Energy Incentive Programs, Montana
Updated November 2009
Below you will find questions and answers regarding Montana's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
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, renewable energy, and low-income energy assistance programs. The state budgeted more than $15 million in 2008 to promote increased energy efficiency through programs administered by Montana utilities and the Northwest Energy Efficiency Alliance.
NorthWestern Energy offers a variety of energy efficiency programs and services:
The E+ Business Partners Program offers custom incentives for electric and natural gas energy conservation and load management projects in both new and retrofit applications. NorthWestern Energy solicits proposals for this program from customers, architects, engineers, and other energy efficiency trade allies. The deadline for proposals under the current request for proposals (RFP) is December 31, 2009, and may be extended if funding is available. Continuing RFPs will be issued until all available program funds are exhausted. Large USB Choice customers are not eligible to participate in this program.
The E+ Energy Appraisal for Businesses Program provides free energy audits to identify energy efficiency opportunities for customers with peak demands of 300 kW or less.
The E+ Commercial Lighting Rebate Program provides rebates for installing energy-efficient lighting.
The E+ Premium Efficiency Motor Rebate Program offsets purchase costs of new NEMA Premium® motors, 1 horsepower to 200 horsepower, in either new construction or retrofit applications. Rebates for motors larger than 200 horsepower are customized based on the incremental cost of the motor and the value of the electrical savings. Large USB Choice customers are not eligible to participate in this program.
The E+ Motor Rewind Program provides standardized rebates for rewind work on 20 horsepower through 500 horsepower motors. Rebates for larger motors are customized based upon the incremental cost of the motor and the value of the electrical savings. 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 energy-efficient electric conservation measures in existing irrigation systems. Funding for the E+ Irrigator Program is provided through NorthWestern Energy electric default supply customers. 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 for energy-efficient lighting as well as air and ground source heat pumps, washing machines, and water heaters.
Smaller cooperatives in Montana, such as Lower Yellowstone Cooperative, McCone Electric Cooperative, Southeast Electric Cooperative, and others, offer various rebates to customers for installing energy-efficient equipment.
The Pacific Northwest's investor- and publicly-owned utilities, 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 nonprofit corporation. Federal customers should be aware of NEEA initiatives that could impact their facilities, such as commissioning of public buildings, building operator certification, efficient building practices, Lighting Design Lab, Northwest Energy Education Institute, Compressed Air Challenge, and Motor Drive Power.
What utility energy efficiency programs are available to me?
Black Hills Power 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 per ton for replacement heat pump installation (air source or water source) and $125 to $150 per ton for new heat pump installation depending on the type. Black Hills Power also offers incentive rates and grants for economic development.
Bonneville Power Administration (BPA) offers numerous energy conservation programs:
BPA provides funding for various energy efficiency activities to utilities in its service territory through a Conservation Rate Credit (CRC) and Energy Conservation Agreement (ECA). As of September 30, 2009, the ECA replaces the Conservation Acquisition Agreement (CAA).
BPA's Technical Services Proposal program offers customers the opportunity to submit a proposal for energy efficiency technical services in the agricultural, commercial, or industrial sectors. The project should be instrumental in the implementation of an energy efficiency project under one of BPA's conservation programs. A technical service proposal 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 at agricultural, commercial, or industrial facilities.
BPA's Commercial and Industrial Lighting is available through public utilities participating in the BPA program.
BPA's Energy Smart Design program offers incentives for new, small offices via participating BPA utilities.
BPA offers energy efficiency retrofits to Federal agencies under its Federal Conservation Acquisition Program. In 2009, program funding was renewed through September 2011. Under this program, BPA identifies and implements energy-saving measures at Federal facilities. Federal facilities located in load following areas, areas that are served 100% with BPA power, receive all design, engineering support, and contracting services free of charge as well as financial incentives. In addition, a financing option is available to help Federal agencies meet cost-sharing requirements. Projects at sites served by utilities procuring only a portion of their power from BPA may still take advantage of services but must reimburse BPA for its costs. Interested Federal agencies can contact Frank Brown at febrown@bpa.gov or 206-220-6774 for more information.
What load management/demand response options are available to me?
BPA is assessing a variety of load management/demand response programs and conducting pilot programs in partnership with local distribution utilities.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs in Montana that offer incentives for renewable distributed generation. The following programs may of interest to Federal customers:
Using revenues generated from the sales of Green Tags (renewable energy credits), the Bonneville Environmental Foundation, a not-for-profit organization, accepts proposals for funding for renewable energy projects located in the Pacific Northwest. Any facility located in the Pacific Northwest (including Montana) may participate.
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 offers the Alternative Energy Revolving Loan Program, which makes loans of up to $40,000 (subject to available funds) 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.
Incentives for solar, wind, or geothermal projects may be 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.
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 the Planning, Prevention, and Assistance Division of the Department of Environmental Quality.
What additional opportunities are available to me?
Pacific Northwest investor- and publicly-owned utilities, as well as public representatives, have banded together to offer energy efficiency market transformation initiatives under the auspices of the Northwest Energy Efficiency Alliance (NEEA), a nonprofit organization. Federal customers should be aware of NEEA initiatives that could benefit their facilities, such as commissioning of public buildings, building operator certification, efficient building practices, Lighting Design Lab, Northwest Energy Education Institute, Compressed Air Challenge, and Motor Drive Power.
Federal customers whose utilities have area-wide contracts through the General Services Administration (GSA) (e.g., Montana-Dakota Utilities) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.