EPA awards $20 billion to aid green enterprises

DETROIT — The Environmental Protection Agency on Thursday awarded $20 billion in federal green bank grants to eight community development banks and nonprofit organizations to use on projects that are meant to combat climate change in disadvantaged communities and help Americans save money and reduce their carbon footprints.

The money could fund tens of thousands of eligible projects ranging from residential heat pumps and other energy-efficient home improvements to larger-scale projects, such as electric vehicle charging stations and community cooling centers, according to senior officials in President Joe Biden’s administration.

The green bank that oversees the grants announced Thursday was created by Biden’s landmark climate law, the Inflation Reduction Act, passed in 2022.

Formally known as the Greenhouse Gas Reduction Fund, the $27 billion bank is one of many federal efforts to invest in solutions that cut planet-warming greenhouse gas emissions and address human-caused climate change, a topic Biden has emphasized in his presidency and Democratic reelection campaign.

As part of Thursday’s announcement, the $14 billion National Clean Investment Fund program granted money to three nonprofits that will partner with states and the private sector to provide affordable financing for projects across the country.

The $6 billion Clean Communities Investment Accelerator also granted money to five institutions that will work with other groups to establish hubs that make funding and technical assistance accessible to community lenders.