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March 2009
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National Energy Market News
1. How the American Recovery and Reinvestment Act Affects the Energy Services Industry - ARRA provides significant new funding for energy efficiency as a key element of future growth and prosperity. NAESCO www.naesco.org advocacy has resulted in some great new market opportunities and provides a significant first step in a major federal commitment to energy efficiency. Highlights of the Act include the following:
R $3.1 billion for the State Energy Program (SEP), which provides grants and funding to state energy offices for energy efficiency and renewable energy programs;
R $3.2 billion for an energy efficiency and conservation block grant program to assist local governments in implementing energy efficiency and conservation programs;
R $3.6 billion for Department of Defense energy efficiency projects and modernization of facilities;
R $5 billion for low-income Weatherization programs;
R $4.5 billion to GSA for measures to convert GSA facilities to High-Performance Green Buildings;
R $400 million to establish the Office of Federal High Performance Green Buildings;
R $4.5 billion for the Smart Grid Investment Program;
R $500 million for jobs training for careers in energy efficiency and renewable energy industries;
R $9.75 billion for modernization, renovation or repair of schools and colleges;
R $1 billion to fund energy efficiency improvements in public housing including investments that leverage private sector funding; and,
R $2.25 billion for improvements and energy efficiency in federally assisted housing (e.g., HUD Section 8).
To read a summary of the provisions of the Act that was produced by the Alliance to Save Energy: http://www.naesco.org/policy/federal/2009-02-13-Economic_Recovery_Side_by_Side_1239.pdf
2. DOE to Expedite Disbursement of Funds Received via Stimulus Act - Energy Secretary Steven Chu has announced a sweeping restructuring of DOE's processes for issuing direct loans, loan guarantees, and other funds to expedite the disbursement of the DOE funds received via the American Recovery and Reinvestment Act (ARRA). DOE will streamline and simplify loan application forms and other paperwork and will begin reviewing applications as they are received, rather than waiting until an application deadline. DOE will begin offering loan guarantees established by the ARRA by early summer and plans to disburse 70% of the ARRA funds by the end of 2010. To reduce the up-front costs of the loans, DOE will offer applicants the opportunity to pay the fees at closing and will also restructure credit subsidies so that they are paid over the life of the loan. DOE will also draw on outside partners to accelerate loan underwriting. 02/25 EERE
3. Economic Stimulus Act Provides $16.8 Billion for EERE Programs - An unprecedented $16.8 billion of the American Recovery and Reinvestment Act will be appropriated for the Department of Energy's Office of Efficiency and Renewable Energy (EERE) programs and initiatives. After passing both houses of Congress and going to a joint Senate-House Conference Committee, the final appropriations include:
R $5 billion for the Weatherization Assistance Program
R $3.1 billion for the State Energy Program
R $3.2 billion for Energy Efficiency and Conservation Block Grants
R $2.5 billion for Applied Research, Development, Demonstration and Deployment including:
o $800 million for Biomass
o $400 million for Geothermal
o $50 million for Information and Communications technology
R $2 billion for Advanced Battery Manufacturing Grants
R $400 million for Transportation Electrification
R $300 million for an Energy Efficient Appliance Rebate Program and ENERGY STAR®
R $300 million for an Alternative Fueled-Vehicles Pilot Grant Program 02/17 EERE
4. American Recovery and Reinvestment Act (H.R. 1)...Where is Your Money Going? Recovery.gov is now live. The first incarnation of Recovery.gov features projections for how, when, and where the funds will be spent -- which states and sectors of the economy are due to receive what proportion of the funds. As money starts to flow, far more data will become available.
5. President Obama Calls for Carbon Cap, More Clean Energy Investment - Naming energy as one of the three areas of investment "that are absolutely critical to our economic future," President Obama called last night for a greater investment in clean energy technologies and a cap on carbon emissions. President Obama declared that "it is time for America to lead again." He also noted that the ARRA will double the U.S. supply of renewable energy in the next three years. 02/25 EERE
6. EERE Network News - EERE's newsletter, the EERE Network News, covers national and international energy efficiency and renewable energy news and events, as well as new EERE Web sites and energy facts. http://apps1.eere.energy.gov/news/enn.cfm
Economic Stimulus Act Provides $16.8 Billion for EERE Programs
The DOE Office of Energy Efficiency and Renewable Energy (EERE) will receive a nearly ten-fold increase in funding through the American Recovery and Reinvestment Act of 2009, which President Barack Obama signed on February 17. Most of the added funds will support state and local clean energy projects.
Renewable Energy and Smart Grids Spurred by Economic Stimulus Act
The American Recovery and Reinvestment Act of 2009 provides enough funding to guarantee $60 billion in loans for renewable energy and electric transmission projects, and it also provides funding for smart grid initiatives and loans for federal transmission system expansions in the West.
Economic Stimulus Act to Result in Greener Federal Buildings and Fleets
The U.S. General Services Administration (GSA) will receive $4.5 billion under the American Recovery and Reinvestment Act of 2009 to convert existing federal buildings into high-performance green buildings. The GSA will also garner $300 million to purchase greener vehicles for federal fleets.
High-Speed Rail and Transit Boosted by Economic Stimulus Act
The American Recovery and Reinvestment Act of 2009 provides $8 billion to support high-speed rail corridors and intercity passenger rail service. The act also provides nearly $10 billion for transit systems in general.
Economic Stimulus Act Extends Renewable Energy Tax Credits
The American Recovery and Reinvestment Act of 2009 provides a three-year extension of the production tax credit for most renewable energy facilities, while allowing alternate methods to take advantage of that incentive. The act also expands business tax credits for renewable energy.
7. Federal Stimulus Package Generates Praise and Questions - The $787 billion federal stimulus package offers four significant tax provisions that will affect businesses said Neil Becourtney:
R a $400 tax credit, and generally $800 for married couples, subject to certain income limitations…..businesses are likely to be affected because the IRS is suggesting that the tax credit may be delivered as a reduction in employee’s withholding, although details have not yet been released.
R it will extend, through the end of 2009, a federal bonus depreciation rule that lets businesses write off [against income] up to half the cost of certain assets they acquire this year.
R the so-called Section 179 write-off, named after a section of the Internal Revenue Code, also has been extended……under this provision, a company can write off up to $250,000 of certain assets, subject to certain limits, in the year of acquisition, instead of depreciating the assets over a longer period.
R another provision will let companies carry back losses, or use them to offset prior-year gains, for up to five years……..currently, the limit is two years. 02/18 NJBIZ
8. Stimulus Bill Increases Rewards for Energy-Efficient Remodeling - The stimulus bill includes incentives aimed at encouraging homeowners to invest in energy-efficient technology and products. Among the highlights is a 30 percent tax credit for homeowners who install energy-efficient windows, insulation or heating systems in 2009 and 2010. The maximum credit value is $1,500. Previously, the tax credit was 10 percent, with a $500 cap. 03/02 Winston-Salem Journal
9. Green Building Projected for 245% Growth from 2009 to 2013 - Despite the economic downturn and a slowing in overall construction, continued strong growth is expected for the U.S. Green Building Market. The combined Green Construction total for C & I and Residential is projected to reach over $128 billion by 2013 – an increase of 245% over 2009 expenditures. 03/03 TEDGreenRoom
10. 
Is Green for Real? As the chart here reveals, 48 percent of the respondents to the HCN
Green Email Survey either agree or strongly agree that green is an area of
increasing profits for their company -- three times the percentage who
disagree. Overall, the numbers reflect a feeling that green products,
sustainable products and products and services that conserve energy are areas
of increasing importance. By channel, the most agreement to the statement about
growing profitability came from hardware stores -- 57 percent agreed, including
20 percent who agreed strongly. Distributors were the least likely to agree --
40 percent, including 13 percent who agreed strongly. The data also revealed
some skepticism for the green movement in general, most notably: 64 percent
agreed that green products have a limited appeal to most consumers, without a
clear cost-saving benefit. 02/10 HCN
11. The Largest Energy Savings Project in History - When the DOE revises energy efficiency standards for lamps, it has a chance to dramatically reduce electricity demand. DOE recently released the Notice of Proposed Rulemaking for general service fluorescent (GSFL) and incandescent reflector lamps (IRL). The DOE proposal is posted at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/incandescent_lamps_nopr.html.
12. DOE Might Make Pending Appliance Standards 'More Aggressive' - The Energy Department is considering a stiffening of pending federal energy-efficiency standards for appliances, Energy Secretary Steven Chu said today. "I am going to be looking at those because I have become more convinced that they are not as aggressive as they could be," Chu said at a conference held by the ASE. "So we will look at making them more aggressive." Chu did not list any specific pending standards that may be toughened. According to the nonprofit Appliance Standards Awareness Project, DOE's deadlines call for final rules this month for ranges and ovens and commercial clothes washers, with final standards for multiple types of lamps due in June. The group argues that strong standards for fluorescent tube light bulbs and reflector light bulbs could save enough kilowatt-hours by 2020 to meet the needs of 5 million households. But the group and other efficiency advocates have argued that a Bush administration proposal in January was weak. 03/04 NY Times
13. EPA Unveils Top 25 U.S. Cities with the Most Energy Star Buildings - The U.S. Environmental Protection Agency today released a list of U.S. metropolitan areas with the largest number of energy efficient buildings in 2008 that have earned EPA's Energy Star. The list is headed by Los Angeles, San Francisco, Houston, Washington, D.C., Dallas-Fort Worth, Chicago, Denver, Minneapolis-St Paul, Atlanta and Seattle. Energy Star buildings typically use 35 percent less energy and emit 35 percent less greenhouse gases than average buildings. The total for Energy Star qualifying buildings and plants in America is now more than 6,200 with overall annual utility savings of more than $1.7 billion. To view a list of Energy Star buildings and plants, including those in the 2008 Top 25 Cities: http://energystar.gov/buildinglist
14. Earth Hour to Turn Out City's Lights - You've heard of Earth Day, but what about Earth Hour? Earth Hour is a global effort to get as many people as possible to turn off their lights for an hour, which will take place at 8:30 p.m. on March 28 this year. The program began in Sydney, Australia, in 2007 and is supported by the World Wildlife Fund. Last year, 50 million people in 400 cities across the globe reportedly participated, and this year, organizers hope to get 800 cities on board. 03/05 The Brunswick News, Ga.
15. Qualifying Advanced Energy Project Investment Tax Credit - The American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009, established a new investment tax credit to encourage the development of a U.S.-based renewable energy manufacturing sector. In any taxable year, the investment tax credit is equal to 30% of the qualified investment required for an advanced energy project that establishes, re-equips or expands a manufacturing facility that produces any of the following:
R Equipment and/or technologies used to produced energy from the sun, wind, geothermal or "other" renewable resources
R Fuel cells, microturbines or energy-storage systems for use with electric or hybrid-electric motor vehicles
R Equipment used to refine or blend renewable fuels
R Equipment and/or technologies to produce energy-conservation technologies (including energy-conserving lighting technologies and smart grid technologies) http://www.dsireusa.org
16. Obama’s Backing Raises Hopes for Climate Pact - Until recently, the idea that the world’s most powerful nations might come together to tackle global warming seemed an environmentalist’s pipe dream. The Kyoto Protocol, signed in 1997, was widely viewed as badly flawed. Many countries that signed the accord lagged far behind their targets in curbing carbon dioxide emissions. The United States refused even to ratify it. And the treaty gave a pass to major emitters in the developing world like China and India. But within weeks of taking office, President Obama has radically shifted the global equation, placing the United States at the forefront of the international climate effort and raising hopes that an effective international accord might be possible. Mr. Obama’s chief climate negotiator, Todd Stern, said last week that the United States would be involved in the negotiation of a new treaty — to be signed in Copenhagen in December. 03/01 NY Times
17. Google PowerMeter - See Your Electricity Usage Online - Google will announce its entry into the small but growing business of “smart grid,” digital technologies that seek to both keep the electrical system on an even keel and reduce electrical energy consumption. Google is one of a number of companies devising ways to control the demand for electric power as an alternative to building more power plants. The company has developed a free Web service www.google.org/powermeter called PowerMeter that consumers can use to track energy use in their house or business as it is consumed. Google is counting on others to build devices to feed data into PowerMeter technology. While it hopes to begin introducing the service in the next few months, it has not yet lined up hardware manufacturers. http://energybusinessdaily.com/power/google-powermeter-seeing-your-electricity-usage-online/ 02/29 NY Times
18. State of Green Business 2009 -In the second annual State of Green Business report, Joel Makower and the editors of GreenBiz.com answer the question: How are U.S. businesses doing in their quest to be more environmentally responsible? Read the report online http://www.greenbiz.com/stateofgreenbusiness/html
19. 
DOE
Solid-State Lighting Manufacturing Workshop April 21-22, 2009 Fairfax, VA - Successful market introduction of solid-state lighting
products will depend on having consistent, high-quality products at reasonable
costs. To achieve these goals, the U.S. Department of Energy (DOE) is hosting a
Solid-State Lighting Manufacturing Workshop to examine underlying issues
related to materials, equipment, process control, and other factors that
influence product quality and cost. Coming Soon – Registration and hotel information. http://www1.eere.energy.gov/buildings/ssl/fairfax09.html
20. Fourth-Quarter 2008 Lighting Systems Index Reaches Ten-Year Low - According to the National Lighting Bureau (NLB), just-released NEMA Lighting Systems Index data reveal fourth-quarter-2008 lighting-equipment shipments to be the lowest in the Index’ history. In its latest tumble, the Index contracted 4.8 percent from the third quarter to the fourth, resulting in a year-over-year decline of 11.2 percent. Established in 1998, the NEMA Lighting Systems Index is a composite measure of lamps, luminaires, ballasts, emergency lighting, exit signs, and other lighting products shipped nationally and internationally from the United States by the 450 companies that comprise the National Electrical Manufacturers Association (NEMA), one of the NLB’s founding sponsors. The value of NEMA members’ annual shipments totals $100 billion. The Index uses 2002 data for its 100-point benchmark; fourth-quarter 2008 performance receded to the 87-point level.
http://nlb.org/index.cfm?cdid=10571&pid=10237
21. 
The
Green Scene by Jim Lucy, Chief Editor, Electrical Wholesaling 02/’09 -
Here are 25 great green ideas to help you sell more electrical
products. The idea of energy efficiency as a sales opportunity for electrical
wholesalers dates back to the gas crisis in the 1970s. But over the years,
surprisingly few electrical distributors have made it a top priority. With
lighting products accounting for at least 25 percent of their total sales,
distributors have sold their share of energy-efficient products. But few
companies have positioned themselves as the go-to guys and gals for the supply
of energy-efficient products in their local market areas. The electrical
distributors that have made the investment in the green market have quietly
made a good living at it. http://ewweb.com/
State Energy Market News
22. PSE&G Details Solar Panel Plan - New Jersey's largest utility on Tuesday announced an ambitious plan to install solar panels on 200,000 utility poles. Public Service Electric & Gas also seeks to place the panels on schools, municipal buildings, low-income housing and closed garbage dumps. PSE&G expects to spend $773 million to generate 120 megawatts of electricity. That amounts to barely 1 percent of the power consumed in the Garden State. 02/11 NJBIZ
23. Atlantic City Electric Plans Energy-Efficiency Programs - The latest filing, which must be approved by the New Jersey Board of Public Utilities, is part of a larger initiative that each of the state's utilities is undertaking to help stimulate the economy with infrastructure upgrades and create "green jobs." Among Atlantic City Electric's proposals is: An investment program designed to assist larger commercial and industrial customers in installing high-efficiency equipment. www.atlanticcityelectric.com 02/25 NJBIZ
24. Governor Rendell Says PA Making Energy Efficiency Upgrades More Affordable, Saving Consumers Money - Pennsylvania is stepping up its efforts to help more families cut their energy bills. The Governor said the new, $17 million Keystone HELP Energy Efficiency Loan and Rebate Program will make it easier for families to insulate their homes, seal off drafts, or install things like high-efficiency heating and cooling systems, geothermal heat pumps, and ENERGY STAR-qualified windows and doors. The program, made possible by the $650 million Alternative Energy Investment Fund legislation Governor Rendell signed in July, is an expansion of the Keystone Home Energy Loan Program, or Keystone HELP, that was created in 2006 by the Pennsylvania Treasury Department to offer affordable energy efficiency financing options. For more information on the Keystone HELP Energy Efficiency Loan and Rebate Program, visit www.keystonehelp.com. For more information on funding programs through the Alternative Energy Investment Fund, visit www.depweb.state.pa.us and click on the "Fueling Energy Savings" icon.
25. Pittsburgh and San Jose Looking at LEDs for Street Lighting - Pittsburgh is considering the replacement of its 40,000 street lights with LED fixtures, according to a news report in the Pittsburgh Post-Gazette. Next month the city expects to invite firms to submit ideas for a pilot transformation of some portion of the city's street light system to one of several available technologies, including LED, although other efficient technologies have not been ruled out. Meanwhile in California, San Jose is looking to replace its 62,000 streetlights with new LED versions that will “cast a white, warm glow, could cut energy costs in half, and will use state-of-the-art technology to vary their intensity and timing,” according to the Mercury News. http://ledsmagazine.com/news/6/2/8
26. Feds’ Energy Rules Will Hit Georgia Hard - Georgia simply doesn’t have the wind, solar or biomass resources required to meet proposed new federal regulations for renewable energy generation, Georgia Public Service Commissioner Stan Wise told members of Congress on Thursday. As a result, Georgians’ electricity bills would rise by as much as 25 percent and billions in taxpayer money would flow out of Georgia to import renewable energy from other states or to pay for government-sponsored credits to offset proposed renewable goals, Wise warned members of a House energy subcommittee. 02/27 Atlanta Journal-Constitution
27. Schools Could Turn Green From Stimulus Money - As the state's second public school received official recognition for its innovative, energy-saving design Thursday, the rest of Arkansas' public school system stands to reap some of the same benefits through stimulus funding. Gov. Mike Beebe has said he intends to use some federal stimulus money to make school buildings more energy-efficient. Nothing will be certain until after federal guidelines are drawn in ink and each state knows how much of the $77 billion set aside for education will arrive. The energy office - which expects at least $37 million from the stimulus package - is working with Beebe and has been talking with the Department of Education about retrofits. 03/05 AP
28. Consumers Energy Moving Forward on Energy Efficiency; Invites Companies to Submit Bids for Start of $500 Million Program - Consumers Energy www.consumersenergy.com is inviting companies to submit bids to participate in the start of a $500 million program to help Michigan residents and businesses use energy more efficiently and save on their energy bill. This is one of the largest energy efficiency efforts in the state's history and is expected to create hundreds of jobs. These positions would be in energy auditing, equipment installation and pickup, engineering, education, and administrative. In addition, numerous contractors are expected to add employees to install additional high efficiency electrical and mechanical upgrades that will be incented through the energy efficiency programs. These upgrades include such items as furnaces, air conditioning, lighting and hot water heaters. Consumers Energy expects to begin offering energy efficiency programs to customers in July. 03/03 PRNewswire
29. DTE Energy Proposes Renewable Energy and Energy Efficiency Programs - DTE Energy has filed renewable energy and energy optimization proposals with the Michigan Public Service Commission that would significantly increase the amount of renewable energy generated in the state and establish broad-based energy efficiency programs for DTE Energy customers. Public Act 295, which was passed by the Michigan legislature last October, calls for the state's electric utilities to serve 10 percent of their retail sales with renewable energy by 2015. Commercial and industrial customers would receive incentives for constructing energy efficient buildings and installing energy efficient equipment and controls. www.dteenergy.com 03/5 PRNewswire
30. WPPI Energy Offers Revolving Loan Fund - WPPI Energy, Sun Prairie, is offering its member communities a $10 million revolving loan fund for projects that will improve energy efficiency or use renewable energy on municipal-owned property. Communities can borrow up to $500,000 at zero interest over a 10-year period for projects that may involve building upgrades, LED street lights, using more efficient fleet vehicles or installing solar panels. WPPI provides electricity to 49 municipal electric utilities, primarily in Wisconsin, but also in Michigan and Iowa. 03/05 The Wisconsin State Journal
31. L.A. to Green Streetlights in the Largest LED Retrofit to Date - Los Angeles’ 140,000 streetlight fixtures will be replaced with LED units over the next five years with help from the Clinton Climate Initiative in the most extensive municipal green lighting retrofit thus far. The upgraded lighting system is expected to save the city $48 million in energy and maintenance costs and cut carbon emissions by 197,000 tons over a seven-year period. The cost savings accrued during that time are to pay for a loan that will fund the project, according to the initiative. The actual price tag for the retrofit was not disclosed, however. Los Angeles' broader green lighting and energy efficiency program includes a giveaway of two compact fluorescent light bulbs to each of the 1.2 million households in the city http://www.ladwp.com/ladwp/cms/ladwp011614.jsp 02/19 GreenBuildings.com
Special Feature… Obama’s 2010 Budget Highlights by Agency - 02/27 AP:
Available details of President Barack Obama's proposed government spending for the 2010 budget year that begins on Oct. 1. In most cases, the figures are for discretionary spending and do not include mandatory entitlement programs like Social Security. The percentage change is based on what Obama wants to spend next year compared with what he anticipates the government will spend in 2009 once Congress completes appropriations for this year. A more extensive budget outline is expected in April.
R Health and Human Services - $821.7 billion ($78.7 billion for discretionary spending, plus $453 billion for Medicare and $290 billion for Medicaid)…7.5 percent increase. The government's gargantuan health insurance programs for the elderly and poor would grow more slowly under Obama's proposed health care budget.
R Environmental Protection Agency - $10.5 billion…34.6 percent increase. This budget signaled that the environment is a priority by providing the biggest increase for the Environmental Protection Agency in eight years.
R Housing and Urban Development - $47.5 billion…18.5 percent increase. Proposed spending is more to house the poor and invest in poverty-stricken neighborhoods.
R Education - $46.7 billion…12.8 percent increase. A huge expansion of the government's role in making college more affordable and putting it within reach of more kids.
R Agriculture - $26 billion…8.8 percent increase. Big farms that receive large government subsidies would lose some of that money under Obama's budget.
R Defense - $533.7 billion…4 percent increase. War spending (addition to annual budget): $130 billion for 2010, $75.5 billion for 2009. Obama wants only a modest increase in defense spending for 2010.
R Energy - $26.3 billion…0.4 percent decrease. A dramatic shift away from support for fossil fuels to new "green" energy is at the core of Obama's first proposed budget. Compared to the Bush budget, it proposes a major redirection of spending to reflect Obama's strong support for renewable energy and away from fossil fuels. The first budget wallops the oil and gas industry by eliminating $31.5 billion in tax breaks.
R Veterans Affairs - $52.5 billion…10 percent increase. A Veterans Affairs budget that takes a step toward expanding health care access to non-disabled veterans whose incomes exceed about $30,000 annually.
R Transportation - $72.5 billion…2.8 percent increase. The transportation budget would make a $5 billion installment payment on his campaign promise to build a national network of high-speed passenger trains.
R Labor - $13.3 billion…4.7 percent increase. The Labor Department would get more money to boost enforcement of workplace health, safety and wage laws under Obama's budget.
R Justice - $23.9 billion…6.3 percent decrease. The Obama administration's first budget sought to keep a campaign promise to put 50,000 more police officers on the streets, as cash-strapped police departments are looking to trim costs.
R Homeland Security - $42.7 billion…1.2 percent increase. Air travelers likely would have to pay more in three years to have their shoes inspected at airports under the Obama administration spending proposal.
R Interior - $12 billion…6.2 percent increase. The nation's public lands would produce cleaner energy and brace for global warming's effects on their plants and wildlife under Obama's budget.
R NASA - $18.7 billion…5.1 percent increase. The Obama administration would continue plans to retire space shuttles in 2010 and use the savings to return astronauts to the moon by 2020.
R Commerce - $13.8 billion…48 percent increase. Nearly all of the huge spending increase Obama wants for the Commerce Department goes to the massive job of conducting the 2010 census.
R State and other foreign affairs operations - $51.7 billion…9.5 percent increase after $10.5 billion in supplemental non-military funding for Afghanistan and Pakistan was added to the initial $36.7 billion 2009 estimate. The proposal included money to meet the president's campaign pledge to double foreign aid and boost counter-terrorism and non-military assistance to Pakistan and Afghanistan.