Larry Shirley State Energy Office April 14, 2009 Energy Components of the American Recovery and Reinvestment Act of 2009 Larry Shirley State Energy Office April 14, 2009 The American economy is in themidst of a crisi unlike any we have seen in our lifetime. The economy lost 2.6 million jobs in 2008, the most of any year since World War II. Manufacturing activity is at its lowest level in twenty-eiight years. Consumer spending is declining and confidence is at historic lows. Many experts believe unemployment could reach double digits if no action is taken. In light of this historic economic weakness, President Obama is working with Congress to enact an American Recovery and Reinvestment Plan. A nationwide effort to create jobs and transform our economy to compete in the 21st century. The House Bill is the only document presently available. It is anticipated that this Bill will be enacted by mid February.

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 Alternative Fuels Biomass Energy Manufactured Housing State Energy Conference Energy Audits & TA Consumer Outreach Utility Savings Initiative for Public Buildings State Fleet Efficiency and Fuels Energy Loan Fund Industrial Efficiency Solar & Wind

State Energy Program ARRA $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).

Potential Focus Areas State 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 Efforts State 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 This package is the first crucial step in a concerted effort to create and save 3-4 million jobs, Jumpstart our economy, and begin the process of transforming it for the 21st century with $275 billion in economic recover tax cuts and $550 billion in thoughtful and carefully targeted p;riority investments with unprecedentin accountability measure built in.

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: $58,050,300 State 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 Awards Funds 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 Jobs ARRA $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 Grid ARRA $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

Schools ARRA No specific funding for energy efficiency in schools Encourages schools should be modernized “consistent with a recognized green building rating system”

Federal Buildings ARRA $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&D ARRA $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 Relief Emergency 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 bonds Plug 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 Office N.C. Department of Administration 1830A Tillery Place Raleigh, NC 27604-1376 Mailing Address: 1340 Mail Service Center Raleigh, NC 27699-1340 919-733-2230-telephone 919-733-2953-fax www.energync.net