Federal Clean Energy Funding Opportunities

The 2021 Infrastructure Investment and Jobs Act (IIJA)/Bipartisan Infrastructure Law (BIL) (H.R. 3864, 2021) appropriated more than $62 billion to the U.S. Department of Energy (DOE) to create 60 new programs, including 16 demonstration and 32 deployment programs. The legislation also expands funding for 12 existing Research, Development, Demonstration, and Deployment (RDD&D) programs. The Inflation Reduction Act of 2022 and the CHIPs and Science Act (2022) added even more opportunities to invest in clean energy technology. 

This newly available and one-time federal funding supports the CPUC’s goals of bill affordability, climate adaptation, and safety for California’s electric and gas ratepayers by potentially displacing the need for ratepayer dollars for electric infrastructure interconnection, hardening, resiliency, and other infrastructure projects. The electric and gas investor-owned utilities (IOUs) can directly apply to the U.S. DOE for funding through various competitive grant solicitations. The California Energy Commission (CEC) and other applicable state agencies will also be applying to relevant formulaic and competitive funding solicitations open to state entities with much of this funding eventually flowing to the electric and gas IOUs. 

More information on the DOE’s Bipartisan Infrastructure Law Program & Funding Opportunity Announcements can be found here.

Notable Wins to Date

The table below is a selection of some notable federal funding wins so far:

Federal Funding Engagement with Electric and Gas Investor-Owned Utilities

CPUC understands the need for a clear regulatory process to position the electric and gas IOUs to win competitive funding opportunities. A clear process also helps inform the public and clarifies how to provide feedback on appropriate uses of ratepayer funds. The Commission has consistently messaged the need for IOUs to apply for federal funding and the support these programs could return for California’s climate and safety goals while helping maintain affordability.

• See CPUC and IOU Correspondence below

Resolution E-5254 & Commission Guidance on Ratepayer Matching Funds

In April 2024, the Commission adopted Resolution E-5254. The Resolution formalized support for IOU pursuit of federal funding opportunities, allowed for the establishment of a memorandum account to track spending on applications and other federal funding costs, and established a process for utilities to seek cost recovery for the required ratepayer cost share of successful federal opportunities. Utilities are directed to apply for cost recovery through the existing general rate case (GRC) or application process, in order to ensure that all projects face a sufficient level of scrutiny and opportunity for public engagement.

To further transparency, Resolution E-5254 also established a quarterly advice letter reporting requirement. Letters filed under this requirement are linked below.

Federal Funds Reporting Requirements

Under Resolution E-5254, California electric and gas IOUs are required to report some information on IIJA/BIL, IRA, and CHIPs grants to the Energy Division on a quarterly basis. The reporting template available here updates requirements in Table 2 of Resolution E-5254.

Download the Updated Reporting Template here.

Federal Funds Advice Letters

The table below links to the advice letters filed under Resolution E-5254. Advice letters contain the E-5254 template linked above.

* Bear Valley Electric Service advice letters can be searched for here; SCE advice letters can be searched for here.

CPUC Letters and IOU Replies