40101d Grid Resilience

Preventing Outages and Enhancing the Resilience of the Electric Grid

Program Overview

  • Under Section 40101(d) of the Bipartisan Infrastructure Law, the U.S. Department of Energy is funding state grant programs to enhance electric grid resilience. These funds are congressionally approved and lawfully awarded. The Illinois Climate Bank will distribute $8 million annually for five years, prioritizing reliability, innovation, and disadvantaged communities. Funds support microgrids, weatherization, automation, and emission-reducing grid upgrades. Investments focus on equity, cost savings for low-income residents, workforce readiness, and sustainable infrastructure. Awards are based on population, land area, and risk factors to ensure effective mitigation and modernization.
  • The award is designed to strengthen and modernize Illinois’ power grid and to provide a reliable power infrastructure to all communities to have access to affordable, reliable, and clean electricity, focusing on the following:
    • Reliability and resiliency improvements in Equity Investment Eligible Communities (EIECs) that align with potential climate change impacts.
    • Grid investments that support environmental objectives such as reducing emissions and leveraging nature-based solutions.
    • Cost-saving measures that prioritize low- and moderate-income residents to lower their energy burden.
    • Supporting equity through building awareness in frontline communities, increasing access and opportunities for residents and businesses in EIECs, and supporting communities and small utilities in planning and investing in resiliency.
    • Ensuring safe operations and supporting the preparation of the workforce for emerging technology opportunities. State awards are based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts.

Funding

  • Federal Funds: Expected amounts of individual awards: $150,000 – $8,000,000 per project.
  • Cost Match: If the applicant sells more than 4,000,000 megawatt-hours (“MWh”) per year (Large Utility), the applicant will have to commit to match 115% of all federal funds received for the project.  If the applicant sells not more than 4,000,000 MWh (Small Utility), the applicant will commit to match one-third + 15% of all federal funds received for the project.  Grant funds distributed to eligible entities that do not have sales of electricity would qualify toward the overall required cost match of 115% of all federal funds received for the project.
    • Example: if you are requesting $1 million in federal funding for your project, and you are a Small Utility: you must provide a non-federal cost match of $150,000 (15%) plus $333,333 (1/3) for your project, so your total cost match would be $483,333.  You are a Large Utility or any other Eligible Entity that is not a Small Utility: you must provide a non-federal cost match of $1,150,000 (115%). Only costs associated with the Eligible Activities can be counted towards the subawardee cost match.

Eligibility

  • Eligible Entities, include: 
    • An electric grid operator
    • An electricity storage operator
    • An electricity generator
    • A transmission owner or operator
    • A distribution provider
    • A fuel supplier
    •  Other relevant entity, with the Secretary of Energy approval
  • The State of Illinois has requested in its application and is working with the Secretary of Energy to approve the following additional eligible recipients:
    • Non-profit organizations
    • Units of local government
    • Critical facilities
    • Illinois Municipal Utilities Association (IMUA)
    • Association of Illinois Electric Cooperatives (AIEC) as eligible recipients.

How to Apply

IFA will post Notices of Funding Opportunity (NOFO) through Illinois GATA Grantee Portal at www.grants.illinois.gov/portal.  A copy of each NOFO will also be available on this website. Applications will be accepted under each respective open NOFO though www.grants.illinois.gov/portal.

 

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Newsletter

Program Awardees

The Illinois Finance Authority (IFA) is pleased to announce the awardees from the first round of its Grid Resilience Grants program, funded by the U.S. Department of Energy under Section 40101(d) of the Bipartisan Infrastructure Law. The Department of Energy’s mission is to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions. Learn more at energy.gov.

 

Awardees from the Illinois Climate Bank’s first round of competitive applications, submitted in Spring 2024, are listed below and more detailed project descriptions are located here.

 

Applicant Federal Funding Grantee Cost Share Combined Investment County
Adams Electric Cooperative $513,361 $480,370 $993,731 Schuyler
City of Newton $266,137 $248,966 $515,103 Jasper
City of Springfield $1,127,470 $551,519 $1,678,989 Sangamon
Egyptian Electric Cooperative Association $1,775,714 $1,937,690 $3,713,404 Various
Illinois Municipal Utilities Association $475,376 $229,765 $705,141 Various
SouthEastern Illinois Electric Cooperative $543,232 $260,752 $803,984 Pope
Southern Illinois Electric Cooperative $4,337,114 $4,036,720 $8,409,834 Various
Southern Illinois Power Cooperative $987,350 $923,650 $1,911,000 Various
Total Round 1 Funding $10,025,754 $8,669,432 $18,731,186

Additional Resources

Stakeholder Engagement

Grid Resilience NOFO #3 Webinar – February 11, 2026

Awardee BABA/DBA Training – September 9, 2025

Grid Resilience NOFO #2 Webinar – June 13, 2025

CHEERS Virtual Workshop – May 20, 2025

Grid Resilience NOFO #1 Webinar – May 21, 2024

DOE Section 40101(d) Grid Resilience Public Ideas Workshop – March 7, 2023

More Resources

Click here for library of resources, including:

  • Build America, Buy America (BABA) Resources
  • Davis-Bacon Act (DBA) Resources
  • CHEERS Initiative
  • USDOE Guidance for 40101(d) Projects
  • NETL Resources