BUSINESS INCENTIVE PROGRAM APPLICATION

Transcription

1 BUSINESS INCENTIVE PROGRAM APPLICATION PART A APPLICANT INFORMATION (Financial incentive payment will be made to Applicant ONLY.) 1. Applicant: Legal Name of Business (the "Applicant"): Address: City: Prov: Postal Code: Toronto Hydro Acc t # Project Contact Name and Title: Day Phone: Fax: Check One: Owner Tenant Leaseholder 2. Consultant/Contractor Information: Legal Name of Consultant/ Contractor: Address: City: Prov: Postal Code: Contact Name and Title: Day Phone: Fax: PART B PROJECT INFORMATION 1. Building or Property Type: (One application for each Project) Building Name: Address: City: Postal Code: Office Retail Hospitality Multi-residential Hospital Warehouse Commercial Institutional Multi-use Educational Industrial Other: Property Size: sq ft. or m² :

2 2. Project Details: Which one of the following best describes your Project? Replacement New equipment Expansion 3. Project description: Estimated Project Cost: $ Expected Project Start Date: Expected Project Completion Date: Energy Audit Subsidy (if applicable) $: 4. Anticipated Demand and Energy Savings Reduction Savings Type Peak kw Annual kwh Pre-Project (Baseline Load) minus minus Post-Project (Replacement Load) (See Section 5(e) of Part D (Guidelines)) equals equals Anticipated Savings PART C - AGREEMENT I have read and understood the terms and conditions on the following pages. I certify that the information I have provided is true and correct and the Project for which I am requesting incentive meet the requirements in this application. Applicant/Company Name: Title: Authorized Signature: Date: I have authority to bind the Applicant Toronto Hydro Approval (Office use only) Print Name & Title: Authorized Signature: Date: Anticipated Incentive Payable: Project #: Page 2 of 11

3 PART D - GUIDELINES 1. Program Objective and Scope The objective of the Business Incentive Program ("BIP") is for Toronto Hydro-Electric System Limited ("Toronto Hydro") to provide financial incentives to its business customers to encourage the implementation of energy efficiency improvement projects ("Projects") that will result in demand reduction and kwh savings. 2. How to apply Read PART E Terms of Agreement Complete the information in PART A and B. Sign the Application at PART C. (d) Submit to Toronto Hydro (see Section 4, below). 3. Eligible Applicants To be eligible to receive a financial incentive, the following conditions must be met: (d) (e) (f) The facility for which the Project is proposed must be connected to the Toronto Hydro distribution grid for a minimum of one year. The Project must be an energy conservation and demand management ("CDM") project that results in a reduction of at least 3 kilowatts of peak demand or 24,000 kwh annual savings. The Applicant cannot receive funding in or from any other Ontario Power Authority sponsored incentive program with respect to the Project. The Applicant must not commence Project work until Applicant receives prior written approval from Toronto Hydro (the "Project Approval Letter"). Toronto Hydro will not approve Projects retroactively. For Applications delivering 350 kw of peak demand reduction and above, the Applicant must: (i) enter into a non-disclosure agreement with Toronto Hydro (the "Non-Disclosure Agreement") ; and (ii) enter into a written contractual agreement with Toronto Hydro for the Project work (the "Contract"). The Applicant must not commence Project work until the Applicant and Toronto Hydro enter into a Contract. Toronto Hydro will not approve Projects retroactively. Project work must start within ninety (90) days of receipt of a Project Approval Letter and completed (i.e. in-service, delivering peak demand reduction) and all invoices submitted to Toronto Hydro by no later than November 1, Toronto Hydro will not be responsible for payment of the financial incentive to the Applicant if invoices are received after November 1, Process and Forms Applicants are invited to complete and submit the BIP Application either on-line, by facsimile, or by regular mail to the following address: Conservation Demand Management Business Incentive Program Toronto Hydro Electric System Limited 14 Carlton Street, 1 st floor Page 3 of 11

4 Toronto, Ontario M5B 1K5 Fax: (416) (d) (e) Applicant may combine Projects from multiple Applicant facilities in a single Application; however, the financial incentive payment is calculated based on each individual Applicant facility and not in the aggregate. Applicant may include multiple Eligible Technologies (as prescribed in Section 6, below) in one Project Application for the same Applicant facility. Along with the BIP Application, the Applicant must submit detailed information (ie. technical information and specifications related to the baseline loads and replacement loads, results from test runs, studies, operations records, M&V plan, as applicable) to support the anticipated load reduction. To assist the Applicant in calculating the peak demand reduction and energy savings, the Applicant may use and submit Forms A and/or B, as applicable, downloadable from (f) Upon completion of the Project, the Applicant is required to submit the following to Toronto Hydro at the address noted in Section 4, above: Notice of Completion, (downloadable from indicating readiness for final inspection by Toronto Hydro; A summary of actual Project work completed and reports to verify the achievement of peak demand reduction; Invoices, receipts to verify actual costs incurred including those for materials, labour, consulting fees, etc.; M&V report as and if required by Toronto Hydro (g) Following inspection and verification of the Project by Toronto Hydro, the Applicant is required to submit an invoice to Toronto Hydro for the incentive amount as determined by Toronto Hydro based on Project measurement and verification. 5. Financial Incentive Subject to inspection and verification of the Project by Toronto Hydro and compliance by the Applicant with all of the terms of this Application and Agreement, Toronto Hydro shall pay the following incentive payment in respect of the Project in the form of a lump sum payment as follows: PROJECT DESCRIPTION Maximum Incentive $/kw) Maximum Incentive $/kwh Lighting Up to $ $0.05 Space Cooling, Motors, Other Up to $ $0.10 Subject to subsection, below, the total financial incentive payment for a Project, if any, shall not exceed 50% of the total cost of the Project. Notwithstanding subsection, above, the total financial incentive payable, if any, on multiresidential in-suite lighting retrofit Projects shall not exceed the total material cost of the Project. Page 4 of 11

5 (d) (e) Toronto Hydro will pay the Applicant financial incentive in the form of a lump sum payment after the Project has been completed and the peak demand reduction and energy savings as applicable is measured and validated by Toronto Hydro. Toronto Hydro reserves the right, in its sole discretion, to measure and verify the actual peak demand reduction and the energy savings as applicable and/or to obtain a third party's assistance in measuring and verifying the peak demand reduction and energy savings as applicable. Toronto Hydro may reject payout of any financial incentive, adjust the financial incentive or withhold payment if results from the inspection indicate that the Project did not achieve the anticipated peak demand reduction and energy savings indicated in the BIP Application. In addition to the financial incentive payable on a Project, Toronto Hydro shall reimburse retail customers and industrial customers up to $4, (exclusive of applicable taxes) for energy efficiency consulting fees incurred in the preparation of an energy efficiency report relating directly to the Project. The report must be submitted with a bona fide BIP Application as determined by Toronto Hydro, in its sole discretion and prepared by one of the following service provider: (i) Engineering firm; (ii) Energy service company; (iii) Energy management consultant; or (iv) Original Equipment Manufacturer (OEM) or their authorized agent, and signed by a professional with one of the following credentials: (i) Professional engineer license; (ii) Engineering technologist certification; or (iii) Accreditation by the Association of Energy Engineers as a Certified Energy Manager or Certified Measurement and Verification Professional 6. Eligible Technology Peak demand reduction can be achieved by upgrading or implementing, among others, any of the following technologies ("Eligible Technology"): Lighting upgrades and controls Industrial Process HVAC re-design, e.g., free cooling or ice storage Equipment replacement e.g. chillers, fans, pumps Variable speed drive motor controls Building envelope Building automation systems Deep lake water cooling Natural gas-fired generators Other technologies or products that improve the energy efficiency of a facility load, or shift such load to off peak periods, such as Combined Heat and Power (CHP), solar photo-voltaic (solar PV) and solar water heating Page 5 of 11

6 7. Peak Demand Reduction Periods Peak demand reduction is determined and calculated in accordance with the following criteria: (d) Demand reduction measured in kilowatts, achieved during June 1 to September 30 ("Summer Peak") between the hours of 7:00 and 19:00 will be 100% eligible for financial incentive. Demand reduction measured in kilowatts, achieved during October 1 through May 31 of the following year ("Winter Peak") between the hours of 7:00 and 19:00pm will be 70% eligible for financial incentive. Demand reduction measured in kilowatts, achieved during off peak periods, January 1st through December 31st, between the hours of 19:00 and 7:00 of the following day is NOT eligible for financial incentive. The higher of the Summer Peak and the adjusted Winter Peak (as per above) is eligible for incentive. Note: kwh savings in all time periods will be eligible for incentive. 8. Eligible Projects There are three general types of eligible Projects: (i) (ii) (iii) Projects where there is industry-accepted technical information for the electrical equipment or devices to be upgraded or replaced. The technical information may be used to estimate the peak demand reduction. For example: (i) upgrading of fluorescent lighting from T12 with magnetic ballast to T8 with electronic ballast; (ii) upgrading of electrical equipment to a more efficient replacement of the electrical equipment generating the same output. Projects having a "behind-the-meter" generator and the generated power is at a constant output level. The peak demand reduction is the output the generator is set to deliver and the kwh savings is based on the number of hours of operation. Projects where there is no established industry-accepted technical information for the baseline measures and/or new measures, and there is no electricity generation having a constant output. For such Projects, Toronto Hydro may accept the peak demand reduction and annual energy savings based on acceptable engineering practices. The Applicant is invited to submit its proposed methodology for calculating peak demand reduction and annual energy savings for consideration by Toronto Hydro. Toronto Hydro shall determine the acceptability of such methodology in its sole discretion. Peak demand reduction or energy savings must not be achieved through the curtailment of business output. For example, shutting down a production line without increasing the efficiency and output of another production line to compensate will not be an acceptable or eligible Project. For lighting retrofit measures (not including lighting retrofit measures for in-suite lighting), the following shall apply: (i) Peak demand reduction achieved from indoor lighting that is always on during the day, such as indoor parking garage lights, exit signs, in-store lights, building hallway lights, office lights, etc., are eligible as demand reductions for both summer and winter. Page 6 of 11

7 (ii) Peak demand reduction achieved from outdoor lighting, such as for parking lots, store signage, etc., is not eligible for summer, but is eligible for winter. (d) Demand reductions from upgrading multi-residential in-suite lighting is eligible but subject to a peak kw savings period adjustment factor of 50% in consideration of the fact that in-suite lighting is generally not in use during peak periods. (e) Examples of eligible Projects for illustration: Example 1 A multi-residential apartment building owner wants to upgrade his existing chiller to a high efficiency chiller system. The baseline load measurement of the existing chiller during the months of July through September (Summer Peak) is 423 kw. The replacement chiller load measurement is 373 kw; a difference of 50 kw. Therefore, 50kW of peak demand reduction is eligible for financial incentive. Example 2 A multi-residential apartment building proposes to replace existing in-suite incandescent light bulbs to energy efficient compact fluorescent lighting (CFL), and upgrade the underground parking garage lighting, as follows: 1. Replacing 1,000 60W in-suite light bulbs with 15W CFL bulbs. The demand reduction for the in-suite lighting is: 1000x(60-15)x0.5 (in-suite lighting adjusted as per Section 4) = 22.5kW 2. Converting 200 parking garage T12, 2-lamp, 40W fluorescent tubes and ballasts (93W) to T8, 2-lamp, 32W fluorescent tubes with electronic ballasts (63W). The underground parking garage demand reduction is: 200x(93-63)= 6.0kW. The Summer Peak demand reduction is (22.5kW + 6kW) = 28.5kW. The Winter Peak demand reduction is 28.5 kwx0.7 = 19.95kW. The higher of the two is eligible for financial incentive. Example 3 An industrial company is replacing 100 existing 455 W metal halide fixtures with linear fluorescent T5 HO high bay fixtures complete with motion sensors. The retrofit qualifies for an incentive based on the kw demand reductions or the system kwh savings or a combination thereof. 1. Replacing W metal halide fixtures with T5, 4-lamp HO linear fluorescent tubes with electronic ballasts (225 W). The demand reduction is: 100x( )= 23.0kW. 2. The lights are currently on 12 hours a day, 6 days a week, 52 weeks a year. Therefore, the annual operating hours is 3,744 (12x6x52). The kwh consumption is 3,744 (100 fixtures x 225W) x 3,744 hours= 84,240 kwh. With the installation of the motion sensors, the annual operating hours is anticipated to be 2,500, based on operational information specific to this Page 7 of 11

8 industry. The new kwh consumption is (100 fixtures x 225W) x 2,500 hours= 56,250 kwh. The system annual kwh savings is 27,990 kwh. The demand reduction is 23.0kW. The system kwh savings is 27,990 kwh. A financial incentive would be paid based on both the demand reduction resulting from replacing the fixture and the annual kwh saving measures resulting from the installation of motion sensors. 9. Project Permanence The Applicant shall ensure that the Project remain in service and delivering the peak demand reduction for a period of at least 36 months following Project completion, failing which the Applicant shall be deemed to be in default of this Agreement and Toronto Hydro may request repayment of the financial incentive. 10. Support For support regarding BIP, contact Toronto Hydro at (416) Due to the anticipated high interest in the BIP, please allow at least 72 hours for a Toronto Hydro representative to respond to your inquiry. PART E TERMS OF AGREEMENT I, the Applicant, agree to the following terms and conditions (the "Agreement"): 1. Financial Incentive Payment Toronto Hydro shall pay the Applicant a financial incentive payment upon "Project Completion" of the Project described in Part 1, Project Application ("Project Application"). Project Completion means that the Project has been completed and the Applicant has: (i) submitted invoices, receipts and where applicable, reports required to verify performance; and (ii) the peak load reduction has been achieved and verified by Toronto Hydro, in its sole discretion. The amount of the financial incentive shall be calculated in accordance with the actual achievement of the peak demand reduction as verified by Toronto Hydro, in its sole discretion. The financial incentive payment will be paid in the form of a lump sum payment. The approved financial incentive payment is inclusive of all applicable taxes, except GST. Toronto Hydro will not be responsible for any tax liability imposed on the Applicant as a result of any financial incentive given pursuant to this Agreement. Toronto Hydro shall have no liability for any amounts in connection of the Project in excess of the financial incentive payment. Notwithstanding anything else contained in this Agreement, the Applicant agrees and acknowledges that Toronto Hydro shall have no obligation to pay any monies hereunder until it has determined in its reasonable discretion that the Project has attained the peak demand reduction as set out in the Project Application. All invoices for financial incentive payment must be submitted to Toronto Hydro by November 1, Toronto Hydro will not be responsible for payment of the financial incentive to the Applicant if invoices are received after November 1, Applicant Acknowledgements I did not begin the Project prior to receipt of Toronto Hydro's Project Approval Letter or upon entering into a Contract, as applicable. The information I have provided in this Application and in any attachments is true, correct and complete; I have read and understood the terms and conditions of this Agreement and agree to abide by the terms set forth in the Application, the Agreement and all attachments. Page 8 of 11

9 (d) (e) (f) (g) (h) (i) (j) (k) (l) Toronto Hydro alone reserves the right to determine eligibility for the financial incentive. Toronto Hydro alone shall submit the incentives paid under this Agreement for credit or recognition by the Ontario Power Authority. I have not and shall not receive funding in or from any other Ontario Power Authority as it relates to the Project. I have the necessary power, authority and capacity to enter into this valid and binding Agreement. I am not a non-resident of Canada within the meaning of the Income Tax Act (Canada), as amended. I under that in order to receive the financial incentive may require inspection and measurement of the performance of the Project. Therefore, I agree to provide access to the Project site for the purposes of Toronto Hydro and/or its agents or assigns. I agree to comply with all applicable laws and requirements of all governmental authorities, and obtain and maintain all permits, licenses, insurance and approvals as may be required in connection with the Project during the Term (as defined in Section 9 below) of this Agreement. I agree to maintain the Project in service, without any modification, for a continuous period of at least 36 months. This section shall survive the Term of this Agreement. I agree to maintain to complete and accurate records for Toronto Hydro to verify the completion of the Project for three (3) years following payment of the financial incentive and provide Toronto Hydro and the Ontario Power Authority, with reasonable access to such records. This section shall survive the Term of this Agreement. 3. Confidentiality Each party shall maintain in strict confidence any and all proprietary and confidential information it may receive about the other party under this Agreement, and will not disclose such confidential information to any other party without the prior written consent of the disclosing party. Notwithstanding the foregoing, Toronto Hydro shall be permitted to disclose confidential information regarding this Agreement to the Ontario Power Authority and the Ontario Energy Board, it principle regulator. The Applicant further acknowledges that Toronto Hydro is subject to the Municipal Freedom of Information and Protection of Privacy Act (Ontario) and may be required to disclose confidential information concerning this Agreement in accordance with the provisions thereof. This section shall survive the Term of this Agreement. 4. Liability and Indemnity The Applicant shall be liable for and shall indemnify and hold Toronto Hydro and its Representatives harmless from and against any and all claims, loss, cost or damages, including consequential damages, expenses and costs for injury to or death of any person, or damage to or destruction of property of any person arising from or occurring by reason of (i) any act or omission of the Applicant or its Representatives relating to this Agreement; (ii) the Applicant's misrepresentation or breach of a covenant or material obligation under this Agreement or (iii) the Applicant's actual or alleged implementation of the Project and its operation or any matter contemplated by this Agreement whether negligent or otherwise. Notwithstanding the fact that Toronto Hydro may have reviewed the information contained in the Application for the purpose of assessing the possible reduction of peak demand as a result of implementing the Project, it is understood and agreed that Toronto Hydro shall not be held liable for, and makes no representation or warranty regarding the Project, expressed or implied, including, but not restricted to, any representation or warranty as to the fitness of the design or the capability of the material, equipment or workmanship in any features or measures included in the Project or with respect to the expected or anticipated energy demand reduction, nor does Toronto Hydro warrant or certify that any equipment, features or measures included in the Project will satisfy the requirements of any law, rule, specifications or contract or that a financial incentive will be payable. This section shall survive the termination of this Agreement. Page 9 of 11

10 5. Environmental Attributes Applicant hereby transfers and assigns to Toronto Hydro, unconditionally and absolutely, all of its right, title and interest in and to all benefits or entitlements associated with decreased environmental impacts now or in the future, direct or indirect, arising as a result of, relating to or in connection with this Agreement, and the right to quantify and register these, including without limitation, any renewable energy certificate, credit, reduction right, offset, allocated pollution right, emission reduction allowance (collectively, the "Environmental Attributes"). Toronto Hydro shall be entitled, unilaterally and without the consent of the Applicant to deal with Environmental Attributes in any manner it determines, regardless of whether any consideration is being received by the Applicant. 6. Assignment The Applicant may not assign this Agreement, in whole or in part, without the prior written consent of Toronto Hydro, which Toronto Hydro may decline in its sole discretion. 7. Amendments This Agreement may be amended only by mutual written agreement of the parties or by notice from Toronto Hydro. 8. Non-waiver No failure to exercise and no delay in exercising, any right or remedy under this Agreement will be deemed to be a waiver of that right or remedy. No waiver of any breach of any term of this Agreement will be deemed to be a waiver of any subsequent breach of that term. 9. Term Subject to any termination rights herein, the term of this Agreement shall commence on the date first written on the Project Approval Letter and shall terminate on November 1, 2011 or following Project Completion by the Applicant, whichever is earlier (the "Term"). 10. Termination Either party shall have the right, in its discretion, to terminate this Agreement by giving a written notice of termination to the other party, where the other party has breached any covenant or material obligation under the Agreement, and such breach has not been remedied within 15 days after written notice thereof by the other party. 11. Independent Contractors Nothing in this Agreement shall be deemed to constitute a partnership or a joint venture or to create any agency or fiduciary relationship between the parties. 12. General Terms This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements, negotiations, discussions, representations, warranties and understandings, whether written or verbal. This Agreement is governed by, and is to be construed and interpreted in accordance with, the laws of Ontario. If any term of this Agreement is or becomes illegal, invalid or unenforceable, the illegality, invalidity or unenforceability will be deemed severable and will not affect any other term of this Agreement. 13. Definitions In addition to terms defined in the body of the Agreement, "Business Days", means a day other than a Saturday or Sunday or statutory holiday in the Province of Ontario or any other day on which banking institutions in Toronto, Ontario are not open for business; and "Representatives", in reference to a party, means the party's directors, officers, employees, agents, contractors and volunteers, the party's Affiliates Page 10 of 11

11 (as defined in the Ontario Business Corporations Act) and such Affiliates' respective directors, officers, employees, agents, contractors and volunteers. Page 11 of 11