Iowa to see $170 million in federal dollars for clean energy, energy efficiency measures

DES MOINES - Iowa will see an infusion more than $170 million in federal stimulus dollars to fund the production of clean energy and energy efficiency measures, according to the Iowa Policy Project, an Iowa City-based think tank.

Beth Pearson, one of the authors of the group's report, said the federal dollars give Iowa an opportunity to boost ongoing state efforts.

"I do think Iowa is really poised to lead the way with this energy funding," Pearson said. "We've been a leader in the past when it comes to really implementing good energy efficiency and clean energy programs."

A large share of the federal dollars, about $80 million, will go to weatherization efforts over the next three years. Low-income Iowans will see help obtaining energy-efficient appliances and retrofitting their homes to make them more energy efficient.

The challenge will be getting energy auditors and contractors trained so that the money can be spent within the three years it is available, Pearson said.

Eligibility for the program also will be expanded, so that people earning up to 200 percent of the federal poverty level qualify, rather than the current threshold of 150 percent. The maximum amount spent per household also goes up.

Weatherization efforts have typically amounted to far less in Iowa, with roughly $15 million spent each year.

The federal dollars will pay for a "huge expansion" of the program, Pearson said.

Another $60 million will go to a state energy program that helps increase access to renewable energy and energy efficiencies.

These types of federal investments have historically produced big returns in energy savings, Pearson said.

But to take advantage of the federal help, Iowa will have update its building codes and help utilities offer energy efficiency savings to consumers, Pearson said.

Local governments stand to benefit from the federal funding as well, and will see more than $20 million for energy efficiency and renewable energy projects.

"Many of these cities and counties haven't had programs in the past that have focused on energy efficiency so these are tremendous opportunities," Pearson said.

Teresa Galluzzo, another author of the study, said to seize the opportunity, it is critical that the money is spent on projects that yield big energy savings.

"In the near term, how well we spend these dollars will determine how much we're able to reduce our energy use and save consumers money," Galluzzo said.

Sean Bagniewski, who is overseeing the spending of federal dollars for the Iowa Office of Energy Independence, said they are still waiting in come cases for guidelines from the federal government to determine how the money can be spent.

But he expects the money will have a long-term impact in Iowa.

"In some instances, it will be a difference that lasts for decades," Bagniewski said.