Overview of the "Energy Efficiency and Conservation Block Grant Program"

MEMORANDUM - March 2, 2009
From: Senator Bernie Sanders’ Office
Re: The Energy Efficiency and Conservation Block Grant Program (EECBG)


The American Recovery and Reinvestment Act of 2009 (ARRA) provides a significant amount of funding directly to states and municipalities through the EECBG to help them address the following objectives:
(1)    Reduce fossil fuel emissions;
(2)    Reduce total energy use; and
(3)    Improve energy efficiency in the transportation, building, and other appropriate sectors

ARRA provides $3.2 Billion in national funding for EECBG, to be divided as follows:
•    $1.9 Billion to be distributed by formula to “eligible local governments” through the Department of Energy
•    $784 Million to be distributed by formula to states
•    $56 Million for a national competitive grant program to be administered by DOE that will give priority to small states (with populations of less than 2 million)
•    $400 Million for a national competitive grant program to be administered by DOE

Funding and Eligibility Breakdown for VT:
•    DOE will make a direct allocation to each of the 10 highest-populated cities/towns in VT
•    DOE may make a direct allocation to each of the 10 highest-populated counties in VT
•    DOE will make a direct allocation to the State of VT, which will be required to pass not less than 60% of its block grant funding to local governments that are not slated to receive formula funding directly from DOE.
•    All VT communities that did not receive a formula allocation from DOE or the State of VT may be eligible to apply for funding through one of the national competitive grant programs; at least one of these programs will give priority to small states like VT

(On March 26,2009 Senator Sanders announced the dollar figure for this program - More than $10.3 million for Vermont energy efficiency and conservation projects under this program)

DOE is working to publish guidance regarding how they will administer the program and provide specific instructions on how to apply for funding. As of this writing, DOE has yet to come up with a formula for any of the funds described above. As a result, we do not yet know the exact funding levels for cities and towns.

KEY POINTS:
•    MUNICIPAL LEADERS IN COMMUNITIES THAT ARE LIKELY TO RECEIVE FUNDING SHOULD BEGIN PLANNING NOW. This includes generating project ideas, assessing costs, and determining priorities so you are ready to use the funds effectively and quickly when they are disbursed.
•    Any VT community that wants to pursue energy efficiency and renewable energy projects should begin planning now. Even if you do not receive a direct allocation from DOE or the State of VT, this will still enable you to prepare a stronger application to submit for national competitive funding.
•    Block grant funds can be used in many different ways including: conducting energy audits; funding energy efficiency improvements; energy efficiency retrofits; developing infrastructure like bike lanes, pedestrian paths, etc; landfill gas; energy efficient street lighting (such as LEDs); renewable energy installations on government buildings; and much, much more.

For further information and updates on the EECBG program, you should consult the the DOE website or call 1-877-337-3463.

You may also contact Kelly Lucci in Senator Bernie Sanders’ Burlington office by calling: 1-800-339-9834 or via email at: kelly_lucci@sanders.senate.gov.