Going Green Energy Incentive Roundtable. PACE Program

Transcription

1 Going Green Energy Incentive Roundtable PACE Program 1

2 What Is It? PACE Property Assessed Clean Energy PACE program is one of the newer mechanisms for financing energy efficiency and renewable energy improvement projects. PACE allows qualifying energy improvements to be financed through assessments on a property s real estate tax bill. 2

3 How Did It Get Here? Must be legislatively authorized by the state Ohio 1 of 26 states plus DC Senate Bill 232 passed in 2010 Local municipality or township must form a special improvement district (SID) 3

4 SB 232 Pace financing can be used for: Solar photovoltaic improvements Solar thermal improvements Geothermal improvements Customer-generated energy projects which include wind, biomass or gasification facilities Energy efficiency improvements 4

5 Energy Efficiency Improvements In SB 232, Energy Efficiency Improvements are defined as: Technologies, products and activities that reduce or support the reduction of energy consumption, allow for the reduction in demand, or support the production of clean, renewable energy and that are or will be permanently fixed to real property. 5

6 Structure Public-private partnership between the property owners and the local government authorizing the SID. Financing can come from: Issuance of municipal bonds by local government Conduit issuer of bonds like an Ohio port authority Private financing 6

7 Benefits 100% financing no upfront cash investment Long term financing up to 20 years No payoff upon sale assessment remains with property Should be able to attract lower interest rates May be treated as off balance sheet financing Non-recourse, non-accelerating financing 7

8 Difficulties Need to convince local government to create an energy SID Assessment most likely senior to any debt Will most likely need approval of lenders and investors First deal will take longer and cost more than anticipated 8

9 SID-Friendly Local Governments Known PACE programs in Ohio: Cincinnati Cleveland Lake County Toledo 9

10 It Can Be Done First multifamily deal using PACE closed last year in Washington, DC 139 Units LIHTC, HOPE VI property Energy improvements cost of $290,000 Rate of 6% with amortization over 20 years with 10 year term 10

11 Contact Information Dave Evans Evans Multifamily Services LLC Mobile

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13 Why Energy Efficiency? Helps customers become more efficient, competitive and productive Waste Less! Delays new generation and related rate/environmental impacts Provides the lowest cost alternative to new generation Creates sustainable green jobs in Ohio State mandates certain EE activity, but AEP Ohio leads way Opportunity for customers and shareholders to WIN

14 Why Energy Efficiency?

15 Business Programs AEP Ohio has business programs for large business that cover: Efficient lighting Efficient HVAC Efficient motors and drives Energy Star food service equipment Data Centers IT servers and UPS as well as IT cooling systems New construction and major renovation (non-residential) Process efficiency Retro-commissioning (building tune-up)

16 Business Programs AEP Ohio s program for small business is called Express Install Customers with annual usage under 200,000 kwh Free assessment Incentives cover an average of 60% of the cost of the energy efficiency measure and are installed by AEP Ohio program contractors Free 6-12 month financing available

17 Residential Programs Smart Lighting Program Instant discount on qualifying CFL/LED bulbs and light fixtures (look for ENERGY STAR label) 400 participating retailers in-store and AEP on-line lighting store Benefits of using CFL s instead of incandescent bulbs? CFL s use approximately 75% less energy CFL s last almost 10 times longer CFL s give off one-quarter as much heat

18 Residential Programs Appliance Recycling 50/50/150 Receive a $50 rebate for Refrigerator Recycling Receive $50 rebate on new energy efficient refrigerators Save over $150 a year on energy costs Free, convenient pickup of your appliance Free up space in your home/garage Program Requirements: Must be cubic feet in size Must be operational at time of pickup

19 Residential Programs Appliance Rebate Program $25 rebate ENERGY STAR Television ENERGY STAR Dehumidifier $50 rebate ENERGY STAR Refrigerator ENERGY STAR Freezer ENERGY STAR Clothes Washer $500 rebate ENERGY STAR Electric Heat Pump Water Heater Rebate available on-line

20 Residential Programs In-Home Energy Program (Option One 1 hour) Customers pay $25 for assessment and installation of the select energy efficiency measures: Up to 12 CFLs Low flow showerhead (if electric hot water) Faucet aerators (if electric hot water) LED nightlight Pipe wrap for the water heater (if electric hot water) Customer will receive a prioritized list of additional improvements that will save energy Customer eligible for rebates For program details, call

21 Residential Programs In-Home Energy Program (Option Two 4 hour) Comprehensive, four-hour In-home Audit $50 for all-electric homes Receive same measures as Option One Receive more extensive diagnostics and computer modeling of how the home uses energy Receive a prioritized list of additional improvements that will save energy that includes a payback analysis Eligible for rebates For program details, call

22 Residential Programs Online Energy Checkup (Free) Customer completes step-by-step profile of their home Report shows how home uses energy and ways to save Customer receives free energy efficiency measures: 5 CFLs and LED nightlight Depending on how home is heated, cooled and how water is heated:» Low flow showerhead, faucet aerators, pipe wrap for the water heater» Weather-strip, draft stoppers Customer eligible for rebates Program details at

23 In-home Energy Program Rebates

24 Residential Programs Community Assistance Program (CAP) Customers living on low or fixed incomes (GI at/below 200% of poverty level) may be eligible to receive weatherization assistance or repair services. To qualify, customers must be approved for an energy assistance program such as PIPP, HEAP, or HWAP Learn more by contacting local community action agency

25 Residential Programs Energy Star New Homes Program (Builder Program) Provides incentives to builders to help off-set the cost for building energy efficient homes Homes are built to be 30-50% more energy efficient than typical code built homes Savings gained from lower utility costs can help customers buy/build MORE home

26 Thank You

27 Customer Energy Efficiency Incentives Megan Melby, Team Leader, New Buildings Demand Side Management Ohio Housing Conference Going Green: Energy Incentives Roundtable November 6, 2014

28 Company Profile Largest Natural Gas Utility in Ohio Total Customers: 1.4 Million Miles of Distribution Main: Over 20,000 Service Territory: 61 of 88 Counties Started doing energy efficiency for customers in

29 Columbia Gas History in Energy Efficiency/DSM DSM Energy Audits DSM WarmChoice DSM DSM Portfolio Since 1983 Columbia Gas of Ohio has provided Energy Efficiency services to its customers 1983 Residential Conservation Service (RCS) Energy Audits (Operation Home Check) 1986 Columbia Ohio Weatherization Program 1987 WarmChoice 2009 DSM Portfolio 2012 DSM Portfolio expansion/continuation 3

30 Residential, retrofit programs Program/Service Customer Segment/Market Incentives No cost whole house WarmChoice TM weatherization; $750 : In-home diagnostic Income<=150%FPG, High use and/or contribution from COH inspection, no cost weatherization PIPP, Owners & Landlords toward LL furnace replacement Home Performance Solutions: In-home diagnostic energy audit, installation of EE showerhead and programmable thermostat, if needed, discounts on qualifying ECMs Tier: Assisted Older homes with gas usage of >=1000 ccf; income >150% FPG and <=80% AMI Tier: Gold "; 60+ years old, <=100% AMI Tier: Standard "; Income>100% AMI $20 energy audit, customer pays $250 for weatherization, $1000 discount on HE furnace $20 energy audit, $500 for weatherization, $1000 discount on HE furnace $50 energy audit, ~30-60% discounts on attic and wall insulation, air sealing, $ high efficiency furnace; higher incentives for multiple ECMs 4

31 Residential, new homes program 5

32 Commercial, custom Innovative Energy Solutions Product/Service Customer Segment/Market Incentives Energy Audit 50%, up to $5000; match/partnerships encouraged ECMs Commercial for-/non-profit companies/orgs with gas Research/Demonstration usage of >=3000 ccf/year projects 50%, SIR >=1 Experimental Technologies 100% Building Commissioning, Recommissioning 50%, SIR >=1 50%, up to $100k; energy audit or equivalent required; ECMs with SIR >=1 6

33 New programs and services expanding in 2015 Energy Star Portfolio Manager Energy Design Solutions To find out which Energy Efficiency program is a fit for your new or existing project, call Columbia Gas of Ohio and we ll be happy to work with you we ve got a program for everyone! 7

34 Program information WarmChoice Call or visit ColumbiaGasOhio.com/WarmChoice to find the provider for your county Home Performance Solutions Call or visit ColumbiaGasOhio.com/HPS to schedule an energy audit 8

35 Program Information EfficiencyCrafted Homes Call or visit EfficiencyCraftedHomes.com Innovative Energy Solutions Call or visit ColumbiaGasOhio.com/IES 9

36 Contact information Megan Melby, Team Leader, New Buildings, Demand Side Management Columbia Gas of Ohio : Office : Cell Thank you! 10

37 National Church Residences Energy Strategies Ohio Housing Conference Columbus, Ohio November 6 th, 2014

38 National Church Residences Portfolio Statistics # of properties in US and Puerto Rico 340 # of states with properties 28 # of residents served 24,000 Assets managed $1.4 Billion

39 National Church Residences Utility Account Overview Utility Accounts Overview # of Managed Utility Accounts 1,122 Annual Managed Utility Spend $15,174,352 Water/Sewer 337 Accounts $5,078,528 33% Electric 528 Accounts $7,731,746 51% Gas 257 Accounts $2,364,078 16%

40 National Church Residences Energy, Engineering, & Procurement Capital projects and planning Equipment specifications Project and rehab management Engineering Energy management Energy initiatives Water conservation Energy contracts Benchmarking Energy HVAC PM Elevator PM Emergency call systems Appliances Capital Needs Assessments (CNA s) National Procurement Insurance Premium allocation Loss control Safety committee Maintenance training Risk Management

41 National Church Residences Energy Initiatives Commodity procurement Utility allowances Renewable energy Supply-Side Management Lighting HVAC Water heating Water conservation Energy management systems (EMS) Demand-Side Management Utility data Payment processing Invoice validation Energy budgets Rate analysis Benchmarking Utility Data Management Energy efficiency Indoor air quality Clean/healthy living Waste management Green Buildings

42 National Church Residences Utility Rebates & Incentives Given National Church Residences portfolio size and depth, there is no centralized process for researching and obtaining utility rebates and incentives, however the following methods and resources are utilized: Property managers are encouraged through internal policies to research rebates when replacing energyrelated equipment Contractors are requested to include all rebates and incentives as part of the work they are doing Various utility incentive resources are utilized include DSIRE USA, Energy Star, and the utility websites

43 National Church Residences Utility Rebates & Incentives There are also several barriers that limit the ability to research and receive rebates and incentives, including the following: Limited bandwidth within organization restricts ability to research and obtain incentives Applications and paperwork, as well as programs themselves, can be complex and confusing Utilities offer incentives for simple energy efficiency measures but incentives for larger capital items are minimal

44 National Church Residences Utility Data Challenges Identifying the Need for Utility Invoice Management Large Portfolio Many locations in different regions High combined utility spend Billing Problems Unexplained increased costs Multiple late fees These are all issues that the National Church Residences Housing portfolio was experiencing Energy Initiatives Energy benchmarking Tracking savings

45 National Church Residences Utility Invoice Management CASS receives invoice from vendor Invoice is keyed for data, converted to electronic format, and a check is mailed to the vendor CASS provides a data feed to Ecova This includes bill image, consumption, dollars spent, and more Ecova provides a clean view of the CASS data which allows for data reporting and auditing services This is the end product for our utility purposes

46 National Church Residences Utility Invoice Management Integrating Portfolio Data into Data Management System G/L Data (2007) Utility supplier name Invoice dollars Invoice date Required Utility Data (2008) Consumption Late fees Meter reading dates Utility rate Property Data (2008/09) Utility metering type (master, common) Type of HVAC & water heating Building type (high-rise, townhouse, etc.) Integrating New Properties into Data Management Systems Data Collection Past 12 months of invoices Property data collected through Site Maintenance Form Data Upload Submit data to Cass and Ecova electronically Historical data is loaded Billing information updated Data Management Invoices are automatically paid Data is audited on a regular basis Data is available for reporting and budgeting services

47 National Church Residences Ecova Invoice Manager Property information uploaded from data form submitted to Ecova Accounts loaded into Ecova for the selected property History for an account can be viewed dating back to the first invoice that was loaded

48 National Church Residences Invoice Management Savings Ecova s auditing services validate billing accuracy and saves National Church Residences significant money by identifying the following billing issues: Inappropriate Rates Meter Inaccuracies/Leaks Meter Reading Errors Late Fees

49 National Church Residences Invoice Management Savings 16%

50 National Church Residences Invoice Management Savings Cost of Services: $75, Month Savings: $222,000

51 National Church Residences Lighting Retrofit Survey Properties Collected lighting data from properties to determine candidates Select Program Partnered with Utilities Dynamics to retrofit 105 properties (7,736 units) Retrofit & Evaluate Savings were evaluated by comparing preretrofit kwh to post-retrofit kwh Cost: $1.1 million Savings: $300k/Yr Payback: 3.6 Yrs Carbon reduction of 6.2 million lbs / year Same as emissions from o ~400 cars o ~500 acres of forest

52 National Church Residences Energy Benchmarking General Use NCR Responsibility for Tenant s Water Heating Space Heating Space Cooling NCR Properties 1 Y Y Y Y Y Y Y 0 3 Y Y Y 0 4 Y Y 0 5 Y Y Y 19 6 Y Y 50 7 Y Y 0 8 Y 65 9 Y Y 0 10 Y 3 11 Y Using utility data and property profile information, portfolios can be benchmarked for energy There are theoretically 12 property profiles depending on what tenant energy is provided by the owner as opposed to the tenant However, NCR properties fall into 6 profiles NCR s benchmarking will be based on the 6 profiles to ensure appropriate comparison of properties

53 National Church Residences Energy Benchmarking

54 National Church Residences Energy Benchmarking Once benchmarking has been completed, energy outliers can be targeted for energy initiatives The best way to identify effective energy initiatives with a timely payback is to have an energy audit performed on the appropriate properties HOWEVER, it is highly recommended the auditing company commit to performing retrofits so that savings can be tied directly to the audit results

55 Common Reasons for High Resident Water Consumption Resident habits. Residents often aren t aware of leaks or don t report them when discovered. Water conservation tips aren t provided to residents (many residents see no relationship between the amount of water they use and their cost to live in the property). Older fixtures. Poor or aging plumbing.

56 Water Consumption Statistics 45% of water use in the average American home occurs in the bathroom with 27% being used by toilets. Showering accounts for almost 17% of residential water use indoors. Replacing an older showerhead can save us to 50% in water usage. Bathroom and kitchen sinks account for 16% of the water used in the average American home. Replacing older faucet aerators can save up to 40% of water used.

57 Water Consumption Statistics How much water does a leaking faucet waste? If leaking four drips per minute: -Over a half gallon per day -Over 17 gallons per month -Over 211 gallons per year If leaking a steady stream (5 drips/second): -Over a 43 gallons per day -Over 1,250 gallons per month -Over 15,768 per year

58 National Church Residences Water Conservation Initiative In order to most effectively tackle water efficiency initiatives, it is best to target high consumers within a portfolio. Benchmarking is critical in identifying these properties and ensuring that both savings and water reduction are being maximized. Water Benchmarking Process Collect at least 1 year of water and sewer bills for every property The average of all properties consumption is the benchmark A top-down approach should be used for retrofits targeting high consumers first Standardize annual consumption into gallons per person per day Investigate anomalies for data errors or inconsistencies and correct or remove Once retrofits are complete, compare post-retrofit data to pre-retrofit data to determine savings

59 National Church Residences Water Conservation Initiative Abnormally high consumption is typically driven by high irrigation usage, water leaks, or meter errors 2011 Water Consumption Benchmark: G/P/D Abnormally low consumption is typically driven by meter errors and data inconsistencies

60 National Church Residences Water Conservation Initiative Identifying Retrofit Candidates 1. Determine outlier parameters In this case, National Church Residences chose properties 25% higher than the benchmark Water Consumption Outliers 2011 Water Consumption Benchmark: G/P/D 2. Evaluate costs vs. savings Decide a target payback and ensure targeted properties will achieve organizational goals

61 National Church Residences Water Conservation Initiative Phase 1 Pilot Surveyed select properties and evaluated 12-month water history Phase 2 Beta Surveyed select properties based on location (high water rates) and age Phase 3 Roll-Out Benchmarked portfolio for outliers; targeted sites w/ < 12 mo. payback Evaluated 13 properties 1,401 units Evaluated GA, LA, and MI 40 properties 5,265 units Evaluated All properties 170 properties 13,770 units Implemented 1 property 167 units Implemented 4 properties 692 units Implemented 32 properties 2,822 units Financials Cost: $24,000 Savings: $26,000 Payback: 11 months Financials Cost: $54,213 Savings: $81,834 Payback: 8 months Financials Cost: $201,700 Savings: $332,285 Payback: 7 months

62 National Church Residences Water Conservation Initiative Portfolio Savings Analysis Properties Implemented: 37 Total Project Cost: $268,243 Total Annual Project Savings: $440,119 Average Payback: 7 Months 2011 Water Consumption Benchmark: G/P/D 2013 Water Consumption Benchmark: G/P/D Legend Pre-Retrofit Post-Retrofit

63 Other Factors Impacting Water Consumption While retrofitting aerators, showerheads, and toilets is the easiest and most cost-effective solution to water management, there are other factors that can drive high consumption. Anomalies Water Leaks Faulty Equipment Meter Errors Irrigation

64 Other Factors Impacting Water Consumption National Church Residences has developed the following strategies to better deal with water leaks, faulty equipment, meter errors, irrigation management, and other factors that contribute to high water consumption Data Management Services Organizational Energy Policy Utilizes third-party data management company for utility data analysis Auditing services monitor consumption and costs for anomalies and work with property to determine and resolve issue Quickly identifies water leaks, faulty equipment, meter and billing errors, etc. Addresses all aspects of energy that would impact a property Specifically addresses water management and provides guidelines for checking for leaks, installing low-flow equipment, and sets irrigation standards

65 Thank you! Alan Mileti Utility & Procurement Specialist Engineering, Energy, & Procurement Services National Church Residences