 Show Me the Money: DOE Announces $256 Million Investment to Improve Energy Efficiency of the American EconomyJun 11, 2009 - Stoel Rives, LLP On June 1, 2009, the Department of Energy ("DOE") announced plans to deploy $256 million from the American Recovery and Reinvestment Act ("Recovery Act") to be used to improve the energy efficiency of the American economy. Three recent DOE Funding Opportunity Announcements ("FOAs") have been issued in conjunction with this Recovery Act announcement. Additionally, a related FOA has been announced using funds appropriated outside of the Recovery Act. The recently announced funding will support projects in three areas: (1) sustainable energy infrastructure and energy efficient industrial technologies, (2) improved energy efficiency for information and communication technology and (3) advanced materials in support of clean energy technologies and energy-intensive processes. Background The Recovery Act was enacted to create jobs and restore economic growth through measures that modernize the nation's infrastructure, enhance America's energy independence, expand educational opportunities, preserve and improve affordable health care and provide tax relief. FUNDING OPPORTUNITY ANNOUNCEMENTS FOA #1: Combined Heat and Power Systems, District Energy Systems, Waste Energy Recovery Systems and Efficient Industrial Equipment The goal of this FOA is to solicit applications for cost-shared sustainable energy infrastructure projects and projects that further energy efficient industrial technologies. To further this goal, $156 million is being deployed over four areas. DOE anticipates making up to 72 awards to fund (1) combined heat and power systems, (2) district energy systems, (3) industrial waste energy recovery systems and (4) efficient industrial equipment. Eligible applicants include domestic entities, state and local governments, and Indian tribes. Collaborative teams may apply, but the efforts of Federally Funded Research and Development Centers and National Laboratories are not normally includable in the award to successful applicants.
Combined heat and power systems are integrated systems that generate electric energy and heat with a thermal efficiency of 60% or greater. DOE anticipates the issuance of up to 30 awards to stimulate the deployment of commercially available combined heat and power systems. DOE will fund a variety of projects under this topic area. Projects may include single installations or multiple installations at multiple sites, and may be of multiple sizes or types. Consequently, individual project awards are expected to range from $1 million to $60 million and will be subject to 50% applicant cost sharing.
District energy systems provide thermal energy from a renewable energy source, thermal energy source or highly efficient technology to more than one building through a system of pipes. District energy systems provide space heating, space conditioning, hot water, steam, compression, process energy and other uses. DOE anticipates the issuance of up to four awards to stimulate the deployment of district energy systems. Projects may include single installations or multiple installations at multiple sites, and may be of multiple sizes or types. Consequently, individual project awards are expected to range from $10 million to $60 million and will be subject to 50% applicant cost sharing.
Waste energy recovery systems collect and reuse energy from sources such as exhaust heat, flared gas, waste gas or industrial tail gas from any industrial process. DOE anticipates the issuance of up to 30 awards to stimulate the deployment of commercially available waste energy recovery systems. DOE will fund a variety of projects under this topic area. Projects may include single installations or multiple installations at multiple sites, and may be of multiple sizes or types. Consequently, individual project awards are expected to range from $50,000 to $60 million and will be subject to 50% applicant cost sharing.
Efficient industrial equipment includes technologies and systems with a minimum efficiency improvement of 25% into the industrial sector. DOE anticipates the issuance of up to eight awards to stimulate the deployment of commercially efficient industrial equipment projects. Multiple projects must be bundled into a single application. Individual awards are expected to range from $10 million to $100 million and will be subject to 50% applicant cost sharing. Applications under this FOA are due by July 14, 2009. FOA #2: Combined Heat and Power Systems Technology Development and Demonstration The goal of this FOA is to solicit applications for cost-shared research, development and demonstration projects for combined heat and power applications. Eligible projects will further the DOE goals of reducing natural gas consumption, expanding combined heat and power use, and lowering U.S. carbon intensity. To further this goal, $40 million is being deployed over four areas. DOE anticipates making up to 30 awards to fund the research, development and demonstration of small systems producing under 5 kW to large systems producing greater than 20 MW. As such, individual awards are anticipated to range from $500,000 to $10 million. Applicant cost share will range from 30% to 50%. Eligible applicants include domestic entities, state and local governments, and Indian tribes. Collaborative teams may apply, but the efforts of Federally Funded Research and Development Centers and National Laboratories are included in calculating the government share of the project. Applications for this FOA are due by July 7, 2009. FOA #3: Energy Efficient Information and Communication Technology The DOE recognizes that our nation's telecommunications and data centers are consuming energy at an alarming rate. The ever-increasing scale of the telecommunications and information technology industries has led to challenges with respect to the power usage of microprocessors, servers, and supporting power and cooling systems. This FOA provides $50 million to develop new technologies to curb the energy demands of this sector. The DOE anticipates making up to 15 awards of up to $10 million each. Eligible research projects must develop new technologies that dramatically improve energy efficiency in the telecommunications and information technologies industries. These technologies must also have the ability to be commercialized within the next three to five years. Eligible applicants are collaborative teams comprised of members experienced in research and development, manufacturing, sales, and marketing. Each team must also have at least one member which is an end user capable of demonstrating the proposed technology. Teams members may include domestic entities, state and local governments, and Indian tribes. A website has been created to assist in the creation of collaborative teams. Applications for this FOA are due by July 21, 2009. FOA #4: Industrial Energy Efficiency Grand Challenge The goal of this FOA is to fund cost-shared development of transformational industrial processes and technologies. A process or technology is transformational if it reduces energy intensity or greenhouse gas emissions by a minimum of 25% while providing a return on investment of 10% or greater. Eligible projects must be associated with the nation's most energy-intensive industries including:
Eligible applicants include domestic entities, Federally Funded Research and Development Centers, National Laboratories, state and local governments, and Indian tribes. Collaborative teams are encouraged. Federally Funded Research and Development Centers and National Laboratories may not be the prime recipient of any award. For this FOA, a letter of intent must be submitted by June 15, 2009, and full applications are due by July 14, 2009. If you have questions about any of these funding opportunity announcements or other renewable energy issues, or would like to discuss the possibility of your project applying for these or other government funds, please contact: Seattle, Washington Portland, Oregon Minneapolis, Minnesota Boise, Idaho 
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