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Dec142009

LIGH&BC Retrofit Grant App

Monday, December 14, 2009 at 6:22PM

Long Island Green Homes and Buildings Consortium Retrofit Ramp-up Proposal

“Let’s figure out what projects, what investments are going to give the American economy the most bang for the buck, how can we protect taxpayer dollars,…create the jobs that are so desperately needed, and spur on economic growth and business creation in the private sector.” -President-Elect Barack Obama, 11/18/08

Executive Summary

Set in quintessential suburbia, Long Island Green Homes (LIGH), a residential retrofit program, has been operational since the fall of 2008. In coordination with Long Island’s Weatherization Assistance Program (WAP) sub-grantee and other key stakeholders, LIGH is set to go to scale in eight towns with a combined population of 1.9M and 527K detached houses. Developed and launched by the Town of Babylon (pop. 216,000), LIGH has exceeded its pilot target of 250 deep retrofits, surpassing the results of many conventional home performance programs. LIGH’s municipally-administered delivery system has eliminated customary barriers by providing one-stop retrofits to homeowners for whom it is now easy to make their homes more comfortable and affordable. LIGH contractors have increased their employee rolls as traditional builders have become BPI-certified to work in the program. Tradesmen and women are being put to work to save homeowners money in a municipally-financed program that gets its money back.

LIGH helps homeowners to make energy-saving improvements to their homes with almost no upfront costs for the homeowners. This results in lower utility bills for the homeowners, reduction in energy use and less pollution in our communities. The improvements are made possible by the use of Benefit Assessment PACE financing. Beyond the economic impact of saving utility consumption in our communities, the program also is a major provider of jobs in small family-owned construction companies, who are licensed by the town to conduct the improvements.

The Long Island Green Homes & Building Consortium (LIGHBC) will make a significant impact on the regional residential and commercial energy markets. The key to the expanded program is partnership among the participating Towns, each of whom has established its own EECBG initiatives, which will be supplemented and enhanced by this group effort. The not-for-profit CDC of Long Island (CDC-LI), the WAP and American Recovery and Reinvestment (ARRA) sub-grantee for Nassau and Suffolk Counties, which has provided weatherization assistance to 15,000 residential units over the past 20 years, will be the fiscal agent for the program and carry out all important administrative duties. Under this expanded program, each participating municipality will establish a local office of LIGH with a Project Director, web site and telephone “green line.” The Consortium also involves participation and involvement of many Long Island leaders in the fields of energy, education, and business.

LIGH’S success in Babylon has drawn significant attention nationwide. Through the not-for-profit The Babylon Project (TBP), program development and expertise have been shared with municipalities from Montgomery County, Maryland to Portland, Oregon. TBP has provided on-going support to neighboring Brookhaven in the introduction of its own Green Homes program. A total of 8 Long Island towns (Babylon, Brookhaven, Huntington, Islip, North Hempstead, Oyster Bay, Smithtown and Southampton) have committed 20% from their EECBG formula allocation to provide revolving funds for the launch of their own Long Island Green Homes and Buildings (LIGHB) programs. Formal establishment of the Consortium is dependent on securing DOE funding under this Retrofit Ramp Up application.

As LIGHB rolls out across the region, TBP experience will continue to guide retrofit work on Long Island, helping to develop ways to offer the same one-stop retrofit process to commercial and multi-residential buildings that has proven so successful with single-family detached houses. Babylon is already carrying out such initiatives with its EECBG-funded GreenCom Program.

One core feature of the LIGH model is Property Assessed Clean Energy (PACE) financing, which assigns the cost of the finished work via a benefit assessment attached to the property. Though Babylon has historically financed the retrofit work with its own funds, the senior lien status securitizes the completed retrofit loan, making it a key feature in attracting equity from private investors. The expansion of LIGH across Long Island will provide our consortium members with the opportunity to operationalize PACE financing with $200 million of capital raised from private investment interests.

From its inception, Long Island Green Homes has drawn on an array of stakeholders to enhance its effectiveness. LIGH has established a strong working relationship with the Long Island Power Authority (LIPA), National Grid, and oil heat providers in our region. The Long Island Energy Task Force/Sustainability Institute at Molloy College will participate in the role of advocacy and marketing. A force of building performance contractors, trained by LIPA, is joining with the building trades to establish a corps of eligible contractors. The Advanced Energy Research and Technology Center at Stony Brook University (SUNY) in conjunction with Brookhaven National Laboratory will engage in quantitative analysis and performance evaluation. SUNY Farmingdale, New York Institute of Technology, Hofstra University and Suffolk County Community College are all available to provide various levels of program-related training. In addition, NYSERDA has included LIGH staff in both its Finance and Implementation Working Groups for its roll-out of the Green Jobs-Green New York program. CDC-LI also serves on the NYSERDA outreach committee for Green Jobs-Green NY.

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