READ FIRST – A Guide to the IMEA Electric Efficiency Program Grant Process
IMEA Electric Efficiency Program Application Forms
NOTE: No IMEA Electric Efficiency Program incentive funds will be paid without pre-approval from the local IMEA member community and a notice to proceed issued by the IMEA. See the “IMEA Guide to the IMEA Electric Efficiency Program Grant Process” and the Application forms for further details.
About the IMEA Electric Efficiency Program
The IMEA Electric Efficiency Program helps cities and their customers reduce their electric demand and their electric consumption and therefore reduce the Members’ wholesale power costs. This allows Members to shift dollars for other needs and to enhance their economic climate by making utility costs more affordable for established and potential businesses.
Under the program, IMEA Member cities are allocated funds to use as incentives for electric efficiency projects in their communities. Examples of projects that qualify for incentives include the installation of light-emitting diode (LED) street lights and lighting systems; replacement of inefficient industrial motors with more energy-efficient and variable-speed versions; installation of geothermal or other high-efficiency Heating, Ventilation and Air Conditioning (HVAC) systems; and, the installation of a variety of “smart-grid” and power-factor improvement equipment.
This program began in 2009. As of April 20, 2014, IMEA paid to its Members and their customers more than $2.8 million of incentives for electric efficiency projects that save an estimated 31.6 million kWh per year.
How the Program Works – An Overview
Each year, the IMEA will allocate $961,000 for the program. A portion of that year’s funding is then earmarked for the use of each IMEA member municipality or coop. Each member’s share is weighted according to its load forecast for the fiscal year (e.g., a member that uses 5 percent of IMEA’s total electric load is allocated 5% of the total energy efficiency funding for that year).
Members may submit energy efficiency project proposals on their own behalf or on behalf of their commercial or industrial electric customers. Members decide which projects they would like to receive all or part of that member agency’s share of IMEA Energy Efficiency funding.
Once a member forwards an application for funding to the IMEA, IMEA reviews it to ensure the application is properly and accurately completed. It then issues a Notice to Proceed for the project.
After the energy efficiency project is finished, the member or the member’s industrial or commercial customer submits a final application for funding along with invoices, receipts and other documentation to IMEA. IMEA then reviews the final application materials and issues the payment to the recipient.
Maximum Funding Level
Some energy efficiency projects may receive up to 75% of the total cost of the project, subject to available funding. Total funding costs include materials, labor and engineering. However, most incentives are figured either from menus of prescribed incentives per measure or on the basis of a rate per annual kWh saved.
Industrial/Commercial-Sector and Municipal/Public-Sector Tracks
There are two “tracks” for the program:
1. The industrial/commercial track (which uses the “blue” pre-application and final application forms), and
2. The municipal/public-sector track (which uses the “red” pre-application and final application forms).
The differences between the two tracks are that: a) the incentive levels for some measures for municipal/public-sector customers are enhanced, and b) IMEA member cities are eligible for incentives for small renewable generation projects.
Recently Added Features
In FY 2013-14, three new features were added to the IMEA Electric Efficiency Program:
- A Peak Shaving Bonus – An optional bonus may be added to the incentive for a project that saves kWs at the time of city peak.
- Power Factor Correction Bonus – An optional bonus may be added to the incentive for a project that brings a facility’s power factor up to a prescribed level.
- A Residential Program Option – An IMEA Member can set aside part of its Electric Efficiency Program Funding to use to pay out incentives for a locally administered residential electric efficiency program with guidelines and incentive levels developed with and approved by IMEA.
Application Cycles and Flexibilities
Applications for funding for qualified projects will be accepted on an ongoing basis. Subject to funding availability, approved projects will have reserved funds until the project is completed (though we usually ask that projects be completed within a year of approval).
Member funds that are not used in the current fiscal year may be carried over to the next year through fiscal year 2015-16 (April 2016). Funds not allocated by April 2016 are scheduled to be put into the IMEA Rate Stabilization Fund.
Direct All Questions Related to the IMEA Electric Efficiency Program to:
Rodd Whelpley
IMEA Program and Communications Administrator
217-789-4632
rwhelpley@imea.org
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