Today the Environmental Protection Agency (EPA) announced initial guidance on the design of the $27 billion Greenhouse Gas Reduction Fund created by the Inflation Reduction Act. OFN has been anxiously awaiting details about this historic investment to combat climate change and how the program can benefit low-wealth communities most adversely affected by environmental degradation and injustice.
We are encouraged to learn that the EPA will make multiple awards and open competition for funding by summer 2023. The EPA expects to make between 2 and 15 grants through its $20 billion General and Low-Income Assistance Competition and 60 grants through its $7 billion Zero-Emissions Technology Fund Competition.
The Greenhouse Gas Reduction Fund is a once-in-a-generation opportunity to accelerate the clean energy transition. Because CDFIs have a mission to reach low-wealth communities — and have specialized expertise in doing so — they are ideally positioned to finance projects that reduce greenhouse gas emissions and curb the impact of climate change in the most vulnerable communities. We are pleased that the EPA has specifically recognized CDFIs as key players in addressing climate change in communities that need these resources most.
OFN looks forward to working in collaboration with our mission-driven partners to maximize the benefit to the communities our members serve and will keep you updated on our progress. Advocating to ensure CDFIs of all sizes receive a significant portion of Greenhouse Gas Reduction Fund grant capital is one of OFN’s highest priorities.