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Howard Marks, U.S. DOE
 

Howard Marks, U.S. DOE

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  • The Recovery Act, as you may know, was signed into law in February of this year. Given the great economic challenges that we’re facing today, this legislation is designed to jumpstart our economy, create millions of jobs, and make investments that will pay off continually in the future. To be successful, the Act requires the collaboration of citizens across the nation from scientists to small businesses to local government. I’m very pleased that you are all present to take part in this effort.
  • Using our homegrown resources and the ingenuity of the American workforce, the Recovery Act will help create entire new energy industries, and make strategic investments that will transform the way we use energy.
  • This slide shows the breakdown of funding by activity within EERE. Research, development, and deployment has $2.5 billion, divided up among several different energy efficient and renewable technologies including biomass, geothermal energy; and discretionary funds that have been allocated for solar, wind, and other areas. The Energy Efficiency and Conservation Block Grants, State Energy Program, and Weatherization Assistance activities total over $11 billion and are managed through the office I highlighted earlier, the Office of Weatherization and Intergovernmental Programs. There are several vehicle-related funding opportunities totaling $2.7 billion: an alternative fuel vehicle grant program, advanced manufacturing grants, and transportation electrification. Finally, $300 million goes toward energy efficient appliance rebates. I’ll speak in more detail about each of these opportunities in a few minutes.
  • EERE manages our investments in applied R&D for Clean Energy Technologies – in Power Generation, Fuels and Vehicles, and Energy Efficiency. Each dash under these categories represents a separate program office, including two offices that deploy these technologies: the Federal Energy Management Program, which works with the other Federal agencies, and the Office of Weatherization and Intergovernmental Programs, which works with State and now local governments. Some of the research-focused programs have deployment efforts as well. The Weatherization and Intergovernmental Programs office is highlighted because of its pivotal role in Recovery Act activities – the bulk of EERE’s Recovery Act funds are being administered through this office.
  • As far as direct formula funding, Florida’s allocation is about $470 million. Energy Efficiency and Conservation Block Grants have $168 million, the State Energy Program has $126 million, and $176 million goes toward Weatherization Assistance.
  • Now that I’ve given you an overview of the funding and how to apply, I’d like to discuss the individual programs in greater detail, starting with the formula grant programs. The State Energy Program is a program that was in place well before the passage of the Recovery Act. It has officially been around since 1996 and encompasses both energy efficiency and renewable energy technologies. The State Energy Program distributes funding to State governments so they can decide how best to invest in projects that take into account their States’ particular resources and needs while contributing to national energy goals.
  • The Weatherization Assistance Program is receiving $5 billion through the Recovery Act, compared to between $200-$250 million in annual appropriations. In addition to this ramp-up in funds, the program is a Presidential priority, so it has really been highlighted as a crucial part of the Recovery Act. This program helps low-income households improve the efficiency of their homes and save money on their energy bills, about $350 per year on average. The funds are allocated by formula to States, which in turn distribute the funding to local entities, usually community action agencies. The Recovery Act made some changes to the program that allow it to reach more low-income citizens and accomplish more in each home, raising the income level requirement from 150% of the poverty level to 200% and the average funding per home from $2,500 to $6,500. The cap on training and technical assistance funding was also raised from 10% to 20%.
  • Of the $52 M for Maryland, $9.6M is for the state energy office and $43M is for cities and counties. The Energy Efficiency and Conservation Block Grant Program, or EECBG, is funded for the first time with the passage of the Recovery Act. This program allocates funding directly to states, cities, counties, and tribes to support energy audits, efficiency retrofits, improved building codes, and other activities. Smaller cities and counties that did not receive a direct allocation can work with their state energy offices to access funding. The States are required to distribute 60% of the funding they receive to those cities and counties that were not eligible to receive direct funding. A couple of points to note on the EECBG program: the activities do not have to be specific projects, they can be programs. Activities that pay dividends year after year should be prioritized. Additionally, while the bulk of the EECBG has been allocated through a formula, there is a portion that will be issued through competitive grants. The details are currently being worked out and the funding will be announced as a separate funding opportunity announcement.
  • Secretary Chu and the White House are fully supportive of OWIP and have made the state and local energy programs a national priority.
  • No money has been awarded yet.  Applications were initially due on June 25.  However, only 1926 out of 2327 were submitted on time, so the deadline has been extended to August 10.  A team of almost 400 trained reviewers are processing the applications and conducting technical reviews.  Initial awards are expected before the end of July and should continue thereafter on a rolling basis. The Block Grant formula allocated funds to the top ten most populous cities and to the top ten most populous counties in Maryland. More cities and counties were not selected to receive funds because they did not meet population thresholds (35,000 for cities and 200,000 for counties).
  • No money has been awarded yet.  Applications were initially due on June 25.  However, only 1926 out of 2327 were submitted on time, so the deadline has been extended to August 10.  A team of almost 400 trained reviewers are processing the applications and conducting technical reviews.  Initial awards are expected before the end of July and should continue thereafter on a rolling basis. The Block Grant formula allocated funds to the top ten most populous cities and to the top ten most populous counties in Maryland. More cities and counties were not selected to receive funds because they did not meet population thresholds (35,000 for cities and 200,000 for counties).
  • Here is a list of eligible uses of EECBG funds, to give you an idea of the types of activities that are possible. Retrofits, building codes, and combined heat and power projects are some examples, but note that activities are not limited to this list.
  • College Park is the only city in Maryland’s 4 th Congressional District that is eligible to receive it’s entire award at one time. All other cities and counties are eligible to receive more than $250,000 in EECBG funds.
  • Spur sales of energy efficient appliances Significantly reduce energy and water use by American households States must file initial applications by August
  • The Clean Cities Alternative Fueled Vehicles Pilot Grant Program has also closed, unfortunately, but Clean Cities is an ongoing program and there are still opportunities to become involved.
  • There is yet another funding opportunity in the vehicles area, and this one is not yet closed. Including Recovery Act funding and DOE annual appropriations, $240 million is available for the development of high efficiency commercial and passenger vehicles. The funding solicitations are divided into 2 areas. The goal of the first area is to increase vehicle freight efficiency by a total of 50% for heavy-duty Class 8 trucks. The projects receiving funding will focus on improving the efficiency of advanced engine technologies and vehicle system technologies, for instance by limiting aerodynamic drag, reducing vehicle weight, and drivetrain hybridization. Under the second program area, projects will work to advance R&D on efficient engine and powertrain systems for passenger vehicles. For gasoline-fueled vehicles, these cost-competitive components will achieve at least a 25% fuel economy improvement compared to 2009 reference vehicles, while diesel-fueled vehicles will be able to attain at least a 40% improvement.
  • For Industrial Technologies, $256 million is available under 3 areas. The first is for combined heat and power, district energy systems, waste energy recovery systems, and efficient industrial equipment that can be deployed in industrial and residential settings to improve efficiency, control costs, and limit greenhouse gas emissions. The second is for RD&D for new technologies that improve energy efficiency in the information and communication technology sector. The third is for RD&D on advanced industrial materials that can be used in fuel flexibility programs, combined heat and power technologies, energy intensive processes, and nanomanufacturing.
  • For biomass and biofuels, the Recovery Act provides a mix of new funding opportunities to accelerate advanced biofuels R&D and additional funding for existing commercial-scale biorefinery demonstration projects. There is $480 million for projects that produce advanced biofuels, bioproducts, and heat and power in an integrated system, thus enabling private financing of commercial-scale replications. A $20 million competitive solicitation will select projects that optimize flex fuel vehicles operating on high octane E85 fuel, evaluate the impact of higher ethanol blends in conventional vehicles, and upgrade existing refueling infrastructure to be compatible with fuels up to E85.
  • Area 1: To support the development and deployment of energy efficient technologies in commercial and residential buildings Area 2: Residential Buildings Development/Deployment - - includes retrofits and training
  • $118 million is available for wind energy projects in several areas. Area 1: Support the wind industry through testing the performance and reliability of wind turbine drivetrain systems Area 2: Improve the quality and use of lighter weight, advanced materials for turbine blades, towers, and other components Area 3: Establishment of industry-university consortia to focus on critical wind energy challenges
  • $400 million is available for geothermal technologies. $140 million of this will go toward RD&D of enhanced geothermal systems. Conventional geothermal energy systems must be located near easily-accessible geothermal water resources, limiting its nationwide use.  EGS makes use of available heat resources through engineered reservoirs, which can then be tapped to produce electricity. Funding for innovative geothermal exploration projects, as exploration of geothermal energy resources can carry a high upfront risk. To fully leverage new low-temperature, geopressured, co-production, and EGS technologies, DOE will support the development of a nationwide assessment of geothermal resources, working through the U.S. Geological Survey and other partners.
  • Over $176 million is available for 3 different areas of solar energy technologies. Area 1: Investment in advanced PV concepts to make solar energy cost-competitive with conventional sources of energy Area 2: Focus on non-technical barriers to help clear the path for wider use in residential, commercial, and municipal environments. Area 3: Improving reliability of CSP technologies and enhancing the capabilities of DOE National Laboratories to provide test and evaluation support to the solar industry
  • I’ve now gone through all of the funding that is currently out on the street from the Office of Energy Efficiency and Renewable Energy. There is also funding available from other offices within the Department of Energy, including the Office of Electricity Delivery and Energy Reliability, which is the office in charge of the electricity grid. The Vice President announced several billion dollars in funding for smart grid development, as well as storage, monitoring, and technology viability.
  • The grant programs and demonstration projects require a 50% cost share While there are no specific limitations to the type of recipients, based on the criteria for a qualifying investment in smart grid functions, we anticipate many of the successful applicants will be utilities. Some manufacturers could also apply: for example an appliance manufacturer might apply for a grant to redesign and retool his product line to incorporate smart grid capability. For other initiatives, funds could go to state and local governments. Universities, national labs, utilities or technology companies, perhaps in partnership, are likely to pursue some of the opportunities. While the funds will not go directly to the consumer, the consumer will benefit from the improvements to the grid, and from the job growth associated with the initiatives.
  • As I mentioned earlier in the presentation, Secretary Chu is committed to making the Department’s implementation of the Recovery Act as open and transparent as possible. We are therefore posting weekly updates on our website and have set up additional web forms and call center capabilities to respond to public inquiries. If you go to our website, you can see how much Recovery Act funding has been authorized, announced, and spent. There are oversight measures in place to distribute and monitor funds, and the entities that are spending it will have to adhere to regular reporting requirements.
  • There are a few different funding vehicles that DOE uses to disburse Recovery Act funds. There are grants, contracts, and cooperative agreements with companies, universities, and other entities selected through a competitive process for research and development and industrial energy efficiency projects. Loan guarantees provide the full faith and guarantee of the Federal government to fund projects selected through a solicitation process. Then there are formula grant programs administered by state and local governments—Weatherization Assistance Program, Energy Efficiency Community Block Grants Program, and State Energy Program. A list of ongoing Recovery Act funding opportunities can be found on our website on energy.gov/recovery/funding. You may be more familiar with grants.gov, where most Federal funding opportunities are available. At grants.gov, you can do an agency search for DOE and the opportunities are marked with “Recovery Act” in the title. One thing that we cannot emphasize enough is to register and begin the application process as soon as you can. The registration process can be lengthy, and make sure to read and follow all instructions carefully to avoid snags, errors or incomplete applications.
  • The instructions on the last slide apply to Federal funding opportunities. For those that are administered by State or local governments, go directly to that entity to apply.
  • Thank you for your time and attention today. I have the URL posted where you can get to virtually all of the information that I’ve gone through today, as well as the Department’s Recovery Act information hotline, which is staffed with highly trained and knowledgeable personnel to answer any questions you might still have.

Howard Marks, U.S. DOE Howard Marks, U.S. DOE Presentation Transcript

  • The American Recovery and Reinvestment Act: A Foundation for Our Energy Future Howard Marks Legislative Advisor Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Representative Linda Sanchez’s Energy Stimulus Workshop Paramount, California Thursday, July 30, 2009
  • The American Recovery and Reinvestment Act of 2009 (Recovery Act)
    • President Obama signed this unprecedented effort into law on February 17, 2009
      • Jumpstarts our economy, creates or saves millions of jobs, and puts a down payment on long-term challenges
      • Requires the hard work and collaboration of homeowners, scientists, local and state governments, small businesses, industry, and many others
  • The Department of Energy's Role Is Critical
    • Transform the way we use energy
    • Help reduce carbon emissions
    • Create entire new industries based on our nation's resources, ingenuity, and workers
    • Turn economic crisis into an opportunity to build a clean, secure, and prosperous energy future
  • Energy Efficiency and Renewable Energy (EERE) Recovery Act Funding EERE RD&D $2.5B Biomass $800M Geothermal $400M Information & Communications Tech. $50M EERE Discretionary Funding $1.25B Energy Efficiency Conservation Block Grants $3.2B State Energy Program $3.1B Weatherization Assistance $5.0B Energy Efficient Appliance and ENERGY STAR Rebates $300M Alternative Fuel Vehicle Grant Program $300M Advanced Battery Manufacturing Grants $2.0B Transportation Electrification Grants $400M EERE Total: $16.8B
  • EERE - Who Are We?
    • Power Generation
      • Wind/Water
      • Solar
      • Geothermal
    • Fuels & Vehicles
      • Vehicle Technologies
      • Biomass/Biofuels
      • Hydrogen
    • Energy Efficiency
      • Buildings Technologies
      • Industrial Technologies
      • Weatherization/Intergovernmental
      • Federal Energy Management
    We manage America’s investment in the research, development and deployment of DOE’s diverse energy efficiency and renewable energy applied science portfolio.
  • Total California Formula Funding under the Recovery Act $1.21 Billion
  • The State Energy Program - $3.1B Nationally $226M for California
    • Congress created the State Energy Program (SEP) to
      • Encompass renewable energy and energy efficiency technologies in all economic sectors
      • Funds states to carry out their own clean energy programs
    • States encouraged to choose activities with broad and lasting impacts on energy use within the state
      • Transform markets
      • Revolving loans, on-bill financing strategies, performance contracting
  • Weatherization Assistance Program - $5B Nationally $185M for California
    • Helps low-income households improve the efficiency of their homes, including air-conditioning
    • Funds are allocated to the states, which distribute funds to local agencies
    • Recovery Act Changes to Program
      • Eligible income level amended from 150% of poverty to 200%
      • Average funding per home was raised from $2,500 to $6,500
      • Training & Technical Assistance cap raised from 10% to 20%
    To apply for assistance, contact the Dept. of Community Services and Development (866) 675-6623 P.O. Box 1947 Sacramento, CA 95812-1947
  • Energy Efficiency and Conservation Block Grants Program - $3.2B Nationally, $351.6M for California
    • Formula grants primarily for energy efficiency and conservation
      • Community-wide; not just municipal buildings and facilities
      • Do not have to fund capital projects, can fund programs
      • Prioritize activities that pay dividends year after year
    • Formula grants ($2.8B)
      • For states, cities, counties, and tribes
    • Competitive grants ($456M)
      • Details will be available in a forthcoming Funding Opportunity Announcement
    Application Deadline Extended to August 10, 2009
  • Secretary Chu on the Block Grants
    • “ The Block Grants are a major investment in energy solutions that will strengthen America’s economy and create jobs at the local level. The funding will be used for the cheapest, cleanest and most reliable energy technologies we have – energy efficiency and conservation – which can be deployed immediately.  The grants also empower local communities to make strategic investments to meet the nation’s long term clean energy and climate goals.”
    • - Secretary Steve Chu
  • EECBG Allocations
  • EECBG Allocations Continued
  • Eligible Uses of EECBG Funds
    • Strategy Development
    • Building Energy Audits & Retrofits
    • Financial Incentive Programs
    • Energy Efficiency and Conservation Programs for Buildings and Facilities
    • Development and Implementation of Transportation Programs
    • Building Codes and Enforcement
    • Energy Distribution Technologies for EE including CHP & district heating and cooling
  • Eligible Uses of EECBG Funds
    • Material Conservation Programs including source reduction, recycling, and recycled content procurement programs
    • Reduction and Capture of Methane and Greenhouse Gases
    • Traffic Signals and Street Lighting
    • Renewable Energy Technologies on Government Buildings
    • Any Other Appropriate Activity
  • Limitations on the Use of EECBG Funds
    • States
      • Sub grant at least 60% to ineligible towns and counties
      • If your town was not allocated formula funds, contact the Maryland Energy Administration to inquire about obtaining funds.
    • Local Governments and Tribes
      • Cap on administrative costs, excluding reporting: 10% or $75,000, whichever is greater
      • Cap on revolving loan funds: 20% or $250,000, whichever is greater
      • Cap on sub grants to non governmental organizations for assistance in implementation of strategy: 20% or $250,000, whichever is greater
  • Reporting and Measuring Success
    • Outcome metrics:
      • Jobs created and/or retained
      • Energy saved
      • Renewable energy capacity installed
      • Green House Gas emissions reduced
      • Funds leveraged
    • Web-based reporting system under development
    • Individual output metrics based on activity type
    • Additional guidance will be released
  • Staged Disbursement of Funds The balance of funding will be obligated after one or more progress reviews in which the recipient must demonstrate that it has obligated funds appropriately, complied with reporting requirements, and created jobs. Applicants may receive up to $250K at time of award for development of the EECS and approved activities or 50% of the total allocation if an acceptable EECS has been submitted with the application and has been approved by DOE. Over $2 million
    • If the EECS is not submitted with the application, it’s required within 120 days of the effective date of the award
    • The balance of the allocation will be obligated upon DOE’s approval of the recipient’s EECS.
    Applicants may receive up to $250K for development of the EECS and approved activities. $250K to $2 million No Energy Efficiency and Conservation Strategy (EECS) is required prior to award, but EECS must be submitted within 120 days of the effective date of the award. 100% of allocation will be disbursed at time of award. $0 to $250K Requirements Amount Obligated Award Range
  • Recovery Act Appliance Rebate Program - $300M
    • Offers funding for rebate programs in 50 states
      • States must apply for the money
    • Will increase consumer awareness of energy efficient choices to save energy and money
  • Clean Cities - $300M
    • Clean Cities Alternative Fueled Vehicles Pilot Grant Program
    • Round 1 is now closed, but there may be a Round 2 in September
    • Clean Cities Coalitions in SoCal: Los Angeles, Long Beach, Antelope Valley (Lancaster), San Diego Region, Southern California Association of Governments (SCAG)
  • Vehicle Technologies - $110M
    • Investment of up to $240M for the development of high efficiency commercial and passenger vehicles
    • Funding includes approximately $110M from the Recovery Act, combined with DOE annual appropriations
    • Funding solicitations are divided into two areas:
      • System level technology development, integration, and demonstration for efficient Class 8 trucks
      • Advanced technology powertrains for light-duty vehicles
  • Industrial Technologies - $256M
    • $156M for Combined Heat and Power, District Energy Systems, Waste Energy Recovery Systems, and Efficient Industrial Equipment
      • Proven near-term energy options to enhance energy efficiency and promote economic growth
    • $50M for Improved Energy Efficiency for Information and Communication Technology
    • $50M for Advanced Materials in Support of Advanced Clean Energy Technologies and Energy-Intensive Processes
      • RD&D for advanced industrial materials that can be used in a variety of applications
    • $480M Solicitation for Integrated Pilot- and Demonstration-Scale Biorefineries
      • 10-20 awards for refineries to be operational in the next 3 years
    • $177M for Commercial-Scale Biorefinery Projects
    • $110M for Fundamental Research in Key Program Areas
    • $20M for Ethanol Research
      • Optimize flex fuel vehicles operating on high octane E85 fuel
      • Evaluate the impact of higher ethanol blends in conventional vehicles
      • Upgrade fueling infrastructure to be compatible with fuels up to E85
    • Integrated Biorefinery Research Facility at National Renewable Energy Laboratory
    Biomass Solicitations - $800M
    • $100M for Advanced Building Systems Research
    • $70M for Residential Buildings Development and Deployment
    • $53.5M for Commercial Buildings Initiative
    • $72.5M for Buildings and Appliance Market Transformation
    • $50M for Solid State Lighting R&D
    Energy Efficient Buildings and Components - $346M under the Recovery Act
  • Wind Energy Projects - $118M
    • $45M for Wind Turbine Drivetrain R&D and Testing
    • $14M for Technology Development
    • $24M for Wind Power R&D
  • Geothermal Technologies - $400M
    • $140M for Geothermal Demonstration Projects
      • Demonstrations of cutting-edge technologies to advance various approaches to accessing geothermal resources
    • $80M for Enhanced Geothermal Systems R&D
    • $100M for Innovative Exploration Techniques
      • Projects that include exploration, siting, drilling, and characterization of a series of exploration wells utilizing innovative techniques
    • $30M for National Geothermal Data System, Resource Assessment, and Classification System
    • $50M for Geothermal Heat Pumps
      • Innovative technology demonstrations, life cycle cost tools, and national certification and accreditation
  • Solar Energy Technologies - $176.5M
    • $51.5M for Photovoltaic (PV) Technology Development
    • $40.5M for Solar Energy Deployment
    • $25.6M for Concentrating Solar Power (CSP) R&D
    • To modernize the hydropower in the U.S., increase efficiency, and reduce environmental impact
    • Funding opportunity open to existing non-federal hydroelectric facilities
    • Projects will be selected in two areas: large-scale (>50MW) and small-scale (<50MW)
    Hydropower Upgrades - $32M
  • Smart Grid Funding (Office of Electricity)
    • Essential to expanding renewable energy and efficiency
    • Smart grid: an automated electric grid designed to be flexible and maximize reliability
    • The Vice President outlined plans to distribute more than $4.5B for smart grid technologies
    “By investing in updating the grid now, we will lower utility bills for American families and businesses, lessen our dependence on foreign oil and create good jobs that will drive our economic recovery – a strong return on our investment.” - Vice President Biden
  • Smart Grid Funding - $4.5B total
    • Run by Office of Electricity
    • $3.3B for Smart Grid Investment Grant Program – August 6
    • $615M for Smart Grid Demonstration Projects - August 26
    • $100M for workforce training
    • $80M for conducting a resource assessment and analysis of future demand and transmission
  • Tracking Our Progress
    • The American people want to know who is receiving the money, and know they are getting value for their tax dollars
    • Everything we do will be transparent
    • Visit recovery.gov or energy.gov/recovery/ to stay informed
  • How to Apply for a Grant or Loan Guarantee from DOE
    • Funding opportunity announcement tracking for:
      • All types— energy.gov/recovery/funding.htm
      • Grants— grants.gov
      • Contracts— fbo.gov
      • Loan guarantees— energy.gov/recovery/funding.htm
    • For first-time applicants, register before submitting applications
      • Register early to be ready when opportunities are announced (process can take 3 days to 2 weeks)
      • Read registration instructions carefully
  • Applying for Grants Administered by California or Local Governments
    • Apply directly to state energy office or local government entity
    • For Recovery Act documents, go to the California Energy Commission website: http://www.energy.ca.gov
    • State Energy Office Director
    • Claudia Chandler, Chief Deputy Director
    • (916) 654-4989
    • [email_address]
    • State Energy Program Manager
    • John Butler, Grants and Loans Office Manager
    • (916) 654-4204
    • [email_address]
    • Thank you!
    • For more information:
    • Department of Energy Recovery Act Site
    • http:// www.energy.gov /recovery
    • EECBG Program Page
    • http:// www.eecbg.energy.gov /
    • EECBG Application Portal
    • https:// www.fedconnect.net
    • Office of Weatherization and Intergovernmental Programs
    • http:// www.eere.energy.gov/wip /
    • 1-888-DOE-RCVY (1-888-363-7289)
  • Open Funding Opportunity Announcements