Transitioning to a clean energy economy is one of the most pressing challenges of our time, and the need for a skilled workforce to support this transition is greater than ever.
Recognizing the need for robust talent pipelines, federal and state governments are investing heavily in building the clean energy workforce of the future. Understanding these investments can help you support your own clean energy workforce development programs.
Below, we’ll explore important grant opportunities available at the federal and state levels, focusing on major funding streams from the Inflation Reduction Act, the Bipartisan Infrastructure Law, and state-level programs.
1. Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA), signed into law in 2022, represents one of the most substantial investments in clean energy and climate action in U.S. history. This landmark legislation allocates billions of dollars to support the transition to a low-carbon economy, including specific provisions for workforce development.
Clean Energy Workforce Development Funding Under the IRA
The IRA sets aside substantial funds specifically for training programs aimed at building a clean energy workforce. Most of this funding is tied to larger goals, such as climate readiness and increasing access to clean energy, and supports workforce training as a key component of building a robust clean energy sector.
The majority of funding authorized by the IRA is administered by the Environmental Protection Agency, the Department of Commerce, and the Department of Energy. Much of the money is distributed directly to state agencies. Key grant programs authorized or expanded by the IRA that provide funding opportunities for workforce development include:
- Clean Heavy Duty Vehicles (EPA)
- Climate-Ready Workforce (DOC)
- Community Change Grants Program (EPA)
- Environmental and Climate Justice Block Grants (EPA)
- State-Based Home Efficiency Contractor Training Grants (DOE)*
*Also known as Training for Residential Energy Contractors (TREC)
The IRA also authorizes funding to states to support activities such as decarbonization and the adoption of updated building energy codes. How these funds are used varies from state to state. See the section below for more information on state-level initiatives.
Accessing IRA Funds
If you are interested in accessing IRA funding, the best place to start is usually your state-level agencies, as they can provide insight into how money received from the federal government is being used within your state.
Additionally, there are some competitive IRA-funded grant programs, like NOAA’s Climate Ready Workforce or EPA’s Community Change Grants Program, to which coalitions of community-based organizations, local government agencies, and industry partners can apply directly. These opportunities are posted on grants.gov and the website of the applicable federal agency.
However, keep in mind that federal opportunities are best for large organizations with significant local or regional influence.
To maximize the chances of securing funding, programs should partner with local industry leaders, workforce system partners, community-based organizations, community colleges, and other educational institutions to create robust training ecosystems that fulfill the goals of the IRA while also meeting the needs of workers and employers.
2. Bipartisan Infrastructure Law (BIL)
The Bipartisan Infrastructure Law (BIL), enacted in 2021, also plays a critical role in advancing clean energy workforce development. This law provides funding for a wide range of infrastructure projects, many of which are tied directly to clean energy, such as the development of electric vehicle (EV) charging networks and the modernization of the electrical grid.
Workforce Development Provisions in the BIL
Under the BIL, significant funds are allocated to support the training and development of a workforce capable of implementing the infrastructure improvements envisioned by the law.
While clean energy is not the sole focus of the BIL, significant funding is directed towards supporting clean energy infrastructure. Key grant programs authorized or expanded by the BIL that provide funding for clean energy workforce development include:
- Building Training and Assessment Centers (DOE)
- Career Skills Training (DOE)
- Energy Auditor Training Grant Program (DOE)
- Grid Resilience and Innovation Partnerships Program (DOE)
- Industrial Research and Assessment Center Implementation Grants (DOE)
- Weatherization Assistance Program (DOE)
The BIL also includes additional funding for the Appalachian Regional Commission, Delta Regional Authority, and Denali Commission, each of which administers dedicated workforce development grant programs.
Applying for BIL Funds
As with the Inflation Reduction Act, individual organizations have the best chance of accessing BIL-authorized funding at the state and local levels.
Your state department of energy or transportation can help your organization understand what BIL funding your state government has received and how it’s being spent. Your regional workforce board can also provide information on available funding and upcoming opportunities.
For larger organizations with experience in a specific clean-energy sector, applying to BIL-related grant opportunities such as DOE’s Career Skills Training Program or Weatherization Assistance Program Enhancement and Innovation Grant may also be a possibility.
Regardless of the route you’re taking, it’s important to have a good grasp on the broader infrastructure goals of the BIL and align your training objectives accordingly.
For example, programs should emphasize the creation of a workforce that can support long-term infrastructure improvements such as the development of sustainable transportation systems and resilient energy grids. Collaboration with utility companies, transportation agencies, and other stakeholders can strengthen grant applications by demonstrating a clear path from training to employment in these critical sectors.
3. State-Level Programs
While federal funding plays a significant role in clean energy workforce development, many states have also made substantial investments of their own in clean energy training. These state-level initiatives can provide additional resources for training programs and often focus on specific local needs and priorities.
Examples of State-Level Grant Programs
Beyond federal funding, many states are investing their own resources in supporting clean energy.
For example, several states such as Massachusetts and Maryland, have created state-authorized Clean Energy Centers dedicated to overseeing an equitable clean energy transition. In other states, state energy offices and economic development agencies have made promoting clean energy an explicit priority.
These agencies, along with public utilities such as New York Power Authority, often administer grant programs and other incentives designed to support clean energy.
Some examples of state-level grants for clean energy training include:
- Green Workforce Grant (New Jersey Economic Development Authority)
- Clean Energy Workforce Development Program (Michigan Department of Environment, Great Lakes, and Energy)
- Clean Energy Access Grant Account (California Public Utilities Commission)
Navigating State-Level Funding Opportunities
The best strategy for navigating state-level funding opportunities is to develop a strong understanding of the agencies supporting clean energy in your state and to invest in building relationships with the staff members of those agencies.
Additionally, understanding relevant clean energy legislation, policies, and priorities in each state can go a long way towards making sense of the grant programs offered as part of these larger initiatives.
Launch Your Clean Energy Training Program
Making the switch to a clean energy economy will require a significant investment in workforce development, and federal and state governments are stepping up to fund it.
As a result, the Inflation Reduction Act, Bipartisan Infrastructure Law, and various state-level programs offer many funding opportunities for organizations offering clean energy training.
However, few of these initiatives fund workforce development in isolation. Most provide money for workforce development as part of larger strategies promoting the clean energy transition. Consequently, collaboration with local industry leaders, educational institutions, and state agencies is key for organizations looking to understand and capitalize on these funding opportunities..
Interested in launching or enhancing your own clean energy workforce training program? Interplay Academy offers an out-of-the-box solution for both clean energy and solar career pathways. Interplay Academy takes learners from zero-skills to job ready with expert-created content, 3D simulations, VR, and assessments. Schedule a demo with one of our workforce development specialists today.
