DOE Announces $30 Million for Energy-Efficient Housing Partnerships

Today, the U.S. Department of Energy announced 15 research-and-deployment partnerships to help dramatically improve the energy efficiency of American homes. These highly qualified, multidisciplinary teams will receive a total of up to $30 million for the initial 18 months of the projects to deliver innovative energy efficiency strategies to the residential market, and address barriers to bringing high-efficiency homes within reach for all Americans.

A total of up to $20 million per year will also be made available for the partnerships of three potential one-year extensions. These research-and-deployment partnerships will provide technical assistance to retrofit projects, and will leverage industry expertise and funding to support DOE's energy-efficiency retrofit programs.

This effort will support the department's Retrofit Ramp-Up initiative, announced by Vice President Joe Biden in April [see GoodBiz113 article, "Vice President Biden Kicks Off Earth Day Activities; 25 Communities Selected for Recovery Act 'Retrofit Ramp-Up' Energy-Efficiency Awards"], which brings communities, governments, private-sector companies and nonprofit organizations together to deliver energy-efficiency upgrades, or retrofits, to entire neighborhoods and cities.

"Home energy efficiency is one of the easiest, most immediate and most cost-effective ways to reduce carbon pollution and save money on energy bills, while creating new jobs," said Secretary of Energy Steven Chu [pictured]. "By developing and using tools to reduce residential energy use, we will spur economic growth here in America, and help homeowners make cost-cutting improvements in their homes."

The partnerships announced today will provide additional support to ongoing retrofit initiatives that are making cost-effective energy efficiency retrofits easily accessible to hundreds of thousands of American homes and businesses. These partnerships will research and deploy new technologies and demonstration projects, and provide systems engineering, quality assurance, and outreach for retrofit projects throughout the country.

Existing techniques and technologies in energy efficiency retrofitting -- such as air-tight ducts, windows and doors; heating and cooling systems; insulation and caulking -- can reduce energy use by up to 40 percent per home, and cut energy bills by $40 billion annually.

The following selections were made though the DOE Building Technologies Program, which forges research partnerships across the residential building industry to develop cost-effective solutions that dramatically reduce the average energy use of housing while improving comfort and quality. To find out more, visit http://bit.ly/BuildingTechDOE.

To further support the broad deployment of energy-efficient building retrofits, DOE is hosting the Residential Building Energy Efficiency Meeting 2010 in Denver, Col., from July 20-22, to present cutting-edge research results; identify key stakeholder and market transformation needs; and facilitate collaboration opportunities between conference participants. This conference is targeted to researchers, architects, contractors, manufacturers, builders, utilities, legislators, lenders, realtors, auditors, raters, installation technicians, homeowner association representatives, and anyone else interested in creating substantial connections with the field.

The following is a brief description of the selected teams -- each of which will receive between $500,000 and $2.5 million, depending on their performance:

* Advanced Residential Integrated Energy Solutions [ARIES], led by Levy Partnership of New York, N.Y. ARIES will focus on energy solutions for new and existing affordable housing, including factory- and site-built homes. ARIES is a broad-based industry team of more than 50 organizations, including implementers, product suppliers and trainers. The ARIES technical team members include CDH Energy, Southern Energy Management, Syracuse University Center of Excellence, and NTA Inc.

* Alliance for Residential Building Innovation [ARBI], led by Davis Energy Group [DEG] of Davis, Cal. ARBI will focus on resolving technical and market barriers to large-scale implementation of innovative energy solutions for new and existing homes. Team members are effectively aligned for retrofit activities -- providing considerable experience in audits, home-performance contracting, marketing and finance. Specific partners include Rocky Mountain Institute, UC Davis, Heschong Mahone Group, Green Home Solutions, and Bevilacqua-Knight.

* Building America Retrofit Alliance [BARA], led by Building Media Inc [BMI], based out of Wilmington, Del., and the New Jersey Institute of Technology [NJIT], located in Newark, N.J. BARA will focus on innovative market-delivery strategies to improve energy efficiency in our nation's existing housing stock. This team has very unique capabilities in the areas of training and outreach. Additional team members include Steve Easley and Associates, Confluence Communications, DuPont, Louisiana State University, Enterprise Community Partners, Institute for Business and Home Safety, and Hancock Software, among others.

* Building America Partnership for Improved Residential Construction [BA-PIRC] research team, led by the Florida Solar Energy Center [FSEC], a research institute of the University of Central Florida in Orlando, Fla. BA-PIRC will focus on cost-effective efficiency solutions for new and existing homes in hot, humid and marine climates. FSEC possesses extensive residential energy research facilities, including the Manufactured Housing Laboratory, the Flexible Roof Facility, the Building Science Lab, the Hot Water Systems Laboratory, and the Climate-Controlled Air Conditioning Laboratory. Team members include Newport Partners [NP], Washington State University [WSU], Northwest Energy Works [N.E.W.], Residential Energy Services Network [RESNET], Building Performance Institute [BPI], WellHome, Florida Home Energy and Resources Organization [Florida H.E.R.O.], Calcs-Plus [CP] and TexEnergy Solutions.

* Building Energy Efficient Homes for America [BEEHA], led by the University of Nebraska-Lincoln [UNL] and the University of Florida [UF], headquartered in Lincoln, Neb., and Gainesville, Fla., respectively. This team possesses impressive simulation and computing facilities, as well as building systems research laboratories. This multidisciplinary research team will explore and deliver systems-engineered solutions for new and existing homes. Industry partners for this team include HearthStone Homes, Rezac Construction, Barry Rutenberg and Associates, G.W. Robinson Homes, Tommy Williams, and Johnson Controls.

* Building Industry Research Alliance [BIRA], led by ConSol with headquarters in Stockton, Cal. BIRA's research will focus on energy and peak reduction in homes by evaluating technologies and market-delivery approaches for neighborhood-scale implementation. The research will target a diversity of homes and a variety of strategies for retrofit implementation. Team members include more than 80 research organizations and building industry partners, such as Washington State University, Arizona State University, UC Davis, General Electric, Ennovationz, Sacramento Municipal Utilities District, San Diego Gas & Electric, Arizona Public Service, Salt River Project, and Bank of America.

* Building Science Corporation [BSC] in Somerville, Mass., is a leading developer of energy systems for durable, high-performance homes. With an impressive depth of capabilities in all key areas required to complete the proposed research, BSC will focus on advanced technical solutions, code barriers, and market demonstrations for new and existing homes. The BSC team includes Affordable Comfort, ARES Consulting, Community and Economic Development Association of Cook County, DEAP Energy Group, National Grid, and a wide array of material suppliers and manufacturers.

* Consortium for Advanced Residential Buildings [CARB], led by Steven Winter Associates Inc., Norwalk, Conn. The CARB team has extensive experience successfully conducting and completing team-based advanced building systems research, whole-house research, and outreach. The CARB team will focus on innovative market delivery and cost-effective demonstrations of high-performance retrofits and new homes. Team members include MaGrann Associates, Alliance to Save Energy's BCAP, Pratt Center for Community Development, University of Florida's PREC, Green Builder Media, Jay Hall and Associates, Masco, and a broad spectrum of additional stakeholders in the residential energy industry.

* Habitat Cost Effective Energy Retrofit Program Team, led by Dow Chemical Company in Midland, Mich. This team will focus on applying innovative retrofit technologies, in partnership with Habitat for Humanity. These efficiency technologies can deliver energy savings up to 50 percent, and will focus on addressing affordable housing in cold and mixed-humid climate regions. The team's vision is to improve retrofit methodologies by validating cost-effective strategies through test homes, and identifying technology gaps that must be addressed. The Dow team includes Michigan State University, Ferris State University and Habitat for Humanity, with technical contributions from Duke Energy, DTE, and Exelon.

* Fraunhofer Center for Sustainable Energy Systems [CSE] in Cambridge, Mass., will deploy large-scale energy savings by integrating efficiency and renewable energy systems in new and existing homes. The team members have extensive experience in whole-house system integration research -- from simulation through commissioning. Team partners include Owens Corning, researchers from MIT, Conservation Services Group, Boston Redevelopment Authority, and Austin Housing and Economic Development, plus several additional team members from the residential buildings community.

* Integrated Building and Construction Solutions [IBACOS] in Pittsburgh, Penn., will develop and demonstrate integrated systems of design, procurement, construction, quality assurance and marketing needed to transform residential retrofits and new construction across the U.S. IBACOS team members include Advanced Energy, Criterium Engineers, EcoBroker International, GreenHomes America, and the Potomack Group -- along with a wide range of highly experienced residential building scientists, researchers, architects, green-building realtors, retrofit specialists, program evaluators and trainers.

* National Association of Home Builders [NAHB] Research Center Industry Partnership for High Performing Homes. The NAHB Research Center is located in Upper Marlboro, Md., and has over 40 years of experience as an integrated, system-based technology advancement center with the primary mission of removing technological and regulatory barriers to innovation by leveraging its access to remodelers and home builders. Team members include Southface Energy Institute, USDA Forest Products Laboratory, Business Excellence Consulting, Brick by Brick, Residential Building Industry Consulting Services, Concurrent Technologies Corporation, Greenbelt Homes, plus many others.

* National Energy Leadership Corps [NELC], led by Pennsylvania State University in State College, Penn. The NELC will focus on a new approach to home and homeowner assessment that facilitates multiple levels of energy-efficiency measures for existing homes -- including modest and low-cost improvements, extensive energy retrofits, occupant interactions, and the introduction of advanced energy controls and renewable-energy technologies. NELC team members include a broad diversity of partners, such as SmartDwell, Sequentric Energy Systems, Envinity, GroundedPower, ONTILITY, Eaton Corporation, Lutron Corporation, Schneider Electric, Pittsburgh Green Innovators, Partnership for Achieving Construction Excellence [PACE], Conservation Consultants, East Liberty Development, and the Green Building Alliance.

* NorthernSTAR Energy Efficient Housing Research Partnership Team, led by the University of Minnesota in Minneapolis, Minn. The NorthernSTAR team embraces the philosophy that achieving optimal energy efficiency in houses, neighborhoods and communities requires a holistic performance approach, using an integrated implementation process. This team will develop and deploy high-performance energy-efficient solutions for new and existing homes in cold and severe cold climates. Team members include the Center for Energy and the Environment, Building Knowledge, Building Green, Hunt Utilities Group, Verified Green, Energy Center of Wisconsin, Wisconsin Energy Conservation Corps, McGregor Pearce, Minnesota Pollution Control Agency, the University of Wisconsin, and Wagner Zaun Architecture.

* Partnership for Advanced Residential Retrofit [PARR], led by the Gas Technology Institute in Des Plaines, Ill. PARR has strong experience in design, development, integration, and testing of advanced building energy equipment, components and systems in laboratory and test house settings. The team will focus on improving performance, quality and market acceptance of residential retrofits in cold climates. Team members include CNT Energy, the Midwest Energy Efficiency Alliance, the Building Research Council at the University of Illinois, and Future Energy Enterprises, among others.

GoodBiz113's Take
Kudos to Secretary Chu for once again exercising his distinct brand of vision and leadership to fuel such a far-reaching and innovative endeavor that holds so much long-term potential. Current and future generations -- not to mention, American small businesses, our economy and the environment -- will greatly benefit from funding these win-win-win synergies.

SOURCE: U.S. Department of Energy
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OPEN: Small-Business Owners Hold the Line on Hiring, Remain Focused on Growth in Uncertain Economy

Hiring plans among small-business owners are at their second-lowest point in the seven-year history of the OPEN from American Express® Small Business Monitor, a semi-annual survey of business owners. This fall, hiring plans among business owners have dropped, with three in 10 [31%] business owners reporting plans to hire full- and/or part-time staff in the next six months. That is down from 34% in fall 2006; 37% in fall 2005; 35% in fall 2004; 34% in fall 2003; and 26% in fall 2002.

Health care is cited by one in five small-business owners [21%] as the issue that will most sway their decision on the next president of the United States, followed closely by homeland security [cited by 19%].

Despite a lack of robust hiring plans, growth remains a top priority for entrepreneurs. More than one-third [37%] of small-business owners report growing their business as their company's single most important priority over the next six months -- on par with 35% last fall. In fact, more than half [57%] of business owners are willing to take on risk in order to grow their business -- unchanged from 2006.

"Small-business owners are on the front lines -- dealing with issues like health care, the housing market and interest rates -- so they know firsthand where we are as a country," said Susan Sobbott, president of OPEN from American Express. "It says a lot about the attitude of small-business owners that they remain optimistic in the face of this difficult environment, as evidenced by their plans for growth and investment."

Entrepreneurs Adjust to Energy Prices, but Economy and Rising Costs Present a Challenge
According to the survey, business owners are adjusting to higher energy and gas costs. A much fewer number report having lost sales as a result of higher energy costs [17%] -- down sharply from fall 2006 [31%]. Fewer entrepreneurs also report having to pay rising costs for the materials and products they need as a result of higher costs [65% -- down from 71% in fall 2006]. One-third of businesses in the South [31%] report rising gas and energy costs as having little impact on their business.

More business owners believe the downturn in the housing market and rising interest rates have negatively impacted their business. The survey found a 5% rise in the number of business owners who believe that the downturn in the housing market has had a negative affect on their business, compared to this spring. Half of all business owners believe rising interest rates have negatively impacted their business.

Rising costs and uncertain economic conditions [each 20%] are the biggest challenges entrepreneurs face in growing their business. Finding the right staff [19%] and being too busy satisfying existing customers [17%] present additional challenges.

Entrepreneurs are not letting the economy dictate their plans for growth. Over the next six months, nearly half [48%] of business owners expect their business to grow, regardless of the economy. Nearly three out of 10 [28%] of business owners report the economy as the greatest determinant in growing their business.

Business Owners Plan to Invest in Technology and Marketing
Entrepreneurs plan to make capital investments as an avenue to business growth. The percentage of small-business owners planning to make capital investments over the next six months remains on par with the previous fall [59% vs. 56%].

Business owners will invest most heavily in the area of technology [45%]. More are planning to make their next purchase in mid-priced equipment -- e.g., desktops, laptops and printers -- than a year ago [53% vs. 47%]. Nearly one in five (19%) plans on making more substantial investments in major technology infrastructure -- such as software, servers or telephone systems. Slightly fewer [17%] plan to invest in modestly priced items, such as PDAs or smart phones.

Besides technology, other investment areas include office equipment [21%], real estate [15%], manufacturing/production equipment [14%] and office furnishings [13%].

In addition to capital investments, business owners plan to invest marketing dollars as a way to grow. Entrepreneurs are taking advantage of online marketing techniques -- with the company website being the most-utilized online marketing method [55%].

Nearly seven in 10 [69%] business owners believe their marketing dollars are well-spent. Almost half [46%] of business owners report seeing a direct uptick in sales when spending money on marketing. Male business owners are more likely to agree that marketing dollars have a direct positive impact on sales [47% vs. 32% female owners].

Those with Hiring Plans Center on Growth; Males Most Likely to Hire to Increase Business
Although hiring plans over the next six months are near record lows, among those businesses that plan to hire, three-quarters [75%] say they need to hire to handle their growing business. Two-thirds [65%] will hire to help increase business volume. This number is greater among male business owners, as seven out of 10 plan to hire for this reason [71% vs. 46% of female owners].

Two out of five [43%] will hire because they have a new business venture. One in three say they will hire because they have finally found the right candidate for the position [33%], or need seasonal help [28%].

Business owners do not believe the increase in minimum wage is offset by small-business tax breaks included in the law. Four in 10 business owners [44%] disagree that the increase in minimum wage passed by Congress is offset by small-business tax breaks included in the law. This number was even higher among male business owners [59% vs. 35% of female owners].

Health Care Remains Top of Mind
The rising costs of doing business have not overridden the importance of employee well-being. Seven out of 10 bosses [69%] agree it is important to offer health-care coverage to their employees. The number of businesses offering health-care benefits to employees remains unchanged from last fall [71%].

Business owners are looking for ways to make health-care coverage more accessible to their employees. Nearly eight in 10 [79%] small businesses would consider proposed health-care policy solutions as a way to make health care accessible.

About two out of three [65%] support the solution to "create purchasing cooperatives for small businesses to make heath insurance affordable." More than half support a plan that would "ensure every child in the U.S. has health insurance" [58%], or "provide tax credits to low-income workers to help pay for health care" [54%].

Fewer than half would support the proposed solution of a "universal health-care system" [42%], or an "additional tax on tobacco and alcohol" to fund health care [38%]. Three-quarters [75%] of business owners believe health-care coverage will be a problem for the next generation of entrepreneurs.

Cash Flow Issues Keep Entrepreneurs Up At Night
Business issues are a cause for entrepreneurs' insomnia. One in four [26%] entrepreneurs cited cash-flow issues as what "keeps them up at night," followed by ideas for growth [23%], customer service [16%], staff [15%] and competition [9%]. Among those businesses in the North, 32% are kept up by ideas for growth.

Cash flow remains a constant concern for business owners. The number of entrepreneurs experiencing cash-flow issues remains on par with the previous fall [49% vs. 47%]. Among small businesses with cash-flow concerns, 22% will access their personal or private funds, while others will obtain and use line of credit [20%], put off purchases [14%], or use a credit card [12%] or short-term loan [10%] in order to address these concerns.

Business owners' handle on accounts receivable is not as good as they think. Nearly eight in 10 [79%] entrepreneurs do not believe their accounts receivable are too high. Yet, to improve cash flow, 25% are most likely to get aggressive in collecting accounts receivables. Others will look for special payment terms [13%], raise prices [12%], or offer customer discounts for early payment [11%] in order to improve cash flow.

On average, small-business owners are able to project cash on hand five months out. Business owners in the South are in the ideal situation, with the ability to project cash on hand more than six months out.

"It is not surprising that tightening purse strings put greater emphasis on cash flow," said Sobbott. "Anecdotally, we see small-business owners becoming more sophisticated in dealing with cash-flow issues, pursuing solutions such as special payment terms like trade terms."

Prosperity Signifies Growth; More Male than Female Entrepreneurs Have Plans to Grow
The majority of entrepreneurs plan to grow over the next six months. However, views on growth diverge regionally and among the sexes.

According to the survey, three-quarters of business owners plan for growth over the next six months. However, more male than female business owners have a plan to grow [82% and 64%, respectively].

Overall, three out of 10 [30%] small businesses measure growth by their profits. One out of five [22%] measure growth by the number of customers; this number jumps to nearly one in three [32%] in the West. One-third [35%] of owners agree that "growth" can be signified by prosperity; significantly fewer associate growth with achieving balance/wellness [23%], the freedom to choose [20%], and popularity [15%].

Being an Entrepreneur is as Fulfilling as Expected
Business concerns do not weigh on business owners' sense of fulfillment. Despite an uncertain economy and concerns over cash flow, three out of four [74%] owners of small businesses find that being an entrepreneur is fulfilling, while only 46% agree that being an entrepreneur is harder than expected; this number rises to 53% in the West.

Four out of ten [42%] agree they are an entrepreneur because they are a born leader. But leaving a lasting impression is what appears to matter most to entrepreneurs, as two out of three [68%] claim their business is an important part of their legacy. The vast majority of business owners [89%] in the North report this sentiment to be true.

More than Half of Entrepreneurs on Track for Retirement; Males Require More Money
Business owners are on track to meet retirement goals, although goals differ between the sexes. The average net worth business owners believe they need to retire is $1,286,000. Male small business owners desire an average of $1.5 million net worth in order to retire, compared to $1.2 million among female business owners.

According to the survey, more than half [55%] of business owners report they are on track to save the funds they need for retirement -- unchanged from last fall. However, six out of 10 say they are worried about their ability to save for the retirement they want -- on par with last fall [60% vs. 57%]. Business owners in the South are in the best shape for retirement; nearly half [49%] are not at all worried about their ability to save for the retirement they want.

Entrepreneurs Show Concern for the Environment
Even as the impact of rising energy costs diminishes, business owners' concern for the environment is still an action item. The majority of small-business owners/managers [87%] have taken steps to make their business environmentally friendly.

Half of business owners have taken steps to recycle waste products [51%] or follow environmental recommendations within their industry [48%]. Less than half [46%] buy and use recycled products, or offer eco-friendly products and services to customers [24%]. Most agree that it is important to give back their community [87%], and take actions in business to reflect concern for the environment [79%].

Additional survey results are available by contacting OPEN from American Express.

Survey Methodology
The OPEN from American Express Small Business Monitor, released each spring and fall, is based on a nationally representative sample of 627 small-business owners/managers of companies with fewer than 100 employees. The survey was conducted via telephone by International Communications Research from Aug. 20-Aug. 31, 2007. The poll has a margin of error of +/-3.9%.

About OPEN from American Express
OPEN is the American Express team dedicated exclusively to the success of small-business owners and their companies. The OPEN Team supports business owners with unparalleled service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business.

Specifically, business-owner customers can leverage an enhanced set of products, tools, services and savings -- including charge and credit cards, convenient access to working capital, robust online account management capabilities, and savings on business services from an expanded lineup of partners. To obtain more information about OPEN, visit OPEN.com; or, call 1-800-NOW-OPEN to apply for a Card or loan. Terms and conditions apply.

GoodBiz113 ad partner American Express Company [www.americanexpress.com] is a leading global payments, network and travel company founded in 1850.

SOURCE: OPEN from American Express
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