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HomeMy WebLinkAbout09 - City-Wide LED Streetlight RetrofitCITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: TITLE: ABSTRACT: January 12, 2016 Agenda Item No. 9 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL George Murdoch, Municipal Operations Director - 949-644-3055, gmurdoch@newportbeachca.gov Cynthia Owens, Administrative Manager 949-644-3057 City -Wide LED Streetlight Retrofit Request authorization to apply to Southern California Edison (SCE) for the reservation of funds to retrofit approximately 3,224 City streetlights to light emitting diodes (LED) fixtures and to complete the On -Bill Financing (OBF) application once it is received from SCE. RECOMMENDATION: Authorize the City Manager to execute the SCE incentive application, OBF application, OBF agreement and other documents related to the application process with SCE for the City -Wide LED Streetlight Retrofit. FUNDING REQUIREMENTS: No funding is requested at this time. DISCUSSION: In October 2013, the City enrolled with The Energy Network to take advantage of the no -cost services provided by their firm. The Energy Network evaluates projects for energy efficiency and assists jurisdictions with the completion of these projects. One potential project is the retrofit of approximately 3,224 City streetlights and intersection lights to energy efficient and cost effective LED fixtures. By implementing this project, the City will realize an annual savings in reduced electrical costs to power the LED fixtures and a decrease in streetlight maintenance costs. 9-1 City -Wide LED Streetlight Retrofit January 12, 2016 Page 2 The Energy Network's turnkey delivery approach will allow the City to retain a qualified, competitively selected contractor for this project using procedures expressly authorized under Government Code Section 4217, et seq. Instead of using the traditional design - bid -build delivery method, staff determined that it would be more efficient and economical for the City to utilize its National Joint Powers Alliance (NJPA) membership to take advantage of the national cooperative contract purchasing program to complete this project. Since all NJPA contracts are competitively bid nationally and vendors are pre -qualified by knowledgeable committees with expertise in those trades, the City benefits from the reduced pricing made possible by large volume national contracts. Once staff has reviewed the vendors and their proposed costs, the final award of the contract will be brought back to the City Council. In order to utilize this program, the City must complete a SCE incentive application, OBF application, and, once it is approved by SCE, execute the OBF agreement. Once these steps have been completed, the City will then select a vendor through the process described above. Proiect Summary The City owns and maintains over 5,000 streetlights and intersection lights. The Energy Network is recommending an estimated 3,224 qualifying lights for retrofit. No decorative streetlights have been identified for retrofit as part of this project. The conversion to LED fixtures has the potential to save the City over $100,000 annually in energy costs. Additionally, the City will realize maintenance cost reduction over the 15 -year lifespan of LED fixtures, which is estimated at $55,000 each year. The total annual savings is estimated to amount to over $155,000. Project Benefits The conversion of the existing City streetlights to LED fixtures will provide a multitude of benefits to the City, including: • Reducing the cost to maintain streetlights; • Capturing $559,419 in utility incentives; • Reducing greenhouse emissions equal to removing 2,870 vehicles off the road; and • Decreasing the effect of future utility costs increases on the General Fund. Project Costs The total project cost for the conversion of City streetlights to LED fixtures is estimated at $1,176,271 and will initially require an allocation from the General Fund. SCE will 9-2 City -Wide LED Streetlight Retrofit January 12, 2016 Page 3 provide an estimated $559,419 in incentives as reimbursement to the City once the installation is completed. This is approximately 47.6 percent of the total cost. The remaining 52.4 percent of the costs, estimated to be $616,852, will be funded through OBF. SCE's OBF program allows public agencies to finance energy-efficient projects with zero -interest and pay back the loan as part of their utility bill. Other local agencies such as Huntington Beach and Costa Mesa have successfully implemented energy saving projects utilizing OBF. With OBF, the City will receive a reimbursement check from SCE estimated at $616,852 upon project completion. These funds will then be repaid on the City's streetlight utility bill over a period of several years. Staff will return to Council to request funding for the project once actual project costs have been obtained and a vendor has been selected for this project. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A: SCE On -Bill Financing Application Attachment B: SCE Incentive Application 9-3 ATTACHMENT A uwmceN Winmr4m EDISON' 2015 On -Bill Financing Application This On -Bill Financing (OBF) Application, along with an Incentive Application (defined herein) must be submitted and approved priorto purchasing or installing your equipment. Approval of this Application does not guarantee funding. OBF Loan funding requires completed installation of equipment and fulfillment of all terms and conditions contained in this Application. Please read all term and conditions of this Application carefully before signing, and contact your SCE representative or Contractor for further information. Customer Information City of Example Company/Business Name Address, City, CA 92618 Company/Business Mailing Address City Contact Authorized Company/Business Representative SCE Account Representative Name (if applicable) Tax Payer ID and/or SS# Environmental Services Analyst Title Customer's Authorized Agent Information (Contractor designated in Section lb of the Incentive Application --If Applicable) The Energy Coalition Customer's Authorized Agent Company Name 47 Discovery, Suite 250, Irvine, CA 92618 Customer's Authorized Agent Mailing Address Rebecca Hausheer Customer's Authorized Agent Representative Title Tax ID or SS# for Customer's Authorized Agent Project Site Information Please complete this table, indicating all the Service Account(s) included in your Energy Efficiency project. List each Service Account separately (i.e., one Service Account per line). The Service Accounts listed on this Table should match all the Service Accounts listed on the Incentive Application. Service Account # 3-001-3523-50 Customer Account # Only required for Customized measures 2-27-656-6247 Prosect Cost $500.00 Estimates kWh Savings* 0.0 Incentive K1 1/7 Program Description The On -Bill Financing (OBF) program is offered by Southern California Edison Company (SCE) to qualified SCE non-residential service customers (Customer) to offset the cost of purchasing and installing eligible energy efficiency equipment (Solutions). Through OBF, qualified Customers will receive zero percent (0%) interest, no - fee, unsecured financing for Solutions for which incentives and rebates are approved under an eligible SCE energy efficiency program (Eligible Program).1 Financing is available to qualified Customers for up to one hundred percent (100%) of the actual installed cost (up to the amount approved by SCE) of approved Solutions, less rebates or incentives received from SCE under applicable Eligible Program(s). The minimum loan amount per service account available through OBF is five thousand dollars ($5,000). The maximum OBF loan amount available per service account is (i) two hundred fifty thousand dollars ($250,000) for government and institutional taxpayer -funded Customers, and (ii) one hundred thousand dollars ($100,000) for commercial Customers2, including general business, industrial and agricultural entities. Customers may qualify for multiple loans under OBF provided the aggregate dollar amount of the loans does not exceed the maximum OBF loan amount per service account stated above.3 The maximum loan term for a taxpayer -funded government or institutional Customer is ten (10) years (or the expected useful life4 of the installed Solutions, whichever is shorter). The maximum loan term for a commercial Customer is five (5) years (or the expected useful life of the installed Solutions, whichever is shorter). The monthly loan repayment amount will be approximately equal to the estimated monthly dollar savings Customer is expected to receive through their SCE utility bill due to the Solution's estimated energy savings. The fixed monthly loan repayment amount will be invoiced as a line item on Customer's SCE bill. In no event will Customer be entitled to receive a loan amount in excess of one hundred percent (100%) of the actual installed cost (up to the amount approved by SCE) of approved Solutions, less rebates or incentives received for such Solutions under the Eligible Program(s). If the projected loan term is beyond the OBF loan term limit or exceeds the installed Solutions' expected useful life, a loan of a lesser amount may be approved at SCE's sole discretion. The OBF program has a limited budget. SCE will accept this On -Bill Financing Application (OBF Application) from qualified SCE Customers and will reserve funds on a first -approved, first-served basis until funds are depleted or the OBF program is terminated, whichever occurs first. This OBF Application is for approval of a reservation of loan funds only. Issuance of OBF loan funds is conditioned on Customer's installation of approved Solutions in accordance with the selected Eligible Program (s), satisfaction of all Eligible Program requirements, and execution by Customer of the On -Bill Financing Loan Agreement. The terms and conditions of SCE's OBF program may be modified or terminated without prior notice. 1 Eligible Programs include SCE's Express Solutions pending (not yet installed), Customized Solutions, and rebate/incentive offerings under SCE's Third -Party and Partnership Programs. See www.sce.com/onbill for details Demand Response Technology Incentives Program is not an Eligible Program. To ensure eligibility of a planned Solution(s) please review the Express Solution and Customized Solutions eligibility requirements in the Energy Management Solutions Directory at www.sce.com/Solutions. 2 A taxpayer -funded Customer is defined as a Customer using tax revenue to pay utility bills associated with a service account, included but not limited to cities, counties, public or state -funded schools, public libraries and government offices. 3 A taxpayer -funded Customer is allowed to designate one Service Account to receive loan amounts up to $1 million, either as a single loan, or as a total of multiple loans for that Service Account. 4 The expected useful life (EUL) of a Solution is an average length of time a Solution may be operational, based on historical analysis. If there is more than one Solution installed, the EUL of all installed Solutions will be that of the Solution which contributes the greatest kWh savings for the project. 2/7 9-5 Eligibility To qualify for the OBF program, Customer must receive an incentive and/or rebate from SCE pursuant to an Eligible Program. Customer must satisfy all requirements of each selected Eligible Program, including but not limited to execution of such Eligible Program's incentive application (detailed below) and, if applicable, an Eligible Program agreement (see OBF Application Process, A. below). The applicable Energy Management Solutions Incentives Application(s) for Business Customers or Energy Management Solutions Incentives Application for State of California Partnership (both referred to as "Incentive Application") executed by Customer are hereby incorporated into this OBF Application by this reference. If there is any conflict between the terms and conditions of any Eligible Program Incentive Application and the terms and conditions of this OBF Application, the terms and conditions of this OBF Application shall control. If there is any conflict between this OBF Application and the On -Bill Financing Loan Agreement, the On -Bill Financing Loan Agreement shall control. To qualify for the OBF program, Customer must also satisfy each of the following conditions: A. Customer must be an existing commercial, industrial, agricultural, government or institutional customer of SCE. B. Customer must have been an SCE customer in the same business (i.e., maintained an active SCE account) for at least 24 consecutive months prior to the start of participation in OBF. C. Customer must be in good credit standing with SCE including: (1) no disconnect notice in the past 24 months; (2) no 48-hour shut-off notices in the past 12 months; (3) no returned payments/checks in the past 12 months; (4) not have a deposit on its account to establish or reestablish credit in the past 12 months; and (5) no more than three Overdue Due Notices (20 days late) in the past 12 months. OBF Application Process , Applying Customers must follow these steps: A. Customer or Customer's Authorized Agent, if designated, must submit a completed and signed Energy Management Solutions Incentives Application for Business Customers or Energy Management Solutions Incentives Application for State of California Partnership (both referred to as "Incentive Application") along with this 2015 On -Bill Financing Application. Submit both the Incentive Application and this OBF Application online at www.sceonlineapp.com5. SCE will use both applications to determine if Customer is eligible to participate in the OBF program based on Customer's SCE utility bill payment history and the incentive eligibility of selected energy efficiency Solutions. Incomplete or incorrect applications cannot be processed. Electronic, scanned or facsimile signatures may be used for the purposes of enforcing the terms of this Application as though they were originals. Customer may withdraw this OBF Application for any reason by providing SCE with a written notice of such withdrawal. B. An SCE engineer or approved third -party reviewer will review the Incentive Application, including an inspection of Customer's existing equipment. If the existing equipment has been removed, Customer's project will not be eligible for OBF funding, and may not qualify for an SCE rebate/incentive under an Eligible Program. C. If Customer meets the OBF eligibility requirements and Customer's proposed Solutions set forth in the Incentive Application qualify for rebates and/or incentives, then SCE will reserve OBF loan funds based on the eligible Solutions. When the applicable requirements are met, SCE will consolidate multiple service accounts into one individual OBF loan to provide Customer with the convenience of only one OBF loan rather than multiple OBF loans. A reservation of funding does not guarantee loan funding. Funding shall occur only upon satisfaction of all requirements set forth in this OBF Application. If the OBF Application is denied, SCE will provide Customer and Customer's Authorized Agent (if applicable) with a written statement of the specific reasons for the denial within 30 days of the denial. 5 For customers without capability to submit this OBF Application online, the Incentive Application and this OBF Application may be submitted . by mail to Southern California Edison, Business Incentives, P.O. Box 800, Rosemead, CA 91770, by email to Businesslncentives@sce.com 3/7 or by fax to 626-633-3243. OBF Application Process (continued) D. Upon notice from SCE of qualification for OBF and reservation of funding, Customer will schedule and install the SCE -approved Solution(s) and when completed, shall submit to SCE a project "Installation Report," along with an itemized proof of purchase, including purchase and installation dates along with specification sheet(s) for the installed Solution(s). E. SCE will complete a technical review, including a post -installation inspection of the eligible installed Solution (s). The final loan amount will be re -calculated by SCE at completion and final approval of installation to reflect any changes in the actual installed costs, incentive amount, expected useful life, or estimated energy savings of the Solutions. F. Customer will review, sign and have notarized the On -Bill Financing Loan Agreement 6 provided by SCE specifying Customer's obligations for repayment and all other terms and conditions, and shall submit it to SCE. The On -Bill Financing Loan Agreement will expire ninety (90) days after issuance if the Customer has not returned the executed loan documents to SCE. If Customer still wishes to obtain a loan after expiration of the initial On -Bill Financing Loan Agreement, Customer may notify SCE in writing, and SCE, at its sole discretion, may provide Customer with a new On -Bill Financing Loan Agreement, subject to confirmation that the Customer continues to meet all of the OBF Program requirements. G. Upon receipt of the On -Bill Financing Loan Agreement and satisfaction of all remaining OBF program requirements and the selected Eligible Program requirements, SCE will process payment of Customer's OBF loan funds and issue a loan check payable to Customer (or Customer's Authorized Agent contracting on behalf of Customer and designated in this OBF Application) to be sent by mail. H. The initial OBF monthly loan installment will appear on Customer's SCE bill within sixty (60) days of the effective date of the On -Bill Financing Loan Agreement and will continue for the term of the loan or until the loan balance is paid off, or as may otherwise be provided in the On -Bill Financing Loan Agreement. Key OBF Loan Terms This section provides a non -exhaustive list of some of the key loan terms contained in the On -Bill Financing Loan Agreement, for information purposes only. THIS IS NOT THE OBF LOAN AGREEMENT, WHICH MAY BE EXECUTED BY THE PARTIES ONLY AFTER THE APPLICATION IS APPROVED, THE PROJECT COMPLETE, AND THE FINAL LOAN AMOUNT DETERMINED, IN ACCORDANCE WITH PROGRAM RULES. IN THE CASE OF ANY CONFLICT BETWEEN THESE PROVISIONS AND THE ON -BILL FINANCING LOAN AGREEMENT, THE TERMS AND CONDITIONS OF THE ON -BILL FINANCING LOAN AGREEMENT SHALL CONTROL. A. Amount Financed and Loan Terms. The On -Bill Financing (OBF) Loan Agreement shall set forth the amount financed, based on the calculations described in this Application, the loan term, payment amounts, service accounts to be billed, and the designated Third -Party Payee(s), if any. B. Prepayment and Partial Payments. Customer may pay the Loan in monthly installments or pre -pay the entire Loan in one lump sum without penalty, but pre -payments for less than the remaining balance is not allowed. Any partial payments will be applied in equal proportion to the energy charges on the bill and the Loan, and the Customer will be considered to be delinquent and in default of both the energy bill and the Loan. C. Late Payments. No late payment charges or interest will be assessed for delinquent payments on the Loan Obligation. However, SCE may assess late payment charges for delinquent payments of energy charges pursuant to SCE's Rule 9 which is incorporated herein by reference. 6 The key terms and conditions of the On -Bill Financing Loan Agreement are set forth in the following section; however, Customer will receive actual On -Bill Financing Loan Agreement for execution once the Project is complete and the actual loan amount is known. 4/7 9-7 Key OBF Loan Terms (continued) D. Returned Payments. SCE may require payment of a $8.00 Returned Check Charge for any check returned from Customer's financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored. E. Discontinuance of Service: Amounts due under the OBF Loan Agreement will be amounts deemed due under each SCE utility bill to the Customer's Service Account(s), and a default under the OBF Loan Agreement will be treated as a default under the Customer's Service Account(s). Customer's Loan Obligation (as defined in the OBF Loan Agreement) is subject to the discontinuance provisions of SCE's Rule 11, Discontinuance and Restoration of Service, Section B, Nonpayment of Bills or Summary Bills. F. Breach and Acceleration: Any breach by Customer under a Third Party / EMS Agreement or the OBF Agreement will constitute a breach under all of the above referenced agreements. SCE may determine the OBF Agreement to be breached and Customer to be in default if Customer: (1) sells, assigns or otherwise transfers ownership, possession or title of the Site or the Equipment, (2) fails to pay the Monthly Payment amount when due, (3) closes, discontinues or otherwise causes the termination of the Service Account(s), or (4) otherwise breaches the OBF Agreement and/or the Third Party / EMS Agreement, and the breach is not cured as specified therein. Notwithstanding anything to the contrary in the Third Party / EMS Agreement, a breach and default as set forth in this section shall not be subject to any additional cure period. Following a breach as set forth in this section, SCE shall have the right to declare the entire unpaid balance of the Loan Obligation immediately due and payable. Description of Additional OBF Loan Agreement Provisions. (1) SCE may, but is not obligated to, file a UCC -1 Financing Statement against the Equipment to secure Loan and Customer will agree to execute all documents in connection with the Financing Statement in order for SCE to perfect its security interest; (2) Customer will authorize SCE and its attorneys, upon a Customer breach, to enter a confession of judgment pursuant to Code of Civil Procedure Section 1132 et seq.; (3) the OBF Loan Agreement shall continue in effect until the Loan is paid in full; (4) Customer may not assign its rights or delegate its duties under the OBF Loan Agreement; (5) the OBF Loan Agreement can only be modified or amended through a signed writing by both Customer and SCE, except that, in any given month that Customer does not make full payment on the Loan Obligation, SCE may make payment arrangements, in SCE's sole discretion; and (6) the Customer must represent and warrant that he or she is duly authorized and has the legal capacity to execute and deliver the OBF Loan Agreement on behalf of Customer, and to perform Customer's obligations under the OBF Loan Agreement. 5/7 Verification and Certification I, Customer and applicant hereunder, affirm I have read, understand and agree to all of the specific OBF terms, conditions and other requirements and restrictions set forth in this OBF Application. I certify that all of the information I have provided in this OBF Application is true, correct and complete. I also fully understand my obligations as a Customer under the OBF program. I understand I must meet all eligibility criteria and requirements of both the OBF program and my selected Eligible Program(s) in order to participate in OBF. I understand SCE reserves the right to request additional information to verify my eligibility for OBF. Signature of Customer Date Signature of Customer's Authorized Agent (if applicable) Date I, as Customer and applicant, further certify if a Customer's Authorized Agent is listed above, I have entered into a contract with said Cus- tomer's Authorized Agent for the installation of energy efficiency Solutions at the project site listed above. I understand that: (1) SCE makes no warranty or representation about the Customer's Authorized Agent's qualifications; (2) 1 am solely responsible for selecting Customer's Authorized Agent to implement the project on my behalf; (3) Customer's Authorized Agent is an independent contractor and not authorized to make any representations on behalf of SCE; and (4) SCE will have no role in resolving any disputes between me, Customer's Authorized Agent, and/or any other third parties. I further authorize all contracts and correspondence to be sent directly to Customer's Authorized Agent specified above. I further authorize Customer's Authorized Agent to request and receive from SCE the customer account information for the SCE account(s) listed in this Application, including billing records, billing history, meter usage date, verification of balances on the account(s), discontinuance notices, and verification of rate and related information, and to schedule any required inspections by SCE at the project site in connection with this OBF Application or the Eligible Program(s). Signature of Customer Date Form of Payment Ip OBF Loan Funds to Customer OBF Loan Funds to Customer's Authorized Agent Payment Release As Customer, I authorize the payment of my OBF Loan Funds to Customer's Authorized Agent specified above, and I understand I will not be receiving the OBF check from SCE. I also understand my release of this payment to Customer's Authorized Agent does not exempt me from the requirements outlined in this OBF Application. I Signature of Customer Date PLEASE MAKE A COPY OF THIS DOCUMENT FOR YOUR RECORDS The OBF Program is funded by California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission. © 2015 Southern California Edison. All copyright and trademark rights reserved. 6/7 7/7 9-10 Energy Management Solutions ATTACHMENT B Incentives Application for Business Customers STEP 1 Get Started STEP 2 Select Your Solutions SEND TO: Southern California Edison, Business Incentives SOUTHERN CALIFORNIA P.O. Box 800, Rosemead, CA 91770-0800 E D I S O N® Fax: 626-633-3243 1 E-mail: Businesslncentives@sce.com A EDISON INTERNATIONAL®Company Questions? 800-736-4777 STEP 3 Submit Completed Application Use your SCE bill to help you complete Refer to the Solutions Directory and your project proposal or contractor invoice Tell us how you want to be paid, then read and sign the following sections: 1 & 2 to complete the appropriate sections: ®Express ®Customized Solutions Solutions Automated Demand Response (Auto -DR) CO� Technology Incentives (Express or Customized) the Terms and Conditions and submit the completed application with required supporting documents. 9 & 10 Victor Johnson 3 & 4 5 & 6 7 & 8 1 Customer Information If you are an SCE customer submitting a project on your own, complete part A. If you are a Customer's Authorized Agent, such as a contractor or equipment installer, submitting this application on behalf of the customer, complete both parts A and B. A. Customer (applicant) [Submitting a project on your own] Company/Business Name Contact Name Title Company/Business Mailing Address City State ZIP Contact Phone Number Contact E-mail Address B. Customer's Authorized Agent [Such as a contractor or equipment installer, submitting application on behalf of the customer] Customer's Authorized Agent Business Name Contact Name Customer's Authorized Agent Mailing Address City State ZIP Customer's Authorized Agent Phone Number Customer's Authorized AgentE-mailAddress 2 Project Site Information This section is for a single project site where qualifying solutions will be installed. • Please refer to your SCE bill for your Service Account Number and to the Solutions Directory for Building Type Code. For more than one project site, check the Multiple Site Project box below, skip all sections through Section 8, including this one, and complete the Multiple Site/Solution Worksheet. Then return to this application and sign and complete Sections 9 and 10. Submit the Multiple Site/Solution Worksheet and all required documents with your completed application. Building ZIP Type Year Total Sq Ft/ Site Contact Site Contact Project Name SCE Service Account Number Service Account Address Code Code Built Facility Site Contact Name Phone Number E-mail Address EXAMPLE Store #1234 [—]-- 3 - 000 - 0000 - 00 111 Main St 91001 33 1950 10,000 Victor Johnson 626-555-0901 vjohnson@tdi.com 3------------ Multiple Site Project NEXT PAGE Project# SCE Engineer SCE Account Rep Partnership (if applicable) Notes/Additional Info TR • • • 9-11 Express Installed Express Pending Customized Auto -DR Express TI Auto -DR Customized TI DSM Opportunity ID 3 ®Express Solutions: Existing Equipment Location and Description If your project includes Express Solutions, complete the tables below. • To avoid processing delays and ensure all eligible incentives are approved, please provide exact and detailed equipment location and description information. • Use a separate line for each solution located in a different location at the project site (e.g., warehouse, parking lot, room #). • To obtain a Description of Existing Equipment, refer to either your project proposal or contractor invoice. i For more than four solutions or solution locations, check the Multiple Solutions box below, skip this section and Section 4, and complete the Multiple Site/Solution Worksheet for Express Solutions. Exact and Detailed Location of Existing Equipment EXAMPLE Line # I Office roof, NE corner of building (Exact and detailed location necessary) 1 2 3 4 ❑ Multiple Solutions (more than four) Quantity Description of Existing Equipment 1 1 Air handler unit #4 4 2013-2014 Express Solutions: New Equipment Incentive Calculations NEW Your project may be eligible for a Comprehensive Project Bonus. See cover sheet for eligibility requirements. Refer to the Solutions Directory (www.sce.com/nrc/ems/download/solutionsdirectory.pdf) for Solution Codes, Solution Descriptions, Incentive Amounts, and Program and Equipment Eligibility Requirements. Read and answer the eligibility requirements and questions before proceeding with your equipment purchase. Then calculate your incentive total. For more than four solutions, check the Multiple Solutions box below, skip this section, and complete the Multiple Site/Solution Worksheet for Express Solutions. Express Solutions Calculation Date of Number of Incentive Has the solution Actual or Unit of Measure Units Installed $ Per Unit Incentive Total already been Proposed (e.g., lamp, Solution Code Solution Description Exact and Detailed Location of New Solution installed? Installation fixture, sq ft, hp) A x B = C Line # From Sec 3 EXAMPLE AC -97352 Variable -frequency drives for HVAC fans Office roof, NE corner of building YES* ❑X NO ❑ 8/21/2013 HP 1 $80 $80 1 YES* ❑ NO ❑ 2 YES* ❑ NO ❑ 3 YES* ❑ NO ❑ 4 YES* ❑ NO ❑ ❑ Multiple Solutions (more than four) TOTAL ESTIMATED EXPRESS INSTALLED INCENTIVE *If YES, please include/submit the following: 1) Invoice receipt(s) and 2) Specification sheet(s) TOTAL ESTIMATED EXPRESS PENDING INCENTIVE for each installed solution(s) from vendor. TOTAL ESTIMATED EXPRESS PENDING PROJECT COST r $ $ $ NEXT PAGE E•'i[11J If you are submitting this application for Express Solutions incentives only, stop here. Go to Sections 9 and 10 to sign and complete this application. 9-12 EE 2013-2014 Customized Solutions NEW Your project may be eligible for a Comprehensive Project Bonus. See cover sheet for eligibility requirements. If your project includes Customized Solutions, complete the tables below. • Refer to the Solutions Directory (www.sce.com/nrc/ems/download/solutionsdirectory.pdf) for Solution Codes, Solution Descriptions, and Program and Equipment Eligibility requirements. Your Customized Solutions project must be reviewed and approved by SCE before proceeding with the removal of the existing equipment and installation of the new equipment. This application is the first step for SCE's review and approval of your project. • To obtain a Description of Existing Equipment refer to either your project proposal or facility audit. • As mandated by the California Public Utilities Commission (CPUC), effective April 17, 2012, SCE has modified equipment baseline assumptions. See cover sheet for requirements. ❑ Multiple Solutions (more than four) 6 ®Customized Solutions: Energy Savings and On -Peak Demand Reduction For the corresponding line from Section 5, refer to your energy savings and/or on -peak demand reduction calculations from your project proposal to complete the table below. • Attach quote for estimated equipment installation costs and equipment specifications from your contractor/installation vendor and energy savings calculations with your completed application. Estimated Energy Savings Estimated On -Peak Demand Reduction Estimated Installed On -Peak On -peak Demand Baseline Usage Installed Usage Energy Savings Incentive Rate Energy Baseline On -Peak On -Peak Demand Incentive Rate Reduction Incentive (kWh/yr) (kWh/yr) (kWh/yr) ($/kWh) Incentive (S) Demand (kW) Demand (kW) Reduction (kW) ($/kW) Incentive (S) Total A — B = C X D = E7 A — B = C X D = E2 E7 + E2 Line # From EXAMPLE Sec 150,000 97,000 53,000 $0.09 $4,770 25 24 1 $100 $100 $4,870 1 2 3 4 TOTAL TOTAL TOTAL $ TOTAL $ NEXT PAGE TOTAL ESTIMATED CUSTOMIZED SOLUTIONS PROJECT COST $ oIf you are not applying for Auto -DR Express or Customized Technology Incentives, stop here. Go to Sections 9 and 10 to sign and complete this application. 9-13 To apply for Auto -DR Express or Customized Technology Incentives, provide the following along with your completed application: Auto -DR Technology Incentives are capped at $300 per kW reduced and cannot exceed the actual • A third -party project proposal or scope of work showing total estimated project cost and load and reasonable cost forth e purchase and installation of the qualifying equipment. Facility maximum reduction through Automated Demand Response. Project proposals must include detailed kW (demand) will be based on the most recent 12 months of usage. Contact your SCE Account calculations for DR load (kW) reductions and detailed costs for labor, installation, and equipment. Representative for assistance in selecting an appropriate qualifying DR program that complements • A controls system schematic or diagram. your business. Auto -DR Express Technology Incentives Oa If your project also includes Auto -DR Customized TI solutions, skip this section, and proceed to Section S. Auto -DR Express Technology Incentives are based on predetermined peak demand reductions. Refer to the Solutions Directory (www.sce.com/applicationandtools) for the Solution Codes, Solution Descriptions, Strategies, and predetermined kW reductions. For Auto -DR Express solutions, you cannot receive incentives for more than one DR solution for the same technology type (e.g., lighting controls or HVAC controls). Estimated Project Cost Peak kW Labor Installation ($) Equipment ($) Project Cost ($) Solution Code Solution Description Strategy Reduction A + B C EXAMPLE Line # DR -78293 Lighting Controls Lighting Controls -20% Dimming 6.1 $ 2,000 $ 2,000 $ 4,000 1 2 3 4 FACILITY MAXIMUM kW TOTAL PEAK kW REDUCTION TOTAL ESTIMATED PROJECT COST $ ❑ Check here if you are currently enrolled in a DR Program(s) that qualifies for Auto -DR Technology Incentives AUTO -DR EXPRESS ESTIMATED PROJECT COMPLETION DATE MAX INCENTIVETOTAL $ (Lesser of $300 XTotal Peak kW Reduction or Estimated Project Cost) $Auto -DR Customized Technology Incentives O Refer to your project proposal to complete the table below. Auto -DR Customized Technology Incentives are based on a calculated approach to peak demand reduction. For solutions listed as Auto -DR Express TI, use an equivalent Auto -DR Customized TI solution code (e.g., Lighting Controls/Switching or HVAC Controls). For more than four solutions, check the Multiple Solutions box below, skip this section and complete the Multiple Site/Solution Worksheet for Auto -DR Customized TI (www.sce.com/applicationandtools). Solution Code EXAMPLE Line # DR -98812 1 2 3 4 Solution Description Chiller Controls Strategy Limit Chiller Electric Demand Estimated Project Cost Peak kW Labor Installation ($) Equipment ($) Project Cost ($) Reduction A + B C 6.1 1 $ 2,000 1 $ 2,000 1 $ 4,000 'Multiple Solutions (more than four) FACILITY MAXIMUM kW TOTAL PEAK kW REDUCTION TOTAL ESTIMATED PROJECT COST ' $ ❑ ❑ Check here if you are currently enrolled in a DR Program(s) that qualifies for Auto -DR Technology Incentives AUTO -DR CUSTOMIZED ESTIMATED PROJECT COMPLETION DATE NEXT PAGE Are you considering or planning on installing a distributed generation technology such as a Photovoltaic MAX INCENTIVETOTAL $ (solar) system at this site(s) within the next 18 months? ❑ Yes ❑ No (Lesser of $300 XTotal Peak kW Reduction or Estimated Project Cost) Are you considering or planning on completing an Energy Efficiency project at this site(s) within the next 18 months? Yes ❑ No 9-14 9 Payment Information and Customer Acknowledgement Complete the section below to let us know how you would like to be paid. A. FORM OF PAYMENT (Please check one) Incentive Check to Customer [Complete B and C.] Utility Bill Credit to Customer [Complete C and D.] Incentive Check to third -party Payee (e.g., contractor) [Complete B, C, and E. Note: Provide third -party Payee information in Section C.] B. PAYEE INFORMATION F1 Check here if Payee Information is same as Section 1, Part A (if Payee Customer) or Part B (if Payee is Customer's Authorized Agent). Complete below if Payee Name should be different on the Incentive check. Attention To (Name to be printed Payee-Customer/Business Name (Limit34 characters) on check. Use only if required.) Title Company/Business Mailinq Address City State ZIP Contact Phone Number Contact E-mail Address I understand that incentives may be subject to income tax, and if greater than $600 could be reported to the IRS unless the payee (i.e., the party receiving the incentive) is exempt. As part of a completed application package, the payee will be required to submit to SCE a complete W-9 (Request for Taxpayer Identification Number and Certification) and CA 590 (California Withholding Exemption Certificate) to confirm their tax status. SCE could report incentives as income on IRS form 1099 based on tax status reflected on W-9 and CA -590. I understand that payees should consult their tax advisor concerning the taxability of incentives, and that SCE is not responsible for any taxes that may be imposed due to program incentive payment(s). D. UTILITY BILL CREDIT (IF YOU PREFER PAYMENT IN THE FORM OF A BILL CREDIT TO THE CUSTOMER OF RECORD, COMPLETE THIS SECTION) Service Account Number Customer Account Number 3-F-11:11:1-11-11:11:1-1:11:1 2-[:][:]- ❑❑❑ - ❑❑❑❑ C. PAYEE TAX IDENTIFICATION TYPE (Please check one) Federal Tax ID/Employer ID Number [EINI Social Security Number [SSNI Identification Number PAYEE TAX STATUS (Please check one) F1 Corporation/LLC Individual/Sole Proprietor/General Partnership 1-1 Tax-exempt/Non-profit Exempt Reason E. PAYMENT RELEASE AUTHORIZATION (PLEASE COMPLETE THIS SECTION IF A CUSTOMER'S AUTHORIZED AGENT IS TO RECEIVE THE CHECK) As the Customer, I am authorizing this payment of my incentive to the Payee named in Section 9, Part B, above, and I understand that I will not be receiving the incentive check from SCE. I also understand that my release of this payment to the Payee does not exempt me from the requirements outlined in the Application package. Customer Name (Please Print) Signature Title Date Application Check List — Required documentation to be submitted with your completed application. Refer to the Solutions Directory for an expanded Application Check List (www.sce.com/applicationandtools). 1. Payees (Section 9, Part B of this application) must submit a completed W-9 and CA -590. If Payee is an SCE Partnership partner, only submit a completed W-9. 2. Customer's Authorized Agents (Section 1, Part B of this application) must submit a completed Customer's Authorized Agent Agreement (learn more at www.sce.com/contractor). 3. For all Projects/Solutions (Express, Customized, and Auto -DR Technology Incentives), you must submit: Tax ID Information — For the party receiving incentives ("Payee"). Proof of Payment — Submit either an Invoice/Store Receipt, a Purchase Order, or a Lease Agreement. See below for what each must include. Spec Sheets — For each solution. Invoice/Store Receipt must include: Purchase Order must include: Lease Agreement must include: Date of Purchase Date of order or delivery Lease start date and length Full description of new equipment Payment terms Payment terms A line item that subtracts SCE's incentives amount from the Total Project Costs, when Customer's (Section 1A, Part A) Customer's (Section 1A, Part A) the Payee is the Customer's Authorized Agent signature signature Payment status (paid or payment terms) 4. For Customized Solutions, you must also provide: Calculations in the original, editable file format — Do not include hand written calculations. Note: Calculations are automatically attached when using the Online Application's Solutions Calculation Wizard. For a list of preferred tools for calculations, go to www.sce.com/customized-solutions 5. Additional attachments required for some solutions (e.g., air compressors for process and pumping, lighting, PC software, etc.). Review the eligibility requirements carefully. NEXT PAGE Contact your SCE Account Representative, or call (800) 736-4777 if you have questions or need assistance. 9-15 10 Applicant Agreement Regarding Program Terms and Conditions CA J rr 0 Y rr 0 t— Z W v 0 D _N S U. Y 13 - LU W Y Q W N Q Q J d I, the Applicant (and Customer's Authorized Agent of the Applicant, if applicable), hereby agree (the "Agreement') to the following terms and conditions to my participation in: (1) Express Solutions Program, (2) Customized Solutions Program, and/or (3) Automated Demand Response (Auto -DR) Technology Incentives Program (the "Programs"). The Programs are identified and further described in the appropriate attachments to the Application, and also in the 2013-2014 Express Procedures Manual for Business (www.sce.com/express-solutions), the 2013-2014 Statewide Customized Offering Procedures Manual for Business (www.sce.com/customized-solutions), and the 2012 Auto -DR Technology Incentives Program Guidelines (www.sce.com/autodr), as applicable. 1.e. Incorporation by Reference: The Application (togetherwith all applicable attachments) is hereby incorporated by reference into, and made a part of, this Agreement. 1.b. Incorporation by Reference—SCE Partnerships (if applicable). To the extent Applicant is a participant in an SCE 2013-2014 Local Government or Institutional Partnership, the following shall apply: In addition to the Application, the executed agreement to jointly deliver the applicable 2013-2014 Energy Efficiency Partnership Program between Applicant and SCE (and other California utilities where applicable) (the "Partnership Agreement") shall also be incorporated into this Agreement by this reference. Should a conflict exist between the terms and conditions of this Agreement and the Partnership Agreement (including but not limited to Section 10 of this Agreement), then the terms and conditions of the Partnership Agreement shall control with respect to such conflict 2 Limitation on Funding Availability: Each Program has limited funding and is offered on a first-come, first-served basis until funding is depleted or the Program is terminated, whichever comes first. I further understand that submission of this Application is not a guarantee of payment by SCE, nor is it a guarantee of fund availability. Upon SCE's approval of this Application and SCE's execution of a Program project agreement, if applicable to the requested Program, incentive funds will be reserved by SCE; however, payment of any incentive is subjectto post -installation performance verification. 3. Changes to Program: Funding and conditions of each Program are subject to the jurisdiction of the California Public Utilities Commission ("CPUC"), and shall be subjectto such changes or modifications as the CPUC may, from time to time, direct in the exercise of its jurisdiction. I understand that if a Program is modified in any way or terminated by order of any government entity, then this Agreement shall be revised or terminated consistentwith that order. In addition, SCE may suspend or terminate any agreement related to a Program without cause (and without prior written notice) if SCE determines suspension or termination of the agreement is necessary in order to make changes to the related Program or if SCE is ordered by the CPUC to modify or discontinue a Program and/or any agreements related to a Program. I agree that SCE will not be liable for any damages or compensation of any kind that may result from the changes described in this paragraph 3. 4. Right of Assignment: SCE may assign any agreement related to my participation in a Program, in whole or in part, or its rights and obligations hereunder, directly or indirectly, by operation of law or otherwise, without my prior written consent, provided SCE remains obligated for payments incurred prior to the assignment. I may not assign this Application, in whole or in part, or my rights and obligations hereunder, directly or indirectly, by operation of law or otherwise withoutthe prior written consent of SCE. 5. Site Access Requirements: The Program(s) I select may require installations, audits, inspections, measurements ofthe performance of the project measure(s) (referred to as "solution(s)"), and/or verification of installation of solutions. Therefore, I agree to provide reasonable access to the project site(s) for these purposes to SCE and/or its agents, assigns, or contractors and the CPUC and/or its agents or assigns. 6. Authorized Services: I understand that SCE employees, contractors and/or agents are authorized to provide only the services described in this Application for the Programs. SCE assumes no responsibility for any services, installations, improvements or equipment offered or provided to me by an SCE employee, contractor or agent other than those specified in this Application or that have not been authorized by SCE. 7. Release and Use of Information: I authorize SCE to release my contact and other relevant information to SCE's employees, contractors and/or agents for purposes related to my participation in the Program(s). I further authorize SCE's employees, contractors and agents to contact me with regard to the initiation, performance, and/or verification of any of the terms and conditions of the applicable Program(s). B. Calculation of Energy Savings: SCE will not pay incentives for any energy savings in excess of the actual annual amount of my electricity usage at each SCE service account for which incentives are requested. MUST BE COMPLETED BY APPLICANT 9. Equipment Eligible for Incentives: Energy savings and demand reduction resulting from the project must be above and beyond baseline energy performance, which include state -mandated codes, federal -mandated codes, industry -accepted performance standards or other baseline energy performance standards as determined by SCE. Refurbished and/or leased equipment is not eligible for Program incentives. Specific restrictions may apply to each energy efficiency solution, as outlined in the instructions and attached Application forms. 10. Method for Calculation of Incentive Payments: I understand that SCE pays up to 50% of the project costfor Customized Solutions, and up to 100% of the equipment costfor Express Solutions. For Auto -DR Technology Incentives, SCE pays up to $300 per kW reduced (notto exceed 100% of the actual and reasonable cost for the purchase and installation of qualifying equipment) in accordance with the 2012 Auto -DR Technology Incentives Program Guidelines. Customized calculations will be in accordance with the 2013-2014 Statewide Customized Offering Procedures Manual for Business (www.sce.com/customized_ solutions). I further understand thatthe total calendaryear incentive payments to an individual SCE customer cannot exceed $3 million for Customized Solutions and $4.5 million for Express Solutions per program cycle 2013-2014. Auto -DR Technology Incentives payments to an individual SCE customer cannot exceed $5 million per program cycle 2012-2014. 11. Limitations on Incentive Payments: To be eligible for Program incentives, I understand that if I am not in good standing on all of my service accounts and contracts with SCE or do not meet the program requirements, SCE may hold my incentives or apply them towards amounts I owe to SCE. I agree that I have not and will not apply for or receive rebates, incentives or services for the solution(s) covered by this Application from any other utility, state or local program funded by the Public Goods Charge (PGC). I further agree that I will not apply or receive rebates, incentives, or services for the incentive(s) covered by this Application in an amount greater than the total cost ofthe solution(s). Because the Programs are funded by California utility ratepayers and administered by SCE under the auspices of the CPUC, I may face adverse consequences (i.e., a requirement that I return payments that were made to me or a restriction on my eligibility to participate in other programs) if I violate these restrictions. 12. Estimated Savings May Not Equal Actual Savings: I understand that all energy savings, incentives, and installed costs provided by SCE during the Program Application process are estimates only, and are subjectto change based on SCE review and approval and that I am solely responsible forthe selection, purchase, installation and ownership of the equipment and services under the Programs. 13. Energy Benefits: As a qualified SCE customer, I certify that the indicated energy savings products are for use in my project site and notfor resale. I agree to provide SCE with documents establishing paid proof of purchase and installation of the solutions applied for in this Application. I understand the incentive payments are based on related energy benefits over the life of the product. I agree that if (a) I do not provide Southern California Edison with 100% of the related energy benefits specified in the rebate form for the life of the product or for a period of five (5) years from receipt of rebate, whichever is less, or (b) I cease to be a customer of SCE during said time period, I shall refund a prorated amount of rebate dollars to SCE based on the actual period oftime for which I provided the related energy benefits as an electric customer of SCE. 14. Risk Allocation: I UNDERSTAND THAT SCE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING MANUFACTURERS, DEALERS, CONTRACTORS, MATERIALS OR WORKMANSHIP, OR REGARDING SELECTION OR QUALIFICATION OF CUSTOMER'S AUTHORIZED AGENTS. I ALSO UNDERSTAND, AND HAVE CAUSED MY AUTHORIZED AGENT (IF ANY) TO UNDERSTAND, THAT SCE MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, USE, OR APPLICATION OF THE PRODUCTS OR SOLUTIONS. I AGREE TO INDEMNIFY, DEFEND AND HOLD HARMLESS, AND HEREBY RELEASE SCE, ITS AFFILIATES, SUBSIDIARIES, PARENT COMPANY, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES OF EACH OF THEM, FROM AND AGAINST ALL CLAIMS, DEMANDS, LOSSES, DAMAGES, COSTS, EXPENSES, AND LIABILITY (LEGAL, CONTRACTUAL, OR OTHERWISE), WHICH ARISE FROM OR ARE IN ANY WAY CONNECTED WITH ANY OF THE PROGRAMS. 15. 1 hereby acknowledge the following: ❑ By checking this box, I confirm that I will/have used a license contractor, where applicable, and will/have obtained all required permits for this installation. 16. 1 hereby acknowledge the following (check ONLY ONE of the following options): I am SELF-ADMINISTERING this project. Upon project approval, if applicable to requested Program(s), I intend to enter into an agreement with SCE for delivery of energy savings/demand reduction resulting from the installation of energy efficiency and demand response solutions at the project site listed in Section 2 of this Application. have entered into a contract with the Customer's Authorized Agent indicated beIowforthe installation of energy efficiency and/or demand response solutions at the projects ite listed in Section 2 of this Application. Upon project approval, if applicable to requested Program(s), my Customer's Authorized Agent is authorized to enter into the necessary agreements with SCE for delivery of energy savings and/or demand reduction resulting from the installation of these solutions atthe project site. I understand that: (i) SCE makes no warranty or representation aboutthe Customer's Authorized Agent's qualifications; (ii) I am solely responsible for selecting the Customer's Authorized Agent to implementthe project on my behalf; (iii)that the Customer's Authorized Agent is an independent contractor and not authorized to make any representation on behalf of SCE; and (iv) that SCE will have no role in resolving any disputes between me, the Customer's Authorized Agent and/or anyotherthird parties. I further authorize all contracts and correspondence to be sent directly to the Customer's Authorized Agent specified below. 17. Verification and Certification: I affirm that I am authorized to enter into this Agreement and that I have read, understand, and agree to all of the specific terms, conditions and other requirements and restrictions setforth in this Agreementfor each of the Programs selected in this Application for my participation. I certify that the information I have provided in the Application that accompanies this Agreement is true and correct, and the projects) for which I am requesting Program funding meet(s) all applicable requirements asset forth in this Application. Furthermore, I understand and agree that I meet all eligibility requirements for participation in the Program(s) for which I am applying. SCE reserves the right to request additional information to verify Applicanfs eligibiIityto participate in the Program(s). Customer Name (Please Print) Signature Title Date Customer's Authorized Agent Name (Please Print) Signature Title Date THE END F 9-16 Facsimile Signature: Copies of Applicant's signed signature page may be transmitted to SCE by facsimile or other electronic means. Copies of the signature pages so transmitted may be used for the purpose of enforcing the terms of this Agreement as though they were originals. NR -40948-0213