MI Healthy Climate Challenge – Unlocking Elective Pay Grants

MI Healthy Climate Challenge – Unlocking Elective Pay Grants is sponsored by Michigan Department of Environment, Great Lakes, and Energy. Grants to help nonprofits, public institutions, and other tax-exempt entities access federal clean-energy tax credits through Elective Pay.

Department of Environment, Great Lakes, and Energy * District office locations * Boards and advisory groups * Accountability and Transparency * Mission, Vision, and Values Go to Divisions and Offices * Drinking Water and Environmental Health * Geologic Resources Management * Office of Legislative Affairs * Office of Climate and Energy * Office of Public Information * Office of the Clean Water Public Advocate * Office of the Environmental Justice Public Advocate * Office of the Great Lakes * Remediation and Redevelopment District office locations Go to District office locations A complete list of all programs within the Department of Environment, Great Lakes, and Energy (EGLE) Boards and advisory groups Go to Boards and advisory groups Go to Career Opportunities Accountability and Transparency Go to Accountability and Transparency * Nondiscrimination in EGLE Programs Mission, Vision, and Values Go to Mission, Vision, and Values Community involvement and public participation are an essential part of EGLE’s mission, vision, and values.

* Public Participation Policy * Community Engagement Database Go to Services we provide * Environmental Lending Station * Drinking Water in Michigan * Learn About our Great Lakes * Inland Lakes and Streams * Making Contaminated Sites Safe for Reuse * Water Quality Monitoring Go to Legislative reports Go to Regulatory Assistance * Environmental rules and regulations * Water Operator Certification Programs Go to Compliance Assistance * Environmental audit privilege and immunity * Environmental Consultant Assistance SARA Title III establishes requirements regarding emergency planning and "Community Right-to-Know" reporting on hazardous and toxic chemicals for federal, state, local, and tribal governments, as well as regulated facilities.

* Michigan Facilities’ Guide Environmental rules and regulations Go to Environmental rules and regulations * Michigan Guide to Environmental Regulations * Policies and procedures * EGLE Grants System (EGX) Go to State Revolving Fund Water Operator Certification Programs Go to Water Operator Certification Programs Go to Legislative reports * Michigan Environmental Health and Drinking Water Information System (MiEHDWIS) * Remediation Information Data Exchange (RIDE) Information about the GeoWebFace application.

Michigan Environmental Health and Drinking Water Information System (MiEHDWIS) Go to Michigan Environmental Health and Drinking Water Information System (MiEHDWIS) Remediation Information Data Exchange (RIDE) Go to Remediation Information Data Exchange (RIDE) Resources and information on utilizing RRD's data exchange and the Inventory of Facilities.

​ * Cleanup Contract Information * Submittals Under Legal Agreements * Accessing Electronic Documents (Files) * RIDE Submittal Types & Guidance * Guide to Electronic Submittals * Guide to Location Not Found Submittal * Submitting Onsite Work Activity Notices An interactive map displaying contaminated sites throughout Michigan regulated under Parts 213, 201, and 211.

The Michigan Department of Environment, Great Lakes, and Energy’s (EGLE) Water Well Viewer (WWV), is an interactive mapping system that displays water wells along with other information, such as wellhead protection areas, underground storage tanks, and sites of environmental contamination. Water well locations have been identified by address matching, the use of global positioning systems (GPS), and by legal descriptions.

This system allows water well drilling and pump installation contractors to submit water well records.

Go to Wetlands Map Viewer Go to View all maps and apps * Past Events and Recorded Webinars EGLE's interactive calendar is designed to provide timely information on decisions before the Director, proposed settlements of contested cases, administrative rules promulgation, public hearings, meetings and comment deadlines, and environmental conferences, workshops and training programs. * Binational Lake St.

Clair Conference * Great Lakes PFAS Summit * Great Lakes Drinking Water Conference * Great Lakes Environmental Emergency Response and Management Conference * Great Lakes Microplastics Summit * Great Lakes Water Infrastructure Conference * Michigan Environmental Compliance Conference * Michigan Environmental Justice Conference * Michigan Sustainability Conference * MI Healthy Climate Conference * MI Materials Management Conference * Source Water Protection Conference * State of the Western Lake Erie Basin Conference EGLE celebrates Earth Day every year in April - celebrate with us!

* Environmental Service Award * Poster contest information * 52 ways to celebrate Earth Day Past Events and Recorded Webinars Go to Past Events and Recorded Webinars * Community Learning Series * Environmental emergency preparedness and response * MiEnviro Portal for Air * MiEnviro for Everyone webinar series * Remediation and risk management * SARA Title III - Tier II * Environmental emergencies * Environmental Assistance Center * Freedom of Information Act (FOIA) requests * District office locations * Legal service of process * Lobbyable Public Officials Environmental emergencies Go to Environmental emergencies Environmental Assistance Center Go to Environmental Assistance Center Freedom of Information Act (FOIA) requests Go to Freedom of Information Act (FOIA) requests Go to Divisions and Offices District office locations Go to District office locations Go to Legal service of process Anyone wishing to formally serve legal documents upon the Department of Environment, Great Lakes, and Energy (EGLE), or its officers or employees, may do so by the following methods.

Lobbyable Public Officials Go to Lobbyable Public Officials * District office locations * Boards and advisory groups * Accountability and Transparency * Mission, Vision, and Values BackDivisions and Offices * Drinking Water and Environmental Health * Geologic Resources Management * Office of Legislative Affairs * Office of Climate and Energy * Office of Public Information * Office of the Clean Water Public Advocate * Office of the Environmental Justice Public Advocate * Office of the Great Lakes * Remediation and Redevelopment BackDistrict office locations BackBoards and advisory groups BackAccountability and Transparency * Nondiscrimination in EGLE Programs BackMission, Vision, and Values * Public Participation Policy * Community Engagement Database * Environmental Lending Station * Drinking Water in Michigan * Learn About our Great Lakes * Inland Lakes and Streams * Making Contaminated Sites Safe for Reuse * Water Quality Monitoring BackRegulatory Assistance * Environmental rules and regulations * Water Operator Certification Programs BackCompliance Assistance * Environmental audit privilege and immunity * Environmental Consultant Assistance * Michigan Facilities’ Guide BackEnvironmental rules and regulations * Michigan Guide to Environmental Regulations * Policies and procedures * EGLE Grants System (EGX) BackWater Operator Certification Programs * Michigan Environmental Health and Drinking Water Information System (MiEHDWIS) * Remediation Information Data Exchange (RIDE) BackMichigan Environmental Health and Drinking Water Information System (MiEHDWIS) BackRemediation Information Data Exchange (RIDE) * Cleanup Contract Information * Submittals Under Legal Agreements * Accessing Electronic Documents (Files) * RIDE Submittal Types & Guidance * Guide to Electronic Submittals * Guide to Location Not Found Submittal * Submitting Onsite Work Activity Notices BackView all maps and apps * Past Events and Recorded Webinars * Binational Lake St.

Clair Conference * Great Lakes PFAS Summit * Great Lakes Drinking Water Conference * Great Lakes Environmental Emergency Response and Management Conference * Great Lakes Microplastics Summit * Great Lakes Water Infrastructure Conference * Michigan Environmental Compliance Conference * Michigan Environmental Justice Conference * Michigan Sustainability Conference * MI Healthy Climate Conference * MI Materials Management Conference * Source Water Protection Conference * State of the Western Lake Erie Basin Conference * Environmental Service Award * Poster contest information * 52 ways to celebrate Earth Day BackPast Events and Recorded Webinars * Community Learning Series * Environmental emergency preparedness and response * MiEnviro Portal for Air * MiEnviro for Everyone webinar series * Remediation and risk management * SARA Title III - Tier II * Environmental emergencies * Environmental Assistance Center * Freedom of Information Act (FOIA) requests * District office locations * Legal service of process * Lobbyable Public Officials BackEnvironmental emergencies BackEnvironmental Assistance Center BackFreedom of Information Act (FOIA) requests BackDivisions and Offices BackDistrict office locations BackLegal service of process BackLobbyable Public Officials /egle/about/organization/climate-and-energy/mi-healthy-climate-challenge/unlocking-elective-pay Back to Department of Environment, Great Lakes, and Energy Search is currently unavailable.

Please try again later. * Michigan PFAS Action Response Team (MPART) * Water operator certification programs * Freedom of Information Act (FOIA) * Emergency planning (SARA Title III) * Report an environmental emergency? * Get help with a permit?

* Dispose of household hazardous waste? * Test my home for radon? * Test my drinking water?

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# Challenge #2: Unlocking Elective Pay Picture of a house and installation of solar panels # Challenge #2: Unlocking Elective Pay 1. [](https://www. michigan.

gov/egle "Home") 4. Office of Climate and Energy 5. MI Healthy Climate Challenge 6.

Unlocking Elective Pay Applications are now closed This was a competitive, one-time funding opportunity, and applications are now closed. **Unlocking Elective Pay** is the second grant program under the MI Healthy Climate Challenge, launched in partnership with the Michigan Infrastructure Office Technical Assistance Center.

This Challenge will provide grants to develop and deploy strategies that help nonprofits, local and Tribal governments, public school districts, electric cooperatives, houses of worship, and other tax-exempt entities access and utilize federal clean energy tax credits, specifically by using Elective Pay. Certain federal clean energy tax credits offer the opportunity to receive a reimbursement of up to 30% to 70% on project costs.

Historically, these incentives were largely unavailable to tax-exempt entities, including nonprofits, local governments, and low-income households. However, with the introduction of **Elective Pay**, tax-exempt entities can claim these same tax credits in the form of cash payments, unlocking significant savings for community-driven clean energy projects.

These funds can be used for a range of eligible projects, including solar, energy storage, geothermal installations, and electric vehicles and charging infrastructure. However, these incentives remain underutilized due to complex eligibility requirements, long timelines for reimbursement, and limited awareness or capacity among potential users.

**This Challenge will invest in strategies that address these barriers and make Elective Pay and clean energy tax credits more accessible and impactful. ** This Challenge will support the creation and implementation of planning and/or financial support strategies that help tax-exempt community institutions in Michigan maximize federal clean energy tax credits.

Funded projects may include strategies to aggregate and bundle clean energy upgrades across multiple sites, distribute tax credit benefits to low- and moderate-income households, enable tax credit uptake with low-cost financing solutions, support federal guideline compliance, and structure projects to access bonus incentives—ultimately making clean energy more affordable, accessible, and impactful across the state.

## Challenge #2 Objectives 1. **Maximize Utilization of Elective Pay in Michigan:**Support Michigan’s tax-exempt entities such as nonprofits, local governments, schools, and tribal organizations in accessing and applying federal clean energy tax credits using the Elective Pay option under Sections 6417 and 6418, including with support navigating ongoing federal guidance changes. 2.

**Facilitate Cross-Sector Partnerships to Build Clean Energy Ecosystems Across Michigan:**Support partnerships among public, private, nonprofit, tribal, and academic entities, as well as across industries and regions, to accelerate clean energy deployment in Michigan.

These collaborations should enhance project development, expand access to tax credits and financing, align workforce and supply chain efforts, and promote scalable, community-driven solutions. 3.

**Scale Replicable Clean Energy Projects and Financing Models Across Michigan:** Support the development and deployment of clean energy projects through innovative aggregation and financing strategies, including Elective Pay, creative financing solutions (such as bridge financing or aggregated capital funds), and portfolio bundling.

These portfolios may be across multiple buildings, communities, or property types, such as residential, commercial, or community-serving facilities, and may be across various project sponsors such as nonprofits, local governments, and tribal organizations to expand access and reduce barriers. 4.

**Expand Tax Credit Access for Households Without Tax Liability:**Expand access to tax credits for households without federal tax liability by supporting nonprofit-led aggregation models and other inclusive financing approaches that benefit low- and moderate-income residents. 5.

**Advance Access to Bonus Incentives:** Ensure that projects in all communities, including low-income communities, can access available bonus credits, such as the Low-Income Communities Bonus Credit Program, the Energy Communities Bonus Credit, and the Domestic Content Bonus Credit, and comply with the Prevailing Wage and Apprenticeship Requirements.

## Challenge #2 program priorities * Eligible Entities and Properties: Maximize participation across a wide range of project sponsors, including nonprofit aggregators, local governments, developers, and community-based organizations, and eligible property types such as single-family homes, multifamily housing (individually or master metered), commercial buildings, and community-serving facilities.

* Innovative Aggregation and Financing Models: Support the development and scaling of innovative tax credit-driven project structures, such as portfolio bundling, shared systems, and community-scale investments, that reduce transaction costs and expand access for entities and individuals with limited tax liability.

* Scalability and Replicability: Prioritize projects that can serve as models for broader adoption, offering approaches that can be implemented by other organizations or replicated in different communities across Michigan.

* Integration with Public and Private Capital: Encourage projects that combine federal tax credits with other sources of public and private capital, such as grants, low-interest loans, or state or local clean energy programs, to enhance financial leverage, improve project viability, and maximize overall impact.

* Geographic Access in Tax Credit Utilization: Ensure broad geographic distribution of tax credit-supported projects across Michigan, including rural, suburban, and urban areas in both the Upper and Lower Peninsulas, with a focus on access in low-income communities and communities with high energy burdens.

* Support for Hard-to-Reach Markets: Encourage projects that address barriers in underserved markets, including small multifamily buildings, manufactured housing, Tribal communities, and low-income households that have historically lacked access to clean energy programs.

* Maximizing Public Benefit and Financial Impact: Encourage projects that deliver meaningful community benefits through cost savings, local reinvestment strategies, such as revolving savings funds, or shared ownership models that distribute the financial value of tax credits to residents and communities.

* Rapid Deployment and Credit Utilization: Prioritize entities with the capacity to implement projects quickly to ensure timely utilization of available federal tax credits given federal phase out requirements. ## Total funding available A total of $2,000,000 is available through this one-time funding opportunity. Individual grant awards are expected to range from $250,000 to $1,000,000, with approximately 2 to 6 grants anticipated.

Funding requests should align with the scale, complexity, and replicability of the proposed project. This program is intended to support work that enables or accelerates clean energy deployment for tax-exempt or credit-ineligible entities, rather than funding individual projects alone.

Applicants are encouraged to demonstrate how they will leverage additional funding sources, such as Elective Pay tax credits, philanthropic grants, private financing, or in-kind support. The State of Michigan may choose not to allocate all available funds and reserves the right to revise or reopen the application process at a later date.

**Please note:**_This grant is not intended to fund individual clean energy projects that are individually applying for Elective Pay tax credits. Instead, it is designed to support project aggregation models, technical assistance, and financial mechanisms that enable broader access to Elective Pay for tax-exempt or credit-constrained entities that may not have the capacity to pursue these credits on their own.

_ Eligible applicants are not limited to those directly eligible for Elective Pay under federal tax law. Rather, this grant supports organizations that help **enable, aggregate, finance, or facilitate** Elective Pay deployment for public, nonprofit, and small-scale beneficiaries. ### Eligible entities include * Nonprofit organizations with the capacity to own and manage clean energy systems across multiple properties or entities.

* Affordable housing developers or housing-focused nonprofits serving low-income households. * Community-based organizations (CBOs) with a focus on equitable clean energy access. * Regional or statewide nonprofits experienced in aggregating projects across geographies or sectors.

* Organizations experienced in third-party ownership models, such as Power Purchase Agreements (PPAs) or leases, that allow nonprofits to claim Elective Pay and pass on benefits to others. * Community lenders, including Community Development Financial Institutions (CDFIs), green banks, and credit unions, that can offer or develop bridge or other financing solutions that enable Elective Pay projects.

* Technical assistance providers or nonprofit intermediaries that support eligible Elective Pay entities, project developers, community lenders, or project aggregators. * Municipal governments or other public entities partnering with eligible nonprofits or lenders to participate in aggregated or facilitated Elective Pay projects.

* Collaborative partnerships involving lenders, developers, aggregators, technical assistance providers, or community organizations that together support broader deployment models. For-profit organizations may apply only in partnership with, or on behalf of, a nonprofit or public sector entity, and must clearly demonstrate how that entity will meaningfully benefit from and participate in the project.

Applicants based externally to Michigan may apply only in partnership with, or on behalf of, a Michigan-based nonprofit or public sector entity, and must clearly demonstrate how that entity will meaningfully benefit from and participate in the project.

To be considered, applicants must: * Submit a complete concept paper by the deadline * Receive encouragement to submit a formal application * Submit all required application materials and address all included prompts * Use the format and attachments provided in the appendices ## **Application timeline** This was a competitive, one-time funding opportunity. Applications are now closed.

If you have any questions or need help at any step of the process, please don’t hesitate to contact us at EGLE-OCE@Michigan. gov. Be sure to include “MI Healthy Climate Challenge” in the subject line to help us respond to your questions more efficiently. ## You may also be interested in...

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