Missouri Division of Energy Missouri Home Energy Certification (MHEC) NASEO Energy Policy Outlook Conference February 7-10, 2017

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1 Missouri Division of Energy Missouri Home Energy Certification (MHEC) NASEO Energy Policy Outlook Conference February 7-10, 2017

2 About Missouri Division of Energy As the state s energy office The Missouri Division of Energy assists, educates, and encourages Missourians to advance the efficient use of diverse energy resources to drive economic development, provide for a healthier environment and to achieve greater energy security for future generations.

3 Background - Relatively low utility rates. - Home rule state. - No statewide energy codes. - No Public Benefit Funds for EE/RE

4 MHEC Program Snapshot MHEC is a voluntary state-wide program administered by the Missouri Department of Economic Development/Division of Energy, designed to promote energy efficient homes through clear and meaningful recognition.

5 MHEC Program Snapshot Incorporates a number of existing national and local residential EE programs and creates a level of consistency with a single platform. Recognizes both highly efficient new homes and existing homes that have implemented EE improvements for achieving a high EE level. Involved many stakeholders during the program development and implementation.

6 Benefits Business opportunities from market needs - Certified green homes are sold on average at 9% higher than comparable homes in California 1 and 9.6% higher in Seattle, WA 2. Attractive financing options for contractors and homeowners. Marketing assistance from state and local programs. 1. Kok, Nils and Kahn, Matthew E, 2012. The Value of Green Labels in the California Housing Market: An Economic Analysis of the Impact of Green Labeling on the Sales Price of a Home. 2. Ann Griffin, 2009. Certified Home Performance: Assessing the Market Impacts of Third Party Certification on Residential Properties.

7 MHEC Program Overview Both new and existing single-family homes are eligible. Two certification levels: Gold and Silver.

8 MHEC Paths for Gold Certification An eligible home must achieve one of the following: Score of 8 or greater on the HES. Score of 65 or less on the HERS Index. Receive a Columbia Water & Light Efficiency Score backed by a HES of 8 or greater. Achieve the equivalence of the 2012 IECC for climate zone 4. ENERGY STAR Certified homes

9 MHEC Paths for Silver Certification An eligible home must achieve one of the following: All cost effective improvements in HES have been implemented. 20 point decrease on the HERS Index. 90% efficiency rating on the CWL Efficiency Score. 20% energy savings as modeled by an approved program or approved modeling software.

10 MHEC Certification Process Applications must be submitted by a Certified Home Energy Auditor. No application fee is required by DE. Applications are submitted online (house details, improvements, and energy audit and improvements documentation). DE reviews and approves applications. Official certificate is generated automatically in the form of a PDF file. Energy auditors and homeowners are notified via email.

11 Missouri Certified Home Energy Auditors Application Form & Instructions http://energy.mo.gov/ energy/hea

12 MHEC Next Steps Work with Investor-Owned and Municipal Utilities to align energy efficiency programs. Reach out to realtors, inspectors, appraisers and homebuilder organizations. Survey modeling software used by home energy auditors. Develop ready-to-use-marketing packages.

13 MHEC Next Steps (cont.) Improve MHEC online application system. Increase the number of MO certified Home Energy Auditors. Increase the number of homes certified through MHEC. Work with residential energy stakeholders to overcome technical and market barriers.

14 For More MHEC Information Visit our program webpage: http://energy.mo.gov/energy/mhec or email mhec@ded.mo.gov Contact: Ming Xu (855) 522-2796 ming.xu@ded.mo.gov