The Environmental Protection Agency on Friday announced the terms for doling out $20 billion through “climate banks” authorized by the Inflation Reduction Act, part of the massive green spending authorized by the law meant specifically to boost poorer towns and people harmed by pollution.
The EPA said it was setting up two programs, one with $14 billion in funding and the other with $6 billion, that would in turn each set up a handful of institutions that would partner with private-sector entities to finance green projects, which could include heat pumps, electric vehicle charging stations, building upgrades, and other similar items.
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The funds “will spur private investment into clean technology projects and expand economic opportunity for communities that have been left behind, for families that want lower energy costs, and for workers who need good-paying jobs,” EPA Administrator Michael Regan said in a statement.
The two programs add to a separate $7 billion program announced in June to boost solar power in places deemed low-income or disadvantaged, according to the EPA.
The agency said the deadline for applying for the program is Oct. 12.
The entities and private-sector partners that use the funds will have more discretion in financing projects than the federal government has under other provisions of the law meant to reduce emissions, such as the subsidies for electric vehicles and clean power.
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The funds will also come with stipulations that a certain amount of the financing be distributed to groups identified as low-income or disadvantaged.
“It’s been over a decade since we first put the idea of creating a national climate bank on paper," Sen. Chris Van Hollen (D-MD) said. "Today, that idea is becoming a reality."