Natural Gas Programs

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2011 Conservation
& Load Management
Programs
Energy Efficiency & Background
The overall vision for the future evolution of the CEEF C&I programs is to cost-effectively
support a sustainable and competitive business climate for Connecticut’s businesses and
industries based on bottom-line solutions for economic competitiveness, environmental
stewardship, and social responsibility.
Connecticut Energy Efficiency Fund (CEEF) was created in 1998 by CT State
Legislature
Energy efficiency is a valuable resource

Reduces air pollutants and greenhouse gases

Creates monetary savings for customers

Reduces need for more energy generation

Creates jobs
CEEF Programs
 Offer technical assistance to commercial & industrial customers who
want to improve energy efficiency
 Offer financial incentives to help implement energy-efficient measures
 No. 8 ranking in ACEEE’s 2010 State Scorecard
 Support economic growth in Connecticut*
– Creates more than 2,675 direct jobs
– Acts as an economic development engine creating businesses to deliver energy
efficiency services
*CT Renewable Energy / Energy Efficiency Economy Baseline Study - March 27, 2009
Program Administration
Connecticut Department
of
Public Utility Control
Energy Conservation
Management Board
Municipalities
Bozrah Light & Power
Groton Utilities
Jewett City Dept. of Public Utilities
Norwich Public Utilities
South Norwalk Electric & Water
Third Taxing District
Wallingford Electric
Electric Companies
Connecticut Light & Power
United Illuminating
Natural Gas Companies
Connecticut Natural Gas
Southern Connecticut Gas
Yankee Gas
CEEF Fund Sources
 Funding is generated from electric and natural gas utility
customers
– Electric customers pay 3 mils per kilowatt-hour
 Funding is generated from natural gas utility customers
– Natural gas programs are funded through gas utility bills and
approved by the Department of Public Utility Control
– Programs are for firm gas customers only
2011 C&I Program Budgets*
Incentives
CL&P $26,493,000
UI
$ 6,482,278
YGS
$ 2,149,672
CNG
$ 1,512,321
SCG
$ 1,331,253
% committed
~ 86%
~ 25%
~ 50%
~ 40%
~ 15%
*Incentive budgets only
Proposed – Pending DPUC Approval (Dockets 10-10-03 & 10-10-04)
Includes CEEF, RGGI, ODR and ARRA Funds
2011 Project Incentive Caps
 $750,000 Cap (cumulative total all programs) per Federal Tax ID
per year
 $150,000 Cap per metered site per program per year
 $100,000 Financing Cap per Municipality per project
 $400,000 Financing Cap per Municipality per year
 Gas Incentives ≥ $100,000 require DPUC approval
The Incentive Cap does not apply to natural gas projects
Commercial & Industrial Programs
New Construction,
Major Renovation &
Equipment
Replacement
PRIME
Retrofit
Projects &
Small
Business
Operations &
Maintenance
Projects
Loans &
Financing
Retro
Commissioning
Load
Management
Energy Conscious Blueprint (ECB)
 Designed to capture electric and natural gas energy
savings when they are most cost effective - during the
design phase of new construction, major (gut)
renovation or adding new equipment.
 Typically referred to as lost opportunities
ECB - Custom – New Construction
(Whole Building Performance)
Designed to encourage integrated designs & high performance bldgs.
 Model Subsidy



Base or “Code” Building Model
High Performance Building Model
$1000
$5000 Maximum
Building /System Compliance (Installation)

Whole Building Incentive (% better than code/$/sq ft)
–
–
–
–
–
–

10%
11% -15%
16% -20%
21% - 25%
26% - 29%
> 30%
$0.15/ sf
$0.30/ sf
$0.60/ sf
$1.00/ sf
$1.50/ sf
$2.00/ sf
Certification Bonus
– LEED Silver / 2 Green Globes
– LEED Gold / 3 Green Globes
– LEED Platnium / 4 Green Globes
$ 5,000
$10,000
$15,000
ECB - Prescriptive
Lighting System Related Projects
 Lighting designs/installations ≥ 10% less than code
– Incentives = lesser of $0.15/sq ft or $50/fixture
 Lighting designs/installations ≥ 30% less than code
– Incentives = lesser of $0.50/sq feet or $50/fixture
 Occupancy Sensors $20/fixture controlled
– Buildings over 5,000 sq. ft. must have lighting control strategy
(as required by code)
 Subject To Utility Caps
* Code = ASHRAE 90.1-2004 (all addenda)
ECB - Prescriptive
(continued)
For non-lighting system related projects:

We pay up to 95% of the incremental cost for new construction
and up to 75% for equipment replacement

We measure the incremental cost and the energy savings relative
to Building Code* or reasonable & customary design practices

Agreement is prepared and signed prior to ordering equipment &
materials, or construction

Subject to Utility Caps
*Code = ASHRAE 90.1-2004 (all addenda)
Specific Examples
New construction
High reflectivity roofing
HE lighting, including w/occupancy sensors
HE brine chillers
HE heat pump loop system
HE rooftop HVAC units
Water-to-air heat wheels
Variable frequency drives w/ HE motors on fans, pumps & kitchen hoods
Oversized cooling towers
CO2 control for air handling units
Energy Opportunities (EO)
 Designed to improve the energy efficiency of
customers’ existing facilities via retrofit opportunities.
 Retrofit: to voluntarily exchange or modify inefficient,
functioning equipment with high-efficiency alternatives
(for the sole purpose of saving $)
EO
(continued)
 Replace inefficient building systems
 Lighting system replacements
& controls
 Heating & cooling system upgrades
 Process system upgrades
 Building control systems & repair
 Incentives designed to pay up to 50% of the
retrofit cost for qualified projects
EO
(continued)
For Lighting & non lighting system projects
 We can pay up to 40% of the installed cost of the energyefficient system change.
– Up to 40% for qualified LED / Induction lighting technologies
– Interior or exterior applications
 Lighting design must exceed Code by at least 15%.
If not, use Express Lighting Rebate Application
 We measure the installed cost and the energy savings relative
to what currently exists
 Agreement is prepared and signed prior to ordering equipment
& materials
Comprehensive Initiative
A Comprehensive project is defined by the following criteria:

Must have energy savings from at least two electric end uses and at least
two measures
– Gas measures within the project are not considered by the criteria

One end use must equal 85 percent or less of the project’s energy savings
or peak summer demand reduction value (based on $0.35 per annual kWh
or $1000 per kW).

The remaining end use(s) must equal 15 percent or more of the project’s
energy savings or peak summer demand reduction value (based on $0.35
per annual kWh or $1000 per kW).
* For more information, contact your Utility Representative.
Comprehensive Incentives
• Lesser of:
– 50% installed cost (electric portion only)
– Buy-down of project to 2–year payback based on customer
electric metered savings
– Energy savings caps based on the greater of $0.35 /annual
kWh or $1000/summer peak kW combined
 Additional comprehensive incentives for firm gas
projects:
– 10% added to all qualifying gas measures
Operations & Maintenance

Improve electrical & gas efficiency of equipment through
changes/repairs

Not intended for normal preventive maintenance, repetitive
procedures for a customer on a regular basis, or to subsidize
major equipment purchases
Typical Measures
- EMS maintenance, i.e., replacement of defective sensors, relays and
actuators, reprogramming
- Compressed air system improvements (repair of leaks)
Incentives
- Up to 40% of installed costs
Retro-Commissioning (RCx)

Provides technical, engineering & implementation support to optimize the
operation of your facility with out installing capital equipment

Improve electrical and/or gas efficiency through changes or repairs Reset
chiller discharge temperature

Reset pump and fan speeds; Demand ventilation
Optimization of AHU supply fan static pressure
Broaden humidity set points in data centers
Boiler optimization
Confirm sequence of operations for EMS equipment
Facilities must be ≥ 100,000 sq. ft. with Direct Digital Control system that
can conduct trending & reporting
-
Incentives up to 100% for investigation fees (implementation required)
Incentives up to 40% for the implementation costs
PRIME
(Process Reengineering for Increased Manufacturing Efficiency)
 Increase productivity and reduces per-unit energy usage through
Lean Manufacturing Techniques and the Kaizen process
 Focuses on industrial manufacturing processes
 Typical benefits
– Reduces waste of material, time and transportation
– Reduces inventory requirements
 Using utility approved contractors, the first two events are provided
at no cost to the customer. The customer shares 50% of the cost
for up to two subsequent events
Business Sustainability Challenge
 Utilizes a holistic approach to educating customers on the value of
managing energy as a resource
 Makes energy and carbon management an integral and
sustainable part of your business
 Provides businesses an opportunity to achieve long-term
sustainability through:
− energy management practices and investments
− defined environmental/sustainable objectives
− continuous improvement objectives
Small Business Energy
Advantage (SBEA)
 Retrofit program for C&I customers with ≤ 200 kW average billing
demand
 Audits and installation provided by approved contractors
 0% financing for qualifying customers
 Maximum loan amount - $100,000
 On the Bill repayment available
 Maximum Loan Term
– UI - 48 months
– CL&P - 36 months
SBEA
 Typical measures include:
–
–
–
–
–
–
–
Energy-efficient lighting,
Lighting controls,
Refrigeration equipment and controls,
Compressed air systems,
Variable speed drives,
Energy management systems
Programmable T-stats, etc.
 Incentives up to 40% of installed costs for eligible measures
 Eligible comprehensive projects can earn incentives up to 50% of
the installed costs
 Subject to utility caps
Loans & Financing
 2011 SBEA & Municipal Financing
– 0% Interest free loan with On Bill Repayment
– $100,000 Maximum Loan (per qualified project)
– Maximum Loan Terms
• UI - 48 months; CL&P - 36 months
– Customer size
• up to 200 kW
– Requires good bill payment history with utility
– Utilities provide the funding source
Loans & Financing
 2011 Small C&I Energy Efficiency Loan
–
–
–
–
Third-party lender and loan approval
Subsidized low interest loan - ~7%
Maximum Term = 5 yrs
Loans between $2,000 and $250,000 with interest subsidies on
the first $100,000
– Customer eligibility
• in business for at least 3 years
• avg 12 month demand greater than 10 kW up to 350 kW
– Projects not eligible
• Projects utilizing SBEA or Municipal Financing
• Any new construction/major renovation projects
Other Financing Opportunities
Connecticut Hospital Association (CHA)

Helps Connecticut hospitals finance major energy-efficiency projects.
– Contact - Bob Sandler
– (203) 294-7312
Department of Public Utility Control (DPUC) - offers loans to C&I customers for installing
distributed generation equipment & energy efficiency projects that reduce system demand.
 3rd Party - Bank of America
 One percent below Customer’s applicable rate or no more than the prime rate
 Minimum Loan Amount $1,000,000
– Contact - Courtney Guzman (Bank of America)
• (617) 434-2888
• courtney.guzman@bankofamerica.com
– Contact - Maureen Hoffman (DPUC)
• (860) 827-2811
• maureen.hoffman@po.state.ct.us
• DPUC Web Information: http://www.ct.gov/dpuc/cwp/view.asp?a=3356&q=419794
Tax Incentives
 Energy-efficient Commercial Buildings Tax Deduction
(projects completed before Jan.1, 2014)
 Renewable-energy Tax Credits And Grants
 Qualifying Advanced Energy Project Investment Tax Credit
– More Info:
•
•
•
•
•
www.efficientbuildings.org
www.energytaxincentives.org/business
www.dsireusa.org
www.irs.gov/irb/2006-26_IRB/ar11.html
www.treas.gov/recovery
Tax Incentives
Tax Deduction vs. Tax Credit
 A deduction is a cost subtracted from the adjusted gross
income when calculating the taxable income; tax liability is not
reduced dollar for dollar like a tax credit, but in proportion to
the tax payer’s tax bracket
 Commercial Buildings Tax Deduction (all systems) capped at
$1.80 per sq ft
 Commercial Buildings Tax Deduction (partial systems) capped
at $.60 per sq ft
 Consult EPAct 2005 and IRS Notice 2006-52 for qualifications

Courtesy of www.efficientbuilidngs.org and www.lightingtaxdeduction.org/tax_deduction.html
Upcoming Training Events
 March – Energy Basics
 April – LEED, An Overview
 May – Building Performance Modeling: Equest
(Interactive)
 May – O&M Best Practices
 June – Commissioning
 June – RetroCommissioning
Check CL&P/UI Web Site Events Calendars For Updates/Registration
Summary
 CEEF offers significant monetary assistance for energy
efficiency
– UI offers funding, financing and technical assistance
 CT is a national leader when it comes to implementing
the Energy Efficiency programs
 Maximize the “Double Dip”
− CEEF $$$; Federal Tax $$$
How Do You Get Involved?
 Pre-design / Design Phase
 Become aware of utility incentive programs
 Engage a utility representative throughout project
 Sign a Standard Agreement prior to proceeding
with the project
UI Contacts
• UI Account Managers
– Nick Cerjanec, Larry Mai, Tom Marella, Roger Parisi, John Albini,
Barbara Pellicano, Gary Pattavina, Rick Valine, Chuck Winchell
• Energy Engineers
– Ken Bouchard, Mike Doucette, Mike Guarino, Dick Lombardo,
Pat Reavy, John Sigona, Mike Stein
• C&I Programs Roy W. Haller (203) 499-2025
• Residential Programs Chris Ehlert (203) 499-2965
• Natural Gas Programs Roy W. Haller (203) 499-2025
CL&P Contacts
New Construction (ECB): Lomont White (860) 665-3790
Retrofit (EO): John Matchett (860) 665-3054
O&M/RCx: Dave McIntosh (203) 352-5457
Cool Choice/MotorUp Rebates: Dave Hayward (860) 665-3386
Express Lighting Rebates: Dave Hayward (860) 665-3386
Small Business: Randy Vagnini (860) 832-4753
Financing: Randy Vagnini (860) 832-4753
PRIME: Rich Asselin (860) 665-3292
Residential Programs: Joe Swift (860) 832-4936
Natural Gas Programs: Rich Asselin (860) 665-3292
CL&P Account Executives
Web Information
CEEF/DPUC www.CTEnergyInfo.com
CL&P
www.cl-p.com
UI
www.uinet.com
Yankee Gas
www.yankeegas.com
CNG
www.cngcorp.com
SCG
www.soconngas.com
CCEF
www.ctcleanenergy.com
Questions?
Michelle LeMoine, Marketing Representative
Conservation & Load Management
The United Illuminating Co.
Office 203-499-5828
Michelle.LeMoine@uinet.com
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