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Global temperature changes

EPA Seeks Input on $27 Billion Greenhouse Gas Reduction Fund

Strategic Insights

— 2 min read

The U.S. Environmental Protection Agency (EPA) has released a request for information on the $27 billion Greenhouse Gas Reduction Fund, created under the Inflation Reduction Act to accelerate the transition to clean energy and combat climate change. The fund is notable for its massive size, roughly three times the EPA's annual budget, and its broad scope, which includes three distinct accounts totaling $15 billion for zero-emissions and climate-related activities in low-income and disadvantaged communities.

Key Takeaways:

  • The Greenhouse Gas Reduction Fund is a $27 billion pot of money aimed at cutting greenhouse gas emissions nationwide, with $15 billion earmarked for zero emissions and climate-related activities in low-income and disadvantaged communities.
  • The law calls for the EPA to get the money out the door to states, green banks, or other intermediaries by September 2024, which will be charged with implementing programs to get the funds into circulation.
  • The EPA has an enormous amount of latitude in designing the programs, with open questions about what types of activities should be prioritized for financing, how to ensure money flows to disadvantaged communities, what types of loans or grants should be available, who should administer the funds, and what kind of impact should be expected.
  • USGBC's comments focused on the need to prioritize homes and buildings with the funding, particularly homes and buildings in low-income or disadvantaged communities, and emphasized the importance of deep retrofits to existing buildings.
  • The green building community understands the critical benefits that can be gained in reaching low-income communities with energy efficiency, green buildings, and clean energy projects, but faces challenges such as market inertia and limited financing options.
  • The EPA is urged to design an ambitious program that meets the objectives of the fund, including prioritizing homes and buildings in low-income communities, providing robust forms of financing, and streamlining project evaluation and administration.

Statistics:

  • The Greenhouse Gas Reduction Fund is approximately three times the size of the EPA's annual budget.
  • $15 billion of the fund is earmarked for zero emissions and climate-related activities in low-income and disadvantaged communities.
  • The EPA must get the money out the door to states, green banks, or other intermediaries by September 2024.
  • The fund seeks to stimulate new activity and avoid competing with existing private financing programs.

Sources:

  • US Environmental Protection Agency (2024) - Request for Information on the $27 Billion Greenhouse Gas Reduction Fund [Retrieved from:
  • U.S. Green Building Council (2024) - Comments on the EPA's Request for Information on the Greenhouse Gas Reduction Fund [Retrieved from:

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