Tapping the Energy Efficiency and Conservation Loan Program | For Utilities

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Why address multi-family energy efficiency?

Load reduction is inevitable. How will you address it?

While overall energy usage continues to grow, multiple external pressures are driving increased focus on energy consumption and efficiency, especially within the multi-family housing sector.

•Growing number of utility-focused federal, state, & local energy efficiency requirements•More local governments requiring multifamily buildings to report energy consumption

Sources: 1. Urban Land, 3. EIA, 4. HUD, 5. Demand Institute

Regulatory Compliance

Usage Trends

Customer Demand

•Residential end use energy intensity (per sq. ft.) continues to decline3

•Multi-family housing is older and has higher potential for energy efficiency than other housing stock4

•“Satisfaction gap” exists between customers’ desire for and realization of energy efficient homes5

•Customers expect utilities to keep costs of energy low to ensure affordable homes

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How can EECLP help?

What if you had an opportunity to….

Utilities can anticipate and mitigate the impact of these changes in part through the Energy Efficiency and Conservation Loan Program (EECLP) of the Rural Utilities Service (RUS) at USDA.

Address Regulatory

Requirements?

Mitigate Risk?

Improve Customer

Satisfaction?

Address existing and pending federal, state or local requirements by providing measurable reductions in energy usage

EECLP can help…

Generate new revenue streams through on-bill financing, reduce peak demand, and increase load reliability with targeted retrofits

Meet customer needs by helping upgrade outdated buildings, deliver desired retrofits, and reduce utility spend for individuals in rural communities

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What is EECLP?EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing.

RUSLends at

treasury rates + 1/8th

Utility

Customer

Retrofit Implementer

Re-lends to customer

Directly funds retrofit projects

Executes retrofit projects

Re-pays retrofit project costs/ loan

Rural Dev.

Supports EECLP application process

Provides utility market share advantage

Helps increase customer satisfaction

Advances rural prosperity Helps meet energy

efficiency and regulatory requirements

Creates new revenue stream

Hedges against risk

EECLP Benefits

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What is EECLP?EECLP is an initiative to provide low-cost federal financing for energy efficiency and conservation in eligible rural communities; the Rural Housing Service (RHS) is currently partnering with RUS to retrofit multi-family housing.

RUSLends at

treasury rates + 1/8th

Utility

Customer

Retrofit Implementer

Re-lends to customer

Directly funds retrofit projects

Executes retrofit projects

Re-pays retrofit project costs/ loan

Rural Dev.

Supports EECLP application process

EECLP Fast FactsEligibility• Electric service providers in rural

areas (pop. < 20K) served by RUS Loan Terms• Tied to the useful life of the asset• Typically 15 yearsSample Projects• Energy efficiency and conservation

projects (e.g., on-bill financing)• Weatherization, HVAC and water

heater upgrades• Fuel cells• Energy audits• Utility energy services contracts• Consumer education and outreach

programs, and• Re-lamping for more efficient

lighting

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State Energy Program

Rural Co-op

1 State ids interested co-ops

2 *Co-ops agree; Begin EEP Planning

RHS+

Industry Trade Group

RHS & Industry Trade Group ids interested housing owners

Multifamily Housing Owners

2Owners agree; Begin estimating investment need

1 Complete estimation; Receive quotes

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3 Identify MFH Buildings in Service Area

(Optional) EEP Development Workshop

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Develop funding request business case

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Investment Decision Workshop to Select Retrofit Projects

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*Note: While Rural Co-Ops are shown here, EECLP is available to all Electric Utilities

What are the next steps?