Educational 7 October 2024
It’s been nearly three years since the Infrastructure Investment and Jobs Act (IIJA) was signed into law, but the impacts are just beginning to be felt as money starts to flow and projects take shape. From Oregon to Indiana to Maine, infrastructure is being built and improved—including solar lighting.
One of the largest opportunities for states, cities, and Tribes to fund solar lighting projects is the Energy Efficiency and Conservation Block Grant Program (EECBG). Originally enacted and funded through the American Recovery and Reinvestment Act of 2009, the renewed EECBG commits $550 million to help eligible entities upgrade infrastructure, save energy, and reduce emissions.
One small but significant detail to note is that the EECBG can only be used for retrofit or replacement projects—not for new construction or non-replacement equipment. If you’re looking to finance a new solar lighting installation, please see our articles on the Investment Tax Credit (ITC) and the Safe Streets and Roads for All (SS4A) Grant.
It’s right there in the name: The EECBG is a block grant. That means it’s a specific type of federal financial assistance for a broadly defined function (in this case, helping cities, states, and Tribes fund projects and strategies that reduce energy use and emissions).
The EECBG is also predominantly* a formula grant, meaning funding is allocated to states, counties, cities, and Tribes based on formulas set by Congress. This differs from discretionary grants (like SS4A), where funding is awarded based on evaluation criteria and department and program priorities.
*$8.8 million (2%) of the EECBG was set aside for competitive grants to local governments not eligible for the formula grant. These have already been awarded.
The EECBG will provide $550 million to energy efficiency and conservation projects nationwide. Here’s a breakdown of how funds will be allocated:
The exact amounts earmarked for each eligible recipient—all 2,708 of them—have already been determined and are available on the DOE’s website. The minimum allocation is $75,000, and major cities like Miami, Houston, and Los Angeles are allocated upwards of $2 million.
Cities, towns, and villages with a population of at least 35,000, and, at minimum, the 10 largest cities in each state, are eligible to apply for and receive grants directly. Those with populations of less than 35,000 or those that aren’t one of the ten most populous cities can apply for EECBG funds through their state.
The EECBG Program Guidance outlines 14 eligible use areas or ‘categories’. These include everything from building audits to energy distribution technologies to replacing traffic signals and street lighting (category 12!).
As noted, the EECGB can only be used for retrofit or replacement projects, not for new solar lighting installations (i.e. adding lights where previously there were none). The guidance also specifies that lamps must be LED and that solar panels may be used “so long as the panels are part of a replacement effort that installs LEDs.”
Vouchers are billed as a “streamlined application opportunity” for formula-eligible local governments and Tribes. They involve a shorter application and reduced reporting and are aimed at entities receiving grants of less than $250,000 or who have limited resources and experience with federal grants.
Vouchers can be used to purchase and install equipment and access technical assistance (applicants can apply for both, separately). Equipment rebate applications can be submitted through the DOE’s online portal and are reviewed within 30-60 days. Approved products can then be purchased and installed, with costs reimbursed up to the amount of the jurisdiction’s EECBG formula award.
The deadline to apply for the EECBG has been extended to October 31, 2024 for local governments and May 31, 2025 for Tribes. If you are applying for a voucher, you can submit your application through the DOE’s online voucher portal. If you are applying for a traditional grant, visit the Formula Grant Application Hub. Awards are announced on a rolling basis.
Whether you’re an engineer, architect, specifier, or community leader, now is the time to bring in new funding for solar lighting upgrades. The EECBG grant offers the opportunity to transition infrastructure to renewable technology at a drastically reduced cost. We strongly encourage you to apply.
