Presentation to the PUBLIC UTILITY COMMISSION June 30, 2010 Presented by: Lisa Elledge

1. Presentation to the PUBLIC UTILITY COMMISSION June 30, 2010 Presented by: Lisa Elledge Stimulus Program Manager State Energy Conservation Office Texas Comptroller of Public Accounts

2. ARRA Energy Conservation Funding • The U.S. Department of Energy (DOE) provided ARRA funding to the State Energy Conservation Office (SECO) for four programs: • State Energy Program - $218,782,000 • Energy Efficiency and Conservation Block Grants - $45,638,100 • Energy Efficient Appliance Rebate Program - $23,341,000 • Energy Assurance Program - $2,432,068 Total Funding to SECO $290,193,168

3. State Energy Program • SECO $218,782,000 • The State Energy Program (SEP) provides federal grants to states and directs funding to state energy offices from DOE’s Office of Energy Efficiency and Renewable Energy for energy efficiency and renewable energy projects. • Program Areas • Building Efficiency and Retrofit Program • Distributed Renewable Energy Technology Program • Transportation Efficiency Program • Energy Sector Training Centers • Public Education and Outreach • Legal Authority • Federal Regulations: 10 CFR, Part 420

4. State Energy Program • Program Status • DOE approved SECO’s SEP application July 10, 2009 • Request for Applications have been issued throughout the Fall of 2009 and the Spring of 2010 • Awards have been made for all program areas • SEP funds must be spent by April 2012

5. State Energy Program • Building Efficiency and Retrofit Program • $134 million Revolving Loan Program • $10 million cap; 2% interest; 10-year payback • Request for Applications • Two rounds of request for applications were issued • Round I closed December 30, 2009 • Round II closed April 22, 2010 • Awards • 19 projects awarded

6. State Energy Program • Distributed Renewable Energy Technology Program • $52 million Competitive Grant Program • $2 million cap; 20% match requirement • Renewable energy projects may include: • Biomass • Geothermal • Solar • Water (Hydro) • Wind Awards • 47 projects awarded • National Environmental Policy Act (NEPA) review by DOE prior to contract

7. State Energy Program • Transportation Efficiency Program • $17 million Competitive Grant Program • Two programs • Alternative Fuels • Incremental costs for vehicle purchases • Refueling infrastructure (Equipment only) • Traffic Synchronization/LED • Signal Synchronization • Signal light replacement with LEDs Awards • Alternative Fuels Project ($9.1 million) • 12 projects awarded • Traffic Signal Synchronization/LED Project ($7.8 million) • 16 projects awarded

8. State Energy Program • Energy Sector Training Centers • $6 million Competitive Grant Program • Community Colleges/Technical Institutes • Provide funding for equipment to train workers in energy efficiency and renewable energy fields Awards • 17 projects awarded

9. State Energy Program • Public Education and Outreach • $5 million • Statewide consumer education campaign, including promotion of current programs • Web based applications • New statewide energy efficiency site has been launched: www.TexasPowerfulSmart.org • Interactive resources • Efficiency tools • Texas-based calculators • Interactive twitter account with over 1,895 followers • Countdown to Summer Campaign • Eureka! Grant Program

10. Energy Efficiency and Conservation Block Grant Program • TEXAS TOTAL $208,759,900 • The Energy Efficient and Conservation Block (EECBG) Program provides funds to units of local and state government, Indian tribes, and territories to develop and implement projects to improve energy efficiency and reduce energy use and fossil fuel emissions in their communities. • Entitlement Cities and Counties $163,121,800 • (Cities over 35,000/Counties over 200,000 receiving a direct allocation) • SECO $45,638,100 • (Cities under 35,000/Counties under 200,000) • Legal Authority • Federal Law: Energy Independence and Security Act of 2007, Subtitle E, Sections 541-548

11. Energy Efficiency and Conservation Block Grant Program • Texas Program • SECO will redistribute its $45,638,100, less administrative costs, to non-entitlement cities and counties in Texas (1,127 cities and 244 counties) based on population. • Eligible Entities: 1,371 cities (1,127) and counties (244) • Participating Entities: 1,061 cities (839) and counties (222) • Use of Funds • Building energy audits and retrofits • Installation of distributed energy technologies including combined heat and power and district heating and cooling systems • Installation of energy-efficient traffic signals and street lighting • Installation of renewable energy generation technologies on government buildings

12. Energy Efficiency and Conservation Block Grant Program • Program Status • DOE approved the EECBG program for Texas September 14, 2009 • SECO received formal approval from DOE for its proposed sub-grants, meeting its March 14, 2010 obligation deadline • Contracts were issued to participating entities by June 25, 2010 • EECBG funds must be spent by September 2012

13. State Energy Efficient Appliance Rebate Program • SECO $23,341,000 • Congress appropriated $300 million nationwide to support state rebate programs for residential ENERGY STAR appliances. • Texas will use approximately $23 million in federal stimulus funds for a mail-in rebate program for residential consumers who purchase certain energy efficient household appliances. • Legal Authority: • Federal Code: Energy Policy Act of 2005, Subtitle B, Section 124 (42 USC 15821)

14. Energy Efficient Appliance Rebate Program • Program Status • Texas received approval from DOE December 11, 2009 • Purchase dates April 16 to May 9, 2010 • Central A/C, Heat Pumps and Water Heaters purchase and install through June 15, 2010 • June 15, 2010 deadline to submit (postmark) rebate application forms • SEEARP funds must be spent by February 2012

15. Energy Efficient Appliance Rebate Program • Eligible Appliances in Texas • Air Source Heat Pumps • Central Air Conditioners • Clothes Washers • Dishwashers • Freezers • Water Heaters • Refrigerators • Room Air Conditioners

16. Energy Assurance Program • SECO $2,432,068 • The Energy Assurance Program (EA) will provide funding to update the State of Texas Emergency Management Plan. • The updated Emergency Management Plan and newly implemented policies will strengthen and expand state and local government energy assurance planning and resiliency efforts by incorporating response actions for new energy portfolios and Smart Grid applications; and build in-house state and local government energy assurance expertise. • Program Status • DOE approval was received on August 11, 2009 • SECO is partnering with the Public Utilities Commission (PUC) and the Railroad Commission (RRC) for this program • Interagency agreements between the Comptroller's Office and the PUC and the RRC were executed by November 4, 2009 • EA funds must be spent by August 2012 • Legal Authority • Federal Code: Energy Policy Act of 2005, Subtitle B, Section 124 (42 USC 15821)

17. Websites SECO Stimulus Webpage www.secostimulus.org Comptroller Texas Recovery Webpage www.window.state.tx.us/recovery/ Consumer Site www.texaspowerfulsmart.org

18. Questions? • Lisa Elledge • State Energy Conservation Office • Texas Comptroller of Public Accounts • _______________________________ • lisa.elledge@cpa.state.tx.us • (512) 463-7392