Local Energy Action Fund (LEAF)

Projects must fall into one of the following categories to qualify. 

Beneficial Electrificaiton 

Electrification is considered beneficial when it reduces greenhouse gas emissions, lowers energy costs over the life of the equipment, improves comfort or health for building occupants, or supports more efficient use of the electric grid.

Examples include:

• replacing propane, natural gas, or other fossil fuel equipment with efficient electric alternatives
• heat pumps
• heat pump water heaters
• induction cooking equipment.

Learn more at lpea.coop/electrify-save-be/what-beneficial-electrification-be

Energy Efficiency

Reducing total energy consumption through equipment upgrades, appliance replacements with Energy Star-rated equipment, lighting retrofits, or controls modernization. Weatherization measures such as insulation and air sealing are eligible when the project site is heated with electricity.

Local Renewable Energy

This would include projects like solar PV installations and battery storage systems on buildings within LPEA’s service territory and connected to LPEA’s electric grid.

Applicants must provide documentation confirming their relationship
to the project site with their application.

Solar installations on leased buildings require written landlord consent, and the interconnection agreement must be executed before reimbursement.

Battery storage systems must enroll in LPEA’s Community Power Battery program and operate in a mode and on a schedule that benefits the grid.

EV Charging Infrastructure and E-Bikes

Projects in this category would include Level 1 and Level 2 charging stations and e-bike charging hubs installed at community-accessible facilities.

E-bikes purchased by your organization for program or staff use are also eligible.

Electric vehicle purchases are not eligible.

*Enhanced Tier applicants must submit formal commitment letters for all co-investment (matching) sources with the application. Missing or incomplete co-investment documentation is treated as a deficiency under the completeness review described in Section 5.

Standard Tier: These awards range from $2,500 to $15,000 per LPEA account, per cycle. No matching funds are required. 

Enhanced Tier: Enhanced Tier awards range from $2,500 to $25,000. To qualify, your organization must demonstrate confirmed co-investment of at least 50% of the requested award.

Qualifying co-investment sources include: 

• Federal, state, or local government grants
• Private foundation or nonprofit grants
• Your organization's own capital contribution
• Documented in-kind contractor contributions at fair market value with quotes or invoices
• Third-party loans committed to the project 

Volunteer labor and applicant staff time do not qualify as co-investment.

Costs incurred before grant agreement execution may count as co-investment if they are documented, fall within the approved project scope, and were incurred after the application was submitted.

The February Board vote determines awardees, and funding is available once your grant agreement is executed. You can then begin your project and start submitting reimbursement requests right away.

LPEA’s May Annual Meeting recognizes and celebrates that cycle’s awarded projects.

A complete application requires all five sections, completed and submitted through the online application portal at lpea.coop/LEAF.

Staff reviews applications for completeness as they are received
and will notify you of any identified deficiencies within 10 business days of receipt.

You have until the application deadline or 15 business days from the date of that notification, whichever is later, to resolve identified deficiencies. Applications with deficiencies that are not resolved within that window will not advance in the current cycle.

Section A: Organizational Information 

• Your organziation's legal name
• Contact information
• LPEA account number for the project site
• Mission statement
• Population served
• Years in operation.

You’ll also need to confirm your tax-exempt status by checking the applicable box and submitting supporting documentation. The following are the appropriate supporting document types per organization type: 

• 501(c)(3) nonprofits: IRS determination letter confirmatin tax-exempt status. Find yours at: apps.irs.gov
• Municipalities, counties, and local government entities: A brief letter on official government letterhead signed by an authorized representative (city manager, county administrator, or equivalent) confirming governmental status. 
• Public school districts: A letter on official district letterhead signed by the superintendent or chief financial officer confirming the district’s governmental tax-exempt status.
• Tribal governments: A letter on official tribal letterhead confirming federal recognition status, or a citation to the Bureau of Indian Affairs federal register listing of federally recognized tribes.
• State colleges, community colleges, or public universities: A letter from the institution’s finance or legal office confirming the institution’s status as a state governmental entity

Section B: Project Description

Describe the project in 5 pages or fewer, including:

• Current conditions at the site (existing equipment, systems, or building characteristics)
• Proposed equipment or measures
• Site address
• Anticipated start and completion dates
• What this project makes possible for the people your organization serves: what changes for them, why the benefit matters in practical terms, and how this project supports your mission. If the primary benefit is reduced operating costs, provide an estimate of the projected savings and describe how those funds will be redirected to support your organization’s mission or the people you serve

The strongest descriptions are specific and grounded. Reviewers should be able to picture the project and understand why it matters for the families, residents, students, or clients who benefit from your work.

You must provide documentation confirming your relationship to the project site. If your organization owns the site, provide documentation of property ownership. If your organization leases the site, provide a current lease agreement and written landlord consent for the installation. Funded equipment
must be permanently installed and remain with the building.

Section C: Budget, Funding, and Contractor Quote 

This section shows staff what your project will cost and how it will be paid for.

At least one contractor or vendor quote is required for the application to advance to review. A quote from a local contractor is preferred when available. Two or more quotes are strongly recommended for projects over $10,000.

Provide the quote and/or a project budget covering each category of the proposed work, including equipment, installation, and any associated permits. State the grant amount requested and indicate whether you are applying under the Standard or Enhanced Tier.

Enhanced Tier applicants must identify all co-investment sources in this section and include formal commitment letters for each. 

Section D: Energy and Emission Documentation

Projects will be evaluated in part on their emissions reductions, focusing primarily on GHG emissions. An element of the staff review of the application will be to assess how this project reduces emissions.

LPEA will focus on Scope 1 and Scope 2 emissions, considering emissions from onsite fuel combustion and offsite emissions for electricity generation. For solar and battery storage projects, staff uses time-ofday emissions rates to reflect when the system produces or discharges energy. All other project types
use an average annual emissions rate.

LPEA has direct access to your electric account’s electric usage history and pulls that data internally. You only need to submit utility bills when your project involves replacing propane or natural gas equipment.

Section E: Certification 

An authorized representative must sign a certification confirming that:

• All information in the application is accurate and complete to the best of their knowledge
• Funds will be used only for the approved project
• The project will be completed within the grant period, or LPEA will be notified in writing within 30 days of becoming aware that completion is in doubt
• The organization understands and accepts the Non-Completion Policy (Section 7) and its future eligibility consequences
• The signatory has authority to bind the organization to the agreement

Equipment performance standards. Equipment must meet the program’s minimum performance standards to be eligible for funding.

• Air source heat pumps for space heating must carry a rated HSPF2 of 8.5 or higher.
• Include manufacturer specification sheets with the contractor quote so staff can confirm the rating during review.
• Battery storage systems must enroll in LPEA’s Community Power Battery program and operate in a mode and on a schedule that benefits the grid.
• EV charging must be scheduled to avoid peak demand periods.
• Organizations installing EV charging infrastructure are also encouraged to enroll in applicable LPEA demand response programs, including Lighten the Load, to maximize grid benefit and reduce peak demand costs.

A staff committee of 2-4 LPEA employees reviews all complete applications in December and early January. Reviews are narrative-based. Each application is assessed against six program values (see chart below). There's no point score. However, applications will be rated as Exceptional, Strong, Adequate or Needs Strengthening. The committee prepares written evaluations for each application, which go to the Member Engagement Committee (a committee of the LPEA Board of Directors) and then to the Board for the final award decision in February. 

Understanding these values will help you write a stronger project description and budget narrative. 

Exceptional: To obtain an exceptional rating for the Greenhouse Gas Reduction section, an application must project a minimum annual GHG reduction of 0.10 MT CO₂e per $1,000 of requested award.

Strong: A strong rating is 0.08 to 0.10 MT CO₂e per $1,000.

Adequate: An adequate rating is 0.05 to 0.08 MT CO₂e per $1,000.

Needs Strengthening: This rating will be assigned to those below 0.05 MT CO₂e per $1,000.

Staff handles all calculations. No calculation is required from applicants.

The Board may award anywhere from one to four grants per cycle, or none if no applications meet the program’s standards. The number and amount of awards is a Board decision made each cycle based on application quality and current fund balance. Organizations whose applications are not selected will receive written notification of that decision. The program manager is available to discuss your application, offer perspective on what made the cycle competitive, and suggest ways to strengthen a future submission. 

Grant Agreement

Every award recipient signs a grant agreement before funds are released. The agreement includes:

• the award amount
• funding tier
• project description
• approved budget
• reimbursement process
• project completion deadline
• reimbursement request deadline 
• story participation expectation.
• a signed Form W-9
• a completed direct deposit authorization form

How Reimbursement Works

Once your grant agreement is executed, you may begin your project and submit reimbursement requests as work is completed and invoices are paid.

Awards are disbursed as reimbursements. You pay contractors and vendors directly, then submit a reimbursement request to LPEA with paid invoices. LPEA processes payments by direct deposit within 25 business days of receiving complete documentation. You can submit reimbursement requests as work progresses without waiting for the full project to be done. You may submit no more than one reimbursement request per month.

Total reimbursements will not exceed the approved award amount. All project work must be completed by the project completion deadline of October 31, of the award year.

Reimbursement requests must be received within 60 days after that deadline, by December 30, or within 60 days after the extended deadline if a no-penalty
completion deadline extension has been approved.

Grantees are responsible for having sufficient working capital to pay contractors before seeking reimbursement. Many contractors offer milestone billing, which can reduce the amount of upfront capital needed.

Questions about structuring contractor payments should be directed to the program manager before the project begins.

Project Completion

Projects are expected to be completed by October 31 of the award year. A single no-penalty completion deadline extension through December 31 may be approved when delays are outside the grantee’s reasonable control, such as permitting delays, utility interconnection timelines, equipment procurement delays, contractor availability, or seasonal constraints. Extension requests must be submitted in writing to the program manager at least 30 days before the original deadline.

Sharing Your Story

Award recipients are expected to share their project story in at least one of the following formats as a condition of the grant agreement:

• a written testimonial
• photographs of the completed installation,
• a short video
• participation in an LPEA podcast, outreach campaign, or member communication
• a presentation at an LPEA community event

The program manager will follow up with all recipients to help them fulfill this in whatever format works best.

Equipment Permanence

Funded equipment must be permanently installed and remain with the building, so the emissions benefit stays in LPEA’s service territory regardless of future changes in tenancy.

E-bikes are exempt from the installation requirement but must remain owned by your organization and be used primarily within LPEA’s service territory.

Non-Completion Policy

If a project is abandoned or cannot be completed, LPEA stops processing reimbursement requests. Eligible expenses already incurred and paid may still be submitted, provided they represent completed work within the approved project scope that is installed and operating on its own. Because awards are
reimbursement-based, there is no advance payment to recover.

Would qualify for reimbursement:

• A solar array that is installed and operating, even though the planned battery is not.
• Air sealing that is completed, even though the planned insulation is not.

Would not qualify:

• An electrical panel or service upgrade completed without the heat pump, EV charger, or other equipment it was meant to support.

If you learn that your project may not be completed as approved, you must notify LPEA in writing within 30 days and describe the issue. Early communication is strongly encouraged. Delayed or absent notification is a program violation and will be considered in any determination about future program eligibility. An organization that abandons an awarded grant without notifying LPEA is in violation of the grant agreement, and such actions may jeopardize eligibility for future cycles. An organization that notifies LPEA promptly and works in good faith to maximize completed work before the deadline remains eligible to apply in future cycles.

Organizational Changes

If your organization dissolves, merges, loses tax-exempt status, or transfers the project site after the award date, notify LPEA in writing within 30 days. LPEA will determine within 30 days of that notification whether the grant may transfer to a successor organization. A grant may transfer if the successor meets all current eligibility requirements, assumes responsibility for the approved project scope, and executes a revised grant agreement. If no eligible successor exists, any remaining unreimbursed balance is forfeited and the grant agreement is closed. Reimbursements already paid for verified completed work are not subject to recovery.

Expense Determination Appeals

If you believe an eligible expense has been incorrectly disallowed, you may submit a written appeal to the Director of Grid Innovations and Programs within 30 days of receiving the staff determination. The appeal should identify the disputed expense, the amount, and the basis for your position. The Director will issue a written response within 15 business days, and that determination is final. Appeals submitted after the 30-day window will not be considered.

Scope Changes

Scheduling adjustments that don’t affect the completion deadline and minor equipment substitutions from a different manufacturer can be handled directly with the program manager. Changes to project category, site, total budget, or core technology require written notification to and approval from the program manager. Contact the program manager if you’re unsure whether a change needs to be reported.