Community Energy Management Program Grant

Funder: Michigan Department of Environment, Great Lakes, and Energy (EGLE)

The Community Energy Management Program, administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), provides matching grants to local governments and tribes for energy management improvements. This initiative aims to promote energy efficiency and renewable energy implementation, aligning with Michigan's climate goals. Eligible projects include energy audits, efficiency upgrades, and community engagement efforts, with a total funding pool of $300,000 and a maximum award of $25,000 per applicant.

NOTE: Application deadline is April 30,2026 or  Until funds are fully committed.
Purpose
The Michigan Department of Environment, Great Lakes, and Energy (EGLE), Energy Services is offering matching grants for communities to improve energy management and accelerate the implementation of energy efficiency and renewable energy for local governments and tribes. This program is part of the EGLE Catalyst Communities Initiative to provide resources to local public officials as they prepare for climate impacts on emergency response and public health and support Governor Gretchen Whitmer’s climate change priorities through measurable reductions in greenhouse gas emissions in line with the MI Healthy Climate Plan.
Objectives
The objectives of the Community Energy Management Program, this RFP, and projects funded hereunder are:
Assist in advancing local governments’ energy-related activities;Promote energy planning to ensure strategic implementation of energy-related activities;Promote energy benchmarking and auditing to increase understanding of energy use;Promote energy efficiency upgrades in appliances, lighting, and building envelopes to reduce energy use and costs;Promote the adoption of renewable energy systems to reduce energy costs and improve public and environmental health;Promote community engagement, outreach, and education to increase public awareness and involvement in energy-related activities
Projects
CEM is designed to meet applicants wherever they are on the energy management spectrum. Accordingly, CEM can be used to fund a range of energy-related projects such as, but not limited to, updating plans, policies, and/or  ordinances to include energy systems, green building standards, climate change adaptation and resiliency; benchmarking energy usage, water usage, and greenhouse gas emissions; ASHRAE Level I or II audits; energy efficiency upgrades; renewable energy projects; public engagement and/or outreach; training; workshops.
Renewable energy projects will only be considered after all, or a majority of, energy efficiency upgrades have been completed as identified in an ASHRAE Level II audit.
Funding
A minimum of $300,000 in funding is expected to be available for this program. The maximum grant award is $25,000 per applicant.

Eligibility

Any local government, tribal government, or other public service entity physically located in Michigan is eligible to applyEligible expenditures include contractual services, supplies/materials, and equipment items.

Ineligibility

EGLE will not fund any expenditures that have occurred before a grant agreement has been executed.  Ineligible ProjectsProjects deemed illegal under the law or inappropriate under contract management standards.Projects considered scientifically unsound or significantly increase risks to workers and/or the public.Projects that will not be conducted in Michigan.Projects involving demonstration of non-commercially available equipment and technologies. This also includes projects involving the purchase of equipment to conduct research, development, or demonstration of energy efficient or renewable energy technologies that are not commercially available.Projects not directed to or lacking significant onsite energy waste reduction and/or renewable energy benefits.Projects that cannot be shared with or have restricted transferability to other entities in Michigan.Projects requiring an environmental assessment study under the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. Section 4321 et seq.) unless the applicant can show proof of the U.S. Department of Energy’s approval of the project.The following costs are disallowed: sick pay, holiday pay, paid vacation time, payroll taxes, vehicles, computers, real property (e.g., land and buildings), parking, tuition reimbursement/remission, vehicle allowance, car rental, subscriptions, dues, memberships, and repair of buildings and structures.