Federal Energy Recovery Act Funds Updates for Wisconsin

Even with all of the sources of information these days, it is difficult for the average municipal official to keep tabs on the status of Federal Recovery Act programs. Here are some updates and clarifications to some of the more common questions about federal energy recovery programs:

Energy Efficiency and Conservation Block Grant Program for Municipal government: For MEUW Member communities (non-entitlement, under 35,000 population), the Wisconsin Department of Commerce will establish a competitive grant program so that smaller municipalities can apply for funds to support eligible projects. There will be a total of about $11.7 million available to non-entitlement communities. The US Department of Energy is expected to start releasing the funds for this program until sometime in August/September.

Low-income weatherization funds: Wisconsin has filed its application with the US Department of Energy for these funds ($141,000,000) and DOE approval is expected in the near future.

State Energy Program funds: Wisconsin filed its application in early May for $55,488,000 in State Energy Program funds. Approval is expected by mid-July. Once approved, the Office of Energy Independence will launch the program and keep you updated on how, when and where to apply.

Energy Star appliance rebates: Wisconsin’s share of additional appliance rebate funds from the US Department of Energy is $5.6 million. The application materials for the states to apply for these funds have not been released. Once approved, the application process and the funds will be administered by the Focus on Energy Program.

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APPA Washington Report
What’s Smart Grid?: If You Find Out, Let Me Know
by Robert Varela, Editor, APPA’s Public Power Weekly

“If you find out, let me know.” That’s the half-joking answer an engineer gave when asked what the heck the smart grid is. And that’s why APPA is recommending that a definition of smart grid be developed at the federal level so that stakeholders, lawmakers, customers and the media have a common understanding of the term and what it implies.

That semi-flippant “if you find out” is also why it’s best to be cautious about all of the hype surrounding the “Smart Grid.” There is a role for implementation of smart grid technologies as long as they are proven and cost-effective. The key question is whether or not greater efficiencies can be achieved through the use of a variety of new technologies – both at the transmission and distribution levels and even into consumers’ homes.

However, the federal government isn’t waiting on answers to such questions. The Department of Energy is offering a great deal of stimulus money—some $4.4 billion—for matching grants of up to 50% under two smart grid grant programs. One program will provide technology deployment grants ($3.375 billion) and the other will fund demonstration projects ($615 million).

Tempting, and there undoubtedly are vendors who would be happy to help you spend any grant money your utility might receive. Certainly, if you have a project ready to go, you should give serious thought to applying. Getting 50% of a project paid for is worth wading through a good deal of government red tape.

But the smart grid is still definitely a work in progress, even apart from the lack of a formal definition. Two key areas that still must be addressed are interoperability standards (rules requiring smart grid components and systems to be able to play well with others) and cyber security.

The Department of Energy and the Federal Energy Regulatory Commission must address interoperability for all smart grid equipment so that investments made today will not be rendered obsolete too soon for utilities to recoup the investment and before the equipment should be retired. Cost-effective integration of legacy equipment should be added to the list of priorities for smart grid interoperability standards, APPA said in comments on FERC’s proposed policy statement and action plan on smart grid issues. Many public power utilities have made substantial investments in technologies that may not be state of the art today, “but they certainly are not your grandfather’s traditional ‘dumb’ devices, and they still have many years of useful service left,” APPA said. They should be integrated into “mid-term” smart grid installations, or phased out over time, rather than simply abandoned all at once.

In addressing interoperability, DOE and FERC should follow the industry consensus model used by standards development organizations such as IEEE, National Institute of Standards and Technology and the International Electrotechnical Commission.

For individual utilities considering investment in smart grid technology, the first step should be development of a business case that identifies the goals, benefits and costs for the utility. Determining what aspects of the smart grid are already on the system is important. Before moving forward with smart grid investments, a utility needs to identify sources of funding and develop a repayment plan.

APPA recommends any utility strongly consider conducting pilot programs prior to the full implementation of a smart grid program.

It is important to understand that there are going to be vast changes in the technologies deployed for smart grid activities as utilities move forward with actual implementation. The smart grid is definitely a moving target. APPA has made plans to help its member utilities keep up with that moving target. The association held a “Smart Grid 101” Webinar in June and has posted the presentation in the smart grid section of the Stimulus Information page on www.APPAnet.org. The stimulus page will be updated as new information becomes available. The association is rolling out a Smart Grid Guide Book, and sessions on smart grid topics will be held at APPA meetings, including the National Conference, Economic Development and Broadband Conference, and the Business & Financial Conference.

The smart grid is coming, even if it is in bits and pieces and by fits and starts. The main issue for public power utilities is to get involved with reviewing how your system might be enhanced by investment in the smart grid components that are right for you and your customers.

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US Senate Energy Bill Moves Ahead
House to Vote Soon on Climate Change Bill

Congress continues to make progress on major energy and climate change legislation in the Senate and the House. The full House could soon vote on a global warming bill restricting carbon emissions from power plants and other sources.

The Senate Energy and Natural Resources Committee finished work on its energy bill, voting 15-8 to approve the measure. The same day, APPA sent a letter to the committee's leaders expressing support for the bill, the American Clean Energy Leadership Act of 2009. Among other things, the measure would require 15% of electricity to come from renewable sources by 2021.
 
Sen. Jeff Bingaman, D-NM, chairman of the energy committee, said the bill would "help shift our country to cleaner sources of energy and more secure sources as well." In the House, Speaker Nancy Pelosi, D-Calif., said she wants a floor vote on the Waxman-Markey climate change bill, the American Clean Energy and Security Act, possibly in early July, after Congress returns from its July 4 recess.

Senate Majority Leader Harry Reid, D-Nev., said that he wants to combine the Senate energy bill with climate change legislation. If this occurs, the energy bill probably would be put on hold while the Senate works on a climate change measure.

APPA President and CEO Mark Crisson urged Senate leaders not to combine the energy bill with climate change legislation. “Attempting to address both climate change and comprehensive energy policy issues in one legislative vehicle would simply not be an effective way to achieve either legislative goal," he said.

If the two measures are combined into one big bill, the measure probably would not be ready for a vote by the full Senate until September. In a June 17 letter to the Senate Energy Committee, APPA said it is pleased with the federal renewable electricity standard (RES) in the Senate energy bill, as well as provisions that would advance carbon capture and storage technologies, develop additional renewable energy, enhance energy efficiency, further green jobs training and energy work force development, and foster upgrades in the nation's transmission system.

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