ARRA Energy Efficiency Block Grants

On Feb. 17, 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) was signed it into law to create new jobs, save existing ones, spur economic activity, and invest in long-term growth. Funds are now being distributed through a variety of designated and competitive grants and funds.

These funds are particularly important to a rural community such as Humboldt County. Although the county and cities recognize the cost-effectiveness of energy efficiency projects, they often lack the necessary funds to pay for the work. The recovery funds, especially when matched with other funds such as utility incentives and rebates, can pay for much if not all costs to make government facilities more efficient.

Special note for fund recipents: please visit our ARRA Tracking webpage for current information regarding Humboldt local government EECBG projects.

Energy Efficiency Conservation Block Grants (EECBG)

ARRA includes $351.5 million for the Energy Efficient Conservation Block Grants ( EECBG) Program in California. EECBG
funds can be used to develop local energy plans and energy assessments, and to conduct activities that result in long-term energy savings, provide jobs and transform markets. Some recommended cost-effective measures include:

• Lighting retrofits and controls
• Street lighting and traffic signal retrofits
• Heating, ventilation and air conditioning (HVAC) modifications and controls
• Automated energy management systems, motors, variable speed drives and pumps
• Water/wastewater system process and control retrofits

Allocation of EECBG Funds

Approximately $302 million was allocated to large cities (population over 35,000) and counties (population over 200,000), directly by the Department of Energy ( DOE) on a per capita basis. More than $30 million was eligible for distribution to small cities (population under 35,000) and counties (population under 200,000). Allocations for small cities and counties were coordinated by the California Energy Commission (CEC) on a per capita basis, with a minimum of $25,000 for cities and $50,000 for counties. The County of Humboldt and all incorporated cities in Humboldt fit within the small city and county category. See below for a list of EECBG local allocations.

All Humboldt County governments submitted projects through a regional collaborative effort, coordinated by the North Coast Integrated Regional Water Management Plan.  For projects within Humboldt County, the Redwood Coast Energy Authority provided technical assistance to coordinate with local government staff, review project eligibility, assess cost-effectiveness and feasibility, and determine opportunities to consolidate projects.

The CEC has completed review and awarded funds to projects in Humboldt County. The CEC contract is still being finalized as of September 2010; ground-breaking is expected to begin fall or winter 2010.

ARRA documents:

• Grant Solicitation and Application Package; American Recovery and Reinvestment Act of 2009, Energy Efficiency and Conservation Block Grant (EECBG) Program, EECBG Small City and County Grant Program; PON-09-001; October 8, 2009 [PDF 916KB]
• California Block Grant Guidelines (Formula-Based Grants);  Energy Efficiency Conservation Block Grants Under the American Recovery and Reinvestment Act of 2009, Commission adopted guidelines; Adopted: October 7, 2009; Publication # CEC-150-2009-002-CMF-REV1. Posted October 7, 2009. [PDF 264KB]

Competitive EECBG Grants

On October 8, 2009 The California Energy Commission released solicitations for bid regarding State Energy Program (SEP) proposals. These proposals could fit under one of three areas: Municipal Financing Program, California Comprehensive Residential Building Retrofit Program, and Municipal and Commercial Building Targeted Measure Retrofit Program. NCIRWMP assembled an RFP following the same multi-county regional approach established for allocated EECBG funds. For the SEP proposal, funds would be used to establish a PACE-like municipal financing program.

Although SEP funds were tentatively approved, during spring 2010 the CEC encountered several major hurdles:

• The Western Riverside Coalition of Goverments (WRCOG) sued the CEC regarding how approvals were granted;
• The Federal Housing Financing Authority took a position that PACE programs increased risks to the mortgage industry, and put roadblocks in place that effectively halted most PACE program development.

As a result of the latter issue, the CEC issued the following statement, "On July 28, 2010, the California Energy Commission canceled the $30 million Municipal Financing solicitation. The Commission action, which responded to roadblocks created by recent actions of the Federal Housing Financing Authority (FHFA), ended awards to the five local governments and jurisdictions of this solicitation that were using Property-Assessed Clean Energy (PACE) financing as the cornerstone of their county and statewide energy investment programs."

The CEC is now reviewing other options to allocate and disburse SEP funds and complete projects within the Department of Energy's ARRA deadlines.

SEP documents:

• Approved EECBG Awards for Small Cities and Counties; California Energy Commission
• Western Riverside Council of Govenments V. California Energy Commission and Department of General Services

Useful links:

• ARRA "The Recovery Act" website: U.S. government’s official website that provides easy access to data related to Recovery Act spending and allows for the reporting of potential fraud, waste, and abuse.
• CEC EECGB website: The California Energy Commission's website for the Energy Efficiency and Conservation Block Grant program.
• EERE EECBG website: The Department of Energy's Energy Efficiency and Renewable Energy's website for the Energy Efficiency and Conservation Block Grant program.