The Biden administration announced on Tuesday morning that it will be allocating $250 million in formula funding for energy efficiency upgrades and retrofits of commercial and residential buildings.
The Department of Energy will be accepting applications for these resources from all 50 states, five U.S. territories and the District of Columbia, through the Energy Efficiency Revolving Loan Fund Capitalization Grant Program — an initiative of the recent bipartisan infrastructure law.
States and territories will be able to use grants to establish what is known as “revolving loan funds” — or pools of capital from which loans can be made for clean energy projects, according to the Energy Department.
Governments can then use these revolving loan funds to invest in energy audits, energy efficiency upgrades and retrofits of residential and commercial buildings.
“Energy efficiency is one of the most cost-effective and easiest to deploy solutions we have to combat climate change and reduce energy costs,” Secretary of Energy Jennifer Granholm said in a statement.
According to the Energy Department, the grant program aims to advance President Biden’s goals of building an equitable and affordable clean energy economy, while promoting energy justice and financial gains for historically disadvantaged communities.
With the funding from this program, states and territories can create or enhance revolving loan fund programs that provide energy efficiency loans to commercial and residential building owners, the statement explained.
Participating states and territories can also leverage capital from private, philanthropic and other sou …