ENERGY STIMULUS FUNDING OPPORTUNITIES

1. ENERGY STIMULUS FUNDING OPPORTUNITIES Prepared by Salomon Torres District Director Office of Congressman Ruben Hinojosa May 26, 2009

2. SOURCE OF FUNDING U.S. DEPARTMENT OF ENERGY • American Recovery and Reinvestment Act of 2009 • Passed by Congress and signed into law Feb. 17, 2009 • For Texas, State Energy Conservation Office (SECO) is the fiscal agent for DOE. • SECO falls under the State Comptroller’s Office in Austin

3. HOW BIG IS THE POT OF $$$$$$$$$$$$$$? • $38.725 billion for the U.S. Department of Energy • $16.8 billion for the Office of Energy Efficiency & Renewable Energy (EERE) • Approximately $447,941,900 for Texas

4. EERE Programs • State Energy Program -- $3.1 billion • Energy Efficiency and Conservation Block Grants (EECBG) -- $3.2 billion • Weatherization Assistance Program – $5 billion • Energy Efficient Appliance Rebate Program (Support for Energy Star Program) -- $300 million

5. STATE ENERGY PROGRAM • $218,782,000 for Texas • SECO submitted its spending plan to DOE on May 12. • DOE has up to 60 days to approve plan • Program Areas Submitted to DOE: ** Building Efficiency and Retrofit Program ** Transportation Efficiency Program ** Distributed Renewable Energy Technology Program ** Energy Sector Training Centers ** Public Education and Outreach • After DOE approves plan, SECO to issue grant applications

6. STATE ENERGY PROGRAM Uses of Funds: • to provide rebates to consumers for home energy audits or other energy-saving improvements; • to develop renewable energy and alternative fuel projects; • to promote Energy Star products; • to upgrade the energy efficiency of state and local government buildings; and, • other innovative state efforts to help families save money on their energy bills.

7. CURRENT/PAST SECO PROJECTS Beneficiaries of SECO's services include state agencies, public schools, city and county governments, institutions of higher education, private industries, and residential energy consumers. • Renewable Energy • Pollution Mitigation • Alternative Fuels • Energy Education Curriculum • Energy Education Outreach • LoanSTAR • State Agencies/Higher Ed • Energy Management Services • Housing Partnership • Transportation Energy • Texas Colonias

8. CURRENT/PASTSECO PROJECTS Renewable energy projects: • Wind Energy • Biomass Energy • Solar Energy • Geothermal Energy • Solar for Schools • Shrimp Net Project • Renewable Energy Education • Energy Education Outreach • Energy Education Curriculum • Colonias Projects

9. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS (EECBG) • $208,759,900 for Texas >> $163,121,800 direct allocations to entitlement cities and counties (cities over 35,000 pop. and counties over 200,000 pop.) >> $45,638,100 SECO discretionary grants for other cities and counties >> June 25, 2009 – by when states and entitlement entities must submit their applications >> DOE has up to 120 days to approve applications

10. Direct EECBG Allocations toCities and Counties • Brownsville -- $1,659,200 • Edinburg -- $683,100 • Harlingen -- $645,100 • McAllen -- $1,292,500 • Mission -- $629,500 • Pharr -- $608,900 • Hidalgo County -- $3,539,500

11. MORE $$$$:COMPETITIVE EECBGBLOCK GRANTS • $456 million to be made available for local energy efficiency projects • Department of Energy solicitation for proposals is pending

12. ELIGIBLE USES FOREECBG FUNDS • Development of an Energy Efficiency and Conservation Strategy and Technical Consultant Services to assist in the development of such a strategy. • Residential and Commercial Building Energy Audits. • Financial Incentive Programs and Mechanisms for energy efficiency improvements such as energy savings performance contracting, on-bill financing, and revolving loan funds. • Grants to nonprofit organizations and governmental agencies for the purpose of performing Energy Efficiency Retrofits. • Energy Efficiency and Conservation Programs for Buildings and Facilities. • Development and Implementation of Transportation Programs to conserve energy.

13. ELIGIBLE USES FOREECBG FUNDS • Building Codes and Inspections to promote building energy efficiency. • Energy Distribution Technologies that significantly increase energy efficiency, including distributed resources, combined heat and power, and district heating and cooling systems. • Material Conservation Programs including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency. • Reduction and Capture of Methane and Greenhouse Gases generated by landfills or similar waste-related sources. • Energy efficient Traffic Signals and Street Lighting. • Renewable Energy Technologies on Government Buildings. • Any Other Appropriate Activity that meets the purposes of the program and is approved by DOE.

14. Weatherization AssistanceProgram • $326,975,732 for Texas • All formula dollars • Texas Department of Housing and Community Affairs = state fiscal agent Uses of funds: • improve the energy efficiency of the homes of low-income families by adding more insulation, sealing leaks, or modernizing heating and air conditioning equipment

15. WEATHERIZATIONASSISTANCE PROGRAM • Income eligibility -- families making up to 200% of the federal poverty level. For a family of four, this translates to about $44,000 per year. • Grant up to $6,500. • Allows new weatherization assistance for homes that were weatherized as recently as 1994. • Note: $4 billion for public housing units (HUD)

16. WEATHERIZATIONASSISTANCE RECIPIENTS NOTE: TDHCA Plan Subject to Approval by DOE • Cameron-Willacy Counties Community Projects -- $5,129,658 – 598 units • Community Action Corporation of South Texas -- $10,789,991 – 1,258 units • South Texas Dev. Council of Government -- $1,704,115 – 199 units

17. WEATHERIZATION ASSISTANCERECIPIENTS City of Brownsville -- $3,157,780 – 368 units City of McAllen -- $1,585,466 – 185 units NOTE: 15 grant competitive awards @ $500,000 to recipients

18. Energy Efficient ApplianceRebate Program • $300 million national program • $20,400,000 for Texas • DOE is determining and writing guidance on how allocations will be done • Announcement expected in June • Expectation is that the funding will be divided up based on a population formula.

19. CONSUMER INCENTIVES • $21 billion in energy tax incentives for consumers and businesses HOMES IMPROVEMENTS – ENERGY EFFICIENCY • 30% tax credit (up to $1,500) for energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes • Improvements done starting January 1, 2009 through Dec. 31, 2010

20. CONSUMER INCENTIVES HOME IMPROVEMENTS – RENEWAL ENERGY • 30% tax credit for installation of solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems • Systems installed before December 31, 2016

21. CONSUMER INCENTIVES AUTOMOBILE TAX CREDITS • Income tax credit for purchase or lease of new hybrid gas-electric or truck • Vehicles placed in service starting January 1, 2006 and purchased by December 31, 2010 • Amount of credit depends on fuel economy, weight of vehicle, and whether tax credit has been or is being phased out • Alternative-fuel vehicles, diesel vehicles with advanced lean-burn technologies, and fuel-cell vehicles also eligible for tax credits

22. SECO CONTACT • State Energy Conservation Office111 East 17th Street, #1114Austin, Texas 78701(512) 463-1931FAX: (512) 475-2569 • Lisa Elledge, Stimulus Program Manager • 512-463-7392 tel. • Lisa.Elledge@cpa.state.tx.us

23. SECO WORKSHOP SPONSORED BY CONGRESSMAN RUBEN HINOJOSA TENTATIVE Monday, June 29 or Tuesday, June 30 Place TBD Stay tuned.

24. USEFUL LINKS SECO http://www.seco.cpa.state.tx.us/ U.S. DEPARTMENT OF ENERGY http://www.eecbg.energy.gov/ http://www.energy.gov/recovery/

25. STAFF CONTACTS Edinburg District Office Congressman Ruben Hinojosa 956-682-5545 tel 956-682-0141 fax Salomon Torres, District Director salomon.torres@mail.house.gov Desiree Mendez-Caltzontzint, Grants Coordinator desiree.mendez@mail.house.gov