Section 810.10  Purpose

 

The purpose of the Energy Transition Community Grant Program is to award grants to promote economic development in communities that are in an area with a closure or reduced operation of a fossil fuel power plant, coal mine or nuclear plant.

 

Section 810.20  Definitions

 

"Act" means the Energy Community Reinvestment Act.

 

"Closure" means the permanent shutdown of an electric generating unit or coal mine.

 

"Decommissioned" means a nuclear power plant that has submitted a Certification of Permanent Cessation of Operation to the United States Nuclear Regulatory Commission as is required by 10 CFR 50.82(a)(1)(i).

 

"Department" means the Department of Commerce and Economic Opportunity.

 

"Eligible Area" is a community that contains one or more of the following within a 30-mile radius:

 

a fossil fuel or nuclear power plant that was retired from service or has significantly reduced service within six years before the application for designation or will be retired or have service significantly reduced within six years following the application for designation;

 

a coal mine that was closed or had operations significantly reduced within six years before the application for designation or is anticipated to be closed or have operations significantly reduced within six years following the application for designation;

 

a nuclear power plant that was decommissioned, but continued storing nuclear waste before the effective date of the Act. [20 ILCS 735/10-20(c)]

 

"GATA" means Grant Accountability and Transparency Act [30 ILCS 708].

 

"Grantee" means an applicant for a grant award under this program whose proposal is funded by the Department.

 

"Primary Applicant" means local unit or units of government, including municipalities, counties, school districts, and other taxing districts within the eligible area.

 

"Retired From Service" means a fossil fuel or nuclear power plant that is no longer in service.

 

"Secondary Applicant" or "Secondary Applicants" means an economic development organization, local educational institutions, community-based groups joining with a primary applicant. [20 ILCS 735/10-20(d)]

 

"Significantly Reduced Operations" for a coal mine means: tons of coal produced have declined from a non-zero amount to zero within the previous six years and remained at zero through the most recent year for which data is available; or average annual tons of coal produced over the most recent 5 year period for which data is available and tons of coal produced in the most recent year for which data is available are both at last 25% lower than the average annual tons of coal produced during the 5-year period for which data is available.

 

"Significantly Reduced Service" means a fossil fuel or nuclear power plant that has ceased operations of one or more generating units at the plant and/or converted to a different type of plant, resulting in fewer on-site employees.

 

Section 810.30  Funding Source

 

The grant awards described in this Part are contingent upon the availability of funding in the Energy Transition Assistance Fund [20 ILCS 605/605-1075] up to $40,000,000 annually. [20 ILCS 605/605-1075(b)(9)]

 

Section 810.40  Grantee Eligibility

 

Local units of government within an eligible community may apply for a grant under the Energy Transition Community Grant Program as a primary applicant. Primary applicants may join with any other local unit of government, economic development organization, local educational institutions, community-based groups, or with any number or combination thereof as secondary applicants.  Eligible Applicants must have an active GATA registration and is qualified on the GATA grantee portal (https://grants.illinois.gov/portal/) at the time the application is submitted. [20 ILCS 735/10-20(d)]

 

Section 810.50  Eligible Uses

 

Grants must be used to plan for or address the economic and social impact on the community or region of plant retirement or transition. [20 ILCS 735/10-20(g)]

 

a)         Eligible uses for grant funds include, but are not limited to:

 

1)         Research, analysis, and planning regarding economic impact reduced or ceased operations of the regional facility;

 

2)         Environmental remediation of sites of closed facilities and other local infrastructure improvements;

 

3)         Marketing of tourist and recreation opportunities;

 

4)         Business development initiatives to attract, expand, or retain employers;

 

5)         Workforce development and support for individuals displaced by closures or reduced operations, including training for skilled trades in regional industries;

 

6)         Investment for construction or improvement in local job training facilities;

 

7)         Financial assistance for unemployed, underemployed, and/or low-income residents;

 

8)         Public health initiatives; and

 

9)         Other initiatives to address the economic and social impact of reduced production or closure of regional facilities.

 

b)         Third-party vendors for grant writing and implementation costs, including for guidance and opportunities to apply for additional federal, State, local, and private funding resources. If the application is approved for pre-award, one-time reimbursable costs to apply for the Energy Transition Community Grant are authorized up to 3% of the award. [20 ILCS 735/10-20(i)]

 

Section 810.60  Applications

 

To receive grant funds, an eligible community must submit an application to the Department, using a form developed by the Department. [20 ILCS 735/10-20(e)]

 

a)         For applicants that are within an eligible area due to their proximity to a fossil fuel or nuclear plant or coal mine that has closed or significantly reduced operations in the past six years or anticipated closure or significantly reduced operations in the next six years, applications will be accepted in two phases as follows:

 

1)         Phase 1:

 

A)        The Department will publish a Phase 1 Notice of Funding Opportunity ("NOFO") with a Phase 1 application form and application for at least 30 days.

 

B)        The applicant must submit:

 

i)          A signed Uniform Grant Agreement;

 

ii)         A Conflict of Interest disclosure;

 

iii)        Mandatory disclosures; and

 

iv)        A statement detailing:

 

•           Name of local government or organizations, specifying primary applicant and any secondary applicants;

 

•           List of parcels that the qualifying physical plant or mine are located on, as well as property tax revenue collected for each of those parcels by each local government entity with jurisdiction in the most recent year available, and in the year six years prior; and

 

•           If the applicant is not the local government that hosts or has hosted the investor-owned electric generating plant, a resolution of support for the project from the local government or local governments that hosts or has hosted the investor-owned electric generating plant. [20 ILCS 735/10-20(f)]

 

C)        The Department will evaluate the submissions and notify applicants of its determination of eligibility and maximum funding amount for their application following the criteria described in Section 810.70(a). Applicants will be designated eligible if they submit a complete application and provide the factual information detailed in Section 810.60(a)(1)(B).

 

D)        The Phase 1 determination of eligibility may be appealed through the process afforded in the Department's Administrative Hearing Rules set forth at 56 Ill. Adm. Code 2605.

 

2)         Phase 2:  For primary applicants determined eligible following the Phase 1 publication period, the Department will provide a letter via e-mail containing a notification of eligibility, maximum funding amount, Phase 2 application form, and guidelines for supporting documentation.  Primary applicants shall submit an application which includes, but is not limited to, the following:

 

A)        A cover page including the name of primary applicant and any secondary applicants;

 

B)        A detailed project narrative including, but not limited to:

 

i)          A description of what the project will entail and which entity will be responsible for the administration and implementation of the project;

 

ii)         How the project will address the economic and social impacts of the closure and support economic development in the affected area;

 

iii)        The timeline for implementation;

 

iv)        A description of community involvement in planning and implementing the project;

 

v)         A uniform budget template; and

 

vi)        Any additional information and documentation that supports the applicant's project.

 

b)         Applicants that are units of local government that are taxing authorities for a nuclear plant that was decommissioned before January 1, 2021 may submit applications as outlined in this subsection, including, but not limited to, the following:  [20 ILCS 735/10-20(j)]

 

1)         A cover page including the name of applicant;

 

2)         A signed Uniform Grant application;

 

3)         A Conflict of Interest disclosure;

 

4)         Mandatory disclosures;

 

5)         A detailed project narrative including the scope of the project;

 

6)         A description of community input and consultation;

 

7)         A uniform budget template; and

 

8)         Any additional information and documentation that supports the applicant.

 

Section 810.70  Grant Award Determination

 

a)         Phase 1 determinations of eligibility and maximum funding amounts will be awarded by the Department to grantees following a merit review by the Department and pursuant to the GATA requirements within 44 Ill. Adm. Code 7000.350.

 

1)         Phase 1 applicants will be designated eligible if they submit a complete application and provide the factual information detailed in Section 810.60(a)(1)(B).

 

2)         Phase 1 applicants shall be approved for maximum funding amounts based on employment reduction levels and the loss of property taxes or PILOT revenue corresponding with the closure or reduction of operations of the fossil fuel power plant or coal mine. When more than one local government entity is included in an application, this amount will be calculated for each distinct entity and then aggregated across those entities.

 

b)         Following a determination of eligibility and maximum funding amounts described in subsection (a), final funding amounts will be established after a merit review of the Phase 2 applications described in Section 810.60(a)(2).  The funding determinations will be based on the evaluation of project details described in the Notice of Funding Opportunity, including, but not limited to:

 

1)         A detailed description of the project, including, but not limited to:

 

A)        For proposed capital projects, how the project addresses a current deficiency and/or supports economic development in the community; and

 

B)        For proposed non-capital projects, what eligibility factors are used for participants in the proposed project, how the project will be staffed, and plans for outreach to underserved populations.

 

2)         The proposed process for developing and implementing the project, including details regarding:

 

A)        Project administration, implementation, outreach, and participation eligibility as applicable;

 

B)        A timeline for implementation of the project; and

 

C)        Metrics to assess the impact of the project and interim goals of the project.

 

3)         Demonstration of the completion of required stakeholder engagement, including but not limited to:

 

A)        Community input, by hosting at least one public meeting in which proposed use of Energy Transition Community Grant funds was on the agenda; and

 

B)        Requesting input or feedback regarding the use of Energy

Transition Community Grant funds from the following stakeholders: regional planning councils, where applicable; economic development organizations; low-income or environmental justice communities; educational institutions; elected and appointed officials; organizations representing workers; and other relevant organizations. (See 20 ILCS 735/10-20(h).)

 

c)         Approved applicants meeting the criteria described in Section 810.60(b) shall receive grants in proportional shares of $15 per kilogram of spent nuclear fuel stored at such a facility, less any payments made to such communities from the federal government based on the amount of waste stored at a decommissioned nuclear plant and any property tax payments. [20 ILCS 735/10-20(j)]