Efficiency First

On September 13, the Kansas Commerce Department returned $1.5 million of an original $22 million in American Recovery and Reinvestmant ACT (AARA) funds taken from Efficiency Kansas in July. The $1.5 million is expected to cover the costs of all pending loan applications in Kansas for home performance improvements to houses and small businesses. While pending applications will be processed on a first-come first-serve basis, others interested in participating in the loan program will have to wait for further funding to be secured.

As of July, a total of $22 million remained in AARA funds  allocated to Efficiency Kansas through the Department of Energy (DOE). Despite significant progress from Efficiency Kansas since its inception in June, Governor Brownback’s administration decided in July that the Chapter would not be able to spend the full amount of the stimulus money by the DOE’s April 1, 2012 deadline. As a result, the governor reallocated all $22 million in Recovery Act funds to various projects aimed at bolstering the alternative fuel industry in Kansas. The $1.5 million recently returned to Efficiency Kansas is the result of the chapter pressuring the governor’s administration to return enough funds to process all pending applications for home performance retrofits in the state.

While it is disappointing that the original funding of $22 million was pulled from Efficiency Kansas, the $1.5 million that was recently given back to the program represents a small victory. No further AARA money will be available to fund the program, but the Chapter is in talks with local utilities and private financial institutions to provide low-interest loans to property owners interested in home performance upgrades. The Kansas Corporation Commission (KCC) has recently sent out a “request for proposals” seeking additional funds to accelerate and expand private sector involvement in the program.

As a result of taking their case for increased ARRA funding to the governor’s office, Efficiency First Kansas City has increased public awareness of the home performance industry, and also started to develop some valuable partnerships with utilities and local government — the kinds of efforts that can expand and accelerate public and private investments in the industry.

Visit www.efficiencyfirst.org/chapters/kansascity to learn more.