Obama Administration Awards More than $153 Million for State Energy Programs in Seven States and Territories

July 06, 2009

U.S. Department of Energy Secretary Steven Chu today announced more than $153 million in Recovery Act funding to support energy efficiency and renewable energy projects in Arkansas, Georgia, Kentucky, Mississippi, Montana, New York, and the U.S. Virgin Islands. Under DOE's State Energy Program (SEP), states and territories have proposed statewide plans that prioritize energy savings, create or retain jobs, increase the use of renewable energy, and reduce greenhouse gas emissions. This initiative is part of the Obama Administration's national strategy to support job growth, while making a historic down payment on clean energy and conservation.

"This funding will provide an important boost for state economies, help to put Americans back to work, and move us toward energy independence," said Secretary Chu. "It reflects our commitment to support innovative state and local strategies to promote energy efficiency and renewable energy while insisting that taxpayer dollars be spent responsibly."

The following states and territories are receiving 40% of their total SEP funding authorized under the American Recovery and Reinvestment Act today: Arkansas, Georgia, Kentucky, Mississippi, Montana, New York, and the Virgin Islands.

With today's announcement, these states and territories will now have received 50% of their total Recovery Act SEP funding. The initial 10% of total funding was previously available to states to support planning activities; the remaining 50% of funds will be released once states meet reporting, oversight, and accountability milestones required by the Recovery Act.

Under the Recovery Act, DOE expanded the types of activities eligible for SEP funding, which include energy audits, building retrofits, education and training efforts, transportation programs to increase the use of alternative fuels and hybrid vehicles, and new financing mechanisms to promote energy efficiency and renewable energy investments.

The Recovery Act appropriated $3.1 billion to the State Energy Program to help achieve national energy independence goals and promote local economic recovery. States use these grants at the state and local level to create green jobs, address state energy priorities, and adopt emerging renewable energy and energy efficiency technologies.

Transparency and accountability are important priorities for SEP and all Recovery Act projects. Throughout the program's implementation, DOE will provide strong oversight at the local, state, and national level, while emphasizing with states the need to quickly award funds to help create new jobs and stimulate local economies.

The following states are receiving awards today:

ARKANSAS – $15.7 Million Awarded Today

Arkansas will use SEP Recovery Act funding to reduce energy consumption and advance energy independence by implementing several energy efficiency and renewable energy programs. These programs will also help create and support jobs within the state. Arkansas will use over half of its SEP Recovery Act funding to establish two loan programs to encourage industry and state buildings to invest in energy efficiency technologies. These energy efficiency upgrades will reduce utility bills for both sectors and make businesses more profitable.

After demonstrating successful implementation of its plan, the state will receive almost $20 million in additional funding, for a total of nearly $40 million.

GEORGIA – $32.9 Million Awarded Today

Georgia will implement several programs to improve energy efficiency and renewable energy across residential, commercial, industrial, and governmental sectors with SEP Recovery Act funding. Together these programs will advance the country's energy independence and create and support jobs statewide.

The state will use a large portion of the Recovery Act funding to implement the State Utilities Retrofit Program, administered by the Georgia Environmental Facilities Authority. In this new program, the state of Georgia proposes to allocate $65 million to retrofit state government facilities. This funding will be used to conduct energy audits and assessments and capital projects to pay for the incremental cost difference between standard and high-efficiency technologies. Proposals for funding will be selected based on the projects' ability to comply with state and federal energy goals and priorities, including energy independence, reduction of greenhouse gas emissions, and the creation of green jobs.

After demonstrating successful implementation of its plan, the state will receive more than $41 million in additional funding, for a total of almost $82.5 million.

KENTUCKY – $21 Million Awarded Today

Kentucky will utilize SEP funding from the Recovery Act to advance energy efficiency and renewable energy initiatives, creating and saving jobs across the state. Kentucky will reduce energy consumption through energy efficiency and education assistance to state and local agencies, schools, nonprofits, and the commercial, industrial, and agricultural sectors. These programs will include energy audits and funding assistance for building retrofits in schools and public buildings to reduce operating expenses and save taxpayers money.

Recovery Act SEP funding will also be used to educate students, teachers, and administrators on energy issues, which will expand the knowledge base of younger generations and help provide an understanding of how personal habits can affect energy consumption. Equipping the public and the state's youth with the ability to assess the effects of these habits can greatly reduce our energy dependence.

After demonstrating successful implementation of its plan, the state will receive over $26 million in additional funding, for a total of more than $52.5 million.

MISSISSIPPI – $16.1 Million Awarded Today

Mississippi will use its State Energy Program funding through the Recovery Act to promote energy efficiency in state buildings and initiate selected renewable energy projects. The state plans to initiate a "lead by example" program to enhance energy efficiency in state buildings, including the installation of advanced smart meters to monitor real-time energy consumption. Meters that can gather energy data quickly and identify equipment problems will be installed in various state agencies. The agencies will then be able to analyze their energy use data to know exactly how much energy their facilities are using at any given time so that they can reduce consumption and unnecessary power use where possible. The state will also provide grants, loans, or other incentives to municipalities in Mississippi to purchase hybrid and alternative-fueled vehicles.

In addition, Mississippi will design and implement selected pilot projects for renewable energy installations, targeting several sectors including commercial, industrial, residential, and transportation. On a competitive basis this program will provide incentives to public and private entities to build or expand renewable energy production or manufacturing facilities that produce energy or transportation fuels from biomass, solar or wind resources.

After demonstrating successful implementation of its plan, the state will receive an additional $20 million, for a total of $40 million.

MONTANA – $10.3 Million Awarded Today

Montana will use its Recovery Act funding to undertake projects that will improve the energy efficiency of state buildings, while expanding renewable energy use and recycling infrastructure in the state. State Energy Program funds will support energy efficiency improvements to fifty state-owned buildings and will provide for a significant expansion of the State Buildings Energy Conservation Program. The state will also use Recovery Act funds for grants to speed the implementation of new clean energy technologies that have moved into the production phase but are not yet well known or utilized in the state.

In addition, the Montana Department of Environmental Quality (DEQ), which oversees the SEP program, will be able to increase the amount it lends in low-interest loans to consumers, businesses, and nonprofit organizations to install various renewable energy systems, including wind, solar, geothermal, hydro and biomass.

Under the State Energy Program, DEQ will also expand the state's recycling infrastructure to help limit the quantity of recyclable materials that end up in landfills. As a result of the state's rural nature with small population centers and long distances between communities, it is often difficult to cost effectively recycle materials. With an expanded recycling infrastructure, the state will be able to reduce the need for new materials to be mined and manufactured, which saves energy at all stages of the processing.

After demonstrating successful implementation of its plan, the state will receive an additional $13 million, for a total of $25 million.

NEW YORK –$49.2 Million Awarded Today

New York will direct its State Energy Program Recovery Act funding to programs that will accelerate the introduction of alternative-fuel vehicles into New York communities, boost the energy efficiency of buildings across the state, increase compliance with the state's energy codes, and expand the use of solar power.

The Clean Fleet program will provide funding for eligible entities - such as cities, counties, public school districts, public colleges and universities and others - to accelerate the deployment of alternative fuel vehicles in their fleets. Recovery Act funding will also provide financial support for energy efficiency and retrofit projects in the municipal, K-12 public schools, public university, hospital, and not-for-profit sectors.

A third project aims to achieve at least 90 percent compliance in the commercial and residential sectors for a new statewide Energy Code. With Recovery Act funding, the state will offer technical assistance and local compliance support to local municipal officials, as well as those professions who work closely with energy code buildings, such as architects, engineers, and home builders. Finally, New York will provide SEP funding to encourage installation of a range of solar photovoltaic (PV) and solar thermal systems across the state, and to provide training opportunities for installers.

After demonstrating successful implementation of its plan, the state will receive an additional $61.5 million, for a total of $123 million.

VIRGIN ISLANDS – $8.2 Million Awarded Today

The U.S. Virgin Islands will utilize its State Energy Program Recovery Act funding to advance energy efficiency initiatives and renewable energy projects on the islands. The Virgin Islands Energy Office (VIEO) will establish or expand multiple programs to reduce energy demand in buildings and the transportation sector through energy efficiency education, outreach, and financial assistance.

Buildings initiatives that will receive Recovery Act funding include an expansion of VIEO's existing Energy Star Rebate program, which provides incentives for consumers to purchase energy-efficient products. VIEO will also direct SEP funding to the development and implementation of energy education and training programs to promote energy efficiency in the design, construction, installation and maintenance of a wide variety of buildings and energy systems.

VIEO will also work to implement a financial incentive program for residents to encourage the purchase of hybrid and electric vehicles.

After demonstrating successful implementation of its plan, the Virgin Islands will receive over $10 million in additional funding, for a total of more than $20.5 million.