Capital Corner: Taking Action to Tap Green Stimulus Programs

Billions of stimulus dollars are allocated for green programs, and local governments must act now to receive their share. Here’s how.

February 18, 2009
By Pam Lesser, ICLEI National Policy Analyst

On Tuesday, a new day dawned for proponents of clean energy and energy efficiency, with President Obama’s signing of the American Recovery and Reinvestment Act (ARRA) in Denver, a fitting place. ICLEI member local governments can now tap new funding to save jobs, blunt the economic crash, lower their greenhouse gas emissions, and jumpstart the clean energy economy.

ICLEI USA and Climate Communities are working hard to ensure that local governments have the information they need to take advantage of this incredible influx of federal funding, which includes more than $45 billion in new spending and tax breaks for energy efficiency and renewable energy programs. Over the coming weeks, visit ICLEI’s Stimulus Funding page for regular updates on programs and application processes.

The following preliminary list outlines the main programs and how local governments can access them.

Energy Efficiency and Conservation Block Grant (EECBG)

The EECBG received a total of $3.2 billion in funding, with $2.8 billion to be distributed by formula to states, eligible local governments, and Indian tribes. Eligible cities include those with a population of 35,000 or greater or a population that causes the city to be one of the 10 highest populated cities of the state in which it is located. Eligible counties include those with a population of at least 200,000 or a population that causes the county to be one of the 10 highest-populated counties of the state in which it is located. The remaining $400 million will be distributed via competitive energy grants administered by the Office of Energy Efficiency and Renewable Energy (EERE) of the DOE.

Flexibility in the use of funds is one of the hallmarks of the EECBG. The parameters include any type of program that contributes to the reduction of fossil fuel emissions and/or total energy use, as well as programs that improve energy efficiency in the transportation sector, building sector and other appropriate sectors. DOE will provide 68 percent of the total amount in direct formula funding to eligible cities and counties; 28 percent to the states, of which 60 percent must be passed through to cities and counties not eligible for direct formula funding; 2 percent will be allocated in the form of competitive grants to cities and counties not eligible for direct funding; and Indian tribes will receive the remaining 2 percent of funding.

How to access funding: Each eligible grant recipient must become familiar with FedConnect, the mechanism for applying for the EECBG Program. The web link for submitting applications through FedConnect is: https://www.fedconnect.net/FedConnect/PublicPages/FedConnect_Ready_Set_Go.pdf.
Before submitting an application through FedConnect, each organization must complete the following steps:

• Step 1: Request a DUNS Number at http://fedgov.dnb.com/webform/displayHomePage.do
• Step 2: Register with the Central Contractor Registry (CCR) at http://www.ccr.gov/
• Step 3: E-Business Point of Contact must register in FedConnect at https://www.fedconnect.net/FedConnect/
• Allow 21 days to complete the registration process. For more information, visit http://www.eere.energy.gov/informationcenter/.

Weatherization Assistance Program (WAP)

The WAP received $5 billion for the installation of energy efficiency measures in low-income households. Expansion of this program can help local governments reduce their community-wide greenhouse gas emissions, so it will be important to get the word out to community members.

People automatically eligible for funding include those receiving Supplemental Security Income or Aid to Families with Dependent Children. Usually those over 60 years of age, families with one or more members with a disability, and families with children also qualify. Distribution of funds is based on income level, and ARRA enables more people to qualify by increasing the maximum income from 150 to 200 percent of the poverty level as well as increasing the amount that can be spent weatherizing each home from $3,055 to $6,500.

How to access funding: Weatherization services are provided directly by the states with the actual installation of energy efficiency components handled by local weatherization agencies. The states, not DOE, keep updated lists of local weatherization agencies. Encourage community members to apply! To apply, they must first call the local agency, which may be a nonprofit or a branch of local government. They must apply at the office, which is estimated to take approximately 20 minutes, and bring proof of income for the year prior to application. If they are eligible, the weatherization agency places them on a waiting list for an initial professional energy consultation and then schedules workers to install the needed features in their home. For more information, visit http://apps1.eere.energy.gov/weatherization/apply.cfm.

State Energy Programs

State Energy Programs will enjoy $3.1 billion of funding to further renewable energy and energy efficiency technologies. States can use the money for a broad range of activities that include preparation and implementation of their own state energy plans, as well as providing money to local governments for local renewable and efficiency projects.

How to access funding: The State Energy Program provides grants to states and directs funding to state energy offices from technology programs in DOE’s Office of Energy Efficiency and Renewable Energy. Grants are awarded both by formula (one-third equally among all states and territories, one-third according to population, and one-third according to energy consumption) as well as competitively for special projects. There is a matching requirement for formula grants in that states must contribute their own funds worth 20 percent of the DOE grant. States often leverage funding from the State Energy Program with other sources of monies, both government-based and private entities.  Communities should contact their state energy offices for guidance on accessing the additional stimulus dollars appropriated for this program. For more information, visit http://apps1.eere.energy.gov/state_energy_program/.

Alternative Fuel Vehicles Pilot Grant Program (DOE Clean Cities Program)

The Clean Cities Program received $300 million, which will help acquire motor vehicles with a higher fuel economy, including hybrid vehicles, electric vehicles, commercially available plug-in hybrid vehicles and the necessary infrastructure. A total of 30 grants, based on geography, will be awarded on a competitive basis. Eligible recipients include states, local governments, metropolitan transportation authorities, air pollution control districts, and private or nonprofit enterprises. It should be noted the $300 million is only available until September 30, 2011.

How to access funding: For more information on the grant application process, visit  http://www1.eere.energy.gov/cleancities/.

EPA and Department of Labor Green Funding Opportunities

The EPA has received $300 million to implement the Diesel Emission Reduction Act, and the Department of Labor has received $750 million for a program of competitive grants for worker training and placement in high growth and emerging industry sectors.  Of that $750 million, approximately $500 million is to be made available for job training projects that prepare workers for careers in energy efficiency and renewable energy.   Funds are available through June 30, 2010.

How to access funding: For EPA’s Diesel Emission Reduction Act, funding comes in the form of both grants and loans. Seventy percent of the available funds will be distributed as grants and low-cost revolving loans to eligible entities, which include regional and local governments. To receive a grant or loan, eligible entities must submit an application that includes a description of the air quality of the area; the quantity of air pollution produced by the diesel fleets in the area; a description of the project, including any certified engine configurations, verified technologies or emerging technologies used; an evaluation of the quantifiable and unquantifiable benefits of the emissions reductions; an estimate of the cost; a description of the age and expected remaining lifetime of the vehicle/equipment, a description of the fuel used, including the sulfur content, provisions for monitoring the project and other requirements deemed appropriate by EPA. In addition, 30 percent of the funds will be used to support state-level grants and low-cost revolving loans on a competitive basis.

Guidelines for accessing funding for the Department of Labor’s program have not yet been issued but are expected soon.  For more information, visit http://www.doleta.gov/grants.

Transportation Electrification

Four hundred million dollars is included for transportation electrification. This will be distributed as grants that either encourage the use of plug-in electric drive vehicles or for projects that implement electric transportation technologies that would significantly reduce greenhouse gas emissions and the use of petroleum. Funding would go directly to either states, local governments, air pollution control districts, metropolitan transportation authorities, or non-profits; however, a minimum of one-third of the funding must go to local governments.

How to access funding: The actual allocation process has not yet been determined. Stay tuned for more details from ICLEI.

Other Programs: Energy Efficient Buildings and Advanced Battery Manufacturing Grants

While not directly applicable to local governments, please note that $4.5 billion has been appropriated to green federal buildings, specifically to modernize them and install energy efficiency upgrades. In addition, $2 billion in grants is available to support the manufacturing of advanced batteries, including awards to facilities that manufacture advanced battery systems and vehicle batteries produced in the U.S., including advance lithium ion batteries, hybrid, electrical systems, component manufacturers and software designers.