California Multi-Family New Homes (CMFNH)
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- Meredith Phillips
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1 California Multi-Family New Homes (CMFNH) Program Handbook The Program Handbook is a working document and CMFNH staff reserves the right to update, change and revise the document to clarify program rules and requirements. The current version will be available on the CMFNH website.. This document is version
2 TABLE OF CONTENTS 1. PROGRAM SUMMARY... 1 Program Contacts APPLICANT ELIGIBILITY REQUIREMENTS... 2 General Eligibility... 2 Participation Requirements... 2 Non-Qualifying Facilities PROGRAM PROCESS... 4 Overview... 4 Step 1: Application... 4 Step 2: Plan Review... 5 Step 3: Enrollment... 7 Step 4: On-Site Verification... 8 Step 5: Completion... 8 Step 6: Payment... 9 Energy Consultant Responsibilities...10 Enrollment Stage...10 Completion Stage...11 HERS Rater Responsibilities...11 Enrollment Stage...11 Construction Stage...12 Completion Stage INCENTIVE PAYMENT PROCESS...13 General Incentive Payment Requirements...13 Performance & HERS Verification Incentives...13 Energy Consultant Incentives...14 Incentive Caps QUALITY ASSURANCE/QUALITY CONTROL...15 CMFNH Plan Review...15 Verification...15 Verification of Multi-family Projects...15 HERS Inspection Verification...16
3 Energy Savings Verification Requirements OTHER PROGRAM POLICIES...17 IRS 1099 Reporting Procedures...17 Dispute Resolution Procedures...17 Limited Funding...17 Disclosure and Auspices...17 Limitation of Liability APPENDIX PROGRAM FORMS...19 Program Application...20 Energy Consultant Application...21 PG&E Proof of Service Examples...22 Will Serve Letter...22 Service Application...23 Account Statement...24 W9 IRS 1099 Form...25 Energy Measures Summary Sheet...26 Request for Incentive Page 2
4 1. PROGRAM SUMMARY California Multi Family New Homes (CMFNH), sponsored by PG&E, promotes and facilitates energy efficient design in multi family housing through design assistance, cash incentives, program coordination, and educational opportunities. The Heschong Mahone Group, Inc (HMG) administers this program as a third party during the program years. To qualify for the program, projects must achieve at least 15% above California s Title 24 minimum requirements using the performance method. This allows for a whole building or integrated design strategy. The program offers developers an escalating incentive for units of energy saved (kwh, therm, and kw) based on percent improvement above Title 24 and incentives for third party HERS verification. Incentives are also available to the energy consultant to offset the cost of building energy modeling. Projects must complete all enrollment procedures, including submitting a complete application package and successfully passing the plan review process by November 15, Projects must complete construction and submit all final completion documentation to CMFNH staff by December 31, For more information about CMFNH, visit our website at: m g.com/multifamily/cmfnh or contact us toll free at Program Contacts Toll Free: cmfnh@h m g.com Website: m g.com/multifamily Program Manager: Amy Barr, barr@h m g.com Plan Review Manager: Linda S. Murphy, murphy@h m g.com Associate Manager: Sophia Hartkopf, hartkopf@h m g.com Associate Plan Review Manager: Keith Sage, sage@h m g.com Program Assistant: Ashley Beals, beals@h m g.com Page 1
5 2. APPLICANT ELIGIBILITY REQUIREMENTS General Eligibility PG&E service: Projects must be served by PG&E electric or natural gas distribution. Incentives will only be issued for those commodities PG&E provides to the project. Multi family: Projects must be designated as multi family residential by the Title 24 Building Energy Efficiency Standards, which is defined as three or more attached dwelling units in a building. New construction: Projects must run their Title 24 compliance software using the performance method. Gut retrofit projects may qualify for the program. Contact CMFNH staff for more information. Exceed Title 24 by 15%: All projects must be built better than the 2008 Title 24 Building Energy Efficiency Standards by a minimum of 15%. Projects must qualify for the program using the commodity with which they are served by PG&E: Projects receiving only gas from PG&E must exceed 2008 Title 24 Standards using gas only measures Projects receiving only electricity from PG&E must exceed 2008 Title 24 Standards using electric only measures. Please contact CMFNH staff with any questions. No cooling installed and/or multiple utility service: Projects with no cooling installed or served by PG&E and another utility must contact CMFNH staff for calculation instructions. Participation Requirements The following list outlines general program requirements, which all applicants should understand before participating in CMFNH: Project application must be submitted to CMFNH prior to drywall installation in the units Applicant agrees that they will not accept duplicate funding from multiple utilitysponsored energy efficiency programs for the same energy measures Participating projects must meet minimum program requirements for all enrolled buildings/dwelling units within the same project, built after the date the agreement is executed Incentive payments are available only to the party named on the application Funds are limited and will be issued on a first come, first serve basis to projects that meet the program requirements. No payments will be made for any changes made to the project buildings/dwelling units that may affect compliance without prior written approval from CMFNH staff The funding for this program will expire December 31, 2015, or sooner. The IOUs will not accept agreements after November 15, Applications shall remain in effect for thirty six (36) months from date of utility acceptance Page 2
6 Non-Qualifying Facilities The following project types are examples of project types that do not qualify for CMFNH incentives and services: Single family homes (including duplexes): A single family residential building is defined by the California Building Code as a single detached unit or duplex (two attached units) Existing multi family buildings Non residential buildings Hotels and motels Projects not served by PG&E: A project must be served by PG&E gas, electric, or both If you are uncertain of the eligibility of your project, please contact CMFNH staff to discuss further Page 3
7 3. PROGRAM PROCESS Overview The CMFNH program has six (6) steps, outlined in more detail below. 1. Application: applicant submits complete application package 2. Plan Review: CMFNH staff conducts project plan review 3. Enrollment: project approved by PG&E 4. On Site Verification: HERS rater completes third party verification 5. Completion: CMFNH staff verifies as built Title Payment: applicant receives incentives Step 1: Application The first step is for the applicant to submit a complete application package to CMFNH staff. A complete package includes: a. Program Application: wet or electronic signatures accepted. All fields completed. b. Energy Consultant Application: wet or electronic signatures are accepted. All fields completed and application signed by both the energy consultant and the developer. c. Title 24 Documentation: electronic input files (.bld or.mp8) and PDF copies of the Title 24 reports from a California Energy Commission (CEC) approved Title 24 compliance software signed by a 2008 Certified Energy Plans Examiner (CEPE). The energy consultant must use the performance method of complying with the Standards to show 15% better than minimum T24 code. The CEC certified software used for multi family compliance includes EnergyPro (.bld, for low rise and high rise buildings) and Micropas (.mp8, for low rise buildings only). Participants will likely need to contact their energy consultant (Title 24 consultant) to obtain a copy of these files. d. Architectural Plan Set: hard copy plans are required, half size are accepted. Site, architectural, and MEP (mechanical, electrical, plumbing) must be included. Structural, landscape, and civil plan sections are not required (i.e. only sections which relate to the building energy performance such as building envelope, HVAC, and domestic hot water). CMFNH staff recommends that your submitted plan set be, at a minimum, 50% construction documents. The Title 24 documents and the plan set submitted should match as closely as possible. If plans are submitted before the 50% stage, CMFNH staff will request a second set of plans and revised Title 24 documentation if changes occur at later stage in the project. Provide additional product documentation (such as specifications or cut sheets) upon request Page 4
8 e. PG&E Service Territory Verification: Proof of PG&E electric and/or gas distribution to the project site must be provided. Because a PG&E account number may not exist during the design stage, the following documentation are acceptable: PG&E application PG&E application number PG&E will serve letter PG&E account number f. W9 Tax Form: As required by the IRS, HMG will report all incentive payments on a 1099 IRS Form provided to the applicant. If the developer applicant is the same entity for multiple project applications, the same W9 form can be attached to each application. This form is required because incentive payments are considered taxable income if they exceed $ An example W9 form can be downloaded at: m g.com/multifamily/cmfnh/application_process.htm Complete application packages should be submitted to CMFNH staff: Electronic Submissions: cmfnh@h m g.com Mail Submissions: California Multi Family New Homes Heschong Mahone Group, Inc Gold Country Blvd. #103 Gold River, CA Complete application packages are accepted on a first come, first serve basis. Program funds are limited and applications will be processed in the order received. Therefore, it is important to submit your application package as soon as possible to ensure participation in CMFNH. The entire project team will be notified by CMFNH staff once the complete application package is received. Step 2: Plan Review Once CMFNH staff have received the complete application package, a detailed plan review will commence. Please note that no portion of the plan review can be conducted until the complete application package has been received. Plan Review CMFNH staff will compare the project plans to the Title 24 documentation and the software input file for consistency, accuracy and to ensure that the project meets the minimum energy performance requirements of 15% better than the minimum 2008 Title 24 Energy Standards. During plan review, CMFNH staff will provide feedback to the project team. The energy consultant must use the performance method of complying with the Standards to show 15% better than minimum Title 24 code. Plan review comments can include requested modifications in the Title 24 software model. The project team and/or the energy consultant Page 5
9 must provide updated Title 24 documentation and/or any responses to the plan review comments within ten (10) business days of receipt of CMFNH plan review comments. If updates are not provided within this time frame, the project will be placed at the bottom of the plan review queue. CMFNH staff can work directly with the energy consultant to update the Title 24 documents to reflect any corrections in the model or changes in the energy measures, if needed. In addition, specification sheets or equipment catalog cut sheets may be required for the following items: Windows, glass doors, and skylights Space heating equipment Space cooling equipment Water heating equipment Roofing materials Envelope insulation Other energy measures included in the Title 24 documentation The Title 24 standards for high rise buildings include lighting, receptacle and process loads not covered by the low rise standards. The lighting, receptacle and process loads are subtracted from the standard and proposed energy budgets to ascertain high rise program compliance. This calculation has been added as a feature in the EnergyPro Title 24 compliance software, and is therefore now calculated automatically. Projects with no mechanical cooling equipment or that have electric or gas service provided by a utility other than PG&E must use the no cooling calculation methods provided in both compliance software packages (EnergyPro, Micropas). Design Assistance As a free service, CMFNH staff can provide technical design assistance to a project on an asneeded basis. For example, staff can provide assistance in helping projects get to 15% better than T24 (and beyond) by analyzing existing Title 24 documentation to determine areas for improvement, general recommendations for how to increase energy performance, and specific energy measure combination scenarios. Project Roundtables CMFNH staff can facilitate project roundtables, similar to an architectural charrette, which will bring at least six (6) project team members together from multiple disciplines to discuss project goals and to encourage the achievement of deep energy savings. The team may include, but not be limited to the developer, architect, mechanical engineer, energy consultant, general contractor, and HERS rater. Roundtables can be conducted in person or over conference call and can include representatives from other programs such as Build It Green s GreenPoint Rated or New Solar Homes Partnership Page 6
10 Step 3: Enrollment Upon completion of plan review, CMFNH will submit the following documentation to PG&E for approval and enrollment. Program application Energy consultant application PG&E proof of service documentation Title 24 documentation (input & PDF files) Summary of projected project energy savings Estimated project incentive amount The entire project team will be notified by CMFNH staff that the plan review is complete and the project has been submitted to PG&E for enrollment approval. Once approved by PG&E, CMFNH staff will send a letter of enrollment to the entire project team. This letter will include project specific energy measures information, HERS verification requirements, and the estimated incentive amount. After a project is enrolled, CMFNH staff will communicate regularly with the entire project team to ensure the project remains on track to receive incentives through the program. This will include quarterly notifications and reminders. The applicant must pay close attention to the following, and update CMFNH staff regularly on project changes: Changes in energy measures. In particular, the applicant must alert CMFNH staff if there are changes (between the enrollment and construction phase) to the energy measures that may impact the building energy use as these changes could significantly impact a project s final incentive amount. Examples of changes that would impact the building energy usage may include: Added or modified windows Changes to building insulation Changes to floor area Changes to HVAC or water heating equipment Changes to HERS measures If changes occur, CMFNH staff will work with the project team and energy consultant to update the Title 24 documentation to reflect these changes. Once finalized, the incentives will be recalculated. Changes in construction. The applicant must alert CMFNH staff if the construction schedule is changed or delayed, outdating the dates provided in the approved application. Once contacted, CMFNH staff will update the project records to reflect revised construction start and completion dates. All projects must complete construction within 36 months of enrollment. If a project s completion is estimated to fall outside of this timeframe, the developer must immediately contact CMFNH staff as the reserved incentives may be in jeopardy. HERS verification. If the applicant did not indicate a HERS rater on the application, the applicant must contact CMFNH staff once a HERS rater has been selected. CMFNH staff will update its records to include HERS rater name, company, and contact information Page 7
11 The applicant must ensure that the HERS rater verifies the project energy measures and any HERS testing and verification required by Title 24. Step 4: On-Site Verification Developers are required to hire a HERS rater to provide third party verification of the energy measures outlined in the CMFNH Energy Measures Summary. To achieve compliance with the Title 24 Standards, some buildings will require additional third party diagnostic testing or field verification of energy efficiency measures by a HERS rater. For each project, the HERS rater must verify non HERS Title 24 measures. This includes a visual inspection and recording of: building envelope (insulation, fenestration), HVAC efficiency, and domestic hot water efficiency. Additionally, the HERS rater must verify and/or test any California Title 24 HERS measures selected in the Title 24 documentation. These measures will vary by project. HERS raters ensure that the specified energy efficiency measures used to qualify the project for the program have been installed. A HERS rater will visit the site at least twice to complete the verifications for program purposes that may include, but are not limited to: 1. Before drywall installation to verify insulation R values, window u factors 2. After mechanical equipment installation to verify HVAC and DHW efficiencies The developer is required to gather all Title 24 installation certificates (CF 6R) from project subcontractors and make them available for inspection by the project HERS rater. Once verification and/or testing is complete, the HERS rater must upload the field data to one of the HERS provider registries. CMFNH staff will download the appropriate reports for submittal to PG&E. Additional HERS verification requirements apply to projects seeking utility PV incentives from the New Solar Homes Partnership (NSHP). For more information, contact PG&E s NSHP program: Green programs, such as GreenPoint Rated and LEED for Homes, also have additional verification requirements. For more information, contact Build it Green or the US Green Building Council Some HERS raters are also certified to perform the ratings for various green programs. CMFNH staff recommends that developers check their rater s credentials to be sure they can provide all required certifications for the project. For more information on the HERS rater responsibilities please consult the section titled HERS Rater Responsibilities on page 11. Step 5: Completion Once the project has completed and passed HERS verification, the energy consultant will update the Title 24 documentation to create final as built documents according to any changes Page 8
12 identified by the HERS rater. CMFNH staff will support the energy consultant in updating the Title 24 documentation and verify the project still meets program requirements. In past program cycles, CMFNH staff has uploaded these as built files to the provider registry and notified the rater that they can upload their field data. Due to changes in the 2008 Title 24 standards and HERS registry protocols, this upload process may change. Upon notification that the as built condition still meets CMFNH program requirements, the HERS rater will upload his/her field data to a HERS provider registry. This includes the results of the on site verification. The HERS rater is responsible for payment of any and all HERS provider registry fees, CMFNH is not responsible. Once the field data has been uploaded, the HERS rater must notify CMFNH staff that the files are available to download. CMFNH staff will download the appropriate reports for submittal to PG&E. CMFNH staff will notify the entire project team that the project has successfully installed all necessary measures for program compliance. At this point, the applicant must complete the following documentation and return to CMFNH staff: Request for incentive (RFI): This document summarizes the final project information, incentives and energy savings and must be signed by the applicant. Unit address sheet: This document must include a list of all unit numbers and their associated street address. Applicants will have forty five (45) days from the date the RFI is sent to the developer to submit the above two documents to CMFNH staff. Documents received after the 45 day period will risk losing their reserved incentive dollars. Once all completion documentation has been received by CMFNH staff, the following is sent to PG&E for final approval. As built Title 24 documentation (input & PDF files) Summary of as built project energy savings Project as built incentive amount Request for incentive (RFI) Unit address sheet HERS completion documentation The entire project team will be notified by CMFNH staff once the project has been submitted to PG&E for completion approval. Step 6: Payment Once PG&E approves project completion, CMFNH staff issues the incentive check(s) to applicant(s) along with a letter of completion to the entire project team. The final performance incentive is calculated based on the as built Title 24 documentation Page 9
13 Energy Consultant Responsibilities Enrollment Stage The person or company submitting the application for the energy consultant incentive provides energy consulting service (or is the project Title 24 documentation author) to the developer and/or design team so that the project Title 24 documents meet the requirements of CMFNH. The energy consultant must use the performance method of complying with the Standards to show 15% better than minimum T24 code. Title 24 documentation must be signed by a Certified Energy Plans Examiner (CEPE) for the 2008 Title 24 Standards. They must be a Residential CEPE for low rise projects and a Nonresidential CEPE for high rise projects. To obtain more information about becoming a CEPE, contact CABEC at Energy consultant incentive payments are only available for the person or company named on the energy consultant application and signed by the developer. The developer or other member of the project design team contracts directly with the energy consultant to provide energy consulting services. This contractual agreement is independent of the incentives offered through CMFNH. The energy consultant application must be signed by the developer confirming that the person/company is the correct recipient for the energy consultant incentive. In order for the energy consultant to receive the total incentive for the project, all program requirements specified in the developer s application must be met, including the following: The developer must receive written approval (CMFNH acceptance letter) before substantial construction begins All multi family buildings/dwelling units in the project must be built 15% better than the 2008 Title 24 minimum standards The project must complete construction, be inspected and/or tested by a HERS rater, and recorded in a HERS provider registry The project may not receive duplicate energy efficiency incentives from any other publicly funded source for the same energy measures used to achieve the 15% better than Title 24 requirement The project team and energy consultant must provide updated Title 24 documentation and/or any responses to the plan review comments within ten (10) business days of receipt of CMFNH staff plan review comments. When the project has been approved by PG&E and enrolled into CMFNH, the energy consultant will be sent 50% of the total energy consultant incentive. The second half of the incentive is paid when the project has completed construction. Not all projects may be eligible for an energy consultant incentive Page 10
14 Completion Stage The energy consultant updates Title 24 documentation: the Title 24 documentation will be updated to create final as built files based on installed energy measures verified in the field by the HERS rater. CMFNH staff will support the energy consultant in updating the Title 24 documentation. The project team and energy consultant must provide updated Title 24 documentation and/or any responses to any additional plan review comments within ten (10) business days of receipt of CMFNH project completion comments. The second half of the incentive is paid when the project has completed construction, the energy measures have been verified by the HERS rater, and all documentation required by the program has been received from the developer and approved by PG&E. Circumstances can occur that will prevent payment of the second half of the energy consultant incentive, including: Approved energy measures were not installed HERS rater cannot verify energy measures Project failed HERS inspection Project cancelled/never built The energy consultant s final payment could also be adjusted from what was originally enrolled due to projects finishing construction with a different number of units than anticipated. HERS Rater Responsibilities Enrollment Stage HERS rater involvement with a project begins at the time the project submits the program application and does not end until all installation measures are verified. CMFNH staff will assist the developer as necessary, directing them to the HERS provider websites to contact qualified HERS raters. Currently, the two providers eligible to certify new construction HERS raters are CalCERTS and CHEERS. Developers can access their lists of qualified raters on their respective websites: CalCERTS: CHEERS: High rise residential projects will require HERS rater inspections and/or testing as indicated in the Title 24 report and for CMFNH purposes. In order for a HERS rater to conduct high rise verification for CMFNH, raters must attend the CMFNH Program Overview for HERS Verifications webinar. High rise raters must be certified to perform nonresidential verification and testing through a HERS provider. Contact the CMFNH staff for the webinar dates and more information: cmnfh@h m g.com or CMFNH staff will support the link between the HERS rater and the developer as necessary Page 11
15 Construction Stage During the construction phase, a HERS rater will inspect each multi family project to establish that the as built conditions meet the program requirements and to ensure the buildings are constructed with energy efficiency measures approved during the CMFNH plan revew. CMFNH staff will provide an energy measures summary of the CMFNH program requirements for the project, in addition to copies of the program approved Title 24 reports. The rater must keep in mind that there can be inconsistencies between the Title 24 documentation the project originally submitted to the building department and what measures have been approved for CMFNH program participation. When that appears to be the case, the rater must contact CMFNH staff to help resolve the situation. There will be a minimum of two inspections conducted by the HERS rater for CMFNH program purposes, although additional inspections may be necessary: 1. Before drywall installation to verify insulation r values 2. After mechanical system installation to verify HVAC and DHW efficiencies HERS verification and testing protocols are determined by the CEC and vary by measures selected for Title 24 compliance. Only a visual inspection of program approved energy measures is required for program compliance, unless HERS measures (i.e. reduced duct leakage, fan watt draw, etc) were used for Title 24 compliance and to meet the 15% better than T24 program requirement. In those cases, CEC HERS protocols must be followed. When compliance with the energy code or CMFNH program participation is based on energy measures that require HERS verification, a certified HERS rater is required to perform field verification and/or diagnostic testing according to the procedures in the Reference Appendices for the 2008 Building Energy Efficiency Standards for Residential and Nonresidential Buildings.. For program quality control purposes, CMFNH staff will spot check project energy efficiency measures in coordination with the HERS rater on the project, as specified in the PG&E CMFNH Program Year contract. This quality control (QC) activity is in addition to the QC activities of the HERS provider. Quality control of certified HERS raters is the HERS providers responsibility. If CMFNH staff encounters any issues, the quality control inspection will be used as an opportunity to discuss the issue with the rater and clarify any misunderstandings. CMFNH staff will give the rater the opportunity for corrective action. If problems persist CMFNH staff will notify the appropriate HERS provider. Completion Stage The HERS rater will submit appropriate documentation of their inspection results to CMFNH staff and shall input verifications on a HERS provider registry. The HERS rater is responsible for any and all HERS provider registry fees. Upon completed project verification by a HERS rater, CMFNH staff will initiate the project payment process Page 12
16 4. INCENTIVE PAYMENT PROCESS General Incentive Payment Requirements Payment of incentives will be made only after construction is completed, the appropriate HERS documentation has been received, and CMFNH staff has finished verification. In order to receive the incentive payment, all program requirements specified in the program application must be met, including: The developer must receive written approval (CMFNH acceptance letter) before substantial construction begins All buildings/units in the project must be built to meet the 15% better than current Title 24 standards program criteria. Projects must be verified by a certified HERS rater The project may not receive duplicate energy efficiency incentives from any other publicly funded source for the same energy measures HERS verification must be recorded in a HERS provider registry prior to receiving an incentive payment Funds are limited and available on a first come, first serve basis. If the project is withdrawn from the program at any time, the developer must provide written notification of such withdrawal. Performance & HERS Verification Incentives Upon completed project verification by a HERS rater, CMFNH staff will initiate the request for incentive process using the following steps: Generate the appropriate documentation from the HERS provider registry that indicates the verification of the project is complete Generate and the request for incentive form to the developer summarizing the project s estimated energy savings and incentives Request unit address sheet (a list of dwelling unit addresses) for which the developer shall receive an incentive Applicants will have forty five (45) days to return completion documents (Request for Incentive, Unit Address Sheet, and any other applicable documents) from the time CMFNH staff sends completion documents to the applicant in order to remain eligible for incentives. CMFNH staff will submit the following documentation to the PG&E program manager for incentives: As built Title 24 documentation (input & PDF files) Summary of as built project energy savings Project as built incentive amount Request for incentive (RFI) form Unit address sheet Page 13
17 The available performance incentive amounts to developers are as follows: $100 per dwelling unit base incentive (must meet 15% better than minimum code) Escalating incentive amounts based on percent better than 2008 Title 24 Projects will receive incentives for only those commodities they receive from PG&E: projects receiving only gas from PG&E will only be eligible to receive incentives related to their therm savings; projects receiving only electricity from PG&E will only be eligible to receive incentives related to their kw and kwh savings. Incentives for HERS verification, paid to developers, will be issued in the amount of $60 per dwelling unit with a cap of $12,000 per project (maximum of 200 units). Funds are limited and available on a first come, first serve basis. Energy Consultant Incentives In order to receive the energy consultant incentive, the energy consultant must at a minimum: Be, or be employed by, a 2008 Certified Energy Plans Examiner (CEPE) with residential designation for low rise projects and nonresidential designation for high rise projects Be responsible for the complete and accurate documentation of all Title 24 forms, including the CF1 R or the PERF 1 and the CEC approved Title 24 input files Respond to CMFNH staff regarding plan check revisions and provide specification clarifications within ten (10) business days Complete as built Title 24 revisions if the project specifications change during construction The energy consultant incentive in the amount of $50 per dwelling unit is available with a cap of $10,000 per project (maximum of 200 units). Incentive checks to energy consultants will be issued in two ($25 per dwelling unit) increments. The first half will be paid when the energy consultant submits the compliant energy analysis report and the project is enrolled in CMFNH. The second half will be paid at the end of the project, after construction is complete and the HERS rater has verified energy measure installation. Funds are limited and available on a first come, first serve basis. Incentive Caps The performance incentive is calculated on a dollar per energy unit (therms, kwh, kw) basis and plateaus at 45% in excess of the 2008 Title 24 Building Energy Efficiency Standards (starting at 15% in excess of 2008 Title 24). Therefore, the performance incentive cap per project is at 45% better than 2008 Title 24. The energy consultant and HERS verification incentives cap at 200 units. The maximum energy consultant incentive per project is $10,000 and $12,000 for the HERS verification incentive Page 14
18 5. QUALITY ASSURANCE/QUALITY CONTROL CMFNH Plan Review CMFNH staff with CEPE certifications shall perform a thorough plan review in coordination with each project s primary contact person (e.g. project architect, energy consultant, developer, etc). The project s Title 24 and construction drawings will be compared for consistency and correctness. The project s Title 24 software model will be evaluated to ensure the project has been modeled per the software vendor instructions and Title 24 compliance rules. To document this process, a detailed plan review form is completed for each project. See the Plan Review section on page 15for more detailed information. Verification Each project must receive on site verification by a HERS rater. The role of the HERS rater is to verify the energy measures claimed by the project to reach the program performance requirement (15% better than Title 24) were installed. Review the HERS Rater Responsibilities section on page 11 for more information.. Verification of Multi-family Projects The developer will contract with a certified HERS rater to perform the testing and/or verification inspections as required by the CMFNH approved Title 24 documentation. CMFNH staff will assist the developer, as necessary, in contacting eligible and qualified HERS raters. CMFNH staff will monitor the progress of HERS inspections to ensure that participating projects meet the criteria of the program from application through construction completion. CMFNH staff is responsible for the following HERS related activities: Refer developers to HERS raters through the provider websites (CHEERS and CalCERTS) and CMFNH contact list of experienced multi family raters Provide HERS raters with the necessary project information to generate an estimate for services to the developer Ensure all data is entered into the HERS provider registries Ensure that: the building simulation runs are redone according to the as built conditions if they differ from the details in the original complying simulations the project still qualifies with the program requirements Continue collaboration with HERS providers to refine their registries for multi family projects and help to resolve issues that raters have with uploading verifications for multi family projects Page 15
19 HERS Inspection Verification CMFNH staff will verify inspection results by re inspecting 5% of the multi family units performed by HERS raters.. This quality control (QC) activity is in addition to the QC activities of the HERS provider. Quality control of certified HERS raters is the HERS providers responsibility. See the HERS Rater Responsibilities section on page 11 for more information. Energy Savings Verification Requirements Energy savings are derived from the UTIL 1R output from Energy Pro and MICROPAS T24 compliance software. Final verification will be based on the results of the third party HERS verification. The as built T24 files will reflect the energy savings for the final incentive amount Page 16
20 6. OTHER PROGRAM POLICIES IRS 1099 Reporting Procedures All incentive payments over $ are considered taxable income. CMFNH staff will report all incentive payments on the 1099 IRS Form. Therefore it is required that each project submit a W9 as a part of their complete application package. Dispute Resolution Procedures CMFNH staff will resolve all applicant complaints within fifteen (15) business days from notification. If CMFNH staff is unable to resolve the complaint within fifteen business days, CMFNH staff will advise the complainant by telephone or writing within forty eight (48) hours of becoming aware of the fact. In the event that a complaint results in a dispute and is not resolved to the satisfaction of both parties within forty five (45) business days, the dispute will be resolved through a third party dispute resolution party. CMFNH staff will not secure contractors for developers nor become a party to any agreements between developers and contractors or suppliers. There are existing dispute resolution procedures for contractors established by the Contractors State License Board. Limited Funding CMFNH funding is limited and is available on the first come, first serve basis. Disclosure and Auspices California consumers are not obligated to purchase any full fee service or other service not funded by this program. This program is funded by California utility ratepayers under the auspices of the California Public Utilities Commission (CPUC). Los consumidores en California no están obligados a comprar servicios completos o adicionales que no esten cubiertos bajo este programa. Este programa está financiado por los usuarios de servicios públicos en California bajo la jurisdicción de la Comisión de Servicios Públicos de California (CPUC). Limitation of Liability The applicant has read and understands the terms and conditions on the application and agrees to abide by the rules, requirements and terms set forth on the application. If the agreement is terminated for any reason, CMFNH staff shall not be liable to the applicant for damages or compensation of any kind. CMFNH staff reserves the right to determine eligibility for the incentive. Funding approval is limited and will be paid on a first come, first serve basis to qualified applicants. Funds will only be reserved upon CMFNH staff s execution of an agreement, a completed program eligibility Page 17
21 approval, and notification letter to the participant and PG&E. The incentive offer is subject to the availability of authorized funds. Installation of any energy efficient equipment required for compliance with the 2008 Title 24 standards will not qualify for incentives. Energy efficiency improvements beyond the 2008 Title 24 requirements or a generally accepted industry standard, where applicable, are eligible for incentives. Specific restrictions may apply to each energy efficiency system, as outlined in the instructions and attached project forms. To be eligible for incentives, applicant agrees that (s)he will not apply for or receive incentives offered by local or state entities or other utilities for measures covered under this agreement. The applicant understands that the incentive requires inspection and measurements of the performance of the measures. The applicant agrees to provide access to the project site for these purposes to CMFNH staff and/or its agents, PG&E and/or its agents and the CPUC and/or its agents. Applicant understands that if the incentive is modified in any way or terminated by order of any government entity, then the agreement shall be revised or terminated consistent with that order. Both funding and the conditions of the incentive are subject to the jurisdiction of the California Public Utility Commission (CPUC) and shall be subject to such changes and modifications as the CPUC may, from time to time, direct in the exercise of its jurisdiction. If there are changes in the incentive, CMFNH staff will endeavor, but cannot guarantee, to provide a reasonable period of time before changes go into effect. CMFNH staff makes no representation or warranty, and assumes no liability with respect to quality, safety, performance, or other aspect of any design, system or appliance installed pursuant to the agreement, and expressly disclaims any such representation, warranty or liability. The applicant agrees to indemnify CMFNH staff and PG&E affiliates, officers, directors, agents, employees, parent company and subsidiaries against all loss, damage, expense, fees, costs and liabilities arising from any measures installed Page 18
22 7. APPENDIX PROGRAM FORMS This section outlines some of the forms required by CMFNH, including: CMFNH Program Application Energy Consultant Application PG&E Proof of Service Examples W9 IRS 1099 Form Energy Measure Summary Request for Incentive Page 19
23 Program Application Page 20
24 Energy Consultant Application Page 21
25 PG&E Proof of Service Examples Will Serve Letter Page 22
26 Service Application Page 23
27 Account Statement Page 24
28 W9 IRS 1099 Form Page 25
29 Energy Measures Summary Sheet Page 26
30 Request for Incentive Page 27
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