American Recovery and Reinvestment Act: Advancement of Energy Efficiency

1
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 Councils 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 4.5B
• 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- 38.5 million
• RI 23.9 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 14.5 million
• Vt 10.3 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
• [phone] x13259
• Steve.Cowell_at_csgrp.com
• www.csgrp.com