Going Green
Energy Incentive Roundtable
PACE Program
What Is It?
PACE – Property Assessed Clean Energy
PACE program is one of the newer mechanisms for
financing energy efficiency and renewable energy
improvement projects.
PACE allows qualifying energy improvements to be
financed through assessments on a property’s real
estate tax bill.
Must be legislatively authorized by the state
Ohio 1 of 26 states plus DC
Senate Bill 232 passed in 2010
Local municipality or township must form a
“special improvement district” (SID)
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Pace financing can be used for:
•
Solar photovoltaic improvements
•
Solar thermal improvements
•
Geothermal improvements
•
Customer-generated energy projects which include
wind, biomass or gasification facilities
•
Energy efficiency improvements
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In SB 232, Energy Efficiency Improvements are
defined as:
“Technologies, products and activities that reduce or
support the reduction of energy consumption, allow
for the reduction in demand, or support the
production of clean, renewable energy and that are
or will be permanently fixed to real property.”
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Public-private partnership between the property
owners and the local government authorizing the SID.
Financing can come from:
Issuance of municipal bonds by local government
Conduit issuer of bonds like an Ohio port authority
Private financing
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100% financing – no upfront cash investment
Long term financing – up to 20 years
No payoff upon sale – assessment remains with
property
Should be able to attract lower interest rates
May be treated as off balance sheet financing
Non-recourse, non-accelerating financing
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Need to convince local government to create an
energy SID
Assessment most likely senior to any debt
Will most likely need approval of lenders and
investors
First deal will take longer and cost more than
anticipated
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Known PACE programs in Ohio:
Cincinnati
Cleveland
Lake County
Toledo
9First multifamily deal using PACE closed last year
in Washington, DC
139 Units
LIHTC, HOPE VI property
Energy improvements cost of $290,000
Rate of 6% with amortization over 20 years with 10
year term
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Dave Evans
Evans Multifamily Services LLC
dave@evansmultifamily.com
Mobile – 717.503.5191
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Why Energy Efficiency?
Helps customers become more efficient, competitive and productive – Waste Less!
Delays new generation and related rate/environmental impacts
Provides the lowest cost alternative to new generation
Creates sustainable “green” jobs in Ohio
State mandates certain EE activity, but AEP Ohio leads way
Business Programs
AEP Ohio has business programs for large business that cover:
Efficient lighting
Efficient HVAC
Efficient motors and drives
Energy Star food service equipment
Data Centers – IT servers and UPS as well as IT cooling systems
New construction and major renovation (non-residential)
Process efficiency
Business Programs
AEP Ohio’s program for small business is called Express Install
Customers with annual usage under 200,000 kWh
Free assessment
Incentives cover an average of 60% of the cost of the energy efficiency measure and are installed by AEP Ohio program contractors
Residential Programs
•
Smart Lighting Program
–
Instant discount on qualifying CFL/LED bulbs and
light fixtures (look for ENERGY STAR label)
–
400 participating retailers in-store and AEP on-line
lighting store
www.aepohio.com/wasteless
• Benefits of using CFL’s instead of incandescent bulbs?
–
CFL’s use approximately 75% less energy
–
CFL’s last almost 10 times longer
Residential Programs
•
Appliance Recycling 50/50/150
– Receive a $50 rebate for Refrigerator Recycling
– Receive $50 rebate on new energy efficient refrigerators
– Save over $150 a year on energy costs
– Free, convenient pickup of your appliance
– Free up space in your home/garage
– Program Requirements:
• Must be 10-30 cubic feet in size
Residential Programs
•
Appliance Rebate Program
– $25 rebate
• ENERGY STAR Television
• ENERGY STAR Dehumidifier
– $50 rebate
• ENERGY STAR Refrigerator
• ENERGY STAR Freezer
• ENERGY STAR Clothes Washer
– $500 rebate
• ENERGY STAR Electric Heat Pump Water Heater
Residential Programs
•
In-Home Energy Program
(Option One – 1 hour)• Customers pay $25 for assessment and installation of the select energy efficiency measures:
– Up to 12 CFLs
– Low flow showerhead (if electric hot water)
– Faucet aerators (if electric hot water)
– LED nightlight
– Pipe wrap for the water heater (if electric hot water)
• Customer will receive a prioritized list of additional improvements that will save energy
• Customer eligible for rebates
Residential Programs
•
In-Home Energy Program
(Option Two – 4 hour)– Comprehensive, four-hour In-home Audit
• $50 for all-electric homes
• Receive same measures as Option One
• Receive more extensive diagnostics and computer modeling of how the home uses energy
• Receive a prioritized list of additional improvements that will save energy that includes a payback analysis
• Eligible for rebates
Residential Programs
•
Online Energy Checkup (Free)
• Customer completes step-by-step profile of their home
• Report shows how home uses energy and ways to save
• Customer receives free energy efficiency measures:
– 5 CFLs and LED nightlight
– Depending on how home is heated, cooled and how water is heated:
» Low flow showerhead, faucet aerators, pipe wrap for the water heater
» Weather-strip, draft stoppers
• Customer eligible for rebates
Residential Programs
•
Community Assistance Program (CAP)
– Customers living on low or fixed incomes (GI at/below 200% of poverty level) may be eligible to receive weatherization assistance or repair services.
– To qualify, customers must be approved for an energy assistance program such as PIPP, HEAP, or HWAP
– Learn more by contacting local community action agency
Residential Programs
•
Energy Star New Homes Program
(Builder Program)–
Provides incentives to builders to help off-set the
cost for building energy efficient homes
–
Homes are built to be 30- 50% more energy efficient
than typical “code built” homes
–
Savings gained from lower utility costs can help
Customer Energy Efficiency Incentives
Megan Melby, Team Leader, New Buildings Demand Side Management
Ohio Housing Conference
Going Green: Energy Incentives Roundtable November 6, 2014
Company Profile
Largest Natural Gas Utility in
Ohio
• Total Customers: 1.4 Million • Miles of Distribution Main:
Over 20,000
• Service Territory: 61 of 88 Counties
• Started doing energy
efficiency for customers in 1983
Columbia Gas History in Energy Efficiency/DSM
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• Since 1983 Columbia Gas of Ohio has provided
Energy Efficiency services to its customers
– 1983 – Residential Conservation Service (RCS) Energy Audits (Operation Home Check)
• 1986 – Columbia Ohio Weatherization Program
• 1987 – WarmChoice®
• 2009 – DSM Portfolio
– 2012 – DSM Portfolio expansion/continuation DSM 1.0 1983 Energy Audits DSM 2.0 1987 WarmChoice DSM 3.0 2009 DSM PortfolioResidential, retrofit programs
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Program/Service Customer Segment/Market Incentives WarmChoiceTM: In-home diagnostic
inspection, no cost weatherization
Income<=150%FPG, High use and/or PIPP, Owners & Landlords
No cost whole house weatherization; $750 contribution from COH toward LL furnace replacement
Tier: Assisted Older homes with gas usage of >=1000 ccf; income >150% FPG and <=80% AMI
$20 energy audit, customer pays $250 for
weatherization, $1000 discount on HE furnace
Tier: Gold "; 60+ years old, <=100% AMI
$20 energy audit, $500 for weatherization, $1000 discount on HE furnace
Tier: Standard "; Income>100% AMI
$50 energy audit, ~30-60% discounts on attic and wall insulation, air sealing, $200-400 high efficiency furnace; higher incentives for
multiple ECMs
Home Performance Solutions: In-home diagnostic energy audit, installation of EE
showerhead and programmable thermostat, if needed, discounts on
Residential, new homes program
Commercial, custom
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Innovative Energy Solutions
Product/Service Customer Segment/Market Incentives
Energy Audit 50%, up to $5000; match/partnerships encouraged ECMs 50%, up to $100k; energy audit or equivalent required; ECMs with SIR >=1
Research/Demonstration
projects 50%, SIR >=1
Experimental Technologies 100%
Building Commissioning,
Re-commissioning 50%, SIR >=1
Commercial for-/non-profit companies/orgs with gas usage of >=3000 ccf/year
New programs and services expanding in 2015
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• Energy Star Portfolio Manager
• Energy Design Solutions
• To find out which Energy Efficiency program is a fit
for your new or existing project, call Columbia Gas of
Ohio and we’ll be happy to work with you…we’ve got
a program for everyone!
Program information
•
WarmChoice
– Call 1-800-952-3037
– or visit ColumbiaGasOhio.com/WarmChoice to find the provider for your county
•
Home Performance Solutions
– Call 1-877-644-6674
– or visit ColumbiaGasOhio.com/HPS to schedule an energy audit
Program Information
•
EfficiencyCrafted Homes
– Call 1-877-771-5506
– or visit EfficiencyCraftedHomes.com
•
Innovative Energy Solutions
– Call 1-855-211-4698
– or visit ColumbiaGasOhio.com/IES
Contact information
• Megan Melby, Team Leader, New Buildings, Demand
Side Management
– Columbia Gas of Ohio – 614-460-4631: Office – 614-565-4944: Cell
– mmelby@nisource.com
Thank you!
National Church Residences
Energy Strategies
Ohio Housing Conference Columbus, Ohio
National Church Residences
Portfolio Statistics
# of properties in US and Puerto Rico 340
# of states with properties 28
# of residents served 24,000
Utility Accounts Overview
# of Managed Utility Accounts 1,122
Annual Managed Utility Spend $15,174,352
Electric 528 Accounts $7,731,746 51% Gas 257 Accounts $2,364,078 16% Water/Sewer 337 Accounts $5,078,528 33%
National Church Residences
Utility Account Overview
National Church Residences
Energy, Engineering, & Procurement
• Capital projects and planning
• Equipment specifications • Project and rehab
management Engineering • Energy management • Energy initiatives • Water conservation • Energy contracts • Benchmarking Energy • HVAC PM • Elevator PM
• Emergency call systems • Appliances • Capital Needs Assessments (CNA’s) National Procurement • Insurance • Premium allocation • Loss control • Safety committee • Maintenance training Risk Management
National Church Residences
Energy Initiatives
• Commodity procurement • Utility allowances • Renewable energy Supply-Side Management • Lighting • HVAC • Water heating • Water conservation • Energy management systems (EMS) Demand-Side Management • Utility data • Payment processing • Invoice validation • Energy budgets • Rate analysis • Benchmarking Utility Data Management • Energy efficiency • Indoor air quality • Clean/healthy living • Waste managementGreen Buildings
National Church Residences
Utility Rebates & Incentives
Given National Church Residences portfolio size and depth, there is no centralized process for researching and obtaining utility rebates and incentives, however the following methods and resources are utilized:
Property managers are encouraged through internal policies to research rebates when replacing energy-related equipment Contractors are requested to include
all rebates and incentives as part of
the work they are doing
Various utility incentive resources
are utilized include DSIRE USA, Energy
Star, and the utility websites
National Church Residences
Utility Rebates & Incentives
There are also several barriers that limit the ability to research and receive rebates and incentives, including the following:
Limited bandwidth within organization restricts ability to research and obtain
incentives
Applications and paperwork, as well as programs themselves,
can be complex and confusing
Utilities offer incentives for simple
energy efficiency measures but incentives for larger
capital items are minimal
National Church Residences
Utility Data Challenges
Identifying the Need for Utility Invoice Management
Large Portfolio
• Many locations in different regions • High combined utility spend
Billing Problems
• Unexplained increased costs • Multiple late fees
Energy Initiatives
• Energy benchmarking • Tracking savings
These are all issues that the National Church
Residences Housing
National Church Residences
Utility Invoice Management
CASS receives invoice from vendor
Invoice is keyed for data, converted to electronic format, and a check is mailed to the vendor
CASS provides a data feed to Ecova
This includes bill image, consumption, dollars spent, and more
Ecova provides a clean view of the CASS data which allows for data reporting and auditing services This is the end product for our utility purposes
National Church Residences
Utility Invoice Management
G/L Data (2007)
• Utility supplier name • Invoice dollars • Invoice date
Required Utility Data (2008)
• Consumption • Late fees
• Meter reading dates • Utility rate
Property Data (2008/09)
• Utility metering type (master, common)
• Type of HVAC & water heating • Building type (high-rise,
townhouse, etc.)
Data Collection
• Past 12 months of invoices • Property data collected through
“Site Maintenance Form”
Data Upload
• Submit data to Cass and Ecova electronically
• Historical data is loaded • Billing information updated
Data Management
• Invoices are automatically paid • Data is audited on a regular
basis
• Data is available for reporting and budgeting services
Integrating Portfolio Data into Data Management System
National Church Residences
Ecova Invoice Manager
•Property information uploaded from data form submitted to Ecova
•Accounts loaded into Ecova for the selected property
•History for an account can be viewed dating back to the first invoice that was loaded
National Church Residences
Invoice Management Savings
Ecova’s auditing services validate billing accuracy and saves National Church Residences significant money by identifying the following billing issues:
•Inappropriate Rates •Meter
Inaccuracies/Leaks •Meter Reading Errors •Late Fees
National Church Residences
Invoice Management Savings
National
Church
Residences
Invoice Management Savings
Cost of Services: $75,000
Carbon reduction of 6.2
million lbs / year
Same as emissions from
o ~400 cars
o ~500 acres of forest
National Church Residences
Lighting Retrofit
Survey Properties • Collected lighting data from properties to determine candidates Select Program • Partnered with Utilities Dynamics to retrofit 105 properties (7,736 units) Retrofit & Evaluate • Savings were evaluated by comparing pre-retrofit kWh to post-retrofit kWh Cost: $1.1 million Savings: $300k/Yr Payback: 3.6 YrsNational Church Residences
Energy Benchmarking
NCR Responsibility for Tenant’s General Use Water Heating Space Heating Space Cooling NCR Properties 1 Y Y Y Y 100 2 Y Y Y 0 3 Y Y Y 0 4 Y Y 0 5 Y Y Y 19 6 Y Y 50 7 Y Y 0 8 Y 65 9 Y Y 0 10 Y 3 11 Y 0 12 93
There are theoretically 12
property profiles depending on what tenant energy is provided by the owner as opposed to the tenant
However, NCR properties fall into 6 profiles
NCR’s benchmarking will be based on the 6 profiles to ensure appropriate
comparison of properties
Using utility data and property profile information, portfolios can be benchmarked for energy
National Church Residences
Energy Benchmarking
National Church Residences
Energy Benchmarking
•Once benchmarking has been completed, energy outliers can be targeted for energy initiatives
•The best way to identify effective energy initiatives with a timely payback is to have an energy audit performed on the
appropriate properties
•HOWEVER, it is highly recommended the auditing company commit to
performing retrofits so that savings can be tied directly to the audit results
Common Reasons for High Resident
Water Consumption
• Resident habits.
• Residents often aren’t aware of leaks or don’t report them when discovered.
• Water conservation tips aren’t provided to residents
(many residents see no relationship between the amount of water they use and their cost to live in the property).
• Older fixtures.
Water Consumption Statistics
• 45% of water use in the average American home occurs in the bathroom with 27% being used by toilets.
• Showering accounts for almost 17% of residential water use indoors. Replacing an older showerhead can save us to 50% in water usage.
• Bathroom and kitchen sinks account for 16% of the water used in the average American home. Replacing older faucet aerators can save up to 40% of water used.
Water Consumption Statistics
How much water does a leaking faucet waste?
• If leaking four drips per minute: -Over a half gallon per day -Over 17 gallons per month -Over 211 gallons per year
• If leaking a steady stream (5 drips/second): -Over a 43 gallons per day
-Over 1,250 gallons per month -Over 15,768 per year
National Church Residences
Water Conservation Initiative
In order to most effectively tackle water efficiency initiatives, it is best to target high
consumers within a portfolio. Benchmarking is critical in identifying these properties and ensuring that both savings and water reduction are being maximized.
Water Benchmarking Process
Collect at least 1 year of water and sewer bills for every property
The average of all properties consumption is the
benchmark
A top-down approach should be used for retrofits targeting high
consumers first
Once retrofits are complete, compare post-retrofit data to
pre-retrofit data to determine savings Investigate anomalies
for data errors or inconsistencies and
correct or remove Standardize annual
consumption into gallons per person per
National Church Residences
Water Conservation Initiative
2011 Water Consumption Benchmark:
73.04 G/P/D
Abnormally high consumption is typically driven by high irrigation usage, water leaks, or meter errors
Abnormally low consumption is typically driven by meter errors and data inconsistencies
National Church Residences
Water Conservation Initiative
2011 Water Consumption Benchmark:
73.04 G/P/D
Identifying Retrofit Candidates
1. Determine outlier parameters
• In this case, National Church Residences chose properties 25% higher than the benchmark
2. Evaluate costs vs. savings
• Decide a target payback and ensure targeted properties will achieve organizational goals
Water Consumption
National Church Residences
Water Conservation Initiative
Phase 1 – Pilot
Surveyed select properties and evaluated 12-month water history
Evaluated • 13 properties • 1,401 units Implemented •1 property •167 units Financials •Cost: $24,000 •Savings: $26,000 •Payback: 11 months Phase 2 – Beta
Surveyed select properties based on location (high water rates) and age
Evaluated
•GA, LA, and MI •40 properties •5,265 units Implemented •4 properties •692 units Financials •Cost: $54,213 •Savings: $81,834 •Payback: 8 months Phase 3 – Roll-Out
Benchmarked portfolio for outliers; targeted sites w/ < 12 mo. payback
Evaluated •All properties •170 properties •13,770 units Implemented •32 properties •2,822 units Financials •Cost: $201,700 •Savings: $332,285 •Payback: 7 months
National Church Residences
Water Conservation Initiative
2011 Water Consumption Benchmark:
73.04 G/P/D
2013 Water Consumption Benchmark:
64.04 G/P/D
Portfolio Savings Analysis
Properties Implemented: 37
Total Project Cost: $268,243 Total Annual Project Savings: $440,119 Average Payback: 7 Months
Legend
Pre-Retrofit Post-Retrofit
Other Factors Impacting
Water Consumption
While retrofitting aerators,
showerheads, and toilets is the easiest and most cost-effective solution to water management, there are other factors that can drive high consumption.
Anomalies
Other Factors Impacting
Water Consumption
National Church Residences has developed the following strategies to better deal with water leaks, faulty equipment, meter errors, irrigation management, and other factors that contribute to high water consumption
Data Management Services Organizational Energy Policy
•Utilizes third-party data management company for utility data analysis
•Auditing services monitor consumption and costs for anomalies and work with property to determine and resolve issue
•Quickly identifies water leaks, faulty equipment, meter and billing errors, etc.
•Addresses all aspects of energy that would impact a property
•Specifically addresses water management and provides guidelines for checking for leaks, installing low-flow equipment, and sets irrigation standards
