You asked for a description of programs in other states that help municipalities retrofit schools and other public facilities with renewable energy systems.

SUMMARY

At least seven states (Alabama, California, Massachusetts, Montana, New York, Rhode Island, and South Dakota), in addition to Connecticut, have programs that help municipalities retrofit schools and other public facilities with renewable energy systems.

Alabama offers zero-interest loans to local governments and schools in rural areas for renewable energy systems and energy efficiency improvements. California's Solar Initiative serves schools and local governments as well as the private sector and offers rebates based on system capacity for smaller photovoltaic (PV) systems and based on electricity production for larger systems. Massachusetts' Green Schools Initiative provides funding to help communities conserve energy and use clean energy technologies in schools. The state also offers loans to local governments and other entities to develop grid-connected renewable energy systems. Montana provides loans to local government agencies, among other entities, to install alternative energy systems that generate energy for the entity's own use. New York provides grants to fund wind and PV systems on municipal buildings. Rhode Island's Solar on Schools program provides participating school systems with a solar PV installation, as well as web-based data display on the system's performance. South Dakota's Wind for Schools program helps fund wind energy systems in schools.

Much of the information in this report comes from the Database on State Incentives for Renewables and Efficiency (www.dsireusa.org/) , which also describes renewable energy programs in Connecticut that are funded by the Clean Energy Fund (www.ctcleanenergy.com). As discussed in OLR Report 2007-R-0725, several of these programs are open to municipalities, e.g., the funds on-site generation program.

ALABAMA

In collaboration with PowerSouth (the state's electric cooperative) and U.S. Department of Agriculture (USDA) Rural Development, the state's Local Government Energy Loan Program offers zero-interest loans to local governments and schools in rural areas for renewable energy systems and energy efficiency improvements. Under the program, municipalities with populations of up to 50,000 and county governments with populations up to 100,000 may borrow up to $350,000 for eligible projects, and qualifying schools may receive up to $350,000 per campus or $500,000 per school system for eligible projects. Eligible renewable energy resources include biomass, hydropower, geothermal energy, wind energy, and solar energy. Further information about the program is available at http://adeca.alabama.gov/C3/Local%20Government%20Energy%20Loan%20P/default.aspx.

CALIFORNIA

The state's Solar Initiative serves schools and local governments as well as the private sector.  The program offers, for PV systems with a generating capacity of up to 50 kilowatts, $2.50 per watt for residential and commercial systems and $3.25 per watt for government entities and nonprofit organizations. In both cases the incentive is adjusted based on the system's expected performance. For larger systems, the program offers a Performance-Based Incentive of $0.39 per kilowatt-hour (kwh) for the first five years for taxable entities and $0.50 per kwh for the first five years for government entities and nonprofit organizations.

MASSACHUSETTS

Massachusetts' Green Schools Initiative, operated by the Massachusetts Technology Collaborative (MTC) and the Massachusetts School Building Authority (MSBA), provides funding to help communities conserve energy and use clean energy technologies to power school projects approved for construction by the MSBA.  MTC's Renewable Energy Trust is offering $15 million in grants to fund solar electric panels, wind turbines, and other clean energy technologies, as well as green building design and planning assistance, at schools that meet new guidelines for energy efficiency. The $15 million will be available through the initiative as design and construction grants to school districts approved for MSBA construction assistance. In addition to the MTC grants, MSBA will award qualifying communities up to an additional 2% of the approved, eligible project costs for verified high-performance “green” schools. Further information about the initiative is available at http://www.mtpc.org/rebates/green_schools.

MTC also operates the Clean Energy Pre-Development Financing Initiative, which offers loans to develop grid-connected renewable energy systems. Eligible technologies include wind energy, run-of-river hydropower, landfill gas, and several others. Funding is available for pre-development activities (e.g., facility design, environmental studies, permitting and similar activities). Funding is available to local governments and other public instrumentalities, among other entities and takes the form of an unsecured loan of up to $250,000 for wind and biomass projects, or up to $150,000 for other types of renewable energy projects. A minimum cost-share of 25% is required for all projects.

Biomass and wind-energy projects must have a minimum capacity of three megawatts (MW); hydroelectric and landfill-gas projects must have a minimum capacity of 250 kilowatts (kW). Projects must be designed to lead to the development of new renewable grid-connected generating capacity for the wholesale electricity market. Therefore, more than 50% of the renewable energy produced must be provided to the wholesale market.  Further information about this program is available at MTC's website, http://www.masstech.org/.

MONTANA

The state's Alternative Energy Revolving Loan Program provides loans to local government agencies, among other entities, to install alternative energy systems that generate energy for their own use. The program is administered by the Department of Environmental Quality and funded by air quality penalties collected by the department.  Alternative energy systems include geothermal systems, low emission wood or biomass, wind, photovoltaic, fuel cells that do not require hydrocarbon fuel, and small hydropower plants (under 1 megawatt). The maximum loan is

$40,000 (subject to available funds), payable over a period of up to 10 years. Interest rates are set annually and are fixed for the term of the loan. The rate for 2008 is 5.0%.  

NEW YORK

New York's Energy Research and Development Authority (NYSERDA) provides grants to fund wind and PV systems on municipal buildings. The incentives for wind systems vary depending on the size of the wind generation system, the tower height, and the class of customer, with municipal and county governments and schools receiving a bonus incentive rate. The incentives are paid to eligible installers that have been approved to participate in this program, who must pass on the entire incentive to the system's owner. Incentives are paid in two installments, with 65% of the incentive paid after the equipment is delivered to the installation site and all required permits, approvals, and certificates from all jurisdictions having authority have been secured. The remaining 35% is paid when the wind system is grid-connected and approved by the local utility. Further information about this program is available at www.powernaturally.com/Programs/Wind/OnSite_SmallWind.asp?i=8.

The solar electric incentive program provides cash incentives to municipalities and other eligible customers for the installation of new PV or other solar electric systems by eligible installers. The program was funded by a charge on electric bills of approximately $13.8 million through 2009, although all of this funding had been committed as of August 2008. (The New York Public Service Commission is considering authorizing additional funds.) In general, incentives for a typical system cover approximately 40-45% of the installed cost of a PV system.  For municipal and commercial systems, incentives may be combined with loan assistance from NYSERDA through the NY Energy $mart Loan Fund to the extent available.  Albany County and the towns of Greenburgh and New Paltz have been among the recipients of grants under this program. Further information about this program is available at http://www.powernaturally.com/Programs/Solar/incentives.asp.

RHODE ISLAND

The state's Solar on Schools Initiative provides participating school systems with a PV installation, as well as web-based data display on its performance. The data collection and display system allows teachers and students to access system performance data and use it in science classes or other curricula. Through this system, participating schools and other educational institutions can compare the operating results of their PV systems to that of other schools in the program. Each participating school receives: (1) a 2 kilowatt solar photovoltaic installation, including data acquisition and performance tracking system; (2) a data monitoring system; (3) energy curricula, including teacher training, mentoring, and course materials; and (4) internet access to the PV system output data of the schools and institutions participating in the program.

Most of the funding for the cost of the PV system and the educational support comes from the Renewable Energy Fund and the Office of Energy Resources. Participating schools must provide a nominal amount toward the cost of the program. Each school must identify a team of teachers from who have a strong interest in making the educational aspects of the program a success. Another requirement is that the PV panels themselves be sited in a location with a high degree of visibility for the community. Further information about this program is available at http://www.energy.ri.gov/programs/renewable.php.

SOUTH DAKOTA

In 2005, the U.S. Department of Energy and National Renewable Energy Laboratory established Wind for Schools, a program to encourage the use of wind energy in schools. In 2008, as part of this program, the South Dakota Public Utilities Commission selected school districts to participate in the program. One school in each of the selected school districts will receive a small (1.8 kilowatt) turbine and specific curricula. Half of the turbine's cost will be covered by the state and half by the local electric utility.

KM:dw