Update 1/30: On January 27, OMB released a memo expanding the funding freeze to all federal grants and assistance. That memo was rescinded on January 29 after being blocked by a federal judge. The underlying Executive Order remains in effect and many grantees are illegally being blocked from accessing obligated funds for IRA/IIJA programs. If you are unable to draw down funds, please:
Consider using this template language to reach out to your Program Officer and create an administrative record of the situation.
If an EPA grant, seek individual advice from Environmental Protection Network here
Last Monday marked a significant transition for all of us working in energy policy and programs, with the inauguration of President Trump. Changes in approach and procedures at federal agencies are underway already. Many of you have reached out with questions about what these changes mean for your work. We wanted to share some key points of information with you to inform next steps. We are also happy to schedule 1:1 time with you – please feel free to reach out.
Executive Order - Pause on Disbursements
President Trump’s Day One Executive Order entitled Unleashing American Energy included instructions to “immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58).” Additional guidance from the Office of Management and Budget the next day did little clarify the full impact. Two important things to note:
Awarded Grants: Signed grant awards are legal agreements between the federal government and the grantee with a set of protections enshrined in federal regulations. So long as the grantee is in compliance with the terms and conditions of their award, then this funding should be quite durable. It is important that you continue to uphold your obligations by continuing to fulfill the work you’ve been excited to pursue. Please reach out to Lawyers for Good Government if you have a legal question about how to protect your funding, and utilize these resources from the Environmental Protection Network to aid in compliance.
Tax Credits: Tax credits cannot be changed by Executive Order. They are written into the law. Our friends at NYU’s Tax Law Center have put out a great explainer on this. Accordingly, credits associated with projects placed in service in 2024 are safe, and it is more than likely that credits for 2025 projects, at the least, will be safe as well. Here also is L4GG's Guidance Brief on the issue. This is great news, since a new report from American Clean Power finds the tax credits deliver a 4x return on investment and will grow the economy by $1.9 trillion over the next ten years.
Locating Federal Agency Data
Information you need may no longer be available in its previous location. You can now access the CEJST tool through the Public Environmental Data Project; additional tools including the EPA EJ Screen are expected to be added soon. Numerous data sets are available through the Harvard Dataverse.
“What Does GGRF Mean For Me?” – $20 Billion That’s Here to Stay
We hear from lots of folks still trying to understand exactly what the Greenhouse Gas Reduction Fund (GGRF) is and how it might apply to their energy goals. Every day we are getting more clarity as the awardees announce projects and opportunities. Here are a few to check out:
CGC and ICLEI have announced the Municipal Investment Fund for qualifying cities, towns, counties, and tribes and their NGO partners to develop clean energy projects. Apply by February 5.
Climate United NEXT will provide $30 million in pre-development grants for nonprofits, governments, tribes and institutions of higher education. Additional application rounds will be opening this year.
Need inspiration? A few already announced projects include the Scenic Hill solar project in Arkansas, battery electric trucks at California ports, and commercial building upgrades and electric school buses.
If you’ve got a project, apply! There are several open application portals right now: CGC, Climate United, and Elemental Impact.
Open Opportunities. Federal opportunities remain open and we encourage you to apply!
Host an Energy Innovator Fellow at your State Energy Office - due Jan. 31.
Manufacturers can reduce operating costs and energy use with a free assessment and grant through the Industrial Training and Assessment Centers - ongoing applications.
FEMA’s BRIC program provides $750 million in grants to improve community resilience by reducing hazards including through nature-based solutions and building code adoption. Applications close April 18.
In the face of uncertainty, one thing is clear: we are here to support you in your important work. Please keep in touch and let us know how we can help!
Sincerely,
State Support Center