DOE to Award $3.2 Billion in Energy Efficiency Block Grants
April 2nd, 2009
On March 26, 2009 the DOE announced plans to invest $3.2 billion in energy efficiency and conservation projects in U.S. cities, counties, states, territories, and tribal lands. Funded by the American Recovery and Reinvestment Act (ARRA), the Energy Efficiency and Conservation Block Grant program will provide formula grants for projects that reduce fossil fuel emissions and improve energy efficiency nationwide.
The funding will be used to support energy audits and energy efficiency 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. Grant funding may be used for transportation programs that conserve energy, projects to reduce and capture methane emissions from landfills, renewable energy installations on government buildings, energy-efficient traffic signals and street lights, combined heat and power systems, district heating and cooling systems, and other projects.
Approximately $1.9 billion in funding will go to cities and counties under the block grant program, while states and territories will receive nearly $770 million, and more than $54 million will flow directly to tribal governments. Administration and oversight of funding will be granted to the states for those counties and cities that are not large enough to qualify for direct DOE funding. An upwards of $456 million will be made available for local energy efficiency projects under a separate competitive solicitation to be released at a later date.
Funding will be allocated based on a formula that accounts for population and energy use. DOE will provide guidance to grant recipients and require them to report on the number of jobs created or retained, energy saved, renewable energy capacity installed, greenhouse gas emissions reduced, and funds leveraged. See the DOE press release and the Web site for the Energy Efficiency and Conservation Block Grant Program.
Helios Strategies will continue to monitor funding coming out of the American Recovery and Reinvestment Act for future opportunities.