An Estimate of Direct Full-Time Equivalent (FTE) Employment in 2011 Supported by Mass Save Energy Efficiency Programs A Study by the New England Clean Energy Foundation Completed for Program Administrators at: Berkshire Gas Cape Light Compact Columbia Gas of Massachusetts National Grid New England Gas Company NSTAR Gas and Electric Unitil Western Massachusetts Electric Company Research Team: Steve Weisman, Peregrine Energy Group, Inc. Fran Cummings, Peregrine Energy Group, Inc. John Snell, Peregrine Energy Group, Inc. Bruce Ledgerwood, Independent Consultant Art Willcox, Independent Consultant Kevin Doyle, Principal, Green Economy 2 Table of Contents I. Acknowledgements…………………………………………………………………………………………….4 II. Executive Summary with Purpose and Goals of the Study…………………………………..6 III. Mass Save Residential Energy Efficiency Programs (1 – 4 Unit and Multifamily)………………………………………………………………………………………………………..8 A. Program Overviews………………………………………………………………………………………8 1. General Descriptions………………..................................................................8 2. Delivery Methods……………………………………………………………………………………9 3. Funding Sources and Expenditures………………………………………………………..13 B. Methodologies for Assessing Direct Employment……………………………………….14 C. Findings: Employment Associated with Residential Programs…………………….19 IV. Low Income Residential Energy Efficiency Programs (1 – 4 Unit and Multifamily)………………………………………………………………………………………………………21 A. Program Overviews…………………………………………………………………………………….21 1. General Descriptions…………………………………………………………………………….21 2. Delivery Methods………………………………………………………………………………….22 3. Funding Sources and Expenditures………………………………………………………..23 B. Methodologies for Assessing Direct Employment……………………………………….25 C. Findings: Employment Associated with Low-Income Programs…………………..27 V. Commercial and Industrial Energy Efficiency Programs (Direct Install and Large Retrofit)…………………………………………………………………………………………………………….29 A. Program Overviews…………………………………………………………………………………….29 1. General Descriptions…………………………………………………………………………….29 2. Delivery Methods………………………………………………………………………………….33 3. Funding Sources and Expenditures………………………………………………………..35 B. Methodologies for Assessing Direct Employment Impacts………………………….37 C. Findings: Employment Associated with the Direct Install and Large Retrofit Programs…………………………………………………………………………………………………….42 VI. Profiles of the Energy Efficiency Workforce in Action……………………………………….45 A. Residential: Next Step Living……………………………………………………………………….45 B. Low Income: Action for Boston Community Development (ABCD)………………48 C. C&I Direct Install: RISE Engineering……………………………………………………………..51 3 VII. Project Manager Contact Information………………………………………………………………54 VIII. Appendices and Attachments……………………………………………………………………………55 a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. r. National Grid Electric Large C&I Program Installers of Record…………………….56 NSTAR Electric Large C&I Program Installers of Record……………………………….58 National Grid Natural Gas Large C&I Program Installers of Record………………61 National Grid C&I Project Expediters…………………………………………………………..62 C&I Technical Assistance Service Providers (Partial Listing)…………………………63 Mass Save Participating Independent Installation Contractors (NSTAR Gas and Electric)………………………………………………………………………………………………..64 Mass Save Participating Independent Installation Contractors (National Grid)……………………………………………………………………………………………………………65 Mass Save Participating Independent Installation Contractors (Columbia Gas)…………………………………………………………………………………………………………….66 Mass Save Participating Independent Installation Contractors (Cape Light)….……………………………………………………………………………………………………….67 Mass Save Participating Independent Installation Contractors (Berkshire Gas)….…………………………………………………………………………………………………………68 Mass Save Participating Independent Installation Contractors (WMECO)……69 Mass Save Participating Independent Installation Contractors (New England Gas Company)…………………………………………………………………………………………….70 Mass Save Participating Home Performance Contractors (National Grid)……71 Mass Save Participating Home Performance Contractors (NSTAR Gas and Electric)……………………………………………………………………………………………………….72 Mass Save Participating Home Performance Contractors (Columbia Gas)…..73 Mass Save Participating Home Performance Contractors (WMECO)……………74 Low Income Program Assumptions and Calculations…………………………………..75 Residential Program Survey Instrument………………………………………………………76 4 I. Acknowledgements This research effort would not have been possible without the engaged participation of dozens of people throughout the energy efficiency community in Massachusetts. We would like to extend our gratitude to everyone who helped us develop methodologies, and who shared information about their energy efficiency processes and workforce deployment. First thanks goes to our study’s funders; the collective Program Administrators (PAs) from Berkshire Gas, Cape Light Compact, Columbia Gas of Massachusetts, National Grid, New England Gas Company, NSTAR Gas and Electric, Unitil, and Western Massachusetts Electric Company. We especially acknowledge Lisa Shea from NSTAR Gas and Electric and Lynn Westerlind from National Grid, who represented the Program Administrators and provided leadership, guidance and assistance. Thanks to Jodi Hanover from Rich May, whose help was essential. The contribution of Ralph Prahl, research evaluator to the Massachusetts Energy Efficiency Advisory Committee was invaluable. Ralph’s questions, suggestions and edits greatly improved made the final report. We were fortunate to have an excellent research team, and we thank Steven Weisman, Fran Cummings and John Snell from Peregrine Energy Group; and independent researchers Bruce Ledgerwood, Art Willcox, and Alix Monestime. Kevin Doyle from Green Economy selected the team and served as the Foundation’s project manager. Most importantly, we would like to thank the many people whose advice and information was essential, including: The members of Mass Save’s Residential Energy Efficiency Management Committee The members of Mass Save’s Commercial and Industrial Management Committee David Fuller, Massachusetts Department of Housing and Community Development John Wells and David MacLellan, Action for Boston Community Development, Inc. Elliott Jacobson and Rita Carvalho, Action, Inc. Larry Masland, Department of Energy Resources Dennis DeGrazia, Construction Energy Services, Inc. Frank Gundal, NSTAR Gas and Electric Mark Churchill, NSTAR Gas and Electric Liping Ren, NSTAR Gas and Electric Katelyn Mazuera, NSTAR Gas and Electric Charles Olsson, NSTAR Gas and Electric Polly Field, NSTAR Gas and Electric John Walsh, NU/WMECo Matt Zenni, New England Gas Andrea Dickson, National Grid Jean Mangini, National Grid Monica Tawfik, National Grid Marie Abdou, National Grid Vin Graziano and staff, RISE Engineering Peter Fairbanks and staff, Bluestone Energy Rebecca Golding, Munro Distributing 5 Phil Moffitt, Cape Light Compact Steven Finnegan, Honeywell Jae McAuley, Center for Ecological Technology Robert Eckel, Conservation Services Group Rick Giles, Conservation Services Group Bill Footer, Conservation Services Group Geoff Chapin, Next Step Living Domenic Galdo, Next Step Living Dave Boettcher, Next Step Living Michael Plasski, Mass Save And, representatives from the dozens of independent installation contractors and home performance contractors who completed our surveys and answered questions. The accuracy of the workforce estimates in this report are the result of contributions from all of the professionals above. Any errors or omissions are certainly our own. Thank you to everyone. Yours, Andrew Wilson Executive Director New England Clean Energy Foundation 6 II. Executive Summary This New England Clean Energy Foundation research study was commissioned by the energy efficiency program administrators from NSTAR Gas and Electric, National Grid, New England Gas Company, Cape Light Compact, Western Massachusetts Electric Company, Unitil, Columbia Gas, and Berkshire Gas. The purpose of the study was to estimate the number of direct full-time equivalent (FTE) workers involved in implementing the energy efficiency activities of the Mass Save program in calendar year 2011. By studying a single year in detail, using data provided by utilities about actual energy efficiency installations, the program administrators hope to contribute to the growing literature that is accurately characterizing and sizing the energy efficiency workforce. In addition, these research results will help the program administrators highlight and celebrate the work of hundreds of professionals, skilled laborers, and support staff throughout Massachusetts whose success is largely responsible for the Commonwealth’s reputation as a national energy efficiency leader. The research results reported here are expected to be included in the three-year energy efficiency plan submitted to the Massachusetts Energy Efficiency Advisory Council by the collective utilities listed above. Using the methodologies described in detail in this report, the NECEF study team estimates that a minimum of 2,212 direct “full time equivalent” (FTE) workers in selected labor categories were employed across Massachusetts in 2011 to deliver energy efficiency services through Mass Save and some related programs. Specifically, the 2011 workforce included at least: 773 direct FTE workers associated with Low-Income Energy Efficiency Programs; 834 direct FTE workers associated with other Mass Save Residential Programs, and; 605 direct FTE workers associated with Commercial/Industrial Programs. Beyond the overall numbers, the report is often able to break down the workforce into labor categories - providing information on the distribution of workers across administrative, management, auditing, installation, and other groupings. Our minimum estimate of 2,212 direct FTEs does not capture all workers involved in these energy efficiency programs in 2011. We focused on employment at vendors and contractors for most residential, and all Commercial/Industrial programs; and therefore generally did not include the two categories of internal energy efficiency utility and government positions. We were able to perform a more comprehensive analysis for the Low Income Program, resulting in an employment estimate that includes those two categories. If the categories had been included across the board, and found to be in roughly the same proportion to the overall workforce as in the Low-Income Program analysis, the total estimated 2011 Mass Save workforce would rise to approximately 2,500 direct FTEs. 7 It’s important to note that this NECEF research effort is not an “economic impact” study. There is a growing literature of research that seeks to quantify not only narrowly defined direct jobs, but the overall economic and job creation impact of energy efficiency investments. The result of these studies is often a determination of “number of jobs created per million dollars spent” as a way of expressing the job creation “return” on the energy efficiency “investment”. These studies typically use economic and workforce models to estimate direct, “indirect” and “induced” job creation throughout “value chains” that include not only direct energy efficiency design and installation work; but also the jobs supported at manufacturers, distributors and retailers when their windows, insulation material, lighting, equipment and other goods are purchased and delivered for energy efficiency work. Many of these studies also include estimates of the added economic and job creation impact that is generated when citizens and businesses receive reduced energy bills. Spending less on energy leaves them with newly available money that can be spent on other kinds of goods and services, creating an additional economic impact. Such studies are valuable and important, but the NECEF research effort described in this report is pointedly not an “economic impact” study, nor was it designed to be. The purpose and goal of this study does not extend beyond estimating and characterizing the number of direct FTE workers involved in delivering a specific set of Mass Save energy efficiency results in the single year of 2011. Finally, to give some context to the workforce estimates for 2011, this report also includes: Detailed descriptions of specific Mass Save energy efficiency programs; Appendices listing the company names of many of the primary employers involved in delivering Mass Save energy efficiency services to homes and businesses; Case study descriptions of representative Mass Save work assignments prepared for us by three leading energy efficiency providers: Action for Boston Community Development (ABCD), RISE Engineering, and Next Step Living. Taken together, the information and appendices included here provides important information for researchers and the public, but of particular value to those in the workforce development and training community in Massachusetts who are interested in local sources of “green jobs”. 8 III. Residential Energy Efficiency Programs (1 – 4 Unit and Multifamily) A. Program Overviews General Descriptions 1 – 4 Unit Program The Three Year Plan for Energy Efficiency for 2010-12, dated October 29, 2009, describes the Residential 1 – 4 Unit Program as follows (p. 146): The program is committed to a comprehensive whole-house approach and seeks to maximize both electric and gas energy savings (including fuel neutral incentives). The program plans to fully integrate the RCS/Mass Save and Gas weatherization programs, so that customers experience one program as opposed to multiple offerings. Through the intake process, the customer‘s primary heat source will be identified. The purpose of the screening is to steer customers using natural gas for space heating to the gas Program Administrators and customers using electric, oil or propane for space heating to the electric Program Administrators. Exceptions to this guideline may occur (e.g., specialized high bill complaints, community outreach programs, and/or prior mutual agreements), and in these cases, the electric Program Administrators will seek to negotiate in good faith with the gas Program Administrators to achieve a resolution that serves the best interest of the consumer, maximizes savings opportunities on a fuel-neutral basis, and allows the overseeing Program Administrator to claim savings. The program is committed to achieving maximum program success and deeper energy savings. This is a significant leap forward, making distinctions between programs indiscernible to consumers. The program clearly defines the process and expectations of the customers up front and identifies those customers interested in investing in controlling their future energy costs. In 2011, the Mass Save® Home Energy Services program provided energy efficiency services and incentives for residents of buildings with 1-4 units. Mass Save is sponsored by Massachusetts’ gas and electric utilities and energy efficiency service providers, including: Columbia Gas of Massachusetts, The Berkshire Gas Company, Cape Light Compact, National Grid, New England Gas Company, NSTAR Gas and Electric, Unitil, and Western Massachusetts Electric Company. The program is facilitated by several different Lead Vendors, varying by geographic area and utility or energy efficiency service provider. The Home Energy Services program provided a Home Energy Assessment with on-site customer-specific information at no cost to the customer including free installation of 9 “instant savings measures” such as CFLs and showerheads. In 2011, the Program offered free air sealing and an incentive of 75 percent of the installed cost of contractorinstalled insulation, up to $2,000. Multifamily Retrofit Program As described on page 181 of the Three Year Plan 2010-2012, Multifamily Retrofit Program design was based upon the following guiding principles: Participants will initiate a request for all program services through one party, without the need to directly contact multiple program administrators or multiple parties within the same program administrator. Throughout the project life cycle, the participant will have access to a single point-of contact that will facilitate all programmatic communication and coordination. Eligibility for program measures and services will be based on cost-effectiveness and will not be restricted by the rate class associated with the meter(s) for the facility. The program is structured to ensure that participants are provided with a whole building, fully integrated offering targeting both gas and electric end-uses. While on-site, however, all opportunities, regardless of fuel source, will be identified and documented for the customer. All efforts required to deliver a fully integrated gas and electric offering to a participant (the audit will be offered for propane and oil end-uses, however, at this time incentives will be provided only for gas and electric measures), regardless of service territory or rate class, will be performed in a manner that will result in a seamless customer experience, thus mitigating the potential for customer confusion and lost opportunities. The cornerstone of the program design involves the services of a Multifamily Market Integrator who will provide project management services to ensure the seamless delivery of the program. Delivery Methods 1 – 4 Unit Program The Mass Save® Home Energy Services program was delivered primarily through insulation and other weatherization contractors. Contractors could choose one of two options for working in the Mass Save Home Energy Services program: as a Home Performance Contractor (HPC) or as an Independent Installation Contractor (IIC). The key differences between the two were in the range of services the contractor provided, how customers were acquired, and the qualifications required for each. 10 Home Performance Contractors. Home Performance Contractors (“HPCs”) performed home energy assessments and installed air sealing and insulation measures, consistent with Mass Save standards and using software provided by the Lead Vendor. HPCs were responsible for doing their own marketing and sales and acquiring their own customers. Work was not assigned to HPCs by Mass Save Lead Vendors. Independent Installation Contractors. Independent Installation Contractors (“IICs”) performed air sealing and insulation work in compliance with clearly documented standards that are provided by the program. IICs did not perform home energy assessments (aka energy audits) in the Home Energy Services program; instead, these were performed by Lead Vendors. Work was assigned to IICs by the Lead Vendor, based on a merit-based allocation program. IICs could pre-qualify customers, “tag” them, and refer them to the program. If an IIC hads appropriately tagged a customer, the weatherization work for this customer was then be assigned to that IIC after the home energy assessment had been completed. “Tagging” normally involved a formal process, with a form that must be completed. There were basic requirements for all contractors who worked in the Mass Save Home Energy Services program. Specific requirements could vary for each Lead Vendor and Program Administrator/Utility/Energy Efficiency Service Provider, and these requirements were spelled out in the Participation Agreement that the contractors sign with the Lead Vendor. Mass Save had established the following general requirement guidelines: i. Insurance: All contractors must have in place and maintain the coverage specified in the participation agreement. Normally the Lead Vendor and the Program Administrator/Utility/Energy Efficiency Service Provider must also be listed as certificate holders on the policies (except for Worker’s Compensation). An example of the types and amounts of coverage required is listed below, but be aware that these could change. – – – – Worker’s Compensation as required by law Comprehensive General Liability for bodily injury, personal injury, property damage and contractual liability, $1,000,000 per occurrence/$2,000,000 in the aggregate Excess/Umbrella Liability insurance in the amount of $1,000,000 in the aggregate Comprehensive Automobile Liability on all cars/trucks used by in connection with work in amount of $1,000,000 combined single limit. 11 ii. Licenses – Massachusetts Unrestricted Construction Supervisors License (CSL) or Insulation Contractor Supervisors License (ICSL) – – Registration as a Home Improvement Contractor (HIC) in Massachusetts Sheet Metal License (if applicable) iii. Certifications – – – – MA State Lead Safety Certificate All Energy Specialists required to have BPI Building Analyst certification. Each Crew Chief must be certified through one of the following pathways: Boot Camp Authorization + Combustion Safety Training (Boot Camp Authorization requires Basic and Advanced Air Sealing Authorizations + Advanced Insulation Authorization) Boot Camp Authorization + BPI Building Analyst Certification (Boot Camp Authorization requires Basic and Advanced Air Sealing Authorizations + Advanced Insulation Authorization) BPI Crew Chief Certification DOE Weatherization Crew Chief Certification BPI Envelope Specialist: One person in the organization must have obtained BPI Envelope Specialist certification. This requirement applies to both HPCs and IICs. iv. Background checks Policies vary by Lead Vendor and by Program Administrator/ Utility/Energy Efficiency Service Provider. Generally, most or all of the checks listed below required. Additional background information may also be required. – – – – – – – – Identification Verification/Eligibility to Work in the Country Criminal History Background Checks Sex Offender Registry Search Residential Address Verification Employment History Verification Motor Vehicle Driving Record Check Employees Previously Terminated or Removed from Work for Lead Vendor, Utility, or Energy Efficiency Service Provider (PA) for Cause Drug Screening v. Equipment: At minimum, the following specialized equipment will be necessary, along with normal equipment and tools such as trucks, ladders, power and hand tools, etc. – Blower door 12 – – Insulation blower Combustion safety testing equipment vi. Weatherization Boot Camp – – Crew Chiefs must complete all requirements for the following designations of the Weatherization Boot Camp: Basic and Advanced Air Sealing, Basic and Advanced Insulation. (Boot camp training subsidized by utilities and energy efficiency service provider, and cost to contractors in Mass Save Home Energy Services program is nominal.) Crew Chiefs must also complete Combustion Safety Training and be able to perform combustion safety testing to BPI standards; this requirement includes all IICs, not HPCs alone. Independent Installation Contractors (IICs) were assigned work by Lead Vendors. When an IIC referred a customer to Home Energy Services, any resulting insulation work would be assigned to that IIC through a “tagging” process. Unaffiliated customers (i.e., those referred to the program and not “tagged” by a participating IIC) were assigned on a rotational basis.; The quality of each IICs work and customer service over time would affect the amount of work the IIC was allocated. Multifamily Retrofit Program During 2010, the PAs selected a Multifamily Market Integrator to help provide a more fully integrated and statewide consistent experience for multifamily customers. This role was designed to ensure a seamless customer experience for participants regardless of the fuels, rates and service territories involved in a project. The Multifamily Market Integrator acted as the conduit through which participant questions were directed to ensure that participants did not need to directly contact multiple parties during the project lifecycle. The Multifamily Market Integrator worked with other multifamily implementation vendors to facilitate the delivery of program services. The PAs selected RISE Engineering to be the Multifamily Market Integrator. RISE received incoming phone call inquiries and assigned each job to the appropriate Multifamily Program provider. NSTAR Gas and Electric subcontracted 100% of its residential multifamily electricity and gas account services to Conservation Services Group (CSG), but provided most of its commercial multifamily electricity and gas account services in-house with assistance from pre-approved consultants as required. National Grid subcontracted 50% of its residential multifamily electricity and gas account services with CSG and the other 50% with RISE; and National Grid subcontracted 100% of its commercial multifamily electricity and gas account services with its commercial gas vendor RISE Engineering. The Multifamily Program 13 providers performed energy assessments and provided project management services for each development that requested energy efficiency services. Pre-approved independent contractors performed most of the installation work. Building owners and managers could use their own contractors and get reimbursed at the preapproved program measure rates, provided that they had Program Administrator approval through documenting their qualifications prior to the installation. Funding Sources and Expenditures Program funds provided by program administrators come out of the approved energy efficiency budgets. These budgets are funded by utility bill surcharges for energy efficiency and with other funds that the State decides to apply to these programs. The following funds were paid to participating customers for rebates and other incentives for energy efficiency as reported by the PAs in 2011: Participant Incentives Mass Save & Gas Weatherization Multifamily Retrofit Electric Utilities Cape Light Compact National Grid (electric) NSTAR (electric) Unitil (electric) Western Mass Electric Electric Sub-Total $4,604,347 $11,145,110 $9,367,748 $454,087 $1,751,170 $163,885 $4,974,158 $3,969,309 $3,120 $75,957 $27,322,462 $9,186,429 $288,397 $1,444,776 $6,738,418 $75,825 $2,107,393 $42,598 $7,582 $36,284 $1,554,951 $25,841 $903,503 $0 $10,697,408 $2,528,162 $38,019,870 $11,714,591 Natural Gas Utilities Berkshire Gas Columbia Gas National Grid (gas) New England Gas NSTAR (gas) Unitil (gas) Natural Gas Sub-Total TOTAL These incentives for participants are summarized in column 1 of each of the following tables. The funds are presented in separate tables for the Low Income and other residential programs. In addition to incentives, the PAs also incurred other program 14 expenses, as shown in column 2, for total PA expenditures in column 3. In addition to Participant Incentives, the other categories of PA costs1 are: Program Planning and Administration Marketing and Advertising Sales, Technical Assistance (including Home Energy Assessments) & Training Evaluation and Market Research. The figure for co-pays for the non-low-income residential programs includes an estimate of the 25% of insulation costs that must be paid by participating customers themselves, and the $10/fixture co-pay for lighting fixtures in common areas of multifamily buildings. However, these are not necessarily all the co-pay or other costs incurred by participating customers.2 1 2 3 4 5 Incentives to Customers Other PA Expenses Total PA Program Costs Customer Co-Pays Total Residential Programs: 1-4 Unit $ Multifamily Non-Low-Income $ 38,019,870 $ 21,334,297 $ 59,354,167 $ 11,714,591 3,941,396 15,655,987 49,734,461 $ 25,275,693 $ 75,010,154 $ 9,540,000 $ 68,894,167 90,000 15,745,987 9,630,000 $ 84,640,154 B. Methodologies for Assessing Direct Employment In this section, we describe the methodology for our analysis of the number of full-time equivalent workers that have been associated with the delivery of Residential 1 – 4 Unit and Multifamily Retrofit Energy Efficiency Programs. This section summarizes our approach for non low-income residential retrofit program workforce results. For 1-4 family homes, we combine the Mass Save Home Energy Services program with the Gas Weatherization Program, even though they have been 1 As explained elsewhere, the employees of the PAs are included in the estimates of FTE for the Low Income programs, but not for other programs. Employees of PA contractors are included in this report for Lead Vendors and other implementation contractors, but not for other contractors (e.g., marketing, evaluation). 2 The figures for customer co-pays are not reported by the PAs but have been estimated for the same measure categories, which we have analyzed for the associated employment. There may be additional customer costs for additional measures such as HVAC system replacements, hot water heaters, duct insulation and refrigerators and other appliances, and additional costs for “pre-weatherization” requirements such as ventilation. 15 tracked separately for some utility reporting purposes.3 For larger buildings, we analyze the Multifamily Retrofit Program. The most reliable data with which to start estimating employment was in most cases the count of measures installed, such as homes insulated or fixtures replaced.4 Step 1: Identify measure categories for analysis. We estimated the employment associated with the installation of the following categories of measures: For 1-4 Unit Buildings, we considered: Insulation and air sealing Home energy assessments, including installation of “instant savings measures” (ISM) during the assessments For Multifamily Buildings, we considered: Insulation and air sealing (and other shell measures) Lamp replacements Fixture replacements Insulation and air sealing are lumped together as a single type of measure, since they were most often installed together in 2011 at the same time by the same crew, and there were very few homes which received only air sealing or only insulation, even though they are incentivized differently. We also analyzed the employment associated with window replacements using HEAT loans, as described below. Since the employment was small, it was included under the category “insulation and air sealing” for purposes of this report. Home Energy Assessments (or energy audits) were analyzed as a category, and include not only the time for the energy audit itself, but also the time to install “instant savings measures” (ISMs) during the audit, such as CFLs, aerators and showerheads. The following categories were not included in FTE estimates for 1-4 unit residential buildings, for reasons listed below: 3 HVAC system replacements Electric hot water heaters Duct sealing and duct insulation Refrigerator replacement The Gas Weatherization program was essentially merged into the Mass Save Home Energy Services Program during 2010 and 2011, such that its employment effects are not distinguishable for purposes of this report. 4 This is a different approach than that used for the low-income analysis, presented in a subsequent section, which began with expenditures and average measure costs to estimate number of measures installed. This difference was driven both by the availability of measure count data from the PAs and by the limited availability of expenditure data tracked at the measure level. 16 For multifamily buildings, the following categories of measures were not included in FTE estimates: HVAC system replacements Aerators Showerheads HVAC measures were not included in the analysis for non-low-income buildings, since information was unavailable at the time this work was done on the extent to which HVAC installations were done on an “early retirement” basis or would have been replaced without the programs, then the employment levels would not have been substantially affected for HVAC installers.5 The resulting categories were: 1-4 Unit Buildings Insulation and Air Sealing Home Energy Assessments (including installation of ISM “instant savings measures” during the assessments) Multifamily Buildings6 Insulation and Air Sealing (and other shell measures)7 Lamp replacements Fixture replacements. Step 2: Determine quantity of units installed in 2011: For insulation of 1-4 family homes, the PAs provided data indicating that approximately 15,326 homes were insulated in 2011 through the Mass Save Home Energy Services program for 1-4 family homes and the Gas Weatherization Program. The following summarizes the residential customers who received insulation through the Mass Save or Gas Weatherization programs in 2011: 5 To the extent that HVAC system replacements displace standard efficiency equipment, these are likely to have limited employment effects. On the other hand, the HVAC measures that were not analyzed for this report could be expected to generate some employment given that: (1) there are at least some early replacements and (2) efficient HVAC equipment may be somewhat more labor intensive to install than standard equipment. 6 For multifamily buildings, the mix of measures was less comprehensive than for the low-income multifamily program, and most of the installation activity was in lighting and insulation, so we analyze fewer measure categories than for low income. 7 The multifamily programs do not provide weatherization or shell measures to buildings using fuel oil or other deliverable fuels. 17 Homes Insulated in 2011 Electric Utilities Cape Light Compact 1,016 National Grid (electric) 3,208 NSTAR (electric) 2,546 Unitil (electric) 117 Western Mass Electric 139 Electric Sub-Total 7,026 Natural Gas Utilities Berkshire Gas 122 Columbia Gas 908 National Grid (gas) New England Gas NSTAR (gas) Unitil (gas) Natural Gas Sub-Total TOTAL 6,152 61 1,024 33 8,300 15,326 For multifamily buildings, we collected detailed 2011 data on the quantity of units installed for each measure type in 2011. NSTAR Gas and Electric data was used as the basis for this step since it combined all non-low-income multifamily buildings served in 2011 regardless of the account status of the customer (residential or commercial, electric or gas). NSTAR Electric represented 57% of 2011 expenditures by electric PAs on the non low-income multifamily retrofit program, and NSTAR Gas represented 30% of equivalent statewide gas expenditures. We assumed that the mix and quantity of measures installed was the same for the rest of the PAs. For lighting measures, the units were bulbs or fixtures. For the shell measures in the gas multifamily program, the units were mostly square feet of insulation and hours of air sealing time, which we aggregated into units served using assumptions from the low-income multifamily analysis. Step 3: Determine “time-to-install” FTE productivity factors: For each measure type, productivity is expressed as the average number of measures installed in a year by one FTE employee. We conducted a survey of the Mass Save Home Energy Services® Independent Installation Contractors (“IICs”) and Home Performance Contractors (“HPCs”), which showed an average productivity factor of 38 insulation installations for the year 2011 per FTE employed in the field as insulation installers, weighted by the number of homes insulated by each IIC respondent.8 For multifamily buildings, we 8 In 2011, most of the air sealing activity was conducted as an integral part of an attic insulation job, not as a separate activity as in 2008, so we do not count air sealing technicians separately. We invited all 74 IICs and 14 HPCs that were operating as part of the program at the end of 2011 to take the survey, with a combined response rate of 33% of the companies. The respondents reported a total of 8,097 homes insulated, which is 53% of the total homes insulated by Mass Save in 2011. 18 assumed the same productivity factors as were determined by our research for lowincome multifamily program or for the Commercial & Industrial program. For fixture measures, we used RS Means data on labor costs and rates for fixture types representative of the NSTAR Gas and Electric mix of actual fixtures replaced in 2011 to calculate a weighted average of 1.3 person-hours per fixture, which was approximately consistent with the productivity factor developed separately for the low-income multifamily analysis. Step 4: Calculate FTE for each measure type. To calculate the level of employment for IIC and HPC activities other than energy auditing, the quantity of units is divided by the respective FTE productivity factor. For energy auditors and PA vendors, the most reliable method was to simply collect FTE data directly from the companies. 9 IIC and HPC Employees. For the Home Energy Services program, we divided the 15,326 homes insulated by the productivity of 38 homes per FTE to yield the average number of installers of insulation and air sealing during 2011 (403).9 10 For back office, sales, and project management functions, the IIC survey showed an average of one FTE employed in office or management roles for every 3.3 installers, a rate which we applied to the IIC and HPC installers to estimate the number of such contractor office employees (123) in 2011. Energy Auditors and Lead Vendor Employees. To determine the number of energy specialists performing Home Energy Assessments and associated scheduling and call center activities and other Lead Vendor activities for 1-4 unit buildings, we collected data on staff levels at the end of 2011 from all the Lead Vendors (CSG, RISE, CET and Honeywell). In addition, we collected data from HPCs on the number of energy specialists performing Home Energy Assessments. We asked these companies to separate their energy specialists or energy auditors from other employees such as call center operators and managers. This provided reliable figures for the number of auditors/assessors without reliance on productivity assumptions from survey research. Multifamily Contractor Employees. To calculate the FTE of field installers, the number of homes insulated and the number of lamps and fixtures replaced were divided by the respective FTE productivity factor. For back office, sales, and project We also included in the insulation category 6 field workers installing efficient windows through the HEAT Loan portion of the program. Our estimate was based on data provided by the program vendor that 456 loans were provided for replacement windows in 2011, with an average loan volume for windows of $8,534. Therefore, the number of field installers for the Home Energy Services program is estimated to be 409, as reported in the next section. 10 Average 2011 employment levels were not the same as the FTE employed at the end of the year; the number of actual field employees reported by our survey respondents to be working on Mass Save at year-end (274) was 16% higher than the 2011 average calculated based on number of homes and productivity (235). 19 management functions, we used the same assumption as for the analysis of lowincome multifamily programs (i.e., contractor administrative staff can support 8 field workers). Multifamily Vendor Employees. We collected data on actual staff levels at the end of 2011 from two Vendors, CSG and RISE, representing PAs with over 60% of the budget for the non low-income Multifamily Retrofit Program. This included staff associated with the “MA multifamily Market Integrator” function as well as energy audit functions. We did not include vendor staff data for field installation functions, which in turn included weatherization, electrical and mechanical specialists, since they were covered by the estimates described above. This data also covered some subcontractor installers as well as vendor employees. We added 3 auditors and 2 office personnel as a conservative estimate for employees of other PA vendors. C. Residential Study Findings (non low income) We estimate that 958 full-time equivalent workers were associated with the delivery of the Residential 1 – 4 unit and Multifamily Retrofit Programs in 2011. This includes an estimated 834 FTE employees for the 1-4 unit Program, plus 124 FTE for the Multi-family Retrofit Program. Each of these categories of results will be described below. Mass Save 1 – 4 unit Program In 2011, approximately 834 full-time equivalent workers were associated with the delivery of residential retrofit programs for 1-4 unit buildings. As summarized in the table below, this number includes: 11 167 employees of Lead Vendors and HPCs doing home energy assessments, 409 employees of IICs (insulation contractors) and HPCs doing field installations of insulation and air sealing,11 135 employees of Lead Vendors (CSG, RISE, CET and Honeywell) and HPCs providing call center, scheduling and other activities for the Mass Save Home Energy Services program for 1-4 family homes, including overseeing Home Energy Assessments, and 123 employees of IICs (insulation contractors) and HPCs providing management and office support.12 This number includes an estimate of 6 FTE installing efficient windows through the HEAT Loan portion of the program, as described above. 12 For the non-low-income programs, we did not estimate the number of FTE providing program management and “oversight” at the PAs or state agencies or NGOs. 20 Home Energy Services Program (1-4 Units) Auditors Field Installers Office (Vendors) Office (Contractors) Total FTE 167 409 135 123 834 Estimated Employees (FTE) The average number of homes insulated by each IIC and HPC through Mass Save in 2011 was approximately 270. Most of the IICs did not limit their work to the Mass Save program; IICs also performed an average of 60 low-income Weatherization Assistance Program (“WAP”) weatherization projects and an average of 47 additional insulation projects outside of the PAs’ efficiency programs (i.e., as part of construction and renovation projects, without rebates). For the group of survey respondents as a whole, the 47 homes insulated without program funding equaled 17% of the number insulated through the Mass Save program. This suggests that in addition to the FTEs employed by IICs and HPCs to implement the Mass Save Home Energy Services program for 1-4 family homes, there may have been a significant number of additional FTEs employed insulating Massachusetts homes outside of the Mass Save program. The number of IIC insulation contractors who perform a relatively large number of installations has increased in the period from 2008 through 2011, with at least five contractors doing 500 or more homes through Home Energy Services in 2011. The average contractor responding to our survey employed 12 FTEs in 2011, including field and office personnel. Multifamily Retrofit Program Approximately 124 full-time equivalent workers were associated with the Multifamily program. This includes 83 field installers working on insulation and lighting measures, as presented in the table below. Residential Non-Low-Income Multifamily Program Auditors Field Installers Office (Vendors) Office (Contractors) Total FTE Multifamily Employees: Shell 30 8 Fixture/Lamp replacements 53 13 Program Vendors Subtotal, Non-L-I Multifamily 12 12 8 83 8 21 124 21 IV. Low Income Residential Energy Efficiency Programs (1 – 4 Unit and Multifamily) A. Program Overviews General Descriptions Low Income 1 – 4 Unit Program This program was offered to residential customers living in one- to four-unit dwellings who were at or below sixty percent (60%) of the state median income level. The objective of this program was to “increase energy efficiency and reduce the energy cost burden for incomeeligible customers through education and the installation of electric, oil, and gas energy efficiency measures to achieve deeper and broader energy savings.” As described in the Three Year Plan submitted in October 2009 (p. 210), This program piggybacks on the current DHCD low-income energy efficiency program. Once customers are deemed eligible, they will receive an in-home energy assessment from their local Network agency. The Network agency will then arrange for weatherization and other services to be installed by a qualified contractor. Savings will be deepened by installing additional efficiency measures, to the extent cost-effective, such as indirect water heaters with heating systems, exterior doors, front load clothes washers, smart strips, and repairs to make efficiency measures possible. Other measures will be investigated, such as solar water heaters and usage monitoring systems. In addition, a change in rules as a result of the American Recovery and Reinvestment Act (ARRA) makes it possible to spend more federal money in each home which will allow Program Administrator funding to help address more items on the cost effective priority list for each customer. Savings will be distributed more broadly by treating additional homes, including mobile homes (including contractor training if needed) and rental homes where tenants pay for heat. As a final step the Network agency will perform a final quality assurance inspection to ensure that all work is performed to program guidelines. Low-Income Multifamily Program The objective of this program was to “deliver energy efficient products and services directly to the dwellings of residential customers living in facilities with five or more units on the low-income rate or of eligible income-eligible residents living in multifamily non-institutional facilities with five or more units owned or operated by a non-profit entity or a public housing authority, by addressing the informational, economic, institutional, and technical barriers that have historically made the low-income multifamily market a “hard to reach” 22 sector in order to help eligible participants lower their energy bills.” The program aimed to broaden participation and achieve deeper savings per participant by integrating gas and electric measures into a single program. This program was designed to minimize or eliminate co-payments, integrate gas and electric program delivery, and integrate funding across all sectors that serve low-income multifamily facilities to the greatest extent possible. Eligibility for program measures and services would be based on the established program cost-effectiveness test, which included agreed nonenergy benefits, and would not be restricted by rate class associated with the meter(s) for the facility to the greatest extent possible. The program was structured to ensure that participants were provided with a “whole building”, fully integrated offering targeting both gas and electric end uses. While on-site, all opportunities, regardless of fuel source, would be identified and documented for the customer. All efforts to deliver a fully integrated offer to a participant would be performed in a manner that will result in a seamless participant experience. Based on the outcome of the screening process, the appropriate technical resources were assigned to conduct a whole building (fuel blind) assessment. The audit firms used for the market rate program also served the low-income sector, along with the current Network agencies who served the low-income multifamily market. If the same firms were not available, the auditor(s) performing the services were required to have, at a minimum, the same qualifications (i.e. training, certification, etc.) as the market rate program auditors. The LEAN Lead Vendor would attempt, through the screening process, to identify all resources required for the assessment; however, there could be instances where additional expertise was required and therefore more than one site visit was necessary. Technical assessments, benchmarking, and engineering studies would be conducted as needed. At the time of the assessment, education would be provided to participants and instant saving measures would be installed, as appropriate and authorized by the customer. Delivery Methods Low-Income 1 – 4 Unit Program The Low-Income 1 – 4 Unit Program piggybacked on the current DHCD low-income energy efficiency program. Once customers were deemed eligible, they received an in-home energy assessment from their local Network agency. The Network agency then arranged for weatherization and other services to be installed by a qualified contractor. This program achieved deeper savings by installing additional efficiency measures, to the extent costeffective, such as indirect water heaters with heating systems, exterior doors, front load clothes washers and repairs to make efficiency measures possible. Other measures were investigated, such as solar water heaters and usage monitoring systems. In addition, a change in rules as a result of the American Recovery and Reinvestment Act (“ARRA”) made it possible to spend more federal money in each home, and this provided Program Administrators with funding to help address more items on the cost effective priority list for each customer. Savings were distributed more broadly by treating additional homes, 23 including mobile homes (including providing contractor training if needed). As a final step, the Network agency completed a final quality assurance inspection to ensure that all work is performed to program guidelines. Low-Income Multifamily Program Assessments: The program conducted building assessments by qualified auditors to determine cost effective energy efficiency work and to provide owners information on recommended energy efficiency upgrades. In most cases the assessments were comprehensive audits that examined the building envelope, mechanical systems and motors, ventilation, lighting, etc. The identified efficiency opportunities were then screened through the utility cost effectiveness test, leading to a prioritized list of project specifications. Where opportunities existed to combine cost effective energy efficiency work with building renovations, the assessments were more limited in scope. Contractors: The Program used vendors that were already established in the 1-4 unit Program or through contracts with the Program Administrators as much as feasible. This system allowed the Program to minimize the administrative costs of bidding and selecting contractors, while at the simultaneously ensuring market rate pricing. Prior to work commencing, the contractor and a Program representative visted the site to determine the best approach and feasibility for the work. An applicant’s preferred contractor could be used if the contractor met all program insurance and licensing requirements. Contractors already selected by an Applicant, such as when the prescriptive measure was part of a custom project and the project had been independently bid out by the Applicant, could be used as long as their pricing met the Program’s cost-effectiveness test. Inspections: After the specified work was completed by the assigned contractor, all work was inspected by the Program. Funding Sources and Expenditures Program funds provided by Program Administrators came out of the approved energy efficiency budgets. These budgets were funded by utility bill surcharges for energy efficiency and with other funds that the State decided to apply to these programs. The following funds were paid as reported by the PAs in 2011: 24 Participant Incentives Low-Income Single Family Retrofit Low-Income MultiFamily Retrofit $1,567,195 $7,387,759 $3,003,570 $324,261 $1,538,845 $13,821,631 $114,855 $2,458,826 $4,152,244 $75,641 $177,657 $6,979,224 $85,728 $1,029,895 $4,882,131 $112,806 $1,472,048 $76,815 $7,659,424 $21,481,055 $120,621 $165,500 $3,337,004 $72,671 $2,114,488 $189,601 $5,999,885 $12,979,109 Electric Utilities Cape Light Compact National Grid (electric) NSTAR (electric) Unitil (electric) Western Mass Electric Electric Sub-Total Natural Gas Utilities Berkshire Gas Columbia Gas National Grid (gas) New England Gas NSTAR (gas) Unitil (gas) Natural Gas Sub-Total TOTAL These incentives for Low Income participants are summarized in column 1 of the following table. In addition to incentives, the PAs also incurred other program expenses, as shown in column 2, for total PA expenditures in column 3. In addition to Participant Incentives, the other categories of PA costs13 are: Program Planning and Administration Marketing and Advertising Sales, Technical Assistance (including Home Energy Assessments) & Training Evaluation and Market Research. The table also includes in Column 4 funds deployed by state and federal agencies, including stimulus funds, and expended in 2011. Most of these government funds were invested in the Low Income program for 1-4 family buildings. There were no co-pays required from low-income customers. 13 As explained elsewhere, the employees of the PAs are included in the estimates of FTE for the Low Income programs, but not for other programs. Employees of PA contractors are included in this report for Lead Vendors and other implementation contractors, but not for other contractors (e.g., marketing, evaluation). 25 1 2 3 4 5 Incentives to Customers Other PA Expenses Total PA Program Costs Government Total Low Income Programs: 1-4 Unit $ Multifamily Subtotal, Low Income $ 21,481,055 $ 8,710,960 $ 30,192,015 $ 12,979,109 4,195,626 17,174,735 34,460,164 $ 12,906,586 $ 47,366,750 $ 44,705,535 $ 44,705,535 $ 74,897,550 17,174,735 92,072,285 B. Methodologies for Assessing Direct Employment This section describes the methodology for our analysis of the number of full-time equivalent workers associated with the delivery of Low Income Residential Retrofit Programs in 2011. The methodology included the following steps: Step 1: Identify measure categories. Each of the two low-income programs, covering 14 unit buildings, and multifamily buildings, has several sub-categories of expenditures, mostly associated with different efficiency measures. Through interviews with lowincome program managers, 15 activity or measure types were selected for both the gas and electric end uses in 1-4 unit and multifamily building types. 1-4 Unit Buildings Multifamily Buildings 14 Insulation and Air Sealing Heating System Replacement HVAC Repair HVAC Clean, Tune, and Evaluate (CTE) Refrigerators Lamp replacements AMP Audits Oversight14 Electric Audits HVAC Shell Lamp replacements Fixture/Lamp replacements Refrigerators This Oversight category includes an estimate of employment at the PAs and state agencies. This category of employment was estimated for the low income programs, but not for the other programs, due to the nature of the joint oversight of the low-income programs, and based on the availability of appropriate data inputs. 26 Oversight. Step 2: Tabulate expenditures for each measure type. Figures on actual 2011 expenditures15 were used to determine the breakdown between gas and electric, and between 1-4 unit and multifamily building (MFB) units. Further detailed allocations to the full 15 activity or measure types (sector groups) were based on comprehensive 2011 expenditure reports from NSTAR Gas and Electric/ABCD, partial expenditure allocation reports from NGRID/Action, and estimates based on the other utility companies’ respective shares of the statewide totals. Step 3: Determine delivered unit costs. The calculation of costs per unit differed for the following categories: Insulation and Air Sealing: ABCD and Action weatherization costs (roughly 80% of the statewide total) were used to develop a statewide cost per unit for insulation and air sealing. It was assumed that this factor would not appreciably differ whether in 1-4 unit or MFB buildings. This resulting factor was applied across the entire 2011 Insulation and Air Sealing expenditures. HVAC work (replacement; repairs; and, clean/tune/evaluate): Based on review of ABCD, Action, and DHCD 2011 information, and in depth interview with ABCD Program Manager. Refrigerators: Based on ABCD information. Lamps and fixtures: Information reported by major installer of actual installations delivered to ABCD over a three month period in 2012. The data covered 55 measures installed during this period. This sample period is assumed to be typical for the electrical MFB work statewide. Step 4: Determine quantity of units installed in 2011: The number of units of each measure type is calculated by dividing 2011 expenditures by the unit cost. Step 5: Determine “time-to-install” FTE productivity factors: For each measure type, productivity is expressed as the average number of measures installed in a year by one FTE employee: 15 Insulation and Air Sealing: Actual 2011 material and labor expenditures for ARRA funded work reported to DHCD were divided by the estimated average Weatherization project cost reported by ABCD and Action. The ARRA reports included how many FTEs were employed to expend this amount of money. It was assumed that this resulting productivity factor would not appreciably differ whether in 1-4 unit or MFB buildings. This resulting factor was applied across the entire 2011 Insulation and Air Sealing expenditures for both 1-4 and MFB buildings. These cost figures were based on the spreadsheets submitted to the EEAC by the PAs, including a sheet entitled “Electric Summary Comparison Table: Quarterly and Year to Date Preliminary Results, Program Year 2011.” 27 HVAC work (replacement; repairs; and, clean/tune/evaluate): Based on author’s experience managing heating system programs for 4 years, with January 2012 confirmation interviews with two high producing HVAC firms, and comparison with R.S. Means research. Refrigerators: Based on interview with statewide operator of low-income refrigerator program. Lamps and fixtures: Based on report from major installer of electrical measures delivered to ABCD over three month period in 2012. The report covers 55 measures installed during this period. This work sample is assumed to be typical for the electrical MFB work statewide. Step 6: Calculate FTE for each measure type. To calculate the level of employment involved for each measure type, the quantity of units is divided by the respective FTE productivity factor. The product is the number of FTE generated by a given expenditure for a measure type. For example, the number of MFB lighting fixture units installed is 13,058, and the installer productivity factor is 1,540 units per year, so the total FTE in this case was 13,058/1540, or 8 FTEs. For back office, administrative and management functions, we assumed that contractor administrative staff can support 8 field workers. All of the workforce needs are counted in “full time equivalents” (FTEs). Each FTE represents the equivalent of one person working full-time in the job category. Readers should understand that the number of FTEs in any category is not the same as the number of individual people employed. Since many people work part-time, by assignment only, or on job activities that are not related to residential energy efficiency, the number of people employed is actually larger than the number of FTEs. We did not estimate how many individual full-time and part-time workers are employed, as opposed to how many FTEs are required. C. Low Income Residential Study Findings Almost 775 full-time equivalent workers were associated with the delivery of Low Income Residential Retrofit programs in 2011. This number includes employees of the Program Administrators, DOER, and low Income consultants, who planned, managed, supported, and evaluated these programs. The greatest number of these workers was engaged in insulating and air sealing 1 – 4 unit buildings, with 266 FTE installers in the field statewide, along with other labor categories. The following table summarizes our results.16 16 For this tabulation, we have combined measure types so there is just one category for HVAC and one for lighting. We have combined managers and administrative assistants into a single category for office workers. 28 Auditors Field Installers Office (Agencies, PAs, DOER, and LEAN) 25 25 266 80 16 11 13 25 32 9 7 5 FTE in Low-Income Programs 1-4 Unit Employees: Insulation and Air Sealing HVAC Refrigerators Lamp replacements AMP Audits Other/overlap Oversight and Adm Subtotal, 1-4 Unit Multifamily Employees: Shell HVAC Refrigerators Fixture/Lamp replacements Other/overlap Oversight and Adm Subtotal, Multifamily Total, Low Income Office (Contractors) Total FTE 33 10 23 71 50 387 149 66 4 22 14 4 19 1 4 54 652 8 61 23 25 48 8 121 447 197 74 773 29 V. Commercial and Industrial EE Programs (Direct Install and Large Retrofit Programs) A. Program Overviews General Descriptions The Commercial and Industrial (“C&I”) energy efficiency programs offered today by Massachusetts Program Administrators (“PA”) are the latest generation of a series of offerings by electric and gas utilities in the Commonwealth that have been evolving since formal energy conservation and demand side management programs were launched in the 1980s. Within the context of the current three year plans, these electric and gas utility programs are integrated and defined by the size of the customer electric accounts and whether the energy conservation measures (“ECMs”) installed are classified as either “prescriptive” or “custom”. Prescriptive measures are pre-approved for installation as replacements for specific existing technology based on cost effectiveness tests completed by the program administrators. Custom measures require additional analysis to confirm project cost and determine the energy reductions generated and incentives that can be provided. Our analysis of direct employment in 2011 from utility energy efficiency programs that targeted C&I customers focuses on two of these programs: the Direct Install Program and the Retrofit Program for Existing Buildings. These are both “but for” programs. This means that the availability of utility incentives and related support likely accelerated the installation of more efficient equipment and systems to replace older, less efficient equipment and systems that otherwise would have remained in service. Both of these programs are described in detail below. With the permission and agreement of the PA representatives and the Energy Efficiency Advisory Council consultant representative, this study does not examine the new construction program (described in the utility three year plans as the Lost Opportunity Program). It was decided that energy system replacements supported by the Lost Opportunities Program are an integral part of building renovations or new construction that would occur anyway; in these cases, utility incentives influence which equipment is selected (i.e., incrementally more energy efficient products), but do not substantively increase the labor associated with installations. Therefore, we agreed collectively that including the work hours engaged in Lost Opportunity Program projects in our total count of direct employment from C&I programs is not appropriate, though we recognize that there was some technical support provided by the PAs (e.g for building simulations) that are not being captured in the total. 30 Direct Install Program The Direct Install Program (“DI Program”) targeted customers with an electric demand of 300 kW or less. Total customers participating in this program in 2011 numbered 5,670 electric customers and 1346 natural gas customers. This set of customers included the smallest businesses on the low end and larger commercial establishments or even elementary schools on the high end, though customers in this group are defined not by their physical size, but by the amount of electrical energy the equipment and systems they employ are consuming at a given time. In this sense, 300 kW customers are quite large. Program offerings were largely prescriptive and included both electrical ECMs and natural gas ECMs. The Program goal was to give these customers easy access to installation of these pre-approved measures at controlled prices and to provide financial incentives to encourage customers to proceed with installations. In some cases, PAs also offered on-bill financing for the customer share of the installation as an additional incentive to participate. To describe the Direct Install Program as it existed in 2011, we quote from the DI Program description that begins on page 255 of the Three Year Plan for 2010-12, dated October 29, 2009: The primary objective of the C&I Direct Install Program is to provide cost-effective, comprehensive electric and gas retrofit services to business customers on a turnkey basis using the same delivery model throughout the Commonwealth. Some Program Administrators offer on and/or off-bill financing options to help customers finance their share of the cost of installing improvements. Program Administrators offer incentives ranging from 35% to 80%. With the direct install model, Program Administrators solicit competitive bids for the labor and materials costs of installing improved lighting equipment, lighting controls and, in some cases, improved refrigeration measures for walk-in coolers. Through a turnkey process, a single contractor conducts an audit to identify better lighting options and installs recommended measures. These vendors market the program, perform audits at customers‘ facilities, offer recommendations to customers, complete audit forms and questionnaires, purchase lighting materials from a supplier also selected through a competitive bid process, install measures, input data into a database, and prepare progress reports for the Program Administrators on a regular basis. The program is primarily marketed by the direct installation contractors directly to the customers on lists of eligible customers provided to them by the Program Administrators. Contractors use direct mailings and telemarketing, as well as specialized targeted efforts for hard-to-reach market segments, such as customers in economic development zones and ethnic neighborhoods, and outreach through 31 neighborhood business associations. Trade allies, industry stakeholders, suppliers and company field personnel also inform customers about the program‘s benefits and incentive mechanisms. In addition, small business customers with high-bill complaints may be referred to the program as a way for them to reduce their electric and gas usage. Targeted electrical end uses include, but are not limited to: lighting and lighting controls, HVAC equipment, water heating, VSDs and refrigeration. A variety of other electric end uses may be served through a custom approach. Targeted gas end uses may include, but not be limited to: heating system controls, commercial dishwashing - water heating and potentially building envelope. Recommended electric technologies include energy-efficient fluorescent ballasts, lamps, and fixtures; hard- wired and screw-in compact fluorescent systems; high intensity discharge systems; LED lighting and occupancy sensors; energy management systems; and refrigeration measures such as evaporator fan controls, efficient evaporator fan motors, automatic door closers and door heater control devices for walk-in coolers. To create greater depth and appeal for the program, customers are offered the opportunity to install non-prescriptive lighting and other comprehensive energy efficiency measures through the custom approach. Recommended gas technologies include programmable thermostats, pre rinse spray valves, pipe insulation, and potentially some weatherization and infiltration measures. Other identified gas measures may be served through a custom approach to include EMS and Hood controls. Measures installed were more likely to be electricity saving, given the profile of energy use in commercial buildings, and included lighting upgrades, refrigeration improvements, simple controls, and drives. For natural gas customers, measures installed could include pipe insulation, devices that reduce use of hot water, and programmable thermostats. We observed that, for our purposes of calculating work hours and total direct employment for the Direct Install Program, the labor required for both natural gas and electricity measure installations is relatively straightforward and predictable. The importance of this will become apparent in the C&I study methodology described below. Retrofit Program for Existing Buildings (Large Retrofit Program) The Retrofit Program for Existing Buildings (“Large Program”) targeted larger customers with electric demand that exceeds 300 kW. In 2011, 2038 electric customers and 2166 natural gas customers participated in this Program. These customers could receive the same prescriptive measures through this program as were installed through the DI program, though the incentives provided were lower. The Large Program also supported a wide array of custom projects for both natural gas and electrical savings. 32 Each of these custom projects had to be evaluated to ensure that, the installation would result in sufficient energy reduction and system benefit to justify receiving a utility incentive for the installation. The Three Year Plan for 2010 – 2012 describes this program, beginning on page 231, as follows: This program focus[es] on comprehensive gas and electric energy efficiency opportunities associated with mechanical, electrical, and thermal systems in existing commercial, industrial, governmental and institutional buildings. It provides technical assistance and incentives to encourage retrofitting of equipment that continues to function, but is outdated and inefficient, and can be replaced with a premium efficient product. The program provides technical assistance (to identify and quantify opportunities) and financial incentives based on a percentage of project costs (both material and labor) to make equipment removal and replacement attractive to building and business owners in terms of conventional business payback requirements. Electric Program Administrators will harmonize their retrofit offerings into a consistent core set statewide of prescriptive and custom offerings, incentives, and supportive services. Gas Program Administrators will similarly organize their programs into prescriptive and custom offerings and align them into a consistent set of services and incentives. All gas and electric retrofit programs will be organized under a single program name, using application forms and other program materials that are the same, except for information pertaining to the individual Program Administrator brand identifiers, contact information, etc. Financial incentives cover a portion of the total installed project costs, typically by providing up to 50% of labor and equipment costs, or by incentivizing the installed costs down to the equivalent of a fixed payback period. Financial incentives may also include co-funded engineering and commissioning studies and/or design incentives covering a portion of incremental architectural and design costs for efficiency improvements. Program Administrator staff, trade allies and project administrators perform most sales, marketing, program administration, and implementation functions. In addition, outside contractors are retained for technical review of applications, onsite energy analysis, technical and design assistance for comprehensive projects, project commissioning services, and the actual measure installations, including turnkey services. The [Technical] Services component of the program provides technical support matched to the specific needs and capabilities of each commercial or industrial customer. Services may include walk-through audits, detailed energy-efficiency studies for buildings or building components, and specialized technical studies, such 33 as studies of industrial process improvements and compressed air projects. In general, study proposals will be assigned to, and performed by, TA consultants who have been selected as preferred vendors through a competitive procurement process by the Program Administrators. TA consultants will be assigned based on an assessment of their expertise with the technology area under consideration. Targeted end uses include, but are not limited to, lighting and lighting controls, motors and drives, HVAC equipment, energy management systems, compressed air and unique industrial processes. Gas end uses include: building envelope and glazing, commercially sized heating and water heating equipment, system and building controls. Any commercially available energy efficiency technology may be considered through a custom application. Fully integrated and comprehensive gas and electric approaches will be taken to ensure the capture of all cost-effective achievable technical potential. Recommended technologies include efficient lamp technologies, efficient lighting fixtures, lighting controls, efficient motor drive systems, efficient HVAC systems, CHP, compressed air systems, heat recovery, steam systems, industrial process systems and controls, building controls, demand controlled ventilation, Energy Recovery Ventilation Units (―ERVs), advanced gas technologies, dehumidification and humidification. Solar hot water, advanced cooling systems and other emerging technologies may also be addressed. In the context of this integrated electricity and natural gas efficiency program, some individual custom measures resulted in both natural gas and electrical savings. In general, the incentives provided by the Large Program made the difference in whether projects proceed or not. Delivery Methods Direct Install Program Delivery method details varied somewhat from utility to utility for the DI Program in 2011. NSTAR Gas and Electric, National Grid, and Cape Light Compact selected a small number of delivery companies through a competitive process that establishes unit costs for each of the prescriptive measures installed. These designated delivery companies provided maximum available incentives to customers for installation of measures and complete the bulk of all the installations in this market sector. In same cases, these delivery companies were awarded geographical territories to serve. The NSTAR Gas and Electric DI Program contracted with AECOM Energy, Northern Energy Services, Prism Consulting, Inc., Rise Engineering, and TNT Energy, LLC. National Resource Management, which specializes in refrigeration system controls, was also one of the NSTAR Gas and Electric installation companies. 34 National Grid used AECOM, Northern Energy Services, and Prism Consulting, Inc. Again, National Resource Management provided refrigeration controls. Cape Light Compact selected Rise Engineering for DI Program delivery. WMECO and Unitil had more open programs, allowing a larger number of delivery companies to participate in the DI Program and serve their customers. As noted earlier, measures installed under the DI program were prescriptive. Program activity was driven by the electrical measures installed, with a smaller number of prescriptive gas measures being bundled in on the margin, though based on our conversations with the direct installation companies, installation of gas measures has been increasing. Large portions of the workforce employed by the direct installation companies that participated in the DI Programs, and likely many of the companies themselves, would probably not exist without these utility programs. As noted earlier, these companies provided turn-key services, serving as the sales force for the PAs to this market sector, having responsibility for identifying prospects, specifying projects, calculating savings to ensure that ECMs will pass a cost effectiveness test, calculating incentives to be provided, determining net cost to the customer, closing the deal, and tracking the project through its completion. Most of these companies did not employ installation labor. They subcontracted field installation work to individuals or companies with the necessary trade licenses (generally electrical). They were paid for each measure installed based on per unit fees bid to the PAs and covered all their internal costs for administration, sales, and project management based on the difference between what they pay to have field installations completed and what they are paid themselves. Profit was achieved in this program by working efficiently and by beating the bid cost for labor in the unit pricing. The result of this approach was that the faster that field labor could complete installations at acceptable quality, the higher the margin that could be achieved. Viewed another way, this cost structure increases the amount of work completed (i.e. productivity) for every labor dollar spent, thereby resulting in fewer labor hours needed to install program ECMs than would be the case if labor costs were paid on an hourly basis. Retrofit Program for Existing Buildings For the most part, as noted above, the Large Program was an open, market-based program for both electric and gas utility customers. There were no program restrictions on who did the installation work, though all work was required to meet performance standards established by the program administrators. There were over 250 separate Contractors of Record for National Grid’s Large Program electric customer installations in 2011. See Appendix A for a listing of contractors participating in this Program. NSTAR Gas and Electric’s Large Program electric customer 35 database also identifies nearly 250 companies as the installation vendors for the program. See Appendix B for a listing of contractors participating in this Program. National Grid’s natural gas customer program identified some 80 different companies as the Vendor for 189 projects. See Appendix C for a listing of these contractors. The Contractors of Record identified by the PAs were a combination of building owners, specialized technology contractors, energy services companies, and the firms that delivered the Direct Install programs. Some installed these measures themselves and others subcontracted the installations to other contractors and vendors. What they had in common is that these installed projects were being driven by incentive funds. National Grid also selected a set of companies it called “Project Expediters” or “PEX” that functioned in a similar manner to the designated installation companies in the DI Program (and in fact, many of these same companies were involved as PEX). These PEX tended to focus on the same measures installed through the DI Program (i.e. largely lighting), though the lighting solutions they developed could be more customized to meet the needs and interests of a customer. They also served as a general contractor where there were additional energy efficiency opportunities. Where a large customer requested assistance with developing measures, National Grid could provide the list of qualified PEX or even provide a referral to an individual company. And in addition, with their designation as an official Project Expediter, these companies could direct market themselves to utility customers. See Appendix D for a list of National Grid Project Expediters. In addition to installation companies, there was another workforce of engineers and technical specialists directly under contract to the electric and natural gas PAs that provided technical assistance to customers. As described earlier in discussion of Program services, these companies provided a range of technical support, at the whole building or building system level, to help identify potential projects and quantify savings that would result. In this way, they supported the program marketing effort. These companies were also used to confirm that projects installed were performing as designed. For example, the National Grid natural gas company’s Large Program completed 786 such studies in 2011, most of which were quite small, but collectively cost $359,000. Categories and counts for this work were: energy assessments, 288; custom review, 215; post inspections, 101; custom audit, 86; TA study, 59; and special consultations, 59. A partial list of companies that provided technical assistance services to PAs is attached as Appendix E. Funding Sources and Expenditures Both C&I programs were funded by a combination of utility incentives and customer share payments. In the Direct Install program, measures installed and the incentives provided were treated either as electric or natural gas. 36 For the Large Program, some installed measures received both an electric utility incentive and a gas utility incentive if there were both electricity and natural gas savings associated with the installation; but this combined incentive was typically capped at 50% of the project cost. Technical services could likewise be cost shared by electric and gas utilities depending on whether the source of savings was electric or gas, with the customer also providing a share of the cost (which was forgiven if the customer proceeded with an installation as a result of the recommendations). Program funds provided by program administrators for the DI and Large Program come out of the approved Commercial and Industrial energy efficiency budgets. These budgets are funded by utility bill surcharges for energy efficiency and with other funds that the State decides to apply to these programs. 2011 C&I Program Participant Incentives Provided by Program Administrators17 Program Administrators Electric Utilities Direct Install Program Cape Light Compact National Grid (electric) NSTAR (electric) Unitil (electric) Western Mass Electric Electric Sub-Total Large Retrofit Program Total $ $ $ $ $ $ 2,280,710 10,502,333 16,104,911 1,062,798 3,825,993 33,776,745 $ $ $ $ $ $ 436,193 27,287,022 17,996,187 852,073 2,579,159 49,150,634 $ 2,716,903 $ 37,789,355 $ 34,101,098 $ 1,914,871 $ 6,405,152 $ 82,927,379 $ $ $ $ $ $ $ 1,571 29,209 146,563 82,035 3,850 263,228 $ $ $ $ $ $ $ 100,791 1,412,901 5,482,829 113,435 919,093 113,867 8,142,916 $ $ $ $ $ $ $ Natural Gas Utilities Berkshire Gas Columbia Gas National Grid (gas) New England Gas NSTAR (gas) Unitil (gas) Natural Gas Sub-Total TOTAL $ 34,039,973 17 102,362 1,442,110 5,629,392 113,435 1,001,128 117,717 8,406,144 $ 57,293,550 $ 91,333,523 Source: 2011 Statewide EEAC Reports for Electric and Gas, Q4-11, Report B 37 Total Investment in Installed Measures by PAs and Customers in 201118 Incentives to Customers for Projects Customer Share of Project Cost Direct Install $ 34,039,973 $ 14,588,560 $ Large Retrofit $ 57,293,550 $ 85,940,325 $ 143,233,875 $ 91,333,523 $ 100,528,885 $ 191,862,408 Total Commercial and Industrial Programs: 48,628,533 B. Methodologies for Assessing Direct Employment Our analysis of Direct Employment from the DI and Large Programs has relied primarily on sets of information requested and received from the utility program administrators. While we knew that the PAs focus primarily in their record keeping on energy savings that result from investments they are making through incentives and other services provided, we learned through a series of meetings and discussions with selected PA staff that the larger PAs also tracked the individual measures installed, by Program and, sometimes, by vendor. Securing this detailed information was essential to our study. We asked PAs to provide data sets listing specific equipment installed in 2011, with counts, for each of the Programs for each PA. Information the PAs provided in some cases also identified participating vendors, the specific projects and measures each installed, whether measures were prescriptive or custom, and the total dollars spent on projects including both utility incentives and customer share. To supplement this primary data source, we spoke with selected installation companies and engineering firms participating in the Programs and with selected utility company managers deeply involved in the C&I programs. The information gleaned from these conversations was essential to our understanding of how the Programs operate and who is doing the work. Together, these sources provided details on what was installed through the Programs, how much field time is usually required to complete different types of installation projects, and what the “back office” labor component is for specialized installation companies that service large numbers of utility customers. Direct Install Program (electric) With permission and agreement from the supervising PAs of this study, we used NSTAR Electric’s Direct Install Program results for 2011 as our initial data set. We were subsequently directed by NSTAR Gas and Electric to RISE Engineering, one of the active 18 Customer Share assumes 30% for Direct Install program and average of 60% for Large Retrofit program 38 Direct Install installation companies and the only one that employs its own electricians to install ECMs, for assistance with estimating the time required to install different measures. Our researchers worked from the assumption that if we could use the NSTAR Gas and Electric DI Program data set and our conversations with RISE Engineering to arrive at a typical “time-to-install” (or productivity factor) for the many measures installed through in the DI Program, we could extrapolate these times to the measures installed by all PAs and calculate the total work hours involved for the entire DI Program in 2011. This process is described in more detail below. The NSTAR Gas and Electric DI Program tracks almost 50 electricity saving measures that were installed through the program, some of them each being an amalgamation of multiple sizes and types of equipment. A list of these measures is provided below. While the great majority of the installed measures were lighting retrofits of one sort or another, the time required to remove existing lighting and install replacement equipment could vary significantly with the location of the lighting and the type of equipment being installed. Similarly, while some lighting controls (occupancy sensors) were installed where no such switching previously existed (e.g. in ceilings), requiring new wiring, other wallmounted controls replaced existing manual switches and did not need to be wired. This “time-to-install” information was applied to the list and count of installed measures to calculate the number of “installation man days” devoted to installing each measure for all participating NSTAR Electric customers in 2011. Our next step was to apply our NSTAR Gas and Electric calculation methodology to the DI Program results received from the other PAs. Because all the DI Programs of the PAs are harmonized under the current three-year plan and the profiles of businesses participating in the Programs were likely to be the same, we could assume that similar measures had been installed by all DI Programs. Where this was the case and the installed measures could be matched with the NSTAR Gas and Electric measure lists, we could easily calculate the installation man-days. In cases where the level of detail in installation descriptions provided by some PAs was less “granular” than what was received from NSTAR Gas and Electric, we had to assign installations to one measure category or another. In other cases, where the data was more granular than the NSTAR Gas and Electric data, we made some assumptions and aggregated data within single measures. When we found that the data received from National Grid did not align well with the NSTAR Gas and Electric measure descriptions, National Grid suggested that we engage Munro Distributing, a major supplier of program materials to PAs across Massachusetts, to help match the installed products with the NSTAR Gas and Electric measure descriptions. With their assistance, we were able to closely correlate these two sources. At the end of this process we were able to apply our “time-to-install” information to nearly all of the reported electric DI Program measures. 39 NSTAR Gas and Electric Direct Install Program Measures with Counts of Measures Installed in 2011 PRODUCT MEASURE ID 10 21 22 23 25 31 32 34 41 43 51 52 54 55 56 57 61 63 64 70 80 83 85 10A 30A 30B 30C 41A 64A 81A 81B 82A 82B BEVG EMSB LGHT LGTC MOTR REFC REFG SNCK SPRAY_VALVE T-STAT T-STAT-HP TUNE VSDH PRODUCT DESCRIPTION Re-lamp/Re-ballast with HP/RW T-8 or T-5 Lamp/Ballast Systems Compact Fluorescent Fixture - Hard Wired (Long Tube CFL and Biax are Eligible) Compact Fluorescent Fixture with 2 (or more) Lamps Dimmable Compact Fluorescent Fixture (Long Tube CFL and Biax are Eligible) CFL lamp only LED Exit Sign High Efficiency 3 Lamp Fluorescent Fixtures - 2X4 High Efficiency Recessed Fluorescent 2 Lamp Retrofit Kits - 2X2 or 2X4 Advanced Recessed Fluorescent Fixtures - 2X4, 1X4, or 2X2 Industrial / Commercial Fluorescent - 4 ft. and 8 ft. Fixtures Vapor Tight Fluorescent - 4 ft. and 8 ft. Fixtures Pulse Start Metal Halide Lamp and Electronic Ballast Kit Pulse Start Metal Halide Fixture with Electronic Ballast (eHID) High Lumen Vaportight Fluorescent Fixture High Pressure Sodium Fixture High Intensity Fluorescent Fixture (HIF) less than or equal to 207 Watts High Intensity Fluorescent Fixture (HIF) greater than 207 Watts Remote Mounted Occupancy Sensor Occupancy Controlled Step Dimming System Occupancy Sensor - Wall Mount (FL) Metal Halide Specialty Lighting Hard-Wired Fixture with Electronic Ballast LED Downlight Fixtures - Hard Wired LED Low Bay - Garage and Canopy Fixtures LED Outdoor Wall Packs HP T8/T5 Lamp with Electronic Ballast High Efficiency 2 Lamp Prismatic Lensed Fluorescent Fixtures - 2X2 or 2X4 High Efficiency 2 Lamp Parabolic Fluorescent Fixtures - 2X2 or 2X4 High Efficiency 2 Lamp Recessed Indirect/Direct Fluorescent Fixture - 2X2 or 2X4 4 FT Industrial Fixture with Reflector with HP T8/T5 Wall Mounted Occupancy Sensors Integral LED Directional Replacement Lamps - MR16, PAR16, & PAR20 Integral LED Directional Replacement Lamps - PAR30 & PAR38 LED Cooler or Freezer Case Fixtures - 3' & 4' Fixtures LED Cooler or Freezer Case Fixtures - 5' & 6' Fixtures Refrigerated Beverage Vending Machine EMS & HVAC Controls Lighting Systems (custom) Lighting Controls Motor (under 15 hp) Custom Refrigeration - Controls Retail Refrigeration Non-Refrigerated Snack Vending Machine Spray Valve - Electric Hot Water (SBS Only) Thermostat Single Stage (SBS Only) Thermostat Two Stage for Heat Pump (SBS Only) HVAC Tune-Ups (SBS Only) Variable Speed Drives (HVAC Systems) TOTAL INSTALLED 86,247 2,479 89 206 16,003 2,769 13,570 743 2,784 18,125 324 814 551 759 3 2,211 2,651 5,153 1 3,151 102 2,898 910 358 1,134 3,086 5,991 2,358 350 394 5,082 19,498 29 32 86 81 1,493 46 1,067 214 476 30 17 28 1 44 11 Retrofit Program for Existing Buildings (electric) A significant proportion of the installed measures in the Large Program are the same prescribed measures installed by the DI Program. For the NSTAR Gas and Electric program, the measure tracking made use of the same descriptive categories as the DI Program. That allowed us to use the same methodology to develop “installation man day” totals for many of the Large Program measures installed for PAs. Again, there were differences in the detail of data being captured by some of the PAs, but we were able to calculate labor hours for the 40 prescriptive measures installed for larger utilities that account for most installations statewide. That said, our calculations of labor hours generated by the Large Program is complicated significantly by the large numbers of “custom” projects that were installed through this Program. These custom projects accounted for a significant fraction of the Program dollars spent as incentives and, in some cases, an even larger fraction of the total value of combined utility and customer investment in energy efficiency improvements. For example, in National Grid’s Large Program in 2011 supported the installation of 373 custom projects that received $10,964,402 in incentives or 62% of the incentives National Grid paid out through this program. Utility recordkeeping for custom projects captures descriptions of a project as a general category that perhaps includes some indication of the size of the key piece of equipment and, of course, includes the expected energy savings. It does not capture how anticipated savings were determined and the assumptions behind them. The complexity and variability of such custom projects makes determining the workforce impacts extremely difficult. For example, for the installation of a combined heat and power system, the data provided to us by the utility PAs tells us nothing about existing conditions and what the total scope of the project will include (e.g., Is there demolition, rewiring, repiping, transformers, thermal storage, etc.?). Even the size of system components is unspecified. Lacking such information about individual projects installed for the Program in 2011, our researchers developed estimates for minimum labor requirements to complete jobs in categories that were appropriate to the information provided about installed measures. Bluestone Energy Services, one of the National Grid Project Expediters and a company that has developed technical assistance studies in the past for PAs, was particularly generous with their time in assisting our researchers to understand the labor component of these complex custom measures Bluestone helped extrapolate total project costs for the majority of the custom projects in National Grid’s Large Program and provided estimates of labor breakouts by project for project management, sales, contractor engineering, and, as appropriate, other specialized hours for different technologies. As a final step, where individual PAs were not able to provide the level of detail we needed about measures installed, we relied on their Large Retrofit Program annual incentive expenditure to estimate labor impacts. We compared this expenditure with the relative expenditures by PAs that had provided detailed information and extrapolated the jobs created. We then adjusted job creation totals upward proportionately. Direct Install Program (natural gas) With the integration of electric and natural gas into a single DI Program offering, driven by a customer’s electric utility (unless the natural gas customer is also served by a municipal electric company), we found that the actual labor associated with the relatively few natural 41 gas measures installed for a customer was usually incremental to the time and cost associated with being on the job to install electric measures. Installation companies received unit-based payments for each natural gas measure installed (e.g. a thermostat, pipe insulation, a hot water savings device), but would not be able to justify the sales, contractor supervision, travel, deployment, and data management and invoicing time associated with serving a natural gas customer based on revenue for the natural gas measures installed. It is our understanding that installation companies involved in this Program do not have any meaningful additional incremental office or sales-related labor associated with the installation of gas measures. The natural gas utilities (Berkshire Gas, Columbia Gas, NSTAR Gas and Electric, National Grid, New England Gas, and Unitil) were asked to provide lists of measures installed for their customers on their behalf with quantities and other details, as had been requested from electric utilities. Information was received from all utilities except one. Information systems for tracking natural gas installations are, we found, much more variable utility to utility than is the case for the tracking of electric measures by electric utilities. Nevertheless, because the DI Program natural gas measures have been harmonized, we were able to generate counts of measures that account for most of the natural gas customers served by the Direct Install Program. As with the electric DI Program measures installed, “times-to-install” were calculated for natural gas measures tracked and reported to us. Again, we worked with RISE Engineering to establish these “times-to-install”. And as with the electric measures, installation man-days have been calculated using the RISE estimates. Retrofit Program for Existing Buildings (natural gas) The Large Program for natural gas customers is a market-based program in the same way that the Large Program for electric customers is. There are no designated installation companies. Projects include installed measures that have both electricity and natural gas savings, as well as custom installations (which are any natural gas measures that are not prescriptive) that only save natural gas. Again, for the natural gas Large Programs, as was the case with the electric Large Program, there are some of the same DI Program prescriptive measures installed; but the Large Program installations completed for natural gas customers are predominantly “custom”, meaning that each project must be specified and priced by a contractor and the anticipated energy saved analyzed and approved by the PA to ensure the project is cost effective and to calculate the available incentive. Our methodology for determining workforce impacts in this case was the same as for the other analysis completed for C&I programs. We requested counts of measures installed under this program from all natural gas utilities (Berkshire Gas, Columbia Gas, NSTAR Gas and Electric, National Grid, New England Gas, and Unitil). All but one PA provided information. 42 We analyzed measures installed to aggregate similar installations and simplify our counting, and we tried to identify similarities in measures installed by different PAs to model our calculations. Again, we consulted with individuals knowledgeable about field installation of these measures to help determine “time-to-install” estimates. We then used this information to calculate total labor time required and workforce impacts for installations. We would again like to thank RISE Engineering for their assistance. As the last step of this process we looked at incentive payments by PAs from whom we did not receive measure installation counts and extrapolated FTE for these PAs using relative payments by PAs that did provide measure counts. C. Commercial and Industrial Study Findings Using the methodologies described above, our researchers have developed the following estimates of workforce impacts from the two commercial and industrial programs that were included in this investigation. The combined workforce impact for these commercial and industrial programs totaled at least of 605 full time equivalents (FTEs). In general, we believe that these estimates undercount the total workforce impacts from the programs. For the Direct Install Program which had many installations for the smaller C&I customers, there may have been instances where productivity was reduced below the installation rates cited by our respondents. Servicing smaller customers requires more frequent job set ups and breakdowns and more travel time between installation work, compared to working in large office building or a school. Also, relative productivity can vary different DI program installation contractors. For the Large Program, undercounts are attributable to issues we identified in the methodology section: our difficulties getting complete descriptions and counts of all measures installed, as well as uncertainties about the specific labor needs for the more complex custom measures installed through the Large Program for both electric and natural gas customers. That being said, we believe that the order of magnitude of these findings is accurate. These findings are presented separately below for each of the two programs. Direct Install Program The DI Program had two primary labor components that we have accounted for in this investigation: field work that was for the most part performed by licensed tradespeople, primarily electricians; and back office, sales, and project management functions that were provided by installation companies that were engaged by the PAs. Between these two labor components, we estimate that at least 193 FTEs were employed as a result of the DI Program. a. Field Labor We estimate that the DI Program installations required in a minimum of 103 full time equivalent persons being employed in 2011. These individuals were responsible for installation of both electricity-and natural gas-saving measures. As noted earlier, most of 43 this workforce was subcontractors to the primary installation contractors, though a few of these companies did have their own field workforce. b. Back Office, Sales, and Project Management We interviewed most of the installation companies participating in the DI Program, including nearly all of the largest such companies. We learned that their DI Program staffing functions could be classified into five major categories: supervision; data management and bookkeeping; marketing; energy auditing and sales; and project management, which included subcontractor management, materials management, and construction oversight. Based on these discussions and estimates and allocations provided by the installation companies, we estimate that at least 90 FTEs were employed in 2011 to facilitate DI Program measure installations. Retrofit Program for Existing Buildings As described earlier, the Retrofit Program for Existing Buildings, or “Large Program”, is very much a market-based and market-driven program. The measures installed and receiving program incentives are not necessarily prescribed by program guidelines, though they must meet a program cost effectiveness test. Installed measures are in many cases described as “custom”, meaning that they are situation-specific solutions or technology applications that need to be individually designed, engineered, and fitted. Also, the program allows the open participation of a range of vendors, contractors, manufacturers, etc., requiring only that the work that is done meets required performance standards for energy savings and measure life. We estimate that at least 412 FTEs were employed as a result of the Large Program. a. Field Labor For the full range of natural gas and electric energy conservation measures installed in 2011 as a result of the Large Program and custom applications, our researchers estimate that a minimum of 352.5 FTEs was employed in field installation-related work. Given the complexity of some of these projects, the total workforce employed as a result of this program likely included design professionals and engineers, construction managers and supervisors, sales engineers, electricians, plumbers, heating specialists, controls specialists, software programmers, pipefitters, sheet metal workers, demolition experts, haulers, and other construction workers. We believe that this number underestimates the field labor total because the reported information on many complex, big ticket electric measures lacked sufficient detail to determine the labor required to complete them. We were forced to estimate labor counts using wage rates for professionals and licensed trade persons, without knowing the numbers of lower wage individuals involved in these complex construction projects. b. Back Office, Sales, and Project Management 44 The description provided for this Program mentions the Project Expeditors or “PEX” that National Grid engaged to provide more simplified customer access to installation services and program incentives and create a more focuses sales force for the program. The field services that these PEX offered are accounted for in the field labor totals. But in addition, they also have the same internal workforce structure and functions that characterized the DI Program installations contractors, though at a smaller scale because they are involved in a smaller number of projects, though individual projects may be larger and more complex. We were able to interview the PEX that were responsible for 79% of the projects completed by project Expediters in 2011 under National Grid’s Large Program. They estimated that the workforce supporting National Grid in this program totaled 21 FTEs. Extrapolating this to the full PEX contingent, there would be a total of 26 FTEs. These same companies indicated in interviews with our researchers that they were also active in the NSTAR Gas and Electric Large Program as well. While their role was not formalized in the same way by NSTAR Gas and Electric, we expect that they employed a like number of staff to generate and support work receiving NSTAR Gas and Electric Large Program incentives. Based on this assumption, our researchers estimate that at least 50 FTE back-office, sales, and project management personnel were employed as a result of the Large Program. c. Technical Assistance and Support Both National Grid and NSTAR Gas and Electric have developed networks of Technical Assistance specialists that have supported this Program. These specialists are usually degreed or professional engineers either with a larger engineering firm or from smaller firms or even sole proprietorships. They understand the Program guidelines and requirements and have created canned deliverables that allow them to cost effectively develop studies that serve as marketing instruments for the Program or to provide other technical support, like inspections of completed work. National Grid and NSTAR Gas and Electric reported spending approximately $1,826,000 for such technical support in 2011. Assuming an average rate for engineering services of $100 per hour, we have estimated that 9.5 FTEs were employed providing this technical support for the largest PAs. 45 VI. Profiles of the Energy Efficiency Workforce in Action Residential 1 – 4 Unit Program: Next Step Living, Boston This case study offers a window into the daily work performed by one of Mass Save’s larger residential energy efficiency “Home Performance Contractors” (HPCs). In this profile, you’ll learn about the process “from A to Z”, as described by the staff at Next Step Living of Boston. Individual job titles have been noted in bold italics to give a sense of the full range of job titles involved in just one Mass Save residential assignment. Although some of the positions described here were not part of the program in 2011 (the year analyzed for this direct employment impacts study), the case study will help you see just how many workers touch each Next Step Living residential job. The case study also demonstrates how the Mass Save residential energy efficiency programs can help connect homeowners with renewable energy opportunities like home solar power. When homeowners pursue renewable energy at the residential level, a whole new group of employment impacts (not studied here) can be generated. *************************************************************************** Mrs. “Adamson” stops by the Next Step Living table at the Hyde Park Farmer’s Market on Saturday afternoon, and has a conversation with the Community Outreach Coordinator there, leaving their name and phone number to be contacted for a no-cost home energy assessment. The list of people requesting follow up from the farmers market is entered by an Outreach Analyst, and the Adamsons receive a call from a Customer Service Representative to schedule their home energy assessment. As part of scheduling the home energy assessment, the Customer Service Representative collects the Adamson’s utility account information. This information, along with the date and time of the scheduled visit, is organized by a Home Energy Assessment Logistics Coordinator and submitted to the program coordinator, Conservation Services Group, for approval. A Solar Site Rater analyzes satellite imagery of the Adamsons’ roof in a preliminary screening for solar potential, determining that their roof may have good potential for solar. The Home Energy Advisor arrives at their house and carries out the home energy assessment. As part of the assessment, the Home Energy Advisor verifies the preliminary solar potential, and connects the Adamsons with a Solar Account Manager to schedule an in-depth assessment for low-to-no-cost solar. 46 Mr. Adamson also expresses frustration with high oil bills, and upon inspection of the oil boiler and noticing window air conditioners in several rooms, the Home Energy Advisor recommends they get more information about a high-efficiency heat pump system. The Home Energy Advisor organizes the findings near the end of the assessment, sharing a Home Energy report with the Adamsons that explains the savings potential, incentives, and costs of insulating and air sealing their attic. The advisor also informs the Adamsons that their oil boiler has a slightly elevated carbon monoxide level, and should be serviced before they move forward with their insulation opportunity. After the assessment, the Home Energy Advisor passes the customer’s interest in getting information on heating options along to the HVAC Team Coordinator, and submits the details of the visit to their Energy Assessment Technical Review Coordinator, who reviews it for technical and program incentive accuracy before passing it along to the Tech Review Logistics Analyst who scans and enters all the Mass Save paperwork into the NSL IT system. While Technical Review is occurring, a Weatherization Account Manager contacts the Adamsons to see if they need any assistance setting up a service appointment for their heating system. The heating system service is set for Saturday, and the Account Manager schedules a Combustion Testing Specialist to return early the next week to carry out the necessary followup test to “pass” the heating system. After the heating system passes, the Adamsons receive and sign their contract for weatherization work. Upon signing, a Weatherization Logistics Coordinator contacts the Adamsons to schedule their insulation and air sealing. Once the work is on the schedule, the building permit is pulled by the Permit Coordinator, and the Weatherization Logistics Support Analyst creates the work folder with the scope of work and completion paperwork. The day of the work, the Weatherization Team Leader and two Weatherization Technicians arrive at the home and perform the attic insulation and air sealing. 47 During the work, the Weatherization Field Manager visits the home, and the Safety Manager stops by as well. Upon completion of the project, the Weatherization Logistics Coordinator reviews the paperwork for accuracy, and the Invoicing Coordinator enters the information, issues an invoice to Conservation Services Group, and sends the weatherization bill and explanation of charges to the Adamsons. Following the home energy assessment, a HVAC Account Manager contacts the Adamsons and schedules a HVAC Advisor to provide more information on their heating system options. Upon receiving more information, the Adamsons decide to install mini-split heat pumps to reduce their energy bills, and the HVAC Production Manager schedules the installation with the Adamsons, and performs a post-install quality control visit. Once the install is complete and certified, the Adamsons pay the remaining balance, and the project is complete. In addition to these customer-facing roles, field and team managers, Human Resources, IT, and a variety of other team members make this experience possible for the Adamsons and others. 48 Residential Low Income: Action for Boston Community Development Action for Boston Community Development (ABCD) has a holistic view on energy. The ABCD Energy Department helps low-income customers to pay for the energy through Fuel Assistance, Discount Rates and Arrearage Management. ABCD helps our customers to get the most out of that energy with our conservation programs; NCAP, Weatherization, Heating Systems repair and replacement. Customers are referred to ABCD Energy from many sources; other ABCD programs, utilities, state or local agencies, etc. Once a customer has participated in one program we do our best to have the customer participate in all programs. 75% of all Weatherization customers come to us from the LIHEAP (Fuel Assistance) program. When applying for Fuel Assistance a customer is asked several key demographics. This information is stored in a database at ABCD. A Weatherization Program Administrator (WPA) sorts the data to find customers who have not participated in the program and have a high priority score. These select customers are contacted by the WPA. An appointment is scheduled for a Weatherization Auditor to visit the customer. The Auditor does a complete audit of the home, looking for health & safety issues, weatherization opportunities and testing the heating system for efficiency. The auditor prepares a work order for health & safety issues and weatherization measures which is forwarded to a contractor. The contractor sends a crew (typically a Crew Chief and two Weatherization installers) to install the measures on the Work Order. During the installation of measures the Weatherization Auditor will return to ensure that measures are being properly installed and will deal with any issues that have arisen. When the installation is complete the Contractor will sign the Work Order and return it to the WPA (email or fax) with an invoice. The WPA checks the Work Order and Invoice to ensure that they match and that the Auditor is satisfied with the work. An Auditor will check the job when the contractor states that it is complete to ensure that it is finished to ABCD standards. At that time the customer is given information about all ABCD Energy Programs. The WPA prepares the invoice for approval by the Director of Conservation Services. The invoice is forwarded to Accounts Payable for disbursement. Monthly and annual reports are prepared by ABCD for all funding sources. The remaining 25% of Weatherization customers come from referrals of all sorts. ABCD programs supply most of these additional referrals. These may be people who have participated in a NCAP audit, or someone with a specific problem that needs to be dealt with immediately (an emergency heating system repair as example. Once the customer is contacted by the WPA the process continues regardless of the source of referral. Heating system replacement or repair (HeartWAP) is a similar process to the Weatherization process with key differences. In place of a WPA there is a HeartWAP Program Administrator (HPA). The Weatherization program is a source for finding inefficient or failing/failed heating systems that are then referred to HWAP. The HeartWAP auditor serves a similar role as the Weatherization Auditor, serving as a technical expert as well as project manager. The greatest 49 difference in the two programs is that all heating systems require three bids and approvals from the funding sources. The NCAP program also has an administrative outreach function and sends an Auditor to the home. The Auditor provides an assessment of all major appliances to determine usage. Refrigerators deemed too inefficient can be replaced. Customers are encouraged to turn in second refrigerators and old freezers. This leads to the development of a Savings Plan to reduce electricity usage. Customers also receive compact fluorescent light bulbs and water conservation materials. The NCAP Auditor also acts as referral for the Weatherization and HeartWAP programs. What does the system look like on the ground for a specific residential participant? Barbara is a typical ABCD Energy customer. She is elderly and lives alone in her single family home in the Hyde Park neighborhood of Boston. The Weatherization Program Administrator (WPA) contacted Barbara in March of 2012. An appointment was scheduled for a Weatherization Auditor to visit the customer on April 3rd. The Auditor did a complete audit of the home, looking for health & safety issues, weatherization opportunities and testing the heating system for efficiency. The Work Order for Barbara’s home was extensive, with Attic Insulation (to R38), Wall Insulation and extensive Air Sealing. The Heating System was determined to be old and running below recommended efficiency levels and was referred to the HeartWAP program. The contractor sent a crew (typically a Crew Chief and two Weatherization installers) to install the measures on the Work Order. During the installation of measures the Weatherization Auditor returned to ensure that measures are being properly installed. The contractor suggested adding additional steam pipe insulation, the Auditor agreed and the measure was installed. The Auditor returned to check the job on May 2nd, to ensure that it was finished to ABCD standards. The Contractor signed the Work Order and returned it to the WPA with an invoice on May 4th. The WPA checked the Work Order and Invoice to ensure that they match, with the changes noted above, and that the Auditor was satisfied with the work. At that time the customer was told that her Heating system was to be replaced and she was referred to the NCAP program. The final invoice for the weatherization was $5,170.91. The project was reported in the April 2012 reporting cycle for all funding sources. (DOE & NSTAR Gas). Barbara’s Heating system replacement (HeartWAP) began with a visit from the HeartWAP auditor on April 4th. The HeartWAP auditor serves a similar role as the Weatherization Auditor, acting as a technical expert as well as project manager. It was determined that the system had exceeded its reliable life span and would need replacement. Three qualified contractors were asked to submit bids, on May 3rd the lowest bid that met the specifications was chosen. The new Heating system was installed on May 21st and given a satisfactory final inspection on June 6th. The final invoice for the Heating system was $5,100.00. The project was reported in the May 2012 reporting cycle for all funding sources. (DOE & NSTAR Gas). 50 Barbara had her NCAP audit on June 1, receiving installed compact fluorescent lamps, a TLC kit (which provides energy saving water and maintenance tools). Her appliances were checked and her fridge was found to meet the efficiency criteria! The project was reported in the June 2012 reporting cycle for all funding sources. (NSTAR Electric). 51 Commercial and Industrial Direct Install Program: Rise Engineering This case study offers a window into the daily work performed by one of Mass Save’s larger commercial and industrial energy efficiency contractors. In this profile, you’ll learn about the step-by-step process of serving small businesses “from A to Z”, as described by the staff at RISE Engineering. Some of the job titles and business departments involved have been noted in bold italics to give a sense of the full range of people involved in just one Mass Save commercial and industrial assignment. The major people and business departments involved have also been summarized at the end of the case study. *************************************************************************** As the Small Business Direct Install (SBDI) energy contractor for the Cape Light Compact (CLC), RISE Engineering markets and works with small and medium-sized non-residential energy consumers on Cape Cod and Martha’s Vineyard to help them reduce energy use and costs. The following outline describes the step-by-step process that goes into connecting and working with these program participants. For this case study, we’ve used the example of ongoing projects involving the owner of multiple motor inns on Cape Cod. Over the last 1 ½ years, this small business has been updating facilities with multiple lighting, gas, and VFD pool pump applications to save energy and money. The process is largely the same for many other small businesses in the SBDI program. Step 1: Marketing and Intake The Cape Light Compact utilizes a variety of outreach and marketing vehicles to introduce its services to eligible customers. These are supplemented by marketing efforts at the vendor level. In simplest form, vendor-driven marketing might consist of a direct mail piece, with collateral materials explaining the program offer, as well as a color brochure on all of the Cape Light Compact incentive offerings. The letter also has a pre-paid reply card for customers to fill out and mail in for a free survey. Within 5 to 7 business days of the letter being sent, the RISE marketing staff contacts those non-respondent businesses with a follow up telephone call to confirm receipt of letter, to explain the program, and to solicit the owner or manager’s agreement to proceed with an initial no-cost energy assessment. For those customers who consent, we collect additional data to supplement the customer information provided by the utility company Program Administrator, including confirmation of the contact name, address, phone numbers(s), email address, electric account numbers with usage histories and gas account numbers. A file is created and assigned to a Cape-based Energy Specialist to schedule a convenient time to perform the energy survey for the customer. 52 Step 2: Site visit Upon arrival at the site, our energy specialist sits down with the owner/manager to review the program offering and to collect background information concerning the site and its operation. From there, the Energy Specialist performs a walk-thru survey of the building, collecting information on the existing hours of operation, square footage, lighting equipment and mechanical equipment running on gas, electric and oil. The surveyor often takes photos to backup written notes. Once complete with the data collection phase, the energy specialist schedules a time to come back to the site with a report to review the recommendations and program offering applicable to the site. A typical survey generally takes about an hour. In some instances, we will return to the site with additional resources to look at specific mechanical equipment or other customized opportunities to save energy in a cost-efficient way. Step 3: Data entry and report generation Upon completion of the site visit, our surveyor submits the data collection sheet to the RISE administrative assistant responsible for entering and generating the energy proposals for commonly applied prescribed measures like lighting. The in-house software for these proposals is supplemented by other templates and tools that are used by an energy analyst to perform analysis of other possible measures. These tools document the proposed recommendations, including the total project cost, the applicable incentives and the customer’s share of costs, the estimated annual energy savings, and the payback on the recommendations. Step 4: Return to site to review recommendations and follow up Our Energy Specialist returns to the site at the agreed upon time to review the proposal and seek the customer’s agreement to proceed with recommended investments. Warranties, contracting procedures, timelines, and recycling services involved with the scheduling and installation of the work are discussed in detail. Upon approval and acceptance of the recommendations, s/he confirms who the main contact person is to schedule work, if other than owner, and reviews the terms of contract where both the s/he and the owner sign and date the contract with the owner keeping a copy for their records. If the customer does not elect to authorize installation at the time of initial proposal presentation (and many don’t), the Energy Specialist will establish a process for following up with the customer periodically until final disposition of the proposal is reached. Step 5: Material ordering, permitting, scheduling of trades to perform install Once a signed contract to proceed is obtained, the file and contract goes to a Project Coordinator to assemble the resources necessary to complete the installation and to schedule the work. In some cases, the work may be subbed out on a turnkey basis to a subcontractor who will furnish both the material and the labor required to complete the installation. In other rare cases, the customer may have its own designated distributor or installer (or its own maintenance staff) that it wishes to have utilized for the installation. 53 For the majority of projects, the materials will be procured by RISE from a local distributor, and labor will be provided either by in-house trades staff (electricians, technicians) or by subcontractors who are paid for their labor only. The Project Coordinator works with the RISE warehouse staff and the selected materials distributor to assemble the materials needed for the project. Once all materials are on hand, the customer is contacted to schedule a time for the materials to be delivered to the site. At the same time, the Coordinator is working with either our in-house staff managers or our selected sub-contractors to schedule the project and secure any permits required for the work to be done. Care is taken to minimize disruption to the business while working to maintain a clean and organized working environment. If any issues arise during installation, the Coordinator is responsible of addressing the concerns so that the installation can proceed to completion. Upon completion of and acceptance of the work done, the customers signs a certificate of completion form confirming they are satisfied with the work that was done, and the “as-built” documentation goes back to the Project Coordinator for project close-out and invoicing. All of the old fluorescent lamps and ballasts removed are placed in card boxes and buckets for removal and proper disposal by the licensed recycling company hired by Cape Light Compact under this program. Upon completion of the project our project coordinator contacts the recycling vendor and submits the necessary paperwork on scheduling the pick- up and disposal of this equipment. Step 6: Billing to the CLC and customer Upon completion of the installation, our RISE billing coordinator invoices both the customer and CLC for their share of the costs for the projects. The customer receives the invoice, net 30 days, and we bill the CLC on a monthly basis for the all the projects completed under the program. We also submit payments to the electrical distributor used for purchasing the equipment for these projects. Summary of Personnel Involved in Small Business Direct Install Mass Save assignments Corporate management – achievement of program goals within specified budgets) Business development/marketing and support staff Energy Specialists (usually engineering grads or staff with trades/sales experience) IT staff (database support and development- hardware and software) Project coordinator/project management Installers (electricians, mechanical, building envelope, controls technicians – in-house and subcontractors) Warehouse/distributor resources Office support (data entry, invoicing, follow up) Recycling firm resources 54 VII. Project Manager Contact Information For information about this study, or to request a presentation to discuss the methodology, results and/or potential use of this data in workforce development and training efforts, contact: Kevin Doyle Principal, Green Economy Workforce Development Lead, New England Clean Energy Foundation 125 Summer Street, Suite 1020 Boston, MA 02110 617-500-9996 (office) 617-877-5804 (cell) [email protected] www.cleanenergycouncil.org 55 VIII. Appendices and Attachments A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Q. R. National Grid Electric Large C&I Program Installers of Record………………………….56 NSTAR Electric Large C&I Program Installers of Record……………………………………58 National Grid Natural Gas Large C&I Program Installers of Record…………………..61 National Grid C&I Project Expediters……………………………………………………………….62 C&I Technical Assistance Service Providers (Partial Listing)……………………………..63 Mass Save Participating Independent Installation Contractors (NSTAR Gas and Electric)……………………………………………………………………………………………….…………..64 Mass Save Participating Independent Installation Contractors (National Grid)………………………………………………………………………………………………………………..65 Mass Save Participating Independent Installation Contractors (Columbia Gas)..……………………………………………………………………………………………………………….66 Mass Save Participating Independent Installation Contractors (Cape Light)…….67 Mass Save Participating Independent Installation Contractors (Berkshire Gas)…………………………………………………………………………………………………………………68 Mass Save Participating Independent Installation Contractors (WMECO)………..69 Mass Save Participating Independent Installation Contractors (New England Gas Company)………………………………………………………………………………………………………..70 Mass Save Participating Home Performance Contractors (National Grid)………..71 Mass Save Participating Home Performance Contractors (NSTAR Gas and Electric)……………………………………………………………………………………………………………72 Mass Save Participating Home Performance Contractors (Columbia Gas)……….73 Mass Save Participating Home Performance Contractors (WMECO)………………..74 Low Income Program Assumptions and Calculations……………………………………….75 Residential Program Survey Instrument…………………………………………………………..76 56 Appendix A: NATIONAL GRID ELECTRIC LARGE PROGRAM INSTALLERS OF RECORD A&M COMPRESSED AIR A&M ELECTRICAL INC. ACELA ENERGY GROUP, INC. ACK SMART AECOM AEGENCO AETNA AHM ELECTRIC INC AIR COMPRESSOR ENGINEERING ALLLAIN AND SON AMERESCO, INC AMERICAN DG ENERGY AMERLUX LLC ARMARK COMMUNICATIONS INC. ASACK ELECTRIC COMPANY ATC INC ATLAS COPCO AZTEC ENERGY PARTNERS B2Q ASSOCIATES INC BARBIZON BARRY ELECTRIC BAYNES ELECTRIC BEARING SPECIALTY CO BLUESTONE ENERGY SERVICES, LTD BOISSONNEAULT ELECTRIC BRITESWITCH, LLC BULBS.COM C.A. SENECAL ELECTRICAL SERVICES, INC. CAL SUPPLY CAPITOL LIGHT CARDOSA ELECTRICAL CCMS LIGHTING INC. CKB ELECTRIC CLIMATE HEATING AND COOLING CLS FACILITY SERVICES COASTAL LIGHTING, LLC CO-ENERGY AMERICA INC COMPRESSED AIR TECHNOLOGIES INC COMPRESSOR ENERGY SERVICES CONCORD ELECTRIC SUPPLY CONSTELLATION ENERGY CORPORATE TENANT INTERIORS CRAIG GAJEWSKI CRANNEY COMPANY CROWE ELECTRIC CUSTOM ICE INC. D.R. GUILBEAULT AIR COMPRESSOR, LLC DELTA MECHANICAL HVAC LLC DMH ELECTRIC DR GUILBEAULT AIR COMP E.B. ROTONDI & SONS, INC. E2S ENERGY EFFICIENCY SERVICES, LLC ED ARNIERI ELECTRIC EDI ELECTRIC BY DESIGN ELECTRIC SUPPLY CENTER ELECTRICAL DESIGN & INSTALLATION, INC. ELECTRICAL MAINTENANCE & CONSTRUCTION, INC. EMC, LLC EMCOR SERVICES ENE SYSTEMS, INC. ENERCON INC ENERGY CONSERVATION & SUPPLY INC. ENERGY CONSERVATION INC (ECI) ENERGY MACHINERY, INC. ENERGY MANAGEMENT & CONTROL SERVICES ENERGY MANAGEMENT CONSULTANTS INC ENERGY SOURCE INC ENERGY SYSTEMS DESIGN INC ENGINEERED SYSTEM PRODUCTS ERS ELECTRIC ESCO ENERGY SERVICES COMPANY E-Z TEST POOL SUPPLIES FABRIZIO AND ASSOCIATES INC FACILICO ELECTRICAL CONTRACTING FLOW RITE VALVE SERVICES FMC TECHNOLOGIES, INC FOREVER MECHANICAL FRANK P MCCARTIN CO FRANK ROUNDS CO. FX WHITE GATE CITY ELECTRIC GE AVIATION GENERAL MILLS GETTENS/NESCO GIGLIOTTO ELECTRIC GORDON M SAVERSE GOTTA & LAVALLEE ELECTRIC GREENERU, INC GREENTECH ENERGY SERVICES, INC GRILLO ELECTRIC INC GROOM ENERGY SOLUTIONS GUARDIAN ENERGY MANAGEMENT SOLUTIONS GUSTAVO PRESTON HAMPDEN ZIMMERMAN HANNON ELECTRIC HD SUPPLY SOLUTIONS HOBART ENERGY SERVICES, INC HOLOPHANE 57 HONEYWELL INTERNATIONAL HOPE AIR SYSTEMS, LLC HORIZON LIGHTING & ENERGY SOLUTIONS HOWSE CORP, INC HUNTINGTON CONTROLS INC IANNICIELLO ELECTRIC INC. ICSC ILLUMETEK CORP IMEC INDEPENDANT ELECTRICAL SUPPLY INDUSTRIAL CONTROL SERVICE CORPORATION INDUSTRIAL CONTROLS AND COMMUNICATION INGERSOLL RAND INPHASE POWER, INC INTERSTATE ELECTRIC J&R INDUSTRIAL WIRING JABA ELECTRIC JILLSON'S DAIRY SERVICE, LLC K G COOPER KEENAN ELECTRIC KEVIN MACHADO KLEEBERG MECHANICAL SERVICES LLC L ROGERS ELECTRICAL CONTRACTORS LABONTE ELECTRIC LAGRANT ELECTRIC LAYNE CHRISTENSEN CO LEBLANC ELECTRICAL SERVICE LIDCO ELECTRICAL CONTRACTORS INC LIGHTING RESOURCES USA INC LIGHTING SOLUTIONS, INC. LIME ENERGY LINC MECHANICAL LITEMOR LITTLEFOOT ENERGY CORPORATION LOCHIETTO ELECTRIC LSI INDUSTRIES M.L. SCHMITT INC MAGNITURE SYSTEMS, INC. MAJOR ELECTRIC SUPPLY INC. MARK A WEBB MBR SERVICES LLC MCQUAY SERVICE-BOSTON DISTRICT MEDFORD WELLINGTON SERVICE CO., INC. MILLIPORE MUNROE DISTRIBUTING, INC. NATIONAL ENERGY SOLUTIONS NATIONAL MAINTENANCE CO NATIONAL RESOURCE MANAGEMENT INC NENRG INC NER DATA CORPORATION NESCO NEW ENGLAND ENERGY NEXAMP NEXREV INC. NOBLE CONSERVATION INC NORTHEAST ELECTRICAL DISTRIBUTORS NORTHERN ENERGY SERVICES INC NXEGEN, LLC PHILIPS OPTIMUM PIONEER VALLEY INDUSTRIAL LIGHTING PIPER ELECTRIC POWERHOUSE RETAIL SERVICES PRECISION TECHNOLOGIES PREMIER DAIRY SERVICE LLC PRISM ENERGY SERVICES PRO CONTROLS, INC PROCESS COOLING SYSTEMS RAUL BATTALAS ELECTRIC REGENCY LIGHTING, INC. RENAUD ELECTRIC & COMMUNICATIONS INC RETROCOOL ENERGY INC RICHARD BROTHERS ELECTRIC RICHARD SASS ELECTRIC RINK SERVICES GROUP RISE ENGINEERING ROBERT PRIZIO ELECTRIC ROTH BROS, INC ROTROCOOL ENERGY INC SALDO ELECTRIC SCALES INDUSTRIAL TECH INC SIEMENS INDUSTRY SINGLE SOURCE ENERGY SOLUTIONS SITE CONTROLS LLC SLYVANIA LIGHTING SERVICES SSB REALTY LLC ST GOBAIN CONTAINER STADELMANN ELECTRIC STANDARD ELECTRIC SUMMIT CONSTRUCTION SYNERGY INVESTMENT, INC. THE GUTIERREZ COMPANY TNT ENERGY LLC TRANE ULTRA SERVICES INC. UNITED MECHANICAL USA TECHNOLOGIES VENTILATION CONTROL PRODUCTS VILLA LIGHTING SUPPLY WEBB PUMP WESCO DISTRIBUTION INC WEST MECHANICAL INC WHEELER MECHANICAL SERVICES WST MACHNICAL ZACHARY DUSSEAU 58 Appendix B: NSTAR ELECTRIC LARGE PROGRAM INSTALLERS OF RECORD A & M COMPRESSED AIR PRODUCTS ACELA ENERGY GROUP INC AECOM ENERGY AEGIS ENERGY AETNA CORP. AHA CONSULTING ENGINEERS INC AIR SOLUTION & BALANCING LLC ALLAIN & SON INC. AMERESCO, INC. AMERICAN ENERGY MGT AMERISTAR ENERGY AMERLUX LLC ANDERSON INSULATION ANTHONY INTERNATIONAL ANTHONY VOZELLA INC ATLANTIC ENERGY SOLUTIONS INC ATLAS COPCO AW CHESTERTON AZTEC ENERGY PARTNERS INC BAGNI ELECTRIC BAKER ENGINEERING BARBIZON LIGHT OF NEW ENGLAND BAY STATE AIR BAYNES ELECTRIC SUPPLY BCM CONTROLS CORP BELFONDO BEST LED LIGHTING BETH ESRAEL DEACONESS MEDICAL BISHOP ELECTRIC INC BIZIER ELECTRIC BLANCHARD ELECTRIC BLUESTONE ENERGY SERVICES, LTD BOB PISACRETA BOSTON LIGHT SOURCE BREWSTER WHOLESALE CORPORATION BRITESWITCH LLC BUILDING AUTOMATION SYSTEMS BULBS.COM CAPITOL LIGHT CCMS LIGHTING INC CHAPMAN CONSTRUCTION CIC ENERGY CONSTRUCTION & SUPP COASTAL LIGHTING COMPLETE ENERGY SOLUTIONS CONSTELLATION ENERGY COOLING & HEATING SPECIALISTS, INC COVIELLO ELECTRIC COX ENGINEERING CUSTOM ICE INC CYR ELECTRIC INC D & R ELECTRIC DIXON CONSTRUCTION DMS ELECTRIC DUNAMIS ENERGY CONSULTANTS DYNAMIC ENERGY CONTROLS E2 ENERGY EFFICIENCY SERVICES ECHO EDWARD G SAWYER CO INC ELAINE CONSTRUCTION ELECTRIC SUPPLY CTR ELECTRICAL DYNAMICS INC EMC LLC EMCOR SERVICES NORTHEAST, INC ENERCON, INC ENERGY CONSERVATION & SUPPLY ENERGY CONSERVATION, INC ENERGY MANAGEMENT CONSULTANTS ENERGY SOURCE INC. ENERGYROI FABRIZIO & ASSOCIATES FACILICO ELECTRIC FALITE BROTHERS FIRST ELECTRIC MOTOR SERVICE FMC TECHNOLOGIES FORTIN ELECTRICAL CONTRACTORS FRANK I ROUNDS CO FRED BORGES ELECTRIC INC FRISOLI ELECTRIC INC GALEXC ENERGY CONSERVATION GALLAGHER ELECTRIC GEORGE T. WILKINSON GHILANI ELECTRIC GLYNN ELECTRIC GRANITE CITY ELECTRIC GREEN DOOR GREENERU 59 GROOM ENERGY SOLUTIONS GTW INC GUARDIAN ENERGY MANAGEMENT SOL GUSTAVO PRESTON SERVICE CO GXP AUTOMATION HANKARD ELECTRIC HAWES ELECTRIC COMPANY HAYES PUMP, INC HD SUPPLY HOBART ENERGY SERVICES HORIZON ENERGY SERVICES HORIZON LIGHTING & ENERGY SERV HORIZON SOLUTIONS LLC HUNTINGTON CONTROLS INC HUSSMANN IDEAL ELECTRIC CO INC ILLUMETEK CORP INDEPENDENT ELECTRIC SUPPLY INDUSTRIAL BURNER SYSTEMS INDUSTRIAL CONTROL & COMMUNICATIONS INDUSTRIAL ENERGY SERVICES INC INDUSTRIAL PUMP, INC INGERSOLL RAND CO INNCOM INTERNATIONAL, INC. INTERSTATE ELECTRICAL SERVICES J&M BROWN J. C. CANNISTRARO J.D. GRANT JCI JL ELECTRIC COMPANY INC JM OF NEW BEDFORD CO., INC JMF SERVICES LLC JOHN O MAHONY JOHNSON CONTROLS JOHNSON ELECTRIC SUPPLY INC JONES LANG LASALLE JUNCTION, INC KDN TEMPERATURE CONTROL SERVIC KINETIC CONTROLS KUTZ ELECTRIC L & V GALISE ELECTRICAL LED LIGHTING SOLUTIONS LLC LESCO LIGHTHOUSE ELECTRICAL LIGHTING EFFICIENT DEVICES LLC LIGHTING DESIGN GROUP/FSG LIGHTOLIER LIGHTS*ENERGY*DESIGN LED LIME ENERGY LITEMOR LITTLEFOOT ENERGY CORP LONGDEN COMPANY MCDONALD ELECTRIC MCQUAY SERVICE MECHANICAL DESIGN SERVICES MEDFORD WELLINGTON SERVICE CO MELINK CORP MIDLAND CONSTRUCTION MUNRO DISTRIBUTING INC NARDONE ELECTRIC CORP NATIONAL LIGHTING & DESIGN NATIONAL MECHANICAL NATIONAL RESOURCE MANAGEMENT, INC NEEDHAM ELECTRIC NESCO NEW ENGLAND BUILDERS AND CONTRACTORS NEW ENGLAND ENERGY NEW ENGLAND LTG NEWTON ELECTRIC NEXAMP NEXREV INC NORESCO NORTHEAST ELECTRICAL NORTHEAST ELECTRICAL DISTRIBUTORS NORTHERN ENERGY SERVICES NORTHSTAR MECHANICAL, INC NUZZ ELECTRIC NXEGEN OPTIMUM ENERGY PAULS ELECTRIC INC PECI PERRONE ELECTRIC PHILLIPS DESIGN GROUP PREFERRED CONTRACTORS PRISM CONSULTING INC. QUALITY CONSTRUCTION RDK ENGINEERS-SEAPORT CTR RECCO REFRIGERATION ENGINEERIN REGENCY LIGHTING INC RETROCOOL ENERGY INC REXEL RICHARD WHITE SONS, INC 60 RISE ENGINEERING ROTH BROS INC RSA ELECTRIC S. G. MECHANICAL, INC. SAPER SYSTEMS SARTELL ELECTRICAL INC SAVE THAT STUFF SCHNEIDER ELECTRIC AMERICAS IN SIEMENS SITE STUFF SOUSA ELECTRIC STANDARD ELECTRIC STAPLES INC SULLIVAN & MCLAUGHLIN CO, INC SYLVANIA LIGHTING SERVICES T. A. SCHNARE TASTY VENDING LLC TECHNICAL CONSTRUCTION SERVICE TEKNIKOR ENERGY SOLUTIONS LLC THE CANTON CORP TIMELY IMPROVEMENTS TNT ENERGY, LLC TRANE UNITED MECHANICAL USM VANDERWEIL P, LLC VARDARO ELECTRIC VICTORY HEATING & A/C CO VILLA LIGHTING SUPPLY WATTSAVER LGHT PROD WAYNE ELECTRIC & ALARMS WESCO DISTRIBUTION WESTON WIEDENBACH-BROWN CO INC WILLIAM SLOAN ASSOCIATES WINSTON BUILDERS WIREWORKS WOLFERS LIGHTING WOODSTONE ENERGY LLC YALE ELECTRIC SUPPLY YANKEE TECHNOLOGY INC Z LIGHTS 61 Appendix C: NATIONAL GRID NATURAL GAS LARGE PROGRAM INSTALLERS OF RECORD A&A WINDOW PRODUCTS, A&M ROOFING & SHEET ACCELERATE ENERGY AECOM USA INC AHO CONTRUCTION INC AIR SOLUTIONS & BALA ALARES LLC ALL CAPE INSULATION AMERESCO, INC. AMERICAN BOILER CO AMERICAN PLANT MAINT ANCHOR INSULATION ANDERSON INSULATION ATLANTIC BOSTON CONS ATLAS COPCO COMPRESS AUTOMATED BLDG SYST AZ CORPORATION B & R GLASS LLC B & V TESTING INC BAKER ENGINEERING BARROWCLOUGH CONTRAC BCM CONTROLS CORP BEDFORD VA MEDICAL BETH ISRAEL DEACONES BLUESTONE ENERGY SER BOSTON PARK PLAZA BUILDERS SYSTEMS INC BUILDING AUTOMATION BURTON LAUNDRY EQUIP CLSB1, LLC CROSSWINDS ENTERPRIS CUSTOM INSULATION CO CWC BUILDERS INC DANIELS EQUIPMENT DEL OZONE DELLBROOK CONTRUCTIO DENNIS YARMOUTH REG. DEPT. OF VETERAN AFF DNS LLC ALPHA MECHAN DURR SYSTEMS ECHOSM ELLIOTT CONTROLS EMCOR SERV. NORTHEAS ENE SYSTEMS INC FABRIZIO & ASSOCIATE FALMOUTH HOSPITAL FMC TECHNOLOGIES, IN FRANK I ROUNDS CORP FRASER ENGINEERING GALEXC GEORGE T WILKINSON, HEATING & COOLING SP HK LAUNDRY EQUIPMENT HONEYWELL HOWSE CORPORATION HUNTINGTON CONTROLS IBMS INDUSTRIAL BURNER JONES BOYS INSULATIO JP BARTLETT L&E AMERICA LEE KENNEDY CO INC LITTLEFOOT ENERGY CO LUITEN GREENHOUSE TE LUNENBURG PUBLIC SCH MECHANICAL DESIGN SE NORESCO NORTHEASTERN UNIVERS PAGE BUILDING CONST. PERFORMANCE PIPING PREHEAT INC RICHARD WHITE & SONS RICK ROY CONSTRUCTIO RISE ENGINEERING SG MECHANICAL STEAM TRAPS SYSTEMS TEKNIKOR ENERGY SOLU THOMPSON CONSULTANTS TRETHEWEY BROS. TRIPLE T CONSTRUCTION VERTEC CORP VIKING CONTROLS WILKINSON WINDOW SERVICES INC 62 Appendix D: NATIONAL GRID PROJECT EXPEDITERS Alliance Energy Solutions 61 Mattatuck Heights Rd., Waterbury CT 06705 Atlantic Energy Solutions, Inc. 18 Central Street, Suite 5, Foxboro, MA 02035 Bluestone Energy Services, LTD 136 Longwater Drive, Suite 103, Norwell, MA 02061 EMC – Energy Management Consultants, Inc. 120 Thadeaus Street, Suite 1, South Portland, Maine 04106 ENERCON, Inc. 11 Allen Road, Sturbridge, MA 01566 Energy Conservation, Inc. P.O. Box 726, Hanson, MA 02341 ENERGY SOURCE, Inc. 86 Sutton Street, Unit 1R, Providence, RI 02903 Groom Energy Solutions, LLC 96 Swampscott Road, Salem, MA 01970 Horizon Lighting and Energy Solutions 8 Chaisson Road, Newburyport, MA 01950 J&R Industrial Wiring 97 College Pond Road Plymouth, MA 02360 NES – Northern Energy Services 78 West Main Street, Northborough, MA 01532 PRISM Consulting, Inc. 1150 Hancock Street, 4th Floor, Quincy, MA 02169 RISE Engineering 1341 Elmwood Avenue, Cranston, RI 02910 63 Appendix E: TECHNICAL ASSISTANCE SERVICE PROVIDERS (PARTIAL LISTING) AIR POWER USA INC ANDELMAN AND LELEK ENGINEERING INC APPLIED ENERGY ENGINEERING B2Q ASSOCIATES INC BOYKO ENGINEERING INC COMPRESSED AIR TECHNOLOGIES INC DMI ENERGY & RESOURCE SOLUTIONS INC ENERGY MANAGEMENT ASSOCIATES INC ENERGY SYSTEMS DESIGN INC ENGINEERED SOLUTIONS INC NORTHEAST ENERGY EFFICIENCY SOLUTIONS PEREGRINE WHITE JR RG VANDERWEIL ENGINEERS LLP WSP FLACK & KUR 64 Appendix F: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (NSTAR GAS AND ELECTRIC) 65 Appendix G: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (NATIONAL GRID) 66 Appendix H: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (COLUMBIA GAS) 67 Appendix I: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (CAPE LIGHT) Adam T. Incorporated 455 State Road, PMB 303, Vineyard Haven, MA 02568 508-696-3733 www.adamtinc.com Building Performance Contracting Box 833, Truro, MA 02666 978-998-9373 [email protected] Cape Cod Insulation 18 Reardon Circle, S. Yarmouth, MA 02664 508-775-1214 www.capecodinsulation.com ConserVision Energy 376 Route 130, Suite C, Sandwich, MA 02536 508-833-8384 www.conservtoday.com Frontier Energy Solutions 502 Harwich Road, Brewster, MA 02631 774-237-0410 www.frontierenergysolutionsllc.com Insulate 2 Save, Inc. 410 Grove Street, Fall River, MA 02720 508-567-6706 www.insulate2save.net JM of New Bedford Co. 423 Coggeshall Street, New Bedford, MA 02746 508-992-5770 www.jmofnb.com McCarthy Construction Co. PO Box 52, West Dennis, MA 02670 508-280-6964 [email protected] 68 Appendix J: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (BERKSHIRE GAS) 69 Appendix K: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (WMECO) 70 Appendix L: MASS SAVE PARTICIPATING INDEPENDENT INSTALLATION CONTRACTORS (NEW ENGLAND GAS COMPANY) 71 Appendix M: MASS SAVE HOME PERFORMANCE CONTRACTORS (NATIONAL GRID) 72 Appendix N: MASS SAVE HOME PERFORMANCE CONTRACTORS (NSTAR GAS AND ELECTRIC) 73 Appendix O: MASS SAVE HOME PERFORMANCE CONTRACTORS (COLUMBIA GAS) 74 Appendix P: MASS SAVE HOME PERFORMANCE CONTRACTORS (WMECO) 75 Appendix Q: LOW INCOME PROGRAM ASSUMPTIONS AND CALCULATIONS 76 Appendix R: RESIDENTIAL PROGRAM SURVEY INSTRUMENT SURVEY INSTRUMENT This survey is being conducted by the New England Clean Energy Council. You are being invited to take this survey because your company is an Independent Insulation Contractor (IIC) or a Home Performance Contractor (HPC) in the Mass Save Home Energy Services Program for 1 to 4 family buildings. Your answers to the following questions will make it possible to estimate the total number of workers currently employed in the residential insulation business in Massachusetts. Please enter your email address:* Please enter your company name (if it's not obvious from your email address): Phone number: At the end of December 2011, how many energy auditors did you employ doing Mass Save Home Energy Assessments, on a full-time-equivalent basis (FTEs)?* [asked only of HPCs] Please estimate the number of homes (dwelling units) you insulated in 2011 in Massachusetts in the following 4 categories. Please review all categories before answering. First, the number of homes through the Mass Save program:* Second, through the Low Income WAP Weatherization program in Massachusetts: Third, outside of these programs, in existing homes, without any utility rebates or WAP funds or other subsidies: Fourth, as part of major home additions or other new construction: For the rest of this survey, please consider only your employees who do work supported by the Mass Save residential program (specifically, the Home Energy Services Program for 1 to 4 family buildings). -- Please estimate your total price of an "average" Mass Save insulation job (INCLUDING air sealing), including both what the customer paid plus what the utility program paid: 77 PLEASE ESTIMATE THE TOTAL MAN-HOURS REQUIRED TO COMPLETE THIS "AVERAGE" MASS SAVE INSULATION JOB, including all the paid hours such as travel time (and including any air sealing hours):* At the end of December 2011, how many people did you employ for Mass Save insulation and air sealing work, on a full-time-equivalent basis (FTEs), including all the employees on all your insulation crews?* If the same crews that do Mass Save work also do other types of work, such as WAP weatherization or insulating NEW homes or roofing, approximately what % of their time averaged over the year is spent on the Mass Save work?* How many personnel do you in employ in office or non-field installation roles to support Mass Save residential work? These could include employees that work in an administrative or office or overhead or management capacity. Please provide an estimate of full-time equivalent (FTE) employees.*
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