1. What are the goals for these programs?

The goals established for the State Energy Program (SEP) are:

• 1. Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government.
• 2. Reduce reliance on imported energy.
• 3. Improve the reliability of electricity and fuel supply and the delivery of energy services.
• 4. Reduce the impacts of energy production and use on the environment.

The American Recovery and Reinvestment Act (Recovery Act or ARRA) was enacted to preserve and create jobs and promote economic recovery; to assist those most impacted by the recession; to provide investments needed to increase economic efficiency by spurring technological advances in science and health; to invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and, to stabilize State and local government budgets.

2. What programs will be funded in New Hampshire?

New Hampshire’s 16 ARRA-funded State Energy Programs are broken into 5 broad categories:

1. Buildings – Energy Efficiency Upgrades
2. Transportation – State Fleets and other
3. Renewable Energy Systems
4. Public Policy for EE/RE
5. Innovative Initiatives for EE/RE

Many of these programs and projects will be administered by other State agencies or subcontracted in competitive Request-for-Proposals processes, all with oversight from OEP.

With all subawardees, OEP will require stringent reporting requirements, including timely expenditure of the funds, and calculation of job creation and retention, energy savings, emissions reductions, and environmental impact and historical preservation statements, where appropriate. Compliance with all ARRA requirements will be emphasized in the RFPs. Those who do not meet the guidelines or who prove incapable of expending funds in a timely manner will be required to return the funds to OEP for redistribution.

3. What is the funding schedule from DOE?

ARRA funds for State Energy Programs and projects cannot be expended until the ARRA-SEP plan is approved by DOE, most likely in mid to late summer 2009.

All funds must be expended by OEP, contractors, and subcontractors, by April 30, 2012.

ARRA gives preference to activities that can be started and completed expeditiously.

States must submit an initial application package prior to the comprehensive application package which must be submitted within 60 days after the FOA is issued. New Hampshire submitted this application on March 23, 2009.

States must submit a comprehensive application package to DOE by May 12, 2009. New Hampshire submitted this application on Mary 12, 2009.

DOE will closely monitor the expenditure rate of ARRA funding by the states to ensure the targets and purposes set by the Administration and outlined by US Office of Management and Budget are met. Funds will be provided to States according to the following schedule:  

• 10% of the recipient’s total allocation at time the initial grant is awarded.  This is ramp-up funding, not to be used for programs or projects.
• 40% of the State’s total allocation upon DOE approval of the State Plan.  This will be done through an amendment to the grant award. 
• 10 - 20% of the recipient’s total allocation amount when recipients demonstrate that they have obligated funds appropriately and jobs are being created, based on DOE review of the progress reports and monitoring.
• 30 - 40% of the recipient’s total allocation amount when the recipient demonstrates continued progress based on DOE review of the progress reports and monitoring.  

If Progress Reviews reveal deficiencies, such as funds not disbursed, jobs not created, insufficient technical monitoring, or failure to meet reporting requirements, OEP will require the return of funds for redistribution, and DOE reserves the right to place a hold on current balances, and withhold further funding until deficiencies are corrected.

4. How can I apply for funds?

State agencies that will be receiving funds have already been contacted about these funding opportunities, and memoranda of understanding and agreements are under discussion.

Third parties seeking to administer programs have an opportunity to submit proposals in response to RFPs. To be added to our listserv for notification, please contact us. OEP will oversee the subcontractors who will administer those programs.

Still other programs and projects administered through OEP will be promoted through competitive RFP processes. OEP encourage you to join the listserv for additional information.

Please keep in mind that OEP does not anticipate awarding grants until our ARRA-SEP plan is approved by DOE, anticipated for late summer 2009.

5. What are Metrics and how do I calculate them for proposals?

President Obama has committed to transparency and accountability in the use of the funds provided through ARRA. It is important therefore that the activities carried out and the results achieved with those funds are tracked carefully and reported clearly and quantifiably. The results achieved with SEP ARRA funding will be assessed according to the following performance metrics:

1. Jobs created
2. Energy saved (kwh/therms/gallons/BTUs/etc.)
3. Renewable energy installed capacity and generated
4. GHG emissions reduced (CO2 equivalents)
5. Energy cost savings
6. Funds leveraged

To ensure the effective use of funds, DOE will evaluate State Plans based on the energy savings per dollar invested that are projected to result from the programs and measures proposed by the State in its Plan. DOE strongly encourages States to propose measures that will achieve no less than 10 million source BTUs saved per $1,000 spent. DOE may provide additional guidance to states regarding the measurement and calculation of energy savings.

6. What is the Davis Bacon Act and where can I learn more about it?

The Davis Bacon Act sets wage requirements for contractors and subcontractors who are working on public building improvements funded under ARRA. The requirements are based upon prevailing industry wage rates and are intended to ensure that workers receive fair pay. The US Department of Labor has many resources available on their Web site. OEP will also provide guidance to awardees on Davis-Bacon compliance.

7. Do I have to Buy American and are there exceptions/exemptions?

The Buy American provisions apply to all construction-related work in public buildings. Awardees must buy American-made steel, iron, and manufacture goods, unless certain conditions exist, including:

• inconsistent with the public interest;
• iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality;
• inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

OEP and DOE will entertain detailed written justification as to why the provision needs a waiver.

8. What are the Prohibited Uses of funds for the State Energy Programs?

States may not use SEP funds:

• for construction, such as construction of mass transit systems and exclusive bus lanes, or for the construction or repair of buildings or structures;
• to purchase land, a building or structure or any interest therein;
• to subsidize fares for public transportation;
• to subsidize utility rate demonstrations or State tax credits for energy conservation or renewable energy measures; or
• to conduct or purchase equipment to conduct research, development or demonstration of EE/RE techniques and technologies not commercially available.
• These funds may not be used for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool.

9. Are there additional requirements to accept ARRA funds?

By receiving federal funds, you and your project are subject to certain provisions and laws, including but not limited to Davis-Bacon Wage Rates, Historical Preservation requirements, and Environmental Protection provisions.  Please familiarize yourself with all of these requirements prior to pursuing funding for your project or program.

10. Who can help me with the Historical Preservation requirements?

Please contact the NH Preservation Alliance or the NH Division of Historical Resources. Their Web sites contain guidance, examples, explanations, and contact information.

11. When will RFPs be issued?

OEP will be seeking partners to administer a number of the programs under the State Energy Program funded by the Recovery Act. OEP anticipates issuing RFPs starting in August, 2009, however contracts may not be signed until plan approval by DOE. Please contact us to join the listserv for updates.

12. What is the percentage of funding allowed for administrative needs?

Unlike other programs where there is an administrative cap or match required for these programs, ARRA-SEP programs and projects do not have an administrative cap. Nevertheless, OEP will keep administrative expenditures to a minimum.

13. Can ARRA-SEP funds be used to replace State funds?

No. ARRA-SEP funds are specifically dedicated to expand or establish energy efficiency or renewable energy programs or projects. DOE requires proof of previous program costs as well as budgets for 2008-2012 to ensure that ARRA funds are not replacing funds previously budgeted. Nevertheless, OEP highly encourages leveraged programs, funds, and resources.

More questions and answers about
Recovery Act funded State Energy Programs.

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