Kristen Cheriegate | ICAST Policy Analyst
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Greenhouse Gas Reduction Fund Competition Selectees Chosen
The Environmental Protection Agency (EPA) has announced its selections under the $27-billion Greenhouse Gas Reduction Fund (GGRF).
Eight awards totaling $20 billion, were made under the National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA):
- The goal is to create a national clean financing network for clean energy and climate solutions across sectors, especially in low-income (LI) and disadvantaged communities (DACs).
- Selected grantees include Climate United Fund ($6.97 billion award), Coalition for Green Capital ($5 billion award), Opportunity Finance Network ($2.29 billion award), Native CDFI Network (400 million award). Follow this link for the full list.
- Over $14 billion will be dedicated toward LI and DACs, including over $4 billion for rural communities as well as almost $1.5 billion for Tribal communities.
- Selectees will reduce or avoid up to 40 million metric tons of climate pollution annually and mobilize almost $7 of private capital for every $1 of federal funds, turning $20 billion of public funds into roughly $150 billion of public and private investment over the next seven years.
Sixty awards, totaling $7 billion, were made under the Solar for All (SFA) competition:
- The program will provide grants, low-cost financing, and services such as siting, permitting, and interconnection. SFA is estimated to deliver solar to more than 900,000 LI and disadvantaged households nationwide, expanding existing solar programs and launching new ones. At least 25 states and territories are launching programs in regions where there previously has never existed a substantial LI solar program.
- Selected applicants will serve households in all 50 states, the District of Columbia, Puerto Rico, territories, and Tribes. Follow this link to learn more about the selectees.
- The projects are estimated to generate $350 million in annual savings on households’ electric bills and to reduce 30 million metric tons of CO2 equivalent emissions cumulatively over five years.
First Round of Funding Announced under Energy Future Grants Program
The U.S. Dept. of Energy (DOE) recently announced awards of $27 million for state, local, and tribal governments to plan innovative clean energy programs. The Energy Future Grants (EFG) Program provides financial and technical assistance to support multijurisdictional partnership efforts to advance innovative clean energy programs to enhance energy affordability, access, and community opportunities.
This first round of EFG competitive funding went to 31 local governments, seven states, and two tribes, as well as 253 subrecipients, including additional government partners, community benefit organizations, non-profits, and others. These are planning grants for projects ranging from solar developments to clean energy microgrid development, transportation and building electrification, and more.
DOE will release additional information on EFG implementation grants in Spring 2025.
Biden Administration Minimum Energy Standards for Affordable Housing
The U.S. Dept. of Housing and Urban Development (HUD) and the U.S. Dept. of Agriculture (USDA) announced new minimum energy standards for new single-family and multifamily homes. Standards reduce monthly energy bills for households in HUD and USDA-supported, new-construction properties through cost-saving insulation, efficient windows, HVAC, and other solutions.
LI households spend three times more of their income on energy bills than the national average. Some highlights from the updates:
- HUD estimates approximately 165,000 new housing units could be impacted by this Notice each year.
- In new multifamily housing four stories and above, the new standards save households $224 per apartment per year.
- On a national average, a homebuyer can expect to save an estimated $960 on their energy bills in the first year or a total of $25,100 over the life of a 30-year mortgage.
- HUD estimates that the updated minimum energy standards will reduce as much as 6.35 million metric tons in carbon emissions over 30 years, generating an annual societal cost savings of $13.9 million.
Note that The Energy Independence and Security Act of 2007 requires HUD and USDA to jointly adopt the latest energy standards.*