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Greenhouse Gas Reduction Fund (GGRF)

Background

The Inflation Reduction Act authorized the U.S. EPA to implement the Greenhouse Gas Reduction Fund (GGRF), a $27 billion investment to mobilize financing and private capital to combat the climate crisis and ensure American economic competitiveness. The GGRF will deliver lower energy costs and economic revitalization to communities, particularly those that have historically been left behind. Through the GGRF program, the EPA will allocate the fund through three competitions: Solar for All, National Clean Investment Fund (NCIF), and the Clean Communities Investment Accelerator (CCIA). Through these competitions, the fund aims to scale deployment of clean technologies nationally, build community clean financing capacity locally, and spur adoption of clean distributed solar energy in disadvantaged communities in order to achieve three broad objectives:  

  • Reduce greenhouse gas (GHG) emissions and other air pollutants.
  • Deliver the benefits of greenhouse gas- and air pollution-reducing projects to American communities, particularly low-income and disadvantaged communities. 
  • Mobilize financing and private capital to stimulate additional deployment of greenhouse gas and air pollution reducing projects.  
The Office of Climate and Energy (OCE) submitted the state of Michigan’s application for the Solar for All Competition that will support deploying residential and community solar projects in Michigan’s disadvantaged communities. Additionally, the OCE is working to develop partnerships with entities applying for the NCIF and CCIA to complement the state’s Solar for All strategy. These partnerships will help maximize the funds coming to the state from the GGRF by addressing additional financial barriers to meet the goals of the GGRF.
  • The $7 billion Solar for All Competition will award grants to states, territories, Tribal governments, municipalities, and eligible nonprofit recipients to expand the number of low-income and disadvantaged communities (LIDCs) primed for distributed solar investment with overall objectives to:

    1. reduce emissions of GHGs and other air pollutants;
    2. deliver benefits of GHG and pollution reducing-projects to LIDC; and
    3. mobilize financing and private capital to stimulate additional deployment of GHG and pollution-reducing projects.  

    Eligible uses of the funds include financial assistance, project-deployment technical assistance, and project administration activities to support the deployment of residential rooftop solar, community solar, associated energy storage, and associated enabling upgrades. 100% of the funds must benefit low-income and disadvantaged communities.

    There are no matching funds required and each grantee will receive a minimum of $25 million and a maximum of $400 million.

    The state of Michigan application was submitted before the October 12, 2023 deadline, awards are expected to be announced in Spring 2023, and funds are expected to be dispersed Summer/Fall 2023.

    Register for our Apr. 2 MI Healthy Climate Webinar: Solar for All Program Overview

  • The $14 billion National Clean Investment Fund Competition will grant 2-3 awards to national nonprofit financing entities. These entities will establish clean financing institutions on a national scale, capable of collaborating with the private sector. Their aim is to offer accessible and affordable financing for tens of thousands of clean technology projects across the country, where projects deliver 40% of the benefits to low-income and disadvantaged communities.

    The grantees will extend financial support to individuals, families, nonprofit organizations, for-profit businesses (especially small ones), government units, and others engaged in these projects. These initiatives will yield several benefits including one or more of the following:

    1. reduction of greenhouse gas emissions and other air pollutants;
    2. job creation;
    3. acceleration towards energy security; and
    4. reduction of energy costs.

    To amplify the impact of public funds, these national nonprofit financing entities will engage private capital while funding these projects. This ensures that every dollar of public funding generates multiple times more private-sector investment in projects aimed at reducing emissions and air pollution. NCIF grantees will use funds to provide financial assistance for eligible projects, predevelopment activities, market-building activities, and program administration activities. 

    Qualified projects, activities, or technologies must provide extra advantages to American communities within one or more of the following four categories:

    1. clean energy and energy efficiency;
    2. clean transportation;
    3. affordable and sustainable housing; and
    4. training and workforce development. 

    Priority projects include:

    • distributed energy generation and storage;
    • net-zero emissions buildings; and
    • zero-emissions transportation. 
  • The $6 billion Clean Communities Investment Accelerator Competition will allocate 2-7 grants to hub nonprofits. These nonprofits will offer funding and technical assistance to specific industry networks comprising public, quasi-public, not-for-profit, and nonprofit community lenders. The aim is to ensure that every community in the nation can access the necessary capital for implementing clean technology projects in their residences, small enterprises, educational institutions, and community establishments.

    These community lenders may include community development financial institutions (including Certified Native CDFIs), credit unions, green banks, housing finance agencies, minority depository institutions, and other types of lenders. As a result of this competition, numerous community lenders will initiate new programs or expand existing ones.

    This will provide crucial capital to low-income and disadvantaged communities for implementing projects that:

    1. reduce greenhouse gas emissions and other air pollutants;
    2. create jobs;
    3. improve energy security; and
    4. reduce of energy costs.

    CCIA grantees must use funds to establish new or support existing community lenders that provide financial and technical assistance to eligible projects including capitalization funding, technical assistance subawards, technical assistance services, and program administration. The projects, activities or technologies must be a qualified project, within a priority project category, and in a low-income and disadvantaged community.

    Qualified projects, activities, or technologies must deliver additional benefits to American communities within one or more of the following four categories:

    1. clean energy and energy efficiency;
    2. clean transportation;
    3. affordable and sustainable housing; and
    4. training and workforce development. 

    Priority projects include:

    • distributed energy generation and storage;
    • net-zero emissions buildings; and
    • zero-emissions transportation.