Community Energy Management (CEM) Program

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) Energy Unit administers the Community Energy Management (CEM) Program to assist Michigan communities in improving energy management and accelerating the adoption of energy efficiency and renewable energy solutions. As part of the EGLE Catalyst Communities Initiative, the program supports local public officials in preparing for climate impacts, cutting energy costs, eliminating energy waste, and driving measurable reductions in greenhouse gas emissions aligned with the MI Healthy Climate Plan.

Eligible applicants must be physically located in Michigan and include local governments (such as cities, villages, townships, counties, emergency service departments, libraries, and economic development authorities), tribal governments, and other public service entities including non-profits providing critical community services. Public schools, universities, and recreation-based entities are ineligible. Past recipients of CEM grants must wait at least one program year following their most recent award before applying again. Priority consideration is provided to applicants that have not received CEM grant funding in the past two years. All applicants must provide an active UEI from SAM.gov and be registered vendors in the State of Michigan SIGMA Vendor Self Service (VSS) system.

Eligible projects must focus on energy management, energy efficiency, renewable energy, fleet electrification, EV charging infrastructure, sustainable financing solutions, or clean energy workforce development. Example activities include benchmarking energy use, conducting ASHRAE Level I or II energy audits, carrying out building envelope or HVAC retrofits, deploying Level 1/Level 2/DC fast-charging equipment within existing parking footprints, purchasing alternative fuel fleet vehicles, or deploying solar arrays up to 60 kW DC and battery storage up to 1,000 kWh. Renewable energy projects will only be considered after all, or a majority of, energy efficiency upgrades identified in an ASHRAE Level II audit are completed and must comply with NEPA categorical exclusions. Ineligible activities include demonstration of non-commercial technologies, projects not conducted in Michigan, building repairs, equipment over 60 kW DC solar or 1,000 kWh storage, and projects failing to comply with Build America, Buy America Act (BABA) standards.

Applications are evaluated and awarded on a first-come, first-served rolling basis until all funds are expended or until August 31, 2027. Applicants must submit the online application along with all required documentation, including an Approved Budget Form and narrative, a detailed project timeline, an organizational chart, and recent financial statements or single audit reports. When applicable, submissions must also include the Certificate of Indirect Costs, State Historic Preservation Office (SHPO) Section 106 review materials, NEPA documentation, or BABA waiver forms. Selected applicants must execute a grant agreement within 45 days of notification, and all grant activities must be completed with reimbursement requests submitted within program deadlines.