Energy Efficiency and Conservation Block Grant (EECBG) Program

for Massachusetts Cities and Towns < 35,000

 

Question and Answer Forum

 

Under the American Recovery and Reinvestment Act of 2009 (ARRA), the Commonwealth of Massachusetts is eligible to receive $14,752,000 in Energy Efficiency and Conservation Block Grant (EECBG) funds for sub-grants to the 309 municipalities with less than 35,000 residents and for other uses identified in ARRA.  Not less than sixty percent (60%) or $8,851,200 of the EECBG funds are required to be sub-granted to municipalities.  

 

Massachusetts’ Department of Energy Resources’ (DOER) Green Communities Division will provide the following grant programs using the $14,752,000 in EECBG funds for the following:
 
 Grant Program
 Program Budget
 Eligible Municipalities
 1.Competitive funding will be available for the following projects:
  • Solar PV
  • Other Clean Energy Technologies
  • Thermal Energy Efficiency Measures in oil heated buildings only
  • Performance Contract buy-down
 $12,252,000
 < 35,000
 2.Provide DOER’s Energy Information Reporting System free
 $1,500,000
 All 351
 3.Energy code training for all local building inspectors
_____________________________________________________________________________
 4.Technical Assistance Grants for owners agents, energy reduction plans or other activities to support the competitive grant projects
 $1,000,000
 All 351
 
A webinar was provided about this program on May 15th.  The power-point presentation and audio file for the webinar can be found at DOER’s home page at www.mass.gov/doer.

 

Questions:

The Green Communities program is providing this website to provide a public forum for asking questions about the program.  Please use the following e-mail, meg.lusardi@state.ma.us, to ask questions about this program.  Those questions will then be posted here along with answers.  The Green Communities Program will continue to update with answers on a regular basis. 

 

 

Posted Questions and Answers: (note:  the first 14 questions are the questions that were provided before the 5/15 webinar and were answered during the webcast)

 

Q1:  Will there be one or more rounds of funding from DOER? Or, will this be a rolling process on a first come, first serve basis?   There will be one round of funding. 

Q2What is the process for applying, timelines etc?

DOER’s application deadline to DOE for the EECBG program is June 25th.  However, we intend to submit our application earlier than the deadline, by June 5th.  After that we will be preparing the application for the subgrant process to communities.  Our goal is to have that completed within 30 -45 days, during the time that US DOE is reviewing our application.  DOE has indicated that they will be providing a response to the State’s application in the 30 -45 day time frame.  Once we have that approval we will issue the application and host another webinar to go through the application with communities, providing instructions on how to fill it out.   We are looking towards a 6 week turnaround time for submission of applications from communities.  The DOER review time will depend on how many applications we receive, so that is yet to be determined.  DOER is required to obligate its funding within 180 days from receiving approval from US DOE, so this provides the outside timeframe of reference.  It will come in 50% pieces, the second piece coming after reporting has been provided to US DOE.  The period of performance for the projects, according to US DOE, is 36 months.  However, the Patrick Administration’s goals is more in keeping with 18 – 24 months.

 

So the application for municipalities is yet to come, THERE IS NO DEADLINE AT THIS TIME, but given the program guidance and what we have talked about today, communities should be pulling together their projects now.

 

Q3  What is the level of detail required in applications?  What is the evaluations process?  What kind of reporting will be required?  How do we determine the number of jobs created? 

The projects will be evaluated based on the eligibility criteria noted in the webinar and in the guidance  - “Ready to advertise”, # of jobs created, and the amount of greenhouse gas reductions.  To be ready to advertise, it means some sort of feasibility assessment will need to have been completed to make sure the proposed project makes sense.   Reporting required will also be related to the eligibility criteria, how many actual jobs created, what is the actual reduction in fossil fuel consumption and the resulting reduction in greenhouse gases.  We are awaiting further detailed guidance from DOE on how to determine the number of jobs created.

 

Regional applications are acceptable, there is no preference one way or the other, the applications will be evaluated on the same criteria – jobs created, greenhouse gas reductions etc.  A community cannot be part of a regional application as well as submit its own application.

 

Q4   We received several questions on the fact no funding is provided for energy efficiency and conservation (Response REVISED since webinar)

 As noted, we are looking towards the utilities to service energy efficiency and energy conservation measures.  HOWEVER, those communities that are served by oil heat in their municipal buildings may request funds for thermal efficiency and conservation measures for those buildings since there is no efficiency program associated with oil heat providers.

 

Q5  Can Comm Solar rebates be used for the PV projects?

Yes, the Comm Solar program will be a part of the EECBG program.  Further guidance will be provided.  

 

Q6  Explain More about Leveraging other funds?

This is not a requirement, but an important factor.   We will provide  sources of other funds that can be leveraged, which will be important in doing larger projects, which result in the creation of more jobs and allow for more greenhouse gas reductions.  Other sources of funding include Clean Renewable Energy Bonds (CREBs), the Energy Conservation Bonds, MA Renewable Energy Trust (MRET) programs, but we will provide a list of sources.  We will also be providing guidance/fact sheets on CREBs, the Conservation bonds, and more information on Power Purchase Agreements (PPAs).

 

Q7  Rural Community? 

There is no status or preference under this program given to rural communities.  This may question may apply to funds available through the USDA, but this does not apply for the EECBG program.

 

Q8  When referring to other renewables, what applies? 

 We are now referring to this as any other clean energy technologies.  This would include CHP, geothermal heat pumps, wood fired systems, solar thermal.  Systems can be distributed generation or utility-scale. 

 

Q9  What about the other programs that the US DOE states that can be funded under this program?  There were 14 different activity areas?

As noted previously in the webinar, with limited funds we focused the funding in the selected areas based on the list of projects received from the Lieutenant Governor’s (LG) request out to cities and towns and what communities identified as their priorities, other programs available for funding projects on that list (like the utility programs), and the state’s Energy goals.

 

Q10  Will projects submitted under the LG’s list be considered?

As noted previously in the webinar, we received more than $1.3 Billion in projects under that initiative, and have just less than $14M to spend, so a separate process is required.  In addition, we will be requesting more information in our EECBG application process to ensure projects are shovel ready.

 

Q11  Does the EECBG program coincide with our placement in the queue for DOER’s audit program?

No.  The EECBG program is not connected to eligibility in any other program, including the DOER audit program or becoming a Green Community.

 

Q12  Our town is in line for an Energy Audit.  In the application, we submitted information to be used for the Energy Information System because we understand that benchmarking with this system will be a part of that program in FY10.  Will we need to submit a separate application for the EIS under EECBG?

Our intention is for that to not be the case.  But we are in the midst of awarding the contract to a vendor for EIS right now, and if they need more information we may need to come back to those communities to get additional information, but only if required by the vendor.

 

Q13  What type of formal vote is required from the community to demonstrate commitment to the projects?

A vote of the Board of Selectman is sufficient, a town vote is not required for our purposes.

 

Q14  Is technical assistance required to develop an energy reduction plan necessary if we are having an energy audit done under the EAP?

The report provided from your energy audit should be able to be readily turned into an energy reduction plan without extensive effort.  Street lights and vehicles will need to be added by the municipality to make the plan complete.

 

The following Questions and Answers were posted June 3rd, 2009

 

Q15  What if our municipal buildings are heated by oil?  Since there are no utility rebate programs for oil heated programs what can we do?

As noted about and in the revised guidance issued May 15th, thermal energy efficiency measure for oil heated buildings only will be eligible for the competitive sub-grants.  We will be providing further guidance on the types of measures that we will fund in this arena.  

 

Q16  The US DOE guidance allows funds to be used for material conservation.  Will these be eligible for grants for communities < 35,000?

Material conservation is not one of the areas for funding under the sub-grant program for communities less than 35,000. As noted in Q9 above, with limited funds we focused the funding in the selected areas based on the list of projects received from the Lieutenant Governor’s (LG) request out to cities and towns and what communities identified as their priorities, other programs available for funding projects on that list (like the utility programs), and the state’s Energy goals.  The only activity areas we are funding are the areas contained in the revised guidance of May 15th. 

 

 

Q17  Do regional school districts qualify - and if so, does that mean they need to come in under one of the municipal applications?

Regional school districts are not eligible to apply as a distinct entity.  Projects for regional school districts would have to come in under  the municipal applications.

 

Q 18 Sounds like DOER expects to open up the application process for municipalities with populations less than 35,000 around July 15th?   The application window will be open for about 6 weeks, or until the end of August/Labor Day.  Would you agree?

See the response to Question 2 above.  As specific dates are developed we will inform communities.

 

Q19 When do you expect more information about the Energy Conservation Bonds will be available?

The State has begun to look at and evaluate the program information for Energy Conservation Bonds and will issue guidance as soon as it is available.

 

Q20  What does Performance Contract buy-down mean?

Just as in a performance contract utility rebates are applied to the contract that the Energy Services Company provides, a grant to “buy down” your performance contract would be applied in the same way.  If a community is not quite able to make the numbers work for them to do Performance Contracting, the “buy down” grant may make it feasible.  If a community is in the midst of negotiating a Performance Contract with an ESCO, the buy down grant could be used to make the contract more attractive for the community, e.g. shorten the term of the contract or be used to do more measures that were not previously included.  If a community is getting ready to go out for bid for a Performance Contract, they could note in their RFQ that they may receive a grant to buy down the contract and the ESCo could factor it in later if it becomes available.

 

Q21 Is the funding for Solar PV, Other Clean Technologies, and Performance Contracting capped EACH at $150,000, or is it $150,000 in total?  Each community is eligible for $150,000 in grant funding for the competitive sub-grant areas noted above.  A community can request for funding in just one of these areas, or more than one of the areas, but the total they can receive is $150,000.

 

Q22  For a regional application, will the eligible amount for a grant award be capped as if it were a single community application ($150K for the competitive grant) or can several towns add up cap eligibility per town into a larger project (such as $450K for 3 towns together)?

Regional applications can add together their cap per town, e.g. 3 towns together would be eligible for up to $450,000.

 

Q23 Is Solar PV street lighting eligible?

Yes, but in evaluating proposals, Solar PV distributed generation would receive priority for funding over Solar PV street lighting.