State Energy Program Michele M. Farris, P.E., CEM State Energy Manager Michele M. Farris, P.E., CEM State Energy Manager

American Recovery and Reinvestment Act Signed into law February 17, 2009 Authorized $36.71 billion to the Department of Energy Objectives of the Act –Job creation, preservation and economic recovery

ARRA Special Terms and Conditions Governor’s Assurance –De-couple utility rates –Adopt building codes –Prioritize grants toward funding energy efficiency and renewable energy programs Reporting, tracking and segregation of costs Reporting on job creation and preservation Ensure that iron, steel and manufactured goods are produced in the US Ensure wage rates are comparable to those prevailing on projects of a similar character (Davis Bacon) Funds obligated by expended

Energy Efficiency & Renewable Energy State Energy Program Grant Opportunities –PY 2009 Formula Award. –2009 ARRA Formula Grants. –Energy Efficiency Conservation Block Grant (EECBG) –State Energy Efficient Appliance Rebate Program (SEEARP) The ARRA Act Authorized $16.8 billion to EERE –PY 09 Formula award $25 million (SD $165,000) –ARRA SEP $3.069 billion (SD $23,709,000) –EECBG $2.8 billion (SD $13,167,500) –Appliance Rebates $300 million (SD $772,000)

Goals of State Energy Program Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government. Reduce reliance on imported energy Improve the reliability of electricity and fuel supply and the delivery of energy services. Reduce the impacts of energy production and use on the environment.

PY 2009 SEP Funds awarded July 1, 2009 Energy Efficient Government Buildings –$1,782,314 Energy Loan –$4,187,892

ARRA SEP Funds awarded June 24, 2009 –Contain NEPA contingency ARRA Energy Efficient Government-Buildings –$3,000,000 ARRA Revolving Energy Loan –$20,495,755

PY 2009 and ARRA SEP Funds allocated for state owned facilities –Statewide Energy Audit –Installation of ethanol fueling pumps at 3 fleet locations (SF, Rapid, Pierre) –Building retrofits Projects managed by Office of State Engineer Revised contract language to reflect ARRA requirements

Energy Efficiency Conservation Block Grant State has not received award 10 most populous cities and counties receive direct grant from DOE –Cities Aberdeen ($107,900)Watertown ($90,800) Brookings ($87,600)Yankton ($61,600) Huron ($50,000) Mitchell ($65,200) Pierre ($61,700) Rapid City ($649,900) Sioux Falls ($1,513,600) Vermillion ($50,000)

Energy Efficiency Conservation Block Grant 10 most populous cities and counties receive direct grant from DOE –Counties Brown ($50,000)Todd ($50,000) Lake ($50,000)Union ($64,800) Lawrence ($99,200) Lincoln ($110,700) Meade ($97,200) Minnehaha ($129,300) Pennington ($125,800) Shannon ($58,700)

Energy Efficiency Conservation Block Grant SEO must provide 60% ($6,562,460) of award to local governments not directly funded by DOE Remaining 40% ($3,188,306) stays in SEP –public and private sector –K-12 and technical schools –non-profit community based programs –non funded local governments Zero interest loans

Energy Efficiency Conservation Block Grant Project Criteria –competitive basis –simple payback –energy savings –job creation/retention –sustainability of the project –community benefit –local fund participation

State Energy Efficient Appliance Rebate Program State allocated $772,000 Initial application submitted August 14, 2009 State plan due no later than October 15, 2009 Funds must be expended by February 2012 Rebates for ENERGY STAR Appliances Rebates for residential consumers