Governor David A. Paterson today announced that the U.S. Department of Energy (DOE) has approved New York’s plan for federal stimulus funding through the State Energy Program (SEP) of the American Recovery and Reinvestment Act (ARRA). The $123 million SEP plan will create jobs in the clean energy sector by complementing current State programs. The SEP funds will allow the New York State Energy Research and Development Authority (NYSERDA) to provide additional financial support for the installation of energy efficiency measures and renewable energy systems across the State, and for the introduction of alternative fuel vehicles into fleets.

“Just as we are doing in New York, President Obama and Congress have made clean energy investment a central part of their economic recovery strategy for the nation,” said Governor Paterson. “The Department of Energy’s approval of New York’s SEP plan will allow NYSERDA to dedicate an additional $123 million for efficiency and clean energy projects across the State. Under this program, NYSERDA will target local governments, schools, hospitals and not-for-profits in an effort to simultaneously meet our 45 by 15 clean energy goal and reduce energy costs for these institutions.”

U.S. Department of Energy Secretary Steven Chu said: “This funding will provide an important boost for state economies, help put Americans back to work, and move us toward energy independence. It reflects our commitment to support innovative state and local strategies to promote energy efficiency and renewable energy while insisting that taxpayer dollars be spent responsibly.”

In developing the SEP plan, NYSERDA considered: the needs expressed by county and local governments, institutions, and organizations that responded to the Governor’s call for shovel ready projects; priorities that will meet New York’s clean energy goals; opportunities to use ARRA funds to augment rate-payer funded State programs; and the methods to use SEP funds to leverage other resources and provide a steady funding source for energy efficiency projects. Further, NYSERDA took into account the relative cost-effectiveness of each program and strategy to meet the ARRA goals, the budget needed to carry out program activities, and the provisions of the ARRA that apply to the use of SEP funds.

New York’s approved SEP plan includes the following programs:

Energy Efficiency, Renewable Energy, and Alternative Fuel Vehicle Program ($91.2 million)
This program will provide grants to municipalities, schools, hospitals, public colleges and universities, and not-for-profit organizations for the installation of eligible energy efficiency measures, renewable energy systems, and purchase of alternative fuel vehicles. Projects may include: lighting, cooling, heating, motor, and building envelope measures; combined heat and power and geothermal installations; solar thermal and photovoltaic (PV) systems; and light- and medium-duty vehicles fueled by natural gas, propane, hydrogen, or those that use electricity either stored or generated on board as the primary fuel. Funds for technical assistance studies also will be available starting this month to assist customers in evaluating their energy-related projects.

Energy Code Program ($4.4 million)
In cooperation with the New York State Department of State, NYSERDA will support the Governor’s effort to adopt more stringent energy codes for buildings. Various implementation and support services will be available to the entire building community, including local jurisdictions charged with implementation of the state energy code, architects, engineers, and homebuilders, to work aggressively to achieve at least 90 percent compliance in the commercial and residential sectors.

Solar Energy Program ($27.4 million)
NYSERDA will partner with the Long Island Power Authority (LIPA) to implement power purchase agreements to purchase 50MW of solar capacity and to promote the installation of large-scale, multi-megawatt photovoltaic (PV) installations in high-load pockets. LIPA is currently negotiating contracts selected through a competitive process to purchase the renewable energy output from two or more utility-scale PV installations that will be built on Long Island over the next 18 months. These will be the first large-scale solar power purchase agreement projects in New York. NYSERDA also will develop a new competitive program that allows market participants statewide to compete for the incentive level necessary to install PV systems, and another program to provide hands-on experience for students learning to install PV systems through support for projects at local not-for-profit facilities in conjunction with New York’s accredited training programs.

NYSERDA also has submitted its plan to administer a $29 million Energy Efficiency and Conservation Block Grant (EECBG) Program exclusively for small communities (cities and towns with less than 35,000 population and counties with less than 200,000 population) not receiving direct federal assistance. Projects that reduce energy use and fossil fuel emissions, and improve energy efficiency will be considered for funding through a competitive solicitation. Approval of the EECBG program is expected from the DOE later this summer and an announcement will be made at that time that includes eligibility criteria so that county and local governments can apply for funds to implement projects within their communities.

A synopsis of the SEP can be found on NYSERDA’s website: http://www.nyserda.org/Economicrecovery/sep.asp

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