Cross-cutting Investments and Metrics
In addition to investments discussed above, the Inflation Reduction Act includes several important provisions that cut across several priority areas.
The Inflation Reduction Act provides an additional $40 billion of loan authority to the Title 17 Innovative Clean Energy Loan Guarantee Program. This extends to all currently eligible DOE Title 17 Innovative Clean Energy technology categories, which include solar, energy storage, transmission, and wind energy. The law sets aside $3.6 billion in credit subsidy to support the cost of those loans and 3% for administrative expenses. This funding will also support the programs authorized by the BIL for projects involving critical minerals processing, manufacturing, and recycling, and removes the innovation requirement for State Energy Financing Institution-backed projects.
A new Greenhouse Gas Reduction Fund (sometimes referred to as a green bank) provides funding to support the rapid deployment of low- and zero-emission technologies. The fund is divided into three “pots” of funding. The first contains $7 billion for programs aimed at deploying clean energy technologies like rooftop solar and pollution-reducing technologies in low-income and disadvantaged communities through providing grants, loans, or other forms of financial assistance and technical assistance. The second pot provides $8 billion for eligible institutions that provide financial and technical assistance for clean energy projects benefiting low-income and disadvantaged communities. The third pot contains $12 billion that can be used broadly to support eligible direct and indirect investments in renewable energy projects nationwide, with a small set aside for administrative costs. These funds can also be used in public/private partnerships.
The Inflation Reduction Act also creates a new $5 billion Climate Pollution Reduction grant program at the EPA for states, municipalities, and Tribes to develop and implement plans to reduce greenhouse gas pollution. The law provides $250 million for the development of plans and directs EPA to make planning grants to at least one recipient in each state. EPA will then competitively award $4.75 billion for the implementation of these plans. These funds can be used for a wide variety of policies, including EV charging infrastructure, buildings, transit, natural infrastructure solutions, and more.
Finally, the law includes nearly $1 billion to ensure federal agencies can conduct efficient and effective environmental reviews and public engagement on large, federally-funded infrastructure and climate projects. This funding is split up through multiple agencies across the federal government, and will be key to ensuring that we can rapidly deploy clean energy technology.
|Category||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|
|Cross-cutting||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||Greenhouse Gas Reduction Fund (Sec. 60103) – Funding to deploy low and zero emissions technologies, especially in low income and disadvantaged communities.||$27 Billion||EPA||Competitive grants||FY22-FY24||To benefit low-income and disadvantaged communities||States, municipalities, and Tribal governments; non-profit organizations||New Program|
|Cross-cutting||Climate Pollution Reduction Grants (Sec. 60114) – Grants to allow states, municipalities, and Tribes to develop and implement plans to reduce greenhouse gas pollution.||$ 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||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|