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EPA releases Greenhouse Gas Reduction Fund framework
The Environmental Protection Agency (EPA) Wednesday released additional details and an implementation framework for the Greenhouse Gas Reduction Fund (GGRF). NAFCU has worked to secure credit unions’ ability to receive money from the fund to support projects that reduce greenhouse gas emissions and air pollution in low-income and disadvantaged communities.
The GGRF was established under the Inflation Reduction Act of 2022 to provide grants for zero-emission technologies, and financial and technical assistance for projects to reduce greenhouse gas emissions and other air pollution.
The EPA in February announced initial details of how it will disburse funds, and the framework released Wednesday outlines a clear vision for the three grant competitions EPA will administer through the GGRF program, including preliminary descriptions of key parameters, application requirements, and reporting obligations. The agency also provided a fact sheet on the grant competitions and how funds will support communities.
The EPA intends to fund two to seven hub nonprofits through the Clean Communities Investment Accelerator competition, which would then establish a specific network of non-profit community lenders – including credit unions, Community Development Financial Institutions (CDFIs), minority depository institutions (MDIs) and others – to provide capitalization to ensure households, small businesses, schools, and community institutions in low-income and disadvantaged communities have access to financing for cost-saving and pollution-reducing clean technology projects.
Comments on the framework can be submitted through May 12. Over the next two weeks, the EPA will hold listening sessions – details will be made available online – and the agency plans to begin the GGRF application process in June. NAFCU will remain engaged to ensure credit unions have access to these new programs.