Greenhouse Gas Reduction Fund: National Clean Investment Fund

The Inflation Reduction Act (IRA) amends the Clean Air Act to include Section 134 (42 USC � 7434), which authorizes the EPA to make competitive grants under the National Clean Investment Fund. The National Clean Investment Fund is currently funded by two separate appropriations to make competitive grants to eligible recipients: $11.97 billion from Section 134(a)(2) and $2 billion from Section 134(a)(3) (out of $8 billion provided in Section 134(a)(3)). The National Clean Investment Fund implements the statute�s use of funds for direct investments under Section 134(b)(1). Section 134(b)(1) directs recipients of funds for direct investments to (A) provide financial assistance to qualified projects at the national, regional, state, and local levels; (B) prioritize investment in qualified projects that would otherwise lack access to financing; and (C) retain, manage, recycle, and monetize all repayments and other revenue received from fees, interest, repaid loans, and any other financial assistance provided using the grant funds to ensure continued operability.

�Eligible recipients,� as that term is defined in Clean Air Act Section 134(c)(1), are eligible for grants from this competition. Section 134(c)(1) defines �eligible recipient� as a nonprofit organization that (A) is designed to provide capital, leverage private capital and provide other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services; (B) does not take deposits other than deposits from repayments and other revenue received from financial assistance using the grant funds; (C) is funded by public or charitable contributions; and (D) invests in or finances projects alone or in conjunction with other investors. Further information is provided in the NOFO about the specific criteria EPA will use to determine eligibility for funding under this program.

Fiscal year 2025: The statute limits the projects eligible for financial assistance under Section 134(b)(1) to �qualified projects.� Section 134(c)(3) provides that a qualified project is any project, activity or technology that (A) reduces or avoids greenhouse gas emissions or other forms of air pollution in partnership with, and by leveraging investment from, the private sector; or (B) assists communities in the efforts of those communities to reduce or avoid greenhouse gas emissions and other forms of air pollution. To find out more about this program and view the examples of the types of projects awarded under this assistance listing, please visit the following website: https://www.epa.gov/greenhouse-gas-reduction-fund/national-clean-investment-fund.