WASHINGTON, DC – U.S. Department of Energy Secretary Steven Chu today announced more than $22.2 million in funding from the American Recovery and Reinvestment Act to support energy efficiency and renewable energy projects in Alabama. Under DOE’s State Energy Program, Alabama proposed a statewide plan that prioritizes energy savings, creates or retains jobs, increases the use of renewable energy, and reduces carbon pollution.

Secretary Chu today announced a total of more than $119 million for State Energy Programs in the following seven states and territories: Alabama, American Samoa, the District of Columbia, Illinois, Maryland, North Dakota and Wyoming. These states are receiving 40 percent of their total State Energy Program (SEP) funding authorized under the Recovery Act.

With today's announcement, Alabama will now have received 50 percent of its total Recovery Act SEP funding. The initial 10 percent of total funding was previously available to support planning activities; the remaining 50 percent of funds will be released once the state meets reporting, oversight, and accountability milestones required by the Recovery Act. After demonstrating successful implementation of its plan, Alabama will receive over $28 million in additional funding, for a total of more than $55 million.

The state of Alabama will use its Recovery Act SEP funding to promote energy efficiency of businesses, schools, and correctional facilities and develop renewable energy resources in the state. Alabama will work closely with the automotive supplier industry to improve the energy efficiency of their processes, which will help companies reduce their costs and energy consumption and stabilize employment.

The state will also use funds to create a new energy revolving loan fund to stimulate the creation and retention of jobs and increase the generation of renewable energy by providing low-interest loans for new and existing industries in the state. These loans will be used for the installation of renewable energy systems and the implementation of energy efficiency measures.

Alabama will also direct SEP funds toward energy efficiency retrofits in correctional facilities and K-12 schools to reduce energy consumption, save money, and create jobs.