Washington Revising its State Energy Strategy
The Washington State Department of Commerce (formerly the Department of Community, Trade and Economic Development or CTED) has announced that it is attempting to revise Washington’s comprehensive energy plan (the “State Energy Strategy”).
The State Energy Strategy was last revised in 2003, and it does not serve current energy realities and forecasts. Therefore, the Washington State Legislature has tasked the Department of Commerce with updating the State Energy Strategy while taking account the following three goals and nine principles:
Goals:
1) Maintain competitive energy prices;
2) Foster a clean energy economy and jobs; and
3) Meet obligations to reduce greenhouse gas emissions.
Principles:
1) Pursue all cost-effective energy efficiency and conservation as the state's preferred energy resource, consistent with state law;
2) Ensure that the state's energy system meets the health, welfare, and economic needs of its citizens with particular emphasis on meeting the needs of low-income and vulnerable populations;
3) Maintain and enhance economic competitiveness by ensuring an affordable and reliable supply of energy resources and by supporting clean energy technology innovation, access to clean energy markets worldwide, and clean energy business and workforce development;
4) Reduce dependence on fossil fuel energy sources through improved efficiency and development of cleaner energy sources, such as bioenergy, low-carbon energy sources, and natural gas, and leveraging the indigenous resources of the state for the production of clean energy;
5) Improve efficiency of transportation energy use through advances in vehicle technology, increased system efficiencies, development of electricity, biofuels, and other clean fuels, and regional transportation planning to improve transportation choices;
6) Meet the state's statutory greenhouse gas limits and environmental requirements as the state develops and uses energy resources;
7) Build on the advantage provided by the state's clean regional electrical grid by expanding and integrating additional carbon-free and carbon-neutral generation, and improving the transmission capacity serving the state;
8) Make state government a model for energy efficiency, use of clean and renewable energy, and greenhouse gas-neutral operations; and
9) Maintain and enhance our state's existing energy infrastructure.
The Department of Commerce is opening a collaborative process to update and revise the State Energy Strategy and has invited stakeholders to participate. In order to assist collaboration, the Department of Commerce has created a website hosting information about past energy strategies, guiding legislation, advisory and technical committee activities, and a schedule of events. Moreover, the public can sign up for list serve to receive updates and provide feedback.
Show Me the Money: State Energy Programs for Seven States and Territories Awarded $119 Million from the American Recovery and Reinvestment Act ("Recovery Act")
On August 14, 2009, the Department of Energy ("DOE") State Energy Program ("SEP") announced that more than $119 million in funding from the Recovery Act to support energy efficiency and renewable energy projects has been awarded to Alabama, American Samoa, the District of Columbia, Illinois, Maryland, North Dakota and Wyoming.
Here is a summary of how the monies will be used by each of the states and territories:
- Alabama has been awarded $22,228,000 in federal stimulus funds. Alabama will utilize the Recovery Act SEP funding to promote energy efficiency of businesses (with a particular focus on the automotive supplier industry), schools, and correctional facilities and the development of renewable energy resources in the state. The state will also use funds to create a new "energy revolving loan fund" to stimulate the creation and retention of jobs and increase the generation of renewable energy by providing low-interest loans for new and existing industries in the state. The loans will be used for the installation of renewable energy systems and the implementation of energy efficiency measures. After demonstrating successful implementation of its plan, Alabama will receive nearly $28 million in additional funding, for a total of more than $55 million. Click here for more information regarding Alabama's state energy program and use of Recovery Act funds.
- American Samoa was awarded $7,420,000 in federal stimulus funds. American Samoa will utilize the Recovery Act SEP funding to expand the use of renewable energy across the territory, as well as to supplement weatherization funds to improve home energy efficiency for low-income residents. Specifically, the territory will install a 1,000 kW photovoltaic solar-energy array near the Tafuna Power Station, 19 smaller 28 kW solar arrays on the roofs of government and other buildings, and a solar water heating system at the LBJ Tropical Medical Center. American Samoa is also interested in expanding its use of wind power, and will use Recovery Act funds to set up eight anemometers to measure and quantify the territory's wind potential. After demonstrating successful implementation of its plan, the territory will receive more than $9 million in additional funding, for a total of $18 million.
- The District of Columbia was awarded $8,808,800 in federal stimulus funds. The District of Columbia will utilize the Recovery Act SEP funding to improve energy efficiency in government buildings and support numerous public energy education initiatives. Specifically, the state will use funds to replace existing mechanical and electrical equipment at various DC properties with new energy efficient equipment and controls. After demonstrating successful implementation of its plan, the District will receive an additional $11 million, for a total of more than $22 million.
- Illinois has been awarded $40,528,400 in federal stimulus funds. Illinois will utilize the Recovery Act SEP funding for energy efficiency retrofits and the biofuels industry. Specifically, the state will provide grants to support new biomass manufacturing capacity or retrofits to existing facilities that will help reduce operating expenses and the environmental impact of biofuels manufacturing. The state will also use the Recovery Act SEP funds to provide grants to various entties including schools, public buildings, and industrial facilities to improve energy efficiency in new and existing buildings, facilities, equipment, and processes. After demonstrating successful implementation of its plan, Illinois will receive more than $50 million in additional funding, for a total of more than $101 million. Click here for more information on Illinois's state energy program and use of Recovery Act funds.
- Maryland has been awarded $20,708,880 in federal stimulus funds. Maryland will utilize the Recovery Act SEP funding to promote clean and efficient energy usage in the transportation, residential, commercial, and industrial sectors. The state will also provide grants to support cost-effective and environmentally responsible building retrofits, along with innovative public-financing programs such as the EmPOWER financing initiative that will enable property owners to leverage private capital in order to implement efficiency improvements. Other uses for the funding will focus on supporting educational and workforce training efforts that will help familiarize the state's workforce with important sustainable energy approaches. After demonstrating successful implementation of its plan, Maryland will receive $26 million in additional funding, for a total of more than $51 million.
- North Dakota has been awarded $9,834,000 in federal stimulus funds. North Dakota will utilize the Recovery Act SEP funds to promote various energy efficiency and conservation efforts, including providing energy education resources for North Dakota's agricultural and industrial sectors that will help farmers, ranchers, contractors and building tradesmen reduce their energy use. The state will also lead by example by improving energy efficiency of state buildings and installing renewable energy systems at state facilities. Funds will also be used to create a statewide energy efficiency and renewable energy rebate program, in partnership with investor-owned and municipal utilities and rural electric cooperatives. In addition, the state will establish an Emergency High Efficiency Furnace Rebate Program, which will assist victims of the 2009 spring floods with the incremental cost of installing a high efficiency furnace to replace standard efficiency furnaces and heating systems. After demonstrating successful implementation of its plan, North Dakota will receive over $12 million in additional funding for a total of more than $24 million.
- Wyoming has been awarded $9,976,400 in federal stimulus funds. Wyoming will use its Recovery Act SEP funds to promote energy efficiency in buildings and homes across the state. The state will make grants to governmental and tribal entities, nonprofit organizations, and others for the purpose of retrofitting existing facilities to improve their energy efficiency by a minimum of 25%. Wyoming will also use the Recovery Act funds to provide rebates to help middle-income homeowners that are not eligible for low-income weatherization assistance to increase energy efficiency of their homes. In addition, Wyoming will provide rebates of up to $5,000 to homeowners for installing residential renewable energy systems, including solar photovoltaic, wind and geothermal systems. After demonstrating successful implementation of its plan, the state will receive more than $12 million in additional funding, for a total of nearly $25 million.
Show me the Money: $54 million in Funding for State Energy Programs
From our colleague Christina Asavareungchai:
Today, the Department of Energy announced more than $54 million in Recovery Act funding to four states under its State Energy Program ("SEP"). Here is how the funds will be used in Nevada, Rhode Island, Vermont, and Wisconsin:
Nevada will use its SEP funds to create a revolving loan fund, which will help finance renewable energy and energy efficiency projects. Nevada will also perform energy efficiency retrofits in state buildings and schools, in addition to installing more energy-efficient street and traffic lights statewide. After demonstrating success in the execution of its plan, Nevada will receive additional funds of over $17 million, for a total of almost $35 million.
Vermont will use its SEP funds to establish programs that advance energy efficiency across multiple sectors. Specifically, Rhode Island will support businesses and homes in their effort to reduce energy consumption, in addition to updating the state’s building energy codes. After demonstrating success in the execution of its plan, Rhode Island will receive additional funds of nearly $12 million, for a total of almost $24 million.
Wisconsin will use its SEP funds to help improve the energy efficiency of existing industrial facilities, in addition to investing in businesses that manufacture clean energy technologies and components. The state will also offer loans to a broad audience. After demonstrating success in the execution of its plan, Wisconsin will receive additional funds of nearly $28 million, for a total of over $55 million.
Rhode Island will use its SEP funds to offer financial assistance for renewable energy and energy efficiency projects in the public, private, and residential sectors, in addition to facilitating the installation of thermal solar renewable energy systems in low-income households. After demonstrating success in the execution of its plan, Vermont will receive additional funds of nearly $11 million, for a total of almost $22 million.
Show me the Money: $162 million Deployed to Seven State Energy Programs
From our colleague Christina Asavareungchai:
Today, the Department of Energy announced more than $162 million in Recovery Act funding to seven states and territories under their State Energy Programs (“SEPs”). Here is how the funds will be used in Colorado, Delaware, Indiana, Louisiana, Massachusetts, Pennsylvania, and Puerto Rico:
Colorado will use its SEP funds to remove financial barriers to the rapid acceleration of renewable energy and energy efficiency projects. Colorado will also help state agencies cut their energy use, in addition to significantly expanding an existing rebate and grants program for renewable energy projects. After demonstrating success in the execution of its plan, Colorado will receive additional funds of over $24 million, for a total of more than $49 million.
Delaware will use its SEP funds to help finance energy efficiency measures in homes, small businesses, commercial buildings, and manufacturing facilities. Delaware will also offer additional rebates for solar photovoltaic and solar hot water systems, small wind applications, and geothermal systems for buildings. After demonstrating success in the execution of its plan, Delaware will receive additional funds of over $12 million, for a total of more than $24 million.
Indiana will use its SEP funds to offer financial assistance for the deployment of energy efficient technologies and to finance training programs and educational outreach about the merits of energy conservation. After demonstrating success in the execution of its plan, Indiana will receive additional funds of over $34 million, for a total of more than $68 million.
Louisiana will use its SEP funds to support energy efficiency measures in commercial buildings, as well as new and existing homes. Louisiana will also finance energy efficiency retrofits for government buildings and will encourage the use of efficient street lighting. After demonstrating success in the execution of its plan, Louisiana will receive additional funds of over $35 million, for a total of almost $72 million.
Massachusetts will use its SEP funds to promote energy efficiency statewide, finance energy efficiency upgrades of public facilities, and facilitate the demonstration of energy efficiency solutions. After demonstrating success in the execution of its plan, Massachusetts will receive additional funds of over $27 million, for a total of almost $55 million.
Pennsylvania will use its SEP funds to help finance clean energy projects initiated by businesses, nonprofit organizations, universities, local governments, and utilities, in addition to establishing a revolving loan fund aimed at facilities projects, resource efficiency, and clean energy technologies. After demonstrating success in the execution of its plan, Pennsylvania will receive additional funds of almost $50 million, for a total of almost $100 million.
Puerto Rico will use its SEP funds to provide financial assistance for private sector energy projects, as well as for building retrofits in both the public and private sectors. Puerto Rico will also support the revision of building codes, the switch to more energy efficient traffic lights, and the establishment of an education and mass media outreach program. After demonstrating success in the execution of its plan, Puerto Rico will receive additional funds of over $18 million, for a total of over $37 million.
Show me the Money: Recovery Act Finance Opportunities Conference
On July 17, 2009, the Puget Sound Regional Council hosted a Regional American Recovery and Reinvestment Act Coordination meeting. At this meeting, there was a presentation on Bond Financing, Loan Guarantees, and Tax Credits plus a discussion on monetizing energy efficiency savings.
In case you missed this meeting, I want you to be aware of a couple of resources.
First, on July 31, 2009, there is a workshop regarding Recovery Act Finance Opportunities in Washington. The workshop will be hosted by the Washington Department of Commerce (formerly the Department of Community Trade and Economic Development or CTED) and held in Bellevue, and you can register here.
Second, our tax group has issued an informative, yet concise, alert regarding the grant in lieu of the production tax credit (available here).
Show me the Money: Applications Available for the Washington State Energy Program
Washington previously received $60.9 million in Recovery Act funding for its State Energy Program (“SEP”). The Washington Legislature later provided $38.5 million to the Washington State Community, Trade and Economic Development (“CTED”) agency to administer a loan and grant program for eligible projects in the areas of energy efficiency, renewable energy and clean energy innovation (see our earlier blog entry here for more details). The deadline for submitting a notice of intent to apply is July 27, 2009 at 5:00 p.m. Pacific time, and the application is due August 17, 2009 at 5:00 p.m. Pacific time.
I attended an informational meeting held by CTED on July 13, 2009. The meeting provided an overview of the loan and grant program, as well as funding details, eligibility guidelines and evaluation criteria. Eligible projects can receive between $500,000 to $2 million in loans and grants in the first round, with the requirement that applicants provide other sources of funding at least equal to the amount of the loan or grant request. The non-SEP funding may include amounts spent or committed to the project since January 1, 2009. Projects will be evaluated based on the feasibility and quality of the project plan, the experience and qualifications of the project team, the ratio of matching funds to SEP funds, job creation, and energy savings/production. CTED intends to announce award decisions in September 2009.
Show Me the Money:$300 Million Rebate for Purchases of Energy Efficient Appliances
U.S. Department of Energy (DOE) Secretary Steven Chu today announced the availability of nearly $300 million in funding from the American Recovery and Reinvestment Act for state-run rebate programs for consumer purchases of new ENERGY STAR® qualified home appliances.
The new funding will be awarded according to a formula to states and territories that submit a plan specifying which ENERGY STAR appliance categories will be included in the program, the amount of the rebate level and other information. States and territories must first file an initial application expressing their intent to participate by August 15, 2009, followed by a full application by October 15, 2009. States and territories will receive 10% of the funds after submitting the initial application with the balance awarded after their program plans are approved. DOE anticipates that a vast majority of funding will be awarded by November 30, 2009. The complete Funding Opportunity Announcement, under number DE-FOA-000011.
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.
Show me the Money: Applications Available now for Washington's State Energy Program
On July 1, 2009, Washington State’s Department of Community, Trade and Economic Development (“CTED”) issued application guidelines and forms for its State Energy Program (“SEP”) (available by clicking here). The American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) provided $60.9 million in new funding for Washington’s SEP. Subsequently, the Washington Legislature allocated $38.5 million to CTED to administer a loan and grant program for energy efficiency and renewable energy program (see our client alert, available here, regarding the legislative action).
Eligible energy efficiency, renewable energy, and clean energy projects may be eligible for SEP funding between $500,000 and $2 million.
Eligible energy efficiency projects are those that use technologies that have been deployed at commercial scale that result in the reduction in energy consumption through increases in the efficiency of energy use, production, or distribution, and high-efficiency cogeneration. Ineligible projects are those that are eligible for Recovery Act Funding for community wide urban residential and commercial energy efficiency upgrades as described in (i) Chapter 379, Laws of 2009; (ii) Low income weatherization projects and programs which are eligible for funding through the state’s low-income weatherization program; (iii) Loans support to financial institutions for energy efficiency projects as described in Chapter 379, Laws of 2009; (iv) state energy efficient appliance rebates; and (v) green jobs training as described in Chapter 536, Laws of 2009.
Eligible renewable energy projects are those that are located in Washington and use existing commercial scale technologies that generate liquid fuels, process heat or electricity using algae, bark, biodiesel, biomass, biosolids, food waste, fresh water, gas from sewage treatment facilities, landfill gas, geothermal, pulping liquors, sawdust, solar, hydrokinetics, wind, wood chips and various other waste products. Ineligible projects include those that use the following feedstocks: municipal solid waste, wood from old growth forests, and chemically treated wood.
Eligible clean energy innovation projects include are those that offer innovative new technologies or service delivery models for energy efficiency, renewable energy, or other areas of clean energy. Projects must have a solid chance at commercial scale deployment within two to three years. Ineligible projects include carbon sequestration projects, lab scale projects, and those excluded under federal SEP guidelines.
Interested parties must file a notice of intent to apply by July 27, 2009 at 5:00 p.m. Pacific.
Full applications are due on August 17, 2009 at 5:00 p.m. Pacific.
Information workshops will be held on July 13, 14, 15, and 16. Click here for the specific dates and times. I will be attending the July 13 workshop in Everett, WA. An informational webinar will also be held on July 23.
