Illinois Finance Authority

In July 2024, Illinois was announced as one of the recipients of an award under the Climate Pollution Reduction Grant program, created by the Inflation Reduction Act. The U.S. Environmental Protection Agency (US EPA) awarded $430,251,378 to the State of Illinois to implement a variety of programs over the five-year grant period (2024-2029). Stretch Code Adoption Grants are one of these programs.

Section 60114 of the Inflation Reduction Act, US EPA Funding Opportunity Announcement EPA-R-OAR-CPRGI-23-07

Illinois Climate Bank Authorization: 20 ILCS 3501/801-15, 20 ILCS 3501/850-5 The 2023 Illinois Stretch Energy Code, established under 20 ILCS 3125/55, took effect on January 1, 2025.

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Illinois developed this stretch code as part of its broader efforts to improve energy efficiency, reduce greenhouse gas emissions, and align with the state’s ambitious climate goals. By adopting a stretch energy code, municipalities have the opportunity to exceed the baseline statewide energy efficiency requirements. Illinois pursued the development of the stretch energy code to provide a framework for implementing advanced energy-saving measures in new construction and retrofits. The code integrates progressive energy efficiency standards that go beyond the statewide minimum, focusing on enhanced insulation, high-performance heating and cooling systems, and improved building envelope requirements. By doing so, Illinois aims to reduce energy consumption in the building sector, which is a significant contributor to greenhouse gas emissions, while simultaneously lowering utility costs for residents and businesses. The Stretch Building Code Grant Program is designed to facilitate the adoption, implementation, and enforcement of the Illinois Stretch Energy Code by supporting units of local governments with the necessary resources to navigate this process. The program will provide financial support for education, community engagement, and technical assistance to ensure that municipalities are well-equipped to integrate the stretch code into their regulatory frameworks. Over the five-year program period, the goal is to have 90 municipalities and local government units adopt the Illinois Stretch Energy Code, contributing to statewide emissions reductions and greater energy efficiency in both new and existing building stock. Through this grant program, municipalities will receive funding that enables these local governments to better understand the stretch code, determine local impacts, support community engagement, and develop implementation plans. The program aims to streamline the process by offering resources for internal capacity-building, public engagement efforts, and technical training for staff responsible for code enforcement.

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i. Title VI of the Civil Rights Act and other Federal statutes and regulations prohibiting discrimination in Federal financial assistance programs apply, including provisions protecting free speech, religious liberty, public welfare, and the environment per 200 CFR 200.300(a), as well as regulations, including 2 CFR 200.300(b) prohibiting discrimination based on sex, sexual orientation, or gender identity. ii. Consultant Cap. Grant funds available for salary paid to individual consultants is limited to the maximum daily rate for Level IV of the Executive Schedule. iii. Management Fees. Management fees or similar charges in excess of the direct costs and approved indirect rates are not allowable. iv. Foreign Work and Materials. IFA must obtain written consent from US EPA prior to awarding a subaward that will be performed in a foreign country. Alert the IFA in the proposal if any portion of the project will be performed in a foreign country. v. Reporting Executive Compensation. Certain subrecipients receiving federal funding may be required to report executive compensation. For more information, refer to US EPA General Terms and Conditions, section 15.3 and 15.4. vi. Conflicts of Interest. Applicants must have systems in place to address, resolve, and disclose conflicts of interest and must disclose conflicts of interest to IFA, as described in US EPA’s Conflicts of Interest policy. vii. Utilization of Disadvantaged Business Enterprises. US EPA requires that subrecipients make good faith efforts to utilize Disadvantaged Business Enterprises when procuring services and supplies, and retain documentation of doing so. The specific six good faith efforts can be found at 40 CFR Section 33.301(a)-(f). viii. Other Ineligible Activities. Certify that the requested funding will not be used to encourage or support political activities such as the collection and dissemination of information related to potential, planned, or pending legislation or directly or indirectly support or oppose union organizing. ix. Refreshments. IFA has not received advance permission from US EPA to fund light refreshments or meals served at meetings, training workshops, or outreach events. Thus, applicants may not use funds from this grant for these purposes. x. Procurement Standards. The procurement standards in 2 CFR Part 200, including those requiring competition when the subrecipient acquires goods and services from contractors (including consultants), and Domestic preferences for procurements at 2 CFR 200.322 will apply to grant awardees.

Government Organizations;

Only units of local government that are based in Illinois, including cities, towns, and municipalities, are eligible to apply. Applicants included in the SAM.gov Exclusion List and status on the Illinois Stop Payment List will not be eligible for an award.

The Climate Pollution Reduction Grant (CPRG) program in Illinois supports initiatives that reduce greenhouse gas emissions across five key sectors. For the Stretch Code Adoption Grant, beneficiaries include local governments that receive financial and technical support to adopt and implement energy-efficient building codes. Indirect beneficiaries include community members who will benefit from lower utility bills, improved building performance, and reduced exposure to pollution as energy efficiency measures are adopted across the building stock.

Project Grants

Government Services

To submit an application, the applicant must register and pre-qualify through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.grants.illinois.gov/portal. Registration and pre-qualification are required annually. Selected applicants must also register with the federal SAM.gov and must have a Unique Entity Identifier (UEI) assigned in the sam.gov. Applicants included in the SAM.gov Exclusion List and status on the Illinois Stop Payment List will not be eligible for an award. The Grantee Portal alerts the entity alerts of “qualified” status or informs how to remediate a negative verification (e.g., missing UEI Unique Entity Identifier assigned in SAM.gov, not in good standing with the Secretary of State). Inclusion on the SAM.gov Exclusion List cannot be remediated.

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This NOFO is a competitive process to solicit project applications from interested entities to meet the funding objectives of this program. This process has been designed to reduce the burden on entities seeking to apply for funding and ensure alignment on funding objectives with respondents. The competitive process will be divided into stages: 1. Initial application window. The initial application process will provide respondents with an accessible, easy-to-navigate method for outlining their proposed project to IFA for selection. 2. Candidate selection. IFA will evaluate projects submitted under the application process on their likelihood and ability to meet program objectives, as described further in Section E below. Based on a review of applications, projects will be identified for funding and award. 3. Competitive, rolling application windows. After the initial 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.

Selection Criteria: Applications will be reviewed competitively. IFA/ICB will evaluate projects for selection based on the following criteria, at a minimum: • Feasibility and Readiness: The extent to which the applying unit of government demonstrates that it has the capacity to implement the proposed activities and has policies in place, or a willingness to put policies in place, to adopt and implement the Illinois stretch code and facilitating codes updates, if needed. • Quality and Clarity of Proposed Activities: A clear, detailed, and structured plan of activities that are designed to accomplish the program’s objectives. • Municipal Awareness and Capacity Building: The extent to which the proposed project will increase the municipality’s ability to adopt the stretch code, including training municipal staff and leadership, creating internal processes, and setting policies that enable adoption and implementation. • Community Engagement and Education: The degree to which the proposed project incorporates public outreach efforts to inform residents, businesses, and stakeholders about the stretch code, address public concerns, and encourage community participation in decision-making. • Incremental Code Modernization: The extent to which the proposed project includes a structured and realistic plan for phased base code updates (if required), including a clear timeline and framework that leads to full stretch code adoption. • Emissions Reductions and Long-Term Energy Efficiency Improvements: The expected impact of the proposed activities on increasing energy efficiency, reducing greenhouse gas emissions, and ensuring alignment with Illinois’ long-term climate and energy goals.

Applicants will be notified of the selection decision within 30 days after the deadline for application submission. IFA/ICB anticipates sending the Notice of State Award (NOSA) to successful applicants by email within 30 days of the deadline for application submission. NOTE: Neither the initial notice of selection, nor the Notice of State Award (NOSA) are authorization to begin performance of the project or incur costs. Costs incurred before entering into a subaward agreement with the IFA/ICB will not be recoverable.

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

Within 30 days after the deadline for application submission.

IFA/ICB will follow the appeal process under 44 ILL. Adm. Code 7000.350. IFA/ICB intend to give the applicants that were not selected in this round of solicitation sufficient opportunities to develop their application further, and resubmit their projects in the future rounds of project solicitations as they open.

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None.

Subawards to eligible entities under this award can be used for projects that demonstrate an intention and plan to adopt the Illinois Stretch Code, align with statewide goals, or implement base code updates as a strategic step towards full stretch code adoption. Eligible activities may include the following: • Staff Time for Education and Training – Funding can be used to cover staff time for understanding the stretch code, including participation in training sessions, workshops, and internal municipal discussions. • Municipal Leadership and City Council Education – Support for internal education efforts to inform policymakers, city councils, and other municipal leaders about the stretch code and its implications. • Community Outreach and Public Engagement – Execution of outreach initiatives to educate residents, developers, and key stakeholders on the stretch code’s benefits and address public concerns. • Hiring External Consultants or Organizations – Contracting with external experts to provide technical training, policy guidance, and support for the adoption and implementation of the stretch code. • Acquisition of Educational and Training Materials – Procurement of materials and resources needed for municipal staff, city councils, and real estate professionals to understand and promote the stretch code • Staged Code Modernization and Incremental Updates – Support for municipalities in developing a structured, phased approach to updating base codes, such as electrical and mechanical codes, before full stretch code adoption • Technical Assistance for Code Compliance and Implementation – Assistance in reviewing and aligning existing permitting and enforcement processes with stretch code requirements • Contractor and Industry Professional Training – Development and facilitation of training programs to ensure local construction and renovation professionals are prepared to comply with stretch code requirements • Capacity Building for Municipal Code Enforcement – Support for municipalities in improving code enforcement infrastructure, ensuring proper implementation of stretch code provisions • Long-Term Planning and Adoption Strategy Development – Assistance in creating multi-year roadmaps and strategic plans for integrating the stretch code into municipal regulations • Tracking and Reporting of Energy Savings and Emissions Reductions – Establishing systems for municipalities to measure and report on the energy efficiency and environmental impact of stretch code adoption Non-eligible activities: A subaward to an eligible entity under this grant Program may not be used for: • Activities that do not support the adoption and implementation of the stretch building code, or if necessary, facilitating base code updates; • Equipment purchases or rental; • Activities that support measures, activities or projects outside the boundaries of the ten EPA regions; • Costs of acquiring “intangible property,” as defined in 2 CFR 200.1, or • Lobbying activities or union organizing

Grantees will be responsible for ensuring all reporting requirements associated with the federal funding are met. This includes providing timely and accurate reporting to the Climate Bank in compliance with all federal and programmatic obligations. The Climate Bank will ensure that reporting processes are adjusted as necessary to meet updated or additional requirements issued by U.S. EPA. Reporting will include, but is not limited to, project financial and activity report, and assistance in developing sample project case studies. Reporting will include semi-annual reports to assist the Illinois Climate Bank in showing progress on achieving this program’s purpose. These semi-annual progress reports will be due to US EPA within 30 calendar days of the end of the semi-annual reporting period. Consequently, to allow time to compile reports from multiple grantees, reports may be due to the Climate Bank within as few as 10 days of the end of the semi-annual reporting period, which run from October 1 to March 31 and from April 1 to September 30 of each year. Grant recipients will track the impact of stretch code adoption through the metrics identified in the NOFO and as may additionally be requested by IFA/ICB.

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.

FAIN00E03862

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Up to $200,000.

IFA/ICB will select projects that support four core objectives: Municipal Awareness and Capacity Building, Community Engagement and Education, Incremental Code Modernization, and Emissions Reductions and Energy Efficiency Improvements. The set of metrics and strategies described below will be used to effectively track whether investments achieve State and programmatic goals.

i. Title VI of the Civil Rights Act and other Federal statutes and regulations prohibiting discrimination in Federal financial assistance programs apply, including provisions protecting free speech, religious liberty, public welfare, and the environment per 200 CFR 200.300(a), as well as regulations, including 2 CFR 200.300(b) prohibiting discrimination based on sex, sexual orientation, or gender identity. ii. Consultant Cap. Grant funds available for salary paid to individual consultants is limited to the maximum daily rate for Level IV of the Executive Schedule. iii. Management Fees. Management fees or similar charges in excess of the direct costs and approved indirect rates are not allowable. iv. Foreign Work and Materials. IFA must obtain written consent from US EPA prior to awarding a subaward that will be performed in a foreign country. Alert the IFA in the proposal if any portion of the project will be performed in a foreign country. v. Reporting Executive Compensation. Certain subrecipients receiving federal funding may be required to report executive compensation. For more information, refer to US EPA General Terms and Conditions, section 15.3 and 15.4. vi. Conflicts of Interest. Applicants must have systems in place to address, resolve, and disclose conflicts of interest and must disclose conflicts of interest to IFA, as described in US EPA’s Conflicts of Interest policy. vii. Utilization of Disadvantaged Business Enterprises. US EPA requires that subrecipients make good faith efforts to utilize Disadvantaged Business Enterprises when procuring services and supplies, and retain documentation of doing so. The specific six good faith efforts can be found at 40 CFR Section 33.301(a)-(f). viii. Other Ineligible Activities. Certify that the requested funding will not be used to encourage or support political activities such as the collection and dissemination of information related to potential, planned, or pending legislation or directly or indirectly support or oppose union organizing. ix. Refreshments. IFA has not received advance permission from US EPA to fund light refreshments or meals served at meetings, training workshops, or outreach events. Thus, applicants may not use funds from this grant for these purposes. x. Procurement Standards. The procurement standards in 2 CFR Part 200, including those requiring competition when the subrecipient acquires goods and services from contractors (including consultants), and Domestic preferences for procurements at 2 CFR 200.322 will apply to grant awardees.

The full application is available through the www.grants.illinois.gov/portal. If any assistance is needed in accessing application materials or submitting application due to limited Internet access or other limitations, the potential applicant should email federalfunding@il-fa.com.

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

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

Climate Pollution Reduction Grants: https://epa.illinois.gov/topics/climate/climate-pollution-reduction-grants.html; https://www.epa.gov/inflation-reduction-act/climate-pollution-reduction-grants

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FY 2025 : $3,600,000
FY 2026 : $3,600,000
FY 2027 : $3,600,000
FY 2028 : $3,600,000
FY 2029 : $3,600,000