In addition, many states have innovative financial mechanisms, such as third-party financing, loans, etc. The SEP administers disbursement of PVE funds. In addition to SEP grants, DOE provides funding opportunities for a wide range of projects in the states. Formula Grants Formula grants are one of two types of grants available to states through the State Energy Program. These grants are given to states using Congressionally appropriated funds and are distributed according to a formula that depends on the state's size, population, etc.
States can use formula grants to meet the specific needs of their particular end-use energy sectors.
Each state sets its own priorities, and, according to its individual State Energy Plan, emphasizes development and deployment of technologies appropriate for its region. There are both mandatory and optional activities that can be funded by formula grants. For general information about the federal rules governing this program, see the Code of Federal Regulations at 10 CFR Part 420. Special Projects Special Projects grants are the second type of SEP grant. Unlike formula grants, Special Projects are funded entirely by EERE technology programs and are awarded on a competitive basis.