The CEJA Clean Energy Contractor Incubator Program helps equity-eligible small businesses, often contractors with backgrounds in construction, electrical work, roofing, HVAC, and other trades, gain the tools and support they need to enter and succeed in Illinois’ clean energy economy. Participants receive: Technical assistance to prepare for clean energy projects. Business support including accounting systems, bonding, and insurance guidance. One-on-one mentorship to become “project ready.” Connections to larger contractors and clean energy opportunities statewide. The program’s goal is to reduce barriers so that small, disadvantaged, and underrepresented businesses can compete, grow, and thrive in the clean energy sector.

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20 ILCS 730/5-45 (Clean Energy Contractor Incubator Program, Climate and Equitable Jobs Act)

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The Clean Energy Contractor Incubator Program is designed to expand both the number and capacity of equity-eligible clean energy contractors across Illinois while ensuring that individuals from communities facing barriers have meaningful access to opportunities. The program provides: Targeted business support services such as bonding, insurance, permitting, capital access, and back-office operations. Training, mentorship, and networking opportunities to prepare contractors for work on clean energy projects. Connections to Navigators, Workforce Hubs, unions, developers, and other CEJA programs to strengthen regional ecosystems and foster long-term growth. Program success will be measured through quarterly reporting on business capacity, contracts secured, jobs created or retained, industry certifications, and other indicators of growth. By combining comprehensive support services with intentional partnerships, the Incubator Program helps ensure that diverse contractors are positioned to compete and thrive in Illinois’ clean energy economy.

Yes

1. Participant Eligibility and Recruitment Must follow the statutory requirements in 20 ILCS 730/5-45(c). At least one-third of placements must be reserved for owners of clean energy contractor businesses or nonprofits located in both R3 Areas and Environmental Justice Communities. At least two-thirds of placements must be reserved for those in equity investment-eligible communities. Preferences must be given to individuals with barriers (low educational attainment, prior justice involvement, language barriers, foster care experience). Remaining slots prioritized for displaced energy workers and other barrier populations. Incubators must coordinate with Energy Transition Navigators for outreach and recruitment. 2. Required Program Elements and Services Incubators are contractually obligated to deliver: Access to capital: Partner with the Equitable Energy Future Grant Program and other entities (CDFIs, SBA, MBDA) to provide seed and pre-development funding. Business & financial services: Support for bonding, back-office functions, permits, insurance, training, certifications, planning, and low-interest loans. Training, mentoring, and technical assistance: To prepare contractors to: register as Approved Vendors, engage in subcontracting/installer roles, compete for capital, execute clean energy projects. Prevailing wage support: Connect participants to Illinois DOL for compliance training. Networking and matchmaking: With developers, unions, primes, and other entities hiring contractors. Collaboration: Must coordinate services with the Clean Jobs Workforce Network Program, Navigators, Returning Residents Program, and the Primes Accelerator. 3. Performance Goals and Reporting Requirements Quarterly reporting to DCEO must include, at a minimum: Demographics of applicants, accepted participants, and graduates (race, gender, R3 residency, EJ residency, foster care participation, justice-involvement). Graduation outcomes (defined as securing a clean energy project contract with program support). Business metrics: contracts secured, dollar value, partnerships formed, revenue changes. Workforce metrics: jobs created/retained, wages, employee demographics. Pipeline metrics: number of bids/proposals submitted, proposals won, certifications achieved (e.g., BEP, Illinois Shines/Illinois Solar for All). Engagement metrics: training sessions delivered, consultation hours, referrals leading to opportunities, financing secured, success stories (min. 6), stakeholder events (min. 2). 4. Equity, Diversity, and Accessibility Obligations Must embed core equity values (diversity, inclusion, accessibility, equity) into program culture and service delivery. Marketing and recruitment must intentionally reach equity investment-eligible communities and barrier populations. Service delivery must be accessible financially, linguistically, and technologically. Contractors must receive coaching and support to succeed in diverse market conditions. 5. Program Planning and Coordination Grantee must submit a three-year implementation plan (renewed annually) detailing services, milestones, and outcomes. Plan must include marketing/outreach strategy, participant flow, partnerships, and equity-focused strategies. Coordination with other state, regional, and local entities (SBDCs, APEX Accelerators, workforce partners) is required.

Nonprofit Organizations; Education Organizations;

Eligible Applicants: Must be a Community-Based Organization (CBO) selected by the Department of Commerce and Economic Opportunity (DCEO). An accredited public college or university may be eligible, only if it functions as a CBO (i.e., providing direct community-facing services and supports consistent with the statute). Applicants may subcontract with other entities (nonprofit or for-profit) to deliver program services, but the lead applicant must be the CBO and retain responsibility for compliance. Restrictions / Not Eligible: Government entities (state agencies, municipalities, counties, housing authorities) are not eligible to apply as Incubator operators. For-profit organizations are not eligible to apply as Incubator operators (though they can be subcontractors or participants). Individuals are not eligible to apply. Foreign entities are not eligible. Additional Criteria: Applicants must demonstrate capacity to: Deliver business support, training, mentoring, and capital access services for small clean energy contractors. Recruit and serve equity-eligible contractors, including those located in R3 Areas, Environmental Justice Communities, and Equity Investment Eligible Communities. Coordinate services with other CEJA programs (Navigators, Workforce Hubs, Returning Residents, Primes Accelerator). Applicants must have strong ties to the communities they serve and experience serving populations facing barriers such as low educational attainment, prior justice involvement, limited English proficiency, or foster care experience.

Small clean energy contractors, start-up firms, and equity-eligible individuals receiving training, technical assistance, and business development support through CEJA-funded incubator hubs.

Non-competitive

Economic Development

Proof of nonprofit or public entity status, active GATA prequalification, and compliance with all state grant eligibility and documentation requirements.

No formal pre-application coordination or prior approval is required. Applicants are encouraged to review program materials, attend the CEJA informational webinar (if offered), and consult the DCEO Office of Entrepreneurship, Innovation and Technology for clarification on program requirements before submitting an application.

Applications must be submitted electronically through the Illinois Department of Commerce and Economic Opportunity (DCEO) Grant Management System at https://grants.illinois.gov/portal/ . Applicants must complete the Uniform Grant Application, Uniform Budget Template, and all CEJA-specific attachments outlined in the Notice of Funding Opportunity (NOFO). Late or incomplete applications will not be considered.

Geographic coverage by proposed region (prioritizing the highest-scoring applications within each region) and Department discretion to negotiate final awards to align budgets and scope with NOFO requirements and available funds; the Department may issue a reduced award or no award

Awards are made through a merit-based review using the NOFO’s published scoring criteria and an Evaluation Committee average; applications are then prioritized by proposed region, and the Department negotiates final awards (budget and scope) with selected applicants. Successful applicants receive a Notice of State Award (NOSA) via the GATA Portal that specifies funding terms and any specific conditions; the NOSA must be accepted before a grant agreement is executed and is not authorization to begin performance or incur costs. Grant administration follows GATA/2 CFR 200 requirements, including quarterly PPR/PFR reporting, monitoring, audit, and final closeout within 45 days after the period of performance. The Department may issue a reduced award or no award based on program needs and funding availability.

Rolling - applications accepted until funds are depleted. Anticipated award start date: November 1st, 2025.

Open November 1, 2025 through December 31, 2025 (closes 5:00 P.M. CT)

The Merit Based Review process is subject to appeal. However, competitive grant appeals are limited to the evaluation process. Evaluation scores may not be protested. Only the evaluation process is subject to appeal. The appeal must be submitted in writing to the Department within 14 calendar days after the date that the grant award notice has been published. The written appeal shall include the name and address of the appealing party, the identification of the grant and a statement of reasons for the appeal. To file an appeal, applicants must submit the appeal in writing and in accordance with the Merit-Based Application Review Appeals Process listed on the Grant Opportunities page of the DCEO website: https://www2.illinois.gov/dceo/AboutDCEO/GrantOpportunities/Pages/MeritAppReview.aspx.

Initial period of performance is 12 months, with up to two (2) additional 12-month extensions based on grantee performance and funds availability -- for a maximum total term of up to 36 months (3 years).

No cost sharing or match is required for this opportunity.

Funds support delivery of incubator services (capital access, business/financial services, training/mentoring, recruitment/networking, prevailing-wage compliance support). Allowable costs include personnel, fringe, travel, supplies, contractual/subawards/consultants, miscellaneous (e.g., reasonable food for events), and indirect per NICRA/de minimis. Unallowable as direct or indirect: capital expenditures for general-purpose equipment, buildings, and land.

Quarterly Periodic Performance Report (PPR) and Periodic Financial Report (PFR) required; each due within 30 days after the reporting period. Final closeout report due within 45 days after the period of performance.

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Pending confirmation with DCEO Office of Grants Management – FY25 CEJA Clean Energy Appropriation (anticipated 420-35-1900-20-0002

PY24 ($0.00), CY25 ($12,093,175.00), BY26 ($21,000,000.00)

Range: $500,000 – $2,500,000 per award; Average: TBD (dependent on number of hub awards made).

Quarterly metrics include contractor demographics; contracts and dollar values; partnerships; revenue change; jobs created/retained and wages; bids/proposals/wins; certifications and Approved Vendor status; trainings/events and attendance; consultation hours; referrals that led to opportunities; financial health indicators; debt and non-debt financing secured; success stories (min. 6); and legislator events (min. 2).

Grant Accountability and Transparency Act (30 ILCS 708) and 44 Ill. Admin. Code Part 7000; 2 CFR 200 Uniform Guidance (including Procurement 2 CFR 200.317–.327)

Target hub areas for this NOFO: Waukegan, Champaign, Danville, Kankakee; within a broader 14-area statewide footprint (e.g., Chicago South Side; Chicago Southwest/West Sides; Rockford; Aurora; Joliet; Kankakee; Peoria; Champaign; Danville; Decatur; Carbondale; East St. Louis; Alton).

555 W Monroe St, 12th Floor Chicago, IL 60661, 1011 S 2nd St Springfield, IL 62704, 1020 S Spring St Springfield, IL 62704

https://dceo.illinois.gov/aboutdceo/grantopportunities/granteeresources.html

Clean Jobs Workforce Network (5-20); Energy Transition Navigators (5-35); Illinois Climate Works Pre-Apprenticeship (5-40); Returning Residents Clean Jobs Training (5-50); Clean Energy Primes Contractor Accelerator (5-55); Jobs & Environmental Justice Grant Program (5-60).

Examples include capital readiness and business support cohorts; bid/proposal preparation and matchmaking; training/mentoring for contractors; assistance obtaining certifications and Approved Vendor status; and networking/events with hiring entities (all consistent with required services and performance measures).

FY 2025 : $12,093,175
FY 2026 : $21,000,000
FY 2027 : $21,000,000