Institute Founded in 1984 by a bipartisan Congressional caucus as - - PowerPoint PPT Presentation

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Institute Founded in 1984 by a bipartisan Congressional caucus as - - PowerPoint PPT Presentation

Aug 12, 2023 121 likes •296 views

L EVERAGING F EDERAL AND S TATE E NERGY E FFICIENCY I NVESTMENTS THROUGH O N - BILL F INANCING ACEEE E NERGY E FFICIENCY F INANCE F ORUM M AY 22, 2017 Miguel Yanez myanez@eesi.org Environmental and Energy Study Institute Founded in 1984 by a

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ACEEE ENERGY EFFICIENCY FINANCE FORUM MAY 22, 2017

LEVERAGING FEDERAL AND STATE ENERGY EFFICIENCY INVESTMENTS

THROUGH ON-BILL FINANCING

Miguel Yanez

myanez@eesi.org

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Environmental and Energy Study Institute

  • Founded in 1984 by a bipartisan Congressional caucus

as an independent non-profit organization (but receives no federal funding)

  • Source of non-partisan information on energy and

environment policy development

  • In addition to policy work, EESI provides direct

assistance to utilities to develop “on-bill financing” programs

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USDA RURAL UTILITY SERVICE PROGRAMS

  • Rural Energy Savings Program (RESP)

– $52M in zero percent interest loans available to rural utilities to support EE financing programs

  • Energy Efficiency & Conservation Loan Program

(EECLP)

– Interest rate is the variable “government rate” – Non-competitive; no defined loan caps – Broad project eligibility; EE & RE systems

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RESP HISTORY

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  • Bipartisan legislation first introduced in

2010 by Rep. James Clyburn (D-SC)

  • Passed as part of 2014 Farm Bill
  • Received first appropriation for FY 2016;

program launched in June 2016 with $52M available

  • Funding for FY 2017 recently passed
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RESP ELIGIBILITY

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  • Rural utilities serving rural areas
  • Non-profits controlled by eligible utilities
  • “Rural area” is defined as a town of less than

20,000 people

  • EE improvements along entire system
  • On-Bill Financing as a financial structure
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RESP & EECLP OPTION: ON-BILL FINANCING (OBF)

  • Utilities finance energy/water improvements to

customers’ homes (or facilitate 3rd party financing)

  • Loans (or tariff charges) are repaid on the

customer’s monthly utility bill

  • Payments are partially/completely offset by

savings from the financed improvements

  • At least 60 utilities in 22 states offer OBF in some

form, with many variations

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EXPANDING ACCESS WITH OBF

  • Many OBF programs feature:
  • No upfront costs to participants
  • Alternative loan underwriting

(i.e. good bill payment history in lieu of credit check)

  • Loan default rates are typically low, even with

alternative underwriting

  • Gives cash-strapped and credit-poor households a

better opportunity to access energy savings

  • Provides a wide range of benefits

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OBF WITH SOUTH CAROLINA CO-OPS

OBF Pilot

  • 2011-2012
  • 8 co-ops, 125 homes
  • Loan pool from USDA

REDLG loans

  • 34% energy savings

On-going OBF Program

  • 2012 - Present
  • 4 co-ops, ~ 510 homes
  • Loan pool from additional

USDA REDLG & RESP loans

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  • HMH tariff program: loan is tied to the meter, not the occupant
  • Participants need good bill payment history (no credit checks)
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THE AVERAGE HELP MY HOUSE HOME…

All values are per home averages for a typical meteorological year.

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HMH STRUCTURE AND PROCESS WITH RESP

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RUS KW SAVINGS CO-OP ACCOUNT REP BPI AUDITOR EE TRAINED CONTRACTOR

CONSUMER- MEMBER

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CITY OF HOLLAND - MICHIGAN

  • Launched in late 2016; On-bill loan program

for deep-energy retrofits (up to 50%); ensure access for low-income households

  • Multiple loans per customer up to $30,000

for whole-house retrofits and solar PV

  • Loans are repaid on monthly utility bills, or

tax-bills, up to 15 years

  • 24 loans approved; 11 retrofits performed

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CITY OF HOLLAND - MICHIGAN

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CITY OF BLOOMFIELD - IOWA

  • OBF part of town’s efforts to

implement its energy independence plan

  • Whole-house energy retrofits

with the aim for bill-neutrality

  • Will soon launch 15-home

pilot

  • AmeriCorps members

currently running home energy audits

  • City funds for pilot;

considering RESP funds for full program

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STATES WITH ON-BILL FINANCING LEGISLATION

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States with legislation related to On Bill Financing States where utilities have implemented or are developing On Bill Financing programs

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ON-BILL FINANCING PROJECT ASSISTANCE

EESI offers free assistance:

  • Assistance to utilities to design OBF

programs and access funding

  • Details, case studies, and lessons learned

from other working OBF programs

  • Resource identification, help overcoming

barriers to launching projects

  • Advice on program implementation
  • OBF Primer and OBF How-to-Guide

Contact

Miguel Yanez myanez@eesi.org

202-662-1882

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Miguel Yanez myanez@eesi.org 202-662-1882 www.eesi.org/OBF