DE-FOA-0003428_Energy_Improvements_in_Rural_or_Remote_Areas_–_Fiscal_Year_2025_Release.pdf

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This document is a Notice of Funding Opportunity (NOFO) for the "Energy Improvements in Rural or Remote Areas - Fiscal Year 2025 Release" federal grant program. The program, authorized under the Bipartisan Infrastructure Law, provides up to $400 million in funding for 20-50 cooperative agreement awards ranging from $2 million to $50 million. The goals are to deliver benefits to rural/remote communities by funding replicable clean energy projects that lower costs, improve access and resilience, increase economic opportunity, and reduce environmental impact. Eligible applicants include Indian Tribes, state/local governments, non-profits, and for-profit organizations. Projects must support at least one of six eligible activities, including improving energy system cost-effectiveness, siting/upgrading transmission/distribution, reducing emissions, modernizing generation, developing microgrids, and increasing energy efficiency. Concept papers are due February 27, 2025, and full applications are due August 28, 2025, with anticipated award announcements in Spring 2026. The program is administered by the Department of Energy's Office of Clean Energy Demonstrations under Assistance Listing 81.255 - Clean Energy Demonstrations.

Energy Improvements in Rural or Remote Areas – Fiscal Year 2025 Release

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1. REVIEW 2. GET READY 3. SUBMIT 4. SELECTION 5. REQUIREMENTS 6. CONTACTS

Last UpdatedSeptember

U.S. Department of Energy Office of Clean Energy Demonstrations

Bipartisan Infrastructure Law

ENERGY IMPROVEMENTS

IN RURAL OR REMOTE

AREAS – FISCAL YEAR

2025 RELEASE

Funding Opportunity Number: DE-FOA-0003428 Concept papers due: February 27, 2025, 5:00pm ET Applications due: August 28, 2025, 5:00pm ET

Questions about this funding opportunity? Email ERA2024@hq.doe.gov

Problems with OCED eXCHANGE? Email OCED-ExchangeSupport@hq.doe.gov and include the funding opportunity title and number in subject line.

mailto:ERA2024@hq.doe.gov mailto:OCED-ExchangeSupport@hq.doe.gov

Step 1: Review the Funding Opportunity Basic Information

Eligibility

Program Description

Step 2: Get Ready to Apply Application Contents and Format

Step 3: Submit Your Application Submission Requirements and Deadlines

Step 4: Learn About Review and Selection Application Review Information

Risk Review

Award Notices

Step 5: Learn about Post-Selection and Post-Award Requirements Post-Selection Information Requests and Submissions

Post-Award Requirements and Administration

Terms and Conditions

Reporting

Step 6: Contacts and Support Agency Contacts

Helpful Websites

Before you begin If you believe you are a good candidate for this funding opportunity, secure your SAM.gov and other registrations now. If you are already registered, make sure your registration is active and up to date.

All registrations are free.

See Step 3: Submit Your Application

SAM.gov registration (this can take several weeks) You must have an active account with SAM.gov. This includes having a Unique Entity Identifier (UEI).

OCED eXCHANGE (this can take 48-72 hours) You must register with OCED eXCHANGE. A Login.gov or ID.me account is necessary to register.

FedConnect (this can take 48-72 hours) You must register with FedConnect. Registering with FedConnect® is fast and easy. Only individuals who are designated as Points of Contact in SAM.gov can create a new company account.

Grants.gov registration (this can take several days) You must have an active Grants.gov registration. Doing so requires a Login.gov registration as well.

Apply by Concept papers are due on February 27, 2025, at 5:00 p.m. Eastern Time.

Applications are due on August 28, 2025, at 5:00 p.m. Eastern Time.

https://sam.gov/content/home https://login.gov/ https://www.id.me/ https://www.fedconnect.net/FedConnect/Default.htm https://www.grants.gov/forms/forms-repository/sf-424-family https://login.gov/

STEP 1:

REVIEW THE FUNDING

OPPORTUNITY

IN THIS STEP

Basic Information

Eligibility

Program Description

Basic Information

Funding detail Announcement Type: Initial

Expected total available funding: $400 million1

Expected number and type of awards: 20–50 awards as Cooperative Agreements

Expected dollar amount of individual awards: $2 million–$50 million Federal share

Expected award project period: Project periods depend on the scope of the projects and will not exceed 7 years

Statutory Authority The Infrastructure Investment and Jobs Act (IIJA, Public Law 117- 58), also known as the Bipartisan Infrastructure Law, authorized the Office of Clean Energy Demonstrations.2 This Notice of Funding Opportunity (NOFO) is supported under the Energy Improvements in Rural or Remote Areas program.3

Agency contact information Office of Clean Energy Demonstrations U.S. Department of Energy 1000 Independence Ave SW Washington, D.C. 20585 Email: OCED@hq.doe.gov Phone: 202-586-OCED For questions relating to this specific solicitation, please use ERA2024@hq.doe.gov.

1 Depending on the number and quality of applications, DOE may choose to not award the full NOFO funding amount.

2 IIJA Section 41201 (42 U.S.C. § 18861).

3 IIJA Section 40103 (42 U.S.C. § 18712(c)).

KEY FACTS

Funding Opportunity Title:

Energy Improvements in Rural or Remote Areas – Fiscal Year 2025 Release

Funding Opportunity Number:

DE-FOA-0003428

Assistance Listing:

81.255

KEY DATES

Concept Paper Deadline:

February 27, 2025

Application Deadline:

August 28, 2025

Anticipated Selection Announcement:

Spring 2026

NOTE: The 2024 Revisions to 2 CFR 200 will be in effect for awards issued under this NOFO.

mailto:OCED@hq.doe.gov mailto:ERA2024@hq.doe.gov https://www.federalregister.gov/documents/2024/04/22/2024-07496/guidance-for-federal-financial-assistance

Executive summary Rural and remote areas often have higher energy costs and burden,4 less resilient energy systems, and fewer alternatives for accessing clean energy compared with their urban counterparts. Furthermore, small communities do not always have the available time, money, or other resources to pursue clean energy options.

This Energy Improvements in Rural or Remote Areas (ERA) funding opportunity provides support for rural and remote communities to build clean energy projects that benefit their communities.

The goals of the program are to:

1. Deliver measurable and sustained benefits to people who live in rural or remote areas by funding replicable clean energy projects that lower energy costs, improve energy access and resilience, increase economic opportunity, and/or reduce environmental harm.

2. Demonstrate effective rural or remote energy system approaches using climate-resilient technologies, business structures that promote economic resilience, accessible and appropriate financing mechanisms, and/or best practices in community leadership and engagement, and workforce development.

3. Build clean energy knowledge, experience, capacity, and self-reliance in rural and remote parts of America.

This program serves communities of 10,000 people or fewer.5 Applicants must propose projects that support at least one of these eligible activities:

A. Improving overall cost-effectiveness of energy generation, transmission, or distribution systems;

B. Siting or upgrading transmission and distribution lines;

C. Reducing greenhouse gas emissions from energy generation in rural or remote areas;

D. Providing or modernizing electric generation facilities;

E. Developing microgrids; and F. Increasing energy efficiency.

Applications may include any technology that meets these eligible activities, as long as those technologies are commercially available (see Technology and System Requirements for details on “commercially available”).

The following entities are eligible to apply: (1) Indian Tribes; (2) state and local governmental entities; (3) nonprofit organizations; and (4) for-profit organizations. See the Applicant Eligibility Guidance on the Apply for Funding Opportunities page for details.

Applicants must choose one of the four topic areas for their project’s application. See Table 1 and pgs. 15-19 for more details on the topic areas.

4 Based on data from the Low-Income Energy Affordability Data tool, https://www.energy.gov/scep/slsc/lead-tool. In 2023, counties with <20,000 people had an energy burden of 4%, vs. 3.12% for counties with ≥20,000 people.

5 See the Eligibility section for further details on what this program considers to be a “rural or remote community.”

https://www.energy.gov/oced/apply-funding-opportunities#eligibility https://www.energy.gov/oced/apply-funding-opportunities#eligibility https://www.energy.gov/scep/slsc/lead-tool

Table 1. Program overview. Details to be determined through merit reviews and project negotiations.

Expected Total Available Funding $400M (million)

Project Funding $2M–$50M contribution from DOE; 5–50% minimum required non-Federal cost share (i.e., from applicant). Amount depends on applicant type and topic area. See Cost Sharing and Table 2 for details on cost share.

Expected Project Count 20–50 projects

Requirements This program serves rural and remote communities with 10,000 people or fewer.

See the Eligibility section for details.

Topic Areas

1. Open category Expected award size per project: $10M–$50M Total expected award amount for topic area: $150M Cost share from applicant: 50%, or 20% for Indian Tribes, state and local governments, nonprofit organizations, and institutions of higher education

2. Dual use and co-location Expected award size per project: $10M–$50M Total expected award amount for topic area: $175M Cost share from applicant: 50%, or 20% for Indian Tribes, state and local governments, nonprofit organizations, and institutions of higher education

3. Smaller-scale community-centered Expected award size per project: $2M–$10M Total expected award amount for topic area: $50M Cost share from applicant: 20%, or 5% for Indian Tribes, state and local governments, nonprofit organizations, and institutions of higher education

4. Isolated microgrids & unelectrified buildings Expected award size per project: $2M–$10M Total expected award amount for topic area: $25M Cost share from applicant: 20%, or 5% for Indian Tribes, state and local governments, nonprofit organizations, and institutions of higher education

Priorities

This funding opportunity prioritizes (see Funding Priorities for details):

• Various types of communities that may experience additional historical and current burdens; and

• Teams that credibly represent the needs and priorities of project communities.

Eligibility Section 40103(c) of the Bipartisan Infrastructure Law defines rural or remote areas as a “city, town, or unincorporated area that has a population of not more than 10,000 inhabitants.” Applicants must identify at least one area in the United States (including U.S. territories) with a population of not more than 10,000 (using the 2020 Census Bureau figures) that will benefit from the proposal. The identified area must be either: (a) a city, town, or other incorporated municipality, or (b) a Census Designated Place (CDP), Census County Division (CCD), or similarly discrete and identifiable community that is not located within an incorporated municipality.

For purposes of this funding opportunity, zip code tabulation areas (five digit) (ZCTA5), census tracts, and other similar census geographic entities are not discrete and identifiable communities. Applications that do not satisfy this requirement will be considered ineligible and removed from further evaluation. See the Applicant Eligibility Guidance linked under the Eligibility section for information on how to use the U.S.

Census Bureau Data to determine a community’s population.

Projects ideally should be sited within the rural or remote area they are designed to benefit. Projects proposed to be built outside of a rural or remote area may be considered for funding but must clearly define the rural or remote area(s) of not more than 10,000 inhabitants receiving the benefits. All areas identified as directly benefitting from the proposed project must meet the definition of rural or remote area.

All projects must be built within the United States.

DOE will not make eligibility determinations for potential applicants until after the application deadline.

Eligible applicants The following types of entities6 are eligible to apply for this funding—either as a recipient or subrecipient:

1. Indian Tribes7

2. State and local governmental entities8

3. Nonprofit organizations

4. For-profit organizations

5. Tribal organizations

6. Rural electric cooperatives

6 See the Applicant Eligibility Guidance on the Apply for Funding Opportunities page for definitions and descriptions of entities.

7 For purposes of this funding opportunity, “Indian Tribe” (per section 4 of the Indian Self Determination and Education Assistance Act (25 U.S.C. § 5304)), means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) [43 U.S.C. § 1601, et seq.], which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. Federally Recognized Tribes and Tribal entities, whether or not they have land, are also considered disadvantaged (or Justice40) communities for the purposes of the Justice40 Initiative as discussed in this NOFO per the Addendum to the Interim Implementation Guidance for the Justice40 Initiative, M-21-28, on using the Climate and Economic Justice Screening Tool (M-23-09).

8 State includes the Commonwealth of Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

7. Farming associations and cooperatives

8. Labor unions

9. Institutions of higher education

10. Incorporated consortia

11. Unincorporated consortia https://www.energy.gov/oced/apply-funding-opportunities#eligibility https://www.energy.gov/oced/apply-funding-opportunities#eligibility https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf

Applicants and any subrecipient(s) must be domestic entities. (See the next section on Foreign Entities for details on limited exceptions.) 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 or under the laws of the United States; have majority domestic ownership and control; and have a physical place of business in the United States, or otherwise qualify as an Indian Tribe or tribal organization.

In addition, Department of Energy (DOE) Federally Funded Research and Development Centers (FFRDCs) are eligible to apply for funding as a subrecipient but are not eligible to apply as a recipient. The funding for the FFRDC will flow through the recipient. Non-DOE FFRDCs are eligible to participate as a subrecipient, subject to approval of their sponsor agency, but are not eligible to apply as a recipient. Notwithstanding the above, Federal agencies, instrumentalities, and corporations (other than DOE) are eligible to participate as a subrecipient but are not eligible to apply as a recipient.

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

Entities identified on a Department of Homeland Security, Binding Operational Directives as an entity publicly banned from doing business with the Unites States government are not eligible. See Cybersecurity Directives for more information.

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. Nonprofit organizations described in Section 501(c)5 of the Internal Revenue Code are eligible to apply for funding. See the Applicant Eligibility Guidance located on the Apply for Funding Opportunities page for more information.

Other Eligibility Criteria

Foreign Entities In general, foreign entities are not eligible to apply as either a recipient or subrecipient. In limited circumstances, DOE may allow a foreign entity to participate as a recipient or subrecipient. A foreign entity may apply to this funding opportunity, but the application must be accompanied by a disclosure of the foreign entity’s participation. Likewise, if the applicant seeks to include a foreign entity as a subrecipient, the applicant must submit a separate disclosure in the application for each proposed foreign subrecipient.

Foreign entity disclosure information can be found in the Foreign Entity Participation and Performance of Foreign Work in the United States Guidance which is located on the What Other Information May be Requested? page. DOE’s decision concerning foreign entity participation or foreign entity work is not appealable.

https://www.cisa.gov/news-events/directives https://www.cisa.gov/news-events/directives https://www.energy.gov/oced/apply-funding-opportunities#eligibility https://www.energy.gov/oced/award-negotiations#request https://www.energy.gov/oced/award-negotiations#request

Cost sharing Applicants must provide a certain percentage of the total project costs to meet the cost share requirement.

The amount varies by topic area and type of applicant. See the Topic Areas section for details on the cost share amount. Applicants who believe their project qualifies for the reduced cost share must be able to provide verification that they are an entity identified as eligible for the reduced cost share.

Cost share may be provided in the form of cash or cash equivalents, or in-kind contributions.9 The cost share must come from non-Federal sources unless otherwise allowed by law. Cost share may come from project recipients, subrecipients, state or local governments, or other third-party financing. Generally, realized tax credits may be used as cost share.10 In general, deferred or avoided costs may not be used as cost share.

Applicants may not leverage Federal financing, such as DOE Loan Guarantees, to provide the required cost share or to otherwise support the same scope that is proposed under the Energy Improvements in Rural or Remote Areas program.

Program income (see details in Program Income section) should not be included as cost share in the applicant’s budget. Non-Federal cost share can include Tennessee Valley Authority power sales revenue, which is specifically allowed under the Energy Policy Act of 2005. See 42 U.S.C § 16352(c) (Section 988 of Energy Policy Act of 2005) and 2 CFR 910.130(d)(2)(v).

To assist applicants in calculating proper cost share amounts, DOE has an information sheet and sample cost share calculation in the Cost Sharing Guidance located on the Preparing Your Budget page.

9 Applicants may meet the cost share requirement through staff time, municipal or tribal budgets, philanthropic funds, or other contributions from a third-party entity to support project implementation or increase impact. See here for an explanation of cost share:

https://www.energy.gov/oced/apply-funding-opportunities#budget 10 Tax credits authorized by the Inflation Reduction Act of 2022 (P.L. 117-169) are considered a non-Federal source and are not a Federal award for purposes of cost sharing.

https://www.energy.gov/oced/apply-funding-opportunities#budget

Program Description

Purpose The Bipartisan Infrastructure Law authorizes DOE to invest $1 billion in energy improvements in rural or remote areas. Rural and remote areas often have higher energy costs and burden,11 less resilient energy systems, and fewer alternatives for accessing clean energy compared with their urban counterparts.

Furthermore, small communities do not always have the available time, money, or other resources to pursue clean energy options.

This funding opportunity provides support for rural and remote communities to build clean energy projects that benefit their communities. Benefits could include cleaner, more resilient, more reliable, and/or more affordable local energy sources for rural and remote communities. These projects could also increase local energy independence, tax revenue, economic development and diversification, and local jobs, and reduce environmental and health burdens.

This program aims to increase communities’ capacity to plan, build, and operate clean energy systems, e.g., by developing available technical expertise locally and with partners, and/or increasing community engagement with those projects. We (i.e., the Office of Clean Energy Demonstrations, unless noted otherwise), also expect that this opportunity will enable projects and people to demonstrate inspiring and practical paths to clean energy so an even broader range and number of rural and remote communities can benefit from clean energy.

Funding will support materials, equipment, time, labor, and other resources to build clean energy projects in rural or remote communities and other allowable costs arising from activities as proposed (e.g., collaboration, outreach, and engagement with stakeholders and tribes, or workforce development programs).

This program serves communities of 10,000 people or fewer.12

This funding opportunity builds on previous rounds of this Energy Improvements in Rural or Remote Areas program, which include:

• The Energizing Rural Communities Prize (67 winners for phase 1 across 32 states and territories, announced July 2023; 33 of those teams won phase 2, announced in September 2024)13

• A funding opportunity announcement (17 selected projects across 20 states, for $366M total, announced February 2024)14

• A grant opportunity (19 selected projects across 12 states, for $78M total, announced April 2024)15

11 Based on data from the Low-Income Energy Affordability Data tool, https://www.energy.gov/scep/slsc/lead-tool. In 2023, counties with <20,000 people had an energy burden of 4%, vs. 3.12% for counties with ≥20,000 people.

12 See the Eligibility section for details of this program’s definition of rural or remote communities.

13 See prize winners here: https://americanmadechallenges.org/challenges/rural-energy/results and https://americanmadechallenges.org/challenges/rural-energy/results.

14 See selection announcement here: https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-selections-award-negotiations.

15 See selection announcement here: https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-grant-selections-award-negotiations.

https://www.energy.gov/scep/slsc/lead-tool https://americanmadechallenges.org/challenges/rural-energy/results https://americanmadechallenges.org/challenges/rural-energy/results.

https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-selections-award-negotiations https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-grant-selections-award-negotiations https://www.energy.gov/oced/energy-improvements-rural-or-remote-areas-grant-selections-award-negotiations

Barriers to adoption highlighted in this funding opportunity This funding opportunity focuses on a few of the barriers to adoption, many of which are non-technical, that rural and remote communities face when building clean energy projects. Tending to these barriers can improve overall project success and will be an important part of any project we fund through this opportunity.

We also aim to support projects and teams that will partner with DOE, the National Laboratories, other rural and remote communities, and other parties to develop, share, and help apply the lessons learned from the funded project to other communities working to deploy clean energy infrastructure in rural and remote communities across the country.

The Department of Energy uses the “Adoption Readiness Level” framework16 to describe these non-technical barriers. Specifically, we seek projects that demonstrate how to address at least one of these items:

• Community perception: Members of communities where clean energy projects are proposed frequently raise concerns about conflict with other forms of land and water use, economic development opportunities, and changes to community character. Proponents of clean energy projects can work with community members to choose appropriate technologies, locations, and ownership structures that help build community support for the project and ultimately generate more positive perceptions of and experience with clean energy infrastructure. Including community members and local labor in decision-making; using community ownership or equity models; building effective partnerships; and working with local, trusted messengers for communication are a few potential approaches for addressing community perception.

• Permitting & siting: Rural and remote communities interested in deploying clean energy infrastructure are grappling with new permitting challenges. These challenges can include zoning ordinances that ban or restrict project development, and policies that limit where clean energy can

go. Applicants can work with communities and government agencies, build local experience on these topics, coordinate projects with plans that consider ecosystem-wide impacts, or other approaches to overcome these siting challenges.17

• Downstream value chain: Ensuring that a clean energy project provides direct benefits such as reduced energy costs, increased clean energy reliability and access, improved environmental quality, or increased economic opportunities to the people who pay the financial, environmental, and social costs of that project can help make it more successful.

Applicants may describe other adoption barriers in their community and how their project plans to address those barriers.

16 https://www.energy.gov/technologytransitions/adoption-readiness-levels-arl-complement-trl 17 See here for more information on renewable energy siting: https://www.energy.gov/eere/siting-large-scale-renewable-energy-projects https://www.energy.gov/technologytransitions/adoption-readiness-levels-arl-complement-trl https://www.energy.gov/eere/siting-large-scale-renewable-energy-projects

Program goals and objectives The overall goals of this program are to:

1. Deliver measurable and sustained benefits to people who live in rural or remote areas by funding replicable clean energy projects that lower energy costs, improve energy access and resilience, increase economic opportunity, and/or reduce environmental harm.

2. Demonstrate effective rural or remote energy system approaches using climate-resilient technologies, business structures that promote economic resilience, accessible and appropriate financing mechanisms, and/or best practices in community leadership and engagement, and workforce development.

3. Build clean energy knowledge, experience, capacity, and self-reliance in rural and remote parts of America.

Award contribution to goals and objectives In order to achieve the program’s goals and objectives, we seek to support projects and teams that will:

• Build projects that will lower local energy costs; reduce outages for part or all of the community;

and reduce greenhouse gases and other pollution.

• Provide data, experiences, and lessons learned about financial costs and impacts; system performance; overall process; and other aspects of planning and developing clean energy systems that can be analyzed by and shared with DOE, the National Laboratories, peer communities, and various interested stakeholders to inform clean energy adoption in rural and remote communities across the country.

Funding priorities This funding opportunity prioritizes the following (definitions are described in the footnotes below):

• Communities and populations with at least one of these characteristics (referred to as “priority communities and populations” in this funding opportunity):

o Disadvantaged communities as defined by the Justice40 Initiative18 and identified in the Climate and Economic Justice Screening Tool;19 o Energy communities as defined by the Inflation Reduction Act20 or communities that are likely to become energy communities in the near future;

18 The Justice40 Initiative, established by Executive Order 14008, sets a goal that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities. Consistent with Justice40 guidance, DOE recognizes disadvantaged communities as the census tracts defined and identified as disadvantaged by the White House Council on Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST), located at https://screeningtool.geoplatform.gov/, as well as all Federally Recognized Tribes (whether or not they have land). See https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf.

19 The Climate and Economic Justice Screening Tool is located here: https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 20 Energy communities are defined here: https://energycommunities.gov/energy-community-tax-credit-bonus/ https://screeningtool.geoplatform.gov/ https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 https://energycommunities.gov/energy-community-tax-credit-bonus/ o Low-income communities and populations;21 o Communities or populations, including workers, that have been underrepresented (e.g., have faced barriers, underinvestment, lack of opportunity);

o High energy burden communities and populations;22 and o Frontline communities and populations, i.e., those hit first and worst by climate change.23

• Teams that include members who are:

o Highly familiar with local community priorities and dynamics;

o Members of (or who represent) priority communities or populations (as referenced above);

o Part of labor unions or other local workforce development organizations;

o Credible with and trusted by community members;

o Residents of proposed host community(ies);

o Experienced in project development with proposed technologies in similar geographic and cultural contexts; and o Capable of efficiently and effectively administering government funding.

• Projects that demonstrate learnings which are applicable to other rural or remote communities across the United States and territories.

Technology and System Requirements:

Applicants must propose projects that support at least one of these eligible activities:

A. Improving overall cost-effectiveness of energy generation, transmission, or distribution systems;

B. Siting or upgrading transmission and distribution lines;

C. Reducing greenhouse gas emissions from energy generation in rural or remote areas;

D. Providing or modernizing electric generation facilities;

E. Developing microgrids; and F. Increasing energy efficiency.

Applications may include any technology that meets these eligible activities, as long as those technologies are commercially available (see next paragraph).

21 Low income as defined in the Climate and Economic Justice Screening Tool: https://screeningtool.geoplatform.gov/en/methodology#low-income 22 High energy burden as defined in the Climate and Economic Justice Screening Tool:

https://screeningtool.geoplatform.gov/en/methodology#energy-burden 23 Frontline communities are defined here as those communities who are the most vulnerable to and will be the most adversely affected by climate change and inequitable actions because of systemic and historical socioeconomic disparities, environmental injustice, or other forms of injustice. See:

https://cpo.noaa.gov/climate-program-office-cpo-climate-adaptation-partnerships-program-fy2024/ https://screeningtool.geoplatform.gov/en/methodology#low-income https://screeningtool.geoplatform.gov/en/methodology#energy-burden https://cpo.noaa.gov/climate-program-office-cpo-climate-adaptation-partnerships-program-fy2024/

For the purposes of this funding opportunity, commercially available technology is defined as a product that has been offered for sale, lease, or license to the public. Applicants can establish that the technology is commercially available by showing the product can be warrantied, can be purchased from a commercial vendor for the intended purpose, or some other justification the applicant chooses. The technology must be considered Technology Readiness Level (TRL)24 8–9 (the highest two levels) as defined by DOE before construction begins.

Topic Areas:

This funding opportunity includes the following topic areas. Each application you submit must be for a unique project, and each application must be for a specific topic area. The amount we expect to award per topic area is approximate.

For all topic areas, we welcome project aggregators, i.e., entities that identify and propose several projects together in one application. The project aggregator approach could be used to reduce overall project costs and/or to include communities that may not have capacity to apply for this funding on their own.

Table 2. Topic area summary.

Topic Area Award Size per Project

Total Expected Award Amount for Topic Area

Cost Share from Applicant

Cost Share from Applicant: Eligible for Lower Amount25

1 Open category $10M–$50M $150M 50% 20%

2 Dual use and co-location $10M–$50M $175M 50% 20%

3 Smaller-scale community-centered $2M–$10M $50M 20% 5%

4 Isolated microgrids & unelectrified buildings $2M–$10M $25M 20% 5%

24 https://www.directives.doe.gov/directives-documents/400-series/0413.3-EGuide-04/@@images/file 25 For all topic areas, Indian Tribe, state and local government, institution of higher education, and nonprofit primary applicants are eligible for the lower cost share amount.

https://www.directives.doe.gov/directives-documents/400-series/0413.3-EGuide-04/@@images/file

Topic Area 1: Open Category Purpose Offer a path to funding rural or remote clean energy infrastructure for many different project types, demonstrating approaches to addressing one or more relevant adoption barriers. (See “Barriers to adoption highlighted in this funding opportunity” for details.)

Eligible technologies and activities Applicants may propose any project type that best serves the community’s need and that reduces environmental impacts, within the program’s six eligible activities. (See “Technology and System Requirements.”)

Priority technologies and project types This topic area prioritizes the following technologies or project types:

Solar, battery energy storage systems, wind, water power (marine energy and hydropower), geothermal (heating and cooling or power generation), biomass/biofuels, microgrids,26 distribution, converting fossil fuel–powered equipment to electric, and repowering existing renewable energy systems.

Example projects These examples of projects or components of projects offer some ideas for potential applications. Keep in mind that this list is not exhaustive, and that some examples could be relevant for more than one topic area.

Also consider that projects should align with community priorities.

• Installation of microgrids to provide power regulation or backup electricity to the grid.

• Siting or upgrading less than 30 miles of subtransmission or distribution lines (<69kV), grid stability and resilience with substation improvements, or other electrical infrastructure improvements (hardware or software).

• Use of biogas from agricultural waste, either from biogas capturing or biogas generation through anaerobic digestion, to fuel onsite equipment and/or for pipeline injection.

• Replacement of a non-clean backup energy generation system, such as a diesel generator, with a clean energy generation backup system and/or energy storage system, at a water treatment plant or pump station, or other critical facility.

• Replacement of fossil fuel–powered heating with heat pumps in community buildings or in a residential neighborhood.

• Upgrades to distribution systems to reduce outages and improve resilience.

• Installation of a geothermal heating and cooling system, including geothermal heat pumps, as part of a networked, community-scale geothermal system.

26 A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can operate in either grid-connected or in island mode, including entirely off-grid applications. See https://www.energy.gov/sites/default/files/2024-02/46060_DOE_GDO_Microgrid_Overview_Fact_Sheet_RELEASE_508.pdf.

https://www.energy.gov/sites/default/files/2024-02/46060_DOE_GDO_Microgrid_Overview_Fact_Sheet_RELEASE_508.pdf

Topic Area 2: Dual use and co-location Purpose Provide funding for clean energy demonstration projects in rural and remote communities that either:

• Allow for using land or water for both energy supply and other activities; or

• Are co-located with other activities and result in additional benefits beyond energy supply and reduced pollution.

Demonstrations could help to:

• Address potential conflicts between clean energy and other land and water uses in rural or remote areas;

• Maximize tangible, measurable co-benefits of clean energy projects beyond supplying energy and reducing pollution—including but not limited to economic, workforce, health, social, cultural, and environmental benefits; and/or

• Increase equitable access to clean energy through new business models and financing structures.

Eligible project types Applicants may propose projects that provide co-benefits to communities beyond supplying energy and reducing pollution, e.g., reducing land use conflicts, conserving water, diversifying incomes, and/or enhancing partnerships.

For agrivoltaics projects, dual use is defined as agricultural production, such as crop or livestock production, underneath or adjacent to solar panels (i.e., not solar on barn rooftops).

Example projects These examples of projects or components of projects offer some ideas for potential applications. Keep in mind that this list is not exhaustive, and that some examples could be relevant for more than one topic area.

Also consider that projects should align with community priorities.

• Deployment of small hydropower in existing conduits to generate recurring revenue that enables reinvestment in other community infrastructure.

• Innovative siting of solar panels, such as on agricultural land (agrivoltaics) or over canals, to reduce local siting constraints, preserve undisturbed land where possible, and enable new ownership structures.

• Distributed wind for farmers or farm groups.

• Conduit hydro in irrigation systems.

• Community geothermal heating and cooling systems.

• Use of business structures that promote economic and electric system resilience, accessible and appropriate financing mechanisms, and/or best practices in community leadership, community ownership, capacity building, and engagement with rural and remote farmers, small businesses, communities, and electric utilities.

Topic Area 3: Smaller-scale community-centered Purpose Fund smaller-scale clean energy projects that are initiated, driven, and/or broadly supported by residents of the host community(ies).

• Projects should increase long-term local capacity for future clean energy projects in the applying community and/or in nearby or peer communities. This could include increasing the availability of technical expertise to plan and develop projects or improving community perception.

• We encourage applicants to collaborate with relevant partners, particularly tribal governments and community-based organizations that are familiar with the local community, and/or entities (e.g., nonprofits or extension schools) that have experience with developing renewable energy projects in similar areas.

Eligible technologies and activities Applicants may propose any project type that best serves the community’s needs and that reduces environmental impacts, within the program’s six eligible activities. (See “Technology and System Requirements.”)

Priority technologies and project types This topic area prioritizes the following technologies or project types (the same as for topic area 1):

Solar, battery energy storage systems, wind, water power (marine energy and hydropower), geothermal (heating and cooling or power generation), biomass/biofuels, microgrids,27 distribution, converting fossil fuel–powered equipment to electric, and repowering existing renewable energy infrastructure.

Example projects These examples of projects or components of projects offer some ideas for potential applications. Keep in mind that this list is not exhaustive, and that some examples could be relevant for more than one topic area.

Also consider that projects should align with community priorities.

• Installation of a community-owned solar and battery project to reduce electricity cost and increase energy resilience.

• Installation of a distributed wind, solar, and battery storage microgrid system to reduce electricity costs and increase energy resilience.

• Installation of standalone microgrids in community-serving locations to ensure continuation of services during natural disasters.

27 See footnote 26 for a description of microgrids.

Topic Area 4: Isolated microgrids and unelectrified buildings Purpose Build clean energy projects for either:

• Isolated microgrids28 (often located in ultra-remote areas and served primarily by diesel generators);

or

• Unelectrified homes or community buildings not currently served by an electrical grid.

Projects should demonstrate approaches to addressing one or more relevant adoption barriers. (See “Barriers to adoption highlighted in this funding opportunity” for details.)

Eligible technologies and activities Applicants may propose any project type that best serves the community’s needs and that reduces environmental impacts, within the program’s six eligible activities. (See “Technology and System Requirements.”)

Example projects These examples of projects or components of projects offer some ideas for potential applications. Keep in mind that this list is not exhaustive, and that some examples could be relevant for more than one topic area.

Also consider that projects should align with community priorities.

• Installation of a distributed wind plus battery storage and/or solar plus battery storage microgrid to reduce electricity cost and increase energy resilience through reducing demand on diesel in a remote community.

• Connecting homes to the grid previously not served by local power lines.

Applications Specifically NOT of Interest We do not expect to fund the following project types through this opportunity:

1. Large transmission projects (i.e., projects >69kV, or proposals of lines >30 miles). If you believe that using higher voltage and/or longer lines is crucial to the success of the project, you may justify why you are including those components in the application.

2. Single-campus projects that serve only the regular operation of that facility (e.g., solar on individual hospitals or schools). For topic areas 3 and 4, applicants may propose single-campus projects that include backup power from emission-free sources for critical community-serving buildings (e.g., solar plus battery storage for a cultural center that serves as a command center and warming shelter during power outages).

3. Electric vehicles (EVs). See bullet below about EV charging.

4. Projects solely focused on EV charging. EV charging infrastructure may be a component of a broader, otherwise eligible project.

5. Projects including only weatherization.

28 See footnote 26 for a description of microgrids.

Expected award and project management structure Awards selected under this funding opportunity will likely follow a four-phased project management structure for managing scope, schedule, deliverables, and budget. Projects typically have one “Budget Period”29 per phase but may have more. DOE may adjust the phases or approaches for smaller, less complex projects. DOE will determine those options on a case-by-case basis, after we select projects and as we negotiate terms and conditions.

Figure 1 shows an example of the phase progression, major work activities, funding proportion, and timeline. This includes involvement from local communities and workers, relevant stakeholders, and tribes, as described within each of the phases below. All of the project’s activities will also be further defined during award negotiations and subsequent negotiations between Budget Periods. DOE anticipates that we will fund all awarded projects through all phases, pending successful Go/No-Go reviews between and within phases (see section on Transitions Between Budget Periods).

While Figure 1 and the narrative text below provide approximate timetables for each phase, these timetables are representative only. While phases are used to conceptually describe the progression of project development, awards will be managed in Budget Periods as defined in 2 CFR 200.1 “Budget Period.”

Figure 1. High-level summary of the expected phase structure for projects funded through this opportunity

Phase 1 – Detailed Planning Phase 1 activities will focus on developing specific aspects of the overall project plan and completing analysis to refine projections submitted as part of the proposal. These activities must provide assurance to DOE that the overall project plan is technologically, financially, and legally viable, with buy-in from relevant local and community stakeholders and tribes. This could include any plans to develop a skilled local labor pool, retain workers through quality jobs, establish partnerships with minority serving institutions and community based-organizations, and provide community benefits through Workforce and Community Agreements.

29 Budget Period means the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other revisions pursuant to § 200.308. See https://www.ecfr.gov/current/title-2/part-200#p-200.1(Budget%20period).

https://www.ecfr.gov/current/title-2/section-200.308 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200#p-200.1(Budget%20period).

Community and labor engagement should continue throughout Phase 1 to align project characteristics and decisions with community priorities and to publicly share project developments and community impacts as they become clearer.

Recipients will complete preliminary engineering and construction designs. This will include finalization of a Project Management Plan, a Risk Management Plan, the initial Safety Plan, an initial Financial Plan for all phases, and final site selection and procurement plan for the various components to be included in the award.

As specified by DOE, recipients will prepare an environmental information volume (EIV)30 or an environmental considerations summary (ECS) to support DOE’s National Environmental Policy Act (NEPA) evaluation of construction and operating impacts. Recipients should fully engage with the DOE’s NEPA team as they develop environmental and regulatory plans to prepare for permitting and approval processes in Phase 2. See the NOFO Supplemental Requirements document located on the Funding Opportunities page for more information about NEPA, EIVs, and ECSs.

Phase 2 – Project Development, Permitting, and Financing Phase 2 is for advanced planning activities. Recipients will finalize their project development plans, workforce and staffing plans, commercial agreements, workforce and community agreements, financial structure, and fabrication plans, and complete the necessary permitting and approval activities required to begin construction. By the end of Phase 2, engineering and operational designs should be sufficiently mature to support completion and execution of relevant fabrication, procurement, or construction contracts and starting major project execution tasks.

In Phase 2, recipients may start procurement of items with long lead times, with prior DOE approval.

Third-party financing agreements should be completed and any relevant offtake agreements in place.

Risk management plans should be revised and updated to reflect progress made and risks mitigated as well as new or emerging risks and corresponding management plans.

By the completion of Phase 2, safety and security plans should be finalized and execution ready.

All necessary permits and regulatory approvals should be in place to prepare for construction, including completion of DOE’s NEPA review. All procurement plans should be finalized. Community and labor engagement should have progressed, and updated comprehensive community benefits commitments should reflect community and labor input and collaboration to date and set the stage for ongoing engagement. Community impact targets should be finalized, and tracking plans should be in place to monitor economic, environmental, and social impacts of the projects.

Phase 3 – Assembly, Installation, Construction, and Integration Phase 3 activities will focus on implementation. Recipients will employ industry standard project management tools and will be required to provide regular status updates and reports. Plans recipients develop in the preceding phases will be revised and updated as appropriate to reflect actual performance.

Engineering drawings may be further developed within this phase. Operational protocols and controls will be finalized within this phase.

30 For more information about the environmental information volume, see here: https://www.energy.gov/sites/default/files/2024- 03/GUIDANCE%20ON%20PREPARATION%20OF%20THE%20ENVIRONMENTAL%20INFORMATION%20VOLUME%2003333024.pdf.

https://www.energy.gov/oced/apply-funding-opportunities#funding https://www.energy.gov/sites/default/files/2024-03/GUIDANCE%20ON%20PREPARATION%20OF%20THE%20ENVIRONMENTAL%20INFORMATION%20VOLUME%2003333024.pdf https://www.energy.gov/sites/default/files/2024-03/GUIDANCE%20ON%20PREPARATION%20OF%20THE%20ENVIRONMENTAL%20INFORMATION%20VOLUME%2003333024.pdf

Previously and newly developed risks will be tracked, actively managed, and regularly reported to DOE.

Reporting frequencies and content requirements will be unique to each award and negotiated prior to Phase 3 commencement.

While recipients will manage implementation, DOE will closely monitor progress and evaluate it against the plans developed through Phase 2. DOE and/or its third-party representatives will visit the site(s) regularly to verify progress and collect data, including data related to community benefits, consistent with the established reporting requirements.

During Phase 3, recipients will continue to advance their community benefits commitments, including commitments to quality jobs, and provide ongoing mechanisms for community and labor input that will support meaningful benefits and minimize any project negative impacts. Outcomes and impacts related to community benefits efforts will be tracked to assess progress.

Phase 3 may look significantly different for each award as there will be varying amounts of construction and retrofitting. Specific details will be addressed for selected projects during the negotiation phase.

Phase 4 – Ramp-Up and Sustained Operations In Phase 4, recipients will transition to operations. By the end of Phase 4, each award will have operated over an extended period with a plan for workforce continuity. For this program, it is expected that Phase 4 will have a minimum duration of one year and may extend as long as three years.

A key objective this program…

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