Over $1 Billion in Federal Funds Flow into the Midwest: Energy Efficiency’s Role in CPRG Implementation Awards

Illinois

The Climate Pollution Reduction Grants Program

In July 2024, the United States Environmental Protection Agency (EPA) announced 25 awardees of nearly $5 billion in Climate Pollution Reduction Grants program (CPRG) implementation awards. In early September, the EPA announced another $300 million in grants to 33 tribes and one territory in the final phase of planned CPRG funding. CPRG is one of several funding streams from the 2022 Inflation Reduction Act designed to reduce greenhouse gas (GHG) emissions and advance environmental justice. CPRG is broken down into two phases: phase one allocated formula awards for climate action planning, and phase two instituted a competitive grant process for implementation awards. 

Phase 1 

The first phase of the CPRG program launched in 2023 – and allocated formula planning awards to eligible states, metropolitan statistical areas (MSAs) and tribal entities to develop a:

  • Priority Climate Action Plan (PCAP) by early 2024 
  • Comprehensive Climate Action Plan by mid-2025 
  • Status Report at the close of the 4-year grant period. 

Each state (including Washington, D.C. and Puerto Rico), the 67 most populous MSAs and all tribes and territories were eligible for formula funding. Across MEEA’s 13-state region, 10 states, 19 MSAs and 14 tribal entities submitted PCAPs to the EPA. Plans included significant consideration for energy efficiency in residential, commercial and industrial buildings.

State and MSA PCAPsTribes and Territories PCAPs

State and MSA PCAPs (EPA)

Tribes and Territories PCAPs (EPA)

Phase 2

The second phase of the CPRG program was a competitive grant process – where eligible entities applied for funds to implement priority measures included in a state, MSA, tribal or territory Priority Climate Action Plan. State and territorial agencies, municipalities, air pollution control agencies and tribes that both did or did not receive planning grants were eligible to apply for Phase 2 funding. After reviewing nearly 300 applications, the EPA awarded 25 grants in the General Competition (states and metropolitan areas) – totaling $4.3 billion – and 34 grants to Tribes and Territories – totaling $300,000.

Across the nation, 15 out of 25 applications in the General Competition and 10 out of 34 applications in the Tribes and Territories Competition included priority measures to reduce greenhouse gas emissions in the buildings sector. These awards amount to over $1 billion in CPRG funds for energy efficiency measures in residences, commercial buildings and public buildings. Additionally, over $600 million in CPRG funds will be dedicated to the industrial sector, a portion of which will contribute to advancing industrial energy efficiency and installing industrial heat pumps for low-process heat manufacturers.

Midwestern Awardees

The General Competition awardees from our region are the states of Illinois, Michigan, Minnesota and Nebraska, along with the Cleveland-Elyria Metropolitan Statistical Area in Ohio. The Tribe and Territories Competition awardees are the Bad River Band of Lake Superior Chippewa Indians, Bay Mills Indian Community, Lac Vieux Desert Band of Lake Superior Chippewa Indians, Lower Sioux Indian Community in the State of Minnesota, Nottawaseppi Huron Band of Potawatomi, Pokagon Band of Potawatomi Indians, St. Croix Chippewa Indians of Wisconsin, Iowa Tribe of Kansas and Nebraska (ITKN), Rosebud Sioux Tribe and Spirit Lake Tribe.

General Competition Selected ApplicationsTribes and Territories Selected Applications

General Competition Selected Applications (EPA)

Tribes and Territories Selected Applications (EPA)

The table below provides information on the Midwest awardees and details on priority measures related to energy efficiency.

Awardee

Application Title

Anticipated Award Amount

Energy Efficiency Priority Measures

Illinois Environmental Protection Agency
(IL EPA)
State of Illinois: Climate Pollution Reduction Grant Implementation Grant

$430,251,378

Accelerate clean & efficient building adoption by retrofitting 12,000 homes and 2.3 million square feet of commercial space with the development of financial incentives and technical assistance programs.

Accelerate stretch building code adoption by local governments.

Kick-start industry decarbonization by
establishing a third-party clean industry concierge to improve industrial efficiency (5% by 2030 and 25% by 2050) and electrify low-temperature industrial heat (10% by 2030 and 95% by 2050).

Michigan EGLE, Office of Climate and EnergyAccelerating Siting, Zoning and Permitting of 60% Renewable Energy in Michigan

$129,104,391

This implementation award focuses on efforts within the electric power sector.
Minnesota Pollution Control AgencyMinnesota Climate-Smart Food Systems

$199,999,999

Support innovative investments in industrial food scraps processing facilities to improve efficiency toward zero waste and zero emissions.
Nebraska Department of Energy and Environment (NDEE)Nebraska Department of Environment and Energy CPRG Implementation Grant Application

$307,000,000

Expand NE’s public utilities energy efficiency, electrification and weatherization incentive programs for nonresidential buildings.

Deliver pre-weatherization assistance to low-income households.

Create a range of workforce programs and opportunities for all skill levels.

Lead Applicant: Cuyahoga County (OH)
Coalition: 
City of Cleveland and City of Painesville
Municipal Empowerment for Clean Energy and Conservation (MECEC)

$129,396,997

This implementation award focuses on efforts within the agriculture and natural and working lands and electric power sectors.
Bad River Band of Lake Superior Chippewa IndiansNiigaani-bagwajiiwii (Future Clean Energy)

$8,385,892

Conduct energy audits in 200 tribal residences and install energy efficiency upgrades.

Reduce the use of home heating fuels such as wood, propane and natural gas.

Provide training to build a sustainable clean energy workforce.

Bay Mills Indian CommunityBay Mills Indian Community's CPRG Solar Project Proposal

$17,316,468

This implementation award focuses on the electric power sector.
Lac Vieux Desert Band of Lake Superior Chippewa IndiansDecarbonize Lac Vieux Desert

$14,946,563

Conduct comprehensive energy assessments on tribal homes and businesses.

Apply energy efficiency, electrification and solar installation upgrades to 145 tribal residences and two tribal commercial buildings.

Lower Sioux Indian Community in the State of MinnesotaLower Sioux Indian Community's Energy Efficiency Improvements for Climate Resiliency Using Biomass Building Material

$4,994,967

Conduct weatherization on 60 residential buildings.

Adopt the use of Hempcrete, a low-carbon insulation material. 
Install 70 cold climate air-source heat pumps.

Establish an energy efficiency improvement fund for commercial buildings.

Create work force training opportunities to insulate and retrofit community buildings.

Nottawaseppi Huron Band of Potawatomi (NHBP)Greenhouse Gas Reduction Projects

$1,179,197

Upgrade 88 greenhouse light fixtures to energy efficient LED lighting. 
Pokagon Band of Potawatomi IndiansReducing Greenhouse Gases through Greener Energy Option Investigations and Implementation

$4,999,793

Retrofit nine tribal buildings with HVAC air-source and ground-source heat pumps. Retrofit six of the buildings with converted heat pump storage hot water heaters.

Improve resiliency to anticipated electricity shortfalls in MI.

Reduce energy costs and reliance on the energy grid.

St. Croix Chippewa Indians of WisconsinSt. Croix Chippewa Indians of Wisconsin Community Energy Initiative

$4,976,854

Conduct a series of energy audits to identify which residential, commercial and government buildings are the highest priority for energy efficiency improvements. Reduce energy consumption and energy costs.
Iowa Tribe of Kansas and Nebraska (ITKN)ITKN Energy Sovereignty and Community-Scale Decarbonization Project

$13,196,915

Provide no-cost installation of air-source heat pumps for 52 households on tribal lands. Reduce energy consumption by 25%.
Rosebud Sioux TribeRosebud Sioux Tribe EV Transit Project to Reduce Greenhouse Gases

$7,879,394

This implementation award focuses on the transportation sector.
Spirit Lake TribeSpirit Lake Tribe CPRG Implementation Grant

$7,279,786

Install geothermal heat pumps at 10 safe-house shelters and tribal-owned buildings.

Install energy efficient appliances and lighting in tribal residences to lower energy bills and reduce GHG emissions.

Timeline

The EPA expects to conclude contract negotiations and award funds before the end of the year. Each entity has its own implementation timeline, but more information is expected by early 2025. MEEA will continue to monitor any CPRG developments and stay tuned for a deeper dive on the Priority Climate Action Plans submitted from MEEA’s 13-state region.

If you have any questions, or are looking for more information, please contact Clara Stein, Policy Associate.