With new funds in the pipeline and a new administration at the helm, communities nationwide are looking for ways to align their strategies for development with the tone and tenor of Washington. In order to help counties better understand the new mechanisms for addressing their energy needs, Brian spoke to NACo’s Energy Subcommittee about the opportunities for clean energy activities in the 2009 American Recover and Reinvestment Act (ARRA). He outlined the main recipients of ARRA funding for energy efficiency (which include state energy offices and local governments), as well as how those funds will be allocated, how interested organizations should apply for those funds, and what activities are eligible for funding.

1. The Obama Effect: Driving
Energy Efficiency and Economic
Recovery
National Association of Counties
2009 Legislative Conference
March 7, 2009
Brian Castelli
Executive Vice President, Programs & Development

2. Presentation Outline
 What is the Alliance to Save Energy?
 New Administration, New Energy Policy
 2009 Stimulus Package – EE related $
 On the Horizon: Energy & Climate?

3. What is the
Alliance to Save Energy?
Mission:
To promote energy efficiency
 Policy
Leaders
worldwide to achieve a
healthier economy, a cleaner
environment, and greater
energy security.
The Alliance is… Environ-
Business The Alliance to
Staffed by 50+ professionals
 mental
Leaders Save Energy
Groups
31 years of experience in

policy, research, education,
communications, technology
deployment and market
transformation
Academia

4. Alliance Directors: Bi-Partisan
Elected Officials and Industry Leaders
Guided by a 37-Member, elected Board of Directors

Leaders of environmental, consumer, and trade

associations; state and local policy makers; corporate
executives
Senator Mark Jim Rogers, CEO Bi-partisan, bi-cameral Honorary Vice Chairs
Pryor (D-Ark.) Duke Energy

5. Forging Alliances: Business,
Government & Public Interests
Sponsorship and participation of more than 150 organizations

Involvement by businesses in all economic sectors

Headquartered in Washington, D.C. with operations in several US

states, Eastern Europe, South Africa, Mexico, and India

6. Brief Post-Mortem on 2008
Energy Independence & Security Act (EISA),

P. L. 110-140; most sweeping energy bill enacted
in over 30 years (Note: some provisions will now
govern stimulus spending)
Energy efficiency tax incentives were extended as

part of the Troubled Assets Relief Program
(quot;TARPquot;) P.L. 110-343 -- October, 2008
Energy legislation adopted by House; Senate

“Gang of Ten” energy package developed

7. Inventing our Energy Future
While Re-Building the Economy
The imperative:

future of our economy and national security are
“…the
inextricably linked to one challenge: energy.”
The path forward:

“To control our own destiny, America must
develop new forms of energy and new ways
of using it. This is not a challenge for
government alone….It is a challenge for all of
us.”
 President Barack Obama, December 15, 2008

8. President Obama:
Energy Efficiency Advocate
– Reduce electricity use 15% by 2020
– Net-zero energy buildings by 2030
– Overhaul federal appliance
standards
– By 2014, reduce energy use in new
federal buildings 45%; 25% in
existing federal buildings
– Flip incentives for utilities
– Invest in a “smart grid”
– Weatherize 1 million homes/year
– Investment incentives for “livable
cities”

9. “Making Good” on Promises:
Early Action (Jan 09)
Directs DOT to establish higher fuel economy

standards for vehicles by model year 2011
Directs EPA to reconsider the bid by California and

13 other states to set tailpipe carbon dioxide
emission standards requiring greater fuel economy.
Confirms intent to

- weatherize 2 million homes over the next two years;
- make significant energy efficiency upgrades to 75 percent
of federal buildings (savings of $2 billion in avoided energy
costs);
- double the country’s renewable energy resource base; and
- create nearly 500,000 new “green jobs.”

10. Building a Green Economy
Showed early commitment to large

green energy component in the
economic recovery bill
Budget assumes revenues from an

economy-wide cap-and-trade
program to reduce greenhouse
gas emissions, based on a carbon
cap of 83% below 2005 levels in
2050
- The climate program would generate
nearly $650 billion between 2012 and
2019
- House hopes to consider a joint
climate & energy bill by Memorial Day

11. Stimulus Parameters…

12. ~$75 Billion Potential for EE

13. American Recovery & Reinvestment
Act of 2009 – $787 Billion Total
 ~$20 billion primarily for energy efficiency
 $3.1 State Energy Program (SEP)
 $3.2 EE Conservation Block Grants
 $4.5 Green Federal Buildings
 $0.3 ENERGY STAR appliance rebate
 $5.0 Weatherization (WAP)
 $1.25 undesignated funding for RDD&D
In addition: transit, smart grid, ARPA-E, utility

infrastructure, school/university facilities, workforce,
tax incentives, bonding authority, loan guarantees

14. ARRA – the main recipients
State Energy Offices

- SEP funding formula
- Guidance to come from DOE – Soon!
Local Governments (Counties, Cities ), Indian Tribes, US

Territories, States and consortia of above
- $2.8 Billion to be distributed per EISA allocation guidance
- $ 400 Million to be competed
Local Weatherization agencies

General Services Administration (GSA)

DOD, DOL and EERE


15. Allocation of EE&CBG $2.8 B
68% to Large Cities and Counties

>35,000 population > 200,000 population
OR in Small States one of the 10 most populous Cities or Counties
28% to States

- Of which 60% to Cities and Counties with
< 35,000 population < 200,000 population
2% in direct formula grants from DOE to Indian

tribes
2% in competitive grants from DOE to Cities,

counties and Indian tribes not eligible for direct
formula grants from DOE, and consortia of those
entities

16. Application for the
EE&CBG $2.8 B
FedConnect, will be the mechanism for applying for the

EECBG Program
https://www.fedconnect.net/FedConnect/PublicPages/FedC
onnect_Ready_Set_Go.pdf
- Step 1: Request a DUNS Number at
http://fedgov.dnb.com/webform/displayHomePage.do
- Step 2: Register with the Central Contractor Registry (CCR) at
http://www.ccr.gov/.
- Step 3: E-Business Point of Contact must register in FedConnect at
https://www.fedconnect.net/FedConnect/.
REGISTER NOW!!!
 Process may take up to 21 days.

17. What Activities are Eligible
for the EE&CBG $2.8 B
13 Activities are eligible – Key criteria will be

based on maximum impact in short-term for
jobs to stimulate the economy WHILE laying
a foundation for long-term sustainable
energy future
 DOE will provide more guidance on
“categorical exclusions” to NEPA for some of
the 13 programs.

18. What Activities are Eligible
for the EE&CBG $2.8 B
Residential and Commercial Building

Energy Audits
 Financial Incentive Programs for EE
 Energy Efficiency Retrofits
 Energy Efficiency and Conservation
Programs for Buildings and Facilities
 Development and Implementation of
Transportation Programs
 Building Codes and Inspections

19. What Activities are Eligible
for the EE&CBG $2.8 B
Energy Distribution Technologies

Material Conservation Programs

Reduction and Capture of Methane and

Greenhouse Gases
Traffic Signals and Street Lighting

Renewable Energy Technologies on

Government Buildings
Development of an Energy Efficiency and

Conservation Strategy
Any Other Appropriate Activity


20. ARRA – the delivery mechanisms
DOE (both administrator and recipient)

- Has created a “special organization” to disperse
 MattRogers (of McKinsey Consulting) is leading this
advisory team, which reports to Secretary Chu
- EERE
 EERE receives $3.5 B, of which $2.25 B earmarked
for renewable energy and some EE
 Gil Sperling is organizing DOE’s stimulus efforts for
SEP and WAP from the Office of the Weatherization
and Intergovernmental Program (OWIP)

21. ARRA – the confusion
“plan then do” – obviously not happening

 “Shovel ready” - projects vs. programs
 Funds could begin flowing April, 2009
 Funds to be expended in 18-24 months
 Test case for future climate legislation
 How do we measure success?

22. Stimulus Opportunities
The State Energy Program

- In FY 2008 received $44 million
- Stimulus provided $3.1 billion
- The National Association of State Energy Officials
has a listing of energy programs that receive
funding through SEP, from Colorado’s Rebuild
Colorado program to Wyoming’s Energy
Conservation Improvement program, both of
which utilize performance contracting
- Browse programs state-by-state at
http://www.naseo.org/projects/sep/updates/index.
html

23. Stimulus + Policy
State Energy Program funding requires

governor to state in writing that the State will:
- Rate reform: Align utility financial incentives with
energy efficiency, with cost recovery and
earnings opportunity
- Codes: Implement most recent model building
energy codes and plan for compliance
23

24. Stimulus Opportunities
The Weatherization Assistance Program

- In FY 2008 received about $500 million – two sources
- Stimulus provided $5 billion
The WAP Technical Assistance Center

(www.waptac.org) provides a page of “Ramp Up Tools” to
help the weatherization network respond to the funding influx
Other resources:

- National Association for State Community Services
Programs (http://www.nascsp.org/)
- Weatherization Plus & Leveraging Resources:
http://www.opportunitystudies.org/weatherization-plus/

25. Stimulus Opportunities
Federal-Level Resources

- General Services Administration received
$4.5 billion to convert federal facilities into
“High-Performance Green Buildings”
- GSA’s Public Buildings Service houses the
new Office of High-Performance Green
Buildings
- GSA Director of Expert Services Kevin
Kampschroer will lead this effort
- www.Recovery.gov and
www.GSA.gov/sustainabledesign

26. General Services Administration
funds: Alliance Recommends…
Federal Energy
Management Program
Projects that:
•Create the greatest impact through the use of
From GSA funds energy and water efficiency and conservation
$3
for energy and renewable energy across the federal
efficiency retrofits billion government;
•Are leveraged with private sector funds; and
in federal buildings,
•Are comprehensive and used for the
take…
construction, repair and alteration of Federal
buildings in compliance with Section 432 of EISA
(42 U.S.C. Section 8253) (f) (1) through (f) (7).

27. FY09 Federal Energy Efficiency
Programs Funding (in millions of dollars)
Program FY08 FY09 FY09 FY09 FY09 Change Change from 09
Approp. Request House Senate Omnibus from 08 Request
Request Request Approp.
Building Tech 108.999 123.765 168 176.481 140 28% 13%
Commercial 11.891 13 33 40
Buildings Integration
Industrial Tech 64.409 62.119 100 65.119 90 40% 45%
Federal Energy 19.818 22 30 22 22 11% 0%
Management
State Energy 44.095 50 50 50 50 13% 0%
Program
Weatherization 227.221 0 250 201.181 200 -12%
Assistance
State & Local Block 295 50
Grants
Total Above EERE 727.031 478.970 1378 857.781 775.238 7% 62%
Programs
Energy Star EPA 48.236 44.221 55 55 4% 13%

28. “New Funding”:
Commercial Building Initiative
Goals:

- 2030: New construction Net-Zero
- 2050: Entire stock Net-Zero
Broad government/industry consortium

Comprehensive approach (R&D deployment)

Coordinate (initiate) national and local actions

- Measure, benchmark, disclose energy performance
- R&D for critical technologies and systems
- Demonstrate scalable, replicable system solutions
- Transform market:
education/training, finance, appraisal, incentives, codes, buyer
demand-pull

29. On the Horizon…
…More Energy
Efficiency?

30. Energy and/or Climate
Legislation in the 111th
Senate to consider energy bill in March/April;

House may introduce combined energy/climate bill

- Waxman’s goal is legislation by Memorial Day
- Interest in National RPS/EERS (Markey has
introduced bills)
Obama FY 2010 anticipates “Cap & Trade”

proceeds beginning in 2012

31. Alliance “Complementary” Policy
Recommendations:
- Advanced building energy codes
- Energy Efficiency Resource Standard
- Vehicle Feebate
- Appliance Standards
- Building Labeling Programs and/or Requirements

32. Alliance Climate Policy
Recommendations
Alliance, together with other organizations, has

developed recommendations for the next climate
bill and is briefing Congressional staff
We are looking at evaluation, measurement and

verification; third-party programs; how much
should be spent on R&D
Despite economic woes, expectation that

Congress will enact/President will sign climate
legislation this year or next

33. Climate Legislation Can Create
Funding for RE & EE
Estimated Allowance Allocation under Boxer Substitute
Amendment to Climate Security Act (2008)
$350
$300
$19
$19
$19
Allowance Value Allocated
$18 $45 To Renewables
$250 $44
$44
$16
$41
Bilion Dollars
$15 $38
$200
$34
$13
$29
$11
Allowance Value Allocated
$150 $25 To Energy Efficiency
$100
$50 Other Allowance Value
$0
2015 2020 2025 2030 2035 2040 2045 2050
Year

34. The Future is Ours to Invent!
In the Short Term:

- The U.S. Economy is Re-built on Development
and Deployment of Clean Energy and
Technologies
- Energy Efficiency is the “First Tool” in the Arsenal
for Fighting Climate Change
In the Longer Term:

- U.S. Becomes the Most Energy-Efficient
Economy in the World

35. Planning Committee:
Organized by an International Steering Committee
Marc Bitzer Lena Ek Andreas Schierenbeck Nobuo Tanaka Jean-Pascal Tricoire Claude Turmes
EVP, Whirlpool Corp. CEO, Building Executive Director, President and MEP (Luxembourg)
MEP (Sweden)
President, Whirlpool Europe Automation, Siemens International Energy Agency CEO, Schneider Electric
Event Format:
Exposition Hall: Business, Government and Other Exhibits from around the world
4 Plenary Sessions: Top business and environmental leaders engage with all conference attendees
24 Executive Dialogue Sessions: 90-minute concurrent sessions organized into 4 end use tracks featuring leading global voices
selected by an international committee of experts and peers
Networking Events: Many exciting events where business and pleasure are mixed
Sponsors:

36. Thank you!
For More Information….
Alliance to Save Energy
1850 M Street, NW
Washington, D.C. 20036
www.ase.org
202.857.0666