Friends of Energy

Ten Things You Probably Didn't Know About the Energy Office - The Energy Office receives no state funding and no general funds are used to operate the Energy Office. Since 1992, the entire budget has come from Oil Overcharge funds, federal grants and/or local partnerships. No state money has been allocated to the Energy Office in the past decade. - Currently the Energy Office is managing over $5 million in federal grant money for various energy related programs and projects. . In Fiscal Year 2003, the Energy Office was able to secure $1,093,808 for Arizona projects. - The Energy Office publicizes grant availability and administers grants. Federal Grants awarded this Fiscal Year being administered by the Energy Office include: $800,000 to Pinnacle West for Hydrogen Power Park $75,000 to Tucson USD for Tucson Solar Schools. $100,000 for Teaching Energy Conservation. (Supports Implementation of Energy Codes in Tucson Metro Area and Southern Arizona Communities $25,000 for Tucson Regional Clean Cities Coordinator $48,808 to AZ Energy Office to Film New Solar in Arizona Documentary $45,000 to Energy Office for State Industries of the Future Program (IOF) which targets nine industries to help improve energy efficiency, productivity, and to manage waste. - The Energy Office also received $650,000 in grants for Fiscal Year 2003 to operate existing state energy programs. These grants require a 20 percent matching contributions which is provided by the Oil Overcharge monies. - The Oil Overcharge Funds are a finite resource and are quickly running out. Most recently, $8 million was swept from the Energy Office Oil Overcharge funds during the FY 2003 Special Session for functions related to the State Schools Facilities Board. Approximately $4 million remains and a majority of these funds have been targeted by the legislature to help offset general fund requirements for the State Schools Facilities Board budget. - The Energy Office Municipal Energy Management Program (MEMP) – Helps more than 80 Arizona Cities, Counties, Tribes and Water Districts (Under 70,000 Population) to Reduce Energy Costs. More than $150,000 in matching grants is awarded annually for projects ranging from lighting retrofits to replacing boilers and chillers. For every $1 spent in this program, an average of $2.2 in energy costs is saved annually. - The Energy Office, in partnership with Arizona utilities and home building industry members, offered 23 days of training in FY02 to over 500 attendees from the building trades industry. Innovations and techniques provided through trainings have played an integral part in the development, introduction and extensive use of the Environmental Protection Agency's Energy Star Program, as well as a number of other market driven programs, that guarantee a home's heating and cooling costs. The EPA Energy Star program requires a home must be 30 percent more efficient than the 1995 Model Energy Code. This equates to an energy cost savings for homebuyers of $400 a year. Of the 34,000 Energy Star homes built nationally in 2001, there were over 8,000 constructed in Arizona (Maricopa and Pima Counties). - The Energy Office was the state's lead agency in the Governor's Smart Energy Usage Campaign in the summer of 2001 and 2002. The campaign called upon state agencies to reduce energy usage. As a result of training and building audits, it is estimated that the state's conservation efforts reduced energy usage from 7 to 10 percent and saved the state $115,000 in utility bills during the summer of 2001 - A portion of the Oil Overcharge monies administered by the Department of Commerce go to a Revolving Energy Loans for Arizona (RELA) program. Loans are available to companies that either manufacture renewable energy, alternative energy, or energy conserving equipment or acquire such equipment for use in their own processes. In the past, loans have been made to help expand an Arizona wind turbine manufacturer and a solar collector manufacturer. - The Energy Office has conducted projects in every county in the state. Current efforts include performing audits and weatherization training in the Ak Chin Community.     To contact your state legislator click here. To contact the Governor, click here.

The Arizona Energy Office serves a vital role in the state's commitment to energy efficiency and renewable energy. However, the programs that encourage energy efficiency and renewable-energy usage and help reduce utility costs for Arizona schools, businesses and citizens may become victim to the state's fiscal crisis. The legislature is currently considering a proposal that may result in elimination of most of the programs administered by the Energy Office. Although the Energy Office receives no state funding, the proposal sweeps 97 percent of the Energy Office's remaining federal oil overcharge monies into the general fund for the State School's Facilities Board budget. The proposed Legislative sweep will jeopardize the state's access to new federal and partnership funding opportunities, force the Energy Office to reduce staff by two-thirds and eliminate most of its existing energy programs.   If the Arizona Energy Office loses its funding, it will send the message that Arizona is not serious about energy issues. To contact your state legislator click here. To contact the Governor, click here. Solar Project at Gray Wolf Landfill was partially funded by Special Project Grant in partnership with APS. Solar Pond Aerators at the Somerton Wastewater Plant were funded with a Municipal Energy Management Grant. The Tucson Solar Schools Project received major support from a Special Project Grant administered by the Energy Office. Because the State provides no general funds to the Energy Office, the Oil Overcharge Funds are the main source of funds available to the Energy Office for programs and match for federal special project grants. The Energy Office operates ongoing programs for energy conservation in municipal governments, low-income weatherization, solar energy, and a building education program aimed at the construction trades. In the past, Oil Overcharge monies have been used as match to obtain special grants to fund a series of solar design and installation workshops, perform energy audits in state buildings, conduct code training workshops, operate a solar education program targeting homeowner associations, and provide partial funding for the design and installation of a mini-grid photovoltaic system at Gray Wolf Landfill in Yavapai County. How Can You Help? How can I help? Call or email your Legislator and the Governor to voice your concerns about using the Oil Overcharge money to offset the deficit in the general fund. The Oil Overcharge money is essential to the operation of an effective and productive energy program for the State of Arizona. The purposed sweep of Oil Overcharge funds by the legislature will cripple the Energy Office. Not only will this sweep affect the State's ability to bring in federal money for energy related programs and projects, but without the Oil Overcharge monies the following programs will be severely impacted or eliminated: Weatherization Program Reduced No Municipal Energy Management Program for Small Communities No Energy Policy Function No Funding for Energy-Efficient Schools No Solar Information and Education Program No Funds For Energy Codes Training No RELA loan funds No Funds For Boards and Commissions (Solar Energy Advisory Council and Energy Codes Commission) No Participation at Western Interstate Energy Board (WGA affiliate) What message would this send to Arizonans and others: That Arizona Is Not Serious About Energy Issues. A decision to eliminate the major functions of the Energy Office could jeopardize other potential federal investments in Arizona. By sweeping the Oil Overcharge monies into non-energy programs, it would jeopardize the state's ability to attract federal grants. The elimination of programs would result in igher energy costs for schools, and state and municipal governments throughout the state. Facts and Info to Consider: Elimination of this resource at a time when energy consumption, costs, security, supplies, and knowledge about energy savings are paramount to attracting new businesses and retaining existing businesses -- does not make good business sense. Successful economic preservation as well as development is critically dependent on adequate, affordable, and secure energy supplies. A reduction in the functions of the Energy Office would deprive municipalities, school districts, businesses, universities, and communities throughout the state the opportunity to obtain assistance needed to identify, review and perform technical analysis of energy saving projects and grant opportunities. The legislative proposal would affect Arizona's position to participate in energy issues and policies affecting western states. At a time when energy issues have become extremely crucial to everyone, this severe reduction diminishes the Energy Office's ability to operate, and would force it to abandon many of its constitutents and partners who have joined with the office to assure that Arizona has adequate and affordable energy resources for the future. Oil Overcharge Background: The Oil Overcharge funds resulted from a federal lawsuit against major oil companies. The oil companies were ordered to pay into an escrow account that the federal government distributed to or for the benefit of injured parties in the United States, which included motor vehicle operators, electric utility customers, home heating oil customers, and other end-users of petroleum products. Pursuant to the guidelines established by the Department of Energy and the decisions of the federal courts, the Governor of Arizona is responsible for the allocation of these funds in Arizona. Each court case (primarily the Exxon, Stripper Well and Diamond Shamrock cases) and those that were settled through administrative hearings at Department of Energy's Office of Hearings and Appeals (OHA) have settlements with different strings attached. Several general rules state that primary program outcomes must be energy conservation or other energy-related benefits. In general, restitution must be linked to the aggrieved consumer, benefits must supplement, not supplant, existing sources of funds. Federal approval and reporting are required. Exxon oil overcharge funds are required to be spent in five federal energy conservation programs. No administrative expenses are allowed, and they may not supplant either state or federal funding. These five programs are: state energy conservation program, energy extension service, institutional conservation program, low income weatherization and low income home energy assistance program. They may not be used for capital expenditures for state government, except in the form of a loan for energy conservation items that may be repaid out of energy savings. Stripper Well funds are less restrictive and may be used in broader energy-related programs, including administrative expenses and partially allowable legal expenses. Diamond Shamrock funds follow restrictions similar to Stripper Well funds, except that legal fees are allowable expenses. The types of projects under these two funds generally can be categorized as transportation (like the fuel efficient traffic signal programs, highway traffic management program, car clinics and vehicle fleet maintenance programs), residential i.e., weatherization, retrofitting, tune-ups and energy audits and commercial i.e., energy loans, audits and cogeneration.

Friends of Energy is a separately registered trademark representing citizen concern with state government's role in Arizona energy. Contact - Mike Pasqualetti of the Az. Solar Energy Advisory Council for further information regarding Arizona energy issues.