A User Guide to the Inflation Reduction Act
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U.S. Department of the Treasury/IRS
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Clean Energy Projects that Deliver Good Jobs | Clean Energy Investment Tax Credit (ITC) Extension (Sec 13102) – Investment tax credits for clean energy deployment, including onshore and offshore wind, solar, geothermal, battery storage, and pumped-storage hydro. | $13.9 Billion
Base Credit: 6% of Project Cost; Bonus Credit: 30% of Project Cost if prevailing wage and registered apprenticeship requirements are met |
Treasury (IRS) | Investment Tax Credit
Direct pay available for state, local, and tribal governments, TVA, rural electric co-ops, tax exempt (must meet domestic content requirements to receive direct pay, phased in 2024-2026) |
FY22-25 | Prevailing Wage and
Registered Apprenticeship Utilization |
Developers, state, local, Tribes, utilities, co-ops, tax-exempt entities | Existing Program |
| Clean Energy Projects that Deliver Good Jobs | Clean Energy ITC Technology Neutral, (Sec. 13702) – Investment tax credit for energy deployment for projects with net zero carbon emissions. This credit will go into effect for new projects placed in 2025 through sometime in the 2030s. This credit is not limited to a particular clean energy technology, but rather any technology that does not contribute carbon emissions. | $50.8 Billion
Base Credit: 6% of Project Cost; Bonus Credit: 30% of Project Cost if prevailing wage and registered apprenticeship requirements are met |
Treasury (IRS) | Investment Tax Credit Direct pay available for state, local, and tribal governments, TVA, rural electric co-ops, tax exempt entities (must meet domestic content requirements to receive direct pay, phased in 2024-2026) |
FY25-35* | Prevailing Wage and Registered Apprenticeship Utilization | Developers, state, local, tribes, utilities, co-ops, tax-exempt entities | New Program; Technology Neutral |
| Clean Energy Projects that Deliver Good Jobs | Clean Energy Production Tax Credit (PTC) Extension (Sec. 13101) – Production tax credits for clean energy deployment, including solar, offshore and onshore wind, and geothermal to receive a tax credit for the production of electricity based on kilowatt-hour of power produced. | $51 Billion
Base Credit: 0.05 cents per kWh, increased for inflation since 1992 Bonus Credit: .25 cents per kWh if prevailing wage and registered apprenticeship requirements are met, increased for inflation since 1992** |
Treasury (IRS) | Production Tax Credit
Direct pay available for state, local, and tribal governments, tax exempt entities (must meet domestic content requirements to receive direct pay, phased in 2024-2026) |
FY22-25 | Prevailing Wage and
Registered Apprenticeship Utilization |
Developers,
utilities, co-ops, state, local, tribes, tax-exempt entities |
Existing Program |
| Clean Energy Projects that Deliver Good Jobs | Clean Energy Production Tax Credit (PTC) Technology Neutral (Sec. 13701) – PTC for energy projects with net zero carbon emissions. This credit will go into effect for new projects placed in service in 2025 through sometime in the 2030s. This credit is not limited to a particular clean energy technology, but rather any technology that does not contribute carbon emissions. | $11.2 Billion
Base Credit: 0.05 cents per kWh, increased for inflation since 1992 Bonus Credit: 0.25 cents per kWh if prevailing wage and registered apprenticeship requirements are met, increased for inflation since 1992** |
Treasury (IRS) | Production Tax Credit
Direct pay available for state, local, and tribal governments, TVA, rural electric co-ops, tax exempt entities (must meet domestic content requirements to receive direct pay, phased in 2024-2026) |
FY25-35* | Prevailing Wage and Registered Apprenticeship Utilization | Developers, utilities, co-ops, state, local, tribes, tax-exempt entities | New Program: Technology Neutral |
| Clean Energy Projects that Deliver Good Jobs | Domestic Content Bonus Credit (Sec. 13101, 13102, 13701, 13702) – (Applicable for the Clean Energy PTCs and ITCs). Establishes a bonus 10% ITC (2% if wage and apprentice requirements not satisfied) or PTCs at 1.10% of the rate for which the project would otherwise qualify for projects utilizing domestic content. This credit will support projects that use domestically made iron and steel as well as a certain percentage of other manufactured components. | Up to 10% ITC on project cost (or up to a 10% increment on PTCs) | Treasury (IRS) | Tax Credit
Direct pay is available for state, local, and tribal governments, TVA, rural electric co-ops, and tax-exempt entities utilizing the domestic content preference. |
FY23-35* | Projects utilizing domestically produced iron and steel, and 55% of manufactured goods. (A ramp up approach annually starting in 2024, ending in 2027 at 55%. Offshore wind will have until 2028 to meet domestic content requirements of 55% | Developers, utilities, co-ops, state, local, tribal, tax-exempt entities | New Program |
| Clean Energy Projects that Deliver Good Jobs | Energy Communities Bonus Credit (Sec. 13101, 13102, 13701, 13702) – (Applicable for the Clean Energy PTCs and ITCs). For qualified facilities that are placed in service within an energy community, a 10% extra ITC (2% if wage and apprentice requirements not satisfied) or PTCs at 1.10% of the rate for which the project would otherwise qualify. | Up to 10% ITC on project cost (or up to a 10% increment on PTCs) | Treasury (IRS) | Tax Credit | FY23-FY35* | For full 10%: Prevailing Wage and Apprenticeship Requirements | This bonus credit is for:
1. Projects on brownfield sites 2. Projects in metropolitan and non-metropolitan statistical areas that (A) at any time after 2009 had 0.17% or greater direct employment or 25% or greater local tax revenues that are attributable to the extraction, processing, transport or storage of coal, oil or natural gas and (B) had an unemployment rate at or above the national unemployment rate for the prior year 3. Projects in census tracts in which (or census tracts adjoining census tracts in which) a coal mine closed after 1999 or a coal-fired electric generating unit retired after 2009. |
New Program |
| Clean Energy Projects that Deliver Good Jobs | Low Income Communities Bonus Credit (Sec. 13103) – (Applicable for the Clean Energy ITCs). An additional ITC of 10% or 20% is available for the development of wind and solar projects in low income communities. | 10% or 20% of project cost | Treasury (IRS) | Investment Tax Credit | FY23-25 | Requires an allocation of credits by the IRS, which has 1,800 MW to allocate in each of calendar years 2023 and 2024 | This bonus credit is specifically for solar and wind projects built in low-income communities or on Indian land or that are part of a qualified low-income residential building project or a qualified low-income benefit project, and associated storage, but only for projects with maximum net output of less than 5 megawatts. | New Program |
| Clean Energy Projects that Deliver Good Jobs | Extension and Modification of Carbon Dioxide Sequestration Credit (Sec. 13104) – Extends the credit for carbon oxide capture facilities that begin construction before the end of 2032. A base credit rate of $17 or a bonus credit rate of $85 per metric ton of carbon oxide captured for geological storage and a base credit rate of $12 or a bonus credit rate of $60 per metric ton of carbon oxide captured and used for enhanced oil recovery or to make a commercial product.
An enhanced credit for direct air capture facilities at a base rate of $36 or a bonus rate of $180 per metric ton of carbon oxide captured for geological storage and base rate of $26 or a bonus rate of $130 per metric ton of carbon captured and used for enhanced oil recovery or to make a commercial product. |
$3.2 Billion
Bonus rate of $60, $85, or $180 per metric ton of CO2, depending on the form of carbon capture and the use to which the captured CO2 is put |
Treasury (IRS) | Tax Credit , Direct pay available for five years | FY23-32 | Prevailing Wage, Apprenticeship Utilization | Carbon capture, utilization, and storage; facilities; electric generation; industrial facilities | Existing Program |
| Clean Energy Projects that Deliver Good Jobs | Zero Emissions Nuclear Power Production Credit (Sec. 13105) – Credit for existing facilities producing nuclear power, regardless of the age of the facility, this credit does not however cover advanced nuclear facilities. | $30 Billion
Base rate of 0.3 cents per kWh, increased for inflation since 1992. Bonus rate of 1.5 cents per kWh, increased for inflation since 1992. The credit amount is reduced as the electricity price increases. |
Treasury (IRS) | Production Tax Credit | FY23-32 | Prevailing Wage, Apprenticeship utilization | Existing nuclear power facilities | New Credit |
| Clean Energy Projects that Deliver Good Jobs | Clean Hydrogen Credit (Sec. 13204) – Credit for producing hydrogen where the lifecycle (well-to-gate) greenhouse gas emissions to make the hydrogen are no more than 4 kg per kg of hydrogen. The full credit can be claimed only if lifecycle greenhouse gas emissions are less than 0.45 kg per kg of hydrogen. Option to claim an ITC on the hydrogen production facility instead. | $13 Billion
Maximum PTC of $3 per kilogram of clean hydrogen, and maximum ITC of 30% of facility cost |
Treasury (IRS) | Tax Credit, Direct pay for PTCs (but not ITC) available for five years | FY22-32 | Prevailing Wage, Apprenticeship Utilization | Owner of a qualified clean hydrogen production facility | New Credit |
| Clean Technology Manufacturing | Extension of the Advanced Energy Project Credit (48C) (Sec. 13501) – Investment tax credit for establishing or retooling a factory to produce a wide range of clean technologies (including renewable energy and EV components).
The tax credit also is expanded to cover installation of equipment that achieves an at least 20% reduction in climate pollution. |
$10 Billion Base Credit: 6% Bonus Credit: 30% |
Treasury (IRS)/DOE | Investment Tax Credit (Direct pay only for tax-exempt and government entities) | Changes begin in 2023
The IRS is expected to allocate the full $10 billion in available tax credits in 2023. |
Prevailing Wage, Apprenticeship Utilization required for bonus credit of 30% instead of base credit of 6% | Manufacturing companies
$4 billion set aside for former coal communities (census tracts with mines closed post-1999 and/or power plants closed post-2009) |
Existing Program |
| Clean Technology Manufacturing | Advanced Manufacturing Production Credit (45X) (Sec. 13502) – New production tax credit for manufacturing solar, wind, and battery components and processing critical minerals including aluminum, cobalt, lithium, nickel, and more to incentivize building new U.S. facilities to support clean energy supply chains at a globally competitive scale. | $30.622 Billion
(This is the Joint Committee on Taxation’s estimate for the credit’s total value.) |
Treasury (IRS) | Production Tax Credit (Direct pay for all entities for five years) | Starts in 2023. The phase-out for solar, wind, and battery components begins in 2030, ends after 2032. The tax credit for critical minerals is permanent. | N/A | Manufacturing and mining companies | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Clean Vehicle Tax Credit (30D) (Sec. 13401) – Encourages the deployment of clean vehicles made in North America with batteries made with North American-manufactured components and critical minerals sourced from countries with which the United States has a free trade agreement. | $7.5 Billion | Treasury (IRS) | Consumer Tax Credit | Jan 1, 2022-Dec 31, 2032 | Final Assembly and Component Conditions; AGI and MSRP Caps | Individuals, the tax credits can be transferred to the auto dealer | Existing Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Used Clean Vehicle Tax Credit (25E) (Sec. 13402) – Accelerates the creation of a secondary market for EVs in order to extend EV access and improve affordability for low-income drivers. | $1.3 Billion
Tax credit of 30% of the vehicle cost or $4,000, whichever is less |
Treasury (IRS) | Consumer Tax Credit | Jan 1, 2022-Dec 31, 2032 | AGI and Sale Price Caps | Individuals, the tax credits can be transferred to the auto dealer | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Commercial Clean Vehicle Tax Credit (45W) (Sec. 13403) – Accelerates the deployment of clean vehicles for commercial and other fleets. | $3.6 Billion
Tax credit of 15% of the vehicle cost (30% for a pure EV), but not more than the incremental cost of above what a comparable powered solely by gasoline or diesel would cost |
Treasury (IRS) | Consumer Tax Credit | Jan 1, 2022-Dec 31, 2032 | N/A | Commercial uses | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Alternative Fueling Property Credit (30C) (Sec. 13404) – Provides a tax credit of up to $100,000 per property for the installation of EV charging or alternative fueling infrastructure for ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas or hydrogen. | $1.7 Billion
The base tax credit is 6%, but it increases to 30% if the wage and apprentice requirements are satisfied |
Treasury (IRS) | Consumer Tax Credit | Jan 1, 2022-Dec 31, 2032 | Restricted to low-income and rural areas; Additional credit for projects guaranteeing prevailing wage for workers and apprentice labor hours | Individuals, Commercial Entities | Existing Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Extension of Incentives for Biodiesel, Biodiesel Mixtures, and Renewable Diesel (40A) (Sec. 13201) – Extends the $1/gallon production tax credit for biodiesel, biodiesel mixtures, and renewable diesel, with an additional $0.10/gallon credit for small agri-biodiesel producers. | $5.6 Billion | Treasury (IRS) | Production Tax Credit | Until Dec 31, 2024 | N/A | Producers of biodiesel, biodiesel mixtures, and renewable diesel | Existing Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Extension of Alternative Fuel Credit (6426) (Sec. 13201) – Extends the $0.50/gallon production tax credit for alternative fuels, including liquified petroleum gas, CNG/LNG, liquified hydrogen, and others (not including alcohol-based fuels). | $ 5.6 Billion | Treasury (IRS) | Production Tax Credit | Until Dec 31, 2024 | N/A | Producers/vendors of qualifying alternative fuels for use in motor vehicles, motor boats, or aviation | Existing Program |
| Buildings | Energy Efficient Commercial Buildings Tax Deduction (179D) (Sec. 13303) – Enables building owners to claim a tax deduction for installing qualifying systems in buildings that reduce energy usage by at least 25%. Tenants may be eligible if they make construction expenditures. | $360 Million | Treasury (IRS) | Tax Deduction | 2023-2032 | Prevailing Wage, Apprenticeship Utilization | Retrofits qualify at commercial buildings placed in service five years or more before establishment of a qualified retrofit plan; government and tax-exempt entities can assign the deductions to the person primarily responsible for the design work | Existing Program |
| Buildings | Residential energy efficiency tax credit (25C) (Sec. 13301) – Provides homeowners with a 30% tax credit for the cost of certain high-efficiency heating, cooling, water-heating appliances, energy-efficient windows and doors, and home energy audits. The maximum annual credit is $1,200 ($2,000 for heat pumps and biomass stoves and boilers). There are sub-limits for particular types of equipment. | $12.45 Billion | Treasury (IRS) | Tax Credit | 2023-2032 | Qualified manufacturer list | Homeowners | Existing Program |
| Buildings | New Energy Efficient Home Tax Credit (45L) (Sec. 13304) – Builders can claim a tax credit of up to $5,000 for each new home or dwelling unit that meets specified energy efficiency requirements. | $2.04 Billion | Treasury (IRS) | Tax Credit | 2023-2032 | Prevailing Wage for multi-family buildings | Builders | Existing Program |
| Supporting Energy Transition Workers and Communities | Energy Communities Bonus Credit (Sec. 13101, 13102, 13701, 13702) – (Applicable for the Clean Energy PTCs and ITCs). For qualified facilities that are placed in service within an energy community, a 10% extra ITC (2% if wage and apprentice requirements not satisfied) or PTCs at 1.10% of the rate for which the project would otherwise qualify. | Up to 10% ITC on project cost (or up to a 10% increment on PTCs) | Treasury (IRS) | Tax Credit | FY23-FY35 | For full 10%: Prevailing Wage and Apprenticeship Requirements | This bonus credit is for
1. Projects on brownfield sites 2. Projects in metropolitan or non-metropolitan statistical areas that (A) at any time after 2009 had 0.17% or greater direct employment or 25% or greater local tax revenues that are attributable to the extraction, processing, transport, or storage of coal, oil or natural gas industries and (B) had an unemployment rate at or above the national unemployment rate for the prior year 3. Projects in census tracts in which (or census tracts adjoining census tracts in which) a coal mine closed after 1999 or a coal-fired electric generating unit retired after 2009. |
New Program |
*This credit begins to phase out in 2034, reducing 25% annually, until 2035 at which point it phases out all together. Further, the credit remains available if U.S. annual greenhouse gas emissions have reduced by 75% by the time the credit phases out.
**Sec. 13101 and 13701 provide a credit per kilowatt hour. The legislation allows for the price to increase to adjust for inflation since 1992. The bill specifies the credit as .03/.15 cents per KWH, however the price adjusted for inflation would be .05/.25 cents per KWH.
U.S. Department of Energy (DOE)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Clean Technology Manufacturing | Extension of the Advanced Energy Project Credit (48C) (Sec. 13501) – Investment tax credit for establishing or retooling a factory to produce a wide range of clean technologies (including renewable energy and EV components).
The tax credit also is expanded to cover installation of equipment that achieves an at least 20% reduction in climate pollution. |
$10 Billion Base Credit: 6% Bonus Credit: 30% |
Treasury (IRS)/DOE | Investment Tax Credit (Direct pay only for tax-exempt and government entities) | Changes begin in 2023
The IRS is expected to allocate the full $10 billion in available tax credits in 2023. |
Prevailing Wage, Apprenticeship Utilization required for bonus credit of 30% instead of base credit of 6% | Manufacturing companies
$4 billion set aside for former coal communities (census tracts with mines closed post-1999 and/or power plants closed post-2009) |
Existing Program |
| Clean Technology Manufacturing | Defense Production Act (DPA) (Sec. 30001) – Funding for DPA, which the Biden administration is using to spur growth in clean technology manufacturing. | $500 Million | DOD/DOE | Purchase agreements, loans and loan guarantees, or technology procurement | FY22-FY24 | N/A | N/A | Existing Program |
| Industrial Transformation | Advanced Industrial Facilities Deployment Program (Sec. 50161) – Financial assistance for commercial-scale deployment of industrial emissions reduction technology. | $5.812 Billion | DOE | Competitive Financial Assistance (Grants, Rebates, Loans, or Cooperative Agreements) | FY 22-26 | Criteria for competitive applications include measuring the benefits to the local community | A domestic, non-Federal, nonpower industrial or manufacturing facility engaged in energy-intensive industrial processes | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Advanced Technology Vehicle Manufacturing Loan Program (ATVM) (Sec. 50142) – Provides direct loans to manufacturers to re-equip, expand, or establish facilities that produce clean vehicles (light-, medium-, or heavy-duty) and their components, as well as trains and locomotives, maritime vessels, aircraft, and hyperloop technology.
Eliminates the cap (previously $25 billion) on loans from the ATVM. |
$3 Billion | DOE | Direct Loans | FY2022-FY2028 | Prevailing Wage for Construction Work | Facilities manufacturing: fuel efficient light, medium- and heavy-duty vehicles, maritime vessels, trains, aircraft, and hyperloop technology, and facilities manufacturing parts for any of the above vehicles | Existing Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Domestic Manufacturing Conversion Grants (Sec. 50143) – Provides grants to support the domestic production of EVs, hybrids, plug-in hybrid electric vehicles (PHEV), and hydrogen fuel cell vehicles, especially in recently closed or at-risk facilities. | $2 Billion | DOE | Competitive Grant | FY2022-FY2031 | Prevailing Wage for Construction Work | Facilities manufacturing: EVs, hybrids, PHEVs, and hydrogen fuel cell vehicles | Existing Program (First Time Funding) |
| Transmission Deployment | Transmission Line and Intertie Incentives (Sec. 50151) – Incentives for new high-capacity lines and upgrading existing lines for interconnections. | $2 Billion | DOE | Loans, Competitive Grants | FY22-FY31 | Prevailing Wage | Utilities, developers, co-ops, | New Program |
| Transmission Deployment | Siting of Interstate Electricity Transmission Lines (Sec. 50152) – Grants to facilitate new siting of interstate transmission lines. | $760 Million | DOE | Competitive Grants | FY22-FY31 | N/A | State, local, or Tribal government | New Program |
| Transmission Deployment | Interregional and Offshore Wind Electricity Transmission Planning (Sec. 50153) – Integrated planning for connecting new offshore wind projects. | $100 Million | DOE | Program Funding conducted by agency | FY22-FY32 | N/A | Agency Staff | New Program |
| Buildings | Home Energy Performance-Based, Whole House Rebates (Sec. 50121) – Provides rebates to homeowners for a host of home improvements, including insulation updates, HVAC system replacements, and retrofits that save whole-house energy use. Larger rebates would be available for lower-income program participants. | $4.3 Billion | DOE | Formula Grants | FY22 – FY31 | State Energy Offices may increase amount of rebate to low or middle income households | State Energy Offices | New Program |
| Buildings | State-based Home energy efficiency contractor training grants (Sec 50123) – Training and education to contractors involved in the installation of home energy efficiency and electrification improvements. | $200 Million | DOE | Formula Grants | FY22- FY31 | N/A | State Energy Offices | New Program |
| Buildings | High-Efficiency Electric Home Rebate (Sec. 50122) – Electrification rebates for qualified/efficient: heat pumps, stoves, insulation, etc; majority of rebates, designated for tribal or low-income communities, are called “qualified electrification project” (QEP). | $4.5 Billion | DOE | Formula Grants | FY22 – FY31 | Rebates target low- and middle- income households | State Energy Offices, Tribes | New Program |
| Buildings | Building codes (Sec. 50131) – Assist states and local governments with 1) building code adoption 2) towards zero energy building codes. | $1 Billion | DOE/Building Technologies Office | Competitive Grants | FY22-29 | No match requirement | States and local governments | New Program |
| Supporting Energy Transition Workers and Communities | Prioritization of the Advanced Energy Project Credit in Energy Communities (Sec. 13501) – Revives the Section 48C qualified advanced energy property credit, and reserves $4 billion for manufacturing investments to boost job growth and economic opportunities in energy communities (communities in a census tract or a directly adjoining census tract in which a coal mine closed after 1999 or coal-fired electric generating unit closed after 2009). | $10 Billion | DOE | Tax Credit | FY23 | Prevailing Wage, Apprenticeship Utilization | Qualifying manufacturing and industrial facilities | Existing Program |
| Supporting Energy Transition Workers and Communities | Energy Infrastructure Reinvestment Financing (Sec. 50144) – Establishes a program to provide financial support to eligible entities to retool, repower, repurpose, or replace energy infrastructure that has ceased operations; or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants greenhouse gas emissions. | $5 Billion | DOE (LPO) | Loans | FY 22-26 | Proposal must include an analysis of how the proposed project will engage with and affect associated communities | Developers, utilities, nonprofits, co-ops | New Program |
| Cross-cutting Investments | Title 17 Innovative Clean Energy Loan Guarantee Program (Sec. 50141) – Provides an additional $40 billion of loan authority for clean energy projects eligible for loan guarantees under section 1703 of the Energy Policy Act of 2005. | $40 Billion | DOE (LPO) | Loans | FY 22-26 | N/A | Developers, utilities, nonprofits | Existing Program |
| Cross-cutting Investments | Funding for environmental review (Sec. 23001, 50301, 50302, 50303, 60115, 60402, 60505, 70007) – Funding for federal agencies to ensure efficient and effective environmental reviews for large federally funded projects. | $995 Million | DOE, FERC, DOI, DOT (FHWA), EPA, USFS, CEQ, Federal Permitting Improvement Steering Council | N/A | FY22-26 | N/A | N/A – internal federal agency funding | N/A |
U.S. Environmental Protection Agency (EPA)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Industrial Transformation | Environmental Product Declaration (EPD) Assistance Program (Sec. 60112) – Provide grants and technical assistance to businesses and states/Tribes/nonprofits that support such businesses to develop EPDs and support “other activities that assist in measuring, reporting, and steadily reducing the quantity of embodied carbon of construction materials and products.” | $250 Million | EPA | Competitive Grant – Project Grant and Technical Assistance | FY 22-31 | N/A | Businesses and states, Tribes, and nonprofits that support such businesses | New Program |
| Industrial Transformation | Low-Carbon Labeling Program (Sec. 60116) – Identify and label low-embodied carbon materials and products used for buildings and transportation projects. | $100 Million | EPA | Not specified | FY 22-26 | N/A | N/A | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Clean Heavy Duty Vehicles (Sec. 60101) – Provides grants to support the replacement of eligible vehicles with zero emission class 6 and 7 vehicles, the purchase, installation, operation, or maintenance of charging or fueling infrastructure, and the provision of workforce development and training to support zero emission vehicle adoption. | $1 Billion | EPA | Competitive Grant | FY2022-FY2031 | $400 Million reserved for grantees in non-attainment areas for any air pollutant | States, municipalities, Tribes, non-profit school transportation associations, entities that sell or lease zero emissions vehicles (ZEVs) or charging/fueling equipment | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Grants to Reduce Air Pollution at Ports (Sec. 60102) – Awards rebates and grants to purchase or install zero emission port equipment and technology, conduct planning and permitting activities, and develop climate action plans at ports. | $3 Billion | EPA | Competitive Grant, Rebate | FY2022-FY2027 | $750 Million reserved for grantees in non-attainment areas for any air pollutant | Port authorities, state, regional, local, or Tribal agencies with jurisdiction over port authorities or ports, air pollution control agencies, and private entities that: apply in partnership with any of the aforementioned entities, or own, operate, or use the facilities, cargo handling equipment, transportation equipment, or related technology of a port | New Program |
| Buildings | School air pollution (Sec. 60106) – Grants and technical assistance to monitor and reduce air pollution at public schools in low-income and disadvantaged communities. | $50 Million | EPA (OAR) | Competitive Grants | FY22 – FY31 | Low-income and disadvantaged communities | Schools, public | Existing Program |
| Supporting Energy Transition Workers and Communities | Superfund (Sec. 13601) – Reinstates the Superfund excise tax on oil and petroleum, which provides the federal government with resources to respond to environmental threats not otherwise addressed by responsible parties. | N/A | EPA (OLEM) | Excise Tax | FY23-32 | N/A | Sites deemed “Superfund” by EPA. Funds replenish the Hazardous Substance Superfund Trust Fund (Superfund) | Existing Program |
| Healthy and Resilient Communities | Environmental and Climate Justice Block Grants (Sec. 60201) – Funding for community-led efforts in disadvantaged communities to address climate and environmental injustice. | $3 Billion | EPA (OEJ) | Block Grant | FY22-26 | To benefit disadvantaged communities | Community-based non-profit or partnership of aforementioned plus Tribe, local government, or institution of higher education | New Program |
| Healthy and Resilient Communities | Funding to Address Air Pollution (Sec. 60103) – $117.5 million to deploy, integrate, support, and maintain fenceline air monitoring. $50 million to expand the national ambient air monitoring network with new multi-pollutant monitors and to replace, repair, and maintain existing monitors. $3 million to operate air quality sensors in low-income and disadvantaged communities. $15 million to test and address emissions from wood heaters. $20 million for monitoring methane emissions. $25 million for Clean Air Act Grants. $5 million for implementing greenhouse gas and zero-emissions standards relating to mobile sources. | $235.5 Million | EPA (OAR) | Competitive grants | FY22-FY31 | To benefit low-income or disadvantaged communities | State air pollution control agencies; public or nonprofit private agencies, institutions, and organizations; tribes; individuals | Existing Program |
| Healthy and Resilient Communities | Methane Emissions Reduction Program (Sec. 60113) – For grants, rebates, contracts and loans to provide financial and technical assistance to owners and operators of applicable facilities to prepare and submit greenhouse gas reports; methane emissions monitoring; providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems, mitigate legacy air pollution from petroleum and natural gas systems in disadvantaged and low-income communities, and support environmental restoration provide support for communities. | $1.5 Billion | EPA (OAR) | Competitive Grants, Loans, and Technical Assistance | FY22-FY28 | N/A | Applicable facility: offshore and onshore petroleum and natural gas production; onshore natural gas processing; onshore natural gas transmission compression; underground natural gas storage; liquefied natural gas storage; liquefied natural gas import and export equipment; onshore petroleum and natural gas gathering and boosting; and onshore natural gas transmission pipeline. | New Program |
| Cross-cutting Investments | Greenhouse Gas Reduction Fund (Sec. 60103) – Funding to deploy low and zero emissions technologies, especially in low income and disadvantaged communities. | $27 Billion | EPA | Competitive grants | FY22-FY24 | To benefit low-income and disadvantaged communities | States, municipalities, and Tribal governments; non-profit organizations | New Program |
| Cross-cutting Investments | Climate Pollution Reduction Grants (Sec. 60114) – Grants to allow states, municipalities, and Tribes to develop and implement plans to reduce greenhouse gas pollution. | $ 5 Billion | EPA (OAR) | Competitive grants | FY22-31 | Applications must include the degree to which greenhouse gas air pollution is projected to be reduced in low-income and disadvantaged communities. | State air pollution control agencies; public or nonprofit private agencies, institutions, and organizations; Tribes | New Program |
| Cross-cutting Investments | Funding for environmental review (Sec. 23001, 50301, 50302, 50303, 60115, 60402, 60505, 70007) – Funding for federal agencies to ensure efficient and effective environmental reviews for large federally funded projects. | $995 Million | DOE, FERC, DOI, DOT (FHWA), EPA, USFS, CEQ, Federal Permitting Improvement Steering Council | N/A | FY22-26 | N/A | N/A – internal federal agency funding | N/A |
U.S. Department of the Interior (DOI)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Healthy and Resilient Communities | Tribal Climate Resilience (Sec. 80001) – For Tribal climate resilience and adaptation programs to support their climate adaptation planning, ocean and coastal management planning, capacity building, and relocation, managed retreat, and protect-in-place planning for climate risks. | $260 Million | Interior (BIA) | Various (e.g. Technical Assistance, Direct Expenditure, Grants, Contracts, Cooperative Agreements) | FY22-FY31 | Not Subject to federal cost-sharing or matching requirements; Excluded from funds calculated for “small and needy” program | Tribal Nations and organizations | Existing Program |
| Healthy and Resilient Communities | National Parks and Public Lands Ecosystem Resilience (Sec. 50221-50223) – $250 million for the conservation, protection, and resiliency of lands and resources administered by National Park Service (NPS) and Bureau of Land Management (BLM), $250 million to carry out conservation, ecosystem and habitat restoration projects on lands administered by NPS and BLM. $500 million to provide funding for hiring employees of the NPS. $200 million for deferred maintenance projects in the National Park System. | $1.2 Billion | Interior (NPS, BLM) | Project Grants | FY22-FY31 | Not subject to federal cost-share/matching | N/A – internal federal agency funding | Existing Program |
| Healthy and Resilient Communities | Drought Response and Preparedness (SEC. 50231-50233) – $550 million to the U.S. Bureau of Reclamation for disadvantaged communities to cover the cost of projects that can create reliable sources of water. $25 million to improve canals and other water conveyance facilities by installing solar panels for renewable energy generation. $4 billion to mitigate the impacts of drought through compensation for reduced water consumption, system conversion projects that reduce water demand, and habitat restoration projects. | $4.75 Billion | Interior (Bureau of Reclamation) | Formula and Project Grants | FY22-FY31 | N/A | Public entities and Tribes | New Program |
| Cross-cutting Investments | Funding for environmental review (Sec. 23001, 50301, 50302, 50303, 60115, 60402, 60505, 70007) – Funding for federal agencies to ensure efficient and effective environmental reviews for large federally funded projects. | $995 Million | DOE, FERC, DOI, DOT (FHWA), EPA, USFS, CEQ, Federal Permitting Improvement Steering Council | N/A | FY22-26 | N/A | N/A – internal federal agency funding | N/A |
U.S. Department of Agriculture (USDA)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Clean Energy Projects that Deliver Good Jobs | USDA Assistance for Rural Electric Cooperatives (Sec. 22004) – To make grants and loans for electric cooperatives to purchase renewable energy, purchase renewable energy systems and carbon capture and storage systems, deploy such systems, or make energy efficiency improvements and to make grants for debt relief and other costs associated with terminating the use facilities operating on non-renewable energy and related transmission assets. | $9.7 Billion | USDA (Rural Development) | Loans, Competitive Grants | FY22-FY31 | Prevailing Wage | Rural co-op with certain threshold of customer base | New Program |
| Clean Energy Projects that Deliver Good Jobs | USDA Electric Loans for Rural Renewable Energy (Sec. 22001) – Generation of renewable energy for resale to rural and nonrural residence, including wind, solar, geothermal, hydropower, and biomass. | $1 Billion | USDA (Rural Development) | Competitive Grants | FY22-31 | Prevailing Wage | Developers, local, state, tribal governments, co-ops, non-profits | Existing Program |
| Clean Energy Projects that Deliver Good Jobs | USDA Rural Energy for America Program (REAP) (Sec. 22002) – Deployment of renewable energy for rural business and agricultural producers. Technologies include; solar wind, biomass, geothermal, hydro, hydrogen, and energy efficiency improvements. | $1.9 Billion | USDA (Rural Development) | Competitive Grants, technical assistance | FY22-31 | N/A | Rural businesses and Agricultural Producers | Existing Program |
U.S. Department of the Transportation (DOT)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Industrial Transformation | Low-Carbon Transportation Materials (Sec. 60506) – For the DOT Federal Highway Administration (FHWA) to reimburse eligible recipients for the incremental costs of using low-embodied carbon construction materials and products in projects. | $2 Billion | DOT | Competitive Grants | FY 22-26 | N/A | States, local governments, political subdivision of a state, territory, Tribes, any recipient of funds under the Federal Lands Transportation Program, metropolitan planning organizations, special purpose district or public authority with transportation function | New Program |
| EV Deployment, Automotive Manufacturing, and Supply Chain | Neighborhood Access and Equity Grant Program (Sec. 60501) – Awards grants to state and local governments to improve community walkability and connectivity through the removal, retrofitting, or replacement of roads and highways. | $1.893 Billion | DOT (FHWA) | Competitive Grants | FY22-FY26 | $1.262 Billion reserved for projects including those serving DACs, those with CBAs, and those with anti-displacement policies or community land trusts | States and Territories, Tribes, Units of Local Government, Political Subdivisions of a State, MPOs, Special Purpose Districts and Public Authorities with a Transportation Function, Non-Profits and Higher Ed in partnership with any of the above | New Program |
| Cross-Cutting Investments | Funding for environmental review (Sec. 23001, 50301, 50302, 50303, 60115, 60402, 60505, 70007) – Funding for federal agencies to ensure efficient and effective environmental reviews for large federally funded projects. | $995 Million | DOE, FERC, DOI, DOT (FHWA), EPA, USFS, CEQ, Federal Permitting Improvement Steering Council | N/A | FY22-26 | N/A | N/A – internal federal agency funding | N/A |
U.S. Department of Housing and Urban Development (HUD)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Industrial Transformation | Low-Carbon Affordable Housing (Sec. 30002) – The U.S. Department of Housing and Urban Development (HUD) to fund projects that implement low-emission technologies, materials, or processes or address climate resilience of multifamily properties. | $837.5 Million | HUD | Project Grants and Direct Loans | FY 22-28 | N/A | Any owner or sponsor of an eligible property – defined as a property receiving project-based assistance pursuant to the Housing Act of 1959, the Cranston-Gonzalez National Affordable Housing Act, and the U.S. Housing Act of 1937 | New Program |
| Buildings | Improving Energy Efficiency or Water Efficiency or Climate Resilient of Affordable Housing (Sec. 30002) – Eligible owners and sponsors receive grants and loans to improve their buildings’ energy efficiency, water efficiency, and resilience. | $1 Billion | HUD | Direct Loans, Competitive Grants | FY22-28 | Owners agree to extended affordability of the property | Owners and sponsors of HUD-subsidized Section 202, 811, Project-based Section 8, and Section 236 properties that agree to an extended period of affordability | New Program |
U.S. Department of Labor (DOL)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Supporting Energy Transition Workers and Communities | Black Lung (Sec. 13901) – Permanently extends the tax to fund the Black Lung Disability Trust Fund. | N/A | DOL (OWCP) | Excise Tax | Permanent | N/A | Coal miners disabled by Black Lung and their dependents | Existing Program |
U.S. Department of Defense (DOD)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Clean Technology Manufacturing | Defense Production Act (DPA) (Sec. 30001) – Funding for DPA, which the Biden administration is using to spur growth in clean technology manufacturing. | $500 Million | DOD/DOE | Purchase agreements, loans and loan guarantees, or technology procurement | FY22-FY24 | N/A | N/A | Existing Program |
General Services Administration (GSA)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Industrial Transformation | Low-Carbon Federal Buildings (Sec. 60503) – To the Federal Buildings Fund to acquire and install low-embodied carbon materials and products for use in the construction or alteration of buildings under the jurisdiction, custody, and control of the GSA. | $2.15 Billion | GSA | Competitive Contracts | FY 22-26 | N/A | N/A | Existing Program |
| Buildings | High Performance Green Buildings (Sec. 60502) – Provides funding to the GSA to convert GSA facilities to high-performance green buildings. | $250 Million | GSA | Federal Buildings Fund; Internal Agency Budget | FY22-31 | N/A | Federal facilities | Existing Program |
Federal Emergency Management Agency (FEMA) and National Oceanic and Atmospheric Administration (NOAA)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| Industrial Transformation | Low-Carbon Disaster Relief (Sec. 70006) – Authority to provide financial assistance for costs associated with low-carbon materials and incentives that encourage low-carbon and net-zero energy projects (with increased federal cost share). | N/A | FEMA | Competitive Grants and Technical Assistance | FY 22-26 | N/A | States, local governments, Tribes | Existing Program |
| Healthy and Resilient Communities | NOAA National Coastal Resilience Fund (Sec. 40001) – For the conservation, restoration, and protection of coastal and marine habitats, resources, Pacific salmon, and other marine fisheries, to enable coastal communities to prepare for extreme storms and other changing climate conditions, and for projects that support natural resources that sustain coastal and marine resource-dependent communities, marine fishery and marine mammal stock assessments, and for related administrative expenses. | $2.6 Billion | Commerce (NOAA) | Contracts, Formula Grants, Cooperative Agreements, and Technical Assistance. | FY22-FY26 | Secretary may waive or reduce the required non-Federal share | Coastal states, Governments, nonprofit organizations, local governments, and institutions of higher education | Existing Program |
United States Postal Service (USPS)
| Priority Area | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
|---|---|---|---|---|---|---|---|---|
| EV Deployment, Automotive Manufacturing, and Supply Chain | USPS Clean Fleets (Sec. 70002) – Deposits funding to the Postal Service Fund for the purchase of zero emission delivery vehicles and the purchase, design, and installation of ZEV infrastructure. | $3 Billion | USPS | Deposit to Postal Service Fund | FY22-FY31 | N/A | USPS | New Program |