Trish Jerman May 8, 2009 South Carolina Energy Stimulus Provision Overview

S.C. Energy Office Mission To increase energy efficiency and diversity, enhance environmental quality and save energy dollars for South Carolina.

History of SCEO  Initially established in 1973  Formally constituted into law by the S.C. Energy Conservation and Efficiency Act of 1992  Now an office of the State Budget and Control Board

Programs  Transportation Alternatives  Renewable Energy  Energy Efficiency  Energy Education and Outreach  Radioactive Waste Disposal  Energy Planning and Forecasting

Stimulus funding overview Competitive Tax incentives Formula funding

Competitive Funding  Competitive funds ◦ Diesel Emission Reduction Act (DERA) – EPA  Four grants submitted  DOT Diesel oxidation  3 engine repowers of locomotives for S C Railroad Commission  2 Truck stop electrification sites on I-85 & I-95 ◦ Clean Cities - $300 M May 29  SC and NC joint proposal ($10/$5)  400 propane vehicle conversions  20 E85 and B20 stations  several CNG fueling stations and conversions  biodiesel distribution equipment (in 6 of 7 non-attainment areas)  infrastructure for plug-in hybrids in Greenville, Columbia

Competitive Funding ◦ Additional biofuel funding coming soon ◦ Additional wind funding coming soon ◦ Appalachian Regional Commission Energy Efficiency for Schools  Due June 30  $250,000/max $45,000 50% match  Installing renewable energy and energy efficiency equipment in K-12 schools in Appalachia, support for implementation of associated science, environment and business curricula in classroom  Anderson, Cherokee, Greenville, Oconee, Pickens & Spartanburg  Can match federal funds

 $250 Million  Grants and loans for HUD owners and purchasers to use sustainable Green Building Principles  m m

 $80 Million to conduct resource assessment and analysis of future demand and transmission requirements  Renewable Energy and the Grid

 $2.4 billion  Finances state, municipal and tribal government programs and initiatives used to reduce green house gas emissions  Provides interest free financing for clean energy projects—instead of paying interest, these tax credit bonds pay the bondholder by providing a credit against their federal income tax  Can be used for Green Community Programs

 $400 Million  Supports high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry

 $6 Billion  Loan guarantees for renewable energy, electric transmission technologies, or leading-edge biofuel technologies  Principal purpose of this program is to encourage early commercial use of new or significantly improved technologies  energy.gov/ energy.gov/

Competitive Funding ◦ Transportaton Electrification – $400 M  (geared toward manufacturers) ◦ Manufacturing of advanced batteries - $2B ◦ Smart Grid - $4.5B  Some interest among SC utilities ◦ Fossil energy R&D - $3.4B ◦ Uranium enrichment, decontamination and decommissioning - $390M ◦ Energy science research - $1.6B

Tax Incentives  About $7 billion allocated for home energy efficiency, home renewable energy, alternative vehicles, and renewable energy manufacturing and investment.

Tax Credits  Renewable Energy Tax Credit (Residential)  30% tax credit for residential applications of: ◦ Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies  Applicable to dwelling unit located in the U.S. used as a residence by the taxpayer ◦ Fuel cell credit only for primary residence, other applications may be primary or second home  Can be carried forward to next tax year  Program extended until 2016

Tax Credits  Plug-in Electric Drive Vehicle Credit ◦ Expands and extends existing credit  Alternative Refueling Property ◦ Expands credit from 30% to 50% for next 2 years  Energy-Efficient Improvements to Existing Homes ◦ Extends credit to 2010 ◦ Aggregate cap of $1500 ◦ Limit of 30% ◦ Covered items not intuitive—check the list!

Tax Credits  Repeal Subsidized Energy Financing Limitation on the Investment Tax Credit  Removal of Dollar Limitations on Certain Energy Credits ◦ Uncapped 30% credit for solar, small wind, geothermal  Permanent Sequestration Requirement to CO2 Capture Tax Credit  Parity for Transit Benefits ◦ Equalizes benefits for parking and transit

Tax Credits  Advanced Energy Investment Credit ◦ 30% investment tax credit for manufacture of advanced energy property  Extend the Production Tax Credits for Renewable Energy ◦ Wind through 2012, others through 2013  Election of Investment Credit in lieu of Production Tax Credits (30%)  Election of Grants for Specified Energy Property in lieu of Tax Credits (30%)

Tax Credits  Manufacturer’s Tax Credit for Clean Energy Products ◦ establish, re-equip, or expand manufacturing facilities for variety of clean energy products ◦ 30% credit

Formula Funding ◦ SEP - $3.1B ($50M for S.C.) ◦ Weatherization Assistance Program - $5B ($58.8M for S.C.) ◦ Energy Efficiency and Conservation Block Grants - $2.8B ($31M for S.C.) ◦ Worker training - $3.95B ($64M for S.C.) ◦ ENERGY STAR appliance rebate program - $300M (estimated $4.5M for S.C.)

Energy Efficiency and Conservation Block Grant Program

 $400 million in competitive funds to be available directly to local and tribal governments to support energy efficiency and conservation and renewable energy in government facilities.  Department of Energy guidelines have not yet been issued. Energy Efficiency and Conservation Block Grants

 Around $22 million available directly to 10 most populous cities and counties in state, plus the Catawba Indian Tribe ($173,900).  Complete list of allocations on the following slides.  These entities must submit their plans for their direct EECBG allocations to the U.S. Department of Energy by June 25, ( Energy Efficiency and Conservation Block Grants

Allocations for 10 largest cities  Charleston City - $1,138,700  Columbia City - $1,424,100  Goose Creek City - $153,600  Greenville City - $743,400  Mount Pleasant City - $593,700  North Charleston City - $978,500  Rock Hill City - $630,600  Spartanburg City - $192,900  Summerville City - $185,600  Sumter City - $179,400

Allocations for 10 largest counties  Aiken County - $646,100  Anderson County - $751,200  Beaufort County - $636,000  Florence County - $572,300  Greenville County - $3,435,400  Horry County - $2,400,800  Lexington County - $2,268,600  Richland County - $2,116,800  Spartanburg County - $2,221,800  York County - $586,200

 $5.75 million in competitive grants also will be available through the South Carolina Energy Office via COGs to cities/counties not in the list of 10 largest.  SCEO ConserFund Revolving Loan Program can be used to supplement grants (3% interest rate) and will be considered leveraged (non-federal) funds.  Jurisdictions should apply directly to COGs. Energy Efficiency and Conservation Block Grants

 Emphasis on ROI, economic development impact and job creation.  Applications from COGs available on or before May 31, 2009, with the deadline for submission tentatively September 1, Energy Efficiency and Conservation Block Grants

$5.75 Million Competitive Allocation COGDollarsSharePopulation Appalachian$841, %240,771 Berkeley- Charleston- Dorchester $990, %283,455 Catawba$467,1748.1%467,174 Central Midlands$213,0373.7%60,966 Lowcountry$286,7675.0%82,066 Lower Savannah$536,8419.3%153,631 Pee Dee$709, %203,012 Santee Lynches$615, %176,139 Upper Savannah$760, %217,579 Waccamaw$335,2695.8%95,946 Totals $5.75 million 100%1,647,259

State Energy Program

 South Carolina – $40 Million in formula funding (75% grant, 25% loan).  Will be used for energy-saving projects for school districts, public colleges and universities, and state agencies.  Funding allocated based on size of energy bill.  Applications are tentatively due on September 1, State Energy Program

Total Allocation Grant (75%) Loan (25%) School Districts $20.36 million $15.27 million $5.09 million Public Higher Ed $12.22 million $9.16 million $3.05 million State Agencies $7.42 million $5.56 million $1.85 million

 Additional funds to be allocated for: ◦ $3 million - Renewable energy grants (non-profits to be eligible) ◦ $3 million - Residential energy evaluation and assessment  Partnership with Governor’s Office of Economic Opportunity (OEO) and utilities ◦ $3 million - Industrial incentives ◦ $50,000 - Small business/Utility equipment loan program State Energy Program

◦ $1 million Training  South Carolina Energy Efficiency Training Collaborative (partnership between OEO, S.C. Dept. of Commerce, S.C. Technical College System, South Carolina Energy Office, and utilities)  HERS, BPI assessment and core competencies, industrial and institutional auditing, renewable technicians

South Carolina Energy Office 408 Wade Hampton Building Columbia, S.C (803)