The Greenhouse Gas Reduction Fund
“The Greenhouse Gas Reduction Fund is an unprecedented opportunity to accelerate the adoption of greenhouse gas reducing technologies and position the United States to compete and win the 21st century economy."
- EPA Administrator Michael S. Regan
Congratulations!!!
As of August 16th, 2024 EPA has obligated the full $27 billion of the Greenhouse Gas Reduction Fund award to the selected recipients. And with that, it’s time to get to work!
The Planet First Action team, and the team at Gordon & Frost extends massive congratulations to each of the awardees and looks forward to supporting the awardees in deploying this capital to decarbonize our buildings and transportation, bring new clean energy onto the grid, uplift the local communities we are supporting, and achieve our collective sustainability goals.
Learn more about the Greenhouse Gas Reduction Fund and hear from visionary leaders behind the deployment of the program below!
On August 16, 2022, President Biden signed the Inflation Reduction Act into law, and in doing so launched one of the largest investments by Congress in the nation’s history, with a focus on supporting the American economy, building energy independence, and on an bolstering climate efforts.
A flagship component of the Inflation Reduction Act, is the Greenhouse Gas Reduction Fund: a first-of-its-kind nation-wide program deploying $27 billion dollars in public investment to mobilize financing and to unlock and activate private capital in order to deploy clean energy and decarbonization projects across the country - in other words, projects that reduce greenhouse gasses, along with other air pollutants.
Learn more about the fund, its three programs and the various awardees, along with helpful resources and coverage in the press below.
History In The Making
In its enactment, the Greenhouse Gas Reduction Fund has already made history, but it’s true legacy will be it’s impact on communities across the country, and in fact is designed to continue making history over, and over again.
But, What Is It For?
According to EPA administrator Michael S. Regan, the “[GGRF puts] an unprecedented $20 billion to work in communities that for too long have been shut out of resources to lower costs and benefit from clean technology solutions. The selectees announced today will deliver transformational investments for American communities, businesses, and families and unleash tens of thousands of clean technology projects like putting solar on small businesses, electrifying affordable housing, providing EV loans for young families, and countless others. That translates to good-paying jobs, energy bill savings, and cleaner air, all while delivering on President Biden’s historic agenda to combat climate change.”
But getting to the specifics, according to the EPA, the Greenhouse Gas Reduction Fund was designed to achieve the following three objectives:
Reduce greenhouse gas emissions and other air pollutants.
Deliver the benefits of greenhouse gas- and air pollution-reducing projects to American communities, particularly low-income and disadvantaged communities.
Mobilize financing and private capital to stimulate additional deployment of greenhouse gas and air pollution reducing projects.
Program Highlights
The GGRF is the single largest non-tax investment of the Inflation Reduction Act.
Collectively, the selected applicants have committed to reducing or avoiding up to 40 million metric tons of carbon pollution annually over the next seven years.
Selectees plan to mobilize almost $7 of private capital for every $1 of federal funds—approximately $150 billion total
At least 70% of funds will be invested in low-income and disadvantaged communities
Spur the creation of hundreds of thousands of good-paying jobs.
"So many families face the same challenges: something breaks, you can’t afford to replace it, and the short-term solution is really no solution at all. I’m grateful for the help I got to install a brand-new heat pump water heater that provides me all the hot water I need while saving energy and money. And I’m grateful that there’s now going to be more options for families that will make these new appliances affordable and bring the benefits to them too."
— Homeowner Mildred Carter of DeSoto Georgia
The Greenhouse Gas Reduction Fund is not one single program, but rather, a combination of three programs.
Under the $14 billion National Clean Investment Fund, the three selected applicants will establish national clean financing institutions that deliver accessible, affordable financing for clean technology projects nationwide, partnering with private-sector investors, developers, community organizations, and others to deploy projects, mobilize private capital at scale, and enable millions of Americans to benefit from the program through energy bill savings, cleaner air, job creation, and more.
Selectees Include:
Climate United Fund ($6.97 billion award)
Coalition for Green Capital ($5 billion award)
Power Forward Communities ($2 billion award)
Under the $6 billion Clean Communities Investment Accelerator, the five selected applicants will establish hubs that provide funding and technical assistance to community lenders working in low-income and disadvantaged communities, providing an immediate pathway to deploy projects in those communities while also building capacity of hundreds of community lenders to finance projects for years.
100% of capital under the CCIA is dedicated to low-income and disadvantaged communities.
Selectees Include:
Opportunity Finance Network ($2.29 billion award)
Inclusiv ($1.87 billion award)
Justice Climate Fund ($940 million award)
Appalachian Community Capital ($500 million award)
Native CDFI Network ($400 million award)
Under the $7 billion Solar for All program, to expand the number of low-income and disadvantaged communities primed for distributed solar investment—enabling millions of low-income households to access affordable, resilient, and clean solar energy. Grantees will use funds to expand existing low-income solar programs or design and deploy new Solar for All programs nationwide.
Selectees Include
60 applicants were selected by EPA - including states, territories, Tribal governments, municipalities, and eligible nonprofit recipients.
Insights On The Greenhouse Gas Reduction Fund From Planet First Action
The Greenhouse Gas Reduction Fund (GGRF) is a primary topic for Planet First Action due to the scale of it’s impact, and the need for broad understanding and engagement from across stakeholders and communities to maximize its success.
Due to it’s importance Planet First Action are highlighting leaders that have been directly focused in on the GGRF from various perspectives so that communities and stakeholders from all backgrounds can better understand the program, and importantly, what can be done today to begin preparing for it. Those episodes are included below. If you are interested in learning more about the Planet First Action Podcast in partnership with Newlab, you can learn more and subscribe here.
Insights From Tony Curnes, Managing Partner of Purpose Venture Group
Tony Curnes Interview, Part 1
In his two part interview, Tony Curnes, the founding partner of Purpose Venture Group shared an incredibly valuable perspective on the changing landscape for financing climate solutions, with a unique insight into the design and impact of the Greenhouse Gas Reduction Fund because of his role as one of the principal architects behind the incubation of Rewiring America, and the Power Forward Communities Coalition which was successfully awarded $2 billion dollars of the $14 billion available in the NCIF program. Learn more on the Power Forward Communities Coalition and the NCIF program here.
Listen to two-part interview below to learn from Tony, and to hear directly from him regarding the plans and strategy for how the Power Forward Communities Coalition is going to focus it’s $2 billion grant, and what communities should be doing today to prepare for it.
Tony Curnes Interview, Part 2
Insights From Jackie Logan, Co-Founder & Chief Investment Officer of Raise Green
In her two part interview, Jackie Logan, the co-founder and chief investment officer helped audiences to fully appreciate just how game-changing the Greenhouse Gas Reduction Fund is, especially when paired with other elements of the Inflation Reduction Act - like Direct Pay - drawing on her nearly three decades of experience leading in the wold of Private Capital, with tenures at Goldman Sachs and JP Morgan.
Jackie Logan has an especially valuable perspective and insight into the GGRF, because Raise Green is situated directly in between communities and the new climate solutions (like solar and battery storage) that are being deployed, as a platform offering regulated crowdfunding (RegCF). RegCF is a newly available type of financing, created by the Jobs Act in 2012 and coming online just a few years ago in 2016. Raise Green’s work harnessing the unique capability of regulated crowdfunding is so important for the GGRF, because it is a novel approach that democratizes access to investment in climate, and can help communities to have true equity and ownership in the new solutions being deployed in their neighborhoods.
Listen to the two-part interview below for incredible insights from Jackie Logan on Direct Pay, the GGRF, and what it all means for communities going forward.
Jackie Logan Interview, Part 1
Jackie Logan Interview, Part 2
Insights From Clare Doyle Dowd, Head of Policy at BlocPower
In her two part interview, Clare Doyle Dowd, the Head Of Policy for BlocPower shares from her wealth of knowledge and insights spanning an incredible career, including time at one of the largest CDFIs in the country as well as at the administration of President Bill Clinton. Clare spearheads policy at BlocPower under the leadership of Donnel Baird, working to realize the company’s vision: “That every home and building in America can be an engine of opportunity, and that all the climate, health, and economic benefits flowing from the green economy should be accessible for everyone.” And the team at BlocPower lead with empathy and determination, and drive real results in communities, earning them tremendous distinction: including being named by TIME magazine to the 100 most influential companies, by Fast Company as the 4th most innovative company in the world, and by CNBC as one of the top 50 most disruptive companies in the world for three consecutive years.
Listen to the two-part interview below for incredible insights from Clare Doyle Dowd on the Greenhouse Gas Reduction Fund, how it comes to life for all stakeholders, and specifically, what does it take to effectively engage and support communities, working with and alongside them.
Clare Doyle Dowd Interview, Part 1
Clare Doyle Dowd Interview, Part 2
The Greenhouse Gas Reduction Fund In The News
“GGRF Provides $27 Billion for Clean Energy Projects. Here’s How Cities Can Access It”
6/17/2024 | National League Of Cities
In short, the National League of Cities breaks down it’s advice for cities, towns, and villages into 4 buckets when it comes to preparing for the Greenhouse Gas Reduction Fund:
Review Climate Plans and Priorities,
Talk to Local Community Leaders,
Assess Workforce Capacity and Development Programs, and
Check-in With and Convene Other Important Stakeholders.
“$20 billion from EPA's Greenhouse Gas Reduction Fund builds local climate capacity.”
4/4/2024 | The Climate Group
Climate Group Executive Director for North America Angela Barranco shared:
“Programs like the Greenhouse Gas Reduction Fund (GGRF) play a key part in the implementation of the Inflation Reduction Act. As we’ve seen this legislation evolve over the past two years, thousands of communities around the country are now willing and able to fund and build the infrastructure needed to reduce emissions, improve energy efficiency, and put us on a path to a green economy…”
“Investing In Greenhouse Gas Reduction Lifts Up Main Streets”
5/21/2024 | Forbes
“Stemming the effects of climate change and helping underserved communities transition to cleaner energy will not happen overnight and requires continued, purposeful effort. This program is a strong step in making Main Streets stronger, by preparing them for the future and hopefully giving them the strength to weather unforeseen natural disasters.”
Data Sources:
https://www.epa.gov/greenhouse-gas-reduction-fund
https://epa.gov/greenhouse-gas-reduction-fund/national-clean-investment-fund
https://www.epa.gov/greenhouse-gas-reduction-fund/clean-communities-investment-accelerator
https://www.epa.gov/greenhouse-gas-reduction-fund/solar-all
https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/04/biden-harris-administration-announces-historic-20-billion-in-awards-to-expand-access-to-clean-energy-and-climate-solutions-and-lower-energy-costs-for-communities-across-the-nation/