U.S. Energy Department Announces $425 Million for State Energy Programs

The U.S. Energy Department on Aug. 26 announced $425 million in formula funding through the State Energy Program, SEP, to help states expand their clean energy programs and ramp up deployment under the 2021 Infrastructure Investment and Jobs Act. The funding is expected to create jobs, boost financial growth, lower individuals’ energy prices, and reduce carbon emissions. Formula funding will be used to distribute grants, which will require states and territories to explain how their plans will benefit the program’s objective. The recently passed Inflation Reduction Act further empowers the department to make investments in climate, clean energy, and environmental justice, while creating new job opportunities and reducing energy costs. The initiative is expected to transform SEP grant funding that will be increased nearly tenfold from the recent funding levels.

SEP encourages activities within states that are customized to their unique resources and goals. The initiative provides funding and technical assistance to foster state-led programs, enhance energy security and increase energy affordability. Since 2010, the program has offered over $540 million to states and territories through the formula and competitive funding while retrofitting 45,000 buildings with energy efficiency upgrades and creating or retaining more than 43,000 jobs.

The funding will enable states to finance a variety of projects and activities, including installing renewable energy systems, building clean energy infrastructure, demonstrating clean energy technology, improving energy efficiency, and developing critical workforce development programs. States will also receive technical assistance, from the agency’s Office of the Under Secretary for Infrastructure, to facilitate projects including community energy planning, transmission & distribution, grid expansion, energy security, manufacturing, and integration of clean energy technologies.

The initiative supports the goal of providing carbon-free electricity in the U.S. by 2035 and a net zero economy by 2050, as well as providing significant benefits to underprivileged communities.