Editor’s note: The following post is written by guest blogger Dave Becattini, Vice President, LifeAire Systems. In September 2022, the Pennsylvania C-PACE program was expanded to include Indoor Air Quality (IAQ) as an eligible measure for C-PACE financing. This piece discusses an important new standard from ASHRAE related to IAQ. PEA is not endorsing or recommending LifeAire or its products.

ASHRAE released Standard 241, its first-ever standard for “Control of Infectious Aerosols.” This standard “establishes minimum requirements to reduce the risk of disease transmission by exposure to infectious aerosols in new buildings, existing buildings, and major renovations.”

The key driver for the development of Standard 241, according to Dr. Bill Banfleth, the Chairman of the ASHRAE committee that created the standard, was “discussion between ASHRAE and the White House COVID-19 Response Team about the need for new and better IAQ (indoor air quality) standards. ASHRAE was encouraged to take the lead in developing a new standard for control of airborne pathogens.” For those less familiar with ASHRAE guidelines, they aren’t mandates but they are generally accepted throughout the U.S. and Canada as the gold standard for HVAC.

This is a particularly important and welcome step forward; having ASHRAE’s recognition of certain key requirements for air cleaning technology, such as single pass pathogen remediation and rigorous third-party testing under conditions similar to where the devices will be used. Single pass means the remediation is virtually instantaneous. Pathogens are killed on the first pass through the HVAC system. Most technologies take 30 – 60 minutes to kill pathogens such as COVID 19 so they allow them to recirculate through the HVAC system multiple times therefore distributing them throughout a building. Single pass effectiveness and real-world testing are essential for ensuring a technology’s effectiveness in the field. And, full disclosure, these elements have been a cornerstone of my company, LifeAire Systems, since our founding over 10 years ago.

Standard 241 also establishes the concept of “Equivalent Clean Airflow” through filtration and/or air cleaners to purify the recirculating air within a facility. This reduces the need to bring in additional outside air which is very energy intensive and costly.

Also of note is the call for previously installed air cleaning systems to comply with the testing requirements of this standard after January 1, 2025. For many, this will prompt a re-examination of their air purification strategies and likely require changes or additions to achieve full compliance. This is welcome news for many facilities exploring how they can build on their existing IAQ strategies or implement a new one to reach the high air purity requirements of Standard 241 for both new and retrofit applications.

These new requirements with more focus on clean airflow are a welcome addition in the post-COVID pandemic era, where air quality and protection from the transmission of airborne diseases has moved into the mainstream and remains a high priority. LifeAire Systems applauds the efforts of ASHRAE in releasing this new standard and supports ASHRAE’s hope for the standard’s future role in helping to save lives and minimize disruption to society of airborne diseases.

About: LifeAire Systems has patented air purification technology. This high-performing technology is proven to effectively eliminate airborne chemical and biological pathogens in a single pass. For more information, please visit LifeAire.com. Dave Becattini can be contacted at dbecattini@lifeairesystems.com.

Philadelphia C-PACE Program Guidelines have been revised effective August 15, 2023. The Program Guidelines and all program resources can be found on the Program Resources page of our website.

Key changes to the Guidelines are outlined in the Comparison of Program Guidelines  document and listed below:

1. September 2022 Addendum integrated into main body of Program Guidelines which contained guidance on implementation of Multifamily properties (5+ units) and IAQ and Resiliency Measures

2. Retroactive Guidelines for Multifamily, IAQ and Resiliency Measures updated to allow up to two-year retroactive period
   1. Complete Final Application must be submitted within 730 days after the completion of the installation/construction as proven by the date on the Certificate of Occupancy or other acceptable construction completion documentation
      
3. Clarification on when C-PACE financing term must begin
   1. The first year of the maximum allowed term (as defined by weighted average useful life (WAUL)) must begin in the first eligible billing year and cannot exceed the lesser of (i) the WAUL or (ii) 30 years

4. Closing related fees updated
   1. Department of Records and Department of Judicial Records fees updated to reflect City fee increases 
   2. Added Program Administrator notary fee of $30

5. Certified Indoor Air Quality Professional (CIAQP) added as IAQ qualified professional credential

This update is for the Philadelphia program only.  If you have a project in another PA county, please contact the SEF team at cpace@thesef.org regarding that county’s program guidelines. 
Questions for the Philadelphia C-PACE team can be sent to cpace@philaenergy.org.

Combined with IRA benefits, commercial solar costs are reduced at least 35-40%.

In June, PECO launched a new solar energy incentive for commercial property owners. This incentive is part of its Act 129 program which incentivizes reduction in electricity use. In this case, the incentive is for production of “behind-the-meter” solar energy. The program provides $0.10 per kWh of energy generated based on the property’s first year of annual solar production, minus any excess kWh that is greater than the kWh demand in the same period. In other words, PECO will provide an incentive on the kWh that commercial properties produce and consume.

We estimate that this incentive will reimburse property owners between 4 -10% of a typical total solar system’s cost, though it will be at least six months before there is actual data from PECO to confirm our estimates. 

This PECO reimbursement, combined with the IRA’s expanded Investment Tax Credit (or Elective Pay for non-tax paying entities) of at least 30%, brings the total cost of commercial solar projects down by 35-40% or more. (More information about the federal tax benefits can be found here).

We looked at two projects recently completed by our Solarize partner, Solar States, to understand the likely benefit this new incentive will provide to these projects. 

Small Scale Solar Project

A small higher education institution outside of Philadelphia recently installed solar panels to power an energy efficiency system within the HVAC system in one of their academic buildings. Solar States estimated that their solar system will generate 14,042 kWh of electricity annually.

System Specs

The university can take advantage of this new incentive from PECO on the solar energy they use, but not on excess electricity that is sent back to the grid. So, if they annually use 12,000 kWh (Scenario 1), they would receive $1,200 from the $0.10 per kWh incentive. They would not receive the incentive on the 2,042 kWh that was sent to the grid in excess. In Scenarios 2 & 3 they would receive $0.10/kWh for all solar generation.

Incentive Earned 

Medium Scale Solar Project

An early childhood education center  will likely receive approximately $32,000 from PECO. The center installed a solar project which Solar States projects to generate 319,400 kWh of electricity annually. 

System Specs

If their energy demand is only 300,000 kWh (Scenario 1), the center would receive $30,000 from the incentive. The excess 19,400 kWh of electricity would be fed back to the grid and the center would not receive the incentive on this energy. In Scenarios 2 & 3 they would receive $0.10/kWh for all solar generation.

Incentive Earned 

As a result of this incentive, commercial property owners can expect to save money on annual electricity costs, shorten payback periods for solar installation, increase property value, and boost their reputation with their business’s commitment to sustainability. 

Have questions about solar for your property? Please email us at solarize@philaenergy.org.

On July 10, 2023, the Philadelphia Energy Authority issued a Request for Proposals (“RFP”) to solicit pricing proposals for technical assistance to support Philadelphia Energy Authority’s (“PEA”)  administration of the Commercial Property-Assessed Clean Energy (“C-PACE”) which includes reviewing certain C-PACE surveys (commercial building improvements for energy efficiency or renewable energy, water conservation, resiliency and/or indoor air quality) and advising PEA about whether they are compliant with C-PACE Program requirements.  Firms may bid to review one or more of the following survey types:

• Energy and water, including Energy Reliability Improvement
• Indoor Air Quality (IAQ)

and/or

• Resiliency (ability of the building to withstand damage from wind, precipitation, flooding, fire, and earthquakes)

All questions regarding this RFP must be submitted by email to info@philaenergy.org with the subject line “Questions – C-PACE Engineering RFP”. No questions will be considered by phone.

Responses to questions received before 5pm on July 20, 2023 will be posted on the RFP page on the PEA website (www.philaenergy.org). Respondents are urged to check the website for the responses to the questions. All responses will be issued by July 26, 2023. Oral responses by any PEA employee or agent of PEA are not binding and shall not in any way be considered as a commitment by PEA. 

Respondents to this RFP must submit an electronic version of all requested documents by email to info@philaenergy.org with the subject “C-PACE Engineering RFP Response – [Firm Name]” no later than 5pm on August 9, 2023. Responses received after the deadline will not be considered. 

Link to RFP

Multifamily Retroactive Program Guidelines Revision

Program Guidelines for C-PACE in Philadelphia and the rest of Pennsylvania counties were updated in September of 2022, incorporating the expansion of C-PACE which included eligibility for multifamily rental properties of 5 or more units as well as resiliency and Indoor Air Quality measures. 

The Program Guidelines issued then and currently in effect in Philadelphia limit retroactive financing as follows:

“Retroactive C-PACE financings for building types and measures made newly eligible through Act 43 must occur after September 6, 2022 (60 days after the Pennsylvania C-PACE Statute was enacted on July 7, 2022) and within 730 days after the completion of the installation/construction (as proven by the date on the Certificate of Occupancy or other acceptable construction completion documentation). Retroactive financing requirements are detailed in Section 11.0 of the September 2022 Philadelphia C-PACE Program Guidelines.” (Addendum Page 3, page 72 of the PDF).  

The Philadelphia C-PACE program will be modifying its Program Guidelines to remove this timing requirement. Instead, all C-PACE eligible projects will be able to use retroactive financing within 730 days after the completion of the installation/construction (as proven by the date on the Certificate of Occupancy or other acceptable construction completion documentation). 

The revised Program Guidelines will most likely be issued in August 2023. At that time, PEA will accept C-PACE pre-applications and final applications for retroactive projects that were completed prior to September 6, 2022.

This change is for the Philadelphia program only.  If you have a project in another PA county, please contact the SEF team at cpace@thesef.org regarding that county’s program guidelines. 

Contact cpace@philaenergy.org for questions about the Philadelphia program.