Leading by Example Decarbonization Implementation Grant Program

The Leading by Example Decarbonization Implementation Grant (DIG) is a state-funded initiative offered by the Massachusetts Department of Energy Resources through its Leading by Example (LBE) program. This program aligns with Executive Order 594, which mandates that state government operations eliminate onsite fossil fuel emissions and maximize the use of onsite renewable energy. The DIG grant is designed to accelerate large-scale decarbonization efforts within state-owned buildings and campuses by closing funding gaps and promoting energy system upgrades that contribute to the Commonwealth’s climate goals. The primary objective of the DIG program is to provide financial support to Massachusetts executive agencies, state institutions of higher education, and quasi-public authorities pursuing decarbonization projects. These include both existing facility retrofits and major renovation or new construction efforts. Projects that incorporate or prepare for technologies like solar photovoltaics and battery energy storage are prioritized, and additional funding is available for projects that serve environmental justice populations or include existing clean energy infrastructure. Grant amounts vary depending on the type of project and its location within the utility service territory. For existing facility decarbonization projects, awards may cover up to 40% to 50% of eligible costs based on utility type, with a ceiling between $3 million and $7 million based on the square footage impacted. New construction and major renovations are eligible for up to 20% to 30% of project costs, with a maximum grant of $2.5 million per facility. Additional grant adders may include 10% for environmental justice communities and 2.5% each for existing solar PV or energy storage assets, although the cumulative adder cap is set at 15%. Eligible costs for existing buildings include labor, equipment, and infrastructure necessary for decarbonization measures such as heat pump systems and envelope improvements. For new construction, only equipment and installation costs directly associated with large-scale thermal systems are covered. Costs related to routine maintenance, repairs, or staff labor are not eligible unless the labor is contracted via a competitive procurement process. The application process consists of two major steps. First, applicants must submit a Statement of Interest (SOI) outlining their project and its expected emissions reduction impacts. The SOI must be submitted using Attachment A from the Program Opportunity Notice on COMMBUYS. Upon review and feedback, applicants may then submit the full Grant Application Form (Attachment B), accompanied by either a vendor proposal or detailed cost estimates. Required submissions must be sent electronically to both LBE-Grants@mass.gov and Morgan.Bowler@mass.gov. Three application rounds are scheduled, with the first SOI due July 17, 2025, and the final submission deadline on February 2, 2026. Awards will be announced approximately two months after each round's final submission date. Funding is subject to availability and may be exhausted before later rounds; the LBE Division will provide at least 30 days' notice if that occurs. For questions regarding eligibility or cost items, applicants are advised to contact LBE staff via the email provided.

Submit SOI early for feedback and ensure alignment with EO 594.