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Home My WebLink About20220914 - Sustainability Advisory Board - Electrification Campaign #2Building Electrification Update Sustainability Advisory Board September 14, 2022 What is Building Electrification? •Replacing gas or propane burning appliances with clean and efficient electric appliances •Heat pumps are the enabling technology for widespread building electrification •A whole building system approach is needed for heat pumps to be successful in cold climates Source: https://rmi.org/insight/decarbonizing-homes/ Suggestions from the 4/13/22 Sustainability Advisory Board discussion •Targeted outreach to homeowners with equipment that is close to the end of it’s life •Educate residents on the additional benefits (air quality, cooling, comfort, etc.) •Identify strategies to advocate for renters •Target smaller units and ADU’s •Develop materials to help the community through the electrification process (local case studies, a step-by-step guide, tours of electrified homes) •Explore financing and incentive options to decrease the initial purchase burden •Partner with local contractors to provide training on right sizing equipment and cold climate installations What We Heard Source: EIA Residential Energy Consumption Survey (RECS), 2015 Household Energy Consumption Space Heating 44% Water Heating 19% Air Conditioning 8% Lighting 5% Refrigeration 3% All Other 21% End-use Consumption in U.S. Homes Heat Pump Water Heaters (HPWH) •Also known as “Hybrid Electric Water Heaters” •HPWHs work like refrigerators in reverse to move heat from the surrounding room through refrigerants to heat water in the storage tank •Installation location within the home can be a challenge •Typically more expensive upfront cost than conventional options •Typically installed by plumbers Water Heater Technology Effective Efficiency Natural Gas & Propane 70% Electric Resistance 93% Heat Pump 296% Air Source Heat Pumps (ASHP) for Heating and Cooling •Ductless mini-splits and centrally ducted systems •Tight building envelope and right sizing equipment is key to efficiency •In addition to heating, ASHPs can provide cooling and air filtration •The cold climate technology has significantly progressed, but backup heat and cold climate best practices are still important considerations •Typically installed by HVAC contractors Technology Effective Efficiency Natural Gas & Propane Furnace 95% Electric Resistance 100% Air Conditioners 498% ASHP –Heating 253% ASHP -Cooling 557% Bozeman Space and Water Heating Fuel Source 0% 20% 40% 60% 80% 100% 120% Single Family Space Heating Multi Family Space Heating Total Space Heating Total Water Heating Household Fuel Use by Type for Space Heating and Water Heating Source: NREL LEAD & EIA 2015 RECS Natural Gas Electricity Delivered Fuel (Propane) Bozeman Monthly Bill Impacts Technology Installed in Single Family Home Cooling Assumption Fuel of Existing System before Heat Pump Conversion Monthly Bill Savings per Home 15 Year Savings Per Home Bill % Reduction Air source heat pump Home has existing AC Natural Gas -$23 -$4,140 -47% Electricity $25 $4,500 53% Home does not have existing AC Natural Gas -$31 -$5,580 -72% Electricity $17 $3,060 44% Electric heat pump water heater N/A Natural Gas $0 $0 1% Electricity $23 $4,140 69% Source: RMI Electrify Cohort Through the cohort we were able to: •Collaborate with and learn from other communities and industry professionals •Access regional and national data •Learn about electrification program development strategy HRDC’s Weatherization Program and the Weatherization Training Center (MSU Extension) both participated in aspects of the cohort RMI Electrify Cohort City of Bozeman Electrification Initiative Contractor Engagement, Education, and Workforce Development Community Outreach Financing and Incentives LMI Approach Free training for local plumbers and interested industry professionals Partners: NEEA, NorthWestern Energy, Pacific Plumbing, City of Bozeman and Rheem Local HPWH Training Online Contractor Electrification Education •Partnership with MT DEQ and Missoula •Adapted from a program developed by Michigan Saves •Starting point for developing approved contractor lists 5 online modules, each 15-20 minutes long 1.Electrification 2.Do Heat Pumps Work in Cold Climates? 3.Heat Pump Opportunities 4.Sales and Value Proposition for Air Source Heat Pumps 5.Water Heating, Geothermal, and Contractor Resources Source: Michigan Saves The City is currently in the process of organizing a roundtable discussion with local and regional industry professionals to discuss what we can do as a community to advance the adoption of air source heat pump for heating and cooling in the City of Bozeman. Goals of the Roundtable: •Learn from the industry professional’s experience and knowledge •Discuss local drivers impactful incentives for heat pump adoption •Identify ways the City can help enhance workforce development •Engage the local industry in electrification program development Local Roundtable Community Outreach –In Progress Wildfire Smoke and Heat Outreach Social media and online resources related to creating comfortable and safe indoor spaces during times of wildfire smoke and heat. •Tightening the building envelope •Efficient cooling strategies (including heat pumps) •Air filtration Local Case Studies •Bridger View Development (partnership with NEEA and development team) •Residential retrofits •ADU •Multi-Family housing project •New construction (residential and commercial) Community Outreach –Upcoming Develop Community Outreach Campaign –Spring 2023 •Targeted outreach campaign for residents •Resources for residents and building community on IRA rebates, tax credits, and other incentive programs •Share approved contractor list •How to guides, local case studies and other educational resources Low Income and Renters •Focus on multi-family housing retrofits and new development •Utilize IRA for LMI homeowners and multi-family property owners •Continue partnership with HRDC Weatherization Program and Weatherization Training Center •Explore options to develop a pilot retrofit rebate program for LMI housing 0% 20% 40% 60% 80% 100% 120% Single Family Multi-Family Income Breakdown of Residents Source: NREL LEAD Other (80%+ AMI) Moderate (60-80% AMI) Low (0-60% AMI) Only 11% of multi-family units are owner-occupied IRA Home Electrification High Efficiency Electric Home Rebate Program (HEERA) •10 year rebate program to help LMI families electrify their homes •$4.275 billion will be distributed by state energy offices •Household rebate maximum is $14,000 •Income dependent •Rebates extended to multifamily buildings if 50% of residents are LMI HEERA Rebates Point-of-Sale Rebate Max $ Heap pump HVAC $8,000 Heat pump water heater $1,750 Electric stove/cooktop $840 Heat pump clothes dryer $840 Breaker box $4,000 Electric wiring $2,500 Weatherization $1,600 Energy Efficient Home Improvement Credit (25C) •Households can deduct up to 30 percent of the costs for eligible home improvements that year with a $1,200 annual limit (for equipment and installation). •Energy efficient standards apply, not limited to all electric. Tax Credit 25c Max $ Home energy audit $150 Exterior doors $500 Exterior windows; central AC; electric panel upgrades; water heaters or boilers $600 Heat pumps; HPWH; biomass stoves/boilers $2,000 IRA Home Electrification Home Energy Performance-Based, Whole-House Rebate (HOMES) Program •$4.3 billion distributed by state energy offices for energy efficiency and electrification upgrades for LMI and non-LMI homeowners and multifamily buildings based on modeled or measured energy savings. HOMES Rebates Maximum Amount Non-LMI Homeowners Up to $4,000 or 50% of project cost for a 20-35 % reduction LMI Homeowners Up to $8000 or 80% of project cost for 20-35 % reduction Multifamily Buildings Up to $400,000 or 50% of project cost for a 35 % reduction (buildings with 50 percent LMI residents can claim up to 80% of project cost) IRA Home Electrification Additional IRA Programs Related to Electrification Residential Clean Energy Tax Credit (25D) EV Tax Credit (30D) Improving Energy Efficiency, Water Efficiency, or Resilience of Affordable Housing (Loans and grants issues through HUD) Assistance for latest and Zero Building Energy Code Adoption (grants through DOE) Energy Efficient Commercial Buildings Deductions (179D) Unified Development Code Site Orientation EV Ready/ EV Installed LID H2O Conservation Local Food Recycling/ Compost Planned Development Zone (PDZ) Affordable Housing Historic Preservation Sustainability Transportation Water Conservation Non-Renewable Energy Electrification, Efficiency, Renewables, EV Charging Building Code (IBC -> IECC/ASHRAE) Solar-Ready Residential Solar-Ready Commercial Zero Energy Commercial (prescriptive or performance) Base code+ Onsite/offsite RE EE + Onsite RE EE + RECs Unbundled Green Tariffs or vPPAs (need utility cooperation) Model HOA Covenants Electrification Campaign CPACE TIF Sustainable Design in Development Code and Building Code City of Bozeman Electrification Initiative Contractor Engagement, Education, and Workforce Development Partner with local contractors to provide training on right sizing equipment and cold climate installations Community Outreach Targeted outreach to homeowners Target smaller units and ADU’s Outreach Materials (local case studies, a step-by-step guide, home tours) Financing and Incentives Explore financing and incentive options to decrease the initial purchase burden LMI Approach Identify strategies to advocate for renters