David Vaught, Director Pat Quinn, Governor

1. The Illinois Energy Office welcomes you to the Illinois Energy Now Webinar. We’ll be with you in just a moment. David Vaught, Director Pat Quinn, Governor

2. Illinois Energy Now Webinarfor thePublic Sector Energy Efficiency Standard and Custom Incentive Programs David Vaught, Director Pat Quinn, Governor

3. Agenda • Illinois Energy Now - Programs & Funding: • Program Year 4 Summary • Program Year 5 Updates • Program Year 5 Application Process • PSEE Programs • Q&A: Please type your questions to us • Speakers – • Andrea Reiff – IEN Program Manager • Agnes Mrozowski – Asst. Deputy Director

4. Illinois Energy NowPrograms & Funding

5. Illinois Energy Now Public Sector Energy Efficiency What is Illinois Energy Now? In 2007, legislation amended the Illinois Public Utilities Act and required that the State’s largest utility providers and the Department of Commerce & Economic Opportunity (DCEO) develop a portfolio of electric energy efficiency programs to meet legislative goals that reduce energy demand. In 2009, legislation was passed to include natural gas energy efficiency programs to meet legislative reduction goals. Illinois Energy Now is the portfolio of programs the Department of Commerce & Economic Opportunity offers to administer the electric and natural gas incentives for the public sector. 2012-2013Public Sector Energy Efficiency Programs combinenatural gas incentives with the former Public Sector Electric Efficiency Programs.

6. PROGRAM STRUCTURE • Local Governments • Municipalities • Townships & County facilities • Special units of Local Government • Library & Park Districts • Public Safety • Water Treatment • State and Federal agencies • Public Schools • K-12 Public Schools • Community Colleges • Public Universities DCEO Public Sector Electric & Nat. Gas Utilities • Privately owned businesses • Privately owned industrial & commercial facilities • Private Schools • Private K-12 Schools • Private Colleges • Private Universities • Not-for-profit • Museums • Foundations • Trade Organizations • Residential

7. Estimated DCEO Budget for Illinois Energy Now Portfolio of Programs

8. ILLINOIS ENERGY NOW Public Sector Programs • Standard: specific incentives linked to easily quantifiable, individual efficiency measures such as lighting, motors, chillers, etc. • Custom: an incentive $.12 /kWh or $1.50 /therms saved for measures that are not standard New Construction: new construction funding for buildings built beyond code Retro-Commissioning: identify and implement low cost tune-ups and adjustments to existing building operating systems

9. 2012-2013 Program Year PSEE Standard and Custom Estimated Funding Available Year 5 funds are available for projects completed 6/1/12 – 5/15/13.

10. Program Year 4 (PY4) SummaryPublic Sector Energy Efficiency Programs

11. PY 4 Preliminary Results • Received 859 Public Sector applications* • Electric efficiency projects - 734 • Natural gas efficiency projects – 125 • Elec. Energy Savings 159,328,142 kWh’s • Nat Gas Energy Savings 4,521,516 therms • Anticipate number of applications to continue to grow especially in the natural gas territories as budgets continue to grow. *Not including projects extended to next year or cancelled

12. PY4’s Successes • Aggregation Pilot Program • DCEO Trade Ally Program • Received 200 more applications than PY3 • Strengthened partnerships with Universities, Community Colleges, and State Associations • Strong potential for achieving annual energy savings goals.

13. PY4Applications by Territory

14. Public Sector Energy Efficiency ProgramPY4 Summary • DCEO received 859 public sector applications through the 4th quarter of PY4, an increase of over 200 applications from PY3 • 91 projects were postponed until PY5 or cancelled

15. Boiler Tune-up • PY 4 Highlights • ~40 projects, achieved energy savings of 1.8 million therms (more than double the goal of 826,000) • 327 boiler tune-ups; 1,164 steam traps; 2.6 miles of pipe insulation • PY 5 Changes • pilot program becoming permanent • offered all year • Status • Open – Applications available: boiler@uic.edu • Contact: Stefano Galiasso, Energy Resources Center, UIC

16. www.sedac.org • Partners: U of Illinois, SEDAC Design Assistance Experts and Energy Service Providers • Assist public sector/private building owners to identify opportunities to save energy and money • Provide energy audits, analysis and design assistance including: • Design review and/or site inspection • Computer modeling of base case and alternatives with ECMs • Energy savings analysis • Life cycle cost analysis • Final report with recommendations • Retro-Commissioning

17. Percent Projects by Public Category • More than 90 percent of the projects are targeted to local governments, K-12 schools, and community colleges.

18. Electric Percent Savings by Project Type • Standard lighting and other Custom projects are the most common project types.

19. Nat Gas Percent Savings by Project Type • Custom other and Custom HVAC are the most common project types.

20. Program Year 5 (PY5) Updates 2012-2013Public Sector Energy Efficiency Programs

21. Program Eligibility Determined by Electric and/or Natural Gas Service Area • Where the public sector facility is located in Ameren Illinois or ComEd electric service areas, facility is eligible for electric efficiency incentives for those measures that produce electric savings. Measures include; lighting, electric HVAC equipment, motors, electric kitchen equipment.Where the public sector facility is located in Ameren Illinois, Nicor Gas, Peoples Gas or North Shore Gas natural gas service areas, facility is eligible for natural gas efficiency incentives for those measures that produce natural gas savings. Measures include; natural gas HVAC equipment, natural gas water heaters, natural gas kitchen equipment.Where the public sector facility is located in both a participating electric service area and natural gas service area, facility is eligible for both electric and natural gas efficiency incentives.

22. Eligibility and Funding Availability www.illinoisenergy.org DCEO ILLINOIS ENERGY NOW PUBLIC SECTOR FUNDING AVAILABILITY (as of June 1, 2012)

23. Program Year 5 (PY5) Updates • New URL: ilenergynow.org • New Application Forms for Lighting • Moved special rate for Exterior LED and Induction lights to Standard • Added Standard rates for LED and Induction Wall-packs • Increased boiler incentives and restructured categories • Increased Custom Incentive for natural gas to $1.50 per therm • Custom Incentive Worksheet revisions

24. Standard Incentive ProgramLighting B-2 thru B-9 • Added text to clarify Retrofit from T-12 to T-8 versus Lamp Only from T-8 to reduced wattage T-8 • Added a 2nd Lighting Incentive Worksheet, now B-2 and B-3 • Added Standard Incentive for LED and Induction Wall-Packs to B-2 • Moved Exterior LED and Induction special rate of $0.30 per kWh saved to Standard Incentive B-3 • Added more lines for New High Performance T-8 and T-5 Fixtures • Added 2 Light Surveys • B-4 Retrofit Fixtures • B-5 New Fixtures • Lighting Specifications for LED reference Design Lights Consortium specifications and qualified products list posted at www.designlights.org

25. Standard Incentive ProgramHVAC and Water Heaters B-10 to B-13 • Increased boiler incentives • Changed “Size Categories” • Increased the size of boilers eligible for Standard Program to 5 MMBtuh

26. Standard Incentive ProgramMotors – No Changes • Incentives available for 25 hp to 200 hp replacement motors where existing motor would have been rewound • 25 hp to 100 hp motors incentive = $4.50 per hp • 125 hp to 200 hp motors incentive = $4.00 per hp • VSD standard incentive no longer limited to HVAC equipment • VSD for existing motors ≤ 200 hp incentive = $92 per hp • VSD for water treatment facilities may be eligible for a custom incentive • VSD and Motors > 200 hp may be eligible for a custom incentive

27. Standard Incentive ProgramKitchen B-15 thru B-18 • No significant changes • Pre-Rinse Spray Valves incentive = $32.00 each • Low Flow Faucet Aerator incentive = $8.00 each

28. Custom Incentive Program • For those electric and/or natural gas efficiency measures not listed in Standard Incentive Program • Electric Custom Incentive = $0.12 per annual kWh savings • Exterior LED or Induction Lighting Incentive = $0.30 per annual kWh savings is no longer Custom, now listed on Standard Incentive Form B-3 • Natural Gas Custom Incentive = $1.50 per annual therms savings • Simple payback must be 1 to 7 years • Some fields autocalculate

29. Application Review • Section 1: General Information must be completed for project at Pre-Approval and Final Application • Section 2: Building/Facility Information must be submitted for each building along with corresponding utility information • Section 3: Application Certification must be completed for project at Pre-Approval and Final Application • Application CheckList: use for Pre-Approval and Final • Standard Incentive Worksheets: submit one for each building and indicate building name and address • Appendix C: Custom Incentive Program Worksheet includes measures with both electric and natural gas savings (where entity eligible for both) • Applicant may receive 2 sets of payment documents if project and facility eligible for both electric and natural gas incentives

30. Approval and Payments <$10K • Incentive Payments <$10,000 • DCEO reviews and approves Pre-Approval Application then issues 1-page Notice to Proceed • After project complete, Applicant submits Final Application • DCEO reviews and approves then issues 3-page payment documents that comprise the Small Rebate Agreement • Applicant returns 3-page Small Rebate Agreement • DCEO submits documents to the Office of the Illinois Comptroller. Payment issued by check or electronic funds transfer

31. Approval and Payments $10K-$50K • Incentive Payments ≥ $10,000 and ≤ $50,000 • DCEO reviews and approves Pre-Approval Application then issues Multi-page Large Rebate Agreement • After project complete, Applicant re-submits entire Large Rebate Agreement per Checklist (includes Pre-Approval and Final Application Forms inserted in Attachment B) and Invoices • DCEO reviews and approves then submits Large Rebate Agreement to the Office of the Illinois Comptroller. Payment issued by check or electronic funds transfer

32. Approval and Payments >$50K • Incentive Payments > $50,000 • DCEO reviews and approves Pre-Approval Application and provides Grant Application to Applicant • Applicant completes and returns Grant Application • DCEO issues Applicant Notice of Grant Award • Applicant reviews, signs and returns Notice of Grant Award • DCEO issues executed Grant Agreement • Applicant/Grantee must submit quarterly Financial and Project Status Reports • Financial Status Report and Final Application triggers payment from the Office of the Illinois Comptroller. • Payment issued by check or electronic funds transfer • Applicant/Grantee must submit Final Financial Status Report • DCEO reviews and approves then submits Large Rebate Agreement

33. Status of Guidelines and RFAs • Standard and Custom, New Construction, and Affordable Housing guidelines & applications posted on DCEO website • Retro-commissioning and Public Housing applications available through SEDAC • BITE applications - under review • Public Sector Aggregation applications - under review

34. Building Industry Training & EducationNew Programs Public Sector Implementation Assistance Provide project implementation assistance to potential public sector applicants. The proposed assistance should include technical assistance, capacity building, and support that ensures quality EEPS applications are submitted. Building Operator Certification (BOC) – Returning Veteran’s training pilot recognized by the Clinton Global Initiative. Codes Training – 2012 code training and specialized training for proper sizing for HVAC equipment.

35. Public Sector Program Contacts • New Applications: Sally Agnew, 217.785.5081, sally.agnew@illinois.gov • Local Government: Andrea Reiff, 217.785.0164, andrea.reiff@illinois.gov • Public Schools & Community Colleges: Byron Lloyd, 217.785.3412, byron.lloyd@illinois.gov • State and Federal: Johnny Habibi, 217.785.2772, johnny.habibi@illinois.gov • Public Universities, Retro-commissioning & New Construction: Tom Coe, 217.785.2433, tom.coe@illinois.gov • Low Income: Don Falls, 217.785.1997, don.falls@illinois.gov

36. Key Web Links

37. THANK YOU!!! We would like to thank you for your support of the Public Sector Energy Efficiency Programs and for your assistance in increasing the efficiency of public facilities. David Vaught, Director Pat Quinn, Governor