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American Recovery and Reinvestment Act of 2009 (ARRA) Opportunities for Public Power

APPA National Conference - 6/16/09

Jeff Genzer Duncan, Weinberg, Genzer & Pembroke, P.C.1615 M Street, N.W., Suite 800Washington, DC 20036(202) 467-6370jcg@dwgp.com

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Introduction

Key contacts: Department of Energy, in charge of stimulus:

Matt Rogers Claire Johnson

Energy Efficiency and Renewable Energy Office at DOE: Gil Sperling Mark Bailey Dan Beakly Johanna Zetterberg

Office of Electricity Delivery and Energy Reliability Eric Leightner (Smart Grid)

• The American Recovery and Reinvestment Act of 2009 (ARRA) provides billions of dollars in new funding for energy efficiency programs.

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Energy Efficiency and Conservation Block Grant

$3.2 billion is provided for the Energy Efficiency and Conservation Block Grant (EECBG) EECBG had not previously been funded

$400 million of the $3.2 billion will be distributed through a competitive program among state, local and tribal entities Cooperative/coordinated proposals encouraged

Of the remaining $2.8 billion, funds will be distributed (funds must be obligated within 18 months of DOE approval): 68% directly to over 1700 of the larger cities in the U.S. 16% through the states to counties of under 200,000 and towns of under 35,000

- Funds must be distributed within 6 months of DOE approval of a plan 12% directly to state energy offices for the State Energy Program 2% for competitive program, likely to be added to $400 million noted above 2% available to tribes

Operated by the Office of Weatherization and Intergovernmental Programs (OWIP) under the Energy Efficiency and Renewable Energy Division at DOE (EERE)

Contact your state energy office, and coordinate with your statewide Mayor’s group

DOE Funding Opportunity Notice (DE-FOA-0000013) (Issued 3/26/09), applications due for all entities 6/25/09 [state applications had been due on 5/26/09]

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$3.1 billion provided for State Energy Program (SEP) SEP received $44 million in federal fiscal year 2008 Funds provided to state energy offices Governors must send letter to Energy Secretary Chu regarding utility regulatory

policies on energy efficiency and upgrading of building energy efficiency codes

Funding can be used for a wide variety of programs, projects & policies, including: Energy efficiency Renewable energy Alternative transportation programs

ARRA waived a 20% cost share for the states and also waived a regulatory provision that limited capital investments to 50% SEP funds.

Operated by the Office of Weatherization and Invergovernmental Programs (OWIP) within the Office of Energy Efficiency and Renewable Energy (EERE).

Find your state energy director at www.naseo.org [David Terry – dterry@naseo.org]

DOE Funding Opportunity Notice (DE-FOA-0000052 Issued 3/12/09, initial state applications due 3/23/09 and comprehensive applications due 5/12/09)

State Energy Program

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Weatherization Assistance Program

$5 billion is provided for the Weatherization Assistance Program (WAP) WAP received $227 million in federal fiscal year 2008

ARRA statutory changes: Amount that can be spent on each home increased from $2,500 to $6,500, to allow

more comprehensive energy efficiency measures to be implemented Eligibility increased to 200% of poverty, from 150% of poverty

Preference for community action agencies to serve as delivery agents for WAP, but to expand the program, local government coordination and/or delivery is expected

National Association for Community Services Programs (NASCSP) coordinates state-level program managers [Rebecca Stewart – rstewart@nascsp.org]

National Community Action Foundation (NCAF) represents community action agencies

DOE Funding Opportunity Notice (DOE-FOA-0000051 Issued 3/12/09, initial state applications due 3/23/09 and comprehensive applications due 5/12/09)

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Energy Star Appliance Rebates Program

$300 million is provided to state energy offices to provide rebates to encourage consumers to purchase Energy Star appliances Program has not previously been funded

Contact your state energy office

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Smart Grid – Regional Demonstration

$4.5 billion is provided for investments in the “smart grid,” as authorized by Title XIII of the Energy Independence and Security Act of 2007 (EISA)

Expected to include advanced metering and demand response equipment, as well as other measures

Funding open to utilities (including public power, cooperatives and investor-owned utilities) and “other parties” involved in smart grid development

Minimum 50% cost-sharing requirement (greater % encouraged), including regional demonstrations, utility scale energy storage demonstrations, etc.

Operated by the DOE Office of Electricity Delivery and Energy Reliability

Additional $100 million allocated through this office for “Green Jobs” initiative

Draft Funding Opportunity Notice [DE-FOA-0000036] for regional demonstrations, utility scale storage demonstrations and synchrophasor demonstrations – issued 4/16/09. Comments were due 5/6/09. Final FOA anticipated no earlier than June 17, 2009.

Maximum award: recently increased from $40 M to $100 M

DOE favors diversity of projects, small and large

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Smart Grid – Investment Grants

Notice of Intent to Issue a Funding Opportunity Announcement issued Expected to include equipment that will improve reliability, efficiency and

security of the grid; goal is to achieve open-system architecture with microprocessor-based advanced digital technology

Comments were due by May 6, 2009

Maximum award: recently increased from $20 M to $200 M

Minimum 50% cost-sharing requirement (greater % encouraged), including regional demonstrations, utility scale energy storage demonstrations, etc.

Eligible entities: utilities including municipally-owned utilities, investor-owned, and rural cooperatives; load serving entities; retail electricity marketers/distributors; system operators; and manufacturers of smart grid-enabling equipment

Final FOA expected: June 17, 2009

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Smart Grid and FERC

Federal Energy Regulatory Commission (FERC) Policy Statement and Action Plan (Smart Grid Policy, 126 FERC ¶ 61,253)

Request for comments on Smart Grid Policy Comments were due: May 11, 2009

Request for supplemental comments on treatment of rate recovery for certain smart grid investments funded via DOE funding opportunities (FERC Docket No. PL09-4) Comments due: May 28, 2009 (extended to June 2, 2009)

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HUD Assisted Housing

$2.25 billion is provided for the HOME Investment Partnerships Program at HUD

Funds are provided to state housing finance agencies for low-income housing The program encourages funding for energy efficient and environmentally

friendly designs

$250 million is provided for energy retrofit and green investments for certain kinds of low-income housing

$2.25 billion is provided more generally for project-based rental assistance

$1 billion is provided for the Public Housing Capital Fund for competitive grants Includes investments that leverage private sector funding or financing for

renovations and energy conservation retrofit investments Notice of Funds Availability (NOFA) issued May 7, 2009:

applications accepted between June 1 – July 21, 2009 for energy conservation retrofit applications

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Clean Cities and Plug-in Vehicles

$300 million is provided for the Clean Cities Program Program has previously been funded at much lower levels Funds available to states, local governments and metropolitan

transportation agencies for up to 30 geographically dispersed vehicle demonstrations

Supports alternative fuel vehicles, neighborhood electric vehicles, fuel cell vehicles, ultra low sulfur diesel vehicles, acquisition and installation of fueling infrastructure, etc.

50% cost-sharing requirement DOE Funding Opportunity Notice [DE-PS26-09NT01236-04].

Round 1 Application Due 5/29/09, Round 2 Application Due 9/30/09.

$400 million is provided for transportation electrification for local, metropolitan transportation agencies and state grants for qualified electric transportation projects Can be used for truck stop electrification, etc. DOE Funding Opportunity Notice [DOE-FOA-0000028] Issued

3/19/09. Round 1 Application Due 5/13/09 (Round 2 – TBD: based on outcome of Round 1 and available funds)

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Schools

No specific funding for energy efficiency in schools Encourages schools to be modernized

“consistent with a recognized green building rating system”

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Federal Buildings

$4.5 billion is provided to the General Services Administration for high performance green buildings

$3.24 billion is provided to the Department of Defense to “repair and modernize facilities, restore and modernize real property and invest in the energy efficiency of facilities”

$1 billion is provided to the Veterans Administration of “non-recurring maintenance including energy projects”

$220 million is provided for military construction energy projects

If you have any federal facilities in your service area, you may be able to work with those agencies on these projects

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ARRA Timelines

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Energy Efficiency and Conservation Block Grant

DOE Funding Opportunity (DE-FOA-0000013) (Issued 3/26/09, revisions 4/13/09, 4/24/09, 5/11/09)

State applications due 6/25/09; Local government and tribal applications due 6/25/09; 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); and

Total available $3.2 billion.

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State Energy Program DOE Funding Opportunity Notice (DE-FOA-

0000052)(Issued 3/12/09, amended 3/19/09 and 4/24/09)

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

Virtually all states, territories and DC have submitted Governors’ assurance letters as of 4/7/09 (Governor of Alaska has turned down energy money).

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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

http://waptac.org

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Energy Star Appliance Rebates Program

No Funding Opportunity Notice issued yet [$300 million]

Operated by Department of Energy, Energy Efficiency and Renewable Energy Office

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“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),

Draft Funding Opportunity Notice issued 4/16/09, with comments due 5/6/09 and anticipated Final FOA no earlier than mid-June, 2009;

Separate announcement for investment grants in advanced metering and demand response equipment – Section 1306 - EISA

Operated by Department of Energy, Office of Electricity Delivery and Energy Reliability

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“Green Jobs”

$100 million through Department of Energy, Office of Electricity Delivery and Energy Reliability, and associated with “Smart Grid” (no announcement yet) $5 million for regional resources and training in solar

infrastructure and marketing (in addition to $22 million in DOE annual appropriations) [DE-FOA-0000078: due by July 30, 2009]

$750 million through the Department of Labor [anticipated RFPs by June 30, 2009]

Up to $1 billion for Training and Technical Assistance associated with the Weatherization Assistance Program

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Energy RDD&D - $2.5 Billion $800 M for Biomass through DOE, Energy Efficiency and Renewable Energy Office

[FOAs on expansion of ethanol blends infrastructure and development of algal biofuels expected late summer 2009]

$480 M available for integrated biorefinery projects [DE-FOA-0000096] –due June 30, 2009 $400 M for Geothermal through DOE, Energy Efficiency and Renewable Energy

Office $150 M: (i) Recent funding increase from $10 M to $90 M: Enhanced geothermal

demonstration projects for reservoirs capable of producing up to 50 MW per year [DE-FOA-0000092] – due July 30, 2009; (ii) Recent funding increase from $10 M to $56 M: Geothermal Components R&D [DE-FOA-0000075] – due July 17, 2009

$200 M: Geothermal technologies program (exploration, production and data management): [DE-FOA-00000109] – due by July 22, 2009

$50 M: Geothermal Heat Pumps demonstration projects and data analysis [DE-FOA-00000116]

$256 M for Industrial programs through DOE, Energy Efficiency and Renewable Energy Office:

$ 156 M for combined heat and power, 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) [DE-FOA-0000044] – applications due July 14, 2009

$117.6 M for accelerating solar deployment: $40.5 M for Solar Market Development (includes $10 M for Solar America Cities program and

$5 M for solar jobs training) [DE-FOA-0000078] - due by July 30, 2009 $77.1 M for photovoltaic research, development and deployment [DE-FOA-0000085] - due by

July 30, 2009] $93 M for Wind Power R&D:

$24 M for projects with academia and industry consortia [DE-FOA-0000090] – due by July 29, 2009

Expected upcoming FOAs may include R&D and testing of wind turbine drivetrains Remainder of funds unallocated

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“Clean Cities”

DOE Funding Opportunity Notice (DE-PS26-09NT01236-04)

Round 1 state/local consortium applications due 5/29/09 – Area of Interest 4[$300 million]; Round 2 applications due 9/30/09

Operated by Department of Energy, Energy Efficiency and Renewable Energy Office

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Transportation Electrification

DOE Funding Opportunity Notice (DE-FOA-0000028)(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-0000026)(Issued 3/19/09, closing date 5/19/09).

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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.

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Resources

http://www.recovery.gov (Government-wide sources) http://www.energy.gov/recovery (Department of Energy) https://e-center.doe.gov http://www.treasury.gov/recovery (tax issues) http://www1.eere.energy.gov/informationcenter/ (1-877-

EERE-INF)(1-877-337-3463) http://grants.gov/GetStarted (register)

In order to register directly, you will need to obtain a Dun and Bradstreet Number – Dun and Bradstreet Date Universal Numbering System (DUNS) site; Complete a Central Contractor Registration; Register with FedConnect.

http://naseo.org – National Association of State Energy Officials

http://www.aceee.org/energy/national/recovery.htm American Council for an Energy Efficient Economy

http://naruc.org – National Association of Regulatory Utility Commissioners

http://drsgcoalition.org – Demand Response and Smart Grid Coalition

http://waptac.org – Weatherization Assistance Program