tapping the energy efficiency and conservation loan program | for utilities
TRANSCRIPT
Tapping the Energy Efficiency and Conservation Loan Program | For Utilities
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Why address multi-family energy efficiency?
Load reduction is inevitable. How will you address it?
While overall energy usage continues to grow, multiple external pressures are driving increased focus on energy consumption and efficiency, especially within the multi-family housing sector.
•Growing number of utility-focused federal, state, & local energy efficiency requirements•More local governments requiring multifamily buildings to report energy consumption
Sources: 1. Urban Land, 3. EIA, 4. HUD, 5. Demand Institute
Regulatory Compliance
Usage Trends
Customer Demand
•Residential end use energy intensity (per sq. ft.) continues to decline3
•Multi-family housing is older and has higher potential for energy efficiency than other housing stock4
•“Satisfaction gap” exists between customers’ desire for and realization of energy efficient homes5
•Customers expect utilities to keep costs of energy low to ensure affordable homes
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How can EECLP help?
What if you had an opportunity to….
Utilities can anticipate and mitigate the impact of these changes in part through the Energy Efficiency and Conservation Loan Program (EECLP) of the Rural Utilities Service (RUS) at USDA.
Address Regulatory
Requirements?
Mitigate Risk?
Improve Customer
Satisfaction?
Address existing and pending federal, state or local requirements by providing measurable reductions in energy usage
EECLP can help…
Generate new revenue streams through on-bill financing, reduce peak demand, and increase load reliability with targeted retrofits
Meet customer needs by helping upgrade outdated buildings, deliver desired retrofits, and reduce utility spend for individuals in rural communities
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What is EECLP?EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing.
RUSLends at
treasury rates + 1/8th
Utility
Customer
Retrofit Implementer
Re-lends to customer
Directly funds retrofit projects
Executes retrofit projects
Re-pays retrofit project costs/ loan
Rural Dev.
Supports EECLP application process
Provides utility market share advantage
Helps increase customer satisfaction
Advances rural prosperity Helps meet energy
efficiency and regulatory requirements
Creates new revenue stream
Hedges against risk
EECLP Benefits
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What is EECLP?EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing.
RUSLends at
treasury rates + 1/8th
Utility
Customer
Retrofit Implementer
Re-lends to customer
Directly funds retrofit projects
Executes retrofit projects
Re-pays retrofit project costs/ loan
Rural Dev.
Supports EECLP application process
EECLP Fast FactsEligibility• Electric service providers in rural
areas (pop. < 20K) served by RUS Loan Terms• Tied to the useful life of the asset• Typically 15 yearsSample Projects• Energy efficiency and conservation
projects (e.g., on-bill financing)• Weatherization, HVAC and water
heater upgrades• Fuel cells• Energy audits• Utility energy services contracts• Consumer education and outreach
programs, and• Re-lamping for more efficient
lighting
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State Energy Program
Rural Co-op
1 State ids interested co-ops
2 *Co-ops agree; Begin EEP Planning
RHS+
Industry Trade Group
RHS & Industry Trade Group ids interested housing owners
Multifamily Housing Owners
2Owners agree; Begin estimating investment need
1 Complete estimation; Receive quotes
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3 Identify MFH Buildings in Service Area
(Optional) EEP Development Workshop
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Develop funding request business case
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Investment Decision Workshop to Select Retrofit Projects
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*Note: While Rural Co-Ops are shown here, EECLP is available to all Electric Utilities
What are the next steps?