NASEO News

FEDERAL UPDATE

NASEO Testimony at Senate Energy and Natural Resources Committee Hearing

Philip Giudice, Chair of the National Association of State Energy Officials (NASEO), appeared March 11 before the U.S. Senate Committee on Energy and Natural Resources to give testimony in support of a variety of legislative provisions that encourage job creation.

"At the present time, the Association is proactively working with the states in ensuring that the energy portion of the stimulus funds directed to state activities is effectively put to work as quickly and productively as possible," said Giudice, who also is the Commissioner of the Massachusetts Department of Energy Resources. "We (NASEO) are also working to ensure that as we look to the future, we have established the basis for our transition to a clean energy economy."

Giudice's testimony was part of a Senate hearing on job bill legislation that would authorize creation of several energy programs that hold enormous long-term energy benefits, but intended to jumpstart job creation in the short-term. Among these were a Home Star residential energy retrofit program, the Building Star program for energy improvements in commercial buildings, the Energy-Efficient Manufactured Housing Act of 2009 and Industrial Energy Efficiency Programs.

"The proposals we are discussing today will help serve as an important bridge to a cleaner energy future and will create jobs very quickly," Giudice told senators. "We know that our economy today wastes enormous amounts of energy. We are in the process of building a substantial track record of success with the stimulus funds to demonstrate how prudent investments in efficiency pay dividends for the economy in reducing energy waste."

Cathy Zoi, Assistant Secretary, Energy Efficiency and Renewable Energy in the Department of Energy also appeared before the committee. Zoi told senators that there is a workforce standing by to make these energy improvements.

"We have an unique opportunity to re-employ construction folk," Zoi said, pointing out there are more than 130 million homes in the U.S. and each and every one of them has the opportunity to become more energy efficient.

"Like the President said, if you saw $20 bills flying out your window you would try and catch them," she said.

Home Star is a legislative proposal focused on short-term incentives for energy efficiency in the residential sector. The program is designed to drive new private investment into the hard hit construction and manufacturing sectors, while saving consumers money on their energy bills. Program supporters estimate the program will create 150,000 jobs in the residential energy efficiency sector by building upon state programs and existing industry capacity for the retrofits themselves. The program is intended to be fast-acting.

"Home Star will create jobs that cannot be outsourced overseas," said Larry Laseter, representing the Home Star Coalition, which is comprised of national retailers, building products manufacturers, labor advocates, environmental and energy efficiency groups, state agencies, contractors and more than 600 small businesses from every state.

Laseter added that home energy efficiency improvements work and the results are proven.

"The Home Star program will help more than three million American families retrofit their homes for energy efficiency, saving them as much at $9.4 billion in energy costs over 10 years," he said.

Giudice echoed the savings potential of the program but also warned senators that it is critically important the Home Star program be carefully tailored to ensure that it maximizes benefits to taxpayers and energy customers by requiring integration and coordination with existing comprehensive state programs.

"Anything less risks disrupting the progress that states are already making to achieve the employment, energy and climate goals we all share," Giudice said. "DOE and the rebate aggregators must coordinate with these comprehensive state programs. We certainly do not want consumers facing confusing offerings."

Giudice also added that there are three changes that NASEO recommends for the Home Star draft legislation.

"First of all," he said, "we feel strongly that for purposes of NEPA and Buy-American, the Home Star program should be treated in the same manner as the Weatherization Assistance Program. As Malcolm Woolf (NASEO Vice-Chair) testified last week, the federal and state governments have learned a great deal through the implementation of ARRA. One thing we learned is that further delay is not acceptable. Home Star is a residential energy efficiency retrofit programs: Weatherization is a residential energy efficiency retrofit program. Home Star should be treated in the same manner for purposes of these important statutes.

"Second, again in order to avoid delay, a waiver provision should be built into the statute in order to permit minor changes in state programs implemented under Home Star to be implemented quickly.

Finally, Giudice said, it is critical that the Home Star program be coordinated with the existing residential home energy efficiency tax credit.

In addition to the Home Star provision, Giudice voiced NASEO's support of the Building Star provisions.

"If Building STAR is fully funded at $6 billion, consumers would save $3.3 billion per year on their energy bills, more than 190,000 new jobs would be created, and the equivalent of nearly four million cars worth of carbon dioxide emission would be avoided by the end of 2011," he said.

Building STAR, a package of rebates for energy efficient equipment, materials and building services, is designed to meet the unique needs of the commercial and multi-family residential building sector. The legislation is the product of a broad coalition of more than 80 unions, contractor groups, manufacturers, financial services companies, consumer groups, distributors, technical experts and efficiency advocates.

Senators also heard testimony on legislation aimed at energy efficiency in the manufactured housing industry.

Stacy Epperson, representing Frontier Housing, testified in support of manufactured housing incentives. Frontier Housing is part of a network of non-profit housing organizations helping low-income families find quality, affordable homes that offer an opportunity to build equity while reducing homeownership costs.

"Nationwide, more than two million families live in old, and often dilapidated, mobile homes," Epperson said. "These homes are among the nation’s most energy inefficient. Most are found in economically depressed, rural areas and commonly are home to families that are near or below the poverty line. These households often fall through the cracks of federal government assistance programs yet they may be trapped in a cycle of very high energy bills with little or no resources to make efficiency improvements in their own homes.

Epperson said that additional taxpayer supported investments for energy improvements and weatherization is not a long-term solution for the manufactured housing industry.

"These homes can never be made energy efficient," she added. "Built prior to the federal code that regulates the construction of manufactured housing, they have degraded to the point where it is more prudent and less costly to simply replace the home than make the sizable investment in the insulation, windows, new equipment, and envelope repair that would be needed."

NASEO testified in support of a proposal by Senator Tester to address the urgent need to replace pre-1976 manufactured housing with Energy Star manufactured housing.

"They (pre-1976 manufactured homes) tend to use far more energy than the average home because of little insulation or other energy savings measures," Giudice testified. "Targeting homeowners with a minimum of $7,500 per home in the form of a rebate or down payment assistance will help move this critical effort forward. This program should be especially helpful in rural areas."

Giudice concluded his prepared remarks by voicing NASEO's support of the Industrial Energy Efficiency Programs.

"Under ARRA, my state like virtually all others was widely over-subscribed when we issued RFPs for certain kinds of projects, including industrial energy efficiency projects," he said. "We have project plans on the shelf from industrial facilities across Massachusetts who tell us they are ready to move forward in the next few months with efficiency investments if they could get access to additional support. We think that $4 billion should be allocated for this program, pursuant to subtitle D of title IV of the Energy Independence and Security Act of 2007 (EISA)(42 U.S.C. 17111 et. seq.). Over ten states utilized ARRA funds directly for manufacturing retooling to promote energy efficiency. This makes sense from an energy perspective as well as a global competitiveness perspective."

The NASEO testimony stressed that ARRA funding at the state and local level is accelerating, with almost $2 billion in State Energy Program (SEP) funds committed. The State Energy Star Appliance Rebate program of $300 million will probably be fully spent in the next few months. The Weatherization Assistance Program is accelerating spending, and is expected to meet the specified targets now that the Davis-Bacon issues are generally resolved. The Energy Efficiency and Conservation Block Grant (EECBG) is also accelerating spending. Despite what has been suggested by some, NASEO's testimony made it very clear that these stimulus funds were not an acceptable or available source of funds for the proposed Jobs Bill.

The Senate plans to act on the jobs bill later this month.  Please click here to review Commissioner Guidice's testimony. 

Treasury, Energy Announce Guidance for Tax Treatment of Smart Grid Investment Grants

The Department of Treasury and the Department of Energy announced new guidance on the tax treatment for grantees receiving Recovery Act funding under the $3.4 billion Smart Grid Investment Grant program.  Under the guidance, the Internal Revenue Service is providing a safe harbor under section 118(a) of the Internal Revenue Code for corporations receiving funding under the program.  The $3.4 billion Smart Grid Investment grant program is the largest single energy grid modernization investment in U.S. history.  Through this Recovery Act-funded program, one-hundred private companies, utilities, manufacturers, cities and other partners are receiving funding to implement a broad range of technologies that will spur the nation's transition to a smarter, stronger, more efficient and reliable electric system.  Awardees have stated that the projects will create tens of thousands of jobs, and consumers in 49 states will benefit from these investments in a stronger, more reliable grid.  Implementing the smart grid will promote energy-saving choices for consumers, increase efficiency, and foster the growth of renewable energy sources like wind and solar.  Please click here for the press release and a link to the full guidance.

EPA Seeks Public Comment on the 15th Annual U.S. Greenhouse Gas Inventory

The U.S. Environmental Protection Agency (EPA) is seeking public comment on the annual Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2008 draft report. This report will be open for public comment for 30 days after the Federal Register notice is published.

The draft report shows that in 2008, overall greenhouse gas (GHGs) emissions have decreased by 2.9 percent. This downward trend was attributed to a decrease in carbon dioxide emissions associated with fuel and electricity consumption. Total emissions from GHGs were about 6,946 million metric tons of carbon dioxide (CO2) equivalent. Overall, emissions have grown by 13.6 percent from 1990 to 2008.  Please click here for the full story and for more information on the draft report and how to submit public comments.

DOE Guarantees $189 Million in Loans for Wind Power, Advanced Windows

DOE offered two conditional loan guarantees for clean energy projects: a $117 million loan guarantee using American Recovery and Reinvestment funds for First Wind to finance the construction and start-up of an innovative 30-megawatt (MW) wind energy project in Kahuku, Hawaii, and a $72 million conditional loan guarantee to Sage Electrochromics, Inc. for an addition to its factory in Faribault, Minnesota, that manufactures electronically tintable windows. The awards mark the seventh and eighth conditional commitment issued by DOE's Loan Guarantee Program since March, 2009.   Please click here for the full story.

Regional Test Centers Project Expands U.S. Small Wind Certification Testing Capability

The U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) and DOE's Wind and Hydropower Technologies Program announced the selection of four partners to establish small wind Regional Test Centers (RTCs) to conduct tests on small wind turbines to meet national and international standards.  These awards provide funding, training, and technical support for each Regional Test Center to conduct testing of two small wind turbines to support the burgeoning U.S. small wind turbine market.

Award recipients are Intertek Testing Services NA, Inc. in New York, Kansas State University, The Alternative Energy Institute at West Texas A&M University, and Windward Engineering, LLC in Utah.

The Regional Test Center project goal is to support the U.S. small wind market by increasing the number of organizations qualified to conduct small wind turbine standards testing and to drive down the cost of this testing.  Test Results are used by certification bodies, such as the Small Wind Certification Council, to certify small wind turbines for durability and performance.  Please click here for the full story.

ANNOUNCEMENTS

ACEEE Awards Deadline Extension

The deadline to submit nominations for the ACEEE National Review of Exemplary State Energy Efficiency Programs is now March 16, 2010.  If you have already submitted a nomination, you will need to re-submit to nominations@aceee.org.  ACEEE has also expanded the eligibility requirements. The expansion is meant to clarify the eligibility of programs funded by statewide systems-benefits charges set by legislators.

Programs must be:

• Overseen or administered by a state government agency, university, or other state-level public institution
• Fully or partially (at least 20%) funded by state appropriations, state bond issues, federal funds, carbon allowance auction proceeds, other legislatively-directed funding, or other non-utility funds.

For more information about the project and to access the nomination form, please visit, http://www.aceee.org/energy/state/awards.htm.  Please contact Michael Sciortino at msciortino@aceee.org with any questions or concerns.

EVENTS AND WEBINARS

REGISTER NOW!  DOE Summer Energy Outlook Conference and Energy Data and Assurance Planning Workshop

The Department of Energy's (DOE) Office of Electricity Delivery and Energy Reliability (OE) in conjunction with the National Conference of State Legislatures (NCSL) and the National Association of State Energy Officials (NASEO) are pleased to invite you to the Summer Energy Outlook Conference and a special, interactive Workshop on Energy Data and Assurance Planning.  These two events will be held on April 20-21, 2010, at the Brown Palace in Denver, Colorado.

The Summer Energy Outlook Conference will feature the Energy Information Administration's 2010 Short-Term Energy Outlook including outlooks and presentations by experts on global oil supplies, natural gas, electricity and renewables.

The Workshop on Energy Data and Assurance Planning will be held for State and Local government officials to identify and understand how to use EIA energy data through a series of energy-based scenarios.  Participants will receive practical guidance on State and Local Energy Assurance Guidelines and receive ideas on how to develop a mechanism for tracking energy supply events and disruptions.

There is no registration fee, but you must register to attend.  Please click here to register for the meeting, review the preliminary agenda and find information about event lodging.  The registration deadline for the two events is April 9, 2010.

The event is also co-sponsored by the National Association of Regulatory Utility Commissioners, the National Governor's Center for Best Practices, and the Public Technology Institute.

Register Now for Part One of a Two-Part EPA Webinar Series Entitled "Capturing New CHP Opportunities -- Maybe in Your Own Backyard"

The EPA CHP Partnership in collaboration with the DOE's EERE will host Part One of a Webinar series focused on capturing new CHP opportunities and project development strategies on March 18, 2010, from 3:00 PM to 4:30 PM EST.  Part One will focus on capturing new CHP opportunities, and is intended for entities who have heard about CHP's energy efficiency potential but not sure how to pursue these opportunities in their own "backyards" or in facilities that perhaps have not yet been considered as feasible candidates for CHP.  For more information and to register, please click here.

Save the Date!  Leveraging Energy Partnerships in the Stimulus Environment

NASEO invites you to attend a one day conference on "Leveraging Energy Partnerships in the Stimulus Environment" on April 15, 2010.  Hosted by the National Council for Public-Private Partnerships (NCPPP), and co-sponsored by NASEO, the event will focus on ways state energy offices and other advocates of energy efficiency and renewable energy programs can further leverage their ARRA funding at all levels of government (state and local) by taking advantage of public-private joint initiatives.

Speakers will include Mark Johnson and Mark Bailey of US DOE, Joe Sikes, Director of Facilities Energy for DOD, Maryland Energy Administration (MEA) Director Malcolm Woolf, Virgin Islands Energy Office Director Bevan Smith, and Anita Molino, Energy Institute Chair.  All will be offering insights into how to increase the effectiveness of limited government funded energy programs via the use of private capital.  Representatives from the U.S. Congress and key segments of the energy efficiency and renewable energy industry have also been invited.  Case studies of successful public private partnerships will be discussed.

The conference will be held at the Sheraton National Hotel, 900 South Orme Street in Alington, VA.  Please go to www.ncppp.org to access the agenda, registration, and hotel information.  For further information, contact Garth Otto at NASEO, gotto@naseo.org.

STATE AND LOCAL NEWS

DOE Announces Up To $154 Million for NRG Energy's Carbon Capture and Storage Project in Texas

U.S. Secretary of Energy Steven Chu announced that a project with NRG Energy has been selected to receive up to $154 million, including funding from the American Recovery and Reinvestment Act. Located in Thompsons, TX, the post-combustion capture and sequestration project will demonstrate advanced technology to reduce emissions of the greenhouse gas carbon dioxide. It will also assist with enhanced oil recovery efforts from a nearby oil field.  The NRG Energy project was selected under the third round of the Clean Coal Power Initiative (CCPI), a cost-shared collaboration between the federal government and private industry to demonstrate low-emission carbon capture and storage technologies in advanced coal-based, power generation. The goal of CCPI is to accelerate the readiness of advanced coal technologies for commercial deployment, ensuring that the United States has clean, reliable, and affordable electricity and power.  Please click here to read the full story.

Bluegrass State Getting Greener

Kentucky's per capita electricity consumption is among the highest in the United States, likely a result of cheap energy costs fueled by a reliance on coal — a nonrenewable energy source. To help reduce Kentucky's energy appetite, the state set a goal of 25-percent energy reduction by 2025 and is using Recovery Act funding from the U.S. Department of Energy to improve the energy-efficiency of its buildings.  $14 million in State Energy Program funds are being put to use by establishing the Green Bank financing program. The program works by loaning money for energy-efficiency improvements to state organizations. That way, the barriers put in place by high upfront costs are removed. State entities' reduced energy usage will result in cost savings that will repay the loan. In fact, over the life of the Green Bank project, $2.15 million in taxpayer money will be saved.  Please click here for the full story.

Clear Skies Ahead For Colorado Clean Energy

Colorado's commitment to clean energy may soon be second only to California's.  The Colorado Senate recently passed a bill that would increase the state's renewable portfolio standard (RPS) to 30 percent by 2020–California's RPS is a neck ahead at 33 percent. Governor Bill Ritter is expected to sign the bill if/when the House passes it through with some small changes. This would boost Colorado solar tremendously.  But Ritter's push for a clean energy economy doesn't end there. Shortly after the bill passed the Senate, the Governor announced the Colorado Clean Air-Clean Jobs Act, which had already been cleared with the large investor-owned utility Xcel Energy. This act is primarily a move away from outdated coal-fired power plants. Accordingly, it represents a major windfall for natural gas, and hopefully for solar energy and other renewable energy technologies as well.  Please click here for the full story.