Tapping the Energy Efficiency and Conservation Loan Program | For Utilities

Why address multi-family energy efficiency? Load reduction is inevitable. How will you address it? While overall energy usage continues to grow, multiple external pressures are driving increased focus on energy consumption and efficiency, especially within the multi-family housing sector. Growing number of utility-focused federal, state, & local energy efficiency requirements More local governments requiring multifamily buildings to report energy consumption Sources: 1. Urban Land, 3. EIA, 4. HUD, 5. Demand InstituteUrban LandEIAHUDDemand Institute Residential end use energy intensity (per sq. ft.) continues to decline 3 Multi-family housing is older and has higher potential for energy efficiency than other housing stock 4 “Satisfaction gap” exists between customers’ desire for and realization of energy efficient homes 5 Customers expect utilities to keep costs of energy low to ensure affordable homes 1

How can EECLP help? What if you had an opportunity to…. Utilities can anticipate and mitigate the impact of these changes in part through the Energy Efficiency and Conservation Loan Program (EECLP) of the Rural Utilities Service (RUS) at USDA. Address Regulatory Requirements? Mitigate Risk? Improve Customer Satisfaction? Address existing and pending federal, state or local requirements by providing measurable reductions in energy usage EECLP can help… Generate new revenue streams through on-bill financing, reduce peak demand, and increase load reliability with targeted retrofits Meet customer needs by helping upgrade outdated buildings, deliver desired retrofits, and reduce utility spend for individuals in rural communities 2

What is EECLP? EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing. RUS Lends at treasury rates + 1/8th UtilityCustomer Retrofit Implementer Re-lends to customer Directly funds retrofit projects Executes retrofit projects Re-pays retrofit project costs/ loan Rural Dev. Supports EECLP application process Provides utility market share advantage Helps increase customer satisfaction Advances rural prosperity Helps meet energy efficiency and regulatory requirements Creates new revenue stream Hedges against risk EECLP Benefits 3

What is EECLP? EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing. RUS Lends at treasury rates + 1/8th UtilityCustomer Retrofit Implementer Re-lends to customer Directly funds retrofit projects Executes retrofit projects Re-pays retrofit project costs/ loan Rural Dev. Supports EECLP application process EECLP Fast Facts Eligibility Electric service providers in rural areas (pop. < 20K) served by RUS Loan Terms Tied to the useful life of the asset Typically 15 years Sample Projects Energy efficiency and conservation projects (e.g., on-bill financing) Weatherization, HVAC and water heater upgrades Fuel cells Energy audits Utility energy services contracts Consumer education and outreach programs, and Re-lamping for more efficient lighting 4

State Energy Program Rural Co-op 1 1 State ids interested co-ops 2 2 *Co-ops agree; Begin EEP Planning RHS + Industry Trade Group RHS & Industry Trade Group ids interested housing owners Multifamily Housing Owners 2 2 Owners agree; Begin estimating investment need 1 1 Complete estimation; Receive quotes Identify MFH Buildings in Service Area (Optional) EEP Development Workshop 4 4 Develop funding request business case 4 4 Investment Decision Workshop to Select Retrofit Projects 5 5 *Note: While Rural Co-Ops are shown here, EECLP is available to all Electric Utilities What are the next steps? 5