Overview of Funding for Energy Programs
Overview of Funding for Energy Programs
Funding in the American Recovery and Reinvestment Act will be primarily distributed through state agencies that have established programs for distribution. Below is a list of energy programs with contact information and funding that Hawai`i is expected to receive.
Check back periodically for updates.
LAST UPDATED: Thursday, 3/12/09 3:48 PM
State Energy Program
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Purpose | Notes | Implications/Plan | Funding/Cognizant State Office/Point of Contact | |
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State Energy Program |
To promote energy conservation and reduce energy demand through the development and implementation of Hawai`i’s Clean Energy Initiative |
Notes: Governor to submit the following plan to the Secretary of Energy: -Decoupling of utility revenue from utility sales; -State building codes at latest IECC/ANSI/ASHRAE/IESNA 90.1-2007; and -Expanding existing programs for efficiency and renewable generation. |
Implications: Funding to drive strategic change across a broad set of energy objectives. Plan: Developing prioritized list of projects, including EIS for undersea cable; renewable energy solicitation; planning to execute in phases. |
$25.93 million Cognizant State office: State Energy Office, DBEDT Point of Contact: http://hawaii.gov/dbedt/ |
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Weatherization Assistance Program |
Improve the energy efficiency of low-income housing | Notes: WAP allows for funding energy efficiency measures including solar water heaters; funding may be used to benefit low income renters; stimulus funding available to homes at 200 percent of poverty level, limited to $6,500 per home. |
Estimated $5M Cognizant State office: Office of Community Services, DLIR Point of Contact: http://hawaii.gov/labor/ocs/http://hawaii.gov/labor/ |
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Grants to state and counties for energy efficiency and conservation activities. Funds are to improve energy efficiency in the transportation, building, or other appropriate sectors. |
Implications: Opportunity to collaborate on energy efficiency and conservation activities by state and counties. Plan: Meetings in progress with each county to plan programs. |
Funding: $3.2B overall, $2.8B formula funded, $400M competitive. Specific formula not yet published, but 68% goes to eligible counties and cities (all Hawai`i counties are eligible), 28% to states. Cognizant State office: State Energy Office, DBEDT, Counties Point of Contact: http://hawaii.gov/dbedt/ |
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Funding for Smart Appliances. |
Notes: -2008 Funding was $30M. -States can receive funding if they have a rebate program for Energy Star products. -Funding used to provide consumers with rebates to replace old appliances with Energy Star products. |
Implications: Complementary program to other efficiency programs. Plan: via Public Benefits Fund Administrator or Demand Side Management Program. |
Funding: $300M. Formula by population of eligible states. Cognizant State office: TBD Point of Contact: TBD |
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Approximately $9 billion of a $53.6B fund will be available for use by governors to address public safety and other government services. This may include school modernization, renovation, and repair consistent with a recognized green building rating system. This would not cover construction of new schools | Notes: Funds must be awarded as sub-grants or “otherwise committed” within 2 years of receipt. |
Implications: Use of funds for school modernization, renovation and repair should ensure efforts to green schools entail increased energy efficiency. Plan: In development |
Funding: $9B. Formula award from Dept of Education to states. Cognizant State office: TBD Point of Contact: TBD |
Competitive grants
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Hawai`i Energy Components of ARRA |
Purpose |
Notes |
Implications/Plan |
Funding/Cognizant State Office/Point of Contact |
|
|---|---|---|---|---|---|
|
Smart Grid Investment Program |
Modernize the electric grid, enhance security and reliability for energy infrastructure, energy storage RD&D. |
Notes: Significant opportunity for HECO companies and KIUC. |
Implications: Opportunity to buy down the cost of Smart Grid for the State of Hawaii; should be able to leverage projects in progress to date and the HCEI framework. Plan: Initiated discussions with both utilities. Expect solicitation mid-April, with responses due mid-June. |
Funding: $4.5B. Competitive grants. These monies are for utilities or other private entities with up to 50% of the cost of qualifying advanced grid technology investments for demonstration projects. Cognizant State offices: PUC, HNEI, HSEO Point of Contact: http://www.hnei.hawaii.edu/ |
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Alternative Fueled Vehicles Pilot Grant Program |
Grants to states, local governments, and metropolitan transportation authorities for up to 30 geographically dispersed advanced vehicle demonstration projects. |
Notes – Eligible project activities include: -Alternative fuel vehicles -- including electric vehicles -- light, medium, and heavy duty -Fuel cell electric and electric hybrid vehicles -- light, medium, and heavy duty -Alternative fuel off-road vehicles at airports or high fuel use equipment at ports -Acquisition and installation of fueling infrastructure -Operation and maintenance of vehicles, infrastructure, and equipment |
Implications: Hawai`i is well positioned to pursue this, as a complement to other programs. Plan: Solicitation has been issued. Responses are due May 29, 2009. |
Funding: $300M. Competitive grants. Projects must include partnerships with Clean Cities. Requires a 50% cost share. Cognizant State Office: State Energy Office, DBEDT Point of Contact: http://hawaii.gov/dbedt/ |
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Transportation Electrification |
To establish widespread demonstration, development, evaluation, and education projects to accelerate the market introduction and penetration of advanced electric drive vehicles. |
Notes -- Areas of interest: -Electric Drive Vehicle Demonstration and Evaluation -Transportation Sector Electrification -Advanced Electric Drive Vehicle Education Program |
Implications: Hawai`i is well positioned to pursue this, as a complement to other programs. Plan: Expect solicitation in March, with responses due in June. |
Funding: $400M. Competitive grants. Will require cost share. Cognizant State Office: State Energy Office, DBEDT Point of Contact: http://hawaii.gov/dbedt/ |
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Research Development, Demonstration, and Deployment |
Funding for energy efficiency and renewable energy research, development, demonstration, and deployment activities. |
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Implications: Team structure and potential return of intellectual capital likely discriminators on winning proposals. Plan: Expect solicitation mid-April, with responses due mid-June. |
Funding: $2.5B. Competitive grants. Funds are awarded to universities, companies, and national laboratories. Cognizant State office: HNEI, HSEO Point of Contact:http://www.hnei.hawaii.edu/ http://hawaii.gov/dbedt/ |
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Worker Training in High Growth and Emerging Industry Sectors |
To train workers for careers in energy efficiency and renewable energy industries, as well as worker training for other stimulus funding areas.
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Implications: Opportunity to further organize workforce development in Hawaii Plan: Coordinate proposal with Community Colleges and RE/EE industry partners. |
Funding: $750M. Competitive. No match required. Cognizant State office: SMSD Point of Contact: http://hawaii.gov/dbedt/main/about/smsd/ |
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Job Corps, Training for Careers in Energy Efficiency and Renewable Energy Industries |
Funding for Job Corps Modernization. | Notes: Limited funding to existing Job Corps Centers |
Implications: May not be worth effort in context of other opportunities Plan: Review opportunity for State of Hawai`i |
Funding: $250M. Cognizant State office: SMSD Point of Contact: http://hawaii.gov/dbedt/main/about/smsd/ |
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Electricity Delivery and Energy Reliability |
Funding for worker training activities in the ‘severe shortage’ of candidates in the area of electricity delivery and energy reliability | Notes: Discretionary by Secretary of Energy where he determines there is a ‘severe shortage’ |
mplications: Hawai`i may be able to make the case that our shortage of workers in this area is ‘severe’ Plan: Look for solicitation mid-May. |
Funding: $100M. No specified mechanism. Cognizant State office: SMSD Point of Contact: http://hawaii.gov/dbedt/main/about/smsd/ |
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Assisted Housing Stability and Energy and Green Retrofit Investments |
grants or loans for energy retrofit and “green” investments in HUD-assisted housing. | Notes: Grants and loans to be administered in a way that ensures the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds. |
Implications: “Assisted housing” refers to multifamily housing properties owned by private landlords which serve low-income tenants and receive rental assistance payments from HUD. The funds will be awarded by HUD to owners of properties assisted under the Section 8 project-based rental assistance program, the Section 202 Supportive Housing for the Elderly program, and the Section 811 Supportive Housing for Persons with Disabilities program. Plan: Work with property owners proposal for solicitation. |
Funding: $250M. Competitive grants. Cognizant State office: HHFDC (Hawai`i Housing Finance and Development Corporation) Point of Contact: http://hawaii.gov/dbedt/hhfdc |
Tax Credits
| Hawai`i Energy Components of ARRA | Purpose |
|---|---|
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Extension of Credit for Electricity Produced from Certain Renewable Sources |
Purpose: Extends the placed-in-service date for certain qualified renewable energy facilities by 3 years: -Wind facilities: through January 1, 2013; -Closed-loop biomass, open-loop biomass, geothermal, landfill gas, trash facilities, hydropower, and marine and hydrokinetic facilities: through January 1, 2014. |
| Election of Investment Credit in Lieu of Production Credit | Purpose: Offers taxpayers the opportunity to claim a 30% investment tax credit rather than production tax credits for wind, closed-loop, open-loop, geothermal, landfill gas, trash, hydropower or marine/hydrokinetic facilities that are placed in service in 2009 or 2010.’ |
| Repeal of Credit Limitations for Renewable Energy Property |
Repeals the $4,000 limitation on investment tax credits for wind turbines with a nameplate capacity of 100 kW or less. Permanently repeals provisions under which energy property is reduced by financing through proceeds from private activity bonds. |
| Removal of Dollar Limitations on Certain Energy Credits | Repeals the individual dollar caps for qualified small energy property, qualified solar water heating property, qualified geothermal heat pumps making them eligible for an uncapped thirty percent credit. |
| Tax credits for Alternative Fuel Pumps |
Increases the alternative refueling property credit for businesses that install alternative fuel pumps. For 2009 and 2010, the bill would increase the 30% alternative refueling property credit for businesses (capped at $30,000) to 50% (capped at $50,000). Hydrogen refueling pumps would remain at a 30% credit percentage, but will be increased to $200,000. In addition, the bill would increase the 30% alternative refueling property credit for individuals (capped at $1,000) to 50% (capped at $2,000). |
| Removal of Dollar Limitations on Certain Energy Credits | Repeals the individual dollar caps for qualified small energy property, qualified solar water heating property, qualified geothermal heat pumps making them eligible for an uncapped 30% credit. |
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Credit for Plug-In Electric Drive Motor Vehicles |
Provides a 10% credit (up to $2,500) for electric drive low-speed vehicles, motorcycles, and three-wheeled vehicles. Provides a 10% credit (up to $4,000) for plug-in vehicle conversions using a qualified battery module with a minimum capacity of 4 kWh. Conversions must be made before December 31, 2011. Limits the plug-in electric drive motor vehicle credit to $7,500 regardless of vehicle weight and limits the credit to 200,000 vehicles per manufacturer. |
| Substitute Grants for Energy Property | The Secretary of Treasury will provide grants to specified energy properties placed in service in 2009 or 2010, or placed in service after 2010 provided construction began in 2009 or 2010. The grant is 30% of the basis of the property for wind, closed-loop biomass, open-loop biomass, geothermal, landfill gas, trash facilities, hydropower, and marine and hydrokinetic facilities, solar properties and small wind properties. The grant is 10% of the basis of the property for any other facility. Any property that receives a grant is not eligible for production or investment tax credits. |
| Modification of Credit for Nonbusiness Energy Property |
Allows a 30% credit for the purchase of qualified energy efficiency improvements to existing homes. This includes: -Insulation materials or systems which are designed to reduce the heat loss or gain for a dwelling; -Exterior windows and doors; and -Metal or asphalt roofs with appropriate coatings. Credits are also allowed for the purchase of specific energy efficient property such as advanced main air circulating fans; qualified natural gas, propane, or oil furnaces or hot water heaters; or other qualifying energy-efficiency property. Qualifying building insulation components must meet 2009 IECC standards. The tax credit is available through December 31, 2010, with an aggregate cap of $1,500. |
Bonds & Loan Guarantees
| Hawai`i Energy Components of ARRA | Purpose | |
|---|---|---|
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Innovative Technology Loan Guarantee Program |
Loan guarantees to support innovative technologies that help avoid, reduce, or sequester air pollutants or emission of greenhouse gases that employ new and improved commercial technologies. Implications: Program applicable to current projects in development. Plan: HSEO available to assist and provide endorsement letters. Funding: $6B. Cognizant State office: HSEO Point of Contact: http://hawaii.gov/dbedt/ |
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| Increased Limitation on Issuance of New Clean Renewable Energy Bonds (CREBs) |
Increases limit for new clean renewable energy bonds by $1.6 billion (to total $2.4 billion). Applies to bonds in which 100% of project proceeds are used for capital expenditures incurred by governmental bodies, public power providers, or cooperative electric companies for one or more qualified renewable energy facilities. Allocations are as follows: -No more than 1/3 to qualified projects of public power providers; -No more than 1/3 to qualified projects of governmental bodies (including states); and -No more than 1/3 to qualified projects of cooperative electric companies. |
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| Increased Limitation and Expansion of Qualified Energy Conservation Bonds |
Increases limit for new qualified energy conservation bonds by $2.4 billion (to total $3.2 billion). Allocated by the Secretary of the Treasury such that: -100% of the available project proceeds are to be used for one or more qualified conservation purposes; -The bond is issued by a state or local government; and -The issuer designates such bonds for qualified conservation purposes. States must allocate funds to large local governments (populations of 100,000 or more). Funds allocated to “large local governments” may be reallocated to the state by the local government. At least 70% of allocations to state and local governments must be used to designate bonds which are NOT private activity bonds. Any bond used for the purpose of providing grants, loans or other repayment mechanisms for capital expenditures to implement green community programs is not treated as a private activity bond. Enables states to issue these tax credit bonds to finance retrofits of existing private buildings through loans and/or grants to individual homeowners or businesses or through other repayment mechanisms. Qualified conservation purposes include: -Capital expenditures or loans and grants for capital expenditures incurred for – 1. Reducing energy consumption in publicly-owned buildings by at least 20%; 2. Implementing green community programs; 3. Rural development involving the production of electricity from renewable energy resources; or 4. Any qualified facility. -Expenditures with respect to research facilities, and research grants, to support research in: 1. Development of cellulosic ethanol or non-fossil fuels; 2. Technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels; 3. Increasing the efficiency of existing technologies producing fossil fuels; 4. Automobile battery and other technologies to reduce fossil fuel consumption in transportation; and 5. Technologies to reduce energy use in buildings. -Mass commuting and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting. -Demonstration projects designed to promote the commercialization of – 1. Green building technology; 2. Conversion of agricultural waste for use in the production of fuel or otherwise; 3. Advanced battery manufacturing technologies; 4. Technologies to reduce peak use of electricity; or 5. Public education campaigns to promote energy efficiency. |
Recovery.gov
