Governor Markell announces recipients of DNREC grants totaling more than $1 million for alternative fuel infrastructure projects

DOVER – Today, the Delaware Clean Cities Coalition, in conjunction with DNREC’s Division of Energy & Climate, hosted a capacity attendance of more than 170 transportation professionals from across Delaware and neighboring states at Fueling the Future: Clean Transportation for a Greener Delaware at Dover Downs Hotel and Casino.

Presentations, panel discussions, vendors and an interactive Ride-and-Drive explored the economic and environmental benefits of fueling vehicles with propane, natural gas, and electricity in place of gasoline. Experts also discussed funding opportunities to grow alternative fuel infrastructure in Delaware.

Governor Jack Markell joined DNREC Secretary David Small to announce the recipients of the Alternative Fuel Infrastructure Grants, which will fund seven projects to help grow alternative fuel infrastructure across the state. The grants are part of Delaware’s Clean Transportation Incentive Program, funded through Delaware’s participation in the Regional Greenhouse Gas Initiative cap-and-trade program. Totaling more than $1 million, the grants announced today range from $8,000 to $500,000, depending on the scope and technology needs of each project.

The grant recipients are:

• Chesapeake Utilities – $500,000, for a public CNG fast-fill refueling station at their new headquarters in Dover.
• The Delaware Division of Parks & Recreation – $55,962, to install two D.C. Fast Charging Stations at Blue Ball Barn in Wilmington and Indian River Marina.
• Royal Farms – $349,902, to install 10 D.C. Fast Charging Stations at five Delaware stores in Smyrna, Dover, Milford, Georgetown and Laurel.
• The University of Delaware – $8,846, to install three Level 3 Charging Stations on the University of Delaware Campus, including one public charging station.
• Sharp Energy – $86,375, to install propane fueling stations at three Delaware school yards in Red Clay, Sutton Bus and School Mule.

“Delaware has been a leader in reducing emissions while still remaining dedicated to economic growth as well as promoting the health of our residents and our environment,” said Governor Markell. “Through our participation in the Regional Greenhouse Gas Initiative and the Delaware Clean Transportation Incentive Program, we’ve been able to secure funding that helps us reduce our environmental footprint and combat climate change by promoting the use of alternative fuels and supporting alternative fuel infrastructure throughout the state.”

“Today’s conference was an opportunity to bring together a diverse group which can learn from each other about our challenges and economically beneficial solutions for reducing environmental impacts from transportation,” said DNREC Secretary Small. “Promoting and supporting the use of vehicles powered by cleaner alternative fuels such as electricity, propane and natural gas plays a vital role in our mission to grow Delaware’s clean energy economy, reduce transportation’s environmental footprint and fight the long-term effects of climate change in our state.”

Fueling the Future participants also had the opportunity to get behind the wheel of alternative fuel cars and ride in alternative fuel commercial vehicles, including propane and natural gas school buses, trucks, emergency vehicles and vans, as well as passenger electric vehicles such as DNREC’s new fleet Ford Focus Electric.

“When it comes to contributing to climate preparation and resiliency, the importance of using alternative fuels cannot be overstated,” said Clean Transportation Policy Analyst Kathy Harris, Division of Energy & Climate. “Delaware’s growing alternative fuel network offers progressive opportunities for improving air quality and reducing greenhouse gas emissions threatening our state. We invite Delaware’s transportation professionals who could not be with us today to contact us to learn more about possible grants and rebates to help them take positive action for our environment.”

For more information on clean transportation initiatives, rebates and funding opportunities offered through the Division of Energy & Climate, please visit Delaware Clean Transportation Incentive Program, or call DNREC’s Division of Energy and Climate at 302-735-3480.

Delaware’s Clean Transportation Incentive Program (CTIP) includes two competitive grant programs that provide financial incentives for the development of alternative fueling infrastructure and promote innovative transportation projects that decrease greenhouse gas emissions in Delaware. It also includes three rebate programs for purchasing passenger vehicles, tractor trailer trucks and electric vehicle charging equipment. All rebates and grants are open to Delaware residents, businesses, non-profits, fleets and state, county and municipal governments for vehicles titled and registered in Delaware. CTIP is funded by Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI), a market-based cap-and-trade program designed to reduce carbon dioxide and greenhouse gas emissions from the electricity generation sector. Delaware’s proceeds from RGGI are invested in energy efficiency and renewable energy programs, designed to reduce greenhouse gas emissions. Proceeds also support consumer benefit programs that spur innovation in a clean energy economy and create green jobs. Administered through DNREC’s Division of Energy & Climate, CTIP supports Governor Markell’s goals of creating a clean energy economy, ensuring cleaner air and reducing greenhouse gas emissions that contribute to climate change. For more information, visit de.gov/cleantransportation.

The Delaware Clean Cities Coalition, sponsored by the U.S. Department of Energy’s Vehicle Technologies Program, is housed within the Delaware Division of Energy & Climate, and comprises more than 40 stakeholders from state and local governments, fuel suppliers, vehicle retailers, fleet owners, non-profit organizations and other interested parties.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 185

DOVER – DNREC’s Division of Energy & Climate invites fleet managers, businesses, public organizations and transportation professionals to attend Fueling the Future: Clean Transportation for a Greener Delaware, presented in conjunction with the Delaware Clean Cities Coalition from 9 a.m. to 3:30 p.m. Tuesday, May 24, at Dover Downs Hotel and Casino, 1131 North DuPont Highway, Dover, DE 19901. To register for the event, or for more information, visit de.gov/fuelingthefuture. Registration is open through Wednesday, May 11.

“Delawareans have demonstrated a growing interest in driving propane, natural gas and electric vehicles, and the accessibility to these alternative fuels is expanding,” said DNREC Secretary David Small. “This event is a great opportunity to learn what vehicles are available and the benefits of choosing them – an alternative fuel vehicle is an investment in a cleaner future and will help reduce greenhouse gas emissions and other negative impacts to air quality.”

At this one-day interactive event, attendees will explore the benefits of cleaner alternative fuels for transportation, including propane auto gas, natural gas and electricity. Fueling the Future will feature the announcement of recipients of the Alternative Fueling Infrastructure Grants by Governor Jack Markell, informative presentations and panel discussions, displays from 11 vendors and a raffle to win an electric vehicle charging station. Fueling the Future participants also will have the opportunity to get behind the wheel of alternative-fueled cars and ride in alternative-fueled commercial vehicles. Vehicles on display will include: propane and natural gas school buses, trucks, emergency vehicles and vans, as well as passenger electric vehicles such as the BMW i3 and the Nissan Leaf.

Expert panelists and vendors will showcase options for transitioning fleets to alternative fuels; present funding opportunities and success stories, and dispel common misconceptions about clean transportation. Alternative-fueled vehicles are available in almost every vehicle class, from passenger sedans and pickup trucks to school buses and heavy-duty trucks, making them ideal for virtually any fleet.

“The costs of fueling a fleet and the carbon footprint of traditional gas and diesel vehicles can be substantial,” said Clean Transportation Policy Analyst Kathy Harris, Division of Energy & Climate. “The transportation sector in Delaware accounts for about 34 percent of the state’s greenhouse gas emissions. Cleaner alternative fuels enable fleet managers to improve environmental stewardship while offering more consistent and often lower fuel costs than conventional fuels.”

“When it comes to climate preparation and resiliency, the importance of using alternative fuels cannot be overstated,” Harris continued, noting the importance of programs such as the Alternative Fueling Infrastructure Grant Program to support projects that reduce harmful climate change-inducing emissions in Delaware through alternative fuel infrastructure development. “Delaware’s growing alternative fuel network offers progressive opportunities for improving air quality and reducing greenhouse gas emissions threatening our state. We invite Delaware’s transportation professionals to be part of this environmentally-responsible movement.”

Fueling the Future is hosted by the Delaware Clean Cities Coalition, sponsored by the U.S. Department of Energy’s Vehicle Technologies Program. The coalition is housed within the Delaware Division of Energy & Climate, and comprises more than 40 stakeholders from state and local governments, fuel suppliers, vehicle retailers, fleet owners, non-profit organizations and other interested parties.

For more information on clean transportation initiatives, rebates and funding opportunities offered through the Division of Energy & Climate, visit de.gov/cleantransportation.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 163

DOVER – Over the past three years, the number of Delaware homeowners installing solar panels through a lease or power purchase agreement (PPA) has increased significantly. These are popular financing options for homeowners who are interested in installing clean energy solar panels without paying significant upfront costs or claiming ownership of the system.

In both a solar lease and PPA agreement, the solar installer usually pays to install and maintain the system, and has ownership of the system equipment. In return, the homeowner pays for use of the system in one of two ways: a monthly lease payment, or a power purchase agreement (PPA) in which the homeowner pays a specific rate for the electricity that is generated each month.

In 2015, more than 70 percent of residential solar projects installed in Delaware used solar lease or PPA agreements. With the rapid expansion of these types of projects in Delaware, DNREC’s Division of Energy & Climate has developed the following guidance for homeowners to consider prior to signing a lease or PPA contract.

Thoroughly familiarize yourself with terms of the contract. Most contracts are for a 20-year period, so don’t sign anything until you understand and are comfortable with all of the terms and conditions. Make sure the contract is not missing something that you expected or that the solar company discussed with you – get all terms and agreements in writing. Get a second opinion on any elements of the contract with which you aren’t comfortable.

Understand the system maintenance requirements and your responsibilities during the contract period. Clarify whether maintenance costs will fall on you, or will be the responsibility of the company.

Understand the full cost of your lease or PPA over the life of the contract, including fees or price increases that may occur during the contract period and annual escalators. Lease contracts should clearly list the monthly payment that will be due each month during your contract. A PPA agreement should include the rate per kilowatt hour (kWh) for your entire contract. Many contracts include an annual escalator which increases your monthly payment or price per kWh by a set percent each year of the contract. If the annual escalator is set at a rate that increases faster than the price of electricity from your power company, the power from your solar panels could become more expensive than traditional electricity during your contract period.

Know the current price per kWh that you pay for electricity. You can gather this information by looking at your energy bill or by contacting your electricity provider.

Make sure your proposed solar contract and estimated savings are calculated using your actual cost of electricity, and not a statewide average or estimated electric rate. Electric rates vary significantly by utility company in Delaware. Be wary of high annual electric cost increase estimates that may be used in contracts to make the lease or PPA agreement seem more attractive.

Ask your prospective contractor to explain what incentives they will be claiming and how these incentives were factored into the proposed lease or PPA cost. Consider all of the tax credits, state grants and other incentives available for solar installations. Under most lease and PPA contracts, these incentives are awarded to the solar company, not the homeowner. Currently, available incentives for solar include:

• Federal tax credit – currently 30 percent of project costs
• State grants – vary by electric company. See de.gov/greenenergy to confirm what is available for your project.
• Solar Renewable Energy Credits (SRECs) – These credits can be sold at SREC procurement auctions or exchanged for an upfront rebate via the Sustainable Energy Utility’s SREC Purchase Program. One SREC is generated by your system for every 1,000 kWh hours it produces. See srectrade.com or www.greengrantdelaware.com for more information about these options.

Shop around – get quotes from two or three Delaware solar installers and compare costs before committing.

Consider the pros and cons of owning a system versus leasing or entering into a PPA. While owning a system requires upfront investment, the system will likely pay for itself in a matter of years. Currently, customer-owned residential solar projects in Delaware have an average payback period of only seven years. Homeowners who own their solar system only pay for the difference of the energy they use and the energy they produce, meaning the homeowner will pay significantly less for each energy bill, and may even gather credits to cover other months if their system produces more than the home needs. Over time, the homeowner will save more money in energy costs than they spent on purchasing and installing the system. Most solar panels have a standard 20-year manufacturer’s warranty.

Evaluate whether your finances, coupled with current tax credits and incentives, could make purchasing a system a more attractive option. Low-interest loans may also be available for renewable energy projects, including solar, which could enable you to pay for a system without a lease or PPA contract.

The Delaware Green Energy Program maintains a list of solar installers that offer both customer-owned and lease/PPA systems. Visit de.gov/greenenergy for more information.

Ask the solar company about any liens or fixture filings that may be placed on your home when you sign a solar lease or PPA contract. These may create unanticipated barriers to refinancing your home, taking out a home equity loan or even selling your house. Make sure any liens or fixture filings are fully described in your contract and you understand and are comfortable with all of the implications.

Understand and be sure you’re comfortable with the contract terms that may impact your ability to sell your home during the contract period. Many contracts require the buyer of your home to agree to take over your remaining lease payments or PPA contract terms and also meet certain credit requirements. If a buyer does not agree to transfer the lease or PPA into their name or does not meet the solar company’s credit requirements, you may be required to pre-pay the remaining cost of the contract prior to selling your home.

Consider how a solar system may impact roof repairs or replacement – lease and PPA contracts usually include charges for removing and re-installing the solar panels. Additionally, most lease agreements require you to continue making regular lease payments while the roof is being repaired, even if your solar panels will not produce electricity during this time. Consider making roof repairs prior to installing solar panels.

Be wary of high pressure sales tactics and attempts to pressure you into signing a contract before you fully consider all of your options and are able to finish “doing your homework.”

Ask what companies, if any, the solar contractor will be subcontracting with during the installation of your panels. Ask for business license numbers and professional license information for the electricians who will be working on your installation. Make sure your contracting company and any subcontractors have positive ratings on the Better Business Bureau website.

A solar energy system is a great investment that will lower your carbon footprint and environmental impact, and can save you a lot of money on your monthly energy bill. Lease or power purchase agreements can be beneficial for homeowners who want to contribute to clean energy growth, but may not have the upfront capital, while purchasing a system allows a homeowner to enjoy the benefits and cost savings of solar power without a middleman. Whether you decide to lease or purchase a system, well-informed research will help you make the right decision for your situation.

Solar Energy in Delaware
Solar energy capacity in Delaware has increased by about 3,000 percent since 2008, from 2.3 MW capacity to 71.8 MW capacity. Solar farms across the state power homes, schools and businesses without producing the pollutants generated from fossil fuels that threaten our public health, air quality and vibrant natural resources. Renewable energy systems including solar energy allow Delawareans to achieve the quality of life they desire while reducing greenhouse gas emissions and protecting our environment. For more information on renewable energy in Delaware, visit de.gov/greenenergy.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 155

DOVER – DNREC, in conjunction with Delaware’s Energy Efficiency Advisory Council, invites stakeholders to attend an upcoming workshop to give comments on proposed new regulations for the evaluation, measurement and verification (EM&V) of energy efficiency projects. Two workshop dates are scheduled:

• 6 p.m., Tuesday, May 3, DNREC Auditorium, Richardson & Robbins Building, 89 Kings Highway, Dover, DE 19901
• 6 p.m., Tuesday, May 10, DNREC Division of Waste & Hazardous Substances New Castle office, Conference Room A, 391 Lukens Drive, New Castle, DE 19720

The Energy Efficiency Advisory Council (EEAC) was established to create and implement programs for consumers that encourage energy efficiency and wise energy use practices across the state. As utilities make their plans for providing energy-efficiency solutions, DNREC is developing a set of regulations that will outline methods for evaluating projects and measuring their effectiveness, known as EM&V regulations.

The Council has set an ambitious goal for energy-use reduction in the state, aiming for a 2.1 percent reduction of Delaware’s total energy use over three years.

The public is encouraged to attend the workshops to learn more about the regulations, ask questions and provide input.

Interested parties may obtain a copy of the draft regulations online at EM&V Regulations or by emailing Emily.StClair@delaware.gov. To submit written comments regarding the proposed regulations, email Emily St. Clair or send comments to:

ATTN: Emily St. Clair
Division of Energy & Climate
100 West Water Street, Suite 5A
Dover, DE 19904

Questions also may be directed to Emily St. Clair by email or phone at 302-735- 3366.

About the Energy Efficiency Advisory Council
The Energy Efficiency Advisory Council is comprised of representatives from DNREC, energy providers, large and small businesses, manufacturers, low-income and residential populations, the Sustainable Energy Utility and other interested parties affected by energy efficiency standards, including environmentalists and agriculturalists. The Council also collaborates with the Public Service Commission and the Public Advocate. Together, the council members work to reach Delaware’s energy efficiency goals while ensuring that all energy efficiency and reduction programs are cost-effective.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 152

Delawareans choose electric vehicles, save 830,000 pounds CO₂ per year

DOVER – The success of DNREC’s Clean Transportation Incentive Program and high public demand for participation in it led the Division of Energy & Climate to announce today that an additional 100 rebates are being offered for electric and plug-in hybrid electric vehicles purchased or leased in Delaware.

Launched in July 2015, the Clean Transportation Incentive Program has exceeded its goal of 100 vehicle rebate applications from Delaware drivers of electric and plug-in hybrid electric vehicles. In light of the program’s high demand, 100 more rebates at $2,200 each are now available.

“The vehicles that have been purchased through the rebate program so far represent a savings of 830,000 pounds of carbon dioxide per year that would have been emitted into our atmosphere if these drivers had chosen traditional gasoline cars,” said Climate Section Administrator Susan Love, Division of Energy & Climate.

Plug-in hybrid electric vehicles, which have a back-up gasoline engine, and battery electric vehicles, which run solely on electricity, have more reliable and typically lower fuel costs compared to gasoline. In addition, battery-electric vehicles produce no tailpipe pollution, leading to cleaner air and a lower carbon footprint.

“Transportation accounts for roughly a third of greenhouse gas emissions in the state. Delawareans are embracing electric, plug-in hybrid electric and alternative fuel vehicles as a cleaner, cost-effective way to get around,” Love said. “That means a lot for our public health, our natural resources and our efforts to mitigate climate change.”

Rebate-eligible electric vehicles include the Nissan Leaf, Ford Focus Electric, Ford Fusion Energi, Chevy Volt, BMW i3, Tesla Model S and other options. Battery-electric vehicles such as the BMW i3, Chevy Spark and Nissan Leaf can drive about 80 miles on one charge, making them a viable option both for frequent local travel and some commutes.

Drivers in all three counties have applied for and received Delaware clean vehicle rebates, and dealerships across the state have partnered with DNREC to help inform and engage Delawareans. Partnering dealers are: AutoTeam Delaware, Wilmington; Diver Chevrolet, Wilmington; Sheridan Ford, Wilmington; Sheridan Nissan, New Castle; Bayshore Ford, New Castle; Porter Auto Group, Newark; Willis Chevrolet Buick, Smyrna; Willis Ford, Smyrna; and I.G. Burton, Milford.

Clean Transportation Grants and Rebates
In addition to vehicle rebates, the Delaware Clean Transportation Incentive Program also includes grant and rebate opportunities for projects that reduce greenhouse gas emissions in Delaware by promoting propane, electric and natural gas vehicles – collectively known as alternative fuel vehicles – and related infrastructure. Alternative fuel vehicles can meet the needs of drivers of all types of vehicles, from everyday four-door sedans and pick-up trucks to vans, dump trucks and heavy-duty tractor trailers.

In addition to state rebates and funding opportunities for vehicles and charging/fueling equipment, manufacturer rebates and federal funding opportunities and tax incentives also may be available.

For more information about funding available through Delaware’s Clean Transportation Incentive Program, visit de.gov/cleantransportation.

Fueling the Future Conference and Ride-and-Drive Event
Interested transportation professionals and state partners can learn about and experience alternative fuel vehicles firsthand at Fueling the Future: Clean Transportation for a Greener Delaware, a one-day conference and ride-and-drive event on Tuesday, May 24 at Dover Downs Hotel and Casino. Expert panels will discuss the mechanics and benefits of alternative fuel vehicles for businesses, fleets, shipping and other transportation needs. In the afternoon ride-and-drive component, attendees will have the opportunity to drive alternative fuel vehicles, and ride in alternative fuel commercial vehicles.

To register, visit de.gov/fuelingthefuture. Registration is open through Wednesday, May 11.

Delaware’s Clean Transportation Incentive Program is made possible through Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI). RGGI is a market-based emissions trading program designed to reduce emissions from the electricity generation sector. Delaware’s proceeds from RGGI are invested in energy efficiency, renewable energy, emissions reductions programs and programs that benefit energy consumers. In addition to providing funds, RGGI encourages innovation, growing a clean energy economy and creating green jobs.

Media Contact: Joanna Wilson, DNREC Public Affairs, 302-739-9902

Vol. 46, No. 140