Frequently Asked Questions about State Energy Activities in the Recovery Act
General ARRA Questions
What is the overall purpose of this funding for energy efficiency and renewable energy programs?
The goal of the energy and environmental elements of AARA is three fold: 1) a fast and comprehensive recovery from the current recession by the creation of jobs; 2) the creation of tangible, measurable energy savings; and 3) the achievement of positive environmental impacts.
What are the primary energy efficiency programs for which money has been appropriated under the “economic stimulus legislation," officially known as the American Recovery and Reinvestment Act of 2009 (ARRA), which was signed into law by President Obama on February 17, 2009?
• $3.1 billion for the State Energy Program (SEP), to be used for energy efficiency and renewable energy programs, as authorized under Part D of Title III of the Energy Policy and Conservation Act (EPCA);
• $3.2 billion for the recently authorized Energy Efficiency and Conservation Block Grant (EECBG), to assist primarily local governments in implementing energy efficiency and conservation programs under Title V of the Energy Independence and Security Act (EISA) of 2007;
• $5 billion for the Weatherization Assistance Program (WAP), for weatherizing eligible low income residences, as authorized under Title IV, Part A of the Energy and Conservation Production Act (ECPA), Public law 94-385;
• $300 million for an ENERGY STAR Appliance Rebate Program, to be used for grants for state rebates to consumers who purchase energy efficient Energy Star appliances, as authorized under Section 124 of the Energy Policy Act of 2005 (EPACT 05).
What are the types of things State Energy Offices (SEOs) need to do immediately in order not to delay receipt of these funds from the U.S. Department of Energy (DOE)?
As indicated in an email you received on February 19, 2009 from NASEO your governor is required to provide certain assurances relative to utility policy and building code upgrades as a specific pre-condition of your state receiving ARRA funds for the SEP. You have been provided three model letters and guidance to assist you in helping your governor meet this obligation. We encourage you to contact either Jeff Genzer or NASEO’s Executive Director, David Terry, for additional information. Also, please ensure that copies of letters from your governor, especially the one to the Secretary of Energy, are also routed electronically to Jeff Genzer and David Terry. Almost all the states, territories and DC have submitted letters, as of 3/23/09.
What other steps should SEOs take immediately to prepare for this new funding?
• Meetings, and/or conference calls with your local jurisdictions are strongly advised. The purpose of this outreach should be achievement of maximum communication and coordination regarding these new funds, programs, and opportunities. Fact sheets, such as the one designed by New Mexico’s Energy Conservation and Management Division, are an excellent way to give further, more detailed information to your local jurisdictions.
• Consider new programs or activities operated by other states or organizations. NASEO has assembled a number of best practices program examples at: http://www.naseo.org/members/programs/default.aspx
• Strategizing on how best to work with your procurement and budgetary processes so as to minimize time lost in getting the new funding “out the door”.
• Exploring appropriate partnerships with other jurisdictions, Energy Service Companies (ESCO’s), utilities, hospitals, universities, and school districts.
• Learning how others have already done what you now may wish to do, so as to avoid “reinventing the wheel.”
What is the timeline for applications/awards for ARRA Energy Programs?
In general, funds are to be obligated by 9/30/2010 and spent within 3 years.
State Energy Program – DOE Funding Opportunity Notice (DE-FOA-0000052)(Issued 3/12/09 (amended 3/19/09); initial state applications due 3/23/09 and comprehensive applications due 5/12/09) [$3.1 billion](Operated by Department of Energy, Energy Efficiency and Renewable Energy Office) – Funds are distributed based upon performance – virtually all states, territories and DC have submitted Governors’ assurance letters as of 4/7/09 (Governor of Alaska has turned down energy money).
Weatherization Assistance Program – DOE Funding Opportunity Notice (DE-FOA-0000051)(Issued 3/12/09; initial state applications due 3/23/09 and comprehensive applications due 5/12/09)[$5 billion](Operated by Department of Energy, Energy Efficiency and Renewable Energy Office) – Funds are distributed based upon performance [http://www.waptac.org]
Energy Efficiency and Conservation Block Grant – DOE Funding Opportunity (DE-FOA-0000013) (Issued 3/26/09) state applications due 5/26/09; local government and tribal applications due 6/25/09;Notice issued yet – expected prior to 4/1/09 [$3.2 billion](Operated by Department of Energy, Energy Efficiency and Renewable Energy Office) – 68% of Funds directly to over 1700 largest cities and counties; 16% through states to towns under 35,000 and counties under 200,000 and states must distribute within 6 months of plan approval; 12% to states; and $400 million competitive (no announcement yet for competitive).
Energy Star Appliance Rebates Program – No Funding Opportunity Notice issued yet [$300 million](Operated by Department of Energy, Energy Efficiency and Renewable Energy Office)
“Smart Grid” – Preliminary Notice issued on 3/2/09 (DE-FOA-0000036, for regional demonstrations, utility scale storage demonstrations and synchrophasor demonstrations – Section 1304 - EISA), but no Funding Opportunity Notice issued yet – expected prior to 4/17/09, with 30 day comment period and actual responses to solicitation no earlier than mid-June, 2009; Separate announcement for advanced metering and demand response equipment – Section 1306 - EISA [$4.4 billion](Operated by Department of Energy, Office of Electricity Delivery and Energy Reliability)
“Green Jobs”
a) $100 million through Department of Energy, Office of Electricity Delivery and Energy Reliability, and associated with “Smart Grid” (no announcement yet)
b) $500 million through the Department of Labor
c) Up to $1 billion for Training and Technical Assistance associated with the Weatherization Assistance Program
Energy RDD&D
a) $800 million for Biomass through DOE, Energy Efficiency and Renewable Energy Office
b) $400 million for Geothermal through DOE, Energy Efficiency and Renewable Energy Office
c) $256 million for Industrial programs through DOE, Energy Efficiency and Renewable Energy Office [Funding designated for combined heat and power ($106 million), district energy systems, waste energy recovery, efficient industrial equipment and “Save Energy Now”](preference will be given to projects that can “initiate implementation” within 120 days)
d) Remainder of $2.5 billion unallocated
“Clean Cities” – DOE Funding Opportunity Notice (DE-PS26-09NT01236-04)(Initial state/local consortium applications due 5/29/09 – Area of Interest 4)[$300 million](Operated by Department of Energy, Energy Efficiency and Renewable Energy Office)
Transportation Electrification – DOE Funding Opportunity Notice (DE-FOA-0000026)(Issued 3/19/09)(Application Due Date – 5/13/09)(Grants to establish development, demonstration, evaluation and education projects to accelerate market introduction of advanced electric drive vehicles, especially including plug-in hybrid cars $400 million for transportation electrification for local metropolitan transportation agencies and state grants; $1.5 billion for battery development for hybrids and $500 million for other components, such as electric motors, etc.(DE-FOA-0000028)(Issued 3/19/09, closing date 5/13/09).
Federal Loan Guarantees – DOE has over $42 billion, much of it since 2006. First announcement on 3/20/09 of a $535 million loan for a solar energy development plant (Solyndra, Inc.); indications are that the process will speed up.
Block Grant Program (EECBG)
What is the Energy Efficiency and Conservation Block Grant Program?
The Energy Efficiency and Conservation Block Grant (EECBG) program is intended to help local governments, cities and counties, implement strategies to encourage energy efficiency and renewable energy initiatives. The program emphasizes a community-based approach to help meet energy and climate protection goals.
What level of coordination will be expected between State Energy Offices and the cities and counties within its boundaries?
All of this ARRA funding brings with it the responsibility for State Energy Offices to coordinate with localities to ensure viable partnerships and maximum impact. This is an historic opportunity for the State and Territory Energy Offices, and NASEO recommends states hold meetings with local government representatives to discuss strategies and opportunities as soon as possible.
What are possible uses of the EECBG funds?
DOE will provide additional guidance on the program. Those activities specified in the authorizing language include the following:
• Development and implementation of an energy efficiency strategy;
• Energy audits of homes and commercial buildings;
• Energy efficiency retrofits of nonprofit organizations and governmental agencies;
• Development and implementation of energy efficiency programs for its buildings and facilities, including design and operation, public education, measurement and verification of energy use, or identification of energy efficient technologies;
• Transportation measures to conserve energy, including use of flex time by employees, satellite work centers, development of zoning and other land use guidelines to promote energy efficient land use development, development of alternative infrastructure such as bike lanes, pathways and sidewalks, synchronization of traffic signals, or other measures that decrease energy use and increase energy efficiency;
• Financial incentive program for energy efficiency improvements;
• Development and implementation of building codes and inspection services for public, commercial, industrial, and residential buildings to promote energy efficiency;
• Application of energy distribution technologies such as district heating and cooling systems;
• Activities to increase participation in material conservation programs such as recycling;
• Application of technologies that capture methane from landfills;
• Installation of light emitting diodes (LED) in traffic signals and for indirect lighting of the outside of buildings;
• Use in any government building of onsite renewable energy such as solar thermal, solar electric, wind energy, or geothermal.
Is there a match requirement for these funds going directly to the localities?
There is no match requirement. Local governments are strongly encouraged to contribute their own or leveraged funds to a proposed project. Leveraged funds can come from a variety of sources such as other levels of government, utilities, businesses, nonprofit organizations or foundations.
WAP
What are the major changes to the Weatherization Assistance Program (WAP) with regard to stimulus funds?
Two major statutory modifications were made in ARRA to improve program delivery: 1) the amount that can be spent on each home (on average) increased from $2,500 to $6,500, to allow more comprehensive energy efficiency measures to be implemented; and 2) eligibility was increased to 200 percent of poverty from 150 percent of poverty. There is a statutory preference for community action agencies to serve as delivery agents for this program, though in order to expand the program there is an expectation that local governments will have to coordinate with these agencies or deliver the expanded services themselves. The National Association for Community Services Programs (NASCSP) is the association that coordinates the state-level program managers and the community action agencies are represented by the National Community Action Foundation.
Energy Star Rebates
What is the Energy Star Appliance Rebate Program?
ARRA provides $300 million to the state energy offices to operate a program to provide rebates to encourage consumers to purchase ENERGY STAR appliances. This program requires a 50 percent match for administrative costs. It was enacted as Section 124 of the Energy Policy Act of 2005. DOE is preparing guidance on this program, though it is likely to be distributed through SEP, so long as the state has (or will have) an appliance rebate program in place. The guidance will limit the products that are eligible for rebates to the most efficient products. This program has not previously received any funding.
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