Energy Incentive Programs, Montana
Updated December 2011
What public-purpose-funded energy efficiency programs are available in my state?
Montana's electricity restructuring law mandated the creation of a universal system benefit (USB) charge for the funding of energy efficiency, renewables and low-income energy assistance programs. The USB was set to expire at the end of 2009 but H.B. 27 removed the expiration date and extended the program indefinitely. In 2010, programs administered by Montana utilities budgeted almost $10 million to promote increased energy efficiency in the state.
NorthWestern Energy offers a variety of energy efficiency programs and services relevant to federal customers:
The E+ Business Partners Program offers custom incentives for electric and natural gas energy conservation and load management in both new construction and retrofit projects. NorthWestern Energy solicits proposals for this program from customers, architects, engineers and other energy efficiency providers. The deadline for proposals under the current Request for Proposals (RFP) is December 31, 2011, and may be extended if funding is available. Continuing RFPs will be issued until all available program funds are exhausted. Projects must demonstrate the cost-effectiveness of the proposed measures. Large USB "choice" customers are not eligible to participate in this program.
The E+ Commercial New Construction program provides financial incentives for incorporating energy-efficient design and equipment into projects that require construction or building permits.
The E+ Commercial Natural Gas Savings program offers rebates for installation of energy-efficient furnaces, boilers, water heaters, refrigeration and energy management system optimization for existing facilities and new construction projects. , Additional rebates for existing buildings only include duct sealing, insulation (pipes, ceiling and wall) and efficient windows. Incentive levels are valid through November 30, 2012 and are subject to change.
The E+ Commercial Lighting Rebate Program provides rebates for installing energy-efficient lighting. Remuneration depends on the type of equipment installed.
The E+ Commercial Insulation Program provides rebates to both electric heating customers and gas heating customers for a variety of insulation measures in existing facilities. New construction and large USB "choice" customers are not eligible.
The E+ Commercial Appliances program offsets the purchase cost of energy efficient electric office equipment for existing facilities and new construction projects. Incentive amounts are valid through November 30, 2012.
The E+ Commercial Air Conditioning program offers rebates for qualified chillers, cooling towers and other air conditioning equipment for existing facilities and new construction or major renovation projects. Incentive amounts are valid through November 30, 2012.The E+ Commercial Water Heating program provides financial incentives for efficient electric and gas water heating equipment, water saving measures and pipe insulation for both existing facilities and new construction. Incentive amounts are valid through November 30, 2012.
The E+ Premium Efficiency Motor Rebate Program offsets purchase costs of new NEMA Premium® motors (1 HP to 200 HP) in either new construction or for replacement of existing motors. Large USB "choice" customers are not eligible to participate in this program. Incentive amounts are valid through November 30, 2011.
The E+ Motor Rewind Program provides standardized rebates for rewind work on 20 HP through 500 HP motors. Only motors rewound by qualified Green Motors Practice Group members qualify for rebates. Large USB "choice" customers are not eligible to participate in this program.
The E+ Irrigator Program provides financial incentives and technical assistance for the installation of variable frequency drives in existing irrigation pump systems. Large USB "choice" customers are not eligible to participate in this program.
Energy Management Solutions is a free technical assistance service for commercial and industrial customers. It provides an online library of information with a database of technical and engineering documents, a commercial energy use calculator and a problem-solving hotline.
Flathead Electric Co-op offers rebates to offset the costs of energy- efficient lighting in existing facilities and new construction projects.
Smaller cooperatives in Montana such as Lincoln Electric Cooperative, Lower Yellowstone Cooperative, McCone Electric Cooperative, Montana-Dakota Utilities Co., Southeast Electric Cooperative, Yellowstone Valley Electric Cooperative and others offer various rebates to their customers for installing energy-efficient equipment in existing facilities and new construction projects.
What other utility energy efficiency programs are available to me?
Black Hills Power (BHP) offers rebates for energy-efficient heat pumps and water heaters as well as technical assistance programs including power factor correction, energy management rate options and load monitoring. Incentives for heat pumps equal $50/ton for replacement heat pump installation (air source or water source) and $125 to $150/ton for new heat pump installation depending on the type. Black Hills Power also offers incentive rates and grants to organizations wishing to locate or expand within BHP's service territory.
Bonneville Power Administration (BPA) offers several energy conservation programs relevant to federal customers:
BPA provides project analysis, development services and financial incentives through its Energy Smart Federal Partnership. Federal facilities located in areas that are served by public utilities receiving power from BPA can receive preliminary energy assessments, project development studies or specifications, and engineering support. Financial incentives for retrofits provide up to $0.35 per first year kWh savings (up to $0.46 for Federal Columbia River Power System) and $0.29/kWh or 2% of total building costs for new construction/major renovation projects. Incentives are capped at 100% of project cost (or 70% for projects earning more than $150,000 in incentives). In addition, a financing option is available to help federal agencies meet cost-sharing requirements. Projects at sites served by investor owned utilities may still take advantage of services but must reimburse BPA for its costs. Interested federal agencies may contact their local utility representative or Curt Nichols of BPA at cwnichols@bpa.gov, or 503-230-7515.
BPA's Implementation Manual, updated semi-annually, provides utilities, program partners and regional stakeholders information on how to implement energy-saving projects.
BPA's Technical Services Proposal (TSP) program guides customers in submitting proposals for energy efficiency technical services.The project should help implement of an energy efficiency project under one of BPA's conservation programs. A TSP generally consists of (but is not limited to) energy audits, feasibility studies, plant assessments, conservation project identification, implementation project proposal development, and measurement and verification tasks.
BPA's Commercial and Industrial Lighting program provides access to a lighting calculator, lighting trade allies, and incentives for energy-efficient lighting retrofits. More details are available through public utilities participating in BPA's program and through many of the Pacific Northwest's lighting trade allies.
BPA's Energy Smart Design program offers incentives for new, small offices via participating BPA utilities. Interested federal agencies should work with their design team and/or contact their local utility representative for details on how to participate.
What load management/demand response options are available to me?
BPA is assessing load management/demand response programs and conducting pilot programs in partnership with local distribution utilities. Currently it has no programs available to federal customers.
Montana-Dakota Utilities has proposed a new demand response program for commercial customers in its Integrated Resource Plan (IRP) for the 2011-2013 program years. The program is not yet available, but will apply to commercial and industrial electric customers with loads of 150 kW or greater who agree to curtail non-critical load during demand response events initiated by the utility. Customers will receive a capacity and energy payment for participation through a third-party demand response aggregator.
Utilities in the eastern Montana footprint of MISO (formerly the Midwest Independent System Operator) may enroll interested customers in any of MISO's various demand response offerings, from which they can receive payments for reducing load. Federal customers should contact their local utility representative to inquire about participation.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewables and Efficiency (DSIRE) website provides information on programs in Montana that offer incentives for renewable distributed generation. The following programs may of interest to federal customers:
Incentives for solar, wind, geothermal, hydro or biomass projects are available from NorthWestern Energy through the E+ Renewable Energy Program, which is funded through the USB program. Off-grid installations inside NorthWestern Energy's service area are not eligible for USB funds. Only customers with up to 1 MW of average electric load are eligible. Incentive funds of $3 per watt for solar PV ($6,000 maximum per customer), and $2 per watt for small-scale wind ($10,000 maximum per customer) are available through qualified installers. Applicants must submit a project proposal prior to the purchase or installation of a renewable system. Contract periods can be from one year to several years, depending on the negotiated contract.
The state government runs several programs that provide rebate and tax incentives for renewable energy, including biomass/ bio-fuels, solar, geothermal, and wind energy. Visit the Montana Department of Environmental Quality for information.
The Montana Department of Environmental Quality also offers the Alternative Energy Revolving Loan Program, which makes loans of up to $40,000 (subject to available funds), at a 2011 interest rate of 4%, for installation of alternative energy systems that generate energy for the borrower's use. Net metering is allowed. Additional energy efficiency measures such as efficient windows, fixtures, appliances and insulation may also be funded through the program. Eligible systems may include fuel cells that do not require hydrocarbon fuel, geothermal systems, low emission wood or biomass, wind, photovoltaic and small hydropower plants (under 1 MW) and other recognized non-fossil forms of energy generation.
Are there energy efficiency programs sponsored by the state government?
Montana's state government does not currently offer any energy efficiency programs to federal customers. For information on potential future opportunities, contact Energize Montana, a resource of the Department of Environmental Quality.
What additional opportunities are available to me?
Pacific Northwest investor- and publicly-owned utilities, as along with public representatives, have banded together to offer energy efficiency market transformation initiatives under the auspices of the Northwest Energy Efficiency Alliance (NEEA), a non-profit organization. Federal customers should be aware of NEEA initiatives that could benefit their facilities, such as the Lighting Design Lab, and the Northwest Energy Education Institute.
Federal customers whose utilities have area-wide contracts through GSA (e.g., Montana-Dakota Utilities), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.