Leading by Example Decarbonization Implementation Grant

Overview of the Leading by Example Decarbonization Implementation Grant Program, which provides financial support for large scale decarbonization efforts at state-owned facilities.

Grant Program Information and Eligibility

Leading by Example Executive Order 594: Decarbonizing and Minimizing Environmental Impacts of State Government (EO 594), directs state government entities to eliminate onsite fossil fuel emissions and maximize onsite renewable energy. EO 594 furthermore directs state entities to prioritize the deployment of battery energy storage wherever possible. 

The 2025 Leading by Example Decarbonization Implementation Grant (“DIG”) Program for eligible state entities supports the affordability of large scale decarbonization efforts at state buildings and campuses. The grant addresses funding gaps to enable or accelerate project implementation, enabling state entities to make significant contributions to both the Commonwealth and EO 594 emissions reduction targets.

The DIG Program prioritizes state sites with dedicated decarbonization plans in place as well as projects that integrate onsite solar PV and/or battery energy storage systems. Depending on the project category, the base grant amount and potential grant adders may vary.  

Grant Program Information
Applicant Eligibility	Any Massachusetts executive agency, state institution of higher education, or quasi-public authority
Total Program Funding Available	$12,500,000
Additional Information	Projects must comply with all Program requirements detailed in the grant’s Program Opportunity Notice (PON) on COMMBUYS

Grant Amounts
Grant Project Category	Base Grant Amount	Potential Grant Amount Adders
Existing Facility Decarbonization	Projects located in investor-owned utility service territories are eligible for up to 40% of total eligible project costs after accounting for other incentives. Projects located in municipal light plant territories are eligible for up to 50% of total eligible project costs after accounting for other incentives. The maximum base grant amount is based on the square footage of conditioned space that will be impacted by the project: If >= 1,000,000 square feet, the maximum grant shall be $7,000,000 If >= 500,000 square feet and < 1,000,000 square feet, the maximum grant shall be $5,000,000 If < 500,000 square feet, the maximum grant shall be $3,000,000	Environmental Justice Adder (+10%) Existing Solar Grant Adder (+2.5%) Existing Energy Storage Grant Adder (+2.5%)
New Construction and Major Renovations	Projects located in investor-owned utility territories are eligible up to 20% of eligible project costs. Projects located in municipal light plant service territories are eligible for up to 30% of eligible project costs. New construction or major renovation projects are limited to a maximum of $2,500,000 per campus or facility, regardless of the square footage impacted, including any adders.	Environmental Justice Adder (+10%) Existing Solar Grant Adder (+2.5%) Existing Energy Storage Grant Adder (+2.5%)

Eligible Projects and Costs

Existing Facility Decarbonization Eligibility:

DIG Program decarbonization funding can be used for equipment, labor, and infrastructure costs associated with the following subcategories, which may include but are not limited to: 

• Actual decarbonization measures, such as building retrofits and heat pump installations, e.g., air and ground-source heat pumps or systems using water or wastewater sources to meet thermal load.
• Project elements necessary to support future decarbonization at the site such as site electrification preparation (e.g., electrical infrastructure upgrades or geo-exchange wells with heat pumps) or envelope improvements (e.g., air sealing and window replacements).
• Other projects that are critical components in reaching broader decarbonization plan milestones.

New Construction and Major Renovations Eligibility:

Eligible costs include all equipment, electrical infrastructure, and installation costs directly associated with the deployment of a large-scale thermal system. This Program does not cover the thermal efficiency measures necessary to comply with the Mass. LEED Plus 2.0 Standard and the Specialized Opt-in code.

Please note: DIG Program funding generally cannot be used to cover costs associated with repairs, deferred maintenance, preventative maintenance plans or extended warranties. Program funds may only be used for labor costs that are separate from in-house staff (e.g., competitively procured vendors). For any questions about project and/or cost eligibility, please reach out to the LBE Division via [e-mail].

Application Process and Required Documents

Applications and supporting documents must be submitted by an eligible state entity and must be sent electronically to DOER via email to [e-mail]. Required grant application materials include:

1. Statement of Interest (SOI)
   1. Applicants must first complete and submit a Statement of Interest Form (“Attachment A” in COMMBUYS) prior to applying for the grant. SOI forms should outline the proposed project, including but not limited to the estimated emissions reduction impacts. DOER will review SOI forms on an ongoing basis and may request additional information from potential applicants within 15 days of SOI receipt as part of this process. Potential applicants will have no more than 15 days to satisfactorily respond, or the SOI will be considered null and void.
2. Application Form
   1. Applicants must complete and submit the Grant Application Form (“Attachment B" in COMMBUYS).
   2. Applicants must also submit a proposal or quote from a vendor outlining the project, including any itemized costs described in the grant application form (e.g., equipment and installation costs). 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, a procurement method, equipment being installed, how costs were determined, and a breakdown of actual costs for equipment, installation, and all other elements required in the PON.
   3. Applicants must provide anticipated schedules for project implementation, including the start and completion dates and expected timeline for project implementation, if known.

Application Schedule

DIG Program funding is to be awarded on a periodic basis through at least one but as many as three separate rounds. Depending on the volume of funding requests and any subsequent grant approvals, the amount of available funding in each round may differ; if all DIG Program funding has been allocated to projects prior to the Round 2 and/or Round 3 deadlines, DOER will notify eligible parties as soon as possible but no later than 30 days prior to the respective Submission Deadline. The following dates are subject to change. DOER reserves the right to re-open this PON if funds are not fully awarded.

Round 1:

• SOI Submission Deadline: July 17, 2025
• Final Application Form Submission Deadline: August 1, 2025
• Grant Review & Approval Period: August 2 – September 1, 2025
• Grant Award Announcement: October 1, 2025

Round 2:

• SOI Submission Deadline: October 15, 2025
• Final Application Form Submission Deadline: November 3, 2025
• Grant Review & Approval Period: November 4 – December 3, 2025
• Grant Award Announcement: January 2, 2026

Round 3:

• SOI Submission Deadline: January 15, 2026
• Final Application Form Submission Deadline: February 2, 2026
• Grant Review & Approval Period: February 3 – March 4, 2026
• Grant Award Announcement: April 3, 2026 

Potential Grant Amount Adders

In no instance may the combination grant adders exceed 15% in addition to the base grant value.

Environmental Justice Adder

An environmental Justice Grant Adder of 10% can be added to the base grant value. When the project location falls within a census block that includes one or more Environmental Justice Populations, the Adder shall apply. Eligibility for the adder can be determined using the statewide Environmental Justice Map.

Existing Solar Grant Adder

Eligible projects that will be co-located with at least 300 kW of existing solar PV arrays on the same parcel are eligible for a 2.5% grant adder.

Existing Energy Storage Adder

Eligible projects that will be co-located with existing battery energy storage on the same parcel are eligible for a 2.5% grant adder. 

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 Decarbonization Implementation Grant on COMMBUYS.