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2008 SEP Update Booklet.pub

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					State Energy Program
         and
   Activity Update
     Winter 2008




  National Association of State Energy Officials
               1414 Prince Street
                    Suite 200
             Alexandria, VA 22314
  Telephone: 703.299.8800 Fax: 703.299.6208
          Website: www.naseo.org
                                                                                                                            Page 3



TABLE OF CONTENTS


ALABAMA .......................................................................................................... 7

ALASKA ............................................................................................................. 9

ARIZONA ........................................................................................................... 15

ARKANSAS........................................................................................................ 19

CALIFORNIA...................................................................................................... 23

COLORADO....................................................................................................... 25

DELAWARE ....................................................................................................... 29

DISTRICT OF COLUMBIA ................................................................................. 33

FLORIDA............................................................................................................ 35

GEORGIA .......................................................................................................... 39

GUAM ................................................................................................................ 43

HAWAII .............................................................................................................. 45

IDAHO ................................................................................................................ 49

ILLINOIS ............................................................................................................ 51

INDIANA............................................................................................................. 53
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TABLE OF CONTENTS


IOWA.................................................................................................................. 57

KANSAS............................................................................................................. 61

KENTUCKY........................................................................................................ 65

LOUISIANA ........................................................................................................ 69

MAINE ................................................................................................................ 75

MARYLAND ....................................................................................................... 79

MASSACHUSETTS ........................................................................................... 81

MICHIGAN ......................................................................................................... 87

MINNESOTA ...................................................................................................... 89

MISSISSIPPI ...................................................................................................... 91

MISSOURI ......................................................................................................... 93

MONTANA ......................................................................................................... 95

NEBRASKA........................................................................................................ 99

NEVADA ............................................................................................................ 101

NEW HAMPSHIRE ............................................................................................ 103
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TABLE OF CONTENTS


NEW JERSEY .................................................................................................... 105

NEW MEXICO.................................................................................................... 107

NEW YORK........................................................................................................ 111

NORTH CAROLINA ........................................................................................... 115

NORTH DAKOTA ............................................................................................... 119

NORTHERN MARIANAS ISLANDS ................................................................... 121

OHIO .................................................................................................................. 123

OKLAHOMA ....................................................................................................... 127

OREGON ........................................................................................................... 129

PENNSYLVANIA ................................................................................................ 133

PUERTO RICO .................................................................................................. 135

SOUTH CAROLINA ........................................................................................... 141

SOUTH DAKOTA ............................................................................................... 143

TENNESSEE ..................................................................................................... 145

TEXAS ............................................................................................................... 147
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TABLE OF CONTENTS


UTAH ................................................................................................................. 149

VERMONT ......................................................................................................... 151

VIRGINIA ........................................................................................................... 153

VIRGIN ISLANDS .............................................................................................. 157

WASHINGTON .................................................................................................. 161

WEST VIRGINIA ................................................................................................ 163

WISCONSIN ...................................................................................................... 165

WYOMING ......................................................................................................... 169
Page 7



ALABAMA

Alabama Department of Economic and Community Affairs
Energy, Weatherization and Technology Division
401 Adams Avenue
P.O. Box 5690
Montgomery, AL 36103-5690
Phone: 334.242.5290 Fax: 334.242.0552
Website: http://www.adeca.state.al.us


The U.S. Department of Energy - State Energy Program (SEP) is implemented by the Alabama Department of Economic
and Community Affairs - Energy Weatherization and Technology (ADECA-EWT) Division, which serves as the State
energy office. The SEP leverages additional funds to produce a wide array of energy efficiency and renewable programs
focused on reducing energy consumption, increasing energy efficiency, reducing the use of fossil fuels and protecting the
environment. Examples of State Energy Program activities in Alabama:

Alternative Transportation Fuels Program—Encourages and promotes the use of alternative transportation fuels
as a way to increase the overall efficiency of the transportation system, improve air quality, and promote energy
independence. An extensive network of alternative fuel stakeholders has been established and is working to accelerate
the availability and use of alternative fuels, especially renewable fuels such as biodiesel and ethanol. Ongoing Clean
Corridor projects will provide public access to these fuels along Interstate 65 and Appalachian Development Corridors X
and V.

Agriculture Energy Program—Promotes cutting edge renewable energy and energy efficiency technologies to the
farming community by funding demonstration projects involving energy crops, biofuels, renewable heat and power
sources, and energy efficiency improvements. The annual Agriculture Energy Conference disseminates project
information and other innovative technologies that can make a major impact on the energy efficiency and profitability of
agricultural operations. This year, the program supported energy awareness workshops for farmers and on-farm energy
audit training sessions across the state. Six audits performed through this program identified the potential for farmers to
realize a net savings of 251,000 kWh annually and over 34,000 gallons of propane savings annually, for a potential energy
savings of over 4 billion Btu per year.

Biomass Energy Program—39 projects ongoing or completed are saving industry in Alabama over $15 million
annually in energy costs. The program provides up to $75,000 per project in interest subsidy payments on loans to fund
the installation of biomass combustion and co-generation equipment. Through this program over 350,000 tons of wood
waste is diverted from landfills to be used to produce energy.

ENERGY STAR® has designated over 520 homes in Alabama as ENERGY STAR homes since ADECA-EWT
became an ENERGY STAR partner in December 2002. Through Alabama’s EnergyKey Homes program, many more
builders in the state are partnering with ENERGY STAR and learning how to build homes that are more energy-efficient.
ADECA-EWT consumer education efforts promoting the ENERGY STAR label have considerably increased the purchase
of ENERGY STAR products in the state, especially appliances and lighting products. ADECA-EWT works with local
governments and K-12 school systems to encourage energy efficiency through the ENERGY STAR monitor power
management program. Thirty-two local governments and school systems in Alabama have implemented monitor power
management on over 8,500 computer monitors, saving more than $263,000 in energy costs.

School Retrofit Program—Has provided $180,000 in energy-efficiency improvements to thirteen schools, saving
over $50,000 in energy costs each year. The program promotes energy conservation and efficiency while helping to
reduce the energy costs at K-12 public schools in distressed counties of Alabama. In addition to saving energy, the
program is providing a better learning environment for students.
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ALABAMA

Rural Water Program—$1.7 million in energy costs saved annually through system leak detection, repair and
prevention. During the last fiscal year, $1,679,772 in water costs and 1,069,360,000 gallons were saved. In addition,
$96,242 in energy costs to move water through the systems was saved. Twenty-four leak detection surveys were
conducted and 68 water operators received training in leak detection techniques.

State Buildings Energy Efficiency Program—Estimated to save $5 million per year in utility costs for state
buildings in the next few years. In May of 2006 the Governor signed an Executive Order requiring each state agency to
reduce their energy consumption by 10 percent by fiscal year 2008. Three state agencies are pursuing performance
contracts that will result in approximately $1,500,000 or 40 percent in energy savings annually. Ongoing energy usage
management training and technical assistance for state agency Energy Officers is provided.

Recycling Program—Has produced energy savings of over $5 million, recycled over 9 million gallons of oil, and
diverted 1,000 tons of recyclable materials from landfills in Alabama since 2004. This program has promoted the
start-up and expansion of recycling programs in local municipalities. An electronics recycling demonstration project is
underway in the current fiscal year. The program saves energy, benefits the environment and conserves natural
resources.

                              State Energy Program (SEP) - U.S. Department of Energy

                   Fiscal Year 2002 to 2006 Federal Funds Awarded and State Cost Share—Alabama

                          Federal SEP Grant          Federal Share          Total State Match          State Share

                Totals        $3,348,000                  75%                   $787,576                   24%
Page 9



ALASKA

Alaska Housing Finance Corporation
4300 Boniface Parkway
P.O. Box 101020
Anchorage, AK 99510-1020
Phone: 907.330.6100
Fax: 907.338.1747
Website: http://www.ahfc.state.ak.us/energy/energy


Alaska Housing Finance Corporation is designated as the State energy office for Alaska. It is the recipient of federal
money for all energy efficiency and renewable energy programs for the state. In FY 2006,the State Energy Program
received $316,800 in federal funding, while the Weatherization Assistance Program received $1.8 million. AHFC puts in
excess of 10 million dollars into energy efficiency programs each year in addition to federal funding. Even with that level of
funding, energy costs in Alaska are spiraling out of control, and villages are forced to shut down power generators, cut
power to water and sewer services and residents are forced into heat or eat choices, because of heating fuel and diesel
costs ranging from $4-7 per gallon in rural areas.

Alaska Building Energy Efficiency Standard (BEES)
Meeting the Alaska Building Energy Efficiency Standard (BEES) is required for all new residential homes and community-
owned buildings receiving AHFC financing. AHFC is responsible for BEES, provides technical assistance and maintains a
list of individuals who may verify compliance with BEES. AHFC recently passed regulations switching to the International
Energy Conservation Code, with Alaska specific amendments.

Energy Efficiency Interest Rate Reduction Program (EEIRR)
AHFC offers interest rate reductions to home buyers purchasing new homes with 5 Star and 5 Star Plus energy ratings,
which exceed the Building Energy Efficiency Standard (BEES). There are also rate reductions for energy improvements to
older, existing home purchases. AHFC has issued more than 10,000 loans under this program, with a total value of nearly
$1.8 billion.

Energy Ratings
AkWarmTM Certified Energy Raters measure the energy efficiency of a home using AkWarmTM energy rating software
and other diagnostic tools. On new construction, the home's energy rating may be used to help verify compliance with the
Building Energy Efficiency Standard (BEES), and qualify 5 Star & 5 Star Plus homes for the Energy Efficiency Interest
Rate Reduction. AHFC maintains a list of energy raters by community. Nearly 30,000 homes in Alaska have energy
ratings, one of the highest in actual number for any state in the country, regardless of population.

Funding for Energy Programs
The Alaska Housing Finance Corporation (“AHFC”) has an annual capital budget, and all of the energy efficiency-related
grants are included in it. The capital budget is funded out of the Corporation’s annual net income.

Funding for the interest-rate reduction programs is accomplished by:
• AHFC mortgages are funded with the proceeds of tax-exempt bonds.
• The interest rate on a portion of those mortgages is reduced to reward Alaskans who build or buy energy efficient
    homes.
• The loans with the non-subsidized interest rates pay an interest rate that is slightly higher than they otherwise would.
    This ensures AHFC earns the maximum allowed under the tax law.
                                                                                                                  Page 10



ALASKA

AHFC’s ability to finance these programs is hampered by the significant tax restrictions on mortgage revenue bond
issuers. The most onerous restrictions require that:
• Earnings on non-mortgage investments in excess of the bond yield must be rebated to the U.S. Treasury.
• Earnings on mortgage investments can not exceed 1.125% over the bond yield.

If these rules were changed (based upon recommendations to Congress from the Millennial Housing Commission) to allow
housing finance agencies to keep all earnings above the bond yield, those excess earnings could be used to finance
energy efficiency programs across the United States.

State Energy Program (SEP)
The State Energy Program is a federally funded program. Allocation to Alaska has run about $350,000+- over the past few
years, though the allocation in FY 2007 was only $316,000. Half the money is directly transferred to the Alaska Industrial
Development and Export Authority through a memorandum of agreement. Energy audits on schools and community
buildings are the primary use of that funding. The other half of the money is used for education programs sponsored by
the Alaska Housing Finance Corporation. These include educational on energy efficiency for Realtors, builders and
homeowners, as well as paying for printing of various publications on energy efficiency and renewable energy.
Additionally, funds are used as a supplement to the Weatherization Assistance Program for reducing the electrical uses in
eligible homes.

Research Information Center
The Research Information Center (RIC) provides information and technical assistance for AHFC Energy Programs. The
RIC Library has books, fact sheets, videos, reports, catalogs and other resources available for check out on northern
building, innovative housing construction, energy efficiency, renewable energy, sustainable technology and much more.

Small Building Material Loan
AHFC direct financing for the renovation or completion of residential properties located in designated "small communities."
However, the project may include energy efficient upgrades and renewable energy systems.

Weatherization
Through this program, eligible low-income Alaskans can lower the cost of heating their homes. AHFC provides funds to
non-profit organizations and municipalities. To apply for the program, Alaskans should contact the program provider for
their area.

Weatherization is a cost effective service that improves the standard of living for more than 1800 Alaskans annually,
without expenditures from the general fund. These benefits are based on 600 homes completed, with expenditures of
about $5 million. Waiting lists for the five sub-contractors providing weatherization services exceed 500 people who have
applied and are eligible. A 2005 housing needs study showed over 45,000 eligible homes in Alaska.

1.   Weatherization improves resident health and safety
         a) Replace unsafe heating systems over 300 heating systems per year replaced, over 50% for health and
              safety reasons;
         b) Smoke Detectors installed in over 600 homes per year;
         c) Carbon Monoxide problems abated and detectors installed;
         d) Handrails and steps repaired;
         e) Moisture and mold problems abated;
         f) Carbon Monoxide Detectors;
         g) Asthma triggers reduced; and
         h) Reduced drafts and increased comfort—especially important for infants, elderly and disabled people.
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ALASKA

2.   Weatherization provides for Fire Safety through
        a) Furnace electrical repairs;
        b) Education (move combustibles from heat, flammable liquids stored properly, etc,);
        c) Smoke Detectors;
        d) Minor electrical repairs;
        e) Unsafe Lighting repairs;
        f) Chimney and woodstove repairs; and
        g) Egress windows installed during bedroom window replacements.

3.   Weatherization improves building stock, increases durability, reduces maintenance through
         a) Moisture reduction, which reduces rot and mildew;
         b) Reduced ice dams through sealed attics and adequate insulation;
         c) Balanced pressures minimize driving forces of moist air into building cavities; and
         d) Repairs to heating systems, building shell, and weather proofing.

4.   Weatherization reinvests AHFC funds into local communities through
         a) Purchases from local vendors;
         b) Energy savings from fuel are spent locally;
         c) Wages from local hired jobs spent locally; and
         d) Trained workers create additional work.

5.   Long Term benefits of client education
         a) Clients learn how their home works;
         b) How to maintain their properties; and
         c) How to influence energy bills through behavior.

6.   Weatherization produces energy savings
         a) High quality, low cost program with dedicated, skilled workers ;
         b) 31% savings on average according to Oak Ridge National Laboratory;
         c) Makes utility bills more manageable for low income consumers, leaving more cash available for other
              necessary expenses;
         d) Reduces Public Housing expenditures;
         e) Reduces cash outflow for working poor clients;
         f) Reduces fuel and maintenance on generators in villages, lowers PCE; and
         g) Reduced utility arrearages lower burden on other ratepayers through fewer disconnects and unpaid bills.

7.   Reduced emissions of Carbon Dioxide mean cleaner air for Anchorage and Fairbanks through
         a) Reduced electric generation;
         b) Reduced furnace emissions; and
         c) Lower dependency on fuel imports.

8.   Communities benefit through
        a) Reduced homelessness by reducing health and safety risks of living without shelter in Alaska;
        b) Lowering the number of vacant units maintain property values of others in the neighborhood, and property
            tax bases are maintained;
        c) Fewer vacancies reduce crime rates;
        d) Improved housing stock; and
        e) Fewer major renovations and replacements of housing units.
                                                                                                                      Page 12



ALASKA

9.   Weatherization providers have emerged as leaders in developing new building science technologies. Skills among
     Weatherization workers are highly developed, and are transferred to private sector through word of mouth, formal
     training, and career progression

Workshops
AHFC offers energy related workshops, classes and seminars for homeowners, home buyers, renters, builders, lenders,
real estate professionals and others. In FY2006, over 6000 Alaskans attended classes on energy efficiency offered
through or funded by AHFC.

                                            Supplemental Housing Grant Program

Highlights of Activities for Fiscal Year 2006
This program helps alleviate the shortage of decent, safe and sanitary housing for
rural Alaskans. A rural housing needs assessment showed an immediate need for
approximately 25,000 new houses and 20,000 homes in need of major repairs
throughout Alaska1. HUD and AHFC Supplemental Housing Program funding are
not adequate to cover the high cost of construction materials and shipping to rural
Alaska.

In 1981, the Alaska State Legislature established the Supplemental Housing
Development Grant Program to supplement HUD Indian Housing Development
funds for projects constructed by regional housing authorities. Each state dollar
contributed to this program leverages approximately five dollars in federal funds.

By State Statute, AHFC is limited to contributing 20% of HUD’s total development cost of a project. The funds can be
used for on-site water and sewer facilities, roads to project sites, electrical distribution systems, and energy efficient
design features.

In Fiscal Year 2006, 16 Supplemental Housing Program grants were awarded to 7 regional housing authorities

The grants awarded were for new construction or rehabilitation of 512 houses potentially providing safe, decent, affordable
housing for residents in rural and urban Alaska.

$6,082,200 total grant funds were distributed for development in the following categories:

            $4,040,092 Energy Efficiency Design features
            $1,077,394 for Onsite Water and Sewer systems
            $578,934 for Access Roads to houses in project sites
            $385,780 for Electrical Distribution to houses in project sites

Housing authorities have increased local hire on rural housing construction projects up to 90% through on-going training
and apprenticeship programs in skilled crafts.

These funds leveraged $30,082,200 in federal funds (Native American Housing Assistance and Self-Determination Act
and related HUD funds).



1 2005   Alaska Housing Assessment, Information Insights, Inc.
Page 13



ALASKA



                                              AHFC RIC Accomplishments FY2006
   Total outreach: 7857

   INFORMATION REQUESTS: There were 7036 requests from 6273 users in 57 Alaska communities.

   PRESENTATIONS: A total of 36 presentations were provided to 830 individuals: in Anchorage, Bethel, Fairbanks, Juneau,
   Nome, Delta Junction, Palmer, Wasilla and Wrangell:

   23 Home Choice classes to homeowners

   13 informational / educational presentations on house-as-a-system, weatherization, heating systems, lighting, ice dams,
   indoor air quality, new construction, crawlspace and attic venting, energy-efficiency and regulatory requirements to students,
   general public, realtors, builders, lenders and other professionals.

   MEDIA: Provided construction, housing and energy information for Governor’s Office, Alaska Business Monthly, Alaska
   Newspapers, Inc., Speaker of the House, and TV news stories for KTVA. Interviewed on KSTK-Wrangell and KCHU-Valdez
   radio programs on energy-efficiency. Interviewed for 6 energy efficiency segments on Alaska Real Estate Showcase TV
   program.

   PRODUCTION: Produced “Alaska House Doctors” video and provided technical assistance for video on REMOTE/PERSIST
   building system. Editing assistance for AHFC Building Energy Efficiency Standard brochure update. Reprinted Alaska Hous-
   ing Manual and Alaska Log Building Construction Guide. Developed 12 PowerPoint presentations for AHFC seminars.

   SPEAKING: AVCP Housing Summit in Bethel; “Fueling Anchorage’s Energy Future”, BLM Science Center; Alaska Library
   Association, Anchorage Chapter; Alaska Pacific University students; Nome Energy Summit.

   DISPLAYS: Mat-Su Homeshow, Wasilla; Alaska Rural Energy Conference, Valdez; BP Earth Day, Anchorage.

   WEB: New AHFC RIC web page; development of Alaska Energy Portal web site.

   LIBRARY: Installation of improved webcast & teleconference equipment; successful test of 2 way videoconferencing; conver-
   sion of library management software to web-based system. Approximately 25 webcast/teleconference meetings in library
   conference room…a two fold increase over last fiscal year.

   AV SUPPORT: AHFC Housing Needs Assessment; AVCP Housing Conference; Interagency Group Meeting, Alaska Train-
   ing Institute, Weatherization Standards Committee. Assisted in development and planning for new AHFC Classroom.

   OTHER: Organized tours of BLM Campbell Creek Science Center, Builder’s Choice Modular Home Factory, Northerm Win-
   dows factory; assisted in providing research information for Alaska Energy Authority, Institute for Economic and Social Re-
   search, Alaska Cooperative Extension, University of Alaska, Alaska Pacific University, Tanana Chiefs Conference, RuralCap,
   Renewable Energy Alaska Project, Alaska Bioneers, Anchorage Homebuilders Association, Alaska State Homebuilders
   Association, Database for State Incentives for Renewable Energy national website, Arkansas Development and Finance
   Authority.
                                                                                                                   Page 15



ARIZONA

Arizona Department of Commerce
1700 West Washington, Suite 220
Phoenix, AZ 85007
Phone: 602.771.1201
Fax: 602.771.1203
Website: http://www.azcommerce.com/Energy/



To provide leadership on policy and programs that drive Arizona’s sustainable energy development, economic
prosperity and security. Programs, services, and trainings seek to maximize the state’s efficient use of natural
resources through conservation, efficiency, solar and renewable energy.

The State Energy Program (SEP) funded by the U.S. Department of Energy is the foundation for many programs within
Arizona’s Energy Office. Achievements and Programs that receive SEP funding:

Energy Conservation, Engineering and Building Science Programs
Through residential training and technical assistance, in partnership with Arizona utilities and the building industry, the
Energy Office staff provides training and technical assistance to a wide variety of audiences. The training targeted to the
building industry has focused on the incorporation of basic building science techniques throughout the building process to
promote the energy conservation initiatives. Major focus areas include proper design, advanced detailing, correct
installation of ductwork, insulation, and ventilation systems.

Since implementation (1996) of this training, improvements in the installation of the HVAC system (sealed ducts) have
been incorporated in over 160,000 homes. In 2006, over 20,000 EPA ENERGY STAR homes were built in Arizona. The
cumulative saving of approximately 120,000 kW (100 MW) and 200,000,000 kWh has been achieved through this training.

Southwest Building Science Training Center (SBSTC), operated by Foundation for Senior Living Home Improvement
and funded through the Department of Commerce Energy Office and local utilities, provides Arizona Low-Income
Weatherization Technicians and residential building trades with the knowledge and skills needed to successfully perform
diagnostic and repairs on Arizona’s housing stock. Through this partnership and in conjunction with the Building
Performance Institute (BPI) the center is utilized to provide nationally recognized building science certifications to the
Southwest’s construction community.

The SBSTC consists of classroom space, combustion safety lab, pressure diagnostic lab and hand-on work stations.
Training courses include Basic of Energy, Applied Building Science, Pressure Diagnostic, Thermal Performance,
Advanced Pressure Diagnostics, Health and Safety, Combustion Appliance Diagnostic, Moisture/Mold Issues and
computer classes. The labs provide attendees with the opportunity to gain hands on experience with a number of pieces
of diagnostic equipment including Blower Doors, Duct Blasters, pressure gauges, CO detectors and infrared cameras.

In January of 2008, the Foundation for Senior Living, Arizona Department of Commerce Energy Office and EPA kicked off
the Arizona Home Performance with ENERGY STAR program, which promotes use of a “whole house solutions” approach
to reducing high energy bills and increasing homeowner comfort and safety. Arizona Home Performance with ENERGY
STAR program certifies contractors to perform a comprehensive review of a home’s heating and cooling system, windows,
insulation levels, and air flows into, out of and within the home. Work is performed in accordance with established national
standards.
Page 16



ARIZONA

State Agency Energy Efficiency Program provides SEP funded training and technical assistance towards energy
efficiency in state government buildings. In 2003 Arizona’s Governor Napolitano signed into law HB 2324 that sets goals
for reducing overall energy use in state government and university buildings. The law requires 10% savings by 2008, 15%
by 2011, and requires new construction to be more energy-efficient. The law required annual reporting by the Arizona
Department of Commerce Energy Office to the State Legislature. In 2007 State Agencies had average reductions of 5
percent. The Arizona Department of Emergency and Military Affairs lead the way in reducing their energy usage. Their
energy usage in FY06-07 is 22% below their FY01-02 level. The University of Arizona and Arizona State University have
completed energy saving performance contracts to improve the efficiencies of their facilities on campus. State
government is setting an example by having ten state buildings receive LEED designation from the U.S. Green Building
Council.

Community Energy Planning (CEP) is designed to encourage and assist in the development and implementation of
community energy management programs by facilitating the planning process and providing the necessary basic tools,
staff training and technical assistance.

As part of CEP, the Energy Office has made funds available to assist communities incorporate energy into their planning
process and implement energy audits of the community’s facilities. All incorporated Arizona cities, towns, counties,
improvement districts, and Indian tribes with populations under 70,000 were eligible to apply. In 2007 two grants were
awarded, one to the City of Bisbee to develop a Community Energy Plan and one to the City of Flagstaff to develop a
Greenhouse Gas Management Plan. Additional technical assistance was provided to 19 communities and 11 regional
organizations.

Renewable Energy and Energy Efficiency Grant Program for Schools was launched in 2007. The Energy Office, in
conjunction with the Schools Facility Board, developed a renewable energy and energy efficiency grant program for
Arizona schools. Funding for the program was set at $2.5 million pursuant to HB2792 passed during the 2007 legislative
session. More than 60 schools submitted grant applications totaling more than $13 million worth of renewable energy and
energy efficiency projects. During the course of the application process the Energy Office provided energy technical
assistance to 32 schools districts across the state.

Education and Community Outreach Programs
The Energy Office continues to provide education programs through public events and web-based information.

•   The Energy Office coordinated energy sessions at the Arizona Department of Commerce Rural Development
    Conference.
•   The Energy Office and Northern Arizona University were funded by the U.S. Department of Energy to develop and
    deliver Renewable Energy and Energy Efficiency Workshops to Arizona tribes. Workshops were conducted for tribal
    government officials at various locations on three reservations in Arizona.
•   The Energy Office was funded by the U.S. Department of Energy to conduct a Photovoltaic Design and Installation
    Workshop at the ASU-Photovoltaic Testing Lab to train a solar workforce in tribal communities as a way to foster
    economic development opportunities on the Navajo and Hopi Tribe lands as a result of the closing of the Mohave
    Generating Station and the Black Mesa Mine. The week-long workshop was attended by 15 tribal members from the
    Hopi and Navajo tribes.
•   The Energy Office’s Tribal Rural Electrification Program worked with two communities (Oak Ridge Community in the
    Black Mesa Chapter of the Navajo Reservation and Hotevilla of the Hopi Reservation) to electrify 25 homes that do
    not have electricity service.

Governor’s Office of Housing Development Tax Credit Program Working with the Arizona’s Housing Office, the
Energy Office has incorporated energy codes and performance standards covering duct leakage, room pressures and
insulation installation. Approximately 2,000 low-income units are constructed yearly under this program. These
                                                                                                                     Page 17



ARIZONA

performance based standards result in substantial saving. A study completed by EPA, “Phoenix Home Energy Efficiency
Study 2005” found that production homes that incorporate these performance standards have a 33% lower summer/
cooling intensity than the typical baseline homes and 20% below ENERGY STAR® homes.
The key to the success of this program has been the hands-on field training and technical assistance provided by the
Energy Office to the developers, builders and trades constructing the complexes. It is one thing establishing standards,
but it is absolutely imperative that the people implementing these standards understand what the standards are, why they
have been adopted and how to install them correctly.

Wayne Waites, Regional Energy Representative for the U.S. Dept. of Housing and Urban Development, called Arizona’s
program “simply outstanding and I am sure one of the best models that can be employed as part of housing development
programs.”

In a number of cases developers have stated that they plan on utilizing these standards in all (non-tax credit) multi-family
projects and in tax credit projects in other states.
Page 19



ARKANSAS

Arkansas Department of Economic Development
One Capitol Mall
Suite 4B-215
Little Rock, AR 72201
Phone: 501.682.1370
Fax: 501.682.2703
Website: www.arkansasenergy.org


The Arkansas Energy Office (AEO) advocates and promotes energy efficiency, emerging technologies, and resource
development through energy education and information programs as well as manages federal energy funds in the State of
Arkansas. The AEO offers a variety of services and resources for a wide range of customers. All program information,
publications, state and national energy data information, and additional resources are available to view and download at
the Energy Office website.

                                        State Energy Program (SEP) - Activities

                               State Energy Program (SEP) - U.S. Department of Energy
                                    Funds Awarded and State Cost Share—Arkansas

          State FY                  Federal SEP Grant               Total State Match                  Cost Share

          FY 2001                                  $462,000                        $107,401                23%

          FY 2002                                  $558,000                        $126,600                23%

          FY 2003                                  $559,000                        $230,153                41%

          FY 2004                                  $540,000                        $231,460                43%

          FY 2005                                  $544,000                        $263,000                48%

          FY 2006                                  $424,000                        $249,205                59%

          FY 2007                                  $563,000                        $238,715                42%

                      Totals                     $3,650,000                      $1,446,534                40%


Buildings
• The AEO provided a grant to the Arkansas Department of Environmental Quality for the purposes of systems
    monitoring and verification (M&V) for the first state owned building designed and constructed to meet LEED – Silver
    criteria. The 124,310-square-foot building has been awarded the Three Globe Standard from the Green Building
    Initiative in September — the first in the state to receive such a designation — and is seeking the Silver Leadership in
    Energy and Environmental Design (LEED) rating from the USGBC.
• Public Schools Benchmark Study. The AEO provided the University of Arkansas, Department of Mechanical
    Engineering funding to conduct energy measurement and analysis, and develop a training curriculum for small K-12
    school districts. Graduate students participated in the field study, analysis, and development of a facility
    management-training manual and workshop.
                                                                                                                   Page 20



ARKANSAS


•   The AEO is funding a solar hot water monitoring and installation program. This program has three components: 1)
    monitoring existing residential installations, 2) installing new solar water heaters and monitoring hardware on three
    institutional buildings and, 3) educating plumbers on how to install solar water heaters during the institutional
    installations.

Outreach and Education
• The AEO has reached agreement with the Arkansas Public Service Commission (AR-PSC) to work with the state’s
    investor owned gas and electric utilities, including the 17 electric Cooperatives to develop and administer the
    Educational Quick Start Program, called Energy Efficiency Arkansas (EEA). The AR-PSC approved the
    Memorandum of Understanding (MOU) with a budget of $2.4 million that outlines a multi-media effort, energy
    efficiency resource material development, materials distribution system, and building trades’ education industrial
    workshops. The EEA programs and activities will begin in January 2008.

•   The AEO partnered with all of the largest retail ENERGY STAR partners; Wal-Mart, SAM’S CLUB, LOWES, The
    Home Depot, and SEARS, to promote the Change-a-Light – Change the World Campaign. A newsprint ad was
    developed in both Spanish and English, utilizing Arkansas specific energy savings data and placed in a statewide
    newspaper and two Hispanic newspapers. This is the first ad in the nation where all competitive retail partners and
    their respective logos were placed on a single ad together.

•   The AEO provided a grant to the Arkansas Home Builders Association to organize and conduct three, two-day, NAHB
    Green Building Guidelines workshops. Workshop brochures/registrations were sent to all licensed builders (~ 5,700)
    in Arkansas. Workshops were held in Springdale, Little Rock, and Jonesboro, Arkansas.

•   The AEO provided a grant to the USGBC – Arkansas Chapter – in support of continued education courses (and
    credits) for the design and building trades to improve energy performance in new and existing buildings where
    ENERGY STAR, LEED, and Green Globes criteria is utilized.

•   More than 13,211 individual publications and resource materials were distributed by the AEO to citizens, building
    trade industries, design professionals, industrial facilities, special events (Weatherization, EARTH DAY and ENERGY
    AWARENESS month activities, etc.), government building authorities, and private businesses. More than 256,000
    publications, fact sheets, articles, and manuals were downloaded from the AEO website at
    www.arkansasenergy.org

•   The AEO sponsored and supported educational activities around the State such as the Solar Splash at the University
    of Arkansas at Fayetteville (the University’s team placed second), seven state and regional science fairs, and the
    energy exhibit at the Museum of Discovery (there were over 103,000 visitors to the Museum, over 49,000 public
    visitors and over 54,000 students).

Industrial
• The AEO conducted the Combined Heat and Power (CHP) seminar for the industries in partnership with the
    Arkansas Environmental Federation. This workshop was the first of its kind on CHP.

•   The AEO provided a grant to the Texas Engineering Experimental Station in support and sponsorship of the 2007
    national Industrial Energy Technologies Conference. The AEO participates in the conference Advisory Board and
    assists in the outreach efforts within the state.
Page 21



ARKANSAS

•   The AEO funded a biorefinery feasibility study through the University of Arkansas at Monticello. The study was
    conducted to determine the technical and economic feasibility for Potlatch Corp. to construct and operate a
    biorefinery pilot plant.

Transportation and Fuels
• SEP funds were used to support a joint project with the Arkansas Highway and Transportation Department to install
    LED traffic signals in 54 small communities. There were 2,957 lenses replaced accounting for an annual reduction of
    882,312 kWh per year. This had a 10 year life cycle energy saving of 53,273,835 kWh, and an annual cost reduction
    of $498,690 with a simple payback time of 1.5 years. Additionally, replacing the incandescent traffic signals with
    LEDs has a life cycle air pollution reduction of 85,238,136 lbs of CO2.

•   The AEO provided a cost share grant to the Little Rock School District to purchase and demonstrate a plug-in hybrid
    bus for the 2007-08 school year.

•   The AEO received an SEP Special Projects grant for Clean Cities to install a 20,000 gallon biodiesel storage and
    blending facility at the Arkansas Terminaling and Trading facility at the North Little Rock oil terminal. The grant was
    also used to promote the retail distribution of biodiesel as well as to encourage Central Arkansas fleets to use
    biodiesel for one year.

•   The AEO provided a grant to the Arkansas Plant Board, Weights and Measures, to purchase biodiesel testing and
    quality control equipment.

•   The AEO provided a grant to Arkansas Tech University to demonstrate the small scale feasibility of a biodiesel from
    waste grease and chicken fat process.

•   The AEO initiated the development of the Arkansas Bioenergy Policy Council to develop draft legislation to stimulate
    development of a biofuels industry and to reduce Arkansas’ dependence on petroleum.
                                                                                                                        Page 23



CALIFORNIA

California Energy Commission
1516 Ninth Street, MS #39
Sacramento, CA 95814-5512
Phone: 916.654.5403
Fax: 916.654.4423
Website: http://www.energy.ca.gov


The California Energy Commission is the state's primary energy policy and planning agency. Created by the Legislature in
1974 and located in Sacramento, the Commission has five major responsibilities:

•    Forecasting future energy needs and keeping historical energy data
•    Licensing thermal power plants 50 megawatts or larger
•    Promoting energy efficiency through appliance and building standards
•    Developing energy technologies and supporting renewable energy
•    Planning for and directing state response to energy emergency

With the signing of the Electric Industry Deregulation Law in 1998, the Commission's role includes overseeing funding
programs that support public interest energy research; advance energy science and technology through research,
development and demonstration; and provide market support to existing, new and emerging renewable technologies.
The California Energy Commission has applied SEP funding toward updating building and appliance efficiency standards,
developing the “California Solar Initiative”, assisting local agencies in reducing energy use, and developing efficiency
incentives for school districts, using state bond funds for school construction and renovation.

Building Energy Efficiency: The Energy Commission's Building Energy Efficiency Standards, combined with the
Appliance Efficiency Regulations, are California's most powerful and cost-effective tools for reducing energy use in
buildings and are expected to contribute significantly to the reduction of greenhouse gases statewide. The
Energy Commission staff has completed a major update of the current standards in preparation for adoption as the 2008
Building Energy Efficiency Standards in January 2008. The 2008 Standards feature new measures improving the energy
efficiency of newly constructed buildings and additions and alterations to existing residential and nonresidential buildings
in California.

Appliance Efficiency: The Energy Commission's Appliance Efficiency Regulations are the most comprehensive in the
nation, including, most recently, adoption of new standards for lighting products and external power supplies. Recent
legislation is “raising the bar” for state “general purpose” lighting efficiency, and will require a concerted effort to achieve
the goals set for the next decade. SEP-funded staff are now beginning the process to develop and update regulations for
general purpose lighting. Staff is also setting the stage to pursue regulation of other consumer electronics.

California Solar Initiative: The Energy Commission has developed energy efficiency requirements and building
component and installation standards for a statewide, ratepayer- funded incentive program, as required by Senate Bill 1
passed into law in 2005. Senate Bill 1 is the culmination of the Governor’s Million Solar Roof and New Solar Homes
Partnership initiatives. The Energy Commission is adopting program guidelines for the statewide incentive program in
December 2007.

Public Agency Energy Efficiency: Over the past quarter, the Commission has provided technical assistance to twenty-
eight local agencies, cities and school districts. These staff and consultant-conducted energy audits are state-funded.
They serve as the first step in encouraging the agencies to pursue lighting, HVAC, water/wastewater treatment and other
retrofits to reduce their ongoing energy costs. Some agencies also pursue solar photovoltaic projects to reduce grid-
based electricity expenses.
Page 24



CALIFORNIA

During the same three month period, the Public Agency Assistance Program awarded three low interest loans totaling
over $5 million to local agencies to support efficiency investments. The Program awarded the Eastern Municipal Water
District $3 Million to install a 900 kW fuel cell cogeneration project using digester gas. The City of Alhambra received a
loan of nearly $900,000 to retrofit traffic signals to light emitting diodes and upgrade streetlight wiring.. The San Elijo Joint
Powers Authority was awarded a loan for $1.2 Million to reduce the energy consumption associated with their wastewater
activated sludge process. These projects, administered by staff funded through SEP will reduce grid-based energy use by
an estimated 7 million kWh/year and peak electricity demand by 793 kW. These projects will reduce the equivalent of
2,900 tons of carbon dioxide each year. With funding for more public agency efficiency loans available, staff are
participating in meetings with local agency and school district associations, utilities, as well as making one-on-one calls.
The Program’s goal is to loan another $10 million over the next 12 months to reduce energy costs borne by taxpayers.

Schools: California voters have approved $10.4 Billion in bonds for renovating and constructing new schools. SEP-
funded Staff have been working over the past few years with a consortium of state agencies, utilities and school district
representatives to develop specifications for “high performance schools”. The Collaboration for High Performance
Schools (CHPS) has developed guidelines for schools that use sustainable construction, are energy efficient, and are
designed to provide an effective learning environment. Working with California’s Office of Public School Construction,
staff helped the state develop regulations based on the CHPS guidelines. The regulations will provide for $100 million in
incentives grants to promote the use of these high performance attributes in new construction and modernization projects
for k-12 schools. The number of “high performance schools” credits the project receives, multiplied by a percentage
factor, determines the incentive. This will ultimately provide an increase ranging from two percent to just over ten percent
of each school’s base grant.
                                                                                                                    Page 25



COLORADO

Colorado Governor's Energy Office
225 East 16th Avenue, Suite 650
Denver, CO 80203
Phone: 303.866.2100
Fax: 303.866.2930
Website: http://www.colorado.gov/energy


The Colorado Governor’s Energy Office (GEO) is a new agency within the Colorado state government. Supplanting the
Office of Energy Management and Conservation (OEMC), GEO is tasked with bringing Governor Bill Ritter Jr.’s vision of a
New Energy Economy to Colorado. Details about many of the priorities referenced in this mid-year update are included in
the Colorado Climate Action Plan which can be found online at www.colorado.gov/energy. The plan was released in
November of this year.

Residential Buildings
Colorado’s new leadership has renewed the state’s commitment to energy efficiency in homes. GEO is implementing
statewide energy code as a result of that commitment. The statewide energy code will at minimum meet the International
Energy Conservation Code (IECC) 2003.

GEO is currently offering trainings in all 64 Colorado counties to building code officials, builders, architects and other
interested parties. All trainings are free and cover the information required to implement IECC 2003 on the local level.
Each training features a morning session that teaches IECC 2003 and an afternoon session addressing IECC 2006. With
this approach GEO hopes to encourage some communities to move directly to IECC 2006, while offering communities
already at the 2003 level the option of upgrading. GEO will also be offering trainings and assistance for communities that
are considering “stretch codes”, or codes that go beyond IECC. In addition, GEO provides technical support to all code
implementers to ensure that codes are properly implemented.

In addition to code training, GEO has initiated a new program that brings ENERGY STAR certified new homes to Colorado
beginning with 10 partner communities in early 2008, and continues its work in weatherization of income qualified homes.
GEO will also be making energy efficiency incentives available to homes throughout the state, starting with an insulate and
seal program in 35 partner communities in early 2008.

Biofuels
In January of 2008 Colorado will sell its 2,000,000th gallon of biofuel. This comes as a result of a year-long push that
resulted in a quadrupling of biofuels stations in Colorado. As efforts to establish new stations wind down, Colorado will
begin to shift towards doubling the amount of biofuels sold in the state annually.

Colorado will continue to add biofuel stations with a strategic focus on identifying the communities or regions with the
greatest need for infrastructure by analyzing the concentration of flex fuel and diesel vehicles, and significant traffic.
Simultaneously GEO is pursuing opportunities to label highway exit signs with biofuel station indicators. GEO continues to
convene the Governor’s Biofuels Coalition (GBC) which is made up of industry professionals and interested individuals.
The GBC meets on a monthly basis to set the agenda for implementing the Governor’s biofuels strategic vision. At this
point the GBC has volunteered literally thousands of hours in an effort to help Colorado reduce its need for foreign derived
fuels.

Colorado Carbon Fund
The Colorado Carbon Fund (CCF) is a newly established GEO program that offers businesses, government and
individuals interested in investing in carbon offsets and renewable energy credits a Colorado based option that sells
carbon offsets achieved via projects that take place exclusively in Colorado. The CCF takes the dollars generated by
Page 26



COLORADO

voluntary consumer purchases of carbon offsets and invests them in Colorado based projects that focus on carbon
reduction through mitigation, efficiency and the use of renewable energy. The CCF also recognizes that its projects are an
opportunity for education and demonstration. All CCF projects will be transparent and verified for carbon reductions in an
effort to educate consumers about how the economics of carbon reductions work, and in an effort to demonstrate the
effectiveness of carbon offsetting. GEO believes that the CCF’s strategy is a shift in the way carbon offsets are sold in the
Unites States and seeks to ensure a continued and successful voluntary market for carbon offsets in Colorado.
The CCF is off to a great start in 2007 with governments and businesses stepping up to partner with GEO to implement
and invest in the fund. Local governments are interested in the fund as it offers them local carbon credits that can be
offered to their citizens. This will help them move their community closer to its carbon reduction goals. Businesses are
interested in participating in a Colorado based program that offers verified and transparent credits to guarantee that their
investments are yielding real results in Colorado. The Colorado Carbon Fund is slated to begin implementing projects in
early 2008.

Community/Small Wind Support
Colorado is investing in small wind like never before. Starting in 2008 a financial incentive will be made available for small
wind projects. This incentive seeks to support projects ranging from residential and small business projects up to larger
community based projects. GEO is currently planning a series of outreach events in the spring of 2008 that will support
the small wind outreach while encouraging the pursuit of community wind projects.

GEO also supports the Colorado Wind for Schools program. Colorado has set an ambitious goal of assisting 9 schools in
educating about wind energy by installing small wind machines on site. GEO is supporting the program with direct grants
to the schools. This program creates a connection between community and government while providing an opportunity for
promoting community awareness.

Finally, Colorado is pursuing a statewide net metering standard to help create a more robust market for renewable energy.
The standard will focus, in part, on the communities with wind resources that are served by the rural, cooperative and
municipal electric utilities. If this statewide standard becomes law another hurdle to the implementation of renewable
energy, specifically wind, will be removed.

Geothermal
GEO, in partnership with the Colorado State Geologist’s Office, is in the process of identifying Colorado’s geothermal
resources for economic development. The effort is analyzing geothermal resources for direct use (greenhouses, aqua-
culture, district-heating) and/or electricity production potential and determining what the best applications of those
resources may be. Using the Colorado Geothermal Development Strategic Plan that was released in the autumn of 2007
as a guide, Colorado expects to see its use of geothermal resources increased in 2008. In early January of 2008 GEO will
issue a Request for Information (RFI) with the goal of creating a list of potential projects and resources available to assist
in developing geothermal in Colorado. The projects will be evaluated by the Geothermal Working Group and
recommendations will be made via modifications to the Geothermal Development Strategic Plan.

GEO is also conducting a trade mission to Nevada, and possibly Idaho, in partnership with the Department of Energy in
May of 2008. The purpose of the mission will be to explore electricity production technology options and resources.
Simultaneously GEO is exploring the use of Geothermal Management Districts to create community based geothermal
districts. GEO is also supporting the hire of a fulltime geologist with the Colorado Geological Survey to continue the
assessment of geothermal resources in Colorado.

Finally, GEO is creating a team that will evaluate the application of ground source heat pumps as a potential clean heating
and cooling resource. The team will consider the CO2 emissions for ground source heat pump applications versus heating
with natural gas and cooling with conventional air conditioning in Colorado’s various climate zones. This will inform GEO’s
recommendations for utility use of ground source heat pumps as a natural gas demand side management tool.
                                                                                                                      Page 27



COLORADO

Commercial Buildings
GEO is significantly focused on promoting energy efficiency investment and the use of renewable energy in public and
privately owned commercial buildings as emphasized in the Governor’s executive orders and the state’s legislation. In
2007 legislation was passed that calls for all new state buildings to be built to a minimum of Leadership in Energy and
Environmental Design (LEED) Gold, or equivalent. In addition, legislation was passed that establishes the state’s
commitment to improving the energy efficiency of all Colorado schools through the use of performance contracting. GEO
has made a significant investment in implementing this legislation, including hiring experienced energy engineers to offer
assistance to all municipalities and counties that are interested in increasing their energy efficiency through the use of
performance contracting.

GEO has also implemented a grants program to help pay for renewable energy projects in public buildings and schools in
concurrence with the performance contracting process. GEO has also made grants available for public buildings and
schools that are interested in pursuing LEED via high performance design assistance made available through GEO.

Utility Issues
GEO has invested in its utility program by expanding its expertise on utility issues including demand side management,
transmission and large scale renewable energy projects, as well as expertise in issues more relevant to small utilities. By
offering this expertise to the communities of Colorado, as well as to the Public Utilities Commission and the utilities
themselves, GEO is forging new relationships with the utility community to help fulfill its goals while simultaneously
achieving the goals of the New Energy Economy.

Solar Programs
In early 2008 GEO will launch two programs that will encourage the use of solar energy in Colorado. The first is a solar
electricity rebate program that will be available in communities that currently have an incentive of less than $4 per watt, or
no incentive at all. GEO’s incentive will be matched with local dollars and will be capped at $4 per watt with a total rebate
of no more than $12,000.

The second program will be available statewide, unless a similar program is already in place. The program will promote
the installation of domestic and space heating solar hot water systems by providing a rebate of no more than $3,000 for a
“typical” single family home system. This incentive will also feature a community match where GEO’s dollars are matched
by the local government or utility.
Page 29



DELAWARE

Delaware Energy Office
1203 College Park Drive
Suite 101
Dover, DE 19904
Phone: 302.735.3480
Fax: 302.739.1840
Website: http://www.delaware-energy.com


Delaware’s “State Energy Program”
The State Energy Program (SEP) has become the “umbrella” program for the Energy Office to develop initiatives to
support General Assembly legislation and recommendations of the Governor’s Energy Task Force released in September
2003 and Executive Order # 82 released in February 2006. SEP measures such as Energy Codes, ENERGY STAR, State
Facilities, Renewable Energy, Energy Efficiency, and Strategic and Energy Emergency Planning have been developed
and implemented to meet goals and objectives established by the General Assembly and the Governor aimed at making
Delaware more energy secure and efficient, environmentally friendly, and economically sound.

Delaware Sustainable Energy Utility
To serve the near- and long-term economic, social and environmental interests of the State, Delaware will establish a
Sustainable Energy Utility (SEU). This entity will mitigate inescapable features of Delaware’s current energy system; its
tendency toward price volatility; the lack of locally provided, competitive energy services; the high environmental costs of
its current operations; and the present inability of citizens and small businesses to govern their energy futures.

The immediate goals of the Delaware Sustainable Energy Utility follow:
• Provide residential energy users with the means to reduce their electricity bills by at least 10% in two years and 20%
     within five years.
• Offer sustainable energy services in a manner that would encourage at least 50% of Delawareans to acquire them.
• Organize a solar electricity market that takes advantage of the State's exceptional assets regarding photovoltaic
     technology so that, within 10 years, 1-2% of needed electric power capacity derives from this local resource.
• Spur the entry of high-efficiency vehicles in the State so that residents are not forced to be 'price takers' when it
     comes to transport energy.
• Ensure energy affordability for all Delawareans by creating a 100 kWh lifeline at 5 cents per kWh for households
     served by the State's Low Income Home Energy Assistance Program, and complement this with an extensive, cost-
     effective weatherization program.
• Establish State government as a leader in the transition to sustainable energy use.
• Meet all goals while improving the State's environmental quality and livability.

The Delaware SEU should be operational in the fall of 2008 and will be monitored on a day-by-day basis by the Delaware
Energy Office.

Delaware Energy An$wers Program
The Delaware 143rd General Assembly enacted and Governor Minner signed into law Senate Bill 281, which amended
Title 29, §8057 of the Delaware Code to include the Energy Efficiency Financial Incentives Act of 2006. The Act
appropriated 8 million dollars to the Department of Natural Resources and Environmental Control for the development of
an energy efficiency program.
                                                                                                                  Page 30



DELAWARE

The Energy An$wers Program is currently divided into three separate target markets:

•   Delaware Energy An$wers for Home Appliances
•   Delaware Energy An$wers for Business
•   Delaware Energy An$wers for Home Performance

Energy An$wers for Home Appliances
The Energy An$wers for Home Appliance Program was kicked off in late September 2006 with an initial budget of
$400,000 and continued through 2007. The budget for the Program has been readjusted to $600,000 and will likely be
increased again in 2008. The program provides cash incentives to citizens who retire inefficient appliances and replace
them with ENERGY STAR appliances and other high efficient products. Grants up to $500 per home are available for
energy-efficient products, such as refrigerators, washing machines and air conditioners. The average grant per household
is $150.00. Of the total funds available through the Delaware Energy An$wers for Home Appliance Program, the Energy
Office has committed almost all of the readjusted budget. The Program will transition into the Delaware Sustainable
Energy utility later in 2008.

Delaware Energy An$wers for Business
Currently, the Energy An$wers for Business Program has already processed 14 applications reserving nearly $700,000 in
grant funds. The Program initiated a marketing plan that includes working cooperatively with the Delaware Economic
Development Office, the Department of Agriculture, Division of Corporations, and Healthcare. The Energy Office held
workshops and participated in trade events with the Delaware Manufacture’s Extension Partnership, the Chambers of
Commerce, Delaware Food Industry Council, Delaware Retail Council, and the Delaware Rotary. The Energy Office has
also participated in activities with the Delaware Association of Energy Engineers, ASHRAE, and others to reach the
technical and facility leaders of Delaware businesses. This Program will also transition into the Delaware Sustainable
Energy utility later in 2008.

Delaware Energy An$wers for Home Performance
The Energy An$wers for Home Performance Program began training activities for service-providers in late 2007. This
program, a collaborative with neighboring state energy offices, has leveraged nearly $90,000 in federal funds and $75,000
in State funds for program development and marketing. The Program will be initiated by the Energy Office as a “Pilot” in
early 2008 and will later be transitioned into the Delaware Sustainable Energy Utility.

Green Energy Fund
The Delaware 142nd General Assembly enacted and Governor Minner signed into law Senate Bills 93 and 145, which
amended Title 29 of the Delaware Code to include new provisions for utilizing the Green Energy Fund. The law was
further amended by the Delaware 143rd General Assembly. The law continues to encourage and promote the use of
renewable electric generation technologies, alternate energy technologies, and energy efficiency, by residential and non-
residential (commercial) customers. Further, the law amends §8054(d) by dividing the Green Energy Fund into three
separate and distinct programs.

Green Energy Fund Grant Program
The Green Energy Endowment Program provides cash grants from the Green Energy Fund to customers that have
constructed and purchased Renewable Energy Technology and have placed such Renewable Energy Technology in
service. Per the Green Energy Program regulations qualifying technologies include: Photovoltaic, Solar Water Heating,
Geothermal, Wind Turbine and Fuel Cell systems. The number of Green Energy Program funded installations has grown
every year since its inception in 1999. Most recently in Calendar Years 2007 and 2008, the number of system installations
tripled from all previous years. The increasing program participation could be attributed to better marketing strategies,
environmental awareness, and the electric rate increase for Delmarva Power Customers effective May 1, 2006. The
Page 31



DELAWARE

Green Energy Fund Endowment Program distributed over $2 million dollars in 2007 and over $4.5 million dollars in
Renewable Energy Grants since its inception.

Technology Demonstration Program
The Technology Demonstration Program is for projects that demonstrate the market potential for renewable energy
technologies and accelerate the commercialization of these technologies in Delaware. To be eligible for consideration, a
Technology Demonstration Program project must demonstrate either a novel renewable energy technology or a novel
application of an available renewable energy technology. Projects must include a public education component, such as
integration into an educational program or location at a facility that allows public tours of the installed renewable energy
technology. In three years the Technology Demonstration Program has awarded over $2.1 million dollars for renewable
demonstration projects. The project focuses have varied in nature from demonstrating new methods of fuel cell creation
from recycled materials to reducing the cost of ethanol production, shipping, and dewatering.

Research and Development Program
The Research and Development Program is for projects that develop or improve Renewable Energy Technology in
Delaware. The Office will accept proposals for Research and Development Program grants for qualifying projects that
improve the engineering, adaptation, or development of products or processes that directly relate to renewable energy
technology. In two years the Research and Development Program has awarded 6 projects. These funded projects have
concentrated on advancing the science of photovoltaic system design, manufacturing, and array installation. Other funded
projects have improved the development of fuel cell efficiency and durability and studied the feasibility of Off-Shore Wind
in Delaware Waters. Currently the Research and Development Program has awarded over $900,000 dollars in the past
three years.

Strategic and Energy Emergency Planning
The State Energy Program includes measures dedicated to both strategic and energy emergency planning. The Governor
created an Energy Task Force in 2002 dedicated to creating a Delaware Strategic Energy Plan to be updated on a five
year interval. The Task Force recommendations (the Plan) was made public on September 30, 2003 and set the course
for Delaware’s energy future. This report can be viewed at www.delaware-energy.com. An updated State Strategic Energy
Plan has been commissioned by the Energy Office and should be completed in early 2009. The Energy Office has been
actively engaged in providing solutions to recommendations relating to energy efficiency, renewable energy, and energy
infrastructure development in the State. The Energy Office has also been tasked by the Legislature to develop and
maintain an energy emergency plan for Delaware. The Delaware Energy Emergency Response Plan (DEERP) was
created in 2003 and updated in 2005 to provide guidance to the Governor in a time of energy emergency. This plan
funded through SEP dollars is comprehensive in nature and allows for the protection of Delaware citizens during any
energy crisis, natural or political. The Energy Office is actively engaged with the Delaware Emergency Management
Agency on a regular basis and participates on the Department of Safety and Homeland Security’s Catastrophic Planning
Steering Committee dedicated to the safety of Delaware’s citizens.

Conclusions
The State Energy Program has been a vital and productive mechanism for the Delaware Energy Office to be able to
function effectively and provide guidance and direction to state government and the general public on all energy-related
matters. The millions of dollars leveraged from Delaware Utilities (Green Energy Fund) and the General Assembly (Energy
An$wers Program) have enabled the Delaware Energy Office to be a productive element of government in Delaware and
in the Region. The proposed Delaware Sustainable Energy Utility monitored by the DE Energy Office will provide even
more opportunities for Delaware citizens in the areas of energy efficiency and renewable energy in the State.
                                                                                                                  Page 33



DISTRICT OF COLUMBIA

District Department of the Environment Energy Office
2000 14th Street, NW, Suite 300E
Washington, DC 20009
Phone: 202.673.6700
Fax: 202.673.6725
Website: http://www.dceo.dc.gov/dceo/site/default.asp


The District of Columbia Department of the Environment Energy Office performed energy efficiency workshops for 24,000
low-income residents. These workshops, performed 6 times daily for between 30 and 60 people, educated attending
residents on energy efficiency, conservation, and use of ENERGY STAR rated products.

The Energy Office participated in 50 community outreach events including:
• the Office of People’s Counsel Spring 2007 Home Energy Efficiency Expo
• 43rd Annual Senior Citizens’ Day, various Health Festivals,
• 2007 World Children’s Festival on the National Mall
• various community fun days and festivals.

The Energy Office was also involved in DC Public Schools Beautification projects, assisted in the promotion of “CarFree
DC Day”,

Radio spots were developed and created for the major stations in the area (93.9 WKYS, 95.5 WPGC, 96.3 WHUR), as
well as outreach performed for television on the Latino Telemundo station, and various commercials and television spots
on NBC, ABC, CBS, and News Channel 8.

A District-wide marketing campaign was initiated to promote ENERGY STAR products, use of CFL’s, and overall energy
efficiency. DC’s public transportation (Metrobus, Metrorail) were utilized to advertise ENERGY STAR Products, and ads
were placed in the Washington Post, Washington Times, and other printed media.

16 Photovoltaic installations were funded by DDOE Energy Office around the District. 13 locations were residential;
additionally, installations were made at 1 community park, 1 non-profit, and 1 business.

The Green Building Act was passed in 2006 and went into effect October 2007. The legislation applies to all new
construction or substantial improvement of public buildings which were initially funded beginning FY 2008; or resulted from
a property disposition beginning FY 2009; or where 20% or greater of a building’s total construction cost were financed
directly from funds received through the District beginning FY 2010. All such buildings are required to institute building
systems monitoring and maintenance accountability methods. Buildings are also required to be verified by an approved
entity as having fulfilled or exceeded the following green building requirements:
• All non-residential buildings shall be verified as having fulfilled or exceeded the LEED-NC 2.2 standard at the silver
      level.
• All District public schools shall be verified as having fulfilled or exceeded the LEED for Schools standard, or a
      substantially equivalent standard.
• All residential buildings shall fulfill or exceed the Green Communities 2006 standard, or a substantially equivalent
      standard.
• All tenant improvements to facility space of 30,000 square feet gross floor area or larger, shall be verified as having
      met or exceeded the LEED-CI 2.0 standard.
• Priority consideration for the District’s own space needs shall be given to buildings meeting the LEED Silver standard.
Page 34



DISTRICT OF COLUMBIA

For privately owned buildings, as of January 1, 2009, all applicants shall submit the appropriate green building checklist.
After January 1, 2012, all new construction or substantial improvement of buildings 50,000 square feet of gross floor area
or more, must meet green building requirements. Buildings are also required to be verified by an approved entity as having
fulfilled or exceeded the following green building requirements within two years after the receipt of a Certificate of
Occupancy.
• All non-residential buildings shall be verified as having fulfilled or exceeded the LEED-NC 2.2 standard.
• All educational facilities shall be verified as having fulfilled or exceeded the LEED for Schools standard, or an
       equivalent standard.

The Department of the Environment has established a Green Building Advisory Council (“GBAC”) with a general mandate
of monitoring the District’s compliance with the requirements of this Act, and of making policy recommendations designed
to continually improve and update the Act. The GBAC shall issue an annual report of its recommendations including:
• Policy recommendations on how to continually improve the District’s green building legislation, including suggestions
     for additional incentives to promote green building practices;
• The evaluation of the effectiveness of the District’s green building policies and their impact on the District’s
     environmental health, including how to tailor the District’s green building policies to the specific environmental
     challenges facing the District;
• Which green building practices should be included in the biennial revisions of the Construction code; and
• The promotion of green building education, including educating relevant District employees, the building community,
     and the public regarding the benefits and techniques of high-performance building standards.
                                                                                                                   Page 35



FLORIDA

Florida Energy Office
Bob Martinez Center
2600 Blairstone Road
Tallahassee, Florida 32399-2400
Phone: 850.245.8264
Fax: 850.245.2947
Website: http://www.dep.state.fl.us/energy/


The Florida Energy Office (FEO), located within the Department of Environmental Protection (DEP), is the state’s primary
center for energy policy under Governor Crist. In addition to developing and implementing Florida’s energy policy, FEO
coordinates all federal energy programs delegated to the state as well as coordinates the certification process for power
plants and transmission lines. Through the FEO, the State of Florida shapes “Florida’s Energy Future,” focusing on
advanced clean energy sources, energy conservation and efficiency. Florida is actively leading the nation in projects that
promote hydrogen power, solar energy, bio-based fuels, clean vehicles and energy conservation. Learn more at: http://
www.dep.state.fl.us/energy/

Executive Orders
On July 13, 2007, Governor Crist signed three executive orders further demonstrating the State Florida’s commitment to
reducing greenhouse gases. Governor Crist signed Executive Order 07-126, titled “Leadership by Example: Immediate
Actions to Reduce Greenhouse Gas Emissions from Florida State Government”; Executive Order 07-127, “Immediate
Actions to Reduce Greenhouse Gas Emissions within Florida”; and Executive Order 07-128, “Florida Governor’s Action
Team on Energy and Climate Change.” For more information on these three executive orders please visit, http://
www.dep.state.fl.us/climatechange/. The Florida Energy Office aids in the promotion of the goals set forth in these
progressive energy initiatives.

Florida Renewable Technologies & Energy Efficiency Act
Florida’s anticipated growth in energy consumption, together with its experiences during the unprecedented storm
seasons of 2004 and 2005, underscore the state’s vulnerability to interruptions in fuel production, supply and delivery. In
response, Florida has enacted the
Florida Renewable Energy Technologies & Energy Efficiency Act (The Florida Energy Act) – a four year, $100 million plan
to diversify the state’s fuel supply and promote energy conservation and efficiency. By reducing regulatory barriers and
providing economic incentives, the Act Under the Florida energy Act, the Florida Energy Office coordinates:
• Solar Energy Rebate Program
• A Renewable Energy Technologies Grant Program
• Renewable Energy Technolgies Sales Tax Refund Program and an
• Infrastructure Investment Tax Credit Program

Grant Program
Since the inception of the Renewable Energy Technology Grant Program in 2006 over $22 million has been appropriated
to provide renewable energy matching grants for demonstration, commercialization, and development projects relating to
renewable energy technologies. The program was designed to stimulate capital investment in the state and promote and
enhance the statewide utilization of renewable energy technologies, including hydrogen, biomass, solar energy,
geothermal energy, wind energy, ocean energy, waste heat and hydroelectric power.

Biomass: Harvesting Green
Through the Florida Renewable Energy Technologies Grant Program, FEO is providing matching funds for the production
of fuelgrade ethanol from citrus-processing waste, sugar processing waste and other vegetative wastes common to
Florida. Grant funding is also supporting a project to build and operate a biomass gasification system that will use wood
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FLORIDA

chip wastes from local forestry operations, paper and wallboard wastes currently landfilled and pelletized switch grass to
produce a biogas that replaces the use of natural gas in industrial drying at a wallboard manufacturing plant in Florida. To
further promote the development of green energy from biomass, FEO is participating in the Florida Farm to Fuels Grants
Program coordinated by the Florida Department of Agriculture and Consumer Services.

Sales Tax Incentive
As part of the 2006 Florida Energy Act, three tax incentives programs were created to stimulate the development in
alternative fuels such as hydrogen, biodiesel, ethanol, their associated facilities, and the production of electricity from
renewable energy sources. The statewide sales tax incentive provides a refund of paid taxes of up to $2 million for each
fiscal year for Florida citizens that invest in hydrogen-powered vehicles, materials incorporated into hydrogen powered
vehicles, and hydrogen-fueling stations. An additional $1 million in sales tax paid each state fiscal year for all taxpayers
has been allocated to provide incentives to commercial stationary hydrogen fuel cells, and an additional $1 million in sales
tax paid for materials used in the distribution of biodiesel and ethanol, including fueling infrastructure, transportation, and
storage. Gasoline fueling station pump retrofits for ethanol distribution are also eligible for tax incentives through this
program. This program is administered by the Florida Department of Revenue.

Tax Credit Incentive
As part of the 2006 Florida Energy Act, the Infrastructure Investment Tax Credit Program provides hydrogen investors tax
credits for up to 75 percent of capital, operation, maintenance, research and development costs, up to a limit of $3 million
per state fiscal year. To be eligible, costs must be in connection with an investment in hydrogen-powered vehicles and
hydrogen vehicle fueling stations. The Infrastructure Investment Tax Credit Program also provides tax credits to those
investing in commercial stationary hydrogen fuel cells for up to 75 percent of capital, operation, maintenance, research
and development costs, up to a limit of $1.5 million per state fiscal year, with a limit of $12,000 per hydrogen fuel cell. Tax
credits are also available for up to 75 percent of capital, operation, maintenance, research and development costs, up to a
limit of $6.5 million per state fiscal year. This program is administered by the Florida Department of Revenue.

Hydrogen: Breaking Ground on the Future
On May 23, 2007 Governor Charlie Crist and Florida Department of Environmental Protection Secretary Michael W. Sole
joined executives from Ford Motor Company, Chevron Technology Ventures, Progress Energy Florida, Orlando
International Airport, Orange County Convention Center and local officials to officially open the state’s first hydrogen
energy demonstration station (insert picture). The station is located in bustling metro-Orlando and fuels eight Ford V-10, E-
450 hydrogen-powered shuttle buses. Florida became the first domestic customer for Ford’s new 12-passenger hydrogen
shuttle bus. With a range of up to 150 miles and near-zero emissions, including carbon dioxide, the Ford hydrogen shuttle
bus uses an internal combustion engine designed to run on hydrogen fuel instead of gasoline. This demonstration project
lays the foundation for a “hydrogen hub” in Central Florida where hydrogen fleets will be concentrated with a series of
fueling stations to demonstrate and accelerate commercialization of the clean technology.

Clean Vehicles: Pollution Free Transportation
The Ford Motor Company supplied the Florida Department of Environmental Protection (DEP) with three hydrogen-
powered Ford Focus Fuel Cell Vehicles. One of the hydrogen-powered vehicles provides park rangers with a pollutionfree
ride during everyday operations at Wekiwa Springs State Park, and two more vehicles are utilized by DEP’s Central
Regulatory District for field inspections. DEP’s Office of Greenways & Trails is pumping biodiesel, a new “green” fuel made
from homegrown vegetables, vegetable oil, fats and grease into its fleet of field trucks. The field vehicles tow tractors and
heavy-duty maintenance equipment over the rugged terrain of the 110-mile Cross Florida Greenway and paved highways.
In addition, over 10% of DEP’s fleet are hybrid-electric vehicles and over 25% are of flexfuel vehicles capable of running
on clean, ethanol fuel.
                                                                                                                  Page 37



FLORIDA

Solar Rebate Program
This program was established to provide rebates for the purchase and installation of solar energy systems in homes and
businesses. Since it’s inception in 2006 $6 million has been appropriated to provide rebates to any resident of Florida who
purchases and installs a new solar energy system from July 1, 2006, through June 30, 2010 is eligible for a rebate on a
portion of the purchase price of that solar energy system. The rebate amount is set at $4 per watt based on the total
wattage rating of the system. The maximum allowable rebate per solar photovoltaic system installation is: Twenty
thousand dollars for a residence and One hundred thousand dollars for a place of business, a publicly owned or operated
facility, or a facility owned or operated by a private, not-for-profit organization, including condominiums or apartment
buildings. Authorized rebates for installation of solar thermal systems shall be as follows: Five hundred dollars for a
residence; Fifteen dollars per 1,000 Btu up to a maximum of $5,000 for a place of business, a publicly owned or operated
facility, or a facility owned or operated by a private, not-for-profit organization, including condominiums or apartment
buildings; Authorized rebates for installation of solar thermal pool heaters shall be $100 per installation. Since the
inception of the program in 2006, 5,005 rebate applications have been received, with an estimated electrical energy
savings of 48,757,200 kilowatts hours.

Sunsmart: Lighting the Imagination
The SunSmart Schools program installs photovoltaic systems on approximately two dozen schools across Florida
annually. It provides a hands-on learning opportunity at school for science students while providing the local community
with a distributed, renewable power source. Systems are grid-connected and feed excess power to the local electrical grid
when school is not in session. In its first year, the Florida Solar Energy Systems Rebate Program provided $2.5M in
rebates to homeowners and business for the installation of solar photovoltaic panels, solar water heating systems and
solar pool heating systems deferring an estimated 25,626,430 kWh of energy from the electric grid.

Strategic Planning: Florida’s Energy Future
The Florida Department of Environmental Protection (DEP) is a key agency in the implementation of Governor Crist’s
Executive Orders on climate change. DEP serves as staff for the Governor’s Action Team on Energy and Climate Change
which is charged with developing a plan to reduce greenhouse gas emissions and for purposing legislation for the Florida
Legislative Session. Florida’s emerging energy strategy will need to address the state’s current and future energy needs
while addressing the need to reduce greenhouse gases, eliminate regulatory barriers to renewable generation, diversify
energy sources, encourage conservation and provide economic incentives to develop alternative energy technology.
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GEORGIA

Georgia Division of Energy Resources
233 Peachtree Street, NE
Harris Tower, Suite 900
Atlanta, GA 30303-1727
Phone: 404.584.1000
Fax: 404.584.1069
Website: http://www.gefa.org/


                                        State Energy Program (SEP) - Funding
                              State Energy Program (SEP) - U.S. Department of Energy

       State FY           Federal SEP Grant            Cost Share            Total State Match           Cost Share
       FY 2002                 $833,000                    79%                   $175,000                   21%
       FY 2003                $1,012,000                   78%                   $225,000                   22%
       FY 2004                $1,018,000                   78%                   $225,000                   22%
       FY 2005                 $996,000                    80%                   $200,000                   20%
       FY 2006                $1,010,000                   80%                   $205,000                   20%
       FY 2007                 $769,000                    67%                   $250,000                   33%
       FY 2008                $1,058,000                   77%                   $250,000                   23%
        Totals                $6,696,000                   77%                  $1,530,000                  23%

                                        State Energy Program (SEP) - Activities

State Energy Strategy
In early 2006 Governor Sonny Perdue directed the Georgia Environmental Facilities Authority to lead an inclusive,
statewide stakeholder process to develop the first comprehensive State Energy Strategy for Georgia.
The Strategy consists of eight chapters that cover broad topics such as energy reliability, energy supply, energy demand
and the environment. More information is available at www.georgiaenergyplan.org.

In 2007, building upon the work and relationships developed during the drafting of the Strategy, staff began work on the
Governor’s Energy Challenge 2020, Governor Perdue’s long-term energy direction for the state. SEP staff helped draft
the outline of the Governor’s five-component energy efficiency challenge and will participate in further writing and
implementation. The five components of the plan are: 1) Public Education 2) Challenge to Business and Local
Government 3) Excellence in Energy Awards 4) State Leadership 5) Clean and Green Energy Industry Development.

State Government Activities
SEP staff have participated and coordinated several energy related initiatives that foster cooperation and leadership by
example throughout state government. Since 2000, SEP staff has coordinated the Energy and Environment Task Force, a
twelve agency member working group that meets quarterly to learn about various energy and environmental topics as well
as opportunities to collaborate with one another. 2007 topics include ideas for collaborative projects for the Task Force,
the comprehensive statewide water management plan and climate change and the new Georgia greenhouse gas
inventory.
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GEORGIA

State Facilities Energy Council
SEP staff supports the State Facilities Energy Council, a body created in 2005 by Executive Order to manage all aspects
of state government energy procurement and consumption. GEFA continues to manage the state’s utility tracking
software, which monitors utility consumption and expenses for over 4,000 state electricity accounts and 17,000 facilities.
The Council also continues to manage the centrally operated natural gas purchasing strategy to minimize exposure to
price fluctuations and continues assessing opportunities to comprehensively incorporate energy efficiency into new and
existing state-owned facilities.

Georgia Energy Review
SEP staff continues updating the Georgia Energy Review, an annual publication that provides Georgia specific energy
information, including price and consumption data, market and regulatory information, environmental impacts and energy
efficiency and renewable energy activity information. To date, staff has updated and significantly expanded its analysis of
the natural gas industry in Georgia from 1985-2005. Staff has become a peer reviewer for EIA data.

Recycling and Waste Reduction Grants (RWR)
SEP staff contributed to the review of 19 applications and the selection and awarding of 7 grants totaling $200,000 for
Georgia’s 2007 RWR grant cycle. Staff launched the 2008 RWR cycle, issuing a request for applications November 30,
2007. $223,000 in funding is available to Georgia local governments.

E85 Infrastructure Grant Program
Staff helped design and issue a request for application for the E85 Infrastructure Grant Program.
$400,000 in funding is available to fuel retailers for installing, replacing, and converting motor fuel storage equipment to
facilitate storing and dispensing E85 fuel for retail sale. Applications are due January 4, 2008.

Energy Emergency Preparation
As the state energy office, GEFA is responsible for developing and maintaining Georgia’s Energy Emergency Plan. GEFA
works with partners in state government as well as with other states and federal agencies to ensure that coordinated
planning and communications are established and maintained during an emergency situation. GEFA is committed to
providing timely and high quality information during periods of energy shortages or disruptions.

In 2007, SEP staff began work with Georgia Department of Agriculture to develop a plan to provide fuel in the event of a
coastal hurricane or other emergency. Staff activities in support of the emergency plan include compiling a database of
state, city and county diesel, gas, and propane tanks, developing a communications plan for the tank owners and
contracting with a petroleum products distributor to store fuel during hurricane season. Staff plans to participate in a
practice exercise associated with this plan in early 2008.

Residential and Commercial Buildings
Despite the state of the current housing market, Georgia continues to successfully transform the market for energy
efficient housing. In 2007, Georgia’s flagship program, EarthCraft House, certified 559 units, both single and multifamily,
including several that qualified for the federal tax credit and consume 50% less energy than a home meeting Georgia’s
energy code. Demand for EarthCraft House products continues to expand with guidelines for light commercial buildings,
modular homes and architects in development. While SEP support continues to be essential to the success and operation
of EarthCraft House, the program has dramatically improved its ability to sustain itself through user fees and other sources
of funding.

GEFA also leverages SEP partners and resources to support its efforts in the K-12 sector through the Southeast Rebuild
Collaborative, which provides information and technical assistance to the K-12 sector in Georgia and encourages them to
integrate energy efficiency in new and existing facilities.
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GEORGIA

Agriculture
Georgia is one of our nation’s leaders in agricultural production, leading output in areas including poultry and peanuts.
The University of Georgia College of Agricultural and Engineering Sciences is transforming Georgia’s agricultural
population into more efficient energy consumers through a number of programs. Trainings and technical assistance reach
county extension agents, resource conservation and development councils, and individual farmers. In 2007, UGA offered
workshops and training in a number of areas including poultry ventilation, irrigation, dairy energy conservation and
alternative energy opportunities, conservation tillage, energy saving techniques for chemical application and curing of
tobacco, as well as others. Also in 2007, two aerial applicator fly-in clinics were conducted with 12 aircrafts attending with
annual coverage of over 475,000 acres of crop land annually. Utilizing the energy saving practices learned in these clinics
would save growers approximately $356,000 annually.

Industry
In 2007, GEFA launched another program in partnership with Georgia Tech, the Southeastern Partnership to Accelerate
Industrial Energy Efficiency. GTRI will partner with the North Carolina State Energy Office and Mississippi State University
to offer technical assistance and workshops in the following areas: the development of alternative energy sources for
target applications of waste hydrogen and landfill gas, enhanced implementation of energy saving recommendations from
Industrial Assessment Center and Energy Savings Assessment recommendations, and energy savings opportunities for
specific facilities within the poultry and chemical industries.

GEFA and its partner continue to aggressively promote DOE Save Energy Now assessments to Georgia industry and
recognize those companies that implement recommendations. GEFA recently issued a press release identifying
accomplishments of six Georgia based companies that saved between 7.5% and 15% of their energy through energy
efficiency improvements. Additionally Georgia was recently awarded an additional $50,000 to conduct another seven
Energy Saving Assessments.
                                                                                                                 Page 43



GUAM

Guam Energy Office
PO Box 2950
Agana, GU 96910
Phone: 671.646.4361
Fax: 671.649.1215
Website: http://www.guamenergy.com/


The Guam Energy Office (GEO) is committed to understanding the energy issues of our island. GEO is a line agency
within the Executive Branch that uses SEP funds to conduct numerous energy efficiency and renewable programs focused
on reducing energy consumption, increasing energy efficiency, reducing the use of fossil fuels and protecting the
environment for the benefit of the island community and the future generation.

                             State Energy Program (SEP) - U.S. Department of Energy

                                     Funds Awarded and State Cost Share—Guam

      State FY           Federal SEP Grant            Cost Share            Total State Match           Cost Share

       FY 2005                $235,000

       FY 2006                $235,000

       FY 2007                $177,000

        Totals                $647,000

Energy Compliance Policy in Public Buildings—Through the support of the Governor’s Executive Order 2003-08
mandating Government of Guam agencies to adhere to an energy compliance policy, agencies achieved a significant
energy savings by cutting down over-all energy consumption by 11.3% through energy conservation measures and energy
efficient upgrades/retrofits.

Change-a-Light, Change-the World Campaign—The 2007-2008 campaign kicked-off with the Governor proclaiming
October 12, 2007 as “Change a Light, Change the World Day.” The turnout from 2006-2007 campaign yielded 1,030
pledges from homeowners resulting to energy savings of 2,200,728 kWh, $352,116 in energy costs and prevented
3,472,780 lbs. of greenhouse gas emissions. This year, total energy savings is expected to surpass previous campaign by
20% within the campaign period.

Education and Community Outreach Program—GEO continues to provide educational programs through public events
and web-based information:

•   Energy Hog School Tour—The office has concentrated its outreach education efforts in the elementary school
    (grades K-5) on island, utilizing the U.S. Department of Energy, “Energy Hog” Campaign, empowering students to
    take the lead and encourage their teachers and families to bust all wasteful energy habits by practicing simple energy
    conservation measures at home and school. During the month of May and June 2007, mini-trainings were held at 40
    elementary schools, public and private and attended by 3,000 students. The mini-trainings were held both in
    classrooms and in cafeteria to accommodate students.
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GUAM

•    Middle School (Grades 6-8) Outreach Program—GEO will be conducting several outreach education presentations
     with the public middle schools (grades 6-8) on island from January through March 2008, focusing on the concept of
     “Green Schools Program”. Green Schools Program engages students, teachers, administrators, school personnel,
     and community partners to engage in actions that make individual behaviors, as well as school operations, more
     sustainable. Additionally, GEO will provide teachers with lesson plans to administer to students during the normal
     school hours. These activities/exercises has increased and enhanced students’ knowledge in the area of Science,
     Math, and Language Arts. This program reaches students because it provides the rare opportunity for students this
     age to something tangible and meaningful for their schools and community.

•    Green Energy Conference 2007—GEO conducted an energy conference and exhibit attended by the energy
     business sectors, commercial/industrial industries, construction industry and the government on discussing key
     issues and challenges in energy and sustainability for the island community. Participants exchanged knowledge and
     views on the current technologies, discussed strategies applied in different parts of the world that may be feasible for
     adoption locally.

•    Energy Expo 2007—GEO sponsored an energy exposition in conjunction with the conference that showcased 14
     local businesses that carry, install and feature alternative, renewable, and distributed energy generation, energy
     efficiency and conservation, pollution prevention and recycling, and green building construction.

ENERGY STAR—Guam Energy Office is pursuing to start promoting the ENERGY STAR program, a joint effort with
Guam EPA and Guam Housing Corporation that encourages residences, schools, organizations, government agencies,
and businesses to invest in energy efficiency products and equipment to lower their energy consumption and save dollars
on utility costs.

Energy Emergency Preparedness Plan—The Guam Energy Office, Office of Civil Defense and Guam Homeland
Security are currently establishing the Energy Emergency Preparedness plan. The Guam Energy Emergency
Preparedness Plan has been prepared despite the absence of a specific statute which would grant the Governor or his
authorized representative a clear authority in the event: when shortages of petroleum products occur or are anticipated; to
control the distribution and sale of petroleum products in the Territory; to procure such products, and to impose rules that
will provide extraordinary measures for the conservation of petroleum products and for their distribution and sale in an
orderly, efficient, and safe manner. Draft legislation is being prepared by the GEO for submission to and hopeful passage
by the Guam 29th Guam Legislature. In the meantime, a new Executive Order will be signed by the Governor giving the
Guam Energy Office clear authority to accomplish the mission and strategies and to include a Task Force to establish
such guidelines and monitor compliance. The Guam Energy Emergency Preparedness Plan is in its final draft form and
waiting for the Legislature draft form in reference to the Guam Administrative Rules relating to Procurement, Control,
Distribution, and Sale of Petroleum products during fuel shortage. After this process is finalized, the original Guam Energy
Emergency Preparedness Plan will be forwarded to Homeland Security Office of Civil Defense to incorporate with the
Territory Emergency Disaster Preparedness Plan.

*** Other annual activities such as the Poster & Essay Contest and Edean Alentos Para Famaguon Newspaper (formerly
Kid's Energy Newspaper) were held to bring energy conservation and efficiency into the school curriculum. Other
community outreach activities such as Public Service Announcements both both in radio and television station, print
messages in local newspaper and magazines, interactive Energy Display Booths at various functions, Training regarding
energy efficiency, Kuentos Alentos (Office newsletter) and GEO Website inclusive of Guam Building Energy Code were
carried-out to further assist reducing energy costs to the island community

Funding from State Energy Program is vital for GEO to function effectively as prime mover in providing guidance and
direction to the government and the island economy on all energy-related matters. Funds leveraged from SEP have
enabled the Office to be a productive element of the government of Guam and the neighboring islands.
                                                                                                                  Page 45



HAWAII

Hawaii Department of Business, Economic Development and Tourism
235 South Beretania Street, Room 502
P.O. Box 2359
Honolulu, HI 96804
Phone: 808.587.3812
Fax: 808.586.2536
Website: http://www.hawaii.gov/dbedt/info/energy/


Energy for Tomorrow
The State of Hawaii market transformation efforts are in strong alignment with national energy policy to reduce oil
dependency. Of all states, Hawaii has the greatest sense of urgency to accelerate this transformation because of our
extraordinary dependence on oil as an energy resource. Dependence on oil remains a top security issue for the Governor.
Governor Linda Lingle’s Energy for Tomorrow strategic energy initiatives, adopted into statute, forms the basis for this
integrated strategy to reduce oil dependence. The collective programs address energy efficiency, accelerate renewable
energy development, utilizes the capacity of our agriculture sector to produce locally-grown fuels, encourages investment
and development of advanced technology to lay a firm base for future investments, and provides for greater transparency
in energy transactions to enable sounder consumer choices. All of these programs align with major initiatives within
USDOE, and could serve as models for deployment of USDOE technologies in the real world laboratory that is Hawaii.
Key aspects of the legislation include:

•   Lead by Example: The State’s Lead by Example (LBE) initiatives advanced considerably during 2007. A report to
    the Legislature will cover achievements in the 2006-07 fiscal year.

    During that period, the state sponsored or facilitated 89 events. This included training or technical assistance
    sessions, case studies and meetings to gather data or inventory state energy use. Some of these events, such as
    statewide energy efficiency seminars for businesses, were open to the public. Others were targeted for specific
    professionals. A total of 3,433 people attended these activities, including a high percentage of personnel from state
    executive agencies. Representatives from the four county governments also participated.

    Four state buildings have received ENERGY STAR awards. ENERGY STAR certified buildings rank in the top
    quartile of the U.S. Environmental Protection Agency’s performance rating system calculated from actual energy use.
    ENERGY STAR certified buildings also must qualify for thermal comfort, while meeting lighting, ventilation, and
    indoor air quality requirements.

    Other state buildings are being recognized for their efficiency features. The new Waipahu Intermediate School
    cafeteria garnered the state Department of Education’s and Department of Accounting & General Services first-ever
    LEED (Leadership in Energy and Environmental Design standard) Certified award. The cafeteria design features
    100% natural lighting of the dining area, a 15% reduction in annual energy consumption, a 5% reduction in irrigation
    water use, and natural ventilation. The innovative Hawaii Gateway Energy Center in Kona, the only building in the
    state to have been awarded LEED Platinum standard, has garnered further accolades: it was named one of the 10
    best green buildings in the USA for 2007. The recognition came from the Committee on the Environment of the
    national organization of the American Institute of Architects, which announced the honor on Earth Day.

•   Renewable Energy for Electricity Generation: Strong interest in renewable energy continues, with several utility-
    scale projects announced and many distributed generation systems (particularly solar) being installed on-site by
    businesses and homeowners.
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HAWAII

Rebuild Hawaii/Energy Performance Contracting
The Rebuild Hawaii program, begun under the USDOE’s Rebuild America Program, has proven an effective delivery
platform for multi-agency programs and multi-partnership projects. The Hawaii role model—unique in involving federal,
state, local governments, all utilities, the private sector, non-profits, and professional organizations has created an
effective project development and information sharing network with more than 300 participants. Since 1997, SEP funds,
including Special Projects, for Hawaii’s Rebuild program have aggregated $1.5 million. Rebuild Partners have provided
another $2.2 million in matching and leveraged funds. Overall, for every $1 of USDOE funds received, Hawaii’s Rebuild
partners have provided $1.50. Rebuild Hawaii projects, which include energy performance contracts, have an estimated
annual energy savings of 49.8 MWH, valued at $9.3 million. SID is providing technical assistance to the Hawaii Public
Housing Authority (HPHA) to implement an energy performance contract for 5,363 federally-supported residential units in
68 projects. Two significant studies were completed this year: (l) economic and technical feasibility study of the use of
methane gas from an adjacent landfill to fuel a combined heat and power generator at Barking Sands, Kauai; (2) Analyses
of economic, environmental, and occupant benefits of sustainable design for State of Hawaii k-12 public school facilities.

Tropical Codes Project/Model Energy Code
A USDOE Special Projects grant funded the writing and promulgating of a Tropical Energy Code for Hawaii, Guam, the
Northern Mariana Islands, Puerto Rico, and the Virgin Islands. Key elements include integrating high efficiency measures
with hurricane-related building improvements and crediting the albedo effect of building envelopes. The main impact in
Hawaii in commercial buildings will increase lighting efficiencies by about 25%. The estimated savings for air-conditioned
buildings will be in the 10%-12% range. In the residential sector, the Code’s proposed insulation and window
requirements are estimated to reduce energy use in air-conditioned homes by 20%-25%.

The SEP personnel budget for the Model Energy Code from inception in 1989 through 2007 was approximately $762,000.
Statewide building construction under the MEC will result in a total energy efficiency investment of $98.8 million through
2022, or $130 of energy efficiency investment for every $1 of SEP funding.

Bioenergy and Biofuels
There have been announcements of commercial biofuels projects to produce ethanol and electricity from sugar cane on
Kauai and biodiesel production on Oahu and Maui. There are also significant research and development projects
underway by the Hawaii Agriculture Research Center; Hawaii Natural Energy Institute; and the College of Tropical
Agriculture and Human Resources and College of Agriculture, Forestry and Natural Resource Management of the
University of Hawaii. Projects to develop and test feedstocks such as jatropha, oil palm, tropical oils, and algae for
biodiesel have received funding from public and private sources. In addition, a comprehensive State-wide Biofuels
Assessment is underway, with completion scheduled in 2009. Finally, a Bioenergy Master Plan and Feedstock
Development Program are under development.

Hawaii Energy Strategy (HES)
The Hawaii Energy Strategy 2007 is a major revision of previous energy plans. The project has updated the ENERGY
2020 model of the Hawaii energy system and projected Hawaii’s energy future under three possible scenarios. Strategic
pathways and policy options are identified. A Biofuels Summit held in August 2006 was part of this process. Three public
stakeholder meetings were held and a fourth meeting, held in March 2007, reviewed the final draft report. The final
strategy is expected to be issued in 2008.

Energy Emergency Preparedness
The updated State of Hawaii Energy Emergency Preparedness Plan is being finalized for release in 2008.

The State of Hawaii Energy Emergency Preparedness Plan and Reference Book was developed by the DBEDT Strategic
Industries Division to set forth the established policies, principals, guidelines, and procedures to be used in response to
energy supply disruptions, whether market-related or based on any type of disaster. It incorporates county plans for the
                                                                                                                Page 47



HAWAII

purpose of coordination and is consistent with Hawaii State Civil Defense plans, the National Incident Management
System (NIMS), the National Response Plan (NRP), and the National Infrastructure Protection Plan (NIPP). SID
participates in Federal and State Civil Defense exercises as a review of the EEP procedures.


    State of Hawaii Department of Business, Economic Development & Tourism—Strategic Industries Division
           Energy Program Budget by Function (In Thousands) for the Fiscal Year Ended June 30, 2007

             Description                        State Funds                Federal Grants                 Totals

Education                                        $200,000                      $19,950                   $219,950

Transportation                                       $0                        $25,000                   $25,000

Buildings                                        $500,000                     $304,869                   $804,869

Industry                                             $0                        $12,500                   $12,500

Electric Power & Renewable Energy               $10,241,000                  $1,245,982                $11,486,982
                 TOTALS                         $10,941,000                  $1,608,301                $12,549,301
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IDAHO

Idaho Energy Division
322 E Front Street
P. O. Box 83720
Boise, ID 83720-0098
Phone: 208.287.4800
Fax: 208.287.6700
Website: http://www.idwr.idaho.gov/energy/


                                          Idaho Energy Efficiency Initiatives

Research and Demonstration—In 2005 Idaho received a State Technology Advancement Collaborative (STAC) grant
through NASEO to do research and training development on high performance heat pumps and air conditioners using
R410A refrigerant. The project involves a long term field study, bench testing at Purdue University, sophisticated
modeling software development, heat pump and air conditioner commissioning improvement, and enhanced
commissioning training development. Partners include the Oregon Department of Energy, Washington State University
Energy Program, Bonneville Power Administration, Energy Trust of Oregon and Northwest Power and Conservation
Council. The primary technical contractor is Ecotope, Inc., Seattle, Washington. The long term monitoring results can be
found at: http://www.ezsim.com/STAC/.

STAC is integrated with the Building America work that OER is doing under contract to DOE. The Office of Energy
Resources promotes high performance building technologies using ENERGY STAR Homes NW and Home Performance
with ENERGY STAR as vehicles. OER leverages resources from the Northwest Energy Efficiency Alliance, BPA and
Idaho Power Company to study advanced cooling technologies, cold climate heat pumps and ductless heat pumps.

Residential Efficiency—OER operates ENERGY STAR programs for new manufactured homes and new site-built
homes. During the fiscal year we certified 436 manufactured (HUD Code) and 401 site-built ENERGY STAR homes. We
are also developing Home Performance with ENERGY STAR for existing homes. During the fiscal year 4 homes were
certified, and 8 additional homes were pre-tested. 4 projects were financed through OER’s low interest loan program.

High Performance Commercial and Institutional Buildings—The Office of Energy Resources has a long-term strategic
goal of achieving high performance in schools and public buildings. OER provides models of sophisticated RFQs that
combine performance contracting and design –build authority with integrated design principles, high performance criteria
and building commissioning to school districts and local governments. As a result of this approach, Caldwell School
District recently passed a bond to build Idaho’s first high performance elementary schools using OER’s high performance
design-build process. These plans were featured at a recent Statewide Conference of School Superintendants.

Industrial Efficiency—OER is a pioneer in industrial efficiency in the food processing and agricultural chemicals
industries. During the year OER’s industrial efficiency staff became certified to do Best Practices Pump Assessments.
OER conducted eighteen (18) Energy Saving Assessments (ESAs); fourteen (14) pumping system and four (4) steam
system assessments. Approximately 10 million kWh’s of annual electrical energy savings, and another 278,200 MMBTU
of annual natural gas savings have been identified and are in various stages of implementation. The industrial partners
who participated and received the ESAs from OER include: Amalgamated Sugar Company; JR Simplot Company; Lamb
Weston (Con Agra), and; Davisco Foods.
                                                                                                                   Page 50



IDAHO

                                              Rural Idaho Energy Initiatives

Renewable Energy and Alternative Fuels—Idaho lawmakers passed legislation and appropriated $690,000 for FY 08
that would enable retail fuel dealers to invest in qualified ethanol and biodiesel infrastructure projects dedicated to
providing biofuels to their customers. Dealers must provide biofuel blends at or above 10 percent ethanol (E-10) and 5
percent biodiesel (B5). Awards will be provided for up to 50% of project costs, not to exceed $100,000 per application and
with a minimum total project cost of $1,000. Funds can be used for installing new fueling infrastructure dedicated to
offering biofuels for retail sale, or for upgrading existing fueling infrastructure that is documented as being incompatible
with biofuels, including cleaning existing storage tanks.

Geothermal—OER hosted four teleconferences/webcasts; attended annual Geothermal Energy All States Summit and
Geothermal Resources Council conference; made geothermal presentations at Jerome schools’ energy days, the Idaho
Environmental Summit and teachers’ in-service sessions. OER staffed booths at three renewable energy venues and
organized and facilitated two the Idaho Geothermal Energy Working Group meetings. OER Conducted tours to Raft River
geo power and Boise geothermal direct use applications, and information outreaches in Murphy and Cascade. OER
Provided funding to Cascade School District for deepening a geothermal well for use as a ground source heat pump.

Solar—OER hosted nine teleconferences/webcasts; sponsored solar electric training for Idaho science teachers, staffed
booths/exhibits at four renewable energy venues and provided 36 solar electric project assessment rebates.

Wind—OER hosted four teleconferences/webcast; attended the annual AWEA conference/expo and Wind Powering the
West state summit, where the Wind for Schools program was launched (Idaho was one of several states that will be
promoting this program); attended wind integration workshop at Idaho Power and the Wind Powering the West Wind/
Water Nexus workshop. OER organized and facilitated two Idaho Wind Power Working Group meetings and made
presentations in Twin Falls at community energy venue at the College of Southern Idaho. OER organized a tour at the
Lewandowski Wind Farm, the first commercial grade wind farm in the state.

General Renewables—Prior to the Harvesting Clean Energy conference in Boise, which drew 600 attendees. OER staff
set up three tours: geothermal, bioenergy and wind. Staff provided speakers to two on-farm energy use tracks on solar
and wind power, worked the registration table and made a presentation on geothermal use in the state. Staff organized a
selection committee to recommend five Idaho companies for 2007 Idaho Governor’s Awards for Renewable Energy: solar
electric, wind, geothermal and two bioenergy.

OER staff responded to 1,460 technical/information requests and distributed 1,368 publications. Data for visits to the
various renewable energy websites were not available, but staff often referred callers to various on-line sources of
information.

[SEP Funding FY 07 - $274,000, PVE Funding - $2,602,539]
Page 51



ILLINOIS

Illinois Energy & Recycling Bureau
620 East Adams
Springfield, IL 62701-1615
Phone: 217.785.3416
Fax: 217.785.2618
Website: http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/


                                         Bureau of Energy and Recycling
                                       Small Business $mart Energy Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) Bureau of Energy and Recycling houses the
Illinois State Energy Office. The Bureau seeks to demonstrate the economic development benefits of energy efficiency,
renewable energy, and recycling through a variety of programs and services. Bureau programs show that economic
development, sustainable energy, recycling practices, and environmental protection go hand in hand.


                 Annual         Annual         Annual         Demand            Annual
                 Therms          kWh            MBtu            kW              Dollars        Small Business $mart Energy
                                                                                               Program: Implemented
    2005          7,092         496,686         2,403            436            $98,732
                                                                                               Energy and Cost Savings
    2006         392,781       3,653,564       52,416           1,028          $808,057        Through 2007

    2007         827,252       5,894,242       98,347           1,615         $1,419,296

One of the most successful programs supported by DOE SEP funding is the Small Business $mart Energy (SB$E)
Program. SB$E provides free technical assistance to businesses to reduce their cost of energy. Sixty-two businesses
have already implemented some or all of the energy improvements. These businesses are saving an estimated 5.9 million
kWh and 800,000 therms for cash savings of
over $1.4 million per year, and it is
anticipated that these numbers will increase
sharply as more businesses implement the
SB$E recommendations.

The SB$E program serves most sectors of
for-profit businesses. The SB$E client chart
illustrates the various clients that are
participating in the program. Although the
program does not target manufacturers, 18
percent of the SB$E clients are light
manufacturers. The Bureau’s Manufacturing
Energy Efficiency Program provides energy
efficiency technical services to large
industrial clients.


The recommendations provided to clients include annual unit   Note:                                           energy savings,
                                                              Mixed = Light manufacturing & office/showroom
cost savings, net present value of investment and monthly     CS/SS = Convenience stores & service stations   cash flow.
DCEO reports the estimates of savings for only those          Asst Living = Assisted living facilities
                                                              Crops/GH = Crops and greenhouses
                                                                                                                    Page 52



ILLINOIS

recommendations that were actually implemented. As the number of clients reporting implementation increases, the
associated program costs decrease for each unit of energy and dollar of energy costs saved. The cost to save a unit of
energy is expressed in the table below:


     Program Year                    2005                       2006                       2007
Return on Investment
1 therm saved per                    $2.53                      $0.11                      $0.06
1 kWh saved per                      $0.04                      $0.01                      $0.01            Comparison
                                                                                                            of Program
1 MBtu saved per                     $7.45                      $0.83                      $0.54
                                                                                                            Costs of Unit
I kW saved per                      $41.09                     $42.48                     $32.70            Energy
                                                                                                            Savings for
$1 saved per                         $0.18                      $0.05                      $0.04            Program
Projects & Implementation                                                                                   Years 2005
                                                                                                            Through 2007
Businesses Assisted                   31                         89                         156
Planning Implementa-                  13                         18                          27
tion
Already Implemented                    8                         36                          62
Not Implemeting                       10                         13                          21


SB$E Success Stories
Buckley Growers, a greenhouse business in Springfield, contacted SB$E for assistance in analyzing the feasibility of a
heat recovery project at their new Taylorville operation. The Five Oaks Disposal Facility in Taylorville proposed to operate
a landfill gas-to-power generation plant and sell waste heat from the plant to a new Buckley Growers facility to be located
next to the plant. The SB$E analysis found the proposal to be economically feasible and identified energy savings of
about 329,000 therms per year for Buckley Growers. In addition to this assistance, SBSE provided technical support to
Buckley growers in their successful application for a $250,000 USDA Section 9006 grant award.

SB$E conducted a plan review and energy analysis of the Burnham Tower, an 18 story tower with 238 apartments and a
four story mixed use wing project to be built in Champaign. Based on the recommendations of the study, the developer is
incorporating Low-E windows, high efficiency lighting, and ventilation heat recovery systems. The combined energy
savings in the all-electric building are about 1,700,000 kWh annually. Peak electric demand reduction is estimated to be
approximately 860 kW (about 30 percent of the base case).

SB$E provided energy analyses of seven Senior Suite properties in the Chicago area. The corporation immediately
implemented many of the low cost/no cost options and is saving over $54,000 per year by reducing their energy
consumption by over 23,000 kWh and 15,000 therms.

SB$E provided suggestions for critical airflow and humidity control of a new facility for commercial printer, Letterkraft
Creative Services (LKCS). LKCS installed 120 tons of geothermal providing heating, cooling, radiant floor heat and ice
melt capability for sidewalk and loading docks. Additionally, LKCS installed temperature sensitive occupancy sensors,
energy recovery ventilators and daylighting to increase the energy efficiency savings.
Page 53



INDIANA

Indiana Office of Energy and Defense Development
101 W. Ohio Street
Suite 1250
Indianapolis, IN 46204
Phone: 317.232.8939
Fax: 317.232.8995
Website: www.energy.in.gov


The Indiana Office of Energy & Defense Development (OED), under the leadership of Lieutenant Governor Becky
Skillman, is responsible for Indiana's energy policy. That policy is outlined in the state's strategic energy plan, Hoosier
Homegrown Energy. The Energy Division of OED remains in charge of the State Energy Program, which establishes grant
programs funded by the U.S. Department of Energy (DOE). OED has established partnerships on a state level in order to
promote the use of local resources, such as clean coal and agricultural products to create energy in the form of electric
generation, synthetic natural gas and alternative transportation fuels.

A Busy 2007
With support from OED, the state’s wind industry is blossoming quickly. Indiana’s first wind farm is currently under
construction in north central Indiana. Between the project currently under construction, and one moving quickly towards
the construction phase, Indiana may soon have 880 Mw of electricity production from wind. There are even more Indiana
wind projects in development.

Indiana Governor Mitch Daniels believes the states growing energy issues will only be resolved through a multi-faceted
approach, including the use of Clean Coal technology. Support from OED is helping move the Duke Energy Edwardsport
Integrated Gasification Combined Cycle (IGCC) power plant closer to reality. This plant will be Indiana’s first new baseload
power plant in 20 years.

Legislation
In 2007 the Indiana General Assembly enacted a Tax Credit for purchasing EnergyStar rated appliances. It is a $100
credit per household. It goes into effect in January, 2009. The Legislature also expanded the Clean Coal Tax credits
already in place to include Synthetic Natural Gas Projects. This provides 10% investment credit on first $500 million, 5%
above $500 million, using Indiana based coal. The Cellulosic Ethanol Tax Credit was created. This provides $20 million for
production of 20 million gallons/year of cellulosic ethanol. As the next step in making Biofuels more accessible to
Hoosiers, legislation to create Biofuels Infrastructure program was passed. The General Assembly provided $1 million per
year for E85 infrastructure investments limited to $5,000 per installation.

Programs
In Fiscal Years 2007 and 2008, OED awarded $2.7
million in grants for a variety of energy related programs
and projects. Those grants were leveraged into over $21
million local, public and private dollars among the
programs funded:

The Alternative Power and Energy grant program: During
fiscal years 2007 and 2008, 97% of the APE Grant project
costs were leveraged. At total of $715,655.80 were
funded to 21 projects. The APE Grant Program provides
cost share grants to Indiana’s public, non-profit and
                                                                                                                     Page 54



INDIANA

business sectors for the purchase of alternative energy systems that will help offset fossil fuel usage and serve as an
educational tool.

Alternative energy systems that utilize the following technologies/resources to produce electricity and/or thermal energy
are eligible for grant funding Wind Power, Solar electricity, Solar Domestic Water heating and Biomass.

Biomass Feasibility Study: The purpose of this grant program is to develop technically and economically feasible
biomass-to-energy projects. These studies will serve as a foundation for applications for federal farm bill funding through
the U.S. Department of Agriculture Section 9006 program.

Geothermal Heat Pump residential Rebate: The Geothermal Heat Pump Residential Rebate program offers
homeowners a rebate of up to $2,000 for the purchase and installation of Geothermal Heat Pumps (GHPs) in existing
Indiana residences. GHPs make use of a clean, renewable energy resource to reduce home energy consumption and
costs for heating, cooling and water heating by 25–50% or more. Furthermore, GHPs are a homegrown energy
technology that create and maintain skilled manufacturing and installation jobs in our state. A total of $500,000 is available
for this program.

                                                                            Guaranteed Energy Savings Contract
                        Guaranteed Savings v. Actual Savings                (GESC): A guaranteed energy savings contract
                                                                            is an agreement between a qualified provider
                       120000000
                                                                            and a building owner to reduce the energy and
                       100000000                                            operating costs of a building, or a group of
   Dollars 1991-2007




                       80000000
                                                                            buildings, by a specified amount. The Indiana
                                                                            Office of Energy & Defense Development
                       60000000                                             coordinates GESC agreements for Schools and
                       40000000                                             public buildings. According to the Dept. of
                       20000000
                                                                            Energy, a typical school district with 4,000
                                                                            students pays over $400,000 on energy-related
                              0                                             utilities each year. Energy-efficient design
                                   Guaranteed Savings   Actual Savings      improvements provided under a GESC could
                                                  Savings                   save over $100,000 annually.

                                                                                 Green Power Purchase: The State of Indiana
is now requiring that 7 percent of its electricity used at State facilities in Marion County come from Renewable sources.
This was established in February 2007. Indianapolis Power and Light has partnered with the Wabash Valley Power
Association to buy Renewable Energy Certificates for the power generated at a landfill methane recovery facility. The
percentage is set to rise to 8 percent in 2008 until eventually reaching 20 percent in 2020.

BioTown, USA: The BioTown, USA project, shared with ISDA has been moving along in
2007. A new developer (ESG) has been brought in on this project that will allow the town
of Reynolds, Indiana to meet all its energy needs from renewable sources. Waste from
various sources (livestock, industrial, Wastewater) will be used to power the Technology
Suite that will include an anaerobic digester, a gasifier, and a bio-diesel generation
package. It is expected that construction on the Technology Suite will begin in early 2008,
and the first electrical generation will come in late summer, 2008.

Indiana Clean Manufacturing Technology & Safe Materials Institute (CMTI): The
Indiana Clean Manufacturing Technology & Safe Materials Institute (CMTI) is a state-supported institute established and
operated at Purdue University within the School of Civil Engineering. The purpose of the institute is to act as the state’s
Page 55



INDIANA

focal point for coordinating and deploying technical assistance, outreach, education, planning services and research to
facilitate the adoption of pollution prevention/clean manufacturing strategies by Indiana manufacturing facilities. This
project has been completed.

Indiana State Government Fleet Fueling Center: Currently, the State motor pool facility does not have E85 or biodiesel
blended fuels on site. An OED will provide E85 fueling infrastructure for the state motor pool fleet of E85, allowing the
state fleet to, more consistently, fuel with E85, increasing the fleets usage of alternative fuels, currently required by federal
mandates.

Purdue University Technical Assistance Program (TAP): Purdue University Technical Assistance Program is an on-
going program that provides energy efficiency training and implementation services, technology awareness, and
opportunity analysis to Indiana companies. The program assists efforts to reduce energy consumption across the state.
The TAP anticipates by the end of FY 2008 to provide training to over 200 workers from over 90 companies and these
companies will implement energy saving measures that will reduce future consumption in Indiana by 200,000 MMBtus per
year.

The program will continue to work with existing utility and trade association partners as well as recruit and secure the
assistance of additional organizations. Partnerships enable the leveraging of resources to bring maximum impact to the
large energy consumers in Indiana. Additional staff will enable the program to spend more effort developing relationships
with program partners to secure sponsorship and greater cost share.

Indiana Green Building Council: OED provides financial support for this organization, the state chapter of the USGBC
organization. This organization promotes energy efficiency through green building practices.

Public Outreach and Education: Outreach and education activities undertaken by OED are targeted to reach audiences
in the public, industrial, commercial, agricultural and environmental sectors. OED communicates about energy efficiency
and renewable energy programs through monthly newsletters, special events, Web site resources and other forms of
media. Information and resources will be made available to schools and teachers for energy education in the classroom.

Special Projects
E85/B20 for I-65 and Beyond: OED was awarded $1.3M from DOE to coordinate a
multi state project that spans from Lake Michigan to the Gulf of Mexico. 886 miles of
BioFuels availability from Gary, Indiana to Mobile, Alabama will be created through
this project. 31 E85 and five B20 pumps are funded under this project in four states.
The primary objective of this project is to establish a network of E85/B20 refueling
stations that span from Lake Michigan to the Gulf of Mexico. A second goal of this
project is to share Indiana’s biofuel strategy and successes and replicate them along
southern I-65 where biofuels have not yet taken off.

Clean Cities Coalitions: Clean Cities strives to advance the nations and energy security by supporting local decisions to
adopt practices that contribute to the reduction of petroleum consumption. Indiana has two Clean Cities organizations:
Central Indiana Clean Cities Alliance as well as South Shores Clean Cities. OED has provided Coordinator support to
these organizations for years which allows these coordinators to achieve their yearly goals.

State Industrial Assessment Projects: This new initiative will use an existing program structure to coordinate a new
energy assessment capability that will include system focused audits modeled on the Save Energy Now! Energy Savings
Assessments (ESAs) on a cost share basis. The Industrial Assessment Initiative will recruit three candidates spending
more than $1,000,000/year on energy to participate in an Energy Saving Assessments performed by US Department of
Energy (DOE) Qualified Specialists, send up to five workers through two DOE Best Practices workshops, and receive
                                                                                                                    Page 56



INDIANA

energy efficiency project implementation and documentation assistance. As a result of this new initiative, it is anticipated
that three energy intensive companies will identify and implement projects that result in more than 700,000 MMBtus in
energy savings and $6.7 million in energy cost savings. These projects are coordinated through the Purdue Technical
Assistance Program. Each company will have up to five of its workers trained in how to conduct an energy audit and how
to optimize two common energy intensive systems.
Page 57



IOWA

Iowa Energy & Waste Management Bureau
Wallace State Office Building
502 East 9th Street
Des Moines, IA 50319
Phone: 515.281.8912
Fax: 515.281.8895
Website: http://www.iowadnr.com/energy/index.html


Mission: The mission of the Iowa Energy Office is to increase the use of energy efficiency and renewable energy
technologies while helping to ensure the reliability of the state’s energy operations.

Introduction: This report details the fiscal year results of Energy Section activities, as recorded by the Energy Section
Staff. It includes the results of grant activities completed in partnership with the U.S. Department of Energy as well as
other energy related projects. This is the second of these annual reports.

Iowa Energy Bank: Energy Bank provides the technical and financial assistance necessary for creating energy
management improvements for Iowa public schools, hospitals, private colleges, private schools, and local governments.
The Energy Bank is responsible for saving Iowa government and public facilities hundreds of thousands of dollars on
yearly energy costs. Staff answered 83 client questions, performed 25 marketing visits, conducted 43 energy audits, and
provided 4 technical quality reviews involving 10 buildings. Financing in the amount of $3,591,252 was authorized on
projects expected to save $323,481 per year representing 11.1 year simple payback. This includes two Technical
Engineering Analyses (TEA’s) reviewed in FY06 but financed in FY07).

State of Iowa Facilities Improvement Corporation (SIFIC): SIFIC is a non-profit organization that contracts with the
DNR for staff. It is a full-service program designed to help implement energy efficiency projects in state owned and
operated facilities. SIFIC staff assisted 29 clients with program questions, completed 26 marketing visits, and performed 4
energy audits. We had a Kaizen event for SIFIC staff and stakeholders to reduce the time from site visit to Memorandum
of Agreement (MOA) to TEA. The SIFIC Board of Directors wants to dissolve the corporation, and we are in the process
of transferring responsibilities and monies to the DNR Energy Section to sustain the program.

Blues for Greens 2007: Staff initiated, developed, and led this first annual Department of Natural Resources Earth Day
event in April 2007. The goal of the event was to educate the general public on renewable and alternative energy
transportation options in a fun and relaxed setting. “Blues for Greens,” featured 45 commercially available gasoline-
alternative vehicles from all across the country set to the backdrop of blues bands. Over 3,500 people attended “Blues for
Greens.” In addition, 100% of the funding for the event was generated through corporate sponsorships. The project was a
shining example of how public and private collaboration is necessary for engaging citizens from all walks of life.

Community-Based Digester Outreach: This is a major initiative of the section. Staff visited numerous Iowa communities
and livestock producer groups to introduce the concept of anaerobic digestion to areas having high concentrations of
animal feeding operations, food processing wastes, and other organic waste streams. Staff assisted 117 clients, resulting
in a feasibility study in Denison/Crawford County and the investigation of large-scale, closed-loop digester projects in
Atlantic/Cass County and Washington/Washington County. The Community-Based Digester Outreach Program received
national and international recognition over the past year, with staff presenting at conferences in Missouri, Nebraska,
Minneapolis, Indianapolis, and Atlanta. Staff also presented to a delegation of Italian businessmen and to the German/
American Chamber of Commerce, and published an article describing the outreach program in BioCycle Magazine.
                                                                                                                 Page 58



IOWA

Renewable Energy: Staff assisted 20 clients with solar questions, down from 76 questions in FY2006, probably because
there wasn’t a major solar project in the state in FY2007 (in FY2006 we completed the DOE funded New Bohemia Solar
Project). Staff also assisted 72 clients with wind questions and 19 clients with ethanol questions. Both technical
assistance numbers are down from FY2006 levels, perhaps because wind and ethanol are maturing renewable energy
technologies. Staff assisted 5 clients with questions on combined heat and power (CHP), 9 clients with biodiesel
questions, and 27 clients with biomass questions. Biodiesel and biomass questions are also down from FY2006 levels.

USDA Farm Bill Section 9006: Energy Section staff participated in assisting Iowa farmers and ranchers and rural small
businesses apply for federal funds for the implementation of renewable energy and energy efficiency projects. The
Energy Section and our partners supported 153 grant and guaranteed loan applications in FY2007, up from 80 in FY2006.
For FY2007, 111 Iowa applications were funded, with Iowa applicants receiving total funding of $15,162,262: $2,841,968
in grants and $12,320,294 in guaranteed loans.

Transportation and Alternative Fuels: Staff routinely issue press releases on current and estimated transportation fuel
prices, alternative fuels purchased, natural gas prices, propane prices, and heating oil prices. Staff issued 14 press
releases and responded to 69 media inquiries. Hurricanes, political unrest, delayed maintenance on refineries, and
international terrorism are just a few of the things that affect fuel prices.

Rebuild America 2005 DOE Grant: The final report was submitted to DOE in the Fall of 2006, and accomplishments
included partnering with the University of Northern Iowa, Scott Community College, Hamilton County, and Muscatine
County to educate communities about energy efficiency and renewable energy, create a job shadow program, implement
energy management improvements, and produce and deliver a University Community Educational video.

Rebuild America 2006 DOE Grant: The contractor for this project determined that they would need more time to facilitate
the implementation of significantly more energy management improvements than originally expected. Accordingly, the
U.S. Dept. of Energy approved our request to extend this grant term to January 31, 2008. The contractor has
subsequently encountered internal problems unrelated to this grant, but which have put the continued execution of our
contract with them in question. We are committed to making the adjustments that will best enable the achievement of the
grant’s goals and objectives.

Industrial Technologies DOE Grant: The Iowa Department of Natural Resources is partnering with Kirkwood Community
College in Cedar Rapids and industry stakeholders to formulate a curriculum and certification program in industrial energy
efficiency and waste minimization processes. In addition, the curriculum will enable Iowa manufacturers to provide this
training for their current employees.

Building America 2005 DOE Grant: The final report for this grant was submitted to DOE in the Spring of 2007. Energy
Section staff assistance led to the construction of an affordable and highly energy efficient home in Fort Dodge. We
partnered with RDG Planning and Design and Iowa State University for design, and Iowa Central Community College
Carpentry Program students constructed the home.

Industries of the Future DOE Grant: DOE Industries of the Future monies were used to fund the Pollution Prevention
Intern at Pinnacle Foods Group, Inc. in Fort Madison, Iowa. During the course of the summer, the intern worked on the
following projects: continuous blow down heat recovery system; boiler economizer; insulating steam pipes; repairing
steam traps and use of waste heat form heat exchanger for space heating. These projects resulted in an implemented
savings of $281,346 and a reduction of 27,660,000,000 Btus. The projects not completed will result in a savings of $8,936
and a reduction of 1,117,000,000 Btus. The grant period ends December 31, 2007 and a Final Report will be submitted
March 1, 2008.
Page 59



IOWA

Tall Towers’ Wind Energy Research: The Energy Section has contracted with the Iowa Energy Center at Iowa State
University for research into high-altitude wind conditions unique to the upper Midwest region. Results of this research will
assist market growth in new “Tall Tower” technologies.

Life Cycle Cost Analysis: The Code of Iowa requires that a life cycle cost analysis (LCCA) be completed for new
buildings over twenty thousand square feet and for major renovations. These reports are submitted to the Department of
Public Safety (Building Code Bureau) and then forwarded to the Department for a technical review and approval. These
studies must be approved by the Department before contracts for the construction or renovation are let. Reports approved
in FY07 represent annual savings of $266,135 and life cycle cost savings of $3,118,876. (Incremental financing for two of
these reports will be done in FY 08 (amounting to annual savings of $71,139 with life cycle cost savings of $852,910).

Energy Emergency Preparedness: In the event of an energy-related emergency, the goal of the energy emergency
preparedness program is to help enable immediate response collaboration among energy providers, state and local
governments, and federal programs. The Energy Section periodically updates Iowa’s energy emergency plan, and issued
a Winter Fuels press release to inform industry representatives of issues involved in the upcoming heating season.
                                                                                                                  Page 61



KANSAS

Kansas Corporation Commission
1500 SW Arrowhead Road
Topeka, KS 66604-4027
Phone: 785.271.3170
Fax: 785.271.3268
Website: http://www.kcc.ks.gov/energy/


               FEDERALL FUNDS AWARDED AND STATE MATCH, LEVERAGED AND COST SHARE

       State FY           Federal SEP Grant            State Match              Leveraged               Cost Share

       FY 2004                 $569,000                 $254,914                $1,267,230                 267%

       FY 2005                 $557,000                 $123,447                 $673,721                  143%

       FY 2006                 $560,000                 $119,288                 $520,133                  114%

       FY 2007                 $442,000                 $132,412                 $365,496                  112%

       FY 2008                 $581,000                 $468,467                 $75,000                    93%




Setting a record attendance of nearly 600 attendees, the 2007 Kansas Renewable Energy & Energy Efficiency
Conference was held September 25-26, at the Topeka Ramada Inn.

Kansas Lieutenant Governor Mark Parkinson kicked-off the conference. Parkinson is also co-chair of the Kansas Energy
Council and has become a leader in progressive energy policy development for the State of Kansas. He also presented
the first Governor Energy Recognition Awards.

Keynote speakers were Wes Jackson, founder and current president of The Land Institute, located near Salina, and Soren
Hermansen, director of the Samsø Energy Agency of Denmark.

Soren Hermansen, spoke about the reality of sustainability. Samsø, known as Denmark's renewable energy island is
100% self-sufficient with wind-generated electricity. Hermansen discussed how the island accepted and met its
government challenge 10 years ago to become totally energy self-sufficient in a carbon-neutral way.

One of the nation's top wind energy authorities, Larry Flowers, addressed the Future of Wind in Kansas. Flowers is the
principal project leader at the Wind Technology Center at the National Renewable Energy Laboratory located in Golden,
Colorado.

On day two, multiple concurrent sessions on various energy topics was facilitated by over 40 energy experts from Kansas
and throughout the country. Topics include efficiency and conservation, new technologies, wind and solar energy, biofuels,
public education and loan programs, and federal policy updates.
Page 62



KANSAS




          Spearville Wind Energy Facility, Ford County                    Kansas Wind Map developed by Kansas Energy Office

WIND ENERGY IN KANSAS—2007 was an exciting year for renewable energy in Kansas, especially wind energy. Since
December of 2006 nearly 1,000 megawatts (MW) of potential new wind was announced by a number of the state’s leading
utilities.

The new Smoky Hill Wind Project, along Interstate 70 in Lincoln and Ellsworth Counties, was developed by TradeWind
Energy, LLC, a Kansas developer and will be owned by Enel North America, Inc. It features 100 MW of wind generation to
be divided among Sunflower Electric, Kansas City Board of Public Utilities, and Midwest Energy. It will be fully operational
in January of 2008.

The state’s largest utility, Topeka-based Westar, announced on Feb. 26, 2007, a request for proposals (RFP) for 500 MW
of renewable energy. This was followed by a joint announcement on Mar. 20 by Kansas City Power & Light and the Sierra
Club of a commitment of another 400 MW of wind generation. Westar plans to have about 300 MW of the development
installed by the end of 2008. KCPL already owns the Spearville Wind Energy Facility in Ford County that was put into
operation in the fall of 2006.

These announcements will assure Kansas utilities will meet a voluntary goal of 1,050 MW of wind by 2010 as announced
by Governor Kathleen Sebelius during the State of the State address on January 10, 2007. This equals about 10% of
nameplate electric generation capacity for the state’s utilities. The utilities agreed to a commitment of a 20% voluntary goal
by 2020.

NEW WIND WORKING GROUP (WWG) - Kansas has the potential to be one of the country’s leading producers of wind
energy; and to help spread the word, Governor Kathleen Sebelius and Lieutenant Governor Mark Parkinson have formed
the Kansas Wind Working Group, announced in January of 2008. “Opportunities for increased wind energy within this
state are plentiful, affordable and obtainable,” Sebelius said. “A wind working group can help attract new wind energy
projects to the state and promote better use of this abundant natural resource.”

The group, formed through Executive Order 08-01, will educate stakeholder groups with the current information on wind
energy markets, technologies, economics, policies, prospects and issues. “By opening the dialogue between advocacy
groups, utility companies and communities across our state we can form a shared vision on how best to move forward with
new wind projects in Kansas,” said Parkinson.

The Kansas Wind Working Group will be supported by the Energy Programs Division of the Kansas Corporation
Commission and the lieutenant governor’s office. Funding for this group will be provided by Wind Powering America. “Our
focus is on states,” said Larry Flowers, National Technical Director of Wind Powering America (WPA). “WPA works with its
state partners and their stakeholders through its Wind Working Group network, in which 30 states are now engaged. WPA
looks forward to increasing its involvement in Kansas through the Kansas Wind Working Group, providing technical
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KANSAS

assistance, objective analysis, up-to-date information and education and seed funding for the Kansas Wind Working
Group operations.”

FACILITY CONSERVATION PROGRAM—The Kansas Facility Conservation Improvement Program (FCIP) is in its
second generation at the Kansas Energy Office. The new contract for the FCIP includes 10 pre-qualified Energy Service
Companies (ESCOs), and a strong focus on environmental design and responsibility, integrating such factors as United
States Green Building Council’s LEED (Leadership for Energy Efficient Design) certification. To date, the FCIP has
completed over $138.7 million in energy efficiency improvements in nearly 30 million square feet of public building space,
avoiding nearly $11 million in utility costs annually. Using energy savings performance contracting, the FCIP has allowed
many public-sector customers the opportunity to fund capital improvement projects and save millions of dollars in utility
costs.

The Kansas program has been selected as a Best Practices by the Western Governors’ Association; and it is being used
as an exemplary program by the United States Department of Energy in a half million dollar joint effort with the Energy
Services Coalition, National Association of State Energy Offices (NASEO), National Council of State Legislators (NCSL),
and National Association of Energy Service Companies (NAESCO). Several other states are modeling their performance
contracting program after the Kansas FCIP.

                                        FCIP Projects for Current Program Year
                    Project                          Cost                  Annual Savings                  Sq Ft
Independence Community College                           $2,699,701                   $150,843                     168,564
Fort Scott Community College                             $2,052,494                   $190,634                     219,793
Pittsburg USD 250                                        $2,121,800                     $84,651                    599,573
Cherokee USD 247                                         $1,128,917                     $63,358                    180,220
North Central Kansas Tech College                           $778,282                    $68,516                    247,814
Shawnee County                                           $7,563,370                   $258,779                     437,027
Bluestem USD 205                                            $872,512                    $64,594                    159,989
Burrton USD 369                                             $432,284                    $33,940                     91,911
City of Colby                                               $264,214                    $20,779                     86,000
Highland USD 425                                            $368,947                    $35,014                     85,263
City of Parsons                                          $7,053,886                   $391,608                     294,351
City of Pittsburg                                        $1,826,932                   $120,056                     180,406
Haven USD 312                                            $3,505,565                   $115,424                     257,948
Rawlins County Health Center                                $222,609                    $10,761                     23,178
Midway USD 433                                              $527,369                    $21,306                     55,025
Iola USD 257                                                $728,580                    $69,370                    257,457
Rawlins County USD 105                                      $555,517                    $14,892                    132,079
Total                                                   $32,702,979                 $1,714,525                   3,476,598
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KENTUCKY

Kentucky Governor’s Office of Energy Policy
500 Mero Street
12th Floor, Capital Plaza Tower
Frankfort, KY 40601-1957
Phone: 502.564.7192
Fax: 504.564.7484
Website: http://www.energy.ky.gov/


                                           The State Energy Program provides Kentucky with the resources to build
                                           public-private partnerships across the Commonwealth that promote and d
    About the State Energy Program         evelop renewable energy and energy efficiency opportunities. The initiatives
    The State Energy Program               highlighted here are examples of activities that are helping to improve
    (SEP) is the only federally funded,
                                           Kentucky’s economy, environment and energy security.
    state-based program (administered
    by the U.S. Department of Energy)
    that provides resources to the                                 Program Accomplishments
    states for their deployment in
    addressing local renewable energy      Kentucky ENERGY STAR Program—A public-private partnership that helps
    and energy efficiency needs and        protect the environment while saving consumers money through superior
    opportunities.                         energy efficiency. Kentucky became only the fourth state in the nation to be
    In FY 2007, the SEP program            declared an ENERGY STAR partner by the U.S. DOE and the U.S. EPA.
    provided Kentucky with $747,000        Program efforts have helped to increase the number of ENERGY STAR
    and another $278,000 in SEP spe-
                                           certified buildings in Kentucky by 600 percent and certified homes by 71
    cial projects that supported many
    initiatives that would not have been   percent since 2005.
    possible without SEP seed funding.
    Kentucky leveraged these funds         Kentucky Energy Efficiency Program for Schools (KEEPS) - Through a
    against $730,000 of state and pri-     grant to the University of Louisville (U of L), the Governor’s Office of Energy
    vate funding, providing a return of    Policy (GOEP) developed the Kentucky Energy Efficiency Program for
    71 percent for SEP federal funds       Schools (KEEPS). The program offers participating schools and universities a
    invested in Kentucky.                  complete package of tools, training and expertise to help save money by
                                           increasing energy efficiency in buildings.

High Performance Schools Workshop—GOEP sponsors an annual workshop designed for school superintendents,
board members, facilities managers, architects and engineers who want to apply high performance concepts to their next
school construction or renovation project. These workshops have resulted in the construction of a number of high
performance energy-efficient schools in Kentucky.

High Performance Home Workshops—GOEP sponsors one-day workshops focusing on high performance homes in
cities across Kentucky. The workshops feature nationally recognized experts who provide objective information on the
practical aspects of energy-efficient construction.

Cooperative Extension Service Circuit Rider—GOEP supports the University of Kentucky (UK) College of Agriculture to
promote energy efficiency education throughout the Commonwealth. The support enables the Cooperative Extension
Service to fund an ENERGY STAR circuit rider who travels across the state promoting ENERGY STAR at public events
including home and garden shows and electric cooperative annual meetings, as well as a large exhibit at the Kentucky
State Fair. The circuit rider connects with over 750,000 Kentuckians annually to promote energy efficiency and renewable
energy.
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KENTUCKY

Kentucky 25X’25 Roadmap—GOEP was instrumental in establishing the Kentucky Rural Energy Consortium (KREC) to
develop renewable energy and energy efficiency (REEE). KREC, working with U of L and UK, has taken the lead to
develop a roadmap that will help Kentucky use REEE to secure an economically and environmentally sustainable energy
future. The 25x’25 initiative is a national grassroots effort to achieve at least 25 percent of our energy from improved
technology and renewable resources, such as solar, biomass and biofuels, by the year 2025. The 25x’25 initiative is
backed by a diverse group of stakeholders interested in making America’s energy future more secure, affordable and
environmentally sustainable.

Kentucky Clean Fuels Coalition Grant—The non-profit Kentucky Clean Fuels Coalition (KCFC) received a grant from
GOEP to help expand Kentucky’s renewable fuels market and biodiesel infrastructure. The grant also provided partial
funding for program administration of Kentucky’s Clean Cities Program.

Twelve ENERGY STAR Schools Announced in the Commonwealth—Kentucky has 12 ENERGY STAR-qualified
schools in the state. These schools are some of the most energy-efficient facilities in the Commonwealth. On average,
these schools use as much as 33 percent less energy than a traditionally built school, and can save $45,000 to $50,000 in
annual energy costs.

Second Annual Kentucky Energy Efficiency Conference—The Commonwealth joined Kentucky business, utility,
governmental, academic, consumer and environmental leaders in Frankfort to discuss ways to implement the National
Action Plan for Energy Efficiency. The GOEP and 13 other corporate and nonprofit sponsors organized the conference.

Kentucky ENERGY STAR ‘Change a Light’ Program—GOEP, working with nonprofit Kentucky National Energy
Education Development (KyNEED) Project, offered grants to help schools, nonprofits and local governments educate the
public about the benefits of substituting energy-saving compact fluorescent light (CFL) bulbs for traditional incandescent
bulbs. The Kentucky campaign ranked 22nd in the nation for pledges collected, resulting in a reduction of over 37 million
pounds of greenhouse gases since the program was initiated.

Kentucky Energy Assessment Center—GOEP collaborates with U of L to offer an energy assessment and technology
service to Kentucky’s businesses and industries. These assessments help Kentucky’s industries stay profitable and stay
local. The Center has conducted 22 assessments that have identified over $6 million in annual savings.

Kentucky’s Energy Efficiency Potential Study—GOEP partnered with U of L to study how additional investments in
energy efficiency technologies can lower energy expenditures, increase new employment opportunities, strengthen
economic activity and improve quality of life. The study concluded that there is significant opportunity and value for energy
efficiency in Kentucky and enhanced energy efficiency could meet all of the projected growth in energy demand by 2017.

Kentucky NEED Project—The KyNEED Project receives grant support from GOEP for the design and delivery of an
energy education program for teachers and students in grades K-12, and to support 20 NEED workshops throughout the
state. KyNEED also collaborates with GOEP in the production of the annual High Performance Schools Workshop.

UK Energy Efficiency in New Construction Grant—Kentucky was awarded a competitive grant from the U. S. DOE to
help teach builders and the public about the benefits of energy-efficient buildings. Partners include the University of
Kentucky’s College of Agriculture, Cooperative Extension Service; Kentucky Community and Technical College System
(KCTCS) and GOEP.

State Energy Savings Performance Contracts (ESPC) - GOEP has assisted the Finance and Administration Cabinet to
develop eight ESPC projects for state facilities across the Commonwealth. Agencies assisted include the Transportation
Cabinet, Cabinet for Health and Family Services, Kentucky Community and Technical College System and the
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KENTUCKY

Department of Corrections. These projects have the potential of saving 20 to 35 percent in utility costs that represents an
annual cost savings of nearly $4.5 million.

Bluegrass Energy Expo—GOEP helped sponsor the annual Bluegrass Energy and Green Living Expo. The Lexington
event offered the public an opportunity to learn about proven energy solutions, energy-saving products and services, as
well as renewable energy choices that create a more sustainable and prosperous future for Kentucky.

Energy Research and Development Seed Grant for Renewable Energy and Energy Efficiency—GOEP awarded five
research and development grants for renewable energy and energy efficiency initiatives for a total of over $518,000. This
funding is building intellectual capacity at Kentucky’s public universities in the area of energy research and development.

For More Information
To learn more about Kentucky’s renewable energy and energy efficiency programs, please visit the Governor’s Office of
Energy Policy online at www.energy.ky.gov.
                                                                                                                   Page 69



LOUISIANA

Louisiana Department of Natural Resources
P.O. Box 44156
617 North Third Street
Baton Rouge, LA 70804-4156
Phone: 225.342.1399
Fax: 225.342.1397
Website: http://dnr.louisiana.gov/techasmt


The Louisiana Department of Natural Resources (DNR), Technology Assessment Division (TAD) is the technical arm of
the Office of the Secretary and serves as the State energy office. Our mission is to promote and encourage the
exploration, production, conservation and efficient use of energy and natural resources in order to improve the
environment, enhance economic development and insure a better quality of life for this and future generations.

Air quality issues continue to be a major issue for Louisiana. In November of 2006, Louisiana joined 28 other states in an
allowance-based, cap-and-trade market in order to comply with Environmental Protection Agency regulations and to
reduce ozone causing emissions. Our agency partners with the Louisiana Department of Environmental Quality to
formulate policy and procedures for implementing the Clean Air Interstate Rule, which was designed to ensure that air
pollution moving across state lines is dramatically reduced. We are also members of the Baton Rouge Clean Air Coalition,
which is a public-private partnership formed to address the mutual goals of government and industry in striving to meet our
mandated emission reduction requirements.

The State energy office continues to provide assistance to the victims of hurricanes Katrina and Rita on an ongoing basis
through the Louisiana Recovery Authority’s Environmental Task Force. In addition to providing a variety of other
resources to the Task Force, DNR has made available thousands of copies of the very popular “Quick Notes on Achieving
Energy Efficiency,” and “Builder’s Guide to Energy Efficient Homes in Louisiana” through the Road Homes offices
statewide. DNR has provided guidance to numerous agencies and entities on developing energy efficiency and
renewable energy strategies.

Residential
Our ongoing Home Energy Rebate Option Program (HERO) offers a cash rebate of up to $2,000 to Louisiana
homeowners that renovate their homes to meet a high level of energy efficiency. This program has won the EPA’s
ENERGY STAR high achievement award for six years in a row. Staff trains, certifies, and provides quality control over
our energy raters that practice statewide. To maintain quality control over the program and to assist raters with keeping
current with industry updates, DNR hosts an annual review, update, and training session for our certified energy raters.
The DNR program is accredited through the Residential Energy Services Network (RESNET). RESNET ensures the
success of the building energy performance certification industry, sets the standards of quality, and increases the
opportunity for ownership of high
performance buildings. At the request of
RESNET, and to accommodate our
certified energy raters, DNR is hosting for
the first time ever, a series of national rater
examinations statewide, and is assisting
raters with passing the test which is
mandatory for maintaining certification.
Louisiana Home Energy Raters are private
sector entities that operate independently
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LOUISIANA
                                                                                                                   Page 71



LOUISIANA

through funds charged to the homeowner for the energy rating. In addition, DNR administers the Home Energy Loan
Program, currently being modified to address highly efficient technologies to include off-the-shelf technologies. Since
inception, 16,118 rebates totaling $22,381,042 and 276 loans totaling $839,552 have been issued leveraging
approximately $117,793,743 more in privately funded improvements. The program is included as a voluntary measure in
the State Implementation Plan submitted to EPA to reduce pollutant emissions in the state.

Institutional
Seventeen projects executed under the Louisiana Department of Natural Resources’ Energy Fund for energy performance
contracts in public buildings leveraged $65 million in guaranteed energy savings from a $3.6 million investment and $34
million in private funding. The annual emission reductions achieved because of these projects equate to 61 tons of Sox
(oxides of sulphur), 41 tons of Nox (oxides of nitrogen), and 14,000 tons of CO2.

ACT No. 1184 of 2001, also known as the “Energy Management Act of 2001,” directed the Division of Administration to
develop and implement a standardized reporting method to obtain information from each state agency on energy usage
and costs in order to ensure that buildings and facilities are operated with maximum efficiency. Our office assisted the
Division of Administration with the development of a database to capture each agency’s information. Hurricanes Katrina
and Rita later changed the focus of the Office of State Buildings to recovery issues. Enhancements to the facility
management program were made while other scope items were deferred. With such a large volume of state funded
facilities being renovated or replaced, the Louisiana Legislature passed Act 270 in the 2007 Regular Session. Act 270
requires that all state-funded major facility projects meet higher energy efficiency standards and be designed, built, and
certified to exceed the state energy code requirements by at least 30% when the increase is determined to be cost
effective based on a 30 year life-cycle cost analysis.

Renewables
The Renewables Council of Louisiana established by the State energy office in collaboration with the Departments of
Economic Development, Agriculture and Forestry, and Environmental Quality, has held informative conferences to attract
private industry and has since moved to establish itself as a non-governmental entity driven by over forty-five businesses.
The Council is directing the Legislature’s and the Public Service Commission’s attention to impediments to expansion of
renewable resource utilization. The Technology Assessment Division is providing ongoing leadership by providing
comprehensive offshore wind energy studies and analysis regarding how renewables may be incorporated into future
renewable portfolio standard legislation and utilizing green pricing as an alternative. DNR initiated legislation passed by
the Legislature in 2005 to enable the state to lease offshore acreage for wind power development.

In addition, the Public Service Commission adopted rules for net metering in 2005, and the New Orleans City Council has
adopted the same net metering rules for the New Orleans area.

Act No. 371 was passed during the Regular Session of 2007 to provide for a credit against the income tax for the cost of
purchase and installation of a wind energy system or solar energy system, or both, by a resident individual at his
residence located in this state or by the owner of a residential rental apartment project. DNR is assisting the Department
of Revenue with the promulgation of rules.

Energy Codes
The Technology Assessment Division has played a lead role in the initiation and passage of energy codes for buildings in
Louisiana. In 1997, the Louisiana Legislature passed the Commercial Building Energy Conservation Code (CBECC).
Based on ASHRAE 90.1-1989 (American Society of Heating, Refrigeration and Air-Conditioning Engineers Standard 90.1-
1089, Energy Standards for Buildings Except Low-Rise Residential Buildings), the code applied to all new, and
modifications to existing, commercial buildings. Our office reported 8.55 trillion Btu in savings for the 2006-2007 fiscal
year for a total of 39 trillion Btu since passage. This equates to reductions in emissions totaling 23,126 tons of Sox,
14,821 tons of Nox, and 7,169,414 tons of CO2.
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LOUISIANA

Effective June 22, 2007, CBECC was upgraded to ASHRAE 90.1-2004 and 2006 IECC for residential buildings less than 4
stories tall. Effective January 1, 2007, the mandated statewide uniform construction code includes the 2006 International
Building Code, the 2006 International Residential Code (including the energy provisions but not including Parts I-
Administrative, V-Mechanical, VII-Plumbing and VIII-Electrical and with the wind provisions of 2003 IRC Section
R301.2.1.1.), the 2006 International Existing Building Code, the 2006 International Mechanical Code, the 2006 Fuel Gas
Code, the Louisiana State Plumbing Code and the 2005 National Electric Code. The Technology Assessment Division
has an intensive training schedule throughout Louisiana on COMcheck and REScheck, the commercial and residential
energy codes compliance software.” Act 335 effective July 9, 2007 requires all jurisdictions in the state to enforce 2006
IRC by inspection. The only change to the energy portion was “supply and return ducts be insulated to a minimum or R-
6.”

The Technology Assessment Division has an important role in the development of building codes for the state of
Louisiana. Also, employees of the Division help the public better understand the energy code through a series of classes
given throughout the state. In 2007, the energy conservation codes for both commercial and residential buildings were
updated to bring Louisiana to the forefront in energy. Before the codes were changed, the Government Accountability
Office completed a report on the expected energy and money that could be saved during hurricane recovery by moving to
the new codes. These numbers were used with the Louisiana Recovery Authority’s 2006 Initial Quarterly Report to
determine the total savings that could be realized. The results are in the following chart:

           Building                    Number of                   Annual Savings                  Total Annual
            Type                   Buildings Affected               Per Building                     Savings
House (slab-on-grade)                    65,000                          $167                       $10,855,000

House (elevated)                         150,000                         $233                       $34,950,000

Office                                    6,000                         $7,608                      $45,658,000

School                                     440                         $10,524                       $4,630,560

Hospital                                    10                         $32,567                        $325,670

Retail                                    12700                        $37,649                     $478,142,300

All Buildings                            234,150                        $2,454                     $574,551,530


Transportation
State Energy Program (SEP) and Special Project funding support three coalitions in Louisiana. Some of the
accomplishments include the purchase of six compressed natural gas (CNG) trolleys for the downtown Baton Rouge area,
new CNG fueling facility at the Baton Rouge airport, purchase of natural gas vehicles for the City of Baton Rouge, hybrid
electric buses for Shreveport, and bio-diesel use for Mardi Gras parades in New Orleans. The Clean Cities programs are
listed as voluntary measures in the State Implementation Plan for Baton Rouge, and the Early Action Compacts for
Shreveport and New Orleans. In January 2007, the third annual Louisiana Clean Cities Conference was held in New
Orleans, encompassing other cities and pushing alternative fuel use as a statewide effort. Renewable Fuel Standard
Legislation was passed in the state in 2006 mandating 2% sales volume for both ethanol and bio-diesel, once production
equals or exceeds an annual production of at least 50 million gallons.
Hurricane Recovery
DNR is actively involved in numerous educational activities to promote the rebuilding of Louisiana’s Gulf Coast, focusing
on sustainability and energy efficient practices. Staff serves as a member of the Louisiana Recovery Authority’s
                                                                                                                        Page 73



LOUISIANA

Environmental Task Force by providing information, materials, and potential projects in an effort to incorporate such
practices.

DNR facilitated two recovery roundtables for the Holy Cross Neighborhood in New Orleans to incorporate such practices
into the neighborhood’s future plan. “A Preliminary Plan for the Sustainable Restoration for the Lower 9th Ward, including
the Historic Holy Cross Neighborhood,” was presented for the association to be utilized as a starting tool for planners
assigned to the neighborhood by the city. Prior to this initiative, no recovery office put the ninth ward first on priority lists
because of sustainable rebuilding efforts. Various suggestions within the plan have been actively embraced by DNR, as
well as other organizations, in utilizing this neighborhood to move forward with projects reflected in the plan. Some of
these projects include but are not limited to: Sharp Solar’s residential initiative, Global Green’s community center, Brad
Pitt’s “Make it Right” campaign, Holy Cross neighborhood’s sustainable recovery center, and others.

DNR, in collaboration with the Preservation Resource Center (PRC), is addressing the historical housing stock prevalent in
New Orleans. Five workshops consisting of energy efficient and renewable technologies, including solar, have been
completed. Recommendations highlighted in these workshops resulted in private donations of technologies and labor to
be placed in several of the homes under renovation by the PRC’s Operation Comeback in the Holy Cross neighborhood.
All workshops and installation recommendations have been included in DNR’s three disk DVD set entitled: “DNR
Workshop & Informational Series on Residential Energy Efficiency.”

Information developed as a result of these collaborative efforts have been captured by DNR in booklet form as well as
DVD format and are available for free to the public. DNR has provided over 50,000 copies of the “Quick Notes on
Achieving Energy Efficiency” booklet along with the 3 set DVD series to the Louisiana Recovery Authority’s Road Home
offices statewide.

Industrial
Louisiana DNR has partnered with Texas A & M to sponsor the Industrial Energy Technology Conference for the past
three years. This annual two-day conference is designed to serve the professionals who are involved in the production,
use, or transportation of energy, or in designing and evaluating energy-related equipment and waste reduction practices.
Because of the similarity of the industries located in Texas and Louisiana, the conference was moved to New Orleans in
2005 where it has remained. It will be held in New Orleans again in 2008.

Louisiana promotes the “Save Energy Now” program and has had 14 plants complete audits with more pending. Among
fifty states, this is the third highest number to participate. Additionally, Louisiana has an Industrial Assessment Center that
has performed over 150 assessments on small to medium sized plants.

DNR co-sponsored one Combined Heat and Power workshop in 2007 with two more planned for the first quarter of 2008.
These individualized workshops target government and non-profits, large commercial or industrial entities, mid-sized
commercial entities, waste treatment and other industrial sectors.
Page 75



MAINE

Maine Public Utilities Commission Energy Programs Division
#18 State House Station
Augusta, ME 04333-0018
Phone: 207.287.3318
Fax: 207.287.1039
Website: www.efficiencymaine.com


MAINE's State Energy Program (SEP) merged this year with Efficiency Maine to form one cohesive Energy Programs
Division. Efficiency Maine is a statewide effort to promote the more efficient use of electricity, help Maine residents and
businesses reduce energy costs, and improve Maine's environment. Efficiency Maine is funded by electricity consumers
and administered by the Maine Public Utilities Commission. The merger of the State Energy Program with Efficiency
Maine allows SEP to use DOE funding to leverage matching funds at more than a dollar for dollar ratio. This leveraging
allows Efficiency Maine to provide a broader, fuel neutral menu of services to Maine citizens.

The following initiatives promote the more efficient use of energy in Maine.

THE VOLUNTARY RENEWABLE RESOURCES FUND was established by the Legislature in 2000 and is supported by
contributions made by consumers on their electric bill. The Voluntary Renewable Resources Fund supports small-scale
community projects that will serve as demonstration projects designed to educate the community on the value and cost-
effectiveness of harnessing natural resources for clean electricity. The Fund is an innovative approach to providing power,
creating jobs and protecting the environment as it allows all electricity consumers the opportunity, personally, to support
the expansion of a clean energy market in our state. Maine is a state rich in natural resources and this fund encourages
the development of clean energy projects small in scale that can be replicated community to community. Our hope is that
as these projects become more prevalent throughout the state, more communities will want to pursue renewable energy
projects.

As initially established, the Fund was administered by the State Planning Office. The administration of the Fund was
transferred to the Public Utilities Commission effective July 1, 2007. The program is administered by the SEP Program
Manager. Although only three grants had been awarded from this fund since its inception in 2000, ten projects were
awarded grants from the fund in October of this year. Grants were awarded state-wide from Kittery to Presque Isle, and
will demonstrate the viability of solar, wind and tidal resources.

SOLAR INCENTIVE PROGRAM
The Program was established on June 29, 2005 as part of Governor Baldacci’s Solar Initiative and enacted into law as “An
Act To Encourage the Use of Solar Energy”. The Program is administered by the Commission’s Energy Programs
Division. The program’s manager is funded by SEP. The Program provides rebates for the installation of solar
photovoltaic (PV), solar hot water, and solar air systems for Maine residents.
The two primary goals of the Maine Solar Energy Rebate Program (Program) are to:

1.   Increase the use of solar photovoltaic, solar hot water, and solar air systems by Maine residents; and
2.   Promote the development of trained and certified renewable energy installers throughout the State of Maine.
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MAINE

Table 2-B: Maine Solar Rebate Program 2007 Savings
                                               Annual
                                   Number      Energy                Lifetime        Annual CO2
Savings by System and                 of      Produc-                 Energy          Savings           Lifetime CO2
Fuel Type Displaced                Systems       tion               Production         Tons            Savings Tons)
Solar Photovoltaic (PV) (MWh)         15        51.8                   1,036           24.13                482.6
Solar Hot Water
(Gallons of Oil Savings)              48        8,771                 175,420            89.0               1,780
Solar Hot Water
(Gallons of Propane Savings)          40        7,852                 157,048           45.1                902.4
Solar Hot Water (MWh Savings)         21        71.65                  1,433            33.37                667
Solar Air (Gallons of Oil Savings)    14        1,981                 39,620            20.1                402.2
TOTAL                                138          n/a                   n/a             211.7              3,934.2
SMALL BUSINESS ENERGY AUDIT PROGRAM—The Division provides free small business and light industrial energy
audits. In addition to the small business energy audits already completed, we conduct audit follow-up activities to ensure
that businesses receive all available Efficiency Maine incentives to implement ideas generated as a result of the audits.
Business audits conducted this year resulted in projected savings of:
An important part of the State Energy Program’s work is accomplished through D.O.E. Special Projects grant awards. We

      kWh/yr             $ SAVINGS              MBTU/yr              #SOx/yr              #NOx/yr             #C02/yr
    1,337,903             $206,973               45,663             1,370,013             513,755            1,374,026
are most grateful for DOE’s assistance in providing this important service to the State of Maine.

ANEMOMETER LOAN PROGRAM—Maine has identified a need to provide education and outreach to its citizens
interested in small wind applications. To promote the use of wind as a renewable energy resource in the state, interested
parties need reliable information on wind resources in their particular area. A grant from the U S Department of Energy
allows us to meet this goal.

The program is administered by Efficiency Maine’s SEP program manager, and involves University of Maine faculty and
students who install the equipment, collect and analyze the data, and generate a wind resource report for that site.
Installations will be performed only after a desk audit using existing internet resources – TrueWinds, and Google Earth, to
eliminate sites that are obviously not suitable. The anemometer equipment remains at sites for up to 12 months.
Landowners are responsible for permitting and insurance requirements while the equipment is installed at their site.
Eligible participants will include schools, communities, non-profit organizations and businesses.

REBUILD AMERICA—MAINE ENERGYSMART HIGH PERFORMANCE SCHOOLS PROJECT
The Maine EnergySmart High Performance Schools Project connects national, regional, and state resources to support
the construction of energy smart, high performing schools to people who make school design and financing decisions in
Maine - the administrators, boards, and volunteer building committees in the cities and small towns contemplating new
school buildings. Through this grant the State Energy Program leverages Efficiency Maine system benefit charge funds, to
provide an EnergySmart Schools Circuit Rider who links the lay people engaged in the process of designing or renovating
local schools with the resources to assist in the application of efficient design techniques and renewable energy
technologies. Less than $20,000 in Federal DOE dollars spent in the last fiscal year resulted in the following savings and
Match funding.
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MAINE


                            Actual Incentives Paid CY 2007 (match)            $413,931.00
                                      Total Energy Savings
                                    Total kWh Annual Savings                    419,655
                                   Total Energy Dollar Savings                $55,554.00
                                       Natural Gas Therms                          0
                                           Gal. # 2 Oil                          20,370
                                           CO 2 (Lbs.)                         1,022,512
                                           SO 2   (Lbs.)                         4,538
                                                NOx                                4,236
The number for 2007 is                                                                          reflects schools
completed during the calendar year. This will be cyclical as we move forward, because some schools will always be in the
process, but have not yet actually received incentives, and savings cannot yet be counted. The numbers represent five
schools that were completed during this time period. The 2006 numbers represented eight schools and projecting forward
for 2008 approximately nine schools will be completed.
                                                                                                                 Page 79



MARYLAND

Maryland Energy Administration
1623 Forest Drive, Suite 300
Annapolis, MD 21403
Phone: 410.260.7655
Fax: 410.974.2250
Website: http://www.energy.state.md.us


                        Maryland Achievements in Energy Efficiency and Renewable Energy

The Maryland Energy Administration (MEA) has recently launched ambitious energy efficiency and peak demand
reduction goals. The EmPower Maryland initiative will reduce per capita electricity consumption by 15 percent in 2015.
Reaching this goal requires a significant investment in energy efficiency and will cover all sectors of the economy.

Maryland, leveraging funds from the U.S. Department of Energy’s State Energy Program, has numerous successes to
date, including:

State Agency Loan Program: Since 1991 MEA has loaned roughly $16.5 million to other state agencies for energy
efficiency improvements. This saves our taxpayers $2.75 million every year. Savings from loans made in 2007 are
expected to be 5.4 billion British thermal units annually. Cumulative savings from program inception are $20,186,451, on
1,103,642 MMBTU.

Community Energy Loan Program: Designed to finance energy efficiency improvements for local governments, since
inception, the program has invested nearly $15 million, saving local governments over $3 million every year. Cumulative
savings from inception are $20,317,124, on 873,727 MMBTU.

Energy Performance Contracts: MEA and the Maryland Department of General Services are aggressively implementing
energy performance contracts in state agencies. Through 2006, energy performance contracts saved the State $130
million.

Solar Grants: Over the last three years MEA has given grants to over 200 homeowners to install solar photovoltaic
panels or water heating systems. Since Sept. 2006, MEA received 146 geothermal heat pump grant applications for
$1,000 each. 127 have been completed, providing estimated annual heating, cooling, and hot water savings of $114,300.

Green Buildings: MEA oversaw the allocation of $25 million in tax credits to support green building. We recently
celebrated the opening of the LEED Platinum Highland Beach Town Hall – Maryland’s second LEED platinum building.

Biodiesel: Through MEA’s Biodiesel Terminal Grant program we have brought biodiesel to a terminal in Baltimore and
anticipate bringing biodiesel to another terminal in 2008. Demonstrating our own leadership, the Maryland State Highway
Administration purchases biodiesel for 91 percent of its diesel fuel.

Clean Energy Schools: This past summer, Governor Martin O’Malley announced the Clean Energy Schools initiative
which will demonstrate renewable energy in at least one school in every county in the state.
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MASSACHUSETTS

Massachusetts Division of Energy Resources
Executive Office of Energy & Environmental Affairs
100 Cambridge Street, Suite 1020
Boston, MA 02114
Phone: 617.727.4732
Fax: 617.727.0030
Website: http://www.mass.gov/doer/


Massachusetts continues and is accelerating its drive to create a clean energy future for all of its citizens. We are
advancing energy efficiency development as well as renewable energy developments with renewed vigor, while taking a
leadership role in helping launch the first successful CO2 cap and trade program in the United States.

Building on our continuous 20 year history of being one of the most aggressive states pursuing energy efficiency, we are
moving forward to reduce further barriers to accomplish all cost effective energy efficiency as soon as possible.

Renewables/Climate Change

Commonwealth Solar Initiative:
The Commonwealth announced a new initiative called Commonwealth Solar, which makes use of existing renewable
energy funds, and is expected to result in the installation of more than 27 MW of solar power capacity over the next four
years.

Under Commonwealth Solar, businesses and residences that install solar power over the next four years will be eligible for
rebates averaging $3 per watt at the start, reducing their costs from roughly $8 per watt for commercial installations, $9
per watt for residential. Commercial customers installing a typical 50 kW solar power system can expect to reduce their
costs by at least 40 percent, achieving payback from reduced electricity costs in six years, and with federal tax credits,
enjoying a return on investment of at least 8.5 percent.

Residential customers will be eligible for rebates on installation of solar arrays up to 5 kW, with rebates higher for low-
income households and for installing solar products manufactured by Massachusetts companies. Also, $2 million per year
for the first two years will be reserved for installing solar power on the roofs of school buildings.

At a cost of $68 million over the next four years, the rebates provided through Commonwealth Solar will be financed
entirely by existing ratepayer funds for renewable energy. The Massachusetts Technology Collaborative will dedicate $10
million per year from the Renewable Energy Trust. The remaining $28 million will come from the Division of Energy
Resources’ Alternative Compliance Payment fund, consisting of payments from electricity suppliers that are unable to
meet their obligations under the Commonwealth’s Renewable Portfolio Standard.

Regional Greenhouse Gas Initiative:
Helping increase awareness and establish responses to growing recognition of the challenges of our green house gas
emissions

•    Drafted regulations enabling the Commonwealth to administer an auction process for CO2 allowances pursuant to
     the Regional Greenhouse Gas Initiative.
•    Participated in establishing RGGI Inc and actively driving start-up of the enterprise.
•    Created and posted first state wide inventory of greenhouse gas emissions from all sources.
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MASSACHUSETTS

Smart Growth/Smart Energy:
Supports the Commonwealth’s Sustainable Development Principles and offers best practices for local communities in the
significance of location and design of projects such as housing, transportation, land use and economic development as
related to energy and growth. This year’s annual conference drew close to 900 attendees from across the state.

Further renewable and distributed energy development:
• Qualified 208 MW of new renewable energy generation for the state's Renewable Energy Portfolio Standards in
    2007, bringing total qualified capacity to 837 MW.
• Promulgated first revision to the Renewable Energy Portfolio Standard regulations on October 19, 2007, improving
    program implementation and treatment of biomass energy eligibility.
• Contracted with the UMASS Agricultural Extension Service to identify which stains of switchgrass are best suited for
    our climate.
• Enabled $100,000 in DOE funding to support the use of E-85 as a transportation fuel.

Energy Efficiency

Massachusetts Electric Utility Energy Efficiency Programs:
The Massachusetts electric energy efficiency programs are funded by a Systems Benefits Charge of 2.5 mils per kWh sold
in the state to all customers of Investor-Owned Utilities. The SBC charge currently funds programs in the amount of $124
million/ year. These programs deliver 455 annual MWh at a cost of 3.2.cents per kilowatt hour, compared to the average
generation price of 8.9 cents\kWh 92005). The average life of installed measures is 13 years; each year’s annual savings
creates a stream of savings that amounts to 4 TWh in 2006. Cumulative savings contributed 4 TWh in negawatt-hours to
Massachusetts overall electricity needs

Massachusetts Residential HEAT Loan Program:
The HEAT Loan Program provides customers with no-interest and low-interest loans (up to 3%) to assist customers with
the installation of qualified energy efficient improvements in their homes. The loans are available up-to $15,000 with terms
up-to 7 years. To apply for the loan, the customer must own and reside in a one to four family residence and obtain a
Home Energy Assessment through the MassSAVE Program. Loans are issued by participating banks, which make the
final decision on approving loans. Funds from this program are used to ‘buy down’ the interest on approved loans to 0% or
3% depending on income.
                                                                         Heat Loan Program 2006 -(11/30/2007)
Initially offered as a pilot, the program will be offered as Total loans program to date                                1222
a regular program in 2008, with some minor                    Total heating systems replaced                             807
modifications to increase customer participation.
                                                              Total loan $ (all measures)                        $8,211,210
Appliance Efficiency Standards:                               Total MMBTU's saved                             23,686,625.40
Massachusetts is leading a New England wide coalition of states developing a regional waiver for heating system
efficiency standards to better reflect the market needs in New England
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MASSACHUSETTS

Further Energy Efficiency Activities:
• Negotiated doubling of gas energy efficiency programs with the largest gas utility over five years from $12.5 million to
    $25 million annually. Program savings are expected to increase proportionally.
• Worked with DEP to revise guidance for Toxic Use Reduction required reports on incorporating energy efficiency into
    their plans.
• Established Commonwealth Energy Response Teams, a "one-stop-shopping" initiative to assist energy end-users of
    all types regarding energy resources (e.g., conservation, distributed generation, demand response, funding
    opportunities, and energy procurement strategies). Since August 2006, DOER's CERT's directly assisted 8 private
    sector companies, 2 not-for-profit entities, and 2 municipalities through on-site visits, technical assistance, and energy
    resource recommendations.

Municipal Programs

Rebuild Massachusetts:
DOER is entering its eighth year of the Rebuild Massachusetts Program. This statewide Program focuses on energy
efficiency and environmental efforts by assisting state and local governments in bringing together the diverse resources
necessary for a comprehensive approach to energy and water conservation. Now renamed, The Energy Smart Network,
the focus this year is to work with communities in the development of an energy intensity footprint.

Energy Information System (EIS): DOER continues the development of the Energy Information System. The (EIS) is
designed to help state and local public agencies understand, report, and better manage energy use and costs. The EIS is
designed to make a broad range of utility bill information available to as broad an audience as possible electronically. As a
web based resource, the EIS matches point and click access with a robust database of utility, building, and weather
information.

The system provides reports of water and energy performance for subsequent analysis, troubleshooting and budgeting.
Data is also used to benchmark building performance, identify targets for conservation improvements, and monitor the
performance of conservation measures installed.

Education/Workshops: DOER provides workshops, in partnership with area Energy Service Companies, for performance
contracting. Under the Massachusetts state chapter of the Energy Services Coalition. DOER provided three workshops to
local and regional governments. A fourth workshop is planned for the Massachusetts Municipal Association Annual
Conference on January 11, 2008.

Wind Energy Development Support for Municipal Light Companies: DOER is working with the Renewable Energy
Research Laboratory at the University of Massachusetts to identify and prioritize eligible sites, perform site assessments,
monitor wind, and provide further pre-development and development support.

The report will provide an initial assessment of the suitability of the proposed sites for installation of one or more medium
or large-scale wind turbines; analyze “fatal flaws” to determine whether wind power is feasible; and provide wind
monitoring data on RERL’s website. DOER will further assess the various means with which to finance potential projects.

Grants for Repairing Renewable Energy Systems                                                                  ($175,000)
Provides funding to determine the cost effectiveness of repairing non-functioning and under performing renewable energy
systems, and making repairs when deemed to be a good investment. A maximum of $175,000 is available for design and
installation. The grants is required to provide complete warranty coverage and insurance for the installation, and all
components, for a period of not less than ten years, and train their personnel on proper maintenance. Three grants will
be awarded; two to repair existing PV systems and 1 for solar thermal.
                                                                                                                        Page 84



MASSACHUSETTS

Grants for Pellet Fueled Heating Systems                                                                   ($525,000)
Provides funding to install space heating systems which are fueled with biomass pellets. ‘Biomass Pellet’ includes
pellets made from compacted sawdust, wood chips, bark, and agricultural crop waste. Pellets made from non-renewable
resources (waste paper, or petroleum/coal based products) are ineligible.

Install Biomass Heating System                                                                               ($500,000)
Funds are being used to install a biomass heating system at the Quabbin Reservoir Visitor Center, including an
educational kiosk. The Quabbin Reservoir supplies water to Metro Boston and is surrounded by thousands of acres of
protect lands. This is a destination for many of the states science classes learning about water and nature.

Energy Audit Program:
DOER provides funding for certified energy audits and renewable feasibility studies to identify projects eligible for ECIP
or AEPP funding. Information gathered in the course of these studies is used to support other DOER applications.

Grants to Study the Feasibility of Developing Wind Resources in Communities Served by Municipal Light
Departments                                                                                                          ($400,000)
The Energy Audit Program (EAP) will provide technical assistance to those communities that are interested in exploring
the feasibility of developing utility scale wind projects. The site(s) must be owned by and be under the regulatory
jurisdiction of a city, town, regional school district, regional water, or wastewater district. Funding for the study must not be
available from any other source. Communities served by municipal light departments are targeted because they do not
have access to funds derived from system benefit charges.

Energy Audits for Municipal Buildings                                                                          ($500,000)
DOER will provide funding for certified energy audits to identify projects eligible for ECIP funding. To date 40
communities have sought assistance.

Other Activities:
• Enrolled over 4MW of state projects in the first forward capacity market auction which will result in annual payments
    of $300,000+ to the Commonwealth.
• Facilitated funding for the installation of a biomass heating system at the visitor’s center of the Quabbin Reservoir.
    This facility is operated by the Massachusetts Division of Parks and Recreation.
• Sought and succeeded in winning federal Clean Renewable Energy Bond financing for 1 MW of solar PV projects
    over 12 state facilities in coordination with MassDevelopment and state Leading by Example program.

Legislation and Regulatory Affairs

BioFuel Legislation:
The legislation requires all diesel and home heating fuel sold in the Commonwealth to contain a minimum amount of
renewable, biobased alternatives in their blends, with that amount rising from 2 percent in 2010 to 5 percent in 2013.
These mandates will help build Massachusetts’ emerging biofuel refinery and distribution sector. Several other states have
biodiesel content standards, but Massachusetts would be the first to establish a biofuel standard for home heating oil – of
particular significance because the Northeast makes much greater use of oil for home heating than other parts of the
country.

The bill also exempts from the state gasoline tax ethanol derived from sources such as forest products, switchgrass and
agricultural wastes. Massachusetts would be the first state in the nation to provide a tax incentive for cellulosic ethanol.
The gas-tax incentive for cellulosic ethanol is projected to create 3,000 new jobs in Massachusetts and pump $320 million
into the economy as the advanced ethanol is brought to market.
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MASSACHUSETTS

Monitor interconnection projects:
DOER assisted numerous entities in their consideration of installing distributed generation. Examples include facilities
owned by the Commonwealth (CHP at 3 prisons, 1 wind project at a university, and PV at numerous sites). DOER has
also assisted numerous private sector companies in early stages of considering CHP projects; Ice River Springs (water
bottling), Polartec (fleece mill), Ecotarium (museum), Crane Paper (currency printing), Whole Foods (biodeisel CHP), and
a greater Boston hotel association.

Analyze decoupling options:
DOER has been heavily involved in the state’s decoupling proceeding (DPU 07-50). As of September 30, 2007, DOER
had filed comments to encourage a decoupling approach that would stimulate installation of distributed energy resources
(including efficiency and distributed generation).
                                                                                                                  Page 87



MICHIGAN

Michigan Energy Office
P.O. Box 30221
611 W. Ottawa - 4th Floor
Lansing, MI 48909
Phone: 517.241.6228
Fax: 517.241.6229
Website: http://www.michigan.gov/energyoffice


State Facilities
• Analyze cost-effective energy efficiency opportunities in state facilities; assist with upgrading facilities via energy
     performance contract procurements.
• Publish The Energy Observer – a quarterly technical bulletin for facility managers.
• Assist the Department of Management & Budget and others to reduce facility energy costs by 10% by conducting
     feasibility studies, benchmarking, project development, troubleshooting, monitoring and recognition. Serve as Energy
     Use Reduction Coordinator for the Department of Labor & Economic in 2008

Green Lodging Michigan
• Certify hotels, motels, resorts, and bed & breakfasts that have undertaken energy
    efficiency and green practices.
• 10 facilities have been certified since the program launch in October ’06.
    www.michigan.gov/greenlodging

Rebuild Michigan
• Provide grants to community organizations to promote energy efficiency in the
   commercial/institutional building sectors; assist local partners with energy audits for retrofit projects and encourage
   development of community resources for renewable energy generation.
• Conduct technical workshops for Rebuild Michigan clients and consultants to further energy efficiency education and
   awareness. Offer funding for complimentary workshops sponsored by organizations that target Rebuild MI groups.
• Assist Rebuild Michigan partners to initiate ENERGY STAR benchmarking and recognize goal achievement.
   Organize and publish case studies to highlight benefits of energy projects
• 488 public agencies have enrolled in this program since 1998. See www.michigan.gov/eorebuild

Michigan Energy Demonstration Centers
• Energy Office supports eight centers located throughout the State. Centers promote energy efficiency, renewable
    energy, and green building solutions for Michigan residents and businesses.
• Past year 8,192 persons attended a tour or seminar at a Center. www.warmtraining.org/medc/

ENERGY STAR Promotion
• Change A Light/Change Michigan campaign in October 2007 implemented by Urban Options in Mid-Michigan
   resulted in 15,000 CFL’s being sold in 3 days.
• Statewide program includes Michigan Interfaith Power & Light, Small Business Association of Michigan and several
   environmental organizations.
• Award annual grants to five builders to build and promote ENERGY STAR homes.
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MICHIGAN

Clean Cities Program/Alternative Transportation Fuels
• Promote alternative fuels, refueling infrastructure and clean vehicle technology in Clean Cities regions (including the
    greater Detroit area, Washtenaw County, the greater Lansing area and West Michigan) and along highways that link
    Ann Arbor, Detroit, Lansing and Grand Rapids.
• Assist MI Clean Cities coalitions to become sustainable community-supported organizations.
• Coordinate state government fleet strategies to reduce petroleum use and vehicle emissions and to achieve
    objectives, especially within the Clean Cities areas.

Solar Energy
• Since 2002, 16 grants have been awarded to universities,
    cities, and counties to install and demonstrate a 10 kW
    photovoltaic system. Grants can provide up to $50,000 for
    the PV systems.
• Great Lakes Renewable Energy Assoc. (GLREA) conducted
    a solar energy education and aggregated purchasing project
    in Ann Arbor, Grand Rapids, and Oakland County.
• GLREA 2nd Michigan Energy Fair attracted 4,000 persons
    in June 2007.

Wind Energy
                                                                               Michigan Energy Fair, Onekama
• Wind Energy & Economic Development Forum attracted over
    100 persons in April 2007.
• Wind energy conference at Michigan State U. focused on manufacturing opportunities, community wind, and
    commercial wind developments and attracted 280 in Sept. 2007.
• Wind Working Group organized a tour of Michigan’s first commercial wind farm in the Thumb.
• State Wind Outreach Team was organized to inform key stakeholders.
• Michigan State University Extension is providing assistance to farmers and has implemented an anemometer loan
    program. Wind speed data is posted on the MSUE web site for nine sites.

Biomass Energy
• Award DOE funds annually to cities, nonprofits, and universities for bioenergy projects. During the past 5 years, state
    grants exceeding $500,000 leveraged more than $2 million in investments.
• Publish Ethanol Coalition of Michigan newsletters for state legislators and other stakeholders
• Develop biogas workshops and outreach programs in collaboration with universities, Michigan State University
    Extension (MSUE), USDA, and the Small Business Association.
• Collaborate with Michigan State University’s Wind Energy Project to identify rural opportunities for wind and
    anaerobic digestion
• Publish a state wood residues discussion paper in January 2006.
• Increase use biofuels and bio-based fleet products within state and other government fleets.
• Participate in a Midwest regional collaborative on biomass data gathering, analysis and resource sharing.

For additional information, contact: John Sarver at sarverj@michigan.gov or 517.241.6280; or Jan Patrick at
patrickj@michigan.gov or 517.241.6153.
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MINNESOTA

Minnesota State Energy Office
85 7th Place East, Suite 500
St. Paul, MN 55101
Phone: 651.296.4026
Fax: 651.297.7891
Website: http://www.commerce.state.mn.us


Minnesota State Energy Office
The Minnesota State Energy Office (SEO) promotes energy conservation, efficiency and renewable energy to Minnesota
consumers, businesses and policymakers through educational outreach and technical assistance, targeted financial
incentives, and demonstrations of market-ready new technologies. SEO staff bring together government, business, non-
profit and education stakeholders to develop policies and programs beneficial to Minnesota and the nation. Funding by the
U.S. Department of Energy (USDOE) State Energy Program (SEP) has allowed Minnesota’s SEO to encourage and
support the development of many state and private initiatives, including the nation-leading E85 fueling station network.

                            Minnesota E85 Development
                                                                               Ethanol
                                                                               Over the last ten years, Minnesota has
                                                                               partnered with USDOE Clean Cities
   350                                                          20,000,000     Program and the American Lung
   300         Stations
                                                                18,000,000     Association of Minnesota (ALAMN) to
               Gallons
                                                                16,000,000     advance the use of homegrown E85 fuel.
                                                                               The SEO and the ALAMN have used SEP
                                                                           Gallons of E85
# E85 Stations




   250                                                          14,000,000
   200                                                          12,000,000     funds to leverage over $8 million dollars in
   150
                                                                10,000,000
                                                                               public and private investment to develop a
                                                                8,000,000
                                                                               statewide E85 fueling station network.
   100                                                          6,000,000
                                                                4,000,000
                                                                               Today, Minnesota leads the nation with
    50
                                                                2,000,000      316 E85 stations. In 2006 Minnesota sold
     0                                                          0              over 18 million gallons of E85, a 125%
         1999 2000 2001 2002 2003 2004 2005 2006 2007                          increase over 2005 and 600% increase
                                                                               from 2004. In 2006, the average price for a
gallon of E85 was typically 35 to 40 cents lower than regular unleaded gasoline.


Wind Energy Advancement
Minnesota has long been a national leader in the development of wind power. Beginning in 1982, the SEO has invested
SEP funds in its Wind Resource Assessment Program, which created a network of wind monitoring towers to quantify the
potential of wind power within the state. This long-term commitment to data collection and analysis provided valuable
support to the state’s wind industry in building confidence in
the economic viability of wind development within the state.
SEP funding of the Wind Resource Assessment Program
helped wind grow from an emerging technology to a multi-
billion dollar industry with more than 1,000 MW of capacity
installed by the end of 2007.
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MINNESOTA

Schools for Energy Efficiency
In 2002 the SEO awarded a grant (from the SEP formula funds) to Hallberg Engineering, Inc. to develop and launch
Schools for Energy Efficiency (SEE)—a program to help public schools reduce energy use while teaching faculty, staff and
                                                        students ways to be good energy stewards. By the end of
                                                        2007, over 250 schools in 15 school districts participated in
                                                        SEE, saving an average of 12 percent of total annual energy
                                                        use. Total energy cost avoidance since the program’s
                                                        beginning, as verified by Portfolio Manager energy tracking, is
                                                        approaching ten million dollars. The cumulative CO2
                                                        avoidance due to SEE is 850 million pounds.

                                                    SEE now includes school districts in New Jersey and New
                                                    Orleans. Eleven Minnesota school districts participating in the
SEE program have been recognized with the ENERGY STAR® Leader Award—more than 40% of the school districts
nationwide receiving ENERGY STAR® Leader Awards.

Energy Information
The State energy office promotes energy conservation, energy efficiency, and renewable energy options to citizens of the
state through public outreach, publications and technical assistance.

Energy experts in the State energy office attend conferences, trade
shows, energy fairs, the State Fair, and other events throughout the
state, distributing energy information to selected audiences and the
general public.

Through a comprehensive series of publications, the SEO provides
unbiased information on energy efficiency, wind and solar power,
bioenergy, energy delivery, and more. On subjects ranging from
insulation to air-sealing to furnaces to lighting, the Home Energy
Guides offer advice on choosing energy-efficient products and
services, and valuable tips—whether home owners are doing the
work themselves or hiring others.

In FY 2007, the SEO had over 100,000 direct contacts, 200,000 unique website visits, and distributed more than 105,000
publications and CDs.
                                                                                                                 Page 91



MISSISSIPPI

Mississippi Development Authority
P.O. Box 849
510 George Street, Suite 300
Jackson, MS 39205
Phone: 601.359.6600
Fax: 601.359.6642
Website: http://www.mississippi.org/content.aspx?url=/page/3331&


The Energy Division of the Mississippi Development Authority provides leadership and direction on energy management
programs for the state of Mississippi. Energy’s programs and services are designed to ensure an environmentally
acceptable, adequate and dependable supply of energy. The Division strives to promote economic development, improve
energy efficiency, facilitate the deployment and acceptance of energy efficiency and renewable energy technologies,
increase the responsiveness of public-funded technology efforts to private sector needs, and help the public prepare for
and survive disasters.

Education and Outreach
Energy’s education and outreach initiative is made possible primarily through SEP funding. The initiative is a compendium
of programs and activities designed to energize Mississippi educators, students and consumers and remind them of the
message to use energy wisely and efficiently. These programs fuel energy education and outreach efforts across the state
and nation by creating effective networks of students, educators, businesses, government and community leaders to
design and deliver objective, multi-sided energy education programs.

•   Energy Network Program activities reach on the average of 50,000 students, 200 teachers and school
    administrators, and 50,000 visitors to booths and at more than 80 presentations at special events.

•   National Energy Education Development (NEED) Program. During 2007, the Division’s NEED program trained 32
    new teachers. Mississippi also received NEED’s 2007 State of the Year Award. Several Mississippi schools were
    recognized during the National Energy Youth Achievement Awards Ceremony in Washington, D.C.

•   Energy Patrol Program addresses energy awareness at the elementary level. Students patrol school buildings
    looking for areas where energy is being wasted or mismanaged. The Division provides the training manual and
    videotape to schools. As well, Energy hosts teacher resource corners at regional science fairs and state and national
    educational conferences. This popular program was implemented in more than 58 schools in 2007.

•   Newspaper Educational Tabloid Section Project increased students' awareness, understanding, and knowledge of
    energy resources and environmental issues. The eight-page, full-color tabloid addressed types and sources of
    renewable energy sources, activities, geology, recycling, and other environmental issues. The tabloids were
    distributed to more than 45,000 students in more than 250 schools statewide.

•   Renewable Energy Day provided over 1300 elementary and secondary students educational activities and
    interactive presentations on renewable and nonrenewable energy resources, solar energy, recycling, composting,
    alternative fuels, conservation, biomass, and forest resources.

•   Regional Middle School Science Bowl, a fast-paced and challenging science and math academic competition was
    implemented during 2007 in collaboration with the Mississippi School of Mathematics and Science. Eighty-five
    students from seventeen schools, along with 26 teachers participated in the regional competition exceeding Division
    goals set for this first regional event.
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MISSISSIPPI

Alternative Fuels Initiative
SEP funding augments the Division’s ability to facilitate outreach and awareness of alternative fuels and vehicles. The
Division leverages the funds to provide marketing and financial support to promote Mississippi high schools in the Dell-
Winston School Solar Car Challenge, which helps motivate high-school students in science and engineering and teach
them how to build practical solar cars. Four groups of Mississippi high school students competed in the Solar Car
Challenge, including two teams that brought home first-place honors in their respective divisions. The Energy Division also
provided resources to the Challenge X Competition for university students to participate in hands-on automotive
research and development at the leading edge of technology using contemporary industrial practices. A Mississippi
University won first place in the 2007 event.

Rural Business Opportunity Initiative
The Rural Business Opportunity Project is a partnership between National Association of State Energy Officials and the
State of Oregon to promote energy awareness in the agriculture industry. The project is entitled “Promoting energy
projects in economically distressed counties in Mississippi and is made possible through a USDOE Special Projects
funding. Information on financing, farming applications and technologies as well as highlights about sustainable farming
practices in and around the state is provided to rural business and agriculture/aquaculture outlets that need extra
assistance to keep business moving forward.

State Energy Management Program (SEMP)
SEMP is mandated by state law and designates the Energy Division as primary resource for energy efficiency in state-
owned or state-leased building and facilities. SEP funded, the SEMP Program monitors agency energy consumption
levels and provide technical assistance and training to implement energy management projects. Under SEMP, 35 Energy
audits were performed and 68 Energy management plans were developed and submitted to the respective entities.
Technical assistance was provided to 46 state agencies, community colleges and institutions. 6 SEMP Awards were
issued in the following categories: 2 for Energy Efficiency/Energy Management; 1 for Alternative Financing; 1 for
Innovative/New Technology; 2 for Effective Program Implementation and Management. Based on energy consumption
through the Energy Management System, state agencies and institutions showed a reduction of 24.20 percent in
Consumption compared to FY 2006.

Rebuild Mississippi Program
Rebuild MS establishes a collaborative relationship with public/private entities, institutions of higher learning, community
colleges, hospitals and faith-based institutions that have interest in and/or expertise in energy conservation. Partners
have equal access to grants, loans, technical and financial assistance, and aid in writing action plans. More than 30 new
partners joined Rebuild in 2007. Rebuild MS Partners now exceed 130.

ENERGY STAR Program
As an official ENERGY STAR Partner, the Energy Division promotes consumer awareness of ENERGY STAR products.
The Division was a participant in the annual Change a Light, Change the World campaign that challenges Americans to
switch to lighting products that have earned the ENERGY STAR label. During 2007, the Division’s program reached over
260,000 customers through dissemination of publications, TV and newsprint that affected all regions of the state.
                                                                                                                       Page 93



MISSOURI

Missouri Energy Center
P.O. Box 176
1101 Riverside Drive
Jefferson City, MO 65102-0176
Phone: 573.751.2254
Fax: 573.751.6860
Website: http://www.dnr.mo.gov/energy/index.html


The Missouri Energy Center helps ensure adequate energy supplies, promotes energy efficiency and advances the use of
                      Missouri's indigenous energy resources, especially renewable resources.

                                          State Energy Program (SEP) Activities

Utility Energy Efficiency Program Funding
The Missouri Energy Center participates in regulatory proceedings of electric and natural gas utilities to encourage utility
investments in energy efficiency programs for their residential, commercial and industrial customers and helps utilities
design these customer programs. As a result of these efforts and voluntary partnerships with municipal electric utilities,
cumulative funding commitments for utility energy efficiency programs from 2001 through 2007 were over $18.6 million.
Through the Energy Center's work with electric utilities' resource planning efforts, utility funding for customer programs is
projected to increase significantly beginning in 2008 to approximately $20 million annually, increasing the cumulative
commitment to $38 million.

Missouri Wind Farms
In 2005 the Missouri Energy Center published an updated assessment of Missouri's wind resources. The resulting set of
wind maps helped spur business decisions to locate utility-scale wind development in Missouri. As of October 2007, four
wind farms are operational or under construction in Missouri and a fifth project has recently been announced, bringing the
total wind capacity to 161 megawatts. The MDNR-EC has undertaken a study with partners -- U.S. Department of Energy,
the University of Missouri-Columbia, Aquila, AmerenUE, Empire and KCP&L -- to install wind-measuring equipment on 10
tall communication towers to help inform potential investors of utility-scale wind generation.

Schools/Local Government Energy Loan Program
Since 1989 the Missouri Energy Center has offered low-interest loans to schools and local governments for the installation
of energy efficiency measures. Borrowers repay loans through cost savings generated by the projects. Based on an
expected 20-year life of the measures, annual savings as of FY 2007 were $11.6 million. Cumulative savings in FY 2007
totaled over $93 million -- savings that allow funds from lower utility bills to be redirected to education and essential public
services.

Industrial Energy Audit Program
Evaluating alternative investments in capital intensive equipment and related process improvements is inherent in any
organization that uses large machinery to make products or provide services. Unfortunately the menu of investment
options often fails to include cost effective energy efficiency opportunities. To make an informed choice decision makers
need data on initial cost, operating cost, rate of return, financing options, payback period, and an assessment of risk,
including any impact on product quality, safety and production schedules. The Missouri Energy Center recognized this
need and partnered with the University of Missouri-Columbia (UMC) to secure U.S. Department of Energy funding for an
Industrial Assessment Center at UMC. UMC faculty, students and Energy Center staff provide free energy efficiency
audits and recommendations tot help small and medium-sized manufacturers reduce their operational costs with the goal
of boosting the profitability and stability of the industries. During its first year of operation, 12 energy assessments were
performed, which will save an average of $145,000 in energy costs for each facility.
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MISSOURI

Missouri Energy Efficiency & Renewable Energy Set-Aside
In response to EPA's air quality improvement requirements, Missouri adopted an oxides of nitrogen (NOx) cap and trade
program. The Missouri Energy Center worked with the Missouri Air Pollution Control Program and utility and industry
stakeholders to set-aside 300 NOx allowances to be awarded annually for eligible energy efficiency and renewable energy
(EE/RE) projects that reduce NOx emissions from power plants. Successful EE/RE projects can receive awards for up to
seven years. The awards are in the form of NOx allowances that can be sold to the highest bidder; recent market value of
NOx allowances has ranged from $2500 to $3000 per allowance. Missouri is one of a handful of states that has
incorporated this set-aside in its environmental regulations. Some of the first awards will be for Missouri's new wind farms,
helping to make the development of Missouri's wind resources more viable.
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MONTANA

Montana Department of Environmental Quality
P.O. Box 200901
1100 North Last Chance Gulch Room 401-H
Helena, MT 59620-0901
Phone: 406.841.5240
Fax: 406.841.5222
Website: http://www.deq.state.mt.us/energy/


STATE ENERGY PROGRAM SUMMARY
The Department of Environmental Quality coordinates state energy policy, planning and programming efforts for Montana.
The department offers a variety of programs to promote energy conservation and renewable energy development funded
through a State Energy Program grant from the U.S. Department of Energy (DOE) and state general funds.

                               State Energy Program(SEP) - U.S. Department of Energy
                                     SEP Expenditures and Montana Cost Share
  State FY        Federal SEP Expenditures        Cost Share          Total State Match                    Cost Share
  FY 2004                  $356,541                  80%                   $89,735                            20%
  FY 2005                  $385,600                  64%                  $219,764                            36%
  FY 2006                  $366,989                  76%                  $116,250                            24%
  FY 2007                  $292,604                  77%                   $84,500                            23%
      Totals              $1,401,734                 74%                  $510,249                            26%

Buildings Energy Code Support
Montana adopted the 2003 International Energy Conservation Code (IECC) in 2004. This code change is a significant
improvement over the previous state energy code. A series of statewide training sessions on the new code are conducted
each year for building code officials, builders and the design community through funding support from DOE. Program
activities include conducting workshops, providing on-site assistance to code officials on code compliance and
development of code training materials. Montana is also involved in adopting the latest version of the IECC. In 2007 the
SEP program participated in a number of stakeholder meetings on adopting the latest version of the IECC. Montana will
formally adopt the 2006 IECC in early 2008. A new round of code trainings will take place after the code is adopted by
local governments throughout Montana.

State Buildings Energy Conservation Program
Energy costs have risen dramatically in recent years. The current gas term contract for state agencies is 15 percent higher
than costs in 2005. The State Buildings Energy Conservation Program (SBEP) reduces operating costs in state facilities
by identifying and funding energy efficiency projects in state-owned buildings. Montana sells general obligation bonds to
fund project costs, and the savings resulting from the energy improvements repay the debt service on the bonds. Once
the bonds are retired, the state continues to realize savings over the life of the improvements. The SEP Program provides
support for engineering and technical services to SBEP.

The program has completed 67 projects to date. There are 21 additional projects in stages ranging from the study phase
to construction. The program has issued $14.75 million in general obligation bonds to fund project costs and operate the
program. Cumulative energy savings captured through FY06 totals over $9.2 million.

There are approximately 425 buildings owned by state government that are over 10,000 square feet in size. These
buildings use about 75% of the energy consumed by state government and likely have the most potential for energy
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MONTANA

savings. However, there is no mechanism to identify energy use by building, or to prioritize the buildings for energy work.
DEQ initiated a project in June 2006 to collect information on 350 buildings not yet served by the State Buildings Energy
Conservation Program. These buildings together with others already participating in the SBECP will provide information
to benchmark most buildings over 10,000 square feet in size and some representative smaller buildings. These buildings
will be compared using a database customized for Montana and considering age, use, and size. Buildings that appear to
have high-energy use per square foot will be targeted for further analysis and potential renovation.

Montana Climate Change Action Plan
In 2006, Governor Schweitzer directed the Department of Environmental Quality to establish a Climate Change Advisory
Committee and coordinate the broad-based group of citizens and interest groups in evaluating greenhouse gas reduction
opportunities. The committee and technical working groups developed a set of 54 policy recommendations to help reduce
greenhouse gas emissions to 1990 levels by the year 2020. The majority of policy recommendations deal with GHG
reductions in the energy supply, agriculture, forestry and residential, commercial and industrial sectors.

As part of this initiative, Governor Schweitzer also directed state agencies to lead by example and reduce energy
consumption in state facilities by 20 percent by 2010. The state energy office is actively involved in helping state agencies
identify and implement energy conservation opportunities that will meet the energy saving goals by 2010.

Residential Housing Market Transformation
SEP provides funding to transform the market for energy efficient housing in Montana. The program supports efforts
across the state to promote the ENERGY STAR Homes program to contractors and homeowners. The rise in natural gas
prices during the last three years has resulted in an increase in the demand for homes built to higher efficiency standards
than current building practices. In 2007 Montana worked to support an increase in the number of homes certified to the
ENERGY STAR new home construction standards. The department also worked with the Montana Department of
Revenue to provide a $500 tax credit for new homes in Montana that are certified as an ENERGY STAR home by a third
party verifier. The tax credit for ENERGY STAR homes applies to homes starting in the 2008 tax year.

Program activities include conducting on-site workshops with builders and sub-trades to promote ENERGY STAR
standards and energy efficient construction techniques. Builders are trained on energy efficient construction techniques
through the demonstration of diagnostic tools such as blower doors, infrared thermography and duct tightness testing.
Consumer training sessions focus on transforming the market for energy efficient housing by promoting the benefits of
ENERGY STAR building standards and state and federal tax credits. Montana offers a 25 percent state energy
conservation tax credit for new and existing homes. Montana homeowners received over $5.6 million in energy
conservation tax credits for improving the energy performance of their homes in 2005.

Alternative Energy Loan Program
In 2007 the Alternative Energy Loan Program reached the one million dollar milestone for total funding loaned out to
renewable energy projects on homes and businesses. The Alternative Energy Revolving Loan program was established
by the 2001 legislature (MCA 75-25-101-103,) to be developed and administered by the DEQ. Also in 2007, the program
celebrated the first completed commercial project at the Ten Spoons Winery in Missoula. A press event was held at the
scenic orchard in Rattlesnake Canyon where the participants could see the grid connected photovoltaic powered irrigation
system. The loan program also provided information on the $500 state income tax credit for renewable energy systems,
and the utility incentive for renewable demonstration systems with NorthWestern Energy customers at renewable energy
events around the state. The Sustainability Fair in Livingston, the Wind Festival in Judith Gap, Earth Day events, solar
home tours in Helena/Great Falls, and home shows were some of the marketing events completed in 2007.
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MONTANA



                                      State Energy Program Project Example

                                         University of Montana – Western
                                         Biomass Boiler Heating System
                                                 Dillon, Montana

    The University of Montana – Western college campus is presently heated with two conventional older steam
   boilers. These inefficient boilers provide space heating to 470,000 square feet of campus classrooms and aca-
  demic buildings. As part of the Fuels for Schools Program, the heating system was evaluated for converting to a
  single biomass boiler for all campus buildings. The initial engineering assessment showed that a fully automated
   wood chip boiler could save $130,000 in fuel costs for the school in the first year of operation. This project will
   provide substantial cost savings to the college and make use of a renewable resource. The State Energy Pro-
   gram in the Department of Environmental Quality is a partner in making this fuel conversion possible. The pro-
                                               ject was completed in 2007.

  The Fuels for Schools program has awarded a $400,000 grant to the University of Montana-Western through the
   FY05 Omnibus Appropriations Package. Total project costs are estimated to be $1.4 million. Approximately $1
   million in funding is secured through the State Buildings Energy Conservation Program (SBEP) in the Depart-
   ment of Environmental Quality. The general obligation bond is paid off over a ten year period. Funding from the
   U. S. Department of Energy State Energy Program allows Montana DEQ to provide funds for engineering stud-
                     ies and technical assistance to make this biomass heating system a reality.
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NEBRASKA

Nebraska State Energy Office
P.O. Box 95085
Lincoln, NE 68509-5085
Phone: 402.471.2867
Fax: 402.471.3064
Website: http://www.neo.ne.gov

             Our mission is to promote the efficient, economic and environmentally responsible use of energy

                                 2008 STATE ENERGY PROGAM ACTIVITIES REPORT

The federally funded State Energy Program, more popularly known as SEP, is a vital part of the Nebraska Energy Office's
ability to provide innovative energy programs, services, education and technical assistance to Nebraskans. SEP allows
the Energy Office to leverage non federal dollars, as in our energy loan program, where the state's bankers, savings and
loan institutions and credit unions have invested more than $93 million in energy efficiency improvements in all sectors
throughout the State. SEP is often the catalyst in allowing the Energy Office to create innovative energy programs such
as the Nebraska Green Build Program which constructs homes 30-50% beyond the highest ENERGY STAR standard. It
allows the establishment of partnerships with lenders, home builders, public and private groups, the University of
Nebraska, cities, utilities and others in joint ventures. SEP has also played a major role in educating the State's public
officials, tradesmen and women, professional engineers, designers, equipment and material suppliers, as well as the
citizenry on the latest energy technologies available in the marketplace. In Nebraska, SEP funding was the mechanism
through which its 1983 Model Energy Code was successfully upgraded to the 2003 International Energy Conservation
Code and through which on-going training is provided for code officials in enforcing the code. SEP is the gateway to
energy efficiency, the path toward independence from fossil fuels, and the portal for a more energy secure environment.

State Energy Program.
Nebraska's State Energy Program provides funds for the administration of formula and Special Project grants plus
required monitoring and reporting to the U.S. Department of Energy. SEP provides funds for the agency’s public
information activities such as maintenance of the Web site which can be found at http://www.neo.ne.gov/. The site
contains information on agency activities and includes the ability to download application forms and information such as:

•    the Nebraska Energy Quarterly. The Quarterly is an electronic newsletter with a distribution list of more than six
     thousand;
•    the state’s energy data base which is updated on an on-going basis as new energy data is released;
•    financing energy efficiency improvements with the Dollar and Energy Saving Loan Program;

          This oil-overcharge funded revolving loan program has generated $194.8 million in energy-efficiency
          improvements made by borrowers through December 31, 2007. Created in 1990, $24 million in oil overcharge
          funds has revolved more than eight times and leveraged $93.2 million from participating lenders. Ninety-three
          percent of the 24,113 energy project loans have been made in the residential sector.

•    building energy efficiency, building code training and information, the Nebraska Green Building Program; and
•    energy assurance including energy shortage management and emergency planning.

SEP Special Projects.
Nebraska has been awarded more than $2.3 million through 21 grants since 1996 when the national competition started.
Cost-share for these projects exceeds $11.6 million from non-federal sources. The value of all projects is more than $13.9
million through December 31, 2007. Recent awards include:
                                                                                                                     Page 100



NEBRASKA


•   Building Codes and Standards. On July 1, 2005, the 2003 International Energy Conservation Code (IECC)
    became the Nebraska Energy Code. Under a SEP Special Projects grant, the Energy Office provided workshops
    targeting local code officials, builders, contractors, architects, engineers and heating, ventilation and air-conditioning
    installers. More than 1100 individuals have participated in training through 2007. A total of 20 Nebraskans were
    certified as Residential Energy Inspector/Plans Examiners, 17 Nebraskans were certified as Commercial Energy
    Inspectors, and seven Nebraskans were certified as Commercial Energy Plans Examiners.

•   Rebuild America. A SEP-Special Projects grant awarded in 2005 through the Rebuild America category, enabled
    the Energy Office to offer energy performance evaluations and the Continuous Commissioning Process in the
    commercial sector. This 2-year project at the Univeristy of Nebraska implemented the Continuous Commissioning
    Process in 26 buildings with a combined total of more than 7.3 million square feet. Annual utility cost savings total
    $3.5 million, with total investments of $13.7 million. The average simple payback is about four years.

•   Industries of the Future. A SEP-Special Projects grant awarded in 2005 through the Industries of the Future
    category, enabled the Energy Office to offer energy assessments and the Continuous Commissioning Process in the
    industrial sector. Eighteen building owners were recruited to participate in this project. Preliminary energy
    evaluations were conducted on 17 buildings, and comprehensive energy studies were conducted on six facilities.
    Advanced Industrial Technology Processes thus far have been implemented in three buildings.

Other activities.
The Nebraska Energy Office operates a number of other federal and state energy efficiency programs:

•   New Home Construction. The Nebraska Energy Office maintains an Internet-based library of recycled content
    product materials, dozens of efficient design details appropriate for new home construction and an informational
    series dedicated to design and building issues that stress resource conservation.

•   Zero Energy/Green Built Homes. The Nebraska Energy Office has committed $500,000 in oil-overcharge funds
    towards the development of Nebraska's first Zero Energy-Green-Built home. In addition, 54 builders received
    training in 2007 on the requirements of becoming a Nebraska Certified Green Builder, and 29 new homes were
    committed to the Green-Built process.

•   Low Income Weatherization Assistance Program. The agency has operated the Low Income Weatherization
    Assistance Program since 1979. To date, energy-saving improvements have been made in 59,897 homes saving an
    estimated $79.5 million. The agency also provides weatherization services to Low Income Home Energy Assistance
    Program households.

•   Wind Powering America. Nebraska possesses the 6th best wind energy resources in the nation, but has struggled
    to harness that energy to produce electricity because of the state’s traditionally low electric rates. Through the
    support of DOE’s Wind Powering America, the state has been able to chart a course that lead to small, but growing,
    wind generation capacity. In 2007, the Energy Office completed a grant from the Department of Energy to deliver
    wind energy information to interested Nebraskans, and to continue the work of the State Wind Working Group. At the
    end of 2007, nearly 74 megawatts of electricity was generated from turbines at six sites.

•   National and Regional Organizational Support. Since 1992, the Energy Office has served as the administrative
    headquarters for the Governors’ Ethanol Coalition. The Office continues to provide support for both the Ethanol
    Coalition and the Governors’ Public Power Alliance.
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NEVADA

Nevada State Office of Energy
727 Fairview Drive, Suite F
Carson City, NV 89701-5493
Phone: 775.687.9700
Fax: 775.687.9714
WebSite: http://energy.state.nv.us


The mission of the Office of the Governor, Nevada State Office of Energy (NSOE) is to implement Governor Jim Gibbons’
balanced and cohesive energy policy, so that our citizens can have reliable, affordable, clean and diverse energy supply
while Nevada is keeping up with growth. Improving the energy infrastructure, diversifying the energy sources, and
encouraging the efficient use of energy will enhance the energy security of Nevada, the western United States and the
nation.

We also work with the Nevada State Legislators and Public Utility Commission as well as Co-Ops and Local Governments
for energy related policy development. Furthermore, NSOE conducts workshops and hearings for the adoption of energy
regulations and enforces regulations as required by the Nevada Revised Statute. NSOE also implements and coordinates
federal energy policies within the state of Nevada. The U.S. Department of Energy - State Energy Program (SEP) fund
has been supporting the majority of the personnel and the operational costs for NSOE. Furthermore, NSOE seeks and
applies for energy grants in collaboration with other state agencies, non profit organizations, universities, and industry in
Nevada and neighboring states.

We are fortunate here in Nevada to be blessed with one of the largest supplies of renewable energy anywhere in the
world. For example, Nevada has about 1500 MW of identified geothermal resources that can be commercially developed
and supply nearly a third of the state’s current power needs. We have developed 20% of this resource and an additional
20% will be coming on line by 2010. We were one of the early adopters of the renewable portfolio standard (RPS) that
requires 20% of electricity sales come from renewable energy and energy efficiency measures by 2015. The challenges
Nevada has to overcome for our renewable energy development are 1) permitting, specifically the BLM permitting process
since about 86% of Nevada land is owned by the federal government, 2) Infrastructure such as transmission, and 3) a lack
of long term federal incentives such as Incentive tax credit (ITC) and production tax credit (PTC).

To ensure that we achieve our goal of developing our renewable energy resources and overcome our challenges,
Governor Gibbons issued three renewable energy related executive orders. In February 2007 with the first executive
order, Governor Gibbons has asked the state agencies to streamline the permitting process for renewable energy
industries…cutting red tape and encouraging companies to invest in Nevada (http://gov.state.nv.us/EO/2007/EO-Energy-
2007-02-16.pdf). He also formed an advisory committee to tackle the issue of “transmission access” for our renewable
energy industries (http://gov.state.nv.us/energy/). A lot of our renewable resources are located a long way from power
lines. This committee was charged with identifying and recommending ways to join those resources with our transmission
infrastructure. This committee has assessed our renewable energy resources and transmission infrastructure. As a
result, they produced three maps for the developers: 1) Renewable energy zones and transmission interconnect map, 2)
Renewable energy and transmission constraints map, and 3) Military airspace and radar interference constraints map.
The final report and the maps are posted on http://gov.state.nv.us/energy/ . In April 2007, Governor Gibbons formed the
Nevada Climate Change Advisory Committee to address the issues of greenhouse gas emission reduction in Nevada
and in July 2007, we joined the Climate Registry (http://gov.state.nv.us/climate/). NSOE has been supporting these
activities via DOE-SEP and WGA funds.

NSOE has worked with the Nevada Legislators and several stake holders in support of developing incentives for the
permanent solar PV program, enhanced net metering, the pilot program of wind and hydro, and commercial green
buildings. We also supported the enactment of the use of efficient light bulbs (Nevada is the first state to adopt such a
                                                                                                                    Page 102



NEVADA

legislation) and the requirement of home energy rating prior to its sale. The DOE – SEP funds supported three
workshops and an hearing of the regulation to implement the partial property tax abatement for commercial green
buildings that achieve certain level of energy conservation and sustainability (http://energy.state.nv.us/LEED/AB621.htm ).
The DOE –SEP funds further supported the LEED-101 workshop taken by the NSOE staff and key legislators and their
staff.

NSOE has worked cooperatively with the Energy and Environmental Building Association to present two “Houses That
Work” sessions in both northern and southern Nevada. These workshops serve to provide building professionals with
ways to improve the performance, efficiency, durability, safety and health of the homes they build making them a better
value for their customers and incorporating “green” practices into their business formulas.

Nevada is the top state in the nation for building ENERGY STAR homes (75%). However, these homes are mostly
located in southern Nevada. In order to promote energy efficient residential construction in Northern Nevada, we have
been supporting the northern Nevada homebuilders achieving the highest energy efficiency rating through the annual
Governor’s Award and advertising their homes in home magazines.

NSOE has been supporting an Energy Efficiency Training Program for State government facility operators since 2004.
The program offers training funds in the amount of $150 per student per class to attend classes in the Utility Supervisors
program offered by the Nevada Higher System of Education’s Management Assistance Program. After completing the
program, participants receive a Facility Operator Certification. This program in 2007 was expanded to include students
from local governments.

Nevada is active in promoting the adoption of the most recent International Energy Conservation Code (IECC) by local
jurisdictions in the state. NSOE in collaboration with other stakeholders developed the IECC instructional materials to train
building officials, architects, engineers and construction industry professionals. Several training sessions were held in both
northern and southern Nevada.

The Energy Assurance and Emergency Operation Plan for the state was updated and revised to comply with the
NASEO guidelines.
Page 103



NEW HAMPSHIRE

New Hampshire Office of Energy and Planning
57 Regional Drive, Suite 3
Concord, NH 03301-8519
Phone: 603.271.2155
Fax: 603.271.2615
Website: http://www.nh.gov/oep/


                                        NEW HAMPSHIRE INITIATIVES
                             SUPPORTED BY STATE ENERGY PROGRAM (SEP) FUNDS
                         IN COMBINATION WITH OTHER STATE AND FEDERAL RESOURCES

Granite State Energy Efficiency (GSE2). OEP, in collaboration with the Jordan Institute, a New Hampshire non-profit,
will seek to vastly increase energy efficiency in New Hampshire buildings by establishing a privately funded, $30-50 million
revolving loan fund. Working first with the state's 450 school buildings and then extending services to all building sectors,
GSE2 will serve as a hub for energy efficiency information, finance and delivery. GSE2 is funded with DOE competitive
grant funds and matching funds from OEP.

NH Biofuels Initiative. OEP provides funding that supports research, development, and use of state-based production of
biodiesel (e.g. waste fats, alternative crops) and cellulosic ethanol; pilot program now in place on Department of
Transportation use of biodiesel in trucks.

Business Energy Efficiency Program. OEP provides funding to the NH Business Resource Center, Department of
Resources and Economic Development, to finance comprehensive energy audits for eligible NH businesses.

Renewable Energy Generation. OEP has advocated for increases in renewable generation through legislative and
regulatory proceedings; supported successful conversion of a 50 MW fossil fueled generator to biomass in 2006;
participated in siting of New Hampshire’s first commercial wind facility in 2007, anticipate applications from additional wind
and biomass developers in 2008; also providing technical support for Governor’s Lynch’s 25 by 25 initiative, under which
25% of the state’s energy used will be generated from renewable resources by the year 2025.

NH Clean Cities and Alternative Transportation Fuels Programs. OEP provides funding to support the program,
which has displaced the use of 1,2000,000 gallons of foreign-imported petroleum fuels with natural gas and American-
made biofuels (biodiesel and ethanol) as of 2006; promotes anti-idling efforts to reduce emissions and health risks of idling
vehicles; now exploring opportunities for compressed natural gas vehicles refueling; reducing idling

Home Heating and Transportation Fuels Monitoring. OEP tracks and posts on line fuel prices and supplies; we
consistently hear from the public how valuable a resource this is.

State Energy Emergency Response Plan. OEP updated the Plan in 2007, to anticipate and respond to potential
shortages of electric power (most likely in summer) and natural gas and foreign fuel imports (most likely in winter).

Renewable Portfolio Standard. A state RPS was adopted in 2007 session of state legislature, for which we provided
support and technical assistance.

State Agency Reductions in Energy. OEP has provided support to agencies to meet the mandate of Governor Lynch’s
Executive Order calling for state agency reduction of energy usage, in state buildings, fleets, and increase in efficiency of
buildings and equipment.
                                                                                                                 Page 104



NEW HAMPSHIRE

PUC proceedings. OEP participates in proceedings to meet the mandates of the Energy Policy Act, in particular time of
use and real time metering options; energy efficiency program design and monitoring; and the “decoupling” docket to
minimize the barriers that may exist for regulated utilities to fully embrace energy efficiency program, fearing a loss of
revenue.

Transmission Constraints. OEP in active in efforts to upgrade transmission in northern New Hampshire, providing
support to stakeholders and legislators that are exploring the options to upgrade lines in rural areas to facilitate
interconnection to proposed biomass and wind generation.

Regulatory Policy Efforts, including leadership in the Energy Planning Advisory Board, the Energy Policy Commission,
the Climate Change Task Force, and regular consultation with ISO-NE and other regional entities involved in the
wholesale electric market.
.
Page 105



NEW JERSEY

New Jersey Office of Clean Energy
44 S Clinton Ave
PO Box 350
Trenton, NJ 08625-0350
Phone: 609.777.3300
Fax: 609.777.3330
Website: http://www.njcleanenergy.com/


New Jersey’s Clean Energy Program in conjunction with the State Energy Program is a statewide Program administered
by the New Jersey Board of Public Utilities (NJBPU) that promotes and deploys energy efficiency and renewable energy
programs for all New Jersey ratepayers – including residences, businesses, schools and municipalities. For more
information on New Jersey’s Clean Energy programs, go to www.bpu.state.nj.us and click on New Jersey’s Clean Energy
Program.

                                                  Clean Energy Program

                             2006 Program              Avg. Cost of            Cumulative Life           Cumulative Life
                                 Cost                 Annual Savings           Energy Savings            Bill Reduction
                                                                                 (2001 – 2006)
Electric                  $138,483,000             $0.050                    18,413,450,000            $1,841,345,000
                                                                             (kWh)


Gas                       $32,714,000              $0.358                    480,810,430 (therms)      $480,810,430




In addition to the above, New Jersey’s Clean Energy Program has helped to install over 50 MW of solar in New Jersey
during the last 6 years. From 9 projects of 6 kW in 2001, to over 2,500 by the end of 2007. We have had as much as
triple digit growth in our solar program per year in the last 4 years. The main reason for this is our integrated approach of
rebates, net metering up to 2 MW, standardized interconnection to reduce barriers, a Renewable Energy Portfolio
Standards for solar set aside of 2.12% by 2021 (1,500 MW to 2200 MW) and a Solar Renewable Energy Certificate
(SREC) trading system. The establishment of the SREC trading platform that NJBPU manages has enabled the program
to reduce the simple payback for solar systems to 10 years on average. This program is so successful that the NJBPU is
transitioning from rebates to financing the full solar system through SRECs.

Because of New Jersey’s Clean Energy Program to advance and promote the implementation of Energy Efficiency for
both electric and natural gas and renewable energy, the majority of the SEP funds are used to promote and advance
renewable fuels and the development of renewable fuels infrastructure.
                                                                                                                     Page 106



NEW JERSEY

Several NJBPU Office of Clean Energy success stories funded through the SEP follow:

Pilot Photovoltaics Power Systems Program
The Phillipsburg Early Childhood Learning Center is receiving a $250,000 grant from the Pilot Photovoltaics Power
Systems Program for the installation of solar panels.

In 2002, the New Jersey Board of Public Utilities funded a Pilot Photovoltaic System to promote and facilitate the
implementation of renewable generation technologies, primarily photovoltaics (PV) and to incorporate LEED (Leadership
Energy and Environmental Design) standards into the schools’ design and construction processes for new buildings.

The Phillipsburg Early Childhood Learning Center through the New Jersey School Development Authority formerly the
New Jersey School Construction Corporation was successful in obtaining the grant and has currently completed the
installation of a 29.946 kW photovoltaic system. As part of the program’s requirement, the school registered with the
United States Green Building Council (USGBC) and has received its LEED silver certification. Funds from the United
States Department of Energy and from the New Jersey Clean Energy Program were utilized in funding this project. The
other two schools awarded a grant included Newark Science High and Neptune Community School. Both these schools
have not yet completed the program.

Wireless Energy Management Demonstration Project
The purpose and intent of this project was to demonstrate a wireless energy management system (EMS) capable of
providing low cost retrofits in existing facilities. The use of direct digital control (DDC) to manage the multiple components
of a building is one of the most effective means of reducing energy use, preserving indoor air quality and reducing the
environmental impact of buildings and structures. The largest barrier to retrofitting older buildings with state of the art DDC
is the high cost of running wiring and controls to all of the components in a heating ventilation and air-conditioning (HVAC)
system. This is particularly difficult in older buildings and large multi tenant or leased buildings.

The Annual Energy Savings $92,000 (cost $49,800) is based on the metered energy use which is one of the important
capabilities of this system. The strategies which achieved this savings were Fresh Air Control with CO2 monitoring, Hot
water Heater Control, Temperature monitoring and control.

The wireless EMS has demonstrated that it can achieve an enhanced level of building control and that the payback for this
is on the order of 6.5 months.

Alternative Fuel Vehicle Rebate Program
The NJBPU, Office of Clean Energy, has been working with local governments, state colleges and universities, school
districts and governmental authorities. The AFV Rebate Program provides rebates for the incremental cost of purchasing
an alternative fuel vehicle or a hybrid-electric vehicle, in lieu of a similar gasoline or diesel-powered vehicle.

Bio-diesel Fuel Rebate Program
The NJBPU, Office of Clean Energy, has continued the State’s bio-diesel Fuel Rebate Program for local governments,
state colleges and universities, school districts and governmental authorities. The Bio-diesel Fuel Rebate Program
provides rebates for the incremental cost of using bio-diesel, in lieu of 100% petroleum diesel fuel.
Page 107



NEW MEXICO

New Mexico Energy Conservation and Management Division
1220 S. St. Francis Drive
P.O. Box 6429
Santa Fe, NM 87505
Phone: 505.476.3311
Fax: 505.476.3322
Website: http://www.emnrd.state.nm.us/ecmd/


New Mexico Energy Conservation and Management Division
New Mexico is a leader in our nation’s clean energy economy. This past year Governor Bill Richardson, the Legislature,
state agencies, citizens, businesses and industry partnered in the passage of a large number of clean energy bills with
innovative tax incentives and ambitious standards designed to utilize its abundant renewable energy resources. The U.S.
Department of Energy ranks New Mexico first among all states in meeting more than seven percent of total retail electricity
sales with wind farms already installed. Our state ranks second in solar resources. The Energy Conservation and
Management Division (ECMD) is helping to position our state to become a powerhouse in the rapidly evolving clean
energy economy of the 21st century. 2007 was the most productive year in passing new legislation and accomplishing our
mission to promote environmental and economic sustainability.

Clean Energy Legislation Adopted in 2007
New Mexico passed a dozen clean energy bills during this year's legislative session. Two bills represent landmark clean
energy legislation: the Renewable Energy Transmission Authority and increases to the Renewable Portfolio Standard.
This legislation positions our state to competitively develop its vast renewable solar and wind energy resources and export
New Mexico's clean energy to other states.

The Renewable Energy Transmission Authority focuses on developing new transmission projects to promote renewable
energy. It is the first of its kind in the nation, and an innovative and bold move to stimulate clean energy production and
create high paying jobs, capital investment, and greater economic development in rural areas.

The Renewable Portfolio Standard complements the Renewable Energy Transmission Authority by requiring our state's
major utilities to produce more of their electricity from diverse renewable sources. Increased use of renewable energy will
not only create jobs, stimulate our economy and protect our health and environment; it will also help protect New Mexico
consumers from higher electrical rates caused by volatile natural gas prices.

Other legislation passed included amendments to the Renewable Energy Production Tax Credit, incentives for commercial
-scale generation of wind, solar and biomass facilities, "green buildings" tax credit, a new sales tax exemption for solar
energy equipment; standards for biodiesel use; and incentives for biodiesel facilities, and a tax credit for energy equipment
manufacturers. The 12 enacted clean energy bills were:

•    Renewable Energy Transmission Authority
•    Renewable Energy Production Tax Credit Amendments
•    Increase the Renewable Portfolio Standard
•    Sustainable Building Tax Credits
•    Energy Efficiency and Renewable Energy Bonding Act Amendments
•    Alternative Energy Product Manufacturers Tax Credit
•    "Solar-Ready Roofs" Act
•    Solar Covenants Legislation
•    Gross Receipts Tax Exemption for Solar Energy Systems
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NEW MEXICO


•    Biodiesel Standards Act
•    Biofuels Infrastructure Tax Incentive
•    Advanced Energy Tax Credits Act

ECMD oversees and implements the state’s clean energy program by managing and administering various plans that
reduce energy use, including the Renewable Energy Program, the Energy Efficiency in Buildings Program, and the Clean
Fuels and Efficient Transportation Program, all of which encourage new ways to make conventional energy sources
cleaner and reduce the amount of climate-changing greenhouse gases they produce.

Renewable Energy Program
Renewables lessen our dependence on fossil fuels and foreign oil. This program promotes the development and
production of solar, wind, biomass and geothermal energy. Tax credits, clean energy grants, and energy innovation
funding provide incentives for the advancement of these resources.

Solar: New Mexico has world-class solar energy, ranking second in the nation. It has the potential to meet 1,000 times
more than Public Service Company of New Mexico’s current demand. New transmission in our state would allow us to
export large amounts of clean energy. Our advancements in solar energy are possible thanks to strong leadership willing
to focus on solutions that provide real world incentives for citizens, businesses and schools.

Since the inception of the Solar Market Development Income Tax Credit in 2006, $3.4 million has been invested in solar
installations; of that, $687,000 in state solar credits was used to leverage $303,000 in federal tax credits. Ninety-eight
solar PV systems producing 253 kilowatts and 70 solar thermal systems generating 4.76 million BTUs per day have been
installed.

New Mexico State University (NMSU) built an 18-kilowatt photovoltaic parking structure for its Student Health Center. A
state clean energy project grant and NMSU's Southwest Technology Development Institute provided the funding for the
center. This utility grid-tied system converts the sun's energy into electricity for NMSU, with annual emission reductions of
over 111 pounds of nitrogen oxides, 77 pounds of sulphur dioxide, and 52,000 pounds of carbon dioxide.

The Energy Innovation Fund accelerates innovative development of clean energy technologies and provided funding for
two other solar projects at the university level and one solar project at a pueblo in New Mexico.

Wind: New Mexico’s potential for electricity generation from wind is enormous, especially on the eastern plains. Estimates
place New Mexico's annual wind energy potential at 435 billion kilowatt-hours. Our state could produce many times its own
electrical consumption, putting us in a position to export wind power. Our wind power program provides key data and
funding, and participates in joint studies that perform a critical role in the development of wind power in New Mexico.

A 100-meter-tall wind monitoring tower located southwest of Tucumcari provides high quality wind data to developers. The
tower, along with data collected from eight other promising sites, monitors trends in wind speed. This information is
instrumental in the development of utility-scale wind farms and further commercial development.

Biomass: Dairy manure and forest thinnings have the potential to provide affordable renewable energy. New Mexico
dairies produce more than 1.1 million tons of manure annually. The potential of converting dairy manure into energy is a
winning solution to reducing waste and greenhouse gas emissions, and avoiding groundwater contamination. Forest
thinnings reduce wildfire danger and promote healthy forests while also providing a fuel resource for biomass boilers.
Through funding, research and program management, ECMD saw progress in the biomass component of its renewable
energy program in 2007.
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NEW MEXICO

New Mexico State University received federal funds through the NASEO STAC solicitation managed by ECMD to
construct a two-stage anaerobic bio-fermentation unit to reduce dairy waste. The process produces methane gas to power
a 40-kilowatt engine/generator, and compost for soil amendment and for use at a commercial greenhouse operation,
thereby mitigating air and water pollution problems. In addition, this project received an Energy Innovation Fund award of
$120,000, in collaboration with Sierra Vista Growers and Gonzales Dairy, to address the increasing number of confined
animal operations along the New Mexico-Texas border and to support gas production from dairy manure in an existing unit
operating in Chamberino. The project will create a model for replication throughout the region.

ECMD manages projects that use wood biomass boilers for heating public schools, hospitals and community centers in
areas where small-diameter, thinned trees can provide fuel. Wood biomass projects include the Jemez Mountain Schools
and Fort Bayard Veterans Hospital projects. The Jemez Mountain Schools completed the first full year of operation of its
solid fuel wood biomass hot water boiler that heats a portion of its 161,000 square foot campus in Gallina. The state's first
wood biomass project of its kind serves to demonstrate the feasibility of large-scale biomass plants. Fort Bayard Veterans
Hospital's 150-horsepower wood biomass steam boiler system is scheduled for completion through leveraged federal
funding secured by ECMD. The steam boiler system uses wood chips and was designed to replace an existing natural gas
boiler. It will provide heat for the hospital and laundry, reduce wild fire hazard by removing more than 1,000 tons of wood
thinnings from the Gila National Forest annually, and save on natural gas costs.

Geothermal: Geothermal resources in New Mexico have been used commercially for more than 100 years, originally with
spas and resorts. In the last 25 years, geothermal applications were utilized for a broader range of direct use
developments for water and space heating. During this time, ECMD and NMSU collaborated on a number of geothermal
development projects. NMSU constructed a geothermal research and business incubator facility to host greenhouse and
aquaculture facilities. As a direct result of these efforts, New Mexico leads the nation with more than 50 acres of
geothermally-heated commercial greenhouses and also has one of the largest geothermal aquaculture facilities.

Energy Efficiency in Buildings Program
When thinking about climate change, dependence on foreign oil, and conserving energy, it is important to recognize that
buildings are responsible for 48 percent of all U.S. energy consumption and related greenhouse gas emissions. New
Mexico is leading the fight against global climate change at the state level by addressing energy consumption in our
buildings. This program lays the foundation for the future by providing training, implementing new legislation, and
stimulating interest in sustainable design and construction.

Leadership in Energy and Environmental Design (LEED®) is a nationally recognized standard for measuring building
sustainability in commercial construction. Achieving LEED® certification is the best way to demonstrate that a building
project is truly "green." LEED® certification requires building commissioning and a third-party verification process and
offers compelling proof that a project has achieved environmental goals and will perform as designed. Obtaining this
certification provides the opportunity to take advantage of state and local government incentives.

Training green building professionals boosts our state’s expertise and creates a professional infrastructure that is
knowledgeable about sustainable design and construction. An ECMD clean energy grant provided the funding to produce
a How-To Guide to LEED® Certification for New Mexico Buildings to assist building design project teams pursuing a
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NEW MEXICO

LEED® project for the first time, thereby reducing the learning curve and streamlining the process for state or non-state
building projects.

Clean Fuels and Efficient Transportation Program
This program strives for reduction in the use of fossil fuels and New Mexico’s dependence on imported oil, and helps New
Mexico's citizens save money. The program supports ride-sharing and public transportation projects, development of clean
fuels, and new legislation that promotes the use of biofuels.

Support of efficient state-wide transportation plans is a huge priority for our program. Ride-sharing programs increase
public awareness of alternative transportation such as carpools, vanpools and public transit. Our program supports the
use of biodiesel fuel in school bus fleets and our clean energy project grants program provided the Santa Fe Trails transit
system with money for the procurement of four sedans for its paratransit fleet.

The Las Cruces Rideshare Program established 502 carpools, 12 vanpools, and one park-and-ride route. The state
energy program and the New Mexico Department of Transportation support the Las Cruces Rideshare which has
established a database of carpools in southern New Mexico that covers the White Sands-Alamogordo-El Paso corridor.
The program has saved 28 million vehicle miles traveled, 2.5 million gallons of fuel and $7.8 million in fuel costs since
1990.

The Energy Innovation Fund provided $1 million to the City of Carlsbad, partnered with the Center of Excellence for
Hazardous Materials Management, for a project to inoculate ponds to reproduce microalgae for biodiesel oil production
and test the quality of oil in order to meet motor fuel standards. The project plans to assess the availability of natural
resources and the potential of an algae biodiesel industry in New Mexico.
Page 111



NEW YORK

New York State Energy Research and Development Authority
17 Columbia Circle
Albany, NY 12203
Phone: 518.862.1090
Fax: 518.862.1091
Website: http://www.nyserda.org


STATE ENERGY PROGRAM (SEP)
The New York State SEP (base and competitive) grant funding from the U.S. Department of Energy supports the
deployment of various energy efficiency programs and services by the New York State Energy Research and
Development Authority (NYSERDA). NYSERDA leverages these SEP funds with System Benefits Charge funding and
private sector funds. In addition to reducing energy use, the energy programs improve productivity, stimulate private
investment, retain/create jobs, displace petroleum, reduce electric peak load concerns and improve air quality, while
achieving the following statewide impacts:

Over 160 Businesses and Institutions Receive Detailed Technical Assistance Annually
FlexTech (Flexible Technical Assistance) is a national award winning service, including an ACEEE Exemplary Program
Recognition. FlexTech provides co-funded, onsite energy engineering services through 35 competitively retained energy
service providers. A series of evaluations determined that every $1 of funding from SEP leverages $17 in capital
investments and $5 in annual participant energy savings.

Multifamily Performance Program provides co-funded, on-site energy evaluation, accompanied by financial packaging
and engineering services to multifamily building owners and managers. Building owners can access the Energy Smart
Loan Fund to implement cost-effective energy efficiency improvements with an approved energy evaluation. 15-18
buildings that are not eligible for SBC-funded programs receive technical assistance and access to the loan fund each
year using the SEP funds.

Multifamily Building Operator Training
Efficient buildings using advanced equipment need trained staff to ensure energy efficiency benefits are maintained into
the future. SEP funds are being used to provide training throughout the state to building operators and maintenance staff.

Vocational Training in Energy Careers
New York has established a successful workforce training initiative and training network through SBC-funded programs.
Training addresses building sciences and related specialties, building rating, PV system installation, and is expanding to
new technology areas. SEP funds are being used to take aspects of that training to the next generation of energy
professionals, creating high-school level vocational training opportunities. The curriculum will also be used to support
entry-level training for adults who are not yet prepared to attend full workforce training programs.

$1.7 Million Leveraged in Agricultural Initiatives
Twelve projects, both showcase demonstrations and energy efficiency projects, provide improved energy efficiency,
productivity, and the environmental impact in the agriculture sector.

Over 216 Green Building Projects with Higher Efficiency Equipment
These “green buildings” projects in commercial new construction and building renovation total over 57 million square feet
of floor area and, on average, exceed the current Energy Code by 18% at an incremental cost of only 1-2%. There are
over 500 registered LEED projects in New York, and 420 projects that NYSERDA is working with that are looking for
“green ” technology and features.
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NEW YORK

106 Alternative Fuel Vehicles and 15 New or Expanded Fueling Facilities Deployed. An additional 137 diesel
vehicles retrofitted with anti-idling technologies.
Supports six Clean Cities Coalitions across the State and accelerates the introduction of electric, hybrid-electric, propane,
natural gas, ethanol, and biodiesel-fueled vehicles in public and private fleets. Services include vehicle deployment, anti-
idling technologies, refueling facility/infrastructure development, information sharing, and stakeholder coordination.
Approximately 3.4 million gallons of petroleum will be displaced over the lifetime of these vehicles as a result of these
projects. An additional 2.3 million gallons of petroleum will be displaced annually through biofuels projects with petroleum
distributors.

Ethanol update
A network of five E85 fueling facilities along the main corridor of New York from New York City to Buffalo for use by State
fleet vehicles have been completed and are in use. An initiative to establish retail fueling facilities and distribution capacity
for biofuels has been launched using a combination of SEP and State funds. Four SEP-funded E85 retail stations are in
the planning stages with construction to begin in the spring, with another 16 E85 stations expected to be completed by the
end of 2008.

$8 Million Leveraged in Financing of Industrial Improvements
Fifteen industrial sites around the state were designated Showcase Demonstrations, promoting underutilized technologies
which can improve productivity, energy efficiency and environmental performance.

Long Island Participates in HEAP Oil Buying Initiative and Clean & Tune Program
SEP funds are supporting expansion of the HEAP Oil Buying Initiative to Nassau and Suffolk counties as part of a three-
year statewide roll-out of this effort purchase home heating oil at a discount for HEAP customers. The effort includes
heating system clean & tune services for participating low income customers. Statewide this effort is expanding the
purchase power of the HEAP oil funds by an estimated $5million per year.

New York Energy $martSM Communities
Nine regional partnerships target local needs by bringing together organizations that contribute to
highly visible projects that demonstrate how energy efficiency and energy resource approaches
create economic, social and environmental benefits. SEP funds are used to support educational seminars organized and
publicized by these partnerships to the public throughout the state.

Two Executive Orders Require over 200 State Agencies and Authorities to Have "Green and Clean" Buildings and
Vehicles and Use Bio-fuels
On his first day in office, Governor Spitzer issued Executive Order No. 5, "Review, Continuation and Expiration of Prior
Executive Orders." In EO5, Governor Spitzer continued both Executive Order No. 111 and Executive Order No. 142.
These two executive orders impact well over 200 million square feet of building space in over 10,000 facilities and over
13,000 vehicles. In State Fiscal Year 2005/06, Affected State Entities reported an energy use index (BTUs/SF) reduction
of 12.3% when averaged by Affected State Entity. Affected State Entities also reported that almost 30% of the total state
owned fleet was alternatively fueled. Additionally, almost 4% of the total electric consumption was from renewable
resources. Calendar year 2007 was also the first year for the requirements of EO142, which requires the use of bio-fuels
in fuel oil use for facility heating, and in vehicles.

New York State Energy Code Upgraded
SEP Special Projects funding supports Energy Code Training that has been provided by the New York Department of
State to over 3,000 code officials, and builders in the past 4 years. A round of training on the 2007 Energy Code is
planned for March – May 2008, with additional focus on New York City lighting designers. The 2007 Energy Conservation
Construction Code of New York has become effective January 1, 2008. This updated code is based on the Residential
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NEW YORK

Provisions of the IECC 2004 Supplement, and Commercial Provisions of IECC 2003 (ASHRAE 90.1-2001). There may be
an opportunity to upgrade the Commercial Provisions to ASHRAE 90.1-2004 this summer.

New York State Appliance Efficiency Standards
NYSERDA is working with the NY Department of State to enact efficiency standards for state-regulated incandescent
reflector lamps, metal halide lamp fixtures, external power supplies and a variety of consumer electronic products. These
standards will apply to all products sold in New York State. By 2015, the standards are estimated to deliver the following
annual benefits: 192MW of demand reduction, 1,100 Gigawatt-hours of energy savings, $143 million in energy cost
savings to New York consumers, and associated emissions reductions equivalent to removing 119,700 vehicles from the
road. The Energy Independence and Security Act, passed in December 2007, included appliance and equipment
standards for incandescent reflector lamps, external power supplies, and metal halide lamp fixtures. While the national
standards will likely preempt state enforcement of its standards, since the normal standards are at the levels being
pursued by the state regulations, they lock in the projected savings and environmental impacts.

HPT8 Lighting Systems Promoted Throughout Northeast
With this grant, NYSERDA and Northeast Energy Efficiency Partnerships (NEEP) have worked with sponsor utilities and
energy efficiency program administrators in New England, Long Island, and New Jersey to encourage lighting
manufacturers and distributors to change their stocking practices for High Performance T8 (HPT8) Lighting Systems.
Prior to the grant activities, most lighting distributors in the region stocked standard T8 systems as the commodity fixture.
HPT8 systems were generally considered a special order item. This lack of availability adversely affected incentive
programs in the region. As a result of the grant efforts, most regional and local distributors are now offering HPT8 as their
commodity fixture. Evidence of the impact this activity has had is evident in NYSERDA’s Peak Load Prescriptive Lighting
Program. During 2006, 1450 HPT8 systems were brought into the program. By the 3rd quarter of 2007, at the height of
the outreach activities, incentives were provided for 11,000 systems. Final surveys are being administered and a final
report will be issued by the end of 2nd quarter 2008.
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NORTH CAROLINA

North Carolina State Energy Office
1340 Mail Service Center
Raleigh, NC 27699-1340
Phone: 919.733.2230
Fax: 919.733.2953
Website: http://www.energync.net


The State energy office is dedicated to ensuring a sustainable energy future for the citizens of North Carolina. This is
accomplished by “leading by example” with programs, services and technical expertise that are focused on advancing
energy efficiency in the public sector. The Office also works to increase the use of renewable energy, alternative fuels and
energy efficiency throughout the state, serving as the principal source of information for these energy areas. When energy
emergencies arise, the Office works closely with other state agencies to assist with response efforts.

This was a year of change for North Carolina and the State energy office. The office, a division of the North Carolina
Department of Administration, was moved from nearly total federal funding to more than two-thirds support by state
appropriations. North Carolina also became the first state in the Southeast to adopt a Renewables and Efficiency Portfolio
Standard. North Carolina’s REPS target is 12.5 percent of all generation from renewables and efficiency programs—up to
five percent of the target can be met with reductions in use—by 2021.

Utility Savings Initiative for State Facilities
The State energy office’s largest program, the Utility Savings Initiative for State Facilities (or USI), was created in 2002.
The goal of USI is a 20 percent reduction in utility usage by State agencies, universities and community colleges by 2008.
The program has saved North Carolina taxpayers more than $67 million in avoided utility costs to date, and is on track to
achieve its goal. Recent legislation has expanded on this successful program, including giving it a firm foundation by
funding its staff with state appropriations.

Fundamental to the program is the preparation of a strategic energy plan by each agency and university. The plan is
submitted to the SEO on an annual basis and includes a signed mandate committing the agency to the energy reduction
goal. Facility audits, energy management training sessions and technical workshops are offered by SEO staff throughout
the year. Site visits are conducted two to four times per year to determine progress and to troubleshoot problems. As part
of the USI program, the SEO assists state agencies with major capital renovations through the use of private, performance
-based energy savings agreements. As a result of these efforts approximately $40 million in energy-saving renovations are
complete, under construction or in the engineering audit phase, including work at the North Carolina Museum of Art which
has resulted in a 50% reduction in utility expenses during the first year.

Rules were also created in 2007 requiring all new state buildings to exceed the American Society of Heating, Refrigeration
and Air-conditioning Engineers (ASHRAE) 90.1 2004 performance standard by 30 percent and that all building renovation
projects exceed this benchmark by 20 percent. The law also creates a mandate for USI’s timeline for reductions in energy
consumption. Utilizing the same baseline year, the target is moved to the end of fiscal year 2009-2010, at which time the
requirement increases to 30 percent reductions by the end of fiscal year 2014-2015. The North Carolina General
Assembly also created an Energy Reserve to fund the implementation of prescriptive efficiency measures such as low-
flow faucet aerators and compact fluorescent lighting.

During 2007 the USI program received the Regional Innovations Award from the Council of State Governments, and the
Best Practices in the Public or Nonprofit Sector award from Sustainable North Carolina.


State Energy Plan
Page 116



NORTH CAROLINA

The SEO, under the direction of the N.C. Energy Policy Council, is charged with developing recommendations for
achieving maximum effective management and use of present and future energy sources, which are presented to the
Governor, General Assembly, other State agencies, and key decision makers for consideration and implementation. To
achieve this, the office develops, every two years, a long-range State Energy Plan. Another revision began in 2007, and
currently contains more than 90 recommendations for advancing sustainable energy practices in North Carolina.

State Energy Emergency Plan
The SEO, under the direction of the N.C. Energy Policy Council, is directed to develop contingency and emergency plans
to deal with possible shortages of energy, including strategies for fuel allocation, conservation measures,
recommendations to avert shortages, and procedures for review of complaints and special exemptions. The first major
revision to the plan since 2003 began this year and is nearly complete.

Renewable Energy Initiatives
The SEO is the primary underwriter of the Renewable Energy Management Diploma Series offered by NC State
University’s Office of Professional Development. This widely recognized adult continuing education program provides
building professionals and contractors with “hands-on” experience installing renewable energy technologies.

One of the largest solar arrays in the Southeast constructed as a direct result of SEO support and funding. A Brownfields-
to-Brighfields demonstration project, this 75 kW photovoltaic array installed by Carolina Solar LLC started producing power
for the NC GreenPower program in December of 2007.

The North Carolina Biomass Council also completed and released the North Carolina Biomass Roadmap, a set of
recommendations for developing North Carolina’s greatest renewable resource, including the goal of displacing “7% of its
predicted power consumption by 2017 using its available biomass resources.”

Alternative Fuel Initiatives
In 2007 the SEO began the sale of credits acquired by exceeding the state fleet’s alternative fuel vehicle and fuel
requirements under the Energy Policy Act (EPAct). The funds from these transactions will be used to finance additional
infrastructure and vehicle purchases, allowing the state to further increase its use of these technologies.

The office is also a partner in the Clean Fuel Advanced Technology (CFAT) grant program, which targets NC counties
which are in non-compliance with EPA clean air standards and provides assistance for the implementation of cleaner
transportation technology. In 2007 this program awarded a total of $261,828 in assistance to projects in North Carolina

The office is also responsible for overseeing petroleum displacement planning by all state funded agencies; the state goal
for petroleum displacement is a 20% reduction of the baseline year (fiscal year) 2005 by the end of calendar year 2009.
Program metrics at year end indicate that 7.5% displacement has occurred.

Residential Energy Efficiency Initiatives
During 2007, the office’s Upgrade and Save program, an initiative created to increase efficiency within the manufactured
home market, expanded from 17 to 50 NC Counties. A pilot expansion in the scope of the program is also underway in
several western NC counties, which includes assistance to homeowners to upgrade purchases of new manufactured
home with an ENERGY STAR package.

The office also joined with the North Carolina Cooperative Extension Service—a partnership between NC State University,
USDA Rural Development and county governments—to provide programming and assistance to homeowners on
controlling their energy expenses through county Family and Consumer Science agents. Called the E-Conservation
program, this initiative has been rolled-out in more than 80 NC Counties, providing a valuable outreach network for the
office.
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NORTH CAROLINA


Industrial Energy Efficiency Initiatives
The state’s Energy Management Program has helped North Carolina industry save more than $170 million through
suggested energy saving improvements. Low-cost facility audits are offered upon request to identify inefficiencies, and
approximately 40 no- and low-cost workshops for facility personnel were held to provide training in different topic areas,
including compressed air, HVAC, lighting, cooling towers and motors to achieve these savings.

The office also offers a steam trap survey voucher program which provides incentives to NC businesses to asses their
steam system for leaks.

Nonprofit Initiatives
The office, in partnership with Piedmont Natural gas, also funds the Nonprofit Weatherization Program. This innovative
initiative assists some of North Carolina’s hardest working and most cash-strapped agencies by providing free
weatherization assistance and training. The morning-long workshops that are conducted to train the agency volunteers
which do the lion’s share of the work have the added benefit of educating homeowners on not only the benefits but the
correct procedures for making safe and effective efficiency improvements utilizing supplies from a local hardware store.

Education and Awareness Initiatives
For Energy Awareness Month, the SEO engaged with several public and private partners to participate in US EPA’s
“Change a Light, Change the World” challenge. Utility partners provided one free CFL for every pledge participant; during
the campaign more than 15,000 CFLs were distributed.

By far the most popular SEO education and awareness program is the annual North Carolina Sustainable Energy
Conference, one of the largest and most comprehensive such events in the Southeast. The 2007 event, the fourth
installment, attracted more than 650 attendees and exhibitors. Senator Tom Daschle set the tone for the event as the
keynote speaker, and attendees were able to attend workshops ranging from “Quantifying the Health Effects of Energy
Efficiency” to “Biofueling the Future”.

Energy Improvement Loan Program
The Energy Improvement Loan Program, administered by the SEO, provides low interest loans for eligible energy
conservation and renewable energy measures for North Carolina industry, commercial businesses, local government
units, community colleges, primary and secondary public school systems and nonprofit organizations. Loans of up to
$500,000 with a 1 to 3 percent interest rate are available. The program has provided $2.5 MM in funding to projects in
North Carolina to date.
Page 119



NORTH DAKOTA

North Dakota Office of Renewable Energy & Energy Efficiency
1600 East Century Avenue, Suite 2
P.O. Box 2057
Bismarck, ND 58502-2057
Phone: 701.328.5300
Fax: 701.328.2308
Website: http://www.ndcommerce.com/


Over the years the North Dakota Energy Office has engaged in several partnerships to demonstrate the economic
advantages of energy efficiency, and to introduce the potential for renewable energy technologies. During this time the
energy office has teamed with local and state government, industry, business, schools, economic development
corporations, educators, individuals and others interested in advancing energy conservation practices and deploying
renewable energy technologies.

One of the distinguished associations NDSEO has shared during this time is with the Energy & Environment Research
Center, located on the University of North Dakota campus, in Grand Forks. In addition to providing resources to
demonstrate several renewable energy applications, EERC recently demonstrated the feasibility of a biomass gasification
power generation system in a small business, and has commercialized the technology, turning low-value waste into
electricity.

The biomass gasification power generation system, developed by the EERC Center for Renewable Energy through
several years of projects with the U.S. Department of Energy, NDSEO, and commercial industry, will convert the sawdust
and wood waste from a building product plant into a combustible gas to produce heat and electricity. The biomass
gasification power generation system is designed to match the typical power requirements of various manufacturing
industries generating between 10 kW to 1 MW of power. The power system provides unique energy solutions to industrial
clients by producing heat and electrical power from a variety of fuels, including waste materials and other organic
feedstocks.

The NDSEO continues to work with the EERC with an anemometer loan program, Small Wind Energy Technology Center,
a wind-to-hydrogen demonstration project, and looks forward to continuing an energy efficiency and renewable energy
relationship with this world class organization.

For more information about the EERC go to their website at www.undeerc.org.
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NORTHERN MARIANAS ISLANDS

Northern Mariana Islands Energy Division
P.O. Box 500340
Saipan, NMI 96950
Phone: 670.664.4480
Fax: 670.664.4483
Website: http://net.saipan.com/cftemplates/executive/index.cfm?pageID=20


The Commonwealth of the Northern Mariana Islands (CNMI) Energy Division goals and objectives are to help decrease its
dependence on imported petroleum products by promoting the use of alternate or renewable energy resources and
disseminating the latest technologies and information on ways to help reduce energy. With the State Energy Program
(SEP), projects and activities are achieved utilizing the grant funds.

Outreach Program—Promoting energy conservation and efficiency through education and outreach to the entire
community. Visit and judge at school energy fairs and assists students with research projects regarding energy at our
Energy Information Center.

Governor’s Office Lighting Retrofit—Retrofitted the lighting at the Governor’s Office by replacing all magnetic ballasts to
electronic and replacing all T12’s fluorescent bulbs to T8’s.

Retrofit at Commonwealth Health Center—Retrofitted the top portion of the hospital by replacing all magnetic ballasts to
electronic and replacing all T12’s fluorescent bulbs to T8’s. In addition, installed lighting sensors at all restroom facility
and replaced all EXIT signs from using 2-15 watt cfl’s to a 1 watt Light Emitting Diode (LED).

Government Energy Program—Providing preliminary energy assessments, energy awareness training/workshops and
on-site trainings. The program provides educational materials on how to use energy more efficiently through product
procurement, innovative technologies and sustainable design practices.

Promoting Use of Alternative/Renewable Energy—With the high cost of utility at .258 per KWh, we are promoting the
use of alternate and/or renewable energy resources but some renewable energy resources simply aren't viable in the
CNMI's climate (e.g., wind) or topography (e.g., hydro-power).

Energy Awareness Month—Designate the month of October as Energy Awareness Month in coordination with the U.S.
Department of Energy with the Governor signing the proclamation. To kick off our awareness month, our office holds an
open house as well as a one-day energy fair partnering with the Residential Energy Assistance Challenge (REACh)
program inviting vendors to display energy efficient products and also partner with our utility agency Commonwealth
Utilities Corporation (CUC) and make presentations at schools (public & private) on the role CUC portrays and the
importance of energy conservation.

Change-a-Light, Change the World Campaign—Third year the CNMI participated nationally with the Governor
proclaiming October 3, 2007 as “ENERGY STAR: Change a Light, Change the World Day” and our office distributed two
(2) free compact fluorescent light bulbs (cfl’s) to any paying utility household to help reduce the greenhouse gas emission.

ENERGY STAR Awareness—We have partnered with our local hardware stores in promoting ENERGY STAR® compact
fluorescent light bulbs (cfl) and roof insulation elastromeric primer and coating as well as other appliances. We do in-store
promotions on cfl’s (buy one, get one free) and provide reading materials on the importance on purchasing ENERGY
STAR products and the savings.
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OHIO

Ohio Office of Energy Efficiency
77 South High Street, 26th Floor
P.O. Box 1001
Columbus, OH 43216-1001
Phone: 614.466.6797
Fax: 614.466.1864
Website: http://www.odod.state.oh.us/cdd/oee/


The Ohio Energy Office works to grow the economy of the State by connecting companies and communities to financial
and technical resources to deploy advanced energy technologies and energy efficiency. The Energy Office oversees the
State Energy Plan (SEP) and conducts SEP Special Projects to promote awareness, develop capacity, deploy projects,
and to provide technical assistance, training, and outreach in advanced energy technologies, alternative fuels
infrastructure, energy efficient buildings, and industrial process efficiency. The Ohio Energy Office administers a public
benefits fund for energy efficiency and renewable energy, and administers funds to promote fuel cell commercialization.
The Ohio Energy Office also directs the State’s weatherization program (HWAP) for low-income households and manages
an electric baseload reduction program.




The $1.3 million U.S. Department of Energy State Energy Plan and Special Projects funding leveraged $25 million dollars to yield energy efficiency and
                                                      renewable energy benefits for Ohioans.
                                                                                                                 Page 124



OHIO

Buildings, Codes and Standards
The Ohio Energy Office reaches its constituents largely through experienced, knowledgeable grantees. Three green
building organizations in Cleveland, Columbus and Cincinnati provided six seminars to architects, engineers, designers,
contractors, building owners, government officials and others; six speaker events pertaining to greening healthcare,
sustainable building, colleges and universities and design professionals; six “LEED @ Lunch” seminars; two instances of
technical assistance and one annual Green Product Exposition showcasing a diverse range of Green products and
services. Six Building Operator Certification courses were held certifying 147 building operators, and a statewide
conference, “It’s Easy Being Green”, hosted by the Ohio Public Facilities Maintenance Association attracted 125 attendees
and 30 exhibitors. A second statewide conference in May attracted 119 attendees. The Ohio Energy Office participated in
the implementation of Governor Ted Strickland’s second Executive Order, which called for energy reductions in all
stateowned facilities of 5 percent by 2008 and 15 percent by 2011. Also of note was Governor Ted Strickland’s leadership
on energy policy that could change Ohio’s entire energy profile: The Jobs, Energy and Progress legislation includes an
Advanced Energy Portfolio Standard requiring 25 percent of Ohio’s energy to come from advanced energy sources by the
year 2025, including half from renewables.

Advanced Energy Technologies
The Ohio Energy Office administers the Advanced Energy Fund, known previously as the Energy Loan Fund. This
systems benefit charge was authorized by the legislature and is collected as a rider on bills of customers of the investor
owned electric utilities (AEP-Ohio, Dayton Power & Light, Duke Energy, or FirstEnergy). These funds provide incentives to
encourage qualifying energy efficiency and renewable energy projects from a variety of customer classes located in Ohio.
In PY 2007, the Ohio Energy Office leveraged funds from Advanced Energy Fund grants to deploy advanced energy
demonstration projects adding total nameplate capacity of 134.5 kW from solar
photovoltaics and wind and 930 kW from process heat.

Industrial Programs
Improving the competitiveness of Ohio manufacturers is a priority. To that end, the Industrial Energy Efficiency Program is
designed to provide Ohio’s manufacturers with tools to help drive sustainable energy use. The Industrial Energy Efficiency
Program is divided into four phases:
• Phase I- energy management diagnostic utilizing the EnVinta One-2-Five or Energy
• Achiever software
• Phase II-energy management plan development/technical opportunities assessment
• Phase III-project implementation
• Phase IV- program follow-up and review

In PY 2007, The Ohio Energy Office invested over $710,000 in 26 projects through the Industrial Energy Efficiency
Program.

Public Information
The Energy Office staff fielded over 1,300 inquiries from the public via telephone or e-mail and delivered over 100
presentations. An Ohio Energy Office grantee, Ohio Energy Project (www.ohioenergy.org), has reached over 100,000
students through Ohio’s educators by working with those educators to implement over 100 educational programs. Also in
2007, the Office of Energy Efficiency was re-named the Ohio Energy Office and engaged in comprehensive and ongoing
re-branding of the Ohio Department of Development under the leadership of Governor Ted Strickland and Lieutenant
Governor Lee Fisher, who also serves as Director of Development. The Ohio Energy Office maintained its use of the
Energy Hog campaign for public awareness and participated in three public events with the mascot. The Energy Office
also renewed the on-line Ohio Small Business Energy Saver agreement with seven utilities and served 7,897 small
businesses that accessed the site this year.
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OHIO

Transportation
PY 2007 rolled out the Alternative Fuel Transportation Grant Program in the form of grants awarded to 30 alternative fuel
retailers and two biodiesel blending facilities. The Alternative Fuel Transportation Grant Program was established for the
purpose of improving air quality through grants to businesses, nonprofit organizations, school systems or local
governments for the purchase and installation of alternative fuel refueling, blending or distribution facilities and terminals.
The grants totaled $926,288. Though SEP funds were not used for this activity, the benefits of reduced petroleum use
were consistent with the former DOE Clean Cities’ programs.
                                                                                                                  Page 127



OKLAHOMA

Oklahoma Office of Community Development
P.O. Box 26980
900 N. Stiles
Oklahoma City, OK 73126-0986
Phone: 405.815.6552
Fax: 405.605.2870
Website: http://www.okcommerce.gov/index.php?option=content&task=view&id=338&Itemid=424


Building an Energy Web for Oklahoma
The Oklahoma State Energy Office strives to increase energy efficiency and the use of renewable resources across the
state by providing information, training, and technical assistance to energy users and developers. This mission is a tall
task for a small office, requiring innovative techniques and strong partnerships with other organizations within the state.
Oklahoma’s State Energy Program currently funds three long time partners of the Oklahoma Department of Commerce, as
well as the Community Energy Efficient Lighting program. A common thread between the Oklahoma State Energy Office
and our partners is our informative energy focused websites. This use of the internet allows our small programs to
increase their reach many fold.

Oklahoma Wind Power Initiative
The Oklahoma Wind Power Initiative (OWPI) is a joint effort between Oklahoma State University and the University of
Oklahoma. OWPI created the first high resolution wind resource maps for the state with grants from the State energy
office, and subsequently made the maps available on their website. These interactive maps include layers for transmission
lines and sensitive wildlife habitat, which help developers choose the best locations for wind development. The website
also includes in-depth resources for community wind projects and small-wind information.

Tulsa Clean Cities
Tulsa Clean Cities used Oklahoma State Energy Office grants to create the Green Traveler Program. The Green Traveler
website is a clearing house of information on the reduction of transportation fuel use. The website provides commuters
with new carpool opportunities, the latest information on mass transit in the
Tulsa metro area, links to local and regional transportation planners, and
many other innovative ways to reduce transportation costs and keep Tulsa’s
air clean.
www.tulsacleancities.com
www.green-traveler.org

Central Oklahoma Clean Cities
The Central Oklahoma Clean Cities Coalition website is the central clearing
house for information about alternative fuel facts, including mandates and incentives on both the federal and state level.
www.okcleancities.com

OKCOMMERCE.GOV/ENERGY
The Oklahoma Department of Commerce website has a new and expanding energy section. Wind was the first of several
expanded in-depth sections to receive a total makeover. With the rapid expansion of utility scale wind development in the
state, many Oklahomans are turning to the State energy office for answers. Having an in-depth wind section with topics
relevant to several target audiences across the state provides a good starting point for public outreach.

Biofuels was the second area to receive and expanded section. With news stories about biofuels flooding the airwaves
and newspapers, Oklahomans are increasingly interested in producing, selling and using biofuels. The Oklahoma
Page 128



OKLAHOMA

Department of Commerce web portal provides a clearinghouse for this and other information. New in-depth sections are in
the works for solar, geothermal and energy efficiency topics.

                  Best of Building Science
                  The Best of Building Science is yet another website created with grants through the Oklahoma State
                  Energy Office. The website features lessons learned from the US Department of Energy Building
                  America program, delivered by some of the nation's foremost building science professionals. They
                  incorporate content from such sources as the Affordable Comfort conferences, "Home Energy"
                  Magazine articles, and the DOE Building America partner technology reports. This is all presented in a
                  videobased "in the field" format available 24/7 and specifically designed for builders, sub-contractors
                  and design professionals in the residential construction business.
                  www.bestofbuildingscience.com
                                                                                                                 Page 129



OREGON

Oregon Department of Energy
625 Marion Street, NE
Salem, OR 97301-3737
Phone: 503.378.5489
Fax: 503.373.7806
Website: http://oregon.gov/ENERGY/


                                                Business Energy Tax Credit—The program provides state tax credits
                                                for Oregon businesses that invest in conservation, renewable resources,
                                                recycling, and burning less-polluting transportation fuels. The 2001
                                                Legislature allowed Oregon non-profit organizations, tribes, schools and
                                                other public entities to become partners with private businesses and
                                                participate in the program. Since inception, the Business Energy Tax
                                                Credit program has recorded over 12,100 energy-saving projects (1980-
                                                2006). In 2006, we received almost 2,100 requests with project costs of
                                                $360.6 million.

                                                Residential Energy Tax Credit—This is a state tax credit for Oregon
                                                residents who invest in energy-efficient appliances, heat pumps, air
                                                conditioners, ducts, furnaces, water heaters, hybrid and alternative-fuel
                                                vehicles, solar- and geothermal-heating systems, and solar and wind
                                                systems. The Residential Energy Tax Credit program has provided tax
                                                credits for almost 277,900 residential energy-saving purchases (1980-
                                                2006). In 2006, we had almost 43,000 requests for projects costing
                                                $108.6 million.

                                                Building Codes—ODOE develops the energy-efficiency component of
                                                state building codes. Almost 511,000 homes were built to energy
                                                standards (1980-2006). Currently, approval is imminent for a 15 percent
                                                increase in the residential code.

                                                Statewide Energy Loan Program—It provides low-interest, fixed-rate,
                                                long-term loans for projects that save energy, produce energy from
                                                renewable resources, or use alternative fuels. This program issued loans
                                                for more than 700 energy projects costing over $345 million (1980-2006).
                                                In 2006, we had 29 requests for projects costing over $10.5 million.

Schools—ODOE’s current Schools program included project costs of $24.2 million for Public Purpose Charges, $388.6
million for High Performance Schools, $931,000 for Williams Oil Settlement, and $178.7 million for Rebuild America. The
Schools program benefited more than 1,000 schools (1997-2006).

Manufactured Homes Program—ODOE implements an energy-efficient certificate program for manufactured homes
called the ENERGY STAR Program. Almost 29,100 new energy-efficient manufactured homes were sited in Oregon (1995
-2006).

State Home Oil Weatherization—This program provides an energy-audit checklist and rebates for Oregon residents with
homes primarily heated with oil, propane, kerosene, butane or wood. The program implemented over 61,700 energy-
saving measures in Oregon homes (1980-2006).
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OREGON

State Energy Efficiency Design—ODOE reviews design plans for new and renovated state buildings to identify energy-
efficiency opportunities. ODOE ensures that new state buildings are 20 percent more efficient than state code and retrofits
are 10 percent more efficient. The agency reviewed 102 state buildings, resulting in $17.6 million in energy improvements
(2001-2006).

Self-Direction—Large electricity consumers may spend the conservation and renewable-resource portion of their Public
Purpose Charges at their own site. The total number of energy-conservation projects completed was 123 projects costing
$23.6 million and saving 585.3 billion Btu (2002-2006).

State Energy Program (SEP) Formula Grant
SEP formula grant funds used for Residential Energy Tax Credits in Fiscal Year 2006-2007 leveraged $133.0 million in
private expenditures for appliances, heating systems, hybrid and alternative-fuel vehicles, and renewable resources. In
2006, the Oregon Department of Energy reviewed and approved tax credits for 34,000 energy-efficient appliances.

State Energy Project (SEP) Special Projects
Oregon had one State Energy Project (SEP) Special Project grant
funded during Fiscal Year 2006-2007.

Accelerating Industrial Energy Efficiency—This project focused on
the high-energy use industrial plants that were not previously
contacted. It identified these firms, built relationships with key
personnel and on-site plant staff, delivered Industries of the Future
technical materials and services, identified plant efficiencies, and
provided technical and financial assistance to one or more energy
efficiency projects.

Leveraging Funds
The ODOE leverages the federal funds we receive for our energy
efficiency programs to make them as effective as possible. In Fiscal
Year 2006-2007, Oregon’s SEP federal grant funds leveraged
expenditures of funds from state, Petroleum Violation Escrow (PVE),
private, and other sources totaling an estimated $146.0 million. For
each federal dollar spent, there was $243 in leveraged expenditures
that achieved energy savings, reduced Oregon’s use of oil, and reduced CO2 emissions in the state.

Carbon Dioxide (CO2) Emissions Reduced
Over 91 percent of the funds leveraged by SEP dollars are private dollars invested in energy efficient and renewable
resource systems under Oregon’s Residential Energy Tax Credit (RETC) and Business Energy Tax Credit (BETC)
Programs. In 2006, RETC and BETC reduced CO2 emissions by an estimated 90,000 and 3,370,000 tons, respectively.

   Contribution Source             SEP Formula Grant              SEP Special Projects                   Total
SEP Federal                                        $511,054                        $90,000                       $601,054
State                                           $12,337,055                       $131,333                    $12,468,388
PVE                                                 $85,186                              $0                        $85,186
Private                                       $132,992,462                        $375,236                   $133,367,698
Other                                                     $0                       $30,000                         $30,000
                                                                                                                                       Page 131



OREGON


        Expenditure Description                              Total Expenditures                                 Leveraging Ratio
Total-Non Federal                                                                $145,951,272                                                $243
Total Federal                                                                         $601,054                                                  $1

1 The   energy-project investment total is not adjusted for overlap between ODOE programs: Business Energy Tax Credit, State Energy Loan Program,
and Industrial Self-Direction.
2 The energy saved/generated total is reduced to prevent overlap in ODOE programs, which decreases the Business Energy Tax Credit amount by 1.8

trillion Btu. Before the overlap adjustment, the Business Energy Tax Credit program energy savings is 32.7 trillion Btu.
3 Other includes former and current ODOE programs: Schools and Hospitals; Industrial Self-Direction; Manufactured Homes; State Home Oil

Weatherization; Residential Energy Tax Credit; and State Buildings. Some programs do not track energy saved/generated.
Page 133



PENNSYLVANIA

Pennsylvania Bureau of Energy, Innovations, & Technology Deployment
PO Box 8772
Harrisburg, PA 17105-8772
Phone: 717.783-0540
Fax: 717.783.2703
Website: http://www.depweb.state.pa.us/


The goal of the Office of Energy and Technology Deployment is to effectively work with citizen's groups, businesses, trade
organizations, local governments and communities to help them reduce pollution and save energy. Part of that effort
includes encouraging the deployment and use of innovative environmental and advanced energy technologies, including
renewable energy. The majority of our energy efficiency and renewable energy initiatives are funded or catalyzed by the
State Energy Program.

Alternative Energy Portfolio Standard
Pennsylvania’s Alternative Energy Portfolio Standard, one of the most progressive in the nation, ensures that 18 percent
of all retail energy generated by 2020 comes from clean, efficient and advanced resources. The law promises to
substantially build on the state’s leadership in wind production east of the Mississippi, with 179 MW of wind energy
capacity currently installed. Since the act’s passage in 2004, the portfolio standard has attracted $1 billion in new, private
investment to Pennsylvania, which has helped to create nearly 3,000 jobs.

Pennsylvania Energy Harvest Grant Program
Energy Harvest grants fund projects that use energy sources such as solar, wind, biomass, geothermal, biodigestion and
landfill methane gas, as well as provide financing for energy efficiency and “green” building projects. SEP funding is
essential to the Energy Harvest program. Since the program was launched in May 2003, approximately $5.1 million of
SEP expenditures have resulted in the outlay of $21 million in state funds and leveraged another $66 million in private
funds. Projects awarded in 2007 will generate 18.5 million kilowatt hours of clean electricity; replace 3.1 billion BTUs of
natural gas and 225,000 gallons of petroleum-based fuels; reduce carbon dioxide emissions by 29 million pounds; and
remove 204,000 pounds of sulfur dioxide and 56,000 pounds of nitrogen oxide.

PEDA
The Governor announced an investment of $11 million in 24 innovative, alternative and renewable energy projects in 2007
through the Pennsylvania Energy Development Authority. The projects will create 730 permanent jobs and 1,200
temporary positions, as well as leverage more than $122 million in private funds. Since 2004, it has directed $32.2 million
in grants and loans for 81 clean energy projects that are leveraging another $362 million in private investment.

Pennsylvania Wind Energy Program
With 179 megawatts of wind energy capacity, Pennsylvania is one of the leading states in wind generation east of the
Mississippi. The level of wind energy investment in Pennsylvania is a result of many factors, including SEP involvement.
SEP funded the development of a business plan for Community Energy, Inc. to market wind energy from Pennsylvania
wind farms, and a wind energy marketing program for the Mid-Atlantic region, which, along with Pennsylvania’s Green
Power Purchase (see Governor’s Green Government Council) expanded the voluntary market and has paved the way for
the approximately 4000 Megawatts of wind energy capacity expected by 2020 through full implemetation of the Alternative
Energy Portfolio Standard. More recently, Pennsylvania has established collaborative partnerships between the wind
industry, state and federal agencies, local governments and non-profits to create a model local government ordinance, a
clarified tax policy, and best practices to insure wind development proceeds while ensuring thorough protection of our wild
resources. Because of that leadership, Pennsylvania is now the United States home to both Iberdrola and Gamesa, two
of the largest wind and renewable energy companies in the world.
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PENNSYLVANIA

Alternative Fuels Program
The Alternative Fuels Program promotes the use of alternative transportation fuels in Pennsylvania through demonstrating
their positive environmental impact, technical feasibility, and energy efficiency. Originally designed to assist state
agencies under legislative mandate to operate a percentage of their fleets on alternative fuels, the program is currently
more inclusive. Program initiatives include the Pennsylvania Alternative Fuels Incentive Grant (AFIG). From 2003-2007,
AFIG awarded164 grants totaling more than $17 million in the categories of biodiesel production, biodiesel purchase, E85
and biodiesel infrastructure, construction, landfill methane liquefaction, hydrogen fleet demonstration, and idle-reduction.
7,981 rebates for hybrid electric vehicles have been awarded totaling nearly $4 million.

Governor’s Green Government Council
The Governor’s Green Government Council was established by executive order in 1998 to help state government embed
environmental sustainability throughout its policymaking and operational processes. The council works in partnership with
agencies throughout the Commonwealth and by extension with their constituencies, as a catalyst to stimulate the
development and continuous improvement of environmentally sustainable practices in planning, policymaking and
regulatory operations. The GGGC has advocated green, energy efficient buildings and has implemented several
Commonwealth green buildings. Pennsylvania is second only to California in the number of buildings certified by the U.S.
Green Building Council under the internationally recognized Leadership in Energy and Environmental Design program.
The GGGC was influential in Pennsylvania’s recent green energy purchase of 277,399 megawatt hours a year, or 28
percent of state government’s electricity, from renewable sources such as wind and hydroelectric energy. This purchase
makes Pennsylvania the largest state purchaser of green electricity and ranks Pennsylvania number 13, and the only state
in the country to be included, on the U.S. Environmental Protection Agency’s Top 25 Green Power Partners list.
(www.gggc.state.pa.us).



                               State Energy Program(SEP) - U.S. Department of Energy
                                Funds Awarded and State Cost Share – Pennsylvania
  State FY            Federal SEP Grant          Cost Share            Total State Match                    Cost Share
  FY 2000                $1,357,000                  44%                  $1,698,668                           56%
  FY 2001                $1,508,000                  46%                  $1,789,222                           54%
  FY 2002                $1,722,000                  46%                  $1,997,645                           54%
  FY 2003                $1,717,000                  39%                  $2,649,000                           61%
  FY 2004                $1,753,000                  34%                  $3,429,751                           66%
  FY 2005                $1,706,000                  29%                  $4,241,345                           71%
  FY 2006                $1,394,000                  23%                  $4,657,999                           77%
  FY 2007                $1,746,000                  25%                  $5,129,457                           75%
      Totals             $12,903,000                 34%                 $25,593,087                           66%
Page 135



PUERTO RICO

Puerto Rico Energy Affairs Administration
P.O. Box 366147
Puerta de Tierra Station
San Juan, PR 00936-6600
Phone: 787.999.2200 ext.2888
Fax: 787.753.2220
Website: http://www.aae.gobierno.pr/


Energy Community Education Services: The Puerto Rico Energy Affairs Administration (PREAA) promotes energy
conservation and efficiency through education services such as lectures and information centers. These services include
the promotion of mandatory activities like ridesharing and right turn on red. For the fiscal year from October 2006 to
September 2007, 461 lectures were offered at municipalities, government agencies,
schools, industries, communities and other organizations. 132 information centers were
offered in shopping malls, government agencies, municipalities, industries, schools and
other institutions. Approximately 12,000 people participated in the lectures and 15,000
received printed material through the information centers, including an exhibition on April
at a shopping mall as part of the Recycling and Environmental Week. About 50,000
brochures and flyers about energy conservation, renewable energy and other related
themes were distributed through these activities. Our quarterly newsletter “El Energético”
was also produced and distributed to government officials. Energy Awareness Month
was also celebrated on October 2006, and October 2007, with information centers at all
Wal-Mart and Sam’s stores in the Island, lectures at government agencies and workshops
for teachers. The Puerto Rico Energy Affairs Administration (PREAA) also participated
with an exhibition at the Natural Resources Symposium, October 23 and 24, 2007, at the
Puerto Rico Convention Center.                                                                         PREAA exhibition


ENERGY STAR®: As partners of the ENERGY STAR® program of the EPA, PREAA promotes this program showing the
citizens and government employees to save energy by buying ENERGY STAR® qualified products, and develop training
                  and educational materials. In addition, the agency is participating in a project in conjunction with the
                  Department of Housing for the development of a Low Energy Homes for Puerto Rico. “Low Energy
                  Homes” is a project of the Housing Department and the Energy Affairs Administration, with funding from
                  the Environmental Protection Agency, for the designing and construction of a model home that can
                  qualify for the “ENERGY STAR” mark. Pilot homes are in the process to be constructed at the
                  Municipality of Juncos for the development of a procedure for the certification of construction designs.

                   As part o the “Energy Awareness Month” the PREAA participated in the ENERGY STAR “Change a
Light, Change the World” campaign. This campaign was developed with Sam’s and Wal-Mart stores to motivate the public
to change at least one incandescent bulb for an ENERGY STAR compact fluorescent light (CFL) in their homes. PREAA
personnel promoted the use of ENERGY STAR qualified lights and other products at the Sam’s and Wal-Mart stores (9
and 15 stores respectively) through the entire Island during the month of October, 2006 and 2007.

PREAA have also joined efforts with the San Juan HUD office (U.S. Department of Housing and Urban Development) to
promote ENERGY STAR and energy efficiency practices among the public housing residents and administrators. On
September 19, 2007 we participated in a seminar for the directors of public housing projects.

In coordination with the General Service Administration, PREAA prepared a purchase guide for energy efficient products,
including ENERGY STAR as a requisite for the products with this qualification. This guide will be used by government
                                                                                                                               Page 136



PUERTO RICO

agencies to procure electric equipment. An executive order was also issued for the purchase of energy efficient
equipment.

Schools Program: We incorporated in our educational work plan curriculum materials, information and other tools from
the National Energy Development Project (NEED). Lectures about energy efficiency and energy sources are offered to
students, mostly from 5th grade to junior high school level. From the beginning of the current school year, from August to
October 2007, we offered 83 lectures to 2,075 students. Also, from October 2006 to October 2007, we offered 9
workshops to science teachers about the Energy Educational Manual, prepared by our office; one in each of the 7
education regions, and another two by request at the Education Region of Caguas.




                                            Winners of the Solar Car Race. From left to right: students from Gerardo Sellés,
                                           Agustín Cabrera, University Gardens, Rexford Tugwell and Manuela Toro Schools



The Energy Educational Manual was designed to be integrated with the science curriculum for 5th and 6th grades. It
contains information and activities about energy conservation, energy sources, and environmental impact. Personnel from
the PREAA offered lectures about these themes and demonstrated activities that the teachers can carry on in the
classroom. An average of 30 teachers participated in each workshop. These teachers will carry the message to other
teachers of the education region. 200 Manuals were provided to each education region to be distributed among teachers.

As part of the Schools Program, the Puerto Rico Energy Affairs Administration, in coordination with the Department of
Education, celebrated a solar car RACE, on May 1, 2007 at the Olympic Park of Juncos. Thirty junior high schools from
around the island participated in this race.

Car Care Clinics: The goal of this activity is to decrease the toxic emissions and increase the efficiency of motor vehicles,
through an electronic diagnostic analysis. 3745 vehicles were analyzed in the Car Care Clinics during the last fiscal year.

Energy Efficient Practices at State Government: The purpose of this program is to increase the energy efficiency of
Government facilities and operations, and to reduce the impact of rising energy costs on the government operating
budget. The Government of Puerto Rico contributed with 900,000 dollars for a relamping project in 6 government
agencies. The purpose of the said project is to serve as a test pilot project in order to demonstrate the benefits of
replacing conventional lighting systems for more efficient ones in public agencies, as part of an energy efficiency plan.
Relamping of the agencies was completed during 2007 and in the year 2008 we will be monitoring the savings of this
project.
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PUERTO RICO

PREAA also offers energy inspections to government agencies and promotes the implementation of energy conservation
plans. The inspections focus on the illumination systems and in the relamping savings. For example, the building where
the Governor of Puerto Rico lives and has his offices, a historic building called “La Fortaleza”, can save $12,019.36
annually by relamping. This and other surrounding government buildings can save $78,662.19 by relamping.

As part of the Government policy to save energy, PREAA is also promoting reduction of fuel consumption among
government fleets. PREAA personnel offer lectures and orientation to government employees and fleet directors on this
mater and require a fuel consumption report.

Energy Integrated Services: The goal of this program is to increase energy efficiency in municipalities, and increase the
community and municipal employees’ awareness of energy and related issues. Lectures, car care clinics, information
centers and energy inspections are offered simultaneously in a municipality during the same week. 15 municipalities were
visited from June to September 2007. Municipalities with high electric energy consumption are identified through this
program and PREAA started the development of energy management guidelines for municipalities.

Renewable Energy Projects Coordination: To encourage the reduction of fossil fuel usage and the utilization of
renewable energy sources. PREAA evaluates renewable energy proposals for available funding for the proposed project.
In the year 2002, the PREAA granted $600,000 for the development of Solar Public Lighting Projects in six municipalities.
We are evaluating six new Solar Public Lighting Projects in other municipalities and another six at fishery locations.

Solar Energy Program: The Solar Program certifies the solar water heaters distributed in Puerto Rico and offers
technical assistance in the design of solar photovoltaic systems. During the last fiscal year, two new water heater models
were certified. These certified models get a tax deduction of up to $1,500. Information about the certified models was
included in two newspaper ads on March 2007. At the end of 2007, new companies contacted our office interested to be
certified, because the certification is being required for solar water heaters to be installed at new housing projects.

The Department of Natural & Environmental Department, of which the PREAA is part, has been restoring its facilities at
the natural reserves, incorporating in some of them photovoltaic energy. PREAA has been assisting in the design of these
systems and providing technical support for these projects. PREAA also granted funds for the solar project at the “Rio
Abajo” reserve.

Wind Energy Program: A wind assessment study was initiated for Puerto Rico, as part of the Wind Energy Program.
Phase I was the establishment of a partnership with the University of Puerto Rico at Mayaguez and the Puerto Rico
Electric Power Authority; and the identification of prospective sites for measurement. A Phase II has been completed with
the evaluation of a proposal and the wind assessment on proposed sites. An existent wind map has been updated with
the results from the wind energy assessment study. An Assessment Loan Program will be developed as part of the Wind
Energy Program.

Commercial Wind Farm Project: The Puerto Rico Energy Affairs Administration is the proponent government agency for
a commercial wind farm project. The project consists of 25 wind turbines with a generating capacity of 1.65 MW each and
a total capacity of 41.3 MW. With an estimated investment of $60 millions of private capital, the wind farm would generate
approximately 110,000,000 kWh /year, which is equivalent to the energy consumption of approximately 23,000 families.
The Environmental Impact Statement was produced for this project and it is now in the process of public hearings and
evaluation for permits. This would be the first wind farm project for Puerto Rico.

Puerto Rico Energy Emergency Preparedness Plan is developed and updated annually by the PREAA.
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PUERTO RICO

Solar Assisted Hydroponics Projects: In 2006, the Puerto Rico Energy Affairs Administration and the Education
Department signed an agreement for the installation of Solar Assisted Hydroponics Systems in five agricultural schools.
The solar components of these systems were installed during 2007.




Industrial Technologies Program (ITP). The PREAA is developing the Puerto Rico Industrial Energy Council proposal
for the Industrial Technologies Program (ITP). The Puerto Rico Manufacturers Association (PRMA) adopted the Energy
Council on 2006 and turned it into the “Energy Alliance”. A workshop to present this alliance was held on February 28,
2007. The workshop included also a best energy practices panel, and was the beginning of a series of meetings for this
alliance, with the purpose of promoting energy efficiency in the industries. Members of the PRMA are in charge of the
Energy Alliance in coordination with the PREAA, making an in-kind contribution.

Some of the Alliance objectives are:
• Educate industry people, employees and community about the necessity of reducing energy consumption and
   demand.
• Coordinate with the Energy Affairs Administration for the development of work plans that enable more integration
   between government, industry and commerce.
• Develop systems that enable the identification and availability of the best practices that helps reduce energy
   consumption and demand.

PREAA sponsored the Alliance meetings at to the Industrial Association West Region (May 4, 2007,) South Region
(September 6), and participated with a guest from the ITP, to the Industrial Association Convention, June 1, 2007. PREAA
sponsored and coordinated with the Energy Alliance the seminar “Energy Sources for Puerto Rico and the Future of
Electric Interconnection”, October 10 2007. On November 16, 2007 we offered the ITP Pumping System Assessment
Training, for the members of the alliance.

Legislative bills submitted and approved: Legislative bills to encourage the acquisition of hybrid vehicles and solar
equipment through tax incentives were submitted on March 12, 2007. The first bill will exempt hybrid cars from taxes
during a year (from June 2007 to June 2008). A hybrid vehicle is defined in this bill as a vehicle that combines a
conventional fuel vehicle with a rechargeable electrical one. The second project will increase the deduction in the income
tax for the purchase and installation of solar equipment. For this bill, solar equipment is defined as all equipment that can
transform solar energy into usable energy, directly or indirectly, purchased or built by the tax payer. These bills were
signed by the Governor and became law.

The PREAA leverages the federal funds we receive for our energy efficiency programs to make them as effective as
possible. PREAA’s SEP federal grant funds leveraged expenditures of funds from state, Petroleum Violation Escrow, and
other sources.
Page 139



PUERTO RICO

                          State Energy Program(SEP) - U.S. Department of Energy
                             Funds Awarded and State Cost Share – Puerto Rico
State FY          Federal SEP Grant           Cost Share           Total State Match   Cost Share
FY 2005               $543,000                   80%                   $116,841           20%
FY 2006               $433,000                   71%                   $120,959           29%
FY 2007               $563,000                   80%                   $113,390           20%
Totals               $1,539,000                  77%                   $351,190           23%

   Contribution Source       SEP Formula Grant FY       SEP Formula Grant FY 2007      Total

SEP Federal                                 $433,000                        $563,000       $996,000
State                                       $120,959                        $113,390       $234,349
PVE                                         $393,451                         $74,886       $468,337
Other                                       $216,789                        $359,158       $575,947
Total                                     $1,164,199                      $1,110,434     $2,274,633
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SOUTH CAROLINA

South Carolina Energy Office
1201 Main Street, Suite 430
Columbia, SC 29201
Phone: 803.737.8030
Fax: 803.737.9846
Website: http://www.energy.sc.gov/


The South Carolina Energy Office (SCEO) provides a broad range of resources designed to help citizens, businesses, and
public entities save energy - and money - through greater efficiency, better information, and enhanced environmental
quality. We link local expertise with federal funding to address state and national energy priorities. By leveraging federal
dollars, we have been able to work with a significantly larger funding pool. Activities funded by the State Energy Program
(SEP) during the last decade have already produced almost $170 million in savings. Over the past five years, every
federal dollar spent has returned an average of $20 in energy savings.

2007 Program Highlights: The SCEO concentrated its efforts on promoting biomass and other renewable energy in
2007. As a result, South Carolina can boast some of the best alternative fuel incentives in the nation and the highest
number of commercially available alternative fuel pumps in the Southeast.

Alternative Fuels: The SCEO used SEP funds to increase production and use of alternative transportation fuel
significantly through education and policy development. We:
• Sponsored successful workshops and conferences on alternative fuels;
• Facilitated and publicized the locations of over 45 stations offering E85, B20 or both;
• Provided conservation information and instructions on how to identify a flexible-fuel vehicle to all students in high
      school driver education classes across the state;
• Developed state tax incentives for producers and distributors of alternative fuel;
• Developed state tax incentives for purchasers of alternative-fueled vehicles.

Biomass Energy: In 2007 we used SEP funds to establish South Carolina as a leader in biomass energy. We:
• Developed the South Carolina Biomass Council into a permanent entity, supported by dues and involving an ever-
    growing number of producers, distributors, researchers, and entrepreneurs who come together to exchange ideas
    and develop projects;
• Researched, developed, and assisted in writing legislation that provides tax credits for the purchase and installation
    of equipment to produce electricity and gas from biomass, and incentive payments for biomass energy users of $0.01
    per kwh and $0.09 per therm up to $100,000; and
• Established a “One-Stop-Shop” for investors interested in locating biomass projects in the state.

Renewable Energy Grants and Low-Interest Loan program: In addition to tax incentives, the South Carolina Energy
Office used the SEP to facilitate the creation of the S.C. Renewable Energy Infrastructure Development Fund, which
provides much needed aid to individuals, businesses, and research institutions for solar, wind, and biomass energy
projects. We have already seen the effects of this program in attracting investors from around the country. The programs
leverage $6 million in state funds for planning grants, research and development grants, demonstration grants and low-
interest revolving loans.

Solar Incentives: SCEO developed a rebate program for solar hot water systems installed in any certified “green”
residence, and facilitated a state solar income tax credit of up to 25 percent of the solar installation and equipment costs
for homes or businesses, up to $35,000. Through the SC Solar Council, SCEO assists small businesses marketing solar
installations.
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SOUTH CAROLINA

Green Power: The SCEO joined the state’s three investor-owned utilities and state regulators to create Palmetto Clean
Energy (PaCE), which provides a mechanism for electricity customers to purchase “green” power generated by
renewables, with revenues used to fund development of new sources of renewable energy in the state.

In addition to support of biomass and renewable energy, the SCEO had significant activity in other areas, including:

Promoting Energy Efficiency: As the President of Duke Energy says, energy efficiency is the “fifth fuel.” To promote use
of that fuel, we:
• Educated over 700 private and public sector energy managers through technical workshops and training sessions on
     topics ranging from boiler efficiency to green building;
• Sponsored Certified Energy Manager training, so that credentialed energy managers will significantly improve energy
     efficiency in their organizations;
• Educated over 3,700 citizens about energy efficiency at conferences and workshops around the state;
• Conducted energy audits to save thousands of dollars annually for clients;
• Maintained a revolving loan “ConserFund” with over 31 loans in the portfolio yielding total energy savings of over $33
     million expected over the lives of the projects. Funds are available to governmental entities, school districts, and
     qualified non-profit organizations.

Saving Energy through Green Building: Buildings are responsible for a large percentage of the energy used in South
Carolina. To reduce that amount, SCEO has:
• Sponsored workshops on green building for schools and homes, and training in new Leadership in Energy and
    Environmental Design (LEED) standards, educating over 150 individuals;
• Worked to pass legislation requiring new state construction to be certified LEED Silver or the equivalent;
• Trained over 100 builders in the EarthCraft House program, leading to the construction of 102 energy efficient
    EarthCraft houses.

Protecting the Environment: Clearly, energy and environment are closely linked. In 2007, SCEO increased efforts to
limit greenhouse gas emissions, both directly and indirectly. We:
• Facilitated truck stop electrification stations at locations in three states along I-85; the S.C. site alone displaced
      140,000 gallons of diesel fuel and reduced CO2 emissions by 1,450 metric tons;
• Worked with the Governor’s Climate, Energy and Commerce Advisory Committee, planning the state’s response to
      climate change;
• Worked with cities addressing climate change, sponsoring a “Green is Good for Business” conference and assisting
      businesses seeking green business certification through “Green Biz Boot Camp”;
• Refined our tracking system to measure not only dollars saved, but environmental benefits accrued from SEP
      programs. While the “benefits matrix” is still a work in progress, it does show impressive results.

                                Environmental Benefits 2005-2007 (Partial Accounting)
                                Pollutant                       Metric Tons Eliminated
                                Carbon                          38,859
                                SO2                                 13
                                NOx                                572
                                CO                                  37
                                Fine Particulates                    2
                                VOCs                                 4
                                                                                                                      Page 143



SOUTH DAKOTA

South Dakota Energy Management Office
Joe Foss Building
523 E. Capitol Avenue
Pierre, SD 57501-3182
Phone: 605.773.3899
Fax: 605.773.5980
Website: http://www.state.sd.us/boa/ose/ose


The State Energy Program in South Dakota
The State Energy Program (SEP) is administered by the Energy Management Office within the Bureau of Administration.
The SEP in South Dakota provides funding for energy efficient projects at state owned facilities, including the higher
education campuses. The funding is in the form of grants or zero interest loans. The no-frills program we offer is intended
to put SEP dollars directly into cost-effective energy cost-saving projects. The projects reduce the energy costs at the
facilities and directly benefit the taxpayers of South Dakota. We are excited about SEP in South Dakota because it meets
a dire need for assistance found at many of our institutions.

Programs
South Dakota's Energy Efficiency Grant program provides grants for state-owned facilities, including institutions of higher
education for energy efficient projects. Projects must improve energy efficiency and resultant savings must produce a
simple payback of 15 years or less. Sub-recipients are required to provide a 50% match. Last year the program helped
fund lighting projects, energy recovery, and heating and controls upgrades, etc.

South Dakota developed an Energy Conservation Loan program using the Petroleum Violation Escrow funds. The loan
program is a zero interest loan to state agencies for energy efficiency projects. One such project is decentralization of the
Human Services Center heating system. HSC operates a central boiler plant with steam distribution throughout a tunnel
system. The steam distribution system is inefficient and results in a significant amount of heat loss. The project includes
individual heating systems at each building on the campus and an upgrade to the control system. The project cost is
approximately $3.2 million. The resulting energy savings are 30,537 MMBtu/yr. The state has two additional projects in
design and/or construction. Both projects include replacing an existing fossil fuel boiler with a biomass boiler. The facilities
are located in the Black Hills of South Dakota with close proximity to wood chips. February 2008, is the projected start
date of the STAR Academy boiler. The South Dakota Veterans Home boiler is currently in design.

The state uses and energy tracking database to track energy savings for all projects receiving SEP funds. This tracking
system allows the energy office to determine the success of each project. The database also provides a valuable tool in
determining energy usage at each campus and identification of potential energy saving projects.
Page 145



TENNESSEE

Tennessee Department of Economic & Community Development
312 8th Avenue North, 10th Floor
Nashville, TN 37243
Phone: 615.741.2994
Fax: 615.741.5070
Website: http://www.state.tn.us/ecd/energy.htm


Department realignment resulted in the Tennessee Energy Division reorganized and re-launched as the Energy Policy
Office during Fiscal Year 2006-2007. The Energy Policy Office is tasked with developing meaningful statewide policies,
programs and initiatives that promote energy efficiency, conservation, education and the expanded use of renewable
energy.

Statewide energy initiatives were headlined by Tennessee Governor Phil Bredesen calling for the creation of a state
alternative fuels strategic plan and investing over $37 million of direct state funding into the Tennessee Biofuels Initiative,
a partnership between the University of Tennessee at Knoxville and the Oak Ridge National Laboratory working to make
cellulosic ethanol from switchgrass. The Tennessee Biofuels Initiative was also awarded $135 million from DOE as pat of
a program to make cellulosic ethanol commercially viable by 2012.

The first Governor’s Conference on Biofuels was held May 30 - June 1 and offered educational and networking
opportunities for a variety of stakeholders interested in learning how to grow the biofuels industry in Tennessee. Farmers,
agriculture executives, entrepreneurs, local government officials and biofuels producers were well represented as the
conference featured insights from cutting edge bioenergy research institutions as well as real world advice from
manufacturers and the lending community.

The Governor’s Alternative Fuels Task Force was executively charged with developing a strategic plan to make
Tennessee a southeastern leader in the production, distribution and use of biofuels. The Task Force launched
www.biotenn.org to serve as the clearing house for alternative fuels information within Tennessee. The Energy Policy
Office participated extensively with the Task Force and led the writing efforts of the State Alternative Fuels Strategic Plan.

In addition to participating in the development of state alternative fuel policy, the Energy Policy Office continued to
promote energy efficiency, conservation and education to the general public, local governments, school systems,
businesses across Tennessee through a variety of successful programs.

Local Government Energy Efficiency Loan Program—The program makes loans to county/city owned local
government facilities for energy efficiency retrofits. Loans are made for up to $500,000 for each county or city government.
These loans are 0% interest for Tennessee Three-Star communities and 3% interest for non Three-Star communities. This
program also provides free energy saving assessments to identify needed energy efficiency measures. During Fiscal
Year 06-07, 36 local governments and school systems had free energy audits performed on 82 buildings. Thirteen (13)
loans were approved totaling $3,511,995.

Small Business Energy Efficiency Loan Program—The Small Business Energy Efficiency Loan Program (SBELP) was
implemented in 1988 to assist Tennessee businesses in the identification, purchase and installation of energy efficiency
measures on their existing buildings and facilities. The program makes low interest and no interest loans available to
finance the cost of implementing the measures that are identified in an energy audit. To date, over 300 small business
have received loans totaling over $13.3 million resulting in cumulative energy savings over $25.5 million and an economic
impact in excess of $113 million.
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TENNESSEE

Small Business Energy Efficiency Technical Assistance—The program provides free energy efficiency technical
assistance (energy audits) to all Tennessee businesses, regardless of size. During the most recent FY 06-07, a total of 87
energy audits were performed for businesses throughout Tennessee.

Tennessee Clean Energy Technology Grant Program (TN-CET) - The purpose of the program is to assist existing
Tennessee retail, commercial and industrial companies supplant the use of fossil fuels by using approved renewable and
other clean energy technologies and systems. The $4,000,000 grant program makes available a grant of up to 40% (not
to exceed $75,000) of the installed cost of photovoltaic, wind energy, solar water heating, hydrogen fuel cell and hybrid
solar lighting systems.

Biodiesel Infrastructure Program—This program provides grants to each Tennessee county government for the
purchase and installation of Biodiesel tanks, pumps and card readers to be used for fueling biodiesel vehicles in those
communities. Three-Star communities qualify for 75% grants and non three-Star communities qualify for 50% grants. Over
$1.1 million has been allocated to this program to make biofuels more readily available to local government fleets across
the state.

Clean Cities Program—The Clean Cities Program is sponsored by the U.S. Department of Energy and was created to
advance the use of cars and trucks powered by alternative fuels. The program promotes the purchase of alternative fuel
vehicles and the expansion of the AFV-refueling infrastructure. The Energy Policy Office has provided start-up funding of
$460,399 to 3 Clean Cities programs in Tennessee. Programs in Knoxville and Nashville have been officially designated
by the U.S. DOE as Clean Cities and our Clean City program in Memphis is working towards official designation.

Industrial Technology Program—Tennessee’s Energy Policy Office participates in national level industrial programs that
have provided business support, contributing to job retention through deployment of energy saving industrial technologies.

         Industries of the Future—The Energy Policy Office, under a Memorandum of Understanding between DOE
         and the State of Tennessee, has implemented a program between Tennessee Tech and two of the vital IOF
         industries—metal casting and chemicals—in an effort to research and deploy improved manufacturing strategies
         or methods that reduce energy consumption. The Energy Policy Office also promotes Best Practices workshops
         and energy assessments through an agreement with Tennessee Tech. In 2006-2007, eight (8) workshops and
         free assessments were delivered to industry.

         Save Energy Now—The U.S. Department of Energy launched Save Energy Now to help American businesses,
         factories, and manufacturing facilities save energy and continue to thrive during this time of diminished supplies
         and rising energy costs. A free energy assessment, comprised of a walk thru and site analysis of a particular
         energy system, is conducted by a DOE-certified expert, who also uses the Best Practices tools to inspect the
         systems(s) and to provide on site assistance and training to the plant manager or operator.

Tennessee Energy Education Network (TEEN) - promotes energy education in grades K-12 statewide. TEEN develops
and distributes energy educational materials for teachers, students and classrooms, conducts in-service training
workshops for teachers and classroom presentations for students, conducts annual energy contests, energy education
training conferences for students and publishes a bimonthly newsletter. Accomplishments for fiscal year 2006-07 include
teacher training workshops for 627 teachers (up from 343 in 05-06), classroom presentations for 5,549 (up from 4,578 in
05-06) students and distribution of over 39,000 materials for classroom use statewide. The Tennessee Energy Education
Network is the state coordinator for the National Energy Education Development Program (NEED). Huntingdon Primary
School was awarded the National Primary School of the Year for third consecutive year in the NEED Youth Awards for
Energy Achievement competition.
Page 147



TEXAS

Texas State Energy Conservation Office
111 East 17th Street
Austin, Texas 78774-1440
Phone: 512.463.1931
Fax: 512.475.2569
Website: www.seco.cpa.state.tx.us


Texas State Energy Conservation Office (SECO)
SECO helps Texas make the most of domestic energy, reduce state and local government energy costs and promote cost
-effective, clean-energy technologies. SECO’s mission is to maximize energy efficiency while protecting the environment.

                                         State Energy Program (SEP) Funding

                               State Energy Program (SEP) - U.S. Department of Energy
                                    Funds Awarded and State Cost Share - Texas
State FY              Federal SEP Grant          Cost Share            Total State Match                    Cost Share
FY 2000                  $1,819,900                 42%                    $2,502,300                          58%
FY 2001                  $1,864,000                 51%                    $1,807,519                          49%
FY 2002                  $2,182,000                 47%                    $2,421,119                          53%
FY 2003                  $2,653,000                 69%                    $1,196,525                          31%
FY 2004                  $2,668,000                 76%                     $864,191                           24%
  FY 2005                $2,611,000                 76%                     $840,238                           24%
  FY 2006                $2,663,000                 34%                    $5,069,246                          66%
  FY 2007                $1,984,000                 23%                    $6,788,894                          77%
   Totals                $18,444,900                46%                   $21,490,031                          54%

State Energy Program (SEP) Activities
LoanSTAR Revolving Loan Program: has saved taxpayers more than $224.6 million through energy-efficiency projects for
state agencies, institutions of higher education, school districts, county hospitals and local governments. Borrowers repay
loans through cost savings generated by the projects. LoanSTAR-funded projects have also prevented the release of
7,781 tons of nitrogen oxides (NOx), 2.3 million tons of carbon dioxide (CO2) and 5,339 tons of sulfur dioxide (SO2).

Schools/Local Government Energy Program: has helped more than 3,500 schools and other units of local government
set up and maintain effective energy-efficiency programs. SECO provides facility preliminary energy assessments, energy
management training workshops, technical support in designing new facilities and on-site training for student energy
awareness projects. Clean energy technologies are demonstrated at public facilities and school districts to increase
awareness and address air quality at the community level. Texas schools also employ the computer power management
software that puts monitors to “sleep” when not in use. Over 136,000 school computers now use this software, saving 42
million kWh and reducing energy costs by $3 million annually.

Energy Education Program: promotes energy conservation and efficiency through education. The program strives to lay
the foundation for environmental stewardship in teachers and students through critical-thinking and problem-solving
investigations in Texas Education Agency approved workshops. Over 2,500 teachers have attended these workshops and
utilized the materials in their classrooms reaching over 375,000 students. The program also supports fuel cell technical
training curriculum development at the college level.
                                                                                                                     Page 148



TEXAS

State Agencies/Higher Education Program: ensures that new facilities are designed and built with energy efficiency and
water conservation in mind. Projects include administration and maintenance of the Energy and Water Conservation
Design Standard for new state buildings and major renovation projects. Other initiatives include development of statewide
employee energy awareness through workshops on how energy efficiency and employee behavior can reduce energy
use. The program provides educational materials on how to use energy more efficiently through product procurement,
innovative technologies and sustainable design practices. This program also provides education and outreach on
residential and commercial energy codes statewide. The goal is to demonstrate the clear benefits of energy codes and
standards in improving the quality of life, the environment and the safety and health of communities.

Energy Management Services: a comprehensive energy management program designed to significantly reduce energy
and utility expenditures in state-owned facilities. The State of Texas spent over $216 million in energy and utility
expenditures in 2006. Program components include construction of a state-of-the-art energy and utility information
management system, a comprehensive analysis of historic and future utility bills, energy procurement at the lowest
possible rates and best available terms, and owner’s representative services on ongoing and future energy-conservation
projects. Institutions of higher education, state university systems and local governments are eligible to participate in the
program.

Innovative Energy Program: promotes the use of renewable energy and sustainable building practices through
technology demonstration, hands-on instruction and renewable energy education. Renewable energy has significant
economic, security and reliability benefits and opportunities for Texas communities and individuals as they develop and
use these resources. SECO increases public awareness of Texas’ vast renewable energy resources and provides the
public better access to vendors, financing options, and renewable energy incentives through its educational web site, The
Infinite Power of Texas, at www.infinitepower.org.

Alternative Fuels Program: demonstrates the positive environmental impact, technical feasibility and energy efficiency of
domestically-produced alternative fuels. The Alternative Fuels Program is designed to assist state agencies, school
districts, local government and private fleets to operate more of their fleets on alternative fuels. Initiatives include support
for the Clean Cities Program, Clean School Bus USA Program, Mechanics Education Outreach and Air Quality
Demonstration Projects.

Housing Partnership Program: promotes the efficient use of energy in low-to-moderate-income housing through
partnerships among nonprofit organizations, community action agencies, local governments, utility companies, public
housing authorities and social service organizations. The program encourages community and residential involvement in
energy-efficiency projects such as housing retrofits, model demonstration projects, technical training assistance and
energy education workshops and seminars.

Pollution Mitigation Program: assists political subdivisions in the 41 non-attainment counties to reduce electric
consumption in their facilities by implementing cost-effective energy efficiency projects. SECO provides technical support
and guidance through the Texas Energy Partnership, a joint initiative involving SECO, the U. S. Department of Energy and
ENERGY STAR®. Information, planning tools and electronic reporting are offered at www.texasenergypartnership.org.
Page 149



UTAH

Utah State Energy Program
1594 West North Temple, Suite 3110
P.O. Box 146100
Salt Lake City, UT 84114-6100
Phone: 801.537.3300
Fax: 801.538.4795
Website: http://www.energy.utah.gov


Energy Codes Training: On January 1, 2007, Utah adopted the 2006 International Energy
Efficiency Code for all new buildings and building renovations. In order to increase awareness of the new Code and to
improve building code compliance, USEP established and managed a new energy code training program. Funding from
major utilities’ demand-side management programs was obtained for the bulk of contractor and on-site expenses ($50,000
from Questar Gas and $40,000 from Rocky Mountain Power). USEP organized 22 days of training across the state,
targeting builders, code officials, architects, and engineers. The program saw nearly 800 attendees at either whole or half-
day sessions. The program is scheduled to continue in 2008 with added sessions for special topics and in-office, in-depth
training for local code officials.

Zero-Interest School Loan Program: In its 2007 session, the Utah Legislature established a $5 million energy efficiency
loan fund for school districts to use in financing energy efficiency improvements. USEP has used the fund to create the
Zero-Interest Loan Program. Loans of up to $250,000 are available to schools for energy projects in new or existing
buildings. Loan terms are set such that loan payback amounts are equal to energy cost savings attributable to the project,
resulting in no new net cost to the schools for their projects. USEP has created the administrative framework to begin the
program, including writing new rules and establishing a new energy efficiency specialist position to administer the
program. First loans are anticipated to occur in Spring 2008.

Renewable Energy Tax Credit: In the 2007, the Legislature also reauthorized and expanded Utah’s renewable energy
tax credits by making geothermal systems eligible for investment-based credits and creating a new production tax credit
for large systems producing electricity. In order to implement the new statutes, USEP undertook an extensive revision and
expansion of the rules governing tax credit eligibility to ensure the safety and viability of the systems awarded credits.
Also during 2007, USEP processed applications for tax credits under both the new and old statutes and rules. During the
year, 90 tax credit applications were awarded for nearly $300,000 in state assistance to renewable energy development.

Anemometer Loan Program: USEP has operated an anemometer loan program since 2001, collecting data from 74
distinct sites across Utah. The need for on-site wind resource data is especially important in Utah as conventional
computer-generated wind resource maps fail to capture the complexity and unpredictability of air flow in Utah’s complex
terrain. In 2007, USEP established 12 new sites using 20-meter anemometer towers and 4 new sites with 50-meter
towers. Data collected by USEP in Summit County in 2007 has led to active resource exploration near the Wyoming
border by commercial developers.

Renewable Energy Initiative: In the Spring of 2007, Governor Huntsman created a stakeholder group to study additional
ways to encourage the development of renewable energy in Utah as a means of addressing climate change. The group
met weekly throughout the summer and USEP played an active role, including making two major presentations outlining
renewable resource availability and the economic potential and implications for renewables in the state.
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VERMONT

Vermont Energy Efficiency Division
112 State Street, Drawer 20
Montpelier, VT 05620-2601
Phone: 802.828.2811
Fax: 802.828.2342
Website: http://publicservice.vermont.gov/divisions/energy-efficiency.html


The Energy Efficiency Division of the Vermont Department of Public Service works to promote energy efficiency and
renewable energy in Vermont through several forums, including regulatory, legislative, informational and educational. The
program also assists other organizations in applying for Department of Energy’s energy efficiency and renewable energy
grants.

Although there were no statutory changes in 2007, Vermont has taken the following actions to promote the more efficient
use of energy:

•    After vetoing H.520, An Act Relating to the Conservation of Energy and Increasing the Generation of Electricity within
     the State by use of Renewable Resources, Governor Douglas decided to implement over 20 items contained in
     H.520 administratively. These include 25 x ’25, smart metering, SPEED (Sustainably Priced Energy Enterprise
     Development) goals, permitting small hydro, biodiesel use in state buildings, garages, and transportation fleet, and a
     study of the feasibility of establishing energy efficiency mortgages, to name a few.

Clean Energy Development Fund: In 2005, the Vermont General Assembly established the Vermont Clean Energy
Development Fund through Act 74. The purpose of the Fund is to promote the development and deployment of cost-
effective and environmentally sustainable electric power resources – primarily with respect to renewable energy
resources, and the use of combined heat and power technologies - for the long-term benefit of Vermont electric
customers. Act 74 specifies that the Fund shall be managed to promote:

•    The increased use of renewably produced electrical, thermal energy, and combined heat and power technologies in
     the state;
•    The growth of the renewable energy-provider and combined heat and power industries in the state;
•    The creation of additional employment opportunities and other economic development benefits in the state through
     the increased use of renewable energy and combined heat and power technologies;
•    The stimulation of increased public and private sector investment in renewable energy and combined heat and power
     related enterprises, institutions, and projects in the state.

Sample of Vermont SEP Programs

Agricultural Demand Side Management (DSM) Program: Support continues for these customer incentives for the
purchase of compressor heat reclaimers where the savings are related to fossil fuel driven equipment at dairy farms
throughout the state.

Clean Cities Coalition: Vermont has invested over $20,000 from the SEP budget to provide funding to contractors to
operate the Vermont Clean Vehicles Coalition, which includes staff salaries for the Coordinator and outreach activities and
materials.

School Energy Management Program: The purpose is to maximize the long-term benefits of Federal, State, and Local
Investments by providing schools with management tools and with the support required to successfully implement
effective, long-term energy management systems and practices. Since the late 70’s Vermont schools have received more
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VERMONT

than $7 million in DOE energy conservation investments. This program has helped schools achieve energy cost savings
of over $1,000,000 per year.

Vermont Campus Energy Group (VCEG): Continuing beyond the life of a Rebuild America grant, this program provides
continued support of the promotion of energy efficiency and renewable energy projects and education on Vermont’s
college and university campuses.

Vermont Energy Education Program (VEEP): This program provides in-class presentations and professional
development sessions, loan kits and supplies to teachers for some VEEP programs. In addition, VEEP offers Vermont
teachers training, materials, and follow-up support to enable them to address science, technology, engineering, and
mathematics education standards. VEEP supports Governor Douglas’ proclamation to reduce greenhouse gas emissions
in Vermont by helping teachers and students understand that for each kilowatt-hour we reduce, we reduce 1.3 pounds of
CO2.

Sample of Special Projects

                                                      BUILDINGS
Vermont High Performance Schools Implementation Project: DOE awarded $150,000 to improve the energy
performance of Vermont’s schools as well as energy education in Vermont’s classrooms, increase stakeholder awareness
of energy performance in Vermont’s existing school buildings, and support efforts to improve the energy performance of
school buildings throughout the state.

                                                        INDUSTRIAL
Leveraging Manufacturing Productivity and Energy Efficiency Resources on a Regional Basis: DOE awarded
Vermont $6,750 to support comprehensive compressed air system audits at industrial facilities throughout the state. More
specifically, these funds are being used to cover a portion of the audit fee for customers that implement a significant
number the recommended measures from the audit.
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VIRGINIA

Virginia Division of Energy                                                                              
202 North Ninth Street, 8th Floor
Richmond, VA 23219
Phone: 804.692.3200
Fax: 804.692.3238
Website: http://www.dmme.virginia.gov/divisionenergy.shtml


The Division of Energy (DE), Department of Mines, Minerals and Energy (DMME), is the State energy office for the
Commonwealth. The Division works to a) increase the use of proven energy conservation practices in Virginia; b) foster
growth of emerging and sustainable energy industries and infrastructure; c) identify applications of new and innovative
energy technologies in Virginia; d) advance partnerships that will enable energy efficiency and economic development
opportunities; e) improve the energy efficiency of commercial, institutional, and residential buildings in Virginia; and f)
provide energy education and outreach to Virginians to increase their ability to make informed energy choices.

                                                  2007 Accomplishments

Virginia Energy Plan
The Virginia Energy Plan was established in 2006 legislation. The Department of Mines, Minerals and Energy was tasked
with developing the 10-year comprehensive Energy Plan, which was released by Governor Timothy M. Kaine on
September 12, 2007. The Plan sets out the four broad goals of expanding conservation and efficiency practices, providing
needed energy resources to support our economy, and beginning to address the challenges we face from greenhouse gas
emissions. Details include:

•    Increase energy independence, with an emphasis on conservation and clean fuel technologies, by:
          • Reducing the rate of growth of energy use by 40 percent. This will reverse the projected growth in per
               capita energy use and result in a nearly level per capita energy use per year.
          • Increasing Virginia’s indigenous energy production by 20 percent.
•    Expand consumer energy education to overcome barriers to implementing energy-efficiency and conservation
     actions.
•    Reduce greenhouse gas emissions by 30 percent by 2025, bringing emissions back to 2000 levels.
•    Capitalize on economic development opportunities through business expansion and increased research and
     development in areas of strength, including alternate transportation fuels, nuclear technology, coastal energy
     production, and carbon capture and storage.

Virginia Rebuild America and Building America Programs
The Virginia Sustainable Building Network (VSBN) administers the VA Rebuild America and Building America programs.
VSBN has confirmed a total of 38 Rebuild America partnerships. Rebuild America and Building America programs were
represented at various conferences and expos throughout the year. The Second Greening Virginia Universities
Conference held October 26 and hosted by the University of Virginia, featured breakout sessions on Green policy,
curricula, operations, and campus/community connections; almost 200 enthusiastic attendees; and outstanding exhibitors.
Other active involvement included the Commonwealth of Virginia Energy and Sustainability Conference (COVES); State of
High Performance Schools in Virginia Conference; Piedmont and Roanoke Energy Expos, and the State Fair of Virginia.
VSBN continues to provide support for on-going building of the EarthCraft House Single Family homes. Over 40 builders
are involved in 16 active projects, and an estimated 100-150 homes are being built in 2007 in Virginia. The Energy
Assistance Incentive Grant program energy audits were completed at selected public schools in Westmoreland and
Patrick Counties and the City of Charlottesville.
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VIRGINIA

Clean Cities Program
Virginia Clean Cities (VCC) continues work with Maryland, the DC Energy Office, the federal General Services
Administration, General Motors, and Virginia Regional Environmental Management Systems (VREMS) to eventually install
up to 12 publicly accessible E85 dispensing stations along the I-95, I-64 Crescent corridor that passes through Virginia,
Maryland, and the District of Columbia. This project can make E85 available to an estimated 15,000 public and private flex
fuel vehicles. The first E85 station opening occurred on June 28, 2007 at a Washington, DC Mid-Atlantic station, and the
owners plan to add up to four additional Mid-Atlantic stations within the Capital Beltway.

Out of 27 applicants, Virginia Clean Cities was one of nine Clean Cities Coalitions to be awarded $10,000 from the
National Biodiesel Foundation to conduct fuel quality workshops to help educate state fleet managers and other
employees about the advantages of biofuels and best fuel management practices to ensure a seamless and trouble-free
conversion from petroleum-based fuels to biofuels.

VCC completed the Fuel Quality Best Management Practices Guide, which covers biodiesel preparedness, blending
practices, cold weather handling, ASTM, BQ9000, and administrative tips for distributors, marketers and users. VCC also
designed and coordinated four Biodiesel fuel Quality Seminars to advance education on biodiesel quality issues;
conducted two workshops at the Virginia Biodiesel Refinery on biodiesel handling, storage and cold-weather management;
and completed a detailed final report for the Southern States Energy Board about its Clean Cities biodiesel workshop
series grant.

The graph below trends the number of alternative fueled vehicles (AFVs) against total fleet size for fleets participating in
the Virginia Clean Cities programs.




Support to State Facilities -Performance Contracting
Total dollars under contract or in process in state facilities is at $135,386,735. Projected savings are projected to just over
$11 million per year. This may result in a simple payback of about 14.4 years per project.

Solar and Wind Power
The DMME and The Science Museum of Virginia coordinated with Virginia Tech to bring the Virginia Tech award winning
Solar Decathlon house to Richmond. The house is prominently displayed in front of the museum, is open to the general
public, and is fully operational.
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VIRGINIA

The Science Museum of Virginia, with support from DMME, is completing several interactive renewable energy displays as
part of the Museum’s developing “Discovery Park”. The displays include a demonstration solar house that uses building-
integrated photovoltaic roof tiles with integrated solar thermal hot water heating and a geothermal heat pump. The exhibit
also includes a 1 kW wind turbine, and a set of three user-movable mirrors that can be simultaneously aimed at a central
receiver to demonstrate the concept of concentrating solar power.

The Henrico County solar PV project at Mills Godwin High School was installed and dedicated at the Henrico Energy
Symposium in October.

The Virginia Small Wind Incentives Program has led to the installation of 7 small wind turbines, including a second 10-kW
Bergey turbine installed at the Volvo Truck manufacturing plant in Dublin, VA.

The Virginia Anemometer Loan Program has installed instrumentation and towers at 33 sites across the Commonwealth
including data from thirty-two 20-meter met tower installations and one 50-meter tower. Plans moving forward include the
acquisition of another two, 50-meter towers and to specifically target locations with a higher likelihood for commercial wind
development.

The Virginia Wind Energy Collaborative at James Madison University and DMME have been exploring the potential for a
community wind power project on or near Tangier Island in the Chesapeake Bay. VWEC members have met with the
Mayor and other officials, and held an information meeting with island residents. So far, there has been guarded support
for the potential to host one or more wind turbines to help support the Island’s dwindling economy, based mostly on fishing
and some tourism.

The Gereau Center for Applied Technology and Career Exploration in Rocky Mount, Virginia has nearly completed the
installation of several renewable energy systems including a wind turbine, solar photovoltaic panels that power a
greenhouse/aquaculture lab, solar hot water for the school cafeteria, and several remote solar lighting and crosswalk
signs.

ENERGY STAR
In March, Governor Kaine signed legislation establishing the Energy Conservation Awareness Week and Virginia’s first
ENERGY STAR Sales Tax Holiday, which was held October 5-8, 2007. Staff coordinated several tasks associated with
the sales tax holiday, such as: establishing a webpage on the DMME website as a public resource tool; developing
education outreach initiatives; engaging in outreach to power companies/cooperatives, retailers and manufacturers to
educate their respective customers about the holiday; assisting in the finalization of the Guidelines for the ENERGY STAR
Sales Tax Holiday for Retailers; coordinating with local press on an advertising campaign promoting the sales tax holiday;
coordinating with the Governor’s office to develop a PSA announcing the holiday and encouraging Virginia residents to
become more energy efficient. As part of the sales tax holiday, DMME became a Change a Light Pledge Driver through
the national Change a Light campaign and distributed roughly 49,000 CFLs to state agencies, at the State Fair, and
regional/local energy-related venues. DMME also signed up the Commonwealth as an ENERGY STAR Challenge Partner,
a national call-to-action to improve the energy efficiency of buildings by 10 percent or more.

Biomass
Old Dominion University (ODU), through the VA Energy and Environmental Network (VEEN) and on behalf of the Division
of Energy, created the “Biomass: Feasibility and Support of Biomass and Waste-to-Energy Projects in Virginia” grant
program. ODU solicited biomass proposals for feasibility studies or implementations that work to overcome the barriers to
biomass use. Four grants totaling $290,000 were awarded. The Division of Energy is collaborating in the development of
a Biomass Energy Group to promote the use of various biomass resources in Virginia; this stakeholders group is currently
designing a Biomass Roadmap for the state. DE is also participating in the Virginia Waste Solutions Forum, which is
planning two educational sessions in 2008 for Virginia legislators and local farmers.
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VIRGINIA

Energy Education and Outreach

Virginia Sustainable Future Forum/State Fair of Virginia
The Division of Energy worked with VSF and State Fair of Virginia staff to plan and develop educational exhibits on energy
conservation, efficiency, and sustainability for this year’s State Fair, which took place September 27 through October 7,
2007 in Richmond. The theme of the event was “Eight Steps to a Greener Future for Virginia”, which included information
on energy, climate change, water quality, waste, alternative transportation, green building, air quality, and environmental
education. Particular emphasis was placed on energy efficiency to highlight the Virginia Change a Light Campaign,
Energy Awareness Week, and the ENERGY STAR Tax Holiday. At least 8,000 compact fluorescent light (CFL) bulbs
were distributed, and over 130 volunteers from other state agencies, organizations, businesses and universities staffed the
display. The CFL give-away was very effective in drawing people to the display; at least 15,000 to 20,000 people visited
the exhibit area.

Commonwealth of Virginia Energy and Sustainability (COVES) Conference 2007
DMME staff worked with Virginia Military Institute, the Virginia Sustainable Future Forum, and other energy stakeholders
to put on the second annual energy conference, held October 17-18, 2007 in Lexington, VA. There were approximately
426 attendees, with 50 hosts, sponsors, and exhibitors. This meeting brought together experts and stakeholders to
address key energy issues as they pertain to Virginia and to discuss elements of Virginia's new comprehensive energy
plan.

The Virginia Energy Savers Handbook
DMME published the third edition of its consumer guide to saving energy, money, and the environment, which is available
in both hard copy and CDs. Over 5,000 copies of our free handbook have been distributed to the citizens of the
Commonwealth this year.
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VIRGIN ISLANDS

Virgin Islands Energy Office
#45 Mars Hill
Frederiksted, St. Croix, USVI 00840-4474
Phone: 340.773.1082
Fax: 340.772.0063
Website: http://www.vienergy.org/


  The mission of the VIEO is to promote energy efficiency and advocate the use of renewable energy technology for the
    residents of the Virgin Islands through energy education, financial incentives and technical assistance programs.




ENERGY EDUCATION During this year staff conducted 48 presentations to approximately 1,350 residents in the
Territory. The presentations focused on energy conservation and efficiency, and Global Warming. Compact fluorescent
lamps (CFL), and other energy saving devices were disseminated. The beneficiaries of the presentations were varied and
included the Virgin Islands Housing Finance Authority Homebuyer’s participants, Government employees and retirees,
Rotary Club members, senior citizens and disabled residents at the Flamboyant Garden, and Education Complex, school
teachers and paraprofessionals at the Mini Quality Education Standard in Technology (QUEST) workshop.

GENERAL OUTREACH Staff disseminated energy conservation information, and demonstrated renewable energy
applications at major outreach activities as follows: We grow Food Agriculture and Food Fair on St. Thomas; the St.
Thomas/St. John; and the St. Croix Agriculture and Food Fair- the largest fair of the three where hundreds of residents
visited was held February 17th to 19th ; and Virgin Islands Energy Education Week (VIEEW) – March 18th to 24th.

For the kickoff VIEEW event, the VIEO partnered with the V. I. Waste Management Authority, and the V. I. Water and
Power Authority to sponsor Global Warming Specialist, Tim Greef as the presenter for the documentary movie “An
Inconvenient Truth”. Mr. Greef conducted a slide presentation on March 18 in the Sunny Isle Amphitheater on St. Croix;
approximately 100 residents attended the event. During the weeklong celebration of energy education in the Territory, staff
conducted presentations in the schools, and showed three screenings of “An Inconvenient Truth.

The Windots Development, LLC was selected as the recipient of the Vincent D. George “Light the Way Award”. The award
ceremony was held on March 23 at the Department of Planning and Natural Resources. The annual award recognizes an
individual, business and/or organization that demonstrates or promotes the use of energy/renewable energy technology in
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VIRGIN ISLANDS

their home or business. The company was selected for their inclusion of energy efficient applications in their housing
development project located on St. Thomas. The award commemorates the life of a departed colleague.

The VIEO, for the 2nd consecutive year incorporated the Environmental Protection Agency, ENERGY STAR program’s
national “Change a Light Change the World” campaign into outreach activities. Residents were notified via the news media
and VIEO’s website to exchange an incandescent lamp for a compact fluorescent lamp; the office collected 150
incandescent lamps.

MEDIA CAMPAIGN Energy conservation and efficiency information was promoted via internet, audio and print media.
Radio hosts and newspaper journalists interviewed staff on numerous issues to include net-metering, global warming,
discretionary grants, the Junior Solar Sprint car races, and the rebate program. Staff executed two separate contracts for
two television commercials and four radio commercials as part of the marketing campaign to promote Virgin Islands
Energy Education Week.

As part of VIEO’s media marketing campaign, staff spoke on local radio shows, wrote editorials (to the local print media),
and placed Innovative Renewable Grant Program projects on its website; additionally energy efficiency tips will run in
select grocery stores throughout the Territory; DVDs containing energy efficiency information and wind energy were made
and distributed to the local media for airing on their stations.
The VIEO’s web page can be accessed at www.vienergy.org it provides updated information on energy activities in the
Territory as well as other applicable links. The website is updated biweekly. Based on VIEO’s monitoring of the webpage,
the site is proving to be a great resource for residents and others as the number of visitors to the site continue to climb.
Press releases were issued for the 2007 Rebate Program, Discretionary Grant Program, Tax Credits and the Adopt-a-
School activity.

The Media Information Specialist lead a discussion with local students concerning Global Warming. The discussion was
aired on the Virgin Islands PBS TV station.

The VIEO’s newsletter “Currents” was produced and disseminated as a print product once and is now being produced and
disseminated electronically. The email list grew to 900.

A television commercial was produced by the VIEO to show the importance of getting wind measurement before investing
in a wind turbine. Staff participated in television programs on the local Public Broadcasting Station, WTJX; Graffiti Street,
and School Daze.

JUNIOR SOLAR SPRINT The first leg of the 12th annual event took place on April 13th in the Sunny Isle Shopping
Center. Twenty eight teams (STX = 26 and STJ = 2) competed; each team typically consisted of two members. . Ten
businesses committed resources to co-sponsor the event as follows: HOVENSA, Quality Electric, Wendy’s Restaurant of
the VI, Hendricks International, Cruzan Rum LTD, Paradise Waste, Inc., Le Blue, Isle 95 Radio, West Indian Company
Limited, and Sustainable System and Design International.

DISCRETIONARY GRANT PROGRAM The Discretionary Grant Program (DGP) encourages and aims to expand EERE
projects through competitive grant-seeking proposals. The DGP seeks to fund EERE projects that benefit the entire
community, or a significant percent of the population. Funds will be awarded to selected proposals that include a cost-
share (in-kind or cash) of at least 20 percent of the grant amount requested. The DGP target population is not-for-profit
organizations, government agencies, schools, and institutions. Grants are available for Energy Research and Education,
and under the Energy Education Mini-Grant Program. Grant applications must demonstrate quantifiable energy savings or
innovation.
                                                                                                                   Page 159



VIRGIN ISLANDS

The DGP team reviewed applications for grants during the year; .among those awarded major grants were: Caribbean
Community Theater, Juan Luis Hospital, Public Defender’s Office, Department of Agriculture, and St. Croix Environmental
Association, each grantee was awarded $20,000 to implement
Mini grants to implement energy education programs were awarded as follows: the University of the Virgin Islands 4-H
Summer Enrichment programs.for a total of $3,000, (STX $1500 and STT $1,500), Elena Junior High School $1,500, John
H. Woodson Junior High School $1,500, and the Carabana Ensemble Theater, Co. Inc $600.

Antilles School completed the installation of photovoltaic panels was installed; they were the recipient of a major DPG
grant awarded in 2005 to implement a 2.5kw photovoltaic power integration system to provide electricity in the education
and research facility and it serves as learning tool for the students.

ADOPT A SCHOOL PROGRAM Grant award checks were presented to the Adopt-a-School participants during Energy
Awareness Month; Elena Christian Jr. High School and the Pearl B. Larsen Elementary School each received a check in
the amount of $22,500 to implement building retrofit initiative and purchase materials to incorporate an energy education
program into its curriculum. In an attempt to solicit participants in the St. Thomas/St. John district, staff made a
presentation to the school principals and provided information on other energy programs available to schools and the
benefits of the Adopt-A-School activity.

REBATE PROGRAM The objective of this very popular activity was met (to provide financial assistance to residents for
purchasing select ENERGY STAR and renewable energy products) as planned in this year’s state plan. This program
activity has once again proven to be a very successful initiative as residents throughout the Territory took advantage of the
available rebates, for renewables and appliances. The Energy Efficiency & Renewable Energy Rebate Program held its
kick off in October. Residents received instant rebates on compact fluorescent lamps and mail-in rebates for photovoltaic
panel, solar water heater, wind turbine generator, sine wave inverter, and electric water heater timer. A total of 661
applications in the amount of $268,732 were processed for the rebate program; renewable 112 applications for a pay out
of $120,470 and for the E-STAR 549 applications with a pay out of $148,261.

During this year’s program there were 23 rebate dealers in in the Territory strict (St. Thomas/St. John = 11 and St. Croix =
12).

The ENERGY STAR items eligible for rebate were, clothes washers, refrigerators, air-conditioners, fans, and CFLs. The
rebated amount for those items was 20% of the retail price.

INDUSTRIAL A Memorandum of Agreement between the Virgin Islands Waste Management of Authority (VIWMA) and
the VIEO was signed by the Governor of the United States Virgin Islands; as a result a notice to proceed was issued for
commencement of the project.

In Accordance with the MOU Phase I – the landfill gas feasibility study at the Bovoni Landfill on St Thomas commenced.
The initial report states that there is adequate landfill gas (1000 to 1500 cfm) available for recapture and eventual use as a
biofuel; initial calculations were made through the Land GEM model as issued by United States Environmental Protection
Agency (EPA); the calculations determined that the landfill was in excess of the design capacity that triggers the need for
the installation of a GCCS, the grantee (VIWMA) and the sub-contractor (McGuire Group) has agreed that a vertical gas
collection rather than a lateral gas collection system is the better option; the designs are 100% complete and have been
submitted to the Region II EPA’s Air Compliance Branch, for comment and final review The rate of expected extraction
coupled with the volume of gas anticipated would yield productive gas generation for at least a 16 year period. Further
work is continuing to select the appropriate equipment to convert the landfill gas to an alternative energy source. The first
payment in the amount of $48,000 was issued per the MOU. As part of this activity a quarterly reports were completed and
forwarded to the Southern States Energy Board, and a request for reimbursement in the amount of $48,000.
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VIRGIN ISLANDS

BUILDINGS Staff attended the 2007 Building Codes Conference in Pittsburg and networked with the Tropical Codes
partners in preparation for upgrading the Virgin Islands Energy Conservation Building Code. Staff researched questions
about local building habits pursuant to a request from the Tropical Codes project consultant; it included information on the
availability of ENERGY STAR appliances, rebates, taxes, etc. for consultant. Additionally, work towards setting up an
Advisory Committee, to include representatives of the Planning Office (Comprehensive and Coastal Zone Planning) to
meet in the first quarter of Fiscal Year 2008 was accomplished. Staff continues to work with the Tropical Codes team (PR,
Hawaii, Guam, and CNMI) and research applicable energy efficiency measures for incorporation in the energy building
codes and the development of a comprehensive energy plan for the Territory; dialog with the Southern States Energy
Board regarding efforts to develop a comprehensive energy strategy for the Territory was initiated this reporting.

UTILITIES Through a long fought battle the VIEO staff was instrumental in obtaining approval from the Public Services
Commission for the local utility company, the Virgin Islands Water and Power Authority to begin a net metering program in
the territory. The pilot program allows 10 megawatts (MW)of generating capacity territorially (5 MW’s for St.Thomas/St.
John/Water Island and 5 MW’s for St. Croix). The program is available to “certified residential and commercial customers
on a first-come first-served basis, who operates a solar photovoltaic, wind powered, or other renewable energy system
producing 10kw or les, and located and used at the customer’s primary legal residence or establishment where a part or
all of the electrical requirements of the customer can be supplied from the customer’s generating system.”

In an effort to ensure that the systems eligible for net metering comply with all applicable permits, engineering certification,
and fees, staff met with the Division of Permits staff and provided information and received guidance on the permitting
process for eligible renewable energy systems.

Six of the seven renewable technology systems funded through the competitive Innovative Renewable Grant Program
meet the Virgin Islands Water and Power Authority eligibility requirements for net metering; they are Bamboula Haven,
Mount Victory Campground, residential sites on St. Thomas at Southside Quarter, Raphune Hille, Estate Harmony and
Estate Fortuna. The site on St. John is at John Folly Institute.

TRANSPORTATION DEP and VIEO staff completed and submitted for legal review and a draft request for proposal (RFP)
for this initiative; to conduct a feasibility study to collect and convert used cooking oil and grease into a biodiesel product.
Due to the lengthy review process a grant extension request was submitted to US Environmental Protection Agency; the
extension was granted from September 2007 to September 2008.

Through a grant from VIEO, the Public Works Department (PWD) contracted with Lea & Elliott Inc to complete the
feasibility on the potential for park and ride, alternative fuel transit vehicles, and traffic signal priority; subcontractor/
consulting firm of Randolph Richardson & Associates was selected is schedule to commence work during the first quarter
for fiscal year 2008. The first payment in the amount of $37,000 was issued to the PWD.

SPECIAL PROJECTS Plans were made with the Puerto Rico Energy Office, Sandia National Laboratory, and NETL to
conduct Wind Energy workshops in the territory; the plan is for the event to take place during the 2nd quarter of fiscal year
2008.

The VIEO received approval to use the balance ($3,000.00) of the Wind Energy Case Study funds to purchase a
replacement data logger for this activity. A wind anemometer was loaned to a farmer located on the east end of St. Croix,
and a guest house business on St. Thomas to measure and collect wind data in each represented area.
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WASHINGTON

Washington Energy Policy Office
P.O. Box 43173
906 Columbia Street S.W.
Olympia, WA 98504-3173
Phone: 360.725.3118
Fax: 360.586.0049
Website: http://www.cted.wa.gov/


The State Energy Program (SEP) in Washington provides funding for the WA Department of Community, Trade and
Economic Development (CTED) Energy Policy Division and the Washington State University (WSU) Extension Energy
Program.

The SEP formula grant provides partial support for the CTED Energy Policy Division’s policy activities. These include
developing energy efficiency and renewable policies (tax incentives, net metering, biofuels development…); working with
the U.S. Department of Energy, WA State Emergency Management Division and the Governor’s office to prevent and
respond to petroleum, natural gas, and electricity emergencies; providing assistance to expand Washington’s clean
energy sector (renewables, efficiency, smart technologies, biofuels) and fostering market expansion nationally and
internationally for efficiency and renewable technologies, products and services.

We support development and growth of clean energy industries through technical assistance to energy companies, local
economic development agencies and international trade staff. We invest in industry development through market
research, incubation services, workshops and forums. The division works with companies and researchers to bring in
federal research and grant dollars.

We are actively involved in regional energy planning processes such as the Western Interstate Energy Board, Western
Interconnection Regional Advisory Board, Bonneville Power Administration, NW Power and Conservation Council, to
ensure our state has an efficient and diversified energy system. Our state is working with many partners to diversify our
energy, enable new technologies, to create a smarter energy grid and to incorporate technologies that will increase the
usefulness and reliability of our system.

We work with state agencies, universities, public and private organizations to identify and secure federal funds for
innovative projects and research that support state energy priorities. These include energy education, energy efficiency in
public buildings, improved energy codes, renewable energy, alternative fuel development, and economic development and
industrial competitiveness.

The WSU Energy Program’s energy specialists and professional engineers provide energy services, products and
information – both within Washington and nationally.

The nationally recognized WSU Energy Library offers research expertise and specialized services for its clients. It is
networked with libraries worldwide, and the collection is available online. The WSU Energy Library is partially supported
by SEP formula dollars.

The Resource Conservation Manager (RCM) program is a successful SEP project providing support for existing RCMs
and encouraging creation of RCM positions. RCMs are hired by public agencies such as schools, cities, or universities to
reduce operating costs, increase efficiency and promote environmentally friendly operations while reducing the costs of
energy, water, natural gas, and other utilities.
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WASHINGTON

SEP funds are also used for Building Technologies. Four Pacific Northwest states are bringing building techniques and
strategies developed and proven – under the Building America Program – into the region’s ENERGY STAR Homes
Programs, and making some ready for incorporation into the International Energy Conservation Code and the state codes
of Washington and Oregon.

The current focus of Industries of the Future (the EERE State Partnership Program) is helping industries make
significant energy investments – both in energy efficiency and combined heat and power projects – by facilitating technical
assistance, industrial efficiency trainings, and regulatory/policy support.

Rebuild America Program funding is providing support to the state’s Department of General Administration – as they
implement state mandates to build efficient, green, state-owned buildings.

                                                    SFY08 SEP Funds

                                         SEP Formula Grant                             $826,000

                                           Special Projects
                                    Distributed Energy Resources                        165,000
                                       Industries of the Future                          50,000

                                           Total for SFY08                           $1,041,000
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WEST VIRGINIA

West Virginia Energy Division
State Capitol Complex Building 6, Room 645
1900 Kanawha Boulevard East
Charleston, WV 25305
Phone: 304.558.2234
Fax: 304.558.0362
Website: http://www.energywv.org


                                         West Virginia Energy Programs
                     Supported through the U.S. Department of Energy’s State Energy Program

Industries of the Future—West Virginia: The IOF-WV program addresses energy efficiency in the state’s industries
including steel, aluminum, chemical/polymer, glass, metal-casting, wood products and mining. Since 1997, IOF-WV
projects have obtained $22,034,442 in competitively awarded federal and state funding and $10,802,335 in non-federal
cost share for a cumulative R&D value to the state of $32,836,777. IOF-WV is a Save Energy Now program partner.

Energy Assessment Program: The West Virginia University Industrial Assessment Center is contracted by the West
Virginia Division of Energy to provide industrial assessments to West Virginia industries below or above the energy
consumption criteria established by DOE. Assessments conducted in five plants in 2007 identified total savings of 116,990
MMBTU, valued at $1,168,037.

Lighting Demonstration Audit/Grant Program: This matching grant program assists local schools, governments and
nonprofit hospitals in updating their indoor lighting to more efficient technologies. In 2007, 11 organizations received
lighting audits with annual savings identified at $82,992 with an average ROI of 2.4 years. In 2006 six grants for lighting
upgrades totaling approximately $68,000 were awarded.

Building Energy Use Center: With the support of the West Virginia Division of Energy, West Virginia University Institute
of Technology and West Virginia University faculty provide energy assessments and technical assistance to county school
systems. The centers began a pilot demonstration program in 2007 working with five county school systems. The centers
have begun benchmarking all schools in each selected county using the ENERGY STAR Portfolio Manager Program.

West Virginia ENERGY STAR® Program: The West Virginia. Division of Energy promotes residential energy efficiency
through its Web site at www.energywv.org by providing an online home energy audit, energy saving tips and a store
locator to find places that sell ENERGY STAR products. In 2007, the division sponsored billboards in 25 statewide
locations that promote the Change-A-Light campaign, as well as an ENERGY STAR information sheet in all of the state’s
major newspapers.

West Virginia Clean State Program: This program, the state’s Clean Cities coalition, advances alternative fuels and
vehicles in West Virginia. Activities to date have included the sponsorship of the first West Virginia Friends of Biodiesel
conference. The Clean Air Forum was published in partnership with the W.Va. Department of Environmental Protection to
highlight the state’s alternative fuel activity. Roughly one-half of West Virginia county school systems use biodiesel. To
date, there are three announced biodiesel production facilities in West Virginia

Energy Summit: Advancing Domestic Resources in an era of Carbon Challenges: The conference, sponsored by the
West Virginia Governor’s Office, the West Virginia Department of Commerce, the West Virginia Division of Energy and the
Southern States Energy Board, featured presentations on energy independence, carbon challenges, alternate fuels and
coal resources. Four state governors and seven governors’ energy advisers participated in the summit, which drew more
than 200 participants.
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WEST VIRGINIA

West Virginia Energy Opportunities Document: The West Virginia Division of Energy developed the West Virginia
Energy Opportunities Document, the state energy plan in response to a legislative mandate. The plan promotes increased
energy efficiency, traditional fossil energy forms and renewable energy to provide energy independence from foreign oil
imports by the year 2030. The plan outlines opportunities to displace 1.4 billion gallons of foreign petroleum products used
annually in West Virginia. The plan also provides a BTU analysis of energy efficiency, renewable energy and fossil energy
opportunities.
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WISCONSIN

Wisconsin Office of Energy Independence
17 West Main Street, #429
Madison, WI 53702
Phone: 608.261.6609
Fax: 608.261.8427
Website: http://power.wisconsin.gov/\


Office of Energy Independence
Governor Jim Doyle set a bold strategy for Wisconsin that will reduce our dependence on foreign oil, lower greenhouse
gases and create economic opportunities. Governor Doyle reorganized the Wisconsin Energy Office through Executive
Order 192 to create the Office of Energy Independence (OEI). The mission of OEI is to generate 25% of Wisconsin’s
electricity and transportation fuels from renewable resources by 2025, capture 10% of the emerging bioindustry and
renewable energy market by 2030, and to facilitate leadership in groundbreaking research that will make renewable
energy more affordable and will create good paying Wisconsin jobs.


                                                         $69 Million

                                                Wisconsin Public Benefits Fund




                                                        $15 Million

                                              Wisconsin Energy Independence
                                                          Fund




                                                     SEP Funding

                                                       $967,000




OEI staff members serve as a single point of contact for businesses, local units of government and NGOs pursuing bio
development, energy efficiency, and energy independence while also developing energy policy options for the Governor.
Work at OEI is funded by the U.S. Department of Energy State Energy Program (SEP) and state match.

Building on Our Strengths
Over the past decade, Wisconsin has worked to develop robust funding sources for energy projects. Due to the important
work of staff funded by SEP dollars, Wisconsin created the Public Benefits Fund to support the Focus on Energy program.
This program provides $69 million a year in energy efficiency resources to eligible Wisconsin homes and businesses. Its
efforts help Wisconsin residents and businesses manage rising energy costs, promote in-state economic development,
protect our environment and moderate the state's demand for electricity and natural gas.

Wisconsin is now focused on the creation of an equally robust renewable energy program. OEI staff work collaboratively
with Wisconsin business, industry, and local units of government to identify opportunities for greater energy independence.
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WISCONSIN

Public Benefits              Annual kWh Saved                   Annual kW Saved                Annual Therm Saved
July 1, 2006 – June 30, 2007
Total Saved                  248,727,112                        42,051                         15,561,780
Business                     157,983,071                        33,635                         13,319,734
Residential                  81,365,729                         6,729                          1,524,927
Renewable                    9,378,311                          1,688                          717,119

Through this work, staff drafted policy recommendations that resulted in the creation of an Energy Independence Fund
which will ultimately grow to a $150 million investment.

State as a Leader
OEI staff members, in coordination with Wisconsin State Facilities and State Fleet, are improving energy conservation and
renewable energy use within state government. Staff are developing plans to reduce overall energy use per square foot in
state buildings by at least 10% by FY08 and 20% by 2010. In summer 07, OEI staff facilitated a complete re-lamp of
incandescent light bulbs in the Wisconsin Capitol to compact fluorescent light bulbs.

By spring 2008, Wisconsin government will purchase 20% of the energy for the six largest state agencies from renewable
sources.

OEI is collaborating with fleet management to establish procedures for all state agencies to reduce the use of petroleum-
based gasoline in state-owned vehicles by 20% by 2010 and by 50% by 2015 through increased use of E-85, and to
reduce the use of petroleum-based diesel fuel by 10% by 2010 and 25% by 2015 through the use of biodiesel.

Sector Strategies
Biomass Market Development
OEI anticipates using $200,000 from 2007 SEP funding to create a Biomass Market Development program. OEI staff will
work to develop a biomass market exchange and to pilot biomass aggregation utilizing regional utility and agricultural
cooperative partners. These programs will lay the groundwork for development of a 15 million ton per year Wisconsin
biomass program. Wisconsin plans to utilize biomass as a substitute for coal in electricity generation.

Cheese
OEI and Focus on Energy partnered to decrease the cost of doing business for cheese producers. We provided energy
audits to Wisconsin cheese processors and identified energy efficiency savings for facilities. Many facilities were well
suited for renewable energy investment in the form of biomass boilers or anaerobic digesters. Wisconsin is home to 21
anaerobic dairy digesters, more than any other state. This initiative also identified a 12 million gallon per year biodiesel
market through milk haulers’ use of the fuel. Staff members are working to implement this initiative.

Alternative Fuels
SEP funds historically facilitated the installation of 65 E85 and 14 biodiesel pumps in Wisconsin to date. Staff time was
instrumental in organizing the biodiesel industry in Wisconsin and in the
development a biodiesel trade organization. The $281,000 SEP Special Project E85
Grant funding leveraged a $5,000 tax credit in the Wisconsin 2007-2009 budget for
E85 or Biodiesel pump installation.

Midwest Collaboration
As Chair of the Midwestern Governors Association, Governor Doyle hosted the
2007 MGA Energy Security & Climate Stewardship Summit. This landmark event
                                                                                                                Page 167



WISCONSIN

brought together 7 Midwestern states to pledge to increase their use of renewable energy and to take steps to lower their
greenhouse gas emissions. OEI Staff helped to make this event successful.

Energy Information
The annual Wisconsin Energy Statistics has been published by the state energy office since 1976 providing information on
state energy use and expenditures by fuel type and sector. In 2006, total energy use per $1,000 of Gross State Product
decreased almost 4% to reach a record low, documenting Wisconsin’s efforts to become more energy efficient.

Throughout the winter, OEI tracks heating oil, propane, and natural gas prices and supplies. OEI makes this information
publicly available through the website and press releases.

OEI is updating its Energy Assurance Plan using $39,000 of SEP funds to hire a consultant to advise and guide OEI
during the production of this plan.
Page 169



WYOMING

Wyoming Business Council
214 West 15th Street
Cheyenne, WY 82002-0240
Phone: 307.777.2800
Fax: 307.777.2837
Website: http://www.wyomingbusiness.org/business/energy.aspx


Wyoming Energy Conservation Improvement Program
The Wyoming Energy Conservation Improvement Program (WYECIP) is a performance-contracting-based program for
energy conservation in public and private non-profit facility owners such as state agencies, local governments, schools,
colleges, hospital and nursing homes. The State energy office has prequalified ten energy service companies (ESCo’s)
under the program and manages the process of implementing performance contracts for the facility owners. Two high-
profile facility owners, Teton County where Jackson Hole is located and the City of Cheyenne, as well as a variety of other
local governments and colleges have signed up for the program. It has proven to be an innovative method for local
governments to fund energy conservation measures in both new and existing facilities.

Anemometer Loan Program
From its start with a purchase of two 50M anemometer towers purchased with a Wind Power America Omnibus grant, the
anemometer loan program has grown to a fleet of nine 50M towers and two 30M towers. Fourteen sites have been tested
under the program and several of the landowners have signed development agreements.

Residential Photovoltaic Grant Program
Since its inception, the Residential Photovoltaic Grant Program has provided matching grants for 139 residential
photovoltaic installations totaling at least 80 kw. It has proven so successful that the next round of grants will be awarded
through a lottery.

Small Business Energy Audit Program
The Small Business Energy Audit Grant Program has helped a variety of businesses improve their energy efficiency. The
energy audits have been, or will be, conducted for a ranch, a guest ranch, small manufacturers, a hotel, a cabinet shop, an
ice plant, a grocery store and others.

Home Performance with ENERGY STAR
The pilot program for HPw/EStar in southeast Wyoming qualified six contractors under the program. The program will be
expanded into northeast Wyoming which will cover nearly half the population of the State.

Energy Hog
The State energy office partnered with two investor-owned utilities to have Alliance to Save Energy visit schools through
out eastern Wyoming with Energy Hog program.

				
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