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CenterPoint Energy High Effciency Homes Program 2018 Program Manual CenterPoint Energy High Effciency Homes Program ®

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Page 1: 2018 Program Manual - CenterPoint Energy · 2018-03-13 · CenterPoint Energy between September 1, 2017 and November 30, 2018 (as determined by the CenterPoint Energy permanent meter

CenterPoint EnergyHigh Efficiency Homes Program

2018 Program ManualCenterPoint EnergyHigh Efficiency Homes Program®

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Welcome Welcome to the 2018 CenterPoint Energy High Efficiency Homes Program®. As a High Efficiency homebuilder, you are part of an elite group that is setting the standard for energy-efficient construction in Texas. This booklet is designed to provide you with the information you will need throughout your participation in the CenterPoint Energy High Efficiency Homes Program. Should you run into any problems or have additional questions, we are here to help you. CenterPoint Energy has contracted with Lockheed Martin Energy (LM Energy) to implement the High Efficiency Homes Program for 2018. Lockheed Martin Energy is nationally recognized for successful program design and implementation of utility distributed energy solutions including a wide array of residential energy efficiency programs. LM Energy’s dedicated program team will work closely with CenterPoint Energy Program staff to support builders, raters and other market actors achieve success in the CenterPoint Energy High Efficiency Homes Program®. Thank you for your participation. We all look forward to working with you to advance home construction and promote energy efficiency in Texas.

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Contents Program Overview ........................................................................................................................................ 4 Program Benefits ...................................................................................................................................... 4 2018 Financial Incentives .............................................................................................................................. 6 Tier-Specific Requirements and Instructions ............................................................................................ 6 Additional Program Details ................................................................................................................... 7 Program Responsibilities............................................................................................................................... 8 Performance Milestone Date Requirements ............................................................................................ 8 Homebuilder Participation Requirements ................................................................................................ 8 HERS Rater Participation Requirements ................................................................................................... 9 HVAC Contractor Participation Requirements ........................................................................................ 10 Reporting Requirements, Required Data .................................................................................................... 11 Homebuilders .......................................................................................................................................... 11 HERS Raters ............................................................................................................................................. 11 HVAC Contractors ................................................................................................................................... 12 Quality Assurance/Quality Control ............................................................................................................. 13 Corrective Action Procedure ................................................................................................................... 13 Program Implementation ........................................................................................................................... 14 Training ................................................................................................................................................... 14 Program Outreach and Advertising ........................................................................................................ 14 ENERGY STAR® Certification Requirements ........................................................................................ 14 Appendices .................................................................................................................................................. 16 A. CenterPoint Service Territory ............................................................................................................. 16 B. Mechanical Ventilation Guidance ....................................................................................................... 17

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Program Contact Information Drew Scatizzi, Program Manager CenterPoint Energy Email: [email protected] Office: (713) 207-5618 Cell: (832) 993-2647 Stephen Gilley, Program Manager Lockheed Martin Energy Email: [email protected] Office: 252.459-6476 Cell: 252-813-5262 Tim McConkie, Technical Lead Lockheed Martin Energy Email: [email protected] Office: x Cell: x Deborah Hill, Operations Manager Lockheed Martin Energy Email: [email protected] Office: 252.459.6654

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Program Overview The CenterPoint Energy High Efficiency Homes Program® (the Program) promotes the construction and certification of new ENERGY STAR® certified and high efficiency qualified homes. This voluntary market transformation program provides financial incentives, technical and sales assistance to production and custom homebuilders who commit to construct homes within the CenterPoint Energy service territory that meet high efficiency specifications. The goal of the Program is to create a sustainable market that leads to: • A continuous supply of High Efficiency and ENERGY STAR® certified homes; • Increased consumer demand and perceived value of high efficiency and ENERGY STAR® certified homes; and • Increased improvements in home energy performance. To achieve this goal, the Program is committed to increasing consumer awareness of high efficiency and ENERGY STAR® certified homes and the homebuilders who construct them. CenterPoint Energy is also committed to working in partnership with key market actors who can contribute to the creation of a sustainable market of energy-efficient homes. Program Benefits Today’s homebuyers are increasingly concerned about rising energy costs. Although any homebuilder can claim to build an energy-efficient home, the CenterPoint Energy High Efficiency Homes Program® provides builders with significant third-party credibility. As a participant in the CenterPoint Energy High Efficiency Homes Program®, certain benefits and services are available to you. Eligibility Requirements Homes must meet several eligibility requirements to qualify for incentives in the CenterPoint High Efficiency Homes Program®: 1. A home must be served by CenterPoint Energy in a CenterPoint Energy service territory1 as evidenced by town, zip code and permanent ESI ID number associated with the home*; 2. A home’s construction must be completed and a permanent meter requested from CenterPoint Energy between September 1, 2017 and November 30, 2018 (as determined by the CenterPoint Energy permanent meter set date); 3. The ENERGY STAR and/or final HERS certification date for the home must be performed and dated between December 1, 2017 and November 30, 2018; and 4. The home must satisfy all program requirements. CenterPoint Energy will pay incentives once all the above conditions are met, the required data is submitted through the online system, and proper documentation is delivered to the Program. 1 See CenterPoint service area in Appendix A

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*Homebuilders are responsible for verifying their electric service provider prior to submitting documentation to request incentives. A permanent ESI ID number must be submitted for each home. See more http://www.centerpointenergy.com/en-us/Corp/Pages/communities-we-serve-HO.aspx Note: If a project falls outside of program guidelines, a formal request outlining the reason for the exemption must be submitted and approved by the Energy Efficiency and Business Development Director.

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2018 Financial Incentives CenterPoint Energy will offer incentives to reward homebuilders who deliver homes that meet minimum qualification criteria. The number of incentives awarded to each homebuilder is determined through a competitive bid and scoring process. The incentive structure is designed to measure kWh savings achieved above the 2015 International Energy Conservation Code (IECC). To be eligible for participation, a home must achieve at least a ten percent (10%) savings over the 2015 IECC reference baseline home. Incentives are then paid based on the incentive tier structure detailed below. The 2018 incentive tier structure includes both prescriptive and performance incentive levels. Incentive Requirements Incentive Amount Base Performance Tier 10% kWh savings over baseline $150 Prescriptive Incentive Tiers Attic Wall SEER Tier 1 R38 R13-R15 16 $200 Tier 2 R38 R15+ or R13+3 >16 $500 High Performance Tier 30% kWh savings over baseline $700 Bonus Incentive ENERGY STAR 3.1 Certified $50 Note: High Performance Tier will still need to achieve Tier 2 minimum measures Only the ENERGY STAR v3.1 Bonus Incentive is cumulative, otherwise only the incentive achieved with the highest dollar amount will be awarded. Tier-Specific Requirements and Instructions 1. Nominal Cooling (SEER) efficiency: Rater must confirm SEER with either a matched condenser-coil (RCU-A-C), or a matched condenser-coil-blower (RCU-A-CB) type AHRI certificate, or equivalent. Corresponding REM/Rate energy model must match the AHRI SEER value. The average of all systems installed will be used to evaluate if this prescriptive requirement is met. 2. Rated Wall R-Value: Nominal cavity insulation R-value and nominal R-value of rigid insulation, or equivalent. 3. Rated Attic R-Value: R-38 requirement applicable to flat-attic assemblies only. a. HVAC platforms will be treated as ceilings without attic spaces and the combination of platforms plus vaulted ceilings will allow up to 500 ft2 or 20%, whichever is less, of the total insulated ceiling area to be R-30 if the HVAC platform/vaulted ceiling does not allow for R-38 insulation. b. R-21 foam insulation applied at the roofline and heating, cooling, and duct systems located within the conditioned envelope will be considered equivalent.

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Additional Program Details Incentive Payments are subject to the submission of required documentation, cooperation with random QA/QC (Quality Assurance/Quality Control) verification inspections, and a completed database entry for review by CenterPoint Energy and LM Energy. Required documentation includes: • Completed database entries for each home/unit address; • Uploaded address-specific REM/Rate file; • Uploaded Fuel Summary Report generated using the 2015 IECC as the baseline reference home; • All homes must meet the minimum energy code applicable to where it is constructed in addition to the Program requirements; • All homes must achieve a minimum energy savings of ten percent (10%) kWh savings over the 2015 IECC baseline reference home; • All homes must perform both Blower Door Infiltration testing as well as Total Duct Leakage and/or Leakage-to-Outside Duct Blaster Testing; • All evaporators and condensing units shall be properly matched with an AHRI certificate and properly identified using the look up tool in the online database; • Applications for incentives must be submitted to the program database monthly, with all required documentation regularly in accordance with the Builders’ commitment to the quarterly milestone completion percentages; • ENERGY STAR certified homes seeking the bonus incentive must successfully meet all ENERGY STAR® requirements for Version 3.1. The ENERGY STAR certificate must be available and supplied upon request.

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Program Responsibilities Each program participant will have their own set of responsibilities in the Program to make sure reporting and documentation requirements are met quarterly as defined in the Performance Milestones Requirements below. The Program expects homebuilders, raters, and HVAC contractors to work collaboratively with one another to ensure accurately and timely submissions. An invoice needs to be submitted monthly to CenterPoint Energy to request incentive payment on a batch of homes in ready status. Invoices are known as “Projects” within the Program database; currently, no more than one invoice can be submitted monthly; invoices must be submitted by the 15th of each month (or the following business day if the 15th falls on a weekend or national holiday); and the LM Energy account manager needs to be notified in advance if there are no homes to submit for a homebuilder. Performance Milestone Date Requirements During the year, homebuilders must meet the following Quarterly Milestone Performance Requirements. If a homebuilder fails to meet the milestones, all or a portion of a homebuilder’s incentive allocation may be re-allocated to other builders meeting the milestones in order to meet annual program goals. Milestone Date Performance Requirement April 28, 2018 Homes representing at least 25% of the incentive allocation must be submitted to the Program June 28, 2018 Homes representing at least 50% of the incentive allocation must be submitted to the Program September 28, 2018 Homes representing at least 75% of the incentive allocation must be submitted to the Program November 30, 2018 Homes representing at least 100% of the incentive allocation must be submitted to the Program Homebuilder Participation Requirements Participating homebuilders will receive incentives for each qualifying home submitted to the Program. The amount of incentives is determined by the performance, prescriptive or combination of the tier level achieved. It is the homebuilder’s primary responsibility to design, build, and market homes that comply with program requirements. In meeting these responsibilities, each participating homebuilder is required to: • Acquire Building Permits: Obtain building permits, if required by the applicable municipality; • Submit Documentation: Provide documentation as outlined in the following section titled “Reporting Requirements, Required Data”;

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• Use RESNET Approved HERS Rater: Use a RESNET approved HERS Rater(s) to provide testing on its program homes and a HERS Rating Provider(s) to prepare accurate, site specific HERS ratings with REM/Rate software. The homebuilder’s chosen HERS Rater(s) must be registered with the Program in order to be eligible to submit documentation on behalf of the homebuilder. HERS Raters are responsible for providing the address-specific REM/Rate file, Fuel Summary Report and all required data inputs in the “Rating Information” section of the database. Homebuilders should coordinate with their HERS Rater to insure all completed homes are invoiced each month to be eligible for incentive payments; and • Complete the online ENERGY STAR Builder Agreement (If an ENERGY STAR Builder Partner): Homebuilders participating in the Program, and wishing to build and market ENERGY STAR® certified homes, must complete the Environmental Protection Agency’s (“EPA”) “ENERGY STAR® Partnership Agreement” and must remain in active status with EPA’s voluntary program during the term of the Program (www.energystar.gov). HERS Rater Participation Requirements HERS Raters are hired by homebuilders to provide the necessary services to complete plan analysis, inspect new homes, and ensure energy-efficient requirements and specifications are met as required by the CenterPoint Energy High Efficiency Homes Program®, ENERGY STAR® or a homebuilder’s kWh savings goals. Raters operate under the guidance of HERS Rating Providers, accredited through RESNET (www.resnet.us), and provide third-party inspections, testing, and verification of energy-efficient measures installed in residential new homes. The rater’s primary responsibility is to work with homebuilders to facilitate the construction of ENERGY STAR® and High Efficiency homes that meet the performance requirements for the CenterPoint High Efficiency Homes Program®. Rater responsibilities include: • Providing design assistance and performing plan analysis to ensure homes meet program criteria; • Performing pre-drywall inspections including at a minimum: air sealing and air barrier inspections, and final testing including at minimum: envelope infiltration and duct leakage testing to the outside, to verify each home’s performance; • Ensuring each home meets the minimum program requirements; • Providing the address-specific REM/Rate file, Fuel Summary Report and all other required data entries as outlined in this document for home submittal; • Providing requested documentation for homes pending approval for payment for the randomly selected QA/QC addresses under review; and • Raters must provide CenterPoint Energy Inspectors with final inspection schedules pertaining to participating homes within the Program’s service area on a daily basis. Inspection schedules should be emailed to CenterPoint Energy Inspectors unless program staff has access to an online source for schedule information, use [email protected]. Additionally, HERS Raters must report the following information into the online system for all homes: • Final rating date or ENERGY STAR certification date; • HERS Score;

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• Heating Type; • If ENERGY STAR® 3.1 certified. • If the home was tested; and • QA documents, as requested HVAC Contractor Participation Requirements HVAC Contractors are integral to the overall comfort of a home’s occupants and to the energy performance of ENERGY STAR® and High Efficiency Homes. Program requirements include standards for the design, sizing (capacity), and installation of HVAC systems that is in accordance with ACCA standards. The HVAC contractor is critical to ensuring that industry-accepted standards are maintained. HVAC contractors should work with their homebuilders to evaluate cost effective HVAC options and/or efficiency improvements that will improve the overall comfort and energy efficiency (lower HERS Index and greater kWh savings) of the home. Contractors will be required to submit (through the online database) HVAC condenser and coil model, and furnace model (if applicable), along with AHRI certification information for all participating homes.

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Reporting Requirements, Required Data CenterPoint Energy is required to collect certain data from homes that are delivered to the Program. This data is usually collected by the HERS Rater during the final performance testing of the home. Homebuilders should work closely with their HERS Rater to ensure this information is submitted in the database. Financial incentives will only be paid after the Program receives the required information and verifies its accuracy. To receive incentives from the Program: 1. All required data for each home must be entered into the Program’s online database. 2. The HERS Rater must upload an address specific REM/Rate file and Fuel Summary Report generated by using the 2015 IECC baseline reference home. Additional reporting details, along with e-TRACK database instructions can be found here: https://centerpoint.anbetrack.com/centerpoint-energy-new-home-program.html Homebuilders Homebuilders, or their assigned HERS Rater, must report the following information into the online system for all homes: • ESI ID Number • Street Address • City, ZIP Code, State, County • Start Date/Permit Date • Local Energy Code version (2009, 2012, 2015 IECC) • Square Footage, Number of Floors • Plan Name/ID Number – (Including Elevation and Options) • HERS Rater HERS Raters Raters will be required to adhere to the modeling guidelines and tier specific reporting requirements when submitting a home for participation in the Program. • Energy models submitted to the Program must be created in REM/Rate 15.5, or the most current version; • Raters must verify, and where appropriate test, the energy features being reported to the Program. Raters should follow RESNET MINHERS and/or ANSI standards as required.

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HVAC Contractors HVAC Contractors will need to work in close collaboration with the Homebuilder and Rater to ensure a consistent understanding of the Program requirements to ensure the homebuilder’s program expectations are met. In addition to advising the homebuilders on how they can meet the program objectives, HVAC contractors will also be required to provide the following information to the Rater and/or Program database as necessary: • AHRI Reference Number • SEER (for all units in the Home) • HSPF, if applicable for heat pumps • Coil and Condenser Model Number • Furnace Model Number • System capacities • Mechanical ventilation o Strategy, e.g. system type o Operating hours/patterns o Ventilation fan wattage o CFM flow rate

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Quality Assurance/Quality Control In consultation with LM Energy, CenterPoint Energy will implement a Quality Assurance and Quality Control (QA/QC) field inspection program. The QA/QC program provides another layer of assurance to homebuilders that their homes meet ENERGY STAR® and/or the Program’s requirements and that HERS Raters are following RESNET standards. Raters will be required to submit daily inspection schedules to CenterPoint Energy Inspectors to allow for scheduling of onsite QA/QC visits. LM Energy will be performing an extensive desk QA/QC verification of homes submitted to the program to ensure all program requirements are met as outlined in this program manual. This will provide a higher level of program integrity and positively contribute to reporting results to the Public Utilities Commission of Texas. Corrective Action Procedure The goal of the QA/QC program’s corrective action plan is to help achieve continuous improvements in the CenterPoint High Efficiency Homes Program®. The results and findings of the QA/QC program will be shared with participating homebuilders and raters as needed during 2018. Below are the examples of the corrective action steps implemented throughout the program year: • 1st Offense: The HERS rating company and the builder will be notified and counseled by CenterPoint Energy and LM Energy program account managers. • 2nd Offense: The builder and the HERS rating company will again be notified and the builder incentive for homes not meeting the requirement will be forfeited. • 3rd Offense: The determination will be made by the Program depending on the circumstances and may include the HERS Rating company and/or builder being suspended from the Program for the remainder of the Program year. In the event that a home has already been paid but does not pass the QA/QC process, the homebuilder will have their following months invoice reduced by the amount of the incentive from the home that did not pass QA/QC.

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Program Implementation The CenterPoint High Efficiency Homes Program® can provide the following support to program participants upon request: • Program, Operational and Technical Leaders are available to guide homebuilder partners through the lifecycle of the Program; • Plan reviews and performance consulting to determine the most appropriate, cost effective measures needed to build ENERGY STAR® certified and High Efficiency Homes; and • Support for homebuilder marketing staff to help successfully integrate High Efficiency Homes into corporate messaging. Training The Program can guide homebuilders in how to best promote the ENERGY STAR® brand and other energy-efficient program branding, communicate the associated benefits of buying an ENERGY STAR® certified or High Efficiency home, and improve their homes’ energy performance. Additional Technical training workshops focusing on energy-efficient construction best practices will be announced during the year. Participating homebuilders are encouraged to take advantage of these resources to capitalize on the financial and marketing benefits associated with building ENERGY STAR® certified and High Efficiency homes. Program Outreach and Advertising CenterPoint Energy will sponsor an outreach and advertising campaign on behalf of homebuilders participating in the CenterPoint High Efficiency Homes Program®. The campaign will include TV spots, radio spots, outdoor billboards, online audio visual and video ads, online banner ads, email marketing and social media ads. ENERGY STAR® Certification Requirements For a home to earn the ENERGY STAR® certification, it must meet the Environmental Protection Agency’s (EPA) strict guidelines for energy efficiency. An accredited HERS Rater must test the home’s energy performance using an approved simulation program. The rater then completes on-site inspections and diagnostic tests. The result is a HERS Index on a scale of 1-100. All ENERGY STAR® certified homes in Texas must achieve the required HERS Index or lower and meet specific duct leakage, appliance and Checklist requirements. Once certified, a rating provider can issue the home’s ENERGY STAR® certificate and place the label on the home’s breaker box. Please visit http://www.energystar.gov/ for more information about the national ENERGY STAR® Homes Program. Only ENERGY STAR 3.1 certified homes will be eligible to receive an additional $50 incentive.

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Step-by-Step Guide to ENERGY STAR Home Certification 1. Fill out the Online Partnership Agreement with the National ENERGY STAR® Homes Program. The agreement is located online at the following Web site: http://www.energystar.gov/index.cfm?c=bldrs_lenders_Raters.nh_join 2. Select an accredited HERS Rater/rating provider. 3. Work with your HERS Rater to identify the energy efficiency measures needed to meet or exceed ENERGY STAR® specifications. 4. Build homes according to the measures you have selected. 5. Determine the best testing methodology to certify your homes. The EPA allows a limited number of verification options from which you may choose. 6. Conduct on-site inspections and home performance testing. 7. Obtain an ENERGY STAR® label and certificate from your HERS Rater for each certified home. Additionally, FREE marketing materials are available through the National ENERGY STAR® Program. To obtain ENERGY STAR® materials, visit http://www.energystar.gov/ and click on Partner Resources. A variety of free publications are available for ENERGY STAR® Partners, including EPA’s ENERGY STAR® New Homes brochure. Brochures and posters describing energy-efficient HVAC systems, duct sealing, and other topics are available as well.

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Appendices A. CenterPoint Service Territory Gas and Electric Electric Only Alvin*** League City*** Arocola Angleton** Liverpool* Bonney Baytown* Manvel* Brazos Country Beach City* Meadows Place* Cove Beasley* Missouri City* Fairchilds Bellaire* Mont Belvieu* Galveston Brookshire* Morgan's Point* Iowa Colony Brookside Village* Nassau Bay* Jamaica Beach Village Bunker Hill Village* Needville* Magnolia Clear Lake Shores* New Waverly* Old-River Winfree Clute* Oak Ridge North* Pattison Conroe** * Orchard* Pine Island Cut and Shoot** Oyster Creek* Prairie View Danbury* Panorama Village* Quintana Deer Park* Pasadena* San Felipe Dickinson*** Pearland** Sandy Point East Bernard* Piney Point Village* Thompsons El Lago* Pleak* Tiki Island Freeport* Richmond* Tomball Friendswood*** Richwood* Waller Galena Park* Roman Forest* Hedwig Village* Rosenberg* Hillcrest Village* Santa Fe* Hilshire Village* Seabrook* Hitchcock* Shenandoah** Houston* Shoreacres* Humble* South Houston* Hunters Creek Village* Southside Place* Jacinto City* Spring Valley* Jersey Village* Stafford* Jones Creek* Sugar Land* Katy* Taylor Lake Village* Kemah* Texas City*** Kendleton* Wallis* La Marque*** Webster* La Porte* West Columbia*** Lake Jackson* West University Place* Wharton* Willis** * Indicates customers with electric and gas services ** Indicates customers with gas services only *** Indicates customers with gas services and a minority of customers with electric services - See more at: http://www.centerpointenergy.com/en-us/Corp/Pages/communities-we-serve-HO.aspx

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B. Mechanical Ventilation Guidance The procedure for measuring airflow of mechanical Ventilation systems should be as described in the approved ANSI/RESNET/ICC 380-2016 Addendum A-2017, Attics and Crawlspaces. See for more information: http://www.resnet.us/blog/wp-content/uploads/2016/01/ANSIRESNETICC380-2016AddendumA2017.pdf