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Home My WebLink About2006-189 Agreement - Conservation Acquisition Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 ENERGY EFFICffiNCY September 26, 2006 In reply refer to: PSW-6 Mr. Dick Wanderscheid Director of Electric Utilities City of Ashland 90 North Mountain Avenue Ashland, OR 97520 Dear Mr. Wanderscheid: Enclosed are two originals ofthe Conservation Acquisition Agreement No. 06ES-10738 and Exhibit A, Project 1, Commercial and Industrial Lighting Offer (C&ILO); Project 2, Commercial and Industrial Standard Offer (C&ISO); and Project 3, Residential Standard Offer (ResSO). The C&ILO has an implementation budget of $23,529; the C&ISO has an implementation budget of $50,000; and the ResSO has an implementation budget of $50,000. Please sign both originals, return one signed original to me and retain one for your files. If you have any questions, please feel free to contact Margaret Lewis, Energy Efficiency Representative, at (503) 230-7552 or Rita Gill, Public Utilities Specialist, at (503) 230-4958. You may also call me if you need additional information at (503) 230-3555. Sincerely, ~-r- Tina Ko Customer Account Executive 4 Enclosures: Conservation Acquisition Agreement No. 06ES-10738 Exhibit A, Project 1 Exhibit A, Project 2 Exhibit A, Project 3 cc: Ms. Cathy Cartmill, City of Ashland Contract No. 06ES-I0738 CONSERVATION ACQUISITION AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and CITY OF ASHLAND Table of Contents Section I. 2. 3. 4. 5. 6. 7. 8. 9. 10. II. 12. 13. 14. 15. 16. 17. 18. 19. 20. Term of Agreemen t........................................................................................ Defini tions .................................................................................................. .... Purchase of Energy- Savings........................................................................ Implementation Budget ............................................................................... Other Sources of Funding.............. .............................................................. Proj ect Implementation .... ....... ............................................... ....... .............. Reporting, Invoicing and Payment............................................................ Records and Audits ....................................................................................... BP A Oversight ............................... ......................... ............................. ....... .... Evaluations..................................................................................................... Proced-ures for Removal or Changes ......................................................... Suspension and Withholding Payment ..................................................... T erminati on ......................... ....... ............................ ......................... ............... Environmental Provisi ons .................................................. ......................... Standard Provisi ons ..................................................................................... Uncontrollable Force ...................... ............... ......................~........................ Liability...... ........ ........................... .................. ........ ....... ............. ..... ........ ....... Governing Law and Dispute Resolution................................................... Notices ........... ........................................................... ....................................... Sign.at-ures....................................................................................................... Exhibit A Projects, Energy- Savings, and Project Budgets, Page 2 2 4 4 5 5 5 6 8 8 8 9 10 11 12 13 14 15 16 17 This CONSERVATION ACQUISITION AGREEMENT (Agreement) is executed by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (BPA) and the CITY OF ASHLAND, OREGON (Ashland). Ashland is a municipal corporation organized under the laws of the State of Oregon, and may be referred to individually as "Party" or collectively as "Parties." RECITALS BPAis required by the Pacific Northwest Electric Power Planning and Conservation Act, Public Law 96-501 (Northwest Power Act), to meet the net firm power load requirements of its customers in the Pacific Northwest. BP A is authorized to acquire Conservation to reduce the firm power load requirements of its customers in the Pacific Northwest. BP A desires to purchase Conservation to achieve its share of the long-term regional Conservation targets as defined by the Northwest Power and Conservation Council's Fifth Power Plan. Ashland desires to install cost-effective Measures within its service area, producing a quantity of Energy Savings in exchange for an Implementation Budget from BPA. The Parties agree as follows: 1. TERM OF AGREEMENT (a) This Agreement becomes effective at 2400 hours on the date of execution by both Parties (Effective Date), and shall remain in effect until 2400 hours on September 30, 2009, unless terminated earlier as provided in section 13, Termination. Except as provided for in section 3(d), all liabilities shall remain until satisfied. (b) The Parties agree that on the Effective Date, this Agreement shall replace Purchase of Conservation (ConAug) Agreement No. 01ES-10379, that all Work in Progress shall be transferred to this Agreement and that no other invoices shall be paid by BPA for Completed Units delivered under ConAug Agreement No. 01ES-10379. 2. DEFINITIONS All capitalized terms used in this Agreement shall have the following meaning. (a) "Completed Unit" means a Unit that is properly installed, operating and, when applicable, commissioned in accordance with the manufacturer's requirements and specifications for normal operations and, as applicable, has satisfied or met any specification requirements set forth in Exhibit A. (b) "Conservation" means any reduction in electric energy consumption resulting from an increase in the efficiency of electric energy use, production or distribution. (c) "Consumer" means any end user of electric energy in Ashland's service area that contributes to Ashland's total retail load. (d) "Contracting Officer" means the person designated by BPA who has the authority to enter into, administer, modify, suspend, or terminate this 06ES-10738, Ashland 2 of 17 Agreement, and make related interpretations, determinations and findings thereof. (e) "Contracting Officer's Technical Representative" or "COTR" means the authorized representative of the Contracting Officer knowledgeable in the technical aspects of this Agreement designated in writing by the Contracting Officer. ({) "Energy Savings" means the ascribed, deemed, calculated, estimated, evaluated, or verified Conservation, in first year kilowatt-hours (kWh) attributable to Completed Units. (g) "Fiscal Year" means the consecutive twelve month period which begins every October 1 and ends on the following September 30, during the term of this Agreement. (h) "Implementation Budget" means the amount of money BPA shall make available to Ashland in each Project included in Exhibit A to expend on Implementation Costs during the Implementation Period. (i) "Implementation Costs" means the sum of all or part of the actual total costs to install or implement Measures that result in Completed Units. (j) "Implementation Period" means the period oftime from the Effective Date through, the earlier of 2400 hours on September 30, 2009 or 2400 hours on the end date of the term of a Project in Exhibit A, during which Completed Units are delivered. (k) "Measure(s)" means materials or equipment installed, or activities implemented, to achieve Conservation. (1) "Other Requirements" means any revision, restriction, or alteration, which BPA may impose on any Measure as a result of any directive or order of any court or regulatory agency of competent jurisdiction, or the result of a final record of decision of any process conducted by BPA pursuant to the National Environmental Policy Act. (m) "Project" means the total of all Units proposed and Completed Units installed under this Agreement associated with each discrete activity described in Exhibit A. (n) "Regional Technical Forum" or "RTF" means an organization composed of BP A customers, state agencies, public interest groups and BP A that has responsibility for developing the list of recommended cost-effective Measures. (0) "Standard Offer" means a BPA designed Project that describes eligible Measures, procedures, reimbursement amounts, and requirements for delivery of and payment for Energy Savings. 06ES-10738, Ashland 3of17 (p) "Unit" means any Measure or combination of Measures that achieve Conservation and are incorporated within a Project in Exhibit A. (q) "Work in Progress" means Units committed to by Ashland, the installation of which has not been completed making such Units a Completed Unit. (r) "Workday" means a day that both Parties recognize as a regular day of work. 3. PURCHASE OF ENERGY SAVINGS (a) BPA agrees to purchase and Ashland agrees to sell the Energy Savings from Completed Units from each Project incorporated into Exhibit A. (b) Ashland may at any time during the term of this Agreement request a Standard Offer or propose a non-standard Project for BPA's consideration for the purchase of additional Energy Savings. Non-standard Project proposals submitted shall include, but are not limited to, a description of the Measure(s), the Energy Savings, the Energy Savings verification methodology, the reimbursement amount, the installed cost, and the delivery approach. The request or proposal submitted should include other funding sources as required in section 5(a). BPA may request additional information related to the request for a Standard Offer or the non-standard Project proposal prior to making a purchase decision. If BP A decides to purchase Energy Savings from a Standard Offer requested or a non-standard Project proposed, BPA shall add the Standard Offer or non-standard Project to this Agreement by revising Exhibit A. BPA shall send the revised Exhibit A to Ashland. (c) BPA may at any time during the term of this Agreement send notice to Ashland that BP A will no longer accept requests for Standard Offers or non- standard Project proppsals or add to the Implementation Budgets for the purchase of additional Energy Savings. (d) Unless otherwise stated in Exhibit A, BPA shall not be obligated to pay for Energy Savings from Completed Units delivered after the Implementation Period. 4. IMPLEMENTATION BUDGET (a) On the Effective Date of this Agreement, or when a Project is added to Exhibit A, Ashland is authorized by BPA to incur Implementation Costs in an amount equal to the Implementation Budget for each Project in Exhibit A. (b) The Implementation Budget provided by BPA for each Project in Exhibit A, shall be available to Ashland for the term of that Project, except as provided in section 3(d); section 12, Suspension and Withholding Payment; and, section 13, Termination. 06ES-10738, Ashland 4 of 17 ., (c) Unless otherwise agreed to by BPA, BPA shall not be obligated to pay Implementation Costs in excess of the Implementation Budget for any Project in Exhibit A. (d) BPA may, but is under no obligation to, supplement the Implementation Budget of any Project in Exhibit A. . (e) Unless otherwise specified in this Agreement, Ashland shall return to BPA the balance of any Implementation Budget remaining upon conclusion of the Implementation Period for each Project in Exhibit A. 5. OTHER SOURCES OF FUNDING (a) For any request or proposal submitted pursuant to section 3(b), Ashland shall list all sources of funding for Projects and Measures other than those funds being requested from BP A for the Measures described in the proposal. BP A and Ashland may then agree to the allocation of costs among the various funding sources. (b) BP A will not pay for any portion of the cost of a Project under this Agreement that has been or would be paid or given credit for under any other BPA or Federal contract or financial assistance agreement. No Project or Measure claimed under BPA's Conservation and Renewables Discount, or its successor, shall be eligible for payment under this Agreement. 6. PROJECT IMPLEMENTATION (a) Ashland shall: (1) implement the Project(s) as described in the Agreement; (2) deliver Completed Units within the Implementation Period; (3) install those Measures identified in Exhibit A in accordance with any specifications required for those Measures; and (4) implement this Agreement in accordance with all applicable law. (b) Ashland may subcontract to provide Completed Units under this Agreement. If Ashland does create such an arrangement, Asl)land shall, by contract, require that the entity comply with the terms and conditions of section 6(a); section 8, Records and Audits; section 9, BPA Oversight; section 10, Evaluations; section 12, Suspension and Withholding Payment; section 13, Termination; and section 17(0. 7. REPORTING, INVOICING AND PAYMENT (a) Unless otherwise specified by a Project in Exhibit A, Ashland shall submit reports to BP A using the RTF reporting system. The report submitted shall 06ES-10738, Ashland 5 of 17 be the invoice from Ashland to BPA and shall only include information on Completed Units installed during the Implementation Period. Ashland shall retain all supporting documentation for each Completed Unit included in each report submitted for reimbursement. Documentation retained by Ashland for each Completed Unit included in each report submitted shall be labeled with the unique identifying number of the report submitted for reimbursement. (b) Unless otherwise specified by a Project in Exhibit A, the frequency of reports or invoices submitted shall either be: (1) no more often than monthly for Projects with multiple Units expected to be delivered throughout the term of this Agreement; or (2) a single invoice when a custom sub-Project is completed. (c) If specified by a Project in Exhibit A, invoices submitted to BPA not using the RTF reporting system shall be transmitted to BPA at the following address: Bonneville Power Administration P.O. Box 3621 Portland, OR 97208 Attn: Rita Gill Phone: 503-230-4958 Fax: 503-230-5147 Email: nmgill@bpa.gov (d) Unless otherwise specified by a Project in Exhibit A, BPA's total administrative allowance payments shall not exceed the lesser of 15% of the Implementation Budget or the actual total administrative costs incurred during the Implementation Period by Ashland attributable to the implementation of this Agreement. (e) BPA shall pay reimbursements by electronic transfer of funds from BPA to Ashland's bank account. Payment by BPA shall be made on or before the close of business on the 30th day following the date of receipt and acceptance of a proper report or invoice by BPA's COTR. Should the 30th day be a day other than a Workday, the payment shall be due on the next Workday. (f) Should there be a disagreement in the report or invoice amount, BP A and Ashland agree to work together to correct errors to the report or invoice submitted and any revisions shall be included on the revised report or invoice. The Parties shall make reasonable efforts to make adjustments as soon as possible after BPA's receipt of the report or invoice. 8. RECORDS AND AUDITS (a) Ashland shall establish files and maintain supporting documents and records for each Project. The files for all Projects implemented under this Agreement 06ES-10738, Ashland 6 of 17 "T shall be clearly designated as being Conservation Acquisition Projects. The records for each Project, Unit, or Completed Unit as appropriate shall include, but is not limited to: (1) the name, address, and telephone number of the Consumer where the Completed Unit was installed; (2) a description of the Completed Unit(s) that includes the unique identifying RTF system report number or invoice number; (3) the Energy Savings for the Completed Unit(s); (4) the units (square feet, gallons, kWhs, etc), efficiency ratings (HSPF, MEF, etc) or performance tested data for the Completed Units; (5) Ashland designed forms associated with Completed Units; (6) vendor invoices associated with Completed Units; (7) information detailing locations of installed Completed Units; (8) energy audits; (9) warranties; (10) state certifications for Energy Star homes; (11) certifications for Performance Tested Comfort System heat pumps and ducts sealing; (12) custom sub-Project proposals and completion reports; (13) Measure installation costs (including but not limited to equipment costs, architecture and engineering costs, labor, and other direct and indirect costs); and (14) invoices and reports. (b) If Ashland participates in any of BPA's other Conservation initiatives, Ashland shall maintain records sufficient to demonstrate the source of BP A payment or credit given each Project, Measure or Completed Unit as appropriate. (c) Ashland shall maintain files of the actual total administrative costs incurred during the Implementation Period by Ashland attributable to the implementation of this Agreement. (d) Ashland shall keep program and Project records specified in sections 8(a), 8(b) and 8(c) for no less than three years after the term of this Agreement. 06ES-10738, Ashland 7 of 17 (e) Financial audits shall be in compliance with the audit standards established by the Comptroller General of the United States. 9. BPA OVERSIGHT (a) BPA or BPA's agent shall have the right to conduct inspections of Units or Completed Units and monitor or review Ashland's procedures, records, verified Energy Savings methods and results, or otherwise oversee Ashland's implementation of this Agreement. The number, timing, and extent of such inspections shall be at the discretion of BP A. Such inspections shall occur at BPA's expense. BPA may contact appropriate Federal, State, or local jurisdictions regarding environmental, health, or safety matters related to Units or Completed Units. (b) Prior to any physical inspection pursuant to section 9(a), BPA shall give Ashland written notice. Upon receipt of notice, Ashland shall have 30 days to arrange for the inspection of Units or Completed Units, or review of energy audit or Measure installation procedures, technical documents, records, or verified savings methods and results. 10. EVALUATIONS (a) BPA may conduct, and Ashland shall cooperate in, Conservation impact and Project implementation process evaluations to assess the amount, cost- effectiveness, and reliability of Conservation in BPA's or Ashland's service area. BPA shall select the timing, frequency, and type of such evaluations. (b) BPA will set the specific requirements for evaluations with consideration for the schedules and reasonable needs of Ashland and Ashland's Consumers. (c) Any evaluation initiated by BPA shall be conducted at BPA's expense and such costs shall be excluded from the Implementation Budget. 11. PROCEDURES FOR REMOVAL OR CHANGES (a) BPA shall remove or change any Project, Measure or Unit or make revisions to a Project, Measure or Unit when necessitated by Other Requirements. When such changes are necessitated by Other Requirements, BPA shall revise Exhibit A and send the revised Exhibit A to Ashland. (b) BPA may provide notices that establish procedures, change requirements, or make changes to Projects, Units or Measures installed in accordance with this Agreement. When the Parties agree in writing to such changes, BPA shall amend the Agreement and send the amended Agreement to Ashland. 06ES-10738, Ashland 8 of 17 I 12. SUSPENSION AND WITImOLDING PAYMENT (a) BPA and Ashland agree to an immediate suspension of any Measure either Party determines after a reasonable investigation presents a significant environmental, health, or safety threat to Consumers. BP A shall withhold further payment of Implementation Costs for the Measure(s) during the suspension period. Ashland shall remedy or take actions agreed to by the Parties to correct the environmental, health or safety threat to Consumers. Ashland shall have sixty days, or another number of days as agreed to in writing by BPA, to remedy or complete the corrective actions and notify BPA the remedy or corrective actions have been completed. BP A shall review the remedy or actions taken and determine if the suspension can be lifted. If the suspension is lifted by BP A, Ashland may begin installation of the Measure(s), with any changes required by BPA for the Measure(s), after BPA provides written notice accepting that Ashland has remedied or corrected the environmental, health or safety threat to Consumers. (b) IfBPA determines that Ashland's implementation of this Agreement is not in compliance with the environmental, technical, or record-keeping requirements of this Agreement, BPA shall provide a written notice to Ashland suspending implementation of all or specific Projects in this Agreement and identify the specific nature of the noncompliance. BPA shall withhold further payment of Implementation Costs for the Agreement or such Project(s) during the suspension period. (c) Upon receipt of the notice specified in section 12(b), Ashland shall have thirty days, or another number of days as agreed to in writing by BPA, to correct the noncompliance identified and notify BPA the corrective actions have been completed. BPA shall review the corrective actions taken and determine if the suspension can be lifted. If the suspension is lifted by BP A, Ashland may begin implementation of the Agreement or Project(s), with any changes required by BPA for the Agreement or Project(s), after BPA provides written notice accepting the corrective actions completed by Ashland. (d) If Ashland has not completed the remedy or corrective actions required in sections 12(a) or 12(c), then BPA may terminate this Agreement in accordance with section 13, Termination. (e) Mter a suspension imposed under sections 12(a) or 12(b) has been lifted by BPA, BPA shall pay for Energy Savings from Completed Units including Energy Savings from Measures accepted by BP A as having been corrected during the suspension period. BPA's payment shall not include and BPA shall not be liable for any environmental, health, or safety costs incurred due to noncompliance with all applicable law and regulations. BPA shall also not pay any cost associated with bringing any Project, Measure or Unit into compliance with the environmental, technical or record-keeping requirements of this Agreement. Ashland shall bear the costs of compliance. 06ES-10738, Ashland 9of17 ._, . 13. TERMINATION (a) Either Party may terminate this Agreement upon thirty days written notice. Ashland shall have one year from the effective date of termination pursuant to this section to complete Work in Progress, except as provided in section 3(d). (b) BPA may terminate this Agreement if Ashland has failed to comply with: (1) the environmental, technical, or record-keeping requirements; or (2) for cause upon Ashland's failure to comply with this Agreement, including use of any portion of the Implementation Budget in a manner inconsistent with this Agreement. (c) BPA may terminate this Agreement if Ashland: (1) gives notice to BPA that it will stop placing fIrm load on BPA pursuant to its existing fIrm power sales contract, or its successor, with BPA for the sale of power and energy to meet all or a portion of Ashland's fIrm electrical energy load or electric peaking requirements for a period of at least one year; (2) gives notice to BPA of its intent to terminate, or terminates, such existing or successor fIrm power sales contract with BPA; or (3) if Ashland becomes insolvent, fIles a petition for bankruptcy or reorganization, or assigns substantially all assets to creditors and consequently BPA no longer serves Ashland's loads. (d) No Work in Progress completion period beyond the effective date of termination shall be available to Ashland for a termination under sections 13(b) and 13(c). (e) If this Agreement is terminated in accordance with section 13(c) Ashland shall be liable for all payments for Work in Progress to Consumers and shall pay a reimbursement charge to BP A. The reimbursement charge shall be calculated by BP A using the following formula: R = P*(T-A) + T Where: R= Reimbursement to BP A; P= Total BP A payments to Ashland for Implementation Costs to the termination date of this Agreement; 06ES-10738, Ashland 10 of 17 -, A = Sum of the Energy Savings from all Completed Units for the full Measure life from the date of BPA's payment; and T = Sum ofthe Energy Savings from all Completed Units from the date of termination of this Agreement through the remaining life of the Completed Units. The following conditions apply to the reimbursement charge. (1) Energy Savings will be consistent with the Measure life in Exhibit A. (2) BPA shall present an invoice to Ashland for payment calculated pursuant to section 13(e). (3) Ashland may reimburse BPA by either: (A) making a lump sum payment within 30 calendar days of the date of BPA's invoice; or (B) making no more than 3 consecutive equal monthly payments, with the first payment and each succeeding payment due within 30 days of the date of BPA's invoice. (4) If reimbursement is accomplished by installments, interest shall be charged at the Prime rate (as listed in the Money Rates section of the Wall Street Journal) on the date of BPA's notice of termination under sections 13(b) or 13(c). Interest shall be calculated for the period of time between the date of the first payment made by BP A to Ashland and the date of the last reimbursement payment made by Ashland to BP A for which reimbursement to BP A is being made in accordance with this section. 14. ENVIRONMENTAL PROVISIONS (a) BPA, in the performance of this Agreement, shall comply with all of its obligations pursuant to the National Environmental Policy Act. (b) The Parties agree to: (1) comply fully with all applicable environmental laws and regulations; (2) assist and cooperate with each other in meeting each other's environmental obligations, to the fullest extent economically and technically practical and mutually agreeable; and (3) provide, upon request of the other Party, a copy of the pollution abatement plans as required by the Clean Air Act, by the Clean Water Act, by other federal statutes, or by an agency having jurisdiction and 06ES-10738, Ashland 11 of 17 within a reasonable time submit evidence that such plans have been approved or have not been objected to by agencies with jurisdiction. 15. STANDARD PROVISIONS (a) Unless otherwise specified in this Agreement, no oral or written amendment, rescission, waiver, modification, or other change of this Agreement shall be of any force or effect unless set forth in a written instrument signed by authorized representatives of each Party. (b) BPA's Contracting Officer may issue interpretations, determinations, and findings related to this Agreement that are binding on the Parties. Such decisions shall be provided to Ashland in writing. In administering this Agreement, only the written statements of BP A officials acting within the scope of their authority shall be considered to be official BPA statements. (c) This Agreement is binding on any successors and assigns ofthe Parties. BPA may assign this Agreement to another Federal agency to which BPA's statutory duties have been transferred. Neither Party may otherwise transfer or assign this Agreement, in whole or in part, without the other Party's written consent. Such consent shall not be unreasonably withheld. BPA shall consider any request for assignment consistent with applicable BP A statutes. (d) The Parties shall provide each other with any information that is reasonably required, and requested by either Party in writing, to operate under and administer this Agreement. Such information shall be provided in a timely manner. If such information is subject to a privilege of confidentiality, a confidentiality agreement or statutory restriction under state or Federal law on its disclosure by a Party to this Agreement, then that Party shall endeavor to obtain whatever consents, releases, or agreements are necessary from the person holding the privilege to provide such information while asserting the confidentiality over the information. Information provided to BPA which is subject to a privilege of confidentiality or nondisclosure shall be clearly marked on each appropriate page as such and BP A shall not disclose such information without obtaining the consent of the person or Party asserting the privilege, consistent with BPA's obligation under the Freedom of Information Act. The Consumer's company name, estimated and actual Energy Savings, and estimated and actual Implementation Costs for Units and Completed Units shall not be designated as proprietary information. (e) This Agreement, including the exhibit incorporated as part of this Agreement, and documents incorporated by reference, constitutes the entire agreement between the Parties. This Agreement supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Agreement. (f) The exhibit listed in the table of contents is incorporated into this Agreement by reference. Unless otherwise specified in this Agreement, the exhibit may 06ES-10738, Ashland 12 of 17 . "~ ~ .1" - .," - only be revised upon mutual agreement between the Parties. The Parties recognize each Project identified in Exhibit A as being a discrete Project. As such, each Project may be revised independently from other Projects described in Exhibit A. These revised Projects and any new Projects agreed to by the Parties shall be incorporated into Exhibit A of this Agreement by reference. In the event of conflict the body of this Agreement shall prevail over the exhibit of this Agreement. (g) The Parties agree that there are no unspecified third party beneficiaries of this Agreement. Nothing contained in this Agreement is intended to confer any right or interest to anyone other than the Parties, their respective legal representative, assigns or successors. (h) Except as otherwise provided in this Agreement or as agreed to by the Parties, no provision of this Agreement may be waived except as confirmed in writing. Any waiver at any time by a Party of its rights with respect to a default under this Agreement, or any other matter arising in connection therewith, shall not be deemed a waiver with respect to any subsequent default or matter. Either Party may waive any notice or agree to accept a shorter notice that is specified in the Agreement. Such waiver of notice or acceptance of shorter notice by a Party shall not be considered a waiver with respect to any subsequent notice required under this Agreement. (i) If any term of this Agreement is found to be invalid by a court of competent jurisdiction then such term shall remain in force to the maximum extent permitted by law. All other terms shall remain in force unless that term is determined not to be severable from all other provisions of this Agreement by such court. 16. UNCONTROLLABLE FORCE (a) Any obligation of a Party to perform under this Agreement, except an obligation to pay amounts due under. this Agreement, shall be excused when such failure to perform is due to an Uncontrollable Force. In the event that either Party is unable to perform due to an Uncontrollable Force, such Party shall exercise due diligence to remove such inability with reasonable dispatch. Nothing in this section shall be construed to require either Party to settle any strike or labor dispute in which it may be involved. (b) Each Party shall notify the other in writing as soon as practicable of any Uncontrollable Force that may impair performance under this Agreement. Failure to give such notice within a reasonable period shall be deemed a waiver of such Uncontrollable Force. (c) Uncontrollable Force is an act or event beyond the reasonable control of a Party, and which by exercise of due diligence and foresight such Party could not reasonably have been expected to avoid or remove, which impairs the ability ofthe Party to perform and, includes, but is not limited to, failure of or threat of failure of facilities, flood, earthquake, storm, accident, fire, 06ES-10738, Ashland 13 of 17 T lightning, and other natural catastrophes; epidemic, war, labor, or material shortage, strike or labor dispute, or sabotage; and also includes restraint by an order of a court of competent jurisdiction or by regulatory authorities against any action taken or not taken by a Party, after a good faith effort by the appropriate Party to obtain: (1) relief from such order; or (2) any necessary authorizations or approvals from any governmental agency or regulatory authority. 17. LIABILITY (a) To the extent allowed by the Federal Tort Claims Act, BPA agrees to defend, indemnify, and hold harmless Ashland, its affiliated companies, their respective boards of directors, officers, employees, agents and representatives, against and from any and all loss, claims, actions, or suits, for or on account of injury, bodily or otherwise to, or death of persons, or for damage to or destruction of property belonging to Ashland or others, resulting from BPA's negligent acts or omissions or intentional misconduct in connection with the performance of this Agreement, excepting that any liability attaching to BPA shall be reduced by any proportion that such injury or harm is caused by negligence or intentional misconduct of Ashland, its affiliated companies, their respective boards of directors, officers, employees, agents or representatives. (b) Ashland agrees to defend, indemnify, and hold harmless BPA, its employees, agents and representatives, against and from any and all loss, claims, actions, or suits, for or on account of injury, bodily or otherwise to, or death of persons, or for damage to, or destruction of property belonging to BP A, or others, resulting from Ashland's negligent acts or omissions or intentional misconduct in connection with the performance of this Agreement, excepting that any liability attaching to Ashland shall be reduced by any proportion that such injury or harm is caused by negligence or intentional misconduct of BPA, its employees, agents or representatives. (c) BPA and Ashland assert that neither Party is the agent or principal for the other, nor are they partners or joint ventures; and the Parties agree that they shall not represent to any other party that they act in the capacity of agent or principal for the other. (d) In no event shall either Party be liable to the other Party hereto for any special, punitive, exemplary, consequential, incidental, or indirect losses or damages from any failure of performance howsoever caused, whether or not arising from a Party's sole, joint, or concurrent negligence. (e) Ashland agrees that BPA has no responsibility for production of Energy Savings under this Agreement. 06ES-10738, Ashland 14 of 17 r- - ~-- - (f) Independent contractors contracting with either Party to implement the provisions of this Agreement shall be required by contract to indemnify and hold harmless the other Party from all claims, damages, losses, liability, and expenses arising from breach of contract, statutory and regulatory claims, and the negligent or other tortious acts or omissions of such independent contractors, their officers, employees, or agents. Nothing in this Agreement shall establish, or be construed as establishing, a contractual relationship between BP A and any contractor or subcontractor hired by Ashland to participate in the Project's implementation. 18. GOVERNING LAW AND DISPUTE RESOLUTION (a) This Agreement shall be interpreted consistent with and governed by Federal law. Final actions subject to section 9(e) of the Northwest Power Act are not subject to binding arbitration and shall remain within the exclusive jurisdiction of the United States Ninth Circuit Court of Appeals. Any dispute regarding any rights of the Parties under any BPA policy, including the implementation of such policy, shall not be subject to arbitration under this Agreement. Ashland reserves the right to seek judicial resolution of any dispute arising under this Agreement that is not subject to arbitration under section 18, Governing Law and Dispute Resolution. For purposes of section 18, Governing Law and Dispute Resolution, BPA policy means any written document adopted by BPA as a final action in a decision record or record of decision that establishes a policy of general application, or makes a determination under an applicable statute. If either Party asserts that a dispute is excluded from arbitration under section 18, Governing Law and Dispute Resolution, either Party may apply to the Federal court having jurisdiction for an order determining whether such dispute is subject to arbitration under section 18, Governing Law and Dispute Resolution. (b) Any contract dispute or contract issue between the Parties arising out of this Agreement, except for disputes that are excluded through section 18(a) above, shall be subject to binding arbitration. The Parties shall make a good faith effort to resolve such disputes before initiating arbitration proceedings. During arbitration, the Parties shall continue performance under this Agreement pending resolution of the dispute, unless to do so would be impossible or impracticable. (c) Any arbitration shall take place in Portland, Oregon, unless the Parties agree otherwise. The CPR Institute for Dispute Resolution's arbitration procedures for commercial arbitration, Non-Administered Arbitration Rules (CPR Rules), shall be used for each dispute; provided, however, that: (1) the Parties shall have the discovery rights provided in the Federal Rules of Civil Procedure unless the Parties agree otherwise; and (2) for claims of one million dollars or more, each arbitration shall be conducted by a panel ofthree neutral arbitrators. 06ES-10738, Ashland 15 of 17 ~-- ~- -~~ --~-r-- ----~ The Parties shall select the arbitrators from a list containing the names of 15 qualified individuals supplied by the CPR Institute for Dispute Resolution. If the Parties cannot agree upon three arbitrators on the list within twenty business days, the Parties shall take turns striking names from the list of proposed arbitrators. The Party initiating the arbitration shall take the first strike. This process shall be repeated until three arbitrators remain on the list, and those individuals shall be designated as the arbitrators. For disputes involving less than one million dollars, a single neutral arbitrator shall be selected consistent with section 6 of the CPR Rules. (d) Except for arbitration awards that declare the rights and duties of the Parties under this Agreement, the payment of monies shall be the exclusive remedy available in any arbitration proceeding. Under no circumstances shall specific performance be an available remedy against BP A. The arbitration award shall be final and binding on both Parties, except that either Party may seek judicial review based upon any of the grounds referred to in the Federal Arbitration Act, 9 U.S.C. U-16 (1988). Judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. (e) Each Party shall be responsible for its own costs of arbitration, including legal fees. The arbitrators may apportion all other costs of arbitration between the Parties in such manner as they deem reasonable taking into account the circumstances of the case, the conduct of the Parties during the proceeding, and the result of the arbitration. 19. NOTICES Any notice required under this Agreement shall be in writing and shall be delivered: (a) in person; (b) by a nationally recognized delivery service; or (c) by United States Certified Mail. Notices are effective when received. Either Party may change its address for notices by giving notice of such change consistent with this section. If to Ashland: If to BPA: City of Ashland 90 North Mountain Avenue Ashland, OR 97520 Attn: Dick Wanderscheid Director, Electric Utilities 541-488-5357 541-488-5311 wandersd@ashland.or.us Phone: FAX: E-Mail: Bonneville Power Administration P.O. Box 3621 Portland, OR 97208-3621 Attn: Rita Gill Phone: 503-230-4958 FAX: 503-230-5147 E-Mail: nmgill@bpa.gov 06ES-10738, Ashland 16 of 17 __.a. ~_.- -_....... --T -.-.- 20. SIGNATURES Each Party represents that it has the authority to execute this Agreement and that it has been duly authorized to enter into this Agreement. CITY OF ASHLAND By ~16/A A"-- Ity Admi~trator UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By ~ -1 _ :2:::.. Account Executive Name Martha Bennett Name Tina Ko Date IdlJ/tJ (r/ , Date -1./7 (,../~ (BUD-PNK-http://bpaweblorgslorgs%20mainlenergyefficiency/Contracts \Ashland-06ES-I0738.xml) 09/18106 06ES-10738, Ashland 17of17 ~- --- '-T ..--- Exhibit A PROJECTS, ENERGY SAVINGS, AND PROJECT BUDGETS PROJECT 1, COMMERCIAL AND INDUSTRIAL LIGHTING OFFER 1. PROJECT 1 DESCRIPTION The Commercial and Industrial Lighting Offer (C&ILO) provides reimbursements for lighting Measures installed in commercial and industrial facilities. Ashland shall implement this Project in accordance with the terms of this C&ILO to receive reimbursement from BP A. 2. DEFINITIONS In addition to the defined terms found in section 2 of the body of this Agreement, certain technical terms used in this Project are defined below. (a) Ballast is an electrical device used with Fluorescent or High Intensity Discharge Lamps to supply sufficient voltage to start and operate the Lamp(s) as well as to regulate the current to the Lamp(s) during operation. (b) Cold Cathode is an electric-discharge Lamp whose mode of operation is that of a glow discharge. Neon lights are an example of a Cold Cathode Lamp. (c) Color Rendering Index or cm is a measurement of a Lamp's ability to render colors accurately. The scale ranges from 0 to 100. A Lamp with a CRI of 80 and above is considered to be a high quality light source. (d) Compact Fluorescent Lamp or CFL is a smaller version of a Fluorescent Lamp. A CFL can screw into a regular light bulb socket or can plug into a small lighting Fixture. (e) Cut Sheet refers to the manufacturer's written technical descriptions of specific lighting equipment (Lamp, Ballast, reflector, etc.). The Cut Sheet is also referred to as a "tech sheet." (0 De-Lamp or De-Lamping refers to the removal of one or more Lamps from a Fixture or a Luminaire as part of a Retrofit. (g) Efficacy is a measure of a light source's efficiency and is described in terms of Lumens per watt. (h) Fixture refers to lighting equipment that is permanently attached or securely fixed in place. A Fixture consists of the housing but may include the Lamps and Ballasts as well. Fixtures screwed together (adjacent to each other) can be considered as separate Fixtures. (i) Fluorescent is a lighting technology that produces light by exciting organic phosphor material on the inner wall of a glass tube or bulb. 06ES-10738, Ashland 1 of 14 -- ....---. -.-----..-.. (j) Hard-wired Fixtures are new Fixtures that have Plug-In Lamp sockets instead of screw-in Lamp sockets making it impossible to screw in an incandescent bulb. (k) High Intensity Discharge or IllD is a light source that produces light by creating an arc of electricity across two electrodes. Types of HIDs include Mercury Vapor, High-Pressure Sodium, and Metal Halide Lamps. (1) High Output Fluorescent Luminaire is a new Fixture that includes Fluorescent Lamps that have a high Lumen output. High Output Fluorescent Luminaires are most often located in a high bay, e.g., a high mounting height location. (m) High Performance is a generic term that is used to describe certain Measures offered under this C&ILO that are more energy efficient than standard lighting products. (n) High Pressure Sodium is a yellowish appearing HID light source that has a low CRI. (0) Induction Lamp is a Fluorescent technology that excites the phosphorous material with high frequency radio waves instead of using an electrical discharge. The expected life of these Lamps is 80,000 plus hours. (p) Installer is the person or company that installs the lighting Measures as allowed under this C&ILO. (q) Lamp is a generic term for an artificial light source. (r) Light Emitting Diode or LED is a semiconductor that glows when a current is passed through it. LEDs are low Lumen, low wattage devices that produce a directional light beam. LEDs can be arranged in different patterns and therefore are ideal for signage lights. (s) Lumen is the unit of measure for the total light output of a Lamp or Luminaire. (t) Lumen Maintenance refers to the decrease of the Lamp Lumen output over time. Such a decrease is caused by bulb wall blackening, phosphor exhaustion, filament depreciation, and other factors. Lumen Maintenance is also referred to as Lamp Lumen depreciation. (u) Luminaire refers to the entire lighting unit and primarily includes the housing, Lamp, the Lamp holder, the Ballast, the lens, and the reflector. Strip Fixtures where the Installer installs all new Lamps, Lamp holders, Ballast, lens, and reflector can be considered a new Luminaire. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 2 of 14 ~_._- ........~_._^._.~-_...--..- (v) Mercury Vapor is an older type of HID light source that has a low CRI and low Efficacy. (w) Metal Halide is considered the best HID light source for most applications. Metal Halides produce a neutral white light that has a relatively high CRI. (x) Nominal means "manufacturer stated." A manufacturer will stamp a value on the piece of lighting equipment or on the nameplate that is usually expressed in watts or Lumens. (y) Plug-In Lamp or PL designates a snap or plug-in Fluorescent Lamp as opposed to a screw-in type Lamp. (z) Probe-Start refers to the typical method for starting a Metal Halide bulb. Probe-Start is less efficient than the pulse-start method. (aa) Retrofit means the installation of new Lamps and Ballasts in existing Fixtures. In some cases, reflectors may be added and old lenses may be replaced. (bb) T5s, T8s, and T12s are Fluorescent tubes that are 5/8 inch in diameter, 1 inch in diameter, and 1-112 inches in diameter, respectively. (cc) Total Harmonic Distortion or THD is a measure of how close the wave form of an electronic device is to a perfect sine curve. THD is expressed as a percentage. The higher the percentage of THD, the higher the distortion level. A THD percentage of 20 percent or less is considered a low distortion level. A device that creates a high distortion can reduce the expected life of such equipment, and in some instances reduce the expected life of surrounding equipment. (dd) Very High Output Fluorescent Lamps are Fluorescent Lamps that are designed to have significantly higher Lumen output than standard Lamps. The Ballasts overdrive these Lamps to the point where they m:e inefficient and have short lives. These Lamps are targeted for Retrofit or in some cases the entire Fixture replaced. (ee) Underwriters Laboratory or UL is an independent laboratory that evaluates products primarily for safety. A UL label or rating indicates a measure of safety. 3. PROJECT REQUIREMENTS (a) Ashland may implement this Project using Ashland's staff or contractors to provide the services necessary to install the Measures. (b) Only Units installed in industrial and commercial facilities served by Ashland are eligible for reimbursements under this Project. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 3 of 14 --- --"- ~- _. ----.1" (c) BPA shall only pay for new equipment. (d) Except for Units that were Work in Progress at the time this Agreement replaced Purchase of Conservation Agreement No. 0IES-I0379. BPA shall not pay reimbursements for equipment purchased prior to execution of this C&ILO. (e) All Measures shall be Completed Units prior to requesting reimbursement from BP A. (f) Ashland shall retain all supporting documents for lighting Measures as required in section 8 of the body of this Agreement. (g) BPA shall only pay for Completed Units that are cost-effective. Measures available in the C&ILO - Commercial and Industrial Lighting Schedule (Schedule) are determined by BPA to be Cost- Effective. Additional Measures proposed pursuant to section 6 of this Project shall be evaluated by BP A for cost-effectiveness. Cost- Effective Units are those that have a Total Resource Cost Benefit/Cost ratio equal to or greater than 1 in the RTF system. (h) Reimbursements from BP A are only available for replacement of existing equipment in existing facilities. (i) All Sub-Projectsl must reduce the affected lighting wattage by 30 percent or greater, where: Percent Watt Reduction = 100 x (Input Watts of Removed Lighting - Input Watts of Installed Lighting) + Input Watts of Removed Lighting. (j) All Ballasts and Luminaires shall be UL rated. (k) Ballast Warranty: All electronic Ballasts shall be warranted against defects in material and workmanship for a minimum of three years, except for those Ballasts listed under sections 5(a), 5(b), and 5(1) ofthis Project which shall be warranted for five years. The warranty shall include either a 10-dollar replacement labor allowance or complete replacement including labor by an agent of the manufacturer. (1) Lamp Warranty: Lamps shall be warranted against defects in material and workmanship for two years. The warranty shall provide for replacement Lamps. 1 "Sub-Projects" shall be defined as a Measure or group of Measures included in a report submitted to BPA by Ashland. The term "Project" refers to the entire C&ILO and includes all "Sub-Projects" reported by Ashland and accepted for payment by BP A. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 4 of 14 (m) Compact Fluorescent Light Warranty: CFLs shall be warranted for at least one year, or for the manufacturer's stated life of the CFL. (n) All Ballasts shall be capable of starting the Lamps at the appropriate ambient (surrounding) temperatures. Examples of such ambient temperatures include indoor heated, indoor non-heated, normal outdoor, and cold climate outdoor. (0) Ashland shall ensure that all materials, including Polychlorinated Biphenyls (PCB) Ballasts are disposed of, or recycled, in accordance with current environmental laws. 4. REIMBURSEMENTS AND REPORTING OF LIGHTING MEASURES BPA's reimbursements for lighting Measures are shown in Schedule. (a) Ashland shall verify that all Measures submitted for reimbursement have been installed, are operating correctly and meet the specifications for the Measure installed. (b) Ashland shall complete the electronic version of the Standard Offer Lighting Spreadsheet Tool (Tool) available in the RTF system for each facility where Measures are installed. Ashland shall ensure that Measure location descriptions clearly describe the actual location the Measure(s) are installed. (c) Ashland shall label all supporting documents for Measures included in the Tool with the unique reporting system number and submit the RTF system report to BP A. Ashland shall label the completed Tool with the unique reporting system number and submit the Tool directly to the BP A contact shown in section 7(c) ofthe main body of this Agreement. 5. REQUIREMENTS FOR LIGHTING MEASURES Ashland may offer programs to their Consumers for any or all of the Measures shown in the Schedules. Ashland shall follow the procedures and requirements below to receive reimbursement from BP A. (a) High Performance T8 Fluorescent Lamps and Electronic Ballasts (1) This Measure can be installed as part of a Retrofit or included as part of a new Fixture. (2) This Measure must replace a T12 Fluorescent, T8 De-Lamp, incandescent, Mercury Vapor lighting, standard T8. (3) This Measure primarily consists of 4-foot T8 Lamps, but may include T8 Lamps between 2 feet and 8 feet in length. High Performance T5 Linear Fluorescent Lamps may be included as part of this Measure if they become commercially available. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 5 of 14 ~--- - -- -- -~ - --------, - --------------- (4) The Ballast input watts shall be from 15 to 114 watts. (5) The Lamps shall have: (A) a CRI equal to or greater than 82; (B) a Lumen Maintenance equal to or greater than 94 percent; (C) a Lamp life equal to or greater than 24,000; and (D) 4-foot F32T8 (Fluorescent 32 watt T8) Lamps shall, for Kelvin ratings less than 5000, have initial output equal to or greater than 3,100 Lumens. For Kelvin ratings 5000 and greater than, 4-foot F32T8 (Fluorescent 32 watt T8) Lamps shall have an initial output equal to or greater than 3000 Lumens. (6) Lamp/Ballast combinations shall have an Efficacy of equal to or greater than 95 Lumens per watt. Lamp/Ballast Efficacy = (Initial Lamp Lumens x No. of Lamps x Ballast Factor) + Ballast Input Watts. (7) Ashland shall submit either the manufacturer's Cut Sheet documenting initial Lamp Lumens, Lamp Lumen Maintenance, Ballast factor, and Ballast input watts, or list the manufacturer's model numbers and performance when submitting a report to BPA for this Measure. (b) T8 or T5 Fluorescent Lamps and Standard Electronic Ballast (1) This Measure can be installed as part of a Retrofit or included as part of a new Fixture. This Measure is to be installed only when the Measures described in section 12(a) would not be most appropriate to install at a particular facility. (2) This Measure includes T8 and T5 linear Fluorescent Lamps, 2 feet to 8 feet in length. (3) The Ballast input watts shall be from 15 to 114 watts. (4) Lamps shall have: (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 90 percent; (C) a Lamp life equal to or greater than 20,000 hours; and 06ES-10738, Ashland 6 of 14 Exhibit A, Project 1: C&ILO ~ r" (D) any 4-foot F32T8 (Fluorescent 32 watt T8) Lamps shall have initial output equal to or greater than 2,800 Lumens. (5) Lamp/Ballast combinations shall have an Efficacy of equal to or greater than 80 Lumens per watt. Lamp/Ballast Efficacy = (Initial Lamp Lumens x No. of Lamps x Ballast Factor) + Ballast Input Watts. (c) Hardwired Compact Fluorescent (1) This Measure includes both Hardwired Compact Fluorescent Fixtures and Retrofits. (2) The Ballast input watts shall be from 7 to 99 watts. (3) This Measure must replace existing incandescent or Mercury Vapor lighting. (4) Any Hard-wired Retrofits must remove the existing screw-in Lamp sockets. Recessed Fixtures must include a reflector designed for the new Lamp. (5) Lamps shall have: (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 80 percent; and (C) a Lamp life equal to or greater than 10,000 hours. (6) Ballasts shall have: (A) a power factor equal to or greater than 90 percent; (B) a THD less than or equal to 33 percent; (C) a Lamp current crest factor ofless than or equal to 1.7, Class A sound rated; and (D) an end of life protection provided. (7) Lamp/Ballast combinations shall have a minimum Efficacy of 46 Lumens per watt for Lamps under 30 watts, and 60 Lumens per watt for Lamps 30 watts or greater. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 7 of 14 ~. . ---. --r ... (d) Ceramic Metal Halide Luminaire Ceramic Metal Halide is a Hard-wired Fixture that uses a HID Lamp. The Ceramic Metal Halide: (1) shall have a nominal lamp wattage between 20 and 250 watts; (2) must replace existing incandescent lighting or Mercury Vapor lighting; and (3) shall have Lamps that have: (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 80 percent; and (C) a maximum color shift over the life of the Lamp ofless than or equal to 200 degrees Kelvin. (e) Screw-in Compact Fluorescent Lamps (1) This Measure may consist of either: (A) a one-piece or modular screw-in CFL that is rated at 3 watts or above (nominal); or (B) screw-in Cold Cathode Lamps. (2) The Measure must replace existing incandescent or Mercury Vapor lighting. (3) The installation of this Measure in recessed Fixtures is not recommended; however, if done, the Lamps in recessed Fixtures must include a reflector designed for the Lamp. (4) Screw-in compact Fluorescents must bear the ENERGYSTAR@label and meet the ENERGY STAR@ specifications for energy.efficiency. These specifications are located on the EPA Energy Star website at: httD://www.enerllVstar.gov/index.cfm?c=lighting.Dr lighting Where ENERGY STAR@ specifications do not apply, substitutions may be allowed with prior written approval from BPA. (f) LED or Cold Cathode Signs (1) This Measure includes new LEDs or Cold Cathode signs. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 8 of 14 -r-'- --".--~----.T--~-' _~______.__m_~ (2) This Measure must be a Retrofit or replace an existing incandescent or neon sign. (3) The new signs must meet the ENERGY STAR@ specificati~ns for energy efficiency. These specifications are located on the EPA Energy Star website located at: httD://WWW.enel"2Vstar.Eov/index.cfm?c=liEhtinE.Dr liEhtinE (4) The input power must be less than 5 watts per face. (g) Induction Lamp Luminaire (1) This Measure shall be new, however, in some cases, high-quality Fixtures may be retrofitted. Such Fixtures shall be heat tested to . ensure that the Retrofit configuration is within the manufacturer's required temperature range. (2) This Measure must replace existing incandescent or Mercury Vapor lighting. (3) The Lamps shall have: (A) a CRI equal to or greater than 80; and (B) a Lamp life equal to or greater than 80,000 hours. (h) High-Output Fluorescent Luminaire (1) This Measure is a Luminaire that may include new T5, T8, or long twin-tube PL. The Lamps can be either standard or high-output Lamps. The Luminaire must be either 4-foot or 8-foot in length. (2) The Ballast input watts shall be from 85 to 600. (3) This Measure must replace: (A) T12 Fluorescent/magnetic Ballasts; (B) Mercury Vapor; (C) High Pressure Sodium; (D) Probe-Start Metal Halide; or (E) incandescent bulbs. (4) The Lamps shall have: 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 9 of 14 -~.~--~-~~--_.._'-..._-_._~ (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 90 percent; and (C) a Lamp life equal to or greater than 18,000 hours. (5) The Lamp/Ballast combination shall have an Efficacy of greater than 80 Lumens per watt. (i) Pulse Start Metal Halide Luminaire (1) This Measure shall be a new Luminaire and shall be installed only when it is not feasible to install High Output Fluorescent Luminaires. (2) The Ballast input watts shall be from 300 to 750 watts. (3) Lamps shall have: (A) a CRI equal to or greater than 65; (B) a Lumen Maintenance equal to or greater than 75 percent; and (C) a Lamp life equal to or greater than 20,000 hours. (4) The Lamp/Ballast combination shall have an Efficacy equal to or greater than 89 Lumens per watt. (j) Occupancy Sensors and Timers (1) This Measure includes infrared, ultrasonic, and dual-technology sensors. This Measure may be installed on wall, ceiling, or Fixture mounts. Timers can also be included as part of this Measure. Either the occupancy sensor or the timer can qualify for incentives under this C&ILO. (2) The occupancy sensor must be compatible with the controlled lighting equipment. (3) The infrared sensors shall require an unobstructed view of targeted motion. (4) All sensors shall be tuned after installation for proper coverage, sensitivity, and time delay. (5) The timers and the occupancy sensors shall be rated for the controlled wattage. (6) The timer may be either electronic or mechanical. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 10 of 14 (k) High Output Fluorescent Retrofit (1) High Output or Very High Output T12 Fluorescent equipment shall be retrofitted with T8 High Output Lamps and Ballasts. This Measure does not require a new Fixture. The Lamps and the Ballasts shall be new. (2) The input watts of the existing Luminaire shall be greater than 200 watts. (3) The Lamps shall have: (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 90 percent; and (C) a Lamp life equal to or greater than 18,000 hours at existing conditions. (4) Lamp/Ballast combination shall have an Efficacy of greater than 80 Lumens per watt. (l) Very High Output Retrofit with T5 Lamps and Ballasts (1) Very High Output Fluorescent Lamps (T12) equipment shall be retrofitted with T5 Lamps and Ballasts. This Measure does not require a new Fixture. The Lamps and the Ballasts shall be new. This Measure is to be installed only for applications where the Lumen output must be equivalent to the Lumen output of the existing equipment. (2) The input watts of the existing Fixture shall be greater than 400 watts. (3) The Lamps shall have: (A) a CRI equal to or greater than 80; (B) a Lumen Maintenance equal to or greater than 90 percent; and (C) a Lamp life equal to or greater than 20,000 hours at existing conditions. (4) The Lamp/Ballast combination shall have an Efficacy of greater than 80 Lumens per watt. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 11 of 14 - _.. --..- .......------^------y-'" -. ..--.------.-"..-..,.--.. - (m) Equipment Not Listed in the Tool Ashland may install equipment as part of the Measures listed in this section that are not specifically listed in the Tool as long as they meet the Measure specifications as listed above. Ashland shall enter the information regarding such equipment in the Tool. 6. CONSIDERATION OF ADDITIONAL LIGHTING MEASURES Ashland may request BPA's consideration of lighting Measures that are not included in the Schedule. BPA shall review the request and provide notice approving or disapproving the addition of the requested lighting Measure. 7. MEASURE LIFE The Measure life for all Measures under this Project is 10 years except for CFLs, which is three years. If a stranded investment or reimbursement charge is calculated pursuant to section 13(e) of the body of this Agreement, the Measure life provided in this section shall be used for the calculation. 8. IMPLEMENTATION PERIOD This Project may be implemented from the execution date through September 30, 2007, provided that all Measures installed under this Project are Completed Units by this date. 9. IMPLEMENTATION BUDGET (a) Implementation Budget Amount BPA shall provide 23,529 dollars for implementation of this Project. Ashland may invoice BP A up to this total Implementation Budget amount for Completed Units installed pursuant to this Project. (b) Request for Additional Implementation Budget If Ashland expends this Implementation Budget amount prior to September 30, 2007, Ashland may request additional Implementation Budget. BP A shall review the request and will provide notice accepting or rejecting the request. IfBPA approves the addition of an amount to the Implementation Budget for this Project, BPA will revise this Project and send the revised Project to Ashland. (c) Implementation Budget Review BPA shall periodically review Ashland's activities and implementation under this Project. In consultation with Ashland and after providing three months written notice, BPA may reduce the Implementation Budget. IfBPA reduces the Implementation Budget for this Project, BPA will revise this Project and send the revised Project to Ashland. BP A shall take into account all factors that Ashland believes will affect future rates of expenditure. If requested by BPA, Ashland shall provide a list of potential lighting Sub-Projects to BPA. BPA shall not reduce the Implementation Budget below: (1) the level needed to meet all the estimated costs oflighting Sub- Projects under review by BP A; and 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 12 of 14 -~_.- .,--'- -.. .-.... ---T.'---.-"----..~-'--.-....-- (2) the level needed to cover the estimated cost associated with all lighting Sub-Projects that have been presented to Ashland by any Consumer, and that, in the opinion of Ashland have a high likelihood of gaining Ashland and BP A approval. (d) Administrative Allowance Ashland may choose to receive an administrative payment of up to 15 percent of the reimbursement amount on each report submitted to BPA for reimbursement. BPA shall, when the report is accepted, pay the administrative allowance amount requested. Administrative payments from BPA shall be paid pursuant to section 7(d) of the body of this Agreement. 10. REPORTINGANDPAYMENT (a) Frequency of Invoicing Ashland may submit reports to BPA for Completed Units, but no more often than once per month. BP A shall review the report and pay for those lighting Measures accepted by BP A. (b) Final Invoicing Ashland shall have until October 31, 2007, to submit final invoices for lighting Measures that were Completed Units by September 30,2007. (c) Alternative to RTF Reporting Ashland may, only when approved in writing by BPA, submit completed and signed Schedules directly to BP A as provided in section 7 of the body of this Agreement. If this alternative is approved by BPA, BPA may impose additional requirements with the written approval. 11. CONSUMER TRIGGERED STRANDED CONSERVATION INVESTMENTS (a) Ashland shall repay BPA's conservation investment if the BPA payment to Ashland to achieve any portion of Energy Savings associated with a lighting Sub-Project was a single payment of 100,000 dollars or greater for Completed Units installed in a Consumer's facility. The repayment shall be due to BPA when the Consumer: (1) stops purchasing all of its electricity from Ashland, but (2) continues to operate with electricity provided by any other entity, including energy the Consumer produces from its own generation resources, and (b) Ashland shall notify BPA when a repayment is due BPA pursuant to section 13(a). BPA shall calculate the repayment amount using the formula in section 13(e) of the body of this Agreement. 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 13 of 14 -- ---- -,--------mT (c) The repayment shall be made within sixty business days of the date the Consumer ceased purchasing all its electricity from Ashland. Ashland shall reference the Agreement number on the repayment document. The repayment shall be remitted by electronic funds transfer to BPA's account or by check to the following address: Bonneville Power Administration P.O. Box 894196 Los Angeles, CA 90189-4196 (BUD-PNK-http://bpaweblorgslorgs%20mainlenergyefticiency/Contracts \Ashland-CILO.xml) 09/06106 06ES-10738, Ashland Exhibit A, Project 1: C&ILO 14 of 14 ------- ~-----.-T - - - - Title: Address: Existing Equipment T12 Fluorescent, T8 De-Lamp, Incandescent, or Mercury Vapor Incandescent or Mercury Vapor T12 Fluorescent orMV/HPS or C&ILO - Commercial and Industrial Lighting Schedule Includes T8, 2' to 8' Lamps: Ballast: PF ~ 95%, THD .s 20%. LamD: Lumen Maint. ~ 94%, CRI ~ 82, Lamp life ~ 24,000 hrs, 4' Lamp<5000 Kelvin w / Lumens ~ 3,100 or <5000 Kelvin w / Lumens ~ 3,000, Initial LumenslWatt ~ 95 1. 1 Lamp and electronic Ballast (15 to 44 input watts) Project #: Invoice#: Reimbursement Per Unit Total by Measure 2. 2 to 4 Lamps and electronic Ballast (45 to 114 input watts) FY06 $20 $40 FY07 $15 $30 Includes T8 and T5, 2' to 8' Lamps. Ballast: PF ~ 90%, THD .s 20%. LamD: Lumen Maint. ~ 90%, CRI > 80, 4' Lamp Lumens> 2,800, 4' Lamp life> 20,000 hrs, Initial LumenslWatt > 80 1. 1 Lamp and standard electronic Ballast (15 to 44 input watts) FY06 FY07 $15 $8 2. 2 to 4 Lamps and standard electronic Ballast (45 to 114 input watts) $30 $15 I Pubt' Sl.II't :\1l't,tll-LllIdt' LUl11m,lIn' 1:\1'\\ FlxtUl't'1 06ES-10738, Ashland Exhibit A, Project 1 B T,') Ol' T,', FllIO! (',(('nt I..lmp' .Jnd :-,LI Ild.J I d EI(, tl Olll( l\.tlLl,t (' ILlId\\IIl'd Ctllllp.J1t 1:llIoll"(('llt Hardwired Ballast and replaceable Lamp, CRI > 80, see Specifications for Lumens/Watt requirement 7 to 49 Watts (Nominal Lamp Watts) $30 50 to 99 Watts $50 Includes one Piece or Modular, Energy Star compliant where applicable. Includes Cold Cathode Lamps. 1. 3 to 24 Watts (Nominal Lamp Watts) $3 2. 25 to 45 Watts $6 3. over 45 Watts $12 $30 $60 $120 Includes T8, T5, long twin tube T5; 4' and 8'. Ballast: PF ~ 90%, THD .s 20%. LamD: Lumen Maint. > 90%, CRI > 80, Lamp life> 18,000 hrs, Initial LumenslWatt > 80 1. 85 to 129 Watts (Ballast Input Watts) $80 2. 130 to 189 Watts $100 3. 190 to 249 Watts $120 .-....----.-..-.-..........-.......-----.-.............---............--..................--.............._..._................... ................................................._._......................._......._..__................ ... .__._.............._................_...._....._.u........ 4. 250 to 600 Watts $140 Probe-Start Metal Halide or Lamp Life> 20,000 hrs, Lumen Maint. > 75%, CRI > 65, Initial LumenslWatt > 89 Incandescent 1. 300 to 399 Watts (Nominal Watts)_____~,!QQ_____,__, 2. 400 to 750 Watts $150 ,-.-- ~----'-.- -------- lof2 Title: Address: C&ILO - Commercial-Industrial Lighting Schedule (continued) Project #: Invoice #: "S'T12 Reimbursement Per Unit Total by Measure Existing Equipment Manual Control $35 $45 HO and VHO VHO Includes Lampl Ballast retrofits only; Ballast: PF > 90%, THD ~20%. Lamp: 4' T5 HO. Lumen Maint. ~ 90%, CRI > 80, Lamp life> 20,000 hrs, Initial LumenslWatt > 80 1. 2 T5 Lamp and high output Ballast $25 2. 4 T5 Lamps and high output Ballast $50 A. Reimbursement Item Total ($): B. Total Project Costs: C. 70% of Project Cost: D. Lower of "A" or "C" above: E. _ % of "D" above (not to exceed 15%): F. Reimbursement ("0" plus "E"): Percent (%) Wattage Reduction: Annual kWh Savings: "S'T12 Useful Information 1. Has the installed equipment met the Project requirements and specifications? 2. Are the Measures listed properly installed and operating? 3. Has the Sub-Project achieved a 30% or greater Watt Reduction? 4. Have invoices been labeled with the unique identifying number from the RTF reporting system? Completed By: (Yes/No) (Yes/No) (Yes/No) (Yes/No) Date: (BUD-PNK-http://bpaweblorgslorgs%20main/energyefficiency/Contracts \Ashland-CILO.xml) 09/06106 06ES-I0738, Ashland Exhibit A, Project 1 2of2 -- ,.-~~ ~"----_._-_._----- IITIMN331 - CONTRACT CHANGE REQUEST - [PROD] ". 1)111:11 ~!I! '>. CnI Chg Req:I~t.; Conlr8cl: 10!J022713 ~er.ISJN3647 OCR Type: I Image: I Prnjecl: h'. . ,r, ';;" A.' Reference:l.i:..:J I CCR Tille: lNO COST TIME EXTENSION -.... . .1 100000 109J20J'.20ll6 .Bj .:I CCR51atus:~....i: :.:I 109I20f2006. bBj Contr8Ct5181US:~ ...../1 .:II08J1!i12OQ5;Bj Approved On: ~ Bj FecJGrP~r-: ~ ~ Safely Code: n Priorly:r-3 Amendment: r-J M "~'"'~.'"'"M',_. ~._., _~____",."_~~..._ "..,.",.. ~__ _ _~_._..~_ ______.M' _ ". _ ~~~_. .._ _ "_".,,,__ ,_" "___ __....".._~~~_ Contract Value Method NTX 5l8rt End ~ r 105i23J2C(l:$'.5l . I09J3OJ2OO6 .5l . I ~ r ~.t;.:.. .;;, Bj . 1"""'^..........,.5l ' J ,', '.:J fA'>', ~N' ' ~~'1l{ ~ Vendor LocaIlon I""~'Y'~ 100"" ....&...~W\,lt','~"X' ,~j.Y~ 1,;; I:"A>~;',,, i! R Prior: I " /j;l;,:j 0,':;'< , ' ";r,n~/~ Ch8nge; I.~, ~;} Vi .., ::v,' Newvalue:liJ~'~'il::,(I;':;,vf '.' IIIII1III ScopeUpd8le:L:J: I:.'.'I:L I.;!'I. . (,~ ,- ,,- Bj -- ~Resources: f? __ RecornmendAcd: f? _ ._, " . h --- L ~ Exhibit A PROJECTS, ENERGY SAVINGS, AND PROJECT BUDGETS PROJECT 2, COMMERCIAL AND INDUSTRIAL STANDARD OFFER 1. PROJECT 2 DESCRIPTION The Commercial and Industrial Standard Offer (C&ISO) provides reimbursements for custom Sub-Projectsl and specific deemed Measures installed in commercial facilities. Ashland shall implement this Project in accordance with the terms of this C&ISO to receive reimbursements from BP A. 2. PROJECT REQUIREMENTS (a) Ashland may implement this Project using Ashland's staff or contractors to provide the services necessary to install the Measures. (b) Only Units installed in industrial and commercial facilities and new multifamily buildings more than three stories served by Ashland are eligible for reimbursements under this Project. (c) BPA shall only pay for new equipment. (d) Except for Units that were Work in Progress at the time this Agreement replaced Purchase of Conservation Agreement No. 0IES-I0379, BPA shall not pay reimbursements for equipment purchased prior to execution of this C&ISO or for equipment purchased prior to BPA's written approval of the measurement and verification plan for a custom Sub-Project. (e) All Measures shall be Completed Units prior to requesting reimbursement from BPA. (f) Ashland shall retain all supporting documents for deemed Measures and custom Sub-Projects as required in section 8 of the body ofthis Agreement. (g) BPA shall only pay for Completed Units that are cost-effective. Cost-effective Units are those that have a Total Resource Cost Benefit/Cost ratio equal to or greater than 1 in the RTF system. (h) Ashland shall use the Custom Project Proposal Template in the RTF system to propose custom Sub-Projects pursuant to section 3 of this Project. Custom Sub-Project proposals and Completion Reports shall be submitted to BPA through the RTF system. 1 "Custom Sub-Projects" shall be defined as a Measure or group of Measures submitted to BPA by Ashland for evaluation in accordance with this C&ISO. The term "Project" refers to the entire C&ISO and includes all "custom Sub-Projects" accepted by BPA for payment pursuant to this Project. 06ES-I0738, Ashland lof7 I (i) BPA shall make the final decision as to whether any Measure or custom Sub- Project proposal meets the eligibility requirements and criteria stated in this Project whether and or not to accept the measurement and verification planes) in custom Sub-Project proposals. (j) BPA may reject stand-alone lighting Measures. 3. REQUIREMENTS FOR CUSTOM SUB-PROJECTS Ashland shall follow the procedures below for custom Sub-Projects. BPA shall evaluate all custom Sub-Project proposals using the information provided by Ashland in the Custom Project Proposal Template. (a) Custom Sub-Project Proposal Submission Process (1) Ashland shall submit a completed Custom Project Proposal Template for each custom Sub-Project to BPA. (2) Upon initial review of Ashland's custom Sub-Project proposal, BPA may request additional information or clarification of information given. BP A may suggest changes to the measurement and verification methodology proposed prior to making its determination to accept or reject the custom Sub-Project proposed. (3) Upon completion of the review of a custom Sub-Project proposal, BPA shall provide Ashland written notice either accepting or rejecting the measurement and verification plan for the custom Sub-Project proposed. BP A may also provide comments on those custom Sub- Projects with estimated Energy Savings greater than 200,000 kWhs. (4) Once Ashland receives BPA's written acceptance, then Ashland may initiate the purchase and installation of the custom Sub-Project approved by BPA. (5) The Parties agree that BPA's written acceptance of a submitted custom Sub-Project proposal incorporates such custom Sub-Project in to this Project. (b) Completion Report for Custom Sub-Projects Ashland shall submit a written Completion Report for all custom Sub-Projects added pursuant to section 3(a)(5). (1) Elements of Completion Report The Completion Report shall include, but is not limited to, the following: (A) a description of the equipment installed and how this differs, if at all, from the description provided in the original custom Sub- Project proposal; 06ES-I0738, Ashland Exhibit A, Project 2: C&ISO 20f7 (B) the actual Energy Savings as determined from the results of the measurement and verification plan agreed to by BP A pursuant to section 3(a)(5), and information on the methodology, assumptions, and formulas used; (C) the actual total custom Sub-Project costs, including, but not limited to, auditing and engineering costs, equipment costs, equipment installation and removal costs; instrumentation and data collection costs, cost of permits, inspection fees and, if applicable, taxes; (D) any changes in equipment installation or operations from what was described in the custom Sub-Project proposal; and (E) the date on which the custom Sub-Project was properly installed and made fully operational, and, when applicable, commissioned in accordance with the manufacturer's requirements and specifications for normal operations. (2) Additional Information Mer initial review of the Completion Report, and after consultation with Ashland, BPA may ask for additional information pertaining to the custom Sub-Project. IfBPA determines that the Completion Report is still incomplete, BPA shall request Ashland revise and resubmit the Completion Report based on comments received from BPA. (3) Notification by BPA Upon completing its review of the Completion Report, BPA shall provide written notice to Ashland either accepting or rejecting the Completion Report. 4. ENERGY SAVINGS REQUIREMENTS FOR CUSTOM MEASURES (a) Ashland shall use the measurement and verification plan approved by BPA to determine the actual Energy Savings for each custom Sub-Project accepted by BPA pursuant to section 3(a)(5). (b) BPA may request and Ashland shall make arrangements for site visits by BP A representatives, for review of the measurement and verification methodology proposed in a custom Sub-Project proposal, or as part of BPA's review of a Completion Report. 5. PAYMENT FOR CUSTOM SUB-PROJECTS BPA shall reimburse Ashland for custom Sub-Projects incorporated into this Project pursuant to section 3(a)(5) when the Completion Report is accepted by BPA pursuant to section 3(b)(3). BPA's reimbursement amount shall be the lesser of the cents per first year kWh saved or actual total cost of the custom Sub-Project for the end use sector cost shown in the table below. 06ES-I0738, Ashland Exhibit A, Project 2: C&ISO 3of7 (a) BPA's reimbursement for industrial custom Sub-Projects allows Ashland to request technical assistance from BPA with industrial facility audits and development of custom Sub-Project proposals. Ashland may request such technical assistance from BPA. Requests shall be in writing and shall include the Consumer's name and the type of assistance requested. BPA shall review the request for technical assistance and, if approved, provide such technical assistance to Ashland. (b) BPA's reimbursement for custom Sub-Projects which BPA provided written notice of acceptance under Purchase of Conservation Agreement No. 01ES- 10379 shall be paid at the reimbursement rate of Purchase of Conservation Agreement No. 01ES-10379. BPA's reimbursement shall not include the administrative allowance. Commercial New Multifamil Industrial New Construction . >3 Stories $0. 13/kWh $0.20/kWh $0.12/kWh $0.20/kWh 60% 70% 60% 70% 6. REIMBURSEMENTS AND REPORTING OF DEEMED MEASURES BPA's reimbursements for deemed Measures are shown in the C&ISO Commercial Measures Schedule (Schedule). (a) Ashland shall verify that all Measures submitted for reimbursement have been installed, are operating correctly and meet the specifications for the Measure installed. (b) Ashland shall enter Completed Unit information for any Measure eligible for reimbursement under this Project into the RTF system, label all supporting documents with the unique identifying reporting system number from the report and submit the RTF system report to BP A. 7. REQumEMENTS FOR DEEMED MEASURES Ashland may offer programs to their Consumers for any or all of the Measures shown in the Schedule. Ashland shall follow the procedures and requirements below to receive reimbursement from BPA. (a) Network Computer Power Management Measure Network control devices shall be an advanced energy management system using Verdiem's SurveyorTM software or equivalent. (b) Pre-rinse Spray Wash Valve Pre-rinse Spray Wash Valves are eligible for reimbursement when installed in Consumer's facilities that have electric water heaters for the water supplied to the valve and that service ten or more meals per week. 06ES-I0738, Ashland Exhibit A, Project 2: C&ISO 4of7 (c) Commercial Clothes Washers Commercial clothes washers shall meet the efficiency requirements and shall be installed in qualifying facilities to be eligible for reimbursement from BP A. Requirements for Commercial clothes washers are shown in the table below. . May be installed in multifainily common or commercial laundromat facilities. 8. MEASURE LIFE The Measure Life for all Measures under this Project is 10 years unless otherwise stated by notice to Ashland. If a stranded investment or reimbursement charge is calculated pursuant to section 13(e) of the body of this Agreement, the Measure life provided in this section shall be used for the calculation. 9. IMPLEMENTATION PERIOD This Project may be implemented from the execution date through September 30, 2007, provided that all deemed Measures installed under this Project are Completed Units by this date. For custom Sub-Projects: (a) Ashland may complete measurement and verification activities for custom Sub-Projects accepted pursuant to section 3(a)(5), provided such custom Sub- Projects are installed and operating by September 30, 2007. Completion Report(s) may be submitted after September 30, 2007, provided they are submitted no later than September 30, 2008. (b) Ashland shall provide, by October 15, 2007, BP A with a list of those custom Sub-Projects accepted pursuant to section 3(a)(5) that were installed and operating by September 30,2007, but for which the Completion Report is yet to be submitted. 10. IMPLEMENTATION BUDGET (a) Implementation Budget Amount BPA shall provide 50,000 dollars for implementation of this Project. Ashland may invoice BPA up to this total Implementation Budget for Completed Units installed pursuant to this Project. (b) Request for Additional Implementation Budget If Ashland expends this Implementation Budget amount prior to September 30, 2007, Ashland may request additional Implementation Budget. BP A shall review the request and will provide notice accepting or rejecting the request. IfBPA approves the addition of an amount to the Implementation Budget for this Project, BP A will revise this Project and send the revised Project to Ashland. 06ES-I0738, Ashland Exhibit A, Project 2: C&ISO 5of7 (c) Implementation Budget Review BPA shall periodically review Ashland's activities and implementation under this Project. In consultation with Ashland and after providing three months written notice, BPA may reduce the Implementation Budget. IfBPA reduces the Implementation Budget for this Project, BPA will revise this Project and send the revised Project to Ashland. BP A shall take into account all factors that Ashland believes will affect future rates of expenditure. If requested by BP A, Ashland shall provide a list of potential deemed Measures and custom Sub-Project proposals to BPA. BPA shall not reduce the Implementation Budget below: (1) the level needed to meet all the estimated costs of deemed Measures and custom Sub-Projects either approved by BPA, or custom Sub- Project Proposals that are under review by BPA; and (2) the level needed to cover the estimated cost associated with all deemed Measures and custom Sub-Project proposals that have been presented to Ashland by any Consumer, and that, in the opinion of Ashland have a high likelihood of gaining Ashland and BPA approval. (d) Administrative Allowance Ashland may choose to receive an administrative payment of up to 15 percent of the reimbursement amount on each report submitted to BPA for reimbursement. BPA shall, when the report is accepted, pay the administrative allowance amount requested. Administrative payments from BPA shall be paid pursuant to section 7(d) of the body of this Agreement. 11. INVOICINGANDPAYMENT (a) Frequency of Reporting Ashland may submit reports to BPA for Completed Units, but no more often than once per month. BP A shall review the report and pay for those Completed Units accepted by BPA. (b) Final Reporting Ashland shall have until October 31,2007, to submit a final report for deemed Measures that were Completed Units by September 30, 2007. Ashland shall have until November 30,2008, to submit final reports for custom Sub-Projects that were installed and operating by September 30, 2007, provided, Ashland reported such custom Sub-Project to BPA pursuant to section 9(b). (c) Alternative to RTF Reporting Ashland may, only when approved in writing by BPA, submit completed and signed Schedules and custom Sub-Project proposals and Completion Reports directly to BP A as provided in section 7 of the body of this Agreement. If this alternative is approved by BPA, BPA may impose additional requirements with the written approval. 06ES-I0738, Ashland Exhibit A, Project 2: C&ISO 6of7 12. CONSUMER-TRIGGERED STRANDED CONSERVATION INVESTMENTS (a) Ashland shall repay BPA's conservation investment if the BPA payment to Ashland to achieve any portion of Energy Savings associated with a deemed Measures or custom Sub-Project was a single payment of 100,000 dollars or greater for Completed Units installed in a Consumer's facility. The repayment shall be due to BPA when the Consumer: (1) stops purchasing all of its electricity from Ashland, but (2) continues to operate with electricity provided by any other entity, including energy the Consumer produces from its own generation resources, and (b) Ashland shall notify BPA when a repayment is due BPA pursuant to section 12(a). BPA shall calculate the repayment amount using the formula in section 13(e) of the body of this Agreement. (c) The repayment shall be made within sixty business days of the date the Consumer ceased purchasing all its electricity from Ashland. Ashland shall reference the Agreement number on the repayment document. The repayment shall be remitted by electronic funds transfer to BPA's account or by check to the following address: Bonneville Power Administration P.O. Box 894196 Los Angeles, CA 90189-4196 (BUD-PNK-http://bpaweb/orgslorgs%20main/energyefficiency/Contracts \Ashland-CISO.xml) 09/15/06 06ES-10738, Ashland Exhibit A, Project 2: C&ISO 70f7 C&ISO - Commercial Measures Schedule Title: Address: Project #: Invoice #: Category Number of Units Commercial Measures Measure Description Reimbursement per Unit Total Reimburse ment for Measures (a*b) CommPITial Building !\Ipasul'ps a, $17.00 b, 1. Network Computer Power Management. Pre-rinse Spray Wash Valves. Commercial Clothes Washers, MEF 1.42 - 1.79, electric DWH and electric dryer, purchased prior to 2/1/07. Commercial Clothes Washers, MEF 1.42 - 1.79, all other combinations, purchased prior to 2/1/07. Commercial Clothes Washers, MEF 1.80 and higher, electric DWH and electric dryer, purchased prior to 2/1/07. Commercial Clothes Washers, MEF 1.80 and higher, all other combinations, purchased prior to 2/1/07. Energy Star Commercial Clothes Washers purchase 2/1/07 or later with electric DWH and electric dryer. Energy Star Commercial Clothes Washers purchase 2/1/07, all other combinations. $75.00 2. 3. $150.00 $90.00 4. $45.00 5. $180.00 6. $75.00 7. $180.00 8. A. Reimbursement Total: B. _ % Admin of A. above (not to exceed 15%): C. Reimbursement (A + B): Useful Information 1. Has the installed equipment met the Project requirements and specifications? 2. Are the Measures above properly installed and operating? 3. Have invoices been labeled with the unique identifying number from the RTF reporting system? Completed By: (Yes/No) ~ (Yes/No) (Yes/No) Date: (BUD-PNK-http://bpaweb/orgs/orgs%20main/energyefficiency/Contracts \ Ashland-CISO .xml) 09/15/06 06ES-10738, Ashland Exhibit A, Project 2 -I. lofl Exhibit A PROJECTS, ENERGY SAVINGS, AND PROJECT BUDGETS PROJECT 3, RESIDENTIAL STANDARD OFFER 1. PROJECT 3 DESCRIPTION The Residential Standard Offer (ResSO) provides reimbursements for custom Sub- Projectsl and deemed residential Measures. Ashland shall implement this Project in accordance with the terms of this ResSO to receive reimbursement from BP A. 2. PROJECT REQUIREMENTS (a) Ashland may implement this Project using Ashland's staff or contractors to provide the services necessary to install the Measures. (b) Only Units installed in residential homes and new multifamily buildings three stories or less that are served by Ashland are eligible for reimbursements under this Project. (c) BPA shall only pay for new equipment. (d) Except for Units that were Work in Progress at the time this Agreement replaced Purchase of Conservation Agreement No. OlES-I0379, BPA shall not pay reimbursements for equipment purchased prior to execution of this ResSO or for equipment purchased prior to BPA's written approval of the measurement and verification plan for a custom Sub-Project. (e) All Measures shall be Completed Units prior to requesting reimbursement from BPA. (f) Ashland shall retain all supporting documents for deemed Measures and custom Sub-Projects as required in section 8 of the body of this Agreement. (g) BPA shall only pay for Completed Units that are cost-effective. Cost-effective Units are those that have a Total Resource Cost Benefit/Cost ratio equal to or greater than 1 in the RTF system. (h) Ashland shall use the Custom Project Proposal Template in the RTF system to propose custom Sub-Projects pursuant to section 3 of this Project. Custom Sub-Project proposals and Completion Reports shall be submitted to BPA through the RTF system. 1 "Custom Sub-Projects" shall be defined as a Measure or group of Measures submitted to BPA by Ashland for evaluation in accordance with this ResSO. The term "Project" refers to the entire ResSO and includes all "custom Sub-Projects" accepted by BPA for payment pursuant to this Project. 06ES-I0738, Ashland lof9 I (i) BPA shall make the final decision as to whether any Measure or custom Sub- Project proposal meets the eligibility requirements and criteria stated in this Project and whether or not to accept the measurement and verification plan(s) in custom Sub-Project proposals. (j) The specifications stated in the RTF system for all Measures in this ResSO are hereby incorporated by reference into this Project. All Measures reported to BP A for reimbursement shall be installed pursuant to the specifications required for that Measure. 3. REQumEMENTS FOR CUSTOM SUB-PROJECTS Ashland shall follow the procedures below for custom Sub-Projects for new low-rise multifamily buildings with five or more units, that are three stories or less and are not built to the prescriptive Multifamily New Construction Low Rise Specifications. BPA shall evaluate all custom Sub-Project proposals using the information provided by Ashland in the Custom Project Proposal Template. (a) Custom Sub-Project Proposal Submission Process (1) Ashland shall submit a completed Custom Project Proposal Template for each custom Sub-Project to BPA. (2) Upon initial review of Ashland's custom Sub-Project proposal, BPA may request additional information or clarification of information given. BP A may suggest changes to the measurement and verification methodology proposed prior to making its determination to accept or reject the custom Sub-Project proposed. (3) Upon completion of the review of a custom Sub-Project proposal, BPA shall provide Ashland written notice either accepting or rejecting the measurement and verification plan for the custom Sub-Project proposed. BP A may also provide comments on those custom Sub- Projects with estimated Energy Savings greater than 200,000 kWhs. (4) Once Ashland receives BPA's written acceptance, then Ashland may initiate the purchase and installation of the custom Sub-Project approved by BPA. (5) The Parties agree that BPA's written acceptance of a submitted custom Sub-Project proposal incorporates such custom Sub-Project in to this Project. (b) Completion Report for Custom Sub-Projects Ashland shall submit a written Completion Report for all custom Sub-Projects added pursuant to section 3(a)(5). (1) Elements of Completion Report The Completion Report shall include, but is not limited to, the following: 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 2of9 - I (A) a description of the equipment installed and how this differs, if at all, from the description provided in the original custom Sub- Project proposal; (B) the actual Energy Savings as determined from the results of the measurement and verification plan agreed to by BP A pursuant to section 3(a)(5), and information on the methodology, assumptions, and formulas used; (C) the actual total custom Sub-Project costs, including, but not limited to, auditing and engineering costs, equipment costs, equipment installation and removal costs; instrumentation and data collection costs, cost of permits, inspection fees and, if applicable, taxes; (D). any changes in equipment installation or operations from what was described in the custom Sub-Project proposal; and (E) the date on which the custom Sub-Project was properly installed and made fully operational, and, when applicable, commissioned in accordance with the manufacturer's requirements and specifications for normal operations. (2) Additional Information After initial review of the Completion Report, and after consultation with Ashland, BPA may ask for additional information pertaining to the custom Sub-Project. IfBPA determines that the Completion Report is still incomplete, BPA shall request Ashland revise and resubmit the Completion Report based on comments received from BPA. (3) Notification by BPA Upon completing its review of the Completion Report, BPA shall provide written notice to Ashland either accepting or rejecting the Completion Report. 4. ENERGY SAVINGS REQUIREMENTS FOR CUSTOM SUB-PROJECTS (a) Ashland shall use the measurement and verification plan approved by BPA to determine the actual Energy Savings for each custom Sub-Project accepted by BPA pursuant to section 3(a)(5). (b) BPA may request and Ashland shall make arrangements for site visits by BP A representatives, for review of the measurement and verification methodology proposed in a custom Sub-Project proposal, or as part of BPA's review of a Completion Report. 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 3of9 5. PAYMENT FOR CUSTOM SUB-PROJECTS BPA shall reimburse Ashland for custom Sub-Projects incorporated into this Project pursuant to section 3(a)(5) when the Completion Report is accepted by BPA pursuant to section 4(b)(3). BPA's reimbursement amount shall be the lesser of $0.30 per first year kWh saved or 70 percent of the actual total installation cost of the custom Sub-Project. 6. REIMBURSEMENTS AND REPORTING OF DEEMED MEASURES BPA's reimbursements for deemed Measures are shown in the ResSO Residential Measures Schedule (Schedule). (a) Ashland shall verify that all Measures submitted for reimbursement have been installed, are operating correctly and meet the specifications for the Measure installed. (b) Ashland shall enter Completed Unit information for any Measure eligible for reimbursement under this Project into the RTF system, label all supporting documents with the unique identifying reporting system number from the report and submit the report to BP A. 7. REQUffiEMENTS FOR DEEMED MEASURES Ashland may offer programs to their Consumers for any or all the Measures shown in the Schedule. In addition to the specifications for each Measure in the RTF system, Ashland shall follow the procedures and requirements below to receive reimbursement from BP A. (a) Compact Fluorescent Lighting Compact Florescent Lighting may be screw-in or pin-based and shall be Energy Star, 5 Watts or greater. BPA's payment shall be per socket. (b) Heat Pumps Heat pumps shall meet a minimum performance standard of SEER 14, HSPF of 8.5 or greater, be commissioned in accordance with the Performance Tested Comfort Systems (PTCS) specifications and have the duct system PTCS Certified if the ducts are outside the conditioned space. Reimbursements are based upon climate zone and the proportion of ducting in conditioned spaces. BPA's reimbursement shall be more for duct systems that have 75 percent or more of the ductwork outside of the conditioned space. Ashland may claim two incentives for non-manufactured homes 4500 square foot or larger, provided two heat pumps or one unit properly sized for the home is installed. Reimbursements from BPA shall be based upon the table below. 06ES-10738, Ashland Exhibit A, Project 3: ResSO 4of9 75% or more 75% or more of Less than 75% Less than 75% of ducts ducts outside of ducts outside of ducts outside outside of of Conditioned of Conditioned of Conditioned Conditioned Space Space Space Soace Zones 1 8.5 HSPF 9.5 HSPF 8.5 HSPF 9.5 HSPF Efficiency Heating 1, $615 $740 $270 I $380 CoolinJ't 1 (c) Weatherization Measures Site-built and manufactured homes may be insulated, have windows replaced or air sealed. Weatherization Measures installed in site built or manufactured homes shall meet the requirements in the RTF system. BPA's reimbursement shall be per kWh. (d) Electric Water Heaters Electric water heaters reported for reimbursement from BP A shall be 50 gallons or larger. BPA's reimbursement shall be based upon RTF savings for the size and warranty obtained for the water heater installed. (e) New Site-Built Homes New site built homes shall be constructed to meet Energy Star Homes Northwest Specifications and Technical requirements for site built single- family homes. Energy Star homes may be constructed with electric or non- electric fuel sources, however, BPA's reimbursements shall only be for electrical energy efficiency improvements related to heat pump or zonal heating installations. Each Energy Star home completed shall be certified by the appropriate State Certification Organization to receive reimbursement from BP A. Reimbursements from BP A shall be based upon the table below 75% or more of Less than 75% of Zonal Heating ducts outside of ducts outside of Conditioned Space Conditioned Space $1,140 $ 600 $ 1,170 (0 New Super Good Cents Manufactured Homes New Super Good Cents manufactured homes shall be new and sited in Ashland's service area. BPA's reimbursement shall be based upon the heating zone where the new Super Good Cents manufactured home is sited. (g) Geothermal Heat Pumps Reimbursements for geothermal heat pumps from BPA shall be based upon the table below. 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 5of9 -, Heating Requirements Reimbursement Zone Amount HZ 1: Site-built homes constructed before $2,400 1993, when there is: (a) a forced air furnace, (b) a crawl space, and (c) there is a cooling load (h) Energy Star Clothes Washers Reimbursements for Energy Star Clothes Washers shall be based upon the Modified Energy Factor (ME F) through December 31,2006 and shall be based upon the fuel type used to heat water starting January 1, 2007. BPA's reimbursement shall be based on the table below. Reimbursements through December 31,2006 Electric water heating, MEF below 1.80 $60 Electric water heating, MEF 1.80 and $100 above Reimbursements starting January 1, 2007 Electric water heating, MEF 1.72 and $70 above. Non-electric water heating. MEF 1.72 $25 and above. (i) Energy Star Dishwashers BP A shall pay reimbursements for Energy Star dishwashers installed in residential homes in Ashland's service area. (j) Performance Tested Duct Sealing in Existing Manufactured Homes BP A shall provide reimbursements for Performance Tested Duct Sealing in Manufactured homes in Ashland's service area. (k) Performance Tested Duct Sealing in Existing Site Built Homes BP A shall provide reimbursements for Performance Tested Duct Sealing in site built homes in Ashland's service area. (1) Residential Refrigerator Decommissioning BP A shall provide reimbursements for residential refrigerators decommissioned from Ashland's service area. (m) Multifamily Showerheads and Aerators BP A shall provide reimbursements for showerheads and aerators installed in Ashland's service area. All showerheads and the kitchen aerator shall be replaced to be eligible for reimbursement for this Measure. BPA's reimbursement shall be per multifamily unit. 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 6of9 --, replaced to be eligible for reimbursement for this Measure. BPA's reimbursement shall be per multifamily unit. (n) Low Rise Multifamily New Construction BPA shall provide reimbursements for new low-rise multifamily buildings with five or more units, that are three stories or less and are built to the prescriptive Multifamily New Construction Low Rise Specifications. BPA's reimbursements shall be per unit. (0) Line Voltage Electronic Thermostats BPA shall provide reimbursements for line voltage electronic thermostats in single-family homes provided all existing bi-medal thermostats are replaced. BPA's reimbursement shall be per home. (p) Energy Star Refrigerators BPA shall provide reimbursements for Energy Star refrigerators 7.75 cubic feet or larger installed in residential homes in Ashland's service area. 8. MEASURE LIFE The Measure Life for all Measures under this Project is 10 years unless otherwise stated by notice to Ashland. If a stranded investment or reimbursement charge is calculated pursuant to section 13(e) of the body of this Agreement, the Measure life provided in this section shall be used for the calculation. 9. IMPLEMENTATION PERIOD This Project may be implemented from the execution date through September 30, 2007, provided that all deemed Measures installed under this Project are Completed Units by this date. For custom Sub-Projects: (a) Ashland may complete measurement and verification activities for custom Sub-Projects accepted pursuant to section 3(a)(5), provided such custom Sub- Projects are installed and operating by September 30, 2007. Completion Report(s) may be submitted after September 30,2007, provided they are submitted no later that September 30, 2008. (b) Ashland shall provide, by October 15, 2007, BPA with a list of those custom Sub-Projects accepted pursuant to section 3(a)(5) that were installed and operating by September 30,2007, but for which the Completion Report is yet to be submitted. 10. IMPLEMENTATION BUDGET (a) Implementation Budget Amount BP A shall provide 50,000 dollars for implementation of this Project. Ashland may invoice BPA up to this total Implementation Budget for Completed Units installed pursuant to this Project. 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 7of9 r (b) Request for Additional Implementation Budget If Ashland expends this Implementation Budget amount prior to September 30, 2007, Ashland may request additional Implementation Budget. BP A shall review the request and will provide notice accepting or rejecting the request. IfBPA approves the addition of an amount to the Implementation Budget for this Project, BPA will revise this Project and send the revised Project to Ashland. (c) Implementation Budget Review BPA shall periodically review Ashland's activities and implementation under this Project. In consultation with Ashland and after providing three months written notice, BPA may reduce the Implementation Budget. IfBPA reduces the Implementation Budget for this Project, BP A will revise this Project and send the revised Project to Ashland. BPA shall take into account all factors that Ashland believes will affect future rates of expenditure. If requested by BP A, Ashland shall provide a list of potential deemed Measures and custom Sub-Project proposals to BPA. BPA shall not reduce the Implementation Budget below: (1) the level needed to meet all the estimated costs of deemed Measures and custom Sub-Projects either approved by BPA, or custom Sub- Project Proposals that are under review by BPA; and (2) the level needed to cover the estimated cost associated with all deemed Measures and custom Sub-Project proposals that have been presented to Ashland by any Consumer, and that, in the opinion of Ashland have a high likelihood of gaining Ashland and BPA approval. (d) Administrative Allowance Ashland may choose to receive an administrative payment of up to 15 percent of the total reimbursement amount on each report submitted to BP A for reimbursement. BPA shall, when the report is accepted, pay the administrative allowance amount requested. Administrative payments from BPA shall be paid pursuant to section 7(d) of the body of this Agreement. 11. INVOICING AND PAYMENT (a) Frequency of Reporting Ashland may submit reports to BPA for Completed Units, but no more often than once per month. BP A shall review the report and pay for those Completed Units accepted by BPA. (b) Final Reporting Ashland shall have until October 31,2007, to submit a final report for deemed Measures that were Completed Units by September 30, 2007. Ashland shall have until November 30, 2008, to submit final reports for custom Sub-Projects that were installed and operating by September 30, 2007, provided, Ashland reported such custom Sub-Project to BPA pursuant to section 9(b). 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 8of9 (c) Alternative to RTF Reporting Ashland may, only when approved in writing by BPA, submit completed and signed Schedules and custom Sub-Project proposals and Completion Reports directly to BP A as provided in section 7 of the body of this Agreement. If this alternative is approved by BPA, BPA may impose additional requirements with the written approval. 12. CONSUMER-TRIGGERED STRANDED CONSERVATION INVESTMENTS (a) Ashland shall repay BPA's conservation investment if the BPA payment to Ashland to achieve any portion of Energy Savings associated with a deemed Measures or custom Sub-Project was a single payment of 100,000 dollars or greater for Completed Units installed in a Consumer's facility. The repayment shall be due to BPA when the Consumer: (1) stops purchasing all of its electricity from Ashland, but (2) continues to operate with electricity provided by any other entity, including energy the Consumer produces from its own generation resources, and (b) Ashland shall notify BPA when a repayment is due BPA pursuant to section 13(a). BPA shall calculate the repayment amount using the formula in section 13(e) of the body of this Agreement. (c) The repayment shall be made within sixty business days of the date the Consumer ceased purchasing all its electricity from Ashland. Ashland shall reference the Agreement number on the repayment document. The repayment shall be remitted by electronic funds transfer to BPA's account or by check to the following-address: Bonneville Power Administration P.O. Box 894196 Los Angeles, CA 90189-4196 (BUD-PNK-http://bpaweblorgslorgs%20mainlenergyefficiency/Contracts \Ashland-RESO.xml) 09/15/06 06ES-I0738, Ashland Exhibit A, Project 3: ResSO 9of9 --T ResSO - Residential Measures Schedule Title: Address: Project #: Invoice #: Category 1. Compact Fluorescent Lighting. 2. Heat Pumps, HSPF 8.5, 75% or more outside conditioned spaces 3. Heat Pumps, HSPF 9.5, 75% or more outside conditioned spaces 4. Heat Pumps, HSPF 8.5, less than 75% outside conditioned spaces 5. Heat Pumps, HSPF 9.5, less than 75% outside conditioned spaces 6. Weatherization Measures, insulation Residential 7. Weatherization Measures, windows Measures 8. Weatherization Measures, air sealing 9. Water Heaters with warranty less than 20 years. 10. Water Heaters with warranty 20 years or more. 11. Energy Star Home w/Heat Pump, 75% or more outside conditioned spaces 12. Energy Star Home w/Heat Pump, less than 75% outside conditioned spaces 13. Energy Star Home w/Zonal Heating 14. New Super Good Cents Manufactured Homes 15. Geothermal Heat Pump Measure Description Residential Measures Reimbursement Per Unit No. of Units Total $ by Measure (a*b) a. $2.50 per socket $615 per heat pump, hlcl b. 06ES-10738, Ashland Exhibit A, Project 3 - --I $740 per heat pump, hlcl $270 per heat pump, hlcl $380 per heat pump, hlcl $0.30 per kWh $0.30 per kWh $0.30 per kWh $0.25 per kWh $0.35 per kWh $1,140 per heat pump, h_cl $600 per heat pump, h_cl $1,170 per home $850 per home $2,400 per home 10f2 ResSO - Residential Measures Schedule (continued) Title: Address: Project #: Invoice #: Category Measure Description Reimbursement Per Unit Total $ by Measure (a*b) Residential Measures No. of Units Hesidential Measures a. b. 16. Energy Star Clothes Washers Thru 12/31/06, MEF 1.8 and lower Thru 12/31/06, MEF 1.8 and higher After 12/31/06, Electric Water Heat After 12/31/06, non-Electric Water Heat Energy Star Dish Washers PTCS in Manufactured Homes PTCS in Site Built Homes Refrigerator Decommissioning Multifamily Showerheads and Aerators Low Rise Multifamily New Construction Line Voltage Electronic Thermostat Energy Star Refrigerators 7.75 cubic feet and larger $60 per unit $100 per unit $70 per unit $25 per unit 17. 18. 19. 20. 21. $25 per unit $280 per unit $400 per unit $85 per unit $12 per unit 22. $40 per unit 23. 24. $80 per home $25 per unit Useful Information A. Reimbursement Total: B. _% Admin of A. above (not to exceed 15%): C. Reimbursement (A + B): 1. 2. 3. Has the installed equipment met the Project requirements and specifications? Are the Measures listed properly installed and operating? Have invoice(s) been labeled with the unique identifying number from the RTF reporting system? (Yes/No) (Yes/No) (Yes/No) Completed By: Date: (BUD-PNK-http://bpaweblorgslorgs%20main/energyefficiency/Contracts \Ashland-RESO.xml) 09/15/06 06ES-I0738, Ashland Exhibit A, Project 3 2of2 --I