Governor Brewer Announces Arizona Among First Ten States to Receive Stimulus Funds for State Energy Plans

Press Release

Governor Jan Brewer today announced Arizona's State Energy Plan (SEP) under
the American Recovery and Reinvestment Act of 2009 has been approved by the U.S. Department of Energy. This means $22.2 million (or about 40-percent of Arizona's $55.4 million program) is on its way to the State's Energy Office at the Arizona Department of Commerce. This will enhance and
expand the SEP, which has been in existence for 30 years, focused on energy efficiency and renewable energy programs and projects. Overall, the program is expected to create more than 1,500 jobs for Arizonans.

"The SEP provides funding to effectively and efficiently make energy-related investments for Arizona's future," Governor Brewer stated. "It promises to create jobs, bring investment in emerging technologies, such as biofuels and improved photovoltaic systems, and advance school and public
building efficiency projects."

Arizona will use its SEP funding for a series of innovative programs aimed at advancing energy efficiency and renewable energy investments statewide.
Programs for Arizona schools and state buildings will utilize energy performance contracting to leverage $30 million in stimulus funding with private capital funding to achieve $150 million in energy efficiency and renewable energy projects. These energy performance contracts will reduce annual utility costs by $15.5 million for Arizona taxpayers.

Arizona will establish a revolving loan program in order to provide a sustainable financing mechanism for small business owners who are looking to fund energy efficient building improvements or install solar projects at their facilities. The state will offer revolving loan funds for energy efficiency
and renewable energy projects in commercial buildings, along with loans to manufacturers of renewable energy or energy efficiency equipment and technologies.

Additional programs will distribute $21 million in funding, grants and incentives to encourage energy efficiency and renewable energy projects statewide.
With today's approval, the Energy Office is in the process of establishing program guidelines. After demonstrating successful implementation of its plan, the state will receive an additional $27 million, for a total of $55.4 million.

The objective of the American Recovery and Reinvestment Act (ARRA) is to stimulate private investment, create jobs and speed economic recovery. One other energy application is in process.
The State's application for the Energy Efficiency and Conservation Block Grant (EECBG) Program will be filed before the deadline on June 25. EECBG provides local governments, Indian tribes, and other entities with funding to implement energy efficiency projects designed to reduce
energy usage.

Eligible projects include renewable energy installations on public buildings, improved
traffic signals and street lighting, and other public improvement projects.
Governor Brewer's Office provides updates on Arizona's ARRA applications and programs at www.azrecovery.gov.

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