Delaware Energy Efficiency Investment Fund Program ...

1 Delaware Energy Efficiency Investment fund Program Guidelines and Operational Procedures Version Effective November 2017. Table of Contents 4. Statutory Authority .. 4. Energy Efficiency Investment fund Statute and Appropriation .. 4. Delaware Energy Efficiency Investment 5. General Provisions .. 5. Pre-Approval .. 5. Inspections .. 6. Invoices and Other Final 6. Program 6. State Energy Program Revolving Loan fund .. 7. Eligibility .. 7. Permits .. 7. Installing Contractor 8. Education and Licensure .. 8.

2 Insurance Requirements .. 8. Statement of Reliability and Good Standing .. 8. Limitation of Funds .. 8. Participating Contractor List .. 8. Eligibility .. 9. Application Requirements .. 10. Application Process .. 10. Warranty .. 11. Code Compliance .. 11. Delaware Energy Efficiency Investment fund Pathways .. 12. Prescriptive Pathway Grants .. 12. Prescriptive Grant Limits .. 12. Prescriptive Accepted Products and Equipment .. 13. Prescriptive Application 13. Prescriptive Application Timeline .. 14. Prescriptive Application Requirements.

3 16. Custom Pathway Grants .. 17. Custom Grant Limits .. 17. Accepted Custom Products and Equipment .. 17. Custom Application Process .. 18. Custom Application Review Process .. 19. Custom Application Timeline .. 21. Custom Application Requirements .. 21. Energy Assessment Grants .. 21. Energy Assessment Grant Limits .. 21. Accepted Audits .. 22. Single Purpose or Targeted Energy 22. Comprehensive Audit .. 22. Energy Assessment Application Process .. 22. Energy Assessment Application Timeline .. 23. Combined Heat and Power Grant Pathway.

4 23. CHP Grant Limits .. 24. CHP Eligible Products and Equipment .. 24. CHP Application Process .. 25. CHP Application Review Process .. 26. CHP Application Timeline .. 27. CHP Application Requirements .. 27. Proprietary Application Information .. 29. Retirement and Disposal .. 29. Dispute Resolution .. 29. Tax Liability .. 29. 3. 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.

5 These guidelines provide rules of practice and procedures for grant applications and disbursement of grants for Energy Efficiency projects in Delaware . Statutory Authority These guidelines are disseminated under authority of 29 Delaware Code, Section 8030. 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.

6 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 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 .

7 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.

8 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 4. 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.

9 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 .

10 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 Delaware Energy Efficiency Investment fund 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.