Federal Funding Programs for Clean Energy Deployment: A Guide for States

Sfondo

For states eager to seize the economic and public health benefits of clean energy, investment in the power sector is critical. The Bipartisan Infrastructure Law (BIL), Inflation Reduction Act (IRA), and other federal legislation and programs spur investment in this sector while also serving ratepayer interests by reducing implementation costs. This document serves as a resource for state officials, utilities commissions, businesses, communities, advocates, and others to understand how these programs can be leveraged to advance clean electricity and reap associated health, supply chain, workforce, and community benefits. 

Many states are grappling with how to meet increased electricity demand, while ensuring their communities, businesses, and industries have access to reliable, affordable, and clean energy. Load demand projections have increased due to growth of data centers, reshoring manufacturing, and electrification. In addition, many states want to expand zero-emission resources to achieve their clean energy goals. The power sector is the largest stationary source of greenhouse gases in the nation, emitting roughly one-third of U.S. emissions.¹ Other sectors, such as buildings, industry, and transportation, are increasingly turning to electricity for energy, intensifying the importance of building out a clean power system.

Federal Funding to Support Power System Investments

Federal funding is available across all aspects of the power system to help support clean energy expansion. A major portion of federal funding allocated for clean energy under BIL and IRA has gone to this sector.² For example, of the estimated $390 billion in tax credits for clean energy offered under the IRA, over forty percent is projected to go directly to the power sector. Tens of billions of dollars in grants have flowed to the sector through programs stewarded by the Department of Energy (DOE), the Environmental Protection Agency (EPA), and the U.S. Department of Agriculture (USDA).

As indicated in the appendix, some programs have deployed all or most of the appropriated funding as of the publication of this resource – much of it for the benefit of the states. State leaders, however, should be aware that more opportunities exist to draw federal funding to key power sector investments within their borders. Many key initiatives – such as the development of State Energy Finance Institutions (SEFIs) with the DOE’s Loan Program Office, the recent capitalization of private green financiers through EPA’s Greenhouse Gas Reduction Fund (GGRF), and the Clean Energy Production Tax Credit (45Y) – are still available. Other provisions, such as a state’s ability to receive direct payment for tax credits issued to power sector projects in which it has direct ownership under the “elective pay” provisions of the IRA, are available for public power sector investments. Lastly, because of the breadth of the power sector’s role across all sectors, state leaders could seek federal funding from a broad array of programs that depend on power sector investments for their aims – such as grants from the Department of Transportation and USDA.

The following list highlights the range of power sector priorities for which federal funding still is available.

• Generation. Billions of dollars in tax credits and grant programs remain to demonstrate and deploy clean sources of electric generation.
• Transmission and distribution. The federal government still retains billions of dollars for grants to invest in transmission and distribution infrastructure to enable a clean and reliable electric grid.
• Energy efficiency. Numerous grant and tax programs exist to incentive energy consumers to make the use of electricity more efficient and hence reduce demand for its production.
• Supply chain and workforce development. Several programs remain to support investments in the supply chain needed for power sector transition and on training the workers needed to support evolving power technologies.
• Community capacity building. Multiple programs remain that enable communities impacted by power generation decisions to be active participants in decisions.
• Cross-cutting programs. Beyond the specific programs listed above, there are large programs with billions of dollars available that have mandates encompassing a variety of investment categories for the power sector.

State Roles in Federal Funding for Clean Energy Investment

To make the most of the wide range of federal funding opportunities, states can take the following actions in three overlapping phases. States can lead planning efforts to guide the overall power sector strategy, adopt or strengthen clean electricity standards or other clean energy policies, be the direct grantee of federal funding, partner in leveraging federal resources to finance projects, and motivate their private constituents to use federal resources to the maximum extent possible. Early and ongoing planning by states will enable a proactive, coordinated approach to applying for and implementing federal funds.

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Phase I – Identification

1. Establish priorities. Establish a state priority to maximize use of federal funding for the power sector. Determine subsectors of greatest significance (e.g., in terms of emission reductions, importance to state economy, growth potential) and the resources that funding would make viable within the state. The legislature, governor, budget office director, infrastructure coordinator, and/or other senior state officials could establish this priority. Funds awarded through the Climate Pollution Reduction Grant program and State Energy Planning grants provide states with resources for planning
2. Identify state principals. Designate a single state official (perhaps in the relevant agency) to coordinate the use of federal funds for this priority. Identify principals to lead efforts from relevant parts of state government (e.g., agencies, budget office, and commissions) to secure and administer funding programs.
3. Identify priority programs and milestones. State principals can prioritize funding programs to pursue and establish a timeline of milestones for priority programs. This process will help avoid missing key opportunities and deadlines, help to plan strategic interactions among funding programs, and ensure accountability. 
4. Identify stakeholders. Identify key stakeholders across sectors, including but not limited to electric utilities, large end-users, technology developers, local governments, environmental justice leaders, community-based organizations, universities, and economic development organizations.

Phase II – Collaboration

1. Coordinate state principals. Develop structures for coordination among principals related to federal power sector funding. Coordination could include monthly internal coordination meetings, education about relevant programs (e.g., using this document), determining a point person for each related funding program, and identifying areas for interagency coordination (e.g., data sharing).
2. Communicate with and motivate stakeholders. Communicate and receive feedback on the state priorities. Share information on relevant funding opportunities to eligible applicants and stakeholders, including through roundtables, information sessions, and websites. Establish regular check-ins and standing opportunities to exchange information and updates among state and non-state stakeholders.
3. Communicate with public. Share priorities online and in public sessions and forums, including public meetings, press conferences, and other speaking engagements by public officials. Build two-way communication with communities, especially among disadvantaged and frontline communities, to shape the growth of priorities.
4. Communicate internally. Share updates on grant application progress, grants awarded, formula funds awarded, and crosscutting issues at gatherings such as cabinet meetings and other interagency meetings. Share lessons learned among principals to avoid siloed agencies. This could include sharing best practices across states.

Phase III – Implementation

1. State match. States can identify and secure matching funds for federal grant applications as soon as possible to increase state competitiveness.
2. Direct federal funding. Multiple programs offer states direct federal funding. Examples include DOE’s Transmission Siting and Economic Development Grants and Home Energy Rebate program and the Department of Transportation’s RAISE grants. 
3. Financing. States have access to federal levers to help finance power sector investment. Most directly, states may partner with DOE’s Loan Program Office (LPO) by establishing a State Energy Finance Institution and thereby access the LPO’s concessionary loan rates. The GGRF has provided community-scale solar resources to states through its Solar for All program and capitalized green banks that can deploy financing in partnership with the states. Direct pay provisions of the tax code allow states to be partners in gaining financing for projects where the states have an ownership interest – a role that will only expand if the Treasury Department permits states to monetize tax credits from private entities through “tax chaining” transactions.³
4. Track updates. Maintain active trackers of relevant federal funding programs. Utilize online trackers produced by independent groups and share with stakeholders.   
5. Update priorities. States can update their priorities and needs list as funding is awarded and new priorities emerge. Incorporate feedback from stakeholders and the public to inform new priorities. 
6. Keep learning. States can learn from and emulate one another, employing best practices from around the country. They also can learn from unsuccessful competitive grant applications to improve applications in subsequent funding rounds.   
7. Communicate wins. States should publicly celebrate the benefits that federal funds bring to their residents and businesses, so the advantages of public and private investment in clean energy investments in the power sector are well understood. Success can be leveraged to expand decarbonization efforts and deepen emissions reductions. 

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Appendice

This appendix organizes federal funding programs across multiple categories representing the breadth of investments required to develop a reliable, affordable, and clean electricity system. Some of these programs have expended all or most of their appropriated resources but are noted here for awareness and to be monitored for reappropriation. Other programs are listed because they are flexible across sectors and could complement power sector investments.

Generation

Program	Scopo	Federal Agency/Grant Type	Eligible Applicants	Amount Available
Powering Affordable Clean Energy Program	To make energy clean, affordable, and reliable to the people of rural America	• USDA • Loan	Applicants that generate electricity for resale to residents in both rural and non-rural areas with at least 50% of the population served by the proposed renewable energy project living in communities with populations of 20,000 or fewer.	$1 billion (maximum loan of $100 million and minimum loan $1 million) $900,000,000 has been dispersed
Empowering Rural America Program	To fund projects to help rural Americans transition to clean, affordable, and reliable energy	• USDA • Grant • Loan	Rural electric cooperatives (existing or former USDA rural utilities service borrowers, borrowers of the former Rural Electrification Administration, rural electric cooperatives that serve predominantly rural areas, wholly or jointly owned subsidiaries of rural electric cooperatives)	$9.7 billion
Zero-Emission Nuclear Power Production Credit (45U)	To credit electricity produced at a qualified nuclear power facility	• Treasury • Production Tax Credit	Existing nuclear power plants at time of enactment that are not eligible for the 45J credit	0.3 cents per kWh BONUS: 5x the base credit if prevailing wage requirement is met for workers doing alteration or repair at the facility
The Advanced Nuclear Production Tax Credit (45J)	To credit electricity produced by a qualified nuclear power facility	• Treasury • Production Tax Credit	Nuclear power plants that use nuclear reactor designs approved by the Nuclear Regulatory Commission after 1993 and were placed into service by the end of 2020	1.8 cents per kWh
Clean Electricity Production Tax Credit (45Y)	To provide a technology-neutral tax credit for production of clean electricity	• Treasury • Production Tax Credit	Facilities generating electricity for which the greenhouse gas emissions rate is not greater than zero	0.3 cents per kW BONUS: Credit is increased by 5x for projects meeting prevailing wage and registered apprenticeship requirements. Credit is increased by 10% for projects meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by 10% if located in an energy community
Clean Electricity Investment Tax Credit (48E)	To provide a technology-neutral tax credit for investment in facilities that generate clean electricity	• Treasury • Investment • Tax Credit	Facilities that generate electricity with a greenhouse gas emissions rate that is not greater than zero and qualified energy storage technologies	6% of qualified investment BONUS: Credit is increased by 5x for facilities meeting prevailing wage and registered apprenticeship requirements. Credit is increased by up to 10% for facilities meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by 10% if located in an energy community
Long Duration Energy Storage Demonstration Initiative and Joint Program	To establish an initiative for demonstration projects focused on the development of long-duration energy storage technologies	• DOE • Grant • Cooperative Agreement	Technology Developers, Industry, State and Local Governments, Tribal Organizations, Community Based Organizations, National Laboratories, Universities, and Utilities	$150,000,000 (Notice of Funding Opportunity for Non-Lithium Long-Duration Energy Storage Pilot Projects concept papers were due on 10/16/2024.)
Solar Technologies’ Rapid Integration and Validation for energy systems	To provide funding for research, development, and demonstration projects to improve power systems	• DOE; Office of Energy Efficiency & Renewable Energy • Grant	Institutions of higher education, for-profit entities, non-profit entities, and state and local governmental entities and federally recognized Tribes	$31 million
Enhanced Geothermal Systems Pilot Demonstrations	To support pilot demonstrations of enhanced geothermal systems for power production and direct use	• DOE; Office of Energy Efficiency & Renewable Energy • Grant	Industry, National Labs, Institutes of Higher Education, Multi-institutional Collaborations, Tribes and Local Communities	$74 million
Production Tax Credit for Carbon Dioxide Sequestration	To credit carbon dioxide sequestration coupled with permitted end uses within the United States	• Treasury • Production Tax Credit	Individuals, Institutions of higher education, for- and non- profit organizations, state and local governments, and Tribes	$85 per metric ton of CO2 that is securely stored underground; $60 per metric ton of CO2 utilized or injected for enhanced oil recovery $180 per metric ton of CO2 that is securely stored underground. $130 per metric ton of CO2 utilized BONUS: 5x the base amounts if facility meets prevailing wage and apprenticeship requirements
Carbon Storage Validation and Testing	To support the transport and permanent storage of carbon dioxide captured from industrial and power generation facilities, as well as from legacy carbon dioxide emissions removed directly from the atmosphere	• DOE; Office of Fossil Energy and Carbon Management • Grant	Individuals, Institutions of higher education, for- and non- profit organizations, state and local governments, and Tribes	$2.25 billion over 5 years; $1.4 billion deployed to date
Carbon Capture Demonstration Projects Program	To accelerate the demonstration and deployment of carbon management technologies supporting efforts to create good-paying manufacturing jobs, reduce pollution to deliver healthier communities, and reinforce America’s global competitiveness in clean energy technologies	• DOE; Office of Clean Energy Demonstrations • Grant	Individuals, institutions of higher education, for- and non- profit organizations, state and local governments, and Tribes	$1.3 billion across all topic areas announced in September 2024

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Powering Affordable Clean Energy Program 

Power Sector Context	The PACE program is the largest investment in rural electrification since 1936 with the goal of making clean, affordable, and reliable energy accessible to rural America
Match Requirement?	No
Relationship with Other Programs	No restrictions enumerated
Pre-Application	Program is closed as of 10/20/2024
Next Steps	Monitor investment outcomes and for renewed funding due to returned grants or reappropriation

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Empowering Rural America Program 

Power Sector Context	The new ERA program helps rural Americans transition to clean, affordable, and reliable energy
Match Requirement?	No
Relationship with Other Programs	No restrictions enumerated
Pre-Application	Program is closed as of 10/20/2024
Next Steps	Monitor investment outcomes and for renewed funding due to returned grants or reappropriation

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45U – Zero-Emission Nuclear Power Production Credit 

Power Sector Context	Supports electricity produced by qualified preexisting nuclear power facility
Match Requirement?	No; States are direct pay eligible
Relationship with Other Programs	Facilities eligible for the 45J advanced nuclear production tax credit are not eligible for the 45U tax credit. Payments from federal, state, or local zero-emission nuclear subsidies reduce the credit amount
Pre-Application	Identify qualified nuclear electricity facilities
Next Steps	Engage to ensure qualified power providers maximize credit

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45J – Zero-Advanced Nuclear Production Tax Credit  

Power Sector Context	Enacted through the Energy Policy Act of 2005, 45J provides nuclear facilities that were put into service between 2005 and 2020 a tax credit for the first eight years of production
Match Requirement?	No
Relationship with Other Programs	Facilities eligible for the 45J advanced nuclear production tax credit are not eligible for the 45U tax credit. Payments from federal, state, or local zero-emission nuclear subsidies reduce the credit amount
Pre-Application	This tax credit should already be received by those who were eligible
Next Steps	Engage to ensure qualified power providers maximize credit

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45Y – Clean Electricity Production Tax Credit

Power Sector Context	Supports production of clean electricity. Credit replaces the production tax credit for electricity generated from renewable sources
Match Requirement?	No; States are direct pay eligible
Relationship with Other Programs	Not stackable with 48E. Can claim with other credits, such as 45Q or 45V, for different project aspects
Pre-Application	Identify qualified clean electricity providers and projects, including government entities and projects
Next Steps	Engage to identify and address barriers to deployment and ensure qualified power providers maximize credit

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48E - Credito d'imposta per gli investimenti in elettricità pulita

Power Sector Context	Supports investment in facilities that generate clean electricity. Credit replaces the investment tax credit for facilities that generate electricity from renewable sources
Match Requirement?	No; States are direct pay eligible
Relationship with Other Programs	Not stackable with 45Y. Can claim with other credits, such as 45Q or 45V, for different project aspects. Credit reduced for tax-exempt bonds with similar rules as section 45(b)(3)
Pre-Application	Identify potential clean electricity providers and projects, including government entities and projects
Next Steps	Help identify and address investment barriers and ensure qualified providers maximize credit

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Long Duration Energy Storage Demonstration Initiative and Joint Program

Power Sector Context	Establishes an initiative for demonstration projects focused on the development of long-duration energy storage technologies
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Engage industry leaders to identify specific needs for technologies
Next Steps	Monitor project outcomes and for renewed funding due to returned grants or reappropriation. Discuss with federal officials whether other programs are available for storage technologies

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Solar Technologies’ Rapid Integration and Validation for energy systems

Power Sector Context	Invests in innovative research and development to accelerate the large-scale development and deployment of solar technologies
Match Requirement?	Ranges from 20%-50% depending on project type
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Program is closed to application as of 10/25/2024
Next Steps	Monitor R&D outcomes and for renewed funding due to returned grants or reappropriation.

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Enhanced Geothermal Systems Pilot Demonstrations

Power Sector Context	Demonstrations aimed at providing reliable and flexible, emissions-free technology solutions for heating and cooling demands
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Program is closed to application as of 09/25/2024
Next Steps	Monitor project outcomes and for renewed funding due to returned grants or reappropriation.

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45Q – Production Tax Credit for Carbon Dioxide Sequestration

Power Sector Context	Incentivizes and ensures captured CO2 is securely stored in a qualified manner
Match Requirement?	No; States are direct pay eligible
Relationship with Other Programs	Cannot stack with the 45V or other tax credits for same purpose
Pre-Application	Publicize credit and encourage owners and operators to determine viability and eligibility of CCS at their facilities
Next Steps	Engage to identify and address technology deployment barriers and ensure qualified power providers maximize credit

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Validazione e test dello stoccaggio di carbonio

Power Sector Context	Supports the transport and permanent storage of carbon dioxide captured from industrial and power generation facilities
Match Requirement?	Ranges from 20% to 50% depending on area of interest
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Examine characterization of new regional storage facilities this program is developing for CO2. Encourage owners and operators to determine viability of CCS at their facilities
Next Steps	Monitor for the full Notice of Funding Opportunity to be released by Office of Fossil Energy and Carbon Management. Meet with CCS developers to share information about relevant federal funding programs

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Programma di progetti dimostrativi di cattura del carbonio

Power Sector Context	This program seeks to accelerate demonstration and deployment of carbon management technologies. Recent Notice of Intent targeted coal-fired power plants and industrial applications
Match Requirement?	50% cost share
Relationship with Other Programs	Able to combine with grants and 45Q credits
Pre-Application	Identify in-state facilities that can pilot and demonstrate carbon capture technology and encourage them to apply
Next Steps	Monitor for the full Notice of Funding Opportunity to be released by the Office of Clean Energy Demonstrations (Notice of Intent was released September 2024)

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Transmission and Distribution

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Energy Improvement in Rural or Remote Areas

Power Sector Context	Improves the resilience, reliability, and affordability of energy systems in communities with 10,000 or fewer people
Match Requirement?	5%-50% non-federal funding depending on project type
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Identify communities that could benefit from the program and encourage program application
Next Steps	Monitor for the full Notice of Funding Opportunity to be released by the Office of Clean Energy Demonstrations (Notice of Intent was released August 2024)

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TSED – Transmission Siting and Economic Development Grants Program

Power Sector Context	Advances critical transmission projects through accelerating siting and permitting while supporting economic development efforts in communities impacted by transmission construction and operation
Match Requirement?	Federal cost share should not exceed 50%
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Identify possible projects that may qualify for the program
Next Steps	Monitor for an announcement from Grid Deployment Office

GRIP Program – Grid Resilience Utility and Industry Grants

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Power Sector Context	Supports the modernization of the electric grid
Match Requirement?	50% cost-share requirement
Relationship with Other Programs	Can claim with tax credits, such as 48E or 48Y. Aligned with industrial electrification
Pre-Application	Review successful concepts from past grant cycles. Determine potential statewide concepts that benefit the power sector
Next Steps	Engage interested utilities and others to discuss grant concepts, demonstrate potential, and determine interest

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GRIP Program – Grid Innovation Program

Power Sector Context	Help innovate transmission, storage and distribution of electricity. Projects will accelerate interconnection of clean energy generation and utilization of distribution
Match Requirement?	50% cost-share requirement
Relationship with Other Programs	Can claim with tax credits, such as 48E or 48Y. Aligned with industrial electrification
Pre-Application	Review successful concepts from past grant cycles. Determine potential statewide concepts that benefit the power sector
Next Steps	Engage interested utilities and others to discuss grant concepts, demonstrate potential, and determine interest

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GRIP Program – Smart Grid Grants

Power Sector Context	Increases the flexibility, efficiency, and reliability of the electric power system, specifically facilitating the integration of electrified buildings.
Match Requirement?	50% cost-share requirement
Relationship with Other Programs	Supportive of industrial electrification efforts
Pre-Application	Review successful concepts from past grant cycles. Determine potential concepts that benefit integration of electrified buildings
Next Steps	Discuss with power sector leaders within your state about priority projects that might qualify for Smart Grid Grants

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Energy Efficiency

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Energy Efficiency Home Improvement Credit

Power Sector Context	Provides consumer tax credit for energy-efficiency improvements in residential homes
Match Requirement?	No
Relationship with Other Programs	Staking allowed
Pre-Application	Communicate opportunities to residents and community organizations
Next Steps	Provide assistance with tax credit application

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Home Energy Performance-Based, Whole-House Rebates

Power Sector Context	Provides grants to state energy offices to develop a whole-house energy saving retrofit program
Match Requirement?	Cost share is dependent on income level 50% if AMI exceeds 80% AMI 20% if AMI is below 80% AMI
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Many state applications underway; states should evaluate if implementing a whole-house energy saving retrofit program would benefit their residents
Next Steps	Engage DOE to develop strong application

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New Energy Efficient Homes Credit

Power Sector Context	Provides tax credit for construction of new energy efficient homes
Match Requirement?	No
Relationship with Other Programs	Taxpayers claiming the Low-Income Housing Tax Credit do not have to reduce basis for 45L4 credits claimed
Pre-Application	Identify homebuilders open to developing energy efficient homes and communicate opportunity
Next Steps	Engage homebuilders to identify and address barriers to taking advantage of the program

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Energy Efficient Commercial Buildings Deduction

Power Sector Context	Creates a permanent deduction for energy efficient improvements to commercial buildings
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Identify commercial buildings in need of energy efficient updates and inform owners or lessees of opportunity
Next Steps	Engage owners or lessees to identify and address barriers to taking advantage of the program

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Green and Resilient Retrofit Program – Grants and Loans

Power Sector Context	Provides funding for direct loans and grants for projects aimed at improving energy or water efficiency, enhancing indoor air quality or sustainability, and implementing the use of zero-emission electricity generation for HUD-assisted multifamily properties
Match Requirement?	TBD
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Identify potential HUD-assisted multifamily properties and inform their stakeholders of opportunity
Next Steps	Monitor for final funding announcement from HUD and engage owners or lessees to identify and address barriers to taking advantage of the program

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Assistance for Latest and Zero Building Energy Code Adoption

Power Sector Context	Provides grants to states or local government to adopt updated building energy codes, including the zero energy code
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Full applications for the program were due 10/31/2024
Next Steps	Monitor for renewed funding due to returned grants or reappropriation

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48C- Advanced Energy Project Credit

Power Sector Context	Provides manufacturers and others credit for investments in advanced energy projects needed for industries to transition from fossil fuel-based processes to electrically powered systems
Match Requirement?	No; States are direct pay eligible
Relationship with Other Programs	Cannot stack with 45X, 45Q, or 45V. Can pair with LPO Advanced Technology Vehicles Manufacturing loans, domestic manufacturing conversion grants, and other programs
Pre-Application	Publicize credit with manufacturers and others. Identify relevant energy communities, where 40% of 48C investments must occur
Next Steps	Share information on qualifying areas identified in pre-application meetings with leaders outlining sites and federal tax benefits

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Supply Chain and Workforce Development

Program	Scopo	Federal Agency/Grant Type	Eligible Applicants	Amount Available
Solar Energy Supply Chain Incubator	To provide funding for research, development, and demonstration projects that de-risk solar hardware, manufacturing processes, and software products across a wide range of solar technology areas	• DOE; Office of Energy Efficiency & Renewable Energy • Grant	Institutions of higher education, for-profit entities, non-profit entities, and state and local government entities and Tribes	$50.5 million
State-based home efficiency contractor training grants	To provide financial assistance to states to develop and implement a program to provide training and education to contractors involved in the installation of home energy efficiency and electrification improvements	• DOE; Office of State and Community Energy Programs • Grant	States	$200 million
Industrial Training and Assessment Centers	To expand the Industrial Assessment Center program by creating new programs at community colleges, trade schools, and unions, and by establishing five regional centers of excellence	• DOE • Grant	Institutions of higher education, for-profit entities, non-profit entities, and state and local government entities and Tribes	$150 million (Available until expended)

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Solar Energy Supply Chain Incubator

Power Sector Context	Provides funding to research, develop, and demonstrate projects that de-risk solar hardware, manufacturing processes, and software products across a wide range of solar technology areas
Match Requirement?	Range between 20%-50% based on project type
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Applications are closed as of 10/07/2024
Next Steps	Monitor funded project outcomes and for renewed funding. Evaluate whether similar state-funded programs would be beneficial

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State-based home efficiency contractor training grants

Power Sector Context	Provides grants to states to develop and implement programs that provide training and education to contractors involved in the installation of home energy efficiency and electrification improvements
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Engage community colleges and local businesses to assess whether this would be a beneficial program
Next Steps	Monitor for next round of funding made available through the Office of State and Community Energy Programs

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Industrial Training and Assessment Centers

Power Sector Context	Advances a clean energy and manufacturing workforce by funding workforce training programs
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Meet with educational institutions, trade schools, and unions to discuss their interest in creating a program that fits within this grant opportunity
Next Steps	States can connect and support educational institutions and manufacturers as they develop applications

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Community Capacity Building

Program	Scopo	Federal Agency/Grant Type	Eligible Applicants	Amount Available
EPA Community Change Grants	To reduce pollution, increase community climate resilience and build community capacity to address environmental and climate justice challenges	• EPA • Grant	A partnership between two community-based non-profit organizations or a partnership between a CBO and either (1) a federally-recognized tribe, (2) a local government, or (3) a institution of higher education	$2 Billion (rolling applications)
Funding to Address Air Pollution: Air Quality Sensors	To deploy and operate air quality sensors in low-income and disadvantaged communities	• EPA • Grant	State, local, Tribal, and territorial air pollution control agencies	$3 million (Available until expended)
Funding to Address Air Pollution: Multipollutant Monitoring	To expand the national ambient air quality monitoring network	• EPA • Grant	State, local, Tribal, and territorial air pollution control agencies	$50 million (Available until expended)
Funding to Address Air Pollution: Fenceline Air Monitoring	To deploy and support fence line monitoring and other air toxic and community monitoring	• EPA • Grant	State, local, Tribal, and territorial air pollution control agencies	$117.5 million ($53 million expended)

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EPA Community Change Grants

Power Sector Context	This program was created to provide funding for community-driven initiatives to help with climate change, legacy pollution, and historical disinvestments. It addresses community impacts from environmental hazards and can serve to enhance community relationships, compliance with environmental regulations, and build trust between industry and communities through project development.
Match Requirement?	No
Relationship with Other Programs	Able to stack with incentives and other programs. Many grant programs require community benefit plans in their applications, and community change grants could help buttress community involvement in plan development
Pre-Application	Meet with community groups to identify places where increased community capacity would help address community concerns and allow communities to benefit from clean electricity investments
Next Steps	States connect stakeholders and assist with application development

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Funding to Address Air Pollution: Air Quality Sensors

Power Sector Context	Monitoring is significant for power sector emissions, as a criteria and hazardous air pollutants can be emitted alongside greenhouse gases. As facilities decarbonize, monitoring can confirm progress
Match Requirement?	No
Relationship with Other Programs	See other air pollution monitoring funds
Pre-Application	Because funds will be distributed to EPA regions and then awarded to states, overlay EJ Screen and the Climate and Economic Justice Screening Tool (CEJST) to identify state hotspot needs for monitoring
Next Steps	State air pollution agency can collaborate with EPA Region staff to make the case for and drawdown funds for the state

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Funding to Address Air Pollution: Multipollutant Monitoring

Power Sector Context	Monitoring is significant for power sector emissions, as criteria and hazardous air pollutants can be emitted alongside greenhouse gases. As facilities decarbonizes, monitoring can confirm progress
Match Requirement?	No
Relationship with Other Programs	See other air pollution monitoring funds
Pre-Application	Review EPA factors for funding distribution. This program seeks to distribute these non-competitive grants based on priorities from IRA monitoring provisions, needs assessment, and the number of monitors a state agency operates
Next Steps	State air pollution control agency can collaborate with EPA Region staff to identify greatest needs in-state that this program could address

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Funding to Address Air Pollution: Fenceline Air Monitoring

Power Sector Context	Funds government-sponsored monitoring, which is significant for power sector as criteria and hazardous air pollutants can be emitted alongside greenhouse gases. As facilities seeks to decarbonize, monitoring can confirm progress. This program seeks to distribute these non-competitive grants based on priorities from IRA monitoring provisions, needs assessment, and the number of monitors a state agency operates
Match Requirement?	No
Relationship with Other Programs	See other air pollution monitoring funds
Pre-Application	Review EPA factors for funding distribution and current grant timelines
Next Steps	State air pollution agency can collaborate with communities adjacent to power plants to identify needs that this program could address

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Cross-Cutting Programs

Program	Scopo	Federal Agency/Grant Type	Eligible Applicants	Amount Available
Funding for Department of Energy Loan Programs Office (Title 17)	To support the cost of loans for innovative clean energy technologies	• DOE; Loan Programs Office • Loan	States, Counties, Cities/Townships, Special Districts, Tribal Governments, Independent School Districts, Public Higher-Ed Institutions, Private Higher-Ed Institutions, Public Housing Authorities, Indian Housing Authorities, Nonprofits, Small Businesses, and Businesses	Loan; dependent on project size
State Energy Financing Institution Program of Loan Program Office	To augment state-administered clean energy programs, providing additional financial support to projects that align federal energy priorities with those of states	• DOE; Loan Programs Office • Loan	States, Counties, Cities/Townships, Special Districts, Tribal Governments, Independent School Districts, Public Higher-Ed Institutions, Private Higher-Ed Institutions, Public Housing Authorities, Indian Housing Authorities, Nonprofits, Small Businesses, and Businesses	Loan; dependent on project size
Carbon Capture Large-Scale Pilot Programs	To establish a carbon capture technology program for the development of transformational technologies that will significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use, including in manufacturing and industrial facilities	• DOE; Energy Programs • Grant	Technology Developers, Industry, Utilities, Universities, National Laboratories, Engineering and Construction Firms, State and Local Governments, Tribes, environmental groups, and community based organizations	$937 million
Greenhouse Gas Reduction Fund	To provide competitive grants to mobilize financing and leverage private capital for clean energy and climate projects that reduce greenhouse gas emissions	• EPA; Office of the Administrator • Grant	(1) States, municipalities, Tribal governments, and “eligible recipients” for the $7 Billion for solar power deployment in low-income and disadvantaged communities. (2) nonprofit ad nondepository financial institutions designed for green investments are “eligible recipients” for the $19.97 Billion for capitalization of such institutions.	$27 billion; fully obligated to recipients as of September 2024
Climate Pollution Reduction Grants	To provide grants to tribes, states, air pollution control, and local governments to develop and implement plans for reducing greenhouse gas emissions	• EPA; Office of Air and Radiation • Grant	For planning grants: states, states, territories, DC, air pollution control agencies, municipalities, tribes or groups of such eligible entities. For implementation grants: those states, territories, DC, air pollution control agencies, municipalities; tribes or groups of such eligible entities that are covered by a plan developed with funding from a planning grant awarded under this section	$250 million in planning grants; $4.6 billion in implementation grants
Rebuilding American Infrastructure with Sustainability and Equity Grant Program	To invest in road, rail, transit and port projects that promise to achieve national objectives. Energy infrastructure to support transportation efforts is within scope	• DOT; Office of Infrastructure Finance and Innovation • Grant	State governments, local governments, federally recognized tribes and affiliated groups, transportation providers or operators, and US territories	$1.5 billion annually for FY 2022-2026

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Funding for Department of Energy Loan Programs Office (17)

Power Sector Context	Finances clean energy and energy efficiency projects by providing financial backing through loan guarantees, covering up to 80% of a project’s total cost, significantly lowering the risk for lenders and investors to support innovative projects
Match Requirement?	The loan cannot exceed 80% of the project’s total costs
Relationship with Other Programs	Can pair with 48C, 45X, and other tax credits. The DOE cannot issue loan guarantees to projects that are expected to benefit from certain other forms of federal support
Pre-Application	Identify potential projects and communicate opportunity to stakeholders
Next Steps	Engage power sector leaders to ascertain if they would be open to investing in clean energy projects with LPO financing

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State Energy Financing Institutions

Power Sector Context	SEFI’s are state-created entities designed to reduce barriers to deployment of clean energy projects by provide financing support or credit enhancement to projects
Match Requirement?	The loan cannot exceed 80% of the project’s total costs
Relationship with Other Programs	Can pair with 48C, 45X, and other tax credits. The DOE cannot issue loan guarantees to projects that are expected to benefit from certain other forms of federal support
Pre-Application	Evaluate what energy financing programs in their jurisdiction could qualify as a SEFI (Sixteen SEFI’s across 14 states have been established as of October 2024)
Next Steps	If not established yet, engage LPO about creating a SEFI. Identify funding priorities for clean power in the state and design SEFI programs to support such projects

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Programma pilota su larga scala per la cattura del carbonio

Power Sector Context	Aims to prove CCS at pilot-to-commercial scale in electricity generation and industrial operations
Match Requirement?	Has varied in prior funding opportunity announcements
Relationship with Other Programs	Able to combine with grants and 45Q credit
Pre-Application	Identify potential technology developers or projects and alert them of the program
Next Steps	Monitor for the full Notice of Funding Opportunity to be released by the Office of Clean Energy Demonstrations (Notice of Intent was released September 2024)

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Greenhouse Gas Reduction Fund

Power Sector Context	Invests $27 billion to catalyze the creation of a national climate financial network. $20 billion was capitalized to a number of nonprofit financial institutions now offering financing for greenhouse gas reduction projects; $7 billion was allocated largely to state and municipal recipients for residential solar grants under the Solar4All program
Match Requirement?	No
Relationship with Other Programs	GGRF financing could be combined with grants and tax credits
Pre-Application	All funding is deployed to nonprofit organizations; states could partner with nonprofit grantees or help administer the Solar4All program.
Next Steps	Reach out to GGRF recipients and determine interest and alignment with state goals for power sector; identify opportunities for partnership

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Climate Pollution Reduction Grants

Power Sector Context	States developed initial (priority) pollution reduction plans and submitted implementation grant applications to reduce in-state greenhouse gas emissions. Applicants were awarded implementation grants. States must submit their Comprehensive Climate Action Plans (CCAPs) in December 2025
Match Requirement?	No
Relationship with Other Programs	Developing climate action plans helps states identify the most impactful emissions reductions measures, which can help states prioritize which grant opportunities to pursue.
Pre-Application	Funding has been distributed to states
Next Steps	States can use the upcoming CCAP planning process to solidify power sector actions and evaluate non-CPRG funding to implement key reduction measures.

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Rebuilding American Infrastructure with Sustainability and Equity Grant Program

Power Sector Context	RAISE grants are intended to be used to plan or construct surface transportation infrastructure projects that will improve safety, environmental sustainability, quality of life, mobility and community connectivity, economic competitiveness and opportunity. Through the increased use of electric vehicles, investments in a resilient electric system to support charging infrastructure should be within scope for the program
Match Requirement?	Federal share of the costs shall not exceed 80 percent unless the project is located in a rural area, a historically disadvantaged community, or an area of persistent poverty
Relationship with Other Programs	Able to stack with incentives and other programs
Pre-Application	Identify potential projects that could qualify for funding from the RAISE program
Next Steps	Monitor for a funding opportunity notification from the Department of Transportation; deadline for application is January 13, 2025

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