2012 Energy Efficiency Fund Commercial & Industrial Program Update

Transcription

1 2012 Energy Efficiency Fund Commercial & Industrial Program Update A Joint Presentation by: The Conservation and Load Management Departments of Connecticut Light & Power and United Illuminating

2 Welcome Jeff Gaudiosi, Esq. Connecticut Energy Efficiency Fund Vice Chair Representing the Manufacturing Alliance of Connecticut

3 C&I Program Vision The overall Vision for the future evolution of the Energy Efficiency Fund s C&I programs is to cost-effectively support a sustainable and competitive business climate for Connecticut s businesses, state and municipal facilities, and industries based on bottom-line solutions for economic competitiveness, environmental stewardship, and social responsibility.

4 Energy Efficiency & Background Energy Efficiency Fund history Created in 1998 by Connecticut State Legislature Natural gas programs included in 2005 Energy efficiency is a valuable resource for Connecticut, it: Reduces air pollutants and greenhouse gases Saves customers money Reduces need for more energy generation Creates jobs Program funding: Electric customers pay 3 mills per kilowatt-hour Natural gas programs are funded through gas utility bills and approved by the Public Utilities Regulatory Authority

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6 Agenda Housekeeping C&I 2012 Program Budgets/Caps C&I 2012 Programs Training Important Reminders Contacts Questions?

7 2012 C&I Program Incentive Budgets Incentive Budget % Committed CL&P C&I $19.2 M ~ 45% CL&P SBEA $ 8.6 M ~ 35% UI C&I $ 4.1 M ~ 5% UI C&I SBEA $ 1.6 M ~ 5% YGS $ 5.0 M ~ 20% CNG $ 3.4 M ~ 1% SCG $ 3.0 M ~ 1% DPUC Approved (Dockets ) Includes CEEF, RGGI and ODR Funds

8 2012 Program Highlights Companies adjusting incentives and energy savings caps More uniformity between electric and gas Continued transparency and simplicity Revised comprehensive program More to come Performance contracting Code training

9 2012 Project Incentive Caps Program Caps UI Retrofit CL&P Retrofit UI Lost Opportunity CL&P Lost Opportunity Cumulative Cap* per Federal Tax Id Municipal Finance Cap (project/cumulative total per municipality) Gas Projects requiring PURA Approval $750,000 $750,000 $750,000 $750,000 $100,000/ $400,000 $100,000/ $500,000 NA NA $100,000 $100,000 $100,000 $100,000 *Program & Cumulative Incentive Caps not applicable to natural gas projects

10 Commercial & Industrial Programs New Construction, Major Renovation & Equipment Replacement Business & Energy Sustainability (BES) Retrofit Projects & Small Business Financing

11 Energy Conscious Blueprint Program New Construction Major Renovation Equipment Replacement

12 Energy Conscious Blueprint Program Captures electric and natural gas savings where they are cost-effective; during design Provides incentives for installing: Energy-efficient lighting* Lighting controls HVAC equipment Motors Refrigeration Process equipment Gas boilers VFDs * Lighting projects use watts/sq.ft. calculations relative to ASHRAE baselines

13 Energy Conscious Blueprint Program Covers up to 95% of the incremental cost of installing measures Prescriptive or Whole Building Performance incentives are used where applicable Subject to utility caps

14 ECB Measures Lost Opportunity Measures hand out General lighting Custom lighting Non-lighting Custom process equipment new or replacement Custom non-process equipment replacement Custom new construction

15 General Lighting Tier 1- Lighting design is below code by >10%: Incentive will be the lesser of $0.15 sq.ft or $50 per fixture Tier 2 - Lighting design is below code by >30%: Incentive will be the lesser of $0.50 sq.ft or $50 per fixture Occupancy sensors receive $20 per fixture controlled however: Buildings over 5,000 sq.ft. must have lighting control strategy (as required by code) Incentives will be offered for occupancy sensors on projects that have another control system that turns them on/off (Energy Management System) * Lighting projects use watts/sq.ft. calculations relative to ASHRAE baselines

16 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 caps apply to VFDs

17 Compressors Incentive is the lesser of: 75% incremental cost Prescriptive Caps 5 hp < 40 hp $310/hp 40 hp < 50 hp $240/hp 50 hp 100 hp $205/hp 100 hp Custom - Process The greater of: CL&P $0.30/kWh $1,000 /summer peak kw $0.25/kWh UI $700 /summer peak kw

18 Custom - Process Equipment New or Replacement Incentive is the lesser of: 75% incremental cost The greater of: $0.50/kWh* CL&P $1,100/summer peak kw $0.25/kWh* UI $700/summer peak kw 1.5 year payback cap *Gas $6.00/ccf

19 Process Equipment Example (a) (b) (c) (d) Customer Incremental Cost Customer Annual kwh Savings Customer kw Savings Customer Rate $250, , $0.15/kWh Incentive Calculation (e) 75% Incremental (a * 0.75) $187,500 (f) Unit Rate Cap ($0.50/kWh) (b*$0.50) $250,000 or Unit Rate Cap ($1,100/kW) (c*$1,100) $143,000 (g) Customer Payback a [(b*d) * 1.5] $137,500 Incentive = lesser of: e, f, or g = $137,500

20 Custom Non Process Equipment New or Replacement Incentive is the lesser of: 75% incremental cost The greater of: $0.50/kWh* CL&P $1,100/summer peak kw $0.25/kWh* UI $700/summer peak kw *Gas $6.00/ccf

21 Custom New Construction (Non-Whole Building Performance) Incentive is the lesser of: 95% incremental cost The greater of: $0.35/kWh* CL&P $1,100/summer peak kw $0.25/kWh* UI $700/summer peak kw *Gas Space Heating $6.00/ccf Non Space Heating $5.00/ccf

22 Custom New Construction (Whole Building Performance) Model Subsidy Base or Code Building Model $1,000 High Performance Building Model $5,000 Maximum Building /System Compliance (Installation) Whole Building Incentive (% better than code/$/sq ft) 10% - 15% 15.1% - 20% 20.1% - 25% 25.1% - 30% > 30% Certification Bonus $0.50/ sf $1.00/ sf $1.75/ sf $2.50/ sf $3.00/ sf LEED Silver / 2 Green Globes $ 5,000 LEED Gold / 3 Green Globes $10,000 LEED Platnium / 4 Green Globes $15,000

23 Other Prescriptive Caps Cool Roofs EMS High Performance Window Glazing Gas Boilers (non-condensing) Gas Boilers (condensing) Gas Storage Water Heaters $0.20/sf $500/point $2.00/sf $4.00 / input MBH $8.00 / input MBH Varies by Input BTU

24 Prescriptive Rebates Gas Food Service Equipment ($ per unit) Energy Star Gas Fryers Energy Star Gas Steamers Energy Star Gas Convection Ovens Energy Star Gas Griddles Gas Infrared Heaters Up to 50,000 BTU/hr 50,000 BTU/hr to 150,000 BTU/hr 150,000 BTU/hr to 175,000 BTU/hr 175,000 BTU/hr $750/unit $750/unit $500/unit $450/unit $500/unit $550/unit $650/unit $850/unit

25 Business & Energy Sustainability (BES) Retro Commissioning PRIME Business Sustainability Challenge O&M Services Training & Outreach

26 Business & Energy Sustainability (BES) The next level after all or most major capital improvements have been completed Maximize operational strategies with existing capital equipment & people Develop management practices and possibly electronic energy dashboard reporting

27 Retro Commissioning (RCx) Optimizes operation of customer s facility without installing capital equipment through technical, engineering and implementation support Requirements: Min. 100,000 sq.ft. Fully functioning Direct Digital Control (DDC) Energy Management System (EMS) that can conduct trending & reporting ENERGY STAR Portfolio Manager benchmark See utility web site for program application

28 Measures Provides incentives for investigating & implementing strategies such as: Resetting the chiller discharge temperature Resetting pump and fan speeds Adding/improving demand ventilation sequences Optimizing AHU supply/return fan static pressure Evaluate humidity set points in data centers Boiler sequence optimization Enhance sequence of operations for mechanical equipment

29 Incentives RCx Survey $1,000 RCx Investigation Study 50 %* Same incentive structure and utility caps as Energy Opportunities Not eligible for the Comprehensive Initiative Uses Qualified RCx Engineers which are not installation contractors *If identified measures are implemented and there are sufficient energy savings, 100% of the Investigation Study cost may be covered.

30 PRIME Process Reengineering for Increased Manufacturing Efficiency Lean Manufacturing Techniques and Kaizen process Focuses on industrial manufacturing processes Benefits: Increase productivity Reduce per unit energy usage Reduces waste of material, time and transportation Reduces inventory requirements Utility approved contractors: Events 1 & 2: no cost to the customer Events 3 & 4: shared cost - 50%/50% Subject to Utility Cap

31 Business Sustainability Challenge (BSC) A primary component of customer s transformation to greater efficiency and sustainability Employs a holistic approach Training, education and working with medium to large customers Goal: Integrate sustainability into business practices and manage energy, carbon, waste and water as valuable resources

32 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 for: normal preventive maintenance repetitive procedures to subsidize major equipment purchases Incentives available for Repair or replace defective steam traps, condensate return, compressed air systems and DDC Energy Management System tune-ups Incentives align with EO program non-lighting measures

33 Training & Outreach Example of topics: Energy Code Performance Contracting Lighting Design and Technologies Infrared/Radiant Heating Portfolio Manager Check CL&P Training Calendar for updates and registration:

34 Break

35 Retrofit Programs Energy Opportunities (EO)

36 Energy Opportunities (EO) Encourages customers to replace functioning equipment with more energyefficient options Provides incentives to customers who install electric and/or natural gas measures Prescriptive incentives are used where available

37 EO Measures Retrofit Measures handout Lighting Measures Non-Lighting Measures Comprehensive Project Initiatives Other Prescriptive measures

38 Standard Interior & Exterior Lighting Incentive is the lesser of: 35% installed cost The greater of: $0.30/kWh CL&P $0.25/kWh UI $1,000/summer peak kw $800/summer peak kw

39 High Performance Lighting Incentive is the lesser of: 40% installed cost The greater of: $0.40/kWh CL&P $0.25/kWh UI $1,000/summer peak kw $800/summer peak kw

40 EO Custom Lighting Incentives Can be earned if redesign of lighting system exceeds ASHRAE by 15% Must use watts/sq.ft. methodology Must submit dimensioned floor plans Express Lighting Rebate Prescriptive dollar per unit ($10 - $50 / Fixture) Now includes some qualified LEDs

41 Custom Non-Lighting Incentive is the lesser of: 40% installed cost The greater of: $0.30/kWh* CL&P $1,000/summer peak kw $0.25/kWh* UI $800/summer peak kw Prescriptive values apply if applicable *Gas $3.50/ccf

42 Energy Management Systems (EMS) Existing EMS may be upgraded or replaced regardless of system age No incentives will be offered for repair or replacement of pneumatic controls with pneumatic controls

43 Energy Management Systems (EMS) Incentive is the lesser of: 40% installed cost The greater of: $0.30/kWh* CL&P $1,000/summer peak kw $0.25/kWh* UI $800/summer peak kw Max. $500/Point *Gas $3.50/ccf EMS incentives are prorated between gas and electric based on energy savings by fuel

44 Solid State Lighting Light Emitting Diodes - LEDs

45 Eligible LED Products LED products eligible for incentives are categorized into two groups: Group A ENERGY STAR Group B DesignLights Consortium Each group covers different LED product types LED products must be listed in order to qualify for incentives

46 Group A ENERGY STAR Qualified Commercial LED Lighting Recessed, surface and pendant-mounted downlights Under-cabinet and shelf-mounted task luminaires Cove Bollards Qualified LED Light Bulbs Omnidirectional lamps: A, BT, P, PS, S, T Decorative lamps: B, BA, C, CA, DC, F, G Directional lamps: BR, ER, K, MR, PAR, R

47 Group B DesignLights Consortium (DLC) Qualified Products List (QPL) Outdoor pole/arm mounted area and roadway Outdoor pole/arm mounted decorative Outdoor wall-mounted area Parking garage Track or mono-point directional lighting Refrigerated case lighting Linear panels 2x2 troffer ONLY High-bay and low-bay fixtures for C&I buildings High-bay aisle lighting Four-foot Linear Replacement Lamps

48 Key Takeaways for LEDs Why provide incentives for products only on qualified lists? Encourage suppliers to get listed on ENERGY STAR or DesignLights Consortium All lists are updated frequently

49 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 No single measure can represent > 85% of the project s value based on annual $ savings

50 Comprehensive Initiative Incentive is the lesser of: 50% incentive adder* The greater of: CL&P UI $0.40/kWh $1,500/summer peak kw $0.40/kWh $1,000/summer peak kw PLUS $6.00/CCF (ECB Gas Measures) or $3.50/CCF (EO Gas Measures)** *To be prorated between electric and gas projects based on annual $ savings **Only Applicable if gas measure(s) included in project. Note: Incentive not to exceed 50% of installed cost

51 Comprehensive Project Example EXAMPLE - Installed Three Measures Total Project Installed Cost = $42, Measure Fuel End Use Measure Incentive Calculated Annual Energy Savings Calculated Demand Savings Estimated Annual $ Savings M1 - Lighting Electric Lighting $8, ,000 kwh 6 kw $3, M2 - RTU Electric Cooling $ ,800 kwh 9 kw $1, M3 - Gas Boiler Gas Heating $2, CCF 7 CCF $1, Totals $10, ,800 kwh 15 kw $5, CCF 7 CCF Value based on GREATER OF ($0.40 / kwh or $1, / kw) PLUS $6.00 / CCF (ECB Gas) Energy Value M1 - Lighting Electric Lighting $9, M2 - RTU Electric Cooling $5, Total $14, M3 - Gas Boiler Gas Heating $4, Demand Value $9, $13, $22, N/A $4, PLUS $22, Total Value of Project Caps = $27, % Incentive Adder = $5, Measure Incentives + 50% Adder = $16, % of Project Value Based on Est. Annual $ Savings Bonus Incentive by Measure M1 - Lighting Electric Lighting 54.01% $2, M2 - RTU Electric Cooling 28.81% $1, M3 - Gas Boiler Gas Heating 17.18% $ Total Bonus Total Incentive Project Qualifies as Comprehensive - No Single Measure > 85% of Project's Value Total Incentive Including Bonus Not To Exceed 50% of Total Project Installed Cost Illustrative example using CL&P / Yankee Gas Values

52 Retrofit Programs Small Business Energy Advantage (SBEA)

53 Small Business Energy Advantage Provides cost effective, turnkey energy-saving and retrofit opportunities for small commercial and industrial businesses CL&P and UI customers up to 200 kw average monthly demand are eligible CL&P municipal / government agency facilities up to 200 kw average monthly demand are eligible Utilizes pre-approved contractors to provide a no cost energy assessment and installation of energy-efficient measures

54 Small Business Energy Advantage Provides incentives to customers who install: Energy-efficient lighting and/or controls Refrigeration controls HVAC equipment replacements Compressed air systems Programmable T-stats VFD Various Gas measures Offers 0%, on bill financing for qualifying customers

55 Financing SBEA Municipal Small C&I CHA PURA

56 SBEA Financing 0% interest loans to SBEA program participants Available for electric and some prescriptive gas measures On-bill financing Electric utilities provide funding source Maximum loan amount of $100,000 Maximum loan term CL&P: 3 years UI: 4 years Customer size Up To 200 kw New construction/major renovation projects are not eligible Requires good credit history with utility

57 Municipal Financing 0% interest loans to electric municipality participants Available for electric and gas measures On-bill financing Electric utilities provide funding source Maximum loan amount of $100,000 per account CL&P: New municipal cap of $500,000 per municipality per year UI: New municipal cap of $400,000 per municipality per year Maximum Loan term CL&P: 3 years UI: 4 years New construction/major renovation projects are not eligible Requires good credit history with utility

58 C&I Loan Program Low interest loans to qualifying participants Available to CL&P & UI customers 3 rd party lender Who qualifies In business at least 3 years Qualify via lender s business credit review process New construction/major renovation projects are not eligible Loan amount between $2,000 and $250,000 providing interest subsidies on the first $100,000 Maximum loan term not to exceed 5 years

59 Other Financing Opportunities Connecticut Hospital Association (CHA) Helps Connecticut hospitals finance major energy-efficiency projects Contact: Bob Sandler (203) Utility companies (C&LP and UI) mandated by PURA and Public Act to offer subsidized loans to C&I customers for installing distributed generation equipment & energy efficiency projects that reduce system demand One percent below customer s applicable rate or no more than the prime rate Minimum loan amount $1,000,000 3 rd party lender - Bank of America Contact: Cathy Raybon VP, Operation Manager Phone # cathy.r.raybon@baml.com

60 Financing Contacts CL&P & YGS; Gentiana Darragjati Phone: UI, CNG & SCG; Roy W. Haller Phone: rd Party Univest Capital; Christopher Bakos Phone: (ext. 114) cbakos@univestcapitalinc.com

61 Wrap Up Other Programs Tax Incentives Reminders Contacts

62 Energy Efficiency Partners Program Public Act , An Act Concerning Electricity and Energy Efficiency Funding for the deployment of demand-side management technologies that conserve energy and reduce peak demand Approved Energy Efficiency Partners Approved Energy Efficiency Partners Technologies Example Technologies Ice Storage Gas Chillers Direct Digital Control/Bldg Automation Solar Assisted Air Conditioning HVAC Duty Cycle Controls $950/Ton $300/Ton $165/kW $318/Ton $46/Ton Visit the Public Utilities Regulatory Authority website for details and applications:

63 Tax Incentives Energy-efficient commercial buildings tax deduction Renewable-energy tax credits and grants Qualifying advanced energy project investment tax credit More Info:

64 Important Reminders Contact us early Letter of Agreement(s) must be signed prior to purchasing energy-efficient equipment (except rebates) Agreement milestone dates Project scope changes Project close out documentation Examples: Invoices Permits Disposal Fees Lifts

65 CL&P Contacts New Construction (ECB): Rich Asselin (860) Retrofit (EO): Glen Eigo (860) Business & Energy Sustainability: Dave McIntosh (860) Cool Choice: Dave Hayward (860) Express Lighting Rebates: Dave Hayward (860) Small Business: Randy Vagnini (860) Financing: Randy Vagnini (860) Residential Programs: Lomont White (860) Natural Gas Programs: Matt Fox (860) CL&P Account Executives

66 UI Contacts New Construction (ECB): Roy W. Haller (203) Cool Choice: Roy W. Haller (203) Retrofit (EO): Roy W. Haller (203) Express Lighting: Roy W. Haller (203) Small Business: Dennis O Connor (203) Financing: Roy W. Haller (203) Business & Energy Sustainability: Marissa Westbrook (203) Residential Programs: Chris Ehlert (203) Natural Gas Programs: Roy W. Haller (203) UI Account Managers

67 Web Information Portal CL&P UI Yankee Gas CNG SCG CEFIA

68 QUESTIONS??? Thank you!