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). Community Geothermal Planning and Pilots 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

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The Community Geothermal Planning and Pilots program is designed to accelerate the deployment of community scale geothermal energy systems. These systems are intended to serve multiple buildings or clusters of homes rather than individual buildings or campuses. The program emphasizes projects that demonstrate measurable greenhouse gas reduction. Through a two-phase approach consisting of Phase One Planning Grants and Phase Two Pilot and Project Deployments, the IFA/CB will fund planning, design, and construction of community scale geothermal systems that demonstrate replicable, cost effective, and community driven models for decarbonized community or shared geothermal systems. The Community Geothermal Phase One Planning Grants will fund planning and design activities for projects that have already begun preliminary development and can demonstrate early progress toward community-scale geothermal deployment.

Yes

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;

Applicants 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 theSAM.gov. Applicants included in the SAM.gov Exclusion List and status on the Illinois Stop Payment List will not be eligible for an award.

Beneficiaries of the Community Geothermal Planning + Pilots Phase One Planning Grants are Illinois communities, residents, and facilities expected to benefit from the future deployment of community-scale geothermal or thermal energy network systems identified through the planning process. Direct beneficiaries include households and businesses that would be served by these systems. Indirect beneficiaries include surrounding residents who may experience improved local air quality, reduced greenhouse gas emissions, and strengthened community resilience. Planning grant activities are intended to yield measurable long-term benefits in reduced carbon emissions, decreased fossil fuel use, and lower or more stable household energy costs.

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. 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. Candidate selection. IFA will evaluate projects submitted under the application process on their likelihood and ability to meet program objectives.

Applications will be reviewed by IFA/ICB and scored using the criteria below. Evaluations will focus on how well each applicant demonstrates a credible pathway to achieving the required Phase One deliverables and producing a complete Community Geothermal Project Plan within twelve (12) months. Reviewers will assess both the applicant’s current progress and their plan to achieve all deliverables required in the Community Geothermal Project Plan as outlined in the Community Geothermal Planning and Pilots Plan. Eligibility, Program Alignment, and Applicant Capacity: The extent to which the project demonstrates that is aligns with the goals of the Community Geothermal Planning + Pilots Program; use geothermal as the primary thermal source; supports the overall CPRG objectives for community-scale development; and demonstrate sufficient organizational, technical, and managerial capacity to complete Phase One activities successfully. Community Scale and Footprint: The ability of the project to demonstrate that the project is designed to serve multiple buildings or customers within a defined neighborhood or census block, and reflects true community scale (~100 households or equivalent units) connecting multiple residential, mixed income, and other community serving properties. Minimum Household Commitment and Community Engagement: The projects commitment and intent to secure participation from at least 25% of households or equivalent customer units within the footprint and clearly outlines a plan to achieve this goal. The ability of the project to demonstrate meaningful community engagement and partnerships throughout planning and design. Technical Feasibility, Design, and Engineering Readiness: ability of the project to demonstrate that it will complete all required technical and engineering deliverables including feasibility studies, mechanical and civil drawings, engineering report, permitting plan, and pre-construction cost estimate in alignment with the deliverables required in the Community Geothermal Project Plan. Financial Feasibility and Ownership Structure: The project demonstrated a clear plan to develop robust financial models covering pre- and post-construction phases, identify available incentives and tax credits, and establish a sustainable ownership and operations structure that maximizes available funding and maintains long-term viability. Workforce and Federal Compliance Planning: The project demonstrates how it will establish a clear plan to comply with DBRA, BABA, and Illinois Works requirements; integrate apprenticeship participation; and prepare any necessary draft Project Labor Agreements or workforce training partnerships. Use of Phase One Funding and Milestones: The project effectively allocates grant funds to support the completion of all deliverables required in the Community Geothermal Project Plan, with a clear 12-month timeline and Attachment B identifying key milestones and deliverables.

IFA/ICB will aim to notify applicants of the selection decision within 45 days after the deadline for application submission. Projects may require review and approval from the Illinois Environmental Protection Agency (IEPA) and the U.S. Environmental Protection Agency (EPA). NOTE: Any notice of selection is not an 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).

IFA/ICB will aim to notify applicants of the selection decision within 45 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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Funding awarded under this solicitation is limited to Phase One planning and design activities that advance community-scale geothermal projects toward implementation readiness. Projects funded under this phase must demonstrate early progress toward development and will use Phase One funds to complete technical, financial, and community planning deliverables necessary to prepare for future construction under Phase Two. Eligible activities may include, but are not limited to, the following: • Technical and Engineering Studies: Activities that support project siting, design, and engineering analysis, including feasibility studies, system design and modeling, site and subsurface assessments, mechanical and civil drawings, and permitting pathways. • Community and Stakeholder Engagement: Engagement with residents, community-based organizations, local governments, and potential customers to define project boundaries, secure participation commitments, and incorporate community input into project design. • Financial and Ownership Modeling: Development of project-level financial models or pro formas and ownership structures, including analysis of available federal, state, and utility incentives, tax credits, and other funding sources. • Workforce and Compliance Planning: Identification of strategies to meet federal and state labor and construction requirements, including the Davis-Bacon and Related Acts (DBRA), Build America, Buy America (BABA) provisions, the Illinois Works Apprenticeship Goals, and the Illinois Prevailing Wage Act. This may include the development of draft Project Labor Agreements (PLAs) and plans for apprenticeship participation and workforce training partnerships. • Legal and Participation Documentation: Preparation of legal and contractual documents needed to support project participation and implementation readiness, including draft or template customer participation agreements, MOUs, partnership agreements, and other documentation necessary for Phase 2 deployment • Preparation of the Final Community Geothermal Project Plan: Compilation of all required technical, financial, community, and compliance deliverables into a complete, actionable plan ready for competitive submission under Phase 2.

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.

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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$100,000-$250,000

Program accomplishments will include completion of all Phase One deliverables and activities outlined in the Community Geothermal Planning + Pilots Plan, including the development of site-specific feasibility studies, engineering and financial analyses, community engagement strategies, and implementation roadmaps that position projects for future deployment. These planning efforts will advance the program’s goals by identifying viable community-scale geothermal projects, supporting equitable participation across priority communities, and establishing the technical, financial, and social foundations necessary to achieve long-term reductions in greenhouse gas emissions, energy costs, and fossil fuel dependence.

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. d. NOTE: Applicants selected for funding under this Program will be subject to the terms and conditions of the Illinois Climate Pollution Reduction Grant (FAIN 00E03862) and US EPA’s General Terms and Conditions, as they apply to subgrantees.

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://illinoisclimatebank.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 2026 : $1,000,000