Public Water Supply Energy Efficiency Grant Program-Round 2

Public Water Supply Energy Efficiency Grant Program-Round 2

Illinois EPA Office of Energy intends to fund the implementation of energy efficiency projects at public water supply (PWS) facilities, also referred to as drinking water treatment plants. Eligible energy efficiency measures must have been identified in an earlier energy efficiency assessment. Energy efficiency and energy conservation measures may include improvement to pump and motor equipment including proper sizing and/or upgrades to standard efficiency motors or installment of variable frequency drives (VFDs); energy demand management, including load shifting; as well as HVAC and/or lighting upgrades.

Projects will be scored and selected by proposed energy savings (kWh) per dollar invested and energy cost impact. Additional points will be awarded to proposed projects serving an area of environmental justice concern, as identified by the Illinois EPA Office of Environmental Justice AND for projects served by municipally owned electric utilities or electric cooperatives. Energy burden (%) of the PWS service area will be used to break a tie.

Match is required to apply for the PWS Energy Efficiency Grant Program. Leveraged or match funding may include money spent (i.e. personnel, indirect, etc.) or in-kind services utilized to complete the approved scope of work within the effective dates of the grant agreement. The applicant may not utilize other federal funds to meet match minimum. Cash and in-kind contributions used to meet the minimum matching contribution requirement are subject to the limitations on expenditures described in 10 CFR 420.18(a) but are not subject to the 20 percent limitation in 10 CFR 420.18(b). Minimum match requirements are as follows:
• 10% match in an Illinois EPA area of Environmental Justice concern (utilize the Illinois EPA EJ Start mapping tool to verify location)
• 20% match outside an EJ area of concern

Illinois EPA Office of Energy is responsible for state-level program development and management, including the application process with determined criteria for this grant program and establishment of projects eligible for funding aimed at reducing the energy burden for Illinois consumers. Funding for this grant program comes directly from the U.S. Department of Energy (USDOE) Infrastructure Investment and Jobs Act (IIJA) State Energy Program (SEP) funding. USDOE SEP provides funding and technical assistance to advance state-led energy initiatives and maximize the benefits of decreasing energy waste, per 10 CFR 420.

Details

• Awarding Agency: Environmental Protection
• Departments: Office of Energy
• CSFA Number: 532-30-3312
• CSFA Popular Name: PWS EE Grant Program
• Funding Opportunity Number: 26-3312-02
• Assistance Listings Number: 81.041
• Announcement Type: Initial Announcement
• Award Type: Competitive
• Total Funding Available: $1,500,000.00
• Expected Number of Awards: 15
• Funding Sources: Federal Or Federal Pass Through
• Capital Grant: No
• Indirect Costs Allowed: Yes
• Posted Date: 2026-03-02
• Award Period: 2026-08-03 – 2028-06-30

Funding Source Description

The USDOE IIJA SEP funds support states in modernizing energy systems, strengthening energy security, and supporting a more affordable energy future. The IIJA is Public Law 117-58, and Section 40109 addresses the SEP within the energy provisions of the law.

Funding Restrictions

Refer to 2 CFR 200, as amended by 2 CFR 910 regulations - Subpart E - Cost Principles and 44 Ill. Admin. Code Part 7000

Indirect Cost Description

Indirect costs are not required under this program; however, to charge indirect costs, the Applicant must select one of the following three options:

_ a) Federally Negotiated Rate. Organizations that receive direct federal funding may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. The State of Illinois will accept the federally negotiated rate. The applicant must provide a copy of the federal NICRA.
_ b) State Negotiated Rate. The applicant must negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate or elect to use the De Minimis rate.
_ c) De Minimis Rate. An organization that has never received a Federally Negotiated Rate may elect a de minimis rate of 15% of modified total direct costs (MTDC). Once established, the de minimis rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the de minimis rate.

The indirect cost rate proposal must be submitted to the State of Illinois within 90 days of the notice of award. An applicant has the discretion not to claim payment for indirect costs. Applicants that elect not to claim indirect costs cannot be reimbursed for indirect costs.

Restrictions on Indirect Costs

No

State Award Notices

After Illinois EPA has reviewed applications for eligibility and completed merit-based scoring, successful applicants will receive notification of award. After all prerequisites to the Grant Agreement have been completed, the Grant Agreement between the Illinois EPA and the applicant will be sent for the applicant to sign and return. Once the Grant Agreement is fully executed by the Illinois EPA, a copy will be returned to the applicant.

Only after the Grant Agreement has been fully executed can expenses be incurred for reimbursement. Any expenses incurred outside of the grant period (before or after) are not eligible either as match or for reimbursement related to the grant award.

Administrative and National Policy Requirements

Grant agreements from this opportunity are administered under the Code of Federal Regulations at 2 CFR 200. The Grant Funds Recovery Act (30 ILCS 705) also governs all grant agreements resulting from this NOFO, except in the event of a conflict between the Illinois Grant Funds Recovery Act and the Grant Accountability and Transparency Act. In this circumstance, the provisions of the Grant Accountability and Transparency Act control.

Reporting

All grantees will be required to submit quarterly reports to the Illinois EPA Office of Energy.

• The Periodic Performance Report (PPR), the Periodic Financial Report (PFR), and Narrative Project Reports (NPR) are required at a minimum on a quarterly basis. Quarterly reporting will be required unless more frequent reporting is required pursuant to specific award conditions.
• These reports will describe the expenditure(s) of the funds and related performance measures. The first PPR, PFR, and NPR report shall cover the first three months after the Award begins. Quarterly reports must be submitted no later than 30 calendar days following the three-month period covered by the report. Failure to submit the required PPR, PFR, and NPR report may cause a delay or suspension of funding.
• Quarterly reports will be due on October 15 (Q1 = July-September), January 15 (Q2 = October-December), April 15 (Q3 = January-March), and July 15 (Q4 = April-June) over the duration of the grant project period. Grantees must report the status of the project, specific tasks completed during the reporting period, tasks that remain to be completed, specific costs incurred and paid by the grantee during the reporting period, and projected date of project completion.
• Grantees will also be required to submit a cumulative performance, financial, and narrative close-out report. Any additional reporting requirements will be outlined in the executed agreement.

Additional Information

https://epa.illinois.gov/topics/energy.html

For more information about Office of Energy programming. Sign up for notices through Office of Energy ListServ available here: https://epa.illinois.gov/topics/energy.html or call 217-785-8841.