State of Oregon: Energy in Oregon - Recent Federal Investments in Energy and Climate

Congress passed two major pieces of legislation related to investments in energy and climate, including the Infrastructure Investment and Jobs Act (IIJA) in 2021 and the Inflation Reduction Act (IRA) in 2022.

The Infrastructure Investment and Jobs Act (IIJA) was introduced into Congress by Representative Peter DeFazio on June 4, 2021. Following months of negotiations, the bill passed with bipartisan support and was signed into law by President Joe Biden on November 15, 2021. The law authorizes $1.2 trillion in infrastructure spending across more than 380 federal programs. Of that, approximately $650 billion reauthorizes existing funding, and another $550 billion adds new funding to support the nation's infrastructure needs. The White House has developed a guidebook for IIJA funding.

President Biden signed the Inflation Reduction Act (IRA) into law on August 16, 2022. The IRA funds investments related to health and medical programs as well as energy and climate programs using various tax measures and grants. The IRA provides approximately $369 billion in funding in support of energy and climate initiatives. The White House released a Guidebook for Clean Energy and Climate Programs in the Inflation Reduction Act. The guidebook contains a profile sheet on each funding opportunity under the IRA. You can view and download the IRA guide here.

Not all of the energy and climate-related funding referenced above will flow through state energy offices like ODOE. There are numerous programs available to applicants from private businesses, institutions of higher education, community-based organizations, utilities, tribes, and local governments directly from federal agencies. Oregon Department of Energy staff are available to answer questions about this funding and encourages Oregonians to research and take advantage of opportunities that may support programs and projects in Oregon.

How ODOE is Working to Bring
Federal Funding to Oregon

ODOE has developed a tracking spreadsheet (opens in Excel) of energy-related funding opportunities through the IIJA and IRA. You'll find columns for program type, eligible recipients, available funding, relevant links, and more. We'll update the spreadsheet weekly with the latest information and highlight changes from the previous week in yellow – links will be checked monthly.

Specific Funding Information
(click to expand information)

State Energy Program

In May 2023, ODOE received an award of $5,664,180 under the State Energy Program available for the next five years. The State Energy Program funds will support work at ODOE related to energy security, clean energy, energy efficiency, resilience, and sustainable transportation.

Preventing Outages and Enhancing the Resilience of the Electric Grid (aka Grid Resilience)

ODOE was awarded funding for grid resilience activities under the IIJA on June 30, 2023. The program narrative, as accepted with the application to the U.S. DOE, can be viewed here. As the state is required to pass 95% of this funding through to eligible entities, ODOE is in the process of developing the criteria for this application now. The intent is to fund projects that will have the greatest community benefits while addressing the most pressing grid resilience needs. ODOE will share details about the subgrant application in the coming months. See the U.S. DOE’s grid resilience fact sheet for Oregon and learn more on the program page.

Assistance for Latest and Zero Building Energy Code Adoption

The U.S. DOE has issued a Notice of Intent to implement a funding opportunity available under the Inflation Reduction Act (IRA) to adopt and implement the latest model energy codes and zero energy codes. Through the IRA, Congress appropriated $1 billion to support states and local governments in the effort to improve new and existing residential and commercial buildings, increase energy efficiency, and workforce training. ODOE collaborated with other agencies on an RFI response to U.S. DOE, which was submitted on April 25, 2023. The full funding opportunity announcement is expected around October 2023.

Regional Clean Hydrogen Hubs

ODOE collaborated with the Pacific Northwest H2 Association (PNWH2) to develop their application for federal "hydrogen hub" dollars. If selected for this competitive grant, it would bring up to $1 billion in federal money to the region to fund projects that accelerate the transition to clean hydrogen energy production and use, as well as create potentially thousands of jobs across many trades. U.S. DOE is expected to make initial award decisions toward the end of 2023, with possible grantee funding available in early in 2024.

Energy Efficiency and Conservation Block Grant

On July 31, 2023, ODOE submitted an application to the U.S. DOE for EECBG formula funds. ODOE anticipates receiving $1.9 million in state funding, of which at least 60 percent will be subgranted to local governments who are not eligible for a direct federal award. Considering feedback from outreach meetings and the public listening session held on April 25, 2023, ODOE identified several priority project categories. While the following project categories were identified in the application and require approval from U.S. DOE, eligible communities should generally consider energy-efficiency projects in the following categories: building audits & retrofits; building efficiency & electrification campaigns; energy savings performance contracts; solar & storage – power purchase agreements and direct ownership; electric vehicles for municipal fleets; and EV charging infrastructure for the community. While awaiting a response from U.S. DOE, ODOE will begin to design an application for subgrant opportunities. ODOE will share details about the subgrant application in the coming months.

Resilient and Efficient Codes Implementation

On December 19, 2022, the U.S. DOE opened the application for competitive funding under the Resilient and Efficient Codes Implementation grant, authorized as part of IIJA. While ODOE was not a primary applicant, we provided letters of commitment for two applications which could benefit Oregonians, through different approaches if awarded. Both applications were submitted in late March to U.S. DOE and both applications were selected for award.

One application, led by ASHRAE, will develop and deliver comprehensive energy code training to building officials as part of a partnership between ODOE, Oregon Building Codes Division, other states, NASEO, ASHRAE, and ICC.

The other application, led by Earth Advantage, will examine pathways to support the adoption of Building Performance Standards in Oregon. Other members of the application included the New Buildings Institute, City of Eugene, City of Milwaukie, and City of Portland.

Home Energy Rebates (HOMES/HEAR)

On July 27, 2023 the Home Energy Performance-Based, Whole-House Rebates (HOMES or HER) and the High-Efficiency Electric Home Rebate Program (HEEHR or HEAR) guidance was released by the U.S. DOE. These two programs will provide single-family and multifamily households with varying discounts for efficiency upgrades and rebates on high-efficiency home appliances and equipment. ODOE is planning for these programs to determine how these rebates will best work with other programs in Oregon and to determine eligibility or potential rebate amounts for any individual or household. It is highly unlikely these rebates will be retroactive. While the application is not due until January 31, 2025, ODOE will prioritize rapidly deploying this program, while ensuring a thorough and efficient implementation design.

Please review our Frequently Asked Questions and answers about these programs. We will update this document as we have new information to share.

In the meantime, federal tax credits may be available for energy efficiency upgrades. Please consult a licensed tax professional for how these tax credits may apply to your circumstances. Interested in a program that isn't listed here? Please sign up for email updates, and as we receive information about new opportunities, we will send out communications. There are many details to these new programs that have not yet been released by federal agencies.

Climate Pollution Reduction Grants - Planning Grants

In April 2023, the Oregon Department of Environmental Quality, in partnership with ODOE and other agencies, submitted an application to the U.S. Environmental Protection Agency for a planning grant under the Climate Pollution Reduction Fund. This planning grant will support the establishment of Priority Climate Action Plans and Comprehensive Climate Action Plans. To learn more about the application and how you can be involved, please see DEQ's webpage for The Climate Pollution Planning Grant. You can also read about the opportunities the Climate Pollution Reduction Fund provides for Oregon in a new release from the U.S. Environmental Protection Agency.

In the future, when ODOE-led components begin, we will provide updates on those specific actions.

Energy Improvements in Rural or Remote Areas Program

On March 1, 2023, the U.S. Department of Energy introduced funding under the Energy Improvements in Rural or Remote Areas Program in the amount of $1 billion over 5 years for both community-scale and large-scale demonstrations to advance clean energy solutions in rural and remote areas. Through a cooperative agreement via a competitive process, selected projects will address regional climate risks with solutions such as microgrids, hydro and marine hydrokinetic power, geothermal for generation and district heating, and more. The first round of $300 million funding will be awarded to projects ranging from $5-$100 million, depending on the scale of the projects. Additionally, selected projects will require a 20-50 percent match, depending on type of applicant. Eligible entities include domestic institutions of higher education, non-profits, for-profits, tribal nations, state and local governments, and incorporated and unincorporated consortia.

Solar for All

ODOE intends to apply for a competitive grant under the U.S. EPA's Solar for All program, made available under the Greenhouse Gas Reduction Fund as part of a Coalition in partnership with Energy Trust of Oregon and Bonneville Environmental Foundation. This grant opportunity can provide funding over a five-year period of performance. The opportunity is focused on providing benefits from solar energy to low-income households and disadvantaged communities. The grant funds can support financial assistance to individual households for solar and storage technology, as well as the enabling upgrades necessary to install solar technology on the residence. The program can support various aspects of solar technology, including community solar programs, workforce development and high-quality jobs, and supporting critical facilities that serve low-income and disadvantaged communities.

The agency submitted a Notice of Intent to the EPA on July 28, 2023 and intends to seek legislative approval to apply for the grant prior to the submission deadline of October 12, 2023.

If you are interested in connecting with ODOE about this opportunity, please email federal.funding@energy.oregon.gov.

More details are available on ODOE's Solar For All program page.

Contractor Training Grant

Related to the Home Energy Rebates through the IRA, an additional allocation of federal formula funds has been made available to the state through Contractor Training Grants (CTG) to aid in workforce development. ODOE intends to apply for these funds to help prepare for the workforce that will be needed to support the influx of home energy upgrades that will be made possible through the Home Energy Rebates program. ODOE is considering a program that will reduce the cost of training contractor employees; provide access to workforce development tools for contractors such as testing and certification; and partner with community organizations to develop and implement an equitable state program. ODOE’s share of the formula grant is $2,028,480 and the application is due September 30, 2023.

Energy Auditor Training

ODOE anticipates the opportunity to apply for an additional grant specifically seeking to grow the workforce needed to assist with energy projects. Under the IIJA, there is an opportunity anticipated for training energy auditors. At this time, ODOE is learning more about energy workforce needs and opportunities to determine high-need areas while we await more information on this forthcoming grant from U.S. DOE.

Drive and Ride Electric

The Joint Office of Energy and Transportation through the US Department of Energy recently opened the Ride and Drive Electric Opportunity. This opportunity supports five different topic areas related to electric vehicles and EV workforce development activities. ODOE and ODOT are currently exploring Topic Area 1: Enhancing EV Charging Resiliency and how this topic area could support current work related to electric vehicle resiliency at both state and local levels.

We encourage interested parties to review the Funding Opportunity Announcement and reach out to Jessica.Reichers@energy.oregon.gov if you have specific thoughts on how a potential application may benefit Oregonians. Applicants are not limited to state agencies and many types of partnerships and projects could be supported with these funds. Concept papers are due June 16, 2023, at 5pm (EST).

Tax Incentives

There are numerous federal tax incentives available under the Inflation Reduction Act. These tax credits may be available for individual consumers who make qualifying purchases (see 25C Non-Business Energy Property/Energy Efficient Home Improvement Credit and 25 D Residential Clean Energy Credit) and programs for businesses (see the 179D Energy Efficient Commercial Buildings Deduction and the 45L Energy Efficient Home Credit). If you are interested in learning more about these incentives and credits, please review the most recent guidance from the Internal Revenue Service.

We recommend you consult with a licensed tax professional for information which pertains to your specific circumstances.

Other Recent Energy-Related Funding Opportunities of Interest to Oregonians
(click to expand information)

Maintaining and Enhancing Hydroelectricity Incentives

The US DOE is accepting letters of intent and applications to provide incentive payments for capital improvements directly related to improving grid resilience (including the addition of energy storage such as reservoir capacity, pumped storage hydropower, and batteries) and dam safety and related to environmental improvements.

Eligible applicants are limited to: “An owner or authorized operator of an existing facility that is licensed or has received an exemption from licensing from FERC pursuant to the Federal Power Act (16 U.S.C. 791a et seq.) or is a hydroelectric project constructed, operated, or maintained pursuant to a permit or valid existing right-of-way granted prior to June 10, 1920, or a license granted pursuant to the Federal Power Act prior to November 15, 2021, may apply for incentive payments for maintaining and enhancing its facility."

Bipartisan Infrastructure Law Energy Improvement in Rural or Remote Areas Fixed Award Grant Program

The US DOE seeks applications for fixed award projects that benefit rural or remotes areas in resilient clean energy objectives such as installations of microgrids, substation improvements, and energy-efficiency improvements for community owned buildings. A rural or remote area under this program is defined as a “city, town, or unincorporated area that has a population of not more than 10,000 inhabitants." This Funding Opportunity Announcement (FOA) will provide $50 million in total awards ranging from $500,000 to $5 million and is open to state and local government entities; Indian Nations (DOE Order 144.7, 7.a); non-profit entities; for-profit entities; institutions of higher education; and consortia.

Empowering Rural America (New ERA)

Beginning on July 31, 2023, the USDA will open an application process starting with letters of interest for a new program that will distribute $9.7 billion in funding under the Inflation Reduction Act. As stated by USDA, “Funds can be used to make energy efficiency improvements to eligible generation and transmission systems, to purchase, build, or deploy renewable energy, zero-emission systems, carbon capture storage systems, or to purchase renewable energy. The New ERA program is designed to be flexible. The program prioritizes greenhouse gas reductions rather than requiring the use of specific technologies." The program offers both loans (with fixed interest rates as low as 2%) and grants for qualifying projects and entities.

Entities eligible to receive this funding include: 1) existing or former USDA Rural Utilities Service borrowers; 2) borrowers of the former Rural Electrification Administration; 3) rural electricity cooperatives that serve predominately rural areas; and 4) wholly or jointly owned subsidiaries of rural electric cooperatives.

Powering Affordable Clean Energy (PACE)

Beginning on June 30, 2023, the USDA will accept letters of interest for a new $1 billion program that provides loans - portions up to 60% which may be forgivable - to finance wind, solar, hydropower, geothermal, or biomass renewable energy projects and related energy storage.

These loans are available to eligible applicants “that generate electricity for resale to residents in both rural and nonrural areas. However, at least 50% of the population served by your proposed energy project must live in communities of 20,000 or fewer."

Eligible entities include: 1) corporations, states, and territories, along with their subdivisions and agencies; 2) municipalities; 3) utility districts; 4) cooperatives; 5) non-profits; 6) Indian Tribes; 7) Alaska Native, regional, or village corporations; and 8) limited liability companies or other for-profit entities organized under the laws of any U.S. state or territory.

Public Engagement Opportunities

ODOE is working to request funding as new opportunities arise. Please check back frequently for updates for individual programs.

If you would like to sign up to receive email updates related to these activities, please subscribe to our Federal Funding updates list.

Meeting Details:

Date/Time	Meeting Materials
Home Electrification and Appliance Rebates Deep Dive October 11, 2023 2 – 4 p.m. PT Join online via WebEx (recommended) Password: Energy Or join by phone: 408-418-9388, Access Code 234 711 48287	Home Energy Rebates FAQ Home Energy Rebates Questionnaire
Home Efficiency Rebates Deep Dive October 10, 2023 2 – 4 p.m. PT Join online via WebEx (recommended) Password: Energy Or join by phone: 408-418-9388, Access Code 234 409 94975	Home Energy Rebates FAQ Home Energy Rebates Questionnaire
Home Energy Rebates Kick-Off October 4, 2023 2 - 3:30 p.m. PT Join online via WebEx (recommended) Password: Energy Or join by phone: 408-418-9388, Access Code 234 947 92633	Home Energy Rebates FAQ Home Energy Rebates Questionnaire
Webinar: Solar for All (SFA) Overview August 8, 2023 2:30-4:30 p.m. Meeting Recording	Meeting Presentation Weigh in on program design through our online comment portal.
U.S. Department of Agriculture Webinars on Inflation Reduction Act Programs to Advance Clean Energy Initiatives in Rural America June – August 2023 Multiple Webinars	More Details
Eastern Oregon Open House on Preventing Outages and Enhancing the Resilience of the Electric Grid Wednesday, May 24, 2023 10 a.m. - noon Meeting Recording	Meeting Agenda Meeting Presentation Recent Opportunities for Consumer-Owned Utilities FAQ on Build America Buy America Act FAQ on Justice 40 FAQ on National Environmental Policy Act FAQ on Davis-Bacon Act
Western Oregon Open House on Preventing Outages and Enhancing the Resilience of the Electric Grid Tuesday, May 23, 2023 10 a.m. - noon Meeting Recording	Meeting Agenda Meeting Presentation Recent Opportunities for Consumer-Owned Utilities FAQ on Build America Buy America Act FAQ on Justice 40 FAQ on National Environmental Policy Act FAQ on Davis-Bacon Act
ODOE Webinar: Energy Efficiency & Conservation Block Grant (EECBG) Program Listening Session Tuesday, April 25, 2023 Meeting Recording	Meeting Presentation Weigh in with your suggestions on EECBG funding on our online portal by April 28.
U.S. Department of Energy Informational Webinar on the Energy Improvements in Rural or Remote Areas Program Wednesday, March 29, 2023 Register Here	More details
Public Hearing: Grid Resilience Funding Wednesday, March 15, 2023 Meeting Recording	Hearing Presentation ODOE Draft Proposed Program Narrative for IIJA Grid Resilience Weigh in with your comments and suggestions on grid resilience funding on our online portal by March 17. Prompting Questions for Public Comments
ODOE Webinar: Federal Funding Update Wednesday, February 15, 2023 2 - 3:30 p.m. Meeting Recording	How ODOE is working to bring federal dollars to Oregon Meeting Presentation
U.S. Department of Energy Public Roundtable on The Inflation Reduction Act Residential Energy Rebates and Contractor Training Programs January 12, 2023, 1 p.m. - 2:30 p.m. ET Register Here	The U.S. Department of Energy is hosting a roundtable open to the public to inform plans for the home energy rebate programs and contractor training funds.
Virtual Workshop for Oregon Stakeholders: Regional Clean Hydrogen Hubs Friday, September 16, 2022 9 a.m. - 12:00 p.m. Meeting Recording	Meeting Presentation Agenda
Public Hearing on Application for Federal Funding to Enhance Oregon's Grid Resilience Wednesday, August 31, 2022 - 2 p.m. Meeting Recording	Meeting Presentation Slides Draft Program Narrative for IIJA Funding Comment Portal (comments due September 2) List of prompting questions in the Portal Attendee List
IIJA Informational Webinar Wednesday, July 20, 2022 6 - 7 p.m. Meeting Recording	Prompting Questions/Input Guide Comment Portal Presentation FAQs
IIJA Informational Webinar Tuesday, July 12, 2022 1 - 2 p.m. Meeting Recording	Prompting Questions/Input Guide Comment Portal Presentation FAQs
Workforce Development & Supply Chain Challenges and Opportunities March 16, 2022	March 16, 2022 Meeting Summary & Presentation