STATE ENERGY PROGRAM Progress and Challenges Eastern States Meeting November 15, 2006.

STATE ENERGY PROGRAMProgress and Challenges

Eastern States Meeting

November 15, 2006

The Road Today

SEP Business

Budgets

Services

Marketing

EPACT

Future Directions

SEP Budget

FY 2006: $36.4 million

FY 2007:

Administration Request $49.5 million

House Budget $25 million

Senate Budget $49.5 million

At present, DOE is operating on a Continuing Resolution which is expected to run through the end of the year.

EPAct 2005

Two changes to SEP:

• Establishes goal of 25% or more improvement in energy efficiency by 2012, as compared to 1990.

• Requires the Secretary of Energy, every three years, to invite the Governor of each State to review and if necessary revise the SEP State Plan, in consideration of the Plans of other States within the region and opportunities and actions than could be carried out in pursuit of common energy conservation goals

• SEP regulation has been updated to reflect these changes – revisions in Federal Register 10/2/06

EPAct 2005

EPACT establishes three programs to be carried out through the State Energy Offices (subject to funds availability):

• Section 125: Establishes an Energy Efficiency Program for Public Buildings for States

• Section 140: Establishes a Pilot Program of financial assistance to at least 3-7 States to plan and adopt State-wide programs that encourage energy efficiency.

• Section 913: Establishes a Program to demonstrate renewable energy in public buildings.

SEP Strategic Plan

The SEP Strategic Plan, developed by State representatives, establishes the following goals:

• Increase energy efficiency to reduce energy cost and consumption for consumers, business and government

• Reduce reliance on imported energy

• Improve the reliability of electricity, fuel and delivery of energy services

• Reduce the impacts of energy production and use on the environment

The draft Plan is in final editing and will be available in December.

IG Report

Earlier this year, the DOE IG conducted an audit to determine whether the Department had implemented controls for the State Energy Program to

• ensure grant funds were used for their intended purpose

• determine the cost benefit of the program in meeting its goals

IG Report (cont)

The IG Letter Report recommended:

• Specifying the monitoring responsibilities and staffing of the program at the reorganized EERE field sites.

• Implementing regularly scheduled monitoring visits that address administrative, financial, and programmatic areas

• Completing work with the State to design appropriate quantifiable performance measures and to use the results to re-evaluate the cost benefit of the program.

IG Report

EERE’s Response – Next Steps

• Monitoring working group is revising SEP and WAP monitoring guidance and developing a coordinated grant monitoring schedule.

• SEP Strategic Plan includes more specific and measurable performance measures.

• Planning for the next phase of SEP evaluation efforts has begun, building on ORNL’s metrics work.

Grants Management Issues

UNCOSTED CARRYOVER

• Special area of emphasis

• EERE has been criticized for its financial management. Uncosted carryover in grants and contracts is being targeted

• Uncosted carryover negatively impacts our justifications for additional funding for SEP.

Grants Management Issues

E-GOV and Grants.gov:

• E-Gov’s budget for 2007 has been cut, and the system design contractor has been changed.

• SEP Forms are caught in this change.

• Plans are to use Grants.gov for 2007 State Plan submission

Energy Emergency Plans:

• 50 States and Territories have submitted updated Energy Emergency Plans to date.

• Copies have been provided to the Office of Electricity Delivery and Energy Reliability

PVE Funds

Last Remaining PVE Funds Were Distributed in Summer 2006

Good News/Not-so-Good News

• Good News: OHA distributed $42 million during July and August, 2006, mostly to States and local governments.

• Not-so-Good News: No requirement that these funds be used for energy-related programs.– These funds represent direct restitution to individual claimants for

documented overcharges– Could go into a State’s general fund, or to a specific agency

GET YOUR “BID” IN!

PVE Funds

PVE DATA RECONCILIATION

• Significant number of discrepancies between PVE fund records maintained by DOE and the States; need to reconcile as much as possible

• E-Mail sent out to each State with the information we have on file from DOE’s systems and the State Annual Reports.

• Please follow up with Faith Lambert (202-586-2319, [email protected]) or Harvey Major (202-586-0124 or [email protected]) with questions

• Deadline for submission of FY 2006 Annual Reports extended to allow for reconciliation

EERE Air Quality Integration – Market Transformation Opportunities

DOE, in partnership with EPA and states, is supporting air quality integration

15 states are actively working on EE/RE projects to help achieve air quality objectives

Successes to date:

Texas is including nearly 1000 EE/RE projects in its NOX SIP

Colorado spent $500,000 of an enforcement settlement on EE/RE measures in local schools

The Illinois PUC looked favorably on an RPS goal with consideration of the air quality benefits

Connecticut implemented 99 new Clean Energy Projects in 2005, including 75 new PV installations & 6 fuel cells

DOE has provided assistance with quantification of emissions avoidance, tapping expertise at NREL

EERE Addresses Complex National Energy Issues

• Increasing dependence on foreign oil

• Environmental impacts associated with energy use

• A vulnerable national energy infrastructure

• Rising fossil fuel prices

States Guide State Information Task

State Energy Information Advisory Board provides guidance.

State energy offices submit news releases, project descriptions for bimonthly newsletter, Conservation Update, and success stories.

WIP sponsors state-oriented Web sites for EERE:

– State Energy Program Web site organizes descriptions of state energy office projects by topic and state.

www.eere.energy.gov/state_energy_program/

– EERE State Activities & Partnerships links to state content on EERE Web sites, publishes energy statistics, organizes news by state.

www.eere.energy.gov/states/

– Weatherization & Intergovernmental Program site links to all WIP program Web sites.

www.eere.energy.gov/wip/

Technical Assistance Project (TAP)

Crosscutting policy and technical assistance for states (up to $5k)

Five topic areas:– Systems benefit charges or other rate-payer funded

utility efficiency and renewable programs– Renewable or efficiency portfolio standards (RPS)– Use of clean energy technologies to reduce air emissions– Use of renewable energy on state or local public lands– Use of renewables for disaster relief, mitigation, and

planning (NEW)

State Services Delivered (7-25-06)

3*4*

2

6

3

4

4

1

5

3*

22

3* 2

3

3

4

2

3

63 NH4 MA1 RI3 CT1 DE

3

2

4

1

1

1

2

1

2

2

2

1

1

2

2

1*

1*

2

*Includes Multi-State Request(s)

Technical Assistance Project (TAP)

For more information:

Jerry Kotas (Golden PMC) at 303-275-4850, [email protected]

Renewable Energy Production Incentive (REPI)

What is REPI?

An incentive payment for public utilities, not for profit electric cooperatives, and Tribal utilities that generates and sells renewable energy to end use consumers.

Qualifying Technologies solar, wind, biomass, landfill gas, livestock methane, ocean, or geothermal energy

Fiscal Year EERE Budget Request

($million)

Congressional Appropriation ($million)

2007 4.946 --

2006 5.00 4.856

2005 5.00 4.960

2004 4.00 3.926

2003 4.00 4.816

2002 3.99 2.840

Applications Received from Qualifying Facilities -2000 to 2005

66

3526

4257

41 54

65

22

18

3625

0

1020

3040

5060

70

2000 2001 2002 2003 2004 2005

Production Years

Nu

mb

er o

f Q

ual

ifyi

ng

F

acil

ites

60 % Appropriation (Formerly Tier 1) 40 % Appropriation (Formerly Tier 2)

REPI Contact Information

For Policy and Appropriation questions contact:

Dan Beckley

1000 Independence Ave, SW

Washington, DC 20585

Email: [email protected]

For REPI implementation - facility qualifications, applications, and payment

questions contact:

Christine Carter

1617 Cole Boulevard

Golden, Colorado 80401

Email: [email protected]

REPI Websitehttp://www.eere.energy.gov/wip/program/repi.html

www.eere.energy.gov

Bringing you a prosperous future where energy is clean, abundant, reliable, and affordable

1-800-DOE-3732