ENERGY EFFICIENCY &
CONSERVATION BLOCK GRANTS
Written as a Public Service for Montana Cities, Counties, & Tribes
© 4/10/2009 by Russell L. Doty, CEO/General Council
New World WindPower, LLC
406-696-2842
1) The 2009 Federal Recovery Act[1] makes available in 2009, $3.2 billion in Energy Efficiency and Conservation Block Grants for US local & tribal governments. Montana’s share based on population is $13,971,000.[2]
2) Those grants may be used for energy conservation authorized under subtitle E of title V of the Energy Independence and Security Act of 2007. See §544, which is printed below. For example, fundable conservation measures include the retrofitting of existing street lights, or government-owned parking facility or lot lights. Use of LED street lights can cut that part of your electricity budget by 50-60% and give more uniform lighting patterns that are well accepted by the public. [3] The grants for LED lighting would increase energy efficiency for an appropriate sector (street lighting) and meet the other purposes for which the grants are to be made pursuant to 42 USC 17152(b)(1), (2), & (3).
3) When used for street lights, the Block Grants can only be used for retrofits. However, local governments can accumulate the savings from lower energy bills into an escrow account or revolving loan fund to be leveraged. For example, what would have been paid to waste energy but for the new LED lights or other energy efficiency improvements can be used in purchasing LED street lights in city-owned portions of new developments or to incentivize LED lighting in privately-owned new or old lighting districts by bringing the cost of LED luminaires down or to fund additional energy conservation.[4]
4) If the government owns the street lights or an agreement can be worked out with the utilities so the government will own the lights, financing of the transition to LED street lights can be achieved with Conservation Block Grants or (26 U.S.C.A. § 54D) Qualified Energy Conservation Bonds. These Grants and Bonds make rapid transition to the LED street lighting technology within the financial reach of every local government unit in Montana. Hayward, CA is proposing to use stimulus funds to replace street lights with LEDs citywide. $8,000,000 - 150 jobs.
5) Eligibility pursuant to 42 USC 17151:
a) The following Montana cities, counties and all Tribes are eligible to apply for the “direct formula” the $2.8 billion portion of Block Grants:
|
Montana Total |
$13,971,000 |
|
Montana State Energy
Office after subtracting 60% sub-grant minimum |
$3,837,400 |
|
Montana State Energy Office minimum
sub-grant funding for smaller cities |
$5,756,100 |
|
Large
Cities: |
|
|
Anaconda-Deer-Lodge-City |
$50,000 |
|
Billings |
$1,003,000 |
|
Bozeman |
$175,500 |
|
Butte-Silver-Bow-City |
$138,700 |
|
Great-Falls |
$570,100 |
|
Havre |
$50,000 |
|
Helena |
$138,600 |
|
Kalispell |
$96,700 |
|
Miles-City |
$50,000 |
|
Missoula |
$680,400 |
|
Large Counties:[5] |
|
|
Cascade |
$94,400 |
|
Flathead-County |
$274,200 |
|
Gallatin-County |
$198,700 |
|
Lake-County |
$119,500 |
|
Lewis-&-Clark-County |
$120,400 |
|
Lincoln-County |
$80,000 |
|
Missoula-County |
$151,000 |
|
Park-County |
$67,100 |
|
Ravalli-County |
$167,400 |
|
Yellowstone-County |
$151,800 |
|
Tribes: |
|
|
Blackfeet
Tribe |
$335,900 |
|
Confederated
Salish & Kootenai Tribes of the Flathead Reservation |
$283,400 |
|
Assiniboine
and Sioux Tribes of the Fort Peck Indian Reservation |
$262,500 |
|
Crow
Tribe |
$261,200 |
|
Northern
Cheyenne Tribe |
$177,000 |
|
Chippewa-Cree
Indians of the Rocky Boy's Reservation |
$137,500 |
|
Fort
Belknap Indian Community |
$122,000 |
b) The
state of Montana will apply for Block grants on behalf of cities, counties, or
tribes that are not large enough for “direct formula” funding. As
row 3 of the table shows, a minimum of $5,756,100 is available for that.
c) All
cities, counties and tribes, regardless of size, that are not eligible for
direct formula grants may apply for the $400 million competitive portion of the block grants in the 2009 HR.1, appropriation.
How that works will be published in a DOE “FOA” shortly. The most populous
(formula) cities and counties apparently will not be eligible to compete for
these non-formula grants. However, a consortium of lighting districts within
those cities or counties may be eligible. That possibility needs to be
explored.
6) Funds must be committed within 18 months of
the effective date of the award or risk having the award canceled. Projects
must be completed within 3 years of the award. The law envisions that grant
applicants will cooperate with contiguous units of government.
7) Application Due Dates:
For State Applicants[6]Only: May 26, 2009 at 8:00:00 PM Eastern Time
For formula grant (large) Units of Local Government and Tribal Applicants Only: June 25, 2009 at 8:00:00 PM Eastern Time.
For non-formula grant (small) Units of Local Government: Louise Moore indicates this deadline will be clarified when the state submits its plan for allocating money to these entities. Smaller units of local government will know at that time when they have to get their requests in to the state in order to request funding from the State sub-grant.
Applicants are encouraged to submit their applications well before
these due dates.
8)
Counties, cities and tribes may not use more
than 20 percent or $250,000, whichever is greater, for the
provision of subgrants to other governmental units (like street lighting
districts) or non-governmental organizations (qualified nonprofits) for the
purpose of assisting in the implementation of the energy efficiency and
conservation strategy of the applicant (EISA Sect 545 (b)(3)(C))[7]
9)
Other
requirements or limits: Pursuant to § 410 of the stimulus bill the Governor must to certify that the state
is moving forward on the conservation and renewable energy measures indicated
in the law if Montana local governments are to qualify for the block grants. With one exception the needed
procedures for that certification to be accomplished are in place, as you can
see from the discussion at the bottom of the Block Grant law at page 14,
below. In addition, pursuant to § 1605 projects must use US made steel and
manufactured goods (unless a waiver is granted) and pursuant to § 1606, meet
prevailing wage standards. Under § 1604, funds may not be used for a casino or
other gambling establishment, aquarium, zoo, golf course, or swimming pool.
1)
Suggestion: The
grants are only available to government for retrofits (or in certain instances
to qualified nonprofits). Therefore, government, not private individuals, will
have to own the LED luminaires, and the money must be used to replace existing
outmoded, non-energy efficient technology. Rather than have each individual
city apply for these grants, it would make sense for the League of Cities and
Association of Counties and the State of Montana to put together joint
applications. That would insure bulk pricing and quality in the purchasing.
While some street and area lights are ready for prime time, others are not. So
it will be important to separate the wheat from the chaff.
2)
All entities
receiving direct formula grants from the DOE are required to submit a proposed
energy conservation strategy for approval. $250,000 of the grants may be
used to develop the strategy. The strategy must be completed within 120 days of
the effective date of the award. Entities would do well to began developing
such a strategy to include measurements on jobs created, energy saved, and CO2
emissions avoided.
3)
Full DOE Formula Grant Funding Announcement:
On March 26, 2009, DOE issued the Financial Assistance Funding Opportunity Announcement for the Recovery Act – Energy Efficiency and Conservation Block Grants – Formula Grants, Funding Opportunity Number: FA Opp Number .
The full announcement can be reached at https://www.fedconnect.net/FedConnect/PublicPages/PublicSearch/Public_Opportunities.aspx Look for and click on the Recovery Act - EECBG Program issued 3/26/09. Follow the directions in the “What do I do now section.” This might time out on you. So you will either have to go through the trouble to get back in or have printed the Notice.
So your grant application receives priority, you may also want to conform your application to the requirements of §410(a)(3) of the Recovery Act printed below at p. 13.
Click on the send me change notification emails to stay current on this funding opportunity at: http://www07.grants.gov/search/search.do;jsessionid=4tyXJMCQlWGGQ12ZtxrF61pG4fyTyBk7PvLDN7yRq9GHrvnWChqV!492643356?mode=VIEWREVISIONS&revNum=0 The only reason to use this last link is to get on the update list. The how to apply and full announcement links at the top of this later link were not working on March 26, so you will encounter less frustration using the fed connect link. Also do not be fooled by the deadline date in the summary document in the grants link. Use the dates in the fed connect announcement link above and for smaller (non-direct grant) cities and counties, the deadlines to be announced by the State.
a) The state recovery web sites will post more information on block grants soon. http://www.recovery.mt.gov/default.mcpx and
http://deq.mt.gov/Recovery/index.asp
b) Another site for info on these grants is DOE:
c) Information on LED street and area lighting can be reached from the left menu at www.newworldwindpower.com
YOU MAY ALSO want to check the following sites (but some of the info they contained was not as up to date as this memo as of 4/3/09):
d) The National Association of State Energy Officials has a nice (up to date) slide summary of what is in the Recovery Act for energy http://www.naseo.org/news/arra/Energy_Efficiency_Opportunities_in_ARRA.pdf
And a best practices guide at: http://www.naseo.org/members/programs/default.aspx
e) Recovery Act opportunities for public power (co-op) http://cleanefficientenergy.org/files/CEEP_Stimulus_Summary_FINAL.pdf
f) US Mayors’ info on these grants (is based on law prior to the Recovery Act so is out of date in terms of the graphic on how funds will be distributed:
http://www.usmayors.org/climateprotection/
g) The ICLE site: http://www.icleiusa.org/action-center/financing-staffing/doe-energy-efficiency-and-conservation-block-grants
h) Post Carbon Cities Document at http://postcarboncities.net/node/2343
5)
Conservation Block Grant Law: These Block Grants were created by the Energy Independence and Security Act of
2007 found (without its amendments) at:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ140.110 For your convenience, that law is also printed below with its 2009 amendments:
Subtitle E--Energy Efficiency and Conservation Block GrantsSEC. 541. <<NOTE: 42 USC 17151.>> DEFINITIONS.
In this subtitle: (1) Eligible entity.--The term ``eligible entity'' means-- (A) a State; (B) an eligible unit of local government; and (C) an Indian tribe. (2) Eligible unit of local government.--The term ``eligible unit of local government'' means-- (A) an eligible unit of local government-alternative 1; and (B) an eligible unit of local government-alternative 2. (3)(A) Eligible unit of local government-alternative 1.--The term ``eligible unit of local government-alternative 1'' means-- (i) a city with a population-- (I) of at least 35,000; or (II) that causes the city to be 1 of the 10 highest-populated cities of the State in the city is located; and (ii) a county with a population-- (I) of at least 200,000; or (II) that causes the county to be 1 of the 10 highest-populated counties of the State in which the county is located. (B) Eligible unit of local government-alternative 2.--The term ``eligible unit of local government-alternative 2'' means-- (i) a city with a population of at least 50,000; or (ii) a county with a population of at least 200,000. (4) Indian tribe.--The term ``Indian tribe'' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). (5) Program.--The term ``program'' means the Energy Efficiency and Conservation Block Grant Program established under section 542(a). (6) State.--The term ``State'' means-- (A) a State; [[Page 121 STAT. 1668]] (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; and (D) any other territory or possession of the United States. SEC. 542. <<NOTE: 42 USC 17152.>> ENERGY EFFICIENCY AND CONSERVATION
BLOCK GRANT PROGRAM. (a) Establishment.--The Secretary [of Energy] shall establish a program, to be known as the ``Energy Efficiency and Conservation Block Grant Program'', under which the Secretary shall provide grants to eligible entities in accordance with this subtitle. (b) Purpose.--The purpose of the program shall be to assist eligible entities in implementing strategies-- (1) to reduce fossil fuel emissions created as a result of activities within the jurisdictions of eligible entities in a manner that-- (A) is environmentally sustainable; and (B) to the maximum extent practicable, maximizes benefits for local and regional communities; (2) to reduce the total energy use of the eligible entities; and (3) to improve energy efficiency in-- (A) the transportation sector; (B) the building sector; and (C) other appropriate sectors. SEC. 543. <<NOTE: 42 USC 17153.>> ALLOCATION OF FUNDS.
(a) In General.--Of amounts made available to provide grants under this subtitle for each fiscal year, the Secretary shall allocate-- (1) 68 percent to eligible units of local government in accordance with subsection (b); (2) 28 percent to States in accordance with subsection (c); (3) 2 percent to Indian tribes in accordance with subsection (d); and (4) 2 percent for competitive grants under section 546. (b) Eligible Units of Local Government.--Of amounts available for distribution to eligible units of local government under subsection (a)(1), the Secretary shall provide grants to eligible units of local government under this section based on a formula established by the Secretary according to-- (1) the populations served by the eligible units of local government, according to the latest available decennial census; and (2) the daytime populations of the eligible units of local government and other similar factors (such as square footage of commercial, office, and industrial space), as determined by the Secretary. (c) States.--Of amounts available for distribution to States under subsection (a)(2), the Secretary shall provide-- (1) not less than 1.25 percent to each State; and (2) the remainder among the States, based on a formula to be established by the Secretary that takes into account-- (A) the population of each State; and (B) any other criteria that the Secretary determines to be appropriate. (d) Indian Tribes.--Of amounts available for distribution to Indian tribes under subsection (a)(3), the Secretary shall establish [[Page 121 STAT. 1669]] a formula for allocation of the amounts to Indian tribes, taking into account any factors that the Secretary determines to be appropriate. (e) Publication of <<NOTE: Deadline. Federal Register, publication.>> Allocation Formulas.--Not later than 90 days before the beginning of each fiscal year for which grants are provided under this subtitle, the Secretary shall publish in the Federal Register the formulas for allocation established under this section. (f) State and <<NOTE: Establishment.>> Local Advisory Committee.--The Secretary shall establish a State and local advisory committee to advise the Secretary regarding administration, implementation, and evaluation of the program. SEC. 544. <<NOTE: 42 USC 17154.>> USE OF FUNDS.
An eligible entity may use a grant received under this subtitle to carry out activities to achieve the purposes of the program, including-- (1) development and implementation of an energy efficiency and conservation strategy under section 545(b); (2) retaining technical consultant services to assist the eligible entity in the development of such a strategy, including-- (A) formulation of energy efficiency, energy conservation, and energy usage goals; (B) identification of strategies to achieve those goals-- (i) through efforts to increase energy efficiency and reduce energy consumption; and (ii) by encouraging behavioral changes among the population served by the eligible entity; (C) development of methods to measure progress in achieving the goals; (D) development and publication of annual reports to the population served by the eligible entity describing-- (i) the strategies and goals; and (ii) the progress made in achieving the strategies and goals during the preceding calendar year; and (E) other services to assist in the implementation of the energy efficiency and conservation strategy; (3) conducting residential and commercial building energy audits; (4) establishment of financial incentive programs for energy efficiency improvements; (5) the provision of grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits; (6) development and implementation of energy efficiency and conservation programs for buildings and facilities within the jurisdiction of the eligible entity, including-- (A) design and operation of the programs; (B) identifying the most effective methods for achieving maximum participation and efficiency rates; (C) public education; (D) measurement and verification protocols; and (E) identification of energy efficient technologies; (7) development and implementation of programs to conserve energy used in transportation, including-- (A) use of flex time by employers; [[Page 121 STAT. 1670]] (B) satellite work centers; (C) development and promotion of zoning guidelines or requirements that promote energy efficient development; (D) development of infrastructure, such as bike lanes and pathways and pedestrian walkways; (E) synchronization of traffic signals; and (F) other measures that increase energy efficiency and decrease energy consumption; (8) development and implementation of building codes and inspection services to promote building energy efficiency; (9) application and implementation of energy distribution technologies that significantly increase energy efficiency, including-- (A) distributed resources; and (B) district heating and cooling systems; (10) activities to increase participation and efficiency rates for material conservation programs, including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency; (11) the purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar sources; (12) replacement of traffic signals and street lighting with energy efficient lighting technologies, including-- (A) light emitting diodes; and (B) any other technology of equal or greater energy efficiency; (13) development, implementation, and installation on or in any government building of the eligible entity of onsite renewable energy technology that generates electricity from renewable resources, including-- (A) solar energy; (B) wind energy; (C) fuel cells; and (D) biomass; and (14) any other appropriate activity, as determined by the Secretary, in consultation with-- (A) the Administrator of the Environmental Protection Agency; (B) the Secretary of Transportation; and (C) the Secretary of Housing and Urban Development. SEC. 545. <<NOTE: 42 USC 17155.>> REQUIREMENTS FOR ELIGIBLE ENTITIES.
(a) Construction Requirement.-- (1) In general.--To be eligible to receive a grant under the program, each eligible applicant shall submit to the Secretary a written assurance that all laborers and mechanics employed by any contractor or subcontractor of the eligible entity during any construction, alteration, or repair activity funded, in whole or in part, by the grant shall be paid wages at rates not less than the prevailing wages for similar construction activities in the locality, as determined by the Secretary of Labor, in accordance with sections 3141 through 3144, 3146, and 3147 of title 40, United States Code. [[Page 121 STAT. 1671]] (2) Secretary of labor.--With respect to the labor standards referred to in paragraph (1), the Secretary of Labor shall have the authority and functions described in-- (A) Reorganization Plan Numbered 14 of 1950 (5 U.S.C. 903 note); and (B) section 3145 of title 40, United States Code. (b) Eligible Units of Local Government and Indian Tribes.-- (1) Proposed strategy.-- (A) In general.--Not <<NOTE: Deadline.>> later than 1 year after the date on which an eligible unit of local government or Indian tribe receives a grant under this subtitle, the eligible unit of local government or Indian tribe shall submit to the Secretary a proposed energy efficiency and conservation strategy in accordance with this paragraph. (B) Inclusions.--The proposed strategy under subparagraph (A) shall include-- (i) a description of the goals of the eligible unit of local government or Indian tribe, in accordance with the purposes of this subtitle, for increased energy efficiency and conservation in the jurisdiction of the eligible unit of local government or Indian tribe; and (ii) a plan for the use of the grant to assist the eligible unit of local government or Indian tribe in achieving those goals, in accordance with section 544. (C) Requirements for eligible units of local government.--In developing the strategy under subparagraph (A), an eligible unit of local government shall-- (i) take into account any plans for the use of funds by adjacent eligible units of local governments that receive grants under the program; and (ii) coordinate and share information with the State in which the eligible unit of local government is located regarding activities carried out using the grant to maximize the energy efficiency and conservation benefits under this subtitle. (2) Approval by secretary.-- (A) In general.--The <<NOTE: Deadline.>> Secretary shall approve or disapprove a proposed strategy under paragraph (1) by not later than 120 days after the date of submission of the proposed strategy. (B) Disapproval.--If the Secretary disapproves a proposed strategy under subparagraph (A)-- (i) the Secretary shall provide to the eligible unit of local government or Indian tribe the reasons for the disapproval; and (ii) the eligible unit of local government or Indian tribe may revise and resubmit the proposed strategy as many times as necessary until the Secretary approves a proposed strategy. (C) Requirement.--The Secretary shall not provide to an eligible unit of local government or Indian tribe any grant under the program until a proposed strategy of the eligible unit of local government or Indian tribe is approved by the Secretary under this paragraph. (3) Limitations on use of funds.--Of amounts provided to an eligible unit of local government or Indian tribe under [[Page 121 STAT. 1672]] the program, an eligible unit of local government or Indian tribe may use-- (A) for administrative expenses, excluding the cost of meeting the reporting requirements of this subtitle, an amount equal to the greater of-- (i) 10 percent; and (ii) $75,000; (B) for the establishment of revolving loan funds, an amount equal to the greater of-- (i) 20 percent; and (ii) $250,000; and (C) for the provision of subgrants to nongovernmental organizations for the purpose of assisting in the implementation of the energy efficiency and conservation strategy of the eligible unit of local government or Indian tribe, an amount equal to the greater of-- (i) 20 percent; and (ii) $250,000. (4) Annual report.--Not later than 2 years after the date on which funds are initially provided to an eligible unit of local government or Indian tribe under the program, and annually thereafter, the eligible unit of local government or Indian tribe shall submit to the Secretary a report describing-- (A) the status of development and implementation of the energy efficiency and conservation strategy of the eligible unit of local government or Indian tribe; and (B) as practicable, an assessment of energy efficiency gains within the jurisdiction of the eligible unit of local government or Indian tribe. (c) States.-- (1) Distribution of funds.-- (A) In general.--A State that receives a grant under the program shall use not less than 60 percent of the amount received to provide subgrants to units of local government in the State that are not eligible units of local government. (B) Deadline.--The State shall provide the subgrants required under subparagraph (A) by not later than 180 days after the date on which the Secretary approves a proposed energy efficiency and conservation strategy of the State under paragraph (3). (2) Revision of conservation plan; proposed strategy.--Not later than 120 <<NOTE: Deadline.>> days after the date of enactment of this Act, each State shall-- (A) modify the State energy conservation plan of the State under section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322) to establish additional goals for increased energy efficiency and conservation in the State; and (B) submit to the Secretary a proposed energy efficiency and conservation strategy that-- (i) establishes a process for providing subgrants as required under paragraph (1); and (ii) includes a plan of the State for the use of funds received under the program to assist the State in achieving the goals established under subparagraph (A), in accordance with sections 542(b) and 544. [[Page 121 STAT. 1673]] (3) Approval by secretary.-- (A) In general.--The <<NOTE: Deadline.>> Secretary shall approve or disapprove a proposed strategy under paragraph (2)(B) by not later than 120 days after the date of submission of the proposed strategy. (B) Disapproval.--If the Secretary disapproves a proposed strategy under subparagraph (A)-- (i) the Secretary shall provide to the State the reasons for the disapproval; and (ii) the State may revise and resubmit the proposed strategy as many times as necessary until the Secretary approves a proposed strategy. (C) Requirement.--The Secretary shall not provide to a State any grant under the program until a proposed strategy of the State is approved by the Secretary under this paragraph. (4) Limitations on use of funds.--A State may use not more than 10 percent of amounts provided under the program for administrative expenses. (5) Annual reports.--Each State that receives a grant under the program shall submit to the Secretary an annual report that describes-- (A) the status of development and implementation of the energy efficiency and conservation strategy of the State during the preceding calendar year; (B) the status of the subgrant program of the State under paragraph (1); (C) the energy efficiency gains achieved through the energy efficiency and conservation strategy of the State during the preceding calendar year; and (D) specific energy efficiency and conservation goals of the State for subsequent calendar years. SEC. 546. <<NOTE: 42 USC 17156.>> COMPETITIVE GRANTS.
(a) In General.--Of the total amount made available for each fiscal year to carry out this subtitle, the Secretary shall use not less than 2 percent to provide grants under this section, on a competitive basis, to-- (1) units of local government (including Indian tribes) that are not eligible entities; and (2) consortia of units of local government described in paragraph (1). (b) Applications.--To be eligible to receive a grant under this section, a unit of local government or consortia shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a plan of the unit of local government to carry out an activity described in section 544. (c) Priority.--In providing grants under this section, the Secretary shall give priority to units of local government-- (1) located in States with populations of less than 2,000,000; or (2) that plan to carry out projects that would result in significant energy efficiency improvements or reductions in fossil fuel use. [[Page 121 STAT. 1674]] SEC. 547. <<NOTE: 42 USC 17157.>> REVIEW AND EVALUATION.
(a) In General.--The Secretary may review and evaluate the performance of any eligible entity that receives a grant under the program, including by conducting an audit, as the Secretary determines to be appropriate. (b) Withholding of Funds.--The Secretary may withhold from an eligible entity any portion of a grant to be provided to the eligible entity under the program if the Secretary determines that the eligible entity has failed to achieve compliance with-- (1) any applicable guideline or regulation of the Secretary relating to the program, including the misuse or misappropriation of funds provided under the program; or (2) the energy efficiency and conservation strategy of the eligible entity. SEC. 548. <<NOTE: 42 USC 17158.>> FUNDING.
(a) Authorization of Appropriations.-- (1) Grants.--There is authorized to be appropriated to the Secretary for the provision of grants under the program $2,000,000,000 for each of fiscal years 2008 through 2012; provided that 49 percent of the appropriated funds shall be distributed using the definition of eligible unit of local government-alternative 1 in section 541(3)(A) and 49 percent of the appropriated funds shall be distributed using the definition of eligible unit of local government-alternative 2 in section 541(3)(B). (2) Administrative costs.--There are authorized to be appropriated to the Secretary for administrative expenses of the program-- (A) $20,000,000 for each of fiscal years 2008 and 2009; (B) $25,000,000 for each of fiscal years 2010 and 2011; and (C) $30,000,000 for fiscal year 2012. (b) Maintenance of Funding.--The funding provided under this section shall supplement (and not supplant) other Federal funding provided under-- (1) a State energy conservation plan established under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.); or (2) the Weatherization Assistance Program for Low-Income Persons established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.). The only law that appears to amend this 2007 provision is the 2009 Recovery Act. It provides: ENERGY EFFICIENCY AND RENEWABLE ENERGY
For an additional amount for ‘‘Energy Efficiency and Renewable Energy’’, $16,800,000,000: Provided, That $3,200,000,000 shall be available for Energy Efficiency and Conservation Block Grants for implementation of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007 (42 U.S.C.
17151 et seq.), of which $2,800,000,000 is available through the formula in subtitle E: Provided further, That the Secretary may use the most recent and accurate population data available to satisfy the requirements of section 543(b) of the Energy Independence and Security Act of 2007: Provided further, That the remaining $400,000,000 shall be awarded on a competitive basis: …
6) Governor Certification: The Recovery Act provides:
SEC. 410. ADDITIONAL STATE ENERGY GRANTS. (a) IN GENERAL.—
Amounts appropriated under the heading ‘‘Department of Energy—Energy Programs—Energy Efficiency and Renewable Energy’’ in this title shall be available to the Secretary of Energy for making additional grants under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.). The Secretary shall make grants under this section in excess of the base allocation established for a State under regulations issued pursuant to the authorization provided in section 365(f) of such Act only if the governor of the recipient State notifies the Secretary of Energy in writing that the governor has obtained necessary assurances that each of the following will occur:
(1) 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.
(2) The State, or the applicable units of local government that have authority to adopt building codes, will implement the following:
(A) A building energy code (or codes) for residential buildings that meets or exceeds the most recently published International Energy Conservation Code, or achieves equivalent or greater energy savings.
(B) A building energy code (or codes) for commercial buildings throughout the State that meets or exceeds the ANSI/ASHRAE/IESNA Standard 90.1–2007, or achieves equivalent or greater energy savings.
(C) A plan for the jurisdiction achieving compliance with the building energy code or codes described in subparagraphs (A) and (B) within 8 years of the date of enactment of this Act in at least 90 percent of new and renovated residential and commercial building space. Such plan shall include active training and enforcement programs and measurement of the rate of compliance each year.
(3) The State will to the extent practicable prioritize the grants toward funding energy efficiency and renewable energy programs, including—
(A) the expansion of existing energy efficiency programs approved by the State or the appropriate regulatory authority, including energy efficiency retrofits of buildings and industrial facilities, that are funded—
(i) by the State; or
(ii) through rates under the oversight of the applicable regulatory authority, to the extent applicable;
(B) the expansion of existing programs, approved by the State or the appropriate regulatory authority, to support renewable energy projects and deployment activities, including programs operated by entities which have the authority and capability to manage and distribute grants, loans, performance incentives, and other forms of financial assistance; and
(C) cooperation and joint activities between States to advance more efficient and effective use of this funding to support the priorities described in this paragraph.
(b) STATE MATCH.—The State cost share requirement under the item relating to ‘‘Department of Energy; Energy Conservation’’ in title II of the Department of the Interior and Related Agencies Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to assistance provided under this section.
(c) EQUIPMENT AND MATERIALS FOR ENERGY EFFICIENCY MEASURES AND RENEWABLE ENERGY MEASURES.—No limitation on the percentage of funding that may be used for the purchase and installation of equipment and materials for energy efficiency measures and renewable energy measures under grants provided under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance provided under this section.
Montana’s compliance with § 410 is progressing as follows:
A) Building Code: The 2009 IECC has only been out about a month and Montana’s version will be presented to our Building Code Council in March or April and will have gone through the Administrative Rules Adoption Process by July. Thus Montana will be one of the first states to accomplish adoption of the 2009 IECC. Under state law it will apply uniformly statewide. The 2009 IECC is safe harbor for the ASHRAE/IESNA standard 90.1 2007 meaning that if you are compliant with the IECC you are compliant with the 90.1 standard for commercial buildings. So Montana will meet or exceed that code in time to be compliant with § 410(a)(2) of the above Recovery Act section. The process of adopting the 2009 standard may be tracked at: http://www.energycodes.gov/implement/state_codes/state_status.php?state_AB=MT
B) Public Service Commission: PSC Chair, Greg Jergeson has written Governor Schweitzer to confirm that the PSC has implemented or will implement the requirements of Recovery Act § 410(a)(1).[8]
C) With the Governor’s 20x10 initiative and other measures, the Governor’s office and DEQ are working to comply with §410(a)(3)(A); the PSC is doing likewise by requesting its staff to draft a proposed rule on requiring of LED street lighting.
D) The Governor’s office is cooperating with other Western Governors’ Association states to comply with §410(a)(3)(C).
E) Caveat: At least one state
official asserts that Montana will not have any
difficulty complying with 410(a)(3)(B)
because that section refers to the work that is normally completed under the
federally funded State Energy Program, not state law generally. Thus
under Montana’s interpretation of this provision, the fact that Montana’s
renewable portfolio standard has been curtailed by several amendments to
discourage rather than support the expansion of renewable energy, will not
affect Montana’s ability to participate in the competitive (non-formula)
portion of Block Grant Funding.
To comply
Montana will have to say that in administering funding, it has or will to
the extent practicable prioritize the grants toward funding energy efficiency
and renewable energy programs, including – “the expansion of existing programs,
approved by the State or the appropriate regulatory authority, to support
renewable energy projects and deployment activities, including programs
operated by entities which have the authority and capability to manage and
distribute grants, loans, performance incentives, and other forms of financial
assistance.”
F) The Governor has already certified compliance with SEP and ARRA requirements: § 1607 http://www.recovery.mt.gov/content/docs/ARRACertification-GovernorSchweitzerMT040209.pdf ; § 1511 http://www.recovery.mt.gov/content/docs/LaHood-Secy-USDOT-Sec-1511-Cert-031609.pdf ; § 1201 http://www.recovery.mt.gov/content/docs/LaHood-Secy-USDOT-Sec-1201-Cert-031609.pdf
Thus, once Montana’s plan for allocating Grant funds is completed, we will be able to assess whether or not it meets the requirements of §410(a)(3)(B), so the Governor can certify § 410 compliance making Montana ready to compete for Energy Efficiency and Conservation Block Grants.