Shepherd Advisors

Feds Allocate $76 Million for Local Energy Efficiency Improvements in Michigan in Addition to previous $325 Million for Weatherization and State Energy Program

The Obama Administration announced on March 26, 2009 that $76,601,500 has been allocated to Michigan counties, cities, and Indian tribes for energy efficiency and conservation projects. The program will distribute approximately $56 million directly to eligible cities, counties, and Indian tribes in Michigan (based on population, broken out in this press release, pages 2-4). Further, the State of Michigan will receive the remaining $20 million, and must pass at least 60% of it on to smaller (ineligible) cities, counties, and Indian tribes that apply to the state.

Called Energy Efficiency and Conservation Block Grants, this funding is available for each unit of government to:

• Support energy audits and energy efficiency retrofits in residential and commercial buildings
• Develop and implement advanced building codes and inspections
• Create financial incentive programs for energy efficiency improvements
• Support transportation programs that conserve energy
• Develop projects to reduce and capture methane and other GHG emissions from landfills
• Install renewable energy on government buildings
• Install energy efficient traffic signals and street lights
• Deploy combined heat and power (CHP) systems

Instructions and information on applying for Block Grants are published on this helpful resource page. To apply for their Block Grants, eligible Michigan communities must:

• Conduct a three step registration process with the Federal government
• Use the application found through FedConnect, searching under reference number DE-FOA-0000013
• Submit applications beginning now through June 25, 2009

Smaller, ineligible communities will need to apply through the State of Michigan, and instructions are yet to be published (as of March 27, 2009).

This is in addition to the $325 million allocated to Michigan (announced March 12, 2009) for the Weatherization Assistance Program and for the State Energy Program.

The $243 million in Weatherization Assistance Program will:

• Add insulation to homes and seal air leaks
• Upgrade heating and cooling systems
• Allow average investment of $6,500 per home
• Be available to families who earn up to 200% of the poverty level ($44,000 for a family of four, for example)
• Save hundreds of dollars per year per home in energy costs

The $82 million in State Energy Program funding is available for any of the following:

• Rebates to consumers for home energy audits or other energy saving improvements
• Development of renewable energy projects for clean electricity generation and alternative fuels
• Promotion of Energy Star products
• Efficiency upgrades for state and local government buildings
• Other innovative state efforts to help save families money on their energy bills