Though they didn't ask for it and weren't expecting it, Rapid City officials aren't about to turn down $650,000 in one-time federal stimulus money earmarked for projects that improve energy efficiency and reduce total energy use and fossil fuel emissions.

The U.S. Department of Energy announced Thursday that $3.2 billion in federal stimulus funds are being made available to states, counties, cities and tribal governments. South Dakota's share adds up to about $13.1 million, divided among cities, counties and tribes.

Mayor Alan Hanks said the city isn't sure yet what it can use the $649,900 windfall for, but city officials think the best use would be to renovate the 32-year-old energy plant located in the west parking lot of the Rushmore Plaza Civic Center.

The plant provides heating and cooling for the civic center and Central High School and monitors and controls those functions in many school and city buildings. The facility, managed jointly by Rapid City and the school district, needs a major overhaul or replacement.

Although Hanks has concerns about the long-term effect of deficit spending as Congress continues its economic recovery efforts, he is less worried about the local effect of a one-time shot of money that goes toward infrastructure.

"One-time money for infrastructure is pretty straightforward, because it doesn't require the city to commit to an ongoing obligation," the mayor said. "We appreciate any help we can get as long as there are no strings attached, and it doesn't put additional obligations on the taxpayers and ratepayers of Rapid City."

Robert Ellis, public works director, said the state energy management office in Pierre hasn't determined the guidelines for distributing the funds yet. He was told Friday it may be a couple of weeks before that happens, but his understanding is the city will be eligible for at least $649,900.

An energy plant rehabilitation is estimated to cost $5.7 million and would be shared equally by the city and school district. Ellis said the plant has been in use for about 32 years, so it is beyond the typical 25-year lifespan of most mechanical systems.

"It's nothing critically urgent that we have to fix today, but we know in the next few years, we'll have to secure some funding to make those improvements," Ellis said.

Thune questions spending

Sen. John Thune, who voted against the stimulus bill, said it includes some good programs that will benefit South Dakota but that the stimulus spent too much, to do too little, to stimulate the economy. Thune said he has long advocated for energy efficiency and energy development, and that focus hasn't changed.

"I look forward to continuing to work with my colleagues in Congress, as well as South Dakota communities, to further develop our energy resources and make South Dakota a leader in renewable energy production," Thune said.

Hanks shares some of Thune's concerns. He said the city would have to take a hard look at whether to accept stimulus funds if the money required a city match or ongoing payroll and operation and maintenance expenses.

"We appreciate the help we can get," he said, "but everybody seems to be talking about infrastructure, and very little of the money makes it to the local entity."

He said that the state is scheduled to receive about $9.5 million of the $13.1 million.

Julianne Fisher, communications director for Sen. Tim Johnson, said the energy efficiency block grant program was authorized in the 2007 energy bill and funded for the first time in the economic recovery act. She said it's not unusual for communities to have implementation questions in the first year, but Sen. Johnson believes the funding invests in communities and will create jobs.

Russ Levsen, spokesman for Rep. Stephanie Herseth Sandlin, said the Congresswoman supported the stimulus because she believed a strong and swift response was needed to address the country's economic crisis.

Levsen said the program will help create jobs in the short term and save money for municipalities, businesses and families in the long term.

"Clearly, communities have many needs, but it is hard to argue against the merits of this program's goals and the benefit it can bring to Rapid City," Levsen said. "It's also worth noting that in the mid- and long-term, energy efficiency savings could be redirected toward other worthy projects in Rapid City."

According to a news release, the Department of Energy will require grant recipients to report on the number of jobs created or retained, energy saved, renewable energy capacity installed, greenhouse gas emissions reduced, and funds leveraged.

Contact Scott Aust at 394-8415, or scott.aust@rapidcityjournal.com

BREAKOUT

What's it for?

The Energy Efficiency and Conservation block grant program can be used on projects that improve efficiency or save energy, including retrofits in residential and commercial buildings; the development and implementation of advanced building codes and inspections, and the creation of financial incentive programs for energy efficiency improvements.

Other activities eligible for grant funds include transportation programs that conserve energy, projects to reduce and capture methane and other greenhouse gas emissions from landfills, renewable energy installations on government buildings, energy efficient traffic signals and street lights, deployment of heating and cooling systems, and others.

Funding is based on a formula that accounts for population and energy use.

Funding includes:

South Dakota energy office, $9,593,500

Aberdeen, $107,900

Brookings, $87,600

Huron, $50,000

Mitchell, $65,200

Pierre, $61,700

Rapid City, $649,900

Sioux Falls, $1,513,600

Vermillion, $50,000

Watertown, $90,800

Yankton, $61,600

Brown County, $50,000

Lake County, $50,000

Lawrence County, $99,200

Lincoln County, $110,700

Meade County, $97,200

Minnehaha County, $129,300

Pennington County, $125,800

Shannon County, $58,700

Todd County, $50,000

Union County, $64,800

Cheyenne River Sioux Tribe, Cheyenne River Reservation, $254,900

Crow Creek Sioux Tribe, Crow Creek Reservation, $94,600

Flandreau Santee Sioux Tribe, $72,200

Lower Brule Sioux Tribe, Lower Brule Reservation, $71,400

Ogalala Sioux Tribe, Pine Ridge Reservation, $827,100

Rosebud Sioux Tribe, Rosebud Indian Reservation, $353,500

Sisseton-Wahpeton Oyate, Lake Traverse Reservation, $134,000

Yankton Sioux Tribe, $124,100

Standing Rock Sioux Tribe of North & South Dakota, $238,900