USE OF FUNDS
U. S. Department of Energy ( DOE): The DOE will be developing the specific rules and criteria for the SEP and will oversee the distribution of the funds to each state. To obtain the SEP Funds, the Secretary of Energy must receive assurances from the governor indicating:
The state will adopt a policy ensuring that a utility company's financial incentives are aligned with helping their customers use energy more efficiently. At the same time, the policy will provide timely cost recovery and earnings opportunity (for the utilities) associated with cost-effective efficiency savings.
The state will implement a plan for achieving compliance in at least 90 percent of all newly constructed buildings and additions and alterations to existing buildings with aggressive state building energy codes that meet or exceed the 2009 International Energy Conservation Code for residential buildings and ANSI/ ASHRAE/IESNA Standard 90.1-2007 for commercial buildings. (Note: California's 2008 Building Energy Efficiency Standards - Title 24, Part 6 - are the Standards for which this 90 percent compliance rate must be achieved.)
The ARRA directs states to prioritize the use of SEP funds for expansion of existing energy efficiency and renewable energy programs approved by the state or appropriate regulatory authority. Upon approval from the DOE, the CEC plans to implement activities that fall within the following categories:
SEP 2: California Comprehensive Residential Building Retrofit Program
SEP 3: Municipal and Commercial Building Targeted Measure Retrofit Program
SEP 4: Low Interest Energy Efficiency Financing Program
The Department of Energy’s ( DOE) State Energy Program ( SEP) provides funding to states to construct and carry out their own renewable energy and energy efficiency programs. Traditionally, SEP appropriations to California have totalled $1-3 million annually. However, for Fiscal Year 2009, the ARRA provides funding to the SEP at $3.1 billion nationally, The California Energy Commission ( CEC) will award $95 million for SEP 1, 2 and 3 applications, and $25 million for SEP 4 applications.
On October 1, the CEC released three funding solicitations for eligible SEP 1, 2 and 3 projects. The funding solicitations specify the types of entities eligible to apply for funding, including cities, counties, or groups of cities and counties in California as well as public, nonprofit or private organizations. For SEP 4 “Low Interest Energy Efficiency Financing Program”, the CEC will provide 1-3% interest loans to energy efficiency and renewable energy retrofits to cities, counties, special districts, public schools and colleges, public hospitals and public care institutions. Applications are due to the CEC by November 30, 2009.
For more information visit: http://www.energy.ca.gov/recovery/sep.html