FREQUENTLY ASKED QUESTIONS: COMPREHENSIVENESS BONUS & ENERGY EFFICIENCY BUSINESS INCENTIVES (EEBI) CALCULATED PROGRAM CHANGES

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1 FAQ 1. How does a customer know if they qualify for a bonus? a. SDGE: Program participants that submit an application between March 1, 2013 and December 2, 2016 are eligible for a 20% bonus based on the value of each qualifying Incentive or Rebate. An Incentive/Rebate qualifies for a bonus when either A) the program participant has received at least 3 Incentives/Rebate in 3 separate categories (see Table 1) or B) two Incentives/Rebates in two separate categories plus new enrollment in either a Demand Response Program or SDG&E s Retrocomissioning program (see Table 1). Additionally, each individual qualifying Incentive/Rebate payment must equal at least 10% of the total Incentive/Rebate payment. Unlike the Incentive/Rebate payment, the bonus will be issued to the customer of record directly. Table 1. Comprehensive Bonus Categories Measure Type Categories Minimum Contribution Electric Lighting HVAC Smart Controls Building Envelope Refrigeration Process Programs New Participation in SDG&E s Retrocommissioning Program Participation New Enrollment in Demand Response Programs Enrollment Natural Gas Hot Water / Steam Heat Recovery Process Heat *Excludes Clean Gen, Peak Gen and Peak Time Rebate. 2. Can a customer cancel an existing application and resubmit on March 1, 2013 or after the start date to be eligible for the bonus? a. SDGE: No. The intent of the bonus is to show influence. 3. What if a customer submits 12 eligible measures at 1 premise? Are they eligible for 4 bonuses? a. SDGE: The customer can claim up to $25,000 per premise from March 1, 2013 December 2, Every 3 measures would be eligible for a bonus (as long as they met the eligibility criteria), but the most the premise can receive is $25, A customer bought their rebate item prior to March 1, 2013 and after January 1, 2013 and installed after March 1, 2013, is the customer eligible for the bonus? a. SDGE: No. The intent of the bonus is to show influence. 5. What if the customer works with multiple vendors? Who gets the bonus? a. SDGE: The customer will get the bonus under all circumstances

2 6. Will the bonus continue with the addition of 2016 to the Program? a. SDGE: Yes, the comprehensiveness bonus program will be extended through December 2, Why is the comprehensiveness bonus scheduled to end in 2016? a. SDGE: This is a pilot and will be evaluated for success. If successful and if continued by the CPUC we anticipate providing it in future funding cycles. 8. How will a customer know what stage they are in? How many comprehensiveness categories have they triggered? How far away they are from getting the incentive? a. SDGE: Will notify customers and/or project sponsors of the opportunity to earn a 20% bonus after 1 eligible category is triggered. 9. How will vendors be able to find out where prospective customers are in the process of getting a comprehensiveness bonus? If they can t get this info how will they be able to market this program to their customers? a. SDGE: Staff is currently exploring the possibility of having the Energy Savings Center provide updates similar to what is done with reservations for the rebate program. Final resolution on this is pending legal review. 10. Can a customer get more than 1 comprehensiveness bonus? a. SDGE: The comprehensiveness bonus is capped at $25,000 per premise and capped at $100,000 per customer per funding cycle. 11. What if a customer meets the bonus criteria by installing one measure? For example: HVAC Controls. They technically could hit two categories with one retrofit. a. SDGE: One measure cannot result in more than 1 end use being met. 12. What happens to a customer with a site that undergoes M&V? Does their analysis have to be completed by a certain date to be eligible? a. SDGE: Yes, all Installation Reports and Operational Reports for M&V must be received by SDG&E by December 2, SDGE will work with customers to expedite the M&V process. Due to the timing of this BONUS not all projects may qualify. 13. Is the bonus subject to the incentive cap at 50% of total project cost? a. SDGE: No. 14. Are deemed measures eligible for the bonus? a. SDGE: Yes. The process is no different for Deemed/Rebate measures than for Custom/Calculated measures

3 15. Have the incentive rates changed? a. SDGE: Yes. The new rates are provided in the table below Cycle Cycle All Basic Targeted Lighting $.05 $.03 $.08 Non Lighting ACRI $.15/ACRII $.09/Motors $.09 $.08 $.15 Gas $1/Therm $1.00 Peak Reduction $100/kW $150/kW* *Applications received prior to July 1, 2014 are eligible to receive $100/kW. 16. Is there a minimum size requirement for measures to count toward the bonus? a. SDGE: Yes, all eligible measures must account for at least 10% of total project incentive or rebate. This rule is designed to prevent the installation of token measures (e.g. a single light bulb or one foot of pipe insulation) in order to access the bonus. 17. How will the bonus impact the OBF Loan? a. The bonus will not impact any OBF terms or the loan. 18. Are there incentive limits? a. Yes. i. The incentive cannot exceed 50% of the Full Measure Cost for Retrofit Add On and Early Retirement projects. ii. The incentive cannot exceed 100% of the Incremental Measure Cost for Replace on Burnout and New Load projects. iii. No incentive payment shall exceed $1 million. 19. If the customer submitted an application prior to March 1, 2013 will they receive the new incentive rates effective on March 1, 2013 or the old incentives prior to March 1, 2013? a. The customer will receive the incentives effective prior to March 1,

4 20. Can in house labor costs be included as part of the project costs? a. Yes. This applies only to EEBI projects that are not being financed through SDG&E s On Bill Financing (OBF) Program. To submit in house labor costs associated with your project, you should provide a labor cost breakdown by timecards or spreadsheet, showing the following information: Employee Name Employee Title or Trade Designation The task or tasks that the employee was involved in For each task listed for each employee, provide: o The total number of hours charged, o The employee s hourly labor rate, and o The total labor cost for the employee. 21. What qualifies as an eligible project cost? DEFINITIONS a. The following excerpt from the Statewide Customized Offering Procedures Manual for Business describes eligible and ineligible project costs. Only eligible costs need be provided Project Cost Project costs must be included on the application. Allowable project costs may include audits, design, engineering, construction, equipment and materials, overhead, tax, shipping, and labor on a per measure basis. Projects costs should not include activities unrelated to the installation of energy efficiency measures. Labor costs can be contractor or in house if proof of direct project hours and costs are provided. 1. Define the word completed project a. SDGE: Installation report and complete invoices provided consistent with invoicing policy. Revised invoicing policy is pending. 2. Define comprehensiveness a. SDGE: Program participants that submit an application between March 1, 2013 and December 2, 2016 are eligible for a 20% bonus based on the value of each qualifying Incentive or Rebate. An Incentive/Rebate qualifies for a bonus when either A) the program participant has received at least 3 Incentives/Rebate in 3 separate categories (see Table 1) or B) two Incentives/Rebates in two separate categories plus new enrollment in either a Demand Response Program or SDG&E s Retrocomissioning program (see Table 1). Additionally, each individual qualifying Incentive/Rebate payment must equal at least 10% of the total Incentive/Rebate payment. Unlike the Incentive/Rebate payment, the bonus will be issued to the customer of record directly. Table 1. Comprehensive Bonus Categories

5 Measure Type Categories Minimum Contribution Electric Lighting HVAC Smart Controls Building Envelope Refrigeration Process Programs New Participation in SDG&E s Retrocommissioning Program Participation New Enrollment in Demand Response Programs Enrollment Natural Gas Hot Water / Steam Heat Recovery Process Heat *Excludes Clean Gen, Peak Gen and Peak Time Rebate. 3. How do I know which bonus categories my measures fall into? a. SDGE: A 1 to 1 table that includes a match for each measure and category can be found at sdge.com/eebi 4. Define Basic and Targeted a. SDGE: A 1 to 1 table that includes a match for each measure by Basic or Targeted rate can be found at sdge.com/eebi