Appendix A: Full State Reports - Sustainable Energy Utility

California Energy Efficiency Programs
Legislation
Building and appliance efficiency standards were first created in 1976 in response to a legislated
mandate to reduce California’s energy consumption.
Assembly Bill 1890 (1996):
AB 1890 required the three investor owned electric utilities in California to collect a public
goods charge (PGC) on electricity sales. PCG funds support cost-effective energy efficiency and
conservation, low-income energy assistance, public interest R&D, and installation of renewable
energy generation “not adequately provided by the competitive and regulated markets.”
Assembly Bill 1002 (2000): AB 1002 added a public goods charge to utility gas rates.
Program Structure
Program regulators:
California Energy Commission (CEC);
California Public Utilities Commission (CPUC);
Low-Income Oversight Board (LIOB)
Program Administrators:
Four major investor owned utilities (IOUs):
(Pacific Gas & Electric; Southern California Edison; San Diego Gas & Electric; Southern California Gas)
Appendix A – Page 1

Program Implementers:
Any entity contracted by the IOUs, with the exception that implementers cannot be EM&V
contractors. The CPUC has implemented a 20% minimum open bidding requirement to allow
third-parties to implement competitively contracted services.
Program Advisory Groups (PAGs):
CPUC directed each utility to create a separate program advisory group for each service territory
to “safeguard against potential bias in program selection and portfolio management.” 1
Purpose of PAGs:
1.Promote transparency in administrators’ decision making processes;
2. Provide a forum to obtain technical expertise from stakeholders and non-market
participants
3. Encourage collaboration among stakeholders
4. Create an additional venue for public participation
5. Create an open exchange of information for utility program administrators, experts,
and stakeholders,
6. Provide independent assessment of utilities’ portfolio design and program selection
PAGs meet at least once every quarter and must report to the CPUC’s “Energy Division with
recommendations on (1) how the utilities can improve their effectiveness as administrators in
managing the portfolio of programs, and (2) how the program selection process can be improved
to better meet the Commission’s procurement goals.” 2
Peer Review Groups (PRGs):
Peer Review Groups are non-financially interested sub-groups of the Program Advisory Groups.
PRGs review utilities’ submittals to the CPUC and assess the utilities’ overall portfolio plans,
their plans to bid out pieces of the portfolio, and the proposed bid evaluation criteria. PRGs also
assess the portfolio’s ability to meet or exceed short- and long-term savings goals. CPUC can
also hire independent consultants to provide program assessments (paid for by efficiency
programs). Utilities must include PRG assessments with their filings of program plans and final
program offerings. Staff members of the CPUC Energy Division and the Office of Ratepayer
Advocates (ORA) are ex officio members of each PAG and PRG. The CEC also participates as a
member.
Funding Sources
All IOU electricity and gas customers pay a public goods charge equivalent to approximately 1%
and 0.7% of their respective electric and gas bills. PGC funds yield approximately $540 million
per year for public purpose programs.
In addition to PGC funds, the CPUC approves IOU-proposed incremental revenue requirements
to meet energy efficiency targets. IOUs establish energy efficiency targets and energy efficiency
budget requirements, but if these budget requirements exceed available PGC funds, which they
do, then IOUs are allowed to collect the difference through distribution rates.
1 Page 12. http://www.cpuc.ca.gov/Published/Graphics/48668.pdf
2 ibid
Appendix A – Page 2

The CEC is funded by a combination of PGC, federal, and State trust monies.
Budget
Total 2006-2008 Budget for IOU Administered energy efficiency programs: $2.14 billion
Expected program benefits for ratepayers (2006-2008) = $5 billion 3
8%
4%
5%
4% 4%3% 3%
8%
13%
PG&E Annual Program Budget
2006-2008=$942,900,260
48%
Mass Market
Industrial
EM&V
Agricultural and Food Processing
Education and Training
Other
Commercial (Office Buildings)
Residential New Construction
Statewide Marketing
Medical
3%
4%
4%
3%
5%
19%
7%
8%
SDG&E Annual Program Budget
2006-2008=$278,143,810
12%
20%
15%
Third Party Programs
Energy Savings Bids
Other
Small Business Super Saver
EM&V
Upstream Lighting
Savings by Design
Partnerships (Cities/Universities)
Standard Performance Prog.
Express Efficiency Rebates
Statewide Marketing
5%
6%
4% 3%
4%
5%
16%
SCE Annual Program Budget
2006-2008=
$728,818,559
15%
6%
9%
6%
7%
7%
Business 7% Incentives Other
Residential EE Rebates
M ultifamily Rebates
HVAC non-resid.
Industrial Processes
Agricultural EE
Small Business
EM &V
Small Business
Partnerships
Appliance Recycling
IDEEA
Education Training
16%
5%
21%
4%
4%
Renewables
Primary Staff Funds
Other
California Energy Commission
Annual Program Budget
2006/2007= $328,000,000
50%
Public Interest RD&D
Nat. Gas Research
Federal Funds
3 CPUC Press Release, September 22, 2005. Accessed
September 22, 2006
Appendix A – Page 3

Annual Expenditure on Efficiency Programs 2000-2004 ($000) 4
Year 2000 2001 2002 2003 2004
PG&E $171,828 $166,828 $130,001 $139,967 $132,752
SCE $105,943 $93,748 $77,361 $104,932 $146,763
SDG&E $30,044 $41,489 $19,902 $34,364 $37,828
Total $307,815 $302,065 $227,264 $279,263 $317,343
Approved Funding for 2006-2008 (in Thousands of dollars) 5
Year 2006
% Diff
from
Previous
Year 2007
% Diff
from
Previous
Year 2008
% Diff
from
Previous
Year Total Cost
PG&E $276,000 111% $304,000 10% $373,000 23% $953,000
SCE $243,000 43% $243,000 0% $243,000 0% $729,000
SDG&E $81,000 30% $91,000 12% $106,000 16% $278,000
SCG $48,000 47% $61,000 27% $73,000 20% $182,000
Total $648,000 $699,000 $795,000 $2,142,000
Projected IOU Energy
Savings (GWh) 2,152 2,482 2,724 7,358
Current Program Targets
Efficiency:
Meet 50% of future electricity load growth and reduce demand by three large power
plants (1,500 MW); achieve savings of $2.7 billion for consumers, decrease average
customer bills by 2% by 2009.
Achieve 90% of remaining cost-effective energy efficiency resource potential by 2013. 6
Appliance Standards:
Updates to the 2004 Building Appliance Standards will avoid five large power plants
(2,500 MW) in the next 10 years and reduce customer bills by $3.3 billion.
General:
Establish an electricity system loading order as follows: energy efficiency and
conservation plus demand response, renewables including distributed generation, cleanest
available fossil fuel generation. 7
4 CEC (2005) "Funding and Energy Savings from Investor-Owned Utility Energy Efficiency Programs in California
for Program Years 2000 Through 2004,” Accessed September 21, 2006.
5 ibid
6 CEC (2005) "Funding and Energy Savings from Investor-Owned Utility Energy Efficiency Programs in California for Program
Years 2000 Through 2004,” p. 14 Accessed September 21, 2006.
7 CEC, CPUC, “Energy Action Plan I.”
Appendix A – Page 4

Results
Cost Effectiveness
Cost of Energy Efficiency Compared to
Electricity Generation in California
(Prices from July 2006)
Cost of Energy Efficiency
Compared to Natural Gas
Heating in California
0.16
0.1666
0.1618
1.2
1
1.087
$/kWh
0.12
0.08
0.04
0
0.0342
Average
Cost of EE
Programs
for 2000-04
0.0302
Average
Cost of EE
Programs
for 2006-08
Price of
Residential
Electricity
Price of
Commercial
Electricity
$/ccf
0.8
0.6
0.4
0.2
0
0.21255
Average Cost
of EE
Programs for
2006-08
Average Price
of Natural
Gas (July
2006)
First-Year Demand and Energy Savings (2001-2004)
Year Expenditure ($000) Demand Savings Energy Savings Gas Savings (million therms)
2001 $302,065 436 MW 1,600 GWh 17.8
2002 $227,264 355 MW 1,200 GWh 20
2003 $279,263 291 MW 1,300 GWh 34.2
2004 $317,343 377 MW 1,900 GWh 39
Detail of 2004 Program Year Results
First Year
Energy
Savings
(GWh)
First year
demand
savings
(MW)
Total Utility
Retail
Revenue
($000)
E-Eff.
Funds As %
of Retail
Revenue
% of Total
% of Total Funding
Utility
GWh
MW ($000)
PG&E 623 0.80% 141 0.60% $132,752 6,738,167 1.97%
SCE 984 1.20% 185 0.90% $146,763 5,648,414 2.60%
SDG&E 236 1.40% 51 1.40% $37,828 1,480,871 2.55%
Total 1,843 1.00% 377 0.80% $317,343 13,867,452 2.29%
Average levelized costs of 2004 energy efficiency programs = 1.1 cents per kWh 8
8 California Energy Commission (2005) “Funding and Energy Savings From Investor-Owned Utility Energy
Efficiency Programs In California for Program Years 2000 Through 2004,” p. 11
Appendix A – Page 5

CEC Programs
Program Category Technologies Clients
Standards and Regulations
Appliance Efficiency & Regs. Determined by CEC All sectors
Building Efficiency (Title 24) Determined by CEC All sectors
Green Building Initiative Energy-star / LEED Certification Government and private
buildings
Incentives
Agriculture
Specific incentives and services for Specific ag. industries
each industry
Industrial Process Energy Specific to each project/industry Industrial sector
Low Interest Loans & Tech. Assistance
Water Energy
Technical assistance, technology
demonstration
Bright Schools Program
Efficiency Financing for Local
Government, Hospitals, Schools
Engineering and architectural
technical assistance
Financing for any EE upgrades.
Water pumping, water
treatment, wastewater
treatment
Local government,
hospitals, and schools
Marketing
Flex Your Power
State-wide information clearinghouse
for IOU administered EE services
All sectors
IOU Service Programs (Available in PG&E Service Territory as an example)
Program Category Service Clients Description
Audits
-Online self-audit advice
-Water conservation
Diagnostic & Measurement Tools
Tool lending library
Residential,
Commercial, Industrial,
Agricultural
Res., Com., Ind. Ag.
Education
Targeted to homeowners
and professionals
Classroom materials for
teachers
Targeted to construction
professionals
Equipment Testing, Tune-up, Repair
Technologies serviced
depend on industry
Project Design Assistance
Statewide Savings By
Design Program
Res., Com., Ind., Ag
Commercial, Industrial,
Agricultural
Commercial, Industrial,
Agricultural
Targeted to the food
service industry
Building design
assistance specific to the
project.
Accessed
September 22, 2006.
Appendix A – Page 6

Training and Certification
Savings By Design:
Energy Design
Resources
Architects, engineers,
lighting designers,
facility owners,
developers
IOU Incentive Programs (available in PG&E service territory as an example)
Program Category Technologies Clients
Rebates
Appliances
-Clothes washers & dryers
-Dishwashers
-Refrigerators & Freezers
Residential, Commercial,
Industrial, Ag.
Building Envelope
Demand Response
Equipment insulation
-Doors
-Insulation
-Windows
-Day-ahead notification
Commercial, Industrial, Ag.
Residential
Residential, Commercial,
Industrial, Ag.
-Day-of Notification
Commercial, Industrial, Ag.
Low-income assistance Weatherization Residential
Food Service Equipment
Heating & Cooling
Lighting
Miscellaneous
-Air conditioning & fans
-Boilers
-Water heaters
-Furnaces
-Heat pumps
-CFLs
-Controls & Sensors
-Exit signs
-Indoor lighting
-Lighting fixtures
-Outdoor lighting
-Transportation (DOE rebates
for hybrid vehicles)
Commercial, Industrial, Ag.
Residential, Commercial,
Industrial, Ag
Commercial, Industrial, Ag.
Residential, Commercial,
Industrial, Ag.
Residential, Commercial,
Industrial, Ag.
-Fuel cells
Commercial, Industrial, Ag.
Motors & Drives -Microturbines Commercial, Industrial, Ag.
Outdoors -Pool pumps & motors Residential
Water Efficiency
Whole Building & Systems
-Aerators & Showerheads
-Toilets & Urinals
-ENERGY STAR homes
-New construction
-Lighting, HVAC, envelope
Residential, Commercial,
Industrial, Ag.
-Residential
-Commercial, Industrial, Ag.
Appendix A – Page 7

Additional Results: 9
9 California Energy Commission. “Energy Efficiency: California’s Highest-Priority Resource.”
ftp://ftp.cpuc.ca.gov/Egy_Efficiency/Calif_EE_brochure_6.20.06.pdf. p. 4
Appendix A – Page 8

California Renewable Energy Incentives
Legislative History
California Energy Commission’s Renewable Energy Program:
AB 1890 (1996) required the IOUs to collect a total of $540 million for the Renewable Energy
Program from 1998 to 2001. 10
SB 90 (1997) established the CEC’s Renewable Energy Program categories, four of which still
continue: 11
- Existing Renewable Resources:
o Promote market competition among existing, typically utility-scale, renewable
energy facilities. Incentives are performance based.
- New Renewable Resources:
o Encourage renewable generation projects that have the potential to become
competitive with conventional technology. The CEC has interpreted this to
include the following eligible technologies: biomass, digester gas, geothermal,
landfill gas, small hydro, waste tire, and wind.
- Emerging Renewables:
o Incentives for end-use customer-sited renewable energy generation for PV, solar
thermal electric, fuel cells with renewable fuels, small wind.
- Consumer education.
o Inform public about benefits of renewable energy; establish the Western Regional
Generation Information System (WREGIS) to track renewable energy generation.
AB 995 and SB 1194 (2000) refinanced the CEC’s Renewable Energy Programs by directing
IOUs to collect $135 million/yr from 2002 through 2011 to support renewable energy. 12 The goal
of this funding allocation is to establish a competitive, self-sustaining renewable energy industry.
CPUC Self-Generation Incentive Program:
AB 970 (2000) required the CPUC to implement load control and distributed generation
programs. CPUC Decision 01-03-073, on March 27, 2001, mandated IOUs to implement a selfgeneration
program to promote public benefits to all ratepayers, including gas ratepayers. 13 The
SGIP program was designed to offer incentives from 2001 through 2007.
California Solar Initiative:
The CPUC made an administrative decision to create the California Solar Initiative (CSI) based
on the Legislature’s stated goals to create a self-sustaining renewable energy industry and to
install one million solar systems. The CSI will be funded by IOU demand rates. As of January 1,
2007, the remaining funding and administrative structure of the Self-Generation Incentive
Program will continue as the California Solar Initiative.
SB 1: Passed Aug. 21, 2006:
10 CEC 2005 Report, p. 2 http://www.energy.ca.gov/2005publications/CEC-300-2005-020/CEC-300-2005-020.PDF
11
12 ibid
13 Itron (2005), “CPUC Self-Generation Incentive Program Fourth-Year Impact Report,” p. 7.
Appendix A – Page 9

California Senate Bill 1 requires developers (“sellers of production homes”) to offer home
buyers option of a solar energy system, or else developers can forgo the option by participating
in an offset program to be designed by the CEC. The CEC must determine to what extent solar
systems should be required on new residential and nonresidential buildings. SB 1 also requires
PV incentives offered in the CSI to decline by a rate of 7% annually until incentives are phased
out by 2017. SB 1 expands the allowable net metering capacity to 2.5% of a utility’s aggregate
customer demand.
SB 1 also required all local publicly owned electric utilities that sell retail electricity to adopt,
implement, and finance a solar initiative program to encourage increased installation of
residential and commercial solar energy systems.
RPS: 14
Senate Bill 1078 (2002) requires an annual increase in renewable generation by the IOUs
equivalent to at least 1% of sales, with an aggregate goal of 20% by 2017. The CPUC intends to
accelerate the goals to 2010 (outlined in Energy Action Plans I and II). The CEC is now
considering a new target of 33% renewable energy generation by 2020.
Program Structure
Self-Generation Incentive Program & Emerging Renewables Program Through 2006
14 http://www.cpuc.ca.gov/static/energy/electric/renewableenergy/index.htm
Appendix A – Page 10

CEC Renewable Energy Programs:
• Emerging Renewables Program
Until the end of 2006 the CEC will administer cash rebate programs for all end-use
customer-sited PV, solar thermal electric, fuel cell with renewable fuels, and wind systems
under 30kW installed capacity. After January 1, 2007, when the California Solar Initiative
begins, the CEC will only manage PV rebates for new residential construction.
System owners, or a third-party on their behalf, apply to the CEC for a conditional rebate
reservation. Once a rebate reservation is accepted applicants have up to six months to
complete their systems. Public and charter schools have up to 18 months to complete system
installation.
To be eligible the “systems must be located on the premises of customers of California’s
investor-owned electrical utilities, and sized so that the electricity they produce offsets part or
all of the electrical needs of the premises.” 15 Systems cannot be sized larger than the
customer’s historic demand. There is no application fee to reserve an incentive.
The CEC was formerly required to submit quarterly reports, a biennial report, and annual
project activity reports to the Legislature. After the Legislature passed AB 2304, in
September 2004, the CEC replaced these reports by a single, comprehensive, annual report.
• New Renewable Facilities Program
Funds from this program encourage new renewable energy generation technologies that are
likely to become competitive with conventional technologies at utility scales. Funds are
awarded through auctions. Auction-winning projects receive production incentives for the
first five years of generation. 16
Funding from this program can also be used to meet the above-market costs of renewable
energy generation to meet RPS requirements. 17 Future funding will be awarded by RPS
solicitations, not auctions.
• Existing Renewable Facilities Program
Provides previously determined incentives to existing facilities. Production incentives for
existing renewable facilities have totaled $209 million in funding to support 4,400 MW of
renewables already on-line by 1998. In FY2005, the CEC disbursed $10.7 million for 1,250
GWh of generation. 18
• Consumer Education
The CEC administers grants and contracts to increase public awareness of renewable energy
and its benefits. The CEC also contracts research to develop and implement WREGIS.
15 http://www.energy.ca.gov/renewables/emerging_renewables/more_info.html
16 CEC 2005 Annual Report, p. 3, http://www.energy.ca.gov/2005publications/CEC-300-2005-020/CEC-300-2005-
020.PDF
17 ibid
18 ibid
Appendix A – Page 11

Self-Generation Incentive Program:
The CPUC’s Self Generation Incentive Program (SGIP), Decision 01-03-073, is administered on
a regional joint-delivery basis by the IOUs, though SDG&E must contract with the San Diego
Regional Energy Office (SDREO) for some administrative and all implementation
responsibilities. 19
The CPUC mandated that current SGIP program administrators meet the following program
delivery requirements:
- Incentives are fixed on a statewide basis
- On-site inspections are conducted to verify equipment installation and operational
status.
- Measuring and verification include either a census or sampling of energy production
from operational projects
- Excepting measurement and verification expenses, program administration
expenditure is limited to 5% of program funding.
CPUC hired an independent analyst to study the two different program administration models:
the IOU administrative model and a non-utility administrative model (SDG&E and SDREO). All
IOUs plus SDREO, the CPUC, and the CEC comprise a statewide working group to address
implementation problems and implementation modifications.
Due to a long rebate wait-list and a high percentage of rebate applications that did not result in
projects being continued to fruition, the CPUC increased the rebate application fee to 0.5% of the
project’s qualifying rebate level 20 to discourage speculative projects from needlessly reserving
funds.
The SGIP will be rolled into the California Solar Initiative on January 1, 2007.
California Solar Initiative:
The CSI will be regulated by the CPUC and administered by current SGIP administrators
(IOUs).
Funding Sources
Funds for both CEC programs and the Self-Generation Incentive Program come from Public
Goods Charges (PGC) and incremental demand rates from all IOU ratepayers. If non-regulated
utilities contribute funds then their customers may participate in either rebate program. Because
of high interest in rebate programs for customer-sited renewables, AB 135 (2004) authorized the
CEC to reallocate $60 million from the New Renewables Program to the Emerging Renewables
Program.
The CSI will be funded by incremental demand rates from all IOU ratepayers, which will yield
$2.8 billion between 2007 until 2017. The average IOU electricity customer will pay $12 per
year, and natural gas customers will pay $1.4 per year, though these costs are expected to have a
19 Itron (2006) “Self-Generation Incentive Program Administrator Comparative Assessment,” p. 14.
20 2006 Self-Generation Incentive Program Handbook, p. 4-3.
Appendix A – Page 12

minimal impact on customers’ bills since rate reduction bonds from the 1996 electricity industry
restructuring expire at the end of 2007 when the CSI program begins. 21
Budget
CEC Renewable Resource Trust
Fund Annual Budget
2003-2006: $135 million
10% 1%
Self Generation Incentive
Program Total Incentives Paid
2001-2006 (complete+active
projects): = $891,800,000
18%
51%
0.5%
0.3%
4.0%
82.1%
3.2%
20%
New Renewable Facilities
Existing Renewable Facilities
Emerging Renewables
Customer Credit (Direct Access Customers)
Consumer Education
22
New Renewable Facilities: Biomass, digester gas,
geothermal, landfill gas, small hydro, wind.
9.9%
PV
Microturbines
Gas Turbines
IC Engines
Fuel Cells
Wind
IC Engines must use renewable fuels, use waste heat
recovery, and meet air quality standards.
Existing Renewable Facilities: Existing utility-scale
renewable projects
Emerging Renewables: On-site PV, solar thermal
electric, fuel cells with renewable fuels, small wind.
California Solar Initiative Program Budget
Total 2007-2017=$2.85 billion
(10% Allocated for low-income
customers/affordable housing projects)
$350 million
CPUC
CEC
$2.5 billion
21 http://www.cpuc.ca.gov/static/energy/solar/060112_solarfactsheet.htm
22 Source: http://www.energy.ca.gov/renewables/emerging_renewables/more_info.html
Appendix A – Page 13

Program Performance
CEC Renewable Energy Programs:
New Renewable Facilities June 1999- June 2005 (performance based incentives)
Technology MW On-Line# of projectsPayments ($)
Biomass 11.3 2
Digester Gas 2.05 1
Geothermal 59 2
Landfill Gas 36.37 14
Small Hydro 31.25 3
Waste Tire 0 0
Wind 348.12 25
Total MW (on-line) 488.09 47 $49,994,181
Total MW (on-line + in progress) 1,266 $217,038,000
Emerging Renewables from June 1999 to June 2005
Capacity Total Rebates Disbursed
PV (online) 56 MW $210,000,000
Emerging Renewables Installed from June 2005 to June 2006
Capacity Total Rebates Disbursed
PV (installed + in
progress) 51.6 MW $144,000,000*
*The CPUC provides no data for this year, but rebate levels were $2.8/W
CPUC Self-Generation Incentive Program:
New Renewable Facilities Program (July 2001 – June 2006)
Capacity (kW) Incentives ($)
% of total
capacity
% of total
incentives
PV 231,531 $732,157,769 51.5% 82.1%
IC Engines 149,970 $88,475,163 33.3% 9.9%
Microturbines 43,867 $28,926,171 9.8% 3.2%
Fuel Cells 11,850 $35,519,673 2.6% 4.0%
Gas Turbines 9,861 $2,404,000 2.2% 0.3%
Wind 2,650 $4,326,455 0.6% 0.5%
Total 449,729 $891,809,231 100.0% 100.0%
SGIP PV Installations Performance as of April 2006
# of Projects Total Capacity (MW)
Projects Completed 516 59.4
Projects Active 635 142
Total Projects 1,151 201.5
Wait list 75 24.4
Average Retail $/Watt installed cost = $8.81/Watt +/- $1.86
State-wide Totals:
Appendix A – Page 14

Total New PV Installations (CEC+SGIP) Between 1999 and Sept. 1, 2006
PV Installed from 1999 to 2006 (MW)
339 MW
Incentives disbursed $1,090,000,000
Cost Premium to Sate for PV
$0.077 / kWh
California Solar Initiative:
The CSI aims to add 3,000 MW of new solar capacity by 2017, which is roughly equal to 4% of
California’s current summer electricity demand.
Current Renewable Energy Incentives
CEC Emerging Renewables Program:
Rebates are for solar electric, solar thermal, and other emerging clean technologies in
applications sized under 30kW. Rebates for PV are currently $2.50 per watt AC. System sizes
cannot exceed 200% of the site’s historical or current demand.
Rebates Available for Emerging Renewable Systems 23
(Effective July 1, 2006)
Technology Type Size Category Rebate Offered*
Photovoltaic (Solar cells)** Less than 30 kilowatts $2.60 per watt
Solar Thermal Electric Fuel Cells
using a renewable fuel***
Less than 30 kilowatts
$3.00 per watt
Wind
First 7.5 kilowatts
Increments between
> 7.5 kW and < 30 kW
$2.50 per watt
$1.50 per watt
* Rebates for owner installed systems are discounted by 15 percent.
** Applicants may choose to receive incentive payments based on actual system performance instead of rebates.
*** Fuel cells that operate on non-renewable fuels and are used in combined heat and power applications, may be
eligible for rebates at a later date when funds from other sources, such as the Self-Generation Incentive Program, are no
longer available.
All of the rebate funds are available on a first-come and first-served basis until the funding is
exhausted. Rebate levels vary depending on system size, technology and type of installation. The
rebate levels for all technology types are scheduled to be reduced by 20 cents per watt every six
months (January 1st and July 1st).
23 http://www.consumerenergycenter.org/erprebate/program.html
Appendix A – Page 15

Self-Generation Incentive Program:
2006 Incentives Available for Installation
of Qualifying Equipment 24
Incentive Levels Eligible Technologies Incentive Minimum Maximum
($/Watt) system system
size size 1
Level 1 Solar Photovoltaics (PV) $2.80 30 kW 5.0 MW
Level 2 Renewable
Non-Solar
Level 3 Non-
Renewable
Wind Turbines $1.50 30 kW 5.0 MW
Fuel Cells (renewable fuel) $4.50 30 kW 5.0 MW
Microturbines and Small Gas Turbines
(renewable fuel) 3 $1.30 None 5.0 MW
IC Engines and Large Gas Turbines
(renewable fuel)
$1.00 None 5.0 MW
Fuel Cells (non-renewable fuel) 2 $2.50 None 5.0 MW
Microturbines and Small Gas Turbines (nonrenewable
$.80 None 5.0 MW
2,4
fuel)
IC Engines and Large Gas Turbines (nonrenewable
$.60 None 5.0 MW
2,4
fuel)
1
Maximum system size is 5.0 MW, however, output capacity above the first 1.0 MW is not eligible for incentives.
2
System must utilize waste heat recovery meeting Public Utilities Code 218.5
3
Small Gas Turbines are defined as gas turbines < 1.0 MW
4
System must meet AB1685 Emissions standards
Qualifying PV systems must be larger than 30kW, but no larger than 5MW. For very large PV
installations only the first 1MW qualifies for rebates. Rebates cover PV systems, PV-hybrid
systems and other approved technologies, sized up to 100% of the customer’s maximum demand
within the last year. Rebates are currently $2.50 per watt AC and decline by $0.30 once each
rebate-level quota is reached.
Future Renewable Energy Incentives:
A recent CPUC decision outlined the preliminary CSI program design.
For systems larger than 100 kilowatts, incentive payments over the first five years of operation
will be $0.39 per kilowatt-hour of output for taxable entities and $0.50 per kilowatt-hour of
output for government/non-profit organizations. Incentives are managed regionally by existing
self-generation program administrators (the IOUs). Residential and small commercial systems
(under 30kW) will receive $2.50 per watt and will be eligible for federal tax credits. Government
and non-profit organizations will receive $3.25 per watt to compensate for their lack of access to
the federal tax credit. By 2010, all systems over 30kW but under 100kW will receive
performance-based incentives after effective monitoring mechanisms are in place. All solar
energy systems will be required to install separate meters to measure solar output.
The CSI allocates the CEC $350 million to target new residential building construction.
All electric and gas customers of the IOUs are eligible for CSI incentives.
24 ibid.
Appendix A – Page 16

Cost Premium to State for PV
(Prices from July 2006)
0.2
0.16
0.1666 0.1618
$/kWh
0.12
0.08
0.0771
0.04
0
Cost Premium f or PV
(through incentive programs)
Price of Residential Electricity
Price of Commercial
Electricity
Appendix A – Page 17

California Low-Income Energy Efficiency Programs
Energy Efficiency and Fuel Assistance
Federally Funded Programs
The California Department of Community Services and Development administers both the
federal Low Income Home Energy Assistance Program (LIHEAP) and the federal
Weatherization Assistance Program (WAP); local governments, nonprofits, or other local
agencies implement actual programs. All residents below the greater of 150% of the State
poverty level, or 60% of the median State income qualify for these services. For fiscal year 2006,
federal LIHEAP funding is $152,032,389 and WAP funding is $7,085,364. LIHEAP funds are
used to reduce low-income households’ energy bills and to prevent fuel or electricity shut-off
due to bill non-payment. WAP services improve a household’s energy efficiency, thus reducing
energy consumption and energy expenditures. Average LIHEAP benefits are $219 per
household. Average WAP benefits are $300 per household.
State Funded Programs
LIEE (Low-Income Energy Efficiency Program):
California’s Low-Income Energy Efficiency Program (LIEE) began in 1980. The CPUC recently
expanded coverage eligibility for both LIEE and CARE from 175% of the Federal poverty level
to 200% of the Federal poverty level. LIEE provides free energy efficiency services to lowincome
households. The State PGC funds the LIEE program. CPUC Decision 05-12-026 in 2005
aimed to increase the baseline participation in LIEE programs by 5-10% in 2006, and required
IOUs to file augmented 2006 budget applications to meet this target.
CARE (California Alternative Rates for Energy):
Appendix A – Page 18

CARE began in 1989 (CA Public Utilities Code S. 739.1-739.2) to provide LIHEAP-like energy
bill assistance to low-income ratepayers in IOU service territories. CARE pays up to 20% of a
qualifying low-income household’s monthly utility bill. The cost of CARE services is not ‘borne
solely by any single class of customer.’ 25 State PGC funds do not support CARE; all funds are
collected by IOUs through customer rates.
• Administration
IOUs administer LIEE and CARE programs under the oversight of the CPUC and the
Low-Income Oversight Board (LOIB). IOUs can contract with local governments and
nonprofits. When assessing the cost-effectiveness of the LIEE programs, the CPUC and
the IOUs include energy and non-energy benefits (e.g. less financial hardship, less stress).
• CARE and LIEE Budgets 26
2006 Program Year Authorized Budgets for IOUs
LIEE Program
CARE Budget Budget
PG&E $332,069,000 $56,530,000
SCE $172,299,000 $27,400,000
SCG $99,143,249 $33,324,875
SDG&E $36,845,932 $13,368,093
Totals $640,357,181 $130,622,968
2005 Program Year Authorized Budgets for IOUs
CARE Admin
Expenses
CARE
Subsidies & Benefits
CARE Total
Budget LIEE Budget
PG&E $7,457,000 $191,300,000 $198,757,000 $56,530,000
SCE $4,199,000 $168,100,000 $172,299,000 $27,400,000
SCG $4,108,310 $75,315,876 $79,424,186 $33,966,503
SDG&E $2,625,882 $32,907,285 $35,533,167 $13,060,172
Totals $18,390,192 $467,623,161 $486,013,353 $130,956,675
• State-Wide Available Funding for Low-Income Energy Assistance Programs
California Low-Income Programs Total 2006 Funds = $804,087,781
Average Household Savings = $300
$7,085,364
$152,032,389
$28,000,000
$130,956,675
$486,013,353
Federal LIHEAP
Federal WAP
State CARE (Energy Rate Assistance)
State LIEE (Energy Efficiency)
State LI Renewables (avg. between 2007-
2016)
25 CA Public Utilities Code S. 739.1-739.2
26 CPUC R.04-01-006, D. 05-12-026, http://www.ligb.org/DOCS/
Appendix A – Page 19

• LIEE Program Offerings
LIEE program offerings are standardized state-wide by the four major IOUs. Customers
receive comprehensive LIEE services – all feasible measures are provided for maximum
benefits. Outreach is targeted to specific low-income customer groups (e.g. seniors,
ethnic communities). Utilities can use census tract data to identify areas with likely high
concentrations of low-income customers. All customers can self-certify for services by
demonstrating their income level.
California’s LIEE services focus on the “‘Big Six’ measures: (1) attic insulation; (2)
caulking; (3) weather stripping; (4) low-flow showerheads; (5) water heater blankets and
(6) door and building envelope repairs which reduce infiltration.” 27
Program Category
Energy Efficiency
Landlord Co Pays
Pilots
Other
Technology
Gas Appliances
Electric Appliances
Weatherization
Outreach/Assessment/Marketing
In-Home Energy Education
Air Conditioner Replacement, Central and
Room
Refrigerator (CoPay)
Cool Center 3
Cool Zones
LIHEAP leveraging
Natural Gas Appliance Testing
Training Center
Inspections
Advertising
Measurement and Evaluation
Regulatory Compliance
Other Administration
27 Source: http://www.liheap.ncat.org/Supplements/2005/cauwx.htm) See SB 845 (PUCode 2790) amended by
AB1393, Jan 2000.
Appendix A – Page 20

• LIEE Program Performance 2001-2005 (Inclusive)
LIEE Total Program Performance 2001-2005 (Inclusive)
Households
Served Expenditure
Energy
Savings
(MWh)
Gas Savings
(MTherms)
Household Energy
Savings
(kWh/hhld)
Monthly Household
Energy Savings
(kWh/hhld/month)
845,855 $573,570,220 233,414 10,928 276 23
LIEE Average Annual Performance (between 2001-2005)
Energy
Avg. Annual Mothly Household
Households Expenditure
Savings
(MWh)
Gas Savings
(MTherms)
Household Energy
(kWh/hh)
Energy Savings
(kWh/hh/month)
169,171 $114,714,044 46,683 2,186 276 23
• CARE Program Performance (2004):
o 3,064,563 households (within IOU territories)
o Benefit: 20% discounted electricity rates (roughly $209/yr)
Low-Income Renewable Energy Programs
CSI (California Solar Initiative) Affordable Housing Renewable Energy Incentives
The CPUC established the CSI Jan. 2006, CPUC D.06-01-024, to take effect on January 1, 2007.
The decision includes a reserve of 10% of program funding over 10 years ($280 million). IOUs
plus the San Diego Regional Energy Office will administer the CSI under CPUC oversight.
• Existing Low-Income Housing
AB 2723 (Sept. 30, 2006) outlines low-income programs requirements for existing lowincome
housing. The bill requires that not less than 10% of funds for the CSI be utilized
for solar energy systems for low-income residential housing. The PUC must incorporate a
revolving loan or loan guarantee program into the CSI for low-income residential
housing. Money from loan repayments and any other remaining funds allocated for lowincome
residential solar will be used to augment existing LIEE programs.
Low-income housing means, 1) residential housing financed with low-income housing
tax credits, tax-exempt mortgage revenue bonds, general obligation bonds, or local, state,
or federal loans or grants; 2) a residential complex in which at least 20% of the total units
are sold or rented to lower income households – low-income units must have a deed
restriction that ensures the units will be available at affordable housing cost for at least 30
years.
• New Affordable Housing
New affordable housing will receive 25% higher rebates, not to exceed 75% of total
system cost, if the housing meets several criteria: Eligible projects include single/multifamily
developments where at least 20% of units are reserved for low-to-moderateincome
households for 45 years. In multi-family projects the solar systems must serve
Appendix A – Page 21

only low to moderate-income households plus the manager’s unit. The solar systems may
serve common areas only where all of the project’s units are reserved for low-income
households. Each residential unit (single-family home; multi-family unit) must have an
individual electric utility meter.
To qualify, the homes must also be highly energy efficient. Each residential unit must
save at least 15% on combined space heating, space cooling, and water heating compared
to the CA 2005 Building Energy Efficiency Standards (for Tier I rebates - solar), and
35% for space heating, space cooling and water heating and 40% of air conditioning for
Tier II rebates (non-solar renewables). Developers must also document that all
permanently installed electric lighting is high efficiency except in dining rooms and small
closets, and that all appliances provided are Energy Star labeled. When solar systems are
installed to power common areas, the entire affordable housing project must be 20%
more efficiency than current standards in 2005 Building EE Standards. Developers/rebate
applicants must provide energy efficiency calculations by an individual who is a Certified
Energy Plans Examiner by the California Association of Building Energy Consultants.
Appendix A – Page 22

Connecticut Energy Efficiency Fund
(Draft – To Be Updated in January 2006)
Legislative / Program History
In 1998 the Connecticut General Assembly passed Public Act 98-28, which created the
Conservation and Load Management Fund, which is now known as the Connecticut Energy
Efficiency Fund (CEEF)
Structure and Governance
The energy-efficiency programs are administered by the state's two large investor-owned
utilities, subject to the regulatory oversight of the Connecticut Department of Public Utility
Control (DPUC). An independent advisory board, the Energy Conservation Management Board
(ECMB), which holds regularly scheduled public meetings, was created to provide a forum for
public input and to make recommendations to the DPUC and Legislature on energy-efficiency
policies and program design, program mix, and budgets.
The Connecticut Energy Conservation Management Board works with the Connecticut
Department of Public Utility Control to advise and assist the utility companies in implementing
energy efficiency and clean energy programs. The board is made up of people from various
backgrounds, some from industry, some representing the power company, and some representing
citizen or environmental interests. The CECMB was created with restructuring occurred in 1998
to work as a liaison between the utility companies, the people and the Department of Public
Utility Control. The utilities can provide feedback to the PUC through the CECMB.
Connecticut Energy
Advisory Board
Connecticut Energy Conservation
Management Board
advises
advises
Connecticut Department of
Public Utility Control
advises
oversees
Connecticut Energy Efficiency
Fund
provides
feedback
to
Utilities (United Illuminating and
Connecticut Light & Power)
programs
administered by
Appendix A – Page 23

The Connecticut Energy Conservation Management Board’s (CECMB’s) primary goal is to
eliminate utility disincentives that have led to energy profligacy in a restructured electricity
sector. While CECMB does not directly supervise the CEEF, the CECMB is responsible for
developing effective energy efficiency policies in Connecticut.
Program Goals
The CEEF is an initiative to help homeowners and renters, small and large businesses, and state
and local governments to improve their energy efficiency. CEEF targets services especially to
the southwest portion of Connecticut, where energy use is especially high and transmission lines
constrained.
Funding and Budget
The Connecticut Energy Efficiency Fund has a total annual budget of approximately $80 million,
which primarily supports commercial and industrial efficiency improvements. CEEF receives its
money from a conservation surcharge on customers’ electric bills. This funding has been
reduced in recent years. Due to Connecticut’s budget deficit, CEEF funding was reduced by 1/3
in 2006 to pay for other state services.
13
1%
3%
1%
3%
CEEF Program Budget
2005 = 80,000,000
53%
26%
Residential
Commercial
Industrial
Education
Misc.
Load
Research
Admin/Planning
Services / Clients / Programs
Incentive Programs
Program Category Technologies Clients Description
Rebates
Appliance Retirement Old refrigerators Residential Gives 50$ to retire old,
energy inefficient
refrigerators.
Connecticut Light &
Power(CL&P) picks the
old units up.
Appendix A – Page 24

Green Buildings
Construction Rebate
Energy Conscious
Blueprint Program
Municipal Buildings
Program
New homes, green
technologies
New buildings
Energy Efficiency
Residential
Commercial businesses
making a new
building/major
renovations
Municipal buildings,
schools, large
commercial.
Provides funding to
defray the additional
costs of green buildings,
to make them cost
competitive with
standard buildings.
The program pays the
average incremental
costs associated with
more expensive, energyefficient
equipment.
Technical and financial
assistance through
energy-efficiency
improvements. CL&P
will share up to fifty
percent (50%) of the
cost to install costeffective
energy
efficiency measures
Service Programs
Program Category Technologies Clients Description
Audits
PRIME Energy Efficiency Commercial, Industrial Provides no-cost,
facility walk-through
assessment of energy
efficiency.
Information/Awareness
Smartliving Center
Green technology
generally
Students, concerned
citizens.
EESmarts Packaged curriculums Teachers, grade school
students.
Weatherization
WRAP Program
Efficiency savingweatherization
Low-income residential
Provides information to
the public regarding
methods to improve
energy efficiency.
Provides grade-specific
curriculums on how to
be more energy
conscious.
Provides energy savingtechnologies
like
caulking,
weatherstripping,
fluorescent lighting, ect.
Additional Information on specific projects:
• EnergyStar: For defraying the cost of more energy efficient lighting.
• Appliance Retirement: Pick up inefficient appliances, recycle them, and pay the
consumer a rebate.
• Energy Conscious Construction: Rebates to encourage businesses and homeowners to
build green buildings. The goal of this program is to promote the adoption of energy
efficient technologies during building construction or remodeling defraying the initial
costs of the technology.
Appendix A – Page 25

• Low Income Energy Efficiency: This program helps low-income homeowners (or
renters) with income up to 200% of the federal poverty level to improve their household
energy efficiency. This program provides weatherization, low-flow shower heads, and
energy efficient lights free of charge for those who qualify.
• EESmarts: An education program that focuses on conscientious energy use, EESmarts is
a series of grade-specific curricula that teach school-age children how to make important
decisions about energy use in their daily lives. EESmarts is offered at no cost to schools
in Connecticut.
• PRIME: Free energy assessment audits to identify how individual businesses can
improve their energy efficiency.
Results
The costs of saving energy are significantly lower than the costs to the consumer of electricity in
the residential, commercial and industrial sectors.
$/kWh
0.2
0.16
0.12
0.08
0.04
Cost of Energy Efficiency Compared to
Electricity Generation in Connecticut
(Prices from July 2006)
0.032
0.1636
0.139
0
Average Cost of EE
Programs
Price of Residential
Electricity
Price of Commercial
Electricity
Costs vs Benefits of Energy Efficiency
(2006 estimates)
Dollars spent (millions)
50
45
40
35
30
25
20
15
10
5
0
22
Costs of Energy Efficiency
47
Total Energy Savings
Appendix A – Page 26

Connecticut Clean Energy Fund
(Draft – To Be Updated in January 2006)
The Connecticut Clean Energy Fund (CCEF) provides incentives for in-state renewable energy
generation and can also finance energy efficiency improvements in conjunction with the
Connecticut Energy Efficiency Fund. More detailed information about Connecticut’s Clean
Energy Fund and Connecticut Innovations will be added to the subsequent edition of this
document.
Legislative / Program History
In 1998 the Connecticut General Assembly passed Public Act 98-28, which created the
Renewable Energy Investment Fund, which was later renamed the Connecticut Clean Energy
Fund.
Structure and Governance
Connecticut Energy
Advisory Board
Connecticut Energy Conservation
Management Board
advises
advises
advises
Connecticut Department of
Public Utility Control
oversees
Connecticut Innovations
provide
feedback to
administers
oversees
Connecticut Clean
Energy Fund
Implements
programs with
works with
Utilities (United Illuminating and
Connecticut Light & Power)
Connecticut Innovations (CI) is a quasi-public organization that manages the Connecticut Clean
Energy Fund. CI has existed since 1989 to support the growth of high-tech industries in
Appendix A – Page 27

Connecticut, and has been responsible for managing the CCEF since it was created in 1998.
More information about Connecticut Innovations is forthcoming.
The Connecticut Energy Conservation Management Board (CECMB) works with the
Connecticut Department of Public Utility Control to advise and assist investor-owned utilities as
they implement the CCEF’s energy efficiency and clean energy programs. The Board is
composed of representatives from the utility industry, environmental organizations and the
public. The CECMB was created by Connecticut’s electricity sector restructuring legislation in
1998 for the purpose of acting as a liaison between the investor-owned utilities, the Department
of Public Utility Control, and the public. Investor-owned utilities can provide feedback to the
PUC through the CECMB.
Program Goals
The CCEF was charged with promoting the development and commercialization of clean energy
technologies and stimulating growth of an in-state market for clean energy technologies.
Funding and Budget
CCEF is funded by a surcharge on electric ratepayers' utility bills. Connecticut Innovations
administers the activities and investments of the Fund.
CCEF Program Budget
2005=$37,000,000 million
Fuel
6%
5% 8% 11%
Solar Energy
11%
On-Site DG
Operation
progra
Education and
59%
Administrative
Appendix A – Page 28

Services / Clients / Programs
Incentive Programs
Program Category Technologies Clients Description
Rebates
Small Solar PV Rebate
Program
Loans
Renewable Energy
Projects in Pre-
Development
Grants
On-Site Renewable DG
Program
Project 100
Photovoltaics
Solar Thermal Electric,
Photovoltaics, Landfill
Gas, Wind, Biomass,
Fuel Cells, Anaerobic
Digestion, Tidal Energy,
Wave Energy, Ocean
Thermal
Solar Thermal Electric,
Photovoltaics, Landfill
Gas, Wind, Biomass,
Hydroelectric, Fuel
Cells
Solar Thermal Electric,
Photovoltaics, Landfill
Gas, Wind, Biomass,
Fuel Cells, Small
Hydroelectric, Tidal
Energy, Wave Energy,
Ocean Thermal
Residential, Nonprofit,
Governmental,
Institutional
Commercial, Renewable
energy project
developers
Commercial, Industrial,
Schools, Govt.
Buildings
Commercial, Renewable
energy project
developers
Rebates will be given to
producers of solar
energy, on the level of
5$/Watt for the first
50kW. Participation by
installers is limited to
those selected through a
Request for Proposals
(RFP) process
A low-interest loan will
be given to businesses
interested in producing
renewable energy, to
reduce the risks of
investment.
Program budget of
$20.55 million supports
installation of smallmoderate
sized
renewables. Targeted
funding of $9 million
for solar and $9 million
for fuel cells.
Projects must have a
capacity of at least 1
MW and must begin
operation after July 1,
2003. Provides a
premium grant of up to
5.5¢ per kWh.
Service Programs
Program Category Technologies Clients Description
Information/Awareness
Community Innovations
Grant Program
Technical Assistance
Operational
Demonstration Program
Solar Thermal Electric,
Photovoltaics, Landfill
Gas, Wind, Biomass,
Fuel Cells,
CHP/Cogeneration,
Small Hydroelectric,
Tidal Energy, Wave
Eligible communities
Commercial
Provides a $5,000 block
grant to support public
awareness, education
projects.
Maximum funding of
$750,000 to demonstrate
the effectiveness of
clean energy
technologies. Funding
will be provided in the
form of a non-recourse,
Appendix A – Page 29

Energy, Ocean Thermal,
Other Distributed
Generation
Technologies
unsecured debt
instrument repaid upon
the achievement of
commercial success.
Additional Information on specific projects:
• Project 100: Detailed in P.A. 03-135, the legislation requires the State's electric
distribution companies to enter into at least 10-year contracts for not less than 100 MW
of Class I renewable capacity. Pricing under these contracts will include a premium of
5.5¢ per kWh. To be eligible, programs must have begun operation after July 1, 2003,
and be larger than 1 MW in capacity.
• Residential Solar PV Program: CCEF offers rebates for Connecticut residents who install
solar photovoltaic systems on their homes. This program began on October 1, 2004.
Incentives are available only through participating installers that have been approved by
CCEF. Systems may be of any size but must be grid-connected. The program offers an
incentive of $5 per Watt (PTC rating) for the first 5kW of system and installation costs,
with a maximum rebate of $25,000 per household.
• On-site Renewable DG Program: The On-site Renewable DG Program is a $21 million
program that funds CCEF central goal of promoting clean energy generation in
Connecticut. Through the On-site Renewable DG Program, CCEF offers financial
support to buy down the cost of renewable energy generating equipment. The level of
support for individual awards varies based on the specific economics of the installation.
Funding is available for wind, solar, fuel cells, biomass, landfill gas, and small
hydropower.
Results
Levelized Cost to Consumers
(for 25 years, $8/W)
Levelized Cost of Electricity
¢/kWh (2006 US$)
60
50
40
30
20
10
50.96
19.27
14.28
10.52
0
Commercial Building
LCOE (no deductions
or benefits)
After Connecticut
State Rebate
After Federal Tax
Credit
After Avoided Fuel
Cost Volatility Benefit
Appendix A – Page 30

Cost Premium to State for PV
(Prices from July 2006)
0.2
$/kWh
0.16
0.1477
0.1636
0.139
0.12
Cost Premium f or PV
(through incentive programs)
Price of Residential
Electricity
Price of Commercial
Electricity
Additional Information: Connecticut’s Renewable Portfolio Standard
RPS requirements
percent from renewables
12
10
8
6
4
2
0
2004 2005 2006 2007 2008 2009 2010
Year
Type 2 Renewables
Type 1 Renewables
Appendix A – Page 31

Connecticut Low Income Programs
(Draft – To Be Updated in January 2006)
Low Income Energy Efficiency and Fuel Assistance
Structure:
Federal LIHEAP and WAP funds are allocated to the Connecticut Department of Social Services
(CDSS), which administers the Connecticut Energy Assistance Program and the Contingency
Heating Assistance Program. In addition to federally funded programs, Connecticut has two
investor-owned utility-administered programs, the Weatherization Residential Assistance
Program (WRAP), administered by Connecticut Light & Power, and UI Helps, administered by
United Illuminated. Both of these utility administered programs are funded through a system
benefits charge. More detailed information about these programs will be included in the revised
version of this document.
Connecticut Low Income Structure
Federal LIHEAP
Money
Federal WAP Money
Utilities (United Illuminating
and Connecticut Light &
Power)
Allocated To
Allocated To
Connecticut Department
of Social Services
Works With
Connecticut Energy
Efficiency Fund
Administers
Administers
Administers
To Implement
Connecticut Energy
Assistance Program
and Contingency
Heating Assistance
Program
Other LIHEAP
Programs
Weatherization
Programs
CL&Ps WRAP
program and UI Helps
Appendix A – Page 32

Budget:
Connecticut Low Income Programs
Total Annual Funds = $56,400,000
$5,800,000
$3,600,000
$2,800,000
$44,200,000
LIHEAP funding
WAP funding
CEAP funding
State EE programs
Federal Programs
LIHEAP and WAP
LIHEAP is administered by the Department of Social Services in Connecticut.
LIHEAP FY 2006 Funding: $47,809,073
LIHEAP Households Served (Estimate for FY 2005 Heating): 66,300
CT WAP FY2006 Funding: $2,759,107
Connecticut Energy Assistance Program (CEAP) and (higher income) Contingency Heating
Assistance Program (CHAP)
$3.3 million in 2004 (estimated 3.6 million in 2006)
Money is carved-out from LIHEAP emergency funding, and is allocated to the Department of
Social Services in Connecticut.
State Programs
Connecticut Clean Energy Fund
Connecticut’s WRAP program and UI Helps comprise the low-income energy efficiency
program offerings of the CCEF. Households with an income of up to 200% of the federal
poverty level qualify. WRAP and UI Helps are implemented by the two investor owned utilities,
CP&L and UI, respectively. The Connecticut Department of Public Utility Control oversees the
administration of both programs. Total program expenditure was $5.8 million in 2005, which
served 18,421 households. The total lifetime energy efficiency savings for the 2005 program
year are estimated at 144 million kWh, which will save customers about $18 million.
Combined Program Results
Total expenditures: 56.4 million dollars in 2006.
Appendix A – Page 33

85,921 households served in 2005.
Appendix A – Page 34

Massachusetts Energy Efficiency Programs
Legislative/Program History
All gas and electric investor-owned utilities (IOU) and municipal utilities have been mandated to
provide Massachusetts energy efficiency programs to their customers since 1980 as per
Massachusetts Statute, Chapter 465, and Regulations 225 CMR 4.00 and 5.00. The program was
originally established as a result of the Federal Residential Conservation Service (RCS), and was
enhanced by state regulation whose requirements exceed those of the federal regulation. In 1990
when the Federal RCS regulation ended, the State requirement prevailed, leaving Massachusetts
as one of the few states where home energy audits and services are universally provided.
The focus of the utility residential programs in these early years centered on performing as many
audits as possible and offering a few efficiency materials as demonstrations. After a review
revealed that few residents were taking the proposed efficiency measures, the programs were
redesigned in 2000 to attempt to increase participation. Goals of the redesign included increasing
compatibility between the incentives from gas and electric utilities and providing more
incentives for residents to perform efficiency upgrades. During the redesign, MassSAVE was
created as a clearinghouse for residential customers.
Program Goals
MassSAVE is a clearinghouse for all utility-provided energy efficiency services for residential
customers. Utilities provide their own programs for commercial and industrial customers.
In August 2006 Gov. Romney unveiled a 10-year plan called Next-Gen Energy, which aims to
reduce energy consumption, diversify supply with renewable energy, fix infrastructure problems,
and promote an advanced energy technology sector. It aims to do this through time-of-day
pricing for small customers and real-time pricing for industry, utilities paying customers for
negawatts, and a conservation lottery, among other initiatives. No specific targets are set and the
plan appears to be still in development.
Services/Clients/Programs
Incentive Programs
Program Category Technologies Clients Description
Rebates
weatherization residential up to $1,500 rebates for
major weatherization
projects
appliances
commercial rebates
air conditioners, air
source heat pumps,
water heaters, furnaces,
boilers, washers
equipment insulation,
water heaters, furnaces,
boilers, air conditioners,
heat recovery,
programmable
thermostats, energy
residential
commercial
up to $300 rebates on
most appliances
$100-$6,000 for heating
equipment
Appendix A – Page 35

other efficiency
measures
Loans
HEAT Loan
commercial assistance
Grants
building grants
mgmt. systems/building
controls, building
insulation, boiler reset
controls, steam trap
replacements
windows, thermostats,
lighting, insulation
attic, wall, basement
insulation; high
efficiency heating
systems and water
heaters; EnergyStar
windows; duct sealing
and insulation
water heaters, lighting,
furnaces, boilers, heat
pumps, air conditioners,
windows, and motors
energy recovery devices,
combustion controls,
building energy
management systems,
desiccant units, infrared
space heating
equipment, infrared
process heating
equipment
residential
residential
commercial
commercial, industrial
various rebates
loans at 0-3% for up to
$15,000 and terms up to
7 years
0% loans
grants for new or underutilized
energy saving
technologies
Service Programs
Program Category Technologies Clients Description
Audits
Energy Assessments residential, low-income free audits with
incentive information
assessments and
technical assistance
lighting and controls,
HVAC systems, motors,
variable speed drives,
compressed air, outdoor
lighting, occupancy
sensors, programmable
thermostats, and walk-in
cooler measures
commercial, industrial,
schools, government,
multifamily buildings
Information/Awareness
Home Analyzer residential web-based home audit
Residential Programs:
MassSAVE has three main programs, each geared toward residential clients:
- Residential and Renewable Energy Hotline: The Hotline has three goals: to answer
resident inquiries about energy efficiency and renewable energy, to match residents'
needs with appropriate resources, and to identify residents who require a Home Energy
Assessment.
Appendix A – Page 36

- Home Energy Assessment: the participating utilities sponsor an audit of the home, with
free materials, financial incentives (low-interest loans and grants) and rebates offered for
various efficiency upgrades.
- Quality Assurance Assessment: DOER, DTE, MassSave program administrators and
MassSave program vendors work together to ensure that program participants receive
high quality services by requiring that program vendors meet certain minimum quality
control practices and inspecting each subcontractor's work for completeness, quality, and
customer satisfaction.
The programs are fuel-neutral, so electric utilities must provide the same services for oil as
electric-heated homes.
Utility Commercial and Industrial Programs:
Keyspan
• Building Practices and Demo Program: grants for new or under-utilized energy saving
technologies. Eligible technologies include: energy recovery devices, combustion
controls, building energy management systems, desiccant units, infrared space heating
equipment, infrared process heating equipment, and custom measures that include any
type of new equipment, processes or techniques that save energy.
• Commercial Energy Efficiency Programs: rebates for equipment insulation, water
heaters, furnaces, boilers, air conditioners, heat recovery, programmable thermostats,
energy mgmt. systems/building controls, building insulation, boiler reset controls, steam
trap replacements, plus anything else that demonstrates more efficient use of gas than
industry practices and minimum code standards. ($100-$6,000 for heating equipment).
• Solar Thermal Rebate program: rebates for solar hot water heating, solar space heating,
solar pool heating, and/or high temperature process applications. $1.50/therm of first-year
savings. Free audit.
Holyoke Gas and Electric
• Commercial Assistance program: 0% loans for water heaters, lighting, furnaces, boilers,
heat pumps, air conditioners, windows, and motors.
National Grid
• Small Business Energy Efficiency Program: 0% interest loan for lighting, lighting
controls/sensors, programmable thermostats, time clocks, occupancy sensors, and walk-in
coolers. To qualify, the small business must have an average demand use of 200 kilowatts
or less (or 40,300 kilowatt-hours or less) per month.
• Commercial Energy Efficiency Programs: (Design 2000plus program for new buildings
and major renovations, and Energy Initiative for retrofits). Offers audits, technical
assistance and rebates for commercial, industrial, schools, and local government for
lighting and controls, HVAC systems, motors, variable speed drives, compressed air,
outdoor lighting, occupancy sensors, programmable thermostats, and walk-in cooler
measures.
• Energy Wise Program: designed for condominiums and multifamily facilities to improve
their energy efficiency. National Grid provides a free energy analysis, lighting system
upgrades, and other electric efficiency measures. If the facility is electrically heated, it
Appendix A – Page 37

may also qualify for insulation and air sealing. Installation of some energy efficiency
measures requires a customer co-payment.
Bay State Gas
• Partners in Energy Program: For commercial, industrial, and multifamily residential. Free
audit and rebates for equipment insulation, water heaters, chillers, furnaces, boilers, heat
pumps, heat recovery, programmable thermostats, energy mgmt. systems/building
controls, building insulation, infrared heating systems, burners, gas-fired process
equipment, low-flow showerheads, faucet aerators, and fryers.
New England Gas
• Energy Saving Rebate Program: New England Gas Company offers its commercial
customers rebates for buying infrared heating equipment ($500) and heating
systems($750-$6,750).
NSTAR
• Commercial Energy Efficiency Rebate Programs: For commercial, industrial, schools,
local government, and institutional customers, NSTAR offers rebates for water heaters,
furnaces, boilers, motors, infrared heating systems, LED traffic signals, and vending
machines.
• Commercial Energy Solutions Program:
o Construction Solutions Program: NSTAR customers doing a wide variety of
construction projects, including developing a new campus, constructing a
building, undertaking a major renovation project, and adding new or replacing
failed equipment qualify for the Construction Solutions Program. NSTAR offers
rebates of up to 90% of the incremental cost differential for comprehensive
design, rebates up to 75% of the incremental cost differential between standard
base line and high-efficiency equipment, cost sharing for engineering services,
and design and commissioning services.
o Small Business Solutions are available to businesses whose average monthly
demand is 100 kW or less. The program starts with a free energy audit to identify
energy saving opportunities. NSTAR will pay up to 80% of the total cost for
retrofitting qualifying lighting fixtures, electronic controls, HVAC and
refrigeration, and mechanical systems.
o Custom Gas Program: NSTAR offers their commercial gas customers a Custom
Program that will pay up to 50% of the incremental cost between standard and
high-efficiency gas equipment. Eligible technologies include: Desiccant
dehumidification, condensing boilers and furnaces greater than 300,000 BTU,
direct contact water heaters, combustion controls, double-effect absorption
chillers, and waste heat recovery.
o Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Air conditioners,
Heat recovery, Compressed air, Energy Mgmt. Systems/Building Controls,
Motors, Motor-ASDs/VSDs, Custom/Others pending approval, Refrigeration,
LED Traffic Signals, Vending Machine and Cooler Sensors
Appendix A – Page 38

Unitil
• Commercial and Industrial Energy Efficiency Programs: For commercial and industrial
customers, rebates and audits and technical assistance. Small Business is 100kW or less.
Equipment includes water heaters, lighting, lighting controls/sensors, furnaces, boilers,
heat pumps, air conditioners, building insulation, motors, refrigeration, process
improvements, and infrared heating equipment.
Western Massachusetts Electric Company
• Lighting, motor, and HVAC equipment rebates are available to commercial and industrial
customers through WMECO's Express Services program. The rebates for lighting
products, with the exception of occupancy sensors, are limited to customers with peak
demand less than 350 kW.
• Reimbursement for the cost of an energy audit or focused energy study is available to
larger customers through WMECO's Custom Services program.
• The Request For Proposal program allows customers to create their own solution or
partner with an energy efficiency consultant and then compete against other projects for
financial assistance to design and implement custom-tailored projects. Eligibility is
limited to customers with peak demand greater than 350 kW and at least 100,000 kWh of
projected annual savings.
• The Small Business Energy Advantage (PDF 467 KB, 2 pp) program provides costeffective,
turnkey, energy-saving products and services for customers with average peak
demand between 11 and 100 kW. WMECO will pay up to 50 percent of the costs for
retrofit lighting measures and up to 100 percent of the costs associated with other eligible
cost-effective, energy-efficiency installation services. Energy Advantage offers a zeropercent
financing option, also.
• The Tailored HVAC Program provides one-half of the cost of a study of a facility's
related systems, paid up front by WMECO. The customer's 50 percent share will be
refunded following the installation of the recommended energy-saving measures. C&I
customers considering the purchase or replacement of HVAC equipment 30 tons or larger
or systems over 100 tons are eligible.
• The New Construction and Major Renovations reimburses customers for the incremental
difference between standard and energy efficient equipment, installed in new
construction projects or major renovations.
Structure and Governance
The Division of Energy Resources (DOER) and the Department of Telecommunications and
Energy (DTE) provide oversight and coordination all the utility programs and MassSAVE, while
electric companies, gas companies and municipal aggregators administer the programs. DOER
administers the MassSAVE clearinghouse, encourages collaboration between utilities for
services offered, and approves individual utility plans, programs, and budgets. DTE analyzes the
cost-effectiveness of each of the programs and supports the gas utility programs through ratesetting.
Appendix A – Page 39

administers
Div. of Energy
Resources
programmatic oversight
Dept. of Telecommunications
and Energy
evaluation oversight
MassSAVE
(clearinghouse for
residential customers)
Electric Utilities
(funded by SBC)
Gas Utilities (funded
through rates)
administer
EE Programs: audits
and rebates
Funding and Budget
Funding for gas utility programs is built into the rates. Funding for electric utility programs
comes from the energy efficiency system benefit charge of 2.5 mills/kWh. This has generated
$130 million since 2002, of which about $5 million has gone to MassSAVE residential
programs.
Massachusetts EE Program Budget
2006= $124,000,000 (Electricity)
Massachusetts EE Program Budget
2006= $25,000,000 (Gas)
Commercial
and
Industrial
60%
Residential
30%
Low-Income
10%
Other
40%
Residentia
l and Low-
Income
60%
Appendix A – Page 40

Program Delivery
The participating utilities hire contractors to provide the services. For example, Honeywell
provides all the conservation programs for all the gas utilities.
Monitoring and Verification
DTE analyzes the cost-effectiveness of the MassSAVE program.
Results
Cost/kWh= $0.04/kWh
In 2004, saved 66 annual MW; 421,422 annual MWh; lifetime savings of 4,796,913 MWh.
0.2
0.16
Cost of Energy Efficiency Compared to
Electricity Generation in Massachusetts
(Prices from July 2006)
0.1653
0.1588
$/kWh
0.12
0.08
0.04
0.04
0
Average Cost of EE
Programs
Price of Residential
Electricity
Price of Commercial
Electricity
Appendix A – Page 41

Massachusetts Renewable Energy Programs
Legislative/Program History
Massachusetts’ renewable energy programs are operated by the Renewable Energy Trust (the
Trust), which is run by the Massachusetts Technology Collaborative (MTC). MTC was
established in 1982 as a quasi-governmental entity to create partnerships between government,
industry, and academia to create a training facility for semiconductor technology. In 1991 MTC
received a new legislative mandate to facilitate government/industry/academia partnerships to
expand technology-based economic development in the state.
With the Electric Utility Industry Restructuring Act of 1998 the Massachusetts legislature
created a system benefits charge. The funds were placed in the Renewable Energy Trust fund
managed by MTC. “The public purpose of said trust fund shall be to generate the maximum
economic and environmental benefits over time from renewable energy to the ratepayers of the
commonwealth through a series of initiatives which exploits the advantages of renewable energy
in a more competitive energy marketplace by promoting the increased availability, use, and
affordability of renewable energy and by fostering the formation, growth, expansion, and
retention within the commonwealth of preeminent clusters of renewable energy and related
enterprises, institutions, and projects, which serve the citizens of the commonwealth.”(Ch. 25,
sect. 20(c)) The Act is at http://www.mass.gov/legis/laws/seslaw97/sl970164.htm; relevant
sections are Chapter 25, Section 20 and Chapter 40J, Section 4E.
A lawsuit filed by eight ratepayers challenging the constitutionality of the Trust delayed its
operations until 2000.
Program Goals
Trust's three major goals are:
1. Shift the state toward a greater reliance on renewable energy resources to meet energy
needs in the Commonwealth.
2. Establish Massachusetts as a national leader in the integration of high performance
building design and construction with renewable energy technologies.
3. Position Massachusetts as a global leader in the development of new clean energy
technologies that create new jobs.
Program targets include 400-500 total small renewables installed by the Small Renewables
Initiative.
Incentive Programs
Program Category Technologies Clients Description
Rebates
Small Renewables
Initiative
Loans
solar PV, small wind
(under 10kW except
under 3.5kW for
residential PV)
residential, commercial,
governmental,
institutional
base incentive is $2/W,
with additional
incentives for MAmanufactured
components, public
buildings, econ target
areas, affordable
housing, and more.
Appendix A – Page 42

Customized financial
incentives
Grants
Customized financial
incentives
wind
wind
town and municipal
governments
town and municipal
governments
matching grants green power purchasing town and municipal
governments; lowincome
serving
organizations
public awareness grants
community activists,
media consultants
for feasibility studies
and installation costs for
town and municipal
owned turbines
for feasibility studies
and installation costs for
town and municipal
owned turbines
offers grants as
incentives for residents
to purchase green power
$25k and up grants for
public awareness
campaigns and trainings
k-12 grants educators $25-50k grants for
increasing renewable
energy in k-12
curriculum
green buildings green buildings developers, schools grants for green
affordable housing and
green schools
design and construction
and feasibility
PV, wind large energy users competitive grants for
projects greater than
10kW
Service Programs
Program Category Technologies Clients Description
Information/Awareness
website information
educators, residents,
businesses
DG Collaborative interconnection utilities, ratepayers,
government
Technical Assistance
technical assistance wind town and municipal
governments
two notable website
sections: guide for
teaching renewable
energy and general
energy information
collaboration on
interconnection
standards and processes
for feasibility and
installation of town and
municipal owned
turbines
From 2000-2005 the Trust has given out over $218 million and it expects to award $164.7
million over the next five years (2005 Strategic Plan). The Trust disburses money largely
through grants, contracts, loans, rebates, and investments. The four program areas are Clean
Energy, Industry Investment and Development, Green Buildings and Infrastructure, and Policy.
Programs of interest include:
Appendix A – Page 43

• Small Renewables Initiative: provides per-watt installed rebates for renewable systems
under 10kW (under 3.5kW for residential solar). Rebates start at a base rate of $2.00/W,
to which other incentives can be added according to the following matrix:
• Large Onsite Renewables Initiative (LORI): competitive grant program for systems
greater than 10kW. Provides design and construction grants and feasibility grants.
• Community Wind Collaborative: provides technical assistance to towns interested in
wind development. Can offer grants and financing for feasibility studies and installations,
catered specifically to the town.
• Clean Energy Choice: encourages residential green power purchasing by providing
matching grants for towns and low-income organizations (grants must be used for
renewable energy projects). Also monitors and certifies REC suppliers and provides
grants for community outreach activists.
• Green Schools Initiative: provided grants for 18() schools to become Green Schools as
demonstrations. Soon to be evolving into a larger program.
• Green Affordable Housing Initiative: provides grants.
• Distributed Generation Collaborative: worked with industry leaders to establish
uniform interconnection standards and simplify the interconnection process.
Most of the other 11 Trust programs are geared toward bringing renewable energy industry to
Massachusetts. As you can see from the Trust’s three major goals, the emphasis is on renewable
energy economic development, not service to the end-users. The work of the RET staff consists
largely of managing grants, loans, and contracts; encouraging collaboration among stakeholders;
evaluating outcomes; and developing new program initiatives.
Appendix A – Page 44

Structure and Governance
The Trust is overseen by the MTC Board of Directors, which consists of senior managers from
industry, universities, and government. The Board has statutory authority and fiduciary
responsibility for the management of the Trust. A RET Committee oversees the management of
the Trust and several advisory committees support various initiatives within the Trust. 27 staff
members work for the Trust directly, not including MTC support staff and directors.
MTC Board of Directors
oversees
Massachusetts
Technology Collaborative
Other MTC
Projects
administers
administers
Renewable Energy Trust
Project
Administrators Office
Strategy and Special
Projects
Program Areas
Clean Energy
Green Buildings
and
Infrastructure
Industry Support
Policy
Funding and Budget
The Trust is funded through the system benefits charge (set at $.0005/kWh from 2003 onward, or
about $6 annually for the average residential customer) as well as ACP payments from utilities
failing to meet the RPS. ACP payments are held in a separate account, overseen by the
Massachusetts Division of Energy Resources, and used only for projects to maximize the
commercial development of new renewable energy generation facilities.
Appendix A – Page 45

Renewable Energy Trust Programs Budget\
2006=$47,803,000
8%
30%
24%
2%
11%
25%
Green Buildings Clean Energy Industry Support
Policy Multi-Program Special Opportunities
Program Delivery
Programs are managed by MTC staff but are often contracted out through grants, contracts,
loans, rebates, and investments. Some programs are handled in-house and some fully contracted
out. For example, the Small Renewables Initiative rebate program is fully managed within MTC,
but the Public Awareness Initiative operates wholly by distributing grants for media advertising,
trainings, workshops, information distribution, etc.
Monitoring and Verification
MTC is responsible for monitoring and verification of its own programs. Outside consultants are
often hired to review the effectiveness of programs. The MTC Board has responsibility for the
programs and budget.
Results
Programmatic results:
- 16 green schools (42 feasibility studies) saving approx. 30% of energy costs (average
$70,000/yr)
- 441 small renewable systems to be installed so far, with capacity of 1,873 kW, with $5.17
million in rebates to be given out (based on approved systems).
- 12 Large Onsite projects (>10kW) totaling 4MW and $6 million in grants.
- 6,572 residential and small business green power purchasers, totaling 52 GWh since Oct.
2004.
Appendix A – Page 46

Cost Premium to State for PV
(Prices from July 2006)
0.2
0.16
0.1653
0.1588
$/kWh
0.12
0.08
0.0686
0.04
0
Cost Premium f or PV
(through incentive programs)
Price of Residential
Electricity
Price of Commercial
Electricity
Levelized Cost to Consumers
(Over 25 Years)
60
Levelized Cost of Electricity
¢/kWh (2006 US$)
50
40
30
20
10
48.22
33.26
24.33
17.93
0
Commercial Building
LCOE (no deductions
or benefits)
After Massachusetts
State Rebate
After Federal Tax
Credit
After Avoided Fuel
Cost Volatility Benefit
Appendix A – Page 47

Energy Efficiency and Fuel Assistance
Massachusetts Low-Income Programs
Additional state
funding for LIHEAP
LIHEAP and WAP
funding
$
$
Low Income
Affordability Network
oversight and advocacy
Dept. of Housing and
Community Development
Community
Action Agencies
Utility Low Income Energy
Efficiency Programs
Utility Rate Discounts
administer programs
Low Income
Ratepayers
Federally Funded Programs
LIHEAP and WAP are administered through the Community Services Unit in the Department of
Housing and Community Development. The services are delivered by Community Action
Agencies (CAAs). Residents must be at 200% of the federal poverty level or lower. In 2006
LIHEAP funding totaled $82.76 million, serving 134,756 households. From the LIHEAP
funding, $8 million is dedicated to HEATWRAP, a heating system repair/replacement program.
In 2006 WAP was funded at $6.94 million.
State Funded Programs
Low-Income Energy Affordability Network
1997 legislation established the Low-Income Energy Affordability Network (LEAN) as a
collaborative organization to oversee all low-income energy services. LEAN works to ensure
that all of the services are coordinated, cost-effective, high-quality, convenient, and accessible.
LEAN also negotiates on behave of low-income ratepayers in rate cases. LEAN is composed of
representatives of all the low-income agencies in the state and others.
State Additional Funding
Massachusetts added $7.5 million to LIHEAP in 2005
Utility Rate Discounts
All utilities (gas and electric) are required to offer rate discounts for residents at 175% of poverty
level (from 1997 restructuring law for electric utilities and from regulation of gas utilities). In
Appendix A – Page 48

2004 this totaled $42.5 million for both gas and electric. Discounts for customers range from
20% to 42% of their bills.
Utility Low-Income Energy Efficiency Programs
All utilities also offer EE services for ratepayers who qualify for the discounted rate. All of the
low-income services are administered through the local Community Action Programs (CAPs).
Electric utility programs are paid for by the energy efficiency SBC, set at 2.5 mills, of which .25
mills must go to low-income programs (ACEEE, 2004). In 2005 this was about $14 million. For
gas utilities, a conservation charge is built into the rate for about $7 million in 2005. The total
spending for gas and electric utilities was $21.2 million in 2005.
Services vary by the utility and include audits, free weatherization (insulation, air sealing, and
heating system replacement), efficiency lighting, clock thermostats, and appliance management.
Several utilities, the Department of Housing and Community, LEAN, and local Massachusetts
CAPs have joined together to target 16 metropolitan areas through a marketing campaign and
information clearinghouse called Energy Bucks (www.energybucks.com). The aim is to better
inform eligible ratepayers about the low income services available.
National Grid Appliance Management Program (AMP): This program is administered through
the local CAPs and only applies to National Grid customers. National Grid provides funding for
home appliance surveys, education about energy use of appliances, and appliance energy
efficiency installations. The AMP program is unique in the delivery of the services: the service
personnel work closely with the homeowner in a co-learning atmosphere, instead of dictating
behaviors or making adjustments for the client. National Grid spends about $4.5 million each
year on AMP.
AMP results from 1996 to 2004 (includes RI and NH results also):
• 30,923 households
• Cumulative annualized savings: 32,766 MWh
• Cumulative lifetime savings: 425,638 MWh
• Benefit/Cost ratio of 2.56
NSTAR Gas Residential Low-Income Program: NSTAR provides up to $4,500 per household
for audits, insulation, air sealing, heating system repair or replacement, and safety inspections.
The program is run through the South Middlesex Opportunity Council and services are delivered
by local CAPs.
NSTAR results:
From 2001 to 2003:
• Saved over 96,500 therms annually
• Served 770 customers
From 1997 to 2003:
• Saved 340,764 annual therms cumulatively
• Served 1,876 customers
Lifetime impacts for multifamily housing, 2003-2017:
• Benefits: $1,469,947
Appendix A – Page 49

• Costs: $922,450
• B/C ratio: 1.59
Lifetime impacts for single-family homes, 2003-2017:
• Benefits: $3,430,797
• Costs: $1,668,747
• B/C ratio: 2.06
Combined Program Results
Total annual funding for low-income energy programs is $160.9 million. Approximately 134,000
households receive fuel assistance annually, reducing the average household bill by 20%-42%.
Massachusetts Low Income Programs
Total Annual Funds = $160,000,000
$21,200,000
$42,500,000
$82,760,000
$7,500,000
$6,940,000
LIHEAP
State Supplement for LIHEAP
Utility LI EE Programs
WAP
Utility Rate Discounts
Low Income Renewable Energy Programs
All of these programs are administered by the Renewable Energy Trust at the Massachusetts
Technology Collaborative (MTC). The Trust is funded through a system benefits charge.
Clean Energy Choice
When residents purchase green energy through the Clean Energy Choice program (CEC), the
Massachusetts Technology Collaborative (MTC) provides two sets of matching grants, based on
the amount of money residents spend on new, RPS-eligible RECs. One matching grant is the
Low Income matching grant, which is held in a special low-income account. When enough
money accumulates (over $700,000 so far), MTC issues a solicitation for renewable energy
projects that benefit low-income populations. In the first round of the solicitation in early 2006
MTC awarded grants to three organizations (a food bank, a Boys and Girls Club, and a senior
center) geographically spread throughout Massachusetts. The grants will help install solar PV
systems and increase the efficiency of the buildings and operations. The grants are intended to
both encourage renewable energy and enable the organizations to lower their energy bills and
thus provide low-income services more effectively.
Appendix A – Page 50

Green Affordable Housing Initiative
Within this Initiative, MTC is part of the Massachusetts Green Communities partnership with
MassHousing and Enterprise Community Partners. MTC offers feasibility, design, and
construction grants for large multifamily affordable housing units to be designed as green
buildings meeting EnergyStar standards. MTC will award up to $30,000 for feasibility studies,
$50,000 for renewable energy system design, and $500,000 for renewable energy system
installation. MTC also awards grants to organizations which plan green housing development,
such as green developers and Boston’s Department of Neighborhood Development. These grants
range from $1.5 million to $5 million for projects such as demonstration pilot programs,
renewable and green building incentive programs, and incorporation of green building aspects to
existing affordable housing programs. MTC has awarded $14.5 million so far through this
initiative.
Small Renewables Initiative
This program offers rebates for solar, wind, and small hydro installations on affordable housing.
For buildings with 20%-50% low-income/affordable housing the rebate rate is $1/W; for 50% or
greater the rate is $2.50/W. For residents and businesses installing PV, wind, or small hydro in
certain economic target areas (towns and cities), the rebate is increased by $1/W (base rate is
$2/W).
Appendix A – Page 51

New Jersey Clean Energy Program – Energy Efficiency
Enabling Legislation:
The NJ Clean Energy Program (‘CEP’) originated from provisions in the Electric Discount and Energy
Competition Act, N.J.S.A. 48:3-49 et seq., the gas and electric deregulation legislation that was signed
into law Feb 9, 1999. The Board of Public Utilities (‘BPU’) underwent a rulemaking process known as
the Comprehensive Resource Analysis to establish the regulations that govern the Clean Energy Program.
Organizational Structure:
The New Jersey Clean Energy Program currently is undergoing reorganization to improve
service delivery. The key changes are the creation of a Clean Energy Program trust fund to
remove geographic limits and the transition to third-party management of certain initiatives. The
following chart shows the proposed CEP structure.
Organizational Structure:
NJ Clean Energy Program Administrative Structure incorporating 3 rd party management.
Clean
Energy
Council
advises
Board of Public Utilities
program evaluation activities
Office of
Clean
Energy
pays
policy and procedure development
Program Contract Manager
(state employee)
directs
oversees
Evaluation
coordination:
CEEEP at Rutgers.
Economic
Development
Authority programs
(loans related)
Dept. of Environmental
Protection programs
(urban forests)
Utilities (Comfort
Partners) and Dept.
of Community
Affairs programs
NJ Clean
Energy
Program
Trust Fund
(SBC funds
collected
by utilities)
Fiscal Agent
(NJ Dept. of
Treasury)
pays
Market Manager:
Residential
(3 rd party)
Program Coordinator
(3 rd party)
coordinates, oversees, and
evaluates
Market Manager:
Commercial and
Industrial (3 rd party)
Market Manager:
Renewable Energy
(3 rd party)
Sources: NJCEP Market Managers and Program Coordinator RFPs.
The Board of Public Utilities administers the Clean Energy Program and oversees the regulatory
process governing the Program. The Clean Energy Council advises the BPU on the design,
budgets, objectives, goals, administration, and evaluation of the Clean Energy Program. The
Clean Energy Council is made of stakeholders in industry, government, environmental groups,
Appendix A – Page 52

citizens, and other interested parties. The BPU will receive program evaluation coordination
assistance from the Center for Energy, Economic & Environmental Policy at Rutgers University.
The Office of Clean Energy carries out and enforces the regulations created by the BPU. It will
work with the third-party Program Coordinator to develop policies and procedures to carry out
the Clean Energy Program. The Office of Clean Energy also will interface with the CEP
Contract Manager and coordinate the CEP initiatives still run by state agencies and utilities. The
Contract Manager will oversee the third-party management and also the fiscal agent, who
controls the Clean Energy Program trust fund that pays for all CEP initiatives.
The proposed third-party management will take on the work currently performed by staff at the
Office of Clean Energy and by the utilities. The Program Coordinator will work with three
Market Managers (Residential, Commercial and Industrial, and the Renewable Energy) to design
and carry out CEP initiatives.
Budget and Funding Sources:
4.3%
3.1%
NJ CEP Program Budget
2005=$128,645,000
11.8%
Residential HVAC - Electric &
Gas
Residential New Construction
Energy Star Products
30.7%
21.5%
Residential Low Income
Other Residential
1.7%
19.6%
7.2%
Commercial/Industrial
Construction
Cool Cities
Other EE programs
Source: NJ BPU Sept. 14, 2006 Order on Docket EX04040276
The Clean Energy Program is funded by a Societal Benefits Charge (‘SBC’). The SBC is
collected as a non-bypassable charge imposed on all customers of New Jersey's seven investorowned
electric public utilities and gas public utilities. Through rulemaking, the BPU determines
the amount that will be collected. A total of $358 million was collected in 2001, 2002 and 2003,
while $124 million was collected 2004 (Table 1). A total of $745 million will be collected in
2005, 2006, 2007 and 2008 (Table 2).
The CEP budget is set by the BPU via rulemaking. The budget can often be larger than annual
collections due to carryover from previous years. Actual program expenditures vary depending
on consumer interest and factors such as the federal tax credit. For FY 2005, spending for
energy efficiency programs was $85.4 million on a budget of $113.8 million or 75%.
Appendix A – Page 53

The SBC rate will depend on the amount to be collected from each utility and the size of the
annual CEP budget. The ACEEE estimated the mill rate to be $0.00122/kWh for energy
efficiency and $0.00041/kWh for renewable energy. There is also a low-income energy funding
of $0.00014/kWh. The total funding for the three SBC program equals 1.89% of utility revenues
(ACEEE 2006).
Table 1: Clean Energy Program Funding Levels (2001-2004)
Year Total Funding Level Energy Efficiency % of Total Renewable Energy % of Total
2001 $115,000,000 $86,250,000 75% $28,750,000 25%
2002 $119,000,000 $89,250,000 75% $29,750,000 25%
2003 $124,126,000 $93,095,000 75% $31,031,000 25%
2004 $124,126,000 $93,095,000 75% $31,031,000 25%
Total $482,252,000 $361,690,000 75% $120,562,000 25%
(Source: 2004 CEP Straw Proposal)
Table 2: Clean Energy Program Funding Levels (2005-2008)
Year Total Funding Level Energy Efficiency % of Total Renewable Energy % of Total
2005 $140,000,000 $103,000,000 74% $37,000,000 26%
2006 $165,000,000 $113,000,000 68% $52,000,000 32%
2007 $205,000,000 $123,000,000 60% $82,000,000 40%
2008 $235,000,000 $133,000,000 56% $102,000,000 44%
Total $745,000,000 $472,000,000 63% $273,000,000 37%
(Source: BPU Docket EX04040276)
Program Targets:
Three objectives were adopted May 7, 2004 for the Clean Energy Program:
1. By December 31, 2008, 6.5% of the electricity used by New Jersey residents and businesses will
be provided by Class I and/or Class II renewable energy resources, of which a minimum of 4%
will be from Class I renewable energy resources.
2. By December 31, 2008, install 300 MW of Class I renewable electric generation capacity in New
Jersey, of which a minimum of 90 MW will be derived from photovoltaics.
3. By December 31, 2012, 785,000 Megawatt hours per year and 20 billion cubic feet gas per year
of energy savings will be derived from energy efficiency and renewable energy measures.
Appendix A – Page 54

Program Accomplishments:
NJ CEP: Program Cost per kWh Saved (2005)
$0.140
$0.120
$0.100
$0.080
$0.060
$0.040
$0.020
$0.000
$0.024
Average Cost of
Energy Savings
($/kWh)
$0.089
Industrial Electric
Rate ($/kWh)
$0.098
Commercial
Electric Rate
($/kWh)
$0.115
Residential
Electric Rate
($/kWh)
NJ CEP: Program Cost per ccf Saved (2005)
$1.40
$1.32
$1.20
$1.00
$0.80
$0.68
$0.88
$0.60
$0.40
$0.20
$0.22
$0.00
Average Cost of
Energy Savings
($/ccf)
Industrial Gas
Rate ($/ccf)
Commercial Gas
Rate ($/ccf)
Residential Gas
Rate ($/ccf)
Table 3: NJ CEP Annual Electric Bill Savings (2001-2005)
Electric
Programs
Annual Savings
from Measures
Installed (kWh)
Average Retail
Price ($/kWh)
Annual Bill
Reduction to NJ
Customers ($)
2001 54,969,000 $0.100 $5,496,900
2002 171,692,000 $0.100 $17,169,200
2003 292,815,000 $0.100 $29,281,500
2004 335,027,000 $0.100 $33,502,700
2005 441,982,000 $0.100 $44,198,200
Source: CEP Annual Reports, EIA: State Electric Profile
Appendix A – Page 55

Table 4: NJ CEP Annual Gas Bill Savings (2001-2005)
Gas Programs
Annual Savings
from Measures
Installed (ccf)
Average Retail
Price ($/ccf)
Annual Bill
Reduction to NJ
Customers ($)
2001 2,707,620 $1.00 $2,707,620
2002 6,232,830 $1.00 $6,232,830
2003 4,105,170 $1.00 $4,105,170
2004 4,327,580 $1.00 $4,327,580
2005 6,172,610 $1.00 $6,172,610
Program Profiles
Energy Efficiency Incentive Programs: Managed by Utilities
Program
Category
Rebates
Warm
Advantage and
Cool Advantage
New Jersey
Energy Star
Technologies Clients Description
Heating and cooling equipment.
http://www.njcleanenergy.com/residential.html
- $300-$450 for central AC or heat pumps
(SEER>=14 and EER>=12).
- $500/ton for geothermal heat pump (EER>=13.0)
- $20/unit for Energy Star rated window AC.
- $50 for water heater (0.62 energy factor).
- $300 boiler (85% AFUE)
- $300 furnace (90% AFUE)
- $400 furnace with ECM (Electronic Commutated
Motor) (92% AFUE)
Windows, appliances and lighting
Note: 2006 Program still being developed.
Grants and Other Incentives
New Jersey New construction homes
Energy Star http://www.njenergystarhomes.com
Homes
Combined Heat
and Power
CHP
http://www.njcleanenergy.com/ci.html
Residential
Residential
Builders
Commercial
Rebates to
promote energyefficient
heating
and cooling
equipment in
homes.
Marketing and
outreach effort
about home
energy efficiency
and appliance
and lighting
rebates through
major retailers.
Incentives for
new construction
in Smart Growth
Areas. Homes
must achieve 85
out of 100 in the
Home Energy
Rating System
(HERS).
Incentives to
purchase and
Appendix A – Page 56

Incentives capped $1 million per applicant and 30% to
40% per project.
- Level I: $4/watt for fuel cells not fueled by Class I
renewable fuel,
- Level II: $1/watt for microturbines, internal
combustion engines, and gas combustion turbines,
- Level III: $0.50/watt for heat recovery or other
mechanical recovery electric generation equipment.
install various
types of CHP
units.
Energy Efficiency Service Programs: Managed by Utilities
Program
Category
Audits
Home Energy
Analysis
Online audit
Technologies Clients Description
http://www.njcleanenergy.com/home_analysis.html
Technical Assistance and Other Services
New Jersey High-efficiency lighting, heating and cooling equipment.
SmartStart Retrofits and new construction.
Buildings
Program http://www.njsmartstartbuildings.com
Electric Chillers
- Water-cooled chillers ($12 - $170 per ton)
- Air-cooled chillers ($8 - $52 per ton)
Gas Cooling
- Gas absorption chillers ($185-$450 per ton)
- Gas Engine-Driven Chillers (Calculated through Custom
Measure Path)
- Desiccant Systems ($1.00 per cfm - gas or electric)
Electric Unitary HVAC
- Unitary AC and split systems ($73 - $92 per ton)
- Air-to-air heat pumps ($73 - $92 per ton)
- Water-source heat pumps ($81 per ton)
- Packaged terminal AC & HP ($65 per ton)
- Central DX AC Systems ($40 - $72 per ton)
- Dual Enthalpy Economizer Controls ($250)
Ground Source Heat Pumps
- Closed Loop & Open Loop ($370 per ton)
Residential
Schools,
commercial,
industrial,
institutional,
governmental,
and
agricultural.
Online energy
audit for
residential
customers.
Analysis is
linked to
incentives and
Energy Star
rebates.
Provides
incentives and
technical
assistance for
new and retrofit
upgrades.
Appendix A – Page 57

Gas Heating
- Gas-fired boilers < 300 MBH ($300 per unit)
- Gas-fired boilers ≥ 300 MBH - 1500 MBH ($1.75 per
MBH)
- Gas-fired boilers ≥ 1500 MBH - ≤ 4000 MBH ($1.00 per
MBH)
- Gas-fired boilers > 4000 MBH (Calculated through
Custom Measure Path)
- Gas furnaces ($300-$400 per unit)
Variable Frequency Drives
- Variable air volume ($65 - $155 per hp)
- Chilled-water pumps ($60 per hp)
Natural Gas Water Heating
- Gas water heaters ≤ 50 gallons ($50 per unit)
- Gas-fired booster water heaters > 50 gallons ($1.00 -
$2.00 per MBH)
- Gas-fired booster water heaters ($17 - $35 per MBH)
Premium Motors
- Three-phase motors ($45 - $700 per motor)
Prescriptive Lighting
- T-5 and T-8 lamps with electronic ballast in existing
facilities ($10 - $20 per fixture)
- Hard-wired compact fluorescent ($25 - $30 per fixture)
- Metal halide w/pulse start ($45 per fixture)
- LED Exit signs ($20 per fixture)
- T-5 and T-8 High Bay Fixtures (New Fixtures meeting
requirement 8.1 on application. $50 per fixture)
- T-5 and T-8 High Bay Fixtures (New Fixtures meeting
requirement 8.2 on application. $75 per fixture)
LED Traffic Signal Lamps
- 8-inch red or green ($20 per lamp)
- 12-inch red or green ($35 per lamp)
- Pedestrian Signal Lamp ($20 per fixture)
Lighting Controls
Occupancy Sensors
- Wall mounted ($20 per control)
- Remote mounted ($35 per control)
- Daylight dimmers ($25 per fixture controlled)
- Occupancy controlled hi-low fluorescent controls ($25
per fixture controlled)
HID or Fluorescent Hi-Bay Controls
- Occupancy hi-low ($75 per fixture controlled)
- Daylight dimming ($75 per fixture controlled)
Other Equipment Incentives
- Performance Lighting ($1.00 per watt per square foot
below program incentive threshold, currently 20% more
energy efficient than ASHRAE 90.1-1999 for New
Construction and Major Renovation and 10% more
Appendix A – Page 58

energy efficient than ASHRAE 90.1-1999 for Existing
Facilities.)
- Custom electric and gas equipment incentives (not
prescriptive)
Weatherization
New Jersey
Comfort
Partners
Home
Performance
for Energy
Star
Weatherization, HVAC repair/replacement, and highefficiency
lighting and appliances.
Weatherization, doors and windows, and high-efficiency
appliances.
Low and
moderate
income
residential
Residential
Install energy
saving
measures at no
cost to
household with
an income at or
below 175% of
federal poverty
guidelines.
Certified
contractors
work with
homeowners to
audit energy use
and make
improvements.
Integrated with
financing.
Appendix A – Page 59

New Jersey Clean Energy Program: Renewable Energy
Enabling Legislation:
The NJ Clean Energy Program (‘CEP’) originated from provisions in the Electric Discount and
Energy Competition Act, N.J.S.A. 48:3-49 et seq., the gas and electric deregulation legislation
that was signed into law Feb 9, 1999. The Board of Public Utilities (‘BPU’) underwent a
rulemaking process known as the Comprehensive Resource Analysis to establish the regulations
that govern the Clean Energy Program.
Organizational Structure:
The New Jersey Clean Energy Program currently is undergoing reorganization to improve
service delivery. The key changes are the creation of a Clean Energy Program trust fund to
remove geographic limits and the transition to third-party management of certain initiatives. The
following chart shows the proposed CEP structure.
Organizational Structure:
NJ Clean Energy Program Administrative Structure incorporating 3 rd party management.
Clean
Energy
Council
advises
Board of Public Utilities
program evaluation activities
Office of
Clean
Energy
pays
policy and procedure development
Program Contract Manager
(state employee)
directs
oversees
Evaluation
coordination:
CEEEP at Rutgers.
Economic
Development
Authority programs
(loans related)
Dept. of Environmental
Protection programs
(urban forests)
Utilities (Comfort
Partners) and Dept.
of Community
Affairs programs
NJ Clean
Energy
Program
Trust Fund
(SBC funds
collected
by utilities)
Fiscal Agent
(NJ Dept. of
Treasury)
pays
Market Manager:
Residential
(3 rd party)
Program Coordinator
(3 rd party)
coordinates, oversees, and
evaluates
Market Manager:
Commercial and
Industrial (3 rd party)
Market Manager:
Renewable Energy
(3 rd party)
Sources: NJCEP Market Managers and Program Coordinator RFPs.
The Board of Public Utilities administers the Clean Energy Program and oversees the regulatory
process governing the Program. The Clean Energy Council advises the BPU on the design,
budgets, objectives, goals, administration, and evaluation of the Clean Energy Program. The
Clean Energy Council is made of stakeholders in industry, government, environmental groups,
citizens, and other interested parties. The BPU will receive program evaluation coordination
assistance from the Center for Energy, Economic & Environmental Policy at Rutgers University.
Appendix A – Page 60

The Office of Clean Energy carries out and enforces the regulations created by the BPU. It will
work with the third-party Program Coordinator to develop policies and procedures to carry out
the Clean Energy Program. The Office of Clean Energy also will interface with the CEP
Contract Manager and coordinate the CEP initiatives still run by state agencies and utilities. The
Contract Manager will oversee the third-party management and also the fiscal agent, who
controls the Clean Energy Program trust fund that pays for all CEP initiatives.
The proposed third-party management will take on the work currently performed by staff at the
Office of Clean Energy and by the utilities. The Program Coordinator will work with three
Market Managers (Residential, Commercial and Industrial, and the Renewable Energy) to design
and carry out CEP initiatives.
Budget and Funding Sources:
NJCEP RE Program Budget
2006=$170,469,000
13%
1%
1%
EDA Programs (commercial
loans and grants)
Clean Power Choice
85%
SUNLIT (low-income
renewables)
Customer On-site Renewable
Energy (CORE)
14, 2006 Order on Docket EX04040276
Source: NJ BPU Sept.
The Clean Energy Program is funded by a Societal Benefits Charge (‘SBC’). The SBC is
collected as a non-bypassable charge imposed on all customers of New Jersey's seven investor-
the amount that will be collected. A total of $358 million was collected in 2001, 2002 and 2003,
owned electric public utilities and gas public utilities. Through rulemaking, the BPU determines
while $124 million was collected 2004 (Table 1). A total of $745 million will be collected in
2005, 2006, 2007 and 2008 (Table 2).
The CEP budget is set by the BPU via rulemaking. The budget can often be larger than annual
collections due to carryover from previous years. Actual program expenditures vary depending
on consumer interest and factors such as the federal tax credit. For FY 2005, spending for
renewable energy programs was $35.5 million on a budget of $120.2 million or 29.5%.
The SBC rate will depend on the amount to be collected from each utility and the size of the
annual CEP budget. The ACEEE estimated the mill rate to be $0.00122/kWh for energy
efficiency and $0.00041/kWh for renewable energy. There is also a low-income energy funding
of $0.00014/kWh. The total funding for the three SBC program equals 1.89% of utility revenues
(ACEEE 2006).
Appendix A – Page 61

Table 1: Clean Energy Program Funding Levels (2001-2004)
Year Total Funding Level Energy Efficiency % of Total Renewable Energy % of Total
2001 $115,000,000 $86,250,000 75% $28,750,000 25%
2002 $119,000,000 $89,250,000 75% $29,750,000 25%
2003 $124,126,000 $93,095,000 75% $31,031,000 25%
2004 $124,126,000 $93,095,000 75% $31,031,000 25%
Total $482,252,000 $361,690,000 75% $120,562,000 25%
(Source: 2004 CEP Straw Proposal)
Table 2: Clean Energy Program Funding Levels (2005-2008)
Year Total Funding Level Energy Efficiency % of Total Renewable Energy % of Total
2005 $140,000,000 $103,000,000 74% $37,000,000 26%
2006 $165,000,000 $113,000,000 68% $52,000,000 32%
2007 $205,000,000 $123,000,000 60% $82,000,000 40%
2008 $235,000,000 $133,000,000 56% $102,000,000 44%
Total $745,000,000 $472,000,000 63% $273,000,000 37%
(Source: BPU Docket EX04040276)
Program Targets:
Three objectives were adopted May 7, 2004 for the Clean Energy Program:
4. By December 31, 2008, 6.5% of the electricity used by New Jersey residents and businesses will
be provided by Class I and/or Class II renewable energy resources, of which a minimum of 4%
will be from Class I renewable energy resources.
5. By December 31, 2008, install 300 MW of Class I renewable electric generation capacity in New
Jersey, of which a minimum of 90 MW will be derived from photovoltaics.
6. By December 31, 2012, 785,000 Megawatt hours per year and 20 billion cubic feet gas per year
of energy savings will be derived from energy efficiency and renewable energy measures.
Appendix A – Page 62

Program Accomplishments:
NJ CEP CORE Installed Capacity
(2001 through August 2006)
26,565 kW
Wind
10%
Biomass
8%
Wind
Biomass
Solar PV
Solar PV
82%
Cost Premium to State for PV
(Prices from July 2006)
0.16
0.1461
0.1416
0.12
0.1146
$/kWh
0.08
0.04
0
Cost Premium for PV (through
incentive programs)
Price of Residential Electricity
Price of Commercial Electricity
Program Profiles
Renewable Energy Incentive Programs: Managed by Office of Clean Energy
Program Category Technologies Clients Description
Rebates
Customer On-Site
Renewable Energy
Program (CORE)
Renewables: solar, small
wind, and sustainable
biomass.
All sectors. Residential
tariff customers are
limited to rebate for 10
kW of capacity.
Rebates up to 70% of
the installed cost of
solar, small wind and
sustainable biomass
system.
Loans
Clean Energy Financing Energy efficiency and Commercial Low-interest loans for
Appendix A – Page 63

for Businesses renewable energy small businesses that
implement energy
efficiency upgrades and
renewable energy
installations.
Clean Energy Financing
for Schools & Local
Governments
Energy efficiency and
renewable energy
Grants and Other Incentives
Renewable Energy Large-scale renewable
Project Grants & energy
Financing
Schools and
governmental
Renewable energy
developer
Incentives and lowinterest
financing for
local governments and
schools that combine
energy efficiency and
renewable energy
projects.
Competitive financing
and incentives for up to
20% of project costs for
projects larger than 1
MW.
Renewable Energy Service Programs: Managed by Office of Clean Energy
Program Category Technologies Clients Description
Information/Awareness
CleanPower Choice
Program
Clean power marketing All sectors A voluntary program
that gives retail
electricity customers the
option to sign up for
clean power directly
through their local
Education and Outreach
Grants
Technical Assistance and Other Services
Renewable Energy Renewable energy
Business Venture
Assistance
SREC Exchange
Solar Renewable Energy
Certificate (SREC)
Program
electric utility.
Education and Outreach Nonprofit organizations Grants available to NJ
nonprofit organizations
to conduct outreach and
promote clean energy.
Online exchange service
for Solar RECs
Renewable energy
businesses
All sectors
Technical assistance and
venture capital funding
for clean energy
businesses.
Provides online platform
for the registration,
verification, and sale of
SRECs for solar owners,
aggregators and brokers.
Appendix A – Page 64

New Jersey Low Income Energy Efficiency and Fuel Assistance
Programs
Federally Funded Programs
Low Income Home Energy Assistance Program (LIHEAP)
(FY 2006 Funding: $77,346,024)
The NJ Department of Human Services, Division of Family Development administers the
Low Income Home Energy Assistance Program (LIHEAP) in New Jersey. Applications
are accepted and processed by non-profit organizations under contract in each of the 21
counties in the state. The same application form applies for three energy programs:
energy assistance, weatherization assistance, and the state funded Universal Service
Fund. Income eligibility for all three programs is household income at or below 175% of
federal poverty guidelines. The amount of the energy assistance benefit is determined by
the applicant’s income, household size, fuel type, and heating region.
LIHEAP FY 2005 Benefits:
Heating: $51min, $400 average, $1,138 max
Cooling: $100 flat benefit for medically necessary cooling
LIHEAP NJ Households Served (estimate for FY2005 heating): 154,000
Weatherization Assistance Program (WAP)
(FY 2006 Funding: $5,266,959)
The NJ Department of Community Affairs, Division of Community Resources,
administers the Weatherization Assistance Program. Weatherization services may
include efficient lighting products, hot water conservation measures, appliance
replacement, programmable thermostats, insulation upgrades, air sealing, duct sealing
and repair, and heating/cooling equipment maintenance, repair and/or replacement.
Eligible households apply to the WAP using the same form as for energy assistance
(LIHEAP) and Universal Service Fund. Household income must be at or below 175% of
federal poverty guidelines to qualify for the program.
In 2004, the NJ WAP received $5,102,876 from the Department of Energy and 1,632 NJ
households received weatherization services. Up to 25% of annual LIHEAP funding may
be directed towards WAP services.
State Funded Programs
Appendix A – Page 65

Universal Service Fund (USF)
(PY 2006-2007 funding: $156.4 million)
The deregulation legislation (N.J.S.A. 48:3-49 § et seq.) required the NJ Board of Public
Utilities (‘BPU’) to establish a non-lapsing Universal Service Fund (USF) to assist lowincome
consumers with the payment of electric and gas bills. In June 2004, the BPU
approved funding for the state’s 2004-2005 USF low-income energy assistance program,
which began in October 2003. Funding for the USF comes from a SBC on gas and
electric sales.
The NJ Department of Human Services, Division of Family Development, administers
the Universal Service Fund. Households eligible for the USF would pay no more than
6% of their annual income for their combined natural gas and electric services. The USF
benefit appears as a credit on utility bills. Annual USF credits are capped at $1,800 per
household.
To be eligible for USF, the applicant must meet two qualifications:
1. Household income must be at or below 175% of federal poverty guidelines; and,
2. The household must spend more than 3% of household income for electric service
or more than 3% of household income for natural gas service. If the household
has electric heat, it must spend more than 6% of household income on electricity.
In FY 2005, the USF spent about $74 million on credits and served 120,000 households
for an average bill reduction of $617 per household.
New Jersey Lifeline
(PY 2006-2007 funding: $72 million)
Funding for the NJ Lifeline comes from a SBC on gas and electric sales. Prior to 2003,
the Lifeline program was funded by NJ general funds.
The NJ Department of Health and Senior Services administer the New Jersey Lifeline
and processes the applications. The Lifeline benefit is a $225 yearly credit for a
qualifying household’s electric or gas bill ($225 for electric use only or $112.50 on each
of the gas and electric accounts). To qualify, the applicant must be 65 years old, or a
disabled adult at least 18 years old who is receiving Social Security Disability benefits.
In 2005, NJ Lifeline’s $72 million budget provided an annual energy bill credit of $225
to about 319,000 low-income seniors and disabled residents.
Appendix A – Page 66

Table 1: New Jersey USF/Lifeline Program Funding
Program Year Statewide Collection
or Budget ($millions)
USF/Lifeline rate
Electric ($/kWh)
USF/Lifeline rate
Gas ($/therm)
USF & Lifeline USF Lifeline USF Lifeline
2004 to 2005 $142.9 $0.000946 $0.000710 $0.0093 $0.0043
(both programs)
2005 to 2006 $111 $71 $0.000946 $0.000710 $0.0093 $0.0043
2006 to 2007 $156.4 $72 $0.000637 $0.000674 $0.0229 $0.0046
Note: USF/Lifeline rate includes NJ Sales and Use Tax (SUT), a fee of 6%.
Source: LIHEAP Clearinghouse and 2006 USF/SBC Annual Compliance Filing. Docket
No. ER06070525
NJ Comfort Partners
(FY 2006 funding: $21.3 million)
The NJ Comfort Partners is part of the NJ Clean Energy Program created under New
Jersey's restructuring legislation and is funded by a SBC.
New Jersey Comfort Partners program is administered by the gas and electric utilities
under the NJ Clean Energy Program. Energy efficiency measures provided are similar to
the Weatherization Assistance Program. Energy education and counseling and arrearage
forgiveness for participants who agree to payment plans are also included.
Residents apply directly to the utilities to participate in the Comfort Partners program.
Eligibility is limited to households with income at or below 175 % of federal poverty
guidelines or those who receive specific social services.
2005 Comfort Partners Program Expenditure: $15,467,000
Table 2: 2005 Comfort Partners Energy Savings
Annual Electric Savings Annual Gas Savings
Participants MWh kW CCF
6,403 5,636 569 487,330
Source: 2005 NJ CEP Annual Report
Appendix A – Page 67

Summary Of New Jersey Low Income Energy Programs
Table 3: NJ Low Income Energy Efficiency and Fuel Assistance Programs
Program Funding
(2006)
Funding
Source
Administration Clients
Served
(2005)
Low Income
Home Energy
Assistance
(LIHEAP)
Weatherization
Assistance
Program
(WAP)
Universal
Service Fund
(USF)
$77,346,024 Federal Department of
Human
Services
$5,266,959 Federal Department of
Community
Affairs
$156,400,000 SBC Department of
Human
Services
NJ Lifeline $72,000,000 SBC Department of
Health and
Senior Services
NJ Comfort
Partners
(Part of NJ
Clean Energy
Program)
$21,300,000 SBC Gas and electric
utilities
Average
Savings
Per
Client
154,000 $400
1,632
(2004)
460
kWh/year
91
ccf/year 1
120,000 $617
319,000 $225
6,403 880
kWh/year
76
ccf/year
1 NJ LIWAP and NJ Comfort Partners Comparison of Programs and Evaluation Findings. APPRISE, 2004.
Appendix A – Page 68

New York Energy Efficiency and Renewable Energy Programs
(Draft – To Be Updated in January 2006)
Structure and Governance
The State of New York has three organizations that are responsible for energy efficiency and
renewable energy, namely the New York State Energy Research and Development Authority
(NYSERDA), the Long Island Power Authority (LIPA), and the New York Power Authority
(NYPA). NYSERDA also administers the following companies’ energy efficiency and
renewable energy programs: Consolidated Edison, Orange and Rockland, Niagra Mohawk,
Central Hudson Gas and Electric, National Grid, and Rochester Gas and Electric. LIPA operates
as its own non-profit energy supplier. NYPA oversees the power needs of New York’s public
schools, government buildings, and some municipalities including New York City. Because
NYSERDA is the largest energy R&D organization in New York, LIPA and NYPA both
voluntarily donate money to NYSERDA in return for cooperation on energy projects.
New York is different from other restructured states in that the New York Public Service
Commission (PSC) rather than the state legislature has spearheaded and directed the
restructuring process. It is also different in that the PSC has created a broad-based, multi-utility
system benefits fund for energy efficiency, including low-income programs, but rate assistance
programs have been designed and implemented on a utility-by-utility basis as part of individual
utility restructuring or rate case settlements.
Dept. of Public
Service
NYSERDA
collaboration
Long Island
Power Authority
collaboration
New York Power
Authority
administers
administers
administers
All EE programs for
the six major utilities
LIPA EE
programs
NYPA EE
programs
Energy Smart
Program
Renewable
Portfolio
Standards
Other programs,
(RD&D, Energy
Analysis)
NYSERDA Overview
The New York State Energy Research and Development Authority (NYSERDA) is a public
benefit corporation created in 1975 by the New York State Legislature. NYSERDA was initially
Appendix A – Page 69

established to assume the duties and holdings of the Atomic and Space Development Authority
(including the nation's only commercial nuclear fuel processing plant at West Valley). Since
1998, NYSERDA has administered the New York Energy $mart Programs – New York’s
statewide energy efficiency service program – in cooperation with the Public Service
Commission. NYSERDA also uses its bonding authority to finance environmental and energy
efficiency upgrades to the State’s existing energy infrastructure.
NYSERDA Program Administration
• NYSERDA uses an open, stakeholder-driven planning process to develop and implement
its various programs. Each program area has a Program Review Group, composed of
experts outside of NYSERDA, evaluates program performance, makes recommendations
on whether or not programs are meeting their goals and objectives, and provides
continuing feedback on how programs should evolve.
• NYSERDA issues competitive solicitations to streamline the procurement process and
ensure optimal use of funding resources. NYSERDA selects more than 97 percent of its
projects competitively.
• NYSERDA relies on peer reviews and performance measures in its selection of projects.
Technical evaluation panels are composed of NYSERDA staff and third-party experts
who review proposed projects. Third-party experts comprise the majority of these
technical evaluation panels. NYSERDA senior management and staff provide a second
review before the President or his designee awards project contracts.
• NYSERDA programs are subject to independently contracted cost-effectiveness
evaluations.
Funding and Budget
New York's system benefits charge (SBC), established in 1996 by the New York Public Service
Commission (PSC), supports energy efficiency, renewable energy, education and outreach,
research and development, and low-income energy assistance. To support the SBC program, the
state's six investor-owned electric utilities collect funds from customers through a surcharge on
customers' bills. Each year from 2006-2011, each utility must collect and remit to the New York
State Energy Research and Development Authority (NYSERDA) a sum equal to 1.42% of the
utility's 2004 revenue. (This percentage may be adjusted slightly each year based on updated
utility revenue.)
The SBC program is administered by NYSERDA as the New York Energy $mart Program. The
program goals include improving system-wide reliability and increasing peak-electricity
reductions through end-user efficiency actions; improving energy efficiency and access to energy
options for underserved customers; reducing the environmental impacts of energy production
and use; and facilitating competition in electricity markets to benefit end-users.
Initial funding totaled $234 million from 1998-2001, with $161.6 million allocated to energyefficiency
programs, $40.4 allocated to R&D projects (including renewables), $29 million
allocated to low-income energy assistance (including weatherization), and $3 million allocated to
environmental disclosure activities. In January 2001, the PSC extended the SBC for five years --
through June 30, 2006 -- and increased annual funding from $78 million to $150 million. During
this five-year period, energy-efficiency programs received $436 million; R&D projects
Appendix A – Page 70

(including renewables) received $200 million; and low-income assistance programs received
approximately $113 million.
In December 2005, the PSC extended the SBC for an additional five years -- through June 30,
2011 -- and increased annual funding from $150 million to $175 million. Of the $875 million
that will be collected during this five-year period, $427 million will be allocated to peak load,
energy efficiency, and outreach and education; $182 million will be allocated to R&D (including
renewables); $190 will be allocated to low-income energy assistance. (The balance of fund
expenditures will support administration, evaluation and fees.) The PSC has the authority to
adjust program priorities and to shift funds to address emerging energy challenges.
Although SBC funds may be used to support renewable-energy infrastructure, the program does
not provide financial incentives for renewable-energy systems. New York's renewable portfolio
standard (RPS) provides funding for customer-sited renewable-energy installations.
Funding and Budget
Appendix A – Page 71

NYSERDA and LIPA Annual Energy Efficiency Budgets:
NYSERDA EE Program
Budget 2006: $202.8 million total
18%
1%
4%
5%
6%
7%
9%
16%
13%
13%
8%
Construction
Commercial/Industrial Performance
Multifamily
Efficient Products
Distributed Power and CHP
Administation and Evaluation
Load Reduction
Education/Awareness
Technical Assistance
Other
Business Loan Fund
LIPA EE Programs Total Extimated 2006 Budget =
$32.5 million
13% 2% Residential Lighting and
Appliances
30%
Demand Reduction
Commercial Construction
27%
Energy Affordability
28%
Residential Education
NYSERDA and LIPA Annual Renewable Energy Budgets:
NYSERDA Renewable Programs Estimated Total
Budget 2006 = $51.8 million
1%
Wholesale Renewable
1%
Next Generation R&D
2%
57%
End-Use PV/Wind Incentives
4%
PV on Buildings
4%
Administration and Evaluation
End-Use Market Development
7%
Solar Schools
11%
End-Use Technology
13%
RPS
Appendix A – Page 72

1999-2004 LIPA CEI Renewable Programs Average
Annual Budget = $8.7 million
3%
34%
Solar Pioneers (Res PV)
R&D
Geothermal
63%
Program Goals 2006-2009
Continue to form new strategic alliances with external economic development organizations.
NYSERDA actively seeks partnerships with:
• New York utility companies
• State and local economic development organizations
• University-based and private incubators
• New York State Centers of Excellence
• New York State Public and Private Universities and Colleges
• Various manufacturing associations and trade groups.
Expand and enhance STEP. Specific planned actions include:
• Design and construction of DEC’s state-of-the-art alternative fuel laboratory.
• Finalization of a lease with Daystar Technologies Inc., a PV manufacturer, to enable
design and construction of the Daystar’s new 100,000 sq.ft. manufacturing facility.
• Establishment of a Hudson Valley Community College training program at STEP to
produce highly skilled technicians to work in the clean energy technology and ENERGY
STAR® Home construction fields.
New Initiatives
Governor Pataki’s 2006 State of the State address presented his vision for an alternative fuel
laboratory to be built at STEP for the New York State Department of Environmental
Conservation (DEC). The approximately 50,000 sq. ft. structure is being designed by a
competitively selected architect-engineering firm and will ultimately be built and leased to DEC
by a competitively selected developer. Economic Development is playing a major role in the
development and construction of the laboratory. The state-of-the-art facility will be one of three
in North America that tests engine emissions for applications including prototype engines, new
engine components, and engines operating on new fuels. Construction is scheduled to commence
in 2007 and take approximately 18 months to complete. Economic Development is partnering
with the New York Power Authority, the Governor’s Office of Regulatory Reform, the Empire
State Development Corporation, DEC and other government agencies to identify sites and
provide technical assistance for advanced coal technology facilities in New York. The agencies
Appendix A – Page 73

will collaborate to identify "shovel ready" sites and issue a competitive solicitation to select a
developer to build and operate an integrated-gasification, combined-cycle power plant -
commonly referred to as "clean coal" plant - that burns coal in a manner significantly more
protective of air quality than conventional coal plants.
Program Strategies
A Three-Year Strategic Outlook 2006-2009
NYSERDA’s Partner: Rochester Gas & Electric Corporation
NYSERDA partners with Rochester Gas & Electric Corporation (RG&E) to develop its Business
Energy Efficiency Program. The program is part of RG&E’s $12 million economic development
plan and allows RG&E to make economic development incentives available to customers that
are adding jobs and making energy efficiency investments. The program works directly with
NYSERDA’s New York Energy $martSM New Construction, FlexTech, Technical Assistance,
and Energy Audit Individual Assistance.
NYSERDA organizes and conducts meetings with potential customers to assess their needs and
identify assistance available through NYSERDA’s programs and network partners. Program staff
assists customers to successfully complete all stages of participation in NYSERDA programs.
Utility Partnerships:
NYSERDA engages and builds collaborations with the investor-owned utilities, working with
their economic development departments, in particular, and their marketing activities.
Logistical Support:
NYSERDA provides support to businesses at various stages of product commercialization by
providing access to technical and financial resources through NYSERDA, external economic
development agencies, and local colleges and universities. NYSERDA provides financial and
technical assistance to energy technology firms wishing to locate at STEP.
Organizational Networking:
Relationships with organizations with purposes similar to NYSERDA’s are developed through
broadcast and targeted mailings and presentations by representatives of NYSERDA. NYSERDA
ensures that relationships, interactions, and activities with organizations in its network receive
media exposure and publicity. Economic Development staff communicates key information
about NYSERDA’s mission and programs to local business organizations throughout the State.
NYSERDA often hosts international visitors with interests in energy and energy technologies.
Appendix A – Page 74

Energy Efficiency Programs
NYSERDA Energy Efficiency Incentives
Program Category Technologies Clients Description
Grant
Alternative Fuel Vehicle
Program
Natural gas, propane, hybrid,
electric vehicles
Businesses, schools,
state/local government
Alternative Fuel Vehicle
Program
Efficiency Improvement
Various efficiency
improvement technologies
Businesses, private
institutions, schools,
healthcare facilities, state/local
governments
New Construction Program
Peak Load Reduction
Highly efficient lighting
ballasts, ENERGY STAR
appliances, other equipment
similar to the Equipment
Replacement Program
Businesses
Peak Load Reduction
Program
Pre-commissioning Building
Efficiency
Energy Efficiency Incentive
Residential Appliance
Replacement
Loan
HVAC tuning and similar
technologies to the Equipment
Replacement Program Businesses Building Commissioning
ENERGY STAR approved
materials, appliances,
equipment, etc.
1- to 4-family homes
Assisted Home Performance
with ENERGY STAR
Primarily lighting and
refrigerator replacements 1- to 4-family homes EmPower New York
Efficiency Improvement Loan
Rebate
Various pre-approved
efficiency improvements (i.e.
ENERGY STAR)
Businesses, existing single
family homes, existing and
new construction multi-family
homes
New York Energy Smart Loan
Fund
Equipment Replacement
Lighting/Controls, Unitary
HVAC, HVAC Controls and
Sensors, Motors, Variable
Speed Drives, Commercial
Freezers/Refrigerators,
Commercial Clothes Washers,
Commercial Kitchen
Equipment, Boilers, Furnaces,
Unit Heaters, Insulation,
Storage Hot Water Heaters,
Programmable Thermostats,
etc.
Businesses, private
institutions, schools,
healthcare facilities, state/local
governments
Smart Equipment Choices
lighting, motors, variable
speed drives, energy Businesses, private
management systems, institutions, schools,
packaged air conditioning and healthcare facilities, state/local Commercial/Industrial
Performance-based Incentive chillers, and custom measures governments
Performance Program
Motor Efficiency Improvement NEMA Premium Motors
Motor purchasers
Premium-Efficiency Motors
Program
Energy Metering Advanced meters Residential
Comprehensive Energy
Management Services
Program
Appendix A – Page 75

NYSERDA Energy Efficiency Services
Program Category Technologies Clients Description
Audit
Energy Audit
Lighting, thermostats, highefficiency
motors
Businesses, private
institutions, schools,
state/local governments
Energy Audit Program
Energy Audit
Education
ENERGY STAR approved
materials, appliances,
equipment, etc.
1- to 4-family homes
Home Performance with
ENERGY STAR
Efficiency Procurement
ENERGY STAR office equipment State/Local governments
Local Government Energy-
Efficient Product
Procurement
Lighting Efficiency
Improvement
Metal halide, high pressure
sodium, fluorescent, and
inductive lamps
State/Local governments
Energy Efficient Street
Lighting Programs
Energy Education Residential GetEnergySmart Website
Energy Education
Contractors, vendors,
retailers, technicians,
financial institutions
GetEnergySmart Website
Energy Education
Assisted Multi-Family
Housing
Assisted Multi-family
Program
ENERGY STAR Education
ENERGY STAR approved
materials, appliances,
equipment, etc.
Residential
ENERGY STAR Labeled
Homes Program
Demand control ventilation,
highly efficient heaters and air
HVAC Efficiency Improvement conditioners Businesses HVAC Program
Technical Assistance
Technical Assistance
Technical Assistance
Businesses, private
institutions, schools,
healthcare facilities,
state/local governments
Businesses, private
institutions, schools,
healthcare facilities,
state/local governments
FlexTech - Technical
Assistance Program
New Construction Program
Demand control ventilation,
highly efficient heaters and air
HVAC Efficiency Improvement conditioners Businesses HVAC Program
Lighting Efficiency
Improvement
Highly efficient, comprehensive
lighting systems
Small commercial buildings
Small Commercial Lighting
Program
Building Design and
Construction Process
Assistance Businesses Green Buildings
Technical Assistance
Multi-family housing
Residential Technical
Assistance
Energy Metering Advanced meters Residential
Training
Comprehensive Energy
Management Services
Program
Appendix A – Page 76

Lighting Efficiency
Improvement
Highly efficient, comprehensive
lighting systems
Motor Efficiency Improvement NEMA Premium Motors
Contractors, designers,
manufacturers
Motor Vendors
Small Commercial Lighting
Program
Premium-Efficiency Motors
Program
LIPA Energy Efficiency Incentives
Program Category Technologies Clients Description
Grant
Building Efficiency
Fluorescent fixtures/controls,
HID fixtures/controls, unitary AC
and split systems, heat pumps,
chillers, high efficiency motors Non-residential new and
and variable speed drives existing buildings
LIPA's Commercial
Construction Program
Residential HVAC Programmable Thermostat Residential
LIPAedge: free programmable
thermostat, installation, and
Internet Access
Retrofit Program
Rebate
Residential HVAC
Lighting upgrades, lighting
controls, refrigeration upgrades,
HVAC upgrades, efficient
motors, variable speed drives,
energy management systems Local businesses RECAP
Efficient and properly sized
central air conditioning, heat
pumps Residential LIPA's Cool Homes Program
LIPA Energy Efficiency Services
Program Category Technologies Clients Description
Audit
Online Energy Audit Residential LIPA's Home Energy Center
Low-Income Residential
Efficiency Program
CFLs, water heater jackets,
energy efficient refrigerators,
insulation, duct sealing Low-income residential REAP
NYPA Energy Efficiency Incentives
Program Category Technologies Clients Description
Rebate
Refrigerator Replacement High-efficiency refrigerators Residential
Furnace Replacement
Chiller Replacement
Natural gas- and oil-fired
furnaces
High-efficiency chillers
NYC public schools
New York government
agencies
NYPA's Energy Efficient
Refrigerators Program
NYPA's Coal-Fired Furnace
Replacement Program
NYPA's Chiller Replacement
Program l
Electric Vehicle Program
Hybrid-electric transit buses,
electric school buses, electric
delivery vans, electric cars
Public transit, schools,
businesses, residents
NYPA's Clean Transportation
Program
Appendix A – Page 77

Loan
Electric Vehicle Lease
Program Electric cars Residents
NYPA's Clean Commute
Program
NYPA Energy Efficiency Services
Program Category Technologies Clients Description
Audit
Green Zones
Energy efficient cars and
outdoor power equipment
Parks, college campuses, and
other restricted use areas
NYPA's green zone program
Appendix A – Page 78

Renewable Energy Programs
NYSERDA Renewable Energy Incentives
Program Category Technologies Clients Description
Grant
Alternative Fuel Vehicle
Program
Loan
Businesses, schools,
Biodiesel and ethanol vehicles state/local government
Alternative Fuel Vehicle
Program
Renewables Purchasing Loan
Rebate
PV Solar Incentive
Various pre-approved
renewables (i.e. gridconnected
solar and wind
systems)
Grid-connected PV solar
systems
Businesses, existing single
family homes, existing and
new construction multi-family
homes, state/local
governments
Businesses, residential,
state/local governments
New York Energy Smart Loan
Fund
Solar Electric PV System
Incentive Program
Wind Incentive
Wind Power
Business, residential,
institutional, government,
commercial wind farms,
schools with wind power in
their curricula
On-Site (Small) Wind System
Incentive Program
Renewable Energy Services
Program Category Technologies Clients Description
Technical Assistance
Technical Assistance
Businesses, private
institutions, schools,
healthcare facilities, state/local NYSERDA FlexTech -
governments
Technical Assistance Program
LIPA Renewable Energy Programs
Program Category Technologies Clients Description
Rebate
Residential PV Photovoltaics Residential
Geothermal Geothermal heat pumps Businesses, residential
R&D
LIPA's Solar Pioneers
Program
LIPA's Geothermal Rebate
Program
Wind Energy Land-based and offshore wind LIPA's Wind Program
Research and Development
Photovoltaics, wind, fuel cells,
geothermal, and alternative
fuels
LIPA's R&D Program
Appendix A – Page 79

NYPA Renewable/R&D Programs
Program Category Technologies Clients Description
Other
Research and Development
Fuel cells, micorturbines, solar
PV, Co-Generation, Landfill
Gas Institutions NYPA's R&D Program
Results
• Approximately $198 million in annual energy cost savings realized
• 4,200 jobs retained and created
• $2.50 leverage of every New York Energy $martSM Program dollar
• 1,400 GWh per year saved, equivalent to providing energy to 230,000 households
• 860 MW of demand reduced
• Fuel savings of 3.3 TBtu
• 1,300 farms benefited from the New York Energy $martSM Program
Cost of Energy Efficiency Compared to
Electricity Generation in New York
(Prices from July 2006)
$/kWh
0.2
0.16
0.12
0.08
0.04
0
0.0342
Average Cost of EE
Programs
0.1726 0.1463
Price of Residential
Electricity
Price of Commercial
Electricity
Appendix A – Page 80

Cost Premium to State for PV
(Prices from July 2006)
$/kWh
0.2
0.16
0.12
0.08
0.118
0.1726
0.1463
0.04
0
Cost Premium for PV
(through incentive
programs)
Price of Residential
Electricity
Price of Commercial
Electricity
Levelized Cost of Renewable
Energy Systems to Consumers
(for 25 years, $8/W)
Levelized Cost of Electricity
¢/kWh (2006 US$)
60
50
40
30
20
10
0
49.40
Commercial Building
LCOE (no deductions
or benefits)
25.08
After New York
State Rebate
18.47
After Federal Tax
Credit
13.61
After Avoided Fuel
Cost Volatility Benefit
New York Fuel Mix:
New York Fuel Mix 2006
Coal
15%
14% 2% Petroleum Liquids
3%
0%
Petroleum Coke
Natural Gas
29%
Nuclear
37%
Conventional Hydroelectric
Other Renewables
Appendix A – Page 81

New York Low-Income Programs
(Draft – To Be Updated in January 2006)
Energy Efficiency and Fuel Assistance Programs
LIHEAP
NYSERDA
LIPA
funds
works with
works through
Office of
Temporary and
Disability
Assistance
oversees
County Social
Service Agencies
Community Organizations,
HUD, Other Organizations
administers to
Low Income
Rate-Payers
Community Development
Corporation of Long Island
administers to
Low Income
Rate-Payers
administers to
Low Income
Rate-Payers
Federal Programs
New York’s LIHEAP is managed through the Office of Temporary and Disability Assistance.
It is then administered via the various counties’ Social Service Agencies. To qualify, residents
must be at 200% of the federal poverty level. LIHEAP funding for 2006 was $250 million,
serving 804,640 residents.
New York's benefit program consists of two components, regular benefits and emergency
benefits.
• Regular Benefit Component
o New York State provides benefits to households that pay directly for heat or make
undesignated payments for heat in the form of rent.
o The state calculates household benefits using a point system. Points are assigned
based on income, percent of income spent on energy, and presence of a vulnerable
individual in the household. The point value for the 2006-2007 program has been
set at $55 per point. The minimum number of points is three; the maximum
number of points a household can receive is eight.
Appendix A – Page 82

o Eligible households that pay directly for heat receive a benefit amount ranging
from $165 to $440.
o Eligible households that do not pay directly for heat receive a standard statewide
benefit of either $40 or $50, depending on income level.
• Crisis Benefits
o Eligible households receive emergency benefits based on the type of emergency.
In the 2006-2007 program, basic emergency benefits have been set as follows:
State Programs
NYSERDA Low Income Programs
2006 Estimated Budget: $16.1 Million
The Low-Income Programs are designed to reduce the energy burden of low-income households
by improving energy efficiency and providing energy management and aggregated energy
procurement services. Initiatives in this program area include: (1) providing support for and
installing a broad range of energy-efficient electric end-use measures in low-income housing, (2)
paying a portion of the incremental cost of energy efficiency measures and electric heat
conversions in publicly-assisted housing, (3) helping low-income households aggregate energy
purchasing power, (4) incorporating energy efficient equipment and design specifications into
State- and federally assisted housing, and (5) informing customers generally about the benefits of
energy efficiency.
Specific Low-Income Programs include:
Assisted Multifamily Program (AMP): This program is designed to improve energy efficiency
in eligible multifamily buildings, reduce energy bills for tenants and owners, and provide
increased health and safety benefits to building occupants.
Assisted Home Performance with ENERGY STAR® (AHP): This program is designed to
reduce the energy burden on low-income New York residents by bringing a “building
performance” approach to home improvement. The program follows a market transformation
model first introduced by the Home Performance with ENERGY STAR® Program.
Low-Income Direct Installation (DI): This program, now closed, was designed to improve
energy efficiency for low-income households by installing electric reduction measures in homes
receiving shell and heating system improvements through the federal Weatherization Assistance
Program at a time when electric reduction measures were ineligible.
Low-Income Oil Buying Strategies: This program is designed to improve energy affordability
for low-income customers through the bulk purchase of home heating fuel and other
procurements that reduce the price of fuel oil.
Low-Income Energy Awareness: This program is designed to implement a public awareness
campaign to result in measurable improvements in the enrollment of low-income residents in
energy efficiency and energy management programs.
Appendix A – Page 83

Low-Income Aggregation: This program is designed to improve energy affordability for low
income customers by grouping them together and increasing their buying power, to take
advantage of reduced commodity prices through the bulk purchase of energy.
Low-Income Forum on Energy (LIFE): This program provides one of the largest and most
comprehensive public forums dedicated to discussing the issues facing the low-income
population in the changing energy environment.
Appendix A – Page 84

Appendix A – Page 85

Appendix A – Page 86

Appendix A – Page 87

Appendix A – Page 88

Appendix A – Page 89

LIHEAP/WAP NYSERDA LIPA State Totals
2006 Budget (Millions) $250.0 $16.1 $2.7 $18.8
Administration
Total Energy/Power
Savings
Office of Temporary
and Disability
Assistance NYSERDA LIPA
38,671MWh 1
2.7MW 1 4,775.7MWh 2
117,108MMBtu 1 0.7MW 2
43,447MWh
3.4MW
5.2MWh 1
Energy/Power Savings
per Unit/Customer
0.35kW 1
31.9MMBtu 1
per Unit
1.038MWh 2
0.15kW 2
per Customer
Total Dollars Saved $7,437,693 $596,485 $8,034,178
Dollars Saved per
Unit/Customer
$1253
per Unit
$128
per Customer
Number Served 804,640 7,371 Units
4,600
Customers
Funded By SBC SBC
Notes
1. Cumulative annual savings from 1998-2005
2. For 2004
LIPA Low Income Program
2006 Budget: $2.7 Million
Residential Energy Affordability Partnership (REAP). This program provides audits and
offers energy savings suggestions to low income residents. The program also installs energy
efficient appliances, light bulbs, and insulation to increase energy savings.
Appendix A – Page 90

Budget
New York Low Income Programs
Total Annual Funds = $268,800,000
Average Household Savings = 128$ (LIPA) and $246 for NYSERDA
$2,700,000
$16,100,000
LIHEAP
NYSERDA
EnergySmart
LIPA REAP
$250,000,000
Appendix A – Page 91

Vermont Energy Efficiency Programs
Legislative/Program History
In 1990-1991 the state began to require that all gas and electric utilities include comprehensive
energy efficiency services in their offerings. With 21 distribution utilities, these segregated
programs became confusing for customers and unwieldy for the utilities to maintain. The utilities
and DPS agreed to consolidate these programs in a Memorandum of Understanding in 1999
(Docket No. 5980), leading to the 1999 Vermont legislation 30 V.S.A. §§ 209(d) and (e), which
gave authority to the Vermont Public Service Board to create an energy efficiency utility (EEU),
later called Efficiency Vermont.
Program Goals
The Board’s goals for the EEU include (1) achieving the maximum magnitude of societal net
benefits while acquiring comprehensive cost-effective electric efficiency savings; (2) responding
appropriately to markets in order to increase the level of and comprehensiveness of energy
efficiency services to Vermonters; (3) effectively capturing potential "lost opportunity" markets;
and (4) striving for distributional equity across customer classes and geographic regions.
The EEU is required to address seven core markets: residential lost-opportunity, commercial and
industrial lost-opportunity, low-income, farm, retail products, residential emerging markets, and
commercial and industrial emerging markets. In 2003 Efficiency Vermont’s focus shifted from a
“programs” approach to a “market” (customer-based) approach).
In 2003, the market-based approach was initiated to better align Efficiency
Vermont services with customer and strategic partner needs. Our objectives in
undertaking this new approach included simplifying customer and strategic
partner participation, working more effectively throughout supply chains to
impact energy affecting decisions, and eliminating gaps in services. Service gaps
occurred when customers did not fall into the traditional residential or business
segments, did not fit pre-conceived “program” definitions, or when strategic
partners served a range of residential and business customers. The markets
Efficiency Vermont seeks to affect are complex and dynamic.
Understanding these markets, their particular needs, budget cycles, market actors
and their interrelationships requires similarly dynamic approaches which are
focused on and aligned with these markets. Efficiency Vermont has transitioned
organizationally to this market-focused perspective by developing a team
approach to better serve the breadth of the markets and more positively impact
both customer and strategic partner energy efficiency decisions. (2004 Annual
Plan)
Targets for the 2006-2008 contract period are:
- 204,000 MWh annual energy savings
- $139 million of Total Resource Benefits
- At least $1.30 of Total Resource Benefits per dollar spent in each county
Appendix A – Page 92

Services/Clients/Programs
Incentive Programs
Program Category Technologies Clients Description
Rebates
Appliances washer, dryer residential, commercial
HVAC
Chillers, furnaces, heat
pumps, boilers, air
conditioners
commercial, industrial,
institutional, agricultural
Motors motors commercial, industrial,
institutional, agricultural
Equipment
transformers,
commercial
refrigerators/freezers,
vending machine
controllers
commercial, industrial,
institutional, agricultural
Lighting
Loans
Customized Assistance
LED traffic lights,
fluorescent, super T8
dairy equipment,
buildings, ski resort
equipment, water and
wastewater facilities
commercial, industrial,
institutional,
governmental
dairy farms, schools, ski
areas, multifamily
buildings, water and
wastewater facilities
Customized Assistance load management, CHP 68 industrial centers
over 1MW
Grants
Customized Assistance
dairy equipment,
buildings, ski resort
equipment, water and
wastewater facilities
dairy farms, schools, ski
areas, multifamily
buildings, water and
wastewater facilities
Customized Assistance load management, CHP 68 industrial centers
over 1MW
provides tech support
and customized
financial incentives
provides tech support
and customized
financial incentives
Service Programs
Program Category Technologies Clients Description
Audits
Energy Audits business customized services
Information/Awareness
Building Design buildings
business
Information
Curriculum
Development
colleges and universities
curriculum
development, service
learning, facilities
projects, research
opportunities
Public Awareness all Vermont citizens community-based
energy projects,
information
dissemination (website,
Appendix A – Page 93

factsheets, resource
library)
Technical Assistance
Building Design buildings residential and business
Testing and Rating buildings residential and business provides testing and
rating for LEED and
Customized Assistance
Customized Technical
Support
Weatherization
Local Weatherization
Agency
Training
Training for building
managers
dairy equipment,
buildings, ski resort
equipment, water and
wastewater facilities
load management, CHP
dairy farms, schools, ski
areas, multifamily
buildings, water and
wastewater facilities
68 industrial centers
over 1MW
Energy Star buildings
provides tech support
and customized
financial incentives
buildings low-income residential connects clients to
weatherization services
buildings
state facilities, large
building owners
The 2005 Annual Plan describes in detail the services and initiatives for 2005:
• Retail Efficient Products
• Business New Construction
• Residential New Construction
• Existing Businesses
• Existing Homes
• Dairy Farms
• Strategic Partners
• Schools
• Multifamily Buildings
• State Buildings
• Water and Wastewater Treatment Facilities
• Ski Areas
• Customer Credit
• Better Buildings by Design Conference
• Regional and National Partnerships
• General Customer Service and Support
Most of these initiatives operate through a combination of financial incentives; partnerships with
retailers, distributors, and manufacturers; marketing and outreach to customers; and customer
technical assistance and information. In 2006-2008 Efficiency Vermont plans to add five new
initiatives: community-based energy projects, college and university partnerships, new focus on
industrial customers, facility operational efficiency, and advanced lighting and daylighting.
Structure and Governance
Appendix A – Page 94

The EEU operates as an independent contractor to the Board under the name Efficiency
Vermont. The Public Service Board is the state entity in charge of utility development, rate
setting, quality of service, and overall financial management. The Vermont Department of Public
Service (DPS) is an executive agency that evaluates the EEU’s performance and makes
recommendations to the Board. The only territory not served by the EEU is Burlington, which is
served by the Burlington Electric Department, though the EEU and BED work closely together.
The Board contracts with the EEU to run Efficiency Vermont for three-year contracts, with the
option of renewal after the first three years. If renewed, the contract must be put out to bid again
after the sixth year. The nonprofit Vermont Energy Investment Corporation (www.veic.org) won
the contract for 2000-2002, had their contract renewed for 2003-2005, and again won the
contract for 2006-2008. In addition to contracting the EEU, the Board also hires a Contract
Administrator to administer the contract and a Fiscal Agent to receive and disburse the funds.
The Board also appoints an Advisory Committee of distribution utility representatives,
consumers, members of the DPS, and others as appropriate.
Vermont Public
Service Board
hires
hires
hires
Contract
Administrator
Vermont Energy
Investment Corporation
Fiscal Agent
oversees
administers
Energy Efficiency Utility
(Efficiency Vermont)
oversees
evaluates
Dept. of Public
Service
Funding and Budget
Currently the EEU is financed by an energy efficiency charge that collects an average of 2.82%
of Vermont customers’ total electricity payments. The amount of the charge is determined each
year by the Board. The charge is collected by the distribution utilities and handed over to the
Fiscal Agent. In the original legislation, the fund is declared to be only for the EEU and not
general state funds: “…. Balances in the fund shall be ratepayer funds, shall be used to support
the activities authorized in this subdivision, and shall be carried forward and remain in the fund
at the end of each fiscal year. These monies shall not be available to meet the general obligations
of the state. Interest earned shall remain in the fund….” (Section 209 (d)(3)).
In August 2006, as a result of a 10-month process, the Board released an order that expanded the
allowable budget of the EEU from the original $17.5 million cap to $19.5 million for 2006, $24
million for 2007, and $30.75 million for 2008. In order to pay for these increases, the Board is
conducting workshops and meetings to investigate the possibility of long-term financing for
Appendix A – Page 95

efficiency projects, the way supply-side projects are financed. Options they are considering
include establishing an entity with bonding authority to implement EEU financing,
securitization, commercial financing, and making energy efficiency projects available for
reduced cost funding under the Sustainable Priced Energy Enterprise Development (SPEED)
program.
Three issues still remain from the 2006 budgeting process which the Board plans to address in
the future: targeting efficiency investments, a waiver mechanism for avoiding the energy
efficiency charge under certain circumstances, and the establishment of a CHP program to be
administered by the EEU.
Total: $14,850,000
Efficiency Vermont Programs Budget
2006=$14,850,000
4%
40%
56%
Program Delivery
Efficiency Vermont has 108 staff members. Staff categories are Business Services (42),
Residential Energy Services (19), Marketing and Business Development (16), Integrated
Services (10), Planning and Evaluation Services (8), Customer Service (4), Executives (3),
Finance (3), and Human Resources (3). It’s not clear which services are done in-house and
which, if any, are contracted out.
Monitoring and Verification
Vermont Department of Public Service provides formal evaluations and makes recommendations
to the Board (evaluation reports are available on DPS website) The DPS contracts the evaluation
studies out to energy evaluation consulting firms through separate RFPs for residential and
business programs
Appendix A – Page 96

The Contract Administrator and Fiscal Agent also monitor the program. The Contract
Administrator, “reviews the EEU's compliance with the terms of its contract with the Board,
including the EEU's progress towards meeting the contractual performance indicators” (RFP
2005). The Fiscal Agent provides annual financial statements and accounting reports.
Results
From 2000 to 2005, Vermonters have paid approximately $77 million via the EEC, and the EEU
has saved Vermonters over $220 million (in 2003 dollars) in total benefits.
The following are the Board-verified Efficiency Vermont results (from 2003-2005 Summary
Report).
Year Annualized
MWh saved
Total Resource Benefits Summer Coincident Peak
kW
2002 38,369 $25,132,962 NA
2003 46,675 $41,987,043 5,998
2004 50,915 $34,996,219 7,447
From the 2004 Annual Report:
Appendix A – Page 97

From the 2005 Annual Report:
0.16
0.12
Cost of Energy Efficiency Compared to
Electricity Prices in Vermont
(Prices from July 2006)
0.1376
0.118
$/kWh
0.08
0.04
0.0313
0
Average Cost of EE
Programs
Price of Residential
Electricity
Price of Commercial
Electricity
Appendix A – Page 98

Appendix A – Page 99

Vermont Clean Energy Development Fund
Legislative/Program History
In 2005 Vermont Act 74, Section 6523 established a Clean Energy Development Fund (CEDF)
to promote cost-effective and environmentally sustainable electric power sources.
Program Goals
To promote cost-effective and environmentally sustainable electric power sources.
Solar and Small Wind Program targets for one year starting Sept. 2006:
- 210 renewable energy installations
- leverage $4.5 million in private investment
- save 8,000 gallons/yr of fuel oil
- save 425MWh of electricity
Services/Clients/Programs
From Act 74, projects for CEDF funding may include the following:
• projects that will sell power in commercial quantities;
• among those projects that will sell power in commercial quantities, funding priority will
be given to those projects that commit to sell power to Vermont utilities on favorable
terms;
• projects to benefit publicly owned or leased buildings;
• renewable energy projects on farms;
• small scale renewable energy in Vermont residences and businesses; and
• effective projects that are not likely to be established in the absence of funding under the
program.
Incentive Programs
Program Category Technologies Clients Description
Rebates
Solar and Small Wind
Incentives Program
Solar hot water, solar
PV, small wind (no size
cap, but will support
only first 5kW or
500kBtu/day with price
cap; must be gridconnected)
residential, commercial,
government,
multifamily low-income
PV and solar hot water:
$1.75-$3.50; wind:
$2.50-$4.50/W.
Incentive applies
directly to approved
installers.
Loans
CHP CHP any $50,000 designated to
support a new CHP
facility
Biomass
Grants
biomass, anaerobic
digester
agricultural, public
building
$100,000 to support a
new biomass facility in
public building and
$485,000 to overcome
the three-phase power
barrier in anaerobic
digesters
Appendix A – Page 100

CHP CHP any $50,000 designated to
support a new CHP
facility
Biomass
biomass, anaerobic
digester
agricultural, public
building
$100,000 to support a
new biomass facility in
public building and
$485,000 to overcome
the three-phase power
barrier in anaerobic
digesters
Service Programs
Program Category Technologies Clients Description
Information/Awareness
Public Awareness
PV, solar hot water,
small wind
Public Engagement
Process
Wind Demo Projects small wind schools, agriculture,
government
residents, commercial VEIC maintains website
for Solar and Small
Wind Incentive Program
all Vermont citizens $50,000
20 small wind demo
projects and a detailed
website (not part of
CEDF)
The initial $1.3 million funding (through Dec. 2006) is suggested to be used for three main
initiatives: solar and small wind incentives, combined heat and power/distributed generation, and
biomass.
Solar and Small Wind Incentive Program – Originally established in June 2003 with money from
the petroleum violation escrow fund, this program provides incentives for residential,
commercial, and municipalities to reduce the costs of installing solar electric, small wind, and
solar hot water systems. The program designates a number of Partners, Cooperatives and
Contractors who can bid on funds to do solar, small wind and photovoltaic projects.
Combined Heat and Power/Distributed Generation – The DPS proposes that $50,000 of the first
round of funding be used to support an additional CHP facility in Vermont. CHP systems must
have a design system efficiency of at least 65% and must meet Vermont's air-quality standards in
order to qualify.
Biomass – The DPS proposes that $100,000 of the initial funds be allocated for the installation of
a biomass system in a public building and $485,000 be used to attempt to overcome the threephase
power barrier so that farms can increasingly use anaerobic digester technologies. The DPS
also recommends that future funds be allocated to continue the development of anaerobic
digestion systems in Vermont.
Other Projects – In accordance with Sec. 5, 10 V.S.A § 6523 funds will also be allocated for a
DPS initiated public engagement process ($50,000) and for projects under the agricultural
economic development special account established under 6 V.S.A. § 4710 ($100,000). The
Appendix A – Page 101

Department also proposes an allocation of $15,000 for initial CEDF development, administration
costs, and facilitation of the public hearing (s) related to the CEDF.
For the Vermont Small-Scale Wind Energy Demonstration Program, a separate program outside
of CEDF, the DPS is using wind energy funding from the US DOE to install 20 small wind
turbines on schools, municipal and state facilities, and agricultural sites. These demonstration
projects are showcased on a website that describes the sites and provides performance data for
the turbines (http://www.vtwindprogram.org/).
Structure and Governance
The CEDF is administered by the Department of Public Service with the support of
- Fund Administrator: writes RFPs, grant agreements, and annual reports as well as
disseminates information.
- Advisory Committee: reviews program design, 5-year strategic plans, annual plans, and
operating budgets. Consists of the Commissioner of Public Service or a designee, and the
Chairs of the House and Senate Committees on Natural Resources and Energy or their
designees.
- Investment Committee: approves plan and budgets and helps review large grant and
investment proposals.
Vermont Department
of Public Service
administers
Small Wind
Demo Program
hires
administers
appoints
appoints
Fund
Administrator
Advisory
Committee
Investment
Committee
administers
oversees
oversees
Vermont Energy
Investment Corp.
Clean Energy
Development Fund
administers
funds
funds
Solar and Small Wind
Incentive Program
Other Programs:
- CHP
- Biomass
- Public
Funding and Budget
Appendix A – Page 102

The CEDF’s initial start up will be $1.3 million. In addition, the program will receive between
$6.2 - 7 million annually from Entergy until 2012. The majority of the funding comes from two
MOUs with Entergy over issues with its nuclear facility. Funds are to be distributed by grants,
loans, investments, and incentives.
Clean Energy Development Fund
Program Budget
2006=1,300,000
4%
8%
1%
38%
45%
4%
Solar and Small Wind
Biomass
Agriculture Econ. Dev.
CHP
Public Engagement
Adminstrative Costs
For the Solar and Small Wind Incentive Program, in Sept. 2005 DPS allocated $454,000 for
small-scale wind demos (comes from $1.5 million from the U.S. Department of Energy for the
DPS Wind Development Program). For the latest funding round, starting Sept. 2006, the CEDF
is providing $500,000 to the program. An additional $280,000 of incentive funds for solar
electric and solar hot water systems is being provided by two distribution utilities (Central
Vermont Public Service and Green Mountain Power) for customers in their service territories.
Combined with leftover money from the initial Solar and Small Wind Incentive Program, a total
of $980,000 is available for incentives starting in Sept. 2006.
Another portion of the $1.5 million from DOE went to the DPS Vermont Small-Scale Wind
Energy Demonstration Program.
Program Delivery
The CEDF will be administered by the DPS. A Fund Administrator will be designated to have
primary oversight of the Fund including writing and issuing Requests for Proposal, managing
grant agreements, preparing annual reports, and disseminating information on the Fund.
Currently the Renewable Energy Resource Center (www.rerc-vt.org), a project of the Vermont
Energy Investment Corporation, administers the Solar and Small Wind Incentive Program and
provides consumer education and support services.
Monitoring and Verification
Advisory Committee – The role of the Advisory Committee will be to review the overall Fund
program design, which will include a five-year strategic plan, and the annual program plan and
operating budget developed by the DPS Commissioner. The Advisory Committee will consist of
Appendix A – Page 103

the Commissioner of Public Service or a designee, and the Chairs of the House and Senate
Committees on Natural Resources and Energy or their designees.
Investment Committee – The Investment Committee will approve the CEDF plans, budget and
programs designs. The Investment Committee will also assist the Fund Administrator and the
DPS Commissioner in the review of grants and investments; determining the viability of a
project, company, product or service; and evaluating marketing and business plans. It is
recommended that the Advisory Committee and Investment Committee give the Fund
Administrator discretion to fund lower cost projects that fall under a pre-determined amount.
Public Input Process – The DPS will initiate a public input process to receive feedback on the
proposed CEDF program design, five-year strategic plan, and annual program plan. The DPS
will at minimum hold one public hearing and post draft documents on the department website.
This outreach and feedback process will ensure that the ultimate structure and administration of
the Fund has the buy-in from interested parties and stakeholders.
Results
Since 2003 the Solar and Small Wind Incentive Program has helped install 345 renewable energy
systems with a capacity of 434 kW and 1,500 million Btu/yr and spent $1,373,920 in incentives.
The Vermont Small-Scale Wind Energy Demonstration Program has installed 20 small wind
turbines at a capacity of 200kW.
Cost Premium to State for PV
(Prices from July 2006)
0.16
0.12
0.0931
0.1376
0.118
$/kWh
0.08
0.04
0
Cost Premium for PV (through
incentive programs)
Price of Residential Electricity
Price of Commercial Electricity
Appendix A – Page 104

Levelized Cost to Consumers
(Over 25 Years)
Levelized Cost of Electricity
¢/kWh (2006 US$)
60
50
40
30
20
10
0
50.13
Commercial Building
LCOE (no deductions
or benefits)
28.47
After Vermont State
Rebate
20.91
After Federal Tax
Credit
15.41
After Avoided Fuel
Cost Volatility Benefit
Appendix A – Page 105

Energy Efficiency and Fuel Assistance
Vermont Low Income Energy Programs
LIHEAP and WAP
funding
Weatherization
Trust Fund
$
$
Efficiency Vermont
(EEU)
$
Dept. of Children and
Families, Economic
Services Division
training and
technical
resources
Community
Action Agencies
administer programs
Low Income
Ratepayers
Federally Funded Programs
LIHEAP and WAP are administered by the Economic Services Division (ESD) within the
Department of Children and Families. The WAP services are provided by the local Community
Action Agencies, of which there are 19, and two other nonprofit entities. LIHEAP funding for
2006 was $13.68 million, with 19,327 households served in 2005. WAP funding for 2006 was
$1.35 million. Participants must be at 125% of the federal poverty level to be eligible, but some
services are provided at 150% of the poverty level.
LIHEAP statistics:
(from Aug 31, 2006 Memorandum)
State Funded Programs
Weatherization Trust Fund
Established in 1990, this fund provides additional funding for WAP services. The Trust Fund is
funded through a 0.5% gross receipts tax on regulated utilities and all non-transportation fuels
except wood (about $4 million to $6 million annually). In 2005 $4.9 million was spent out of the
WAP. The money can be spent on weatherization or moved over to supplement LIHEAP funds if
Appendix A – Page 106

necessary (in 2006 $3.5 million was used from the Weatherization Trust to support LIHEAP
funding). Low income weatherization funding in Vermont is 83% from the state trust fund and
17% from the federal WAP. From 1990-2001, 13,790 homes have been weatherized, with about
1000 single family homes weatherized each year. Average participant yearly savings are
$234/year. See below under EEU’s Low Income Single Family program for more results.
EEU Programs
The EEU contract stipulates that they must spend 15% on low income services (for 2006, $2.23
million). In providing low income services, the EEU has a goal of eliminating historic
geographic gaps in energy efficiency services. The EEU has two low income programs: Low
Income Single Family and Low Income Multifamily.
Est. annual totals for EEU programs (from ppt. presentation)
LISF
LIMF
participants 1200 1380
spending/participant $1,000 $625
incentive/participant $600 $275
savings/participant $140 N/A
Low Income Single Family - The EEU provides all single family low-income services through
the existing WAP administering organizations (Community Action Agencies) by supplementing
the services they offer and providing training for the WAP auditors; guidelines, screening tools,
and technical resources; and financial resources for the incentives, fees, and administrative
expenses. Efficiency Vermont’s Low-Income Housing Services supplements the weatherization
program by paying for efficient lighting installation, free refrigerator replacement, sealing doors
and windows, insulation, low-flow shower heads, replacement of electric heat with oil, gas or
propane (WAP pays for 25%, EEU pays for 75%), and referral to other loans, mortgage
products, or energy services.
Low Income Single Family results from March 2000 to June 2005 (ACEEE, 2005):
• Served 4,515 participants
• Saved 9,353 MWh cumulatively
• Annual savings per participant is 2,071 kWh
• Average participant yearly savings are $234/year
• Approximately 1000 households weatherized per year
• Total resource benefits estimated at $4, 995,346
• Incentives from EEU: $2,828,100; incentives from WAPs: $294,800
• EEU direct program costs: $4,604,800
• Cost per MWh saved: $492/MWh ($0.492/kWh)
Low Income Multifamily – Almost all subsidized affordable housing in Vermont receives
services from the EEU. The EEU provides customized technical assistance and incentives, such
as design assistance, fuel switching, and efficiency lighting and water systems. Individual renters
are referred to the WAP program for further services. The EEU is also beginning to work with
private, non-subsidized low income multifamily residences as well. EEU programs are fuel
Appendix A – Page 107

neutral and the EEU partners with Vermont Gas and Burlington Electric District (BED) to
provide consistent services for all customers.
Low Income Multifamily results from 1997 to 2003:
• Total of 5,937 participating housing units (including 519 units serviced by EEU/Vermont
Gas and 136 units served by Vermont Gas/BED)
• 12,291 MWh of cumulative annualized energy savings (through 2002)
• 7,201 Mcf of natural gas cumulative annualized savings
• 4,744 ccf of water savings
Combined Program Results
Approximately $22 million is spent annually on low income energy efficiency and fuel
assistance in Vermont. About 20,000 households receive fuel assistance annually, and 1,000
receive weatherization services. In the winter of 2005-2006, the average household fuel
assistance was $1,364. The average weatherization benefit to households is approximately
$234/year, with households saving an average of 2,000 kWh from the upgrades.
Vermont Low Income Programs
Total Annual Funds = $22,000,000
Average Household Savings = $234
$2,000,000
$5,000,000
$1,350,000
$13,680,000
LIHEAP WAP Weatherization Trust Fund EEU Programs
Low Income Renewable Energy Programs
EEU Renewable Energy Incentives
Vermont renewable energy rebates have a higher maximum incentive amount for multifamily
low income projects (lesser of $35,000 or 50% of cost).
Appendix A – Page 108