Energy Components of the American Recovery and

Reinvestment Act of 2009

Larry Shirley State Energy Office

April 14, 2009

State Energy Office

Created in 1973 by the Arab Oil Embargo Department of Administration Lead State Agency for Energy with a focus on:

» Energy Policy» Energy Efficiency» Renewable Energy» Alternative Fuels» Energy Emergency Response

Funding: State Appropriations and Federal Funds

State Energy Office

Utility Savings Initiative for Public Buildings

State Fleet Efficiency and Fuels

Energy Loan Fund Industrial Efficiency Solar & Wind

Alternative Fuels Biomass Energy Manufactured

Housing State Energy

Conference Energy Audits & TA Consumer Outreach

$3.1 billion provided for State Energy Program (SEP)

SEP received $50 million in federal year 2008-09

Funds provided to State Energy Offices

State Energy Office to receive $75.9 million

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

State Energy ProgramARRA

Potential Focus AreasState Energy Program

North Carolina has identified five focus areas for utilizing ARRA funds through our State Energy Program:

Supporting Small Businesses and Industry through Energy Savings Growing North Carolina’s Green Workforce Improving Government Energy Efficiency Promoting Residential Energy Efficiency and Renewable Energy Fostering Renewable Energy Technology and Resource Innovation

Targeted EffortsState Energy Program

North Carolina will seek to work with strategic partners in the public and private sectors and to coordinate with other funding streams, including those provided through the ARRA, to maximize available funding and drive job creation.

Energy Efficiency and Conservation Block Grant

$3.2 billion is provided for the Energy

Efficiency and Conservation Block Grant.

» EECBG had not previously been funded» Operated by OWIP under EERE

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

Energy Efficiency and Conservation Block Grant

Of the remaining $2.8 billion, funds will be distributed:» 68% directly to over 1,700 larger cities in the

U.S» 16% through the states to counties under

200,000 and towns under 35,000» 12% directly to State Energy Offices for State

Energy Program» 2% for competitive program» 2% available to tribes

EECBG Direct Funding for NC: $58,050,300State Energy Office $20,925,300

Asheville 804,700

Burlington 223,900

Cary 1,166,800

Chapel Hill 554,900

Charlotte 6,780,100

Concord 638,800

Durham 2,173,600

Fayetteville 1,652,900

Gastonia 705,700

Goldsboro 183,600

Greensboro 2,554,900

Greenville 777,600

Hickory 209,300

High Point 998,600

Huntersville 175,100

Jacksonville 781,600

Kannapolis 170,300

Raleigh 3,820,400

Rocky Mount 572,100

Wilmington 1,039,900

Wilson 214,900

Winston-Salem 2,262,000

Buncombe 624,800

Cumberland 590,700

Davidson 631,100

Gaston 525,600

Iredell 645,100

Johnston 636.200

Mecklenburg 649,500

Randolph 578,200

Union 751,800

Wake 3,030,300

Cherokee Indians 253,100

EECBG Funding for NC

Funding for Smaller Cities and Counties: $12,555,180

Funding Likely to be Competitive Funding for State Energy Program:

$8,370,120

EECBG Timeline State Energy Office application is due May 26, 2009 Directly funded Cities’ and Counties’ applications are

due June 25, 2009 The Secretary of DOE has up to 120 days to review

and comment on applications The SEO shall provide subgrants no later than 180

days after the date on which the Secretary approves the application.

Funds are required to be obligated within 18 months The period of performance is 36 months.

EECBG AwardsFunds can be used in conjunction with other

funding as necessary to complete projects, but tracking and reporting must be separate.

Special consideration will be given to projects that promote and enhance the objectives of the Act, especially job creation, preservation, and economic recovery, in a expeditious manner.

No more than 10% of amounts provided can be used for administrative expenses.

Energy Independence and Security Act of 2007

Energy Efficiency and Conservation Block Grant Program» To reduce fossil fuel emissions» To reduce the total energy use of eligible

entities» To improve energy efficiency in

transportation, building and other appropriate sectors

Energy Efficiency and Conservation Block Grant Program: Use of Funds

» Develop and implement an energy efficiency and conservation strategy.

» Retain technical consultant services to assist in the development of such a strategy.

» Conduct residential and commercial building energy audits.

» Establish financial incentive programs for energy efficiency improvements.

Energy Efficiency and Conservation Block Grant Program: Use of Funds

» Provide grants to nonprofits and governmental agencies for energy efficiency retrofits.

» Implement energy efficiency programs for buildings within the jurisdiction of the entity.

» Implement programs to conserve energy used in transportation.

» Implement building codes and inspection services to promote building energy efficiency.

Energy Efficiency and Conservation Block Grant Program: Use of Funds

Energy distribution technologies that significantly increase energy efficiency.

Increase participation and efficient rates for material conservation programs.

Use of technologies to reduce, capture and use methane generated by landfills or similar sources.

Replacement of traffic signals and street lighting with energy efficient lighting technologies.

Install renewable energy technology on government buildings to generate electricity.

Energy Efficiency and Conservation Block Grant Program: Requirements

Energy Efficiency Strategy: Submit at time of application or within 120 days of award

Approval of the strategy by DOE Annual reporting on the status of the

strategy and assessment of energy efficiency gains

Energy Star Appliance Rebates Program

$300 million will be provided to state energy offices to provide rebates to encourage consumers to purchase Energy Star appliances.

» Program has not previously been funded

Program requires a 50% match

Awaiting guidance from DOE

Green JobsARRA

$500 million provided for the “Green Jobs” initiatives created by Sections 1001 and 1002 Energy Independence and Security Act

Funds to be spent on initiating a worker training program for energy efficiency and renewable energy

Operated by the U.S. Department of Labor

$100 million also provided for worker training under the Smart Grid initiative

Smart GridARRA

$4.4 billion is provided for investment in the “smart grid” as authorized by Title XIII of the Energy Independence and Security Act of 2007

Funding open to utilities and “other parties” involved in smart grid development

50% cost-sharing requirement, including regional demonstrations, utility scale energy storage demonstrations, etc.

Operated by the DOE Office of Electricity Delivery and Energy Reliability

Notice of Intent to Issue Funding Opportunity Notice issued 3/2/09

SchoolsARRA

No specific funding for energy efficiency in schools

»Encourages schools should be modernized “consistent with a recognized green building rating system”

Federal BuildingsARRA

$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.

Clean Cities and Electric Vehicles ARRA

$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» Applications due May 29, 2009

Electric Vehicles

$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»Can be used for plug-in EVs and charging

stations

Energy RDD&DARRA

$2.5 billion is provided to the Energy Efficiency and Renewable Energy Division for Research, Development, Demonstration and Deployment Programs

$800 million for biomass $400 million for geothermal DOE IS allocating funds for a variety of other uses

(e.g., industrial energy efficiency programs)

Tax ReliefEmergency Economic Stabilization Act of 2008

Extension & modification of the Production tax credit (wind and biomass)

Expansion of allowance for cellulosic biofuels property

Qualified energy conservation bonds Long term extension of energy investment

tax credits

Tax relief

Extension of biodiesel production tax credit

Extension and modification of credit for energy efficiency improvements to existing homes

Long term extension and modification of residential energy efficient property credit

Extension and modification of alternative fuels credit

Tax Relief

Extension of Energy Efficient buildings deduction

New Renewable Energy bondsPlug in electric drive vehicle tax

credit

Unprecedented Accountability In most instances funds will be distributed through

existing formulas to programs with proven track records and accountability measures already in place.

How funds are spent, all announcements of contract and grant competitions and awards, and formula grant allocations must be posted on a special website created by the President www.recovery.gov.

North Carolina has its own recovery website:www.ncrecovery.gov.

Accountability

Governors, mayors or others making funding decisions must personally certify that the investment has been fully vetted and is an appropriate use of taxpayer dollars.

Preparation

Forklift Ready Organize to develop local conservation

strategy Focus on job creation, energy savings,

renewable energy generated and emission reductions

Contact Information

State Energy OfficeN.C. Department of Administration1830A Tillery PlaceRaleigh, NC 27604-1376

Mailing Address: 1340 Mail Service CenterRaleigh, NC 27699-1340

919-733-2230-telephone 919-733-2953-fax

www.energync.net