On the second anniversary of the Inflation Reduction Act, the U.S. Environmental Protection Agency (EPA) announced that it will be dedicating $27 billion in grants. The Greenhouse Gas Reduction Fund recipients will be selected through three different competitions.
In 2022, the Inflation Reduction Act enhanced or created over 20 tax incentives for clean energy and manufacturing. It reduced the cost of building clean energy projects and equipment. According to the U.S. Department of the Treasury, the act has already created 271,713 new jobs, with more to come in the future. Now, the Greenhouse Gas Reduction Fund aims to follow in its footsteps.
The EPA’s 14 billion dollar National Clean Investment Fund and the 6 billion dollar Clean Communities Accelerator create a network for clean energy and climate situations all over the country that provides the ability to create programs to give communities access and investment capital to build more sustainable economies. In order to be selected, those eligible must pass through a variety of criteria, all posted on the EPA’s website.
Under the National Clean Investment Fund, those selected will partner with the private sector to create new financing for new clean technology projects all over the country. The Clean Communities Investment Accelerator will allow groups to create hubs that provide assistance to community leaders working in disadvantaged areas to develop clean energy projects.
Additionally, the Solar for All program has been named as one benefiting from the grants. The program’s purpose is to deliver on the Greenhouse Gas Reduction Fund’s objectives, to create cost savings for electricity bills and to unlock new markets for solar energy. The goal of this grant is to expand already existing programs that will deliver residential solar to thousands of households nationwide. In order to be eligible, the applicant is required to send in a Notice of Intent (NOI). Solar for All will begin implementing their project starting in early 2025.
This reduction fund has been made possible by President Biden and Vice President Harris’ Inflation Reduction Act, which stands as the largest climate investment in American history.
This Greenhouse Gas Reduction Program also develops the Biden-Harris Administration’s Justice40 initiative, which sets the goal that 40% of the benefits from federal climate investments go to disadvantaged populations that are impacted by pollution. This includes “over $4 billion for rural communities as well as almost $1.5 billion for tribal communities” from the White House.
These grants will ultimately develop a range of approaches to make clean energy a tool for those most in need as well as generations to come.
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