Stimulus funding from Uncle Sam (blog.bioethics.net).

The American Recovery and Reinvestment or Stimulus Act appropriated $3.1 billion to the Department of Energy (DOE) State Energy Program (SEP) to enable energy efficiency and clean energy deployment across the country. U.S. DOE Secretary Steven Chu announced last week more than $162 million of this funding will be directed towards energy efficiency and renewable energy projects in Colorado, Delaware, Indiana, Louisiana, Massachusetts, Pennsylvania, and Puerto Rico. Under the DOE's SEP, states and territories have proposed statewide plans that emphasize energy savings, stimulate or retain jobs, increase the use of clean, alternative energy, and decrease greenhouse gas emissions. 

In specific, activities eligible for SEP funding include energy audits, Green building renovation, education and training efforts, public transportation programs to increase the use of alternative fuels and hybrid vehicles, and new financing options to promote energy efficiency and renewable energy investments. States are authorized to use these grants at the state and local level to create Green jobs and address state energy issues. 

The Stimulus package will provide states and territories with 40% of their total SEP funding, which will constitute 50% of total funds granted thus far under the legislation. The initial 10% installment of total funding was previously offered to states to support planning activities; the remaining 50% of funds will be released once states meet reporting and accountability measures required by the Stimulus Act.
Of course, transparency and accountability are critical issues for the SEP and all Green Stimulus projects in order for them to be effective and to survive public ridicule. Therefore, the DOE will provide oversight at the local, state, and national level, while emphasizing a timely funding process that creates new employment opportunities at small businesses and large companies, which consequently stimulates local economies. 

Nearly $200 million in federal Stimulus money will be granted to Arizona for initiating a clean energy economy, as it ranks fairly low on this scale amidst its high potential. 

On March 26, the U.S. Department of Energy announced that Arizona would receive $63.8 million from the Energy Efficiency and Conservation Block Grant program, which provides grant money to the state, local governments and tribal communities- whom unfortunately are not always included in these discussions. The DOE stated that the money would accompany $57 million for the Weatherization Assistance Program and another $55.4 million for the SEP previously announced. In general, the states have a great deal of liberty on how to spend the money, since the federal government provides broad guidelines. In Arizona, the money will be administered through the state Department of Commerce, and Gov. Jan Brewer will set the agenda and priorities for its distribution. 

The block grant program provides grants for energy efficiency programs and the reduction of total energy consumption and fossil fuel emissions. It is expected that funds will be dedicated to Green construction retrofits of residential, commercial, and government buildings such as energy-efficient solid state lighting and renewable energy installations, public transportation, and efforts to capture greenhouse gas emissions from landfills. In addition, solid state lighting installation programs for traffic lights will be considered along with other similar programs. Taiwan has been considering a Stimulus plan on a much larger scale particularly emphasizing solid state lighting applications and developing the necessary domestic supply chain to meet the demand. As an aside, the total potential market for major Green renovations in the commercial building sector is approximately $400 billion, according to a new study by Pike Research.  

Moreover, the block grant money will be distributed to tens of geographic regions across the state, which will have jurisdiction over its own $9.5 million. First and foremost, the most populated area of Phoenix will receive $15.2 million; some other areas will receive: $5.1 million - Tucson, $4.2 million - Mesa, $3.9 million - Pima County, and $3.5 million - Maricopa County. However, each respective government office must apply to the DOE for the Stimulus funding, but they will have significant latitude on how to spend the money. 

Under the Weatherization Assistance Program, Arizona families who earn up to 200% of the federal poverty level, which is approximately $44,000 a year for a family of four, will be eligible for up to $6,500 per home for energy-efficiency upgrades such as enhanced installation and windows, as well as ENERGY STAR appliances. DOE studies have shown that the program can assist homeowners in reducing their heating bills by an average of 32%. Also, the SEP will even offer rebates to homeowners for audits or consulting services to determine how to improve energy efficiency and cost savings. 

What’s more, the Department of Veterans Affairs (VA) is targeting nearly one-quarter of its $1.4 billion in funds from the Stimulus Act for investments in clean energy generation and energy conservation. The VA Department will direct more than $68 million to renewable sources, including solar, wind and geothermal energy and has dedicated nearly $238 million toward retrofitting existing buildings to use energy and water more efficiently, including solar-powered electricity and hot water systems at VA hospitals in Arizona. 

Amidst the freedom and flexibility of states to utilize Green Stimulus money, it is in their own best interests to choose projects that will have a long-lasting positive impact on the economy and create the most jobs and commerce. Many companies and local citizens, stymied by the recession, are unaware of the opportunities at hand to capitalize on Stimulus funding geared toward generating a Green Revolution and clean energy economy. However, many other countries such as China, Taiwan, and South Korea are executing similar tactics in order to stimulate their economy; thus, the U.S. needs to effectively administer related programs not to fall behind in the race for clean energy technological innovation and market share.

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For more info: Energy Stimulus tracking website- http://www.energy.gov/recovery/index.htm