Multifamily Retrofits The Path Forward for Multifamily Energy Efficiency Programs Charlie Taylor, Scott Campbell, and Christa Shute Thursday February 4 th, 2016
WHO S IN THE ROOM? Property owners, developers Design community (Architects, Engineers, etc.) Energy Efficiency Program Staff Policymakers, consultants, Non-profits etc. Implementers, builders, contractors etc. Others? 2
NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS Accelerating Energy Efficiency Mission Vision Accelerate energy efficiency as an essential part of demand-side solutions that enable a sustainable regional energy system Region embraces next generation energy efficiency as a core strategy to meet energy needs in a carbon-constrained world Approach Overcome barriers and transform markets via Collaboration, Education and Enterprise One of six regional energy efficiency organizations (REEOs) funded by the US Department of Energy (US DOE) to link regions to US DOE guidance, products and programs 3
REGIONAL CONTEXT -NEEP s High Performance Buildings team first began it s multifamily retrofit project in 2011. -Assisted Efficiency Maine in efforts to set up a one-stopshop, organized a regional working group, held focus groups for landlords and tenants, and disseminated best practices. -Published a report in 2014 on strategies to advance energy efficiency in small and mid-sized multifamily buildings. -Focused on small to mid-sized multifamily buildings (5-20 units). -Currently working on a collaborative project to advance the efficiency of multifamily buildings across the country with four other REEOs. 4
NATIONAL BEST PRACTICES REPORT Set for release later this year, will contain: -Best practices derived from experiences from 5 different regional organizations providing technical guidance and support to multifamily programs across the country. -Policy and program implementation recommendations -Case studies 5
REGIONAL MULTIFAMILY MARKET ASSESSMENT Characteristics of the region s multifamily housing (5+ units): -Over 5 million multifamily housing units -Almost half was built before 1960 -Overwhelmingly located in urban areas -A majority heat with natural gas -A quarter heat with oil 6
VERMONT MULTIFAMILY BUILDINGS Characteristics of Vermont s multifamily housing: 42% built before 1960 About 80% heat with oil or other unregulated fuels (propane, biomass, etc.) More rural, 26% located in rural areas compared to about 5% for the rest of the region. 7
REGIONAL BEST PRACTICES: SIMPLIFY! Refine the development of one-stop-shops for multifamily building owners Efforts to reduce the work needed from the building owner through the retrofit process: Create a single point of contact Streamline paperwork Clear, easily understandable audit reports Assign qualified contractors for implementation Include installation and savings verification 8
EXPAND PROGRAMS FOR DELIVERED FUELS Vermont is a leader in this space Huge opportunity for savings in multifamily buildings which are largely ignored in many states Nearly 1 million units in New England and New York heated with oil. Many large MF buildings heated with steam Funding mechanism needed in states with significant populations heating with oil and biomass 9
FINANCING Accessible financing is crucial to this market Public/private partnerships can maximize benefits for building owners Public entities can leverage funding by creating loan loss reserves or interest rate buy-downs which facilitate private investment On-bill and PACE financing enable building owners to bundle retrofit costs with existing bill/tax payments and typically have much lower default rates than other forms of debt 10
FACILITATE ENERGY DATA ACCESS Building owners need access to easily understandable building energy data Benchmarking in Energy Star Portfolio Manager, WegoWise, or a similar platform enables comparison between buildings. Automated data transfer through Green Button Connect My Data and similar services allow third party service providers to retrieve energy data on an ongoing basis This data should be accessible for tenants. Policies requiring disclosure of energy bills or benchmarking data to tenants give insight into the otherwise invisible energy attributes of the building. 11
GEOGRAPHICALLY TARGET AREAS WITH GRID CONSTRAINTS A vast majority of multifamily housing is located in urban areas Often grouped together by neighborhood Geo-targeting enables energy efficiency program staff and grid planners to work together to delay the construction of expensive grid infrastructure needed for load growth. There is value in investing in deeper incentives because of the savings realized by both the efficiency measures and the delay of more costly poles and wires alternatives. Most effective when paired with other DERs 12
NEEP MULTIFAMILY RESOURCES NEEP Website: www.neep.org NEEP Reports: Increasing Energy Efficiency in Small Multifamily Properties in the Northeast: Recommendations for Policy Action Operations and Maintenance Guide for Schools and Public Buildings Energy Efficiency as a Transmission and Distribution Resource Using Geotargeting
CONTACT INFO: Charlie Taylor High Performance Buildings Research and Analysis Associate Ctaylor@neep.org 781-860-9177 x 151 14
Multifamily Efficiency Retrofits: the Path Forward Better Buildings by Design February 4, 2016 Scott Campbell
3EThermal.org Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 16
nytimes.com/2015/09/12/science/climate-study-predicts-huge-sea-level-rise-if-all-fossil-fuels-are-burned.html?ref=energyenvironment&_r=0 Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 17
Overview Baseline Savings Potential Barriers Actual Savings Compared to Predicted Policy Opportunities Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 18
Baseline Savings Potential All rental units in Vermont: ~75,000 Units in apartment buildings (3+) ~50%: ~38,000 Affordable units (<80% AMI) min 75%: ~30,000 Rent-restricted units (nonprofit, tax-credit): ~13,500 Privately owned affordable apartments: ~16,500 Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 19
Baseline Savings Potential 1998 VT Weatherization Assistance Program Impact Evaluation State Auditor s Office Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 20
Baseline Savings Potential 45% 40% 35% predicted actual 30% 25% 2013 Studies: 20% 15% VFEP internal Fuel Study 10% VGS, HPwES: Impact Evaluation studies by West Hill Energy & GDS Assocs for Dept of Public Service 5% 0% Vermont Gas: Market Rate Vermont Gas: Low-Income Home Performance Energy Star VT Fuel Efficiency Partnership Realization Rate: 89% 62% 51% 75% Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 21
Baseline Savings Potential 45% 40% 35% predicted actual 2015 3E Thermal internal review 30% 25% 20% 15% 10% 5% 0% older small house <5 unit townhouse 5+ unit townhouse older newer dblloaded downtown apts corridor Realization Rate: 82% 158% 73% 79% 92% 87% n: 19 2 8 10 10 49 all Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 22
Barriers Owner Programmatic Design & Execution Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 23
Barriers for the Owner Resources: Funding & Financing Knowledge: Whom to Trust? Project Management Split Incentive Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 24
Program Barriers Timelines Funding Coordination with complementary programs Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 25
Barriers in Design and Execution Project parameters Team expertise Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 26
Actual Savings versus Predicted What are Actual Savings? Data Accuracy Normalization Vacancy, Tenancy Predicted Savings: A collection of assumptions Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 27
1970 Two-Story grouped entry (2011) 2 buildings, 16 units 12,544 SF propane heat & DHW Add ventilation Insulate side walls, attics, slab edge Install new windows and doors Total cost: $260,000 ($21/SF) $91,000 3E, WAP, EVT Sass Apts, Randolph VT Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 28
Dense-pack cellulose in 2x6 stud cavities with existing fiberglass 2 layers of 2 polyiso foam board, new windows Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 29
Ready for siding 2 extruded polystyrene at slab edge Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 30
1970 Two-Story grouped entry (2011) 2010 energy analysis usage 7,000 gal LP Energy Factor pre: 7.5 Energy Factor post: 4.3 Predicted Savings: 43% Including baseload electric Ventilation NOT included 2013 analysis for study usage pre: 6,070 gal LP Energy Factor pre: 5.0 Energy Factor post: 4.8 Predicted Savings: 5% Space Heat & DHW only Including Ventilation Fuel study Actual savings: 5% Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 31
1885/1975 Rural Apartments (2013) 3 Buildings, 5 units 5,972 SF oil heat, electric DHW Install boiler; add ventilation Insulate attics, walls, foundations Install new windows Total cost: $175,000 ($29/SF) $40,000 3E, WAP, EVT Mountain View, Hancock VT Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 32
Crawlspace venting Crawlspace: confused thermal layer, poorly installed; little or no vapor layer on dirt floor Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 33
Looking down from attic: Stud cavity air bypass Spray polyurethane foam in demo d areas Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 34
1885/1975 Rural Apartments (2013) Energy Analysis usage pre: 3,500 gal oil + 20,000 kwh Energy Factor pre: 10.5 Energy Factor post: 4.6 Predicted Savings: 56% Space Heat & DHW only Including Ventilation Fuel study Actual savings: 45% Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 35
1853 Downtown Apartments (2013) 1 building, 75 units 54,962 SF oil heat & DHW Install LP boiler for heat & DHW; add ventilation Insulate roof; replace windows Total cost: $675,300 ($12/SF) $200,000 3E, WAP, EVT Bardwell House, Rutland VT Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 36
Existing converted coal boilers: 75% AFUE? New condensing propane boilers Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 37
Google Earth view: Multiple separate building sections Rear view Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 38
1853+ Downtown Apartments (2013) Energy Analysis usage pre: 21,000 gal oil Energy Factor pre: 7.4 Energy Factor post: 4.5 Predicted Savings: 39% Space Heat & DHW only Including Ventilation Ice damage 2015 Fuel study Actual savings: 25% Missed in 2013 work: Rim joist with dirt-filled fiberglass Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 39
1980s Single-Story, Separate Entry (2013) 5 buildings, 24 units 17,152 SF oil heat & DHW Install 1 new boiler; add ventilation Insulate attics, bay windows, foundations Total cost: $205,000 ($12/SF) $66,000 3E, EVT Gill Terrace, Ludlow VT Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 40
Uninsulated bay window; crawlspace venting Fiberglass in ceiling of crawlspace; uninsulated heating pipes Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 41
Attic: Mold on underside of roof sheathing Attic floor: Fiberglass pulled back from lighting fixtures Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 42
1980s 1-Story, Separate Entry (2013) Energy Analysis usage pre: 9,500 gal oil Energy Factor pre: 8.7 Energy Factor post: 6.5 Predicted Savings: 26% Space Heat & DHW only Including Ventilation Fuel study Actual savings: 34% Insulated pipes; poly vapor layer on crawlspace floor Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 43
Lessons Airsealing: Control stack effect Ventilation: Big impact in large buildings Heating & DHW efficiency: Easy improvement Commission mechanical systems Track results Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 44
Policy Opportunities Carbon Pollution Tax Funding & Financing Grant programs: 3E Thermal, Weatherization Program VEIC/VSECU Business Energy Loan Commons Energy RUS Rural Utilities Service DSIRE Database of State Incentives for Renewables & Efficiency PACE Property-Assessed Clean Energy Vermont Information Clearinghouse Labeling & Benchmarking Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 45
3E Thermal is a Statewide program of Funded through: Scott Campbell Project Director scott@3ethermal.or g 802 477-517 Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 46
Financing Options for Multi-Family Housing Better Building by Design Conference Presentation Christa Shute February 4, 2016
The Right Combination Financing Incentives Technical Assistance VEIC Clean Energy Financing October 2015
Financing Options for Vermont LIMFH Commons Energy Public Purpose Energy Service Company Business Energy Loan Rural Utility Service Energy Efficiency and Conservation Loan Program VEIC Clean Energy Financing October 2015
Better Buildings by Design Conference Presentation February 4, 2015
Commons Energy: A public-purpose energy services company (PPESCO) PPESCO = Deep energy improvements in under-served public buildings
Target Markets Public-use sites Four sectors Significant barriers Under-served buildings Size & complexity Partners and networks
Key Model Basics Four-part service model designed to break down barriers Commons Energy Integrated Services Model
Financing Creating underwriting relationships National Housing Trust Bringing Foundations Support for Financing High Meadows Vermont Community Loan Fund MacArthur Kresge
Approach: Help facilitate any available free services or incentives Use energy savings for debt service Lower return to Commons Higher return to the mission Product neutrality Trusted source
Types Status of Projects Working with your contractors Increasing EE in Comprehensive Retrofits Upgrading EE from code to Passive House Providing Contractors and Expertise Biomass Fuel Switch Discrete Energy Efficiency
Darling Inn Complete Rehab Rural Edge. The Darling Inn is a 28-unit apartment building in Lyndonville, VT. Commons Energy will provide both construction project oversight and commissioning services for Darling Inn. List of Improvements Upgraded insulation and air-sealing Heat Recovery Ventilation Biomass Boiler Projected Savings Improvements will reduce the per-unit cost to heat and provide hot water to each unit by 56%.
Heineberg Senior Housing Discrete EE Measures Cathedral Square. Heineberg Senior Housing is an 82-unit apartment building in the new North End of Burlington, VT. Commons Energy provides fixed-rate financing-up to 15 years. List of Improvements Upgrade stairwell lighting to LED and add occupancy based controls Retrofitting outdoor bollard and parking lot lighting to LED. LED lighting upgrades in hallways and the complete retrofit of 90 existing wall scones from un-controlled compact fluorescent lamps to LED lamps on an occupancy-based controller. Projected Savings The investment is expected to reduce electric use and costs associated with lighting by 75%.
Milton Senior Housing New Construction - Upgrade Cathedral Square. The proposed Milton Senior Housing property is designed to be a 24-unit senior housing facility. Commons Energy will contribute financing to cover the incremental cost of the building materials needed to allow the facility to reach Passive House standards, and will guarantee that the building will perform as designed. Projected Savings A 77% cost savings on heating is estimated.
Union Square Apartments Biomass Fuel Switch Housing Vermont. Union Square Apartments is a 58- unit apartment building located in Windsor, VT Engineering, bid solicitation, construction, financing List of Improvements Biomass boiler replacement with High Performance Circulator Pumps and integral control VFDs Projected Savings The investment is expected to reduce heating and hot water costs by at least one-third.
Making Energy Efficiency More Accessible to Vermonters
Business Energy Loan Fast, simple financing for commercial energy efficiency projects Any type of business or nonprofit (including municipalities) Attractive interest rates (3.25% up to 3 years, 4.25% up to 5 years) No closing costs or application fee ($25 for Certificate of Good Standing from VT Secretary of State, where applicable) No collateral requirement; 100% of project costs can be financed Up to $35,000, minimum of $3,500 No business financial statements required Financing and loan servicing provided by VSECU For more info contact: Efficiency Vermont at 855-317-2254
USDA RUS EECLP United States Department of Agriculture Rural Utility Service Electric Division Energy Efficiency and Conservation Loan Program VEIC qualification as the energy efficiency utility Statewide rural program (not Burlington) VEIC Clean Energy Financing October 2015
Creating Possibilities - Program Status VEIC received conditional approval for up to $46 million in financing for RE and EE VEIC is working with the State of Vermont, Public Service Department and Board to meet conditions RUS Loan Documents and PSB Approval expected February and March of 2016. Loan Program Development starts Program Availability 2016-2020 VEIC Clean Energy Financing October 2015
Why is VEIC involved? Efficiency Vermont as the statewide efficiency utility outside of Burlington To bring a federal financing opportunity to Vermonters To create a comprehensive financing program help fill in the gaps To broaden the population of people that can implement energy efficiency by including a focus on moderate income Vermonters To facilitate economic development VEIC Clean Energy Financing October 2015
Why is RUS financing important to Vermont? This is what the program would allow Length of term 20 years or measure life Facilitates cash flow positive projects Energy savings paying for debt service Rates connected to Treasury 4% for 20 year loans, 3% for 5 year loans Project sizes from residential to commercial Both Efficiency and Renewable Measures VEIC Clean Energy Financing October 2015
A wide range of measures Energy Efficiency Projects Building envelope Equipment and Lighting Heat pumps Thermal Efficiency Better woodstoves Biomass fuel switch Geothermal Renewable Energy Projects Vehicle Charging stations Health and Safety Investments to facilitate projects VEIC Clean Energy Financing October 2015
Who else is or will be involved? Statewide Program (except Burlington) Efficiency Vermont Utilities Vendors Financial Institutions Economic Development Energy Service Companies Others VEIC Clean Energy Financing October 2015
Market Sectors Multifamily Single Family / Moderate Income Single Family / Above Moderate Income Small Businesses / Agricultural State Government, Municipalities, and Schools Larger Commercial, Institutional, and Industrial Introduction to New Ventures - April 2015
Timing and Next Steps This is a work in process. Working with RUS and State players to finalize then building the loan program itself. Potential Projects larger that $35,000 should let us know now. VEIC Clean Energy Financing October 2015
Financing Options Business Energy Loan below $35k Efficiency Vermont, Mark Kelley mkelley@veic.org; (802) 338-5111 Commons Energy above $150k Brian Pine, bpine@commonsenergy.com RUS Energy Efficiency & Conservation Loan Christa Shute cshute@veic.org; 802-557-7704 VEIC Clean Energy Financing October 2015
Making Energy Efficiency More Accessible to Vermonters
Christa Shute Director, Targeted Implementation cshute@veic.org 802-557-7704
QUESTIONS? 75