On July 22, as part of the Biden-Harris Administration's Investing in America agenda, the U.S. Environmental Protection Agency announced selected recipients of over $4.3 billion in Climate Pollution Reduction Grants to implement community-driven solutions that are intended to tackle the climate crisis, reduce air pollution, advance environmental justice, and accelerate America's clean energy transition.
The 25 selected applications – https://www.epa.gov/inflation-reduction-act/general-competition-selected-applications-table will fund projects in 30 states, including one Tribe, that target reducing greenhouse gas pollution from 6 sectors: Transportation – $1.18B, electric power – $372M, Commercial and Residential Buildings – $1.06B, Industry – $636M, Agriculture/ natural and working lands – $931M, and Waste and Materials Management – $121M.
A large part of the funded projects are also intended to help 45 states and dozens of metro areas, Tribes and territories develop Climate Action Plans and, per the EPA, is the single largest effort to spur the development of concrete local climate action goals across the nation.
The grants will fund projects supporting the deployment of technologies and programs to reduce greenhouse gases across the country. The grants are intended to help businesses capitalize on new opportunities, spur economic growth and job creation in new and growing industries, and support development of training programs to prepare workers.
According to the EPA website, when estimates provided by all selected applicants are combined, the proposed projects would reduce greenhouse gas pollution by as much as 971 million metric tons of carbon dioxide equivalent by 2050, roughly the emissions from 5 million average homes' energy use each year for over 25 years.
EPA expects to announce up to an additional $300 million in selections under the Climate Pollution Reduction Grants program for Tribes, Tribal consortia, and territories later this summer.
By way of example, Pennsylvania's Department of Environmental Protection has been selected to receive a more than $396 million grant for their proposed RISE PA project which focuses on industrial GHG emissions in the industrial sector through a competitive grants program and incentives for small-, medium- and large-scale decarbonization projects across the state.
- The Montana Forest, Community and Working Landscapes Climate Resiliency Projectwill fund measures that improve forest management and expand urban and community forests. The selected application will also assist efforts to mitigate wildfires and coal seam fires and support local initiatives to improve soil health and reduce pollution from agriculture.
- The South Coast Air Quality Management District has been selected to receive nearly $500 million for transportation and freight decarbonization through incentives for electric charging equipment and zero-emission freight vehicles.
- The Nebraska Department of Environment and Energywill fund measures to increase the adoption of climate-smart and precision agriculture and reduce agricultural waste from livestock. The selected application will also fund projects to improve energy efficiency in commercial and industrial facilities and low-income households as well as deploy solar and electrify irrigation wells.
- The Clean Corridor Coalition's proposal for ZE-MHDV Infrastructure along the I-95 Corridor project will deploy electric vehicle charging infrastructure for commercial zero-emission medium- and heavy-duty vehicles on the Interstate-95 freight corridor. This is a joint venture amongst the New Jersey Department of Environmental Protection, Connecticut Department of Energy and Environmental Protection, Delaware Department of Transportation, and Maryland Departments of the Environment and Transportation. The selected application will provide technical assistance for workforce development and corridor planning across New Jersey, Connecticut, Delaware, and Maryland.
- The Accelerating Siting, Zoning, and Permitting of 60% Renewable Energy in Michigangrant will provide incentives and technical assistance to local and Tribal governments to accelerate the siting, zoning, and permitting of renewable energy. The selected application will help spur the adoption of renewable energy at the scale and pace needed to reach Michigan's goal of 60 percent renewable energy by 2030.
- The Atlantic Conservation Coalition is a regional approach focused on natural climate solutions to reduce greenhouse gas emissions. The selected application will fund efforts across North Carolina, South Carolina, Maryland, and Virginia to leverage the carbon sequestration power of natural and working lands, including coastal wetlands, peatlands, forests, and urban forestry. The Atlantic Conservation Coalition is a partnership amongst the North Carolina Department of Natural and Cultural Resources, South Carolina Office of Resilience, Maryland Department of the Environment, and Virginia Department of Environmental Quality.
- The Accelerating Clean Energy Savings in Alaska's Coastal Communities grant will provide advisory services and incentives to replace residential oil burning systems with energy-efficient heat pumps in 50 Alaskan communities.
The measures contained in the selected applications, developed with input from local communities, are expected to achieve substantial public health benefits such as reducing exposure to extreme heat, improving air quality, reducing energy burden for lower income Americans, improving climate resilience, and providing workforce and economic development opportunities, particularly in low-income and disadvantaged communities.
The EPA reported that they reviewed nearly 300 applications that were submitted by entities from across the country and requested a total of nearly $33 billion in funding.
Many of the proposed projects contained in the selected applications, as well as the $250 million in planning grant funding that EPA is providing under the CPRG program for development of Climate Action Plans by state, local, and Tribal governments across the country, will add to the Biden-Harris Administration's federal actions and national climate strategies across various sectors which include: the U.S. National Blueprint for Transportation Decarbonization, the Administration's efforts to achieve 100% clean electricity by 2035 and make zero emissions construction common practice by 2030, the Industrial Decarbonization Roadmap, the U.S. Buildings Decarbonization Blueprint, the climate-smart agriculture efforts and Nature Based Solutions Roadmap, the U.S. Methane Emissions Reduction Action Plan, the National Climate Resilience Program.
Green Spouts: While some might espouse the theory that these grants are politically motivated in an Election Year, the reality on the ground is that real dollars are being provided to multiple states and communities to help support their efforts in the climate change mitigation and resiliency arenas. The programs they in turn set up and fund will last for years into the future and should provide a good base to help various communities and stakeholders start to plan and implement strategies to help alleviate some of the impacts that climate change has already created and will create in the future.
Duane Morris has an active ESG and Sustainability Team to help organizations and individuals plan, respond to, and execute on your Sustainability and ESG planning and initiatives. For more information, please contact Brad A. Molotsky, David Amerikaner, Sheila Rafferty-Wiggins, Alice Shanahan, Jeff Hamera, Nanette Heide, Jolie-Anne Ansley, Robert Montejo or the attorney in the firm with whom you are regularly in contact.
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