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). The small utility clean energy planning 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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The Small Utility Clean Energy Planning Grant Program will support municipal electric utilities and cooperative electric utilities in aligning power generation planning and procurement with Illinois’ Climate and Equitable Jobs Act (CEJA’s) goal of 100% carbon-free power by 2045. The program will provide financial assistance to support the planning and implementation of clean energy strategies, including the transition away from fossil fuels, and to track resulting greenhouse gas (GHG) emissions reductions related to those strategies. This program is designed to ensure that small utilities can fully participate in Illinois’ clean energy transition by building the capacity to plan, execute, and evaluate their progress toward CEJA-aligned goals. Subaward Objectives: Administered by IFA/ICB, Illinois will conduct a competitive selection process to award up to $400,000 per year in federal funding through approximately 2 grants of up to $200,000 each. These grants will be made on a competitive basis to municipal and cooperative electric utilities, supporting strategic clean energy planning, procurement, and implementation efforts. IFA/ICB will select projects that support all three core objectives: 1. Clean Energy Roadmap and Strategy Development, 2. Utility Capacity Building and Procurement Readiness, and 3. Greenhouse Gas Emissions Reductions These are the central pillars of the program, every selected project must demonstrate how it contributes to each. Projects that already have an already completed roadmap or clean energy strategy may use grant funding solely to support Objectives 2 and 3. However, if a roadmap or strategic plan is being developed under Objective 1, it must be completed within 12 months of contract execution. The set of metrics and strategies described below will be used to effectively track whether investments achieve State and programmatic goals.

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Funding Compliance Requirements. In responding to this NOFO, applicants must acknowledge compliance with the requirements related to this US EPA subaward: 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.

Other;

Only municipal and cooperative electric utilities in Illinois are eligible to apply. Applicants included in the SAM.gov Exclusion List and 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 Small Utility Clean Energy Planning Grant, beneficiaries include municipal and cooperative utilities that receive financial and technical support to transition to renewable energy. Indirect beneficiaries include the communities these utilities serve, who will benefit from cleaner energy sources, improved air quality, and enhanced energy resilience.

Project Grants

Quality of Natural, Cultural, and Environmental Resources

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 the following 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 all program objectives, as described further in Section E below. Based on the 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, based on the availability of program funds, if it opens a competitive rolling application process, 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 applicant demonstrates readiness to undertake planning activities, including the ability to evaluate, re-contract, or transition away from fossil fuel-based power sources toward clean energy alternatives. Applicants should also demonstrate they have the capacity or partnerships in place to complete the proposed work. • Quality and Clarity of Proposed Activities: A clear, detailed, and structured plan of activities that are designed to accomplish the program’s objectives. • Clean Energy Roadmap and Strategy Development: The degree to which the proposed project supports the development of a utility roadmap or strategic planning document that aligns with CEJA’s carbon-free goals. This includes assessments of current portfolios, fossil fuel transition planning, and actionable procurement strategies. For applicants with a completed roadmap, scoring will consider how well the existing plan aligns with CEJA objectives, incorporates fossil fuel transition strategies, and includes clear, actionable procurement pathways. Additional points may be awarded for evidence of stakeholder engagement, regulatory alignment, or prior governance approvals. • Utility Capacity Building and Procurement Readiness: The extent to which the proposed project builds technical and administrative capacity to move from planning to implementation, including internal staff development, governance processes, and readiness to issue clean energy procurement RFPs. This includes projects where a utility already has a clean energy roadmap or plan in place and seeks support to begin implementation. • Greenhouse Gas Emissions Reduction: The degree to which the proposed project will lead to measurable GHG reductions, including emissions baseline, modeled scenarios, and planned procurement actions.

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 a clear strategy to support clean energy transition planning, aligned with statewide CEJA goals, and facilitate the retirement, replacement, or re-contracting of fossil fuel-based electricity sources. Eligible activities may include the following: • Conducting Technical and Financial Assessments: Funding may be used for staff time or consultants to perform comprehensive analyses evaluating renewable energy options, determining cost-effectiveness, and assessing system compatibility and infrastructure readiness for municipal and cooperative electric utilities. • Hiring External Consultants or Technical Experts: Contracting with subject matter experts to assist with roadmap development, feasibility modeling, power procurement negotiations, energy contracting, regulatory analysis, and infrastructure planning. • Clean Energy Procurement Strategy Development: Funds may support the creation of long-term procurement strategies, including staff or consultant-led planning documents that evaluate load growth, infrastructure requirements, and generation mix scenarios consistent with CEJA's carbon-free targets. • Securing Renewable Energy Power Purchase Agreements (PPAs) or Clean Pow: Grants may support staff time or external support for designing and executing clean power procurement strategies, negotiating PPAs, or structuring other carbon-free energy supply agreements. • Emissions Baseline and Reduction Modeling: Grants may be used to establish current GHG emissions baselines and to model future emissions scenarios based on proposed clean energy roadmaps or procurement actions. Funds can cover internal staff work, modeling tools, or consultant support. • Roadmap Development and Reporting: Creating final roadmap documents with milestones, timelines, and implementation strategies that demonstrate clear alignment with CEJA goals and include actionable next steps. • GHG Emissions Tracking Tools and Resources: Funding may be used to acquire or implement software, tools, or data services to monitor and report greenhouse gas emissions reductions over time. This includes resources needed to track progress from the established baseline through implementation of the roadmap or procurement plan. Non-eligible activities: A subaward to an eligible entity under this grant Program may not be used for: • Activities that do not support municipal and cooperative electric utility alignment with CEJA goals or contribute to the reduction of greenhouse gas (GHG) emissions from procured energy sources; • 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.

The awarded projects will be required to report project metrics semiannually. IFA/ICB may post these reports on the IFA’s public website. In addition, the applicant will be required to submit project management reports quarterly or semi-annually throughout the life of the project as indicated above.

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 all three core objectives: 1. Clean Energy Roadmap and Strategy Development, 2. Utility Capacity Building and Procurement Readiness, and 3. Greenhouse Gas Emissions Reductions.

Funding Compliance Requirements. In responding to this NOFO, applicants must acknowledge compliance with the requirements related to this US EPA subaward: 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 climatebank@il-fa.com.

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

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

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 : $400,000
FY 2026 : $400,000
FY 2027 : $400,000
FY 2028 : $400,000
FY 2029 : $400,000