Almost $21 Million in Federal Stimulus Dollars Sought for Energy-Related Projects

Governor John P. de Jongh, Jr. said Wednesday that the Virgin Islands government through the V.I. Energy Office has submitted a grant application for the expenditure of $20.6 million under the State Energy Program (SEP) component of the American Recovery and Reinvestment Act. 

“In applying for this stimulus money, my administration seeks to enhance an existing energy program that is in need of federal support. The majority of this funding, if approved, will support a new Energy Office initiative referred to as the Virgin Islands Energy Alliance,” de Jongh said. “This initiative will allow the government to engage energy service companies that will provide financing for an energy efficient retrofit of government facilities and will allow those dollars to be put to immediate work in the local economy. The energy service companies will be repaid by the government pledging a portion of the energy savings realized through a performance contract.” 

“In addition, the State Energy Program funds will be utilized to buy down the payback period of the performance contracts so that the full benefit of the improvements may be realized sooner,” said de Jongh. “This program will significantly reduce the energy consumption of most government facilities with a particular focus on our hospitals, schools and other large energy consumers. The Energy Alliance will also extend the opportunity to increase energy efficiency to the commercial and small industrial operations. The SEP funds will be utilized to offer incentives for those businesses that engage energy service companies in performance contracts,” the Governor added. 

The State Energy Program grant application contains funding to develop a no-money down, no-interest loan program for solar water heater systems offered through the V.I. Water and Power Authority. “When coupled with the rebates offered by the Energy Office and with federal tax credits, this program will provide a never before seen level of affordability for solar water heating installations in the Virgin Islands,” de Jongh said. According to V.I. Energy Office Director Bevan Smith, several other state energy programs in the grant include expansion of the Energy Star rebate program to cover all product categories, training installers of solar water heater systems, replacement of existing traffic signals with LED traffic lights, installation of solar water heaters in the new V.I. Housing Finance Authority affordable housing units, and development of detailed wind resource maps to promote the use of wind energy. 

Smith also said that the V.I. Energy Office has submitted a grant application for the expenditure of more than $1.4 million under the Weatherization Assistance Program, also a component of the federal stimulus legislation. “This is the first time that the Virgin Islands will be participating in this program which is aimed at weatherizing the homes of low-income families earning less than 200% of the federal poverty level.” Smith explained that weatherization can include anything from the installation of water heater timers, up to the replacement of inefficient refrigerators and stoves and the installation of solar water heaters. 

Governor de Jongh said that the application was formally filed on May 5 and receipt of funding is expected within sixty days. The V.I. Energy Office will continue to promote the individual programs and projects that can be funded through these two federal grants. 

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