Trish Jerman May 8, 2009 South Carolina Energy Stimulus Provision Overview

Trish Jerman May 8, 2009

South Carolina Energy Stimulus Provision Overview

S.C. Energy Office MissionS.C. Energy Office Mission

To increase energy efficiency and diversity, enhance environmental quality and save

energy dollars for South Carolina.

History of SCEOHistory of SCEO

Initially established in 1973 Formally constituted into law by the S.C.

Energy Conservation and Efficiency Act of 1992

Now an office of the State Budget and Control Board

ProgramsPrograms Transportation Alternatives Renewable Energy Energy Efficiency Energy Education and Outreach Radioactive Waste Disposal Energy Planning and Forecasting

Stimulus funding overview

Competitive

Tax incentives

Formula funding

Competitive Funding Competitive Funding

Competitive funds◦ Diesel Emission Reduction Act (DERA) – EPA

Four grants submitted DOT Diesel oxidation 3 engine repowers of locomotives for S C Railroad

Commission 2 Truck stop electrification sites on I-85 & I-95

◦ Clean Cities - $300 M May 29 SC and NC joint proposal ($10/$5) 400 propane vehicle conversions 20 E85 and B20 stations several CNG fueling stations and conversions biodiesel distribution equipment (in 6 of 7 non-attainment

areas) infrastructure for plug-in hybrids in Greenville, Columbia

Competitive Funding ◦ Additional biofuel funding coming soon◦ Additional wind funding coming soon

◦ Appalachian Regional Commission Energy Efficiency for Schools

Due June 30 $250,000/max $45,000 50% match Installing renewable energy and energy efficiency equipment

in K-12 schools in Appalachia, support for implementation of associated science, environment and business curricula in classroom

Anderson, Cherokee, Greenville, Oconee, Pickens & Spartanburg

Can match federal funds

$250 Million

Grants and loans for HUD owners and purchasers to use sustainable Green Building Principles

http://www.hud.gov/recovery/aheretrofith.cfm

$80 Million to conduct resource assessment and analysis of future demand and transmission requirements

Renewable Energy and the Grid

$2.4 billion

Finances state, municipal and tribal government programs and initiatives used to reduce green house gas emissions

Provides interest free financing for clean energy projects—instead of paying interest, these tax credit bonds pay the bondholder by providing a credit against their federal income tax

Can be used for Green Community Programs

$400 Million Supports high-risk, high-payoff research into

energy sources and energy efficiency in collaboration with industry

$6 Billion

Loan guarantees for renewable energy, electric transmission technologies, or leading-edge biofuel technologies

Principal purpose of this program is to encourage early commercial use of new or significantly improved technologies

http://www.lgprogram.energy.gov/

Competitive Funding ◦ Transportaton Electrification – $400 M

(geared toward manufacturers) ◦ Manufacturing of advanced batteries - $2B◦ Smart Grid - $4.5B

Some interest among SC utilities

◦ Fossil energy R&D - $3.4B◦ Uranium enrichment, decontamination and

decommissioning - $390M◦ Energy science research - $1.6B

Tax Incentives Tax Incentives

About $7 billion allocated for home energy efficiency, home renewable energy, alternative vehicles, and renewable energy manufacturing and investment.

Tax Credits Renewable Energy Tax Credit (Residential) 30% tax credit for residential applications

of: ◦ Solar Water Heat, Photovoltaics, Wind, Fuel Cells,

Geothermal Heat Pumps, Other Solar Electric Technologies

Applicable to dwelling unit located in the U.S. used as a residence by the taxpayer◦ Fuel cell credit only for primary residence, other

applications may be primary or second home Can be carried forward to next tax year Program extended until 2016

Tax Credits

Plug-in Electric Drive Vehicle Credit◦ Expands and extends existing credit

Alternative Refueling Property ◦ Expands credit from 30% to 50% for next 2

years Energy-Efficient Improvements to

Existing Homes ◦ Extends credit to 2010◦ Aggregate cap of $1500◦ Limit of 30% ◦ Covered items not intuitive—check the list!

Tax Credits Repeal Subsidized Energy Financing

Limitation on the Investment Tax Credit Removal of Dollar Limitations on Certain

Energy Credits ◦ Uncapped 30% credit for solar, small wind,

geothermal Permanent Sequestration Requirement

to CO2 Capture Tax Credit Parity for Transit Benefits

◦ Equalizes benefits for parking and transit

Tax Credits Advanced Energy Investment Credit

◦ 30% investment tax credit for manufacture of advanced energy property

Extend the Production Tax Credits for Renewable Energy

◦ Wind through 2012, others through 2013 Election of Investment Credit in lieu

of Production Tax Credits (30%) Election of Grants for Specified

Energy Property in lieu of Tax Credits (30%)

Tax Credits Manufacturer’s Tax Credit for Clean

Energy Products ◦ establish, re-equip, or expand manufacturing

facilities for variety of clean energy products◦ 30% credit

Formula Funding

◦ SEP - $3.1B ($50M for S.C.)◦ Weatherization Assistance Program - $5B

($58.8M for S.C.)◦ Energy Efficiency and Conservation Block

Grants - $2.8B ($31M for S.C.)◦ Worker training - $3.95B ($64M for S.C.)◦ ENERGY STAR appliance rebate program -

$300M (estimated $4.5M for S.C.)

Energy Efficiency and Conservation Block Grant Program

$400 million in competitive funds to be available directly to local and tribal governments to support energy efficiency and conservation and renewable energy in government facilities.

Department of Energy guidelines have not yet been issued.

Energy Efficiency and Energy Efficiency and Conservation Block GrantsConservation Block Grants

Around $22 million available directly to 10 most populous cities and counties in state, plus the Catawba Indian Tribe ($173,900).

Complete list of allocations on the following slides.

These entities must submit their plans for their direct EECBG allocations to the U.S. Department of Energy by June 25, 2009. (www.energy.gov/recovery)


Allocations for 10 largest citiesAllocations for 10 largest cities

Charleston City - $1,138,700 Columbia City - $1,424,100 Goose Creek City - $153,600 Greenville City - $743,400 Mount Pleasant City - $593,700 North Charleston City - $978,500 Rock Hill City - $630,600 Spartanburg City - $192,900 Summerville City - $185,600 Sumter City - $179,400

Allocations for 10 largest Allocations for 10 largest countiescounties

Aiken County - $646,100 Anderson County - $751,200 Beaufort County - $636,000 Florence County - $572,300 Greenville County - $3,435,400 Horry County - $2,400,800 Lexington County - $2,268,600 Richland County - $2,116,800 Spartanburg County - $2,221,800 York County - $586,200

$5.75 million in competitive grants also will be available through the South Carolina Energy Office via COGs to cities/counties not in the list of 10 largest.

SCEO ConserFund Revolving Loan Program can be used to supplement grants (3% interest rate) and will be considered leveraged (non-federal) funds.

Jurisdictions should apply directly to COGs.


Emphasis on ROI, economic development impact and job creation.

Applications from COGs available on or before May 31, 2009, with the deadline for submission tentatively September 1, 2009.


$5.75 Million Competitive Allocation$5.75 Million Competitive Allocation

COG Dollars SharePopulation

Appalachian $841,338 14.6% 240,771

Berkeley-Charleston-Dorchester

$990,491 17.2% 283,455

Catawba $467,174 8.1% 467,174

Central Midlands $213,037 3.7% 60,966

Lowcountry $286,767 5.0% 82,066

Lower Savannah $536,841 9.3% 153,631

Pee Dee $709,395 12.3% 203,012

Santee Lynches $615,491 10.7% 176,139

Upper Savannah $760,297 13.2% 217,579

Waccamaw $335,269 5.8% 95,946

Totals$5.75 million

100% 1,647,259

State Energy Program

South Carolina – $40 Million in formula funding (75% grant, 25% loan).

Will be used for energy-saving projects for school districts, public colleges and universities, and state agencies.

Funding allocated based on size of energy bill.

Applications are tentatively due on September 1, 2009.

State Energy ProgramState Energy Program


Total Allocation

Grant (75%)

Loan (25%)

School Districts

$20.36 million

$15.27 million

$5.09 million

Public Higher Ed

$12.22 million

$9.16 million

$3.05 million

State Agencies

$7.42 million

$5.56 million

$1.85 million

Additional funds to be allocated for:◦ $3 million - Renewable energy grants (non-profits

to be eligible)◦ $3 million - Residential energy evaluation and

assessment Partnership with Governor’s Office of Economic

Opportunity (OEO) and utilities◦ $3 million - Industrial incentives◦ $50,000 - Small business/Utility equipment loan

program


State Energy Program ◦ $1 million Training

South Carolina Energy Efficiency Training Collaborative (partnership between OEO, S.C. Dept. of Commerce, S.C. Technical College System, South Carolina Energy Office, and utilities)

HERS, BPI assessment and core competencies, industrial and institutional auditing, renewable technicians

www.energy.sc.govwww.energy.gov/recovery

South Carolina Energy Office408 Wade Hampton BuildingColumbia, S.C. 29201(803) [email protected]

Documents

Trish Jerman May 8, 2009 South Carolina Energy Stimulus Provision Overview