DE-FOA-0003056-IRA_CODES_FOA_Mod0001.pdf

U.S. Department of Energy (DOE)

Office of State and Community Energy Programs (SCEP)

Inflation Reduction Act of 2022 (IRA) Assistance for the Adoption of the Latest and Zero Building

Energy Codes

Funding Opportunity Announcement (FOA) Number: DE-FOA-0003056

FOA Type: Initial

Assistance Listing Number: 81.117

FOA Issue Date: December 18, 2023

First Round Informational Webinar: January 17, 2024

Submission Deadline for First Round of Concept Papers: February 9, 2024 5:00 p.m. ET

Submission Deadline for First Round of Full Applications: April 30, 2024 5:00 p.m. ET

Expected Submission Deadline for Replies to Reviewer Comments:

July 2024

Expected Date for First Round of DOE Selection Notifications: August 2024

Submission Deadline for Second Round of Concept Papers: May 31, 2024 5:00 p.m. ET

Submission Deadline for Second Round of Full Applications: September 13, 2024 5:00 p.m. ET

Expected Timeframe for Third Round of Concept Papers and Applications (pending funding availability):

Fall/Winter 2024

• Applicants must submit a Concept Paper by 5 p.m. ET on the due dates listed above to be eligible to submit a Full Application in the first and second funding rounds. DOE will put out a more concrete schedule for additional rounds of funding as the timing gets closer.

Questions about this FOA? Email IRACODES@hq.doe.gov.

Problems with Exchange? Email InfrastructureEXCHANGESupport@hq.doe.gov. Include FOA name and number in subject line.

• To apply to this FOA, applicants must register with and submit application materials through Infrastructure eXCHANGE at Infrastructure eXCHANGE: Registration (energy.gov), SCEP’s online application portal.

• Applicants must designate primary and backup points-of-contact in Infrastructure eXCHANGE with whom SCEP will communicate to conduct award negotiations. If an application is selected for award negotiations, it is not a commitment to issue an award.

It is imperative that the applicant/selectee be responsive during award negotiations and meet negotiation deadlines. Failure to do so may result in cancelation of further award negotiations and rescission of the selection.

• Unique Entity Identifier (UEI) and System for Award Management (SAM) - Each applicant (unless the applicant is excepted from those requirements under 2 CFR 25.110) is required to: (1) register in the SAM at https://www.sam.gov before submitting an application; (2) provide a valid UEI number in the application; and (3) maintain an active SAM registration with current information when the applicant has an active federal award or an application or plan under consideration by a federal awarding agency. DOE may not make a federal award to an applicant until the applicant has complied with all applicable UEI and SAM requirements and, if an applicant has not fully complied with the requirements by the time DOE is ready to make a federal award, DOE will determine that the applicant is not qualified to receive a federal award and use that determination as a basis for making a federal award to another applicant.

NOTE: Due to the high number of UEI requests and SAM registrations, entity legal business name and address validations are taking longer than expected to process. Entities should start the UEI and SAM registration process as soon as possible. If entities have technical difficulties with the UEI validation or SAM registration process, they should use the HELP feature on SAM.gov. SAM.gov will address service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue.

Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

mailto:IRACODES@hq.doe.gov mailto:InfrastructureEXCHANGESupport@hq.doe.gov httpss://infrastructure-exchange.energy.gov/Registration.aspx?rid=new httpss://infrastructure-exchange.energy.gov/Registration.aspx?rid=new httpss://www.sam.gov/ httpss://sam.gov/content/help httpss://sam.gov/content/home httpss://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1 httpss://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1 number in subject line.

Modifications

All modifications to the FOA are highlighted in the body of the document in [YELLOW].

Mod. No. Date Description of Modification

0001 3/4/2024 Providing deadlines for the second round of Concept Papers and Full Applications. Clarifying text. (FOA Cover Page, p. 7) number in subject line.

i

Table of Contents

Table of Contents ............................................................................................................................. i

Overview of Key Information

I. Funding Opportunity Description

A. Background and Context

i. Program Purpose

ii. Program Overview and Strategic Goals

B. Topic Areas

i. Guidance for Topic Selection

C. Applications Specifically Not of Interest

D. Community Benefits Plan: Job Quality and Equity

E. Authorizing Statutes

II. Award Information

A. Award Overview

i. Estimated Funding

ii. Period of Performance

B. DOE Funding Agreements

i. Funding Agreements with Federally Funded Research and Development Center (FFRDCs)

ii. Grants

III. Eligibility Information

A. Eligible Applicants

i. Delegation of Authority

ii. Domestic Entities

iii. Foreign Entities

B. Cost Sharing

C. Compliance Criteria

D. Responsiveness Criteria

E. Other Eligibility Requirements

i. Requirements for Non-DOE/NNSA FFRDCs Included as a Subrecipient

F. Limitation on Number of Concept Papers and Full Applications Eligible for Review number in subject line.

ii

G. Questions Regarding Eligibility

IV. Application and Submission Information

A. Application Process

i. Additional Information on Infrastructure eXCHANGE

B. Application Forms

C. Content and Form of the Concept Paper

D. Content and Form of the Full Application

i. Full Application Content Requirements

ii. Technical Volume

iii. Resumes

iv. Letters of Commitment

v. Community Partnership Documentation

vi. Equivalency Calculator and Equivalency Analysis

vii. SF-424: Application for Federal Assistance

viii. Summary/Abstract for Public Release

ix. Budget Justification Workbook

x. Summary Slide

xi. SF-LLL: Disclosure of Lobbying Activities

xii. Current and Pending Support

xiii. Community Benefits Plan

xiv. Delegation of Authority (if applicable)

xv. Proposed Building Energy Code (if applicable)

xvi. Waiver Requests (if applicable)

xvii. Potentially Duplicative Funding Notice (if applicable)

xviii. Authorization for Non-DOE/NNSA or DOE/NNSA FFRDCs (if applicable)

xix. Budget for DOE/NNSA FFRDC (if applicable)

xx. Statement of Project Objectives (SOPO) (if applicant is selected for negotiation)

xxi. Subrecipient Budget Justification (if applicable, if applicant is selected for negotiation)

xxii. Community Benefits Plan Budget Justification (if applicant is selected for negotiation)

E. Content and Form of Replies to Reviewer Comments

F. Post Selection Information Requests

G. Unique Entity Identifier (UEI) and System for Award Management (SAM) number in subject line.

iii

H. Submission Dates and Times

I. Intergovernmental Review

J. Funding Restrictions

i. Allowable Costs

ii. Pre-Award Costs

iii. Performance of Work in the United States (Foreign Work Waiver)

iv. Construction

v. Foreign Travel

vi. Equipment and Supplies

vii. Build America Buy America Requirements for Infrastructure Projects

viii. Lobbying

ix. Risk Assessment

x. Invoice Review and Approval

xi. Prohibition Related to Foreign Government-Sponsored Talent Recruitment Programs

xii. Affirmative Action and Pay Transparency Requirements

xiii. Foreign Collaboration Considerations

V. Application Review Information

A. Technical Review Criteria

i. Concept Papers

ii. Full Applications

iii. Criteria for Replies to Reviewer Comments

B. Standards for Application Evaluation

C. Other Selection Factors

i. Program Policy Factors

D. Evaluation and Selection Process

i. Overview

ii. Pre-Selection Clarification

iii. Recipient Responsibility and Qualifications

iv. Selection

E. Anticipated Notice of Selection and Award Negotiation Dates

VI. Award Administration Information

A. Award Notices number in subject line.

iv

i. Ineligible Submissions

ii. Concept Paper Notifications

iii. Full Application Notifications

iv. Applicants Selected for Award Negotiations

v. Alternate Selection Determinations

vi. Unsuccessful Applicants

B. Administrative and National Policy Requirements

i. Registration Requirements

ii. Award Administrative Requirements

iii. Foreign National Participation

iv. Subaward and Executive Reporting

v. National Policy Requirements

vi. Environmental Review in Accordance with National Environmental Policy Act (NEPA)

vii. Applicant Representations and Certifications

viii. Statement of Federal Stewardship

ix. Subject Invention Utilization Reporting

x. Intellectual Property Provisions

xi. Reporting

xii. Go/No-Go Review

xiii. Conference Spending

xiv. Uniform Commercial Code (UCC) Financing Statements

xv. Real Property and Equipment

xvi. Implementation of Executive Order 13798, Promoting Free Speech and Religious Liberty 64

xvii. Participants and Collaborating Organizations

xviii. Current and Pending Support

xix. U.S. Manufacturing Commitments

xx. Interim Conflict of Interest Policy for Financial Assistance

xxi. Fraud, Waste, and Abuse

xxii. Human Subjects Research

VII. Questions/Agency Contacts

VIII. Other Information

A. FOA Modifications number in subject line.

v

B. Government Right to Reject or Negotiate

C. Commitment of Public Funds

D. Treatment of Application Information

E. Evaluation and Administration by Non-Federal Personnel

F. Notice Regarding Eligible/Ineligible Activities

G. Notice of Right to Conduct a Review of Financial Capability

H. Requirement for Full and Complete Disclosure

I. Retention of Submissions

J. Government Rights in Subject Inventions

K. Rights in Technical Data

L. Copyright

M. Export Control

N. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment .. 72

O. Personally Identifiable Information (PII)

P. Annual Independent Audits

Q. Informational Webinar

Appendix A – Waiver Requests For: 1. Foreign Entity Participation; and 2. Foreign Work

Appendix B – Required Use of American Iron, Steel, Manufactured Products, and Construction Materials

Appendix C – Qualified Building Energy Codes for Topic Area 1

Appendix D – List of Acronyms number in subject line.

Overview of Key Information

The Inflation Reduction Act (IRA) provides up to $1 billion for States and local governments to take innovative approaches to improve the efficiency of and reduce emissions from both new and existing buildings. Under Section 50131 of the IRA, up to $330 million is provided for adopting and implementing: (A) a building energy code (or codes) for residential buildings that meets or exceeds the 2021 International Energy Conservation Code (IECC), or achieves equivalent or greater energy savings; (B) a building energy code (or codes) for commercial buildings that meets or exceeds the ANSI/ASHRAE/IES Standard 90.1–2019, or achieves equivalent or greater energy savings; or (C) any combination of building energy codes described in subparagraph (A) or (B). Up to $670 million is provided for adopting and implementing building energy codes that meet or exceed the zero energy provisions in the 2021 IECC or an equivalent stretch code.

This funding will support States and units of local government that have authority to adopt building codes in adopting, implementing, enforcing, and measuring compliance rates of certain building energy codes that meet or exceed the minimum energy savings specified in the IRA, while training and educating their workforce and building localized capacity.

Recipients must develop an implementation plan that provides approaches to achieve full compliance with the adopted code, plans for capacity building to support ongoing implementation, and active workforce training and enforcement programs.

This Funding Opportunity Announcement (FOA) is being issued by the U.S. Department of Energy (DOE)’s State and Community Energy Program (SCEP) under IRA Section 50131, Technical Assistance for the Adoption of Building Energy Codes. The goal of this FOA is to improve new construction and major renovations; increase building code effectiveness;

provide implementation support for adopting updated building energy codes, zero energy codes, and stretch codes; educate stakeholders; improve the resilience of buildings; and provide meaningful benefits to communities nationwide.

This competitive FOA provides funding to States1 and units of local government that have the authority to adopt building codes to assist with the adoption and implementation of the latest model building energy codes, zero energy codes, and certain innovative code equivalents, which may include certain building performance standards. This FOA complements, but does not duplicate, the previously-released Administrative and Legal Requirements Document (ALRD) Formula Funding opportunity released under IRA Section 50131. This FOA is designed to fund additional qualifying jurisdictions and to fund distinctly different and unique activities.

1 State is defined for the purpose of this FOA as a State, the District of Columbia, Puerto Rico, or any territory or possession of the United States.

mailto:IRACODES@hq.doe.gov mailto:InfrastructureEXCHANGESupport@hq.doe.gov httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and number in subject line.

I. Funding Opportunity Description

A. Background and Context

The Office of State and Community Energy Programs (SCEP) is issuing this Funding Opportunity Announcement (FOA). Awards made under this FOA will be funded, in whole or in part, with funds appropriated by Section 50131 of the Inflation Reduction Act (IRA) of 2022, Assistance for Latest and Zero Building Energy Code Adoption.

The Inflation Reduction Act of 2022 (IRA) provides up to $1 billion for States and units of local government with the authority to adopt building energy codes to adopt and implement the latest building energy codes, zero energy building codes, or equivalent codes or standards.

An energy code is one of several types of building codes that help contribute to the overall health, safety, efficiency, and long-term resilience of buildings. Energy codes can be adopted directly as a standalone code, such as the International Energy Conservation Code (IECC), which is commonly adopted by States and local governments. Moreover, energy codes are also fundamental components of certain more broadly adopted building codes, including the International Building Code (IBC) and International Residential Code (IRC), which are referenced in the United States as “parental” codes. Energy codes are often described as a subset of these broader building codes, representing distinct chapters of the IBC and IRC alongside other commonly recognized provisions, such as those pertaining to structural, plumbing, or electrical requirements, and other basic aspects of building design and construction. Adoption and implementation of such codes supports the decarbonization of new and existing residential and commercial buildings. In addition, updates to refrigerant approvals at the State and local level that allow for the installation of equipment that utilize refrigerants with lower global warming potential in accordance with the Environmental Protection Agency’s Significant New Alternatives Policy Program along with energy code updates helps to support the transition to a clean energy economy.

This opportunity assists eligible entities in further decarbonizing their buildings through the adoption of the latest national model building energy codes, zero energy codes, other codes that deliver equivalent or greater energy savings, including innovative approaches to decarbonize existing buildings through certain measurable and enforceable requirements.

The IRA is unprecedented in its opportunity to support sustainable change at the State and local level with respect to advancing the energy efficiency of new, renovated, and existing buildings. DOE is particularly interested in supporting States and local governments in implementing local capacity building, multi-year investments in workforce and education, and long-term improvements in building energy codes through multi-cycle adoption and building performance standards (BPS).

Building energy codes establish minimum levels of energy efficiency for new and existing residential and commercial buildings. Model energy codes, such as the 2021 IECC and ASHRAE Standard 90.1-2019, are developed and updated through national consensus mailto:IRACODES@hq.doe.gov httpss://www.congress.gov/bill/117th-congress/house-bill/5376/text number in subject line.

processes. States and local governments ultimately implement building energy codes, which are handled through various adoption, compliance, and enforcement processes and can vary widely across the United States. Many States have consistently received funding through their State Energy Plan to support the adoption of traditional building energy codes. In addition to this competitive funding opportunity announcement, a formal funding announcement was published on September 19, 2023 for States pursuing pre-approved code packages.

DOE understands that implementation of building energy codes also depends on a significant number of stakeholders, including State and local government jurisdictions, building and safety departments, builders, contractors, and design professionals, owners, occupants, as well as a variety of critical community interests. Successful implementation of the latest model energy codes, zero energy codes and other innovative approaches to increasing building energy efficiency relies upon the formation of partnerships amongst many of these groups and is critical to ensuring their benefits are realized in American homes and businesses.

i. Program Purpose

On August 16, 2022, President Joseph R. Biden signed the Inflation Reduction Act (IRA) into law, making the single largest investment in addressing climate change through clean energy technologies. Recognizing all facets of our economy contribute to the climate crisis, investments needed for a clean energy future must be broad and deeply impactful. Through Section 50131 of the IRA, Assistance for Latest and Zero Building Energy Code Adoption, the 117th U.S. Congress appropriated $1 billion to facilitate the adoption and implementation of the latest model energy codes (i.e., 2021 IECC and ANSI/ASHRAE/IES Standard 90.1-2019), zero energy building codes, or equivalent codes or standards throughout the country. This IRA funding will support States and local governments in this effort with funding available through September 30, 2029. Specifically, this provision makes the following investments to assist States and units of local government with authority to adopt building codes:

• $330 million to adopt and implement the latest building energy code that meets or exceeds the energy savings in the 2021 IECC) for residential buildings and the ANSI/ASHRAE/IES Standard 90.1–2019 for commercial buildings; and

• $670 million to adopt and implement a building energy code that meets or exceeds the zero energy provisions in the 2021 IECC code or an equivalent stretch code.

This funding opportunity is in support of IRA Section 50131, Assistance for Latest and Zero Building Energy Code Adoption. The Topic Areas are designed to complement, but not duplicate, the previously-released Administrative and Legal Requirements Document (ALRD) Formula Funding opportunity released under IRA Section 50131 to provide formula funding to eligible States. This competitive FOA provides funding to States and units of local government with the authority to adopt building codes for activities aligned with IRA Section 50131 including the adoption and implementation of the latest model building energy codes, zero energy codes, and innovative code equivalents such as building performance standards.

mailto:IRACODES@hq.doe.gov mailto:InfrastructureEXCHANGESupport@hq.doe.gov httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and number in subject line.

ii. Program Overview and Strategic Goals

Section 50131 of the IRA provides funding for certain activities in support of specified building energy codes (i.e., qualifying building energy codes). In alignment with Section 50131, this FOA seeks to support the adoption and implementation of eligible codes by States, Territories, and units of local government that have the authority to adopt building codes. Detailed technical descriptions of the specific Topic Areas are provided in the sections that follow.

B. Topic Areas

Detailed Topic Area descriptions are provided below. Note that awards may not be made in all areas and the distribution will depend on the number, quality, and potential impact of the proposals received. Detailed evaluation criteria for each Topic Area can be found in Section V (A)–(C). In all cases, the proposed project structure should include a clear validation and demonstration of adoption and implementation of eligible codes in alignment with Section 50131 of the IRA.

Topic Area 1: Adoption and Implementation of Qualifying Building Energy Codes by Certain Units of Local Government

This Topic Area is to provide funding to units of local government that have authority to adopt building codes for the adoption and implementation of a building energy code presented in Appendix C of this FOA, i.e., a qualifying building energy code.

Topic Area 2: Adoption and Implementation of the Latest Model Energy Codes or Zero Energy Codes with Combinations of Strengthening and Weakening Amendments by States and Certain Units of Local Governments

This Topic Area is to provide funding to States and units of local government that have authority to adopt building codes for the adoption and implementation of a building energy code with combinations of strengthening and weakening amendments that achieves equivalent or greater energy savings as compared to the applicable latest model energy code or zero energy code that is a qualifying building energy code.

Topic Area 3: Adoption and Implementation of Innovative Building Energy Code Approaches by States and Certain Units of Local Government

This Topic Area is to provide funding to States and units of local government that have authority to adopt building codes for the adoption and implementation of certain innovative building codes, including certain building performance standards (BPS) for existing buildings or stretch codes for new and renovated buildings. Codes eligible under this Topic Area must be measurable, verifiable, and enforceable. The subject codes under this Topic Area must achieve equal or greater energy savings as compared to a latest model code that is a qualifying building energy code, or the zero energy code appendices in the 2021 IECC, as applicable.

Table 1 below includes descriptions of each Topic and Subtopic Area.

number in subject line.

Table 1: Descriptions of Topic and Subtopic Areas

Topic Area Name Subtopic Brief Description

1 Adoption and Implementation of Qualifying Building Energy Codes by Certain Units of Local Government

Subtopic A: Units of Local Government – Latest Model Energy Codes Identified as Qualifying Building Energy Codes

Topic Area for units of local government that have authority to adopt building codes to adopt and implement the latest model energy code(s) that have been identified as qualifying building energy codes in the ALRD and are included in Appendix C of this document.

Subtopic B: Units of Local Government - Zero Energy Codes Identified as Qualifying Building Energy Codes

Topic Area for units of local government that have authority to adopt building codes to adopt and implement zero energy code(s) that have been identified as qualifying energy codes in the ALRD and are included in Appendix C of this document.

2 Adoption and Implementation of the Latest Model Energy Codes or Zero Energy Codes with Combinations of Strengthening and Weakening Amendments by States and Certain Units of Local Government

Subtopic A: Units of Local Government Latest Model Code Equivalent with Combinations of Strengthening and Weakening Amendments

Topic Area for units of local government that have the authority to adopt building codes to adopt and implement customized versions of the latest model energy codes, including adoption and implementation of the latest model energy codes that will be amended with combinations of strengthening and weaking amendments. All energy codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant latest model code that is a qualifying building energy code.

Subtopic B: State Latest Model Code Equivalent with Combinations of Strengthening and Weakening Amendments

Topic Area for States to adopt and implement customized versions of the latest model energy codes, including adoption and implementation of the latest model energy codes with combinations of strengthening and weakening amendments. All energy codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant latest model code that is a qualifying building energy code.

number in subject line.

Topic Area Name Subtopic Brief Description

Subtopic C: Units of Local Government Zero Energy Codes with Combinations of Strengthening and Weakening Amendments, Custom Zero Energy Codes, and Stretch Codes

Topic Area for units of local government that have the authority to adopt building codes to adopt and implement zero energy codes with combinations of strengthening and weakening amendments, custom zero codes, or stretch codes. All codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant qualifying zero energy code.

Subtopic D: State Zero Energy Codes with Combinations of Strengthening and Weakening Amendments, Custom Zero Energy Codes, and Stretch Codes

Topic Area for States to adopt and implement zero energy codes with combinations of strengthening and weakening amendments, custom zero codes, or stretch codes. All codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant qualifying zero energy code.

3 Adoption and

Implementation of

Innovative Building

Energy Codes by

States and Certain

Units of Local

Government

Subtopic A:

Innovative Building Energy Codes with Energy Savings Equivalent to Latest Model Energy Codes

Topic Area for States and units of local government that have the authority to adopt and implement innovative building codes. All innovative building energy codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant latest model building energy code.

Subtopic B:

Innovative Building Energy Codes with Energy Savings Equivalent to Zero Energy Codes

Topic Area for States and units of local government that have the authority to adopt and implement innovative energy codes. All innovative building energy codes pursued through this Topic Area must meet the equivalent energy savings requirement when compared to the relevant qualifying zero building energy code.

All work for projects selected under this FOA must be performed in the United States. See Section IV (J)(iii) and Appendix A.

number in subject line.

This Funding Opportunity Announcement may remain open for up to 18 months, with review cycles occurring approximately every 6 months, while funding lasts. The “rolling” nature of this announcement is meant to allow time for effective teams to be developed and strategies identified to successfully meet the goals outlined in the FOA.

In addition, it is a well-known challenge for smaller jurisdictions to find the bandwidth to develop an application for and subsequently administer a federal grant, so there are also simplified pathways provided for local governments to ease the burden of accessing these funds. In response to this challenge, Topic Area 1 provides a simplified pathway for local governments based on specified building energy codes.

It is possible that all funding for Topic Areas 1, 2 or 3 may be expended after the first application/review cycle, in which case all subsequent cycles for the fulfilled Topic Area(s) will not occur and only applications for the remaining Topic Area(s) would be accepted in the subsequent cycle. The planned review periods are outlined in Table 2, below.

Please note that appropriated funding may be expended after the first or second Cohort selections are made. If this is the case, DOE will notify the community via Infrastructure eXCHANGE that subsequent submission periods will be withdrawn.

Table 2: Planned Review Periods for FOA Review Cycles

Cohort Applicant Dates Date Notes

FOA Release December 18, 1 1st Round Concept Papers February 9, 1st Round Full Applications Due

April 30, 2024

2 2nd Round Concept Papers May 31, 2024 5:00 p.m. ET

2nd Round Full Applications Due

September 13, 2024 5:00 p.m.

ET

3 3rd Round of Concept Papers Fall 2024 Pending availability of funding

3rd Round of Full Applications Due

Winter 2024 Pending availability of funding number in subject line.

Understanding “equivalent or greater energy savings” is critical in determining the appropriate Topic and Subtopic Area for an application. IRA Section 50131 states that certain adopted codes must demonstrate “equivalent or greater energy savings” compared to the specified code. IRA Section 50131 specifies four codes:

• Latest Model Code, Residential: a building energy code (or codes) for residential buildings that meets or exceeds the 2021 IECC, or achieves equivalent or greater energy savings.

• Latest Model Code, Commercial: a building energy code (or codes) for commercial buildings that meets or exceeds the ASHRAE Standard 90.1–2019, or achieves equivalent or greater energy savings.

• Zero Energy Code, Residential: a building energy code (or codes) for residential buildings that meets or exceeds the zero energy provisions in the 2021 IECC (Appendix RC) or an equivalent stretch code.

• Zero Energy Code, Commercial: a building energy code (or codes) for commercial buildings that meets or exceeds the zero energy provisions in the 2021 IECC (Appendix CC) or an equivalent stretch code.

Applications for building energy codes other than those specified in Appendix C of this FOA must demonstrate equivalent or greater energy savings relative to the code specified in the Topic and Subtopic Area where it is being submitted. Topic and Subtopic Areas are designed to bundle applications with similar comparisons of “equivalence” to ensure similar standing for all applications throughout the merit review process. For example, a local jurisdiction considering a modified residential code that is more customized than the latest model code amended with provisions specified in Appendix C, but not a zero code, will need to perform the equivalence calculation in Section 4 of the equivalency methodology2 relative to the 2021 IECC Residential code as the IRA-specified code. In this case, the applicant should submit their proposal under Topic Area 2, Subtopic Area A for consideration. For the purposes of this FOA, energy savings equivalence is established in the aggregate, calculating the overall energy savings from the impacted building stock under the proposed building energy code, not at the individual building level.

The equivalence calculator and the equivalence methodology provided in Section IV (D)(vi) are designed to demonstrate the energy savings of the proposed building energy code and to allow for a comparison to the energy savings of the relevant IRA-specified code. The methodology specifies pathways for new construction codes and innovative approaches such as building performance standards and zero energy codes. Applicants should give special consideration to the potential impact that combinations of strengthening and weakening amendments, or pursuit of outcome-based targets will have on the calculation of energy savings. Applicants should align the expected savings with the appropriate Topic and Subtopic Area for submissions under this opportunity.

2 https://infrastructure-exchange.energy.gov/Default.aspx httpss://infrastructure-exchange.energy.gov/Default.aspx number in subject line.

Applications must propose building energy codes or innovative approaches to building energy codes that are measurable, verifiable, and enforceable. While attributes may vary across applications, the proposed building energy code, including a proposed building performance standard, or other code must be measurable in terms of energy savings.

Further, the proposal should result in a code that is verifiable through surveys or field studies and enforceable through administrative procedures vested with the authority of the agency having jurisdiction. Examples of enforcement mechanisms may include permitting, certificates of occupancy, financial penalties, and/or civil suits.

i. Guidance for Topic Selection

Jurisdictions may submit multiple applications under this FOA, but only a single application for each Subtopic Area. Accordingly, applicants should consider the coordination of activities that qualify for similar categories of funds, activities that are complementary or additive to each other, or activities that are not sufficiently distinct to warrant separate projects.

The Topic Areas and corresponding Subtopic Areas in this funding opportunity reflect the desired end-state of the applicant’s code adoption and implementation activities. For example, a jurisdiction seeking to adopt the latest model code or equivalent, but not pursue anything further, should consider Subtopic Areas that reflect equivalence and qualified codes relative to the latest model code. A jurisdiction seeking to adopt a zero energy code, even over multiple code adoption cycles, should consider Subtopic Areas that reflect equivalence and qualified codes relative to the zero energy code.

Using Topic Area 1 as an example: an eligible unit of local government may want to update their residential code to a qualified building energy code that is a net zero code, and also update their commercial code to a latest model code that is a qualified building energy code.

This eligible unit of local government should consider submitting two applications: one to Subtopic B for the residential zero code update (which may take place over multiple code adoption cycles), and a second application to Subtopic A for a single cycle adoption of the commercial latest model code.

Another example considering Topic Areas 2 and 3: an eligible State may plan to adopt a zero energy code for commercial buildings over multiple code adoption cycles and a building performance standard designed to be equivalent to the latest model code using the provided methodology. The State would need to submit two applications:

• The first to Topic Area 2 Subtopic D for a commercial code adoption effort resulting in a zero energy code equivalent adoption and implementation at the conclusion of the award.

• The second to Topic Area 3 Subtopic A for the application proposing the adoption and implementation of a building performance standard equivalent to the commercial latest model code.

Consider an additional example: a Territory is planning to adopt the latest model code for both commercial and residential buildings. First, the Territory, being an eligible entity for number in subject line.

formula funding under the ALRD,3 should consider whether their proposal would put forward a qualifying building energy code under the terms outlined in the ALRD. If so, the Territory should review the ALRD to determine the process for submitting an application under that opportunity (e.g., submitting a letter of intent (LOI)). Otherwise, if the Territory is considering a combination of strengthening and weakening amendments for either or both of their commercial or residential building energy codes, or an entirely custom code, for their proposed project, then the Territory should submit an application containing both the residential and commercial code proposals. Their proposal should include the proposed combinations of strengthening and weakening amendments and the corresponding equivalence evaluation using the provided methodology, and should be submitted to Topic Area 2 Subtopic B.

It may be that a single jurisdiction has multiple applications selected for awards after evaluation through the merit review process. Opportunities for streamlining such selections may be considered in the negotiations with the Selectee.

C. Applications Specifically Not of Interest

The following types of applications will be deemed nonresponsive and will not be reviewed or considered (See Section III (D) of the FOA):

• Applications that fall outside the technical parameters specified in Sections I (A) and I

(B) of the FOA

• Applications from entities that do not have code adoption authority (except as provided in Section III (A)(i))

• Applications that propose activities that fail to meet the statutory requirements of Section 50131 of the Inflation Reduction Act

• Applications that do not meet the “equivalent or greater energy savings” requirement for custom or amended codes or other innovative approaches such as building performance standards

• Applications that propose building energy provisions that are not measurable, verifiable, or enforceable

D. Community Benefits Plan: Job Quality and Equity

To support the goal of building a clean and equitable energy economy, the IRA funded projects are expected to:

(1) support meaningful community and labor engagement;

(2) invest in America’s workforce;

(3) advance diversity, equity, inclusion, and accessibility (DEIA); and

3 https://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and mailto:IRACODES@hq.doe.gov mailto:InfrastructureEXCHANGESupport@hq.doe.gov httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and httpss://www.energy.gov/scep/articles/alrd-assistance-latest-and-zero-building-energy-code-adoption-sec-50131-states-and number in subject line.

(4) contribute to the President’s goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities (the Justice40 Initiative).4,5

To ensure these goals are met, applications must include a Community Benefits Plan that describes how the proposed project would incorporate the four objectives stated above.

Applicants must submit Community and Labor Partnership Documentation from established labor and community-based organizations that demonstrate the applicant’s ability to achieve the above goals as outlined in the Community Benefits Plan. Within the Community Benefits Plan, the applicant is encouraged to provide details on how to ensure the delivery of measurable community and jobs benefits, ideally using negotiated agreements between the applicant and the community, and/or the applicant and labor unions referred to collectively here as “Workforce and Community Agreements.” These include good neighbor agreements, community benefits agreements, community workforce agreements, project labor agreements, and other collective bargaining agreements. See Section IV (D)(xiii). for the Community Benefits Plan content requirements.

E. Authorizing Statutes

The programmatic authorizing statute is Section 50131 of the Inflation Reduction Act (IRA), as codified at 42 U.S.C. 6321 through 6326. Awards made under this announcement will fall under the purview of 2 CFR Part 200 as supplemented by 2 CFR Part 910.

II. Award Information

A. Award Overview

i. Estimated Funding

DOE expects to make a total of approximately $530,000,000 of federal funding available for new awards under this FOA, subject to the availability of appropriated funds. DOE anticipates making approximately 40 - 200 awards under this FOA. DOE may issue one, multiple, or no awards. Individual awards may vary between $1,000,000 and $20,000,000.

4 The Justice40 initiative, established by E.O. 14008, sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities. Reference Memorandum M-23-09 regarding the use of the Climate and Economic Justice Screening Tool (CEJST) for geographic definition of disadvantaged communities: https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf. See https://screeningtool.geoplatform.gov/.

5 DOE’s General Guidance for Justice40 Implementation is available here:

https://www.energy.gov/sites/default/files/2023- 07/DOE%20Justice40%20General%20Guidance%2072523.pdf mailto:IRACODES@hq.doe.gov mailto:InfrastructureEXCHANGESupport@hq.doe.gov httpss://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf httpss://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf httpss://screeningtool.geoplatform.gov/ httpss://www.energy.gov/sites/default/files/2023-07/DOE%20Justice40%20General%20Guidance%2072523.pdf httpss://www.energy.gov/sites/default/files/2023-07/DOE%20Justice40%20General%20Guidance%2072523.pdf number in subject line.

DOE may issue awards in one, multiple, or none of the Topic Areas summarized in Table 3, below.

Table 3: Topic and Subtopic Areas and Anticipated Award Information

Topic Area

Topic Area Title

Subtopic Anticipated Number of

Awards

Estimated Federal Funding per Award

Approximate Total Federal

Funding Available for all Awards

Anticipated Period of

Performance

Adoption and Implementation of Qualifying Building Energy Codes by Certain Units of Local Government

Subtopic A: Units of Local Government – Latest Model Energy Codes Identified as Qualifying Building Energy Codes

Up to 20 Up to $5M Up to $45M Up to 3 years

Subtopic B: Units of Local Government - Zero Energy Codes Identified as Qualifying Building Energy Codes

Up to 20 Up to $5M Up to $45M Up to 9 years

Adoption and Implementation of the Latest Model Energy Codes or Zero Energy Codes with Combinations of Strengthening and Weakening Amendments by States and Certain Units of Local Government

Subtopic A: Units of Local Government Latest Model Code Equivalent with Combinations of Strengthening and Weakening Amendments

Up to 10 Up to $10M

Up to $20M Up to 3 years

Subtopic B: State Latest Model Code Equivalent with Combinations of Strengthening and Weakening Amendments

Up to 10 Up to $10M

Up to $20M Up to 3 years number in subject line.

Topic Area

Topic Area Title

Subtopic Anticipated Number of

Awards

Estimated Federal Funding per Award

Approximate Total Federal

Funding Available for all Awards

Anticipated Period of

Performance

Subtopic C: Units of Local Government Zero Energy Codes with Combinations of Strengthening and Weakening Amendments, Custom Zero Energy Codes, and Stretch Codes

Up to 20 Up to $10M

Up to $100M Up to 9 years

Subtopic D:

State Zero Energy Codes with Combinations of Strengthening and Weakening Amendments, Custom Zero Energy Codes, and Stretch Codes

Up to 20 Up to $10M

Up to $100M Up to 9 years

Adoption and Implementation of Innovative Building Energy Codes by States and Certain Units of Local Government

Subtopic A:

Innovative Building Energy Code Approaches with Energy Savings Equivalent to Latest Model Energy Codes

Up to 10 Up to $10M

Up to $45M

Up to 3 years number in subject line.

Topic Area

Topic Area Title

Subtopic Anticipated Number of

Awards

Estimated Federal Funding per Award

Approximate Total Federal

Funding Available for all Awards

Anticipated Period of

Performance

Subtopic B:

Innovative Building Energy Code Approaches with Energy Savings Equivalent to Zero Energy Codes

Up to 100 Up to $20M

Up to $420M

Up to 9 years

Total $530M

DOE may establish more than one budget period for each award and fund only the initial budget period(s). Funding for all budget periods, including the initial budget period, is not guaranteed.

ii. Period of Performance

Awards will run a maximum of nine (9) years in length and will consist of one or more budget periods ending no later than September 30, 2034. DOE will evaluate project performance and project schedule adherence, and project continuation will be contingent upon several elements, including satisfactory performance and DOE’s Go/No-Go decisions. For a complete list and more information on the Go/No-Go review, see Section VI (B)(xii).

iii. New Applications Only

DOE will accept only new applications under this FOA. DOE will not consider applications for renewals of existing DOE-funded awards through this FOA.

B. DOE Funding Agreements

Through grants and other similar agreements, DOE provides financial and other support to projects that have the potential to realize the FOA objectives. DOE does not use such agreements to acquire property or services for the direct benefit or use of the U.S.

government.

number in subject line.

i. Funding Agreements with Federally Funded Research and Development Center (FFRDCs)6

In most cases, FFRDCs are funded independently of the remainder of the project team. The FFRDC then executes an agreement with any non-FFRDC project team members to arrange work structure, project execution, and any other matters. Regardless of these arrangements, the entity that applied as the prime recipient for the project will remain the prime recipient for the project. See Section III (E)(i) for additional information.

ii. Grants

DOE will be utilizing grants to provide financial support to prime recipients for this FOA.

III. Eligibility Information

To be considered for evaluation, an applicant’s submission must meet the criteria set forth below. If the application does not meet these eligibility requirements, it will be considered ineligible and removed from further evaluation.

A. Eligible Applicants

In accordance with the Section 50131 of the IRA eligible Grantees are defined as States and units of local government that have the authority to adopt building codes. As previously noted, for the purpose of this FOA, DOE is defining State as a State, the District of Columbia, Puerto Rico, or any territory or possession of the United States.

i. Delegation of Authority

In some cases, it is understood that the agency with the authority to adopt building codes may not be the same entity with the capacity or ability to implement or enforce those codes, or otherwise enter into a grant agreement with DOE. In these scenarios, the agency with the authority to adopt building codes may provide formal documentation of delegation of authority to another agency to proceed as the prime applicant on the jurisdiction’s submission. It will be incumbent on the eligible entity and designated applicant to ensure the validity of the delegation under the relevant State and/or local authorities, and to specify which specific project activities will be delegated. Entities that are not agencies within the applicant jurisdiction (e.g.: non-governmental organizations (NGOs), industry associations, etc.) are not eligible to be delegated as the prime applicant.

6 FFRDCs are public-private partnerships that conduct research for the U.S. government. A listing of FFRDCs can be found at http://www.nsf.gov/statistics/ffrdclist/.

https://www.nsf.gov/statistics/ffrdclist/ number in subject line.

ii. Domestic Entities

The proposed prime recipient and subrecipient(s) must be domestic entities. The prime recipient must be a State, or unit of local government that has the authority to adopt building codes, unless delegated as outlined in Section III (A)(i), above. The following types of domestic entities are eligible to participate as a subrecipient of this FOA:

1) Institutions of higher education

2) For-profit entities

3) Nonprofit entities

4) State and local governmental entities and Indian Tribes

5) Code and standards developers

6) Associations of builders and design and construction professionals

7) Local and utility energy efficiency program implementers

To qualify as a domestic entity, the entity must be organized, chartered, or incorporated (or otherwise formed) under the laws of a particular state or territory of the United States; have majority domestic ownership and control; and have a physical place of business in the United States.

DOE/NNSA FFRDCs are not eligible to apply for funding under this announcement as a prime recipient or subrecipient.

Non-DOE/NNSA FFRDCs are eligible to participate as a subrecipient but are not eligible to apply as a prime recipient.

Entities banned from doing business with the U.S. government, such as entities debarred, suspended, or otherwise excluded from or ineligible for participating in federal programs, are not eligible to apply for funding.

Nonprofit organizations described in Section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995, are not eligible to apply for funding.

iii. Foreign Entities

In limited circumstances, DOE may approve a waiver to allow a foreign entity to participate as a subrecipient. If the applicant seeks to include a foreign entity as a subrecipient, the applicant must submit a separate explicit written waiver request in the Full Application for each proposed foreign subrecipient.

Appendix A lists the information that must be included in a foreign entity waiver request. The applicant does not have the right to appeal DOE’s decision concerning a waiver request.

B. Cost Sharing

Cost sharing is not required under this FOA.

number in subject line.

C. Compliance Criteria

All applicant submissions must:

• Comply with the applicable content and form requirements listed in Section IV.