5-months remain for local governments to apply for EECBG formula awards  

Nearly three years ago, President Biden signed the Infrastructure and Investment Jobs Act (IIJA), also known as the Bipartisan Infrastructure Bill (BIL), into law enacting an unprecedented level of investment in our nation’s energy systems.  

The Energy Efficiency Conservation Block Grant (EECBG) Program, originally launched in 2007, was reinvigorated by $550 million of funding earmarked in BIL. While newfound financial support expanded the reach of EECBG, the program purpose remained unchanged: to invest in communities across the country, supporting the development of energy efficiency, energy conservation and renewable energy.  

EECBG divides grant awards into four funding pools:

• State formula awards (28%)
• Local government formula awards (68%)
• Tribal nation formula awards (2%)
• Competitive funding awards (2%)

Formula awards are non-competitive, meaning the 2,709 eligible state, local and tribal governments have already been allocated funding, but parties must apply to receive them. As of May 29, 2024, the U.S. Department of Energy (DOE) has awarded a total of $130,592,650 in EECBG formula funding to 151 communities.

Formula award eligibility is limited to state energy offices and cities with a population greater than 35,000, or at a minimum the 10 largest cities in each state. DOE has also constructed the EECBG Voucher Program, which provides eligible parties with an expedited process to receive rebates and technical assistance. State governments are required to subgrant at least 60% of total EECBG funding to cities and counties that do not receive formula funding from the Department of Energy. Cities that did not qualify for formula funding were also eligible to submit for the EECBG Competitive Program, which awarded $8.8 million to 12 communities in October 2023.  

In MEEA’s 13-state region, 32 out of 508 eligible parties (13 state governments, 439 local governments and 56 tribal governments) have received formula award funding, including 12 of 13 state governments. South Dakota was the only state in the Midwest to refuse formula funding.  

Geographic Distribution of Midwest Region Formula Awards

Across the Midwest’s state-level awards, common project trends include sub-granting to local governments to:  

• Develop clean energy plans (IL, MO & WI).
• Conduct energy audits and install energy efficiency and clean energy upgrades (IL, MI, MN, MO & WI).
• Upgrade street and traffic signal lightbulbs with efficient technologies (KS, NE, ND & OH).
• Install EV charging stations (ND & NE).
• Pursue flexible energy efficiency and/or clean energy projects (IA, IN, KY & MO).

While local government grants and project scopes tend to be smaller in scale, these programs can represent an important launching point for communities with historically limited capacities. Some program highlights include:  

Local governments allocating funds for climate action planning:

• Keweenaw Bay Indian Community: Hire technical consultants to help strategize future efforts and update climate action plans.  
• Evansville, IN: Cover a whole community greenhouse gas inventory, the development of an energy conservation strategic plan and an update to the city’s existing climate action plan.  
• Kansas City, MO; Lancaster County, NE; Lincoln, NE; and St. Paul, MN: Utilize funding to develop and/or execute local climate action plans.  

Local governments dedicating funds for public infrastructure upgrades:  

• Ann Arbon, MI: Use funds to renovate a community center with energy efficient technology and practices.
• Village of Romeoville, IL and St. Louis County, MO: Utilize funding to install EV charging stations.  
• Dakota County, NE and Oak Creek, WI: Replace streetlights and stoplights with energy efficient LED lightbulbs.  
• Cincinnati, OH: Kickstart a revolving loan program, creating a long-term mechanism for advancing energy efficiency.  

The beauty of EECBG funding is that local governments can tailor this opportunity to push forward energy and climate initiatives that are most important to their communities.  

Decorah, IA was the only competitive award within the Midwest region. Listed below are the communities in MEEA’s 13-state region to receive EECBG formula award funding as of May 31, 2024:

Although EECBG state government applications closed, local governments have until October 31, 2024, and tribal governments until May 31, 2025, to apply for formula awards and/or vouchers. EECBG provides cities, towns and tribes of all sizes with flexible funds to boost energy efficiency and decarbonization efforts in their communities. This opportunity creates immediate energy savings and lays the groundwork for communities to maximize the impact of further federal programs yet to roll out from BIL and the Inflation Reduction Act.  

Contact Clara Stein, MEEA’s Associate, Legislative & Regulatory Affairs, if you have questions or would like to learn more about the EECBG Program.