State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state’s energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026.

For more information, see the SEP website.

(Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)

Jurisdiction: Federal

Type: Incentives

Agency: U.S. Department of Energy

Amended: Nov 15, 2021

Technologies: Biodiesel, Ethanol, EVs, Fuel Economy / Efficiency, Hydrogen Fuel Cells, Natural Gas, PHEVs, Propane (LPG)

See all Federal Laws and Incentives.