Staff Report – 

WASHINGTON, D.C. — The Biden administration announced Wednesday it is making $250 million available to develop innovative strategies to cut climate pollution and build clean energy economies.

The money will distributed in the form of planning grants through the Environmental Protection Agency, and the funding will go to states, local governments, Tribes, and territories from the $5 billion Climate Pollution Reduction Grants program created by President Biden’s Inflation Reduction Act. The program provides flexible planning resources for the development of scalable solutions that protect people from pollution and advance environmental justice.

“We know that tackling the climate crisis demands a sense of urgency to protect people and the planet,” EPA Administrator Michael S. Regan said in making the announcement. “President Biden’s Inflation Reduction Act is a historic opportunity to provide communities across the country with the resources they need to protect people from harmful climate pollution and improve our economy.”

All 50 states, the District of Columbia and Puerto Rico are eligible to receive $3 million in grant funds. Each of the 67 most populous metropolitan areas in the country are eligible to receive $1 million for plans to tackle climate pollution locally.

EPA is also making millions in noncompetitive planning grant funds available to territory and tribal governments. Later this year, EPA will launch a competition for $4.6 billion in funding to implement projects and initiatives included in these plans. States, cities, territories, and Tribes can also use this funding to develop strategies for using the other grant, loan, and tax provisions secured by President Biden’s historic legislation, including the Inflation Reduction Act and Bipartisan Infrastructure Law, to achieve their clean energy, climate, and environmental justice goals.

“These Climate Pollution Reduction Grants are an important first step to equip communities with the resources to create innovative strategies that reduce climate emissions and drive benefits across the country,” Regan said.

The Inflation Reduction Act includes historic levels of funding to combat climate change while creating good-paying jobs and advancing environmental justice, he added.

This announcement builds on $550 million announced last week for EPA’s new Environmental Justice Thriving Communities Grantmaking program and $100 million announced earlier this year for environmental justice grants to support underserved and overburdened communities. In addition, the Greenhouse Gas Reduction Fund will award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country.

These climate plans will include greenhouse gas emissions inventories, along with emissions projections and reduction targets. The plan will have positive economic, health, and social benefits, including direct benefits to low-income and disadvantaged communities. Workforce needs will be assessed to support decarbonization and a clean energy economy, along with future government staffing and budget needs.

Other sources of federal funding will include the Bipartisan Infrastructure Law.

Under the formula-based program for planning grants, the governments of all states, the District of Columbia, and Puerto Rico are eligible for up to $3 million. Each state government will be expected to develop or update any existing climate action plan in collaboration with sub-state jurisdictions including air pollution control districts and large and small municipalities statewide, and to conduct meaningful engagement including with low income and disadvantaged communities throughout its jurisdiction.

To further EPA’s efforts to cover as much of the population as possible under regional planning grants, the 67 most populous metropolitan areas will be awarded $1 million each to develop regional planning grants with key stakeholders in their area. Communities that do not rank in the top 67 most populous areas will have opportunities to partner with their states and neighboring jurisdictions.

The territories of Guam, American Samoa, U.S. Virgin Islands, and the Northern Mariana Islands as well as federally recognized Indian Tribes are also eligible entities, and their application process is detailed in a separate program guidance.

Tribes have a set-aside of $25 million for grants up to $500,000 for a single Tribe or $1 million for groups of 2 or more. Territories are eligible for up to $500,000 each. Applicants are not required to provide a cost-share or matching funds for this funding.

States must submit a notice of intent to participate by March 31, 2023. The 67 most populous metropolitan areas nationally must submit a notice of intent to participate by April 28, 2023.

EPA encourages all eligible entities to review the complete program guidance documents available on EPA’s website to learn more about these planning grants, details about eligibility criteria and allocation formulas, important deadlines, and other requirements.

This funding for climate planning will be followed later this year by $4.6 billion in implementation grant funding that will support the expeditious implementation of investment-ready policies created by the CPRG planning grants, programs, and projects to reduce greenhouse gas emissions in the near term. Through the CPRG program, EPA will support the development and deployment of technologies and solutions that will reduce greenhouse gas emissions and harmful air pollution, as well as transition America to a clean energy economy that benefits all Americans.

By summer 2023, EPA Regional Offices expect to award and administer the funding agreements.

EPA will hold two webinars for state, territory, local and tribal governments to provide additional information on the program guidance for the noncompetitive planning grants on March 2, 2023 and March 7, 2023 at 2 p.m. Eastern Time. A recording of the webinar will be posted to the Climate Pollution Reduction Grants webpage.