The U.S. Environmental Protection Agency shared its initial guidance on the design of the Greenhouse Gas Reduction Fund program.
The Greenhouse Gas Reduction Fund, which was established by the Inflation Reduction Act, will award nearly $27 billion to leverage private capital for clean energy and clean air investments, according to a Feb. 14 news release. The fund will be disbursed via two competitions – the $20 billion General and Low-Income Assistance Competition and the $7 billion Zero-Emissions Technology Fund Competition.
“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 S. Regan said in the release. "The initial program design announced today will ensure the fund fulfills its mandate to deliver benefits to all in a transparent and inclusive fashion.”
The EPA has also expressed the intention to align this initiative with President Joe Biden's Justice40 Initiative, which requires 40% of federal investments are directed toward those in disadvantaged communities, the release reported. This initiative allows the agency to provide assistance to those most impacted by climate change, allowing them access to critical projects such as renewable energy infrastructure, efficient transportation networks and improved air quality measures.
“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,” Regan added, according to the release.
The EPA aims to open competitions for funding under this program as early as summer 2023, the release reported. The program design guidance follows a t stakeholder engagement effort with input collected from state, local and Tribal governments, community financing institutions, environmental justice organizations, industry groups and labor and environmental finance experts.
“The Greenhouse Gas Reduction Fund is one of President Biden's generational investments to build an equitable clean energy economy from the bottom up and the middle out,” Senior Advisor to the President for Clean Energy Innovation and Implementation John Podesta said in the release. “It will create good-paying manufacturing jobs while helping to tackle climate change-the greatest challenge of our time.”
The EPA also announced a national Community Roundtable series to introduce the Greenhouse Gas Reduction Fund to communities across the U.S. and gain insight into community-level solutions that could potentially be supported by the fund, the release reported. The initiative has been met with praise from senior politicians, including Sen. Chuck Schumer, who said it was “a giant leap forward for bringing clean energy to communities who are too often left behind.”
