Cool Comfort Financing Contractor Webinar

In collaboration with

Agenda

• What is Cool Comfort Financing • Qualifying Upgrades & Eligibility • Financing – Terms, Details & Process • Becoming a Participating Contractor • Quality Control Process • Program Contact Information • Q&A

Limited time rates as low as 2 or 3% APR for qualifying HVAC projects.

Program goals: – Streamline HVAC

permit compliance – Achieve statewide

energy efficiency goals

What is Cool Comfort Financing?

Financing available for

Air Conditioner Min. 15 SEER & 12 EER

Furnace Min. 92% AFUE

Heat Pump Min. 8 HSPF, 15 SEER & 12 EER

All projects must include duct work to ensure HVAC efficiency. Must open and close permits.

Cool Comfort Financing: Benefits

Contractor Benefits

Increase your HVAC sales Quick 24-hr loan preapproval process

Make high efficiency more affordable for your customers

Participating contractors receive a free marketing starter kit

Homeowners – Flexible loan payback options. – Quality installations guaranteed by compliance

with codes and standards.

Local building departments – Identify opportunities to streamline permit

processes and increase compliance. – Higher likelihood of achieving local climate action

planning goals tied to HVAC alterations.

State of California – Opportunity to work with building departments to

gain deeper knowledge of permit compliance barriers and streamline processes.

– Increased compliance and higher likelihood of achieving statewide energy savings goals tied to HVAC alterations.

Cool Comfort Financing: Availability

• Los Angeles • San Diego • San Bernardino • Riverside • Inyo • Imperial

• Mono • Portions of:

– Orange – Kern – Tulare – King

Attached or detached single family homes served by at least one of the following utilities: Southern California Edison, Southern California Gas Company or San Diego Gas and Electric.

This includes the following counties:

Qualifying HVAC Upgrades

HVAC Installation Minimum Energy Efficiency Requirement

Central Air Conditioning Unit 15 SEER and 12 EER

Central Forced Air Furnace 92% AFUE

Heat Pump 8 HSPF, 15 SEER and 12 EER

The project must include one of the following duct improvements to ensure HVAC efficiency:

• Combination of duct sealing and duct insulation sealed to ≤ 10% leakage and insulated to ≥ R-8

• Duct replacement sealed to ≤ 6% leakage with ≥ R-8 replacement ducts.

Project Eligibility Requirements 1. Projects must be completed by a Cool Comfort Financing

Participating Contractor. 2. The property is served by at least one of the following utilities:

Southern California Edison, Southern California Gas Company or San Diego Gas and Electric. • Properties in the counties of Santa Barbara, Ventura,

and San Luis Obispo are not eligible. 3. The property is a single family home (attached or detached). 4. Home has a central, forced-air HVAC system and is not heated

by propane fuel. 5. Ensure compliance with applicable local permitting

requirements associated with the financed work.

Financing Terms

4.99% APR Limited Time: 2% APR

5.99% APR Limited Time: 3% APR

Financing Details

Financed amount from $2,500 with a maximum of $15,000.

APR = Annual Percentage Rate. Stated rates include a 0.50% discount for automatic payments and are based on a certain level of credit worthiness. At stated rates, monthly payments per $1,000 funded are:

• 5 year term: 2% - $17.53 4.99% - $18.87 • 10 year term: 3% - $9.66 5.99% - $11.10

Rates are subject to change at any time. Applicant must meet credit and income criteria. Membership required. Equal qualifying opportunity lender. Loan value may equal amount of qualifying scope of work. Rates subject to scope of work review.

Financing Application Process Contractor provides homeowner with the scope of work. • SUBMIT the SOW to the program to expedite

review: coolcomfort@thenergynetwork.com

Homeowner submits financing application packet to Matadors Credit Union for review: • Loan application • Income verification • Scope of work

Matadors Community Credit Union and The Energy Network will review application REQUIREMENT Submit a revised SOW if the approved SOW changes

Financing Application Process

Complete the project. Homeowner sends closing documents to Matadors Community Credit Union: • Certificate of Completion • Customer Information Release Form • Final invoice Funds are disbursed. 4

Contractor Eligibility Path A

1. Be a participating contractor in good standing with one of the following programs in Southern California Edison, SoCalGas or SDG&E territory: • Energy Upgrade California™

Home Upgrade • Investor-Owned Utility Quality

Installation Program • Home Performance with

ENERGY STAR 2. Sign the Cool Comfort Financing

Program Contractor Participation Agreement

Path B 1. Hold a current C-20 license in good

standing.

2. Submit current certificate of insurance that meets Program requirements, meet additional insured endorsement and submit additional insure endorsement certificates.

3. Sign the Cool Comfort Financing Program Contractor Participation Agreement.

OR

Become a Participating Contractor

1. Submit an interest form online 2. Review the Contractor Manual 3. Submit signed Participation

Agreement – Submit insurance information if

required.

4. Program administrator will confirm eligibility

Contractor Eligibility Process

• After we receive documentation, program administrators will review

– Cool Comfort Financing Participation Agreement

– Confirm eligibility

• We will inform you of approval & online listing within five business days

– http://action.theenergynetwork.com/ccf – www.energycenter.org/coolcomfort

Quality Assurance 1. 100% of loan applications are subject to desktop quality

assurance review. 2. Review will be based on the initial scope of work submitted.

• If scope of work is revised, a resubmission for approval is needed prior to work commencement.

3. Efficiency of the equipment and work performed must be specified on the invoice. • i.e. SEER, AFUE, HSPF, EER, R-value, Energy Factor

4. Work performed should not be visible from the public right-of-way. Please note on the invoice that work is not visible from the public right-of-way.

California Center for Sustainable Energy (CCSE) will verify permit compliance on a sample* of projects.

Upon receipt of approved Scope of Work, CCSE will: 1. Verify permit number is on file at local building department; assess

status of compliance (pending final inspection, closed, etc.) • If permit number is not found to be registered or closed, CCSE will

issue a written warning to contractor and discuss barriers to compliance and next steps necessary to close permit

• If contractor unresponsive, CCSE will reach out to homeowner

*All projects receiving promotional rate of 2 or 3% APR will be verified for permit compliance, thereafter, 5% of projects will be verified, selected via random sample.

Quality Control Process

CCSE will conduct field inspections on a sample* of projects:

1. In conjunction with permit compliance verification, CCSE will contact contractor to request CCSE’s attendance at HERS verification and/or Building Inspector final field inspection

– If scheduling is organized by homeowner, CCSE will work with homeowner to coordinate attendance at HERS or building inspection

2. At field visit CCSE will verify equipment listed on scope of work and invoice matches unit(s) physically installed, will document with photos

3. If equipment specifications do not match information listed, CCSE will issue a written warning and discuss discrepancy with contractor

*Approximately 25% of projects receiving promotional rate of 2 or 3% APR will be selected for field inspection, afterwards, 5% of projects will go through a field inspection, selected via random sample.

Quality Control Process cont’d

For a sample of projects not selected for field inspection, CCSE will request CF-1R, CF-2R and CF-3R Title 24 compliance as of 7/1/14, installation and field verification documents from contractor and/or HERS verification rater.

‒ If equipment specifications listed in Title 24 documents do not match scope of work and invoice, CCSE will issue a written warning and discuss discrepancy with contractor.

If contractor accumulates three warnings as a result of any QC review process throughout course of program, contractor will be given written notice of termination as a Cool Comfort Financing participating contractor.

‒ Program will remove company from online Cool Comfort Financing Participating Contractor List.

Quality Control Process cont’d

Program Contacts California Center for Sustainable Energy

• Path A Contractor Enrollment • Energy Upgrade California™

Home Upgrade • Investor-Owned Utility Quality

Installation Program • Home Performance with

ENERGY STAR • QC Process Contact Information (858) 244-1177 Cindy.OGrady@energycenter.org www.energycenter.org/CoolComfort

The Energy Network

• Path B Contractor Enrollment • Current C-20 license • Current certificate of insurance

meeting program requirements • Loan Application Process • Scope of Work Review Contact Information (877) 785-2237 coolcomfort@theenergynetwork.com action.theenergynetwork.com/ccf

OR

Questions?