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Show Me The Money: $16.5 Million Available in Loans and Grants Under Washington's State Energy Program
1/4/2010
The American Recovery and Reinvestment Act of 2009 provided $60.9 million in new funding for Washington's State Energy Program ("SEP"). Subsequently, the Washington Legislature allocated $38.5 million to the Washington State Department of Commerce (formerly Community, Trade and Economic Development, or CTED) to administer a loan and grant program for energy efficiency and a renewable energy program (see our client alert, available here, regarding the legislative action). On December 30, 2009, the Department of Commerce announced that it is now deploying $16.5 million from these funds.
This is the second deployment of SEP funding. In the first round, the Department of Commerce awarded $20 million in SEP funds (see our earlier blog post for information about the first round of applications). Recipients of first round awards are not eligible to apply for funds under Round 2. Further, the Department of Commerce has made many rule changes since the first round.In this second round, the loan and grant funds will be allocated to the following four categories:
- $5 million for industrial, commercial and institutional energy efficiency projects, including heat recovery and cogeneration;
- $5 million for clean energy innovation projects;
- $3 million for waste-to-energy projects; and
- $3.5 million for transportation energy projects
SEP funds can be used to demonstrate commercially available energy efficiency or renewable energy technologies. However, SEP funds cannot be used to conduct—or purchase equipment to conduct—research, development or demonstration of energy efficiency or renewable energy techniques and technologies not commercially available.
Eligible projects may receive SEP funding between $500,000 and $2 million, if they have matching funds equal to or greater than the loan and/or grant request. Documentation of the matching funds is required for applications to be evaluated. Documentation of the match can be in the form of the following:
- A letter from a financial institution stating that you have funds on hand;
- Invoices for eligible project equipment purchased since January 1, 2009;
- A letter from your accountant detailing eligible project operating expenditures since January 1, 2009;
- A letter from your financier for funds to be borrowed;
- For funds you will receive from future energy production sales, a letter from the entity that plans to purchase your energy;
- Documentation of accounts receivable or contracts with current customers for an energy product tied to this project showing cash flow;
- Contracts with documentation of awarded grant funds from sources other than SEP;
- A letter from your utility detailing any incentives it will provide; or
- Other clear and complete documentation showing how your match is secured.
Real property, volunteer labor and tax credits will not count toward the match requirement. Other SEP funds cannot be counted for the match. However, you can use other sources of federal funds to fulfill the match requirement.
Eligible applicants include Washington State public sector entities, private entities licensed to conduct business in the State of Washington and federally recognized tribes. The application for SEP funding is available here.
If you have questions about Washington's State Energy Program or other renewable energy issues, or would like to discuss the possibility of your project applying for this or other government funds, please contact:
David Benson at (206) 386-7584 or dlbenson@stoel.com
Janet F. Jacobs at (206) 386-7582 or jfjacobs@stoel.com
J. Graham Noyes at (206) 386-7615 or jgnoyes@stoel.com
John Laney at (206) 386-7559 or jslaney@stoel.com
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