Energy Efficiency Pilot Program for Nonprofits Included in US Infrastructure Bill

Strategic Insights -

The US Senate has approved a trillion-dollar infrastructure bill that includes a little-known provision aimed at helping nonprofits, including religious congregations, reduce their energy consumption through energy-efficient upgrades. The "Energy efficiency materials pilot program" would fund $50 million in grants for nonprofits to purchase new energy-efficient heating and cooling systems, generators, and make energy-efficient improvements to their buildings. This initiative has been years in the making, with proponents citing the need for nonprofits to reduce their energy expenses, which can be a significant burden for many congregations.

Key Takeaways:

  • The Energy efficiency materials pilot program would provide grants of up to $200,000 each to nonprofits to purchase new energy-efficient heating and cooling systems, generators, and make energy-efficient improvements to their buildings.
  • The program is estimated to help around 250 nonprofits, a tiny fraction of the estimated 350,000 religious congregations in the US.
  • The program has been in the works for years, with proponents citing the need for nonprofits to reduce their energy expenses, which can be a significant burden for many congregations.
  • Nonprofits have a hard time accessing energy efficiency subsidies, which typically come in the form of tax credits, since they don't pay taxes.
  • 80% of religious congregations desperately need maintenance upgrades on energy-efficient items, such as aging heating and air conditioning units, leaky roofs, and drafty windows.
  • The Community Purchasing Alliance, a Washington, D.C.-based cooperative, has helped struggling churches and nonprofits buy basic services, including energy-efficient upgrades.
  • The project's proponents hope that the Energy Department will be able to award the first grants in 2022, assuming President Joe Biden signs the measure this fall.

Statistics:

  • $50 million in grants would be available to nonprofits through the Energy efficiency materials pilot program.
  • The maximum grant amount is $200,000.
  • The program is expected to help around 250 nonprofits, out of an estimated 350,000 religious congregations in the US.
  • 80% of religious congregations desperately need maintenance upgrades on energy-efficient items.
  • The pilot program has been years in the making, with proponents citing the need for nonprofits to reduce their energy expenses.

Sources:

  • "Energy efficiency materials pilot program." U.S. Senate.
  • Yonat Shimron. "Buried in the trillion-dollar infrastructure bill, a little-known provision helps nonprofits and churchgoers save on energy." The Religion News Service. August 12, 2021.
  • Nathan Diament. Executive Director, Orthodox Union Advocacy Center. August 10, 2021.