Since nonprofits are tax-exempt entities, they cannot currently benefit from many energy support programs because the programs are often structured in the form of tax credits 

Senators’ provision will create a grant program to help nonprofits—including schools, hospitals, faith-based organizations, and youth centers—afford energy efficiency upgrades 

Washington, DC – U.S. Senators Amy Klobuchar (D-MN) and John Hoeven (R-ND) today announced that their provision based on their Nonprofit Energy Efficiency Act to help nonprofit organizations save money on energy efficiency upgrades passed the Senate Committee on Energy and Natural Resources as part of a comprehensive energy package. Since nonprofits are tax-exempt entities, they cannot currently benefit from many energy support programs because the programs are often structured in the form of tax credits. The senators’ provision, which passed as part of the Energy Policy Act of 2015, will help nonprofits afford energy efficiency upgrades by creating a grant program to assist nonprofit organizations—including schools, hospitals, faith-based organizations, and youth centers—improve the energy efficiency of their buildings and generate renewable energy.

“From schools to hospitals to places of worship, nonprofits serve our communities and deserve the same opportunity as other organizations to make affordable energy efficiency upgrades,” Klobuchar said. “This commonsense provision would boost America’s energy independence while helping nonprofit organizations save money on energy efficiency improvements, which in turn will help them do even more good work in our communities.”

“Our legislation will help churches, hospitals and other non-profit organizations to make their facilities more energy efficient,” said Hoeven, a member of the Senate Energy Committee. “Providing these institutions with the opportunity to make efficiency upgrades will help these important organizations to save money, so they can devote more of their resources to the valuable services they provide to the public.”  

Klobuchar and Hoeven’s legislation—The Nonprofit Energy Efficiency Act—would provide $10 million each year for the next five years to create a pilot grant program at the U.S. Department of Energy (DoE) to help nonprofits make their buildings more energy efficient. The grants would promote energy efficiency by supporting upgrades to existing infrastructure as well as the installation of renewable energy generators and heaters. Nonprofits could apply for grants up to 50 percent of the total cost of the energy efficiency program—up to $200,000. The legislation contains an offset from other DoE program resources. It is supported by the National Council of Churches, the YMCA of the USA, United States Conference of Catholic Bishops, and the Union of Orthodox Jewish Congregations, among other organizations.

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