Amy Royden-BloomSEP Manager

NASEO Midwest Regional MeetingU.S. Department of Energy - State Energy Program

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Today’s Topics

• WIP Overview & Budget

• State Energy Program Update

• SEP Midwest Update

• Policy & Technical Assistance Resources

• Upcoming Events/Initiatives

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WIP is part of EERE’s balanced research, development, demonstration, and deployment (RDD&D) approach to accelerate America’s transition to a

clean energy economy.

WIP’s mission is to catalyze the deployment of energy efficiency and renewable energy technologies and practices by a wide range of

government, community, and business stakeholders, in partnership with state and local organizations.

WIP supports DOE’s strategic objective to “deploy the clean energy technologies we have.” These typically near-term activities produce

almost immediate results in the form of greater energy efficiency, lower energy use, expanded renewable energy capacity, and economic

development.

WIP Mission & Strategic Objective

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Weatherization & Intergovernmental Programs (WIP)

• State Energy Program (SEP): State-led energy projects serve as an important foundation for reducing energy use and costs, developing environmentally conscious state economies, and increasing renewable energy generation.

• Weatherization Assistance Program (WAP): State/local agencies carry out residential energy retrofits in low–income residences that reduce energy consumption while concurrently reducing energy costs for these families.

• Policy & Technical Assistance (P&TA) Team: Assists in developing tools and solutions to barriers facing state and local government expansion of energy efficiency policies and programs and replicating successful efforts demonstrated by public sector leaders.

WIP activities are focused in three primary areas:

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WIP Budget Summary

Breakdown FY 2015 Enacted

FY 2016 Enacted

FY 2017 Request

Weatherization Assistance Program Grants (formula and competitive grants)

$189.6M $211.6M $225M

Training and Technical Assistance $3M $3M $5M

Total, Weatherization Assistance Program $193M $215M $230M

State Energy Program $50M $50M $70M

Cities, Counties & Communities Energy Program - - $26M

Total, Weatherization and Intergovernmental $243M $265M $326M

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National SEP Formula Successes

• Increased the energy efficiency of more than 19,000 buildings (115.8 million square feet) through the installation of energy upgrades;

• Supported the installation of more than 40,000 renewable energy systems (8.6 million kilowatts);

• Educated 2.6 million people in performing energy audits and upgrades through more than 33,000 workshops, training sessions and/or webinars;

• Conducted thousands of energy audits of residential, commercial and industrial buildings to analyze potential energy and energy cost savings;

• Provided energy efficiency technical assistance to states, territories and local communities to aid them in implementing cost-effective energy efficiency actions;

• Assisted in the implementation of energy emergency plans in several states;

• Demonstrated and pilot innovative energy projects with the private sector, K-12 schools and universities; and

• Worked with utilities to establish and implement complementary efficiency programs.

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Improved FOA/ALRD Process Since 2014

• Replaced formal FOA with ALRD

• Negotiation calls with states early in process

• Detailed guidance on budget justifications

• Changed project period from 5 years to 3 years.

100% of Formula Grants ON TIME and WITHOUT CONDITIONS for the past two years!

Formula ALRD

• FOA issued in January instead of April

• FOA reduced by 41 pages!

• Technical Merit Review Criteria reorganized and consolidated

• New AOI in FY16: Up to 750K for TA for states without a prior year competitive award

Competitive FOA

Consistent timeline for application period and selections!

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*New* SEP Operations Manual

Coming Soon!

Topics Covered:

• SEP Funding Sources and Federal Regulations

• Rules and Procedures for Formula Funding

• Program Administration: Monitoring & Reporting

• DOE Technical Assistance Resources

• Appendix: Fact Sheet, PVE Funding Overview, Success

Story template, etc.

Available here:

http://energy.gov/eere/wipo/state-energy-

program-guidance

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SEP FY16 Competitive FOA Summary

FOA issued January 19, 2016. Applications deadline was March 31, 2016.

DOE will announce the selections in early Summer 2016.

The FY15 Competitive Award kickoff event was held at the NASEO Energy Policy Outlook Conference in February.

Area of InterestFOA Funding Range

($)Number of

ProjectsAward

Duration

1: State Energy Planning

$200,000-$300,000 singlestate; up to $500,000 multi-state (up to 3);

$800,000 multi-state (4+)

Up to 5 Up to 2 years

2: Opportunities for Innovative EE & RE

$200,000-$300,000 single state; approx. $500,000

multi-state (up to 3); approx. $800,000 multi-

state (4+)

Up to 12 Up to 3 years

3. Technical Assistance to Advance SEP

Formula Activities

Up to $750,000; Approximately $50,000 -

$75,000 per award.Up to 10 Up to 2 years

Totals Up to $5.75 million Up to 27 2-3

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NEW

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Status of SEP Revolving Loan Funds

STATS: $690M in ARRA funding has

been budgeted to 40 state-run financing programs

$602M of available funds for RLF programs.

94% of available RLF funds have been loaned out to date.

Agricultural0%

Commercial18%

Industrial23%

Institutional5%

Public45%

Residential9%

Transportation0%

Loan Recipient Sector, by loan value

Sector breakout of loans :

RLF Loans Given (#)

RLF Loans Given ($)

Loans Fully

Repaid (#)

Loans Fully Repaid ($)

Agricultural 34 1.8M 4 36,522

Commercial 275 106M 79 19M

Industrial 98 137.2M 13 9.6M

Institutional 27 27.7M 1 1.2M

Public 1,167 267M 249 24.4M

Residential 3,269 51.1M 885 10.3M

Transportation 2 2.8M 1 2.3M

Total 4,872 593.9M 1,232 66.9M

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Midwest FY15 Market Titles Investment

Buildings21%

Electric Power and Ren. Energy

11%

Energy Education9%

Industry10%

Policy, Planning and Energy Sec.

47%

Transportation1%

Midwest Planned Formula Allocations PY15

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FY15 Competitive Awardees

Opportunities for Innovative Energy Efficiency and

Renewable Energy Practices

Nebraska

New Mexico

• Benchmarking energy usage data from 60-100 municipal wastewater plants in the state.

• Technical and financial assistance for more than 20 of the benchmarked plants to achieve savings of 20% or better.

• Expansion of Dollar and Energy Saving Loan program to offer 1% loans to municipalities for TA and retrofits in plants to reduce energy usage or minimize waste.

Tennessee

• Reducing electric energy use at 74 municipally-owned facilities through education, comprehensive energy audits, and direct technical assistance.

• Educational workshops, facility-specific energy use data, and one-on-one TA to squash barriers to implementation of energy efficiency measures by WWTFs.

• Measured through comparison benchmarking by calculating energy savings.

New Hampshire

• Tennessee and Alabama are advancing adoption of energy efficiency improvements 24 local government wastewater and water treatment facilities through onsite energy assessments and management.

• The “Waste Not” program is helping low-income communities advance energy management of wastewater treatment facilities by assessing energy savings opportunities, implementing renewable energy and energy conservation plans, measuring progress, and sharing lessons learned statewide.

• Energy Audits and recommendations will be implemented to achieve a goal of 20% or more in energy savings.

EERE and Wastewater Treatment Facilities - SEP

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SEP Accomplishments in the Midwest Region

Contributed to the increased energy efficiency of more than 4,100 buildings (14 million square feet) through the installation of energy upgrades.

Supported the installation of nearly 3,800 renewable energy systems (total capacity of 5.2 million kW)

Conducted nearly 3,500 workshops or training sessions to educate 500,000 people in performing energy audits and upgrades and contributing to the installation of renewable energy systems.

Aggregated grantee-reported accomplishments of the NASEO Midwest region – IA, IL, IN, MI, MN, MO, OH, WI. Metrics reflect formula-funded SEP work from 2010 to March 2016

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Focus & Areas of Interest Investment Awardees

Commercial/Industrial Buildings

FY 12 – Advancing EE in Public Buildings $2M IL, IA, MO, WI

FY 13 – Advancing Industrial EE $253,093 IA, MN, WI

FY 13 – Clean Energy Economic Opportunity Roadmaps $400,000 MI

Finance

FY 12 – Deploying Fee-based Self-funded Public Facility Programs $601,924 MN

FY 13 – Driving Demand for Public Facility Retrofits $768,218 IA, WI

Advancing State Planning, Policies and Programs

FY 14 – State Energy Planning $855,630 IL, MI, MN

FY 14 – Opportunities for Innovative EERE Practices $279,432 MN

FY15 – Opportunities for Innovative EERE Practices $567,585 MN, MO

TOTAL $5.8M

SEP Competitive Awards (FY12-15): Midwest Region

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SEE Action Guide for States

• About EE

– Addresses multiple pollutants (including C02) for state-specific reasons

– Is an established energy resource

– Saves money and is cost-effective

• Approaches to documenting energy savings and emission reductions

• Practical Considerations

– Intergovernmental coordination

– Workforce development

• Pathways – for each pathway:

– Definition/description

– Policies foundation for success

– Brief case studies

– Methods for estimating and determining energy savings

– Expected range of energy savings and emissions reductions

• EE for low income communities

Visit: energy.gov/eere/slsc/EEopportunities

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State & Local Solution Center - New and Improved!

Curated EERE initiatives and resources in the areas of:

• Energy Saving Homes, Buildings, and Manufacturing

• Renewable Power• Sustainable Transportation

Four topics of interest:

• Energy Savings Performance Contracts• Benchmarking• Outdoor Lighting, and • Energy Efficiency Savings Opportunities

and Benefits

Multi-faceted search functionality

Filter by Resource Area

Filter by Assistance Area

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State and Local Resources for a Clean Energy Future

What you will find:

• Targeted opportunities for impact in your jurisdiction

• Key resources from each of the four action areas

• Information on initiatives and resources in renewable power, sustainable transportation, and energy-saving homes, buildings, and manufacturing from across EERE

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State and Local Spotlight

Subscribe: http://wip.energy.gov/solutioncenter

or Email Us: stateandlocal@ee.doe.gov

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Your Successes are featured on the DOE Blog!

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*New* Accelerators – Launched May 9!

• Clean Energy for Low Income Communities: Develop plans to identify funding that will lead to the implementation of expanded installation of energy efficiency and distributed renewables in low income communities.

• Combined Heat and Power for Resiliency: Develop plans for communities to capitalize on CHP’s strengths as a reliable, high efficiency, lower emissions electricity and heating/cooling source for critical infrastructure.

• Wastewater Infrastructure: State, regional, and local agencies will work to improve the energy efficiency of water resource recovery facilities by at least 30 percent on their path to more sustainable infrastructure of the future.

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Clean Energy for Low Income Communities Accelerator

Overview: • Aims to lower energy bills in low income communities through expanded installation of energy

efficiency and distributed renewables. • Encourages development of partnerships and replicable models and identifies funding options

for state/local governments or utility programs to provide EE/RE access to communities.

Accelerator Goals• Identify ways to overcome market barriers to clean energy installations in low income

communities; • Demonstrate successful partnership approaches for integrating EE and distributed renewables

delivery across community-based organizations, program providers, contractors, financial institutions and customers;

• Share resources and technologies that help low income communities install EE and RE; • Increase visibility and replication of best practice approaches and successful models.

24 partners to date, including six states:CO, CT, FL, MA, MI, TN!

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Overview:

• Will work over three years with state, regional, and local agencies engaging with wastewater treatment facilities to accelerate a pathway toward a sustainable infrastructure of the future.

• The Accelerator aims to catalyze the adoption of innovative and best-practice approaches in data management, technologies, and financing for infrastructure improvement.

Accelerator Goals

• Demonstrate cutting-edge approaches toward a sustainable wastewater infrastructure and yield road-tested examples for other facilities;

• Document model plans for transitioning to a sustainable infrastructure that will help drive more solutions in the industry;

• Develop assessment and decision tools for selecting best-practice approaches and tools on the pathway toward a sustainable infrastructure;

• Develop recommendations for post-Accelerator next steps.

7 partners to date, including five states:AL, CT, MI, TN, UT!

Wastewater Infrastructure Accelerator

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Better Buildings Summit

• Occurred May 9-11 in Washington D.C.

• Great success with nearly 900 attendees from federal, state and local government, commercial, industrial, financial and not-for-profit sectors.

• An outstanding set of sessions, discussions, networking and learning.

• Exchange of best practices and demonstrated market solutions.

• A showcase of solutions to cut energy intensity in buildings by 20% over the next ten years.

• 2015 Summit focused on 14 sectors, including data-driven results, financing and partnerships, high-impact technologies, portfolio-wide strategies, and much more.

• 2016 Summit included sessions on benchmarking, ESPCs, energy data tracking, and much more!

View the 2016 Progress Report on the Better Buildings Solution Center! http://betterbuildingssolutioncenter.energy.gov/summit

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• SEP Competitive FOA

– Reaction to FY16 AOI 3 – TA related to formula work

– Suggestions for SEP Improvement?

• Un-costed balances

– Spend down funds (especially if at the end of 3-year grant period)

– DOE policy: No extensions unless “extraordinary circumstances”

• Challenges for SEOs/DOE TA needed

Items for Discussion

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THANK YOU!

Questions?

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Appendix

Appendix

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• Two-thirds to President’s 3 billion CO2 for 2030 from appliance standards• Next generation technologies

– Revolution in Solid-State Lighting – Zero-Energy Ready Homes

• Smart Manufacturing - $70M FOA (Sept. 2015): Public-Private Partnership to Support Advancements in Advanced Sensors, Controls, Modeling

• New Federal EO– “Planning for Federal Sustainability In the Next Decade” (March 2015) with new goals for 2025– % reduction targets for GHG emissions by 2025, relative to a fiscal year 2008 baseline. – Reduce agency building energy intensity by 2.5% BTU annually by 2025, relative to baseline of

building energy use in 2015. – Implement performance contracts for Federal buildings by fulfilling existing agency performance

contracting commitments towards the goal of $4 billion in Federal performance-based contracts by the end of calendar year 2016.

• Better Buildings, Better Plants……

• State and local engagement in best practice policies and programs

• Low income weatherization: 1.5 million households weatherized since 2009 (via EERE funding efforts only)

EERE Tremendous Progress

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EERE Vision, Mission, and Principles

MissionTo create and sustain American leadership in the transition to a global clean energy economy

Organizational Principles

• Economic Prosperity

• Affordability

• Reduced Environmental Impact

• Energy Security

• Consumer Choice

VisionA strong and prosperous America, powered by clean, affordable, and secure energy

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EERE Strategic Plan Structure

Goal 1: Accelerate the development and

adoption of sustainable transportation

technologies

Goal 2: Increase the generation of electric

power from renewable sources

Goal 3: Improve the energy efficiency of our

homes, buildings, and industries

Goal 4: Stimulate the growth of a thriving

domestic clean energy manufacturing

industry

Goal 5: Enable the integration of clean

electricity into a reliable, resilient, and

efficient electricity grid

Goal 6: Lead efforts to improve federal

sustainability and implementation of

clean energy solutions

Goal 7: Enable a high-performing, results-

driven culture through effective

management approaches and practices

EE Related Goals

Goal 3: Improve the energy efficiency of our homes, buildings, and industries

Goal 4: Stimulate the growth of a thriving domestic clean energy manufacturing industry

Goal 6: Lead efforts to improve federal sustainability and implementation of clean energy solutions

Goal 7: Enable a high-performing, results-driven culture through effective management approaches and practices

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Cities, Counties & Communities Energy Program Request

• The goal of WIP’s budget request for Cities, Counties & Communities Energy Program is to launch a new initiative to provide competitive funding and technical assistance to Climate Action Champions, Neighborhood Revitalization Initiative partners, and other applicants for energy efficiency and renewable energy integration planning and implementation projects.

• The $26 million request in competitive awards and technical assistance supports local governments, public housing authorities, and non-profits to catalyze clean energy solutions in community development and revitalization efforts.

• Benefits: There is an estimated 460 Trillion Btu of energy efficiency potential in local government buildings and community infrastructure, and $6.0 billion in annual energy cost savings, according to the study “Unlocking Energy Efficiency in the U.S. Economy,” McKinsey Global Energy and Materials (July 2008).

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SEP National Evaluation

Released in September 2015. SEP addressed NASEO’s questions on a March 21 webinar.

True Independent Approach:• Evaluation performed by an independent contractor

(DNV GL). Contract managed through ORNL.• Used Peer Review Panel of outside evaluation

experts to review the evaluation approach and results

Evaluation Focus:• Focus on SEP overall rather than individual state

performance• Project selections based on random samples of 6

broad program area categories• Consists of two parts: A retrospective evaluation that

covers Program Year 2008, reflective of a typical year in SEP operations; and an American Recovery and Reinvestment Act (ARRA) of 2009 evaluation that provides insight into the unique program that was administered by DOE in the national effort to create jobs and promote economic recovery.

• More information on SEP website: http://energy.gov/eere/wipo/downloads/state-energy-program-national-evaluation

OVERVIEW OF PY2008 FINDINGSSEP-attributable Lifetime Energy Savings and Renewable Generation:

9.7 million MMBtus

SEP-attributable Lifetime Energy Cost-Savings

$94.6 million

Annual Energy Cost Savings Per Federal Dollar Spent over lifetime of measures installed

$4.50

Carbon Emissions Avoided (Associated with SEP-attributable Energy Savings)

0.57 million metric tons of carbon

Jobs Supported >2,000

OVERVIEW OF ARRA FINDINGSSEP-attributable Lifetime Energy Savings and Renewable Generation:

2.8 billion MMBtus

SEP-attributable Lifetime Energy Cost-Savings

$7.8 billion

Annual Energy Cost Savings Per Federal Dollar Spent over lifetime of measures installed

$3.50

Carbon Emissions Avoided (Associated with SEP-attributable Energy Savings)

164.14 million metric tons of carbon

Jobs Supported >135,000

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Goals: • Commercial, industrial buildings & multifamily housing 20%+ more efficient over 10 years

• Save $80B+ annually for U.S. organizations after 10 years

Outcomes to date:

• More than 235 partner organizations - 63 state and local - representing >3.5B square feet across the public and private sector

• 2.5% Annual Energy Savings ($840M) across sectors

Leadership in Action in States (select examples)• Maryland: Fosters agency engagement for benchmarking through the launch of the 16-

Agency Energy Competition, targeting the highest energy consumers and rewarding the most efficient winners at the Maryland Energy CUP event.

• Massachusetts: Innovative financing strategy allows state to act as its own ESCO, reducing the costs of financing. Ranked 1st on ACEEE State Energy Efficiency Scorecard for fourth year in a row.

• Minnesota: Established the Guaranteed Energy Savings Program to enable state agencies and local governments to use ESPCs effectively, with more than 25 planned projects.

States with greatest energy savings to date: Delaware (17%) and Maryland (21%)!

Better Buildings Challenge: Accomplishments

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• Expanding use of ESPCs by state and local governments and K-12 schools, by catalyzing public-sector energy efficiency investments of $2 billion through best-practice approaches to enhance ESPC programs.

• 23 Accelerator partners have committed $767 million to new contracts

• 17 states/commonwealths/U.S. territories, 5 cities, and 1 school district.

• Tools and a framework to enable broad deployment of energy efficient street and outdoor lighting systems; commitments to replace at least 1.5 million poles in next two years.

• 23 OLA Partners: 3 states, 15 cities, 5 Regional Energy Networks

• 700,000+ lights committed to high performance upgrades!

Better Buildings Accelerators: ESPC & OLA

ESPC Accelerator Outdoor Lighting Accelerator

STATE PARTNERS:

AL, CO, CT, HI, IL, MA, MI, MN, MO, MT, NV, NM, NC, SC, VA, WA,

USVI

STATE PARTNERS:

RI, TN, WA

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EERE and Wastewater Treatment Facilities - AMO

Industrial Assessment Centers (IAC) – located at 24 premier engineering universities around the country – are administered by DOE’s Advanced Manufacturing Office and support small and medium-sized American manufacturers by conducting energy audits to reduce energy use and improve productivity and competitiveness.

DOE is now offering up to 50 assessments per year at no cost to industrial or municipal water and wastewater plants to analyze waste and water flows.

IAC LocationsSince including water and wastewater plants in AMO’s technical assistance offerings…

• 50 water and wastewater plants received assessments from local IAC - plant sizes ranging from 1.6 million gallons per day (MGD) flow to 115 MGD.

• Annual utility bills range from $107,361 to >$5M.

• Average of $232,000 in potential cost savings per plant.

• Identified annual savings average $31,000 / MGD.

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• Goal: Significantly accelerate efforts in Alaskan communities and native Alaskan villages to develop effective tools to advance the use of reliable, affordable, and energy efficient solutions that are replicable throughout Alaska and other Arctic regions.

• DOE released a Notice of Technical Assistance in December for the new $4M Remote Alaskan Communities Energy Efficiency Competition (RACEE). In February, 64 communities were designated as Community Efficiency Champions.

Remote Alaskan Communities Energy Efficiency Competition

Ph

ase

1 Pledges:

60+ remote Alaskan communities and native Alaskan villages pledged to reduce energy use by at least 15% (per capita) by 2020.

Ph

ase

2 Technical Assistance:In coordination with the Alaska Energy Authority DOE will provide up to 20 applicants TA to gather baseline energy data and develop plans for energy efficiency projects.

Ph

ase

3 Implementation:

Funding Opportunity Announcement selections for successful applicants to implement energy efficiency plans.

February 2016 April 2016 October 2016