The U.S. Department of Energy (DOE) Office of Fossil Energy and Carbon Management (FECM) has announced a Funding Opportunity Announcement (FOA) for the Utilization Procurement Grants Program (UPGrants), financed under the Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law, or BIL). This funding aims to support the DOE's goal of a zero-carbon electricity system by 2035 and net-zero emissions across the U.S. economy by 2050. The UPGrants program allocates up to $100 million over four years (2023-2026) to fund demonstration grants for eligible entities that procure and utilize commercial or industrial products derived from anthropogenic carbon oxides, like CO2 and CO captured from industrial and power operations. The program seeks to demonstrate the viability and environmental benefits of low-carbon products and encourage market adoption, particularly in the context of public procurement.

The FOA focuses on awarding grants to state and local governments, public utilities, and agencies that will procure carbon-derived products demonstrating a life-cycle greenhouse gas emissions reduction over conventional counterparts. These products can include carbon-cured concrete, synthetic aggregates, and animal feed, among others. Each proposed product must have an approved life-cycle analysis (LCA) reviewed by the National Energy Technology Laboratory (NETL) and meet cost criteria that cap the price at no more than twice that of similar incumbent products. This FOA prioritizes sustainable procurement and aims to build demand for innovative, lower-carbon materials through public sector procurement, aligning with initiatives like the Federal Buy Clean Initiative to promote sustainable U.S.-made products.

Eligible applicants include U.S. states, local governments, public utilities, and agencies, with entities required to be domestic. Subrecipients may include institutions of higher education, nonprofits, and for-profit entities within the United States. Foreign entities can participate as subrecipients under certain conditions but must receive DOE approval. Applicants must adhere to a 50% cost-sharing requirement, where contributions can come from non-federal sources, including state or local government funding, but not from federal funds or revenue from future activities. Cost-sharing and budget details must be well-documented in applications, with explicit sources, verification, and adherence to federal cost principles.

The FOA will fund projects over a 12-24 month period with awards ranging from $50,000 to $500,000, depending on project scope and scale, with 50 awards expected per year across the program’s duration. Each funded project must demonstrate a clear plan for product procurement and use, detailing the end-use of the carbon-derived product, displaced incumbent products, performance evaluation methods, and alignment with sustainable procurement goals. The application must also include three comparable quotes: one from a carbon conversion vendor and two from traditional product suppliers, as well as a vendor commitment letter confirming compliance with the FOA’s eligibility and environmental impact standards.

Applications must also include a Community Benefits Discussion, outlining how the project aligns with equity and environmental justice goals, especially the Justice40 initiative, which seeks to direct 40% of climate and clean energy investment benefits to disadvantaged communities. Applicants should discuss potential workforce impacts, local engagement, and community benefits in disadvantaged areas. DOE will provide additional guidelines and support through a Teaming Partner List available on FedConnect, allowing organizations to form partnerships and expand project expertise.

All application submissions begin with a Concept Paper, which, if encouraged by DOE, can proceed to a Full Application. Compliance with DOE's structured format, page limits, and form requirements is essential. Further requirements include a signed Project Description and Assurances Document (PDAD) and documentation of sustainable procurement objectives. Selection criteria focus on technical viability, community benefits, sustainability alignment, and the potential for greenhouse gas reduction.