EPA’s New Greenhouse Gas Reduction Fund: What You Need to Know

By Phil Molé, MPH

If you’ve been reading the news lately, you’ve probably heard about the passage of the?Inflation Reduction Act, intended to address the rising costs of living for Americans. But you may not have heard that the Inflation Reduction Act allocates a significant amount of funds to the EPA to establish a Greenhouse Gas Reduction Fund (the Fund) to finance climate and clean energy projects, including projects intended to benefit historically marginalized and low-income communities. The EPA recently held a virtual public information session to solicit feedback on the administration of the Fund and eligibility for projects and recipients. The EPA’s plans for the Fund, and the level of stakeholder interest in the information session, show the continuing importance of Environmental, Social, and Governance (ESG) as a management approach.?All?this information is important for anyone interested in building or sustaining ESG maturity to understand.

Here’s a breakdown of the Fund, some main themes from the information session, and a few takeaways about the importance and future of ESG.

Background of the Greenhouse Gas Reduction Fund

The Inflation Reduction Act, signed into law by President Biden in August 2022, added new section 134 to the Clean Air Act, 42 U.S.C. § 7434, to establish the Greenhouse Gas Reduction Fund. EPA plans for the program to provide competitive funding to enable zero-emission technologies, as well as funds for financial and technical assistance for projects that reduce or avoid greenhouse gas (GHG) emissions and other forms of air pollution. EPA also intends, in keeping with its publicized commitment to “environmental justice,” that a significant percentage of funded projects are in low-income and disadvantaged communities.

Funds are available to the EPA to award grants until September 30, 2024. The table below breaks down the three revenue streams the EPA is proposing to include in the Fund, who’s eligible and conditions of eligibility, and planned use of money.

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