Palo Alto will get $663,000 in federal energy efficiency funding from the American Recovery and Reinvestment Act, U.S. Rep. Anna Eshoo, D-Palo Alto, announced Thursday.

The funds will go to improving energy efficiency and reducing total energy use and fossil-fuel emissions.

"Investments in energy efficiency and reducing our total energy use are essential and with these block grants communities will pursue the cleanest and most efficient energy sources," Eshoo said.

"Green jobs will be created, stimulating local economies, while laying the foundation for a long-term commitment to conservation and clean energy."

City Manager James Keene said he was delighted to receive a call from Eshoo Thursday morning, informing him of the funds. In the next few weeks, city officials will discuss how to best use the money.

"I think this is a great benefit to our community," Keene said. "We are, of course, leaders as a green community and we are doing many, many things on the supply side to keep that going."

"Everything we do on conservation and energy efficiency will just ratchet up the good things we will do for our community and for the planet."

Keene could not say exactly which energy-efficiency projects the city will pursue with the federal funds. But the Utilities Department has been reviewing a number of programs that could potentially be included in a grant application.

These include a revolving-loan program to help businesses implement energy-efficiency projects; subgrants to local schools, city facilities and community agencies to implement energy-efficiency projects; and expansion of the city's residential energy-efficiency program, which includes such components as weatherization, energy audits and appliance exchange.

The city has until June 25 to come up with specific projects and apply for the federal funds, he said.

Other cities on the Peninsula also stand to benefit from the federal-stimulus funds. Mountain View will receive $719,000, Redwood City will receive $736,000, and Sunnyvale will receive $1,292,000. San Mateo County, meanwhile, will receive $2,951,200.

The city's press release follows:

March 26, 2009
Contact:
James Keene
City Manager

For Immediate Release, City of Palo Alto (650) 329-2563

City of Palo Alto to receive $663,000 in Energy Efficiency Funding from American Recovery and Reinvestment Act

Palo Alto, CA -- City officials learned today that Palo Alto will receive $663,000 in economic stimulus funds for eligible energy efficiency and conservation programs. Vice President Joe Biden and Energy Secretary Steven Chu announced plans to invest $3.2 billion in the Energy Efficiency and Conservation Block Grant (EECBG) program allocations through the American Recovery and Reinvestment Act (ARRA) of 2009.

"Investments in energy efficiency and reducing our total energy use are essential and with these block grants communities will pursue the cleanest and most efficient energy sources. Green jobs will be created, stimulating local economies, while laying the foundation for a long-term commitment to conservation and clean energy," said Representative Eshoo. "This is great news and a compliment to our Congressional District that is leading in energy efficient policies."

"Representative Eshoo has proven to be a strong advocate for long-term commitment to conservation and clean energy in the country, and Palo Alto continues to benefit from her advocacy," said Mayor Peter Drekmeier. "Through her continued support, we can improve Palo Alto's overall energy efficiency and reduce its carbon footprint, while helping the City and community save money on energy," Drekmeier added.

The City has begun reviewing programs for inclusion in the grant application such as a offering a utility-financed revolving loan program to help businesses implement energy efficiency projects ($250,000), providing subgrants to local schools, City facilities and community agencies to implement energy efficient projects ($250,000), and expanding current residential energy efficiency program offerings such as weatherization, energy audits and appliance exchange ($100,000). The City will compile and evaluate project ideas before submitting an EECBG application by the June 25, 2009 filing deadline.

"We are thrilled to be allocated $663,000 in energy efficiency and conservation funding from the stimulus package to locally grow a 'green' economy," said City Manager James Keene. "We have been a leader in pursuing renewable energy sources and making our utility energy portfolio more carbon free. After increasing our renewable energy purchases, improving energy efficiency in the community is the next important and complimentary step to take. This is truly a win-win for us all."

The EECBG program was created by Congress in 2007 and this is the first time there has been an appropriations of funds. The EECBG Program is administered by the Office of Weatherization and Intergovernmental Programs in the Office of Energy Efficiency and Renewable Energy of the U.S. Department of Energy (DOE). DOE just released the allocations, funded through direct formula and state grants. A detailed breakdown of the funding by state, county, city and tribal government is available on the DOE Recovery Act web site at http://www.energy.gov/recovery/

Palo Alto has provided an array of efficiency and renewable energy programs to the community for over 30 years. Local businesses can qualify for energy efficiency rebates for new and existing buildings and equipment and incentives to install cogeneration and renewable power facilities. Residents are eligible for energy efficiency rebates for appliances, furnace and boiler replacements, water heaters, home insulation and pool pumps, as well as to dispose of older, energy wasting refrigerators. Low income customers can have appliances, lighting, and furnaces replaced at no charge. Palo Alto residents and businesses can support renewable energy purchases by enrolling in PaloAltoGreen, and renewable energy rebates are available for photovoltaic and solar water heating system installations.
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— Don Kazak and Gennady Sheyner