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ARRA State Energy Program (SEP)
Overview
Project application process
Selection Criteria
Overview
The American Recovery and Reinvestment Act (ARRA) of 2009 directs states to focus State Energy Program (SEP) funding on energy efficiency and renewable energy.  ARRA calls for expanding existing programs approved by the state, directing funds to energy efficiency retrofits of buildings and supporting renewable energy projects (DE-FOA-0000052, p. 26).  To increase the impact of the stimulus funds, USDOE gives preference to projects with a high degree of leverage or matching funds.  (DE-FOA-0000052, p. 7, p. 26-28)
 
SEP GOALS (10 CFR 420)
The State Energy Program (SEP) goals are to help states:
  1. Increase energy efficiency to reduce energy costs
  2. Reduce reliance on imported energy
  3. Improve the reliability of electricity and fuel, and the delivery of energy services
  4. Reduce the impacts of energy production and use on the environment
 
The purpose of the SEP ARRA funds are to:
  1. Stimulate the creation or increase the retention of jobs
  2. Save measurable energy (10 MMBtu per $1,000 invested)
  3. Increase energy generation from renewable resources
  4. Reduce greenhouse gas emissions
 
States are required to commit to using SEP ARRA funding to expanding existing programs, and to not supplant or replace existing state, ratepayer or other funding.  (DE-FOA-0000052, p. 23)
 
Projects need to be ready-to-go because funds are to be obligated by September 30, 2010 and spent by March 31, 2012.
 
SEP USES – SEP Funds can only be used for Public Buildings, including schools, colleges, universities, state and local government buildings.
 
Under ARRA guidelines, activities supported by State Energy Program funds include:
  1. Energy efficient lighting.  Lighting accounts for nearly 30% of all electricity consumed in buildings
  2. Helping reduce energy costs in K-12 school buildings, where more than $6 billion is spent every year across the country on energy
  3. Improving the energy efficiency of state and local government buildings, where energy costs can account for as much as 10% of a government’s annual operating budget
  4. Using biomass as fuel for combustion in a boiler to provide heat and generate electricity
  5. Using solar energy for heating, lighting buildings, or creating electricity
  6. Using geothermal energy for heating buildings
  7. Creating revolving loans for energy efficiency and renewable energy measures
 
SEP PROHIBITIONS (10 CFR 420.18)
State Energy Program funds cannot be used for:
  1. Construction, such as construction of mass transit systems and exclusive bus lanes, or for construction or repair of buildings or structures;
  2. To purchase land, a building or structure, or any interest therein;
  3. To subsidize fares for public transportation;
  4. To subsidize utility rate demonstrations or state tax credits for energy conservation measures or renewable energy measures; or
  5. To conduct, or purchase equipment to conduct, research, development or demonstration of energy efficiency or renewable energy techniques and technologies not commercially available.
 
SEP ARRA ADDITIONAL PROHIBITIONS
Funds cannot be used for:
  1. Swimming Pools
  2. Zoos
  3. Aquariums
  4. Golf courses
  5. Gambling establishments
 
OTHER FEDERAL REQUIREMENTS
All projects funded by SEP ARRA monies must comply with at least the following federal laws:
  1. National Environmental Policy Act (NEPA) - Categorical Exclusions, Environmental Assessments, or Environmental Impact Statements
  2. Davis-Bacon Act - paying prevailing wages

Project application process
  • Review the ARRA SEP program guidelines above to make sure you qualify.
  • Download the ARRA SEP application 
 
  1. Complete and submit the application by the deadline, 5PM (PDT) August 10, 2009 for you to remain eligible.
  2. Mail the application to: 
     Oregon Department of Energy
     625 Marion St. NE
     Salem, OR  97301-3737
  3. Applications will be reviewed and selected based on selection guidelines. Selection guidelines are posted on the Web at www.oregon.gov/ENERGY/Recovery/index.shtml.

  4. Phase 2 selections will be sent to US DOE for approval the week of September 7, 2009.
    We will begin the review process for Phase 3 projects the week of September 14, 2009..
  5. Upon approval, ODOE will notify successful applicants that their projects are funded (This will start happening after approximately August 31, 2009).
    • Please provide all support documentation at time of application
    • Due to the large number of expected applications, ODOE will not be available to assist in the development of this application.
    • After August 31, 2009, you will be contacted informing you of the status of your application.
    • Submission of this project application does not guarantee selection or funding of project under ARRA SEP criteria.

  6.  Be as complete as you can.  Oregon DOE has received over 1,100 letters of interest representing a request of over $2 billion in funding.  As of June 26, 2009, USDOE has allocated $17 million to Oregon for this initial round.  Projects will be reviewed and selected in phases and will be based on the information received through this application process.
Smaller dollar amounts, less complex projects will be reviewed and approved  first.  Based on the initial letter of interest received, Oregon DOE anticipates the following review and slection phases:
Project Awards
Phase I
Schools – small efficiency upgrades under $50 thousand in requested funds.

Phase II
Schools and local government buildings under $100 thousand in requested funds. ODOE is currently in the process of selecting the recommended projects to submit to USDOE for approval. This should be completed the week of September 7, 2009.

Phase III
Schools, state, local government, colleges, universities under $500 thousand in requested funds. ODOE will begin the review process for these projects beginning September 14, 2009.
 
Phase IV
Schools, state and local government, colleges, universities under  $1 million in requested funds.  Maximum single project funding amount under this application is $1 milllion.
All projects have been scored by the groupings listed above. Award announcements are being made by geographic location, project type, and various other criteria.The first round of funds announced Sept. 22 went to lighting retrofits, windows, and heating, ventilation and cooling (HVAC) system upgrades in K-12 schools. The second round of funds, announced on Oct. 2, was focused on eastern Oregon projects, with some of the work being started before winter.  A third round of projects, concentrated on the western side of the state, was announced on October 20, 2009. After that, announcements will be made on a regular basis.  


Selection Criteria
Applications received by the due date will be considered for funding. The projects will receive a technical review and be evaluated based on the following criteria:
Applications will be evaluated based on their merit including:
  1. Energy Savings
  2. Project is shovel ready
  3. Jobs created/retained
  4. Opportunity for long-term energy savings or production
  5. Capacity to implement the project
  6. Project leverages non-federal funds
  7. Benefits to local community
  8. Geographic distribution throughout Oregon
  9. Unemployment level in the county
  10. Overall ARRA requirement to ensure the state realizes 10 MMBtu energy savings per $1,000 spent statewide
 
Preference will be given to projects that are “shovel ready,” have a significant overall impact to the community, and that demonstrate long term energy savings.
 

 
Page updated: October 20, 2009

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