Energy Upgrade California

Energy Upgrade California Layering Programs and Incentives for Deeper Energy Savings in Multifamily Properties

Introductions The Heschong Mahone Group, Inc (HMG) Consulting on energy efficiency for buildings Based in California Headquarters in Sacramento region Offices in Bay Area and San Diego region Expertise in multifamily energy efficiency program implementation throughout California www.h-m-g.com/multifamily The SDG&E and the City of San Diego have contracted HMG to implement the Energy Upgrade California Multifamily program. 2 / 22

Programs for Available for Multifamily Properties California Solar Initiative Solar-Thermal Multifamily Energy Efficiency Rebate Program Energy Efficiency Business Rebates Energy Upgrade California Energy Savings Assistance Program 3 / 22

Guiding Rules No one-size fits all approach Each property has a unique set of cost-effective solutions There is ALWAYS some opportunity to reduce energy use Tune-ups/maintenance practices Tenant education (behavior change) Equipment replacement Major renovation If you are doing any upgrade to a property, consider energy efficiency Available incentives can stretch your dollar further Cost savings through reduced complaints, tenant retention, utility bills Avoid lost opportunities 4 / 22

Energy Efficiency Loading Order Reduce heating and cooling loads, then meet remaining load with smaller capacity (lower cost) mechanical equipment Install all cost-effective energy efficiency measures, then install smaller (lower cost) renewable energy system(s) to offset remaining energy load But don t forget that people use energy, not buildings Educate residents and operations and maintenance staff PV HVAC Domestic Hot Water Lighting and Appliances Building Envelope 5 / 22

Energy Savings Assistance Program (ESAP) - Overview Direct Install Program (free upgrades) First step for income-qualified properties Funded by: Rate-Payer Implemented by: SDG&E and Richard Heath Associates Eligibility Low-income SDG&E customers (tenants) Household Size Gross Annual Income Household Size Gross Annual Income 1 $22,340 5 $54,020 2 $30,260 6 $61,940 3 $38,180 7 $69,860 4 $46,100 8 $77,780 6 / 22 Building owner must sign a waiver for tenant participation ESAP contractor determines cost-effective upgrades (min. 3 upgrades to participate)

Energy Savings Assistance Program (ESAP) Eligible Measures Measures installed by an ESAP contractor: Door Weather-stripping Low Flow Showerheads Outlet Gaskets Gas Appliance Inspection Fluorescent Ceiling Light Fixtures Damaged Door Replacement Broken Glass Replacement Energy Star Room Air Conditioner Energy Star Refrigerators For more information call 1-800-411-7343. www.sdge.com/energy-savings-assistance-program 7 / 22

Energy Upgrade CA Multifamily - Overview Whole-Building Energy Upgrade Program Best for planned rehabilitation or renovation Funded by: Rate-Payer and DOE SDG&E City of San Diego Implemented by: Heschong Mahone Group Eligibility Five or more attached units Improve whole-building energy consumption by at least 10% (using energy modeling) Contact Cheryl LaCombe 866-352-7457 lacombe@h-m-g.com www.h-m-g.com/multifamily/sandiego 8 / 22

Energy Upgrade CA Multifamily - Incentives Incentives available on a first come, first served basis and layered as such San Diego Gas & Electric (for qualifying properties served by SDG&E) PLUS City of San Diego ( for qualifying low/moderate-income properties located with in the City of San Diego) Percent (%) Improvement City of San Diego ($/unit) SDG&E ($/unit) 10% $550 $500 15% $625 $750 20% $800 $1,000 25% $1,000 $1,250 30% $1,200 $1,500 35% $1,350 $1,750 40% $1,500 $2,000 Incentives are: Designed to help offset the retrofit costs: energy measures, labor, and rater (cannot exceed total cost) 9 / 22

Energy Upgrade CA Multifamily Eligible Measures Envelope Windows Roof/attic insulation Wall insulation Floor insulation Cool roof/radiant barrier Heating and Cooling Heating and Cooling equipment replacement Duct sealing and insulation Water Heating Water heating equipment replacement Recirculation controls Appliances Indoor and outdoor lighting (hardwired) Refrigerators and dishwashers 10 / 22 *Measures based on what can be modeled in HERS II software.

Energy Upgrade CA Multifamily - Project Team Rater is the foundation of the program, as the: Auditor or assessor Energy modeler Owners point of contact Provider of recommended energy efficient measures Contractor installs the measures, is hired by the Owner Owner choses contractor and is not trained by program Rater independent from the contractor Work together to insure scope of work and specifications are met Rater conducts the post-retrofit verification Contractor may perform assessment if they have met program training requirements 11 / 22

Multifamily Energy Efficiency Rebate Program - Overview Prescriptive (single-measure) Rebate Program For smaller upgrade projects and supplemental incentives to wholebuilding program Funded by: Rate-Payer Implemented by: SDG&E Eligibility Multifamily properties (2+ dwelling units) Dwelling units Common areas Reserve rebate funds before purchasing and installing equipment. For application and list of eligible equipment: 1 (800) 644-6133 sdge.com/multifamilyrebate 12 / 22

Multifamily Energy Efficiency Rebate Program Upgrades/Incentives Measure Specifications Incentive Amount Attic and wall insulation Screw-in CFL Energy Star 05 30 watts Screw-in CFL Reflector Energy Star R-30 to R-40 $0.15/sq. ft. $4 to $6.50 each $8 to $10 each Ceiling Fans with CFL s Energy Star $20 each T-5 or T-8 Lamps with Electronic Ballasts Energy Star 2-8 one to three lamps $32 to $38 each Occupancy Sensors Wall, ceiling or plug type $10 each Faucet aerators (kitchen and bathroom) Low flow showerheads Replace flow rate greater than 2.5 GPM with 1.5 GPM or less $1.25 each $5.00 each 13 / 22

Multifamily Energy Efficiency Rebate Program Upgrades/Incentives Measure Specifications Incentive Amount Electric Storage Water Heaters Natural Gas Storage Water Heater Central Natural Gas Storage Water Heater Central Natural Gas Boilers Specify gallons and energy factor Energy Efficient $30 each Specify gallons and energy factor $30 each Specify the energy factor and gallons Space and Water Heating Water Heating Only Specify MBTUH, AFUE or T.E. Boiler controllers Log the daily demand pattern of DHW use and lower temperatures during low use periods Natural Gas Central Furnaces Minimum 92 AFUE Energy Star $500 each $1,500 each Serving 34 Units = $700.00 Serving 35 Units = $1,400 $200 each 14 / 22

Energy Efficiency Business Rebates - Overview Funded by: Rate-Payer May apply to multifamily properties with mixed use, a lot of common space, or resident services Implemented by: SDG&E Eligibility Must hold San Diego Gas & Electric (SDG&E ) commercial account Install only qualifying product(s) Upgrades must be operational before a rebate application is submitted Contact SDG&E s Energy Savings Center. 1-800-644-6133 ESC@semprautilities.com www.sdge.com/rebates-finder/energy-efficiency-business-rebates 15 / 22

Energy Efficiency Business Rebates Upgrades/Incentives Itemized measures include: Lighting Food Service Refrigeration Natural Gas Agriculture Motors Full list of eligible products www.sdge.com/sites/default/files/documents/1935330297/business%20re bates%20product%20catalog.pdf?nid=168 16 / 22

California Solar Initiative (CSI) - Thermal - Overview Performance-Based Solar Water Heating Rebate Program Funded by: Rate-Payer Implemented by: California Center for Sustainable Energy Eligibility: Single family, multifamily, and commercial customers Install qualified solar water heating system Installed by a licensed contractor or self-installer that has attended a CSI-Thermal contractor/installer training workshop Maximum rebates for multifamily customers $500,000 for natural-gas displacing systems $250,000 for electric- or propane-displacing systems. energycenter.org/index.php/incentive-programs/solar-water-heating 17 / 22

www.energycenter.org CSI-Thermal Program California Solar Initiative Solar Water Heating Rebate Program $280M Rebate Program for SWH systems that displace natural gas, electricity, or propane Single-Family Residential 18.59/ therm Cap Multifamily/ Commercial Cap $2,719 $14.53/ therm $500,000 $0.54/ kwh $1,834 $0.42/ kwh $250,000 Rate-payer funded program Qualified systems offset domestic hot water load Program in place through 2017 Low-Income CSI-Thermal Program available with higher incentive rebates To find out more, go to www.waterheatedbythesun.com

Program Rebates and Layering You MAY NOT receive energy efficiency rebates for the same upgrade from multiple programs with the same funding source Example Whole-building incentives for upgrades that include lighting and domestic hot water rebates from Energy Upgrade CA Lighting and domestic hot water rebates from the Multifamily Energy Efficiency Rebate Program You MAY receive incentives from multiple funding sources for the same measure Example Whole-building incentives from City of San Diego (DOE-funded) for an upgrade package that includes solar-thermal CSI solar-thermal rebates (Rate-Payer funded) 19 / 22

Program Rebates and Layering You MAY receive incentives from multiple programs under the same funding source for different upgrade measures Example Lighting, refrigerator, and weather-stripping direct install from Energy Savings Assistance Program Whole-building incentives for insulation, windows, and DHW rebates (15% improvement) from Energy Upgrade CA ENERGY STAR ceiling fans and clothes washers from the Multifamily Energy Efficiency Rebate program Solar-thermal rebates from the California Solar Initiative Program Program rebates or incentives may not to exceed the actual cost of upgrades 20 / 22

Heschong Mahone Group, Inc. Elizabeth McCollum Program Manager 916-962-7001 mccollum@h-m-g.com www.h-m-g.com/multifamily/sandiego 21 / 22

Upcoming Webinars November 27, 2012 Energy Upgrades (Part 1): Decision-making Implementing energy upgrades can be an onerous task. We will discuss how to identify energy upgrade opportunities, cover available utility rebate programs, and discuss other funding opportunities to making your building a more valuable asset. Guest(s): Miya Kitahara, StopWaste.Org Dec. 12, 2012 Energy Upgrades (Part 2): Execution Building on the content from the previous webinar, this webinar will cover the execution of energy upgrades. We will discuss the use of financial analysis tools to inform the energy upgrade decisions, and a guest speaker (HERS Rater) will discuss how an energy assessment can provide upgrade recommendations. Guest(s): Kristin Dockter, E3 NorCal Visit www.h-m-g.com/multifamily/lifecyclewebinars.pdf to register 22 / 22