Trish Jerman

1
South Carolina Energy Stimulus Provision Overview

• Trish Jerman
• May 8, 2009

2
S.C. Energy Office Mission

• To increase energy efficiency and diversity,
  enhance environmental quality and save energy
  dollars for South Carolina.

3
History 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

4
Programs

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

5
Stimulus funding overview
Competitive Tax incentives Formula funding
6
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

7
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

8
Energy Retrofit and Green Investments (HUD)

• 250 Million
• Grants and loans for HUD owners and purchasers to
  use sustainable Green Building Principles
• http//www.hud.gov/recovery/aheretrofith.cfm

9
DOE Office of Electricity Delivery and Energy
Reliability

• 80 Million to conduct resource assessment and
  analysis of future demand and transmission
  requirements
• Renewable Energy and the Grid

10
Energy Conservation Bonds

• 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
  projectsinstead 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

11
Advanced Research Projects Agency(ARPA-E)

• 400 Million
• Supports high-risk, high-payoff research into
  energy sources and energy efficiency in
  collaboration with industry

12
Loan Guarantees for Innovative Technology

• 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/

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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 RD - 3.4B
• Uranium enrichment, decontamination and
  decommissioning - 390M
• Energy science research - 1.6B

14
Tax Incentives

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

15
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

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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 intuitivecheck the list!

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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

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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)

19
Tax Credits

• Manufacturers Tax Credit for Clean Energy
  Products
• establish, re-equip, or expand manufacturing
  facilities for variety of clean energy products
• 30 credit

20
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.)

21
Energy Efficiency and Conservation Block Grant
Program
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Energy Efficiency and Conservation Block Grants

• 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.

23
Energy Efficiency and Conservation 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/recove
  ry)

24
Allocations 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

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Allocations for 10 largest counties

• 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

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Energy Efficiency and Conservation Block Grants

• 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.

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Energy Efficiency and Conservation Block Grants

• 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.

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5.75 Million Competitive Allocation
COG Dollars Share Population
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
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State Energy Program
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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.

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State 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
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State Energy Program

• 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 Governors Office of Economic
  Opportunity (OEO) and utilities
• 3 million - Industrial incentives
• 50,000 - Small business/Utility equipment loan
  program

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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

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Further Questions?

• www.energy.sc.gov
• www.energy.gov/recovery
• South Carolina Energy Office
• 408 Wade Hampton Building
• Columbia, S.C. 29201
• [phone]
• tjerman_at_energy.sc.gov