DOE deal

Texas lands largest portion of energy efficiency-focused federal grant program

The DOE funding will go toward the creation of a new Texas-based revolving loan fund that operationally matches the existing Texas LoanSTAR revolving loan program. Photo via Getty Images

Texas is among one of 17 states and territories to receive a portion of $66 million in awards for initiatives that pump federal dollars into their communities to support energy efficient projects.

The funds come from the U.S. Department of Energy's Energy Efficiency Revolving Loan Fund (RLF) Capitalization Grant Program. The RLF Program awards are intended to be put toward state-based loans and grants that go towards local businesses homeowners, and public spaces for "for energy efficiency audits, upgrades, and retrofits to increase energy efficiency," according to the DOE.

Texas received the largest portion thus far at $22.4 million. The dollars will go toward the creation of a new Texas-based revolving loan fund that operationally matches the existing Texas LoanSTAR revolving loan program.

The program currently finances energy-related, cost-reduced retrofits of public spaces as well as local municipalities. As of last year it had awarded more than 337 loans totaling more than $600 million, according to the Texas Comptroller's website.

In addition to the revolving loan, the state plans to use the DOE funds to provide free energy audit services to the community.

The DOE also awarded funding to create similar revolving loan programs and grants in Arizona, Georgia, Iowa, Puerto Rico and the U.S. Virgin Islands.

According to the DOE, every federal dollar invested into a state or local revolving loan fund can bring more than of $20 in private capital toward successful energy financing programs.

“Increased opportunities for low-cost financing will help states and territories expand access to the money-saving clean energy tools that will benefit the residential, commercial and public sectors,” Jennifer M. Granholm, U.S. Secretary of Energy, said in a statement. “We are excited to see states and territories take advantage of targeted and impactful financing options to transform their communities.”

The latest funding is the third award made by the RLF Program, which plans to make another round of awards later this year and a total $242 million once wrapped.

Other awards in this latest round include:

  • Arizona ($1,690,280)
  • Colorado ($1,631,220)
  • Delaware ($746,400)
  • Georgia ($2,453,810)
  • Iowa($7,068,920)
  • Kansas ($6,706,230)
  • Maine ($863,110)
  • Massachusetts ($1,894,760)
  • Minnesota ($1,884,300).
  • Nevada ($1,043,290)
  • New Jersey ($2,383,510)
  • New Mexico ($5,692,530)
  • Oklahoma ($7,592,300)
  • Puerto Rico ($1,070,490)
  • Rhode Island ($762,790)
  • U.S. Virgin Islands ($576,170)

Click here and here to read more about the previous awards.

Earlier this summer the DOE also awarded four Houston companies have received $50,000 each from the U.S. Department of Energy to further develop their carbon dioxide removal technology. Click here to read more.

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A View From HETI

Greentown Labs and MassChallenge have formed a strategic partnership. Photo courtesy Greentown Labs.

Climatetech incubator Greentown Labs has formed a strategic partnership with global zero-equity accelerator MassChallenge.

The two organizations have headquarters in the Boston area, while Greentown Labs is also co-located in Houston. MassChallenge has a hub in Dallas, as well as others in Israel, Switzerland and the United Kingdom.

The new partnership aims to strengthen the ecosystem for early-stage climatetech startups by providing more mentorship, support and a broader commercialization network for members, according to a news release.

Greentown Labs will share its expertise with the 23 startups in MassChallenge's first climate-specific accelerator, known as the MassChallenge Early Stage Climate program. Additionally, Greentown Labs members will benefit from MassChallenge's network of expert mentors, judges, entrepreneurs, partners, investors, philanthropists and others.

“There are so many synergies and shared values between MassChallenge and Greentown that launching a collaboration like this feels like a natural next step for our organizations as we strive to support as many early-stage climate founders as possible,” Georgina Campbell Flatter, Greentown Labs CEO, said in the news release. “We want to reduce the friction and barriers to market for these climate entrepreneurs and ultimately increase their opportunity for success—ecosystem collaboration is an essential part of solving these challenges together.”

Combined, Greentown and MassChallenge report that they have supported more than 4,500 founders and more than 1,000 climate startups. MassChallenge has awarded more than $18 million in equity-free grants to startups, which have gone on to raise over $15 billion, since it was founded in 2009. Greentown Labs has helped more than 575 startups raise more than $8.2 billion in funding since it launched in 2011.

Greentown recently added five startups to its Houston community and 14 other climatetech ventures to its Boston incubator. It also announced its third ACCEL cohort, which works to advance BIPOC-led startups in the climatetech space, earlier this year. Read more here.

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