Climate and Energy Resources for State, Local and Tribal Governments

Obtain Resources for Climate & Energy Programs

Resources necessary to support a project or program can take the form of internal or external funding, existing or new staff time, technical expertise, or stakeholder buy-in. While some projects may require new resource streams, other projects can be implemented by reprogramming existing resources or by generating and using fees or cost savings to fund a program (e.g., by reinvesting savings from energy efficiency upgrades, through a fee-for-service program).

Framework pages

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The key steps in this phase are designed to help you identify and pursue the resources needed to support your project or program. It offers two sets of steps, representing two different approaches. The Resources Needed approach is for entities that need additional resources to start or complete an already identified project or program. The Resources Available approach is for entities that want to take advantage of a newly available resource stream to support a new or existing effort. Within each approach, questions will help you determine what resources will satisfy your needs.

Key Steps

Printer IconPrintable Checklist

Obtain Resources FlowchartView Diagram

Outreach diagram

For entities that have already identified a project or program they would like to implement, but need additional resources to start or complete the effort

The exact process for obtaining resources will vary by project and entity. This approach outlines several key steps that are likely to be part of any process to evaluate needs and identify and obtain resources. Although each step is necessary to obtain resources, the scope of each step can be calibrated to your project, the available resources, and your entity’s processes.

  • Step 1: Clearly Define the Effort

    The type, duration, and scope of the effort will determine which resources are needed and appropriate. Use the questions and guidance presented in this step to clearly define the effort. This exercise will provide valuable information when identifying and pursuing resources.

    1. What is the scope of the effort?

      Project: For a project, the scope is limited and specific tasks can be defined upfront (e.g., install green roofs on municipal buildings).
      Program: For a program, the overarching goals and objectives are defined, but specific projects and tasks will evolve over time (e.g., increase community resilience to impacts from rising sea levels).
      A new project that is part of an existing program: The scope is limited, and specific tasks can be defined upfront, in line with the program’s overarching goals, objectives, and framework (e.g., expand a community-wide commercial energy efficiency program to residential energy consumers).

      Visit the Set Goals & Select Actions phase for guidance on how to define goals and actions.

    2. What is the anticipated duration of the effort?

      Short: Less than 1 year.
      Medium: More than 1 year, less than 3 years.
      Long: More than 3 years.
      Keep in mind that many projects take longer than planned. In addition, project or contractual requirements (such as reporting requirements) may continue after the project or contract period ends. Consider including a buffer in your timeline to account for unexpected delays.

    3. What specific activities do you plan to undertake?

      Visit the Set Goals & Select Actions phase for help defining the specific activities planned for this project or program. Remember to account for ancillary activities, such as training or planning meetings.

  • Step 2: Articulate Needed Resources

    Once the effort is clearly defined, articulate the types, amount, and timing of needed resources. Explore the following questions to understand the unique needs of your proposed project or program.

    1. What types and amounts of resources are required? Potential needs may include, but are not limited to, the following.

      Technical expertise: What types of expertise are needed (e.g., renewable energy, energy efficiency, or green roof specialists)?
      Staff time: How much staff time will be required? What points during the project will require additional time?
      Stakeholder buy-in: What level of buy-in is needed? From whom? Are there key stakeholders to engage early in the process? See the Reach Out & Communicate phase for more information on stakeholder engagement.
      Other direct costs: How much funding is required to make any necessary new expenditures for goods (e.g., equipment) and services (e.g., contractor support) to start and complete the program?

    2. Are external resources necessary to supplement the local budget and staff?

      You may not need external resources if the project can be completed using existing staff, equipment, and supplies within the regular work week and within the existing available budget, and/or if the project requires minimal staff time and the additional cost will be offset through savings (short payback period).

    3. What is the schedule for the resource needs?

      Consider what resources are required for start-up activities versus long-term operational activities. How long are resources needed?

  • Step 3: Identify Potential Sources

    There are many potential sources of resources. Be creative and explore a variety of opportunities and options for funding. Technical expertise might be obtained by collaborating with an academic institution, seeking assistance from other departments within your own organization or an external agency, or hiring an expert. Staff time may be found by reallocating existing staff responsibilities, hiring additional staff or contractors, or recruiting interns or volunteers. Partners and community groups can help provide stakeholder buy-in and may have access to otherwise restricted resources. See the Reach Out & Communicate phase for more information.

    Featured Resource: Climate Showcase Communities Design Guide

    EPA developed the Climate Showcase Communities Design Guide to help local climate and clean energy program implementers create or transition to program designs that are financially viable and self-sustaining over the long term. It presents a flexible, adaptable model framework and takes an in-depth look at three focus areas:

    • Creating value for target audiences to generate adequate program revenues
    • Developing effective partnerships that leverage each partner’s strengths to enhance value and create new opportunities
    • Delivering program services that meet the target audiences’ needs, align with organizational strengths and resources, and generate enough revenue to cover costs

    The guide describes lessons, examples, and resources derived from the experience of more than 50 local climate and clean energy programs around the country. It also provides simple worksheets and techniques for analyzing and refining program models.

    The table below describes different funding types, along with a high-level indication of the suitability of each funding type for different types of efforts. Refer to your answers to the questions in Step 1 when reviewing the table. In addition, consider the following questions:

    1. What are the capacity and expertise levels of your entity to manage the funds?

      Managing funds can be complex and time-intensive. When considering resource streams, review the amount and timing of staff time needed to administer the program. If staff time and expertise are limited, you may want to avoid resource streams with cumbersome requirements or reporting requirements that fall during busy times of the year. However, if the entity (and/or its partners) has a sufficiently large operating budget and adequate staff capacity and expertise to comply with requirements, you may be able to consider resources with a high level of required reporting and tracking.

    2. How does the proposed project connect to other projects, programs, and funds within the entity, elsewhere in the state, and at similar organizations outside the state?

      There may be unique resource-related opportunities or challenges based on how the proposed project relates to other activities in the entity and state. For example, there may be an existing funding source that could easily be applied to this new project or there may be institutional knowledge from another program that could help move the project forward more quickly. Conversely, the proposed project may not be eligible for certain funding sources given other ongoing efforts.

    3. What other realities of your entity or organization might eliminate the feasibility of certain funding types?

      For example, there may be insufficient support for increased tax revenue or fees, or there may be borrowing limits above a certain dollar amount.

    4. What is your entity’s fiscal year and how do the schedules for potential sources align?

      If the funding does not use the same fiscal year, you may want to consult with the appropriate decision-makers and financial staff to manage the discrepancy.

    Note that resources from a number of different sources can be used together to cover the cost of a program. For instance, an entity interested in energy efficiency may receive a grant that funds one year of staff time and initial equipment upgrades while energy savings can be captured and reinvested in the program to pay for subsequent staff time and equipment costs.

    Type of Funding Description Ideal for. . .

    Internal Funding (including internal loans and revolving loan funds)

    The operating budget of the city, county, or entity. Obtaining internal funding may require budget reallocation or additional appropriations. A revolving loan fund structure is where all or a portion of payments on the first loans are used to fund subsequent projects rather than being returned to the lender. Revolving loans may require partnering with a bank to manage the loans.

    Project Scope: Project or Program

    Estimated Duration: Any

    Foundations, Non-Profits, For-Profits (including public-private partnerships)

    Organizations at the local, regional, and national level that may be interested, willing, or obligated to fund climate, energy, and sustainability projects.

    Project Scope: Project

    Estimated Duration: Short to Medium

    Local Funding (grant or loan)

    Funds available from local utilities, or city/county governments. Grants will likely have reporting requirements; the extent of required reporting will vary by governing body. Loans require ongoing revenue streams for repayment.

    Project Scope: Project or Program

    Estimated Duration: Short

    State Funding (grant or loan)

    Funds available from a state agency. Grants may have extensive reporting requirements; the extent will vary by state. Loans require an ongoing revenue stream for repayment.

    Project Scope: Project

    Estimated Duration: Short to Medium

    Federal Funding (grant or loan)

    Funds available from a federal agency that come directly from the agency, through the state, or through a local organization such as a metropolitan planning organization (MPO). Grants may have extensive reporting requirements, which will vary by granting agency and based on local requirements that may be layered on top of federal requirements. Loans require repayment.

    Project Scope: Project

    Estimated Duration: Short to Medium

    Performance Based Contract, Energy Savings Performance Contract, Energy Service Agreement , or Energy Service Company (ESCO)

    A partnership between an entity and an energy service company, where the cost of upgrades are paid for by avoided energy expenditures resulting from the upgrades or from the ESCO if the savings fall short of what was guaranteed in the contract. After the term of the contract, subsequent benefits accrue to the entity.

    Project Scope: Project or Program

    Estimated Duration: Short

    Private Equity Finance or Third Party Ownership with a Power Purchase Agreement (PPA)

    When an investor funds all or a portion of the project in return for a share of project ownership or to obtain tax credit. PPAs are often used for solar projects where a third party owns, installs, and maintains the project; the host purchases energy from the owner.

    Project Scope: Project or Program

    Estimated Duration: Medium to Long

    Public Benefit Fund or Tax Revenue

    Funds acquired through a new tax or fee. For example, some cities have introduced a $0.05–0.10 plastic bag tax or fee that contributes to a sustainability fund. Authority to establish taxes and fees varies from state to state and may require council approval or a ballot initiative, depending on the process in your entity.

    Project Scope: Program

    Estimated Duration: Long

    Capacity for Managing Funds: High

    Avoided Energy Expenditures

    Avoided energy expenditures resulting from climate, energy, and sustainability projects that can be reinvested in the project or program.

    Project Scope: Project or Program

    Estimated Duration: Any

    To search for available funding opportunities, visit the following websites:

    You might also consider subscribing to EPA’s State and Local Climate and Energy Newsletter, DOE’s Energy Efficiency and Renewable Energy Newsletter, or to a grants database. Note that some grants databases require a membership fee.

  • Step 4: Select Appropriate Sources

    For each potential resource stream, follow your own entity’s decision-making process to determine whether to pursue resources. As a supplement, or if your entity does not have an existing process, a “go/no-go” process is outlined below. Before you begin the “go/no-go” process, seek a full understanding of what is needed to pursue, manage, and use the resource stream.

    As you select appropriate options to pursue, continue to consider how the resource stream and project fit with other ongoing activities. Be sure to address conflicts and look for collaboration opportunities.

    For each question below, if you answer “Yes,” simply proceed to the next question.

    1. Are we eligible for the identified resources?

      If No: Can we partner with an entity that is eligible? (If yes, move to the next question.)

    2. Do the available resources cover the project's needs, including its full scope and duration?

      If No: Can we develop a sufficient long-term funding plan with supplementary resources (e.g., existing staff time, other resource streams)? (If yes, move to the next question.)

    3. Do the goals of the resource stream align with the goals of our entity and the goals of the project/program?

      If No: Can we refocus the project so it aligns with the goals of the resource stream without contradicting specific goals of the entity? (If yes, move to the next question.)

    4. Do we have the internal capacity to comply with any resource requirements (e.g., reporting requirements) if we win?

      If No: Is it possible to partner with or contract to an entity that would take on the reporting requirements? (If yes, move to the next question.)

    5. Do we have the capacity to apply for the resources in the timeframe required and is the capacity required reasonable?

      If No: Is it possible to partner with another entity that would lead the application process? (If yes, move to the next question.)

    6. Do we have resources to cover any associated additional costs not covered by the available resources (e.g., operation and maintenance costs, pre-contract activities, post-contract activities)?

      If No: Can we obtain the resources to cover additional associated costs? (If yes, move to the next question.)

    7. Are there any legal implications, restrictions, or limits associated with the available resources (e.g., borrowing limits, debt ratios) at the city/county/state level? (In other words, have we read the fine print?) If so, are we able to overcome them?

      If No: Discuss legal concerns or limits with appropriate decision-makers and legal staff. If there are insurmountable legal implications or restrictions, this may not be an appropriate resource stream.

    8. Assess the competition. If we apply, is there a high likelihood that we will be awarded the funds or resources given the competition?

      If No: Consider whether it is worth it to invest the time/resources to apply given the likelihood of success.

    If you answer yes to all of the questions, the available resource stream is likely worth pursuing.

  • Step 5: Pursue Resources

    Once you have selected appropriate sources, it is time to apply for funds, secure resources, and establish needed buy-in. When applying for resources, be sure to:

    • Comply with all applicable internal processes at your entity.
    • Satisfy all application requirements. Importantly, clearly articulate how your proposed project forwards the purpose, goals, and intentions of the resource stream. Make sure any required forms and appendices are included and labeled correctly.
    • Know your competition. Keep in mind the strengths and weaknesses of your known and potential competitors to better frame your own application.
    • Re-engage key stakeholders, including all levels of community leadership, to ensure you have sufficient buy-in and approval. Visit the Reach Out & Communicate phase for more information.

    Ask questions as needed. This might include reaching out to similar communities (e.g., similar in size) that have used this type and/or amount of resources before, or contacting the funding agency to clarify requirements

Printer IconPrintable Checklist

Obtain Resources Available FlowchartView Diagram

Outreach diagram

For entities that want to take advantage of a newly released funding announcement, summer intern, unexpected budget surplus, or other newly available resource

This approach outlines key steps that are likely to be part of the process to take advantage of resources that are available. However, the exact process will vary by project and entity. Although each step is necessary, the scope of each step can be calibrated to your project, the available resources, and your entity’s processes.

  • Step 1: Make a "Go/No-Go" Decision

    When a newly available resource is announced, determine if an application is appropriate. Consider whether the resource type, amount, source, and purpose match your goals and capacity.

    Comply with your own entity’s decision-making process to determine whether to pursue resources. As a supplement, or if your entity does not have an existing process, consider the “go/no-go” questions outlined below. Before you begin the “go/no-go” process, seek a full understanding of what is needed to pursue, manage, and use the resources. As you assess the resource stream, consider how it fits with other ongoing activities.

    For each question below, if you answer “Yes,” simply proceed to the next question.

    1. Are we eligible for the identified resources?

      If No: Can we partner with an entity that is eligible? (If yes, move to the next question.)

    2. Do the available resources cover the project needs, including full scope and duration?

      If No: Can we develop a sufficient long-term funding plan with supplementary resources (e.g., existing staff time, other resource streams)? (If yes, move to the next question.)

    3. Do the goals of the resource stream align with the goals of our entity and the goals of the project/program?

      If No: Can we refocus the project so it aligns with the goals of the resource stream without contradicting specific goals of the entity? (If yes, move to the next question.)

    4. Do we have the internal capacity to comply with any resource requirements (e.g., reporting requirements) if we win?

      If No: Is it possible to partner with or contract to an entity that would take on the reporting requirements? (If yes, move to the next question.)

    5. Do we have the capacity to apply for the resources in the timeframe required and is the capacity required reasonable?

      If No: Is it possible to partner with another entity that would lead the application process? (If yes, move to the next question.)

    6. Do we have resources to cover any associated additional costs not covered by the available resources (e.g., operation and maintenance costs, pre-contract activities, post-contract activities)?

      If No: Can we obtain the resources to cover additional associated costs? (If yes, move to the next question.)

    7. Are there any legal implications, restrictions, or limits associated with the available resources (e.g., borrowing limits, debt ratios) at the city/county/state level? (In other words, have we read the fine print?) If so, are we able to overcome them?

      If No: Discuss legal concerns or limits with appropriate decision-makers and legal staff. If there are insurmountable legal implications or restrictions, this may not be an appropriate resource stream.

    8. Assess the competition. If we apply, is there a high likelihood that we will be awarded the funds or resources given the competition?

      If No: Consider whether it is worth it to invest the time/resources to apply given the likelihood of success.

    If you answer yes to all of the questions, the available resource stream is likely worth pursuing.

  • Step 2: Develop a Plan and Gather Support

    Once you have determined that the available resources are appropriate for your entity, develop a plan to use the resources and gather support from key stakeholders to promote project success.

    Visit the Set Goals & Select Actions phase to develop a plan for a project or program to use the resources. Alternatively, it may make sense to apply this new resource stream to an existing project or program. Develop a project scope and schedule that align with the characteristics of the available resources, including the amount of funding available, the timing of resource availability, the purpose of the resource stream, and any requirements associated with use of the resources. After accounting for the main resource stream, fill in any resource gaps with a plan for acquiring supplemental resources.

    Visit the Reach Out & Communicate phase for more information on gathering support and buy-in from key stakeholders in the community, political leaders, and partners. Consider engaging key stakeholders in the development of your resource plan.

  • Step 3: Pursue Resources

    Once you have developed a plan for the available resources, pursue them. When applying for resources, be sure to:

    • Comply with all applicable processes within your organization.
    • Satisfy all application requirements. Importantly, clearly articulate how your proposed project forwards the purpose, goals, and intentions of the resource stream. Make sure any required forms and appendices are included and labeled correctly.
    • Know your competition. Keep in mind the strengths and weaknesses of your known and potential competitors to better frame your own application.
    • Re-engage key stakeholders, including political representatives, to ensure you have sufficient buy-in and approval. Visit the Reach Out & Communicate phase for more information.
    • Ask questions as needed. This might include reaching out to similar communities (e.g., similar in size) that have used this type or amount of resources before, or contacting the funding agency to clarify requirements.

Case Studies

City of San José, California: Energy Fund (4 pp, 186 K, About PDFExit
Best practices that describe how a $4 million Energy Efficiency and Conservation Block Grant was leveraged to provide ongoing support for energy efficiency and renewable energy projects at municipal facilities.

 

Home Energy Affordability Loan
A presentation from an EPA webcast that describes the HEAL program, which works with employers to allow employees to pay for upgrades through payroll deductions.

 

Self-Funded Energy Savings Performance Contracting Programs (17 pp, 657 K, About PDF) Exit
A snapshot from the U.S. Department of Energy of how four states (Washington, Kansas, Pennsylvania, and Louisiana) used income fees to self-fund energy efficiency efforts.

 

Using Qualified Energy Conservation Bonds to Fund a Residential Energy Efficiency Loan ProgramExit
A policy brief from the Laurence Berkeley National Laboratory describing how Saint Louis County, Missouri, issued $10 million of these bonds to finance their SAVES residential energy efficiency loan program.

 

Virgin Islands Energy Alliance ProgramExit
A case study from the National Council for Public-Private Partnerships about how the U.S. Virgin Islands established a public-private partnership to explore alternatives for energy conservation and renewable energy generation.

Tools and Templates

EPA's Financing Program Decision Tool
Tool to assist state and local governments in identifying appropriate energy efficiency and renewable energy finance program options.

 

ENERGY STAR Cash Flow Opportunity Calculator (XLS) (415K, Exit)
Excel tool that estimates how much new energy efficiency equipment can be purchased with anticipated savings; compares financing options for energy efficiency purchases; and evaluates project economics under different interest rates.

 

DOE's Clean Cities Financial OpportunitiesExit
A U.S. Department of Energy portal to funding opportunities related to the reduction of petroleum consumption in transportation.

 

Environmental Grants & LoansExit
A website maintained by the U.S. Small Business Administration with links to help find financial resources for energy efficiency, environmental products and technologies, and environmentally friendly businesses.

 

Writing Successful Proposals (106 pp, 6.10 M, About PDF) Exit
Louisiana’s Grant Writing Guide that provides clear and comprehensive guidance for grant writing. Though developed for small, community-based organizations in Louisiana, the guidance is applicable to entities across the country.

Further Reading

EPA’s Local Government Climate and Energy Strategy Series
A suite of guides that provides an overview of local government emission reduction strategies. In each guide, Chapter 7 presents information about costs and financing opportunities.

 

EPA's Clean Energy Financing Programs
A Decision Guide for States and Communities to help government entities understand and make decisions to support appropriate renewable energy financing programs for their jurisdiction.

 

EPA’s Climate Showcase Communities Local Climate and Energy Program Model Design Guide
A guide that covers value creation and program revenues as well as creating effective partnerships.

 

Revolving Loan Funds (19 pp, 555 K, About PDF) Exit
Best practices for state and local officials published by the National Renewable Energy Laboratory for establishing and working with revolving loan funds.

 

How to Develop and Write a Grant ProposalExit
A Congressional Research Service report that provides an introductory overview of how to write a proposal for government and private foundation grants.

Acknowledgements:
EPA would like to acknowledge Kathy Boyer (Triangle J Council of Governments), Jeff Hughes (UNC Chapel Hill Environmental Finance Center), Ari Messinger (Cherry Hill Township, New Jersey), and Sharon Procopio (Denver Energy Challenge) for their valuable input and feedback as stakeholder reviewers for this page.