Energy Efficiency & Conservation

In the fall of 2009, the Department for Local Government (DLG) entered into an agreement with the Kentucky Energy and Environment Cabinet to administer the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) program to units of local government that were not eligible for the direct EECBG entitlement grants. EECBG was designed to invest in the cheapest, cleanest and most reliable energy technologies – energy efficiency and conservation.

The program has allowed local communities to make strategic investments – from efficiency upgrades in lighting and HVAC systems to investments in solar and other renewable energies - to meet the long-term goals for energy independence by reducing energy consumption. Local facilities benefitting from the program have ranged from water treatment plants to municipal buildings to community and senior centers.

In implementing strategies to reduce fossil fuel emissions and reduce total energy use, the EECBG Small Cities and Counties Initiative has provided over $6.25 million to assist local governments, while entitlement allocations to the twenty largest cities and counties totaled $14,955,500. DLG received 112 applications requesting over $13 million - demonstrating considerable demand for assistance for local governments to implement efficiency and conservation measures.

Kentucky recently received a federal grant to promote energy savings performance contracting as a vehicle for local governments to undertake and finance energy efficiency improvements. DLG will administer the grant, conducting education and outreach activities, providing legal and procurement guidance, as well as technical assistance to units of local governments and their subsidiaries.

In addition, DLG has been awarded $1.2 million from the funds the state received under the 2011 settlement agreement between the U.S. Environmental Protection Agency and the Tennessee Valley Authority (TVA) to support continuation of the EECBG program. The Energy Efficiency and Conservation for Local Governments (EEC) Program will build on the work begun with EECBG by providing grants to local governments to reduce their energy consumed.

These programs, along with a new revolving loan fund to finance energy efficiency improvements, will make DLG a resource for local governments working to reduce their energy consumption, thereby reducing greenhouse gas emissions, and benefitting taxpayers through lower utility costs for local governments.

Program guidelines are available at

Land fill methane outreach program (LMOP)
Energy-Savings Performance Contracting

Energy-Savings Performance Contracting

DLG has been working to educate local governments about managing their rising energy costs through energy-savings performance contracting (ESPC). DLG offers assistance in understanding the technical and procurement aspects of ESPC, which promotes a comprehensive approach to energy efficiency and conservation retrofits and upgrades that can include energy-consuming infrastructure from street and traffic lighting to municipal buildings to water and wastewater facilities.

Local government facilities often suffer from deferred maintenance and antiquated infrastructure. The money saved by decreased energy use and maintenance costs will cover the costs of the energy-saving improvements. This program helps local officials take advantage of energy savings, through guaranteed performance contracts, and address infrastructure needs, save precious local tax dollars over time and create jobs.

View full brochure HERE.

Helpful Links

EPAD Document

Volkswagen Settlement


Adair County ESPC Case Study (.pdf - 440 kb)
Bourbon County ESPC Case Study (.pdf - 411 kb)
Boyle County ESPC Case Study (.pdf - 677 kb)
Carter County ESPC Case Study (.pdf - 586 kb)
EEC Grant Application 2019 (.doc - 160 kb)
EEC Grant Guidelines 2019 (.pdf - 157 kb)
Energy Savings Strategies in WWTP 09-12.pdf (.pdf - 1212 kb)
ESPC brochure (.pdf - 2820 kb)
Financing Energy Savings Performance Contracts (docx - 208 kb)
Greensburg ESPC Case Study (.pdf - 260 kb)
Jessamine County ESPC Case Study (.pdf - 478 kb)
KY EPAD Handbook (.pdf - 696 kb)
Pike County ESPC Case Study (.pdf - 613 kb)
Pulaski County Case Study (.pdf - 434 kb)