Recovery Act Reports

The following is a list of the oversight results by the Office of Inspector General regarding The Department's programs, grants, and projects funded under the Recovery Act.

Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Department of
Energy's (Department) Office of Energy Efficiency and Renewable Energy (EERE) received
$3.1 billion to be distributed through the State Energy Program (SEP) to stimulate the economy
by creating and preserving jobs while increasing energy efficiency and the use of renewable
energy. Under the authorizing legislation for the SEP, the 50 states, 5 territories, and the District
of Columbia (states) had a degree of flexibility to design and implement programs that met their
specific energy needs and goals. In response to a Department solicitation, the states prepared
plans summarizing energy related programs and projects planned for the SEP Recovery Act
funds. After reviewing those plans, EERE awarded Recovery Act funding to the states for
approved projects consistent with the goals of the program. The $3.1 billion awarded through the
Recovery Act was a dramatic increase over the $25 million appropriated for this Program in
Fiscal Year 2009.
Status Report: The Department of Energy's State Energy Program Formula Grants Awarded under the American Recovery and Reinvestment Act
The Department of Energy's (Department) Office of Energy Efficiency and Renewable Energy (EERE) provides grants to states, territories and the District of Columbia (states) to support their energy priorities through the State Energy Program (SEP). Federal funding is based on a grant formula that considers the population and energy consumption in each state, and amounted to $25 million for Fiscal Year (FY) 2009. The American Recovery and Reinvestment Act of 2009 (Recovery Act) expanded the SEP by authorizing an additional $3.1 billion to states using the existing grant formula. EERE made grant awards to states after reviewing plans that summarize the activities each state will undertake to achieve SEP Recovery Act objectives, including preserving and creating jobs; saving energy; increasing renewable energy sources; and, reducing greenhouse gas emissions. EERE program guidance emphasizes that states are responsible for administering the SEP within each state, and requires each state to implement internal controls over the use of Recovery Act funds.
The purpose of the American Recovery and Reinvestment Act of 2009 (Recovery Act) was to
stimulate the U.S. economy, create or save jobs and invest in the Nation's energy future. The
Recovery Act provided $3.2 billion for the Energy Efficiency and Conservation Block Grant
Program (Program). Administered by the Department of Energy, the Program provides funding
for projects that improve energy efficiency and reduce energy use and fossil fuel emissions.
Activities eligible for funding include, for example, energy efficiency building retrofits and
large-scale heating and cooling systems.
The Department of Energy's Implementation of the Energy Efficiency and Conservation Block Grant Program under the Recovery and Reinvestment Act: A Status Report
Report OAS-RA-10-15, Review of the Department of Energy's Plan for Obligating
Remaining Recovery Act Contract and Grant Funding, was issued to the Secretary and the
Department's management on August 4, 2010.
On August 5, 2010, the Department announced the award of the so-called "FutureGen 2.0"
contract, using $1 billion of American Recovery and Reinvestment Act funding. Despite
our request, specific information pertinent to this action was not provided to the Office of
Inspector General prior to release of the audit report. These circumstances are described on
page 4 of the report in the paragraph referring to the Fossil Energy Program. The data is
highly relevant to the subject of Report OAS-RA-10-15.