Energy efficient lightbulb
The Energy Independence and Security Act of 2007 developed a program to allocate federal funds for energy savings entitled Energy Efficiency and Conservation Block Grants. The Obama Administration expanded this program, increasing available funding through the American Recovery and Reinvestment Act (ARRA) of 2009, while maintaining strict eligibility requirements.
Background
The 2007 Security Act intended funds to be used to achieve local-level energy efficiency goals for public buildings and public transportation, permitting funds to be used for design, operations, redevelopment of building codes, synchronization of traffic signals, and pilot programs testing the effectiveness of solar, wind, fuel and biomass energy sources.
Features
ARRA made $3.2 billion available to U.S. states, counties, cities, tribes and territories. Only government entities received funding and allocations were based upon population size and job losses. While the Security Act intended energy efficiency to be a subset of a comprehensive energy policy that included fossil fuels, ARRA expanded the program to include workforce training to conduct energy audits and create green jobs.
Time Frame
Each entity receiving funds had to allocate some funds through formula grants and other funds through competitive bid processes. Most of the formulas were allocated by late 2009, early 2010 and competitive bids have already been received for ARRA funding, with project decisions pending. Thus, ARRA funding will be exhausted by the end of 2011, but other funding can always continue through annual appropriation bills.
Benefits
HVAC equipment used in large buildings.
Ohio, a state with high manufacturing job losses during the recession, received $8.2 million under the program. Ohio's City of Athens used $362,000 to replace HVAC systems and motors at a waste-water treatment plant; the City of Kent spent $501,517 to upgrade HVAC and automation systems (including vending machines) at 10 city buildings. The State of Colorado was one of few that instituted a rebate program to cover, albeit partially, purchase and installation costs of renewable energy generating equipment for homeowners and businesses.
Expert Insight
According to research conducted in preparation for the International Online Conference's "How Online Education Gets Green Jobs", most of the Block Grant funding has already been allocated and spent as of May 2010. Schools, government offices and public housing all received funds to improve heating and cooling efficiency. Short-term jobs were created for contractors and future energy costs are expected to be lower for many government buildings, benefiting communities. However, creating long-term job growth was not achieved.
Tags: already been, ARRA funding, Energy Efficiency, energy efficiency, funds through, funds used, Security intended
