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The purpose of these guidelines is to define procedures relating to the Cool Switch Low Impact Refrigerant Program (Cool Switch). The goal in establishing these guidelines is to provide a streamlined procedure for administering and distributing program funds.
These guidelines provide rules of practice and procedures for grant applications and disbursement of grants for low-impact refrigerant projects in Delaware.
1.0 Purpose
2.0 Appropriations
4.0 Eligibility
5.0 Program Limits
6.0 General Application Process
7.0 Rebate Pathways
8.0 Other DCCE Energy Program Offerings
Appendix A: GWP Table
The purpose of these guidelines is to define procedures relating to the Cool Switch Low Impact Refrigerant Program (Cool Switch). Cool Switch promotes the use of refrigerants with a global warming potential (GWP) lower than 1,500, unless specifically prohibited by the Division of Air Quality’s HFC regulations, by Delaware non-residential, commercial, and industrial customers. Applicants should keep abreast of regulations currently under development that may affect the continued use of certain HFCs in Delaware. For more information, please visit https://dnrec.delaware.gov/air/permitting/under-development/ or https://regulations.delaware.gov/AdminCode/title7/1000/1100/1151.shtml.
The goal in establishing these guidelines is to provide a streamlined procedure for administering the Cool Switch program in an efficient manner. These guidelines provide rules of practice and procedures for grant applications and disbursement of grants for energy efficiency projects in Delaware.
DCCE is the designated recipient and administrator of several funding streams, each having specific disbursement requirements and customer eligibility. Cool Switch is currently funded by the Regional Greenhouse Gas Initiative (RGGI).
RGGI is a cooperative, market-based program that aims to cap and reduce carbon dioxide (CO2) emissions from power plants within twelve participating Northeast and Mid-Atlantic states, including Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia. DCCE receives RGGI funding from the state selling emission allowances through auctions to be used for investments in energy efficiency. DCCE has elected to utilize a portion of the RGGI proceeds to fund Cool Switch. These funds are subject to change due to auction results which may result in changes to program eligibility.
The source of funding is limited and should be considered one-time disbursements. The applicant shall follow program guidelines to ensure reservation of funds prior to any equipment purchase or installing a qualifying system. DCCE will provide notice if program funds are close to being exhausted for the fiscal year.
All grants are on a first-come, first-served basis. DCCE reserves the right to suspend, terminate, or modify the program at any time. DCCE may change program requirements, eligible measures, or grant amounts at any time. DCCE is not obligated to approve any submitted application that may result in exceeding the program budget. In the event of a program change, submitted applications will be processed according to program terms at the time of application pre-approval. The applicant or contractor on behalf of the applicant is fully responsible for providing a complete application and supporting documentation. Incomplete or missing information will delay and/or cancel processing of an application.
All equipment must be new, purchased, and installed before the grant payment can be issued. DCCE does not endorse any particular contractor, manufacturer, product, or system in promoting this program.
The applicant agrees to allow DCCE or its program evaluator to have access to the awarded facility’s energy use data for a period of at least two years following installation of the incentivized measures. Additionally, applicant agrees to DCCE publicly publishing awardee details such as but not limited to: total grant award amount, facility address, total project cost, fuel type, energy provider, fund appropriation, date completed, project type, dollar savings per year, and applicant approved facility photographs.
The Cool Switch Program is available to non-residential entities that use at least 50 lbs of refrigerant in their current facility(ies). Usage may be based on one facility or multiple facilities in aggregate. Installed refrigerants must have a GWP of less than 1,500 and cannot be on the Division of Air Quality’s prohibited HFC list. Applicants should keep abreast of regulations currently under development that may affect the use of certain HFCs in Delaware.
All Cool Switch applicants must attest to obtainment of all relevant permits from DCCE and all other necessary state, local, regional, and federal permits during the application process.
Installing contractors, and anyone acting under its direction, shall at its own expense procure and maintain in full force at all times Commercial General Liability Insurance with a bodily injury and property damage combined single limit of liability of at least one million dollars ($1,000,000) for any occurrence.
Installing contractors shall maintain appropriate education and licenses, industry certificates, and accreditations to ensure the program preserves the end-users’ expectation of professional work. The installing contractor must have an active Delaware business license, Delaware trade specific license, certificate of general liability insurance and training certificates. Where industry certification programs have been promulgated, program applicants are encouraged to use industry certified contractors.
Additional resources to provide or receive licensure include:
All qualifying systems must be installed in accordance with the standards and specifications of the manufacturers of the components in the system, in compliance with all federal, state, and local safety, building, and environmental codes and ordinances, as well as these guidelines. Where discrepancies, if any, exist with these guidelines and local codes, local codes shall govern.
With regard to Delaware’s current building energy code, qualifying systems must exceed minimum code requirements in order to be considered for energy efficiency grant funds. For more on Delaware’s energy codes, please see de.gov/energycodes.
All equipment must be tested to Underwriters Laboratory (“UL”) standards, be UL listed and installed per manufacturer’s instructions.
The customer and contractor shall appropriately retire and dispose of any product replaced as a result of a Cool Switch program grant. The customer is responsible for the proper disposal or recycling of any waste generated as a result of the project.
The applicant is responsible for any tax liability imposed as a result of the payment of grants. Applicants are advised to contact a tax professional for more information.
Individual grant awards will not exceed $250,000 per individual address per calendar year without written approval from the Division Director. The grant for a project will be paid at a rate of $25 per avoided metric ton of CO2-equivalent emissions. DCCE reserves sole discretion to adjust program grant caps. Particular consideration will be placed on organizations that support DCCE’s commitment to helping vital, yet vulnerable sectors of the community, including: minority, women, and veteran owned businesses; small businesses (defined by the Delaware Dept. of Small Business as 100 employees or less); nonprofit organizations; educational institutions; state agencies; and local governments. To ensure availability, funding must be reserved prior to purchasing any equipment or beginning an audit or energy study.
The applicant, or contractor acting on behalf of the applicant, should confirm that the proposed Cool Switch project qualifies for a grant based on the program requirements. Then, submit a completed and signed Low GWP Existing System Retrofit Grant application form. This should include copies of the manufacturer’s technical specification sheets (cut sheets) for the refrigerant and materials to be purchased. After an application is received, it is classified as “pending status”, and will expire after 3 months if any missing documentation is not provided.
All projects require pre-approval prior to any refrigerant or equipment purchase, or any services completed to ensure that the proposed project is eligible for grant funds and to reserve eligible funds. After receipt of the completed application and all required supplementary documentation, DCCE will evaluate the project for consideration of project pre-approval. The contractor and customer are fully responsible for ensuring that all forms and documentation have been supplied and the system meets all program requirements. If the requirements have been successfully met, a pre-approval letter will be issued by DCCE to the applicant. Once the grant is pre-approved, the applicant has 12 months to complete a retrofit project or 24 months to complete a new construction project or the application will be considered expired. Expired applications are considered closed, and a new application is needed if the project is restarted. Upon pre-approval, new refrigerant, and equipment if applicable must be purchased and installed before the grant payment can be issued.
All applications are subject to pre-installation and/or post-installation inspections at the discretion of DCCE. All customers agree to allow access to proposed and installed refrigerants and equipment for the purposes of inspection and verification. If DCCE determines that the customer eligibility, proposed equipment or installed equipment does not meet the program’s criteria, DCCE may withhold payment of the grant amount and/or require changes before issuing payment.
After the applicant receives pre-approval and completes the installation, the customer or contractor performing services on behalf of the customer must provide copies of all itemized invoices. Invoices, and other documentation as necessary, must verify the costs of purchasing and installing all qualifying equipment and refrigerants, including material and installation costs. Quotes cannot be accepted. Itemized invoices are required, and the applicant must highlight any changes in the project scope on those invoices from the proposed quote, which may result in an adjustment of the approved grant amount. Proof of payment must be submitted prior to grant payment being issued.
Additionally, applicants are required to register as a supplier with the State of Delaware and fill out the DCCE eSupplier Information Sheet prior to final approval document submittal. The eSupplier Information Sheet, provided during pre-approval, should accurately match the information as it was entered in the eSupplier Portal. Supplier ID number, name of the payment recipient, and mailing address provided on the eSupplier Information Sheet will be confirmed against original project application prior to final payment review.
If your business has previously registered and has an existing supplier ID, you will not be able to register again under the same tax ID. The business contact on file is required to retrieve an existing supplier ID number. For eSupplier portal issues contact FSF_Supplier_Maintenance@delaware.gov or (302) 672-5000.
Once the proposed measure(s) has been successfully installed, final approval is required from DCCE prior to grant payment being issued. This ensures that, if the installation costs associated with the project change during construction, the final rebate award will be adjusted to reflect said changes. Upon receiving final approval, DCCE will send a letter notifying the applicant or contractor of payment approval before putting in a request for payment. Rebate payments should be received approximately 10-12 weeks after the date of final approval.
DCCE may make all applications submitted available to non-state personnel for the sole purpose of assisting in its evaluation of the applications. These individuals will be required to protect the confidentiality of any specifically identified proprietary information obtained as a result of their participation in the evaluation. Proposals submitted may contain trade secrets and/or privileged or confidential commercial or financial information which the applicant does not want to be used or disclosed for any purpose other than evaluation of the application. The use and disclosure of such data may be restricted, provided the applicant follows DCCE’s “Request for Confidentiality” procedure contained in DCCE’s “Freedom of Information Act” or “FOIA” regulation. It is important to understand that this FOIA regulation’s confidentiality procedure is a necessary part of this regulation in that any information submitted to DCCE is subject to public review unless deemed to be confidential by the Secretary in accordance with the criteria and procedures established in the FOIA regulation. The burden lies with the applicant asserting the claim of confidentiality to meet the criteria established in the FOIA regulation.
Should an applicant be denied a grant and disagrees with outcome, the applicant must contact DCCE in writing. DCCE will respond after the determination. Should DCCE deem the application eligible, the application will be processed.
Cool Switch offers two primary rebate pathways to Delaware non-residential entities with existing or new buildings. Both pathways, and their respective offerings, can be paired with other energy efficiency and renewable energy programs that DCCE administers. These include the Energy Efficiency Investment Fund (EEIF) and the Revolving Loan Fund (RLF). For more information on DCCE’s other energy programs, see Section 8
Existing system retrofit projects are appropriate for businesses wishing to replace high GWP refrigerants in existing equipment with low GWP alternatives. High GWP refrigerants are those such as R-22, R-404A and R-407A and others with GWP values greater than or equal to 1,500. Low GWP refrigerants are those such as R-449A, R-448A and others with GWPs less than 1,500. In addition, there are some refrigerants with a GWP lower than 1,500 that are still prohibited: R-365mfc, R-245fa, and R-134a.
7.1.1 Existing System Savings and Grant Calculations
The grant for a project will be paid at a rate of $25 per avoided metric ton of CO2 equivalent emissions. Savings will be calculated using the following formula:
Formula 1. Avoided Emissions of CO2-equivalent GHGs
mtCO2e = Years of Operation * [(GWPb * Chargeb * Leakageb) – (GWPN * ChargeN * LeakageN)]/2,204.6
In the equation above, “GWP” corresponds to refrigerant global warming potential defined as equivalent pounds of CO2 per pound of refrigerant; “charge” corresponds to pounds of refrigerant; “leakage” corresponds to annual estimated percent loss of refrigerant to atmospheric emissions; and the subscripts B and N correspond to baseline and new refrigerant systems, respectively. Pounds of CO2 equivalent emissions are converted to metric tons using a standard conversion factor of 2,204.6 pounds per metric ton. Standard GWP values can be found in Appendix A. For conventional systems, grants will not exceed $250,000 or 25% of the total project cost. For natural refrigerant systems, grants will not exceed $250,000 or 50% of the total project cost, whichever is less.
7.1.2 Existing System Application Requirements
Applications must be completely and accurately submitted before grants can be paid.
Required documentation includes:
Pre-Approval:
Final Approval:
Additional information may be requested upon review of initial proposal as deemed appropriate by DCCE.
New system projects are appropriate for businesses wishing to install a new refrigerant system, either in a newly constructed facility, a facility in which a major renovation is taking place or to replace an existing piece of equipment that has passed its useful lifespan. The new systems pathway encourages participants to install systems that use refrigerants with low GWPs, such as R-449A, R-448A and others, or very low GWP refrigerants such as ammonia and carbon dioxide. New systems must use a refrigerant with a GWP less than 1,500 to be eligible for grants through the Cool Switch program.
7.2.1 New System Savings and Grant Calculations
The grant for a project will be paid at a rate of $25 per avoided metric ton of CO2 equivalent emissions. Savings will be calculated using the following formula:
Formula 1. Avoided Emissions of CO2-equivalent GHGs
mtCO2e = Years of Operation * [(GWPb * Chargeb * Leakageb) – (GWPN * ChargeN * LeakageN)]/2,204.6
In the equation above, “GWP” corresponds to refrigerant global warming potential defined as equivalent pounds of CO2 per pound of refrigerant; “charge” corresponds to pounds of refrigerant; “leakage” corresponds to annual estimated percent loss of refrigerant to atmospheric emissions; and the subscripts B and N correspond to baseline and new refrigerant systems, respectively. Pounds of CO2 equivalent emissions are converted to metric tons using a standard conversion factor of 2,204.6 pounds per metric ton. In cases where the actual existing leakage rate exceeds allowable federal maximums, the federal maximum will be used instead. Standard GWP values can be found in Appendix A. Grants will not exceed $250,000 or 50% of the total project cost, whichever is less.
7.2.2 New System Application Requirements
Applications must be completely and accurately submitted before grants can be paid.
Required documentation includes:
Pre-Approval:
Final Approval:
Additional information may be requested upon review of initial proposal as deemed appropriate by DCCE
DCCE offers a series of energy efficiency and renewable energy programs that can be used to supplement rebates issued through Cool Switch. These include the Energy Efficiency Investment Fund (EEIF) and the Revolving Loan Fund (RLF). A brief description of each program and their respective tie-ins to EEIF are detailed below.
The EEIF program offers grants to helps offset the upfront costs associated with energy-efficient improvements and upgrades to non-residential entities that pay the Public Utility Tax (PUT). Applicants with questions about whether they pay the PUT are encouraged to reach out to the EEIF implementation team prior to submitting an application to confirm eligibility for grant funding. Cool Switch program participants can apply for and receive EEIF grants based on the energy savings associated with Cool Switch projects. Additional information can be found on the EEIF website: de.gov/eeif.
The RLF program offers low-interest loans to any Delaware entity pursuing a qualifying energy project. Financing provided through the RLF can be used to support numerous energy efficiency and renewable energy measures, including equipment retrofits and replacements and rooftop and community solar installations. Borrowers can be from the commercial, industrial, nonprofit, educational, government, agricultural, and institutional sectors. Loan underwriting is conducted in-house, thereby allowing for greater flexibility in loan terms and conditions. Loan approval will not compromise an applicant’s Cool Switch grant, meaning that loans can be used in combination with a rebate to help cover project costs. To apply for a loan, please fill out the following application form.
Related Topics: cfcs, climate change, climate coastal energy, cool switch, emissions, energy, energy efficiency, faq, global warming, guidelines, hfcs, procedures, refridgerant
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