Howard Marks, U.S. DOE

The American Recovery and Reinvestment Act:

A Foundation for Our Energy Future

Howard MarksLegislative Advisor

Office of Energy Efficiency and Renewable EnergyU.S. Department of Energy

Representative Linda Sanchez’s Energy Stimulus Workshop

Paramount, California Thursday, July 30, 2009

The American Recovery andReinvestment Act of 2009 (Recovery Act)

• President Obama signed this unprecedented effort into law on February 17, 2009– Jumpstarts our economy, creates or

saves millions of jobs, and puts a down payment on long-term challenges

– Requires the hard work and collaboration of homeowners, scientists, local and state governments, small businesses, industry, and many others

The Department of Energy's Role Is Critical

• Transform the way we use energy

• Help reduce carbon emissions• Create entire new industries

based on our nation's resources, ingenuity, and workers

• Turn economic crisis into an opportunity to build a clean, secure, and prosperous energy future

Energy Efficiency and Renewable Energy (EERE) Recovery Act Funding

EERE RD&D $2.5B

Biomass $800M

Geothermal $400M

Information & Communications Tech. $50M

EERE Discretionary Funding $1.25B

Energy Efficiency Conservation Block Grants $3.2B

State Energy Program $3.1B

Weatherization Assistance $5.0B

Energy Efficient Appliance and ENERGY STAR Rebates $300M

Alternative Fuel Vehicle Grant Program $300M

Advanced Battery Manufacturing Grants $2.0B

Transportation Electrification Grants $400M

EERE Total: $16.8B

EERE - Who Are We?• Power Generation

– Wind/Water

– Solar

– Geothermal

• Fuels & Vehicles– Vehicle Technologies

– Biomass/Biofuels

– Hydrogen

• Energy Efficiency – Buildings Technologies

– Industrial Technologies

– Weatherization/Intergovernmental

– Federal Energy Management

We manage America’s investment in the research, development and deployment of DOE’s diverse energy efficiency and renewable energy applied science portfolio.

Total California Formula Funding under the Recovery Act

$1.21 Billion

The State Energy Program - $3.1B Nationally $226M for California

• Congress created the State Energy Program (SEP) to – Encompass renewable energy and energy efficiency

technologies in all economic sectors

– Funds states to carry out their own clean energy programs

• States encouraged to choose activities with broad and lasting impacts on energy use within the state– Transform markets

– Revolving loans, on-bill financing strategies, performance contracting

Weatherization Assistance Program - $5B Nationally$185M for California

• Helps low-income households improve the efficiency of their homes, including air-conditioning

• Funds are allocated to the states, which distribute funds to local agencies

• Recovery Act Changes to Program– Eligible income level amended from 150% of poverty to 200%– Average funding per home was raised from $2,500 to $6,500– Training & Technical Assistance cap raised from 10% to 20%

To apply for assistance, contact the Dept. of Community Services and Development

(866) 675-6623P.O. Box 1947

Sacramento, CA 95812-1947

Energy Efficiency and Conservation Block Grants Program - $3.2B Nationally,

$351.6M for California

• Formula grants primarily for energy efficiency and conservation– Community-wide; not just municipal buildings and facilities– Do not have to fund capital projects, can fund programs– Prioritize activities that pay dividends year after year

• Formula grants ($2.8B)– For states, cities, counties, and tribes

• Competitive grants ($456M)– Details will be available in a forthcoming Funding Opportunity Announcement

Application Deadline Extended to August 10, 2009

Secretary Chu on the Block Grants “The Block Grants are a major

investment in energy solutions that will strengthen America’s economy and create jobs at the local level. The funding will be used for the cheapest, cleanest and most reliable energy technologies we have – energy efficiency and conservation – which can be deployed immediately.  The grants also empower local communities to make strategic investments to meet the nation’s long term clean energy and climate goals.”

- Secretary Steve Chu

EECBG Allocations

EECBG Allocations Continued

Eligible Uses of EECBG Funds

1. Strategy Development

2. Building Energy Audits & Retrofits

3. Financial Incentive Programs

4. Energy Efficiency and Conservation Programs for Buildings and Facilities

5. Development and Implementation of Transportation Programs

6. Building Codes and Enforcement

7. Energy Distribution Technologies for EE including CHP & district heating and cooling

Eligible Uses of EECBG Funds

8. Material Conservation Programs including source reduction, recycling, and recycled content procurement programs

9. Reduction and Capture of Methane and Greenhouse Gases

10. Traffic Signals and Street Lighting

11. Renewable Energy Technologies on Government Buildings

12. Any Other Appropriate Activity

Limitations on the Use of EECBG Funds

• States– Sub grant at least 60% to ineligible towns and counties

– If your town was not allocated formula funds, contact the Maryland Energy Administration to inquire about obtaining funds.

• Local Governments and Tribes– Cap on administrative costs, excluding reporting: 10% or $75,000,

whichever is greater

– Cap on revolving loan funds: 20% or $250,000, whichever is greater

– Cap on sub grants to non governmental organizations for assistance in implementation of strategy: 20% or $250,000, whichever is greater

Reporting and Measuring Success

• Outcome metrics:– Jobs created and/or retained– Energy saved– Renewable energy capacity installed– Green House Gas emissions reduced– Funds leveraged

• Web-based reporting system under development• Individual output metrics based on activity type• Additional guidance will be released

Staged Disbursement of FundsAward Range Amount Obligated Requirements

$0 to $250K 100% of allocation will be disbursed at time of award.

No Energy Efficiency and Conservation Strategy (EECS) is required prior to award, but EECS must be submitted within 120 days of the effective date of the award.

$250K to

$2 million

Applicants may receive up to $250K for development of the EECS and approved activities.

• If the EECS is not submitted with the application, it’s required within 120 days of the effective date of the award• The balance of the allocation will be obligated upon DOE’s approval of the recipient’s EECS.

Over $2 million Applicants may receive up to $250K at time of award for development of the EECS and approved activities or 50% of the total allocation if an acceptable EECS has been submitted with the application and has been approved by DOE.

The balance of funding will be obligated after one or more progress reviews in which the recipient must demonstrate that it has obligated funds appropriately, complied with reporting requirements, and created jobs.

Recovery Act Appliance Rebate Program - $300M

• Offers funding for rebate programs in 50 states – States must apply for the

money

• Will increase consumer awareness of energy efficient choices to save energy and money

Clean Cities - $300M

• Clean Cities Alternative Fueled Vehicles Pilot Grant Program

• Round 1 is now closed, but there may be a Round 2 in September

• Clean Cities Coalitions in SoCal: Los Angeles, Long Beach, Antelope Valley (Lancaster), San Diego Region, Southern California Association of Governments (SCAG)

Vehicle Technologies - $110M

• Investment of up to $240M for the development of high efficiency commercial and passenger vehicles

• Funding includes approximately $110M from the Recovery Act, combined with DOE annual appropriations

• Funding solicitations are divided into two areas:– System level technology development, integration, and

demonstration for efficient Class 8 trucks

– Advanced technology powertrains for light-duty vehicles

Industrial Technologies - $256M

• $156M for Combined Heat and Power, District Energy Systems, Waste Energy Recovery Systems, and Efficient Industrial Equipment– Proven near-term energy options to enhance energy efficiency

and promote economic growth

• $50M for Improved Energy Efficiency for Information and Communication Technology

• $50M for Advanced Materials in Support of Advanced Clean Energy Technologies and Energy-Intensive Processes– RD&D for advanced industrial materials that can be used in a

variety of applications

• $480M Solicitation for Integrated Pilot- and Demonstration-Scale Biorefineries– 10-20 awards for refineries to be operational in the next 3 years

• $177M for Commercial-Scale Biorefinery Projects• $110M for Fundamental Research in Key Program Areas • $20M for Ethanol Research

– Optimize flex fuel vehicles operating on high octane E85 fuel– Evaluate the impact of higher ethanol blends in conventional

vehicles– Upgrade fueling infrastructure to be compatible with fuels up to E85

• Integrated Biorefinery Research Facility at National Renewable Energy Laboratory

Biomass Solicitations - $800M

• $100M for Advanced Building Systems Research

• $70M for Residential Buildings Development and Deployment

• $53.5M for Commercial Buildings Initiative

• $72.5M for Buildings and Appliance Market Transformation

• $50M for Solid State Lighting R&D

Energy Efficient Buildings and Components - $346M under the Recovery Act

Wind Energy Projects - $118M

• $45M for Wind Turbine Drivetrain R&D and Testing

• $14M for Technology Development• $24M for Wind Power R&D

Geothermal Technologies - $400M• $140M for Geothermal Demonstration Projects

– Demonstrations of cutting-edge technologies to advance various approaches to accessing geothermal resources

• $80M for Enhanced Geothermal Systems R&D• $100M for Innovative Exploration Techniques

– Projects that include exploration, siting, drilling, and characterization of a series of exploration wells utilizing innovative techniques

• $30M for National Geothermal Data System, Resource Assessment, and Classification System

• $50M for Geothermal Heat Pumps– Innovative technology demonstrations, life cycle cost tools, and

national certification and accreditation

Solar Energy Technologies - $176.5M

• $51.5M for Photovoltaic (PV) Technology Development

• $40.5M for Solar Energy Deployment

• $25.6M for Concentrating Solar Power (CSP) R&D

• To modernize the hydropower in the U.S., increase efficiency, and reduce environmental impact

• Funding opportunity open to existing non-federal hydroelectric facilities

• Projects will be selected in two areas: large-scale (>50MW) and small-scale (<50MW)

Hydropower Upgrades - $32M

Smart Grid Funding (Office of Electricity)

• Essential to expanding renewable energy and efficiency• Smart grid: an automated electric grid designed to be

flexible and maximize reliability• The Vice President outlined plans to distribute more than

$4.5B for smart grid technologies

“By investing in updating the grid now, we will lower utility bills for

American families and businesses, lessen our dependence on foreign

oil and create good jobs that will drive our economic recovery – a

strong return on our investment.”

- Vice President Biden

Smart Grid Funding - $4.5B total

• Run by Office of Electricity

• $3.3B for Smart Grid Investment Grant Program – August 6

• $615M for Smart Grid Demonstration Projects - August 26

• $100M for workforce training

• $80M for conducting a resource assessment and analysis of future demand and transmission

Tracking Our Progress

• The American people want to know who is receiving the money, and know they are getting value for their tax dollars

• Everything we do will be transparent

• Visit recovery.gov or energy.gov/recovery/ to stay informed

How to Apply for a Grantor Loan Guarantee from DOE

• Funding opportunity announcement tracking for:– All types—energy.gov/recovery/funding.htm– Grants—grants.gov– Contracts—fbo.gov– Loan guarantees—energy.gov/recovery/funding.htm

• For first-time applicants, register before submitting applications– Register early to be ready when opportunities are announced

(process can take 3 days to 2 weeks)– Read registration instructions carefully

Applying for Grants Administered by California or Local Governments

• Apply directly to state energy office or local government entity

• For Recovery Act documents, go to the California Energy Commission website: http://www.energy.ca.gov

State Energy Office DirectorClaudia Chandler, Chief Deputy Director

(916) 654-4989

[email protected]

State Energy Program ManagerJohn Butler, Grants and Loans Office Manager

(916) 654-4204

[email protected]

Thank you!

For more information:

• Department of Energy Recovery Act Site http://www.energy.gov/recovery

• EECBG Program Page http://www.eecbg.energy.gov/

• EECBG Application Portalhttps://www.fedconnect.net

• Office of Weatherization and Intergovernmental Programshttp://www.eere.energy.gov/wip/

1-888-DOE-RCVY (1-888-363-7289)

Open Funding Opportunity Announcements