STATE ENERGY PROGRAM Opportunities and Challenges

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STATE ENERGY PROGRAMOpportunities and Challenges

• Western States Meeting
• Mark Bailey
• August 2, 2006

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The Road Today

• Budgets
• SEP Business
• Services
• Marketing/Communications
• Strategic Directions

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SEP Addresses Major Issues

• A vulnerable national energy infrastructure
• Rising fossil fuel prices

• Increasing dependence on foreign oil
• Impact on environment from energy use

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SEP Budget Trend
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IG Report

• DOE IG conducted an audit to determine whether
  the Department had implemented controls for the
  State Energy Program to
• ensure grant funds were used for their intended
  purpose
• determine the cost benefit of the program in
  meeting its goals
• IG Letter Report Recommendations
• Specify the monitoring responsibilities and
  staffing of the program at the PMC field sites.
• Implement regularly scheduled monitoring visits
  that address administrative, financial, and
  programmatic areas
• Completing work with the States to design
  appropriate quantifiable performance measures and
  to use the results to re-evaluate SEP
  cost/benefit.

Good News!
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IG Report EERE Response

• Monitoring working group will establish revised
  monitoring guidance and develop a coordinated
  grant monitoring schedule
• SEP Strategic Plan to include more specific and
  measurable performance measures
• A second outside review of the methodology used
  in the ORNL SEP study will soon be completed.
  Planning for the next SEP evaluation will begin
  in FY07 and will include SEO input.

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PVE Funds

• Good News OHA will distribute 42 million
  within a few days, mostly to States and local
  governments.
• Not-so-Good News No requirement that these
  funds be used for energy-related programs.
• These funds represent direct restitution to
  individual claimants for documented overcharges
• Could go into a States general fund, or to a
  specific agency
• GET YOUR BID IN EARLY!

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PVE Funds Balancing

• Significant number of discrepancies between PVE
  fund records maintained by DOE and the States
  need to reconcile as much as possible
• E-Mail to be sent out to each State with the
  information we have on file from DOEs systems
  and the State Annual Reports.
• Please follow up with Faith Lambert
  (202-586-2319, faith.lambert_at_ee.doe.gov) or
  Harvey Major (202-586-0124 or harvey.major_at_ee.doe.
  gov) with questions
• Deadline for submission of FY 2007 Annual Reports
  extended 60 days for all States to allow for
  reconciliation

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Technical Assistance (TAP)

• Policy and technical assistance for states 5k
• Four initial topic areas
• Systems benefit charges or other rate-payer
  funded utility efficiency and renewable programs
• Renewable or efficiency portfolio standards (RPS)
• Use of clean energy technologies to reduce air
  emissions
• Use of renewable energy on state or local public
  lands
• New Areas
• Use of renewables for disaster relief,
  mitigation, and planning (NEW)
• Future TA to include broader scope
• Midwest/Western States Results
• 56 requests received to date/25 states assisted
• Examples
• Analysis for Montana Governors Office on
  renewable portfolio standard design and
  implementation
• Analysis of state-level biomass feedstock
  resource for the Pacific Regional Biomass Energy
  Partnership
• Quantification of emissions reduction benefits
  from an energy efficiency project for the
  Louisiana Department of Natural Resources

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TAP Services Delivered
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Includes Multi-State Request(s)
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Marketing/Communications

• Branding SEP
• Critical to link contribution of SEP to project
  success.
• Build statewide recognition of SEO value.
• State Energy Information Group provides guidance.
  
• State energy offices submit news releases,
  project descriptions for bimonthly newsletter,
  Conservation Update, and success stories.
• WIP sponsors state-oriented Web sites for EERE
• SEP site. www.eere.energy.gov/state_energy_program
  /
• EERE State Activities Partnerships
  www.eere.energy.gov/states/

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EPAct 2005 States

• SEP Specific
• Establishes goal of 25 or more improvement in
  energy efficiency by 2012, as compared to 1990.
• Requires the Secretary of Energy, every three
  years, to invite the Governor of each State to
  review and if necessary revise the SEP State
  Plan, in consideration of the Plans of other
  States within the region
• State Energy Offices (subject to funds
  availability)
• Section 125 Establishes an Energy Efficiency
  Program for Public Buildings for States
• Section 913 Establishes a Program to
  demonstrate renewable energy in public buildings.
• Section 140 Establishes a Pilot Program of
  financial assistance to at least 3-7 States to
  plan and adopt State-wide programs that encourage
  energy efficiency (5M in Senate Mark for FY07)

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SEP Strategic Plan

• The SEP Strategic Plan, developed by State
  representatives, establishes the following goals
• Increase energy efficiency to reduce energy cost
  and consumption for consumers, business and
  government
• Reduce reliance on imported energy
• Improve the reliability of electricity, fuel and
  delivery of energy services
• Reduce the impacts of energy production and use
  on the environment
• Critical to the plan is improved metrics and
  benefit measurement.
• The draft Plan is being revised based on comments
  from States and NASEO, and should be final in
  September
• The plan responds to OMB PART identified program
  weaknesses.

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Where are we headed?

• Better Evaluation
• Marketing Selling success
• Need strategic marketing plan
• Need more partners like NGA
• Focus on programs that can be self sustaining
• Focus on Best Practices
• RFPs, RFS, Performance Contracting policies,
  Financing capital pools for EERE projects
• Market Transformation Game Changers

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www.eere.energy.gov
1-800-DOE-3732 GO PMC
Bringing you a prosperous future where energy is
clean, abundant, reliable, and affordable
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BACKUP

• GRANTS.GOV
• UNCOSTEDS
• Energy Emergency Planning
• -----
• AIR/ENERGY
• REPI

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E-GOV Grants.gov

• E-Govs budget for 2007 has been cut
• SEP Form is caught in this reduction causing
  delay in converting form to Pure Edge Viewer
• Plans are to use Grants.gov for 2007 State Plan
  submission

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Grants Management Issues

• UNOBLIGATED CARRYOVER
• Special area of emphasis
• EERE has been criticized for its financial
  management. Unobligated carryover in grants and
  contracts is being targeted
• Unobligated carryover negatively impacts our
  justifications for additional funding for SEP.

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Energy Emergency Plans

• SEP Program Notice 06-2, June 30, 2006, requests
  that States send DOE copies of most recent Energy
  Emergency Plan by 9/1/06.
• OWIP will deliver them to the DOE Office of
  Electricity Delivery and Energy Reliability
  (Alice Lippert)
• Each States plan will then be entered into the
  Offices data base to be used as a resource in
  the event of an energy emergency allows DOE to
  respond more quickly and effectively

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EERE Air Quality/Energy Integration

• DOE, in partnership with EPA and states, is
  supporting air quality/energy integration of
  policy, people, and projects.
• 15 states are actively working on EE/RE projects
  to help achieve air quality objectives with EERE
  projects
• Successes to date
• Texas is including nearly 1000 EE/RE projects in
  its NOX Sip
• The Illinois PUC looked favorably on an RPS goal
  with consideration f the air quality benefits
• Connecticut is quantifying and tracking air
  quality benefits from E/RE
• DOE has provided assistance with quantification
  of emissions avoidance, tapping expertise at NREL

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REPI

• What is REPI? - An incentive payment for public
  utilities, not for profit electric cooperatives,
  and Tribal utilities that generates and sells
  renewable energy to end use consumers.
• Qualifying Technologies - solar, wind, biomass,
  landfill gas, livestock methane, ocean, or
  geothermal energy

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REPI Contact Information

• Program policy questions contact
• Dan Beckley
• 1000 Independence Ave, SW
• Washington, DC 20585
• Email dan.beckley_at_ee.doe.gov
• For REPI implementation questions contact
• Christine Carter
• 1617 Cole Boulevard
• Golden, Colorado 80401
• Email christine.carter_at_go.doe.gov

REPI Website http//www.eere.energy.gov/wip/progra
m/repi.html