Energy Transition Community Grant Program

The Energy Transition Community Grant Program is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) to support communities affected by the closure or reduced operation of fossil fuel power plants, coal mines, or nuclear facilities. This program, rooted in the Climate and Equitable Jobs Act (CEJA) of 2021, aims to promote economic development, workforce training, environmental remediation, public health, and other community resiliency projects in impacted areas. DCEO plays a central role in distributing funds and guiding these communities through a strategic transition towards sustainable, diversified local economies. The funding opportunity, announced under CSFA Number 420-35-3071 and Funding Opportunity Number FY25-2, has a total program budget of $40 million for the 2025 cycle and anticipates awarding over 50 grants. Funding is sourced entirely from the State of Illinois, and cost sharing or matching is not required. The minimum award is $50,000, and amounts are calculated based on a formula considering job losses and revenue losses related to plant or mine closures. A key feature of the program is a two-phase application process, ensuring thorough vetting and community engagement before final awards are granted. Phase 1 applications are due by June 30, 2025, and require submission of basic eligibility data, tax information, and, if applicable, letters of support from host municipalities or counties. Once eligibility is confirmed, applicants receive a funding allocation and may proceed to Phase 2, due by October 31, 2025. Phase 2 entails a detailed project proposal, including a narrative, stakeholder engagement documentation, performance goals, and a comprehensive budget. Community consultation is a mandatory aspect of this phase, ensuring input from a wide range of local stakeholders. Eligible applicants are local units of government within 30 miles of qualifying facilities, which must have closed or reduced operations within six years of application or be expected to do so within six years. Applications must be submitted via the Smartsheet portal. Only local governments may serve as lead applicants, but they may partner with various subgrantees, including nonprofits, educational institutions, and economic development entities. Resolutions of support are required from the host jurisdictions if they are not the lead applicant. Allowable uses of funds include a broad array of community-focused activities such as environmental clean-up, public infrastructure improvements, downtown revitalization, tourism marketing, workforce retraining, and direct financial assistance for affected residents. Grantees may also use up to 3% of awarded funds for third-party support in applying for additional funding sources. The grant period may last from one to three years, beginning December 1, 2025. Technical assistance will be offered via a session on June 11, 2025. Questions and requests for clarification may be directed to Program Contact Matthew Swaine at CEO.CEJACommTransition@illinois.gov or to the general Grant Help Desk at CEO.GrantHelp@illinois.gov. Applications submitted more than 16 days prior to deadlines will be preliminarily reviewed for completeness, while those submitted after that window will undergo review only after the deadline. Awards will follow a merit-based evaluation process, with an option for appeal regarding procedural fairness.