Program Guidelines, Application, and Worksheets

PROGRAM GUIDELINES, APPLICATION, AND WORKSHEETS

PROGRAM YEAR: 2015-2016

START DATE: JUNE 1, 2015

STANDARD & CUSTOM INCENTIVE PROGRAMS FOR

LOCAL GOVERNMENT, PUBLIC SCHOOLS, COMMUNITY COLLEGES, PUBLIC UNIVERSITIES, AND STATE/FEDERAL FACILITIES

CLEAN WATER INCENTIVE PROGRAM FOR

PUBLIC WASTE WATER TREATMENT FACILITIES

Guidelines......

Section 1: General Information ......

Section 2: Eligibility Criteria ......

Section 3: Program Information ......

Section 4: Application Process ......

Application......

Program Contact Information ......

Application Checklist ......

Section 1: General Information ......

Section 2: Applicant Certifications ......

Section 3: New Submittal Requirements and Support Documents ......

Section 4: Building/Facility Information and Project Types ......

3-11

3-4

5-6

7-8

9-11

12-17

Standard Incentive Program Worksheets ...... Page numbers will vary

based on applicant. Section

Lighting Incentive Worksheets ...... 4, Building/Facility

Light Survey for Retrofit Lighting Fixtures...... Information is the portal to

all worksheets.

Light Survey for New Light Fixtures ......

Lighting Specifications ......

HVAC Incentive Worksheets ......

HVAC Specifications ......

Equipment Incentive Worksheets ......

Equipment Specifications ......

Kitchen Incentive Worksheets ......

Kitchen Specifications ......

Custom Incentive Program Worksheets ...... Same as above.

Custom Incentive Application......

Additional Documentation for Custom Projects......

Clean Water Incentive Program Application....... Same as above.

Clean Water Specifications......

1.1Purpose. The Illinois Department of Commerce and Economic Opportunity (the “Department of Commerce”) administers the Illinois Energy Now(“IEN”) portfolio of programs to implement cost-effective energy efficiency measures that help meet annual energy savings targets. Implementing such measures will also enhance economic development in the state of Illinois through job creation and business development. The Public Sector Energy Efficiency Program (“Public Sector Program” or "PSEE") will, to the extent funds are available, provide incentives for projects that increase the energy efficiency of local governments, municipal corporations, public school districts, community college districts, public universities, and state/federal facilities located in the service territories of Ameren Illinois (“Ameren”), Commonwealth Edison (“ComEd”), Nicor Gas (“Nicor”), Peoples Gas (“Peoples”), and/or North Shore Gas (“North Shore”).

The Public Sector Program will offer “Standard”, “Custom” and "Clean Water" incentives. The Standard program provides incentives for specific electric and natural gas measures. The measures are listed under the following categories:

Lighting

Heating, Ventilation, Air Conditioning (HVAC)

Equipment: Variable Speed Drives, Water Heaters, Showerheads, Air Compressors, Traffic Signals Kitchen

The Custom program provides incentives for other electric and natural gas measures not listed under the Standard program.

The Clean Water program provides incentives for high efficiency blowers, aeration diffusers and controls.

1.2Authority and Funding.The Department of Commerce is authorized by the Energy Efficiency Section of the Public Utilities Act (220 ILCS 5/8-103) and (220 ILCS 5/8-104) to administer a portion of the Illinois Energy Efficiency Portfolio (“EEP”).The statute provides funding for the EEP and sets certain statutory requirements to meet incremental annual energy savings goals; procure a minimum percentage of the portfolio from local governments, municipal corporations, public school districts, and community college districts; and target low income households proportionate to their share of annual utility revenues. The Public Sector Program is one component of the Department of Commerce's total portfolio of measures to meet its obligations under the Act.Funding levels are determined each year by the Department of Commerce under a plan submitted to the Illinois Commerce Commission.The Department of Commerce reserves the right to limit the total amount of funding for program incentives in any given fiscal year.

1.3Definitions.The terms used in this document have the meanings set forth below.Words and terms not defined here, if defined in the Environmental Protection Act (415 ILCS 5), will have the meanings as defined therein.

“Act” means the Public Utilities Act.

“Applicant” means one of the following public entities, (i) a unit of local government, (ii) a municipal corporation, (iii) public school district, (iv) public community college district, (v) public university, or (vi) state/federal facility:

·Proposing an electric energy efficiency project in Illinois that receives electric delivery service from Ameren or ComEd wires regardless of the retail electric supplier, or a private entity proposing an energy efficiency project in which one of the public entities above leases the facility where the project is installed and is responsible for paying for the electric delivery service from Ameren or ComEd regardless of the retail electric supplier.

·Proposing a natural gas energy efficiency project in Illinois that receives natural gas delivery service from Ameren, Nicor, Peoples, or North Shore distribution regardless of the retail natural gas supplier, or a private entity proposing an energy efficiency project in which one of the public entities above leases the facility where the project is installed and is responsible for paying for the natural gas delivery service from Ameren, Nicor, Peoples, or North Shore regardless of the retail gas supplier.

"Application" means a request for program funds by submitting the required information, on the Department of Commerce's approved forms and attachments as prescribed in these guidelines.

“Clean Water” means the program that provides incentives for public water treatment facilities for the purchase and installation of high efficiency blowers, aeration diffusers and controls.The Clean Water Incentive Worksheet can be accessed by checking the Waste Water Treatment checkbox on Application Page 6.

"Design Lights Consortium" or "DLC" means required LED fixtures certification at

“Custom” means measures that are not Standard projects. Incentive levels are based on kilowatt-hour savings for electric projects and therm savings for natural gas projects. The Custom Incentive Worksheet can be accessed by checking the Custom checkbox on Application Page 6.

"Energy Efficiency" means measures that reduce the total Btus of electricity and natural gas needed to meet the end use or uses.

“Entity” means any applicant submitting an application to the Department of Commerce. “Equipment Costs” are the costs to purchase equipment.

“Final Certification” means final forms and invoices that are submitted after project completion that reflects the actual measures and equipment installed. It is used to determine the incentives paid.

"Grantee" means an entity that has been awarded a grant.

“Incentive” means a grant award or rebate. Incentives less than or equal to $150,000 will be awarded as rebates, while those greater than $150,000 will be processed as grants.

“Incremental Measure Cost” means the increased equipment cost of upgrading to energy efficient equipment.Forretrofit measures, the incremental measure cost is the total cost to purchase and install the qualifying measures.Forreplacement measures or new equipment, the incremental measure cost is the cost to purchase and install the energyefficiency equipment minus the cost to install equipment that meets minimum codes or standards.

“Measure Cost” means the cost of equipment and labor for custom measure.

"Partner Bonus Coupon" will increase the qualifying incentive by 15 percent provided by the Standard, Custom, or Boiler System Efficiency Program. Coupon must be submitted with the pre-approval application.

“Performance Period” means the length of time the grantee is required to operate the project and submit information/data to the Department of Commerce.

“Pre-Approval Application” means an application for incentives that reflects the estimated number of various measures to be installed, given the best information at the time of the application. It is used to reserve funds for projects and to assure that the calculations and methodology used to estimate the energy impacts meet the program requirements.

“Project” means an eligible energy project that the Department of Commerce agrees to fund through the program.

“Project Completion Date” means the date that all necessary procurement is complete, equipment is installed and operational.

“Standard” means measures that have set incentive levels as listed on Incentive Worksheets accessed by checking appropriate checkboxes for Lighting, HVAC, Equipment, and Kitchen on Application Page 6.

"Sweet Deal Bonus" means 10 percent bonus for projects completed and submitted by October 31, 2015. See Section 4.1.8a. for details.

"Total Project Cost" means the cost to purchase and install the qualifying measures including labor costs.

2.1Project Location.Eligibility is limited to projects physically located in the state of Illinois.

2.2Customer of Participating Utility Requirement.

Project locations for those requesting incentives for electric measures must receive electric delivery services from Ameren or ComEd.Applicants are required to submit documentation that the project is located in the Ameren or ComEd electric service territory, in the form of a current utility bill or letter from their utility.
Project locations for those requesting incentives for natural gas measures must receive natural gas delivery service from Ameren, Nicor, Peoples, or North Shore. Applicants will be required to submit documentation that the project is located in the Ameren, Nicor, Peoples or North Shore gas service territories, in the form of a current utility bill or letter from their utility.
Project locations that receive either electric delivery service or gas delivery service (but not both) from a participating utility are only eligible for electric or gas incentives (but not both), determined by which energy type (electric or gas) is provided by the participating utility.

2.3Eligible Projects/Equipment.Eligibility is limited to energy efficiency projects that produce electricity and/or natural gas savings through efficiency improvements in facilities, buildings, equipment, or process.

A.Applicants must be a unit of local government, a municipal corporation, a public school district, a community college district, a public university or a state/federal facility located within the state of Illinois, or a private entity proposing an energy efficiency project in which one of the public entities listed above leases the facility where the project is installed and is responsible for paying for the energy delivery service.

B.Remanufactured equipment must have a warranty that meets or exceeds OEM warranty.Documentation must be submitted with application.

C.The application must be for eligible equipment purchased and installed prior to June 1, 2016, and after May 31, 2015.

D.The application may include prior incurred costs or installation of equipment prior to June 1, 2015, with written permission, which may take the form of a Notice to Proceed or Grant issued during the previous program year.

E.Projects with Standard and/or Custom measures which interact may apply as a combined project under the Custom Program.

2.4Ineligible Projects and Costs.The following projects are not eligible for funding under these guidelines:

A.Projects that repair or replace existing equipment with like equipment.

B.Projects for sole purpose of implementing demand response measures.

C.Projects receiving funding for the same equipment through any other Energy Efficiency Portfolio (EEP) programs offered by the Department of Commerce or Utilities (Ameren, ComEd, Nicor, Peoples, North Shore).

D.Custom projects with simple paybacks greater than the equipment life.

E.Used equipment.

F.Renewable energy measures, except solar light tubes.

G.Linear LED lamp retrofits for fluorescent fixtures.

2.5Maximum Incentive Award.

2.5.1Maximum Incentive Rate for Standard Program. Standard incentives for electric and natural gas efficiency measures are set forth in: Lighting Incentive Worksheets 1-6 , HVAC Incentive Worksheets 1 & 2, Equipment Incentive Worksheets 1 & 2 and Kitchen Incentive Worksheets 1-3. Incentive Worksheets can be accessed by selecting the appropriate checkbox on Application Page 6 of this PDF.

2.5.2. Maximum Incentive Rate for Custom Program.

Custom Incentives
Electric / Natural Gas
Incentive / $0.12/kWh / $2.50/therm
Payback / 1 - 7 years / 1 - 7 years

Custom projects are subject to cost effectiveness evaluation.The Department of Commerce reserves the right to review applications and negotiate incentive levels.

2.5.3The Clean Water Program provides an incentive of $0.36 per annual kWh saved for the purchase and installation of high efficiency blowers, aeration diffusers and controls. The Clean Water Incentive Worksheet and Specifications can be accessed by checking the "Waste Water Treatment" checkbox on Application page 6.

2.5.4Breakthrough Equipment and Devices.Projects that involve breakthrough equipment or devices are allowed to have a payback exceeding 7 years, but not exceeding the equipment life.No more than 3 percent of Illinois Energy Now funds shall be expended on breakthrough equipment and devices. The Department of Commerce reserves the right to negotiate incentive amounts.

2.5.4.a.Induction and LED Fixtures. All LED fixtures shall be certified by Design Lights Consortium (DLC) at Linear LED lamp retrofits for fluorescent fixtures are not eligible.Exterior wall packs are excluded from breakthrough incentive but are available on Lighting Incentive Worksheet 1. LED categories not certified with DLC that are ENERGY STAR listed may qualify for a custom incentive.

i.The Department of Commerce shall provide an incentive of $0.60 per reduced watt for interior Induction and LED fixtures.

ii.The Department of Commerce shall provide an incentive of $0.70 per reduced watt for exterior Induction and LED fixtures.

iii.The Department of Commerce shall provide an incentive of $1.20 per reduced watt for exterior Induction and LED fixtures operated for greater than 8,760 hours per year.

2.5.4.b.Geothermal Heat Pumps. The Department of Commerce shall accept applications for geothermal heat pumps under the Custom Incentive Program.

2.5.5The total Department of Commerce issued incentives cannot exceed 75 percent of the total project cost. If additional incentives are provided to the project from other public sources (such as State Energy Program (SEP) or Illinois Clean Energy Community Foundation (ICECF)), the combined Department of Commerce and other public source incentives cannot exceed 100 percent of the total project cost.

2.5.6Maximum Incentive. The Department of Commerce may provide up to, but not more than, a maximum incentive of $300,000 per building. A single award may exceed $300,000 if the application includes multiple project locations. Funding decisions are made as funding is available and the Department of Commerce is not obligated to provide the maximum grant amount. The Department of Commerce reserves the right to review applications and negotiate grant amounts.

2.5.7The Department of Commerce reserves the right to modify the incentive amounts as needed to fulfill its EEP statutory requirements or based on current market development, technology development, evaluation, measurement and verification (EM&V) results and program implementation experience. The Director reserves the right to waive funding limitations and other program parameters. The Director has the authority to implement pilot projects under these Guidelines.

3.1Payment Schedule. The grant agreement will specify the conditions of payment and the payment schedule.The Department of Commerce reserves the right to determine the appropriate payment structure on a project-specific basis.

3.2Reporting Requirements/Project Monitoring.Grantees will be required to submit progress and expenditure reports in accordance with the requirements of the grant agreement.The Department of Commerce reserves the right to structure reporting requirements on a project-specific basis. The Department of Commerce project manager will monitor the grantee's compliance with the terms of the grant agreement to include verification of both sales transactions and equipment installation.

3.3Freedom of Information Act/Confidential Information.Applications are subject to disclosure, in response to requests received under provisions of the Freedom of Information Act (5 ILCS 140/1 et seq.).Information that could reasonably be considered to be proprietary, privileged or confidential commercial or financial information should be identified as such in the application. The Department of Commerce will maintain the confidentiality of that information only to the extent permitted by law.

3.4Authority/Approvals.The applicant's signature on Application Page 4 is its certification that all authorizations required to perform the project have either been obtained or will be obtained no later than 90 days following the grant beginning date set forth in the Notice of Grant Award issued by the Department of Commerce.

3.5Legal Compliance.The applicant must certify on the application that the project complies with all applicable state, federal, and local environmental and zoning laws, ordinances, and regulations and that all permits, licenses, etc., required to perform the project have either been obtained or will be obtained no later than 90 days following the rebate application date or grant beginning date.

3.6Dissemination of Information/Technology Transfer.Grantees will be contractually required to allow the Department of Commerce access to the project site and the ability to obtain, publish, disseminate or distribute any and all information obtained from the project (except any data or information that has been negotiated as being confidential or proprietary), without restriction and without payment or compensation by the Department of Commerce.

3.7Grant Duration/Performance Period.The grant term/performance period will be determined on a project specific basis.

3.8Ownership/Use of Equipment.The grant agreement will specifically prohibit the sale, lease, transfer, assignment, or encumbrance of any equipment or material purchased with grant funds, without the express written approval of the Department of Commerce for the duration of 5 years or end of product life, whichever is less.In the event of a grantee's failure to comply with this requirement, the grant agreement will provide that the Department of Commerce may, at its discretion, require the grantee to return all grant funds provided by the Department of Commerce, require the grantee to transfer to the state ownership of equipment and material purchased with grant funds and bar the grantee from consideration for future funding. The Department of Commerce reserves the right to require the grantee to give it a purchase money security interest in equipment purchased with grant funds for the duration of the grant term.