Residential Code Compliance Program. WHPA Overview
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1 Residential Code Compliance Program WHPA Overview 1
2 Agenda Background & Objective Eligibility Data Collection/ Application Marketing Formalities Timing 2
3 Background & Objective 3
4 Program Design Background Direction to encourage code compliance incentive program The California Public Utilities Commission required the IOUs to propose a mechanism to increase permit compliance with focus on the hotter climate zones. The program offers incentives to HVAC distributors and retailers, to begin the permit process through the HERS registries. And also offers incentives to customers who final their permits with the local jurisdictions Stakeholder engagement process The WHPA held meetings that coalesced industry, utility, and regulatory input to inform IOU plans The program was proposed, considered and approved through the State s open regulatory process, which allowed for public comment and feedback Stakeholder engagement continues today with feedback throughout the design process to finalize implementation details 4
5 Program Design Incentive mechanism The distributor incentive is intended to help start the code compliance process in relation to the sale of a residential HVAC system or component and also to increase margins for distributors and contractors for sales that promote/include code compliance The customer incentive is designed to generate customer interest in the permit process. The intent is that they will then ask questions and get input from contractors thus motivating contractors to better explain the value of code compliance in their discussions with customers The two types of incentives should motivate certain actions that are important to the beginning and end of the compliance process It is intentional that incentives only cover some of the costs of compliance since there is inherent value in permitting, and contractors likely wouldn t be motivated to help customers understand the value if it were free 5
6 Objective Determine the effectiveness of an upstream/downstream incentive model in increasing permit compliance in the residential market. Indicators of effectiveness 1. % increase of final permits 2. Increased number of units entered into HERS registries 3. Improvement in permit compliance with code 4. Cost effective energy savings achieved 6
7 Eligibility 7
8 Participating Jurisdictions PG&E Fresno Area City of Fresno City of Clovis City of Madera Fresno County SCE/SoCalGas Coachella Valley SDG&E Zone 10, starting with the city of Chula Vista 8
9 Installation Site Eligibility Customers Single family and multi-family (mobile homes are not eligible) Either electric or gas customers (depending on equipment fuel type) Propane is not eligible Program start date Distributors may submit CEC numbers created after TBD Customers may apply for incentives for any permit still open on TBD Retrofit only Regulatory guidance and development process focused on retrofit market New Construction is not eligible. Must be a PG&E customer and in participating jurisdictions Check CEC Electric Utilities Map Distributors should watch for cities within targeted zip codes that do not participate 9
10 Data Collection & Application 10
11 Program Data Collection Distributor Application Data CF-1R ALT CEC Registration Number (HERS ID) Installation Site Type: Single/Multi Equipment Make and Model Distributor Historical Data Total annual counts of condensers and furnaces, package vs. split (Annual data) Customer Application Data MCH-20 CEC Registration Number MCH-25 CEC Registration Number Permit Number Building Department Data Permit number Address, City, Zip code Open and close (when applicable) dates Applicable description fields HERS Registries CEC Registration Number CF-1R data fields CF-3R (MCH 20 and 25) data fields 11
12 HERS Registry Vendor Rebate System (VRS) Distributor Contractor Incentive Application- Distributor Distributor Incentive Contractor registers project with HERS Contractor provides CEC # and site address to distributor No Contractor purchases equipment from Distributor Distributor submits project data to VRS Application rejected Distributor receives incentive No VRS validates project data Site address valid in VRS/PG&E system? Yes Both criteria valid? Yes No HERS generates CEC Registration # CEC # valid in HERS Registry? Yes 12
13 Building Departments HERS Registry Parago Customer Contractor Incentive Application- Customer Customer Incentive Contractor obtains final permit for customer Contractor completes rebate application Contractor Customer system installed to code Who finals permit with building department? Customer Customer obtains final permit Customer completes rebate application Rebate application is mailed to Parago Customer incentive paid Parago validates application data PG&E account is validated through Parago/PG&E system CEC # is validated through HERS 13 Permit number is validated through bldg. dept.
14 Marketing 14
15 Marketing Material Counter POP sign Distributor Building Department Customer / Contractor Promotional material highlighting benefits Rebate application distributed with permit Direct mail 15
16 Timing 16
17 Timeline to Launch IOU Energy savings claims Q Q Q Workpaper finalization, CPUC approval Data/design Data/design feedback IT application design Partner Outreach Terms/ Agreements Participation Agreement finalization Program design education Deliver & sign by program participants Marketing Collateral design Collateral execution Launch Launch! 17
18 Thank You 18
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