Public Water Supply Energy Efficiency Grant Program

Public Water Supply Energy Efficiency Grant Program is sponsored by Illinois EPA (funded by U.S. Department of Energy). This program provides funding to support energy efficiency upgrades at public water supply (PWS) facilities, also referred to as drinking water treatment plants.

Euna Grants - Environmental Protection Agency - Public Water Supply Energy Efficiency Grant Program-Round 2 Public Water Supply Energy Efficiency Grant Program-Round 2 Public Water Supply Energy Efficiency Grant Program-Round 2 Illinois EPA Office of Energy intends to fund the implementation of energy efficiency projects at public water supply (PWS) facilities, also referred to as drinking water treatment plants.

Eligible energy efficiency measures must have been identified in an earlier energy efficiency assessment. Energy efficiency and energy conservation measures may include improvement to pump and motor equipment including proper sizing and/or upgrades to standard efficiency motors or installment of variable frequency drives (VFDs); energy demand management, including load shifting; as well as HVAC and/or lighting upgrades.

Projects will be scored and selected by proposed energy savings (kWh) per dollar invested and energy cost impact. Additional points will be awarded to proposed projects serving an area of environmental justice concern, as identified by the Illinois EPA Office of Environmental Justice AND for projects served by municipally owned electric utilities or electric cooperatives.

Energy burden (%) of the PWS service area will be used to break a tie. Match is required to apply for the PWS Energy Efficiency Grant Program. Leveraged or match funding may include money spent (i.e. personnel, indirect, etc.) or in-kind services utilized to complete the approved scope of work within the effective dates of the grant agreement.

The applicant may not utilize other federal funds to meet match minimum. Cash and in-kind contributions used to meet the minimum matching contribution requirement are subject to the limitations on expenditures described in 10 CFR 420. 18(a) but are not subject to the 20 percent limitation in 10 CFR 420.

18(b).

Minimum match requirements are as follows: • 10% match in an Illinois EPA area of Environmental Justice concern (utilize the Illinois EPA EJ Start mapping tool to verify location) • 20% match outside an EJ area of concern Illinois EPA Office of Energy is responsible for state-level program development and management, including the application process with determined criteria for this grant program and establishment of projects eligible for funding aimed at reducing the energy burden for Illinois consumers.

Funding for this grant program comes directly from the U.S. Department of Energy (USDOE) Infrastructure Investment and Jobs Act (IIJA) State Energy Program (SEP) funding. USDOE SEP provides funding and technical assistance to advance state-led energy initiatives and maximize the benefits of decreasing energy waste, per 10 CFR 420.

The PWS Energy Efficiency Grant Program funds the implementation of energy efficiency projects at PWS facilities in the State of Illinois. Funding Opportunity Number Assistance Listings Number https://il. amplifund.

com/Public/Opportunities/Details/fc791b17-9a1b-4ddc-b2e7-b4fea6047dc5 Federal Or Federal Pass Through Funding Source Description The USDOE IIJA SEP funds support states in modernizing energy systems, strengthening energy security, and supporting a more affordable energy future. The IIJA is Public Law 117-58, and Section 40109 addresses the SEP within the energy provisions of the law.

Refer to 2 CFR 200, as amended by 2 CFR 910 regulations - Subpart E - Cost Principles and 44 Ill. Admin. Code Part 7000 Expected Number of Awards Indirect Cost Description Indirect costs are not required under this program; however, to charge indirect costs, the Applicant must select one of the following three options: _ a) Federally Negotiated Rate.

Organizations that receive direct federal funding may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. The State of Illinois will accept the federally negotiated rate. The applicant must provide a copy of the federal NICRA.

_ b) State Negotiated Rate. The applicant must negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate or elect to use the De Minimis rate. _ c) De Minimis Rate.

An organization that has never received a Federally Negotiated Rate may elect a de minimis rate of 15% of modified total direct costs (MTDC). Once established, the de minimis rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the de minimis rate.

The indirect cost rate proposal must be submitted to the State of Illinois within 90 days of the notice of award. An applicant has the discretion not to claim payment for indirect costs. Applicants that elect not to claim indirect costs cannot be reimbursed for indirect costs.

Restrictions on Indirect Costs Submission Timeline Additional Information • March 2, 2026 - NOFO opens • May 4, 2026 - Close the application period • June 2026 - Send award notices • August 2026 - Execute Uniform Grant Agreements • March 2028 - End of Performance Period/ Project Completion • April 2028 - Final Payment Requests Submitted Allow Multiple Applications Application Review Start Date / Pre-Qualification Deadline Other Submission Requirements • Uniform Application for State Grant Assistance • Programmatic Risk Assessment Questionnaire • Third-Party PWS Energy Efficiency Assessment • Conflict of Interest Disclosure • National Environmental Policy Act (NEPA) Compliance Question Submission Information Question Submission Open Date Question Submission Close Date Question Submission Email Address EPA.

EnergyGrants@Illinois. gov Question Submission Additional Information For questions, use subject line: Illinois PWS EE Program Application Question * A Modified Total Direct Cost (MTDC) calculation worksheet is included to help applicants accurately and consistently calculate allowable indirect costs and reduce errors or overclaims.

* An application checklist is included to clearly communicate submission requirements, promote consistency and fairness, reduce incomplete applications, and support an efficient, compliant review process.

MTDC Automated Calculation Worksheet MTDC Manual Calculation Worksheet PWS Grant Application Checklist Technical Assistance Session Technical Assistance Session Conference Info / Registration Link Prerecorded application informational webinar will be available here: https://epa. illinois. gov/topics/energy/energy-efficiency/energy-efficiency-public-water-infrastructure-/pws-grants.

html Others, Government Organizations Applicant Eligibility Information The Illinois EPA Office of Energy will accept applications from publicly-owned PWS facilities in the State of Illinois. Additional points and prioritization will be given to properties in Illinois EPA area of Environmental Justice Concern and for projects located in municipally-owned electric utility or electric cooperative service territory.

Credentials Documentation Eligibility Information Along with standard requirements (Uniform Application for State Grant Assistance, Programmatic Risk Assessment, NEPA Compliance, and Conflict of Interest Disclosure), a project narrative, itemized project/s budget, and a copy of third-party energy efficiency assessment of facility completed within the last five (5) years identifying prospective project/s will be required.

Additional Eligibility Information - The project/s will improve energy efficiency at the Applicant's PWS. - The Applicant can meet the 10-20% match requirement. - The project can be completed by March 2028.

- Applicant can submit final reimbursement request by April 2028. Additional Information URL https://epa. illinois.

gov/topics/energy. html Additional Information URL Description Award Administration Information After Illinois EPA has reviewed applications for eligibility and completed merit-based scoring, successful applicants will receive notification of award. After all prerequisites to the Grant Agreement have been completed, the Grant Agreement between the Illinois EPA and the applicant will be sent for the applicant to sign and return.

Once the Grant Agreement is fully executed by the Illinois EPA, a copy will be returned to the applicant. Only after the Grant Agreement has been fully executed can expenses be incurred for reimbursement. Any expenses incurred outside of the grant period (before or after) are not eligible either as match or for reimbursement related to the grant award.

Administrative and National Policy Requirements Grant agreements from this opportunity are administered under the Code of Federal Regulations at 2 CFR 200. The Grant Funds Recovery Act (30 ILCS 705) also governs all grant agreements resulting from this NOFO, except in the event of a conflict between the Illinois Grant Funds Recovery Act and the Grant Accountability and Transparency Act.

In this circumstance, the provisions of the Grant Accountability and Transparency Act control. All grantees will be required to submit quarterly reports to the Illinois EPA Office of Energy. • The Periodic Performance Report (PPR), the Periodic Financial Report (PFR), and Narrative Project Reports (NPR) are required at a minimum on a quarterly basis.

Quarterly reporting will be required unless more frequent reporting is required pursuant to specific award conditions. • These reports will describe the expenditure(s) of the funds and related performance measures. The first PPR, PFR, and NPR report shall cover the first three months after the Award begins.

Quarterly reports must be submitted no later than 30 calendar days following the three-month period covered by the report. Failure to submit the required PPR, PFR, and NPR report may cause a delay or suspension of funding. • Quarterly reports will be due on October 15 (Q1 = July-September), January 15 (Q2 = October-December), April 15 (Q3 = January-March), and July 15 (Q4 = April-June) over the duration of the grant project period.

Grantees must report the status of the project, specific tasks completed during the reporting period, tasks that remain to be completed, specific costs incurred and paid by the grantee during the reporting period, and projected date of project completion. • Grantees will also be required to submit a cumulative performance, financial, and narrative close-out report.

Any additional reporting requirements will be outlined in the executed agreement. State Awarding Agency Contacts Any questions about this opportunity should be directed to: Adena Rivas at Adena. Rivas@Illinois.

gov or 217. 785. 7332.

Neither the State of Illinois nor the Illinois EPA is obligated to offer an award as a result of this funding opportunity. Grant applicants are not authorized to proceed with projects until a grant agreement is fully executed. Applications found to be eligible and complete will undergo a comprehensive, merit-based review performed in compliance with GATA and 2 CFR 200 Uniform Requirements.

The merit-based review is designed to evaluate projects against the following criteria in priority order: · Cost Effectiveness. All applications will be ranked by the project’s Cost Effectiveness score generated by calculating energy savings (kWh) per dollar invested. An example cost effectiveness score for proposed projects has been provided below.

25 window replacement + labor = $26,090 total cost ($25,578 requested + $512 cost match) Energy savings from project = 7,000 kWh per window or 175,000 kWh for total project Project score = 175,000 kWh/$25,578 = 6. 8 x 10 = 68 points · Energy Cost Impact. The following Energy Cost Impact criteria will result in additional points added to the Cost Effectiveness score: a) Savings.

The total energy cost impact for the proposed projects will be ranked by the percentage of improvement for the project’s anticipated energy cost savings to treat one million gallons of drinking water ($/MG). Projects that save applicants the greatest amount of energy per year will receive the highest score. Projects that save applicants the least will receive the lowest score.

An example of percentage of improvement score has been provided as an example below. $96/MG Current cost to treat one million gallons - $63/MG anticipated cost to treat one million gallons of Water ($/MG) = $33/MG decrease in cost after project completion Savings Percentage from project = $33/MG decrease in anticipated cost after project completion / $96/MG pre-project cost to treat one million gallons = 0.

3438 Total percentage improvement = 0. 34375 x 100 = 34. 38% Project score for Energy Cost Impact = 3.

4 x 10 = 34 points b) Energy Rate. Projects with the highest electricity rate (kWh/$) over the previous 12 months will be ranked highest. The objective of this criterion is to reduce the energy cost for those projects that pay the highest energy rates.

Once the projects are ranked, the top 50% of projects with the highest electricity rate (kWh/$) for public water supply facilities will receive five (5) additional points added to their Energy Cost Impact score. · Additional Components.

Applications will receive additional points if either criterion is met below: a) An additional ten (10) points will be added to the project score for projects located in areas of environmental justice concern as determined by the Illinois EPA EJ Start mapping tool . b) An additional five (5) points will be added to the project score for projects served by a municipally owned electric utility or electric cooperative.

Application scores will be ranked highest to lowest based on the total project score and highest scores will be considered for an award. If tie-breakers are needed, the following factor will be used to determine funding award: § Highest energy burden (%) for the location of the property as defined by the USDOE LEAD Tool ( https://www. energy.

gov/scep/slsc/lead-tool ). Energy burden is defined as the average annual housing energy costs divided by the average annual household income for a given geographic area.

Review and Selection Process Additional review and selection processes include: · If the Agency determines that an applicant incorrectly calculated or indicated the project cost and/or total funding request based on the applicable cost estimate or eligible costs, and the Agency can correct the error, the application will still be accepted and reviewed.

If the applicant is awarded the grant, the Agency will contact the applicant and request a decision from the applicant as to whether it will accept the award based on the Agency’s determination of the project cost and/or total funding requested. If the applicant does not accept the Agency’s determination, the application will be rejected.

· Any remaining eligible project applicants/applications not funded may be eligible to re apply in future funding depending on the eligibility criteria of the subsequent funding. · If the amount of available grant funding is not sufficient to fund the application in its entirety, the review committee may evaluate the application to determine if a discrete portion or phase of the Project meeting the objectives of this NOFO can be funded.

If the review committee determines that it cannot fund the application in full or part, the next highest-ranked application may be reviewed for a discrete portion or phase to be funded to meet the objectives of the NOFO. · Illinois EPA staff will be responsible for evaluating applications. · An appeal process is available to applicants and other interested parties; however appeals are limited to the Illinois EPA evaluation process.

Evaluation scores may not be protested. An appeal must be submitted in writing to the following address: Illinois Environmental Protection Agency Attn: PWS EE Grant Program Evaluation Process Appeal, Office of Energy, 2520 W Iles Avenue, PO Box 19276, Springfield, Illinois, 62794-9276 · Appeals must be received within 14 calendar days after the date that the grant award notice has been published by the Illinois EPA to grants. illinois.

gov. The written appeal should include at a minimum the following: the name and address of the appealing party, identification of the grant, and a statement of reasons for the appeal. Illinois EPA shall acknowledge receipt of an appeal within 14 calendar days from the date the appeal was received.

When an appeal is received, the execution of the grant in contention that Illinois EPA intends to make under this NOFO shall be stayed until the appeal is resolved, unless the agency head or designee determines that the needs of the State require that the grant program move forward despite the appeal. The determination, and its rationale, must be documented in writing.

Illinois EPA shall respond to the appeal within 60 days or supply a written explanation to the appealing party as to why additional time is required. The appealing party must supply any additional information requested by Illinois EPA within the time period set in the request.

The Director of the Illinois EPA may appoint one or more Appeal Review Officers (ARO) to consider the grant-related appeal and make a recommendation to the Director of the Illinois EPA or designee for resolution. The ARO shall make a recommendation to the Director of the Illinois EPA or designee as expeditiously as possible after receiving all relevant, requested information.

In determining the appropriate recommendation, the ARO shall consider the integrity of the competitive grant process and the impact of the recommendation on the Illinois EPA. The Illinois EPA shall resolve the appeal by means of written determination, which shall include, but not be limited to: review of the appeal, appeal determination, and rationale for the determination.

Neither the State of Illinois nor Illinois EPA is obligated to make any award as a result of this NOFO.

Grant applicants are not authorized to proceed with projects until a properly executed Anticipated Announcement Dates Illinois EPA Action or Award Deadline Publish Funding Opportunity Close the Application Period Send a Notice of State Award to selected applicants for signature Provide fully executed grant agreement to grant recipients Projects must be completed by Grantee Grantee must submit Final Reimbursement Request to Illinois EPA