U.S. Department of Energy - Energy Efficiency and Renewable Energy
Advanced Manufacturing Office – Industrial Distributed Energy
DOE to Award $3.2 Billion in Energy Efficiency Block Grants
March 26, 2009
DOE announced on March 26 that it plans to invest $3.2 billion in energy efficiency and conservation projects in U.S. cities, counties, states, territories, and tribal lands. The Energy Efficiency and Conservation Block Grant program, funded by the American Recovery and Reinvestment Act, will provide formula grants for projects that improve energy efficiency and reduce fossil fuel emissions. Funding is based on a formula that accounts for population and energy use, and to ensure accountability, DOE will provide guidance to grant recipients and require them to report on the number of jobs created or retained, energy saved, renewable energy capacity installed, greenhouse gas emissions reduced, and funds leveraged.
The funding will support energy audits and energy efficiency retrofits in residential and commercial buildings, the development and implementation of advanced building codes and inspections, and the creation of financial incentive programs for energy efficiency improvements. The grant funds could also go towards transportation programs that conserve energy, projects to reduce and capture methane emissions from landfills, renewable energy installations on government buildings, energy-efficient traffic signals and street lights, combined heat and power systems, district heating and cooling systems, and other projects.
Cities and counties will receive nearly $1.9 billion under the block grant program, while states and territories will receive nearly $770 million, and more than $54 million will flow directly to tribal governments. States will receive and administer funds for those counties and cities that are not large enough to qualify for direct DOE funding. In addition, up to $456 million will be made available for local energy efficiency projects under a separate competitive solicitation to be released at a later date. See the DOE press release and the Web site for the Energy Efficiency and Conservation Block Grant Program.
DOE also announced specific funding amounts for each of the states. These figures were updated on April 10 based on new figures included in a DOE press release.