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Delaware Energy Efficiency Investment Fund

Program Guidelines and

Operational Procedures

Version 2017.1

Effective November 2017

Table of Contents

1.0 Purpose..................................................................................................................... 4

2.0 Statutory Authority ................................................................................................ 4

3.0 Energy Efficiency Investment Fund Statute and Appropriation ....................... 4

4.0 Delaware Energy Efficiency Investment Fund..................................................... 5

4.1 General Provisions ............................................................................................................... 5

4.1.1 Pre-Approval ..................................................................................................................... 5

4.1.2 Inspections ........................................................................................................................ 6

4.1.3 Invoices and Other Final Documentation .......................................................................... 6

4.1.4 Program Limits.................................................................................................................. 6

4.1.5 State Energy Program Revolving Loan Fund ................................................................... 7

4.2 Eligibility .............................................................................................................................. 7

4.3 Permits .................................................................................................................................. 7

4.4 Installing Contractor Guidelines........................................................................................... 8

4.4.1 Education and Licensure ................................................................................................... 8

4.4.2 Insurance Requirements .................................................................................................... 8

4.4.3 Statement of Reliability and Good Standing ..................................................................... 8

4.4.4 Limitation of Funds ........................................................................................................... 8

4.4.5 Participating Contractor List ............................................................................................. 8

4.4.5.1 Eligibility .................................................................................................................. 9

4.4.5.2 Application Requirements ...................................................................................... 10

4.4.5.3 Application Process ................................................................................................ 10

4.5 Warranty ............................................................................................................................. 11

4.6 Code Compliance ............................................................................................................... 11

5.0 Delaware Energy Efficiency Investment Fund Pathways ................................. 12

5.1 Prescriptive Pathway Grants .............................................................................................. 12

5.1.1 Prescriptive Grant Limits ................................................................................................ 12

5.1.2 Prescriptive Accepted Products and Equipment ............................................................. 13

5.1.3 Prescriptive Application Process ..................................................................................... 13

5.1.4 Prescriptive Application Timeline .................................................................................. 14

5.1.5 Prescriptive Application Requirements ........................................................................... 16

5.2 Custom Pathway Grants ..................................................................................................... 17

5.2.1 Custom Grant Limits ....................................................................................................... 17

5.2.2 Accepted Custom Products and Equipment .................................................................... 17

5.2.3 Custom Application Process ........................................................................................... 18

5.2.4 Custom Application Review Process .............................................................................. 19

5.2.5 Custom Application Timeline ......................................................................................... 21

5.2.6 Custom Application Requirements ................................................................................. 21

5.3 Energy Assessment Grants ................................................................................................. 21

5.3.1 Energy Assessment Grant Limits .................................................................................... 21

5.3.2 Accepted Audits .............................................................................................................. 22

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5.3.2.1 Single Purpose or Targeted Energy Audit .............................................................. 22

5.3.2.2 Comprehensive Audit ............................................................................................. 22

5.3.3 Energy Assessment Application Process ........................................................................ 22

5.3.4 Energy Assessment Application Timeline ...................................................................... 23

5.4 Combined Heat and Power Grant Pathway ........................................................................ 23

5.4.1 CHP Grant Limits ........................................................................................................... 24

5.4.2 CHP Eligible Products and Equipment ........................................................................... 24

5.4.3 CHP Application Process ................................................................................................ 25

5.4.4 CHP Application Review Process ................................................................................... 26

5.4.5 CHP Application Timeline .............................................................................................. 27

5.4.6 CHP Application Requirements ...................................................................................... 27

6.0 Proprietary Application Information ................................................................. 29

7.0 Retirement and Disposal ...................................................................................... 29

8.0 Dispute Resolution ................................................................................................ 29

9.0 Tax Liability .......................................................................................................... 29

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1.0 Purpose

The purpose of these guidelines is to define procedures relating to the Energy Efficiency

Investment Fund (EEIF). The goal in establishing these guidelines is to provide a

streamlined procedure for administering and distributing program funds.

These guidelines provide rules of practice and procedures for grant applications and

disbursement of grants for energy efficiency projects in Delaware.

2.0 Statutory Authority

These guidelines are disseminated under authority of 29 Delaware Code, Section 8030.

3.0 Energy Efficiency Investment Fund Statute and Appropriation

Senate Bill 129 which amended Title 29, §8030 and Title 30 §5502 of the Delaware Code

establishes the Energy Efficiency Investment Fund. The State shall transfer in each fiscal

year the first $5,000,000 in tax receipts received under Title 30 Chapter 55 that would

otherwise be deposited to the General Fund to the Energy Efficiency Investment Fund

(EEIF) maintained by the Department of Natural Resources and Environmental Control

(DNREC) pursuant to Chapter 80 of Title 29.

The EEIF program promotes the use of energy efficient technologies by Delaware non-

residential (commercial and industrial) customers that are users of gas or electricity whose

purchase of those commodities from a distributor is subject to the public utility tax on gas

or electricity. For more information on who pays the public utility tax, please see the

Public Utilities chapter of the Delaware State Code (30 Del.C. Chapter 55).

According to Title 29 §8030, DNREC shall give preference to those applications

proposing projects that are anticipated to produce the greatest reduction in energy

consumption per Fund dollar invested, improve environmental performance, spur capital

construction and facility modernization, encourage job retention and creation, and are

likely to be substantially complete no later than one year following the issuance of

financing from the Fund.

DNREC is the designated recipient and administrator of several funding streams, each

having specific disbursement requirements and customer eligibility. EEIF is funded in part

by the public utility tax (PUT), Regional Greenhouse Gas Initiative (RGGI) and lastly,

funding as a result of the recent merger between Exelon Corp and Pepco holdings.

Funds from the public utility tax are required for the benefit of the energy consumers that

pay for the funds. Two of the funding sources are RGGI, which is a mandatory market-

based program among 11 states including Delaware to reduce greenhouse gas emissions.

DNREC receives RGGI funding from the state selling emission allowances through

auctions to be used for investment in energy efficiency. DNREC has elected to utilize a

http://delcode.delaware.gov/title30/c055/index.shtml

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portion of the RGGI proceeds to fund EEIF in the absence of PUT funding. However, if

PUT funding is not restored, the programs offered will be reconsidered. The SEU has also

elected to provide DNREC with a portion of their RGGI funds to administer the EEIF

program.

Part of the agreement involving the merger between Exelon Corp and Pepco holdings

resulted in funds to be distributed to Delaware from the new company. The

Delaware Public Service Commission approved the allocation of $16,000,000 to be set

aside as an endowment fund for use as directed by DNREC for energy-efficiency

programs. $8,000,000 is to be allocated to the EEIF program under these guidelines.

The second $8,000,000 is to be allocated toward an industrial/large commercial grant or

loan fund to Delmarva Power’s large commercial and industrial customers. This program

will be called Delaware Energy Efficiency Industrial (E2I), and will be a grant program.

The E2I Program will be available to Delmarva large energy user facilities whose annual

energy consumption is greater than 10,000 MWh or 95,000 MMBtu annually. Grants will

be for custom projects and funding must be utilized within 5 years. For more information

on that program, please visit www.de.gov/e2i

4.0 Delaware Energy Efficiency Investment Fund

4.1 General Provisions

All grants are on a first-come first-served basis. With the exception of energy

assessments, in no event shall the Fund provide grant funding for more than 30

percent of the total costs of any proposed project nor support projects already

receiving support from the Green Energy Fund under this chapter or the Strategic

Fund under subchapter I-B of Chapter 50, Title 29 the Delaware Code. DNREC

reserves the right to suspend, terminate or modify the Fund at any time. DNREC

may change program requirements, eligible measures or grant amounts at any time.

DNREC is not obligated to approve any submitted application that may result in

exceeding the program budget. In the event of a program change, submitted

applications will be processed according to program terms at the time of application

pre-approval.

4.1.1 Pre-Approval

Upon pre-approval, equipment must be new, purchased, and installed before

the grant payment can be issued. Both payment and commitment of grant are

subject to availability of program funds. DNREC will provide designated

grant payments for qualifying equipment. All projects require pre-approval

prior to any equipment purchase or any services completed. Applications for

grants are subject to approval by DNREC and DNREC reserves sole

discretion to accept or reject any application under the Fund. DNREC makes

no commitment to provide grant payment prior to final application approval.

Once your grant is pre-approved, the applicant has 12 months to complete the

project or the application will be considered expired.

http://www.de.gov/e2i

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4.1.2 Inspections

All applications are subject to pre-installation and/or post-installation

inspections at the discretion of DNREC. All customers agree to allow access

to proposed and installed equipment for the purposes of inspection and

verification. If DNREC determines that the customer eligibility, proposed

equipment or installed equipment does not meet the program’s criteria,

DNREC may withhold payment of the grant amount and/or require changes

before issuing payment.

4.1.3 Invoices and Other Final Documentation

After the applicant received pre-approval and completed the installation, the

customer or contractor performing services on behalf of the customer must

provide copies of all itemized invoices and other documentation that verify

the costs of purchasing and installing all qualifying equipment including

material and installation costs. Invoices must be itemized for all eligible

equipment. At the time of project completion quotes cannot be accepted,

itemized invoices are required and the applicant must highlight any changes

in the project scope on those invoices from the proposed quote which may

result in an adjustment of the approved grant amount. Proof of payment must

be submitted prior to grant payment being issued.

4.1.4 Program Limits

The Fund will not pay more than 30 percent of the total project cost for any

proposed project as detailed on itemized invoices. Individual grants will not

exceed $500,000 without written approval from the Division Director.

The grant for a custom project will be paid at a rate of $0.12 per kilowatt-

hour saved and $5/MMBtu, up to 30% of the installed cost, whichever is less.

Energy Assessment Grants will not fund any energy audit or feasibility study

greater than 50 percent of the audit/study cost and will not exceed $10,000

per application for a single purpose/targeted energy audit or $20,000 per

application for a comprehensive energy audit.

No company or affiliated group of companies under common

ownership/control can receive more than $1,000,000 in grants awarded

within a three-year period. By way of example, a parent and subsidiary (or

sister entities with a common owner) would not be eligible to receive more

than $1,000,000 in total combined awards within three consecutive program

years. DNREC’s program years are deemed July 1st through June 30

th.

Within this $1,000,000 limit there is also a cap on total lighting awards. Total

lighting grant awards shall not exceed $400,000 within a three-year period.

By way of example, a parent and subsidiary (or sister entities with a common

owner) would not be eligible to receive more than $400,000 in total

combined lighting awards and would not be eligible to receive more than

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$600,000 in total combined awards for all other measures within three

consecutive program years.

4.1.5 State Energy Program Revolving Loan Fund

The State Energy Program Revolving Loan Fund (SEPRLF) can be used to

supplement an EEIF grant or as a stand-alone loan. The program offers low-

interest loans for installation of energy efficiency measures that, in turn,

lower their bills while reducing the environmental impacts of energy

production, delivery and use. Applicants need an energy audit that includes a

detailed project description as well as documented energy savings.

Applicants can be from the commercial, industrial, nonprofit, schools, local

government, agricultural and institutional sectors. Underwriting is done in

house by DNREC thereby allowing for greater flexibility in loan terms and

conditions. Loan approval will not compromise an applicant’s EEIF grant

amount, meaning that loans can be used in combination with a grant to help

pay the balance of the project cost.

4.2 Eligibility

The Delaware EEIF Program is available to non-residential consumers that pay the

Delaware Public Utility Tax on electric and/or natural gas utility bills.

Additionally, for a limited time, all non-residential, commercial, industrial,

governmental and non-profit entities in the State of Delaware are eligible for grants

due to the availability of RGGI funding. These funds are subject to change due to

auction results which may result in changes to program eligibility.

Also, for a limited time, through a partnership between the Delaware SEU and

DNREC in which the SEU has agreed to give a portion of their RGGI proceeds to be

used solely on non-profit and local government entities in the State of Delaware for

grants, energy assessment grants and loans.

Finally, for a limited time, the Delaware Public Service Commission approved the

allocation of one-time funding for use as directed by DNREC for energy-efficiency

programs as part of the merger between Exelon Corp and Pepco holdings.

All funding sources are subject to change based on availability. Every funding

source will follow EEIF program requirements and the grant payment structure. The

various sources of additional funding not pertaining to the Public Utility Tax are all

limited and should be considered one-time monies.

New construction is not eligible for EEIF Funding at this time. Therefore, all

applications must be a retrofit of an existing building.

4.3 Permits

All EEIF projects must obtain all relevant permits from DNREC and all other

necessary state, local, regional, and federal permits to be considered for an

application.

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4.4 Installing Contractor Guidelines

4.4.1 Education and Licensure

Installing contractors shall maintain appropriate education, licenses, industry

certificates and accreditations to ensure the program preserves the end-users’

expectation of professional work. The installing contractor must have an

active Delaware business license, Delaware trade specific license, certificate

of general liability insurance, and training certificates.

Where industry certification programs have been promulgated, grant

recipients are encouraged to use industry certified contractors.

4.4.2 Insurance Requirements

The installing contractor and anyone acting under its direction or control or

on its behalf shall at its own expense procure and maintain in full force at all

times Commercial General Liability Insurance with a bodily injury and

property damage combined single limit of liability of at least one million

dollars ($1,000,000) for any occurrence.

4.4.3 Statement of Reliability and Good Standing

The contractor must be reliable and in good standing with a “Satisfactory

Record” (or no negative reports) with the Better Business Bureau. The

contractor shall provide a copy of their Better Business Bureau report to

DNREC upon request. Reports may be obtained at the following address.

BBB of Delaware

60 Reads Way

New Castle, DE 19720

Phone: (302) 221-5255

Fax: (302) 221-5265

Web Site: www.delaware.bbb.org

Email: [email protected]

4.4.4 Limitation of Funds

The various sources of additional funding not pertaining to the Public Utility

Tax are all limited and should be considered one-time monies. The installing

contractor shall follow program guidelines to ensure reservation of funds

prior to any equipment purchase or installing a qualifying system. DNREC

will provide notice if program funds are close to being exhausted for the

fiscal year.

4.4.5 Participating Contractor List

Contractors installing qualifying energy efficiency measures under the EEIF

Program may apply to be included on the Participating Contractors List that

http://www.delaware.bbb.org/

mailto:[email protected]

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will be published quarterly on the EEIF Website. This list will benefit

consumers looking for contractors and aid contractors in the amount of

information they need to provide DNREC per application by keeping their

records on file. Those contractors identified on the list are in no way

endorsed by DNREC and are not considered trade-allies under any

circumstances. The EEIF participating contractor list is voluntary and does

not preclude eligibility for installers who do not want to be identified to

participate in the EEIF program. The list will be broken out into areas of

specialty/expertise.

New Contractors or Companies seeking to apply will not be listed on the

EEIF website until at least three installations have been completed and three

customer references for each energy efficiency measure have been submitted

to the EEIF Program Team. These installations may not include any installs

at the company’s business, for company employees, or for employee’s family

members.

4.4.5.1 Eligibility

Contractors who maintain an active Delaware business license,

Delaware trade specific license, certificate of general liability

insurance and training certificates are eligible to apply to be listed on

the Participating Contractors List.

4.4.5.1.1 Education and Licensure

Participating Contractors shall maintain appropriate

certifications and licenses, including Delaware business

license and Delaware trade specific license. Contractors

participating on the list must ensure that renewed licenses are

submitted to the EEIF Program Manager prior to their

expiration date. If contractors fail to submit renewed licenses

prior to their expiration date, the Participating Contractor will

be removed from the Participating Contractors List and will

be eligible to reapply.

4.4.5.1.2 Insurance Requirements

The Participating Contractor and anyone acting under its

direction or control or on its behalf shall at its own expense

procure and maintain Commercial General Liability Insurance

with a bodily injury and property damage combined single

limit of liability of at least one million dollars ($1,000,000) for

any occurrence. Contractors participating on the list must

ensure that renewed insurance certificates are submitted to the

EEIF Program Manager prior to their expiration date. If

contractors fail to submit renewed insurance certificates prior

to their expiration date, the Participating Contractor will be

removed from the Participating Contractors List and will be

eligible to reapply.

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4.4.5.1.3 Statement of Reliability and Good Standing

Contractor must be reliable and in good standing with a

“Satisfactory Record” (or no negative reports) with the Better

Business Bureau. The Contractor shall provide a copy of their

Better Business Bureau report to the Department upon

request. Reports may be obtained at the following address.

BBB of Delaware

60 Reads Way

New Castle, DE 19720

Phone: (302) 221-5255

Fax: (302) 221-5265

Web Site: www.delaware.bbb.org

Email: [email protected]

4.4.5.2 Application Requirements

Contractors seeking to participate in the EEIF Participating

Contractors list must complete an application with the following

information:

Name of company and key contact information, AND

Brief history and organizational structure of company,

AND

Education, experience, and licensure, AND

General liability insurance, AND

Statement of reliability and good standing, AND

Date and location of the three most recently installed

energy efficiency measures, AND

Three customer references for each energy efficiency

measure

In addition to completing the Participating Contractors List

Application, Contractors shall submit copies of the following licenses

and documentation:

Delaware Business License, AND

Trade Specific License, AND

Commercial General Liability Insurance Certificate, AND

Licensed Professional’s Training Certificates or other

proof of training

4.4.5.3 Application Process

Contractors should determine eligibility by ensuring that licenses,

insurance, and other required documentation meets the application

requirements. Contractors should then submit the completed and

signed Participating Contractor Application with copies of the

required licenses, insurance, and documents to DNREC.

http://www.delaware.bbb.org/

mailto:[email protected]

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After receipt of the completed application and any required

supplementary documentation, DNREC will evaluate the

Participating Contractor application, required licenses, insurance, and

other required documentation. The contractors are fully responsible

for ensuring that all forms and documentation have been supplied and

meet all program requirements. If the requirements have been

successfully met, an approval letter will be issued by DNREC to the

Contractor. Failure to supply these documents will result in a delay of

approval or rejection of application.

The Participating Contractor list will be updated on the EEIF Website

on the first business day of each quarter of the Delaware Fiscal Year.

Contractors are fully responsible for ensuring that renewals and

updated documents are provided to DNREC to remain on the list. If

existing Participating Contractors fail to submit renewed licenses and

insurance prior to their expiration date, the Participating Contractor

will be removed from the Participating Contractors List and will be

eligible to reapply in the next update cycle.

The EEIF participating contractor list is voluntary and does not

preclude eligibility for installers who do not want to be identified to

participate in the EEIF program.

4.5 Warranty

All qualifying systems receiving an EEIF grant must have a full 3-year warranty

against component failure, malfunction and premature output degradation. The

warranty must cover all components for which the applicant is receiving grant

money for, and must cover the full cost of repair and replacement of all components

of the system. For professionally installed systems, the warranty must cover the

labor to remove and replace defective components and systems.

DNREC neither expressly nor implicitly warrants the performance of installed

equipment. Participants should contact their contractor for details regarding the

equipment warranties.

4.6 Code Compliance

All qualifying systems must be installed in accordance with the standards and

specifications of the manufacturers of the components in the system, in compliance

with all federal, state, and local safety, building and environmental codes and

ordinances and these guidelines. Where discrepancies, if any, exist with these

guidelines and local codes, local codes shall govern.

With regard to Delaware’s current building energy code, qualifying systems must

exceed minimum code requirements in order to be considered for energy efficiency

grant funds. For more on Delaware’s energy codes, please see de.gov/energycodes.

All equipment must be tested to Underwriters Laboratory (“UL”) standards, be UL

http://www.de.gov/energycodes

12

listed and installed per manufacturer’s instructions.

5.0 Delaware Energy Efficiency Investment Fund Pathways

There are several funding avenues and grant pathways available to Delaware businesses

with existing buildings tailored to differing needs and resources. There is a prescriptive

energy efficiency grant option by which a business may engage a contractor or otherwise

install specified efficiency equipment and be assured a prescribed grant according to a set

grant amount. There is also the customized option geared for businesses with more unique

or complex energy efficiency projects. There is an energy assessment option for

businesses needing more assistance in planning for efficiency. A fourth pathway has been

developed for combined heat and power (CHP) systems. The four options are described in

detail below.

All four of these pathways can be paired with the DNREC State Energy Program

Revolving Loan Fund (SEPRLF) detailed in section 4.1.6. Loan approval will not

compromise an applicant’s EEIF grant amount, meaning that loans can be used in

combination with a grant to help pay the balance of the project cost. Applications for

SEPRLF are available on the EEIF website (de.gov/eeif).

5.1 Prescriptive Pathway Grants

Prescribed measures contain technologies where energy savings can be predicted

with reasonable accuracy across all applications. The technologies currently eligible

for the program include: lighting, high efficiency commercial gas heating, hot water

heating, and vending misers.

The program may modify or expand the list of eligible measures under the

prescriptive grant pathway at any time. DNREC will notify applicants of any

changes on the website and update any published materials.

5.1.1 Prescriptive Grant Limits

The Fund will not pay more than 30 percent of the total project cost for

eligible prescriptive measures as detailed on itemized invoices and grants

will not exceed $500,000 without written approval from the Division

Director.


ownership/control can receive more than $1,000,000 in grants awarded

within a three-year period based on program years. By way of example, a

parent and subsidiary (or sister entities with a common owner) would not be

eligible to receive more than $1,000,000 in total combined awards within

three consecutive program years. DNREC’s program years are deemed July

1st through June 30

th.

Within this $1,000,000 limit there is also a cap on total lighting grant awards

http://www.de.gov/eeif

13

which shall not exceed $400,000 within a three-year period. By way of

example, a parent and subsidiary (or sister entities with a common owner)

would not be eligible to receive more than $400,000 in total combined

lighting grants and would not be eligible to receive more than $600,000 in

total combined grants for all other measures within three consecutive

program years.

5.1.2 Prescriptive Accepted Products and Equipment

The following list details the products and equipment eligible for a grant

under the Energy Efficiency Investment Fund Prescriptive pathway.

Lighting

All products must meet the technical requirements listed on the Prescriptive

Grant Application Form for lighting equipment to be eligible for a grant.

All products must be UL listed and be installed according to local building

codes.

All products must be installed in such a way that the lighting power

allowance in either the Building Area or the Space-by-Space method of

ASHRAE 90.1-2010 and the current Delaware building codes is not

exceeded.

Heating Equipment


Grant Application Form for Natural Gas Heating and Water Heating

Equipment to be eligible for a grant.

Water Heating Equipment


Grant Application Form for Natural Gas Heating and Water Heating

Equipment to be eligible for a grant.

Vending Machine Miser


Grant Application Form for Vending Miser to be eligible for a grant.

The following are not eligible for a Prescriptive grant:

Routine maintenance procedures

Building energy code requirements (see ASHRAE 90.1-2010 and

2012 IECC) de.gov/energycodes

Other restrictions as deemed appropriate by DNREC

5.1.3 Prescriptive Application Process

The figure below shows the application process from the submission of the

application through grant payment. The workflow steps are further detailed

below.

http://www.de.gov/energycodes

14

The applicant or contractor acting on behalf of the applicant should confirm

that the proposed energy efficiency measure (EEM) qualifies for a grant

based on the program requirements. Then, submit a completed and signed

EEIF Prescriptive Grant Application form with copies of the manufacturer's

technical specification sheets (cut sheets) for each type of EEM to be

purchased. After an application is received, it is classified as ‘pending’ status,

and will expire after 3 months if any missing documentation is not provided.

After receipt of the completed application and all required supplementary

documentation, DNREC will evaluate the project for consideration of project

pre- approval. The contractor and customer are fully responsible for ensuring

that all forms and documentation have been supplied and the system meets

all program requirements. If the requirements have been successfully met, a

pre-approval letter will be issued by DNREC to the applicant.

After completing the installation of the project, the applicant or contractor

acting on behalf of the applicant must submit the final documents pertaining

to the project. DNREC will evaluate the project and the required

accompanying documents for consideration of grant final approval. DNREC

may conduct an inspection of the systems prior to final grant approval.

5.1.4 Prescriptive Application Timeline

Applications submitted to DNREC will follow the timelines specified in

these guidelines. DNREC will process the grant within 60 days of receipt of

the final application package and all supporting documentation, or 30 days

after a scheduled inspection if required. DNREC will ordinarily process the

payment to the purchaser, however, if the purchaser so requests in writing

and documentation reflects the grant value was reduced directly from the

purchase price, DNREC will process the payment to the retailer or installing

contractor. The following flowchart shows an overview of the full process

from application received through grant payment. Details of each workflow

step are described below:

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Application Received:

Contractor or applicant submits the project application to DNREC. The

application and date received is logged into the tracking spreadsheet and a

review is scheduled.

Application review:

DNREC reviews the application and energy calculations for completeness. If

there is any missing information, or if anything is needed in order to

accurately estimate the energy savings from the project, DNREC will follow

up with the applicant. DNREC reserves the right to deny applications that are

unreasonably incomplete or that fail to become complete after due diligence

to collect the required information. The program manager may also decide

the application needs additional study or metering data to be confident in the

estimates, and may notify the applicant to request additional information or a

site visit. Depending on the additional information required, there may be

additional program funds available for these activities under the Energy

Assessment grants opportunity.

Pre-Installation Site Visit:

If necessary, DNREC will conduct a pre-installation site visit, in order to

ensure that the installation has not yet begun and that baseline conditions

were accurately described in the application. During the site visit, DNREC

may also collect information to enable it to accurately calculate savings.

DNREC will complete pre-inspections according to the following criteria

based on grant requests in order to maintain a high level of quality assurance:

Visit 10% of projects with grant requests < $10,000

Visit 25% of projects with grant requests ≥ $10,000 < $50,000


Visit All of projects with grant requests ≥ $100,000

Project Technical Review and Grant Calculation:

If the project does not pass the initial review, the program manager will

notify the applicant. The applicant may choose to modify the project or

rescind the application. DNREC reserves the right to deny applications that

are unreasonably incomplete or that fail to become complete after due

diligence to collect the required information.

The grant award calculation will be based on the technical review results.

Pre-Approval Grant Letter:

If the project passes the technical review, the applicant will be sent a pre-

approval letter that reserves the grant amount for not more than 12 months.

The letter will also include a disclaimer that the grant award cannot be

guaranteed if there are changes in scope or cost.

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The applicant is responsible for submitting the final documents once the

project is installed and completed.

Post-Installation Site Visit

A post-installation site visit may be necessary due to minor changes in scope

as a project proceeds from design to completion and to ensure that the final

savings estimates reflect the project as installed, rather than the project as

designed. These site visits will be performed on a sample of project sites

according to the following rates based on pre-approved grants to ensure

quality assurance:





Final Review

Once the final costs and project specifications are submitted to DNREC, a

final review is performed using the measure screening tool. This will ensure

that the program records reflect the actual site conditions. If the scope of the

project changed enough to significantly lower savings, the grant amount will

be changed to reflect the installed savings.

Grant Payment

Once the project passes the final review, the grant is ready to be disbursed to

the applicant. DNREC will send a letter notifying the applicant of payment

approval and will record the payment information in the Payment Summary

sheet.

5.1.5 Prescriptive Application Requirements

Applications must be completely and accurately submitted before grants can

be paid. Required documentation includes:

Specification (cut) sheets for all equipment, AND

Technical data and testing laboratory information, AND

Quotes and estimates for all equipment and the scope of work,

AND

Twelve consecutive electric and/or natural gas utility bills, AND

Installer’s Commercial General Liability Insurance certificate,

AND

Installer’s appropriate business license(s) for the State of

Delaware and trade specific license, AND

Delaware State Substitute W-9 form submitted electronically to

https://w9.accounting.delaware.gov/, AND

If a lighting project, a lighting schedule is required. DNREC

reserves the right to also request a ceiling plan, AND

After project completion, itemized invoices for all installed

equipment.

https://w9.accounting.delaware.gov/

17

Additional information may be requested upon review of initial proposal as

deemed appropriate by DNREC.

5.2 Custom Pathway Grants

The custom pathway grant option is designed to encourage non-standard energy-

efficiency measures, including measures not listed in the prescriptive pathway above

and prescribed measures bundled into a comprehensive full-facility upgrade that

maximizes energy savings and cost effectiveness. The custom grant pathway allows

for more comprehensive, unique and creative solutions to projects that are more

complex than the prescriptive program offers.

The custom grants are based on calculated energy and demand savings of retrofit

projects, as well as cost effectiveness, and are limited by total project cost. The projects

qualifying under this program are generally more complex and aggressive measures

that permanently raise the efficiency levels beyond that of standard equipment.

5.2.1 Custom Grant Limits

Subject to the availability of funds and the per business limit, a custom grant

pathway must propose a project offering an annual energy savings. The grant

will be paid at a rate of $0.12 per kilowatt-hour saved and $5.00/MMBtu, up

to 30 percent of the total project costs, whichever is less. Program funds are

limited and projects must be pre-approved to reserve funds prior to the

purchase of any equipment.

Typically, the savings generated by these custom measures are site and end

use specific and require a detailed analysis to qualify for a grant.

Recognizing this, DNREC reserves the right to require a detailed system

design and a predicted performance calculation verified by a Professional

Engineer (P.E.) on 100 percent of proposed projects.

All custom applications require documentation of the energy savings

information. Acceptable forms of documentation include: energy modeling

by a consultant or other third party, specification sheets for ALL existing and

proposed systems, and/or signature by a licensed professional engineer

(P.E.). Failure to submit acceptable documentation will result in a

determination of ineligibility. For example, ASHRAE 90.1-2010 Appendix G

simulation may be used to demonstrate beyond-code energy performance,

and ASHRAE's energy cost budget method may be used to demonstrate

energy cost avoidances.

5.2.2 Accepted Custom Products and Equipment

All projects that are considered energy efficiency measures may be eligible

to receive a custom pathway grant, as long as they exceed minimum building

energy code requirements. Examples of possible improvements over baseline

include:

Building envelope

Steam / Boiler improvements

18

Process Heat recovery

Compressed Air improvements

Chillers

Variable Speed Drives

Heating Ventilation and Air Conditioning improvements

Plug Load Controls

Service Water Heating improvements

Lighting Power Density improvements beyond code (using a mix

of daylighting, delamping, highly reflective interior surfaces, and

fixture efficiency)

Whole Building Retrofits (using three or more energy efficiency

measures to deliver a minimum of 30% energy use reduction from

pre-installation baseline)

The following are not eligible for the custom pathway grant:

Routine maintenance procedures

Renewable energy generation (e.g. wind, geothermal, solar, etc.)

Projects with less than a 6-month simple payback

Industrial technologies not approved by nationally recognized

laboratories

Power conditioning/power factor equipment

Equipment studies

Projects with less than 1.0 benefit cost ratio (using the Total

Resource Cost (TRC) method)

Projects that bring the building up to minimum code requirements

Other restrictions as deemed appropriate by DNREC

5.2.3 Custom Application Process

Applications for the custom pathway must receive pre-approval from

DNREC prior to beginning the project with the purchase of any materials. A

statement of reservation of funds and authorization to proceed will be issued

by DNREC upon acceptance as a custom project. DNREC reserves the right

to pre-inspect all facilities requesting a custom path grant. Applications with

missing information or documentation will be classified as “pending” status,

these applications will expire after 3 months if the missing information is not

provided.

After receipt of the completed application and any required supplementary

documentation, DNREC will evaluate the project for consideration of grant

pre- approval. The contractor and customer are fully responsible for ensuring

that all forms and documentation have been supplied and the system meets

all program requirements. If the requirements have been successfully met, a

pre-approval letter will be issued by DNREC to the applicant.

Funds will be reserved for 12 months on a first-come, first-served basis. The

final grant claim form and supporting documents shall be submitted within

19

the 12 months of the reservation date or funds will be forfeited. If the claim

form is not received at the end of the 12-month reservation period, and the

applicant wishes for an extension, a milestone accomplishments report and

form letter should be submitted to DNREC two months ahead of the

reservation expiration date or the reservation will be forfeited. DNREC will

determine if a reservation extension should be granted. Granted extensions

are for 1 or 3-months only.

After completing the project, the applicant must submit the final documents

pertaining to the project. DNREC will evaluate the project and the required

accompanying documents for consideration of grant approval. DNREC may

conduct an inspection of the systems prior to final grant approval.

5.2.4 Custom Application Review Process

The following shows a flowchart of each workflow step with definitions

detailing each step below:





Application review:

DNREC reviews the application and energy calculations for completeness. If

there is any missing information, or if anything is needed in order to

accurately estimate the energy savings from the project, DNREC will follow

up with the applicant. DNREC reserves the right to deny applications that are

unreasonably incomplete or that fail to become complete after due diligence

to collect the required information. The program manager may also decide

the application needs additional study or metering data to be confident in the

estimates, and may notify the applicant to request additional information or a

site visit. Depending on the additional information required, there may be

additional program funds available for these activities under the Energy

Assessment grants opportunity.


If necessary, DNREC will conduct a pre-installation site visit, in order to

ensure that the installation has not yet begun and that baseline conditions

were accurately described in the application. During the site visit, DNREC

may also collect information to enable it to accurately calculate savings.

20

DNREC will complete pre-inspections according to the following criteria

based on grant requests in order to maintain a high level of quality assurance:





Project Technical Review and Grant Calculation:

If the project does not pass the initial review, the program manager will

notify the applicant. The applicant may choose to modify the project or

rescind the application. DNREC reserves the right to deny applications that

are unreasonably incomplete or that fail to become complete after due

diligence to collect the required information.

The grant award calculation will be based on the technical review results.


If the project passes the pre-screening, the applicant will be sent a pre-

approval letter that reserves the grant amount for not more than 12 months.

The letter will also include a disclaimer that the grant award cannot be

guaranteed if there are changes in scope or cost.




A post-installation site visit may be necessary due to minor changes in scope

as a project proceeds from design to completion and to ensure that the final

savings estimates reflect the project as installed, rather than the project as

designed. These site visits will be performed on a sample of project sites

according to the following rates based on pre-approved grants to ensure

quality assurance:





Final Review

Once the final costs and project specifications are submitted to DNREC, a

final review is performed using the measure screening tool. This will ensure

that the program records reflect the actual site conditions. If the scope of the

project changed enough to significantly lower savings, the grant amount will

be changed to reflect the installed savings.

Grant Payment

Once the project passes the final review, the grant is ready to be disbursed to

the applicant. DNREC will send a letter notifying the applicant of payment

21


sheet.

5.2.5 Custom Application Timeline


these guidelines which are detailed in section 5.1.4. DNREC will process the

grant within 60 days of receipt of the final application package and all

supporting documentation, or 30 days after a scheduled inspection if

required. DNREC will ordinarily process the payment to the purchaser,

however, if the purchaser so requests in writing and documentation reflects

the grant value was reduced directly from the purchase price, DNREC will

process the payment to the retailer or installing contractor.

5.2.6 Custom Application Requirements

Applications must be completely and accurately submitted before grants can

be paid. Required documentation includes:



Itemized quotes and estimates for all equipment and the scope of

work, AND

Twelve consecutive electric and/or natural gas utility bills, AND

Installer’s Commercial General Liability Insurance certificate,

AND

Installer’s appropriate business license(s) for the State of

Delaware and Delaware trade specific license, AND

Documentation of the energy savings calculations and cost

estimates, AND

Project schedule including detailed milestones, AND



If a lighting project, a lighting schedule and a ceiling plan, AND

After project completion, itemized invoices for all installed

equipment.



5.3 Energy Assessment Grants

For businesses in need of technical assistance to evaluate their facility for cost

effective energy efficient upgrades, grants are available to help with the cost of the

audit, feasibility study and project design. Energy Assessment funding is limited.

Funding must be reserved prior to beginning the audit or study to ensure funding

availability.

5.3.1 Energy Assessment Grant Limits

The Energy Assessment grants will pay up to 50 percent of the cost of the


22

proposed audit per application, up to $10,000 for a single purpose/targeted

energy audit or up to $20,000 per application for a comprehensive audit.

5.3.2 Accepted Audits

5.3.2.1 Single Purpose or Targeted Energy Audit

A single purpose or a targeted energy audit will provide a detailed

analysis on one or more types of projects. Audit types included but

are not limited to a focused analysis on lighting, energy management

systems, variable speed drives, boiler/chiller replacements, thermal

energy storage systems, energy generation, or a combination of these

projects.

5.3.2.2 Comprehensive Audit

A comprehensive energy audit will provide a detailed analysis of a

facility and potential project. The audit will include the interactive

effects of the projects and account for the energy use of all major

equipment while providing detailed energy cost saving calculations

and installed project cost. Comprehensive audits typically use

computer models such as DOE-2, Trane/Trace or equivalent packages

to simulate building and equipment operations based on weather,

equipment set points and hours of operation.

Recognizing that a comprehensive audit evaluates all major energy

using systems, the audit will include an implementation plan for the

facility upgrades. Systems eligible for a comprehensive audit include

but are not limited:

Building envelope

Lighting

Domestic hot water

HVAC and controls

Combined heat and power

The audit must comply with ASHRAE Level II audit requirements.

5.3.3 Energy Assessment Application Process

Applicants for the Energy Assessment grant option shall submit Part 1 of the

application and the winning audit proposal to DNREC and receive pre-

approval prior to beginning the project. A statement of reservation of funds

and authorization to proceed will be issued by DNREC upon acceptance of

Part 1 of the application.

Upon receipt of the completed study and all final documentation pertaining

to the project, DNREC will evaluate the project for grant payment. The

contractor and customer are fully responsible for ensuring that all forms and

documentation have been supplied and the proposal meets all program

requirements. Applications submitting only a scope of work for the proposed

23

study will be considered incomplete and not eligible for grant award.

In addition to the requirements in this section, applications for Energy

Assessment grants must include the following:

Completed Application Form Part 1 and appropriate audit proposal,

AND

Copy of the customer’s last 12 months of electric and natural gas

bills, AND

The completed energy study, which shall include all requirements

needed for the prescriptive and custom grants including the

following:

1. Executive Summary

2. Technical Information and Analysis

a) Description of the project and proposed energy saving

measures

b) Base case information

c) Enhanced case information

d) Estimated energy and demand savings associated with the

proposed project

e) Any applicable figures and tables

f) Simple payback period and/or life cycle costs

g) Estimated costs including design, materials, and

installation

3. Conclusions and Recommendations

a) Findings and key points summarized

b) Recommendations should be evaluated separately and

combined in the enhanced case

4. Appendix

a) Engineering assumptions and supporting information

b) Building data and plans

c) Cost assumptions

d) Publication information for each source cited in the

“Technical Information” section of your report

e) Listing of the publication title, author, place of

publication, page numbers, and date of publication

5.3.4 Energy Assessment Application Timeline




supporting documentation.

5.4 Combined Heat and Power Grant Pathway

This pathway was designed to encourage the development of CHP in Delaware.

Unlike traditional systems that produce electricity and heat separately, CHP, or

cogeneration, is the concurrent production of electricity and useful thermal energy

24

from a single source of energy. CHP systems are ideal for businesses with high

annual hours of operation and a high thermal load. CHP systems yield increased

energy efficiency, reduction in energy operating costs and improvements in energy

resiliency.

The CHP grant is based on a minimum efficiency requirement, minimum useful

thermal output requirement, and the size of system ($/kW).

5.4.1 CHP Grant Limits

CHP grant applications must propose a project offering a system that meets

the minimum 60% annual efficiency requirement and the minimum 1.0

MMBtu/hour useful thermal output requirement. The grants for eligible

projects will be awarded at a flat rate of $500 per kilo-watt installed up to

30% of the installed cost of the system, whichever is less. Grant payments

will not exceed $500,000 per project without written approval of the Division

Director.

Eligible measures for installed costs are limited to Genset equipment,

associated equipment (e.g. heat recovery jacket, switchgear, absorption

chillers), installation costs, engineering and project management costs and

decommissioning costs of pre-existing equipment.


ownership/control can receive more than $1,000,000 in grant awards within a

three-year period. By way of example, a parent and subsidiary (or sister

entities with a common owner) would not be eligible to receive more than

$1,000,000 in total combined grant awards within three consecutive program

years.

Program funds are limited and must be reserved prior to purchasing any

equipment to ensure availability.

5.4.2 CHP Eligible Products and Equipment

The following CHP system designs are eligible for review. Professional

Engineer (P.E.) signatures are required for the design portion of the project:

Reciprocating Engine

Microturbine

Steam Turbine

Gas Turbine

Fuel Cells

Equipment must be new and permanently installed. Equipment must receive

a full 3-year warranty against component failure, malfunction, and premature

output degradation. The warranty must cover all components for which the

program money is granted and cover the full cost of repair and replacement

of all components of the system. For professionally installed systems, the

warranty must cover the labor to remove and replace defective components

25

and systems. All products must be UL listed and installed according to local,

state, regional, and/or federal building and environmental codes.

A decommissioning plan must be provided outlining the proper disposal and

recycling details of any pre-existing equipment that will be removed.

Expansion of an Existing System

The incremental expansions of an existing CHP system are eligible. Grants

will be calculated based on the incremental expansion of the system, not total

system size. Equipment must be new and permanently installed.

Power Purchase Agreements

Third Party Vendor’s and Power Purchase Agreements are eligible. The full

Power Purchase Agreement with final signatures must be provided prior to

receiving grant payment.

Existing and Future Flood Risk Mitigation

Installations must be designed to avoid impacts from flooding, including

future sea-level rise. Applicants are encouraged to utilize the Flood Risk

Adaptation Map (FRAM) to determine whether the proposed site is within

the one-hundred year, one-meter, sea-level rise flood plain. See site:

www.firstmap.delaware.gov/FRAM

If applicants are within the one-hundred year, one-meter, sea-level rise flood

plain, applicants must submit a flood risk mitigation plan as part of the

design portion of the proposed system with their application.

5.4.3 CHP Application Process

Confirm that the proposed CHP system qualifies for a grant based on the

program requirements. Submit a completed and signed EEIF CHP grant

application form with a completed application package (See 5.4.6

Application Requirements Below).

After receipt of the completed application and all required supplementary

documentation, DNREC will evaluate the project for consideration of grant

pre-approval. All projects must be pre-approved before any equipment is

purchased or installation is started. The contractor and customer are fully

responsible for ensuring that all forms and documentation have been supplied

and the system meets all program requirements. DNREC will arrange a pre-

installation site inspection for all proposed CHP projects prior to issuing pre-

approval. If the requirements have been successfully met, a pre-approval

letter will be issued by DNREC to the applicant.

Funds will be reserved for 18 months on a first-come, first-served basis. The

final grant claim form and supporting documents shall be submitted within

18 months of the reservation date or funds will be forfeited. If the project

http://www.firstmap.delaware.gov/FRAM

26

cannot be completed within the 18-month period of reservation and the

applicant wishes for an extension, a milestone accomplishments report and

form letter should be submitted to DNREC two months ahead of the

reservation expiration date. DNREC will determine if a reservation extension

should be granted. After completing the project, the applicant must submit

the final documents pertaining to the project. DNREC will evaluate the

project and the required accompanying documents for consideration of grant

approval. DNREC will conduct a post-installation site inspection of the

system prior to final grant approval.

5.4.4 CHP Application Review Process

The following shows a flowchart of each workflow step with definitions

detailing each step below:





Application review:

DNREC reviews the application and design plan for completeness. If there is

any missing information, or if anything is needed in order to accurately

review the project, DNREC will follow up with the applicant. DNREC

reserves the right to deny applications that are unreasonably incomplete or

that fail to become complete after due diligence to collect the required

information. The program manager may also decide the application needs

additional study or metering data to be confident in the estimates, and may

notify the applicant to request additional information. Depending on the

additional information required, there may be additional program funds

available for these activities under the Energy Assessment grants

opportunity.


DNREC will conduct a pre-installation site visit on all proposed CHP

projects, in order to ensure that the installation has not yet begun and that

baseline conditions were accurately described in the application. During the

site visit, DNREC may also collect information to enable it to accurately

calculate savings.

27


If the project passes the primary and secondary application review, and is

approved by the Program Administrator, the applicant will be sent a pre-

qualification letter that reserves the grant amount for not more than 18

months. Applicants may begin the purchase and install of equipment upon

receiving the pre-approval letter. The letter will also include a disclaimer that

the grant award cannot be guaranteed if there are changes in scope or cost.




A post-installation site will be conducted to ensure that the project proceeds

from design to completion prior to awarding grant payment. Site visits will

be performed on all CHP project sites.

Final Review

Once the required final application requirements are submitted to DNREC, a

final review is performed on the application. This will ensure that the

program records reflect the actual site conditions. If the project passes both a

primary and secondary final review, and receives Program Administrator

approval, the application will be scheduled for grant payment.

Grant Payment

Once the project passes the final screening, the grant is ready to be disbursed

to the applicant. DNREC will send a letter notifying the applicant of payment


sheet.

5.4.5 CHP Application Timelines




supporting documentation, or 30 days after a scheduled inspection if

required. DNREC will ordinarily process the payment to the purchaser,

however, if the purchaser so requests in writing and documentation reflects

the grant value was reduced directly from the purchase price, DNREC will

process the payment to the retailer or installing contractor.

5.4.6 CHP Application Requirements

Applications must be completely and accurately submitted before any grant

can be paid. Required documentation includes:

Pre-Approval:



Itemized quotes and estimates for all equipment and the scope of

work, AND

28

Twelve consecutive electric and/or natural gas utility bills for each

meter on site, AND

If enrolled in a Third-Party Supplier Agreement for electric and/or

natural gas, twelve consecutive electric and/or natural gas supply

bills for each meter on site, AND

Typical Day (Peak Day alone is not sufficient) Hourly Electricity

and Heating Load Profile for the Facility for each month of the year

(based on metered data, utility 15-minute interval data, or estimated

based on other documented facility usage data), AND

If the system is greater than or equal to 800kW, a draft

Measurement and Verification Plan (M&V) must be submitted as

part of the application, AND

Installer’s Delaware Business License, Delaware Trade Specific

License, and Commercial General Liability Insurance Certificate,

AND

Design Plan with Professional Engineer (P.E.) signature showing

waste-to-heat end use, make and model, operation schedule, and

generation capacity, AND

Detailed Energy Model showing electrical generation on a monthly

basis, heat recovery on a monthly basis, avoided annual energy use,

fuel input on a monthly basis, total annual avoided electricity and

natural gas (or other) fuel consumption, total annual fuel input, and

calculation of overall system efficiency, AND

Installation Schedule outlining delivery dates for major components

and must show full operation within a year of pre-approval, AND

All applicable federal, regional, state, and/or local permits, AND

Interconnection Agreement, AND



If financed through a Power Purchase Agreement, the full

agreement and final signatures must be provided, AND

If proposed project site is within the one-hundred year, one-meter,

sea-level rise flood plain, a flood risk mitigation plan as part of the

design portion of proposed system must be submitted

Final Approval:

Finalized itemized project invoices, AND

Proof of Payment, AND

Finalized Interconnection Agreement with Proper System

Inspections, AND

Commissioning Report




29

6.0 Proprietary Application Information

DNREC may make all applications submitted available to non-State personnel for the sole

purpose of assisting in its evaluation of the applications. These individuals will be

required to protect the confidentiality of any specifically identified proprietary information

obtained as a result of their participation in the evaluation.

Proposals submitted may contain trade secrets and/or privileged or confidential

commercial or financial information which the applicant does not want to be used or

disclosed for any purpose other than evaluation of the application. The use and disclosure

of such data may be restricted, provided the applicant follows DNREC’s “Request for

Confidentiality” procedure contained in DNREC’s “Freedom of Information Act” or

“FOIA” regulation. It is important to understand that this FOIA regulation’s

confidentiality procedure is a necessary part of this regulation in that any information

submitted to DNREC is subject to public review unless deemed to be confidential by the

Secretary in accordance with the criteria and procedures established in the FOIA

regulation.

The burden lies with the applicant asserting the claim of confidentiality to meet the criteria

established in the FOIA regulation.

7.0 Retirement and Disposal

The intent of the Energy Efficiency Investment Fund is to increase energy efficiency

through retirement and replacement of inefficient equipment. The customer and contractor

shall appropriately retire and dispose of any product replaced as a result of an Energy

Efficiency Investment Fund grant.

The customer is responsible for the proper disposal or recycling of any waste generated as

a result of the project, including the disposal of fluorescent lamps (which contain mercury)

and ballasts suspected of containing PCBs. Any fluorescent ballast dated pre-1979 should

be considered to contain PCBs unless otherwise labeled.

8.0 Dispute Resolution

Should an applicant be denied a grant and disagrees with outcome, the applicant must

contact DNREC in writing. DNREC will respond within 10 days after the determination.

Should DNREC deem the application eligible, the application will be processed within the

next 10 business days.

9.0 Tax Liability

The applicant is responsible for any tax liability imposed as a result of the payment of

grants. Applicants are advised to contact a tax professional for more information.

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