Page 1June 2009 American Recovery and Reinvestment Act 2009 Higher Education and the Stimulus Package

Protection notice / Copyright notice Steve Hoiberg Higher Education Marketing Manager Phone: Nichelle Grant K-12 Education Marketing Manager Phone: Dave Snuttjer National EES Business Development Manager Phone: Presenters © Siemens Building Technologies, Inc All rights reserved.

Page 3August 2009 Purpose Overview  Funding Overview4  State Fiscal Stabilization Fund5  Energy Efficiency and Conservation Block Grant17  Other Governmental Organizations and Existing Bonds Enhanced with Stimulus Funding23  Additional Resources29 To help ACUPCC signatory schools understand:  What stimulus money is available for higher education?  How to interact with your state, county and city?  What additional stimulus resources are available?

Page 4August 2009 Funding Overview – Money Available for Modernization, Renovation and Repair Stimulus Funding US Department of Education US Department of Energy State Fiscal Stabilization Fund (SFSF) Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP)

Page 5August 2009 Stimulus Funding US Department of Education US Department of Energy Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP) Funding Overview – Money Available for Modernization, Renovation and Repair State Fiscal Stabilization Fund (SFSF)

Page 6June 2009 US Department of Education State Fiscal Stabilization Fund Program (SFSF)

Page 7August 2009 Spend Quickly to Save and Create Jobs Ensure Transparency and Accountability Thoughtfully Invest One-Time Funds Advance Effective Reforms ARRA and SFSF: Education Funding Overview In sum, the overall investment in education exceeds $100 billion  The money for SFSF comes out of the $100 billion  Success depends on leadership, judgment, coordination and communication along four "Key Principles":

Page 8August 2009 State Fiscal Stabilization Fund (SFSF) State Fiscal Stabilization Fund $53.6 billion Governors $48.6 billion The Secretary $5 billion Public Elementary, Secondary, and Institutions of Higher Education 81.8% ($39.8 billion) Education, School Modernization, Public Safety, or other Government Services 18.2% ($8.8 billion) Race to the Top ($4.35 billion) FormulaCompetitive

Page 9August 2009 State Fiscal Stabilization Fund (SFSF): Private Colleges SFSF and Private Colleges According to ‘Guidance on the State Fiscal Stabilization Fund’ estabilization/guidance.pdf  Yes. A State may use these funds to construct, modernize, renovate, or repair a private school facility. However, the limitations referenced in Question IV-3 apply to such uses of funds. For example, a State is prohibited from using Government Services funds for construction, modernization, renovation, or repair of facilities (a) that are used for sectarian instruction or religious worship; or (b) in which a substantial portion of the functions of the facilities are subsumed in a religious mission. (See generally Section 14004(c) of the ARRA.)

Page 10August 2009 State Fiscal Stabilization Fund (SFSF): Federal Release of Funds Federal Release of Funds Phase One  67 percent of the state’s total stabilization allocation released (money is given approximately two weeks after application is approved). Phase One Exceptional Circumstances  Up to an additional 23 percent of the state’s total stabilization allocation released (for a total of up to 90 percent). Phase Two  Remaining portion (33%) of the state’s total stabilization allocation was to be released by September 30, 2009, but actually occurred in mid July; all states now have their full allocation

Page 11August 2009  There is no money specifically allocated for modernization; as such, this may prove a low priority in some states compared to other critical education needs Modernization is an Option  Through these funds, institutions of higher education can pursue work related to electrical systems, plumbing systems, sewage systems, heating, ventilation or air conditioning systems, the installation of energy-efficient windows, the repair of roofs, asbestos abatement or removal, bringing facilities into compliance with fire and safety codes, making facilities accessible or upgrading facilities to support new programs or services What Modernization, Renovation and Repair is Permissible?  Casinos and gaming establishments, aquariums, zoos, golf courses, swimming pools, financial assistance to students, maintenance of systems, equipment and facilities, stadiums (construction, modernization, renovation and repair), sectarian education and religious facilities What is not Allowed? State Fiscal Stabilization Fund (SFSF): Modernization

Page 12August 2009 Use of the Government Services Fund CategoryEstimated Percentage of Funds to be used Public Safety0% Elementary and secondary education (excluding modernization, renovation, or repair of public school facilities) 48% Public IHEs (excluding modernization, renovation, or repair of IHEs )42% Modernization, renovation, or repair of public school facilities5% Modernization, renovation, or repair of IHEs5% Medicaid 0% Public assistance 0% Transportation 0% Other (please describe) 0% Undetermined 0% Total100% If ‘Yes’ to Modernization Under SFSF: *This is an example of an actual state’s application

Page 13August 2009 State Fiscal Stabilization Fund (SFSF): Application Requirements Application Requirements Institution of Higher Education (IHE)  An IHE is not required to submit an application in order to receive funds unless the Governor requires it.  The Governor may direct an IHE to submit an application that contains information that he or she may reasonably require, and may restrict the IHE’s use of funds to expenditures that would help mitigate the need for increases in tuition and fees paid by in-state students. There is flexibility in when funds can be spent as long as they’re obligated by September 30, 2011; funds can be released to IHEs in phases to avoid a ‘funding cliff’

Page 14August 2009 State Fiscal Stabilization Fund (SFSF): Action Items 1) If “yes,” look for guidance in the article linked document, especially pp  2) Questions to ask your yourself…  Has our IHE applied for modernization money from the state?  What projects would we like to complete with these funds?  Have we gone through the process of prioritizing projects? 3) Other Resources   Also go to your state Department of Education site; each of these should have a ‘recovery’ section

Page 15August 2009 Use of the Government Services Fund CategoryEstimated Percentage of Funds to be used Public Safety17.4% Elementary and secondary education (excluding modernization, renovation, or repair of public school facilities) 0.0% Public IHEs (excluding modernization, renovation, or repair of IHEs )2.9% Modernization, renovation, or repair of public school facilities0.0% Modernization, renovation, or repair of IHEs0.0% Medicaid14.5% Public assistance31.5% Transportation6.4% Other (please describe) – Administration of ARRA0.9% Undetermined – FY1126.4% Total100% If ‘No’ to Modernization Under SFSF: *This is an example of an actual state’s application

Page 16August 2009 State Fiscal Stabilization Fund (SFSF): Action Items 1) If “no,” questions to ask yourself such as…  Have we explored other stimulus funding possibilities?  Has our city or county received a formula block grant through the US Department of Energy?  What does ‘undetermined’ mean? 2) A discussion to have with other members of your school’s administration…  If our state has not made provisions for modernization, renovation and repair under SFSF, we need not worry. There are lots of other options and we need to start exploring these together 3) Resources  State and Local Grant Allocations

Page 17June 2009 Energy Efficiency and Conservation Block Grant Program (EECBG ) US Department of Energy

Page 18August 2009 Funding Overview – Money Available for Modernization, Renovation and Repair Stimulus Funding US Department of Education US Department of Energy State Fiscal Stabilization Fund (SFSF) Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP)

Page 19August 2009 Funding Overview – Money Available for Modernization, Renovation and Repair Stimulus Funding US Department of Education US Department of Energy Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP) State Fiscal Stabilization Fund (SFSF)

Page 20August 2009 Energy Efficiency and Conservation Block Grant (EECBG): Allocations and Eligibility (Formula) EECBG Funding $3.2 billion Formula Grants $2.8 billion Competitive Grants $398 million States 28% in total; 60% must be sub- granted to smaller cities and counties Formula grant application deadline was extended to 8/10 Cities Population 35,000+ or one of top ten in state; smaller cities eligible for state sub-grants per state rules Counties Population 200,000+ or one of top ten in state; smaller counties eligible for state sub-grants per state rules Indian Tribes 68%2%

Page 21August 2009 Energy Efficiency and Conservation Block Grant (EECBG): Permissible Projects What Types of Projects are Permissible?  Development of an Energy Efficiency and Conservation Strategy  Technical Consultant Services  Residential and Commercial Building Energy Audits  Financial Incentive Programs  Energy Efficiency Retrofits  Energy Efficiency and Conservation Programs for Buildings and Facilities  Development and Implementation of Transportation Programs  Building Codes and Inspections  Energy Distribution  Material Conservation Programs  Reduction and Capture of Methane and Greenhouse Gases  Traffic Signals and Street Lighting  Renewable Energy Technologies on Government Buildings  Any Other Appropriate Activity

Page 22August 2009 Energy Efficiency and Conservation Block Grant (EECBG) 1) Understand your state, city and county allocations and how funding is applied for  State and Local Grant Allocations  EECBG Website  EECBG Application Requirements and Guide 2) Questions to ask yourself such as…  Have we been in contact with our state, city or county about EECBG formula grants?  Has our state, city or county provided clarity and defined a process for applying for these stimulus funds? 3) Project types to discuss as part of a prioritization process  A “stuck” Performance Contract project – buy-down  Facility improvement measures, possibly as part of a Performance Contract  A ‘Service’ project  A larger ‘Solutions’ project

Page 23June 2009 Other Stimulus Funding Sources Governmental Organizations and Existing Bonds Enhanced with Stimulus Funds

Page 24August 2009 Funding Overview – Money Available for Modernization, Renovation and Repair Stimulus Funding US Department of Education US Department of Energy State Fiscal Stabilization Fund (SFSF) Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP)

Page 25August 2009 Funding Overview – Money Available for Modernization, Renovation and Repair Stimulus Funding US Department of Education US Department of Energy Energy Efficiency and Conservation Block Grant (EECBG) Bureau of Indian Affairs National Science Foundation National Institutes of Health National Institutes of Standards & Technology Department of Agriculture Build American Bonds Qualified Energy Conservation Bond State Energy Program (SEP) State Fiscal Stabilization Fund (SFSF)

Page 26August 2009 Other Stimulus Funding Sources: State Energy Program  State Energy Program (SEP): States use grants from SEP to address their energy priorities and program funding to adopt emerging renewable energy and energy efficiency technologies  SEP Overview  State Energy Offices and Contacts

Page 27August 2009 GRANTS (in most cases)  Bureau of Indian Affairs  Department of Agriculture  National Science Foundation  National Institutes of Health  National Institute of Standards and Technology BONDS (low-interest loans)  Build America Bonds  Qualified Energy Conservation Bond Program Other Stimulus Funding Sources

Page 28August 2009 Governmental Organizations and Existing Bonds: Action Items 1) Understand the programs  Please see the previous slide where links for all these programs can provide details on stimulus-specific initiatives and processes 2) Questions to ask yourself such as…  Are we familiar with or have we applied for these grant and bond programs previously?  Do we understand how the stimulus portions of these grant and bond programs can be used for modernization, renovation and repair?  Do we have a qualified grant writer to help us in applying for these funds in a timely manner?

Page 29August 2009 Additional Resources  AACC’s Community College ‘Stimulus’ Guidance Document ief pdf  US Department of Education’s SFSF State Grants Page  AASHE’s ‘Stimulus-to-Promote-Sustainability’ Blog money-promote-sustainability  Harvard’s Internal ‘Stimulus’ Website  Kansas State’s Internal ‘Stimulus’ Website

Page 30August 2009 Conclusion  Stay informed on grant opportunities for construction, modernization, renovation, repair and renewable/alternative energy, many of which come under the auspices of governmental entities discussed in this presentation, by regularly visiting  Please see this example from the US Department of Energy: Recovery Act: High Penetration Solar Deployment (close date – July 30) – WQdQV8WNRhTzjsBf0RC9vNHxyTts! ?oppId=47579&flag2006=false&mode=VIEW WQdQV8WNRhTzjsBf0RC9vNHxyTts! ?oppId=47579&flag2006=false&mode=VIEW  Stay in regular contact with your state departments of education and energy to ensure understanding of what money is available and how this is accessed by IHEs  Look for additional resources from Siemens and contact us with questions about stimulus-funded modernization, renovation and repair project prioritization

Page 31Confidential & ProprietaryJune 2009 Siemens Building Technologies, Inc. Q&A and thank you for your attention!