Greenhouse Gas Reduction Fund Program Selectees To Begin Period of Performance
The five grantees awarded $6 Billion under the Environmental Protection Agency’s (EPA) Clean Communities Investment Accelerator (CCIA) Program, and the three grantees selected to “establishing national clean financing institutions” to deploy $14 billion of initial capital under the National Clean Investment Fund (NCIF) were expected to finalize work plans and complete required paperwork and agreements with the EPA and begin their period of performance in July 2024. Funding opportunities and new financial products to support energy efficiency and clean production are expected to begin in the second half of 2024.
In a demonstration of transparency, EPA has made the grant narratives (with some redactions of proprietary or personally identifiable information) publicly available on its web sites linked above. It has also posted information on the selection process. All programs are subject to the Justice40 requirements and several of the selected groups have committed to directing more than 40 percent of the resources to low-income and disadvantaged communities.
Of note for affordable and assisted housing is Power Forward Communities (PFC), which was awarded $2 billion to advance “decarbonizing and transforming American housing to save homeowners and renters money, reinvest in communities, and tackle the climate crisis.” PFC, which has committed 75 percent of its resources to low-income and disadvantaged communities, is just ramping up (they have issued RFP’s for legal, recruitment/hiring, and media/PR services). One member is Enterprise Community Partners, which has established the Affordable Housing Decarbonization Hub | Enterprise Community Partners to provide resources and links for decarbonization in affordable housing.
Additional resources under the Enterprise Green Communities program and several Climate Risk Reduction initiatives are also available. Engaging with these resources could give agencies a head start in preparing for future funding and programming. Another Power Forward Communities partner, Rewiring America, also has a slew of resources related to all things electrification. The other partners are Habitat for Humanity, Local Initiatives Support Corporation (LISC), and United Way Worldwide.
A variety of other resources are available to help link potential partners with emerging opportunities and to support effective program development. These include:
- The R2E2 Playbook – Energy Efficiency, part of the Residential Retrofits for Energy Equity (R2E2) program. R2E2 provides technical assistance to state and local governments, community-based organizations, and other entities to jumpstart energy retrofit programs for both single family and multifamily low- to moderate-income housing. R2E2 is a partnership of the American Council for Energy-Efficient Economy (ACEEE), Elevate, Emerald Cities Collaborative, and HR&A Advisors, with People’s Climate Innovation Center advising on centering equity in the project and its outcomes and on facilitating community-driven planning processes.
- The Local Infrastructure Hub is a national program designed to connect cities and towns with resources and expert advice to access federal infrastructure funding. The hub includes a searchable database of grant opportunities under the Bipartisan Infrastructure Law, Events including a range of training webinars, and Grant Application Bootcamps to support small and mid-size cities effectively complete for federal funding resources. Of potential interest to members is the August 6 workshop, “Greenhouse Gas Reduction Fund Financing: What Cities Need to Know.” The local infrastructure Hub is a project of the United States Conference of Mayors, the National League of Cities, and other partners.
Home Energy Rebates (Department of Energy)
The Department of Energy (DOE) $8.8 billion Home Energy Rebates program – authorized in the Inflation Reduction Act – awards grants to states to establish rebate programs for upgrading appliances, installing heat pumps, improving insulation, and making other improvements to reduce carbon emissions and energy bills for consumers. To benefit disadvantaged communities, states and territories are required to allocate at least half of the rebates to low-income households.
There are two categories of Home Energy Rebate Programs:
- Home Efficiency Rebates will provide $4.3 billion to discount the price of energy-saving retrofits in single-family and multi-family buildings. Energy savings from these rebates likely can be combined with some Public Housing Energy Branch incentives, such as the small and rural frozen-rolling base program (SR-FRB).
- Home Electrification and Appliance Rebates will provide $4.5 billion in rebates for high-efficiency electricity upgrades.
States are in various stages of program development, plan submission, and federal approval. As of this writing, only New York currently has rebates available. Five states (Arizona, California, Maine, New Mexico, Washington and Wisconsin) have had their applications approved. Eleven states (Colorado, Georgia, Indiana, Massachusetts, Michigan, Minnesota, New Hampshire, North Carolina, Oregon, Rhode Island, Vermont and the District of Columbia) have submitted their applications. The remaining states are still preparing their detailed applications to DOE. More information on this program, including a map with current status and links to the appropriate state entity, can be found at Home Energy Rebates | Department of Energy.
Low-Income Communities Bonus Credit Program (Department of Energy/Department of the Treasury)
This program, updated and expanded as part of the Inflation Reduction Act, provides for increased tax credit eligibility under the Clean Energy Investment Section 48(e) tax credit to lower the cost of installing and operating renewable energy projects (wind, solar, hydro-power or geo-thermal heat pumps) or energy storage technology.
HUD has produced a 20-minute video introduction to the program which is available here. This is one of three videos (so far) in HUD’s series on Multi-family Affordable Housing Clean Energy Tax Credits.
Bonus credit amounts up to 100 percent of the cost are available for projects that meet certain criteria. Some of these include:
- 10%–20% increase for qualified solar or wind facilities in low-income communities, as part of affordable housing developments, or benefiting low-income households.
- 10% increase for projects located in an energy community.
- 10% increase from the base if the project meets domestic content requirements.
- A credit of 5x the base if the project meets prevailing wage and apprenticeship requirements.
Projects that include clean energy generation elements eligible for the credit could add plans for this credit to their new development or rehabilitation project capital stack. More information on the program can be found here: Low-Income Communities Bonus Credit Program | Department of Energy.
Resources and Assistance Targeting Small and Rural Areas
A variety of entities are also developing programs specifically targeting rural areas to support accessing federal resources.
- The Department of Agriculture’s Rural Development office and the Department of Commerce’s Economic Development Administration have developed a Joint Planning Resource Guide with links to programs and funding focusing on Planning and Technical Assistance, Infrastructure and Broadband Expansion, Entrepreneurship and Business Assistance, and Workforce Development and Livability.
- The Department of Energy’s Office of Clean Energy Demonstrations has compiled a broad range of federal resources into their publication, Federal Energy Funding for Rural and Remote Areas: A Guide for Communities.
- Agencies in rural areas may be able to partner with other entities in their area to access these resources to the benefit of their properties, communities, and residents.
Regulatory Actions and Reports
In June 2024, the White House Council on Environmental Quality released a report on the progress of the federal government in climate adaptation strategies. The report, Assessing the Progress and Impact of Federal Climate Adaptation: Developing Climate Resilience Indicators and Metrics, updates interested parties on progress in developing and implementing Climate Resilience Indicators and Metrics for federal agencies. Including both process- and outcome-related indicators, the report establishes expectations for each federal agency’s Climate Adaptation Plan.
FEMA has also issued a final rule adopting the requirements of the updated Federal Flood Risk Management Standard (FFRMS). According to FEMA, “this action is the latest in an all-of-government approach to minimize flood risks and implement the FFRMS. These efforts have included the issuance of a Federal Flood Standard Support Tool, a FFRMS Standard Floodplain Determination Job Aid, a State of the Science Report on Climate-Informed Science Approach for flood hazards, and implementation of the FFRMS by the Departments of Agriculture, Defense, Health and Human Services, Housing and Urban Development, Interior, and General Services Administration.”
Other Grant and Program Updates
The Inflation Reduction Act and the Bi-Partisan Infrastructure Law included many new program authorizations that the implementing federal agencies had to create from scratch, so many are just now coming online. Several of the programs include off-budget ‘financing tools’ that can be used for investments in housing, or are open to housing authorities, to advance each program’s various goals – from universal high-speed broadband to decarbonization (energy use reductions) and electrification goals. Recent developments for some of these programs are provided below.
Charging and Fueling Infrastructure Grants.
Open to public housing authorities, these grants are intended “to strategically deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in the places people live and work—urban and rural areas alike.” More information can be found at CFI – Environment, and the grants.gov posting can be found at Charging and Fueling Infrastructure (CFI) Discretionary Grant Program ROUND 2.
Reconnecting Communities Pilot (RCP) Grant Program
The FY 23 NOFO for the RCP program was released early in July 2024. According to the program website, the RCP Program focuses on improving access to daily needs such as jobs, education, healthcare, food, nature, and recreation, and foster equitable development and restoration, and provide technical assistance to further these goals. Funding for this fiscal year is a combined allocation of FY 24, FY 25, and FY 26. Up to $607 million is available for planning, capital construction, and technical assistance.
Potential applicants who are interested in pursuing a reconnecting type project but are not prepared to submit funding requests within 90 days can submit a request for technical assistance through the Reconnecting Communities Institute. Many reconnecting projects are also eligible for funding under formula programs or eligible discretionary grant programs. More information can be found on DOT’s Discretionary Grants Dashboard.
Digital Equity Act Programs Update
The National Telecommunications and Information Administration (NTIA) continues to roll out various Internet for All programs under its Broadband USA umbrella. These programs, all implemented via state or regional intermediaries, include: