There are three sources of funding for the U.S. Department of Energy's (DOE) State Energy Program (SEP): DOE grants, SEP Special Projects, and Petroleum Violation Escrow (PVE) Funds.
State energy offices can use PVE funds for SEP projects if they appear in the SEP plan that the states file yearly with DOE. These funds proceed from court settlements for overcharges by oil companies in the 1970s and 1980s. The last distribution of PVE funds was in the late 1980s, and a final distribution of funding from these escrow accounts is scheduled for 2005.
Formula Grants
States receive yearly grants from DOE based on annual appropriations from Congress. DOE distributes the grants to state energy offices based on this formula, over the $25.5 million according to a formula set by Congress in 1996 when it established the State Energy Program. See CFR420.11 in Appendix B of the SEP Operations Manual (PDF 305 KB). Download Adobe Reader.
One-third equally among all the states and territories
One-third according to population
One-third according to energy consumption.
In addition, states are required to contribute their own funds worth 20% of the DOE grant toward energy projects supported by the grant.
State Energy Program Grants to All States and U.S. Territories
Grant Funding to All States from SEP Predecessor Programs, 1976-1995
SEP Special Projects
The second source of funding is from technology programs in DOE's Office of Energy Efficiency and Renewable Energy (EERE) for deployment projects in the states. EERE awards this funding annually to state energy offices through a competitive solicitation for SEP Special Projects. Since the competition for these funds is keen, many states join forces with private sector partners and contribute their own funds toward these projects. You can find descriptions of these projects and the amount of DOE funding in the SEP Special Projects database.
DOE Funding to All States for SEP Special Projects
