EPA offers $4.6B in grants to cut climate pollution

The U.S. EPA on Sept. 20 announced it is making $4.6 billion in competitive grants available to support state, local and Tribal programs and policies that cut climate pollution. Certain renewable energy and biogas projects are among those eligible for funding.

The competitive grant programs are part of the second tranche of funding from EPA’s $5 billion Climate Pollution Reduction Grants program, which was created by the Inflation Reduction Act. The agency in March 2023 made $250 million available to states, local governments, Tribes and territories to support the development of plans to reduce greenhouse gas (GHG) emissions. The Priority Climate Action Plan is the first deliverable due under those CPRG planning grants. The $4.6 billion implementation grant competitions launched Sept. 20 support the implementation of GHG reduction programs, policies, projects and measures identified in a PCAP developed under a CPRG planning grant.

The implementation grants are designed to enable states, municipalities, tribes and territories implement ambitious measures that will achieve significant cumulative GHG reductions by 2030 and beyond; pursue measures that will achieve substantial community benefits, including a reduction in criteria air pollutants and hazardous air pollutants, particularly in low-income and disadvantaged communities; complement other funding sources to maximize these GHG reductions and community benefits; and pursue innovative policies and programs that are replicable and can be scaled up across multiple jurisdictions.

Funding opportunity documents provide examples of GHG reduction measures that may be eligible for funding, including the development of renewable portfolio standards and/or clean electricity standards; installation of renewable energy and energy storage systems on municipal facilities; policies and measures to streamline permitting for renewable energy projects; implementation of a clean heat standard; standards and incentives to reduce methane emissions from landfills and wastewater treatment facilities, including through collection for use or destruction; programs to expand composting and bio-digestion infrastructure to reduce GHG emissions and increase beneficial use of organic waste; installation of renewable energy and energy efficiency measures at wastewater treatment facilities; and incentives to promote anaerobic digesters within the agricultural sector to capture methane and generate renewable energy or produce renewable fuel.

The EPA anticipates awarding approximately 30 to 115 grants ranging between $2 million and $500 million under the general competition. The agency also anticipates awarding approximately 25 to 100 grants ranging between $1 million and $25 million under the Tribes and territories competition. Applications are due April 1, 2024. The agency expects that implementation grants will be awarded in Fall 2024 for the general competition and in Winter 2024-2025 for the Tribes and territories competition.

Additional information is available on the EPA website.