PG&E Commercial Water Heater Distributor Incentive Program Participation Agreement

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1 Program Description The Commercial Water Heater Distributor Incentive Program (hereafter referred to as the Program ) is an energy efficiency program funded by California utility customers and administered by Pacific Gas and Electric Company (hereafter referred to as PG&E ) under the auspices of the California Public Utilities Commission (hereafter referred to as CPUC ). Energy Solutions serves as the Program Implementer. The goals of the Program are twofold: (1) encourage Distributors to increase their inventory of high efficiency commercial water heating equipment; and (2) encourage Distributors to upsell that equipment (i.e., explaining to Distributors customers the technical benefits and calculating the return on investment when possible). The goals of the Program are fostered by providing incentives in the form of cash rebates to Distributors for selling qualifying high efficiency commercial water heating equipment that is installed at commercial and multifamily PG&E gas customers facilities. To participate in the Program, Distributors are required to sign this with PG&E and agree to its provisions. Distributor Information Company Name ( Distributor ) Number of Participating Locations Street Address City State Zip Mailing Address (if different from above) City State Zip Federal Tax ID Number Tax Status (Corporate or Non-Corporate) Water Heating Equipment Manufacture(s) Represented Internet Web Site Primary Management Contact Name Secondary Management Contact Name Phone Number Fax Number Address Phone Number Fax Number Address Rebate Data Entry Contact Phone Number Fax Number Address PGE Comm WH Distrib Prog DPA Final.doc Page 1 of 8

2 Terms, Definitions, and Conditions of Participation Equipment For purposes of this Program, the term Equipment means a high efficiency commercial natural gas tank, or instantaneous (tankless) water heater. Qualifying Distributors For the purposes of this Program, a Qualifying Distributor is an entity that purchases Equipment directly from the manufacturer and sells such Equipment to be installed at a PG&E customer s commercial or multifamily facility. A vendor who purchases Equipment from a distributor does not qualify for enrollment in the Program. Under certain circumstances, a manufacturer may serve as its own Distributor and sell Equipment directly to the end-use customers. In this case, the manufacturer/distributor will qualify to participate in the Program. If a manufacturer operates a warehouse facility which ordinarily does not act as a Distributor of its products, that facility will be treated as the manufacturer (for purposes of this Program) and will not qualify for the Program unless the facility is selling Equipment directly to the end-use customers. An entity that receives Equipment for re-sale from the manufacturer s distribution facility will be considered a Distributor, and will qualify to enroll in the Program. Qualifying Customers and Installations A Qualifying Customer receives commercial 1 gas service from PG&E and pays a Public Goods Charge. Qualifying Customer facility types include, but are not limited to, offices, hotels/motels, restaurants, retail and multifamily housing installations. In order for a multifamily housing installation to be considered eligible for this Program, Qualifying Equipment must wholly serve common areas within the building (i.e., water heating equipment serving individual dwelling units are not eligible for incentives through this Program). Qualifying Installations reflect projects at a Qualifying Customer facility. These may be replacement (retrofit) or new construction scenarios. Qualifying Equipment Qualifying Equipment is Equipment that meets the following rated efficiency criteria and has been added to the Program list of Qualifying Equipment. The current list of Qualifying Equipment (hereafter referred to as the Qualifying Equipment List ) can be found on the Program Website currently located at the following URL: (the Program Website ). 1 For multifamily buildings, a Qualifying Customer may have a residential PG&E gas account. PGE Comm WH Distrib Prog DPA Final.doc Page 2 of 8

3 Efficiency Criteria Instantaneous Water Heaters (i.e., no integral storage) Input Rating Required Rated Efficiency 200 MBtuh Energy Factor 0.63 > 200 MBtuh Thermal Efficiency 82% Storage Water Heaters Input Rating Required Rated Efficiency 75 MBtuh Energy Factor 0.62 > 75 MBtuh Thermal Efficiency 82% In order to be listed as Qualifying Equipment, Equipment must demonstrate an adequate efficiency rating as defined above through one of the following organizations: 1. Air Conditioning, Heating, and Refrigeration Institute (AHRI) / Gas Appliance Manufacturers Association (GAMA) Directory of Certified Product Performance 2. California Energy Commission Appliances Database (hereafter referred to as the Efficiency Rating Source List ) PG&E reserves the right to add or remove organizations from the Efficiency Rating Source List as deemed appropriate by the Program Implementer during the Program Term (defined below). Adding Equipment to Qualifying Equipment List If a Participating Distributor wishes to have additional Equipment added to the Qualifying Equipment List, they must contact the Program Implementer and submit supporting documentation indicating that the additional Equipment is listed with one of the approved sources on the Efficiency Rating Source List. The Program Implementer s contact information set forth below on Page 6, which may be updated by PG&E from time to time. See the Program Website for current Program Implementer contact information. Double Dipping Please note that Qualifying Equipment is eligible for only one CPUC-regulated rebate, either through this Program, or any other applicable PG&E energy efficiency incentive program. Therefore, all rebate Applications (defined below) must have a unique serial number entered for each piece of Qualifying Equipment. Applications will be compared for duplicate serial numbers across this, and other applicable PG&E programs. PGE Comm WH Distrib Prog DPA Final.doc Page 3 of 8

4 Applications containing the same serial number(s) as another in-process or approved Application in this Program or any other applicable program will be rejected from this Program for double-dipping. If double-dipping was determined based on the appearance of a duplicate serial number within another applicable program application, that program will be notified that the Application for this Program was rejected. Those program administrators will proceed as their policies and procedures dictate. Similarly, Applications reflecting the same install location as another in-process or approved application in this Program or any other applicable program will not be approved until double-dipping or any other appropriate verification is completed. Incentive Rates Rebates under the Program are based on Equipment rated input and the following incentive rate: $2 / rated input MBTUH 2 for all qualifying installations For example, a qualifying water heater rated at 200,000 BTUH input, would be eligible for a $400 rebate under the Program ($2 x 200 = $400). Note that this incentive rate applies to all Qualifying Installations (i.e., the incentive amount does not change based on the type of business the Qualifying Equipment is installed in). Application and Qualifying Sale Within this document, Application refers to the request for incentives on a specific Qualifying Sale, where Qualifying Sale = Qualifying Equipment + Qualifying Installation. Instant Incentive System The Program utilizes a paperless, on-line system for entering, processing, and tracking Applications. This is referred to as The Instant Incentive System and is located at the Program Website. Upon enrollment in the Program, Distributors are provided with a unique log-in ID and will receive Program-supported training on the use of the Instant Incentive System. Program Promotion Distributor agrees to display PG&E approved or provided Program promotional materials at point of purchase locations in accordance with PG&E s policies and guidelines. Program Term The term of the Program is January 1, 2010 through December 31, 2012 (the Program Term ). Only Qualifying Equipment sold during the Program Term to be installed at Qualifying Customers facilities will be eligible for rebates. Distributor acknowledges and understands that the Program has a limited budget. Except for Qualified Equipment sold within the last 30 days of the Program Term, Applications will be accepted on a first-come, first-served basis until the Program Term has ended or until allocated funds are spent. For Qualified Equipment sold within the last 30 days of the Program Term, Applications will be accepted on a first-come, first-served basis until 30 2 MBTUH = 1,000 BTUH PGE Comm WH Distrib Prog DPA Final.doc Page 4 of 8

5 days after the Program end date is reached or until allocated funds are spent. First-come, first-served status will be determined by the date the rebate Application is submitted via the Instant Incentive System. Applying for a Program Rebate To apply for a Program rebate, Participating Distributors must upload sales and installation information to the Instant Incentive System. The following installation, Equipment, and sales information is required to complete a Program Application: Qualifying Equipment Information: 1. Manufacturer 2. Model 3. # of units (water heaters) installed 4. Unit serial number(s) Installation Site Information: 1. Business name and address (where the Equipment is to be installed) 2. Contact information (may either be for installation site, sales contractor, or installer) Sales Information: 1. Invoice number 2. Invoice date The Participating Distributor shall be responsible for supplying accurate customer information when submitting incentive Applications via the Instant Incentive System. Insufficient information may result in rejection of the Application. Application Agreement Clauses The following provisions contain terms and conditions that are part of every Program incentive Application. By signing this, Distributor agrees that these terms and conditions will apply to every Program Application Distributor submits. Good Faith Statement All Application information is submitted in good faith as true and correct and all of the Equipment listed in any Application will be new and sold to a customer for installation at a commercial or multifamily facility that receives gas service from PG&E and pays a Public Goods Charge. Distributor will take appropriate internal administrative steps to avoid duplicate entries of Applications that may be created due to Distributor s current PGE Comm WH Distrib Prog DPA Final.doc Page 5 of 8

6 paperwork processes, personal organization of assigned administrative support, and potential fraudulent activity. Verification The installation of Equipment will be subject to verification by PG&E. PG&E will randomly select a portion, approximately five to ten percent (5%-10%), of Applications for field verification. Verification will be performed per PG&E requirements on all Equipment listed, or a select portion of the Equipment listed, on selected Applications. In order to pass verification, the Equipment s model and serial numbers as listed in the Application must match the Equipment at the installation site. The Equipment must be verified to be new, and installed or job sited at the Qualifying Customer s facility. If the model or serial numbers found during field verification differ from what is listed in the Application, the Application will be rejected and the Distributor will have the opportunity to amend the Application with corrected information and resubmit the Application for reconsideration. The Distributor is responsible for submitting accurate and exact Qualifying Customer addresses. Incorrect addresses may result in PG&E rejecting all the Applications at that location. If construction or other project delays cause Equipment to not be installed or job sited at the Qualifying Customer s facility prior to the time of field verification, PG&E will reject the Application and the Distributor may resubmit the Application after the Distributor has verified installation at the Qualifying Customer s facility. Note that all resubmitted Applications are subject to the Program Term. Payment Holds For Applications selected for field verification, payments will be held until the verification is completed and subsequently processed according to results see section titled Verification of this. All other Applications will be immediately processed for payment. Refunds and Adjustments PG&E is entitled to a prompt refund from Distributor of any and all incentive payments resulting from inaccurate Application information or Equipment returns made by Distributor. Any refund of incentive amounts paid to Distributor to which PG&E becomes entitled will be deducted and offset as an adjustment from Distributor s future invoices. If PG&E cannot offset the refund in a timely manner, then if requested by PG&E, the Distributor must promptly refund to PG&E the incentive amounts due PG&E. Suspension At its discretion, PG&E reserves the right to suspend Distributor from the Program. Typical reasons for a suspension are the submission of incorrect or inaccurate Application information, failed installation Verifications or Equipment inspections, breach of this, or violating PG&E s Program policies and procedures, Equipment or customer eligibility rules, or the Program s terms and conditions. A Distributor may apply for reinstatement to the Program after 90 days. During the suspension period, PG&E reserves the right to disqualify all of the Distributor s Equipment sales from the date of suspension to the date of reinstatement. PGE Comm WH Distrib Prog DPA Final.doc Page 6 of 8

7 Program Contacts If you have questions or concerns about the Program, contact the Program Implementer first. If your matter is not resolved, you may contact the Program Administrator. Program Implementer: Program Administrator: Energy Solutions Kate Merrill PG&E Oksana Harris (510) x 223 (415) kmerrill@energy-solution.com OVH1@pge.com Any written notice, demand or request required or authorized in connection with this, shall be deemed properly given if delivered in person, sent electronically via a nationally recognized overnight courier, or first class mail, postage prepaid, to the addresses specified above, or to other addresses specified in writing by PG&E or Energy Solutions. An originally executed version of this Participation Agreement if delivered electronically via by one Party to the other Party as evidence of signature shall, for all purposes hereof, be deemed an original. When any of the above methods of execution of this is utilized in accordance with the terms set forth in this Section then neither Party shall have the right to object to the manner in which the was executed as a defense to the enforcement of this. CPUC Authority This shall at all times be subject to such changes or modifications by the CPUC, as it may from time to time direct in the exercise of its jurisdiction. Distributor understands that the CPUC may commence an investigation or other regulatory proceeding in connection with the Program and/or this. Distributor agrees to cooperate fully with any such investigation or proceeding. PG&E does not guarantee that it can keep any data confidential. This Program is subject to oversight by the CPUC, which may wish to review any Program data that PG&E receives. Furthermore, PG&E will have no liability to Distributor or other party as result of any public disclosure of any data or other materials. Nonetheless, PG&E understands the sensitive nature of certain data supplied by Distributor. Any participant data provided by Distributor to PG&E as part of the Program will be used only for the purpose of tracking and analyzing trends in sales of Qualifying Equipment over the course of the Program in order to evaluate the effectiveness of the Program The cumulative sales information of all participating Distributors will be used to generate an overall report, which will act as the basis for determination of the Program s success. This report will be made available to the public. However, this report will not contain Distributor-specific information. Preservation of Records The Distributor shall preserve all records of sales of Equipment for which an incentive was received from PG&E under this Program for a period of six years after termination of this PGE Comm WH Distrib Prog DPA Final.doc Page 7 of 8

8 agreement. PG&E s duly authorized representatives shall have the right to inspect and to reproduce any such accounts and records related to Equipment purchase, sales, or the incentives received. All financial statements, reports, records, and other documents shall properly reflect the true facts about all activities and transactions for which the Distributor received an incentive as a Program participant. Tax Liability PG&E will report Distributor s rebates as income to Distributor on IRS Form 1099 unless Distributor has indicated its tax-exempt corporate tax status above. Distributor is encouraged to consult its tax adviser concerning the taxability of rebates. PG&E is not responsible for any taxes that may be imposed on Distributor as a result of receipt of incentives from this Program. Distributor has caused this to be executed by its duly authorized representative. Distributor Signature Title Print Name Date Distributor Checklist: 1. Fill out Page 1 in the Distributor Information section 2. Fill out and sign Page 8 3. Submit via options detailed below Submittal Options: After filling out and signing the as instructed above, make a copy of the document for your records, and then either send electronically with a subject header of Commercial Water Heater Distributor to: kmerrill@energy-solution.com or mail the original or copy of the document to: Energy Solutions Attn: Commercial Water Heater Distributor Incentive Program 1610 Harrison Street Oakland, CA Distributors will be notified when their is received. PGE Comm WH Distrib Prog DPA Final.doc Page 8 of 8

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