EPA releases first details on Greenhouse Gas Reduction Fund and its nearly $27B in award promises
The U.S. Environmental Protection Agency (EPA) released the first step in the design of the Greenhouse Gas Reduction Fund (GGRF) program this week through two Federal Assistance Listings detailing the parameters of its grant competitions that will ultimately award $27 billion.
This program was created by the Inflation Reduction Act (IRA) of 2022. Through a series of grant competitions, it will tap public and private capital for clean energy and clean air investments across the country. The GGRF’s initial design was built on input granted from the state, local and tribal governments, community financing and environmental justice organizations, industry and labor groups, and environmental finance experts.
“Thanks to President Biden’s Inflation Reduction Act, the Greenhouse Gas Reduction Fund will unlock historic investments to combat the climate crisis and deliver results for the American people, especially those who have too often been left behind,” EPA Administrator Michael Regan said. “The initial program design announced today will ensure the fund fulfills its mandate to deliver benefits to all in a transparent and inclusive fashion. With $27 billion from President Biden’s investments in America, this program will mobilize billions more in private capital to reduce pollution and improve public health, all while lowering energy costs, increasing energy security, creating good-paying jobs, and boosting economic prosperity in communities across the country.”
Funds will be distributed through two competitions operating under the GGRF. For the General and Low-Income Assistance Competition, $20 billion will be made available for participants, while another $7 billion will be provided through the Zero-Emissions Technology Fund Competition. Barring any surprises, both should open by summer 2023. In the meantime, EPA will hold a national community roundtable series to promote engagement and education on the GGRF and the community-level solutions it could assist.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), a national trade association working to support the U.S. energy transition, was among those to praise the EPA’s latest announcement. She labeled it beneficial to quickly and equitably decarbonize the grid and garner new investments.
“We are glad to see the EPA move forward with guidance to get the Greenhouse Gas Reduction Fund off the ground,” Ross Hopper said. “This program will fund the organizations best positioned to help low-income and disadvantaged communities get access to solar energy through grants and other financial assistance, including specifically for distributed solar and storage technologies.”
Notice of funding opportunities for both competitions are expected to follow by early summer, according to the EPA. The General and Low-Income Assistance Competition will fund competitive grants for eligible nonprofits that collaborate with community financing institutions to invest in projects that reduce pollution and lower energy costs. The Zero-Emissions Technology Fund will award states, Tribes, municipalities, and eligible nonprofit organizations to help with the deployment of residential rooftop solar, community solar, and affiliated storage and upgrades in low-income and disadvantaged communities.
