American Recovery and Reinvestment Act of 2009 Public Affairs Roundtable Breakfast June 4, 2009 One Commerce Plaza Albany, New York 12260 P 518.487.7600.

American Recovery and Reinvestment Act of 2009

Public Affairs Roundtable Breakfast June 4, 2009

One Commerce Plaza

Albany, New York 12260

P 518.487.7600

F 581.487.7777

www.woh.comCopyright ©2009 Whiteman Osterman & Hanna LLP.

All rights reserved.

Bridges and Roads

Federal legislation authorized $27.5 billion for highway infrastructure improvements

New York’s share was $1.12 billion

Most of the funding then distributed through NYSDOT’s standard allocation process

Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

Bridges and Roads, cont’d.

Grants for Transportation Investment Generating Economic Recovery (TIGER) Discretionary program administered by USDOT

Secretary Can be used for highway and bridge projects,

public transportation projects, passenger and freight rail projects

Minimum project size is $20 million, max is $300 million

Grant applications due by September 15, 2009


Criteria for projects Long-term outcomes Job creation and economic stimulus Innovation Partnership

Applications will need to include analysis of costs/benefits, job creation, shovel-readiness, etc.

Priority given to projects that can be completed by February 17, 2012

Bridges and Roads, cont’d.


Sewer and Water

Federal legislation authorized $6.4 billion in clean water funding

New York received over $500 million for the Clean Water and Drinking Water Revolving Funds

Most funding allocated by position on the Intended Use Plan


Sewer and Water, cont’d.

Future funding of projects on Intended Use Plan may get easier

Natural Resources Conservation Service (NRCS) - technical assistance for watershed projects

USDA’s Rural Utilities Service – grants and loans for municipalities of less than $10,000


Sewer and Water, cont’d.

Clean Water Act Section 604(b) projects Eligible applicants include regional public planning

organizations (including interstate organizations) Priorities

Green infrastructure Total Maximum Daily Load planning Phase II Stormwater for Municipal Separate Storm Sewer

Systems (MS4s) and construction planning activities Water quality management planning activities

Application due July 10, 2009


Broadband Access

Broadband Technology Opportunity Program Federal legislation authorized $4.7 billion Funding being distributed by the U.S. Department of

Commerce: National Telecommunications and Information Administration (NTIA)

Eligible entities State or political subdivision Non–profit foundations, corporations, institutions, or associations,

or any other entity in the public interest First Round Grant RFP to be issued in June


Broadband Access, cont’d.

Rural Utilities Service - Distance Learning, Telemedicine & Broadband Program Federal legislation authorized $2.5 billion Program to be administered by the Rural Utilities

Service (USDA) Eligible Applicants:

Public and private entities who provide telephone or broadband services in rural areas

75% of the area to be served is in a rural area with insufficient access to high speed broadband service

Being implemented in cooperation with NTIA; no RFPs issued or application deadlines set


Housing and Urban Development

Neighborhood Stabilization Program $2 billion allocated in Act Funds being distributed by HUD Goals

Establish financing mechanisms for purchase and redevelopment of foreclosed homes

Purchase and rehabilitate homes and residential properties abandoned or foreclosed

Establish land banks for foreclosed homes Demolish blighted structures


HUD, cont’d.

Neighborhood Stabilization Plan, cont’d. Eligibility: States, local governments, non-profits Recipients have flexibility in developing programs

and funding priorities, but 25% must be used for purchase and redevelopment of abandoned or foreclosed homes for low to moderate income persons

Application due date: July 17, 2009


HUD, cont’d.

Green Retrofit Program for Multifamily Housing Federal legislation authorized $250 million

Estimated $85 million for grants Estimated $150 million for loans Estimated $15 million for training, monitoring, etc.

HUD’s Office of Affordable Housing Preservation is distributing funds


HUD, cont’d.

Green Retrofit Program for Multifamily Housing, cont’d. Eligible Applicants for Grants or Loans

Owners of Section 202 projects (32 unit minimum) Owners of Section 811 projects (8 unit minimum) Owners of Section 8 projects (20 units if it has USDA loans, and

72 units without)

Other owners may be eligible for loans only


HUD, cont’d.

Green Retrofit Program for Multifamily Housing, cont’d. Intent of grants/loans are to allow owners to make

retrofits to improve building efficiency Expected award is up to $15,000 per unit Applications accepted beginning 6/15, awards

granted on first-come, first-served basis (subject to HUD due diligence/financial analysis)


HUD, cont’d.

Public Housing Capital Fund Federal legislation authorized $4 billion

$3 billion allocated by formula $1 billion awarded by competition

Funds being allocated by HUD’s Office of Public and Indian Housing

Applications accepted from 6/1 to 7/21 or from 6/1 to 8/18 depending on category


HUD, cont’d.

Public Housing Capital Fund, cont’d. Eligible Applicants

Public Housing Agencies Own or operate low-income public housing

Funding categories Addressing needs of elderly or disabled Public Housing Transformation Gap Financing for Stalled Projects Energy Efficient, Green Communities


Economic Development Assistance Program

$150 Million allocated to this Program

Funds being distributed by the U.S. Commerce Department (Economic Development Administration)


Economic Development Assistance Program, cont’d.

Program goal: To provide economic stimulus to regions that have experienced sudden and severe economic dislocation and job loss

Provides funding for construction or rehabilitation of essential public infrastructure and facilities, and develop regionally focused economic recovery and growth strategies

50% cost sharing requirement (may be satisfied by in-kind contributions)


Eligible Applicants State, city, or other political subdivisions Regional organizations Institutions of higher education Must meet certain “economic distress criteria”

Unemployment rate 1% higher than National average Per capita income 80% or less of National average “Special Need” community

Economic Development Assistance Program, cont’d.


Clean Fleets

Alternative Fuel and Advanced Technology Vehicles Pilot Program Federal legislation authorized $300 million Program being administered by DOE Reimburses grantee for incremental cost to

purchase new alternative fuel vehicles Award size expected to be between $5 million

and $15 million per project


Clean Fleets, cont’d.

Alternative Fuel and Advanced Technology Vehicles Pilot Program, cont’d Eligible Applicants

State or Local Governments Metropolitan Transportation Authority

50% cost share required Selection criteria: petroleum reduction, emissions

reductions, ease of implementation Applications due September 30, 2009


Weatherization

$5 billion authorized for weatherization projects under the Act

New York share: $394.6 million Being distributed through existing

Weatherization Assistance Program (WAP) DHCR receives funds, distributes to its

network of subgrantees for implementation Eligibility: Any household at 200% of federal

poverty guideline; up to $6,500 per homeCopyright ©2009 Whiteman Osterman & Hanna LLP.

All rights reserved.

Websites

http://recovery.ny.gov http://www.recovery.gov


Peter Trimarchi, Esq.Whiteman Osterman & Hanna LLP(518) [email protected]


Stimulus Funding for Energy and Energy Efficiency

Public Affairs Roundtable Breakfast June 4, 2009


ARRA Tax Credits

Treasury Grants instead of Production Tax Credits for projects where construction started in 2009 or 2010

Temporarily replaces tax equity market that has disappeared

Makes deal simpler Decreases financing costs Three year extension of the Production Tax Credit (PTC)

for wind facilities placed in service by 12/31/12; and geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities placed in service by 12/31/13 (solar already extended in last congress)


ARRA Tax Credits

Investment Tax Credit (ITC) expanded from wind and solar to geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities

Advance Energy Manufacturing ITC (30% up to $2.3 billion) for investment in advanced energy manufacturing

Extends the bonus depreciation of 50% that Congress enacted last year through 2009 . These write offs can be applied to capital expenditures ranging from $250,000 to a newly increased threshold of $800,000


ARRA Direct Spending

$16.8 billion Total Direct Spending for Renewable Energy and Energy Efficiency programs over next ten years

$11 billion to modernize the nation's electricity grid with smart grid technology

$2.5 billion for renewable energy and energy efficiency R&D, demonstration and deployment activities

$2 billion for grants for the manufacturing of advanced batteries and components. This includes the manufacturing of advanced lithium ion batteries, hybrid electrical systems, component manufacturers, and soft-ware designers

$300 million to the DOD for research, testing and evaluation of projects to energy generation, transmission and efficiency

$100 million for Navy and Marine Corps facilities to fund energy efficiency and alternative energy projects.


ARRA Bond and Loan

$1.6 billion of new clean energy renewable bonds (CREBS) to finance wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities

One third of the authorized funding will be available for qualifying projects of state/local/tribal governments, one-third for public power providers and one-third for electric cooperatives

$6 billion temporary loan guarantee program for renewable energy power generation and transmission projects that begin construction by 9/30/11 up to $500 million of the overall $6 billion can be used for the development of

leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce greenhouse gas emissions

expected to create over $60 billion in private financing


NYSERDA

Block Grant Funding

Ener

gy S

tar

State

Energy

Plan


NYSERDA’s Role

$123mm to fund state energy plan (SEP), which means funding for: increase energy efficiency to reduce energy costs and

consumption for consumers, businesses and government; reduce reliance on imported energy; improve the reliability of electricity and fuel supply and the

delivery of energy services; and reduce the impacts of energy production and use on the

environment.


NYSERDA’s Role Con’t

More specifically, activities carried out and results achieved with SEP ARRA funding will be assessed according to the following performance metrics: Jobs created Energy saved (kWh/therms/gallons/Btus/etc.) Renewable energy installed capacity and generated GHG emissions reduced (CO2 equivalent)

Energy cost savings Funds leveraged

Funds will be made available through a competitive bid program through NYSERDA

See http://www.nyserda.org/Economicrecovery/sep.asp for more info.


NYSERDA’s Role Con’t

Energy Efficiency and Conservation Block Grants $175,122,300 $17,856,360 to NYSERDA small municipalities $11,904,240 to NYSERDA all municipalities $23,739,000 to 10 largest count $121,622,700 to 44 large cities/towns

Large city, county, and tribal organization applications due to DOE by 6/25/09

NYSERDA will solicit applications for projects from small municipalities following DOE approval of Plan


NYSERDA Role Con’t

Energy Efficiency Appliance Rebate Program and the ENERGY STAR® Program - $300,000,000 Pending issuance of funding opportunity by DOE NYSERDA will receive funds from DOE and structure program for

distribution

Electricity Delivery and Energy Reliability – $4,500,000,000, New York State Share from competitive grants to be determined DOE issued FOA for Synchrophasor Research on 3/27/09; applications

due on 5/27/09 DOE issued Notice of Intent to issue funding opportunity for Smart Grid

Investment Grant Program on 4/16/09; applications available on 6/17/09; applications due on 7/29/09


Division of Housing and Community Renewal

Weatherization New York received $98.8 million in regular program funding

for the 2009-2010 Program Year. This amount included $36.6 million in DOE funds and $62.2 million of new HEAP funds.

The ARRA will provide an additional $394,686,513 in DOE program funds.

Distributed to counties by formula.

http://www.dhcr.state.ny.us/Publications/WeatherizationRecoveryActFundingPlan/Weath_ARRA_Plan.pdf


Renewable Energy Provisions

American Recovery and Reinvestment Act of 2009 Helpful websites:

http://www.recovery.ny.gov/ http://www.nyserda.org/pdfs/EconomicStimulusFunding.pdf http://www.nyserda.org/economicrecovery/default.asp

The full text of the tax provisions in the stimulus package can be found here. http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf

The full text of the appropriation provisions in the stimulus package can be found here. http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf


Catherine Hill, Esq.Whiteman Osterman & Hanna LLP(518) [email protected]


American Recovery and Reinvestment Act of 2009 Public Affairs Roundtable Breakfast June 4, 2009 One Commerce Plaza Albany, New York 12260 P 518.487.7600.

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