LEED Cap Ex: 3 Federal Funding Sources to Assist

Part of creating a sustainable development is a willingness to expend capital on the front-end for what are frequently long-term savings and a higher ROI down the road. That said, when initially planning a LEED-certification project, any opportunity to reduce these upfront costs is welcome by the owner. Below are three federal funding resources that can help mitigate the initial costs and improve both the return as well as the time to realize that return.

USDA

The US Department of Agriculture offers two primary grants through their Rural Energy for America Program (REAP) that have crossover with LEED projects. The first is the REAP Feasibility Study Grants which are designated for energy audits and assistance in renewable energy development. It can cover up to 25% of the project with a $50,000 cap.

The second is the Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program. Specified to agricultural producers and rural small businesses, this option enhances existing credit opportunities for financing the construction or improvement of renewable energy systems, from hydroelectric to renewable biomass. Upgrades can include but are not limited to retrofitting, insulation or inefficient equipment replacement.

U.S. Fish & Wildlife Services

USFWS is a noted supporter of LEED and has donated millions in grant money to existing and new buildings. Under the American Recovery and Reinvestment Act of 2009, which allotted $831 billion in investment between 2009 and 2019, a significant portion - more than $150 billion - was earmarked specifically for infrastructure and energy improvements, all with an eye toward sustainability. The US Fish & Wildlife Service was awarded $280 to disperse to appropriate projects throughout the country that fall into one or more of the following areas: energy efficiency retrofitting, infrastructure improvement, habitat restoration and youth employment. Other funding programs with potential applicability to your project may include the North American Wetlands Conversation Act and the National Coastal Wetlands Conservation Grants.

U.S. EPA Land Trust Alliance

The U.S. Environmental Protection Agency (EPA), specifically it’s Land Trust Alliance, have a variety of grant programs that can assist in the buy down phase including Brownfield’s Area-Wide Planning Grants and Smart Growth Grants. Both have stringent application processes, and I recommend utilizing the EPA’s application resources (Webinars, slideshows, etc.) to make completing the paperwork successfully on the first try far less daunting.

Successfully accessing this type of funding requires two critical attributes (in addition to meeting the general eligibility): tenacity and patience. The administrative aspects of these grants are daunting, but necessary. So, start the process as early as possible and don’t be discouraged if you find yourself spending more time than expected entering data into empty fields. The benefits of gaining access to such funds are well worth it and may mean the difference between building a LEED-certifiable building and one that falls short due to financial constraints.