On Tuesday, February 17, 2009, President Obama signed into law the $789.5 billion "American  Recovery and  Reinvestment Act," which includes the nation's largest investment to date in  clean energy, energy efficiency and green jobs. More than $80 billion in spending will go toward renewable domestic energy, a better grid to transmit electricity, energy research, and programs to reduce fossil fuels, such as weatherizing homes and federal buildings.

North Carolina is expected to receive approximately $6.1 billion in stimulus funds, plus $1.7 billion in tax cuts for working families and additional competitive grants that may be awarded. Click here to see a detailed list of how the $6.1 billion will be distributed in North Carolina.  The Governor's office has also identified almost $1.6 billion in grants that are coming to North Carolina, for an overall total of nearly $7.7 billion so far.

 

JOB CREATION
The stimulus package is expected to create or save 3.5 million jobs across the country over the next two years, including 105,000 in North Carolina. Click here to see estimated job numbers for North Carolina's congressional districts (see pg. 8).


STIMULUS TRACKING SYSTEMS
Gov. Bev Perdue launched www.NCRecovery.gov, a guide to services of the newly created Office of Economic Recovery & Investment. This website will let visitors track federal economic recovery funds in North Carolina, as well as learn about local contract and grant opportunities. After signing the legislation into law, President Obama launched www.recovery.gov, which will provide detailed information on how the funds are being distributed by all appropriate federal agencies to states across the nation.


STIMULUS GRANTS & LOAN PROGRAM OPPORTUNITIES
The American Recovery and Reinvestment Act provides $32.6 billion to the Department of Energy. More than half of those funds will advance renewable energy and energy efficiency programs.

Would you like to apply for some of these funds? NCSEA has compiled information and helpful links to energy-related grants, loan programs and other federal funding sources to make it easier for you to find these opportunities. Click here for NCSEA's Grants webpage.


'1603' GRANT PROGRAM UPDATE
The US Department of the Treasury and Energy will provide an estimated $3 billion for the development of renewable energy projects across the nation and are currently offering guidance businesses will need to submit a successful application. Established under Section 1603 of the American Recovery and Reinvestment (Recovery Act), this program gives owners of many types of renewable energy facilities the ability to offset project costs through a 30% grant (10% in the case of certain types of energy property) instead of energy tax credit under Internal Revenue Code Sections 45 & 48. The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. Click here for more information concerning the '1603' grant program, including the terms and conditions, a 20-page guidance document, and a sample application, or to submit your application.


NC's STATE ENERGY PLAN APPROVED BY FEDS
The US Dept. of Energy has approved NC's $75.9 million Energy Plan to improve energy efficiency, promote greater use of renewable energy resources, and create more green jobs. The program will be funded through the state's share of federal American Recovery & Reinvestment Act funds. Click here for more information.


STATE ENERGY OFFICE WORKSHOPS & WEBINAR - MATERIALS NOW ONLINE
The North Carolina State Energy Office recently conducted 8 free workshops across the state and an interactive online webcast workshop to help local government and public school officials gain access to more than $58.3 million in federal Recovery Act funds to create jobs and conserve energy. They also conducted an interactive webcast workshop. If you weren't able to participate, visit the SEO's website to access powerpoint presentations, sample energy plans, audit checklist, and other helpful materials.


STIMULUS WEATHERIZATION FUNDS: 5 CLASSES REQUIRED
Contractors and subcontractors hoping to qualify for work weatherizing homes as part of the federal stimulus funds will have to take five energy-efficiency-related courses throughout the next year. The US Dept. of Energy recently awarded $52.78 million to NC for its weatherization assistance program and will later receive an additional $65 million, for a total of more than $131 million. These funds will weatherize more than 23,500 homes across NC. Click here for more information.


ENERGY EFFICIENCY & CONSERVATION BLOCK GRANTS
The Energy Efficiency and Conservation Block Grants (EECBG) Program, funded for the first time by the American Recovery and Reinvestment Act (ARRA), represents a Presidential priority to deploy the cheapest, cleanest, and most reliable energy technologies we have - energy efficiency and conservation - across the country.
 
EECBG has launched a new website, Solution Center - Eligible Activities, which is designed as a resource for individuals looking for information on energy efficiency and renewable energy. It includes energy savings information tailored to local and state governments and Indian tribes. Information is arranged by eligible activity, and includes a definition of each as well as related best practices, samples of completed projects that can be used as a reference for your own energy efficiency projects, and links to related project resources. Click here to go to this new website.


SMART GRID FUNDS
The federal stimulus plan includes $3.375 billion in smart grid technology development grants and an additional $615 million for smart grid storage, monitoring and technology viability. These funds, which will modernize the nation's electrical distribution system, will greatly impact North Carolina's researchers, consultants, manufacturers and utilities who have made our state a center for developing a "smart grid."

On Thursday, April 16, Vice President Biden and Commerce Secretary Gary Locke detailed plans by the US Department of Energy to develop a smart, strong and secure electrical grid, which will create new jobs and help deliver reliable power more effectively with less impact on the environment to customers across the nation. Click here for more information.

As part of this announcement, the DOE released a Notice of Intent (NOI) for the DOE Smart Grid Investment Grant Program, as well as a draft Funding Opportunity Announcement from the Department for a smart grid regional demonstration initiative. The grant program will provide grants ranging from $500,000 to $20 million for smart grid technology deployments. It will also provide grants of $100,000 to $5 million for the deployment of grid monitoring devices. This program provides matching grants of up to 50% for investments planned by electric utilities and other entities to deploy smart grid technologies. The first application deadline is July 29, 2009.

  
ADDITIONAL RESOURCES

Click here to view a summary of energy and water related funding included in the stimulus bill - scroll down the page to the blue chart (NCSL).

Click here to view a summary of all issue areas included in the stimulus bill (NCSL). And, click here for a full summary released by US House Speaker Nancy Pelosi.

Click here for Initial Implementing Guidance for Federal Agencies for Implementing the stimulus bill (White House).

On March 31, 2009, the NC Utilities Commission issued their much anticipated Order changing North Carolina's "Net Metering Policy," which will become effective June 1, 2009. NCSEA's initial analysis of the Order identifies the following (minor) hard fought victories, which are listed below. After 3 years of NCSEA's work with our members, donors, grant funders, the NC Utilities Commission, Duke Energy and Progress Energy leading up to this most recent ruling on net metering, the Commission has agreed in part or entirely with NCSEA on many points; however, much more work lies ahead.

NCSEA first appeared before the NC Utilities Commission on October 19, 1998, to make a presentation regarding renewable energy and electric utility industry restructuring. In its presentation, NCSEA asked the Commission to institute a generic proceeding to consider adopting a net metering requirement in North Carolina. Due to NCSEA’s request, the Commission issued an Order on November 18, 1998, that initiated investigation and comments on the issue.

Click here to view the full net metering Order (e100, sub 83), issued on March 31, 2009.
 
The Commission made the following (minor) improvements to North Carolina's net metering policy, and ordered Duke Energy, Progress Energy, and Dominion to revise their net metering programs accordingly:

• Increase eligible system size up to 1 MW
• Remove the aggregate limit on net metered systems (previously restricted at 0.2% of the prior year's retail peak load
• Customers can choose which rate schedule they net meter under, BUT can only retain ownership of excess Renewable Energy Credits (RECs) associated with excess generation if a customer chooses to net meter under Time of Use Demand rate offered by the utility
• The Commission rejected Progress Energy's motion to include the "cost of net metering" under the REPS incremental cost rider, which means they cannot inflate the cost of compliance with the REPS in CEO Bill Johnson's attempts to minimize the amount of renewable energy implemented under the REPS law
• All technologies defined as "renewable energy resource" by NC's REPS law, except for thermal energy, are eligible to net meter up to 1 MW system size
• Duke Energy will revise their "SCG Rider" which is an alternative to "net metering" to also increase the eligible system size limit for this rider to 1 MW

The utility still cannot bill for "standby charges" on renewable energy systems under 20 kW residential and 100 kW commercial. In fact, NCSEA called the Commission's attention in this proceeding to Dominion's violation of the no standby charge ruling in the existing net metering tariff. The Commission Order specifies that Dominion remedy this violation.
 
NCSEA's initial analysis: For commercial customers, who are typically already on Time of Use Demand rates, that install distributed generation, all the RECs are clearly owned by the customer and can be sold. This especially benefits commercial customers that install systems that are 100 kW and under. For residential customers, the ruling allows net metering on the same predictable rate structure that they're accustomed and they will offset their energy consumption in the near- and long-term future as electricity rates rise. The new rules also remove the aggregate cap so distributed generation can be widely adopted.

North Carolina's strong interconnection standard and new net metering policy are proof positive that NCSEA is succeeding in our mission to create a sustainable energy economy for NC; however, much more work lies ahead. Your membership dues, investments in NCSEA and personal support make it possible for us to help you create a sustainable energy future for North Carolina and the broader Southeast.

This ruling was made possible due to NCSEA's work with our members, donors, grant funders, the NC Utilities Commission, Duke Energy and Progress Energy. In 2008, many of our members joined NCSEA and Vote Solar to petition the NC Utilities Commission and General Assembly, asking them to make net metering fair for consumers across NC. Also in 2008, many citizens attended public hearings and submitted consumer letters declaring their agreement with NCSEA's position on net metering, along with the highly credible filings of the Interstate Renewable Energy Council (sponsor of NCSEA's Making Energy Work forum in February) and WalMart. Telling the story of their personal experiences helped frame the context within which the Commission's decision developed, and thus improving our State's net metering policy.

 
What is that?  "Defining" the New Energy Economy...
 
"Net metering" refers to a billing arrangement whereby a customer who owns and operates an electric generating facility, such as solar on their rooftop, is billed according to the difference over a billing period between the amount of energy the customer uses and the amount of energy it generates. Additionally, they're able to rollover the excess energy generated for the current month to offset next month's bill. Net metering is commonly referred to as the policy that "lets your meter spin backwards".
 
"Interconnection" is the technical rules for customers to "plug in" or connect to the electricity grid. In July 2008, the NC Utilities Commission largely agreed with NCSEA in making dramatic improvements to NC's simplified interconnection standard. As a result, the 2008 national "Freeing the Grid" report increased NC's grade for interconnection from an 'F' to 'B+'.

"Standby charges" are fees assessed on a distributed generation owner's bill to cover the utility's cost of "standing by" ready to provide electricity at times when the owner's generation system goes down.

A "tariff" is a rate schedule that has contractual requirements.