Funding Allocated for the Energy Efficiency Materials Pilot Program

This article was updated April 15, 2022.

Under the Energy Efficiency Materials Pilot Program, a program created by the Infrastructure Investment and Jobs Act (IIJA), certain not-for-profit organizations would be eligible to receive grants of up to $200,000 for the installation of energy-efficient materials in their buildings.

Many details are still being developed for the program, but the broad framework passed as part of the IIJA, signed into law by President Joe Biden on November 15, 2021. The Department of Energy estimates that the application opening date will occur in the first quarter of 2023.

The grants will provide buildings owned and operated by 501(c)(3) not-for-profit organizations with energy-efficient materials. An overview of the criteria follows.

Energy-Efficient Materials

The IIJA stipulates that these materials, products, equipment, or systems reduce the use of energy or fuel by the not-for-profit organization.

Energy-efficient materials include:

  • Roof or lighting systems, or components of such systems
  • Windows
  • Doors, including security doors
  • Heating, ventilation, or air conditioning (HVAC) systems, or components of such systems, including insulation, wiring, and plumbing improvements needed to serve a more efficient system

The Department of Energy will manage the program, and its secretary has one year to establish the program.

Performance-Based Criteria

Although specific criteria haven’t been set, IIJA calls for the following performance-based criteria to be used in determining the awarding of grants:

  • The energy savings achieved
  • The cost-effectiveness of the use of energy-efficiency materials
  • An effective plan for evaluation, measurement, and verification of energy savings
  • The financial need of the applicant

The IIJA appropriated a total of $50 million for this program for the period of fiscal years 2022–2026, or until the funds are expended.

The IIJA also includes a grant program for energy efficiency and renewable energy improvements at public school facilities, including:

  • Repairs and renovations that lead to a direct reduction in school energy costs
  • Repairs and renovations involving the installation of renewable energy technologies
  • Installation of alternative-fueled vehicle infrastructure on school grounds

The IIJA authorizes $500 million for public schools for fiscal years 2022–2026.

We’re Here to Help

To learn more about grant options under the Energy Efficiency Materials Pilot Program, contact your Moss Adams professional.

You can also learn more about our Not-for-Profit Practice and additional topics affecting the industry.

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