AbstractThis is the Final Technical Report for DOE's Energy Efficiency and Conservation Block Grant, Award No. DE-EE0003813, submitted by St. Lucie County, FL (prime recipient) and the Solar and Energy Loan Fund (SELF), the program's third-party administrator.
SELF is a 501(c)(3) and a certified Community Development Financial Institution (CDFI). SELF is a community-based lending organization that operates the Clean Energy Loan Program, which focuses on improving the overall quality of life of underserved populations in Florida with an emphasis on home energy improvements and cost-effective renewable energy alternatives. SELF was launched in 2010 through the creation of the non-profit organization and with a $2.9 million Energy Efficiency and Conservation Block (EECBG) grant from the U.S. Department of Energy (DOE). SELF has its main office and headquarters in St. Lucie County, in the region known as the Treasure Coast in East-Central Florida.
Lucie County received funding to create SELF as an independent non-profit institution, outside the control of local government. This was important for SELF to create its identity as an integral part of the business community and to help in its quest to become a Community Development Financial Institution (CDFI). This goal was accomplished in 2013, allowing SELF to focus on its mission to increase energy savings while serving markets that have struggled to find affordable financial assistance.
These homeowners are most impacted by high energy costs. Energy costs are a disproportionate percentage of household expenses for low to moderate income (LMI) households. Electricity costs have been steadily rising in Florida by nearly 5% per year. Housing in LMI neighborhoods often includes older inefficient structures that further exacerbate the problem.
Despite the many available clean energy solutions, most LMI property owners do not have the disposable income or equity in their homes necessary to afford the high upfront cost of energy retrofits. As a result, LMI property owners cannot achieve energy savings nor can they capture the assorted rebates and tax credits available for home energy improvements. Florida has one of the highest energy consumption rates in the country, in part due to high air conditioning use year-round, which has worsened with summer heat waves and record highs. Because the State has the 14th highest electricity rates nationwide, its residents greatly benefit from reducing their monthly energy costs. Reduced energy consumption by making energy-efficient improvements to buildings decreases the “carbon footprint” and provides environmental benefits and social good.
Moreover, if Floridians save money on utilities, they can spend these savings on other things, boosting their local economy. Through its Clean Energy Loan Program, SELF is breaking down these barriers by helping LMI homeowners identify systemic solutions to their rising energy costs (through an energy audit performed by a state-certified energy rater) and then providing favorable financing to enable them to make these recommended home energy improvements.
SELF’s clients are reducing their energy consumption by an average of 15-25%, depending on the types of improvements, and using the energy savings, rebates, and tax credits to help pay off the loans over time. Its clients are also enhancing their quality of life, making much-needed home improvements, and increasing the market value of their properties.
The work performed for the program’s clients is also stimulating much-needed employment and economic development activity in the hardest hit job sector in Florida (i.e., the construction industry) and in geographic areas decimated by the recession and housing market collapse. SELF is a rare institution in that it joins social and financial missions, offering a helping hand to those without the means to find affordable financing. This supports the grant’s original project goal to become a leader and innovator in promoting energy efficiency and renewable energy alternatives, such as solar technologies. SELF has been operational for more than 2 1/2 years and has completed 810 energy audits and closed 246 loans totaling more than $2 million. More than 70 percent of its loan activity has been in CDFI investment areas and 40 percent of SELF’s clients are women.
Additionally, SELF clients have cumulatively reduced their carbon footprint by 950 metric tons, and are taking a small but important individual step toward energy independence. One of the primary goals of the Clean Energy Loan Problem was to increase the number of jobs in a market that has struggled significantly with unemployment, especially in the construction trades. This has been accomplished. Based on ARRA computations, SELF added 84 FTEs in the region during the period from September 2010-September 2013.
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This figure does not fully reflect the hundreds of individuals who received work through SELF projects – including full-time SELF staff members, vendors, and contractor employees. More than 38 contractors have been approved by SELF to provide services. Many have reported a substantial amount of business as a result. One local air-conditioning company congratulated SELF for increasing his business by an estimated 25 percent each year. Increasing the number of sustainable, quality jobs in the region has been one of the truly gratifying aspects of the Clean Energy Loan Program. Authors:; Publication Date: 2014-01-22 Research Org.: St.
Lucie County, FL (SLC)/Solar and Energy Loan Fund (SELF) Sponsoring Org.: USDOE Office of Energy Efficiency and Renewable Energy (EERE) OSTI Identifier: 1115568 Report Number(s): DOE-SLCSELF-03813 DOE Contract Number: EE0003813 Resource Type: Technical Report Country of Publication: United States Language: English Subject: 14 SOLAR ENERGY; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 99 GENERAL AND MISCELLANEOUS; energy efficiency; energy conservation; CDFI; low-interest loans; financing; revolving loan fund. The Greater Cincinnati Energy Alliance (Energy Alliance) is a nonprofit economic development agency dedicated to helping Greater Cincinnati and Northern Kentucky communities reduce energy consumption. The Energy Alliance has launched programs to educate homeowners, commercial property owners, and nonprofit organizations about energy efficiency opportunities they can use to drive energy use reductions and financial savings, while extending significant focus to creating/retaining jobs through these programs. The mission of the Energy Alliance is based on the premise that investment in energy efficiency can lead to transformative economic development in a region. With support from seven municipalities, the Energy Alliance began operation in early 2010 and has been among the fastest growing nonprofit organizations in the Greater Cincinnati/Northern Kentucky area.
The Energy Alliance offers two programs endorsed by the Department of Energy: the Home Performance with ENERGY STAR® Program for homeowners and the Better Buildings Performance Program for commercial entities. Both programs couple expert guidance, project management, and education in energy efficiency best practices with incentives and innovative energy efficiency financing to help building owners effectively invest in the energy efficiency, comfort, health, longevity, and environmental impact of their residential or commercial buildings. The Energy Alliance has raised over $23 million of public and private capital to build a robust market for energy efficiency investment.
Of the $23 million, $17 million was a direct grant from the Department of Energy Better Buildings Neighborhood Program (BBNP). The organization’s investments in energy efficiency projects in the residential and commercial sector have led to well over $50 million in direct economic activity and created over 375,000 hours of labor created or retained.
In addition, over 250 workers have been trained through the Building Performance Training Center, a program that was developed and funded by the Energy Alliance and housed at Cincinnati State Technical and Community College. Nearly 100 residential and commercial contractors currently participate in the Energy Alliance’s two major programs, which have together served over 2,800 residential and 100 commercial customers. Additionally, the Energy Alliance established loan programs for homeowners, nonprofits and commercial businesses. The GC-HELP program was established to provide up to ten year low interest, unsecured loans to homeowners to cover the energy efficiency products they purchased through the Energy Alliance approved contractor base. To date the Energy Alliance has financed over $1 million in energy efficiency loans for homeowners, without any loans written off.
The nonprofit business community is offered five year, fixed-interest rate loans through the Building Communities Loan Fund of $250,000. Additionally, the Energy Alliance has developed GC-PACE, a commercial financing tool that enables buildings owners to finance their energy upgrades through voluntary property assessments deploying low-interest extended-term capital from the bond market. The Energy Alliance and its partners are actively evaluating additional market-based financing solutions. When the Toledo Lucas County Port Authority (TLCPA) filed for the Department of Energy EECBG grant in late 2009, it was part of a strategic and Board backed objective to expand the organization’s economic development and financing programs into alternative energy and energy efficiency. This plan was filed with the knowledge and support of the areas key economic development agencies. The City of Toledo was also a key partner with the Mayor designating a committee to develop a Strategic Energy Policy for the City. This would later give rise to a Community Sustainability Strategic Plan for Toledo, Lucas County and the surrounding region with energy efficiency as a key pillar.
When the TLCPA signed the grant documents with the DOE in June of 2010, the geographic area was severely distressed economically, in the early stages of a recovery from over a 30% drop in business activity and high unemployment. The TLCPA and its partners began identifying potential project areas well before the filing of the application, continuing to work diligently before the formal award and signing of the grant documents. Strong implementation and actions plans and business and financing models were developed and revised throughout the 3 year grant period with the long term goal of creating a sustainable program.
The TLCPA and the City of Toledo demonstrated early leadership by forming the energy improvement district and evaluating buildings under their control including transportation infrastructure and logistics, government services buildings and buildings which housed several for profit and not for profit tenants while completing significant energy efficiency projects that created public awareness and confidence and solid examples of various technologies and energy savings. As was stated in the DOE Award Summary, the undertaking was focused as a commercial program delving into Alternative Energy Utility Districts; what are referred to in Ohio Statute as Energy Special Improvement Districts or ESIDs and what is nationally known as Property Assessed Clean Energy or PACE districts and PACE financing. The project methodology followed the identify, develop, implement, monitor and measure format. These districts began in Toledo and adjoining areas and are expanding to TLCPA’s 28 county financing agency geographic footprint. What began as the Toledo Ohio Advanced Energy Improvement Corporation is now doing business as the Northwest Ohio Advanced Energy Improvement District recognizing it expansion into creating and financing other districts in NW Ohio. The program has been sought out as an advisor by major communities and states in the process of developing similar legislation and programs and has become one of the largest most successful PACE energy improvement and financing districts in the US. The program and the energy district focused on transforming energy use, delivery, conservation and renewable energy as “options of first choice”.
The significant energy savings paid for many of the improvements and created a financially viable program well beyond the grant period. The program has become a model within the State of Ohio and Nationally on how to implement and finance projects in broad energy districts including how to evolve and integrate several financing methodologies. It is a unique utilization of revolving loan funds and energy bond pooling with revenue backing primarily from energy improvement special assessments on commercial properties along with some power purchase agreement (PPA) and loan agreement revenue. The program has also incorporated Qualified Energy Conservation Bonds, State of Ohio Energy Loans (SEP), utility rebates, solar and renewable energy certificates, renewable tax incentives and grants, and owner funded equity as additional program leverage and funding. Other keys to this success have been a continual simplification and refinement of the application and documentation process to make funding available easily and quickly to building owners when they are prepared to commit to the project as well as act as a trusted facilitator and advisor to both building owners and other stakeholders. Taking a flexible and pragmatic approach to project evaluation and implementation that matches time and expense to the complexity of the project has been another key learning. To date the program has closed 3 energy bond issues through the TLCPA sponsored and managed NW Ohio Bond Fund totaling $16.54 million (of which $3.34 million were QECB qualified).
The program has turned over its $3.0 million revolving loan fund twice as construction financing in advance of bond issuance and currently has issued $1.25 million in revolving term loans. The program has $1.66 million of remaining capacity for QECB qualified bonds. The program can issue an additional $13.46 million in energy bonds continuing to utilize its DOE EECBG loan loss reserves. In addition, the program has available $3.6 million of loan loss reserves from the State of Ohio, as an eligible Port Authority, that can back the issuance of an additional $7.2 to $14.4 million of energy bonds. This does not include additional bond capacity is available from the NW Ohio Bond Fund. The program is the master escrow agent for $18 million of loan loss reserves from the State of Ohio for eligible Port Authorities that can be utilized to assist the formation of energy districts and financing programs in major metropolitan areas and regions around the State of Ohio.
Other leveraged funds now total $10 million; placing the total project value completed and financed at over $30 million. In addition that program has generated an active pipeline of projects in various stages that total $25 – $30 million.
Executive Summary In the fall of 2010, the Alabama Department of Economic and Community Affairs (ADECA) launched the Multi-State Model for Catalyzing the National Home Energy Retrofit Market Project (Multi-State Project). This residential energy efficiency pilot program was a collaborative effort among the states of Alabama, Massachusetts, Virginia, and Washington, and was funded by competitive State Energy Program (SEP) awards through the U.S. Department of Energy (DOE). The objective of this project was to catalyze the home energy efficiency retrofit market in select areas within the state of Alabama. To achieve this goal, the project addressed a variety of marketplace elements that did not exist, or were underdeveloped, at the outset of the effort.
These included establishing minimum standards and credentials for marketplace suppliers, educating and engaging homeowners on the benefits of energy efficiency and addressing real or perceived financial barriers to investments in whole-home energy efficiency, among others. The anticipated effect of the activities would be increased market demand for retrofits, improved audit to retrofit conversion rates and growth in overall community understanding of energy efficiency. The four-state collaborative was created with the intent of accelerating market transformation by allowing each state to learn from their peers, each of whom possessed different starting points, resources, and strategies for achieving the overall objective. The four partner states engaged the National Association of State Energy Officials (NASEO) to oversee a project steering committee and to manage the project evaluation for all four states. The steering committee, comprised of key program partners, met on a regular basis to provide overall project coordination, guidance, and progress assessment. While there were variances in program design among the states, there were several common elements: use of the Energy Performance Score (EPS) platform; an audit and home energy rating tool; emphasis on community based coordination and partnerships; marketing and outreach to increase homeowner participation; training for market actors; access to financing options including rebates, incentives, and loan products; and an in depth process evaluation to support continual program improvement and analysis.
In Alabama, Nexus Energy Center operated energy efficiency retrofit programs in Huntsville and Birmingham. In the Huntsville community the AlabamaWISE program was available in five Alabama counties: Cullman, Lawrence, Limestone, Madison, and Morgan. In Birmingham, the program was available to residents in Jefferson and Shelby Counties.
In both communities, the program was similar in terms of program design but tailored marketing and partnerships to address the unique local conditions and population of each community. ADECA and the Southeast Energy Efficiency Alliance (SEEA) provided overall project management services and common resources to the local program administrator Nexus Energy Center, including contracted services for contractor training, quality assurance testing, data collection and reporting, and compliance. The fundamental components of the AlabamaWISE program included a vertical contractor-based business model; comprehensive energy assessments; third-party quality assurance; rebates for installation of energy saving measures; accessible, low-interest financing; targeted and inbound marketing; Energy Performance Score (EPS) tool to engage and educate homeowners; training for auditors, contractors, and real estate professionals; and online resources for education and program enrollment. Program participants were eligible to receive rebates or financing toward the assessments and upgrades to their home provided they reached at least 20 percent deemed or modeled energy savings.
The design of each program focused on addressing several known barriers including: limited homeowner knowledge on the benefits of energy efficiency, lack of financing options, lack of community support for energy efficiency programs, and lack of trained market actors including contractors and real estate professionals. The programs were able to make progress on addressing all of these barriers and were most successful in offering financing options and training market actors. The most challenging barriers proved to be the act of building a market for energy efficiency where none previously existed, convincing homeowners of the value in investing in energy efficiency (and therefore completing retrofits), engaging electric and natural gas utilities to partner on delivery, and achieving the overall project target of 1,365 completed retrofits. The components that proved to be the most valuable to program success were engaged contractor networks that could promote and endorse the program, partnerships with local business and organizations, and the access to rebates, incentives and financing mechanisms. The programs were successful in building relationships with a variety of community participants including: local contractors, Associations of REALTORS, home builders associations, universities, utilities, local and state governments, and other non-profit organizations.
Throughout this program, 933 building audits and 795 building retrofits were completed making homes in Alabama more comfortable, less expensive to operate, more valuable to the marketplace, and safer and healthier for families. Continuing on this momentum, Nexus Energy Center plans to continue operating and expanding operations in Alabama as a Home Performance with ENERGY STAR sponsor and will continue to provide energy services and education to communities in Alabama.
Energy efficiency is vitally important in Maine. Nearly 70% of Maine households rely on fuel oil as their primary energy source for home heating, a higher share than in any other state. Coupled with the state's long, cold winters, Maine's dependence on oil renders homeowners particularly vulnerable to fluctuating fuel costs. With $4.5 million in seed funding from the Energy Department's Better Buildings Neighborhood Program, the Governor's Energy Office (GEO), through Efficiency Maine Trust (the Trust), is spurring Maine landlords to lower their monthly energy bills and improve comfort for their tenants during the state's cold winter months and increasingly warmer summers. Maine's aging multifamily housing stock can be expensive to heat and costly to maintain. It is not unusual to find buildings with little or no insulation, drafty windows, and significant air leaks, making them ideal candidates for energy efficiency upgrades.
Maine modeled its Multifamily Efficiency Program (MEP) after the state's highly successful Home Energy Savings Program (HESP) for single-family homes. HESP provided cash incentives and financing opportunities to owners of one-to four-unit structures, which resulted in thousands of energy assessments and whole-house energy upgrades in 225 communities. Maine's new MEP multifamily energy efficiency upgrade and weatherization initiative focuses on small to medium-sized (i.e., five to 20 units) apartment buildings. The program's energy efficiency upgrades will provide at least 20% energy savings for each upgraded multifamily unit.
The Trust’s MEP relies on a network of approved program partners who help move projects through the pipeline from assessment to upgrade. MEP has two components: benchmarking and development of an Energy Reduction Plan (ERP). Using the ENERGY STAR® Portfolio Manager benchmarking tool, MEP provides an assessment of current energy usage in the building, establishes a baseline for future energy efficiency improvements, and enables tracking and monitoring of future energy usage at the building— all at no cost to the building owner. The ERP is developed by a program partner using either the Trust’s approved modeling or prescriptive tools; it provides detailed information about the current energyrelated conditions in the building and recommends energy efficiency, health, and safety improvements.
City Of Fort Pierce
The Trust's delivery contractor provides quality assurance and controls throughout the process. Through this effort, MEP's goal is to establish a self-sustaining, market-driven program, demonstrating the value of energy efficiency to other building owners. The increasing value of properties across the state will help incentivize these owners to continue upgrades after the grant period has ended. Targeting urban areas in Maine with dense clusters of multifamily units—such as Portland, Lewiston- Auburn, Bangor, and Augusta—MEP engaged a variety of stakeholder groups early on to design its multifamily program. Through direct emails and its website, program officials invited lending institutions, building professionals, engineering firms, equipment distributors, and local property owners associations to attend open meetings around the state to learn about the goals of the multifamily program and to help define its parameters. These meetings helped program administrators understand the diversity of the customer base: some owners are individuals with a single building, while other owners are groups of people or management companies with an entire portfolio of multifamily buildings. The diversity of the customer base notwithstanding, owners see MEP as an opportunity to make gains in their respective properties.
Consistently high turnouts at stakeholder meetings fueled greater customer interest as awareness of the program spread through word of mouth. The program also gained traction by utilizing the program partner networks and building on the legacy of the Trust’s successful HESP for single-family residences. MEP offers significant incentives for building owners to participate in the upgrade program. Wholebuilding benchmarking services are available to most multifamily housing buildings free of charge. The service provides the building owner with an assessment of the building's current energy efficiency as compared to other multifamily buildings on a national scale, establishes a baseline to measure future improvements, and enables owners to track monthly energy consumption using the ENERGY STAR Portfolio Manager. Once the benchmarking process is complete, the program links building owners with approved program partners (e.g., energy professionals, home performance contractors) to identify and implement specific energy-saving opportunities in the building. Program partners can also provide project quotes with estimated financing incentives and payback period calculations that enable building owners to make informed decisions.
What's more, the Trust provides two financial incentives for successful completion of program milestones. The first is a per-unit incentive for completion of an approved ERP (i.e., $100 per unit if a prescriptive path is followed, and $200 per unit for a modeled ERP). Upon final inspection of the installed project scope of work, an incentive of $1,400 per unit or 50% of installed cost—whichever is less—is paid. The Trust originally established a $1 million loan-loss reserve fund (LLRF) to further enhance financing opportunities for qualified multifamily building owners. This funding mechanism was designed to connect building owners with lenders that retain the mortgages for their properties and encourages the lenders to offer financing for energy efficiency improvements. However, there has been no interest in the LLRF and therefore the LLRF has been reduced.
Ultimately, MEP plans to build an online tool for building owners to assess opportunities to make upgrades in their multifamily units. The tool will include a performance rating system to provide a way for building owners to more easily understand energy use in their building, and how it could be improved with energy efficiency upgrades. Prospective tenants will also be able to use the rating system to make informed decisions about where to rent. Furthermore, the rating can be incorporated into real estate listings as a way for prospective home buyers and the real estate financial community to evaluate a home's operating costs. The Trust’s MEP has identified the state's most experienced energy professionals, vendors, suppliers, and contractors that install energy efficiency equipment in the multifamily sector to be qualified program partners.
To be eligible for partnership, energy assessment professionals and contractors are required to have demonstrated experience in the multifamily sector and hold associated professional certifications, such as Building Operator Certification (BOC), Certified Energy Manager (CEM), Professional Engineer (PE), or Building Performance Institute (BPI) Multifamily Building Analyst. Widespread program interest has enabled the Trust to redirect funds that might otherwise be needed for program promotion to building capacity through contractor training.
In addition to boosting professional training and certification opportunities, MEP teaches its partners how to market the multifamily program to prospective multifamily homeowners. This report serves as the Final Report for Santa Barbara County’s Energy Efficiency and Conservation Block Grant (EECBG) BetterBuildings Neighborhood Program (BBNP) award from the U.S. Department of Energy (DOE). This report explains how DOE BBNP funding was invested to develop robust program infrastructure designed to help property owners complete energy improvements, thereby generating substantial outcomes for the local environment and economy. It provides an overview of program development and design within the grant period, program accomplishments and challenges to date, and a plan for the future sustainability of emPower, the County’s innovative clean energy and building efficiency program.
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During the grant period, Santa Barbara County’s emPower program primarily targeted 32,000 owner occupied, single family, detached residential homes over 25 years old within the County. In order to help these homeowners and their contractors overcome market barriers to completing residential energy improvements, the program developed and promoted six voluntary, market-based service areas: 1) low cost residential financing (loan loss reserve with two local credit unions), 2) residential rebates, 3) local customer service, 4) expert energy advising, 5) workforce development and training, and 6) marketing, education and outreach. The main goals of the program were to lower building energy use, create jobs and develop a lasting regional building performance market. These services have generated important early outcomes and lessons after the program’s first two years in service. The DOE BBNP funding was extended through October 2014 to enable Santa Barbara County to generate continued outcomes. In fact, funding related to residential financing remains wholly available for the foreseeable future to continue offering Home Upgrade Loans to approximately 1,300 homeowners. The County’s investment of DOE BBNP funding was used to build a lasting, effective, and innovative program design that has earned statewide recognition and distinction.
As a result of the County’s leadership, the California Energy Commission (CEC) and the California Public Utilities Commission (PUC) offered over $5 million in funding to continue realizing ongoing returns on the initial investment made in developing emPower, alongside remaining (extended) DOE BBNP funds. These new funding sources, accepted by the County Board of Supervisors on June 25, 2013, also allow the program to expand its innovative energy solutions to the broader region, including Ventura and San Luis Obispo Counties.
Kathy Sizemore, 65, and her husband had just replaced the leaky roof on their two bedroom, two-bathroom home in North St. Petersburg.A few months later, Hurricane Irma struck, and their refrigerator broke down. Meanwhile, her air conditioner was on its last leg.
Between $300 to $400 monthly electric bills and costly visits by the A/C repairman to fix the failing unit, the likelihood of saving up for a down payment for a new system and securing a loan seemed out of reach.Then in the spring, a flier for the non-profit Solar and Energy Loan Fund, known as SELF, came in her water bill. SELF helps homeowners with low credit scores who are looking for loans to make energy-efficient home improvements, from new air conditioners to hurricane shutters, roofs, solar panels, and even wheelchair access ramps.
She made a call, submitted an application, and qualified for a loan to get a new energy-efficient air conditioner within a matter of weeks. Kathy says her family has already saved hundreds of dollars off their electric bills. Her loan has an 8 percent interest rate and a payment structure she and her husband can afford: $156 per month, with a 5-year repayment plan.SELF was founded in 2011 by Doug Coward, a former St.
Lucie County commissioner who wanted to help community members save on their energy bills, improve the value of their homes and decrease their environmental footprint.' We're a non-profit,' Coward said. 'We are not pushing loans on people for the sake of meeting our lender's (expectations). We're sitting down and evaluating their family budget to build a loan around their ability to pay.
As a result of that, we're helping people to secure the financing they need.' In June, SELF opened a Tampa office in partnership with Hillsborough County. The county is contributing $300,000 over the next three years to cover the costs of a loan officer to initiate and process the loans.' People are in desperate need of this kind of help,' said Commissioner Pat Kemp, an advocate for bringing the program to Hillsborough County.SELF pays contractors directly for the work and ensures projects are completed before final payment. Coward said the organization has a developed growing list of reliable contractors prepared to do the work properly.