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Recovery Resources
Summary of Energy Efficiency Provisions
Strategies to Prepare for Stimulus

NEW: ACEEE Report on Municipal Energy Efficiency Efforts

Energy Efficiency Program Options for Local Governments under the 2009 American Recovery and Reinvestment Act

Resources Provided by the ACEEE Economic and Social Analysis Team

ACEEE Energy Stimulus Jobs Impact Calculator (.xls)

User Guide (.pdf)

Department of Energy

www.energy.gov/recovery

Energy-Efficiency and
Conservation Block Grants

$3.2 billion, $400 million of which will be awarded on a competitive basis to grant applicants

The EECBG program provides federal grants to units of local government, Indian tribes, states, and U.S. territories to reduce energy use and fossil fuel emissions, and for improvements in energy efficiency.

State Energy Program (SEP)

$3.1 billion, determined by formula. To get funds, Governor needs to provide assurances regarding utility regulatory policies, building code requirements and the prioritization of existing state programs.For more information on the building code conditions, review the resources offered by the Bulding Codes Assistance Project

SEP provides grants to states and directs funding to state energy offices.The states design and carry out their own RE and EE programs. SEP projects are managed by state energy offices, not DOE.

Weatherization Assistance Program (WAP)

$5 billion, allocated by formula. WAP enables low-income families (less than 200% of the poverty level) to permanently reduce their energy bills by making their homes more energy efficient. Each home may receive up to $6,500 in assistance for energy retrofits. WAP directs funds to states, which allocate its share of funding to local governments and jurisdictions.

Energy-Efficient Appliance Rebate

$300 million to provide consumers with rebates to buy energy-efficient ENERGY STAR products to replace old appliances.

Advanced Research Projects Agency—Energy (ARPA-E)

$400 million for ARPA-E to support "transformational" or "breakthrough" energy research.

DOE Energy Efficiency and Renewable Energy (EERE) Research

$1.2 billion for applied research, development, demonstration, and deployment activities at EERE. Of this, $50 million is to improve the efficiency of information and communications technology.  The remaining allocation is up to DOE. This amount does not include additional money specifically allocated for R&D on advanced batteries, biomass and geothermal energy.

Alternative-Fueled Vehicles

$300 million for grants to states, localities, and metropolitan transit agencies for the purchase of alternative fuel and advanced technology vehicles. $400 million in transportation electrification grants for a variety of modes, including highway vehicles, airport ground support vehicles, and ships.

Smart Grid and Grid Modernization

$4.5 billion for smart grid R&D, demonstration projects, worker training, transmission planning, and matching grants.

Advanced Battery Manufacturing Grants

$2 billion for facility funding grants to manufacturers of advanced battery system components.

Other Energy Efficiency Provisions

Department of Defense

$3.69 billion "to invest in energy efficiency projects and to repair and modernize" DOD facilities. Thus far, $120 million has been dedicated to energy conservation.

$300 million for near-term EE technology demonstrations and research.

Department of Housing and Urban Development

$250 million to Assisted Housing Stability, for grants or loans for energy-efficient modernization and "green" investments of HUD-assisted housing.

$1 billion* for the Public Housing Capital Fund, awarded competitively for "investments that leverage private sector funding or financing for renovations and energy conservation retrofit investments."$255 million* for Native American Housing Block Grants, for new construction, acquisition, and rehabilitation, including energy efficiency, energy conservation, and infrastructure development.

$2.25 billion* for the HOME Investment Partnerships Program, state housing finance agencies for low-income housing. The program encourages funding for energy-efficient and environmentally friendly design.

General Services Administration

$4.5 billion to convert GSA facilities to high-performance green buildings. $300 million for the procurement of energy-efficient vehicles for use in federal fleets.

Department of Labor

$500 million for research, labor exchange, and job training projects that prepare workers for careers in energy efficiency and renewable energy.

Environmental Protection Agency

$1.2 billion* available through state revolving loan funds for several water-related uses, including energy efficiency. $300 million to EPA for the Diesel Emissions Reduction Program.

Department of Education

$8.8 billion* available for modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including retrofits consistent with a recognized green building rating system.

Department of Veteran Affairs

$1 billion* for non-recurring maintenance, including energy projects.

Department of Interior

$884 million* for construction activities that may include energy-efficient retrofits of existing facilities: $180 million for Bureau of Land Management, $115 for U.S. Fish and Wildlife Service, $589 million for National Park Service.

Department of Transportation

$100 million for discretionary grants to public transit agencies for capital improvements that will assist in reducing energy consumption or greenhouse gas emissions of their public transit systems.

State and Local Administrators

State and local governments charged with implementing stimulus funds should prepare a strategy to ensure the effective use of resources.

Read our newest resource for local governments, provided by ACEEE:

Energy Efficiency Program Options for Local Governments under the American Recovery and Reinvestment Act of 2009

Identify Existing Programs
The first measure for administrators should be to identify existing energy efficiency programs, including ratepayer-funded programs operated by both investor-owned and consumer-owned utilities, which would benefit from additional funding. The recovery package requires recipients of funds for all infrastructure activities under Sec. 1102 to give preference to quick-start, or “shovel-ready,” activities. Furthermore, the guidance for the State Energy Program obligates states to prioritize and expand existing programs to the extent practicable. Existing energy efficiency programs implemented by state energy offices, public benefit funds, and utilities have the infrastructure and human capital to get people working as quickly as possible. ARRA funds may be used to create new programs, but they must not supplant or replace existing funding.

Choose the Right Programs
A program created with recovery funding should be capable of sustaining itself after the flow of funds has subsided. New programs must be part of a broader, comprehensive energy strategy that emphasizes cost-effectiveness and economic growth. If it is necessary to start from scratch, the following programs and resources are recommended:

• Programs to promote energy efficiency in residential housing, such as Home Performance with ENERGY STAR
• Training and education programs for building designers, contractors, engineers, and technicians to promote building and industrial plant efficiency
• Funding to improve building code compliance such as improved training for code inspectors and hiring circuit riders to work with local code inspectors
• Programs for comprehensive retrofits in commercial buildings
• Programs such as the EPA ENERGY STAR Portfolio Manager to assess energy usage among public buildings to identify priority buildings to retrofit
• Programs to speed up and leverage the use of performance contracting in public buildings
• Programs for the development of building retrofit standards and regulations
• Revolving loan programs to help finance energy efficiency retrofits in public buildings
• Programs of public education to promote energy conservation
• Systematic lighting efficiency upgrades for public buildings
• Incorporate energy efficiency criteria into procurement procedures for public facilities and government fleets
• Promote carpools, vanpools, and public transportation
• For more information on how to utilize EPA resources for projects funded through ARRA, read the State and Local Guide to U.S. EPA Climate and Energy Program Resources (.pdf) or visit EPA’s state and local clean energy webcast series.
• Be certain to utilize the Rapid Deployment Energy Efficiency (RDEE) Toolkit, developed through a joint effort of the EPA and DOE, building upon technical information provided by the Leadership Group of the National Action Plan on Energy Efficiency.
• FMI on energy saving performance contracts, click here
• FMI on energy efficiency loan programs, read a useful brief provided by the Alliance to Save Energy
• FMI on best practices, visit the NASEO Energy Program Best Practices Website and ACEEE’s State Current

Prepare to Report Your Results
Once programs are identified as possible recipients of funds, it will be necessary to create a baseline set of data for existing programs. The baseline should include information on the 2008 funding levels and the anticipated funding levels for 2009 and 2010. The recovery package places a heavy emphasis on transparency and the regular reporting of activities carried out with ARRA funding. Funding for the State Energy Program, for example, will be released to states and municipalities based on milestones set by the Department of Energy. The emphasis on reporting necessitates that states and other implementers have reliable economic and energy savings data. Administrators should be aware of the critical reporting metrics, including: job creation (number, type, duration), energy savings, and emissions reductions (CO₂ equivalents).

Collaborate and Manage Effectively
Administering the recovery funds at all governmental levels poses a major challenge. In preparation for the coming stimulus funds, it will be necessary for these agencies to collaborate with every potential ally at the federal, state, county, municipal level. Beyond governmental resources, reach out to any non-profits, trade associations, or related organizations that may be able to provide assistance. Communication between recovery administrators and recipients will be essential for the funds to be released rapidly and have the greatest impact on the economy.

Potential Beneficiaries

Consumers can take advantage of the stimulus funds in several ways. The extended and enlarged tax incentives for energy efficiency in the recovery package presents the most direct opportunity for consumers to save money and energy. Visit ACEEE’s tax incentives resource, the Tax Incentives Assistance Project for more details. Private businesses will have an opportunity to take advantage of recovery funds. Businesses in the energy services sector (energy auditors, home weatherization suppliers, and energy-efficient product manufacturers) will see increased demand, but there is enough flexibility in the federal guidance to date to allow companies to develop creative energy efficiency projects. Some key strategies for potential beneficiaries:

Communicate with Recovery Administrators
In the early stages of recovery implementation, it is imperative to keep an ear to the ground and understand who is administering the funds and what types of projects they seek to implement. Consumers and private businesses with potential energy efficiency projects should contact local and state governments and inquire about energy efficiency and conservation block grants and state energy program funds, in particular. The ways in which administrators distribute the recovery funds will vary greatly, so communication with any potential allies will be essential to stay up to date on notices of funding availability and other opportunities in states and municipalities.

Recovery.gov
State Recovery Web Sites
Agency Recovery Web Sites
State Energy Offices

Learn about Grants and Contracting Requirements
To become eligible for federal grants and third-party contracting, several one-time actions are required to submit an application. Programs run through states and municipalities will entail different requirements. Contact state or local governmental entities for details. In order to apply for grants or to contract with the federal government, become familiar with FedConnect, the mechanism for application. Follow the steps below to register as a qualified applicant. This will be necessary for those applying to the Energy Efficiency and Conservation Block Grant Program, for example:

1. Obtain a Dun and Bradstreet Number:
Dun and Bradstreet Data Universal Numbering System (DUNS) site

2. Complete a Central Contractor Registration:
Central Contractor Registration site

3. Register with FedConnect:
FedConnect site

4. Download the application package, forms and instructions from Grants.gov (for those proposals that fall under the grants provisions)
Grants.gov site
Grants.gov search page for ARRA grants

Keep a close eye on notices of funding availability from federal agency recovery sites and grants.gov and check in often with contacts or web sites of state energy offices, state governments, and municipal governments. Undoubtedly, these organizations will be busier than ever, but their duty is to dispense these funds as quickly as possible.

Concentrate on Job Creation
Make sure project plans reflect the needs of administrators. The top priority for projects undertaken with recovery funds is to stimulate economic growth and create jobs. Project plans must include estimates for the type and number of jobs that will be created, as well as the speed at which this occurs.

Create a Sound Project Management Plan
The recovery package emphasizes transparency and accountability. State and local governments seeking contractors or grant recipients will be searching for companies that have prepared a justified financial plan that offers clear value in line with the energy goals of the locality. Along with cost estimates, the project management plan should include energy savings potential and a specific schedule for completion. These elements are essential for state and local governments, since they may be obligated to report on milestones to federal agencies on categories such as job creation, spending timelines, and energy saved.