Maryland Strategic Energy Investment Fund

93 Pages·2015·2.33 MB·English

by  David Beugelmans

M aryland S trategic
Energy Investment
Fund
Report on Fund
Activities
FY 2014

prepared by the
Maryland Energy
Administration
INTRODUCTION

The Maryland Energy Administration (MEA) has been following its mission to promote
affordable, reliable and clean energy using monies from the state Strategic Energy
Investment Fund (SEIF). MEA’s programs help reduce household bills, create new jobs in
the energy sector, address global climate change, and promote energy independence. In
addition to MEA, funds from the SEIF are allocated to a variety of other entities in the State
to perform important energy- and climate-related work. A breakdown of the FY14 SEIF
allocation is provided in the pie chart below.

FY 2014 SEIF Allocation DBM State Agency
Loan Repayments
4%
Electric Vehicle Tax
Public Service Credits
Commission 1%
1% DHR Low Income
Bill Payment Electric Vehicle
41% Charging Equip Tax
MDE Climate
Credit
Change Programs
1%
3%
MEA Programs
Offshore Wind
DGS - Salaries 37% Program
0% 5%
DHCD
Weatherization Customer
Program Investment Fund
1% Program
6%

The SEIF is comprised of a variety of funding sources. The main source is proceeds from
Regional Greenhouse Gas Initiative (RGGI) auctions. The fund also includes income from
the Exelon-Constellation merger settlement (the Offshore Wind Development Account and
the Customer Investment Fund, or CIF), Alternative Compliance Payments from entities
that are required to comply with the State’s Renewable Portfolio Standard, and a few other
minor sources of funding. Appendix A to this document details all sources for amounts
received by the fund, along with a detailed accounting of disbursements from the fund. This
attachment also includes details on RGGI auctions, including the number of allowances
sold, allowance prices, and estimated future revenues.

A detailed description of the activities funded through the SEIF is provided on the following
pages. Additional detail on the programs and projects listed below can be found on MEA’s
website, through the Strategic Energy Investment Map located at
www.energy.maryland.gov/map. Using the map, interested parties can view individual
projects that MEA has helped to fund in their neighborhood. The map also shows
investments by zip code, county, and legislative district and by technology or sector served.
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The map supplements other transparency efforts that MEA makes. Annually, MEA provides
a report on all disbursements over $25,000 to the Department of Budget and Management
(DBM), which publishes the data on its Funding Accountability website. MEA also publishes
a list of open and historic residential and commercial Clean Energy Grant Program awards
(its largest program, by number of grants), and issues press releases when awards are
made for many of its competitive programs. Appendix B to this document details FY14
grantees with their respective award amount.

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MEA PROGRAMS
A. EmPOWER Clean Energy Communities Low-to-Moderate Income Grant
Program

SEIF Budget: $9.6 million

Beneficiaries

Non-profits and local governments receive funding from this program to implement energy
efficiency measures that benefit low-to-moderate income Marylanders. Examples of past
awardees include non-profits (e.g., Habitat for Humanity affiliates), Community Action
Councils, Housing Authorities, and county and local governments.

Description

The EmPOWER Clean Energy Communities grants are competitively awarded to energy
efficiency projects that generate significant energy savings, with the benefits of the energy
savings being passed on to Maryland’s low-to-moderate income residents. Priority is given
to projects that maximize energy savings and the number of low-to-moderate income
residents that benefit from the measures. Through FY13, MEA allocated grant funds to each
county formulaically based on county income levels and then evaluated applications
competitively on a county-by-county basis, ensuring a fair distribution of funds across the
State. In FY14, the same county-by-county approach was used for a portion of the funds,
but with remaining funds the program was expanded to also include a statewide
competition for larger projects that would help communities, neighborhoods, or entire
buildings take advantage of economies of scale. So far, over 2,200 houses, apartments, and
buildings have received energy efficiency upgrades through this program. Past projects
include residential whole building upgrades where an audit identifies and recommends
cost effective energy measures while detecting and ameliorating health and safety
concerns, energy efficiency improvements to homeless shelters, and HVAC upgrades.

Projects funded by FY14 grants are still being installed by grantees. While the annual
savings estimates shown below only reflect energy measures installed to date, final FY14
energy savings are expected to be higher once all projects are complete. The summary
report below shows total project savings, including energy savings from some energy
measures that may be benefitting from other funding sources such as utility incentives.

Program Accomplishments

Fiscal Year FY14
# of grants 60
Annual savings (kWh) 1,984,768
Annual savings (MMBTU)* 13,597
*Includes: Natural Gas, Propane, #2 Fuel Oil

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B. Clean Energy Grant Program

SEIF Budget: $8.3 million

Beneficiaries

Beneficiaries include homeowners, businesses, nonprofits, and State and local government
entities that install renewable energy systems.

Description

MEA’s Clean Energy Grant Program (CEGP) is designed to support renewable energy
installations across the State of Maryland. The Clean Energy Grant Program provides
incentives for solar photovoltaic, solar water heating, geothermal heating and cooling, and
wind energy systems. Beginning in FY14, the program also included incentives for
commercial-scale solar photovoltaic canopy systems that include charging for electric
vehicles and community wind projects. Incentive levels are established based on the size
and type of the renewable energy system. The number of grants processed as part of the
CEGP program highlights the success of the program. It should be noted that some of the
larger commercial scale projects funded in FY14 are still being installed. Savings and
capacity estimates for these projects are included in program details below, but are subject
to change.

Program Accomplishments

Fiscal Year FY14
# of grants 2,444
Annual savings (kWh) 31,730,312
Solar PV Capacity (kW) 15,490
Solar Thermal Capacity (SF) 17,365
Geothermal Capacity (Ton) 2,319
Wood Stove Capacity (btu/hr) 28,511,776
Solar PV Canopy Capacity (kW) 5674
Wind Capacity (kW) 752

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C. Maryland Smart Energy Communities

SEIF Budget: $4.5 million

Beneficiaries:

Local incorporated governments (towns, cities and counties) benefit from this program.
Examples of Maryland Smart Energy Communities participants include cities such as
Bowie, Salisbury, Frostburg, and Bladensburg, and counties including Harford, Talbot, and
Anne Arundel.

Description:

The goal of the Maryland Smart Energy Communities (MSEC) program, which was first
offered in FY13, is to have local governments adopt energy policies and commit to them for
the long term, leading to sustained energy savings and additional opportunities for
renewable energy development. Once adopted into the program, MEA provides a limited
amount of grant funding to help a local government pass energy goals and develop an
energy baseline. Once the local government has successfully adopted two out of three
policies (in energy efficiency, renewable energy, and/or transportation), it can leverage
additional grant funding to assist with an energy project that helps achieve its MSEC goal.
Maryland Smart Energy Communities reduce energy costs, improve environmental
performance, and stimulate energy awareness among their residents and local businesses.

A full list of the MSEC communities that have adopted and committed to energy policies is
below.

Aberdeen Forest Heights North Beach
Anne Arundel County Frederick Prince George's County
Baltimore City Frederick County Princess Anne
Bladensburg Frostburg Ridgely
Boonsboro Garrett County Rock Hall
Bowie Glenarden Rockville
Cambridge Greenbelt Salisbury
Capitol Heights Greensboro Seat Pleasant
Cecilton Harford County Somerset
College Park Highland Beach Takoma Park
Cottage City Hyattsville Talbot County
Denton Landover Hills Taneytown
District Heights Manchester Thurmont
Easton Millington University Park
Edmonston Montgomery County Westernport
Emmitsburg Mount Rainier Westminster
Federalsburg

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Program Accomplishments

MSEC now has a total of 49 communities participating in the program, 40 of which received
grants in FY14. Twenty-one grantees returned from the previous year.

Fiscal Year FY14
# of grants 40
# of grants to municipal governments 32
# of grants to county governments 8
# of energy efficiency policies adopted to date 47
# of renewable energy policies adopted to date 39
# of transportation policies adopted to date 19

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D. EmPOWER Maryland Challenge: Commercial and Industrial Grant Program

SEIF Budget: $4.6 million

Beneficiaries

The Commercial and Industrial (C&I) Grant Program offers financial incentives to the
commercial and industrial building sector. Program participants include warehouses,
manufacturers, hospitals, and religious facilities.

Description

Maryland’s commercial and industrial electricity consumption represent approximately 60
percent of the overall retail electricity sales in the State, but just about 30 percent of the
energy efficiency savings realized through the EmPOWER Maryland program to date. A
new program in FY14, the C&I Grant Program resulted from the recognition that the
commercial and industrial sectors still had significant opportunities to save energy. The
C&I Grant Program provides competitive grants to commercial and industrial applicants to
install energy efficiency measures that achieve deep reductions in total building or space
electricity usage. Grants cover a portion of the total project cost after utility incentives and
other leveraged funds are applied.

Program Accomplishments

This program requires applicants to leverage EmPOWER Maryland incentives wherever
possible. Some projects funded through this program have long lead times and many are
therefore still being installed. FY14 annual savings estimates below reflect the projections
of the electricity reductions that are anticipated to accrue from program-funded projects,
but are subject to change. The summary report below shows anticipated total project
savings, including energy savings from any energy measures that may be benefitting from
other funding sources, including utility incentives.

Fiscal Year FY14
# of grants awarded 24
Annual savings (kWh) 21,700,455 kWh

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E. Kathleen A. P. Mathias Agricultural Energy Efficiency Program

SEIF Budget: $1.0 million

Beneficiaries

The program benefits farms and businesses in the agriculture sector.

Description

The Kathleen A. P. Mathias Program offered its second round in FY14, having been piloted
using federal Recovery Act funds in FY13. The program is designed to highlight cost-
effective energy improvements in the agriculture sector. The program focused on energy
efficiency upgrades that could save 20 percent or more of a building’s energy needs.
Examples of funded projects include upgrades to grain dryers, poultry houses, lighting, and
motors.

Program Accomplishments

This program has demonstrated that cost effective deep retrofits are entirely possible in
Maryland’s agriculture sector. Through the program, MEA creates case studies and shares
information on the projects, giving farms and businesses in the agriculture sector a local
example and helping them to make informed decisions about pursuing similar upgrades on
their own. MEA shares the case studies and project examples on the program website and
through other venues, including the Public Service Commission, Horse Stewardship
Council, the University of Maryland’s Department of Agriculture and Resources Economics’
Annual Agricultural Outlook and Policy Conference, and other agriculture industry
stakeholders. The overall goal of the program is to highlight best practices and cost-
effective retrofit opportunities.

Some projects funded by FY14 grants are still being installed by grantees. The annual
savings estimates shown below are based on initial audit estimates. FY14 energy savings
will be finalized as part of the project close-out process once all measures are installed.

Fiscal Year FY14
# of grants 13
Annual savings (kWh) 728,278
Annual savings (MMBTU)* 9,204
* Includes: Propane, Natural Gas, and Diesel

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F. Net Zero Schools

SEIF Budget: $2.0 million

Beneficiaries

The program benefits new public schools being constructed in the Baltimore Gas and
Electric service territory. In the first year of the program, two local education agencies
signed on to participate in this program. Howard County’s new Wilde Lake Middle School
and Baltimore City’s new Graceland Park/O’Donnell Heights Elementary and Middle School
are both being designed and will ultimately be constructed to achieve net zero energy
status.

Description

Through this Customer Investment Fund (CIF) program, three new public schools located
within the BGE service territory will be designed and constructed with the goal of achieving
net zero energy usage. This program will help fund the incremental cost of design and
construction for the participating schools. FY14 is the first year of the program.

Program Accomplishments

Since new school design and construction is a multiyear process, no energy savings or
generation benefits will actually accrue until the new schools are constructed and occupied.
However, there are estimates of program impact that are available now. While design is
still being finalized, one of the new schools being funded is estimated to have an energy
usage intensity (energy usage per square foot) of 62 percent less than the existing school it
is replacing.

Fiscal Year FY14
# of grants 2

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