The US Environmental Protection Agency on April 4 announced $20 billion in grants to eight nonprofit groups to fund climate and clean energy projects. Rather than funding projects directly, officials say the grants create a new funding network for tens of thousands of future projects that would reduce carbon emissions, with a focus on low-income and disadvantaged communities.
The money comes from two programs in the $27 billion Greenhouse Gas Reduction Fund, which was created by the Inflation Reduction Act of 2022. Three grants worth a combined $14 billion were awarded dollars through the National Clean Investment Fund (NCIF) for non-profit organizations to establish funding institutions to finance clean technology projects nationally by partnering with private investors, developers and community organizations. Five other grants totaling $6 billion were awarded through the Clean Communities Investment Accelerator (CCIA) to create centers that would provide financing and technical assistance for projects such as distributed energy, net zero buildings and emissions-free transport projects.
As part of the grant process, the selected groups committed to funding projects that will reduce or avoid greenhouse gas emissions and drive the funds specifically to low-income rural and tribal communities. They have also pledged to leverage every $1 in grant funding with nearly $7 in private funding.
“The grantees announced today will help ensure that families, small businesses and community leaders have access to the capital they need to make climate and clean energy projects a reality in their neighborhoods,” Vice President Kamala Harris said in a statement .
All of the selected awardees have already been involved in supporting communities across the country. EPA officials highlighted some of the small projects led by the groups, including improving energy efficiency in homes, rehabilitating a former National Guard arsenal into space for small businesses and nonprofits, and install solar panels and a backup battery in a senior housing community.
The largest award is a $6.97 billion NCIF grant to the Climate United Fund, a nonprofit partnership formed by the groups Calvert Impact, Community Preservation Corp. and Self-Help. Climate United has already met with partners in North Carolina, Wisconsin, New York and South Dakota, and the group says it is targeting projects that will improve air quality, create jobs, lower energy bills and will increase energy security. They have pledged to deploy at least 60% of the grant money to low-income communities, 20% to rural communities and 10% to Native American communities.
“As our country moves toward a greener and more sustainable future, we must ensure that all communities can benefit from a clean energy economy,” said Rafael Cestero, CEO of the Community Preservation Corp. in a statement.
NCIF’s other awardees include the Coalition for Green Capital, which will receive $5 billion, and Power Forward Communities, which will receive $2 billion.
CCIA’s largest award is $2.29 billion to the Opportunity Finance Network. The nonprofit intermediary of the Community Development Financial Institution provides capital to a network of more than 400 community lenders. Amber Bell, the network’s chief strategy officer, said in a statement that its CCIA program was designed in collaboration with its members, who have been working for decades and are deeply committed to their respective communities.
“OFN will leverage these resources to equip our members to invest and reinvest in projects and technologies that reduce greenhouse gas emissions and support healthy communities that are resilient to the effects of climate change,” Bell said.
CCIA grant winners also include Inclusiv, with an award of $1.87 billion; Climate Justice Fund with 940 million dollars; Appalachian Community Capital with $500 million and Native CDFI Network with $400 million.
Grants have not yet been granted for a third program of the Greenhouse Gas Reduction Fund, called Solar for All. EPA officials said last year they had received notices of intent from states, territories, municipalities and nonprofits seeking more than $38 billion in funding from the $7 billion program.
