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.

IFA posted its first NOFO under this program on May 17, 2024. The application window under that NOFO is now closed. IFA anticipates to issue a NOFO for the second round of project solicitations shortly. Please continue to check back here for the updates. More information on the May 17, 2024 NOFO can be found here.

Notices of Funding Opportunities (NOFO)

IL40101(d) NOFO#IFA-GRID-02 is now Open (due June 30, 2025)

Illinois Finance Authority (IFA), in its capacity as the Illinois Climate Bank (CB), invites project proposals under Illinois’ award for the 40101(d) Federal Formula Grant Program: Preventing Outages and Enhancing the Resilience of the Electric Grid (Program). With this NOFO, IFA/CB invites eligible entities interested in applying for funding under this Program to file their pre-application proposals in compliance with the terms of this NOFO. IFA/CB reserves the right to revise any part of this NOFO by issuing addendum(s) at any time. Issuance of this NOFO, or subsequent addendum(s), if any, does not constitute a commitment by IFA/CB or the State of Illinois to fund any project. In addition, IFA/CB may cancel this NOFO at any time, without incurring any liability from responders or potential responders.

  • Pre-applications Due: June 30, 2025 by 5pm CT
  • How to Apply: Submit your application though GATA Grantee Portal at the link below
  • Total Available funding under this NOFO: $14,400,000.
  • Expected amounts of individual awards: $150,000 – $8,000,000 per project.
  • Anticipated start dates and periods of performance for new awards: Winter 2026-2032.
  • Type of assistance instrument that may be awarded if applications are successful: Grant.
  • Cost Match: 48% of federal funding for Small Utilities (as defined below) and 115% for all other eligible entities.

The ultimate allocations may differ, based on the project selection outcome. IFA/CB reserves the right to not award the full amount of funding available under this NOFO and to make the remainder available under future notices of funding opportunities. IFA/CB has discretion in selecting projects and reserves the right to only award the projects its merit review found most responsive to the funding objectives and Illinois priorities.

 

APPLY HERE

Application Materials:

AmpliFund Instructions:

Webinars:

  • On May 20, 2025, CHEERS Initiative is hosting a workshop that will introduce NOFO#IFA-GRID-02 to the workshop stakeholders. Please see information about that event on this page below.
  • Another webinar on NOFO#IFA-GRID-02 will be announced here shortly.

NOFO# IFA-GRID-01 (Closed June 24, 2024):

Documents:

AmpliFund Instructions:

Webinars:

Additional Resources

CHEERS Initiative 

  • IFA is collaborating with the Customized Help and Expertise on Energy Resilience for States (CHEERS) initiative, that is providing technical assistance to states in implementing 40101(d) Grid Resilience Formula Grants.

Stakeholder Workshop

  • On May 20, 2025, from 2-4PM, CHEERS will host a virtual stakeholder workshop on 40101(d) resilience technologies. Reserve your spot by May 15 by completing this registration form.

USDOE Guidance

NETL Resources

Stakeholder Engagement