american recovery and reinvestment act of 2009 public affairs roundtable breakfast june 4, 2009 one...
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American Recovery and Reinvestment Act of 2009
Public Affairs Roundtable Breakfast June 4, 2009
One Commerce Plaza
Albany, New York 12260
P 518.487.7600
F 581.487.7777
www.woh.comCopyright ©2009 Whiteman Osterman & Hanna LLP.
All rights reserved.
Bridges and Roads
Federal legislation authorized $27.5 billion for highway infrastructure improvements
New York’s share was $1.12 billion
Most of the funding then distributed through NYSDOT’s standard allocation process
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Bridges and Roads, cont’d.
Grants for Transportation Investment Generating Economic Recovery (TIGER) Discretionary program administered by USDOT
Secretary Can be used for highway and bridge projects,
public transportation projects, passenger and freight rail projects
Minimum project size is $20 million, max is $300 million
Grant applications due by September 15, 2009
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Criteria for projects Long-term outcomes Job creation and economic stimulus Innovation Partnership
Applications will need to include analysis of costs/benefits, job creation, shovel-readiness, etc.
Priority given to projects that can be completed by February 17, 2012
Bridges and Roads, cont’d.
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Sewer and Water
Federal legislation authorized $6.4 billion in clean water funding
New York received over $500 million for the Clean Water and Drinking Water Revolving Funds
Most funding allocated by position on the Intended Use Plan
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Sewer and Water, cont’d.
Future funding of projects on Intended Use Plan may get easier
Natural Resources Conservation Service (NRCS) - technical assistance for watershed projects
USDA’s Rural Utilities Service – grants and loans for municipalities of less than $10,000
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Sewer and Water, cont’d.
Clean Water Act Section 604(b) projects Eligible applicants include regional public planning
organizations (including interstate organizations) Priorities
Green infrastructure Total Maximum Daily Load planning Phase II Stormwater for Municipal Separate Storm Sewer
Systems (MS4s) and construction planning activities Water quality management planning activities
Application due July 10, 2009
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Broadband Access
Broadband Technology Opportunity Program Federal legislation authorized $4.7 billion Funding being distributed by the U.S. Department of
Commerce: National Telecommunications and Information Administration (NTIA)
Eligible entities State or political subdivision Non–profit foundations, corporations, institutions, or associations,
or any other entity in the public interest First Round Grant RFP to be issued in June
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Broadband Access, cont’d.
Rural Utilities Service - Distance Learning, Telemedicine & Broadband Program Federal legislation authorized $2.5 billion Program to be administered by the Rural Utilities
Service (USDA) Eligible Applicants:
Public and private entities who provide telephone or broadband services in rural areas
75% of the area to be served is in a rural area with insufficient access to high speed broadband service
Being implemented in cooperation with NTIA; no RFPs issued or application deadlines set
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Housing and Urban Development
Neighborhood Stabilization Program $2 billion allocated in Act Funds being distributed by HUD Goals
Establish financing mechanisms for purchase and redevelopment of foreclosed homes
Purchase and rehabilitate homes and residential properties abandoned or foreclosed
Establish land banks for foreclosed homes Demolish blighted structures
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HUD, cont’d.
Neighborhood Stabilization Plan, cont’d. Eligibility: States, local governments, non-profits Recipients have flexibility in developing programs
and funding priorities, but 25% must be used for purchase and redevelopment of abandoned or foreclosed homes for low to moderate income persons
Application due date: July 17, 2009
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HUD, cont’d.
Green Retrofit Program for Multifamily Housing Federal legislation authorized $250 million
Estimated $85 million for grants Estimated $150 million for loans Estimated $15 million for training, monitoring, etc.
HUD’s Office of Affordable Housing Preservation is distributing funds
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HUD, cont’d.
Green Retrofit Program for Multifamily Housing, cont’d. Eligible Applicants for Grants or Loans
Owners of Section 202 projects (32 unit minimum) Owners of Section 811 projects (8 unit minimum) Owners of Section 8 projects (20 units if it has USDA loans, and
72 units without)
Other owners may be eligible for loans only
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HUD, cont’d.
Green Retrofit Program for Multifamily Housing, cont’d. Intent of grants/loans are to allow owners to make
retrofits to improve building efficiency Expected award is up to $15,000 per unit Applications accepted beginning 6/15, awards
granted on first-come, first-served basis (subject to HUD due diligence/financial analysis)
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HUD, cont’d.
Public Housing Capital Fund Federal legislation authorized $4 billion
$3 billion allocated by formula $1 billion awarded by competition
Funds being allocated by HUD’s Office of Public and Indian Housing
Applications accepted from 6/1 to 7/21 or from 6/1 to 8/18 depending on category
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HUD, cont’d.
Public Housing Capital Fund, cont’d. Eligible Applicants
Public Housing Agencies Own or operate low-income public housing
Funding categories Addressing needs of elderly or disabled Public Housing Transformation Gap Financing for Stalled Projects Energy Efficient, Green Communities
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Economic Development Assistance Program
$150 Million allocated to this Program
Funds being distributed by the U.S. Commerce Department (Economic Development Administration)
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Economic Development Assistance Program, cont’d.
Program goal: To provide economic stimulus to regions that have experienced sudden and severe economic dislocation and job loss
Provides funding for construction or rehabilitation of essential public infrastructure and facilities, and develop regionally focused economic recovery and growth strategies
50% cost sharing requirement (may be satisfied by in-kind contributions)
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Eligible Applicants State, city, or other political subdivisions Regional organizations Institutions of higher education Must meet certain “economic distress criteria”
Unemployment rate 1% higher than National average Per capita income 80% or less of National average “Special Need” community
Economic Development Assistance Program, cont’d.
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Clean Fleets
Alternative Fuel and Advanced Technology Vehicles Pilot Program Federal legislation authorized $300 million Program being administered by DOE Reimburses grantee for incremental cost to
purchase new alternative fuel vehicles Award size expected to be between $5 million
and $15 million per project
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Clean Fleets, cont’d.
Alternative Fuel and Advanced Technology Vehicles Pilot Program, cont’d Eligible Applicants
State or Local Governments Metropolitan Transportation Authority
50% cost share required Selection criteria: petroleum reduction, emissions
reductions, ease of implementation Applications due September 30, 2009
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Weatherization
$5 billion authorized for weatherization projects under the Act
New York share: $394.6 million Being distributed through existing
Weatherization Assistance Program (WAP) DHCR receives funds, distributes to its
network of subgrantees for implementation Eligibility: Any household at 200% of federal
poverty guideline; up to $6,500 per homeCopyright ©2009 Whiteman Osterman & Hanna LLP.
All rights reserved.
Websites
http://recovery.ny.gov http://www.recovery.gov
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Peter Trimarchi, Esq.Whiteman Osterman & Hanna LLP(518) [email protected]
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Stimulus Funding for Energy and Energy Efficiency
Public Affairs Roundtable Breakfast June 4, 2009
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ARRA Tax Credits
Treasury Grants instead of Production Tax Credits for projects where construction started in 2009 or 2010
Temporarily replaces tax equity market that has disappeared
Makes deal simpler Decreases financing costs Three year extension of the Production Tax Credit (PTC)
for wind facilities placed in service by 12/31/12; and geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities placed in service by 12/31/13 (solar already extended in last congress)
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ARRA Tax Credits
Investment Tax Credit (ITC) expanded from wind and solar to geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities
Advance Energy Manufacturing ITC (30% up to $2.3 billion) for investment in advanced energy manufacturing
Extends the bonus depreciation of 50% that Congress enacted last year through 2009 . These write offs can be applied to capital expenditures ranging from $250,000 to a newly increased threshold of $800,000
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ARRA Direct Spending
$16.8 billion Total Direct Spending for Renewable Energy and Energy Efficiency programs over next ten years
$11 billion to modernize the nation's electricity grid with smart grid technology
$2.5 billion for renewable energy and energy efficiency R&D, demonstration and deployment activities
$2 billion for grants for the manufacturing of advanced batteries and components. This includes the manufacturing of advanced lithium ion batteries, hybrid electrical systems, component manufacturers, and soft-ware designers
$300 million to the DOD for research, testing and evaluation of projects to energy generation, transmission and efficiency
$100 million for Navy and Marine Corps facilities to fund energy efficiency and alternative energy projects.
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ARRA Bond and Loan
$1.6 billion of new clean energy renewable bonds (CREBS) to finance wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities
One third of the authorized funding will be available for qualifying projects of state/local/tribal governments, one-third for public power providers and one-third for electric cooperatives
$6 billion temporary loan guarantee program for renewable energy power generation and transmission projects that begin construction by 9/30/11 up to $500 million of the overall $6 billion can be used for the development of
leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce greenhouse gas emissions
expected to create over $60 billion in private financing
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NYSERDA
Block Grant Funding
Ener
gy S
tar
State
Energy
Plan
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NYSERDA’s Role
$123mm to fund state energy plan (SEP), which means funding for: increase energy efficiency to reduce energy costs and
consumption for consumers, businesses and government; reduce reliance on imported energy; improve the reliability of electricity and fuel supply and the
delivery of energy services; and reduce the impacts of energy production and use on the
environment.
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NYSERDA’s Role Con’t
More specifically, activities carried out and results achieved with SEP ARRA funding will be assessed according to the following performance metrics: Jobs created Energy saved (kWh/therms/gallons/Btus/etc.) Renewable energy installed capacity and generated GHG emissions reduced (CO2 equivalent)
Energy cost savings Funds leveraged
Funds will be made available through a competitive bid program through NYSERDA
See http://www.nyserda.org/Economicrecovery/sep.asp for more info.
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NYSERDA’s Role Con’t
Energy Efficiency and Conservation Block Grants $175,122,300 $17,856,360 to NYSERDA small municipalities $11,904,240 to NYSERDA all municipalities $23,739,000 to 10 largest count $121,622,700 to 44 large cities/towns
Large city, county, and tribal organization applications due to DOE by 6/25/09
NYSERDA will solicit applications for projects from small municipalities following DOE approval of Plan
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NYSERDA Role Con’t
Energy Efficiency Appliance Rebate Program and the ENERGY STAR® Program - $300,000,000 Pending issuance of funding opportunity by DOE NYSERDA will receive funds from DOE and structure program for
distribution
Electricity Delivery and Energy Reliability – $4,500,000,000, New York State Share from competitive grants to be determined DOE issued FOA for Synchrophasor Research on 3/27/09; applications
due on 5/27/09 DOE issued Notice of Intent to issue funding opportunity for Smart Grid
Investment Grant Program on 4/16/09; applications available on 6/17/09; applications due on 7/29/09
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Division of Housing and Community Renewal
Weatherization New York received $98.8 million in regular program funding
for the 2009-2010 Program Year. This amount included $36.6 million in DOE funds and $62.2 million of new HEAP funds.
The ARRA will provide an additional $394,686,513 in DOE program funds.
Distributed to counties by formula.
http://www.dhcr.state.ny.us/Publications/WeatherizationRecoveryActFundingPlan/Weath_ARRA_Plan.pdf
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Renewable Energy Provisions
American Recovery and Reinvestment Act of 2009 Helpful websites:
http://www.recovery.ny.gov/ http://www.nyserda.org/pdfs/EconomicStimulusFunding.pdf http://www.nyserda.org/economicrecovery/default.asp
The full text of the tax provisions in the stimulus package can be found here. http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf
The full text of the appropriation provisions in the stimulus package can be found here. http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf
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Catherine Hill, Esq.Whiteman Osterman & Hanna LLP(518) [email protected]
Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.