NASEO News

FEDERAL UPDATE

Federal Energy Appropriations Update – SEP Funding Mark

The House and Senate Energy and Water Development Appropriations Subcommittees and the full Appropriations Committees have marked-up their FY'11 appropriations bills.  While the full bills are not yet available, the following information of interest to State Energy Offices is known: 

• SEP received $50 million in the House (including $40 million base and $10 million competitive), and $50 million in the Senate with no reference to the competitive; and
• Weatherization received $340 million in the House and $200 million in the Senate. 

The FY'10 funding levels (without ARRA funds) were $50 million for SEP ($25 million base and $25 million competitive) and $210 million for WAP ($180 million base and $30 million competitive). 

In addition, the FY'12 budgets are being considered at OMB, and there are proposals to cut discretionary spending.  Each agency has been given targets.  It is very likely that SEP and WAP will be specific targets in the President's FY'12 budget.

Federal Energy and Climate Legislation

Senator Majority Leader Reid gave up on passing climate or even comprehensive energy legislation prior to the August recess.  The bill he wants to move to the Senate floor before the August recess includes only four items:

• Response to the BP oil spill, including lifting the liability cap (but possibly not completely);
• Home Star;
• Tax credits for natural gas vehicles and infrastructure (a portion of the "Pickens Plan"); and
• Permanent funding for the Land and Water Conservation Fund (LWCF). 

Senator Reid has indicated an interest in moving a more comprehensive bill after the August recess, but it will be more focused on the Bingman/Murkowski bill (S. 1462).

House Ways and Means Committee Green Jobs Tax Act

Ways and Means Committee Chairman Sander Levin released a draft of the Domestic Manufacturing and Energy Jobs Act of 2010. The draft legislation includes the following items:

• $6.5 billion investment tax credits for taxpayers that re-equip, expand or establish domestic manufacturing facilities that produce advanced energy equipment. These tax credits will encourage more than $22 billion of investment in domestic manufacturing facilities and will build upon the $2.3 billion of investment tax credits that were provided in the Recovery Act.
• Encourages domestic demand for renewable energy equipment and energy efficient equipment by (1) continuing successful programs such as the direct payment in lieu of tax credits program (aka "Section 1603" program); (2) providing a long-term extension of the placed in service date for offshore wind and geothermal facilities; and (3) providing State and local governments with financing tools to encourage energy-efficiency and renewable energy on residential property.
• Provides tax incentives for renewable fuel production and technologies to decrease U.S. dependence on foreign oil. In particular, tax incentives for large natural gas and electric/hybrid vehicles to transition the country's diesel fleet to cleaner domestic sources of fuel.  Additionally, the draft would continue tax incentives for domestically produced biofuels such as ethanol and biodiesel.

Please click here for a summary of the discussion draft.

Energy and Defense Departments Announce Agreement to Enhance Cooperation on Clean Energy and Strengthen Energy Security

At a White House Forum on Energy Security today, U.S. Deputy Secretary of Energy Daniel Poneman announced a Memorandum of Understanding (MOU) between the U.S. Department of Energy and the U.S. Department of Defense to accelerate clean energy innovation and enhance national energy security.  America's military pays a high price in terms of added cost, risk of life, and lost operational flexibility in order to deliver fuel supplies to our forces in combat. Both agencies are committed to reducing these vulnerabilities through improved efficiencies and displacement of fossil fuels through on-site renewable power generation.  The MOU, signed by Deputy Secretary Poneman and U.S. Deputy Secretary of Defense William Lynn, covers efforts in the areas of energy efficiency, renewable energy, water efficiency, fossil fuels, alternative fuels, efficient transportation technologies and fueling infrastructure, grid security, smart grid, storage, waste-to-energy, basic science research, mobile/deployable power, small modular reactor nuclear energy, and related areas.  Please click here for the full story and a link to the MOU. 

DOE Announces Closing of $117 Million Loan Guarantee for Kahuku Wind Power Project

Energy Secretary Steven Chu recently announced that the Department of Energy has finalized a $117 million loan guarantee for Kahuku Wind Power, LLC, the owner and operator of the Kahuku Wind Power project.  The project includes the development of an innovative 30 megawatt (MW) wind power plant that will supply electricity to approximately 7,700 households per year.  According to company estimates, the project, located in Kahuku, Hawaii, will create over 200 jobs on the island of Oahu.  Including this loan, the Department of Energy's Loan Programs Office has closed or offered conditional commitments for loan guarantees to support 13 clean energy projects.  Please click here for the full story.

MEETINGS AND WEBINARS

Register Today for the NASEO Annual Meeting in Boston, September 28-October 1, 2010

This year's NASEO Annual Meeting will be held September 28-October 1, 2010, at the Sheraton Boston in Boston, Massachusetts.  While the American Recovery and Reinvestment Act of 2009 (ARRA) continues to deliver unprecedented opportunities and challenges for the State and Territory Energy Offices and their partners, what lies beyond ARRA?  Also, as the Administration evolves in Washington, D.C., keeping up with the pace of change at the U.S. Department of Energy and other agencies is critical.  This meeting offers an opportunity for state energy officials to hear from key policy and decision-makers, learn about new funding and partnership opportunities, and interact with peers.

To prepare and inform conference attendees, NASEO has planned a full week of informative events, with the core conference agenda being complemented by ARRA and committee sessions, as well as site tours and in-depth tracks on topical issues.  The 2010 NASEO Annual Meeting will serve as an essential opportunity for State Energy Office (SEO) directors, staff, and interested stakeholders to hear the latest on innovative financing and project implementation, clean energy technologies, and links between energy, environment, and transportation priorities.

Upcoming NASEO Annual Meeting Session Highlights

• State Energy Program Effectiveness and Impact Evaluation Update
• ARRA State Energy Program and Energy Efficiency and Conservation Block Grant Implementation
• DOE ARRA Implementation: Overall Progress and Successes
• Renewable Energy Applications: Electricity and Transportation
• Technology Investments and Innovation: Discovering and Commercializing New Energy Technologies
• Commercial Buildings Consortium: Achieving a High Performing Building Stock
• Appliance Rebate Program: Lessons Learned
• Evolving State and Federal Roles in Energy and Environmental Policy

Please click here to visit the event website to register online, view the preliminary agenda, and learn more about available sponsorship and exhibitor opportunities.

STATE AND LOCAL NEWS

Arkansas Launches $2.7 Million Grant Program to Promote Green Technology Business Development

The Arkansas Energy Office recently announced a $2.7 million grant program to support the improvement and continued growth of "green" technology companies in Arkansas.  The funds are provided through the American Recovery and Reinvestment Act and administered by the Arkansas Energy Office.  The Green Technology Grant Program targets companies that make or sell products that contribute to renewable energy production or storage, energy efficiency, or programs that result in an overall reduction in energy use. To ensure funds are available for multiple projects, a single company may receive no more than 25 percent of the funds. To read more about the new grant program, please click here.

Colorado Debuts "Industrial Energy Challenge"

Colorado Governor Bill Ritter recently announced the launch of the "Colorado Industrial Energy Challenge."  The Colorado Industrial Energy Challenge is a voluntary program open to industrial facilities with more than $200,000 in annual energy costs. To join the program, companies agree to set a five-year goal of reducing energy use, reporting total energy consumption for the base year, and in following years demonstrating progress. By joining the program, a company can receive free technical assistance to achieve its energy reduction goals. To date, thirteen companies have volunteered to reduce energy intensity at their facilities. To read more please click here.

NYSERDA Partners with National Grid to Reduce Hospital Energy Bills in New York

National Grid and the New York State Energy Research and Development Authority (NYSERDA) recently launched "Energy Efficiency For Health," a powerful new partnership to help National Grid's hospital customers across New York State reduce their energy usage, save on operating costs through more efficient use of electricity and natural gas. National Grid and NYSERDA will work together to provide hospitals with individualized and targeted technical assistance as well as up to $10 million in funding for energy efficiency initiatives that will generate as much as $5 million in annual energy savings.  Upstate University Hospital, the teaching hospital of SUNY Upstate Medical University is the first hospital in Upstate New York to participate in the energy efficiency cost-saving program and kicked off the event at its facility in Syracuse. To read more about the partnership, please click here.

Utah Home Performance Pays for Energy-Efficient Retrofits

The new Utah Home Performance with ENERGY STAR program will pay cash rebates to Utah homeowners to help offset the cost of retrofits that save energy and money. The first step to receiving rebates is having a Home Performance assessment, conducted by an analyst certified by the Building Performance Institute (BPI).  The comprehensive assessment utilizes diagnostic testing to analyze the energy performance of your home.  It takes three-to-four hours, and costs $100.  The program estimates more than 750 homeowners will make the recommended energy-efficient retrofits, reducing their household's energy use by 20 percent or greater. To read more about the program, please click here.

Do you have news you would like to share? Send us your stories and announcements. Email or call Garth Otto with the details: gotto@naseo.org , 703.299.8800, ext. 16.