State Energy Program

State Energy Program

Cost-Shared Support that Allows States to Target Their Own Energy Priorities

The U.S. State Energy Program (SEP) is the only cost-shared program administered by the U.S. Department of Energy (DOE) that provides resources directly to the States for allocation by the governor-designated State Energy Office for use in energy efficiency, renewable energy, and alternative energy demonstration activities. The 30-year-old program was funded at $50 million in FY'10 and is authorized by Congress at $125 million.

The Work of the States and Use of SEP Funding

With these SEP funds and the resources leveraged by them, the 56 State and Territory Energy Offices develop and manage strategic programs that support the private sector in increasing energy efficiency, developing renewable and alternative energy sources, promoting energy related economic development, and reducing reliance on imported oil. All of the activities of the states under the program are conducted in support of strengthening America's competitive position and energy security. Examples of SEP-supported work in the states include:

  • Fostering greater energy efficiency in manufacturing to retain jobs;
  • Supporting private sector energy innovations through such means as business incubators and job training;
  • Advancing cost-effective energy efficiency retrofits in public buildings (e.g., schools, state facilities) to reduce energy costs to the taxpayer;
  • Implementing energy emergency plans to mitigate the economic and security implications of energy supply disruptions and related price spikes;
  • Delivering public energy efficiency education;
  • Conducting statewide energy planning to ensure states' indigenous energy resources are identified and economic development options are understood; and
  • Piloting innovative energy demonstration projects with the private sector and research institutions.

$1 in Federal SEP Funding Yields $7.22 in Annual Energy Cost Savings

The states' ability to deliver extraordinary economic and energy under SEP has been demonstrated in every state. The conclusion of a study conducted by the Oak Ridge National Laboratory (ORNL), an in-depth cost-benefit analysis of SEP, showed 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 than typical federal energy programs.

Further, ORNL found that in just one year the states produced the following results under SEP:

  • Energy Audits – 15,264 energy audits of residential, commercial, and industrial buildings were performed
  • Retrofits – 12,896 buildings were retrofitted to be more energy efficient
  • Traffic Signals and Controls – 92,488 energy-efficient LED traffic lights were installed
  • Alternative Energy – 6,434 alternative fuel vehicles were purchased or converted
  • Loans and Grants – $30,403,388 of loans made; $12,345,608 of grants given
  • School Education – 604,050 students taught about energy efficiency
  • Energy Emergency Planning – 78 energy emergency plan elements were developed
     
  • Full-Text of the ORNL Report
  • NASEO Summary of ORNL Report

SEP Basics

SEP Federal Outreach

The documents below can be used for federal outreach and communications on SEP funding and project implementation.

State Energy Program Annual Allocations to the States