Biden administration approves $550M for community-based clean energy

The Biden administration announced on Tuesday that it will be allocating $550 million to support the deployment of community-based clean energy initiatives.

Through the Energy Efficiency and Conservation Block (EECBG) Program, the funds will help state, local and tribal governments implement plans aimed at reducing fossil fuel emissions and overall energy use, according to a notice of intent first shared with The Hill.

The total sum, made available through the recent bipartisan infrastructure law, is expected to serve more than 250 million Americans while helping achieve a net-zero economy by 2050, the Department of Energy stated.

Applications to the EECBG Program will be available to all 50 states, five U.S. territories, the District of Columbia, 774 tribes and 1,878 local governments, per the notice of intent.

“This direct injection of DOE funds is essential for communities working to deliver an equitable, resilient, and clean energy future,” Secretary of Energy Jennifer Granholm said in a statement.

Of the total $550 million — authorized by Congress to be available until expended — the Energy Department said it intends to distribute $440 million in formula funding and competitive grants to the eligible parties.

The remaining $110 million will go toward making the EECBG Program effective and efficient and to provide technical assistance to eligible entities.

Among the eligible uses of the funds are a variety of capacity-building, planning and infrastructure projects aimed at cutting carbon emissions and energy use and improving energy efficiency, according to the Energy Department.

For example, communities could harness the funding to build out electric vehicle infrastructure or deploy community solar projects to serve areas that otherwise do not have access to clean energy, the agency explained.

Some other possibilities include the implementation of building energy audits and the development of conservation programs used in transportation, such as traffic light synchronization, bike lane construction or the opening of satellite work centers, per the notice of intent.

The Energy Department will be allocating the funding as prescribed by the 2007 Energy Independence and Security Act, with 28 percent going to states, 2 percent to tribes and 34 percent to each of two local government tiers.

This means that $299.2 million in formula funding will be going to local governments, $123.2 million to states and $8.8 million to eligible tribes, according to the notice of intent.

The Energy Department is allocating another $8.8 million for competitive grants to local governments — including tribes — that are not eligible to receive direct formula grants.

This is the second time that EECBG received funding, with the program first receiving $3.2 billion in appropriations through the American Recovery and Reinvestment Act of 2009.

Applications for the EECBG Program will open in January. The program complies with President Biden’s Justice40 initiative — which directs 40 percent of the overall benefits of clean energy investments to underserved populations, according to the Energy Department.

“State, local, and Tribal communities nationwide will be able to leverage this funding to drive greater energy efficiency and conservation practices,” Granholm said.

Such improvements, she added, will help “lower utility bills and create healthier environments for American families.”