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					   State Energy Office Workshop on the Upcoming Energy Efficiency and Conservation
                                Block Grant Program

On Tuesday, July 21, the State of Michigan Energy Office held a workshop in Gaylord to
educate units of local government about the upcoming Energy Efficiency and Conservation
Block Grant (EECBG) Program.

The State will receive American Recovery and Reinvestment Act money in August to subgrant
to small, non-entitlement communities (i.e. communities that will not receive EECBG formula
funding directly from the U.S. Department of Energy). The State expects to issue Requests for
Proposals (RFP) from units of local government in late August/early September. Because the
funding source for the State program is “stimulus” money, the turnaround on applications will be
quick—likely 30 days. In addition, the State wants to encourage communities to prepare for the
RFP now because (a) projects must be shovel-ready, and (b) proposals should emphasize multi-
jurisdictional collaboration.

The event in Gaylord on Tuesday provided information about the program guidelines, timeline,
funding amounts, and strategy suggestions. Below are notes from the workshop. All workshop
materials will eventually be available on the State Energy Office website at

State Energy Office Contacts:

Jan Patrick, MI Energy Office

Tim Shireman, EECBG Project Staff


Federally-stated Purpose:
Reduce fossil fuel use, reduce total energy use, increase energy efficiency in building,
transportation, and other sectors.

State goals:
Broaden education and awareness of energy efficiency and conservation; initiate cost effective
energy efficient upgrades in 900 local government buildings (up to 10% may include renewable
energy); provide 20-40 LED demonstration projects (~$2 million set aside for LED; available to
all units of local government-both entitlement and non).

All units of local government in NW MI. (All communities in our area are non-entitlement.)
Approximately 1750 jurisdictions across the state are eligible – very competitive program!
The State Energy Office anticipates awarding 115 grants. Remember, the goal is to do upgrades
at 900 government buildings—collaboration is vital to success.

    Late August/early Sept – State RFP released (30 day application period)
    October: The state awards grants to half of its highest ranked proposals; they will notify
       the other half that they’ve been tentatively selected for a later award. (State will only
       receive 50% of ARRA funds; once 60% have been obligated and progress has been
       made, other 50% of funds will be awarded in approximately March.)
    March: tentatively selected applicants may need to update proposals and resubmit

Project period: 12 months

Funding Distribution:
    $15.48 million (79%) non-entitlement, multi-purpose program (i.e. the 13 activities listed
      in EECBG legislation)
    $1.96 million (10%) LED grants for both entitlement/non-entitlement
    $196,000 (1%) for nonprofits to provide TA to local gov’t (to be competitively bid to
      offer services on regional or statewide basis; will also assist state in providing local
      governments with program implementation; RFP will be available after the non-
      entitlement communities’ EECBG RFP)
    $1.96 million (10% set aside for state program administration)

General Requirements:
    National Environmental Policy Act (NEPA) questionnaire for each project site or activity
      proposed. (Start working on this now! Required to submit along with application, which
      may be due as early as late September!)
    State Historic Preservation Office (SHPO) review required for building-related projects.
      (State Energy Office will give your project information to SHPO after you submit your
      application. If you can get SHPO approval before submittal, that’s helpful, but not
    ARRA Requirements: Prevailing Wages; Buy American Provision.

Improve your odds!:
    Draft proposal now—collect costs and savings estimates
    Identify Collaborators
    Leverage funding sources and secure commitments (letters)
    Secure permits as needed; complete NEPA questionnaire for every site.

Leveraged Funds:
    Non-entitlement communities are not required to provide cost share or local match.
      However, points will be given to proposals that do leverage funding.
      Proposals should include discussion of strategy for attracting resources for long-term
       activities (does not have to be cash; can be change in operational policy, volunteer
       support, in-kind, public or private funds, etc.).

Examples of Leveraged Funds:
    Performance contracting; use EECBG to buy down the contract length or add energy
      efficiency/conservation measures for greater cost savings and related benefits
    Bulk purchasing policies for green alternatives
    Create revolving loan fund to support energy efficient improvements in municipal or
      other community buildings (This option is challenging because you have to loan out all
      funds and receive payback within grant period of one-year; therefore, you need to
      implement quick payback improvements. Once all money is loaned out and returned, the
      funds are yours, meaning the requirements of the grant no longer apply. However, only
      20% of total project cost can be used for revolving loan fund, so the amount of money
      will be small.)

Michigan Leveraging Opportunities:
    Michigan Municipal League (MML) Green Communities Challenge
    Utility Energy Optimization Programs required through new RPS law
    Low-Income Energy Efficiency Fund Programs (administered by Michigan Public
      Service Commission)
    Upcoming “Michigan Saves” Program: Contact Amy Rittenhouse at Public Sector
      Consultants because they are seeking pilot projects.

Example: Michigan Green Communities Challenge (MML/State Energy Office collaboration):
    The Challenge is open to every unit and not just MML members
    Participation in the Challenge indicates to the State that you’re concerned about overall
      energy efficiency/conservation for the state for the long-term (beyond term of grant)—
      consider adding your intent to participate in the Challenge to your EECBG application.
    Information is available at
    The Challenge started as part of the “Center for 21st Century Communities (21c3)”
      Initiative—Look for the 21c3 and the Green Initiatives section on the website.

Green Communities Challenge is 6 step program:
1. Obtain organizational support (resolution required for enrollment in program—complete this
    before EECBG application; sample resolution available)
2. Assign responsibility (complete intent and progress survey online; ICLEI resources available
    for energy office establishment, but not required)
3. Collect energy data for government operations (The Rebuild Michigan Program through the
    State Energy Office will put your buildings on the Energy Star Portfolio Manager for free;
    you can also do this for free.) Start collecting this information now so that you can make
    informed decisions about improvements in your application.
4. Assess situation and identify gaps
5. Develop goals and activities
6. Measure performance and quantify results
EECBG Proposal Development Guidelines

Two Types of Grants Available:
   Multi-purpose grants: 13 project activities allowable under EECBG legislation; open to
      non-entitlement applicants only.
   LED Demonstration Grants: all units may apply.

   -   Can submit proposals for both grants, but two separate applications will be required.
   -   Can submit as single or multi-jurisdictional entity for either grant type
   -   Jurisdictions can apply for each grant type only once (i.e. you cannot submit a single
       jurisdiction application and be a part of a multi-jurisdictional grant for the same grant

Multi-purpose Grant

Eligible Activities (applications may include more than one activity)
- develop energy efficiency strategy/hire consultant to develop
- Residential/commercial building audits
- Financial incentive programs for energy improvements (i.e. revolving loan)
- Re-grant for energy efficient building retrofits to nonprofits and government agencies
- Energy Efficiency/Conservation programs for buildings and facilities (i.e. partner with
    entities implementing weatherization to reach lowest income, hospitals, schools, etc.)
- Develop/implement energy efficient transportation programs (e.g., bike paths, synchronized
    traffic lights, fuel efficient fleets.)
- Train building code officials on state energy codes
- Energy efficient distribution technologies
- Material conservation programs
- Reduce, capture, use methane and greenhouse gases generated by landfills
- Renewable energy technology for gov’t buildings

Resource: (DOE Solution Center)

Collaboration Strategy:
Grant applications will be looked at as a whole; State Energy Office will not pick and choose
projects from within an application. All projects included in the application must be high quality.
Integrated proposals (that follow one or more programmatic themes listed above in “Eligible
Activities”) will score better than shopping lists of projects.

Grant Amounts:
Funding levels will be pro-rated by population. Below are some examples of funding amounts.
Refer to the State Energy Office website and RFP for more information.

Grant amounts for cities and townships:
Population                                         Grant Amount
0-5,000                                            $50,000 (minimum)
9,500                                              $70,000
14,000                                             $85,000
19,000                                             $100,000
24,000                                             $115,000
34,999                                             $140,000

Grant Amounts for Counties:
Population                                         Grant Amount
5,000-10,000                                       $50,000-$75,000
25,000                                             $120,000
45,000                                             $175,000
100,000                                            $400,000

Grant Amounts for Multi-Jurisdictional Projects:
Population of Total Area                           Grant Amount
30,000                                             $130,000
50,000                                             $200,000
100,000                                            $400,000
135,000                                            $540,000
163,000                                            $650,000

In the application, provide your population estimate source. (Recommended to use 2007 Census

Populations do not include entitlement tribal communities= must subtract from estimate.

Limitations on Funding:
    Only 10% of multi-purpose grant budget may be used for admin
    Only 20% of funds can be used for revolving loan

LED Demonstration Grant
- street lighting
- traffic signals
- parking structures/lots
- indoor lighting
Required component= public information/education/demonstration (education event to learn
about new technologies in LED)

Funding levels:
    $50,000-$250,000 (will have different funding levels for entitlement/non-entitlement)
    Grants will cover up to 90% of equipment cost--cost share is required for 10% of
      equipment and all labor, training, admin, educational costs.
    Buy American provisions may apply.
Multi-Purpose and LED Demonstration Grants Requirements

Selection Criteria:
- energy savings and cost effectiveness
- job creation and retention (temporary OK)
- reduction of greenhouse gases
- strength of project/program management and implementation plans.
- Is the project shovel-ready (State Energy Office must demonstrate progress in order to
    receive the rest of the federal ARRA dollars)
- Leveraging additional dollars (not required for multi-purpose grants, but highly
    recommended for extra points)

Reporting Requirements – Federal (quarterly)
- jobs created or retained
- energy savings on a per dollar invested basis
- renewable energy capacity installed, if applicable
- greenhouse gas emissions reduced
- funds leveraged

Reporting Requirements – State (quarterly)
- work accomplished
- work planned
- real/anticipated problems
- significant changes to project
- grant expenses and leverage contributions (submit invoice; no advance)
- Final report – summary of project goals and activities, outcomes and final grant payment
   request. (15% hold back on grant funds until final report approved)

Submitting Proposals
- mailed or hand delivered
- one original + 3 copies
- Must be received by due date and time
- No electronic application or submittal

RFP Release
- There will be a combined RFP for both grant types (i.e. Multi-Purpose and LED
   Demonstration); RFP will indicate requirements for each
- RFP will be posted on Energy Office website
- Q&A period for 2 weeks after RFP issued; posted on website
- Proposals due within 30 days
- Proposal review period is 30 days
- Award announcement 30-45 days after due date

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