State Energy Program (SEP)



Amount Available: $3.1 billion, nationally
California Energy Commission Allocated: $226 million

California has received $226 million in federal American Recovery and Reinvestment (ARRA) funds for the State Energy Program (SEP). California's SEP is focused on increasing energy efficiency to reduce energy costs and consumption, cut reliance on imported energy, and shrink energy impacts on the environment.

The California Energy Commission is administering the state's SEP and has currently allocated funds in these areas:

• FUNDS SPENT ($70 million)
  • Department of General Services ($25 million)
    Energy Efficient State Property Revolving Loan Program
  • Energy Conservation Assistance Act (ECAA) 1% Low Interest Loans ($25 million)
  • Green Jobs Workforce Training Program ($20 million)
• FUNDS IN PROCESS ($130 million)
  • Energy Efficiency Program ($95 million)
  • Clean Energy Systems Program ($35 million)
    (Guidelines being developed)
• REMAINING FUNDS ($26 million)
• Federal SEP Guidelines

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Energy Efficiency Program ($95 million)

To promote economic vitality and build a clean energy workforce, the Energy Commission is providing up to $95 million in State Energy Program (SEP) funds for energy programs focused on existing residential and commercial building energy efficiency (and water efficiency) retrofits. Onsite solar electric generation may be eligible if installed in conjunction with energy efficiency measures. Local jurisdictions, non-profits or private organizations can create partnerships and apply for program funding under a competitive solicitation process for three different areas: the California Comprehensive Residential Building Retrofit Program, the Municipal and Commercial Building Targeted Measure Retrofit Program, and the Municipal Financing Program.

California Comprehensive Residential Building Retrofit Program
This program will fund regional consortia of local governments, utilities, community colleges, national and state energy and affordable housing programs, and public and private energy and building contracting experts in regions throughout the state to provide a comprehensive set of home and multifamily residential energy efficiency retrofits, from simple improvements using straightforward checklists to deeper, comprehensive whole house retrofits employing home energy raters and building performance contractors. Each regional program must provide certain program elements specified by the Commission.

Municipal and Commercial Building Targeted Measure Retrofit Program
This program will fund public and/or private partnerships that will mass implement a few, targeted best practices measures in a large number of municipal and/or commercial buildings throughout California. The intent of the program is to transform the market for these targeted measures through widespread, replicated retrofits and broad communication to the public of their energy and non-energy benefits to raise consumer awareness and contribute to California's continual leadership in energy efficiency. Each program partnership must implement targeted retrofits approved by the Commission.

Municipal Financing Program
This program will fund eligible public agencies to develop or continue implementing financing programs for energy efficiency improvements in residential and commercial buildings where building owners contractually agree to repay the financing through property tax assessments (often referred to as AB 811-style programs). The public agencies will be provided funding for certain uses specified by the Commission, such as program start-up and ongoing costs, interim financing, interest rate buy-down, and property owner rebates. Each program will be required to provide financing to enable the California Comprehensive Residential Building Retrofit and Municipal and Commercial Building Targeted Measure Retrofit Programs, as well as for other measures proposed by the public agency.

California SEP Energy Efficiency Program Guidelines

SEP Solicitations

Become an SEP Partner

Low-Interest Loans

You might be eligible to combine an SEP award with a 1% or 3% Energy Efficiency Loans from the Energy Commission's Energy Conservation Assistance Account Program (ECAA).

BE READY TO RECEIVE ARRA FUNDS

Information on Complying with Single Audit Act

If you are a public entity expecting to receive and use any federal funds, you must comply with the Single Audit Act and Office of Management and Budget (OMB) Circular A-133.

How to Comply with the Single Audit Act (PDF file)

State Controller's Office, Division of Audits
Local Government Compliance List

Download State Controller's Office (SCO) Compliance Status Report, updated 11/16/09. (PDF file, 22 pages, 44 kb)

The above report categorizes local government entities into the following:

• EXEMPT: Entities listed on this report are exempt from having to submit a Single Audit Reporting Package.
• NO REVIEW: Entities listed on this report have submitted a complete Single Audit Reporting Package; however the SCO has determined that no review of the report is warranted because no federal funds passed through a state agency.
• ACCEPTED: Entities listed on this report have submitted a complete Single Audit Reporting that has been reviewed and certified for compliance. These entities have received a Single Audit Certification Letter and distribution CDs containing report copies and certification letters have been distributed to all pass through state agencies.

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Clean Energy Systems Program ($35 million)

The $35 million Clean Energy Systems Program (CESP) is part of the State Energy Program. Guidelines for the CESP are currently being developed.

The CESP will provide low-interest loans and/or grants to eligible private sector businesses that:

1. Use biomass material to produce biomethane gas, or
2. Manufacture and/or assembly energy efficient or renewable energy products, systems, or technologies that are commercially available and "shovel ready."

The Energy Commission will release the draft CESP Guidelines soon and conduct a workshop in December 2009 to solicit input on the draft guidelines and the development of the CESP solicitation.

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Federal SEP Guidelines

California Energy Commission Application to the Department of Energy State Energy Program May 2009, publication # CEC-100-2009-001, posted May 5, 2009.
(Acrobat PDF file, 16 pgs, 96 kb)

Initial SEP Application to the Department of Energy from the Energy Commission, March 23, 2009.
(Acrobat PDF file, 2 pgs, 80 kb)

Released: 3/12/2009
Initial Application Due Date: 03/23/2009 at 8:00:00 PM Eastern Time
Comprehensive Application Due Date: 05/12/2009 at 8:00:00 PM Eastern Time

U.S. DOE - FINANCIAL ASSISTANCE FUNDING OPPORTUNITY ANNOUNCEMENT: State Energy Program Formula Grants; American Recovery and Reinvestment Act (ARRA); Funding Opportunity Number: DE-FOA-0000052; Announcement Type: Initial; CFDA Number: 81.041, State Energy Program. (Acrobat PDF file, 363 kb)

U.S. DOE - FINANCIAL ASSISTANCE FUNDING OPPORTUNITY ANNOUNCEMENT: State Energy Program Formula Grants; American Recovery and Reinvestment Act (ARRA); Funding Opportunity Number: DE-FOA-0000052; Announcement Type: Initial; CFDA Number: 81.041, State Energy Program (MS Word file, 457 kb)

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