1. Austin Energy Commercial Energy Efficiency

2. Austin Energy – About Us
Texas based Municipal Utility
Serve about 450,000 customers
Peak demand is about 2,800 MW
Some guiding policies
Austin Climate Protection Plan
Generation Resource plan
Efficiency and DSM goals
800 MW by 2020
Programs deliver about 50 MW per year
DR accounts for about 12 MW/yr (growth)
Two primary DR programs
Residential thermostats (2 programs)
Commercial/Industrial - Load Cooperative Program
Austin
January 9, 2014

3. Commercial Energy Efficiency
Commercial Energy Efficiency Rebates
January 9, 2014

4. Commercial Energy Efficiency
Market Place
Small Business Customers
Average less than 100 kW
501(c)3 Non-Profit Organizations that average less than 100 kW
Mid-Size to Large Commercial and Key Account Customers
Average more than 100 kW
501(c)3 Non-Profit Organizations that average more than 100 kW
January 9, 2014

5. Commercial Energy Efficiency
Qualifying for Rebates
You must be a current commercial customer with an Austin Energy electric account
Your business must operate within our peak hours
The equipment you install must exceed the IECC 2012 Energy Code.
Must follow Commercial Energy Efficiency Rebate Program Guidelines
January 9, 2014

6. Commercial Energy Efficiency
Energy Efficiency Measures for Small Business and Commercial Customers
HVAC – DX / VRF Multi-Split
Chillers
Lighting Retrofits (On & Off Peak)
Ceiling/Roof Insulation
Reflective Roof Coating
Window Treatments
ECM Fan Motors
Commercial Kitchen Equipment
Transformers
Uninterruptable Power Supply
Energy Recovery Ventilators
Cooling Towers
Variable Frequency Drives
Thermal Energy Storage
Heat Pump Water Heaters
Custom Technologies
New Construction Rebates
Guest Room Controllers
Plug Load Controllers
January 9, 2014

7. Commercial Energy Efficiency
Rebates for New Construction and Retrofit Projects
Retrofit projects
All individual Energy Conservation Measures qualify
New Construction Projects
Tiered rebate structure that rewards early participation:
Tier 1 – Design Phase, Pre permitting (125% of qualifying rebate)
Tier 2 – Construction Phase, Pre Certificate of Occupancy (100% of
qualifying rebate)
Tier 3 – Post Construction Phase, up to 6 moths after issuing C.O.
(50% of qualifying rebate)
January 9, 2014

8. Commercial Energy Efficiency
Maximum rebate is $200, per fiscal year per customer facility
site
Rebate cannot exceed 50% of the total project cost
Rebates of $57, and above must have the City of Austin council
approval
Rebate Limitations
January 9, 2014

9. Commercial Energy Efficiency
Rebate Process
Request a Customer Information Form and Rebate Application and we will it to you
Complete the Customer Information Form and Rebate application and submit it to along with a W-9 and manufacturer’s specifications for the equipment being installed
Your project will be assigned to an Austin Energy Commercial Representative
The Austin Energy Commercial Representative may perform an initial verification
Complete your project and the Austin Energy Commercial Representative will perform a final verification
Your project will be reviewed and submitted for payment
January 9, 2014

10. Commercial Energy Efficiency
ECAD Ordinance
January 9, 2014

11. Commercial Energy Efficiency
Reporting Deadlines for Commercial Buildings
EPA Portfolio Manager based benchmark requirement
No reporting requirement for buildings less than 10,000 square feet
Phased implementation or first report due date:
Larger than 75,000 square feet due before June 1, 2012
Less than 75,000 to 30,000 square feet due before June 1, 2013
Less than 30,000 to 10,000 square feet due before June 1, 2014
Industrial exemption changed to Manufacturing
Requires manufacturing energy sales tax exemption
January 9, 2014

12. Commercial Energy Efficiency
Commercial ECAD Reporting Totals
Tier
Average Score
Reported
Un-reported
Total
Percent of Total - Reported
Tier 1 62
469
295
764
61%
Tier 2 61
450
594
1,044
43%
Tier 3 58 69
1,910
1,979 3%
Totals
988
2,799
3,787 NA
January 9, 2014

13. Commercial Energy Efficiency
Commercial ECAD Information
Services Provided
Data aggregation (4 meters 80%)
How to Guide
Workshops
Use TACD and WCAD to identify buildings
Send letters in Fall to verify contact and building information
Send reminder letters in fall and spring
Holding a series of workshops to assist building owners benchmark
January 9, 2014

14. Commercial Energy Efficiency
Load Cooperative Program
January 9, 2014

15. Commercial Energy Efficiency
Why AE Operates Demand Response Programs
Contribute to strategic goals
Reduce AE peak demand
Reduce overall cost to customers
Cost effective (pass all 4 cost tests)
Including the RIM
Reduce AE demand during ERCOT 4CP
Reduces 4CP related charges
Reduce energy usage at times of high market energy prices (SPP) 15

16. Commercial Energy Efficiency
Load Cooperative
Easy way for customers to earn extra money
Goal is to reduce cost for all AE customers
Target ERCOT monthly peaks in June, July, Aug, & Sept
Typically call 12 to 50 events per year
Events typically between 4:00 Pm and 6:00 PM
No penalty for non performance
January 9, 2014

17. Commercial Energy Efficiency
Load Cooperative
Reduce demand when given 1 hour notice June – Sept.
Approximately 15 events lasting up to 3 hours
AE pays $1.25 per kWh curtailed
No penalty for underperforming or not participating in an event
Free audit to assist you in identifying opportunities
Free basic Load Profiler service for one year

18. Commercial Energy Efficiency
The Future of Demand Response
Develop Automated Demand Response (Open ADR)
DR Automatically initiated through EMS/BMS
Predetermined curtailment strategies
Operator notification with opt-out
Real time or near real time demand monitoring
Utilize open protocols (Open ADR 2.0b)
January 9, 2014

19. Commercial Energy Efficiency
Property Assessed Clean Energy (PACE)
January 9, 2014

20. Commercial Energy Efficiency
PACE Background
Property Assessed Clean Energy (PACE) SB 385 sponsored by Sen. Carona and Rep. Keffer, passed June 2013.
Bipartisan support from environmental, business communities
Austin City Council passed resolution in late June 2013 directing staff to research and develop PACE program.
Keeping PACE in Texas, nonprofit that helped pass SB 385, is now working to organize implementation across Texas.
Did the passage of SB385 affect on-bill financing?
No. But Council directed us to reevaluate on-bill financing and repayment.
January 9, 2014

21. Commercial Energy Efficiency
PACE Background
What is PACE?
Provides special assessment for water and energy upgrades.
In Texas, restricted to commercial (including multifamily) and industrial properties. No single-family residential properties.
Cost of financing is offset by water and energy savings
How does PACE work for the property owner?
Property owner identifies energy and water saving opportunities
Property owner qualifies for program and financing
Financing source can be public bonds or private financing.
Property owner takes out PACE loan
PACE, with the consent of the lien holder, is a senior lien and stays with the property (not with the owner)
Property owner pays back loan through a special assessment
Why does PACE not work in the single family residential sector?
In July 2010, the Federal Housing Finance Agency issued a directive prohibiting PACE loans from taking senior lien position over any mortgages insured by Fannie Mae or Freddie Mac, effectively halting PACE activity in the single family sector. Many other states moved ahead with implementing commercial and industrial PACE programs. SB 385 also prohibits using PACE financing for public buildings.
Who will pay for all of the fees associated with a PACE project, such as an energy audit or admin fees?
In Texas, SB 385 specifically allows for any fees associated with a PACE project to be rolled into the principle of the financing.
If using public financing, G.O. bonds not permitted.
January 9, 2014

22. Commercial Energy Efficiency
PACE Background
How does PACE work for local governments?
Administer own program or contract a 3rd party administrator
Identify program’s geographic boundaries (multiple local governments can join together)
Develop a financing plan: use bonds and/or 3rd party financing
Establish program eligibility and underwriting standards
Take steps to establish program
Publish a report with details of a fully developed program
Take public input; hold a public hearing
Adopt a “resolution of intent” to create a program
Notes: Local government = county or municipality.
If using public financing, G.O. bonds not permitted.
Most states use third-party administrators.
Outline of the Tasks and Decisions Required to Create a PACE Program under SB 385
To create a PACE program, a county or municipality (“local government”) must make a number of decisions:
How will the program be administered?
A local government may:
administer the program itself; this involves hiring and setting the compensation of a program administrator and program staff, or contracting for the professional services necessary to administer the program, 12 Tex. Loc. Gov’t Code § (d);
jointly implement a regional program; a local government may implement a program with any combination of other local governments, working with other local governments may help to promote uniform and sustainable programs, see id. at § ; or
contract with a third party to administer the program. Before contracting with a third party administrator, a local government should use a Request for Proposal (RFP) to judge the potential administrator’s qualifications, experience, and capabilities, see id. at § (d).
What will the boundaries for the program’s region be?
A region’s boundaries can be separate, overlapping, or coterminous. Id. at § (d).
A local government can designate one or multiple regions for implementing a program located within the local government’s jurisdiction (a municipality’s jurisdiction includes the municipality’s extraterritorial jurisdiction). Id. at § (b) – (d).
How will the local government finance eligible projects?
A local government must develop a form contract between the local government and the property owner specifying the terms of assessment under the program and the terms of financing provided by a third party or local government. Id. at § (a)(2).
If 3rd party financing:
develop a plan to ensure sufficient capital; and
develop a form contract between the local governments and the third party regarding the servicing of the debt through assessments. Id. at §§ (a)(3), (a)(6).
If the local government will finance the project, develop a plan to raise capital. Id. at § (a)(6).
If bonds will be issued to provide capital to finance qualified projects:
decide what the maximum annual dollar amount for financing projects through contractual assessments provided by the local government will be, id. at § (a)(7)(A);
determine a method for ranking requests from property owners for financing in priority order if requests appear likely to exceed the maximum amount, id. at § (a)(7)(B);
develop a procedure for determining the interest rate and period during which contracting owners would pay an assessment, id. at § (a)(8); and
develop a procedure for determining the maximum amount of an assessment, id. at § (a)(7)(C).
Develop a method for ensuring that property owners requesting to participate in the program demonstrate the financial ability to fulfill financial obligations. Id. at § (a)(10)
Develop a method for ensuring that the period of a contractual assessment does not exceed the useful life of the project that is the basis of the assessment. Id. at § (a)(8).
Develop procedures for collecting the proposed contractual assessments. Id. at § (a)(16).
Based on the above information, what will the application process and eligibility requirements for the program will be?
A local government must:
decide what kinds of qualified projects will be subject to contractual assessments, id. at § (a)(4);
develop quality assurance and anti-fraud measures for the program, id. at § (a)(15); and
decide what marketing and/or participant education services will be provided for the program, id. at § (a)(14). Id. at § (a)(9).
After a local government has answered the questions above, a local government must complete the following tasks to create the program:
Publish a report for the proposed program including:
a map showing the boundaries of the proposed region;
a form contract between the local government and the property owner specifying the terms of assessment under the program; and the terms of financing provided;
if the proposed program provides for third-party financing, a form contract between the local government and the third party regarding the servicing of the debt through assessments;
a description of types of qualified projects that may be subject to contractual assessments;
a statement identifying a local government official authorized to enter into written contracts on behalf of the local government;
a plan for ensuring sufficient capital for third-party financing and, if appropriate, raising capital for local government financing for qualified projects;
if bonds will be issued to provide capital to finance qualified projects as part of the program:
the maximum aggregate dollar amount for financing through contractual assessments to be provided by the local government;
a method for ranking requests from property owners for financing in priority order if requests appear likely to exceed the maximum authorized amount
a method for determining: the interest rate and period during which contracting owners would pay an assessment; and
 a method for determining the maximum amount of an assessment;
a method for ensuring that the period of the contractual assessment does not exceed the useful life of the project that is the basis for the assessment;
a description of the application process and eligibility requirements for financing qualified projects;
a method for ensuring that property owners requesting to participate in the program demonstrate the financial ability to fulfill financial obligations;
a statement explaining the manner in which property will be assessed and assessments will be collected;
a statement explaining that a property owner must obtain written consent from the holder of a mortgage lien, if applicable before, before participating in a PACE program, see id. at § ;
a statement explaining that a review of baseline water or energy conditions and projected water or energy savings is required for each project, as well as verification that the qualified project was completed as intended (any review must be conducted by an independent third party), see id. at § ;
a description of the marketing and participant education services to be provided for the program;
a description of the quality-assurance and anti-fraud measures to be instituted for the program; and
the procedures for collecting the contractual assessments. Id. at § (a).
Make the report available for public inspection:
on the local government's website; and
at the office of the official designated to enter into written contracts on behalf of the local government. Id. at (c).
Adopt a resolution of intent to create a program.
Include:
a finding, if appropriate, that financed projects will serve a valid public purpose;
a statement that the local government intends to make contractual assessments to repay financing;
a description of the types of qualified projects;
a description of the boundaries of the region;
a description of any proposed arrangements for third-party financing;
a description of local government debt servicing procedures if the program uses third-party financing;
a reference to the report for the proposed program and a statement identifying the location where the report is available for public inspection;
a statement of the time and place for a public hearing on the proposed program; and
a statement identifying the appropriate local official and the appropriate assessor-collector for purposes of consulting regarding collecting the proposed contractual assessments with property taxes imposed on the assessed property. Id. at § (a)(1).
Hold a public hearing at which the public may comment on the proposed program, including the report for the proposed program. Id. at § (a)(2).
If two or more local governments implement a program jointly, a single public hearing is sufficient to satisfy this requirement. Id. at § (b).
Adopt a resolution establishing the program and the terms of the program that includes:
each item included in the report for the proposed program—this resolution may incorporate the report, or the amended version of the report, by reference, id. at § (b); and
a description of each aspect of the program that may be amended only after another public hearing is held. Id. at § (a)(3).
January 9, 2014

23. Commercial Energy Efficiency
Current PACE Activity
11 states (plus Washington D.C.) have active PACE programs, with varying levels of success. Many others are developing programs.
Program implementation is complex; lessons from other states are informing Texas program design standards.
Regional approach is preferable: provides consistency and economies of scale.
Important to get it right from the start, avoid confusion.
City of Austin staff actively participating in statewide planning efforts.
Number of states with PACE legislation enacted:
31 plus Wash. D.C.
Number of states with active programs: 11, plus D.C.
CA, CO, CT, FL, ME, MI, MN, MO, NY, OH, VT, WI, and Washington D.C.
How many PACE projects have been financed?
The most recent number from pacenow.org lists 194 commercial projects, with over half of the projects financing less than $50k worth of upgrades, totaling $51.4m in funded projects
What is the market demand for PACE in Texas?
Unsure. Consulting BOMA.
Goal is to “provide uniform standards and procedures” for use throughout state of Texas. This is one of the key lessons learned from other states such as California that had multiple programs, which was confusing and onerous to property owners, banks, and service providers.
If Austin moves forward before the statewide templates are in place, it could be repeating some of the problems that cropped up elsewhere when multiple programs in different jurisdictions confused customers.
January 9, 2014

24. Commercial Energy Efficiency
Current PACE Activity
Keeping PACE in Texas is leading the effort to develop “PACE in a Box” – a toolkit of recommendations and templates for counties and municipalities to use.
Goal: Create viable, cost effective, user-friendly, scalable and sustainable PACE programs in Texas.
Timeline: Dec 2013 toolkit draft; Jan 2014 marketing and outreach; Fall 2014 first programs expected to launch.
Committees of experts from across Texas are crafting tools for “PACE in a Box” that can be used statewide. City of Austin staff are represented on all committees.
Represented: Building Owners and Managers Assoc (BOMA), State Energy Conservation Office (SECO), Texas Mortgage Bankers Assoc (TMBA), Texas Assoc of Business (TAB), Travis County Tax Assessor/Collector, Texas Assoc of Regional Councils (TARC), Public Financial Management (PFM), Environmental Defense Fund (EDF), Sierra Club, and so on.
Full list of organizations:
1st Choice Energy
360 Energy Savers, LLC.
A&M TX Cntr for Applied Technology
Abacus Property Solutions, LLC
Arndt Group
Atlas Efficiency Solutions
Austin Energy
Austin Water Utility
BOMA/Columbia Property Trust
BOMA/Construction Consulting Int.
BOMA/STREAM REALTY PARTNERS
BOMA/Bradford Management Co
Brandt Companies, LLC
Business & Community Lenders of TX
Capital One Bank
City of Dallas Economic Development
City of San Antonio
Clean Energy Associates, LLC
Clean Power Professionals
Comerica Incorporated
Con Ed Solutions
Dallas Office of Economic Dev.
David Taussig & Associates, Inc.
Demeter Power Group, Inc.
Division 7 Solutions, Inc.
Ecosense Energy
El Paso Green Communities
Entegral Solutions
Environmental Defense Fund (Investor Confidence Project)
First Victoria National Bank
Frontier Associates LLC
Green Bank
H.W. (Bill) Hoffman and Associates
HARC
Houston-Galveston Area Council
Hunton Services
Indeck - Keystone Energy LLC
Jackson Walker L.L.P.
Johnson Controls Inc.
Leidos Engineering
Longhorn Solar
McDaniell, Hunter & Prince, Inc.
McDonough Capital
Mercantile Energy Associates
Mission Verde Alliance
Montage Consulting Group
Nexos Resource Partners, LLC
NRG
ONTILITY
Padre Energy
Pepco Energy Services
Principal Solar Institute
Public Citizen
Public Financial Management, Inc.
San Antonio Water Conserv Dept
Schneider Electric
SECO
Sierra Club
SPEER
Sustainability Solutions Group
Texas Assoc. of Regional Councils
Texas Bankers Association
Texas DoA, Office of Rural Affairs
Texas Industries of the Future
The Brandt Companies, LLC
Thompson & Knight
TKO Energy Capital, LLC.
Tom Fitzpatrick/CATEE
Trane
Travis County Attorney's Office
Travis County Tax Assessor Collector
TREIA
True North Associates
TX Assoc. of Business
TX Assoc. of Regional Councils
TX Clean Energy Coalition
TX Comb. Heat & Power Initiative
TX Conf. of Urban Counties, P3
TX DoA, Office of Rural Affairs
TX Mortgage Bankers Assoc.
University of Houston
US Steel Tubular Products (TAM)
USGBC
UT Law School
Vail Energy Group
Water Conservation and Tech. Center, A&M, San Antonio
Way Services
WHR Architects
Winstead PC
January 9, 2014

25. Commercial Energy Efficiency
Current PACE Activity
Ongoing: participate in “PACE in a Box” and internal planning meetings; legal analysis of PACE and on-bill financing (per Council).
September: submit interim memo to Council.
November: provide updates to EUC, RMC.
December: submit status report update to Council.
Jan. – March: continue participating in statewide planning; ongoing work to develop regional program.
January 9, 2014

26. Thank You! Contact Us Twitter @austinenergy Facebook
City of Austin - Austin Energy
Customer Care Center
721 Barton Spring Rd.
Austin, Texas p e.
Thank You!
Terry Moore, Commercial Program Manager
721 Barton Spring Rd.
Austin, Texas e.
Scott Jarman – Consulting Engineer, e.
Twitter
@austinenergy
Facebook
facebook.com/austinenergy
January 9, 2014