Custom Energy Solutions Program Guidelines 2018 IID Office of Energy Management and Strategic Marketing

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1 IID A century of service. Custom Energy Solutions Program Guidelines 2018 IID Office of Energy Management and Strategic Marketing

2 Contents Section 1 2 Introduction 2 About IID s Custom Energy Solutions Program Section 2 4 Customer Eligibility Section 3 4 Rebate Limits Section 4 5 Eligible Energy Efficient Equipment 5 Pump Efficiency Measures Section 5 6 Quantifying Energy Savings Section 6 7 Program Enrollment and Process 7 Application Form 7 Preliminary Energy Analysis 7 Detailed Energy Analysis 7 Rebate Agreement 7 Equipment Installation 8 Form Submittal 9 Measurement and Verification 9 Baseline Determinations 10 Incentive Payments 10 Incentives from Other IID Programs 10 Incentives from Other IID Programs 10 Post-Installation Inspection 10 Installation Deadline Section 7 11 Choosing and Working with Your Vendors 11 Releasing Payment to Third Parties 12 Vendor as Payee Section 8 12 Rebate Section 9 12 Questions and Comments Appendix A Program Application and Payment Release Form Appendix B Installation Report Form Appendix C Sample Rebate Agreement 1

3 Introduction 1 Imperial Irrigation District s (IID) Custom Energy Solutions Program (CESP) is designed to promote energy efficiency amongst non-residential customers by offering financial incentives for energy saving improvements that include the installation of energy-efficient equipment and processes for the optimal performance of non-residential customers facilities. The CESP provides financial incentives to: 1) encourage the installation of energy efficient equipment, which reduces operating expenses, increases net operating income and provides a quicker return on investment; 2) allow for simple payback to the owner from energy savings within a short period of time. In some cases helps finance other equipment upgrade projects at little or no out of pocket cost; 3) reduce air pollution and help preserve natural resources; and 4) reduce the need for expensive peaking power plants, transmission and distribution facilities, which in turn, may reflect in lower electric rates. CESP is designed to identify operational improvements and equipment upgrades, though energy efficiency measures (EEMs or measures) that reduce energy consumption and demand. Successful project implementation involves a balance of understanding of the customer s goals and financing for the project(s). IID can provide its qualifying customers with technical assistance and expertise to preliminarily identify energy and cost-saving opportunities by attempting to locate inefficiencies within the commercial facility lighting, process and refrigeration loads. Customers are encouraged to submit an application to determine eligibility for a preliminary energy analysis (PEA) toward the implementation of energy conservation projects. A determination will be made during the pre-approval process regarding the necessity of a pre-inspection. About the Custom Energy Solutions Program CESP financial incentives are intended for the customer s use in the purchase and installation of qualifying lighting, refrigeration, air conditioning, food service, agricultural, and/or controls equipment. These incentives include the following cents per kwh for one year of energy savings: $0.11/kWh $0.03/kWh $0.18/kWh $0.25/kWh Lighting, Interior: Office Space, Production Line, etc. Lighting, Exterior: Off-site, Public Spaces, Parking Lots, Landscaping, etc. CESP will not pay incentives for the installation of incandescent, halogen, mercury vapor, probestart metal halide, T-12 linear fluorescent, or other outdated technologies when more efficient options are available. All products installed in exterior locations must be approved to outdoor use by their manufacturer. Existing fixtures must be operational in order to qualify for replacement incentives. Process Loads HVAC/Refrigeration 2

4 The goal with all energy efficiency measures (EEMs) is to improve the energy savings of commercial customers business facilities. Qualifying measures must retrofit, replace or upgrade old equipment with new, energy efficient technologies that exceed the applicable Title 24 energy efficiency requirements established by the California Energy Commission or current industry standards using IID approved project baselines, if Title 24 standards are not applicable. The following flowchart summarizes the CESP process: Custom Energy Solutions Program Process The customer submits program application and DEA IID reviews the application and DEA, and/or agrees to provide PEA IID presents the customer with CESP Rebate Agreement for its execution The customer installs measures and returns the signed Rebate Agreement to IID along with a project installation report IID verifies installation (if needed, monitors and verifies the energy savings) and pays incentive CESP rebates are paid by check mailed directly to the customer. The customer may also designate payment to a thirdparty payee. The amount of the rebate is contingent upon the energy savings attributed to the EEMs installed. Program application forms must be received by IID within the same calendar year as the commissioning date. The program has a limited budget. Rebate incentives are paid on a first-come, first-served basis, until allocated funds are depleted. Priority status will be determined by the date the completed application arrives at the IID mailing address printed on each form. Customers are encouraged to submit their application forms as early as possible. 3

5 Customer Eligibility 2 The CESP is open to IID s electrical account non-residential customers. Non-residential customers include industrial, municipal, government, agricultural and other commercial customers. Residential customers, including apartments and condominiums, are not eligible for rebate incentives under this program. However, common areas of apartment and condominium facilities may apply upon pre-approval from the IID. The CESP is intended for commercial customers who: receive electrical service from the IID; pay the state-mandated charges (Public Benefits Charge) on their utility bill; and have access to funding to implement the energy efficient measures within 12 months. Qualifying non-residential customers with wind, solar and other types of self-generation equipment are eligible for CESP rebates on a prorated basis if they purchase a portion of their electricity from IID. The amount of the rebate depends upon the percentage of the customer s total energy usage that is provided by IID. Example: If you generate 25 percent of your total monthly kwh usage and your utility provides the remaining 75 percent, you would be eligible for 75 percent of the CESP incentive levels. Rebate Limits There is a total rebate incentive limit of $150,000 that any single customer may receive during the program year, per account and/or project site. The rebate incentive offered for selected EEMs cannot exceed 50 percent of the total installed cost for the project s measure(s). Installed cost includes material, tax and freight cost plus installation labor. Customers who self install may charge installation labor at a mutually agreed rate competitive with the labor market with the IID s pre-approval. 3 4

6 Eligible Energy Efficient Equipment 4 All equipment installed must be new. Used or rebuilt equipment does not qualify for CESP rebates. Fuel switching equipment does not qualify. Only qualifying electric equipment shall be replaced. Categories of rebates under this program are lighting, food service, HVAC, refrigeration, agricultural, industrial processes and process pumps/motors. New Construction does not qualify for CESP, but may qualify for IID s New Energy Efficiency Construction Program (NCEEP). Please call for more information on these programs. LED fixtures must be UL-rated. Pump Efficiency Measures This measure is focused on two areas of pump efficiency and affords opportunities for eligible IID customers to take advantage of rebates and services offered. Pump retrofit/replacement and testing financial incentives for energy savings: Rebates are available to encourage the retrofit or replacement of eligible electrically powered water pumps to improve overall pumping efficiency. The rebate incentive is based as a process load on $.09/kWh x Annual kwh x (pre-post improvement efficiency). The EEM will also pay up to $200 for the cost of post-retrofit pump tests for eligible electrically powered water pumps that are serviced by an IID electric account. Customers should consult with a pump service company of their choice to evaluate whether the efficiency potential of their pump warrants a retrofit or replacement. It is recommended that the retrofitting or replacement of a pump be performed when the overall pumping efficiency (OPE) is below 50 percent, specifically those with long operating hours. The pumping system is defined as: the inlet works, which can be the water well, storage tank, or suction piping; the pump power source and transmission works; the pump itself; and discharge piping, which can be the column, pump discharge head, and piping within 10 of the pump discharge. Eligible pump retrofit/replacement projects include: Retrofit/replacement of the pump bowl and/or impeller; well cleaning that reduces draw down; removal/replacement of valves and fittings with high pressure losses, if they are within 10 feet of the pump head discharge; and actions that reduce air entrainment. 5

7 A valid pre-retrofit pump efficiency test must be performed before the retrofit project is implemented. A copy of the pre-retrofit pump efficiency test results must be submitted with the initial program application. The following are requirements for post-retrofit pump efficiency tests: If a water well, the pump tests must be at similar discharge pressures (+/- 5 psi of the pre-retrofit discharge pressure) and with a similar standing water level (+/- 10 percent of the pre-retrofit level). If a booster pump, either a) the same pump and impeller trim (if applicable) must be in place before and after the retrofit, or b) the tests are at the same operating condition (+/- 10 percent of pre-retrofit flow and total dynamic head). Project Completion Once the pump retrofit/replacement is completed, the customer shall conduct a post-retrofit pump test and forward the results to IID, along with a certificate of completion from the contractor or installer. A reimbursement up to $200 of the cost of the post-retrofit pump test is offered for eligible electrically powered water pumps, which are serviced by an IID electric account. Once the application is completed, submit the following to the IID: Completed application Pre- and post-pump test results Copies of paid invoices The calculated performance-based incentive amount is based on the following equation: Rebate = Measure Incentive Per kwh x Annual kwh x (pre-post improvement efficiency) The results of the pre- and post-retrofit pump tests, must include a calculation of the kilowatt hours needed to pump an acre-foot of water, the overall pumping efficiency, motor loading, power input to the pumping plant and the estimated energy and savings resulting from a pump retrofit/replacement. Quantifying Energy Savings 5 A prerequisite to receiving a CESP rebate incentive is quantifying the energy savings and the amount of rebates for eligible EEMs installed at your facilities. IID can assist qualified customers in quantifying energy savings and estimating rebates by conducting a PEA. The district encourages its customers to use their own qualified energy engineering consultant to quantify energy savings calculations to submit with the CESP application, which would expedite the application process. If IID deems the customer is not eligible for the program, then the customer will not be eligible for any rebate incentives or a preliminary energy analysis. All energy savings submitted for rebate incentives are subject to measurement and verification by IID. 6

8 Program Enrollment and Process Application Form In order to enroll in the CESP, customers must submit a program application to the IID (see Appendix A). A copy of the application is included in this document and may also be found at /cesp. IID reserves the right to verify the represented energy savings provided by the customer. Preliminary Energy Analysis Upon qualification and program approval, IID may conduct a preliminary energy analysis of the customer s facility during normal business hours: 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays. The intent of the analysis is to provide the customer with preliminary energy saving estimates and potential costs saving, so that the customer can better assess the energy savings opportunities under the program, prior to implementing the measures. An analysis may also be conducted to evaluate the existing conditions and verify the preliminary estimates of any analysis report submitted with the application, including estimated savings and estimated payback for each measure. Detailed Energy Analysis IID encourages the customer to confirm energy savings and their investment in measures identified in the preliminary energy analysis by conducting a fully engineered and detailed energy analysis and cost estimate. This process will accelerate the rebate agreement processing time, if all models are accurate, once the project has been completed and all measures are commissioned. Rebate Agreement The customer s detailed energy analysis or the preliminary energy analysis will be incorporated by reference into the CESP Rebate Agreement (see Appendix C). The Rebate Agreement will be based on information contained in the customer s detailed energy analysis or the preliminary energy analysis and will identify the EEMs eligible, the energy savings to be achieved from these measures, the amount of the rebate incentive to be received for each measure installed and the date by which the measures must be installed in order to remain eligible for rebate. Once the measures are installed, submit the executed CESP Rebate Agreement, along with paid invoices documenting purchase and installation costs. The Rebate Agreement Form and any other program forms that you sign and submit to IID constitute a legal contract and in addition to the terms and conditions contained in this handbook, collectively make up the CESP agreement with IID. Equipment Installation It is your sole responsibility to select, purchase, install and maintain the qualifying energy efficiency measures for which you receive a rebate incentive or you can hire a vendor to provide these services. Please note that some measures require installation by a licensed contractor, in which case the customer may not self install, unless properly licensed. All self installation of equipment must be installed pursuant to the manufacturer s specifications and according to all applicable federal, state and local laws. You must check with the manufacturer for their requirements. Prior to installation, be sure to review the terms and conditions for each measure contained in the CESP Rebate Agreement Form and this handbook. After the installation of the measures identified in the detailed energy analysis or preliminary energy analysis have been completed, you must submit a completed CESP Installation Report (see Appendix B) to IID. A copy of the 6 7

9 Installation Report is included in this document and can also be found at /cesp. Your signature on the CESP Installation Report denotes that you agree to continue using the installed EEMs for at least one year from the commission date. If you do not provide this benefit, IID has the right to a refund for a prorated amount of the rebate paid to you, depending on the period of time that you provided the related energy efficiency benefits. The following scenarios below outline various situations for which IID may seek a refund or partial refund of rebates: If you relocate If you change your service address and close your utility account at your old address, IID has the right to invoice you for a prorated portion of the rebate amount paid to you. If the rebated measures remain in use at the service address for at least one year after the commissioning of the measure, you will not owe a refund if the account becomes active again within 90 days through reconnected service by a new tenant or owner or if the account is only inactive temporarily (less than 90 days). If the Energy Efficiency Measure is removed If you remove any EEMs for which you have received a CESP rebate prior to one year, IID has the right to invoice you for a prorated portion of the rebate amount paid to you. If the Energy Efficiency Measure fails If prior to one year, an EEMs is no longer operating, you are responsible for repairing it or replacing it with equipment that offers the same energy savings as the measure for which you received a rebate. If you do not replace the equipment, IID has the right to invoice you for a prorated portion of the rebate amount paid to you. Check your vendor contract to determine that your equipment is under warranty. If a generator is installed If you install a generator at your facility and the generator bypasses IID s power in a portion of your facilities for which you received a rebate for installing EEMs, you are now only providing IID with a portion of the original energy saving benefits. In such cases, IID has the right to seek a prorated portion of your rebate amount. Form Submittal Submit completed program forms and any accompanying documentation to IID, either in person or by mail to the appropriate address below. IID is not responsible for delayed, lost or misdirected mail. Mailing Address Imperial Irrigation District Energy Management and Strategic Marketing PO Box 937 Imperial, CA Physical Drop-Off Location Imperial Irrigation District Energy Management and Strategic Marketing 333 S. Waterman Avenue El Centro, CA All CESP applications must be received by IID within the same calendar year of the commissioning date of the project. Rebate Agreements must be received at IID or postmarked by the deadline date noted in the CESP Rebate Agreement. CESP Rebate Agreements received after the deadline set forth in the Agreement are subject to disqualification from the program. This program has a limited budget. The program rebate forms will be accepted on a 8

10 first come priority basis, until allocated funds are depleted. Measurement and Verification A calculated approach to quantify the energy savings estimates must be utilized and must be verifiable. The calculated approach is based on mathematics and the use of engineering calculations to develop energy savings estimates for particular EEMs. If the energy savings associated with your CESP Rebate Agreement cannot be substantiated through the use of the Calculated Approach, IID may require the customer to submit a Measurement and Verification (M&V) plan for review and approval prior to the payment of any rebate incentives. If a (M&V) plan is required for participation in the program for an incentive payment back to the applicant, the IID will work with its customer and/or customer s consultant(s) to determine how much pre- and post-monitoring data is required. The IID may require (M&V) strategy prior to implementation. If so, the project may require submittal of the following before an incentive payment can be made: A pre-implementation report describing the proposed measures, an M&V plan, and live preliminary savings calculations. A post-implementation report describing the actual implementation of measures, including live updated savings calculations based on post-implementation M&V data and invoices to verify project costs. All relevant pre- and post-implementation snapshots and/or trend data. All project documentation should be clear enough to allow a reviewer unfamiliar with the participant site to understand the proposed savings calculations, verify installation of measures, and confidently validate the project impacts. The primary purpose of conducting an M&V plan is to provide reasonable estimates of energy savings and provide documentation history for future program evaluation. A program evaluation may occur several years after project completion, so thorough documentation is required. Plan requirements vary by measure and depend on the estimated savings of each measure. Baseline Determinations It is important to clearly describe and document the baseline for each measure. Baseline documentation should include photographs, graphical summaries of measured data points, and calculations of baseline performance where applicable. When Title 24 baselines cannot be used, the existing equipment or conditions at the facility will serve as the baseline. For some projects, baselines may not always be straightforward. When uncertain, applicants shall discuss measured baselines with IID before proceeding with documentation. Measure baselines are subject to IID s review and approval. Incentive Payments All rebate incentives are paid to the customer, unless requested otherwise by the customer. Incentive payments are based on the project s kwh savings for one year as determined by the Calculated Savings Approach. 9

11 If M&V is not required, the entire rebate incentive will be paid within six to eight weeks after the CESP Installation Report is approved. For installed and commissioned measures requiring an M&V plan, 60 percent of the total incentive amount will be paid upon the approval of the CESP Installation Report at the discretion of the IID. The balance will be paid once the energy savings are measured and verified by IID. The incentive amounts paid by IID will be based upon the actual performance of the measures and may range between 0 and 100 percent of the incentive amount for which applied. If, after installation, IID determines that the actual or projected energy savings associated with one or more EEMs fall below 85 percent of the energy savings specified in your program application forms, IID will pay a rebate incentive amount that is directly proportionate to the actual energy savings achieved. If this occurs and IID has already paid you the full rebate amount, then you are required to promptly reimburse the difference to IID. IID will pay the full incentive amount only if the CESP Installation Report or the M&V plan results substantiate that the actual or projected savings from the specified EEMs are equal to or greater than 85 percent of the energy savings specified in your program application forms. Full incentive payment from IID will not exceed 100 percent of the total incentive amount specified in your program application forms for each measure. Incentives from Other IID Programs If you participate in this program, you may not receive incentives for the same energy efficiency measures from other IID programs. Post-Installation Inspection Prior to issuing a rebate incentive check, IID, at its sole discretion, reserves the right to conduct a Post Installation Field Inspection of your facility to verify that the specified EEMs have been installed and are operating. If an IID inspector determines that one or more measures for which you applied for a rebate is not installed at your facility or is not operational, your Rebate Agreement may be rejected and you will not be approved to receive a rebate for the deficient measures. If the IID inspector determines that any measures for which you applied for a rebate are only partially installed or yielding a partial energy savings, you will be rebated only for the qualifying measures that have been fully installed and are properly operating. You must provide inspectors access to the equipment for verification purposes during normal business hours: 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays. Installation Deadline The deadline for project installation of all projects will be as indicated in the CESP Rebate Agreement. Projects not completely installed by this date (without first having obtained a written extension agreement from IID) are not eligible to receive a rebate incentive and will be rejected from the program. 10

12 Choosing and Working with Your Vendors 7 Vendors and energy services companies may contact and solicit eligible customers offering to retrofit their facilities with energy efficient equipment and to facilitate program participation. Vendors may even explain the program to you and help you identify potential retrofits at your facility. These vendors are not IID affiliates or employees they are individual contractors utilizing IID s rebate program to lower installed costs and market their products and services. You may choose to work with a vendor to purchase and install qualifying equipment. You are responsible for obtaining your own vendor(s). Vendors may include, but are not limited to: equipment manufacturers, distributors, wholesalers, or retailers; equipment contractors; and energy service providers. IID does not endorse or recommend vendors for CESP. You should select your vendor with care the same as you would select any other service provider that you would hire. Additionally, any licensing requirements are solely the responsibility of the vendor; however, it is the customer s responsibility to certify that their vendor holds the appropriate license for the work being performed. Furthermore, it is the customer s responsibility to certify that the improvement or installation has complied with any applicable permitting requirements. If the new, energy efficient equipment is removed or found to be deficient, you are responsible for replacing it even if your vendor was the recipient of the rebate incentive; otherwise, you are subject to refunding IID a prorated amount of the rebate. Be certain that you thoroughly understand your vendor s contract, including your equipment warranty. If you experience an equipment problem or if you are not satisfied with the quality of work of a vendor you hired, contact the vendor directly to resolve the issue. If the issue cannot be resolved to your satisfaction, consider contacting the Contractors State License Board at if your vendor is a licensed contractor. You may also contact the Better Business Bureau. In no event is IID responsible for equipment and/or vendor issues. Releasing Payment to Third Parties You may have your rebate incentive payment released to your vendor or any other third party payee. To make your rebate check payable to another party, you must complete and sign the Payment Release Authorization section in the application. A copy of the Application form is included in this document (see Appendix A) and can also be found at. The completed Payment Release Authorization section must be signed if you want your rebate check sent to a third party payee. Whether the rebate is paid directly to you, a designated vendor, or any other third party, you are still responsible for ensuring that the specified EEMs provide the energy savings as identified in your CESP Rebate Agreement form. 11

13 Vendor as Payee In many cases, vendors who are familiar with the CESP incorporate the potential rebate amount into their job estimate. In such cases, customers sometimes agree to have their rebate checks made payable to and mailed to their vendors. By signing the Payment Release Authorization section of the application, you are granting permission for IID to release information, such as your IID Contract Account Number and rate schedule, to your vendor, the new payee, as required to process the rebate form and resolve any issues surrounding your potential rebate. Rebate 8 Rebate Adjustment If you have received your rebate check and you dispute the amount of the rebate, call IID at (760) for assistance. IID will investigate the matter and you will be notified of the investigation results. If an adjustment is approved, you must return the original rebate check to IID, and a new check in the correct amount will be issued. If you have already cashed your check and you are entitled to a higher rebate amount, you may be required to submit additional forms. If you have already cashed your check and your rebate amount should have been lower, you will be invoiced for the amount of the overpayment. Questions and Comments You may address any questions or comments regarding the program to: 9 Energy Management and Strategic Marketing Section (760) cesp@iid.com For information on other energy management programs offered by the IID, please visit /cesp. 12

14 2018 Custom Energy Solutions Program (CESP) Please complete this application, sign and mail it with supporting documentation to: IID Office of Energy Management and Strategic Marketing, P.O. Box 937, Imperial, CA Customer and Account Information (Account Holder) Appendix A Application Company Name IID Contract Account Number Contact Name Title Site Name Installation Address City State Zip Payment Mailing Address (if different than installation address) City State Zip Phone Number Fax Number Address 2. Applicant (only complete this section if you are not the Account Holder) Type (choose one): Company Name Vendor Tenant Parent Corporation Landlord Other: Payment Mailing Address City State Zip Applicant Phone Number Applicant Address 3. Payment Release Authorization (Skip this section if the payment will be made payable to the Account Holder) I am authorizing my rebate payment to be released to the Applicant listed in Section 2 of this application; furthermore, I understand that by signing this section I will not receive the rebate check from Imperial Irrigation District. I understand that releasing my payment to this third party does not exempt me from the program requirements outlined in Imperial Irrigation District s Custom Energy Solutions Rebate Agreement. I further understand and approve that the applicant may receive and use certain account information from Imperial Irrigation District, such as my account number and rate information as required to resolve any issues pertaining to the rebate requested through IID s Custom Energy Solutions Program. Signatures (Account Holder) Name and Title (Print) Date Why did you install the efficiency measure for this program? (choose one) To lower energy consumption Remodel Rebate incentive Other: IID Office of Energy Management and Strategic Marketing Page 1 of 2 V.1 (0118)

15 2018 Custom Energy Solutions Program (CESP) Application 4. Facilities Operations Profile Operating Hours Building Construction Year Facility Size (only conditioned space) Office Space Sq. Ft. Warehouse Sq. Ft. Manufacturing/Production Area Sq. Ft. Describe operations at the facility: Energy Systems (check all that apply) Unitary or Split System AC Units Process and Production Equipment Energy Management System Programmable Thermostat Chiller(s) Refrigeration System Air or Water Cooled Cooling Towers Evaporative Condensers Lighting (Interior) T8 T12 Boiler 5. Program Evaluation How did you hear about this program? (choose one) Bill Insert IID Website Family/Friends Newspaper Radio Social Media Other: 6. Applicant Acknowledgment I acknowledge that by submitting this program application it does not guarantee the acceptance of the customer into Imperial Irrigation District s Custom Energy Solutions Program. I further understand that, if accepted, IID expects a good faith effort to implement the energy efficiency measures proposed. IID will assist the Customer by providing technical and financial assistance, if appropriate, throughout the implementation process. I am authorized by the company listed in Section 1 of this application to submit this project application on its behalf, and I understand that it is the Customer s responsibility to verify by independent means all costs and savings estimates. Signature (Applicant) Name and Title (Print) Date IID Office of Energy Management and Strategic Marketing /solar Page 2 of 2 V.1 (0118)

16 Appendix B 2018 Custom Energy Solutions Program (CESP) Installation Report 1. Customer Company Name IID Contract Account Number Contact Name Title Site Name Installation Address City State Zip Installation Date(s) Phone Number Fax Number Address 2. Installation & Operation System (Company or its representative) certified that the Energy Efficiency Measures have been installed, functionally tested and currently operating per the design. All of the proposed measures included in this installation report have been determined based on a calculated savings approach. Required information such as M&V monitoring data or calculations as requested by IID is attached per approved M&V pan. List the installed measures and changes made during the installation below. Installation Address City State Zip EEM No. 1. Energy Efficiency Measure (EEM) Quantity Make / Model Installed Cost Annual kwh Savings Annual kw Reduction Annual Savings ($) Incentives per kwh CESP Incentive Total Signature (Account Holder) Name and Title (Print) Date IID Office of Energy Management and Strategic Marketing Page 1 of 1 V.1 (0118)

17 2018 Custom Energy Solutions Program (CESP) Rebate Agreement 1. PROJECT DESCRIPTION This Agreement pertains to the Custom Energy Solutions Program ( CES Program ) Project(s) ( Project(s) ) described in the CESP Installation Report. IID shall pay Customer monetary incentives in accordance with the terms and conditions of this Agreement DOCUMENTS INCORPORATED BY REFERENCE The following documents are incorporated by this reference and are hereby made part of this Agreement: i) Customer s CES Program Application ii) Customer s CES Program Installation Report iii) Total Estimated CES Program Incentive Payment for Customer, attached hereto as Exhibit A iv) The CES Program Guidelines v) As applicable, customer Detailed Energy Analysis or IID s Preliminary Energy Analysis Report. Appendix C This Agreement is entered into between the Imperial Irrigation District (IID), and Customer, sometimes individually referred to as a Party and collectively as the Parties. 2. ELIGIBILITY A) CES Program funding is limited and is available on a first-come, first served-basis. Funds will be reserved only upon IID approval of the Projects recommended in Customer s DEA or IID s PEA Report. B) Projects must meet the following requirements to be eligible for incentives: 1. Project must be commercial and located within IID s service territory; 2. Projects will be evaluated using the Itemized Measure Approach, the Calculated Approach, and/or Measurement and Verification (M&V) (as described in the CES Program Guidelines); 3. Projects must exceed the applicable Title 24 energy efficiency requirements established by the California Energy Commission or current industry standards using IID-approved project baselines if Title 24 standards are not applicable; and 4. Projects must receive electrical service from IID. 3. SUBMITTAL REQUIREMENTS FOR PAYMENT As a condition of payment, Customer shall submit to IID the documents described below. Required documents include but are not limited to: (1)Where required under the Calculated Approach, complete engineering calculations to demonstrate energy savings and supporting documentation (including archival diskette, if applicable); (2) Schematic drawings and/or manufacturer specification sheets, if applicable; (3) Invoices and/or documentation to support Energy Efficiency Measure costs; (4) Additional project-specific documents as requested by IID; (5) CESP Installation Report Form; and (6) Operating Report if M&V is required. 4. INSPECTIONS As a condition of payment, Customer is responsible for ensuring that IID has reasonable access for all inspections, including but not limited to the following: (1) The Preliminary Energy Analysis; and (2) Post-Installation Field Inspections as necessary to verify equipment installation and to monitor the energy savings achieved by the Energy Efficiency Measures during the Term of this Agreement after such measures become operational. IID Office of Energy Management and Strategic Marketing Page 1 of 5 (0218)

18 2018 Custom Energy Solutions Program (CESP) Rebate Agreement 5. NO REPRESENTATION OF FITNESS: IID S OR ITS CONSULTANTS REVIEW OF THE DESIGN, CONSTRUCTION, OPERATION AND/OR MAINTENANCE OF THE PROJECT AND/OR ASSOCIATED ENERGY EFFICIENCY MEASURES SHALL NOT CONSTITUTE ANY REPRESENTATION BY IID AS TO THE ECONOMIC OR TECHNICAL FEASIBILITY, OPERATIONAL CAPABILITY, SAFETY AND/OR RELIABILITY OF THE PROJECT ENERGY EFFICIENCY MEASURES. CUSTOMER IS SOLELY RESPONSIBLE FOR THE ECONOMIC AND TECHNICAL FEASIBILITY, OPERATIONAL CAPABILITY, SAFETY AND/ OR RELIABILITY OF CUSTOMER S PROJECT AND THE ASSOCIATED ENERGY EFFICIENCY MEASURES. 6. PAYMENTS Incentive payments will be paid to Customer only after all CESP Program requirements (as set forth in this CESP Rebate Application Form and the CESP Program Guidelines) are met by Customer to IID s reasonable satisfaction. IID retains sole discretion to determine the appropriate baseline values and energy savings calculations used to determine incentive payments. Customer incentive payments shall only be paid on Projects that exceed Title 24 standards applicable when this Agreement is signed or industry standards in the absence of Title 24 standards. IID reserves the right to modify or cancel the incentive amount if the actual system installed differs from the calculated savings approach. Customer shall not be eligible to receive any CESP Program rebate incentive payment, or any portion thereof, which has been previously paid by IID prior to the execution of this Agreement. 6.1 INCENTIVE PAYMENTS The total incentive payment for each Energy Efficiency Measure shall not exceed the Project Cap of fifty percent (50%) of the total installed measure cost (calculated on per item basis), or the total estimated incentive amount, whichever is less. 6.2 IID will make the applicable incentive payment to Customer only after the appropriate documents have been submitted and approved, and the appropriate inspections of the Project have been satisfactorily completed. 6.3 All Projects must be installed and fully operational by the date indicated in the CESP Rebate Application to be eligible for incentive payments. 7. PENALTIES FOR FAILURE TO PROVIDE ENERGY SAVINGS BENEFITS A prorated portion of the rebate incentives paid by IID to Customer shall be repaid by Customer to IID if the utility does not receive at least seventy percent (70%) of the energy savings benefit for which the incentive is/are paid for a period of at least five years from the date of installation of the associated Energy Efficiency Measure(s) or for the duration of the rated life of the equipment, whichever is less. 7.1 Customer shall repay any incentive payments made by IID within 30 calendar days of notification by IID that repayment is required. IID is entitled to offset against payments owed to Customer any amount due to IID that remains unpaid 40 calendar days after IID s written demand for payment. IID Office of Energy Management and Strategic Marketing Page 2 of 5 (0218)

19 2018 Custom Energy Solutions Program (CESP) Rebate Agreement 8. TERM AND TERMINATION The Term of this Agreement shall commence upon the execution of this Agreement and shall extend through a period which is five years after the date on which the last EEM is installed and placed into service, unless the Parties terminate this Agreement at an earlier date by mutual written agreement. 9. ASSIGNMENT Neither Party shall assign its rights or delegate its duties without the prior written consent of the other Party, except in connection with the sale or merger of a substantial portion of its properties. Any such assignment or delegation without written consent shall be null and void. Consent to assignment shall not be unreasonably withheld. If an assignment is requested, Customer is obligated to provide IID with information relating to the proposed assignment as requested by IID. 10. PERMITS AND LICENSES Customer, at its own expense, shall obtain and maintain and cause its contractors to obtain and maintain licenses and permits required by federal, state, local, or other relevant governing or regulatory bodies necessary to perform this Agreement. Any failure by Customer or its contractors to maintain necessary licenses and permits constitutes a material breach of Customer s obligations under this Agreement. 11. ADVERTISING, MARKETING AND USE OF IID S NAME Customer will allow IID to use and disseminate Customer s Project energy savings results in its advertising and marketing of IID s CESP Program. Customer further acknowledges that it is not an employee, agent or representative of IID and Customer agrees that it shall make no representations or warranties of any kind to its customers, the public or to any person or entity on behalf of IID. 12. INDEMNIFICATION Customer shall indemnify, defend and hold harmless, and releases IID, its affiliates, subsidiaries, parent companies (including Imperial Irrigation District), officers, directors, agents and employees, from and against all claims, demands, losses, damages, costs, expenses, and liability (legal, contractual, or otherwise), which arise from or are in any way connected with any: (1) injury to or death of persons; (2) injury to or destruction of property; (3) violation of local, state, and/or federal law, common law, statute, or regulation, including but not limited to environmental laws or regulations; or (4) strict liability imposed by any provision of law; so long as such injury, violation, or strict liability (as set forth in (1) - (4) above) arises from or is in any way attributable to Customer s performance of, or failure to perform, this Agreement, however caused, regardless of any fault of IID whether active or passive, excepting only such loss, damage, cost, expense, liability, strict liability, or violation of law or regulation that is caused by IID, its officers, managers or employees. Customer acknowledges that any claims, demands, losses, damages, costs, expenses, and legal liability that arise out of, result from, or are in any attributable to the release or spill of any legally designated hazardous material or waste arising from the performance of this Agreement are expressly within the scope of this indemnity, and that the costs, expenses, and legal liability for environmental investigations, monitoring, containment, abatement, removal, repair, cleanup, restoration, remedial work, penalties, and fines arising from strict liability, or violation of any local, state, or federal law or regulation, attorney s fees, disbursements, and other response costs incurred as a result of such releases or spills are expressly within the scope of this indemnity. IID Office of Energy Management and Strategic Marketing Page 3 of 5 (0218)

20 2018 Custom Energy Solutions Program (CESP) Rebate Agreement 13. LIMITATION OF LIABILITY IID shall not be liable for any special, incidental, indirect, or consequential damages to Customer or to any third party or entity based on its performance or failure to perform this Agreement, or any aspect of performance contained herein. 14. INTEGRATION This Agreement, together with the documents incorporated by reference pursuant to paragraph 1.1, above, constitutes the entire Agreement and understanding between the Parties as to the subject matter, terms and conditions of the Agreement. It supersedes all prior or contemporaneous Agreements, commitments, representations, writings, and discussions between Customer and IID, whether oral or written, and has been induced by no representations, statements or Agreements other than those expressed herein. Neither Customer nor IID shall be bound by any prior or contemporaneous obligations, conditions, warranties or representations with respect to this Agreement. 15. NO ORAL MODIFICATION OF AGREEMENT No amendment, modification or change to this Agreement shall be binding or effective unless expressly set forth in writing and signed by an IID representative authorized to execute such an agreement. 16. WRITTEN NOTICE Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the addresses specified below: IMPERIAL IRRIGATION DISTRICT IID Supervisor Operations and Fiscal Systems 333 E. Barioni Blvd. Imperial, CA Fax Number: (760) CUSTOMER Company Name: Signature: Name (Print): Title: Date: Notices shall be deemed received (1) if personally or hand-delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m., or otherwise on the business day following personal delivery; (2) if mailed, three Business Days after the date the notice is postmarked; (3) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (4) if by overnight courier, on the business day following delivery to the overnight courier within the time limits set by that courier for next-day delivery. IID Office of Energy Management and Strategic Marketing Page 4 of 5 (0218)

21 2018 Custom Energy Solutions Program (CESP) Rebate Agreement 17. CONFLICTS BETWEEN TERMS Should a conflict exist between the main body of this Agreement and the documents incorporated by reference, the main body of this Agreement shall control. Should a conflict exist between an applicable federal, state, or local law, rule, regulation, order or code and this Agreement, the law, rule, regulation, order or code shall control. Varying degrees of stringency among the main body of this Agreement, the Documents Incorporated by Reference, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any conflict or inconsistency concerning this Agreement. 18. GOVERNING LAW This Agreement shall be interpreted in accordance with the substantive and procedural laws of the State of California. All actions or proceedings arising in connection with this Agreement shall be tried and litigated exclusively in State court located in the County of Imperial, State of California and/or Federal Court located in the County of Imperial or San Diego, State of California. The aforementioned choice of venue is mandatory, thereby precluding the possibility of litigation between the Parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in this paragraph. Each Party hereby waives any right it may have to assert the doctrine of forum non conveniens or a similar doctrine or to object to venue with respect to any proceeding brought in accordance with this paragraph, and stipulates that the State and Federal courts located in the Counties of Imperial and San Diego, California, respectively, shall have in personal jurisdiction and venue over each of them for the purpose of litigating any dispute or proceeding arising out of or related to this Agreement. Each party hereby authorizes service of process sufficient for personal jurisdiction in any action against it at the address and in the manner for the giving of notice as set forth in this Agreement. 19. EXECUTION AND EFFECTIVE DATE This Agreement has been executed by the duly authorized officers of the Parties and shall be effective as of the date of execution. CUSTOMER Company Name: Signature: Name (Print): Title: Date: IID Office of Energy Management and Strategic Marketing Page 5 of 5 (0218)