How ODOE is Working to Bring Federal Funds to Oregon
The 2021 Infrastructure Investment & Jobs Act and the 2022 Inflation Reduction Act are making unprecedented investments in clean energy, energy efficiency, and greenhouse gas reduction activities around the country. The Oregon Department of Energy is working hard to ensure that Oregon is well-positioned to receive and leverage this funding in support of the state’s energy policies and priorities – and to do so in a way that improves the lives of Oregonians. While many details of the federal funding opportunities are still being determined by our federal partners at the U.S. Department of Energy and U.S. Environmental Protection Agency, ODOE is already preparing to bring funding to Oregon to support several priorities over the coming years.
ODOE has begun engaging with our sister agencies, energy stakeholders, Tribes, and the public on pursuing these opportunities so that we are ready to move quickly when US DOE and US EPA release additional information and funding opportunity announcements. We have hosted two public webinars, meetings with our Energy Advisory Workgroup, and numerous one-on-one and subject-specific conversations. During those engagements, ODOE has indicated that our strategy for identifying opportunities and spending funds will be guided by Oregon’s climate and energy policies and objectives, as well as the agency’s strategic plan and authorizing statutes. ODOE will prioritize seeking funds that help Oregonians make informed decisions and maintain a resilient and affordable energy system. We will use the funding to advance solutions to shape an equitable clean energy transition, protect the environment and public health, and responsibly balance energy needs and impacts for current and future generations. During our outreach and engagement activities on federal funding, ODOE received input from stakeholders and the public on other considerations for federal investments. Taking this feedback into account, ODOE is committed to:
Considering equity at every step, including geographic diversity. This will help ensure that the funds comply with the Biden-Harris Administration’s Justice40 initiative to distribute at least 40% of the benefits to disadvantaged communities.
Coordinating with tribal governments and communicating clearly, inclusively, and efficiently to ensure stakeholders and the public are informed and supported, and that they participate in federal funding opportunities.
Where possible and internal resources allow, providing technical assistance to build community capacity and support grant recipients.
Building cross-agency partnerships to leverage expertise and support historically underinvested work to further energy and climate goals and to provide other community benefits.
Taking advantage of high-priority funding opportunities while ensuring quality work that puts every available dollar to its best use.
Over the next year, ODOE will be focused on the following federal funding opportunities:
Energy Planning and Analysis
The state has applied to US DOE for $5.6 million under the IIJA State Energy Program, a formula grant program that supports the agency’s work in planning, research, analysis, and programs that promote energy security, energy efficiency, renewable energy, resilience, and sustainable transportation. This funding is foundational to the agency’s ability to educate the public, inform decisionmakers, and strengthen our ability to engage and provide services to environmental justice and disadvantaged communities.
Timing: ODOE submitted an application to U.S. DOE in December 2022 and expects to receive funding in the first quarter of 2023.
Grid resilience
Population growth and development in forested areas, forest management practices, and climate change have amplified wildfire risk in Oregon. Fires and other natural and human-made disasters pose direct and indirect risks to Oregon’s energy systems and assets, and threaten the sector’s ability to provide safe, reliable, and affordable energy to support businesses, residences, organizations and emergency responders. Failure of these systems can also harm public health and the economy. ODOE is eligible for $50 million in funding over five years to help make Oregon’s electric grid more resilient. Working closely with the Oregon Public Utility Commission, ODOE is engaging the state’s utilities, other interested parties, and the public in preparing an application to US DOE that will improve the all-hazards resilience of the electric grid against disruptive events; generate the greatest community benefit in reducing the likelihood and consequences of disruptive events; advance US DOE’s equity, environmental, and energy justice priorities, including the Justice40 initiative; and invest in Oregon’s workforce.
Timing: ODOE will be submitting an application for this funding to U.S. DOE by March 31, 2023 and expects to receive funding in the summer of 2023. ODOE is also participating in conversations with other states in the region to seek additional competitive funding for grid resilience under the Grid Resilience and Innovation Partnership program at US DOE.
Energy Efficiency and Electrification
Energy efficiency is an important decarbonization strategy that can also help make homes more comfortable and save Oregonians money. The state’s strong building codes ensure that new construction is energy efficient, but existing buildings hold the greatest potential for reducing energy consumption and associated greenhouse gas emissions in the building sector. ODOE will bring $113 million to the state to help Oregonians make their homes and businesses more efficient, comfortable, and sustainable. The HOMES and HEEHRA programs, funded by the Inflation Reduction Act, will provide rebates for energy efficiency retrofits and upgrades and electric and energy efficient appliances like heat pumps to help families stay warm in the winter and cool in the summer. These rebates are targeted to those who need help the most – Oregonians with low and moderate incomes. ODOE is working closely with Oregon Housing and Community Services, other agencies, and the Energy Trust of Oregon to make sure these programs are designed with consumers and disadvantaged communities in mind and build on existing state and local programs.
Timing: ODOE will be submitting an application to U.S. DOE for this funding in or around the summer of 2023 and expects to receive funds in late 2023 or early 2024.
Workforce Development
ODOE has heard from the energy industry and communities across the state that there is a need for energy auditors, contractors, and other energy professionals and tradespeople – especially in rural parts of the state.
Timing: In or around the first quarter of 2023, ODOE will be applying for a competitive grant under the IIJA to support energy auditor training. We will also be looking for ways to channel additional funding under IIJA and IRA to existing workforce development programs in the state.
Jump-starting the clean hydrogen economy
Clean hydrogen is increasingly being considered as a decarbonization strategy for sectors where electrification is either too costly or not technically feasible. Along with the Washington State Department of Commerce, ODOE is participating in the Pacific Northwest Hydrogen Association (PNWAH2A), a joint public-private partnership effort, in applying for funding from US DOE to host a hydrogen hub in the NW. The hub would leverage the PNW’s clean electricity resources to create a clean hydrogen economy in the region.
Timing: The PNWH2A submitted a concept paper to U.S. DOE in November 2022, and was one of 33 organizations (out of a total 79) to receive official “encouragement” from the US DOE to submit a full application in April 2023.
Investing in Communities
Communities around Oregon are pursuing climate and clean energy plans. The IIJA included new funding for the Energy Efficiency and Conservation Block Grant (EECBG) Program, which provides grants to states, local governments, and Tribes to help them implement strategies to reduce fossil fuel emissions, reduce total energy use, and improve energy efficiency. Some of these funds will go directly to larger cities and counties in the state and other funding will come through ODOE to smaller cities and counties. This program presents a significant opportunity to realize energy efficiency gains in Oregon, and ODOE looks forward to coordinating directly with communities on this funding.
Timing: ODOE currently anticipates that state and local governments slated to receive a direct allocation will be able to apply in winter or spring 2023.
Greenhouse gas reduction planning and implementation
The IRA includes $5 billion for states to plan and implement projects that reduce or avoid greenhouse gas emissions and other air pollution. ODOE is working with DEQ and other state agencies to bring some of this funding to the state to support Oregon’s existing greenhouse gas reduction programs and policies. An additional $27 billion in funding is also through the IRA’s Greenhouse Gas Reduction Fund. ODOE is involved in conversations with public and private partners on how Oregon can access those funds, which may involve setting up a green bank in the state to offer low-cost financing for clean energy projects.
Timing: Applications for these two programs will likely be due in the first half of 2023.
In addition to receiving and distributing funding from the federal government, ODOE is also working to be a resource for communities that may be eligible for funding directly. Our federal funding website includes up-to-date information on funding opportunity announcements and other information from the federal government, including clean energy tax credits. ODOE hosts regular conversations with communities and stakeholders to coordinate on opportunities.
To maximize the benefits of this federal funding to the state, ODOE will focus early in 2023 on preparing the agency to leverage federal funds to advance Oregon’s climate and clean energy objectives and to deliver important services to Oregonians. We will work to strengthen the agency’s infrastructure and data systems to be able to receive, track, and disperse federal funding. We are working internally to determine what additional resources and staff we may need to meet the objectives of federal funding and to cover state match requirements. Through all of this, we’ll be engaging with stakeholders and community members, listening and learning about how we can provide the best customer service and get Oregonians what they need to thrive in the energy transition. We are recruiting for a project manager to help coordinate this work internally and with external partners. To assist our work with communities, in our 2023-2025 budget, we are seeking a new position to help environmental justice communities navigate these opportunities – connecting the communities that need help the most with available opportunities as well as providing them technical support.
ODOE looks forward to working with our state and local partners to ensure that the IIJA and IRA funding can help Oregon achieve a safe, equitable, clean, and sustainable future.