Clean Energy Grant
On November 1, 2022, the U.S. Department of Energy (DOE) Office of Indian Energy Policy and Programs announced approximately $20 million in new funding for clean energy technology deployment on tribal lands. Individual awards for clean energy technology may range from $100,000 to $4 million, and DOE anticipates making approximately 5 to 15 awards. DOE has dramatically lowered the cost share requirement for this grant. In the past a 50% cost share was required. Now, a minimum 20% cost share is required, with an opportunity for the applicant as part of its application to be considered for a cost share reduction to 10%, based on the tribal poverty rate or the median household income of the tribal community relative to the statewide median household income.
Eligible projects include installation of clean energy generating systems and/or energy efficiency measures for tribal buildings; or, deployment of community-scale clean energy generating systems or community energy storage on tribal lands; or, installation of integrated energy systems for autonomous operation (independent of the traditional centralized electric power grid) to power a single or multiple essential tribal buildings during emergency situations or for tribal community resilience. Submission deadline for applications is February 9, 2023, at 5:00 p.m. Eastern Time.
Electrification Grant
On the same date, DOE also announced separate funding for approximately $15 million for powering unelectrified tribal buildings. Individual awards for this grant may range from $250,000 to $4 million, and DOE anticipates making approximately 4 to 10 awards. DOE has also lowered the cost share requirement for this grant, again to 20%, with an opportunity for the applicant as part of its application to be considered for a cost share reduction to 10%, based on the tribal poverty rate or the median household income of the tribal community relative to the statewide median household income.
Eligible projects include integrated energy systems for electrification or energy infrastructure for electrification. Submission deadline for applications is February 23, 2023, at 5:00 p.m. Eastern Time.
Godfrey & Kahn Assistance
Godfrey & Kahn has assisted tribes and tribal entities with the preparation of renewable energy, energy efficiency, energy-efficient housing and related grant applications that have resulted in total awards of more than $15 million. We have also assisted tribes in packaging federal grants with other grants and tax incentives, including the federal tax credit for renewable energy projects, state and/or utility grants, New Market Tax Credits, or other private funding to drive down the cost of energy-related projects, often resulting in the construction of projects with no upfront capital costs. We can likely work with you to develop similar strategies under the above grants.
For more information about these significant grant opportunities and strategies to use them to meet your Tribe’s energy goals, please contact John Clancy, Brian Pierson or Mark Bender.