Illinois Climate Pollution Reduction Grants: Stretch Code Adoption Grant Application - Third Round

In July 2024, Illinois was announced as one of the recipients of an award under the Climate Pollution Reduction Grant program, created by the Inflation Reduction Act. The U.S. Environmental Protection Agency (US EPA) awarded $430,251,378 to the State of Illinois to implement a variety of programs over the five-year grant period (2024-2029). Stretch Code Adoption Grants are one of these programs. The 2023 Illinois Stretch Energy Code, established under 20 ILCS 3125/55, took effect on January 1, 2025. Illinois developed this stretch code as part of its broader efforts to improve energy efficiency, reduce greenhouse gas emissions, and align with the state’s ambitious climate goals. By adopting a stretch energy code, municipalities have the opportunity to exceed the baseline statewide energy efficiency requirements.

The Stretch Building Code Grant Program is designed to facilitate the adoption, implementation, and enforcement of the Illinois Stretch Energy Code by supporting units of local governments with the necessary resources to navigate this process. The program will provide financial support for education, community engagement, and technical assistance to ensure that municipalities are well-equipped to integrate the stretch code into their regulatory frameworks. Over the five-year program period, the goal is to have 90 municipalities and local government units adopt the Illinois Stretch Energy Code, contributing to statewide emissions reductions and greater energy efficiency in both new and existing building stock.

In July 2024, Illinois was announced as one of the recipients of an award under the Climate Pollution Reduction Grant program, created by the Inflation Reduction Act. The U.S. Environmental Protection Agency (US EPA) awarded $430,251,378 to the State of Illinois to implement a variety of programs over the five-year grant period (2024-2029). Stretch Code Adoption Grants are one of these programs.

To charge indirect costs to a grant, the applicant must have an annually negotiated indirect cost rate agreement (NICRA). There are three types of NICRAs: Federally Negotiated Rate. Organizations that receive direct federal funding, may have an indirect cost rate that was negotiated with the Federal Cognizant Agency. Illinois will accept the federally negotiated rate. The organization must provide a copy of the federally negotiated NICRA. State Negotiated Rate. The organization may negotiate an indirect cost rate with the State of Illinois if they do not have a Federally Negotiated Rate. If an organization has not previously established an indirect cost rate, an indirect cost rate proposal must be submitted through State of Illinois’ centralized indirect cost rate system no later than three months after receipt of a Notice of State Award (NOSA). If an organization previously established an indirect cost rate, the organization must annually submit a new indirect cost proposal through CARS within six months after the close of the grantee’s fiscal year. De Minimis Rate. An organization that has never negotiated an indirect cost rate with the Federal Government or the State of Illinois is eligible to elect a de minimis rate of 10% of modified total direct cost (MTDC) . Once established, the De Minimis Rate may be used indefinitely. The State of Illinois must verify the calculation of the MTDC annually in order to accept the De Minimis Rate. All grantees must complete an indirect cost rate negotiation or elect the De Minimis Rate to claim indirect costs. Indirect costs claimed without a negotiated rate or a De Minimis Rate election on record in the State of Illinois centralized indirect cost rate system may be subject to disallowance.

Applicants will be notified of the selection decision within 30 days after the deadline for application submission. Projects may require review and approval from the Illinois Environmental Protection Agency (IEPA) and the U.S. Environmental Protection Agency (EPA). NOTE: Any notice of selection is not an authorization to begin performance of the project or incur costs. Costs incurred before entering into a subaward agreement with the IFA/ICB will not be recoverable.

Please see attached NOFO. Applicant must also submit a completed Attachment A.

If any assistance is needed in accessing application materials or submitting application due to limited Internet access or other limitations, the potential applicant should contact Claire Brinley at climatebank@il-fa.com, 312-651-1319. Questions and answers will be posted anonymously and publicly on the Illinois Finance Authority website.

Applicant Eligibility: Only a municipality defined in the Energy Efficient Building Act (20 ILCS 3125/1) as any city, village, or incorporated town is eligible to apply. Any entity that is not defined as a municipality is not eligible to apply. Applicants included in the SAM.gov Exclusion List and status on the Illinois Stop Payment List will not be eligible for an award. Beneficiary Eligibility: The Climate Pollution Reduction Grant (CPRG) program in Illinois supports initiatives that reduce greenhouse gas emissions across five key sectors. For the Stretch Code Adoption Grant, beneficiaries include local governments that receive financial and technical support to adopt and implement energy-efficient building codes. Indirect beneficiaries include community members who will benefit from lower utility bills, improved building performance, and reduced exposure to pollution as energy efficiency measures are adopted across the building stock. Credentials Documentation: To submit an application, the applicant must register and pre-qualify through the Grant Accountability and Transparency Act (GATA) Grantee Portal, www.grants.illinois.gov/portal. Registration and pre-qualification are required annually. Selected applicants must also register with the federal SAM.gov and must have a Unique Entity Identifier (UEI) assigned in the sam.gov. Applicants included in the SAM.gov Exclusion List and status on the Illinois Stop Payment List will not be eligible for an award. The Grantee Portal alerts the entity alerts of “qualified” status or informs how to remediate a negative verification (e.g., missing UEI Unique Entity Identifier assigned in SAM.gov, not in good standing with the Secretary of State). Inclusion on the SAM.gov Exclusion List cannot be remediated.

See attached NOFO

Grantees will be responsible for ensuring all reporting requirements associated with the federal funding are met. This includes providing timely and accurate reporting to the Climate Bank in compliance with all federal and programmatic obligations. The Climate Bank will ensure that reporting processes are adjusted as necessary to meet updated or additional requirements issued by U.S. EPA. Reporting will include, but is not limited to, project financial and activity report, and assistance in developing sample project case studies. Reporting will include semi-annual reports to assist the Illinois Climate Bank in showing progress on achieving this program’s purpose. These semi-annual progress reports will be due to US EPA within 30 calendar days of the end of the semi-annual reporting period. Consequently, to allow time to compile reports from multiple grantees, reports may be due to the Climate Bank within as few as 3 days of the end of the semi-annual reporting period, which run from October 1 to March 31 and from April 1 to September 30 of each year. Grant recipients will track the impact of stretch code adoption through the metrics identified in Attachment A and as may additionally be requested by IFA/ICB. Grant recipients will also be required to submit quarterly financial reports.

Contacts for questions and assistance: Claire Brinley Program Manager, Illinois Finance Agency 160 N. LaSalle St., Suite S-1000 Chicago, IL 60601 ClimateBank@il-fa.com 312-651-1319