DOE Announces $155 Million for Industrial Energy Efficiency

DOE announced today they would be awarding over $155 million for industrial energy efficiency projects and technical assistance. "Many companies already realize that improving efficiency saves money while helping the environment," said DOE Secretary Steven Chu. "These projects will make energy efficiency technologies more widely available, cutting energy use and reducing carbon pollution across the country."

About $146 million was awarded to nine companies implementing energy efficiency projects in plants across the country.

The remaining $9.5 million was awarded to the university-based Industrial Assessment Centers (IAC), state agencies, regional partnerships, and a national technical assistance provider to offer local technical support for the industrial sector. These awards went to 15 IACs, 11 state energy offices/organizations, five regional efficiency partnerships, and one national technical assistance provider.

More detail on the grant selections can can be found here.

This announcement is a very good step for industrial energy efficiency. The bulk of the grant money will go toward the implementation of projects, in accordance with the goals of the stimulus package. Some funds will be retained for more strategic uses such as technical assistance which can beget even more projects down the road.

However, the demand for industrial energy efficiency remains extremely high. DOE has publicly stated that requests for this funding exceeded $10 billion, or nearly 65 times the funds available. The industrial sector continues to be undervalued by policymakers. Despite accounting for one-third of the energy use and 27% of greenhouse gas emissions in the United States (LBNL), the industrial sector has not been receiving appropriate consideration and funding to reflect this importance. As a reference point, industrial energy efficiency was given about 0.02% of stimulus funds, and receives about 4% of DOE Energy Efficiency and Renewable Energy budget.

ACEEE commends today's DOE grant allocation, and hopes that future policies and appropriation will give increased attention to the industrial sector.

Advanced Energy Manufacturing Tax Credit - Applications Due September 16, 2009

From the DOE office of Energy Efficiency and Renewable Energy:

Through the American Recovery and Reinvestment Act of 2009, the Department of Treasury is awarding $2.3 billion in tax credits for qualified investments in advanced energy projects to support new, expanded, or re-equipped domestic manufacturing facilities. The Advanced Energy Manufacturing Tax Credit will help secure American leadership in the clean energy sector by supporting the larger goals of the Recovery Act to stimulate economic growth, create jobs, and reduce greenhouse gas (GHG) emissions.

The U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS) will review applications and make determinations on eligibility and merit. The application period opens August 14, 2009. Preliminary applications are due September 16, 2009, followed by final applications due to DOE and the IRS October 16, 2009.

Eligible projects include:

• Technologies that create energy from renewable resources
• Energy storage technologies
• Advanced transmission technologies that support renewable generation
• Renewable fuel refining
• Energy conservation technologies
• Plug-in electric vehicles and components
• Property to capture and sequester carbon dioxide emissions, and to reduce GHG emissions.

Successful applicants will receive acceptance agreements from the IRS by April 16, 2010. Projects must be completed within 4 years of acceptance. Credits will cover future expenses and will not award past investment(s).

Read the DOE press release to learn more. Make sure to look in the right column for application forms and contact information.

Visit ITP's solicitations page for information on other financial opportunities.

More Manufacturing Green Shoots

The Federal Reserve reported today that industrial production increased 0.5% in July, the first month in the positive realm in 9 months. The automotive sector lead the recovery as a result of the CARS ("Cash for Clunkers") program, but other sectors expanded by 0.2%, with aerospace equipment, computers and electronic products, and plastics leading the way. "Industrial production likely will remain healthy for the rest of the year as companies restock depleted inventories," said Joshua Shapiro, chief U.S. economist for MFR, Inc. The Commerce Department reported last week that wholesale inventories declined 1.7% in June. As an indication of this, AISI reported that steel manufacturing rate of capability utilization was 53.2%, up from a low of 41% early in the spring.

These indications suggest a modest and uneven recovery, but clearly the sector has begun to turn the corner.

Department of Treasury Grant Guidance

From the EPA CHP Partnership:

...The U.S. Department of Treasury has issued guidance for grants in lieu of tax credits for energy production facilities contained in the American Recovery and Reinvestment Act (ARRA) of 2009.

The Department of Treasury is not yet accepting applications. This information has been released to allow companies to prepare in advance for submitting a grant application. Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction.

Section 1603 of ARRA allows eligible entities that place in service specified energy production facilities to apply for grants from the U.S. Department of the Treasury in lieu of claiming applicable investment and production tax credits. For eligible CHP projects, the Department of Treasury will make payments to qualified applicants in an amount equal to 10 percent of the system cost. There are also specific provisions for microturbine and fuel cell projects. Eligible microturbine projects can receive 10 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $200 for each kilowatt of capacity. Eligible fuel cell projects can receive 30 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $1,500 for each 0.5 kilowatt of capacity.

Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction. A completed application will include the signed and complete application form; supporting documentation; signed Terms and Conditions; and complete payment information. All applications must be received before the statutory deadline of October 1, 2011. For a facility placed in service in 2009 or 2010, applications must be submitted after the facility has been placed in service and before October 1, 2011. Treasury will review the applications and make payment to qualified applicants within 60 days from the date the completed application is received by Treasury. For a facility not placed in service in 2009 or 2010 but for which construction began in 2009 or 2010, applications must be submitted after construction commences but before October 1, 2011. If the facility has been placed in service at the time of the application, Treasury will make payments to qualified applicants within 60 days from the date the completed application is received. For the facility not yet placed in service at the time of the application, Treasury will review such applications and notify the applicant if all eligibility requirements that can be determined prior to the facility being placed in service have been met.

For more information including the guidance document, terms and conditions, and a sample application, please visit the U.S. Department of Treasury’s Web site at: http://www.treas.gov/recovery/1603.shtml.

Questions about the program and the application process at: 1603Questions@do.treas.gov.

Industry Receives $256 Million in Stimulus Funding

From the Office of Energy Efficiency and Renewable Energy (EERE) bulletin:

On June 1, 2009, DOE Secretary Steven Chu announced plans to provide $256 million from the American Recovery and Reinvestment Act (Recovery Act) to support energy efficiency improvements in major industrial sectors across the American economy.

The funding is targeted at reducing the energy consumption of America's manufacturing and information technology industries, while creating jobs and stimulating economic growth. These programs will help create manufacturing jobs quickly, along with jobs for technicians and experts who will be needed in the long-term to maintain and operate the new equipment.

• Combined Heat and Power (CHP), District Energy Systems, Waste Energy Recovery Systems, and Efficient Industrial Equipment ($156 Million)—This funding is targeted toward projects that represent proven and effective near-term energy options that can be deployed in industrial and residential settings to improve efficiency, control costs, and limit greenhouse gas emissions—making U.S. industry more productive and competitive. Learn more about ITP’s Industrial Distributed Energy research and development projects, including CHP.
• Improved Energy Efficiency for Information and Communication Technology ($50 Million)—This project will select and fund applicants to conduct research, development, and demonstration (RD&D) projects to promote new technologies that improve energy efficiency in the growing information and communication technology (ICT) sector. Read the ICT vision and roadmap, Routing Telecom and Data Centers Toward Efficient Energy Use (PDF 2.3 MB). And learn more about ITP’s data center efficiency activities.
• Advanced Materials in Support of Advanced Clean Energy Technologies and Energy-Intensive Processes ($50 Million)—DOE will support RD&D projects for advanced industrial materials that can be used in fuel flexibility programs, CHP technologies, energy intensive processes, and nanomaterials and nanomanufacturing. These projects will help the American industrial sector increase competitiveness, while rapidly introducing advanced technologies. Learn more about ITP’s crosscutting technologies RD&D efforts.