Stage 2 - GUEP Quarter Nals Fairbanks North Star Borough's Energy E .

Additionally, 36% of households in the FNSB have school aged children; reaching out to the communitythrough the schools will encompass all social and economic groups.How will the local government be involved? What commitment will they make?Local government is an integral part of the Fairbanks/North Pole program. Two mayors (FairbanksNorth Star Borough and City of North Pole) sit on the steering committee and are committed to theproject through 2017. The Fairbanks North Star Borough Assembly has already voted to accept andmatch funds for an intern position through the application stage. The borough has provided office spaceand equipment for the intern and will do so for future positions associated with the competition.Both local governments will continue to pursue long-standing goals of reducing operating costs ofmunicipally owned facilities (including schools) through increased energy efficiency. Energy savingsopportunity awareness campaigns will be hosted to involve municipal employees in both their at-workand at-home energy usage roles.Municipal incentives that are planned via local regulations, zoning, taxation, etc.Currently, there are no planned regulation, taxes or zoning changes.Involvement of businesses or business groupsThere are many avenues available to engage the business community; the Fairbanks GUEP program willuse all that are practicable. There are industry groups (i.e. Alaska Miners Association), serviceorganizations (Rotary groups) and large employers.In order engage the business community, steering committee members and staff will contact the chiefexecutive officers of the largest employers in the community and ask for their assistance by accessingtheir employees to participate in the program. In addition, organizations such as the Chamber ofCommerce, Rotaries and member organizations like the Associated General contractors will becontacted. They will be asked to help engage their employees or other businesses in a particularindustry to participate in an energy use competition. The approach will combine traditional media (printmaterials) with outreach (person to person contact) and utilize a number of behavioral changecomponents. 1) Liking – one construction company challenging another; 2) social proof – the moreemployers participate, the more others will participate and 3) commitment and constancy – those thatmake a public commitment are more likely to follow through.A number of large businesses in the community have already expressed interest in participating in theprogram.Any benefits and incentives available from local utilities via official EnergyEfficiency Programs; Involvement of other partnering organizations (includingletters of commitment, if available)The recent nationwide recession left Alaska and Fairbanks largely untouched. The recent rise in the costof a barrel of crude oil has had a far greater impact on Fairbanks and other Alaskan communities.Although the State derives the large majority (82%) of its revenue from oil and gas, the rise in prices hasnegatively affected many of its communities as a result of the concurrent rise in the cost of electricity,space heat and transportation. The cost of heating oil in Fairbanks rose 63% since November of 2005( 2.44- 3.85). The average cost of a kilowatt hour rose from 0.17 to 0.24, a 41% increase from 2008.FNSB Fairbanks, AlaskaStage 2 – GUEP Quarterfinals4

The State of Alaska and Golden Valley Electric Association have made some adjustments in response tothe high cost of energy. There are no mandated programs in the state or locally, although the state hasa publically stated goal of improving energy efficiency by 15% between 2010 and 2020. The state andGVEA have energy efficiency retrofit and educational programs designed to reduce residential energyusage.GVEA started a home energy audit program in 1992 – Home Sense. Over the course of twenty years,7958 residences (out of 38,000) availed themselves of the program, resulting in an estimated 44 millionkilowatt hours (kWh) saved. The program cost just over 2 million dollars over the twenty year period.This equates to an estimated kWh cost saved at 5 cents compared to the average utility cost of 18 cents(in 2012 dollars) to generate that power. Home Sense program components include a discounted homeenergy audit, information on energy saving, energy efficient light bulbs and car plug-in timers (cars needto have plug-in block heaters during the winter in Fairbanks). GVEA charges 40 to customers, althoughGVEA frequently offers the program at no cost. It is interesting to note the program participation levelsover the years. Between 1992 and 2005 an average of 296 residents per year participated. After theincrease in energy costs, participation levels per year rose by 85% and have since leveled off at over 600a year. GVEA is currently shifting focus of the Home Sense program to education and communityawareness; they are an active partner in Fairbanks’ GUEP program.At the state level, the Alaskan Housing Finance Corporation’s (AHFC) mission is to provide Alaskansaccess to safe, quality, affordable housing. The mission has expanded to energy efficiency andweatherization programs. AHFC has three statewide programs aimed at increasing energy efficiency: To promote the energy efficiency of existing and new constructed homes, AHFC offers interestrate reductions to homebuyers for properties meeting certain criteriaThe Home Energy Rebate Program provides Alaskans (regardless of income) up to a 10,000rebate for pre-approved energy efficiency improvements including materials and contractedlaborWeatherization program provides individuals who meet certain income levels (low to moderate)weatherization services provided by an approved contractor at no cost to qualified applicantsAHFC’s experience with energy efficiency programs is similar to that of other jurisdictions nationwide.When energy prices increased, there was a sharp increase in the number of applications, followed by aconsiderably lower, flat number of applications. Program managers likened energy efficiency programsto a church. Those who avail themselves of programs are choir members (i.e. singing to the choir). Theimportant and harder part is to get the congregation involved in programs. And after that happens,perhaps the agnostics will participate as well. In Fairbanks, since program inception, 2361 residentsparticipated in the Home Energy Rebate program and 892 participated in the Weatherization program.There are a total of 38,000 residences in the community. AHFC and the Fairbanks partnership have ashared goal of increasing participation in energy efficiency programs.Another state agency, the Alaska Energy Authority (AEA), has a mission to reduce the cost of energy inAlaska. As such, AEA has energy efficiency programs, of particular interest is their public education andoutreach program. It is cornered on their website (www.akenergyefficiency.org) that offers everythingfrom savings calculators to tools for teachers. The public outreach and education program also works toimprove the coordination of efforts promoting the adoption of greater end-use efficiency measuresthrough information sharing and integrated planning. Fairbanks GUEP program is interested inrealigning the wheel, not reinventing it. AEA has developed television ads, a mascot and other publicinformation materials that can be used in Fairbanks and North Pole.FNSB Fairbanks, AlaskaStage 2 – GUEP Quarterfinals5

Both state agencies have agreed to provide relevant assistance to Fairbanks in pursuit of theGeorgetown University energy prize, and have provided letters documenting their support.Involvement of citizen’s groups and major landlordsOnce the stage two application is accepted, Fairbanks steering committee will contact various citizensgroups and seek assistance and participation in the competition. In general terms, the program willcontact groups and enlist their support in the competition. For example, high school Key Clubs take onservice projects – they would be a natural fit as they are motivated to effect change and are required toconduct community projects. The Northern Alaska Environmental Center will be inclined to participateby virtue of their membership. The Fairbanks Engineering Society will be contacted as they will beinterested in results and numbers – a group whose members are likely to participate. The groups areprevalent, it is a question of identifying all of them, identifying a motive and being systematic ingarnering their support and participation. The steering committee members will bring a strongadvantage to the citizen’s group component – members have broad knowledge of groups and theirpotential.Major landlords have been contacted in the course of determining the program design. Differentproperties have varied circumstances. Some pay a portion of the electric bill and have tenants pay whenthey exceed certain usage. Some have already retrofitted electrical fixtures in common areas but not inrental units and some have already installed low energy appliances in units. Again, a systematicapproach to major landlords will be applied during the competition in order determine where themaximum energy efficiencies can take place.Involvement of other partnering organizationsAs stated earlier, the state agencies, the Alaska Housing Finance Corporation and the Alaska EnergyAuthority will offer whatever assistance they can to the Fairbanks program. The steering committeemembers represent other partnering organizations – local government, local utility, the school district,the university energy research organization, an economic development organization and a cold climateresearch organization.Section 2) Energy Savings PlanOverall summary of the planned program, including relevant methods andtechnologiesEnergy is expensive in Fairbanks. Ninety-eight percent of residents use heating oil or wood for spaceheat, the remaining 2% use natural gas. Until recently, power was locally generated by diesel, otherpetroleum products, or small coal-fired power plant, with additional power wheeled to Fairbanks fromdistant hydro and natural gas generation in Cook Inlet, 400 miles away. This has led to electricity costsof .24 per kilowatt hour, twice the natural average. Fairbanks has made some adjustments in responseto the high cost of energy. Golden Valley Electric Association constructed an 18 MW wind farm and isworking on a clean coal project to augment existing generation and reduce reliance on diesel and otherpetroleum products for power generation. They have also encouraged residents and businesses to lowertheir energy consumption and have funded a number of retrofits, resulting in a 10% decline in averageresidential consumption over the past decade. The community as a whole is working diligently to accessnatural gas supplies via a pipeline or trucking for space heat. Although there are significantopportunities for savings in both heating and electric power, but our program focuses on reducedFNSB Fairbanks, AlaskaStage 2 – GUEP Quarterfinals6

electricity consumption as heating methods used by the vast majority of our residents (heating oil andwood) does not qualify under the GUEP.The proverbial low-hanging fruit of energy efficiency programs has already been picked. Fairbanks facesthe same “stuck” problem others experience – a certain (relatively small) percentage of residents availthemselves of energy efficiency programs but it is difficult to engage the larger community in programs.We are now planning to take a methodical, coordinated approach to energy efficiencies with the use ofsome creative tools and extensive outreach efforts. Our four target audiences are residents with schoolage children, residents without school age children, businesses with employees and landlords ofproperties with a large number of rental units. In order to engage our target audiences, the programwill utilize four primary tools: Smart phone app primarily for use with the residents with school age children target audience(k-12 program). It will allow users to track potential savings associated with their energy-savingactivities and tie the savings amounts into progress toward a potential reward. Fairbanks doesnot have smart meters, so the app will be a tool to estimate and track progress. Verification ofprogress will occur on a monthly basis through electric billsSmart phone app, inspired by ‘Gym Pact’, a healthy living smart phone app. Based on the simplebehavioral economics principle that people are more motivated by NOT losing money than bysimply earning money, the app will have three components 1) commit – residents will make amonthly Pact to complete discrete, measurable activities that will save energy. Users will setwhat they’ll pay other Pact members if they don’t reach their goal; 2) meet the goals – use thePact app to track progress; 3) reap the rewards by earning cash for saving energy, paid for bymembers who don’t reach their goal. The target audience for this app is residents withoutschool age children and employees of businesses.Web platform that provides overall program information and specifically allows residents toidentify and track savings associated with their behavior. The web platform will act as “homebase” for the program and also provide tools for those residents who cannot use the smartphone apps. It will also provide a link to GVEA’s website so consumers can gauge their actualsavings/energy reductions by reviewing their monthly billsA web mapping application that will allow residents to enter in the location of their residence,along with information about their energy use. The application would be used to generatestatistics about energy savings within defined geographic boundaries, such as school attendancearea boundaries. The data gathered can also be used to feed an “information dashboard” thatwould be part of the web platform “home base.” A screen shot of the mapping application isattached.The K-12 component of our program will include competitions, a mascot and EE curriculum that isalready approved by the State Board of Education. District wide, there will be a kilowatt hour drive,similar to penny drives, where school aged children compete with others in their school and otherschools for energy reductions at home. GVEA has the ability (and willingness) to group residentialaccounts either by individual accounts based on student names, addresses or by school attendanceareas. The smart phone app that estimates and tracks savings and the website will both be used astools. There will be age appropriate prizes for top competitors and teams. We anticipate the studentshaving an impact on their parent’s behavior. Homes with school-aged children tend to have moreoccupants than those without, so the potential for improved energy efficiency is great.FNSB Fairbanks, AlaskaStage 2 – GUEP Quarterfinals7

For adults without school age children, the Program will focus changing behavior using a smart phoneapp that executives a very simple concept of using negative reinforcement (a monetary penalty) topromote positive behavior (reducing energy use). Inspired by ‘Gym Pact’, which was designed toencourage healthy lifestyles, the app will be developed at the University of Alaska Fairbanks. Weanticipate this app could be applied to other markets and will ensure it is developed with adequateflexibility to ensure it is easily transferable. The app will allow users to make a twofold commitment foreach month, including 1) set a target for making home improvements that will directly result in energysavings; and 2) agree to a fine for not achieving the goals they have set for themselves. Then, at the endof the month, those that succeed in carrying out their pact are rewarded the money paid out by theusers who did not meet their goals. Gym Pact claims to have a 90% effective rate by achieving thedelicate balance of reward/punishments systems. By having users commit to a lower amount for thereward and a higher amount for the penalty, the successful payment pool effectively comes from theparticipants that did not make their goal. Included in the app will be an energy savings calculator thatwill let users estimate how much their energy savings accomplishments will save them. The user couldselect a timeline on a monthly basis, then select a pledge, for example, having the lights on only 4hours a day, or technological solution of switching to CFLs and calculate the savings. Going to 4 hours aday for a month would save 192 kWh or over 46 (dinner for two). Going to CFLs could save 907.76,enough for a trip to Hawaii.The Fairbanks Program will enlist the support of employers in the borough, both large and small, inorder to engage their employees in energy efficiency efforts. Reaching out to the largest employers canpotentially have a greater return on a time investment – the top 25 employers in the borough employapproximately 16,750 workers out of a total 46,250 civilian employees. The top employers are thefederal, state and local governments, Banner Health (which runs the hospital and a large primary careclinic) and the University. With little difficulty the steering committee can engage the large employerswith a reasonable chance of success. Individual employers will be consulted on the method most likelyto lead to reduced energy consumption by their employees – whether the ‘Energy Pact’ smart phoneapp or the more generic smart phone and web app that allows employees to track their behavior andcorrelate it with a reward. In addition to large employers, the program will pursue smaller employers,through business service groups such as Rotaries and the Chambers of Commerce. Employers can assistwith determining whether competitions amongst their employees, other employers or neighborhoodswould best motivate each group of employees.Rental units make up 41% of housing in the community; 24% of the rental housing is multi-family.Landlords of major rental units will be contacted, based on a list from the Borough AssessingDepartment property data base. Preliminary research suggests varied circumstances for rental housing.Some include the cost of electricity in the rent, some don’t and in some cases the landlord pays up to acertain amount and the tenant pays the rest. Also varied is the energy efficiency of appliances andlighting in the rental units. However, a common denominator in rental housing is the lack of garages.During the Fairbanks winters temperatures frequently dip well below zero and cars are retrofitted withengine block heaters drawing up to 1500 W in order to start. This is referred to as ‘plugging in’, andmany residents plug their cars in overnight when two hours in t

Fairbanks North Star Borough - background. The Fairbanks North Star Borough (FNSB) is located in Interior Alaska, with a total land area of 7,444 square miles - roughly the size of New Jersey. The borough seat is the City of Fairbanks with a population of 32,700; the City of North Pole in also located in the borough with a total population of