New York State Energy Research and Development Authority Hello I am from the New York State Energy Research and Development Authority, also known as NYSERDA. NYSERDA is a Public Benefit Corporation. Mission: Advance innovative energy solutions in ways that improve New York’s economy and environment Vision: Serve as a catalyst – advancing energy innovation, technology, and investment; transforming New York’s economy; and empowering people to choose clean and efficient energy as part of their everyday lives

Agenda NYSERDA’s CFA Programs Net Zero Energy for Economic Development Industrial Process Efficiency Commercial New Construction Additional Commercial / Industrial Programs Carbon Challenge Program On-site Energy Manager NYSERDA’s new program that is offered through this year’s CFA as a competitive program is the Net Zero Energy for Economic Development Program. In addition to this new offering, we are continuing our previous program offerings through the CFA including the IPE, CNCP, and Flex tech programs. I will also be discussing NYSERDA’s Commercial/Industrial Carbon Challenge Program and the On-site Energy Manager Program, which are not part of the CFA, but I think may be of interest to you. For all the programs listed here, except for one caveat I will explain on another slide, the site must pay into the System Benefits Charge to be eligible to participate.

NYSERDA’s New CFA Program Net Zero Energy for Economic Development Program One stop service for incentives Streamlined program requirements Phased payments to match outlays Multi-year program NYSERDA’s new program that is offered through this year’s CFA as a competitive program is the Net Zero Energy for Economic Development Program. This program has been structured to provide single-point access for all NYSERDA incentives, streamline requirements and align payments of incentives to address cash flow issues. The program is also funded through the Clean Energy Fund to be offered for a total of five years, so projects that do not meet the deadline for this round, should anticipate applying for the next round. Applications for Round 8 must be received by the close of the CFA on July 27th.

Net Zero Energy for Economic Development Support REDC & State Priorities Supports the local REDC Strategic Plan In an REDC stated Economic Cluster Supports State Priority Issue Areas Geographic Distribution Opportunity Available Statewide Long Island REDC- not required to pay the System Benefits Charge (SBC) All other REDCs- projects must pay SBC The Project’s Regional Economic Development Council will be awarding 20 points of the Project’s final score. In addition to those 20 points, NYSERDA will also be awarding points based on the project’s alignment with their REDC’s Strategic Plan, such as being in an industry that is one of the REDC’s Economic Clusters, or if the project is aligned with one of the State Priority Issue Areas, such as projects helping veterans, life sciences or downtown revitalization. This opportunity is available across the State, including Long Island. Projects located in the Long Island REDC region are not required to pay into the System Benefits Charge Projects in Capital Region, Central NY, Finger Lakes, Mid Hudson, Mohawk Valley, North Country, NYC, Southern Tier, or Western NY REDC regions, must pay into the System Benefits Charge to be eligible to participate in the program.

Net Zero Energy for Economic Development Eligible Sectors Agricultural Facilities Commercial Facilities (not including multifamily or retail) Municipalities (Local Government) State Agencies & Other State Government Healthcare Facilities Public & Private K-12 schools Warehouses & Distribution Colleges & Universities Light Industrial Not-for-Profit Corporations Wastewater Treatment Plants Mixed Use Food Processing Facilities These are the eligible industry sectors for the Net Zero Energy for Economic Development Program. Eligible projects may be new construction or may be a renovation to an existing facility. Capital improvements made to a facility prior to a signed agreement with NYSERDA will not qualify for an incentive, but design costs incurred prior to a signed agreement may be eligible.

Net Zero Energy for Economic Development Net Zero Energy Performance An energy efficient facility where the actual annual energy used on site is less than or equal to the on-site renewable energy produced Includes all Technologies Energy efficiency, renewable energy, battery storage, electric vehicle charging stations, etc. Process Loads The definition of NZE for the purposes of this program is: An energy efficient facility where the actual annual energy used on site is less than or equal to the on-site renewable energy produced. The calculation of incentives will include all technologies that contribute to the building achieving net zero energy performance (i.e. energy efficiency, renewable energy, battery storage, electric vehicle charging infrastructure, etc.), thus providing the Applicant with “single-point” access to clean energy incentives for the entire project. NYSERDA, at its sole discretion, may choose to award projects that are designed to be net zero energy capable or other high performing standards. If fossil fuels must be utilized for a project due to energy requirements for process loads, the Applicant must demonstrate that there is not an all-electric process that can replace the fossil fuel usage. In this instance, NYSERDA will consider the project’s use of the US Department of Energy’s Common Definition of Zero Energy Buildings in determining eligibility.

Net Zero Energy for Economic Development Activities & Incentives Eligible Costs Design, Energy Modeling, Energy Efficiency, Renewables, Heat Pumps, Electric Vehicle Charging, Battery Storage Incentives- 70% of Eligible Costs up to $1,000,000 Increased Incentive Cap Downtown Revitalization Initiative, Opportunity Zones, Brownfields, or Stretch Code Communities Eligible Costs include Design, Energy Modeling and Integrated Project Delivery Energy Efficiency Improvements On-site Renewable Energy Systems (photovoltaics, wind, or solar thermal) Ground-Source or Air-Source Heat Pumps Electric Vehicle Charging Stations Battery Storage Or other efficiency or renewable energy technologies. Incentives will be paid for the incremental cost to design and build the project to net zero energy performance above the cost of building to the applicable New York State Energy Conservation Construction Code. Projects will be eligible to receive up to 70% of the Eligible Costs in incentives, up to one million dollars. Projects that receive an award under this Net Zero Energy for Economic Development Program will not be eligible to apply for any other efficiency or renewable energy incentives from NYSERDA or their utility. However, Applicants that are not awarded through this competitive selection process may be eligible to participate in NYSERDA’s Commercial New Construction Program, NYSERDA’s renewable energy programs, or utility programs as applicable. Projects may be eligible for an increased incentive cap, if funding is available, if the project is located in a: In a Downtown Revitalization Initiative area that has submitted a DRI proposal to their REDC Opportunity Zone, designated by the State On a DEC-designated Brownfield Or in a Community that has adopted the NYStretch Code

Additional NYSERDA Programs in the CFA

Industrial and Process Efficiency Program Offers performance-based incentives to offset the cost of energy efficiency projects at manufacturers and data centers Industrial Manufacturing Improvements – produce faster, better and at a lower energy-per-unit cost Throughput increases Scrap reduction Quality improvements Data Center Improvements – optimize IT and facility infrastructure to improve energy per unit of computing Controls optimization Yield improvements Support system upgrades Server upgrades Server virtualization Storage consolidation Airflow management UPS upgrades Cooling system upgrades IPE’s primary goal is to help NY manufacturers and data centers implement productivity and energy efficiency projects that measurably reduce energy consumption on a per-unit-of-production basis. IPE’s incentives can help offset the cost of the energy-efficiency project and improve your return on investment. IPE is available to both existing and new facilities. There are three major buckets of project types: Industrial Manufacturing Improvements Efficiency projects under this category might include: Throughput increases – expand production line capacity while improving energy-per-unit-of-production Scrap reduction – make changes to the production process that result in less waste and increased product competitiveness Quality improvements – reduce process variation and enhance production quality General improvements - controls optimization, yield improvements, support system upgrades such as compressed air, HVAC, etc. Data Center Improvements Projects that improve information technology (IT) efficiency and minimize support system energy consumption. Installation of next-generation servers – invest in new server technology to increase computing capacity with no energy load growth Server virtualization – reduce the number of physical servers to cut energy usage, relieve space constraints, and reduce cooling load Storage consolidation – centralize and share storage resources to provide energy savings General improvements - airflow management, UPS upgrades, cooling system upgrades, and more New Construction IPE can also offset the cost of installing energy-efficient processes and equipment in new industrial and data center facilities with the goal of using energy-efficient design and technologies from the start, to significantly cut operational costs and enhance energy savings in the future.

Commercial New Construction Program Effect a permanent transformation in the way new and substantially renovated buildings are designed and constructed by providing energy related technical and financial support. Program Services: Technical support Financial support Three Support Levels: Level 1 - Overview and Suggestions Level 2 - Energy Analysis and Report Level 3 – Technical and Financial Support for Zero Net Energy, Deep Savings and Smart Buildings Technical Support (All Levels): No-cost or cost shared depending upon Level Added support for Integrated Project Delivery and Advanced HVAC Controls Commissioning Financial Support (Level 3 only): Energy Performance Incentive: Projected greenhouse gas reductions Smart Buildings Incentive: Offset portion of equipment cost The Commercial New Construction Program provides technical and financial support to evaluate and promote energy efficient options in new and substantially renovated commercial buildings. Examples of commercial buildings include state, federal and local governments, businesses, not-for-profits and private institutions, public and private schools, colleges and universities, and health care facilities in New York State. The program requires that a licensed architect or engineer has prepared and certified the construction documents associate with the project. Commercial New Construction technical support providers are architects, engineers, or energy professionals. They work directly with applicants and their project design teams to help identify and analyze energy efficiency opportunities. Commercial New Construction offers three levels of support: Level 1 is described as an overview and suggestion process. A CNCP approved technical consultant will review the applicant’s schematic design phase plans or proposed equipment selections and will provide a summary of energy savings suggestions. Support Level 1 is offered at no cost to applicants. Level 2 is described as an energy analysis and report. A CNCP approved technical consultant will meet with the applicant and their design team to identify and analyze potential energy savings opportunities. The analysis may include computer energy modeling of the building design, accompanied by a report of the analysis. Support Level 2 is offered on a cost shared basis between NYSERDA and the applicant up to a maximum NYSERDA contribution. Level 3 is available to applicants who are pursuing Zero Net Energy, Deep Energy Savings and/or Smart Building projects. For purposes of this program: Zero Net Energy is defined as the annual energy generated by on-site renewable resources matches the building’s annual energy consumption. Deep Energy Savings projects are those where the predicted energy savings are significantly better than a designated energy analysis baseline. Smart Buildings are those that include advanced energy meters and other systems to transform efficiency, comfort and safety for people and building assets. Support Level 3 technical support is offered at no cost to applicants up to a maximum NYSERDA contribution. There is also additional financial support for level 3 projects. Additional financial support maybe available for technical support for advanced HVAC controls commissioning and for applicants who incorporate Integrated Project Delivery in the building design and construction. All support levels are intended for projects at the schematic design phase or earlier, where there is a good opportunity to influence design decisions without delaying project progress. Projects at design development or pre-bid phase may be considered. Projects in construction are not eligible for participation. Facilities must pay into the System Benefits Charge (SBC).

Additional NYSERDA Commercial / Industrial Programs

Commercial & Industrial Carbon Challenge $10 Million pilot for largest energy C&I users in the State Seeking proposals for highly cost-effective Clean Energy Actions Awards ranging from $2 million to $5 million Serves as the single source of support for projects carried out through this program (i.e. cannot receive support from other utility or NYSERDA programs for these same projects) Competitive selection process Large users – minimum 10 MW average annual demand Program Goal: To determine if more flexible program funding can unlock cost-effective energy-related carbon emission reductions $27/mtCO2 reduction - CEF benchmark Overview PON XXXX The C&I carbon challenge is a pilot program being offered by NYSERDA for the largest energy users in New York State. Qualified customers are invited to submit proposals detailing the Clean Energy Actions they would pursue with a program award. Clean Energy Actions are those energy-related actions that demonstrate capacity to reduce carbon emissions, be they energy efficiency measures or distributed energy resource projects. Proposers will establish a Carbon Reduction Goal and indicate the funding necessary to achieve that goal. Proposals will be primarily evaluated on the ratio of the requested award to the Carbon Savings Goal ($/mt) The overall goal is to see if we can better the CEF benchmark of $27/mt CO2e reduction by providing a “one stop shop” for large customers as opposed to multiple different NYSERDA programs The awards can be used to fund Clean Energy Action projects over the 3 year term of the program Projects ineligible for other NYSERDA or utility program funding (i.e. no double dipping) Awardees will receive the benefit of a dedicated NYSERDA project manager with whom they will collaborate on all implemented measures They will also be assigned a Technical Specialist to assist with project scoping, ad-hoc technical guidance as appropriate, and Measurement and Verification plan support Who can apply? C&I Customers with an average annual demand of 10MW or greater at a single site or aggregated across multiple sites (Methodology: Sum of monthly demand/12) Must pay SBC 5 MW of demand must be serviced by a market power source that collects SBC (NOTE: This is to ensure that any NYPA Recharge NY customers are paying enough SBC to qualify; monthly bills typically include a breakdown of the portion of demand serviced by RNY and the portioned provided by the secondary power provider). Important Dates July 10th 5PM ET due date June 13th 11AM Webinar Registration required and info can be found in the link at the bottom of the slide https://www.nyserda.ny.gov/All-Programs/Programs/CI-Carbon-Challenge

On-site Energy Manager (OsEM) Builds on previous Industrial OsEM pilot 6 Industrial OsEM engagements are underway; significant savings opportunities Continues 75% cost share Adds bonus to encourage continuation of role and energy savings Offers flexible participation: Open enrollment solicitation through December 2019 Commercial & Industrial sites are eligible Full or part time OsEM; can be new hire, contracted staff, or hybrid of supplementing permanent staff with contract staff Agreement (Purchase Order) is with applicant (C&I customer) https://www.nyserda.ny.gov/osem On-site Energy Manager (OsEM) PON 3701 builds on the previous Industrial On-site Energy Manager pilot (PON 3334) that has six sites engaged with preliminary estimates from site targets suggesting potentially significant energy savings. Goal of pilots is to demonstrate how a dedicated On-site Energy Manager can improve a company’s profitability by delivering energy, process, and operational improvements. Open enrollment solicitation through December 2019 for Commercial and Industrial sites. The term of the OsEM contract will be a minimum of 12 months and must be completed within 24 months of issuance of the Purchase Order NYSERDA will contribute up to 75% towards the allowable OsEM fees. Per task and budget detail in the approved scope of work. NYSERDA’s cost-share for the OsEM will be paid directly to the Applicant. For Applicants with annual energy costs greater than $1 million (all fuels), the maximum OsEM cost-share excluding bonus payments is $200,000. For Applicants with annual energy costs less than $1 million (all fuels) the maximum OsEM cost-share excluding bonus payments is $100,000. Applicants may be eligible for a bonus payment for each additional year of continued successful OsEM engagement, capped at 2 additional years. Applicants must: • Not have an existing dedicated full time energy manager on-site. • Effectively demonstrate the need for an OsEM OsEM engagements must: • Be at least 0.5 Full Time Equivalent (20 hours per week). • Include cost-sharing in the form of cash support from the customer. In-kind contributions are allowed only in cases where the Applicant utilizes permanent staff. • Use funds for OsEM services only and not for implementation or equipment purchase. 3 paths of participation: • New permanent hire - Applicants seeking new permanent hires must secure the new hire within 3 months of receiving the NYSERDA Purchase Order. • Supplementing permanent staff with contracted staff • Contracted staff - Applicants utilizing contracted support may select a consultant from NYSERDA’s FlexTech Consultant* list, which can be found at www.nyserda.ny.gov/Contractors/Find-a-Contractor/FlexTech-Consultants.

Questions? Lori Borowiak Lori.Borowiak@nyserda.ny.gov (518) 862-1090 ext. 3004 Thank you for your time and attention. If you have questions on this opportunity, please reach out to Lori Borowiak at this phone number or email address.