The U.S. Department of Energy has published three allocation formulas that will be used to distribute funds to local governments, states, and tribes through the Energy Efficiency and Conservation Block Grant (EECBG) Program. EECBG aims to support state, local, and tribal efforts to reduce fossil fuel use, reduce total energy use, and improve energy efficiency.
The Infrastructure Investment and Jobs Act, signed into law in November 2021, appropriated $550 million to EECBG for FY2022 to remain available until expended. Of this amount, 28% will be allocated to states through formula grants, 68% to eligible units of local government, 2% to tribes, and 2% for competitive grants to ineligible local governments and Indian tribes, as prescribed by the Energy Independence and Security Act of 2007. Each state will receive at least 1.25%, and the remaining funds will be allocated to states based on three equally weighted factors:
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The total population for the state;
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The remaining population of the state after subtracting the populations of all eligible local governments within the state; and
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Total state energy consumption, except for consumption in the industrial sector.
More detail on the state, local, and tribal allocations is available in Federal Register Volume 87, Issue 124 published on June 29, 2022.