LBE Equipment Decarbonization Grant

Are you an executive branch agency, public institution of higher education, or a quasi-public authority interested in decarbonizing your space heating, water heating, landscaping, or kitchen equipment. Get more information about the Equipment Decarbonization Grant Program here.

Grant Program Information and Eligibility

Leading by Example Executive Order 594: Decarbonizing and Minimizing Environmental Impacts of State Government (EO 594), sets goals and requirements that will accelerate the decarbonization of fuels used to heat and cool state facilities, assist in demonstrating new technologies and strategies necessary to meet the Commonwealth’s energy goals, and quicken the shift to electric heating and vehicles. The 2024 Leading by Example Equipment Decarbonization Grant Program (Program) for eligible state entities serves to support the affordability of decarbonizing Commonwealth-owned facilities and/or their respective operations; it is thereby designed to address funding gaps for small to medium heating system and facility equipment electrification projects.

The Program provides necessary funding to deploy efficient electric solutions at existing state government facilities after accounting for other applicable funding sources (e.g., utility incentives) in order to increase project cost-effectiveness and feasibility. In addition, the Program helps familiarize state facility staff with decarbonization technologies and supports a growing workforce focused on these technologies, increasing the likelihood that these technologies will be cost-effectively expanded across more locations in the future. 

Eligible projects and grant amounts can be found below: 

Grant Project Category	Base Grant Amount	Potential Grant Amount Adder(s)
Space Conditioning System	Up to 75% of the project cost	25% Gateway Municipality Adder
Service Water Heating	Up to 75% of the project cost	25% Gateway Municipality Adder
Facilities Maintenance, Operations, and/or Landscaping Equipment	Up to 75% of the project cost	25% Gateway Municipality Adder Pollinator Habitat Creation Adder
Commercial Kitchen Equipment	Up to 75% of the project cost	25% Gateway Municipality Adder

Eligible costs under the Program include but are not limited to:

• Equipment procurement 
• Infrastructure upgrades
• Screening
• Installation costs
• Oil tank removal 
• Installation costs and services

For applicants requesting the Pollinator Habitat Creation Adder as part of landscaping projects, habitat site preparation and associated materials or services are eligible. Potential applicants with questions should contact DOER about what activities are allowable.

Relevant Application Information
Schedule	Applications will be accepted and reviewed on a rolling basis until allocated funds are awarded.
PON Response Deadline	June 30, 2027
Additional Information	Projects must comply with all program requirements detailed in the PON on COMMBUYS.

Potential applicants are encouraged to contact [e-mail] prior to submitting a grant application to confirm eligibility and availability of funds.

Application Process and Required Documents

Process

1. Applicants must first submit a Statement of Interest Form ("LBE Decarbonization Grant Statement of Interest Form" in COMMBUYS) to DOER via email at [e-mail] and [e-mail] prior to applying to the Program; such Statements of Interest shall outline proposed project, including but not limited to the estimated emissions reduction impacts.
2. After a Statement of Interest Form is preliminarily approved in writing by DOER, applicants may move ahead with soliciting project quotes (if not already solicited) and/or submitting the Grant Application Form ("LBE Decarbonization Grant Program Application Form PON-ENE-2024-018" in COMMBUYS). Project cost quotes must be received prior to formally applying to the Program.
3. The PON indicates which project types are subject to Federal Build America, Buy America Act (BABAA) requirements. For such projects, the BABAA waiver process should be pursued if the quotes from vendors show either an unreasonable increase in cost or a lack of availability. Applicants are encouraged to work with DOER to compose project waivers.  
4. For applicable projects, an approved BABAA waiver must be received by U.S. Department of Energy prior to the finalization of a grant agreement between DOER and the applicant. 
5. When an applicant has selected a vendor (and received an approved BABAA waiver, if applicable), the selected cost proposal should be submitted to DOER along with the Grant Application Form as outlined below.  

Required Materials

Grant submissions must demonstrate that the project meets the eligibility criteria described in Section 3 and Section 4 of the PON. DOER reserves the right to waive any requirements should applicants demonstrate sufficient rationale for doing so.

Required documentation includes but may not be limited to:

• Statement of Interest Form ("LBE Decarbonization Grant Statement of Interest Form" in COMMBUYS). 
• Grant Application Form ("LBE Decarbonization Grant Program Application Form PON-ENE-2024-018" in COMMBUYS). 
• A proposal from a vendor outlining the selected proposal for which the grant application will be supporting, including equipment and installation costs described in the grant application form. If applicants are not able to submit a proposal from a vendor, they must submit detailed cost estimates for the project in a separate attachment, including information on selected vendor, procurement method, equipment being installed, how costs were determined, and a breakdown of actual costs for equipment, installation, and all other elements referred to above. 

Build America, Buy America Required Materials

Heat pump and water heating projects, which are subject to federal BABAA requirements, may seek a waiver based on lack of market availability or prohibitive cost. DOER has developed a LBE Equipment Decarbonization Grant Program BABAA Waiver template document for state entities to use; DOER will submit completed waiver request forms to the US DOE on behalf of applicants.  

The approval or rejection of a BABAA waiver by the U.S. DOE may take up to 90 days. If applicants must adhere to BABAA, they should ensure to build this process into their project timeline.

How to Apply

Both the Statement of Interest Form and Grant Application Form must be submitted electronically to [e-mail] and [e-mail].  

The full Program Opportunity Notice and Attachments are available here: LBE Equipment Decarbonization Grant on COMMBUYS