Custom Frequently Asked Questions

General Program Questions:

How do I know if I am eligible for the Business Custom Incentive Program?

All custom projects must be installed at the site of a current Nicor Gas business customer. Public (taxpayer-funded) entities and Direct Access customers are not eligible for the Business Custom Incentive Program. The Business Custom Incentive Program is limited to projects/measures that are not eligible for rebates under the Nicor Gas Energy Efficiency Program’s Business Rebate Program. Pre-approval for each project is required in order to be eligible. Please see the Program Overview and Requirements section for complete eligibility and Program requirements.

I’ve already received rebates through the Business Rebate Program for other products / equipment in my facility. Am I still eligible for the Custom Program?

Business customers are eligible to receive Custom Program Incentives in addition to rebates through the Business Rebate Program as long as you do not receive two incentives for the same measure, and the total Business Custom Program incentive received per facility/site is not more than $500,000.

Am I liable for taxes on incentives received?

Incentives may be taxable and, if more than $600, will be reported to the IRS unless the incentive payee is exempt. The Nicor Gas Energy Efficiency Program is not responsible for any taxes that may be imposed as a result of Program incentive payments.

I have a custom project involving both natural gas savings and electric savings. Am I eligible for incentives from this Program?

Yes. The Nicor Gas Energy Efficiency Program will only provide incentives on measures providing natural gas savings, and will coordinate with electric utilities offering custom incentives as necessary. Please contact the Program Manager for additional information.

Contractors: Am I able to apply an Instant Discount to the Business Custom Incentive Program?

Yes. Your customer will need to sign Page 4 of the Business Custom Incentive Application in the “Incentive Payment Release Authorization” section to allow the incentive be paid over to you. As the recipient of the rebate payment, you may be responsible for any tax liabilities associated with receiving the incentive. You are required to complete a W-9 form (Page 6 of the application) for tax purposes.

How do I know funding will be available upon project completion? Can I reserve funding?

Project pre-approval is required for incentive eligibility and must be obtained by the applicant. Any action taken prior to receiving written notification of Program pre-approval will void project incentive eligibility. Upon Program pre-approval, the estimated incentive amount will be reserved for the applicant for 90 days (following Program receipt of the applicant’s signed Pre-Approval Notice – Statement of Receipt). Incentive funding availability will be re-evaluated if the Final Application is not received within 90 days. Program pre-approval of a project does not guarantee Program acceptance of the final project installation or incentive values included in the Pre-Approval Application.

Can I get an extension on my incentive reservation beyond the 90 days (following Program receipt of the signed Pre-Approval Notice)?

Incentive funding availability will be re-evaluated if the Final Application is not received within 90 days of statement receipt. Please contact the Program Manager for more information, or if you expect to exceed 90 days for project installation.

Eligibility Questions:

What projects are ineligible for the Business Custom Incentive Program?

Projects that are NOT eligible for an incentive include the following:

Fuel switching (e.g. electric to gas or gas to electric)
Changes in operational and/or maintenance practices or simple control modifications not involving capital costs
Projects involving gas-driven equipment in place of electric equipment (such as a chiller)
Projects that involve peak-shifting (and not therm savings)
Renewable energy projects
Programmable thermostats
Any project or equipment eligible by the Business Rebate Program of the Nicor Gas Energy Efficiency Program
Eligibility is at the sole discretion of the Nicor Gas Energy Efficiency Program.

My project will not be installed and operational by May 31, 2014. Am I still able to receive an incentive?

Projects must be installed and fully operational prior to submitting the Final Application, and the Final Application must be received within 30 days, or by June 15, 2014, whichever comes first. Please contact the Program if your project will not be installed and operational by May 31, 2014 – a new program cycle will likely begin on June 1, 2014, and your project can rollover into the new cycle if available. However, funding after May 31, 2014 is not guaranteed, and the Program will work with you to transition your project if a new Program cycle is available.

I purchase my gas through a third party provider. Am I eligible for the Business Custom Incentive Program?

Customers purchasing gas through a third party are eligible as long as the gas is delivered by Nicor Gas, and the customer can provide a valid Nicor Gas account number.

Application-Specific Questions:

I am a contractor or employee of the applying business. Am I able to apply on behalf of the Nicor Gas Customer/Account Holder?

Those granted authority by the Nicor Gas Customer/Account Holder may submit the Pre-Approval Application on behalf of the customer/account holder. The applicant must sign the bottom of Page 1 to certify they have been given the authority to submit the application. However, the Nicor Gas Customer/Account Holder must sign Page 4 of the Final Application in order for the Final Application to be considered complete and eligible.

How do I estimate natural gas savings for my project?

Applicants must use industry-accepted engineering algorithms, simulation models and measurement procedures from recognized technical organizations and rating agencies to estimate natural gas savings (i.e. ASHRAE, ANSI, SMACNA, ARI, ASTM, etc). Applicants must submit documentation of sources used with the Pre-Approval and Final Applications, including clearly describing any assumptions made during calculations.

Applicants must estimate the annual natural gas usage of both existing and proposed equipment based on the current operation of the facility. For assistance in completing the Pre-Approval and Final Applications, please contact the Program Manager.

Calculations should be supplied in electronic format.

Please see the Program Overview and Requirements section for additional details, and use the Sample Application and Supporting Documentation to assist you in completing your calculations. Contact the Program Manager with questions.

What is an “incremental measure cost”?

The definition of incremental measure cost depends on whether the measure being installed is considered to be a replacement or a retrofit:

For replacement measures, incremental measure cost is defined as the cost to purchase and install the energy efficient equipment, minus the cost to purchase and install similar equipment that would meet federal and/or local energy standards, or standard industry practice.

For retrofit measures, the incremental measure cost is the full cost of purchasing and installing the qualifying measure(s).

Note: Incremental Measure Cost is equal to total project cost minus baseline cost.

What documentation do I need to submit with my Application?

Please see the Supporting Documentation Requirements resource for complete details.

Include all documentation that helps demonstrate the performance characteristics of the existing system/baseline. Provide any measured data to support the methodology and if using energy modeling software, such as manufacturer developed applications, underlying assumptions should be provided for Program verification. An explanation should be included when equipment performance rating conditions vary from standard conditions. All assumptions should be clearly stated.

What do my contractor invoices need to include?

Please see the Sample Contractor Invoice in the Custom Handbook for complete requirements.

Why do I have to update my Pre-Approval Application before submitting the Final Application?

Before submitting a Final Application, please review and edit/adjust the information submitted with the Pre-Approval Application. Updates need only to be made when necessary and will be based upon changes in project design, savings estimates, project costs, and/or if additional supporting information is available. If no updates are necessary then you may submit the original application as the Final Application, including all supporting documentation and completing a W-9 Form (Page 6) for the Incentive Payee listed on Page 4. Please note that you must certify that the information provided is correct by signing the Final Application Agreement on Page 4.

Process Related Questions:

When will I hear if my project has been pre-approved?

The Program will do its best to ensure timely processing of all applications. Applications are reviewed in the order they are received. If the Program requires additional information in order to review your application, you will be contacted as soon as possible. The Program will also contact you immediately following approval to notify you with the Pre-Approval Notice. Please note: The Pre-Approval Notice must be signed and returned to the Program prior to moving forward with installation.

Who can I contact to inquire about the status of my application?

Please contact the Business Custom Incentive Program at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 312-344-1520.

I’ve started installation on my custom project but need to adjust something due to availability of the measure/changes in the design/etc. What do I do?

You must notify the Program of any changes to your custom project immediately. The Program will re-evaluate the project design if it has the potential to change the eligibility, incentive amount, etc. You will be notified of any information requests and/or changes to your application or incentive status.

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