American Recovery and Reinvestment Act EmPOWERing Marylanders Walt Auburn, Director of Energy Efficiency Maryland Energy Administration March 18, 2009

ARRA – Key Features Focus is on Energy Efficiency and Renewable Energy Create or save jobs Funding to expand existing programs or create new programs ARRA shall not supplant or replace existing state, ratepayer or other funding. State assurances for energy codes (current IECC and ASHRAE ) and decoupling

Maryland’s Portion of ARRA Energy Investments Maryland Funding : $51.8M- Maryland Energy Administration (MEA) $61.4M- Weatherization Programs (DHCD) $50M+ - Energy Efficiency and Conservation Block Grants Billions more available through Department of Energy (DOE) competitions.

ARRA – State Energy Program (SEP) – Managed by MEA $52 M for EE and RE programs (less administration and EM&V EE -- $33 M – will complement utility programs RE -- $19 M will expand residential renewable and production strategies

ARRA – EE and C Block Grant Program $3.2B to improve energy efficiency via local governments $400M allocated via competition 68% of funds directly allocated by DOE to larger cities and counties (top10) 16% via MEA to small pop. counties & towns (approx. = $14 M) 12% to MEA for state energy program admin. (approx. = $12 M)

ARRA – Residential Appliance Rebates $300 M available nationally EPACT 2005 (sec 124) indicates funds go through state energy office – rebate amounts determined by energy office Can be used to supplement existing rebate programs but not supplant DOE will likely set the list of the Energy Star appliances covered

ARRA – Smart Grid Funding – $4.5B nationally –all competitive Purpose – regional demonstrations & storage demos Who can apply/process – utilities & other parties– up to 50% match from DOE When –DOE will issue details soon

ARRA – Smart Grid Regional Demonstrations – quantify costs & benefits, verify technology viability and validate business models Utility-Scale Energy Storage Demos – verify storage technologies Synchrophasor Demos – network-base applications of time-synchronized phasor measurement technologies

ARRA – Existing Homes Homeowner Tax Credits EPACT guidelines Details – 30% of cost up to $1500 one time tax credit – building shell, HVAC, window cost (installation issue)

Lowering Bills and Creating Jobs Through Energy Efficiency MEA proposes to invest in - Multi-Family housing retrofits special focus on low/moderate income families –direct install Revolving, low interest loans for residential customers Commercial/Industrial/Farm energy efficiency loans and incentives State agency loan program Green job training

Multi-Family Housing Retrofits - MEA Energy efficiency retrofits in 2000 plus units Reduce energy bills for Maryland families Coordination with DHCD, housing nonprofits and utilities throughout the state Energy savings will typically range from 15% to 25% per housing unit or complex Reduction of monthly energy bills for thousands of families Creation of 100 or more energy rehabilitation jobs. Will leverage utility prescription and custom programs

Residential/Commercial/Industrial Revolving Energy Efficiency Loans Low interest loans to Maryland families and businesses for energy efficiency upgrades. Address up-front costs associated with energy efficiency investments Complement local, state and utility programs to ensure Marylanders invest in energy efficiency in the Commercial and Industrial sectors ( below market-rate revolving loans) By structuring the program as revolving loans, additional Maryland families and businesses will be able to benefit in the years to come.

State Agency Loans Program Expand existing State Agency Loan Program Provides zero interest loans to state agencies. Since 1991, the program has issued 61 loans totaling $16,535,262. The estimated annual savings of these loans to taxpayers is currently $2,757,000 Cumulative savings of $20,186,000.

Green Job Training and Technical Assistance Build on Success of Home Performance program – Already trained 124 retrofitters with 240 more on wait list Provide training to assist green businesses Will soon sign MOU with community colleges to dramatically expand training (memorandum of understanding) Qualifying businesses must support energy efficiency and/or renewable initiatives in the State Partner with Maryland’s Clean Energy Center and Governor’s Workforce Investment Board Provide technical, business and entrepreneurial training. Host job fairs to attract potential energy workers.

Lowering Bills and Creating Jobs Through Renewable Energy MEA proposes to invest in Residential renewable energy systems Alternative transportation fuel and infrastructure Revolving loans for residential and small commercial renewable projects Economic development incentives to attract manufacturers and generators to the State

Residential Renewable Energy Grants 335 Maryland households still remain on wait list for: Solar grants Geothermal grants Residential wind grants, MEA plans to use the stimulus funds for the families on the current waitlists. ARRA funds will also help an additional 1,000+ households put renewable systems in/on their homes. This is in addition to funds from the Strategic Energy Investment Fund.

Alternative Transportation Fuel and Infrastructure Grants Promote energy independence thru bio-fuels, electric hybrids, and/or infrastructure projects. Expand FY08 initiatives which provided: 3 biodiesel production facilities with a capacity of 5.5 million gallons annually 8 grants for biodiesel and E85 pumps will have a monthly through put of 80,000 gallons 2 biodiesel terminal grants are expected to have a 2 million gallon annual through put capacity.

For more information, please contact: Maryland Energy Administration or ENERGY Handouts are excerpts from: National Governors’ Associationwww.nga.orgNASEO Alliance to Save Energywww.asg.org