1. Conservation Services Group
American Recovery and Reinvestment Act: Advancement of Energy Efficiency
Stephen Cowell
Conservation Services Group
April 3, 2009

2. Background: Political Process
An historic large, fast moving legislative initiative
Directives: get money out quickly, use existing authorization vehicles
Advocates for various positions worked to influence the bill (in all areas)
New England Clean Energy Council’s Policy Committee formed efficiency subcommittee (Sam Krasnow/Steve Cowell co-chairs)

3. SAVE Energy Coalition 100 organizations focused on key areas:
State funding for expanding existing programs as the fastest vehicle
Low-income weatherization
Block grants for cities and towns
Green jobs
Goal: $16 billion in EE funding

4. ARRA Outcome: Energy Efficiency
Total energy efficiency: $12.35 billion
3.1B SEP
3.2B EECBG
5B WAP
.5B Green Jobs
.3B ENERGY STAR Rebates
.25B HUD Section 8 Housing

5. ARRA Outcome: Energy Efficiency
Other potential opportunities:
GSA B
HUD public housing 1B
DOD facilities 3.6B
Office of High Performance Green Buildings .4B

6. State Energy Programs
Expansion of existing DOE program from $25 million to $3.1 billion
State Energy Offices (DOER) administer based on approved plan

7. Conditioning/Prioritization Language
Regulatory Reform: “The applicable State regulatory authority will seek to implement, in appropriate proceedings for each electric and gas utility, with respect to which the State regulatory authority has ratemaking authority, a general policy that ensures that utility financial incentives are aligned with helping their customers use energy more efficiently and that provide timely cost recovery and a timely earnings opportunity for utilities associated with cost-effective measurable and verifiable efficiency savings, in a way that sustains or enhances utility customers' incentives to use energy more efficiently.”

8. Conditioning/Prioritization Language
Code Upgrades using similar language to regulatory reform
Prioritize expansion of existing state and regulatory programs where practicable (renewable and efficiency)

9. DOE Timing and Administration
Administered by the Office of Weatherization and Intergovernmental Affairs
March 23 Preliminary Plan plus letter on conditioning
Guidance Document released 3/13
States must submit revised SEP plans that comply with guidance on Conditioning and Prioritization: Final Plan submission 5/12

10. Timing and Administration
Funds can flow within 30 days SEP plan receipt
10% on initial plan/40% on final plan approval/30% performance based
Quarterly report submitted by each state
Measurement and Verification contractor hired by DOE to assess impact
Virtually no staff available at this office to help administer this program

11. Massachusetts Allocation
Approximately $54 million
DOER is responsible for revising its SEP plan to incorporate the additional funding
Initial plan focused on state building upgrades and projects (renewable and efficiency)
Potential open solicitation for a portion of the funds but it has not been released

12. Other State Allocations
Connecticut million
RI million
NH 26 million
Vt 22 million
Maine 27.3 million

13. Low Income Weatherization (WAP)
$5 billion, expanded from $400 million (est.)
Include up to 20% for T and TA
Increase per-house expenditure from $2,500 to $6,500
Increase eligibility from 150% to 200% of poverty level

14. DOE Administration and Timing
Revised grant awards to each state will need to be made by DOE
Guidelines for T and TA funds used by DOE directly and the state administrator need development
Administered by the Office of Weatherization and Intergovernmental Affairs
Guidance documents released 3/13

15. Massachusetts Allocation
Administration by Dept. of Housing and Community Development (DHCD)
Funding projected at $125 million over 2 years
Additional funds available from public benefit and RGGI funding
Delivery by the Low Income Network of CBOs (LEAN)
Single largest challenge: compliance with Davis-Bacon prevailing wage requirements

16. Energy Efficiency Block Grants
Follow CDBG framework
Cities over 35k in population: direct grant
Counties over 200k (minus entitlement city population): direct grant
A portion managed by the State
$2.8 billion appropriation plus $400 million for competitive grants

17. DOE Timing and Administration
Administered by the Office of Weatherization and Intergovernmental Affairs
Funding guidelines released 3/27
Applications to be submitted by June 25 (cities); May 26 (state)

18. Massachusetts Allocation
$42 million
$6.5 million to Boston, 1.7 million to Worcester
$14 million to DOER
42 cities can apply for formula based funding

19. Other State EECBG Conn 24.5 million Maine 11.3 million NH 12.5 million
RI million
Vt million

20. ENERGY STAR Rebates
$300 million for ENERGY STAR program and matching grants for state rebate programs
Administered via state programs
Includes provision to replace old appliances

21. Green Jobs
$500 million
Dept. of Labor, Office of Employment and Training Administration
Includes research, job exchange and training
Could overlap with the WAP T and TA
Uncertain if administration will coordinate with the needs of the efficiency programs operated by DOE/HUD/EPA

22. Section 8 Energy Retrofits
$250 million directed to project based section 8 housing for energy retrofits to stabilize project income.
HUD implementation and administration but guidelines and details not yet known

23. Labor and Resource Challenges
Depends on type of programs/projects selected
Staffing for residential will be met from new housing pool of unemployed
Commercial and Industrial will have a shortage of engineering/evaluation
Renewable Installations may compete with multiple state programs

24. Overall Challenges
Approximately $250 million will be added to the existing $360 million funding over next 24 months
Will ARRA funding leverage private dollars, or squeeze out private investment and decrease long term efficiency opportunities?
Confusion may result for customers who receive multiple offers
Is this only a public works program, or are there opportunities to assist / investments that have been overlooked in current programs?

25. For additional information:
Steve Cowell
CEO
(508) x13259