State Energy Program (SEP)

The U.S. Department of Energy's State Energy Program (SEP) received $3.1 billion from the American Recovery and Reinvestment Act (ARRA) and will award funding to state energy offices through a formula-based allocation process.

Colorado will receive about $50 million in SEP funding to invest in energy efficiency and renewable energy projects over the next three years. The Governor's Energy Office (GEO), Colorado's state energy office, will receive this funding to implement its SEP plan. The GEO submitted its plan for this funding to the U.S. Department of Energy on 5/12/2009 and received approval for the plan on 7/17/2009. Read the summary of this plan here (PDF 251 KB). This work will create and retain jobs, save energy, bolster the use of renewable energy sources, reduce greenhouse gas emissions and strengthen Colorado's growing New Energy Economy.

The GEO will implement SEP funds to create the intended stimulus effect, but without creating a dependency. Put another way: the GEO will invest the dollars so that they build up and strengthen the infrastructure of Colorado’s New Energy Economy so when ARRA funding stops, the state’s new energy industry and markets remain on firm footing, ready to continue leading the state on the path toward an innovative, lower-carbon energy future when the economy recovers.

The GEO is currently preparing to launch programs funded with SEP dollars beginning in fall of 2009. The GEO will continue to add information about its SEP efforts on this Web site. In addition, all solicitations for funding will be announced to the GEO's newsletter list. To stay up to date on ARRA funding opportunities, sign up for the GEO newsletter.

What type of programs should you expect?

Here’s a glance at how the GEO will distribute SEP funds. More details about how you can benefit from ARRA SEP dollars will be announced to the GEO newsletter and posted here over the coming summer and fall.

• Residential building programs: The GEO’s Residential Program will use ARRA SEP funds to promote advanced energy codes, increase energy efficiency in new home construction and offer programs to help homeowners improve efficiency in existing homes, including a “whole house tune-up” that will bundle various energy saving incentives.
• Renewable energy programs: The GEO’s existing solar and wind incentive programs for residents and businesses will be expanded through ARRA SEP funds. These incentives are designed to complement existing utility incentives and create partnership opportunities while stimulating the renewable energy market and reducing demand on the utility grid. The GEO will also be spearheading a concerted effort to take advantage of Colorado’s geothermal production potential and expand micro-hydro development opportunities. The GEO will also partner with appropriate institutions to provide job training in various locations for those who want to design and install renewable technologies.
• Commercial building programs: The GEO’s Commercial Buildings Program focuses on existing buildings, as well as the high performance building of new commercial buildings. ARRA SEP funds will be directed toward the effective use of a strong energy performance contracting (EPC) industry in Colorado to maximize efficiency and job creation. The GEO’s high performance building program will achieve its goals through a combination of technical assistance to public agencies engaged in new construction and major renovation projects, as well as providing workshops and trainings and dissemination and development of tools and best practices.
• Public information and consumer outreach: The GEO will direct ARRA SEP funding toward streamlining information for Colorado consumers faced with trying to look for energy efficiency and renewable energy information amid 57 utilities, 271 municipalities and 64 counties, as well as changing state and federal programs and incentives. Easing access to such information will include a web strategy and a telephone hotline, as well as a comprehensive consumer outreach efforts.
• Finance/capital investments: Upfront costs can keep an individual or a business from making cost effective investments in energy efficiency and renewable energy simply because of a lack of financing options. The GEO will commit funds from the ARRA SEP allocation to provide a suite of products that will reduce financial barriers to renewable energy and energy efficiency. Programs will include grant programs to infuse ARRA funds into projects at the final stage of development and a revolving loan fund to provide low-cost capital for banks to provide short- and medium-term loans to consumers.
• Greening Government: An executive order signed by Gov. Ritter calls for state employees to take a position of leadership to reduce the environmental impact of state government operations. The GEO works closely with state agencies, colleges, and universities to help them achieve the Greening Government goals by 2012, and will set aside a small portion of ARRA SEP funds to continue that effort. Program goals include reducing petroleum usage by 25 percent, energy consumption by 20 percent, paper usage by 20 percent, water usage by 10 percent and diverting 75 percent of consumed materials from the waste stream.
• Utilities and transmission: The GEO will be conducting a set of major education and outreach activities involving climate policy, electric generation, and general energy profile data on state utilities. Gov. Ritter has issued the Colorado Climate Action Plan (CAP) which outlines a 2020 goal of reducing CO2 emission by 20% from the electric, transportation and industrial sector. The GEO will be developing a suite of products to create a strong vision for accomplishing the emission reduction goals in the CAP for utility customers, electric utilities and the Colorado legislature

What SEP Will Not Fund

According to the DOE, SEP funds cannot be used for the following:

• For construction, such as construction of mass transit systems and exclusive bus lanes, or for the construction or repair of buildings or structures,
• To purchase land, a building or structure or any interest therein,
• To subsidize fares for public transportation,
• To subsidize utility rate demonstrations or state tax credits for energy conservation or renewable energy measures, or
• To purchase equipment, conduct research, or engage in development or demonstration of energy efficiency or renewable energy techniques and technologies not commercially available.

Learn more about the DOE's State Energy Program here.