Administration Announces $441 Million for State Energy Efficiency Projects

On July 6, Energy Secretary Steven Chu announced that $441 million from the American Recovery and Reinvestment Act (ARRA) will be awarded to states that submitted statewide implementation plans for State Energy Program funding. More than $153 million was awarded to support energy efficiency and renewable energy projects in Arkansas, Georgia, Kentucky, Mississippi, Montana, New York, and the U.S. Virgin Islands. States may use these funds for a wide array of energy efficiency projects, including energy audits, building retrofits, education and training efforts, transportation improvements, and new financing mechanisms to promote investment in renewable energy.

DOE awarded the remaining $288 million to states that submitted plans for expanding their weatherization assistance programs. Arkansas, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, and New Hampshire will use this money to upgrade low-income housing with enhanced insulation, caulking, and other basic energy efficiency measures that significantly reduce the loss of energy through leaks in the building envelope. Wasted energy can add hundreds of dollars to monthly energy bills. The ARRA funds will help weatherize more than 91,000 homes, reducing heating and cooling bills by a projected 32 percent.

ARRA appropriated $3.1 billion to the State Energy Program for activities that advance energy independence and invigorate local economies. All of these projects will create green jobs and reduce greenhouse gas emissions. States are eligible for additional funds if they can demonstrate success in the initial projects. “These awards demonstrate the Obama Administration’s strong commitment to moving quickly as part of the country’s economic recovery – creating jobs and doing important work for the American people – while ensuring that taxpayer dollars are spent responsibly,” said Secretary Chu. “Today’s investments save money for hardworking families, reduce pollution, strengthen local economies, and help move America toward a clean energy future.”

On February 2, EESI conducted a briefing on state energy programs and the economic stimulus bill that Congress was starting to consider and debate.