EPA announces parameters for $27 billion clean energy investment grant competition

The U.S. Environmental Protection Agency (EPA) has announced initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, created under the Inflation Reduction Act. EPA published two Federal Assistance Listings outlining key parameters of the grant competitions that will ultimately award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country.

EPA will hold two competitions to distribute the funding — a $20 billion general and low-income assistance competition and a $7 billion zero-emissions technology fund competition.  The $20 billion competition will award competitive grants to eligible nonprofit entities that will collaborate with community financing institutions like green banks, community development financial institutions, credit unions, housing finance agencies and others. 

The $7 billion competition will award grants to states, Tribes, municipalities, and eligible nonprofit entities to enable the deployment of residential rooftop solar, community solar and associated storage and upgrades in low-income and disadvantaged communities.  The programs will align with the Justice40 Initiative, which directs that 40% of the overall benefits of certain federal investments flow to disadvantaged communities.

The notice of funding opportunities for the competitions are expected to open by this summer.