EPA Announces $20 Billion in Clean Energy Grants
The Environmental Protection Agency (EPA) on Thursday announced a total of $20 billion in grants under the Greenhouse Gas Reduction Fund (GGRF) that will finance clean energy projects, especially for small- and medium-sized enterprises (SMEs). The GGRF is a $27 billion program in all, and was enacted in the Inflation Reduction Act of 2022. It is comprised of three programs, two of which – the Clean Communities Investment Accelerator ($6 billion) and the National Clean Investment Fund ($14 billion) – were the subjects of Thursday’s announcement. Grants totaling $7 billion for the third program, Solar for All, are expected later this year.
The initial grantees – eight in total – are large organizations and coalitions that will create a national clean financing network in order to fund tens of thousands of projects for sub-grantees over the coming years. The recipients have three main mandates with this funding: First, to reduce or avoid 40 million tons of climate pollution annually, by funding clean energy projects. Second, to leverage private investment of at least $7 per every dollar granted; the EPA estimates that total public and private investment will reach $150 billion and create hundreds of thousands of jobs. And finally, over 70% of the funds will go to low-income and disadvantaged communities, 20% to rural communities, and 7% to tribal communities. All of the funds granted under the Clean Communities Accelerator must be directed to low-income and disadvantaged communities.
The National Clean Investment Fund is primarily focused on establishing national clean financing institutions. It seeks to work with the private sector to mobilize capital for clean energy projects at scale. The three organizations receiving this funding are Climate United Fund, which received $6.97 billion, Coalition for Green Capital, which received $5 billion, and Power Forward Communities, which received $2 billion.
The Clean Communities Investment Accelerator is meant to establish hubs to provide funding and technical assistance to community lenders in low income and disadvantaged communities, with 100% of funding going toward these communities. These hubs are focused on building the capacity of community lenders so they can continue financing projects for years to come. Various awards are available to these community lenders for capitalization funding and technical assistance. The five organizations funded by this program are Opportunity Finance Network with $2.29 billion, Inclusiv with $1.87 billion, Justice Climate Fund with $940 million, Appalachian Community Capital with $500 million, and Native CDFI Network with $400 million.
For more information on specific grantees, visit the EPA’s website here.
For more information on the Greenhouse Gas Reduction Fund, read NEMWI’s recent report here.
Reported by NEMWI Intern Owen Macdonald, Gettysburg College.
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