MULTIFAMILY ENERGY EFFICIENCY IMPROVEMENT PROGRAMS

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1 MULTIFAMILY ENERGY EFFICIENCY IMPROVEMENT PROGRAMS Process Overview June 22, 2016

2 MULTIFAMILY ENERGY EFFICIENCY PROGRAM Purpose of Program: The purpose of the and Community Development s multifamily energy efficiency improvement programs is to promote energy efficiency and affordability in the State s multifamily rental housing developments for low and moderate income households. These improvements are intended to reduce a building s energy use and lower utility bills for occupants and owners 2

3 MULTIFAMILY ENERGY EFFICIENCY PROGRAMS MEEHA-EmPOWER: Participating Utility Rate Payer funded Energy Retrofits Customer Investment Fund (CIF): Exelon-Constellation merger One Stop Shop for Energy Retrofits Builder Operator Training 3

4 UTILITY TERRITORY MAP 4

5 MEEHA-EMPOWER Public Service Commission approved DHCD s three (3) year continuation application and approving access to Commercial and Industrial (C&I) surcharge funds for non-master metered buildings. $15.0 million Residential benefits $5.0 million Commercial benefits Last Day to Commit Funds: 12/31/2017 Last Day to Spend Funds: 12/31/2018

6 DHCD MEEHA-EMPOWER PARTICIPATION ANTICIPATED Utility Territory Budget Total $ to Forecast BGE $11,386,000 48% Delmarva $2,850,000 70% PE $1,870,000 86% PEPCO $2,870, % SMECO $1,024,000 18% Total $20,000,000 54%

7 MEEHA-EMPOWER Focus on individually metered properties Measures which result in kwh reduction Measures with savings associated with natural gas usage are only eligible for funding in the BGE service territory. Energy conservation measures which result in savings associated with oil or water usage are not eligible Energy efficiency at refinance or as retrofit Terms: May be structured as a grant or 0% deferred loan

8 ELIGIBLE TYPES OF MEASURES Residential and Commercial energy conservation measures which result in the reduction of electrical (kwh) usage Residential natural gas reduction measures are eligible for funding in the BGE service territory ENERGY STAR lighting Hot water heaters Low flow water devices ENERGY STAR appliances ENERGY STAR HVAC systems Air sealing and duct sealing Insulation Windows Renewables 8

9 FUNDING Funding is available to two types of projects: Pipeline: Projects seeking DHCD energy funding in addition to other DHCD rental housing financing Non-Pipeline: DHCD energy fund applicants not seeking other DHCD financing Funding is provided as loan or grant to property owner Some owners cannot accept grants as it is reduces eligible basis for tax credits Some owners have difficulty obtaining approvals to take on additional debt 9

10 APPLICATION A separate application is not required for projects seeking other DHCD financing The Energy application and review process is integrated with DHCD s application Program Guidance Coming Soon

11 NON-PIPELINE APPLICATION PROCESS Complete and return the Pre-Application section of the DHCD Multifamily Energy Application Pre-audit inspection and report Customer s consent to release utility usage Energy audit Incorporating contractor bids for energy measures Applicant submits the completed DHCD Multifamily Energy Application

12 DHCD UTILITY CONSENT FORM

13 THE ENERGY AUDIT Energy Audits must be performed by an auditor listed on DHCD s Qualified Auditor List Energy Auditors are recertified on an annual basis Energy Audits must be performed in accordance with The DHCD Multifamily Energy Audit Guide and annual audit guidance

14 PIPELINE (ACQUISITION/REHAB FUNDING) All rental housing applications are required to submit an energy audit Energy application and review process is integrated with the department s application and underwriting for other rental housing financing No separate application required All applications are reviewed for eligibility of energy funding All energy audits are reviewed 14

15 FUNDING ELIGIBILITY 100% of the cost of qualified energy conservation measures that collectively demonstrate a Savings to Investment Ratio (SIR) >1.1; Partial funding ( cost sharing ) of qualified energy conservation measures that collectively demonstrate an SIR less than 1.1 No maximum cost per project Average Cost per Unit: $3,027

16 COMMERCIAL MEASURES RESIDENTIAL MEASURES FUNDING ELIGIBILITY Project Name: Square Footage of Project Project Address: No. Units in Project: No. Buildings in Project: Utility Provider: Funding Breakdown for the Proposed MEEHA Eligible Items Residential Utility Rate: Commercial Rate #1: Residential Gas Rate: Commercial Gas Rate: Input Data From:Audit PreRetrofit Conditions Recommended ECM Energy Audit Energy Audit Energy Audit Energy Audit DHCD EUL List Energy Audit Estimate Construction Budget ECM # Energy Conservation Measure (ECM) -- Description Specifications (Size, type, efficiency, etc.) Specifications (Size, type, efficiency, etc.) Quantity Cost Each kwh Savings Therms Saved Estimated Annual Savings (Audit) Avg Useful Life Measure Cost Audit Estimate Measure Cost212/215 Cost Quantity Water Saved 0 Subtotal Residential Measures: $ - $ - $ - 0 Subtotal Commercial Measures: $ - $ - 0 Total Proposed ECM's = Items Removed from Funding kwh Therm Total Current Usage Energy Savings 0 0 % of Project Savings

17 Application Review Application Processing: Business status check, Priority Funding Area, credit report, prior participation, historic review, Minority Business Enterprise Goal Energy Audit Review SIR Calculator completed Reservation (non-pipeline) Measures and funding approved, reservation letter executed Owner has 10 days to return reservation and 30 days to provide final award documentation (product specification sheets, insurance, contractor license, etc.) 17

18 Approval Memo Internal document, award approval executed by EMO, ECMO, Multifamily Energy Program Manager, and Director Legal Review Approval Memo, exhibits, and business documentation submitted to OAG for review OAG prepares Grant Agreement for execution 18

19 Award Execution Exhibit to Agreement will detail the efficiency, quantity, and approved funding for each measure Construction ECMO attends regular site meetings and performs inspections. Request for Payment Owner submits payment requests for work in place ECMO inspects a sampling of completed work DHCD approves payment Multifamily Finance processes pipeline payments Multifamily Energy processes energy only payment 19

20 CUSTOMER INVESTMENT FUND Focus on master metered buildings All fuel sources including water Two components Portfolio Retrofit (Fully Committed)» Energy efficiency at refinance or as retrofit» Terms: Loans are cash-flow at 0-2% interest based on overall savings achieved: 0-14%: 2% interest 15-29%: 1% interest 30% + : 0% interest One-Stop-Shop» Retrofit only» Property owners have a single point of contact to help manage the retrofit Building Operator Training

21 BEST PRACTICES: AIR SEALING

22 KEY STAFF AND CONTACTS AT DHCD Scott Falvey, Sr. Program Manager, CDA Tel: (301) Danielle England, Sr. Energy Management Officer, CDA Tel: (301) Tom Walz, CIF Production Manager, CDA Tel: (301)

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