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June 21, 2023
The Infrastructure Investment and Jobs Act (IIJA) provided $50 million to the U.S. Department of Energy (DOE) to help nonprofits improve the energy efficiency of their facilities. The Renew America’s Nonprofits program (originally the Energy Efficiency Materials Pilot Program) will provide up to $200,000 for energy efficiency projects in buildings owned and operated by nonprofits. Installing energy efficiency measures can help nonprofits reduce operating costs, free up resources to advance their core missions, set a good and visible example of environmental stewardship, and improve the wellbeing of employees, volunteers, and those they serve.
The potential for Renew America’s Nonprofits to deliver economic, social, and environmental benefits to nonprofits and the communities they serve is significant. Energy costs are the second-highest operational expense for many nonprofits. Most nonprofits face significant financial and information barriers to implementing energy efficiency. These barriers are exacerbated for nonprofits that serve rural areas and those led by people of color.
DOE released the Renew America’s Nonprofits Funding Opportunity Announcement (FOA) on May 24, 2023, with information about how and when 501(c)(3) nonprofit organizations can take advantage of the opportunity. The program is structured so that a nonprofit “Prime Recipient” assembles a portfolio of cost-effective and otherwise beneficial energy efficiency projects in buildings owned and operated by nonprofit “Subrecipients” (FOA, executive summary).
DOE expects to award between five and 15 grants to Prime Recipients, which will provide up to $200,000 to Subrecipients to perform cost-effective upgrades that deliver energy savings, greenhouse gas emission reductions, and a wide range of community benefits. DOE projects grant performance periods to be between 36 and 48 months.
A “nonprofit building” means a building owned and operated by an organization described in section 501(c)(3) of the Internal Revenue Code of 1986. Examples of energy efficiency measures (defined in the IIJA as “energy-efficiency material[s]”) include products, pieces of equipment, or systems—such as roofs, lighting systems, doors, insulation, wiring, plumbing, and heating, ventilation, and air conditioning systems—that reduce energy consumption.
DOE is compiling a “Teaming Partner List” to facilitate the formation of new project teams (led by Prime Recipients).
The Teaming Partner List allows organizations that wish to participate in an application to express their interest to other applicants and explore potential partnerships.
The FOA provides a more detailed explanation and additional instructions.
Applications will be evaluated according to four criteria (FOA, pgs. 40-42):
Technical assistance approach; plan for evaluation, measurement, and verification; and project team composition.
Energy savings, cost savings, emissions reductions, and cost-effectiveness of measures.
Leverage and enduring impact of projects beyond the grant performance period.
Alignment with Justice40, meaningful community engagement, and job quality.
Prime Recipients should submit applications that include (FOA, pgs. 17-25):
Up to 15 pages to document performance-based criteria, program workplan, goals, approach, and project team composition.
Portfolio-wide SMART (i.e., specific, measurable, achievable, relevant, and timely) goals and descriptions of diversity, equity, inclusion, and accessibility aims; plan for meaningful community engagement; negotiated workforce and community agreement to ensure job quality; and discussion of disadvantaged communities that will realize benefits.
Nonprofits should prioritize learning about how energy is consumed in their buildings, including by cataloging the make, model, fuel source, and age of fixtures and equipment eligible for energy efficiency retrofits. Nonprofits should note the address, construction date, floor area, occupancy, and irrigation area of their buildings and compile 12 months of utility bills. ENERGY STAR® Portfolio Manager® is an indispensable software tool to establish a baseline of building energy consumption. Benchmarking is useful for scoping projects as well as setting goals for evaluation, measurement of success, and verification of savings.
Author: Miguel Yañez-Barnuevo Editor: Daniel Bresette
Top-Rated Climate Nonprofit – 4-Star Charity