The U.S. Environmental Protection Agency (EPA) announced initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, which was created by President Biden’s Inflation Reduction Act. EPA published two Federal Assistance Listings outlining key parameters of the grant competitions that will ultimately award nearly $27 billion to leverage public and private capital for clean energy and clean air investments nationwide with a focus on disinvestment communities. Climate justice advocates want to ensure that GGRF program funds reach communities combating climate change and address systemic injustices that have long been part of the energy and financial systems.
EPA will hold two competitions to distribute grant funding under the Greenhouse Gas Reduction Fund: a $20 billion General and Low-Income Assistance Competition and a $7 billion Zero-Emissions Technology Fund Competition. EPA will implement these programs in alignment with President Biden’s Justice40 Initiative, which directs that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities, including those facing disproportionately high and adverse health and environmental impacts. EPA expects to open competitions for funding under the Greenhouse Gas Reduction Fund by the summer of 2023.