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NASEO News Release
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For more information contact:
Cary Brazeman, 310-205-3590
cary@thecorporatestoryteller.com

FOR IMMEDIATE RELEASE — June 30, 2009

U.S. Department of Energy Approves 16 State Energy Spending Plans as Part of Stimulus Push, Long-Range Investment

  • $508 Million for Those 16 States Now
  • Energy Efficiency and Renewable Energy Stimulus Projects
  • 39 More State, Territory Energy Program Plans Under Review by DOE

ALEXANDRIA, VA — The U.S. Department of Energy has approved 16 State Energy Program spending plans authorized as part of the federal economic stimulus package signed into law in February.  With the approval of these plans, 16 of the nation’s State Energy Offices are receiving $508 million, representing 50% of full program funding.  Remaining funding will come as states implement their programs and deliver results.

The 16 state plans approved so far include: Arizona, California, Connecticut, Florida, Idaho, Iowa, Kansas, Michigan, Minnesota, Missouri, New Hampshire, North Carolina, South Carolina, South Dakota, Utah and Washington.

DOE continues to review State Energy Program spending plans from 39 other states and U.S. territories.  Action on the plans is expected by the end of July.

These energy plans fulfill state obligations under the federal State Energy Program, one of a number of stimulus-funded programs operated by the 56 State and Territory Energy Offices.  Total stimulus funding for the State Energy Program is $3.1 billion.

The State Energy Program is a key part of the Obama Administration’s national strategy to support green job growth, while making an historic investment in economically viable clean energy projects.

“This funding will provide an important boost for state economies, help put Americans back to work, and move us toward energy independence,” said DOE Secretary Steven Chu.  “It reflects our commitment to support innovative state and local strategies to promote energy efficiency and renewable energy while insisting that taxpayer dollars be spent responsibly.”

The National Association of State Energy Officials, based in Alexandria, VA, represents the State and Territory Energy Offices.  NASEO members, typically designated by governors, are leading state efforts to direct, invest and manage energy spending to maximize energy savings, private sector cost-share, and economic benefits, including jobs.  The energy offices manage more than $3 billion of state funds annually in addition to the federal stimulus funding.

Other federal energy spending under the stimulus plan includes $3.2 billion for the Energy Efficiency and Conservation Block Grant Program, which is directed to about 1,700 cities, counties, local governments and states, and 510 tribes; $5 billion for the Weatherization Assistance Program, which helps low-income people reduce their energy bills by making homes more energy efficient; $4.4 billion for utilities and others involved in development of a national “smart grid” for electricity transmission, delivery and use; and $300 million for Energy Star appliance rebates to consumers.

More Details on State Energy Program Plans

Following is a brief overview of five states’ State Energy Program spending plans:

Arizona:  The Arizona Energy Office submitted a $55.4 million plan, which has been approved.  Programs for Arizona schools and state buildings will utilize energy performance contracting to leverage $30 million in stimulus funding with private capital to achieve $150 million in energy efficiency and renewable energy projects.  These energy performance contracts will reduce annual utility costs by $15.5 million for Arizona taxpayers.  Additional programs will distribute $25 million in funding, grants, incentives and a revolving energy loan program to encourage energy efficiency and renewable energy projects statewide.  Overall, the program is expected to create more than 1,500 jobs for Arizona.

Iowa:  Iowa’s Office of Energy Independence submitted a $40.5 million plan, which has been approved.  This included funding for public, private, nonprofit agricultural, commercial and industrial facilities, as well as technology demonstration and training.  The state will establish a revolving loan fund for the agricultural and commercial sectors and another for nonprofit entities.  Iowa also will set up a financing program for schools, hospitals, local governments, and state organizations, providing the capital necessary for energy efficiency improvements in the public sector.

Massachusetts:  The Massachusetts Department of Energy Resources submitted a $54.9 million plan, which is under review.  Massachusetts expects to leverage federal funding up to six-fold with private funds, based on the anticipated revenue stream of energy cost savings.  This will enable the Commonwealth to advance up to $330 million in energy projects that significantly reduce fossil fuel use and greenhouse gas emissions while potentially creating more than 4,000 jobs.  $20 million will be directed to a new Massachusetts Solar Stimulus effort to install large solar projects (many in excess of 500 kilowatts) at state facilities.  $14.9 will be directed to an Energy Efficiency for State Facilities program that will implement efficiency retrofits and advanced metering.  $20 million will be used for a Massachusetts Building Energy Transformation effort to fund proposals that demonstrate solutions that could transform how energy is used in buildings across Massachusetts.

New York: The New York State Energy Research and Development Authority submitted a $123 million plan, which is under review. Under the plan, $82 million will be directed to energy efficiency, providing direct financial support to municipalities, schools, hospitals, public colleges and universities, and nonprofit organizations for the installation of energy-efficiency measures including lighting, cooling, heating, motors, building envelope, combined heat and power, and geothermal systems. Technical assistance will be available to targeted sectors to assist customers in designing energy-related projects. New York also will be directing $4.4 million to support adoption of an advanced Energy Code and to support compliance; $31 million toward expansion of solar energy; and $4.6 million to alternative-fuel vehicles.

Texas:  Texas’ State Energy Conservation Office proposes using stimulus funding in several areas, including an innovative revolving loan fund based on a current program with a successful track record.  Eligible entities can use loans for energy efficiency and retrofit projects on public buildings and facilities.  Funding will support energy management systems and equipment controls, installation of high efficiency HVAC systems and lighting, and building insulation, window and plumbing improvements.  Awards will go to projects offering the most efficient use of taxpayer dollars, achieving the highest per-dollar energy savings.  The savings that entities recognize from lower utility costs will repay the loans, allowing the repaid money to be made available to other eligible entities.  (Texas’ State Energy Program spending plan is under review.)

To learn more about funding plans and programs in each state, contact specific State Energy Offices.  A complete list of State Energy Offices is accessible at http://naseo.org/members/states.

About NASEO

NASEO members lead America’s State and Territory Energy Offices, which build on the unique resources of their states and regions to advance key energy goals, including:

  • Improving energy efficiency in homes, commercial buildings, industry and agriculture;
  • Opening markets for renewable energy, such as solar, wind, geothermal and biofuels;
  • Promoting sound residential, commercial and institutional energy building codes;
  • Transforming transportation by advancing biofuels, plug-in hybrids and other alternative fuels and vehicles;
  • Delivering cost-effective and verifiable greenhouse gas emissions savings;
  • Developing and testing creative clean energy financing mechanisms (such as revolving loan funds), policies and market transformation programs;
  • Supporting state research institution innovation of cutting-edge energy technologies; and
  • Enhancing energy assurance and energy emergency preparedness.

The State Energy Program has proven effective at both reducing energy consumption and attracting state and private capital investment.  According to a 2005 report by the Oak Ridge National Laboratory, each $1 of SEP federal funds is associated with annual savings of 1.03 million source BTUs and a cost savings of $7.22.  Also, each $1 of SEP federal funds is typically leveraged by $10.71 of state and private funds, making the federal money go much further.

Public and private-sector energy organizations are welcome to join NASEO as affiliate members.  For more information, visit www.NASEO.org.

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