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Breaking Down $62B in DOE Funding for Better Communities

July 18, 2022


The recently passed Infrastructure Investment and Jobs Act (IIJA) (also referred to as the Bipartisan Infrastructure Law (BIL)) – provides $550 billion to State and Local Governments to improve infrastructure throughout the nation. $62 billion of this funding has been allocated to the Department of Energy (DOE) to fund clean energy innovation, provide affordable and reliable energy, improve grid resiliency, fight climate change and create good-paying jobs in related industries. Through these programs, State and Local governments can:

  • Improve local infrastructure
  • Create long-lasting community savings
  • Accelerate sustainability goals
  • Improve community resiliency
  • Modernize energy transmission/distribution facilities
  • Create good-paying jobs

While navigating these funding opportunities may feel overwhelming, this guide is meant to be a resource to help navigate the landscape of DOE funding opportunities available today (and through 2026). Have questions on how to capitalize on these programs?  Contact your local Trane team, we’ll help you find building solutions to meet your unique goals.  

Funding Resilient & Sustainable Communities through IIJA
State and local governments will receive these funds through the summarized programs below. Some of these programs are actively funding local government programs while others will become available in late 2022 and early 2023.

  • Energy Efficiency and Conservation Block Grant (EECBG) Program - $550M to assist States, local governments in implementing strategies to decrease fossil fuel emissions, reduce total energy use, and improve energy efficiency in the building.
  • State Energy Program - $500M allocated to State Energy Offices to fund energy conservation measures, renewable energy measures, and programs to increase deployment of clean energy technologies and electrification in buildings.
  • Energy Efficiency Revolving Loan Fund Capitalization Grant Program - $250M grants to States to establish a revolving loan fund under which the State shall provide loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings.
  • Energy Improvement in Rural or Remote Areas – $1B to help communities of less than 10k inhabitants fund cost-effective energy generation, transmission, or distribution systems; reduce greenhouse gas emissions; provide or modernize electric generation facilities; and develop microgrids.
  • Grants for Energy Efficiency and Renewable Energy Improvements at Public School Facilities - $500M To provide competitive grants to make indoor air quality (IAQ), energy efficiency (HVAC, lighting, ventilation and building envelope) upgrades, and renewable energy improvements at public schools.
  • Energy Auditor Training Grant Program - $40M allocated to State Energy Offices to fund grant programs to train individuals to conduct energy audits of commercial buildings with the intent to reduce building energy use, costs and air pollution (Notice of funding opportunities now open)
  • Cost-effective Codes Implementation for Efficiency and Resilience –$225M to implement and update energy codes; modernize existing commercial buildings; and enable State or regional partnerships to provide training and materials to building code officials, architects, and design and construction professionals relating to meeting updated building energy codes in a cost-effective manner.
  • Building, Training, And Assessment Centers – $10M in grants to support higher education institutions in establishing training and assessment centers to educate building technicians and engineers on implementing modern building technologies (Notice of funding opportunity announcement due in Q4 2022)

IIJA offers government leaders an opportunity to fund projects that will make a lasting impact on the health and wellness of community spaces while reducing carbon emissions and enhance their local economies.

The DOE’s Office of Energy Efficiency & Renewable Energy has created the State & Local Solution Center technical assistance guide to help State, Local and Rural governments access, plan for and report on the use of these investment programs.

Check out our simplified IIJA & SLFRF for State & Local Governments Resource Guide for easy-to-navigate program overviews, grant applications and planning tools from the White House and federal agencies.

Maximize Return on Community Investments
The challenges facing our communities are significant. Leverage existing buildings, infrastructure and this once-in-an-era funding opportunity to modernize and create a lasting impact on your community’s prosperity.

Wondering where to start and how to capitalize on this community modernization opportunity? We’re here to help you every step of the way. Get in touch with your local Trane team today.

Learn more in the Department of Energy’s 2022 State & Local Governments Energy Efficiency Resource Guide

Dept. of Energy’s 2022 Energy Efficiency & Renewables Resource Guide

Learn more about federal funding, programs, and grant application assistance available for state, local government and k-12 schools.