NORTH CAROLINA’S GREEN ENERGY ECONOMY CONTINUES RAPID GROWTH, DESPITE RECESSION

RALEIGH, NC – The North Carolina Sustainable Energy Association (NCSEA) has released the 2009 North Carolina Renewable Energy and Energy Efficiency Industries Census, which identified 10,250 green energy jobs in all 100 counties of North Carolina. The annual report was released at NCSEA’s forum, “Growing North Carolina’s Green Energy Economy: Learning, Connecting & Creating Opportunities Together,” which was held at the Charlotte Convention Center on Friday, October 9 with close to 400 attendees from across the state. Click here to download the full report.

Earlier this summer, NCSEA identified and surveyed 1,136 firms potentially meeting these criteria. The firms largely represented businesses, but several state agencies, education outfits, and non-profits were also included. A total of 548 firms met the qualifications and responded to the census’ 23 questions. Another 110 firms indicated they did not meet any of the qualifying criteria.

The 2009 report estimates that the renewable energy and energy efficiency industries employ 10,250 full-time equivalent employees across a broad supply chain in North Carolina. Manufacturers support the greatest percentage of employees – 23% of the reported jobs were with firms that identified manufacturing as most important to their business.

NCSEA estimates that renewable energy and energy efficiency industries generate more than $3.5 billion in annual revenue from North Carolina activities, with the industries maintaining a presence in all 100 North Carolina counties. 

Wake County is leading the state’s green energy economy due to its 141 firms reporting a presence. Mecklenburg County ranks second with 99 firms and Buncombe County ranks third with 57 firms. NCSEA defines a “presence” as having a headquarters, satellite office, manufacturing facility, or remotely located employees. The Research Triangle Region supports 36% of the reporting firms’ headquarters.

More information is available by downloading the full report...



Click here to download the 2009 Renewable Energy & Energy Efficiency Industries Census.

Click here to download the press release announcing the 2009 Industries Census.

Click here for more information on the 2008 Renewable Energy & Energy Efficiency Industries Census.

More than 400 leaders from communities across North Carolina attended events at the Charlotte Convention Center on Oct. 8-9 focused on our state's Green Energy Economy. NCSEA hosted the events entitled, GROWING NORTH CAROLINA'S GREEN ENERGY ECONOMY: Learning, Connecting & Creating Opportunities Together.

Click here to view a slide show of photographs from the events. (Photographs taken by Andrew Whelan.)

Thursday evening's Networking Reception featured remarks by Amory Lovins, co-founder of the Rocky Mountain Institute, a highly-acclaimed author and one of our nation's leading voices on renewable energy technologies and energy efficiency solutions.

All day on Friday, October 9, NCSEA hosted a major Green Energy Economy forum, which included the organization's Annual Membership Meeting. The highlights of the day included the release of the long-awaited 2009 Renewable Energy & Energy Efficiency Industries Census, the election of NCSEA's 2010 Board of Directors and remarks by the luncheon keynote speaker John Morrison, North Carolina's new Assistant Secretary of Energy at the Department of Commerce. The forum also featured informational panel discussions, presentations, Q&A sessions, remarks by Charlotte's Mayor Pat McCrory, and the announcement of the 2009 sustainable energy awards.

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).

FEDERAL STIMULUS FUNDS: '1603' GRANT PROGRAM
U.S. Treasury now accepting grant applications

The US Departments of the Treasury and Energy will provide an estimated $3 billion for the development of renewable energy projects around the country and are currently offering guidance businesses will need to submit a successful application. Established under Section 1603 of the American Recovery and Reinvestment Act (Recovery Act), commonly known as the federal economic stimulus law, 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 the 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. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project's cost; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program will benefit companies that do not have federal tax liability and allows for an immediate stimulus in local economies.

The US Departments of Treasury and Energy expect a fast acceleration of businesses applying for the energy funds in lieu of the tax credit.

To learn more about this grant program, including the terms and conditions, a 20-page guidance document, and a sample application, or to submit your application, go to www.treas.gov/recovery/1603.shtml. If you have questions or need additional guidance, you can email 1603questions@do.treas.gov. This new website and web-based application for the 1603 program was launched on July 31, 2009, and the government is now accepting applications. The Dept. of Energy is also expected to offer a series of webinars in the coming weeks to better educate applicants about the grant program and how to apply.

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As we reported previously, the application is computerized and is completed and submitted online, at https://treas1603.nrel.gov/. The new '1603' website provides a sample application. Note: the electronic application “times out” in 60 minutes, therefore, it is recommended that you take advantage of the opportunity to print out the sample application and pencil in your answers before doing the online version.

The Treasury has a complex rule for setting up a password for your account. Your password must be at least eight characters; it must begin and end with a non-numeric character; and it must include at least one capital letter, one lower-case letter, one number, and one symbol. For example, AbCDEFG2 will not work (no symbols, and it ends in a number), but ABCD12EF;g will.

Applications with a credit eligible basis of $500,000 or more require “an independent accountant’s certification attesting to the accuracy of all costs claimed as part of the basis of the property.” The Treasury has provided two forms for certification. The first form (for “Mid-Sized Certification”) is for projects with a basis of $500,000 to $3,333,333 (i.e., claiming a grant of less than $1 million), and the second form (for “Large Certification”) is for projects with a higher basis (i.e., claiming a grant of $1 million or more). Remember that smaller projects (with a basis of under $500,000) do not need an accountant’s certification at all.

The Treasury has provided language for the accountant’s letters. Both refer to “Section V” of the guidance, which provides very limited rules about computing basis. While the Large Certification is based on attestation standards established by the American Institute of CPAs (AICPA), including “examining evidence supporting management’s assertion,” the Mid-Sized Certification is done in accordance with “agreed-upon procedures” (AUP), and specifically relies on management to report costs and determine the eligible basis for the property.

Attached to the Mid-Sized Certification language is a four-page “agreed-upon procedures and findings,” no doubt intended to assure that an accountant providing certification of a mid-sized project is aware of the general rules that apply to computing the basis of energy property. While most of the rules are unsurprising, one stands out:

“Other federal grants, state grants, or rebates reduce the cost basis.”

This is unexpected, because most advisors treat most grants and rebates, at least in a commercial context, as taxable income, with the resulting expenditures being included in basis. Yes, there are exceptions (e.g., Section 136 of the Code applies to certain energy conservation subsidies provided by utilities with respect to dwelling units), but the rules are certainly not as obvious and consistent as to always cause a reduction in cost basis. Furthermore, this rule does not appear elsewhere; for example, it does not appear in the aforementioned Section V of the guidance.

The Treasury has also provided rules for assigning the 1603 payment. Payments can be assigned if (i) they are $1,000 or more; (ii) the assignee is a bank, trust company, or other financing institution, including any federal lending agency; (iii) the assignment covers all amounts payable; (iv) the payment is not further assignable except where the recipient is the agent or trustee for multiple parties who are participating in the financing; and (v) a written notice of assignment is filed with the Treasury, using the provided form. The reference to “other financing institution” leaves unanswered questions—for example, can an individual be an assignee? Perhaps if he or she is in the business of lending money.

(Source: US Department of Treasury and Energy; NCSEA; Nixon Peabody; and other sources)

NCSEA's Networking Reception & Fundraiser in Charlotte on June 23 was a huge success! The reception brought together over 250 of the Charlotte region's top energy, economic development, finance and community leaders who are playing a leading role in developing our clean energy economy, as well as NCSEA's policy and market development experts, local elected officials, representatives of state and local government agencies, educational institutions, community organizations, legal experts, and other supportive citizens. 

Due to overwhelming support by attendees who bought tickets and our gracious Sponsors and Partners, NCSEA is close to meeting our $20,000 fundraising goal for our new Charlotte Regional Energy Leadership Fund. The funds raised at this event will allow NCSEA to increase our work in the Charlotte region, hire a part-time staff member (based in Charlotte), and ensure North Carolina becomes one of the top sustainable energy markets on the East Coast.

Click here for more information.