Infrastructure Investment and Jobs Act Funding for Energy
“$62 billion in clean energy related federal funds to be administered by U.S. Department of
Energy”~Signed into law on November 15, 2021
The Energy Programs Office (EPO), Pennsylvania’s State Energy Office, expects to receive approximately $67 million in Infrastructure Investment and Jobs Act (IIJA) formula funds from the U.S. Department of Energy. Formula funding is predetermined and noncompetitive, but must be applied for.
These funds can be used for existing or new decarbonization or resilience programs managed by EPO, block grants for local government or nonprofit energy efficiency programs, and energy efficiency revolving loan programs.
Objectives for use of IIJA funds in Pennsylvania:
- Invest in environmental justice communities to reduce energy burden.
- Expand access to energy efficiency solutions and measures for families, communities, and businesses.
- Increase the generation of reliable, clean, and affordable power.
- Deploy clean and resilient energy infrastructure to combat the effects of climate change.
- Develop a clean energy workforce and manufacturing capabilities.
The Energy Programs Office will apply for six types of IIJA funding from the U.S. Department of Energy. The first four are predetermined formula funds. The last two are competitive programs, with funding amount determined by application.
The Energy Programs Office is expected to receive $8 million per year for 5 years to help in improving the all-hazards resilience of the electric grid and to prevent outages through: hardening of assets, real time control and coordination of system assets, and provision of tools for support modeling and analysis efforts.
Virtual Public Meeting: Making Pennsylvania's Electric Grid Stronger August 31, 2022
Presentation (PDF) |
Leaders from the DEP Energy Programs Office, Pennsylvania Emergency Management Agency, and Pennsylvania Public Utilities Commission discussed climate change related risks to communities and hazards that threaten the electric grid. They explained the types of projects and grantees that will be eligible for funding and presented a draft Year 1 plan supporting vulnerable communities in rural and urban areas statewide. Over 85 Pennsylvanians joined the discussion to share their views.
Background: U.S Dept. of Energy program and funding requirements for states (PDF)
The Energy Programs Office is expected to receive $14 million to help implement programs that include policy, planning, and education initiatives to address energy efficiency, renewable energy, energy security and resiliency planning to help the industry, buildings, transportation, electric power sectors in disadvantaged communities.
The Energy Programs Office is expected to receive $4.7 million to support small local governments and nonprofits programs with grants/rebates/financing for energy efficiency, renewable energy, and zero-emission transportation.
The Energy Programs Office is expected to receive $3.7 million in new funding to capitalize or support a revolving loan fund for energy efficiency loans and audits.
The Energy Programs Office can apply for a maximum of $2 million to provide energy auditor training assistance.
$225 million will be available nationally over the next five years to be used for energy code workforce training, codes updates, implementation and compliance. EPO can apply in partnership with other agencies and non-government organizations to support energy code workforce development.
Additional IIJA Funding Available to Pennsylvania from the U.S. Dept. of Energy
These funding programs are not administered by the DEP Energy Programs Office but critical to the success of achieving a clean energy economy in Pennsylvania:
National Electric Vehicle Infrastructure (NEVI) Formula Program - The NEVI Formula Program will provide approximately $171 million in dedicated funding to Pennsylvania to strategically deploy EV charging infrastructure and establish an interconnected network to facilitate data collection, access, and reliability. These funds will be administered by PennDOT. Grants will be provided to install alternative fuel infrastructure along Federal Highway Administration designated Alternative Fuel Corridors. When the corridors are complete, NEVI funds will then be dedicated to the deployment of publicly accessible alternative fuel charging/fueling projects outside of Alternative Fuel Corridors, with priority to rural, low and middle-income, and underserved communities, and multi-unit dwellings.
Regional Clean Hydrogen Hubs - Two billion will be distributed by DOE to regional projects that support the development of at least 4 regional clean hydrogen hubs. Projects must demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen through regional clean hydrogen hubs, which are networks of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity.
Preventing Outages and Enhancing the Resilience of the Electric Grid – $2.5 billion available competitively nationwide, in addition to the Formula Grant to States, to help in improving the all-hazards resilience of the electric grid and to prevent outages through: hardening of assets, real time control and coordination of system assets, and provision of tools for support modeling and analysis efforts.
Building a Better Grid, Energy Improvement in Rural and Remote Areas - $1 billion available nationwide for cooperative agreements between Industry Partners, Utilities, National Laboratories, Universities, State and Local Governments, Community Based Organizations, Tribal, and Environmental Groups. Funding for energy improvements for rural areas. Will create common analytical frameworks, tools, metrics, and data to assess the resilience, reliability, safety, and security of U.S. energy infrastructure.
Building a Better Grid, Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency - $5 billion available, program focuses on demonstrating new approaches to enhancing regional grid resilience, implemented through States by public and rural electric cooperatives. Program for states, tribes, PUCs and local governments for transmission, storage, and distribution hardening and regional grid resilience. Requires match.
Grants for energy efficiency improvements and renewable energy improvements at public school facilities - Five hundred million in grants to be awarded by DOE for energy efficiency, renewable energy, and alternative fueled vehicle upgrades and improvements at public schools.
Replacement of Existing School Buses with Clean and Zero Emission School Buses - Five billion in grants to schools for zero emission buses (50% of funds) and clean or zero emissions buses (other 50% of funds).
Weatherization Assistance Program - The IIJA-funded increase to the Weatherization Program will provide an additional $186 million to help increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential energy expenditures, and improve their health and safety. Energy efficient measures could include the installation of weatherization materials such as attic insulation, caulking, weather-stripping, furnace efficiency modifications, certain mechanical measures to heating and cooling systems, and replacement furnaces, boilers, and air-conditioners.