Developer Connections Spring 2020
In January 2020, we released our new construction incentive and design assistance program, Integrated Design Solutions (IDS).When participating early enough with the design, both the owner and design team could be eligible for the electrical energy efficiency incentives and beneficial electrification (including energy recovery) incentives, as well as third party design assistance from SMUD. It's the first new construction incentive program of its kind to offer electrification incentives.
Sacramento State Ernest E. Tschannen Science Complex
Benefits if using our IDS program include:
- More efficient building that maximizes on energy recovery.
- Reduced onsite combustion from natural gas, which in turn improves local air quality.
- A potential reduction on utility infrastructure costs.
- Design assistance for the design team from SMUD to discover other energy recovery technologies and strategies to further optimize the building.
The IDS program requires early design involvement and offers two incentive approaches: the modeled incentive approach and equipment menu approach.
For the more lucrative modeled incentive approach, a Letter of Interest (one-page application) is required from the owner prior to 100% design development. An IDS staff member needs to meet with the design team prior to 50% schematic design for the design team to receive an incentive. The modeled approach is well suited for larger, more complex projects, offering incentives up to $150,000 for the owner and incentives up to $50,000 for the design team.
For the equipment menu approach, the owner needs to submit a Letter of Interest by 100% construction documents. The equipment menu applies is well suited for smaller, less complex projects. The equipment menu offers incentives up to $50,000 for the owner. For both approaches that are all-electric designs, while funding lasts, a beneficial electrification incentive is offered at $1 per square foot up to $25,000.
More information on the program can be found in the Integrated Design Solutions Procedures Manual.
Rancho Seco Solar development
Earlier this year, SMUD’s revised Neighborhood SolarShares application was reviewed and accepted at the California Energy Commission (CEC) Business Meeting. The Commissioners voted 5-0 in favor of SMUD’s application.
This offering will help residential developments meet new state building standards that require all new low-rise (3 stories or less) residential homes in California to be equipped with a solar power system or participate in a community solar program. Our program is intended to serve as an alternative approach for complying with the onsite photovoltaic (PV) system requirements in the 2019 Building Energy Efficiency Standards (2019 Energy Code).
Previously at the CEC's November 2019 meeting, Commissioners voted to delay their decision. Since then, we worked to clarify and enhance many areas of our proposal offering. The program includes a 20-year agreement with the developer where SMUD provides solar energy to customers from solar arrays connected to the grid. Occupants of the homes must participate in the program until the 20-year term is over and will receive an estimated annual net benefit of about $20 a year.
In 2018, SMUD began the process of seeking approval from the California Energy Commission (CEC) on our application to use our Neighborhood Solar Shares program as an option for developers and builders in our service territory to meet the California solar mandate. Since that time, we have worked closely with community partners, the BIA, local developers and builders in getting support and ultimate approval for the program.
To kick-off the session, Director of SMUD’s Commercial Development program Rob Lechner welcomed the group and gave an overview of how SMUD provides valuable resources to meet the needs of our local developer, home builder and broker community. The Commercial Development Team then provided a downtown Sacramento walking tour of planned, under construction or recently completed development projects along the K Street corridor. In total, they heard from seven developers and ended the day with an insider's look at the Golden1 Center.
The tour started at the City of Sacramento Convention Center and Community Theater project that's currently under construction. The City of Sacramento provided an overview of the project components, the energy delivery aspects and schedule for completion. Next, participants got an overview of the upcoming Anthem Properties project at Cathedral Square. Brendan Leonard, from Anthem Properties, provided an update on the status of the project located on 11th and J streets and discussed the challenges in developing in urban infill locations.
Nikky Mohanna with Mohanna Development provided an early peak of the 10th and K project, which will feature a mix of hotel, apartments and ground floor retail. Mohanna shared the vision for the project, timing and coordination with SMUD to ensure there is adequate capacity to serve the project. Bay Miry from Miry Development and Shahriar Nejad, CFY Development provided an overview of the development projects between the 700 and 800 block of K Street. Both developers shared with the WEI group the vision for the two blocks, recently completed development projects and the boost the Golden1 Center has had on the area.
Representatives from the Downtown Sacramento Partnership and City of Sacramento Economic Development Department discussed the development trends in Downtown Sacramento and shared a vision for the Central City. The last stop was a tour of DOCO and Golden1 Center. The Sacramento Kings hosted the WEI emerging leaders and provided an in-depth tour of the building, giving an overview of the state-of-the-art features of the arena and shared how it compares to other buildings across the country.
In all, the WEI emerging leaders were given a unique picture of development in downtown Sacramento and learned all about how SMUD plays a vital role in ensuring these projects obtain the SMUD power they need, when they need it.
Transforming How We Build: ZERO Code for California
Thursday, April 16, 2020 | 11:30 a.m. – 1 p.m. | Skype Meeting
Go Electric Incentives for Businesses
Wednesday, May 6, 2020 | 9 a.m. – noon | Skype Meeting
Daylighting – the Forgotten Design Element
Thursday, May 14, 2020 | 10 a.m. – 11:30 a.m. | Skype Meeting
Lighting Lessons Learned: Getting Building to Really Work
Thursday, May 14, 2020 | 1 p.m. – 2:30 p.m. | Skype Meeting
Transforming How we Build: Toward Zero Emissions Housing Design
Thursday, May 21, 2020 | 11:30 a.m. – 1 p.m. | SMUD Headquarters Building