Overview
The Michigan Appliance Rebate Program is expected to begin for consumers on January 1, 2010 and end February 17, 2012 or until funds are exhausted. The State of Michigan is expected to receive over $9.5 million in federal allocation for it’s state appliance rebate program. Out of that $9.5 million Michigan plans to use 88% or over $8.4 million on the funding of actual rebates. The remaining 12% or over $1.1million will go toward the administration of the program.

Program Objectives
The Michigan Appliance Rebate Program is expected to pay over one hundred and twelve thousand (112,000) rebates replacing the same number of appliances with over a hundred thousand old appliances recycled. Approximately 117 new jobs are expected to be created from the Michigan government appliance rebates program.

Michigan’s rebate program for appliances alone are projected to cause over 26.5 million pounds in annual CO2 reductions, almost 303 million gallons of annual water savings and an annual energy savings of14.3 million kilowatt-hours (kWh).

Appliances Included:

• The Michigan Appliance Rebate Program will include:
• Clothes Washers (Tier 3) – Rebate Amount: $50 (CEE – Consortium for Energy Efficiency)
• Refrigerators (ES) – Rebate Amount: $50
• Refrigerators (Tier 3) – Rebate Amount: $100 (Energy Star & CEE)
• Dishwashers (ES) – Rebate Amount: $25
• Dishwashers (Tier 2) – Rebate Amount: $50 (Energy Star & CEE)
• Propane Furnaces – Rebate Amount: $300 (Energy Star)
• Propane Water Heaters – Rebate Amount: $100 (Energy Star)
• Oil Furnaces – Rebate Amount: $300 (Energy Star)
• Solar Water Heaters – Rebate Amount: $1,200 (Energy Star)

Program Projected Time-lines:

• Receive DOE approval – November 2, 2009
• Issue Request for Proposal for implementation contractors/grantees – November 2, 2009
• Receive proposals to implement program – November 25, 2009
• Award contracts/grants to implement program – January 1, 2010
• Begin processing mail-in rebates – February 15, 2010
• End first year of program – December 31, 2010
• Begin second year of program if funds are available – January 1, 2011
• Close out program – February 17, 2012

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• central air conditioners
• heat pumps (air source and geothermal)
• boilers
• furnaces (oil and gas)
• room air conditioners
• clothes washers
• dishwashers
• refrigerators/freezers
• water heaters

How It Works:
The U.S. Government has given each State the authority to develop their own government appliance rebate program using the government’s guidelines. Individual states can decide the amounts of the appliance rebates up to $200 (reported) per selected appliance that is Energy Star qualified. Each state develops it’s own rebate program and may choose which appliances to include as long as it is on the list of approved Energy Star appliances that the U.S. Government listed. States will receive formula-based funding in order to start or continue an already established ENERGY STAR appliance rebate program.

When The Government Appliance Rebate Program Starts:
Each state had until October 15, 2009 to submit their appliance rebate program details to the U.S. Department of Energy for approval. The DOE said it will take several weeks to process all of the applications. Once the state’s government appliance rebate program applications are approved they can begin to launch the individual programs. The Appliance Rebate Program should be available for consumers by late 2009 or early 2010, depending on each state’s progress.

Why An Appliance Rebate Program?
Officially called the the American Recovery and Reinvestment Act, the stimulus bill is very simple. To paraphrase in layman terms the appliance rebate program has two basic objectives: (1)Save energy and reduce fossil fuel emissions while (2) stimulating the economy with a Stimulus Rebate Incentive Program. Consumer spending, while on the rise, should increase once the Government appliance rebate program goes into full effect. Like Obama’s Cash For Clunker Stimulus Program the Energy Efficient Appliance Rebate Program (eearp) is a two-fold concept. While boosting the economy with an incentive program the Country benefits from a cleaner environment. First, with fewer early model cars on the road and now with more energy efficient appliances in operation. That’s the reasoning behind allowing only Energy Star qualified appliances into the program. ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to help consumers and business save money while also protcting the environment by using energy efficient products.

Conclusion / Commentary:
Just like every other Government sponsored stimulus program, there will almost certainly be a lot of controversy surrounding the issue. The media has yet to decide it’s role in the push for guiding popular opinion, probably waiting to see if consumers actually save hundreds of dollars with the government sponsored rebates on appliances this fall. Radio talk show hosts will without a doubt seize this golden opportunity to lodge yet another dagger into the heart of Obama Administration. The bottom line? That depends of you. If you are anything like me, with a ten year old gas water heater on it’s last leg and energy bills out of control you can’t wait to take advantage of the appliance rebates. I only hope it amounts to huge savings and not just a big marketing boost for big business. If I can get a $200 rebate or tax incentive on a $900 hot water heater I’m going to be jumping up and down. Our dishwasher and stove are also out-dated but I didn’t see stoves on the list but I guess we’ll see. Personally, I would love to update my furnace but that’s a big ticket item in my world and a two hundred dollar appliance rebate will hardly afford me the opportunity to replace it. I guess I can’t, after all, ask for an entire home makeover from a single Government incentive program paid for with taxpayer money. Where is Ty Pennington when you need him?

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• increase energy efficiency to reduce energy costs and consumption for consumers, businesses, and government;
• reduce reliance on imported energy;
• improve the reliability of electricity and fuel supply and the delivery of energy services; and
• reduce the impacts of energy production and use on the environment.

More specifically, activities carried out and results achieved with SEP ARRA funding will be assessed by performance metrics including but not limited to:

• Energy saved (kWh/therms/gallons/Btus/etc.)
• Renewable energy installed capacity and generated
• GHG emissions reduced (CO2 equivalent)
• Energy cost savings
• Funds leveraged

Status of Application

On May 14, 2009, NYSERDA submitted the Comprehensive Application for the State Energy Program to the U.S. Department of Energy. We received approval of our State Energy Program plan on July 2, 2009.

Reports

The State is required to report regularly on the activities carried out with SEP ARRA funding. On a quarterly basis, the State will be required to report on progress in terms of specific activities and amounts of funding obligated and expended. All reports associated with funded efforts will be posted by NYSERDA on its Web site as they become available.

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The Appliance Rebate Program Objectives are:

• Save energy by encouraging appliance replacement through consumer rebates
• Make rebates available to consumers
• Enhance existing rebate programs by leveraging ENERGY STAR national partner relationships and local program infrastructure
• Keep administrative costs low while adhering to monitoring and evaluation requirements
• Promote state and national tracking and accountability
• Use existing ENERGY STAR consumer education and outreach materials

For more information, see the full solicitation.

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The U.S. government’s stimulus package signed into law this year included $300 million to fund the Energy Efficient Appliance Rebate Program.

Complete details of this new appliance rebate program have not been release yet but GovernmentApplianceRebates.com is poised at the ready to announce newly released details as they happen. Be sure to subscribe to our feed to stay up to date so you can take full advantage of this new savings.

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The state’s two other large utilities are not far behind. San Diego Gas and Electric (SDG&E) has closed its rebates for appliances and water heaters and will close most other rebates for single-family residences on August 13th. It has also closed a number of its rebates for multifamily residences. Southern California Edison (SCE) was down to 5 percent of its funding for multifamily residences back in late May, and as of July 12th, had 38 percent of its funding for single-family residences. See the SDG&E and SCE residential rebate Web sites.

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“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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States have the flexibility to select which residential Energy Star appliances to include in their programs and to determine the individual rebate amount for each appliance. However, DOE recommends that they focus on heating and cooling equipment, appliances, and water heaters, as these products offer the greatest energy savings potential. Specific targets include: central air conditioners, heat pumps, boilers, furnaces, room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heaters.

The Energy Star program, a joint endeavor of the U.S. Environmental Protection Agency and DOE, covers over 60 product categories from 2,645 manufacturers, sold by more than 2,000 retail partners. To earn the rebate funds, states and territories must file an initial application by August 15, followed by a full application on October 15. DOE anticipates that a vast majority of funding will be awarded by November 30. See the DOE press release and the Energy Star Web site, and to see the full Funding Opportunity Announcement, search the public opportunities on FedConnect for reference number DE-FOA-0000119.

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