Illinois Finance Authority

In September 2023, US Department of Energy awarded $16,063,450 to the State of Illinois in the first award cycle of the Grid Resilience State and Tribal Formula Grants Program under the Bipartisan Infrastructure Law. This award is for the first two years (FY2022 and 2023) of the five-year program (2023-2028). The award is designed to strengthen and modernize Illinois’ power grid and to provide a reliable power infrastructure to all communities to have access to affordable, reliable, and clean electricity.

Section 40101(d) of the Bipartisan Infrastructure Law; US DOE Funding Opportunity Announcement DE-FOA-0002736

20 ILCS 3501/801-15, 20 ILCS 3501/850-5

N/A

The Program is designed to strengthen and modernize Illinois’ power grid and to provide a reliable power infrastructure to all communities to have access to affordable, reliable, and clean electricity, focusing on the following: • Reliability and resiliency improvements in Equity Investment Eligible Communities (EIECs) (https://energyequity.illinois.gov/resources/equity-investment-eligible-community-map.html) and federally designated Justice40 Disadvantaged Communities (DACs) (https://www.whitehouse.gov/environmentaljustice/justice40/) that align with potential climate change impacts. • Grid investments that support environmental objectives such as reducing emissions and leveraging nature-based solutions. • Cost-saving measures that prioritize low- and moderate-income residents to lower their energy burden. • Supporting equity through building awareness in frontline communities, increasing access and opportunities for residents and businesses in EIECs and DACs, and supporting communities and small utilities in planning and investing in resiliency. • Ensuring safe operations and supporting the preparation of the workforce for emerging technology opportunities.

Yes

Minimum Requirements: To be eligible for funding, the proposed project at a minimum must comply with the US DOE minimum requirements and must: a) Result in Community Benefits (as discussed further below); b) Be located in Illinois; and c) Include required Cost Match.

Other;

Eligible entities include: • An electric grid operator, • An electricity storage operator, • An electricity generator, • A transmission owner or operator, • A distribution provider, • A fuel supplier, and • Other relevant entity, as may be determined by the US Secretary of Energy. “Other relevant entity.” The State of Illinois has requested in its application and is working with the Secretary of Energy to approve the following additional eligible recipients: • Non-profit organizations, • Units of local government, • Critical facilities. • Illinois Municipal Electric Association (IMEA) and • Association of Illinois Electric Cooperatives (AIEC) as eligible recipients.

The State of Illinois will prioritize projects that create a substantial benefit to EIECs and DACs within the state. In CEJA, the State of Illinois created a new designation of Equity Investment Eligible Communities (EIECs), defined at the census tract level, and which include the following: R3 Areas (https://r3.illinois.gov/) as established where residents have historically been excluded from economic opportunities and by their rates of child poverty, unemployment, gun injuries, and incarceration, among other factors; and Environmental Justice communities, as defined by the Illinois Power Agency Act (20 ILCS 3855), where residents have historically been subject to disproportionate burdens of pollution, including pollution from the energy sector). Further, the State is using the White House Council on Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST) to identify and track DACs. For the purposes of this Program, the proposed projects must demonstrate a benefit to either a state designated EIEC or a federally designated DAC, using CEJST. Both communities are designated at the census tract level. While investments need not be located within a census tract(s) to create benefits for the identified census tract(s), projects claiming to benefit EIEC or DAC communities, as identified here, must demonstrate substantial and meaningful benefits to such communities.

Project Grants

Public Safety

N/A

Persons interested in applying for funding must submit the projects pre-applications by the dates indicated in the Notice of Funding Opportunity (NOFO) and in accordance with the NOFO instructions.

Application process has been designed to reduce the burden on entities seeking to apply for funding, ensure alignment on funding objectives with respondents, identify needs for technical assistance, and create a collaborative process for project design. The competitive process will be divided into stages: 1. Pre-application. The pre-application process will provide respondents with an accessible, easy-to-navigate method for outlining their proposed project to IFA for selection. The pre-application process will provide the opportunity for entities with limited bandwidth to describe their project, demonstrate the ability of their project to meet program objectives, and receive rapid feedback on their project. IFA will evaluate projects submitted under the pre-application process on their likelihood and ability to meet program objectives. 2. Funding Candidate. Based on a review of a pre-application, a project may be identified as a candidate for funding and would enter into negotiations with IFA for accelerated funding for project development. 3. Competitive, rolling application windows. After the initial pre-application deadline, the IFA reserves the option to open a competitive, rolling application window for project selection. IFA anticipates that if it opens a competitive rolling application process, based on the availability of program funds, applications will be accepted on a quarterly basis and evaluated competitively as a batch, based on the ability of a project to meet program objectives.

IFA/CB will additionally evaluate projects for selection based on, at a minimum: • Alignment with the Program Objectives & Metrics: The extent to which projects are designed to accomplish the objectives identified in this Program Narrative, whether as an individual project or as part of the State’s portfolio. • Expected impact on EIECs/DACs: The estimated reduction in the likelihood and consequences of disruptive events on Illinois’ electric grid as a result of the project on an annual basis and over the life of the project, particularly as it affects DACs, Equity Investment Eligible Communities, and/or Eligible Populations; • Expected Environmental/Public Health Benefits: The estimated environmental quality and public health benefits gained through the project, especially for DACs, Equity Investment Eligible Communities, and/or Eligible Populations; • Contractor and Workforce Commitments: The degree to which the project integrates new workforce training participants, diverse contractors and/or subcontractors. Project Community Benefits assessment: A successful project must score at least 30 points out of maximum 50, with 10 maximum points in each of the five Program Objectives categories: 1) Resilience; 2) Environment; 3) Equity; 4) Affordability; 5) Safety. Each category will be evaluated in the following three brackets: Poor (1-3 points), Fair (4-6 points), Strong (7-10 points), based on the description of the benefits I the project pre-application and the likelihood of the applicant’s ability to achieve them as a direct (or substantial) consequence of the proposed project activities and to successfully measure these benefits. Project Selection Prioritization. To ensure that funding is allocated in accordance with the stated objectives, IFA/CB will follow the following matrix in selecting projects: 1. First, IFA/CB will select projects from Small Utilities (sells not more than 4,000,000 MWh/year) that invest in EIECs and DACs; 2. Then IFA/CB will select projects from other Small Utilities. 3. Next, IFA/CB will select projects from eligible entities that invest in EIECs and DACs. 4. Finally, IFA/CB will evaluate projects that are not specifically designed to benefit EIECs and DACs. If the Small Utility portion of funding is exhausted and there are additional qualified projects proposed by Small Utilities, IFA/CB will consider funding projects from such applicants along with the remaining funding allocated to Large Providers. This approach provides the greatest likelihood that the percentage of Illinois funding made available to eligible entities who sell not more than 4,000,000 MWh of electricity per year is not less than the percentage of all customers in the State that are served by those same eligible entities. Should the initial process fail to result in awards of all funds from the small provider portion, Illinois may conduct one or more subsequent competitive project solicitation cycles with the aim of providing a percentage of funding to Small Providers that is not less than the percentage of all customers in the State that are served by those eligible entities.

Applicants will be notified of the pre-selection decision within 30 days after the deadline for pre-application submission. Before IFA/CB can issue an award, each project pre-selected by the IFA/CB must receive preliminary approval of the US DOE program officer. Once the successful applicants receive notice of pre-selection, the applicants may be required to submit additional information and forms necessary for the IFA/CB to submit the project for the US DOE approval. IFA/CB anticipates sending the Notice of State Award (NOSA) to successful applicants by email within 30 days of the pre-approvals of the applicant’s project by the US DOE. NOTE: Neither the initial notice of pre-selection, nor the Notice of State Award (NOSA) are authorization to begin performance of the project or incur costs.

As determined in the Notice of Funding Opportunity (NOFO).

Within 30 days from the close of the pre-application submission.

N/A

N/A

If the applicant sells more than 4,000,000 megawatt-hours (“MWh”) per year (Large Utility), the applicant will have to commit to match 115% of all federal funds received for the project. If the applicant sells not more than 4,000,000 MWh (Small Utility), the applicant will commit to match one-third + 15% of all federal funds received for the project. Grant funds distributed to eligible entities that do not have sales of electricity would qualify toward the overall required cost match of 115% of all federal funds received for the project. Only costs associated with the Eligible Activities indicated in this NOFO can be counted towards the sub-awardee cost match.

Eligible Activities: Subawards to eligible entities under this award can be used for activities, technologies, equipment, and hardening measures to reduce the likelihood and consequences of disruptive events, including: A. weatherization technologies and equipment; B. fire-resistant technologies and fire prevention systems; C. monitoring and control technologies; D. the undergrounding of electrical equipment; E. utility pole management; F. the relocation of power lines or the reconductoring of power lines with low-sag, advanced conductors; G. vegetation and fuel-load management; H. the use or construction of distributed energy resources for enhancing system adaptive capacity during disruptive events, including: a. microgrids; and b. battery-storage subcomponents; I. adaptive protection technologies; J. advanced modeling technologies; K. hardening of power lines, facilities, substations, of other systems; and L. the replacement of old overhead conductors and underground cables; and M. other measures as determined or approved by US DOE. Non-eligible Activities: A subaward to an eligible entity under this grant Program may not be used for: A. construction of a a. new electric generating facility; or b. large-scale battery-storage facility that is not used for enhancing system adaptive capacity during disruptive events; or B. cybersecurity.

The awarded projects will be required to report their project metrics annually. IFA will post these reports on the IFA’s public website. In addition, the applicant will be required to submit project management reports quarterly throughout the life of the project.

Recipients may be subject to annual auditing requirements.

In addition to implementing the funded project consistent with the approved project proposal and budget, applicants selected for funding must comply with applicable grant terms and conditions and other legal requirements, including GATA, and the U.S. Department of Justice Grants Financial Guide.

DE-GD0000014

N/A

$150,000 - $8,000,000

IFA/CB will select projects that support five core state objectives: Resilience, Environment, Equity, Affordability, Safety and Workforce. This set of metrics and strategies described in the Project Objectives will be used to effectively track whether investments achieve State goals.

Successful applicants eventually selected for funding under this Program will be subject to the applicable requirements of Administrative and Legal Requirements Document (ALRD) for DE-FOA-0002736 (DE-FOA/ALRD-0002736), available here: https://www.fedconnect.net/FedConnect/default.aspx?ReturnUrl=%2ffedconnect%2f%3fdoc%3dDE-FOA-0002736%26agency%3dDOE&doc=DE-FOA-0002736&agency=DOE, unless otherwise noted. When applying for subawards under this Program, applicants must provide information required in the ALRD as applicable to the recipients of the funding.

Application forms and instructions are available at the IFA/CB website at https://www.il-fa.com/programs/grid. If any assistance is needed in accessing application materials or submitting application due to limited Internet access or other limitations, the potential applicant should contact Claire Brinley at 312-651-1319.

160 N. LaSalle Street Suite S-1000 Chicago IL 60601

https://www.il-fa.com/programs/grid

U.S. Department of Energy Grid Resilience State and Tribal Formula Grants Program under the Bipartisan Infrastructure Law: https://www.energy.gov/gdo/grid-resilience-statetribal-formula-grant-program

Through the stakeholder process and the public hearing, the State considered both (a) the amount of funds available under this program in comparison to typical project costs, (b) what projects would be most cost effective, and (c) which targeted solutions could best meet the objectives and metrics of the program. Ultimately, the State finds projects that include one or more of the following project types to be most advantageous: a. Community Resilience Hubs. Resilience investments to support ensuring reliable power for community gathering places that can provide life-essential or other support services to communities during extreme weather and grid-related events. b. Critical Facility Microgrids. Resilience investments to support ensuring reliable power for essential public services that serve large populations that would pose risks to public health & safety if they lost power for extended durations. c. Emergency Equipment Share. Support for the efforts of small municipal and co-op utilities to prepare for and quickly recover from storms by creating a hub of easy-to-access essential equipment that otherwise has long lead times. d. Community-Driven Initiatives. Comprehensive efforts that address resilience needs of a community, that is driven by local community planning efforts. This could include seed funding for early-stage planning. e. Replicable Innovative Pilots. New technology or implementation approaches that address grid resilience needs in new ways that would benefit from the deployment of replicable pilot projects and knowledge-sharing.

FY 2024 : $9,255,528
FY 2025 : $9,217,440