Budget Compromise Looks OK for Projects in DOE Loan Guarantee Pipeline
The current version of the budget compromise provides relatively good news for projects seeking DOE loan guarantees. During the past several months, renewable energy projects in the DOE’s Loan Guarantee pipeline have been exposed to substantial uncertainty as a result of the budget crisis in DC. The developers of these projects have previously invested substantial resources to apply to the program which would become wasted effort if the program funds evaporate as the projects wait for DOE approval. The Loan Guarantee Program Office led by Jonathan Silver was clearly aware of this issue and prudently allowed all open solicitations to expire in early 2011 without issuing any new ones. The renewable energy project developers’ concern has been that the budget deal would involve a substantial claw back of previously appropriated funds that have not yet been committed to projects.
The battle is not yet resolved but the current compromise is encouraging for these projects. There is a claw back of $18.183 billion in uncommitted funds but these were funds appropriated under provisions that required that the Credit Subsidy Cost to be paid by developers. The Credit Subsidy Cost was the bane of the Loan Guarantee Program as it essentially required the program applicant to cover the present value risk that the project would default on the loan. The Stimulus Bill solved this problem and greatly increased the attractiveness of the Loan Guarantee Program by appropriating funds to cover the Credit Subsidy Cost. Similarly, the current budget compromise appropriates an additional $1.183 billion in funds and allows these funds to be utilized to cover Credit Subsidy Costs. Thus, while the provision claws back funds, these are funds that were not attractive due to program limitations whereas new funds are appropriated to the preferred program. In addition, the proposed legislation imposes an Office of Management and Budget certification of compliance requirement as a control on the program.
The current bill is HR 1473 and is likely to be voted on later this week and thus is still subject to amendments. To obtain the latest details and access to the bill, see the Open Congress site at http://www.opencongress.org/bill/112-h1473/show
DOE and Interior Announce $26.6 Million for Hydropower R&D
At the National Hydropower Association conference in Washington, D.C. earlier this week, Department of Energy ("DOE") Secretary Steven Chu and Department of the Interior ("DOI") Secretary Ken Salazar announced a $26.6 million grant program to advance the development, testing, validation, modeling, and interconnection of advanced conventional hydropower systems. The agencies' news came at the same time that the DOE's Oakridge National Laboratory announced that as much of 12.6 GW (12,600 MW) of additional hydropower capacity can be drawn from the nation's waterways if generating facilities are added to 54,000 dams (including federal projects) that currently do not have them. The top 100 of those sites could add up to as much as 8 GW (8,000 MW) of capcity.
Topics 1, 2, and 3 of the Funding Opportunity Announcement (DE-FOA-0000486) will be funded by the DOE's Office of Energy Efficiency and Renewable Energy ("EERE"). Topic 4 will be jointly funded by the EERE and the DOI's Bureau of Reclamation. The topics are as follows:
- Topic 1. Sustainable Small Hydropower. $10.5 million over three years to advance research and development of small hydropower facilities to be installed at existing facilities (e.g., dams, conduits).
- Topic 2. Sustainable Pumped Storage Hydropower. $11.875 million over four years to provide assistance to projects already in development. Preference will go to projects that will begin construction in 2014 and assist with grid integration of variable resources like wind and solar.
- Topic 3. Environmental Mitigation Technologies for Conventional Hydropower. $2.25 million over three years for R&D related to issues facing conventional hydropower technologies (e.g., turbine efficiencies and fish mortality).
- Topic 4. Advanced Hydropower System Testing at a Bureau of Reclamation Facility. $2 million over three years for system testing of low-head hydropower technologies at existing, non-powered Bureau of Reclamation facilities.
Letters of Intent for the FOA are due no later than 11:59 p.m. Eastern Time on May 5, 2011. Applications are due no later than 11:59 p.m. Eastern Time on June 6, 2011.
DOE Approves Loan Guarantee for ON Line
On October 20, my colleague Janet Jacobs reported that the U.S. Department of Energy ("DOE") had offered a conditional commitment of $350 million to NV Energy, Inc. and Great Basin Transmission South, LLC, an affiliate of LS Power Group, for development of the 500-kV One Nevada Transmission Line (the "ON Line project").
Well, good news.
Two days ago, Secretary Chu announced that DOE had approved a $343 million loan guarantee for the ON Line project- the first of its kind for a transmission line. The ON Line project will stretch 235 miles from Ely, Nevada to a substation just north of Las Vegas at a projected cost of $500 million. As the first phase of a larger transmission infrastructure project, the ON Line will initially be able to transmit approximately 600 MW of otherwise landlocked renewable energy to load centers. When the final phase of the project is completed, the line will be able to transmit approximately 2 GW (or 2,000 MW) of renewable electricity from Idaho, Wyoming, and Nevada to serve customers in southern Nevada, California, and the rest of the Southwest.
Ninth Circuit Decision Further Dismantles an Already Weakened Federal Transmission Siting Authority
Congress’ experiment with establishing federal siting authority for transmission lines suffered another setback after a Ninth Circuit Court of Appeals decision issued yesterday, February 1, 2011, vacated the Department of Energy’s (“DOE”) 2007 Transmission Congestion Study that had designated national interest electric transmission corridors in mid-Atlantic and Southwestern states. This ruling is the latest of three court and agency decisions that have limited or undermined the federal siting authority established at Federal Power Act section 216 by the Energy Policy Act of 2005.
Congress created section 216 to confront concerns that states were acting too slowly in siting new transmission lines needed to address growing reliability and congestion problems. In part, section 216 directs the DOE to study transmission congestion in consultation with the states, and designate certain transmission-constrained areas as national interest electric transmission corridors (“NIETCs”). Section 216 also grants the Federal Energy Regulatory Commission authority to issue permits to construct transmission facilities in these NIETCs under certain circumstances. Congress also provided that an applicant who receives a permit to construct transmission in a NIETC would be granted with the authority to acquire rights-of-way by eminent domain. In sum, section 216 had the potential to uncork the transmission bottleneck, but that potential has not materialized.
Projects & Money 2011
As we approach the beginning of a new year, financing options for energy projects (both conventional and renewable) under the current economic conditions continue to be a challenge and a focal point for the energy industry. In order to gear up for financing opportunities in 2011, I, along with my colleagues Marcus Wood, Graham Noyes and Adam Kobos, will be heading to the Big Easy for Projects & Money 2011. Stoel Rives is proud to be a Gold Sponsor at this engaging conference, where Capital Providers, Project Developers and other dealmakers in the financing community will gather together to share information, discuss deal leads and capitalize on new market opportunities.
Projects & Money incorporates its comprehensive market updates with networking opportunities, introductions to new project developments, and interactive multimedia components. Presentations from industry professionals provide an inside look at some of the most ground-breaking deals of 2010, examine the trends they reveal, and provide a better understanding of what it takes to make deals happen.
Stoel Rives attorney Graham Noyes will present "DOE's Loan Guarantee Program: Crucial Financing Mechanism or a Costly Distraction?" on Tuesday, January 11, at 1:30 p.m. during the Pre-Summit Briefing.
On Wednesday, January 12, Partner Marcus Wood will moderate the discussion panel, "Transmission Outlook," at 2:15 p.m. during Track II: Project Sector Outlooks.
Hope to see you there!
To learn more about the conference or to register online, please visit: http://www.infocastinc.com/index.php/conference/416
Projects & Money
When: January 11-13, 2011
Where: Harrah's New Orleans – New Orleans, LA
REMINDER: Applications for SBIR and STTR Phase I Grants Due November 15th
Don't forget that the deadline for Phase I grant applications under the U.S. Department of Energy's ("DOE") Small Business Innovation Research ("SBIR") and Small Business Technology Transfer ("STTR") programs is 8:00 p.m. Eastern, November 15, 2010. Qualified small businesses with strong research capabilities in science or engineering in any of the research areas identified in the September 28, 2010 Funding Opportunity Announcement are encouraged to apply. Phase I grants of up to $150,000 will be awarded in FY 2011 under the SBIR; and grants of up to $100,000 will be awarded under the STTR.
The Phase I Technical Topics document lists several areas of particular interest for the renewable energy industry. Note that the following is not an exhaustive list. The full list and descriptions can be found in the Phase I Technical Topics document.
- Advanced Cooling and Waste Heat Recovery: Advanced Cooling; Advanced Waste Heat Recovery; Geoexchange heat pump (GHP) component R&D; Innovative GHP System/Loop Designs.
- Production of Bioenergy and Biofuels from Cellulosic and Non-Food Biomass: Biomass Feedstock Stabilization and Drying; Biomass Torrefaction; Sugar Catalysis to Advanced Biofuels and Chemical Intermediates; Pyrolytic Thermal Depolymerization.
- Hydrogen and Fuel Cells: Reducing the Cost of High Pressure Hydrogen Storage Tanks; Fuel Cell Balance-of-Plant; Demonstration of Alternative-Fuel Fuel CElls as Range Extenders.
- Innovative Solar Power: High Efficiency, Low Cost Thin Film Photovoltaics; Low Cost Building Integrated Photovoltaics; Static Module PV Concentrators; Solar-Powered Water Desalination; Distributed Concentrating Solar Power ("CSP").
- Advanced Water Power Technologies: Pumped Storage Hydropower; Advanced Hydropower Systems; Wave and Current Energy Technologies; Advanced Component Design for Ocean Thermal Energy Conversion Systems.
- Wind Energy Technologies: Transportation and Assembly of Extremely Large Wind Turbine Components for Land-Based Wind Turbines; Wind Energy Capture in Non-Conventional Wind Resources; Offshore Grid Infrastructure Hardware Development; Offshore Mooring and Anchoring Technology.
Detailed descriptions of each subtopic are included in the Phase I Technical Topics document.
Good News and Bad News for DOE's Loan Guarantee Program
There has been a wave of good and bad news this past week regarding the DOE's Loan Guarantee Program. On the positive side, Secretary Chu announced on Friday that the Department would be adding an additional compliance period for the Innovative Solicitation. The current deadline for the Part I application under the program is August 24th. Secretary Chu announced the applications would be accepted until October 5th thus providing six more weeks of time to applicants. Secretary Chu did not extend the Part II deadline and cannot extend the September 30, 2011 start construction deadline as that deadline was established by the Stimulus Bill itself. Still, the extension was generally viewed as a respite and perhaps an indication of a willingness to further extend the program.
On the bad news side, the Senate approved the FMAP state aid bill to avert teacher layoffs and pay for Medicaid which is to be funded in part by taking $1.5 billion in funds that the Stimulus Bill appropriated to the DOE Loan Guarantee program. Clearly driven by Pay-Go requirements, this is a reminder of the $2.0 billion fleecing that the Loan Guarantee Program suffered when Cash for Clunkers program was passed. While it has been promised that the funds will be restored, the fact that the Cash for Clunkers funding has not yet been restored raises concern about whether the restoration will occur.
Upcoming BETC Deadline--July 30, 2010
Pursuant to recently issued temporary regulations, the Oregon Department of Energy has imposed a July 30, 2010 deadline for projects seeking a BETC that have projected facility costs of $6 million or greater. See the link below for specific details.
DOI/DOE MOU for Offshore Renewable Energy Projects, Part 2
To follow up on my colleague Janet Jacobs' blog on this exciting topic, here's some more detailed information about the MOU, especially as it relates to marine and hydrokinetic ("MHK") technologies:
The United States Department of Energy’s Office of Energy Efficiency and Renewable Energy (“EERE”) and the United States Department of the Interior’s newly-renamed Bureau of Ocean Energy Management, Regulation, and Enforcement (“BOEMRE”) (see Note below) signed a Memorandum of Understanding for the Coordinated Deployment of Offshore Wind and Marine and Hydrokinetic Energy Technologies on the United States Outer Continental Shelf (the “MOU”).
The purpose of the document is to prioritize and facilitate environmentally-responsible deployment of commercial-scale offshore wind and MHK energy technologies on the Outer Continental Shelf (the “OCS”) through collaborative efforts. In a recent blog, I mentioned that the DOE has committed $15.36 million to help researchers and developers alike to bring various MHK technologies closer to commercial deployment. This MOU represents yet another effort to spur the growth of the burgeoning offshore renewable energy industry.
An interagency working group has been tasked with developing an action plan that addresses the deployment of offshore renewable energy projects, including both offshore wind and MHK technologies, within 30 days. The action plan will outline how the BOEMRE and EERE can work together to streamline leasing and regulatory processes on the OCS for those sites with high energy resource potential. The MOU also outlines how the agencies will share information and undertake collaborative activities such as stakeholder engagement, technical and environmental research, joint evaluation of standards and timelines for development, and the dissemination of information to decision makers.
Note: On June 21, 2010, DOI Secretary Ken Salazar issued Order 3302 renaming the Minerals Management Serivce the BOEMRE.
Geothermal Projects Recent Beneficiaries of DOE's Loan Guarantee Programs
U.S. Energy Secretary Steven Chu recently announced conditional commitments to provide loan guarantees in connection with two geothermal projects located in Oregon and Nevada. Specifically, on June 10, 2010, Secretary Chu announced that the Department of Energy offered a $102 million conditional commitment for a loan guarantee to U.S. Geothermal, Inc. to construct a 22 megawatt geothermal power project in Malheur County in southeastern Oregon. The project is slated to use an improved technology to extract energy from rock and fluids in the earth's crust more efficiently. In addition, U.S. Geothermal estimated that the planned project will create 150 jobs during the 20-month construction period and employ 10 skilled full-time workers when it begins operating in 2012.
On June 15, 2010, Secretary Chu announced that the Department of Energy offered a conditional commitment to provide a partial guarantee for a $98.5 million loan by John Hancock Financial Services to the Nevada Geothermal Power Company ("NGP") for a 49.5 megawatt geothermal project in Humboldt County in northwestern Nevada (the "Blue Mountain Project"). This conditional commitment is the first access to a loan guarantee through the Financial Institution Partnership Program ("FIPP"), which was launched by the Department of Energy on October 7, 2009. Under a FIPP financing, the Department of Energy provides a guarantee for up to 80 percent of a loan provided by qualified financial institutions to a renewable energy project utilizing commercial technologies. In connection with the loan guarantee for the Blue Mountain Project, John Hancock Financial Services was the lender-applicant and lead lender. The Blue Mountain Project "consists of a geothermal well field, fluid collection and injection systems that enable energy to be extracted from rock and fluid below the Earth's surface, and a power plant that converts geothermal energy into electricity." The electricity generated by the project will be sold to Nevada Power Company under a 20-year power purchase agreement.
U.S. DOE Releases Funding Opportunity Announcement for Marine and Hydrokinetic Technology Development
Today, the U.S. Department of Energy (the "DOE") released the long-awaited Financial Assistance Funding Opportunity Announcement ("FOA") titled "Marine and Hydrokinetic Technology Readiness Advancement Initiative." Federal funding for this initiative for fiscal year 2010 is expected to be up to $15.36 million, with the possibility of continued funding at, or near, that level for up to an additional two years. (Because all federal funding is subject to annual appropriations, these figures should be treated as estimates.)
The DOE has recognized that marine hydrokinetic ("MHK") technologies can provide renewable, environmentally responsible, and predictable baseload electricity to load centers along the nation's coastlines. And to help accelerate the development and deployment of these technologies, the DOE intends to advance the technological and operational readiness of MHK systems and components across a range of technology readiness levels ("TRLs") through this Funding Opportunity Announcement.
Although TRLs have been used for years by both NASA and the Department of Defense to develop advanced, mission-critical systems, this is the first time TRLs have been used by the DOE to assess the technological readiness of new renewable energy technologies. Recognizing that MHK devices and components are still largely in the early stages of research and development, the DOE has adopted a simplified TRL structure for purposes of this Funding Opportunity Announcement. The DOE is seeking applications in two topic areas: (1) MHK Technologies Concept Development (TRLs 1-3) and (2) MHK Technology Readiness Level Advancement (TRLs 4-9).
Funding will be made available in each topic area for both "systems" and "components." The DOE organized and grouped the TRLs into four discrete funding categories:
- Discovery / Concept Definition / Early Stage Development, Design and Engineering (TRL 1-3);
- Proof of Concept (TRL 4);
- System Integration and Technology Laboratory Demonstration (TRL 5/6); and
- Open Water System Testing, Demonstration, and Operation (TRL 7/8).
Each category has prescribed funding levels and project performance periods. A brief summary of the expected number of awards in each topic area and the associated expected federal funding is included below. For a complete funding breakdown for systems and components, see the Funding Opportunity Announcement.
| Topic Area | Period of Performance | Expected Number of Awards | Total Estimated Federal Funding | Estimated FY 2010 Federal Funding |
|
MHK Technologies Concept Development (TRLs 1-3) |
12 months |
8 (4 systems, 4 components) |
$1.6M | $1.6M |
|
MHK Technology Readiness Level Advancement (TRLs 4-9) |
18-36 months (see FOA) |
18 (11 systems, 7 components) |
$36.72M | $13.76M |
Applications are due to DOE by 11:59 PM Eastern Time on June 7, 2010.
REMINDER: Upcoming DOE Funding for Marine Hydrokinetics
On March 11, 2010, I posted a blog about the U.S. Department of Energy's (the "DOE") upcoming Funding Opportunity Announcement ("FOA") for hydrokinetic technology development. The DOE issued a Notice of Intent announcing the FOA earlier that week. To access the Notice of Intent, click here, and enter "hydrokinetic" in the search field.
The DOE was expected to issue the FOA by March 31, 2010. This blog is intended as a reminder that all interested parties should make sure they have followed the necessary steps to apply or submit questions regarding the FOA. For official procedures, see the Notice of Intent.
To respond to FOAs, either as an applicant to to submit questions, parties must first be registered with FedConnect. In order to register for FedConnect, a party must:
- Have a Duns and Bradstreet Data Universal Numbering System (a "DUNS Number"). If you do not know your company's DUNS Number or if your company does not have one, you can search for it or request one here; and
- Be registered with the Central Contractor Registry (the "CCR"). If you are not currently registered for the CCR, you can register at the CCR website.
If you are the first person to register in your company for FedConnect, you will need your company's CCR MPIN. If your company is already registered with the CCR, then you can find out who has your CCR MPIN by going to the CCR website and clicking "Search CCR." A company's CCR must be updated annually. To update your company's CCR, visit the CCR renewal website.
NOTE: CCR and FedConnect registration can take at least 21 days to complete. Since the DOE is expecting a quick turnaround on the FOA once it is released, interested parties should begin the registration process as soon as possible.
Secretary Chu Announces $80M for Biofuels
DOE Secretary Chu's announcement today regarding $80 million of ARRA funding for biofuels is potentially a positive development for the long-term development of the biofuels industry. What is worrisome from a practical perspective is the division of funding. The National Alliance for Advanced Biofuels and Bioproducts, centered in St. Louis, received $44 million to develop a systems approach for the sustainable commercialization of algal biofuel and bioproducts. The National Advanced Biofuels Consortium, based here in the Pacific Northwest, received up to $34 million to develop infrastructure compatible biomass-based fuels. Meanwhile eight infrastructure projects received up to $1.6 million to support expanded fueling infrastructure for ethanol blends. While the Administration is ahead of the curve in recognizing the importance of long-term support for the development of advanced biofuels, it is overlooking the increasingly challenging environment in first generation biofuels. Simply put- and purely in my opinion- there will be no second generation of biofuels if the first generation does not again thrive. The ethanol industry has hit a blend wall that the EPA has not been willing to help them overcome in the short term. Adding $1.6 million in E-85 infrastructure is but a chip in that wall when one considers the massive costs involved in building a national infrastructure. On the biodiesel side, the current industry has not yet received an extension of its tax credit and was already facing severe challenges. The investors who supported the expansion of the first generation biofuels industry are still tracking their investments and the policy support for the industry. While government funding will further the development of the science of advanced biofuels, private sector involvement will be essential to the ultimate commercialization of these fuels. To accomplish its ultimate goals, the Administration will need to begin to address these issues in a systematic manner.
Upcoming Webinar: Stimulus Bill Part 3 - The DOE Loan Guarantee Program for Clean Energy Projects
We invite you to join us for the third installment of our complimentary Stimulus Bill Webinar series. This session will focus on the Department of Energy’s (DOE) Loan Guarantee Program, which received nearly $6 billion in Stimulus Bill funding. The DOE recently redesigned the program in an effort to bring private capital back to large-scale renewable energy project development. Since the release of the Financial Institution Partnership Program (FIPP) solicitation, there have been some promising initial signs with several prominent U.S. and European-based banks actively supporting projects.
Our panel of experts includes a current DOE program official with knowledge of the program's intricacies, an investment banker who was a former director of the program and a Stoel Rives attorney who is assisting clients through the application process. The webinar will discuss the innovative and commercial programs, FIPP, the evolving rules for the program, the application process and the type of projects the program was developed to support.
Speakers:
Richard Corrigan, Senior Advisor, Department of Energy's Loan Guarantee Program
Walter S. Howes, Former Director of DOE's Loan Guarantee Program, current Managing Partner, Verdigris Capital LLC
Graham Noyes, Former VP of Sales and Business Development, Imperium Renewables LLC; current Attorney, Stoel Rives LLP
When:
Wednesday, December 2, 2009
10 a.m. Pacific; 11 a.m. Mountain; noon Central; 1 p.m. Eastern
Cost:
Complimentary
Register:
Register online at http://www.stoel.com/webcasts
DOE to release eagerly awaited commercial solicitation
On a webinar yesterday, Michael Fraser, Senior Program Manager at the DOE, advised that the DOE plans to release a commercial solicitation for the loan guarantee program later this month or in early October. The current solicitation that is active for renewable energy projects requires that projects satisfy the innovative requirement. A project is defined as innovative only if it has not been employed in three or more similar applications in the US of five years duration. Thus many established renewable energy projects such as those utilizing wind or geothermal technology that is tested and proven, cannot apply under the current solicitation. The release of a commercial soliciation has been eagerly awaited by renewable energy project developers. These loans will be backed by private banks as well with DOE typically only guaranteeing 80-90% of the loan. DOE hopes that this structure will motivate private lenders to perform much of the due diligence necessary and only bring shovel-ready and bankable projects to the table. Interest rates on the loan are anticipated to run at Treasury plus 25 to 75 basis points. This is a very attractive interest rate but there are substantial fees associated with the program that will offset a portion of this value. The other key factor for projects to consider is whether they will be able to meet American Reinvestment and Recovery Act requirements and thus be eligible to have their credit subsidy costs covered by government funding. I am cautiously optimistic that DOE will be successful with these efforts and we will see a flurry of good projects moving forward Q1-Q2 2010 with the assistance of this program.
Free Webinar on Loan Guarantee Program Hosted by DOE
The U.S. Department of Energy is hosting a free webinar on "How to Build a Strong Application" for the DOE Loan Guarantee Program on Tuesday, September 8, 2009 from 1:00 PM - 2:00 PM EST. The webinar is intended to explain the loan guarantee program and help lenders and applicants navigate the application process. DOE will also be providing suggestions on how to create a strong loan guarantee application.
DOE recently released two solicitations under the program for innovative energy efficiency, renewable energy and advanced transmission and distribution technologies and transmission infrastructure investment projects. DOE is particularly interested in wind, closed-loop biomass, open-loop biomass, geothermal, landfill gas, trash-to-energy, hydropower and solar projects that are able to commence construction before September 30, 2011.
DOE will be hosting a series of free webinars on the application process over the next few months.
DOE Unveils Hydrodynamic Testing Facilities Database
The U.S. Department of Energy's (DOE) Wind and Hydropower Technologies program recently unveiled a new database containing information on the test capabilities and services of a variety of U.S. hydrodynamic test facilities.
The first-of-its-kind database encompasses 81 commercial, academic, and government facilities and offshore berths in 18 states, and will directly facilitate the testing of technologies designed to extract energy from waves and the currents of oceans, tides, and rivers. The database will serve as a platform for marine and hydrokinetic technology developers to identify a U.S. facility where they can test and validate their prototype devices. Users can find out more information on dimensions, costs, and available personnel, as well as available sensors and applicable software used to gather and present data gathered during in-water testing.
For more information, please contact Cherise Oram.
Show Me the Money: $141 Million Awarded Under State Energy Program
From our colleague Christina Asavareungchai:
Today, the Department of Energy announced more than $141 million in Recovery Act funding to six states and territories under its State Energy Program (“SEP”). Here is how the funds will be used in Hawaii, Maine, Nebraska, New Mexico, the Northern Mariana Islands, and Texas:
Hawaii will use its SEP funds to directly finance high-performance buildings, retrofits, and other energy-saving measures, in addition to training professionals in the building and design industry about energy efficiency. After demonstrating success in the execution of its plan, Hawaii will receive additional funds of nearly $13 million, for a total of almost $26 million.
Maine will use its SEP funds to improve energy efficiency across multiple sectors. The funds will facilitate the establishment of more energy-efficient building codes, as well as the expansion of programs that aim to improve the energy efficiency of businesses and homes. After demonstrating success in the execution of its plan, Maine will receive additional funds of more than $13 million, for a total of over $27 million.
Nebraska will use its SEP funds to promote energy efficiency and renewable energy. The state will establish more efficient building energy codes, offer energy efficiency training, and fund programs that offer low-interest loans to the commercial and industrial sector. After demonstrating success in the execution of its plan, Nebraska will receive additional funds of more than $15 million, for a total of over $30 million.
New Mexico will use its SEP funds to offer financial incentives for the purchase of fuel-efficient vehicles, alternative fuels, and investments in related infrastructure. The state will also fund building retrofits, energy audits, the establishment of energy codes, and the expansion of the Weatherization Assistance Program. After demonstrating success in the execution of its plan, New Mexico will receive additional funds of nearly $16 million, for a total of almost $32 million.
The Northern Mariana Islands will use its SEP funds to improve the energy efficiency of its buildings, establish energy efficiency policies, and educate the public about energy efficiency. After demonstrating success in the execution of its plan, the territory will receive additional funds of more than $9 million, for a total of over $18 million.
Texas will use its SEP funds to establish a revolving loan program for improving energy efficiency at public facilities and to offer competitive grants to state agencies, schools, hospitals, and communities for the implementation of renewable energy technologies. Texas will also use its funds to provide training for green jobs and to launch an educational campaign designed to teach the public about the link between energy conservation, reduced emissions, and job creation. After demonstrating success in the execution of its plan, Texas will receive additional funds of $109 million, for a total of almost $219 million.
DOE Announces $59 million in Conditional Loan Guarantees
On July 2, 2009, the Department of Energy ("DOE") announced $59 million in conditional loan guarantees in the form of $16 million for a wind turbine assembly plant and $43 million for a 20 megawatt flywheel energy storage plant.
Nordic Windpower, USA has been conditionally offered a $16 million loan to support the tooling and commercial-scale set up of its assembly plant in Pocatello, Idaho. This assembly plant produces one megawatt two blade turbines which are 10% less costly to manufacture, install, operate, and maintain than competing systems.
Beacon Power was conditionally offered a $43 million loan to support the construction of a 20 megawatt flywheel energy storage plant in Stephentown, New York. The flywheel system is utilizing a newly developed technology to provide frequency regulation services by absorbing and discharging energy to maintain the consistency of power on the electric grid.
Show Me the Money: $304 Million Allocated to Three States for Weatherization Assistance Programs
On Friday, June 25, 2009, the Department of Energy ("DOE") announced more than $304 million in Recovery Act funding to three states for their weatherization assistance programs. The DOE’s Weatherization Assistance Program will enable families making up to 200% of the federal poverty level – about $44,000 a year for a family of four – to save on energy costs by increasing the energy efficiency of their homes.
Here is a summary of how the funds will be used in Georgia, Illinois, and New York:
Georgia will use its funds to weatherize more than 13,600 homes over three years, with priority given to homes occupied by elderly residents and elderly residents with disabilities. After demonstrating success in the execution of its plan, Georgia will receive $62 million in additional funds, for a total of almost $125 million.
Illinois will use its funds to weatherize nearly 27,000 homes over three years. The state will provide sub-grants to existing local agencies that have effectively provided energy audits and home weatherization in the past, followed by final inspections of weatherized homes. In addition, Illinois will expand its training and certification program to prepare its workforce for the weatherization assistance program. After demonstrating success in the execution of its plan, Illinois will receive over $121 million in additional funds, for a total of more than $242.5 million.
New York will use its funds to weatherize more than 45,000 homes over three years. The state plans to coordinate its weatherization program with other state agencies to maximize benefits to low-income clients. The state will also encourage weatherization assistance to be rendered along with services provided by non-federal sources, like utilities and the Red Cross. After demonstrating success in the execution of its plan, New York will receive $197 million in additional funds, for a total of more than $394 million.
DOE Announces $154 million in Funding for State Energy Programs
Yesterday, the Department of Energy (“DOE”) announced more than $154 million in Recovery Act funding to four states for their State Energy Programs (“SEPs”). The funds were awarded to California, Missouri, New Hampshire, and North Carolina. The funding is to be provided in two stages to the four states with the second stage requiring successful performance at the first level. The funding is to be utilized in the areas of energy efficiency, workforce training, education and related programs.
California will use its SEP funds to finance a statewide retrofit program, provide clean energy to buildings and facilities, and develop a public education and outreach program focusing on the advantages of energy efficiency. In addition, California will use its SEP funds to further develop a green workforce in the areas of energy efficiency and clean energy. After demonstrating success in the execution of its plan, California will receive additional funds of more than $113 million, for a total of $226 million.
Missouri will use its SEP funds to increase energy efficiency through various measures, including the expansion of existing home efficiency programs, building energy codes, and training programs. Missouri will also examine its most energy-intensive industrial/manufacturing sectors for energy-saving opportunities and will increase energy efficiency through a program that may include energy audits, rebates, and low-interest loans. After demonstrating success in the execution of its plan, Missouri will receive more than $28.6 million of additional funds, for a total of over $57 million.
New Hampshire will use its SEP funds to advance energy efficiency and renewable energy through building codes, competitive loans and grants, and financial and technical assistance to businesses and other institutions. New Hampshire will also support energy efficiency upgrades to colleges, universities, and state-owned buildings. After demonstrating success in the execution of its plan, New Hampshire will receive more than $12 million of additional funds, for a total of over $25.8 million.
North Carolina will use its SEP funds to promote energy efficiency and renewable energy through competitive grants, revolving loans, and education and training programs designed to encourage investment in energy-related technologies. The state will also establish a training program in its community colleges and universities to prepare workers for the green economy. After demonstrating success in the execution of its plan, North Carolina will receive $38 million of additional funds, for a total of $76 million.
$480 Million Available for Integrated Biorefinery Projects
Last week DOE released a new funding opportunity announcement for up to $480 million for pilot-scale and demonstration-scale integrated biorefinery projects. An integrated biorefinery uses an “acceptable feedstock” to produce a biofuel or bioproduct as the “primary product.” Acceptable feedstocks include:
- Algae
- Certain woody biomass
- Renewable plant materials so long as it is not generally intended for use as food
- Crop reside (cobs, stover, etc.)
- Yard and food waste
- Certain post-sorted MSW
The projects must be either pilot-scale (processing at least one dry tonne of feedstock per day) or demonstration-scale (processing at least 50 dry tonnes of feedstock per day).
The maximum award for a pilot-scale project is $25 million and the maximum award for a demonstration-scale project is $50 million. Generally, the cost share requirements from non-Federal sources are 20% for pilot-scale projects and 50% for demonstration-scale projects.
Applications are due June 30, 2009. Although not required, DOE suggests all prospective applicants submit a notice of intent to apply, which can be submitted through May 29, 2009.
Visit www.grants.gov or www.fedconnect.net for more information on this opportunity.
