Energy Efficiency and Conservation Block Grants FOA (PDF)

Recovery Act Cooley Alert

KEY ATTORNEY CONTACTS

Elias Blawie 650/843-5060
Jim Fulton 650/843-5103
Gordon Ho 650/843-5190
Craig Jacoby 415/693-2147
James Linfield 720/566-4010
Patrick Mitchell 617/937-2315
Kevin Mullen 202/842-7882

Cleantech Procurement Opportunity

The Department of Energy’s (DOE) Energy Efficiency and Conservation Block Grants (EECBG) provide funds for state and local governments to make investments in energy efficiency and carbon emission reductions. It is anticipated that these funds will be used, in part, to purchase and deploy clean technology solutions, and therefore offer opportunities for clean technology companies to sell products and services into the government marketplace.

Timing

States will submit EECBG applications by May 26, 2009 and local governments will submit applications by June 25, 2009. The period of performance for these grants will be 36 months. In keeping with the agenda of the Recovery Act, and supporting the goal of immediate investment in the economy, entities are required to obligate/commit all funds within 18 months from the effective date of the award. In the event funds are not obligated/committed within 18 months, DOE reserves the right to de-obligate the funds and cancel the award.

Estimated Funding

Nearly $2,700,000,000 is available to be allocated by formula grants to states, cities, counties, and tribes (see Allocation Chart). Every city and county in the country that meets threshold procedural and population requirements is eligible to receive a formula grant. For instance, the city of San Jose, California is eligible to receive $8,840,600 while the city of Watsonville, California is eligible to receive $215,100. States are required to distribute 60% of the amount they receive in subgrants to small cities that are not otherwise eligible to receive formula grants.

Purpose

The purpose of the EECBG Program is to assist eligible government entities in creating and implementing strategies to:

• reduce fossil fuel emissions in a manner that is environmentally sustainable and, to the maximum extent practicable, maximizes benefits for local and regional communities;
• reduce the total energy use of the eligible entities; and
• improve energy efficiency in the building sector, the transportation sector, and other appropriate sectors.

Entities may develop various initiatives and projects that address one or more of the purposes and each activity an entity undertakes is not required to meet all of the stated purposes. The DOE states that it encourages entities to develop many different new and innovative approaches within the framework of the legislation and the guidance to serve these purposes. However, each entity is required to use the funds in a cost-effective manner that is of maximum benefit to the population of that entity and in a manner that will yield continuous benefits over time in terms of energy and emission reductions.