1. American Recovery and Reinvestment Act of 2009 Public Affairs Roundtable Breakfast June 4, 2009 One Commerce Plaza Albany, New York 12260 P 518.487.7600 F 581.487.7777 www.woh.com Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

2. Bridges and Roads  Federal legislation authorized $27.5 billion for highway infrastructure improvements  New York’s share was $1.12 billion  Most of the funding then distributed through NYSDOT’s standard allocation process Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

3. Bridges and Roads, cont’d.  Grants for Transportation Investment Generating Economic Recovery (TIGER)  Discretionary program administered by USDOT Secretary  Can be used for highway and bridge projects, public transportation projects, passenger and freight rail projects  Minimum project size is $20 million, max is $300 million  Grant applications due by September 15, 2009 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

4.  Criteria for projects  Long-term outcomes  Job creation and economic stimulus  Innovation  Partnership  Applications will need to include analysis of costs/benefits, job creation, shovel-readiness, etc.  Priority given to projects that can be completed by February 17, 2012 Bridges and Roads, cont’d. Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

5. Sewer and Water  Federal legislation authorized $6.4 billion in clean water funding  New York received over $500 million for the Clean Water and Drinking Water Revolving Funds  Most funding allocated by position on the Intended Use Plan Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

6. Sewer and Water, cont’d.  Future funding of projects on Intended Use Plan may get easier  Natural Resources Conservation Service (NRCS) - technical assistance for watershed projects  USDA’s Rural Utilities Service – grants and loans for municipalities of less than $10,000 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

7. Sewer and Water, cont’d.  Clean Water Act Section 604(b) projects  Eligible applicants include regional public planning organizations (including interstate organizations)  Priorities  Green infrastructure  Total Maximum Daily Load planning  Phase II Stormwater for Municipal Separate Storm Sewer Systems (MS4s) and construction planning activities  Water quality management planning activities  Application due July 10, 2009 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

8. Broadband Access  Broadband Technology Opportunity Program  Federal legislation authorized $4.7 billion  Funding being distributed by the U.S. Department of Commerce: National Telecommunications and Information Administration (NTIA)  Eligible entities  State or political subdivision  Non–profit foundations, corporations, institutions, or associations, or any other entity in the public interest  First Round Grant RFP to be issued in June Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

9. Broadband Access, cont’d.  Rural Utilities Service - Distance Learning, Telemedicine & Broadband Program  Federal legislation authorized $2.5 billion  Program to be administered by the Rural Utilities Service (USDA)  Eligible Applicants:  Public and private entities who provide telephone or broadband services in rural areas  75% of the area to be served is in a rural area with insufficient access to high speed broadband service  Being implemented in cooperation with NTIA; no RFPs issued or application deadlines set Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

10. Housing and Urban Development  Neighborhood Stabilization Program  $2 billion allocated in Act  Funds being distributed by HUD  Goals  Establish financing mechanisms for purchase and redevelopment of foreclosed homes  Purchase and rehabilitate homes and residential properties abandoned or foreclosed  Establish land banks for foreclosed homes  Demolish blighted structures Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

11. HUD, cont’d.  Neighborhood Stabilization Plan, cont’d.  Eligibility: States, local governments, non-profits  Recipients have flexibility in developing programs and funding priorities, but 25% must be used for purchase and redevelopment of abandoned or foreclosed homes for low to moderate income persons  Application due date: July 17, 2009 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

12. HUD, cont’d.  Green Retrofit Program for Multifamily Housing  Federal legislation authorized $250 million  Estimated $85 million for grants  Estimated $150 million for loans  Estimated $15 million for training, monitoring, etc.  HUD’s Office of Affordable Housing Preservation is distributing funds Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

13. HUD, cont’d.  Green Retrofit Program for Multifamily Housing, cont’d.  Eligible Applicants for Grants or Loans  Owners of Section 202 projects (32 unit minimum)  Owners of Section 811 projects (8 unit minimum)  Owners of Section 8 projects (20 units if it has USDA loans, and 72 units without)  Other owners may be eligible for loans only Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

14. HUD, cont’d.  Green Retrofit Program for Multifamily Housing, cont’d.  Intent of grants/loans are to allow owners to make retrofits to improve building efficiency  Expected award is up to $15,000 per unit  Applications accepted beginning 6/15, awards granted on first-come, first-served basis (subject to HUD due diligence/financial analysis) Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

15. HUD, cont’d.  Public Housing Capital Fund  Federal legislation authorized $4 billion  $3 billion allocated by formula  $1 billion awarded by competition  Funds being allocated by HUD’s Office of Public and Indian Housing  Applications accepted from 6/1 to 7/21 or from 6/1 to 8/18 depending on category Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

16. HUD, cont’d.  Public Housing Capital Fund, cont’d.  Eligible Applicants  Public Housing Agencies  Own or operate low-income public housing  Funding categories  Addressing needs of elderly or disabled  Public Housing Transformation  Gap Financing for Stalled Projects  Energy Efficient, Green Communities Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

17. Economic Development Assistance Progr am  $150 Million allocated to this Program  Funds being distributed by the U.S. Commerce Department (Economic Development Administration) Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

18. Economic Development Assistance Program, cont’d.  Program goal: To provide economic stimulus to regions that have experienced sudden and severe economic dislocation and job loss  Provides funding for construction or rehabilitation of essential public infrastructure and facilities, and develop regionally focused economic recovery and growth strategies  50% cost sharing requirement (may be satisfied by in-kind contributions) Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

19.  Eligible Applicants  State, city, or other political subdivisions  Regional organizations  Institutions of higher education  Must meet certain “economic distress criteria”  Unemployment rate 1% higher than National average  Per capita income 80% or less of National average  “Special Need” community Economic Development Assistance Program, cont’d. Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

20. Clean Fleets  Alternative Fuel and Advanced Technology Vehicles Pilot Program  Federal legislation authorized $300 million  Program being administered by DOE  Reimburses grantee for incremental cost to purchase new alternative fuel vehicles  Award size expected to be between $5 million and $15 million per project Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

21. Clean Fleets, cont’d.  Alternative Fuel and Advanced Technology Vehicles Pilot Program, cont’d  Eligible Applicants  State or Local Governments  Metropolitan Transportation Authority  50% cost share required  Selection criteria: petroleum reduction, emissions reductions, ease of implementation  Applications due September 30, 2009 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

22. Weatherization  $5 billion authorized for weatherization projects under the Act  New York share: $394.6 million  Being distributed through existing Weatherization Assistance Program (WAP)  DHCR receives funds, distributes to its network of subgrantees for implementation  Eligibility: Any household at 200% of federal poverty guideline; up to $6,500 per home Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

23. Websites  http://recovery.ny.gov http://recovery.ny.gov  http://www.recovery.gov http://www.recovery.gov Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

24. Peter Trimarchi, Esq. Whiteman Osterman & Hanna LLP (518) 487-7688 ptrimarchi@woh.com Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

25. Stimulus Funding for Energy and Energy Efficiency Public Affairs Roundtable Breakfast June 4, 2009 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

26. ARRA Tax Credits  Treasury Grants instead of Production Tax Credits for projects where construction started in 2009 or 2010  Temporarily replaces tax equity market that has disappeared  Makes deal simpler  Decreases financing costs  Three year extension of the Production Tax Credit (PTC) for wind facilities placed in service by 12/31/12; and geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities placed in service by 12/31/13 (solar already extended in last congress) Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

27. ARRA Tax Credits  Investment Tax Credit (ITC) expanded from wind and solar to geothermal, biomass, hydropower, landfill gas, waste-to-energy and marine facilities  Advance Energy Manufacturing ITC (30% up to $2.3 billion) for investment in advanced energy manufacturing  Extends the bonus depreciation of 50% that Congress enacted last year through 2009. These write offs can be applied to capital expenditures ranging from $250,000 to a newly increased threshold of $800,000 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

28. ARRA Direct Spending  $16.8 billion Total Direct Spending for Renewable Energy and Energy Efficiency programs over next ten years  $11 billion to modernize the nation's electricity grid with smart grid technology  $2.5 billion for renewable energy and energy efficiency R&D, demonstration and deployment activities  $2 billion for grants for the manufacturing of advanced batteries and components. This includes the manufacturing of advanced lithium ion batteries, hybrid electrical systems, component manufacturers, and soft-ware designers  $300 million to the DOD for research, testing and evaluation of projects to energy generation, transmission and efficiency  $100 million for Navy and Marine Corps facilities to fund energy efficiency and alternative energy projects. Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

29. ARRA Bond and Loan  $1.6 billion of new clean energy renewable bonds (CREBS) to finance wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities  One third of the authorized funding will be available for qualifying projects of state/local/tribal governments, one-third for public power providers and one-third for electric cooperatives  $6 billion temporary loan guarantee program for renewable energy power generation and transmission projects that begin construction by 9/30/11  up to $500 million of the overall $6 billion can be used for the development of leading edge biofuels that have been demonstrated and have commercial promise to substantially reduce greenhouse gas emissions  expected to create over $60 billion in private financing Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

30. NYSERDA NYSERDA Funding System Benefit Charge Renewable Portfolio Standard Renewable Green House Gas Initiative ARRA Block Grant Funding Energy Star State Energy Plan Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

31. NYSERDA’s Role  $123mm to fund state energy plan (SEP), which means funding for:  increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government;  reduce reliance on imported energy;  improve the reliability of electricity and fuel supply and the delivery of energy services; and  reduce the impacts of energy production and use on the environment. Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

32. NYSERDA’s Role Con’t  More specifically, activities carried out and results achieved with SEP ARRA funding will be assessed according to the following performance metrics:  Jobs created  Energy saved (kWh/therms/gallons/Btus/etc.)  Renewable energy installed capacity and generated  GHG emissions reduced (CO 2 equivalent)  Energy cost savings  Funds leveraged  Funds will be made available through a competitive bid program through NYSERDA  See http://www.nyserda.org/Economicrecovery/sep.asp for more info.http://www.nyserda.org/Economicrecovery/sep.asp Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

33. NYSERDA’s Role Con’t  Energy Efficiency and Conservation Block Grants  $175,122,300  $17,856,360 to NYSERDA small municipalities  $11,904,240 to NYSERDA all municipalities  $23,739,000 to 10 largest count  $121,622,700 to 44 large cities/towns  Large city, county, and tribal organization applications due to DOE by 6/25/09  NYSERDA will solicit applications for projects from small municipalities following DOE approval of Plan Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

34. NYSERDA Role Con’t  Energy Efficiency Appliance Rebate Program and the ENERGY STAR® Program - $300,000,000  Pending issuance of funding opportunity by DOE  NYSERDA will receive funds from DOE and structure program for distribution  Electricity Delivery and Energy Reliability – $4,500,000,000, New York State Share from competitive grants to be determined  DOE issued FOA for Synchrophasor Research on 3/27/09; applications due on 5/27/09  DOE issued Notice of Intent to issue funding opportunity for Smart Grid Investment Grant Program on 4/16/09; applications available on 6/17/09; applications due on 7/29/09 Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

35. Division of Housing and Community Renewal  Weatherization  New York received $98.8 million in regular program funding for the 2009-2010 Program Year. This amount included $36.6 million in DOE funds and $62.2 million of new HEAP funds.  The ARRA will provide an additional $394,686,513 in DOE program funds.  Distributed to counties by formula.  http://www.dhcr.state.ny.us/Publications/Weatherizati onRecoveryActFundingPlan/Weath_ARRA_Plan.pdf http://www.dhcr.state.ny.us/Publications/Weatherizati onRecoveryActFundingPlan/Weath_ARRA_Plan.pdf Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

36. Renewable Energy Provisions American Recovery and Reinvestment Act of 2009  Helpful websites:  http://www.recovery.ny.gov/ http://www.recovery.ny.gov/  http://www.nyserda.org/pdfs/EconomicStimulusFunding.pdf http://www.nyserda.org/pdfs/EconomicStimulusFunding.pdf  http://www.nyserda.org/economicrecovery/default.asp http://www.nyserda.org/economicrecovery/default.asp  The full text of the tax provisions in the stimulus package can be found here.  http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf  The full text of the appropriation provisions in the stimulus package can be found here.  http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.

37. Catherine Hill, Esq. Whiteman Osterman & Hanna LLP (518) 487-7728 chill@woh.com Copyright ©2009 Whiteman Osterman & Hanna LLP. All rights reserved.