2014 Energy Efficiency Commercial & Industrial Program Update

2014 Energy Efficiency Commercial &

Industrial Program Update

A Joint Presentation by:

The Conservation and Load Management Departments of

Agenda

• Welcome

• C-PACE

• Budget Update

• Project Submission Process

• Program Overview

Energize Connecticut

• A partnership of the Energy Efficiency Fund, the Clean Energy Finance and Investment Authority (CEFIA), and local electric and gas utilities

• Energy efficiency is a valuable resource for Connecticut, it:

– Reduces air pollutants and greenhouse gases – Saves customers money

C-PACE:

A FINANCING TOOL FOR BUILDING

OWNERS

Help ensure Connecticut’s energy security and community prosperity

by realizing its environmental and economic opportunities through

clean energy finance and investments.

Support the Governor’s and legislature’s energy strategy to achieve cleaner, cheaper and more

reliable sources of energy while creating jobs and supporting local

economic development

Property Assessed Clean Energy

▪ An innovative financing structure that enables commercial, industrial, and multi-family property owners to access financing for qualified energy

upgrades and repay through a benefit assessment on their property tax.

Private capital provides 100% upfront, low-cost, long-term funding Repayment through property taxes

A senior PACE lien is put on the property and stays regardless

C-PACE Addresses Key Barriers

Near term plan to sell? Lack of funding?

Cannot assume more debt? Insufficient payback/ROI? Split incentives?

Uncertain savings/technical expertise?

Tax obligation fixed to property 100% upfront, 20 year financing Assessments may qualify as OPEX Positive cash flow in year 1

Municipalities Opted into C-PACE

The C-PACE Process

• 1. Building owner

engages contractor to develop scope of work; works with utilities

(CEEF) to incorporate incentives

• 2. Owner applies to C-PACE program at www.c-pace.com

The C-PACE Process

• 7. Owner remits

payment to municipality

as benefit assessment

charge

• 8. Municipality remits

PACE assessment to

CEFIA

Program Snapshot: First Year

▪ 75 towns on board

▪ 80% of the CT market eligible

▪ 200+ contractors trained

▪ 15 qualified capital providers

▪ 113 Projects in Pipeline

– Est. $50 million in projects

▪ $40M in CEFIA capital

– $20 million approved

Case Study: Comprehensive Energy

Efficiency

Location: 855 Main Street, Bridgeport, CT Building Type: Large Office (>50,000 SF) Building Size: 112,000 Square Feet

Total Project Cost: $2,462,000 Utility Incentives: $469,317 C-PACE Financing: $1,992,683 Term: 20 Years

Annual Interest Rate: 5.5%

Case Study: Solar and Energy

Efficiency

Location: 100 Roscommon Drive,

Middletown, Building Type: Large Office (>50,000 SF)

Building Size: 81,368 Square Feet Total Project Cost: $2,911,801 Utility Incentives: $387,885 C-PACE Financing: $2,513,916 Term: 20 Years

Annual Interest Rate: 5.5%

Case Study: Solar Project in Hartford

Location: 41 Walnut Street, Hartford, CT Building Type: Manufacturing

Building Size: 34,500 Square Feet Total Project Cost: $170,000

Utility Incentives: $10,660/year ZREC C-PACE Financing: $145,000

Term: 20 years

Annual Interest Rate: 5.5%

Case Study: Boiler Replacement &

Non-Profit

Location: 166 Capitol Avenue, Hartford, CT Building Type: Entertainment / Culture Building Size: 95,000 Square Feet Total Project Cost: $650,000

Incentives: $16,000 CL&P incentive; $250,000

Clean Energy Business Solutions grant

C-PACE Financing: $384,000 Term: 20 Years

Annual Interest Rate: 5%

860.257.2888

[email protected]

WWW.C-PACE.COM

Director, C-PACE

Program Funding

• Program funding:

– Electric and natural gas programs are funded through utility bills and approved by the Public Utilities

Regulatory Authority

– Forward Capacity Market

2014 Program Budgets & Caps (UIL)

Project caps, % Committed

* as of Feb. 28 2014

Budgets

Committed*

UI C&I $ 15.23 M 26%

CNG $ 3.72 M 10%

2014 Budgets & Goals (UIL)

* Electric goals are based on annual kWh saved

* Gas goals are based on lifetime ccf saved

Budget

Goal*

C&I $ 11.4 M 33.7 MWh

SBEA $ 3.8 M 7.95 MWh

CNG * $ 3.7 M 10.47 Lccf

2014 Program Budgets & Goals (NU)

Incentive Budget Committed* Savings

Goal

Large C&I $ 38.4 M 48% 130 GWh

SBEA $ 13.5 M 42% 41 GWh

YGS $ 4.3 M 39% 13.8 M

Lccf

2014 Project Incentive / Financing Caps

Cumulative Cap* per Federal Tax Id

$2,000,000 $2,000,000 $2,000,000 $2,000,000 Municipal Finance

Cap (project /

cumulative total per municipality)

$100,000/ $400,000

$100,000/

$500,000 _{NA NA}

Gas Projects requiring PURA Approval**

≥ $100,000 ≥ $100,000 ≥ $100,000 ≥ $100,000

Noteworthy Items

• Customer Account Number(s) and Utility

• Customer Information / W-9

• EMS Systems: Submissions, strategies

• VFD Systems

Project Submission Process

NEW CONSTRUCTION AND

EQUIPMENT

New Construction & Equipment

• Captures electric and natural gas

savings where they are most

cost-effective: during design

• Covers up to

:

Prescriptive Rebates

• HVAC Unitary

Equipment

• Heat pumps

• Infrared heaters

• Water heaters

• Food service equipment

• Gas heating equipment

Whole Building Performance

• Alternative to the prescriptive path for new building construction and renovations

• Incentives are paid on the basis of the % improvement over baseline (code) on a cost savings basis

• Incentives prorated when fuels other than electricity or natural gas are involved

• Involves building energy simulation modeling

Whole Buildings (cont.)

• Incentive Matrix

% Better than Code Incentive/sf

10% to 15% $0.50

15.1% to 20% $1.00

20.1% to 25% $1.75

25.1 to 30% $2.50

Project Submission

– Data Collection

– COMcheck lighting report or detailed fixture list

– Square footage – Space by space or building area methods as appropriate

– Building area baselines according to ASHRAE 90.1-2007 with Addenda

– Mechanical and electrical drawings and equipment schedules – Product cut sheets with efficiency information

• Example AHRI Certificate of Product Ratings

Project Submission

– Custom Measures

• Baseline Equipment vs. High Efficiency

– What would the customer install in the absence of incentives if first cost were the top priority?

– Baseline equipment must satisfy code (if applicable), or be standard industry practice

Project Submission

– Custom Measures

• Incremental Cost – the difference in material cost

between baseline and high efficiency equipment

• Savings Estimate

– Annual kWh, Annual ccf

– Peak summer and winter kW (electric) – Peak winter ccf (natural gas)

• Miscellaneous

New or Replacement Equipment

• Incentive is the lesser of:

– 75% of incremental cost;

– Prescriptive incentive if applicable; or – The greater of:

CL&P

UI

$0.35/kWh

$0.25/kWh

New or Construction / Major Renovations

• Incentive is the lesser of:

– 95% of incremental cost;

– Prescriptive incentive if applicable; or – The greater of:

CL&P

UI

$0.35/kWh

$0.25/kWh

New or Replacement Equipment

• Incentive is the lesser of:

– 75% of incremental cost;

– Prescriptive incentive if applicable; or

YGS

CNG & SCG

New or Construction / Major Renovations

• Incentive is the lesser of:

– 95% of incremental cost;

– Prescriptive incentive if applicable; or

YGS

CNG & SCG

HVAC

• CT Cool Choice ($ per ton)

– Unitary / splits / ductless units (units ≤ 30 tons) • $50 - $120 / ton (see rebate)

– Unitary / splits / ductless units (> 30 tons) • Custom

• Chillers & VFDs

– Custom

Prescriptive Rebates (cont.)

Natural Gas Infrared Radiant Heaters (Low Intensity and High Intensity)

($ per unit)

Prescriptive Rebates (cont.)

Equipment Type Qualification $ per unit

Condensing Gas Boilers (Outdoor Temperature Reset Required)

< 300 Input MBH, AFUE must be 92% or greater $8.00 / Input MBH

300 - 2,500 Input MBH, Thermal Efficiency must be 92% or greater

Non-Condensing Gas Boilers < 300 Input MBH, AFUE must be 85% or greater $4.00 / Input MBH

300 - 2,500 Input MBH, Thermal Efficiency must be 82% or greater

Condensing Gas Furnaces AFUE / Combustion Efficiency must be 92% or greater $4.00 / Input MBH

Condensing Gas Unit Heaters Thermal Efficiency must be 90% or greater $2.00 / Input MBH

Gas Fired Absorption Heat Pumps YGS only

Prescriptive Rebates (cont.)

Food Service Equipment ($ per unit)

ENERGY STAR® _{Gas Fryers $750/unit}

Prescriptive Rebates (cont.)

Food Holding Equipment ($ per unit)

Electric Hot Food Holding Cabinets $650 - $900/unit

Sanitation Equipment ($ per unit)

Pre Rinse Spray Valve $40/unit Low Temp Electric or Natural Gas

Dishwasher

$125 - $1200/unit

High Temp Electric or Natural Gas Dishwasher

Prescriptive Rebates (cont.)

Refrigeration Equipment ($ per unit)

ENERGY STAR Refrigerator (solid door, self contained)

$175 - $300/unit

ENERGY STAR Freezer (glass door, self contained)

$1150 - $1975/unit

ENERGY STAR Freezer (solid door, self contained)

$125 - $500/unit

ENERGY STAR Ice Machines $50 - $100/unit

Clothes Washing Equipment ($ per unit)

ENERGY STAR Commercial Clothes Washers

EXISTING BUILDINGS

Existing Buildings

• Incentives to replace functioning equipment with

more energy-efficient options

Covers up to:

• 40% of installed cost

– 35% common lighting upgrades

– 40% high-end lighting

technologies, EMS, Custom

Comprehensive Initiative

• The Comprehensive Initiative is designed to

increase the depth and breadth of energy efficiency

projects being implemented by customers

• Criteria:

– Energy savings from at least two end uses (gas and/or electric) and at least two measures

Project Submission

– Custom Measures

• Installed Cost – include material cost, labor cost,

equipment rental, etc.

• Savings Estimate

– Annual kWh, Annual ccf

– Peak summer and winter kW (electric) – Peak winter ccf (natural gas)

• Miscellaneous

Required Documentation For LEDs

• Make and Model number of the LED placed on the data collection form.

Required Documentation for LEDs

• Screenshot or printout of the DLC or Energy Star listing (certificate of Energy Star or DLC listing also acceptable)

Standard Interior & Exterior Lighting

• Incentive is the lesser of:

– 35% installed cost – The greater of:

CL&P

UI

$0.30/kWh

$0.30/kWh

High Performance Lighting

• Incentive is the lesser of:

– 40% installed cost – The greater of:

CL&P

UI

$0.30/kWh

$0.30/kWh

Custom Non-Lighting

• Incentive is the lesser of:

– 40% installed cost – The greater of:

*Prescriptive values – if applicable * Gas $3.50/ccf

CL&P

UI

$0.30/kWh*

$0.30/kWh*

Custom Natural Gas

• Incentive is the lesser of:

– 40% of installed cost;

– Prescriptive incentive if applicable; or

YGS

CNG & SCG

Energy Management Systems (EMS)

• Incentive is the lesser of:

– 40% installed cost – The greater of:

CL&P

UI

$0.30/kWh*

$0.30/kWh*

$800/summer peak kW $800/summer peak kW

Small Business Energy Advantage

• No-cost energy assessment • 22 utility approved contractors • Eligibility criteria

– Existing business, municipal, and government customers – Average 12-month peak demand between 10 kW and 200 kW

• All possible energy efficiency measures • Incentive levels same as Large C&I

• On-bill, 0% financing to qualifying customers • Pay nothing upfront

State of CT - Leading By Example

• State’s umbrella of energy efficiency options

– Energy Performance Contracting (ESPC)

• Standardized, 3 agencies in process

– LEAD by Example – Bond funding = $15 M

• Many projects – funds essentially committed

– Master Agreement - SBEA

• CL&P has agreement in place, UI in process • designed for smaller agency facilities

Financing

Type Min Max Rate Term

Max

Pymt Source

SBEA $500 $100,000 0% 4 yrs On-Bill Utility Muni N/A $100K / $500K 0% 4 yrs On-Bill Utility C&I $2,000 $1 Million

(1st _$100,000 w/ subsidy)

2.99% or 4.99%

5 yrs 3rd _{Party 3}rd _Party

PURA Loan (>50 kW savings) $1Million 1% below rate/no more than prime

Connecticut Hospital Association (CHA)

• Helps Connecticut hospitals finance major

energy-efficiency projects

– Limited to CL&P service territory – Limited to electric energy efficiency – Contact: Doug Kayer

Financing Contacts

• CL&P & YGS; Anne Marie Jensen

– Phone: 860-665-4760

– E-mail: [email protected]

• UI, CNG & SCG; Christine Koch

– Phone: 203-499-2091

C-PACE

• Commercial Property Assessed Clean Energy

• Enables commercial, industrial, and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their

property tax

• Administered by Clean Energy Finance and Investment Authority (CEFIA)

Genevieve Sherman

BUSINESS & ENERGY

SUSTAINABILITY (BES)

Business & Energy Sustainability

• The next level after all or most major capital improvements have been completed

– Maximize operational strategies with existing capital equipment & people

Process Reengineering for Increased

Manufacturing Efficiency (PRIME)

• Lean Manufacturing Techniques and Kaizen process • Focuses on industrial manufacturing processes

• Benefits:

– Increased productivity

– Reduced per unit energy usage

– Reduced waste of material, time and transportation – Reduced inventory requirements

• Utility approved consultants:

– Events 1 & 2: no cost to the customer – Events 3 & 4: shared cost - 50%/50%

Operations & Maintenance

• Improves electrical and natural gas efficiency

through changes and repairs that can be classified

as maintenance or operational procedures rather

than capital investments

• Not intended to cover normal preventive

maintenance, lube, oil filter, belts, etc.

• Incentives available for:

Retro Commissioning (RCx)

• Optimizes operation of customer’s facility without

installing capital equipment

• Requirements:

– Min. 100,000 square feet

– Fully functioning Direct Digital Control (DDC) Energy Management System (EMS) that can conduct

trending & reporting

WRAP UP

Training & Outreach

Upcoming topics:

• Becoming an LED World

• Pumping System Optimization

• Compressed Air Challenge – Level I

• HVAC Ventilation Design

Check the Companies’ websites or EnergizeCT.com

for Training/Seminar updates and registration:

Tax Incentives

• Energy-efficient commercial buildings tax deduction

• Renewable-energy tax credits and grants

• Qualifying advanced energy project investment tax

credit

• More Info:

Important Reminders

• Contact us early

• Agreement(s) must be signed prior to purchasing energy-efficient equipment (except rebates)

• Agreement milestone dates- very important

– Customer must request an extension

• Project scope changes

CL&P Contacts

• New Construction/Equipment: Rich Asselin (860) 665-3292 • Existing Buildings: Glen Eigo (860) 665-5084

• Lighting Express: Glen Eigo (860) 665-5084

• CoolChoice HVAC Rebates: Mark Foley (860) 665-5031

• Business & Energy Sustainability: Dave Mc _{Intosh (860) 665-3531}

• Small Business: Randy Vagnini (860) 665-4753 • Financing: Anne Marie Jensen (860) 665-4760

UIL Contacts

• New Construction (ECB): Pete Aufdemorte (203) 926-4715 • Retrofit (EO) : Pete Aufdemorte (203) 926-4715

• Small Business : Dennis O’Connor (203) 499-3715

• Business & Energy Sustainability: Amy McLean Salls (203) 499-3578 • Cool Choice (CCH) : Will Riddle (203) 499-2407

Web Information

EnergizeCT.com

• CL&P www.cl-p.com

• UI www.uinet.com

• Yankee Gas www.yankeegas.com

• CNG www.cngcorp.com

• SCG www.soconngas.com

Questions