State Energy Program

Michele M. Farris, P.E., CEMState Energy Manager

Michele M. Farris, P.E., CEMState Energy Manager

American Recovery and Reinvestment Act

Signed into law February 17, 2009 Authorized $36.71 billion to the Department

of Energy Objectives of the Act

– Job creation, preservation and economic recovery

ARRA Special Terms and Conditions

Governor’s Assurance– De-couple utility rates– Adopt building codes– Prioritize grants toward funding energy efficiency and renewable energy

programs Reporting, tracking and segregation of costs Reporting on job creation and preservation Ensure that iron, steel and manufactured goods are produced in

the US Ensure wage rates are comparable to those prevailing on projects

of a similar character (Davis Bacon) Funds obligated by 9-30-2010 expended 3-31-2012

Energy Efficiency & Renewable Energy

State Energy Program Grant Opportunities– PY 2009 Formula Award.– 2009 ARRA Formula Grants. – Energy Efficiency Conservation Block Grant (EECBG)– State Energy Efficient Appliance Rebate Program (SEEARP)

The ARRA Act Authorized $16.8 billion to EERE– PY 09 Formula award $25 million (SD $165,000)– ARRA SEP $3.069 billion (SD $23,709,000)– EECBG $2.8 billion (SD $13,167,500)– Appliance Rebates $300 million (SD $772,000)

Goals of State Energy Program

Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government.

Reduce reliance on imported energy Improve the reliability of electricity and fuel supply

and the delivery of energy services. Reduce the impacts of energy production and use

on the environment.

PY 2009 SEP

Funds awarded July 1, 2009 Energy Efficient Government Buildings

– $1,782,314 Energy Loan

– $4,187,892

ARRA SEP

Funds awarded June 24, 2009– Contain NEPA contingency

ARRA Energy Efficient Government-Buildings– $3,000,000

ARRA Revolving Energy Loan– $20,495,755

PY 2009 and ARRA SEP

Funds allocated for state owned facilities– Statewide Energy Audit– Installation of ethanol fueling pumps at 3 fleet

locations (SF, Rapid, Pierre)– Building retrofits

Projects managed by Office of State Engineer Revised contract language to reflect ARRA

requirements

Energy Efficiency Conservation Block Grant

State has not received award 10 most populous cities and counties receive direct grant

from DOE– Cities

• Aberdeen ($107,900) Watertown ($90,800)• Brookings ($87,600) Yankton ($61,600)• Huron ($50,000)• Mitchell ($65,200)• Pierre ($61,700)• Rapid City ($649,900)• Sioux Falls ($1,513,600)• Vermillion ($50,000)

Energy Efficiency Conservation Block Grant

10 most populous cities and counties receive direct grant from DOE– Counties

• Brown ($50,000) Todd ($50,000)• Lake ($50,000) Union ($64,800)• Lawrence ($99,200)• Lincoln ($110,700)• Meade ($97,200)• Minnehaha ($129,300)• Pennington ($125,800)• Shannon ($58,700)

Energy Efficiency Conservation Block Grant

SEO must provide 60% ($6,562,460) of award to local governments not directly funded by DOE

Remaining 40% ($3,188,306) stays in SEP– public and private sector– K-12 and technical schools– non-profit community based programs– non funded local governments

Zero interest loans

Energy Efficiency Conservation Block Grant

Project Criteria– competitive basis– simple payback– energy savings– job creation/retention– sustainability of the project– community benefit– local fund participation

State Energy Efficient Appliance Rebate Program

State allocated $772,000 Initial application submitted August 14, 2009 State plan due no later than October 15, 2009 Funds must be expended by February 2012 Rebates for ENERGY STAR Appliances Rebates for residential consumers