The EPA just announced the Greenhouse Gas Reduction Fund!

To all Arizonans: get ready to start seeing new clean energy projects and employment opportunities – The Greenhouse Gas Reduction Fund (GGRF) will invest $27 billion to reduce energy costs and create clean energy jobs! We recognize that the benefits available through the Inflation Reduction Act (IRA) are limited by the ability of households, small businesses or even houses of worship, to come up with their share of the cost. This plan to develop “Green Banks” will make clean energy MUCH more accessible by lending the funds required for the cost-share – that removes one of the barricades to widespread adoption of the IRA programs.

 As part of the Justice40 initiative, 70% of these funds will go to disadvantaged communities. This is the single largest non-tax investment within the IRA. There are three primary objectives: 1) to mitigate 40 million metric tons of pollution per year, 2) to invest $4 billion in rural communities and $1.5 billion in tribal communities, and 3) to “mobilize $7 of private capital for every $1 of federal funds” over the next seven years (i.e. turning $20 billion into $150 billion by 2031). We can expect this work to begin in July 2024.

The money is divided into three categories (NCIF, CCIA, and Solar for All) and is to be carried out by eight selectees.

National Clean Investment Fund (NCIF) – $14 billion

To establish national financing institutions that prioritize funding accessibility for clean technology projects, and partner with private investors/developers/organizations to deploy projects in hopes of adopting solar energy, reducing air pollution, and creating good-paying jobs. 

1. Climate United Fund ($6.97 billion)
2. Coalition for Green Capital ($5 billion)
3. Power Forward Communities ($2 billion)

Clean Communities Investment Accelerator (CCIA) – $6 billion

To develop hubs that provide funding, expand the capacity of community lenders, and technical assistance in establishing distributed energy, net-zero buildings, and zero-emissions transportation.

4. Opportunity Finance Network ($2.29 billion)
5. Inclusiv ($1.8 billion)
6. Justice Climate Fund ($940 million)
7. Appalachian Community Capital ($500 million)
8. Native CDFI Network ($400 million)

Solar for All (COMING LATE SPRING) – $7 billion

To fund states, territories, tribal governments, municipalities, and nonprofits in making solar energy more accessible and affordable in hopes of closing the “equity gap”. Arizona is a contender for this important grant program, as the Governor’s Office of Resiliency submitted a proposal that aims to help low income families, people who rent and disadvantaged communities enjoy the benefits of cheaper, cleaner solar energy.

Want to take a deeper dive? Listen to this podcast from Volts!