Press Release
☷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
White House ( By Press Release office)
Apr 05,2024
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Today , Vice President Kamala Harris and EPA Administrator Michael Regan will be in Charlotte , North Carolina to announce the selection of recipients for $20 billion in awards from the Greenhouse Gas Reduction Fund . This fund , part of President Biden ' s Inflation Reduction Act , aims to support climate and clean energy projects across the country , with a focus on helping low - income and disadvantaged communities . The goal is to reduce harmful climate pollution , improve air quality , lower energy costs , and create jobs . The announcement will also include Governor Roy Cooper , Mayor Vi Lyles , and Congresswoman Alma Adams . The selected projects will include clean power generation , home and business retrofits , and zero - emission transportation , all aimed at reducing carbon pollution and advancing the administration ' s climate goals . The program will leverage private capital to ensure long - term impact , particularly in underserved communities . This initiative aligns with the administration ' s Justice40 Initiative , which aims to ensure that 40% of the benefits from federal climate and clean energy investments go to disadvantaged communities . Around 70% of the funds announced today , totaling over $14 billion , will go towards investing in communities that have been historically marginalized and underserved . This includes areas with environmental justice concerns , communities of color , rural communities , Tribal communities , and more . These investments are aimed at building a clean energy economy and supporting communities that have been left behind in the past . However , there are efforts by Republicans in Congress to roll back these investments , with the recent passing of H . R . 1023 in the House of Representatives . President Biden has indicated his intention to veto the bill if it reaches his desk . The $20 billion in awards will be distributed through two programs under the EPA ' s Greenhouse Gas Reduction Fund - the $14 billion National Clean Investment Fund ( NCIF ) and the $6 billion Clean Communities Investment Accelerator ( CCIA ) . These programs aim to create a national network of community - led financial institutions that will finance climate and clean energy projects , particularly in disadvantaged communities . The NCIF recipients will partner with various organizations to provide affordable financing for clean technology projects nationwide , with a focus on low - income and disadvantaged communities . The Climate United Fund , one of the NCIF selectees , will work with Community Development Financial Institutions to invest in a variety of sectors , with a significant portion going towards underserved communities . The Opportunity Finance Network , a nonprofit CDFI Intermediary , will receive a $2 . 29 billion award to provide capital and capacity building for a national network of community lenders . Inclusiv , another nonprofit CDFI Intermediary , will receive a $1 . 87 billion award to support a network of mission - driven credit unions . The Clean Communities Investment Accelerator ( CCIA ) will provide funding and technical assistance to community lenders financing clean technology projects in low - income and disadvantaged communities . This initiative aims to deploy climate and clean energy projects in the near term while building the capacity of community lenders to finance projects at scale . All CCIA funds will flow to low - income and disadvantaged communities . The Coalition for Green Capital , a nonprofit with almost 15 years of experience , has helped establish and work with numerous state , local , and nonprofit green banks that have already generated $20 billion in qualified projects . They have a pipeline of $30 billion in demand for green bank capital , which could be coupled with even more private investment . Their program will focus on public - private investing , with at least 50% of investments targeted towards low - income and disadvantaged communities . Power Forward Communities , a coalition formed by five trusted housing , climate , and community investment groups , is dedicated to decarbonizing American housing . They aim to save homeowners and renters money , reinvest in communities , and address the climate crisis . The coalition members will utilize their experience to provide customized and affordable solutions for housing owners and developers , with a focus on low - income and disadvantaged communities . For example , the Treasury Department has finalized rules for direct pay , allowing tax - exempt entities like states , cities , Tribes , and nonprofits to access clean energy tax credits and participate in building and owning clean energy projects . The City of Madison , Wisconsin plans to access $13 million via direct pay to support their goal of 100% carbon - free operations by 2030 . The City of San Antonio , Texas is also utilizing direct pay to develop the largest municipal onsite solar project in the state . This $30 million project aims to install solar photovoltaic systems on the roofs , parking lots , and parks of 42 city facilities . The goal is to reduce energy costs and consumption and work towards achieving net - zero energy for all municipal buildings by 2040 . Under the Inflation Reduction Act , businesses can transfer clean energy tax credits to a third - party in exchange for cash , allowing small businesses and start - ups to benefit from the credits even if they don ' t have sufficient tax liability . The IRS has already registered over 45 , 000 new projects taking advantage of this provision , which is reducing financing costs for clean energy projects and supporting the growth of the clean energy economy . The Inflation Reduction Act also includes the Low - Income Communities Bonus Credit program , which promotes clean energy investments in low - income communities , Tribal lands , affordable housing developments , and benefits low - income households . The program offers a bonus credit of 10 to 20 percentage points for small clean energy projects , with a total capacity of up to 1 . 8 GW per year . In the first year , the program received over 46 , 000 applications , demonstrating strong demand to build projects in low - income communities . The Department of Energy ' s Loan Programs Office has provided a conditional commitment through the Tribal Energy Financing Program to support tribal entities in developing energy infrastructure . This expansion was made possible by the Inflation Reduction Act . The first commitment was for up to $72 . 8 million to finance a solar - plus long - duration energy storage microgrid on the Tribal lands of the Viejas Band of the Kumeyaay Indians in California . Additionally , the Loan Programs Office has made a conditional commitment through the Energy Infrastructure Reinvestment Program to finance projects that revamp or replace energy infrastructure to reduce pollution . This program was authorized and appropriated by the Inflation Reduction Act and aims to direct investment to historical energy communities . Last week , the office offered a conditional commitment of up to $1 . 52 billion to finance the restoration and resumption of service of an 800 - MW electric nuclear generating station in Michigan , which closed in May 2022 . The funds will be used to upgrade the facility and ensure clean power production for many years to come . Last week , HUD Acting Secretary Todman headed to Chicago to share the news that over half of the $1 billion from the Inflation Reduction Act has been awarded to improve energy efficiency and climate resilience in homes for low - income Americans . The Green and Resilient Retrofit Program offers grants and loans for renovations in HUD - assisted multifamily housing . Since the Biden - Harris Administration began , the USDA has invested over $1 . 8 billion in clean energy for rural small businesses and agricultural producers through the Rural Energy for America Program . The Inflation Reduction Act will expand this program with over $2 billion in funding . EPA recently announced $600 million in grants for environmental justice projects through the Environmental Justice Thriving Communities Grantmaking Program . This program aims to make federal funding more accessible to community - based organizations . Additionally , EPA has made approximately $2 billion available for community - driven projects that promote clean energy and climate resilience through the Community Change Grants Program . This is the largest investment in environmental justice for communities to date , working towards a healthier and more prosperous future for all .
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