Energy Efficiency and Conservation Block Grant Program

The State of Tennessee Energy Efficiency and Conservation Block Grant Program is administered by the Tennessee Department of Environment and Conservation Office of Energy Programs, with funding originating from the U.S. Department of Energy Energy Efficiency and Conservation Block Grant Program authorized through the Infrastructure Investment and Jobs Act. The federal EECBG program assists states, local governments, and Tribes with strategies that reduce energy use and improve energy efficiency. Tennessee's program is intended to assist local governments with strategies and projects that improve energy efficiency and community resiliency while maximizing benefits to local communities. TDEC OEP allocated a total of $4,607,296 for subawards, consisting of $2,094,241 from Tennessee's IIJA EECBG formula funding allocation and $2,513,055 from the State's IIJA Revolving Loan Fund Capitalization Grant Program formula allocation that may be used for grants and technical assistance. The program has awarded grants to FY2025 distressed counties in Tennessee as determined by the Appalachian Regional Commission. The allocation methodology considers energy burden, the number of high-need buildings such as Title I schools and affordable housing properties on a per-capita basis, and the TDEC Ability to Pay Index. For grant and technical assistance eligibility, a grantee must conduct a majority of its business in Tennessee, own or operate one or more commercial buildings or commercial space within a multi-function building, and have fewer than 500 employees. The program focuses on county-owned commercial buildings in distressed counties that serve or will serve multi-use purposes supporting community resilience or that are considered critical facilities. Examples include K-12 schools, government-owned hospitals, emergency management facilities, and community centers, including facilities that may serve as emergency shelters or staging areas during response and recovery efforts. TDEC OEP supports grantees in applying for 40 to 60 hours of no-cost technical assistance through the U.S. Department of Energy Energy to Communities Expert Match Program. After receiving this technical assistance, a grantee provides TDEC OEP with a proposed list of facilities for energy audits. Energy audits are conducted at no cost only after TDEC OEP approval. Any retrofit or upgrade reimbursed by the grant must be recommended by the applicable energy audit. Qualifying audits must assess energy consumption, identify lifecycle cost-effective opportunities, identify peak demand and major contributing energy sources, recommend controls or management systems, and estimate potential energy and cost savings using U.S. DOE-approved software. Eligible upgrades must be lifecycle cost-effective, improve occupant comfort, energy efficiency, or air quality, and reduce energy intensity or improve energy-use control and management during peak periods. Recommended upgrades and retrofits require written approval from TDEC OEP before related procurement begins or work is performed. Grantees must comply with applicable federal and state procurement requirements and obtain prior TDEC OEP approval before procuring equipment or services under the Grant Contract. All funded projects are treated as public infrastructure and are subject to Build America, Buy America requirements, including applicable domestic-content requirements for iron, steel, manufactured products, and construction materials. Construction, alteration, or repair work is also subject to Davis-Bacon prevailing-wage requirements. Grantees must address applicable National Environmental Policy Act, National Historic Preservation Act, floodplain and wetland review requirements, and Title VI requirements. No project work may commence before TDEC OEP approval. There is no grantee cost match requirement. Payments are made on a reimbursement basis for actual costs that are reasonable, allowable, allocable, within the Grant Budget, and incurred during the Grant Contract period. Reimbursement requests may be submitted no more frequently than monthly and must contain the required supporting documentation. Expenses incurred before the Grant Contract start date are not reimbursable. Grantees have 24 months from the effective date of the Grant Contract to complete their projects, although no-cost extensions may be evaluated case by case. Required monitoring and compliance activities include mandatory workshops or webinars, site visits, record retention, quarterly Performance Reports due January 15, April 15, July 15, and October 15 during the Grant Contract term, financial reporting, applicable NEPA and NHPA reporting, weekly Davis-Bacon payroll reporting during construction, and semiannual Davis-Bacon reporting. The November 2025 program manual states that TDEC OEP has already awarded grants to the applicable FY2025 distressed counties and does not provide an application opening date, closing date, pre-application deadline, future application cycle, or recurring solicitation schedule. Accordingly, no future application deadline or recurrence is stated in the source. The manual also does not state individual award minimums, individual award maximums, the number of awards, or a named list of award recipients. Communications concerning the application and award process are directed to the Office of Energy Programs Energy Efficiency and Conservation Block Grant at the Tennessee Department of Environment and Conservation, care of Angela McGee. The program email is TDEC.OEP@tn.gov and the program telephone number is 615-852-0131.

Prioritize county-owned multi-use or critical facilities that support community resilience; use E2C technical assistance and the required energy audit to identify qualifying measures; select lifecycle cost-effective upgrades that improve energy efficiency, comfort, or air quality and reduce energy intensity or peak demand; obtain written TDEC OEP approval before procurement or project work; maintain BABA, Davis-Bacon, NEPA, NHPA, Title VI, procurement, invoicing, and reporting compliance.