Climate Pollution Reduction Grants

These grants are provided under Section 60114 of the Inflation Reduction Act, Climate Pollution Reduction Grants, 42 U.S. Code § 7437 (or Public Law 117–169, title VI, Aug. 16, 2022, 136 Stat. 2076), which amended the Clean Air Act (CAA) by creating Section 137 for Greenhouse Gas Air Pollution Plans and Implementation Grants. Section 137 of CAA authorizes the EPA to fund planning grants to reduce carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride; and grants to states, air pollution control agencies, municipalities, Tribes, or a group of two or more of these entities to implement activities from those plans. Specifically, the CPRG grant program provided funding of $250 million for planning grants to eligible entities and approximately $4.6 billion to implement projects from those plans. Once completed, these plans will establish reduction targets and lay out a roadmap for expeditious implementation of investment-ready policies, programs, and projects to reduce emissions.

Section 137(d)(1) of the Clean Air Act defines eligible entities under the Climate Pollution Reduction Grants (CPRG) program as states, air pollution control agencies, municipalities, Tribes, and groups of any of these entities. Section 302 of the Clean Air Act defines “states” as including the 50 states, District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Consistent with this definition, the funding allocation approach described in this document also includes funding for the District of Columbia (DC), Puerto Rico, and four U.S. territories. Section 302 of the Clean Air Act defines "municipality" as a city, town, borough, county, parish, district, or other public body created by or pursuant to State law. Consistent with Section 137(d)(1) of the Clean Air Act, a group of municipalities, such as a council of governments, may also be considered an eligible entity under this program. Section 302 of the Clean Air Act defines “air pollution control agency” as: (1) A single State agency designated by the Governor of that State as the official State air pollution control agency for purposes of the Clean Air Act. (2) An agency established by two or more States and having substantial powers or duties pertaining to the prevention and control of air pollution. (3) A city, county, or other local government health authority, or, in the case of any city, county, or other local government in which there is an agency other than the health authority charged with responsibility for enforcing ordinances or laws relating to the prevention and control of air pollution, such other agency. (4) An agency of two or more municipalities located in the same State or in different States and having substantial powers or duties pertaining to the prevention and control of air pollution. (5) An agency of an Indian Tribe. Section 302 of the Clean Air Act defines “Indian Tribe” as any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native village, which is Federally recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. For certain competitive funding opportunities under this assistance listing, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency’s Assistance Agreement Competition Policy.

For competitive implementation awards, EPA will review and evaluate applications submissions in accordance with the terms, conditions, and criteria stated in the NOFO. Competitions will be conducted in accordance with EPA policies/regulations for competing assistance agreements. For non-competitive awards made under this assistance listing, EPA will conduct an administrative evaluation to determine the adequacy of the application in relation to grant regulations and to technical and program evaluation to determine the merit and relevance of the project. The Agency will then advise the applicant if funding is being considered. A final work plan will then be negotiated with the applicant.