Existing utility deployment processes will need to change to meet DOE’s requirements for reporting compliance
Federal funding awards introduce several net-new activities relative to a utility’s traditional project deployment model. Projects supported by federal funds are tied to specific agency requirements with contractually bound milestones and timelines put in place to ensure funds are deployed in a responsible and diligent manner.
For many utilities, this means defining new processes, activities, and stakeholder engagement strategies to ensure an awardee can provide the appropriate reporting cadence over the subscribed performance period and have the program structure to deploy the project effectively.
Following an award selection notification, a negotiation period with the Department of Energy (DOE) begins and can last for several months—often driven by the complexity of the project itself, number of partners and subrecipients, and individual legal considerations. The utility and DOE will engage in a series of negotiation discussions to assess and agree on the proposed project scope, risk assessments, and final cost/price of project components.
Following negotiations and contracting with the DOE, organizations will need to establish compliance procedures that adhere to DOE-mandated reporting requirements, internal stakeholder needs, and project management specifications. Awarded utilities are contractually obligated to develop and maintain a series of unique grant compliance reports and documentation that are submitted at a regular cadence to the DOE throughout the project performance period.
This compliance reporting process ultimately yields accountability changes for an awardee as the DOE’s requirements get interfaced with existing utility project deployment processes—which are often different from one another. This can create a burden on an awardee’s program management office (PMO) that is executing the project and may necessitate additional training, resources, and internal policies. Accountability changes are needed as the introduction of federal oversight demands heightened scrutiny and transparency, potentially shifting responsibilities and requiring tighter internal controls. These adjustments can strain the utility's operational efficiency and necessitate a reevaluation of roles and processes to ensure compliance.
Taking into account the long-term nature of these grants, and that internal shifting of roles and responsibilities, organizational changes, and system and tool changes may occur during this period, consider how an awardee can ensure that from Year 1 until the final day of the grant’s performance period, they are measuring and reporting progress per DOE requirements in the exact same, consistent manner.
Awarded utilities will need to establish reporting compliance framework for federal funds—documenting processes, managing reporting inputs, and establishing owners—and integrate this into established program management and deployment teams.
Federal agencies will expect organizations have the appropriate governance structure and policies in place to provide assurance that it can comply with the federal regulations that come with receiving federal dollars. This may mean changes to existing written policies and procedures, or creation of net new procedures such as:
A successful award may require the awardee to modify its PMO approach and structure. Projects will need to be deployed according to firm milestones and deadlines, with completion dates tied to prescribed funding performance periods for the grant program. As such, a robust project management plan and the supporting financial management, risk management, vendor management, and schedule management will be required to deliver the project—and will need to be incorporated into a utility’s PMO:
Successfully navigating the complexities of a DOE GRIP grant requires utilities to adopt a multifaceted approach that integrates new processes, stringent compliance measures, and robust project management frameworks. From the pre-award negotiation phase to the final reporting requirements, utilities must ensure meticulous planning, execution, and continuous monitoring to meet DOE mandates and achieve project goals.
Here are five key takeaways for utilities to ensure successful grant execution:
By focusing on these key areas, utilities can not only meet the DOE's stringent requirements but also enhance their operational efficiency and project outcomes. The journey from award to execution is marked by a series of critical steps, each demanding a high level of diligence and adaptability. Establishing a compliance framework, aligning internal and federal reporting processes, and maintaining rigorous program governance are essential to mitigate risks and ensure accountability.