66.960: Greenhouse Gas Reduction Fund: Clean Communities Investment Accelerator

66.960

Active

Environmental Protection Agency (EPA)

Oct. 30, 2023

Oct. 30, 2023

The Inflation Reduction Act amends the Clean Air Act to include Section 134 (42 USC § 7434), which authorizes the EPA to make competitive grants under the Clean Communities Investment Accelerator. The Clean Communities Investment Accelerator is currently funded by $6 billion from Section 134(a)(3) (out of $8 billion provided in Section 134(a)(3)). The Clean Communities Investment Accelerator implements the statute’s use of funds for indirect investments under Section 134(b)(2). Section 134(b)(2) directs recipients of funds for indirect investments to provide funding and technical assistance to establish new or support existing public, quasi-public, not-for-profit, or nonprofit entities that provide financial assistance to qualified projects at the State, local, territorial, or Tribal level or in the District of Columbia, including community- and low-income-focused lenders and capital providers. Section 134(c)(3) provides that a qualified project is any project, activity or technology that (A) reduces or avoids greenhouse gas emissions or other forms of air pollution in partnership with, and by leveraging investment from, the private sector; or (B) assists communities in the efforts of those communities to reduce or avoid greenhouse gas emissions and other forms of air pollution.

“Eligible recipients,” as that term is defined in Clean Air Act Section 134(c)(1), are eligible for grants from this competition. Section 134(c)(1) defines “eligible recipient” as a nonprofit organization that (A) is designed to provide capital, leverage private capital and provide other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services; (B) does not take deposits other than deposits from repayments and other revenue received from financial assistance using the grant funds; (C) is funded by public or charitable contributions; and (D) invests in or finances projects alone or in conjunction with other investors. Further information will be provided in the NOFO about the specific criteria EPA will use to determine eligibility for funding under this program.

This program will have widespread benefits to residents of the United States in communities across the country through the deployment of projects that reduce or avoid greenhouse gas emissions and other forms of air pollution.

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