overall portfolio performance while 

M&V involves the details of program tracking and QA/QC on individual measures and 

projects. M&V is discussed in the Tracking and Estimating Results section, below. 

Table 3 below illustrates the range of typical values for each of these metrics, derived 

from several published sources.11 Program administrators can use the “guidepost” values 

in Table 3 to help gauge whether their proposed program portfolios are consistent, in 

 

10 Cost per annual-year kWh is defined as total program costs during a program year, divided by the 

program’s energy savings gained during the program year. 

11 Martin Kushler, Dan York and Patti While. Meeting Aggressive New State Goals for Utility-Sector 

Energy Efficiency: Examining Key Factors Associated with High Savings. March 2009. ACEEE Report 

Number U091. 

U.S. EIA Form 861 Data, 2006. 

Randy Gunn. Benchmarking 2005 DSM Results. Summit Blue Consulting. February 8, 2007. 

18
terms of cost-effectiveness and savings, with expected cost-effectiveness and savings 

based on the measured performance of best practice programs around the country. 

Some important notes on benchmarking: 

1. Although the median values for dollars per annual kWh are $0.14 to $0.44, these 

values are much lower than the DOE’s threshold for cost-effectiveness, which is 

approximately $1.00 per annul kWh. What this means is that the RDEE 

programs, which are modeled on the programs that have median values of $0.14 

to $0.44 per kWh, should be very cost-effective when benchmarked against the 

DOE’s cost-effectiveness threshold. 

2. Although median annual energy savings as a percentage of total statewide kWh 

sales have historically been around 0.4% to 0.7%, the EPAct 2005 goal is much 

higher, around 2%. As discussed further below, this means that most new 

programs will have to be much more aggressive in capturing energy efficiency 

opportunities than most historical programs. 

Table 3: Total Program Benchmarking Metrics

Benchmarking Metric "Guidepost" Value(s) Source

$ per annual kWh $0.14 ‐ $0.44/kWh† 

(Avg ~ $0.25/kWh)

U.S. EIA; ACEEE

Median annual energy savings as a % of statewide electricity sales 0.4% ‐ 0.7% Summit Blue; ACEEE

EPACT 2005 goal (25% per capita reduction of 1990 levels by 2012) 2% + DOE SEP FOA

60% ‐ 75% lighting

(decreasing over time)

Residential Spending (% of total) 40‐49%                       

(Avg ~45%) ICF; ACEEE

Residential Savings (% of total ) 35% ‐ 40% ICF; ACEEE

†

The DOE's cos t‐e ffectivenes s metric i s in Mbtu/$1000. These values transla te to 25‐70 Mbtu/$1000 i n program spending

Savings by end‐use ICF; ACEEE

Conceptually-similar programs can vary widely state to state, reflecting the variability in 

markets and economies across the country. Therefore, as with other metrics in this 

Toolkit, benchmarking metrics are suggested as guideposts rather than as hard targets for 

balancing the set of programs. 

Each of these benchmarking metrics is described in the subsequent sections. 

2-E-1: Program Cost per Annual kWh 

The DOE’s cost-effectiveness guide in the SEP Formula Grant FOA is 10 million source 

Btus (10 MBtus) per $1,000 in energy efficiency program spending,12 or approximately 

$1 per annual kWh. Estimated cost-effectiveness of the RDEE programs is well below 

$1 per annual kWh as noted above. 

 

12 U.S. DOE Funding Opportunity Announcement: State Energy Program Formula Grants, #DE-FOA0000052 

19
An analysis of EIA data13 shows that of the 70 program administrators (including 

utilities, states, local governments, and other entities) spending $1 million or more on 

energy efficiency programs in 2006, 63 (90%) spent less than $1 per annual kWh savings. 

The median cost-effectiveness was approximately $0.25 per annual kWh, or 40 Mbtu per 

$1,000.14 A similar analysis using 2006 data in ACEEE’s 2008 State Energy Efficiency 

Scorecard shows similar results at the state level. The median cost in that analysis is 

approximately $0.19 per annual kWh, or 50 Mbtu per $1,000.15 

Experience with the programs in the Toolkit shows that most of the ten program types are 

expected to achieve cost-effectiveness levels above the median on a stand-alone program 

basis, and in combination would be expected to achieve cost-effectiveness levels near the 

$0.19 - $0.25 per annual kWh range. 

2-E-2: Annual Energy Savings as a Percentage of Total Statewide kWh Sales 

To qualify for ARRA funding, a state energy program was required to describe “how it 

intends to achieve 25 percent (or more) [savings] [per capita from 1990 levels by 2012] 

along with any initial/preliminary progress toward achieving the improvement goal.16” 

To reach this goal, even states that have been running successful programs for many 

years may need to significantly step-up their efforts. 

Many states have energy efficiency goals on the order of 1% or more of total annual energy 

sales, which is aggressive relative to actual, verified savings of programs across the 

country. Only a handful of states (among them California, Vermont, and Connecticut) 

have exceeded the 1% mark to date. Recent studies suggest that median annual electricity 

savings for larger programs lies between 0.4% and 0.7% of annual statewide kWh sales; 

these states are spending approximately 0.5% to 1.5% of their annual kWh sales to achieve 

this level of savings. 

Achieving the overall savings goals that the ARRA aspires to presents a significant but 

technically feasible challenge for most states, especially those with low market penetration of 

energy-efficient products and services. However, given the level of ARRA funding now being 

distributed, in addition to public policy agendas that continue to drive energy savings goals, the 

next several years will in all likelihood see program impacts that substantially exceed historical 

achievements. 

2-E-3: Savings by End-Use 

The cumulative body of evaluation, measurement, and verification (EM&V) results of 

energy efficiency programs suggest that programs have saved more energy by installing 

 

13 Note: EIA Form 861 data is self-reported by utilities and other program administrators; therefore, there 

may be some inconsistencies in terms of how the administrators calculated program cost metrics. 

14 U.S. Department of Energy (DOE), Energy Information Administration (EIA), Form 861 Data, 2006. 

15 American Council for an Energy-Efficient Economy. “2008 State Energy Efficiency Scorecard,” ACEEE 

Report #E086, October 2008, and “Meeting Aggressive New State Goals for Utility-Sector Energy 

Efficiency: Examining Key Factors Associated With High Savings,” ACEEE Report #U091, March 2009. 16 Section 9.1B of the FOA. 

20
lighting measures than through all other end-uses combined. For example, lighting 

accounts for approximately 60% to 75% of total savings in five states considered leaders 

in energy efficiency – California, Rhode Island, Vermont, New Jersey, and Wisconsin.17 

This suggests that states implementing programs in regions with low market penetration 

of energy-efficient technologies should expect a large majority of their savings to come 

through lighting measures over the next few years. While lighting represents “lowhanging fruit” (quick and easy savings), Federal lighting standards including those for 

many popular lighting products like CFLs, will start to phase-in in 2012, which will 

diminish the impact of today’s efficient lighting technologies.18 This suggests that 

meeting ARRA’s aspirational longer-term energy savings goals will require tapping 

savings across many other end-uses along with lighting. 

2-E-4: Residential Versus Non-residential Spending and Savings 

Non-residential energy savings from the commercial, institutional, and industrial sectors 

are usually less expensive per unit than residential energy savings, largely because 

residential programs typically bear higher administrative and marketing costs to serve a 

large number of smaller projects. Programs serving larger customers typically require 

lower administrative and marketing costs per units of savings. 

Among leading states, non-residential savings are approximately 20% to 40% cheaper to 

achieve than residential savings. On average, residential program spending is 

approximately 45%19 of total energy efficiency spending and accounts for approximately 

40% of energy savings. Conversely, non-residential program spending among these 

states averaged about 55% of total spending and 60% of savings.20 These ratios will vary 

considerably state-to-state depending on a variety of factors, including whether large 

energy users (e.g., industrial customers) have the ability to opt-out of paying for and/or 

being targeted for program participation. 

 

17 American Council for an Energy-Efficient Economy, “Meeting Aggressive New State Goals for Utility-Sector 

Energy Efficiency: Examining Key Factors Associated With High Savings,” Report # U01, March 2009. 

18 The Energy Independence and Security Act of 2007 (the “Energy Bill”), signed into law by President Bush on 

December 18, 2007, requires all light bulbs use 30% less energy than today’s incandescent bulbs by 2012 to 

2014. The phase-out will start with 100-watt bulbs in January 2012 and end with 40-watt bulbs in January 

2014. By 2020, a Tier 2 would become effective, which requires all bulbs to be at least 70% more efficient 

(effectively equal to today’s CFLs). 

19 American Council for an Energy-Efficient Economy, “Saving Energy Cost-Effectively” Draft 2009. 

Forthcoming. 

20 American Council for an Energy-Efficient Economy, “Meeting Aggressive New State Goals for Utility-Sector 

Energy Efficiency: Examining Key Factors Associated With High Savings,” Report # U01, March 2009. 

21
3. Implementation Guide

22
3-A: Using Energy Efficiency Contractors 

Few ARRA grantees are likely to have sufficient in-house staff expertise and other 

resources in place today to be able to deliver large new energy efficiency programs. This 

suggests that outside contractors may be needed to support program management, delivery, 

or evaluation. Energy efficiency program administrators currently use contractors in 

several ways: individuals are brought in to supplement in-house staff to manage programs; 

firms are hired to deliver energy efficiency to customers; or contractors are hired for 

program evaluation, measurement, and verification services. 

This chapter offers an overview of the role that contractors can play in implementing 

RDEE programs, including when and how to hire contractors. Whether and to what extent 

a state, local government, or other program administrator will need to hire implementation 

contractors depends on a number of factors, including the nature of the program, skill level 

and availability of in-house staff, opportunities to hire additional staff, ability to use 

existing contract mechanisms, and funding levels. Section 3-B of this chapter, Training 

Needs and Resources, lists the skill level and certifications typically needed for each 

program. Program administrators can use the information in that section to determine 

whether current in-house personnel have the necessary skills needed to run new programs. 

Many program administrators hire third parties to carry out turn-key implementation 

services through competitive bidding processes. Others opt to manage programs 

themselves, hiring sub-contractors to carry out specific program services. For example, 

the program administrator may manage the overall program, but hire a local architectural 

engineering firm to review work papers for prospective new construction projects. 

This chapter begins with a review of the typical categories of contractor solicitation, 

followed by a generic request for proposal (RFP) timeline, as well as a section that includes 

suggested proposal evaluation criteria. This is followed by an overview of performance 

contracting, which is highlighted in the DOE’s State Energy Program FOA.21 

Note that Chapters 4 and 5 include RFP templates for Home Performance with ENERGY 

STAR® and Non-Residential Prescriptive programs. 

3-A-1: Types of Program Implementation Contractor Support 

In procuring energy efficiency services, program administrators in a number of states 

have chosen or been directed by their regulators to issue either “broad-based” or 

“targeted” solicitations for program development/design, management, and 

delivery/implementation. Under both options, contractors bear some responsibility for 

the final design and implementation of the program(s), but the program administrator is 

ultimately responsible for the outcomes. This is not the case in Performance Contracts, 

which are discussed in section 3-A-4 of this chapter. In a “broad-based” solicitation, the 

program administrator issues a request for proposals with relatively few limits placed on 

eligible markets, program areas, or preferred delivery mechanisms. 

 

21 U.S. DOE Funding Opportunity Announcement: State Energy Program Formula Grants, #DE-FOA0000052. Available at: http://apps1.eere.energy.gov/wip/pdfs/sep_arra_foa.pdf.

23
In contrast, a “targeted” solicitation often focuses on specific program areas and/or 

under-served markets (e.g., multifamily buildings, small commercial, residential 

renovation and remodeling). 

Energy efficiency services can also be procured through various types of “partnership” 

arrangements. In this option, the program administrator develops a relationship with a 

third-party “partner” to deliver an element of an energy efficiency program (or an entire 

program) for which a design has been well-specified by the program administrator. 

These partnering arrangements allow the program administrator to form a strategic 

alliance with an organization that is uniquely suited to manage and deliver energy 

efficiency programs. Services for which partnering arrangements are most common 

include training, education/information, and certification of contractors. 

One type of partnering arrangement that is discussed in detail below is energy 

performance contracting; these are agreements between building owners or operators and 

energy service companies based on “guaranteed” (contracted) energy savings through 

comprehensive energy efficiency measures. 

3-A-2: Generic RFP Timeline 

Energy efficiency implementation contractors are generally hired through a competitive 

RFP process. 

Table 4 summarizes the major tasks involved in issuing an RFP and selecting 

implementation contractors. The time required for this process varies considerably by 

organization, but four to seven months is typical. RFP respondents are generally given at 

least three weeks to write and submit their proposals, though it is not unusual for program 

administrators to require proposals be submitted in two weeks or less following issuance 

of the RFP. An illustrative timeframe is presented for each task listed. This timeline 

assumes that each step proceeds smoothly and there are no major delays. 

24
Table 4: Issuing an RFP and Choosing an Implementation Contractor 

RFP Task

Illustrative

Time 

Frame 

(Weeks)

1. RFP Management 2-3

a. Select RFP/proposal evaluation committee

b. Assign Manager to RFP process

2. RFP development

a. Develop list of appropriate implementation contractors 2-3

b. Develop proposal evaluation criteria

c. Write RFP

3. Issue RFP 1-2

4. Contractors’ issue intent to bid statement 2-3

5. Pre‐bid question period 2-3

a. Hold pre‐bidder’s conference call to answer questions; or

b. Allow bidder’s questions to be posted online on secure RFP Web site

6. Receive proposals 1

7. Evaluate proposals 2-4

8. Select preferred contractor(s) 3-4

a. Check references of preferred contractors(s)

b. Reconcile any issues arising from reference check with preferred contractors

 i. If issues are not resolved, repeat steps 8a‐8b, if possible

c. Confirm selection of contractor(s)

d. Notify winning contractor(s)

e. Notify losing contractor(s)

9. Negotiate winning contractor(s) contract(s) 3-5

Total ~18-28

25
3-A-3: Proposal Evaluation Criteria 

Program administrators can use the criteria listed below as a starting point for assessing 

each bidder’s ability to satisfy the requirements of the RFP in a cost-effective and 

efficient manner. Each program administrator will likely have additional criteria specific 

to their circumstances. 

 Demonstrated experience with providing the proposed or similar program(s) or 

portfolio at the scale and on the timeframe requested. 

 The bidder’s commitment (financial or otherwise). 

 Experience of personnel to be assigned to the project. 

 Capacity to modify and/or expand the program when required, and to provide a 

continuing high level of performance for the duration of the contract. 

 Ability to provide independent, third party verification of program results, as well 

as tracking and reporting with transparency as required by ARRA funding 

guidance. 

 Understanding of the requirements and implications of the proposed work effort. 

 Commitment to and evidence of a diversified work force at all levels of the 

organization, and a diversified supplier strategy. 

 Quality and cost of proposed evaluation plan. 

 Estimated project cost. 

3-A-4: Performance Contracting 

Performance contracts may offer an attractive option for deploying ARRA energy 

efficiency funds, and to leverage private capital, for government and commercial building 

efficiency improvements. Many states and local governments have saved taxpayer 

dollars, as well as energy, by conducting comprehensive efficiency projects on public 

facilities through performance contracting. This section provides an overview of 

performance contracting, including typical financial vehicles employed in performance 

contracts, examples of performance contracting projects in the United States, and links to 

more detailed information. 

Overview 

Energy Performance Contracts (EPCs) or Energy Savings Performance Contracts 

(ESPCs) are agreements between building owners or operators and Energy Service 

Companies (ESCOs) based on “guaranteed” (contracted) energy savings through 

comprehensive energy efficiency measures. The ESCO, rather than the building owner, 

makes the upfront capital expenditures and bears the risk of paying for the capital and 

costs if the energy efficiency savings do not cover the cost of the project(s). 

26
Performance contracts may be especially well suited for financing large and complex 

projects. Typically, there must be a large savings potential before an ESCO and financier 

will make a commitment to an energy efficiency project; thus, performance contracts are 

generally arranged for facilities with annual energy costs above $150,000 that entail 

relatively capital-intensive efficiency investments.22

How Does a Performance Contract Work? 

Performance contracting has been a standard design/build tool in the energy efficiency 

industry since the 1970s23 and most states have the ESCO infrastructure to support these 

agreements. There is no single, precise definition of what a performance contract is and 

how it is financed24. However, most agreements are turnkey service solutions 

including:25

1. Investment grade audits 

2. Engineering 

3. Construction 

4. Financing 

5. Commissioning or retrocommissioning 

6. Operation and maintenance for the term of the contract 

7. Long-term measurement and verification 

ESCOs often offer complete packages of measures including energy efficiency, 

renewable energy, and onsite distributed generation technologies that fit the needs of the 

client. 

Performance contracts are self-financing, meaning that the capital, labor, and service 

costs are paid through the dollars saved. Financing usually comes from third party 

sources, or a collection of sources, which expands the impact of the investment dollars. 

Figure 1 below explains the basic mechanism. Repayment methods can differ 

significantly, however, and should be considered carefully as the contract is being 

developed. Three basic financing models can be considered for guidance: 

 Guaranteed cost savings means the contracting organization receives a 

guaranteed amount of the saved dollars and the ESCO gets the rest; 

 

22 ENERGY STAR, “Chapter 4: Financing”, Building Upgrade Manual, 2008 Edition. Available at 

www.energystar.gov/BldgManual. (accessed 7. July 2009) 23 Energy Service Coalition “What is Energy Performance Contracting? Available at 

http://www.energyservicescoalition.org/resources/whatis.htm (accessed 7. July 2009) 

24 As with any contract, it is critical that those entering into a performance contract fully understand the 

terms of the agreement. 

25 ENERGY STAR (WebEx) “Maximize Stimulus Funding with Performance Contracting and ENERGY 

STAR” available at https://energystar.webex.com/tc0500l/trainingcenter/record/recordAction.do?

siteurl=energystar&recordingID=31465132&actionType=Info&tcRecordingLink=Yes (accessed 7. July 2009) 

27
 Shared savings is designed so that the contracting organization and the ESCO 

split the dollar savings according to a percentage, such as 60/40; and 

 Paid-from savings means the ESCO receives a guaranteed amount of savings 

dollars and the contracting organization gets the rest.26 

Figure 1: Performance Contract Repayment Mechanism and 

Effect on Customer Bill 

Source: Adapted from ENERGY STAR, “Performance Contracting: 

ENERGY STAR Monthly Partner Web Conference” February 21, 2007. Available at 

http://www.energystar.gov/ia/business/networking/presentations/Feb07_Performance_Contracting.pdf 

Examples of Successful Performance Contracts in Public Buildings 

Metro Louisville 

Metro Louisville is the local government for the city of Louisville, Kentucky and 

Jefferson County. It has been an ENERGY STAR partner since 2007 and has worked to 

benchmark its 150+ buildings using Portfolio Manager. ENERGY STAR tools are simple 

to understand and use, and are widely recognized by constituents. Through its 

benchmarking exercises, it became clear that the facilities were in need of energy system 

upgrades. Under the leadership of Mayor Jerry Abramson, Metro Louisville developed a 

request for proposal (RFP) for an Energy Performance Contract to improve the efficiency 

of 27 municipal properties. Since the staff and constituents were familiar with ENERGY 

STAR tools, Metro Louisville included specific language in the RFP that would ensure 

the chosen contractor would continue to use Portfolio Manager and other tools such as 

the Cash Flow Opportunity calculator. They found that respondents to the RFP were 

already leveraging ENERGY STAR tools in their projects. In March 2009, Metro 

 

26 ENERGY STAR, “Chapter 4: Financing”, Building Upgrade Manual, 2008 Edition. Available at 

www.energystar.gov/BldgManual. (accessed 7. July 2009) 

28
Louisville chose Johnson Controls to be its ESCO. The city planned to break ground on 

several projects in August 2009.27

University of Missouri, Kansas City 

The University of Missouri in Kansas City (UMKC) contracted with the ESCO Burns & 

McDonald to complete the 15-year Guaranteed Energy Savings Program. The contract 

focuses on 27 buildings covering over two million square feet. Identified measures 

included: Design and construction of a new central chilled water plant; variable flow, 

occupancy based fume hood exhaust controls; high efficiency lighting retrofits; chiller 

replacement for the medical school; variable frequency drives and high efficiency motors 

installed on fans and pumps; convert constant volume air handlers to Variable Air 

Volume; low-flow plumbing retrofits; steam leak surveys; expand and enhance energy 

management system controls and reporting capabilities; and assist in hiring an Energy 

Resource Manager for UMKC to enhance and discover additional sources of energy 

savings. The total cost of the contract was $19.4 million, to be paid back through energy 

savings. Annual energy savings are estimated to be $1.6 million, which means that the 

contract will provide positive cash flow for the University over the 15-year contract.28

Additional Performance Contracting Resources 

Please follow these links for additional information on performance contracting: 

 National Association of Energy Service Companies: www.naesco.org

 Energy Service Coalition “What is Energy Performance Contracting? Available at 

http://www.energyservicescoalition.org/resources/whatis.htm

 ENERGY STAR (WebEx) “Maximize Stimulus Funding with Performance 

Contracting and ENERGY STAR” available at 

https://energystar.webex.com/tc0500l/trainingcenter/record/recordAction.do?siteurl=e

nergystar&recordingID=31465132&actionType=Info&tcRecordingLink=Yes

 ENERGY STAR, “Chapter 4: Financing”, Building Upgrade Manual, 2008 Edition.

Available at www.energystar.gov/BldgManual. 

3-B: Training Needs and Resources 

The Planning Guide provided estimates of the number of new jobs that each RDEE Program 

could create. This section provides information on the skill levels, relevant certifications, and 

training needed for these new jobs. State and local governments implementing RDEE programs 

can use this information as a starting point for building relationships with key trade allies and 

 

27 ENERGY STAR (WebEx) “Maximize Stimulus Funding with Performance Contracting and ENERGY 

STAR” available at 

https://energystar.webex.com/tc0500l/trainingcenter/record/recordAction.do?siteurl=energystar&recordi

ngID=31465132&actionType=Info&tcRecordingLink=Yes (accessed 7. July 2009) 

28 National Association of Energy Service Companies (case study) “University of Missouri, Kansas City” 

available at http://www.naesco.org/resources/casestudies/documents/UMKC.pdf (accessed 7. July 2009) 

29
other program stakeholders. These relationships are often integral to supporting successful 

programs that create quality jobs for individuals and achieve energy savings. 

The necessary certifications, training infrastructure, worker readiness, and other factors 

will vary from state to state. Depending on what the state has already accomplished with 

past energy efficiency programs, new ARRA programs should take advantage of the 

existing local infrastructure of trade allies, including contractors, vendors, installers, 

auditors, and other skilled professionals. It is also advantageous to coordinate with 

utilities, which may have established efficiency programs in place. Other potential 

partners and/or stakeholders include community-based organizations, state labor 

departments, workforce investment boards, and state weatherization program offices. 

This section discusses the three primary categories of training that may be needed for 

each RDEE program: 

1. Program Administrator Training. Training of staff that will oversee and 

administer energy efficiency programs. 

2. Contractor Skills Training. Training of contractors to perform the work called for 

in the energy efficiency programs. 

3. Program-Specific Training. Training of contractors in how to participate in the 

program and receive rebates for work completed (where relevant). 

Each of these categories is discussed below, along with examples and links to Web resources. 

3-B-1: Program Administrator Training 

Program administrators may benefit from training in the processes and best practice 

operations of existing energy efficiency programs delivered by a variety of organizations 

nationwide. The following is a list of organizations that offer national conferences and 

training sessions that may be useful for individuals and organizations implementing 

energy efficiency programs. 

 National Association of State Energy Officials (NASEO) has training resources at 

http://www.naseo.org/. 

 Affordable Comfort, Inc. (ACI) at http://www.affordablecomfort.org/ hosts national 

and regional conferences and additional workshops. 

 American Council for an Energy-efficient Economy (ACEEE) hosts industry 

conferences throughout the year. Events are listed at 

http://www.aceee.org/pubsmeetings/index.htm. 

 Association of Energy Services Professionals’ (AESP) training site is at 

http://aesp.org/calendar.cfm. These trainings are more geared for program managers or 

consultants as opposed to in-building or in-home contractors. 

 National Association for State Community Services Programs (NASCSP) events and 

list of partner events at http://www.nascsp.org/events.htm. 

30
 ENERGY STAR hosts annual Partner Meetings for Lighting, Appliances, and 

Consumer Electronics. Information is available at 

http://www.energystar.gov/index.cfm?c=partners.pt_meetings.

3-B-2: Contractor Training Resources and Certifications 

The implementation contractors will need trained and possibly certified employees to perform 

the energy efficiency work. Columns D, E, and F in the Tables 5 and 6 below include lists of 

resources for content training and certifications for each of the RDEE programs. 

Contractors will also need training on program policies and procedures, such as how to 

complete incentive applications, track progress, and verify data. The information in 

Columns B and C in the Tables 5 and 6 is intended to indicate the duration of time that the 

program administrator (e.g., State Energy Office, County, or City) would need to train an 

organization or individual on how to participate in the program. For most programs, this 

assumes that the contracting organization or individual already has the skills to do the 

work. If this is the case, the program-specific training would only cover items such as 

participation contracts, rebate forms, verification of performance, and other program details 

and policies. Typically programs include the cost of contractor training as a program 

expense, and include the cost of acquiring the diagnostic and analytical tools (temperature 

gauges, light meters, leak detectors, etc.) that the contractor and its field employees use to 

deliver the efficiency services. 

For newer markets, more basic energy efficiency education and training may be needed 

to bring new contractors up to speed. This education and training could cover general 

background on energy efficiency, an introduction to the specific program(s), and the 

details of participation. 

An example of program-specific policies and forms comes from the San Francisco 

Energy Watch (SFEW) program, and is available at 

http://www.sfenergywatch.org/library.html. A sample presentation that SFEW uses in a 

120 minute training session for contractors interested in participating in the incentive 

program is included here as a clickable PDF file (double click on the image below to 

open the presentation): 

31
32

Table 5: Contractor Training, Resources, and Certifications (Residential Programs) 

A 

Program 

B 

Program 

Specific 

Training 

Needed 

C 

Notes 

D 

Content Training Resources 

E 

Certifi

Reso

R1. ENERGY STAR Products 0.5 - 1 day 

Expected that 1-2 days of general EE and ENERGY STAR training may also be needed.29

ENERGY STAR Training Center:  Appliances (Link) 

 Lighting (Link) 

R2. Tier 1 Audit and Direct Install 

0.5 - 1 day 

program training; 

1 - 3 days skills 

training 

Expect that the program will deliver training on how to perform "easy audits" 

 ENERGY STAR Air Seal and 

Insulate Contractor Resource (Link) and consumer education 

(Link) 

 Home Energy Audits (Link) 

 Example Training Program – 

Minnesota Office of Energy Security (Link) 

 Example Training Program – 

Pacific Gas & Electric “Residential Energy Use- Where Do the Dollars Go?” (Link) 

 Building Perform List of trainers a

information (Link

RESNET 1. National registr

Energy Rater T(Link) 

2. Upcoming trainin

R3. Home Performance with ENERGY STAR 0.5 - 1 day 

Training for HERS and BPI are each 5 days; Expected that contractors will have certification or required skills upon entering program-specific training. 

HPwES Sponsor Guide (Link) and 

consumer education (Link) 

R4. Efficient HVAC 

0.5 - 1 day 

program training; 

1 - 3 days AC 

Tune-up skills 

training 

AC Tune-up skills training should focus on use of commonly accepted diagnostic tools 

ENERGY STAR Heating and 

Cooling Products training (Link) 

Example Training Program – 

Alabama Power HVAC Training Center (Link) 

Air Conditioners CAmerica – educat(Link) 

29 Note that for this initiative, it is important that not only contractors but also retailers, particularly retail sales staff, receive ENERGY 
33

Table 6: Contractor Training, Resources, and Certifications (Non-residential Programs) 

A 

Program 

B 

Program 

Specific 

Training 

Needed 

C 

Notes 

D 

Content Training 

Resources 

E 

Certification 

Resources 

NR1. Prescriptive 0.5 - 1 day 

Some states may already or may want to consider making contractor's license a requirement. 

 Example Training – Pacific 

Gas & Electric “Commercial Lighting Fundamentals” (Link) 

On-the-job Training 

NR2. Retrocommissioning 1-3 days 

Some states may already or may want to consider making contractor's license a requirement. 

Portland Energy Conservation, Inc. Nationally Recognized Commissioning Experts (Link) 

Building Commissioning Association sponsors webinars and certificatio(Link) 

NR3. Commercial Food Service 0.5 - 1 day 

Expected that 1-2 days of general EE and ENERGY STAR training may also be needed. 

ENERGY STAR Sales Training Presentation (Link) 

NR4. Commercial & Industrial Custom 1-3 days 

Some states may already or may want to consider making contractor's license a requirement. 

Association of Energy Engineers Online Seminars (Link) 

Certified Energy Audito

Exam (Link) 

 Professional Engineer’

License (Link) 
34

Table 6: Contractor Training, Resources, and Certifications (Non-residential Programs), Continued 

A 

Program 

B 

Program 

Specific 

Training 

Needed 

C 

Notes 

D 

Content Training 

Resources 

E 

Certification 

Resources 

NR5. Benchmarking & Performance 1-3 days Training focuses on use of the Portfolio Manager tool. 

ENERGY STAR Portfolio Manager: 1. Live Training webinars 

(Link) 

2. Pre-recorded Sessions 

(Link) 

3. Benchmarking Starter Kit 

(Link) 

Building Owners and Managers Association (BOMA) and the BOMA Energy Efficiency Program (BEEP) offer trainings through local chapters and online trainings. (Link) 

 Building Operator 

Certification Trainings Certifications (Link) 

 Certified Energy Mana

Trainings and Certifica(Link) 

 Professional Engineer’

License (Link) 

 LEED Accredited 

Professional (Link) 

NR6. On-Site Energy Manager 1-5 days 

Initial workers will be program certified, but this could lead to becoming a Certified Energy Manager (CEM). 

 Example Program – Puget 

Sound Energy’s Conservation Resource Manager (Link) 

 ENERGY STAR 

Guidelines for Energy Management (Link) 

 Building Operator 

Certification Trainings Certifications (Link) 

 Certified Energy Mana

Trainings and Certifica(Link) 
3-C: Marketing Strategies 

Several conditions need to be met for an energy efficiency program to be successful. 

Three of the most essential conditions are: 

 Determine if there is sufficient market potential for the products and services offered 

by the program. Market analysis should have been considered in the planning phase 

before the commitment was made to focus efficiency efforts on a particular customer 

segment and/or efficiency measure(s). 

 The program must be cost-effective from both the program administrator’s and 

participant’s perspectives. This too should have been evaluated (prospectively) in the 

process of deciding which efficiency programs to offer. 

 Target audiences must know about the program, understand the advantages of 

participating in the program, and make an affirmative decision to participate. 

Marketing fulfills this third condition of a successful program. 

The information in this section is intended to help states and local governments identify 

basic marketing strategies and tactics. The key components of planning for successful, 

cost-effective energy efficiency program marketing are reviewed, including researching 

and defining target markets, illustrative marketing strategies and tactics, and typical 

program marketing costs. Chapters 4 and 5 provide program-specific illustrative 

marketing plans for select residential and non-residential RDEE programs. 

3-C-1: Researching and Defining Target Markets 

Successful program marketing requires a clear understanding of target audiences, 

including both end-users (e.g., homeowners and businesses) and market actors, or “trade 

allies” such as builders, developers, installers, contractors, equipment suppliers, 

architects, engineers, retailers, etc. Ideally, this understanding comes through market 

research on the saturation of energy-efficient technologies and services, as well as 

research on local demographics, housing stock, and economic activity. Since states and 

local governments may lack detailed data of this nature, some high level guidance has 

been provided here for planning purposes. 

The program snapshots in Chapters 4 and 5 include target markets for each program. For 

example, the target market for Home Performance with ENERGY STAR® (HPwES) is 

typically homeowners with homes at least 15 years old. An HPwES marketing campaign 

will usually focus its tactics on this group. But there are other key market actors 

important in moving a successful HPwES program, most notably home performance 

contractors that have evolved from home repair, renovation, and building contractors. 

Naturally, the program must also take steps to recruit and train members of this business 

community. Primary target markets for each program, as well as key trade ally target 

markets are summarized in Table 7. 

35
Table 7: Program Target Audiences 

RDEE Program Primary Target Markets

Key Market

Actors/Trade

Allies

RESIDENTIAL

R1. ENERGY STAR Products Homeowners and renters Retailers

R2. Easy Audit and Direct Install Homeowners Performance

contractors

R3. HPwES Typically homeowners who own homes

that are 15 years or older

Performance

contractors

R4. Efficient Heating and Cooling Homeowners with CACs and furnaces HVAC contractors

NON‐RESIDENTIAL

NR1. Prescriptive Commercial, institutional, and industrial

customers

Retailers;

installation

contractors

NR2. Retrocommissioning

Business owners and building managers

with commercial facilities that are large

and/or particularly energy intensive

Commissioning

providers

NR3. Commercial Food Service Restaurant owners and managers

Food service

suppliers and

distributors

NR4. Custom

Medium and large commercial, industrial,

and institutional customers

Retailers;

installation

contractors

NR5. Commercial Benchmarking and

Performance

Business owners and building managers

with commercial facilities that are large

and/or particularly energy intensive

Energy service

professionals

NR6. On‐Site Energy Manager

Business owners and building managers  

with commercial facilities that are large

and/or particularly energy intensive

Energy service

professionals

In the section below, illustrative marketing strategies and tactics that have been used to 

successfully reach each of these target markets are provided. 

36
3-C-2: Adopting Key Marketing Strategies 

There is a range of marketing strategies and associated tactics that successful energy 

efficiency programs have used to reach prospective participants. The strategies and 

tactics below are drawn from program literature and experience; they are not meant to 

provide an exhaustive list nor are they necessarily required for the success of a particular 

program. The strategies and tactics best suited 

for each program depend in part on the unique 

circumstances of the state or local government 

administering the program. 

The Importance of Program Web Pages 

One strategy that is found in most, if not all, 

successful energy efficiency programs is the 

creation of an online presence. More 

specifically, an online presence means an 

“energy efficiency landing page” from which 

Web site visitors can easily navigate to 

appropriate program Web pages. Examples of 

such a landing page include the following: 

 Wisconsin Focus on Energy. 

www.focusonenergy.com

 New York State Energy and Research 

Development Authority.

www.getenergysmart.org 

 Pacific Gas & Electric, Residential Programs. 

www.pge.com/myhome/saveenergymoney/

energysavingprograms

 Oncor Electric. 

www.oncor.com/electricity/teem

A well-designed program Web page can have 

a significant influence on program 

participation, making it easy for target 

audiences to find and act on program 

information. For many successful program 

administrators, the main purpose of most of 

their marketing collateral is to drive potential 

participants to the program Web site. One of 

the advantages of Web sites is that they can 

be updated on a regular basis at relatively low 

cost, while printed materials can be costly 

and time-consuming to keep current. The 

program sponsor’s Web site can be used as 

an entry-point for customers to access 

contractors’ efficiency services; in this case 

the Web site needs to validate and explain 

the role of contractors in energy efficiency 

service delivery. 

 Creating an on-line presence. Illustrative 

tactics include:

– Program Web pages (see call-out box at 

right) 

– Ads on local Web sites 

– Keyword-targeted text ads 

(e.g., Google AdWords) 

– Email newsletter 

 Reaching out through the mass media. 

Illustrative tactics include: 

– Radio advertising/news or talk radio spots 

– Newspaper/local magazine ads 

– TV advertising 

– Feature story opportunities (on TV news) 

– Press releases and proactive media 

relations 

– Press conferences with key political 

figures (e.g., mayors, governors) 

– School events 

 Marketing directly to primary target 

audiences. Illustrative tactics include: 

– Direct mail 

– Door hangers 

– Bill stuffers 

– PSAs or Ads in trade publications 

– In-store/retail point-of-purchase (POP) 

displays 

– Collateral (stickers, pens, magnets, 

window clings, etc.) 

– Community event attendance 

37
 Marketing directly to trade allies/contractors. Illustrative tactics include: 

– Contractor trainings 

– Phone (contractors/trade ally contacts) 

– Vendor breakfasts/workshops 

– Ads in trade publications 

– Attending trade shows 

– Vendor incentives (e.g., recognition, awards, listing on Web site, etc.) 

3-C-3: Illustrative Program Costs 

Program marketing costs vary considerably depending on current market saturation of 

energy efficiency products and services, geographic distribution of eligible populations, 

and other factors. Residential program marketing budgets are typically 10-15% of total 

program budgets (for example, a $5 million ENERGY STAR qualified appliance 

replacement program might spend half a million dollars or more on marketing and 

customer education), whereas non-residential market budgets are usually lower, in the 

range of 3-10% of total costs. Residential programs generally require larger marketing 

budgets because participants are often more difficult to reach, and use more mass media 

advertising and public relations efforts to reach target customers. For both residential and 

non-residential programs, marketing costs tend to decrease over time as customers’ 

awareness and acceptance of energy efficiency increases; conversely, the proportion of 

program costs dedicated to incentives tends to increase over time. 

Table 8 shows a break-out of typical marketing-related costs of residential and non-residential 

marketing budgets for programs in their first three years of implementation. During this early 

program period, market research and creative development costs can be substantial, though 

ongoing market research is important even to mature programs. Direct mail and mass media 

usually play larger roles in residential programs; whereas contractor/trade ally related 

marketing costs (recruiting and training) are usually more substantial for non-residential 

programs. 

38
Table 8: Illustrative Marketing Budgets 

Marketing Cost Category

Residential

Programs

(% of Total

Marketing

Budget)

Non‐

residential

Programs

(% of Total

Marketing

Budget)

Market Research and Creative Development 15% 15%

Web Related 10% 10%

Mass Media (i.e. Radio, TV & Print) 25% 10%

Direct mail, bill stuffers, etc. 10% 10%

Marketing Collateral (i.e. Brochures, point‐of‐purchase displays) 20% 25%

Recruiting and Training Trade Allies 20% 30%

39
3-D: Tracking and Estimating Results (M&V) 

This section focuses on the steps needed to estimate savings from the individual projects 

that make up a program. These “gross” savings estimates, along with supporting data, 

will likely provide information that ARRA funding recipients can use in reporting to 

DOE. 

Note that DOE included basic reporting requirements in the FOA, but has not yet 

finalized program evaluation methodology for recipients of ARRA funds as of the release 

of this Toolkit. Links to the DOE guidelines will be added as they become available. 

To estimate project and program savings in a systematic way, program administrators 

typically undertake the three steps discussed in this section: 

 Tracking project and program data. Program administrators need a way to keep track of 

the key project and program activities. A comprehensive database allows them to track data 

on participants, equipment installations, energy savings, financial/incentive management, 

and cost effectiveness, and provides a record for third party review if needed. 

 Estimating savings. A well-documented estimate of project and program savings is 

critical to project financiers and, if appropriate, regulators. There are two main 

categories of project savings estimation techniques: deemed and calculated savings. 

– Deemed savings. These are specified savings rates, typically applied to efficiency 

measures that have been used widely and for which savings have been well documented. 

Deemed savings rates are generally accepted by state regulatory agencies. 

– Calculated or “custom” savings. As the name implies, these are calculated savings 

rates, often developed by an engineer based on technical information about the 

efficiency measures. Calculated savings are needed when efficiency measures are 

tailored for specific facilities or applications. 

 Quality control. Procedures for checking major project and program components, 

such as applications and project installations, allow program administrators to catch 

problems, improve program effectiveness, and increase confidence in the results. 

3-D-1: Tracking Project and Program Data 

A tracking database is essential for collecting, analyzing, and reporting key data on 

program performance, participant information, equipment installations, energy savings, 

financial/incentive management, and cost effectiveness. The database ideally accounts for 

all program activities associated with reported energy and demand savings. The items 

listed below are illustrative of the typical types of information collected on energy 

efficiency projects in program tracking databases. Program-specific tracking 

recommendations are included in each RDEE program snapshot in Chapters 4 and 5. 

Typical energy efficiency project tracking items include: 

 Unique participant ID 

 Participant contact information 

40
 Customer acquisition source (e.g., advertising, phone recruiting, public booth, retail 

vendor, etc.) 

 Measures installed and their anticipated savings 

 Field measurements taken by contractors before and after the work 

 Basic characteristics of the home or facility where the work was performed 

 Participant business NAICS code 

 HVAC contractor name and contact information 

 Other partners or allies involved (e.g., retail appliance vendor) 

 For each project: 

– Unique project ID 

– Measures installed 

– Project incentive amount 

– Anticipated project savings 

– Project audit/verification status and date 

 Pre- and post-project ENERGY STAR energy performance rating using ENERGY 

STAR Portfolio Manager (for non-residential facilities) 

3-D-2: Estimating Savings 

There are a variety of methods used for estimating the savings associated with energy 

efficiency projects. This section discusses the two largest categories of savings 

estimation methodologies introduced above: Deemed savings and calculated, or 

“custom,” savings estimation. 

Deemed Savings 

“Deemed savings” is an estimate of the energy and demand savings of certain 

technologies that has been established by a public utilities commission or similar 

regulatory body, or agreed to by other entities. 

Deemed savings, although agreed upon, are not static. Many states have an annual 

review process for deemed savings that takes into account fuel costs, electricity 

generation capital costs, updates to building codes and appliance standards, new marketready energy-efficient technologies, and more precise savings estimation techniques. 

Energy efficiency technologies or measures may be removed from or added to the 

deemed savings database during this process. Typically, new deemed savings values do 

not apply retroactively; that is, if during the annual deemed savings review process a 

deemed savings value for a particular technology changes, that new savings value will 

only apply to program savings estimates going forward. 

Custom Savings Calculations 

Deemed savings are not appropriate for all energy efficiency projects. For many 

commercial and industrial programs, energy efficiency projects may be unique to 

41
particular facilities, involving measures whose performance varies widely from 

application to application. In these cases, program administrators will need facilityspecific data to develop custom savings estimates. For example, a retro-commissioning 

project will need to consider the facility’s operating schedule and other unique 

characteristics in order to estimate project energy and demand savings. Estimating 

savings might require engineering calculations and energy billing analysis. 

RDEE Program Deemed and Calculated Savings 

The RDEE programs require both deemed and calculated savings methods. Table 9 

below shows which project savings estimation techniques are typically used for the types 

of programs in the RDEE Toolkit. This information is also contained in each RDEE 

program snapshot in Chapters 4 and 5. 

Table 9: Typical RDEE Program Savings Calculation Methodologies 

Sector Program(s) Typical Savings

Estimate

Residential

Lighting and

Appliances

R1. ENERGY STAR labeled products.

Rebates, tax incentives, early retirement

Deemed Savings

R2. Tier 1: Energy Audit with Easy Direct

Install Measures (CFLs, weather stripping,

water heater and pipe insulation)

Deemed Savings

R3. Tier 2: Home Performance with ENERGY

STAR

Deemed &

Calculated/Custom

Residential/

Small

Commercial

R4. Efficient HVAC, including SEER rebates,

quality installation, and tune‐up

Deemed &

Calculated/Custom

NR1. Prescriptive (e.g., lighting) Deemed Savings

NR2. Retro‐commissioning Calculated/Custom

NR3. ENERGY STAR Quali fied Commercial

Food Service Equipment Deemed Savings

NR4. Custom (including audits) Calculated/Custom

NR5. Benchmarking and Performance Calculated/Custom

NR6. On‐Site Energy Manager (place and

pay for expert energy manager in key

facilities for 6 months)

Calculated/Custom

Commercial/Government/Schools

Residential

Residential

Retrofit

All

Only a limited number of states have a publicly available database of agreed-upon 

deemed savings estimates. Where such a database does not exist in a particular locality, 

program administrators can look to the deemed savings estimates used in these states as a 

42
starting point for their own estimates. Links to deemed savings data for California, the 

Northwest, Texas, and Connecticut are listed below for reference, as is a link to the 

International Performance Measurement and Verification Protocol, which describes 

general methodologies for calculating measure savings: 

 CA Database for Energy Efficiency Resources (DEER). www.deeresources.com. 

Extensive, routinely updated database of measure characteristics, savings and costs. 

 Northwest Power and Conservation Council. Regional Technical Forum, 

www.nwcouncil.org/comments/default.asp. Measure data for the Northwest region. 

 Public Utilities Commission of Texas (PUCT). 

www.puc.state.tx.us/electric/projects/22241/DeemedSavings_final.pdf. Deemed 

savings values approved by the PUCT. 

 Connecticut Energy Efficiency Fund. Program Savings Documentation for CT Power & 

Light and United Illuminating, 

www.ctsavesenergy.org/files/Final%202008%20Program%20Savings%20Document0.pdf. 

 International Performance Measurement and Verification Protocol. www.evoworld.org/index.php?option=com_philaform&form_id=37&Itemid=1. Standard 

practice methods for estimating measure savings. Methods contained therein or 

equivalent can be used for estimating measure savings. 

3-D-3: Quality Control

Quality Assurance/Quality Control (QA/QC) activities are designed to audit, both 

internally and independently, the actual level of savings delivered, and to maximize 

savings achieved for the given program budget. Discussed below are two common 

QA/QC procedures: 

 Review of applications from prospective participants. 

 Inspection of project installations, both before and after completion. 

Project Application Review 

Most programs require an application process for program participants to receive incentives; 

therefore, thorough review of participant applications provides an important and early 

opportunity to detect the potential for program errors, contractor misconduct or fraud, and 

other issues that can affect program success. Program process evaluations show consistently 

that timely and accurate payment of incentives is one of the most important satisfaction 

criteria for program participants; thus, it is also important to expedite payments as quickly as 

is prudent. Table 10 presents an illustrative program incentive application review process for 

a non-residential prescriptive program. Larger projects (i.e., where incentives are at least 

$5,000 and that typically require higher participant first-costs) typically go through a preapproval process in which applications undergo preliminary review (in addition to preinspection). If the project does not pass pre-approval, the applicant can be notified that the 

program either requires additional information for pre-approval, or that the project will not 

receive a program incentive. 

43
Table 10: Illustrative Incentive Application Review Process 

Stage Application Status

Time frame

(Days) Description

1 Received One to two Application received and logged

2 Pending One to three

Application reviewed for completeness. If incomplete

payment process stops until all information is

received

3 Tech Review Five to

fourteen

Application sent to technical reviewer. If selected for

inspection or incentive is >$25,000 technical review

will include inspection. Application reviewed for

preliminary approval

4 Approved One to two Application received from reviewer for payment

authorization in tracking system

5 Incentive check

authorized

One to four Payment authorization sent to Accounts Payable  for

incentive check to be issued

6 Paid One to three Incentive check mailed to Participant

Total Time 1.5‐4 weeks

Pre/Post Installation Inspections 

Inspections both before and after installation of efficiency measures are key to program 

quality assurance. To keep costs reasonable, program administrators may want to 

conduct pre-project inspections for all non-residential energy efficiency projects above a 

certain dollar value (e.g., $5,000), and post-project inspections for all projects above a 

higher dollar threshold (e.g., $25,000). All other residential and small non-residential 

projects could then be inspected using statistically valid sampling methods, to produce 

accurate results that can be safely extrapolated across the entire group of like customers 

in the energy efficiency program. 

In general, inspections cover the following aspects of a project: 

 A pre-installation inspection verifies the existing baseline equipment and compares 

line by line the unit numbers in the customer’s application. 

 A post-installation inspection verifies all equipment counts, compares the description 

and model numbers on the application with what was actually installed, and ensures 

that all equipment is fully operational. 

44
3-D-4: Resources 

This Implementation Guide has only touched on the major steps involved in documenting 

the results of RDEE. Two more comprehensive resources program administrators can 

draw upon in developing program policies and procedures for this important aspect of 

efficiency program design and implementation are listed below. As stated above, the DOE 

is still in the process of developing program evaluation guidelines for ARRA energy 

efficiency funding. 

 National Action Plan for Energy Efficiency (2007). Model Energy Efficiency Project 

Impact Evaluation Guide. Prepared by Steven R. Schiller, Schiller Consulting, Inc., 

www.epa.gov/eeactionplan. 

 U.S. EPA State Clean Energy and Climate Program (2009). Clean Energy Lead by 

Example Guide: Strategies, Resources, and Action Steps for State Programs. Prepared 

by Joanna Pratt and Joe Donahue, Stratus Consulting, Inc., 

http://www.epa.gov/cleanenergy/energy-programs/state-and-local/index.html.

45
46

4. Residential RDEE Program Snapshots and Templates
4-A: Residential RDEE Programs 

This section contains program-specific planning and implementation ramp-up materials 

for Residential RDEE programs, including: 

A. Snapshots for the following RDEE programs30: 

R1. ENERGY STAR® Labeled Products 

R2. Tier 1 Residential Audit and Direct Install 

R3. Home Performance with ENERGY STAR® (HPwES) 

R4. Efficient HVAC 

B. Marketing Strategies and Tactics for Residential Programs, including marketing plan 

templates for the Efficient HVAC and HPwES programs. These are intended to help 

program administrators and managers create marketing plans for any of the 

residential energy efficiency programs presented in the Toolkit. 

C. An illustrative Request for Proposal (RFP) for third party implementation of a 

residential program (Home Performance with ENERGY STAR® or HPwES). This 

may be used by state energy offices or other program administrators to help develop 

their own RFPs for soliciting proposals for implementation of the HPwES or other 

energy efficiency programs. 

 

30 The snapshots have been updated and expanded since they were originally released in May 2009 as part 

of the first version of the Planning Guide. 

47
R1: ENERGY STAR® Labeled Products

48
PROGRAM R1. ENERGY STAR® Labeled Products

Program 

Summary 

The objective of this program is to increase awareness and sales of efficient lighting and appliances to 

residential and small commercial customers. The program offers customers the opportunity to purchase, 

largely through retail locations, a variety of discounted products that are ENERGY STAR qualified or better. 

The most effective programs involve either retailer/supplier mark-downs, where an agreement is reached 

with retailers to stock reduced-priced products and rebates are paid to the retailer/supplier after the 

product is purchased by end-use customers, and/or manufacturer buy-downs, where bulk product is 

purchased directly from manufacturers and delivered to retailers/suppliers at reduced prices. Financial 

incentives should be targeted to efficient products where there is a price premium over the standard 

efficiency counterpart, where incremental energy efficiency benefits can justify incentive payments, and 

where market saturation for the efficient product is low relative to the standard efficiency options. Good 

candidates for incentives include lighting fixtures, water heaters, commercial solid state lighting, and 

commercial food service equipment. ENERGY STAR qualified enterprise servers is also a good option 

and this specification went into effect in May 2009. 

Incentives for products such as refrigerators, clothes washers, and CFLs need to be evaluated carefully 

based on local market conditions and may require advanced targeting strategies. For example, the 

Energy Independence and Security Act of 2007 established minimum efficiency requirements for general 

service lamps effective in 2012, which will essentially phase out general-service incandescent lighting for 

most applications. In addition, in some localities and customer segments, market saturation for specific 

high-efficiency products may already be quite high. Strategies such as targeting certain market channels 

(e.g., grocery) and specialty CFL applications should be considered to ensure energy savings can be 

attributed to the program. 

Leveraging national ENERGY STAR campaigns such as “Change the World, Start with ENERGY 

STAR” boosts program participation and cost-effectiveness. 

This program should also leverage the Federal ENERGY STAR Appliance Rebate Program. 

Note: US DOE issued a Funding Opportunity Announcement (FOA) for the State ENERGY STAR 

Appliance Rebate Program on July 14, 2009. The purpose of this FOA is to award formula grants to 

U.S. states, territories, and the District of Columbia to provide American Recovery and Reinvestment Act 

funding for the establishment and administration of State Appliance Rebate Programs. The initial 

application (SF-424) was due to DOE by August 15, 2009. The comprehensive application is due by 

October 15, 2009. All comprehensive applications must be submitted through www.fedconnect.net. The 

FOA (DE-FOA-0000119) is available at: 

http://www07.grants.gov/search/search.do?oppId=48463&mode=VIEW. 

Target Market This program targets all residential and small commercial customers, though program sponsors may 

elect to target participants with certain demographic characteristics, or whose energy consumption 

exceeds established metrics to tailor the program to their specific service areas. 

49
PROGRAM R1. ENERGY STAR® Labeled Products

Infrastructure 

Requirements 

The implementation of this program will require additional infrastructure including: 

 A process for recruiting retailers/suppliers and manufacturers and providing training as necessary 

 A process for allocating midstream and upstream rebates to retailers/suppliers and manufacturers 

 A customer rebate process for distributing any consumer-direct incentives 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 Processes for marketing and education, including mass-market television, radio, internet, point-ofpurchase and in-store displays, bill inserts, an informational Web site, product demonstrations, and 

on-site events (e.g. bulb exchanges) among other activities 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 A process for handling proper disposal of CFLs (to avoid mercury ending up in landfills) 

 A process for providing customer support including a call center and online help. 

Staffing 

Requirements 

& Job Creation 

Program Administration 

ENERGY STAR Products programs are often a large part of a program sponsor’s portfolio. 

Accordingly, they require a significant staff. At a minimum, one program manager is required, plus 4-5 

FTEs to assist with retailer/supplier and manufacturer recruitment, training, sales, customer support, 

program tracking, and other administrative tasks. 

Job Creation 

This program develops jobs in the manufacturing and retail/supplier sectors. Additional jobs will be 

created in related fields as a result of program spending through direct and indirect jobs as well as 

economic effects resulting from homeowners’ and businesses having additional money that would 

otherwise go toward utility bills. In total, expect from 5 to 11 jobs to result per million dollars spent on 

this program. 

50
PROGRAM R1. ENERGY STAR® Labeled Products

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets contractors 

must have to perform program services. The second is program specific training; that is, training carried 

out by the program administrator and/or third party implementation contractor on program policies and 

procedures. Sometimes, program-specific training also involves technical training. 

Retailer & Contractor Technical Training Resources31

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

ENERGY STAR Training Center: 

 Appliances (Link) 

 Lighting (Link) 

N/A Low-Medium 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day 

Expected that 1-2 days of 

general EE and ENERGY STAR 

training may also be needed. 

 

31 Note that for this initiative, it is important that not only contractors but also retailers, particularly retail 

sales staff, receive ENERGY STAR training. 

51
PROGRAM R1. ENERGY STAR® Labeled Products

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to adjust to available funding levels. 

The table below illustrates typical activities and associated timeframes. It does not include time that 

may be needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design and Creative

Coordinate with retailers on necessary marketing materials

Develop in-store marketing materials

Develop Program Web site

Task 2: Program Delivery Activities

Recruit manufacturers and retailers

Retail site visits to ensure discounted ENERGY STAR products on 

retailer floor

Implement recycling plan (CFLs and/or appliances)

Task 3: Marketing Program Execution and Delivery

Initiate marketing to suppliers and retailers

Initiate marketing through retail outlets

Online Promotion (website development and/or search key words)

Media Promotions (TV, Radio, print media)

Change the World, Start with ENERGY STAR campaign participation

Earth Day Promotions (April 22nd)

Task 4: Incentive Application Validation and Processing 

Develop incentive/financing plan (upstream/midstream to 

manufacturers/retailers and/or consumer rebates)

Task 5: Tracking Database Design and Set Up

Develop retail partner data submission process

Begin collecting sales data

Keep monthly reports

Task 6: Customer Support Activities

Develop customer support plan (web communications and/or call 

center)

Implement customer support plan

Task 7: Evaluation, Measurement & Verification (EM & V)

Develop EM&V protocols

Implement EM&V protocols

whenever April 22nd falls in program

Activity Months in Year 1

52
PROGRAM R1. ENERGY STAR® Labeled Products

Illustrative 

Program 

Performance 

Energy Savings 

All the lighting products and most of the appliances rebated through this program have negligible 

sensitivity to weather in terms of performance. However, saturation of ENERGY STAR products is 

highly variable across the country. Therefore, incremental savings will also be highly variable. In order 

to develop deemed savings values for ENERGY STAR products in your area, we recommend 

conducting a comprehensive market saturation and baseline use study. This need not delay program 

implementation however. For planning purposes, the numbers provided in this guide may be used as a 

starting place, or you can contact EPA/ENERGY STAR for assistance in determining appropriate 

planning values for incremental measure costs and savings. 

Participation and Budget 

Aggressive upstream CFL programs show that about 350,000 to 450,000 bulbs can be distributed per 

million dollars of program expenditure. The illustrative impacts below contain rebates for CFLs and 

lighting fixtures, the latter of which have a higher cost per unit. The program impacts below are drawn 

from recently developed quick-start programs on the East Coast and Northeast. CFLs are typically 

purchased in multi-packs, so the number of individual CFL units sold exceeds the number of 

households (participants) in many cases. 

Program budgets are very sensitive to market size, the types of products rebated, and the program 

delivery strategy (downstream/customer coupons, midstream/retailer, or upstream/manufacturer). 

Incentives vary considerably as well. CFL rebates are generally about $1-$2 CFL bulb (for a 60W 

equivalent), $20 per fixture, and between $30 and $100 per appliance. Budgets for an ENERGY STAR 

products program are easily scaled to meet demand. An illustrative program budget is shown below: 

1 2 3Cumul

Lighting Products (CFLs, Fixtures)           1,000,000           1,000,000           1,000,000       3,000,000

New ES Appliances                 10,000                 20,000                 30,000             60,000

New Appliance Participation Rate 7% 14% 20% 20.0%

Lighting Participation rate 3% 7% 14% 23.6%

Jobs Created                         37                         97                       162                   296

MBtu Saved 359,000                                893,000            1,777,000        3,029,000

Program Cost $        3,700,000 $     10,800,000 $     20,200,000 $34,700,000

Average

Avg Cost per Lighting Participant $13 $17 $16 $16

Avg Cost per Appliance Participant $83 $67 $61 $67

Jobs per $1M                         10                            9                            8                        9

Per Unit Source MBtu Saved                        0.4                        0.9                        1.7                    1.0

Source Mbtu saved per $1,000 97                                                  83                         88                     87

Year

ative

(Note that the lighting products are primarily retrofit products, so the participation rate is cumulative; 

the appliance participation rate is based on the number of new appliances purchased each year, 

therefore is not cumulative.) 

53
PROGRAM R1. ENERGY STAR® Labeled Products

EM&V 

Support 

Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Number, type and quantity of products that receive incentives and their anticipated savings 

 Tracking products and reporting accomplishments is completed through agreements reached with 

retailers, manufacturers and suppliers. 

Savings 

Savings are often based on deemed savings values, as the savings impacts of products in this program 

are well-researched and are not weather sensitive. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators. It typically focuses on establishing the kW, kWh, and Btus saved by the program through a 

more rigorous evaluation of the equipment purchased, its installation rate, actual usage characteristics, 

and whether or not the owner would have undertaken the work even in the absence of the program, to 

ensure that the results can in fact be attributed to the program. Methods used vary widely based upon 

the need for precision in the estimates and the perspective of the program sponsor or regulators. In 

general, EM&V costs range between 1% and 8% of the overall program budget, and are most typically 

around 3-4%. 

Resources and 

Assistance  ENERGY STAR Lighting: http://www.energystar.gov/lighting

 CFLs and mercury: www.energystar.gov/index.cfm?c=cfls.pr_cfls_mercury

 ENERGY STAR Appliances: www.energystar.gov/products

 ACEEE’s Compendium of Champions, Lighting and Appliances category. (Publication U081): 

http://aceee.org/pubs/u081/res-light-app.pdf

54
PROGRAM R1. ENERGY STAR® Labeled Products

Program 

Characteristics 

Summary 

An ENERGY STAR products program is an extremely good use for stimulus funding. Its characteristics 

relative to the key criteria identified previously include: 

1. Impact on Jobs. An ENERGY STAR products program provides moderate employment benefits 

when weighed against other energy efficiency program options. It does not employ contractors to 

perform retrofit or installation work or entail significant technical skills training. Increased jobs come 

through direct employment of program administrators and implementation contractors, and the 

increased marketing, training, and sales activity that they generate. Indirect and induced benefits are 

seen at manufacturers and retailers, and through economic multipliers as individuals and businesses 

have reduced utility bills. 

2. Collaboration and Leverage of Funds. An ENERGY STAR products program provides an 

excellent opportunity to leverage EPA/DOE resources for ENERGY STAR rated products rebated 

through the program, and to collaborate nationally with utility companies, state and local agencies, 

retailers, manufacturers, and consulting communities. In almost every location in the country where 

energy efficiency programs exist, an ENERGY STAR products program, or similar program exists, 

and these programs should be leveraged for expansion and incorporation of additional funding. 

ENERGY STAR has developed significant resources to aid in program design, implementation, and 

marketing; has developed relationships with the major retailers and manufacturers that are 

leveraged by energy efficiency programs nationwide; convenes one major lighting conference and 

one major appliances conference each year and has started an annual electronics meeting with 

partners as well; and boasts strong recognition of the ENERGY STAR brand. 

3. Significance of Program Savings. ENERGY STAR products programs yield significant savings 

over a relatively short timeframe. This program is very easy to ramp-up quickly to significant scale. 

For states that are newer to energy efficiency, this program is a must-do to achieve quick energy 

savings and stimulate the market for other energy efficiency offerings. 

4. Cost of Savings. ENERGY STAR products programs are typically among the most cost-effective in 

an energy efficiency portfolio. The program requires low overhead while paying incentives for a 

large volume of projects. There are many examples of best practices and experienced 

implementation firms that have implemented large quick-start products programs in the past few 

years, and that competition has driven the implementation costs down. Participation is very simple 

for customers, and requires relatively little up-front cost on their behalf. 

5. Sustainability and Market Transformation. Through broad marketing, outreach, and education 

components, the ENERGY STAR products program creates a more educated and aware public on 

the benefits and importance of energy efficiency. Simple actions by participants such as, the 

purchase of a relatively inexpensive product such as a CFL can open those participants to more 

opportunities through other programs. The manufacturers and retailers, who are participating in 

these programs, transform their purchasing and stocking patterns to benefit from the incentives that 

will drive customers to their stores. In areas with energy efficiency programs, experience shows that 

retailers will stock ENERGY STAR models for up to 50% of each rebated product (refrigerators, 

clothes washers, room air conditioners for example). 

55
R2: Tier 1 Energy Audit and Direct Install

56
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Program 

Summary 

Together, the Tier 1 Energy Audit and Direct Install and the Tier 2 Audit program (Home Performance 

with ENERGY STAR®, or HPwES) comprise the Residential Retrofit initiative. These programs work 

with the same pool of contractors and population of homeowners. The primary differences between 

HPwES and Energy Audit and Direct Install are the level of the audit (the Tier 1 program offers a basic, 

visual home energy checkup whereas the HPwES audit is comprehensive and involves diagnostic 

tools) and the measures available for incentives (Tier 1 only offers inexpensive, direct install measures 

whereas HPwES offers a wide range of measures for all end-uses, and at many price points). One 

important goal for Tier 1 Energy Audit and Easy Direct Install is for participants to realize the benefits of 

energy efficiency at little to no cost to them, which can then lead them to participate in more 

comprehensive programs such as HPwES or Residential HVAC, and realize even greater levels of 

savings and benefits. 

This program introduces homeowners to a whole-house approach for reducing energy consumption 

and helps establish and train a network of skilled and credible home energy analysts and contractors. 

These contractors provide quick (visual) home energy checkups for qualified homeowners and directly 

install low-cost measures, such as CFLs, hot water heater wraps, pipe insulation, and low-flow 

showerheads. Some homeowners may follow up with more comprehensive energy efficiency 

improvements, such as air and duct sealing, appliance retrofits, or request a more comprehensive 

energy audit, thus moving to a holistic approach to energy efficiency; these customers should be 

referred to the HPwES program. 

The cost of completing a checkup, including the checkup delivery, measure cost and measure 

installation labor is typically $200-300. Checkups may be offered to homeowners at a subsidized rate 

(e.g., $35-50), with the option that the fee will be waived if the customer pursues installation of the 

identified energy efficiency measures. Programs typically pay contractors $100-150 per checkup. 

Key elements of the program include contractor recruitment, training, and independent verification of a 

sample of homes to verify quality of the work and data collected. 

Target Market This program typically targets homes 15 years or older – this constitutes approximately 80 percent of the 

housing stock nationwide.32 Program sponsors may elect to target participants with certain demographic 

or geographic characteristics, or whose energy consumption exceeds established metrics. 

 

32 U.S. Census Bureau, “American Housing Survey: 2007,” 

www.census.gov/hhes/www/housing/ahs/ahs07/tab1a-1.xls

57
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A process for recruiting and screening qualified performance contractors to participate in the program 

 A process for training, certifying, and monitoring the performance of contractors 

 A standardized process for conducting the checkup and calculating and reporting energy savings to 

the homeowner and to the program 

 A process for marketing the program to homeowners 

 A process for disbursing incentives 

 A process for ensuring that work performed and contractor business practices meet the quality 

standards of the program 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 A process for providing customer support, including a call center and information online about the 

program 

Staffing 

Requirements 

& 

Job Creation 

Program Administration 

Depending on the size of the program, a Tier 1 Audit program requires 2-4 full-time employees. At a minimum, the 

program requires one manager, and one field staff technician for conducting contractor training, providing 

contractor mentoring and verifying projects. Initial phases of the program may require an additional 2-3 staff for a 

period of 6 months to perform start-up activities. As the program grows over time the need for additional technical 

staff for quality assurance purposes and administrative staff for processing jobs and incentives will increase. 

Participating Contractors 

Initial roll-out of the program (0-6 months) typically involves recruiting 3-5 contractors, ideally who have or can 

quickly attain the appropriate certifications from the program (unlike the HPwES program, a certified individual 

does not need to perform the quick energy audits – but the contractor does need to have at least one certified 

individual on staff). While implementation models vary, it might be expected that by the end of the first program 

year, approximately 15 certified contractors will be needed (about a third of contractors will likely be very active, 

a third moderately active, and a third relatively inactive) for each million dollars of program budget, although this 

is very sensitive to the scale of individual contracting organizations and the size of the market. 

Job Creation 

This program helps develop the market for performance contractors and associated trade allies. 

Additional jobs will be created in related fields as a result of program spending. In total, expect from 18 

to 25 jobs to result per million dollars spent on this program. 

58
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

 ENERGY STAR Air Seal and 

Insulate Contractor 

Resource (Link) and 

consumer education (Link) 

 Home Energy Audits (Link) 

 Example Training Program – 

Minnesota Office of Energy 

Security (Link) 

 Example Training Program – 

Pacific Gas & Electric 

“Residential Energy UseWhere Do the Dollars Go?” 

(Link)

 Building Performance 

Institute 

 List of trainers and contact 

information (Link) 

RESNET 

1. National registry of 

Accredited Energy Rater 

Training Providers (Link) 

2. Upcoming trainings (Link) 

Low-Medium 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day 

Expect that the program will deliver 

training on how to perform "easy 

audits". 

59
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The table 

below illustrates typical activities and associated timeframes. It does not include time that may be 

needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design and Creative

Develop marketing plan

Develop program Web site

Task 2: Marketing Materials Execution and Delivery

Launch marketing campaign

Task 3: Participant Recruiting, Training, and Support

Identify/develop training

Identify/recruit contractors

Train/equip/certify contractors

Task 4: Incentive Application Validation and Processing 

Develop consumer and/or contractor incentive/financing plan. 

Consumers typically pay a subsidized rate for a walk through audit. 

Contractors often also receive a subsidy per job.

Task 5: Tracking Database Design and Set Up

Develop results tracking system

Implement results tracking

Task 6: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Task 7: Customer Support Activities

Develop customer support plan (web communications and/or call center)

Implement customer support plan

Task 8: Program Implementation

First job completed

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Source: Adapted from Home Performance with ENERGY STAR® Sponsor Guide, Version 1.0, September 2008.

Activity Months in Year 1

 

60
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Illustrative 

Program 

Performance 

Energy Savings 

Energy savings per home varies widely by climate zone, measures installed, and incentive levels. 

Annual source energy savings reported by program sponsors are in the range of 4 MBtu to 8 MBtu per 

average home33, as illustrated in the table below. 

Electricity 

kWh

Gas 

Therms

Source 

MBtu Electricity kWh

Gas 

Therms

Source 

MBtu

Gas Heated Home 260 30 5.6 260 20 4.6

Electrically Heated Home 9,000,000 0 8.0 6,300,000 0 6.3

Weather Zone

Warm Climates Cool Climates

Participation and Budget 

An aggressive program could reach about 3.5% of eligible homes after three years. An illustrative three 

year participation schedule is shown below. The schedule represents a Tier 1 Audit program run in a 

metro area on the East Coast with about 250,000 eligible homes. Under a non-aggressive scenario, 

participation after three years may be closer to 1-1.5%. 

Illustrative program implementation costs are expected to decline from approximately $1200 per 

completed home in the initial year to $880 per completed home after three years. Costs are dependent 

on a variety of factors, including the fraction of participants that elect to install the direct install 

measures and contractor costs for performing checkups. An illustrative participation schedule and 

budget are shown in the table below. 

1 2 3Cumula

Population of Eligible Homes 250,000                        250,000            250,000               250,000

Participants 1,900                                  3,100                 3,700                   8,700

Participation rate 0.7% 1.2% 1.5% 3.5%

Jobs Created 57                                              68                       59                       184

MBtu Saved 9,500                                15,500               18,500                 43,500

Program Cost 2,280,000 $      $     3,100,000 $     3,256,000 $        8,636,000

Average

Average Cost per Participant $1,200 $1,000 $880 990 $                    

Jobs per $1M 25                                              22                       18                         21

Per Unit Source MBtu Saved                         5                         5                         5                            5

Source Mbtu saved per $1,000 4.2                                            5.0                      5.7                        5.0

Year

tive

 

33 Source Btus assuming an average electric generation heat rate of 10,000 Btu/kWh. 

61
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Unique participant ID 

 Measures installed and their anticipated savings 

 Field measurements of energy usage taken by contractors before and after the work 

 Basic characteristics of the home where the work was performed 

Savings 

As the performance of the measures in this program is typically well-understood, it is expected that 

most measure savings estimates will be deemed values. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators, and typically focuses on establishing the kW, kWh, and Btus saved by the program. This 

typically consists of an evaluation of the existing baseline conditions of a sample of homes, the nature 

of the energy efficiency improvements installed, usage characteristics of the home, and whether or not 

the homeowner would have undertaken some of the efficient actions even in the absence of the 

program to ensure energy savings can be attributed to the program. 

Methods used vary widely based upon the need for precision in the estimates and the perspective of 

the program sponsor or regulators. In general, EM&V costs range between 1% and 8% of the overall 

program budget, and are most typically around 3-4%. 

Resources and 

Assistance  EPA ENERGY STAR Resources for Contractors page: 

www.energystar.gov/index.cfm?c=home_contractors.hm_improvement_contractors_resources

 Building Performance Institute: www.bpi.org

 Residential Energy Services Network: www.natresnet.org

62
PROGRAM R2. Tier 1 Energy Audit and Easy Direct Install 

Program 

Characteristics 

Summary 

Tier 1 Audit is a good use of stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. Given the relative fragmentation of the home contracting industry and the 

comparatively small size of each job, Tier 1 Audit is a training and labor-intensive program; on a 

per-dollar-spent basis, the Residential Retrofit initiative (Tier 1 Audit and HPwES, combined) 

generates more new job opportunities than any other program. The level of skill required to perform 

a home checkup is less than that required to perform a comprehensive home audit for HPwES. 

However, these jobs often entail skills that prepare the employee for a broad range of potential 

future opportunities in the fields of home services and energy efficiency. In addition, residential 

customer bill savings tend to re-circulate in the economy to a greater degree than do savings by 

commercial or industrial customers, and therefore have a greater multiplier effect on jobs and 

economic activity. 

2. Collaboration and Leverage of Funds. Tier 1 Audit provides an excellent opportunity to 

collaborate with EPA/DOE, utility companies, state and local agencies, local trade allies and their 

associations, as well as the building science and consulting communities. With increasing regional 

energy efficiency goals in many portions of the country, utilities may provide an excellent 

opportunity for collaboration, funding, and/or direct implementation of Tier 1 Audit programs. 

3. Significance of Program Savings. Savings from Tier 1 Audits are not as significant as other 

residential initiatives but the potential participant base is very large, consisting of all owner-occupied 

dwellings older than just a few years, and the home energy checkup spurs homeowner interest in 

larger energy efficiency investments. Further, the program also provides an equitable and highly 

visible opportunity for the largest single group of taxpayers to participate in a program and benefit from 

ARRA stimulus dollars. The program can also accommodate the needs of low-income individuals with 

increased incentive levels and other support functions. Further, the potential impact of the program is 

(after the initial introduction) largely scalable relative to the program budget dedicated. 

4. Cost of Savings. Tier 1 Audit is a relatively expensive program due to its requirements for training and 

verification of the work, as well as the need for public education. However, these expenses are also the 

key drivers of the program’s strong performance relative to job creation, quality, and accountability. 

Additionally, audits lay the foundation for potential energy efficiency improvements that can result in 

future energy savings when the improvements are made. 

5. Sustainability and Market Transformation. Through its broad outreach and education 

components, Tier 1 Audit creates a more educated and aware public on the benefits and importance 

of energy efficiency. Participants tend to develop and maintain sensitivity to energy issues and an 

understanding of energy systems and financial payback principles long after their initial contact with 

the program. This can lead customers to future energy investments and behavioral changes beyond 

the Tier 1 Audit program. Similarly, a Tier 1 Audit program seeds a competitive market of 

contractors who develop a variety of business models and approaches. Through competitive 

innovation, these contractors often integrate the Tier 1 Audit services with other services such as 

HVAC service and repair, insulation, and window replacement. 

63
R3: Home Performance with ENERGY STAR® (HPwES) 

64
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Program 

Summary 

Together, the Tier 1 Energy Audit and Direct Install and the Tier 2 Audit program (Home 

Performance with ENERGY STAR, or HPwES) comprise the Residential Retrofit initiative. These 

programs work with the same pool of contractors and population of homeowners. The primary 

differences between HPwES and Energy Audit and Direct Install are the level of the audit (the Tier 1 

program offers a basic, visual home energy checkup whereas the HPwES audit is comprehensive 

and involves diagnostic tools) and the measures available for incentives (Tier 1 only offers 

inexpensive, direct install measures whereas HPwES offers a wide range of measures for all enduses, and at many price points). 

This market-based program motivates homeowners to use highly skilled home energy analysts and 

contractors that offer a whole-house approach for reducing energy use. These contractors provide 

comprehensive energy audits for qualified homeowners and provide incentives from the program 

sponsor (often either rebates and/or low-interest loans) for qualifying energy efficiency projects. 

Typical projects might include: insulation, duct sealing and repair, high-efficiency HVAC systems, 

windows, lighting, and appliances. The energy analysts are usually free to establish their own pricing 

for the audits and subsequent work and to determine their own basic business model (e.g., just 

providing audits, or also providing installation of the efficiency improvements). However, they are 

required to adhere to strict training, engineering, reporting, quality assurance, and other requirements 

set forth by the EPA, DOE, and the program sponsor. 

Incentives to homeowners typically have a value of approximately 10%-20% of the value of the 

improvements, or between $300 and $1,500 (including cash incentives and low-interest financing) 

depending on the measures installed, though some programs have paid much higher rebates for 

projects, on the order of $5,000 or more. A variation of the program called “Assisted Home 

Performance” provides greater levels of incentives for low and moderate income participants. 

Incentives and other support to contractors typically include items such as job completion bonuses 

and cost-sharing for training with existing nationally recognized building performance associations. 

Other key elements of the program include contractor recruitment, training, and mentoring, and 

independent verification of all homes to verify quality of the work and data collected. Extensive 

support in the design and implementation of this program is available from the EPA and DOE in the 

form of a sponsor guide, template program outline, financing guidebook, marketing materials, case 

studies, and other information. 

Note: Some program sponsors elect to roll-out HPwES first as a pilot in selected areas; then, based 

on their experience from the pilot, expand the program to the entire eligible population. 

Target Market HPwES typically targets homes 15 years or older – this constitutes approximately 80 percent of the 

housing stock nationwide.34 Program sponsors may elect to target participants with certain 

demographic characteristics, or whose energy consumption exceeds established metrics. 

 

34 U.S. Census Bureau, “American Housing Survey: 2007,” 

www.census.gov/hhes/www/housing/ahs/ahs07/tab1a-1.xls

65
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A process for recruiting and screening qualified contractors to participate in the program 

 A process for training, certifying, and monitoring the performance of contractors 

 A standardized process for conducting the audit and calculating and reporting energy savings to 

the homeowner and to the program 

 A process for marketing the program to homeowners 

 A process for disbursing incentives 

 A process for ensuring that work performed and contractor business practices meet the quality 

standards of the program 

 A system for tracking and accounting for program results 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 A process for providing customer support, including a call center and information online about the 

program 

Staffing 

Requirements 

& 

Job Creation 

Program Administration 

Depending on the size of the program, HPwES requires at least 2-4 full-time employees. At a minimum, the 

program requires one manager, one part-time staff member for conducting contractor trainings (typically 

available from existing consultants), and one staff member for providing contractor mentoring and verifying 

projects. Initial phases of the program may require an additional 2-3 staff for a period of 6 months to perform 

start-up activities. As the program grows over time the need for additional technical staff for quality assurance 

purposes and administrative staff for processing jobs and incentives will increase. 

Participating Contractors 

Initial roll-out of the program (0-6 months) typically involves recruitment of 3-5 contractors, ideally 

who have or can quickly attain the appropriate certifications from the program. While implementation 

models vary, it might be expected that by the end of the first program year, approximately 15 certified 

contractors will be needed (experience suggests that approximately one third of contractors will be 

very active, a third moderately active, and a third relatively inactive) for each million dollars of 

program budget. However, this assumption is sensitive to the scale of individual contracting 

organizations and the size of the market. 

Job Creation 

In addition to the direct jobs associated with implementing the program, additional jobs are created 

for contractors and others through the incremental equipment, supplies, and installation induced by 

the program, as well as through economic effects resulting from homeowner spending of those 

dollars that would otherwise go toward utility bills. In total, it is estimated that approximately 18 to 25 

jobs will result per million dollars spent by the program. 

66
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

HPwES Sponsor Guide 

(Link) and consumer 

education (Link) 

 Building Performance 

Institute 

 List of trainers and contact 

information (Link) 

RESNET 

1. National registry of 

Accredited Energy Rater 

Training Providers (Link) 

2. Upcoming trainings (Link) 

High 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day 

Training for HERS and BPI are 

each 5 days; Expected that 

contractors will have 

certification or required skills 

upon entering programspecific training.

67
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The 

table below illustrates typical activities and associated timeframes. It does not include time that may 

be needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design and Creative

Task 2: Marketing Materials Execution and Delivery

Task 3: Participant Recruiting, Training, and Support

Develop contractor recruitment and training plan

Train/equip/certify contractors

Task 4: Incentive Application Validation and Processing 

Develop consumer incentive/financing plan. Incentives typically 

cover 10-20% of value of improvements. Cash incentives, lowinterest loans, or on-bill financing are optional incentive formats.

Task 5: Tracking Database Design and Set Up

Develop tracking system. Should include # of participants, the 

measures installed, and anticipated savings. Field 

measurement reports before and after the work and the basic 

housing characteristics should be included.

Consider additional Evaluation, Monitoring & Verification data 

needs such as actual consumption data from utility or 

measurement of program's influence on decision to make 

energy efficiency investments

Implement tracking system

Task 6: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Task 7: Customer Support Activities

Develop customer support plan (web communications and/or 

call center)

Implement customer support plan

Task 8: Program Implementation

First job completed

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

KEY

recommended start date

optional early start date

Source: Adapted from Home Performance with ENERGY STAR® Sponsor Guide, Version 1.0, September 2008; 

Rapid Deployment Energy Efficiency (RDEE) Program Planning Guide, April 3, 2009.

Activity Months in Year 1

68
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Illustrative 

Program 

Performance 

Savings 

Energy savings per home varies widely by climate zone, measures installed, incentive levels, and 

average job size. Annual source energy savings reported by program sponsors are in the range of 34 

MBtu to 66 MBtu per average home35, as illustrated in the table below. 

Electricity

kWh

Gas

Therms

Source

MBtu

Northeast 1,400          400 54

Midwest 1,700          400 57

South 4,600          200 66

West 1,400          200 34

Census Region

Savings

Participation and Budget 

An aggressive HPwES program could reach approximately 1% of eligible homes after three years, 

depending upon the degree of marketing and the ratio between audits conducted and projects 

completed. Under a less aggressive scenario, participation after three years may be closer to 0.025%. 

Illustrative program implementation costs are expected to decline from approximately $7,500 per 

completed home in the initial year to $5,000 per completed home after three years. Reported costs 

vary depending upon the implementation approach taken and degree of participation. An illustrative

participation schedule and budget are shown in the table below. This budget reflects an early 

emphasis on market conditioning, including contractor recruitment and training, as well as marketing. 

[Potential program sponsors are encouraged to consult the resources identified below and/or contact 

the EPA/DOE for assistance in identifying appropriate planning assumptions for their own 

states/cities/counties and anticipated program designs]

1 2 3 Cumulative

Population of Eligible Homes 250,000                            250,000              250,000              250,000

Participants 250                                            750                  1,500                  2,500

Participation rate 0.10% 0.30% 0.60% 1.0%

Jobs Created                        47                      116                      135                      297

MBtu Saved 15,000                                45,000                90,000              150,000

Program Cost 1,875,000 $        $       5,250,000 $       7,500,000 $    14,625,000

Average

Average Cost per Participant $7,500 $7,000 $5,000 5,850 $               

Jobs per $1M                        25                        22                        18                        20

Per Unit Source MBtu Saved                        60                        60                        60                        60

Source Mbtu saved per $1,000 8.0                                              8.6                     12.0                     10.3

Year

 

35 Source Btus assuming an average electric generation heat rate of 10,000 Btu/kWh. 

69
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Unique participant ID 

 Measures installed and their anticipated savings 

 Field measurements taken by contractors before and after the work 

 Basic characteristics of the home where the work was performed 

Savings 

As the performance of the measures in this program is typically well-understood, it is expected that 

most measure savings estimates will be deemed values, although some whole home projects may 

require custom (calculated) savings estimates. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators, and typically focuses on establishing the kW, kWh, and Btus saved by the program 

through an evaluation of the existing baseline conditions of a sample of homes, the nature of the 

energy efficiency improvements installed, actual usage characteristics and utility consumption of the 

home, and whether or not the owner would have undertaken the work even in the absence of the 

program to ensure that the energy savings can in fact be attributed to the program. Methods used 

vary widely based upon the need for precision in the estimates and the perspective of the program 

sponsor or regulators. In general, EM&V costs range between 1% and 8% of the overall program 

budget, and are most typically around 3-4%. 

Resources and 

Assistance  HPwES program sponsor support Web site: www.energystar.gov/hpwessponsors

– EPA’s HPwES program implementation plan outline: 

www.energystar.gov/ia/home_improvement/Program_Implementation_Plan.pdf

– Current HPwES programs: 

www.energystar.gov/index.cfm?c=home_improvement.hm_improvement_hpwes_partners

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

 Building Performance Institute: www.bpi.org

 Residential Energy Services Network: www.natresnet.org

Contact: homeperformance@energystar.gov or 

Chandler von Schrader at EPA (202-343-9096; vonschrader.chandler@epa.gov) 

Patricia Plympton at Navigant Consulting (for DOE) 

(202-481-7397; patricia.plympton@navigantconsulting.com)

70
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

Program 

Characteristics 

Summary 

HPwES is a good match for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. Given the relative fragmentation of the home contracting industry and the comparatively 

small size of each job, HPwES is a training and labor intensive program. It therefore results in a 

comparatively large number of jobs created. Per dollar spent, HPwES results in perhaps more new job 

opportunities than any other program. These are skilled jobs that include significant exposure to 

engineering and building performance science, as well as skills required by the HVAC industry and 

related trades. Qualified training staff and curricula for this program exist in many parts of the country and 

should be leveraged when possible. Further, these jobs often entail skills that prepare the employee for a 

broad range of potential future opportunities in the fields of home services and energy efficiency. In 

addition, bill savings by residences tend to re-circulate in the economy to a greater degree than do 

savings by commercial or industrial customers, and therefore have a greater multiplier effect on jobs and 

economic activity. 

2. Collaboration and Leverage of Funds. HPwES provides an excellent opportunity to collaborate with 

EPA/DOE, utility companies, state and local agencies, local trade allies and their associations, as well 

as the building science and consulting communities. EPA and DOE have completed considerable 

research and design regarding HPwES and provide a large library of implementation support and other 

materials. The program also benefits from the considerable brand recognition and value associated 

with the ENERGY STAR program. EPA and DOE support regular conferences demonstrating best 

practices and peer experience. EPA and DOE provide selective marketing funding and other support 

for qualifying programs, and utilities (both municipal and investor owned). With increasing regional 

energy efficiency goals in many portions of the country, utilities may provide an excellent opportunity 

for collaboration, funding, and/or direct implementation of HPwES programs. Finally, homeowners 

implementing projects with the help of HPwES can also leverage Federal tax credits for energy 

efficiency investments (see, www.energystar.gov/index.cfm?c=products.pr_tax_credits). 

3. Significance of Program Savings. On a “per job” basis, HPwES provides a lesser impact on 

energy and environmental emissions than many commercial or industrial programs. However, the 

potential participant base is very large, consisting of all owner-occupied dwellings older than just 

a few years, and the measures installed by the program typically have long lives and persist even 

if home ownership changes. Not only does this large base provide an opportunity for large 

impacts, it also provides an equitable and highly visible opportunity for the largest single group of 

tax-payers to participate in a program and benefit from ARRA stimulus dollars. In addition, the 

program can accommodate the needs of lower-income individuals with increased incentive levels 

and other support functions. Further, the potential impact of the program is (after the initial 

introduction) largely scalable and a function of the budget dedicated to the program. 

4. Cost of Savings. HPwES is a relatively expensive program due to its extensive requirements for 

training and verification of the work, as well as the need for public education. However, these expenses 

are also the key drivers of the program’s strong performance in job creation, quality, and accountability. 

Despite being comparatively expensive on a $/Btu saved basis, a typical program is still anticipated to 

be less expensive than the 10 Mbtu per $1,000 guidance provided in the FOA. 

71
PROGRAM R3. Home Performance with ENERGY STAR® (HPwES)

5. Sustainability and Market Transformation. Through its broad outreach and education components, 

HPwES creates a more educated and aware public on the benefits and importance of energy 

efficiency. The need to be sensitive to energy issues and the basic understanding of energy systems 

and financial payback principles will be retained by participants long after their initial contact with the 

program. This will result in spillover benefits to other energy investments or behavioral changes they 

may be considered in the future, even if they are not elements of the HPwES program. Similarly, an 

HPwES program seeds a competitive market of contractors who develop a variety of business models 

and approaches. Through competitive innovation, these contractors often integrate the HPwES 

services with other services such as HVAC service and repair, insulation, and window replacement. 

The training regarding proper analysis and installation of efficient measures, as well as customer 

education and sales techniques, remains with the contractors even in the absence of the program. 

Indeed, as the market matures and as the general public comes to understand and demand efficient 

and properly-installed products, the level of incentive offered by the program can be reduced or 

eliminated while the benefits are expected to persist. 

72
R4: Residential Efficient Heating and Cooling

73
PROGRAM R4. Residential Efficient Heating and Cooling 

Program 

Summary 

The objectives of this program are to increase sales of efficient (ENERGY STAR qualified, or better) 

heating and cooling equipment in replace-on-burnout, retrofit, and new construction opportunities, and 

to improve the operating efficiency of equipment through tune-ups of existing units and quality 

installation of new units. 

HVAC contractors are the main vehicle for deployment of this program. Contractors must complete 

trainings for AC tune-ups (refrigerant charge, coil cleaning, filter change, and a blower speed test), AC 

quality installation (proper sizing, refrigerant charge, and air flow test), furnace quality installation 

(proper sizing, air flow adjustment, furnace on-rate check), and other program requirements. 

Since the measures in this program are weather sensitive, savings vary by climate region and so do 

incentives. Contractors receive incentives for performing AC tune-ups (typically $50-75) and quality 

installations ($70-100). Homeowners receive incentives for installing efficient equipment (typically 50-

75% of incremental cost). 

The measure mix (the technologies that are cost-effective for the program to rebate) of HVAC 

programs varies largely based on weather and primary fuel (electric or gas). For example, in some 

areas of the country measures such as ground source heat pumps and hydronic heating systems are 

cost-effective and have been incorporated into residential HVAC programs. 

Target Market This program targets HVAC contractors and homeowners with central air conditioners and furnaces. 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A process for recruiting contractors 

 A process for training contractors to perform tune-ups and quality installations 

 A process for ensuring that work performed and contractor business practices meet the quality 

standards of the program (including a quality installation verification process) 

 A process for marketing the program 

 A process for providing customer support including a call center and online help 

 A process for calculating and disbursing incentives 

 A process for inspecting projects 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

74
PROGRAM R4. Residential Efficient Heating and Cooling 

Staffing 

Requirements 

& Job Creation 

Program Administration 

Depending on the size of the program, a residential HVAC initiative requires 2-4 full-time employees. At 

a minimum, the program requires one manager (a seasoned HVAC expert), and two staff engineers for 

assisting with tune-up and quality install training, quality installation verifications, project documentation 

review, and other administrative tasks. As the program grows over time the need for additional 

engineers for will increase. 

Participating Contractors 

Although many contractors may sign a participation agreement, typically about a third is very active in 

the program. By the end of the second year, you can expect to have about 15 contractors signed up 

per million in program spending (expect about five to be very active in the program). Note this is very 

sensitive to the scale of individual contracting organizations and the size of the market. 

Job Creation 

This program helps develop the market for HVAC contractors and associated trade allies. Additional 

jobs will be created in related fields as a result of program spending. In total, expect from 11 to 20 jobs 

to result per million dollars spent on this program. 

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

ENERGY STAR Heating and 

Cooling Products training 

(Link) 

Example Training Program – 

Alabama Power HVAC 

Training Center (Link) 

Air Conditioning Contractors of 

America – education and 

training (Link) 

High 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day program training; 

1 - 3 days AC Tune-up skills 

training 

AC Tune-up skills training 

should focus on use of 

commonly accepted diagnostic 

tools. 

75
PROGRAM R4. Residential Efficient Heating and Cooling 

Implementation 

Timeline 

A key challenge for this program is motivating HVAC contractors to conduct tune-ups, especially during 

the cooling season when they are usually focused on replacing equipment. For this reason, if resources 

and timing are constrained, consider starting quality install training before starting tune-up training. 

Furnaces have fewer installation issues than ACs so less training for contractors is required prior to the 

heating season than prior to the cooling season. 

This program can be ramped up quickly and scaled appropriately to available funding levels. The table 

below illustrates typical activities and associated timeframes. It does not include time that may be 

needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design and Creative

Develop consumer collateral materials

Develop program Web site

Task 2: Marketing Materials Execution and Delivery 

Print consumer collateral materials

Launch program Web site

Task 3: Participant Recruiting, Training, and Support 

Develop contractor recruitment & training materials

Hold group recruitment meetings for contractors

Contractors begin signing program agreements

Hold implementation meetings with participating contractors 

Ongoing account management meetings with participating contractors 

throughout the year

Activity logs documenting all communication and activities with contractors

Sales training courses for contractors (optional)

Task 4: Trade Ally Recruiting, Training, and Account Management 

Individual meetings with area HVAC distributors, local chapters of HVAC 

business organizations

Activity logs documenting all communication and activities with allies

Task 5: Incentive Application Validation and Processing 

All incentive applications verified for correct measures and in-territory

Task 6: Quality Assurance & Quality Control (QA/QC) 

Conduct Level I Verification on all sites; review calculations and 

commissioning report

Conduct Level 2 In-Field Verification following Phases I, 2 and 3 as 

Verification Protocols for contractors

Verify completion of ENERGY STAR Q1 program training for all contractors.

Task 7: Tracking Database Design and Set Up 

Customize Program Database 

Task 8: Program Management, Administration, and Support 

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Call Center Support 

Provide HVAC Program resources to Call Center

Task 10: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

76
PROGRAM R4. Residential Efficient Heating and Cooling 

Illustrative 

Program 

Performance 

Energy Savings 

Energy savings are very sensitive to weather, primary heating fuel type, and technology. The table 

below includes illustrative savings for the minimum level of heating and cooling upgrade typically 

required for centrally cooled/heated homes (upgrade to SEER 14 AC and/or 90 AFUE furnace) in 

“warm” and “cool” climates. Savings in hotter climates on efficient ACs can be considerably higher. In 

addition, AC Tune-Up savings typically range from 200 kWh in cooler climates, to almost 700 kWh in 

hotter regions. 

Electricity

kWh

Gas

Therms

Source

MBtu

Electricity

kWh

Gas

Therms

Source

MBtu

400 35 8                  250 200 23              

Warm Climates Cool Climates

Illustrative savings for quality installation (QI) procedures are shown below. 

QI Procedure Element Cooling Heating

Refrigerant Charge 2‐6%

Airflow 2‐5%

Sizing 3‐7% 11‐18%

Duct sealing 11‐18% 11‐18%

Energy Savings

Participation and Budget 

An aggressive program could reach about 3% of eligible homes after 3 years, though this is very 

sensitive to the climate zone and local infrastructure of HVAC contractors. An illustrative three year 

participation schedule is shown below. The sample represents a residential HVAC program run in a 

large metro area on the East Coast (with about a million residential customers). 

Illustrative program implementation costs are shown below. This is very sensitive to the degree of 

participation, the nature of the HVAC contractor network, and the measures that are cost-effective for 

the program to offer for rebates. 

77
PROGRAM R4. Residential Efficient Heating and Cooling 

1 2 3Cumula

Population of Eligible Residential Customers       1,000,000       1,000,000       1,000,000          1,000,000

Participants* 10,000                          12,000             18,000                40,000

Participation rate 1.0% 1.2% 1.8% 4.0%

Jobs Created 66                                          47                     55                      168

MBtu Saved 250,000                    300,000          450,000          1,000,000

Program Cost 3,300,000 $    $   3,360,000 $   5,040,000 $    11,700,000

Average

Average Cost per Participant** 330 $                $               280 $               280 $                  290

Jobs per $1M 20                                          14                     11                        14

Per Unit Source MBtu Saved (elec‐AC)                       5                       5                       5                          5

Per Unit Source MBtu Saved (gas‐Furnace) 20                                          20                     20                        20

Source Mbtu saved per $1,000 75.8                                  89.3                 89.3                    85.5

*Assumes 50% AC installs, 50% furnance installs

**Assumes average cost of AC upgrade ($400) and furnace upgrade ($200)

Year

tive

78
PROGRAM R4. Residential Efficient Heating and Cooling 

Resources and 

Assistance  ENERGY STAR HVAC Contractor Resources: 

www.energystar.gov/index.cfm?c=contractors.cont_prod_installcheck

 ENERGY STAR HVAC Quality Installation Program contact Ted Leopkey at EPA (202-343-9659; 

leopkey.ted@epa.gov) 

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

EM&V Support Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of 

program. 

 Unique participant ID 

 Participant contact information 

 HVAC contractor name and contact information 

 For each project: A unique project ID, measures installed, the project incentive amount, anticipated 

project savings, as well as project audit/verification status and date 

Savings 

Deemed savings estimates are typically used for this type of program, although there may be certain 

home projects that require custom (calculated) savings estimates. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of homeowners, the nature of the energy 

efficiency improvements installed usage characteristics of the home, and whether or not the 

homeowner would have undertaken the projects in the absence of the program. For this program, 

evaluators will also interview a sample of HVAC contractors to see how the program influenced their 

practices. Methods used vary widely based upon the need for precision in the estimates and the 

perspective of the program sponsor or regulators. In general, EM&V costs range between 1% and 8% 

of the overall program budget, and are most typically around 3-4%. 

79
PROGRAM R4. Residential Efficient Heating and Cooling 

Program 

Characteristics 

Summary 

HVAC is a good match for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. Given the relative fragmentation of the HVAC contracting industry and the 

comparatively small size of each job, HVAC is a training and labor intensive program (it involves 

specialized training in both HVAC tune-ups and quality installation for all participating contractors). It 

therefore results in a comparatively large number of jobs created. These jobs gain exposure to skills 

required by the HVAC industry and related trades. Qualified training staff and curricula for this 

program exist in many parts of the country and should be leveraged whenever possible. Further, 

these jobs often entail skills that prepare the employee for a broad range of potential future 

opportunities in the HVAC and energy efficiency industries. In addition, bill savings by residences 

tend to re-circulate in the economy to a greater degree than do savings by commercial or industrial 

customers, and therefore have a greater multiplier effect on jobs and economic activity. 

2. Collaboration and Leverage of Funds. HVAC provides an excellent opportunity to collaborate with 

EPA/DOE, utility companies, state and local agencies, and local HVAC trade allies and their 

associations, as well as the building science and consulting communities. The program also benefits 

from the considerable brand recognition and value associated with the ENERGY STAR program. With 

increasing regional energy efficiency goals in many portions of the country, utilities may provide an 

excellent opportunity for collaboration, funding, and/or direct implementation of HVAC programs. 

3. Significance of Program Savings. On a “per job” basis, HVAC provides a lesser impact on energy 

and environmental emissions than some programs. However, the potential participant base is very 

large, consisting of all owner-occupied dwellings with a central AC or furnace, and the measures 

installed by the program typically have long lives and persist even if home ownership changes. Not 

only does this large base provide an opportunity for large impacts, it also provides an equitable and 

highly visible opportunity for the largest single group of tax-payers to participate in a program and 

benefit from ARRA stimulus dollars. Although it is not a focus here, this program can have a 

considerable impact on peak demand – ENERGY STAR Central ACs save around 0.3-1.0 kW, 

depending on the efficiency of the unit. 

4. Cost of Savings. HVAC requires a significant investment due to its extensive requirements for training 

and verification of the work, as well as the need for public education. However, these expenses are 

also the key drivers of the program’s strong performance relative to job creation, quality, and 

accountability. Despite being comparatively expensive on a $/Btu saved basis, a typical program is still 

anticipated to be less expensive that the 10 Mbtu per $1,000 guidance provided in the FOA. 

5. Sustainability and Market Transformation. Through its outreach and training components, this 

program helps transform the HVAC contractor market. Most HVAC contractors are focused on 

replacing burned-out equipment during the heating and cooling seasons, and research shows that 

more often than not, these units are both oversized and improperly installed. This program changes 

contractor behavior by teaching HVAC personnel to properly size units and to perform quality 

installations. The program also helps build demand for these contractors by teaching them how to 

properly tune-up functioning equipment, and by marketing tune-ups to homeowners. As the market 

matures and homeowners come to understand and demand efficient and properly installed HVAC 

equipment, the level of incentive offered by the program can be reduced or eliminated while the 

benefits are expected to persist. 

80
81

4-B: Marketing Strategies & Tactics for Residential Programs 

In addition to a strong online presence, residential program marketing generally benefits 

from a heavier emphasis on mass media (i.e., radio or television ads or public service 

announcements) and traditional collateral (i.e., point-of-purchase displays) than does nonresidential program marketing. This is especially the case with ENERGY STAR Products 

initiatives because customers often learn about efficient products through traditional 

media channels, and then make final decisions on lighting and appliance purchases while 

shopping retail locations. 

Marketing Plan Templates 

These marketing plan templates provide examples of how to effectively promote different 

types of residential RDEE Programs. Included below are templates for: 

 Home Performance with ENERGY STAR® (HPwES) 

 Residential Efficient Heating and Cooling 

Many of the strategies and tactics included in these templates apply across program types. 

Program managers can work from these templates as a framework for developing their own 

marketing plans, or, if the program administrator is in the process of selecting an 

implementation contractor through an RFP process, for helping screen the quality of the 

prospective contractors’ own marketing plans. 
4-B-1: Marketing Plan Template: Home Performance with ENERGY STAR®

Preliminary Considerations 

To develop an effective marketing plan for Home Performance with ENERGY STAR®

(HPwES), program sponsors should first consider the following questions: 

 Who is the target audience for the marketing effort? 

 What are the key motivators for the target audience? 

 What message(s) will the marketing effort deliver to the target audience? 

 What marketing tactics will be most-effective in reaching the target audience with the defined 

message? 

 How will the results of the marketing effort be measured? 

Defining the Target Audience 

Homeowners likely to be most receptive to HPwES include those who: 

 Live in communities with high utility rates or areas that recently experienced rate increases; 

 Own homes built before energy codes became widely adopted (pre-1980) or have comfort 

problems such as drafts, cold floors, poor air flow, high indoor humidity; 

 May consider single-measure energy efficiency projects (adding insulation, replacing 

windows, replacing inefficient heating and cooling equipment); 

 Are considering other large-scale home improvements (such as replacement of 

malfunctioning equipment, kitchen or bath upgrades, basement finishing, and major additions) 

and therefore have the budget set aside; 

 Earn a high enough income to be able to afford a whole-house retrofit project (or low enough 

to qualify for special financing programs); 

 Are interested in energy efficiency and want to live a “greener” lifestyle; 

 Have family members with allergies, asthma, or other health issues that may be related to 

indoor air quality. 

Defining the Key Motivations and Messages 

Knowing that the target audience may be experiencing issues such as high utility bills, comfort 

problems, health problems, malfunctioning equipment, desire to improve amount of space or 

home aesthetics, or a desire to live greener, HPwES marketing messages should address these 

issues and identify HPwES as the “best” solution to these problems. Key HPwES messages for 

homeowners include: 

 Utility bill savings of 20% or more; 

 Improved comfort (fewer drafts, more comfortable rooms, better humidity control, and 

improved indoor air quality); 

 Work performed by specially-trained contractors, with third-party quality assurance to make 

sure work gets done right; and 
 Reduced greenhouse gas emissions to protect the environment. 

Selecting Marketing Tactics 

A variety of marketing tactics can be used to reach HPwES target audiences. Marketing plans should 

include a combination of several of these to create a comprehensive multi-media strategy: 

 On-line (comprehensive program Web site, Search Engine Optimization (SEO), paid search 

campaigns, Web banners and buttons); 

 Print (newspaper, national, local and special interest magazines, yellow pages, direct mail); 

 Radio (NPR sponsorships, talk and music stations, Sunday morning special interest shows); 

 TV (commercial spots, news or weather sponsorships); 

 Home shows and other community events; 

 Public relations and other “earned media.” 

Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Demonstrated increase in consumer awareness of HPwES; 

 Increase in traffic on program Web site and at program events; 

 Increase in HPwES job leads for participating contractors and completed HPwES jobs reported. 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate homeowners about 

HPwES. These materials are available at: www.energystar.gov/hpwessponsors. 

 Home Performance with ENERGY STAR® Marketing Graphic 

 Sample Program Web Site 

 Marketing Toolkit 

 Promotional Video 

 Home Performance House Graphics 

 Promotional Banners 

 Consumer Brochure 

 Home Energy Yardstick 

83
4-B-2: Marketing Plan Template: Residential Efficient Heating and Cooling 

Preliminary Considerations 

To develop an effective marketing plan for Residential Efficient Heating and Cooling, program 

sponsors should first consider the following questions: 

 Who is the target audience for the marketing effort? 

 What are the key motivators for the target audience? 

 What message(s) will the marketing effort deliver to the target audience? 

 What marketing tactics will be most effective in reaching the target audience with the defined 

messages? 

 How will the results of the marketing effort be measured? 

Defining the Target Audience 

Experience has proven that successful programs must reach and engage both sides of the market, 

supply and demand contractors as well as homeowners directly, to ensure consistent messaging 

across the program, and provide a full comprehensive campaign. By reaching out to both sectors 

in tandem, the marketing program will create a push-pull effect with an overlapping effect of 

filling in all relevant information from both the supply and demand sides of the industry.

Contractors likely to be most receptive to selling and providing Efficient Heating and Cooling 

products include those who are: 

 Interested in growing their business and recruiting high quality staff; 

 Willing to sell or deliver more time-intensive services, such as verified quality installations or 

duct sealing and repair; 

 Unaware of their options or of the features and benefits of higher efficiency equipment; 

 Providing services in areas with higher than average energy consumption or stricter than 

average energy efficiency requirements. 

Homeowners likely to be most receptive to Efficient Heating and Cooling products include those who: 

 Are purchasing new HVAC equipment as part of replacing existing equipment or improving their 

current home or consumers who would benefit from a tune-up on their current system; 

 Consume more than average amounts of energy; 

 Are required to use products that meet minimum efficiency requirements; 

 Live in communities with high utility rates or areas that recently experienced rate increases; 

 Are considering home improvement (aesthetic and structural) and/or energy efficiency 

projects (adding insulation, replacing windows, replacing inefficient heating and cooling 

equipment); 

 Interested in energy efficiency and want to live a “greener” lifestyle. 

84
Defining the Key Motivations and Message 

Contractors and consumers have unique vested interests, and there are specific and common 

barriers associated with each group. These should be considered and addressed when crafting 

key messages. 

The greatest challenge for most HVAC contractors is finding, retaining, and motivating high 

quality technical staff. The lack of adequate staff often impedes contractors’ ability and 

willingness to sell or deliver more time-intensive services. Given their sensitivity to the time 

requirements of these services, many contractors believe that they can best maximize profit by 

selling and delivering a higher volume of work rather than by performing the highest quality 

work or by exceeding minimum code requirements. Even contractors who genuinely want to 

focus on quality may operate from the fundamental belief that the majority of consumers are 

primarily interested in low or competitive first cost, leading them to simply conclude that “going 

the extra mile” provides them with no tangible competitive benefit. 

Keeping these issues in mind, key messages for contractors include: 

 Training and program resources will help grow the business and reputation for delivering 

quality work in the service area. 

 Homeowners are increasingly concerned about reducing their energy costs and negative 

impact on the environment. 

 Incentives and rebates will make the services more affordable to the clients. 

Homeowners’ desire for energy-efficiency equipment will create the market pull that demonstrates 

to the HVAC industry that selling efficiency makes business sense. Many consumers lack 

information about HVAC in general, leading them to view HVAC products and services as a 

“commodity” that can be provided by any licensed HVAC contractor. They assume that equipment 

is installed and serviced according to best practices, and therefore tend to shop for the lowest initial 

price rather than consider the long-term total cost of ownership and operation. This misperception 

can be reinforced in the marketplace by less skilled, less astute contractors who sell on the basis of 

lowest price and fast service rather than high quality. The result is that many consumers do not 

demand energy-efficient HVAC equipment, quality installations, or properly performed system 

tune-ups. 

Keeping these issues in mind, key messages for homeowners include: 

 In any season, high efficiency heating and cooling equipment can help lower usage and 

manage utility costs. 

 Heating and cooling costs make up nearly half the home's total energy bill. If the central air 

conditioning unit is more than 12 years old, replacing it with a qualified, high-efficiency 

model could cut cooling costs by 30 percent. 

 ENERGY STAR® qualified central air conditioners have a higher seasonal energy efficiency 

ratio (SEER) than standard models - which makes them about 14% more efficient than 

standard models. The higher the SEER, the greater the efficiency. 

 When buying new equipment, make sure to get a quality installation. Make sure to get a 

contractor who can do the right job. 

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 Proper maintenance can go a long way in preventing future heating and cooling system 

problems. 

 Rebates are available to offset upfront costs and customers will save energy each month with 

more efficient products. 

Selecting Marketing Tactics 

A variety of marketing tactics can be used to reach residential Efficient Heating and Cooling target 

audiences. Marketing plans should include a combination of several of these to create a 

comprehensive multi-media strategy to engage both contractors and homeowners. 

The following tactics have the objective of recruiting contractors: 

 Contractor Recruitment Packet (guidance and support documents and materials); 

 Program Resource Kit (guides, reporting forms, training materials, marketing support 

materials, messaging, technical specifications, etc); 

 Marketing Tools (door hangers, rebate forms, van magnets, email template, newsletter 

articles, online banner ad); 

 Program Web Site; 

 Local Contractor Trainings and Information Sessions; 

 Direct (targeted mail; print, online or radio advertising). 

The following tactics have the objective of increasing consumer demand for energy-efficient 

residential heating and cooling products and services: 

 Direct Marketing (inserts in community newspapers, co-op inserts); 

 Door Hangers (direct hangs targeted by demographics or zip codes); 

 Web Site and Online Advertising (Search Engine Optimization, Google Key Words, banner 

ads on relevant Web sites); 

 E-Marketing (program email updates, newsletter and special offers); 

 Retail Promotion or Point of Purchase (signage at retail); 

 Print (newspaper, national, local and special interest magazines, yellow pages, direct mail); 

 Radio (NPR sponsorships, talk and music stations, Sunday morning special interest shows, 

home improvement programs); 

 TV (commercial spots, news or weather sponsorships); 

 Home shows and other community events; 

 Public relations and other “earned media.” 

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Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Increased sales of new efficient heating and cooling products and associated savings; 

 Increased servicing of existing heating and cooling products and associated savings; 

 Number of contractors engaged in the program and the number of their customers they serve; 

 Demonstrated increase in consumer awareness of the ENERGY STAR brand; 

 Traffic to program Web site; 

 Contractor and customer satisfaction (e.g. tracked via surveys, comment cards). 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate homeowners 

about commercial energy users. These materials are available at: 

http://www.energystar.gov/index.cfm?c=partners.pt_index. 

 ENERGY STAR Logos – can be used in a variety of promotional materials for distribution, and 

also provides brand recognition to the program 

 Publications – a library of all ENERGY STAR published materials with information about 

products, safety and saving tips, and other ways to improve efficiency 

 Training Center – serves as a resource for partners looking to improve their sales 

effectiveness. Find tools and information to help convey to staff, customers, or business 

partners how ENERGY STAR can help them protect the environment while saving energy 

and money. 

 National Awareness and Marketing Campaigns – provides background on other initiatives 

and branding taking place with ENERGY STAR 

 Heating and Cooling fact sheets, forms and specification sheets 

 Guide to Energy Efficient Heating & Cooling 

 Seal and Insulate with ENERGY STAR Brochure 

 Do-It-Yourself Guide to Sealing and Insulating with ENERGY STAR 

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4-C: Illustrative Request for Proposal 

4-C-1: Home Performance with ENERGY STAR®

Note: The final RFP should be reviewed by the organization/s contracts official or attorney. 

Purpose of RFP 

The purpose of this RFP is to select a third-party vendor that will offer the program administrator a range of 

high quality and effective services relating specifically to the development and implementation of a Home 

Performance with ENERGY STAR (HPwES) program funded by the American Recovery and Reinvestment 

Act of 2009. Desired services include the following: 

 Baseline Market Characterization and Performance Indicators; 

 Development of the HPwES program plan, policies and procedures; 

 Participant recruitment and training; 

 Contractor technical support and mentoring; and 

 Quality Assurance 

The initial contract for the selected Bidder will extend for a term of [two] years. After the initial [two-year] term, 

the contract may be renewed annually, at [Program Administrator’s] option, through [date]. 

About the Program Administrator 

[Organization description and Web site] 

Contact Information 

The following individual will represent the Program Administrator as the primary contact for matters relating to the 

non-technical aspects of this RFP and during the contract negotiation/award process and subsequent invoicing. 

[Name] 

[Contact Info] 

The following individual will represent the Program Administrator as the primary contact for matters relating to 

technical aspects of the RFP and throughout the performance of the work upon the awarding of the contract. 

[Name] 

[Contact Info]

Scope of Work 

Task [1]: Baseline Market Characterization and Performance Indicators 

The contractor will prepare a baseline market characterization and list of key performance indictors that 

should be tracked by the program administrator. The primary goal is to provide data and intelligence to 

inform program-related decision-making and future program evaluation. 

 Baseline Market and Energy Use Characterization analysis will provide population and housing stock 

demographics including: predominant age and style of homes, energy usage, homeowner income and 

buying habits, and projected cost-effective energy improvements, existing local contractor environment, 

number of contractors skilled in residential energy assessment, local licensing requirements, and contractor 

training opportunities. This information will be relevant to launching an HPwES program in [region]. 

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 Performance Indicators consist of a set of metrics for tracking market changes (supply and demand) in 

[service territory] that can be attributed to program actions. These metrics may include: number of customer 

inquiries (demand), number of participating contractors (supply), number of participating customers by 

contractor (demand), number of verification inspections by contractor, average energy saved per home, 

measures installed, and gross energy saved. The program administrator will monitor these metrics quarterly 

and make appropriate adjustments in program delivery to balance consumer demand and the supply of 

participating contractors with the purpose of achieving the programs energy savings goals. 

Task [2]: Develop Program Plan, Policies and Procedures 

The contractor will develop a program implementation plan that documents policies and procedures that 

govern the administration of the HPwES program. This plan should include both programmatic (internal) and 

participant policies and procedures. 

The HPwES program will enlist residential trade contractors to conduct whole-house energy assessments 

and install measures which reduce energy use and improve home performance. Trade contractors will need 

training to learn how to conduct a whole-house energy assessment and participate in the program. 

Example of policies and procedures that should be established (or adopted): 

 A contractor participation agreement that describes the requirements of participation including 

qualifications, incentives, and expected levels of performance. 

 Protocols for how participating contractors will conduct a Home Performance Assessment, estimate energy 

savings, summarize findings and recommendations for the customer; install measures to best practice 

standards, conduct a test-out inspection, and report information to the program. 

 Instructions on how customer inquiries (or leads) will be managed tracked and directed to participating contractors. 

 What incentives, financing or other benefits are available to customers and participating contractors, how 

to qualify for them and how they will be processed. 

 How a quality assurance program will monitor the work performed under the program. 

The home performance assessment should include a complete visual and diagnostic inspection of all the 

home’s thermal and mechanical systems for efficiency including attics, exterior walls, windows, basement, 

heating and hot water systems. The evaluation may also include a utility bill analysis of the homes’ heating, 

cooling, and other loads. 

The National HPwES Program provides guidance (www.energystar.gov/hpwessponsors) for preparing this plan 

Task [3]: Participant Recruitment and Training 

The contractor will develop a strategy for recruiting, training, and mentoring contractors to participate in the 

HPwES program. 

The contractor will coordinate with trade allies to promote the program to prospective participants. 

The contractor will provide technical training to participating contractors in the fundamentals of building 

science, diagnostic testing , conducting a Home Performance Assessment, estimating energy savings, 

summarizing findings and recommendations for customers, installing measures to best practice standards, 

conducting a test-out inspection, reporting information and other requirements of participating in the 

program. Participating contractors will pay a fee for the training and a portion of the fee may be refunded 

when they meet the qualifications for participation and successfully complete improvements, that meet 

program criteria, for [5] customers. 

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Task [4]: Technical Support and Mentoring 

The contractor will work closely with participating contractors to provide technical assistance and mentoring on 

their first [5] jobs. This task will include accompanying participating contractors to customer’s homes to conduct 

a Home Performance Assessment, summarize findings and recommendations, estimate energy savings, 

installing recommended measures and conducting a test-out inspection. Individuals performing work under this 

task should be experienced and qualified to do this work and have appropriate liability insurance. 

The contractor will be available [2] hours, [5] days a week to answer technical building science related 

questions raised by participating contractors and assisting them in identifying the appropriate diagnostic 

testing equipment necessary to fulfill program testing requirements. 

Task [5]: Marketing 

The contractor will develop and manage a web site that explains the program to customers and contractors. 

The contractor will also establish a hotline for customers to call with questions about the program. The 

hotline will be staffed [5] days a week during normal business hours. Customers can visit the web site or 

leave a message during non-business hours. Email inquiries generated from the web site will be managed 

by hotline staff. 

The contractor will conduct public relations and marketing campaigns that encourage customers, in the 

[service territory], to participate in the program. Customers will be directed to visit the web site or call the 

hotline for more information and to request an appointment with a participating contractor. 

Customers that request an appointment with a contractor will be directed to a participating contractor that 

agrees to follow-up with the customer and schedule an appointment by the close of the next business day. 

Lead tracking will need to be coordinated with quality assurance activities handled by [a separate contactor.] 

An online marketing toolkit, that includes marketing templates, is available to HPwES Partners from the 

National HPwES program. A web site template is also available. 

Task [6]: Quality Assurance 

The value of Home Performance with ENERGY STAR is maintained when participating contractors 

consistently deliver services that meet or exceed program standards. 

Develop and implement a quality assurance program that provides direct feedback to participating 

contractors on their compliance with program policies and procedures. Activities are likely to include: 

 Collecting specific information from participating contractors on all Home Performance Assessments and 

work they have completed for customers. 

 Reviewing information from every completed project to determine if fundamental program requirements are 

being met. 

 Conducting inspections of at least 5% of the work completed by each participating contractor to determine 

if program requirements are being met. 

 Obtaining and reviewing feedback from customers. 

 Communicating with participating contractors on their performance. 

The contractor will be responsible for tracking the activities of all participating contractors, reviewing 

contractor reporting, scheduling on-site inspections, conducting inspections, documenting findings of the 

inspection, and providing prompt feedback to the participating contractor on any measures that need to be 

brought into compliance. The contractor will also be responsible for removing contractors from the program 

that fail to meet program requirements. 

The contractor will provide summary information in a monthly and annual report to [Organization Name] on 

quality assurance activities including the following metrics: incentives, number participating contractors, 

number homes assessed, number participating customers (measures installed), estimated energy savings, 

number of homes inspected. The contractor will work cooperatively with the Process and Impact Evaluation 

contractor selected by [Organization Name] to provide requested metrics and information collected in the 

90
quality assurance process. 

The National HPwES Program offers guidance (www.energystar.gov/hpwessponsors) for developing a 

quality assurance program.

Information to Be Provided with Proposal 

Section 1: Introduction and General Information – The proposal should briefly identify key information 

about the organization. The proposal must include the following information: 

 The organization name, address, telephone number, fax number, and email address for each contact person. 

 Year the organization was established 

 Name and address of parent company (if applicable) 

The proposal should describe why the organization is uniquely qualified to perform and complete the 

services requested by this RFP. This section should be limited to no more than one (1) page and provide a 

brief introduction of the organization and the team (if applicable). 

91
Section 2: Executive Summary – Summary of the proposed program (not to exceed 1 page) 

Section 3: Technical Approach –The Technical Approach details how the organization will fulfill each of 

the tasks outlined in the SOW. Do not simply reiterate or rephrase the SOW tasks. The technical approach 

must express how the organization proposes to comply with the work scope and provide a full explanation of 

the techniques and procedures the organization proposes to follow. The organizations technical approach 

for completing the SOW must be prepared as an ordered set of tasks, including subtask as necessary. The 

SOW will describe the approach/methodology and its rationale. Each action needed to complete each task 

will be identified along with who will perform it, how it will be performed, when it will be performed, and the 

anticipated deliverables. Additional tasks, not included in the RFP, maybe proposed if they are consistent 

with the primary objectives. Use the table format provided below to provide all information on the proposed 

approach to the SOW. 

Approach to SOW Task # (title) 

Approach to Sub Task 1 (title): 

Approach to Sub Task 2 (title): 

Etc. 

Section 4: Management Structure – The proposal will identify all project participants, including the 

program director, who will be responsible for ensuring that the tasks within the SOW are carried out properly 

and in a timely manner. The proposal will provide a clear description of the roles and responsibilities of each 

key person in completing the work. An organization chart will be included in the proposal. The proposal will 

describe how coordination with building trade allies and other contractors helping to implement parts of the 

program will be accomplished. 

Section 5: Qualifications – The proposal will demonstrate the qualifications and past experience of the 

organization and all personnel who will carry out each task in the SOW. 

Section 6: Schedule and Staff Plan – The proposal will include a time line for completing each task and 

major subtask included in the SOW. This time line should be in bar chart form showing anticipated starting 

and completion times for each task, in terms of weeks or months after execution of the contract. 

The proposal will include a staffing plan that identifies the key personnel, including any subcontractors or 

other resources, responsible for completing each task and major subtask. Provide a table showing the 

number of hours each key person or subcontractor will spend on each task and the total hours per task. 

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93

Section 7: Budget – The proposal will include a proposed budget to complete the SOW. The budget will 

include the following cost elements and a total cost. 

 Direct Labor 

 Labor Overhead 

 Direct Materials 

 Materials Overhead 

 Equipment 

 Travel 

 Other Direct Costs 

 Subcontractors/Consultants 

Evaluation Criteria 

 The Bidder’s experience with providing the proposed program portfolio at the scale and on the timeframe 

requested in other engagements. 

 The capacity of the Bidder, as judged by program administrator, to successfully devise and deliver the 

proposed programs on the aggressive scheduled required. The judgment will be based on such factors as 

the Bidder’s commitment, experience of personnel to be assigned to the project, facilities, and evidence of 

past experience in implementing such programs. 

 The Bidder’s ability to modify and/or expand the program when required, and to provide a continuing high 

level of performance for the duration of the contract. 

 The Bidder’s ability to provide independent, third party verification of program results, as well as tracking 

and reporting with transparency as required by ARRA funding guidance. 

 The Bidder’s ability to demonstrate to the program administrator that the requirements and implications of 

the proposed work effort are clearly defined and understood. 

 The Bidder’s commitment to and evidence of a diversified work force at all levels of the organization, and a 

diversified supplier strategy. 

 Quality and cost of Bidder’s proposed Project Evaluation plan. 

 Project Cost. 

Selection and Award Process 

Distribution of RFP: [date] 

Proposals due to Program Administrator: [date/time] 

Decision on Program Vendor [date] 

Negotiate and Execute Contract [date] 

Launch programs [date] 

**Please submit [six (6)] copies of the proposal. Proposals must be clearly labeled and submitted to: 

[Program Administrator Contact Name and Address]** 

Bidders whose proposals have not been selected will be notified via telephone, email and/or written letter at 

the number or address provided in their proposal. An official statement to the same effect will be sent 

through the U.S. Postal Service following the award of the contract to the successful Vendor, if any. 

Appendices 

 STANDARD TERMS AND CONDITIONS 

 SIGNATURE PAGE 

 BIDDER ACKNOWLEDGEMENT (of receipt of the RFP) 

 BIDDER CONDUCT (expectations regarding bidder’s professional conduct ] 
5: Non-Residential RDEE Program Snapshots and Templates 

94
5-A: Non-residential RDEE Programs 

This section contains program-specific planning and implementation ramp-up materials for 

non-residential RDEE programs, including: 

A. Snapshots for the following RDEE programs36: 

NR1. Prescriptive 

NR2. Retrocommissioning 

NR3. Commercial Food Service 

NR4. C&I Custom 

NR5. Benchmarking and Performance 

NR6. On-Site Energy Manager 

B. Marketing Strategies and Tactics for Non-Residential Programs, including marketing plan 

templates for the Prescriptive, Retrocommissioning, Commercial Food Service, and 

Benchmarking and Performance programs. Program administrators and managers can use 

the templates in development of marketing plans for any non-residential efficiency program. 

C. An illustrative Request for Proposal (RFP) for third party implementation of a non-residential 

program (Prescriptive). This may be used by state energy offices or other program 

administrators to help develop their own RFPs for soliciting proposals for implementation of 

a Prescriptive program or other energy efficiency programs. 

 

36 The snapshots have been updated and expanded since they were originally released in May 2009 as part of the 

first version of the Planning Guide. 

95
NR1: Non-Residential Prescriptive Program 

96
PROGRAM NR1. Non-Residential Prescriptive Program 

Program 

Summary 

Prescriptive programs encourage non-residential customers to upgrade or retrofit working equipment 

with new, energy-efficient equipment. This program has been run cost-effectively in nearly every 

region of the country, and provides an opportunity to deploy energy-efficient technologies quickly into 

a state’s businesses, industries, and schools. 

Focusing on easy opportunities to produce verifiable energy savings, such as lighting upgrades from 

T12 to T8 linear fluorescent lamps, efficient HVAC equipment, and products like motors and 

refrigerators, this program will provide a simple, expedited solution for non-residential customers to 

save energy. The majority of incentives are geared towards customers who are in the market for 

new equipment when their old equipment burns out. In some instances, such as for T12 lighting, the 

program should also encourage the replacement of working but inefficient technologies with newer 

and more energy-efficient technologies (retrofit opportunities) due to significant savings opportunities. 

Target Market The program is targeted at commercial, institutional, and industrial customers. Program sponsors 

may elect to target participants with certain demographic characteristics, or whose energy 

consumption exceeds established metrics. 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 Processes for trade ally recruiting, training, and account management 

 Processes for participant marketing, recruiting, training, and account management 

 A process for calculating and disbursing incentives 

 A process for inspecting projects 

 A process for ensuring that work performed and contractor business practices meet the quality 

standards of the program 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 Customer support including a call center and online help 

Staffing 

Requirements 

& Job Creation 

Program Administration 

Depending on the size of the program, a prescriptive initiative requires 3-5 full-time employees. At a 

minimum, the program requires one manager, and two staff engineers for reviewing project 

documentation and inspecting projects. As the program grows over time, the need for additional staff 

will increase. 

Participating Contractors 

Participating contractors are typically required to sign a participation agreement with the program. 

Although many contractors may sign a participation agreement, generally only about a third is very 

active in the program. By the end of the second year, you can expect to have about 150 contractors 

signed up per million in program spending, although this is very sensitive to the scale of individual 

contracting organizations and the size of the market. 

Job Creation 

This program helps develop the market for installation contractors and associated trade allies. 

Additional jobs will be created in related fields as a result of program spending. In total, expect from 8 

to 11 jobs to result per million dollars spent on this program. 

97
PROGRAM NR1. Non-Residential Prescriptive Program 

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical 

training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

Example Training – Pacific 

Gas & Electric “Commercial 

Lighting Fundamentals” (Link) 

On-the-job Training 

N/A Medium 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day 

Some states may already or may 

want to consider making contractor's 

license a requirement.

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PROGRAM NR1. Non-Residential Prescriptive Program 

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The 

table below illustrates typical activities and associated timeframes. It does not include time that may 

be needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Design Marketing Materials

Identify commercial sectors to target

Develop collateral materials for business owners and managers

Develop program Web site

Task 2: Marketing Materials Execution and Delivery 

Print collateral material

Outreach to business owners and managers

Conduct PR / Media Effort

Task 3: Participant Recruiting, Training, and Support 

Recruit distributors, contractors, and designers

Train distributors, contractors, and designers

Task 4: Incentive Application Validation and Processing 

All incentive applications verified for correct measures and interritory (it will make a difference whether the process is electronic 

or not)

Task 5: Program Hotline Support

Provide C&I Program resources to Hotline

Develop complaint resolution process/plan

Provide call service for customer questions and scheduling 

appointments

Task 6: Tracking Database Design and Set Up 

Determine what database needs are

Customize program database

Report to Program Sponsor (as requested)

Task 7: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Task 8: Program Management, Administration, and Support 

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

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PROGRAM NR1. Non-Residential Prescriptive Program 

Illustrative 

Program 

Performance 

Energy Savings 

Energy savings will vary considerably by state/industry. One Prescriptive program in the Midwest 

(see table below) verified energy savings of about 400 MBtu per participant. A similar program, also 

in the Midwest, verified 600 MBtu per participant. In general, a large percentage of program savings 

comes from lighting retrofit projects. 

Participation and Budget 

An illustrative three year participation schedule for a Prescriptive program run in a large metropolitan 

area in the Midwest with a million electric customers is shown below. Note that in the first program 

year, participation is relatively low – this is because the program started later in the year than expected. 

Reported costs vary depending upon the implementation approach taken and degree of participation. 

Illustrative program implementation costs are shown below. 

1 2 3Cumula

Population of Eligible C&I Customers 100,000                              100,000               100,000               100,000

Participants                        110                        880                        830                    1,820

Participation rate 0.1% 0.9% 0.8% 1.8%

Jobs Created                            3                          34                          20                          57

MBtu Saved 39,000                                 352,000               335,000               726,000

Program Cost 297,000 $             $        3,784,000 $        2,490,000 $        6,571,000

Average

Average Cost per Participant $2,700 $4,300 $3,000 3,610                    

Jobs per $1M                          11                            9                            8                            9

Per Unit Source MBtu Saved (elec)                        350                        400                        400                        400

Per Unit Source MBtu Saved (gas)                         0.3                         0.3                         3.4                         3.4

Source Mbtu saved per $1,000 131.3                                          93.0                    134.5                    110.5

Year

tive

Incentive Levels 

Illustrative incentive levels for some C&I prescriptive measures are listed below. 

100
PROGRAM NR1. Non-Residential Prescriptive Program 

EM&V Support Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of 

program. 

 Unique participant ID 

 Participant business NAICS code 

 Participant contact information 

 Contractor name and contact information 

 For each project: A unique project ID, measures installed, the project incentive amount, anticipated 

project savings, as well as project audit/verification status and date 

Savings 

As the performance of the measures in this type of program are typically well-understood, the use of 

deemed savings estimates is generally appropriate. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of facilities, the nature of the energy 

efficiency improvements installed, usage characteristics of the facility, and whether or not the 

business owner would have undertaken the projects. Due to the well-researched assumptions 

surrounding the products in this program, deemed savings values will be used for most measures. 

Methods used vary widely based upon the need for precision in the estimates and the perspective of 

the program sponsor or regulators. In general, EM&V costs range between 1% and 8% of the overall 

program budget, and are most typically around 3-4%. 

Resources & 

Assistance  EPA’s ENERGY STAR Products page: www.energystar.gov/products

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

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PROGRAM NR1. Non-Residential Prescriptive Program 

Program 

Characteristics 

Summary 

A prescriptive program is a good use for stimulus funding. Its characteristics relative to the key 

criteria identified previously include: 

1. Impact on Jobs. The main employment benefit of the prescriptive program is stimulating the market 

for installation contractors. Unlike some programs, a prescriptive program does not involve skilled 

training, or direct employment with the program. However, prescriptive programs are contractor-driven 

initiatives, and experience shows that contractors active in similar programs see significant increases in 

business. 

2. Collaboration and Leverage of Funds. A prescriptive program provides an excellent opportunity to 

leverage EPA/DOE resources for ENERGY STAR qualified products rebated through the program, and 

to collaborate with utility companies, state and local agencies, and local trade allies and their associations. 

3. Significance of Program Savings. A prescriptive program should be one of the first programs 

off the block, and will also yield significant savings over a relatively short timeframe. The best-run 

prescriptive programs do this by keeping participation simple and picking low-hanging fruit, such 

as T-12 to T-8 retrofits. 

4. Cost of Savings. This program tends to be very cost effective because it requires low overhead 

while paying incentives for a large volume of projects. Prescriptive incentives are attractive to a 

wider range of commercial customers than other C&I programs because participation is relatively 

simple, and does not require a significant upfront investment on the part of business owners. 

5. Sustainability and Market Transformation. In terms of market penetration, a prescriptive 

program will reach more non-residential customers across more customer segments than any 

other C&I program. Research shows that C&I customers who experience the benefits of energy 

efficiency through a relatively simple program, such as prescriptive incentives, are more likely to 

participate in other programs that require more significant investments.

102
NR2: Non-Residential Retrocommissioning (RCx) 

103
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Program 

Summary 

Retrocommissioning (RCx) offers building owners a systematic process for evaluating a structure's 

major energy-consuming systems and identifying opportunities to optimize equipment operation. 

RCx tunes up existing buildings, improving their energy efficiency and operational procedures. RCx 

is typically carried out through local networks of commissioning providers. Each customer goes 

through a five-phase process: 

1. Application: Building owners or managers apply for RCx program assistance. 

2. Planning: An analysis of the entire building, including a study of past utility bills and interviews 

with facility personnel. 

3. Investigation: Use of benchmarking tools, such as ENERGY STAR Portfolio Manager (can be used to 

develop the baseline Building Energy Performance rating) to assess overall performance against peer 

buildings and identify under-performing buildings to target. 

4. Implementation: Diagnostic monitoring and functional tests of building systems are then 

conducted, leading to system adjustments and maintenance actions. 

5. Verification: Building systems are then retested and re-monitored to fine-tune improvements. 

ENERGY STAR Portfolio Manager can be used to provide a level of transparency and 

accountability to help demonstrate strategic use of ARRA 2009 funding by generating a Statement 

of Energy Performance (SEP) for each building, and summarizing important performance indicators, 

including energy use intensity and greenhouse gas emissions associated with building energy use. 

A final report, retrocommissioning plan, and operations and maintenance schedule are given to the 

building owners and operators. Each commissioning provider should develop a pre-and postcommissioning Energy Performance Rating using ENERGY STAR Portfolio Manger and submit the 

results in its final report for each building. 

In many cases, building operators receive additional training in keeping systems operating at 

optimum levels, and monitoring methods are established to track performance on an ongoing basis. 

Incentives typically include cost sharing for planning and investigation up to a per-project cap of 

$10,000-15,000. Implementation incentives are offered on a dollar per kWh basis covering some of 

the incremental cost of implementing recommended energy efficiency measures. 

Target Market RCx is typically performed only on large commercial and industrial facilities. Facility qualification 

criteria may include: 

 A size minimum (though priority may be granted to facilities with high energy use intensities). 

 A funding commitment (i.e., $15,000) from the building owner for completing the project plan and 

implementing measures. The facility must have an existing building or system energy 

management system (EMS) with direct digital control (DDC). 

 The facility must be free of major problems requiring costly repairs or replacements and have no 

major system renovations or retrofits planned. 

 The facility must have accessible and up-to-date building documentation and records. 

 The facility owner and O&M staff must express a commitment to be actively involved in the RCx 

process with a commitment of at least 40 hours by the O&M staff. 

 The facility owner and O&M staff must deliver a persistence plan prior to project completion 

demonstrating strategies for maintaining energy savings identified as part of the RCx process.

104
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A standardized process for screening applications 

 A process for recruiting and training commissioning providers 

 Processes for conducting the planning, investigation, implementation and verification stages of RCx 

 A process for marketing the program to business owners and building managers 

 A process for calculating and disbursing incentives 

 A process for ensuring that work performed and commissioning provider business practices meet 

the quality standards of the program 

 A system for tracking and accounting for the program, and for reporting to program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 Customer support, including a call center and on the program Web site 

Staffing 

Requirements 

& Job Creation 

Program Administration 

Depending on the size of the program, RCx requires 3-5 full-time employees. At a minimum, the 

program requires one manager (an individual with significant commissioning experience), and two 

staff engineers with commissioning experience who can handle both supervising and conducting the 

planning, investigation, implementation, verification stages of RCx, program trainings with 

commissioning providers, as well as additional education of building owners and operators. As the 

program grows over time, the need for additional engineers for will increase. 

Participating Contractors 

During the first 6 months as RCx rolls out, you will need to recruit 3-5 commissioning providers per 

million program dollars spent. As the program grows over time, the need for additional providers will 

increase, although this is very sensitive to the scale of individual contracting organizations and the 

size of the market. 

Job Creation 

This program helps develop the market for commissioning providers and associated trade allies. 

Additional jobs will be created in related fields as a result of program spending. In total, expect from 5 

to 15 jobs to result per million dollars spent on this program. 

105
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical 

training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

Portland Energy Conservation, 

Inc. 

Nationally Recognized 

Commissioning Experts (Link) 

Building Commissioning 

Association sponsors 

webinars and certifications 

(Link) 

High 

Program-Specific Training Resources 

How long will training take? Notes 

1-3 days 

Some states may already or may 

want to consider making 

contractor's license a requirement.

106
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Implementation 

Timeline 

Approximately five months are needed to introduce an RCx program, although this may be sensitive 

to the availability of local commissioning providers. The table below illustrates typical activities and 

associated timeframes. It does not include time that may be needed to hire implementation 

contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design and Creative

Develop collateral materials for business owners and managers, 

and for commissioning providers

Establish recruitment strategies and procedures

Task 2: Marketing Materials Execution and Delivery

Print consumer collateral materials

Identify processes and procedures for qualifying commissioning 

providers. Market directly to commissioning providers.

Identify comissioning providers, key business owners, managers 

and industry associations

Identify and market the pre-screening process for selecting 

customer participants.

Launch marketing campaign

Task 3: Recruiting, and Pilot Phase

Recruit commissioning providers

Select a pilot market to test recruitment, application and 

procedures. Initiate first Rx project

Expand recruitment of commissioning providers and promotions

Task 4: Account Management

Identify additional training requirements for building operators

Implement ongoing monitoring process for sustained performance

Task 5: Tracking Database Design and Set Up

Customize Program Database 

Implement tracking

Task 6: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Verify eligibility on all submitted claims

Conduct on-site verification of all installations

Task 7: Program Management and Administration

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

107
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Illustrative 

Program 

Performance 

Savings 

Savings for RCx projects vary widely depending on the baseline efficiency of the facility, as well as 

facility size and type, the types of measures installed, and incentive levels. Generally, savings of 

4,000 to 20,000 Mbtu per RCx project are realistic. 

Participation and Budget 

An aggressive RCx program could reach about 0.5% of eligible facilities after three years. An 

illustrative three year participation schedule is shown below. Under a non-aggressive scenario, 

participation after three years may be closer to 0.1-0.2%. 

RCx projects tend to be expensive, as they involve extensive on-site analysis and training. One 

program reported average per participant costs of about $200,000, though the savings were 

commensurately higher, around 20,000-25,000 Mbtu per project. An illustrative RCx program 

participation schedule with implementation costs is shown below. 

1 2 3Cumul

Population of Eligible C&I Customers 20,000                                    20,000                     20,000                  20,000

Participants                          25                          35                             40                        100

Participation rate 0.13% 0.18% 0.20% 0.50%

Jobs Created                          19                          18                             21                          58

Program Cost 1,250,000 $          $         1,680,000 $            1,880,000 $         4,810,000

Average

Average Cost per Participant $50,000 $48,000 $47,000 48,100 $               

Jobs per $1M                          15                          11                             11                          12

Per Unit Source MBtu Saved (elec) 4,000                                        5,000                       5,500                    4,950

Per Unit Source MBtu Saved (gas)                        500                        800                       1,100                        845

MBtu Saved                112,500                203,000                   264,000                579,500

Source Mbtu saved per $1,000                          90                        121                           140                        120

ative

108
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of 

program. 

 Unique participant ID 

 Participant business NAICS code 

 Participant contact information 

 Commissioning provider name and contact information 

 Current commissioning phase and date 

 Facility baseline energy consumption 

 Pre-and post-commissioning 

 Pre and post-ENERGY STAR Portfolio Manager Energy Performance Rating 

 For any projects completed: A unique project ID, contractor name and contact information, 

measures installed, the project incentive amount, and anticipated project savings 

Savings 

RCx projects typically require custom (calculated) savings estimates. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of commissioned facilities, the nature of 

the energy efficiency improvements installed, usage characteristics of the facility, and whether or not 

the business owner would have undertaken the projects in the absence of the program. Typical 

savings verification techniques include spot-metering, detailed engineering calculations, and billing 

analysis. The evaluator should also estimate the persistence of savings from RCx activities. 

Methods used vary widely based upon the need for precision in the estimates and the perspective of 

the program sponsor or regulators. In general, EM&V costs range between 1% and 8% of the overall 

program budget, and are most typically around 3-4%. 

Resources and 

Assistance  ENERGY STAR Portfolio Manager: www.energystar.gov/benchmark

 ENERGY STAR Guidelines for Energy Management: www.energystar.gov/guidelines

 ENERGY STAR Building Upgrade Manual: www.energystar.gov/bldgmanual

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

 Building Commissioning Association: www.bcxa.org

109
PROGRAM NR2. Non-Residential Retrocommissioning (RCx)

Program 

Characteristics 

Summary 

RCx is a good match for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. An RCx program requires expertise in building commissioning—these jobs 

require a higher skill level and pay than is required for some programs. Further, these jobs often 

entail skills that prepare the employee for a broad range of potential future opportunities in the 

fields of building science, facility management, and energy efficiency. 

2. Collaboration and Leverage of Funds. RCx offers an excellent opportunity to collaborate with 

the EPA through the use of its Portfolio Manager, and with utility companies, state and local 

agencies, and local commissioning providers. 

3. Significance of Program Savings. RCx programs tend to yield very high energy savings per 

customer, which translates into real cost savings for participating businesses. Lowering 

operational costs increases profit; this can be reinvested in additional energy saving opportunities 

and/or human resources. 

4. Cost of Savings. RCx is an expensive program due to the comprehensive and time-consuming 

nature of the commissioning process, as well as the level of expertise required to complete it. 

However, these expenses are also the key drivers of the program’s strong performance relative to 

job creation, quality, and accountability. The program is very cost-effective because it takes a 

whole-facility approach to reducing energy use, and sustains savings by training building owners 

and operators to maintain optimal building performance after the program has pulled out. 

5. Sustainability and Market Transformation. RCx helps create sustained energy savings 

because it goes well beyond reducing prices on efficient equipment. The program teaches 

building owners and operators how run to their facilities more efficiently, and that by doing so they 

are also reducing operating costs, as well as improving building health and safety.

110
NR3: Commercial Food Service 

111
PROGRAM NR3. Commercial Food Service Program

Program 

Summary 

A Commercial Food Service (CFS) program rebates energy-efficient commercial food service 

equipment such as refrigerators, freezers, steamers, fryers, hot food holding cabinets, ice machines, 

dishwashers, ovens, and other technologies. The primary aim is to influence the buyer to purchase 

more efficient equipment when their existing equipment has failed. 

The existing ENERGY STAR specifications should be utilized to denote efficient equipment eligible for 

rebates, and will help with marketing the product to the supply chain and the end users. States with 

advanced codes for some equipment types may also wish to offer incentives at CEE (Consortium for 

Energy Efficiency) levels. The food service network of market actors is complicated, consisting of 

manufacturers, manufacturers’ reps, dealers, dealer reps, equipment stores, and often cash-strapped 

end-users including restaurants, schools, hotels and motels, and hospitals. The network varies locally 

and regionally. 

Best practices include cultivating the food service network, providing identifiable point of purchase 

marketing with eligible rebate amounts at the distributors’ warehouses, actively training and offering 

incentives to equipment distributors and dealers to market the program, and leveraging ENERGY 

STAR marketing and resources. 

Target Market The program is targeted at commercial food service equipment distributors and dealers who are the key 

access points for delivery of efficient products to restaurants, schools, hotels and motels, and hospitals. 

Independent restaurant chains are also a good target for direct outreach, as influencing the way they specify 

equipment in their franchising requirements can result in a large number of installations over the long-term. 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 Processes for trade ally recruiting, training, and account management 

 Processes for participant marketing, recruiting, training, and account management 

 A process for calculating and disbursing incentives 

 A process for inspecting projects 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 Customer support including a call center and online help 

112
PROGRAM NR3. Commercial Food Service Program

Staffing 

Requirements 

& Job Creation 

Program Administration 

A CFS program requires one program manager and at least two support staff for training, materials 

development, incentive application verification, and project inspection and verification, for programs 

with budgets of $250,000 to $1 million annually. Typically, one additional administration employee is 

needed per $1 million expended by the program. 

Incentives for CFS programs can also be included as part of an existing C&I Standard Offer Program. 

This approach has reduced overhead expenses and offers quicker deployment. However, it likely results 

in fewer equipment installations due to lack of sector-specific education and marketing and it does not 

offer the same potential for creating lasting change in the demand for energy-efficient products and 

services in the marketplace, so is best used as a bridge strategy to an eventual full-scale CFS program. 

Trade Allies 

Trade allies, such as equipment distributors, dealers, manufacturers, and manufacturer reps will largely 

be re-trained and re-oriented to focus effort on manufacturing, distributing, and selling energy-efficient 

equipment, instead of standard equipment. 

Job Creation 

Additional jobs will be created through program administration as well as indirect and induced effects 

such as the additional design and manufacture of new, more energy-efficient equipment and the 

reduced operating costs of restaurants. The latter effect can be particularly significant as utility costs 

are a major operating expense for the CFS industry, which operates on slim profit margins.37 In total, 

expect from 6 to 10 jobs to result per million dollars spent on this program. 

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical 

training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

ENERGY STAR Sales 

Training Presentation (Link) N/A Low-Medium 

Program-Specific Training Resources 

How long will training take? Notes 

0.5 - 1 day 

Expected that 1-2 days of 

general EE and ENERGY STAR 

training may also be needed.

 

37 National Restaurant Association, 2008. 2007/2008 Restaurant Industry Operations Report, as cited in the National 

Restaurant Association, 2008 Restaurant Industry Forecast. 

113
PROGRAM NR3. Commercial Food Service Program

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The table 

below illustrates typical activities and associated timeframes. It does not include time that may be 

needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design 

Identify key restaurants, food service franchises and institutions 

to target

Develop collateral materials for end use customers and food 

service distributors

Establish recruitment procedures and application processes

Task 2: Marketing Materials Execution and Delivery

Print consumer collateral materials

Identify key trade ally contacts, including distributors, 

manufacturers and local trade associations. Launch marketing 

campaign.

Task 3: Participant Recruiting and Training

Provide outreach to food service product distributors

Provide outreach to targeted restaurants, food service 

franchises or institutions with food service.

Hold group implementation meetings with participating food 

service suppliers and distributors (review program policies, etc.)

Begin rebate administration.

Task 4: Incentive Application Validation and Processing 

Verify all incentive applications for correct measures and 

eligibility.

Task 5: Tracking Database Design and Set Up

Customize Program Database 

Implement results tracking

Task 6: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Task 7: Program Management and Administration

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

114
PROGRAM NR3. Commercial Food Service Program

Illustrative 

Program 

Performance 

Energy Savings 

Energy savings will vary based on the equipment and its use from one participant to the next, and the 

types of equipment needed varies in the local markets. An illustrative program, run by a large utility in 

the West, saved about 40 million source Btu per $1,000 over three years. 

Participation and Budget 

An illustrative three year participation schedule is shown below for a CFS Program run in a region with 

90,000 independent and chain restaurant locations. This example shows an aggressive and wellfunded program that was able to reach over 3% of new equipment sales by the third year. Under a less 

aggressive program, perhaps 1% of new equipment sales could be reached in that time frame. 

Illustrative program implementation costs are expected to range from $1,000 to $1,500 per piece of 

equipment. Experience shows that 50-60% of the budget is expected to be spent on incentives and 

rebates, while 40-50% is spent on program administration, training, marketing, and other costs. An 

illustrative participation schedule and budget are shown in the table below. 

1 2 3Cumul

Eligible Equipment 40,000                                  40,000                 40,000             40,000

Participants 675                                          1,000                   1,400               3,075

Participation rate 1.7% 2.5% 3.5% 7.7%

Jobs Created                            7                         10                         12                     29

Program Cost 843,750 $            $        1,420,000 $        2,044,000 $    4,307,750

Average

Average Cost per Participant 1,250 $                 $                1,420 $                1,460               1,400

Jobs per $1M                            8                            7                            6                        7

Per Unit Source MBtu Saved (elec)                         23                         49                         39                     39

Per Unit Source MBtu Saved (gas)                         10                         22                         17                     17

MBtu Saved 22,000                                  71,000                 79,000           172,000

Source Mbtu saved per $1,000                         26                         50                         39                     40

Year

ative

115
PROGRAM NR3. Commercial Food Service Program

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Unique participant ID 

 Contractor name and contact information 

 Measures installed and their anticipated savings 

 Verification of measure installation for a sample of projects 

Savings 

Deemed savings estimates are typically used for CFS programs. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators, and typically focuses on establishing the kW, kWh, and Btu saved by the program through a 

more rigorous evaluation of the equipment installed, verification of installation and satisfaction with the 

energy-efficient equipment, and actual usage characteristics and utility consumption of the business. 

Methods used vary widely based upon the need for precision in the estimates and the perspective of 

the program sponsor or regulators. In general, EM&V costs range between 1% and 8% of the overall 

program budget, and are most typically around 3-4%. 

Resources and 

Assistance  ENERGY STAR Commercial Food Service: http://www.energystar.gov/cfs

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

 Consortium for Energy Efficiency Commercial Kitchens Initiative: http://www.cee1.org/com/com-kit/

com-kit-main.php3

116
PROGRAM NR3. Commercial Food Service Program

Program 

Characteristics 

Summary 

Commercial Food Service is a good match for stimulus funding, but due to its more complex 

implementation nature and relatively smaller employment impact, it is a better program in areas with 

established efficiency infrastructure, experience, and larger budgets. Its characteristics relative to the 

key criteria identified previously include: 

1. Impact on Jobs. A commercial food service program, because it is primarily based on the 

purchase of energy-efficient equipment instead of standard efficiency equipment upon the failure of 

a unit, does not create as many jobs as other rapid deployment programs that require contractors to 

inspect homes or businesses and install retrofit equipment. Direct employment occurs with the 

program administrators and implementation contractors. Indirect and induced benefits occur at the 

participant level, as their energy bills are reduced giving them more operating capital to sustain and 

grow their business, and for manufacturers and distributors who can make higher profits off of more 

expensive energy-efficient equipment. 

2. Collaboration and Leverage of Funds. Commercial food service provides an excellent opportunity 

to leverage EPA/DOE resources for ENERGY STAR qualified products rebated through the program, 

and to collaborate with utility companies, state and local agencies, and local trade allies and their 

associations, both local and national. ENERGY STAR provides marketing materials, case studies, a 

restaurant guidebook, product calculators, and a quarterly newsletter to support program 

administrators and share best practices. National associations, including NAFEM (the National 

Association of Food Equipment Manufacturers) and SEFA (Supply & Equipment Foodservice Alliance) 

host annual conferences that are well-attended by energy efficiency program administrators. 

3. Significance of Program Savings. On a per-dollar and per-equipment basis, commercial food 

service provides a lesser impact on energy savings than other programs. However, typical 

participants such as restaurants, hospitals, and hotels/motels can achieve significant and longlasting savings for equipment purchases. If funding allows for an aggressive program to be 

implemented, many participants can achieve significant energy savings by getting incentives on 

multiple pieces of equipment that they otherwise could not afford. 

4. Cost of Savings. Commercial food service is moderately cost-effective compared with other rapid 

deployment options. Compared with similar programs offering simple cash-back rebates on new 

equipment, such as a Commercial and Industrial Sector Standard Offer Program this program is a 

less cost-effective avenue to energy savings. Increased cost-effectiveness comes through reducing 

overhead while paying incentives for a larger volume of projects. Participation is relatively simple 

due to the straightforward rebate. Despite being comparatively expensive, experience with this 

program shows it does exceed the FOA’s guidance for 10 MBtu per $1,000. 

5. Sustainability and Market Transformation. Commercial food service is an excellent program for 

sustainable energy savings and market transformation. Initial rebates that encourage participants to 

purchase more efficient equipment open the door to understanding the long-term energy savings 

available to them. The long life of food service equipment ensures that reduced energy costs will 

persist. Over time, as the food service program grows, a participant could obtain huge energy 

savings by adopting multiple pieces or complete kitchens full of more efficient equipment. 

Sustained programs could also persuade restaurant chains to specify energy-efficient products in 

their franchise agreements resulting in more widespread market transformation.

117
NR4: Commercial & Industrial (C&I) Custom 

118
PROGRAM NR4. C&I Custom

Program 

Summary 

A C&I Custom Program supports C&I customers in identifying and implementing site-specific and 

unique cost-effective energy efficiency opportunities, which often require engineering calculations to 

determine energy savings. A typical project may involve industrial process efficiency, chillers/boilers, 

data center efficiency, electric motor retrofits, or projects that otherwise fall outside of the Prescriptive 

program. The strategy is to minimize market barriers to energy efficiency implementation for C&I 

customers, which include higher first costs, lack of customer understanding about measure payback, 

and lack of awareness of energy-efficient technologies. 

The program provides energy audits, co-funding for feasibility studies, best practices training 

(sometimes in collaboration with DOE), and calculated (custom) incentives for energy efficiency 

projects. A feasibility study investigates a proposed energy efficiency project or process improvement. 

Custom programs co-fund studies up to a maximum percentage or funding cap. Incentive levels vary 

widely depending on the size and nature of local industries. The program should develop an estimated 

pre-and post-project Energy Performance Rating using ENERGY STAR’s Portfolio Manager (for certain 

types of commercial buildings). Energy savings per project can be very large, on the order of 100,000 

to 200,000 kWh. It is up to participating businesses to implement projects. In some regions, water 

pumping and treatment represent a large portion of total energy end use. Targeting these end uses for 

custom projects could result in substantial savings. 

ENERGY STAR Portfolio Manager can also be used by both program sponsors and participants for 

tracking progress over time in commercial buildings (monitoring energy efficiency improvements 

compared to baseline; tracking reductions in greenhouse gas emissions; and monitoring energy cost 

savings) and verifying and documenting results (to provide a level of transparency and accountability to 

help demonstrate strategic use of ARRA 2009 funding by generating a Statement of Energy 

Performance for each building, and summarizing important performance). 

Key elements of the program include technical support of customer facility owners and managers, 

comprehensive facility energy audits, and project QA/QC. 

Target Market Custom projects tend to be implemented by businesses with large industrial facilities, but the program 

should be available to all medium and large commercial, industrial, and institutional customers. 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A standardized process for conducting facility audits 

 A standardized process fro calculating and reporting energy savings to the business owner and to the program 

 A standardized process for selecting feasibility studies for co-funding 

 A process for marketing the program to business owners 

 A process for calculating and disbursing incentives 

 A process for inspecting projects 

 A process for ensuring that work performed and contractor business practices meet the quality 

standards of the program 

 A system for tracking and accounting for the program, and for reporting to the program sponsor 

 A process for conducting evaluation, measurement, and verification (EM&V) 

 Customer support, including a call center and on the program Web site 

119
PROGRAM NR4. C&I Custom

Staffing 

Requirements 

& 

Job Creation 

Program Administration 

Depending on the size of the program, a Custom Program requires 3-5 full-time employees. At a 

minimum, the program requires one manager, and two staff engineers for conducting facility audits, 

reviewing project documentation, and inspecting projects. As the program grows over time, the need 

for additional engineers will increase. 

Participating Contractors 

Although the program conducts audits, co-funds feasibility studies, reviews project documentation, and 

inspects projects, it is up to the participant to implement projects. As such, the program does not directly 

recruit installation contractors. By the end of the second year, you can expect to have about 50 contractors 

implementing energy efficiency projects for Custom participants per million in program spending, although 

this is very sensitive to the scale of individual contracting organizations and the size of the market. 

Job Creation 

This program helps develop the market for industrial engineers, on-site energy managers, and 

associated trade allies. Additional jobs will be created in related fields as a result of program spending. 

In total, expect from 15 to 18 jobs to result per million dollars spent on this program. 

120
PROGRAM NR4. C&I Custom

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The table 

below illustrates typical activities and associated timeframes. It does not include time that may be 

needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Design Marketing Materials

Identify commercial sectors to target

Develop collateral materials for business owners and managers

Develop program Web site

Task 2: Marketing Materials Execution and Delivery 

Print collateral material

Outreach to business owners and managers

Conduct PR / Media Effort

Task 3 Energy Audits

Begin conducting energy audits

Task 4: Incentive Application Calculation and Processing 

Calculate incentives and disperse for each project

Task 5: Program Hotline Support

Provide C&I Program resources to Hotline

Develop complaint resolution process/plan

Provide call service for customer questions and scheduling 

appointments

Task 6: Tracking Database Design and Set Up 

Determine what database needs are

Customize Program Database

Report to Program Sponsor (as requested)

Task 7: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Inspect projects / EM&V

Implement quality assurance protocols

Task 8: Program Management, Administration, and Support 

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

121
PROGRAM NR4. C&I Custom

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical 

training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

Association of Energy 

Engineers Online Seminars 

(Link) 

Certified Energy Auditor Exam 

(Link) 

Professional Engineer’s 

License (Link) 

High 

Program-Specific Training Resources 

How long will training take? Notes 

1-3 days 

Some states may already or may 

want to consider making contractor's 

license a requirement.

122
PROGRAM NR4. C&I Custom

Illustrative 

Program 

Performance 

Energy Savings 

Energy savings will vary considerably by state/industry. One custom program in the Midwest verified 

energy savings of about 2,450 Mbtu per participant. 

Incentives for custom projects are typically calculated on a per-kW and/or per kWh and/or per Therm 

basis. See below for examples of incentive calculations for projects carried out by two customers. 

Savings estimates for custom projects are sometimes deemed (i.e., for lighting measures), but many 

are also based on engineering calculations (i.e., process steam, some HVAC measures, etc.). 

A B C DE F G

Customer Project Incentive Unit Savings

(kW)

Savings

(kWh)

Calculated

Incentive (C*E)

Total

Incentive

Lighting upgrades $             480 per kW                3.5            15,300 $               1,700

Refrigeration upgrades $             410 per kW                0.3              2,320 $                  110

HVAC upgrades $             325 per kW             66.2        457,000 $             21,500

Lighting upgrades $             480 per kW           125.0          937,000 $            60,000

1

2

$         1,810

$       81,500

H

Participation and Budget 

An illustrative three year participation schedule for a C&I Custom Program run in a large Midwestern 

metropolitan area with a million electric customers is shown in the table below. 

Implementation costs can vary widely by state/industry. Illustrative program implementation costs are 

shown below. A different custom program in the Northeast spends about $750,000 per year, and 

acquires about 40 Mbtu/$1,000. 

1 2 3 Cumulati

Population of Eligible C&I Customers 100,000                  100,000         100,000                   100,000

Participants 48                                    111                 102                           261

Participation rate 0.05% 0.11% 0.10% 0.26%

Jobs Created 17                                      33                   31                             81

Program Cost 960,000 $      $  2,220,000 $  2,040,000 $            5,220,000

Average

Average Cost per Participant $20,000 $20,000 $20,000 20,000 $                  

Jobs per $1M 18                                      15                   15                             16

Per Unit Source MBtu Saved (elec) 1,500                          1,500             1,500                       1,500

Per Unit Source MBtu Saved (gas) 950                                  950                 950                           950

MBtu Saved 117,600                  271,950         249,900                   639,450

Source Mbtu saved per $1,000 122.5                          122.5             122.5                       122.5

Year

ve

123
PROGRAM NR4. C&I Custom

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Unique participant ID 

 Participant business NAICS code 

 Participant contact information 

 Contractor name and contact information 

 For each project: A unique project ID, measures installed, the project incentive amount, anticipated 

project savings, pre- and post-project ENERGY STAR Portfolio Manager Energy Performance Rating 

(for commercial buildings), as well as project audit/verification status and date. 

Savings 

Custom (calculated) savings estimates are typically required for Custom energy efficiency projects. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of facilities, the nature of the energy 

efficiency improvements installed, usage characteristics of the facility, and whether or not the business 

owner would have undertaken the projects in the absence of the program. Methods used vary widely 

based upon the need for precision in the estimates and the perspective of the program sponsor or 

regulators. In general, EM&V costs range between 1% and 8% of the overall program budget, and are 

most typically around 3-4%. 

Resources and 

Assistance  DOE Industrial Technologies Program: www1.eere.energy.gov/industry/

 ENERGY STAR Portfolio Manager: www.energystar.gov/benchmark

 ENERGY STAR Guidelines for Energy Management: www.energystar.gov/guidelines

 ENERGY STAR Building Upgrade Manual: www.energystar.gov/bldgmanual

 ENERGY STAR Products page: www.energystar.gov/products

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

124
PROGRAM NR4. C&I Custom

Program 

Characteristics 

Summary 

C&I Custom is a good match for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. A custom program requires expertise in industrial and energy engineering, so 

while the actual number of jobs created may not be that large relative to some programs, the jobs 

do require a high skill level and higher pay (e.g., for conducting industrial energy audits). Further, 

these jobs often entail skills that prepare the employee for a broad range of potential future 

opportunities in the fields of industrial engineering and energy management. 

2. Collaboration and Leverage of Funds. Custom programs provide an excellent opportunity to 

collaborate with utility companies, state and local agencies, local trade allies and their associations, 

as well as the industrial engineering and consulting communities. They also offer a great 

opportunity to collaborate with the US DOE on industrial best practice trainings, and the EPA 

through the use of ENERGY STAR Portfolio Manager. 

3. Significance of Program Savings. Custom programs tend to yield very high energy savings per 

customer, which translates into real cost savings for participating businesses, making them more 

competitive on the global market. The custom program helps businesses increase production, 

make higher quality products, and lower operational costs. 

4. Cost of Savings. The lead time for custom projects can be long, causing the program, especially 

in its first years, to expend considerable resources before realizing significant savings. But because 

of the scale of most projects, custom programs also tend to be very cost-effective, reaching 

upwards of 100 Mbtu per $1000. Industrial customers also tend to constitute a large share of 

system peak load; therefore, the avoided capacity benefits of custom programs are also large. 

5. Sustainability and Market Transformation. Custom programs work with the largest energy users 

in the country to not only install projects that yield substantial energy savings, but fundamentally 

change the way the industry views energy by conducting energy audits, co-funding feasibility 

studies, and training businesses in best practices.

125
NR5: Non-Residential Benchmarking and Performance

126
 

PROGRAM NR5. Non-Residential Benchmarking and Performance

Program 

Summary 

This program works with commercial facility operations staff and owners to benchmark and monitor 

building energy performance using tools such as ENERGY STAR Portfolio Manager and building submetering equipment, as well as to recommend energy efficiency upgrades based on analyses of 

building performance data. 

Commercial Benchmarking and Performance (CBP) involves eight technical and educational services 

to achieve savings: 

1. Collection of key facility operational characteristics and contacts 

2. Ongoing collection of interval energy consumption, sub-metering, data logging, and activity or output 

metrics as appropriate to the facility. The extent of metering equipment installed depends on the 

program’s budget; however, all CBP programs can use tools such as ENERGY STAR Portfolio Manager 

to identify under-performing buildings to target for energy efficiency improvements, and establish 

baselines to set goals and measure progress for energy efficiency improvement projects over time. 

3. Development of building performance metrics 

4. Ongoing calculation and updating of metrics 

5. Communication of metrics to participants 

6. Identification of building system drift (from optimal performance) and alerts (to participants) where 

appropriate 

7. Analysis of facility performance and root cause assessment and communication 

8. Recommendations for energy efficiency upgrades based on analysis and root cause assessment 

Tools such as ENERGY STAR Portfolio Manager can be used to provide a level of transparency and 

accountability to help demonstrate strategic use of ARRA 2009 funding by generating a Statement of 

Energy Performance (SEP) for each building, and summarizing important performance indicators, 

including energy use intensity and greenhouse gas emissions associated with building energy use. 

When the program pulls out, facility staff should be able to continue competently conducting building 

benchmarking, monitoring, analysis, and performance upgrades on their own. 

Target Market This program is open to all commercial customers that meet certain criteria. Such criteria may include: 

 A size minimum (though priority should be given to businesses with facilities that have high energy 

use intensities). 

 The facility must be free of major problems requiring costly repairs or replacements and have no 

planned major system renovations or retrofits. 

 The facility must have accessible and up-to-date building documentation and records. 

127
PROGRAM NR5. Non-Residential Benchmarking and Performance

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A process for estimating facility baselines 

 A process for selecting and installing the appropriate metering equipment (if using) 

 A process for developing building performance benchmarks 

 A standardized process for alerting participants and program staff when a building system drifts (from 

optimal performance) 

 A standardized process for transmitting and tracking interval meter data (if available through sub-metering) 

 A standardized process for reporting building performance on a monthly, quarterly and annual basis 

to the program sponsor 

 A process for marketing the program to business owners and building managers 

 A process for calculating and disbursing incentives 

 A process for transitioning program services to participants 

 A process for conducting evaluation, measurement, and verification (EM&V) 

Staffing 

Requirements 

Program Administration 

Depending on the size of the program, CBP requires 2-4 full-time employees. At a minimum, the 

program requires one manager (an individual with significant building performance and/or building submetering experience), and a staff engineer. Building operator education is essential to this program’s 

success, so program staff will spend a significant amount of time with participants reviewing data, and 

recommending efficiency improvements based on data analysis. As the program grows over time, the 

need for additional engineers will increase. 

Participating Contractors 

If the CBP program sponsor opts to use building sub-metering equipment, the program will need to 

select at least one metering equipment provider/company to assist with meter installation, interval data 

storage, reporting, and analysis. 

Job Creation 

This program helps develop the market for building performance specialists, metering equipment, 

building operators and managers, and installation contractors. Additional jobs will be created in related 

fields as a result of program spending. In total, expect from 5 to 15 jobs to result per million dollars 

spent on this program. 

128
PROGRAM NR5. Non-Residential Benchmarking and Performance

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

ENERGY STAR Portfolio 

Manager: 

1. Live Training webinars (Link) 

2. Pre-recorded Sessions (Link) 

3. Benchmarking Starter Kit 

(Link) 

Building Owners and Managers 

Association (BOMA) and the 

BOMA Energy Efficiency Program 

(BEEP) offer trainings through 

local chapters and online 

trainings. (Link)

Building Operator Certification 

Trainings and Certifications (Link) 

Certified Energy Manager 

Trainings and Certification (Link) 

Professional Engineer’s License 

(Link) 

LEED Accredited Professional 

(Link) 

Medium 

Program-Specific Training Resources 

How long will training take? Notes 

1-3 days Training focuses on use of the 

Portfolio Manager tool.

129
PROGRAM NR5. Non-Residential Benchmarking and Performance

Implementation 

Timeline 

This ramp-up schedule is sensitive to the availability of building metering/sub-metering providers (and 

to whether the program opts to use sub-meters). An illustrative CBP program ramp-up schedule is 

shown below. This program can be ramped up quickly and scaled appropriately to available funding 

levels. The table below illustrates typical activities and associated timeframes. It does not include time 

that may be needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Marketing Program Design

Task 2: Marketing Materials Execution and Delivery

Print consumer collateral materials

Select a pilot market to test recruitment, participation in Portfolio 

Manager training sessions, application and incentive levels (if 

incentives are included).

Launch marketing campaign

Task 3: Participant Recruiting, Training, and Pilot Phase

Provide outreach to trade ally's who provide benchmarking services. 

Provide outreach to targeted business owners and operators.

Promote online ENERGY STAR Benchmarking training sessions for 

staff, trade ally's and customers. Strategic Energy 

Management/Action Plan Development; provide education and 

guidance to program participants and service providers on the value 

of an integrated approach to improving building performance.

Task 4: Trade Ally Training and Account Management

Hold training meetings with trade ally's who perform technical and 

marketing services to businesses.

Task 5: Incentive Application Validation and Processing 

Perform incentive verification or PE Certification, if applicable.

Task 6: Tracking Database Design and Set Up

Customize Program Database 

Implement participation tracking

Task 7: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Implement quality assurance protocols

Task 8: Program Management and Administration

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Activity Months in Year 1

130
PROGRAM NR5. Non-Residential Benchmarking and Performance

Illustrative 

Program 

Performance 

Savings 

Energy savings of existing CBP programs vary widely (depending largely on facility type, size, and 

baseline efficiency, and whether or not gas savings are verified), but generally CBP savings tend to be 

in the range of 1,000-3,000 Mbtu per participant. 

Participation and Budget 

A moderately aggressive CBP program could reach about 0.5% of eligible facilities after three years. 

An illustrative three year participation schedule is shown below. Under a non-aggressive scenario, 

participation after three years may be closer to 0.25%. 

CBP program costs vary widely depending on whether the program sponsor has sufficient budget to submeter facilities, and the extent of sub-metering implemented. The illustrative CBP program implementation 

costs shown below contain the minimum per participant cost required if the program uses sub-metering 

equipment; more extensive sub-metering, along with associated analysis and support services from a 

sub-metering contractor, can cost upwards of $90,000-100,000 per participant. If the program opts to not 

use sub-metering equipment, per participant costs are closer to $20,000-25,000.

1 2 3 Cumulative

Population of Eligible C&I Customers 20,000                     20,000            20,000                20,000

Participants 20                                     30                    40                        90

Participation rate 0.10% 0.15% 0.20% 0.45%

MBtu Saved 45,000                     87,000          132,000             260,550

Program Cost 800,000 $    $   1,200,000 $   1,600,000 $      3,600,000

Average

Average Cost per Participant $40,000 $40,000 $40,000 40,000 $            

Jobs per $1M 15                                     11                    11                        12

Jobs Created 12                                     13                    18                        43

Per Unit Source MBtu Saved (elec) 2,000                         2,500              2,750                  2,475

Per Unit Source MBtu Saved (gas) 250                                 400                  550                      420

Source Mbtu saved per $1,000 56                                     73                    83                        72

Year

131
PROGRAM NR5. Non-Residential Benchmarking and Performance

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of program. 

 Unique participant ID 

 Participant business NAICS code 

 Participant contact information; facility baseline energy consumption 

 Pre- and post-project ENERGY STAR Energy Performance Rating 

 For each project completed: A unique project ID, contractor name and contact information, measures 

installed, the project incentive amount and anticipated project savings 

Savings 

Custom (calculated) savings estimates are typically used for this type of program. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of commissioned facilities, the nature of 

the energy efficiency improvements installed, usage characteristics of the facility, and whether or not 

the business owner would have undertaken the projects in the absence of the program. Evaluators can 

use the interval data and facility data collected by the program to estimate building baselines and 

energy savings. Methods used vary widely based upon the need for precision in the estimates and the 

perspective of the program sponsor or regulators. In general, EM&V costs range between 1% and 8% 

of the overall program budget, and are most typically around 3-4%. 

Resources and 

Assistance  ENERGY STAR Portfolio Manager: www.energystar.gov/benchmark

 ENERGY STAR Guidelines for Energy Management: www.energystar.gov/guidelines

 ENERGY STAR Building Upgrade Manual: www.energystar.gov/bldgmanual

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

 Building Operator Certification: http://www.theboc.info

 BOMA Building Energy Efficiency Program: www.BOMA.org/BEEP

 Green Globes Certification: www.greenglobes.com

132
PROGRAM NR5. Non-Residential Benchmarking and Performance

Program 

Characteristics 

Summary 

CBP is a good match for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. The CBP program requires expertise in building performance and building submetering—these jobs require a higher level of skill and pay than is required for some programs. 

Further, these jobs often entail skills that prepare the employee for a broad range of potential future 

opportunities in the fields of building science, facility management, building metering and energy 

efficiency. 

2. Collaboration and Leverage of Funds. CBP is also an excellent opportunity to collaborate with the 

EPA/DOE through the use of its Building Portfolio Manager, and with utility companies, state and 

local agencies, and local commercial building contractors. 

3. Significance of Program Savings. CBP programs tend to yield high energy savings per customer, 

which translates into real cost savings for participating businesses. Lowering operational costs 

increases profit; this can be reinvested in additional energy saving opportunities, including human 

resources. 

4. Cost of Savings. CBP results in very cost effective savings, but may require significant upfront 

investment in both equipment and personnel required to carry-out building sub-metering, system 

benchmarking and facility owner and operator education. However, these expenses are also the key 

drivers of the program’s strong performance relative to job creation, quality, and accountability. The 

program is very cost-effective because it takes a whole-facility approach to reducing energy use, 

and sustains savings by training building owners and operators to maintain optimal building 

performance after the program has pulled out. 

5. Sustainability and Market Transformation. CBP helps create sustained energy savings because 

it goes well beyond reducing prices on efficient equipment. The program works closely with building 

owners and operators to optimize building performance by teaching them how to analyze and 

respond to building energy performance data. Buildings that undergo the CBP process not only 

have efficient equipment, but efficient equipment that runs optimally over the long haul.

133
NR6: Non-Residential On-Site Energy Manager 

134
PROGRAM NR6. Non-Residential On-Site Energy Manager

Program 

Summary

This program assists businesses by hiring and training an On-Site Energy Manager (OEM) to work with 

them for a six month period. During their tenure with a business, the OEM will evaluate facilities’ energy 

use and work with maintenance staff to reduce energy usage and costs. Long-term energy and cost 

savings of 10 to 15 percent are achievable, largely through behavioral changes. ENERGY STAR 

recommends a seven-step process for instituting efficient energy management: 

 STEP 1: Make Commitment 

 STEP 2: Assess Performance 

 STEP 3: Set Goals 

 STEP 4: Create Action Plan 

 STEP 5: Implement Action Plan 

 STEP 6: Evaluate Progress 

 STEP 7: Recognize Achievements 

Incentives for businesses can include a sign-up bonus grant (a % of the OEM’s salary), performance 

based incentives (for achieving savings targets), free energy resource accounting software, and 

ongoing OEM training and technical support. 

Target Market A typical participant is a business with a large facility portfolio (1+ million square feet of conditioned space), 

though priority should be granted to businesses with facilities that have high energy use intensities. 

Infrastructure 

Requirements 

The primary infrastructure required to deliver this program includes: 

 A process for screening applicants 

 A process for hiring and training OEMs 

 A standardized energy management process or manual for OEMs to implement 

 A standardized process for reporting building performance 

 A process for marketing the program to business owners and building managers 

 A process for calculating and disbursing incentives 

 A process for conducting evaluation, measurement, and verification (EM&V) 

Staffing 

Requirements 

Program Administration 

This program requires, at a minimum, one manager and a staff building energy engineer. As the 

program grows over time, the need for additional engineers will increase. 

Participating Contractors 

This program requires one full time OEM per participant for a 6 month interval. If you have 40 

participants in your first program year, for example, you will need at least 20 OEMS (assuming the 

OEM will work with 2 participants per year). 

Job Creation 

This program helps build the market for energy managers, building operators and managers, and 

installation contractors. Additional jobs will be created in related fields as a result of program spending. 

In total, expect from 5 to 11 jobs to result per million dollars spent on this program. 

135
PROGRAM NR6. Non-Residential On-Site Energy Manager

Contractor 

Training Needs 

and Resources 

There are two types of contractor training required. The first involves technical skill sets and training 

required by contractors to perform program services. The second is program specific training; that is, 

training carried out by the program administrator and/or third party implementation contractor on 

program policies and procedures. Sometimes, program-specific training also involves technical training. 

Contractor Technical Training Resources 

Content Training 

Resources 

Technical Certification 

Resources 

Skill Level 

Required 

Example Program – Puget Sound 

Energy’s Conservation Resource 

Manager (Link) 

ENERGY STAR Guidelines for 

Energy Management (Link)

Building Operator Certification 

Trainings and Certifications (Link) 

Certified Energy Manager 

Trainings and Certification (Link) 

Medium-High 

Program-Specific Training Resources 

How long will training take? Notes 

1-5 days 

Initial workers will be program certified, 

but this could lead to becoming a 

Certified Energy Manager (CEM)

136
PROGRAM NR6. Non-Residential On-Site Energy Manager

Implementation 

Timeline 

This program can be ramped up quickly and scaled appropriately to available funding levels. The table 

below illustrates typical activities and associated timeframes. It does not include time that may be 

needed to hire implementation contractors (typically four to seven months). 

1 2 3 4 5 6 7 8 9 10 11 12

Task 1: Design Marketing Materials

Develop collateral materials for business owners and managers

Develop program Web site

Task 2: Marketing Materials Execution and Delivery 

Print collateral material

Outreach to business owners and managers

Conduct PR / Media Effort

Task 3: Participant Recruiting, Training, and Support 

Recruit On-Site Energy Managers (OEMs)

Train OEMs

Task 4: Incentive Application Calculation and Processing 

Calculate incentives and disperse for each project

Task 5: Program Hotline Support

Provide C&I Program resources to Hotline

Develop complaint resolution process/plan

Provide call service for customer questions and scheduling 

appointments

Task 6: Tracking Database Design and Set Up 

Determine what database needs are

Customize Program Database

Report to Program Sponsor (as requested)

Task 7: Quality Assurance & Quality Control (QA/QC) 

Develop quality assurance plan

Inspect projects / EM&V

Implement quality assurance protocols

Task 8: Program Management, Administration, and Support 

Monthly meetings with Program Manager, staff

Monthly progress reports

Final year-end report 

Task 9: Evaluation, Measurement & Verification (EM&V)

Develop EM&V protocols

Implement EM&V protocols

Months in Year 1 Activity

137
PROGRAM NR6. Non-Residential On-Site Energy Manager

Illustrative 

Program 

Performance 

Savings 

Energy savings of existing OEM programs vary widely depending largely on facility type, size, and 

baseline efficiency, and other factors, but are generally in the range of 10-15% (of annual energy). 

Participation and Budget 

An aggressive OEM program could reach about 0.5% of eligible facilities after three years. An 

illustrative three year participation schedule is shown below. Under a non-aggressive scenario, 

participation after three years may be closer to 0.1%. 

Illustrative OEM program implementation costs are shown below. Per participant costs are high 

because of the OEM income assistance provided by the program. 

1 2 3 Cumulative

Population of Eligible C&I Customers 20,000                          20,000             20,000               20,000

Participants 20                                            40                      45                     105

Participation rate 0.10% 0.20% 0.23% 0.53%

MBtu Saved 90,000                        180,000           202,500             472,500

Program Cost 1,000,000 $     $    1,920,000 $    2,081,250 $      5,001,250

Average

Average Cost per Participant $50,000 $48,000 $46,250 47,600 $            

Jobs per $1M 11                                              9                        5                          8

Jobs Created 11                                            17                      10                       39

Per Unit Source MBtu Saved 4,500                                4,500                4,500                 4,500

Source Mbtu saved per $1,000 90                                            94                      97                    94.5

Year

138
PROGRAM NR6. Non-Residential On-Site Energy Manager

EM&V Program Tracking Recommendations 

The following list includes items typically contained in a program tracking database for this kind of 

program. 

 Unique participant ID 

 Participant business NAICS code 

 Participant contact information 

 On-Site Energy Manager name 

 Facility baseline energy consumption 

 For any projects completed: Unique project ID, contractor name and contact information, measures 

installed, the project incentive amount and anticipated project savings 

Savings 

Custom (calculated) savings estimates are typically used for this type of program. 

In some cases, additional measurement and verification may be required by the program sponsor or 

regulators and typically focuses on establishing the kW, kWh, and Btu saved by the program through 

an evaluation of the existing baseline conditions of a sample of participant facilities, the nature of the 

energy efficiency improvements installed, usage characteristics of the facility, and whether or not the 

business owner would have undertaken behavioral changes in the absence of the program. Evaluators 

can use the interval data and facility data collected by the program to estimate building baselines and 

energy savings. Methods used vary widely based upon the need for precision in the estimates and the 

perspective of the program sponsor or regulators. In general, EM&V costs range between 1% and 8% 

of the overall program budget, and are most typically around 3-4%. 

Resources & 

Assistance  ENERGY STAR Guidelines for Energy Management: www.energystar.gov/guidelines

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits

139
PROGRAM NR6. Non-Residential On-Site Energy Manager

Program 

Characteristics 

Summary 

OEM is a strong candidate for stimulus funding. Its characteristics relative to the key criteria identified 

previously include: 

1. Impact on Jobs. The OEM program requires expertise in building energy management; these jobs 

require a higher level of skill and pay than is required for some programs. Further, these jobs often 

entail skills that prepare the employee for a broad range of potential future opportunities in the fields 

of building science, facility management, and energy efficiency. 

2. Collaboration and Leverage of Funds. OEM provides an excellent opportunity to collaborate with 

utility companies, state and local agencies, and local commercial energy managers. OEM is also a 

strong opportunity to leverage EPA’s expert resources in energy management. 

3. Significance of Program Savings. OEM programs tend to yield very high energy savings per 

customer, which translates into real cost savings for participating businesses. Lowering operational 

costs increases profit; this can be reinvested in additional energy saving opportunities, including 

human resources. 

4. Cost of Savings. OEM is an expensive program because it places a full time employee on each job 

site. However, this expense is the key driver of the program’s strong performance relative to job 

creation, quality, and accountability. The program is very cost-effective because it takes a wholefacility approach to reducing energy use, and sustains savings by training building owners and 

operators to maintain optimal building performance after the program has pulled out. 

5. Sustainability and Market Transformation. OEM helps create sustained energy savings because 

it goes well beyond reducing prices on efficient equipment. The program works closely with building 

owners and operators to optimize building performance, creating lasting savings, and transforming 

the market from the inside-out.

140
141

5-B: Marketing Strategies & Tactics for Non-Residential Programs 

Non-residential programs are largely contractor and supplier driven, so mass media is generally 

not as important as it is with residential initiatives, although advertisements in trade publications 

and attendance at trade events can be effective. 

Both residential and non-residential programs should leverage the activities and influence of 

local and state sector-based associations. For example, a C&I Prescriptive or Custom program 

might work with organizations such as school business officials, chambers of commerce, local 

hospitality associations to reach restaurants and hotels, and the hospital engineers’ chapter (to 

reach the health care sector) in order to effectively disseminate information about program 

offerings and benefits. Working within these existing channels not only helps maximize effective 

use of marketing dollars, but fosters market transformation by influencing the market actors that 

are already well established in the community and state. 

Marketing Plan Templates 

These marketing plan templates provide examples of how to effectively promote the various 

types of RDEE Programs. Included below are templates for: 

 Prescriptive Programs 

 Retrocommissioning (RCx) Programs 

 Commercial Food Service 

 Benchmarking and Performance 

Many of the strategies and tactics included in these templates apply across program types. For 

example, much of the Non-Residential Prescriptive marketing plan template is applicable to a wide 

variety of commercial and industrial program promotion efforts where both business owners and 

contractors need to be influenced. Program managers can work from these templates as a 

framework for developing their own marketing plans, or, if the program administrator is in the 

process of selecting an implementation contractor through an RFP process, for helping screen the 

quality of the prospective contractors’ own marketing plans. 
5-B-1: Marketing Plan Template: Non-Residential Prescriptive Program 

Preliminary Considerations 

To develop an effective marketing plan for a Non-Residential Prescriptive Program, program 

sponsors should first consider the following questions: 

 Who is the target audience for the marketing effort? 

 What are the key motivators? 

 What are the competing priorities that are facing the target audience? 

 What message(s) will the marketing effort deliver to the target audience? 

 What marketing tactics will be most-effective in reaching the target audience with the defined 

messages? 

 How will the results of the marketing effort be measured? 

Defining the Target Audience 

Experience has proven that successful programs must reach and engage commercial, industrial, and 

institutional customers. In fact, this group often offers the largest opportunity for energy savings, 

including significant prospects for projects that result in quick payback and energy savings. 

The primary target audience for this plan includes decision makers within each target sector of 

the commercial and industrial (C&I) community (e.g., retail, hospitality, industrial, office, 

warehouse/storage, education). These include: 

 Large Commercial Decision Makers (CEOs, CFOs, COOs, etc.) 

 Purchasing Managers Facility Managers 

 C-Suite Executives 

In addition, there are organizations and individuals that can help to identify, reach, inform, 

educate, and/or engage these decision makers. These could include: 

 Industry-specific trade associations 

 Non-governmental organizations 

 Contractors 

 Distributors 

 Architects, Designers, and Builders 

 State and local governments 

 Unions 

 Small Business Associations 

 Chambers of Commerce 
Defining the Key Motivations and Messages 

Prescriptive programs encourage non-residential customers to upgrade or retrofit working 

equipment with new, energy-efficient equipment. This program has been run cost-effectively in 

nearly every region of the country, and provides an opportunity to quickly deploy energyefficient technologies into a state’s businesses, industries, and schools. 

Focusing on easy opportunities to produce verifiable energy savings—such as lighting upgrades 

from T12 to T8 linear fluorescent lamps, efficient HVAC equipment, and products like motors 

and refrigerators—this program will provide a simple, expedited solution for non-residential 

customers to save energy. The majority of incentives are geared towards customers who are in 

the market for new equipment when their old equipment burns out, though various incentives 

(e.g., quick payback periods, rebates, etc.) can help to encourage early replacement of inefficient 

equipment (retrofit opportunities). 

Keeping these issues in mind, key messages include: 

 Prescriptive programs offer a variety of opportunities for energy efficiency improvements, 

retrofits, modernization, new construction, and purchases. 

 These programs do not require significant upfront cost and provide qualified contractors 

without having to search. 

 Training and program resources can help grow business and enhance a reputation for 

delivering quality equipment in a service area. 

 End-users are increasingly concerned about reducing their energy costs and negative impact 

on the environment. 

 Incentives and rebates will make products more affordable. 

Selecting Marketing Tactics 

A variety of marketing tactics will be necessary to reach C&I target audiences. Marketing plans 

should include a combination of several tactics to create a comprehensive, multi-faceted strategic 

approach to engage contractors, service providers, manufacturers, distributors, retailers, and endusers, such as: 

 Direct Marketing (inserts in business publications, co-op inserts); 

 Web Site and Online Advertising (Search Engine Optimization, Google Key Words, banner 

ads on relevant Web sites); 

 E-Marketing (program email updates, newsletter and special offers); 

 Print (trade publications); 

 Trade shows and other community business events; 

 Public relations and other earned media. 

 Retail Promotion or Point of Purchase (signage at distributor and retail sites to reach both 

contractors and customers) 

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Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Increased sales of new efficient equipment and associated savings; 

 Increased servicing of existing commercial equipment and associated savings; 

 Number of distributors/retailers engaged in the program and the number of their customers 

they serve; 

 Demonstrated increase in consumer awareness of the ENERGY STAR brand; 

 Traffic to program Web site; 

 Retailer and end-user satisfaction (e.g., tracked via surveys, comment cards). 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate the public about 

commercial energy users. These materials are available at: 

http://www.energystar.gov/index.cfm?c=partners.pt_index. 

 ENERGY STAR Logos – can be used in a variety of promotional materials for distribution, 

also provides brand recognition to the program. 

 Publications – a library of all ENERGY STAR published materials with information about 

products, safety and saving tips, and other ways to improve efficiency. 

 Training Center - serves as a resource for partners looking to improve their sales 

effectiveness. Find tools and information to help convey to the staff, customers, or business 

partners how ENERGY STAR can help them protect the environment while saving energy 

and money. 

 National Awareness and Marketing Campaigns – provides background on other initiatives 

and branding taking place with ENERGY STAR. 

 Equipment fact sheets, forms and specification sheets – detailed technical data about 

individual equipment. 
5-B-2: Marketing Plan Template: Non-Residential Retrocommissioning (RCx) Program 

Preliminary Considerations 

To develop an effective marketing plan for Non-Residential Retrocommissioning (RCx) 

program, program sponsors should first consider the following questions: 

 Who is the target audience for the marketing effort? Are there multiple levels of audiences? 

 What are the key motivators for the target audience(s)? 

 What message(s) will the marketing effort deliver to the target audience(s)? 

 What marketing tactics will be most effective in reaching the target audience(s) with the 

defined messages? 

 How will the results of the marketing effort be measured? 

 What are the competing priorities that are facing the target audience(s)? 

 What opportunities exist to market retrocommissioning services with other programs, such as 

prescriptive programs and custom programs, to provide a full package of services to the C&I 

audience? 

Defining the Target Audience 

The best candidates for RCx are typically large facilities or those with high energy use per square 

foot. For RCx to be successful, the facility owner/operator should be ready to commit to active 

involvement in the RCx process as well as to carry out the recommended measures. Therefore, 

marketing should focus on decision-makers within the C&I community. One way to reach these 

decision-makers is through key influencers from trade associations and NGOs who have direct 

access to the power players for clients. 

Defining the Key Motivations and Messages 

RCx marketing should address issues that facility owners and managers are likely to face, such 

as high energy costs and tenant complaints. Key messages for the RCx target audience include: 

 Typical energy savings can range from 5% to 15% without significant capital investment and 

can provide paybacks in less then two years 

 RCx improves occupant comfort and reduces complaints 

 RCx can eliminate building “hot” or “cold” spots 

 RCx can reduce maintenance and repair costs and extend equipment service life 

Selecting Marketing Tactics 

A variety of marketing tactics can be used to reach C&I target audiences. Energy service 

providers can play an important role in reaching their customers (i.e., end users) for this 

program. Marketing plans should include a combination of several tactics to create a 

comprehensive multi-level strategy to engage both service providers and end-users. 

Energy service providers (contractors, distributors, etc.) are essential to the marketing of a 

retrocommissioning program. Providing materials to and enabling these service providers 
through training and knowledge of the programs can have a huge impact on the success. It is 

essential to offer service providers a variety of materials, with both an informative and 

persuasive slant, to cover all potential inquiries. 

The following tactics have the objective of increasing end-user demand for energy-efficient C&I 

products and services: 

 Direct Marketing (inserts in business publications, co-op inserts) 

 Web Site and Online Advertising (Search Engine Optimization, Google Key Words, banner 

ads on relevant Web sites) 

 E-Marketing (program email updates, newsletter and special offers) 

 Print (trade publications) 

 Trade shows and other community business events 

 Public relations and other earned media 

Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Increased upgrades of current equipment to more efficient equipment and associated resulting 

savings 

 Number of distributors/retailers engaged in the program and the number of their customers 

they serve 

 Traffic to program Web site 

 Retailer and end-user satisfaction – e.g., tracked via surveys, comment cards 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate the public about 

commercial energy users. These materials are available at: 

http://www.energystar.gov/index.cfm?c=partners.pt_index. 

 ENERGY STAR Logos – can be used in a variety of promotional materials for distribution, and 

also provides brand recognition to the program. 

 Publications – a library of all ENERGY STAR published materials with information about 

products, safety and saving tips, and other ways to improve efficiency. 

 Training Center – serves as a resource for partners looking to improve their sales effectiveness. Find 

tools and information to help convey to staff, customers, or business partners how ENERGY STAR 

can help them protect the environment while saving energy and money. 

146
147

 National Awareness and Marketing Campaigns – provides background on other initiatives and 

branding taking place with ENERGY STAR. 

 Equipment fact sheets, forms and specification sheets – detailed technical data about 

individual equipment. 
5-B-3: Marketing Plan Template: Commercial Food Service 

Preliminary Considerations 

To develop an effective marketing plan for Commercial Food Service (CFS), program sponsors 

should first consider the following questions: 

 Who is the target audience for the marketing effort? 

 What are the key motivators for the target audience? 

 What message(s) will the marketing effort deliver to the target audience? 

 What marketing tactics will be most-effective in reaching the target audience with the defined 

messages? 

 How will the results of the marketing effort be measured? 

 Who are the largest (based on energy use) potential customers in the area? 

 Who are the largest area CFS dealers, and which distributors and manufacturers serve them? 

Defining the Target Audience 

Successful programs must reach and engage food service equipment distributors and dealers who 

serve as the access points for delivery of products to restaurants, schools, hotels, and hospitals. In 

addition to their ability to reach end-user target audiences, they are also in a position to 

encourage manufacturers to provide energy-efficient equipment.

Distributors and dealers likely to be most receptive to energy-efficient Commercial Food Service 

products and incentives include those whose customers (end-users): 

 Are purchasing new equipment as part of replacing existing equipment or improving their 

current restaurant/hotel/hospital or have local end-users who would benefit from a tune-up on 

their current system; 

 Are opening new facilities that require commercial food service equipment; 

 Consume higher than average amounts of energy; 

 Are required to use products that meet minimum efficiency requirements; 

 Live in areas with high utility rates or areas that recently experienced rate increases; or 

 Are interested in energy efficiency and want to work in a “greener” environment. 

Reaching out to the end-users is also a key to success. Restaurant chains, hotel chains, and 

school districts are among those often considered as primary targets for direct outreach. 

Influencing their purchasing decisions (and requirements) and standards for equipment 

replacement can result in a large number of energy-efficient installations over the long term. In 

addition, increased customer demand will ensure that manufacturers, dealers, and distributors 

offer more new energy-efficient equipment. 

Defining the Key Motivations and Messages 

A good Commercial Food Service (CFS) program offers rebates for energy-efficient commercial 

food service equipment such as refrigerators, freezers, steamers, fryers, hot food holding 
cabinets, ice machines, dishwashers, ovens, and other technologies, primarily aiming to influence 

the buyer to purchase more efficient equipment when their existing equipment has failed. 

The existing ENERGY STAR specifications should be utilized to denote efficient equipment that 

would be eligible for rebates, and will help with marketing the product to the supply chain and 

the end-users. States with advanced codes for some equipment types may also wish to offer 

incentives at Consortium for Energy Efficiency (CEE) levels. The food service network is 

complicated, consisting of manufacturers, manufacturers reps, dealers, dealer reps, equipment 

stores, and often cash-strapped end-users including restaurants, schools, hotels and motels, and 

hospitals. The network varies locally and regionally. 

Given today’s sensitivity to increasing expenditures, many end-users believe that they can best 

maximize profit by increasing prices or eliminating staff rather than through maximizing their 

energy usage and stretching their electric dollar. Even end-users who genuinely want to focus on 

the environment or efficiency may operate from the fundamental belief that the majority of 

consumers are not interested in the processes that produced their meals, leading them to simply 

conclude that “going the extra mile” provides them with no tangible competitive benefit. 

Keeping these issues in mind, key messages for distributors include: 

 Buildings with restaurants and other food service operations are very energy intensive, 

consuming roughly 2.5 times the energy per square foot as other commercial buildings, or 

close to 250,000 British thermal units (Btu) of energy per square foot. 

 As much as 80 percent of the food service sector’s $10 billion annual energy bill is expended 

on energy that does no useful work and a substantial portion of this waste is related to 

equipment inefficiencies. 

 Training and program resources will help grow the business and reputation for delivering 

quality equipment in the service area. 

 End-users are increasingly concerned about reducing their energy costs and negative impact 

on the environment. 

 Incentives and rebates will make products more affordable to the clients. 

End-users’ desire for energy-efficient equipment will create the market pull that demonstrates to 

the CFS industry that selling efficiency makes business sense. Many end-users lack information 

about the efficiency of their equipment in general, leading them to view new equipment upgrades 

and purchases as an “extravagance” that can be unnecessary to their current kitchen setup. They 

assume that most equipment is installed and serviced relatively equally, and therefore tend to 

shop for the lowest initial price rather than consider the long-term total cost of ownership and 

operation. This misperception can be reinforced in the marketplace by less skilled, less astute 

distributors who sell on the basis of lowest price and convenience rather than high quality. And 

so many consumers do not demand energy-efficient CFS equipment, quality installations or 

properly performed system tune-ups. 

Keeping these issues in mind, key messages for dealers include: 

 In any season, high efficiency CFS equipment can help their customers’ lower usage and 

manage utility costs. 

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 Energy consumption in a typical food service facility is approximately 30 percent for cooking 

and 20 percent for refrigeration – approximately 50 percent of the energy consumed in a 

typical food service facility. The total savings potential from a more efficient commercial 

kitchen can vary from 10-30 percent, depending upon the technologies installed38. 

 When selling new equipment, make sure to provide a quality installation. Make sure the 

representatives can do the right job. 

 Proper maintenance can go a long way in preventing future CFS system problems. 

 Rebates are available to offset upfront costs and customers will save energy each month with 

more efficient products. 

Selecting Marketing Tactics 

A variety of marketing tactics can be used to reach CFS target audiences. Marketing plans 

should include a combination of several of these to create a comprehensive multi-media strategy 

to engage both distributors and end-users. 

The following tactics have the objective of recruiting distributors: 

 Distributor Recruitment Packet (guidance and support documents and materials); 

 Program Resource Kit (guides, reporting forms, training materials, marketing support 

materials, messaging, technical specifications, etc); 

 Marketing Tools (door hangers, rebate forms, van magnets, email template, newsletter 

articles, online banner ad); 

 Program Web Site; 

 Local Distributor/Retailer Trainings and Information Sessions; 

 Direct Marketing (targeted mail; print, online or radio advertising). 

The following tactics have the objective of increasing end-user demand for energy-efficient CFS 

products and services: 

 Direct Marketing (inserts in community newspapers, co-op inserts); 

 Web Site and Online Advertising (Search Engine Optimization, Google Key Words, banner 

ads on relevant Web sites); 

 E-Marketing (program email updates, newsletter and special offers); 

 Retail Promotion or Point of Purchase (signage at retail); 

 Print (trade publication advertising); 

 Trade shows and other community events; 

 Public relations and other earned media. 

 

38 Consortium for Energy Efficiency, Commercial Food Services Fact Sheet, 2007 

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Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Increased sales of new efficient commercial food service products and associated savings; 

 Increased servicing of existing commercial food service products and associated savings; 

 Number of distributors/retailers engaged in the program and the number of their customers 

they serve; 

 Demonstrated increase in consumer awareness of the ENERGY STAR brand; 

 Traffic to program Web site; 

 Retailer and end-user satisfaction (e.g., tracked via surveys, comment cards). 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate homeowners 

about commercial energy users. These materials are available at: 

http://www.energystar.gov/index.cfm?c=partners.pt_index. 

 ENERGY STAR Logos – can be used in a variety of promotional materials for distribution, 

also provides brand recognition to the program. 

 Publications – a library of all ENERGY STAR published materials with information about 

products, safety and saving tips, and other ways to improve efficiency. 

 Training Center – serves as a resource for partners looking to improve their sales effectiveness. Find 

tools and information to help convey to staff, customers, or business partners how ENERGY STAR 

can help them protect the environment while saving energy and money. 

 National Awareness and Marketing Campaigns – provides background on other initiatives 

and branding taking place with ENERGY STAR. 

 Equipment fact sheets, forms and specification sheets – detailed technical data about 

individual equipment. 
5-B-4: Marketing Plan Template: Non-Residential Benchmarking and Performance 

Preliminary Considerations 

To develop an effective marketing plan for Commercial Benchmarking and Performance (CBP), 

program sponsors should first consider the following questions: 

 Who is the target audience for the marketing effort? 

 What are the key motivators for the target audience? 

 What message(s) will the marketing effort deliver to the target audience? 

 What marketing tactics will be most-effective in reaching the target audience with the defined 

messages? 

 How will the results of the marketing effort be measured? 

Defining the Target Audience 

This program is open to commercial customers that meet certain criteria. Such criteria may include: 

 A size minimum (though priority should be given to businesses with facilities that have high 

energy use intensities). 

 The facility must be free of major problems requiring costly repairs or replacements and have 

no planned major system renovations or retrofits. 

 The facility must have accessible and up-to-date building documentation and records. 

Defining the Key Motivations and Messages 

This program works with commercial facility operations staff and owners to benchmark and 

monitor building energy performance using tools such as ENERGY STAR Portfolio Manager 

and building sub-metering equipment, as well as to recommend energy efficiency upgrades 

based on analyses of building performance data. 

CBP involves eight program technical and educational services to achieve savings: 

 Collection of key facility and operational characteristics and contacts. 

 Ongoing collection of interval energy consumption, sub-metering, data logging, and activity 

or output metrics as appropriate to the facility. The extent of metering equipment installed 

depends on the program’s budget; however, all CBP programs can use tools such as 

ENERGY STAR Portfolio Manager to identify under-performing buildings to target for 

energy efficiency improvements, and establish baselines to set goals and measure progress for 

energy efficiency improvement projects over time. 

 Development of building performance metrics. 

 Ongoing calculation and updating of metrics. 

 Communication of metrics to participants. 

 Identification of building system drift (from optimal performance) and alerts (to participants) 

where appropriate. 
 Analysis of facility performance and root cause assessment and communication. 

 Recommendations for energy efficiency upgrades based on analysis and root cause assessment. 

Tools such as ENERGY STAR Portfolio Manager can be used to provide a level of transparency 

and accountability to help demonstrate strategic use of ARRA 2009 funding by generating a 

Statement of Energy Performance (SEP) for each building, and summarizing important 

performance indicators, including energy use intensity and greenhouse gas emissions associated 

with building energy use. 

Key marketing messages for building owners and operations managers as well as contractors 

may include: 

 Although energy savings of CBP programs vary widely (depending largely on facility type, 

size, and baseline efficiency, and whether or not gas savings are verified), generally CBP 

savings tend to be in the range of 1,000-3,000 Mbtu per participant; 

 Many large companies have service contracts to monitor energy usage and performance, and 

many have performance contracts where the contractor shares the savings related to energy 

efficiency improvements, so there is more incentive to save; and 

 Incentives and rebates make efficient equipment and quality installation services affordable 

for business owners and managers. 

Selecting Marketing Tactics 

A variety of marketing tactics can be used to reach CBP target audiences. Marketing plans 

should include a combination of several of these to create a comprehensive multi-media strategy 

to engage the total audience. 

The following tactics can be used to increase corporate operations manager demand for CBP 

services: 

 Direct Marketing (inserts in trade publications, co-op inserts); 

 Web Site and Online Advertising (Search Engine Optimization, Google keywords, banner ads 

on relevant Web sites); 

 E-Marketing (program email updates, newsletter and special offers); 

 Trade shows and other community events; and 

 Public relations and other earned media. 

The following tactics can be used to encourage interested contractors to help promote the CBP 

program: 

 Contractor Recruitment Packet (guidance and support documents and materials); 

 Program Web Site; and 

 Contractor Trainings and Information Sessions on ENERGY STAR Portfolio Manager. 

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Measuring Effectiveness 

Measuring the effectiveness of the marketing plan in reaching the target audience with a message 

that motivates that audience is a key element to the overall program design that should not be 

ignored. Various metrics can be used, including: 

 Demonstrated increase in use of ENERGY STAR Portfolio Manager; 

 Marked increase in number of companies/facilities applying for EPA recognition; 

 Demonstrated increase in consumer and contractor awareness of ENERGY STAR; 

 Visitor traffic to program Web site; and 

 Customer satisfaction among users of Portfolio Manager (e.g., tracked via surveys, comment cards). 

Based on the results of the evaluation, changes should be made to the marketing plan and future 

marketing efforts to improve effectiveness. 

Available Resources 

EPA and DOE provide a variety of materials to help program sponsors educate the commercial 

audience about Commercial Benchmarking and Performance. These materials are available at: 

http://www.energystar.gov/index.cfm?c=partners.pt_index. 

 ENERGY STAR Portfolio Manager: www.energystar.gov/benchmark 

 ENERGY STAR Guidelines for Energy Management: www.energystar.gov/guidelines

 ENERGY STAR Building Upgrade Manual: www.energystar.gov/bldgmanual

 Federal Tax Credits for Energy Efficiency: www.energystar.gov/taxcredits 

 Building Operator Certification: www.theboc.info

 BOMA Building Energy Efficiency Program: www.BOMA.org/BEEP 
5-C: Illustrative Request for Proposal 

5-C-1: Non-Residential Prescriptive Program 

Note: The final RFP should be reviewed by the organization’s contracts official or attorney. 

Purpose of RFP 

The purpose of this RFP is to select a third-party vendor that will offer the program administrator a range of high 

quality and effective services relating specifically to the development and implementation of a non-residential 

Prescriptive energy efficiency program funded by the American Recovery and Reinvestment Act of 2009. Desired 

services include the following: 

 Program design finalization; 

 Marketing strategy design and materials execution and delivery; 

 Participant recruiting, training and support; 

 Trade ally recruiting, training and account management; 

 Participant technical services; 

 Incentive application validation and processing; 

 QA/QC; 

 Tracking database design and set up; and 

 Program management, administration, and support. 

The initial contract for the selected Bidder will extend for a term of [two] years. After the initial [two-year] term, the 

contract may be renewed annually, at [Program Administrator’s] option, through [date]. 

About the Program Administrator 

[Organization description and Web site]

Contact Information 

The following individual will represent the Program Administrator as the primary contact for matters relating to the non-technical 

aspects of this RFP and during the contract negotiation/award process and subsequent invoicing. 

[Name] 

[Contact Info] 

The following individual will represent the Program Administrator as the primary contact for matters relating to technical 

aspects of the RFP and throughout the performance of the work upon the awarding of the contract. 

[Name] 

[Contact Info] 
Scope of Work 

Task [1]: Program Design Finalization 

Develop a final Non-residential Prescriptive Program Implementation Plan that will describe the strategy for delivering 

the program, including: 

 Finalizing contractor recruiting and training plan; 

 Developing final list of prescriptive measures and incentive levels; 

 Program processes; 

 Administrative protocols; 

 QA/QC protocols; 

 Administrative tools and procedures; and 

 Program applications and materials.

Task [2]: Marketing Strategy and Execution 

Conduct market research and design marketing plan as appropriate, including: 

 Marketing objectives; 

 Target audiences; 

 Key messages; 

 Specific program strategies and tactics; 

 Creative design “look and feel”; 

 A program Web site; 

 A marketing evaluation plan; and 

 Development and delivery of marketing collateral/materials. 

Task [3]: Participant Recruitment, Training and Support 

Conduct activities as appropriate to retain participants, including: 

 Outreach to eligible populations through trade associates and community based organizations; 

 Participation in trade shows; and 

 Online outreach. 

Task [4]: Trade Ally Recruiting, Training and Account Management 

The key to delivering the Non-residential Prescriptive Program will be the participation and engagement of Trade 

Allies, who will deliver the products and services to customers. Develop relations with Trade Allies through a variety 

of methods, including, but not limited to: 

 Outreach to local chapters of key industry associations; 

 Engaging local distributors and manufacturer representatives; and 

 Online outreach. 

Task [5]: Technical Services 

Provide Trade Allies with the tools that will help them support customers throughout the participation process, 

including, but not limited to: 

 Leveraging ENERGY STAR Portfolio Manager to benchmark customer facilities and identify savings opportunities; 

 Supporting on-site equipment evaluation and related technical assistance provided by qualified Trade Allies; and 

 Providing annual, as well as ongoing training. 

Task [6]: Incentive Application Validation and Processing 

Assist the Program Administrator in developing program administrative tools and procedures for program tracking 

and reporting, rebate processing and invoicing, and support of Evaluation, Measurement, and Verification (EM&V). 

156
Task [7]: QA/QC 

QA/QC activities are central to the success of the Program, as they will be used to estimate program savings impacts, 

monitor program performance, ensure that incentives paid are proportional to savings achieved (i.e., prevention of 

overpayment), and provide feedback for on-going program improvements. These activities will serve as a means to 

audit, both internally and independently, the actual level of savings being delivered, and to maximize savings achieved 

for the given program budget. Furthermore, these collected data will feed into any formal EM&V process that the 

Program Administrator decides to undertake at a later date. Please clearly describe the processes for program QA/QC. 

Task [8]: Tracking Database Design and Set Up 

A robust information and data management system is essential to the performance of the Program Administrator’s 

programs. Please describe the features and functions of a tracking database for the Non-residential Prescriptive Program. 

Task [9]: Program management, administration and support 

Please describe the specific components of the program management approach. 

Evaluation Criteria 

 The Bidder’s experience with providing the proposed program portfolio at the scale and on the timeframe requested 

in other engagements. 

 The capacity of the Bidder, as judged by program administrator, to successfully devise and deliver the proposed 

programs on the aggressive scheduled required. The judgment will be based on such factors as the Bidder’s 

commitment, experience of personnel to be assigned to the project, facilities, and evidence of past experience in 

implementing such programs. 

 The Bidder’s ability to modify and/or expand the program when required, and to provide a continuing high level of 

performance for the duration of the contract. 

 The Bidder’s ability to provide independent, third party verification of program results, as well as tracking and 

reporting with transparency as required by ARRA funding guidance. 

 The Bidder’s ability to demonstrate to the program administrator that the requirements and implications of the 

proposed work effort are clearly defined and understood. 

 The Bidder’s commitment to and evidence of a diversified work force at all levels of the organization, and a 

diversified supplier strategy. 

 Quality and cost of Bidder’s proposed Project Evaluation plan. 

 Project Cost. 

Selection and Award Process 

Distribution of RFP: [date] 

Proposals due to Program Administrator: [date/time] 

Decision on Program Vendor [date] 

Negotiate and Execute Contract [date] 

Launch programs [date] 

**Please submit [six (6)] copies of the proposal. Proposals must be clearly labeled and submitted to: 

[Program Administrator Contact Name and Address]** 

Bidders whose proposals have not been selected will be notified via telephone, email and/or written letter at the 

number or address provided in their proposal. An official statement to the same effect will be sent through the U.S. 

Postal Service following the award of the contract to the successful Vendor, if any. 

Appendices 

 STANDARD TERMS AND CONDITIONS 

 SIGNATURE PAGE 

 BIDDER ACKNOWLEDGEMENT (of receipt of the RFP) 

 BIDDER CONDUCT (expectations regarding bidder’s professional conduct) 

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Appendix A: Overview of Stimulus Package 

Most of the ARRA funds flow through existing programs, including: the State Energy Program 

(SEP); the Weatherization Assistance Program (WAP); as well as the new Energy Efficiency and 

Conservation Block Grant Program. However, the DOE’s Office of Electricity Delivery and 

Energy Reliability is programming $4.5 billion in “smart grid” funding, including $100 million 

in training funds, and the U.S. Department of Labor’s Employment and Training Administration 

is also spending $500 million for training and workforce development. These programs are 

summarized in Table A1. 

This appendix describes each program in greater detail, with an emphasis on those funding 

streams most relevant to the energy efficiency opportunities discussed in the Toolkit (Energy 

Efficient Community Block Grants, SEP, and ENERGY STAR® Appliance Rebate Program). 

Additional information can be found by visiting www.energy.gov/recovery. 

Table A1: Summary of ARRA Funding 

Provision (Agency) Dollar Amount 

Energy Efficiency and 

Conservation Block Grants (DOEEERE-OWIP) 

www.eecbg.energy.gov 

$3.2 Billion 

State Energy Program (DOEEERE-OWIP) $3.1 Billion 

ENERGY STAR® Appliance 

Rebate Program (DOE-EEREOWIP) 

$300 Million 

Weatherization Assistance 

Program (DOE-EERE-OWIP) 

$5 Billion 

Smart Grid (DOE-OE) $4.5 Billion 

Grants for Energy EfficiencyRenewable Energy Workforce 

Development (Labor) 

http://www.dol.gov/recovery/

$500 Million 

Energy Efficiency and Conservation Block Grants (EECBG) 

The formal Funding Opportunity Announcement (FOA) was issued by DOE on March 26, 2009 

for Energy Efficiency and Conservation Block Grants (EECBG); $2.8 billion in formula grants 

were made available to U.S. states, territories, local governments and Indian tribes. Applications 

for EECBG were due May 12, 2009. To obtain a copy of the FOA, which contains complete 

information for grantees on the program, go to 

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www.eecbg.energy.gov/downloads/EECBG_FOA_Instruction_For_Downloading.pdf. The FOA 

contains guidance on eligible uses of funds, metrics, and reporting requirements. Further 

EECBG information, tools, and resources can be found at http://www.eecbg.energy.gov/. 

Note: While the application deadline is past, many EECBG grantees are still developing 

their strategies and can use RDEE resources and key program details to guide development 

and implementation of those strategies. 

The subsections below summarize the purpose and eligible activities for EECBG grants from the 

DOE FOA. 

Purpose 

The purpose of the EECBG Program is to assist local governments to: 

 Reduce fossil fuel emissions in a manner that is environmentally sustainable and 

maximizes benefits for local and regional communities; 

 Reduce the total energy use of the eligible entities; and 

 Improve energy efficiency in the building sector, the transportation sector, and other 

appropriate sectors. 

Entities may develop initiatives and projects that address one or more of these purposes, and 

each activity is not required to meet all of the stated purposes. DOE encourages entities to 

develop many different new and innovative approaches. However, each entity is required to use 

the funds cost-effectively and in a manner that yields longer-term energy and emission reduction 

benefits. 

Program Principles 

DOE defined the following core principles for the program and project planning process: 

 Prioritize energy efficiency and conservation as the cheapest, cleanest, and fastest ways 

to meet energy needs. 

 Maximize benefits over the longest possible terms, by linking energy efficiency efforts to 

long-term priorities (especially community economic development, community 

stabilization and poverty reduction). 

 Invest funds in programs and projects that create and/or retain substantial and measurable 

numbers jobs, energy savings, and economic benefits. 

 Leverage federal funds with other resources, including other ARRA programs targeting 

community development such as the Community Development Block Grant program, 

HOME, and job training programs. 

 Develop programs and strategies that will continue beyond the funding period. 

 Ensure oversight, transparency, and accountability for all program activities. 

 Develop comprehensive plans that benchmark current performance and set aggressive 

goals. 

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Eligible Activities 

The activities listed below are not an exhaustive list; each entity is encouraged to develop a 

strategy to yield the maximum energy efficiency improvements, energy use reductions, fossilfuel emission reductions, and economic benefits with available funds. 

1. Development of an Energy Efficiency and Conservation Strategy: Develop and/or 

implement a strategy for energy efficiency and conservation and carry out activities to 

achieve the purposes of the program. Entities receiving direct formula grants are required 

to submit a proposed strategy for DOE approval. 

2. Technical Consultant Services: Retain technical consultant services to assist in the 

development of an energy efficiency and conservation strategy, including: formulation of 

goals; development of activities to achieve those goals; development of methods to 

measure progress toward goals; developing annual reports on strategies, goals, and 

achievements to the population served by the eligible entity. 

3. Residential and Commercial Building Energy Audits: Support the conduct of 

residential and commercial building energy audits. 

4. Financial Incentive Programs: Establish financial incentive programs and financing 

mechanisms for energy efficiency improvements, such as energy saving performance 

contracting, on-bill financing, and revolving loan funds. 

5. Energy Efficiency Retrofits: Grants to nonprofit organizations and governmental 

agencies for the purpose of retrofitting existing facilities to improve energy efficiency. 

6. Energy Efficiency and Conservation Programs for Buildings and Facilities: 

Develop and implement energy efficiency and conservation programs for privatelyowned buildings and facilities within the jurisdiction. 

7. Development and Implementation of Transportation Programs: Develop and 

implement programs to conserve energy used in transportation, including but not limited 

to: employee flex time programs; promoting use of satellite work centers; development of 

zoning guidelines or requirements that promote energy efficient development; 

infrastructure such as bike lanes and pathways and pedestrian walkways; synchronization 

of traffic signals; state/local/regional integrated planning activities that reduce 

greenhouse gas emissions and vehicle miles traveled; incentive programs to reduce 

commutes by single occupancy vehicles; transportation system efficiency improvements 

such as intelligent transportation system (ITS) strategies; idle-reduction technologies 

and/or facilities to reduce energy use and emissions from freight movement; and 

installation of solar panels on interstate rights-of-way to conserve energy in highway 

operations and maintenance activities. 

8. Building Codes and Inspections: Develop and implement building codes and 

inspection services to promote building energy efficiency. 

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9. Energy Distribution: Distributed energy resource technologies that significantly 

increase energy efficiency, including: district heating and cooling systems; combined 

heat and power/cogeneration systems; energy storage systems; thermally-activated 

cooling systems; micro turbines; and ground source heat pumps. 

10. Material Conservation Programs: Activities to increase participation and 

efficiency rates for material conservation programs, including source reduction, 

recycling, and recycled content procurement programs that lead to increases in energy 

efficiency. 

11. Reduction and Capture of Methane and Greenhouse Gases: Purchase and 

implement technologies to reduce, capture, and use methane and other greenhouse gases 

generated by landfills or similar waste-related sources, such as wastewater treatment 

plants, operations producing food waste, dairy farms, and other animal operations. 

12. Traffic Signals and Street Lighting: Replace traffic signals and street lighting with 

energy efficient lighting technologies, including light emitting diodes; and any other 

technology of equal or greater energy efficiency. 

13. Renewable Energy Technologies on Government Buildings: Develop, implement, 

and install on or in any eligible government building onsite renewable energy technology 

that generates electricity from renewable resources, including solar energy; wind energy; 

fuel cells; and biomass. 

14. Any Other Appropriate Activity: Submit any other appropriate activity for 

approval in the Energy Efficiency and Conservation Strategy. 

State Energy Program (SEP) 

State energy offices are receiving supplemental grants under the terms of ARRA. These entities 

have received SEP funds for many years under existing law and program rules. DOE issued a 

FOA for SEP grants, downloadable from 

http://apps1.eere.energy.gov/wip/pdfs/sep_arra_foa.pdf. 

Note: Applications were due May 12, 2009 and most states have now received at least 

conditional grant awards under the program, though SEP grant recipients still must fulfill 

several conditions in order to ensure continued ARRA funding. These conditions include: 

1. Governors must submit assurances that: 

A. The applicable State regulatory authority will seek to implement, in appropriate 

proceedings for each electric and gas utility, under its rate-making authority a general 

policy that ensures that utility financial incentives are aligned with helping their 

customers use energy more efficiently and that provide timely cost recovery and a 

timely earnings opportunity for utilities associated with cost-effective measurable and 

verifiable efficiency savings, in a way that sustains or enhances utility customers’ 

incentives to use energy more efficiently. 

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B. The State, or the applicable units of local government that have authority to adopt 

building codes, will implement the following: 

i. A residential building energy code (or codes) that meet or exceed the most 

recent International Energy Conservation Code, or achieve equivalent or 

greater energy savings. 

ii. A commercial building energy code (or codes) throughout the State that meets 

or exceeds the ANSI/ASHRAE/IESNA Standard 90.1–2007, or achieves 

equivalent or greater energy savings. 

iii. A plan to achieve 90 percent compliance with the above energy codes within 

eight years. This plan will include active training and enforcement programs 

and annual measurement of the rate of compliance. 

2. States are guided to prioritize grants toward funding energy efficiency and renewable 

energy programs, including: 

A. Expansion of existing energy efficiency programs run by state agencies or utilities; 

B. Expansion of existing state or utility renewable programs; 

C. Cooperation and joint activities between States to advance more efficient and 

effective use of ARRA funding. 

3. States have substantial flexibility in program funds, notwithstanding the guidance to build 

on existing programs. In addition, the FOA encourages priority focus on the following 

kinds of activities: 

A. Establishment and enforcement of energy efficient building codes and standards, and 

implementation of voluntary programs that impact new design. 

B. Loans, grants, and incentives for energy efficiency and renewable energy measures. 

C. Building retrofits. 

D. Traffic signal synchronization and replacement with LEDs. 

E. Industrial retrofits. 

5. DOE encourages states to go beyond typical utility metrics of cost-effectiveness in 

selecting measures and programs to fund, and DOE promises further guidance in this 

area. The FOA also, however, suggests that SEP-funded activities produce (as a 

portfolio) at least 10 million Btu (source energy) in annual energy savings per $1,000 

spent. 

Most states have energy plans under their current SEP program umbrellas. ARRA funded 

initiatives should be consistent with these plans’ goals. To the extent the state energy office 

programs funds through existing programs, consultation may be needed with the relevant 

agencies or regulatory authorities, to ensure consistency with these institutions’ policies and 

practices. 

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ENERGY STAR® Appliance Rebates 

ARRA provides $300 million for a program authorized in the Energy Policy Act of 2005 (EPAct 

2005). The authorizing language calls for states to receive funds on a formula basis, and use 

them to provide rebates or other incentives for ENERGY STAR qualified residential products. 

DOE’s Funding Opportunity Announcement was issued in July 2009, with preliminary 

applications due August 15 and final applications due October 15. The FOA includes 

recommendations for eligible products and other details. The FOA encourages states to program 

these funds through existing programs. For more information visit: 

http://apps1.eere.energy.gov/news/daily.cfm/hp_news_id=178. 

Weatherization Assistance Program (WAP) 

Note: Applications for WAP funding were due May 12, 2009. 

The DOE FOA pertaining to the Weatherization Assistance Program (WAP) is downloadable 

from http://ase.org/uploaded_files/5461/doe_wap_guidelines.doc. 

Key elements of this guidance include: 

1. WAP grantees are defined by longstanding law and program rules as designated state 

agencies. WAP sub-grantees are also defined in the program, and serve as the primary 

delivery agents for program services. These definitions and associated rules have not 

changed, except that matching fund requirements have been waived for ARRA funds. The 

FOA does acknowledge that a state may add new sub-grantees, as long as they are 

Community Action Agencies, public agencies, or nonprofit groups that meet program rules. 

2. The WAP allocation formula was modified slightly to ensure a more even distribution of 

funds, such that warmer states will receive somewhat higher amounts than under the previous 

formula. 

3. Three significant WAP rule changes were included in ARRA: (1) eligibility threshold income 

was raised from 150% to 200% of the poverty level; (2) training and technical assistance 

funds can account for 20% of total funds, up from 10%; and (3) average per-home spending 

limits were raised from $2,500 to $6,500. 

More information on the Weatherization Assistance Program is available at 

http://apps1.eere.energy.gov/weatherization/recovery_act.cfm. 

Smart Grid 

DOE is distributing the $4.5 billion in ARRA funds in this category primarily through 

competitive grants. Grants up to $200 million are available. Applications were due August 6, 

2009. These funds will go towards advanced utility metering, demand-response technologies, 

advanced transmission, distribution, and control technologies, planning and analysis efforts, and 

other purposes. More information can be found at 

http://www.oe.energy.gov/information_center/american_recovery_reinvestment_act.htm. 

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Green Jobs 

Department of Labor’s Employment and Training Administration is programming approximately 

$400 million for “green jobs” training and workforce development. There are three main 

opportunities available. For more information: http://www.doleta.gov/grants/find_grants.cfm. 

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Appendix B: Estimating the Employment Effects of Energy 

Efficiency Programs 

Methodology 

Investment in energy efficiency programs results in direct, indirect, and induced employment 

increases in energy efficiency and related fields during the program life and thereafter. 

Examples of direct jobs include program staff and contractors required for measure installation. 

Indirect jobs include manufacturing and service positions that supply technologies rebated and 

installed by programs, and induced jobs result when the utility bill savings that accrue to 

participants are either saved or spent. 

Forecasts of employment effects vary widely based on program designs and employment model 

framework and input assumptions. As a result, it is prudent to consider a range of potential job 

impacts for planning purposes. The methodology used herein centers on four studies. The first 

study developed conservative estimates for total (direct, plus indirect, and induced) job impacts 

(ACEEE, 2008)39 of approximately 5 jobs per million dollars in energy efficiency spending. The 

second study developed moderate estimates for direct and indirect job impacts (Bezdek, 2007)40

of approximately 8 jobs per million. A third study developed larger impacts of around 20 jobs 

per million, which includes induced job effects in addition to direct and indirect effects (PERI, 

2008)41. A fourth study, published by the International Monetary Fund (IMF) in 200242, is a 

meta-study of 16 empirical macroeconomic models that each estimated induced economic effects 

of various Federal monetary policies. The output of these types of models are economic 

multipliers that capture induced dollars “created” in the economy for every dollar of Federal 

expenditure. These multipliers were used to calculate a range of induced job estimates resulting 

from energy efficiency funding, based on the direct and indirect job estimates published by 

Bezdek and PERI.43 

Using this methodology, the range of job creation estimates shown in Column G below was 

developed. The actual, published ACEEE, Bezdek and PERI estimates are on rows 1, 2 and 5, 

respectively. The remaining estimates use the non-induced Bezdek and PERI job numbers 

(Column D), times a multiplier (Column E) to estimate induced jobs (Column F); the total jobs 

estimate is then the sum of Column D and Column F. 

 

39 Ehrhardt-Martinez, Karen, and Laitner, John A., “The Size of the U.S. Energy Efficiency Market: Generating a 

More Complete Picture,” American Council for an Energy-Efficiency Economy, Report #E083, May 2008. 40 Bezdek, Roger, “Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century,” Management 

Information Services, Inc., for American Solar Energy Society, 2007. 41 Pollin, Robert et al., “Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon 

Economy,” Department of Economic and Political Economy Research Institute, University of MassachusettsAmherst (Prepared under commission with the Center for American Progress), September 2008. 42 Hemming, Richard et al., “The Effectiveness of Fiscal Policy in Stimulating Economic Activity-A Review of the 

Literature,” International Monetary Fund, WP/02/08, December 2002. 

43 The authors of the PERI report consulted the IMF meta-study and opted to use a multiplier of 0.3, which they 

considered relatively conservative. 

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Table B1: Employment effect estimates 

A B C DEF

Estimate Direct

Jobs/$M

Indirect +

Induced

Jobs/$M

B + C

IMF

Induced

Effects

Multipler

Induced

Jobs/$M Total Jobs/$M

1 ACEEE 3.8 1.6 5.4 NA NA 5.4

Indirect

Jobs

G

/$M

2 Bezdak (published) 3.8 4.9 8.6 NA NA 8.6

3 Bezdak + Induced 3.8 4.9 8.6 0.3 2.6 11.2

4 PERI, low 9.4 5.9 15.2 0.1 1.5 16.7

5 PERI, mid (published) 9.4 5.9 15.2 0.3 5.0 20.2

6 PERI, high 9.4 5.9 15.2 0.6 9.1 24.3

A value of 0.1 was used as the “low” multiplier because this was the lowest published value in 

the IMF meta-study. A value of 0.6 was used as the “high” multiplier (the 25th percentile 

amongst all the values published in the meta-study; that is, 75% of the multiplier estimates were 

higher than 0.6) to be conservative and not overestimate the employment effects of SEP dollars. 

By way of reference, the median and average multiplier values were both 0.9 and the highest 

value was 2.0.

Application to Programs 

The programs in this guide vary considerably in size (budget), scalability, target market, and 

delivery mechanism. As a result, the number of jobs created by each program will also vary 

considerably. Some programs require people with advanced engineering or building science 

backgrounds (Custom, Persistence Commissioning), while others require people with trade skills 

to whom the program will provide additional training (HPwES). Below, we illustrate how 

different job estimates were developed for two programs in the portfolio. 

 HPwES. Given the relative fragmentation of the home contracting industry and the 

comparatively small size of each job, Home Performance with ENERGY STAR® is a 

training and labor intensive program. It therefore results in a comparatively large number of 

jobs created, on average between the “PERI, low” and “PERI, high,” we estimate 

approximately 25 jobs/$M in the first year, trailing to 18 jobs/$M by the end of the third 

year. 

 Retrocommissioning. An RCx program requires expertise in building commissioning; these 

jobs require a higher skill level and pay than is required for some programs. They therefore 

result in a comparatively low number of jobs created; on average between “ACEEE” and the 

“PERI, low” estimate, or about 15 jobs/$M in the first year, trailing to about 5 jobs/$M by 

the end of third year. 

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167

Because of the considerable uncertainty around any job creation estimate, we used the values in 

the table above as guideposts, not rules, for estimating the employment effects of each program 

as illustrated in the table below. 

Table B2: Recommend ranges of employment effects 

Average job type required by

program

Example Low High

Skilled trade HVAC contractor or Home Performance contractor 8.6 24.3

Advanced technical or managerial Commissioning provider or On‐site Energy Manager 5.4 16.7

Jobs/$M Estimate

Finally, the table below shows the range of job impacts developed for each program in the 

program snapshots. 

Table B3: Employment effect assumptions, RDEE Program Snapshots 

Program Jobs/$M,

Low

Jobs/$M,

High

R1 ENERGY STAR Products 8 10

R2 Easy Audit and Direct Install 18 25

R3 HPwES 18 25

R4 Efficient AC 11 20

NR1 Prescriptive 8 11

NR2 Retrocommissioning 11 15

NR3 Commerical Food Service 6 8

NR4 Custom 15 18

NR5 Benchmarking and Performance 11 15

NR6 On‐Site Energy Manager 5 11