ACTION:
____________________________
Clerk/Secretary
Department: City Manager’s Office Item No: C9
Prepared by: Angela Baggett, Management Analyst Meeting Date: April 25, 2023 Approved by: John Conley, City Manager Agenda Location: Consent Calendar SUBJECT: ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) AWARD
PROGRAM FOR LOCAL GOVERNMENTS
RECOMMENDATION: Adopt City Council Resolution No. 2023- , authorizing application for Energy Efficiency and Conservation Block Grant (EECBG) award, receipt of the award, and utilizing funds for solar at Fire Station 3.
CORRELATION TO CITY COUNCIL GOALS: 1) Fiscal Responsibility; and 2) Climate and Environmental Responsibility
PRIOR ACTION: None
STATEMENT ON THE SUBJECT: The Energy Efficiency and Conservation Block Grant (EECBG) Program, which is administered by the Department of Energy, is designed to assist states, local governments, and Tribes in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency. The Department of Energy (DOE) used the U.S. Census Bureau’s 2020 Decennial Census Redistricting Data to determine the population of local governments. The information was used to for formula grants to allocate funding based on population. The City of Vista is eligible to receive $148,840.
A pre-award application is required to be submitted by April 28, 2023. After review and discussion of the “INFRASTRUCTURE INVESTMENT AND JOBS ACT OF 2021 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM FORMULA GRANT APPLICATION INSTRUCTIONS”, staff recommends applying to the voucher program for reimbursement and using the funding for solar at Vista Fire Station 3, which is currently in the process of being updated and is part of our Capital Improvement Program (CIP 8331). The solar project is consistent with Vista’s Climate Action Plan (CAP) (CAP: Strategy 4: Increase Building Energy Efficiency, Measure E-1: Implement Energy Efficient Projects in Municipal Facilities). Funding from the CAP budget will cover any overage to complete the project and aligns with City Council’s Climate and Environmental Responsibility goal.
Additionally, this project meets the EECBG Program’s eligible projects listed as high-impact projects and programs based on proven practices.
FISCAL IMPACT: The amount of allocated funds available is $148,840. The City will receive funds on a reimbursement basis as the project is completed. The General Operating Budget will be amended to reflect this and will be included in the Fiscal Year 2022/23 Third Quarter (Q3) report.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
04/25/2023 C9 Page 1 of 43
Approved above recommendation, adopted City Council Resolution No. 2023-62.
Vote: 4-0 (O'Donnell absent)
MEETING DATE: April 25, 2023 PAGE 2
SUBJECT: ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) AWARD
PROGRAM FOR LOCAL GOVERNMENTS
EXHIBITS:
1. City Council Resolution No. 2023- , authorizing application for Energy Efficiency and Conservation Bock Grant (EECGB) award, receipt of the award, and utilizing funds towards solar at Fire Station 3.
2. Energy Efficiency and Conservation Block Grant Formula Grant Application instructions.
04/25/2023 C9 Page 2 of 43
00029213 6
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, AUTHORIZING APPLICATION FOR ENERGY
EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) AWARD,
RECEIPT OF AWARD, AND UTILIZING FUNDS FOR SOLAR AT FIRE STATION 3
The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. The Energy Efficiency and Conservation Block Grant (EECBG) Program, which is administered by the Department of Energy, is designed to assist states, local governments, and Tribes in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency.
B. The City of Vista is eligible to receive $148,840.
C. The City will receive funds on a reimbursement basis to purchase and install solar on Fire Station 3.
2. Action.
A.The City Council approves the filing of project grant agreement for the above specified grant project and
B.The City Council certifies that the City has or will have available, prior to commencement of project work utilizing specified grant funds, sufficient funds, including those provided by this grant, to complete the project; and
C.The City Council certifies that the City has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Procedural Guide; and D.The City Manager, or his/her designee is authorized to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the project scope(s); and
E.The City Council agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.
04/25/2023 C9 Page 3 of 43EXHIBIT 1
RESOLUTION NO. 2023-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2
00029213 6EXH1 2023- Resolution for EECGB formula grant award.docx
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on April 25, 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20230413141926
JOHN FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
04/25/2023 C9 Page 4 of 43
1 EECBG Program Notice 22-01
Effective Date: January 18, 2023
SUBJECT: INFRASTRUCTURE INVESTMENT AND JOBS ACT OF 2021 ENERGY
EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM FORMULA GRANT
APPLICATION INSTRUCTIONS
TABLE OF CONTENTS
1.0 PURPOSE .............................................................................................................................................. 3
2.0 SCOPE ................................................................................................................................................... 3
2.1 ELIGIBLE APPLICANTS ......................................................................................................... 3
2.2 ALLOWABLE ACTIVITIES .................................................................................................... 6
2.3 EECBG PROGRAM FORMULA AWARDS: GRANTS AND VOUCHERS .......................... 8
2.4 TEAMING AND PARTNERSHIPS ........................................................................................ 10
3.0 LEGAL AUTHORITY ....................................................................................................................... 11
4.0 PROGRAM OVERVIEW & GOALS ............................................................................................... 11
4.1 DIVERSITY, EQUITY, INCLUSION, AND ACCESSIBILITY ............................................ 12
4.2 JUSTICE40 INITIATIVE ........................................................................................................ 13
4.3 JOB GROWTH AND QUALITY ............................................................................................ 16
4.4 TECHNICAL ASSISTANCE .................................................................................................. 16
4.5 BLUEPRINTS .......................................................................................................................... 17
5.0 FUNDING ............................................................................................................................................ 18
5.1 IIJA FORMULA ALLOCATIONS .......................................................................................... 18
5.2 COST MATCH ........................................................................................................................ 18
5.3 PROGRAM INCOME ............................................................................................................. 19
6.0 APPLICATION INSTRUCTIONS FOR IIJA EECBG PROGRAM FORMULA GRANTS ...... 19
6.1 OVERVIEW ............................................................................................................................ 19
6.2 APPLICATION REVIEW PROCESS ..................................................................................... 20
6.3 EECBG PROGRAM GRANT AWARD APPLICATION ....................................................... 20
6.3. A. STANDARD FORM 424 (APPLICATION) ...................................................................... 21
6.3. B. STANDARD FORM 424A (BUDGET) ............................................................................. 21
6.3. C. ENERGY EFFICIENCY AND CONSERVATION STRATEGY ..................................... 23
6.3. D. EECBG PROGRAM ACTIVITIES FILE .......................................................................... 24
6.3. E. LIMITATIONS ................................................................................................................... 24
6.3. F. OTHER FORMS ................................................................................................................. 25
6.3. G. NATIONAL ENVIRONMENTAL POLICY ACT INFORMATION ............................... 26 04/25/2023 C9 Page 5 of 43EXHIBIT 2
2 7.0 APPLICATION FORMAT AND CHANGES (FORMULA GRANTS) ........................................ 31
7.1. A. CONTENT AND FORM OF APPLICATION ................................................................... 31
7.1. B. OTHER SUBMISSION AND REGISTRATION REQUIREMENTS ............................... 31
7.1. C. QUESTIONS/AGENCY CONTACTS............................................................................... 31
8.0 REPORTING REQUIREMENTS ..................................................................................................... 31
9.0 VOUCHERS ........................................................................................................................................ 32
9.1 PURPOSE ................................................................................................................................ 32
9.2 A. TECHNICAL ASSISTANCE VOUCHERS ....................................................................... 32
9.2 B. VOUCHERS FOR EQUIPMENT REBATES..................................................................... 32
9.3 VOUCHER APPLICATION PROCESS ................................................................................ 33
10.0 CONCLUSION .................................................................................................................................. 33 APPENDIX 1: APPLICATION MATERIALS CHECKLIST .............................................................. 36 APPENDIX 2: BLUEPRINTS – TOPICS AND KEY ACTIVITIES WITH STREAMLINED REVIEWS .................................................................................................................................................. 37 04/25/2023 C9 Page 6 of 43
3 1.0 PURPOSE
The Department of Energy (DOE) is establishing Formula Grant Application Instructions and management information for the Infrastructure Investment and Jobs Act (IIJA) Energy Efficiency and Conservation Block Grant (EECBG) Program, including (1) Administrative and Legal Requirements Document (ALRD), (2) IIJA Formula Allocations to States, Local Governments and Indian tribes, (3) IIJA Application Checklist, (4) IIJA EECBG Program Pre-Award Information Sheet, and (5), IIJA Energy Efficiency and Conservation Strategy Templates.
The EECBG Program assists eligible states, units of local government, and Indian tribes, as described below (herein called “entities” or “eligible entities”) in implementing strategies to:
• Reduce fossil fuel emissions in a manner that is environmentally sustainable and, to the maximum extent practicable, maximizes benefits for local and regional communities; • Reduce the total energy use of the eligible entities; and • Improve energy efficiency in the transportation sector, the building sector, and other appropriate sectors.1
• Build a clean and equitable energy economy that prioritizes disadvantaged communities and promotes equity and inclusion in workforce opportunities and deployment activities, consistent with the Justice40 Initiative.
These stated purposes describe the overall intent of the EECBG Program. Entities may develop various initiatives and projects that address one or more of the purposes and each activity an entity undertakes is not required to meet all of the stated purposes. Entities may choose from a range of eligible activities, as defined in Section 544 of the Energy Independence and Security Act of 20072(EISA) as amended by Section 40552(a) of the IIJA (Public Law 117-58).
Each entity receiving EECBG Program funds (including State sub-recipients) is required to use the funds in a cost-effective manner that is of maximum benefit to the population of that entity and in a manner that will yield sustained long-term impacts in terms of energy, emission reductions, and equitable workforce and community investment opportunities. To these ends, DOE encourages entities to develop new and innovative approaches within the framework of the legislation and Program Guidance.
2.0 SCOPE
The provisions of this Program Notice apply to eligible entities applying for formula grant financial assistance under DOE’s EECBG Program with appropriations provided by the IIJA under Section 40552(b). The information in this Program Notice incorporates relevant provisions from the Code of Federal Regulations (CFR) applicable to financial assistance awards under the EECBG Program, including 2 CFR Part 200 as amended by 2 CFR Part 910 (the DOE Financial Assistance Rules) and the EECBG Statute, located at 42 U.S.C. Chapter 152, Subchapter IV, Part C.
These regulations are the official sources for program requirements.
2.1 ELIGIBLE APPLICANTS
In accordance with Section 543 of EISA, eligible entities for EECBG Program formula allocations include States, local governments, and Indian tribes.3 Eligibility is restricted to eligible state, local, and Tribal governments applying for funding under the EECBG Program. The list of eligible entities and
1 42 U.S.C. 17152(b).
2 42 U.S.C. 17154.
3 42 U.S.C. 17153(a).
04/25/2023 C9 Page 7 of 43
4 funding allocations are attached to the ALRD and available on the EECBG Program website at:
https://www.energy.gov/clean-energy-infrastructure/energy-efficiency-and-conservation-block-grant- program.
State Government Eligibility
For the purposes of the EECBG Program, there are 56 entities eligible for state formula grants. These are the 50 states, the District of Columbia, and the following five U.S. Territories: the Commonwealth of Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.
Local Government Eligibility
Section 541(2) of EISA divides eligible units of local government into two categories, defined as “eligible unit of local government-alternative 1” (“local government-alternative 1”) and “eligible unit of local government-alternative 2” (“local government-alternative 2”).4 DOE determined that 1,878 local governments are eligible for EECBG Program formula grants.
Local Government-Alternative 1
There are 1,878 local governments eligible under the definition of Local Government-Alternative 1 and meet the following criteria outlined in section 541(3)(A) of EISA:
• cities that are one of the top 10 most populous cities within their state or that have a population of at least 35,000; and
• counties that are one of the 10 most populous counties within their state or that have a population of more than 200,000.5
Local Government-Alternative 2
There are 1,032 local governments eligible under the definition of the Local Government-Alternative 2 and meet the following criteria outlined in section 541(3)(B) of EISA:
• cities with populations of at least 50,000; or
• counties with populations of at least 200,000.6
Local governments eligible for Local Government-Alternative 2 funding are also eligible for Local Government-Alternative 1 funding.
DOE used the U.S. Census Bureau’s 2020 Decennial Census Redistricting Data to determine the population of local governments. City and county governments that do not meet the eligibility requirements for direct formula grants from DOE are eligible for EECBG Program funds through the state in which they are located and can also apply for EECBG Program competitive grants from DOE. While EISA directs DOE to provide grants to cities and counties that qualify as eligible units of local government, EISA does not define “city” or “county.” DOE established the definitions of “city” and “county” in alignment with the eligibility criteria DOE used for the EECBG Program under the American Recovery and Reinvestment Act (ARRA), to the extent practicable.7
4 42 U.S.C. 17151(2).
5 42 U.S.C. 17151(3)(A).
6 42 U.S.C. 17151(3)(B).
7 71 FR 17461, 17462 (Apr. 15, 2009).
04/25/2023 C9 Page 8 of 43
5 Definition of “City”
For the purposes of the EECBG Program, DOE is defining “city” to include certain city-equivalent units of local government. Specifically, a city-equivalent unit of local government such as a town, village, or other municipality will be considered eligible if it is listed in the 2021 Census of Governments Survey as a currently incorporated entity, has a governance structure consisting of an elected official and governing body, is capable of carrying out the activities outlined in EISA, and meets the required population thresholds outlined in EISA. DOE used the 2022 Boundary and Annexation Survey Code Lists to identify eligible local governments within the Commonwealth of Puerto Rico. Additionally, a consolidated or unified city-county government in which a city and a county overlap geographically and govern as one consolidated government is considered a city by DOE.
DOE includes the following clarifications to the records used to calculate the universe of cities that are eligible for the EECBG Program:
• In the Commonwealth of Puerto Rico, Municipios are treated as cities. Though designated as counties by the 2020 Census: Redistricting File (Public Law 94-171) Dataset, governments of Municipios have the functionality of city governments.
• Towns, townships, and boroughs that are incorporated places are treated as cities. The governments of these places have the functionality of city governments. • In the states of Connecticut, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Wisconsin, minor civil divisions are treated as cities.8
• There are no eligible entities in the District of Columbia, U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.
Definition of “County”
For the purposes of the EECBG Program, a county will be considered eligible for direct formula grants if it is listed in the 2021 Census of Governments Survey as a currently incorporated county, has a governance structure with an elected official and governing body, is capable of carrying out the activities outlined in EISA, and meets the required population thresholds outlined in EISA.
For counties, all population figures are adjusted to reflect only the balance of their population, excluding the populations of any eligible cities therein. This population is referred to as the “county balance population.” In determining county balance populations, DOE identified a number of cities with geographic boundaries that cross the borders of multiple counties. In calculating county balance populations for those counties that contain only a part of an eligible city, DOE subtracted the portion of the eligible city’s population living within that county.
DOE includes the following clarifications to the records used to calculate the universe of counties that are eligible for the EECBG Program:
• Counties that are not a part of the 2021 Census of Governments Survey and are without governmental authority are not a part of the database and are thus not eligible for direct EECBG Program formula grants. This pertains to some counties in Alaska and Massachusetts, as well as all counties in Connecticut and Rhode Island.
8 United States Census Bureau Terms and Definitions – Minor Civil Divisions. 04/25/2023 C9 Page 9 of 43
6 • If one or more of the 10 most populated counties is ineligible or considered a city (i.e., a city- county consolidated government), the next largest county by population will be moved into the list of the 10 most populated counties for that state.
• Census areas in Alaska were not considered eligible counties because they have limited government functions.9
• There are no counties in the District of Columbia.
Indian Tribe Eligibility
As defined by section 541(4) of EISA, the term “‘Indian tribe’ has the meaning given the term” in section 4 of the Indian Self-Determination and Education Assistance Act.’”10 The Indian Self-Determination and Education Assistance Act states that the term “Indian tribe” means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (ANSCA),11 which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
There are 774 Indian tribes eligible for a formula grant through the EECBG Program including: 574 federally recognized Indian tribes listed by the Bureau of Indian Affairs (BIA) in the 2022 Federal Register Notice;12 six additional Indian tribes because eight bands of Indian tribes comprise two of the federally recognized Indian tribes, 12 Alaska Native Regional Corporations established under the ANSCA;13 and 182 currently active Alaska Native Village Corporations, group corporations, and urban corporations. ANCSA defines “group corporation” and “urban corporation,” which are similar to village corporations except that they apply to established Native groups and urban communities of Alaska Native people. As such, “group corporations” and “urban corporations” are included in the definition of Indian tribes defined by DOE for the EECBG Program.
DOE includes the following clarifications to the records used to identify the Indian tribes that are eligible for the EECBG Program, in line with the BIA’s 2022 Federal Register Notice:
• Minnesota Chippewa is comprised of six separate bands of Indian tribes each eligible for a direct formula grant: Boise Forte Band, Fond Du Lac Band, Grand Portage Band, Leech Lake Band, Mille Lacs Band, and White Earth Band.
• Capitan Grande Band of Diegueno Mission Indians of California is comprised of two separate bands of Indian tribes both eligible for a direct formula grant: Barona Group of Capitan Grande Band of Mission Indians of the Barona Reservation and Viejas (Baron Long) Group of Capitan Grande Band of Mission Indians of the Viejas Reservation. • The Passmaquoddy Tribe is made up of Pleasant Point and Indian Township. There will be one formula allocation made to the Passamaquoddy Tribe that will be split proportionally between the two parts upon the grant being awarded.
2.2 ALLOWABLE ACTIVITIES
Under the EECBG Program, entities will develop various initiatives and projects that address one or more of the program purposes. Entities are encouraged to use their EECBG Program funds in a manner that is of maximum benefit to their population, in a manner that will leverage other sources of financing or
9 Guide to the State and Local Census Geography – Alaska. 10 42 U.S.C. 17151(4), referencing 25 U.S.C. 5304(e).
11 Public Law 92-203, Dec. 18, 1971, 85 Stat. 688.
12 87 FR 4636 (Jan. 28, 2022).
13 33 U.S.C. 1602 et seq.
04/25/2023 C9 Page 10 of 43
42 U.S.C. 17154. 14
7 funding, and will yield maximum benefits over time in terms of energy and emission reductions. DOE also encourages entities to consider investing the funding in ways that lead to equitable and just outcomes. To these ends, DOE encourages entities to develop new and innovative approaches within the framework of the legislation and the guidance. Eligible activities are listed below, and full details are described in section 544 of the EISA.14
An eligible entity may use its EECBG Program 2022 formula award to carry out activities to achieve the purposes of the program, including—
(1) Development and implementation of an Energy Efficiency and Conservation Strategy; (2) Retaining technical consultant services to assist the eligible entity in the development of such a strategy, including—
(A) formulation of energy efficiency, energy conservation, and energy usage goals; (B) identification of strategies to achieve those goals— (i) through efforts to increase energy efficiency and reduce energy consumption; and (ii) by encouraging behavioral changes among the population served by the eligible entity;
(C) development of methods to measure progress in achieving the goals; (D) development and publication of annual reports to the population served by the eligible entity describing—
(i) the strategies and goals; and
(ii) the progress made in achieving the strategies and goals during the preceding calendar year; and
(E) other services to assist in the implementation of the energy efficiency and conservation strategy;
(3) Conducting residential and commercial building energy audits; (4) Establishment of financial incentive programs for energy efficiency improvements; (5) The provision of grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits;
(6) Development and implementation of energy efficiency and conservation programs for buildings and facilities within the jurisdiction of the eligible entity, including— (A) design and operation of the programs;
(B) identifying the most effective methods for achieving maximum participation and efficiency rates;
(C) public education;
(D) measurement and verification protocols; and
(E) identification of energy efficient technologies;
(7) Development and implementation of programs to conserve energy used in transportation, including— (A) use of flex time by employers;
(B) satellite work centers;
(C) development and promotion of zoning guidelines or requirements that promote energy efficient development;
(D) development of infrastructure, such as bike lanes and pathways and pedestrian walkways; (E) synchronization of traffic signals; and
04/25/2023 C9 Page 11 of 43
42 U.S.C. 17154. 15
8 (F) other measures that increase energy efficiency and decrease energy consumption; (8) Development and implementation of building codes and inspection services to promote building energy efficiency;
(9) Application and implementation of energy distribution technologies that significantly increase energy efficiency, including—
(A) distributed resources; and
(B) district heating and cooling systems;
(10) Activities to increase participation and efficiency rates for material conservation programs, including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency;
(11) The purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar sources; (12) Replacement of traffic signals and street lighting with energy efficient lighting technologies, including—
(A) light emitting diodes; and
(B) any other technology of equal or greater energy efficiency; (13) Development, implementation, and installation on or in any government building of the eligible entity of onsite renewable energy technology that generates electricity from renewable resources, including—
(A) solar energy;
(B) wind energy;
(C) fuel cells; and
(D) biomass; and
(14) Programs for financing energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure), capital investments, projects, and programs, which may include loan programs and performance contracting programs, for leveraging of additional public and private sector funds, and programs that allow rebates, grants, or other incentives for the purchase and installation of energy efficiency, renewable energy, and zero-emission transportation (and associated infrastructure) measures; and
15) Any other appropriate activity, as determined by the Secretary, in consultation with— (A) the Administrator of the Environmental Protection Agency; (B) the Secretary of Transportation; and
(C) the Secretary of Housing and Urban Development.15
2.3 EECBG PROGRAM FORMULA AWARDS: GRANTS AND VOUCHERS
To streamline the award process, DOE is providing local and Tribal governments applying for an EECBG Formula Program award with the option to select a grant or voucher. In addition, DOE is providing project blueprints, which are designed to help further streamline the award process. Blueprints may be used with either grants or vouchers. Entities selecting a grant should follow the application instructions shown in Section 7.0. Additional guidance will be forthcoming from DOE on the application process for Vouchers. The expected award period for vouchers is up to two years. 04/25/2023 C9 Page 12 of 43
9 IIJA grant awards will consist of a Project and Budget Period up to two years for local governments and Tribes, and up to three years for states, with options for extensions upon approval by the DOE Contracting Officer.
To assist applicants with planning, DOE is providing estimated award processing timeframes for each award type below. Note that these timeframes are estimates and are subject to change based on total volume of applications received, completeness of submitted applications, and award negotiation requirements. Applications may be subject to additional review prior to award or release of funds, including financial, legal, programmatic, or NEPA review.
Type of Award Vouchers Grants following
Blueprints
Grants not following
Blueprints
Typical award
processing
timeframe*
30-60 days Up to 60 days Minimum of 90 days
Additional
application
requirements or
award conditions
Comply with Voucher
Terms and Conditions
May be subject to
additional review
(e.g., indirect cost rates,
sub-grants, accounting
system and financial
controls)
May be subject to
additional review and
award conditions
(e.g., NEPA)**
Application method Submit voucher application
by January 31, 2024***
Submit grant application
in Period 1 or 2 (select
one or more blueprints)
Submit grant
application in Period
3 or 4.
Table notes:
*Award processing times shown are estimates, based on submission of a complete application that is responsive to all required application materials and system registration requirements. Award processing times may vary depending on multiple factors, including the number of applications submitted, complexity of award applications, and additional review required to process applications (such as NEPA review and approval of proposed projects).
The above timeframes do not include the time required for applicants to prepare and submit an application to DOE. **Awards requiring NEPA review will require extended time to review applications, including completion of environmental assessment or an EIS, depending on the scope of the proposed activity. Awards may be partially or fully conditioned (funds restricted from expenditure) until completion of required NEPA reviews. ***Additional information on the Voucher application process will be forthcoming from the EECBG Program.
Local and Tribal entities will have the choice between a grant OR a voucher. The financial value of the voucher is expected to be equivalent to the formula award allocated to the eligible entity.16 Vouchers are subject to the same legislation and guidance that applies to EECBG Program formula grants, including Voucher Terms and Conditions. Vouchers will be available to formula-eligible local governments and Indian tribes for two purposes:
• technical assistance (TA) and
• equipment rebates.
A separate application process will be utilized for entities interested in applying for a voucher in lieu of a grant. The scope of activities eligible for vouchers and application procedures, and comparison of grant
16Administrative costs directly associated with the voucher, including contracting, reporting, site inspections and regulatory compliance are included as part of the total financial amount of the voucher. Recipients will be responsible for ongoing costs of installed equipment, such as operations and maintenance. 04/25/2023 C9 Page 13 of 43
10 and voucher application requirements is provided in Section 9 to assist applicants in selecting whether to choose a grant or voucher for their formula award under the EECBG Program.
2.4 TEAMING AND PARTNERSHIPS
All EECBG Program formula-eligible entities are encouraged to team up with neighboring or peer entities that are also eligible for EECBG Program formula awards, to align EECBG Program 2022 plans and efforts. Pooling funds could allow jurisdictions to share the costs of analyses or programs in an efficient and mutually beneficial way. Opportunities for collaboration are vast, and could foster peer learning, reduced administrative burden, more effective use of limited grant dollars, and more impactful outcomes.
Teams could collaborate on regional activities, create programs to serve multiple jurisdictions regardless of geography, or simply team up to work in parallel on similar proposals.
Below are illustrations of teaming opportunities:
• Create a regional clean energy infrastructure strategy and hire consultants to develop regional economic development analyses
• Stand up an energy efficiency workforce training program17 to serve several neighboring communities, and pool EECBG Program funds to hire a part-time program administrator • Create a low-interest financing program for income-qualified residential energy retrofits and rooftop solar to serve community members across a state • Design and establish a revolving loan fund18 to deploy virtual power plants (e.g., grid-interactive efficient buildings, battery storage systems) and building and transportation electrification projects across a utility territory
• Coordinate with peer municipalities to design and execute innovative programs to lower energy burdens in rural or urban settings
• Pursue energy audits and retrofits of municipal buildings across several communities and hire a shared energy manager to support projects across the state • Develop a regional stretch energy code for new construction and a building performance standard for existing buildings and provide technical support and training for local code adoption and compliance
Each team will opt for either vouchers or grants. Each entity within a team will receive its own EECBG Program grant or voucher, and entities on a team may choose to jointly fund EECBG Program activities.
However, each entity will be ultimately responsible for accounting and tracking the use of their own funds and for reporting outcomes of their own efforts. Teams may consist of any number of eligible entities, with two as the minimum.
Teams pursuing a grant award will submit a single joint application to DOE, with one eligible EECBG Program entity as the Prime Applicant. Team applications will describe the plan for the use of each entity’s EECBG Program funds and list the primary point of contact for the team, as well as points of contact for all entities on the team. Each entity must submit and receive approval of its own EECS, as part of the team application.
Teaming partners should indicate their permission allowing the prime applicant to submit the application on their behalf. Teams may consider developing a separate partnership agreement, such as a
17 For more information on related BIL workforce development funding opportunities, see the Career Skills Training Program and the Energy Auditor Training Grant Program.
18 For more information on related state Revolving Loan Fund formula allocations, see the EE RLF Infrastructure Investment and Jobs Act Administrative and Legal Requirements Document (ALRD). 04/25/2023 C9 Page 14 of 43
11 Memorandum of Understanding, in which all parties agree in writing to how the funds will be spent, roles and responsibilities, and any other terms and conditions to ensure clear expectations and a mutually beneficial approach.
Partnerships
In addition to eligible entities teaming with other eligible entities to co-invest their awards, EECBG Program grantees may partner with other stakeholders that can help drive the progress and success of their programs and projects, including utilities, energy industry and financial companies, community-based organizations, labor unions, and other non-profit organizations.
3.0 LEGAL AUTHORITY
The EECBG Program is authorized under Title V, Subtitle E of the Energy Independence and Security Act of 2007 (EISA), as amended,19 and signed into Public Law (PL 110-140) on December 19, 2007. All awards made under this program shall comply with applicable laws and regulations including, but not limited to, the DOE financial assistance regulations at 2 CFR Part 200 as amended by 2 CFR Part 910 and Section 40552 of the Infrastructure Investment and Jobs Act.
4.0 PROGRAM OVERVIEW & GOALS
Projects awarded under this ALRD will be funded, in whole or in part, with funds appropriated by IIJA,20 also known as the Bipartisan Infrastructure Law (BIL).
The BIL is a once-in-a-generation investment in infrastructure, designed to modernize and upgrade American infrastructure to enhance United States competitiveness, drive the creation of good-paying union jobs, tackle the climate crisis, and ensure stronger access to economic, environmental, and other benefits for disadvantaged communities21. The BIL appropriates more than $62 billion to the Department of Energy (DOE)22 to invest in American manufacturing and workers; expand access to energy efficiency and clean energy; deliver reliable, clean, and affordable power to more Americans; and demonstrate and deploy the technologies of tomorrow through clean energy demonstrations.
As part of and in addition to upgrading and modernizing infrastructure, DOE’s BIL investments will support efforts to build a clean and equitable energy economy that achieves a zero-carbon electricity system by 2035, and to put the United States on a path to achieve net-zero emissions economy-wide by no later than 2050 to benefit all Americans.23
Through this funding action, the BIL will invest appropriations of $550,000,000 for fiscal year 2022, to remain available until expended to 2,708 eligible entities, in accordance with the EECBG Program allocation formulas issued on June 29, 2022. EECBG Program recipients may use funds for a diverse
19 42 U.S.C. 17151 et seq.
20 Infrastructure Investment and Jobs Act, Public Law 117-58 (November 15, 2021). https://www.congress.gov/bill/117th-congress/house-bill/3684 21 Pursuant to Executive Order (EO) 14008, “Tackling the Climate Crisis at Home and Abroad,” January 27, 2021, and the Office of Management and Budget’s Interim Justice40 Implementation Guidance M-21-28, DOE has developed a definition and tools to locate and identify disadvantaged communities. These resources can be located at https://energyjustice.egs.anl.gov/ . DOE will also recognize disadvantaged communities as defined and identified by the White House Council of Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST), which can be located at https://screeningtool.geoplatform.gov/ . 22 U.S. Department of Energy. November 2021. “DOE Fact Sheet: The Bipartisan Infrastructure Deal Will Deliver For American Workers, Families and Usher in the Clean Energy Future.” https://www.energy.gov/articles/doe-fact- sheet-bipartisan-infrastructure-deal-will-deliver-american-workers-families-and-0 23 EO14008.
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12 range of eligible activities that support investments in programs, policies, and projects, including actions that: 1) reduce energy use and carbon emissions; 2) achieve ongoing energy and operational cost-savings for local governments and taxpayers; and 3) increase community investment/workforce development opportunities.
DOE seeks to deliver an efficient and effective EECBG Program designed to achieve sustained impacts that put communities on a pathway to reducing fossil fuel use and total energy use and improving energy efficiency while fulfilling Justice40 Initiative goals (see Section 4.2). As part of the whole-of-government approach to advance equity and encourage worker organizing and collective bargaining,24,25,26 this funding action and any related activities will seek to encourage meaningful engagement and participation of workforce organizations, including labor unions, as well as underserved communities and underrepresented groups, including consultation with Tribal Nations.27,28 Consistent with EO 14008,29 this funding action is designed to help meet the goal that 40% of the overall benefits of certain investments in clean energy and climate solutions flow to disadvantaged communities (underserved, overburdened, and frontline communities) as defined by the Department pursuant to the EO and to drive the creation of good-paying jobs with the free and fair chance for workers to join a union.30
4.1 DIVERSITY, EQUITY, INCLUSION, AND ACCESSIBILITY
It is the policy of the Administration that:
“[T]he Federal Government should pursue a comprehensive approach to advancing equity31 for all, including people of color and others who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality.
Affirmatively advancing equity, civil rights, racial justice, and equal opportunity is the responsibility of the whole of our government. Because advancing equity requires a systematic approach to embedding fairness in decision-making processes, executive departments and agencies must recognize and work to redress inequities in their policies and programs that serve as barriers to equal opportunity.
By advancing equity across the Federal Government, we can create opportunities for the improvement of communities that have been historically underserved, which benefits everyone.”32
24 EO 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” January 20, 2021.
25 EO 14025, “Worker Organizing and Empowerment,” April 26, 2021. 26 EO 14052, “Implementation of the Infrastructure Investment and Jobs Act,” November 18, 2021. 27 EO 13175, “Consultation and Coordination with Indian Tribal Governments,” November 6, 2000, charges all executive departments and agencies with engaging in regular, meaningful, and robust consultation with Tribal officials in the development of federal policies that have Tribal implications. 28 Memorandum on Tribal Consultation and Strengthening Nation-to-Nation Relationships | The White House 29 EO 14008, “Tackling the Climate Crisis at Home and Abroad,” January 27, 2021. 30 EXEC-2022-004682 - FINAL S1 J40 Letter 7-25-2022.pdf (energy.gov) 31 The term “equity” means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality. EO 13985.
32 EO 13985.
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13 As part of this whole-of-government approach, this funding action seeks to encourage eligible entities to include the participation of underserved communities33 and underrepresented groups in the activities they undertake with these funds. EECBG Program eligible entities are highly encouraged to include contractors and sub-contractors from groups historically underrepresented34,35 in their project scoping.
Further, Minority Serving Institutions36, Minority Business Enterprises, Minority Owned Businesses, Woman Owned Businesses, Veteran Owned Businesses, or entities located in an underserved community that meet the eligibility requirements (See Section III) are encouraged to be considered as sub-recipients for proposed EECBG Program-funded projects.
4.2 JUSTICE40 INITIATIVE
EECBG Program is a Justice40-covered program37 and as such contributes to the President’s goal that 40% of the overall benefits of Federal investments in clean energy and climate solutions flow to Disadvantaged Communities that for too long have faced disinvestment and underinvestment. DOE strongly encourages eligible entities to maximize project benefits and describe how these benefits will flow to Disadvantaged Communities to the greatest extent practicable. DOE has released General Guidance on Justice40 Implementation designed to help eligible entities and other interested parties incorporate Justice40 Initiative goals into DOE-funded projects. Information from the General Guidance on Justice40 Implementation is provided below.
33 The Office of Management and Budget Interim Implementation Guidance for Justice40 defines a disadvantaged community as either: (1) a group of individuals living in geographic proximity (such as census tract), or (2) a geographically dispersed set of individuals (such as migrant workers or Native Americans), where either type of group experiences common conditions.
34 According to the National Science Foundation’s 2019 report titled, “Women, Minorities and Persons with Disabilities in Science and Engineering”, women, persons with disabilities, and underrepresented minority groups— blacks or African Americans, Hispanics or Latinos, and American Indians or Alaska Natives—are vastly underrepresented in the STEM (science, technology, engineering and math) fields that drive the energy sector. For example, in the U.S., Hispanics, African Americans and American Indians or Alaska Natives make up 24 percent of the overall workforce, yet only account for 9 percent of the country’s science and engineering workforce. DOE seeks to inspire underrepresented Americans to pursue careers in energy and support their advancement into leadership positions. https://www.energy.gov/articles/introducing-minorities-energy-initiative 35 Note that Congress recognized in section 305 of the American Innovation and Competitiveness Act of 2017, Public Law 114-329: “[I]t is critical to our Nation’s economic leadership and global competitiveness that the United States educate, train, and retain more scientists, engineers, and computer scientists; (2) there is currently a disconnect between the availability of and growing demand for STEM-skilled workers; (3) historically, underrepresented populations are the largest untapped STEM talent pools in the United States; and (4) given the shifting demographic landscape, the United States should encourage full participation of individuals from underrepresented populations in STEM fields.”
36 Minority Serving Institutions (MSIs), including Historically Black Colleges and Universities/Other Minority Institutions as educational entities recognized by the Office of Civil Rights (OCR), U.S. Department of Education, and identified on the OCR's Department of Education U.S. accredited postsecondary minorities’ institution list. 37 Justice40 Initiative | Department of Energy
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14 Identifying Benefits
Benefits include (but are not limited to) measurable direct or indirect investments or positive project outcomes that achieve or contribute to the following in Disadvantaged Communities:
(1) a decrease in energy burden;
(2) a decrease in environmental exposure and burdens;
(3) an increase in access to low-cost capital;
(4) an increase in job creation, the clean energy job pipeline, and job training for individuals; (5) increases in clean energy enterprise creation and contracting (e.g., minority-owned or disadvantaged business enterprises);
(6) increases in energy democracy, including community ownership; (7) increased parity in clean energy technology access and adoption; and (8) an increase in energy resilience.
Not all eight policy priorities will be applicable to all DOE programs or funding opportunities. The matrix below provides examples of measurable benefits and how they map to the different DOE policy priorities mentioned above.
Policy Priorities Benefit Metric and Units
1. N/A Dollars spent [$] by DOE Covered Programs [$] in Disadvantaged Communities
2. Decrease energy burden in
Disadvantaged Communities
Dollars saved [$] in energy expenditures due to technology adoption in Disadvantaged Communities
Energy saved [MMBTU or MWh] or reduction in fuel [GGe] by Disadvantaged Communities
3. Decrease environmental
exposure and burdens for
Disadvantaged Communities
Avoided air pollutants (CO2 equivalents, NOx, SO2, and/or PM2.5) in Disadvantaged Communities
Remediation impacts on surface water, groundwater, and soil in Disadvantaged Communities
Reduction of legacy contaminated waste in Disadvantaged Communities
4. Increase clean energy jobs, job
pipeline, and job training for
individuals from
Disadvantaged Communities
Dollars spent [$] and/or number of participants from Disadvantaged Communities in job training programs, apprenticeship programs, STEM education, tuition, scholarships, and recruitment.
Number of hires from Disadvantaged Communities resulting from DOE job trainings
Number of jobs created for Disadvantaged Communities because of DOE program
Number of and/or dollar value [$] of partnerships, contracts, or training with minority serving institutions (MSIs)
5. Increase clean energy
enterprise creation and
contracting for minority or
disadvantaged businesses in
Disadvantaged Communities
Number of contracts and/or dollar value [$] awarded to businesses that are principally owned by women, minorities, disabled veterans, and/or LGBT persons
6. Increase energy democracy in
Disadvantaged Communities
Number of stakeholder events, participants, and/or dollars spent to engage with organizations and residents of Disadvantaged Communities, including participation and notification of how input was used 04/25/2023 C9 Page 18 of 43
15 Number of tools, trainings for datasets/tools, people trained and/or hours dedicated to dataset/tool and technical assistance and knowledge transfer efforts to Disadvantaged Communities
Dollars spent [$] or number of hours spent on technical assistance for Disadvantaged Communities
Dollar value [$] and number of clean energy assets owned by Disadvantaged Communities members
7. Increase access to low-cost
capital in Disadvantaged
Communities
Dollars spent [$] by source and purpose and location
Leverage ratio of private to public dollars [%]
Loan performance impact through dollar value [$] of current loans and of delinquent loans (30-day or 90-day) and/or number of loans (30-day delinquent or 90-day default)
8. Increase parity in clean energy
technology access and
adoption in Disadvantaged
Communities
Clean energy resource [MWh] adopted in Disadvantaged Communities
9. Increase reliability, resilience,
and infrastructure to support
reliability and resilience in
Disadvantaged Communities
Increase in community resilience hubs in Disadvantaged Communities Number and size (MWh) of community resilience infrastructure deployed in Disadvantaged Communities (e.g., Distributed solar plus storage, utility scale, Distributed Energy Resources, microgrids)
Identifying Disadvantaged Communities
Justice40 directs that 40% of the overall benefits realized from Covered Programs flow to “disadvantaged communities.” OMB’s Interim Implementation Guidance defines a community as either: (1) a group of individuals living in geographic proximity (such as census tract), or (2) a geographically dispersed set of individuals (such as migrant workers or Native Americans), where either type of group experiences common conditions. M-21-28 (whitehouse.gov).
Pursuant to the Interim Implementation Guidance, DOE has developed DOE’s working definition and tool to identify applicable Disadvantaged Communities at Energy Justice Dashboard (anl.gov). DOE will also recognize Disadvantaged Communities as defined and identified by the White House Council of Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST), which can be located at https://screeningtool.geoplatform.gov/ .
DOE’s working definition of disadvantaged is based on cumulative burden and includes data for thirty-six (36) indicators collected at the census tract level.
To be considered a Disadvantaged Communities under the DOE definition, a census tract must rank in or above the 80th percentile of the cumulative sum of the 36 burden indicators for its state and have at least 30% of households classified as low-income.
Nationwide, 13,581 census tracts were identified as disadvantaged (18.6% of 73,056 total U.S. census tracts). Additionally, federally recognized Tribal lands and U.S. territories, in their entirety, are categorized as Disadvantaged Communities in accordance with OMB’s Interim Implementation Guidance “common conditions” definition of community
Please see General Guidance on Justice40 Implementation for more information regarding identifying Disadvantaged Communities with available tools.
Justice40 Implementation:
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16 As a best practice, DOE recommends that recipients develop and sustain procedures and systems that can easily track what benefits are flowing to specific communities or locations (e.g., connecting benefits accrued with zip codes, and/or census tracts). Tracking benefits will allow funding recipients to measure progress and ensure programs are meeting intended goals. Further analysis of this data can also be used to empower program designers and lawmakers with information that is often needed to update or create new programs that better assist communities most in need.
To understand state, local, and Tribal government needs around equity and the Justice40 Initiative, DOE hosted listening sessions for state and local governments that discussed the Justice40 Initiative. The feedback received in those sessions informed this document and the IIJA application materials for the EECBG Program.
DOE may provide eligible entities with support and training on tools and resources for implementing the Justice40 initiatives (e.g., Justice40 dashboard, EJ Screen, LEAD tool, etc.), along with other training opportunities, such as webinars and workshops.
4.3 JOB GROWTH AND QUALITY
As an agency whose mission is to help strengthen our country’s energy prosperity, DOE strongly supports efforts to invest in the American workforce. This includes investments that expand quality jobs by adopting labor standards; ensure workers have a free and fair chance to join a union; engage responsible employers; reduce systemic barriers to accessibility of quality jobs; foster safe, healthy, and inclusive workplaces and communities; and develop a diverse workforce well-qualified to build and maintain the country’s energy infrastructure and to grow domestic manufacturing.
Through the EECBG Program, DOE intends to support eligible entities in their efforts to support good- paying jobs with the free and fair choice to join a union and support labor-management training partnerships, such as registered apprenticeships. In their project planning, eligible entities are highly encouraged to engage with an inclusive collection of local stakeholders including labor unions and community-based organizations that support or work with Disadvantaged Communities. The DOE Justice40 Guidance provides a helpful template strategy for undertaking strategic stakeholder engagement.
Stakeholder engagement is a relatively small cost that delivers high value. Proactive and meaningful engagement with stakeholders ensures stakeholders’ perspectives can be incorporated into the project plan, allows for transparency, and helps reduce or eliminate certain risks associated with the project.
Eligible entities are encouraged to include information in their EECBG Program application about how they have engaged labor and community stakeholders in ways that foster the negotiation of new community and workforce agreements.
DOE will provide future guidance and resources to assist eligible entities in incorporating workforce and community agreements and other tools into their EECBG Program-funded programs and activities, including blueprints and technical assistance resources focused on workforce and economic development.
4.4 TECHNICAL ASSISTANCE
Local governments and Indian tribes have the option to select a voucher for technical assistance and/or an equipment rebate in lieu of applying for and administering an EECBG Program formula grant. The intent in offering this option is to 1) reduce the administrative burden associated with applying for and managing a federal grant and 2) provide additional resources and assistance needed to accomplish eligible entities’ goals. Additional information on vouchers is provided in Section 9.0. 04/25/2023 C9 Page 20 of 43
17 In addition to the technical assistance vouchers described above, DOE plans to provide technical assistance support to all entities, to help accelerate their efforts and preparations to leverage other IIJA funding. This assistance may include tools, online resources, access to experts, webinars, peer learning opportunities, and local and regional workshops. The technical resources will span a wide range of topic areas, with an emphasis on the blueprint topics described below.
4.5 BLUEPRINTS
Blueprints are step-by-step roadmaps of energy project and programs that guide EECBG Program entities to success. By no means an exclusive list, the blueprints are a select list of high-impact projects and programs based on proven practices that entities can choose to follow. While entities may use their EECBG Program funds for a wide array of energy-related activities, those that choose to spend their EECBG Program funds exclusively on “key activities” listed in the blueprints should expect a streamlined and expedited application review because these key activities fall within the NEPA bounded categories (See Section 6.3 G). DOE will provide resources such as webinars, trainings, tools, and additional support along these topic areas.
The blueprints are designed to achieve several goals: 1) guide grantees towards high-impact and effective projects and programs; 2) focus DOE’s technical assistance and support in key areas; 3) support grantees as they leverage other BIL and Inflation Reduction Act (IRA) investments; and 4) streamline the application review and approval process for eligible entities. The blueprints span a wide variety of topic areas: energy planning, energy efficiency, renewable energy, transportation infrastructure, workforce and economic development, and financing.
Blueprint Topics:38
1. Energy Planning
2. Energy Efficiency
A. Energy Efficiency: Building Audits and Retrofits, including grid interactivity and electrification
B. Energy Savings Performance Contracts for Efficiency & Electrification in Municipal Buildings
C. Building Efficiency & Electrification Campaign
D. Building Performance Standards for Existing Buildings and Stretch Codes for New Construction
3. Renewables
A. Solar (and battery storage) Power Purchase Agreement B. Community Solar
C. Solarize Campaign
D. Renewable Resource Planning for Communities
4. Transportation
A. Electric Vehicles for Municipal Fleets
B. EV Charging Infrastructure for the Community
5. Unlocking Sustainable Financing Solutions for Energy Projects and Programs
6. Workforce Development
Key activities: Under each blueprint, DOE has identified key activities that are critical to successful program or project implementation. These activities have been reviewed and vetted as eligible uses of EECBG Program formula award funds. Activities within NEPA determination may not require additional NEPA review for initial approval, provided that the scope of proposed activities adheres to the NEPA determination, including Historic Preservation (see Section 6.3.G, NEPA Bounded Categories). Projects
38 This list shows proposed Blueprints by topic area. Blueprint topic areas may be added or revised, based on grantee and stakeholder interests, and effectiveness in achieving program goals. 04/25/2023 C9 Page 21 of 43
18 involving public works or infrastructure may be subject to Build America, Buy America and Davis Bacon Act requirements. Entities may choose to follow one or more blueprints and spend their EECBG Program funds on the recommended activities, which are pre-determined as eligible uses of EECBG Program funding. Doing so may lead to an expedited process for reviewing applications.
See “Appendix 2” for a chart that outlines blueprint topic areas and the key activities for a streamlined approval process. Streamlined approval means DOE has determined that these activities fall within categories of eligible EECBG Program activities, including NEPA determination of activities within Bounded Categories. Applicants must read their NEPA determination included in their award documents, which is DOE’s form that records DOE’s NEPA review of a project or activities. Applicants may be required to complete additional NEPA documentation.
5.0 FUNDING
Funding for all awards and future budget periods is contingent upon the availability of funds appropriated by Congress for the purpose of this program.
5.1 IIJA FORMULA ALLOCATIONS
The Infrastructure Investment and Jobs Act, Section 40552 provides $550 million for EECBG Program for fiscal year 2022, to remain available until expended. DOE will distribute $440 million in formula and competitive EECBG Program funding to eligible units of local government, states, and Indian tribes. Of the amount appropriated by IIJA, DOE will allocate funds as prescribed in section 543 of EISA:
• 34% to eligible units of local government-alternative 1 through formula grants; • 34% to eligible units of local government-alternative 2 through formula grants; • 28% to states through formula grants;
• 2% to Indian tribes through formula grants; and
• 2% for competitive grants to ineligible local governments and Indian tribes.39
IIJA allocations for EECBG Program direct formula awards from the DOE, as adjusted, are based on the following funding amounts:
• $299,200,000 for formula awards to eligible units of local government o $149,600,000 to eligible units of local government-alternative 1 o $149,600,000 to eligible units of local government-alternative 2 • $123,200,000 for formula awards to states
o Each state (except for those noted as exempt in section 6.3 E) is required to pass not less than 60% of its allocation through to cities and counties within the state that are ineligible for direct formula grants from DOE
• $8,800,000 for formula grants to eligible Indian tribes
Individual state, local and Tribal EECBG Program allocations are included as an attachment to this document. See the Federal Register Notice 87 FR13859 issued on June 29, 2022, for the allocation formulas.
5.2 COST MATCH
Cost match is not required for the EECBG Program. DOE encourages eligible entities to consider how they may leverage philanthropic and private sector funding to advance their goals and amplify the impact
39 42 U.S.C. 17153(a).
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19 of the IIJA funding and include strategies to facilitate it to the extent practicable in the plans they are submitting for IIJA Section 40552 funding. DOE may provide ideas and assistance toward eligible entities’ efforts during the application phase and implementation of the IIJA EECBG funds.
5.3 PROGRAM INCOME
DOE allows eligible entities to earn income in connection with EECBG Program activities to defray program costs. If the Local strategy or program activities (e.g., loan funds) includes such activities, entities should include an estimated amount of earned income in the budget portion of their application for financial assistance. Program income is defined in federal regulations as gross income earned by the recipient that is directly generated by a supported activity or earned because of the award. Program income includes but is not limited to:
• Income from fees for services performed.
• The use or rental of real or personal property acquired with grant funds. • The sale of commodities or items fabricated under a grant agreement. • License fees and royalties on patents and copyrights. • Payments of principal and interest on loans made with grant funds.
Program income does not include interest on grant funds except as otherwise provided in this subpart, program regulations, or the terms and conditions of the award. Nor does it include rebates, credits, discounts, refunds, etc., or interest earned on any of them.
(See 2 CFR Part 200.80 and 2 CFR Part 200.307 for further information.)
6.0 APPLICATION INSTRUCTIONS FOR IIJA EECBG PROGRAM FORMULA GRANTS
6.1 OVERVIEW
The application package for EECBG Program grants consists of the materials shown in Section 6.3, and includes the application for financial assistance, the budget, proposed energy efficiency and conservation strategy (if submitted at time of application) and required supporting documents. Applications must be submitted in accordance with the IIJA EECBG PROGRAM ALRD. Application due dates are identified on the cover page of the ALRD.
As a reminder, application documents, forms, and data submitted to the EECBG Program may be made available to the public at DOE’s discretion, following all applicable laws and regulations that protect confidential or proprietary information.
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20 6.2 APPLICATION REVIEW PROCESS
DOE will process EECBG Program applications for grants and vouchers on a rolling basis beginning January 18, 2023, and continuing through January 31, 2024.
Grant Award Application Reviews Prioritization and Phasing To assist in planning and phasing the processing of award applications, DOE is establishing four application periods for submission of grant applications. Applicants that meet one or more of the priority categories (see below), including Indian tribes, may apply in Periods 1 or 2. All States must apply in Period 1 or 2. All other Applicants may apply in Periods 3 or 4.
Application Period Application Submittal Timeframe Applications Accepted 1 January 18, 2023 – April 28, 2023 State, Local and Tribal Government applications in one or more priority
categories (see below) 2 June 1, 2023 – July 31, 2023
3 Sept 1, 2023 – Oct 31, 2023 All Other Local and Tribal Government applications 4 December 1, 2023 – Jan 31, 2024
Grant Applications will be accepted on a rolling basis, and DOE will prioritize its review of applications based on the order in which complete applications are received and as follows:
1. States40
2. Entities following blueprints
3. Teams
4. Entities with activities benefitting disadvantaged communities
5. Entities with activities limited to Energy Efficiency and Conservation Strategy Development, Technical Consultant Services (or other activities strictly limited to planning, analysis, and stakeholder engagement).
6. All other
Applicants are strongly encouraged to review the application instructions and submit complete applications. Submission of incomplete applications may result in a significant delay in processing individual grant awards.
Note: Due to the volume of applications, DOE may not review an application immediately upon submittal. Once a complete application is received and reviewed by DOE, it typically takes up to 60 days to process a formula grant. Applications are not necessarily considered complete upon submission. For additional information on application requirements, see the application instructions, which includes a pre-award checklist.
6.3 EECBG PROGRAM GRANT AWARD APPLICATION
The EECBG Program Formula Application (for grant awards only) consists of:
• Standard Form 424 (Application form)
• Standard Form 424A (Budget summary)
• Budget Justification
• Energy Efficiency and Conservation Strategy
• EECBG Program Activity File
• Required certifications
40 Expedited review of State applications will enable speedier subgrants to other local governments 04/25/2023 C9 Page 24 of 43
21 • Electronic copy (or web link) to the applicant’s latest single or program-specific audit as required by 2 CFR 200 Subpart F41
• An environmental questionnaire (if applicable)
• Pre-Award Information Sheet
Note: applicants choosing a Voucher do not need to submit a grant award application at this time.
Additional Guidance on the Voucher application process will be forthcoming from DOE.
DOE financial assistance regulations govern all funds budgeted in the EECBG Program Application, whatever their source. All funds must be spent on the activities described in the Application and addressed in the financial and performance reports required under the grant.
6.3. A. STANDARD FORM 424 (APPLICATION)
A completed and signed Standard Form 424 (SF424) containing current information must be submitted.
Please ensure all sections have been updated to reflect any changes, including changes to the person to be contacted on matters involving the application and the authorized representative. Applicants should select “New” in section 2.c.
The list of certifications and assurances referenced in Field 21 may be found here. Please verify compliance with Intergovernmental Review (SPOC List).
Once the SF424 is completed, add an attachment to the document with the name, title, phone number and email address for both the Principal Investigator and the Business Officer.
6.3. B. STANDARD FORM 424A (BUDGET)
The budget includes Standard Form 424A Summary which includes a Budget Justification. Each of these forms should be completed following the guidelines set out below.
Standard Form 424A: Applications must include a budget for all funds. It should be completed as follows:
• Section A: Budget Summary Lines 1-4, Columns (a) through (g). On line 1, enter new DOE funds. Section B: Budget Categories. Separate column headings (with the same name as the rows in Section A) should be utilized for each funding source. The total in Column G, Section A, must equal the total of all columns in Section B.
Budget Justification: The Budget Justification consists of a detailed explanation of the object class categories listed in line 6, Section B, of Standard Form 424A. In preparing the Budget Justification, states should address the following as requested for each budget category.
Personnel: Identify all positions to be supported by title and the amounts of time (e.g., % of time) to be expended on EECBG Program activities, the base pay rate, and the total direct personnel compensation.
41 For additional information, see CFR § 200.501, Audit requirements. "A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part." 04/25/2023 C9 Page 25 of 43
22 Personnel must be direct costs to the project and not duplicative of personnel costs included in the indirect pool that is the basis of any indirect rate applied for this project.
Fringe Benefits: If fringe cost rates are approved by a federal agency, identify the agency and date of latest rate agreement and include a copy of the rate agreement with the application. If fringe cost rates are not approved by a federal agency, explain how total fringe benefit costs were calculated. Your calculations should identify all rates used along with the base they were applied to (and how the base was derived), and a total for each (along with the grand total). established computation methodology approved for your jurisdiction, provide a copy with the SF424 Application.
Travel: Provide the purpose of travel, such as professional conference(s), DOE sponsored meeting(s), project monitoring, etc. Identify the number of trips, and the destination/location if known. Provide the basis for the travel estimate such as past trips, current quotations, federal or state travel regulations, etc.
All listed travel must be necessary or beneficial to the performance of the EECBG Program. All foreign travel must be identified and requires pre-approval.
Equipment: Equipment is defined as an item with an acquisition cost greater than $5,000 and a useful life expectancy of more than one year. List all proposed equipment and briefly justify its need as it applies to the objectives of this award. Provide a basis of cost such as vendor quotes, catalog prices, prior invoices, etc. If the equipment is being proposed as cost match and was previously acquired, provide the value of its contribution to the project and a rationale for the estimated value shown. If it is new equipment that will retain a useful life upon completion of the project, provide a rationale for the estimated value shown.
Also, indicate whether the equipment is being used for other projects or is 100% dedicated to this project.
Supplies: Supplies are defined as items with an acquisition cost of $5,000 or less or a useful life expectancy of less than one year. Supplies are generally consumed during the project performance. List all proposed supplies and the estimated cost and briefly justify the need for the supplies as they apply to the objectives of this award. Supply items must be direct costs to the project and not duplicative of supply costs included in the indirect pool that is the basis of any indirect rate applied for this project. Provide a basis of cost for each item listed. Examples include vendor quotes, prior purchases of similar or like items, published price list, etc.
Contractual: All sub-recipients, vendors, contractors and consultants and their estimated costs should be identified. Use TBD if the entity is unknown. Provide a brief description of the work to be performed or the service to be provided and reference the individual activity the work or service falls under. Include the basis of cost for each item listed (competitive, historical, quote, catalog, etc.).
Other Direct Costs: Other direct costs are direct cost items required for the project that do not fit clearly into other categories. These direct costs must not be included in the indirect costs (if indirect costs are proposed for this project). Examples are conference fees, meetings within the scope of work, subscription costs, printing costs, etc. that can be directly charged to the project and are not duplicated in indirect (overhead) costs. Provide a general description, cost, and justification of need for each direct cost item.
Provide a basis of cost for each item. Examples include vendor quotes, prior purchases of similar or like items, published price list, etc.
Indirect Costs: If the indirect cost rate has been approved by a federal agency, identify the agency and the date of the latest rate agreement and submit a copy of the agreement with the application. If the indirect cost rate has not been approved by a federal agency, provide the basis for computation of rates including the types of benefits to be provided, the rate(s) used and the cost basis for each rate. 04/25/2023 C9 Page 26 of 43
23 6.3. C. ENERGY EFFICIENCY AND CONSERVATION STRATEGY
Per section 545 of EISA, each eligible unit of government that receives funding under this program must submit an Energy Efficiency and Conservation Strategy for approval by DOE that meets the guidelines outlined below.42
Eligible Units of Local Governments and Indian Tribes: Proposed Energy Efficiency and Conservation Strategy (EECS)
Units of local government and Indian tribes must submit to the DOE a proposed EECS. The proposed strategy shall include:
• a description of the goals of the eligible unit of local government or Indian tribe for increased energy efficiency and conservation in the relevant jurisdiction; and • a plan for the use of the grant to assist the eligible unit of local government or Indian tribe in achieving those goals in accordance with the eligible use of funds outlined in section 544 of EISA.43
The EECS can be submitted through one of two methods:
a) submit the EECS with the application through the PAGE application system; or b) submit the EECS not later than 1 year after the effective date of the award.
If an entity chooses option B, the entity must submit an EECBG Program Activity File with their application and select Activity 1 (Energy Efficiency and Conservation Strategy). The EECS should be a comprehensive strategy that covers, at a minimum, all items detailed in the EECS Template provided by DOE. DOE will provide informational resources and technical assistance to support the development of comprehensive strategies.
Eligible Units of Local Government: Additional EECS Requirements In developing the strategy, section 544 of EISA directs that an eligible unit of local government shall:
• take into account any plans for the use of funds by adjacent eligible units of local governments that receive grants under the EECBG Program; and
• coordinate and share information with the State in which the eligible unit of local government is located to maximize the energy efficiency and conservation benefits.44
DOE has provided a streamlined EECS Template that local governments and Indian tribes may use when submitting their EECS, but the template is not required. If an entity chooses to submit an EECS using an alternative format, the information outlined in Part A of the EECS Template must be included in the submission. DOE has a maximum of 120 days after receiving a complete proposed strategy to approve or disapprove it. If DOE disapproves a proposed strategy, DOE shall provide to the grantee the reasons for the disapproval, and the grantee may revise and resubmit the proposed strategy as many times as necessary until DOE approves a proposed strategy.
States and Territories: Revision of the State Energy Conservation Plan
42 42 U.S.C. 17155(b).
43 42 U.S.C. 17155(b)(1)(B).
44 42 U.S.C. 17155(b)(1)(C).
04/25/2023 C9 Page 27 of 43
24 DOE has determined that states are already meeting the requirement outlined in 42 U.S.C. 17155(c)(2)(A) through their annual reporting for the State Energy Program.
States and Territories: EECS Requirements
States and Territories must submit to DOE a proposed EECS that:
1) establishes a process for providing subgrants to units of local government that are not eligible for direct formula grants from DOE; and
2) includes a plan of the state for the use of funds received under the EECBG Program to assist the state in achieving the goals established in EISA, in accordance with EISA section 545(c)(2)(B). 45 DOE has provided a streamlined EECS Template that states and territories may use when submitting their EECS, but the template is not required. If an entity chooses to submit an EECS using an alternative format, the information outlined in Part A of the EECS Template must be included in the submission. DOE has a maximum of 120 days after receiving a complete proposed strategy to approve or disapprove it. If DOE disapproves a proposed strategy, DOE shall provide to the state the reasons for the disapproval, and the state may revise and resubmit the proposed strategy as many times as necessary until DOE approves a proposed strategy.
6.3. D. EECBG PROGRAM ACTIVITIES FILE
As program-wide performance indicators are valuable to all EECBG Program stakeholders, metrics are an important element of formula grant reporting. For additional information, see the EECBG Program website for reporting guidance.
“Unpaired” metrics should be avoided. For example, if an eligible entity reports the number of buildings retrofitted, the square footage retrofitted must be included as well. DOE is working to identify metrics for future reporting on how EECBG Program-funded investments by recipients of DOE financial assistance impact additional topics including energy equity and environmental justice and how they relate to disadvantaged communities. DOE will provide guidance and technical assistance to assist eligible entities in addressing these metrics.
EECBG Program applicants are encouraged to consult with the EECBG Program to identify metrics that best capture the work they will be performing. EECBG Program activities that do not fit well into the metrics section should be reported in the Milestones section. Entities should list planned milestones in the Activity Milestones section in their applications. If entities are proposing use of EECBG Program funds to develop their EECS, the EECS should be listed as a separate activity with all subsequent project activities following the EECS completion milestone. Approval of the EECS by DOE is required prior to initiating any EECBG Program project activities.
For each Activity, applicants should identify the dollar amounts allocated. The sum of the budgets of each Activity must equal the totals in Section A of the SF424A.
6.3. E. LIMITATIONS
Administrative Expenses
Grantees should use their established definitions of “administrative expenses”. States may not use more than 10 percent of amounts provided under the program for administrative expenses46). Units of local
45 42 U.S.C. 17155(c)(2)(B).
46 42 U.S.C. 17155(c)(4).
04/25/2023 C9 Page 28 of 43
25 government and Indian tribes may not use more than 10 percent or $75,000, whichever is greater, for administrative expenses.47 EECBG Program funds may be used for compensation of employees or contractors. Whether or not the administrative cost cap applies depends on the nature of the responsibilities of the staff hired. Administrative activities are those that cannot be identified with any single program but are necessary to the general conduct of the activities of the entity organization; this could include such items as the overall direction of the organization, record keeping, budgeting, and business management.
States and Territories: Distribution of Subgrants
Each state that receives a grant under the program shall use not less than 60% of the amount received to provide subgrants to units of local government in the state that are not eligible for direct formula grants.
The state shall provide the subgrants no later than 180 days after the date on which DOE approves the proposed energy efficiency and conservation strategy.48 States are required to develop a subgranting process that expeditiously allocates funding, prevents fraudulent spending, generates robust reporting, and promotes the EECBG Program principles outlined in law.
The District of Columbia is explicitly included in the definition of a state, according to section 541(6)(B) of EISA.49 Because the District of Columbia is a consolidated city-state government, it is not subject to the requirement applicable to states that not less than 60% of state funding must be subgranted to local units of government.
American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Hawaii, and the U.S.
Virgin Islands have no eligible entities; these entities are exempt from having to provide subgrants.
Summary of Limitations on Use of Funds
State Formula-eligible unit of local
government and Formula-
eligible Indian tribe
Formula-ineligible
unit of local
government and
Formula-ineligible Indian tribe
Limit on administrative
expenses including the
cost of the reporting
requirements
Not more than 10% of
the amounts provided to
the State
Not more than the greater of
a. 10% of the amount provided
to the eligible unit of local
gov’t (or eligible Tribe); or b. $75,000
None
Amount required to be
provided as subgrants to
formula-ineligible units
of local government
Not less than 60% of the
amount provided to the
State (subgrantees must
be within the jurisdiction
of the State)
None None
6.3. F. OTHER FORMS
The following files should be submitted as attachments with your application if applicable:
47 42 U.S.C. 17155(b)(3)(A).
48 42 U.S.C. 17155(c)(1).
49 42 U.S.C. 17151(6)(B).
04/25/2023 C9 Page 29 of 43
26 1. Indirect Rate Agreement or Rate Proposal
2. Certifications regarding Lobbying (SF-LLL Disclosure Form to report lobbying)
3. A document providing the name, phone number and email address of the Program Manager and Business Officer
4. Pre-Award Information Sheet
6.3. G. NATIONAL ENVIRONMENTAL POLICY ACT INFORMATION
DOE must comply with NEPA prior to authorizing the use of Federal funds. DOE must also consider the effects on historic properties, pursuant to Section 106 of the National Historic Preservation Act (NHPA).
Additionally, DOE must consider the impacts to floodplains and wetlands, pursuant to 10 CFR Part 1022—Compliance with Floodplain and Wetland Environmental Review Requirements. To streamline these required reviews, DOE carries out each of these reviews under the umbrella of its NEPA review.
Entities should review and follow the NEPA determination in their award documents for restrictions, and the list of activities that have been categorically excluded from further NEPA review.
DOE has developed a NEPA and Historic Preservation training website with PowerPoint presentations, sample template documents (including a NEPA log, project scope of work, and a project layout), word document of an Environmental Questionnaire-1 (EQ1) and an EQ1 submission guide. Applicants are responsible for completing mandatory online NEPA training and reviewing the sample documents provided at www.energy.gov/node/4816816 prior to initiating projects. Recipients may contact the NEPA team with any questions at [email protected]. Subgrantees and 3rd party loan administrators are also encouraged to review the NEPA training website prior to initiating projects.
All states and most territories have a DOE executed Historic Preservation Programmatic Agreement (PA) to assist DOE with historic preservation compliance. The territory of Guam and Indian tribes do not have a PA. EECBG Program applicants that do NOT have a PA must follow the added restrictions in the NEPA determination to ensure compliance with the National Historic Preservation Act. All PAs and amendments can be found here.
For most applicants there are three paths to complete a NEPA review for EECBG Program activities covered by the ALRD-wide NEPA determination: 1) entities determine and document that a project falls within a Blueprint 2) entities determine and document that a project falls within a Bounded Category (see your NEPA determination for the complete list of Bounded Categories and restrictions, and documentation requirements), or 3) entities determine a project does not fit within a Bounded Category and submits an Environmental Questionnaire (EQ-1) in the Project Management Center for DOE to complete a NEPA review. Bounded Categories are activities listed in a NEPA determination that restrict the size, location, installation methods, or other elements to complete a project. EECBG Program recipients will receive approval from a DOE Contracting Officer with a NEPA determination for their records. All paths require a documented NEPA review. DOE has developed a NEPA log as a tool to assist entities in documenting that their projects fit within the Bounded Categories. A sample NEPA log can be found at www.energy.gov/node/4816816 . For applicants who do not choose a voucher, a Blueprint activity, or activities within the Bounded Categories, they will need to submit an EQ-1.
The two lists of Bounded Categories (one list for applicants with a PA and one list for applicants that do not have a PA) detailed below apply to activities funded by the EECBG Program ALRD. Most Bounded Categories are more restrictive than the Categorical Exclusion. The restrictions must be followed for the Bounded Category to be applicable.
NEPA reviews must be completed prior to initiating project activities; this includes DOE NEPA reviews and entities’ documentation of their review of Bounded Categories in a NEPA log. Project expenses incurred without either a DOE NEPA review or completion of an applicant’s NEPA log, as applicable for 04/25/2023 C9 Page 30 of 43
27 Bounded Categories activities, may be deemed unallowable and entities may be required to repay any unallowable funds to DOE.
The following list of Bounded Categories of activities is applicable to applicants applying with a DOE executed PA. The list of applicants and their PAs and amendments can be found here. This list below may be slightly different than the NEPA determination. The NEPA determination included in each recipient’s award documents must be followed.
Bounded Categories:
Administrative activities associated with management of the designated state, local government or Indian tribe, and management of programs and strategies to encourage energy efficiency and renewable energy, including energy audits.
1. Development of energy efficiency and conservation strategies, project-specific plans that may require feasibility studies, preparation of preliminary project design, outreach, and technical support to state agencies, local governments, Indian tribes and affected stakeholders. All project activities identified from these planning efforts and funded from this ALRD must be listed within the Bounded Categories. Projects not listed within these Bounded Categories would require submission of an Environmental Questionnaire (EQ-1).
2. Development and implementation of programs and strategies to encourage energy efficiency and renewable energy such as policy development and stakeholder engagement.
3. Development and implementation of classroom or virtual training programs.
4. Development and implementation of building codes including inspection services, and associated activities to support code compliance and promote building energy efficiency.
5. Implementation of financial incentive programs including rebates and energy savings performance contracts for existing facilities; grants and loans to support energy efficiency, renewable energy and energy/water saving projects. All project activities funded under a financial incentive program must be listed within the Bounded Categories or would require submission of an Environmental Questionnaire (EQ-1).
6. Funding commercially available energy or energy/water efficiency or renewable energy upgrades, provided that projects adhere to the requirements of the respective recipient’s DOE executed Historic Preservation Programmatic Agreement, are installed in existing buildings, do not require structural reinforcement, no trees are removed, are appropriately sized and are limited to:
a. Installation of insulation.
b. Installation of energy efficient lighting.
c. HVAC upgrades (to existing systems).
d. Weather sealing.
e. Purchase and installation of energy efficient or water efficient appliances and equipment (including, but not limited to, energy or water monitoring and control systems, and thermostats).
f. Retrofit of energy efficient pumps and motors, for such uses as wastewater treatment plants, where it would not alter the capacity, use, mission, or operation of an existing facility. g. Retrofit and replacement of windows and doors.
h. Installation of Combined Heat and Power Systems—systems sized appropriately for the buildings in which they are located, not to exceed peak electrical production at 300kW. 04/25/2023 C9 Page 31 of 43
28 7. Development, implementation, and installation of onsite renewable energy technology from renewable resources, provided that projects are installed in or on an existing structure or within the boundaries of a facility (defined as an already disturbed area due to regular ground maintenance), do not require structural reinforcement, no trees are removed, are appropriately sized, and are limited to:
a. Solar Electricity/Photovoltaic—appropriately sized system or unit not to exceed 60 kW. b. Battery storage, if applicable, would be attached to a structure (e.g., inside a garage), or within the boundaries of a facility.
c. Wind Turbine—20 kW or smaller.
d. Solar Thermal (including solar thermal hot water)—system must be 200,000 BTU per hour or smaller.
e. Ground Source Heat Pump—5.5 tons of capacity or smaller, horizontal/vertical, ground, closed-loop system8
8. Biomass Thermal—3 MMBTUs per hour or smaller system with appropriate Best Available Control Technologies (BACT) installed and operated.
9. Installation of fueling pumps and systems for fuels such as compressed natural gas, hydrogen, ethanol, and other commercially available biofuels, (but not storage tanks) installed on the site of a current fueling station.
10. Purchase of alternative fuel vehicles.
11. Installation of electric vehicle supply equipment (EVSE), such as electric vehicle charging stations, including testing measures to assess the safety and functionality of the EVSE, restricted to existing footprints and levels of previous ground disturbance, within an existing parking facility defined as any building, structure, land, right-of-way, facility, or area used for parking of motor vehicles. All activities must use reversible, non-permanent techniques for installation, where appropriate, use the lowest profile EVSE reasonably available that provides the necessary charging capacity; place the EVSE in a minimally visibly intrusive area; use colors complementary to surrounding environment, where possible, and are limited to the current electrical capacity. This applies to Level 1, Level 2, or Level 3 (also known as Direct Current (DC) Fast Charging) EVSE. Installation of EVSE on Tribal Lands, or installations of EVSE that may affect historic properties located on Tribal Lands, is excluded from this Bounded Category, without first contacting your DOE Project Officer who will coordinate with the DOE NEPA Specialist.
12. Installation of battery storage systems including electrochemical and thermal storage systems, provided that projects adhere to the requirements of the respective applicant’s DOE executed Historic Preservation PA are installed in or on an existing structure or within the boundaries of a facility (defined as an already disturbed area due to regular ground maintenance), do not require structural reinforcement, no trees are removed, and are appropriately sized not to exceed 1,000 kWh.
All EECBG Program applicants shall adhere to the restrictions of the relevant DOE executed Historic Preservation Programmatic Agreement, as applicable.
The following list of Bounded Categories of activities is applicable to applicants from Guam and Indian tribes-entities without a DOE executed Historic Preservation Programmatic Agreement (PA). This list may be slightly different than the NEPA determination. The NEPA determination included in each entities’ award documents must be followed. 04/25/2023 C9 Page 32 of 43
29 Bounded Categories:
1. Administrative activities associated with management of the designated entity and management of programs and strategies to encourage energy efficiency and renewable energy, including energy audits.
2. Development of plans that may require feasibility studies, preparation of preliminary project design, outreach and technical support to local governments, Indian Tribes and affected stakeholders. All project activities identified and funded from these planning efforts from this ALRD must be listed within the Bounded Categories. Projects not listed within these Bounded Categories would require submission of an Environmental Questionnaire (EQ-1).
3. Development and implementation of programs and strategies to encourage energy efficiency and renewable energy such as policy development and stakeholder engagement.
4. Development and implementation of training programs.
5. Development and implementation of building codes including inspection services, and associated activities to support code compliance and promote building energy efficiency.
6. Implementation of financial incentive programs including rebates and energy savings performance contracts for existing facilities; grants and loans to support energy efficiency, renewable energy and energy/water saving projects. All project activities funded under a financial incentive program must be listed within the Bounded Categories or will require submission of an Environmental Questionnaire (EQ-1).
7. Funding commercially available energy or energy/water efficiency or renewable energy upgrades, provided that projects are installed in or on existing buildings less than 45 years old, do not require structural reinforcement, remove no trees, are appropriately sized and are limited to:
a. Installation of insulation
b. Installation of energy efficient lighting
c. HVAC upgrades (to existing systems)
d. Weather sealing
e. Purchase and installation of energy efficient or energy/water efficient home and commercial appliances and equipment (including, but not limited to, energy or water monitoring and control systems, and thermostats)
f. Retrofit of energy efficient pumps and motors, for such uses as wastewater treatment plants, where it would not alter the capacity, use, mission, or operation of an existing facility g. Retrofit and replacement of windows and doors
h. Installation of Combined Heat and Power System—systems sized appropriately for the buildings in which they are located, not to exceed peak electrical production at 300kW.
8. Development, implementation, and installation of onsite renewable energy technology from renewable resources, provided that projects are installed in or on an existing structure less than 45 years old or within the boundaries of a facility less than 45 years old, (defined as an already disturbed area due to regular ground maintenance), do not require structural reinforcement, no trees are removed, are appropriately sized, and limited to:
a. Solar Electricity/Photovoltaic—appropriately sized roof mounted system or unit not to exceed 60 kW
b. Battery storage, if applicable, would be attached to a structure (e.g., inside a garage), or within the boundaries of a facility
c. Wind Turbine—20 kW or smaller
04/25/2023 C9 Page 33 of 43
30 d. Solar Thermal (including solar thermal hot water)—system must be 200,000 BTU per hour or smaller
e. Ground Source Heat Pump—5.5 tons of capacity or smaller, horizontal/vertical, ground, closed- loop system
f. Biomass Thermal—3 MMBTUs per hour or smaller system with appropriate Best Available Control Technologies (BACT) installed and operated.
9. Installation of fueling pumps and systems for fuels such as compressed natural gas, hydrogen, ethanol, and other commercially available biofuels, (but not storage tanks).
10. Purchase of alternative fuel vehicles including but not limited to cars, buses, ferries, and other forms of transportation.
11. Installation of electric vehicle supply equipment (EVSE), such as electric vehicle charging stations including testing measures to assess the safety and functionality of the EVSE, restricted to existing footprints and levels of previous ground disturbance, within an existing parking facility defined as any building, structure, land, right-of-way, facility, or area used for parking of motor vehicles. All activities must use reversible, non-permanent techniques for installation, where appropriate, use the lowest profile EVSE reasonably available that provides the necessary charging capacity; place the EVSE in a minimally visibly intrusive area; use colors complementary to surrounding environment, where possible, and are limited to the current electrical capacity. This applies to Level 1, Level 2, or Level 3 (also known as Direct Current (DC) Fast Charging) EVSE. Installation of EVSE on Tribal Lands, or installations of EVSE that may affect historic properties located on Tribal Lands, is excluded from this Bounded Category, without first contacting your DOE Project Officer who will coordinate with the DOE NEPA Specialist.
12. Installation of battery storage systems including electrochemical and thermal storage systems, provided that projects adhere to the requirements of the respective applicant’s DOE executed Historic Preservation PA are installed in or on an existing structure or within the boundaries of a facility (defined as an already disturbed area due to regular ground maintenance), do not require structural reinforcement, no trees are removed, and are appropriately sized not to exceed 1,000 kWh.
Recipients must document all activities (e.g., via a NEPA log) to ensure compliance with the restrictions of the Bounded Categories. The documentation must be available for DOE review upon request and submitted quarterly to [email protected].
Recipients are responsible for identifying and promptly notifying DOE of extraordinary circumstances, cumulative impacts, or connected actions that may lead to significant impacts on the environment, or any inconsistency with the “integral elements” (as contained in 10 C.F.R. Part 1021, Appendix B) as they relate to a particular Project; compliance with Section 106 of the NHPA and 10 CFR Part 1022.4— Compliance with Floodplain and Wetland Environmental Review Requirements, as applicable.
Entities must adhere to the requirements included in the “Historic Preservation” term included in the Special Terms and Conditions of the financial assistance agreement.
DOE is required to consider floodplain management and wetland protection as part of its environmental review process (Subpart B of 10 CFR 1022). As part of this required review, DOE determined requirements set forth in Subpart B of 10 CFR 1022 are not applicable to the activities described in Bounded Categories 1–7g above that would occur in a floodplain or wetland because the activities would not have short-term or long-term adverse impacts to the floodplain or wetland. These activities are administrative or minor modifications of existing facilities to improve environmental conditions. All other 04/25/2023 C9 Page 34 of 43
31 integral elements and environmental review requirements are still applicable. All projects (except those under Bounded Categories 1–7g) must document that project activities do not occur in a floodplain or wetland. If the project activities do occur in a floodplain or wetland (except those under Bounded Categories 1–7g), those project activities are subject to additional NEPA review and approval by DOE.
For activities/projects requiring additional DOE NEPA review, entities must complete the environmental questionnaire ( https://www.eere-pmc.energy.gov/NEPA.aspx) for review by DOE.
7.0 APPLICATION FORMAT AND CHANGES (FORMULA GRANTS)
7.1. A. CONTENT AND FORM OF APPLICATION
The EECBG Program application must be submitted via the PAGE online system here. All applicants must first establish an account in PAGE to submit an application. Instructions will be submitted to the authorized contact, as designated in the applicant’s pre-application information sheet.
The PAGE Help System has detailed instructions for creating and submitting an EECBG Program application. The Help instructions can be found in PAGE by selecting ‘help’ from the blue horizontal menu bar, and under the Contents in the left panel selecting ‘EECBG’ and the subtopic for ‘New Grant Application’.
From the Home PAGE, select ‘Create New Application.’ Then, select the ‘Add New Application Package’. Once the application has been completed, be sure to validate and submit the application.
7.1. B. OTHER SUBMISSION AND REGISTRATION REQUIREMENTS
Submission of application documents and award documents, including modifications, through electronic systems used by the DOE, including PAGE and FedConnect, constitutes the authorized representative’s approval and acceptance of the terms and conditions of the award. Award acknowledgement via FedConnect constitutes the authorized representative’s electronic signature.
7.1. C. QUESTIONS/AGENCY CONTACTS
Questions relating to the registration process, system requirements, how an application form works, or the submittal process must be directed to the PAGE hotline at 866-492-4546, or [email protected].
Entities should contact the EECBG Program with specific questions at the contacts provided below.
EECBG Program email: [email protected].
For general information regarding the EECBG Program, please visit the EECBG Program website, at:
Energy Efficiency and Conservation Block Grant Program | Department of Energy.
8.0 REPORTING REQUIREMENTS
Reporting requirements for each eligible entity are identified on the Financial Assistance Reporting Checklist (FARC), DOE EERE 355, attached to the award agreement.
Additional information and guidance that addresses the scope and purpose of reporting for EECBG Program formula grants and vouchers is available on the EECBG program website.
Awards initiated since 10/1/2010 are subject to the requirement of Reporting Subawards and Executive Compensation at https://www.fsrs.gov . Please see Part V.C. of the Administrative and Legal Requirements Document (ALRD) for additional information. 04/25/2023 C9 Page 35 of 43
32 9.0 VOUCHERS
9.1 PURPOSE
DOE has sought to simplify and streamline the process for entities that choose a voucher in lieu of a grant. Entities that opt into a voucher are not required to apply for and administer a direct federal grant.
Entities choosing vouchers will submit a separate application using a streamlined process with reduced documentation, monitoring and reporting requirements compared to applying for and administering a federal grant. For example, if an entity opts in for a voucher, entities that have never managed a federal grant before will not be required to establish the necessary financial management systems, including accounting for federal funds, invoicing, and internal audits typically needed to comply with federal grant management requirements as described in the following regulations:
• 2 CFR §200.302 Financial management
• 2 CFR §200.303 Internal controls
• 2 CFR § 200,305 Federal payment
• 2 CFR §200.232 Requirements for pass-through entities2 CFR §200.344 Closeout • 2 CFR §200.345 Post-closeout adjustments and continuing responsibilities. • 2 CFR § 200 Subpart F – Audit Requirements.
9.2 A. TECHNICAL ASSISTANCE VOUCHERS
Vouchers for technical assistance will be used to access support from experts, across a wide array of high- value opportunities in energy efficiency, renewable energy, transportation, and related areas. Activities will fit into the following broad categories:
• Policy, Planning & Program Design
• Building Retrofits Planning and Design
• Engineering and Modeling
• Community and Stakeholder Engagement
• Program Administration and Implementation Support
9.2 B. VOUCHERS FOR EQUIPMENT REBATES
Vouchers for equipment purchase and installation rebates will also be available to reimburse entities for the purchase of energy-related equipment used to meet the program goals. Equipment eligible for rebates will span a wide range of technologies that are deployed to lower fossil fuel use or increase energy efficiency. Examples include:
• Efficient materials and technologies used to retrofit buildings such as HVAC equipment, air source heat pumps, heat pump water heaters, windows, doors, insulation, and other weatherization materials;
• Electric vehicles and electric vehicle charging stations and equipment; • Equipment for renewable energy installations, including wind, solar, and storage; • Metering equipment; and
• Ancillary equipment such as electric system upgrades to accommodate technology installations.
Voucher applications must be reviewed and approved, including additional NEPA review and approval if activities are outside of the NEPA determination (i.e., the DOE form that documents DOE’s NEPA review of a project or activities), prior to the completion of a purchase or installation of equipment to be eligible for reimbursement.
04/25/2023 C9 Page 36 of 43
33 9.3 VOUCHER APPLICATION PROCESS
Voucher applications will be accepted on a rolling basis, and review of applications will be prioritized as follows:
• Teams opting into vouchers
• Voucher applicants following one or more EECBG Program Blueprints • Entities opting for vouchers with >40% of their program benefits going to disadvantaged communities
• All other Local or Tribal entities choosing a voucher In addition, applications that propose and prioritize activities that will benefit disadvantaged communities may be considered higher priority and may be reviewed before other applications.
Applicants are strongly encouraged to review the application and submit complete applications.
Submission of incomplete applications may result in a significant delay in processing individual grant awards.
A comparison of the necessary application documents and some administrative steps needed for a grant vs. a voucher is shown in Appendix 1. While entities choosing a voucher must still submit and receive approval for their energy efficiency and conservation strategy as described below, they will follow a simplified application process to receive a voucher, which briefly describes their voucher selection, its intended use, and expected outcomes, such as energy savings, job creation, leveraged funds and benefits to disadvantaged communities.
DOE strongly encourages the following local and Tribal entities to consider the voucher option for their formula award:
1. Entities with limited or no experience managing federal grant awards
2. Entities with limited internal staff or local capacity to manage an EECBG Program formula grant over multiple years
3. Entities receiving EECBG Program award allocations of $250,000 or less Additional information on the voucher application process, scope of technical assistance services and administrative requirements for participating in the voucher program will be provided in forthcoming Guidance from the EECBG Program.
Applicants are strongly encouraged to review the application and submit complete applications.
Submission of incomplete applications may result in a significant delay in processing individual grant awards.
10.0 CONCLUSION
The EECBG Program seeks to support communities on their path to clean energy and decarbonization.
The EECBG Program will assist States, local governments, and Indian tribes as they advance efficient and effective programs to develop and deploy equitable and inclusive community energy savings strategies, clean energy infrastructure investments and projects. Through the EECBG Program, DOE will provide direct funding, technical assistance, and local, regional, and national coordination support to States, Local Governments and Indian tribes and their stakeholders to build a clean and equitable energy economy that enhance United States competitiveness, drive the creation of good-paying union jobs, tackle the climate crisis, and ensure stronger access to economic, environmental, and other benefits for disadvantaged communities and promotes equity and inclusion in workforce opportunities and 04/25/2023 C9 Page 37 of 43
34 deployment activities, as identified in the Biden Administration’s Justice40, job growth and quality, and DEIA goals.
DOE looks forward to continuing to work with its State, Local and Tribal partners to implement new and innovative approaches that achieve sustained progress toward energy savings, carbon emissions reductions, and building more equitable and inclusive communities.
Henry McKoy, Director
Office of State and Community Energy Programs
Office of the Under Secretary for Infrastructure
U.S. Department of Energy
04/25/2023 C9 Page 38 of 43
35 REFERENCE MATERIAL
IIJA EECBG Administrative and Legal Requirements Document IIJA EECBG Program Formula Allocations
IIJA EECBG Program Pre-Award Information Sheet
IIJA EECBG Program Energy Efficiency and Conservation Strategy Templates 04/25/2023 C9 Page 39 of 43
36 APPENDIX 1: APPLICATION MATERIALS CHECKLIST
Grant Voucher50
Register in SAM (allow several weeks)
Obtain DUNS number for all prime and sub
awardees
Obtain EIN and UEI number
Register in FedConnect
Register in PAGE
Contact information for Principal Investigator and
Business Officer
Contact information for Principal Investigator and
Business Officer
Teaming partners (if applicable) Teaming partners (if applicable) Energy Efficiency and Conservation Strategy Energy Efficiency and Conservation Strategy EECBG Program Activity file For TA voucher: Summary description of the technical assistance request, including a proposed
scope of work and budget.
For Rebate: Summary description of the requested
equipment, proposed location and facility type (i.e.,
municipal building, school, commercial or residential building, or site) and estimated cost Verify compliance with Intergovernmental Review
SPOC list
EECBG Program Pre-Award Information Sheet EECBG Program Pre-Award Information Sheet (Voucher sections only)
Standard Form 424 (Application form) EECBG Formula Program Voucher Application Standard Form 424A (Budget summary)
Budget Justification:
- Personnel, fringe benefits, travel, equipment,
supplies, contractual, other direct costs, indirect
costs
Authorized Applicant: (Assurance Letter or Tribal
Resolution)
Assurance Letter: Davis Bacon Act
A link to the applicant’s latest single audit as
required by 2 CFR 200 Subpart F
NEPA Statement of Work (for expedited reviews)
NEPA Environmental Questionnaire (EQ-1), if
directed to submit
NEPA environmental questionnaire (EQ-1), If
directed to submit.
Indirect Rate Agreement or Rate Proposal (if
applicable)
Certifications regarding Lobbying (SF-LLL
Disclosure Form to report lobbying)
50 Additional details on the voucher and rebate application process will be distributed to entities eligible for EECBG Program formula grants.
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37 APPENDIX 2: BLUEPRINTS – TOPICS AND KEY ACTIVITIES WITH STREAMLINED
REVIEWS
Blueprint Topic Key Activities with Streamlined Reviews
1. Energy Planning Energy data collection to assist in reducing fossil fuel emissions, reducing total energy use, or improving energy efficiency
Develop energy vision, goals, and strategies
Stakeholder engagement, education, and outreach
Write, adopt, and publicize energy plan
2.A. Energy Building energy assessments
Efficiency: Building Energy audits Audits and Retrofits, including grid
interactivity and
electrification
Building upgrades, including energy efficiency, grid-interactivity, and electrification upgrades (as defined below)
2.B. Energy Savings Explore potential future financing options Performance Contracts
for Efficiency and
Electrification in
Procurement of energy savings performance contractor and legal support/technical assistance
Municipal Buildings
2.C. Building Develop energy retrofit goal and strategies, e.g., how to reach disadvantaged or Efficiency & low-income residents or small businesses
Electrification
Campaign
Bulk procurement of building energy efficiency and electrification equipment (as described below) to be installed by for-profit and non-profit installers and contractors
Procurement, legal and technical support and assistance Communications and website development
Program education, outreach, and advertising
2.D. Building Stakeholder engagement, education, and outreach Performance Data collection & benchmarking Standards for Existing Buildings and Stretch Metric selection and target setting Codes for New Determine compliance and enforcement approach Construction
3.A. Solar (and battery
storage) Power
Purchase Agreement
Site assessment
Project savings assessment
Procurement & legal support
Installation of solar systems & battery storage (Limited to solar projects ≤60kW and 1,000kWh battery storage, with further restrictions defined below)
3.B Community Solar Site assessment
04/25/2023 C9 Page 41 of 43
38 Stakeholder engagement, education, and outreach
Procurement of developer, legal and technical support
Communications, program education and promotion, including advertising and program website development
Installation of solar panels (Limited to projects ≤60kW with further restrictions defined below)
3.C. Solarize
Campaign
Design program details, including financing options for customers and how to support low-income customers and EJ communities
Stakeholder engagement through education and outreach
Procurement of developer & legal, technical support
Program education, outreach, and advertising
3.D. Renewable
Resource Planning for
Communities
Stakeholder engagement through education and outreach
Plan development & publication
Preliminary resource planning and siting assessments
4.A. Electric Vehicles
for Municipal Fleets
Develop fleet replacement plan, including stakeholder engagement and input Siting planning and preliminary assessments
Develop utility data sharing agreement
Develop charging plan including cost assessment of electric bill Procurement, legal, and technical support to purchase EVs and EVSE Installation of electric vehicle supply equipment (further restrictions listed below)
4.B. EV Charging
Infrastructure for the
Community
Procurement, legal and technical support to purchase EVSE Siting plan and site assessments
Stakeholder engagement through education and outreach
Installation of electric vehicle supply equipment (EVSE) (further restrictions listed below)
Communications and program promotion
5. Unlocking
Sustainable Financing
Solutions for Energy
Projects and Programs
Market analysis; programmatic research and design
Stakeholder engagement through outreach and education
Legal and technical support
Program evaluation
6. Workforce
Development
Program design, and curriculum development
Stakeholder engagement through education, outreach, and program advertising Paying trainers and trainees including supplemental services 04/25/2023 C9 Page 42 of 43
39 Limitations on Expedited Reviews: Recipients’ proposed activities must fall within the activities listed above, with the below restrictions, in order to receive an expedited NEPA review.
Building Energy Efficiency: Commercially available energy or water efficiency or renewable energy upgrades, provided that projects adhere to the requirements of the respective applicant’s DOE executed Historic Preservation Programmatic Agreement (PA), or, if an applicant doesn’t have a PA, projects are restricted to structures less than forty-five (45) years old, and all projects are installed in or on existing buildings, do not require structural reinforcement, are appropriately sized, and are limited to:
a. Installation of insulation.
b. Installation of energy efficient lighting.
c. HVAC upgrades (to existing systems).
d. Weather sealing.
e. Purchase and installation of energy/water efficient residential and commercial appliances and equipment (including, but not limited to, grid-interactive building technologies, energy or water monitoring and control systems, thermostats, heat pumps, air conditioners, and related software). f. Retrofit of energy efficient pumps and motors, for such uses as (but not limited to) wastewater treatment plants, where it would not alter the capacity, use, mission, or operation of an existing facility.
g. Retrofit and replacement of windows and doors.
A list of states and territories including their Programmatic Agreements and Executed Amendments can be found on the DOE Historic Preservation – Executed Programmatic Agreements website.
Solar installations that will receive expedited NEPA review must be appropriately sized, are not to exceed 60kW, must be installed on existing buildings or on an existing structure or within the boundaries of a facility (defined as an already disturbed area due to regular ground maintenance), must not require structural reinforcement, and must not remove any trees. Further, all activities must adhere to the requirements of the respective applicants’ DOE executed Historic Preservation Programmatic Agreement, or if an applicant doesn’t have a PA, projects are restricted to structures less than forty-five (45) years old.
Installation of battery storage systems including electrochemical and thermal storage systems, provided that projects adhere to the requirements of the respective applicant’s DOE executed Historic Preservation PA are installed in or on an existing structure or within the boundaries of a facility (defined as an already disturbed area due to regular ground maintenance), do not require structural reinforcement, no trees are removed, and are appropriately sized not to exceed 1,000 kWh.
A list of states and territories including their PAs and amendments can be found here.
Installation of EVSE, including testing measures to assess the safety and functionality of the EVSE, are restricted to existing footprints and levels of previous ground disturbance, within an existing parking facility defined as any building, structure, land, right-of-way, facility, or area used for parking of motor vehicles. All activities must use reversible, non-permanent techniques for installation, where appropriate, use the lowest profile EVSE reasonably available that provides the necessary charging capacity; place the EVSE in a minimally visibly intrusive area; use colors complementary to surrounding environment, where possible, and are limited to the current electrical capacity. This applies to Level 1, Level 2, or Level 3 (also known as Direct Current (DC) Fast Charging) EVSE. Installation of EVSE on Tribal Lands, or installations of EVSE that may affect historic properties located on Tribal Lands, is excluded from this Bounded Category, without first contacting your DOE Project Officer who will coordinate with the DOE NEPA Specialist.
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