Energy Upgrade California Multifamily Programs - Heschong ...

Energy Upgrade California• Statewide program for energy and green buildingupgrades• Collaboration of state, utilities, cities/counties• Each City or County may have unique programelements• Solutions to overcome participation barriers:– Rebates/incentives– Financing– Education/awareness– Professionals training• Supports the whole-building approach to energyefficiency

What is the Whole Building Approach?• Evaluate best sequence of measures for abuilding across multiple systems, including:o Envelopeo Heating & cooling systemso Water heating systemso Lighting & applianceso Other green measures (water efficiency,recycling, etc.)

Energy Upgrade California – Multifamily ProgramsProgram ElementsAlamedaCountyLos AngelesSanFranciscoSacramento(SMUD)San Diego(SDG&E,local)Technical Assistance √ √ √ √ √Energy Assessment Rebate √ √ √Upgrade RebateMin. energy efficiency improvement√Min = 10%√Lighting, LightingControl,Appliances &Weatherization√Min = 20%√Min = 10%Green Labeling Rebates √ √Expiration Date June 2013June 2013Application: June 2012Work: April 2013On-goingApril 302012June 2012Extension Pending

Multifamily.EnergyUpgradeCA.org

Program Process Outline1. Contact program administrators beforeproject2. Receive guidance on how to approachupgrade3. Engage a qualified energy professionalto determine scope of upgrades4. Undertake and verify upgrades5. Receive incentive payments

Planning Energy Upgrades & Accessing FundingBroader scope more sources of funding longer timelinesOptionsforRecoverySacramentoSorrentoTowersSan DiegoPosada de ColoresAlamedaStep Up on VineLos AngelesEnergy UpgradeCASMUDEnergyUpgradeCASDG&EEnergyUpgradeCACity ofSan DiegoEnergyUpgradeCAAlamedaCountyGreenRetrofitProgramHUDLocalGovernment NOFACity ofOaklandEnergyUpgradeCALA CountyRehabfinancingsources

Sacramento CountyCase Study: Options for RecoveryPresented by: Sophia HartkopfHeschong Mahone Group, Inc.

Sacramento Program Highlights• 20% reduction in whole-building energy use– Predicted energy savings using simulation• Short program timeframe– 9 months from qualification to construction• Prevailing wage labor requirement• Up-front energy assessment (rater) incentive– 25% incentive after work scope approval• Partial construction progress payment– At 50% construction completion

Large Incentives• Per unit incentive based on minimum 20%improvement– from there incremental $50/unit per additional 1%20% $2,30030%40%50%$2,800$3,300$3,800• Incentives designed to help offset the retrofit costs:– Energy measures, labor, and rater(cannot exceed total cost)– Less need for financing leveraging

Options for Recovery: Project Overview• 1 building/ 2 floors/14 units• Built in 1985• Located in Sacramento– Climate zone 12 (Inland)• Supportive housing• Team:– Volunteers of America(Owner)– HomeAID(labor and material donor)– Meritage Homes (contractor)– Ducttesters (HERS Rater)

Options for Recovery: CostsUpgrades• Dual pane, low-e, windows• HVAC system replacement– Central furnace (.80 AFUE)– Packaged Air conditioner (13 SEER)Duct sealing (to 15% leakage)• Other project costs (new roof, TI)Total retrofit cost• Sacramento County incentiveNet cost of retrofitCosts$ 14,082$ 22,747$ 27,739$ 66,566- $ 38,829$ 27,739

Options for Recovery: Cost vs. SavingsEnergy Upgrade CostsEstimated Annual TDV Energy SavingsWindows (50%)Duct Sealing (15%)HVAC (35%)$ 35,754 $ 2,576

Options for Recovery: Quote"The SMUD Energy Upgrade program proved to be anexcellent resource for HomeAid Sacramento’s project forVolunteers of America. Having these funds made it possiblefor us to do so more for our nonprofit shelter partner than wehad originally planned! A few benefits icnlude:• The new upgrades reduced our utility costs, leaving moreresources for programs and services.• The roof stopped leaking!• The “draft” in the client sleeping rooms was eliminatedWhen individuals and their families don’t have to worryabout being in a warm and safe place at night, they are ableto move toward making positive changes in their lives.”-Beth Kang, Executive Director, HomeAid Sacramento

Program Results• Average predicted energy savings 28%– across portfolio of 48 projects (2,513 units)• HVAC and windows are most popular upgradesEnergy Upgrades Selected % #Cooling 81% 39Heating 79% 38Windows 52% 25DHW 30% 14Attic/Roof Insulation 25% 12Lighting 17% 8Duct Sealing 15% 7Refrigerators 13% 6Wall Insulation 4% 2Cool Roof 2% 1

Contact InformationTo apply for the program, visitwww.smud.org/multifamilyThank you!Sophia HartkopfHeschong Mahone Group, Inc.916-962-7001hartkopf@h-m-g.com

San Diego CountyCase Study: Sorrento TowerPresented by: Elizabeth McCollumHeschong Mahone Group, Inc.

San Diego Program Highlights• 10% reduction (simulated) in whole-buildingenergy use to participate• Layered incentives, program benefits, andrequirements– County of San Diego (March 2011 - May 2012)• HERS Rater training and technical support• Tenant education– City of San Diego (May 2011 – May 2012)• 15% of units must low- or moderate-income (up to400% FPL)• HERS Rater incentive for assessment and verification– SDG&E (September 2011- December 2012)• Health and safety testing• Energy Savings Assistance (ESA) Program coordination

San Diego CollaboratorsEnergyUpgradeImplementersOtherLeveragedProgramsCECCounty ofSan DiegoHMGDOE(ARRA)City ofSan DiegoCCSEHMGCity ofChulaVistaESAPRate-Payer(CPUC)SDG&ECCSEMASHCSI

Layered IncentivesPercentImprovementCity ofSan Diego($/unit)City ofChula Vista($/unit)SDG&E($/unit)10% $550 $350 $55015% $625 $525 $62520% $800 $700 $80025% $1,000 $875 $1,00030% $1,200 $1,050 $1,20035% $1,350 $1,225 $1,35040% $1,500 $1,400 $1,500

Sorrento Tower: Project Overview• 1 building/ 14 floors/198 units• Built in 1976• Located in the City of San Diego– Climate zone 7 (Coastal)• Low-income senior housing• Team:– RAHD Group (Owner)– Phase 3 Construction– ICON Builders– Jeanne Fricot (HERS Rater)

Sorrento Tower: Energy UpgradesUpgrades• Dual pane, low-e, windows• Domestic hot water– 2 high efficiency water heaters– Pump with demand control• ENERGY STAR refrigerators• High-efficacy lighting– Dwelling units– Common areasTotal upgrade costCity incentive (18% TDV improvement)SDG&E incentive (10% site improvement)Total incentivesNet cost of upgradesCosts$ 1,407,728$ 40,000$ 96,030$ 70,290$ 1,614,048$ 124,740$ 108,900$ 233,640$ 1,380,408

Sorrento Tower: Cost vs. SavingsUpgrade CostsEstimated TDV Energy SavingsWindowsDHWRefrigeratorsLighting$ 1,380,408 $ 31,171

Sorrento Tower: Cost-Effectiveness• Windows done for sound insulation andaesthetic reasons– Small energy savings due to mild climate• Removing windows from the equation:– Cost of upgrades: $206,320• DHW, Refrigerators, and lighting– Estimated annual utility savings: $30,000• Payback without incentives: 7 years– Program incentives: $233,640• Covers full cost of upgrades – instantpayback

Sorrento Tower: Program Benefits• Health and safety– Ventilation testing results lead toimprovements for adequate exhaust fromeach dwelling unit– Asbestos removal with windowreplacement/expansion• Windows allow for daylight, views, and fresh air(operable windows even on upper floors)• Utility cost savings allow for resident benefitsand programs

“It’s rare in construction and development whenimprovements can be cost effective, good for theenvironment, enhance the property’s value, andbenefit the tenants’ lives all at once. EnergyUpgrade California allowed us to do just that.”- Colin Rice, RAHD Group

Contact InformationTo learn more about Energy Upgrade California inSan Diego County, or to apply for programparticipation, contact:Elizabeth McCollumHeschong Mahone Group, Inc.916-962-7001mccollum@h-m-g.com

Alameda CountyCase Study: Posada de Colores, The Unity CouncilPresented by: Miya KitaharaStopWaste.Org

Alameda County Program Highlights• Technical assistance at project inception– Identify cost effective measures– Direct to applicable rebates– Preliminary GreenPoint Rated checklist– Plan check for GreenPoint Rated• Green Labeling Rebate– $3,000 – 30,000: Case-by-case assessmentbased primarily on number of dwelling units– Offsets cost of green verification &certification– Paid in two installaments

Earning the Green Label1. Complete preliminary checklist based on existing& planned scope (technical assistance)2. Hire GreenPoint Rater (upfront rebate payment)– Rater can also conduct energy audit &modeling3. Complete construction & on-site verification4. Rater submits documentation5. Receive certification (final rebate payment)• Marketing efforts to increase awarenessof green labels & benefits

Posada de Colores: Project Overview• Unity Council• Built in 1976– HUD & City funds• Failing, original systems• 100 units (all occupied)• Affordable housing forseniors• Oakland FruitvaleNeighborhood

Posada de Colores• Energy Upgrade CA: Oneelement of larger plan• Leveraged other “green”funding sources• Prepared a Green PNA –benefitted applications• Included non-energy greenmeasures

Posada de Colores: Energy Upgrades• Weatherized external façade– Repaired water/air infiltration leaks, replaced joint seals• Dual pane, low-e windows– U-Factor: 0.31, SHGC: 0.33• Domestic hot water & space heating boilers– 94% efficiency– New hydronic pipes, pipe insulation– Distribution system replacement: pumps, motors, fancoils, wiring, panels, controllers• Elevator replacement• High-efficacy lighting– Dwelling units– Common areas

Posada de Colores: FundingTotal 2007 to 2012 capitalimprovements needed2007 – current funding obtained:• HUD Green Retrofit Program• City of Oakland Loans• Energy Upgrade CA TechnicalAssistance & Green LabelingRebateTotal Funded$ 2,400,000$ 690,000$ 450,000$ 20,000$ 1,160,000

Posada de Colores: EnvelopeFaçade weatherizationWindowupgrades

Posada de Colores: Heating EquipmentBeforeAfter

Posada de Colores: Heating DistributionBeforeAfter

Posada de Colores: Other Green Measures• Energy: Lighting in units &common areas• Community: ADAcompliance remodel ofcommon area restrooms• Water: Common areawater efficiency; efficientlaundry machines

Posada de Colores: Other Green Measures• Indoor Air Quality: Low VOC caulking, paints• Resources: Recycled content materials• Replaced traditional nylon carpet with wool• Low-formaldehyde kitchen & bathroom cabinets• Natural Linoleum flooring• GreenPoint Rating in Progress• $20,000 incentive for green labeling

Posada de Colores: Next Phases• New roof – eliminate rain waterpooling & solar heat gain• ENERGY STAR rooftop exhaust fans• Sliding glass doors• LED outdoor lighting• Water: Efficient toilets;faucet aerators;showerheads• Ventilation systems• Native landscaping;resident outdoor areas

Posada de ColoresThe upgrade not only reduced ourPG&E gas bills; it has benefited ourresidents with improved thermaland acoustical comfort.— Ross OjedaDirector Real EstateUnity Council

Contact InformationMore information about the program:– Multifamily.EnergyupgradeCA.org– multifamily@stopwaste.org– 510-891-6558

Los Angeles CountyCase Study: Step Up on VinePresented by: Amy DrydenBuild It Green

About the Program• Multifamily buildings in LA County• 5 units or greaterAND– Central systems - 100% of the building– Individual systems - 60% of the units• Achieve minimum 10% whole buildingperformance level implementing at least 3practices to target whole building improvement• Construction must be completed by April 30, 2013• Properties that pursue more comprehensiveupgrades may qualify for aGreen Building Labeling Pilot Incentive

Rebate Structure• Rebates and Incentives are– Technical Assistance• Upfront at application process asprequalification• Quality Assurance throughout– Offset Investment Grade Audit – AssessmentIncentive– Offset Costs of Improvements –Improvement Incentive– Offset cost of green rating- Green LabelingRebate

Assessment Incentive• Offset cost the Investment Grade Energy Audit• Identify energy improvements• Identify targeted percent improvement• Audit must be conducted by approved raterNumber of Unitsin BuildingIncentiveper building5- 20 units $5,00021 - 50 units $10,00051 + units(incremental increase) $20

Improvement Incentive• Offset cost the purchasing and installing energyconservation measures for whole buildingimprovements• Incentive limited to $100,000 or 60% ofpurchase and installation costsImprovement inBuilding PerformanceIncentiveper Unit10% improvement $20015% improvement $40020% improvement $70025% improvement $90030% improvement $1200

Green Labeling Rebate Program• Green label kicker for projects that getgreen label• Flat incentive of $4000 for projectswith 5-21 units.• GPR Elements/LEED EB O&M projectswith 21+ units will receive anadditional $50/unit• GPR Whole Building/ LEED NC projectswith 21+ units will receive anadditional $100/unit

Who are the playersPlayerBuild It GreenLA CountyBuilding OwnerRater/ AuditorCertified GreenPoint Raterfor GPR/ LEED APContractorRoleProgram Administrator and TechnicalAssistanceRelease incentive and rebate to buildingownerApply to participate in program and engageauditor, manage scope of work.Complete Audit and verifications ofinstalled measures.Submit project for GreenPoint Rated/ LEEDCertificationComplete work and install based on auditrecommendations.

Step Up on VineAll photos courtesy of Reas EnergyPhotos provide by Reas Energy, Inc.

Step Up On Vine• Hollywood Community Housing Corporation& Step Up on Second Street, Inc. –partnership to meet housing needs• 1 building/ 34 units/ 3 stories• Built in 1924• Located in Los Angeles County• Energy and Green Upgrade– Whole Building Energy Upgrade Program– LEED for Homes• Expected completion December 2012- 4 thmonth of construction

Step Up on Vine: Before• 64 Guest Rooms “Galaxy Hotel”• 2 stories residential & unoccupied since 2005• First Floor Retail & unoccupied since 2009Existing Conditions• No insulation• Inefficient lighting• Wall furnaces in each unit – 63% AFUE• Central Domestic Hot Water (Dual hot water tanks)• Water fixtures not in compliance with Energy Policy Act of1992.• Original windows• Rusted vents, poor locations of vents

Step Up on Vine: Proposed• 32 efficiency units forhomeless individuals withsevere mental illness• 2 managers units• Ground Floor– Community Rooms &Computer lab– Commercial Kitchen andCafé (job training & meals)• Proposed remodel to addressenergy and green upgrades

Step Up on Vine: Energy Measures• Weatherized external façade• Low E windows• Wall and Attic Insulation• Replaced old dual tank water heaters with highefficiency water heaters and solar thermal• Replace old wall heater with high efficiency heatpumps

Step Up on Vine: Water Heating Equipment

Step Up on Vine: Other Green Measures• Energy:– Lighting in units & common areas & exterior– Energy Star microwave, cook top &refrigerators– Common laundry- leased Energy Star– Photovoltaic system- (approximately 11-13kW/ 44 panels)• Indoor Air Quality– No/ Low voc paint and adhesives– No carpet – (O&M, satisfaction) – no cost– Mechanical ventilation to units

Step Up on Vine: Other Green Measures• Indoor Air Quality– No/ Low voc paint– No carpet – (O&M, satisfaction) – no cost– No Low VOC adhesives– Humidistat controllers– Bath and kitchen exhaust• Resources– Ground floor concrete– Linoleum and resilient flooring– Seismic Upgrades– Solid surface countertops

Step Up on Vine: Other Green Measures• Water conservation:– grey water system for toilet flushing– Low flow fixtures (faucets and toilets) inunits & ground floor services• Community:– reduction of stormwater runoff throughgreen roof and vegetated screens– Services to residents and job training– Roof garden for social gathering• balanced area and benefit with PV

Step Up on Vine: Funding• Energy Upgrade CA Technical Assistance &Green Labeling Rebate- Estimated incentives$56,000.• Public funding sources which encourage/requiregreen building• Total Cost of Project: $7.2 million- 100% funded• 56% of Public funding• 6% Private funding• Remainder is covered by Tax Credits purchasedLimited Partner Equity Investor

Modeled Energy Upgrades Cost and SavingsEstimatedInstallation CostEnvelope $60,580Windows $54,342DHW $64,939Solar Hot Water $76,352HVAC $197,500Lighting $8,440Refrigerators $806Total Estimated $ $463,959– Estimated EnergyImprovement 30%• For LEED for Homes– 20% better thancode– Estimated ModeledEnergy Savings peryear $6,600 – does notinclude PV– Estimated GreenHouse Gas Emissions25 tonsCost estimated from EnergyPro modeling

Cost vs. Savings• Other Cost Savings not captured in EnergyModeling• Cost of practice + Aesthetic + Durability/Operations & Maintenance Cost = CostEffective

Grey water• Source: 34 LHU bathtub/showers.– Represents 408 gallons per day• Demand: water closets for the 34 units– Represents 348 gallons/day• Savings: Minimum of 348 gallons per day- Maybe up to 127,020 gallons of water annually.• Additional savings on water utility bill forpotable water and treatment of sewer

Program Benefits• Rebates to increase offerings to tenants to fulfillmission of healthier and more efficientenvironments for tenants– Small PV system– Grey Water• Reduce operation costs• Reduce Utility Costs• Evaluations identified lead, asbestos and mold• Green aspects allowed them to access morefunding

Step Up on VineTo make the as housing affordable aspossible for our vulnerablepopulation, we pay all of ourresidents’ utilities. The savings fromenergy upgrades are critical becausethey enable us to continue providingthis service to our tenants.- Sara Tsay, project manager, HollywoodCommunity Housing Corporation

Next Steps and Questions• Review resources onhttps://multifamily.energyupgradeca.org• Program Administrator– Lamultifamily@builditgreen.org– 510.590.3360 x.300

ConclusionNext Steps to ParticipateFuture of Energy Upgrade

How to Get Started• Visit Multifamily.EnergyUpgradeCA.org• Use the Funding Finder– List of recommended measures– List of applicable funding & incentiveprograms• Learn more about local programs

Local Program ContactsCountyAlamedaLos AngelesSacramentoSan DiegoSan FranciscoContactMiya Kitahara, StopWaste.Orgmultifamily@stopwaste.org | 510-891-6558Amy Dryden, Build It GreenLAmultifamily@builditgreen.org | 510-590-3360 x300Sophia Hartkopf, Heschong Mahone Group for SMUDhartkopf@h-m-g.com | 916-962-7001Elizabeth McCollum, Heschong Mahone Groupmccollum@h-m-g.com | 916-962-7001Lowell Chu, San Francisco Environmentlowell.chu@sfgov.org | 415-355-3738Multifamily.EnergyUpgradeCA.org