Programs to Help Municipal Buildings: Save Energy Save Money & Help Protect the Environment Connecticut Energy Efficiency Fund

Background of CT Energy Efficiency Fund Originally created by Legislature in 1998 to provide cost-effective electric energy efficiency and load management programs. In 2005, expanded to include natural gas programs. Electric and gas programs are fully integrated Objectives  Advance the efficient use of energy  Mitigate the negative environmental impact of energy generation  Promote economic development through increased energy reliability and lower energy bills

Energy Efficiency Program Administration CT Dept. of Public Utility Control Electric Utilities Connecticut Light & Power United Illuminating Natural Gas Utilities Connecticut Natural Gas Southern Connecticut Gas Yankee Gas Energy Conservatio n Managemen t 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 Fuel Oil Conservation Board

2008 CT Energy Efficiency Fund Program Results

Achieving Results  Supports 1,500+ existing green collar CT jobs  Provide $4 in benefits for every $1 spent on programs  Ranked No. 3 state by 2008 American Council for an Energy-Efficient Economy Scorecard  Energy efficiency is key to environmental excellence

Funding for CEEF Programs  Money comes from electric and natural gas utility customers. For every kilowatt-hour used, customers pay 3 mils toward energy efficiency programs  Natural gas programs are funded through gas utility bills  Additional funding comes from the CEEF participating in the Regional Greenhouse Gas Initiative, ISO-New England’s Forward Capacity Market, Class III Renewable Energy Credits, federal stimulus dollars

Efficiency First Your town’s energy plans should put energy efficiency first when planning for green energy projects.  Incorporate energy efficiency behaviors into home and work lifestyles  Replace inefficient appliances, electronics, technologies with highly efficient units The cheapest kilowatt is the one not used! It does not make sense to install renewable energy systems or purchase clean energy until you have reduced your energy consumption.

eeCommunities Program For Town Buildings  Sign up for EPA’s Community Energy Challenge. Benchmark town’s buildings to see how they stack up efficiency wise. Work with town’s CL&P Account Executive and eeCommunities Program Administrator Rebecca Meyer to access energy [need municipal officer permission]  Work with CEEF Utility Administrators to perform a high-level walkthrough to determine opportunities for poor performers  Receive technical assistance and financial incentives from the CEEF to help make energy-efficient improvements

EPA Community Energy Challenge CT Towns Ashford Bethany Burlington Canton Chaplin Colchester Coventry Cromwell Danbury Durham East Hampton East Haven East Lyme Fairfield Farmington Haddam Hamden Harwinton Kent Lebanon Manchester Milford New Haven Norfolk Norwalk Portland Redding Ridgefield Simsbury Southington Stamford West Hartford Weston Willimantic Windsor Woodbury Woodstock

EPA Portfolio Manager Fuel Efficiency Rating: MPG Is 10 MPG high or low for an automobile? Is 80 kBtu/sf/yr high or low for a building? Even many building experts don’t know. EPA Energy Performance Rating

Energy Efficiency Behaviors Transforming municipal employees into energy-efficiency stewards  No-cost, low-cost improvements  Incorporating energy-saving behavioral changes into work lifestyle o Let employees know that the building is a poor performer and ask them to turn off lights and equipment o Challenge building occupants to reduce energy consumption o Track progress over two-three month timeframe to see if there is a reduction in energy consumption

CEEF Support: High-Level Walkthrough Once town has benchmarked its buildings, a CEEF/CL&P Administrator and Account Executive will perform a high-level walkthrough to assess the town’s two “worst” buildings’:  Lighting systems  Building control systems  Age of HVAC systems and boilers  General overview of building envelope  Review of preventative maintenance and operations & maintenance processes ** High-level assessment is not an energy audit, it is merely a summary of Utility Administrator’s observations

After High-Level Walk Through by Utilities Municipalities should contact a contractor to provide suggested energy-efficient improvements, potential energy savings and project cost Examples Need to upgrade to energy-efficient lighting. Get lighting contractor(s) to perform energy audit on existing lighting and controls and provide proposal options, cost and energy savings Windows are cracked and need sealing/replacement. Have a contractor assess current windows and propose multiple efficient options, project cost and energy savings

eeCommunities Program For Residents  Sign up households for CEEF’s two in-home service programs: Home Energy Solutions or WRAP (fixed or limited-income) For Green Energy Task Forces, eeCommunities:  Help you organize and mobilize to promote energy efficiency for homes, businesses and your town!  Provide training sessions, i.e. Train the Trainer  Provide educational literature and materials

CEEF Programs for Municipalities & Businesses Retrofit Projects & Small Business Operations & Maintenance Projects New Construction, Major Renovation & Equipment Replacement Loans & Financing Retro Commissioning

CEEF programs can help your municipality save energy and money Involve your utilities early on in building projects! Energy & Dollar Savings Design Pre Construction Phase Post Construction & Occupancy

Capturing electric and gas savings during building design. CEEF offers custom and prescriptive incentives for installing energy-saving measures New Construction, Major Renovations & Equipment Replacement

Encourages entities to replace functioning equipment with more energy-efficient options. CEEF offers incentives and technical assistance to help entities replace old, inefficient Lighting, HVAC, motors, etc. with other energy-saving measures Retrofit & Small Business

Encourages entities to make maintenance procedure improvements that improve electrical and natural gas efficiency through changes and repairs. CEEF provides incentives for repairs or replacements, including Energy Management System maintenance [replacement of defective sensors, relays, etc.] Operations & Maintenance

Program offers technical, engineering and implementation support to help entities optimize operation of their buildings. Incentives offered for energy-saving improvements, such as boiler optimization and demand ventilation Retro Commissioning

Financing: CEEF Municipal Loan  All loan specs are for each project  Interest free financing  Maximum loan term = 36 months  Maximum loan = $100K (CL&P); $65K (UI)  On-bill financing available Qualifying conditions must be met

Financing: Small Business Energy Advantage Loan  All loan specs are for each project  Interest free financing  Maximum loan term = 36 months  Minimum loan amount = $500  Maximum loan = $100K (CL&P); $65K (UI)  On-bill financing available Qualifying conditions must be met

Small Commercial & Industrial Energy Efficiency Financing  All loan specs are for each project  Reduced interest financing  Maximum loan term = 60 months  Minimum loan amount = $2,000  Maximum loan amount = $100,000 Qualifying conditions must be met

Ways to Develop a Project There are multiple options for financing and project managing your municipality’s energy- efficient improvements

Option 1: Performance Contracting  Allows municipality to implement energy- efficient measures without capital/bonding. Contractor collects payment for measures over time on municipality’s energy bills  If performance contractor is working through a government entity/group contract (Ex. CT Conference of Municipalities); municipality may not have to go out to bid

Option 2: Design & Build  Municipality will work one contractor who will perform energy audit, design project’s energy- efficient improvements and build project  Contractor will manage entire project, including all subcontractors  Option gives a municipality speedy turnaround  Municipalities should request open bookkeeping process  Design and build option may not be allowed for some municipalities [required to go out to bid]

Option 3: Plans & Specifications  Municipality hires an architect, engineer or designer to develop plans and specifications for an energy-efficient project  Uses these documents for going out to bid for contractor(s) to install energy-efficient measures

Option 4: Small Business Energy Advantage Program  Competitive bidding already performed by utilities  On-bill financing, zero interest loan allows for improvements without upfront capital requests  Annual energy savings ($) from energy-efficient improvements usually equivalent to annual loan payback amount  Program covers cost of energy audit by contractor

Financing Example Town decides to retrofit existing lighting and HVAC systems for five buildings underneath the CEEF’s retrofit program: Total Project Cost: $ 100,000 CEEF Incentive (40% of cost) -$ 40,000 Remaining Project Cost: $ 60,000 CEEF Municipal Loan* -$ 60,000 $ 0 * Municipal loan is zero percent interest with 3 year payback. Total energy savings are $20K a year ~ equivalent to annual loan payback amount of $20K. Payback is through on-bill financing (O&M budgets)

Home Energy Solutions WRAP Connecticut Energy Efficiency Fund Residential Programs

Home Energy Solutions  Residential energy assessment of home ($75 co-pay for all heating types)  Energy specialists will come to your home: Blower-door test (air leaks) Professionally seal drafts, caulks & leaks in your home Ductwork tests (for central air) Install CFLs (up to 14) Hot water-saving measures Heating/cooling system rebates Appliance rebates (clothes washer—electric & gas heat or electric-heated water only) Insulation rebates (electric & gas only)

WRAP  Free fuel blind program for fixed and limited income residents Family Size60% of State Median Income 1$29,272 2$38,279 3$47,286 4$56,293 5$65,299 6$74,306 7$75,995

WRAP  Free residential energy assessment for qualifying homes  Energy specialists come to home: Blower-door test (air leaks) Professionally seal drafts, caulks & leaks in your home Ductwork tests (for central air) Hot water-saving measures Evaluate insulation, if inadequate will install insulation for free Install CFLs and lamps

THANK YOU Information, literature and CL&P staff are here if you need more information Connecticut Energy Efficiency Fund