Kristen Cheriegate | ICAST Policy Analyst
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Biden-Harris Administration Announces $550 Million to Advance Environmental Justice
The Environmental Protection Agency (EPA) announced the availability of $550M from President Biden’s Inflation Reduction Act (IRA) to expedite investments through EPA’s new Environmental Justice Thriving Communities Grantmaking (EJ TCGM) program. This program will fund up to 11 entities to serve as grantmakers that will develop an efficient, simplified process for organizations to apply for grants that address environmental harms and risks. Eligible entities include community-based nonprofit organizations and partnerships thereof (additional information can be found in EPA’s announcement). For the potential 11 selected entities, EPA intends to make awards of up to approx. $50M each, to be funded incrementally over a three-year period. The deadline to apply is May 31, 2023.
EPA Announces Initial Program Design of Greenhouse Gas Reduction Fund (GGRF)
As ICAST previously reported, the IRA provided the EPA $27B for a new GGRF, with the aim of mobilizing financing and leveraging private capital for clean energy and clean air investments across the country. EPA recently released initial guidance on the Fund, announcing that GGRF dollars will be distributed through two competitive grant competitions. Approx. $20B will be awarded to create a national network of eligible nonprofits that will facilitate the technical assistance and capacity-building necessary to strengthen the ecosystem of community-based organizations, financial institutions, and others, [that is] required to accelerate the transition to an equitable net-zero economy and catalyze the jobs of the future. Seven billion dollars will be awarded to states, tribes, municipalities, and eligible nonprofits to enable the deployment of residential rooftop solar, community solar, and associated storage and upgrades in low-income and disadvantaged communities. The EPA anticipates opening applications in the early summer of 2023.
New American Council for an Energy-Efficient Economy (ACEEE) Policy Brief on Commercial Building Incentives
ACEEE’s brief, Commercial Building Incentives: Programs for new construction and upgrades in the Inflation Reduction Act and other recent federal laws, provides summaries of “programs that will or could provide significant resources for energy efficiency retrofits and efficient new construction for commercial buildings.” IRA and the Infrastructure Investment and Jobs Act (IIJA) fund multiple programs and tax incentives to improve the energy efficiency of new and existing commercial and public buildings. q. Ft., the minimum savings threshold is reduced to 25%, and a new provision for retrofits of existing buildings exists. Other highlights in the brief include the GGRF and the Energy Efficiency Revolving Loan Fund Capitalization Grant Program.
Department of Housing and Urban Development (HUD) Awards Funds for Investments in Public Housing
HUD recently awarded $3.16B to nearly 2,770 public housing authorities (PHAs) across the country to enable them to make capital investments in their public housing stock. The grants are provided through HUD’s Capital Fund Program, which offers annual funding to all PHAs to build, renovate, and/or modernize the public housing in their communities. Funds may be used to complete large-scale improvements such as replacing roofs or making energy-efficient upgrades to heating systems and installing water conservation measures.
Treasury and IRS Release Proposed Guidance on New Clean Vehicle Provisions of the Inflation Reduction Act
Treasury reported that the Notice of Proposed Rulemaking (NPRM) provides clarity and certainty to manufacturers on the IRA requirements that vehicles eligible for the clean vehicle credit undergo final assembly in North America and do not exceed a Manufacturers Suggested Retail Price of $80,000 for a van, pickup truck, or sport utility vehicle, or $55,000 for any other vehicle. It also explains how manufacturers may satisfy the critical mineral and battery component requirements under the IRA. The NPRM is filed for public inspection and will be published in the Federal Register on April 17, 2023.